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

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


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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. 20182 Food in a green light. European Environment Agency. 20173 Creating a sustainable food future. World Resources Institute. 20184 Creating a sustainable food future. World Resources Institute. 20185 Climate change and Land. IPCC. 20196 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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Ways forwardIt 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. 20188 Crop production and natural resource use. FAO. http://www.fao.org/3/Y4252E/y4252e06.htm9 Clark, M.A. et al. Multiple health and environmental impacts of foods. PNAS. 201910 Clark, M.A. et al. Multiple health and environmental impacts of foods. PNAS. 201911 Clark, M.A. et al. Multiple health and environmental impacts of foods. PNAS. 2019

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Photo: Raphael Cameron


Product areas

This is Arvid NordquistArvid 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 contact.

Coffee

Food

Wine & Beer

Non food

A great taste combined with the strongest sustainability offering in the Nordics. Our focus on high-quality coffee and a firm commitment to people and the environment chimes well with consumer expectations in the Nordic market, which has helped us to increase our market share year on year.

We have strong brands and a uniquely broad portfolio of sustainability certified wines. We also work closely with the Nordic alcohol monopolies’ buyers and partners to improve the chances of a good listing. We have local organisations for market analysis, consumer research, PR and social media, not to mention product and design development.

Innovative brands with products that work and are also tailored to an eco-aware market. Dedicated sales team with extensive experience in promotional sales.

We work with international brands and have a full but carefully curated offering for all customers in the Nordic region. We take care of all the logistics and the launch process, and possess specialist knowledge in nutrition and menu development.


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Employees 286

Turnover 3 228 MSEK


Finance & reporting

Product administration

IT infrastructure & CRM- solutions

Daily distribution throughout the Nordic region

Customized logistics, warehouse

and distributionCRM-management

Category management

Brand management

Field sales & Merchandising

Order processing through phone, EDI and email

Sales- and channel management

Key account managment

Specialist competence and development

Nordic consumer- and customer contact

Our core valuesLong-term: We take a long-term ap-proach. Healthy business and relation-ships based on respect create lasting value. This is crucial to our success in winning the trust of our customers.

Committed: We are a knowledge company, with committed employees, that adds value for our customers, our brand owners and our consumers.

Responsible: We take responsibility for our value chain, from farm to consumer. We protect people and the environment through our Code of Conduct and our environmental and quality work.

Arvid Nordquist service

”Business is people – we rely on the commitment and talent of our employees to achieve our goals.”− Anders Nordquist, CEO Arvid nordquist HAB


Some of our brands

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have a


September 2019 marked 135 years since Arvid Nordquist – my grand-father – opened the doors to his own grocery store at Nybrogatan 10 in Stockholm.

We had every reason to celebrate this anniversary with our employees, part-ners and brand owners. My father used to say: “Business is people”, by which he meant that the company relies on the commitment and talent of its employees in order to make good progress. Top quality goods and service have always been a cornerstone of our business, and my colleagues and I continue to operate in that same spirit. We generate trade by building relations and taking respon-sibility along our value chain – Business is indeed people!

The past year In recent years, we have taken on responsibility for several new brands in the Nordic market and recruited many new and committed employees. 2019 has seen us firmly establish the new or-ganisation. Sales have continued on a positive trajectory, with net sales growth of eight per cent compared with the previous year. Our coffee, for example, has captured additional market share

in 2019 and has seen strong volume growth in Finland. We have also initi-ated a broader focus on exports of our coffee.

Over the year we have added two new brands to our Swedish food portfolio: Mentos, which is owned by Perfetti Van Melle, and Tonys Chocolonely, which has the mission of producing choco-late that is guaranteed to be grown without slave labour, forced labour or child labour. 2019 is also our first full calendar year with SC Johnson’s product portfolio, with the Duck brand in particular performing excellently over the year, up 37 per cent in total. We have implemented significant changes in the range from many of our major brands, including A+, Pringles, Glade and Duck, while also continuing to drive growth for the longer-standing brands in our portfolio, such as Del Monte. Notable performers include Pringles, with its strong sales, and our portfolio of seasonings – Kikkoman Tabasco, Grey Poupon and Colman’s – which has shown overall sales growth of ten per cent on the previous year. Kikkoman in particular has excelled with a rise of 16 per cent. Our Wine & Beer portfolio has continued its positive progress with growth of four per cent on the previous year. Our focus on offering

quality, certified products has proven to be exactly what the market wants. KWV is increasing in both value and volume in Sweden, bucking the overall trend for the South African segment. This year saw the launch of KWV Sauvignon Blanc BIB with a view to boosting South Africa’s reputation as a fantastic white wine nation. Our alcohol-free wine has also enjoyed a very positive year, demonstrating consumers’ increasing demand for high quality, 100 per cent alcohol-free products.

This year saw the launch of our sustain-ability database, which we developed as part of our business management system. We have mapped out the sustainability performance of all the items in Coffee, Tea, Food and Non Food, which together represent 68 per cent of our range. We have done this in collaboration with our brand owners to establish a benchmark, so that we can monitor the progress of our product portfolio in all the product areas. The database also makes it possible to quickly respond to customer questions about sustainability. In 2020 we will continue with an inventory of the items in our Wine & Beer product area, which accounts for the remaining 32 per cent of our range.

Review of the year

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South Africa KWV

DEVELOPMENT ARVID NORDQUIST’S NET SALESDEVELOPMENT KWV’S MARKET SHARES COMPARED TO THE SEGMENT SOUTH AFRICAN WINES

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ChallengesThe greatest challenge over the year has primarily related to the gross profit margin. We are an import company and the currency market has been difficult, putting pressure on our margins. We also expect it to remain challenging in the future and we therefore need to become more efficient and take firmer control of our costs. We have strong brands in our portfolio, but we operate in many categories that are defined as mature and so are subject to price pressure. Our portfolio mainly contains grocery prod-ucts, while fresh goods, often of a local nature, are being given greater shelf space in store. This will continue to be a challenge over the long term and re-quires us to regularly add new products that attract the modern Nordic consumer. With leading positions in many catego-ries, it is our role to develop the range and generate growth in value.

