Global Impact Award

Excellent news last week that the Co-op won The Hermes Global Impact Award at the Retail Week Awards.

Championing Fairtrade products, contributing to local community, launching the Bright Future programme to help victims of Modern Slavery, recycling and the Future of Food strategy were all called out as examples of what puts Co-op ahead of most other businesses.

One of the judges said: “If it was about a single initiative or a campaign there were good entries, but in terms of multiple initiatives over time and the aggregate impact they have, the Co-op just stands out on its own. “The grocer shines a light on important issues like slavery and water – not always the ones that are popular. There’s a pure intent. Tackling modern slavery by offering a path back into employment is a great approach.”

Another judge commented: “The Co-op consistently delivers. It’s cultural across its business – the grocer doesn’t just talk about it, it lives and breathes it.  The Co-op has a strong, genuine sense of duty and community. It is properly entwined with every part of the organisation and it deserves to be properly recognised for that. The Co-op is staying true to its purpose of ‘championing a better way of doing business’, which makes it the worthy winner of this award.”

Reading these plaudits is most encouraging, and having just spent this morning reviewing the 2018 Co-op Way sustainability report at the Risk and Audit Committee, I know we have plenty more positive news to report on the sustainability front.  I was particularly pleased that the Committee met once again with our assurance providers, DNV, and that we considered their report at the same time as our draft financial accounts for the last year.  This to me symbolises the way that we give equal weight to our ethical and financial performance, recognising that the two can and should reinforce each other in a virtuous circle of creating a stronger Co-op the more we can be seen to be contributing to stronger communities and a more sustainable world.

Co-ops UK Retail Conference

It was good to spend Friday and Saturday at the annual Co-ops UK conference for members who are retailers, a great chance to share notes and build relationships. A good turnout of Co-op Council colleagues (some also wearing other hats) plus Gareth Thomas, Helen Grantham and myself from the Group Board and executive.

As usual one of the highlights was the presentation from James Walton, chief economist at the IGD (Institute of Grocery Distribution), with a masterly overview of trends in the marketplace and consumer attitudes.

Take home thoughts from his presentation included: * the impact of Brexit likely to be negative in short to medium term at least, with 40% of our food imported from the EU. * Consumer confidence is consequently at a record low ebb. * Although there is projected growth in grey sales over the next five years, most of this will be form inflation and a little bit to reflect population growth. * Convenience, discounting and online sectors would continue to grow whilst larger supermarkets woful continue to shrink. * Future shoppers will be much more conscious of both health and ethical issues – and even if they still excuse themselves when they consume less-ethical products they will not excuse big companies for ethical lapses. * Growth in plant-based diets seems likely to continue.

There were also useful sessions on trends in the funerals market (including a presentation from Alison Close of the Co-op) and a discussion of initiatives on food waste, tacking anti-social behaviour and making food provenance more transparent in local supply chains.

Final Fairtrade Fortnight update

Coffee with Mike Gidney – CEO of the Fairtrade Foundation (pictured above) – was an excellent chance to catch up with an old colleague and to mull over possible future initiatives for Fairtrade. We met in Esquires cafe in Durham – which as you can see was appropriately merchandised to support the fortnight.

We were particularly interested to discuss how to make careers in ethical food more accessible to students – recognising that for many the first steps in a career path would be in larger company where they could learn skills, but that retaining a focus on ethics in their early careers could then sometimes be challenging. We generated ideas around co-ordination of internship placements by the Foundation, creating positive peer support groups and tying more ethical inputs into initiatives such as Grocery Girls being promoted by the Food CEO of the Co-op, Jo Whitfield.

We also spent time reflecting on the Grocery Code Adjudicator, whose establishment Mike and I both campaigned for when at Traidcraft, and the irony that she was currently investigating the Co-op’s buying practices when Co-op was probably amongst the most ethical of all retailers. Although we await the outcome of those investigations, we both agreed that the focus all retailers were now having to put on handling supplier relationships better was a major step forward. The improvements in god practice across the major retailers in the last two years have really been very marked. However, the scope of the Code was limited to UK suppliers at the moment, so did not really provide direct help to Fair-trade and other overseas producer groups – perhaps that’s a next stage to campaign for.

And then on Friday I was at the AGM of Shared Interest – an organisation that lends to fair trade producers who cannot access commercial finance, and on whose Board I have served for four years. It had been an encouraging year for Shared Interest, and it was inspiring to hear of the impact that well-judged lending could have in equipping small groups for expansion that could extend fair trade benefits to hundreds more workers. But chatting to other supporters – many also keen members of the Co-op – it was also clear that they remain disappointed by the degree to which our stores can get behind Fairtrade Fortnight. There are practical and logistical barriers to be overcome, but I think they are right that we need to try harder in future years.

More Fairtrade Fortnight activities

Just back from giving a talk at Cullercoats Methodist Church on Saturday. We had an audience of about fifty church members and Co-op members/supporters, and the event was organised by Co-op Council member Mark Ormston. Those attending included Sir Alan Campbell, the local MP and Deputy Chief Whip of the Labour Party, and Dan Crowe – Vice-President of the Co-op’s National Members’ Council.

Mark Ormston, myself and Sir Alan

I gave a very brief overview of the development of the Fair Trade movement and then talked about some of the key product categories sold by Co-op: wine, sugar and chocolate/cocoa. I was able to give some colour to my illustrations be describing from my own experience at Traidcraft how producers of these types of product often choose to use Fairtrade benefits. We discussed in particular education, access to clean and safe water and creating opportunities for women.

I then talked about the challenges in Fairtrade at the moment, with reference to the decisions of Cadbury’s, Nestle and Sainsbury’s to drop the Fairtrade Mark from some of their key product lines. We also discussed the commercial problems that Traidcraft has recently faced.

My message was to take heart from the fact that new commitments to Fairtrade were still being made: Waitrose has just announced that it has taken all its chocolate confectionery Fairtrade (something Co-op has done for many years fo course!). And Fairtrade has still had a huge impact on these big organisations, and that big corporates now had to take sustainability very much more seriously. Nestle, Cadbury’s and Sainsbury’s all still were pursuing ethical sourcing schemes, and often applying them now across their whole supply chains rather than just on Fairtrade lines. Whilst these schemes were less impactful in depth, they brought benefits to many millions more producers.

But I then emphasised that we need to keep Fairtrade thriving so that the pressure to run these schemes continued and that everyone had a part to play. As consumers our individual buying choices mattered and send important signals to companies – we should never underestimate how much our own purchases matter: so keep buying Fairtrade (and see my call for taking up the Co-op Fairtrade Pledge on my blog below!).

We can also all join in campaigns and petitions – such as Fairtrade Foundation’s current campaign for a living wage for all cocoa farmers in Ivory Coast. I could show form my own experience how just a few thousand campaign postcards could be enough to get a meeting with a minister of European Commissioner to press for change.

And finally I encouraged people to carry on buying from the fair trade pioneers such as Traidcraft, Divine, Cafedirect and Liberation Foods (as well as buying Co-op Fairtrade products, since Co-op convenience stores could only stock a limited range of their goods). The pioneers are needed to keep standards high, to enthuse and mobilise supporters at grassroots level and to push forward innovation in Fairtrade.

Interestingly this was the first talk on Fairtrade that I had given with a Co-op rather than an exclusively Traidcraft emphasis. What struck me forcefully was just what a difference Co-op and Traidcraft working in partnership together has made – the first Cafedirect products on supermarket shelves, the first fair-trade wine, pioneering of new categories such as charcoal and rubber gloves, sourcing fair trade coffins from Bangladesh. And Co-op has also partnered with Divine since 2000 when it took all its own brand chocolate Fairtrade boring with Divine’s Kuala Kokoo co-operative. Partnerships like this are a great expression of Co-operation in practice – and they really work!

Also in the last week I gave a talk to students at St Chad’s College on Fairtrade matters and ran my own Traidcraft stall at our local church. And we are still only half way through Fairtrade Fortnight!