SUSTAINABILITY: PART 2

GOING GREEN

Companies examine the challenges, opportunities, and importance of creating a sustainable future for their business and the planet, writes Thomas Oakley-Newell.

Following the interest in the sustainability feature in our December/January issue, C&I has decided to continue to talk to companies about the methods in which they are attempting to create a more sustainable, greener future for their business and the planet.

Businesses and their sustainability models and targets are now being seen not as something companies can choose to be a part of, but as a necessity in ensuring the longevity of the world we live in.

Across the world, we are witnessing the effects of climate change and businesses are starting to take notice by implementing procedures that lessen the impact their model has on the environment.

KEY COMMITMENTS

PepsiCo has launched initiative PepsiCo Positive, which Colin Matthews, APAC Sustainability and ANZ Engineering Director at PepsiCo, said is the company’s strategic end-toend transformation with sustainability at the centre of how the company will create growth and value by operating within planetary boundaries and inspiring positive change for the planet and people.

Colin Matthews, APAC Sustainability and ANZ Engineering Director, PepsiCo.

PepsiCo Positive will drive action across three key pillars – positive agriculture, positive value chain, and positive choices, which are outlined by Matthews.

“PepsiCo is working to spread regenerative practices to restore the earth across land equal to the company’s entire agricultural footprint (approx. seven million acres), sustainably source key crops and ingredients and improve the livelihoods of more than 250,00 people in its agricultural supply chain.”

The PepsiCo Positive value chain will help build a circular and inclusive value chain. In 2020, PepsiCo committed to transitioning to 100 per cent renewable electricity globally by 2040 – PepsiCo ANZ is committed to 100 per cent renewable electricity by the end of this year.

By the end of 2022, consumers in Australia will also be able to recycle all their PepsiCo snacks packaging via their home curb side recycling bin for cardboard and plastic trays and REDcycle collection bins for soft plastic packaging.

“PepsiCo continues to evolve its portfolio of food and beverage products so that they are better for the planet and people. Last year, PepsiCo ANZ launched Smith’s Baked – a chip with 50 per cent less fat when compared to our Crinkle Cut potato chips. And in 2019, we moved from palm oil to Aussie grown canola, removing 1,700 tonnes of saturated fat from Australia’s food supply per year. Seventy per cent of our snack portfolio complies with our goal not to exceed 1.3mg of sodium per calorie,” Matthews said of PepsiCo Positive choices.

Another company committed to bringing about change is Mars Petcare, whose key commitments include reaching Net Zero emissions by 2050, sustainably sourcing its ingredients, 100 per cent of its plastic packaging to be reusable, recyclable or compostable by 2025, as well as a social mission of increasing access to food, care, and homes for pets in need.

Marika McCauley Sine, Global VP Sustainability, Mars Petcare said the company is on a mission to create a better world for pets, the planet, and people by bringing even more innovative, sustainable choices and services to pet owners around the world.

“We are transforming the way we work, from how we source raw materials like fish, beef and soy to our own operations – all with the aim of helping people and the planet thrive. At the same time, we recognise that addressing these issues is a generational challenge, which is why we are building lasting partnerships with NGOs, governments, and industry to help transform systems at scale.”

Now more than ever consumers are aware of the interconnected nature of our food system – its impact on our planet, its support for our communities and its ability to provide nourishment.

- Colin Matthews, APAC Sustainability and ANZ Engineering Director, PepsiCo

McCauley Sine said since 2017, Mars Petcare has played a leading role in the Cool Soil Initiative, which by 2023 aims to increase soil health and improve farm resilience across 700,000 hectares of land in north-east Victoria and southern NSW.

FACING CHALLENGES

Many companies have now announced emission reduction pledges and environmental goals, with these targets not only reducing their impact on the environment but increasing their reputation in today’s society.

A growing number of consumers now demand that products are created in an environmentally sound manner, so it leaves the question, can companies afford not to have a public sustainability roadmap?

“Now more than ever consumers are aware of the interconnected nature of our food system – its impact on our planet, its support for our communities and its ability to provide nourishment. Drastic shifts such as climate change threaten the health of our planet and communities and present challenges for our business. As a company that sources crops from over seven million acres of farmland in 60 different countries, PepsiCo has deep roots in the global food system,” said Matthews.

