Mr Debadatta Baxi is the Regional Director of Human Resources - India, Korea, South East Asia, and Taiwan at McCain Foods. With over 17 years of experience in the field of Human Resources, he has been associated with McCain since 2013 and currently leads HR, Communications and Sustainability for the company in the region.
In this interview with TheCSRUniverse, Mr. Baxi talks about various activities that McCain Foods is undertaking to achieve its sustainability goals. With the company’s focus on smart and sustainable farming for filling its demand for raw materials, he also shares details of initiatives taken by McCain to promote sustainable livelihoods – Project Shakti and Project Utthan- which have been beneficial for growers, communities, and employees in several regions of India.
He says that McCain food sustainability goals are based on 4 pillars – Smart & Sustainable Farming, Resource-Efficient Operations, Good Food, and Thriving Communities.
Scroll down to delve deeper into the McCain Food’s sustainability goals, initiatives undertaken over the years, future roadmap and much more…
Q: What are McCain Foods' sustainability goals for 2030? What are the objectives of these goals?
A: The sustainability initiatives taken by McCain Foods are aligned with the Sustainable Development Goals (SDGs) as set by the United Nations Development Program (UNDP). Our sustainability pillars form the crux of business and SDGs have helped us devise strategies globally, including in India. We work towards 7 sustainability goals – Zero Hunger, Clean Water and Sanitation, Affordable and Clean Energy, Decent Work and Economic Growth, Responsible Consumption and Production, Climate Action, and Partnerships for the Goals.
As a part of its objectives, McCain has a key focus on smart and sustainable farming, where we aim to implement regenerative agriculture practices on 100% of our potato acreage by 2030, reduce CO2/tonne from potato farming, storage and freight by 25% by 2030, and promote training, knowledge & technology transfer to our farmers.
We aim to work towards 50% absolute reduction in CO2 emissions (Scope 1 & 2), move out of coal to 100% renewable electricity by 2030, and achieve 30% reduction in CO2 emissions intensity (Scope 3) by 2030 (2017 baseline). As a part of its resource-efficient operations, McCain also aims to reduce food waste intensity by 50% across all its operations by 2030.
McCain’s other objectives include using ingredients that customers recognize, expect, and accept. We also provide clear and transparent nutritional information and expand healthier food offerings, keeping in mind the ‘Good Food’ aspect of our offerings. Our initiatives are also aligned towards scaling-up community development projects such as Project Shakti and Project Utthan, which are highly active in many regions of India.
Q: What steps is McCain India taking in reaching those goals? What are the thematic areas that you are focusing on?
A: McCain India has been working to integrate sustainable business practices across all its operations for the past 23 years. To achieve its goals, McCain is highly committed to delivering planet-friendly food, reducing carbon emissions, supporting communities through various projects and initiatives, and facilitating the growth of food responsibly.
Through our 4 sustainability pillars – Smart & Sustainable Farming, Resource-Efficient Operations, Good Food, and Thriving Communities, we are actively working towards community development projects, implementing regenerative agricultural practices, reducing pesticide-use intensity, and training farmers on the technology being used to grow potatoes.
The sustainability initiatives taken to promote resource-efficient operations have resulted in 13% reduction in absolute Co2 emissions (Scope 1&2) as compared to 2017 and 23% of the electricity used at our plants is generated from renewable resources.
Two of the initiatives taken by McCain to promote sustainable livelihoods – Project Shakti and Project Utthan have been beneficial for growers, communities, and employees in several regions of India. Our work with communities also includes donating meals to families of farmers and encouraging our employees to devote one day towards charity with the launch of ‘Volunteering Day' in our offices.
Q: What have been McCain's sustainability efforts over the last few years? What are the key results so far?
A: Over the last few years, McCain has actively focused on reducing the impact on the planet, while delivering food, produced, and prepared in a sustainable and responsible manner. Our sustainability strategy comes with a long list of commitments that we have made towards the environment, communities, and consumers. We have successfully been able to bring changes to preserve plants by decreasing absolute CO2 emissions, increasing the use of renewable electricity, encouraging the use of recycled content, adopting sustainable packaging, improving water-use efficiency, and reducing food-waste intensity.
