Implementing a Strategy to Achieve Social License

Transcription

1 Implementing a Strategy to Achieve Social License Sean Royer, Exec Director Environmental Stewardship Division Alberta Agriculture and Rural Development Agronomy Update 2015

2 Introduction 1.Definition of social license 2.Drivers of Change 3.Industry Response 4.Lessons Learned 5.Steps Forward

3 Social License Definition: The privilege of operating with minimal formalized restrictions (legislation, regulation, or market requirements) based on maintaining public trust by doing what s right. Public Trust: A belief that activities are consistent with social expectations and the values of the community and other stakeholders. * Centre for Food Integrity

4 Compliance Markets (eg. GHG) Regulatory based Command & Control. Regs inflexible Regs are minimum requirements No trust Usually one component GHG, air quality, water quality, wetlands Paper trail and line of sight for everything Rigorous data check every year Government oversight Public policy guided Retail Markets (eg. Sustainable beef) Consumer based Flexible, growing & improving system Guidelines for improvement Trust Production system + supply chain integration Accepting of common business practice. Assurance that the system is in place Private sector industry oversight Private policy guided >>>>>..????

5 Drivers of Change 1.Changing Consumer 2.Role of NGOs 3.Changing Definition of Business

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7 Food Pyramid According to the Water Footprint

8 Lean Finely Textured Beef Product in market for decades Scientifically proven process Long-standing media interest 2008 LFTB featured in Food, Inc. April 2011 Jamie Oliver March 2012 ABC News Tied to school lunch program Pink Slime goes viral Increased pressure on brands to remove/label

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10 Benetton, Primark, WalMart Worker Deaths Raise Questions TAZREEN at an Apple and Contractor Collapse in China New York Times, December 11, 2013

11 Canadian s Knowledge of Farming Consider themselves knowledgeable, 7% Know a little, 45% Know very little or nothing of farming, 47% Source: Study of Canadian attitudes towards food and farming 2012 Ipsos Reid Note: Does not add up to 100% due to rounding

12 Conflicting Philosophical Frameworks

13 Significant Social Shifts* (Centre for Food Integrity) MODERN (Before 1968) POST-MODERN (After 1968) Authority is granted by office Broad social consensus driven by WASP males Communication is formal, indirect (mass communication) Progress is inevitable * Centre for Food Integrity Authority is granted by relationship No single social consensus, great diversity, many voices Communication is informal, direct (masses of communicators) Progress is possible

14 Consolidation, Integration and Industrialization

15 Who Do They Believe - Environment Believability: Environment University Env-Sci Professor Env Engineer Farmer/Rancher David Suzuki Gov't Env. Researcher Farmer's Assoc. Env Advocacy Group 53% 45% 36% 43% 74% 63% 69% 59% 59% 58% 61% 55% 65% % 20% 40% 60% 80% Source: Study of Canadian attitudes towards food and farming 2012 Ipsos Reid

16 Who Do They Believe Animal Welfare Veterinarian Unversity Animal-Sci Farmer/rancher A humane society Gov't Agency (Food/Farm) Farmer Assoc Other Animal Rights Believability: Animal Welfare 65% 57% 60% 47% 50% 44% 30% 31% 86% 77% 66% 59% 68% 59% % 20% 40% 60% 80% 100% Source: Study of Canadian attitudes towards food and farming 2012 Ipsos Reid

17 Food/Farming Information Sources Favourable Impressions: (Please rate your impressions of the different groups) Friends/Family/Word of Mouth Farmers 61% 61% Grocery Store/Retailer Humane Societies Environmental Advocacy Animal Right/Welfare Government Agencies 46% 40% 39% 36% 28% 0% 10% 20% 30% 40% 50% 60% 70% Source: Study of Canadian attitudes towards food and farming 2012 Ipsos Reid

18 Consumers are Tribal* The past matters. Perception is reality. (Not necessarily accurate.) Challenging beliefs/perceptions core to one s identity could cause them to become defensive & dismissive. * Centre for Food Integrity

19 The Mom Tribe Consumer Panel* What information sources have you used to come to your conclusions that GMOs are dangerous? * Centre for Food Integrity Heidi: I m part of a moms group. When there is a big consensus, I think there s something here. You don t need doctors or scientists confirming it when you have hundreds of moms.

20 Earning and Maintaining Social License (Sapp/CMA) Confidence Value Similarity Competence Influential Others Trust Social License Freedom to Operate Trust research was published in December, 2009 Journal of Rural Sociology

21 What Drives Consumer Trust? Shared values are 3-5X more important in building trust than demonstrating competence Trust research was published in December, 2009 Journal of Rural Sociology

22 Perfect Storm Removed consumer but who wants to know Increase in technology Resource constraints Lots of research pointing out the negative not so much on the positive Sustainability action plans

23 NGO Lobbying and Advocacy

24 Shifting the performance curve government regulation voluntary standards number of producers performance shift worse average 24

25 Capitalism is under siege The purpose of a business must be redefined around creating shared value (CSV) How to reinvent capitalism and unleash a wave of innovation and growth Porter and Kramer, HBR Jan-Feb 2011

