Evaluate and Analyze The Sustainability Efforts of Competitors Danone [PDF]

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1. Evaluate and analyze the sustainability efforts of competitors Danone (stock symbol DANOY) and Mondelēz International, Inc. (stock symbol = MDLZ). Danone: Danone’s overarching mission and strategy focus very clearly on health and nutrition. In 2016, Danone has taken its nutritional charter one step further and to implement 6 nutrition commitments containing stronger, more measurable and time-bound commitments to evaluate its performance. These includes, continuously improve the nutritional quality of products, Design healthier alternatives relevant for consumers, further reinforce expertise on the understanding of local nutrition practices and public health contexts, Contribute to address local public health challenges, Develop even more responsible marketing practices, especially to children Provide the most appropriate product labelling to encourage healthier practices. The company publishes regular updates on its progress in implementing its nutrition strategy via various annual reports. Danone could further improve by undertaking formal annual internal audits of its progress in achieving its targets and ensuring that all executive managers review those audits and commit to any improvements necessary, across all relevant business functions. Danone is one of the leading natural water bottled company in the world. Their goal is to find new ways to add value to the products and stimulate the brand to encourage healthier drinking habits. Danone has invested more than € 30 million in scientific research around the correlation between hydration and health. Danone promotes sustainable water practices throughout its operations. They are determined to protect and restore natural water ecosystem in collaboration with local communities and stakeholders. Danone has a partnership with the global environmental convention Ramsar to raise awareness and promote the sustainable use and management of wetlands. Danone is committed to address undernutrition as outlined in its overarching Danone Food, Nutrition and Health charter, with further commitments set out in its policy on micronutrient fortification. Affordability and accessibility are embedded within strategic planning for the whole business, with a specific focus on low-income populations. Danone has set 2030 targets including a target to reach a specified number of consumers with affordably priced healthy products by 2030. Although Danone clearly takes the local context into account in each country, it does not yet pledge to work within regional and national frameworks in support of goals set by



the international and/or national nutrition community to address specific fortification needs and undernutrition issues more broadly. Mondelez: In 2016, Mondelez International, Inc. introduced its updated ‘Strategy Globe’ and revealed a vision ‘to be the best snacking company in the world.’ Mondelez is keen to develop new products which will focus on meeting consumer well-being needs - ‘Well-being Choices.’ It has set the goal by 2020 that half of its portfolio will be ‘Well-being Choices’ which includes ‘Better Choice Snacks’ that has better nutritional quality, individually-wrapped ‘Portion Control’ options which has less calories, and ‘Lifestyle Choice snacks’ designed to meet specific consumer needs. Mondelez has Nutrient Profiling System (NPS) which sets the criteria for all of its product and more strict criteria for its ‘Better Choices’. To strengthen the ‘Well-being Choices’, the company should carryout annual internal audit of its performance. The CEO who is accountable for the overall business strategy of which the ‘Well-being Strategy’ is an important element, Mondelez can boost this commitment by directly linking remuneration of its CEO to its well-being objectives. Global food system is facing complex challenges including shortage of clean water. Based on a comprehensive risk assessment, Mondelez have identified priority sites in areas where water is most scarce and reduce water consumption in these areas. In U.S. bakery in Fair Lawn, New Jersey, incoming water consumption was reduced by 350 million liters from 2013 to 2016 by replacing water-cooled air compressors with air-cooled units and by converting from oncethrough to closed-loop cooling water systems. The goal is to reduce water consumption by 10% in priority manufacturing areas by 2020. Mondelez is committed to play vital role in battling undernutrition in low income countries. It has established Mondelez International Foundation (MIF) which is focused on addressing dietrelated diseases among children between the age of 6 to 12. One of the main objectives of MIF is to address undernutrition in developing countries. In 2017 Mondelez updated its fortification policy by strengthening its product fortification commitments and including a commitment to consider the accessibility and affordability of fortified products targeted towards populations with micronutrient deficiencies. For example, in Philippines, the company supports the Department of Health’s fortification program to help people to identify and find out those products which are fortified with the main micronutrients that are low in local diet. Mondelez



can improve its support of public policy to address undernutrition in developing countries by pronouncing commitment and stating publicly about the actions in this area.