Barilla presents its new sustainability report: around EUR 1.0 billion investments
5 June 2018
On World Environment Day, Barilla presents its 'Good for You, Good for the Planet' Sustainability Report. Raw materials from responsible supply chains and products with less sugar and salt - and more fibers. A commitment that has reaped good economic results, with 2017 revenues at EUR 3.47M (+3% vs 2016).
In 2017, Barilla purchased 90% of its durum wheat locally (on average). It increased by 26% the share of sustainable durum wheat purchased in Italy. It removed more trucks from the roads, replacing them with more sustainable transport - methane fueled vehicles and the innovative wheat train. The Parma-based company reformulated 26 products, from sauces to bakery, to improve their nutritional profile. Without forgetting animal welfare – Barilla ranked first among Italian companies in the world benchmark (BBFAW) – and a clear commitment to the Diversity and Inclusion initiatives.
These are some of the results illustrated in the Barilla 'Good for You, Good for the Planet' Sustainability Report presented in Milan today, Tuesday 5 June, for World Environment Day.
FOR PASTA THAT IS REALLY GOOD
“Feeding a constantly growing world population with good products, without damaging our Planet, is one of the biggest challenges of our time", said Guido Barilla, Chairman of the Barilla Group. “Supported by the daily commitment of over 8,000 people who work with us, we are ready to face this challenge”.
BARILLA EXPECTS TO INVEST AROUND 1 BILLION EUROS OVER 5 YEARS
Sustainability is a virtuous path that has been guiding the choices made by the world’s largest pasta company for years: Barilla expects to invest about 1 billion euros over five years on its industrial assets. About 60% of the investments will be aimed at boosting competitiveness and sustainability by improving processes and technologies, while over 40% will support innovation and geographic expansion. The expansion of the plant near Parma (in Rubbiano) is part of this vision. The plant will become the largest sauce factory in Europe, with the best technology and energy savings standards.
Investments in Italy will mainly be focused on asset maintenance and replacement, innovation and on quality and food safety improvement. Outside Italy, investments will be mainly aimed at expanding production capacity to grow the business.
RAW MATERIALS: 90% OF DURUM WHEAT FOR PASTA PURCHASED LOCALLY
Barilla's commitment goes from farm to fork. Last year, the Italian company purchased (on average) 1,000,000 tons of durum wheat (90% of the total) in the same location where pasta is produced. In Italy, the company signed cultivation contracts for 57% of purchased volumes (430,000 tons), involving over 5,000 farms. The sustainable durum wheat project grew by 26%, with an increase in volume from 190,000 to 240,000 tons.
It is also worth remembering Barilla's attention to animal welfare: in the supply chain of the 'Le Emiliane' and 'La Collezione' pasta, the Parma-based Group uses 100% A category fresh free-range eggs.
THE 'GUARDA TU STESSO' PLATFORM
The Guardatustesso.it (Italian for “look for yourself”) platform, designed for the sauce segment, was renewed in 2017, with new contents dedicated to pasta: https://www.barilla.com/it-it/guarda-tu-stesso.
Anyone can virtually visit a Barilla plant or wheat field to find out more about raw materials and production.
A SUSTAINABLE SOFT WHEAT SUPPLY CHAIN DEVELOPED IN FRANCE ENGAGING ALL INVOLVED PARTIES
Just as Barilla pioneered three-year cultivation contracts with Italian farmers on the durum wheat supply chain, the Group also forged close relations with the French farming industry: the Harrys brand, market leader in the French soft bread sector, only uses wheat produced entirely in France. Currently, the brand is the third-largest buyer of French common wheat, with nearly 145,000 tons per year.
Launching the common wheat supply chain for Harrys was an ambitious step in support of both local farmers and more environmentally friendly agricultural practices. As in Italy, the new supply chain will be rooted in good practices, which are defined through the engagement of all actors involved - farmers, cooperatives, mills, etc. The new supply chain should be operational as soon as this year's crop is ready for harvest. Harrys is committed to better pay for farmers and to cooperation based on multi-year agreements.
The project has been already subscribed by 200 farmers.
PASTA: 10 NEW “BETTER FOR YOU” PRODUCTS LAUNCHED IN 2017
Flavor, sustainability and healthy lifestyles: in 2017, Barilla launched 10 new products based on 'Better for You' pasta, a range of whole grain or pulse products that contributed to a better nutritional balance.
ENVIRONMENTALLY FRIENDLY PASTA: 1,100 TONS CO2 REDUCTION EACH YEAR WITH THE WHEAT TRAIN
Since 2010, Barilla has been reducing water consumption by 31% and greenhouse gas emissions by 24% for each ton of pasta it produced in the Group's pasta factories. At the same time, the new railway opened in Parma in 2015 – the so-called wheat train – enabling an average savings of 1,100 tons of greenhouse gas per year, and resulted in 3,300 fewer trucks on the roads of Europe. In 2017, a new fleet of liquid methane fueled vehicles was launched for road transport.
