use sustainabilityreport ldfinal 11.6.2012

7/30/2019 USE SustainabilityReport LDFINAL 11.6.2012

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ENVIRONMENTALSUSTAINABILITY VISION

TOWARDS 2030Achievements, Challenes and Opportunities


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2 FoodDrinkEurope l Acvs, Cas a Oos

ENVIRONMENTAL SUSTAINABILITY VISION TOWARDS 2030


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Acvs, Cas a Oos l FoodDrinkEurope 3

ENVIRONMENTALSUSTAINABILITY VISION

TOWARDS 2030Achievements, Challenes and Opportunities


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CONTENTSForeword 06

A word rom the Commissioner 08

Executive summary 10

Challenges, environmental perormance and uture vision or 2030 12

Vision 14

Sustainable sourcing 16

Resource Eciency 26

- Energy & Climate Change 28

- Water 36

- Waste 44

Packaging 52

Transport & distribution 60

Consumers 68

Opportunities 78

Conclusion 82

Reerences 84

About FoodDrinkEurope 86


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FOREWORD


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Europes rst manuacturing sector, the ood and drink industry, puts sustainable growth at the heart o its business model.It does so not only because it makes good business sense but also because o the unique relationship that industry has withthe environment, on which it relies or a continuous, adequate supply o sae, high quality raw materials rom which to make

world-renowned ood and drink products. Ensuring green growth, thereore, not only helps saeguard the earths limitednatural resources but also secures the long-term competitiveness and prosperity o Europes ood and drink industry.

It is or these reasons that Europes ood and drink industry is investing in its uture and that o Europes 500 million citizensto promote smart, green growth, through the adoption o a FoodDrinkEurope Environmental Sustainability Vision towards2030, underpinned by a set o steps needed or its accomplishment. The Vision is the result o a broad collaborative worktogether with other stakeholders along the supply chain, governments, civil society, research and academia. It goes someway to ensuring that the eorts o Europes ood business operators to meet the tall challenges and expectations o society regulators, academics and partners along the chain, including consumers can be met i we are to make headway insecuring the sustainable uture o both our industry, and o course, o the planet.

Yet, the adoption o this Vision or 2030 is not the beginning o the industrys eorts in this area. Food manuacturers havecome a long way already in a relatively short space o time. Since the publication o the last FoodDrinkEurope EnvironmentalSustainability Report in 2008, an increasing number o companies -large and small- have continued to step up their eortsto implement sustainable practices in their own business operations and via collaborative activities with other stakeholdersacross the supply chain rom ensuring sustainable sourcing o raw materials to promoting greater resource eciencyand to championing sustainable production and consumption. This is a signicant achievement or the industry, not leastbecause o its highly ragmented nature with 99% o the number o companies either small or medium in size.

In this report, you will read an array o best practice examples rom ood operators in the areas mentioned above. It is thelatter, sustainable consumption and production, on which I would like to ocus. Food operators are ully committed to playingtheir part in doing business more sustainably. But, as is the case when ood is wasted in the household, the eorts madethroughout the supply chain to produce that ood sustainably, are also then wasted i consumers are not more aware o theadverse eect that this has on the environment. Hence, the eorts o all actors in society are needed i we want to deliver agreener economy and better world or generations to come.

An excellent example o a successul initiative in this area is the European Food Sustainable Consumption andProduction Round Table, a ground-breaking multi-stakeholder platorm launched in 2009, initiated by FoodDrinkEuropeand co-chaired by the European Commission, in conjunction with other actors, gathering together ood chain partners,

policy-makers and civil society to collaborate on environmental sustainability issues or the rst time. The Round Tablehas made a number o landmark achievements already in its brie existence rom agreeing on a set o guidelines orthe environmental impact assessment o ood and drink products throughout their entire product lie-cycle, to how tocommunicate this inormation along the chain, including to the consumer.

As the example above makes clear, increasingly, whole o society eorts are needed to ensure sustainable growth both inEurope and beyond, with each actor playing his respective part. In doing so, together, we can demonstrate that the triplewin o sustainability across the social, environmental and economic pillars which orm its basis- is not only achievable butalso a legacy that this generation can be proud o.

Jess Seran PrezFoodDrinkEurope President


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A WORD

FROM THECOMMISSIONER


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Food and drink play a undamental role in our daily lives - but eeding the growing world in the long term willonly be possible i the way we produce and consume ood is changed. Production and consumption o ood isone o the major users o our planets resources, and these resources, which we once considered as unlimited,are now clearly under increasing stress. Clean air and water, high quality land and soil, and the biodiversity andclimate that support the whole ood system, must be properly valued and used as eciently as possible.It is or this reason that ood was highlighted as one o the three priority areas in the Commissions Roadmapto a Resource Ecient Europe alongside mobility and housing.We are pleased to see that the environmental sustainability vision or 2030 comes to similar conclusionswith the strategic priorities o sustainable sourcing, resource eciency along the ood chain and sustainableconsumption. One o the key priorities is also to tackle ood waste when ood is wasted the resources thatwere invested into its production are also wasted.

Action by ood and drink manuacturers alone is not enough. Food chain partners must work together to

address ood sustainability and tackle the adverse environmental impacts o ood and drink products thatoccur all along the chain. A chie example is the multi-stakeholder initiative, the European Food SustainableConsumption and Production Round Table, gathering European ood chain partners, policymakers and civilsociety to collaborate on environmental sustainability or the rst time.

The ood industry should help in giving greater value to ecosystem services on which its industry itsel depends.Maintaining biological diversity should be one o the main priorities as this is essential to sustainable oodproduction.

While it is not a solution in itsel, consumer inormation can play a major role. Consumers need to be awareo the environmental impacts o their choices and their own activities related to ood, such as shopping andcooking. However, in order to be credible, consumer inormation must be scientically reliable, understandable

and not misleading. It is in the direct interest o the ood sector so that those that really invest resources inimproving their impacts are rewarded or their eorts; that they are not dismissed as green washing. It is alsoclear that consumers should be increasingly inormed via modern communication channels, such as smartphones applications and social media.

The European Food Sustainable Consumption and Production Round Table has been successul in workingtowards this objective by delivering a report on the use o communication tools or environmental inormationand developing the Enviood Protocol that should complement existing international standards. Now this goodwork has to be taken to the next step, and implemented in real actions on the ground that ensure consumersare given accurate inormation about the sustainability o the choices they make.Due to the complexity o the ood chain and ood production, the social and economic aspects, such as dietaryissues and international development, it is essential that all interested parties are involved in delivering holistic

solutions. It is a positive aspect o the report that it starts this process, and the Commission will ollow the samepath when developing its Communication on Sustainable Food that will set out the long-term EU strategy or ood.

Janez PotocnikEuropean Commissioner or Environment


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To address the big challenges o securing smart, green growth on the path towards a greener economy both inEurope and globally, urther eorts are needed to decouple economic growth rom resource use and adverseimpacts on the environment. Europes ood industry must ensure, also, that as it addresses these challenges,it does not compromise ood saety, quality, nutrition and health, while at the same time, satisying consumerdemand. To meet these objectives, FoodDrinkEuropes Environmental Sustainability Vision or 2030 includes aset o key actions detailing commitments across three core areas:

1. Sustainable sourcing;

2. Resource eciency; and

3. Sustainable consumption and production.

Enclosed in this report are a host o examples rom industry players - large and small - which illustrate how

Europes ood and drink industry is addressing environmental sustainability. FoodDrinkEurope members havehighlighted key achievements on which the industry can continue to build its eorts, in a number o priorityareas. Case studies and examples in each chapter demonstrate how ood and drink companies o all sizes andindividual sectors are striving to improve their environmental perormance regardless o the multitude o dierentraw materials, products, processes, activities and local economic and environmental conditions that they ace.

SuStainable SourcingEuropes ood and drink industry purchases 70% o EU agricultural produce; it is thus crucial or the long-termhealth and prosperity o the industry that arming systems are sustainable and that biodiversity loss is prevented.Signicant steps have been taken to improve the sustainable supply o key commodities with the development

o many new initiatives and schemes in recent years, which, increasingly, adopt a more holistic approach tosustainability. Many companies are integrating sustainable sourcing into their overall business strategy, productdesign and corporate policy too.

energy & climate changeFood and drink manuacturers have made signicant investments to improve their energy perormance andto reduce greenhouse gas emissions (GHG). Between 1999-2008, the industry cut its GHG emissions by18% while production value increased by 29%. Increasingly, by-products and waste are used as a source orenewable energy and investments in low carbon technologies, such as Combined Heat and Power (CHP),are contributing to urther emission reductions. The sector is also switching to alternative rerigerants as they

become technically and economically viable, sae and energy ecient.

