KANSAS CITY, MO — Tune into the news at any given moment, and you’ll likely find a story related to climate change, whether it’s about massive fires, extreme drought or rare weather events. The narratives have become so commonplace that they barely grab people’s attention as they scroll from one headline to the next. Yet the latest research suggests issues pertaining to the environment are, in fact, very much top of mind.
In recent years, transparency and trust have topped the list of Innova Market Insights’ top consumer concerns, but in 2022, people have zeroed in on environmental issues.
“For the first time ever, more consumers surveyed globally for Innova’s Lifestyle & Attitude Survey say health of the planet is their top global concern, rather than health of the population,” said Lu Ann Williams, insights director at Innova.
It’s a significant shift that’s having a big impact on how companies plan for the future. In a recent Deloitte Global survey of 350 executives, 91% said their business felt the impact of climate change, and 84% said they are personally concerned about the impact of climate change on their business.
There is no global standard for sustainability practices, and commercial bakeries run the gamut regarding individual progress for improving energy efficiency, reducing greenhouse gas emissions, improving water efficiency and reducing waste. That said, there are several tools and resources that can help manufacturers determine where they are, where they need to go and how they need to get there.
Since this is a global issue that impacts every industry and individual on the planet, it’s helpful to take a step back and look at the big picture, starting with the United Nations’ Sustainable Development Goals (SDGs). Also known as The Global Goals, this set of 17 standards tackles the world’s most challenging issues and outline targets to achieve by 2030.
They include an actionable framework — agreed upon by world leaders — to address environmental concerns including affordable and clean energy, responsible consumption and production, and clean water. But they also address human rights and social issues like health and wellbeing, gender equality, and safe and inclusive communities.
The SDGs are the cornerstone of Mexico City-based Grupo Bimbo’s new sustainability goals, which build on more than 15 years of sustainability programs and projects. In the past few years, the company has been recognized by the Ethisphere Institute as one of the most ethical companies, as well as the first company in Mexico to receive clean energy certificates.
The strategy is based on three pillars: Baked for You, Baked for Nature and Baked for Life. Like the SDGs, Grupo Bimbo’s pillars take a broad approach to sustainability, one that focuses not only on the planet but also people and communities.
“The key ingredients are all linked to the purpose of the company, which is to nourish a better world,” said Alejandra Vázquez, Grupo Bimbo’s global sustainability VP. That includes promoting wellness through plant-based diets and nutritional diversity, becoming a net-zero carbon and zero-waste business, advancing regenerative agriculture, and improving the lives of its people and communities.
This broad approach falls in line with today’s shopper. According to a survey conducted by The Conference Board in collaboration with The Harris Poll, consumers are increasingly expanding their definition of sustainability to include issues like fairness and corporate citizenship.
“Our research with The Conference Board reinforces the unique sustainability inflection point we’re seeing with American consumers,” said Rob Jekielek, managing director at The Harris Poll. “An organization’s environmental footprint and impact still matter, but treatment of employees and the workforce is rapidly emerging as a new core pillar and proof point for showcasing an organization’s sustainability impact today.”
Vázquez said using benchmarking tools was crucial to helping define short-, medium- and long-term goals. For example, a target for achieving net-zero carbon emissions by 2050 was developed following Science Based Targets initiative’s (SBTi) framework. SBTi is a partnership between environmental non-profit CDP, the United Nations Global Compact, World Resources Institute (WRI) and the World Wide Fund for Nature (WWF).
Benchmarking also helped Grupo Bimbo assess what similar companies are doing and determine how to work together toward these larger global goals.
As a global company operating in 33 countries, it was also important for Grupo Bimbo to establish customized action plans based on environmental, social and governmental standards for each specific region.
“In each one of the organization’s regions, we define a specific roadmap for the overall goals that we need to reach as a company,” Vázquez said. “The speed and the way in which each will reach those goals will depend on the maturity [of sustainability standards in the country]. In some places, we are working toward renewable energy, and in other places, we are working toward electrical vehicles, but all of us are going to hit the goal by 2030.”
Like Grupo Bimbo, Los Angeles-based Aspire Bakeries is using the SDGs as a guidepost as well as broadening its approach to sustainability. Using inputs from internal stakeholders as well as brand, customer and employee expectations, the company recently outlined five areas of focus which include people, food, planet, sourcing and communities.
The American Bakers Association (ABA) also has a history of meeting members where they are and supporting companies in their sustainability efforts. But the organization is also starting to think more holistically about sustainability as the commercial baking sector becomes more willing to engage in targeted commitments.
“I think it’s time for us to revamp where we are and seek additional recommendations for bakers to embrace,” said Rasma Zvaners, VP of technical and regulatory services at ABA. “We run the full gamut of large global companies to small- to medium-size companies that are more regional. Three years ago, you had some that were out front and willing to make statements about their goals, but there may have been some hesitancy from some of the small- and medium-sized companies that simply lacked the resources.”
This story has been adapted from the October | Q4 2022 issue of Commercial Baking. Read the full story in the digital edition here.
