Munch Social and Sustainability Impact Report 2021

Sustainability & Social Impact Report 2021 munch cupboard ltd

background

Why report?

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Who are we

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What we believe

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How we fit with the rest of the world

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Our 6 sustainability and social justice commitments

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How will we know how we are going?

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Key measurement criteria:

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• Reducing life cycle impacts

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– Product stewardship

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– Packaging

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– Operations

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– Carbon emissions

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Supply chain transparency

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Three way decision making 10

Over the last 5 years we have seen a huge growth in consumers wishing to buy eco friendly and sustainably made products. Retailers are meeting this consumer demand by sourcing out eco products and stocking sustainable brands. However, in turn this has given rise to greenwashing and short term attitudes to capitalise on consumer interest. We believe it is essential to be honest, genuine, ethical and transparent so wholesalers and consumers really know what they are buying.

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Using organic material

This is our second Sustainability & Social Impact Report. We are proud to show the public what we do. We always premise our actions on being transparent and this report takes this further. We are committed to continually improving as we grow and learn.

• Positive change

OUR LITTLE BIT

Sustainability is a concept which has grown in significance and popularity over the last twenty years, as governments, businesses and the public become increasingly aware that we can no longer continue to function as if the Earth’s resources are infinite. We know that we must change our behavior in almost every aspect of our lives and work so the natural and built environments, and ecosystems which our lives and economy rely on, will be there for future generations.

The United Nations (UN) is an intergovernmental organization that has many tasks, including fostering cooperation between nations to solve economic, social, cultural and humanitarian problems. The UN has established some key environmental and social sustainability goals — the Sustainable Development Goals (SDGs) — which are ambitious, but if we all play a part then as a human group we will be able to create change on our planet.

Munch Cupboard Limited is playing a part in changing consumer behavior and developing more sustainable manufacturing methods in New Zealand.

We are making locally and thinking globally.

We are eco leaders in the kitchen and bathroom product arena. We are socially ethical and operate sustainably. We are a social enterprise and being ecologically sustainable is just one of our social impacts.

It is our belief that social justice goes hand in hand with sustainable ideals and goals. Workers deserve to be paid fairly throughout the supply chain.

Also some profits must be reinvested back into the community we draw from.

I have always had a strong belief in the importance of contributing to our community and to our planet.

Anna Bordignon LLB, BA, MBA Founder/Director

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CONTENTS

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• F air labour

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– Living wage

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– Empowering women

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– Advocacy

– Community

Our projects Looking ahead Conclusion

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why report?

what we believe

This report is a blueprint for the sustainable and social impact goals of Munch Cupboard Limited. We offer complete transparency into our business. By reporting on our progress and what we are moving towards we hope to inspire others to do the same.

Until there is a regulated body to monitor what companies say about eco and social efforts, we believe it is important to be transparent and back up claims we make around our work in the areas of sustainability and social justice.

We are committed to our business having a positive impact on the world. We want to leave the world a better place for our children. To do this we:

who are we

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supply quality products that last and have as small an environmental impact as possible

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empower our local home-based workforce, by providing flexible and fair work opportunities

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give back to our community

Every decision is based on social, environmental and economic considerations

We are a New Zealand social enterprise eco company. We were established in 2014 and wholesale our products to retailers in New Zealand, Australia, Canada, USA, United Emirate retailers.

Munch Cupboard Limited holds two brands being Munch and nil products.

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Nil products has a number of nil waste and nil harm beauty and bathroom products and kitchen lines.

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Munch is a lead brand in the kitchen arena and have over 65 products that fall into three product categories being Baby, Lunch and Kitchen.

‘We have not inherited the earth from our ancestors, we are borrowing it from our children.’

munching the numbers

Recipient of: Sustainable Business Network award 2020 EY Winning women 2019 Gold Awards Wellington winner 2019

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how we fit with the rest of the world New Zealand is a small nation but we lead the world in many areas of sustainability and environmental stewardship including Zero Carbon legislation. Our country has a fantastic reputation for designing and producing high quality sustainably made products. We want to continue this reputation and to lead the way in product innovation.

