Sustainable sourcing

Our food production makes Orkla one of the biggest purchasers of agricultural and fish raw materials in the Nordic region.

We have more than 25 000 direct suppliers globally and many sub-suppliers (for example farmers). We require our direct suppliers to accept our Supplier Code of Conduct which outlines our sustainability expectations. This means that the supplier commits to carry out their production in accordance with internationally recognised standards relating to human rights, working conditions, the environment, and anti-corruption. We follow up our suppliers through on-going dialogue, supplier evaluations and third-party audits.

Transparency is key. We communicate openly about how our products are manufactured and about their impact. Our companies are increasingly using certification and labelling systems that make it easier for consumers to compare products. Supplier information can be business sensitive, which is why we do not operate with open supplier lists. However, we report on risk issues and our work with important supply chains through Orkla’s annual and sustainability report, our reporting to Ethical Trade Norway and to CDP Forest.

Our sustainable sourcing targets towards 2025:

• Ensure respect for workers’ rights
• Achieve verified sustainable production of key raw materials
• Promote sustainable farming and fishing
• 100% recyclable packaging
• 75% packaging made of recycled materials
• 50% plastic packaging made of recycled or renewable materials

Sustainable raw materials

Our raw materials must be produced with the interests of people, the environment and animal welfare in mind. Our focus is on promoting human rights, high environmental standards and responsible business practices, but also on ensuring sustainable production of raw materials in the long term.

Population growth and increasingly noticeable climate changes such as droughts are putting pressure on our natural resources. At the same time, we see that production of raw materials such as seafood, palm oil and cocoa can give rise to significant social and environmental challenges. We make thorough assessments in connection with the selection of suppliers and work actively to ensure responsible business practices and solve environmental and social problems related to the production of our raw materials.

The choice of which raw materials we prioritize is based on an assessment of where we detect the highest risk, where we can have the greatest impact and what are the important raw materials for our products. The priority raw materials comprise a large proportion of the agricultural raw materials we buy in Orkla.

External international standards and certification systems are among the most effective methods we have to ensure that our prioritised raw materials are produced in accordance with recognized standards for sustainable production. You will find a variety of certification labels on many Orkla products, which show the standards and requirements we comply with. We believe that this information makes it easier for consumers to choose the products that contribute to sustainable development.

Sustainable packaging

Packaging has an important function in terms of protecting products, prolonging shelf life, and facilitating easy use. But the environmental challenges attributable to single-use plastic inspires us to find new packaging solutions.

The biggest challenge posed by packaging is that it is often not recycled or reused, leading to excessive use of resources. Poor waste management also results in unnecessary pollution. Sustainable packaging is important to us. This includes packaging that is easy to recycle, optimised in terms of size, storage and transport, and made from recycled or renewable materials.

Around 20 per cent of the packaging we use is plastic of various types. Plastic usually comes from non-renewable resources, and we are intent on reducing the use of virgin plastic. Our companies are making concentrated efforts to use recycled or renewable plastic. This is part of the work we are doing to advance the transition to circular value chains. We are cooperating with packaging suppliers and other partners to develop new packaging solutions that minimise the use of fossil raw materials and promote more recycling.

Other priority areas for our sustainability work

Care for people and society
Nutrition and wellness
Safe products
Environmental engagement

The Orkla Supplier Code of Conduct outlines our main sustainability expectations towards our suppliers and is included in our contracts. It covers human rights, labour standards, health and safety, environment and business ethics.

Policy: Supplier Code of Conduct

We are heavily engaged in promoting sustainable agriculture for the raw materials used in our products. We are supporting the international acknowledged definition put forward by the Sustainable Agricultural Platform (SAI Platform):

“The efficient production of safe, high quality agricultural products, in a way that protects and improves the natural environment, the social and economic conditions of farmers, their employees and local communities, and safeguard the health and welfare of all farmed species”

We have set targets and minimum requirements for all our prioritised raw materials to secure verified sustainable agriculture by 2025. For all cultivated crops we have set the target of securing production in accordance with minimum FSA silver level or equivalent. We have chosen the Farm Sustainability Assessment (FSA) because it is in line with global best practises, freely accessible to all farmers and can be used as a benchmarking tool for existing standards used in the industry. FSA is developed by SAI Platform and you can read more here

Orkla is working in different ways to promote sustainable agriculture and access to raw materials which meet our minimum requirements. We are engaged in implementation of FSA at farm level together with our suppliers, collaborate with certification schemes to benchmark their standard against the FSA and focus on continuous improvement. Orkla is also an active member in different industry platforms and projects, such as the Sustainable Agricultural Initiative Platform

There are great possibilities, but also challenges in securing sustainable agriculture. A major challenge is to ensure an adequate food supply for the growing population with the limited resources available while reducing greenhouse gas emissions and providing the necessary protection for nature and biodiversity. We are involved in several types of initiatives to ensure sustainable agriculture for the future.

