How technology should revolution the audit business model and help to feed the world

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1 How technology should revolution the audit business model and help to feed the world Vincent Doumeizel Vice President Food & Sustainability November 2016 Improving performance, reducing risk

2 Challenge : Feed the world of tomorrow with safe & sustainable food Improving performance, reducing risk

3 REWORK The food supply chain is changing: Bigger, more complex, global and with higher consumer expectations Pesticides Fertilisers Animal feed Packaging Chemical processing Breeding Fishing Farming Growing Utilities Slaughtering / deboning Machines Services Chemical products Meat Fish Dairy Fruit/ vegetables/ grains Transport/ Storage Chemical products Fresh/ Frozen meat Fresh/ Frozen fish Short/long shelf life dairy Fresh/froz en fruit/ vegetables Processed food Distribution/sales/consuming Improving performance, reducing risk

4 What do consumers expect Improving performance, reducing risk

5 Risks for the food supply chain 1/6 Population growth

6 Unbalanced food demand accross the word More people live inside this circle than outside of it Source:

7 Risks for the food supply chain 2/6 Food fraud

8 Risks for the food supply chain 3/6 Global food system

9 Risks for the food supply chain 4/6 Biodiversity & climate change

10 Risks for the food supply chain 5/6 Emerging pathogens & epigenomics

11 Risks for the food supply chain 6/6 Social media impacts

12 Primary production is changing and for the better Resilience Farmer records Online payments Digitalisation in emerging economies Scale Waste Access to loans & insurance Better communication Improved logistics Farmer feedback Online training and consulting Market incentives

13 Primary production is changing and for the better Farming methods Vertical farming aquaponics Drones Food products Seaweeds Insects «Animal free» meat Future developments Personalised nutrition Sequencing human genome 3D printing at home

14 Online retail is changing and for the beter Growth of online shopping driven by digital natives Willingness to use digital retail in Asia, Africa/Middle East and Latin America Brands to allow consumers to buy direct You only have stores because there was no Internet, but that does not mean there is a right to have a store. Oliver Samwer, Internet Entrepreneur

15 How new audits business models could improve Food Supply Chain resilience Improving performance, reducing risk

16 Foundation project example : Plants from the sea as a source of food, energy & fresh water - Pilot for intensive seaweed production in offshore wind farm areas - Competition for maritime space + logistic & safety issues - Bridge the protein gap to feed the world - Sustainable source of protein / energy / fresh water - Need to build a system for safety management

17 Connectivity is key Resilience Farmer records Online payments Digitalisation in emerging economies Scale Waste Access to loans & insurance Better communication Improved logistics Farmer feedback Online training and consulting Market incentives

18 Food assurance services will have to change too!

19 New partnership with tech. platform to make it happen url:

20 Today s audit management for food brands outdated Global Supply Network Audits Limited visibility

21 Improve communication and exchanges amongst all food stakeholders Global Supply Network Audits

22 Online assessment: THE solution for better traceability 1. Enable global traceability and transparency 2. Online assessments to 1000 s of clients within a short period of time 3. Assess suppliers out of reach through traditional audits 4. Overcome lack of auditors & geographic limitations 5. Global management of the food supply chain 6. Reduced audits costs for the clients Improving performance, reducing risk

23 Avoiding food disease: Real time monitoring Including : Auto-notification Sensor-based technologies RFID & GPS tracking UAV & on site webcams Predictive analytics Big data Improving performance, reducing risk

24 Resilience could be the convergence of two powerful forces Disruptive technology Changing consumer requirements Improving performance, reducing risk

25 Vincent Doumeizel Vice President Food, Beverage & Sustainability Lloyd s Register Group T +33 (0) E : vincent.doumeizel@lr.org Twitter 71 Fenchurch Street, London, EC3M 4BS, UK Improving performance, reducing risk Lloyd s Register and variants of it are trading names of Lloyd s Register Group Limited, its subsidiaries and affiliates. Copyright Lloyd s Register Quality Assurance Limited A member of the Lloyd s Register group.