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Engaging employees,
and other lessons in sustainability

November 2008
agenda




o   An innocent story



o   What is sustainability?



o   Three lessons
a tale of two ideas


innocent started as a three friends with one simple aim




         Make life a little bit better and a little bit easier
a tale of two ideas


This revolutionary thinking led us to their first idea



                       The amazing electric bath
a tale of two ideas


Fortunately their second idea had more merits



                         The fruit smoothie
from small acorns


We started small
our products

Today we have a family of smoothies for all occasions
our new products

And in the past two months, 2 new ranges have been added

      Orange Juice                        Veg Pots
europe

From a UK base we are now sold in a few other places too




                                                                9
growth

           All of which has delivered some amazing growth over the years

                          120                                                                     114


     Revenue              100
     £ Millions
                            80                                                              75


                            60

                                                                                     38
                            40


                            20                                                17
                                                                      11
                                                         4      6
                                    0.2       1.4
                              0
                                   1999      2000       2001   2002   2003   2004   2005   2006   2007


Source: innocent Ltd management accounts, 2006 budget
agenda




o   An innocent story



o   What is sustainability?



o   Three lessons
Why do we want to be
   sustainable?
core philosophy


An over-riding principle by which we make all decisions




          Create a business we
             can be proud of

                      a.k.a The Nursing Home Test
company values


This drives our 5 values


                     Create a business we can be proud of


     Be                      Be                                                 Be                    Be
    natural            entrepreneurial                 Be                    commercial             generous
                                                   responsible
• Keep it human,       • Chase opportunities                              • Create growth and    • With time where
  put people first       and be responsive                                  profit for us and      needed
                                                • Leave things a little
                                                                            our customers
• Make 100%            • Be creative and          better than we find                            • With praise
  natural,               challenge the status     them                    • Be tough, and be       wherever possible
  delicious,             quo                                                fair
                                                • Move towards only                              • With wealth with
  healthy stuff,
                       • Prove it can be done     zero or positive        • Think clearly, act     those that deserve
  100% of the time
                                                  impacts                   decisively and         it
• Act and talk                                                              keep the main
  naturally,                                                                thing, the main
  treating others                                                           thing
  as you would
  want to be
  treated.
What is sustainability?
We think sustainability is about…




             Leaving things a little bit
             better than we find them
business value from sustainability




                         Continuous innovation                              Planning for the future

 Long term               Stay competitive, realise major                    The sustainability of our planet, and
                         product or cost improvements                       communities ensures the
                         through clean technology.                          sustainability of our business




                         Cost and risk reduction                            Brand reputation and legitimacy
 Short term
                         Lower costs and risks by reducing                  Gain trust and loyalty of customers,
                         resource use.                                      suppliers and employees




                                             Internal                                     External
Source: S. Hart 1997, Beyond Greening: Strategies for a sustainable world
being sustainable

There is no perfect solution – it’s a balancing act



                                 Planet

                               Viable natural
                               environment




                                 Sustainable
                                 development
                People                                Profit

                Nurturing                             Sufficient
               community                              Economy
sustainability strategy


Our sustainability strategy has 5 key elements




                      Made from
                                          In market                          Sharing some of
Produce 100%          socially and                      Produced by a
                                           leading                            wealth created
healthy, 100%       environmentally                    resource efficient
                                         sustainable                         with people who
natural drinks         conscious                           business
                                          packaging                             deserve it
                      ingredients




100%               ethical            sustainable      resource              sharing the
natural          ingredients           packaging       -efficient             proceeds
drinks                                                 business
sustainability strategy


Firstly we need to only make natural healthy products




                      Made from
                                          In market                          Sharing some of
Produce 100%          socially and                      Produced by a
                                           leading                            wealth created
healthy, 100%       environmentally                    resource efficient
                                         sustainable                         with people who
natural drinks         conscious                           business
                                          packaging                             deserve it
                      ingredients




100%               ethical            sustainable      resource              sharing the
natural          ingredients           packaging       -efficient             proceeds
drinks                                                 business
product has to be inherently sustainable


