Biodiversity: A moral sourcing obligation that needs to be addressed

22 Jun 2018 --- New surveys of more than 5,000 consumers in five countries indicate that the majority (79 percent) feel that “companies have a moral obligation” to have a positive impact on people and biodiversity in their sourcing of natural ingredients, but only 37 percent feel “confident that companies pay serious attention” to these issues. The non-profit Union for Ethical BioTrade (UEBT) has just published the 2018 edition of the Biodiversity Barometer.

The report offers new insights as well as lessons from a decade of research on biodiversity awareness among over 60,000 consumers in sixteen countries.

The report was unveiled at the Beauty of Sourcing with Respect Conference, an annual event in Paris that brings together executives from global beauty brands, as well as company leaders from the natural pharmaceutical, specialty food and personal care sectors, in addition to non-profit experts, policymakers and others.

One positive finding from the latest Biodiversity Barometer is that awareness and understanding of biodiversity are rising each year. “Interesting findings are the yearly increases in awareness of this issue. It’s particularly driven by young people who hear about it at school and also consumers in emerging economies such as Brazil and China. This is not necessarily surprising because at the world level there are actions underway to increase biodiversity awareness as part of the UN efforts,” Rik Kutsch Lojenga, UEBT’s Executive Director says in a detailed interview with FoodIngredientsFirst.

He notes that consumers are genuinely interested in the issue of biodiversity and the majority, about 74 percent, indicated that it would affect them personally if biodiversity disappeared. They find biodiversity conservation important for their personal well-being and that of future generations: more than 80 percent of people in France, Germany and Brazil said that biodiversity is important to their quality of life, according to the survey. 

However, a further key finding was that many consumers don’t really know what to do about biodiversity themselves or how they can contribute to preservation. “When they are asked, they do feel like companies should respect biodiversity and there are a significant number of people who also feel that if they bought products that they know respects people and diversity along the supply chain, it would make them feel good,” he says. “At the same time, consumers are finding that their level of trust is very low. Consumers indicated that they thought that only about 37 percent of companies really care about biodiversity. This number has not really changed in the last ten years. So, there is a real challenge for companies to gain this trust. Particularly the bigger companies, consumers often mention that they trust smaller companies more,” he adds.

While the issue of biodiversity in the personal care sector was key at the Beauty of Sourcing with Respect Conference, there are many lessons that can be learned by the food industry too. “Biodiversity is important across all industry sectors, including the food sector. This is partly because of the increase in consumer awareness of this relatively new concept and it is also because biodiversity is more and more a source of innovation. Consumers want naturals; they are looking for nature-based solutions and companies are investing more and more biodiversity-based and natural based R&D. There are also new global regulations that are also guiding this type of R&D. Very strong regulations in countries like India, Brazil, South Africa and the EU are aiding this. This also affects food companies,” he says. 

Kutsch Lojenga also stresses the issue of access to raw materials themselves, which is getting more difficult, e.g., fruits are dependent on pollinators. “Bigger companies that have made commitments on responsible sourcing – such as Unilever – are going beyond the commodities and also starting to look at the smaller ingredients. These can come from all over the world, and often areas that are rich in biodiversity. For example, about 50 percent of the ingredients in the herbal tea sector, where we work, are collected from the wild. Its wild collection of apples, flowers, berries. There is a very strong link with biodiversity there,” he stresses. 

One of the principal sources of inspiration that can be taken from personal care for the food and ingredients space is how to respond to the trends of transparency and how to have a positive impact on biodiversity in the sourcing area. “To know where your raw materials are coming from, you need to have long-term partnerships with the suppliers. For both the food and personal care sectors, this remains a big challenge. There are a lot of complex supply chains with intermediaries. If you really want to have an impact on the source, this is where you need to start change. It’s a long-term process, but some companies are actively engaged in this and can have a positive impact.”

