Supporting Better Management Practices in Agribusiness

Transcription

1 Supporting Better Management Practices in Agribusiness Catherine Cassagne, Program Manager & Dave Gibson, Senior Projects Officer Biodiversity Markets

2 The Biodiversity Markets Unit in CES/IFC Biodiversity Markets Practice - Sustainability Business Innovation Group, Environment and Social Development Department of the IFC Moving beyond compliance to IFC s Performance Standards Risk/cost reduction or new business opportunities Create or transform biodiversity-inclusive business models and markets 4 product lines in a typical R&D cycle: Eco-standards and sustainable supply chains Nature-based products and services Biodiversity Offsets Biodiversity-based finance

3 Driving Forces for Private Sector Concerns Regulatory Failure Market Distortions Consumers Concerns Private Sector Imperatives

4 Industry Response: Measurable Risk Reduction Safety & traceability Environmental & social values Improves workplace & workflow Interoperability & scaleability Cost of finance Pre-Gate Post-Gate Industry BRC IFS ISO SQF 1000 GlobalGAP Nature s Choice SAN GAP Organic Consumer SQF 2000 FairTrade CODEX Govt. Regulations Improves value chain confidence

5 Standards Often Theme not Commodity Food Safety HACCP- CODEX ISO Environment ISO 14001, EMAS QUALITY Social Accountability SA 8000 AA ILO Organic Labels NOP EU - JAS Workplace Safety OHSAS BSI ILO

6 Commodity Standard Elements Similar Multi-stakeholder process Industry well represented ISEAL & ISO Standard guides Compliance with regulations Address most egregious risks Product traceability Dispute resolution enabling Objective & verifiable progress Continuous improvement

7 Agro-Food Commodity Growth & Biodiversity

8 Why Did Roundtables Evolve? Need to reduce risk Coherent value chain approach needed Food chain integration & consolidation Forum for pre-commercial thinking Importance of financial institutions growing Metaforces increasing (e.g. biofuels & carbon)

9 Common Steps in Roundtable Effectiveness Roundtable & steering groups formed Principles & Criteria developed Technical working groups organized Supporting BMP research conducted Verification systems established Certifying bodies accredited

10 Early Entrants (today a lot more companies involved ) Commodity Places Impacted Partnering Corporations Cotton Sugarcane Palm Oil India, Pakistan, Brazil, China, West Africa Brazil, India, Central America, East Africa, South Africa, Vietnam, Australia, US Indonesia, Malaysia, Honduras, Brazil, PNG WWF, Adidas, GAP, IKEA, H & M, Nike, Wal- Mart, Rabobank, ABN-AMRO WWF, Cadbury, Cargill, Coca-Cola, Tate & Lyle, Ethical Sugar, BP, Shell, British Sugar, ILRF, SAB Miller, IFC, Initially Unilever, WWF, Cadbury-Schweppes, The Body Shop, IFC, now close to 200 ordinary members (7 investors) and close to 70 affiliates Bananas Honduras, Belize, Guatemala Chiquita, Dole, WWF, Favorita, Fyffes, Costco, Croplife, Soy Brazil, Argentina, Paraguay, US, China Unilever, WWF, Bunge, COOP, Cargill, Grupo AMaggi, IFC, HSBC, Rabobank, ABN-Amro, Nutreco, Solidaridad, Nestle Oil (now > 40) Shrimp Belize, Indonesia, Madagascar, Mexico WWF, Ahold, Carrefour, Costco, IKEA, Sysco, ABN-Amro, Marks & Spencers, Wal-Mart,

11 The Biodiversity & Agricultural Commodities Program Why biodiversity? Agricommodity expansion is the preeminent threat with irreversable impact Because there are no easy metrics/standards in biodiversity Focuses on market transformation & biodiversity Palm oil, soy, sugarcane, cocoa Works with/supports existing initiatives such as roundtables 10 year, two phased project funded by GEF, Japan and IFC Implemented by IFC with two contractors: Chemonics (management); EP (M&E) Global program with field operations in key countries Indonesia, Malaysia, Côte d Ivoire, Ghana and Brazil (+ more possible)

12 BACP Impacts & Outcomes A grant making facility which will support technical assistance projects that study, test or implement biodiversity related BMPs in 4 categories: To support production level risk reduction To increase transformed product demand To improve FIs ability to support the adoption of BMPs To improve the enabling environment and the dialogue between RTs and Govts

13 Key Lessons Roundtables provide dialogue space for the supply chain and other relevant stakeholders Sufficient and balanced membership is critical to achieve impact + for credibility Governments tend to delay voluntary processes Governance issue should not prevent action Demand-side traction / leadership key Financial institutions now key partners Standards necessary but not sufficient

14 Remaining Challenges Application by commercial verification Better distribution of certification costs and benefits Defining the role of metastandards roundtables Harmonizing key concepts (e.g. HCVF, CO2) Development of viable small producer schemes Improvement in governance