‘Making locally, thinking globally’ To assist in preserving our planet’s precious resources we need to ensure that we fit with some of the world wide sustainability goals. We have chosen to consider the United Nations Sustainable Development Goals (SDGs) as a foundation for what we are trying to achieve.

In particular at Munch Cupboard, we contribute to the following SDGs: Goal 3: Good health and wellbeing Goal 8: Decent work and economic growth Goal 12: Responsible consumption and production Goal 13: Climate action Goal 17: Partnerships for the goals

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our 6 sustainability and social justice commitments

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reducing life cycle impacts

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Considering the full life cycle impacts of our products and materials which includes re-using, re-purposing, recycling and being a leader in product stewardship

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Considering the full life cycle impacts of our packaging Reducing our environmental impacts as much as possible in our general operations Measuring and managing our carbon footprint and offsetting those emissions we are unable to avoid

supply chain transparency

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Confirmation from all our suppliers about their employment, environmental and sourcing practices

three way decision making

• Applying environmental, social and economic principles to all parts of our decision making organic material

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Use organic and sustainably sourced materials in our products wherever possible

fair labour

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Empowering women Grow our New Zealand home based workforce where possible and pay at least a living wage

positive change

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Being a voice and leader for positive change Giving back to our communities

‘The greatest threat to our planet is the belief that someone else will save it.’ munch cupboard

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how will we know how we are going?

We have established some key criteria for our commitment areas so that we can measure the progress we are making. These cover both environmental and social impacts. We will report on them bi-annually.

key measurement criteria The following are measures for our 6 Sustainability and Social Commitments which we will use to provide insight into how we are going against our commitments.

For each commitment we have set targets for the current two year period and goals which we are aiming for over a longer term.

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reducing life cycle impacts We make eco products. However to ensure that we can claim that we make eco products we need to consider the life cycle of those products. Not only the product itself but how it is packaged, how we operate around that product and the carbon emissions. In this section we have set out our goals and measures under the following headings:

• PRODUCTS – Considering the full life cycle impacts of

our products which includes re-using, re-purposing and recycling. We are product stewardship leaders.

• PACKAGING – Considering the full life cycle impacts of our packaging

• OPERATIONS – Reducing our environmental impacts as much as possible in our general operations

• CARBON EMISSIONS – Reducing our environmental

impacts as much as possible and offset those carbon emissions that we are unable to avoid.

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PRODUCT STEWARDSHIP Plastic waste is a huge problem for our planet. Our lives are busy and our culture has become ‘take-more-dispose’ society where product stewardship is given little thought. Product Stewardship means ‘whoever designs, produces, sells or uses a product takes responsibility for minimizing the products environmental impact throughout all stages of the products life cycle including the end of life management’.

Plastic is destroying our planet, hurting wildlife and polluting ecosystems. Microplastics are impacting on human health and have been found in the food chain. Traditional plastic takes a long time to break down and will leave behind toxic micro fragments.

It is estimated that by 2050 half of the planet will be filled with plastic. Just 14% of global plastic is recycled.

So how do we help solve these problems? The solution is moving towards a circular economy and using eco loop manufacturing processes. Many of our products create a circular process. We choose to make products with naturally biodegradable materials when we can, or materials that have a long life and can be fully recycled. If they aren’t recyclable in a city service, we take back products to upcycle or re-purpose.

Cotton

Repurpose waste for other products

Bamboo

Process recycles water and other aspects

ORGANIC COTTON

Fertilizer for land

BAMBOO RANGE

Munch organic cotton products

Compost

Rice

Sand Rice husk

Fertilizer for land

Biodegrade in compost

Munch toothbrush and brush ware

Recycle

RICE HUSK RANGE

GLASS DRINK BOTTLES Munch eco glass ware

Munch eco hero baby products

Silicone Moulded

Silicone Send Back scheme

SILICONE RANGE Munch baby lines

We commenced our Silicone Send Back scheme mid-2021, establishing over 20 community collection points for post-consumer food grade silicone products to be repurposed.

