We buy around 12% of the world’s black tea, 3% of tomatoes for processing, and 3% of the palm oil produced. Half of our raw materials come from farms and forests. The decisions that we make on who we source from, and how we work with them, can have profound implications on global resources and climate change. They also have a wider social impact, affecting the livelihoods of our farmers and their families, women and young people.
By sourcing sustainably, we can protect scarce resources. We can ensure deforestation, land use and social and community issues are managed responsibly. We can also ensure security of supply for our business and reduce costs. There is clearly a business case for doing this.
Our progress on sourcing has been strong. We are first concentrating on our top ten agricultural raw materials. These account for around two thirds of our volumes. They include palm oil, paper and board, soy, sugar, tea, fruit and vegetables, sunflower oil, rapeseed oil, dairy ingredients and cocoa. We are on track against our 2020 goal for all with the exception of fruit and soy beans. Continuing to transform the market, and moving more of our suppliers to sustainable agriculture practices in 2014, will enable us to purchase more of these ingredients sustainably.
All of our palm oil now comes from or supports sustainable production. We are now looking to source palm oil from certified, traceable sources and are making good progress. By sharing information about where products come from, we are also meeting emerging consumer needs. Lipton tea and Magnum ice cream’s Rainforest Alliance certification and the new Knorr Sustainability Partnership on-pack logo are leading the way.
In addition to our own sustainable sourcing programs already underway, in 2013 we made progress in driving wider transformational change across working towards eliminating deforestation and in wider agricultural systems such as tea. Working closely with others will be essential in achieving broader change.