WaterEuropes ood and drink industry accounts or approximately 1.8% o Europes total water use. In light o theanticipated increase in demand or water worldwide, signicant eorts have been made to work with ood chainpartners to improve water management as well as waste water quality and water recovery and re-use. Foodoperators are also involved in various multi-stakeholder initiatives to address water use throughout the entirelie-cycle o a product, in addition to water disclosure and voluntary water stewardship. Moreover, manuacturershave reduced water use on-site on a voluntary basis by employing tools to measure water use, adoptingwater management practices and investing in water-ecient technology. As a result, the industry is achieving

measurable water reduction and cost savings.

ExECUTIVE SUMMARY


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WaSteAddressing waste and, in particular, ood waste, is a top priority or the ood sector given that when a ood iswasted, the resources that were invested in its production are also wasted. At EU level, annual ood waste isestimated at a total o 90 million tonnes. Manuacturers are constantly striving to use 100% o the agriculturalresources they put into ood production and are increasingly nding uses or by-products not only as ood, butalso as animal eed, ertilisers, cosmetics, lubricants and pharmaceuticals, amongst others. In addition, re-use,recycling and recovery by producing bioenergy rom waste, are key methods or the industry to achieve optimalraw material utilisation and waste management. In addition, numerous ood and drink companies are makingcommitments aiming or zero waste to landll within the coming years.

PackagingThe ood industry is increasingly using eco-design tools to optimise the environmental perormance o productsand packaging and is turning to reusable packaging solutions wherever environmentally benecial andeasible. At the same time, packaging recycling rates have risen considerably over the past number o years.FoodDrinkEurope members have committed to producer responsibility recycling and recovery schemes in EUMember States where they have been introduced. In 2009, about 32 million tonnes o used packaging wererecovered by these schemes in Europe. Manuacturers are working continuously with the packaging industryto develop innovative packaging materials with improved environmental impacts, while maintaining productprotection and preservation.

tranSPort & DiStributionTransport plays a vital role in the supply and distribution chains or Europes ood manuacturers. As a pillar othe EU economy, the ood industry is an important user o dierent modes o transport, in particular, HeavyGoods Vehicles (HGV). The sector is actively seeking to enhance and reduce the adverse environmental impacto transport through collaboration with transport and distribution providers, to improve eciencies in productsourcing, modal shits, distribution networks, route planning and vehicle choice.

conSumerSFood and drink products are a undamental part o the daily lives o Europes 500 million citizens, providingnutrition, health, well-being and enjoyment. As such, consumers are at the heart o how the ood industryoperates, in responding to ever-evolving consumer demand and liestyles (pack sizes, smart packaging to

preserve ood or longer, etc.). Nonetheless, consumers generate signicant direct environmental impactsin the way they transport, store, prepare and dispose o ood and there is a need or scientically-reliableand harmonised analyses setting out where improvements in the ood chain, including at the householdstage, can be made. A key achievement o the European ood and drink industry is the development o aharmonised assessment methodology or the environmental impact o ood and drink products, the Protocolor the Environmental Assessment o Food and Drink. This Protocol is a key deliverable o the European FoodSustainable Consumption and Production (SCP) Round Table and has been developed in collaboration with theEuropean Commission and ood chain partners, NGOs, academia and national experts. The Round Table hasalso developed recommendations on the use o tools or communicating environmental inormation, including tothe consumer. The Recommendations highlight good practice and key tools that may be used to communicateenvironmental inormation, while recognising that to do so eectively, requires the use o a multi-prongedapproach. Moreover, many ood companies already provide voluntary inormation to consumers about the

environmental perormance o their products through various communication channels.


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Challenes,environmental

perormance anduture vision or 2030

Forecasts or 2030: The Challenes

50%An increase o 50%in ood supplies willbe needed globally1

50%Global demand orenergy is expectedto increase by 50%2

40%Global demand orwater is expected toincrease by 40%3

40%Freight transportlevels in the EU areexpected to increaseby 40% on those o20054


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The European ood and drink industrys environmentalperormance: State o play

5.3%Food and drinkmanuacturersaccount or 5.3%o industrial nalenergy use globally5

18%European ood anddrink manuacturershave cut their GHGemissions by 18%between 1999 and2008, while increasingtheir production value

by 29% over the sameperiod6

1.8%Food and drinkmanuacturersaccount or1.8% o totalwater use inthe EU7

5%The ood anddrink industryaccounts or5% o overall oodwaste generatedin the EU (Note:excluding

agriculture)8

20%-30%Food and drinkproducts account orapproximately 20-30% othe overall environmentalimpacts o consumptionin the EU 279

The European ood and drink industry will ace signicant challenges due to anexpected global population o 8 billion by 2030. The gures outlined below highlightthese challenges as well as the industrys environmental perormance to date.This has enabled FoodDrinkEurope to identiy a 2030 vision and actions or howthe industry can take the lead to address environmental sustainability into the uture.


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VsoLeadin the way to 2030The European ood and drink industry is a responsible, constructive leader in addressing the economic, social andenvironmental pillars o sustainability with a lie-cycle approach.

The European ood and drink industry is a leader in the global transition towards a green economy through ourcommitment to use low-carbon and resource ecient solutions as well as to promote sustainable patterns

o production and consumption in partnership with stakeholders.The ood industry aims to decouple growth rom adverse environmental impacts and resource use withoutcompromising on ood saety, quality, nutrition or health, whilst at the same time satisying consumer demand.

In the area o sustainable sourcing, FoodDrinkEuropes members:

Embed and promote sustainable sourcing in the supply chain and strive or a common understanding othe term with ood chain partners and other stakeholders.Make a positive contribution to ood security and environmental sustainability both within and beyondEurope.Identiy and tackle environmental hotspots through continuous interaction and long-term contractual

relationships with suppliers.

In the area o resource eciency, FoodDrinkEuropes members:

Promote lie-cycle thinking in how they do business as ood and drink manuacturers, and look beyondoperations to improve resource eciency along the ood chain.Achieve more sustainable production methods using technological breakthroughs, increased R&Dand innovation.Reduce waste and use natural resources more eciently, not only as ood producers but also asresponsible and innovative managers o inputs or other industries.

In the area o sustainable consumption, FoodDrinkEuropes members:

Enhance interaction with all stakeholders through new communication technologies, tools and channels.As a result, consumers are more environmentally aware and consider how ood ts in with their values(e.g. health, sustainability, budget, liestyle and social concerns) in a more holistic way.Ensure environmental sustainability considerations and lie-cycle thinking are embedded in ood and drinkproduct designs.


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Actions:

In order to implement the industrys Environmental Sustainability Vision or 2030, the European ood and drinksector commits to take the ollowing steps:

FoodDrinkEurope will continue to actively engage in the European Food Sustainable Consumption andProduction Round Table to promote the harmonisation o environmental assessment methodologies or

ood and drink products, acilitate the communication o environmental perormance along the ood chain,including to consumers, and identiy priority research programmes and opportunities or technical innovationto support continuous environmental improvement along the supply chain.

Sustainable sourcing

The industry will work with stakeholders, most notably, ood chain partners, to mainstream sustainablesourcing by establishing guiding principles or sustainable sourcing, encouraging harmonisation andextending the coverage o certication schemes, acilitating sustainable sourcing or small and medium-sizedenterprises (SMEs), and providing assistance to armers or the uptake o sustainable sourcing.

Resource eciency

Reconciling agendas, such as the use o ood crop-based uels and other industrial uses o agricultural raw

materials, is a key challenge at a time o population growth. The industry will engage with policymakers, oodchain partners and other stakeholders to move towards an integrated approach with particular attention onthe availability o agricultural raw materials or the production o ood and eed.The industry will continue to acilitate exchange obest practices among operators, particularly amongSMEs.The industry will promote closed loop supply chains and work with supply chain partners to improveenvironmental impacts along the chain.The industry will encourage a common research and innovation agenda to develop solutions to keyenvironmental hotspots in our operations. Hotspots shall be addressed at the most appropriate level(e.g. European, sectoral, local, sub-sectoral, company level).The industry will initiate a ood chain approach to address water impacts and support the developmento a common water toolkit.The industry will work with ood chain and other stakeholders, policymakers, retailers and consumer

organisations, to reduce and, where possible, avoid ood waste along the ood chain.Sustainable consumption

The industry will look beyond consumer inormation and engage with government and stakeholdersto acilitate increased awareness and public debate on sustainable consumption.The industry will engage with retailers and other stakeholders to inorm consumers about the impacto their diet on sustainability and how it relates to theirliestyle.