A challenge in the coffee industry is the ongoing low price of green coffee in the global market. The farmers are under pressure and finding it difficult to make the investments needed to improve quality, not to mention environmental and social conditions on the plantations. This will ultimately affect the supply of the coffee we want. We are also facing challenges in various parts of the wine and coffee world that are directly attributable to climate change. When it comes to wine, for example, we are seeing smaller vintages and rising prices as the growers tackle the difficulties that are affecting their harvests. The same is true for coffee, where the issue of water supply is increasingly raised as a prob-lem. Meeting these challenges requires

longer-term planning within the purchas-ing process, as well as active dialogue with our stakeholders.

Launch of greener coffee packagingOver the year, we have also taken a further step in our sustainability strategy for Arvid Nordquist coffee. During the summer, we began the switch from fos-sil-based to plant based and renewable material in our coffee packaging. Our new vacuum pack is now made using 70 per cent plant based laminate and the bag-style packaging comprises 80 per cent plant based material, without any loss in quality or protective properties. This initiative has cut our carbon emis-sions from packaging by 54 per cent. We have also worked to gather growing data from our coffee growers in order to obtain more accurate carbon emission calculations. The new calculations show that we have lower carbon emissions in that part of the value chain than previous figures had indicated. We have several similar ongoing projects with brands in our portfolio. Examples include Kellogg’s and Pringles, which by 2025 will have switched to packaging material that is either 100 per cent recy-clable, recycled material or compostable

material. HiPP, Sun Maid, A+ and SC Johnson also have similar projects on the go.

Additional climate initiativesIn our Wine & Beer business area, the Swedish Drinks Industry’s Climate Initi-ative presented its first report this year. The companies that have reported their carbon emissions in the shared tool represent over 75 per cent of Swedish alcohol monopoly Systembolaget’s sales. The target for 2030 is to cut emis-sions by 85 per cent in Scopes 1 and 2, or to achieve close to zero emissions within these scopes. In addition, the companies have committed to develop-ing a target for Scope 3 during 2020. The joint reporting tool allows the industry to monitor improvements over time. The initiative is highly likely to affect packaging choices and transport procurement, but also the activities of Systembolaget itself.

During the later part of the year, we began the major task of reporting our wine and beer producers’ sustainability performance in Systembolaget’s Sustainability Tool.

”Over the year, Arvid Nordquist has been a driving force behind the drinks industry’s joint climate initiative, and in helping to develop the initiative AN has very much been working in the spirit of Sustainable Development Goal 17”− Carl Johan Svaton, Director Wine & Beer

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DEVELOPMENT KWV’S MARKET SHARES COMPARED TO THE SEGMENT SOUTH AFRICAN WINES MARKET SHARES COFFEE

100% CO2compensated

100% sustainable certificated

Fossil-freeroastery

70% plant based

package

Source: AC Nielsen Bean coffee, DVH total volume share, KG, rolling 12 months, v.52


“We are proud to be the highest ranking coffee brand on the Sustainable Brand Index 2019, and to have once again obtained top marks among the 129 participating grocery trade suppliers on the question of responsibility for sustainable development and CSR, in the grocery trade attitude survey DVH Kedjeattityder.”

− Erica Bertilsson, Director Sustainability & Communications AN

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Developments in the NordicsIn 2017, the Swedish Parliament decided that Sweden would be one of the world’s first developed countries to go fossil free, with a target of becoming carbon neutral by 2045.

In 2017, the Swedish Parliament decided that Sweden would be one of the world’s first developed countries to go fossil free, with a target of becom-ing carbon neutral by 2045. In 2019, Finland followed suit and decided to become carbon neutral by 2035, and Norway took the same decision but for 2030. The Nordic countries are leading the world on climate policy and the issue is having an increasing influence on social development and politics. Industrial roadmaps have been developed to achieve the targets and tax policy is beginning to change. Our

industry will also be influenced by these two elements.

The food industry is responsible for much of the world’s carbon emissions, and this fact has received increasing attention in recent years. The Nordic governments see an opportunity to increase Nordic food exports, since the countries are well advanced in their transition to sustainable food produc-tion. The governments in the Nordic countries emphasise the importance of stimulating domestic food production both from a competitive and a food security perspective, and this ambition can also be seen in the strategies of the grocery trade.

Both Sweden and Norway have drawn up plans setting out how the grocery trade will develop into a fossil-free and sustainable industry with a focus on

public health. There is an expectation from politicians and authorities that unsustainable packaging will be phased out and circular business models will be introduced, along with fossil-free transport solutions and sustainable production methods. The EU’s directive on single-use plastics and expanded producer responsibility has led to higher charges, responsibilities and requirements concerning packaging.

All the Nordic countries have seen good growth over the past few years, but the economy appears to be slowing for 2020 due to global circumstances. The birth rate is falling in all Nordic countries, but is being offset by increased immigration. The overall population of the Nordic region is rising by 0.6 per cent, driven largely by population growth in Sweden.

1.3%

2.2%

2.4%

1.7%Norway

Population: 5 328 212GDP per capita: $66

Growth:

SwedenPopulation: 10 323 857

GDP per capita: $53Growth:

DenmarkPopulation: 5 827 463GDP per capita: $56

Growth:

FinlandPopulation: 5 527 405GDP per capita: $49

Growth:

FACTS NORDIC COUNTRIES

Source: Population; each country’s statistics institute. GDP and Growth; World Bank statistics.


The Nordic market for food, drinks and household products

GroceriesThe Nordic groceries market is domi-nated by a few, extremely powerful, na-tional supermarket chains, all of which have a focus on value, health, sustain-ability and development of their own brands. In Sweden and Finland there is a considerable focus on developing the range of fresh goods and home delivery of online purchases, recipe bags, collection and pre-prepared food in store. While the majority of grocery sales in Sweden and Finland take place in large store concepts (hypermarkets), the Norwegian and Danish markets have many more smaller supermarkets and soft discount stores. An oversupply of stores in Denmark has led to tough competition, price pressure and poor profitability on shop level. In all Nordic countries, stores outside the traditional chains have increased their share of the market, with ranges that fit many of our product categories. The greatest change during the year has been Coop Sweden’s purchase of supermarket chain Netto’s 163 Swedish stores. The seller was Denmark’s largest consumer goods company Salling Group, which runs Netto in Denmark, Germany and Poland.

