Corporate Profiles - 2024 - 47

MOST POPULAR SUSTAINABLE BEHAVIORS IN THE PAST YEAR, 2024
Base: 10,000 internet users aged 16+/18+; June 2024
DO YOU CONSIDER ENVIRONMENTAL IMPACTS WHEN MAKING
A PURCHASE DECISION?
Recylced packaging (personally or at a store)
Reduced the energy I use in cooking
Bought fewer new clothes
Bought products certified to protect/pay fair wages to workers (eg Fair ...)
Bought products certified as less harmful to environment (eg Fsc)
Bought a product as a refill
Hired or leased a product instead of buying it (eg DIY tool)
Switched to electricity/gas supplier using only renewable energy
Bought a used/repurposed tech product instead of a new one
Source: Mintel Global Oulook on Sustainability: A Consumer Study 2024-25.
Moines, Iowa-based company said the practices allow it to use less land,
water and other inputs.
Upcycling, or using ingredients in food that otherwise would not be
used for human consumption, is another sustainability practice that can
reduce food waste and enhance product marketing. One example is
Ocean Spray Ingredients, which is upcycling cranberry seeds from fruit
processing for other food uses.
" They are a beautiful red color, full of fiber, contain omega-3 and -6
fatty acids and protein, " Katy Galle, senior vice president of research,
development and sustainability, told Food Business News. " They provide
a healthy and colorful ingredient, especially to baking items. "
Progress is being made, yet CPG companies still face challenges
when it comes to meeting sustainability goals. For one, there is no
widely accepted definition of " sustainable practices " for companies or
consumers to follow.
Since 1992, the US Federal Trade Commission has published " Green
Guides " to help CPG companies guard against " greenwashing, " or making
unqualified environmental claims about products that may confuse
or mislead consumers. Product claims such as " green, " " natural " or " ecofriendly "
can be costly to a brand's reputation and prompt legal action.
The FTC has updated the guides several times, with the most recent
update in 2012 adding guidance on product certifications and seals of
approval, claims about " renewable " materials and energy sources and
" carbon offset " claims.
As more consumers become wary of greenwashing, they may avoid
purchasing products from CPG companies making deceptive sustainability
claims. Such companies also may run afoul of government regulations.
In 2022, Keurig Canada paid a $3 million fine following a Canadian
government investigation to resolve false or misleading environmental
claims about the recyclability of its K-Cup pods. Other CPG companies
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10%
13%
18%
18%
22%
33%
33%
43%
62%
21%
37%
36%
24%
42%
50%
41%
37%
49%
35%
21%
8%
2019
16%
6%
2020
Always/nearly always
15%
11%
2021
Sometimes
19%
8%
2022
Rarely
16%
7%
2023
Never
Source: Kearney March 2023, 2022, 2021, 2020 and 2019 US Consumer Surveys
accused of greenwashing include Unilever, Oatly, Coca-Cola and Nestle.
Forty percent of US consumers don't trust companies to be honest
about their environmental impact, according to 2023 data from Mintel.
To help inform consumers and potentially counter that distrust, CPG
companies are regularly issuing reports about their sustainability progress.
The
latest sustainability report from Mars, Inc. said the company is on
track to achieve its 2025 greenhouse gas emission-reduction goal. The
Ferrero Group's most recent sustainability report said the company had
increased traceability and recycling capabilities while reducing water
use in the fiscal year ended Aug. 31, 2023.
Just as they do with other investments, CPG companies weigh the return
on investment (ROI) of sustainability efforts. To assist, NYU's Stern
Center produced a Return on Sustainability Investment (ROSI) methodology
to connect sustainability efforts with financial outcomes to make
a stronger business case.
The methodology includes five steps to quantify the ROI of sustainable
business initiatives. They are: ensure existing sustainability initiatives
align with the company's significant issues, assess practices that
are put in place, document positive outcomes, measure the financial
value of benefits and determine the total financial value.
Tensie Whelan, director of the Stern center, told the Thomson Reuters
Institute in July it's critical to have " visible ownership of sustainability " at
the top levels of a company's leadership, and management and boards
of directors should talk about adopting a sustainability strategy and key
performance metrics inspired by the ROSI methodology.
Boards of directors already are being held accountable for greenwashing
and for inaction on material negative impacts, she added, but
more progress is needed so board members can demonstrate sufficient
expertise in sustainability. CP
Milling & Baking News * Food Business News * Baking & Snack * Meat+Poultry * Dairy Processing * Pet Food Processing
October 2024 / 47

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