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SUSTAINABLESOURCINg


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The UN predicts that the world population will reach 8 billion in 2030 and will require 50% more ood production,

thereby putting additional pressure on natural resources. The ood and drink industry is vulnerable to the impacto climate change on the availability o agricultural raw materials, both in terms o quality and quantity.

FoodDrinkEurope supports a holistic approach to sustainable practices both in the EU and worldwide and aimsto secure sae ood supply in terms o both quality and quantity, protect the natural environment and improve thesocio-economic conditions o local communities.

We are engaging in many concrete initiatives to support sustainable agricultural practicesboth in the EU and globally and to develop commodity-specic sustainability schemes.

The European ood and drink industry is aced with the twin challenge o ensuring access to raw materials atcompetitive prices and the sustainable supply o nutritious ood against the backdrop o global ood security.The amount o arable land worldwide per capita halved during 1960 to 2007 rom 0.39 to 0.21 hectares, whilstdemand or arable land is increasing not only rom the ood and eed production but also the biouel, paper andtimber industries among others10. This increasing demand or ood and eedstocks, combined with climate changeimpacts such as droughts and fooding, has resulted in additional pressure on ood availability. To address thischallenge, resource use and adverse environmental impacts must be decoupled rom economic growth. The abilityo ood manuacturers to promote decoupling and the level o interaction among members o the supply chain varyconsiderably depending on numerous actors, such as the structure o the chain and whether the company is alarge or small buyer.

challengeS

billion in 2030 50%more ood

production


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Responsible cultivationpractices that preserve soilertility and prevent soil erosion,pollution, salinisation and loss oarable land and biodiversity

Responsible and limited wateruse

Energy eciency and thereduction o greenhouse gases(GHGs) and other emissions

Prevention o waste whereverpossible and recycling andrecovery as much as possiblewhere prevention is not easibleImprovement o working andliving conditions o armers,

Farm dependent employeesand their amilies andopportunities to improvetheir skills over time

Animal welare

Respect or national, EU andinternational regulations

Respect or reedom oassociation

Sustainable sourcing shouldalso be market driven

Responsive to consumerdemand

SuStAinAble AgriCulture

The three elements o sustainable sourcin

Sustainable agriculture must integrate the three elements o sustainability: environmental, social and economic.

Environmental Social Economic


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I sustainably managed, arming systems can deliver many environmental benets, such as wildlie andbiodiversity protection, contribution to water accumulation, nutrient recycling and xation, food control, soilormation, carbon sequestration by trees and soil and the provision o recreational services and aesthetic value.Dierent arming systems (e.g. conventional, integrated, organic, mixed and crop-specic systems and others)can complement one another as long as measures are taken to promote environmental sustainability.

The expansion o agricultural land into rainorests and its adverse impact on biodiversity, soil degradation anderosion are key concerns or the environmental sustainability o ood production. Biodiversity is vital or thelong-term success o ood and drink companies. The services provided by dierent managed and unmanagedecosystems such as ormation o soil, the regulation o the water cycle and climate, and the pollination o plants,play a key role or the ood and drink industry.

The European ood and drink industry is aced with the challenge o biodiversity loss which has accelerated atan unprecedented level, both in Europe and worldwide11. Pressure rom expanding agriculture has been a majoractor leading to recent tropical deorestation, especially in South America (where conversion to soybean andcattle ranching is the greatest pressure) and south-east Asia (owing to palm oil conversion). This has a numbero very adverse eects:

The conversion o tropical orests to agricultural land releases one-o large amounts o GHGs. It also reducesthe lands subsequent ability to take up GHGs.

Tropical deorestation may have direct and damaging eects on local climate and the associated biodiversitywhich is lost immediately.

Tropical rainorests are home to many indigenous groups.

Deorestation is one o the principal drivers o climate change12.

Biodiversity is vital or the lon-term

success o ood and drink companies


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A Genetically Modied Organism (GMO) is an organism in which the genetic material has been altered in a waythat does not occur naturally by mating and/or natural recombination (Directive 2001/18/EC). Since 1996 whenthe rst commercial GMOs were harvested, GMOs have been armed at increasing rates around the world.By 2011, GM crops were cultivated by 16.7 million armers on almost 1.6 billion hectares in 29 countries13.This poses a challenge or the European ood and drink industry, which sources globally, as Europe is notsel-sucient in all raw materials.

At the same time, the industry respects consumer choice and responds to European consumers currentpreerence or products derived rom conventional raw materials. Industry has put in place identity preservationsystems or conventional crops that strictly control supplies and processes. These systems ensure ulltraceability back to the arm, and tight tolerance thresholds are set or the presence o traces o GM material.

FoodDrinkEurope supports the co-existence o dierent arming systems and believes that measures shouldnot limit producer choice o arming methods, industry raw material demands or consumer choice.

genetically modied oranisms (gMOs)

Since the last reporting period (2008), ood and drink manuacturers have continued to demonstrate howgoverning bodies, corporations and NGOs can work together to improve the environmental sustainability oagricultural raw materials.

The uptake o environmental sustainability schemes or key commodities has made signicant progress, andmany new commodity initiatives have emerged. A key trend is that sustainable sourcing schemes are adoptinga more holistic approach, addressing environmental, social and economic aspects o sustainability.

In addition, some ood and drink companies are integrating sustainable sourcing into their overall businessstrategy, product design and corporate policy.

ProgreSS


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Multi-stakeholder initiatives with

codes and standards:

Bonsucro(Better Sugarcane Initiative)

Common Code or the CoeeCommunity (4C) Association

Consumer Goods Forum (CGF)

Marine Stewardship Council

(MSC)Rainorest Alliance

Round Table on Responsible Soy(RTRS)

Roundtable on Sustainable PalmOil (RSPO)

Sustainable Rice Platorm

UTZ Certied

World Cocoa Foundation (WCF)

Industry learning platorms

EU Business and BiodiversityInitiative (Business@Biodiversity)

Sustainable Agriculture Initiative(SAI) Platorm

Business-to-business industry

standards

GLOBALG.A.P

SuStAinAble SOurCing COmpAny pOliCieS,

COdeS And SCOreCArdSSome companies have integrated environmental considerations that go beyond legal requirements into theirsourcing and supplier reporting policies. Such standards are o particular importance where internationalrameworks are non-existent or in their inancy.

To develop and promote common evaluation methods or determining supply chain perormance, a group o24 industry partners, including 14 leading ood and drink producers, set up the global initiative programme orresponsible sourcing. PROGRESS members are determining criteria or supplier perormance and promotingresponsible sourcing practices. Through this platorm and in line with supplier agreements, responsible sourcingaudit reports are shared among members avoiding duplication o work or suppliers.

There are a range o industry-wide sustainability initiatives to address the aorementioned challenges.

multi-StAkehOlder ACtiOnS


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COmpAny SOurCing tArgetS

Companies are continuing to integrate environmental sustainability into their sourcing practices, and some havemade public commitments in line with rising consumer demand or products complying with specic criteria.

MW Brands (John West) aims tosource 100% o its tuna or theDutch market using sustainableshing methods by 2016, incooperation with the InternationalSeaood Sustainability Foundation.

Unilevercurrently sources 30%o its agricultural raw materialssustainably, and aims to reach100% by 2020.An even more ambitious 2015target or 100% sustainablesourcing has been established orpalm oil, Lipton tea bags, ruit andvegetables and cocoa or Magnumice cream. The target date or100% sustainable soy beansourcing is 2014.

Companies such as Barilla,Coca-Cola, General Mills,

Kellogg, Krat, Nestl, PepsiCo,

Sara Lee, and Unileverhavepledged to mobilise their collectiveresources to help achieve zero netdeorestation by 2020.

Ferrero, General Mills, Mars,

Nestl and Unileverwill all source100% certied sustainable palmoil by 2015. Kellogg increasedits purchasing o green palmcerticates in 2011 to cover100% o its global palm oil use.In addition, Kellogg Europe willstart using Certied Segregatedsustainable palm oil during 2012.

