Finance for Sustainability

One of the six principals of ofi and Olam’s Strategic Plan is to focus on Long-Term Value.

This depends in part on the active management of six non-financial capitals, which we report against in our annual reports. These capitals are not universally assessed in current reporting frameworks, despite driving a significant portion of a company’s market value, so we challenged ourselves to re-imagine business reporting.

 

Olam first began reporting against these capitals in its 2017 Annual Report. A task force has been setup since, to evaluate Olam’s approach to multi-capital accounting and establish a numerical link to sustainability using multi-capital accounting methodologies. This led to the development of the Integrated Impact Statement (IIS).

“Sustainability is at the heart of ofi. The IIS gives finance and business teams the needed numerical link between actions on the ground, as well as their impact and dependency on the Capitals. This will help in both improving the understanding of the Capitals and in taking necessary steps towards increasing the long-term value for the company.”

Rishi Kalra | Executive Director and Group Chief Financial Officer, ofi

Testing our methodologies

In 2018, Olam piloted the initial IIS tool with three business units – Dairy (Russia), Cocoa (Côte d’Ivoire) and Palm (Gabon) – covering Natural, Social and Human capital. The tool was also independently validated and shared with experts for their input and further refinement.

Making it business as usual

In 2019, a dedicated Finance for Sustainability (F4S) department was created to further develop the multi-capital accounting methodologies, to act as a centre of excellence and to help embed capitals accounting within the organisation. F4S will leverage the expertise of Finance and Accounting to help address the most pressing supply chain sustainability issues. To enhance business decision-making, the IIS is also being deployed at profit centre level.

Taking the initiative forward

F4S will uncover hidden costs and benefits not previously reported, support the leveraging of sustainable financing to address the most pressing supply chain sustainability issues and help support the business to “be the change for good food and a healthy future”. Our vision is to be a best-in-class business partner, responsible for maximizing long-term intrinsic value for all our stakeholders using non-financial drivers of value.

 

In 2021, we performed a monetary valuation of material natural capital (NC) impacts and dependencies by assigning an approximate monetary impact value. The outcomes are illustrated in our NC Profit and Loss statement (NC P&L) and NC Balance Sheet (NCBS) under the IIS.

Inspiring the Finance Leaders of Tomorrow

In collaboration with The Capitals Coalition, Ria Bakshi, Head of Sustainability Accounting, Reporting & Impact for ofi, shares more about the pathbreaking work the Finance for Sustainability (F4S) department has spearheaded in the Non-Financial Capital Accounting sphere, and how this is woven into the organisation’s business decision-making process in a simple, meaningful and transparent manner. This is all showcased in two courses that are free* to enrol on Coursera:

 

 

The objective of these courses is to transition from accounting for profit to accounting for business value delivered for people, the wider society, and the planet. It seeks to ignite businesses to contribute, collaborate and create methodologies which value impact from a lens that is not calibrated to just financial implications. 

 

*Coursera charges a fee to receive the course certificate for completion.

Internalization of externalities

F4S will internalize externalities via ourproduct platforms, supporting strategic financial business decisions and influencing significant stakeholders, bringing finance and sustainability concepts together.

Accountants’ culture and mindset change

With no formal framework for measuring these capitals, we needed a better way to measure, quantify and report our long-term “invisible” value. F4S will create partnerships and collaborations to grow this mindset. 

Common numerical language

We use a common numerical language – where applicable – that everyone can understand, evaluate and articulate. IIS allows ofi to explain the impact of our actions on the ground to all internal and external stakeholders.

Embedding multi-capital accounting

The IIS takes a systems approach that captures the complexity and reality of today’s diverse and intertwined “eco-agrifood” systems, providing a holistic picture to business decision-making, avoiding the risks and limitations inherent in simplistic metrics such as “productivity per hectare”, which ignores Natural Capital stocks, flows, outcomes and impacts. The IIS approach will increase business resilience, allowing ofi to make changes on the ground, to mitigate the risks associated with carbon taxes, biodiversity loss or procurement concerns. Uncovering these risks and opportunities will enable us to better prepare and respond to the challenges of tomorrow. 

