Accelerating the Pace of Change: 2023 Review PDF

Accelerating the Pace of Change: From Action to Impact — 2023 Review The Consumer Goods Forum Contents Co-Chairs Foreword 03 Our Global Reach 13 Join Our Coalitions of Action 28 Scaling Our Impact —...

Accelerating the Pace of Change: From Action to Impact — 2023 Review The Consumer Goods Forum Contents Co-Chairs Foreword 03 Our Global Reach 13 Join Our Coalitions of Action 28 Scaling Our Impact — From Adoption to Acceleration: Collaboration for Healthier Lives Coalition of Action  29 A 2023 Perspective 04 Moving Faster Together 15 Plastic Waste Coalition of Action 31 The Power Of Collective Action — KPMG  05 Connecting For Better Impact: Food Waste Coalition of Action  33 Cross Pollinating Across Coalitions 19 CGF Across The World 06 Forest Positive Coalition of Action  35 Elevating the Ambition: Building On Our Belief 23 Human Rights Coalition of Action  37 2023 At A Glance 07 Looking Ahead 26 Sustainable Supply Chain Initiative Coalition of Action 39  10 Our Focus For the Coming Year: Product Data Coalition of Action  41 The Five Acceleration Areas 27 Food Safety (GFSI) Coalition of Action 43 Co-Chairs Foreword A Sharpened Focus for Accelerated Ambition As we close on another complex year of challenges and well-being; ensuring human rights in supply and escalating crises in the world, 2023 may chains; advancing packaging circularity; promoting certainly feel like a global society becoming ever- deforestation-free supply chains; and moving forward more fragmented. Yet within these divides, we at on net-zero emissions. Making it simpler for many Frans Muller The Consumer Goods Forum (CGF) have found a more CGF members to join these focused initiatives CGF Board Co-Chair and shared resilience in being able to collaborate and find will help drive significant progress together. President & CEO unique solutions for an increasingly complex world. Ahold Delhaize 2023 has been an undeniable year of ‘Accelerating This year, the collective efforts and commitment the Pace of Change’ for the CGF and its members. of our Coalitions of Action and members have Our journey, however, is ongoing. In response to the been showcased. They emphasise transparency accelerating challenges of climate change and social and openness in creating a more sustainable and inequality, we must adapt and innovate with systemic equitable global marketplace. We have recognised solutions, uniting our actions with a firm belief in our the power in learning from each other. capacity to drive positive change. Dirk Van de Put This has led to exceptional collaboration over the past We thank our current members for their dedication and CGF Board Co-Chair and twelve months between Coalitions, through members, leadership, which are crucial for the future of our industry, Chairman & CEO knowledge partners, and back to the communities and and welcome new members to join us in our mission to Mondelēz International consumers we serve. The eagerness to drive change create a more sustainable and responsible future. within our network is profound. This Annual Report is an invitation to all CGF As the new Co-Chairs of the CGF, we are honoured members to participate in our collective journey to lead these efforts. To sharpen our focus on the towards a more sustainable consumer goods valuable and ongoing work of the Coalitions. It industry, for our people and our planet. We look has been our pleasure to strategically engage the forward to working with our members on this CGF membership around five Acceleration Areas important matter in 2024. critical to our mission: enhancing employee health 3 Accelerating the Pace of Change: From Action to Impact — 2023 Review Scaling Our In 2023, through the dedicated efforts of our Coalitions of Action, we have achieved many of the strategic objectives that we have set. There is still a To the wider industry, we invite you to join us in tackling global challenges and championing progressive change in an exceptional setting where Impact – long way to go, but this initial set of achievements is you gain insights and best practices from peers who a testament to what we can achieve together through are committed to propelling our industry forward. collaboration. Our organisation and the way we work This collaboration is essential for broadening our now create a strong environment for our Coalitions perspectives and strengthening our collective resolve. A 2023 to succeed. We have also expanded our influence, especially in key markets like Latin America and China. Together, we all play a pivotal part in reshaping the These steps have laid a strong foundation for future future of the consumer goods sector. Perspective projects. As we acknowledge these achievements, we must also prepare for upcoming challenges. Our journey towards sustainability is driven by relentless dedication and continuous innovation. Our guiding Leveraging Coalitions as a catalyst for principle remains to advance our Coalition’s work change and pushing for broader change. To meet today’s challenges we must do more, both quickly and Over the past year, the consumer goods sector effectively. We commend our Co-Chairs for leading has navigated a complex environment shaped by our industry forward with the Acceleration Areas, changing social, environmental, geopolitical, and specifically designed for this purpose. economic conditions. Despite these significant challenges, our commitment to doing the right thing Looking to 2024, we commit to intensifying our efforts. remains unwavering. As the Managing Director of the Consumer Goods Forum, I present our 2023 Annual Report not just as a Rather than holding us back, they present us with summary of the past year, but as a reaffirmation of our a chance to deepen our commitment to working commitment to 'Accelerating the Pace of Change'— together and welcoming different views to find shifting from mere action to quantifiable impact. the best solutions. It is an opportunity to refine our strategic focus and strengthen our collaborative Our resolve to innovate, collaborate, and lead is efforts, leading to more impactful systemic change. stronger than ever. To our members, your active This year was transformative for The Consumer Goods participation has been crucial to our success. We Forum, marking strong advancements in driving encourage you to increase your involvement and sustainability and business initiatives forward at a explore new opportunities through our Acceleration Wai-Chan Chan global level, while ensuring local needs and contexts Areas. Your insights, experiences, and initiatives are Managing Director were addressed. key to our shared success. The Consumer Goods Forum 4 Accelerating the Pace of Change: From Action to Impact — 2023 Review The Power No one has all the answers to address the economic, social and geopolitical issues that the world is currently facing, which is why of Collective cross-industry cooperation on sustainability issues is crucial in finding shared solutions. At KPMG, our belief is that professional services providers can make an active contribution to Action — this cooperation by providing an independent external perspective in ongoing industry conversations. By connecting the dots of our KPMG collective experience in sectors outside of the consumer goods industry, we can help unlock further value by sharing leading practices and innovations. KPMG is proud and committed to its role in helping to achieve this impact and to contribute to accelerating the collective action of The geopolitical and climate events of the past consumer goods manufacturers and retailers in year have further exposed the fragility of the global achieving a secure and sustainable future. food system and shifting expectations on the role of business in society. By bringing together consumer goods manufacturers and retailers, The Consumer Goods Forum seeks to secure “Better Lives Through Better Business” and actively drive positive change across the industry. In doing so, its members are contributing to create a more sustainable future for people and the planet. Throughout this year’s annual review, you will find tangible evidence of the power of collective action and the accelerated impact that can be achieved when people and organisations come together and focus on a common goal, such as the 9 Coalitions of Action. KPMG Isabelle Allen International is pleased to have been able to play a part Global Head of Consumer & Retail in bringing their progress to light again this year. KPMG International 5 Accelerating the Pace of Change: From Action to Impact — 2023 Review CGF Across The World Our 9 Coalitions of Action Collaboration for Plastic Waste Forest Positive Healthier Lives Food Waste Net Zero Empowering people to Playing a leading role in Reducing food waste Taking collective action for Accelerating emission live healthier and more eliminating plastic on land through a global a forest positive future. reductions. sustainable lives. and in sea. commitment. Sustainable Human Rights Supply Chain Product Data Food Safety Initiative Making Human Rights Due Enhancing data exchange Diligence (HRDD) the industry Building trust in social and Delivering safe food for and improving accuracy. norm across own operations environmental sustainability people everywhere. and supply chains. standards worldwide. 12 374 Power of Collaboration 177 Asia-Pacific Total Members EMEA Members 53 59 North America Members Japan Members $221 305 406 272 Members 30 Total estimated annual revenue by Accelerated Action China members: Members 31 LATAM 60 Impact at Scale Members Board Members 31 leaders Driving Ambition Coalitions Leadership 6 Accelerating the Pace of Change: From Action to Impact — 2023 Review 2023 At A that they remain dedicated to advancing the priorities of their chosen Coalitions, while navigating their organisations’ own challenges. to remove deforestation, forest degradation, and conversion from key commodity supply chains. Glance With its Golden Design Rules embedding ever- In embracing the goals of our 8 Coalitions of Action — further into industry practice, the Plastic Waste and with the imminent rollout of our Net Zero ninth — Coalition continued to prove with its flagship both members and Board alike have continued to framework that drives rapid action. Simplicity that drive both regionally-specific and globally-connected must accelerate systemic change in packaging change; collaborating to unlock new perspectives and design and the recycling process, keeping plastics The Consumer Goods Forum (CGF) has always share experiences that accelerate tangible industry out of the environment and in the economy. It is in remained distinct in its approach: uniting consumer transformation, based on sound business sense. this shared simplicity that the Coalition calls for more goods manufacturers and retailers from across accountability in building a circular economy for the world to connect industry silos and drive Three years into delivering its Theory of Change packaging. collaboration toward a more sustainable future and approach, the Forest Positive Coalition continued shared business value. to prioritise the sourcing of deforestation and In an industry powered by product data and conversion-free goods in supply chains and transform inextricably linked across our Coalitions, it comes as This year, 2023 met us head-on with its own unique commodity production landscapes into forest positive little surprise that the Product Data Coalition remained approach, revealing mounting environmental areas. Presenting its third annual report detailing the an essential enabler of work streams undertaken by concerns, escalating political conflicts, economic progress enabled through collaboration, transparency CGF members in 2023. Within its own wheelhouse, instability and significant humanitarian crises — all and monitoring, the Coalition achieved a 13 percent the Coalition doubled-down on advancing its Leapfrog placing unprecedented pressure on consumers and year-on-year increase on overall KPI disclosure. With initiatives, Global Data Model and 2D barcode the industry at large. Yet in the face of such turmoil, 78 percent of 23 landscape initiatives now invested in roadmaps — innovating new ways to share data, the CGF and its members find strength; the strength to by two or more Coalition members, they demonstrate elevate experiences and drive adoption for consumers deepen commitments and collaborate with meaning — how joining forces accelerates systemic efforts and companies at local, regional and global levels. advancing global action and accelerating local impact to secure a more sustainable future, for all. It is here that 2023 becomes a year of change in its own right for the CGF. A change in gear as our Coalitions move from action to acceleration. A changing of the guard with our new Co-Chairs — and a change in approach, as they lead a refined strategy for the next two years with five ‘Acceleration Areas’ and the introduction of a ninth Coalition of Action, Net Zero. Driving our Coalitions of Action The past 12 months have also been witness to the changing landscape in which our member companies operate. It is testament to their resolve and passion 7 Accelerating the Pace of Change: From Action to Impact — 2023 Review The Food Waste Coalition continued its drive to halve Processing Scope. The need for certification scheme food waste by 2030. With a focus on knowledge harmonisation never ceases, but its tangible results in sharing for action, its goal is to motivate waste a complex sustainability landscape are testament to a reduction strategies across the whole supply chain Coalition truly accelerating. and contribute to meeting net zero ambitions across emission Scopes 1-3. In 2023, the first Coalition Another Coalition focused on leading industry Baseline report marked a significant step in effective actions, the Human Rights Coalition furthered its reporting and accountability — while its partnership collaboration to make Human Rights Due Diligence with WWF brought new focus upstream, working (HRDD) the industry norm throughout business directly with growers to measure post harvest losses. operations and supply chains. In 2023, their People Downstream, it launched the ‘#TooGoodToWaste’ Positive Palm project deepened engagement with campaign aimed at inspiring consumers to reduce Malaysia’s recruiters, employers and government. Its household food waste. focus remains resolute: to ensure Workers’ rights are protected, respected, and remedied at every step of In another solid year for the Sustainable Supply Chain the global value chain. It was with this message that Initiative (SSCI), its Coalition members marched ever- it hosted over 200 palm oil industry stakeholders closer towards harmonisation in a diverse field of across four workshops, with the inaugural session sustainability standards to support organisations with opened by the Deputy Prime Minister of Malaysia. It their due diligence. In the lead up to the Sustainable doubled-down on its message later in the year with Retail Summit in Copenhagen, the SSCI consulted a Southeast-Asian conference of more than 250 with stakeholders on a new Environmental Benchmark participants, focused on promoting the responsible which defines minimum requirements for how recruitment of migrant workers. environmental certifications should operate. In other successes, the Coalition welcomed new certification schemes and monitoring programmes Want to learn more about our Coalitions of for benchmarking: The Rainforest Alliance, amfori- BSCI and FSSC 24000. Joining the growing list of Action in 2023? trusted and credible standards that members can use, a third scheme achieved its SSCI Recognition — Click here becoming the first to be recognised globally under the SSCIs Primary Production Scope & Manufacturing and 8 Accelerating the Pace of Change: From Action to Impact — 2023 Review The Collaboration for Healthier Lives Coalition delivered powerful multi-stakeholder collaborations, as members continued to launch winning-behaviour initiatives for employees and consumers across Asia, the Americas, Europe and the Middle East. The Year of Employee Well-Being Campaign in 2023 raised support from Board CEOs & C-suite level executives through CEO advocacy, case studies, podcasts, masterclasses and blog posts. The Coalition continued its focus on shared learnings and best practices, including the publication of a playbook and case-study repository on building impactful initiatives to drive behavioural change, alongside the collaborative development of supporting pilots around digital solutions for preventative health. Continuing to raise the bar on audit integrity is critical to the functioning of the food safety ecosystem. The Global Food Safety Initiative (GFSI) made significant progress putting in place vital interventions via its ‘Race to the Top’ framework to ensure that food safety certification can be trusted. The role that GFSI plays in building food safety capability was also brought into sharp focus in 2023, with the relaunch of the New GFSI Global Markets Programme and the signing of an MoU between GFSI and USAID to support smaller food producers in Africa deliver safer food for all. These themes were a focus the Coalition drove home at their GFSI Conference 2023 in Atlanta, attended by 700 delegates from 50 countries. From global-scale perspectives to local-level collaboration, the CGF’s regional offices across Latin America, China, Japan, North America and EMEA remained proactive in engaging local members with Where 2022 was a year for elevating action, 2023 Acceleration Areas and the new Net Zero Coalition, new opportunities to expand insights, adapt actions showcased the possibilities of accelerating our pace 2023 sets our Coalition sights on driving focused and accelerate impact where it matters most: for the of change. With a refined strategy and renewed actions faster, together. consumers at the heart of our industry. focus through the announcement of our five key 9 Accelerating the Pace of Change: From Action to Impact — 2023 Review  Refining Our Strategy: Stepping Up Our Ambition In 2023, we undertook a comprehensive strategy review, acknowledging the urgent need for accelerated action. This led to the launch of new Acceleration Areas at the Global Summit themed 'The Pursuit of Harmony In Turmoil,' aimed at driving rapid and significant change within our industry. Embracing our core values of collaboration and unity, we, alongside our CEO-led Board of Directors and committed members, are navigating a path of collective learning and bold action. The selection of Kyoto, Japan, for this year's Global Summit was emblematic of our goals. CGF Managing Director Wai-Chan Chan highlighted this in his opening remarks to delegates from 33 countries and over 250 member companies: 'What better country to find inspiration from than Japan, because harmony is the very essence of the culture here; collaboration one of its core values.' This perspective underscores our commitment to overcoming challenges and fostering a harmonious future. A Refined Focus for Accelerated Action Finding harmony at the helm as new Board Co-Chairs of the CGF, Frans Muller, President & CEO of Ahold Delhaize, and Dirk Van de Put, Chairman and CEO of Mondelēz International, announced their ambition to drive focused actions faster and further over the next two years — and in doing so, elevate the collaborative strength of the CGF’s well-established Coalitions of Action. 10 Accelerating the Pace of Change: From Action to Impact — 2023 Review  Recognising both the diverse nature of the CGF’s Our Coalitions of Action are foundational in global membership and the regional pressures our quest for change, leveraging deep insights Collaborate and be part of the wider and priorities each member company faces, the and collective efforts. The launch of the five solution…we are highly dependent on new Co-Chairs defined five ‘Acceleration Areas’ Acceleration Areas sharpens this mission, working with each other…you cannot to recalibrate focus and scale-up the speed of accelerating essential changes in critical fields. This systemic change continuously driven by the CGF’s dual approach magnifies our impact, driving faster deliver on your ambition alone. dedicated Coalitions. progress toward our goals. As Dirk Van de Put, CGF Board Co-Chair and Chairman Dirk Van de Put & CEO of Mondelēz International, defines it: “I see CGF Board Co-Chair and Chairman & CEO Mondelēz International The 5 Key Acceleration Areas: these Coalitions as think tanks of leading experts coming up with the theory of change: we get some of the best thinking available, we invest resources in Maintaining deforestation and formulating how we are going to make progress as Conversion Free (DCF) supply approach an industry…and the participating companies are very for a more Forest Positive future involved and dedicated to the subject. “At the same time, we need shorter-term, clear targets that more companies can adopt to drive Adopting the Golden Design Rules (GDR) change faster. That’s why we formulated these to enable a circular economy and reduce five acceleration areas, designed to make it Plastic Waste more inclusive and simpler for companies to join initiatives within the perimeter of the Coalitions of Action. Our ambition is to drive change faster at Embracing Human Rights Due scale with more industry players.” Diligence (HRDD) in operations and supply chains The element of speed is essential… Acceleration is vital to driving a positive and Establishing employee wellbeing programmes to support employee health scalable impact that takes accountability for and empower Healthier Lives our people and the planet. Accelerating emission reductions for a Frans Muller Net-Zero future CGF Board Co-Chair