By PepsiCo adopting these sustainability initiatives it will make the company better, faster, and stronger in the long run, according to Matthews.

“Working to transform the way we create shared value by operating within planetary boundaries and inspiring positive change for the planet and people will make us a better company, with purpose more deeply integrated into our business strategy. It will also make us faster and stronger, enabling accelerated growth and continued investment in our people, business and communities.”

McCauley Sine said Mars Petcare is noticing a growing interest in sustainable products and services among pet owners.

Mars Petcare is noticing a growing interest in sustainable products and services among pet owners.

“Take alternative proteins as one example. According to a recent RaboResearch report, demand for insect protein as an ingredient in pet food could hit half a million tons by 2030, up from 10,000 tons today. In fact, our own survey of 1,500 cat owners across the United Kingdom found nearly half (47 per cent) would consider buying insect protein.

“In 2021 we launched Lovebug, the first insect-based cat food in the UK. These insects are grown on a farm that runs on 100 per cent renewable electricity and they are fed on 100 per cent surplus veggies and plants, reducing food waste.”

FOR THE FUTURE

While we are already experiencing the effects of climate change right now, it will only get worse if nothing is done about it. These companies, amongst others, are taking steps that many governments are not.

“We believe that there is an opportunity to change how the world produces, distributes, consumes and disposes of foods and beverages to tackle the shared challenges we face. We aim to use our scale, reach and expertise to help build a more sustainable food system; one that can meet human needs for nutrition and enjoyment, and continue to drive economic and social development, without exceeding the natural boundaries of the planet,” said Matthews.

To generate and drive innovation surrounding sustainability, Coles created Coles Nurture Fund, a fund which provides grants of up to $500,000 to small business to develop new marketleading products, processes, and technologies.

Since its inception in 2015, the Coles Nurture Fund has provided over 80 businesses with more than $28 million in financial support to help them introduce ground-breaking technology, establish new products, and drive innovation and sustainability.

Sally Fielke, General Manager Corporate Affairs, Coles, encouraged businesses with fewer than 50 full-time employees and turnover of less than $25 million in annual revenue to apply.

We are transforming the way we work, from how we source raw materials like fish, beef and soy to our own operations – all with the aim of helping people and the planet thrive.

- Marika McCauley Sine, Global VP Sustainability, Mars Petcare

“At Coles, we aim to drive generational sustainability in Australia and one of the ways we believe we can do this is by funding innovative projects which make a significant difference – whether it’s increasing recycling and renewable energy, reducing water use or supporting the local production of Australian food and beverages.”

Past projects funded by the grants include Australia’s first quinoa processing facility, fence posts made from recycled plastics, and a state-of-the-art factory to grow grass indoors.

NSW agricultural businesses, Sawmill Circuit, was the beneficiary of a $455,000 grant in 2021, which allowed it to purchase a vacuum truck to collect manure from 18 dairy farms in Nowra so it can be transported to a biogas plant being built in the area and converted to renewable energy.

David Ryan of Sawmill Circuit said the support they received from Coles Nurture Fund will make a significant difference to the way in which dairy farms in the Nowra area manage effluent and encouraged other producers to apply if they needed funding for a unique or ground-breaking idea.

As part of PepsiCo introducing regenerative practices, Matthews explained that in South Australia, Mark Pye, who has been supplying potatoes to PepsiCo, which sources 100 per cent of its potatoes sustainably, has implemented an impressive composting system on his 600-acre farm.

“The composting system utilises waste to enhance the soil the potatoes are grown in. The compost (a mixture of wood, fibrous material, manure, straw, and water) is made on site with large mounds scattered across the farm that are managed closely – the compost is ‘cooked’ and turned at just the right time to ensure its efficacy. When added to soil the compost delivers nutritional, conditioning and water holding capacity benefits that result in higher yields and increased crop uniformity.”

McCauley Sine said Mars Petcare being family-owned allows it the independence to think in generations, not quarters, so they can invest in the long-term future of the business, its people, and the planet.

“Take renewable energy for example. There is a significant timescale involved in these types of deals, some of which span multiple decades and territories across the globe – we approach them with a mindset of delivering societal impact and making financial sense. This ladders up to our Net Zero ambitions which we’re looking to achieve by the year 2050.”