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      2023 | Sustainability Report

      2023 was a busy year at Greenspoon, with 96% growth.

      SUSTAINABILITY REPORT JAN - DEC 2023

      Our 2023 Sustainability Report 2023 was a busy year at Greenspoon, with 96% growth. We did a lot that was brilliant - well done team! We also faced some big challenges, and maybe even failed, in a few areas. But the most important aspect of sustainability is the recognition that it’s a journey. We don’t expect to arrive in a place one day and say “We’ve done it”. In fact from the focus on sustainability, we must move further to regenerative, and to being a business that actively works to restore the planet, and to support human life on this planet. So please come with us on this (not too long!) report that outlines what happened in 2023.

      Why It Matters So Much We’re driven by the belief that food can change the world. It matters where your food comes from primarily because it has a direct effect on your health, your quality of life, your longevity, and your likelihood of ending up spending more or less time with doctors in white coats. Food systems today don’t prioritize health, they don’t really think about how to help you as a consumer, make the best decisions for yourself. It’s easier to order yourself fast food, thick with saturated fats and empty calories, laden with sugar and salt to make it highly addictive, than to think about what you plan to cook this week. But we all have to make the change. Food systems also matter because they are changing the shape of our planet. It’s always been central to our philosophy to question the status quo, and to go a little further to do the right thing. But the way our food is grown, the length of supply chains, the amount of food that is flown across the world, and the quantity we all waste, is contributing to the rapid heating up of our world. That’s where our decisions are so epically significant. It’s impossible to understate how much it matters, and how much you, as a reader of this report, as a citizen and as someone who wants a bright future, can do every day with the money you spend on food. Love, This has turned more from a note into a polemic, but food systems, human health, and climate change keep me awake at night. We’re doing everything we can to have a positive impact but we still have so much to do. This report is about keeping ourselves Juliet accountable to our North Star of sustainability, please walk this journey with us!

      2023 | Sustainability Report - Page 3
      2023 | Sustainability Report - Page 4

      In This Report OUR 2023 PEOPLE PLANET OUR GOALS Goals and gains - what we Impacting communities Looking at producers and Defining what’s possible. did right. and including them in our their impact. plans. Keeping the North Star Failures and flops - Food systems & climate brightly lit. learnings. Serving our employees and change. what we can do better. Measuring Success. Logistics & impact. Job creation. Packaging. Supply chain transparency. Waste.

      2023 | Sustainability Report - Page 5

      Revenue Grew 96% 60000000 50000000 40000000 30000000 20000000 10000000 0

      In partnership with Mark Hyman Reduction of we ran an event in waste by 60% Nairobi which over the course We raised USD 11,400 of 2023 Together with our converted all customers we our vehicles raised enough to to LPG. plant 599 trees. Goals We donated 3,806 meals to the We added 78 homeless. & Gains smallholder farmers to our suppliers. WHAT WENT WELL We ran an experiment with WoolCool - it worked, but now As we expanded our We phased out gel we need a local e-bike fleet, we packs for all Nairobi solution partnered with ROAM orders and invested in and M-Kopa, two ice blocks which are amazing Kenyan more sustainable. businesses.

      Our Scope 3 (supply chain) emissions measurement is a We haven’t WoolCool worked but it big challenge. proceeded with our was not financially viable. plan to move to We haven’t found a local solar power alternative so we are back to using polystyrene boxes for upcountry orders. Failures We haven’t managed to go paperless yet, but we are & Flops aiming for it! CRITICAL LEARNINGS Our measurement needs to improve: Our Food Awareness we aren’t doing Campaign was not as enough to report effective as we on progress on a wanted it to be mostly monthly basis. We expanded our because of budgetary fleet, but not with constraints . EVs.

      Our Mission Greenspoon was started to provide greater transparency around the source of our food. Today, we’re a catalyst for change, linking grocery shopping to food systems and food systems to climate change. What matters to you might be convenience, flavour, producers and safety, and you know you can do that when we’ve done the hard work sourcing the highest quality that isn’t just good for you, it’s good for the planet. Being sustainable is one thing, we’d like to be regenerative. It’s a journey, so we’re learning as we go, but to be regenerative will mean we are actively contributing to the regeneration of the planet, rather than simply being sustainable.

