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Our Grocery businesses have strong connections to the global farming sector, sourcing products from crops grown on farms, tea gardens, and smallholdings around the world. The diverse approaches and solutions they pursue reflect the structure of the supply chains and the nature of their operations in that context.
Our Grocery businesses are adapting to the evolving regulatory ESG landscape by expanding their approach to managing environmental and social risks, opportunities and impacts within their agricultural supply chains. In the past, they focused on a few targeted initiatives, but now they are taking a broader approach to address a wider range of issues. Recognising the need for collaboration across the industry, they are working with civil society partners and other industry players to address supply chain issues.
To help address environmental risks such as deforestation and biodiversity loss, our Grocery businesses are focusing on specific projects within their supply chains, especially for those products particularly impacted by climate change. They are also prioritising water reduction and yield increase for commodities like rice. Climate change is particularly impactful for the gardens, farms and people that grow tea and herbs in the supply chains across the division, as extreme weather and natural disasters continue to affect the growth of healthy crops and the livelihoods of the communities that rely on them.
Several businesses leverage third-party certifications from organisations such as the Rainforest Alliance, Fairtrade, and the Roundtable for Sustainable Palm Oil (RSPO). For example, these certifications are a minimum requirement for Twinings’ suppliers of key raw materials such as tea and palm oil. Twinings is also actively involved in the International Cocoa Initiative, the World Cocoa Foundation, the Ethical Tea Partnership (ETP), the Sustainable Spices Initiative and the RSPO.
How our Grocery businesses approach a range of commodities is presented below.
Traditional rice-growing methods are water-intensive and release a significant amount of greenhouse gases into the atmosphere. Rice cultivation is estimated to be responsible for 8% of the world’s methane emissions1. Westmill Foods, a Grocery Group business in the UK and a leading supplier of food products to the Indian, Chinese and Thai foodservice sectors, is committed to promoting the standards of the Sustainable Rice Platform (SRP).
As a founding member of the SRP, a multi-stakeholder partnership set up by the United Nations Environment Programme, Westmill Foods supports initiatives to promote climate-smart agriculture, protect biodiversity, fight climate change and support smallholder farmers. By adopting SRP standards, the business is contributing to the production of high-quality rice while minimising environmental impact.
In Pakistan, where Westmill Foods sources basmati rice, the business is now in the sixth year of its collaborative project with Galaxy Rice, a key supplier in Pakistan, to equip them with the tools and techniques needed to train their farmers on sustainable farming methods in line with the SRP standard.
This programme aims to benefit both farmers and their communities and covers several topics such as water management, pesticide management and agribusiness techniques. In particular, it covers the use of water-saving technologies, including land laser levelling and alternate wetting and drying (AWD) techniques which also help to reduce GHG emissions.
As of May 2023, the project had included 1,000 farmers across 75km of land. Since the programme started in 2018, farmers within the programme have seen a 48% reduction in GHG emissions, a 31% reduction in water usage, a 13% increase in net yield and a 21% increase in net income compared to a set of non-SRP farmers.
Westmill Foods has also completed the first year of a similar project working with its supplier Olam Agri to train smallholder Thai Hom Mali rice farmers located in Ubon Ratchathani, Thailand, on the SRP standards. In 2023, this project supported 600 farmers, with plans to increase by 200 farmers per year for the next three years. During the first year the programme achieved a 13% reduction in GHG emissions, a 56% reduction in fertiliser usage and a 10% increase in net income for farmers.
Twinings Ovaltine sources approximately 13,000 tonnes of tea and over 180 herbal raw materials, including spices. It does not own any tea or herb estates, farms or gardens and is selective about who it sources from, only purchasing tea from sources certified to internationally recognised standards, such as the Rainforest Alliance and Fairtrade International. It sources all its tea from seven regions – China, Kenya, India, Sri Lanka, Argentina, Indonesia and Japan.
Its tea supply chain includes approximately 120,000 workers and 110,000 farmers. Central to Twinings' responsible sourcing programme is the ‘Sourced with Care’ initiative, which aims to drive positive change through empowering women, supporting incomes and improving living standards within these communities. Through this initiative, Twinings recognises and supports the vital contributions of people and communities in tea and herb production. The business also collaborates with key partners in the tea sector, such as the Ethical Tea Partnership (ETP) and IDH - the Sustainable Trade Initiative.
