METHODOLOGY UPDATES CSA 2021 Food Loss & Waste

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METHODOLOGY UPDATES CSA 2021 Food Loss & Waste METHODOLOGY UPDATES CSA 2021 Food Loss & Waste OVERVIEW: As part of the methodology development process for the 2021 CSA, we have created new questions and updated existing ones to ensure we are capturing the most material sustainability topics. Please find below the new and updated questions for this criterion in 2021. The question texts and methodology presented may be subject to change at any time before the end of March 2021. In addition, questions may look different in the Online Assessment Tool in terms of question structure and layout. Please note that all questions may not be applicable to your industry so please carefully consult the Industries Impacted section. Introduction Criterion Rationale In 2011, the Food and Agriculture Organization of the United Nations (FAO) estimated that a third, by weight, of all food produced in the world was lost or wasted, highlighting the significant economic, environmental and social impact of the inefficiencies in existing food systems. International investor and civil society attention on the issue of food loss and waste is firmly reflected in the 2030 Agenda for Sustainable Development. Specifically, Target 12.3 of the Sustainable Development Goals (SDGs), calls for the halving of per capita global food waste at the retail and consumer levels and the reduction of food losses along production and supply chains, including post-harvest losses. In order to make effective progress on this issue, quantification of food loss and waste needs to be accurate and follow internationally recognized standards in order to understand how much food is lost and wasted, as well as where and why. Corporations are called on to develop clear objectives to reduce their food loss and waste inventories. Whether this is addressing the costs of goods sold, improving of social and environmental performance, informing internal decision making, or to comply with government, industry association or other third-party reduction efforts. Defining such objectives need to be met with clear actions and measures in order to meet time-bound, long-term targets to significantly reduce overall inventory volumes. Reason for Update place to manage overall food loss and es a share of food loss & waste volumes, which are ultimately discarded. Additionally, we require companies to state the financial impact experienced due to these volumes in terms of intensity. Summary of Changes 1. New Question: Food Loss & Waste Commitment 2. New Question: Food Loss & Waste Impact 1. New Question Question: Food Loss & Waste Commitment INDUSTRIES IMPACTED: AIR Airlines FOA Food Products BVG Beverages REX Restaurants and Leisure Facilities CNO Casinos & Gaming RTS Retailing COS Personal Products TRT Hotels, Resorts & Cruise Lines FDR Food & Staples Retailing QUESTION RATIONALE Quantifying food loss & waste is an important foundation for reduction efforts that can deliver a diverse array of benefits from reducing costs associated with over-purchase and disposal to avoiding greenhouse gas emissions, or supporting efforts to eliminate hunger. By following recognized standards, corporations are better equipped to understand why and where losses occur and therefore also how to take appropriate actions to minimize food loss & waste volumes. Furthermore, efforts to appropriately quantify food loss & waste need to be met by clear, time- bound targets and actions across the value chain. KEY DEFINITIONS Food: Any substance whether processed, semi-processed, or raw that is intended for human therefore no longer fit for human consumption. It does not include cosmetics, tobacco, or substances used only as drugs. It does not include processing agents used along the food supply chain, for example, water to clean or cook raw materials in factories or at home. Inedible parts: Components associated with a food that is not intended to be consumed by humans. Examples of inedible parts associated with food could include bones, rinds, and pits/stones. Inedible parts do not include packaging. What is considered inedible varies among users, changes over time, and is influenced by a range of variables including culture, socio- economic factors, availability, price, technological advances, international trade, and geography, and is, therefore, to be included in food loss & waste quantifications. Food loss: Losses that occur in the food supply chain up to but excluding, retail. Any food that is discarded, incinerated, or otherwise disposed of, and does not re-enter in any other productive utilization, such as feed or seed or other industrial uses. Losses that occur during storage, transportation, and processing, also of imported quantities, are therefore all included. Losses include the commodity as a whole with its non-edible parts. Food waste: Waste which occurs at retail and consumer level. Food may be wasted in many ways; such as fresh produce that deviates from what is considered optimal, for example in terms of shape, size, and color, is often removed from the supply chain during sorting operations. Similarly, - consumers and large quantities of wholesome edible food are often unused or leftover and discarded eating establishments. Measuring food loss & waste: Options may include; daily logs, mass balance, survey, proxy data, records, direct weighing, modeling, etc. Often, the options present a trade-off between accuracy and completeness on the one hand and the cost of conducting the quantification on the other. Hence, a company may have to use a range of methods that may be accepted if the method used is relevant to the goals, scope, and resources of the company. Break-down of food loss & waste volumes by food category and/or lifecycle stage: Not a requirement of the FLW Standard, but companies may find it useful to do so in order to identify critical areas for improvement. companies may also disaggregate results in other ways (e.g., by geography or organizational units). Alternative uses of food loss & waste: Streams that are utilized for other processes that may have economic, environmental, or social benefits instead of being discarded without any value creation since some level of food loss or waste might be inevitable. Therefore, it is essential that the current destination of food loss & waste volumes is tracked and that actions are taken to optimize the value created. Destinations and repurposing actions may include any of the below: • Recycling for energy production or industrial products: Entails the conversion of food loss or waste material into industrial products may include examples such as packaging (e.g. bioplastic) materials, traditional materials (leather or feather), or any other products which do not enter the food chain. Using processes to convert the material into energy or biofuels might include processes such as biochemical, anaerobic digestion/co-digestion, controlled combustion, or biomaterial processing. • Recycling for land applications or animal feed: May include; spreading, spraying, injecting, or incorporating organic material (e.g. harvestable crops left/tilled into the soil) onto or below the surface of the land to enhance soil quality are examples of land application. Diverting materials from the food chain (directly or after processing) to animals is also to be included in this category. • Food rescue: May take place through formal programs or informal efforts (that may also be referred to as food recovery, redistribution, or donation). Collection may take place at any point along the food supply chain, such as at the farm (e.g., field gleaning), the food processing facility, or the food distribution outlet (e.g. supermarket, restaurant). Other destinations may include collection by a third-party. If relevant destinations have not been listed, please provide information on your chosen destination in the company comment. Reduction of total food loss & waste volumes in existing processes: Actions taken in order to deliver tangible total volume reductions of your food loss & waste volumes in the value chain may include programs that address pre-harvest/-slaughter losses, food storage, handling, manufacturing, inventory management, purchasing practices, employee engagement, revisiting shelf-life/sell-by date extensions, new product formulations, packaging innovations, new service solutions, etc. DATA REQUIREMENTS When referring to 'food loss & waste', we do not expect reporting on both categories. Food loss and/or food waste may be reported separately, or a company may only be exposed to one category. Companies that are not exposed to food products, or evaluate food loss & waste to be a non- material issue for the company (e.g. financial impact negligible), may mark "Not Applicable" if a detailed explanation is provided in the comment box. Companies in the Food & Drug Retailing Industry that: • only do drug retailing should mark this question as "Not Applicable" and provide an explanation in the comment box • only sell durable goods should mark this question as "Not Applicable" and provide an explanation in the comment box • have operational control over the production of products (e.g. own brand label products), should also include food losses. Companies in the Casinos & Gaming industry (CNO) that are only into online gaming should mark REFERENCES Food loss & waste protocol: www.flwprotocol.org QUESTION LAYOUT Requirement: The question requires publicly available information. Does your company have a strategy to address food loss & waste? o Yes, we address aspects in our food loss & waste strategy Please indicate which group-wide
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