      2023 | Sustainability Report - Page 9
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          B Corp Remains a Guiding Force Greenspoon will be reassessed by B Corp in 2025, and we’re aiming for a score of 100+

          SOCIAL IMPACT

          Impacting Communities - Supply Chain We shorten the supply chain by working directly with the farmer. For the Farmer Recognition for their hard work. For our Customer Support on better farming practices. A guaranteed route to market. At Greenspoon HQ Fresher food, faster Fair pay, on time. Healthier, more nutrient-dense food The chance to build their brand and a Checks for Freshness Feeling a connection to the farmer platform to tell their story. Relationships with our suppliers Access to all the essentials, and luxuries Conversations about Quality Further training on food handling Support with tech

          Our Learn & Transform Day We held our 2023 Learn & Transform Day on 10th May at Shamba Café for approximately 50 suppliers. The driving force for this day was simply to share experiences, knowledge and ideas about how to do business in a more sustainable way in Kenya, and to support our suppliers in their businesses. An outline of the day: Keynote: Olivia Muiru on Sustainability in Retail Panel: Digital Marketing Strategy Panel: Packaging & Waste Workshop: Packaging and Branding Keynote: Chris Harrison on Creating an Unbeatable Culture Closing Keynote: Joachim Westerveld on How to Scale Sustainably One of the most exciting outcomes was a Whatsapp group of all our suppliers where ideas around packaging, talent, and so many other topics are frequently shared.

          2023 | Sustainability Report - Page 13

          Meet Brian Matoke - our In-House Agronomist Since joining Greenspoon on May 2nd, 2023, I have been actively involved in supplier and farm visits, with a focus on promoting sustainable and regenerative farming practices. Here is a detailed breakdown of my activities: Farms onboarded Farm Visits Farms in transition Visiting existing suppliers Farms on hold Auditing new farms where we need an update (as they transition) that want to be on their activities (I share listed on this responsibility with the Farms rejected Greenspoon product team) (due to malpractice) What is a farm in transition? Why do we reject some farms? I have advised 12 farms on changing their practices to When we find farms where there is an excessive use of become more regenerative/organic/sustainable. synthetic HHP pesticides, together with an Examples include: Riara Ridge Nurseries Farm to unwillingness to shift towards sustainable farming obtain Kilimohai Organics certification. practices, we have to reject them because they do not Advising Tendo Organic Farm to practice crop meet Greenspoon Standards. diversification through intercropping.

          2023 | Sustainability Report - Page 14

          2023 Partnerships We Are Proud Of ARABUKO FARMERS VEGGIES 4 PEOPLE SAGRI ROAM COOPERATIVE & PLANET Collaboration with citrus fruit We partnered with Veggies 4 People We worked with Sagri, a Japanese We partnered with ROAM and M- farmers in Makueni, Machakos, and & Planet, a 4-year, EUR 2 million Satellite Imaging Company, to Kopa, both Kenyan businesses, to Kitui regions. project with IKEA Foundation World conduct soil sample testing & bring more e-bikes to Greenspoon. Vegetable Centre, to work with satellite imaging on 2 of our supplier We helped map organic citrus organic vegetable farmers in Kiambu farms: Kagira & Farasi Lane. This helps us deliver to our farmers, especially during the and Muranga and provide them with customers in a carbon neutral months of October, November, and a route to market via Greenspoon. Sagri wants to make it more manner, quietly, efficiently and with December. affordable for farmers to get critical zero pollution. We have plans to establish fresh information for farming, for instance: Addressed supply shortages during produce pick-up stations in 2024. soil nutrition, chlorophyll levels, water Our riders also love these bikes peak seasons. retention, pH, and more. because they come with a second battery in case of low range!

          2023 | Sustainability Report - Page 15

          Impacting Communities Our three big initiatives in 2023 were Homeless of Nairobi, Little Lions & the Standard Chartered Nairobi Marathon. We fed 3,806 homeless Little Lions Kibera over the festive period thanks to our amazing customers! Together with Dr Mark Also delivered 575kgs of fresh Hyman from the USA we Standard Chartered produce thanks to our ran an event that raised supportive suppliers! USD 11,400 in total for Marathon Little Lions Kibera. We sponsored the The event was attended by 120 people in Nairobi who learnt Homeless of Nairobi Nairobi Marathon raising funds for the about key health tenets for Volunteers from the team included: longevity. ‘Futuremakers’ initiative Francis Muia | Eliud Njogu | Joyce which tackles Mureithi | Peter Njoroge | Grace inequality and promotes Cherotich | Ambrose Karichu | Daisy economic inclusion for younger Muthee | Martin Kiambuthi | Elijah generations. 14 members of our Karanja | Juliet Kennedy | Jean Karingo Karuana | Tabitha Wothaya. team participated.

          Employee Wellbeing WORK/LIFE PROFESSIONAL MONTHLY PAY A CULTURE OF BALANCE DEVELOPMENT CHOMA PARTY & BONUSES OPENNESS All employees have access to To celebrate successes, and We pay all our employees All our employees are We promote a culture of our Udemy account. In 2023 communicate where we are above livable wage, which is encouraged to explore their radical transparency, we offered 67 courses in as a business, we have a higher than minimum wage. best working environment. sharing statistics and KPIs almost any subject area. We monthly Nyama Choma with all our employees. make this part of our bi- party where all employees All employees are on a In 2023, we installed an annual assessment cycle. are invited. department-specific bonus office gym to encourage We have a weekly scheme that is directly tied working out. anonymous employee We carry out regular training to their team’s performance. satisfaction poll so that we on Health & Safety, and We also provide a staff can gauge if there are any have improved our safety discount on Greenspoon teams that are struggling. equipment and training purchases. through 2023.

          2023 | Sustainability Report - Page 17

          Customer Stories Greenspoon has changed my The epitome of a great online retailer, great life. I no longer have to drive products at fair prices with stellar service into town to the shops. I can get and a true green focus in their daily almost all of my weekly operations: the products and its packaging, groceries delivered right to my transport (predominantly electric fleet). door. Great selection for organic local produce. Can’t go wrong! It's always a pleasure to receive a A reliable and affordable delivery from Greenspoon. Great platform to get a range of AVERAGE NPS SCORE (2023) products, responsive drivers, eco-friendly products in 8.96/10 thorough delivery process, and all Kenya. the staff is super friendly to interact with. Our first experience having recently arrived in Greenspoon offers a wide variety of organic and plant Nairobi. I really enjoyed exploring your site and based products. Deliveries with electric vehicles and the the thoughtful procurement approach and environmental focus is important for sustainability. Many explanation of such. Great products, easy thanks to the Greenspoon team! delivery experience. Thank you.

          ENVIRONMENTAL IMPACT

          Measuring Our Emissions WASTE LOGISTICS OPERATIONS (down 60%) Petrol Electricity LPG Glass (recycled) Water Diesel (for generator Polystyrene (up-cycled) during power Plastic (recycled) outages) Electronic (zero) Kikapus 3000 2000 2500 Glass and Water Use Month on Month (Units) Electricity Use Month on Month (Units) 10000 140000 Polystyrene are sent to Davismart 120000 2000 who upcycle the 1500 8000 polystyrene as 100000 bases for fake plants, 6000 1500 and the glass for 80000 decorations and vases. 1000 60000 4000 1000 40000 2000 500 20000 500 0 0 y g v y g v ul ul u un an u eb un an eb J J Apr Apr Oct Sep Oct J Sep J J F A J F A Dec Dec Mar Mar No Ma No Ma 0 0 Polystyrene Glass Plastic Electronic LPG Petrol Diesel

          Fresh Waste & Circular Economy 1200.00 We have worked super hard on our waste. This chart includes the fresh in kgs throughout 2023. 1000.00 It is a tragedy to have any fresh food waste, and we can see the trend is going downward as we monitor, and put 800.00 measures in place to ensure a reduction of this kind of waste. 600.00 ALL our fresh waste goes to the Ololo black soldier fly farm where it is used to create high protein animal feed 400.00 for the Ololo chickens. Those chickens are then sold on Greenspoon. 200.00 Circular economy is working well in this instance, although we continue to work hard to reduce any fresh 0.00 y g waste. v ul u un an eb J Apr Oct Sep J J F A Dec Mar No Ma

          Packaging Materials 25,000 One of our major ambitions this year 20,000 was to reduce our reliance on gel packs. They are small plastic ice packs 15,000 that help keep produce cool, but they are impossible to recycle after a 1200 number of uses. We have gradually 10,000 reduced their use by replacing them 1000 with permanent ice packs, which are 5,000 reused indefinitely. 800 0 Gel Packs Used Per Month (2023) 600 400 2000 200 When our kikapus are used beyond repair, we 1500 0 send them to Mlango WoolCool Fleece Liners Used Per Month (2023) Farm who use them on their organic farm for 1000 We tried WoolCool, a fantastic wool various projects. This liner that we imported from UK to see year, we sent them 219 if it would work in Kenya. Sadly, it kikapus. 500 failed for us because of the economics + the difficulty with customers returning the liners to us 0 for reuse. Kikapu Baskets Used Per Month (2023)

          Glass & Brown Paper Bags 306 46,882 brown paper bags used per month On average, we return 306 jars or bottles per month for reuse to our suppliers. This includes Brown’s, 245, Bila Shaka, Laki Laki, Eli’s Organics and others. 562,590 brown paper bags used per year

          How We Deliver To You Distance travelled by our drivers in 2023: 917,100 kms! E-BIKES 500,000.00 400,000.00 300,000.00 200,000.00 3 EVs + 100,000.00 12 E-Bikes & 3 3 EVs 9 ICEs 12 ICE petrol bikes. 0.00 KMs done by EVs KMs done by ICE KMs done by e-bike VEHICLES

          Offsetting Emissions Mangroves at Watamu 174 Our general approach is to plant trees to offset emissions. However we know it’s not as simple as Eburru Forest looking at carbon, and offsetting with a carbon sink of 425 some kind. What about biodiversity? We’ve tried to start thinking about the bigger picture this year, which is why we still plant trees, but we also look at consider projects that take into account some measurement of biodiversity which is why this year we’ve done some planting through the For Trees Club.

          Raising Awareness About Climate Change We’ve made it it part of our mission to show, and engage in the narrative around how climate change is impacted by food systems. The way that most food is produced globally contributes to climate change through emissions, however with better food choices, we can be part of the regeneration of the planet. We’ve signed We use our Social Media Channels to the Climate We’ve listed talk about food Champions Food diverse products systems & climate Systems Call To that contribute to change. Action the regeneration of our planet.

          Our Social Media on Climate Change We’re committed to educating as many people as possible about the connection between food systems and climate change and one of the most effective ways to do this is to tell stories about where food comes from, how is has been produced, and what good it does for people & planet.

          GLOBALLY, FOOD PRODUCTION of natural is responsible for 80% habitat loss. it is responsible for IN AFRICA, 32% of the continent’s GDP and the continent must find a way to feed a population expected to double to 2.5 billion by 2050

          Our North Star Goals - 2024 INCREASE UNDERSTANDING OF OUR SUPPLY CHAIN IMPACT (SCOPE 3 EMISSIONS) SELF-ASSESS WITH B CORP AND SCORE 100+ MOVE TO SOLAR POWER INCREASE THE NUMBER OF CUSTOMERS WE SERVE BY 12,000 IN 2024 INCREASE EMPLOYEE SATISFACTION WORK WITH MORE REGENERATIVE SUPPLIERS INCLUDING SMALLHOLDERS EDUCATE & EMPOWER THE CONSUMER

          What Can We All Do? SUPPORT LOCAL GROWERS ASK POLICY MAKERS Buy on Greenspoon and What they are doing KEEP LEARNING know where your food about food systems & About food systems comes from, and its climate change - you & climate change, impact. deserve to know there is a lot to learn! EAT MORE DIVERSITY TALK ABOUT IT Increase the range of With friends and what you eat to show family, colleagues and farmers that they don’t the uber driver... need to monocrop. spread awareness.

          Thank you for being on this journey with us! ALEX (CEO) & JUJU (FOUNDER)