Risks and opportunities [GRI 103-1]
- The economic and social impact on the communities throughout the strategic region puts the sourcing operation, human capital availability and inclusion-driven sales at risk.
- The problems associated with food security and the concern about the lack of food will broaden the search for new income creation alternatives, possibly increasing the informal economy rates in the regions and the health-related risks associated with malnutrition.
- A possible negative impact on the sustainability of the healthcare system and on people’s capacity to develop their potential to generate progress in the countries and prevent the economy from weakening.
- Food loss and waste continue being widespread problems around the world. According to data gathered by the Food and Agriculture Organization of the United Nations (FAO), just in Latin America, 127 million tons of food are thrown to the garbage, while more than 42 million people starve in the region.
- Continue implementing actions focused on addressing the main variables associated with the production of healthy food products for the families that have suffered the impact of the socioeconomic effects of poverty, which have also been exacerbated by the COVID-19 pandemic.
- Transforming the operation, creating new processes, adapting the infrastructure, including the participation of qualified labor, and raising awareness and promoting adequate habits among the employees who participate in the process.
- Contributing to the quality of life of stakeholders living in poverty and reducing the environmental impact in the region where Grupo Nutresa operates.
Future outlook and goals for 2030
- Continue making progress on the processes focused on awareness-raising, training, measurement and execution of initiatives for the reduction of food loss and waste across its entire chain. The goal set for 2030 consists in reducing food waste by 50% and food loss by 30%.
- Fulfill year-on-year goals through the consolidation of teams with sustainability-focused capabilities.
- Develop new products, technologies and strategies that produce a positive impact on the environment, society and economy.
- Expand the construction of food systems with sustainable practices and initiatives for the promotion of healthy lifestyles.
- Include an overarching strategy for mitigating food loss and waste and utilizing food to the maximum possible extent in the agricultural sector, which is the chain link that, for example in Colombia, accounts for 40% of the total food loss and waste.
Success stories and acknowledgments [GRI 103-3]
- Expansion of the Germinar program with the Kibo brand in the Colombian state of Antioquia
One of the sustainability features of the Kibo brand is its associated sustainable sourcing process. Its focal point is to work with low-income communities in the first link of the value chain, particularly with the development of capabilities for the production of food for the families’ own consumption, thus establishing sustainable practices focused on the food security of the territories. Thus, the program expanded its food security endeavor by building 25 new systems for coffee-growing families, developing the balanced and sustainable nutrition capabilities of 50 families, and ensuring the implementation of leading food management practices.
- Leadership role in the Global Compact’s Multi-Sector Work Group focused on SDG2 –Zero Hunger–
With the support of the FAO and the participation of the main pacesetters from the public, private, academic and civil sectors, Grupo Nutresa made progress in the consolidation of initiatives that make a positive contribution to this SDG.
Risk and crisis management
For Grupo Nutresa, 2020 became the perfect time frame for putting the capabilities of its professionals at the service of the communities. The Organization’s teams deployed innovative strategies for the production, recovery and mitigation of food loss and waste, ensuring the development of key capabilities for the prosperity of the territories where the Company operates. By means of the food security program known as Germinar, Grupo Nutresa consolidated alliances with universities, food banks, foundations and other agents from the ecosystem, which expanded the corporate purpose the Organization deploys in the strategic region through Fundación Nutresa.
This program is part of the Organization’s Healthy Lifestyles strategy, which includes the participation of both rural and urban communities. The following were the consolidated results attained in 2020:
The Organization also built 25 new healthy nourishment systems in the rural area La Arboleda, in the municipality of Ciudad Bolívar, in the Colombian state of Antioquia. This action supported the implementation of a training initiative designed jointly by the CES University’s School of Nutrition and Dietetics and Grupo Nutresa’s brand Kibo.
This initiative benefited 50 families from the area by taking them through the process of getting certified as food handlers, which will allow them to secure new sources of income, thus enabling them to achieve further progress and development. Additionally, 7 internet connection spots were installed in the area with the aim of guaranteeing the access to the online meetings for the communities. The following were some of the topics addressed in the activities:
Food aid packages for addressing the emergency caused by the COVID-19 pandemic
The circumstances of volatility and uncertainty emerging from the COVID-19 pandemic have driven the Organization to formulate strategies that enable it to address the risks such situation entails. One of said strategies consisted in collaborating with the solution: this means to use as starting point the purpose of building a better world where development benefits everyone. Consequently, the commitment was centered on preserving jobs and cooperating with public and private partners to contribute to the protection of the most vulnerable populations based on the Organization’s capabilities, agility and action capabilities. In this regard, the following are some of the actions carried out by Grupo Nutresa:
In the strategic region
- More than 295.253 food packages delivered in Colombia, Chile, Costa Rica, Nicaragua, Guatemala, El Salvador and Mexico for the benefit of more than 183.232 families.
