David Pettet has held the role of group head of sustainability at frozen food giant Nomad Foods since April 2023, where he leads the company’s sustainability strategy, ‘Appetite for a Better World’, as well as working with the group’s executive committed to embed sustainability into core business strategies.
Recently, Nomad Foods’ 2050 net-zero targets were validated by the Science Based Targets initiative, along with renewed science-based GHG reduction targets across its operations and supply chain. In its most recent sustainability report, published in August, it announced a 37.4% reduction in GHG emissions intensity and a 40.8% reduction in absolute GHG emissions across its core business since 2019.
SustainabilityOnline caught up with Pettet at the recent Economist Impact Sustainability Week Europe Summit in Amsterdam, where he spoke on a panel discussion about ‘businesses seizing the moment’ when it comes to balancing sustainability targets with business realities. We started by asking him how Nomad Foods is doing just that – seizing the moment in terms of turning sustainability into a business driver.
“Fundamentally, when you look at the food industry, we are a significant contributor to some of the big sustainability challenges,” he says. “We contribute a third of global greenhouse gas emissions. We use 70% of the world’s fresh water. We’re the number one contributor to accelerating biodiversity loss.
“With that in mind, there’s a wider recognition that there needs to be a transformation of the food system in order to reduce those risks, but also reduce the vulnerability of our business to those risks.”
‘Significant strength’
As he explains, Nomad Foods is “really well placed” to tackle some of these issues – as the world’s largest frozen food producer, with brands including Birds Eye, Findus, Iglo, Frikom and Aunt Bessie’s, it offers a “significant strength” in being able to reduce food waste, which in turn lowers carbon emissions.
“Reduced food waste also ensures that we can provide accessible and affordable food, and good nutrition to the many,” he says. “Also, when you look at our product portfolio offering, the majority of it is heavily indexed towards fish and vegetables, which by nature is less impactful than some other forms of protein.
“That all underpins our sustainability strategy, Appetite for a Better World, which is very much around driving decarbonisation, sourcing sustainably, and doing our part to make the food system better.”
Pettet identifies two primary levers that have enabled Nomad Foods to accelerate its sustainability ambitions and drive buy-in from employees, consumers and suppliers. The first is supply chain resilience, built around sustainable fish sourcing, with close to 100% of all the fish it sources MSC-certified.
“That ensures continuity of supply into the future,” he says. “Following on from that, we’re now investing in sustainable agriculture – how it can help deliver some of our new carbon targets, and enable us to become more resilient in light of some of the climate change impacts we’re seeing.”
The second lever is consumer engagement, key to driving top-line growth, with Pettet noting that while consumers are keen to select products that are more sustainable, they’re not willing to pay more for the privilege.
“The key attributes that consumers are looking for are price number one, quality, taste, nutrition, and then sustainability,” he says. “So, given that we’re a branded product that charges more than private label, we need to bake sustainability into our brand equity. It’s a combination of resiliency to protect the bottom line, and consumer-driven growth to contribute to the top-line.”
Resilience drives returns
Nomad Foods places strong emphasis on building resilience as a way to advance its sustainability goals while securing long-term returns. “Yes, there’s an upfront investment in things like climate-smart agriculture,” says Pettet. “But especially after the summer we’ve just had, this will help mitigate potential yield declines – and therefore costs – over time.”
For top-line impact, Nomad Foods sees sustainability as a key enhancer of brand equity, with a recent activation in 200 stores across the UK to highlight its near group-wide MSC certification helping to drive an increase in sales
“It comes back to that age-old question – what’s the financial value of sustainability?” says Petttet. “By actively communicating our sustainability credentials in these 200 stores, we delivered a measurable sales uplift. It was something we were able to quantify.”
Longer-term targets
In terms of its 2050 net-zero goals, Pettet sees the company’s efforts progressing across two phases – short-term targets leading up to 2033, and then a longer-term scaling of initiatives as commercial conditions mature.
“In the short-term, a lot of it is around making sure we have the right data and governance in place, particularly around how we engage suppliers in Scope 3 to drive decarbonisation,” he says. “That includes looking at our freezer portfolio, which is Scope 3, and replacing our assets, which will deliver a noticeable reduction in carbon emissions. Also, engaging our top suppliers and getting them to transition to renewable electricity.
“I can also see us using the time up to 2033 to start trialling regenerative agriculture, understanding what works, what doesn’t, and how you measure it, with a view that when we move into the late 2030s and 2040s, we’ve got the right foundations to scale.”
Corporate flywheel
Over the past 18 months or so, Nomad Foods has updated its governance model, integrating sustainability into its ‘corporate flywheel’, which covers innovation, sourcing, manufacturing, marketing, and customer engagement. This means that each function has a clear role to play in applying sustainability within its part of the business, as well as ensuring that sustainability is not tokenistic but closely linked to business value.
“To be honest, we still have some work to do in addressing the trade-offs when it comes to certain commercial realities and sustainability,” says Pettet. “But now we can say, with authority, that sustainability is part of the strategic thinking and execution of the organisation.”
This gives him cause to be optimistic on the role of sustainability in corporate governance, even if the path ahead may appear rocky at times – not least given the current geopolitical and economic maelstrom the world faces.
“Certainly, the view I’ve always had when it comes to sustainability is to aim high, and make sure you have a plan on how to get there,” says Pettet. “Also, keep moving forward – even if it’s not progressing as fast as you would like – because at least you’re on the journey, and driving the agenda forward.
“Currently, I think we’re at a bump in the road, but when we look at some of the sustainability challenges, the long-term trajectory is clear. So, let’s rephrase the investment, and keep on the journey. Companies that do that will be better off in the long term.”
Learn more about Nomad Foods’ sustainability strategy at www.nomadfoods.com.
