Huge green field with a cluster of small houses in the middle
Huge green field with a cluster of small houses in the middle

Photo courtesy of Fresh Del Monte

Hans Sauter is the Chief Sustainability Officer at Fresh Del Monte. He speaks to Trudy Ross about the company’s sustainability journey and the importance of creating a culture of respect for the environment

LUX: Could you provide an overview of the company’s sustainability journey and a few key milestones you’ve achieved in recent years?
Hans Sauter: Let me mention that I’m not just Chief Sustainability Officer but also senior vice president for Research and Development. That’s not just out of coincidence. We approach sustainability from a scientific and data-based point of view, not a marketing or sales perspective. I have been with the company for 35 years; I started at the farms doing agricultural research and worked my way up to corporate. I know our global footprint in great detail and have accompanied this process of incorporating sustainability into our operations all along.

About 30 years ago, we started designing our farms to make the best use of the soil, carving out the areas which would be best adapted to our own crops and then leaving those other areas to re-forest and create opportunities for conservation. Starting all the way from water conservation to erosion control, pollination, etc, our operations have transformed themselves over time into combined systems where we see nature and large-scale agriculture co-existing. That’s very exciting.

A green Del Monte farm in costa rica beneath a sunny sk

Photo courtesy of Fresh Del Monte

A few milestones: in 1998, we got our first ISO 14001 certification around sustainability systems. In 2010, we set our first global sustainability goal to reduce our consumption of key resources, like water and fuel, by 10%. In 2015, we got our first carbon neutral certification at one of our operations, specifically the banana farms in Costa Rica. We escalated that last year, to estimate our carbon footprint going all the way from the farm to the consumer. We established programs where we promote those efforts, such as the Del Monte Zero pineapple, where we have sequestered enough carbon through our own on-site forests to compensate for greenhouse gas emissions all through the supply chain up until the consumer’s table.

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LUX: Do you think it is important to engage with the consumer and make them aware of sustainability initiatives, or are you more focused on the problem itself?
HS: We started this journey so long ago that we initially attacked the problems where they were occurring. On our farms, being in tropical and rural areas which are normally the most vulnerable areas and communities, we saw a great need for action. We engaged ourselves in projects to collaborate with our neighbours and see how we could improve conditions there.

We now understand that the consumer needs to hear about those efforts. In the last five years we have been more vocal about those efforts, because we have truly strong programs to talk about. It’s not making a lot of noise about little things; we’re talking about legitimate programs. We have carved close to 30% of our land just for conservation, and that’s what nations are trying to accomplish now – we’ve done it already.

Jumble of pineapples

Photo by Justine Alipate

LUX: Do you have faith that the rest of the food industry is going to continue to engage with sustainability and make this a key focus, or do you worry that there is an element of greenwashing and shouting about sustainability efforts when there aren’t concrete initiatives to back them up?
HS: There’s a little bit of both. There has definitely been some greenwashing and more talking than acting; but on the other hand, I don’t think anything can stop this train. The current events are making us brutally aware that we need to act. I’m convinced that the only thing that is needed is to get to the tipping point. If you have strong leaders that move the needle, the rest of the industry will follow. Just look at the electric motor industry – who would have said we would be moving at the pace we are moving at today? I’m definitely optimistic about the food industry.

LUX: How would you describe Fresh Del Monte’s approach to responsible sourcing, and does this impact your supplier chain further down the line?
HS: That’s probably the most difficult point at this stage. All of us are struggling with scope 3, which is essentially our suppliers. Rapid engagement of that part of our supply chain is crucial and not as easy to move. One of the advantages we have as a company is that we grow close to 45% of what we sell, so we are heavily invested in farming and understand what farmers are going through. That gives us an opportunity to talk to them on a one-to-one basis with a hands-on approach. We collaborate with them and we share experiences.

I think our example will help us leverage some moral authority when it comes to protecting the environment because we have done it, and we continue to do it and invest in it. Definitely scope 3 will continue to be a more difficult area, particularly because margins in the food industry are small. Here the retailers could be very effective in moving that needle because they are the intermediaries between the grower and the final consumer, making sure that they also are a part of this shared responsibility.

LUX: What is the biggest challenge facing the food industry and the agriculture industry?
HS: I would say the biggest challenge is time. The climate is changing so fast and most of us don’t realise that the clock is ticking. We could run out of time to implement large-scale solutions that make a difference.

Vineyard in the setting sun

Photo by Sven Wilhem

I see no shortage of solutions available, but there needs to be a lot of resources invested in research, specifically for many crops in tropical regions where regenerative agriculture practices have not been developed. We are very optimistic about regenerative agriculture in temperate regions, but the rest of the world has not had that privilege and we need to invest in those areas.

LUX: How much of this responsibility for climate change lies with big corporations like Del Monte, and how much do you think lies with the consumer?
HS: We are all in it together. Consumers make the difference with their purchasing decisions. That’s one of the reasons we decided to launch the Del Monte Zero. It’s a small, boutique program. We wanted to make a statement by allowing the consumer to choose a climate-responsible product, so that we are all made aware of what we are going through.

