We know that deforestation is a major source of greenhouse gas emissions and that the global demand for agricultural commodities is one of the leading causes of pressure on forests. In addition to their potential for carbon sequestration and climate regulation, forests are the habitat of around 80% of the earth’s biodiversity.
For several years the Jerónimo Martins Group has sought to responsibly manage the incorporation of the main commodities associated with deforestation and conversion of high conservation value ecosystems (palm oil, wood and paper fibres, soy, and beef) both in its products and in Private Brands’ and perishables packaging.
Since 2014, one of our strategies has been to map the presence of ingredients linked to deforestation and conversion of high conservation value ecosystems in our Private Brand and perishable products, collecting information from suppliers on these ingredients’ origin and sustainability certification.
We have been a member of the Roundtable on Sustainable Palm Oil (RPSO) since 2017 and, since 2019, of the Round Table on Responsible Soy (RTRS), two initiatives that promote alignment with best sustainable practices in the production of palm oil and soy. Biedronka is one of the Polish Coalition for Sustainable Palm Oil (PKZOP) founding members, whose objective is to certify 100% of the palm oil in Poland by 2023.
In 2019, the Group joined The Consumer Goods Forum’s Forest Positive Coalition of Action (FP CoA), which defines actions to ensure that private brands and perishable products meet environmental and social sustainability criteria. The FP CoA also encourages the main traders of these commodities and suppliers of private brands and perishable products to commit to fighting deforestation and conversion of high conservation value ecosystems, defining progress indicators and encouraging the public dissemination of the outcomes.
We are the only global food retailer to, and for the third consecutive year, achieve leadership level (‘A-’) in three commodities associated with deforestation risk.
Our strategy for palm oil is based on substitution with vegetable oils with a better nutritional profile, progressively ensuring its sustainable origin in cases where it is present in our products.
Since 2019, all the palm oil present in our Private Brand and perishable products in Portugal and Poland has RSPO certification, thus ensuring sustainable sourcing.
In Colombia, the level of RSPO certification is relatively low concerning the total produced. As a result, Ara joined the Colombian Government initiative “Acuerdo de Volunades para la Deforestación Cero en la Cadena de Aceite de Palma en Colombia” (Voluntary Agreement for Zero Deforestation in the Colombian Palm Oil Chain), aimed at ensuring that the palm oil used in Private Brands and perishables does not promote deforestation.
We work to ensure greater traceability in the origins declared for the soy used in animal feed, particularly in the poultry and pork categories, where most of the soy present in our supply chain is used.
In 2021, the uncertainty associated with the origin of the soy directly or indirectly present in Private Brand products and perishables* decreased to 15% (half of what it was in 2020), leading to greater visibility of soy from countries with deforestation risk, which increased to 52% of the total (15 p.p. more than in 2020). Despite this increase, our suppliers indicated that 17% of this soy was certified sustainable, that is, had, for example, Round Table on Responsible Soy (RTRS) or ProTerra certification
The Group’s goal is to, by 2030, achieve 100% certification of the virgin fibres used in our products and packaging. By 2021, 81% of the virgin fibres used in products and 70% in packaging were FSC® or PEFC certified.
In 2021 there was an increase in the consumption of virgin wood fibres and paper in Private Brand products associated with the sale of toilet paper and personal care wipes. However, only 0.4% of the fibres are from countries at risk of deforestation**, and of those, 99% are from sustainably managed forests as they are FSC® or PEFC certified.
Concerning the paper and wood used in packaging in 2021, more than 80% of the fibres were recycled (compared to 70% in 2020), while in the case of virgin fibres, there was an increase in those sourced from countries with a deforestation risk, representing 14% of the total (of this universe, 96% with FSC® or PEFC certification).
In 2021 we could trace all beef used in our Private Labels and perishables back to at least the country of origin. Based on this, we were able to ascertain that 0.5% of the total was from Brazil, a country at risk of deforestation associated with cattle production. Despite the reduced exposure to this ingredient, we continue to be a part of the beef working group under the CGF’s Forest Positive Coalition of Action..
Notes:
* Includes the five tiers of soy quantification in the value chain, according to the CGF’s “Calculation guidelines for the measurement of embedded soy usage in consumer goods businesses”, available at www.theconsumergoodsforum.com.
** The countries at risk of deforestation considered are defined according to The Consumer Goods Forum (CGF) guidelines for soy, paper and wood, and beef.
Information on the mapping out of the presence of ingredients linked to deforestation in Private Brand products and perishables was confirmed by an external and independent entity for the Group’s 2021 Annual Report.