Mars will source 100% o itscocoa, sh and seaood romcertied sources by 2020. Thecompany will source 100% o itscoee rom certied sources by2013, and 100% o its black tearom certied sources by 2015.

Ferrero will source only sustainablycertied coee by 2015 and cocoaby 2020.


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member initiAtiVeS

CAOBISCO, the Association o the Chocolate, Biscuits and Conectionery Industries o Europe togetherwith notably the Federation o Cocoa Commerce and the European Cocoa Association is participating in thedevelopment a CEN standard on sustainable and traceable cocoa. This standard will serve as a strong ramework,providing or a clear and measureable denition o sustainable cocoa, a robust and credible tool adressing social,ecological and economic aspects making sustainable cocoa a mainstream concept.

CAOBISCO supports the development o a European Standard

on sustainable and traceable cocoa under the leadership o CEN

1 http://www.sustainabelpalm.be/2 http://www.taskorceduurzamepalmolie.nl/

The Belgian Food and Drink Federation (FEVIA) has developed a Sustainable Palm Oil Charter and isencouraging its implementation by members. FEVIA is supporting the uptake o certied sustainable palm oilthrough seminars and providing inormation to companies on how they can buy RSPO certied palm oil. By2015, all palm oil in Belgium or Belgian products shall be RSPO certied. FEVIA also supports the Belgianinitiative or the eed sector or Sustainable Soy.

Belgian Sustainable Palm Oil Charter and Sustainable Soy1

The Task Force aims to stimulate demand or sustainable palm oil among members by providing clearinormation and advice. The overall ambition is to ensure that all palm oil bought and used in the Dutch marketis produced sustainably by 2015. The Task Force secretariat, the Product Board or Margarine, Fats and Oils,is currently working on a monitoring system to measure progress towards the 2015 objective. The Dutch FoodIndustry Federation (FNLI) is a Task Force member.

Dutch Task Force on Sustainable Palm Oil2

Productivity is an essential ingredient or economically viable and sustainable coee arming. Nestl is workingwith Rainorest Alliance to develop the Nespresso AAA Sustainable QualityProgram. The Program involvespaying coee armers premiums o around 30-40% above the market price or the highest quality coee andmore sustainable arming practices through certication to the Sustainable Agriculture Network (RainorestAlliance) standard. Signicant progress has already been made, as in 2010 Nespresso sourced 60% o its coeerom roughly 40,000 armers. By 2013, 80% o Nespresso coee will come rom this Program.

Nestl encourages armers to improve arming practices

Butlers Choice, a small Danish processed sh company with 24 employees in Denmark, Vietnam and India iscommitted to making an eort to source its sh sustainably. Butlers Choice supports Aquaculture StewardshipCouncil-certied armed sh and works with MSC-certied requirements or wild-caught sh. The company aimsor 100% traceability or its sh and shellsh and is committed to preventing wastewater discharge and the useo medicine on sh arms o suppliers.

Butlers Choice committed to sustainable sourcing

Cargill has announced that the palm oil products it supplies to its customers in Europe, United States, Canada,Australia and New Zealand will be certied by RSPO and/or originated rom smallholder growers by 2015 (thisexcludes palm kernel oil products). This commitment will be extended across Cargills entire oil and tradingbusinesses to cover 100% o its palm oil products and all customers worldwide by 2020.

Cargills global commitment on sustainable palm oil


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oPPortunitieS

The ood and drink sector will need to work together with stakeholders to address the ollowing opportunitiesand challenges:

Designing sustainable supply chains while ensuring that market structures remain ecient, competitive andcapable o meeting consumer needs. Mainstreaming sustainable sourcing will not only provide environmentalbenets but also strengthen the administrative structures required to dene, implement and veriy sustainablearming practices worldwide.

The implementation o sustainable sourcing strategies may result in more vertically integrated supply chains.Where competition law can be a barrier to joint sustainable sourcing initiatives, Guiding Principles or public-private partnerships could be a means to achieving sector-wide sustainable sourcing.

Higher standards o sustainable sourcing can be reached by extending certication to other commodities,integrating sustainability along the supply chain through hotspot analysis, targeted audits and harmonisingcertication schemes.

Long- term contracts, based on perormance and close relationships with armers, that cover all three pillarso sustainability should be established.

Mobilising public and private investment in agricultural productivity and yield growth while optimising resourceeciency, minimising adverse environmental impacts and ensuring ood quality, security and saety. Thecontribution o new ood technologies to these objectives will ultimately depend on consumer acceptance.

Providing technical assistance to armers as necessary, especially smallholders, and advice on arming best

practices while generating greater yields, higher-quality crops, lower resource use, increased income andreduced rural poverty.

Lon-term contracts based onperormance and close relationshipswith armers that are sustainable inall three pillars should be established.


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the CASe fOr mOre COllAbOrAtiVe ACtiOn

Policymakers are encouraged to acilitate the development o an environment in which progressive publicand private initiatives that achieve results beyond the regulatory ramework can thrive.This entails encouraging sustainable arming practices, providing incentives or investment in agriculturewhile protecting the environment and ensuring basic inrastructure.

Civil society stakeholders are encouraged to work with industry to promote urther roll-out and developmento multi-stakeholder initiatives that go beyond regulation. Required actions include providing an externalsource o credibility and accountability, creating a orum or ramework or competitors to tackle environmentalchallenges together, contributing to training and technical expertise and working with industry to pilotinitiatives.Certication scheme achievements at eld level should be more transparent and better communicated.

Standards organisations have proven to be very successul in delivering supply chain transparency but moreeort is needed in terms o nancial management and programme implementation and, more importantly, inassessing and communicating their real impacts14.Harmonisation o sustainability standards. A clear pattern o duplication and overlap among many standardshas become apparent, leading to a general consensus on the need or all ood chain stakeholders to worktogether towards the harmonization o environmental sustainability standards.

The European Food and Drink Industry in 2030 must be an example to the rest o the world on how to provide

sae, nutritious and high quality ood and drink or the European market in a sustainable and resource-ecient

way. The industry must realise that a lie-cycle approach to the ood supply chain right through to the action o

the consumer is the only way to tackle the 40% o ood wasted in todays ood supply chains.

While the need to produce enough ood or 9 billion people in 2050 is real, this does not mean that the sector

should ollow a path to high input, intensive production. Incentives or an integrated and sustainable production

model must be provided by the industry and sustainability rewarded by the market and the consumer.

Within the context o changing climate, rising population and changing global tastes, I welcome

FoodDrinkEuropes 2030 vision in which resource eciency and the role o consumption is included to ensure

that the ood and drink industry in Europe leads the way toward more sustainable ood systems.

James Lomax,

Agri-Food Programme Ocer, United Nations Environment Programme


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RESOURCEEFFICIENCY


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Rising and more volatile ood prices are making investment decisionstougher and access to resources more dicult. Raw materials, water,air, biodiversity and terrestrial, aquatic and marine ecosystems are allunder pressure. This pressure will only continue to increase with theglobal population expected to reach 8 billion by 2030. As a result theenvironmental repercussions o resource use are also a priority or the

ood industry.

In line with the European Commissions Resource Eciency Roadmap,15European ood and drink manuacturers are committed to making acombined eort with armers, retailers, consumers and other stakeholdersto create a more resource ecient global economy.

The three priority areas or action or FoodDrinkEurope members in their

own operations are energy, water and the management o resources andwaste.

Foodmanuacturing

Resources & Waste Energy & Climate Water


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ENERgY &CLIMATE CHANgE

European ood and drink manuacturers are committed to contributingully to mitigating the eects o climate change and are investing in awide range o activities to cut GHG emissions and energy use, as wellas considering adaptation measures. FoodDrinkEurope supports the EUroadmap or moving to a competitive, low-carbon economy by 2050 as ameans to achieve urther emission reductions.


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challengeS

ProgreSS

energy uSe

ghg emiSSiOnS

VOluntAry ghg reduCtiOn And energyeffiCienCy COmmitmentS

The ood and drink industry considers energy eciency as an important driver or increased industrialcompetitiveness and improved environmental sustainability. Food and drink manuacturing accounts orapproximately 5.3% o nal industrial energy use worldwide. Companies are making signicant eorts to improvetheir energy perormance. The urther promotion o energy ecient technologies, such as Combined Heat andPower (CHP), will help Europe set out on the right path towards a low-carbon society at both European andglobal level.