Each of us, in large companies and small companies as well, each of us has a huge responsibility at this point. We are working with our communities and we are looking at our impact on a watershed level, rather than just ‘my farm’. Because it doesn’t matter how much I protect the forest that runs through the river that runs through my own farm, if I don’t bring all the neighbours to protect that watershed, that river will eventually dry. We need to act as communities.

LUX: Waste reduction is a very important issue taking place in the food industry. Has Fresh Del Monte implemented any strategies to minimise waste reduction, and have you seen any outcomes?
HS: This is a very exciting area of opportunity. It can bring more business to the food industry. We initially started investing in waste reduction a long time ago, in our pineapple operations, using food which could not go to market to produce concentrate and juice. With that kind of systematic investment we have reduced waste at the farm level, and almost 95% of our product is used and not wasted. We are working on solutions to compost and to work with cattle-growers.

Food is too valuable to throw away. There should never be a reason to send food to landfill. What we are doing now is taking that one step further and looking at our crop residues, because that’s also a huge area of opportunity and we’re working aggressively to develop composting solutions and also other opportunities. It’s just investing in research and time.

Orange tree branches against a blue sky

Photo by Dan Gold

Read more: Unilever’s Rebecca Marmot on the Sustainable Everyday

LUX: What sustainability developments are you most excited about at Fresh Del Monte?
HS: I would say the most exciting thing which I have seen over the course of 35 years is the development of a culture of respect for the environment. No systems, no programs beat culture. If your team members have a culture of respect and admiration for the planet and your community, everything comes out of there and you have success with your systems and your programs.

We have seen engagement all the way from the farm workers, who have been sharing pictures of the biodiversity that they see while they are doing their field work. The excitement and the passion that we see is huge. When your own farm workers are excited and are taking pictures of biodiversity while they’re working, you have made an impact not only in your farm but also in the community. That multiplies by four every effort in education you have brought in.

LUX: How do you envision sustainable practices in the food industry in ten years?
HS: I envision it having huge contributions from new bio-science discoveries. There are companies which are working on deploying microbes that can fix nitrogen so that you don’t have to apply so much synthetic fertiliser. Synthetic nitrogen is one of the biggest challenges we have in agriculture as an emitter of greenhouse gas emissions. That will definitely make a big difference in the future.

Find out more: freshdelmonte.com

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two women sitting on a panel

Heather Clancy and Sanda Ojiambo, CEO and Executive Director, United Nations Global Compact © GreenBiz Group/Louis Bryant III

Is there a one size fits all when it comes to corporate climate action? No matter how big a business is, says Heather Clancy, one thing is for certain: inaction is no longer an option. Clancy is Vice President and Editorial Director of GreenBiz, the media company working to accelerate the just transition to a clean economy. She tells LUX why companies need to work harder to embed environmental justice into their corporate sustainability strategy, and explains how climate fintech may just be key to the green transition
A woman with grey hair wearing a green jacket

Heather Clancy ©GreenBiz Group/Louis Bryant III

LUX: Is there a one size fits all when it comes to corporate climate action?
Heather Clancy: The way a company prioritises is very focused on their individual business. The supply chain of one company could be totally different to that of another. US tech companies, for example, have done a lot on renewable energy, but should be doing more on how they treat and engage with their employees on various issues. Each company must look at what they touch and then make the decisions about which levers to push and pull most directly. The one thing they must do, however, is act. They can’t sit around anymore, no matter how big or small they are.

LUX: How should companies be balancing the ‘E’ and ‘S’ of ESG?
Heather Clancy: Corporations are not spending enough time thinking about how environmental justice is embedded into their corporate sustainability strategies. The pandemic has prompted a lot of soul-searching when it comes to where companies are doing business, but there is still a huge disconnect between the company’s corporate perceptions of what environmental justice means and how they act as a business. There is so much attention being put into making sure workforces reflect the diversity of the community –which is great – but companies need to get a lot more thoughtful about how they engage with the individuals and communities with whom they engage.

For example, one of the biggest blockers to the clean energy transition right now is the supply of materials like lithium, cobalt, and nickel. The necessity of these materials – which are used for wind turbines, electric vehicles, and batteries – has prompted a large increase in mining activities around the world, but there has not been enough attention paid to where that land is. A lot of it sits on indigenous territories, and these communities are not being consulted or involved in the plans, or economically compensated if that’s what is required.

Now that we have this supply chain rethink happening, it would be incumbent upon corporations to look closely at where they’re siting their new manufacturing city facilities if they’re going to move them. This means actually including communities in those plans –helping them understand what the plan is and asking them what makes sense.

rows of solar panels

Accountability of corporations is crucial for the green transition. Image courtesy of Andreas Gucklhorn

LUX: Are there enough measurable standards for corporations to be measured by?
Heather Clancy: If you ask them, there are too many standards! What is missing is a push for accountability, especially in the United States. The markets are motivated by these earnings reports that we get on a quarterly basis, but there is no equivalent for ESG measures. I do believe that this will be changing, though. Probably the most important prompter for this has been the Taskforce on Climate-Related Financial Disclosures (TCFD), whose recommendations made a tipping point happen as far as how companies talk about what they’re doing and how they are being held accountable for that. But now things are in place, we need to get some agreement and coalescence around certain of these things.

