Orkla is committed to preserving rainforests and other natural forests with high conservation value, and will work systematically and purposefully to ensure that our products do not contribute to deforestation. This commitment applies to all of our operations and sourcing.
Forests are important for the Earth’s climate, and provide a livelihood for millions of people. The forests are also home to around 80% of the planet’s animal and plant species. Conservation of natural forests, especially tropical rainforests, is therefore crucial to limiting global warming, preserving natural diversity and safeguarding the rights of indigenous peoples. The combination of population growth, the desire for economic development and unsustainable agricultural methods is putting heavy pressure on Earth’s forest resources. Every year, vast forest areas disappear, often with significant negative consequences for local communities and indigenous peoples. The conversion of forest to production of agricultural commodities and paper represents a substantial proportion of global deforestation.
Orkla’s activities potentially impact on forests through some of the raw materials that we purchase. This applies in particular to palm oil, soy, cocoa, cardboard and paper packaging. We seek to promote sustainable development, and have set a goal for ourselves to ensure that the most important raw materials and packaging that we buy are produced in a sustainable manner by 2020. As part of this work, we will make sure that the production of these raw materials does not contribute to deforestation. By deforestation we mean the conversion of natural forest into farmland or for other purposes. In assessing which forests should be conserved, due consideration must be taken of both biological diversity and carbon binding.
Orkla is committed to preserving rainforests and other natural forests with high conservation value, and will work systematically and purposefully to ensure that our products do not contribute to deforestation. With regard to our purchasing of agricultural raw materials cultivated in tropical regions and other at-risk areas, we aim, at the latest by 2020, to be able to document that the raw materials are produced sustainably without causing deforestation. When purchasing packaging and other woodbased materials, we will make sure that they do not come from tropical rainforests and are based on sustainable production.
Strict sustainable production standards
When purchasing food raw materials that are cultivated in tropical regions or other areas bordering on high conservation value natural forests, we will emphasise the importance of sustainable cultivation practices that do not entail deforestation. When purchasing wood-based materials, we will attach weight to sustainable, deforestation-free production, and we will refrain from using materials from tropical natural forests.
Respect for universal human rights is a key element of responsible business practices. Orkla’s suppliers should establish due diligence procedures to avoid becoming involved in breaches of human rights in accordance with the UN Guiding Principles for Business and Human Rights. When areas bordering natural forests are cultivated, it is essential to be particularly aware of the rights and interests of indigenous peoples and local communities.
When purchasing raw materials and other materials mentioned above, we will require our suppliers to meet the following standards:
We will select suppliers who share our ambitions, and who commit to complying with the Orkla Supplier Code of Conduct in general and the requirement of zero deforestation in particular. We will engage in an ongoing dialogue with our suppliers regarding challenges that may arise and the progress made towards our objectives, and will give priority to monitoring the suppliers to which the greatest risk is attached. If we discover non-conformances between a supplier’s practices and our standards, we will give the supplier a reasonable period of time to change its practices. If the supplier cannot document improvement at the end of the agreed period, Orkla will consider changing suppliers.
We will tailor action plans to the challenges and opportunities of each raw material chain. Examples of measures include reducing the use of the raw material in question, using environmentally certified raw materials, adopting traceability systems, following up our suppliers and actively engaging in industry collaboration.
We will take steps to facilitate an active, open dialogue with authorities, environmental organisations, investors, competitors and other stakeholders with a view to increasing our knowledge, collaborating on measures and promoting effective common solutions.
We will communicate openly on the challenges we encounter and the results we achieve, and will report annually on the progress we make through Orkla’s sustainability reporting and through the CDP’s Forest Program, an investor initiative.
This policy must be seen in conjunction with the following documents: