Corporate Sustainability Practices in The FMCG Industry

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CORPORATE

SUSTAINABILITY
Group 10:
Annmaria (PGP/24/130)
Debapriya (PGP/24/140)
Javin (PGP/24/150)

PRACTICES IN THE Meghana (PGP/24/160)


Rishav (PGP/24/170)
Sonu (PGP/24/180)

FMCG INDUSTRY
Sustainability Goals Aligned
with United Nations Sustainable
Development Goals (SDGs)

Achieve sustainably sourced priority raw materials based on business needs by 2025
Making Agriculture more intelligent, Achieve 100% sustainably sourced potato, whole corn, oats, oranges, palm oil and
inclusive, and gentler on Earth sugar cane by 2020

Deliver safe water access to 25 million people by 2025


Using water more efficiently,
Improve operational water-use efficiency by 25% by 2025
replenishing water locally, and Improve water-use efficiency by 15% in our agricultural supply chain by 2025
helping to ensure water security Replenish 100% of the water we consume in manufacturing operations by 2025

Supporting a circular economy by reducing, Design 100% of packaging to be recyclable, compostable, or biodegradable by 2025
recycling, and reinventing their packaging Increase recycled content in our plastics packaging to 25% by 2025

Reduce added sugars: ≥ 67% of beverage portfolio will have ≤100 Calories from added
sugars per 12-ounce serving by 2025
Improving choices across their portfolio

REPORTING
Reduce sodium: ≥ 75% of foods portfolio will not exceed 1.3 milligrams of sodium
and integrating purpose into their brands
per Calorie by 2025
Reduce saturated fat: ≥ 75% of foods portfolio will not exceed 1.1 grams of saturated fat
per 100 Calories by 2025
Reducing greenhouse gas (GHG) emissions
Reduce absolute GHG emissions across PepsiCo’s value chain by 20% by 2030
across every step of their value chain
Extend the principles of our Supplier Code of Conduct to all our franchisees and joint
Advancing respect for human rights, ventures by 2025
promoting diverse and inclusive Achieve gender parity by 2025 in management roles
workspaces, and empowering women Invest $100 million by 2025 to provide 12.5 million women with essential resources for
workforce readiness and in programs that empower women in the food system
P&G
Ambition 2030: Enabling & Inspiring a Positive Impact

Brands: All P&G’s leadership brands including Whisper,


Ariel, Ambi Pur, Head & Shoulders, Pantene, Pampers, and
Tide will enable responsible consumption through packaging
that is 100% recyclable or reusable by 2030.
Supply Chain: P&G manufacturing sites will cut GHGs
emissions in half and will purchase enough renewable
electricity to power 100% of our plants.
Society: P&G will continue to create transformative
partnerships that enable people, the planet and our business
to thrive, including those that stem the flow of plastic into the
world’s ocean, protect and enhance forests, expand recycling
solutions for absorbent hygiene products, and protect water
in priority basins around the world.
Employees: P&G will engage, equip and reward employees
for building sustainability thinking and practices into their
everyday work. We will reward progress and integrate
recognition into performance assessments.
Reducing Carbon Footprint: All Manufacturing Facilities to
send Zero manufacturing waste to landfill (ZMWTL) i.e., no
Manufacturing Discharge into Environment.
Palm Oil: P&G is Committed to Zero deforestation due to
palm oil; P&G is also member of Roundtable on Sustainable
Palm Oil (RSPO) to completely make Palm Oil sustainable
and Profitable for all Stakeholders.
Plastic Waste Management: P&G is the founding Member
of Alliance to End Plastic waste launched in Jan 2019, with
vision to end Plastic waste in Environment is now more than
50 members strong.
COVID
Asha Daan Donated cleaning products to hospitals in Maharashtra, West Bengal, etc,
Home for differently-abled children, health kits, food items to patients, health officials & low-income families.
HIV-positive patients and destitute Fair & Lovely Career Foundation
people in Mumbai, over 400 inmates Educational scholarships to academically
exceptional girls from financially
B challenged backgrounds. 1400 girls
benefitted till 2017.

