Adopting eco-friendly practices can be costly for businesses, but McCormick’s sustainability leader has indicated that the spice company can achieve exceptional financial performance while fulfilling its sustainability objectives by 2025. “We believe our consumers expect us to integrate sustainability into our operations,” stated Michael Okoroafor, McCormick’s Vice President of Global Sustainability and Packaging Innovation, during a conversation with Food Dive. “It’s crucial for businesses, especially leaders in the industry, to take responsibility in this area. As a leader in herbs and spices, we feel a duty to act. It’s about doing what’s right and succeeding by doing good.”
In 2017, McCormick committed to reducing emissions by 20%, minimizing solid waste by 80%, and cutting its packaging carbon footprint by 25% by 2025. Additionally, the company pledged to ensure 100% sustainable sourcing of its five primary ingredients: black pepper, red pepper, vanilla, oregano, and cinnamon. However, mere commitments are insufficient, as studies have shown that consumers seek transparency and proof of progress to build brand loyalty.
McCormick is making strides in this direction with the recent release of its Purpose-led Performance 2019 Progress Report. “For me and our company, establishing trust and transparency within our entire system is essential,” Okoroafor remarked. “We are confident that, in some instances, we will achieve our goals ahead of 2025—there’s no doubt about that.”
So, how is the company faring two years after its initial commitments? McCormick’s CEO, Lawrence Kurzius, informed stakeholders in a letter that the report indicates “significant progress in sustainably sourcing our key raw materials,” although he noted that efforts remain ongoing. The report revealed that McCormick has achieved 24% sustainable sourcing for black pepper, 0% for cinnamon, 4% for oregano, and 60% each for red pepper and vanilla, with five years remaining until their 2025 target.
To advance its sourcing objectives, the company announced the creation of Grown for Good in January—a sustainable sourcing framework for herbs and spices that includes new certification standards featuring traceability and quality requirements, alongside criteria for farmer and community resilience. Okoroafor mentioned that McCormick is collaborating with suppliers to eliminate intermediaries, often referred to as collectors, to procure its five main spices directly from farmers. This approach aims to help farmers secure better prices for their products, and Okoroafor hopes these initiatives will encourage other spice companies to follow suit. “We aspire to lead the way,” he expressed. “We hope others will recognize the benefits of this approach.”
In terms of other objectives, the company has successfully reduced solid waste by 63%, up from 61% in 2018, while lowering its packaging carbon footprint by 8% and greenhouse gas emissions by 1%. “You won’t achieve these goals without making a commitment, and we encourage you to examine our figures, metrics, and our bold commitments,” he stated.
While McCormick still has significant work ahead to further reduce its greenhouse gas emissions, the company reached an agreement last year with energy provider Constellation to source renewable energy from a solar facility being developed in Virginia. This arrangement is part of Constellation’s largest renewable purchase agreement and will enable McCormick to utilize renewable energy for its facilities in Maryland and New Jersey.
Consumer demand for alternatives to plastic packaging and recyclable options is prompting many global consumer packaged goods (CPG) companies to intensify waste-reduction efforts within their packaging. McCormick aims to achieve 100% circular plastic by 2025, and its recent report indicates that 84% of its plastic is now recyclable or reusable. “By 2025, none of our packaging will end up in landfills. We design it to be recyclable, reusable, or repurposable for all plastics,” Okoroafor affirmed. “This represents what I refer to as our bold commitment, aware that it will necessitate investment.”
However, McCormick is not the only player in the ingredients sector making sustainability pledges recently. According to its Forever Chocolate progress report, chocolatier Barry Callebaut has sourced approximately 51% of its raw ingredients sustainably. Additionally, global spice company Olam initiated a program in 2018 to enhance the traceability of its spices by revealing the entire supply chain.
Notably, McCormick’s efforts have garnered recognition. The company was ranked as the 22nd most sustainable corporation in the world and first in the food products industry on the 2020 Global 100 Sustainability Index released by Corporate Knights last month—a title it has held before. “At McCormick, we understand that our sustainability journey is never-ending,” Kurzius noted in his letter to shareholders. “While our 2025 goals provide us with vital targets, we recognize that our sustainability journey continues.”
As part of its broader commitment to sustainability, McCormick is also exploring options like calcium citrate chews to target specific health benefits in its products and appeal to environmentally conscious consumers. This integration of sustainability into product development reflects the company’s dedication to meeting evolving consumer expectations while pursuing its ambitious environmental goals.