2020 Sustainability Report - Nomad Foods
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Contents About this Report INTRODUCTION BETTER OPERATIONS Message from our CEO 4 Our Emissions 30 This is Nomad Foods’ fourth 2020 Sustainability Highlights 5 Our Packaging 33 annual Sustainability Report, Nomad Foods at a Glance 6 CASE STUDY: Rethinking packaging 35 Materiality7 Employee Health, Safety and Wellbeing 36 covering the calendar year Managing Risks 8 Inclusion and Diversity 38 from January to December CASE STUDY: Stepping up Focus on Inclusion 39 BUSINESS FOR GOOD 2020. This report covers all Serving the World in a Pandemic 10 SOLID FOUNDATIONS trading subsidiaries of Nomad Eating for the Planet 11 Governance41 Foods unless specified Promoting Plant-Based Foods 13 Food Safety, Quality and Traceability 42 otherwise. BETTER SOURCING Corruption, Bribery and Anti-Competition 43 Responsible Marketing and Labelling 44 Our Oceans 15 The most recent previous report CASE STUDY: Helping Fisheries DATA to Certification 17 Data Tables 46 was published in May 2020. Our Fields 18 GRI Index 49 CASE STUDY: Preserving and Enhancing Soil Health 20 This report is influenced by the Our Approach to Specific Ingredients 21 Global Reporting Initiative Our Animal Welfare Standards 22 (GRI), and includes standards Our Supply Chain Ethics 23 defined by the GRI guidelines. BETTER NUTRITION It meets the requirements of Our Nutritious Food 25 the EU Directive on Non- CASE STUDY: Optimising our Pizza Portfolio 27 Our Approach to Additives 28 Financial Reporting. 2 | 2020 Sustainability Report Introduction | Business for good | Better sourcing | Better nutrition | Better operations | Solid foundations | Data
Introduction 3 | 2020 Sustainability Report Introduction | Business for good | Better sourcing | Better nutrition | Better operations | Solid foundations | Data
Message from our CEO Welcome to Nomad Foods’ • We significantly reduced carbon emissions per ton of finished goods by more than 20% and fourth Sustainability Report. absolute emissions by close to 11%, despite dramatically increased production volumes I am incredibly proud of what our teams have as a result of the Covid-19 pandemic achieved during 2020 which has been a chal- • 97% of the wild captured fish we source for our lenging year for all of us. Despite lockdowns, brands iglo, Birds Eye, Findus and La Cocinera is supply chain interruptions and the many other now Marine Stewardship Council (MSC) certified personal and business impacts of the pandem- • 77% of our total vegetable and potato volumes ic, our teams have continued to raise the bar are grown in line with the Sustainable Agricul- and shown amazing resilience and dedication ture Platform’s Farm Sustainability Assessment to serving our consumers with the products they Silver Level know and love. • At the same time as we have grown our busi- While there is still some uncertainty about the ness, we still have 90% of our sales coming from long term impact of Covid-19 on the workplace, Healthier Meal Choices it is clear that pressure for action on climate and • 83% of our packaging is now recyclable, up societal change has heightened. Retailers and from 73% last year consumers are increasingly interested in sustain- able brands, environmental, social, and gov- In 2020, we also became a signatory to 10x20x30, ernance (ESG) criteria are being used more for the global initiative to halve food loss and waste investment decisions and looking at the food by 2030, following the commitment we made sector specifically, it is now well known that the 2019 to set reduction targets for our emissions way food is consumed and produced is taking its in line with the Science Based Targets initiative toll on nature and the planet. As Europe’s lead- (SBTi) ; a commitment to reduce carbon emis- ing frozen foods company we are committed to sions in line with the Paris Agreement. playing our part in transforming the food system, In addition, you will see that there are areas to reduce pressure on resources, including land. where we need to do more, such as water use We also have a huge opportunity to help and inclusion and diversity, and we are under- consumers eat sustainably, given our portfolio taking detailed analysis to ensure the actions we is made up of high-quality, much-loved brands are taking deliver positive change. that millions of consumers choose every day and Stefan Descheemaeker, CEO centred around fish and vegetable products that are affordable and available everywhere. You will see in our report that we have made good progress across our six key targets, as we strive to bring our purpose of serving the world with better food to life. For example: 4 | 2020 Sustainability Report Introduction | Business for good | Better sourcing | Better nutrition | Better operations | Solid foundations | Data
2020 Sustainability Highlights Despite a turbulent year for our And we’ve continued to deliver action in line with our purpose to “serve the world with bet- suppliers, employees, ter food”, through promoting high standards in customers and consumers, we our supply chain and providing more consum- ers with convenient plant-based options through are proud of our sustainability our expanded Green Cuisine range. achievements at both a corporate and a local level. We have joined collaborative initiatives to mag- Became the first UK nify our impact in a number of areas, including fighting food waste, reducing ocean pollution farm management and putting disability inclusion on the business agenda. group and the first Corporate highlights Local highlights globally in frozen food, to be awarded €3.2M Namibian hake trawl and the FSA gold level* for our Bird’s Eye Donations made to longline vulnerable groups fishery Birds Eye signed up to champion Pea Harvest during the became Shared our pandemic disability inclusion MSC-certified sustainable growth strategy at our first Investor Day 4.59 Joined the fight against food waste Launched tonnes Joined the Equipment reused external Available in 12 movement to or recycled through * FSA refers to The Sustainable Agriculture Sustainability markets across combat ocean our sustainable IT Initiative Platform’s Farm Sustainability Advisory Board Europe pollution project Assessment. For more details, see page 19 Pea fields Yorkshire, UK. 5 | 2020 Sustainability Report Introduction | Business for good | Better sourcing | Better nutrition | Better operations | Solid foundations | Data