European ood and drink manuacturing accounts or approximately 1.5% o total EU GHG emissions16.Emissions rom energy use occur directly on-site rom the burning o liquid, gaseous and solid uels and rompurchased energy generated o-site. However, large dierences exist in energy intensities across ood and drinksub-sectors.

Production value

Direct GHGemissions EU 27

The EU ood and drink manuacturing industry achieved a decoupling o output and direct GHG emissions over the period

1999-2008 by 18% while increasing production value by 29%.

Climate change aects the availability o agricultural raw materials and clean water; thus it directly aects thesustainability o the ood and drink industry. In addition, rising uel and energy costs and policy measures likethe EU Emissions Trading Scheme (EU ETS), which attaches an economic cost to GHG emissions, means that

reducing uel and energy use and cutting emissions makes good business sense.

Figure 1: Evolution o GHG emissions in the EU ood and drink manuacturing industry (1999-2008)

0

20

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

40

60

80

100

120

140

(EU-25 1999-2005, EU-27 2004-2009)

Source: EEA,

Eurostat, 2008

Percentage(%)


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The ood and drink industry has reduced their GHG emissions by 18% while increasing production value by 29%between 1999 and 2008 (see gure 1) Many European ood and drink manuacturers have set out internal goalsto reduce their environmental ootprints and a large number are certied or in the process o being certied withISO 14001 (International Standard on environmental management systems) or the EU Eco-Management andAudit Scheme (EMAS). The European ood and drink industry currently has the th highest number o EMAS

registered organisations in any sector17. The Carbon Disclosure Project, Global Reporting Initiative, CarbonTrust Standard and GHG Protocol are other tools that ood and drink companies requently use to understand,quantiy, manage, report and reduce their GHG emissions.

The Federation o German Food and Drink Industries established the Energy eciency in the German Food andDrink Industry network with international technology corporation, Siemens, in 2008. Under the guidance o theSiemens energy consulting department, 8-12 ood and drink companies participate in nationwide annual EnergyRoundtables to develop individual energy concepts, i.e. corporate action plans to reduce energy consumptionand improve energy eciency. Since 2008, 200 o the ood and drink companies that have participated showthat organisational measures can reduce energy costs by up to 20% with minimal eort. This network hasdemonstrated that the ood and drink industry plays an active and responsible role in addressing the challenges oclimate change.

Federation o German Food and Drink Industries establishes Energy Roundtables

The UK Food and Drink Federation (FDF) has committed to working collectively to tackle climate change bymaking an absolute reduction in CO

2emissions o 20% by 2010 and 35% by 2020 against a 1990 baseline.

By 2010 FDF members reduced their CO2

emissions by 25% compared to the 1990 baseline. This is animpressive result as it exceeds their 2010 target by 5%.

UK ood and drink industry commits to absolute CO2

reduction o 35% by 2020

In order to urther improve its environmental ootprint, Alpro has started an ambitious CO2

reduction programmeaiming or CO

2neutral actories in 2020. Since the start o the programme in 2007, Alpro has achieved an

energy saving o 34% per nished product. Based on an aggressive urther CO2

reduction programme, Alprohas also become the rst European ood company under the WWF Climate Savers programme. Alproscommitment is to keep its actories emissions in 2013 below 2008 levels, despite orecast growth in volumes.This is equivalent to emitting 42.000 tonnes less o CO

2than in a business over the 2008-2013 period.

Alpro aims or CO2

neutral actories by 2020

FEVIA, the Belgian Food and Drink Federation, measures and benchmarks energy eciency in the Flemishbrewery sector. Poor perormance in energy use and beer production is measured and, based on this,energy-specialists audit the least perorming breweries to identiy possible measures or energy eciencyimprovements.

Belgian ood and drink industry improves energy eciency o Flemish breweries

Barilla has set targets to reduce total energy consumption per nished product by 10% by 2014 based on a

2008 baseline. Barilla also aims to reduce the carbon produced in its actories by 15% by 2014.

Barilla pledges to reduce total energy consumption per nished product by 10% by 2014


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The EU ETS aims to reduce GHG emissions as much as easible, at the lowest possible cost to industry.The scheme is mandatory or ood and drink companies operating combustion installations above 20 Mega Watts,with approximately 900 ood-processing installations in the EU currently covered. Food and drink manuacturersstrive continuously to meet increasingly stringent GHG emissions reduction targets, which, under the third TradingPeriod, require reductions o 21% by 2020 relative to 200518. FoodDrinkEurope welcomes the harmonisedtransposition o EU ETS benchmarking across all Member States to ensure a level playing eld or operators.

The ood and drink sector has signed Long- Term Agreements (LTAs) on energy eciency between governmentand industry in some EU Member States.

The Netherlands

The rst LTA in the Netherlands was signed in 1992 and over 29 sectors participated until 2000, leading to acumulative energy eciency improvement across sectors totalling 22%. Under the second LTA, 198 ood anddrink companies out o a total o 902 companies avoided 5.1 million tonnes o CO

2between 2000 and 2006.

LTA 3 was signed in 2008 or the period 2009-2020 and companies are obliged to implement measures thatcan be recouped in less than ve years. Participants must submit a progress report every year, with resultsmonitored by the Dutch Government Agency, SenterNovem.

Finland

National Energy Eciency Agreements (EEA) play a crucial role in Finlands eorts to meet its energy eciency

targets. The agreement system or the period 2008-2016 is co-ordinated by industry associations and theMinistry o Employment and the Economy. Currently the EEA or the ood and drink industry covers some 67%o the sectors energy consumption and the industry has committed to improving energy eciency targets by9% by 2016. A 2010 evaluation report commissioned by the Finnish Food and Drink Federation and the FinnishGovernment reveals that the investment costs o these measures were 1.4 million euro while savings on energycosts amounted to 0.5 million euro. Based on the monitoring results, the ood and drink industry is the secondbest sector under the EEA scheme in terms o energy savings and improvement measures in Finland19.

The ood and drink sector has sined Lon TermAreements (LTAs) on enery eciency betweenovernment and industry in some EU Member States.

eu emiSSiOn trAding SCheme (eu etS)

nAtiOnAl energy effiCienCy AgreementS


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Some o the rerigerant gases commonly used by ood and drink manuacturers, such as hydrofuorocarbons

(HFC), contribute to climate change i they escape to the atmosphere. While HFCs account or only 0.2% o theood and drink industrys GHG emissions, the industry is gradually switching to alternative rerigerants as theybecome technically and economically viable, sae and energy ecient20.

Where viable alternatives are not yet available, the industry ully supports the objective o the EU F-gasRegulation, which aims to prevent HFC emissions through an advanced containment regime.

In September 2011, the Commission published a review o this Regulation and identied options or additionalcost-eective reductions o fuorinated gases in the EU, with the intention to propose new measures in 2012.FoodDrinkEurope continues to engage with policymakers on this important issue.

AlternAtiVe refrigerAntS

Rerierants, Naturally!

This multi-stakeholder initiative was launched by The Coca-ColaCompany, Unilever and McDonalds and now also includes PepsiCo.It is supported by Greenpeace and the United Nations EnvironmentProgramme (UNEP) and it is ocially recognised by the UN as a

Partnership or Sustainable Development. It aims to promote a shit inpoint-o-sale cooling technology to alternative HFC-ree solutions thatprotect both the climate and the ozone layer.

Due to their biological origin, by-products, urther residues, materials and waste rom ood processing canmake a valuable contribution to the EU objective o attaining a 20% share o total EU energy consumption romrenewables by 202021. The European ood and drink industry has put in place practices aiming to utilise 100%o their agricultural raw materials (see chapter on Waste). Every tonne o ood waste sent or biological treatmentcan deliver between 100-200m3 o biogas22, thereby reducing dependency on ossil uels and cutting GHGemissions.

inCreASed uSe Of renewAbleSAnd biO-energy


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Ferrero aims to develop its own energy production capacity to cover the needs o all o its manuacturing

plants in Europe beore 2013. In addition, the company has set a target o 30% own energy production romrenewable sources beore 2020. This will result in a CO

2emissions reduction o 40% compared to 2007.

