sustainability as a business strategy - winston & strawn · pdf filewe’re leveraging...
TRANSCRIPT
Sustainability as a Business Strategygy
October 7, 2010
We’ll discuss our…
Approach Projects&Approach Projects&
d i bili… around sustainability
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Our Structure
In 2006 CEO & Board made Sustainability i it t K ft F da priority at Kraft Foods
We moved sustainability out of Public Affairsy
Created small, global team at center to set strategicdi ection and p o ide g idance into the b siness nitsdirection and provide guidance into the business units
Focused efforts into six core areas
Established measurable goals
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We’re leveraging sustainability as a business strategy
E i
Economic
EnvironmentSociety
Economic
Sustainability Sustainability LensLens
Social Environmental
Manage costs/deliver savings Drive growth Risk Management
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Driving productivity & growth through sustainability-related projects
A focused approach has us on the path for positive change
The Sustainability Wheel
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The Sustainability Wheel
Our goals keep us on track…
GoalsGoals TargetsTargets ActualsActuals (thru ’09)(thru ’09)
Energy Reduce by 25% Down 15%
Energy-related carbon dioxide emissions Reduce by 25% Down 17%
WaterReduce by 15%
Reset goal to 35% Down 32%
Waste Reduce by 15%
Reset goal to 35% Down 30%
Reset goal to 35%
PackagingEliminate 150MM pounds
Reset to 225 MM pounds174MM pounds out
6Base Year: 2005All Goals to be achieved by year end 2011
All of this is helping us leave aBetter World behind…
We’re integrating g gsustainability into our
businessbusiness…
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Consumer demand helpsfuel the fire...By understanding the “green” consumer
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All of this is helping us leave aBetter World behind…
www kraftfoodscompany comwww.kraftfoodscompany.com
www.kraftfoodsbetterworld.com
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Responsibility Report
Agricultural Commodities
Kraft Foods is a major supporter of twop og ams in Af ica fo cocoa and cashe s programs in Africa for cocoa and cashews Co-funded by the Bill & Melinda Gates FoundationHelp increase farmer incomes by improving:
Productivity & yield at the farm level Supply chain efficiencyCrop selection, marketing & added value
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Agricultural Commodities
Since 2003, we’ve collaborated with the Rainforest Alliance to provide coffee consumers with high-quality coffee that has been farmed in a coffee consumers with high quality coffee that has been farmed in a sustainable way
In 2009, we were the largest buyer of Rainforest Alliancecoffee and cocoa beans worldwide
Committed to expand to all of Cote d’Or and Marabouh l t d t
~34,000MT coffee in ‘09 7 100MT cocoa in ‘09
chocolate products
~ 7,100MT cocoa in ‘09
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Agricultural Commodities
In 2009 Cadbury Fairtrade launched FairtradeIn 2009 Cadbury Fairtrade launched FairtradeCadbury Dairy Milk in the UK and has expanded to Australia, New Zealand, Canada, and South Africa
Recent public commitment to expand to Recent public commitment to expand to Green & Black’s, which is already organic
Combined Rainforest Alliance & FairTrade: Products in more than 15 brands in the Kraft Foods family currently use these seals
Packaging
1MM lb Reduction More Efficient Design
.7MM lb ReductionSourcing Sustainably
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TerraCycle takes non-recyclable packaging & finds a new use for it
• Kraft is the largest sponsor of TerraCycle brigades– Nearly 40,000 brigade locations and millions of people collecting
Swaste across USA– Kraft Foods is supporting in Canada, Brazil, Mexico and UK.
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Energy
Turning Wastewater into EnergyAnaerobic digestion at our Campbell and Lowville NY Anaerobic digestion at our Campbell and Lowville, NY facilities produces bio-gas
Replaces 30% of the facilities’ fossil fuel needs
Lowville, NY
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Campbell, NY
Reducing our energy use
Distribution Center
• Underground warehouse leverages geothermal
Springfield, MO
• Underground warehouse leverages geothermal
• 65% less energy than conventional warehouse
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Transportation & Distribution
Eliminates 4MM lbs of CO2!!
Delivering wheat by ships24 ships/yr
1.7MM lbs CO2
Delivering wheat by shipsinstead of trucks
10,200 trucks/yr5.7MM lbs CO2
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Supply-Chain Related Projects
• We are a member of PROGRESS (Programme for Responsible So cing)Responsible Sourcing)– A forum of leading brand producers of Fast Moving Consumer
Goods (FMCG) companies who wish to develop and implement th d f l ti th CSR f f th i common methods of evaluating the CSR performance of their
suppliers – Evaluates suppliers on 4 pillars:
E i t• Environment• Health & Safety• Labor Standards• Business Integrity• Business Integrity
– Each member of PROGRESS independently evaluates questionnaire and audit results
Recognition
• Dow Jones– North America Index for the sixth year in a rowNorth America Index for the sixth year in a row– World Index for fifth year in a row– 2010:
• Food industry’s leading scores in operational eco efficiency for a • Food industry s leading scores in operational eco-efficiency for a third year in a row
• Leading scores in innovation management, codes of conduct/compliance and corporate citizenship/philanthropyp p p p py
• Carbon Disclosure Project– Since 2005 have participated, when started reporting Scope 1
d S 2 i i and Scope 2 emissions – In 2009, started reporting on a portion of Scope 3, getting
more refinement each year– In 2010, made the Carbon Disclosure Leadership Index for the
first time