BARILLA SAUCES: REVISED SALT AND/OR SUGAR CONTENT IN 12 PRODUCTS IN 2017
From pasta to sauces, another bulwark of the Mediterranean Diet. In 2017, Barilla reviewed the sugar and/or salt content of 12 sauces and launched 100% vegetarian sauces, with no animal ingredients and no lactose. Two-thirds of Barilla's sauce production and more than 98% of pesto production is crafted in the Rubbiano plant, near Parma, which is set to become the largest sauce factory in Europe within the next eight months, thanks to a EUR 50 million investment.
TOMATO, BASIL AND MEAT: LOCAL RAW MATERIALS
To date, Barilla purchases nearly 63,000 ton of tomato each year. For sauces produced in Italy, the company purchases 53,000 ton of tomato, 84% of which is awarded the Global G.A.P. sustainable agriculture certificate. Over 3,000 tons of Italian basil are purchased from selected producers every year. For the Pesto alla Genovese, the season's basil is picked at dawn and processed within hours in the nearby plant. The meat used for the sauces comes from 100% cattle raised in Italy.
LOW ENVIRONMENTAL IMPACT SUPPLY CHAIN FOR SAUCES
In the last 5 years, Barilla has been reducing the use of water resources by 15% and CO2 emissions by 49% for each ton of sauces and pesto produced in its plants. In 2017, three new road tractors fueled by liquid gas methane were added to the fleet, thus reducing nitrogen oxide by 70% and particulates by 99%. Furthermore, 100% of the jars and pods used for sauce making are recyclable.
WASA: NEW BIO AND GLUTEN FREE PRODUCTS LAUNCHED IN 2017
Wasa is the world's largest crisp bread producer. Part of the Barilla Group since 1999, the company mainly uses two production plants: Filipstad in Sweden and Celle in Germany. In line with the 'Good for You, Good for the Planet' mission, 90% of Wasa products are low in sugar, 100% have high fiber content and 65% contain whole grains. In 2017, Wasa launched six new products on the market, two of which are bio products, one contains ancient grains based on spelt and chia, two are gluten free products and one is the first vegan snack, filled with hummus: 100% vegetable proteins and 40% less fats compared with cheese-containing snacks.
In both Germany and Sweden, Barilla is committed to buying local raw materials – weather permitting. 100% of rye and rye flour is produced in the same country where the plants are located. Rye is a precious grain containing many fibers and minerals. Together with other partners, Barilla is carrying out Rye Power research to show the grain's many nutritional and health benefits.
A true example of a product that is Good for You, Good for the Planet! Since 2010, Barilla has reduced CO2 emissions and water consumption per ton of product by 82% and 15%, respectively, in its Wasa plants. Furthermore, almost 70% of products moved from Sweden to Norway and from Germany to Sweden are transported by rail, thus achieving a 1,612 reduction of CO2 emission compared to 100% road transport.
D&I BARILLA INITIATIVES
The Barilla Group is committed to promoting and safeguarding diversity at all corporate levels. This includes ensuring that the voice, perspective and individuality of every employee, partner and customer is respected. This commitment is behind the fact that, in 2017, for the fourth consecutive year, Barilla scored 100% in the Corporate Equality Index, a system which assesses the company's programs for lesbian, gay, bisexual, transgender and intersex personnel developed by the Human Rights Campaign (the leading American association for the promotion of LGBTI rights). Last January, at the World Economic Forum in Davos, Barilla Group was named the first Italian company to support the Standards of Conduct for Business issued by the Office of the United Nations High Commissioner for Human Rights (OHCHR), with the objective of combating LGBTI discrimination. The No Hunger initiative in Lebanon and the project on Refugees working integration in the Barilla offices in Italy, France, Germany and Sweden are other examples of a strong D&I commitment.
2017 REVENUE REACHES EUR 3,468 MILLION (+3%)
Thanks to the 'Good for You, Good for the Planet' corporate mission inspiring its action, Barilla in 2017 achieved 3,468 million euro revenues (+3% compared to 2016, net of foreign exchange effects). To date, the Parma Group is world leader in the pasta market and leader in continental Europe for sauces, for bakery products in Italy and crisp breads in Scandinavia, with 28 production plants.
All the Group's geographical markets have grown, with improved performance in Italy in particular, and continued growth in Europe. Growth was driven by the excellent results in the sauce sector. Bakery products and pasta in Italy and France exhibited especially good performances, thanks to the new 'Better for You' offers dedicated to personal wellness.
THE SUSTAINABILITY CHALLENGES BEFORE BARILLA FROM NOW TO 2030
By 2020, Barilla aims to:
- double the number of farmers involved in the Sustainable Agriculture program from 5,000 to 10,000, also doubling the volumes of sustainable wheat from the Italian supply chain.
- purchase 100% of the main raw materials (Durum wheat, Semolina, Soft Wheat Flour, Rye, Tomato, Eggs, Sunflower Oil, Rapeseed Oil) in line with the Barilla Code of Sustainable Agriculture.
- reduce CO2 and water consumption by 30% compared to 2010, and set the target of zero waste in landfills.
By 2030, Barilla pledges to:
- further increase the 'better for you' product range, such as whole grain, fiber and protein rich products that today account for 8.4% of the total, to reach at least 30% of total volume.
- market even lighter single dose snacks, ensuring that 85% of such products on the market has less than 150 Kcal.
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