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The only acceptable model for future growth

The only acceptable model for future growth

Orkla’s Sustainability Report 2013 now launched.

As the leading branded consumer goods company in the Nordic region, Orkla is committed to promoting a sustainable value chain. This is not just our responsibility – it also makes good business sense, says President & CEO Peter A. Ruzicka. Read more in Orkla's Sustainability Report 2013.

WHAT WE SEE

The global population now exceeds 7 billion people and is growing by 77 million every year. At the same time, climate changes are increasing in scale, causing extreme weather conditions in more and more parts of the world. The growth in population and consumption, combined with climate change, is putting increasing pressure on agricultural raw materials, fish and seafood. At the same time, consumer demands with respect to health, product quality, the origin of raw materials and the environment are steadily growing.

The trend that we are now seeing calls for a willingness to subject ourselves to critical scrutiny, and to engage in a dialogue on how we as a society can join forces to ensure healthy, safe and sustainable products for generations to come.

WHAT WE DO

We have identified four areas in which we exercise the greatest influence and where our efforts can contribute to a sustainable value chain.

Food safety: Being able to trust that the food we eat is safe is fundamental. Good food safety systems, uniformly applied, are therefore a top priority at Orkla. Safe products require a continuous, sustained effort, and we invest substantial resources every year in training, audits, quality control and improvement measures.

Nutrition and health: We are committed to developing healthier products, and have reduced the amount of salt, sugar and saturated fats in a variety of products in the past few years. Toro’s long-term efforts to lower the salt content in soups, sauces and casseroles are a good example of this focus. Since 1983, the amount of salt has been reduced in all of the Toro products, and in some of them it has been halved.

Responsible purchasing: We are committed to ensuring that the production of our raw materials does not lead to overexploitation of natural resources or breaches of labour or human rights. Our decision to use UTZ certified cocoa is a good example of responsible purchasing. In 2013, we reached our goal of buying 100 % UTZ certified cocoa for all Nidar chocolate. This means that the cocoa farmers in Côte d’Ivoire receive close follow-up, training in better agricultural practices and a higher price for their cocoa.

Environment: By improving energy efficiency, reducing water consumption and curbing wastage, we save costs while reducing the environmental impact of our operations. One of many examples of win-win environmental initiatives in 2013 is Orkla Foods Sverige’s investment in a production plant for plastic bottles. This is a profitable investment which will reduce CO2 emissions from the transport of bottles.

WHAT WE WANT

Although we are making progress, we must admit that much remains to be achieved. Nonetheless, the direction that we must take is clear: sustainable production is the only acceptable model for future growth. We want Orkla to be associated with good raw materials and safe products. We want to make products that are healthier and more enjoyable and that make life simpler for consumers.

Orkla has been a signatory of the UN Global Compact since 2005, thereby pledging to uphold the UN’s Ten Principles with respect to human rights, labour rights, the environment and anti-corruption efforts in our day-today operations. Through this work, we have experienced how dialogue and collaboration across industries and centres of expertise can make what is difficult easier and the impossible possible. In keeping with the spirit of the Global Compact, we will actively seek to pursue a dialogue. We are convinced that by making a concerted effort to resolve major issues, we can make a difference.

I hope that this report gives you a good picture of where we stand and our ambitions for our sustainability work. At the same time, I encourage you to contact us if you have views on how we can improve.

Peter A. Ruzicka
President and CEO