master class "sourcing responsibly for natural capital"
TRANSCRIPT
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www.leadersfornature.com @Leaders4Nature
Master class II‘Sourcing responsibly for Natural Capital’
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BETTE HARMS
ADVISOR BUSINESS &
BIODIVERSITY
Coordinator of the Leaders for Nature Academy
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www.leadersfornature.com @Leaders4Nature
Natural capital
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www.leadersfornature.com @Leaders4Nature
Responsible sourcing
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Identify1
2 Assess
Measure
Take action
Integrate
Engage
3
4
5
6
Six steps to future-proof
your business
www.leadersfornature.com @Leaders4Nature
Natural Capital Road Map
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www.leadersfornature.com @Leaders4Nature
In company session
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www.leadersfornature.com @Leaders4Nature
Programme 16.30 Arrival
17.00 Welcome by Bette Harms (IUCN NL)
17.15 Presentation by Anniek Mauser (Unilever Benelux)
18.00 Presentation by Rolf Hogan (RSB)
18.45 Networking dinner
19.40Introduction to sourcing sustainable aluminium by Giulia Carbone (IUCN)
20.00 Introduction to sustainable agro-commodities by Jerwin Tholen (KPMG)
20.30 Incubator sessions on:
1. Agro-commodities by Heleen van den Hombergh (IUCN NL)
2. Aluminium by Giulia Carbone (IUCN)
21.15 Closing by Bette Harms
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www.leadersfornature.com @Leaders4Nature
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www.leadersfornature.com @Leaders4Nature
Anniek Mauser
• Director Sustainability at Unilever Benelux
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www.leadersfornature.com @Leaders4Nature
Rolf Hogan
• Executive Secretary of the Roundtable of Sustainable Biomaterials
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Rolf Hogan, Executive Secretary
Roundtable on Sustainable Biomaterials
Sourcing responsibly for natural capital
using certification
Leaders for Nature Master Class 16 June, Diergaarde Blijdorp.
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Getting it right!
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1. The Roundtable on Sustainable Biomaterials
2. The RSB Standard
3. RSB and natural capital
4. Biofuel to biomaterials and the bio-based economy
5. How RSB certification works
6. Beyond verification - additional benefits of certification
7. Choosing a ‘credible’ certification scheme?
Overivew of presentation
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Biofuels: the promise
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Biofuels: the social and environmental impact
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The Roundtable on Sustainable Biomaterials
2007 EPFL: WEF, UNCTAD, UNEP, Toyota, Shell, Petrobras, NWF, WWF
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RSB stakeholders
120+ organizations from 30 countries including 30 NGOs
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Governance
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Chamber 1: Biomass producers (17)
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Chamber 2: Biofuel producers (22)
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Chamber 3: Biofuel blenders and users (10)
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Chamber 3: Biofuel blenders and users
AeroMexico
Air China
Air France
Air New Zealand
British Airways
Cargolux
Cathay Pacific
Etihad Airways
GOL
JAL
KLM
Lufthansa
Quantas
SAS
United Airlines
Virgin Atlantic
Virgin America
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Chamber 4: Trade Unions & NGOs (4)
COVERCO
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Chamber 5: Social NGOs (6)
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Chamber 6: Environmental NGOs (17)
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Chamber 7: Government and academia (25)
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II. The RSB Standard
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Principles & Criteria
Guidelines on ESIA and Stakeholder EngagementPrinciples CriteriaLegality - Conform to national laws and international
agreements
Impact Assessment and Stakeholder Consultation
- Impact assessment & management plan- Free, Prior & Informed Consent, gender sensitive,
consensus-based- Business plan
Use of Technology, Inputs, & Management of Waste
- Information on use of technologies available- GMOs minimize risk & improve env / social
performance- Storage, use & disposal- Residues, wastes and byproducts
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Principles & Criteria
Principles Criteria
Greenhouse Gas Emissions
- 50% reduction over fossil fuels (EU: 35%)- Meet additional national requirements
Conservation [biodiversity]
- Conservation values of local, regional or global importance maintained/enhanced
- Ecosystem functions & services maintained/enhanced.