Different approaches suited to local conditions are required. Farming practices that reduce carbon emissions and use the soil’s ability to hold carbon play a key part in achieving climate targets. We are engaged in different pilot projects aimed at promoting regenerative agriculture. The purpose of regenerative agricultural practices is to create more sustainable food systems with a focus on soil and nature renewal. Regenerative agriculture is a set of farming principles which are believed to play an important role in the future perspective of sustainable agriculture.

Orkla has a policy for animal welfare that describes our stance on animals’ welfare before, during, and after their productive life. We aim to purchase all animal-derived raw materials and products according to this policy by 2025.

The Animal Welfare Policy is based on the internationally recognised principle of the Five Animal Freedoms: freedom from hunger and thirst, freedom from discomfort, freedom from pain, injury or disease, freedom to express normal behaviour, and freedom from fear and (chronic) distress.

Our animal welfare guidelines apply to all animal raw materials across the geographical areas in which we operate, as well as specific standards for each type of raw material in the largest categories, including beef, pork, dairy products and eggs. We are in the process of drawing up separate standards for poultry (such as chickens and turkeys), but some companies have already introduced their own requirements.

Policy: Animal welfare – Orkla.com

Orkla is committed to preserving rainforests and other natural forests with high conservation value. Our goal is to ensure that the agricultural products and packaging we use are sustainably produced, without causing deforestation.

Our zero deforestation policy sets specific requirements for raw material production. This includes no clearance of rainforest, no cultivation of peatland, no use of fire as a method of clearing land and respect for the rights and interests of indigenous people and local communities. When assessing which forests should be preserved, both biodiversity and carbon binding must be taken into account.

We have engaged particularly actively in efforts to reduce the risk of deforestation in connection with production of palm oil, cocoa, soy, cardboard and paper. Orkla has signed the New York Declaration on Forests, and we report on the progress of our work through CDP Forest.

Policy: Orkla-zero-deforestation-policy.pdf

Cocoa is a key raw material in our chocolate products. We have therefore partnered with Rainforest Alliance to ensure that the cocoa we use is sustainably farmed.

The cocoa value chain is complex and comprises many links. Small cocoa farms in West Africa produce close to 70% of the world’s cocoa. The cocoa comes from cocoa farmers in Ghana, the Ivory Coast and other countries, before being shipped to Orkla factories via processing companies in Africa or Europe.

The cocoa sector in West Africa, particularly the Ivory Coast, faces serious challenges in the form of poverty, low productivity, human rights violations and environmental degradation. While global consumption of chocolate has increased over the years, cocoa production is declining due to small crops, lack of farming expertise, pests and disease. Serious issues such as child labour, deforestation and soil impoverishment are linked to underlying causes such as poverty, low prices, inadequate infrastructure and weak supervisory authorities.

We are committed to reducing the risk of child labour and to helping to improve the earning potential and living conditions of cocoa farmers. Certification is still fundamental to our efforts to ensure this.

The Rainforest Alliance certification (formerly UTZ) has adopted a coherent approach to the cocoa sector. Certified farmers and cooperatives to which they belong must comply with strict requirements on human rights, working conditions, and environment, including the principle of zero deforestation. The certification work helps to improve agricultural practices and ensure better conditions for cocoa farmers. Rainforest Alliance also has good processes for monitoring and following up on compliance with requirements. More than 80 per cent of the cocoa we use is certified.

We want to establish better traceability procedures, as they will help to ensure deforestation-free value chains and fair conditions for farmers. By tracing cocoa back to a cooperative, we can gain a better overall picture of the physical cocoa value chain.

Palm oil is linked to a risk of deforestation, which leads to greenhouse gas emissions and destruction of nature’s ecosystems with subsequent loss of biodiversity. There is also a risk of workers’ rights violations in the palm oil value chain. Furthermore, palm oil can have negative consequences for health due to its high content of saturated fat. However, palm oil is also one of the most area efficient vegetable oils so less land is needed to grow to get the same amount of oil.

We have a two-pronged approach where we either replace palm oil with alternative raw materials or work to ensure that the palm oil we use is RSPO-certified.

Policy: Orkla-Sustainable-Palm-Oil-Policy-1.pdf (webcore.no)

Sustainable sourcing

Our food production makes Orkla one of the biggest purchasers of agricultural and fish raw materials in the Nordic region.

Read more