Arla Foods Amba

Overall approach

3/10
- Overarching commitment on deforestation
  
  0/4
  
  Overall commitment
  
  Commodity-specific commitment - commitment that does not apply to all of the commodities the company is exposed to
  
  0/4
  
  Do they have a commitment for other non-Forest 500 commodities, if so which?: NA
  
  Which commodities does the commodity-specific commitment apply to?: Palm oil
  
  "We want to strengthen our commitment to work towards a more sustainably producing palm oil supply chain, which includes no deforestation, no new development on peat lands, full traceability to the mills including the supplying group of plantations and respect for workers’, local communities’ and human rights."
  
  Open source document
- Signatory to an initiative tackling deforestation
  
  1/1
  
  Signatory
  
  Yes
  
  1/1
  
  "In early 2008, Arla signed up to the Global Compact, the UN initiative to promote ethical business practices. As a participant, we are committed to observing the Global Compact’s 10 fundamental principles." Cerrado Manifesto Statement of Support
  
  Open source document
  Open source document
- Awareness of the value of forests
  
  1/1
  
  Awareness
  
  Yes
  
  1/1
  
  "No deforestation means - No clearance of rain forest or HCS forests - Areas of high carbon and high conservation value (HCV) shall be protected"
  
  Open source document
- Deforestation as a business risk
  
  1/1
  
  Business risk
  
  Yes
  
  1/1
  
  What type of risk is recognised?: Operational; Reputational
  
  What proportion of revenue that comes from relevant industries is exposed to each forest risk commodity?: NA
  
  "...malfunctioning ecosystems are threats to our supply chain, (mainly related to agricultural raw materials). In addition, our processing sites depend on clean and abundant water resources, energy and other raw materials. Costs and/or availability are business risks going forward. Not addressing environmental and climate challenges pose reputational risks as well."
  
  Open source document
- High-level management of deforestion
  
  0/1
- Executive compensation linked to deforestation
  
  Executive compensation
  
  No
  
  0/0
  
  Does it disclose the percentage of pay at risk?: No
- Target to reduce emissions from land-use change
  
  0/1
- Reporting on emissions from land-use change
  
  0/1
- Disclosure of conservation activity
  
  Conservation disclosure
  
  Yes
  
  0/0
  
  How many hectares of conservation area are being supported or facilitated by the company on land it does not own or manage?: 5,300 ha
  
  "In Denmark and the Netherlands, we compensate the CO2e emissions for our organic product range Arla ØKO by investing in climate projects in Eastern Africa, Brazil as well as Indonesia. In Eastern Africa, new trees are planted and in Indonesia and Brazil our investments contribute to preserving rainforest. [...]The Arla Ko® Eko range in Sweden is climate compensated by similar investments in rainforest preservation and planting of new trees. We have invested in tree planting in Uganda, and in Indonesia we support a project that preserved more than 5,300 hectares from being cut down."
  
  Open source document
- Disclosure of reforestation activity
- Target to reduce emissions in scope 1/2
  
  Reduce emissions
  
  Yes
  
  0/0
  
  Is this target aligned with/verified by SBTi?: Yes
  
  Type of climate target: Net-zero emissions
  
  What is the target date for the company to achieve their climate target?: 2030 . 2050
  
  "Arla set Science Based Targets for 2030, using 2015 as a baseline. Direct greenhouse gas emissions (scope 1) and emissions related to purchased energy (scope 2) should be reduced by 63% in absolute terms. For indirect emissions from sourcing of raw milk, ingredients, packaging materials, transportation (scope 3) the target is to reduce the carbon footprint at farm level by 30% per kg standardised milk and whey, being the most important raw materials...Beyond the Science Based Targets, Arla also has an ambition to become carbon net zero by 2050."
  
  Open source document
Commodity score

22/90
- Palm oil
  
  31/90
  - Commitment Strength
    
    14/17
    - Commitment to protect priority forests
      
      8/9.5
      - Commitment details
        Zero-gross deforestation
        
        4/6
        
        Commitment to protect priority forests
        
        Zero-gross deforestation
        
        4/6
        
        Which certification schemes are used?: RSPO
        
        When was this commitment set?: 2019
        
        "We want to strengthen our commitment to work towards a more sustainably producing palm oil supply chain, which includes no deforestation, no new development on peat lands, full traceability to the mills including the supplying group of plantations and respect for workers’, local communities’ and human rights...REQUIREMENTS TO SUPPLIERS All our palm oil suppliers are members of RSPO and source their raw material from producers who are also members of RSPO...All suppliers shall be in compliance with additional criteria, which include no deforestation, no new development of peat land and with full traceability to the mill, including supplying group of plantations"[...]"No deforestation means - No clearance of rain forest or HCS forests - Areas of high carbon and high conservation value (HCV) shall be protected - Farms and plantations shall comply with local legislation - Farms and plantations shall comply with RSPO’s criteria for sustainable production"
        
        Open source document
        Open source document
      - Commitment applies to all regions, suppliers and operation
        Yes
        
        2/2
        
        Commitment applies to all regions, suppliers and operation
        
        Yes
        
        2/2
        
        What subsidiaries are explicitly excluded?: NA
        
        What subsidiaries are explicitly included?: NA
        
        What is the rationale for any exclusions?: NA
        
        What percentage of commodity production/sourcing is excluded?: NA
        
        "We want to strengthen our commitment to work towards a more sustainably producing palm oil supply chain, which includes no deforestation, no new development on peat lands, full traceability to the mills including the supplying group of plantations and respect for workers’, local communities’ and human rights...REQUIREMENTS TO SUPPLIERS All our palm oil suppliers are members of RSPO and source their raw material from producers who are also members of RSPO...All suppliers shall be in compliance with additional criteria, which include no deforestation, no new development of peat land and with full traceability to the mill, including supplying group of plantations"[...]"No deforestation means - No clearance of rain forest or HCS forests - Areas of high carbon and high conservation value (HCV) shall be protected - Farms and plantations shall comply with local legislation - Farms and plantations shall comply with RSPO’s criteria for sustainable production"
        
        Open source document
        Open source document
      - Target date
        Current/achieved
        
        1/1
        
        Target date
        
        Current/achieved
        
        1/1
        
        What actions or steps are identified for time-bound implementation?: Ensure suppliers are RSPO Certified
        
        "We want to strengthen our commitment to work towards a more sustainably producing palm oil supply chain, which includes no deforestation, no new development on peat lands, full traceability to the mills including the supplying group of plantations and respect for workers’, local communities’ and human rights...REQUIREMENTS TO SUPPLIERS All our palm oil suppliers are members of RSPO and source their raw material from producers who are also members of RSPO...All suppliers shall be in compliance with additional criteria, which include no deforestation, no new development of peat land and with full traceability to the mill, including supplying group of plantations"[...]"No deforestation means - No clearance of rain forest or HCS forests - Areas of high carbon and high conservation value (HCV) shall be protected - Farms and plantations shall comply with local legislation - Farms and plantations shall comply with RSPO’s criteria for sustainable production"
        
        Open source document
        Open source document
      - Interim target date
        NA (target date current or achieved or 2023)
        
        0.5/0.5
        
        Interim target date
        
        NA (target date current or achieved or 2023)
        
        0.5/0.5
        
        What date is given for the interim milestone?: NA
        
        "We want to strengthen our commitment to work towards a more sustainably producing palm oil supply chain, which includes no deforestation, no new development on peat lands, full traceability to the mills including the supplying group of plantations and respect for workers’, local communities’ and human rights...REQUIREMENTS TO SUPPLIERS All our palm oil suppliers are members of RSPO and source their raw material from producers who are also members of RSPO...All suppliers shall be in compliance with additional criteria, which include no deforestation, no new development of peat land and with full traceability to the mill, including supplying group of plantations"[...]"No deforestation means - No clearance of rain forest or HCS forests - Areas of high carbon and high conservation value (HCV) shall be protected - Farms and plantations shall comply with local legislation - Farms and plantations shall comply with RSPO’s criteria for sustainable production"
        
        Open source document
        Open source document
    - Commitment to a traceable supply chain
      
      6/7.5
      - Commitment details
        Traces to Point of production
        
        4/4
        
        Commitment to a traceable supply chain
        
        Traces to Point of production
        
        4/4
        
        When was this commitment set?: 2021
        
        "We want to strengthen our commitment to work towards a more sustainably producedpalm oil supply chain by including additional specific demands on the suppliers and their sub-suppliers. This includes [...] achievement of full traceability to the mill including supplying group of plantations"[...] "Monitoring and follow up: Procurement of palm oil follows Arla’s general procurement management process. Assessment of suppliers, monitoring of development, follow up and handling of deviations will be handled according to these processes"
        
        Open source document
      - Commitment applies to all regions, suppliers and operation
        Yes
        
        2/2
        
        Commitment applies to all regions, suppliers and operation
        
        Yes
        
        2/2
        
        "We want to strengthen our commitment to work towards a more sustainably producedpalm oil supply chain by including additional specific demands on the suppliers and their sub-suppliers. This includes [...] achievement of full traceability to the mill including supplying group of plantations"[...] "Monitoring and follow up: Procurement of palm oil follows Arla’s general procurement management process. Assessment of suppliers, monitoring of development, follow up and handling of deviations will be handled according to these processes"
        
        Open source document
      - Target date
        Post 2050 or no target date
        
        0/1
        
        Target date
        
        Post 2050 or no target date
        
        0/1
        
        "All suppliers shall be in compliance with additional criteria, which include no deforestation, no new development of peat land and with full traceability to the mill, including supplying group of plantations."
        