- Ecological corridors protected, restored or created to minimize fragmentation
- Prevent invasive species in adjacent areas
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Principles & Criteria
Principles Criteria
Soil - Maintain / enhance soil physical, chemical, and biological conditions
Water - Respect rights of local & indigenous communities- Water management plan - Not deplete beyond replenishment capacities- Enhance / maintain water quality
Air - Air management plan – identify & minimize pollution emissions
- Avoid / eliminate open-air burning
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Principles & Criteria
Principles Criteria
Human & Labor Rights
- Freedom of association, the right to organize, and the right to collectively bargain
- No slave labor - No child labor- Wages and working conditions respect laws and
international conventions - Occupational safety and health follow internationally-
recognized standards- Labor contracted through third parties
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Principles & Criteria
Principles Criteria
Rural & Social Development
- Socioeconomic status of local stakeholders improved- Special measures to benefit and encourage
participation of women, youth, indigenous communities and the vulnerable
Local Food Security
- Assess and mitigate risks to food security- Enhance the local food security of directly affected
stakeholders
Land Rights - Informal and formal rights established- Free, Prior, and Informed Consent
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III. RSB and Natural Capital
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- Conservation values of local, regional or global importance maintained/enhanced
- Ecosystem functions & services maintained/enhanced.
- Ecological corridors protected, restored or created to minimize fragmentation
- Prevent invasive species in adjacent areas
Conservation - biodiversity
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Water
Respect rights of local & indigenous communities
Water management plan
Not deplete beyond replenishment capacities
Enhance / maintain water quality
Soil
Maintain / enhance soil physical, chemical, and biological conditions
Air
Air management plan – identify & minimize pollution emissions
Avoid / eliminate open-air burning
Water, Soil, Air
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Certification is an excellent tool but cannot address all sustainability issues
Mostly limited to site-level issues
Usually do not address cumulative impacts
RSB has some landscape approaches for water and food security
It also encourages participating operators to engage at landscape / national level to address sustainability
Beyond the fence – landscapes approaches
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Bioscience and growing demand for food, feed, fiber and fuel is changing agriculture
Bio-based alternatives to energy and materials more mainstream
Plastics, pharmaceuticals, oil, lubricants, paints . . .
Bio-refinery model producing several food, energy and material outputs
IV. Biofuels to the Bio-based economy
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Biomaterials
RSB Certification applies worldwide and to all products derived from biomass, including:o Biofuels and bioenergy
o Bio-chemicals
o Bio-plastics & Biopackaging
o Fiber
o Food additives
o …
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V. How RSB Certification Works
Roundtable on Sustainable Biomaterials(Governance, Standard development)
Business Development Unit(marketing & implementation)
Accreditation Body
Certification Body
Certification Bodies Participating Operators
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1. Application
2. Public comment
3. Contract certification body
4. Screening / risk assessment / Green house gas calculator
5. Desk review
6. Field audit
7. Certificate issued
8. Ongoing audits
The Certification process
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Audit process for crop-based biofuels
Required Compliance
Feedstock Production
Trade/Transport
Feedstock Processing
Trade/Transport
Biofuel Production
Trade/Transport
Biofuel Blending
Trade Transport
Final Consumer
ENV/SOC GHG (LCA)
CoC
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Primary benefit
3rd party verification of sustainability
Beyond verification
Build capacity on a range of sustainability issues
Effective mechanisms to manage and monitor performance on environmental and social
Identify and mitigate risks
Improve management systems
Strengthen supply chains
VI. Benefits of certification
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Eastern Cape Provence
Moving South Africa forward towards oilseed certification
• “Presents a simplified structured approach to general business management including documentation of all the critical processes
• “Empowers the farmer to be in touch with the operations of his/her business and continuously track performance
• “Helps the farmer to continuously improve way of doing business which in itself creates sustainability”
Pilot project supported by NL Agency on 1000 hectares of maize and
soybean.
