social and environmental responsibility …nutiva.com/documents/nutiva_2014_csr.pdf · from the...
TRANSCRIPT
contents
CEO’s Perspective . . . . . . . . . . . . . . . . . . 3
Putting Our Values in Action
Innovation . . . . . . . . . . . . . . . . . . . . . . . 4
Purity . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Community . . . . . . . . . . . . . . . . . . . . . . 8
Well-being . . . . . . . . . . . . . . . . . . . . . . 10
Sustainability . . . . . . . . . . . . . . . . . . . . . . 12
Food for Thought . . . . . . . . . . . . . . . . . . 14
1% Grant Recipients . . . . . . . . . . . . . . . . . 15
2 | NUTIVA SOCIAL AND ENVIRONMENTAL RESPONSIBILITY REPORT 2013
NUTIVA SOCIAL AND ENVIRONMENTAL RESPONSIBILITY REPORT 2013 | 3
CEO’S PERSPECTIVE JOHN ROULAC
Dear Friends,
Welcome to our first annual Social and Environmental Responsibility
Report. At Nutiva, we are revolutionizing the way the world eats. As
you read this report, you will see the many ways we accomplished this
mission in 2013. From the launching of fair trade red palm oil—our
newest superfood of superior nutritional value—to our 1.8 millionth
dollar donated to sustainable agriculture and social causes, to our
leadership and advocacy for non-GMO foods and industrial hemp
farming in America, we are accelerating the organic food movement!
It has been a fantastic year of growth and change for Nutiva. For the fifth year in a row, Nutiva was named one
of the 5000 fastest-growing private companies in America by Inc. Magazine. Nutiva has grown an average of
55% each year since 2002. In the past 12 months, the demand for organic chia has increased significantly, and
we have doubled sales.
Our persistent growth also allowed Nutiva to move its warehouse operations from Oxnard, California to its
Richmond headquarters in early 2013. The new location, eight times larger than our previous home and com-
plete with expanded machinery, brought with it more than fifty new jobs this past year. We expect additional
job growth in 2014, as we continue to explore increasing our in-house production. With a new and expanded
team, Nutiva also improved its human resources structure and employee benefits.
As our business grows, so does our capacity to give back 1% of sales through our new nonprofit, the Nutiva
Nourish Foundation. Our foundation giving allows us to further revolutionize the way the world eats by funding
sustainable farming, urban gardening, food activism, and nutrition awareness. However, we can't forget that as
our business grows, so does our potential negative impact on the environment. For this reason, we launched a
Sustainability Program in 2013, funded tree planting, implemented green business measures, and relocated our
headquarters 16 miles from the Port of Oakland where our raw materials are shipped. Furthermore, we committed
to improvements that allowed us to obtain three new social and environmental certifications: Fair Trade, B Corp,
and Green Business. We know we need to do more, and in 2014 we will see an increase in terms of measuring
and improving our impact on the world.
In sum, this has been a year when we renewed our promise to pioneer new and better ways to do business.
Here’s to our collective future.
JOHN W. ROULAC FOUNDER & CEO
At Nutiva, we are revolutionizing the way the world eats.
We introduced America’s first hemp food barat a time when the extraordinary nutritionalvalue and ecological benefits of hemp foodswere little known. We then went on to introduceother superfoods such as hemp oil, shelledhemp seeds, and hemp protein powder—named Best New Supplement at the NaturalProducts Expo Show in Washington, D.C. theyear it debuted.
Our success in the marketplace sparked agovernment backlash based on prejudice andmisinformation dating from the 1930s. In 1999,drug enforcement and U.S. Customs agenciesseized hemp food shipments from Canada inthe mistaken belief that hemp foods were drugrelated. In a unified effort with customers andthe entire industrial hemp industry, we launcheda grassroots campaign, and a 2004 U.S. Courtof Appeals victory cleared the way for hempfoods to appear on grocery shelves across thenation.
NUTIVA STANDS FOR popularizing hemp foods
innovationDESIGN AND MARKETINGWe just released our new packaging in artful, colorful, yet
simple watercolor designs. The white background harkens
to the purity of our product, while the watercolor outlines
the essence of the coconut husk, chia flower, hemp seed,
and red palm fruit. With so many superfood competitors in
the food industry, we focus on continual improvement while
challenging the status quo.
