Why do we need more sustainable Juice supply chains?
Across juice supply chains, social and environmental challenges are increasingly coming into focus, presenting potential business and reputational risks to players within the sector. In addition, juice supply chains can be complex and dynamic, with inputs that are largely commoditized – this can be a challenging setting in which to make progress.
To improve the sustainability of global Juice supply chains, companies need to work together to build demand for more sustainable production.
The Sustainable Juice Covenant
Coordinated by IDH and endorsed by AIJN, the Sustainable Juice Covenant is centered on the target of 100% sustainable sourcing by 2030. This is a moral (not a legal) commitment to working collaboratively, and on a pre-competitive basis to improving the sustainability of Juice supply chains.
The Juice Covenant also presents a platform for members to share learnings on critical sustainability issues, and IDH, with its extensive experience in commodity supply chains, is well-positioned as a trusted and independent knowledge partner.
What do we count as sustainable? Sustainability is defined according to certification schemes at the farm, processing, and bottling levels of the supply chain:
- At the farm-level, we work with the Farm Sustainability Assessment (FSA) Tool and recognize production that at least meets the requirements of FSA Bronze. We also recognise standards that have been benchmarked against FSA Bronze level or higher.
- At the processing and bottling levels, we work with either ETI/SMETA 4-Pillar or SA8000.
How do we track progress? The Juice Covenant monitors progress on an annual basis through working with a third-party monitoring organization. Progress is evaluated against the following step-wise targets:
In 2018, 4.7 million MT of single-strength juice equivalent was traded under the Juice Covenant, with 20% traded sustainably. We are on-track towards achieving our targets!
Issue mitigation projects. Working together with members of the Juice Covenant, IDH can co-finance projects to address important sustainability issues in Juice supply chains, provided projects are in-line with IDH’s requirements and key sustainability themes:
- Living Wage and Working Conditions
- Gender Equality
- Smallholder Farmer Inclusion
- Responsible Agrochemicals Management
Membership of the Sustainable Juice Covenant is open to members from across the supply chain, from producers, to processors, bottlers and retail.
Under the Juice Covenant:
- Members commit to the target of 100% sustainable sourcing by 2030
- Members share knowledge and lessons learnt on addressing critical sustainability issues with other Covenant members.
- Members communicate the Juice Covenant to other players within the global juice sector, to build momentum towards sustainable sector transformation.
The Juice Covenant provides members with a clear framework for building sustainability targets and ambitions, and the opportunity to benefit from strategic support and guidance from IDH.
Progress against the sustainable sourcing targets is reconciled on an annual basis by PwC (PricewaterhouseCoopers).
In 2018, 4.7 million MT of single-strength juice equivalent was traded under the Sustainable Juice Covenant, with 20% traded sustainably.
In 2019, 4.5 million MT of single-strength juice equivalent was traded under the Sustainable Juice Covenant, with 22% traded sustainably. The volumes of single-strength juice equivalent traded sustainably increased by 10% between 2018 and 2019.
About the services offered by PwC:
PricewaterhouseCoopers Accountants N.V. (“PwC”) has written a summary report on the responsible sourcing performance of the Sustainable Juice Covenant. This report is addressed to Stichting IDH Sustainable Trade Initiative (“IDH”) and is prepared solely for their benefit. This report does not contain an audit opinion or other form of assurance in relation to the services provided by PwC or the information on which PwC’s services are provided. In that respect, PwC has provided the limited reconciliation activity but does not provide assurance over the outcomes and results.
How do you engage suppliers under the Sustainable Juice Covenant? Read the supplier engagement document explaining the requirements under the Sustainable Juice Covenant.
Ready to commit to 100% Sustainable Juice?
|The Sustainable Juice Covenant: Monitoring Protocol||Other publications||2021|
|The Sustainable Juice Covenant: Mass Balance Guidelines||Other publications||2021|
|The Sustainable Juice Covenant: Covenant Document||Other publications||2021|
|The Sustainable Juice Covenant: Governance Structure||Other publications||2021|
|Sustainable Juice Covenant Support Document||Brochure||2020|