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RSB Smallholder Program
Certification can help:
• Provide market access
• Enhance sustainable
production and efficiencies
• Promote cooperation
RSB Program:
• Field projects to support
certification & link to markets
• Engage business to source
from smallholders and create
incentives for certification
(UN SE4All)
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VII. Choosing a ‘credible’ certification scheme
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ISEAL Alliance
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RSPO RTRSRSB
Bonsucro
ISCC NTA8080
2BSVs
REDCert Red TractorGreenergy Abengoa
Ensus SQC
Source: Searching for Sustainability: Comparative Analysis of Certification Schemes for Biomass Used for the Production of BiofuelsWWF Deutschland (2013), with support from the German Ministry for Food, Agriculture and Consumer Protection
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• Means of verification:• Certification scheme A: country has
ratified ILO convention CO29 (1930) on forced labour (175 countries)
or• Certification scheme B: auditors conduct
stakeholder surveys and staff interviews to figure out cases of forced labour
– Impact on Cost
No forced labour on farms
+ R
OB
US
TN
ES
S
-
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1. ISEAL Alliance member
2. Multi-stakeholder approach
3. Strong NGO support
4. Mission-driven organization
5. Realistic view of sustainability niche
What to look for
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Getting it right!
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Thank you!
For More Information
RSB Secretariathttp://www.rsb.org
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www.leadersfornature.com @Leaders4Nature
Questions and answers
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Networking dinnerWe will be starting again at 19.40
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www.leadersfornature.com @Leaders4Nature
Giulia Carbone
• Deputy Director of the Business and Biodiversity Programme at IUCN
• Management of the Aluminium Stewardship Initiative
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aluminiumaluminiumstewardship stewardship initiativeinitiative
Aluminium Stewardship Initiative:
A Value Chain ApproachRotterdam, 16 June 2014
KEYNOTE PRESENTATION
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Aluminium Growth Story
Lower GHG emissions through lighter vehicles and through its recyclability
Bringing energy efficiency for cities and building in an energy constrained world
Preserving food and medicines through its unique barrier properties
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Aluminium in Automobile Production
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Aluminium in Coffee Capsules
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Aluminium in Food & Beverage Packaging
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Industry is under increased scrutiny
From communities located around industry
Local communities
Environmental authorities
NGOs,
From stakeholders involved with the value-chain :
• Consumers, thus retailers
• Big brands who influence the entire supply-chain
• Product designers, architects, Material specifiers
Both contituencies require increased transparency
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Industry is under increased scrutiny
From communities located around industry
Local communities
Environmental authorities
NGOs,
From stakeholders involved with the value-chain :
• Consumers, thus retailers
• Big brands who influence the entire supply-chain
• Product designers, architects, Material specifiers
Both contituencies require increased transparency
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The ASI Standard
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The Aluminium Stewardship Initiative
• It brings together leaders in the aluminium value chain committed to maximising the value that their product and activities generate while minimising their negative impacts
• Supporting companies are: Aleris, Amcor Flexibles, AMAG/Constantia Flexibles, Audi, Ball Corporation, BMW Group, Constellium, Hydro, Jaguar Land Rover, Nespresso, Novelis, Rexam, Rio Tinto Alcan, and Tetra Pak
• ASI’s first goal is the development of the Aluminium Stewardship Initiative Standard
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The ASI Standard
The aim of the ASI Standard is to foster responsible resource management of aluminium through the entire value-chain
The Standard will define principles and performance criteria in the area of governance, environmental and social practices
ASI’s Standard-setting process will be a fully multi-stakeholder one, in compliance with ISEAL’s standard-setting code (V5.0), which establishes rules for legitimate and effective standard-setting processes
It will build on the many existing good practices and standards developed within the Aluminium industry and within other relevant sectors
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Sustainability “hotspots”
Material Stewardship
Energy and greenhouse gases
Bauxite residues, SPL and dross
Biodiversity Conservation
Human Rights
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Linking the various process steps through a Chain of Custody
• Company and/or facility level.
• Only relevant to the CoC of the aluminium which enters a facility for processing or handling and passing onto the next stage of the supply chain.
• Companies may be involved in the value chain of other metals this standard is only relevant at the facilities in the Aluminium value chain.