Sustainable Sourcing
76% of tomatoes used in Kissan ketchup, 100% Strengthening growth Segments
of chicory & 78% of tea sourced sustainably Increased penetration of core brands like
Fair&Lovely, Pond’s, Sunsilk, Dove etc by
All Unilever chicory farmers in impactful innovations, understanding the
India covered under Unilever needs of consumers & scaling new
Sustainable Agriculture Code
providing knowledge &
C benefit spaces.

expertise in sustainable
agriculture practices Building purpose-led brands
Clinic Plus #MeriBetiStrong campaign on
GHG, Waste, Water Reduction in Manufacturing Daughters’ Day advocating raising of a
In 2019, CO2 emissions per ton of production generation of strong daughters. Similar
reduced by 85%, water usage by 58%, waste intiatives for Lifebuoy, CloseUp etc
generated by 63 & all non-hazardous waste recycled
SUSTAINABIL • Indian multinational conglomerate
ITY AT ITC
• ITC’s Businesses and value chains support 6
founded in 1910
• Major presence in numerous fields-
million sustainable livelihoods food, hotels, paper products and
• Adopts the *Triple Bottomline Approach packaging, tobacco products and
apparel
• Focus Areas- building climate resilience,
ensuring water security for all, managing waste,
creating sustainable and resilient value chains and Sustainability Vision: Make societal value creation the bedrock of
generating sustainable livelihoods.
strategy
• Has scaled pre-existing initiatives over the years
CSR SPENDING (In
Important initiatives: *Triple Bottomline Approach: Method
INR)
2018 275.96 Cr
1. e-Choupal Programme to comprehensively measure the
2. Mission Sunehra Kal- Social Investment 2019 291 Cr contribution of a company along 3
3. Social Forestry Programme 2020 307 Cr dimensions- social, economic and
4. Green Building Movement ecological
• 41.2% of
energy from
renewable
sources
• 99.82% of
non-hazardous
waste reused
or recycled
SHARED VALUE • Swiss multinational conglomerate
AT NESTLE
• Believes in creating Shared Value
founded in 1866
• Major presence in baby food,
• Focus Areas- enabling healthier and happier medical food, bottled water,
lives, helping develop thriving and resilient breakfast cereals, ice cream, pet
communities, stewarding resources and foods and snacks
environment, stakeholder engagement and
empowerment
Sustainability Vision: Creation of Shared Value for all stakeholders
• Has scaled pre-existing initiatives over the years

Important initiatives: Focus Areas:


1. Nestle for healthier kids to innovate tasty healthy • Help 50 million children lead healthier lives
• Improve 30 livelihoods in local
foods for kids and adults
communities
2. Farmer connect and the Nescafe plan to • Strive for zero environmental impact
empower coffee farmers
3. Nestle needs YOUth initiative to provide
employment to local community youth
TOWARDS SUSTAINABILITY GOALS
RESILIENCE CLIMATE WASTE WATER
1.5+ TRILLION
AU$1.625M 2020 25
10% 2030 100
liters of water replenished
2019 160
recycled material in PET since 2012
combined fire relief 2019 24
plastic packaging globally 2019 60 2018 155
package to support
firefighters and affected
2018 21 2018 58 10.6M+ 2017 150
communities
2017 19 20% 2017 59 people reached through our
2016 133
2016 14 recycled material in 2016 59 water and sanitation
packaging globally programs since 2010
$400,000 0 5 10 15 20 25 30 0 20 40 60 80 100

grant by the Coca-Cola Carbon Footprint:


88% Percentage of Bottles A- Percentage of water
Foundation to The Percentage reduction and Cans recycled CDP Water Disclosure used returned to nature
Salvation Army for of packaging is recyclable
since 2010 Score due to effective
immediate relief to management of water in
communities affected by operations
Hurricane Dorian