26 Purpose of the Firm CAPITALISM 2.0 Capitalism 1.0 Capitalism 2.0 Maximize shareholder value; ROI; Growth Creating shared stakeholder value, including the Environment Legitimate capitals Financial Financial, Natural, Human, Social Bottom lines Profit -first Profit, People, Planet Source of financial capital Environmental and social impacts Accountability boundaries Stock market; Big financial institutions; Absentee owners Market focus Global Local Externalized The Firm Internalized Transparency As little as possible Naked Stock market; Smaller financial institutions; Customers; Employees; Local communities The Firm s value chain, over its products life cycles Business model Take-Make-Waste; Linear Borrow-Use-Return; Circular

27 CEOs SUSTAINABILITY DRIVERS UN Global Compact and Accenture study, survey of 766 worldwide CEOs, June 2010

28 CEO MINDSET IS SHIFTING Sustainability should be fully embedded in strategies and operations acted upon by boards 72% 69% 96% 93% embedded in supply chains 50% % UN Global Compact and Accenture study, survey of 766 worldwide CEOs, June 2010

29 Industry Response

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34 Environmental Labels

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37 Beef Value Chain Roundtable - Sustainability Jeffrey Fitzpatrick-Stilwell Manager, Sustainability and Government Relations McDonald s Restaurants of Canada Ltd

38 Food Processors are Also Setting Targets

39 Other international Developments Phasing in mandatory sustainability requirements for its suppliers; by 2020 it will source 100% of its agricultural raw materials from suppliers who meet established sustainability metrics. Will begin sourcing sustainable beef in Canada by Focused on water, nutrition and rural development Require suppliers to disclose carbon emissions as part of updated sustainability plans Quality, responsibility, mutuality, efficiency, and freedom

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41 How Does Primary Agriculture take back the conversation??

42 Global Round Table for Sustainable Beef The Global Roundtable for Sustainable Beef (GRSB) is a global, multistakeholder initiative with a mission to advance continuous improvement in the sustainability of the global beef value chain through leadership, science and multi-stakeholder engagement and collaboration

43 Some of the members.

44 GRSB 5 Principles of Sustainable Beef 1.Natural Resources 2.People and Community 3.Animal Health and Welfare 4.Food 5.Efficiency and Innovation

45 Canadian Roundtable for Sustainable Beef Who are they? A national, multi-stakeholder initiative developed to advance existing and new sustainability efforts within the industry. An informal group made up of interested parties Is meant to complement the GRSB by applying its global principles to the Canadian beef industry.

46 Initial meeting participants

47 What have They done? Met in July, 2013 in Calgary and recently in Kelowna Determining how to apply the GRSB 5 principles to Canada Looking at verification or certification models to implement for the Canadian Beef industry. Discussing the governance structure of the roundtable.

48 McDonald s Pilot Working with a few producers to determine how to adapt sustainability principles on the farm. Developing metrics on sustainability. Has formed a McDonald s pilot advisory committee and steering committee

49 Canadian Round Table for Sustainable Crops Exactly the same as CRSB. First meeting in Winnipeg in March Next meeting in November. Governance structure and operating principles identical to CRSB. Technical committee applying for Growing Forward funding to gain a better understanding of metrics that can be used to measure sustainability.

50 Initial meeting participants

51 Others Pilot study by Alberta Barley, Wheat, Pulse, and Canola Canadian Field print initiative (Pepsico, Unilever, Walmart) Alberta Pulse Growers Carbon footprint Canadian Canola Growers Association Meeting EU requirements for bio-fuel. Alberta Potato Growers sustainability requirements of Frito Lay Egg Producers Sustainability strategy Food Processors - integrating sustainability into their operation.

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53 What is ARD Doing? Role is to be supportive and enabling for industry. Focused on five priorities: engagement, extension, research, policy and communication. Some Examples below but this is only scratching the surface!!!! Engagement: Engaged on Sustainability roundtable, McDonald s pilot project. Supporting roundtables with expertise and funding.

54 What is ARD doing cont d Extension: Tools and information to help producers link production costs to environmental attributes and opportunities for increased revenue. Encourage the use of greenhouse gas offsets through extension and education. Conducted Life Cycle Analysis for major livestock and crops in Alberta. Involved in promoting on-farm safety activities.

55 What is ARD Doing Cont d Research Leading research that develops integrated systems for disease and pest management and environmental sustainability. Impacts of stunning technology and other management techniques on animal welfare. Impact of animal feed on GHG

56 What is ARD doing Cont d Policy: Investing through Growing Forward to maintain and build on the great reputation of our agriculture industry with consumers in domestic and international markets. Are renewing Meat Inspection Regulations and legislation

57 What is ARD Doing Cont d Communication: Hosting a Social License conference on March in Leduc.

58 Lessons Learned Those who manage data well will be successful. Innovation and science will be a key driver. (e.g. Science to support certification/verification standards, new BMPs, etc.) Extension will become essential to evolve producers and processors from current state to a more sustainable state. May need a professional body to do verification and certification. Food companies will have to up their communication game. Avoid squirrel syndrome and focus on big picture.

59 Challenges for ARD. Industry may be changing faster then government can respond (e.g. Government may be pressured to take a more active role). Coordinating and measuring its role in social license.

60 What can Producers Do? 1. Influence major food companies (e.g. how do you make it low cost for your industry?) 2. Promote their industry in partnership with food companies. 3. Develop metrics with food companies that make sense.

61 What can Research Community Do? 1.Data will be King. How do we manage it? 2.MIT, Harvard, many others graduating MBAs with sustainability component. 3.Modeling, quality control 4.Science behind certification standards. 5.Science behind Best/better management practices

62 Questions and Discussion