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Linking the various process steps through a Chain of Custody
Mass balance:o Administrative systemo No physical traceabilityo All material is either ASI compliant or eligible
for mixing
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The Standard Setting process
• The Standard Setting Group is the leading body in the development of the standard
• It includes the 14 companies supporting ASI and 15 non industry representatives
• With a balanced stakeholder representation from industry and non industry groups, the Standard Setting Group will review the various drafts and comments received during the consultation
• The Standard Setting Group conduct its business during face to face meetings (3 planned in 2014) to revise the comments received and decide what changes to make
• Two public consultations are organized during which the Draft ASI Standard is available to the public for comments
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The Standard Setting Group
15 non industry representatives selected for the expertise and reputation
Together with the representatives of the 14 ASI Companies will decide on the ASI Standards
These include include : Cleaner Production Center South Africa and India Ecofys EMPA – Materials Science and Technology Fauna Flora International Forest People Programme IndustriAll Social Accountability International Transparency International WWF
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The Standard Setting Process
73
First Standard Setting Group
review (21-23 January
2014)
First Public Consultatio
n (1 February -29 March
2014)
Second Standard Setting Group
review (13-15
May and 1-2 July 2014)
Second Public
Consultation (14 July –
7 September
2014)
Third Standard Setting Group review (23-25
September 2014)
Final approval
and launch of ASI
Standard Version 1
(by 31 December 2014 - to
be confirmed)
COMPLETED
COMPLETED
IN PROGRESS
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ASI Standard Implementation
Different options being discussed, from Third party Certification to Public Reporting Platform
A Stakeholder Forum will be maintained
ASI will establish its self as an independent organization
Role of an Initiative vs role of the relevant Industry associations
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Key Challanges
The standard can be designed for the leaders or designed for “entry level” performance
Should the sustainability issues be addressed only by a sub section of the value chain (where these issues are more prominent) or a due diligence process should determine where the issues need to be addressed?
Voluntary standards at global level and different local requirements
Building a critical mass of industry and non industry stakeholders : why non industry don’t want to participate? Why certain industry take the leap of faith and participate.
From the commercial/consumer goods producers: they are aware that they won’t be able to source 100% ASI material – so risk of under-delivering
Implementation: Ensure that there is enough material flowing Costs of verifications seen as a barrier75
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Questions
1. What sustainability issues have your customers raised in relation to your use of metals?
2. Implementing a Standard: what are the possible options (in terms of systems and verification) that would guarantee credibility to your sourcing scheme?
3. Tracing back: how important is this for you? 76
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aluminiumaluminiumstewardship stewardship initiativeinitiative
Giulia CarboneDeputy Director
Business and Biodiversity ProgrammeIUCN
[email protected]/business
www.aluminium-stewardship.org
For further information
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The Second Standard- Setting Group Meeting
15-17 May 2014 • Gland Switzerland
CLOSE-UP
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CLOSE-UP
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CLOSE-UP
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www.leadersfornature.com @Leaders4Nature
Jerwin Tholen
• Associate Director at KPMG Sustainability
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Introduction to sustainable agro-commodities
An analysis conducted on behalf of PBEE, CBL, FNLI, IUCN, N&M and VNO-NCW
KPMG Sustainability
16 June 2014
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85© 2014 KPMG Advisory N.V., ingeschreven bij het handelsregister in Nederland onder nummer 33263682, is een dochtermaatschappij van KPMG Europe LLP en lid van het KPMG-netwerk van zelfstandige ondernemingen die verbonden zijn aan KPMG International Cooperative (‘KPMG International’), een Zwitserse entiteit. Alle rechten voorbehouden. Gedrukt in Nederland. De naam KPMG, het logo en ‘cutting through complexity’ zijn geregistreerde merken van KPMG International.
Setting the scene…..
Opportunities for the sector…..- From 7 to 9 billion by 2035- Middle-class purchasing power
+172% by 2030- Demand for food +50%
However………..- Between 5-8 million ha/year lost- 85% of fish species is‘at risk’
Opportunities and risks… … recognized in international food industry
- 90%: ‘social and environmental risks for profitability’
- 60%: ‘negative impact on pricing’
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86© 2014 KPMG Advisory N.V., ingeschreven bij het handelsregister in Nederland onder nummer 33263682, is een dochtermaatschappij van KPMG Europe LLP en lid van het KPMG-netwerk van zelfstandige ondernemingen die verbonden zijn aan KPMG International Cooperative (‘KPMG International’), een Zwitserse entiteit. Alle rechten voorbehouden. Gedrukt in Nederland. De naam KPMG, het logo en ‘cutting through complexity’ zijn geregistreerde merken van KPMG International.