Arvid Nordquist has a sales team work-ing in all grocery channels, including convenience stores and pharmacies,

where permitted, as well as managing key accounts. The Nordic alcohol mo-nopolies do not permit their stores to be approached by salespeople. Instead, Arvid Nordquist has an experienced central customer organisation that works closely with the monopolies to achieve success with calls to tender.

Out of HomeWhen Arvid Nordquist talks about Out of Home, we mean the channels Restaurant, Vending, Office Supply, Travel Retail and Industry (producers of ready meals). Our customers are resellers in these channels and we work closely with them to promote our busi-ness. In addition to our products, we offer various services such as training, inspirational meetings, seminars and taste settings for coffee machines.

The Nordic restaurant market has a similar structure to groceries, with a small number of dominant wholesalers. These are total concept companies that have developed from selling products to now also selling services. The restaurant market has experienced annual growth of five to six per cent since the begin-ning of the 2000s. The strongest growth has come in hotel restaurants, To Go concepts and coffee shops, while the staff catering market has shrunk. There has been a general increase in quality

across the restaurant industry in recent years. We have seen greater invest-ment in total experiences and concept development, often with an internation-al influence. Another trend is a focus on sustainability, with ethnic or organic restaurants, or an emphasis on local ingredients from small-scale produc-ers. One reason for the growth is the appearance of new solutions for home delivery of restaurant food. Consumers are allocating more and more of their food spend to food from restaurants.

We are increasing our sales across the whole of Out of Home, in all channels, thanks to our reputation for quality and sustainability, and our portfolio of well-known brands. These properties are key success factors in these channels.

”Younger generations now expect companies to carry out active and effective sustainability work”

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12 The list is compiled by Toronto-based media and investment advisory firm, Corporate Knights (CK).

Common featuresAll the actors in the Nordic grocery and food service market have a strong focus on sustainability. Interest has increased significantly in recent years as knowl-edge and awareness have grown. Younger generations now expect com-panies to carry out active and effective sustainability work, something that is likely to help put sustainability centre stage. The majority of the actors within the grocery trade are keen to take a significant stand on sustainability, which influence the expectations and require-ments that are placed on their suppliers. Kesko in Finland, for example, has been ranked the world’s most sustaina-ble trading sector company for the fifth year in a row on the Global 100 List published at the World Economic Forum in Davos.12

In food service, the emphasis largely remains on locally produced and organ-ic goods, while the grocery trade has broader and deeper knowledge, and so has higher expectations of its suppliers.

All the grocery retailers are developing their own brands with a sustainability profile. There is a growing demand for transparency among private label suppliers to ensure that they take social and environmental responsibility along the whole value chain.

The number of tools in which Arvid Nordquist reports its sustainability performance is rising. Arvid Nordquist is well prepared to meet customer expectations, but collaboration with our brand owners is crucial if we are to truly deliver on the growing demands.


Market trendsExpectation of good valueThe possibility to compare prices is not new, but now the option reaches across national borders. Global e-commerce actors have seized on the issue of value for money, which is putting pressure on national grocery retailers. The more alike products are, the easier it is for consumers to compare them. An increasingly common means of differen-tiation is to sell local products, private labels and various services. This trend is affecting us as a supplier of interna-tional brands in the Nordic region. It will be increasingly important to ensure the uniqueness and value of our brands and products as regards taste, quality and sustainability along the production chain, coupled with the communicative values built into the brand.

Health & sustainabilityFood sits at the centre of many of the global challenges faced by the world. The state of our planet and the health of its inhabitants have both imposed new requirements on what we consume. We are seeing an increased demand for transparency both in the value chain and regarding product content, customers are increasingly establishing systems for auditing supply chains and checking compliance with the criteria

in their Codes of Conduct. Innovative companies are seeing their opportu-nity to make inroads by offering the transparency and value that is being demanded, in terms of both planetary and human health, which often go hand in hand. The range of products on the shelves is changing, as the Nordic grocery suppliers seek to lead the way on health and sustainability. Tougher sustainability requirements also apply to packaging, with an emerging demand for packs to be better filled and for packaging to be effective, eco-friendly and recyclable. It is in times like these that new brands are born and those who fail to keep up with changing demands will fall out of favour.

DigitalisationE-commerce, automation and ever more detailed knowledge of consumer choic-es in store are features of a digitalised world that is now our everyday reality. Supermarket loyalty card systems gen-erate data that gives advanced insights into how consumers choose and switch brands. The brand loyalty of consumers is becoming crucial as the influence of digital solutions and online stores turns increasingly surgical. For many years, the priority has been on initiatives to drive sales in the market mix, but as the emphasis shifts to building consumer

loyalty, brand-building activities will be expected to deliver more.

Erasing industry boundariesShops are beginning to resemble restaurants and restaurants are becom-ing more like shops. Both sides want a greater share of the consumer’s food budget, and demand for pre-prepared meal solutions is on the rise. The super-markets see an opportunity to increase customer loyalty through the service they provide their customers in the form of ready-meals, recipe bags and home deliveries. All forms of fresh and pre-prepared food are occupying more space, at the cost of other categories in store. At the same time, the restaurant industry is facing competition from ready-meal solutions. The ‘restaurant section’ of the grocery trade is expected to reach 26 per cent by 2023.

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Arvid Nordquist keeps up with public needs and expec-tations through open dialogue with our stakeholders, participation in industry organisations and seminars, and media surveillance. Our key stakeholders are the groups that are affected most by or have the greatest influence on our business.

Customers

Safe products, High level of service, Products that add value, Control of the supply chain, Reduced CO2 emissions,

Healthy products with low environmental impact, Recyclable plastic packaging, Lower weight of glass packaging, Space- and

transport-efficient packaging, Sustainability certified products, Organic products, Local produce, Traceable and certified palm

oil, Code of conduct that matches BSCI’s code, Phasing out unnecessary chemicals.

