Dairy companies know they need to be more sustainable. Cattle farming is one of the biggest contributors to global methane emissions, a potent greenhouse gas. The industry also faces environmental concerns such as soil and biodiversity degradation, as well as issues regarding animal welfare and rural economies.
In our latest report we assess 10 of the world’s dairy companies to find out if they have a good sustainability story to tell — and who tells it best.
We found most companies have a good story to tell, but the level of information and data they publish varies dramatically. Certain issues such as soil health and biodiversity are frequently overlooked. The majority could be telling their sustainability story better.
There are three clear leaders, each scoring above 20/25. All three have comprehensive sustainability strategies that they report on in detail, backed by extensive datasets. They communicate their strategies and approaches clearly on multiple channels, using videos and infographics to explain complex topics in a simple way.
Who we assessed:
We assessed 10 members of the Dairy Sustainability Framework (DSF) developed by the Global Dairy Agenda for Action (GDAA) to align the global dairy sector on its path to sustainability. It represents 31% of global milk production and 52% of the global formal milk market according to its latest report. Implementing members are committed to tackling sustainability issues, so should have good stories to tell.
We assessed:
Agropur
Arla Foods
Dairy Farmers of America
Danone
Fonterra
FrieslandCampina
Nestlé
Saputo
Savencia
Schreiber Foods
What we did:
We analysed and scored the sustainability content on each company website and sustainability report, across seven categories:
Strategy — how comprehensive is the sustainability strategy?
Reporting — do they report progress against the strategy?
Credibility — is their reporting transparent and backed by sound data?
Messaging — are the sustainability messages clear and concise?
Liveliness — how regularly do they communicate on sustainability?
Multimedia — are visual elements like infographics and videos used?
Social media — how regular are posts on LinkedIn and Instagram, at what level of engagement?
Want to know which companies performed best? Download the full report here.
Why we published this report:
Context was founded 26 years ago to help advise clients on strategic sustainability issues and craft compelling communications that cut through the “blah, blah, blah”. We share our analysis with all companies assessed for our reports, but only publish the five top performers and examples of best practice among the group. We regularly publish industry reports and blogs on a range of current sustainability topics. More here.
Want to know your bioplastics from your blockchain? Check out the fourth edition of our Little Book: (Nearly) everything you always wanted to know about corporate sustainability.
Including:
a brief history of corporate sustainability
five reasons why sustainability makes good business sense
300+ sustainability terms and definitions
how we can support your company’s sustainability strategy, reporting and communications
Every year 200,000 tonnes of tiny particles shed by tires are flushed into the sea, says a new study. This is just one of the many sustainability issues facing the global tire industry; from sourcing (natural rubber remains a major ingredient), manufacturing, use (those particles) and the problem of what to do with millions of worn out tires.
In our latest report we set out to find which tire companies have a good sustainability story to tell. And then we measured how well they tell their stories.
Tire companies are well aware of the pressures to improve their sustainability credentials. It’s the reason why The Tire Industry Project (TIP) was set up to analyze and address these issues. TIP is a sector-focused initiative of the World Business Council for Sustainable Development (WBCSD) made up of 11 leading tire and rubber companies.
As members, TIP companies are committed to tackling the sustainability issues in the tire industry, and should have good stories to tell. We assessed all 11 TIP members to find out how good their story is and how well they’re telling it.
These are the companies assessed:
Bridgestone
Continental
Cooper Tires
Goodyear
Hankook Tire
Kumho Tire
Michelin
Pirelli
Sumitomo Rubber
Toyo Tires
Yokohama
This is what we did:
We analyzed and scored the sustainability content on each company website, across six categories:
Strategy – is there a strategy covering tire sustainability?
Reporting – do they report progress against the strategy?
Messaging – are the sustainability messages clear and concise?
Liveliness – how regularly do they communicate on sustainability?
Multimedia – are infographics and video used?
Social media – how regular are posts on Twitter and LinkedIn, at what level of engagement?
Here’s what we found:
Most companies have a good story to tell, but the level of detail they publish varies dramatically. Almost all could be telling their sustainability story better. The graph below shows how the companies scored overall.
Two well-known companies are undoubtedly leading the way. Both have comprehensive sustainability strategies communicated clearly on multiple channels and use eye-catching videos and infographics to explain the meaning behind their work.
Context was founded 23 years ago to help companies develop sustainability strategies – their story – and then to tell their stories well. We offer to share our analysis with all the companies assessed for our reports, but only publish the three top performers and examples of best practice among the group. See our previous reports here.
Does C-19 give you a reason to skip a year in your sustainability reporting?
It’s a fair question, given that most companies will be short of resources and looking to save a few pennies.
We have a solution that saves money and time. More important, it helps you maintain your sustainability reporting record and keeps you connected to those stakeholders who need and want your information. This is especially true for the environment, social and governance (ESG) investors who are enjoying a boost from the commercial ravages of C-19.
Beyond legal
As my colleague Francesca Ward has pointed out, an increasing number of countries have legal requirements for non-financial reporting. The law will not be altered by C-19 and companies should be aware of the minimum statutory demands.
Voluntary reporting has become an onerous task for those who think it wise to tick all the boxes, among them standards and guidelines from the Global Reporting Initiative (GRI), the Sustainable Accounting Standards Board (SASB), the CDP and the Task Force for Climate-related Financial Disclosures.
If one has the resources and the ambition to satisfy all stakeholders – including the burgeoning ESG sector – then there is nothing wrong with offering a gold-plated report. Indeed, it sets you apart as a good corporate citizen pursuing a transparent relationship with all those who have a legitimate interest in the 360º performance of your business.
Feeling the pinch
But if your resources are limited, then we argue that our highly-targeted approach − Smart Reporting™ − is a legitimate and, well, a smart way to ensure you keep connected with those organisations and individuals who influence your prosperity.
What is Smart Reporting?
Here’s an example, from the innovative speaker company Sonos.
For its first sustainability report, the company was determined to create something its employees and leadership would read. It had to be short and sharp. Most important, it needed to share progress accurately and transparently on the Sonos sustainability key performance indicators.
With less than 200 words a page, in a concise 30 pages, Sonos shares its sustainability progress and ambitions. The report’s showpiece is the one-page KPI dashboard which tracks its performance and goals. The format resonates with the company’s leadership and can easily be updated quarterly to share progress with employees and other stakeholders throughout the year.
Smart principles
Small, big or gigantic, the Smart Report™ principles apply to all companies:
Brevity − keep it short
Clarity − make sure it’s easily understood
Relevancy − ensure it concentrates on what matters to the audience
Transparency − it’s OK to push your core messages, but not to obscure the truth
Keep those principles in mind in your planning. Then take these four steps to success.
Smart Steps to Success:
Define the audience. Understanding the needs of your audience helps you decide on the extent of the content and how you want to present it. Plot the information needs of different stakeholders on a matrix. If you’ve done a materiality assessment in recent past, cross check with that and fill any obvious gaps.
Focus on what’s important to the audience. Collect the relevant and essential information. Feel free to ignore nice-to-haves and the gold plating.
Choose a format. Does your audience want a web report or a simple downloadable PDF? The Smart Report lends itself to both. Remember, investors and raters/rankers prefer a time-bound document.
Present the content clearly. Use good design, infographics and simple writing.
Job done for another year. Here’s hoping for a more prosperous 2021.
If you’re unsure about the future of your sustainability reporting during C-19, we’re here to help. Our Smart Report™ will keep you connected to your key stakeholders while saving time and resources compared with conventional reporting.
Reach out to our Smart Report™ expert Lisa for more information.
