Protecting Our Forests

Our forests are true superheroes for the health of both people and the planet:

1. They regulate the climate: Forests absorb carbon dioxide (CO₂) from
   the atmosphere and store carbon, helping to mitigate climate change.
2. They improve air quality: As trees and plants absorb CO₂, they
   release oxygen. Additionally, they filter pollutants
3. They support wildlife diversity: Forests are home to an immense variety of
   animals, plants, and microorganisms. This biodiversity is crucial for
   ecological balance and the survival of many species, including humans.
4. They store water: Forests retain rainwater and release it
   gradually, helping to prevent floods and droughts.
5. They enhance soil quality: Tree roots stabilize the soil, preventing
   erosion. They also contribute to soil fertility, which is essential for
   agriculture and plant growth.
6. They provide a space for relaxation: Forests offer a natural retreat that
   benefits both physical and mental health. Walks in nature help reduce stress
   and improve overall well-being.
7. They provide resources: Forests supply us with wood, paper,
   medicinal plants, and many other natural resources essential to our daily
   lives.

However, over the past century, more and more forests have been cleared worldwide

One of the main reasons being the conversion of land for agriculture. To avoid further exacerbating the effects on the climate and the loss of biodiversity, Dr. Oetker is taking steps to reduce the risks of deforestation within our supply chains. Our goal: to operate entirely deforestation-free by the end of 2025.

How we achieve this is explained by Xian Tian, Sustainability Manager International Procurement at Dr. Oetker:

We use nearly 20,000 different materials in our products worldwide. “Sourcing without deforestation” – how do we achieve that?

Deforestation is not equally likely for every raw material or growing region. For example, with raw materials like tomatoes or grains from Europe, we can be fairly certain that no forests were cleared for their cultivation. They are grown in fields that have usually been used for agriculture for a long time. However, for raw materials such as soy, palm oil, cocoa and cane sugar, the situation is different. In regions of South America, Africa, and Asia, forests are still being cleared for production. Meat, dairy products, and gelatin are also among the raw materials with particularly high deforestation risks. The areas for livestock farming and feed production can be located in high-risk deforestation zones, such as soy used as animal feed for meat sourced from South America. 80% of global soy production is used for animal feed.

And how do you know which materials carry a high risk?

We do not determine which raw material or material from which growing region carries a high risk of deforestation ourselves. We rely on globally recognized data, such as the country benchmark from the organization Global Forest Watch.

How do you handle the data?

On June 30, 2023, the European Union Deforestation Regulation (EUDR) came into effect. This regulation, aimed at preventing deforestation, imposes due diligence requirements for all products sold in the EU, as well as for the export of soy, palm oil, beef, coffee, cocoa, rubber, and wood, and relevant products derived from them. We are implementing the EUDR consistently by the end of 2025.

Our products made from materials that have a high deforestation risk—such as cocoa, chocolate, palm oil, soy products, and paper-based packaging—are covered by this regulation when sold or produced in the EU.

For all materials with a high eforestation risk but not covered by the EUDR framework, we are assessing step by step whether there is a deforestation risk in the supply chain.

Take Dr. Oetker UK’s pizza boxes, for example. As they are not used in the EU, we check if they are made from 100% recycled paper. If virgin fiber paper is used, we investigate which countries the virgin fiber comes from and validate the deforestation risk of virgin fiber in this country using the country benchmark from Global Forest Watch.

What do you do if there is a high risk of deforestation?

For high-risk product groups, we develop customized solutions with our suppliers, define new purchasing standards, and monitor their compliance. For example, we almost only source cocoa through certification from the Rainforest Alliance. The same applies to products containing palm oil, which we aim to only buy RSPO-certified. We also assess whether we can switch to certified products for soy oil and raw cane sugar from Brazil. Another solution is to check whether we can source certain raw materials only from regions where there is no deforestation risk.

How much progress have you already made toward your goal of becoming deforestation-free?

51% of our materials inherently carry a low deforestation risk. By the end of 2024, only 8% of our purchasing volume will be associated with a high deforestation risk – we are currently working intensively to achieve our goal of "deforestation-free supply chains by the end of 2025." For 41%, measures are already being implemented, such as sourcing certified materials, procuring from low-risk areas, and preparing for the EUDR implementation in 2025. So, we've already accomplished a lot.

Our conclusion to deforestation risks:

There are various ways to minimize the risk of deforestation in the production of our raw materials: On the one hand, we can purchase certified raw materials for which active efforts are made and verified to ensure that no deforestation takes place. On the other hand, we can source goods with a high deforestation risk from other regions or via other suppliers that are covered by the EUDR, for example. Another option may be to change the recipes of our products. Our aim is to be deforestation-free for all our raw materials worldwide by the end of 2025.