We seek innovative ways to educate our consumers and
use grass roots marketing campaigns to bring our message
to the market. On our Facebook site, we gave away product
and Vitamix blenders to many of our loyal customers, while
increasing our audience to 115,700 fans. Recently, we launched
a campaign to educate consumers about the difference
between the sustainable palm fruit oil we provide and the
non-organic, palm oil that has damaged critical habitat in
Southeast Asia.
PRODUCT LAUNCHIn the middle of 2013, we launched our newest product—red
palm oil. Like the other superfoods we carry, red palm oil is
highly nutrient dense, with betacarotene and vitamins A and
E. Some red palm oils have what might be described as a
harsh odor and flavor. We have a proprietary cold-filtration
process that results in a delicate, buttery flavor excellent in
sauces, spreads, dressings and medium heat sautéing.
PARTNERSHIPSNutiva, along with several other organic food brands including
Numi Organic Tea, Alter-Eco Foods, Guayaki, and Traditional
Medicinals, joined forces to create OSC2 (One Step Closer
to an Organic Sustainable Community). OSC2 is a coalition
of like-minded, socially responsible brands who have come
together to drive positive and sustainable change in the food
industry. Like Nutiva’s CEO, the others participating in OSC2
are passionate leaders who believe in the power of collabora-
tion to affect social change.
4 | NUTIVA SOCIAL AND ENVIRONMENTAL RESPONSIBILITY REPORT 2013
In an effort to reduce our plastic usage, we replaced bubble wrap
with a 100% recyclable pulp container to ship our glass jars for
web orders.
NUTIVA SOCIAL AND ENVIRONMENTAL RESPONSIBILITY REPORT 2013 | 5
Our innovative new packaging in artful yet simple watercolor designs harkens to the purity of our product.
6 | NUTIVA SOCIAL AND ENVIRONMENTAL RESPONSIBILITY REPORT 2013
purityTHE ORGANIC DIFFERENCEWe continue to source 100% of our superfoods from
organic farms, surpassing industry standards. Farming
without toxic pesticides, herbicides, and fertilizers yields
healthier soil, which translates to healthier food for our
families and ourselves. Our commitment to a highly pure
product is not only better for our bodies, it’s better for
the planet. Organic farming emits less greenhouse gases
during production and is a better way to sustain the
health of soils, water, living organisms and ecosystems.
HABITAT-FRIENDLY FARMING In June of 2013 we added a new product line, Organic
Red Palm Oil, a nutrient-dense, versatile baking and
cooking oil. Red palm oil contains the highest amounts
of Vitamins A and E—antioxidants with considerable
health benefits—of any plant-based oil.
Cultivation practices on major palm oil farms in Indonesia
and Malaysia often destroy large stretches of jungle and
endanger the wildlife, specifically orangutan habitats.
Most palm oil in the food supply is non-organic.
Our red palm oil is certified organic and fair trade and
comes from small family farms in Ecuador that are sus-
tainable and habitat-friendly. These family farms are not
part of the current deforestation and habitat destruction
(in fact, orangutans do not even live in Ecuador).
We are working with a local partner named Natural
Habitats to promote sustainable agriculture and social
programs in Ecuador. Our partnership has generated
the revenue to build a small health clinic for the local
doctor, hire a full-time soccer coach, and provide
uniforms for the local youth. We are also exploring
permaculture principles with local farmers in the palm-
growing communities.
We are concerned about the impact genetically mod-ified organisms (GMOs) are having on our naturalworld and human health. Since our inception in 1999,we have had a non-GMO policy and only source non-GMO ingredients. Currently, GMO crop pollens areblown across fields and often cross-pollinate non-GMO crops. To date, the agricultural biotech industryhas not taken responsible measures to deal with thissituation. Due to our concern, Nutiva established anon-GMO audit trail to reduce the chances that Nutivaproducts may contain genetically modified organisms.
We expanded our HACCP-certified quality controlteam and obtained SQF Level 2 certification for ourfacility, bringing more rigorous compliance to our coreoperations. In order to ensure the highest quality andpurest product, our products are certified kosher byOrthodox Union and certified organic by Quality Assurance International (QAI) and Ecocert ICO. Infact, we obtained the right to use the new USDA Organic symbol when it became effective in October,2002. Believing in the rights and fair treatment offarmers, we added Fair Trade USA and Fair For Lifecertifications on some of our products.
