CSM Ingredients Group has published its third annual sustainability report highlighting progress made in 2023 including responsible sourcing and ethical business practices.
The business, which comprises bakery supplier CSM Ingredients as well as Italian ingredients firm Hi-Food, said it recognises the importance of aligning production and procurement processes with the principles of environmental and social responsibility in order to realise its vision of becoming Net Positive.
Former CEO Aldo Uva, who stepped down from the leadership role a few months ago, previously revealed plans to reach 100% renewable energy across all operations by 2025. In 2023, the group sourced 62% of its total electricity consumption from renewable sources, with 95% of this amount certified with Guarantees of Origin. With headquarters in Luxembourg, CSM Ingredients runs eight production facilities located in the UK, the Netherlands, Germany, Italy, Tunisia, and China, as well as four innovation centres across Europe, and a global open innovation hub in Tel Aviv.
It managed to direct 73% of its total waste toward recycling, recovery, or reuse during 2023, with significant strides made in packaging too – it scored an 87% recyclability rate for both primary and secondary packaging, and collaborations with suppliers led to the utilisation of paper containing 62% recycled content.
Another key aspect of CSM Ingredients’ sustainability approach is a focus on responsible sourcing of raw materials such as cocoa, cage-free eggs, and palm oil. Having joined the Roundtable on Sustainable Palm Oil (RSPO) in 2021, the company sourced 74% of its palm oil last year through RSPO mass balance or segregated certifications. Meanwhile, 55% of cocoa purchased in 2023 was certified under Rainforest Alliance.
New report highlights sustainability gaps in the cocoa supply chain
CSM Ingredients leveraged technology and innovation to develop healthier, more sustainable ingredients,with Magic Glaze, an egg-free wash for bakery goods, included in its NPD launches of 2023.
The business also updated its Supplier Code of Conduct last year to ensure values of environmental sustainability, human rights, and product safety were extended throughout its supply chain. It became an active member of the Supplier Ethical Data Exchange (Sedex) as well to help identify, prevent, and address risks and impacts in its value chain.
Finally, for the People pillar of its three-pronged ‘Thrive for Impact’ strategy (along with Planet and Product), 32% of the new hires at CSM Ingredients were individuals under 30 years old, who mostly replaced retirees and helped give new perspectives to the business.
“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 at 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.”
Latest annual results for the UK arm of CSM Ingredients showed a £1.4m loss for 2023 despite sales rising to £54.2m, a 5% improvement on the previous year. This was said to be down to significant increases in materials and energy prices.
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