        Open source document
      - Interim target date
        No
        
        0/0.5
  - Associated Human Rights Abuses
    
    4/17
    - Labour rights in the supply chain
      Yes
      
      3/3
      
      Labour rights in the supply chain
      
      Yes
      
      3/3
      
      How far back in the supply chain does this commitment apply?: Tier 1
      
      Other workers' rights commitments: Only work legal working hours; Guaranteed safe and healthy workspaces; Free from abusive practices/undue disciplinary procedures
      
      Details of commitment: UNGP; UN Declaration for HR; Discrimination; Forced labour; Child labour; Freedom of association
      
      "REQUIREMENTS TO SUPPLIERS: "Responsible labour conditions (no child and forced labour, no discrimination and harassment, respect for workers’ rights, safe and healthy workplace, freedom of association, legal wages and working hours). [...] Respect and support UN Declaration of Human Rights"
      
      Open source document
    - Inclusion of small-scale farmers
      No
      
      0/2
    - Gender equality in the supply chain
      Commitment to address gender related labour rights including discrimination and harassment
      
      1/2
      
      Gender equality in the supply chain
      
      Commitment to address gender related labour rights including discrimination and harassment
      
      0.5/2
      
      "Equal Opportunities and Forced Labour 8.1 The Supplier shall provide equal opportunities for its employees and may not discriminate on the basis of race, sex, age, religion, marital status or sexual orientation, or use forced labour."
      
      Open source document
    - Commitment to remediation
      No
      
      0/1
    - Commitment to ensure Free, Prior and Informed Consent
      No
      
      0/3
    - Commitment to resolve land conflicts
      No
      
      0/3
    - Zero-tolerance approach to violence and threats
      No
      
      0/3
  - Implementation and Reporting
    
    14/56
    - Reporting volumes against commitments
      80-99%
      
      0/3
      
      Reporting volumes against commitments
      
      80-99%
      
      0/3
      
      Does the company report on the degree of compliance/progress with commitments, disaggregated by relevant factors such as origin or supply chain stage?: No
    - Reporting is independently verified
      Yes, using a third-party verification scheme or certification scheme
      
      2/2
      
      Reporting is independently verified
      
      Yes, using a third-party verification scheme or certification scheme
      
      2/2
      
      Open source document
    - Suppliers aligned with deforestation commitments across supply chain
      Yes, encouraged
      
      0/3
      
      Suppliers aligned with deforestation commitments across supply chain
      
      Yes, encouraged
      
      0/3
      
      "All our palm oil suppliers are members of RSPO and source their raw material from producers who are also members of RSPO. • All suppliers shall be in compliance with additional criteria, which include no deforestation, no new development of peat land and with full traceability to the mill, including supplying group of plantations."
      
      Open source document
    - Deforestation cut off date
      No
      
      0/2
    - Collaborative actions
      Yes
      
      2/2
      
      Collaborative actions
      
      Yes
      
      2/2
      
      What initiatives does the company participate in?: Labour Rights Workshop Initiative Indonesia
      
      What is the nature of that participation?: Providing technical capacity
      
      "In Indonesia, we have continued to financially support workshops in collaboration with our main supplier of palm oil. Our primary objective has been to strengthen sub-supplier understanding of human rights and labor issues, particularly addressing child labor risks, and to improve plantation management practices and responsible business practices. These workshops build on the already ongoing responsible sourcing trainings provided to multiple existing suppliers across Indonesia."
      
      Open source document
    - Jurisdictional approach focused on sustainable land use
      No
      
      0/2
    - Risk assessments for forest risk
      No
      
      0/2
    - Operations assessed to comply with law
      No
      
      0/2
    - Accessible grievance mechanism
      Yes, publicly accessible grievance mechanism
      
      2/4
      
      Accessible grievance mechanism
      
      Yes, publicly accessible grievance mechanism
      
      2/4
      
      Which issues does the grievance mechanism cover?: Social; Environmental
      
      What is the nature of the grievance mechanism used by the company?: Own mechanism
      
      "Grievance mechanisms Arla values and respects honest and open communication, and all stakeholders have the opportunity to raise questions and or concerns through: arla@arlafoods.com. As an employee you may ask questions or raise concerns regarding potential and actual adverse human rights impacts to your immediate leader or HR Business Partner, or you can report through our Whistleblower service available at: http://whistleblower.arla.com. No reprisal or retaliatory action will be taken against any employee for raising concerns under Arla Foods Human Rights Policy. We will establish grievance mechanisms, and are committed to investigate any concerns, and if we discover any severe adverse human rights impacts, we will act appropriately without delay."
      
      Open source document
      Open source document
    - Report volumes of commodity
      Reporting total volume
      
      3/3
      
      Report volumes of commodity
      
      Reporting total volume
      
      3/3
      
      What product types/sectors is this in?: Food
      
      Total volume: 39329.0 Metric tonnes
      
      What is the non-DCF commodity volume sourced from known production areas, and proportion of total supply chain volume this represents?: NA
      
      Reporting certified/compliant volume: 39329.0 Metric tonnes
      
      Reporting non-certified/non-compliant volume: 0 Metric tonnes
      
      In their 2020 RSPO ACOP Report Arla Foods Amba report they consumed 39329.0 Metric tonnes of palm oil, 100% of the palm oil they consumed that year being RSPO certified.
      