2019 HIGHLIGHTS AGRICULTURE HEALTH PEOPLE


Sustainability achieved in 2020 1
• All coffee used in Costa
2020 100
350,000 TONS -4 2019
2020
2019 4.6
5
2019 1.3
Coffee (Rainforest 2019 54 added sugar removed on an
Alliance) annualized basis through 2018 3.2 2018 1.5
• All sugar used in 2018 44 product reformulations in 2017 1.6
-1.7 2018 2017 2.4
Australia 2013 8 2019. 2016 1.2
2016 1.7
• All soybeans sourced
0 20 40 60 80 100 120 -5 -4 -3 -2 -1 0 0 1 2 3 4 5 6
18 of 20
54% Percentage of top brands have a no-sugar Percentage change in Number of women Percentage of the
of ingredients sourced ingredients volume option Sugar per 100 ML since entrepreneurs (in company’s annual
sustainability, compared to certified to an SAGP- 2017 millions) economically operating income
44% in 2018 equivalent sustainable empowered by invested back into local
agriculture standard company communities
Health Being consumables, health is an important parameter for FMCG products that
the companies must address in order to promote sustainable lifestyle.

Agriculture The raw resource used for producing FMCG products are agricultural products.
Agricultural activities thus form an important link in the value chain of FMCG
Companies.
CONSUMER GOODS

PRODUCT
FAST MOVING

Waste Packaging for FMCG Products generate tones of waste globally, and
companies must address this concern.

Water Production of FMCG products are water intensive and companies adopt water
replenishing operational strategies to address this issue.

Climate Companies need to look for methods to cut their carbon footprint across their
value chains. They need to adopt practices that generate minimal Green House
Gases.
PRODUCTION

People The companies need to address the lives of the millions of stakeholders that
contribute to the company’s value chain, and need to contribute towards
creating a better shared future for the communities.
TRENDS
Coca-Cola PepsiCo P&G ITC Nestle Unilever
Health Introducing products with 47% of beverage portfolio Whisper School Program-to 1.75 billion euro invested into In 2017, 47% of Company’s total
lower sugar content met 2025 added sugars educate girls on menstrual Nestle’s research for healthier kids food and beverage portfolio met
Smaller packages to reduction target, goal of Hygiene Practices leading to increase in micronutrient country’s highest nutritional
reduce intake 67%. Health& Hygiene Kit for content in food products standards
61% of portfolio met sodium disaster affected families
reduction targets

Climate Carbon Transparency Reducing Greenhouse Gas Reducing GHGs Emissions by One of the few carbon 40% reduction in Greenhouse 54% Reduction in CO2 emissions
Emission Goals across Emissions across every part 50% across every part of the positive companies in the emissions per tonne of product per tonne of production
every part of the value of the value chain value chain; To Purchase country since 2007 Commitment to source 100% of
chain renewable electricity to power Alliance for water stewardship agricultural raw materials
Climate Resiliency: Help 100% of P&G Plants; All 45% of total energy certification awarded to 20 factories sustainably by 2020
communities affected by Manufacturing Plants to be requirements sourced from for water mgmt. practices
climate change Zero manufacturing waste to renewable sources
Landfill.

Waste Design recyclable 35% reduction of virgin Ensure Packing Won’t Find its Launched sustainable mgmt. 253 factories globally have Status of zero non hazardous
packaging plastic content across way to Ocean & Protect water model multi layered plastic achieved status of 100% recyclable waste to landfill achieved and
Collect used packaging beverage portfolio To Recover & Recycle packaging waste in waste 100% of non hazardous waste
Partner with communities Packaging Waste. partnership with PMC recycled
for Waste Collection To Establish Absorbent
(PACE, PETCO) Hygiene Products Recycling
facility

