Finance for Sustainability

One of the six principals of ofi and Olam’s Strategic Plan is to focus on Long-Term Value.

This depends in part on the active management of six non-financial capitals, which we report against in our annual reports. These capitals are not universally assessed in current reporting frameworks, despite driving a significant portion of a company’s market value, so we challenged ourselves to re-imagine business reporting.

Olam first began reporting against these capitals in its 2017 Annual Report. A task force has been setup since, to evaluate Olam’s approach to multi-capital accounting and establish a numerical link to sustainability using multi-capital accounting methodologies. This led to the development of the Integrated Impact Statement (IIS).

Annual Reports

“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.”

Rishi Kalra | Executive Director and Group Chief Financial Officer, ofi

Testing our methodologies

In 2018, Olam piloted the initial IIS tool with three business units – Dairy (Russia), Cocoa (Côte d’Ivoire) and Palm (Gabon) – covering Natural, Social and Human capital. The tool was also independently validated and shared with experts for their input and further refinement.

Making it business as usual

In 2019, a dedicated Finance for Sustainability (F4S) department was created to further develop the multi-capital accounting methodologies, to act as a centre of excellence and to help embed capitals accounting within the organisation. F4S will leverage the expertise of Finance and Accounting to help address the most pressing supply chain sustainability issues. To enhance business decision-making, the IIS is also being deployed at profit centre level.

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.

Inspiring the Finance Leaders of Tomorrow

In collaboration with The Capitals Coalition, Ria Bakshi, Head of Sustainability Accounting, Reporting & Impact for ofi, shares more about the pathbreaking work the Finance for Sustainability (F4S) department has spearheaded in the Non-Financial Capital Accounting sphere, and how this is woven into the organisation’s business decision-making process in a simple, meaningful and transparent manner. This is all showcased in two courses that are free* to enrol on Coursera:

The objective of these courses is to transition from accounting for profit to accounting for business value delivered for people, the wider society, and the planet. It seeks to ignite businesses to contribute, collaborate and create methodologies which value impact from a lens that is not calibrated to just financial implications.

*Coursera charges a fee to receive the course certificate for completion.

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.

Embedding multi-capital accounting

The IIS takes a systems approach that captures the complexity and reality of today’s diverse and intertwined “eco-agrifood” systems, providing a holistic picture to business decision-making, avoiding the risks and limitations inherent in simplistic metrics such as “productivity per hectare”, which ignores Natural Capital stocks, flows, outcomes and impacts. The IIS approach will increase business resilience, allowing ofi to make changes on the ground, to mitigate the risks associated with carbon taxes, biodiversity loss or procurement concerns. Uncovering these risks and opportunities will enable us to better prepare and respond to the challenges of tomorrow.

We believe the IIS will positively change and differentiate the way we operate and with whom. We are better informed about our Natural, Social and Human capital impact and can provide actionable management information to better understand key impact areas (by farmer group, by country, by product, and devise more appropriate plans to address externalities and enhance positive impacts. ofi endeavours to become a resilient and more reliant partner for all our stakeholders by ensuring the creation of long-term value.

F4S in the News

At ofi, we believe our finance teams are well-positioned to help businesses embed sustainability issues into a company’s risk and performance management. Our work aims to re-imagine the valuation approach and integrate the positions of key non-financial capitals in our business decisions. Find out more on how we are driving conversations across different platforms and sharing more about our work.

A4S APAC Launch

Asia Pasific Chapter Of The CFO Leadership Network

F4S Sharing(Reuters)

How Olam, Natura & Co and Kering are taking a regenerative approach to their supply chains

Finance & Talent (FM)

Sustainability accountants: What do they do?

Insights On COP26(FM)

What COP26 commitments mean for accounting and finance

Natural Capital(BT)

Olam among first in Singapore market to report detailed natural capital accounts

How Olam is putting natural capital accounting into action

In a new research paper by Eco-Business on the financial mechanisms to protect biodiversity, the Olam and ofi teams explain how we’re accounting for our impacts on the healthy future of our planetthrough our IIS. 

Better decision making by knowing the true value of food

The Olam team was pleased to contribute to the World Business Council for Sustainable Development’s (WBCSD) latest publication on the True Value of Food, aimed at guiding business leaders in accounting for the real value of food in their decisions and action.

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).

Natural capital diagram

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 Inputs	Valuation Approach	Cost / Benefit
Indicator	Country Specific	Watershed Specific	Biome Specific	Main Data Inputs	Valuation Approach	Cost / Benefit
Land Use			Y	Farmed Area	Gain in biome specific benefits (Ecosystem services)	Benefit
GHG Emissions	Y			Total GHG emissions	Social cost of carbon	Cost
GHG Sequestration	Y			Carbon Sequestered	Benefit of sequestered carbon	Benefit
Water Consumption		Y		Water consumption	Human and ecosystem damage cost	Cost
Water Pollution		Y		Fertiliser chemicals and components	Human damage cost	Cost

Capital accounting transparency (Caveat)

The ofi IIS is not related to financial results or financial reporting. All underlying methodologies are based on well-established databases and frameworks, but as they depend on formula and third-party expert studies, they can only ever be an approximation. The results are for internal purposes only. In the coming years, results could be readjusted according to further methodological refinements. Taken together however, the IIS is a valuable sustainability tool that can help uncover issues and provoke questions necessary to be the change for good food and a healthy future.

Read ofi news

Press Release Apr 23, 2025

Nestlé and ofi launch global agroforestry partnership in largest collaboration yet

Approximately 25,000 farmers across Brazil, Côte d'Ivoire and Nigeria will be trained and supported to convert their farms to agroforestry and implement crop residue management
The aim is to plant over 2.8 million trees and cultivate more than 72,000 hectares of agroforestry as part of a transition to regenerative agriculture.
It’s estimated to cut more than 1.5 million tons of CO₂ over the next 30 years from these activities

Nestlé, the world’s largest food and beverage company and ofi (olam food ingredients), a global leader in naturally good food and beverage ingredients and solutions, are launching their largest-ever joint cocoa agroforestry partnership to reduce carbon emissions and combat deforestation.

As the cocoa industry faces the dual challenges of rising demand and increased environmental pressures, Nestlé and ofi are stepping up their efforts to create a more sustainable future for cocoa production.

Spanning Nigeria, Côte d'Ivoire, and Brazil, approximately 25,000 farmers will be supported in transitioning to climate-smart farming, over a 5-year period in each country by implementing agroforestry and crop residue management^[1]. These activities will be monitored until 2055, with ofi’s carbon footprinting experts estimating they can cut carbon emissions by 1.5 million tons of CO₂ over the next 30 years.

The project aims to cultivate more than 72,000 hectares of agroforestry, as part of a transition to regenerative agriculture. This includes planting an estimated 2.8 million trees, which will be 3^rd party verified, from the nursery to the farm. The baselines for these activities have been established using ofi’s AI-powered Carbon Stock Monitoring tool and will be used continuously to track the geolocation of the trees and that they are growing to comply with the objectives set out by Nestlé and ofi.

The global partnership builds on 15 years of Nestlé and ofi collaborating on sustainable cocoa and is their largest joint agroforestry initiative to date. It is designed to support Nestlé’s Cocoa Plan and 2050 Net Zero targets while also contributing towards ofi’s Cocoa Compass sustainability ambition, which introduced new targets for regenerative agriculture. These feed into ofi’s overarching sustainability strategy, Choices for Change, with a vision of being the preferred partner for positive change.

Events Apr 11, 2025

Meet ofi at PLMA and discover our private label capabilities

We look forward to meeting you in person at PLMA. Come and visit us at stand 1.J15, hall 1, where our private label experts will be happy to help you discover our market ready solutions in soluble coffee, nuts and spices. Book your appointment now via your ofi contact or email.

Press Release Mar 14, 2025

Innovative ofi app targeting infant malnutrition wins at UK’s largest sustainable business awards

A smartphone-based application being deployed by global food ingredients supplier ofi to tackle infant malnutrition has won the ‘Social Sustainability Project of the Year’ category at this year’s Edie awards, which celebrate sustainability leadership.

The Infant Malnutrition System Alert (IMSA) app was developed by ofi sustainability analyst Dr Stéphanie Konan PhD to address high-rates of infant malnutrition in Côte d’Ivoire, where one in five children experience stunted growth and development. It is the first digital health screening service in the country, powered by a geographic information system. By sending alerts to nearby or configured healthcare facilities of registered cases in real-time, IMSA digitized the malnutrition monitoring, enabling quicker treatment, facilitating follow-up, and providing the National Nutrition Program with insightful high level reports.

Since 2019, during the Journée d’Intensification des Activités de Nutrition (JIAN) in Côte d’Ivoire, ofi has been supporting the digitalization of malnutrition screening by using IMSA. This annual campaign is part of its existing nutrition and health programs in Côte d’Ivoire, where it sources cashew, cocoa, and coffee from over 185,000 farming families and via a vast network of local traders.

In 2024, working in partnership with Côte d’Ivoire’s National Nutrition Program, ofi teams and volunteers screened over 22,000 children in cashew communities in the Béoumi district. 370 moderate and acute cases of malnutrition were identified and referred to healthcare facilities. The app also allows ofi to track every case referred for treatment, allowing for 6-month follow-ups.

ofi’s field workers, together with its partners, and local community health workers, also delivered crucial interventions including deworming and Vitamin A tablets, and information on good nutrition – as studies show that infant malnutrition can be largely attributed to a lack of education and low literacy rates.

As well as the Edie award, IMSA and its contribution to national efforts to combat malnutrition was awarded the Prize for Research and Innovation by Côte d'Ivoire’s Minister of Higher Education and Scientific Research in 2023.

The developer of the app, ofi’s sustainability analyst Dr Stéphanie Konan PhD, said: “IMSA was born from a simple idea: that replacing the existing paper-based screening with a digital solution could enable earlier detection and treatment. From that simple idea, collaboration and partnership has built a successful program. ofi’s local teams, embedded in farming communities, have trained community health service agents and established partnerships with local health authorities to reach tens of thousands of farming families."

“What’s really exciting is the great potential IMSA offers for scaling up malnutrition screening and interventions across other regions and countries facing similar public health issues. These kinds of innovative ideas delivered at scale are central to delivering ofi’s long-term ambition to help farming communities thrive.”

Discover much more about what ofi has to offer at ofi.com