Unilever is the latest food manufacturer to spruik its environmental credentials as it moves to source more sustainable raw materials such as the cocoa used to produced Magnum ice creams in Australia.
As consumers increasingly look to purchase socially responsible brands, the company, which presides over the Flora, Lipton, Bushells and Streets brands in Australia, said it was now sourcing more than a third of its agricultural raw materials sustainably.
According to the company, it has exceeded the interim milestone of 30 per cent it set itself in 2010 when launching the plan, and is on target to source 100 per cent sustainably by 2020 under its Unilever Sustainable Living Plan.
Marc Engel, Unilever's chief procurement officer said climate change, water scarcity, unsustainable farming practices, and rising populations all threaten agricultural supplies and food security.
“Half of the raw materials Unilever buys are from the farming and forestry industries, so ensuring a secure supply of these materials is a major business issue.
“However, sustainable sourcing is not only about managing business risks, it also presents an opportunity for growth, allowing brands to stand out in the marketplace,” he said.
According to Engel, 43 per cent of its cocoa was sourced sustainably by the end of 2012.
“In Australia and New Zealand, locally produced Magnum ice creams use cocoa sourced from Rainforest Alliance Certified farms in the chocolate coating used across the core range of Magnum products. Globally, 64 per cent of cocoa for Magnum was sustainably sourced through Rainforest Alliance certification,” he said.
To achieve certification, Unilever said it had been working with supplier Barry Callebaut to run farmer field schools with 20,000 small farmers across West Africa.
The schools work with local farmers to build skills and knowledge around sustainable cultivation practices. Then the farmers spread the knowledge through the community.
“Investing in smallholder farmers is critical: so far 450,000 have been trained. If smallholders have access to training, better quality seeds and fertiliser they can significantly increase their yields. We know we cannot do this alone which is why we are forming strategic partnerships with suppliers through our Partner to Win programme, NGOs and other stakeholders”, Engel said.
Unilever said it had made progress in sourcing other sustainable raw materials including palm oil, sugar and vanilla.
