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ARVID NORDQUIST Review of the year Operations ... ... 2020/02/18  · ARVID NORDQUIST HAB OPERATIONS & SUSTAINABILITY 2019 Over the next 30 years, the world’s population is forecast

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  • ARV ID NORDQUIST HAB OPERATIONS & SUSTAINABILITY 2019

    Arvid Nordquist HAB is a Swedish family-owned company that has focused on great taste experiences and high-quality products since its beginning in1884.

    Review of the year Operations & Sustainability

    ARVID NORDQUIST

  • ARV ID NORDQUIST HAB OPERATIONS & SUSTAINABILITY 2019

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    The global food challenge

    This is Arvid Nordquist

    Some of our brands

    Review of the year

    Developments in the Nordics

    The Nordic market for food, drinks and household products

    Market trends

    Our stakeholders

    Sustainability work within the company

    Outcomes sustainability targets

    Certification guide

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    Over the next 30 years, the world’s population is forecast to reach almost 10 billion people, all of whom should have access to the food they need. Therefore food production must increase even as the world’s food system is further challenged by environmental issues and climate change.

    The difference between how much is produced today and how much will have to be produced for a growing population is referred to as the ‘Food Gap’. To close this gap, production needs to increase by 56%, in terms of calories, by 2050. At the same time, consumption of meat and dairy products is also expected to rise, from the already high levels of today, which will take up much of the food system.1 The production of animal-based foods is inefficient compared with plant based foods. It takes six times the resources to produce equivalent amounts of protein via meat than via plants.2

    Food production can expand either by increasing harvests, fish catches and consumption of wild-growing foods, or by converting more land into fields and pasture. It is uncertain whether, and by

    how much, harvests can be increased on existing land. To close the gap, the yield would have to be greater than during the ‘green revolution’ of the 1960s, when large amounts of fossil energy, pesticides and mineral fertilisers were used to maximise the harvests. That is not a route that many want to take again. In addition, current yields are already under threat from a chang- ing climate, the loss of insects that help with pollination and other ecosystem services, and deteriorating soil quality.3

    Another approach is to set more land aside for grazing and farming. In this scenario, over three billion hectares of land would need to be converted into agricultural land – practically all remaining forests and savannas. This is sometimes referred to as the ‘Land Gap’, the difference between the land we use today and the land we need to use to feed a growing population, all things being equal.4 Humans already use around 70% of the planet’s ice-free surface, 50% of which is allocated for food production.5 The conversion of even more land from natural ecosys- tems to agricultural land would drive biodiversity losses, which are largely the result of changes in land use. Other key services and resources would also

    disappear. The soil in forests and other natural ecosystems serves as a carbon sink, storing carbon from emissions of carbon dioxide. If the vegetation is removed, the carbon dioxide will be released again, accelerating climate change. Natural ecosystems provide a host of other ecological services as well, such as pollination, soil produc- tion and flood protection. In a time of ongoing climate change, these services are even more important as a buffer against the effects of the changes. This is called the ‘GHG mitigation gap’ and describes the difference between the emissions that such extensive land conversion would create and the emis- sion levels that we need to get down to in order to achieve the targets in the Paris Agreement.6 The land conversion described above would generate 15 gigatonnes CO2e, compared with the maximum of 4 gigatonnes that agriculture would produce under the terms of the climate goal.

    1 Creating a sustainable food future. World Resources Institute. 2018 2 Food in a green light. European Environment Agency. 2017 3 Creating a sustainable food future. World Resources Institute. 2018 4 Creating a sustainable food future. World Resources Institute. 2018 5 Climate change and Land. IPCC. 2019 6 Creating a sustainable food future. World Resources Institute. 2018

    The global food challenge

    ”It takes six times the resources to produce equivalent amounts of protein via meat than via plants.“

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  • ARV ID NORDQUIST HAB OPERATIONS & SUSTAINABILITY 2019

    Ways forward It is probably unrealistic to focus solely on maximising harvests to guarantee food for everyone. However, it is part of the solution, with new methods and crops that are adapted to a chang- ing climate enabling an increase in harvests. There is research showing that more sustainable farming methods can produce higher yields over the long term, since surrounding ecosystems are preserved and able to support the agri- culture. Gentler methods also maintain soil quality, which helps to improve the harvests. It is, however, crucial that a focus on increasing yields is combined with protection of natural ecosystems such as forests, borderlands and wet- lands, so protecting biodiversity and the ecological services that the ecosystems provide.7

    Major changes are thus required from the producers and farmers in the first link of the chain. However, other parts of the food chain also need to change. Around a third of all the food pro- duced ends up being thrown away. By reducing waste, we can also reduce the associated greenhouse gas emissions, land use, water consumption and so on.

    One of the most significant parts of any solution is to change consumer demand and preferences. A switch to a mainly plant based diet would have huge environmental benefits. Today, around 70% of all agricultural land is used for livestock grazing and feed production, and as much as a quarter of the world’s greenhouse gas emissions can be traced back to the production of animal-based foods.8 Giving a large proportion of these areas over to the production of plant based foods for human consumption would enable us to dramatically reduce the amount of agricultural land required. The same applies to water and energy use and greenhouse gas emissions, all of which would fall sharply as a result of switching to a plant based diet.9 Such a diet also has health benefits. There is a clear correlation between health and the environment, with the foods that have a high environmental impact also having more negative health effects, and vice versa.10

    A key factor in this work is innovation. There is a clear need to identify the

    methods that give a high yield with minimal environmental impact, to come up with ways to tackle food waste and to change the behaviour of both pro- ducers and consumers, and to create new plant based foods that can provide an alternative to meat, dairy and eggs. Changing the food preferences of the world’s population is likely to help solve multiple issues, in terms of food, health and the environmental impact of food production.11

    Arvid Nordquist sells products deriving from agriculture and is thus affected by these challenges. With some of our products more vulnerable than others, we see particular challenges relating to coffee, wine and grapes, but also more general challenges for our range. It is therefore vital that we work to reduce our overall environmental footprint and push for the sustainable development of our product portfolio.

    7 Creating a sustainable food future. World Resources Institute. 2018 8 Crop production and natural resource use. FAO. http://www.fao.org/3/Y4252E/y4252e06.htm 9 Clark, M.A. et al. Multiple health and environmental impacts of foods. PNAS. 2019 10 Clark, M.A. et al. Multiple health and environmental impacts of foods. PNAS. 2019 11 Clark, M.A. et al. Multiple health and environmental impacts of foods. PNAS. 2019

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    Photo: Raphael Cameron

  • ARV ID NORDQUIST HAB OPERATIONS & SUSTAINABILITY 2019

    Product areas

    This is Arvid Nordquist Arvid Nordquist HAB is a family- owned Swedish company that was established in 1884. Our business is based on satisfying our customers’ demand for high-quality foods and household products.

    We strive to deliver the best possible customer service, great taste experienc- es and high-quality products – while

    at the same time doing our utmost to meet the needs of tomorrow, improve people’s lives and minimise our environ- mental and climate impact. Our range includes both brands that we own, develop and produce ourselves, such as our own coffee roasted in-house, and international brands that we represent in the Nordic region. We have around 40 different brands that we represent, with producers from different parts of

    the world. We take care of the whole value chain, including logistics from the producers’ warehouses to our ware- houses in the Nordic region and to customers, sales and marketing, product administration, customer and consumer service, and ordering and invoicing. Our customers always have a dedi- cated personal co