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Sustainability toolkit for
organic businesses
Better Organic Business Links

Why sustainability matters and practical steps
to achieve more in your business
March 2012
Foreword

This guide has been developed by Better Organic Business Links
(BOBL), an Organic Centre Wales project, in partnership with
Weir Total Supply Chain Sustainability (Weir tscs). In 2011 Weir
tscs carried out a project on behalf of BOBL to support organic
businesses in Wales understand and improve the sustainability of
their operations and their supply chains. Thanks to the participation
of 27 Welsh organic businesses this sustainability project was able
to engage with a good cross section of the organic sector, ranging
from dairy to meat to fresh produce to processed products and to
retail. The key findings of the project form the basis of this report.
Contents

1

	 Why sustainability matters	
	 Understanding the terminology – footprints	

	
	
	
	

2
3

Why should you be concerned about sustainability?	
Why does sustainability matter	
Key points 	
How can you approach sustainability? 	

2
3
3
3
4
4

5

	

Your score	

5

	
	

Image: Anthony Pugh

	 How sustainable is your business?	
Sustainability Action Plan	

6

Why use the SAP?	
What does the SAP cover?	
What will the SAP give you?	
How do you use the SAP	

6
6
6
6

Developing your Sustainability Action Plan	
Where you are now 	

6

	
	
	

	

	
	
	

4
	
	

Image: Jeremy Moore

Where you can make progress	
Setting priorities and targets	
Making it happen	

	 Tools to measure and monitor sustainability	
	 How to measure and monitor your progress?	
Tools to help you and where to find them	

6
9
10
10

11
11

12

Environmental	12
	
Energy reduction	
12
	
Carbon Footprinting	
12	
	Social	
12	
	
Consumer attitudes	
12
	Economic	
12	
	
Energy Efficiency and renewable electricity	
12
	
Water efficiency	
13	
	
Resource efficiency and waste reduction	
13
	
Other Sources of information for sustainability initiatives	
13
	
Efficiency and environment	
13
	Social	
13	
	Economic	
13

5

	 Why communicating the benefits of your sustainability	
	 strategy is vital to its success	

	

14

	
	

Who needs to hear about your work	
Develop your skills and understanding	
How do you communicate?	

	

Sustainability footprint charts

	

Meat sector	

16

Fresh produce sector	

18

Dairy produce sector	

20

Process sub- sector	

22

Wholesale / retail sector	

24

	
	

14
15	
15
Why
sustainability
matters
Imagine a three-legged stool. You can think of sustainability in your business as
a three legged stool, each leg of the stool represents one of the sustainability pillars:
environmental, economic and social. If one leg fails, the stool falls over. If one leg works
loose the stool becomes wobbly, unstable and ultimately useless as a place to sit.
What does sustainability mean for your
business?
sus.tain |səˈstān| v.t. 1. Carry weight of, hold up, keep from
falling or sinking, esp. for prolong period. 2. =SUPPORT 7.
Keep up or represent (part, character) adequately 8. Keep
(sound effort, etc) going continuously.1
If sustainability in food processing is about keeping our
food business from sinking or falling down in the long
term, then we should consider the three legs of our stool:
•	
	
	
	
	

Economic sustainability is about maintaining viable
levels of profit in your business by smarter use of
resources, transport and more sustainable sourcing.
As energy prices rise, smart resource use will be
essential for businesses.

•	
	

	

Environmental sustainability is about minimising
adverse impacts on the environment, making best
use of resources and lowering risks, adopting safe new
technologies and safeguarding your natural capital.

•	
	
	
	

Social sustainability is about valuing and respecting
your staff and community, equipping the workforce
with the facts, helping to change attitudes and 	
adopting and promoting a sustainable ethos. It is also 	

	
	
	

about respecting other people in the supply chain by 	
making ethical business decisions and honouring
your obligations.

Working with the whole supply chain
You can’t have a sustainable business in isolation to be more sustainable involves working with the whole
supply chain. That means everyone involved in getting
food products from field to plate, from feed producers
to farmers and growers right through to consumers.
Businesses often have more influence than they realise.
Much deeper change, leading to more robust food
supply systems is achievable when you work with the
whole chain.

Opportunities for substantial cost savings
It is clear that improving sustainability across the supply
chain will help future proof all the businesses involved.
In addition, you can make substantial cost savings in
your business right now by adopting more sustainable
practices, processes and attitudes.
Source: Fowler H.W. and Fowler F.G. 1979. The Concise Oxford
Dictionary of Current English. Oxford: Oxford University Press

1

Diagram 1: The food supply chain
Current: Complex – High Cost – Unsustainable
MATERIALS

PERMITTED
INPUTS
WASTE
RETAILERS
WAREHOUSE

Local Producer	

ENERGY

PROCESSING 
PACKAGING

DISTRIBUTORS
WAREHOUSE

RETAIL STORE

2

A guide for organic businesses

Local Warehouse

Local Shop	

Local Community

LOCAL
WAREHOUSE

FARMERS
MARKET

CONSUMER

Future: Lower cost – less environmental impact – ethical

RECYCLING OR
LANDFILL
A child born in a wealthy country is likely to
consume, waste and pollute more in his lifetime
than 50 children born in developing nations.

George Carey,
former Archbishop of Canterbury
Image: Jeremy Moore

Understanding the terminology – footprints
The term footprint is used to express or measure the
impact on the environment of what we do. That includes
use of natural resources, emissions, waste and pollution,
and the impact on wildlife and communities. The most
common measurements of environmental footprint that
are used are ones that can be readily quantified – carbon,
water and waste.
The total emissions of green house gases in carbon
equivalents from a product across its life cycle (from the
production of raw materials through to manufacturing
and disposal of the finished product) are described as
the carbon footprint. Similarly, the waste footprint is
the environmental, economic and social impact of the
waste we leave behind, for example the landfill where nonrecycled materials end up. The water footprint refers to
the total volume of fresh water used directly and indirectly
to run and support the business. Footprints should include
processes and practices in the whole supply chain.

Why does sustainability matter
“... sustainability means running the global
environment - Earth Inc. - like a corporation:
with depreciation, amortization and
maintenance accounts. In other words,
keeping the asset whole, rather than
undermining your natural capital.”
Maurice Strong the first Executive Director of the United Nations
Environment Programme (UNEP).

Diagram 2:
Reasons to improve sustainability in your business

Purc

hasin

g

Waste

“A child born in a wealthy country is likely
to consume, waste and pollute more in his
lifetime than 50 children born in developing
nations. Our energy-burning lifestyles are
pushing our planet to the point of no return.”

Fuel

Ener

gy

George Carey, former Archbishop of Canterbury
Labo

ur

Why should you be concerned about
sustainability?
Re
d
ris uce
k

ce
du ts
Re os
c

Increase
sales

Your
business
Bo
mo ost
rale

It’s a hot topic for good reason. A business that fails
to address sustainability issues leaves itself vulnerable
to future changes such as increasing energy costs
and disruption of overseas supplies. On the flip side,
opportunities for business growth and more robust
food supply chains come from improving sustainability
performance.
Business survival depends on understanding
sustainability issues and what threats or opportunities
arise from them.
Business growth depends on responding to a
changing world.
Businesses can lead the way for consumers on
sustainability issues.

Meet
legislation

Im
co b pro
nfi uye ve
de r
nc
e

Improve
n
reputatio
– Organic
us
Pl

A guide for organic businesses

3
Boost morale:
engage staff to help
achieve sustainability
targets

Key points
Meeting legislation on emissions reductions will demand
change from businesses, being prepared in advance can
help you manage budgets.
Reducing costs needs no explanation. This makes
economic and environmental sense and can be achieved
through a variety of measures including improving your use
of resources, for example materials, energy and transport.
This gives some protection against price rises and in
areas like waste reduction empowers the business to take
control of processes where unsustainable practices incur
penalties, for example landfill tax.
Reducing risk is about looking at areas of current
or future vulnerability such as sourcing products from
overseas. Political, financial or environmental instability can
affect costs and supply.

Do you run an
active company
suggestion scheme
on sustainability
ideas?
Boost morale: engaging staff to help achieve
sustainability targets will boost morale within the business
and can affirm or lead to changes of behaviour at home
from staff and their families such as reducing energy use,
using the car less or recycling more. Active work in this
area can enhance your reputation and so increase sales.
Improve your reputation by first understanding
consumer concerns in this area and then shouting
about the work you are doing. Add information to your
website, terms of trading, invoices, brochures, product
specifications and staff manuals. In particular, highlight
where your activities go beyond the organic standards,
commonly known as organic plus attributes.

4

A guide for organic businesses

Read section 5 of this guide: Why communicating
the benefits of your sustainability strategy is vital to its
success.
Improve buyer confidence by being proactive in
this area. It allows you to budget for sustainability
improvements over time and demonstrates a commitment
to long term supply, which will encourage strong trading
relationships with customers and consumers.
Reduce risk of shortages of imported materials or poor
performance by overseas suppliers by moving towards
local sourcing and join or set up buying groups to optimise
vehicle utilisation and reduce costs.

How can you approach sustainability?
Sustainability requires a holistic approach to business
– extending from the principles of organic to the whole
supply chain and beyond:

•	 Attitudes and behaviours of staff, suppliers,
	 customers and consumers.
•	 Operational  supply chain issues such as sourcing,
	 transport and logistics.
•	 Product design, promotion and sales.

For any change to happen you have to measure where
you are at now, set targets for change and monitor results
of new attitudes, operations and product development. To
do that you need a Sustainability Action Plan (SAP).
A SAP is a programme of actions to drive improvements
in your business; a guide on how to develop a SAP is
included in section 3 of this guide.
Image: Jeremy Moore
How
sustainable is
your business
As an organic business you will be
aware of sustainability issues and may
already be doing some good work,
for example, reducing waste going to
landfill, but perhaps you haven’t applied
sustainability thinking to all parts of your
business and to your supply chain.
Take this quiz and find out if you still have
work to do.
How
The quiz will take you less than 10 minutes to complete.
Score 1 for yes, 0 for no, then find out what your
score means.

Your score:

0-4

A low score indicates a lack of management control.
Your business may also need a greater focus on costs to
stay in business.

5-7

Some basic areas are under control.
Look at the remaining areas, identify what is preventing
full implementation and prioritise areas for action.

8-10

Good progress and good level of control.
Look at your results – what else can be done to 		
improve? Set further improvement targets and
continue to track.

top tip

check

Do you source the majority of supplies and services locally?
Do you have an ethical or fair trade policy with suppliers?
Do you order in supplies in bulk containers or on pallets?
Do you avoid packaging, use returnables or use packaging from renewable resources?
Do you measure and monitor electricity and fuel use?
Have you set targets to reduce electricity use?
Have you set targets to reduce fuel use?
Do you run an active company suggestion scheme on Sustainability ideas?
Do you ensure that all vehicles leave with full loads?
Do you ensure that vehicle tyres are at the correct pressure on a weekly basis?

This quiz is only a quick check to help you understand
how much more you need to do as a business. Your
score will reveal which areas are on your radar and where
you could do more.

Many businesses are gaining the benefits of lower costs
and higher reputation by taking a structured approach to
sustainability. If you haven’t already done so, develop a
Sustainability Action Plan.
A guide for organic businesses

5
Sustainability
Action
Plan
This guide provides a template to help you prepare your own Sustainability
Action Plan (SAP).
It has been provided specifically for businesses in the organic sector in Wales
but it is relevant for all Welsh food businesses wanting to operate more
sustainably.
Why use the SAP?

What will the SAP give you?

The SAP gives you a programme of actions to improve
your business financially, environmentally and socially.
Writing down your goals and having a plan of how to
achieve them gives you a better chance of success. More
than that, completing the SAP is a commitment to involve
employees, suppliers, customers and other stakeholders
in a practical journey.

-	 A clear picture of your status in each key area:
	 where you are now

What does the SAP cover?
It can cover:
-	 Policies and strategies: what you intend to do and
	 how you will do it
-	 Processes and measurement: what areas will be
	 covered and how you will track progress
-	 Employee engagement: how to get staff involved
	 and motivated
-	 Social impacts: your relationship with your local
	 community, ethical issues

-	 A set of objectives and desired benefits:
	 where you want to be and why
-	 A time frame for each to be achieved: when you
	 expect to reach your goals
-	 A set of actions to be carried out: how you will
	 get there
-	 Clear responsibilities and ownership: who will
	 take action

How do you use the SAP
There are four parts to the SAP:
1.	 Where you are now
2.	 Where you can make progress
3.	 Setting priorities and targets
4.	 Making it happen

-	 Resource efficiency: materials, energy, water
-	 Operational efficiency: manufacturing, logistics
	 (for example distribution)
-	 Environmental impacts: emissions, waste
-	 Purchasing: fair practices, sustainable sources

Developing your Sustainability Action Plan
1.	 Where you are now
This part of the SAP asks you to take a good hard look at how you are performing across different areas: strategy and
processes, communication and reputation management, resource use and business operations.
Section four of this guide signposts you to tools to measure and monitor your business to help you fulfil your
sustainability goals.

6

A guide for organic businesses
How well does your business meet these standards?
Table 1: Where you are now
Sustainability element

Fully

Mostly

Partly

NOT

Strategy and processes
Formal sustainability policies have been created
Strategies are being carried out
The board is fully committed
Is sustainability thinking adopted across the whole business?
Sustainability data such as weight of waste to landfill, electricity and water
consumption figures, fuel consumption figures, customer attitudes to waste,
food miles etc are collected, reported and tracked
Staff pay depends on performance on sustainability issues
Communications and reputation management
Sustainability targets are publicised and progress reported on a regular basis
Is your business recognised for its work on sustainability e.g. through press
coverage, awards, customer feedback, buyer confidence
How engaged are you with your staff and your community?
All staff understand your sustainability policies
All staff are actively involved in working towards your sustainability goals
Actively supporting programmes that benefit the economic, environmental
and social well being of the community (budgets set aside and ring fenced)
Marketing department understands sustainability issues and applies
sustainability thinking to product development and promotion
Engaging with customers and trading partners to develop more sustainable
practices and products
Resource use and impacts
Energy
Energy (oil, coal, gas, electricity and fuel) use is recorded and tracked
Energy reduction targets set
Energy champion appointed to drive improvements
Renewable energy options evaluated, for example solar, PV, wind,
hydro, biomass
Renewable energy systems installed
Carbon footprint
Business carbon footprint measured
Business carbon footprint reduction targets set
Supply chain carbon footprint measured
Supply chain carbon footprint reduction targets set

A guide for organic businesses

7
Sustainability element
Water
Water use is measured
Targets set for water use reduction
More sustainable water systems evaluated, for example recycling, renewable
boreholes, rainwater capture
More sustainable water systems installed
Waste
All waste is measured and segregated
Targets set for reducing all waste streams
Zero waste to landfill target met
Materials
Products designed with sustainability in mind
Materials from renewable sources are used where possible
All packaging minimised and recyclable
Footprints
Waste, carbon and water footprints of offices are measured
Targets set to reduce office footprints
Waste, carbon and water footprints of warehouses are measured
Targets set to reduce warehouse footprints
Waste, carbon and water footprints of employee travel are measured
Targets set to reduce employee travel footprints
Efficient operations
Stock (materials and products) kept to a minimum through effective planning
Waste or spoilage kept to a minimum
Equipment measured and assessed for effectiveness, for example: would
a higher power machine give you greater throughput for less cost/energy
use per item?
Targets set for improving operational efficiency
Co-ordinate inbound and outbound transport to minimise mileage and fuel use
Managing supplies
Materials and suppliers are regularly assessed against sustainability criteria
Critical suppliers are audited to ensure risks are eliminated, for example failure of
supply or customer trust
Sharing of best practice with supplier groups to improve performance and
encourage innovation

8

A guide for organic businesses

Fully

Mostly

Partly

NOT
2.	 Where you can make progress
The next step is to identify the gap between your current status and the standard of excellence, and then decide how far
you want to close those gaps – what is a good target to aim for. You will need to take account of what the benefits will
be to your business and what resources (people, investment) may be needed to reach those targets.
A good way of deciding on the targets and to set priorities is to get key staff members and managers together and look
at each opportunity that the Sustainability audit has identified. Take everyone off site so you can really focus on the work
in hand. Together you can make an estimate of the impact and time/effort required to achieve the target.
Table 2: Where you can make progress

Area

Opportunity

Action

Sustainability
Impact

Financial
benefits

Timing

Resources

Sustainability
element

What is the
target?

What needs
to happen?

High/med/low

High/med/low

Months

People,
investment

e.g. Measurements
and reporting

Monthly
sustainability
report

Process for
collating data

High

Medium

3

Technical manager,
smart meter

e.g. Packaging

All packaging
minimised
and
recyclable

Review
current
packaging
and look at
switching
where
appropriate
to alternative
supplies

Medium

Medium

6

Marketing
manager

e.g. Waste

Zero waste
to landfill

Measure
and monitor
current
waste and
processing.
Introduce
waste policy
and train staff

High

Medium

9

Technical manager

Before finally confirming the priorities for action you need to review how these fit into your overall business strategy and
other programmes that may be underway or planned. These will determine the timings.
Create a simple “dashboard” to show your progress, it could for example look at energy, water and waste. Only measure
things that make sense, so if you don’t use or receive any packaging don’t measure packaging.
See page 11 for more information on “dashboards”.
Diagram 4: Sustainability Action Programme

Diagram 3: Sustainability Opportunity Map
Impact

Business
Benefit

Sustainability Opportunity Map

Sustainability Action Programme

High

Optimised
Packaging

Tyre
Pressures

Med

New
Lighting

5. Packaging Optimisation
4. Truck
Utilisation

Truck
Utilisation

3. Tyre
Pressures
2. New
Lighting

DashBoard

1. Dashboard

Low
6	12	 18

Months

6	12	 18

Months

A guide for organic businesses

9
3.	 Setting priorities and targets
Having confirmed the priorities, the final step is to prepare an action plan with SMART goals, and to assign ownership
of the actions (SMART goals are Specific, Measurable, Attainable, Realistic and Timely). A good way to do this is to
nominate champions for different areas, for example energy or waste. This is a useful template for the action plan.

Table 3: Setting priorities and targets

Ref
No

SMART objective

Action

Owner

Start Date

Finish
Date

e.g. A1

Enable board to report
to key stakeholders on
sustainability progress

Develop monthly
sustainability
report for board
with 10 main
indicators

Technical Manager

01-Feb-12

01-May-12

4.	 Making it happen
Finally, you need to get started and make it happen. Regularly reviewing progress against the SAP will help keep you
going. It is usually best to set up a senior team to review these on a quarterly basis, and adjust the plan if progress is
slow or other priorities and opportunities emerge. Although some of the steps may seem very long term you need to
remember that every cost saving measure you take is a positive benefit for your business. Sustainability is not just a
buzz word, it means building a robust, strong business now and for the future.

Sustainability is not just
a buzz word, it means
building a robust, strong
business now and for
the future.

10

A guide for organic businesses
Tools to measure
and monitor
sustainability
Sustainability in business means operating today in a way that doesn’t compromise
our future. It means balancing the environmental, social, and economic aspects
of your business.
How to measure and monitor your progress
Social

Bearable

Equitable

Sustainable
Environment

Viable

Economic

Over recent years there has been coordinated effort to define what is meant
by sustainability and to translate it into something meaningful that can be
measured and tracked. Organisations like the World Resources Institute
(WRI) and Business in the Community (BITC) have developed systems
that include reporting on ethical issues such as corporate and social
responsibility.
For sustainability to fully progress the three sustainability indicators
(environmental, social and economic) need to be balanced.
By choosing the right indicators and focusing on the important ones, many
businesses are able to track these with a “Sustainability Dashboard”, a type
of report, used to drive improvement. It is important that meaningful targets
are set and progress measured against these so that all stakeholders,
including your own employees, can understand the on going progress your
business.
Listed here, are some key ones that businesses should be tracking - most
should be measured at least monthly except where indicated.

Category

Indicator

Unit of measure

Source of data

Environmental

Energy

Usually measured in kWh

Utility bills

Fuel

Measured in litres or kWh

Fuel bills

Carbon Footprint

Tonnes CO2e. Operational scope
(1 and 2) mainly covers own energy
and fuel use

Utility  fuel usage
converted to Tonnes CO2e

Water

Measured in cubic metres

Utility bills

Waste

Net waste, measured in kg or tonnes

Waste contractor

Waste to landfill

Amount (kg) and % of total wastage
that is not recycled

Waste contractor

Employee satisfaction

Measured by annual surveys

Own staff

Community engagement

% of annual marketing budget
allocated and £ per employee

Accounts

Ethical trading

% of suppliers and purchases covered Annual review of suppliers
by ethical trading policies

Profitability

Net margin over sales

Accounts

Materials efficiency

% Yield from materials (rest is waste)

Production measurement

Transport efficiency

Vehicle Utilisation

Transport contractor

Social

Economic

A guide for organic businesses

11
Tools to help you and
where to find them
To share best practice and for more free online resources, join the Organic Supply Chain Forum
http://www.weir-tscs.com/organicforum/index.php
Energy reduction
•	 Mayday Network Tel: 0207 566 8650 www.maydaynetwork.com/journey
•	 DairyCo (for dairy farms) Tel: 0247 669 2051
	 www.dairyco.net/farming-info-centre/tools-information/energy-cost-calculators/introduction.aspx
Carbon Footprinting
•	 Carbon footprinting for farm businesses, by Tony Little and Laurence Smith, is an Organic Centre Wales 	 	
	 publication that gives in depth reviews of nine carbon footprint calculators
	 www.organiccentrewales.org.uk/uploads/carbcalcfull_report_a4.pdf
•	 Weir-TSCS Tel: 0845 450 4021 www.weir-tscs.com
•	 Best Foot Forward Tel: 0186 525 0818 www.footprintreporter.com
•	 Carbon Footprint Ltd Tel: 0125 634 5645 www.carbonfootprint.com
•	 EcoStudio Tel: 0845 269 6105 www.ecostudio.org.uk
Resource efficiency
•	 Environment Agency Wales Tel: 0370 850 6506 - resource efficiency and environmental performance
	 www.environment-agency.gov.uk/cy/busnes/pynciau/perfformiad/default.aspx
Social
•	 Ethics a toolkit for Welsh organic businesses produced by the Food Ethics Council for Organic Centre Wales 	
	 www.organiccentrewales.org.uk/uploads/ethics_english__web.pdf
•	 Business in the Community (BITC) Tel: 0207 566 8650 - Responsible Business Check-up
	 http://www.bitc.org.uk/responsible_business_check_up/index.html
•	 Ethical Trade Initiative (ETI) Tel: 0207 841 4350 - The ETI Workbook 	 A comprehensive, step-by-step guide for companies on putting ethical trade into practice
	 www.ethicaltrade.org/resources/key-eti-resources/eti-workbook
•	 Soil Association ethical trade certification Tel: 0117 914 2406 http://www.soilassociation.org/ethicaltrade
Consumer attitudes
•	 Consumer attitudes towards organic food. Key findings,  
	 produced by Beaufort Research for Organic Centre Wales
	 www.organiccentrewales.org.uk/uploads/11265_beaufortresearchleaflet_final_lr.pdf
•	 IGD Shopper tracker reports www.IGD.com
•	 Survey Monkey, a free online tool to create your own customer or staff surveys www.surveymonkey.com
Economic - general accounting software for small businesses:
•	 SAGE www.sage.co.uk, QUICKBOOKS www.intuit.co.uk/quickbooks, MYBIZ www.mybiz.co.uk
•	 Farm management software FARMPLAN www.farmplan.co.uk
•	 Solar Accounts www.solaraccounts.co.uk
Energy Efficiency and renewable electricity
•	 Energy Saving Trust Wales Tel: 0800 512 012 www.energysavingtrust.org.uk/wales
•	 Carbon Trust Wales Tel: 0800 085 2005 www.carbontrust.co.uk/wales/wales/pages/default.aspx
•	 Carmarthenshire Energy Agency Tel: 01944 230003 www.ynnisirgar.org.uk

12

A guide for organic businesses
•	
•	
•	
•	
•	

South East Wales Energy Agency Tel: 0800 512012 www.sewenergy.org.uk
Low Carbon Buildings Programme Tel: 0800 915 0990 www.lowcarbonbuildings.org.uk
Energy Efficiency Advice Centre Tel: 0800 512012 www.actonenergy.org.uk
Centre for Alternative Technology Tel. 01654 705950 www.cat.org.uk
Soil Association Low farming carbon project Tel: 0756 436 0914 www.soilassociation.org/lowcarbon

Water efficiency
•	 Wrap, the Rippleeffect is a free water efficiency initiative that can benefit businesses of all sizes
	 Tel: 0808 100 2040 http://www.wrap.org.uk/business/sme/rippleffect/
•	 Waterwise Tel: 0203 463 2400 www.waterwise.org.uk
Resource efficiency and waste reduction
•	 WRAP Cymru Tel: 0292 044 8090 http://www.wrapcymru.org.uk/
•	 IGD - Free guide and toolkits on waste prevention Tel. 01923 857141
	 http://www.igd.com/index.asp?id=1fid=5sid=43tid=158foid=127

Other sources of information for sustainability initiatives
•	
	
	
	
•	
	
	
•	
	
•	
	
	
•	
	
	
	
	

Organic Centre Wales - Resource centre for organic businesses
Tel: 01970 622248 www.organiccentrewales.org.uk
Publication - Why sustainable agri-tourism is a market opportunity for the organic sector,
a BOBL publication, www.organiccentrewales.org.uk/uploads/agritourisme_july11.pdf
Farming Connect provide one-to-one support, knowledge, expertise, training and advisory services,
tailored to your needs. Many are fully funded or subsidised by 80%. They can all help you and your family 		
run your business more efficiently and safeguard the future of your farm business Tel: 0845 600 0813
Soil Association - A membership charity campaigning for planet-friendly organic food and farming
Tel: 0117 314 5000 www.soilassociation.org.uk
Centre for Alternative Land Use (CALU) – Tel: 01248 680450 www.calu.bangor.ac.uk
Publication - Managing energy and carbon. The farmer’s guide to energy audits,
www.calu.bangor.ac.uk/Technical%20leaflets/Energyauditmanual.pdf
Hybu Cig Cymru - Meat Promotion Wales (HCC) is the industry-led organisation responsible for the 		
development, promotion and marketing of Welsh red meat. Tel: 01970 625050 www.hccmpw.org.uk
Publication – A sustainable future – the welsh red meat roadmap
http://www.hccmpw.org.uk/medialibrary/publications/HCC%20Sustainable%20Red%20Meat%2
Roadmap%20English%20LR.pdf

Efficiency and environment
•	 Business Wales – Environment and efficiency Tel: 03000 603000
	 http://business.wales.gov.uk/bdotg/action/layer?site=230topicId=1079068363
Social
•	 United Nations Global Compact - Fair business practices www.unglobalcompact.org/
•	 Business in the Community (BITC) - Workforce and community engagement Tel: 0207 566 8650
	 www.bitc.org.uk
•	 Ethical Trading Initiative Tel: 0207 841 4350 www.ethicaltrade.org/
•	 The Food Ethics Council Tel: 0845 345 8574 www.foodethicscouncil.org
Economic
•	 Business Wales - Business advice for new and established businesses from the Welsh Government.
	 Tel: 03000 603000 http://business.wales.gov.uk

Finance and grants
•	
	
	
•	
	
•	
	

For the latest grants and government support available call 0300 060 3000 or visit
http://business.wales.gov.uk/bdotg/action/layer?r.l1=1073858790r.l2=1084705429r.s=smsite=
230topicId=1073866776
Farming Connect provide one-to-one support, knowledge, expertise, training and advisory services,
tailored to your needs. Many are fully funded or subsidised by 80%. Tel: 0845 600 0813
For information about support for the organic sector contact Organic Centre Wales
Tel: 01970 622248 www.organiccentrewales.org.uk

Organic Centre Wales and its partners cannot accept responsibility for the consequences of any actions taken
on the basis of the information in this document or other publications.

A guide for organic businesses

13
Why communicating
the benefits of your
sustainability strategy
is vital to its success
Every business owner understands that lack of profit over an extended period of time
spells disaster so working hard to achieve profit is a given. However, the benefits of good
sustainability performance are less obvious. If people don’t see the benefits it will be hard
to engage them.
In order to get people on board you need to actively communicate your vision, your goals,
your progress and the tangible benefits for all concerned. These are:
Business – improved sales, financial performance
and reputation
Environment – reduce dependence on non-renewable
resources and maintain natural capital
Suppliers – reduce costs, risk and carbon footprints

For instance:
•	
		
		
		

Actively promote the benefits of improved
sustainability performance e.g. cost savings,
increased reputation, resilience to change in the
future such as energy and fuel price rises

Customers – strengthen relationships by being a forward
thinking supplier

•	 Lead by example, share the goals and activity of
		
your own Sustainability Action Plan (SAP
		 (where appropriate) and regularly
		 communicate progress made

Consumers – working on their behalf to make their
choices more sustainable

•	 Share tools such as diagnostic tools and SAP
		 templates with suppliers

Who needs to hear about your work
on sustainability?

•	 Encourage measuring and monitoring of
		 sustainability performance by suppliers and
		 communicate this to your customers

Staff – boost morale and provide strong leadership

Everyone: suppliers, staff, customers and consumers.
It is not enough to simply ‘do’ work to improve your
sustainability performance because that performance
overall depends on the work others do too.
Sustainability has to be more than greenwash, it has to
permeate at every level and become a part of ‘whole
company thinking’.
	

Sustainability thinking applies to:
•	 Actions and behaviours
•	 Operational and supply chain
•	 Product design, promotion and sales

Communicating with suppliers
As a buyer you can influence the sustainability
performance of your suppliers. To do this you need to
engage your suppliers who may see only the costs rather
than the benefits. Therefore it is important to illustrate the
short and long term benefits of this work for your suppliers
and the whole supply chain.

14

A guide for organic businesses

Communicating with staff
Everyone in the supply chain, from the tractor driver to the
line worker, the marketing officer to the till operator, needs
to adopt this type of thinking. To achieve this requires
changing attitudes. This takes time and focused activity
such as:
•	 Involving representatives from every area of the
		 business when developing the SAP
•	 Running workshops to understand the benefits
		 of improved sustainability performance in
		
your business
•	 Appointing a Sustainability Champion within 	
		
your business
•	 Appointing an energy Champion
•	 Random monthly interviews with staff to test
familiarity with and understanding of the
Sustainability Action Plan (SAP) actions
•	
	
	
	

Communicating with customers
Wherever you are in the supply chain, make it easier for
end consumers to understand the benefits of your work in
this area. For example, publish specific targets and
progress reports on:
•	 Waste to landfill.
•	 Average miles travelled by product to customer
•	 Water consumption per unit of output
•	 Carbon footprint

Communicating with consumers
The work in your Sustainability Action Plan (SAP) will go
beyond the requirements of the organic standards. In
these cases, you need to emphasise these ‘organic plus’
attributes. In Farmer consumer partnerships – How to
successfully communicate the values of organic food2,
case studies from across Europe demonstrate how
certain organic plus attributes appeal to consumers.
From a marketing point of view, outstanding work on
sustainability performance, e.g. local sourcing, can be
used to make your products stand out.
•	
	
	
	

		
		
		

Make use of free social media sites to keep an
online journal of your sustainability progress.	
This can be a written journal or make it more 	
interesting by creating a photo diary on sites 	
like Blipfoto, or create a video diary using 	
You Tube. For example, post a picture of new 	
hessian bags arriving and mention how they 	
are made from sustainable materials and help 	
reduce our dependence on plastic bags.

•	
		
		
		

Post your progress on your blog or business
Facebook page. This is particularly useful for
small retailers who may have limited time and
budgets for promotion.

Engage with product design and marketing
teams so that sustainability analysis becomes
part of any development of new products,
promotion and sales material

Consider creating appealing point of sale
material such as shelf edge cards or pop up
banners which use graphics to illustrate
performance and progress

Work in this area can provide good material for press
releases, newsletter articles and blog posts on your own
or other business’ blogs.

How can you improve your
communication overall?
Understand consumer attitudes
Join forums
Keep a sustainability journal online
Become a ‘go to’ business sustainability
commentator for the press

Develop your skills and understanding

•	
		
		
		
		
		

How do you communicate?
Use face-to-face opportunities during staff meetings,
training sessions, with customers during buying
negotiations and with consumers at food events and
every day at the checkout, to put out positive messages
about the work you are doing in this area.
In print, for instance in your:
•	 Packaging
•	 Point of sale material
•	 Staff induction and training manuals
•	 Invoicing and terms of trade templates
•	 Posters in the workplace
Online, for instance update your:
•	 Website
•	 Email signatures
•	 E-newsletters (for staff, suppliers, customers
		
and consumers if appropriate)
•	 Social media such as Facebook, Twitter,
		 You Tube, Flickr, LinkedIn and Google Plus
•	 Specialist Industry forums such as The Organic
		 Supply Chain Forum and relevant groups on
		
platforms like LinkedIn e.g. Sustainability
		
Working Group

How often do you need to communicate
your progress?
If you regularly communicate your progress your business
will become strongly identified with positive action in this
important area.

•	 Understand your customers’ concerns in this
area. Find details of consumer surveys and tools
to run your own surveys in section 4 of this guide:
Tools to monitor and measure sustainability
performance.
•	 Join industry forums such as Business in the
	 Community, Profit Through Ethics. Contribute
	 to discussions, and learn from others.
•	 Let the relevant press know that you have
	 a Sustainability Champion able to provide
	 industry comment on matters like new
	 legislation on for example, waste, energy
	 and issues to do with business sustainability
	performance.

2
Zander, K. et al 2010. Farmer consumer partnerships - How to successfully communicate the values of organic food: a handbook. Kassel:
Department of Agricultural and Food Marketing, University of Kassel. Available on www.orgprints.org, or contact Organic Centre Wales for a copy.

A guide for organic businesses

15
Meat sector
Meat sector
Sustainability footprint charts –

MEAT

Key Issues

Excessive
packaging

% (up to 50%)

Opportunities

Lightweight
recyclable

% carbon

Materials

% cost
risk
% carbon

Sourcing

Overseas
suppliers

Local
suppliers

% cost
risk
% carbon

Inbound
Transport

Load
utilisation

Combine with
other loads

% cost
risk

On Farm

Resource usage
not measured
and targeted

% carbon

Integrated
planned and
measured system

% cost
risk

Process 
Packaging

No energy
management
system

% carbon

Reduce energy
and carbon

% cost
risk

Primary
Transport

Load utilisation
and food miles

% carbon

Optimise
routing and
combine loads

% cost
risk

Secondary
Transport

Long distances
and load utilisation
not optimised

% carbon

Optimise
routing and
combine loads

% cost
risk

Wholesale
 Retail

Prices paid for
organic too low.
Seasonal supply
variations

Energy
for cooking

% carbon

Direct sales to
key customers.
Exploit export
markets

All products
microwavable

% cost
risk
% carbon

Consumer

% cost
risk
% carbon

End
of Life

Waste
not recycled

Recyclable
packaging

% cost
risk

KEY

16

A guide for organic businesses

% of CARBON in chain

% of COST in chain

Element of RISK in chain
LOW

MEDIUM

HIGH
The organic meat sector supply chain in Wales comprises a
wide range of feed suppliers, farmers, marketing and distribution
companies, abattoirs, transporters and trade and retail customers.
The sustainability footprint chart for the meat sector (left) shows
where the carbon, sustainability risks and costs are in the typical
organic meat supply chain.
Understanding the Sustainability Footprint chart.
The data for the chart is based on sustainability work
by Weir TSCS with businesses in this sector and on
research findings in the meat and dairy sectors. The
results are representative only and meant to guide
businesses on where to focus their efforts

•	 Reduction in energy and water use in processing
		 and packing. Opportunities for renewable energy 	
		 production and better control/re-use of water to
		
be explored
•	 Collaborate on marketing and distribution to get
		 better prices and margins, essential for farmers to 	
		 stay in business and develop their farms

Carbon – The graph shows the typical percentage
of the total carbon emissions of the supply chain for
each element of the chain

•	
		
		
		

Costs - The graph shows how costs are typically
distributed across the supply chain, expressed as a
percentage

•	 Collaborative approach to reducing waste,
		 particularly unused animal by-products, looking
		 at technology such as Anaerobic Digestion

Risk – The chart shows the typical level of risk of poor
sustainability performance in each element of the chain
The footprint of this sector is significant, particularly due to
the carbon emissions associated with animal production.
However, there are also opportunities to reduce the
footprint across the rest of the supply chain, such as
improving transport efficiency, reducing energy and water
consumption in processing and packing and reducing
process and packaging waste.
Organic beef and sheep farmers can help to improve their
own sustainability by focusing on these key areas:
•	
	
	
	

Animal feed: Move towards more self-sufficiency for
animal feeds to minimise effects of rising feed prices,
either by producing feeds on farm, commissioning
local arable production or via buying groups1.

•	
	
	
	

Input costs control: Measure input costs – feed, 		
labour, manure and fuel – and manage using simple 		
farm or business management software. Take 		
advantage of buying groups to reduce costs further

•	
	
	
	
	

Impacts on the environment: Measure and manage 		
sustainability aspects – energy, carbon footprint (use 		
one of the free services available), waste (particularly 		
packaging used on feed), and soil quality. Set annual 		
targets for reduction and track progress.

•	 Cooperatives and marketing or distribution 		
	groups: Work with such groups to get higher sales 		
	 value and volume of animals and to make better use 		
	 of shared transportation to the abattoir
For the sector there are wider structural issues that
need review. This will require effective collaborative
working involving all the members of the chain:

Develop sales of high quality meat to the 			
restaurant and food service sector to increase 		
volume and margins. A good example is that
achieved by Rhug Estates

•	 Reduction in use of packaging, for feedstuffs but
		 more importantly for final product. This is clearly
		 in the domain of the retailers
Structural issues
•	
	
	
	

Re-establishment of more local abattoirs.
The opportunity for more local plants to reduce 		
live animal transport,improve freshness and 			
provide local employment, needs to be evaluated.

Summary
The organic red meat sector is particularly important as
livestock farmers make up 85 percent of organic farmers
across Wales. The sector has unique challenges
particularly in terms of abattoirs but a co-ordinated
approach to sustainability can continue to build robust
supply chains that improve the business performance
of all parties in the chain and help meet future challenges.
The new Hybu Cig Cymru2 document, A Sustainable
Future - The Welsh Red Meat Roadmap3, offers
stakeholders across the supply chain information on
greenhouse gases and climate change and helps support
the red meat industry to protect the Welsh environment
and to develop sustainable farming methods.
It presents detailed, practical ways to further improve
performance, achieve the new and agreed goals, while
adhering to the business model essentials of improving
efficiency and profitability.
See also HCC’s useful summary document ‘10 steps
to a lesser footprint’.

•	 Co-ordinated transport of animals to abattoir. 		
	 Graig Producers’ operation is a good example
	 of best practice in this area
Sources include: SA Marketplace (www.soilassociation.org/organicmarketplace), Graig Producers (www.graigproducers.co.uk),
OFG (www.organicfarmers.org.uk/classifieds).

1

2

See HCC website http://tinyurl.com/3sq6chh

3

See http://tinyurl.com/7vwhsn2

A guide for organic businesses

17
Sustainability footprint charts –

Fresh produce sector
Fresh produce sector
FRESH PRODUCE
Key Issues

% (up to 50%)

Opportunities

% carbon

Materials

Non-returnable
packaging

Returnable boxes
or crates

% cost
risk

Sourcing

Rising input
costs

% carbon

Join buying
groups to take
advantage of
lower costs

% cost
risk
% carbon

Inbound
Transport

Load
utilisation

Improved
planning

% cost
risk

On Farm

Resource usage
not measured
and targeted

% carbon

Integrated
planned and
measured system

% cost
risk

Process 
Packaging

Resource usage
not fully measured
and targeted

% carbon

Measure and
target energy,
carbon and waste

% cost
risk

Primary
Transport

Secondary
Transport

Transport to
wholesaler or
distribution centre
not optimised

Long distances
and load utilisation
not optimised

% carbon

Optimise
routing and
combine loads

Optimise
routing and
combine loads

% cost
risk
% carbon
% cost
risk

Wholesale
 Retail

Consumer

End
of Life

KEY

18

A guide for organic businesses

Prices paid for
organic too low.
Seasonal supply
variations

Value not fully
recognised to
justify price
premium

More information
on pack and
promotional
material

Short shelf life
and non-recyclable
packaging waste

% carbon

Direct sales to
key customers.
Exploit export
markets

Provide more
incentives to
consumers
to recycle

% of CARBON in chain

% of COST in chain

% cost
risk
% carbon
% cost
risk
% carbon
% cost
risk

Element of RISK in chain
LOW

MEDIUM

HIGH
As organic horticultural production in Wales is relatively limited, this
sector relies quite heavily on sourcing produce from further afield,
across the UK and overseas.
The sustainability footprint chart (left) shows where the carbon,
sustainability risks, and costs are in the typical organic fresh
produce supply chain.
Understanding the Sustainability Footprint chart.
The data for the chart is based on sustainability work
by Weir TSCS with businesses in this sector and on
research findings in the meat and dairy sectors. The
results are representative only and meant to guide
businesses on where to focus their efforts

•	 Co-operatives and marketing or distribution
	groups: collaborate where possible to achieve
	 economies of scale, this can be with packing, transport
	 and marketing. Work with groups to get higher sales
	 value and volume of crops and make better use of
	 shared transport

Carbon – The graph shows the typical percentage of
the total carbon emissions of the supply chain for each
element of the chain

For the sector there are wider issues that need to be
reviewed:

Costs - The graph shows how costs are typically
distributed across the supply chain, expressed as
a percentage.
Risk – The chart shows the typical level of risk of poor
sustainability performance in each element of the chain

•	
	
	
	
	
	

Communication – develop messages to convey
what the Organic Plus1 benefits work in this area
brings to the consumer, particularly with regard
to the appeal and benefits of e.g. more seasonal
consumption. Publicise success in improving your
sustainability performance

•	 Training drivers – to minimise transport costs
The footprint of this sector can be reduced in four
key areas:

•	 Waste – set targets to reduce spoilage and for zero
	 waste to landfill

•	 On farm fruit and vegetable production

•	
	
	
	

•	 Transport optimisation
•	 Sustainability communications
Organic fruit and vegetable growers can help reduce their
sustainability footprint by:
•	
	
	
	
	

Understanding the importance and benefits
of improved sustainability performance:
Processors and businesses further up the chain can 	
assist growers to develop their own Sustainability
Action Plan

•	 Input costs: Measure and manage input costs
	 – labour, manure and fuel

Procurement – work towards more sustainable
sourcing throughout the supply chain by setting
standards for suppliers and identifying more
sustainable sources

Summary
The fresh produce sector in Wales is performing well but
there is always room for improvement particularly in the
area of raising your reputation with consumers, lowering
the risk of sourcing inputs on farm and in the processing
operations, and cost reductions in terms of labour,
wastage, electricity and fuel.

•	 Sustainability aspects: Measure and manage
sustainability aspects – water, energy, carbon
footprint, waste, soil quality
•	 Packing: Carry out packing of produce close to field
	 to reduce transport and to preserve freshness
	 and appearance
•	 Buying groups: reduce the cost of inputs by joining or
	 forming buying groups with non competing companies

Sources include: SA Marketplace (www.soilassociation.org/organicmarketplace), Graig Producers (www.graigproducers.co.uk), OFG
(www.organicfarmers.org.uk/classifieds).

1

A guide for organic businesses

19
Dairyproduce sector
Dairy produce sector
Sustainability footprint charts –

DAIRY
Key Issues

Materials

Sourcing

Excessive
packaging and
some not
recyclable

Overseas
suppliers of feed
ingredients

% (up to 50%)

Opportunities

% carbon

Lightweight
recyclable

% cost
risk
% carbon

Local
suppliers

% cost
risk

Inbound
Transport

Long distances
and load utilisation
not optimised

% carbon

Combine with
other loads

% cost
risk

On Farm

Resource usage
not measured
and targeted

% carbon

Integrated
planned and
measured system

% cost
risk

Process 
Packaging

Resource usage
not fully measured
and targeted

% carbon

Measure and
target energy,
carbon and waste

% cost
risk

Primary
Transport

Milk collection
transport not
optimised

% carbon

Optimise
routing and
combine loads

% cost
risk

Secondary
Transport

Long distances
and load utilisation
not optimised

% carbon

Optimise
routing and
combine loads

% cost
risk

Wholesale
 Retail

Consumer

End
of Life

KEY
20

A guide for organic businesses

Prices paid for
organic too low.
Seasonal supply
variations

Limited
recognition
of value

% carbon

Direct sales to
key customers.
Exploit export
markets

More information
on pack and
promotional
material

Short shelf life
and non recyclable
packaging waste

% cost
risk
% carbon
% cost
risk
% carbon

Provide more
incentives to
consumer
to recycle

% of CARBON in chain

% of COST in chain

% cost
risk

Element of RISK in chain
LOW

MEDIUM

HIGH
The organic dairy sector supply chain in Wales comprises a wide
range of feed suppliers, farmers, marketing and distribution
companies, processing and bottling plants, transporters and trade
and retail customers.
The sustainability footprint chart (left) shows where the carbon,
sustainability risks, and costs are in the typical organic dairy
supply chain.
Understanding the Sustainability Footprint chart.
The data for the chart is based on sustainability work
by Weir TSCS with businesses in this sector and on
research findings in the meat and dairy sectors. The
results are representative only and meant to guide
businesses on where to focus their efforts
Carbon – The graph shows the typical percentage of
the total carbon emissions of the supply chain for each
element of the chain
Costs - The graph shows how costs are typically
distributed across the supply chain, expressed as a
percentage.
Risk – The chart shows the typical level of risk of poor
sustainability performance in each element of the chain
The footprint of this sector can be reduced in four
key areas:
•	 On farm milk production
•	 Sustainability management across the whole chain
•	 Logistics optimisation – using best practice to get the
	 most out of your supply chain
•	 Sustainability communications
Organic dairy farmers can help reduce their sustainability
footprint by:
•	 Understanding the importance and benefits of
improved sustainability performance: processors
and businesses further up the chain can assist dairy
farmers to develop their own Sustainability Action
Plan.
•	 Animal feed: Move towards more self-sufficiency for
animal feeds to minimise effects of rising feed prices,
either by producing feeds on farm, commissioning
local arable production or via buying groups. Develop
a better understanding of risks and costs
•	
	
	
	

Greenhouse gas emissions (GHG): use e.g.
DairyCo’s carbon footprint service to gain an accurate
picture of GHG emissions on individual dairy farms
and for operations in the wider chain

•	 Input costs: Measure and manage input costs –
	 feed labour, manure and fuel
•	 Sustainability aspects: Measure and manage
	 sustainability aspects – water, energy, carbon 	
	 footprint, waste, soil quality
•	 Learn from others: Share best practice among
members of the same co-operative
For the sector there are wider issues that need to be
reviewed:
•	 Communication – develop messages to convey the
Organic Plus1 benefits for the consumer
•	 Packaging – continue developments to reduce
	 carbon footprint of packaging
•	 Procurement – work towards more sustainable
sourcing throughout the supply chain
•	 Training in sustainability procurement
	 – particularly for procurement officers and dairy
	 farming members
•	
	
	
	

A strategic consideration could be to diversify and
develop premium products such as filtered milk for 	
longer shelf life and look at opportunities in UHT and 	
powdered milk

	

Structural issues

•	 Establish local dairy and processing facilities to
shorten transport legs, also optimise transport
through collaboration across the sector.
Summary
The dairy sector in Wales is performing well but there is
always room for improvement particularly in the area of
communication with the consumer, and lower risk
sourcing of inputs on farm and in the processing
operations.

Sources include: SA Marketplace (www.soilassociation.org/organicmarketplace), Graig Producers (www.graigproducers.co.uk), OFG
(www.organicfarmers.org.uk/classifieds).

1

A guide for organic businesses

21
Process sub-sector
Process sub-sector
Sustainability footprint charts –

PROCESS SUB-SECTOR
Key Issues

% (up to 50%)

Opportunities

% carbon

Materials

Excessive
packaging

Lightweight
recyclable

% cost
risk
% carbon

Sourcing

Overseas
suppliers

Local
suppliers

% cost
risk
% carbon

Inbound
Transport

Load
utilisation

Improved
planning

% cost
risk

Process 
Packaging

Resource usage
not measured
and targeted

% carbon

Measure and
target energy,
carbon and waste

% cost
risk

Primary
Transport

Secondary
Transport

Transport to
wholesaler or
distribution centre
not optimised

Long distances
and load utilisation
not optimised

% carbon

Optimise
routing and
combine loads

Optimise
routing and
combine loads

% cost
risk
% carbon
% cost
risk

Wholesale
 Retail

Prices paid for
organic too low.
Seasonal supply
variations

Energy
for cooking

% carbon

Direct sales to
key customers.
Exploit export
markets

All products
microwavable

% cost
risk
% carbon

Consumer

% cost
risk
% carbon

End
of Life

Waste not
recyclable

Recyclable
packaging

% cost
risk

% of CARBON in chain

KEY

22

A guide for organic businesses

% of COST in chain

Element of RISK in chain
LOW

MEDIUM

HIGH
Organic food processors in Wales include: egg packers,
vegetable packers, baby food manufacturers, pie makers,
bread makers and others.
The sustainability footprint chart (left) shows where the carbon,
sustainability risks, and costs are in the typical organic food
processing supply chain.
Understanding the Sustainability Footprint chart.
The data for the chart is based on sustainability work
by Weir TSCS with businesses in this sector and on
research findings in the meat and dairy sectors. The
results are representative only and meant to guide
businesses on where to focus their efforts.
Carbon – The graph shows the typical percentage
of the total carbon emissions of the supply chain for
each element of the chain
Costs - The graph shows how costs are typically
distributed across the supply chain, expressed as
a percentage.
Risk – The chart shows the typical level of risk of
poor sustainability performance in each element of
the chain

The footprint of this sector can be reduced in three
key areas:
•	 Sustainability aspects Measure and manage 	
	 sustainability aspects – water, energy, carbon 	
	 footprint, waste.
•	 Minimising waste Ensure you are aware of all waste 	
	 in the whole supply chain by carrying out a robust 	
	 evaluation and monitoring process.
•	
	
	
	
	
	
	
	

Material sourcing was shown to have the biggest 	
carbon footprint and the highest risk. This is because 	
sustainability of the raw materials is out of sight, out of 	
mind as it were. For organic producers choice of 	
suppliers is often limited so work needs to be focused 	
on helping suppliers improve their sustainability 	
performance. Simply finding out more and asking 	
questions is the first step to improving this area.

Businesses can address this area by:
What to do

More information

Identify sources of all key raw materials and packaging

Ask suppliers for evidence of origin

Use sustainability checklists with suppliers

10 questions about the sustainability of their supply

Assess sourcing risks and eliminate non-sustainable
sources

Review responses and supplier knowledge to define
actions

Source 100% of materials locally where practical

1. Seek to eliminate materials sourced from long
distances 2. Identify local suppliers

Encourage key suppliers to improve and to provide ideas
through best practice sharing sessions

Show leadership by setting up quarterly conference calls

Join buying groups to reduce purchasing costs of key
materials
Use buying groups and collaboration to optimise vehicle
utilisation

Look at both legs of the journey

Use buying groups and collaboration to reduce nonreturnable transit packaging
Use buying groups to reduce cost of indirect/non-core
items and services
Summary
The organic food processing sector in Wales has significant opportunities to work with suppliers to improve sustainability
performance for the benefit of all businesses in the supply chain.

A guide for organic businesses

23
Sustainability footprint charts –

Wholesale retail sector
Wholesale / retail sector
WHOLSALE/RETAIL
Key Issues

% (up to 50%)

Opportunities

% carbon

Materials

Excessive
packaging

Lightweight,
recyclable

% cost
risk

Sourcing

Overseas
suppliers,
high costs

% carbon

Local suppliers.
Use buying groups

% cost
risk

Inbound
Transport

Load
utilisation
and cost

% carbon

Coordinate
transport for
fewer deliveries

% cost
risk

Wholesale
 Retail

Resource usage
not fully measured
and targeted

% carbon

Measure and
target energy,
carbon and waste

% cost
risk

Transport
to Customer

High fuel and
maintenance
costs

% carbon

Driver
training

% cost
risk
% carbon

Consumer

Non-return
of boxes

Incentivise return
and re-use

% cost
risk
% carbon

End
of Life

Waste not
recyclable

Recyclable
packaging

% cost
risk

% of CARBON in chain

KEY

24

A guide for organic businesses

% of COST in chain

Element of RISK in chain
LOW

MEDIUM

HIGH
Wales has a whole range of different organic retail and wholesale
outlets, including farm shops, market stalls, retail shops, on-line
stores and wholesalers.
The sustainability footprint chart (left) shows where the carbon,
sustainability risks, and costs are in the typical organic wholesale
and retail business.
Understanding the Sustainability Footprint chart.
The data for the chart is based on sustainability work
by Weir TSCS with businesses in this sector and on
research findings in the meat and dairy sectors. The
results are representative only and meant to guide
businesses on where to focus their efforts
Carbon – The graph shows the typical percentage of
the total carbon emissions of the supply chain for each
element of the chain
Costs – The graph shows how costs are typically
distributed across the supply chain, expressed as a
percentage.
Risk – The chart shows the typical level of risk of poor
sustainability performance in each element of the chain
From the chart, it is clear that sourcing provides the
greatest opportunity for sustainability performance
improvements, and waste reduction is an area where
costs can also be reduced.
The footprint of this sector can be reduced by looking at
the following key areas:
•	 Sustainability Action Plan: Translate interest in
	 sustainability into a clear plan with objectives
	 and targets
•	 Measure and track performance: measuring key
	 indicators such as electricity, fuel for transport and
	 waste allows progress on this work to be tracked
•	
	
	
	

•	
	
	
	

Set wider sustainability targets for suppliers:
where choice is limited consider working with suppliers
to improve sustainability in areas such as waste,
labour, fuel and energy use

•	 Switch to local suppliers: where possible switch
	 to more local and sustainable suppliers or consider
	 alternative products to achieve better sustainability
	performance
•	 Buying groups: set up or join buying groups with non
	 competing companies to reduce cost of supplies
•	
	
	
	
	
	

Communication: develop messages to convey the
Organic Plus1 benefits for the consumer particularly
with regard to the appeal and benefits of e.g. more
seasonal consumption. Publicise improvements
in your sustainability performance and that of
your suppliers

•	 New market opportunities: identify opportunities
	 to sell to the hospitality trade including hotels,
	 restaurants and pubs
Summary
Wholesaling and retailing in Wales is performing well but
there is always room for improvement particularly in the
area of procurement and waste reduction. As with all
sectors, publicising the work done in this area is key to
enhancing the business reputation and bringing suppliers
with you.

Waste: set targets to reduce spoilage and write
downs and for zero waste to landfill. Consider
innovative ways to turn waste into profit e.g. setting up
an onsite café or outside catering unit

Sources include: SA Marketplace (www.soilassociation.org/organicmarketplace), Graig Producers (www.graigproducers.co.uk), OFG
(www.organicfarmers.org.uk/classifieds).

1

A guide for organic businesses

25
This toolkit will help
support you to reduce your
sustainability footprint
Next steps:
Need a plan? Use section three of this guide to produce your own Sustainability Action Plan.
Need help measuring and monitoring? See section four of this guide on tools to measure
and monitor sustainability.
Need help bringing people with you? It is essential to communicate what you are doing, read more in
section five of this guide on why communicating the benefits of your sustainability strategy is vital to its success.
Need inspiration? Read about the key issues and opportunities for your sector in our sustainability footprint
charts. These cover red meat, dairy, fresh produce, processing, wholesaling and retailing.
For more free online resources, join the Organic Supply Chain Forum
www.weir-tscs.com/organicforum/index.php

This Sustainability Toolkit has been developed by Better Organic Business Links
(BOBL). The BOBL project provides opportunities, information and training
for businesses in the Welsh organic sector to help them deliver better profitability,
sustainability and exemplary environmental performance.

Find out more
Write to:
Organic Centre Wales, IBERS, Aberystwyth University, SY23 3EE
Email:
bobl-project@aber.ac.uk
Visit us online at:
www.organiccentrewales.org.uk
Or call the BOBL Project c/o Organic Centre Wales:
Tel: 01970 622248

A guide for organic businesses

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Sustainability Toolkit for Organic Businesses

