RTRS: Outcomes of Responsible Soy Syntegration Event and Strategy Update

Task Force Europe – Communications workshop

Schiphol-Rijk, March 16-17th

Anti-trust statement

As representatives of Round Table for Responsible Soy (RTRS) members and as participants in RTRS events, it is our shared responsibility to ensure that this meeting is conducted in accordance with the following: ”We shall not enter into any discussion, activity or conduct that may infringe, on its part or on the part of its members, any applicable competition law. By way of example, members shall not discuss, communicate or exchange, any commercially sensitive information, including information relating to prices, marketing and advertising strategy, costs and revenues, trading terms and conditions with third parties, including purchasing strategy, terms of supply, trade programs, or distribution strategy “

Strategy & Syntegration findings

European Task Force meeting

16-17 March 2016, Schiphol-Rijk

Olaf Brugman

Mission

Mission Encourage that current and future soybean is produced in a responsible manner to reduce social and environmental impacts while maintaining or improving the economic status for the producer. Through: • The development, implementation and verification of a global standard • The commitment of the stakeholders involved in the value chain of soybean

Vision

Vision

“That soy help to meet social needs, environmental and economic consequences of the present generation without compromising the resources and the welfare of future generations and allowing the construction of a better world through consensus and joint action.”

=> Sustainable!

Objectives

• Facilitate a global dialogue on soy

• Reach consensus among key stakeholders and players

• Act as Forum to develop and promote a standard of sustainability

• Act as an internationally recognized forum for the monitoring of global soy production in terms of sustainability.

• Mobilize diverse sectors interested in participating in the Round Table process

Inputs for Strategy

• Mission, vision, objectives • Build demand & supply

– Develop membership & commitments – Task forces – Communications – Innovate certification mechanism – Accelerate in Europe -> Syntegration – Develop in Brazil, Argentina, Paraguay, India, Canada

• Demonstrate capabilities and impacts in multitude of schemes, initiatives and pressing issues: climate, deforestation, social justice

• Inclusive: Multistakeholder, Producer organizations, iSeal accreditation, partnerships

• Principles & Criteria Innovation 2016: zero deforestation proposal

Syntegration to accelerate: “how to achieve 100% responsible

soy in Europe”

St. Gallen, 26-29 January 2016

On September 25th, 2015, 193 World Leaders committed to 17 Global Goals to reach 3 crucial objectives towards a better world: End poverty, halt climate

change and fight injustice and inequality. This is the biggest attempt in the history of the human race to make the world a better place.

On January 26th, 2016, 31 experts representing 26 organizations committed to the

“Responsible Soy Initiative” came together in Switzerland to make their contribution towards these 3 objectives.

Their Goal: “100% Responsible Soy in Europe”

Source: Malik Institute, 2016; Copied with permission

31 experts shaping Europe‘s future towards responsible soy

Malik Institute, St. Gallen January 26-29 2016


31 experts from 26 organizations contributed to the results. Among them …

•


The fundamental challenge: The Great Transformation of the Soy Industry

Sustainable Soy

Soy Industry Today

Opening Question

“What do we have to do, with our stakeholders or all together, to achieve 100% responsible soy products for food, feed and other applications

into and inside Europe by 2020?”

Evo

luti

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ary

pat

h o

f re

leva

nt

syst

ems

asp

ects

Past

Today

Future Time

Optimal path of development

Foundations of future existence

Foundations of present existence


The twelve subjects of the Syntegration = action fields

• Hyperlinks: lead to the results of the according topics in the appendix

Government Engagement: How can we achieve stronger government engagement for responsible soy?

Red

Create Pull: How can we create more pull for responsible soy from the demand side?

Black

Global Mapping: How can we achieve more transparency and a traceable supply base through global mapping?

Orange

Stepwise to Responsible Soy: What steps do we need to take, in order to effectively channel the different responsible soy initiatives towards common goals?

Green

Responsible Soy Alliance: What do we need to do to create a Responsible Soy Alliance that can enhance government & stakeholder engagement most effectively?

Gold

Commodity Collaboration: How can we collaborate more effectively with responsibility initiatives of other commodities?

Silver

Incentives: What can we do to increase the incentives for responsible soy throughout the supply chain?

White

Area Approach: How can an integrated area approach (for soy and other crops) increase the effectiveness of responsible soy monitoring?

Light

blue

Finance as Driver: How can we channel more money to “responsible operations” and thus use finance as a driver? Brown

Sharing Responsibility: What are the cost drivers for responsible soy and how can responsibility be shared effectively?

Yellow

Deforestation-Free: How can we create synergy with the deforestation-free commitments that are already high on the agendas?

Dark

blue

National Initiatives: What can we learn from successful national initiatives in soy and other commodities, and how can we create effective new national initiatives?

Purple


Executive Summary: 7 results at a glance

1. The platform for “Responsible Soy” has been ignited.

2. The 12 most important challenges have been identified within which 34 measures have been worked out.

3. The strong interconnection of subjects and measures calls for system-cybernetic navigational methods.

4. Only a “coalition of the able and willing” can turn the current reality of the soy industry into the envisioned future.

5.Culture eats strategy for breakfast! Common purpose and will for action can only be found in the MSS® Initiatives

6.Strategy is the blind spot in the “Responsible Soy Community”

7.Effective implementation through the “Transformation Navigation Hub”


Effective Governance is the most essential variable for moving the system

System diagnosis:

If the variable “Effective RS Governance” is deactivated, the number of reinforcing feedback loops is reduced to 12% (114 instead of 893).