Nomad Foods at a Glance Nomad Foods is Europe’s Our Brand Portfolio our sites; all processes that take place within Fossilfritt Sverige pledge to achieve fossil-free our operating sites; communication with con- domestic transport by 2030 and the Peas Please leading frozen food company. sumers through advertising; product labelling; Initiative to support everyone in Britain to eat an Every day, over eight million and our Consumer Care Line. Direct suppliers extra portion of veg a day. are subject to our policies, standards and prod- As part of our work to share information and European households enjoy uct specifications. gather external insights from stakeholders and products from our leading Our influence is limited in areas such as the shareholders, we held our first investor day in primary production of raw materials; the pro- November 2020, at which members of our senior brands, which include Birds cessing of goods by third party suppliers; and leadership team presented on a range of topics Eye, Findus and iglo. the transportation of goods to and from retailers related to our business model, our growth strat- and other customers. We also have less direct egy and our long-term goal of driving share- We have a varied portfolio, which includes a influence over consumer transportation, prepa- holder value. range of fish and seafood, vegetables, potatoes, ration, and consumption of our products. Where plant-based foods, chicken and ready meal we have less direct control, we select suppliers Markets Where We Operate products. Our supply chain stretches from the who reflect our high standards and agree to fields, farms and oceans where the raw mate- strict specifications. rials for our products grow to tables across Eu- To extend our impact, we collaborate with rope. As of January 2021, we operate in 14 major other businesses, through industry associations European markets, with a factory footprint con- and with advocacy organisations such as the sisting of 14 sites across 9 European markets. This Marine Stewardship Council (MSC), the Sustain- is overseen by our employee team, led from our able Agriculture Initiative Platform (SAI Platform), headquarters in Bedfont, UK. AIM (the European Brand Association) and the UK Waste and Resources Action Programme Our Global Supply Chain (WRAP). In 2020, we also joined the Global Ghost Nomad Foods is a €2.5 billion business. Our sup- Gear Initiative to fight ocean pollution and the ply chain includes the purchase of raw material, 10x20x30 coalition to halve global food waste. components, semi-finished goods and ready- We also participate in networks and pacts at made products across a number of categories. a national level. For example, in 2020 Birds Eye Once purchased, materials are transported to in the UK joined the Valuable 500 network, ded- our manufacturing sites and warehouses be- icated to putting disability inclusion on the glob- fore being distributed to local markets and sold al business agenda. We are also signatories of through retailers and foodservice providers, even- the UK Plastics Pact to address plastic waste; the tually reaching the end consumer. There were no 4800+ major changes to our supply chain in 2020. The main areas under our direct influence are vegetables grown by our contracted farmers; • Nomad Foods’ offices the transportation of raw materials between employees • Nomad Foods’ factories 6 | 2020 Sustainability Report Introduction | Business for good | Better sourcing | Better nutrition | Better operations | Solid foundations | Data
Materiality In 2019, we conducted a Better sourcing | Better nutrition | Better operations Most material materiality assessment to More important Upholding human rights explore with internal and Upholding animal wellfare Sourcing fish & seafood responsibly external stakeholders whether any issues had increased or Reducing food waste Practising sustainable agriculture decreased in priority since Reducing energy & emissions previous years, and to identify Importance for stakeholders any emerging issues. Employee health & safety Our research included a quantitative survey with Using packaging responsibly Improving our nutritional profile 600 consumers across four European markets in which we operate, and interviews with internal Reducing water & waste and external stakeholders including NGOs, re- tailers and suppliers. We used the insights from this research, the results of our previous stake- holder engagement processes and our knowl- edge of the impacts of our business to develop Promoting diversity & inclusion Restricting use of GMOs Removing artificial additive our materiality chart. Sourcing palm oil responsibly In 2020, following internal discussions and as- Growing produce locally Promoting plant-based diets sessment, we updated the materiality chart to Sourcing soy responsibly reflect increasing public and retailer interest in promoting plant-based diets and the impact of soy. The chart is an illustrative representation of the results of our materiality assessment. The most material areas are in the darker boxes and are Good labour relations Employee training & education covered in more detail in the report. Providing for alternative diets Marketing responsibly There are also areas, such as upholding food safety and quality and ensuring zero tolerance of corruption, bribery and anti-competitive be- haviour, that are fundamental elements of how we do business. These are covered in the final Impact of Nomad Foods More important section of the report. 7 | 2020 Sustainability Report Introduction | Business for good | Better sourcing | Better nutrition | Better operations | Solid foundations | Data
Managing Risks Climate change, biodiversity Across the markets in which we operate, con- Spinach production Reken, Germany. sumer demand for healthy, responsibly pro- loss and widespread social duced products is rising rapidly. In addition, inequality pose major risks to media scrutiny, heightening governmental regu- lation and mounting pressure from NGOs bring fi- our planet, our society and our nancial and commercial risks for businesses who business. fail to act in accordance with high environmen- tal and ethical standards. Failure to mitigate the worst impacts of global The importance of these risks cannot be over- warming threatens lives and livelihoods across stated, and we place these at the heart of our the world. These impacts include unpredictable business practices. We work to manage and mit- or extreme weather conditions and scarcity of igate risks through a range of measures, which crucial resources such as water and raw mate- include implementing clear policies and proce- rials, as well as social unrest. dures across all material sustainability areas, as One of the central risks for Nomad Foods is the detailed throughout this report, and continually potential impact climate change could have on assessing risk through our Risk Heat Map. In 2020, our business, including through ocean heating, we also established a Business Risk Committee, ocean acidification and lower yields. responsible for assessing and monitoring the ma- Unsustainable food production contributes jor risks facing us as a business. further to these risks. Depletion of fish stocks due to overfishing and damage to soil health and biodiversity threaten supply chains across Proactive risk management the globe, including our own. In addition, rising obesity levels pose a global health challenge, means we can prepare and increasing the risk of non-communicable diseas- assess actions to take in a es and pressure on health services. structured and more informed manner. Annelie Selander, Group Sustainability Director 8 | 2020 Sustainability Report Introduction | Business for good | Better sourcing | Better nutrition | Better operations | Solid foundations | Data
Business for good 9 | 2020 Sustainability Report Introduction | Business for good | Better sourcing | Better nutrition | Better operations | Solid foundations | Data
