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why

The rising global population and accelerated global development and resource use require that companies implement holistic approaches that achieve long-term social and environmental sustainability. Sustainable business models incorporate a triple bottom line approach and consider a wide range of stakeholder interests. They drive corporate innovation for sustainability and help embed sustainability into business purpose and processes. Companies that adopt this approach aspire to grow their businesses while also reducing their environmental footprints.

As one of the world’s leading manufacturers of quality food and beverages, with growers and production facilities around the globe, we understand the necessity of being good stewards of the environment. Reducing the resources we use and having an environmental management system in place help us to mitigate the impacts of climate change, better manage compliance, reduce costs and increase efficiencies. The risks of not doing these things can be detrimental to a manufacturing business and can impact profitability and reputation.

how

Our commitment to the environment is manifested through our sustainable business model strategies, which include understanding risks, setting goals and measuring progress against those goals. We make the biggest impact for our consumers, customers, employees and shareholders when we set and meet high goals as a business.

We take a precautionary approach to the environment by seeking to apply processes or practices with less environmental impact when possible. Our primary 2020 sustainability goal is to reduce our environmental footprint — defined as water and GHG emissions per tonne of food produced — by 50 percent. As we work toward this goal, we’ve integrated strategies throughout our global business operations to ensure the widest possible impact. Our supporting 2020 goals, which track back to Campbell’s FY2008 baseline, keep us continually focused on building sustainable business models. They include:

  • Reducing energy use by 35 percent and sourcing 40 percent of our electricity from renewable or alternative energy sources;
  • Recycling 95 percent of waste generated globally;
  • Eliminating 100 million pounds of packaging from Campbell products; and
  • Deriving 100 percent of our global packaging materials from sustainable sources (renewable, recyclable or recycled content).

We have also continued to strengthen our Environmental Management System (EMS) in order to measure performance, ensure compliance and integrate environmental programs into our global business operations. Our EMS includes a technology platform that is used to manage compliance issues and to help us manage and measure our progress against our goals.

Another key to a successful environmental sustainability strategy is to ensure that there is accountability across the entire business. This year, we evolved the way we drive sustainability strategy, performance measurement and results to clarify accountability and improve measurement and shared learning across the enterprise. We have created a Sustainability Steering Committee with key work streams and assigned leadership. This cross-functional Committee and network teams, which are co-led by the Vice President of Corporate Responsibility and Sustainability and the Vice President of Global Engineering include business leaders who are accountable for setting goals and managing progress against the goals in energy, water, waste, agriculture, packaging, procurement, transportation and contract manufacturing. The network teams are also responsible for evaluating and setting both long-term and annual performance.

what

Energy & Greenhouse Gas Emissions

The food and beverage sector is one of the top five consumers of fuels and power in U.S. manufacturing, according to the U.S. Department of Energy. Electricity usage and the burning of natural gas generate GHG emissions that contribute to climate change. As a corporation, we have an obligation to our employees, our customers and the environment to manage and reduce the energy that we use to produce our products. By finding efficiencies in our processes, we can reduce energy usage and the associated GHG emissions.

To ensure we are managing energy use effectively, we have tracked and publicly reported on electricity and fuel use in our manufacturing facilities since 2008. Since that time, we have reduced our energy usage by 9 percent per tonne of food produced and our GHG emissions by 23 percent per tonne of food produced.

As part of our energy management strategy, this past year we brought online a co-generation, combined heat and power unit at our Toronto, Canada, manufacturing facility that satisfies 93 percent of the steam and 95 percent of the plant’s electricity needs. We are also in the process of installing a second fuel cell at our Bloomfield, Connecticut, plant that will be operational in the summer of 2016. The two fuel cells, combined with an onsite solar array also installed this past year, will generate 100 percent of the plant’s electricity demand.

Our Bolthouse Farms operations have converted more than 200 diesel engines to cleaner electric power. This massive project spanned six different growing regions across the state of California and resulted in significant GHG emissions reductions. Bolthouse also achieved long-term overall cost and maintenance reductions, and can now participate in “demand-response” electricity reduction programs with the local utility provider.

Renewable Energy

We continue to evaluate and implement renewable energy technologies at our plant locations to demonstrate the viability of these clean sources of energy and to contribute to state Renewable Portfolio Standard (RPS) compliance markets.

In 2015, a new solar array came online at our Pepperidge Farm bakery in Bloomfield, Connecticut. In partnership with BNB Renewable Energy Holdings and SunPower Corp., the 1 megawatt solar array generates the equivalent of 15 percent of the bakery’s annual energy demand. The ground-mounted, fixed-tilt array comprises 2,720 high-efficiency SunPower solar panels and sits on five acres of land leased from Pepperidge Farm. In its first year, the array produced more than 1.7 million kilowatt-hours of electricity. The solar array in Bloomfield is the second largest to be installed at facilities owned by Campbell, and one of the very few solar arrays operating at a food manufacturing site in the industry. Pepperidge Farm has agreed to purchase the equivalent of 100 percent of the electricity produced by the system for 20 years.