Consumers

Good food at good prices, Convenience, Products that are good for health, Reduced use of plastics,

Recyclable packaging, Products with no pesticides or harmful chemicals, Products with good animal welfare,

Transparency – country of origin and content, Less sugar, Less salt, Fewer additives, ‘Free from’.

Employees Safe and healthy work environment, Responsible company, Opportunities

for development, Stimulating environment, Terms of employment

that are fair for the market.

Suppliers High level of service, Sales growth,

Professionalism, Local market knowledge, Competent administration.

Civil society Fair trade, Protection of biodiversity,

Climate-smart food, Reduced pollution, Greater transparency and information

from manufacturers.

Owners Long-term value, Responsible enterprise, Good workplace, Stable profitability, Growth.

Institutions Healthy and safe work environment, Safe food,

Clear content declarations, Reduced waste, Transition to fossil-free transport, Phasing out fossil-based and non-

recyclable packaging, Increased domestic food production, Healthy products, Transparency, Developing circular business models, Phasing out unnecessary chemicals.

Our stakeholders


Our ambition is to integrate sustain-ability work throughout the company and include it in relevant decisions and processes. This requires knowledge, management systems and sound financ-es within the company. Our range, our employees and our operations – in the form of the roastery and transport – are the backbone of our work to be a

“Over the year, our sustainability work has filtered through to everyone, as a natural and rewarding part of the everyday drive to achieve our business objectives” − Carl Johan Svaton, Director Wine & Beer

Agr

icul

ture & raw materials Prod

uc

tion & manufacturing

In

bound deliveries

CO2 emissionsQualityUse of chemicalsWater managementBiodiversityDeforestationWaste & pollutionWorking conditions/forced labour/child labourBribery & corruption

Food safetyProduct qualityTransparencyCO2 emissionsChemicalsWater useLabourWaste & pollutionEnergy consumptionProduction methodsControls in the supply chainEnvironmental accidentsWastageBribery & corruption

CO2 and NOX emissionsWorking conditionsTraffic safetyWastageControls in the supply chainBribery & corruption

Prerequisites for sustainabilityHealthy finances, Knowledge, Management systems

Responsible consumption &

production

responsible business. We keep a close eye on developments and constantly tighten our targets to reduce our impact on people and the environment, in our drive towards sustainable business and a healthy future. To help us in this endeavour, we have our business management system with its bank of sustainability data, our environmental

Environment

Food safetyClimate

Work environment & Working conditions

Bribery & corruption

Sustainability work within the company

Our value chain and its risksWe operate in a global market. We do business with actors from many of the world’s countries, depend on raw materials from even more, and offer our products in a Nordic market. We strive to minimise our commercial risks and we see it as our responsibility to try to minimise the negative effects of our business along our entire value chain.

management system ISO 14001, our food safety system, which is ISO 22 000 certified, and a number of policies relating to sustainability issues. We have a sustainability group containing representatives from every department in the company and every country, tasked with maintaining and developing our sustainability work.

Products Food safety, Sustainable range

with lower environmental footprint, Supplier controls

Operation Energy, Distribution,

Resource efficiency, WasteWorkplace

Health & safety, Satisfaction & collaboration, Trust & responsibility, Gender equality ISO 14001

CERTIFIED

ISO 22000CERTIFIED

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Packing Distribution

Sa

les & marketing

CO2 emissionsCircularitySpace- and transport-efficient packagingShrinkage & wastageWorking conditionsControls in the supply chain

CO2 and NOX emissionsWorking conditionsTraffic safetyWastageControls in the supply chain

TransparencyCO2 emissionsBribery & giftsHealth & working conditionsTraffic safetyMarketingEnvironment

Food safetyClimate

Work environment & Working conditions

Bribery & corruption



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Targets for Work environment & Working conditionsOur goal is for Arvid Nordquist to offer a sustainable and interesting work environment where we acknowledge everyone’s equal value and support the development and well-being of the individual. We celebrate our victories together, and humour and job satisfac-tion are key elements in our corporate culture. At Arvid Nordquist we also have a strong focus on health, fitness and movement. However, our respon-sibility is not restricted just to our own personnel; we have a responsibility to ensure good working conditions along the whole value chain. Coffee is grown in countries with weak employment legislation, while wine is produced in certain countries that are associated with a risk of poor working conditions and human rights violations. Raw ingredients for some of our food range are also produced in countries with

Attendance 98.1%

Team Efficiency Index From 2018 survey 72.8%

Commitment index Percentage of employers who feel committed to their workplace. From 2018 survey 80%

Ambassadors index Percentage of employees who act as ambassadors for Arvid Nordquist. From 2018 survey 30%

Male/female split 53/47

Male/female split in management 65/35

Third-party audited follow-up of ILO Core Conventions and human rights

Percentage of our net sales whose producers have third-party audited follow-up 61%

BSCI & SEDEX Percentage of our net sales signed up to BSCI Code of Conduct or Sedex*. 78.8%

challenges, and the same is true for our Non Food range.

Attendance levels within the company have fallen slightly over the year, but remain high compared with other companies in the industry. In 2019 we conducted initiatives to ensure a more even workload for roastery personnel, including changes to the organisation of shifts and the recruitment of more employees. This has enabled us to level out workload peaks and ensure better shift schedules. In addition, the work environment in the roastery has been improved with a focus on safety. During the year we had a serious incident, with a fire in a roasting machine. The fire did not cause any injuries or property damage, but the incident did prompt a review and development of our fire safety procedures.

Improvements have been made to the office in Norway, in terms of lighting and ergonomics.

Our employees have the opportunity to exercise during working hours, and the company promotes fitness and movement. During the year, we have introduced a breakfast lecture series with a focus on three areas: Health and well-being, Efficiency at work and Prod-uct expertise. The ultimate aim is for all personnel to feel healthy and perform better in their work. The company’s own sports club, Arvid Nordquist’s sports club (ANIK), further encourages movement and health, and has held several activities over the year. Interest in ANIK’s activities is growing, and the sports club is looking forward to 2020, when additional activities are set to get even more of our employees exercising.