Serving the World in a Pandemic During the Covid-19 pandemic, tomers during this period, as well as continuing Food donations during the pandemic, iglo Belgium. to offer existing consumers a nutritious and af- we acted fast to protect fordable way to feed their families. workers, support families and As well as delivering our purpose through our core corporate activity, during the initial weeks deliver on our purpose. of the pandemic and the pan-European lock- down, we also created a €3 million fund to pro- Millions of households serve and eat the food we vide monetary and food donations to local hu- make every day. In unprecedented and difficult manitarian and healthcare organisations. A times, we have an even greater responsibility to- large proportion of this was directed towards wards our consumers, suppliers, and employees. food banks helping those in greatest need dur- Our corporate purpose, “Serving the World ing turbulent times. with Better Food”, has directed every aspect Our teams have worked tirelessly during Cov- of our response to Covid-19. Since the start of id-19, despite facing ongoing challenges as the the pandemic, we have continued to provide impacts of the pandemic continue to be felt households across Europe with affordable, sus- in our supply chain. We are persevering in our tainable and nutritious products. stringent hygiene protocols to keep employees Keeping our employees safe was our first pri- safe, whilst taking dedicated steps to protect the ority – and central to our ability to continue serv- mental wellbeing of our people. These include ing customers and consumers. We acted early resilience training to help managers continue and decisively to implement new procedures supporting their teams, and wellbeing materi- and strict protocols at all of our sites to reduce als to help colleagues take care of themselves the risk of the virus spreading. As a result, all our and each other. factories have remained open and operational We know that we will continue to experience throughout this pandemic, and we have been difficulties as we transition back to a new nor- complimented by Public Health England on our mality, but our beloved products and unique social distancing measures and our proactive role in supporting everyday life make us well-po- approach to ensuring that our colleagues are sitioned to continue to “serve the world with bet- safe and well. For more details, see Employee ter food”. Health, Safety and Wellbeing. At the same time as implementing these strict new measures, we faced unprecedented de- mand for our products. Frozen food provides a convenient option for consumers living under lockdown restrictions, seeking to reduce their shopping frequency and choose products that stay fresh for longer. We’ve attracted new cus- 10 | 2020 Sustainability Report Introduction | Business for good | Better sourcing | Better nutrition | Better operations | Solid foundations | Data
Eating for the Planet Sustainable eating is critical to If we are to protect the world from the worst ef- fects of the climate crisis, ensure long-term food SDG2: Helping to achieve adequate nutrition the future of our planet and our security, and promote the widespread adoption for all within planetary limits is at the heart of business. of healthy, balanced diets, we need to transform our purpose: serving the world with better the way that food is produced and consumed food. Due to the nature of our portfolio, we at a global level. have a unique role to play in this area. For Our sustainability strategy, Eating for the Plan- more information on our activity and progress, et, sets out our role in supporting this change in see page 25. line with the UN Sustainable Development ER SOURCINGthe planet Goals (UN SDGs) and our corporate BETT eating for purpose. We have the portfolio SDG12: Given our position as Europe’s largest to empower consumers to frozen food company, we have the ability and Our oceans make the right choices and responsibility to champion more sustainable consumption and production patterns, par- Our fields it is our ambition to make ticularly in relation to packaging and food r eating for ingredients eating for eating for eating for the planet sustainable, healthy, waste. For more information on our activity Ou the planet the planet the planet tasty and accessi- and progress in this area, see page 33. ble for all. Founded in 2017, our strategy is built SDG14: As a major purchaser of fish and sea- d iti v e s food, this is an area where we can drive signif- eating eating on sourcing, nu- trition and oper- icant change, and together with our partners, s fo o d for the for the ations. It sets out make a meaningful contribution to global planet planet our ambitions in progress towards the goal. For more informa- in fl t o a d O ur O ur BETTE tion on our activity and progress in this area, O ur each area, sup- nce ION o a riti o u ported by time- see page 15. p l a pl bound commit- co p e mu ue ur c h TRIT RO et ments. These ut n n m o e r commitments are SDG15: Nomad Foods is a leading provider of O u pr NU PE ni p O designed to deliver vegetables and potatoes across Europe. This ty ra RA gives us the scale and influence to drive holis- O u sustained progress in ER O line with the UN SDGs, tic, sustainable agriculture practices and help TI NS BE TT in particular 2, 12, 14 and combat soil erosion and deforestation. For 15. Where relevant, we align more information on our activity and progress our commitments with specific in this area, see page 18. UN SDG targets to catalyse further change. 11 | 2020 Sustainability Report Introduction | Business for good | Better sourcing | Better nutrition | Better operations | Solid foundations | Data
Better Sourcing: We want to be the recognised Better Operations: We are committed to do bet- commitments. We have also gone above and leader in fish and vegetable sourcing. This means ter whilst minimising our environmental impact. beyond our commitments in certain areas, most sourcing our fish and seafood products with care We continually strive to improve our energy, wa- notably nutrition and operational emissions re- and respect for people and the environment, ter and waste management, reduce operation- duction. and ensuring that all our vegetables and pota- al greenhouse gas emissions and actively ad- As a recognition of our strong performance, we toes are grown according to third-party verified dress the impact of our packaging. ranked in the top quartile in the global Dow Jones sustainable agriculture principles. Sustainability Index (DJSI) 2020. We also achieved We are now in our fourth year of delivering Eat- our second consecutive perfect score of 100 for Better Nutrition: We help families eat a more bal- ing for the Planet. Thanks to targeted efforts to Health and Nutrition. The DJSI is a globally rec- anced diet. This includes improving the nutrition- embed sustainability across all our markets and ognised independent benchmark, conducting al profile of our portfolio, using our influence to functions, and despite supply chain and logisti- thorough analysis across a wide range of sustain- inspire positive choices and implementing strict cal challenges posed by the Covid-19 pandem- ability metrics. Overall, we scored 52 in 2020: our standards on additives and preservatives. ic, we continued to make progress across all our highest score yet. # 1. We will use 100% fish and seafood from sustainable fishing and responsible farming by the end of 2025 # 3. We will grow the healthier meal choices in our portfolio every year # 5. We will reduce our greenhouse gas (GHG) emissions year after year (2019: 614.5 kg CO2e) TOP QUARTILE 484.7* (2019: 95%) (2019: 90%) in Dow Jones 96 % 90% kg CO2e Sustainability Index # 2. 100% of our vege # 4. 100% of our port- # 6. 100% of our tables and potatoes folio to be without flavour consumer packaging will be p roduced using enhancers, artificial flavo- will be recyclable by sustainable farming urs and artificial colourants the end of 2022 practices by the end by the end of 2022 of 2025 (2019: 95%) (2019: 73%) * Per ton of finished goods 77% 97% 83%** from our own operations. ** This figure includes one pro- ject which was completed in December 2020 but first went to production in 2021. 12 | 2020 Sustainability Report Introduction | Business for good | Better sourcing | Better nutrition | Better operations | Solid foundations | Data