      Open source document
    - Upstream: Monitor compliance with human rights
      No
      
      0/5
    - Compliance of company-owned operations
      No
      
      0/5
    - Downstream: Publishing supplier lists
      No
      
      0/4
    - Downstream: Monitor compliance in supply chain
      Yes, for its suppliers
      
      2/4
      
      Downstream: Monitor compliance in supply chain
      
      Yes, for its suppliers
      
      2/4
      
      For what percent of suppliers does the company directly monitor compliance of production or processing operations?: 0%
      
      For what percentage of the commodity sourced by the company is deforestation/conversion monitored at the farm level on production units known to be in the company's supply chain?: NA
      
      For what percentage of suppliers does the company use/rely on external mechanisms to monitor compliance?: 100%
      
      How is compliance monitored?: Certification
      
      What percentage of the company's supply chain volume does that represent?: 100%
      
      How frequently is compliance assessed?: Annually
      
      "Procurement of palm oil follows Arla’s sourcing process. Assessment of suppliers, monitoring of development, follow up and handling of deviations is managed according to these processes. Compliance of the suppliers with the before described principles leads to RSPO certification of the oil purchased and it is monitored on a yearly basis. We share our progress in achieving our ambition publicly on an annual basis in our communication of progress report to RSPO and our responsibility report."
      
      Open source document
    - Downstream: Reporting hectares of deforestation
      No
      
      0/4
    - Downstream: Engagement with non-compliant suppliers
      Blacklist non-compliant suppliers without engagement
      
      1/2
      
      Downstream: Engagement with non-compliant suppliers
      
      Blacklist non-compliant suppliers without engagement
      
      1/2
      
      What criteria does the policy specify for blacklisting or exclusion?: NA
      
      Does the company work with the non-compliant supplier to develop an implementation plan to remedy associated harms or non-compliance?: No
      
      Does the company engage non-compliant indirect suppliers in order to address and remedy non-compliance?: No
      
      Does the company commit to engage with rightsholders, Indigenous peoples and local communities when developing the implementation plan?: No
      
      What type of support does the company offer to its suppliers to help them achieve compliance with commitments?: NA
      
      "We expect our Suppliers to comply with the requirements set out in “Our Responsibility”, including environmental, social and human rights aspects, in addition to meeting our expectations in relation to quality and food safety"[...]"In the event of a material and/or repeated breach by the Supplier of any of its obligations under this Code of Conduct for Suppliers, Arla Foods is entitled in whole or in part to terminate its co-operation with the Supplier, without incurring any liability towards the Supplier."
      
      Open source document
    - Downstream: Disclosure of non-compliant suppliers
      No disclosure
      
      0/2
      
      Downstream: Disclosure of non-compliant suppliers
      
      No disclosure
      
      0/2
      
      Does the company have a list of blacklisted or otherwise excluded suppliers or producers?: No
- Pulp & Paper
  
  13/90
  - Commitment Strength
    
    4/17
    - Commitment to protect priority forests
      
      4/9.5
      - Commitment details
        Credible certification scheme
        
        2/6
        
        Commitment to protect priority forests
        
        Credible certification scheme
        
        2/6
        
        Which certification schemes are used?: FSC; PEFC
        
        When was this commitment set?: NA
        
        What paper/pulp product does their commitment apply to?: Paper products
        
        Type of sustainability commitment: Reduce the volume of virgin wood fibre used in paper and packaging products through usage of recycled content
        
        "Forest fibre plays an important part in our production chain. Although we use recycled fibres wherever possible, some packaging requires virgin forest fibre to comply with food safety regulations. During the year, we achieved our commitment to use only FSC®- certified forest fibre materials in Europe by the end of 2021. Where FSC®-certified forest fibre is not available, we accept forest fibre from national certification schemes if a PEFC due diligence process has proven it comes from a reputable source.[...]100% recyclable packaging by 2025 where our products are sold...At the end of 2021, 90% of our packaging material was recyclable by weight, compared to our 2020 baseline of 85%."
        
        Open source document
      - Commitment applies to all regions, suppliers and operation
        No
        
        0/2
        
        Commitment applies to all regions, suppliers and operation
        
        No
        
        0/2
        
        What subsidiaries are explicitly included?: Europe
        
        If no, what is excluded?: Location
        
        "Forest fibre plays an important part in our production chain. Although we use recycled fibres wherever possible, some packaging requires virgin forest fibre to comply with food safety regulations. During the year, we achieved our commitment to use only FSC®- certified forest fibre materials in Europe by the end of 2021. Where FSC®-certified forest fibre is not available, we accept forest fibre from national certification schemes if a PEFC due diligence process has proven it comes from a reputable source.[...]100% recyclable packaging by 2025 where our products are sold...At the end of 2021, 90% of our packaging material was recyclable by weight, compared to our 2020 baseline of 85%."
        
        Open source document
      - Target date
        Current/achieved
        
        1/1
        
        Target date
        
        Current/achieved
        
        1/1
        
        What actions or steps are identified for time-bound implementation?: FSC Certification
        
        "Forest fibre plays an important part in our production chain. Although we use recycled fibres wherever possible, some packaging requires virgin forest fibre to comply with food safety regulations. During the year, we achieved our commitment to use only FSC®- certified forest fibre materials in Europe by the end of 2021. Where FSC®-certified forest fibre is not available, we accept forest fibre from national certification schemes if a PEFC due diligence process has proven it comes from a reputable source.[...]100% recyclable packaging by 2025 where our products are sold...At the end of 2021, 90% of our packaging material was recyclable by weight, compared to our 2020 baseline of 85%."
        
        Open source document
      - Interim target date
        NA (target date current or achieved or 2023)
        
        0.5/0.5
        
        Interim target date
        
        NA (target date current or achieved or 2023)
        
        0.5/0.5
        
        What date is given for the interim milestone?: 2021
        
        "Forest fibre plays an important part in our production chain. Although we use recycled fibres wherever possible, some packaging requires virgin forest fibre to comply with food safety regulations. During the year, we achieved our commitment to use only FSC®- certified forest fibre materials in Europe by the end of 2021. Where FSC®-certified forest fibre is not available, we accept forest fibre from national certification schemes if a PEFC due diligence process has proven it comes from a reputable source.[...]100% recyclable packaging by 2025 where our products are sold...At the end of 2021, 90% of our packaging material was recyclable by weight, compared to our 2020 baseline of 85%."
        
        Open source document
    - Commitment to a traceable supply chain
      
      0/7.5
      - Commitment details
        No traceability commitment
        
        0/4
      - Commitment applies to all regions, suppliers and operation
        No
        
        0/2
      - Target date
        Post 2050 or no target date
        
        0/1
      - Interim target date
        No
        
        0/0.5
  - Associated Human Rights Abuses
    
    4/17
    - Labour rights in the supply chain
      Yes
      
      3/3
      
      Labour rights in the supply chain
      
      Yes
      
      3/3
      
      Other workers' rights commitments: Only work legal working hours; Guaranteed safe and healthy workspaces; Free from abusive practices/undue disciplinary procedures
      
      How far back in the supply chain does this commitment apply?: Tier 1
      
      Details of commitment: UNGP; UN Declaration for HR; Discrimination; Forced labour; Child labour; Freedom of association
      
      "REQUIREMENTS TO SUPPLIERS: "Responsible labour conditions (no child and forced labour, no discrimination and harassment, respect for workers’ rights, safe and healthy workplace, freedom of association, legal wages and working hours). [...] Respect and support UN Declaration of Human Rights"
      
      Open source document
    - Inclusion of small-scale farmers
      No
      
      0/2
    - Gender equality in the supply chain
      Commitment to address gender related labour rights including discrimination and harassment
      
      1/2
      
      Gender equality in the supply chain
      
      Commitment to address gender related labour rights including discrimination and harassment
      
      0.5/2
      
      "Equal Opportunities and Forced Labour 8.1 The Supplier shall provide equal opportunities for its employees and may not discriminate on the basis of race, sex, age, religion, marital status or sexual orientation, or use forced labour."
      
      Open source document
    - Commitment to remediation
      No
      
      0/1
    - Commitment to ensure Free, Prior and Informed Consent
      No
      
      0/3
    - Commitment to resolve land conflicts
      No
      
      0/3
    - Zero-tolerance approach to violence and threats
      No
      
      0/3
  - Implementation and Reporting
    
    6/56
    - Reporting volumes against commitments
      Compliant commodity volume disclosed for partial volumes
      
      0/3
      
      Reporting volumes against commitments
      
      Compliant commodity volume disclosed for partial volumes
      
      0/3
      
      What is the non-certified/non-compliant volume?: NA
      
      What is the volume with unknown deforestation/conversion risk? Disaggregated by product type or use as relevant.: NA
      
      What is the compliant volume?: NA
      
      What is the certified volume?: NA
      
      Does the company report on the degree of compliance/progress with commitments, disaggregated by relevant factors such as origin or supply chain stage?: No
      
      How much of this downstream deforestation is in protected areas, primary forests, intact forest landscapes, and/or peatlands?: NA
      
      How many hectares of deforestation and/or conversion have occurred since the commitment cut-off date in the operations of the company's direct or indirect suppliers?: NA
      
      What is the proportion of total commodity volume sourced with known deforestation/conversion risk?: NA
      
      Open source document
    - Reporting is independently verified
      Yes, using a third-party verification scheme or certification scheme
      
      2/2
      
      Reporting is independently verified
      
      Yes, using a third-party verification scheme or certification scheme
      
      2/2
      
      What percent of the company's supply volume is verified using company verification systems?: NA
      
      Which processes or groups does the company use for third party verification?: FSC
      
      Which tools, approaches, third-party verification, including certification, schemes are used?: FSC
      
      Is the performance of compliance of some suppliers, sources, or origins not verified, and if so why not?: NA
      
      What methods are used for verification?: FSC
      
      For what percent of the company's supply volume is third-party verification of performance relative to commitments conducted?: NA
      
      "Forest fibre plays an important part in our production chain. Although we use recycled fibres wherever possible, some packaging requires virgin forest fibre to comply with food safety regulations. During the year, we achieved our commitment to use only FSC®- certified forest fibre materials in Europe by the end of 2021. Where FSC®-certified forest fibre is not available, we accept forest fibre from national certification schemes if a PEFC due diligence process has proven it comes from a reputable source."
    - Suppliers aligned with deforestation commitments across supply chain
      No
      
      0/3
    - Deforestation cut off date
      No
      
      0/2
    - Collaborative actions
      No
      
      0/2
    - Jurisdictional approach focused on sustainable land use
      No
      
      0/2
    - Risk assessments for forest risk
      No
      
      0/2
    - Operations assessed to comply with law
      No
      
      0/2
    - Accessible grievance mechanism
      Yes, publicly accessible grievance mechanism
      
      2/4
      
      Accessible grievance mechanism
      
      Yes, publicly accessible grievance mechanism
      
      2/4
      
      What is the nature of the grievance mechanism used by the company?: Own mechanism
      
      Which issues does the grievance mechanism cover?: Social; Environmental
      
      "Grievance mechanisms Arla values and respects honest and open communication, and all stakeholders have the opportunity to raise questions and or concerns through: arla@arlafoods.com. As an employee you may ask questions or raise concerns regarding potential and actual adverse human rights impacts to your immediate leader or HR Business Partner, or you can report through our Whistleblower service available at: http://whistleblower.arla.com. No reprisal or retaliatory action will be taken against any employee for raising concerns under Arla Foods Human Rights Policy. We will establish grievance mechanisms, and are committed to investigate any concerns, and if we discover any severe adverse human rights impacts, we will act appropriately without delay."
      
      Open source document
      Open source document
    - Report volumes of commodity
      No reporting
      
      0/3
    - Upstream: Monitor compliance with human rights
      No
      
      0/5
    - Compliance of company-owned operations
      No
      
      0/5
    - Downstream: Publishing supplier lists
      No
      
      0/4
    - Downstream: Monitor compliance in supply chain
      No
      
      0/4
    - Downstream: Reporting hectares of deforestation
      No
      
      0/4
    - Downstream: Engagement with non-compliant suppliers
      Blacklist non-compliant suppliers without engagement
      
      1/2
      
      Downstream: Engagement with non-compliant suppliers
      
      Blacklist non-compliant suppliers without engagement
      
      1/2
      
      What type of support does the company offer to its suppliers to help them achieve compliance with commitments?: NA
      
      Does the company commit to engage with rightsholders, Indigenous peoples and local communities when developing the implementation plan?: No
      
      Does the company engage non-compliant indirect suppliers in order to address and remedy non-compliance?: No
      
      Does the company work with the non-compliant supplier to develop an implementation plan to remedy associated harms or non-compliance?: No
      
      What criteria does the policy specify for blacklisting or exclusion?: continued breach of supplier code of conduct
      
      "We expect our Suppliers to comply with the requirements set out in “Our Responsibility”, including environmental, social and human rights aspects, in addition to meeting our expectations in relation to quality and food safety"[...]"In the event of a material and/or repeated breach by the Supplier of any of its obligations under this Code of Conduct for Suppliers, Arla Foods is entitled in whole or in part to terminate its co-operation with the Supplier, without incurring any liability towards the Supplier."
      
      Open source document
    - Downstream: Disclosure of non-compliant suppliers
      No disclosure
      
      0/2
- Soy
  
  22/90
  - Commitment Strength
    
    6/17
    - Commitment to protect priority forests
      
      6/9.5
      - Commitment details
        Credible certification scheme
        
        2/6
        
        Commitment to protect priority forests
        
        Credible certification scheme
        
        2/6
        
        When was this commitment set?: 2019
        
        Which certification schemes are used?: RTRS
        
        Does the company commitment also explicitly apply to hidden/indirect soy?: Yes
        
        "Our ambition is to develop our support and commitment for the use of responsibly produced soy by delivering the following two objectives: • all soy fed to cows producing milk for Arla Foods is grown according to RTRS principles and criteria or equivalent since 2015 • all soy based ingredients used by Arla Foods are grown according to RTRS principles and criteria or equivalent since 2015"
        
        Open source document
      - Commitment applies to all regions, suppliers and operation
        Yes
        
        2/2
        
        Commitment applies to all regions, suppliers and operation
        
        Yes
        
        2/2
        
        "Our ambition is to develop our support and commitment for the use of responsibly produced soy by delivering the following two objectives: • all soy fed to cows producing milk for Arla Foods is grown according to RTRS principles and criteria or equivalent since 2015 • all soy based ingredients used by Arla Foods are grown according to RTRS principles and criteria or equivalent since 2015"
        
        Open source document
      - Target date
        Current/achieved
        
        1/1
        
        Target date
        
        Current/achieved
        
        1/1
        
        What actions or steps are identified for time-bound implementation?: RTRS certification
        
        "Our ambition is to develop our support and commitment for the use of responsibly produced soy by delivering the following two objectives: • all soy fed to cows producing milk for Arla Foods is grown according to RTRS principles and criteria or equivalent since 2015 • all soy based ingredients used by Arla Foods are grown according to RTRS principles and criteria or equivalent since 2015"
        
        Open source document
      - Interim target date
        NA (target date current or achieved or 2023)
        
        0.5/0.5
        
        Interim target date
        
        NA (target date current or achieved or 2023)
        
        0.5/0.5
        
        What date is given for the interim milestone?: 2015
        
        "Our ambition is to develop our support and commitment for the use of responsibly produced soy by delivering the following two objectives: • all soy fed to cows producing milk for Arla Foods is grown according to RTRS principles and criteria or equivalent since 2015 • all soy based ingredients used by Arla Foods are grown according to RTRS principles and criteria or equivalent since 2015"
        