Natural drinks that tastes good and do you good

                         100% natural fruit
                          Never, ever from
                            concentrate
                            2 portions per
                                bottle
                          Naturally low GI
sustainability strategy


Buying ethical ingredients




                      Made from
                                          In market                          Sharing some of
Produce 100%          socially and                      Produced by a
                                           leading                            wealth created
healthy, 100%       environmentally                    resource efficient
                                         sustainable                         with people who
natural drinks         conscious                           business
                                          packaging                             deserve it
                      ingredients




100%               ethical            sustainable      resource              sharing the
natural          ingredients           packaging       -efficient             proceeds
drinks                                                 business
ethical ingredients

We want to buy our fruit from farms that look after both their workers
and the environment
ethical ingredients


We really like the Rainforest Alliance




                               1. Covers both social and environmental issues
                               2. Encourages farms to build their skills
                                  and capabilities
                               3. Works with all types and sizes of farms
                               4. Undertaken by local NGOs



All our bananas are from Rainforest Alliance certified farms.

We also buy some RA certified pineapple and passion fruits, and have given the
RA 3 years of funding to increase the amount and variety of certified fruit.
innocent standards

For other fruits, we have now developed our own comprehensive
minimum standards
sustainability strategy


After the fruit, its about the packaging




                      Made from
                                          In market                          Sharing some of
Produce 100%          socially and                      Produced by a
                                           leading                            wealth created
healthy, 100%       environmentally                    resource efficient
                                         sustainable                         with people who
natural drinks         conscious                           business
                                          packaging                             deserve it
                      ingredients




100%               ethical            sustainable      resource              sharing the
natural          ingredients           packaging       -efficient             proceeds
drinks                                                 business
Sustainable packaging

We look for 4 main sustainability criteria for our packaging formats:




             1. To only use recycled or renewable materials

             2. To use as little material as possible

             3. To use packaging formats
                with a low carbon footprint

             4. To use packaging formats
                for which there is a widely available
                sustainable waste management option
reduce virgin finite materials

Last year we achieved our long-term ambition of
a 100% rPET bottle – a global first

                        100%

             Percent
             Recycled
                        80%
             Material


                        60%



                        40%



                        20%



                         0%
                               2001    2003       2005    2007
sustainability strategy


We want to be as efficient as possible




                      Made from
                                          In market                          Sharing some of
Produce 100%          socially and                      Produced by a
                                           leading                            wealth created
healthy, 100%       environmentally                    resource efficient
                                         sustainable                         with people who
natural drinks         conscious                           business
                                          packaging                             deserve it
                      ingredients




100%               ethical            sustainable      resource              sharing the
natural          ingredients           packaging       -efficient             proceeds
drinks                                                 business
the basics


We started with the things that just made common sense
suppliers going green


We have helped one manufacturer halve their use of land fill …



               40

    Landfill   35
    Waste
   (Tonnes)    30                                                54%
               25

               20

               15

               10

                5

                0
                    Mar       April       May        June        July
suppliers going green


… and move to renewable energy
sustainability strategy


Lastly, we want to give something back




                      Made from
                                          In market                          Sharing some of
Produce 100%          socially and                      Produced by a
                                           leading                            wealth created
healthy, 100%       environmentally                    resource efficient
                                         sustainable                         with people who
natural drinks         conscious                           business
                                          packaging                             deserve it
                      ingredients




100%               ethical            sustainable      resource              sharing the
natural          ingredients           packaging       -efficient             proceeds
drinks                                                 business
The innocent foundation

•     Our vision




    To build sustainable futures for
      the world’s poorest people




                   Support people dependent on subsistence
                   agriculture to build sustainable futures
The projects

In 2007 we supported 18 projects around the world, helping 58,000 people
on the path a more sustainable life
In summary




Good Business is
 Good Business

    • Lower costs
 • Loyal customers
  • Motivated team
agenda




o   An innocent story



o   What is sustainability?



o   Three lessons
Lesson 1:

           Engage every employee by
putting sustainability at the heart of your business
At the heart….