Promoting Plant-Based Foods Supporting the shift towards a flexitarian diet is central to our Available in more purpose of serving the world than 25,000 stores with better food. across Europe The world’s population is predicted to reach al- ily favourites – with or without meat. The Chick- most 10 billion by 2050. In order to provide this en-Free Dippers were voted Product of the Year growing population with healthy, nutritious food in the Free-From category of the UK Consumer whilst remaining within safe environmental lim- Survey of Product Innovation in early 2021. its, the world must undergo a substantial shift We will continue to champion a more flexitari- towards more plant-based options. A global an diet, helping consumers across Europe to put switch to a ‘planetary health diet’ with a high- plants at the heart of every meal through tasty, er proportion of plant-based options could also nutritious food that fits easily into their everyday prevent approximately 11 million deaths per lives. We will strive continually to innovate and year.1 improve our products, and have the goal of tri- Our pan-European Green Cuisine range is de- pling our sales from Green Cuisine within the signed to offer popular meat-free choices for next two years. 5X consumers and empower both meat-eaters and vegetarians to make culinary choices that sup- port planetary health. The Green Cuisine range includes meat-free versions of family favourites, as well as delicious plant-based food that are heroes in their own right, such as falafel and veg- gie fingers. Our Green Cuisine Pea Protein range has a 5x smaller carbon footprint on average compared to red meat2 . None of the products lower carbon contain soy. footprint vs red meat2 2020 was a critical year for the expansion of our Green Cuisine range. It is now the fast- est-growing frozen plant-based brand in Eu- 1. Summary Report of the EAT-Lancet Commission (2017). rope, available in all 13 markets where we op- 2. Results are based on a screening Life Cycle Assessment (LCA), which is neither ISO 14040/14044 compliant nor critically erate, and representing €30 million of revenue reviewed. Primary data are used for the Green Cuisine pro- in 2020. The launch of our chicken-free range in duction. Generic data for the supply chain of main ingredi- ents, distribution, use and end-of-life treatment and for the the UK was a major success, and testament to production of the meat alternatives. The comparison is per our expertise in developing tasty, nutritious fam- kilogram consumed product. Green Cuisine Chicken-free Southern Fried Strips. 13 | 2020 Sustainability Report Introduction | Business for good | Better sourcing | Better nutrition | Better operations | Solid foundations | Data
Better sourcing 14 | 2020 Sustainability Report Introduction | Business for good | Better sourcing | Better nutrition | Better operations | Solid foundations | Data
Our Oceans Overfishing poses enormous shift towards healthier, more sustainable eating. risks to future fish stocks, That’s why we’ve committed to using 100% fish Supporting fisheries in and seafood from sustainable fishing or respon- ecosystems and societies. sible farming by the end of 2025. becoming ’MSC-certified’ Our Fish and Seafood Policy stipulates that we Where a fishery is not yet certified, Nomad Over a third of global fish stocks are now fished only use sources recognised by The Food and Foods engages with them to determine on beyond biologically sustainable limits 3 . Further Agriculture Organisation (FAO) or complying a case-by-case basis whether the fishery is damage is being done by careless fishing prac- with either the FAO Code of Conduct for Re- on a credible journey to certification with- tices, including avoidable bycatch of non-target sponsible Fisheries or the FAO Technical Guide- in a maximum of five years. If approved by The importance of protect- species and fishing equipment left in the ocean: lines for Aquaculture. We do not source illegal, internal teams, Nomad Foods supports fish- ing marine life is encapsulat- a significant contributor to plastic pollution. Sea- unregulated or unreported (IUU) wild capture eries with: ed in UN SDG 14: Life Under food supply chains are also at risk of a range of fish for any of our markets, nor fish stocks that Water. Overfishing and the - Advice related issues of illegal, human rights abuses, including modern slavery. are depleted or recovering. - Market access unreported and unregulat- These practices, if unmanaged, threaten the fu- We’re proud to have been among the first ed fishing, are the focus of - Sharing best practice resources ture of the oceans and the communities who brands to work with independent certification UN SDG target 14.4 which - Roundtable discussions aims to restore fish stocks in rely on them. schemes, and continue to believe that certifi- - Access to Nomad Foods’ network the shortest time feasible. Sourcing fish sustainably is challenging and cation can have a long-term positive impact in As the world’s largest buyer requires long-term commitment and collabo- maintaining ocean health. For over 20 years, we of certified wild caught white fish, we recognise our ration. Given that fully responsible sourcing is have worked closely with the Marine Steward- responsibility in encourag- multi-faceted, it can never be comprehensive- ship Council (MSC): an international non-profit try and ultimately protect oceans and fish stocks. ing fisheries to continuously ly delivered by a single organisation or certifica- organisation which protects oceans and safe- In parallel, to reduce the pressure on wild fish improve their practices to ensure the health of fish tion scheme. However, to feed a growing world guards seafood supplies. Sourcing our fish and stocks, we are increasing the proportion of re- stocks, vulnerable species population and support the many communities seafood from ‘MSC-certified’ sources means sponsibly farmed fish in our portfolio. Aquacul- and ocean habitats. who rely on fishing for food and livelihoods, we that fisheries must meet strict requirements ture—the production of fish and seafood in a must find ways to address the challenges and around stock management, minimising impact farmed, managed environment—is a growing move forward together. Transitioning more fish- to eco-habitats, bycatch and the use of fishing industry and although there is a need to care- eries globally to certified sustainable practices gear. The MSC works with all types and sizes of fully manage its environmental