System diagnosis:

If the variable “Effective RS Governance” is deactivated, the number of reinforcing feedback loops is reduced to 12% (114 instead of 893).


How to control the system? The Impact/Risk Map Overcome the inert state of the “Responsible Soy” System with effective interventions

No. Variable name

1 Complexity of Supply Chain

2 Effective RS Monitoring

3 Incentives for RS

4 Pull for RS

5 Effective RS Communication

6 Awareness of RS

7 SC Actors Engagement

8 Government Engagement

9 Availability of Funding

10 Cost of RS

11 RS Clarity

12 Collaboration

13 Effective RS Strategy

14 Effective RS Governance

15 Managerial Effectiveness

16 Level of RS

17 Negative Impact

18 Innovative Solutions

19 Transparency

1. 15 “Managerial Effectiveness”, 14 “Effective RS Governance”, and 11 “RS Clarity” are the most effective levers to initiate change in the system.

2. 7 “Supply Chain Actors Engagement” and especially 12 “Collaboration” are critical accelerators. A change in collaboration can have a strong effect on the system; but this variable is also strongly influenced by the system. In order to achieve effective collaboration, it requires simultaneous intervention from various angles in the responsible soy system.

3. 1, 2, 5, 6, 8, 9, 10, 13, 18 and 19 are self regulators. They can be used for implicit control. If the system is activated, they help to stabilize it.

4. 3, 4, 16 and 17 are indicators. The intended status will result from effective interventions in the active part of the system.

Directly influenceable levers (explicit system control)

Indicators

Self regulators (implicit control)


Accumulated effect Single effect1 of 12 (=35%) of the 34 actions, which account for 50% of the total systemic impact.

Single effect1 of the further 10 measures, which account for an additional 30% of the total systemic impact, together =80%.

Rel

ativ

e sy

stem

-cyb

ern

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ef

fect

acc

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ted

Rel

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-cyb

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ef

fect

per

act

ion

1) System-cybernetic effect = percental effect of each action on the overall system compared to effect of all actions.

64% of the actions equals 80% of the change effect within the Responsible Soy System Create a “Responsible Soy Alliance” and “Determine Multi-Stakeholder Governance” have the greatest systemic

impact

Sou

rce:

Mal

ik In

stit

ute

, 20

16

; C

op

ied

wit

h p

erm

issi

on

Black Silver

Yellow Dark

blue Purple

Red Gold Orange

White Light

blue Brown

Green

Topics/Actions/Projects

1 2 3 4 5 6 7 8

The Transformation Navigation Hub: How to turn initiatives into actions with clear accountability to drive

them forward?

9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 .. 34

Many different stakeholders

Black Silver

Yellow Dark

blue Purple

Red Gold Orange Light

blue Brown

Green

Topics/Actions/Projects

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 .. 34

Many different stakeholders

White

The interconnection of the 12 topics, the 34 measures and the relevant stakeholders of the “Responsible Soy Initiative” is immense (reaching a

potential of around 650’000). This demonstrates once again the level of complexity of the system. Without governance and coordination the implementation will be

cumbersome, conflict-laden and slow.

The interconnection of the 12 topics, the 34 measures and the relevant stakeholders of the “Responsible Soy Initiative” is immense (reaching a

potential of around 650’000). This demonstrates once again the level of complexity of the system. Without governance and coordination the implementation will be

cumbersome, conflict-laden and slow.

TNH TNH

Red

Black

Orange

Green

Silver

Yellow

Dark

blue

Purple

Brown

Light

blue

Gold

White

Pattern Filter

Action (initiating Solution Camps, providing

impulses, communication)

Environment

Δt: Adaptive regulation

Object Level Control Level

Information Data

The Transformation Navigation Hub is based on the Real Time Control Principle

Transformation Navigation Hub (TNH) Meta-Control

The Transformation Navigation Hub (TNH): Design of TNH Control Room

1. Project plan: Work packages, deadlines, resources, team

2. Real-Time status 3. Critical events 4. Cybernetic perspective of “Responsible

Soy Initiative” 5. Governance structures / cybernetic

control mechanisms 6. Overview of resources 7. Dynamic simulation & scenario planning


Syntegration conclusions

• Common sense of urgency high

• Common sense of purpose low

• Clarity on impacts, management en strong governance strongest levers

• Collaboration and SC involvement accelerators

• Responsible soy uptake is indicator

• Information to navigate and steer missing

Strategy conclusions

• Untapped “know & show” potential;

– contributions to positive impacts and risk mitigation

– Positioning on outrage issues

issue-savvy and involved communications

Strategy conclusions 2

• In view of Principles & Criteria best positioned to drive the ‘sustainable soy movement’

– Engage & dialogue with supply chain parties around challenges, risks, innovative solutions

– “Show us the money”: monitor and communicate progress (impact, implementation). Real time.

– Multistakeholder approach defines key controls and status dashboards

Strategy conclusions 3

• A collaborative and inclusive approach will further accelerate

• Strong governance & management are key

• Current P&C/standard is valuable asset

• Focus in organization and operations: certification and the sustainable soy movement are different tools

Next steps

• Update RTRS Principles & Criteria

• Develop proofs of concept for:

1. ‘sustainable soy movement’, incl options for collaborative alliance with sense of purpose;

2. ‘Multistakeholder navigation & progress control room’;

3. RTRS on certification & verification;

• Build & implement

Food

RTRS: Outcomes of Responsible Soy Syntegration Event and Strategy Update