As part o their Sustainable in a Generation (SiG) programme, Mars has set a target o achieving zero ossil-uel energy use and zero GHG emissions at operations by 2040 and reducing direct ossil-uel energy use andGHG emissions by 25% by 2015 based on a 2007 baseline. In 2010, total ossil uel energy use or all MarsIncorporated operations was 20,973 Terajoules (TJ), a reduction o 6.3% rom the 2007 baseline.

Renewable and bio-energy will be vital to achieving these ambitious goals. For example, two Wrigley acilities

in Poznan, Poland, and Porici, Czech Republic, have been designed to capture methane rom their waste-treatment operations and redirect it to uel boilers that heat water. This process prevents the methanerom being released into the atmosphere and will reduce consumption o ossil-uel derived natural gas byapproximately 3% annually.

Every tonne o ood waste sent or bioloical treatment candeliver between 100-200 m3 o bioas, thereby reducindependency on ossil uels and gHg emissions.

Ferrero aims to develop its own renewable energy by 2020

Mars set to achieve zero ossil uels and zero GHG emissions by 2040

Investment in low-carbon technology: Combined Heat and Power (CHP)

Food manuacturing acilities have a signicant demand or heat and cooling. The best way to provide heat isrom a CHP plant as this provides maximum primary energy saving opportunities. Manuacturing acilities canbe designed to provide uel fexibility and to use by-products as renewable uels, thus producing renewable

electricity and renewable heat. CHP also relieves congestion on the local electricity grid to the benet o theregion and can provide high power reliability and sel-suciency-especially as major primary ood productionacilities are located in rural areas with poor inrastructure.

Kelloggs manuacturing plant in Manchester, UK, contains a 4.9 MWe (megawatt electrical) CHP Plant thatsupplies 85% o the plants current steam demand and approximately 50% o electricity demand. The use o theCHP plant reduces CO

2emissions by approximately 12% annually compared to energy received rom previous

sources.

FoodDrinkEurope welcomed the Commissions Energy Eciency Directive presented in June 2011 and itsproposals to encourage urther uptake o CHP and to acilitate urther investment in low-carbon technology.


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FoodDrinkEurope members are committed to a number o initiatives that aim to address energy and climatechange. These include:

United Nations

Global Compact

WWF

Climate Savers

Programme

The Prince o Wales

Corporate Leaders Group

on Climate Change

oPPortunitieSAs the above case studies demonstrate, many o FoodDrinkEuropes members have integrated energy andcarbon management into their daily business practices and are achieving impressive results. The challenge liesin helping under-perorming companies to catch up, while encouraging ront-runners to urther improve theirachievements.

Overcoming barriers to investment

Food and drink manuacturers oten ace a number o investment barriers when implementing sustainableenergy and carbon management plans. These include long pay-back periods in a sector used to shortinvestment cycles, the availability o investment unds and limited commercial competitiveness in emerging

technologies. Investment uncertainty and energy price volatility are also signicant barriers. For example, in thecase o CHP, certain barriers remain or its increased uptake. There are higher investment risks compared tosourcing rom boilers or power rom grids and targeted support is varied across Member States and is generallyinsucient or establishing maximum CHP capacity. As such, FoodDrinkEurope believes there is a need toensure Member State implementation o the Cogeneration Directive without delay and or nancial supportschemes and incentives, as well as the enhanced spread o best practice across industry, with particularattention to SMEs.

Long-term energy strategies

In the long-term, ood and drink manuacturers look orward to improvements in commercial competitivenesso emerging alternative energy sources. By-products and waste in particular will make a great contribution to

reducing long-term GHG emissions in the ood and drink sector.


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the CASe fOr mOre COllAbOrAtiVe ACtiOn

Global cooperation to cut GHG emissions

The European ood and drink industry supports the EUs call or limiting global warming by a maximum o 2C.In order to reach this goal, the EU needs to reduce emissions by 80-95% below 1990 levels by 205023. The oodand drink sector backs ambitious strategies to encourage energy eciency, the right incentives or investmentand guarantees or legal certainty or businesses.

Increased support or renewable and bio-energy

Member States must align their national energy mix with GHG reduction targets. The competitiveness olow-carbon technologies, such as anaerobic digestion (i.e. the process where plant and animal material(biomass) is converted into useul products by micro-organisms in the absence o air24) and CHP, shouldbe enhanced by the introduction o well-designed incentive schemes.

FoodDrinkEurope supports an ambitious global climate change agreement

The Kyoto Protocol to the United Nations Framework Convention on Climate Change (1998) commits37 industrialised countries and the European community to reduce GHG emissions to an average o 5% against1990 levels between 2008 and 2012. The UN Climate Change Conerence is now negotiating an agreement orendorsement no later than 2015.

FoodDrinkEurope members call or an ambitious agreement to adequately address the dual global challenge oood security and climate change, in order to provide the right incentives or investment and to guarantee legalcertainty or businesses as well as providing or a more sustainable planet or the uture. Further commitmentto a reduction in EU GHG emissions beyond 20% by 2020 should be agreed upon condition that other nationsagree to take the same action and i developing countries agree to accept similar measures based on their

respective capabilities.

The Danish Presidency set a pro-active agenda or green and sustainable growth. The goal is to create

growth without increased resource and energy consumption, and this is possible. The EU has in recent years

developed an ambitious energy and climate policy, taking the lead globally. We must work to maintain this

advantage through new initiatives. In light o the current economic situation, it is vital that this happens in a way

that supports economic recovery and supports the consolidation o public nances. The solution must be cost

eective and take account o the competitiveness o businesses.

We will work or a ocused and ambitious seventh Environmental Action Programme (7th EAP) and an ambitious

European energy and climate policy by 2050 with improved energy eciency and increased use o renewable

energy. There must be a strong European voice at the Rio +20 Conerence with the objective to achieve the

adoption o a roadmap or green transormation o the world economy.

It is my hope that FoodDrinkEurope and other businesses in Europe will contribute to meet these goals.

Jonas Bering Liisberg,

Deputy Permanent Representative (Denmark)


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WATER

The ood and drink industry has shown leadership in its voluntarily actionsto reduce water use, as the quality and quantity o water available is criticalor the sectors sustainability. A certain amount o water use is unavoidableor the production o ood and drink products and to ensure compliancewith stringent EU hygiene requirements, as ood saety and hygiene areo utmost importance. We are proud nonetheless to report measurable

achievements in improving water eciency, saving both water and money.


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wAter uSe fOrfOOd And drink mAnufACturing

wAter uSe fOr AgriCulturAl prOduCtiOn

In 20 years time, demand or water will be 40% higher than it is today and a third o the worlds population

will experience water scarcity which will aect the production o staple oods, whilst reshwater withdrawalsare expected to exceed natural renewal by over 60%25.

challengeS

The European ood and drink manuacturing sector accounts or only about 1.8% o water use in the EU, based ondata rom the UK, Belgium and the Netherlands26. The amount o water used by the ood processing industry romthe public water supply varies widely across sub-sectors and regions and data is not available or the EU 27.

Water is an essential input or the ood and drink industry, both as an ingredient and key processing element.Water is also used as a cooling agent in many production processes. Clean water is vital or ood saety as it isused to clean and sanitise foors, processing equipment, containers and ingredients, and can account or up to70% o a companys water use27.

Agriculture is the dominant user o resh water worldwide, accounting or 70% o global and 24% o European

water consumption. Inecient irrigation techniques, combined with water loss through evaporation, overuse ogroundwater and pollution all threaten the availability o resh water28.

The impact o agriculture on water availability depends to a great extent on local conditions such as water scarcity,climate and water governance. Agricultural production requires water, yet its availability to armers is increasinglythreatened due to overuse, population growth and urbanisation. As such, there is a need to implement good watermanagement practices.With adequate pricing structures oten missing, it is oten necessary or ood and drink manuacturers to sensitisearmers to the real value o water and promote water stewardship. This is particularly dicult to do in the cases ocomplex ood supply chains where there is oten no direct interaction between suppliers and manuacturers.

Clean water is vital or ood saety asit is used to clean and sanitise foors,processin equipment, containers andinredients, and can account or up to70% o a companys water use.

70%


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imprOVing wAter effiCienCy

ProgreSS

Due to the complex and highly varied nature o the ood and drink manuacturing industry, the possibilities orreducing water consumption at actory level depends on product requirements - e.g. a certain amount o water useis unavoidable or a water-based drinks manuacturer.

