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 In uncertain times it is hard to predict the changes ahead. But according to a hall full of industry leaders in October 2008 – at the height of stock market volatility, rising unemployment and roller-coaster oil prices – it looks like the focus on sustainability is here to stay.
At IGD’s flagship Convention more than 500 chairmen, directors and senior managers from the food and grocery industry were asked for their view of sustainability in the economic downturn, and the results were encouraging.
Given the economic downturn, which of the following statements
best describes your current view of sustainability?
Industry understands what needs to be done
Nearly half (48%) of the respondents understood that sustainability is a journey, not a destination, and that it requires them to commit to the long term regardless of economic conditions. One in ten (10%) actually saw the economic downturn as a catalyst to the improvement of sustainability, agreeing with the statement that ‘events have proven that it’s more critical than ever.’
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The industry understands what needs to be done | |
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The Convention chairman, Michael Buerk, proclaimed the audience as a group of optimists, but with the industry making so many long term pledges regarding waste reduction, CO2e (CO2 equivalent) emissions, water management and better social standards, what it really shows is that the industry is dedicated and understands what is required.
With operation costs staying high and demand for goods and products increasing it is not surprising that 30% believed the emphasis needed to move towards resource efficiency.
Oil reserves are continually being depleted while the global population continues to grow. This supply versus demand issue is going to increase the need for better resource management and efficiency, and will result in two major challenges:
- The need to feed a growing population that is becoming more affluent
- Securing finite resources, while moving towards a low carbon economy
The industry is currently aiming to tackle these challenging issues and many more through innovative programmes and increased best practice.
Committed to the cause
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Industry packaging targets
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Asda
25% packaging reduction target for own label food products by 2008.
Marks & Spencer
25% reduction in non-glass packaging by 2012.
Sainsbury's
5% overall packaging reduction target by 2008 and a 25% packaging reduction target for fresh produce by May 2008.
Tesco
25% reduction across all packaging including brand and own label by 2010. |
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Source: Wrap |
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Over the last few years the food and grocery industry has placed itself at the vanguard of the sustainability agenda. It would be fair to say no other business sector has done as much or pledged to do more.
In the retail sector, a number of UK supermarkets are already implementing initiatives to reduce carbon emissions across their estate.
Marks and Spencer aims to become carbon neutral by 2012 by investing in a number of activities. Between January 2007 and January 2008 it reduced energy related CO2 from stores and offices by 55,000 tonnes, by switching an additional 23% of their electricity to renewable sources.
Tesco has also set targets to reduce their CO2 emissions. They will ensure that all new stores built between now and 2020 will emit, on average, at least 50% less carbon than an equivalent store built in 2006. They have also committed to assessing the carbon footprint of every one of the 70,000 products they sell, as well as labelling products with the result.
Manufacturers are making equally impressive pledges and reductions. Since 1997 Nestlé has cut its water consumption by 29% and reduced energy usage by 3% while increasing production volume by 76% between 1998 to 2007. They have also been working with the charity FareShare to redistribute surplus food to communities who need it most. This project has reduced surplus going to landfill and provided nearly 200,000 meals.
Unilever's Small and Mighty concentrate detergent is another example of the industry’s commitment to sustainability. The new product helps the environment by using 40% less packaging compared to other dilute counterparts - saving resources and being lighter, it reduces emissions from transportation. At the 2008 IGD Convention, P&G announced the imminent arrival of a similar Ariel range.
Read our Small and Mighty case study
The Cadbury Purple Goes Green initiative launched in July 2007 set a 2020 vision for their company to tackle climate change.
Read our cadbury purple goes green case study
From the pledges made, progress to date and the poll taken at IGD’s Convention, sustainability is definitely not a flash in the pan idea. It is clear that the food and grocery industry still has its sights fixed on the sustainability agenda and has set itself some challenging and inspirational future targets.
What help is available?
IGD produces a wide range of resources on sustainability in the food and grocery industry.
Please visit IGD's free Sustainability web-area for further information and to view best practice examples from the industry click here
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Global population to reach 9 billion by 2050.