Make sustainability fundamental to your business, not an add on




                                                                        39
innocent purpose

For innocent, sustainability is a key part of our business purpose




                       Make food good
                Delicious             Healthy             Sustainable
shared accountability

And, rather than a separate function, innocent has put sustainability at the heart of it’s
business, with accountability shared across many teams



    Sponsor
                                Technical              Packaging              Production
      Rich


     Lead
      Jess
500 hands are better than two

Everyone is trained, and every team has a champion




     Teams who have completed                Appointed sustainability champion:
     adv. sustainability training:
                                             • All international teams
     • Products
                                             • Technical, Production, Procurement
     • Procurement
                                             • PR, Marketing, Comms
     • This Water
                                             • Commercial, Consumers
     • Scandi
                                             • People, IT, Finance, Environment
     • France
     • Ireland
     • Germany
Lesson 2:

Start measuring
One step at a time
carbon footprint

Until you measure it, you can’t identify the easy wins. Our 2006 carbon
audit lead us to set three objectives for 2007
           800

                                                                         Disposal
    CO2                                                                 Use
  per Unit 600                                     Distribution
  (Grams)

                                                   Manufacture

           400                                                           Packaging

                                                 Material shipping


           200
                                                    Growing &
                                                     Packing


             0
                        250ml Bottle                1L Carton
1. Reduced fertiliser use

Fertiliser use is a major contributor – our minimum standards and buying
certified fruit reduces its use
           800

                                                                     Disposal
    CO2                                                              Use
  per Unit 600                                     Distribution
  (Grams)

                                                   Manufacture

           400                                                       Packaging

                                                 Material shipping


           200
                                                    Growing &
                                                     Packing


             0
                       250ml Bottle                 1L Carton
2. Move to 100% recycled plastic

Packaging was the biggest issue for bottles – rPET reduced the total by 18%

           800

                                                                    Disposal
    CO2                                                             Use
  per Unit 600                                    Distribution
  (Grams)

                                                  Manufacture

           400                                                      Packaging

                                                Material shipping


           200
                                                   Growing &
                                                    Packing


             0
                       250ml Bottle                1L Carton
3. reduce our suppliers’ footprints

It was also clear we needed to help our suppliers realise savings

          800

                                                                     Disposal
   CO2                                                              Use
 per Unit 600                                      Distribution
 (Grams)

                                                  Manufacture

          400                                                       Packaging

                                                Material shipping


          200
                                                   Growing &
                                                    Packing


            0
                       250ml Bottle                1L Carton
Lesson 3:

Engage your consumer
Our website

We keep our consumers informed of our sustainability work on our website, with
frequent blog posts too




                      Lesson 3: Engage your consumer
smoothie footprints

We worked with the carbon trust to launch carbon labelling, although we haven’t yet
put these on our bottles as consumer understanding of the concept is too low
consumer context
Instead, we have tried to make the information meaningful with our idea for a daily
allowance of CO2 per person
summary

 We are at the beginning of a journey. We are no way near good enough.
 But we know where to go, and how to get there.




                    Made from
                                       In market                          Sharing some of
Produce 100%        socially and                      Produced by a
                                        leading                            wealth created
healthy, 100%     environmentally                    resource efficient
                                      sustainable                         with people who
natural drinks       conscious                           business
                                       packaging                             deserve it
                    ingredients

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Engaging employees and other lessons in sustainability