90% of Munch products don’t need to go to landfill at end of life target: Consistent 90%

goal: 100%

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PACKAGING It is one thing to create eco products but how you package those products must be considered carefully as well. These days many products are wrapped in poly bags or some form of plastic. When one takes the wrap off the product it is more than likely thrown into the rubbish bin. Plastic wrap has it’s advantages that it is a cheap way to wrap a product. It is also an easy way to keep a product clean and it enables consumers to see a product while still being protected.

Unfortunately the products we import are wrapped in poly bags which are a customs requirement. We look forward to regulatory changes in this area. We are moving more of our products into recycled certified cardboard packaging. Also we are working to educate our Retail partners about supplying products without packaging.

80% of our products are packaged in certified biodegradable cardboard target: 100% of products packaged in certified biodegradable cardboard. goal:

20% of products sold without packaging.

Continue 100% products that must be packaged to be in cardboard that is produced with at least 75% recycled content and is certified biodegradable cardboard.

80% to be locally sourced.

OPERATIONS We would be hypocritical if we only considered the sustainable nature of our products without how sustainability fits with our general operations. There are many ways that companies can limit their operational waste. We have a number of processes that we will implement over time to keep moving us towards a waste free operation.

Our stockroom and business offices all have waste bins. We estimate that only 90Kg of landfill waste per year is from direct operations.

If we do need to print on paper we print double sided. We use and source products that are committed to recycled biodegradable and ethical sourcing. All our people use reusable coffee cups or smoothie jars, reusable straws, produce bags, bamboo toothbrushes and beeswax wraps. Half of our people bike to Head Office. All our homebase workers create no carbon waste as they do not need to use transport to get to work.

Overall we are 70% towards being a wastefree operation target: 100% of our people bike to Head Office. 100% of people use reusable or biodegradable personal items on a daily basis. Keep our landfill waste at 100kg or less, annually. goal:

Be 100% wastefree by using all parts of our waste.

‘I love Munch products and what Munch stands for.’

P. Shand, customer

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CARBON EMISSIONS The increasing levels of carbon dioxide and greenhouse gas emissions into the atmosphere has primarily come from the burning of fossil fuels, oil and coal and is harmful to our planet causing global warming and a climate emergency. The best practice is to reduce the use of these fuels, moving to electric vehicle transport and other modes. While carbon offsets can be purchased in an attempt to make up for these harmful effects these will not be enough to reduce the level of carbon dioxide in the atmosphere. The Paris Agreement is a legally binding international treaty on climate change, which most nations are part of — with an international goal of limiting global warming to below 2 degrees Celsius, compared to pre-industrial levels. In order for the world to meet this goal, we will all need to play our part.

At Munch we measure our carbon emissions annually and are working to reduce them as much as we can.

We can offset the emissions we are unable to avoid. We have calculated our carbon emissions through Ekos, a certified carbon emissions body based in New Zealand. Our company car is electric which reduces our emissions. We also travel less and use Zoom meetings.

We will focus on the following to further reduce our carbon emissions:

• Seek out renewable materials and innovative processes that require less energy and make more products •

locally when possible Reducing freight emissions by consolidating our International suppliers; use a single shipping container for Munch Cupboard when possible and avoid using air freight

We are working towards offsetting our carbon emissions target: Reduce 8.074 tonnes of CO2 emissions to 5 tonnes. goal:

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Continue reducing our carbon emissions by 10% each year.

supply chain transparency The origins of manufactured products has been very murky in the past, beyond the supply chain functions, virtually no one cared how or where products were made, however now consumers, governments and companies are expecting to know details about the systems and sources that deliver the goods. It has come out of the failure around quality, safety, ethics and environmental impacts of the past. Provenance is a now a big deal and becoming more important every day.

