Recent data shows that juice volumes traded sustainably have increased by 10% year on year. The latest monitoring under the Sustainable Juice Covenant, a platform of sector leaders that have committed to the target of 100% sustainable sourcing by 2030, highlight the efforts that have been taken by the Covenant members. The two largest traded commodities under the Covenant are orange juice and apple juice.
Juice volumes are recognized as sustainable if they meet the requirements of the standards that are agreed up front by all members of the Sustainable Juice Covenant (SJC). For example, FSA bronze is recognized for farm-level, which includes both social and environmental criteria, and SA8000 and ETI/SMETA 4-pillar is recognized for any level of processing. Progress against a series of stepwise sustainable sourcing targets is reconciled on an annual basis by PwC (PricewaterhouseCoopers).
In 2019, a total of 4.5 million MT of single-strength juice equivalent was traded under the SJC, with 22% traded sustainably. This represents a two-percentage point increase on the 20% traded sustainably in 2018, with a slight decrease in the total 4.7 million MT traded in 2018. However, the volumes traded sustainability between 2018 (923 million MT) and 2019 (1.013 million MT) have increased by almost 10%. This is where the SJC is designed to have impact – increasing the volumes traded sustainably in global juice supply chains.
We are very proud to be a member of this fast-growing covenant. Only together we can boost sustainable trade ambitions into a mainstream status for our juice industry. For a 3rd year in a row, we are on track to achieving the targets set; the Covenant has set realistic goals and is a platform to facilitate this journey
With all globally traded fruit and vegetable derived juices, purees, and their concentrates being in scope under the SJC, the target of 100% sustainable sourcing is a significant strategic commitment. It requires an important change in business practices, where companies need to build alignment with supply chain partners, establish systems to support reporting under the Covenant, and mobilize resources to put this into action.
The members of the SJC include some of the largest players in the global juice sector. By working within the framework and joint commitments of the SJC, the members are a driving influence in mainstreaming sustainable sourcing within global juice supply chains.
In the beginning of 2020, three new members joined: Citrosuco, Citromax and La Moraleja. Their sourcing figures have not been included in the 2019 monitoring, but their sourcing volumes will be included in the 2020 aggregate figures. Combined with the efforts of existing members, this will help boost the total and sustainable volumes traded under the Juice Covenant.
There are also some exciting projects that are being developed under the Juice Covenant. These include establishing a targeted approach to increasing sustainable sourcing volumes in specific commodities and supporting improved traceability across global juice supply chains.
As the end-goal is to increase the sustainable volumes of globally traded juice, we need to continue to build momentum within the sector. If you are in the Juice Sector, we encourage you to become a part of the Sustainable Juice Covenant.
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.