Orkla launches new sustainability targets for 2030
Orkla has set new sustainability targets towards 2030 that aim to combine profitable growth with clear environmental and social ambitions.
The targets provide Orkla with a clear strategic direction for its work on climate, nature, people, and responsible business practices.
“Sustainability has been, and will continue to be, an integral part of our business strategy. As active owners, we will influence and support the companies in Orkla’s portfolio to make responsible decisions,” says Orkla President and CEO Nils K. Selte.
Strategic sustainability targets – Orkla’s direction towards 2030
The strategic targets identify areas where Orkla has significant influence and where stakeholders expect transformation.
Emission reductions
Orkla will reduce its own greenhouse gas emissions by 70% by 2030, compared to 2016. In addition, value chain emissions must be significantly reduced – both emissions caused by land use and emissions from industrial activity and energy use. Orkla’s climate targets are approved by the Science-Based Targets Initiative (SBTi).
Nature protection
By 2030, priority raw materials that significantly contribute to deforestation – such as palm oil, soy, cocoa, beef and timber – must be produced without having contributed to deforestation or conversion of natural ecosystems since 2020. On the way to this goal, Orkla will follow the requirements of the EU’s new deforestation regulation (EUDR).
Responsible sourcing
Orkla will ensure that priority high-risk raw materials are certified or covered by programmes for responsible production. These are raw materials where risks may include child labour, forced labour, poor working conditions, inadequate wages, or negative impacts on nature or animal welfare.
Circular economy
By 2030, all packaging in Europe will comply with the EU’s new design and recycling requirements. Outside Europe, 100% of packaging will be designed for recycling.
“When we set requirements for raw materials, packaging and emissions, it affects thousands of suppliers and millions of products. This is an important step in reducing the footprint across the entire value chain,” says Jeanett Bergan, SVP ESG and Sustainability at Orkla.
Foundational sustainability targets
The foundational targets do not require strategic transformation but represent responsible, safe and fair business conduct every day.
Environment
- Reduce water and energy consumption in own operations.
People and society
- Provide all employees with a living wage.
- Ensure safe workplaces with no serious accidents.
- Ensure gender balance among employees, in management and on company boards.
- Avoid serious product safety incidents and continue improving the health profile of Orkla's products.
Ethics and responsibility
- Build a culture of integrity and accountability through Orkla’s business ethics programme.
- Ensure responsible follow-up of suppliers and partners.
An integrated part of the strategy
Progress towards the targets will be embedded in Orkla’s strategic processes. As an owner, Orkla expects each portfolio company to contribute with specific actions on the targets that are material to their business, ensuring that sustainability becomes a fully integrated part of value creation.