Setting a sustainability strategy requires a holistic approach.
By Maggie Glisan
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 building trust have topped the list of Innova Marketing 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 the health of the planet is their top global concern, rather than the health of the population,” said Lu Ann Williams, insights director at Innova.
It’s a significant shift, and it’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, the set of 17 standards tackle the world’s most challenging issues and outline targets to achieve by 2030.
Lu Ann Williams, Innova Market Insights
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 well-being, gender equality, and safe and inclusive communities.
The SDGs are the cornerstone of Mexico City-based Grupo Bimbo’s ambitious 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 directly 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 to sustainability 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.
© Grupo-Bimbo
Alejandra Vázquez, global sustainability VP, Grupo Bimbo
“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 they might form alliances and work together toward some of 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 the environmental, social and governmental standards in 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 includes 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.”
Fast forward three years, and Zvaners thinks bakeries are more inclined to commit to specific sustainability targets.
That’s in part because of increased pressure from major retailers like Walmart and Target to meet sustainability specifications, but it’s also about the reality of climate impacts (like drought in the Western US) on individual businesses.
One significant way ABA has helped support bakeries’ sustainability efforts is through its promotion of the Environmental Protection Agency (EPA)’s Energy Star certification. The national program recognizes participating bakery facilities that improve energy efficiency by 10% or more within five years, and the top 25% of energy-efficient US manufacturing facilities receive the EPA’s Energy Star certification.
Fifty commercial bread and roll bakeries and 24 cookie and cracker bakeries have received recognition since ABA began partnering with the EPA in 2010. Of the 92 manufacturing plants recognized by the EPA’s Energy Star certification for superior energy performance in 2021, 42 were ABA member facilities, and their efforts resulted in an energy saving of just over 6 million MMbtu.
“Energy Star was an amazing first step for the sector and continues to be a strong program,” Zvaners said. “It has provided a base framework. For those that were starting to think about sustainability early on, it provided a cookbook of ideas.”
Portfolio Manager, the Energy Star program’s online benchmarking tool, has also proven to be an effective resource for commercial bakeries. The tool allows individual companies to input their facility’s energy uses, then calculates an energy performance score so they can see where they rank relative to their peers. Nearly 25% of US commercial building space is actively benchmarking on the platform.
Although the tool doesn’t allow users to identify competitors by score, it does help bakeries get a sense of where they are excelling and where they can improve based on where they stack up against their peers. Ultimately, that data can help inform strategy. And it can lead to significant cost savings, too.
Another program encouraging better sustainability practices is the US Department of Energy (DOE)’s Better Plants program. As part of the Better Buildings Initiative, Better Plants partners with manufacturers and water and wastewater utilities to boost their competitiveness by improving energy and water efficiency and reducing waste and greenhouse gas emissions.
Flowers Baking Co. of Batesville was recently recognized with a Better Practice Award for its energy efficiency projects, which included boiler, compressed air, LED lighting upgrades, waste heat recovery and variable-frequency drives for exhaust fans, among other projects. In total, the bakery reduced its annual energy use by more than 13,000 MMBtu.
“When planning equipment upgrades, Flowers Baking Co. of Batesville incorporated energy efficiency throughout the project design, reducing energy usage and costs long-term,” said Margaret Ann Marsh, VP of sustainability and environmental at Thomasville, GA-based Flowers Foods. “Across the Flowers network, this program has become a case study in how to look at every operational upgrade project as an energy efficiency opportunity.”
Flowers’ efforts highlight a key takeaway: Reducing your environmental footprint isn’t just good for the planet; it’s good for business. Companies that lean in to the challenge and lead with innovative solutions come out with a competitive advantage.
Energy-efficient building improvements are not the only way to get out ahead of the pack, of course. Packaging is one of the biggest hot-button issues when it comes to sustainability, especially from a consumer perspective. According to Innova’s Lifestyle & Attitude Survey, as many as 20% to 25% of consumers adjusted their product choices for environmental reasons such as choosing food with environmentally friendly packaging.
Karen Reed, global director of marketing and communications at Kwik Lok, said one of the biggest challenges when it comes to meeting packaging sustainability goals in the US is the lack of federal regulation.
“There’s currently a patchwork of regulatory obligations, and that can be difficult for bakeries to navigate,” Reed said. “As more state legislation is passed, it will become increasingly challenging.”
Zvaners also said that packaging is top of mind right now for ABA members as they sort through state-by-state legislation, but she expects Congress to step in to set some general expectations — much like they did with GMO labeling — that level the playing field at some point in the next few years.
In the meantime, Reed said Kwik Lok is focusing on developing products that give companies options, depending on what their current sustainability requirements and goals are.
“We’re trying to develop a portfolio of options, where people can choose what works for them right now, knowing that that is going to change rapidly,” she said. “We are paying attention to what’s happening with material science and with regulation, and we see more change on the horizon.”
They say that change is the only constant in life. And with that, consumers will no doubt expect faster progress moving forward. That includes commercial baking companies expanding the definition of sustainability and taking a more holistic approach when it comes to goal setting. It also means using competition as a driver for innovation …but doing so in a way that keeps the larger picture in mind.
“Success hinges on collaboration,” Reed said. “This is not something any one company’s going to do by themselves. We have to change the whole system. We have to change how we approach our work. We have to create infrastructure, both in our companies and in the places that we live.”
Content provided by Commercial Baking magazine (Avant Food Media)