To date we always seek food safe certifications, organic certifications and ask directly how workers are paid/treated.

We have developed a Supplier Code of Conduct that outlines our standards and the specific questions we ask all Suppliers. We will also work towards the United Nations Global Compact and world first guide on traceability. To date 100% of our Suppliers have been asked these questions.

We will look to obtain online systems for online-verification codes to consumers for our nil Organic Beeswax Wraps and our nil harm wool beauty range, along with how this is balanced with our packaging and cost at this point in time.

‘Giving online-verification codes to consumers is a fairly simple way to make supply chain transparent’ Harvard Business Review.

In 2021 we will become a FWD Certified supplier — a social procurement directory of suppliers in New Zealand.

100% of suppliers questioned and we obtain transparency codes target: Obtain transparency codes. goal:

All Suppliers meet our standardised Supplier Code of Conduct and globally recognised best practice certifications, and codes obtained for all relevant products. munch cupboard

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growth

3 social I environmental I economic

three way decision making We believe in the triple bottom line which is an accounting framework with three parts being social, environmental and financial. In traditional business accounting the bottom line is used which refers to profit or loss at the very bottom line on a statement of revenue and expenses. However the triple bottom line framework allows a full cost accounting into reporting. To date all our decisions are based on these pillars.

However we would like to measure each one equally to make sure we are keeping a balance between them.

Evenly use the triple bottom line target: Regular reporting is set up, measuring the three factors: social, environmental and financial. goal:

All three factors are equally balanced in our company outputs, showing in our triple bottom line impact reporting.

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organic material The main benefit of organic cotton is that the crops are not treated with pesticides, insecticides, herbicides and genetically modified organisms. These toxins are harmful for farmers and workers, consumers and the entire wildlife eco systems. Conventially grown cotton uses more insecticides than any other crop in the world. It is estimated that each year cotton producers use as much as 25% of the world’s insecticides and more than 10% of the worlds pesticides, an incredible amount for just one crop. Also organic cotton uses far less water. However less than one percent of all cotton grown is organic.

The majority of the Munch and nil cotton range is made from GOTS certified organic cotton.

Our GOTS Certified organic cotton is sourced from a certified Fair Trade organisation in India. We commission talented Australasian artists to produce unique fabric prints used exclusively for our brands.

Majority of all Munch and nil products made from GOTS certified organic cotton target: 99% of all Munch and nil cotton products are made from organic cotton. goal:

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100% of all Munch and nil cotton products are made from organic cotton.

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fair labour LIVING WAGE Our people are the backbone of our organization. We have passionate, purposeful people who love working for Munch.

20,000 hours this year are worked by home based workforce on the living wage.

We believe in the living wage. All people should be paid fairly, should have a safe working conditions, and be treated with respect. Our people are our family.

EMPOWERING WOMEN Many of our products are made in New Zealand by women who are in need of work. So we bring work to them. We work with groups of mums in some of the poorest areas in Wellington and Auckland to have many of our products made.

This in turn gives these women an income and the opportunity to be part of a purposeful company.

We also offer flexible work practices to ensue our women spend time with their children as we value the attachment bond between parent and child. We also look to ensure our people are connected with their communities and families. We encourage our people to attend school performances or sports games. We want our people to only work school hours. We view all our people holistically, which means we understand their other needs outside of work to enable us to fairly treat them while at work.

100% of staff on living wage and above (includes permanent and contractors) target: Living Wage Accreditation and grow workforce. goal:

Living Wage Accreditation and 40 home workers.

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positive change ADVOCACY We believe it is part of our role to educate and advocate for correct and important information on environmental and social impact issues. There is a lot of misinformation and greenwashing in our sector. To stay relevant we must keep up to date with new ideas and common misconceptions and where possible use our position to educate the public.

