• 62% electricity from renewable sources
• 74% of palm oil sourced through RSPO (Roundtable on Sustainable Palm Oil) mass balance or segregated certifications
• 73% of the total waste directed toward recycling, recovery, or reuse
October 28th, 2024 – CSM Ingredients group - comprising CSM Ingredients and HIFOOD - has released its third Sustainability Report, highlighting the company’s continued progress and dedication to sustainability, responsible sourcing, and ethical business practices. As a leader in the food ingredients sector, CSM Ingredients group recognizes the importance of aligning its production and procurement processes with the principles of environmental and social responsibility, in order to realize its vision of becoming Net Positive.
This vision is embodied in the company’s “Thrive for Impact” strategy, which is built on three fundamental pillars: People, Planet, and Product.
"2023 has been an important year for CSM Ingredients group’s sustainability journey as it has allowed us to keep on building our “Thrive for Impact” strategy through a data-driven approach and an even broader governance.” commented Enrica Satta, Chief Human Resources Officer and Sustainability CSM Collective. “. Indeed, in 2023 we concentrated our efforts in building up a strong baseline to set our mid- and long-term targets, as well as redefining our strategic priorities and ESG governance within the company Furthermore, by equipping our people with the tools, policies and guidance to be able to make a positive impact daily, we are staying true to our commitment of promoting a corporate culture where sustainability is a fundamental part of our way of working."
CSM Ingredient group’s “Thrive for Impact” strategy aims to reduce waste, increase the use of electricity from renewable sources, promote diversity within the workplace, ensure ethical working conditions throughout the entire supply chain and, most importantly, drive sustainable product innovation. “Our unique approach to innovation and value creation is deeply integrated into our mission.” explained Christian Sobolta, Managing Director of CSM Ingredients group. “We champion a synergistic relationship between nature and technology, tradition and innovation, craftsmanship and science, taste and well-being, with the aim of creating an interrelated ecosystem that not only continuously advances ingredients but also the way food is produced, consumed and enjoyed.”
Responsible Sourcing
A key aspect of CSM Ingredients group’s sustainability approach is its focus on responsible sourcing, which encompasses raw materials such as cocoa, cage-free eggs and palm oil. In relation to Palm Oil specifically, CSM Ingredients group joined the Roundtable on Sustainable Palm Oil (RSPO)[1] in 2021. In 2023, 74% of the total palm oil purchased by the company was sourced through RSPO mass balance or segregated certifications. As for cocoa, about 55% of the direct supply of cocoa purchased in 2023 was certified under Rainforest Alliance[2], an international non-profit organization that champions sustainable agriculture of coffee, cocoa, tea, and hazelnut.
Advocating for Ethical Business Practices
As an ingredients manufacturer, CSM Ingredients group is aware of its central role in the food value chain, and of how much it can positively influence its suppliers upstream and customers downstream through ethical business practices. In 2023, the company updated its Supplier Code of Conduct, which emphasizes the importance of environmental sustainability, human rights, and product safety, ensuring that these values extend throughout the company’s supply chain. Additionally, CSM Ingredients group became an active member of Sedex, the Supplier Ethical Data Exchange, to identify, prevent, and address risks and impacts in its value chain.
Renewable Energy
CSM Ingredients group is making significant progress in reducing its impact on the environment. In 2023, the group sourced 62% of its total electricity consumption from renewable sources, with 95% of this amount certified with Guarantees of Origin (GOs). This achievement reflects CSM Ingredients group’ commitment to transitioning to cleaner energy and minimizing its impact on the planet.
Waste Management and Sustainable Packaging
CSM Ingredients group is committed to the principles of circular economy, striving to minimize waste production in its operations. In 2023, 73% of total waste was directed toward recycling, recovery, or reuse.
The focus on sustainability extends to the packaging used for products, with the vast majority being made from recyclable materials. Significant strides were made in this area, achieving an 87% recyclability rate for both primary and secondary packaging. Additionally, collaborative initiatives with suppliers led to the development of innovative packaging solutions, allowing CSM Ingredients group to utilize paper containing 62% recycled content.
Research and Product Innovation
CSM is committed to enabling the sustainable evolution of the food industry by leveraging technology and innovation to develop healthier, more sustainable ingredients with great taste. By leveraging its unique "R-I-D-A approach” (Research – Innovation – Development - Application) and Open Innovation framework, in 2023 the group released several product innovations including: the advanced, clean-label version developed in partnership with Alianza Team Europe of the plant-based fat system MirrorTissue® , several egg-reduction systems including the egg-free wash for bakery goods Magic GLAZE and the allergen-free system for plant-based sauces and condiments VEGANEEZ, as well as well as the clean label enzymatic fresh-keeping system FRESKO.
Positive Impact on People
CSM Ingredients group is committed to positively impacting employees' well-being to enable them to thrive in their work and personal lives. Thanks to a workforce generational mix rebalance plan, in 2023 32% of the group’s new hires were individuals under 30 mostly replacing retirees, a percentage that resembles CSM’s dedication to giving space to young talents and continually bringing new perspectives to the business.
[1] For the reporting of certified palm oil, CSM Ingredients group reports on the % of RSPO certified palm/palm kernel, and derivates used as raw material (volume based)
[2] For the reporting of certified cocoa, CSM Ingredients group reports on the percentage of Rainforest Alliance certified cocoa powder and chocolate used as raw materials (volume-based)