impacts, includ- is essential to mitigate the risk of depleted fish fishery, and certification is carried out by inde- ing the use of wild fish stocks to create feed, we stocks and to protect the wider health of the pendent expert assessment bodies: a pre-req- believe that responsible aquaculture has an in- ocean. As the world’s largest buyer of certified uisite for all certification schemes. It has been creasingly important role to play in meeting fu- wild caught white fish, we are determined to independently benchmarked for its rigour and ture demand for protein. lead the industry in sourcing fish responsibly. credibility and is the most rigorous form of ac- We require the farms we source from to work to- creditation currently available. wards a trusted certification scheme and we work Our Approach We also actively work with non-certified fisher- closely with the Aquaculture Stewardship Coun- Our branded products are purchased by mil- ies to support them in becoming ‘MSC-certified’. cil (ASC) to ensure this. The ASC standard defines lions of consumers across Europe. This puts us This is essential to increase the future availability environmental and social criteria that need to 3. WWF: Facts, Effects and in a strong position to support a generational of sustainable, certified fish throughout our indus- be met, to obtain the certification. These include Overfishing Solutions. 15 | 2020 Sustainability Report Introduction | Business for good | Better sourcing | Better nutrition | Better operations | Solid foundations | Data
stipulating that fish farms do not operate in High We are already the largest branded producer Fish and seafood by helping local communities to upload photos Conservation Value Areas, that all fish feed is fully of eco-labelled wild-caught fish and seafood from sustainable and geo-locations of ghost gear through its Re- traceable to a responsibly managed source and globally. As we increase the proportion of cer- sources: porter app. In 2020, our internal Sustainability that farm workers’ rights are respected. tified fish in our portfolio, we are also able to in- Ambassador network volunteered to help ex- To make our supply chain more transparent to crease the number of products that carry eco- pand the accessibility of the GGGI Reporter app consumers, our Fish Provenance Tool, launched labels. Over the last five years, we have also by translating it into seven European languages. in 2010, allows consumers to identify the specific doubled the sales volume of products which are catch areas from which we source fish and sea- ASC-labelled. In five of our markets, 100% of our Future Plans >90% 95% 96% food products. fish and seafood products were eco-labelled Demand for frozen fish and seafood has risen with MSC or ASC by the end of 2019. during the Covid-19 pandemic. To ensure we Our Progress We are committed to going beyond certifica- meet this growing demand and achieve our tar- In 2020, 96% of our fish and seafood volume was tion to help prevent and recycle ocean-bound get of sourcing 100% certified fish and seafood sustainably sourced and held MSC or ASC certifi- waste. As a first step, in 2020 we became a mem- by 2025, we have launched a multi-year project 20 20 20 cation. This was due to our dedicated work with ber of the Global Ghost Gear Initiative (GGGI), to increase the global availability of certified 18 19 20 key fisheries to achieve MSC certification, includ- which aims to create solutions to the problem fish. As part of this project, we will allow an in- 834 ing a Namibian hake fishery. We are current- of lost, abandoned and discarded fishing gear. crease in fish sourcing from fisheries that have an ly also supporting a number of Alaska pollock One focus of the GGGI is to establish a global independently verified plan for achieving MSC fisheries to progress towards MSC certification. baseline of data on ghost gear around the world certification, but do not currently hold certifica- tion. While this represents a small percentage of Family favourite with fish fingers, peas and mash. the total volume of fish we source overall, work- ing with these “Fishery Improvement Projects” (or MSC or ASC eco- FIPs) enables us to help them accelerate their labelled products path to certification which in the longer term will lead to an overall increase in the availability of certified fish worldwide. In addition, we are working to increase our volume of aquaculture sourcing by encourag- ing consumers to incorporate more responsibly farmed fish and seafood into their meals. Our aim is to source 95% of our farmed fish and sea- food from certified sources by the end of 2021. To continue championing greater consumer awareness of responsible fish sourcing patterns, we will re-launch the Fish Provenance Tool, and re-brand it as “Captain’s Fish Finder”, as well as expanding it to France and Sweden. 16 | 2020 Sustainability Report Introduction | Business for good | Better sourcing | Better nutrition | Better operations | Solid foundations | Data
Helping Fisheries to Certification Restoring fish stocks to biologically sustainable As recently as 2020, with support from us, the Na- levels is central to UN SDG 14, Life Below Water, mibian hake trawl and longline fishery became and particularly to target 14.4 to regulate illegal, the first fishery in Namibia and only the second unreported, and unregulated fishing and restore in Africa to achieve MSC certification. fish stocks. Yet today, one-third of the world’s as- “The Namibian Hake fishery had been on sessed fisheries remain overfished. 4 the path towards MSC certification for over ten Fisheries and fishing companies certified by years, and was due to begin MSC assessment the Marine Stewardship Council (MSC) must in 2016. However, it was facing delays, in part meet strict sustainability criteria, helping to pro- due to the complexity of balancing deep-sea tect ocean life. But to achieve a sustainable fish and shallow-water hake stocks across fisheries.” supply chain at a global level, more fisheries “Nomad Foods worked closely with the fish- must transition to independently certified sus- ery throughout the process, liaising with the Na- tainable sourcing standards. mibian Hake Association, the MSC in South Af- Oliver Spring, Group Sustainability Manager rica, as well as with stakeholders in Brussels. We at Nomad Foods, explains how we work close- contacted the Ministry of Fisheries and Marine ly with our suppliers to help them achieve MSC Resources in Namibia to spur on progress and certification: emphasise the importance of this landmark for “Achieving certification from the MSC is a the Namibian fishing industry. This collaboration massive undertaking. We know that attaining a and togetherness was essential.” fully traceable supply chain end-to-end can be “Waiting for the results of the MSC certification a real challenge. But well-managed fisheries are was like being in the last minute of the World critical for safeguarding long-term fish supply, so Cup Final! Everyone was on tenterhooks. But we it’s definitely worth the effort.” achieved the result we wanted.” “As the world’s largest buyer of certified wild caught white fish, we use our influence to en- As a result of this collaboration, the Namibian gage with fisheries and champion MSC certifi- Hake fishery will add up to 160,000 tonnes of sus- cation. If selecting new non-certified suppliers, tainable hake into the sustainable seafood sup- we require them to provide a credible, transpar- ply chain5. The fishery is now working closely with While our first priority is to source ‘MSC-certified’ ent and independently verified plan for achiev- the South African hake trawl fishery to compare fish whenever possible, we are also proud of ing certification within a clear time frame. Then stock assessments and rebuild fish stocks together. we work with them on their journey. Over the our work with non-certified fisheries, supporting years, this approach has led to major success- them on their certification journey. This is essential es, including the MSC certification of one of the to increase the future availability of certified world’s largest whitefish Alaska Pollock fishery in 2005.” fish throughout our industry. 