98.1%Attendance

*Arvid Nordquist coffee is 100 per cent certified by either UTZ Certified, Rainforest Alliance or eller Fairtrade, i.e. equivalent to BSCI.


Based on net sales, 97 per cent of the brand owners in our product area for food brokers recognise Amfori/BSCI’s Code of Conduct. 74 per cent of our sales relate to brand owners who are also members of BSCI or Sedex, which means that regular audits are performed by independent inspectors to ensure compliance with the code and mini-mise the risk of unsustainable working practices and conditions. Of the others who are not members of BSCI or Sedex, the majority have their production based in Europe and also largely source their raw ingredi-ents from European producers that are not in risk countries.

Based on net sales, 25 per cent of the Non Food product area are members of Sedex and conduct regular controls of all production units in the world with a view to ensuring sustainable working practices. The other 75 per cent of sales in the product area have their production in Europe (Spain, France and Denmark).

When it comes to our Wine & Beer product area, 63 per cent is grown and produced in Europe, based on net sales. The other 37 per cent is grown and produced outside Europe, with South Africa and countries in South America posing a risk with regard to sustainable working practices. All our producers in the Wine & Beer product area recognise Amfori/BSCI’s Code of Conduct. Of our volume that is grown and produced in risk countries, 86% comes from South Africa, where all of our producer KWV’s growers are ethically accredited by WIETA, which bases its code in part on the UN’s Guiding Principles on Human Rights and the ILO Core Conventions. KWV has also been audited in line with BSCI’s Code of Conduct and achieved excellent results.

97%

25%

63%

of the brand owners recognisecode of conduct

of the Non Food are members of SEDEX

of Wine & Beer is grown and produced in Europe

We conduct the following work to meet the risk of unsustainable working conditions:

Within our Coffee product area, we only use beans that are certified by Fairtrade, UTZ Certified and/or Rainfor-est Alliance. These standards contain requirements that cover areas including pay levels, working hours, housing,

safety, prohibition of child labour, anti-discrimination and the right to or-ganise. The standards set requirements for annual audits by external auditing companies. Certification and controls are a means for us to minimise the risk of unsustainable working methods.

In our other product areas, we strive for follow-up and controls in line with

Amfori/BCSI, which refer to interna-tional conventions such as the Universal Declaration of Human Rights, the UN’s Guiding Principles on Business and Human Rights, the ILO Core Conven-tions and OECD’s guidelines for global trade.

25

Portfolio targetsAlongside climate change, we have identified agriculture as the area where our greatest sustainability challenges lie. Soil degradation, loss of biodi-versity, eutrophication, deforestation and greenhouse gases emissions are negative effects of large-scale farming. Expanding our business to include the product area Non Food brought risks associated with chemical use.

We manage all the risks by aiming for our product portfolio to increasingly hold third-party verified sustainability certification or be able to demonstrate in some other way that farming and production meet similar standards. Our goal for 2020 is that at least 60 per cent of our sales will hold third-party verified sustainability certification or have sustainability work in place that

TARGET 2020 STATUS

100% will be sustainability certified 100%

50% organic by volume in OOH 42.4% +5.4%-shares on previous year

Clear market leader in organic segment at Swedish supermarkets 34.9% +almost 2%-shares on previous

year, clear market leader

21.5% Organic certified

33% of sales will be sustainability certified or have sustainability work in place that complies with our Code of Conduct

24.4% Certified farming system

56% All sustainable framing


51% Minus 2%-shares on previous year.


54.6% +0.6%-shares on previous year

TOTALT60 per cent of our sales will hold third-party verified sustainability certification or have sustainability work in place that complies with our Code of Conduct

67%

”67% of our sales comprise items that hold third-party verified sustainability certification or equivalent for farming and production. We have thus met our target for 2020!”

complies with our Code of Conduct. From our survey of the sustainability work being conducted by the produc-ers of the brands in our portfolio, we can report that in 2019 67 per cent of the brands in our portfolio met these requirements, based on net sales.

No 1 in organic segment

at Swedish supermarkets

Arvid Nordquist coffee

+

+

All our coffee is third-party verified by the sustainability standards Fairtrade, UTZ Certified and/or Rain-forest Alliance. A growing proportion is also organic, as certified by KRAV or EU organic. This means that all our coffee is grown in line with require-ments/rules covering soil management, water use, chemical management and biodiversity. We work actively to reduce greenhouse gas emissions from our coffee’s entire value chain and since 2011 have been offsetting the carbon emissions that still remain. This climate compensation takes place via tree plant-ing and/or forest conservation projects, primarily in Nicaragua but also in Peru and Ethiopia. In addition to creating benefits for the climate and the envi-ronment, the projects help to improve social and economic conditions in the local communities.

The year’s major advances have come in the Food area. We have conducted an extensive analysis of sustainability work for all the brands in our product area for food brokers. Our portfolio includes fully organic brands such as HiPP and Ekorrens Ekologiska, as well as organic items in the ranges of the brands Kikkoman, Sun Maid, Kellogg’s and Dream.

In addition, we have items developed in line with third-party certified sustainable farming systems, one example of which is Del Monte’s production in Kenya, which holds Sustainably Grown certifi-cation. Kellogg’s also conducts exten-sive sustainability work in farming, with requirements and controls concerning soil conservation work, ground covering plants, sustainable water management, reduced use of chemicals and ensuring that in the past 10 years no farming has taken place on the site of forest with a high conservation value.

Furthermore, Kellogg’s suppliers report to the Carbon Disclosure Project (CDP) and the company has adopted Science Based Targets. Many of our brand owners in the Food portfolio have also set targets to reduce greenhouse gas emissions. All the palm oil used is RSPO certified and the soya that Kikkoman uses from Brazil holds Proterra certifi-cation.

Many of our brand owners are develop-ing processes and/or systems to make sustainability information more accessi-ble, in order to meet growing stakehold-er demand for details about the farming methods used.

“We have been offsetting our remaining carbon emissions

since 2011”

27

In our Non Food product area, all the brands aim to reduce their carbon emissions. The bulk of our net sales are produced in plants with ISO 14001 certification, 51 per cent of net sales comprise items that carry the Nordic Swan Ecolabel, and 25 per cent of items sold are produced by manufac-turers that report to the CDP, Carbon Disclosure Project. The palm oil used in this product area is RSPO certified and none of our products contain nano-materials or formaldehyde.