 

We believe the IIS will positively change and differentiate the way we operate and with whom. We are better informed about our Natural, Social and Human capital impact and can provide actionable management information to better understand key impact areas (by farmer group, by country, by product, and devise more appropriate plans to address externalities and enhance positive impacts. ofi endeavours to become a resilient and more reliant partner for all our stakeholders by ensuring the creation of long-term value.

F4S in the News

At ofi, we believe our finance teams are well-positioned to help businesses embed sustainability issues into a company’s risk and performance management. Our work aims to re-imagine the valuation approach and integrate the positions of key non-financial capitals in our business decisions. Find out more on how we are driving conversations across different platforms and sharing more about our work.

A4S APAC Launch
Asia Pasific Chapter Of The CFO Leadership Network
F4S Sharing(Reuters)
How Olam, Natura & Co and Kering are taking a regenerative approach to their supply chains
Finance & Talent (FM)
Sustainability accountants: What do they do?
Insights On COP26(FM)
What COP26 commitments mean for accounting and finance
Natural Capital(BT)
Olam among first in Singapore market to report detailed natural capital accounts

How Olam is putting natural capital accounting into action 

In a new research paper by Eco-Business on the financial mechanisms to protect biodiversity, the Olam and ofi teams explain how we’re accounting for our impacts on the healthy future of our planetthrough our IIS. 

Better decision making by knowing the true value of food

The Olam team was pleased to contribute to the World Business Council for Sustainable Development’s (WBCSD) latest publication on the True Value of Food, aimed at guiding business leaders in accounting for the real value of food in their decisions and action.

FAQs

What is the Integrated Impact Statement?

The Capitals drive Long-Term Value and underpin a significant portion of a company’s market value. The Integrated Impact Statement (IIS) is a decision-making tool, which allows ofi to manage Long-Term Value. This tool will help embed sustainability concepts – such as multi-capital accounting – into the heart of our business, through finance.

 

The IIS tool is made up of 3 elements: Profit and Loss; Balance Sheet; and Risk and Opportunity Statement; and covers three Capitals;

 

Natural Capital: The land, water, biodiversity and other ecosystem services required for food, feed and fibre production. This includes the accounting for renewable and non-renewable environmental resources which ofi depends on for its long-term sustainable operations and associated externalities.

 

Social Capital: The relationships we forge and nurture for long-term commercial success. This includes the accounting for external stakeholders in society – community, institutions and ofi’s contributions to those relationships through its community-based programmes.

 

Human Capital: The talent, skills, dedication and inspiration of our workforce and management, and our responsibilities towards them. This includes the accounting for all internal stakeholders, our workforce and management – which ofi relies upon and contributes to, through training and capacity building – and safe and healthy workplaces where rights are respected.

 

Like a control tower, the IIS decision-making tool effectively reports and allows ofi to manage long-term value.

 

The IIS leverages existing frameworks by  Accounting for Sustainabilitythe Capitals Coalition and The Economics of Ecosystems and Biodiversity for Agriculture and Food (TEEBAgriFood).

 

Natural capital diagram

 

Source of framework: Capitals Coalition (https://capitalscoalition.org/)

 

What is the IIS Natural Capital scope and results?

F4S in 2019 developed the IIS for the Cocoa business. A summary of some insights from Cocoa’s IIS on key aspects of Natural Capital is presented in Olam’s Annual Report 2019.

 

The insights from IIS can positively change and differentiate the way we operate and with whom we operate. We are now better informed about our Natural, Social and Human Capital impact, and can provide actionable management information to enable our Business Units to better understand their key impact areas (by Farmer Group level, by country, by commodity), and devise more appropriate plans. This way ofi endeavours to become a resilient and more reliant partner for all our stakeholders by ensuring the creation of Long-Term Value.

 

The IIS Natural Capital valuation scope is detailed in the table below.