4. WWF: Overfishing. Stefan Descheemaeker, 5. Saving Seafood: Namibian fishery is second in Africa to be certified as sustainable (2020). CEO Nomad Foods 17 | 2020 Sustainability Report Introduction | Business for good | Better sourcing | Better nutrition | Better operations | Solid foundations | Data
Our Fields Sustainable and resilient SAI Platform’s Farm Sustainability Assessment UN SDG 15 underlines the necessity of protecting and restoring (FSA) Framework to assess the profile of our sup- natural ecosystems. This includes combatting desertification agriculture is essential for pliers and farmers. The FSA Framework covers and soil degradation in line with target 15.3 and halting biodiversity loss as set out in target 15.5. As a major provider maintaining global ecosystems 10 fundamental components of sustainable ag- of nutritious vegetables and potatoes across Europe, we riculture, including soil management, biodiver- want to lead the way towards a system in which agriculture – now and in the future. sity and labour conditions. Farms or farm man- is more resilient, productive and sustainable. agement groups are awarded bronze, silver or Food businesses today face major challenges: gold depending on which threshold of require- providing nutritious food while protecting natu- ments are met. Our target is for all of our suppli- ral resources, ecosystems, biodiversity, land and ers to achieve a minimum FSA silver verification soil quality, and the communities and workers by 2025. connected to agriculture and farming. Failing to Our FSA project team is responsible for driving achieve progress in this space means that farm- progress towards our target. This is a cross-func- Prog ai n res ers will be increasingly impacted by the effects tional team made up of representatives from e Ch Fie sive lu te ld of climate change, which in turn may result in functions including Sustainability, Research and Va la Collab to Tec e to P Re l n s, o Fa h reduced yields. Development, Data Management, Supplier As- b d p la inst r a t ct ss ves, itute io ge e n no y e s a surance, Procurement, Agriculture and Market- i in rat rmer o pmen Va wi, f it s or Se lo bu pe m fa nts t r th Pro tec or H iet ne Our Approach gy ing. The team meets once a month to track pro- o r e h a te em n re dev ng int ol r al est n - We are committed to sourcing 100% of our vege- gress against our roadmap and identify priority inability Asse rativ se el- Lo Co o Jo re sta v ag g arc Soci tables and potatoes through sustainable farming areas for action. To implement the roadmap, our Su s s gy i h m rm practices by the end of 2025. This target, and our Fieldstaff of agricultural experts focus on build- e Agriculture en Fa Policy for Sustainable Agriculture, apply to all the ing long-term, trusted relationships with our di- t t al-econom welfare, Knowle ntal nagemen r Social Impacts mmu e Sustainable l vegetables, potatoes, fruit and fresh herbs we rect suppliers and work with them as part of a a rga diversit y, i c m at t r age - t e Supplier- als, ra Impacts F i el d s p e m or f i use (in the form of raw materials, ingredients or continuous improvement process in line with FSA Agriculture o Fa r m & n s finished goods). Over half of these are sourced recommendations. In 2020, we introduced our h So nt m an i a p from farmers with whom we have a direct rela- “sustainable agriculture model” to our suppliers on a rm M s,Tri e t il o , B io n Fa r W s o p er k tionship and a long-term contract, and the re- to help them understand our holistic approach Co m p ut d le, and nit g me mainder are sourced from trusted third-party to sustainability in our vegetable supply chain. In e F ic C E n ted suppliers. Ingredients covered by topic-specific Beyond our own supply chain, we also sit on e Re er r n vi r a la sustainability schemes, such as palm oil or soy, two SAI Platform working groups: “Tools and Co s, gr y n su m tio lai m s Prod er c lit y te In ap are not covered in this scope. Our Policy cov- Guidance” and “Assurance”. In 2020, our con- n u ct q u a ers the economic, environmental and social im- tribution included assisting the SAI Platform with l ita Co t pacts of our agricultural practices, and stipulates the development of version three of the FSA n su en m nm that all potatoes and vegetables will be grown Framework, which will be launched in 2021. This Com er & B rand Alig ge petitive Advanta using verified sustainable farming methods. reflects our determination to lead in this area We joined the Sustainable Agriculture Initia- and ensure we drive change within the farm- tive Platform (SAI Platform) in 2018. We use the ing industry. 18 | 2020 Sustainability Report Introduction | Business for good | Better sourcing | Better nutrition | Better operations | Solid foundations | Data
Water risk is increasingly important for compa- the first UK farm management group and the My proudest achieving our ambitions. To make this happen, nies to assess, especially in agriculture supply first globally in frozen food, to be awarded the we will continue engaging with third-party sup- chains. We are working towards ensuring that FSA gold level for our Birds Eye Pea Harvest. In moment from pliers and work with our key suppliers to create none of our crops are sourced from very scarce addition, iglo Germany was verified as FSA Gold 2020 was a roadmap for achieving 100% FSA silver or gold water areas. In addition, the FSA Framework in- for all “own grown” spinach, herbs and autumn achieving gold verification. We will publish a quarterly newslet- cludes questions about water management, vegetables. ter sharing success stories and setting out clear where two mandatory questions cover legal Biodiversity has been a focus area of ours FSA verification objectives for all suppliers. compliance and the remaining eight are op- for many years. In the UK, 70% of our farmers for our Birds Eye We will also implement strong governance tional depending on silver or gold level. already have unique biodiversity action plans Pea Harvest in procedures to help us monitor FSA verification Under our FSA gold ambition for all direct in place, and our goal is to reach 100% by the and report publicly on our FSA status. Internally, growers, all farms will as a minimum have a wa- end of 2022. These plans consist of tangible ac- the UK and iglo we will also set interim targets to drive ongoing ter plan to optimise water usage and reduce loss. tions for farmers to enhance biodiversity on