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Agro-commodities and sustainable sourcing
Elements for practicing good
governance LFN-Platform BEE Master class June 16th 2014
INTERNATIONAL UNION FOR CONSERVATION OF NATURE
towards net positive impact on agro-commodity landscapes?
Practice and promote:• Sustainable sourcing: betting
on best quality • Resource efficiency: optimize
use• Extra good governance of
natural capital: investing in the landscape
www.leadersfornature.com @Leaders4Nature
CALLING THE RAIN WITH A THOUSAND MOUTHS
www.leadersfornature.com @Leaders4Nature
WHAT HAPPENS HERE IN NORTHERN ARGENTINA?
• Is it the farmer who didn’t rotate? Bad land use planning?
• Lack of water streams management?
• Accelerating regional climate change, shocks and
desertification in the Gran Chaco?
• Pushing nature over its limits?
Bad governance on all levels. Risk to producers. Risk to the
Argentina economy. Risk to Dutch productive sector
www.leadersfornature.com @Leaders4Nature
Biodiversity & agro supply chainsDeforestation/habitat destruction; fragmentation; degradation; pollution; invasion
Managing those risks and finding opportunities with Environmental and Social Management Systems supports:• supply security, • legality/operational security, • efficiency and cost saving of suppliers (eg RSPO:
savings on conflict and pesticides), • access to financial services• creation and sharing of values• positive future-proof reputation
www.leadersfornature.com @Leaders4Nature
Leaders for Nature natural capital roadmap• 1 Identify your impacts and dependencies on natural capital
• 2 Assess your business risks and opportunities
• 3 Measure and report on your impacts and dependencies
• 4 Take action to reduce your risks and capture opportunities
• 5 Integrate natural capital into your business strategy
• 6 Engage and jointly realize the transition towards a green and sustainable economy
www.leadersfornature.com @Leaders4Nature
Agro-commodity chains and the LfN 6 steps
• Identify Map your supply chains with most (potential) impact. Do you depend on them, to what extent? Who are your suppliers? Where does the product come from? Can you know this?
• Assess governance risks and opportunities for those value chains their sourcing areas and suppliers, and the leverage you have to assure sustainability
• Measure….potential costs and benefits of certification and other good governance actions you can take
www.leadersfornature.com @Leaders4Nature
agro commodities & 6 steps, continued
• Take action and demand/promote/ implement certification and other means to protect, manage and/or restore natural capital
• Integrate these principles, processes and the required certification systems in your sourcing policies and procurement rules (Codes of Conduct/Supply, Charter e.g. Eneco)
• Engage with others to promote the approach, share your knowledge and policies and create a stronger leverage
www.leadersfornature.com @Leaders4Nature
IFC Good Practice Handbook (196 page!)
“Assessing and Managing Environmental and Social Risks in an Agro-Commodity Supply Chain” (2013).
Concepts, tools and examples to:• assess chain risks and country risks,• identify your leverage and • create policies and guidance for staff and
suppliers according to your and their potential.
www.leadersfornature.com @Leaders4Nature
IFC examples:• An Environmental and Social Action Plan (plan, do,
check, act)• How to do a supply chain map• How to undertake a rapid diagnostic of supply
chain info• How to rate commodity and country risk factors• Elements of a supply chain policy• Examples of supply chain guiding principles• Guidelines for operations, suppliers codes of
conduct and score cards, contract clauses, communication, rewards! Complaint mechanisms….
www.leadersfornature.com @Leaders4Nature
Governability is often limited, can you support with positive action? IUCN NL tool:1. Context
Pressure on the land/resources? Level of conflict over resources, land, use and access rights?
2. Formal regulatory framework Regulatory capacity of government? Existence of a regulatory framework? Clarity & coherence of policies, laws and regulations Availability of or scope for authoritative land/resource use plans
3. Capacity, power and resources to implement or resist the regulatory framework: Of governments & companies to implement and enforce law and policy. Of local communities to e.g. be engaged in FPIC, use complaint mechanisms and
to claim their rights when violated. Availability and safety of watchdogs of the operations
4. Quality of institutions for interactions between stakeholders to define and implement the rules of the game Availability of effective communication and regulation mechanisms Availability of institutions for (legal) complaints, mediation facilities etc.
www.leadersfornature.com @Leaders4Nature
Sustainable sourcing:
Choose quality certification including good quality of control & Work towards traceability, CoC
Promote such systems, principles and criteria in sourcing policy and codes.
INTERNATIONAL UNION FOR CONSERVATION OF NATURE
Country A Country B
Good governance level
Gap: additional efforts needed
Issues adequately covered & in laws & regulations….?
The good governance gap in theory…and practice
www.leadersfornature.com @Leaders4Nature
IUCN NL (GOOGLE THE TITLE BETTING ON BEST QUALITY ), BENCHMARK OVERVIEW OF BIOFUEL, SOY AND PALM OIL STANDARDS: MIND THE LEVEL OF ASSURANCE OF A STANDARD!
“BETTING ON BEST QUALITY”
www.leadersfornature.com @Leaders4Nature
Resource efficiency:
• productivity increase /area boundary setting,
• reduce, reuse, recycle (cradle to cradle)
• cascade (= co-operate)• promote efficiency of use by
clients
www.leadersfornature.com @Leaders4Nature
Extra good governance measures biodiversity
Know your sourcing areas if possible. Do a governance opportunity and risk analysis and contribute positively, for example: • Respect, promote responsible land use planning and High
Conservation Value Area protection (private reserves? wildlife corridors?)
• Help restore HCVAs where needed• Help negotiate/provide REDD +/ carbon finance other PES
mechanisms for farmers, possibly in your sourcing areas• Co-operate with local conservation organizations to do so.
We can help find them.
www.leadersfornature.com @Leaders4Nature
• Sustainable sourcing of agro-commodities
• A company guide to promoting good governance
Draft/work in progress…..join in!
Thanks for being part of the effort!