 

 Indicator 

Valuation Scope

Main Data 
 Inputs

Valuation 
 Approach

 Cost /
 Benefit

Country
 Specific

Watershed
 Specific

Biome
 Specific

 Land Use

 

 

Y

 Farmed
 Area 

 Gain in biome specific   benefits (Ecosystem
 services) 

 Benefit

 GHG
 Emissions

Y

 

 

 Total GHG
 emissions

 Social cost of carbon

 Cost

 GHG
 Sequestration

Y

 

 

 Carbon  Sequestered

 Benefit of sequestered carbon

 Benefit

 Water
 Consumption

 

Y

 

 Water 
 consumption

 Human and ecosystem damage cost

 Cost

 Water
 Pollution

 

Y

 

 Fertiliser 
 chemicals and components

 Human damage cost

 Cost

Capital accounting transparency (Caveat)

The ofi IIS is not related to financial results or financial reporting. All underlying methodologies are based on well-established databases and frameworks, but as they depend on formula and third-party expert studies, they can only ever be an approximation. The results are for internal purposes only. In the coming years, results could be readjusted according to further methodological refinements. Taken together however, the IIS is a valuable sustainability tool that can help uncover issues and provoke questions necessary to be the change for good food and a healthy future.

Read ofi news

Press Release Mar 14, 2025
Innovative ofi app targeting infant malnutrition wins at UK’s largest sustainable business awards
  • A smartphone-based application being deployed by global food ingredients supplier ofi to tackle infant malnutrition has won the ‘Social Sustainability Project of the Year’ category at this year’s Edie awards, which celebrate sustainability leadership.

 

The Infant Malnutrition System Alert (IMSA) app was developed by ofi sustainability analyst Dr Stéphanie Konan PhD to address high-rates of infant malnutrition in Côte d’Ivoire, where one in five children experience stunted growth and development. It is the first digital health screening service in the country, powered by a geographic information system. By sending alerts to nearby or configured healthcare facilities of registered cases in real-time, IMSA digitized the malnutrition monitoring, enabling quicker treatment, facilitating follow-up, and providing the National Nutrition Program with insightful high level reports.

 

Since 2019, during the Journée d’Intensification des Activités de Nutrition (JIAN) in Côte d’Ivoire, ofi has been supporting the digitalization of malnutrition screening by using IMSA. This annual campaign is part of its existing nutrition and health programs in Côte d’Ivoire, where it sources cashew, cocoa, and coffee from over 185,000 farming families and via a vast network of local traders.

 

In 2024, working in partnership with Côte d’Ivoire’s National Nutrition Program, ofi teams and volunteers screened over 22,000 children in cashew communities in the Béoumi district. 370 moderate and acute cases of malnutrition were identified and referred to healthcare facilities. The app also allows ofi to track every case referred for treatment, allowing for 6-month follow-ups.

 

ofi’s field workers, together with its partners, and local community health workers, also delivered crucial interventions including deworming and Vitamin A tablets, and information on good nutrition – as studies show that infant malnutrition can be largely attributed to a lack of education and low literacy rates.

 

As well as the Edie award, IMSA and its contribution to national efforts to combat malnutrition was awarded the Prize for Research and Innovation by Côte d'Ivoire’s Minister of Higher Education and Scientific Research in 2023.

 

The developer of the app, ofi’s sustainability analyst Dr Stéphanie Konan PhD, said: “IMSA was born from a simple idea: that replacing the existing paper-based screening with a digital solution could enable earlier detection and treatment. From that simple idea, collaboration and partnership has built a successful program. ofi’s local teams, embedded in farming communities, have trained community health service agents and established partnerships with local health authorities to reach tens of thousands of farming families."

 

“What’s really exciting is the great potential IMSA offers for scaling up malnutrition screening and interventions across other regions and countries facing similar public health issues. These kinds of innovative ideas delivered at scale are central to delivering ofi’s long-term ambition to help farming communities thrive.

 

Discover much more about what ofi has to offer at ofi.com

Articles Mar 11, 2025
Women's Inclusion: The Key to Accelerating Climate Action

By Janhavi Naidu, Human Rights & Inclusion Manager, ofi

 

Climate action relies not just on technology or policy - it centers on people and the deep connections they have with the land that sustains them. Within our agricultural communities, there is an overlooked force that can be unleashed to fight climate change: women.

 

The climate challenge for women

 

Women are the backbone of global agrifood systems - in some countries, they make up nearly half of the agricultural labor force. In Sub-Saharan Africa and South Asia, more women are employed in agriculture than men—66% and 71% respectively. Though vital, their role is often undervalued, and they remain largely excluded from the resources they need to be successful.

