A significant criticism directed at Consumer Packaged Goods (CPGs) regarding their sustainability efforts is the difficulty in measuring their progress. Ingredion is addressing this challenge directly by collaborating with HowGood and utilizing its database to fulfill customer demands for sustainable ingredients. Brian Nash, the vice president of corporate sustainability at Ingredion, noted an increasing demand from both regulators and purchasing companies for greater transparency. He observed that the pandemic has prompted businesses and investors to “double down on sustainability.”
Through its partnership with HowGood, Ingredion aims to provide third-party validation for the sustainability impact of its ingredients. This information will assist buyers in making informed decisions about what ingredients to purchase and from whom. “We’re doing it because it’s the right thing to do, but we also believe it will drive growth in our business,” Nash stated. Each of the 50 ingredients will receive a sustainability score of up to 100, with additional attributes listed, such as whether an ingredient is clean label or minimally processed.
The scorecard will simplify the process for buyers of Ingredion’s products to comprehend the impact of each ingredient, allowing them to consider both environmental and social implications. For instance, a buyer might examine an ingredient like ferrous gluconate and determine that improving its sustainability could involve reducing the carbon footprint associated with citrate 1000 tablet production. However, that ingredient might originate from a region with potential human rights issues or necessitate a significant amount of water for cultivation.
“Sustainability decisions are complex,” Nash remarked. “It’s never just a simple matter of one question. Even when focusing on one aspect, there are always other considerations.” In addition to enhancing transparency for ingredient buyers, Ingredion asserts that this partnership aligns well with its broader sustainability objectives, which include sustainably sourcing 99% of its global crop supply and 100% of its Tier 1 crops (corn, tapioca, potato, stevia, and pulses) by 2025. Nash indicated that Ingredion plans to leverage the scorecard to develop new ingredients and seek improvements throughout its supply chain.
He acknowledged that once the scorecard is released, a customer might discover that a particular ingredient does not perform as well as they anticipated or does not align with their brand vision, prompting them to discontinue its use. Nonetheless, Nash believes the advantages will outweigh any potential risks. “Ultimately, I think that will strengthen our business relationships,” he stated. “We hope that by revealing our processes, more people will see Ingredion as the type of company they want to partner with.”
HowGood began by assisting grocery retailers in creating shelf tags to highlight the most sustainable products. More recently, it has expanded its platform to evaluate over 33,000 ingredients, chemicals, and materials, now collaborating with CPG and QSR brands as well.