Huge food companies checking out supply chains

Four global food producers have made alterations to their supply chains based on supplier environmental sustainability, a new report revealed.

Damone, Heinz, PepsiCo and Unilever have created a "code of conduct" to determine if they will do business with certain suppliers, depending on if the supply company utilizes sustainable practices. The other eight largest food producers have not taken the same steps to create environmentally friendly supply chains. This has the potential to lead to resource scarcity and pressure from green non-governmental organizations as well as competing companies using sustainable supply chains.

The report showed that Associated British Foods, ConAgra Foods, General Mills, Kellogg, Kraft, Mars, Nestle and Sara Lee can improve their ranking over time by implementing a long-term plan for sustainable growth that involves using different suppliers and raw materials.

Some of these companies are slowly beginning to adopt policies that will make their supply chains more environmentally friendly, but not to the same extent as the top four companies. Kraft, for instance, is committed to providing sustainable coffee beans, but only in its European markets. While Nestle is not in the top four for creating sustainable standards for its supply chains, it has determined standards for sourcing and supplier training.