ETFOptimize | High-performance ETF-based Investment Strategies

Quantitative strategies, Wall Street-caliber research, and insightful market analysis since 1998.


ETFOptimize | HOME
Close Window

Operations, Manufacturing and Supply Chain Sustainability Efforts

By: 3BL Media

SOURCE: Herbalife Nutrition

DESCRIPTION:

For more than 40 years, Herbalife Nutrition has been a leader in providing nutrition products that support people’s health and wellness goals. They are also on a mission to ensure their products are manufactured responsibly and sustainably.

To make a big and bold impact on the earth takes significant proactive initiatives, which is why their commitment to protect and safeguard the planet sits at the heart of their sourcing and manufacturing efforts, guided by their core value to always do what’s right.

They work to ensure that their products are sourced, manufactured, and distributed in the most sustainable way possible:

Harnessing the power of plants

With the global population expected to cross 9 billion by 2050, demand is expected to increase 74 percent for daily protein servings. As the world is more focused on climate change, people are looking for alternatives to animal-based proteins that contribute significantly to greenhouse gas (GHG) emissions. Plant-based proteins are considerably more efficient to grow, using less water and emitting less carbon, and producing more protein per acre than beef, eggs, or milk. These are among the main reasons that Herbalife Nutrition has been harnessing the power of plants for over 40 years.

Eighty-four percent of protein in Herbalife Nutrition products is plant-based, with primary ingredients being soy, pea, rice, and quinoa. Soy is the number-one ingredient in many of our products, including most varieties of Formula 1, our flagship product. Soy is one of the only complete plant-based proteins since it contains all nine essential amino acids that our bodies cannot produce on their own. Soy is also significantly more efficient to grow, using less water and emitting less carbon, and producing more protein per acre than beef, eggs, or milk.

Herbalife Nutrition’s annual soy usage per year is roughly 30K metric tons and is expected to grow at an estimated rate of 6-8 percent annually. They work with soy suppliers committed to sourcing responsibly. They have the goal to source only soy ingredients and palm oil from companies certified by the Roundtable on Responsible Soy (RTRS) and the Roundtable on Sustainable Palm Oil (RSPO), respectively.

Supply chain responsibility

Originally Herbalife Nutrition outsourced the manufacturing and distribution of most of our products. To garner more control and general oversight, they decided to bring many of these functions in-house. They created a program they call “Seed to Feed,” which tracks where their ingredients are planted, where they are raised, and how they are shipped to their manufacturing facilities. Herbalife Nutrition’s commitment to transparent operations extends to their suppliers. They have stringent standards for supplier selection and only work with those who share their ideals for product quality while leaving a minimal environmental impact.

Working with their technical, scientific, engineering, and operational experts, they have creatively found ways to improve their sourcing. They look for opportunities to limit their environmental footprint and use technology in their manufacturing that allows for significantly faster production that uses less electricity than the industry standard. In fact, as part of their 50 by 50 campaign, they have committed to achieving net-zero emissions by 2050.

The role of packaging

While packaging plays a critical role in keeping products fresh and safe, it also poses environmental challenges, especially in countries where the waste-management infrastructure is underdeveloped. Reduction of packaging and waste benefits the environment, and their business in cost savings and efficiencies gained. By minimizing packaging, using recycled material, and eliminating non-recyclable material from their packaging, they will help achieve a waste-free future and help advance the circular economy.

Herbalife Nutrition is proud of their early achievements, including eliminating plastic bags in some countries, reducing excess packaging materials, and increasing post-consumer resin (PCR)  – a material made from recycled plastic. They’re proud to now include 25 percent of PCR plastic in their flagship Formula 1 Healthy Meal Nutritional Shake Mix canisters in the North American region and planning to expand globally in markets where allowable over the next two years.

Smart, streamlined distribution

Their work also includes evaluating and enhancing how they distribute products to 95 countries and territories worldwide, primarily through a global distribution and logistics network. Currently, they have five manufacturing facilities, along with several trusted contract manufacturers. Combined, these manufacturing centers span four continents and empower them to meet worldwide demand. The move in recent years to vertically integrate their operations not only has ensured better product quality and cost control, but also provides them with increased opportunities to reduce the environmental impact of their manufacturing facilities.

Herbalife Nutrition primarily use ocean transport for global shipping, which has the lowest carbon footprint of any commercial transportation mode. For some routes, such as between Russia and China, they use rail given its cost-effectiveness and energy efficiency. They only use airplanes for transporting product transport in rare instances. As they work to formalize carbon reduction strategies in the future, they will be prioritizing the carbon footprint of their logistics operations to gain additional efficiencies where possible.

Read more here. This article was originally published on IAmHerbalifeNutrition.com.

Tweet me: #HerbalifeNutrition’s COO, Mark Schissel discusses the investments in their supply chain to be more green and the role of technology in their sustainability goals. Read more here: https://hrbl.me/3GCeLCA

KEYWORDS: Herbalife Nutrition

Stock Quote API & Stock News API supplied by www.cloudquote.io
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms Of Service.


 

IntelligentValue Home
Close Window

DISCLAIMER

All content herein is issued solely for informational purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy, nor should it be interpreted as a recommendation to buy, hold or sell (short or otherwise) any security.  All opinions, analyses, and information included herein are based on sources believed to be reliable, but no representation or warranty of any kind, expressed or implied, is made including but not limited to any representation or warranty concerning accuracy, completeness, correctness, timeliness or appropriateness. We undertake no obligation to update such opinions, analysis or information. You should independently verify all information contained on this website. Some information is based on analysis of past performance or hypothetical performance results, which have inherent limitations. We make no representation that any particular equity or strategy will or is likely to achieve profits or losses similar to those shown. Shareholders, employees, writers, contractors, and affiliates associated with ETFOptimize.com may have ownership positions in the securities that are mentioned. If you are not sure if ETFs, algorithmic investing, or a particular investment is right for you, you are urged to consult with a Registered Investment Advisor (RIA). Neither this website nor anyone associated with producing its content are Registered Investment Advisors, and no attempt is made herein to substitute for personalized, professional investment advice. Neither ETFOptimize.com, Global Alpha Investments, Inc., nor its employees, service providers, associates, or affiliates are responsible for any investment losses you may incur as a result of using the information provided herein. Remember that past investment returns may not be indicative of future returns.

Copyright © 1998-2017 ETFOptimize.com, a publication of Optimized Investments, Inc. All rights reserved.