- More than 2,050 volunteers from all of Grupo Nutresa’s Businesses donated more than 5.696 food packages to supplement the food aids delivered by the Organization.
Development of a supportive plan focused on more than 8.608 senior citizens in Chile and Mexico. Based on this action, Grupo Nutresa delivered more than 300 tons of food products to the senior citizens’ homes with the support of local allies in order to fight the growing food insecurity. Likewise, the Organization supported potluck actions and soup kitchens.
In Central America
- 25.914 food packages were delivered though food banks and other social entities, prioritizing senior citizens and head-of-household mothers.
- The Biscuits Business participated in the “Proactive Testing” in Costa Rica, which was convened by Alianza Empresarial para el Desarrollo (Business Alliance for Development, AED in Spanish), with the purpose of increasing the capacity, scope and geographic coverage of the proactive COVID-19 tests done in the region.
- Contribution of resources to the work carried out by the local government in Panama to increase the capacity of the ICUs in multiple hospitals. This initiative was deployed jointly with Banistmo, Argos, Celsia and Sura with the purpose of broadening the early identification of the patients with the highest probability of facing health complications so that they can be timely treated and preventing them from needing to seek hospital assistance.
- 249.337 food packages delivered jointly with partners such as local governments, the Colombian Food Bank Association (ABACO) and the Sura, Bancolombia and Argos Foundations to address the socioeconomic emergency caused by the mandatory isolation measures.
- Offering the 3D printers of all Grupo Nutresa companies for manufacturing protective face shields for hospital personnel.
- Economic donation for increasing the capacity of the intensive care units and delivery of food to the medical staff at hospitals by means of the El Corral food truck.
Food aid packages for neighboring communities and the value chain
With the contributions made by volunteers and allies, COP 652 million were allocated to the execution of the Germinar Program, thus expanding the projected construction of new healthy nourishment systems in Colombia. Additionally, 1.800 families will be part of the first stage of the program in the Colombian states of Antioquia and Valle del Cauca thanks to the participation of allies such as Proantioquia, the Cartago Food Bank, the Food Bank Association (ABACO), Agricapital and the Saciar, Sura, Salvaterra and Bancolombia Foundations.
Food bank professionalization process
Aware of the importance of assessing the impact of food loss and waste, the Company works on cooperating with its employees to reduce food loss both within the Organization and globally. For this reason, Grupo Nutresa has:
- Organized and held five online workshops about max-utilization cooking, as part of the Sustainability Workday, with the objective of raising awareness about this issue and providing tools to mitigate the waste at multiple instances. This initiative benefited more than 1.600 employees in Colombia, Chile and Peru.
- Redefinition of the model for consolidating and measuring food loss and waste. Some of the activities carried out by the Company were the following: food classification by product category with the purpose of identifying the ones that are lost/wasted the most; follow-up on the commitments and goals in a more agile manner; creation of a consolidation system for the monthly data that allows all the operations to monitor the fulfillment of their activities; external audits; and development of an intranet for sharing the initiatives and achievements related to the goals of each one of the Businesses.
The Businesses also established the baseline they will use to monitor the progress in the reduction of food loss and waste.
The accounting exercise allowed finding out that the products that are lost or wasted the most are biscuits and the dough of sweet and salty crackers, mushrooms, in-process meat products, cold cuts products and deli meats, pasta products, chocolate, snacks and instant beverages. From such products, 86,4% are used as animal feed, 9,3% undergo aerobic processes, and 4,3% end up at landfills and other final disposition destinations. Additionally, being committed to the scope of the goal set for 2030 of reducing food waste by 50% and food loss by 30%, the Grupo Nutresa implemented improvements strategies in the product manufacturing and distribution processes. The following are some examples of such strategies:
- In the processes of Leños & Carbón’s chain, the Retail Food Business made progress in reducing the waste of food per consumer plate, going from four to three garnish pieces served in the restaurants located in food courts. Thus, the amount of garnish pieces was standardized for the entire chain and the waste of food that is left on the plates has been reduced.
- Tresmontes Lucchetti installed four recuperators of packaged instant cold beverage product that allowed reducing the quantity of powdered product used by 6 tons per year, which are equivalent to more than COP 400 million.
- The Cold Cuts Business solved the obstruction issues presented by the packaging machine in the wiener production line. This action allowed the Business to eliminate 97% of the blockages that occur at such specific point, thus reducing food loss by 34 tons.