The Calavo Way: A Letter From CEO Brian Kocher
Originally published in Calavo Grower's 2021 Sustainability Report
I am pleased to present Calavo’s fourth annual sustainability report, covering our performance in 2021 on environmental, social and governance (ESG) topics. Over the last few years, teams across Calavo have worked overtime to launch, improve and align sustainability activities to meet evolving customer, investor, and internal expectations. It is gratifying to see the progress we have made, and to know that more is yet to come.
2021 Highlights
We continue to find opportunities to reduce and optimize our energy use, including the electrification of our forklift fleet, ongoing LED lighting upgrades and participation by several of our facilities in local energy demand response programs. By reducing our energy use, especially during peak usage times when the electricity grid is especially prone to blackouts and brownouts, we are both lowering our carbon footprint and helping ensure that our local communities maintain steady sources of power.
Calavo continues to invest in our Mexico operations and workforce, with our 2021 starting wages at least 49% higher than the minimum wage. We were proud to attain gender parity within senior management in our Mexican facilities with a focus on gender inclusion in training and professional development programs. Additionally, our “Talent Bootcamp” for local university students is helping us hire the best and brightest young leaders.
Finally, 2021 was the first time we completed a comprehensive look at our waste streams across our U.S. operations. Working with dozens of vendors, each of whom use different methods for quantifying and reporting waste impacts, was no small feat. The results, which show that we currently divert 69% of waste from landfill, is informing the next phase of our journey to zero waste production by helping us understand differences between our facilities and the largest areas of opportunity.
Looking Ahead
When I joined the company as Chief Executive Officer in February 2022, one of my priorities was to ensure the alignment of our sustainability strategy with Calavo’s business goals and our investors’ priorities. Our Board of Directors agreed, and we immediately launched several new initiatives.
First, we hired a new corporate officer with formal responsibility for ESG. While ESG matters are routinely discussed at the highest levels of the organization, this move ensures that sustainability is embedded even more deeply into our business planning processes.
Second, we began evaluating opportunities to improve the rigor, scope and frequency of our ESG data management systems, so that we can meet new stakeholder requirements to more closely integrate sustainability and financial reporting. We are carefully watching the evolution of sustainability reporting standards and frameworks, including pending rules on climate disclosures and ESG management and oversight practices. In particular, we will implement new technology solutions to standardize our data collection efforts, speed our response plans and move closer to real-time sustainability data tracking and reporting.
Third, we have initiated a strategic review of our ESG programs. We are developing a fresh vision and strategy that will guide us over the next ten years, informing longer-term investments in our operations, supply chain, product development and human capital planning. We anticipate sharing our new ESG vision/strategy, our areas of ESG focus and definitive goals by the end of 2022.
Sustainability is a Key Part of “The Calavo Way”
As we look to the future “The Calavo Way,” our approach to doing business, helps to focus our efforts where they matter most. Our five values—Quality, Innovation, Respect, Drive and Stewardship—remind us that sustainability must be integrated into every part of our business and part of our DNA. Working together, we can accomplish so much. Thank you for being part of our journey.
BRIAN KOCHER, CEO