Waste

Waste is generated across a business value chain: upstream in supplier facilities and processes, at the center in our manufacturing sites and downstream by our customers and consumers. Without efficient management practices in place, waste can have a direct impact on communities when it is discarded in landfills or leaks into waterways. Waste to landfill also generates GHG emissions that contribute to climate change.

Fortunately, solutions for reducing waste are very often wins for efficiency and cost as well. Recycling and reusing materials can be a source of revenue, while reducing cost to landfill. Campbell has a long tradition of reducing food waste to landfill through recycling, reuse, food donation and sending inedible food waste to feed animals at local farms — as outlined by the EPA Food Waste Hierarchy. To build on this work, Campbell began tracking and reporting all waste and disposal methods at our plant locations in 2008. We have a goal to achieve a recycle rate across all facilities of 95 percent by 2020. This year, we increased our recycle rate to 84 percent.

Water

Campbell relies on water across our value chain — in the fields that grow ingredients, in the plants where we manufacture our products and in some of our products as a primary ingredient. Maintaining a clean and sustainable supply of water is imperative to the future of both our company and the communities where we operate. We recognize the impacts of our business, and we strive to comply with all applicable legislative and regulatory requirements with respect to water quality and consumption. We also engage at vital points in our value chain to manage and reduce water consumption as outlined in our Global Water Policy.

Water scarcity is a particular business risk in certain locations where the cost of business could increase due to limited water supply. Furthermore, water scarcity could impact our ability to source ingredients or to manufacture products when an adequate supply of water is not available. We proactively manage water scarcity risks by working with growers and manufacturing personnel to track water usage and increase efficient water use.

Since 2008, Campbell has been tracking and publicly reporting on water usage in our manufacturing facilities, where we implement capital improvements focused on water reduction. Since 2008, our water usage has decreased by 24 percent per tonne of food produced.

As part of this effort and to better understand our risk at the local level, we continued to perform a site-by-site water scarcity mapping in 2015, cross-referencing the World Business Council for Sustainable Development’s Global Water Tool.

Packaging

Campbell’s global packaging team is committed to continuously improving our sustainable packaging footprint. Our packaging professionals are engaged in both short-term improvements and long-term innovation that reduce the environmental impact of our products. A global packaging sustainability program ensures that our packaging design teams are trained to incorporate environmental implications into their analysis from day one. Our three 2020 packaging goals include:

  • Eliminating 100 million pounds of packaging through both material selection and reduction;
  • Sourcing 100 percent of our packaging from sustainable materials, including renewable and recyclable materials and packaging made from recycled content; and
  • Engaging 100 percent of our packaging supply base proactively in the development of sustainable alternatives that are economically feasible, grounded in science and technology, and have sustainable end-of-life scenarios

To help us attain these 2020 packaging goals, Campbell follows five packaging principles that drive innovation:

  • Protect: Implement packaging that delivers the safest, highest-quality food, while ensuring consumer and brand protection.
  • Reduce: Continuously use packaging material and processes that utilize fewer resources while maintaining product quality and supply chain efficiency.
  • Recycle: Utilize recyclable and recycled content in packaging materials whenever possible.
  • Renew: Use renewable resources in packaging materials whenever safe and effective.
  • Partner: Work with suppliers to promote clean production technologies and best manufacturing practices.

In FY2015, packaging efforts for Americas Simple Meals and Beverages and Global Biscuits and Snacks eliminated 316,000 pounds of raw material from our manufacturing processes. This year’s reduction was largely driven by the reduction of steel used for certain soup products and the 3 percent material reduction in Goldfish packaging.

This year, we surpassed our goal by eliminating a cumulative amount of more than 112 million pounds of packaging materials since FY2009. In FY2016, we will be developing a new enterprise-wide sustainable packaging strategy.

Logistics & Transportation

Transportation and handling of our raw materials, ingredients and finished products from farm to factory to stores presents multiple opportunities to create efficiencies. Our goals for reducing our carbon footprint are focused on reductions of our Scope 3 GHG emissions through supply chain efficiencies, which are driven by our internal optimization efforts, as well as through our third-party warehousing and transportation partners. Key initiatives include:

  • Evaluating our manufacturing/sourcing footprint continually, to shorten the product sourcing distance from farm to table;
  • Optimizing our sourcing profile to reduce supply chain “touches,” thereby reducing the need for unnecessary product positioning;
  • Improving our storage and transportation “density,” which enables fewer miles traveled inside and outside our Distribution Centers (DCs);
  • Utilizing more environmentally friendly transportation methods, such as intermodal and compressed natural gas, to service our customers;
  • Aligning with carriers that are utilizing higher-efficiency power units, with improved miles per gallon;
  • Employing better DC “yard management” to reduce idle times and minimize unnecessary shuttle movements;
  • Ensuring that all core U.S. retail carriers are EPA SmartWay certified;
  • Improving performance on DC recycling efforts (air bags, plastic overwrap, corrugate, etc.);
  • Reducing the potential for landfill waste through product damage reduction initiatives; and
  • Making improvements in high-efficiency LED lighting (among others).