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Sustainability advisors
CASE STUDY Orkla

Enabling ambition: How we supported Orkla on the journey to nature target-setting

3Keel worked with Orkla ASA to identify priority commodities and production locations for supply-chain engagement and action on nature.

Orkla ASA (Orkla) is a Norwegian industrial investment company operating across Europe, Asia and the US. Its brands offer consumer goods across food, health, home care and beyond. Orkla wanted to use SBTN-aligned methods to gain a deeper understanding of the nature-related impacts of raw material sourcing for its food portfolio companies and to identify priority areas for nature target-setting and action.

Our recommendations were based on an assessment of a subset of Orkla’s key commodities and sourcing regions, and included clear priorities that were aligned to SBTN frameworks.

The goal

As recognition of corporate impacts on nature increases, many companies are considering the commitments and targets they can set to reduce and improve their impacts on the natural world. Companies are also exploring how to manage nature-related risks in their supply chains, such as water stress or biodiversity depletion in key sourcing regions.

Having already set science-based carbon-emission reduction targets, Orkla ASA is now working towards establishing specific targets on nature and engaging with its supply chain to mitigate nature-related impacts and risks within its value chain.

Using the Science Based Targets Network’s framework (SBTN) as a guide, Orkla wanted to determine where its most material impacts on nature are likely to arise and which sourcing regions are most exposed to risk from degraded states of nature.

A future-proof approach

To provide Orkla with the desired insights, we conducted an SBTN-aligned analysis of a subset of its commodities. From the outset, we ensured that the analysis model we produced was a usable tool into which the Orkla team could continuously add further sourcing and raw-material data across the company’s operations.

LEAD SAMRA MARIAM

AREAS CLIMATE, NATURE & RESOURCES

CLIENT ORKLA ASA

“3Keel’s approach has enabled our ambition to properly get to grips with the nature-related impacts and risks in our value chain.”

Supporting the journey to nature target-setting

Our assessment set out to provide a robust evidence base for Orkla to understand three things in particular:

  1. The pressures it places on nature within its value chain – such as through water use, pollution and land use
  2. The existing pressures placed on nature in its sourcing regions – for instance, limited water availability or high rates of land-use change
  3. The condition and importance of biodiversity within these regions

To analyse these, we collected primary data from Orkla on commodities and countries of origin. We added robust secondary data on potential impacts and the state of nature and biodiversity in its raw material sourcing locations.

We then combined this information with insights on data availability and strategic significance to recommend priority commodities and sourcing locations.

“3Keel’s knowledge and expertise of the SBTN framework has been invaluable,” said Lars Lundahl, Environmental Manager at Orkla Foods Sverige & Orkla ASA. “Setting targets for nature begins with understanding the pressures exerted on nature by business operations. This is a challenging task for a company with a portfolio as diverse as Orkla.

“I’m pleased to say that 3Keel’s approach has not only been eminently practical, but has also enabled our ambition to properly get to grips with the nature-related impacts and risks in our value chain.”

The output

In line with Orkla’s aim to understand the nature-related impacts and risks in its value chain, we identified and recommended a subset of priority commodities and sourcing locations for nature target-setting and action.

We based this on the extent of the impact on the natural world, the potential for exposure to upstream risk in Orkla’s value chain, and the strategic significance to the organisation. While multiple considerations informed prioritisation, our final report indicated key drivers, enabling Orkla to understand the value-chain risks and impacts most important for them to tackle.

“From day one, we have felt fully supported by the 3Keel team on our journey towards setting targets and making commitments to reduce our impact on the environment.”

Using the SBTN framework as a methodological guide

Complying with the requirements of the SBTN framework is a challenging feat for a company like Orkla, which sources a diverse range of raw materials across multiple and varied locations.

For companies that don’t yet have the extensive raw data required for SBTN targets validation, we’ve found that using the framework as a methodological guide can be of great value. Rather than complying with it to the letter and seeking formal validation in the first instance, we follow the ‘Assess’ and ‘Prioritise’ stages to inform a pragmatic strategy.

Indeed, assessing a subset of strategically selected commodities is an invaluable first step on the journey towards robust nature target-setting.

Looking ahead

Informed by this work, Orkla is now taking focused and informed action to support nature within the recommended value chains. This includes developing formal nature targets and identifying opportunities for engagement in prioritised sourcing locations.

“From day one, we have felt fully supported by the 3Keel team on our journey towards setting targets and making commitments to reduce our impact on the environment,” Lundahl continued.

“The team’s analysis, advice and communication throughout the project has been transparent and rigorous, while the recommendations we received were clear, comprehensive and actionable.”

Get in touch

If you’d like to find out more about 3Keel’s work in this area, please contact Samra Mariam by calling the office on +44 1865 236500 or by using the form below.

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