Alfons van Gulick. Chairman SSI Chairman & CEO NEDSPICE

Transcription

1 Alfons van Gulick Chairman SSI Chairman & CEO NEDSPICE

2 Sustainability: Why Our Industry and Your company needs Sustainability

3 Why Our industry and Your company needs Sustainability! 1. What do we mean by Sustainability? 2. Sustainability a must for your company s future! 3. Why our industry needs Sustainability the challenges 4. Solutions 5. The Sustianable Spices Inititative 6. Local Platforms 7. Q&A

4 What do we mean by sustainability?

5 Sustainable Development Meeting the needs of the present without compromising the ability of future generations to meet their own needs UN Report by Norway s former prime minister Gro Harlem Brundtland Triple Bottom Line - People, Planet, Profit 1995 John Elkington Transforming our World: The 2030 Agenda for Sustainable Development 2015 Resolution adopted by the United Nations General Assemby

6 SUSTAINABILITY a long term investment in a transparent supply chain

7 Sustainability, a must for your company s future

8 Corporate Sustainability Does the pursuit of corporate sustainability have a positive impact on the financial performance of a company? SUSTAINABILITY a long term investment in a transparent supply chain

9 Corporate Sustainability The Commitment of a business to contribute to sustainable economic development, and to work with employees, their families, local community and society at large to improve their quality of life World Business Council for Sustainable Development SUSTAINABILITY a long term investment in a transparent supply chain Creating and Preserving long-term shareholder value by embracing opportunities and managing risks arising from social, environmental and economic factors The Mays Report Corporate Sustainability : an Investor Perspective

10 Improved Stakeholder Engagement/Relations Risk Avoidance: Boycotts, Negative Press, Activist Stakeholder Resolutions Compliance with Regulations, Industry Standards, NGO Concerns Customer Access Value Preservation & Creation New Products New Markets Employee Morale, Retention, Loyalty, and Recruitment Cost Savings and Productivity Customer Loyalty Price Premium Improved Corporate Governance Access to Raw Materials/Products License to Operate/Access to Capital Reputation/ Brand Warren & Thomsen 2012

11 Why does our SUSTAINABILITY a long term investment in a transparent supply chain industry need Sustainability?

12 The spice sector needs change! Our Credibility is at stake!

13 Key sustainability concerns addressed 1. Traceability 2. Food Safety & Quality Transparency Tracking & Tracing Control Microbiological contamination Agrochemical use & residues Toxins Allergens Heavy metals Adulteration 3. Supply 4. Reputation & Social Responsibility Restricted entrance to markets Quality problems Low productivity Farmers leaving spices for other crops Price volatility Health and safety Decent work for women, migrants, and elimination of child labor Smallholder livelyhoods Biodiversity Waste&water management

14 SUSTAINABILITY a long term investment in a transparent supply chain Solutions

15 Solutions Inclusive : outreach to the stakeholders i.e. farmers, governments, NGO s, trade associations, processing companies, retail, SUSTAINABILITY a long term investment in a transparent supply chain Knowledge sharing and education Change in regulations and law Co-funding producer support projects Create demand for sustainable spices Building commitment

16 Business to farmers: assuring future production at improved livelyhood conditions Traceability: control and link farm to the consumer Companies closer to farmers: building loyalty and insight Realising Sustainable objectives A positive story, e.g. source of living for smallholders Credibility and market access

17 The Sustainable Spices Initiative

18 Product Categories Spices Dehydrated Vegetables Herbs

19 The Sustainable Spices Initiative Private companies & NGO s Intervention Projects Local Platforms SSI Vietnam SSI India

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21 2025 Covenant +10% Commitment % Ambition % End goal Vision Ambition Fully sustainable spices production and trade in the sector (100%) > 25% sustainable sourcing in at least 3 top products in 2025 Commitment Achieve or exceed 10% point growth for top 3 products in 2021

22 Intervention Projects Child Labour Living Wages Gender Equality Deforestation Food Safety 22

23 SUSTAINABILITY a long term investment in a transparent supply chain Local Platforms

24 SUSTAINABILITY a long term investment in a transparent supply chain SSI - Vietnam

25 SSI Vietnam MARD Ministry of Agriculture and Rural Development Partnership for Sustainable Development Vietnam Vietnam Pepper Coordination Board The Pepper Task Force ESA advisory role ASTA - advisory role PPD IDH SSI Vietnam 25 VPA Private Partners

26 SSI Vietnam Actions ASTA, ESA, IDH to co-invest in hiring of staff for Pepper Task Force Promote setting up backward integration projects private companies Nedspice, McCormick, Olam, 0thers Set up Vietnam Pepper Coordination Board (2018) Develop National Sustainability Curriculum for Pepper (2018) Develop farmer app on use of agro-chemicals Work together with organization Croplife on improved application of Agro-chemicals Results Pesticide Carbendazim banned from use in Vietnam for pepper Discussion ongoing to ban other pesticides Partnering with PPD (Plant Protection Department) in reduction of pesticide application

27 SUSTAINABILITY a long term investment in a transparent supply chain SSI - India

28 SSI India Trained 24,000 small-holder farmers on sustainable agricultural practices Reaching approximately 25,000 ha Members: Nedspice, Jayanti Group, Kancor Ingredients, Akay Spices, Nani Agro, World Spice Organization, Synthite, Nestle India, ITC Limited, Griffith Foods and Olam 28

29 AA Coriander 1100 farmers, 3000 Mt ACF cumin 3500 farmers, 5400 MT DSC, Chili 2400 farmers, 3400 MT SSI-I 20,000 Farmers, 50,000 MT APPRO Cumin 5000 Farmers, 7200 MT CC- cumin 1200 women farmers, 2100 MT STAC, turmeric 4000 farmers, 3500 MT PRDIS, Chili, 2500 farmers, 6700 MT 29

30 Market transformation towards a sustainable spices and herbs supply chain 30

31 SUSTAINABILITY a long term investment in a transparent supply chain Other international or local standards SAI/FSA IMO/Fair for Life Sedex/Smeta UTZ/UEBT Company standards Credible and effective labels Benchmark tool for SSI

32 ?? So, what does it mean to be a member of SSI? Make clear statement to the market that your care about people, planet and profit Work in a pre-competitive manner to improve our supply chains Share knowledge in a pre-competitive manner Commit to SSI s objectives What do you receive being a member of SSI? Access to information (newsletters, member meetings, standards, ) Recognition in the market place Platform to discuss issues with like-minded colleagues in the industry and voice your concerns Tools for improved management in today s demanding environment

33 ! What do you need to do as a member of SSI: Depending on where you are in the supply chain you need to take actions Origin operators/ processor engage in backward integration projects to work with governments and educate farmers Importers/manufacturers work with origin operators and participate in backward integration projects. Commit to source sustainable product Retail commit to source ingredients from sustainable suppliers

34 ! How to become a member of SSI: Contact a SSI member Check out our website Jan Gilhuis gilhuis@idhtrade.org Alfons van Gulick avgulick@nedspice.com

35 Join the