  • 1. Sustainability toolkit for organic businesses Better Organic Business Links Why sustainability matters and practical steps to achieve more in your business March 2012
  • 2. Foreword This guide has been developed by Better Organic Business Links (BOBL), an Organic Centre Wales project, in partnership with Weir Total Supply Chain Sustainability (Weir tscs). In 2011 Weir tscs carried out a project on behalf of BOBL to support organic businesses in Wales understand and improve the sustainability of their operations and their supply chains. Thanks to the participation of 27 Welsh organic businesses this sustainability project was able to engage with a good cross section of the organic sector, ranging from dairy to meat to fresh produce to processed products and to retail. The key findings of the project form the basis of this report.
  • 3. Contents 1 Why sustainability matters Understanding the terminology – footprints 2 3 Why should you be concerned about sustainability? Why does sustainability matter Key points How can you approach sustainability? 2 3 3 3 4 4 5 Your score 5 Image: Anthony Pugh How sustainable is your business? Sustainability Action Plan 6 Why use the SAP? What does the SAP cover? What will the SAP give you? How do you use the SAP 6 6 6 6 Developing your Sustainability Action Plan Where you are now 6 4 Image: Jeremy Moore Where you can make progress Setting priorities and targets Making it happen Tools to measure and monitor sustainability How to measure and monitor your progress? Tools to help you and where to find them 6 9 10 10 11 11 12 Environmental 12 Energy reduction 12 Carbon Footprinting 12 Social 12 Consumer attitudes 12 Economic 12 Energy Efficiency and renewable electricity 12 Water efficiency 13 Resource efficiency and waste reduction 13 Other Sources of information for sustainability initiatives 13 Efficiency and environment 13 Social 13 Economic 13 5 Why communicating the benefits of your sustainability strategy is vital to its success 14 Who needs to hear about your work Develop your skills and understanding How do you communicate? Sustainability footprint charts Meat sector 16 Fresh produce sector 18 Dairy produce sector 20 Process sub- sector 22 Wholesale / retail sector 24 14 15 15
  • 4. Why sustainability matters Imagine a three-legged stool. You can think of sustainability in your business as a three legged stool, each leg of the stool represents one of the sustainability pillars: environmental, economic and social. If one leg fails, the stool falls over. If one leg works loose the stool becomes wobbly, unstable and ultimately useless as a place to sit. What does sustainability mean for your business? sus.tain |səˈstān| v.t. 1. Carry weight of, hold up, keep from falling or sinking, esp. for prolong period. 2. =SUPPORT 7. Keep up or represent (part, character) adequately 8. Keep (sound effort, etc) going continuously.1 If sustainability in food processing is about keeping our food business from sinking or falling down in the long term, then we should consider the three legs of our stool: • Economic sustainability is about maintaining viable levels of profit in your business by smarter use of resources, transport and more sustainable sourcing. As energy prices rise, smart resource use will be essential for businesses. • Environmental sustainability is about minimising adverse impacts on the environment, making best use of resources and lowering risks, adopting safe new technologies and safeguarding your natural capital. • Social sustainability is about valuing and respecting your staff and community, equipping the workforce with the facts, helping to change attitudes and adopting and promoting a sustainable ethos. It is also about respecting other people in the supply chain by making ethical business decisions and honouring your obligations. Working with the whole supply chain You can’t have a sustainable business in isolation to be more sustainable involves working with the whole supply chain. That means everyone involved in getting food products from field to plate, from feed producers to farmers and growers right through to consumers. Businesses often have more influence than they realise. Much deeper change, leading to more robust food supply systems is achievable when you work with the whole chain. Opportunities for substantial cost savings It is clear that improving sustainability across the supply chain will help future proof all the businesses involved. In addition, you can make substantial cost savings in your business right now by adopting more sustainable practices, processes and attitudes. Source: Fowler H.W. and Fowler F.G. 1979. The Concise Oxford Dictionary of Current English. Oxford: Oxford University Press 1 Diagram 1: The food supply chain Current: Complex – High Cost – Unsustainable MATERIALS PERMITTED INPUTS WASTE RETAILERS WAREHOUSE Local Producer ENERGY PROCESSING PACKAGING DISTRIBUTORS WAREHOUSE RETAIL STORE 2 A guide for organic businesses Local Warehouse Local Shop Local Community LOCAL WAREHOUSE FARMERS MARKET CONSUMER Future: Lower cost – less environmental impact – ethical RECYCLING OR LANDFILL
  • 5. A child born in a wealthy country is likely to consume, waste and pollute more in his lifetime than 50 children born in developing nations. George Carey, former Archbishop of Canterbury Image: Jeremy Moore Understanding the terminology – footprints The term footprint is used to express or measure the impact on the environment of what we do. That includes use of natural resources, emissions, waste and pollution, and the impact on wildlife and communities. The most common measurements of environmental footprint that are used are ones that can be readily quantified – carbon, water and waste. The total emissions of green house gases in carbon equivalents from a product across its life cycle (from the production of raw materials through to manufacturing and disposal of the finished product) are described as the carbon footprint. Similarly, the waste footprint is the environmental, economic and social impact of the waste we leave behind, for example the landfill where nonrecycled materials end up. The water footprint refers to the total volume of fresh water used directly and indirectly to run and support the business. Footprints should include processes and practices in the whole supply chain. Why does sustainability matter “... sustainability means running the global environment - Earth Inc. - like a corporation: with depreciation, amortization and maintenance accounts. In other words, keeping the asset whole, rather than undermining your natural capital.” Maurice Strong the first Executive Director of the United Nations Environment Programme (UNEP). Diagram 2: Reasons to improve sustainability in your business Purc hasin g Waste “A child born in a wealthy country is likely to consume, waste and pollute more in his lifetime than 50 children born in developing nations. Our energy-burning lifestyles are pushing our planet to the point of no return.” Fuel Ener gy George Carey, former Archbishop of Canterbury Labo ur Why should you be concerned about sustainability? Re d ris uce k ce du ts Re os c Increase sales Your business Bo mo ost rale It’s a hot topic for good reason. A business that fails to address sustainability issues leaves itself vulnerable to future changes such as increasing energy costs and disruption of overseas supplies. On the flip side, opportunities for business growth and more robust food supply chains come from improving sustainability performance. Business survival depends on understanding sustainability issues and what threats or opportunities arise from them. Business growth depends on responding to a changing world. Businesses can lead the way for consumers on sustainability issues. Meet legislation Im co b pro nfi uye ve de r nc e Improve n reputatio – Organic us Pl A guide for organic businesses 3
  • 6. Boost morale: engage staff to help achieve sustainability targets Key points Meeting legislation on emissions reductions will demand change from businesses, being prepared in advance can help you manage budgets. Reducing costs needs no explanation. This makes economic and environmental sense and can be achieved through a variety of measures including improving your use of resources, for example materials, energy and transport. This gives some protection against price rises and in areas like waste reduction empowers the business to take control of processes where unsustainable practices incur penalties, for example landfill tax. Reducing risk is about looking at areas of current or future vulnerability such as sourcing products from overseas. Political, financial or environmental instability can affect costs and supply. Do you run an active company suggestion scheme on sustainability ideas? Boost morale: engaging staff to help achieve sustainability targets will boost morale within the business and can affirm or lead to changes of behaviour at home from staff and their families such as reducing energy use, using the car less or recycling more. Active work in this area can enhance your reputation and so increase sales. Improve your reputation by first understanding consumer concerns in this area and then shouting about the work you are doing. Add information to your website, terms of trading, invoices, brochures, product specifications and staff manuals. In particular, highlight where your activities go beyond the organic standards, commonly known as organic plus attributes. 4 A guide for organic businesses Read section 5 of this guide: Why communicating the benefits of your sustainability strategy is vital to its success. Improve buyer confidence by being proactive in this area. It allows you to budget for sustainability improvements over time and demonstrates a commitment to long term supply, which will encourage strong trading relationships with customers and consumers. Reduce risk of shortages of imported materials or poor performance by overseas suppliers by moving towards local sourcing and join or set up buying groups to optimise vehicle utilisation and reduce costs. How can you approach sustainability? Sustainability requires a holistic approach to business – extending from the principles of organic to the whole supply chain and beyond: • Attitudes and behaviours of staff, suppliers, customers and consumers. • Operational supply chain issues such as sourcing, transport and logistics. • Product design, promotion and sales. For any change to happen you have to measure where you are at now, set targets for change and monitor results of new attitudes, operations and product development. To do that you need a Sustainability Action Plan (SAP). A SAP is a programme of actions to drive improvements in your business; a guide on how to develop a SAP is included in section 3 of this guide. Image: Jeremy Moore
  • 7. How sustainable is your business As an organic business you will be aware of sustainability issues and may already be doing some good work, for example, reducing waste going to landfill, but perhaps you haven’t applied sustainability thinking to all parts of your business and to your supply chain. Take this quiz and find out if you still have work to do. How The quiz will take you less than 10 minutes to complete. Score 1 for yes, 0 for no, then find out what your score means. Your score: 0-4 A low score indicates a lack of management control. Your business may also need a greater focus on costs to stay in business. 5-7 Some basic areas are under control. Look at the remaining areas, identify what is preventing full implementation and prioritise areas for action. 8-10 Good progress and good level of control. Look at your results – what else can be done to improve? Set further improvement targets and continue to track. top tip check Do you source the majority of supplies and services locally? Do you have an ethical or fair trade policy with suppliers? Do you order in supplies in bulk containers or on pallets? Do you avoid packaging, use returnables or use packaging from renewable resources? Do you measure and monitor electricity and fuel use? Have you set targets to reduce electricity use? Have you set targets to reduce fuel use? Do you run an active company suggestion scheme on Sustainability ideas? Do you ensure that all vehicles leave with full loads? Do you ensure that vehicle tyres are at the correct pressure on a weekly basis? This quiz is only a quick check to help you understand how much more you need to do as a business. Your score will reveal which areas are on your radar and where you could do more. Many businesses are gaining the benefits of lower costs and higher reputation by taking a structured approach to sustainability. If you haven’t already done so, develop a Sustainability Action Plan. A guide for organic businesses 5
  • 8. Sustainability Action Plan This guide provides a template to help you prepare your own Sustainability Action Plan (SAP). It has been provided specifically for businesses in the organic sector in Wales but it is relevant for all Welsh food businesses wanting to operate more sustainably. Why use the SAP? What will the SAP give you? The SAP gives you a programme of actions to improve your business financially, environmentally and socially. Writing down your goals and having a plan of how to achieve them gives you a better chance of success. More than that, completing the SAP is a commitment to involve employees, suppliers, customers and other stakeholders in a practical journey. - A clear picture of your status in each key area: where you are now What does the SAP cover? It can cover: - Policies and strategies: what you intend to do and how you will do it - Processes and measurement: what areas will be covered and how you will track progress - Employee engagement: how to get staff involved and motivated - Social impacts: your relationship with your local community, ethical issues - A set of objectives and desired benefits: where you want to be and why - A time frame for each to be achieved: when you expect to reach your goals - A set of actions to be carried out: how you will get there - Clear responsibilities and ownership: who will take action How do you use the SAP There are four parts to the SAP: 1. Where you are now 2. Where you can make progress 3. Setting priorities and targets 4. Making it happen - Resource efficiency: materials, energy, water - Operational efficiency: manufacturing, logistics (for example distribution) - Environmental impacts: emissions, waste - Purchasing: fair practices, sustainable sources Developing your Sustainability Action Plan 1. Where you are now This part of the SAP asks you to take a good hard look at how you are performing across different areas: strategy and processes, communication and reputation management, resource use and business operations. Section four of this guide signposts you to tools to measure and monitor your business to help you fulfil your sustainability goals. 6 A guide for organic businesses
  • 9. How well does your business meet these standards? Table 1: Where you are now Sustainability element Fully Mostly Partly NOT Strategy and processes Formal sustainability policies have been created Strategies are being carried out The board is fully committed Is sustainability thinking adopted across the whole business? Sustainability data such as weight of waste to landfill, electricity and water consumption figures, fuel consumption figures, customer attitudes to waste, food miles etc are collected, reported and tracked Staff pay depends on performance on sustainability issues Communications and reputation management Sustainability targets are publicised and progress reported on a regular basis Is your business recognised for its work on sustainability e.g. through press coverage, awards, customer feedback, buyer confidence How engaged are you with your staff and your community? All staff understand your sustainability policies All staff are actively involved in working towards your sustainability goals Actively supporting programmes that benefit the economic, environmental and social well being of the community (budgets set aside and ring fenced) Marketing department understands sustainability issues and applies sustainability thinking to product development and promotion Engaging with customers and trading partners to develop more sustainable practices and products Resource use and impacts Energy Energy (oil, coal, gas, electricity and fuel) use is recorded and tracked Energy reduction targets set Energy champion appointed to drive improvements Renewable energy options evaluated, for example solar, PV, wind, hydro, biomass Renewable energy systems installed Carbon footprint Business carbon footprint measured Business carbon footprint reduction targets set Supply chain carbon footprint measured Supply chain carbon footprint reduction targets set A guide for organic businesses 7
  • 10. Sustainability element Water Water use is measured Targets set for water use reduction More sustainable water systems evaluated, for example recycling, renewable boreholes, rainwater capture More sustainable water systems installed Waste All waste is measured and segregated Targets set for reducing all waste streams Zero waste to landfill target met Materials Products designed with sustainability in mind Materials from renewable sources are used where possible All packaging minimised and recyclable Footprints Waste, carbon and water footprints of offices are measured Targets set to reduce office footprints Waste, carbon and water footprints of warehouses are measured Targets set to reduce warehouse footprints Waste, carbon and water footprints of employee travel are measured Targets set to reduce employee travel footprints Efficient operations Stock (materials and products) kept to a minimum through effective planning Waste or spoilage kept to a minimum Equipment measured and assessed for effectiveness, for example: would a higher power machine give you greater throughput for less cost/energy use per item? Targets set for improving operational efficiency Co-ordinate inbound and outbound transport to minimise mileage and fuel use Managing supplies Materials and suppliers are regularly assessed against sustainability criteria Critical suppliers are audited to ensure risks are eliminated, for example failure of supply or customer trust Sharing of best practice with supplier groups to improve performance and encourage innovation 8 A guide for organic businesses Fully Mostly Partly NOT
  • 11. 2. Where you can make progress The next step is to identify the gap between your current status and the standard of excellence, and then decide how far you want to close those gaps – what is a good target to aim for. You will need to take account of what the benefits will be to your business and what resources (people, investment) may be needed to reach those targets. A good way of deciding on the targets and to set priorities is to get key staff members and managers together and look at each opportunity that the Sustainability audit has identified. Take everyone off site so you can really focus on the work in hand. Together you can make an estimate of the impact and time/effort required to achieve the target. Table 2: Where you can make progress Area Opportunity Action Sustainability Impact Financial benefits Timing Resources Sustainability element What is the target? What needs to happen? High/med/low High/med/low Months People, investment e.g. Measurements and reporting Monthly sustainability report Process for collating data High Medium 3 Technical manager, smart meter e.g. Packaging All packaging minimised and recyclable Review current packaging and look at switching where appropriate to alternative supplies Medium Medium 6 Marketing manager e.g. Waste Zero waste to landfill Measure and monitor current waste and processing. Introduce waste policy and train staff High Medium 9 Technical manager Before finally confirming the priorities for action you need to review how these fit into your overall business strategy and other programmes that may be underway or planned. These will determine the timings. Create a simple “dashboard” to show your progress, it could for example look at energy, water and waste. Only measure things that make sense, so if you don’t use or receive any packaging don’t measure packaging. See page 11 for more information on “dashboards”. Diagram 4: Sustainability Action Programme Diagram 3: Sustainability Opportunity Map Impact Business Benefit Sustainability Opportunity Map Sustainability Action Programme High Optimised Packaging Tyre Pressures Med New Lighting 5. Packaging Optimisation 4. Truck Utilisation Truck Utilisation 3. Tyre Pressures 2. New Lighting DashBoard 1. Dashboard Low 6 12 18 Months 6 12 18 Months A guide for organic businesses 9