 

Climate change exacerbates this inequality. With limited land titles or assets, women struggle to secure credit to help them recover from weather-related damages. Without access to capital, training or technical assistance, they’re less-equipped to adopt climate-smart practices or increase crop yields that could help them mitigate future impacts. And as more extreme weather events affect communities across the globe, women are often left to pick up the pieces in their roles as unpaid carers.

 

In ofi’s supply chains, women play a pivotal role - as landowners, family workers, hired workers and extension agents and traders. Imagine the transformative potential if these women were fully empowered - how much stronger, more resilient, and more sustainable our food systems could be.

 

The case for making climate action more inclusive

 

The UN estimates that if all women smallholders had equal access to resources, their farm yields would rise by 20-30% per cent and carbon dioxide emissions could be reduced by 21 gigatons by 2050 through improved farm practices. That’s twice the annual emissions of China.

 

Women often perform specialised care-taking tasks on farms like soil and water management, seedling and nursery management, pest control, and post-harvest processing, making them critical to adoption of new climate-smart technologies and practices at scale. In our own programs, we’ve seen that women tend to embrace climate-smart agriculture practices at higher rates than men when provided with the right training.

 

In northern Vietnam for example, my colleague Yen and her team are running an organic cassia program, where 18% of the participants are women. With no formal agricultural training, the women have replaced chemical fertilizers with organic matter, incentivized by the higher price they can get for selling organic and the additional quality premium ofi offers.

 

We’ve also learnt that when able to, women are more likely to reinvest more of their earnings in their families and communities than their male counterparts, improving food security and reducing the risk of child labor. A Village Savings and Loan Association (VSLA) set up by our cocoa team in Cote D’Ivoire has enabled women to venture into vegetable cultivation and even set up a hair salon. These independent income streams help women finance their children’s education and reinvest into the collective savings pot to serve their community.

 

Our role on the path to empowerment

 

Unlocking the potential of women requires investment in education and training programs, ensuring they have access to credit and technology, and creating spaces for them to lead. Women must be brought into the decision-making processes at every level—from local farming communities to global policy discussions.

 

We do this either through setting up dedicated programs for women or building in inclusion initiatives to existing ones. In Brazil, where many women play ‘supporting roles’ in coffee production despite owning farms, we created Café Delas, a specialty coffee brand produced exclusively by women. When roasters buy Café Delas they get specialty coffee that’s 100% traceable and ofi reinvests three cents per pound from every sale into training and tools for these women to help them run and develop a successful coffee enterprise.

 

Some of my proudest moments at ofi have been hearing from women who since joining our programs have gained the confidence to engage in leadership roles. Women like coffee farmer Normalina who is taking part in the ‘Coffee for Communities’ program with roaster Tim Hortons in Indonesia. Over half the participants are women, born into a coffee culture in North Sumatra where they are rarely recognized as farmers. Equipping them with technical and land-management skills helps them become decision-makers and leaders on their farms.

 

I am moved by Normalina’s proud words: “The project has given me the confidence to take charge of my farm and contribute more to my community.”

 

ofi’s combined activities reached nearly 90,000 women across our global supply chains last year, delivering GAP training, inputs, credit, technical skills and income diversification resources. The wide view we take across the value chain means we know the interconnected benefits this can deliver - from safeguarding children, to increasing adoption of climate smart practices. Which is why we’ve set ourselves a dedicated target to scale our impact and support 250,000 women to improve their livelihoods by 2030, under ofi’s Choices for Change sustainability strategy.

 

To guide these efforts, we’ve developed a global toolkit to help our field teams improve women’s inclusion in their supply chains. Teams using the toolkit take a quick assessment to determine their position on an inclusion roadmap and select from a comprehensive compendium of activities – like training, access to infrastructure and inputs, and community development - to implement in their regions according to the local context.

 

This year’s International Women’s Day theme is ‘Accelerate Action’. Empowering more women in agriculture can help shift away from a narrow focus on productivity to a broader vision that includes sustainability, resilience, and social equity. This is the kind of leadership the world needs in the face of climate change.

Orange ofi banner Ofi card

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