Three commodities, three strategies
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87© 2014 KPMG Advisory N.V., ingeschreven bij het handelsregister in Nederland onder nummer 33263682, is een dochtermaatschappij van KPMG Europe LLP en lid van het KPMG-netwerk van zelfstandige ondernemingen die verbonden zijn aan KPMG International Cooperative (‘KPMG International’), een Zwitserse entiteit. Alle rechten voorbehouden. Gedrukt in Nederland. De naam KPMG, het logo en ‘cutting through complexity’ zijn geregistreerde merken van KPMG International.
Soy: Forecasting based on historic values
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88© 2014 KPMG Advisory N.V., ingeschreven bij het handelsregister in Nederland onder nummer 33263682, is een dochtermaatschappij van KPMG Europe LLP en lid van het KPMG-netwerk van zelfstandige ondernemingen die verbonden zijn aan KPMG International Cooperative (‘KPMG International’), een Zwitserse entiteit. Alle rechten voorbehouden. Gedrukt in Nederland. De naam KPMG, het logo en ‘cutting through complexity’ zijn geregistreerde merken van KPMG International.
Soy: Growth, growth and growth
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89© 2014 KPMG Advisory N.V., ingeschreven bij het handelsregister in Nederland onder nummer 33263682, is een dochtermaatschappij van KPMG Europe LLP en lid van het KPMG-netwerk van zelfstandige ondernemingen die verbonden zijn aan KPMG International Cooperative (‘KPMG International’), een Zwitserse entiteit. Alle rechten voorbehouden. Gedrukt in Nederland. De naam KPMG, het logo en ‘cutting through complexity’ zijn geregistreerde merken van KPMG International.
Soy: Possible solutions: how, where or not….
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90© 2014 KPMG Advisory N.V., ingeschreven bij het handelsregister in Nederland onder nummer 33263682, is een dochtermaatschappij van KPMG Europe LLP en lid van het KPMG-netwerk van zelfstandige ondernemingen die verbonden zijn aan KPMG International Cooperative (‘KPMG International’), een Zwitserse entiteit. Alle rechten voorbehouden. Gedrukt in Nederland. De naam KPMG, het logo en ‘cutting through complexity’ zijn geregistreerde merken van KPMG International.
Possible solutions for soy
Examples of strategic directions and possible solutions- Optimize the supply chain: Support programs that strive to comply with local
legislation- Control the supply chain: Increase yield of small-scale farmers in India- Control the supply chain: Certify responsible soy- Innovation: Substitute soy with seaweed
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91© 2014 KPMG Advisory N.V., ingeschreven bij het handelsregister in Nederland onder nummer 33263682, is een dochtermaatschappij van KPMG Europe LLP en lid van het KPMG-netwerk van zelfstandige ondernemingen die verbonden zijn aan KPMG International Cooperative (‘KPMG International’), een Zwitserse entiteit. Alle rechten voorbehouden. Gedrukt in Nederland. De naam KPMG, het logo en ‘cutting through complexity’ zijn geregistreerde merken van KPMG International.
Sugar cane: Forecasting based on historic values
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92© 2014 KPMG Advisory N.V., ingeschreven bij het handelsregister in Nederland onder nummer 33263682, is een dochtermaatschappij van KPMG Europe LLP en lid van het KPMG-netwerk van zelfstandige ondernemingen die verbonden zijn aan KPMG International Cooperative (‘KPMG International’), een Zwitserse entiteit. Alle rechten voorbehouden. Gedrukt in Nederland. De naam KPMG, het logo en ‘cutting through complexity’ zijn geregistreerde merken van KPMG International.
Sugar cane: Growth, growth and growth
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93© 2014 KPMG Advisory N.V., ingeschreven bij het handelsregister in Nederland onder nummer 33263682, is een dochtermaatschappij van KPMG Europe LLP en lid van het KPMG-netwerk van zelfstandige ondernemingen die verbonden zijn aan KPMG International Cooperative (‘KPMG International’), een Zwitserse entiteit. Alle rechten voorbehouden. Gedrukt in Nederland. De naam KPMG, het logo en ‘cutting through complexity’ zijn geregistreerde merken van KPMG International.
Sugar cane: Possible solutions: how, where or not….