  • 12. 3. Setting priorities and targets Having confirmed the priorities, the final step is to prepare an action plan with SMART goals, and to assign ownership of the actions (SMART goals are Specific, Measurable, Attainable, Realistic and Timely). A good way to do this is to nominate champions for different areas, for example energy or waste. This is a useful template for the action plan. Table 3: Setting priorities and targets Ref No SMART objective Action Owner Start Date Finish Date e.g. A1 Enable board to report to key stakeholders on sustainability progress Develop monthly sustainability report for board with 10 main indicators Technical Manager 01-Feb-12 01-May-12 4. Making it happen Finally, you need to get started and make it happen. Regularly reviewing progress against the SAP will help keep you going. It is usually best to set up a senior team to review these on a quarterly basis, and adjust the plan if progress is slow or other priorities and opportunities emerge. Although some of the steps may seem very long term you need to remember that every cost saving measure you take is a positive benefit for your business. Sustainability is not just a buzz word, it means building a robust, strong business now and for the future. Sustainability is not just a buzz word, it means building a robust, strong business now and for the future. 10 A guide for organic businesses
  • 13. Tools to measure and monitor sustainability Sustainability in business means operating today in a way that doesn’t compromise our future. It means balancing the environmental, social, and economic aspects of your business. How to measure and monitor your progress Social Bearable Equitable Sustainable Environment Viable Economic Over recent years there has been coordinated effort to define what is meant by sustainability and to translate it into something meaningful that can be measured and tracked. Organisations like the World Resources Institute (WRI) and Business in the Community (BITC) have developed systems that include reporting on ethical issues such as corporate and social responsibility. For sustainability to fully progress the three sustainability indicators (environmental, social and economic) need to be balanced. By choosing the right indicators and focusing on the important ones, many businesses are able to track these with a “Sustainability Dashboard”, a type of report, used to drive improvement. It is important that meaningful targets are set and progress measured against these so that all stakeholders, including your own employees, can understand the on going progress your business. Listed here, are some key ones that businesses should be tracking - most should be measured at least monthly except where indicated. Category Indicator Unit of measure Source of data Environmental Energy Usually measured in kWh Utility bills Fuel Measured in litres or kWh Fuel bills Carbon Footprint Tonnes CO2e. Operational scope (1 and 2) mainly covers own energy and fuel use Utility fuel usage converted to Tonnes CO2e Water Measured in cubic metres Utility bills Waste Net waste, measured in kg or tonnes Waste contractor Waste to landfill Amount (kg) and % of total wastage that is not recycled Waste contractor Employee satisfaction Measured by annual surveys Own staff Community engagement % of annual marketing budget allocated and £ per employee Accounts Ethical trading % of suppliers and purchases covered Annual review of suppliers by ethical trading policies Profitability Net margin over sales Accounts Materials efficiency % Yield from materials (rest is waste) Production measurement Transport efficiency Vehicle Utilisation Transport contractor Social Economic A guide for organic businesses 11
  • 14. Tools to help you and where to find them To share best practice and for more free online resources, join the Organic Supply Chain Forum http://www.weir-tscs.com/organicforum/index.php Energy reduction • Mayday Network Tel: 0207 566 8650 www.maydaynetwork.com/journey • DairyCo (for dairy farms) Tel: 0247 669 2051 www.dairyco.net/farming-info-centre/tools-information/energy-cost-calculators/introduction.aspx Carbon Footprinting • Carbon footprinting for farm businesses, by Tony Little and Laurence Smith, is an Organic Centre Wales publication that gives in depth reviews of nine carbon footprint calculators www.organiccentrewales.org.uk/uploads/carbcalcfull_report_a4.pdf • Weir-TSCS Tel: 0845 450 4021 www.weir-tscs.com • Best Foot Forward Tel: 0186 525 0818 www.footprintreporter.com • Carbon Footprint Ltd Tel: 0125 634 5645 www.carbonfootprint.com • EcoStudio Tel: 0845 269 6105 www.ecostudio.org.uk Resource efficiency • Environment Agency Wales Tel: 0370 850 6506 - resource efficiency and environmental performance www.environment-agency.gov.uk/cy/busnes/pynciau/perfformiad/default.aspx Social • Ethics a toolkit for Welsh organic businesses produced by the Food Ethics Council for Organic Centre Wales www.organiccentrewales.org.uk/uploads/ethics_english__web.pdf • Business in the Community (BITC) Tel: 0207 566 8650 - Responsible Business Check-up http://www.bitc.org.uk/responsible_business_check_up/index.html • Ethical Trade Initiative (ETI) Tel: 0207 841 4350 - The ETI Workbook A comprehensive, step-by-step guide for companies on putting ethical trade into practice www.ethicaltrade.org/resources/key-eti-resources/eti-workbook • Soil Association ethical trade certification Tel: 0117 914 2406 http://www.soilassociation.org/ethicaltrade Consumer attitudes • Consumer attitudes towards organic food. Key findings, produced by Beaufort Research for Organic Centre Wales www.organiccentrewales.org.uk/uploads/11265_beaufortresearchleaflet_final_lr.pdf • IGD Shopper tracker reports www.IGD.com • Survey Monkey, a free online tool to create your own customer or staff surveys www.surveymonkey.com Economic - general accounting software for small businesses: • SAGE www.sage.co.uk, QUICKBOOKS www.intuit.co.uk/quickbooks, MYBIZ www.mybiz.co.uk • Farm management software FARMPLAN www.farmplan.co.uk • Solar Accounts www.solaraccounts.co.uk Energy Efficiency and renewable electricity • Energy Saving Trust Wales Tel: 0800 512 012 www.energysavingtrust.org.uk/wales • Carbon Trust Wales Tel: 0800 085 2005 www.carbontrust.co.uk/wales/wales/pages/default.aspx • Carmarthenshire Energy Agency Tel: 01944 230003 www.ynnisirgar.org.uk 12 A guide for organic businesses
  • 15. • • • • • South East Wales Energy Agency Tel: 0800 512012 www.sewenergy.org.uk Low Carbon Buildings Programme Tel: 0800 915 0990 www.lowcarbonbuildings.org.uk Energy Efficiency Advice Centre Tel: 0800 512012 www.actonenergy.org.uk Centre for Alternative Technology Tel. 01654 705950 www.cat.org.uk Soil Association Low farming carbon project Tel: 0756 436 0914 www.soilassociation.org/lowcarbon Water efficiency • Wrap, the Rippleeffect is a free water efficiency initiative that can benefit businesses of all sizes Tel: 0808 100 2040 http://www.wrap.org.uk/business/sme/rippleffect/ • Waterwise Tel: 0203 463 2400 www.waterwise.org.uk Resource efficiency and waste reduction • WRAP Cymru Tel: 0292 044 8090 http://www.wrapcymru.org.uk/ • IGD - Free guide and toolkits on waste prevention Tel. 01923 857141 http://www.igd.com/index.asp?id=1fid=5sid=43tid=158foid=127 Other sources of information for sustainability initiatives • • • • • Organic Centre Wales - Resource centre for organic businesses Tel: 01970 622248 www.organiccentrewales.org.uk Publication - Why sustainable agri-tourism is a market opportunity for the organic sector, a BOBL publication, www.organiccentrewales.org.uk/uploads/agritourisme_july11.pdf Farming Connect provide one-to-one support, knowledge, expertise, training and advisory services, tailored to your needs. Many are fully funded or subsidised by 80%. They can all help you and your family run your business more efficiently and safeguard the future of your farm business Tel: 0845 600 0813 Soil Association - A membership charity campaigning for planet-friendly organic food and farming Tel: 0117 314 5000 www.soilassociation.org.uk Centre for Alternative Land Use (CALU) – Tel: 01248 680450 www.calu.bangor.ac.uk Publication - Managing energy and carbon. The farmer’s guide to energy audits, www.calu.bangor.ac.uk/Technical%20leaflets/Energyauditmanual.pdf Hybu Cig Cymru - Meat Promotion Wales (HCC) is the industry-led organisation responsible for the development, promotion and marketing of Welsh red meat. Tel: 01970 625050 www.hccmpw.org.uk Publication – A sustainable future – the welsh red meat roadmap http://www.hccmpw.org.uk/medialibrary/publications/HCC%20Sustainable%20Red%20Meat%2 Roadmap%20English%20LR.pdf Efficiency and environment • Business Wales – Environment and efficiency Tel: 03000 603000 http://business.wales.gov.uk/bdotg/action/layer?site=230topicId=1079068363 Social • United Nations Global Compact - Fair business practices www.unglobalcompact.org/ • Business in the Community (BITC) - Workforce and community engagement Tel: 0207 566 8650 www.bitc.org.uk • Ethical Trading Initiative Tel: 0207 841 4350 www.ethicaltrade.org/ • The Food Ethics Council Tel: 0845 345 8574 www.foodethicscouncil.org Economic • Business Wales - Business advice for new and established businesses from the Welsh Government. Tel: 03000 603000 http://business.wales.gov.uk Finance and grants • • • For the latest grants and government support available call 0300 060 3000 or visit http://business.wales.gov.uk/bdotg/action/layer?r.l1=1073858790r.l2=1084705429r.s=smsite= 230topicId=1073866776 Farming Connect provide one-to-one support, knowledge, expertise, training and advisory services, tailored to your needs. Many are fully funded or subsidised by 80%. Tel: 0845 600 0813 For information about support for the organic sector contact Organic Centre Wales Tel: 01970 622248 www.organiccentrewales.org.uk Organic Centre Wales and its partners cannot accept responsibility for the consequences of any actions taken on the basis of the information in this document or other publications. A guide for organic businesses 13
  • 16. Why communicating the benefits of your sustainability strategy is vital to its success Every business owner understands that lack of profit over an extended period of time spells disaster so working hard to achieve profit is a given. However, the benefits of good sustainability performance are less obvious. If people don’t see the benefits it will be hard to engage them. In order to get people on board you need to actively communicate your vision, your goals, your progress and the tangible benefits for all concerned. These are: Business – improved sales, financial performance and reputation Environment – reduce dependence on non-renewable resources and maintain natural capital Suppliers – reduce costs, risk and carbon footprints For instance: • Actively promote the benefits of improved sustainability performance e.g. cost savings, increased reputation, resilience to change in the future such as energy and fuel price rises Customers – strengthen relationships by being a forward thinking supplier • Lead by example, share the goals and activity of your own Sustainability Action Plan (SAP (where appropriate) and regularly communicate progress made Consumers – working on their behalf to make their choices more sustainable • Share tools such as diagnostic tools and SAP templates with suppliers Who needs to hear about your work on sustainability? • Encourage measuring and monitoring of sustainability performance by suppliers and communicate this to your customers Staff – boost morale and provide strong leadership Everyone: suppliers, staff, customers and consumers. It is not enough to simply ‘do’ work to improve your sustainability performance because that performance overall depends on the work others do too. Sustainability has to be more than greenwash, it has to permeate at every level and become a part of ‘whole company thinking’. Sustainability thinking applies to: • Actions and behaviours • Operational and supply chain • Product design, promotion and sales Communicating with suppliers As a buyer you can influence the sustainability performance of your suppliers. To do this you need to engage your suppliers who may see only the costs rather than the benefits. Therefore it is important to illustrate the short and long term benefits of this work for your suppliers and the whole supply chain. 14 A guide for organic businesses Communicating with staff Everyone in the supply chain, from the tractor driver to the line worker, the marketing officer to the till operator, needs to adopt this type of thinking. To achieve this requires changing attitudes. This takes time and focused activity such as: • Involving representatives from every area of the business when developing the SAP • Running workshops to understand the benefits of improved sustainability performance in your business • Appointing a Sustainability Champion within your business • Appointing an energy Champion • Random monthly interviews with staff to test familiarity with and understanding of the Sustainability Action Plan (SAP) actions
  • 17. • Communicating with customers Wherever you are in the supply chain, make it easier for end consumers to understand the benefits of your work in this area. For example, publish specific targets and progress reports on: • Waste to landfill. • Average miles travelled by product to customer • Water consumption per unit of output • Carbon footprint Communicating with consumers The work in your Sustainability Action Plan (SAP) will go beyond the requirements of the organic standards. In these cases, you need to emphasise these ‘organic plus’ attributes. In Farmer consumer partnerships – How to successfully communicate the values of organic food2, case studies from across Europe demonstrate how certain organic plus attributes appeal to consumers. From a marketing point of view, outstanding work on sustainability performance, e.g. local sourcing, can be used to make your products stand out. • Make use of free social media sites to keep an online journal of your sustainability progress. This can be a written journal or make it more interesting by creating a photo diary on sites like Blipfoto, or create a video diary using You Tube. For example, post a picture of new hessian bags arriving and mention how they are made from sustainable materials and help reduce our dependence on plastic bags. • Post your progress on your blog or business Facebook page. This is particularly useful for small retailers who may have limited time and budgets for promotion. Engage with product design and marketing teams so that sustainability analysis becomes part of any development of new products, promotion and sales material Consider creating appealing point of sale material such as shelf edge cards or pop up banners which use graphics to illustrate performance and progress Work in this area can provide good material for press releases, newsletter articles and blog posts on your own or other business’ blogs. How can you improve your communication overall? Understand consumer attitudes Join forums Keep a sustainability journal online Become a ‘go to’ business sustainability commentator for the press Develop your skills and understanding • How do you communicate? Use face-to-face opportunities during staff meetings, training sessions, with customers during buying negotiations and with consumers at food events and every day at the checkout, to put out positive messages about the work you are doing in this area. In print, for instance in your: • Packaging • Point of sale material • Staff induction and training manuals • Invoicing and terms of trade templates • Posters in the workplace Online, for instance update your: • Website • Email signatures • E-newsletters (for staff, suppliers, customers and consumers if appropriate) • Social media such as Facebook, Twitter, You Tube, Flickr, LinkedIn and Google Plus • Specialist Industry forums such as The Organic Supply Chain Forum and relevant groups on platforms like LinkedIn e.g. Sustainability Working Group How often do you need to communicate your progress? If you regularly communicate your progress your business will become strongly identified with positive action in this important area. • Understand your customers’ concerns in this area. Find details of consumer surveys and tools to run your own surveys in section 4 of this guide: Tools to monitor and measure sustainability performance. • Join industry forums such as Business in the Community, Profit Through Ethics. Contribute to discussions, and learn from others. • Let the relevant press know that you have a Sustainability Champion able to provide industry comment on matters like new legislation on for example, waste, energy and issues to do with business sustainability performance. 2 Zander, K. et al 2010. Farmer consumer partnerships - How to successfully communicate the values of organic food: a handbook. Kassel: Department of Agricultural and Food Marketing, University of Kassel. Available on www.orgprints.org, or contact Organic Centre Wales for a copy. A guide for organic businesses 15
  • 18. Meat sector Meat sector Sustainability footprint charts – MEAT Key Issues Excessive packaging % (up to 50%) Opportunities Lightweight recyclable % carbon Materials % cost risk % carbon Sourcing Overseas suppliers Local suppliers % cost risk % carbon Inbound Transport Load utilisation Combine with other loads % cost risk On Farm Resource usage not measured and targeted % carbon Integrated planned and measured system % cost risk Process Packaging No energy management system % carbon Reduce energy and carbon % cost risk Primary Transport Load utilisation and food miles % carbon Optimise routing and combine loads % cost risk Secondary Transport Long distances and load utilisation not optimised % carbon Optimise routing and combine loads % cost risk Wholesale Retail Prices paid for organic too low. Seasonal supply variations Energy for cooking % carbon Direct sales to key customers. Exploit export markets All products microwavable % cost risk % carbon Consumer % cost risk % carbon End of Life Waste not recycled Recyclable packaging % cost risk KEY 16 A guide for organic businesses % of CARBON in chain % of COST in chain Element of RISK in chain LOW MEDIUM HIGH
  • 19. The organic meat sector supply chain in Wales comprises a wide range of feed suppliers, farmers, marketing and distribution companies, abattoirs, transporters and trade and retail customers. The sustainability footprint chart for the meat sector (left) shows where the carbon, sustainability risks and costs are in the typical organic meat supply chain. Understanding the Sustainability Footprint chart. The data for the chart is based on sustainability work by Weir TSCS with businesses in this sector and on research findings in the meat and dairy sectors. The results are representative only and meant to guide businesses on where to focus their efforts • Reduction in energy and water use in processing and packing. Opportunities for renewable energy production and better control/re-use of water to be explored • Collaborate on marketing and distribution to get better prices and margins, essential for farmers to stay in business and develop their farms Carbon – The graph shows the typical percentage of the total carbon emissions of the supply chain for each element of the chain • Costs - The graph shows how costs are typically distributed across the supply chain, expressed as a percentage • Collaborative approach to reducing waste, particularly unused animal by-products, looking at technology such as Anaerobic Digestion Risk – The chart shows the typical level of risk of poor sustainability performance in each element of the chain The footprint of this sector is significant, particularly due to the carbon emissions associated with animal production. However, there are also opportunities to reduce the footprint across the rest of the supply chain, such as improving transport efficiency, reducing energy and water consumption in processing and packing and reducing process and packaging waste. Organic beef and sheep farmers can help to improve their own sustainability by focusing on these key areas: • Animal feed: Move towards more self-sufficiency for animal feeds to minimise effects of rising feed prices, either by producing feeds on farm, commissioning local arable production or via buying groups1. • Input costs control: Measure input costs – feed, labour, manure and fuel – and manage using simple farm or business management software. Take advantage of buying groups to reduce costs further • Impacts on the environment: Measure and manage sustainability aspects – energy, carbon footprint (use one of the free services available), waste (particularly packaging used on feed), and soil quality. Set annual targets for reduction and track progress. • Cooperatives and marketing or distribution groups: Work with such groups to get higher sales value and volume of animals and to make better use of shared transportation to the abattoir For the sector there are wider structural issues that need review. This will require effective collaborative working involving all the members of the chain: Develop sales of high quality meat to the restaurant and food service sector to increase volume and margins. A good example is that achieved by Rhug Estates • Reduction in use of packaging, for feedstuffs but more importantly for final product. This is clearly in the domain of the retailers Structural issues • Re-establishment of more local abattoirs. The opportunity for more local plants to reduce live animal transport,improve freshness and provide local employment, needs to be evaluated. Summary The organic red meat sector is particularly important as livestock farmers make up 85 percent of organic farmers across Wales. The sector has unique challenges particularly in terms of abattoirs but a co-ordinated approach to sustainability can continue to build robust supply chains that improve the business performance of all parties in the chain and help meet future challenges. The new Hybu Cig Cymru2 document, A Sustainable Future - The Welsh Red Meat Roadmap3, offers stakeholders across the supply chain information on greenhouse gases and climate change and helps support the red meat industry to protect the Welsh environment and to develop sustainable farming methods. It presents detailed, practical ways to further improve performance, achieve the new and agreed goals, while adhering to the business model essentials of improving efficiency and profitability. See also HCC’s useful summary document ‘10 steps to a lesser footprint’. • Co-ordinated transport of animals to abattoir. Graig Producers’ operation is a good example of best practice in this area Sources include: SA Marketplace (www.soilassociation.org/organicmarketplace), Graig Producers (www.graigproducers.co.uk), OFG (www.organicfarmers.org.uk/classifieds). 1 2 See HCC website http://tinyurl.com/3sq6chh 3 See http://tinyurl.com/7vwhsn2 A guide for organic businesses 17
