“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
The colorful ingredients taking over our plates in 2023
The trend for bold colors and flavors in food and beverages is rising this year. With consumers increasingly exposed to an array of global food trends, including a wide range of exotic flavors and colors, many are becoming more experimental. At the same time, confectionery products, treats, and snacks are often a moment of fun and relaxation in consumers’ daily lives, so they can be a great opportunity for experimenting with new and exciting shades.
Employee Spotlight: Sydney Valla, eCommerce Operations Manager, North America
Sydney Valla was an undergrad at Fresno State when she first discovered ofi (olam food ingredients) at a career fair. They were passing out tomato-shaped stress balls and recruiting new grads for a management trainee program. She signed-up for an interview and the rest is her-story.
What motivates you when you wake up and come into work?
My team! There are six of us who are 100% dedicated to the Spices eCommerce business and we have a combined 35+ years’ experience at ofi. Together, we work to be a solution provider for new and existing customers, put in place processes to help the business grow and overcome any challenges that are thrown our way.
Anything you’d like to add to help others succeed?
Being in numerous different positions throughout my career (supply chain, product line, sales) has made me a more well-rounded employee and allowed me to view problems from many different angles to find better solutions. I’m glad that I joined a company that offered career growth and expansion. Being a sponge during the early stages of my career allowed me to soak up lots of different information.
What has been your favorite moment at ofi so far?
When I was a product line manager, there was a large fast-food chain that featured one of our ingredients in a delicious and highly promoted LTO. It was so cool to go through the drive thru, pick up lunch, and know that one of the products that I helped to sell was in an item that was being sold across the country.
Our company purpose is ‘be the change for good food and a healthy future.’ In what way do you live our purpose through your work?
Through the eCommerce offerings, we can connect with new customers and segments that have previously been difficult to reach. This allows us to work with new customers to make educated purchasing decisions about where their product comes from, our sustainability offerings, and more. Outside of work, I sit on the Board of Directors for the Central California Food Bank which feeds over 300,000 community members in the Central Valley.
Editor’s Note: This interview has been edited for length and clarity.
Growing for the Future: Safeguarding coffee and cocoa from the climate crisis
Imagine waking up to a world without your morning cup of coffee or being able to enjoy your favorite chocolate. Unthinkable, right? But climate change threatens the livelihoods of millions of small-scale farmers who grow these everyday ingredients.
That's where HEARTH (Health, Ecosystems, and Agriculture for Resilient, Thriving Societies) comes in. It is a collaborative public-private partnership approach to sustainable development in biodiverse landscapes initiated by the United States Agency for International Development (USAID).
Together, USAID, olam food ingredients (ofi), and partners have invested approximately $50 million across six cocoa and coffee projects worldwide, including four HEARTH partnerships. We aim to equip farmers with the right tools and training to transition to more environmentally friendly techniques without sacrificing their livelihoods. There are three key ingredients at the core of HEARTH’s approach to climate action:
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