Sustainable Agriculture Guidance Document

Transcription

1 Sustainable Agriculture Guidance Document March 2018

2 2 Kerry Group plc Sustainable Agriculture Guidance Document

3 Kerry Group plc Sustainable Agriculture Guidance Document 3 A rising global population and shifting consumption patterns are creating unprecedented demand for agricultural production, with estimates suggesting that up to 70% more food will be required by While this represents a significant opportunity for our industry, it also presents us with the difficult challenge of feeding the world s growing population while maintaining a healthy ecosystem and achieving a shared prosperity. Agriculture and land use change already account for 24% of global greenhouse gas emissions, 70% of freshwater withdrawals and is the largest single cause of deforestation. There are estimated to be over 500 million smallholder farms worldwide supporting 1.5 billion people. 60% of all child labourers work in agriculture and the highest incidence of workers living with their families below the poverty line is associated with employment in this sector 1. There is a clear and urgent need for a more sustainable approach to agriculture and as a global leader in the food and beverage industry, Kerry Group is committed to the sustainable intensification of food production. Under the Group s Towards 2020 programme we have identified the Marketplace as a key pillar for delivering on our sustainability ambition. A core element of our activities under this pillar focuses on reducing the upstream impacts of our raw materials through our responsible sourcing strategy. 1

4 4 Kerry Group plc Sustainable Agriculture Guidance Document Responsible Sourcing: As part of our responsible sourcing strategy, Kerry Group has identified the following strategically important raw material categories: Palm Oil Dairy Paper Packaging Meat Vanilla Beans Herbs & Spices Given our global footprint, we source these raw materials from suppliers located around the world. As a result, we are confronted by a range of different sustainability challenges that vary by commodity, region of production and production system. At present there is no universal agricultural standard or programme to address this complexity and so we must look for more creative approaches. As a company we do not own or operate any farms and are largely connected to primary producers through our supply partners. This presents a challenge for us in trying to impact on production practices at farm level. Therefore, we seek to work with customers, suppliers and industry partners to create a basis for collective action that can help to promote more sustainable agriculture. Objectives The objective of this guidance document is to set out the overarching principles that direct our responsible sourcing activities. Through the identification of high level impacts associated with different agricultural commodities, we seek to focus our efforts on improvements in priority areas. We understand that

5 Kerry Group plc Sustainable Agriculture Guidance Document 5 the issues and the methods for achieving progress will vary depending on the context and we do not prescribe a single best approach. Instead we look for commitments to measurable and continuous improvement that can be credibly verified. Our Requirements At a minimum, we expect suppliers to be legally compliant with all relevant laws and regulations and our Supplier Requirements Manual sets out the minimum requirements which must be met, including those laid out in the Group s Supplier Code of Conduct. Additionally, suppliers should have the necessary systems in place to meet our strict quality standards and to provide traceability for raw materials supplied to Kerry Group. The following principles are designed to complement the above requirements and they outline the areas of focus for our engagement with stakeholders. Human Rights At Kerry we are committed to the highest standards of ethical business practice and the Group s Code of Conduct details the standards we demand within our business. We also extend requirements on key issues like child labour, pay, harassment and discrimination into our supply chain through the Group s Supplier Code of Conduct. We expect all suppliers to adhere to these requirements and ensure that workers involved in the production of our raw materials are respected and treated fairly.

6 6 Kerry Group plc Sustainable Agriculture Guidance Document Environmental Management: Kerry Group has ambitious targets for reducing emissions, water and waste within our own operations but we recognise that many of the environmental impacts associated with our products can occur further up the supply chain, often at farm level. Continuous improvements in the following priority areas can help impact on the sustainability of the final goods which we produce: Energy & Carbon Improvements in energy efficiency and the adoption of practices that reduce Greenhouse Gas (GHG) emissions, including the use of less carbon intensive inputs such as artificial fertilisers. Water Greater efficiency in water use, particularly for crops in areas of high water stress and the adoption of measures that help to prevent pollution from on farm practices. Waste The prevention of food losses, the reuse of organic waste, a reduction in the use of non-recyclable materials and the responsible disposal of any waste produced. Soil The adoption of practices that maintain or improve soil fertility and productivity, increase soil carbon, minimise loss and erosion and management plans for the use of fertilisers and agrochemicals. Crop Protection The responsible use of agrochemicals in accordance with established best practice and as part of a broader Integrated Pest Management plan.

7 Kerry Group plc Sustainable Agriculture Guidance Document 7 Biodiversity Agriculture is heavily reliant on ecosystem services but it is often implicated in the loss of species and natural habitats. However, agriculture can play an important role in helping to preserve landscapes and protect species. At Kerry, we want the impacts of food production on biodiversity and ecosystems to be adequately considered, particularly by those operating in environmentally sensitive areas. Animal Welfare We are committed to safeguarding animal health and welfare and support the production of animal proteins in a manner that aligns with the internationally recognised five freedoms 2. We want to work with suppliers who are committed to good welfare practices and expect compliance with the requirements of the Group s Animal Welfare Statement. Farmer Income At Kerry, we are dependent on agricultural raw materials for the products we make and want to ensure that farming continues to be economically sustainable. We believe that it should offer a decent livelihood for farmers and their families and help to attract the next generation of producers. Communities We recognise the importance of agriculture in supporting local economies and the sustainable development of rural communities. To ensure continued development in a fair and balanced way, meaningful engagement with stakeholders is required on a range of issues including access to water, land tenure and the rights of indigenous peoples. 2

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9 Kerry Group plc Sustainable Agriculture Guidance Document 9 Implementation and Monitoring Our work in this area is directed by the Group s Sustainability Council, which has overall responsibility for Kerry s sustainability programme. The implementation of our responsible sourcing strategy in accordance with the principles laid out above is carried out by procurement and supply quality teams. We examine how best to achieve improvement at a category and regional level and continuously refine our approach. While certification can play an important role, we will also look at more direct involvement, as required. Where practical, we will seek to collaborate with industry partners to help ensure consistent requirements that minimise the burden on farmers and producers. More detailed information on our areas of focus are provided for in relevant category policies and statements. We aim to ensure the credibility of our programme and will report at least annually on the progress made in each of our priority categories through updates in our Annual Report and/or in our Group website com as appropriate.

10 Kerry Group Prince s Street Tralee County Kerry Ireland T: