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Sustainable Supply Chain Benchmark: Food Sector

Date: 02 July 2012

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35 pages, 17 figures

Executive Summary

Over the past two years, the complex task of creating a sustainable supply chain has become an area of increased activity within corporate sustainability. This report helps Chief Sustainability Officers, Chief Procurement Officers and Heads of Sustainable Sourcing benchmark their targets, content of their codes of conduct, and initiatives. Verdantix has benchmarked the sustainable supply chain strategies of the twelve largest global food firms, including ConAgra Foods, PepsiCo and Unilever. Their aggregate revenues stand at $390 billion. While all strategies are advancing on environmental standards and criteria, Verdantix identifies and characterizes three types of sustainable supply chain strategies: leading strategies take a long-term approach motivated by resource scarcity and work on environmental performance with their suppliers; opportunistic approaches are motivated by brand and reputational benefits; and baseline sustainable supply chain programmes take a more reactive approach, responding to the media attention surrounding deforestation and supplier working conditions.

TABLE OF CONTENTS

VERDANTIX UNRAVELS SUSTAINABLE SUPPLY CHAIN COMPLEXITY
Abundant Drivers For Supply Chain Sustainability Programmes Verdantix Benchmarks Sustainability Of Global Food Sector Supply Chains

BENCHMARK REVEALS GAP BETWEEN PROACTIVE AND REACTIVE APPROACHES

Leadership Strategies Take A Long-Term Approach To Sustaining Supply
Brand Benefits Motivate Opportunistic Approaches
Deforestation And Working Conditions Trigger Action Across The Board


BENCHMARK: FOOD SECTOR SUSTAINABLE SUPPLY CHAIN STRATEGIES

TABLE OF FIGURES

Figure 1. Food Sector Supply Chain From Raw Materials To Retail
Figure 2. Verdantix Defines Six Sustainable Supply Chain Initiative Categories
Figure 3. Sustainability Issues Covered By Minimum Standards For Suppliers
Figure 4. Sustainable Supply Chain Targets In The Food Sector
Figure 5. Characteristics Of Three Sustainable Supply Chain Strategies
Figure 6. ABF Sustainable Supply Chain Targets, Supplier Standards And Initiatives
Figure 7. ConAgra Foods Sustainable Supply Chain Targets, Supplier Standards And Initiatives
Figure 8. Danone Sustainable Supply Chain Targets, Supplier Standards And Initiatives
Figure 9. General Mills Sustainable Supply Chain Targets, Supplier Standards And Initiatives
Figure 10. Heinz Sustainable Supply Chain Targets, Supplier Standards And Initiatives
Figure 11. Kellogg Sustainable Supply Chain Targets, Supplier Standards And Initiatives
Figure 12. Kraft Sustainable Supply Chain Targets, Supplier Standards And Initiatives
Figure 13. Mars Sustainable Supply Chain Targets, Supplier Standards And Initiatives
Figure 14. Nestlé Sustainable Supply Chain Targets, Supplier Standards And Initiatives
Figure 15. PepsiCo Sustainable Supply Chain Targets, Supplier Standards And Initiatives
Figure 16. Sara Lee Sustainable Supply Chain Targets, Supplier Standards And Initiatives
Figure 17. Unilever Sustainable Supply Chain Targets, Supplier Standards And Initiatives

ORGANIZATIONS MENTIONED

AIM-PROGRESS, Apple, Associated British Foods, Ben & Jerry’s, Bureau Veritas, Burger King, Cadbury, Cargill, Carrefour, CDP, Coca-Cola Company, ConAgra Foods, Consumer Goods Forum, Co-operative Group, Danone, De Ruijter, Diageo, Douwe Egberts, Enablon, Ethical Tea Partnership, Fairtrade Foundation, Fair Labor Association, Forest Footprint Disclosure Project, Foxconn, General Mills, Golden Agri Resources, GreenPalm, Greenpeace, GRI, Heinz, Hershey, IBM, International Labor Organization, Lamb Weston, Lipton, Ilovo, Intertek, JBS, Kellogg, Keystone Alliance For Sustainable Agriculture, Knorr, Kraft, Maplecroft, Marine Stewardship Council, Marks & Spencer, Mars, Muddy Boots Software, Nestlé, Nike, PepsiCo, Pickwick Tea, Quantis, Rainforest Alliance, Reebok, Roundtable on Responsible Soy, Roundtable on Sustainable Palm Oil, SAP, Sara Lee, Sedex, SGS, Sinar Mas, Sustainable Agriculture Initiative, Sustainable Food Lab, Tesco, Tropicana, Twinings Ovaltine, Unilever, University of Aberdeen, US Department of Agriculture, UTZ CERTIFIED, Walkers, Walmart, WWF