Summary of AgWater Steward Commitments
Ceres-WWF AgWater Challenge
The Hain Celestial Group, Hormel Foods, PepsiCo and WhiteWave Foods
With $2.7B in annual net revenue, The Hain Celestial Group, based in Lake Success, New York, is a leading organic and natural products company with operations in North America, Europe and India. Hain Celestial brands include Celestial Seasonings®, Terra®, Spectrum®, Imagine® and SoyDream®. For more information, visit www.hain.com
- Complete a water risk assessment across its entire supply chain by the end of 2017.
- Use the risk assessment to implement a watershed-by-watershed strategy to reduce water use and pollution risks linked to agricultural production.
- Assess freshwater impacts, among other environmental and social impacts, of top 10 commodities by 2018.
- By 2025, source 100% certified sustainable fruits, vegetables and oils.
- Report annually on progress against sourcing goals.
- Provide educational support to farmers in its animal feed supply chain to reduce water and climate impacts, and to implement responsible nutrient (fertilizer) management practices.
- Incentivize ingredient suppliers to plant cover crops to restore soil health and reduce water quality impacts.
With over $9.3B in annual net revenue, Hormel Foods, based in Austin, Minnesota, is a multi-national manufacturer and marketer of consumer-branded food and meat products, specializing in processing and marketing pork and turkey. For more information, visit http://www.hormelfoods.com and http://2015csr.hormelfoods.com/
- Develop in the next three months a sustainable agriculture policy that will require all direct suppliers, contract animal growers and feed grain growers to meet best environmental practices for reducing water pollution risks, including with respect to the storage, transport and application of animal manure.
- Complete by February 2017, with a reputable third-party: 1) a high-level water risk assessment for its largest direct suppliers, contract growers and for key agricultural inputs produced in high water risk regions and 2) an in-depth assessment of water quantity and quality challenges in priority sourcing areas.
- Support and engage with suppliers and growers, including contract growers and animal feed growers, in high water risk regions by gathering water-related data and establishing time bound goals aimed at improving water quality.
With over $63B in annual net revenue, PepsiCo, headquartered in Purchase, New York, is one of the world’s leading food and beverage companies. Through operations, authorized bottlers, contract manufacturers and other third parties, it produces, markets, distributes and sells a wide variety of brands including Frito-Lay, Gatorade, Pepsi-Cola, Quaker and Tropicana. For more information, visit: http://www.pepsico.com/
- Improve the water-use efficiency of its direct agricultural supply chain (citrus, corn, oats and potatoes) by 15% in high-water-risk sourcing areas, based on a 2015 baseline.
- Achieve water-use efficiency goals through education and training, including on the design and operation of drip irrigation systems, methods of irrigation scheduling, and optimal application of fertilizer.
- Sustainably source direct agricultural raw materials by 2020; and by 2025 seek to sustainably source non-direct major agricultural raw material ingredients.
- Evaluate effectiveness of sustainable sourcing goals through PepsiCo’s Sustainable Farming Initiative (SFI). SFI establishes environmentally responsible practices for growers including specific criteria on water quantity, quality and soil health, in addition to supporting farmer yields, livelihoods and advancing respect for workers’ human rights.
- Identify opportunities for collaborative action and advocacy in high water risk priority watersheds.
With over $3.9B in annual net revenue, WhiteWave Foods, based in Denver, Colorado, produces plant-based foods and beverages, premium dairy products and organic salads, fruits and vegetables. Its brands include Silk®, So Delicious®, Alpro®, Horizon®, Wallaby Organic®, Earthbound Farm® and International Delight®. For more information, visit: http://www.whitewave.com/
- Develop a robust, time-bound roadmap for agricultural water stewardship by 2018 that addresses shared water challenges of dairy, soy, almond and produce in areas of greatest water risk, including California.
- Support and scale projects that restore freshwater systems in areas material to supply chains, such as on-farm groundwater recharge projects for almond and field greens farmers in California and investments in cutting edge technologies that improve water efficiency and nutrient application in dairy production.
- Engage in policy advocacy to strengthen water management in high risk priority sourcing regions by becoming:
- A signatory of Ceres’ Connect the Drops Initiative, which seeks to elevate the voice of businesses in favor of resilient water solutions to safeguard California’s precious surface and groundwater supplies.
- A Corporate Advisory Council member of the Business for Water Stewardship network—a collection of 1,100 businesses—which provides guidance on engagement efforts and policy recommendations that support a healthy and thriving Colorado River system.