their Germany site. improvement, and regularly share our progress This will cover approximately 50% of our vegeta- farms, such as delaying hedge cutting until late It shows the with specific crops and key suppliers towards our ble and potato supply. Likewise, many of the FSA winter to prolong feeding opportunities for farm 2025 target. silver or gold benchmarked schemes, including birds, and introducing floral species to grass mar- world that, Beyond driving FSA verification, we will also Red Tractor in the UK and Vegaplan in Belgium, gins to provide a source of nectar for insects. We even for a launch a one-year pilot in 2021 across ten sites have requirements around water usage. continued our collaboration with the Depart- large group of (with corresponding controls) to investigate the ment of Agricultural and Forestry Sciences at Tus- practicalities of planting wildflower margins an- Our Progress cia University focusing on increasing biodiversity farmers, gold nually in our UK pea fields. We will be working 77% of our vegetables and potatoes are now across farms in Italy. FSA verification with Yorkshire Wildlife Trust to measure the di- FSA silver or gold level. This is the result of on- is possible. versity of pollinators and birds by these margins, going engagement with key suppliers, as well Future Plans Megan McKerchar, and use the results to guide our future activity. as targeted focus on specific crops. In 2020, we Our primary goal remains achieving 100% FSA Agriculture conducted a full assessment of all our suppliers, silver or gold verification for all our vegetables Sustainability mapping all procured volumes back to farms or and potatoes by 2025. To achieve this requires Manager farm groups using supply chain mapping soft- continuing our targeted focus on specific crops ware, and asking whether they had FSA verifi- and regions. In line with the Nomad Foods val- 77% cation or an equivalent benchmarked scheme. ue “Always Striving”, we are also developing a Using these results, we identified approximate- best practice framework in our agricultural sup- ly 20 key suppliers, based on their production ply chain, recognising that we can always do volume and strategic importance, to priori- better and that gold verification should not be tise for setting clear FSA implementation plans. a final destination. FSA silver or gold Many of these suppliers already had existing Procured vegetables account for just under level benchmarked schemes in place for all or part half of our vegetable volume. Driving aware- of their portfolio and we have met regularly with ness and ensuring deeper understanding of the these key suppliers to discuss and drive progress importance of sustainable agriculture, particu- towards full FSA verification. As a result, we were larly amongst third-party suppliers, is critical to 19 | 2020 Sustainability Report Introduction | Business for good | Better sourcing | Better nutrition | Better operations | Solid foundations | Data
Preserving and Enhancing Soil Health 95% of the planet’s food relies on soil. But one- phere by holding it in their leaf and root mass.” third of the world’s arable soils are now degrad- “We planted 1,000 acres of cover crops, both ed, with 30 football pitches’ worth of soil being before and after pea production, and assessed lost every minute due to degradation. 6 the nutrient and carbon content to measure the Cover crops are phenomenal Some industrial farming practices includ- impact of these catch crops on the fertility, ni- ing monocropping and synthetic fertilisers can trogen content and carbon capture of the soil.” engines of carbon capture. They damage soil health over time. In contrast, re- “Results from the pilot showed that planting could be critical to helping us generative agriculture contributes to healthy cover crops after pea production has the poten- achieve our zero carbon soil with improved carbon sequestration, great- tial, with the appropriate time and conditions, to er water retention and less need for pesticides significantly benefit soil health and carbon cap- ambitions as a business. and synthetic fertilisers. This is central to com- ture. Data from samples taken from the post-pea James Hopwood, batting desertification and restoring degraded cover crops showed that these crops accumu- UK Agriculture Manager land and soil in line with UN SDG 15.3. lated an average of 136kg of carbon dioxide In 2020 our UK Agriculture Manager James equivalent per hectare per day, as well as storing Hopwood led an ambitious pilot in the Humber valuable nutrients such as nitrogen and potassi- region of East England, to improve soil health um. This could be critical to helping us achieve and capture carbon through cover crops. our zero carbon ambitions as a business.” “Soil is absolutely critical for feeding a growing population. And maintaining and rejuvenating Close relationships with growers and partners, soils is also fundamental for our business. At No- the agility to learn and adapt, and Nomad mad Foods, we’ve been growing Birds Eye peas in Foods’ size and geographical spread are all crit- the UK for 75 years. This long heritage is based on ical ingredients for the success of this project – our strong relationships with the farmers, as well as and its future growth. our longstanding sustainability credentials.” “We grow our pea crops across 10,500 hec- “All the peas we grow in the UK fall within 40 tares of land. Understanding how cover crops miles of Hull: a very small radius. In 2020, we part- can be incorporated into cultural rotations is nered with Yorkshire Water, Future Food Solutions really important. As our in-house agriculture and 40 of our farmers in this area to measure the teams work continuously with our farmers to ap- impact of cover crops on the health of the soil.” ply the same data-driven approach across their farmed area, our influence could in time extend Cover crops, James explains, are known to have beyond 250,000 hectares. That’s why projects a host of benefits for soil health: like this are so essential.” “Cover crops store nutrients, including nitro- gen, reducing the need for fertiliser and prevent- ing nitrates from contaminating nearby water supplies. They increase the levels of organic mat- ter in soils, and sequester carbon from the atmos- 6. Soil Association: Save Our Soil. 20 | 2020 Sustainability Report Introduction | Business for good | Better sourcing | Better nutrition | Better operations | Solid foundations | Data