NUTIVA STANDS FOR certified organic,
non-gmo, fair trade, and safe quality manufacturing
o
We believe in producing a highly pure product, so we source 100% of our superfoods from organic farms,
surpassing industry standards. Farming without toxic pesticides, herbicides and fertilizers yields healthier
soil, which translates to healthier food.
NUTIVA SOCIAL AND ENVIRONMENTAL RESPONSIBILITY REPORT 2013 | 7
With financial support from Nutiva, the advocacy group GMO Inside
called on consumers to tell General Mills to take GMOs out of Cheerios.
8 | NUTIVA SOCIAL AND ENVIRONMENTAL RESPONSIBILITY REPORT 2013
NUTIVA STANDS FOR donating 1% of sales
communitySCHOOL TREE PLANTINGWith funding from the Nutiva Nourish Foundation, the nonprofit Common
Vision planted fruit tree gardens at two local schools this past year. Over
the next five years, Common Vision will plant a fruit tree garden of 10-25
trees at every public school in the city of Richmond. This initiative, the first
of its type, will significantly impact our local foodshed and contribute to a
culture of healthy eating.
Improving access to healthy food through planting urban trees and gardens is
one of four focus areas of our foundation giving. Other areas include Sustain-
able Farming, Food and Environmental Activism, and Healthy Communities.
YOUTH BASKETBALL CAMPFor three days, 30 Richmond youth showed up at Nutiva’s headquarters to
run, dribble, pass, rebound, shoot and swish. For a brief time, Nutiva staff
members left their forklifts, production lines, and desks to run drills and
serve healthy snacks.
Instilling healthy eating habits and introducing nutritious foods is key for
raising healthy kids, especially given the rise in diet-related issues in America
such as obesity and diabetes.
FOR OUR FARMERS To date, we have donated 35,000 coconut seedlings to small farmers in the
Philippines, and we have pledged to donate 100,000 total trees by 2015. In
only five years, the seedlings will grow into profitable, producing coconut
trees, known as “money trees.”
We also sponsored a conference and training on organic farming for coconut
growers in the Philippines. Because of the high growth of our coconut sales,
a new factory bringing 1,400 jobs is opening up in an area of the Philippines
where jobs are scarce.
ADVOCACY With financial support from Nutiva, the advocacy group GMO Inside called
on consumers to tell General Mills to take GMOs out of Cheerios. In a ground -
breaking decision, General Mills announced that it will stop using genetically
modified ingredients in its original Cheerios.
We have donated a total of $1.8Million since our 1% programbegan in 1999. Last year, wegave away $670,000 to fundGMO foods labeling and aware-ness, industrial hemp farmingadvocacy, organic sustainablefarming, tree planting, urbangardens, and youth programs innutrition education and environ-mental stewardship. In 2014,Nutiva plans to give away over$800,000.
A tenet of our corporate giving strategy is supporting healthy communities. We accomplish this through the
Nutiva Nourish Foundation and our internal Community Outreach Program.
NUTIVA SOCIAL AND ENVIRONMENTAL RESPONSIBILITY REPORT 2013 | 9
Over the next five years, we are funding the planting of fruit tree
gardens at every public school in the City of Richmond. This initiative
will significantly impact our local foodshed and contribute to a
culture of healthy eating.
10 | NUTIVA SOCIAL AND ENVIRONMENTAL RESPONSIBILITY REPORT 2013
NUTIVA STANDS FOR certified b-corporation
well-beingNOURISHMENTWe recognized the incredible food knowledge and
cooking passion of our Receptionist and promoted her
to part-time Staff Chef. As a result, staff enjoy weekly
kefir with chia, hemp and chia smoothies, and nutritious
lunches made with organic food harvested from our
Edible Garden.
HEALTHWellness offerings in the last year include weekly onsite
yoga classes, a new exercise area, gym reimbursements,
a monthly Film & Speaker Series, and a Community
Outreach Program. Health care benefits pay for 80%
of employee health insurance cost and 65% of
dependent cost.
FUNA newly formed Fun Committee injects energy and
warmth into our office culture with employee events
and potlucks, Friday treats, and a generous staff
recognition program.
PROFESSIONAL DEVELOPMENTSeveral programs were implemented to enhance
personal and professional development of staff,
including: the creation of a collaborative work-training
program called Natural Products University, inclusion
of a work-style assessment and development, and
implementation of leadership coaching for senior staff.