Diageo, General Mills and Kellogg Company
With over 10.8B £ ($13.2B) in annual net revenue, Diageo, based in London, England, is a global leader in beverage alcohol. Its brands include Johnnie Walker, Crown Royal, Smirnoff, Captain Morgan, Baileys, Don Julio, Tanqueray and Guinness, among others. Its products are sold in more than 180 countries around the world. For more information: http://www.diageo.com/en-us/CSR/pages/default.aspx
- Launched in 2015, the Diageo Water Blueprint defines the company’s strategic approach to water stewardship. The integrated approach is based on four core areas: raw materials sourcing, operations, the communities where it operates, and local and global advocacy for best practice in water stewardship.
- Committed, by 2020, to establish partnerships with farmers to develop sustainable agricultural supplies of key six raw materials, reaching 90% of raw materials purchased: Barley, Maize, Agave, Aniseed, Sugar/Molasses, and Sorghum/Cassava.
- Committed, by 2020, to equip its suppliers with tools to protect water resources in the most water stressed locations in seven African countries.
- Committed, by 2020, to ensure sustainable water stewardship on 100% of owned agricultural land.
- Created a sustainable agriculture policy encompassing key water indicators: water efficiency, improving efficient water management in water stressed locations, assisting producers with better management of inputs like fertilizer and pesticides to protect biodiversity, and enhancing soil quality.
With over $18.7B in annual net revenue, General Mills, headquartered in Minneapolis, Minnesota, is a leading global food company. Its brands include Cheerios, Annie’s, Yoplait, Nature Valley, Fiber One, Haagen-Dazs, Betty Crocker, Pillsbury, Old El Paso, and more. For more information: http://www.generalmills.com/en/Responsibility/Overview
- Committed to champion development of water stewardship plans by 2025 for the company’s most material and at-risk watersheds in its global value chain. Currently partnering with local stakeholders on sustainable sourcing in several high water risk regions through collective action and policy advocacy. This includes field level work in the Los Angeles and San Joaquin watersheds (through the California Water Action Collaborative) and in the Snake River Basin in Idaho, as well as policy advocacy as a signatory of Ceres’ Connect the Drops campaign.
- Worked with WWF and the Rainforest Alliance to complete a comprehensive risk assessment, including water use and water quality risks, of all raw materials bought worldwide; identified 10 priority raw materials.
- Committed to sustainably source its top 10 ingredients (palm oil, fiber packaging, wheat, oats, sugar beets, vanilla, cocoa, dairy, corn and sugarcane) representing more than 50% of raw material purchases, by 2020.
- Working with Field to Market, Canadian Fieldprint, the Dairy Sustainability Framework to sustainably source wheat, oats, sugar beets, dairy, and corn.
- With The Nature Conservancy (TNC) completed a global water risk assessment of all its production facilities and growing regions, identifying 8 high-risk watersheds.
- Committed to improving the sustainability of water use throughout its supply chain.
With 2015 sales of $13.5 billion and more than 1,600 foods, Kellogg is the world's leading cereal company; second largest producer of cookies, crackers and savory snacks; and a leading North American frozen foods company. The Kellogg Company brands include Kellogg's®, Keebler®, Special K®, Pringles®, Kellogg's Corn Flakes®, Rice Krispies®, Eggo®, among others –To learn more, visit www.kelloggcompany.com or follow on Twitter @KelloggCompany, YouTube and on Social K.
- Committed to responsibly source by 2020 its global 10 priority ingredients (including rice, wheat, corn and sugar beets), by measuring continuous improvement for row crops through metrics focused on water, fertilizer use and other factors aligned with industry standards and measurement tools, such as Field to Market.
- Supporting 17,000 agricultural suppliers, millers and farmers across 22 different countries to optimize water use and enhance watershed quality, such as by providing financial and agronomic assistance. (Examples include the Louisiana Master Grower Program, Thai rice project, and Bangladeshi potato suppliers.)
- Committed to improve the livelihoods of half a million farmers by advancing climate and water smart agriculture practices that help them produce more using fewer natural resources.
- Setting suppliers’ expectations to support CSR commitments (see supplier code and resource guide); responsible sourcing is included in the Kellogg supplier scorecard and is also integrated into sourcing events.
- Setting expectations with procurement category managers by embedding responsible sourcing commitments into annual incentive plans and measuring performance against set goals, which are tied to annual compensation.
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