Value from sustainability Jessica Sansom Innocent Drinks

introducing innocent We started small So we came back from the snowboarding holiday we were on with the idea and set about trying to make it happen. Spent next 6 months being fruit geeks – trying out recipes, asking people whether they prefer mangoes or kumquats and speaking to shop keepers. Things were progressing and all our friends and family said that they liked our juices, but we couldn’t help thinking that they would say that wouldn’t they, so to get the confidence to leave jobs and go about setting up innocent full time, we did a little test. Tell Yes and NO bin story Mums’ bottles in no bin

We now have a little family of smoothies our smoothie family We now have a little family of smoothies 200 employees 7 european countries

We’ve experienced pretty rapid growth our sales We’ve experienced pretty rapid growth 4 4

Europe’s favourite little smoothie company innocent 2010 vision Right now we have a clear vision of what we want to achieve Europe’s favourite little smoothie company 5

Create a business we can be proud of core philosophy But we have an over-riding principle by which we make all decisions Create a business we can be proud of a.k.a The Nursing Home Test

Create a business we can be proud of company values This drives our 5 values Create a business we can be proud of Be natural Be entrepreneurial Be responsible Be commercial Be generous Keep it human, put people first Make 100% natural, delicious, healthy stuff, 100% of the time Act and talk naturally, treating others as you would want to be treated. Chase opportunities and be responsive Be creative and challenge the status quo Prove it can be done Leave things a little better than we find them Move towards only zero or positive impacts Create growth and profit for us and our customers Be tough, and be fair Think clearly, act decisively and keep the main thing, the main thing With time where needed With praise wherever possible With wealth with those that deserve it

value from sustainability Clean Technology Realise major improvements through new clean technology. Stay competitive in resource-constrained future. = Innovation and repositioning Base of the pyramid Focus purpose on the major global environmental and social issues. Meet unmet needs of emerging markets and future generations. = Growth and trajectory Tomorrow Resource efficiency Lower costs and risks by reducing resource use. Eliminating waste either at source or use as a useful input = Cost and risk reduction Product Stewardship Assume responsibility for product’s entire life cycle. Engage with stakeholders. = Reputation and legitimacy Today Internal External Source: S. Hart 1997, Beyond Greening: Strategies for a sustainable world

sustainability strategy We think being sustainable is relatively straightforward Produce 100% healthy, 100% natural drinks Made from socially and environmentally conscious ingredients In market leading sustainable packaging Produced by a resource efficient business Sharing some of wealth created with people who deserve it 100% natural drinks ethical ingredients sustainable packaging resource -efficient business sharing the proceeds Sustainability strategy focuses on issues which represent our main impact and over which we have the best ability to improve performance Key issues for the supply chain are ethical ingredients, sustainable packaging, resource efficient business

sustainability strategy In the supply chain, it is about 3 things Produce 100% healthy, 100% natural drinks Made from socially and environmentally conscious ingredients In market leading sustainable packaging Produced by a resource efficient business Sharing some of wealth created with people who deserve it 100% natural drinks ethical ingredients sustainable packaging resource -efficient business sharing the proceeds Sustainability strategy focuses on issues which represent our main impact and over which we have the best ability to improve performance Key issues for the supply chain are ethical ingredients, sustainable packaging, resource efficient business

sustainability strategy Firstly, its about our fruit supply Produce 100% healthy, 100% natural drinks Made from socially and environmentally conscious ingredients In market leading sustainable packaging Produced by a resource efficient business Sharing some of wealth created with people who deserve it 100% natural drinks ethical ingredients sustainable packaging resource -efficient business sharing the proceeds This is where we have our broadest impact 160,000 mt fruit grown around the world Impact on environment - and a large workforce in developing countries

We want to source sustainable fruit ethical ingredients We want to source sustainable fruit Suppliers required to meet minimum standards for sustainable sourcing Spend prioritised on farms with the highest accreditations Increase the supply of certified fruit through funding and other resources We want to buy fruit from farms that look after both their workers and the environment. We have now developed our own set of minimum standards for farms to comply with, however our preference is to use certification schemes that are already in place. The amount of variety of fruit that is certified is increasing all the time, but we still need more market demand, and the Rainforest Alliance need more resources. This year we committed to 3 years of funding for the RA to assist in certifying more fruit – pineapples, passion fruits, banana, oranges, acai and acerola cherry.

We really like the Rainforest Alliance ethical ingredients We really like the Rainforest Alliance Covers both social and environmental issues Encourages farms to build their skills and capabilities Works with all types and sizes of farms Undertaken by local NGOs The standards cover the full breadth of social and environmental issues The standards encourage farms to adopt practices which build their skills and capability for more efficient production and a higher quality product The RA work with all types and sizes of farms allowing us the purchasing flexibility necessary to buy the variety and quality of fruit that we require The certification process is undertaken by local NGOs ensuring that local cultural issues are taken into consideration

Last year we kicked off a 3 year programme to Get Closer to the Fruit GCTTF Last year we kicked off a 3 year programme to Get Closer to the Fruit This year we commenced a program to get closer to our fruit. It is important for us to understand where our fruit is coming from, what the local issues are that these farms are trying to address, how these issues impact their sustainability performance, and how we might be help address these issues. We have been spending time with the Rainforest Alliance and other local NGOs to gain a much deeper understanding.

sustainability strategy After the fruit, its about the packaging Produce 100% healthy, 100% natural drinks Made from socially and environmentally conscious ingredients In market leading sustainable packaging Produced by a resource efficient business Sharing some of wealth created with people who deserve it 100% natural drinks ethical ingredients sustainable packaging resource -efficient business sharing the proceeds