Significant data advances such as blockchain technology can help from a traceability perspective, thereby boosting the response to biodiversity. “There is a big opportunity here to make a direct link between the consumer and the sourcing area. That is more relevant in the food sector where coffee beans, for example, travel all the way from the plantation to the coffee cup. In the case of low dosage ingredients, such as functional food or personal care ingredients, the consumers don’t know that these ingredients are even in there. So, it’s difficult to start to make the link between the sourcing area and the shelf. The technologies are there and are offering opportunities to improve traceability,” he notes. 

Vanilla is one crop that has been in the spotlight in recent years as having a very uncertain future. Estimates are that over 75 percent of the vanilla crop comes from Madagascar, leading to high volatility for a crop that actually originates elsewhere. 

“Vanilla originally originates from Mexico and that is the only country where it is not hand-pollinated. In Madagascar, which is the main source of vanilla, all the vanilla is hand pollinated. It is grown in areas that are rich in biodiversity and comes from forest areas. There is a potentially a very strong positive impact on the sustainable use of the Madagascar biodiversity. At the same time, there are a lot of price fluctuations with vanilla and significant damage from hurricanes. You can see the vulnerability of crops like this due to extreme climate events, which are more important now because of climate change. So, to have a strong, resilient eco-system that can survive some of those significant weather effects is important,” he says.

This volatility has stimulated efforts to spread bets and grow vanilla in less traditional areas. But are these initiatives a threat to biodiversity in themselves? “The impact on biodiversity can be both positive and negative. It very much depends on the attitudes and the policies that the companies have in place. Vanilla can be grown with respect for people and biodiversity. It can be an essential source of revenue and a reason to protect. However, if they are not responsible about this, it can have a negative impact,” Kutsch Lojenga warns. 

UEBT has also launched a new certification and trust mark for brands “that respect people and biodiversity.” Weleda Natural and Organic Cosmetics and the Ekos brand of Natura Cosmetics are the first leading brands to obtain this certification. It communicates to consumers that they contribute to a world in which people and biodiversity thrive. The new label, made up of a circular feline-inspired image representing people, plants and animals and their interdependence, will be seen on store shelves later this year.

“Through our partnership with UEBT, we have really deepened our commitment to organic and ethical sourcing over the last seven years and are very proud that, together with our customers, we can do our bit in protecting the planet,” says An Driessens, Head of Global Marketing at Weleda.

“In 2000, when Natura launched the Ekos brand, we pioneered the use of Brazilian biodiversity active ingredients, combining the best of nature and science in cosmetic products of unquestionable quality. A decade later, this commitment was further reinforced with the Amazonia Programme, guaranteeing the feasibility of a business model in which the forest is worth more standing than felled. Now we are renewing this proactive stance by communicating to our consumers the ethical and sustainable practices in sourcing these ingredients, ensuring the conservation of the forest and, at the same time, generating income for local communities,” says Andrea Alvares, Natura’s Vice President of Marketing, Innovation and Sustainability. 

Kutsch Lojenga stresses that the new label is for brands that have an approach to responsible sourcing that looks at all the different ingredient supply chains and has diligent systems for research and innovation. “Only brands that meet our requirements can carry the logo. We are first introducing it in the personal care sector. But if there were a food company interested in applying this, it would also be open to that,” he adds.

He accepts, however, that the number of logos out there is confusing to consumers and that there is a danger of “logo overload.” “For that reason, we are collaborating with The Rainforest Alliance – we have a joint program on herbal teas, in order to reduce the overload of labels,” he adds.

Despite headlines often highlighting concerns concerning disappearing biodiversity, including the falling bee population, Kutsch Lojenga remains optimistic about progress going forward. While climate change continues to be in the spotlight from a sustainability perspective, he stresses that biodiversity is just as important. “Without biodiversity, there is no life. There are no food production systems. It is a key issue. Of course, climate change and biodiversity are interconnected,” he notes.

For Kutsch Lojenga, we are reaching a tipping point as awareness of biodiversity is reaching a level that is making companies take it very seriously. “Companies can communicate about it to consumers and consumers are personally connected to the issue. Over the next years, commitments from governments around the world to increase the awareness of biodiversity, there is going to be a lot more attention and work being done,” he concludes. 

You can listen to the podcast interview with Rik Kutsch Lojenga here. 

By Robin Wyers & Laxmi Haigh