Water Using water more efficiently, replenishing water locally, Phosphate-free products that ITC is one of the few water 38.5% reduction in water Through HUF, 450 bn water has
and helping to ensure water security deliver same performance while positive countries in India withdrawal per tonne of product been saved. Company aims to
helping preserve the quality of since 2007 turn water positive in most
water resources countries by 2025

Agricultur Supporting farmers Making agriculture more Palm Oil Sustainability- Company runs e-choupal Supports Coffee farmers by Farmer
intelligent, inclusive, and Supporting Farmers and making program for empowering connect and the Nescafe Plan and
e gentler on the earth whole supply chain truly farmers by providing them plans to empower their main
80% of raw ingredients sustainable weather forecasts and access stakeholder
sustainably sourced to market prices

People 41% women managers in 2019, P&G Siksha to empower Runs vocational training 2030 target is to improve 30 million HUF has skill development
goal of 50% by 2020. children by making education courses for rural women livelihoods in communities directly projects in 2400 villages in 57
$38.5M invested since 2016 for accessible. connected to business activities districts with 20 partners
women empowerment Support Defense NGOs Jobs and internships to local youth Project Shakti to financially
through Nestle needs YOUth empower women
COMAPARATIVE ANALYSIS: IDENTIFYING DIFFERENCES

ITC Limited Nestle Coca Cola PepsiCo HUL P&G


Focus Area of Building Eradication of Environmental Ensuring Women Quality
Importance sustainable hunger and Sustainability ecological Empowerment Education
livelihoods malnutrition balance

No. of SDG goals 8 goals 17 goals 10 goals 7 goals 4 goals 17 goals


aligned with

PACKAGIN
PACKAGIN INGREDIENT CLARITY
G
G
• Focus on reducing plastic dependence has become a priority amongst most • Improving ingredient clarity: HUL
FMCG companies and P&G have increasingly
• PepsiCo is lagging in this regard and has not reduced plastic dependence increased transparency by
providing ingredient information
on products

FAIR TRADE • Lack of ingredient clarity: Zero


PRACTICES sugar variants of soda launched by
• Nestle sources fair trade cocoa beans for its KitKat brand while ITC has limited fair PepsiCo and Coca Cola do not
trade practices to sourcing tobacco leaves alone and not for its chocolate brand clearly specify what ingredients
‘Fabelle’ contribute sweetness to the product
Reporting
Nestle’s Creating Shared Value and Sustainability Report is prepared in accordance with the latest GRI Standards and
verified by a third-party organization, Bureau Veritas. Nestlé is committed to follow the Ten Principles of the UN Global
Compact (UNGC) on human rights, labor, environment and anti-corruption to UNGC.

HUL provides its Sustainability Report as part of an Integrated Report prepared according to the guiding principles of the
Integrated Reporting Framework recommended by the International Integrated Reporting Council (IIRC). Statutory
Reports, including the Report of Board of Directors, the Management Discussion and Analysis (MD&A) and the Corporate
Governance Report, are as per the regulatory requirements mandated by the Companies Act, 2013.

ITC’s Sustainability Reports are prepared at the highest ‘In Accordance-Comprehensive’ level of the Global Reporting
Initiative (GRI) Standards and is externally verified.

P&G uses GRI standard as well as SASB Index which is a disclosure framework for the Household and Personal Products
Sector created by The Sustainability Accounting Standards Board (SASB) .

The sustainability reports of Coco Cola are prepared in accordance with the GRI Standards. They also conform to the Task
Force on Climate-related Financial Disclosures (TCFD), the United Nations Global Compact (UNGC) and the United
Nations Guiding Principles Reporting Framework (UNGPRF). The company policies align with 10 of the 17 sustainability
goals laid down by UN in its Sustainable Development Goals (SDGs).

PepsiCo's sustainability reports are based on the GRI Sustainability Reporting Guidelines. The assessment includes a 3
step process: Identification, Prioritization and Validation.

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