        Open source document
    - Commitment to a traceable supply chain
      
      0/7.5
      - Commitment details
        No traceability commitment
        
        0/4
      - Commitment applies to all regions, suppliers and operation
        No
        
        0/2
      - Target date
        Post 2050 or no target date
        
        0/1
      - Interim target date
        No
        
        0/0.5
  - Associated Human Rights Abuses
    
    4/17
    - Labour rights in the supply chain
      Yes
      
      3/3
      
      Labour rights in the supply chain
      
      Yes
      
      3/3
      
      Details of commitment: UNGP; UN Declaration for HR; Discrimination; Forced labour; Child labour; Freedom of association
      
      How far back in the supply chain does this commitment apply?: Tier 1
      
      Other workers' rights commitments: Only work legal working hours; Guaranteed safe and healthy workspaces; Free from abusive practices/undue disciplinary procedures
      
      "REQUIREMENTS TO SUPPLIERS: "Responsible labour conditions (no child and forced labour, no discrimination and harassment, respect for workers’ rights, safe and healthy workplace, freedom of association, legal wages and working hours). [...] Respect and support UN Declaration of Human Rights"
      
      Open source document
    - Inclusion of small-scale farmers
      No
      
      0/2
    - Gender equality in the supply chain
      Commitment to address gender related labour rights including discrimination and harassment
      
      1/2
      
      Gender equality in the supply chain
      
      Commitment to address gender related labour rights including discrimination and harassment
      
      0.5/2
      
      "Equal Opportunities and Forced Labour 8.1 The Supplier shall provide equal opportunities for its employees and may not discriminate on the basis of race, sex, age, religion, marital status or sexual orientation, or use forced labour."
      
      Open source document
    - Commitment to remediation
      No
      
      0/1
    - Commitment to ensure Free, Prior and Informed Consent
      No
      
      0/3
    - Commitment to resolve land conflicts
      No
      
      0/3
    - Zero-tolerance approach to violence and threats
      No
      
      0/3
  - Implementation and Reporting
    
    13/56
    - Reporting volumes against commitments
      100%
      
      0/3
      
      Reporting volumes against commitments
      
      100%
      
      0/3
      
      What is the compliant volume?: 100%
      
      What is the proportion of total commodity volume sourced with known deforestation/conversion risk?: 100%
      
      What is the volume with unknown deforestation/conversion risk? Disaggregated by product type or use as relevant.: 0%
      
      Does the company report on the degree of compliance/progress with commitments, disaggregated by relevant factors such as origin or supply chain stage?: No
      
      What is the non-certified/non-compliant volume?: 0%
      
      How many hectares of deforestation and/or conversion have occurred since the commitment cut-off date in the operations of the company's direct or indirect suppliers?: NA
      
      What is the certified volume?: 100%
      
      How much of this downstream deforestation is in protected areas, primary forests, intact forest landscapes, and/or peatlands?: NA
      
      Open source document
    - Reporting is independently verified
      No
      
      2/2
      
      Reporting is independently verified
      
      No
      
      2/2
      
      What methods are used for verification?: RTRS certification
      
      Is the performance of compliance of some suppliers, sources, or origins not verified, and if so why not?: NA
      
      What percent of the company's supply volume is verified using company verification systems?: 0%
      
      Which processes or groups does the company use for third party verification?: RTRS
      
      Which tools, approaches, third-party verification, including certification, schemes are used?: RTRS
      
      For what percent of the company's supply volume is third-party verification of performance relative to commitments conducted?: 1OO%
      
      Open source document
    - Suppliers aligned with deforestation commitments across supply chain
      No
      
      0/3
    - Deforestation cut off date
      No
      
      0/2
    - Collaborative actions
      No
      
      0/2
    - Jurisdictional approach focused on sustainable land use
      No
      
      0/2
    - Risk assessments for forest risk
      No
      
      0/2
    - Operations assessed to comply with law
      No
      
      0/2
    - Accessible grievance mechanism
      Yes, publicly accessible grievance mechanism
      
      2/4
      
      Accessible grievance mechanism
      
      Yes, publicly accessible grievance mechanism
      
      2/4
      
      Which issues does the grievance mechanism cover?: Social; Environmental
      
      What is the nature of the grievance mechanism used by the company?: Own mechanism
      
      "Grievance mechanisms Arla values and respects honest and open communication, and all stakeholders have the opportunity to raise questions and or concerns through: arla@arlafoods.com. As an employee you may ask questions or raise concerns regarding potential and actual adverse human rights impacts to your immediate leader or HR Business Partner, or you can report through our Whistleblower service available at: http://whistleblower.arla.com. No reprisal or retaliatory action will be taken against any employee for raising concerns under Arla Foods Human Rights Policy. We will establish grievance mechanisms, and are committed to investigate any concerns, and if we discover any severe adverse human rights impacts, we will act appropriately without delay."
      
      Open source document
      Open source document
    - Report volumes of commodity
      Reporting total volume
      
      3/3
      
      Report volumes of commodity
      
      Reporting total volume
      
      3/3
      
      Reporting non-certified/non-compliant volume: 0 tons
      
      What product types/sectors is this in?: Indirect - feed for the dairy cows. Small amounts of soy-based ingredients are used in their food products
      
      Total volume: 347,880 tons
      
      Reporting certified/compliant volume: 347,880 tons
      
      What is the non-DCF commodity volume sourced from known production areas, and proportion of total supply chain volume this represents?: NA
      
      In their 2020 RTRS report Arla state their total volume of soy as 347,880 tons
      
      Open source document
    - Upstream: Monitor compliance with human rights
      No
      
      0/5
    - Compliance of company-owned operations
      No
      
      0/5
    - Downstream: Publishing supplier lists
      No
      
      0/4
    - Downstream: Monitor compliance in supply chain
      Yes, for its suppliers
      
      2/4
      
      Downstream: Monitor compliance in supply chain
      
      Yes, for its suppliers
      
      2/4
      
      How frequently is compliance assessed?: Annually
      
      What percentage of the company's supply chain volume does that represent?: NA
      
      How is compliance monitored?: Certification
      
      For what percentage of suppliers does the company use/rely on external mechanisms to monitor compliance?: NA
      
      For what percentage of the commodity sourced by the company is deforestation/conversion monitored at the farm level on production units known to be in the company's supply chain?: NA
      
      For what percent of suppliers does the company directly monitor compliance of production or processing operations?: NA
      
      "Procurement of soy-based ingredients follows Arla’s sourcing process. Assessment of suppliers, monitoring of development, follow up and handling of deviations is managed according to these processes. Only soy products that are produced according to RTRS/Pro Terra principles can be used in Arla branded products. Compliance with this is monitored on a yearly basis. We share our progress in achieving our ambition publicly on an annual basis in our progress report to RTRS and our responsibility report
      
      Open source document
    - Downstream: Reporting hectares of deforestation
      No
      
      0/4
    - Downstream: Engagement with non-compliant suppliers
      Blacklist non-compliant suppliers without engagement
      
      1/2
      
      Downstream: Engagement with non-compliant suppliers
      
      Blacklist non-compliant suppliers without engagement
      
      1/2
      
      Does the company work with the non-compliant supplier to develop an implementation plan to remedy associated harms or non-compliance?: No
      
      Does the company engage non-compliant indirect suppliers in order to address and remedy non-compliance?: No
      
      Does the company commit to engage with rightsholders, Indigenous peoples and local communities when developing the implementation plan?: No
      
      What type of support does the company offer to its suppliers to help them achieve compliance with commitments?: NA
      
      What criteria does the policy specify for blacklisting or exclusion?: NA
      
      "We expect our Suppliers to comply with the requirements set out in “Our Responsibility”, including environmental, social and human rights aspects, in addition to meeting our expectations in relation to quality and food safety"[...]"In the event of a material and/or repeated breach by the Supplier of any of its obligations under this Code of Conduct for Suppliers, Arla Foods is entitled in whole or in part to terminate its co-operation with the Supplier, without incurring any liability towards the Supplier."
      
      Open source document
    - Downstream: Disclosure of non-compliant suppliers
      No disclosure
      
      0/2
      
      Downstream: Disclosure of non-compliant suppliers
      
      No disclosure
      
      0/2
      
      Does the company have a list of blacklisted or otherwise excluded suppliers or producers?: No
Commitment strength

8/17

Avg. score
Implementation and Reporting

11/56

Avg. score
Associated Human Rights Abuses

4/17

Avg. score

Profile

Arla Foods is a dairy cooperative with activities around the world. The company’s most prominent markets are the United Kingdom, Central Europe and Asia. Its products include milk, cheese, butter and cooking ingredients with brands such as Lurpak, Castello and Apetina. Arla Foods is one of the world’s largest ingredient producers. Soy plays an important role in the cooperative’s animal feed and palm oil is also used in its products. Arla Foods is selected as a powerbroker for palm oil, soy and paper packaging.

Sector

Industry sector

Packaged Foods & Meats, Paper Packaging

Segments

Manufacturer, Retailer

Denmark

Company Type

Company type

Collective Commitments

Consumer Goods Forum member

New York Declaration on Forests signatory

Top Brands

Anchor, Arla, Castello, Lurpak, Cravendale, Skyr

How we assess the Forest 500

To ensure deforestation free supply chains, companies need to adopt and implement timebound and measurable policies for forest risk commodities.

All assessments use policies published on company websites, some links may have changed or been removed since the time of assessment.

Full corporate sector performance data Forest 500 assessment methodology

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Disclaimer

This assessment has been carried out following the methodology developed for the Forest 500 project, available here. Please see our disclaimer applicable to all information contained within this site and our terms and conditions for use of data presented on this site.

All assessments use policies published on company and financial institution websites, and while we endeavor to keep them updated some links may have changed or been removed since the time of assessment.

Please contact us with any concerns or feedback about this or other assessments included in the Forest 500.

arla_foods_-_coop_5.jpg

Arla Foods Amba

Total

Score:

Total score:

24%

Profile

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arla_foods_-_coop_5.jpg

Arla Foods Amba

Total

Score:

Total score: 24%

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Total score:

24%