SunOpta Foods (SunOpta), which sources, processes, and distributes natural and organic food products, accounts for a large majority of the company’s revenues. Opta Minerals produces, distributes, and recycles environmentally friendly industrial materials. SunOpta employs a “field to table” model, which includes contracting and purchasing organic, non-genetically modified crops from farmers, processing the inputs delivered from different growers, converting the crops into various food ingredients, and packaging the products for resale. SunOpta has a long standing environmental commitment and states that, “From day one, a cornerstone of [its] success has been an understanding of the link between a healthy environment and a healthy company.” This understanding is reflected in the company’s commitment to organics, its promotion of Fair Trade and Rainforest Alliance certified food products, its commitment to forest stewardship, and its research and development of new, healthy food products. SunOpta does not own or operate its own farms or retail stores, nor does it market its own consumer brands. Instead, through various SunOpta companies, SunOpta sources its raw materials/products from over 60 countries and maintains relationships with over 5,000 growers. The company’s procurement team works with its growers on techniques like crop selection and rotation to mitigate and manage risks associated with climate change.
The company recently implemented a supplier code of conduct with the majority of its key suppliers; unfortunately there are limited details on the specifics of the code or the scope of its coverage. Portfolio 21 will continue to monitor the execution of its code to ensure it upholds the company’s stated values.
To the best of our knowledge the above information is accurate and was obtained from sources we believe to be reliable. Neither the information presented above nor any opinion expressed shall be construed as an offer to sell or a solicitation to buy the security. The views expressed are those of portfolio management as of 10/31/13 and may not reflect current opinions or subsequent events.