The proportion of sustainability certified sales in the Wine & Beer product area is on a par with the previous year. We are seeing poorer performance among some of our organically produced wines, and we have stopped working with one of our wine producers, which brought growth to a halt this year. The Foncalieu cooperative, with which we have been working for over 10 years and which produces our rosé wine Puy Cherie, has long-standing and ambi-tious sustainability plans focused on the reduction of chemicals and water consumption in production. They have begun work on third-party certification for the whole of their extensive opera-tions, in line with the official French sus-tainability standard HVE – Haute Valeur Environmentalle. 30 per cent of their volumes are expected to be certified over the course of 2020.

When it comes to food safety, at least 93 per cent of our foods have management systems that meet internationally recognised food safety standards. A survey of certified food safety systems in our product portfolio will continue for the remainder of the portfolio in 2020.


Operational targets Within our own operations, last year we reached a milestone when our roastery and office building were run entirely on renewable energy sources for the first full year. At the start of the year, we there-fore added additional targets for our operations, concerning reduced energy use per kg roasted coffee produced and less waste sent for incineration. In addi-tion to this, we are working on the switch to either fossil-free transport or environ-mentally efficient transport. Our overall target is that at least 50 per cent of our business shall be fossil-free in 2020.

Energy use per kg coffee produced has fallen by a huge 17.3 per cent over the

year, because for many months we have had a roasting machine out of service due to a fire. By optimising the product mix and utilisation of machine capacity, we have been able not only to manage the situation, but also to cut energy use.

Over the year, we have achieved our target that least 50 per cent of our own distribution will be fossil-free, and we have done so with a year to spare. An impressive 70 per cent of our own trans-port flow now runs on renewable energy sources. There is a strong focus on this in the Nordic region, and Arvid Nordquist has also embraced the transport chal-lenge issued by Fossil Free Sweden.

We are running a little behind in terms of switching our fleet of company vehicles. This is primarily due to a lack of sustainable solutions for vehicles used by our sales team, i.e. vehicles with a long range and enough space to pack in all the necessary materials for work. Arvid Nordquist shares this challenge with many other actors and it is a topic of discussion across the Nordic region. The Bonus Malus system, the reduction obligation in Sweden and the electric vehicle subsidies in Norway all suggest a way forward.

“We have beaten our 2020 target by a wide margin, with an impressive 70 per cent of our own transport flow using no fossil fuels. The target was 50 per cent!”

TARGET STATUS

Fossil-free roastery 99.8% All purchased energy is renewable.

Cut energy use per kg roasted coffee produced by 10% (2025) -17.3%The fire incident forced us to maximum optimise the product mix and machine utilisation.

At least 50% of our own transport flow to customers will use no fossil fuels 70%

We have achieved our goal by far with a year to spare.

90% of our inbound deliveries will come by sea or rail (unit: tonne km) 89.6% We are very close

achieving our target.

100% fossil-free company vehicles 15%of AN’s vehicles aresome form of electric hybrid.

Expand waste sorting categories in the roastery to raise the proportion of material sent for recycling 1st

Packaging reels are now sent for corrugated board recycling.

99.8%fossil-freeroastery

“We require our logistics suppliers to use an ever-increasing proportion of biofuels, and we pay for it. This is part of our drive to cut the carbon footprint of our transport activities.”− Peter Dannqvist, Supply Chain Director AN

29

Report on use of resourcesWe have increased the amount of material sent for recycling by 1,7 tonnes. Packaging reels are now sent for corrugated board recycling instead of incineration. However, we have not managed to cut down on waste, with the amount sent for incineration remaining the same as in the previous year. The challenge over coming years is to increase the level of waste sorting.

In the area of packaging material, over the year we have im-proved our data gathering and are now able to better monitor the transition to the use of more circular materials and reduced extraction of new raw materials.

In terms of packaging material, the switch to plant based plas-tic laminate for our coffee is the biggest change of the year not to mention A+ switching to more concentrated products in smaller packaging, which will reduce the consumption of both plastic and corrugated board. Sun Maid has similarly swapped its 500 gram plastic packaging for a corrugated board alternative.

We have also improved our gathering of packaging data for other product areas in order to better track future progress. Many of our brand owners in the Food and Non Food product areas have promised to switch to recyclable and/or renewa-ble packaging over the next few years. These include Kellogg’s, Pringles, Sun Maid and SC Johnson.

WASTE QUANTITY

Glass 0.8 tonnes

Commercial waste, sorted 1.7 tonnes

Commercial waste for landfill 0.3 tonnes

Combustible, sorted 247 tonnes

Office paper 2 tonnes

Corrugated board 13.1 tonnes

Packaged food 12 tonnes

Iron scrap 8.5 tonnes

Hazardous waste- Waste oil- Fluorescent tubes- Office electronics

0.8 tonnes

Electronics- Office electronics- Domestic fridge/freezers

0.6 tonnes4 st

MATERIAL CONSUMPTION

Corrugated board 6035 tonnes

Glass, virgin 3531 tonnes

Glass, recycled 1085 tonnes

Plastic, petroleum based 1997 tonnes

Plastic, recycled 892 tonnes

Plastic, plant based 446 tonnes

Steel sheet 841 tonnes

Aluminium 46 tonnes

”The switch to plant based plastic laminate for our coffee is the biggest change of the year”

fossil-freeroastery


Carbon emissions reportWe conduct intensive climate calcula-tions along our whole value chain in line with the Greenhouse Gas Protocol. We divide our carbon emissions into Scope 1, 2 and 3. We also divide Scope 3 into two groups – one group where we have access to real data and can thus set targets for achieving reduc-tions, and another group where we only

“The climate is discussed in every forum in Norway and many launches, store upgrades and logistics projects are aimed at achieving a smaller footprint. This, the consolidation of chains and the factors that affect prices are the main focus of the Norwegian debate.”

