Ken Rath, International B2B Director at GoodMills, about our new role as a supportive stakeholder of the Sustainable Wheat Initiative Europe.
The effects of the climate change are particularly plain to see out in the fields: drought, heavy rainfall and hail damage are having a direct impact on agriculture. Under the political framework – at both the national and European level – companies have an obligation to do business more sustainably.
At the same time, voluntary initiatives by the scientific community and various NGOs are springing up around the world – and more and more companies are signing up to them. One of these is the Science Based Targets Initiative (SBTi), under which around 10,000 companies all over the world have defined and published their own science-based climate goals. These goals are very ambitious. If our company adopted every single one of them, all of the raw materials we purchase would have to come from regenerative agriculture by 2030.
However, this type of agriculture involves significant risks, especially in the initial phase – as a result of lower yields or fluctuations in quality parameters, for instance. This uncertainty translates into risk premiums, which in turn leads to higher procurement costs. So achieving the SBTi goals calls for a willingness by companies along the entire value chain to bear the resulting additional costs for sustainably produced raw materials. And in reality, all customers would have to substitute all of their raw material purchases with higher-priced, sustainably manufactured products by 2030. As we are not in a position to directly influence the willingness to pay extra, we cannot commit to meeting the SBTi obligations at present.
“We want to position ourselves on the market as a preferred partner for sustainable grain solutions”
Nevertheless, we remain firmly committed to achieving the overarching aims of international climate protection – which is why we have signed up to the Sustainable Wheat Initiative Europe.
Launched by the International Association of Plant Bakers (AIBI), the initiative is focused specifically on the baking industry. The aim is to develop effective, practice-driven solutions designed to enhance sustainability along the value chain, in cooperation with all key stakeholders – from the agriculture sector to processing industries and retailers.
In contrast to the cross-industry SBTi, which is based on binding voluntary commitments and public accountability, the Sustainable Wheat Initiative has adopted a practically focused, collaborative approach within its own industry. Although the initiatives’ long-term goals are consistent, the Sustainable Wheat Initiative places an emphasis on open dialogue, collaboration between the partners, as well as implementation of specific projects and tried-and-trusted solutions.
As a supportive stakeholder, GoodMills is actively engaging with this initiative, with a view to shaping the transition towards low-carbon grain production – with the clear aim of positioning ourselves on the market as a preferred partner for sustainable grain solutions.