We take part in Expos where we talk with consumers about the eco products industry and how using our products can help address a variety of sustainability problems. We also attend many festivals and general events. We also hold speaking seminars on environmental and social issues and partner with others to offer consumer education. We also educate through all our online channels.

We also seek to learn from and amplify the voices of Indigenous people in our region, particularly their knowledge of sustainability and environmental stewardship.

Where relevant we submit on issues and consultations with Central and Local Government.We are also members of a number of advocacy groups such as the following:

• Sustainability Business Network • NZ Food and Grocery Council • Buy NZ Made • Wellington Chamber of Commerce • EO Organisation • Textile Reuse Programme • B1G1 Community COMMUNITY

• By being part of B1G1 community we reinvest some funds back to the community worldwide.

• We also give back 20% of all revenue to schools who fundraise with us.

• We run sustainability school each Friday morning for primary school children. target: Lead more speaking events to share our knowledge in sustainable and eco product innovation and product stewardship goal:

Be the leader in social and sustainable business

‘Anna and Munch have given me the opportunity to work as I am a solo mum with 2 young kids. Munch is my family and I love how Anna leads by example and wants us all to be part of the Munch dream but at the same time enables us to be there for our own families.’

— Michelle, Munch team member

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our projects WORKING WITH COMMUNITIES We love working with our local communities through work placements and general advocacy work. We are strong believers that if you wish to give, you should start in your own backyard.

We work with many community leaders through education and provision of work. We run a sustainability school each week at our Wellington showroom for primary age children at the local school.

PRODUCT INNOVATION WITH NEW SUSTAINABLE MATERIALS We seek out local and biodegradable alternatives (such as pure wool for nil beauty tools). Our team create new innovative product designs that solve the problem of single use and plastic products.

ETHICAL WASTE FREE FUNDRAISING We offer ethical fundraising with over 50 schools. Our ethical fundraising is child led, local, community and environmentally focused and educationally fun. We provide teaching units to help educate on how to create a waste free environment. We also give our products free of charge to charity events. We believe if we educate our children, they will in turn educate the world.

EDUCATION WORK We work closely with Kate Meads who is a strong environmental advocate, we provide products under both our brands for her Waste Free Cooking and Waste Free Parenting sample bags. We are also an active member of the Textile Reuse Community, the Sustainable Business Network in New Zealand, and other similar groups.

looking ahead We will continue to grow our business so we can at the same time build on our social impacts. In the last five years we have come a long way but there is still work to be done. We want to continue to lead the way in the social enterprise field. We are purposeful, ethical and sustainable.

We are working towards a number of projects as follows:

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Silicone repurposing project to become a successful ongoing recycling process with our partners.

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Continue to seek out better materials that are naturally biodegradable or circular eco-loop process and be a leader in product innovation in our core consumer categories.

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Increase fundraising with schools towards zerowaste

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Expand our market presence in all our existing countries.

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Educate the market to keep moving our products to mainstream.

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Moving towards a certified B Corp organisation.

Become an accredited Fwd supplier.

SILICONE SEND BACK We are committed to creating products that don’t end up in landfill and with an ultra low impact on the environment. We are the first Australasian company to take back silicone for repurposing. This pilot project will grow over the next two years.

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in conclusion We see the continual growth in sustainable practices as more companies and people demand it. Our planet needs everyone to make a little change. We will keep working on our practices to help show the way to be a sustainable, waste-free and carbon friendly company. The important part that we can play is to be the leader in this field and ensure that all our decision making is premised on our 3 pillars being social, environmental and economic. We will report every two years on the impacts we make and our progress towards being a truly sustainable and socially responsible company.

‘An investment is not an investment if it destroys our planet.’

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munchcupboard.com

nilproducts.com

we are making locally, thinking globally

info@munchcupboard.com I hello@nilproducts.com I 021 665 061