− Jan Kleven, Country Manager AN AS

have access to general standard values, which does not allow for goal-driven work that is followed up by measuring carbon emission reductions. In a future in which all suppliers/producers meas-ure their carbon emissions along the value chain, it will be possible to moni-tor total emissions and their downward trend, but we are not at that point yet.

From 2011–2018, Arvid Nordquist planted approx. 800 000 trees, primarily in Nicaragua. The company also protected and/or regenerated 10 000 hectares of forest, mostly in Peru and Ethiopia.

This has happened over the yearBetter data gathering from coffee growers has enabled standard values to be replaced with actual figures, plant based packaging, more resource efficient irrigation and increased purchase of shade grown coffee have all together cut the CO2e emissions for Arvid Nordquist coffee by 8 per cent, from 4.5 kg CO2e to 4.13 CO2e per kg sold coffee. The work with reduced emissions continues.

The switch to fossil-free transport has cut CO2e emissions relating to distribution.

More resource-efficient packaging and data updates have reduced the CO2e emissions associated with packaging.

31

BREAKDOWN OF TOTAL EMISSIONS

CARBON EMISSIONS

Kg CO2e 2013-2019

FOSSIL/RENEWABLE ENERGYI

Distribution (KWH)

Agriculture PackingDistribution Office

Business travel

Production

In

bound deliveries

Packaging

Transport

Processing

Cultivation/ingredients

Other energy and coolants

Business travel

Distribution

Renewable energy Fossil energy

12% Distribution

27% Distribution

15% Electricity

38% Biogas

6%District heating

18% District cooling

2013 2014 2015 2016 201 7 2018 2019

M

300

250

200

150

100

50

0

56.4% 27.5% 6.5% 8.7% 0.6% 0.02% 0.37%


Broken down by Scope

Total

Scope 1

Scope 2

Scope 3A

Scope 3B

KG CO2 KPI CO2e

258 346 773 3.26 kg CO2e /kg

Roastery: 91 871 5.7 g CO2e/kg coffee 100% Biogas

Company vehicles: 400 214

124 g CO2e/1000 SEK

net sales16% Electric hybrids

Refrigerants: 0 No losses reported in 2019

Electricity: 32 188 0.2 g CO2e/kg coffee Bra miljöval ecolabelled:

The production of electricity, district heating and cooling complies with the criteria of the Swedish Society for Nature Conservation.

District heating/cooling: 2 142

0.07 g CO2e/1000 SEK

net sales

Business travel: 558 132172.9 g

CO2e/1000 SEK net sales

99% relates to air travel, of which 3% is intercontinen-tal, 59% continental, 37% domestic. Emissions include RFI factor.

Inbound deliveries: 16 829 912 171.1 g

CO2e/kg freight89.6% freight moved by sea and rail.

Packaging: 21 068 596 266 g/kg 83.6% of packaging by weight is recyclable.

Distribution: 1 427 532 18 g CO2e/kg

70% of transport kilometres use renewable fuel.

Processing: 71 281 306 Calculation based predomi-nantly on standard values.

Ingredients & cultivation: 146 654 980

We are pushing for sustain-ability certified farming and production.

“The production of electricity, district heating and cooling complies with the

criteria of the Swedish Society for Nature Conservation”

33


KRAV Fairtrade Rainforest Alliance UTZ 4C SCS Sustainably Grown Global GAP

Ekologiskt (EU-ekologiskt, USDA,

Bio Siegel, Debio)Soil Association Demeter Carbon Offset

through Plan Vivo

Sustainable Wine South Africa

growing

Sustainable Wine South Africa Wine

production

Sustainable Wine growing NZ

Sustainable Wine-growing NZ wine

production

High Environmental

Value

Sustainable Viticulture

ChampagneFair for Life Svanen* Bra Miljöval* MSC ASC Astma och Allergi

förbundet

Purpose of certification Organic certification Fairtrade labelling

Sustainable forestry and farming, biodi-

versity

Sustainable supply chains, transparency

and quality

Greater responsibility, baseline

Sustainable certifi-cation

Sustainability labelling Organic certification Organic certification Biodynamic Climate Sustainability labelling Sustainability

labellingSustainability




labelling Fairtrade labelling Environmental labelling

Environmental labelling

Sustainability labelling

Sustainability labelling Health labelling

Food yes yes yes yes no yes yes yes yes yes yes no no no no no no yes no no yes yes no

Coffee yes yes yes yes yes yes yes yes yes yes yes no no no no no no yes no no no no no

Wine yes yes no no no yes yes yes yes yes yes yes yes yes yes yes yes yes no no no no no

Detergents & Hygiene products

no no no no no no no no no no no no no no no no no no yes yes no no yes

Control system3d-party certifica-tion. Audit each

year, unannounced visits.

3d-party certification. Audit 2 times per

3 years. Unannounced visits.

3d-party certification. Audits every 3 years,

check every year in between.

Unannounced visits.

3d-party certification. Audit each year,

unannounced visits.

2nd-party verification every 3 years, self assessment each

year.


unannounced visits.

3d-party certifica-tion. Audit each


3d-party certification. Audit each year.

3d-party certification. Audit each year, unan-

nounced visits.

3d-party certification. Audit each year, some-

times unannounced visits.

Own verification each year. 3d-party certifi-cation of the projects

every 3 years.

Self-audit each year. Random 2nd-party

checks.


checks.


year.


year.

3d-party certification. Audit every 3 years.

3d-party certification. No requirements on

audit frequency.


3d-party certification.Random checks

and samples of the products.


Sample checks on the product.