Actions to improve water eciency include, among others, developing and using water consumption monitoringtools, rainwater harvesting or non-production parts o the site, installing water recovery and recirculation systems,modiying cleaning and housekeeping practices, preventing and stopping water leakages, increasing awareness,using sensor-controlled taps or hand-controlled triggers on hoses, using low volume high pressure water jets,redesigning processing techniques to reduce water use and sta training.

In the UK, a voluntary Federation House Commitment was launched in 2008 by the UK Food and Drink Federation(FDF) and Envirowise to reduce water use in the ood and drink sector as part o the FDFs Five-old EnvironmentalAmbition. Companies have pledged to reduce their on-site water use, excluding water incorporated into products,and contribute to an industry-wide reduction target o 20% by 2020 against a 2007 baseline. Signatories arealso required to provide annual updates o their progress, water reductions and cost savings. Over 50 signatorycompanies (245 sites) reduced their water use by 5.3% in 2010 compared to 2007 - equivalent to almost 1.3million cubic meters (m3) or 520 Olympic swimming pools. Signatories reduced water use (excluding that in theproduct itsel) by 11.9% per tonne o product despite a 7.5% rise in production.

UK Federation House Commitment

Plzensk Prazdroj has systematically reduced water consumption in its production process. Water ormsapproximately 95% o beer content, and on average it takes 5 hectolitres (hl) o water to produce 1 hl o beer.Plzensk Prazdroj places special emphasis on reducing water consumption in the production process, monitoringwater resources and taking into account the regions water needs, applying principles o responsible treatmento water resources and minimising the impact on the environment in water waste management. As a result,Plzensk Prazdrojs average water consumption is one o the lowest in the Czech Republic and lower than the

world average, at 4.1hl per 1hl o beer. From 2010 to 2011, Plzensk Prazdroj reduced total water consumption by7.83%.

Czech beer company, Plzensk Prazdroj increases beer production with less water

Although the water used in Unilever actories amounts to less than 5% o the water consumed in the liecycle oits products, Unilever has more than halved its water abstraction or manuacturing rom 1995 to 2009. Unileverreduced its water use by 18.7 million m3 o water, or 7,500 Olympic-sized swimming pools, each year rom 2006to 2011.

Unilever cuts water use in actories by 65%


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Danone manages its water resources ocusing on our key areas: protection o resources, reducing waterconsumption, contributing to the restoration o the global water cycle and acilitating access to water. From 2000to 2010 Danone has signicantly improved the eciency o water use in its plants and is currently implementing atool to assess the water use o their products allowing identication o key hot spots based on the liecycle o aproduct.

The Sustainable Agriculture Initiative at Nestl (SAIN) -an initiative to support armers and promote sustainabledevelopment worldwide, celebrated its 10-year anniversary in 2011. SAIN ocuses on a broad range o commoditiesincluding milk, coee and cocoa, and enables Nestl to address some key challenges in water management andirrigation. For example:

Water use at Nestls coee demonstration arm in Yunnan Province, China was reduced by 80% in 2010through the introduction o new post-harvest equipment;

A partnership with the Swiss College o Agriculture is using the updated RISE 2.0 (Response-InducingSustainability Evaluation) tool to improve the sustainability o water use in Mexicos dairy industry at 13 armsin the Torreon municipality.

Danone saves 6.1 billion litres o water since 2008

Nestl engages with armers to implement improved water management practices

Waste water is the most common waste in the ood and drink industry. This is because ood processing involvesa number o operations in which water is an essential requirement, such as washing, boiling, evaporation,extraction, ltration and cleaning. Waste water at many ood and drink actories is characterised by organic

contamination, and is generally micro-biologically puried beore discharge.European ood and drink manuacturers undertake signicant eorts and continuous investment to ensure soundwaste water treatment, which consists o three main elements: rst, to reduce the amount o waste water throughecient processing methods; second, to improve the quality o waste water through state-o the-art watertreatment; and third, to optimise the re-use, recycling and recovery o waste water whenever possible.

For example, the organic components in waste water can be valorised to produce ertilisers and biogas, therebysignicantly improving the quality o discharged water while also improving energy eciency and reducing thedischarge o oxygen depleting substances (COD).

COntinuOuS imprOVementOf wASte wAter quAlity


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Sugar beet is 75% water. The water that leaves the beet during the production process is condensed, used orbeet transport, washing water, extraction and crystallisation and recycled several times. The EU sugar industry(represented by Comit Europen des Fabricants des Sucres (CEFS)), is thereore able to keep resh water usageto a minimum. The sugar industry has also developed ecient water treatment systems which reduce the organicmatter in water that leaves the actory by 90% beore the water is re-used in agriculture or returned to local watercourses.

Krats actory in Chirk, UK treats wastewater on-site and re-uses it in boilers, cooling towers and other waysthat do not bring the water into contact with ood. Re-using wastewater has reduced this plants reshwaterconsumption by 40%. Globally, Krat has reduced water consumption in its manuacturing acilities by 30% since2005. Krat aims to reduce its water use by an additional 15% by 2015.

The re-use o water rom on-site cleaning stations is regulated by EU Regulation No. 852/2004 on the hygiene ooodstus. It stipulates that recycled water used in processing or as an ingredient must be o the same standardas clean drinking water. Where allowed by ood hygiene laws, investments have been made in technology to allowwater recovery and re-use, such as recuperating water rom steam, without compromising on ood saety. Suchinvestments constitute the largest share o the ood and drink sectors environment-related investments in France,according to the French ood and drink ederation (ANIA). In addition to this waste water recovery and re-use,some industries, such as beet sugar actories, derive the majority o water they need or processing rom the crop.

OptimiSing wAter uSe in mAnufACturingAnd wASte wAter re-uSe And reCOVery

Beet sugar actories are net water producers

Krat UK plant reduces reshwater consumption by 40%

good water manaement is undamental to thelivelihoods o armers. Key opportunities or improvinwater manaement include increasin productivity in

rain-ed ariculture and more ecient irriation.


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Good water management is undamental to the livelihoods o armers. Key opportunities or improving watermanagement include increasing productivity in rain-ed agriculture; more ecient irrigation; and to a lesserextent, ensuring that world ood trade fows embedded virtual water (i.e. water that is evaporated andincorporated by ood crops during their growth) rom water-abundant to water-scarce countries.

wOrking with fArmerS tO mAnAge wAter uSe

FoodDrinkEurope supports the idea that the water ootprint based on a Lie Cycle Analysis could be an ecienttool or every actor o the production chain in order to nd out the weakest stages o the process, however, it isnot ideal or consumer inormation. While we support communicating environmental inormation to consumersin general, it should be based on a ull lie-cycle approach including all relevant impacts as discussed in theConsumers section. In addition to enhancing water eciency at actories, ood and drink companies areinvolved in various initiatives to advance the measurement o water use impact o ood and drink products.There is currently no globally agreed method or assessing the water impact o products, although a new ISOstandard (14046) on water ootprint is expected to be completed by 2014 based on a lie-cycle approach.Several FoodDrinkEurope companies are participating in the development o this standard.

Other initiatives that FoodDrinkEurope members are engaged in include:

AdVAnCing the SCienCefOr ASSeSSing wAter uSe

Water Footprint Network World Resources Institute(WRI) Aqueduct Alliance

Water disclosure projects have been developed to help investors assess the risks and opportunities companiesace in relation to water and to help companies measure and manage water use in their supply chains.FoodDrinkEurope members are committed to a number o initiatives that aim to improve water disclosure.

These include:

wAter diSClOSure

UN CEO Water

Mandate

Carbon Disclosure

Project (CDP) Water

Disclosure

Global Reporting

Initiative (GRI)


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The AWS is a platorm to develop a global water stewardship programme. It identies and rewards companiesor their eorts to measure, manage and engage with others in responsible water stewardship, especially inwater-scarce areas o developing countries. AWS is establishing a voluntary certication programme or watermanagers and users that will allow them to demonstrate compliance with, or support or, water stewardshipby adopting new International Water Stewardship Standards (IWSS) on a voluntary basis. These voluntarystandards will help companies improve water stewardship practices beyond their own activities, and willcomplement regulatory eorts to reduce water-related impacts, especially where those regulations are weakor absent.

