Commitment emphasizes dedication to sustainable agriculture and environmental stewardship throughout the supply chain
MINNEAPOLIS, Sept. 25, 2013 /PRNewswire/ -- General Mills announced today a commitment to sustainably source 100 percent of its 10 priority ingredients by 2020. These ingredients represent 50 percent of General Mills' total raw material purchases. The commitment builds on the company's sustainability mission to conserve and protect the resources upon which its business depends.
The commitment, part of General Mills' long-term sustainable sourcing strategy, covers a broad range of raw materials including oats, wheat, corn, dairy, fiber packaging, cocoa, vanilla, palm oil, sugar cane and sugar beets.
"General Mills is committed to creating long-term value for our business, and our society," said Ken Powell, chief executive officer of General Mills. "Producing enough food to feed an increasingly hungry world will require not only innovation and dedication, but also careful attention to the impact of agriculture on our environment."
The opportunities for each priority ingredient are unique and geographically specific, which require General Mills to pursue a range of sustainable approaches including certification, verification, continuous improvement, and origin-direct investment.
"As a food company, we know that the vitality of our business depends upon access to high-quality ingredients," said Jerry Lynch, vice president and chief sustainability officer at General Mills. "We also know where we can have the greatest impact from an environmental standpoint. We believe that through sustainable sourcing, we can create the most long-term economic, environmental and social value."
Improving sustainability is a continuing process – one that General Mills does not undertake alone. Nearly two-thirds of General Mills' greenhouse gas emissions and 99 percent of water use occur outside the company's operations, primarily in agriculture. Therefore, the company believes it can have the greatest impact by working with industry partners and non-governmental agencies across the supply chain to identify new solutions.
"By understanding their environmental risks, prioritizing where the company can have the greatest impact and committing to sustainable sourcing, General Mills can have a significant impact," said Dave McLaughlin, vice president of agriculture, World Wildlife Fund (WWF). "The company has an opportunity to take a leading role in the move toward global sustainable agriculture, while addressing critical issues like ecosystem health and water scarcity."
Since 2010, General Mills and WWF have been working together to integrate sustainability into the company's supply chain, conducting a supply risk analysis of the company's agricultural sourcing and water risk assessment.
In addition, General Mills counts among its partners industry groups including Field-to-Market: The Alliance for Sustainable Agriculture and Bonsucro as well as non-governmental organizations like The Nature Conservancy and CARE.
Specific commitments by ingredient area are as follows:
100 percent of the company's oats will be sourced from growing regions that demonstrate continuous improvement against industry-basedenvironmental metrics.
100 percent of General Mills' U.S. wheat will be sourced from growing regions that
demonstrate continuous improvement against the Field-to-Market framework or comparable environmental metrics.
100 percent of the company's dry milled corn will be sourced from growing regions that demonstrate continuous improvement against the Field-to-Market framework or comparable environmental metrics.
100 percent of General Mills' directly sourced fluid milk will originate from producing
regions that demonstrate continuous improvement as measured by the Dairy Sustainability Framework (U.S.) or other comparable environmental metrics (globally).
100 percent of the company's fiber packaging will be from recycled material or from virgin wood fiber regions that are known TO NOT BE contributing to deforestation. Any high-risk regions will be independently verified.
100 percent of General Mills' cocoa will be sourced through origin-direct investment, which will improve the incomes of smallholder farmers and the quality of ingredients.
100 percent of the company's vanilla will be sourced through origin direct investment, which will improve the incomes of smallholder farmers and the quality of ingredients.
100 percent of the company's palm oil will be sourced from responsible and sustainable sources in 2015.
100 percent of General Mills' sugar cane will be sourced from responsible and sustainable sources.
100 percent of the company's U.S. beet sugar will be sourced from growing regions that demonstrate continuous improvement against the Field-To-Market framework or comparable environmental metrics.
In addition to its sustainable commitment, General Mills will continue to support the humane treatment of animals in agriculture. The company will enforce its animal welfare policy, which covers pork, milk and egg production, antibiotic use and animal testing.
To achieve its 2020 goal, General Mills will continue to follow a four-step sustainable sourcing model – assessment, strategy formation, transformation and monitoring/evaluation.
General Mills Strengthens Commitment to Small Farmers
Since the early 1900's, General Mills has worked closely with smallholder farmers around the world to promote sustainable agriculture. Through the company's present-day Holistic Value Creation strategy, it is building a model focused on origin direct investment, which improves livelihoods and ensures sustainable sources of raw materials.Most recently, General Mills, the General Mills Foundation and Green Giant launched a program in Peru to foster improved profitability for smallholder, primarily female, artichoke farmers to ensure the availability of premium artichokes for consumers in France and throughout Europe. A similar program was initiated in Madagascar to foster greater economic vitality for smallholder vanilla farmers to ensure the availability of high quality vanilla for future generations.
"We are dedicated to working directly with smallholder farmers," said Lynch. "The ripple effect from our investment is clear across these small communities – by strengthening farmer livelihoods, we see an increase in the overall standards of living. Our partnerships with these farmers are a true expression of our mission of nourishing lives."
About General Mills
General Mills is one of the world's leading food companies, operating in more than 100 countries around the world. Its brands include Cheerios, Fiber One, Haagen-Dazs, Nature Valley, Yoplait, Betty Crocker, Pillsbury, Green Giant, Old El Paso, Wanchai Ferry, Yoki, and more. Headquartered in Minneapolis, Minn., USA, General Mills had fiscal 2013 worldwide sales of US $17.8 billion.
SOURCE General Mills
|Start Premium Trial||Register For Free|
|P||F||Fund Financial Data (13,000+ funds)|
|P||F||Stock Financial Data (7,000+ stocks)|
|P||F||Stock and Fund Screeners (basic)|
|P||F||Investing Articles and Market Commentary|
|P||F||Articles Archive (>30 days)|
|P||F||Discuss (dozens of stock, fund, bond, and general bulletin boards)|
|P||F||Portfolio Manager (basic)|
|P||F||Morningstar Investment Classroom|
|P||F||Access Your Portfolio Anytime, Anywhere via Your Mobile Device|
|P||Morningstar Fund Analyst Reports (full research on 1,700 funds, ETFs, and CEFs)|
|P||Morningstar Stock Analyst Reports (full research on more than 1,100 stocks)|
|P||Portfolio Manager (advanced with 10 X-Ray analyses, including recommendations)|
|P||Portfolio Monitor (monthly and on-demand personalized portfolio statements)|
|P||Morningstar Proprietary Stock Information (stock star ratings, buy/sell prices, economic moat ratings, and more)|
|P||Morningstar 5-Star Stock and Fund Favorites & Red Flags eNewsletters|
|P||Premium Stock and Fund Screeners (advanced with nearly infinite ways to find the best securities for you)|
|P||Discounts on Morningstar newsletters, books, seminars, and more|
Access these features and more when you sign up for Free Membership.
Join Morningstar today. It's Free.
Access these features and more when you sign up for Premium Membership.
Start your free 14-day trial today online
Your subscription may be tax deductible. Please contact your tax advisor.