Twinings publishes a sourcing map on its website, Sourcing – Sourced With Care, detailing the tea gardens it buys from as well as the countries it sources its key herbs from, as part of its efforts to drive collaboration and greater transparency of reporting.
In 2024, it achieved 92% traceability by volume (back to farm or producer community) for its 17 key herbs2 and spices and is working with suppliers to ensure full traceability of its key herbs by 2025.
Twinings, AB World Foods and Westmill are all members of the Sustainable Spice Initiative (SSI). AB World Foods and Westmill Foods are collectively working towards the goal of sourcing 25% of spices from SSI-certified sources in at least their top three product categories among spices, herbs and dehydrated vegetables by 2025, and 50% by 2030.
Westmill Foods is making progress towards these targets. During 2023/24, it sourced 47% of its top three spices (turmeric, chilli and cumin) with SSI certification. It also set a new target to reach SSI certification for 10% of the paprika it sources and in 2023/24 it has achieved 14%. AB World Foods is making similar progress towards these targets and in 2023/24 sourced 34% of its top three products (coriander, paprika and kibbled onions) from SSI-certified sources.
In addition, since 2019, AB World Foods has been working on Project SPICE with partner NGOs Mercy Corps (an international NGO working globally to help people affected by crisis, disaster, poverty and climate change) and GRAVIS (a community development organisation in Rajasthan, India) to support rural cumin and coriander farming communities in Rajasthan. The project has delivered agronomy and business skills training to over 1,000 farmers.
Our Grocery businesses buy 5.9% of the UK milling wheat crop which is a core ingredient for Allied Mills, Allied Bakeries, Jordans Dorset Ryvita (JDR), Silver Spoon and Westmill Foods. JDR are also buyers of UK oats and rye.
Jordans Cereals, a premium cereal brand within our Grocery Group, sources all of its grains through the Jordans Farm Partnership, which covers its branded sales volume in the UK and France. This collaboration pays a premium to the farmers involved for their oats, wheat and barley in exchange for them managing at least 10% of their land for the benefit of wildlife. Since 1985, Jordans Cereals has worked with these farmers to promote biodiversity on their land.
Allied Mills ensures all the UK wheat it sources is Red Tractor / TASCC (Trade Assurance Scheme for Combinable Crops) assured. The business is piloting its Wheat Sustainability Supply Project, where select farmers adopt techniques that aim to improve soil health and support wildlife.
Grocery Group produces products primarily derived from ingredients of plant origin, except for a small quantity of dairy products, eggs and honey. It believes in the importance of high animal health and welfare standards within agricultural systems and supports the principles in ABF’s Animal Welfare Position Statement.
Grocery Group businesses are working towards sourcing 100% cage-free eggs by 2025. While Westmill Foods and Silver Spoon have already achieved this, Allied Bakeries will transition its branded lines to 100% cage-free eggs from September 2024.
George Weston Foods purchases ingredients derived from animals, including eggs, dairy products, pork and other meat. The business believes in maintaining and improving high animal welfare and meeting relevant animal welfare standards, including the internationally recognised Five Domains. George Weston Foods follows groupwide ABF commitments to purchase 100% of cage-free eggs by 2025. The business has already started the transition process and is on track to meet this commitment. Tip Top in New Zealand has already achieved the goal.
George Weston Foods-owned piggeries in Australia have been sow stall-free since 2010, with directly owned and supplier owned piggeries in Australia certified by the Australian Pork Industry Quality Assurance (APIQ) programme. For pork sourced by George Weston Foods from overseas, suppliers in Europe and North America are expected to undertake continuous improvement in welfare standards.
1. World Bank Group, World Bank Steps Up Efforts to Address Methane Emissions, December 2023
2. These herbs represent 85% of Twinings’ herb volume and include: peppermint, camomile, ginger, hibiscus, orange, lemongrass, rosehip, lemon peel, spearmint, blackberry leaves, apple, liquorice, cinnamon, rooibos, turmeric, cardamom and vanilla.
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Twinings sources the vast majority of its cardamom from Guatemala, where it has partnered with Mercy Corps, an international NGO working globally to help people affected by crisis, disaster, poverty and climate change. Together, they are working to improve the livelihoods of cardamom farmers, reducing the risk of deforestation, introducing crop diversification, improved pest management, and helping to improve biodiversity.
