Stonyfield's enterprise product carbon footprint journey

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1 Stonyfield's enterprise product carbon footprint journey Mary Fischer, Carbon Master December 11, 2012 (c) Stonyfield Farm, Inc. All Rights Reserved 1

2 About Stonyfield Founded in 1983 with an environmental mission business can be sustainable and profitable <500 employees 120,000 tonnes product/yr Nation s leading organic yogurt maker Parent company is Groupe Danone (France) (over 100 BUs & Carbon Masters) (c) (c) Stonyfield Stonyfield Farm, Farm, Inc. Inc. All All Rights Reserved 2

3 Upstream Milk Impacts Sustainable Ingredients Sustainable Packaging Nature Pillar MAP operationalized in our manufacturing pillar program Green Chemistry Water Facility GHG Emissions Zero Waste Manufacturing Transportation Stonyfield Walking Our Talk (SWOT) other internal operations Downstream (c) Stonyfield Farm, Inc. All Rights Reserved 3

4 Began tracking key impacts Stonyfield s History of Environmental Accounting 1 st footprint of facility energy Danprint Annual reduction targets Third Party Eco-Audits 1 st Product Carbon Footprint Packaging LCAs PLA LCA Integration of Danprint into SAP (c) (c) Stonyfield Stonyfield Farm, Farm, Inc. Inc. All All Rights Reserved 4

5 Danprint Excel PAS 2050 & ISO Extrapolation 11 SKUs, 12 files, 2x/yr 60 tabs, 7 MB/file No checks (c) (c) Stonyfield Stonyfield Farm, Farm, Inc. Inc. All All Rights Reserved 5

6 Why apply Danprint to every product? (c) (c) Stonyfield Stonyfield Farm, Farm, Inc. Inc. All All Rights Reserved 6

7 2010: Danone presents a new tool The idea: leverage existing ERP & improve the process Fewer users necessary for data collection All materials & products included Only 20% of data entered manually ¼ FTE/year for data maintenance Improved reporting capabilities Simulation for carbon reduction projects 80 man days for transition Ongoing support from Danone & other Carbon Masters (c) (c) Stonyfield Stonyfield Farm, Farm, Inc. Inc. All All Rights Reserved 7

8 How it Works Production Order - YoToddler Organic milk ingredients Organic strawberry purée Organic banana purée Organic oat flour Organic flaxseed concentrate Organic rice flour Organic oat bran Vitamins, minerals, natural flavors, pectin Naturally milled organic sugar Packaging Weight (kg) a b c d e f g h i j (c) Stonyfield Farm, Inc. All Rights Reserved 8

9 How it Works Carbon tool Emissions Factors End of Life Logistics Energy use Etc. Pre-populated Data 3 rd party vetted & approved Ecoinvent Plastics Europe US EPA, Wisard Internal/ other Fruit & milk data CO 2 e Carbon results, absolute & per tonne (c) Stonyfield Farm, Inc. All Rights Reserved 9

10 Lessons Learned 2011: Data collection & populating the tool Danonesupplied training Collect data & upload Tests & gap analysis Develop work - flow tool Train staff Go live Tailor training to your own staff Focus on data quality before quantity Work with internal subject/ area experts Budget extra time Don t be afraid to question methodology Account for all necessary data management Legacy, new materials, new products, reformulations, etc. Get buy-in from management Establish reporting & tracking system Ongoing support is crucial (c) Stonyfield Farm, Inc. All Rights Reserved 10

11 Today: Training & Deployment Within Stonyfield Business Solutions SAP Master Data Engineering Carbon Master Analysis/ Monthly report Executive Team Logistics Procurement (c) Stonyfield Farm, Inc. All Rights Reserved 11

12 Data that only Danone controls Reporting through an outside tool (c) Stonyfield Farm, Inc. All Rights Reserved 12

13 Outside boundary Energy Simplified Carbon Footprint Systems & Boundary Fruit & Vegetable Production On and off-farm Danone fruit tool Milk Production On and off-farm Danone milk tool Fruit preps, sugars Milk Packs Offsite Storage Losses from transport, spoilage Home & retail waste & storage EOL Packaging Production Solid waste Losses Pig food Anerobic digester Orange line = transport footprint included Fertilizers for animal feed Energy from water treatment/deliv. Capital equipment Glue, ink, dye, etc. Consumables Employee transport Milk/fruit losses on farm Ingredient packaging Anything else not in the cup (c) Stonyfield Farm, Inc. All Rights Reserved

14 Greenhouse gases emissions: origin in % 32oz Low Fat French Vanilla End of Materials Production Logistic Retail/ home Life Milk production 31.2% 0.3% Dairy ingredients production 20.3% 0.2% Other raw materials 2.7% 0.0% Packaging 9.9% 0.0% 0.7% Danone site 3.1% Energy production 7.6% Upstream logistic 6.4% Downstream logistic-transport 7.7% Downstream logistic-transport Danone 0.0% Downstream logistic - storage 0.0% Downstream logistic - storage Danone 0.7% Storage at retail 6.8% Storage at retail- Danone 0.0% Storage at home 0.3% Losses of finished product 2.0% Total 64.1% 11.2% 14.9% 7.1% 2.7% (c) Stonyfield Farm, Inc. All Rights Reserved 14

15 kg CO2eq/tonne Stonyfield s Carbon KPI YTD Target Raw material losses at the plant Perimeter Rd. Energy Shipping Burton Dr. Energy Office Energy +10% Due to higher electric usage higher average temp necessitates greater cooling; consider increasing office temp Losses +15% Packaging, fruit preps and NFDM usage Plant Energy -8% Re-programming of controls at IPF which allows more energy to be generated by the CHP unit. Shipping +10% April miles up about 7% combined with lower tonnes. (c) (c) Stonyfield Stonyfield Farm, Farm, Inc. Inc. All All Rights Reserved

16 Our Product Footprint Danone 2011 Sustainability Report (c) Stonyfield Farm, Inc. All Rights Reserved 16

17 Stonyfield vs. Other Foods Source: Environmental Working Group, ewg.org Greek yogurt Average Stonyfield Dole Bananas Tropicana OJ Coca Cola (c) Stonyfield Farm, Inc. All Rights Reserved 17

18 Looking ahead Expand internal KPI to rest of footprint Integrate water footprint Connect to financials Labels? Sales tool? (c) Stonyfield Farm, Inc. All Rights Reserved 18

19 Why we do it Stonyfield s environmental mission Leadership in taking responsibility Ability to diagnose problems & find solutions Silo-smashing platform Deepen consumer faith in our brand (c) Stonyfield Farm, Inc. All Rights Reserved 19

20 Lessons Learned Compare tools: Regulatory tool management tool One solution doesn t fit every business Plan the purpose for your data early on Work with internal subject experts during implementation Smash those silos! Tailor training to your own staff Budget extra time Validate that reporting, tracking systems are in place Account for all necessary data management Focus on data quality before quantity Don t be afraid to question methodology (c) Stonyfield Farm, Inc. All Rights Reserved 20

21 Carbon footprinting is part of an evolution Questions? Thank you Mary Fischer Carbon Master (c) Stonyfield Farm, Inc. All Rights Reserved 21

22 BACKUP (c) Stonyfield Farm, Inc. All Rights Reserved 22

23 Milk Footprints (kg CO2eq/tonne) Skim Condensed Cream Powder (c) (c) Stonyfield Stonyfield Farm, Farm, Inc. Inc. All All Rights Reserved 23

24 Diffrences Between Organic & Natural (c) Stonyfield Farm, Inc. All Rights Reserved 24

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