  • 20. Sustainability footprint charts – Fresh produce sector Fresh produce sector FRESH PRODUCE Key Issues % (up to 50%) Opportunities % carbon Materials Non-returnable packaging Returnable boxes or crates % cost risk Sourcing Rising input costs % carbon Join buying groups to take advantage of lower costs % cost risk % carbon Inbound Transport Load utilisation Improved planning % cost risk On Farm Resource usage not measured and targeted % carbon Integrated planned and measured system % cost risk Process Packaging Resource usage not fully measured and targeted % carbon Measure and target energy, carbon and waste % cost risk Primary Transport Secondary Transport Transport to wholesaler or distribution centre not optimised Long distances and load utilisation not optimised % carbon Optimise routing and combine loads Optimise routing and combine loads % cost risk % carbon % cost risk Wholesale Retail Consumer End of Life KEY 18 A guide for organic businesses Prices paid for organic too low. Seasonal supply variations Value not fully recognised to justify price premium More information on pack and promotional material Short shelf life and non-recyclable packaging waste % carbon Direct sales to key customers. Exploit export markets Provide more incentives to consumers to recycle % of CARBON in chain % of COST in chain % cost risk % carbon % cost risk % carbon % cost risk Element of RISK in chain LOW MEDIUM HIGH
  • 21. As organic horticultural production in Wales is relatively limited, this sector relies quite heavily on sourcing produce from further afield, across the UK and overseas. The sustainability footprint chart (left) shows where the carbon, sustainability risks, and costs are in the typical organic fresh produce supply chain. Understanding the Sustainability Footprint chart. The data for the chart is based on sustainability work by Weir TSCS with businesses in this sector and on research findings in the meat and dairy sectors. The results are representative only and meant to guide businesses on where to focus their efforts • Co-operatives and marketing or distribution groups: collaborate where possible to achieve economies of scale, this can be with packing, transport and marketing. Work with groups to get higher sales value and volume of crops and make better use of shared transport Carbon – The graph shows the typical percentage of the total carbon emissions of the supply chain for each element of the chain For the sector there are wider issues that need to be reviewed: Costs - The graph shows how costs are typically distributed across the supply chain, expressed as a percentage. Risk – The chart shows the typical level of risk of poor sustainability performance in each element of the chain • Communication – develop messages to convey what the Organic Plus1 benefits work in this area brings to the consumer, particularly with regard to the appeal and benefits of e.g. more seasonal consumption. Publicise success in improving your sustainability performance • Training drivers – to minimise transport costs The footprint of this sector can be reduced in four key areas: • Waste – set targets to reduce spoilage and for zero waste to landfill • On farm fruit and vegetable production • • Transport optimisation • Sustainability communications Organic fruit and vegetable growers can help reduce their sustainability footprint by: • Understanding the importance and benefits of improved sustainability performance: Processors and businesses further up the chain can assist growers to develop their own Sustainability Action Plan • Input costs: Measure and manage input costs – labour, manure and fuel Procurement – work towards more sustainable sourcing throughout the supply chain by setting standards for suppliers and identifying more sustainable sources Summary The fresh produce sector in Wales is performing well but there is always room for improvement particularly in the area of raising your reputation with consumers, lowering the risk of sourcing inputs on farm and in the processing operations, and cost reductions in terms of labour, wastage, electricity and fuel. • Sustainability aspects: Measure and manage sustainability aspects – water, energy, carbon footprint, waste, soil quality • Packing: Carry out packing of produce close to field to reduce transport and to preserve freshness and appearance • Buying groups: reduce the cost of inputs by joining or forming buying groups with non competing companies Sources include: SA Marketplace (www.soilassociation.org/organicmarketplace), Graig Producers (www.graigproducers.co.uk), OFG (www.organicfarmers.org.uk/classifieds). 1 A guide for organic businesses 19
  • 22. Dairyproduce sector Dairy produce sector Sustainability footprint charts – DAIRY Key Issues Materials Sourcing Excessive packaging and some not recyclable Overseas suppliers of feed ingredients % (up to 50%) Opportunities % carbon Lightweight recyclable % cost risk % carbon Local suppliers % cost risk Inbound Transport Long distances and load utilisation not optimised % carbon Combine with other loads % cost risk On Farm Resource usage not measured and targeted % carbon Integrated planned and measured system % cost risk Process Packaging Resource usage not fully measured and targeted % carbon Measure and target energy, carbon and waste % cost risk Primary Transport Milk collection transport not optimised % carbon Optimise routing and combine loads % cost risk Secondary Transport Long distances and load utilisation not optimised % carbon Optimise routing and combine loads % cost risk Wholesale Retail Consumer End of Life KEY 20 A guide for organic businesses Prices paid for organic too low. Seasonal supply variations Limited recognition of value % carbon Direct sales to key customers. Exploit export markets More information on pack and promotional material Short shelf life and non recyclable packaging waste % cost risk % carbon % cost risk % carbon Provide more incentives to consumer to recycle % of CARBON in chain % of COST in chain % cost risk Element of RISK in chain LOW MEDIUM HIGH
  • 23. The organic dairy sector supply chain in Wales comprises a wide range of feed suppliers, farmers, marketing and distribution companies, processing and bottling plants, transporters and trade and retail customers. The sustainability footprint chart (left) shows where the carbon, sustainability risks, and costs are in the typical organic dairy supply chain. Understanding the Sustainability Footprint chart. The data for the chart is based on sustainability work by Weir TSCS with businesses in this sector and on research findings in the meat and dairy sectors. The results are representative only and meant to guide businesses on where to focus their efforts Carbon – The graph shows the typical percentage of the total carbon emissions of the supply chain for each element of the chain Costs - The graph shows how costs are typically distributed across the supply chain, expressed as a percentage. Risk – The chart shows the typical level of risk of poor sustainability performance in each element of the chain The footprint of this sector can be reduced in four key areas: • On farm milk production • Sustainability management across the whole chain • Logistics optimisation – using best practice to get the most out of your supply chain • Sustainability communications Organic dairy farmers can help reduce their sustainability footprint by: • Understanding the importance and benefits of improved sustainability performance: processors and businesses further up the chain can assist dairy farmers to develop their own Sustainability Action Plan. • Animal feed: Move towards more self-sufficiency for animal feeds to minimise effects of rising feed prices, either by producing feeds on farm, commissioning local arable production or via buying groups. Develop a better understanding of risks and costs • Greenhouse gas emissions (GHG): use e.g. DairyCo’s carbon footprint service to gain an accurate picture of GHG emissions on individual dairy farms and for operations in the wider chain • Input costs: Measure and manage input costs – feed labour, manure and fuel • Sustainability aspects: Measure and manage sustainability aspects – water, energy, carbon footprint, waste, soil quality • Learn from others: Share best practice among members of the same co-operative For the sector there are wider issues that need to be reviewed: • Communication – develop messages to convey the Organic Plus1 benefits for the consumer • Packaging – continue developments to reduce carbon footprint of packaging • Procurement – work towards more sustainable sourcing throughout the supply chain • Training in sustainability procurement – particularly for procurement officers and dairy farming members • A strategic consideration could be to diversify and develop premium products such as filtered milk for longer shelf life and look at opportunities in UHT and powdered milk Structural issues • Establish local dairy and processing facilities to shorten transport legs, also optimise transport through collaboration across the sector. Summary The dairy sector in Wales is performing well but there is always room for improvement particularly in the area of communication with the consumer, and lower risk sourcing of inputs on farm and in the processing operations. Sources include: SA Marketplace (www.soilassociation.org/organicmarketplace), Graig Producers (www.graigproducers.co.uk), OFG (www.organicfarmers.org.uk/classifieds). 1 A guide for organic businesses 21
  • 24. Process sub-sector Process sub-sector Sustainability footprint charts – PROCESS SUB-SECTOR Key Issues % (up to 50%) Opportunities % carbon Materials Excessive packaging Lightweight recyclable % cost risk % carbon Sourcing Overseas suppliers Local suppliers % cost risk % carbon Inbound Transport Load utilisation Improved planning % cost risk Process Packaging Resource usage not measured and targeted % carbon Measure and target energy, carbon and waste % cost risk Primary Transport Secondary Transport Transport to wholesaler or distribution centre not optimised Long distances and load utilisation not optimised % carbon Optimise routing and combine loads Optimise routing and combine loads % cost risk % carbon % cost risk Wholesale Retail Prices paid for organic too low. Seasonal supply variations Energy for cooking % carbon Direct sales to key customers. Exploit export markets All products microwavable % cost risk % carbon Consumer % cost risk % carbon End of Life Waste not recyclable Recyclable packaging % cost risk % of CARBON in chain KEY 22 A guide for organic businesses % of COST in chain Element of RISK in chain LOW MEDIUM HIGH
  • 25. Organic food processors in Wales include: egg packers, vegetable packers, baby food manufacturers, pie makers, bread makers and others. The sustainability footprint chart (left) shows where the carbon, sustainability risks, and costs are in the typical organic food processing supply chain. Understanding the Sustainability Footprint chart. The data for the chart is based on sustainability work by Weir TSCS with businesses in this sector and on research findings in the meat and dairy sectors. The results are representative only and meant to guide businesses on where to focus their efforts. Carbon – The graph shows the typical percentage of the total carbon emissions of the supply chain for each element of the chain Costs - The graph shows how costs are typically distributed across the supply chain, expressed as a percentage. Risk – The chart shows the typical level of risk of poor sustainability performance in each element of the chain The footprint of this sector can be reduced in three key areas: • Sustainability aspects Measure and manage sustainability aspects – water, energy, carbon footprint, waste. • Minimising waste Ensure you are aware of all waste in the whole supply chain by carrying out a robust evaluation and monitoring process. • Material sourcing was shown to have the biggest carbon footprint and the highest risk. This is because sustainability of the raw materials is out of sight, out of mind as it were. For organic producers choice of suppliers is often limited so work needs to be focused on helping suppliers improve their sustainability performance. Simply finding out more and asking questions is the first step to improving this area. Businesses can address this area by: What to do More information Identify sources of all key raw materials and packaging Ask suppliers for evidence of origin Use sustainability checklists with suppliers 10 questions about the sustainability of their supply Assess sourcing risks and eliminate non-sustainable sources Review responses and supplier knowledge to define actions Source 100% of materials locally where practical 1. Seek to eliminate materials sourced from long distances 2. Identify local suppliers Encourage key suppliers to improve and to provide ideas through best practice sharing sessions Show leadership by setting up quarterly conference calls Join buying groups to reduce purchasing costs of key materials Use buying groups and collaboration to optimise vehicle utilisation Look at both legs of the journey Use buying groups and collaboration to reduce nonreturnable transit packaging Use buying groups to reduce cost of indirect/non-core items and services Summary The organic food processing sector in Wales has significant opportunities to work with suppliers to improve sustainability performance for the benefit of all businesses in the supply chain. A guide for organic businesses 23
  • 26. Sustainability footprint charts – Wholesale retail sector Wholesale / retail sector WHOLSALE/RETAIL Key Issues % (up to 50%) Opportunities % carbon Materials Excessive packaging Lightweight, recyclable % cost risk Sourcing Overseas suppliers, high costs % carbon Local suppliers. Use buying groups % cost risk Inbound Transport Load utilisation and cost % carbon Coordinate transport for fewer deliveries % cost risk Wholesale Retail Resource usage not fully measured and targeted % carbon Measure and target energy, carbon and waste % cost risk Transport to Customer High fuel and maintenance costs % carbon Driver training % cost risk % carbon Consumer Non-return of boxes Incentivise return and re-use % cost risk % carbon End of Life Waste not recyclable Recyclable packaging % cost risk % of CARBON in chain KEY 24 A guide for organic businesses % of COST in chain Element of RISK in chain LOW MEDIUM HIGH
  • 27. Wales has a whole range of different organic retail and wholesale outlets, including farm shops, market stalls, retail shops, on-line stores and wholesalers. The sustainability footprint chart (left) shows where the carbon, sustainability risks, and costs are in the typical organic wholesale and retail business. Understanding the Sustainability Footprint chart. The data for the chart is based on sustainability work by Weir TSCS with businesses in this sector and on research findings in the meat and dairy sectors. The results are representative only and meant to guide businesses on where to focus their efforts Carbon – The graph shows the typical percentage of the total carbon emissions of the supply chain for each element of the chain Costs – The graph shows how costs are typically distributed across the supply chain, expressed as a percentage. Risk – The chart shows the typical level of risk of poor sustainability performance in each element of the chain From the chart, it is clear that sourcing provides the greatest opportunity for sustainability performance improvements, and waste reduction is an area where costs can also be reduced. The footprint of this sector can be reduced by looking at the following key areas: • Sustainability Action Plan: Translate interest in sustainability into a clear plan with objectives and targets • Measure and track performance: measuring key indicators such as electricity, fuel for transport and waste allows progress on this work to be tracked • • Set wider sustainability targets for suppliers: where choice is limited consider working with suppliers to improve sustainability in areas such as waste, labour, fuel and energy use • Switch to local suppliers: where possible switch to more local and sustainable suppliers or consider alternative products to achieve better sustainability performance • Buying groups: set up or join buying groups with non competing companies to reduce cost of supplies • Communication: develop messages to convey the Organic Plus1 benefits for the consumer particularly with regard to the appeal and benefits of e.g. more seasonal consumption. Publicise improvements in your sustainability performance and that of your suppliers • New market opportunities: identify opportunities to sell to the hospitality trade including hotels, restaurants and pubs Summary Wholesaling and retailing in Wales is performing well but there is always room for improvement particularly in the area of procurement and waste reduction. As with all sectors, publicising the work done in this area is key to enhancing the business reputation and bringing suppliers with you. Waste: set targets to reduce spoilage and write downs and for zero waste to landfill. Consider innovative ways to turn waste into profit e.g. setting up an onsite café or outside catering unit Sources include: SA Marketplace (www.soilassociation.org/organicmarketplace), Graig Producers (www.graigproducers.co.uk), OFG (www.organicfarmers.org.uk/classifieds). 1 A guide for organic businesses 25
  • 28. This toolkit will help support you to reduce your sustainability footprint Next steps: Need a plan? Use section three of this guide to produce your own Sustainability Action Plan. Need help measuring and monitoring? See section four of this guide on tools to measure and monitor sustainability. Need help bringing people with you? It is essential to communicate what you are doing, read more in section five of this guide on why communicating the benefits of your sustainability strategy is vital to its success. Need inspiration? Read about the key issues and opportunities for your sector in our sustainability footprint charts. These cover red meat, dairy, fresh produce, processing, wholesaling and retailing. For more free online resources, join the Organic Supply Chain Forum www.weir-tscs.com/organicforum/index.php This Sustainability Toolkit has been developed by Better Organic Business Links (BOBL). The BOBL project provides opportunities, information and training for businesses in the Welsh organic sector to help them deliver better profitability, sustainability and exemplary environmental performance. Find out more Write to: Organic Centre Wales, IBERS, Aberystwyth University, SY23 3EE Email: bobl-project@aber.ac.uk Visit us online at: www.organiccentrewales.org.uk Or call the BOBL Project c/o Organic Centre Wales: Tel: 01970 622248 A guide for organic businesses