“Sustainability is at the heart of ofi. The IIS gives finance and business teams the needed numerical link between actions on the ground, as well as their impact and dependency on the Capitals. This will help in both improving the understanding of the Capitals and in taking necessary steps towards increasing the long-term value for the company.”
Taking the initiative forward
F4S will uncover hidden costs and benefits not previously reported, support the leveraging of sustainable financing to address the most pressing supply chain sustainability issues and help support the business to “be the change for good food and a healthy future”. Our vision is to be a best-in-class business partner, responsible for maximizing long-term intrinsic value for all our stakeholders using non-financial drivers of value.
In 2021, we performed a monetary valuation of material natural capital (NC) impacts and dependencies by assigning an approximate monetary impact value. The outcomes are illustrated in our NC Profit and Loss statement (NC P&L) and NC Balance Sheet (NCBS) under the IIS.
Internalization of externalities
F4S will internalize externalities via ourproduct platforms, supporting strategic financial business decisions and influencing significant stakeholders, bringing finance and sustainability concepts together.
Accountants’ culture and mindset change
With no formal framework for measuring these capitals, we needed a better way to measure, quantify and report our long-term “invisible” value. F4S will create partnerships and collaborations to grow this mindset.
Common numerical language
We use a common numerical language – where applicable – that everyone can understand, evaluate and articulate. IIS allows ofi to explain the impact of our actions on the ground to all internal and external stakeholders.
FAQs
What is the Integrated Impact Statement?
The Capitals drive Long-Term Value and underpin a significant portion of a company’s market value. The Integrated Impact Statement (IIS) is a decision-making tool, which allows ofi to manage Long-Term Value. This tool will help embed sustainability concepts – such as multi-capital accounting – into the heart of our business, through finance.
The IIS tool is made up of 3 elements: Profit and Loss; Balance Sheet; and Risk and Opportunity Statement; and covers three Capitals;
Natural Capital: The land, water, biodiversity and other ecosystem services required for food, feed and fibre production. This includes the accounting for renewable and non-renewable environmental resources which ofi depends on for its long-term sustainable operations and associated externalities.
Social Capital: The relationships we forge and nurture for long-term commercial success. This includes the accounting for external stakeholders in society – community, institutions and ofi’s contributions to those relationships through its community-based programmes.
Human Capital: The talent, skills, dedication and inspiration of our workforce and management, and our responsibilities towards them. This includes the accounting for all internal stakeholders, our workforce and management – which ofi relies upon and contributes to, through training and capacity building – and safe and healthy workplaces where rights are respected.
Like a control tower, the IIS decision-making tool effectively reports and allows ofi to manage long-term value.
The IIS leverages existing frameworks by Accounting for Sustainability, the Capitals Coalition and The Economics of Ecosystems and Biodiversity for Agriculture and Food (TEEBAgriFood).
Source of framework: Capitals Coalition (https://capitalscoalition.org/)
What is the IIS Natural Capital scope and results?
F4S in 2019 developed the IIS for the Cocoa business. A summary of some insights from Cocoa’s IIS on key aspects of Natural Capital is presented in Olam’s Annual Report 2019.
The insights from IIS can positively change and differentiate the way we operate and with whom we operate. We are now better informed about our Natural, Social and Human Capital impact, and can provide actionable management information to enable our Business Units to better understand their key impact areas (by Farmer Group level, by country, by commodity), and devise more appropriate plans. This way ofi endeavours to become a resilient and more reliant partner for all our stakeholders by ensuring the creation of Long-Term Value.
The IIS Natural Capital valuation scope is detailed in the table below.
Indicator | Valuation Scope | Main Data | Valuation | Cost / | ||
Country | Watershed | Biome | ||||
Land Use |
|
| Y | Farmed | Gain in biome specific benefits (Ecosystem | Benefit |
GHG | Y |
|
| Total GHG | Social cost of carbon | Cost |
GHG | Y |
|
| Carbon Sequestered | Benefit of sequestered carbon | Benefit |
Water |
| Y |
| Water | Human and ecosystem damage cost | Cost |
Water |
| Y |
| Fertiliser | Human damage cost | Cost |
Read ofi news
ofi marks dairy-focused milestone moment in line with strategy to build a value-added ingredients and solutions-led organization
- Expands plant facility & strengthens capabilities of Ingredient Excellence Center in Malaysia
- Plant now delivers significantly enhanced production capabilities for functional dairy ingredients
- New category labs with state-of-the-art R&D equipment for customizable food and beverage solutions
ofi, a global leader in naturally good food and beverage ingredients, has increased its ingredient manufacturing footprint by adding significant capacity to its dairy production facility in Johor, Malaysia with the commissioning of a new milk powder dryer, whilst also expanding its integrated dairy Ingredient Excellence Center (“IEC”), servicing customers across the Middle East, Africa and Asia.
ofi shares milestone on supporting farmer livelihoods to mark International Coffee Day
Ahead of International Coffee Day on 1st October, olam food ingredients (“ofi”), a global leader in naturally good food & beverage ingredients, announces that it has achieved more than half of its target to improve the livelihoods of 200,000 coffee farmers by 2025. The results are reported in its second Coffee LENS (Livelihoods, Education and Nature at Scale) sustainability impact report.
The report details the achievements made by ofi’s coffee platform in collaboration with customers and partners across 44 projects with a total funding commitment of over $50 million. Launched in 2020, ofi's Coffee LENS sustainability strategy lays out their comprehensive 2025 goals within a four-pillar framework: economic opportunity, education and skills training, climate action and healthy ecosystems. Through this strategy, ofi aims to create a more resilient supply chain and safeguard the future of coffee.
Despite challenges throughout 2022, including various supply chain disruptions, the ongoing war in Ukraine, and adverse weather effecting crops, ofi is progressing well towards creating a more resilient supply chain by making impact at the intersection of farmer livelihoods and the environment.
Employee Spotlight: Pam Elliott, Quality and Food Safety Manager, North America
Pam Elliot has made it her mission to maintain and/or improve the quality of the products she has been entrusted with, since she first graduated college. When the opportunity arose for her to try her hand at food safety, she was up for the challenge. Learn more about her journey.
Your full name: Pam Elliott
Your city and country (i.e. London, United Kingdom): Bolingbrook, Ill. United States
Your job title: Quality & Food Safety (QFS) Manager
Your functional area (i.e. Finance): Quality
Q: How long have you been at ofi? (years): 4 years on October 7th
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