Kellogg’s released its annual corporate responsibility report
to coincide with Earth Day. The iconic breakfast foods giant boasting a
brand portfolio with which many of us have grown up is moving towards a
more sustainable business model. While the company has a long haul
ahead, improved farming methods and reduced water consumption are among key goals for the company this decade.
The change in Kellogg’s business practices are a reflection of consumers’ growing awareness about how their food is made and where it is sourced.
To that end, the company is balancing the needs of the market with the
concerns of its stakeholders. Overall Kellogg’s is improving its
performance on several fronts, ahead on some and behind on others.
Sustainable farming is a high priority on Kellogg’s sustainability agenda.
The company is the largest customer for Louisiana’s rice farmers and
now Kellogg’s is working to ensure a sustainable supply for the long
term. Partnering with Louisiana State University and Louisiana Rice
Mill, Kellogg’s works with farmers to boost their financial bottom line
and address problems including water conservation, methane emissions and
water quality as a result of excessive runoff. The result is a Rice Master Grower program that promotes best practices and helps to green Kellogg’s supply chain.
Across the pond, Kellogg’s will start to use only sustainably grown palm oil in Europe. In the meantime the breakfast giant is investing in Green Palm
sustainable palm oil certificates to encourage the expansion of more
responsible palm oil farms. The challenge Kellogg’s faces is to address
the growing concern, even outcry, against destructive agricultural
practices that has spooked many companies into ensuring their
ingredients are environmentally sound. With this year’s acquisition
of the Pringles brand from Procter and Gamble, Kellogg’s faces growing
urgency as more consumers shy away from products containing palm oil if
they cannot verify the source.
As is the case with food processing and beverage companies, water
has a huge impact on Kellogg’s business performance. With the
percentage of water that ends up in food products only a slim percentage
of the company’s overall water consumption, Kellogg’s is taking steps
towards more responsible water stewardship. One of its processing plants
in Omaha, Nebraska reduced its overall water consumption by 24 percent
last year. Another facility in Mexico is combining water efficiency with
clean energy as solar power heats hot water for the factory’s boilers.
And meanwhile Kellogg’s is committed to transparency with reporting its
data to the Water Disclosure Program.
So you can feel better about
eating those Frosted Flakes and Rice Krispies in the morning: in fact
you should, as Kellogg’s makes it very clear that a solid breakfast is the way to start the day. Speaking of a good start, the beacon of Battle Creek is quite frank about its overall performance. While the company is head of its greenhouse gas emission and water reduction goals, it has fallen behind on waste diversion
and energy consumption targets. Nevertheless the company behind many
children’s, and adults’, breakfast of choice is a solid case study of
the challenges and successes businesses find when they take corporate
responsibility more seriously.
For every reader who peruses through the report and provides feedback, the company will donate $5 to the Global Foodbanking Network.
No comments:
Post a Comment