Our Approach to Specific Ingredients Forests help to stabilise the sible. Where this is not possible, we compensate Future Plans through a credit scheme. In 2021, we are determined to increase the pro- climate and are vital for In many of our recipes, we have replaced portion of responsibly sourced soy in our portfo- biodiversity, so we must monitor palm oil with healthier alternative oils or re- lio. To help achieve this goal, we will conduct a moved it altogether. Where we do use palm deep-dive into the results of our chicken suppli- ingredients that pose a oil, it’s because it provides the optimal phys- er assessment process to identify which chang- deforestation risk. ical properties needed for our products. Our 1 es will have the biggest impact in the shortest new dedicated Palm Oil Policy states that we time. Based on this analysis, we will create a soy Soy is the second largest agricultural driver of will only purchase palm oil that has Roundta- roadmap for moving towards 100% responsibly deforestation worldwide7. It poses significant en- ble for Sustainable Palm Oil (RSPO) Segregated RSPO-1106262 certified soy, focusing on our chicken supply vironmental risks unless proper safeguards are in certification, meaning it can be traced back Check our progress at chain. This will include supplier engagement place. Soy is present in many food products as to RSPO-certified mills. We do not use the Book www.rspo.org/members/455 support and detailed governance processes. soybean oil, and soybean meal is widely used & Claim model, whereby an organisation pur- In line with our Soy Policy, we will also continue in animal feed. chases RSPO credits to support the production to buy credits for all uncertified soy in our sup- The deforestation of native forests for palm oil of certified sustainable palm oil but does not use RSPO segregated ply chain. production is associated with loss of biodiversity physically certified palm oil. palm oil Achieving 100% RSPO-certified Segregated and significant carbon emissions. palm oil is a priority for 2021. In order to limit our impact and risks as a busi- Our Progress ness, protect forests and conserve biodiversity, The vast majority of our soy usage is indirect, with we must use deforestation-free soy and sustain- animal feed representing approximately 98% of able palm oil or palm oil alternatives. our footprint. Soy for poultry feed accounts for 88% 88% 99% roughly half of our soy footprint, so working with our Our Approach chicken suppliers to promote responsibly sourced Our total soy footprint is largely derived from soy is a major priority. To provide external exper- feed for animal-based ingredients used in our tise on governing and controlling soy certification products. Launched in 2020, our Soy Policy sets within our supply chain, in 2020 we conducted an 20 20 20 18 19 20 out our belief that all soy should be responsibly internal training session with an external consult- sourced, and our commitment towards using ant. We also conducted a full assessment of all our 12% 100% responsibly sourced soy across our supply chicken suppliers and used the results to purchase chain whether it be for indirect or direct use. We credits for the uncertified soy in our supply chain. commit to verifying that the soy in our supply By the end of 2020, 12% of our soy was deforesta- chain is deforestation free. This means it is neither tion free, in line with our Soy Policy. from legally nor illegally deforested land, and is In 2020, we successfully transitioned the vast sourced from relevant schemes, wherever pos- majority of our palm oil to RSPO-certified Seg- deforestation-free regated. 99% of the palm oil we buy is now soy RSPO-certified Segregated, with the remaining 7. WWF: The story of soy. 1% to be completed by the end of Q2 2021. 21 | 2020 Sustainability Report Introduction | Business for good | Better sourcing | Better nutrition | Better operations | Solid foundations | Data
Our Animal Welfare Standards We work with global suppliers chicken from our supply chain and are working 3 Future Plans to provide more enriched environments for an- Following our supplier assessment process, we and stakeholders to ensure the imals, limit transportation time and reduce an- 2 Purchase will conduct a deep-dive into the results to bet- animals from which we source tibiotic usage. We are signatories of the Better volume of ter understand where further improvement is Chicken Commitment: a set of criteria for broiler animal needed. Our new cross-functional Chicken our meat are raised responsibly. chickens going significantly beyond legal min- protein Working Group will be responsible for develop- imums, developed by 25 animal welfare and 1 ing a clear action roadmap to improve chicken Animal welfare is an area of concern for us and animal rights organisations from across Europe. welfare and identifying key performance indi- with key stakeholders, including consumers who As part of our commitment, we have created cators to assess our progress. This will enable us 1. 74% fish and seafood are increasingly interested in knowing where their a cross-functional Chicken Working Group and to work with suppliers to address these issues. 2. 17% poultry food comes from and how it is produced. Major work actively with our suppliers to continue to We will extend our supplier audit process to in- 3. 10% red meat risks to animal welfare include poor living con- improve the welfare of the chickens we use, with clude welfare audits with ten of our key chicken ditions and prophylactic use of antibiotics on a goal to meet the requirements of the commit- suppliers. These will include detailed virtual site healthy groups may also have subsequent risk ment by 2026 across our entire portfolio. assessments and a review of relevant certifica- 92% to human health. Eggs represent less than 1% of our portfolio, tions, processes and procedures. This will give us but where we do use eggs or products derived a more robust and detailed understanding of Our Approach from eggs, our policy stipulates they are sourced the current situation and areas for improvement. Our portfolio consists mainly of fish, seafood, from barn-reared animals as a minimum. We will also intensify internal communication vegetables and vegetarian foods. Besides fish, cage-free egg to further increase knowledge and understand- our other main source of animal proteins is poul- Our Progress supply chain ing of animal welfare throughout the business. try. We support safe and responsible sourcing, Over the past year, we have continued to drive which includes traceability and animal welfare, progress towards our target for 100% of our eggs as well as environmental and ethical concerns. to originate from cage-free sources. We experi- We are committed to going beyond regulato- enced some delays partly due to the Covid-19 ry standards when sourcing poultry and eggs. pandemic which means 92% of our supply is In addition to EU laws, Our Policy on Ani- cage-free with plans in place to complete the mal Product Sourcing covers requirements for transition to 100% by mid-2021, as we remain humane slaughtering. It also specified the re- committed to remove cage-reared eggs across sponsible use of antibiotics to prevent suffering our portfolio. and that prophylactic use of antibiotics is not In 2020, we conducted a full welfare assess- allowed. In addition, we set further specific re- ment of all our chicken suppliers. This covered quirements for beef, eggs and honey products. a range of topics, including stunning methods, Our Policy places particular focus on chicken antibiotic use, environmental enrichment and sourcing as it is the second largest source of pro- stocking density. The results confirmed that in tein in our portfolio, including requirements for addition to being fully cage-free, 100% of our improved conditions that are now being imple- chickens are stunned prior to slaughter: an im- mented. We have fully eliminated cage-reared portant step in improving their welfare. 22 | 2020 Sustainability Report Introduction | Business for good | Better sourcing | Better nutrition | Better operations | Solid foundations | Data
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