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Rainforest Alliance Certified TM Cranfield 16 June 2009 Sustainability Goes Mainstream

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Rainforest Alliance CertifiedTM

Cranfield

16 June 2009

Sustainability Goes Mainstream

© Copyright 2008 Rainforest Alliance 2

The Rainforest AllianceAn international, nonprofit environmental and sustainable development organization.

Our mission is to protect ecosystems and the people and wildlife that depend on them by transforming …

Consumer Behaviour

Business practices

Land use practices

© Copyright 2008 Rainforest Alliance 3

Rainforest Alliance programmes Forestry

Work with local and indigenous communities to produce more efficiently and at higher quality for international markets.Certified 130 million acres in 60+countries

Agriculture3% of the world’s coffee3% of the world’s tea18% of the world’s bananasCocoa, citrus, mangoes, pineapple, flowers, ferns, passion fruit, brazil nuts, other

TourismImprove sustainability of tourism operationsConserve local ecosystemsRecycling, water conservation and waste management

Other: Climate, Monitoring and Evaluation, Education..

A 22 years old organization with work in 63 countries. 300 staff based in 13 countries; an operating budget of $30m; 35,000 members and $3bn in annual sales of Rainforest Alliance CertifiedTM products. Almost 35,000 farms certified (1.3m acres); 130 million acres of certified forests in 1,900 operations. Trained 1,500 tourism entrepreneurs in best practices for sustainable tourism.

© Copyright 2008 Rainforest Alliance 5

Sustainable Agriculture

© Copyright 2008 Rainforest Alliance 6

6

Developed with input from:

NGOsIndustryScientistsFarmersFarm workersGovernment

The Principles of Sustainable Agriculture

(The Sustainable Agriculture Network Standard)

1 Social and Environmental Management System

2 Ecosystem Conservation3 Wildlife Protection4 Water Conservation5 Fair Treatment and Good

Working Conditions for Workers6 Occupational Health and Safety7 Community Relations8 Integrated Crop Management9 Soil Management and

Conservation10 Integrated Waste Management

© Copyright 2008 Rainforest Alliance 7

Economics Environment EthicsA holistic view of integrated challenges

© Copyright 2008 Rainforest Alliance 8

Impacts on the ground: EconomicFarm management plan

Integrated crop management

Integrated waste management

It is about more than price, it is about farmers learning to control their own futures

© Copyright 2008 Rainforest Alliance 9

Impacts on the ground: Social

Dignified treatment and good working conditions for workers

Occupational health and safety

Community relationsWell managed farms benefit the whole community

© Copyright 2008 Rainforest Alliance 10

Impacts on the ground: Environmental

Ecosystem conservation

Wildlife protection

Water conservation

Soil management and conservationMore collaboration

between farmers and conservationists

© Copyright 2008 Rainforest Alliance 11Finca Arroyo Negro

© Copyright 2008 Rainforest Alliance 12

© Copyright 2008 Rainforest Alliance 13

Beyond Certification…Monitoring and Evaluation

© Copyright 2008 Rainforest Alliance 14Wednesday, June 17, 2009

Working with companiesTransforming..

Land User PracticesBusiness practicesConsumer Behaviour

© Copyright 2008 Rainforest Alliance 15

FORESTRY

AGRICULTURE

TOURISM

Production Transformation Consumption

Landowner / leaseholder

Timber co. / government with cutting

rights

Plywood, paper, timber, veneer, wood fuel, and

other log-related industries

Secondary work:

furniture, construction,

etc.

Distributors Retailers Contractors Purchasers of end

product

Farmers Traders Wholesalers Packaged food manufacturers

Retailers Restaurants / end consumer

Hotels/ Excursions / Activities / Transportation

In-bound tour operators

Tourists / business travelers

/ companies

Forest certification, legality verification, and carbon sequestration verification

Sourcing Assistance

Capacity Building, Farm certification, carbon sequestration verification

Training in sustainable practices, carbon footprinting and offsets

Supply chain and market linkages, carbon offsets, information sharing

Out-bound tour operators

Forest product certification, legality verification, and carbon sequestration verification

Engaging companies, communications support, carbon offsets

Supply chain and market linkages, carbon offsets

Linkages to sustainable operations, carbon offsets

Across the entire value chain

© Copyright 2008 Rainforest Alliance 16

Nespresso AAA Project

TASQ was developed to allow the integration of the principles of sustainability as reflected in the farm assessment criteria of Rainforest Alliance and the quality managementprinciples of Nespresso”

Development and application of the Tool for the Assessment of Sustainable Quality (TASQ)

Rainforest Alliance Work at Origin

© Copyright 2008 Rainforest Alliance 17

TASQ NespressoTASQ Developed to serve – as an assessment tool for farms and wet mills for

sustainability and quality criteria – to provide an “enabling framework” to move farmers

forward in the performance of their farms.