and President & CEO Ahold Delhaize 11 Accelerating the Pace of Change: From Action to Impact — 2023 Review Introducing the Net Zero Coalition In addition to the new Acceleration Areas, 2023 also ushers in a ninth new Coalition of Action: Net Zero. Rooted in the CGF’s role of becoming an official accelerator of the United Nations’ Race to Zero campaign back in 2021 — which today notes 60 CGF members pledging to cut their Greenhouse Gas (GHG) emissions in half by 2030 (putting them on track to reach net-zero by 2050) — the Net Zero Coalition unifies the diverse decarbonisation initiatives woven across our 8 Coalitions of Action and cements its own guiding star. The Net Zero Coalition of Action is dedicated to:  ccelerating the consumer goods A industry’s commitment to reducing GHG emissions  nhancing the industry’s internal E capabilities to achieve Net Zero We have also scaled the Net Zero Coalition and As Frans Muller, CGF Board Co-Chair and president Improving how we report and monitor made part of it into an Acceleration Area, enabling & CEO of Ahold Delhaize, affirms: “Participation progress through standardised, participation by CGF members worldwide, at any within the CGF is about making an active meaningful KPIs stage of their sustainability journey, to effectively contribution and leaving a mark. Success on this address critical challenges. journey is a collective effort, requiring us to share knowledge and collaborate on projects to achieve It is here that the Acceleration Areas become not critical mass.” It is by combining the ongoing work  romoting collaboration between the P just a set of goals, but a powerful alignment of of our Coalitions with the more immediate-term CGF’s other Coalitions of Action and short term, fast-burst actions designed to drive Acceleration Areas strategy that the CGF becomes the broader Race to Zero network accountability both individually and collectively greater than the sum of its parts, harnessing towards accelerated, systemic change. harmony in the pursuit of lasting impact. 12 Accelerating the Pace of Change: From Action to Impact — 2023 Review Our Global Reach From shaping global strategies to implementing regional initiatives, our regional events are critical to how CGF members collaborate. Both virtual and in-person, they ensure best practices are shared, progress is tracked, and local stakeholders and government are engaged to help drive change and accelerate positive impacts in their region. E2E Springboard Workshop Virtual & Online 17-19 Jan 2023 CEO & Expert Masterclass Taking Stock of Employee Future Leaders CEO & Expert Masterclass CEO & Expert Masterclass New York, USA Series on Employee Well- Well-Being Campaign on Programme Series on Employee Well- Series: Ahold Delhaize Participants: 29 being: Migros Ticaret World Mental Health Day November 2023 being: Grupo Éxito 8 December 2023 GFSI Annual Conference 20 September 2023 10 October 2023 Participants: 48 23 November 2023 Participants: 122 24-27 April 2023 Participants: 150 Participants: 73 Atlanta, USA Participants: 700 2023 Global Summit EMEA 6-9 June 2023 Japan North Kyoto, Japan America China Participants: 1000+ Japan Day 2023 31 August 2023 Tokyo, Japan E2E Springboard Workshop Malaysia Participants: 200 27-28 March 2023 LATAM Mexico City, Mexico Participants: 43 E2E WinterComes Supply Sustainable Retail China Day 2023 E2E Springboard Workshop Chain Conference Summit 20-22 March 2023 7-8 September 2023 25-29 September 2023 18-20 October 2023 Shanghai, China Bogotá, Colombia ‘Advancing the Participants: 584 Sitges, Spain Copenhagen, Denmark Participants: 35 Responsible Recruitment Participants: 38 Participants: 200+ of Migrant Workers Environmental in Southeast Asia’ Benchmark Showcase Roundtable 18 October 2023 6 September 2023 We look forward to seeing you at Copenhagen, Denmark Kuala Lumpur, Malaysia the next Global Summit in Chicago, Participants: 26 Participants: 250+ USA on the 11-14 June 2024. 13 Accelerating the Pace of Change: From Action to Impact — 2023 Review From Our In EMEA Collaboration is now more than ever crucial…To accelerate on these big changes that we Members are facing, it is certainly not easy to bring everyone around the table — but it is giving us the ability to bring more impact and more scale to what we have to do…together we can go much further than we can alone. Around the Ayla Ziz, Senior Vice President Global Sales, Chief Customer Officer, Danone World… In China The digital age [presents us with] a lot of new opportunities and challenges. The CGF is a very good platform for retailers to communicate with manufacturers around the world. Dr. Zhang Wenzhong, Founder, Wumart Group In Japan We are proceeding with the Ajinomoto Group In North America Creating Shared Value plan (ASV), which places We're all looking at problems that we have some shared interest in. And therefore, you great importance on re-inputting economic see other people's perspectives and that generates a lot of new thinking, and you see value into solving larger social issues. The CGF’s new opportunities for yourself for your own company or collectively for the industry. various initiatives are about how to solve these James Quincey, social problems, and how we can work together Chairman & CEO, The Coca-Cola Company as an alliance to do things that cannot be done by one company alone…Member companies can leverage their uniqueness to participate In The Middle East And North Africa in Coalitions that they are interested in…it is a This is the only forum where you can bring manufacturers, CPG companies — even voluntary membership. This better strengthens suppliers and farmers — and retailers under the same roof to tackle exactly the same the meaning of participation. issues…there’s just not this opportunity anywhere else. Taro Fujie, Hani Weiss, CEO, Ajinomoto Group CEO, Majid Al Futtaim Retail 14 Accelerating the Pace of Change: From Action to Impact — 2023 Review  From Adoption to Acceleration: Moving Faster Together Last year, CGF and its Coalitions of Action maintained momentum by expanding regional outreach and implementing local actions that are impactful. We focused on priority areas and reporting targets, strengthened cross-Coalition collaboration, and adjusted our actions and strategies to meet emerging needs. In 2023, the view may indeed have looked very different from each Coalition; not all move at the same speed as each addresses its own set of unique challenges and opportunities. Member companies also remain at various stages of their own sustainability journeys — committing time and resources to the CGF while navigating the needs of their own organisations. Yet 2023 upped the ante on efficiency and impact — showcasing CGF member’s ability to move faster and further, together. It is here that we recognise 2023 as a year of ‘Accelerating the Pace of Change’; of shifting from action to impact. 15 Accelerating the Pace of Change: From Action to Impact — 2023 Review Sharing Knowledge for Shared Success The win-win here was clear: the Coalition advanced With its Golden Design Rules rapidly becoming the its systemic efforts to remove deforestation and go-to guide for redesigning packaging and increasing In the face of ongoing industry challenges, the conversion from key commodity supply chains by recycling efficiency within the industry, the Coalition’s collective expertise provided by Coalition members sharing its knowledge and providing actionable experience in creating and sharing simplified became ever-more valuable in accelerating shared guidance. In doing so, both company and Coalition frameworks focused on a ‘less is more’ approach to objectives to impact both individual company and contributed toward accelerating the same objective. accelerating change. wider Coalition objectives. For Amin and pladis Global, it translated into trusted support backed by collective insight. For the As Galen Weston, Plastic Waste Coalition Co-Chair In relation to the Forest Positive Coalition, and Chair at Loblaw Companies, explains: “If you pladis Global’s CEO, Salman Amin, described Coalition, it added tangible action to its mission for a forest, climate, and people-positive future. have a couple of like-minded people getting together the importance of his access to cross-Coalition to break the back of a problem — it is once you've knowledge in accelerating the British foods achieved that, that you can then start to export it $1.8TN company’s deforestation journey: “Each time we to others…Demonstrating that we can put together interact with the CGF, we discover new capabilities. blueprints that can make a serious impact in changing This year, we have been preparing for our compliance the way that these systems work for the better. That’s with EU’s deforestation regulations, and discovered …of collective market value from 21 members what our focus needs to be.” the immense knowledge and insight that the CGF has exists to collaborate with in the Forest Positive in its Forest Positive Coalition to guide us through this Coalition By combining tried-and-tested blueprints with a big task…another accelerator for us as we implement trusted third party — as the Coalition has in its our roadmap.” partnership with the Ellen MacArthur Foundation — acceleration through accountability prevailed. As Amin’s conclusion is particularly telling of the passion Barry Parkin, Plastic Waste Coalition member seen within the Coalition and CGF members at large and Chief Procurement and Sustainability Officer in 2023: “The CGF helps us to meet our goals better at Mars, highlights on their relationship with the We invite others to join us so we can and faster. As we come up with new solutions, I hope Foundation: “They have basically set the rules of accelerate this vital work to protect and that we can inspire other members, too. The CGF is the game; the targets for the industry…They are the regenerate our spectacular forests across the perfect environment for this cross-pollination to critical friend…A strong third party that is respected, take place.” the globe. that’s holding the industry to account…you need Winning Through Sharing and Replicating those things in place if you’re going to make progress.” Emily Kunen, It is in this cross-pollination of knowledge that the Forest Positive Chair and Senior Director of Plastic Waste Coalition accelerated its own journey Sustainable Agriculture, PepsiCo in building a circular economy for packaging in 2023. 16 Accelerating the Pace of Change: From Action to Impact — 2023 Review  For the Plastic Waste Coalition, moving the needle Participating in the Plastic Waste Coalition is vital for CPG companies. We recognise in 2023 was about creating positive accountability. It was also about simplifying, standardising and sharing blueprints for change. But most importantly for its 97% members both new and existing, it was about active …of Plastic Waste Coalition member companies that we are all in this together — not just have integrated the Golden Design Rules into big companies like Colgate but smaller contribution. As Mars’ Barry Parkin attests to: “The only prerequisite for joining is that you are committed their decision-making processes. companies, too. It is critically important for to action.” smaller organisations to participate and benefit from the established frameworks Measuring The Speed of Progress built by Coalition members and learn now Being ready for action and delivering an impact were In 2023, the Food Waste Coalition focused on to demonstrate the positive impact of equal table stakes for the Food Waste Coalition this three priority actions: reducing plastic waste. year. Faced with one of our world’s most damaging environmental, social and economic issues,  ccelerating the measurement and A accelerating food waste and loss reduction remained public reporting of food loss data. Noel Wallace high on the agenda for the CGF Board and our Chairman, President & CEO, Colgate-Palmolive Coalition members. Being ready for action and delivering an impact  caling-up their ‘10x20x30’ initiative S were equal table stakes for the Food Waste with Champions 12.3, focusing on In 2023, that progress was accelerated by bringing Coalition this year. Faced with one of our world’s 10 leading food retailers and providers accountability to the forefront of the Coalition’s most damaging environmental, social and economic each engaging 20 suppliers to halve approach. In doing so, sharing blueprints and issues, accelerating food waste and loss reduction food loss and waste by 2030. underlining tangible results with smaller and less remained high on the agenda for the CGF Board mature member companies proved that cost savings and our Coalition members. Challenged by ever- could be accelerated, too. shifting local, regional and global needs, finding  ddressing food loss at harvest and A shared consistency to communicate and collaborate post-harvest levels through effective As Weston details: “I can say that Walmart’s doing effectively was key to the Coalition’s ability to deliver prevention strategies. it. P&G are doing it. Coke and Pepsi are doing it. new speed. As Janelle Meyers, Coalition Co-Chair and You’re in good company. We’ve done the first half of Chief Sustainability Officer at Kellanova, explains of the R&D, so the cost of this change is going to be a the Coalition’s structure: If we can find a solution that lot lower for you than it would’ve been if you were allows us to adopt a common language and a common starting from scratch.” understanding for discussing what works and what doesn't, it will undoubtedly benefit everyone. So, that is what we are aiming to achieve. 17 Accelerating the Pace of Change: From Action to Impact — 2023 Review It was within this commonality that the Coalition could begin to identify overlap: of challenges, actions and opportunities. In doing so, they could begin to measure. As Meyers continues: “The fact that we’re all reporting against the food waste and loss reporting protocol [allows us to] pull insights and a baseline together. We will now be able to measure our progress year-over-year as a collective as well as individuals.” 87.5% …of Food Waste Coalition members are actively collaborating with supply chain partners to reduce food loss and waste. Source: ‘Towards the 2023 Food Waste Commitment: Setting our Coalition Baseline, 2023 Report’, The Consumer Goods Forum Measurement enhanced visibility for the Food Waste Coalition; visibility that connected the dots of collaboration and revealed new routes to unlock future impact at scale. As Meyers underlines, this was critical for a Coalition who “...are all in different places within their journey from all different parts of the world.” In 2023, acceleration manifested in various ways. Though the methods were subtle, they significantly sped up change within our Coalitions. By sharing and replicating these strategies, we can enhance our collective impact in the future. 18 Accelerating the Pace of Change: From Action to Impact — 2023 Review  Connecting For Better Impact: Cross Pollinating Across Coalitions Collaboration has always been at the forefront of the CGF; it is through our unified approach that we fuel our actions to drive systemic change. In 2023, CGF members pushed our boundaries of collaboration further, revealing new opportunities to align in their collective efforts. In doing so, they strengthened connections both within and between our Coalitions, as well as out to their own organisations. Recognising That We Don't Have All the Answers This year’s collaborative strength came not just in how our Coalitions connected, but in how our members connected through sharing humility. This was spotlit in the Sustainable Supply Chain Initiative (SSCI) Coalition, as Jessica Meisinger, Coalition member and Global Sustainability Lead at MSD Animal Health underlines: “You have to be vulnerable. It takes some humility. But you realise that you can learn — you can also teach — and know that we are way further in some areas than in others…We need the sustainability person. We need your supply chain person in this; the person who does this on a day-to-day basis and knows. We want them there. It isn’t intimidating once you show up.” 19 Accelerating the Pace of Change: From Action to Impact — 2023 Review  Collaborating Across Coalitions It was with these reframing of perspectives that the Human Rights Coalition drew additional inspiration There has to be a way to make compliance Echoing Meisinger’s view and the approach taken in 2023, accelerating actions in Southeast Asia to easier so that it is not just more and more by the SSCI Coalition, the Human Rights Coalition make Human Rights Due Diligence the industry norm showed how essential cross-Coalition collaboration throughout business operations and supply chains. workload on the supplier’s shoulders. was for them in 2023. Ensuring human rights remain Something like the SSCI takes a level of By connecting the Coalition’s own Human Rights at the forefront of everything The Consumer Goods agenda with other critical Coalition interests — from complexity away, and that can be very Forum does, the Coalition worked collaboratively the removal of deforestation, forest degradation and helpful. to reframe the removal of deforestation work conversion from key commodity supply chains work, undertaken by their Forest Positive Coalition to food waste to healthier lives — they unlocked peers — adding a people-focused lens to its already doors to explore broader collaborations and drive Jessica Meisinger well-established environmental focus. future impact at regional and international levels. Coalition member and Global Sustainability Lead Further cross-Coalition collaboration was highlighted MSD Animal Health by Cécile Béliot, Bel Group’s CEO and CGF Board member, who spoke from the perspective of the The Coalition’s approach in embracing the shared Healthier Lives Coalition: unknown to drive collaboration accelerated tangible results in 2023. Notably, with its third scheme achieving full SSCI Recognition and the Coalition’s announcement of its new Environmental Benchmark, We need to talk about food as a human officially launching in 2024. The impacts of both will enable our industry to build trust further into supply right, and about the need for a solidarity chains, with simplified clarity driven by the SSCI’s system uniting all — governments, retailers social and environmental Benchmark. and producers — to ensure universal access In working to simplify the complexity of implementing to healthy and sustainable food…I want us sustainable supply chains, the Coalition showcased to align our commitment to building bridges the shift of pace possible by uniting perspectives and and fostering collaboration instead of sharing efficiencies. As Meisinger concludes: “None resisting change in silos. of us live in a bubble… We can move faster if we take the learnings and decisions that have already been made and apply them ourselves; that makes more sense than coming up with our own.” 20 Accelerating the Pace of Change: From Action to Impact — 2023 Review The key to that future, is in ensuring solid advocacy the critical role of collaborative efforts among key continually drives systemic change; in recognising industry players in promoting the consumption of there is no roadmap and that what lies ahead If there’s a solution around sustainable healthier and more sustainable dietary options. remains complex. packaging, let the whole world benefit out The results spoke for themselves. The initiative For a Coalition growing in both members and drive, of it…Let’s make it available, let's make it evolved and was rolled out every Monday in 2023 was a year of navigating that complexity with accessible, and then work together with Carrefour stores across France. The impact on sales passion and purpose as driving forces. As the Human retailers to reduce the cost…Collaboration is translated to a comparative increase of 189 percent Rights Coalition is right to remind us all: modern key. There is no doubt about it. for activated products. “What this proves,” concludes slavery exists in our supply chains. Working together Béliot, “is that not only can you do something that is to combat it must remain mission critical. good for the planet and good for people’s health, but also generates sales results.” Driving Tangible Results Hani Weiss CEO, Majid Al Futtaim — Retail The collaboration between multiple manufacturers In 2023, our Coalitions continued to focus on including Bel Group and Carrefour France delivering tangible, real-world outcomes. exemplifies genuine collaboration in promoting The in-store and digital initiative Béliot refers to, ‘Le Lundi C’est Veggie’, was originally conceived healthier and more sustainable lifestyles. This In the Collaboration For Healthier Lives Coalition of within the Collaboration for Healthier Lives Coalition, prioritising health, consumer interests, and Action CGF Board members Cécile Béliot, CEO of Bel Coalition of Action by Co-Chairs Danone and business growth, embodies collaboration that yields Group, and Hani Weiss, CEO of Majid Al Futtaim — Carrefour. This initiative, involving Barilla, Bel, measurable outcomes. It significantly influences both Retail — the exclusive franchise operator of Carrefour Bonduelle, Fleury Michon, Happyvore, Labeyrie, the enhancement of public health and the market in 31 countries across the EMEA and Middle East Nutrition Santé, Savencia and Unilever, was performance of healthier product options. As Weiss and North Africa regions — exemplified effective recognised with the prestigious SIRIUS Award in concludes: “Since we’ve collaborated in Healthier collaboration. Their efforts not only advanced the Sustainable Collaboration. Awarded on November Lives, our business and goals have completely mission to promote healthier lives for consumers but 24th, 2022, in Paris, the accolade underscores changed for us.” also demonstrated a positive impact on sales. “Promoting healthier habits is also a priority challenge where acting alone does not lead to the same opportunities,” begins Béliot. In 2022, “...in France, Bel [Group] “along with nine other food manufacturers, “... deployed an initiative with the retailer Carrefour, called “Lundi c’est Veggie” to have a positive impact on sales and consumer engagement while promoting sustainable and healthy food choices. 21 Accelerating the Pace of Change: From Action to Impact — 2023 Review  Help drive change for better lives through better business, together. Become a CGF member Tracking and Reporting Progress As Coalitions shifted from adopting actions to accelerating them at varying speeds, tracking and reporting the pace of progress became ever-more important in 2023. As Ayla Ziz, Chief Customer Officer at Danone and Co-Chair of the Collaboration For Healthier Lives Coalition of Action, explains on the importance of KPIs to align actions within Healthier Lives: “We have a clearly defined strategy and a clear vision of what we are going to achieve, aligned with all members. We set a KPI framework to support that strategy, focused on our three pillars of healthier basket growth, creating value to retail, and engaging to change consumer behaviours. We measure the business impact as well as the changed consumer behaviours.” Enhancing visibility through Coalition-specific KPIs not only enhanced alignment and measurement, however. As the only consumer-facing Coalition within the CGF, Healthier Lives deployed KPIs to start planning scaling initiatives for 2024. As Ziz concludes: “We want to have even more initiatives that are consumer-facing and very relevant locally, so we need to find levers to accelerate the scaling of these initiatives…We want to set specific KPIs on this to make sure that we are moving the needle.” Across all our Coalitions of Action, 2023 was a year firmly fixed on ensuring that needle moved. It is through our continued collaboration that it does — and through our Acceleration Areas that we look to move it further in the coming two years. 22 Accelerating the Pace of Change: From Action to Impact — 2023 Review  Elevating the Ambition: Building On Our Belief From our Board of Directors and Coalition Co-Chairs to our CGF members, in 2023 we were united by our resolve to move from action to impact. A belief in matching the pace of our industry’s most complex challenges with our own velocity. We deepened our commitment and elevated our contributions. In doing so, data remained foundational in our ability to implement, measure and impact initiatives effectively and at speed. Enabling Consumers and Our Coalitions Touching into almost every Coalition across the CGF, the Product Data Coalition enabled exceptional cross-Coalition collaboration while accelerating its own pace of change. As Ethem Kamanli, Product Data Coalition Co-Chair and Supply Chain Solutions Director at Migros Ticaret, affirms: “Every Coalition and Acceleration Area within the CGF has a deep requirement of product data — from Plastic Waste and Healthier Lives to the new Net Zero. All these initiatives require some level of data about the product, and so we try to position our Coalition as the enabler of these areas.” 23 Accelerating the Pace of Change: From Action to Impact — 2023 Review  Learn more about the Product Data Coalition’s key projects in 2024 Click here A prime example of this enablement in action was in the Coalition’s renewed acceleration of its two- dimensional barcode initiative. As Kristian Gatewood, Product Data Coalition Co-Chair and SVP of Global Data Strategy & Innovation at P&G, explains: “When a consumer scans a 2D barcode with their smartphone, we can provide them with so much more information digitalisation, we have a better chance to save this than what fits on the package. This can be a key planet. Many of the areas the CGF are prioritising can enabler for the CGF Coalitions. For example, to enable We need to make sure that the industry will be sped up by embracing GAI here.” the Plastic Waste Coalition’s efforts, 2D barcodes can answer consumers' questions about the best way to have common product data and potentially While the GAI landscape continued to evolve, Coalitions recycle a product. The more intersection points we link all that data to common ecological across the CGF remained aware of its unprecedented find with the various Coalitions, the better.” impact factors, so that emissions can be potential, both as a technology and a more conceptual calculated with greater simplicity. ‘journey’. Regardless of label, its accelerated trajectory And it is not just within the Coalitions, but the wider mapped across 2023 kept it firmly in frame for all CGF industry, too. As Kamanli offers: “If you are a small to members as we move into 2024 and beyond. medium size organisation and if you want to get a Hannu Krook better understanding of the frontier discussions on CEO, SOK Group product data and 2D, participating in this Coalition would be the simplest, most cost-effective way to do so. You just need to invest your time.” If we embrace Generative Artificial Advancing its own potential for consumers and companies in 2023, Generative Artificial Intelligence Intelligence and digitalisation, we have a (GAI) remained front of mind as a future key enabler better chance to save this planet. for the Coalition. As Wenzhong Zhang, Founder & Chairman at Wumart, offers: “As we have a lot of data, I think GAI can really reprocess, redefine and Wenzhong Zhang reorganise our business… If we embrace GAI and Founder & Chairman, Wumart 24 Accelerating the Pace of Change: From Action to Impact — 2023 Review Improving Governance Through Digitisation remained focused on its priority of improving governance. 7 Another Coalition pursuing its own digital acceleration in 2023 was the Global Food Safety Initiative (GFSI) As Mark Fryling, GFSI Steering Co-Chair and VP Coalition. In launching a data management strategy of Global Food Safety at General Mills, expanded: for an industry-first, online registry of certificates “There’s a lot of complexity and I would say that Local Groups work to implement GFSI around for all certificates issued against GFSI-recognised regulatory divergence around the world — as the world. programmes, its intention was clear: to enable opposed to harmonisation — is one of the biggest simplicity at speed for food companies and regulators challenges…We are very, very focused on building to identify who is GFSI recognised. towards a well-governed total ecosystem that Get involved delivers on this promise of safe food for everyone, As Howard Popoola, GFSI Steering Co-Chair and everywhere.” VP of Corporate Food Technology & Regulatory Compliance at Kroger, explains of its initial inspiration: The Net Zero Ninth “We have to have the assurance of retailers and manufacturers who have directed all of their supply The announcement of the new ninth coalition, Net Zero, in Kyoto was also a testament to elevating The steering committee that supports GFSI locations to be certified to a GFSI benchmarked audit. If there are food safety issues happening out of those our ambition. Climate is critical to the world, and is a very impressive group of leaders. I facilities, how could we have the trust and confidence CGF can play its own role in this domain. Also personally enjoy the interactions that we of those retailers and manufacturers? So, GFSI went by connecting into the emissions reduction and have — and have grown through — the back to the drawing board and realised that we have decarbonisation initiatives already active within building of that network. to do something different. That in itself, to me, was the existing Coalitions of Action, the new Net Zero one of the greatest achievements of GFSI in 2023.” Coalition will drive the pace on key sustainability topics — and in doing so, elevate our ambitions Combined with the progress of its wider ‘The Race To towards a net zero future. Mark Fryling The Top’ (RTTT) Framework — designed to improve VP Global Food Safety, General Mills trust in the benchmarking of third-party food safety certification, and performance — the Coalition 25 Accelerating the Pace of Change: From Action to Impact — 2023 Review Looking Ahead We understand that the challenges we faced in 2023 In the past year, we have made meaningful progress, will grow rather than subside. Our collective resilience yet we acknowledge the work that remains. We will and experience empower us to share knowledge need even greater collaboration and acceleration if and quicken our pace of change, aiming for a more we are to achieve systemic change and to live up to sustainable future in the consumer goods industry. our vision of “better lives through better business”. Let’s make the journey together. Our future actions build on the changes we have already made. This includes implementing new governance structures locally and globally; making international investments and issuing global directives; implementing human rights and well-being Looking at the nine Coalitions of Action, any initiatives; and adhering to ethical and sustainable CGF member company likely has at least practices. The work of our Coalitions is ongoing and vital to our progress. one Coalition that is applicable and important to them… pick the area that is important for you as a company and then see what is available through the CGF and The CGF’s unified front of retailers and how it can help your thinking; the progress manufacturers has become more than an that you need to make; where you can industry network; it is a powerhouse of influence, leadership and standard setting, cooperate with other members to find joint committed to making meaningful contributions solutions. at an unprecedented scale through our diverse perspectives. Our CEO collective is more than mere peer-to-peer exchange; it drives our work at Dirk Van de Put, the highest possible level. CGF Board Co-Chair and Chairman & CEO, Mondelēz International 26 Accelerating the Pace of Change: From Action to Impact — 2023 Review Our Focus For the Coming Year: The Five Acceleration Areas We encourage all CGF members to connect, collaborate and actively contribute towards our five Acceleration Areas. With a resharpening of focus, these priority areas shape our collective efforts and set industry benchmarks for the next two years. Forest Positive Plastic Waste Human Rights Healthier Lives Net Zero Integrating Sustainable Implementing Eco-Friendly Embracing Human Rights Establishing Employee Boosting Efforts to Cut Forestry and Supply Design Standards Due Diligence (HRDD) Well-Being Programmes Emissions Practices as the industry norm in Adapt to the Golden Focus on employee health Accelerate emission business operations and Mainstream Deforestation Design Rules to enable and well-being, crucial reductions to move supply chain and Conversion Free a circular economy for a productive and towards a net-zero future, (DCF) supply approach for for plastics, reducing Ensure ethical practices motivated workforce. mitigating climate impact. a forest-positive future, environmental impact. throughout the industry. ensuring the sustainability of our natural resources. 27 Accelerating the Pace of Change: From Action to Impact — 2023 Review Join Our Coalitions of Action Help drive change for better lives through better business, together. The Consumer Goods Forum (CGF) is the only organisation that brings together consumer goods retailers and manufacturers globally. With more than 400 members from SMEs to multinationals — led by our unique Board of over 60 global CEOs — we work collectively as one: driving actions that accelerate impacts on sustainable business growth, systemic change and shared business value. We invite you to join in this journey of collaboration. To unlock new perspectives, inspire industry-transforming decisions and influence change as a member of the CGF. Help lead with us in shaping the future of a more sustainable and responsible consumer goods industry, together. To explore our full member benefits: As a CGF member, you’ll gain unrivalled access to… In doing so, CGF will support you and your company with… Find out more A Global Alliance: Of over 400 influential Collaboration: Driving meaningful efforts in retailers and manufacturers committed to tackling global challenges including climate sustainable, responsible practices. change and social inequality. To discuss joining the CGF: Contact the team Key Acceleration Areas: Focused on Forest Innovation for Impact: Equipping you with Positive, Plastic Waste Reduction, Human innovative strategies that lead industry change. Rights, Healthier Lives, and Net Zero initiatives. From The Consumer Goods Forum Innovative Collaboration: Across nine Knowledge Empowerment: Sharing insights, …to everyone who contributed to Coalitions of Action, leveraging diverse best practices, and facilitating learning to stay this year’s Annual Report, we extend expertise for collective impact. ahead of industry trends. our sincere thanks for your time and commitment. All participants interviewed Industry Leadership: Putting you at the Strategic Development: Supplying the tools to for this report were in their organisational forefront of sustainable transformation in the develop impactful strategies. positions at the time of publication. consumer goods industry. Cutting-Edge Solutions: Ground-breaking A Movement for Change: Joining a collective approaches to industry challenges, from journey shaping a sustainable, equitable future supply chain sustainability to advanced data in the consumer goods industry. management. 28 Accelerating the Pace of Change: From Action to Impact — 2023 Review  Collaboration for Healthier Lives Coalition of Action Board Co-Sponsors: Frans Muller, President & CEO, Ahold Delhaize Brian McNamara, CEO, Haleon Mark Schneider, CEO, Nestlé Coalition Co-Chairs: Ayla Ziz, Global Chief Customer Officer & SVP Commercial Europe, Danone Rebecca Marmot, Chief Sustainability Officer, Unilever Ryland Allen, Vice President of Merchandising, Walmart Coalition Director: Sharon Bligh, Director, Health and Sustainability Director, The Consumer Goods Forum 29 Accelerating the Pace of Change: From Action to Impact — 2023 Review  Key Coalition Focus Areas: The Challenge:  Better options, preventative health — Improving the accessibility of healthier and more sustainable According to the World Health Organization