Strategic Management and Sustainability #33
Corporate sustainability ☼. Embracing the “nature-positive” trend
In today's newsletter we continue with the corporate sustainability topic and show some companies that have stated that they want to adopt the "net - whatever - positive" trend, be it water, reforestation, energy ...
The “Nature-positive” trend, according to the WEF would go beyond the damage limitation. “What if our economic activities not only minimize impact, but also enhance ecosystems?” This cannot mean that companies and countries can “destroy nature in one place and restore it in another”.
The following companies are mentioned:
PepsiCo and its Pep+ plans to improve its agricultural, carbon and water footprints among other initiatives. By Vanessa Zhu Zhu
Nespresso and “The Positive Cup” with net-zero emissions, regenerative coffee production, eco-design, recycling, etc. By Alessio Treggiari
Starbucks and its commitment to become a resource-positive company. By Francesca Malaguti.
IKEA wants to become “circular and climate positive, and regenerate resources while growing the IKEA business”. By Maria Giulia Armentano
Enjoy reading,
Gloria Álvarez Hernández
Today's newsletter is 1212 words, about a 5.5-minute read.
How is PepsiCo using sustainability to innovate for people and the planet?
Vanessa Zhu Zhu
In October 2021, PepsiCo launched an initiative called the pep+, a “strategic end-to-end transformation” to create growth through positive change. To ensure sustainability, the company is addressing environmental and social issues to secure support for the planet and its people. PepsiCo places emphasis on engaging all external stakeholders in the initiative to create positive solutions across the entire value chain.
The pep+ initiative revolves around three key pillars that are joined together to form a framework bound together under various time goals. The three pillars are:
Positive Agriculture: As the main products of the company revolve around agriculture, it places major emphasis on the support of the transition to regenerative agriculture. PepsiCo aims to manage this transition across its entire agricultural footprint, which is equal to approximately seven million acres. Moreover, it plans to improve the livelihood of more than a quarter of a million people who work in its agricultural supply chain. In fact, an initial pilot to convert potato waste into a fertiliser, resulted in a 70% emission reduction in the UK.
Positive Value Chain: PepsiCo aims to achieve net-zero emissions by 2040, as well as become net water positive by 2030. Additionally, the company wants to focus on innovating its packaging in order to cut virgin plastic by 50% by 2030. Progress has been made in European markets, but still much change is needed in more developing countries. For example, recently Denmark and Finland have joined 9 other European markets to switch to 100% recycled plastic bottles by 2022.
Positive Choices: With the pep+ initiative, PepsiCo wants to offer their consumers more sustainable choices. By investing in product innovation, the company wants to incorporate more diverse ingredients into its existing products, such as chickpeas, plant-based proteins and wholegrains. Reformulating its snacks by reducing added sugars and sodium plays an important role to help improve its snack on the Nutri-Score scale.
Source:
foodnavigator.com. (2021, October 6). How PepsiCo is ‘fundamentally transforming’ what it does and how it does it. https://www.foodnavigator.com/Article/2021/10/06/How-PepsiCo-is-fundamentally-transforming-what-it-does-and-how-it-does-it#
NESPRESSO'S CLIMATE COMMITMENT
Alessio Treggiari
At Nespresso, sustainably doing business is about much more than a desire to do the right thing. It's a matter of life and death for them. They can only secure the sustained supply of outstanding coffee in every cup to consumers – and thus the continued success of our business – by delivering long-term sound effects to farmers, society, and the environment.
"The Positive Cup" is their sustainability approach, and it underscores how the Nespresso model creates shared value.
Businesses that integrate sustainability matters into their company strategy will be the ones who succeed in the future. As a coffee industry leader, their approach exemplifies the concept that every cup of coffee can have a beneficial influence since every cup of coffee has a carbon footprint that is the consequence of all the actions carried out during its lifecycle – from farm to end-of-life.
Nespresso's climate strategy has been focused on finding solutions that reduce GHG emissions from various activities across this lifespan since 2009. Their primary focus has been on operations that have large-scale consequences, both within and outside of their direct control. These initiatives have resulted in a reduction in the carbon footprint of a Nespresso cup of coffee, from machine energy efficiencies to renewable energy, farming methods, to recycling.
They aspire to reach net-zero GHG emissions by 2050 at the earliest through regenerative coffee production, eco-design, the use of renewable energy, recycling, logistical optimization, tree planting, and reforestation, so contributing to a low-carbon and nature-positive economy.
Source:
Climate commitment. (n.d.). Nespresso. Retrieved December 9, 2021, from
Sustainability at IKEA
Maria Giulia Armentano
IKEA is collaborating with partners, employees, and customers to take important steps in the path of sustainable development.
The company has some ambitious goals for 2030:
“Inspire and enable more than 1 billion people to live a better everyday life within the boundaries of the planet”
“Become circular and climate positive, and regenerate resources while growing the IKEA business”
“Create a positive social impact for everyone across the IKEA value chain”
The company says that even though 2020 was a tough and challenging year, they made good progress using sustainable materials, plant-based foods, renewable energy and more.
They will continue to create positive change and pursue their goal of becoming climate positive by 2030.
🎥 IKEA sustainability report FY20 highlights:
STARBUCKS SUSTAINABILITY COMMITMENT
Francesca Malaguti
In 2020 Starbucks announced its commitment to become a resource-positive company. They formalized environmental goals to cut its carbon, water, and waste footprints by half. Furthermore, they committed to carbon-neutral green coffee and conserving water usage in green coffee processing by 50%, both by 2030.
Starbucks is the dominating power in the specialty coffee industry, and they use their market power to implement social change in their supply chain through Coffee and Farmer Equity practices (C.A.F.E.). This is a way to ensure a high-quality supply of sustainable coffee beans which is an essential part of Starbucks’ business. This initiative built mutually beneficial relationships with coffee farmers and their communities.
The main objectives of C.A.F.E. practices are increasing economic, social, and environmental sustainability in the coffee industry, encouraging their suppliers to adopt these practices through monetary incentives, building mutually beneficial relationships with their suppliers, and promoting transparency and economic fairness within the coffee supply chain.
Beyond the dedication to a sustainable supply chain, Starbucks is a leader in the reduction of greenhouse gas emissions. Upon recognizing that the retail stores were the worst creators of greenhouse gas emissions and consumed the most energy, the company dedicated time and effort to reduce its overall footprint. Programs such as retail and commercial recycling, LED bulb replacement, reduced water consumption, and reward programs for customers who use reusable cups, prove that the company has adopted sustainability as a part of its business model and strategy.
Sources:
Calma, J. (2020, January 21). Starbucks sets new sustainability goals for the decade. The Verge. Retrieved November 28, 2021, from https://www.theverge.com/2020/1/21/21075852/starbucks-sustainability-goals-waste-water-greenhouse-gases-decade
Duda, S., et. al. Starbucks Corporation building a Sustainable Supply Chain. Stanford Graduate School of Business. Retrieved November 28, 2021, from https://www.gsb.stanford.edu/faculty-research/case-studies/starbucks-corporation-building-sustainable-supply-chain