BIER29 has dened a ramework or water stewardship, World Class Water Stewardship in the Beverage Industry2010. To date, BIERs work programme includes qualitative practice benchmarking against six leadershipprinciples, quantitative benchmarking to dene best-in-class water use eciency perormance within thebeverage industry, best practice sharing on various water management topics and the development o waterootprinting sector guidance that provides clarication and consistency in the quantication o a beverage waterootprint and introduces a screening methodology to identiy and prioritize water impacts rom a businessperspective..

Sustainable use o water resources is a key priority or the bottled water industry. In support o their commitmentto water stewardship, EFBW members voluntarily calculated the sectors water use at each acility type, atbottling locations throughout Europe over a ve year period (2006-2010). This initiative is a major step orwardor the sector. Not only does it provide a quantitative benchmark or water use, encouraging members toengage in a reliable and robust monitoring system, but it helps demonstrate continuous improvements in waterresource management. The rst set o results were published in March 2012, showing an 18% decrease inwater consumption between 2006-2010. Subsequent annual reporting will outline members best practicesand water saving initiatives, with the overall objective o enabling the industry to remain proactive on waterstewardship.

Water scarcity is a key concern or the ood and drink industry, as disruptions in operations due to water availability,increases in water expenses and other adverse water-related impacts would be detrimental to the industryscompetitiveness. As demonstrated in the above case studies, the ood and drink industry has made goodprogress in water use reduction and is committed to voluntarily improving water management practices urther.

VOluntAry wAter StewArdShip

oPPortunitieS

Alliance or Water Stewardship (AWS)

Beverage Industry Environmental Roundtable (BIER)

The European Federation o Bottled Water (EFBW)


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Additional water eciency gains can be made through urther roll-out o national, sector and companyguidance on good water management practices in the ood and drink sector.

Improving the water perormance o ood and drink products rom a lie-cycle perspective remains a keychallenge or the way orward, and will require collaboration with stakeholders, particularly those along theood chain. For example, there is currently a lack o detailed inormation about water availability and theextent o use o good water management practices. Overcoming data gaps would help the ood and drinksector ormulate more precise strategies or sustainable water use.

EU and national policies should support ecient water management and investment in water ecienttechnologies across all industry sectors. Further water eciency gains can be achieved through innovationand investment, especially in the recycling o pre-treated waste water, in line with stringent EU hygiene

requirements. Stakeholders must engage with governments to demonstrate eectively that water shortagescan be overcome at an aordable cost and that public policy should seek to create a avourable climate andincentives or investment in water eciency, particularly or SMEs.

Governments are urged to implement respective legislative measures on water or all sectors at the nationallevel without delay to ensure high water quality, sucient quantity and a level playing eld.

A globally harmonised methodology to assess the impact o water use taking into account local conditions.The ood and drink industry will continue to work with stakeholders to ne tune the ISO Standard on waterootprinting and to proactively engage in water stewardship.

the CASe fOr future COllAbOrAtiVe ACtiOn

Preserving resh water systems, whilst ensuring growth o communities and businesses, requires an innovative

approach not only based on technological improvements but also, and even more importantly, in managementinnovation. The European Water Stewardship (EWS) supports the ood and drink industry in its eort to

innovatively address integrated water management, which goes beyond water eciency and encompasses

considerations outside manuacturing acilities and engaging with local stakeholders. As a main player in water

management, you will denitely help to improve the water status o our water bodies and your example will bring

others on board.

Sabine Von-Wiren-Lehr,European Water Stewardship (EWS) Director, European Water Partnership


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WASTE

This section addresses the waste streams related to the production oood and current measures to avoid waste. FoodDrinkEurope is lookingorward to developing a commonly accepted denition o waste withall stakeholders that may help address this challenge in the uture. Theoverall aim o the European ood and drink industry is to optimise resourceuse at every stage in the ood chain without compromising ood saety.

Food and drink manuacturers are constantly striving to use 100% oagricultural resources wherever possible and nd uses or by-products notonly as ood, but also animal eed, ertilisers, cosmetics, lubricants andpharmaceuticals. The industry is exploring and investing in other innovativeoutlets such as bio-plastics and biouels. These actions improve resourceeciency, help reduce agricultural pressures on the environment andgenerate higher added value rom a unit o agricultural raw material makingthe ood and drink industry a key driver in the transition towards a bio-

based, low-carbon economy.


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wASted fOOd, wASted reSOurCeS

wASte mAnAgement

challengeS

Estimates o the current level o ood waste globally range rom 30% to 50% o all ood grown worldwide31.At EU level, ood waste is estimated to total 90 million tonnes annually, representing 179 kg per capita32excluding losses in agriculture. The European ood and drink sector recognises that when ood is wasted,the resources that were invested into producing the ood sustainably (the raw materials, water, ertilisers anduel) are also wasted. Tackling ood waste is thereore a priority issue or the industry.As the ndings o the UNEP report on ood waste show33, where waste occurs depends largely on the

economic development o the country (see gure 2). In developing countries most ood waste occurs upstreamin the ood chain, while in developed countries most o it occurs downstream. This is related to dierences in thelevels o technology, share o household income spent on ood and consumers liestyle34.

The European ood and drink industry is committed to ully complying with the relevant waste legislation andthe waste hierarchy set out within the Revised Waste Framework Directive35 in tackling the small volumes ounavoidable waste our sector produces. FoodDrinkEurope members are progressively implementing recyclingand recovery processes at their operations and divert as much waste away rom landll as possible.

DevelopingCountries

USA

UK

0% 50% 100%

Figure 2: The make-up o total ood waste along the ood supply chainScience (2010), Food Security: The Challenge o Feeding 9 Billion People http://www.sciencemag.org/content/327/5967/812.ull#F3

On-Farm

Transport &Processing

Retail

Food Service

Home &Municipal


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key ACtiOnS tO tACkle fOOd wASte

ProgreSS

The ood and drink industry makes a signicant contribution to industrial symbiosis, which is when a residuerom one industry can be used as a raw material or another industry. This helps reduce agricultural pressureson the environment and supports the transition to a bio-based, low-carbon economy by acilitating partnerships,generating mutual value and improvements, and by creating cost savings and new revenue. WWF hasrecognised industrial symbiosis as one o the top 20 business innovations that benet the environment36.

Legal classication By-product (non-waste) Waste

Usability Can be used directly without anyurther processing other thannormal industrial practice.

Not suitable or direct urther use.May be used as secondary rawmaterial ater recycling or recovery.

Intention o the holder > Intention to exploit or marketthe material.

> Intention to discard the material.

Relation to the productionprocess > Produced as an integral part othe production process > Not produced as an integral part othe production process

Certainty o use > Further use is certain > Discarding takes place

Legislation > Fulls all relevant product,environmental and healthprotection requirements or thespecic use and will not lead tooverall adverse environmentalor human health impacts.

> Waste management (preparationor re-use, recycling, recovery,disposal) in compliance with wastelegislation.

Examples orm the oodand drink industries

By-products rom oodprocessing used in:

Animal eedFertilisersCosmeticsPharmaceuticalsBio-plasticsLubricantsBio-energy protection

The ollowing items i no longer usedby ood manuacturers:

PalletsCratesPlasticPaperMetalsWood

Figure 3: Overview o the criteria to distinguish between by-products and waste

(Article 5, revised Directive on Waste)


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Animal eed

In terms o overall volume, animal eed and pet ood accounts or the ood and drink industrys most important useo by-products, trimmings and other products that are not t or human consumption. Approximately 85 milliontonnes o by-products such as sugar beet pulp, maize gluten, brewers grains, oil rom soybeans, rapeseeds,sunfower seeds and other oilseeds and whey are used annually or animal eed. The EU compound eed industryuses approximately 60 million tonnes o by-products while the rest is used by armers.

Fertilisers

Several by-products can be used as bio-ertilisers, adding nutritional value to soil and providing armers with asustainable product that prevents the extraction o limited resources. Food processing residues are oten a goodsource o nitrogen, phosphorous and potassium. For example, digestate sludge rom starch plants and sugaractory lime, can be used to improve soil structure and reduce acidity.

Bio-based products

As a result o increased R&D, agricultural raw materials can be used to make several products including plastics,packaging, lubricants, detergents, ink, cosmetics and pharmaceuticals. Many by-products produced by theood and drink industry are also suitable or direct use as a renewable energy source due to their agriculturalorigin. Approximately 550,000 tonnes o atty acids, or example, are produced annually by the European oilseedprocessing industry. Oilseed processing generates oils and me

use sustainabilityreport ldfinal 11.6.2012

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