Victor Jose Vallim da Silva
Hanna Fox
Justus Jäde
Moa Astré
Olivia March
Joakim Bredberg
Jönköping International Business School
Guenola Nonet
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Based on Lantmännen's ambition to work with "responsibility from field to fork," the company aims to achieve:
- Added value from grains;
- New business opportunities;
- An innovative company culture;
- Business in cooperation with farms.
Lantmännen strives towards becoming a bio-based circular economy, that is, to use resources in an efficient and sustainable way with focus on reusing and recycling, while working actively with producing renewable resources. In particular, the company targets food and bioenergy issues.
Being a company that is established in several different countries and markets, the responsibility and sustainability strategy of Lantmännen is derived from international standards. The company’s sustainable business development model includes four aspects: risk management, brand values, resource efficiency and increased revenue from business development. Working actively with sustainable business development is included in the company’s strategic planning as well as on the agenda for all of Lantmännen’s subsidiaries and various operations.
Lantmännen develops products and services based on the value demand by consumers in terms of quality, health and environment, and at the same time contributes to development in a sustainable direction. The farmers are the owners of the company and deliver products to the company, following the same sustainability regulations. They sign contracts forbidding themselves to use certain chemicals or GMOs, and if these regulations are not followed, they will no longer be allowed to supply Lantmännen.
The company only take projects that are aimed towards sustainability. Every year, Lantmännen Research Foundation invests between 250-300 million SEK in different research and innovation projects. Some projects are internally initiated, as employees are encouraged and inspired to act and think intrapreneurial and entrepreneurial. One long-term project, for example, is finding new appliances for “bran,” the by-product from milling wheat. Today, bran is only used for feed, but Lantmännen strives towards increasing its value - particularly since the company extract 150,000 tons of it every year.
The many cooperations between Lantmännen and different innovators, suppliers, and universities, amongst others, is a way of bringing new innovative ideas in to the company.
Lantmännen signed the Global Compact - the UN initiative that includes goals for responsible business - in 2009. In addition, Lantmännen works with Agenda 2030, ways for sustainable agriculture, responsibly produced food and climate friendly production.
Goal 2: No hunger
Lantmännen focuses on the goal 2 only inside their market – Sweden. The company uses sustainable cultivation methods and is looking to increase efficiency by creating higher yields with less environmental impact. They also stimulate farmers on the wheat production, by paying higher prices to those farms that produce in a more sustainable way. They also contribute in the food production of other markets and countries by cooperating with local organisations that focus on developing farming in rural and developing countries. However, contributing in foreign countries is not their focus, as most of their products that contribute to this goal are produced and sold in Sweden.
Goal 7: Affordable and clean energy
Lantmännen targets to use fossil-free sources of energy in their production cycle worldwide. Their goal is to use 100% fossil-free energy in their production cycle in Sweden and Denmark by 2025, in the rest of the Nordic countries by 2030, and in the rest of the EU countries by 2040. The company is already close to reaching that target in Sweden and Denmark.
Lately, an increasing trend towards sustainable consumerism is arising in the Nordic countries. This increasing awareness puts Lantmännen in a strong competitive position due to their implementation of sustainable business development into their long-term growth strategy. It further indicates that Lantmännen’s potential customer base is growing accordingly.
Further benefits connected to a sustainable approach are that costs are decreased in regards to waste-handling activities and a general positive association between environmental and financial performance can be observed. This is also supported by an increased resilience that sustainable firms have which means they adjust to and anticipate the environment more easily.
Lastly, it should be mentioned that innovation and sustainability have an impact on the organisation and its functionality. They contribute to employee empowerment and profound cross-departmental communication. Also, they increase participation and the exchange of ideas in the spirit of teamwork.
The environment benefits from the reduced amount of food waste, but also through the vast green cycle of the organisation. That way, the environment is protected and its resources are used much more efficiently.
Lantmännen also contributes in the food production of other markets and countries by cooperating with local organisations that focus on developing farming in rural and developing countries.
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Mats Larsson, R&D Department
Claes Johansson, Sustainability Department
Lantmännen is an agriculture company situated in Sweden that actively works with five sectors: agriculture, machinery, energy, food, and real estate. The company is fully owned by 25,000 farmers and bases all its projects on innovation.