  • 1. Engaging employees, and other lessons in sustainability November 2008
  • 2. agenda o An innocent story o What is sustainability? o Three lessons
  • 3. a tale of two ideas innocent started as a three friends with one simple aim Make life a little bit better and a little bit easier
  • 4. a tale of two ideas This revolutionary thinking led us to their first idea The amazing electric bath
  • 5. a tale of two ideas Fortunately their second idea had more merits The fruit smoothie
  • 6. from small acorns We started small
  • 7. our products Today we have a family of smoothies for all occasions
  • 8. our new products And in the past two months, 2 new ranges have been added Orange Juice Veg Pots
  • 9. europe From a UK base we are now sold in a few other places too 9
  • 10. growth All of which has delivered some amazing growth over the years 120 114 Revenue 100 £ Millions 80 75 60 38 40 20 17 11 4 6 0.2 1.4 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 Source: innocent Ltd management accounts, 2006 budget
  • 11. agenda o An innocent story o What is sustainability? o Three lessons
  • 12. Why do we want to be sustainable?
  • 13. core philosophy An over-riding principle by which we make all decisions Create a business we can be proud of a.k.a The Nursing Home Test
  • 14. company values This drives our 5 values Create a business we can be proud of Be Be Be Be natural entrepreneurial Be commercial generous responsible • Keep it human, • Chase opportunities • Create growth and • With time where put people first and be responsive profit for us and needed • Leave things a little our customers • Make 100% • Be creative and better than we find • With praise natural, challenge the status them • Be tough, and be wherever possible delicious, quo fair • Move towards only • With wealth with healthy stuff, • Prove it can be done zero or positive • Think clearly, act those that deserve 100% of the time impacts decisively and it • Act and talk keep the main naturally, thing, the main treating others thing as you would want to be treated.
  • 16. We think sustainability is about… Leaving things a little bit better than we find them
  • 17. business value from sustainability Continuous innovation Planning for the future Long term Stay competitive, realise major The sustainability of our planet, and product or cost improvements communities ensures the through clean technology. sustainability of our business Cost and risk reduction Brand reputation and legitimacy Short term Lower costs and risks by reducing Gain trust and loyalty of customers, resource use. suppliers and employees Internal External Source: S. Hart 1997, Beyond Greening: Strategies for a sustainable world
  • 18. being sustainable There is no perfect solution – it’s a balancing act Planet Viable natural environment Sustainable development People Profit Nurturing Sufficient community Economy
  • 19. sustainability strategy Our sustainability strategy has 5 key elements Made from In market Sharing some of Produce 100% socially and Produced by a leading wealth created healthy, 100% environmentally resource efficient sustainable with people who natural drinks conscious business packaging deserve it ingredients 100% ethical sustainable resource sharing the natural ingredients packaging -efficient proceeds drinks business
  • 20. sustainability strategy Firstly we need to only make natural healthy products Made from In market Sharing some of Produce 100% socially and Produced by a leading wealth created healthy, 100% environmentally resource efficient sustainable with people who natural drinks conscious business packaging deserve it ingredients 100% ethical sustainable resource sharing the natural ingredients packaging -efficient proceeds drinks business
  • 21. product has to be inherently sustainable Natural drinks that tastes good and do you good 100% natural fruit Never, ever from concentrate 2 portions per bottle Naturally low GI
  • 22. sustainability strategy Buying ethical ingredients Made from In market Sharing some of Produce 100% socially and Produced by a leading wealth created healthy, 100% environmentally resource efficient sustainable with people who natural drinks conscious business packaging deserve it ingredients 100% ethical sustainable resource sharing the natural ingredients packaging -efficient proceeds drinks business
  • 23. ethical ingredients We want to buy our fruit from farms that look after both their workers and the environment
  • 24. ethical ingredients We really like the Rainforest Alliance 1. Covers both social and environmental issues 2. Encourages farms to build their skills and capabilities 3. Works with all types and sizes of farms 4. Undertaken by local NGOs All our bananas are from Rainforest Alliance certified farms. We also buy some RA certified pineapple and passion fruits, and have given the RA 3 years of funding to increase the amount and variety of certified fruit.
  • 25. innocent standards For other fruits, we have now developed our own comprehensive minimum standards
  • 26. sustainability strategy After the fruit, its about the packaging Made from In market Sharing some of Produce 100% socially and Produced by a leading wealth created healthy, 100% environmentally resource efficient sustainable with people who natural drinks conscious business packaging deserve it ingredients 100% ethical sustainable resource sharing the natural ingredients packaging -efficient proceeds drinks business