Rainforest Alliance co-developed the tool, – Benchmarked SAN standard on the sustainability

component– “Train the the trainer” workshops for assessors and

verification of farm assessments.

Exporters required to implement the TASQ in all farms as part of the AAA program.

© Copyright 2008 Rainforest Alliance 18

Giving consumers a guarantee

Rainforest Alliance and Forest Stewardship Council

Credible, third party verification and seal of approval

Comprehensive guidelines that balance ecological, economic and social considerations

Reputation in sustainability

Traceability

© Copyright 2008 Rainforest Alliance 19

Case Studies: Chiquita

© Copyright 2008 Rainforest Alliance 2017/06/2009

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Chiquita production and costs

Total Owned Production

60%

70%

80%

90%

100%

110%

120%

130%

140%

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Productivity Cost/Box

Hurricane Mitch

Productivity increase of 27%, Costs down by 12%.

© Copyright 2008 Rainforest Alliance 21

Kraft: Different application in different markets

© Copyright 2008 Rainforest Alliance 22

Kraft approaches sustainability as part of its overall business strategy

“Making sustainability a part of every business decision”

Doing what's right while doing what's good for our business to:– Better manage costs – Drive growth

By making decisions that are:– Environmentally responsible– Socially Responsible – Economically Responsible

Kraft Approach to Sustainability

Design

Continuous ImprovementShort

Trans /Distribution

AgriculturalCommodities

EnergyWater

Waste Packaging

Design

© Copyright 2008 Rainforest Alliance 23

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McDonald’s: Leading Change

Eight months after launch of Rainforest Alliance Certified coffee in UK and Ireland:

Unit sales up 15% Coffee £ sales up 23% Two fifths of customers say Rainforest Alliance certification is ‘really important’One quarter want to know more about Rainforest Alliance Nine out of ten very or fairly satisfied with quality

© Copyright 2008 Rainforest Alliance 24

Food service Operators

The Entire Cocoa Production from Sustainable Sources by 2020

100,000 MT Rainforest Alliance CertifiedTM

Galaxy in UK Rainforest Alliance Certified in 2010

© Copyright 2008 Rainforest Alliance 26

Unilever 10+ years of working towards sustainability on their own estates:

Wanted to roll out sustainability across their entire supply chain

Independent Certification to be able to share with consumers

© Copyright 2008 Rainforest Alliance 27

The Rainforest AllianceCollaboration

Focus on how farms are managed (People, Planet & Profit)

Logical fit with Unilever’s own experience

Ability to work on an international scale and with both large-scale plantations and small farmers

Market-based premium for farmers

Ability to help move whole industry

© Copyright 2008 Rainforest Alliance 28

Global Commitment to sourcing all tea sustainably:

All tea used in PG Tips, Lipton Yellow Label tea bags in Western Europe sourced from Rainforest Alliance Certified™ farms by 2010

Extend Rainforest Alliance certification to all Lipton tea bags globally by 2015

© Copyright 2008 Rainforest Alliance 29

2007

The Journey…

© Copyright 2008 Rainforest Alliance 30

2009

The Journey…

© Copyright 2008 Rainforest Alliance 31

2014

The Journey…

© Copyright 2008 Rainforest Alliance 32

Communications

© Copyright 2008 Rainforest Alliance 33

Rainforest Alliance certified

packs

TV announcement “Take a sip”

National press, radio and PR

Short movie to inform and entertain

THE CAMPAIGN

2nd phase TV “Senor Al”

Promo packs

© Copyright 2008 Rainforest Alliance 34

© Copyright 2008 Rainforest Alliance 35

Thank You!

Rainforest Alliance Certified™www.rainforest-alliance.org