Purchasing Forum - Tracey Rogers MD Unilever

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The issues around sustainability in business have long been a key focus of the hospitality industry. Waste management in the food production sector is a particularly controversial issue. Many in the sector are keen to improve or expand their company’s sustainability credentials, but are unsure of where to even being.In 2011 Unilever was named “Sustainability Leader” in the food producers sector of the Dow Jones sustainability index for the 13th consecutive year, so it was appropriate that the MD of Unilever, Tracey Rogers should deliver a well researched and informative presentation to a group of industry professionals.

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As operators within the hospitality and foodservice sectors, there are few who are unaware of the rising importance of sustainability as a key factor in a business model. More and more often we are seeing customer expectations rising in terms of corporate social responsibility.There are many avenues open to industry to improve their sustainability credentials, which perhaps not everyone is aware of.The Unilever Sustainable Living Plan is a key focus of the company. It looks at three broad areas
1.Health and well-being
By 2020 Unilever plan to help one billion people take actionto improve their general health and well-being
2. The environment
Unilever plans to reduce the environmental footprint of itsProducts and ingredients by 50%
3. Enhanced livelihoods
100% of all agricultural raw material will be sourced fromethical suppliers (an all the more impressive target considering this equates to 7.5 million tones and over 350 varieties)
One of the important points that Tracey raised was that regardless the size of the business, you are likely to need the advice, know-how and support of a specialist in order to make changes most effectually.

“One small change can have a big impact”

Waste management

Reducing food waste is one of the biggest challenges facing the hospitality sector. “Avoidable food waste” refers to that food which is thrown out before having been served to the customer – spillages; ends of meat; rotting vegetables; sour dairy produce etc. In the UK alone operators are binning around 4 million tones of avoidable food waste each and every year – a conservative estimate would place this at over £2 billion lost sales opportunity. So what can be done to limit avoidable food waste?

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Throughout the course of the presentation and subsequent question & answer session, there were many examples of how businesses are changing their own thinking and standards. One of the simplest was the idea that replacing black bin bags in a professional kitchen enables the kitchen manager/head chef to more readily see how much food waste is being placed in the preparation stages, thus enabling them to manage this more effectively. It’s also important to engage all employees at all levels with the business plan for sustainability. All stakeholders should be ‘bought in’ to the plan, from the CEO to the KP.Another option is to mimic an undertaking similar to the “United Against Waste Campaign”, which Unilever has launched in partnership with a number of other bodies including the Sustainable Restaurant Association. This campaign is targeting any and all opportunities within the business to reduce waste. It is also extended out to Unilever suppliers and partners to adopt into their businesses too.The benefits of controlling waste in a more efficient manner can be seen on more than just the bottom line of expenditure too. It’s clear that the consumer has come to expect more from industry.“Nearly 80% of people surveyed in the Western countries expressed concern about professional food waste and in the UK over 80% of people agree there should be more visibility about the sustainable practices of places to eat”

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Sustainable sourcing

“We can’t choose between growth and sustainability – we need to deliver both”

It is especially true in these difficult times that businesses are looking to cut costs, solidify their position in the market and eventually expand. However growth at any cost is simply no longer a viable or acceptable business model. Consumers demand more from industry – animals reared for human consumption should be humanely treated from birth to slaughter; reduced use of chemicals and pesticides in the growth of fruit and vegetables; ethically sourced cotton for bed sheets; energy efficient light bulbs and eco-friendly cleaning liquids are all expected as opposed to aspired to.Unilever is in the enviable position of being one of the largest companies in the World – but that also brings with it a certain level of responsibility which Tracey is keen to instill at all levels of the business.

“Because of the nature of our businesses we’ve a measurable impact on global forestry, water and bio-diversity. We have a responsibility to use this for everyone’s good”

Unilever have been true to their word:
  • In the last ten years 10% of the crops they use come from sustainable resources and by 2020 the plan is for all crops to be sourced this way.
  • pic4Hellmann’s mayonnaise is made only using free range eggs
  • PG Tips tea bags are 100% Rainforest Alliance certified
  • Palm oil is covered by Green Palm certificates
  • 80% of paper packaging is sustainably sourced
It would be fair to say that Unilever benefits from a somewhat larger than average engine with which to drive this campaign forward. Given that 2 billion times a day there is someone in the world using a Unilever product, the company is perhaps better placed to effect serious change. However it’s not always the big, bold moves which have the highest or hardest impact. It’s up to us all to do our bit.

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