One of our community-focused initiatives- Project Shakti, which was initiated 5 years, has been successfully able to benefit more than 600 women in 4 villages through 45 Self-Help Groups (SHGs).
Project Utthan, which aims to generate income for small and marginal farmers in the region, has improved the livelihoods of 400 small and marginal farmers in the last year through agriculture and livestock management support.
These key initiatives have helped us build our core values to promote women empowerment, create sustainable livelihoods for farmers and educate communities to spread awareness regarding technological advancements and innovations in agriculture.
We also launched McCain Chips, a food security project wherein we donate food to the needy. Under the project, we donated 1,00,000 meals in 2021.
We are also committed to practicing regenerative agriculture to ensure farm resilience, enhance crop and ecosystem diversity, minimize soil disturbance, reduce agro-chemical impacts, and optimize water use and integrate organic and livestock elements. To observe the key developments on the framework, we also measure adoption of these practices by the farmers and progress over time.
Q: What is the geographical reach of these projects, and do we see the company extending its reach to other parts of the country?
A: We have launched community-developmental projects in the nooks and corners of the country. Project Shakti was launched in 2017 in district Mehsana of Gujarat. Project Utthan implemented in partnership with BAIF, aims to generate income for small and marginal farmers in Gujarat’s Sabarkantha district. Starting from targeting small villages and districts of several regions in India, we aim to expand the reach of these projects.
Under the McCain Chips-In program, we have donated more than 100,000 meals, and our global commitment is to donate 200 million meals to food banks and NGOs by 2025. The project has been launched pan-India.
Q: Could you please share a case study wherein the company made a meaningful and sustainable impact on the life of a beneficiary?
A: McCain works closely with the communities, supports them for their day-to-day practices and helps them build a better future. One of our initiatives, Project Utthan successfully helped the Ganesh Farmers Group, which was facing water-related problems in the Sabarkantha district. The group was being forced to buy water due to short supply. As a solution, Project Utthan provided a borewell along with irrigation pipes and lifting devices, which increased the water storage capacity. This borewell was funded by the project as well as the users, as we believe community participation and ownership to be a crucial factor in the success of the project. This helped them earn a profit by generating extra income and the group does not have to pay to buy water anymore.
Similarly, Project Shakti has also empowered many women by providing skills development and financial freedom. One such woman -Jassiben from Ambaliyasan village in Gujarat used to run family expenses on her husband’s salary, which was merely Rs 8,000, not enough to feed her four daughters.
Under Project Shakti, Jassiben volunteered with Shakti and also opened up a spice business by taking an interest free loan from the project. She is among the 800 women who have benefitted from the project.
Q: India is still a developing nation. The pace for adoption of new technologies is still slow. How feasible is it for corporations to set early targets for achieving sustainability goals? What are the main challenges?
A: Many organizations ask themselves the question: why should we make this our problem? The answer is easy and simple: because it is a shared responsibility as these development goals can pose challenges for the corporations as well, which is why they are widely involved in implementation of SDGs.
Organizations must take energy efficiency seriously as they can preserve fossil fuels for those who cannot afford alternatives. Apart from the societal gains, energy efficiency can also lead to financial gains for a corporation. Pertaining to these reasons, more investments have been made in this sector as per Deloitte’s 2017 Renewable Energy Outlook30.
Working towards SDGs can be challenging for the companies as they need to evolve their communication strategies. Traditional and modern communication strategies have also posed several challenges for the organizations.
Moreover, more companies now engage with their stakeholders via internet and social media, where they share advancements related to sustainable development real-time. However, a few companies are still shy to come out on these platforms. They need to understand that these tools can be effective and may benefit corporate reputation as well as lead to completion of the goals.
Some companies consider SDGs to be a complex agenda to monitor continuously. However, organizations, which do not incorporate them might remain behind and lose several business opportunities critical for them.
At McCain, we understand our responsibilities towards the environment and the planet, and we do not want to cause any kind of degradation to nature which can harm a sustainable future.
Moreover, continuous monitoring of our initiative towards sustainable development has been quite beneficial for us as we can reform our strategies accordingly. Since the global energy demand is widely increasing, we must find out ways to conserve the resources. This can be cost saving as well as be valuable for the organizations. Using innovation and technology in the right way, we can actually contribute towards sustainability from our ends.
Q: McCain focuses on food safety and has considerably reduced sodium from its products, however, the plastic packaging still remains to be an environmental hazard. What is the company doing about this issue? Also, how practical is it for the F&B industry to incorporate sustainable methods in terms of packaging products? What are the main issues and challenges here?
A: We consider it our responsibility to produce and package food in a way that is better for the environment, which is why we have committed to ensure that 100% of our packaging materials are recyclable, reusable, and compostable by 2025. As of now, 98% of our paper packaging is designed to be recyclable. As per the Extended Producer Responsibility (EPR), we also recycle 100% of our B2C products.
Speaking about the viability of implementing sustainable practices, the "plastic ban" is being implemented as a result of an ideology that has been realised after years of discussion on international forums. Due to the environmental catastrophe brought on by industrialization, a process of which the food and beverage industry is a key branch, eco-friendliness has become the newest buzzword.
Another environmental issue that contributes to the current challenges in the food and beverage sector is the issue of waste management. No one can deny that the food industry generates a lot of waste, from acquiring the raw materials to marketing and distributing meals.
Some of the issues and challenges include material performance optimization for Goods Protection.
When used for packaging, sustainable materials must outperform non-sustainable alternatives. This extends beyond meeting customer expectations to the problem of food waste and/or product damage. Packaging's function is to protect the items contained within it, and there can be no compromises here.
Secondly, at the moment, the cost of utilising sustainable packaging is reasonably higher than the cost of using conventional packaging. This is because of the materials utilised and where they are sourced but also because of the less-established supply chains, manufacturing methods, and poorer economies of scale.
Q: Do you see enough work happening on part of corporations towards ensuring reduction of carbon footprints/emissions in their work processes/culture? What suggestions would you give to the other social sector stakeholders, especially corporates, in this regard?
A: We believe that businesses are making significant efforts to ensure that their work practices and corporate cultures reduce carbon footprints and emissions. In response to the ambitious goal set by our Hon’ble Prime Minister Mr. Narendra Modi, of reducing the projected carbon emission by 1 billion tonnes by 2030, the Indian stakeholders have taken a keen interest in sustainable development. Investors are investing in firms whose policies are in compliance with the environmental goals and at the same time there has been an increasing trend of disinvestment in firms not giving sustainability due priority. This has led to an increase in corporate spending on sustainable development.
Several firms like Reliance Industries (RIL), Tata Consultancy Services (TCS), HDFC Bank, Wipro, Infosys, Mahindra & Mahindra, JSW Energy, ITC, Adani, Dalmia Cement, and Indian Railways. have published their net zero emission targets. The targets have been set, how and when they will be met is a question of the future.
Even though the emphasis on net zero emission is fairly a new concept (adopted by most firms after COP 26 meet in Glasgow) and have been hampered by COVID-19 and the invasion of Ukraine by Russia, the companies are committed to meet their targets and meet their ambitious target of “Net-zero Emission”.
The goals have been set and now it is time for them to become reality. An honest to the question whether firms have actually contributed towards sustainable development or not can only be answered in a few years when the plans formulated by these companies will start being enforced.
On their part, corporations can promote a work culture where employees work digitally and avoid printing. Other steps like taking public transit or carpool, reducing waste in the office kitchen, participating in carbon offsets and reducing, reusing, and recycling can be taken.
Q: What is your budget allocation for achieving sustainability goals by 2030 announced under various schemes of McCain India?
A: We have not yet set any budget for this. We strive to accomplish our annual goals in the most sustainable manner possible. The budget is typically distributed in accordance with the designated projects. The company shall determine and spend its CSR budget in accordance with applicable law each fiscal year.
We have a 5-year roadmap for achieving our sustainability goals wherein each year projects are reviewed and budgets are fixed. We also have a global fund created just to fund projects, which would reduce scope 1 emissions. This way other projects are evaluated and budgeted for each year.
All expenses made by the company for CSR programmes carried out in line with the CSR Plan that has been authorised are considered CSR expenditures, both direct and indirect. Additionally, any surplus from CSR programmes is also put toward CSR. As a result, any income from CSR programmes is deducted from CSR expenses, and the resulting net amount is recorded as CSR expenses.
Q: What kind of policy support do corporations still require towards creating a sustainable and environment friendly work culture?
A: You may significantly improve your community by volunteering for issues that are important to you. There are numerous environmental issues and conservation programmes in which your business might become involved. Even McCain established a volunteering day off for all staff to engage in charity work.
We are working to create a workforce that is diverse, equitable, and inclusive; for example, women now make up 31% of our India Leadership Team, up from 25% in 2020. Some of our initiatives include a 90-Minute Series for female employees and the creation of a diversity, equity, and inclusion committee.
McCain tries to encourage the employees to adopt the business’s sustainability goals by engaging and involving them in several activities. Gather suggestions from the team members on how the company can go green and be more environmentally conscious in the workplace by talking to them and collaborating with them. Obtaining feedback from employees will allow them to embody and embrace new missions and ambitions.
Q: What is your opinion on nature conservancy becoming an integrated feature of the CSR activities? How is McCain India incorporating the same?
A: CSR is becoming a prominent emphasis for organisations of all types as a critical component of their mission and employee value proposition. CSR is becoming a consumer demand rather than a well-known business practice. McCain's mission revolves around sustainability as it is highly committed to producing delicious, planet-friendly food. This includes producing nutritious food, reducing our carbon footprint, giving back to the communities where we do business, and ensuring a sustainable future for future generations. This is ingrained in our company's culture and was inspired by our founders' belief that conducting business responsibly is profitable.
All of our sustainability initiatives are in line with protecting the environment. McCain has reduced the intensity of CO2 emissions by 1.6% compared to 2020, 5.7% of our waste goes to landfill, which is a 1% reduction since last year. We aim to have zero waste by 2030 and have also reduced pesticide use by 16 percent.
Q: Who are your partners, and what are your expectations from them in fulfilling your sustainability goals?
A: CSR has been defined by the Company as "Initiatives that support the development of an environmentally sustainable and socially responsible business. This involves addressing social and environmental issues as an integral part of the way McCain conducts its business". These would include programmes, projects and activities (collectively "CSR Programmes") aimed at climate-resilient farming, rural community development and generally aligned to similar national and international initiatives.
One of our CSR partners in India is Cohesion Foundation Trust, which is dedicated to the long-term socio-economic advancement of the weak in underserved communities with a particular focus on women. We also work with Robinhood Army, the Asmaan Foundation, and BAIF Development Research Foundation. These organisations primarily work to improve society and assist individuals in need in any way that is sustainable.
On a global scale, we have a variety of alliances and partnerships, such as Global-GAP, a global organisation that develops voluntary standards for the certification of agricultural products worldwide for secure, sustainable farming. As opposed to 56 percent in 2020, we now have 83 percent of our contracted potato volume certified by Global GAP.
SBTi, which assists businesses in setting emissions reduction goals in line with the Paris Agreement and verifies those goals through organisations like the ELLEN MACARTHUR FOUNDATION and RE100, is a resource-efficient operations science organisation. The German Development Finance Institution and Foundation is responsible for the fourth pillar, which is thriving communities.
Q: How important is it for social sector stakeholders to sensitize each other, and the public in general towards sustainability issues?
A: It is high time that the social sector stakeholders begin sensitizing each other and the public in general towards sustainability issues as the greenhouse gases emitted by the industries are very close to causing irreparable damage to the environment.
According to the WMO lead center for climate update predictions, the UK Met Office, the chances of exceeding the 1.5 degree rise in temperature above pre-industrial levels, which will cause irreparable damage to the environment, is rising with each passing year. The chances of the 1.5-degree temperature have now increased to 50% and the threshold is expected to be breached by 2030 unless some major action is taken to curb global warming.
Based on this data, working towards the SDGs is necessary for all the countries to avoid irreparable damage to the environment. Corporates, as a social sector stakeholder, also play a major role in spreading awareness and engaging in initiatives and projects which promote sustainability. McCain is already working on these lines to create a sustainable future for the upcoming generations.
However, sustainability is not something which can be achieved by the corporations, government or the public alone. It is necessary for all the parties to make combined efforts and inculcate sustainable practices into general norms.
The ambition of the contemporary world is not as simple as it used to be. The stakeholders are not just concerned with their profits anymore as seen in the case of firms inviting a larger number of investors and interest from various stakeholders who set ambitious sustainable goals.
