Alistair Mowat (Innovation Manager, Zespri)

1. Developing Sustainability as a Core Competency
Alistair Mowat

3. Temple of Jupiter, Baalbek –
The high water mark for the
Roman Empire
Energy to supply grain > Energy content of grain

5. The Energy Efficiency of Modern Food
Production
Beef
Pork
Chicken
Food Type
v
Apples
Eggs
Cheese
Milk
Corn
0 20 40 60 80 100 120
Energy Content of Food / Energy Used To Produce Food
(%)
Adapted From http://truecostblog.com/

7. The Maturity of an Issue in Society
Should Influence a Company’s Response
Response of a Corporate to an Issue
Strategic Greater Opportunity for
Corporate
Compliant
Greater Risk to
Corporate
Defensive
Latent Emerging Consolidated
Maturity of an Issue in Society
(adapted from Zadek, 2004)

9. ZESPRI® KIWIGREEN
The ZESPRI ® KIWIGREEN System was developed in the
1990‟s as an ecologically friendly integrated pest
management programme that uses integrated pest &
disease control methods where possible
The amount of pesticides
applied to over 12,100ha has been
reduced by ~100 tonnes per year

10. “ Green pedicure … these metrics bring to light the broad but
subtle implications inherent to various activities. Paying for
19 May, 2008 them is another matter.
"We've now set ourselves the ambitious target of becoming
the world's most sustainable retailer by 2051, so that we
lead the way in making a positive contribution to the
environment and society across everything we do and
everything we sell.”
“You asked us to find ways to make it easy
to identify the carbon footprint of your
shopping. So in 2008, we joined forces with
the Carbon Trust to test a new label on
some of our products.”
“… water would be on every agenda in sourcing food.”

11. Knowledge of Product Footprint
High
Compliance &
“Market-
competitive”
forces NGO’s raising
awareness &
“Guilt-free”
Consumption
• Producer • Consumer
Low
& Customer
Low High
Motivation to Understand Product Footprint

12. Intangible
Tangible The Evolution of Value Creation
Product Service

13. ZESPRI Environmental Footprint
Innovation Projects
Environmental Quantify Our Assess Our Adapt Our “Do it Better”
Indicator Footprint Risks & Business than Our
Opportunities Competitors
Greenhouse
Gas Emissions √ √ •
Non-renewable • •
Resources
•
Water
√ √ •
Waste
•
Biodiversity •
Adapted from Lash & Wellington, 2007

14. Understanding and Reducing our
Environmental Footprint
• Carbon footprint scoping study completed
Greenhouse Gas • Impact of growing practises on soil carbon.
(GHG) Emissions • Collaborating with partners across the
supply chain
Non-renewable • Production of renewable energy from biogas
Resources & recovery of nutrients.
• Conversion of waste kiwifruit into bio-
Waste
composite & bio-plastic
• Quantification of our water footprint and
Water
identification of water stewardship options
Biodiversity • Ongoing research to understand and utilise
biodiversity on kiwifruit orchards.

15. Understanding our GHG Impact
- ZESPRI GREEN Kiwifruit Shipped to the UK

17. The polystyrene
Spife improves the
convenience of
eating kiwifruit
but contributes up
to 3% of the
carbon footprint
for ZESPRI
branded kiwifruit
and can be
inconvenient for
disposal

18. Bio-composite Spife’s Manufactured from
Bio-plastics & Waste Kiwifruit
Consumer
Value
Public Cost
Good Efficiency

20. „Growing It‟ - On Orchard
Innovation: Catalyst for Climate Change Response
• Major soil carbon study underway
• Focus orchard network - best practice
dissemination
• Climate change adaptation
• New product development
• New growing techniques
• Yield gains with reduced inputs
• Organic learning transfer

21. An SFF Project: COST [Carbon in Orchard Soils Team]
Deep Sequestration Agents:
• Roots
• Worms
Young orchard Old orchard
(10 yrs) (25 yrs)
Old orchard
• Young orchard ~ 139 t-C/ha: Old ~ 145 t-C/ha

22. „Packing It‟ – Packhouse & Coolstore
Innovation: Catalyst for Climate Change Response
• Energy Efficiency
• Lean Manufacturing – „The Toyota Way‟
• Waste minimisation/ utilisation
• Bio-plastics initiative
• Bio-Fuel feedstock
• Packaging; recyclable/ re-
usable/compostible

23. „Delivering It‟ – Transport
Innovation: Catalyst for Climate Change Response
• Routing/ Hubbing
• Pack Optimisation
• Speed optimisation
• Optimal Temperature
management
• Bio-fuels

25. Branding can Mask a Companies Environmental Performance
from Consumers ... Till Now
New Scientist, 2010

26. Response to Sustainability/Climate Change
will Depend on a Company’s Orientation
Supply Driven Knowledge Demand Driven Knowledge
Intensive Solutions Intensive Solutions

27. 2008 ARGOS Survey Data
Very 7.0
important
6.0
5.0
Neither
important or
unimportant
4.0
3.0
2.0
Very
unimportant 1.0
N = 52

28. Evaluating Consumer Value Drivers and the Various
Components of The Value Chain Environmental Footprint
High
New Cultivars
Perceived Value to Consumer
Packaging
Transport
Plant
Supporting
Structures
Low
High
Contribution to Value Chain Environmental Footprint
Adapted from Fearne, 2009

29. Integrate Consumer Value Drivers with the Value Chain
Environmental Footprint to Better Target R& D Investment
and Partnerships with Government
Continue to find
High and exploit low
environmental
impact
Develop cautious strategies that
Perceived Value to Consumer
opportunities to
add value to our are strongly managed by ZESPRI
products to improve efficiency and reduce
environmental impacts without
adversely impacting on consumer
value
Strong partnerships
with government &
chain partners are
needed to improve
Not a efficiency and reduce
significant environmental
concern impacts
Low
High
Contribution to Value Chain Environmental Footprint

30. Strategic Response to Climate Change
Deceasing Our Vulnerability
(Securing Supply)
to Climate Risk
Increasing our Climate Change Competitiveness
(Maintaining or Stimulating Demand)
Adapted from Nidumolu et al., 2009

31. Thank you
For more information please contact;
alistair.mowat@zespri.com