- a sense of terroir
TERRA a Public Benefit Company
TERRA is governed as a Public Benefit Company. This entails that the company’s purpose is to create value that benefits society as a whole, besides the objective of generating a profit in order to remain operational and successful. Traditional businesses, once they go public or grow larger, have the obligation to its own organisation to maximise profits. In case those businesses put other priorities in the path of profit maximisation the shareholders or board can intervene. For TERRA, being a PBC, this intervention will not be possible as these principles have been outlined from the start.
Although generating healthy profits is fundamental to any successful business, maximising the profits at all costs, has brought us to the current global environment. An environment where everything is constantly about the absolute lowest possible cost to pay. A constant cost pressure that often hurts the ones that are at the very beginning of the supply chain. The protagonists of the raw materials, whatever that might be - from the grapes in your wine, to the oranges in your morning juice and from the cotton in your bedsheets to the leather in your shoes. That constant cost pressure has lead to companies cutting corners in the aspects of labor, environment pollution, product processing shortcuts damaging our health and the list continues. When a product is too cheap, it more often than not, means harm is being done somewhere in the supply chain. As consumers, that reality we often don’t want to see which leads to the current incredible divide we see in the world.
At TERRA we profoundly believe this is a broken system and if something needs to change it will be up to all of us, however small the individual change we make might be. We are also well aware that we won’t change this dynamic overnight, but many small companies driving for a change in the right course will accumulate.
Having said this, at TERRA, you will not find the cheapest product pricing, that is also not our aim. We charge a price which we believe is market conform and which also enables us to create value for the public benefit. Product quality stands central, we remunerate the producers of these products fairly and do not demand annual price decreases, although remaining competitive. We reinvest with our producers so year on year the quality can increase. We try to offset as much as possible the carbon footprint we create by importing the goods to our warehouse and delivering the produce to you your doorstep. This is a work in progress as we are trying to establish the most effective and transparent way to do this. TERRA product pricing therefore will account for fair profits in the entire supply chain, a healthy margin which will enable us to operate effectively and sustainably on the long term, and it will allow us to give back to society which we will report out on an annual basis. We are not competing for the lowest price, we are competing for the most substantial, positive societal impact.
The whole PBC topic will be in an evolving state as we go and grow. TERRA will publish annually a Public Benefit Report. This report will outline what part of the revenue has been allocated to public benefit. What has been accomplished with these funds, and what are the strategies for the year to come. Our objective is to provide as much transparency as possible.
The PBC Report will outline our accountability, our accountability to you, our customer, the society as a whole and communities we operate within, our employees and our partners. It outlines the standards we can be measured against for being the example in society we envision to be.
TERRA’s main PBC objectives for the year to come
1. 1% for the planet
Each year, we contribute one percent (1%) of our annual net revenues to nonprofit charitable organisations that promote environmental conservation and sustainability
2. Supply the best products with no unnecessary harm
That means the least possible chemical use, no forced labor practices, animal welfare, holistic farming practices, reduced supply chains.
3. Sharing best practices with other companies
Wherever we can we will share our practices to industry peers and share our knowledge.
4. Carbon footprint offset
We will pursue the best possible ways to offset the carbon footprint we generate by conducting our business.
5. Profit sharing
Our success is built on the quality that our producers supply to us. When we are successful because of the quality they deliver we share that success. Part of the profits will be shared back to the producers and reinvested in their businesses in order to increase quality year on year. These reinvestment projects will be outlined in the annual TERRA PBC report.
Our motto is - ‘Treat yourself - do well, by doing good.’