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94© 2014 KPMG Advisory N.V., ingeschreven bij het handelsregister in Nederland onder nummer 33263682, is een dochtermaatschappij van KPMG Europe LLP en lid van het KPMG-netwerk van zelfstandige ondernemingen die verbonden zijn aan KPMG International Cooperative (‘KPMG International’), een Zwitserse entiteit. Alle rechten voorbehouden. Gedrukt in Nederland. De naam KPMG, het logo en ‘cutting through complexity’ zijn geregistreerde merken van KPMG International.
Possible solutions for sugar
Stevia - In 2012/2013 featured in 30% of
global chocolate launches - Vegetable, 300 time more sweet- Areable land -80%
- CO2 emissions -72%
- Water -96%
Increased utilization of sugar cane- More sustainable than sugar cane- Increase competitive strength- Approach Veldleeuwerik results in more EUR/ha, supply chain intergration, nature
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95© 2014 KPMG Advisory N.V., ingeschreven bij het handelsregister in Nederland onder nummer 33263682, is een dochtermaatschappij van KPMG Europe LLP en lid van het KPMG-netwerk van zelfstandige ondernemingen die verbonden zijn aan KPMG International Cooperative (‘KPMG International’), een Zwitserse entiteit. Alle rechten voorbehouden. Gedrukt in Nederland. De naam KPMG, het logo en ‘cutting through complexity’ zijn geregistreerde merken van KPMG International.
Possible solutions for fish oil
How to make the current fish oil catch more sustainable- 4% of fish oil use is MSC certified- Fish oil from fish waste directly
after catch
Substitute fish oil with alternatives- Rapesead oil commonly used alternative- Algae oil and insect oil offer opportunities
• Scaleable?• Low impact on biodiversity• Omega 3
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96© 2014 KPMG Advisory N.V., ingeschreven bij het handelsregister in Nederland onder nummer 33263682, is een dochtermaatschappij van KPMG Europe LLP en lid van het KPMG-netwerk van zelfstandige ondernemingen die verbonden zijn aan KPMG International Cooperative (‘KPMG International’), een Zwitserse entiteit. Alle rechten voorbehouden. Gedrukt in Nederland. De naam KPMG, het logo en ‘cutting through complexity’ zijn geregistreerde merken van KPMG International.
How could your company act tomorrow?
What are the risks of security of supply of these commodities?
2
3Which steps can I take to mitigate these risks?
Which commodities am I dependent on?1
4How will I realise these steps that are both inside and outside my scope as a company?
Four fundamental questions for businesses to develop and implement strategic solutions:
Response
Supplierdevelopment
Reg
ain
co
ntr
ol
of
su
pp
ly c
hai
n
Integrate backwards
Invest in land / assets
Inn
ov
ate
Develop niche markets
Alternative supplier partnership models
Longer term supplier contracts
Get
mo
re
mil
eag
e fr
om
su
pp
ly c
hai
n
Diversify supplier network
Substitute / develop new materials
Intervention on early stages of value chain
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Dit document is uitsluitend bestemd voor u en mag zonder onze toestemming niet worden verspreid aan andere partijen. KPMG Advisory N.V. (“KPMG”) garandeert of verklaart niet dat de informatie in het document geschikt is voor de doelstellingen van anderen dan de geadresseerde.
Het is niet de verantwoordelijkheid van KPMG om informatie te verstrekken die op enig moment na de datum van het document bekend is geworden. KPMG aanvaardt geen aansprakelijkheid jegens anderen dan de geadresseerde van het rapport.
© 2014 KPMG Advisory N.V., ingeschreven bij het handelsregister in Nederland onder nummer 33263682, is een dochtermaatschappij van KPMG Europe LLP en lid van het KPMG-netwerk van zelfstandige ondernemingen die verbonden zijn aan KPMG International Cooperative (‘KPMG International’), een Zwitserse entiteit. Alle rechten voorbehouden. Gedrukt in Nederland. De naam KPMG, het logo en ‘cutting through complexity’ zijn geregistreerde merken van KPMG International
Jerwin Tholen
T: 06 51367334
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www.leadersfornature.com @Leaders4Nature
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www.leadersfornature.com @Leaders4Nature
Incubator sessions
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www.leadersfornature.com @Leaders4Nature
What’s next?Master class 3 ‘The first steps of natural capital accounting’
On the 9th of September at the Ministery of Economic Affairs
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www.leadersfornature.com @Leaders4Nature
Thank you!