Celebrating unity and engagement, 90 employees from
production to senior management gathered for our
annual Tribal Retreat featuring inspirational speaker
Nipun Mehta. Ideas generated in small groups were
incorporated into the Nutiva Cultural Guidebook.
We are proud to be a Certified B Corporation. CertifiedB Corps are socially responsible companies that observe a triple bottom line: holding themselves accountable to profit generation, social impacts, andenvironmental impacts. There are currently over 910Certified B Corp orations from more than 60 indus-tries in 27 countries with one unifying goal: to redefine success in business. We became a CertifiedB Corporation because we believe thatbusiness has a higher social purposebeyond profit. The B Corp assessmentgives us a frame work to measure oursuccess against rigorous values andresponsible practices as we scale as acompany.
NUTIVA SOCIAL AND ENVIRONMENTAL RESPONSIBILITY REPORT 2013 | 11
As a result of our commitment to well-being, we installed an Edible Garden at the front entrance of our
headquarters. Our Staff Chef harvests organic kale, cilantro, strawberries, and lettuce to make nutritious
smoothies and lunches for our team.
Our new Sustainability Program ensures employees are trained how
to recycle and compost their food scraps. Compost is processed onsite
and put back into our Edible Garden.
12 | NUTIVA SOCIAL AND ENVIRONMENTAL RESPONSIBILITY REPORT 2013
Nutiva has always valued organics, sustainable agriculture,
tree planting and other green practices, but we’ve never
measured the company’s overall environmental impact. This
past year, we began collecting baseline metrics to quantify
and report on key impacts. By next year, our goal is to identify
sustainability objectives, create an interdepartmental Green
Team, set target improvements, and identify top priorities.
CO2 EMISSIONSWe are committed to reducing our carbon emissions. As
a first step, we measured the carbon emissions from our
corporate headquarters, employee air travel, and employee
commuting according to the Greenhouse Gas Protocol
Standard. In 2013, we produced approximately 360.6 metric
tonnes of CO2 emissions from the following sources:
� 23.7 metric tonnes from onsite natural gas
� 82.4 metric tonnes from onsite electrical use
� 146.4 metric tonnes from employee commuting
� 108.1 metric tonnes from employee air travel
An average of 69 employees commuted to our headquarters
an average distance of 35 miles (round trip). This equates to
7,189 miles driven by employees per week. After installing two
EV charging stations in late 2013, five employees purchased
and now commute in electric vehicles.
ENERGY SAVINGSWe switched from 20% renewable energy from utility provider
PG&E to 100% renewable energy via the Marin Clean Energy
program. This will have the equivalent carbon reduction effect
of planting 2,015 fully mature trees. Furthermore, joining the
Marin Clean Energy program will also help support the devel-
opment of new solar and wind facilities in the western U.S.
Even with 100% renewable energy, we took steps to reduce
our energy consumption. We installed more efficient lighting
in our offices, purchased Energy Star certified products,
installed motion detecting lights, and turned lights off
when not in use.
TREE PLANTINGOur funding of tree planting and urban gardens provides a
number of environmental benefits and helps to lower our
carbon footprint. The average tree absorbs about one metric
tonne of carbon dioxide in its lifetime (according to the Pew
Center on Climate Change). This means that Nutiva will help
offset approximately 299 metric tonnes of carbon dioxide
from Richmond tree planting (over the lifetime of a tree).
WATER CONSUMPTIONTo reduce our water consumption, we replaced five inefficient,
older toilets with new low flow toilets, installed a waterless
urinal, and installed low flow toilets in two new handicapped
accessible restrooms. This will save us more than 55,000
gallons of water annually.
GREEN PACKAGINGWe reduced our plastic usage by replacing bubble wrap with
a 100% recycled pulp container and recycled paper sheets
to ship our glass jars for web orders. We reduced our overall
packaging by decreasing our bag size. We are exploring
non-GMO compostable packaging and a solution to replace
plastic shrink wrap with a biodegradable or recycled wrap.
WASTE REDUCTIONWe reduced the size of our landfill bin through the
following actions:
� Composted kitchen scraps and paper towels from kitchens
and restrooms
� Separated e-waste from our landfill waste
� Separated spilled product from our landfill waste and
donated it for livestock feed
� Engaged a company to buy recycled items not included in
our waste services pick up
sustainability
NUTIVA SOCIAL AND ENVIRONMENTAL RESPONSIBILITY REPORT 2013 | 13
NUTIVA STANDS FOR
certified green business
We took a positive step towards
sustainability in becoming a certified
Bay Area Green Business in 2013.
