ProTerra Certification

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1 ProTerra Certification s trends: what is driving sustainable growth

2 Approaches to Sustainability Need for a more Equitable Food System Negative consequences of food production Need to address negative impacts in farming Need to address negative impacts of postharvest supply chain

3 Approaches to Sustainability Need for a more Equitable Food System Consumption patterns that drive production of highimpact foods Meat and dairy products Crop waste Food waste

4 Approaches to Sustainability Need for a more Equitable Food System Inequality, coexistence of excess with insufficiency Environmental damage caused by production Health problems linked to consumption

5 Sustainable Use of Land Source side of economy Capacity of man-made capital to replace natural capital Sink side of economy Capacity of environment to absorb pollution Neumayer, 2011

6 Trends What is driving sustainable growth 1. Reputation and brand image (enhancement of brand image and reputation, sometimes the biggest asset of a company); 2. Investor expectations huge media attention informing consumers about these issues (avoid negative exposure);

7 Trends What is driving sustainable growth 3. Legislative requirements, management of risk and liability, opportunities for environmental efficiencies & cost reduction; 4. Robust manner to defining climate change contribution and strategy ongoing trends of increasing awareness of sustainability issues for sourcing raw materials. Responsible business can be profitable business.

8 Food Industry Trade Assc Distribution Centre Hotel/ Catering Suppliers Food Mfg Co-packer Third Party Logistics Consumer Service Suppliers Retailer Regulation Wholesaler

9 PRINCIPLES CRITERIA CORE INDICATORS INDICATORS PROTERRA STANDARD V3 Social Responsibility and Environmental Sustainability APPLICABILITY LEVEL I AGRICULTURE LEVEL II TRANSPOT AND STORAGE LEVEL III INDUSTRIAL PROCESSING CHAIN OF CUSTODY

10 PROTERRA STANDARD V3 Social Responsibility and Environmental Sustainability PRINCIPLE 1 - Compliance with law, international accords and the ProTerra Standard PRINCIPLE 2 - Human Rights and Responsible personnel policies, labour practices PRINCIPLE 3 - Responsible relations with workers and community PRINCIPLE 4 - Environmental services, effective environmental management plan PRINCIPLE 5 - Genetically Modified Organisms (GMO) not used PRINCIPLE 6 - Pollution and waste managed effectively PRINCIPLE 7 - Water managed conservatively PRINCIPLE 8 - Greenhouse gases and energy managed effectively PRINCIPLE 9 - Good agricultural practices adopted PRINCIPLE 10 - Traceable and segregated Chain of Custody

11 Certification Tiers Overview Farm Audits Warehouse Transshipment Audits Crushing Plant Port Facilities Audits Report review Corrective action plan Certification decision

12 Consumer Retailer Retailer Retailer Retailer Food Mfg Food Mfg Food Mfg Food Mfg Food Mfg Supplier Supplier Supplier Supplier Supplier Supplier Supplier Supplier IP IP IP IP IP IP IP IP IP IP IP F F F F F F F F F F

13 Example of Analytics Agriculture 120% Economic Stability 100% 100% 100% 100% 100% 100% 100% 80% 60% 40% 20% 0% Do you plan your activities to support the long-term economic viability of your farm? 0% Is the more tha one source of income in the farm? Have you considered the risks and is this an informed choice? 0% Do you have a business plan to optimize the longterm economic viability of the farm? Do you keep recordsjobs are offered first of yiled, cost, gross to qualified people income and of the local profitability of the community? farm? Land is adequate to use for the grown crops? Do you maintain your equipment and machinery to ensure their proper, efficient functioning? Grades Average Producer Average Group

14 Example of Analytics Agriculture Brazil Forestry Core - Area Cultivation area in HA legal reservation area in HA legal reservation area in HA pending restoration permanent preservation area in HA permanent preservation area in HA pending restoration

15 Example of Analytics Agriculture Technical Management - Cultivation, Soil and Fertilizers Do you avoid the cultivation and use of invasive species? % Do you keep records of fertilizer applications? 80.00% Do you choose organic and inorganic fertilizer type, quantity and application method to increase nutrient efficiency and reduce negative environmental and social impacts? Do you avoid soil compaction by farm machines or livestock? To improve the productivity of your soil, do you take measures to conserve and improve soil health? 60.00% 40.00% 20.00% 0.00% Do you take measures to avoid soil erosion? If planting genetically modified varieties, do you comply with all regulations of the country where they are grown and buyer requirements where they exist? Do you keep records of planting and/or grafting material used? Do you take into account the optimum plant spacing for your local situation? Do you perform periodic soil sampling to monitor the changes in soil condition and keep the sampling records? Grades Average Producer Average Group

16 SOY MILK, YOGURT, DESSERT SOY ISOLATED PROTEIN SOYBEAN PRODUCTION Agricultural Sustainability Footprint Sustainability Footprint Sustainability Claim on Consumer Product

17 SEED AGRICULTURE OTHER INPUTS SOYBEANS Example: Soy Industry & Food overview CRUSHED EXTRACTED CRUDE OIL EXTRACTED FLOUR/ MEAL FERMENTED EDIBLE OIL LECITHIN PROTEINS MISSO, TOFU, OTHER FOOD SOY SAUCE SOY MILK BAKERY CONFECTIONERY MEAT PRODUCTS

18 THANK YOU! STICHTING PROTERRA FOUNDATION Jan Steenlaan 5A, Bilthoven 3723 BS, The Netherlands Phone Kamer van Koophandel No: