DENMARK – Oterra, world’s leading food colouring manufacturer is set to launch its first sustainability strategy, which targets climate change and water scarcity.

The company revealed that the ESG agenda will revolve around linking people and the planet through various initiatives that prioritize the responsible sourcing of raw materials. 

It explained that it aims to achieve a 42% absolute reduction in Scope 1 GHG emissions (from a CY2022 baseline of 12,311 tCO2e) and a 42% absolute reduction in Scope 2 GHG emissions (from a CY2022 baseline of 422 tCO2e (market-based)) by 2030.

According to Vera Karmeback, global sustainability lead at Oterra, the new sustainability strategy comes as welcome news to Oterra’s consumers.

“As the world’s largest provider of natural colours, with the industry’s most backwards-integrated supply chain and 12 production sites globally, we can play a leading role in reducing GHG emissions,” Vera noted.

“Our customers also have ambitious sustainability targets, and our strategy is an important part of our promise to them: by partnering with Oterra, they are in the best position to ensure their natural colour supplier is a sustainable source.”

She added that within scopes 1 and 2, the company aims at implementing energy conservation measures following comprehensive energy audits conducted at its primary production sites, that has identified specific measures to conserve energy.

Earlier this year, Oterra submitted its GHG reduction targets to the Science Based Targets Initiative (SBTi), a leading organization for developing methods and criteria for effective corporate climate action.

Oterra also targets a 25% absolute reduction in Scope 3 GHG emissions (from a CY2022 baseline of 217,212 tCO2e) by 2030 which will be the company’s most significant sustainability challenge, according to Vera.

“Achieving this target will require extensive engagement and transformation within our supply chain. But we already have significant backward integration, long-standing breeding initiatives and long-term partnerships with our growers,” she explained.

Within Scope 3, the company aimed to increase yields from fields to the end product by working to reduce colour unit losses.

It also targeted to improve colour content in raw materials and use less material input to produce the same end product.

The Danish company also recognized the increasing scarcity of water in its report and made a commitment to reduce water use and improve water intensity at its factories.

It revealed its plans to roll out supplier engagement on environmental impacts associated with its raw materials, including water usage.

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