LUX: What role can early-stage climate tech play in decarbonisation?
Heather Clancy: Small, innovative companies have a real opportunity to innovate and become the new suppliers for larger companies – for example by producing alternative materials like mushroom-based packaging to replace plastic or Styrofoam. It is not coincidental that there are so many corporate venture funds now focused on climate technologies, because these corporations are going to benefit from that innovation when the company goes public down the line.

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A great example is the Amazon-Rivian relationship. Rivian was a vaguely unknown electric van maker, which got a hundred-thousand-unit order from Amazon and has now gone on to become public. There is a lot of shakiness in the market right now with some of these suppliers, but that’s fundamental to business. It’s mainly a great innovation opportunity.

LUX: Do you think it’s correct to talk about de-carbonisation and opportunities in climate tech as being ‘opportunities’, or are they still challenges?
Heather Clancy: Look at Allbirds. They had some shakiness with their ESG IPO, but their entire company was created with the idea of using materials in a different way. One of the biggest problems with athletic shoes is the soles, so they worked to create a new type of sole with a new material which has a lower carbon footprint than other sneaker soles. Instead of choosing to make that sole their own proprietary invention, they opened the technology up to other organisations and helped other companies to start using it. As other companies start to use this technology, the costs will come down and it will be cheaper for them to use it as well. That is a company whose entire business model is framed around this.

Two women speaking to each other sitting on chairs next to each other on a panel

Heather Clancy and Hana Kajimura, Head of Sustainability, Allbirds © GreenBiz Group/Louis Bryant III

LUX: What else is exciting you in the climate tech sector at the moment?
Heather Clancy: I am particularly interested in nature-based carbon capture and sequestration technologies. There is an organisation called Project Vesta that’s using nature-based approaches in this way. There’s a big debate about whether we should be investing in those things, because it takes money away from these newer areas, but I think we need to remove the carbon that’s there.

LUX: What role can fintech play in the green transition?
Heather Clancy: The digitisation of sustainability is really important, because it’s becoming part of the financial infrastructure of the companies themselves. Software innovations help companies better understand their climate risks, have a truer accounting of the carbon footprint of their supply chain operations, and to understand whether their carbon offset has the value they think it has. These tools also help people make investments in the other climate technologies.

LUX: What is the biggest barrier to scaling climate tech?
Heather Clancy: Politics. Climate is such a partisan issue in many areas of the world. It has become so easy for one side to weaponise the community and say, ‘look at these renewable energy advocates, they’re making your energy costs go up’. That’s been very damaging in terms of the whole concept.

Beyond that, though, is policy. If there’s one thing that we really are lacking from corporations, it is the voice and end policy support. There are so many policies in place that need to be changed, but there is not enough happening at the federal, state or local levels to help put the policies in place that will make this transition happen more quickly.

plastic bottles compacted in bags

Heather Clancy explains the battle for companies desiring to create and bring in new greener technologies but not wanted to create waste by dumping the old materials. Image courtesy of Nick Fewings

LUX: Should we prioritise de-carbonising existing infrastructure or starting from scratch with new green technologies?
Heather Clancy: I’ve been thinking a lot about net zero buildings and how difficult it is to go in and retrofit a building to become a better performing building. There are incentives that exist which make it much easier to knock the thing down and to build a new one. That’s just a huge waste: why aren’t we reusing those materials? But the policies and the laws make it harder to do it any other way.

The other problem with giving credit for renewal projects is that it caters to the people that have money already. If you are a small organisation and don’t have the revenue, you can’t actually take advantage of some of these incentives currently because you can’t afford to invest in them. This is true of the way some of the clean energy incentives are written in the United States. That doesn’t make economic sense.

Read more: Product designer Tord Boontje on sustainable materials

LUX: Are corporations, consumers, or legislation responsible for leading the green transition?
Heather Clancy: Extended producer responsibilities is the buzzword here. It’s important that corporations be more responsible, and they have to be using their voices as well.

LUX: What should the wealthy be doing?
Heather Clancy: They should model better behaviour, and they also need to put their money where it counts. What Bill Gates with his Breakthrough Energy coalition is extraordinary, and seems to me to be an important model. Likewise, Mackenzie Scott and Laurene Powell Jobs have put money in some extraordinarily unusual places by investing in historically black colleges and communities that don’t usually get the money. They’re doing it quietly, and they’re putting their money to work.

It’s also time for the wealthy to help small businesses get on the bandwagon in terms of ESG – to help them with energy efficiency, with their waste and manufacturing processes. Buying from these companies will enable them to make the shift to greener practices.

Find out more: greenbiz.com

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