Cardamom needs shade to grow. By planting commercial trees such as the fast-growing native Madre de Cacao, Cedar, and Mahogany, the plants receive the shade they need, and farmers have an additional source of income over time. Farmers are also combining their crops with cinnamon, cloves and black pepper, helping them to diversify their outputs and improve their income.
A critical part of the initiative involves improving the cardamom drying process. Traditionally, farmers used wood-based fires, contributing to deforestation. The programme has facilitated a switch to propane gas dryers, which not only significantly reduces the need for wood but also improves the quality of the cardamom by providing a more consistent drying temperature. Through this partnership, three gas dryers have been built, capable of drying approximately 200 tonnes of cardamom and saving 225 metres of firewood annually, equivalent to preserving around 1.5 hectares of forest.
Twinings’ funding enabled Mercy Corp to provide technical support for the implementation of agroforestry systems on 145 plots and the creation of 10 community plant nurseries, which cultivate the seedlings needed to support the agroforestry systems. Since 2020, when the programme started, 862 cardamom farmers have been trained in agroforestry techniques.
In Kenya, in 2023, Twinings partnered with the Farmer Voice Radio NGO to provide training for Kenyan smallholder tea farmers, with a particular focus on women. This initiative is funded by the UK Foreign, Commonwealth & Development Office’s Work and Opportunity for Women programme and aims to reach at least 50,000 farmers.
Smallholder farmers, especially women, often face significant barriers to accessing training due to work and family responsibilities. This programme has funded the development of a series of training programmes designed by and for women, which are broadcast, in local dialects, over the radio twice a week and then uploaded to YouTube, which means farmers can listen at a time that suits them and their schedule.
The series focuses on training farmers on more environmentally friendly farming practices, including land management techniques, such as reducing the amount of tillage, appropriate use of chemical pesticides and fertilisers, and switching to natural fertilisers where possible.
The Jordans Farm Partnership is a collaboration with Wildlife Trust and LEAF (Linking Environment and Farming). It has now been in place for nine years.
All the farms in the Partnership are required to meet the LEAF Marque environmental sustainability standard, which includes independent audits and certification against a range of more sustainable farm management practices, including biodiversity habitat alignment according to the post-2020 biodiversity framework[link]. Additionally, farmers work directly with dedicated farm advisers from their local Wildlife Trust in the UK to create and manage a range of specific habitats to sustain wildlife biodiversity on their farms, including native wildflowers and seed-bearing plants to provide food for insects and birds.
The Jordans Farm Partnership pays farmers a premium for their grain in exchange for them managing at least 10% of their land for the benefit of wildlife. The average proportion of land manged for the benefit of wildlife in 2022/23 was 26% across the 15,900 hectares of farmland managed under the Partnership.
In 2023, farmers growing oats for Jordans Cereals provided over 4,200 hectares for wildlife, including barn owls, brown hares, corn buntings and vital pollinating insects like bees. Wild places they have created or maintained include woodlands, ponds, hedgerows and waterways.
Since 2019, AB World Foods has been working on Project SPICE with partner NGOs Mercy Corps and GRAVIS, a community development organisation in Rajasthan, India to support rural cumin and coriander farming communities in Rajasthan, India. The project delivered agronomy and business skills training to over 1,000 farmers and supported women within the community, raising awareness of the importance of girls’ education.
Since January 2023, Project SPICE II has expanded its partnership with GRAVIS to further support the farming communities with the additional focus on building climate resilience. In its first year the project focused on improving water management practices and increasing farmer income.
Key achievements include:
Allied Mills is in the final year of a Wheat Sustainability Supply Project with a number of its farmers. This involves the farmers adopting agricultural techniques that aim to improve soil quality and health and include land practices that support wildlife. These farmers receive a premium price in return.
The project was developed in partnership with Frontier Agriculture, a joint venture business within the ABF Group. The project stipulates crop rotation and minimal tillage to build up organic matter within the soil and increase fertility.
The business is working with a specialist consultancy to undertake satellite image analysis of the pilot programme to establish the impact of the management trials on soil carbon sequestration.
Allied Mills has agreed to extend the trial for another year with a view to continuing until the 2027/28 harvest. It is envisaged that 10,000 metric tonnes per year of wheat under the project protocol will be available for milling. Early established data suggests that yields have exceeded the regional averages measured by the UK Department for Environment Food and Rural Affairs. Over four years, it has improved regional average yields by 12%.