Unilever’s Sustainability Efforts Top Food and Beverage Sector
Two Tomorrows, an international sustainability consultancy, rated the sustainability efforts of the world’s 10 largest companies in the food and beverage sector, and Unilever came out on top.
The new Tomorrow’s Value Rating has Unilever in first place, Nestle in second and Danone in third. Rivals Pepsi and Coca-Cola are in fourth and fifth places respectively.
The complete results are available here.
Unilever won points for its comprehensive sustainability strategy that Two Tomorrows says is based on stakeholder feedback, governed by the company’s senior leaders and underpinned by solid management systems. Unilever has shown leadership on reducing GHG emissions and water use, and it also was an early supporter of fair trade and sustainable palm oil initiatives.
Interestingly, in its discussion of the results, Two Tomorrows points out that companies are paying more and more attention to their supply chains as they step up their sustainability efforts to meet the challenges of a changing global economy. For instance, the report signals out Nestle for its supply chain management approach:
Nestlé purchases most of its dairy, coffee and cocoa directly from more than 660,000 suppliers. Taking intermediaries out of the picture results in financial benefits, better traceability and enhanced long-term security of supplies, and improves Nestlé’s ability to influence suppliers’ farming practices and working conditions. The company works with partners like the Rainforest Alliance and national authorities on improving farmers’ use of water resources and on strengthening rural access to clean water and sanitation. All these initiatives seek to create ‘shared value’ as Nestlé describes it – ensuring quality supplies while benefiting sourcing communities. They will also put the company in a strong position when the effects of climate change and overpopulation start impacting commodity prices.
As part of the growing number of issues facing supply chains, the report also predicts that food waste, chemical additives and operational water use will be gaining importance on the corporate agenda in this sector.