  • 27. Sustainable packaging We look for 4 main sustainability criteria for our packaging formats: 1. To only use recycled or renewable materials 2. To use as little material as possible 3. To use packaging formats with a low carbon footprint 4. To use packaging formats for which there is a widely available sustainable waste management option
  • 28. reduce virgin finite materials Last year we achieved our long-term ambition of a 100% rPET bottle – a global first 100% Percent Recycled 80% Material 60% 40% 20% 0% 2001 2003 2005 2007
  • 29. sustainability strategy We want to be as efficient as possible Made from In market Sharing some of Produce 100% socially and Produced by a leading wealth created healthy, 100% environmentally resource efficient sustainable with people who natural drinks conscious business packaging deserve it ingredients 100% ethical sustainable resource sharing the natural ingredients packaging -efficient proceeds drinks business
  • 30. the basics We started with the things that just made common sense
  • 31. suppliers going green We have helped one manufacturer halve their use of land fill … 40 Landfill 35 Waste (Tonnes) 30 54% 25 20 15 10 5 0 Mar April May June July
  • 32. suppliers going green … and move to renewable energy
  • 33. sustainability strategy Lastly, we want to give something back Made from In market Sharing some of Produce 100% socially and Produced by a leading wealth created healthy, 100% environmentally resource efficient sustainable with people who natural drinks conscious business packaging deserve it ingredients 100% ethical sustainable resource sharing the natural ingredients packaging -efficient proceeds drinks business
  • 34. The innocent foundation • Our vision To build sustainable futures for the world’s poorest people Support people dependent on subsistence agriculture to build sustainable futures
  • 35. The projects In 2007 we supported 18 projects around the world, helping 58,000 people on the path a more sustainable life
  • 36. In summary Good Business is Good Business • Lower costs • Loyal customers • Motivated team
  • 37. agenda o An innocent story o What is sustainability? o Three lessons
  • 38. Lesson 1: Engage every employee by putting sustainability at the heart of your business
  • 39. At the heart…. Make sustainability fundamental to your business, not an add on 39
  • 40. innocent purpose For innocent, sustainability is a key part of our business purpose Make food good Delicious Healthy Sustainable
  • 41. shared accountability And, rather than a separate function, innocent has put sustainability at the heart of it’s business, with accountability shared across many teams Sponsor Technical Packaging Production Rich Lead Jess
  • 42. 500 hands are better than two Everyone is trained, and every team has a champion Teams who have completed Appointed sustainability champion: adv. sustainability training: • All international teams • Products • Technical, Production, Procurement • Procurement • PR, Marketing, Comms • This Water • Commercial, Consumers • Scandi • People, IT, Finance, Environment • France • Ireland • Germany
  • 44. One step at a time
  • 45. carbon footprint Until you measure it, you can’t identify the easy wins. Our 2006 carbon audit lead us to set three objectives for 2007 800 Disposal CO2 Use per Unit 600 Distribution (Grams) Manufacture 400 Packaging Material shipping 200 Growing & Packing 0 250ml Bottle 1L Carton
  • 46. 1. Reduced fertiliser use Fertiliser use is a major contributor – our minimum standards and buying certified fruit reduces its use 800 Disposal CO2 Use per Unit 600 Distribution (Grams) Manufacture 400 Packaging Material shipping 200 Growing & Packing 0 250ml Bottle 1L Carton
  • 47. 2. Move to 100% recycled plastic Packaging was the biggest issue for bottles – rPET reduced the total by 18% 800 Disposal CO2 Use per Unit 600 Distribution (Grams) Manufacture 400 Packaging Material shipping 200 Growing & Packing 0 250ml Bottle 1L Carton
  • 48. 3. reduce our suppliers’ footprints It was also clear we needed to help our suppliers realise savings 800 Disposal CO2 Use per Unit 600 Distribution (Grams) Manufacture 400 Packaging Material shipping 200 Growing & Packing 0 250ml Bottle 1L Carton
  • 50. Our website We keep our consumers informed of our sustainability work on our website, with frequent blog posts too Lesson 3: Engage your consumer
  • 51. smoothie footprints We worked with the carbon trust to launch carbon labelling, although we haven’t yet put these on our bottles as consumer understanding of the concept is too low
  • 52. consumer context Instead, we have tried to make the information meaningful with our idea for a daily allowance of CO2 per person
  • 53. summary We are at the beginning of a journey. We are no way near good enough. But we know where to go, and how to get there. Made from In market Sharing some of Produce 100% socially and Produced by a leading wealth created healthy, 100% environmentally resource efficient sustainable with people who natural drinks conscious business packaging deserve it ingredients