Cashew Sustainability Initiative. Embedding sustainability in the core business of companies, lessons learnt and way forward

Transcription

1 Cashew Sustainability Initiative Embedding sustainability in the core business of companies, lessons learnt and way forward

2 Set up workshop Welcome & brief introduction IDH Lessons learnt from the pilot Private sector business case Way forward IDH ACA Closure

3 Mainstreaming Sustainable Trade for development impact Public private partnership facility Funded by Dutch, Swiss and Danish ODA Impact on MDGs1,7 and 8 and PSD 18 commodity chains in 50 countries 300 companies 30 international NGOs 130 million Euro investment capital

4 IDH Value Proposition IDH builds action oriented public private coalitions...to accelerate commodity market transformation......and boost local private sector development to deliver impact on the MDG 1, 7 and 8 IDH roles: pioneering innovative approaches, convener neutral facilitator, program developer, investing - leveraging public goods component, replicating lessons learnt from other sectors

5 Cashew Sustainability Initiative Central level: MIS developed: facilitating data exchange on sustainability, quality and quantity indicators Validating sustainability workstream In-country level: Organize the catchment area Create sustainable strategic linkages between farmer (aggregation) and processor Increase quality & quantity of cashew reaching end-market Projects in Burkina Faso, Côte d Ivoire, Ghana, Kenya, Mozambique (under ACi umbrella)

6 Lessons learnt from the pilot First results: Total number of farmers 19,563 Total number of farmer aggregations Percentage who sold RCN directly to processor % Total volume of RCN 9,703 MT Some observations: Sharing helps! Training focussed, loyalty increased. Joint implementation: FMS with company works meets business reality. Cooperation & trust positive 2 nd phase, roadmap Link with sourcing practices can improve Challenge: PO become financial and economic sustainable businesses, creating efficiencies in the chain. Changing role and mentality of the agents / farmers / buyers / companies Better quality and efficiency is not clearly rewarded yet.

7 Abishek Mishra /Konate Issa Wim Schipper Kees Blokland PRIVATE PARTNERS SPEAKING

8 Interview questions?

9 SUSTAINABILITY DIRECTION & NEXT STEPS IDH & ACA

10 What is a modular sector reference code Sector reference code Sector wide sustainability definition Content needs to be tested with and supported by key stakeholders A pre-competitive tool to reference and benchmark other initiatives and instruments (not a production standard) Modular design and set up A modular element added to include different levels both on the verification end (level of verification) as well as compliance in terms of criteria which are met Allow for recognition of other initiatives and existing/emerging standards Continuant improvement should be stimulated (no race to the bottom, but inclusive approach)

11 Towards a mutual sustainability agenda Involve key sector stakeholders Who are the key stakeholders? What are their needs? Look beyond current IDH partners Ensure sector-wide buyin and inclusivity Establish independence from governments,vss, etc. Define sustainability What does sustainable cashew mean? Focus on economically viable businesses and social criteria (productivity, efficiency, working conditions, good business) rather than environmental and criteria traditionally covered by VSS Verifying sustainability How can this be measured? What should be the minimum criteria fulfilled? What should be the entry level of compliance? Which verification method is most suited? How to ensure MIS being a key component and at the same time ensure alignment with existing and upcoming verification systems? next steps

12 Next steps 1. Consult key stakeholders on their needs What function does the information (and indicators) in the MIS have? (i.e. capacity building, comparison, assurance, claims) Are the right incentives in place for partners to cooperate and share valuable information? 2. Create a modular definition of sustainability and a set of indicators Are there additional indicators to the ones currently used? Are they supported by a broader group of stakeholders? Some information can only be collected and verified by specific parties (productivity by processors, environmental performance by external auditors/standard bodies). How do we accommodate for this? Which indicators are mandatory? 3. Define the verification needs and functions for each module How do we want to verify the indicators? Do we want to work towards incorporating assurance and claims? To whom is this information of value? Who pays the costs? 4. Develop a business case to link it all together (what are the incentives to do this) In the future? Create a benchmarking procedure to compare other standards and initiatives to the reference code process to answer these questions and develop a modular sector reference code & verification policy will take 3-6 months. Work plan to be developed in September-October

13 ACA Seal : Social Responsibility Social Responsibility Compliance Establishing Social Responsibility Compliance Criteria(based on ETI and ILO codes).complince Criteria includes : - No Child / Prison Labour - Fair Wages - Working Conditions - No Discrimination, No Harrasment, No Abuse - Working Periods - Freedom of Association Capacity Building for Compliance to Social Responsibility Criteria - On site training and Inspection on Compliance Criteria. Quantitative Evaluation of Compliance Criteria with current - All Seal approved processors must score > 85%

14 ACA Seal : Social Responsibility Next Steps 1 Benchmarking of SEAL Social responsibility with existing social responsibility code 2 Collaborating with IDH on development of Sector code and assesment system 3 Developing an evaluation System for Sector Code Inclusion of Evaluation system in SEAL assessment

15 DISCUSSION

16 Thank you for your attention! bletrade.com/cashew