Green Business standards are both
physical and behavioral, covering
both office and manufacturing
practices. We invested a notable
amount in tenant improvements at
our new facility in order to be state of
the art, comply with regulations, and
upgrade outdated and inefficient
features. In addition, we implemented
a Sustainability Program whereby
green policies inform eco-friendly
office and warehouse practices.
Nutiva’s 1% program funded the production of these films:
� GMO OMG � Bringing it Home � Ground Operations
� Occupy the Farm � Vanishing of the Bees � Growing Cities
14 | NUTIVA SOCIAL AND ENVIRONMENTAL RESPONSIBILITY REPORT 2013
food for thoughtCOCONUT AND PALM vs. SOY AND CANOLA
hich do you think has a lower environmental foot-
print: annual crops soy and canola grown and
consumed here in the United States, or tree crops
coconut and palm grown in the Philippines and Ecuador
and transported to the U.S. via cargo ship? If you are like
the majority of people, soy and canola would seem like the
obvious answer. The truth, however, might surprise you.
A life cycle assessment conducted in 2012 by So
Delicious found coconut milk shipped from Asia
had dramatically less environmental impact
than soy milk produced in the U.S.
Greenhouse gases from coconut
milk were six times less than soy
milk and energy demands were
60% less. In fact, coconut milk
out performed soy milk in
every category measured,
including energy demand,
global warming potential,
ozone depletion, water
consumption, acidifica-
tion, eutrophication,
smog, and solid waste.
When coconuts trees
get abundant rainfall, are
organically grown, and are
harvested with minimal
mechanical inputs (like the coconuts we source), they have
a much smaller environmental footprint than corn or soy
harvested annually in the U.S. This is true even when taking
into account shipping from Asia, since carbon emissions
from marine container shipping are 32% to 55% more
efficient than rail transportation according to a 2011 study
by Herbert Engineering Corp.
Similarly, in a life cycle assessment conducted in
2009, palm oil shipped from Asia had a lower
overall carbon footprint than canola oil
produced in North America. In addition
to transportation, the study measured
the environmental impact of farm
machinery, crop production, pesti-
cides, and fertilizers. Palm oil was
the clear winner in each of these
categories.
Our Red Palm Oil has an even
lower environmental impact
than the palm oil measured
in the study because it is
sourced from Ecuador,
meaning there is no defor-
estation or habit destruction
of endangered orangutans—a
problem in areas of Indonesia
and Malaysia.
W
1% grant recipientsSUSTAINABLE FARMING
Amazon Watch
American Botanical Council
Center for Food Safety
Ecological Farming Association
Empowerment Works
Farmer Veteran Coalition
Global Green Grants
Guelph Conference
Organic Consumers Association
Pennsylvania Association
for Sustainable Agriculture
Pesticide Action Network
Rodale Institute
The Pachamama Alliance
Women’s Earth Alliance
HEALTHY COMMUNITIES
Ceres Community Project
Mill Valley Film Festival
New York Coalition for
Healthy School Food
Ojai Valley Defense Fund
Ojai Valley Green Coalition
One World Children’s Fund
Richmond Community Foundation
RYSE
The Healthetarians
The NOMAD Foundation
Transdimensional Illumination
YMCA Richmond
Youth Environmental Strategies
FOOD & ENVIRONMENTAL ACTIVISM
Bioneers Conference
Biosafety Alliance
Bringing It Home film
Canadian Biotechnology Action Network
Earth Island Institute
Food Democracy Action
Global Exchange
GMO Inside
GMO OMG film
Ground Operations film
Growing Cities film
Institute for Responsible Technology
Moms Across America
Non-GMO Project
Occupy the Farm film
The Gaia Foundation
Vanishing of the Bees film
Vote Hemp
Yes on 522
TREES & GARDENS
Acta Non Verba
Captain Planet Foundation
Common Vision
Compass Green Project
Farms to Grow
Friends of SF Environment
Small farmers in the Philippines
The Watershed Project
Urban Tilth
NUTIVA SOCIAL AND ENVIRONMENTAL RESPONSIBILITY REPORT 2013 | 15