3d-party certification. 3d-party certification. Nothing

Human rights 75 70 80 90 50 75 30 0 100 0 0 50 70 70 0 0 0 0 50 0 0 0 0

ILO Core Conventions 100 100 100 100 85 100 20 0 100 0 0 0 100 100 0 0 0 0 75 0 0 100 0

Gender equality 0 75 55 70 25 50 20 0 50 0 0 50 0 0 0 0 0 0 50 0 0 50 0

Health and safety 50 100 80 95 35 100 100 0 70 0 0 0 100 100 50 50 0 0 30 0 0 50 0

Wage (minimum or living wage) 50 100 50 75 20 75 20 0 100 0 0 100 100 50 50 0 0 50 0 0 0 50 0

Contributes to increased income No Yes partly partly No No No No No No No No No No No No No No No No No No No

Land/soil 100 60 80 80 20 75 100 100 100 100 0 100 50 100 100 50 50 30 NA NA NA NA NA

Biodiversity 100 60 100 15 15 15 75 100 100 100 100 100 0 50 50 80 30 50 60 60 100 60 0

Waste 100 53 75 35 30 30 100 100 100 100 0 90 90 40 40 0 30 30 0 0 NA 75 0

Water 100 50 70 95 30 30 100 100 100 100 0 100 90 90 90 75 30 50 30 30 NA 75 0

Energy 100 60 80 60 40 50 20 100 100 75 0 75 50 50 50 0 25 30 0 0 0 20 0

Climate 80 70 50 50 0 50 0 0 0 0 100 50 50 0 0 0 0 30 0 25 0 0 0

Fertilizer restrictions 100 60 60 60 25 60 60 100 100 100 0 60 NA 25 NA 25 60 25 NA NA NA NA NA

Chemical restrictions in cultivation 100 55 75 60 50 40 67 100 100 100 0 50 50 33 33 80 60 30 NA NA NA NA NA

Chemical restrictions in the product 90 NA NA NA NA 0 NA 0 0 100 NA NA 75 NA 33 0 0 0 60 90 0 0 30

Certification guide

35

KRAV Fairtrade Rainforest Alliance UTZ 4C SCS Sustainably Grown Global GAP

Ekologiskt (EU-ekologiskt, USDA,

Bio Siegel, Debio)Soil Association Demeter Carbon Offset

through Plan Vivo

Sustainable Wine South Africa

growing

Sustainable Wine South Africa Wine

production

Sustainable Wine growing NZ

Sustainable Wine-growing NZ wine

production

High Environmental

Value

Sustainable Viticulture

ChampagneFair for Life Svanen* Bra Miljöval* MSC ASC Astma och Allergi

förbundet

Purpose of certification Organic certification Fairtrade labelling

Sustainable forestry and farming, biodi-

versity

Sustainable supply chains, transparency

and quality

Greater responsibility, baseline

Sustainable certifi-cation

Sustainability labelling Organic certification Organic certification Biodynamic Climate Sustainability labelling Sustainability





labelling Fairtrade labelling Environmental labelling

Environmental labelling

Sustainability labelling

Sustainability labelling Health labelling

Food yes yes yes yes no yes yes yes yes yes yes no no no no no no yes no no yes yes no

Coffee yes yes yes yes yes yes yes yes yes yes yes no no no no no no yes no no no no no

Wine yes yes no no no yes yes yes yes yes yes yes yes yes yes yes yes yes no no no no no

Detergents & Hygiene products

no no no no no no no no no no no no no no no no no no yes yes no no yes

Control system3d-party certifica-tion. Audit each


3d-party certification. Audit 2 times per

3 years. Unannounced visits.

3d-party certification. Audits every 3 years,

check every year in between.

Unannounced visits.


unannounced visits.


year.


unannounced visits.

3d-party certifica-tion. Audit each



3d-party certification. Audit each year, unan-

nounced visits.

3d-party certification. Audit each year, some-

times unannounced visits.

Own verification each year. 3d-party certifi-cation of the projects

every 3 years.


checks.


checks.


year.


year.

3d-party certification. Audit every 3 years.

3d-party certification. No requirements on

audit frequency.


3d-party certification.Random checks

and samples of the products.


Sample checks on the product.

3d-party certification. 3d-party certification. Nothing

Human rights 75 70 80 90 50 75 30 0 100 0 0 50 70 70 0 0 0 0 50 0 0 0 0

ILO Core Conventions 100 100 100 100 85 100 20 0 100 0 0 0 100 100 0 0 0 0 75 0 0 100 0

Gender equality 0 75 55 70 25 50 20 0 50 0 0 50 0 0 0 0 0 0 50 0 0 50 0

Health and safety 50 100 80 95 35 100 100 0 70 0 0 0 100 100 50 50 0 0 30 0 0 50 0

Wage (minimum or living wage) 50 100 50 75 20 75 20 0 100 0 0 100 100 50 50 0 0 50 0 0 0 50 0

Contributes to increased income No Yes partly partly No No No No No No No No No No No No No No No No No No No

Land/soil 100 60 80 80 20 75 100 100 100 100 0 100 50 100 100 50 50 30 NA NA NA NA NA

Biodiversity 100 60 100 15 15 15 75 100 100 100 100 100 0 50 50 80 30 50 60 60 100 60 0

Waste 100 53 75 35 30 30 100 100 100 100 0 90 90 40 40 0 30 30 0 0 NA 75 0

Water 100 50 70 95 30 30 100 100 100 100 0 100 90 90 90 75 30 50 30 30 NA 75 0

Energy 100 60 80 60 40 50 20 100 100 75 0 75 50 50 50 0 25 30 0 0 0 20 0

Climate 80 70 50 50 0 50 0 0 0 0 100 50 50 0 0 0 0 30 0 25 0 0 0

Fertilizer restrictions 100 60 60 60 25 60 60 100 100 100 0 60 NA 25 NA 25 60 25 NA NA NA NA NA

Chemical restrictions in cultivation 100 55 75 60 50 40 67 100 100 100 0 50 50 33 33 80 60 30 NA NA NA NA NA

Chemical restrictions in the product 90 NA NA NA NA 0 NA 0 0 100 NA NA 75 NA 33 0 0 0 60 90 0 0 30

Requirements: Non

1-34 Low

35-60 Medium

61-99 High

100 Full requirements

Wages/Payments: No requirements

Requirements on minimum wages

Encourage living wage

Requirements on living wage

SVAN

ENMÄRKET

*There are several different product categories with different criteria and regulations for Bra miljöval and Svanen. The comparisons in this guide have been made on detergents. The certifications focus on the content of the products and very little or nothing on the production.

ARVID NORDQUIST HABBox 1285

S-171 25 Solna, Sweden

Phone: +46 (0)8-799 18 00E-mail: [email protected]

www.arvidnordquist.se

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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