Public education, supply chain management and long-term value were on the agenda for companies at the Rainforest Alliance 20th Anniversary Gala.

By Margo Alderton and Danielle Lee

Nonprofit international conservation organization the Rainforest Alliance celebrated its 20th anniversary on May 16, with an awards gala honoring companies and individuals that have integrated environmental and social sustainability into their businesses. From the early integration of eight-year-old natural drink start-up Innocent to the long-standing initiatives of Chiquita, sustainability was the topic of the panel discussion of the winners and co-chairs (see sidebar). The panelists—who together represented the agriculture, food, real estate, forest products and tourism industries—shared some of the trends, challenges and lessons they have learned in integrating sustainability.

Increasing Awareness

There was common consent that the demand for sustainable products (and information on sustainability) is greater in Europe than the United States. Co-founder of London-based beverage company Innocent Richard Reed cited the positive local media support as integral to their relatively young venture, and Annica Johansson, Associate Director of Commodity Sustainability Programs at Kraft Foods agreed that Europe was “ahead of the curve” in sustainability. Gerhard Berssenbruegge, CEO of Nestlé Nespresso noted that there is also an uptick in interest in Japan and Australia, but raising awareness is still a challenge. Caribou Coffee’s market research revealed that the sustainability knowledge level of gourmet coffee consumers was low, with the 18- to 24-year-old demographic being the most aware, according to Kathy Hollenhorst, Senior Vice President of Marketing.

So how are these thought leaders approaching the issue? “Sustainability is a complex but important message that’s hard to deliver in one sentence” said Johansson of Kraft, so partnering with organizations like Rainforest Alliance is important to communications. Kraft and McDonald’s—who have joined forces to offer coffee that has been sourced from Rainforest Certified farms in McDonald’s throughout the United Kingdom—are working jointly to educate consumers. Similarly, Hollenhorst of Caribou noted that explaining what initiatives such as Fair Trade and partnerships with Rainforest Alliance entail is also important when reaching out to consumers. Innocent has found success in working with digital media, trade publications and retailers to help get across its message of sustainability.

Jorge Arrieta, General Manager of Lapa Ríos, an eco-lodge and nature preserve, also noted that education was a challenge not only for consumers, but also within an organization. Educating their staff about new products and initiatives and translating the benefits of sustainability was an important part of his organization’s process toward receiving the highest sustainability rating from
the Costa Rican Tourism Institute’s Certificate for Sustainable Tourism.

Pushing Through the Supply Chain

Another challenge of note is integrating sustainability through the supply chain. Not only is there a lack of education at the supply-chain level, but, for the co-founders of Innocent, there was also a lack of supply. As a start up, Innocent grew more quickly than its suppliers, and although the beverage company is focused on using, integrating and delivering sustainable products “the world isn’t responding as quickly,” said Reed.

Panel members are addressing this challenge in a number of ways. Chiquita and Nespresso both noted that they are willing to pay a premium for certified, sustainable products. Caribou has also focused on community engagement, creating a “model farm” in Guatemela, which Senior Director of Coffee and Tea Chad Trewick describes as “infectious” for the local inhabitants on a social as well as economic level. And Innocent has admitted that it sometimes uses both “the carrot and the stick”: incentivizing suppliers who meet their CO2 targets, and requiring that others, such as advertising agencies bidding for an account, commit to renewable energy and recycling initiatives if they want Innocent’s business.

Despite the challenges of increasing awareness and supply, which the companies hope Rainforest Alliance certifications—seals representing compliance with strict guidelines protecting the environment, wildlife, workers and local communities—will help solve, the panelists were generally optimistic. Moves, such as the one noted by Kraft to bring specially located organic products into the general aisles of supermarkets, indicate a possible mainstreaming of sustainable products. While the companies honored aspire to “leave things better than they find them” as Innocent said, the bottom line is “you can’t have a successful business on a failed society.”

Rainforest Alliance 2007 Honorees

Corporate Sustainable Standard-Setters
Pioneering companies that have collaborated with the Rainforest Alliance and exhibited outstanding leadership in efforts to promote sustainability:

• Asociación de Comunidades
• Forestales de Petén
• Lapa Ríos
• Masisa
• Potlatch Corporation

Corporate Green Globe Awardees
Businesses that demonstrate an extra-ordinary commitment to furthering
sustainability:

• Caribou Coffee Company, Inc.
• innocent
• Nestlé Nespresso SA

Lifetime Achievement Awardee

• R.E. Turner

Co-Chairs

• Chiquita Brands International, Inc.
• Kraft Foods Inc.
• UCC Ueshima Coffee Company, LTD
• David Refkin, Time Inc.

Underwriter

• Gibson Foundation