Fazer Group carefully monitors the quality, origin and responsibility practices in the supply chains of the raw materials used in its products and services. Since the 1990s, Fazer has applied a process in which information about suppliers is systematically gathered before selection and approval. Auditing potential suppliers is part of this process. Audits assess suppliers’ performance regarding food safety, production, quality and environmental issues. Fazer Group co-operates closely with its suppliers to ensure the responsibility of Fazer’s supply chain.
“We strive to maintain our responsibility in the sourcing process as we grow internationally. Whether raw materials are domestically produced or need to be sourced from elsewhere in the world, we are responsible for ensuring our consumers’ health and safety by only having secure sources of raw materials,” says Jukka Rautavalta, Senior Vice President, Group Sourcing of the Fazer Group.
Improving raw material risk analysis
For many years, Fazer has set targets and worked to raise its responsibility in sourcing essential raw materials like palm oil, cocoa, fish and grain. In 2012, these efforts were developed further through the implementation of an analysis tool for raw material risks that complements supplier selection and auditing processes by incorporating corporate responsibility evaluations. It has helped to identify key environmental and social responsibility risks for each raw material category. In 2013, the Group examined the results of this analysis and allocated measures to the categories that required immediate attention. The work continues in 2014.
Fazer supports responsible palm oil production
Fazer supports sustainable palm oil production through GreenPalm certificates. In 2013, 100 per cent of palm oil used by Fazer was covered by GreenPalm certificates for the second year in a row. This means that for all the palm oil it used, Fazer paid a voluntary premium to a producer operating within RSPO’s (Roundtable on Sustainable Palm Oil) strict guidelines for social and environmental responsibility. Fazer continues to develop responsibility and traceability in its palm oil supply chain. In 2013, the Group performed well among companies worldwide, receiving 11 points out of 12 on the Palm Oil Buyers Scorecard of the World Wide Fund for Nature (WWF).
Progress towards the cocoa vision
According to Fazer’s cocoa vision, by 2017, the origin of cocoa products used by Fazer will be traceable and meet responsibility requirements. In 2013, the Group increased the proportion of its cocoa products that comply with responsibility programmes to 40 per cent of total cocoa purchased. This share comprises, for example, UTZ certified cocoa and traceable cocoa butter based on the Source Trust programme.
Cocoa sourcing at Fazer is based on improved traceability and adheres to the responsibility principles of the World Cocoa Foundation concerning People, Planet and Profit. The principles promote sustainable cocoa growing communities through economic and social development and environmental stewardship.
Record-high score in grain quality audits
In assessments by the food safety auditing organisation AIB, Fazer Mill & Mixes has achieved excellent results in international comparisons for several years in a row, reaching its all-time high score in 2013. The origin of the grain and domestic content are important factors in Fazer Mill & Mixes' sourcing. Wheat and oat used in Finland are 100 per cent Finnish. The use of Finnish rye is being augmented through continuous cooperation with the Pro Ruis (“Pro Rye”) Association, whose founder member Fazer is.
Promoting responsible fish sourcing
Updated yearly, the fish sourcing strategy of Fazer Food Services focuses on responsibility issues. Fazer’s restaurants in Finland, Sweden and Denmark follow WWF recommendations regarding the use of seafood. Also restaurants in Norway use the recommendations as a standard. Furthermore, Fazer has set specific targets for fish sourcing in each of its operating countries.
In Finland the target is to double the share of green list fish by 2015. Its share was 27 per cent in 2011 and reached 39 per cent in 2013. In Sweden, the target is to increase the share of MSC certified fish, which was 50 per cent in 2013. In 2012–2013, Fazer conducted a cooperation with WWF Finland to promote responsible fish and seafood sourcing.