Sustainable packaging We look for 4 main sustainability criteria for our packaging formats: To use recycled or renewable materials To use as little material as possible To use packaging formats with a low carbon footprint To use packaging formats for which there is a widely available sustainable waste management option

reduce virgin finite materials We have been making progress in reducing our use of virgin PET Right from the beginning we knew that using virgin plastics was not something we wanted to do. We started talking with our suppliers to increase the amount of recycled PET that we could use in our bottles. This was a challenge for a number of reasons: Whilst oil was cheap there was not much of an incentive for companies to invest in the necessary separation and cleaning infrastructure required, or the necessary tests to prove safety and quality We needed a high quality recycled content for use in food grade packaging which was not readily available We needed to ensure that we meet all the relevant food safety legislation so there was no contamination of the food product from the recycled materials We like a good challenge

reduce virgin finite materials Last month we achieved our ambition of a 100% rPET bottle 20% less plastic 55% less carbon 100% recycled raw material 100% recyclable In September this year we launched the world’s first 100% recycled plastic drink bottle. When we compare this to our original bottle in 1999 and our 4 main sustainability criteria, we have achieved: 100% post consumer recycled materials used for bottle, 25% recycled / 75% FSC certified materials for the label 20% reduction in material used 55% reduction in the carbon footprint 100% recyclable bottle, with over 65% of households in the UK with collections for plastic recycling Next job is to work on the cap, and the glue used for the label.. We have similar programs in place for our one litre carton (aiming for 100% FSC certified paper) and kids wedge (also aiming for FSC certification and 20% reduction in material usage).

sustainability strategy Finally, we want to be as efficient as possible Produce 100% healthy, 100% natural drinks Made from socially and environmentally conscious ingredients In market leading sustainable packaging Produced by a resource efficient business Sharing some of wealth created with people who deserve it 100% natural drinks ethical ingredients sustainable packaging resource -efficient business sharing the proceeds

We started with the things that just made common sense the basics We started with the things that just made common sense Our resource efficiency work started with the things that just seemed to make common sense. Not air freighting our fruit Buying renewable energy for our offices Using environmentally preferable fuels or hybrids for our cars and vans Buying fruit locally where variety and quality is available – 54% of our fruit comes from Europe

measuring our carbon footprint Two carbon audits in 2006 identified where the carbon was Last year we undertook 2 carbon audits – one with the Edinburgh Centre for Carbon Management and one with the Carbon Trust. Audit measured from farm to fridge to bin. Few things to point out – food miles is less than 20% of our total footprint in each of our different packaging formats. We needed to work on reducing the carbon of our PET bottle (which we’ve done), manufacturing emissions were significant in both formats. Growing and packing emissions were significant in both formats.

measuring our carbon footprint Agrochemicals are a major contributor Agrochemicals – both the innocent minimum standards and the Rainforest Alliance standards encourage a reduction in the usage of agrochemicals (like nitrogen based fertilisers) which have a heavy environmental and carbon impact, as well as representing significant costs for farmers. Natural alternatives are preferred, like utilising banana peels as a natural compost.

measuring our carbon footprint Packaging is the biggest issue for bottles – rPET reduced the total by 18% Last year we undertook 2 carbon audits – one with the Edinburgh Centre for Carbon Management and one with the Carbon Trust. Audit measured from farm to fridge to bin. Few things to point out – food miles is less than 20% of our total footprint in each of our different packaging formats. We needed to work on reducing the carbon of our PET bottle (which we’ve done), manufacturing emissions were significant in both formats. Growing and packing emissions were significant in both formats.

measuring our carbon footprint It was also clear we needed to help our suppliers realise savings In April 2007 we started working with one of our co-packers to reduce carbon Manufacturing – we wanted to help our suppliers realise cost and energy efficiencies by undertaking audits to look for opportunities and developing action plans.

One manufacturer has halved their use of land fill … suppliers going green One manufacturer has halved their use of land fill … 54% Task force Segregation bins Measurement Saving

… and moved to renewable energy suppliers going green … and moved to renewable energy 4% increase in energy cost Differentiation in a competitive market Costs picked up by innocent

how to resource sustainability Sustainability is not a separate function Sponsor Rich Technical Packaging Production Lead Jess

Viable natural environment achieving a balance Sustainability is not a perfect solution – it’s a balancing act Planet Viable natural environment Sustainable development When devising a strategy and action plan to improve sustainability performance, it is Important to remember that there is no one perfect solution. Sustainability is about achieving a balance between people, planet and profit. This is of particular importance for developing solutions which are feasible for the supply chain without impacting other key performance areas, and which will ensure that our suppliers are engaged in what we are trying to achieve. Outstanding economic performance at the cost of the community is not sustainable. Neither is protecting the environment beyond reasonable means and consequently stunting any economic activities People Nurturing community Profit Sufficient Economy 28

sustainability strategy We believe a sustainable supply chain delivers enormous value to our business Produce 100% healthy, 100% natural drinks Made from socially and environmentally conscious ingredients In market leading sustainable packaging Produced by a resource efficient business Sharing some of wealth created with people who deserve it 100% natural drinks ethical ingredients sustainable packaging resource -efficient business sharing the proceeds Sustainability strategy focuses on issues which represent our main impact and over which we have the best ability to improve performance Key issues for the supply chain are ethical ingredients, sustainable packaging, resource efficient business