CSR at farm level Fruit Juice CSR Platform Webinar March 27, 2014
Welcome! Webinar on CSR approaches at farm level Focus on practices, guidelines and tools applicable to the fruit juice sector Goal to inspire, initiate and stimulate sector collaboration Let s make it as interactive as possible please be prepared to contribute to the discussion Expected outcomes: Sharing of knowledge on farm level CSR activities Input for concrete outcomes platform activities
Instructions Facilitator will mute all against background noise For comments during presentation: press hand symbol, then we will unmute you Questions can also be asked via the comment box, and will be addressed at the end of each topic.
Agenda 1. Welcome, update on platform activities 2. Existing farm level mechanisms Challenges identified at farm level Overview of current approaches sector SAI Platform: farmer self assessment Presentation Rural Horizons - Solidaridad Discussion and Q&A 3. Platform outcomes & next steps Discussion on next steps for platform outcomes
Who Participants to this Webinar
Update on Platform activities Last webinar: Discussed corporate level tools, guidelines and activities; focused on supply chain Slides: www.juicecsr.eu under Events After the webinar: Formed working group on solution strategies; first call completed early March FrieslandCampina kicked-off project with Solidaridad and others on farmer tool: focused on Citrus/Brazil
Challenges at / related to farm level Your answers: what challenges do you face at farm level? Complexity of the supply chain & influence Difficult to influence and engage farmer (many small farmers and/or farmers that grow specifically for fresh market) Dependence on 3rd parties (because of no farm level presence) Limited insight in farm-level CSR issues Collecting (quality) data Sustainability questionnaires Evaluating and understanding impacts: social, environmental and economic Specific CSR challenges How to address gender / women in agriculture Agro-chemical use Sustainable sourcing: how to achieve this? Security of supply/resilience
Farm level mechanisms What is already being done by the sector (outcome of questionnaire): Assessment: Self-assessment tools / Farmer Self Assessment On-line Survey Farmer assessment by technical staff GHG quantification tools Codes, standards and assurance: Company code (i.e. Unilever Sustainable Agriculture Code) Third party standards & certification including Rainforest Alliance, Fairtrade, RSPO
Farmer self assessment Connectivity for sustainable supply CSR Fruit Platform, 2014
SAI Platform Members AFFILIATE MEMBERS
Principles and Practices 11
Implementation of Principles and Practices How do the Principles and Practices get implemented when members have very broad, global sourcing operations? Operationalize Content Measure Outcomes Farmer Self-Assessment Sustainability Performance Assessment Farm level implementation 12
Why was this initiative started? Main instruments: certification and buyer-specific systems 13 AFFILIATE MEMBERS 13
The end game? Main instruments: certification and industry-wide checklist 14 Benchmarked AFFILIATE MEMBERS Farmer selfassessment
The ultimate open source communication standard Simple Shared Sound Supportive 15
Benefits of Farmer Self Assessment 16
Testing of Farmer Self Assessment 1.0 17
The World s First Practitioner s Guide on Sustainable Sourcing of Raw Agricultural Material
Almost everything available on saiplatform.org 19
RURAL HORIZONS AN EXPERT SYSTEM TO SUPPORT CONTINUAL IMPROVEMENT OF FARMERS Fruit Juice CSR Platform Webinar "Assessment and Assurance at farm level 27/03/2014
AGENDA WHAT IS IT ABOUT? WHY AND HOW A PRIVATE COMPANY WOULD WORK AT FARM LEVEL? Case in the sugar cane sector: Shell / Raízen BENEFITS TO COMPANIES?
WHAT IS IT ABOUT?
RURAL HORIZONS IS AN EXPERT SYSTEM TO SUPPORT CONTINUAL IMPROVEMENT OF AGRICULTURAL PRODUCTION 24
RURAL HORIZONS IS MADE FOR FARMERS FOR THEIR ASSOCIATIONS FOR BUYING COMPANIES 25
IT PROVIDES FARMERS WITH TOOLS TO IMPROVE THEIR PRACTICES STEP BY STEP AND AT THEIR OWN PACE
IT PROVIDES ASSOCIATIONS WITH INFORMATION TO TARGET TECHNICAL ASSISTANCE AND FIND SUPPORT
IT PROVIDES BUYING COMPANIES WITH DETAILED DATA TO ASSESS RISKS AND SUPPORT A STEP-BY-STEP APPROACH TOWARDS HIGH QUALITY SUPPLY
IT IS AN INTEGRATED PLATFORM TO STRUCTURE THE PROCESS OF CONTINUAL IMPROVEMENT UNDERSTAND CHALLENGES IDENTIFY PATH PLAN ADJUSTMENTS ACCESS SUPPORT MATERIAL MONITOR PROGRESS PREPARE FOR CERTIFICATION
BASED ON CONTINUAL IMPROVEMENT LEVEL 4 EXCELLENCE Best cases LEVEL 3 INTERNATIONAL STANDARD Utz, Rainforest, Fair Trade, etc LEVEL 1 LEVEL 2 REGULAR Opportunities for improvement UNSATISFACTORY Urgent changes needed
ADAPTABLE TO DIFFERENT CROPS, REGIONS AND LANGUAGES Version for smallholders - BRAZIL Applied to 378 farmers (9000 hectares) - Paraná - BR Version for mid-size farmers - BRAZIL Applied to 373 farmers (86000 ha) São Paulo - BR Version for smallholders - BRAZIL Applied to 37 farmers (475 hectares) Minas Gerais - BR Version for smallholders - BRAZIL Applied to 76 farmers (62.000 há) Bahia - BR UNDER DEVELOPMENT PALM - BRAZIL SOY BRAZIL / PARAGUAY COCOA BRAZIL / GHANA
THEY ARE USING RURAL HORIZONS
WHY AND HOW A PRIVATE COMPANY WOULD WORK AT FARM LEVEL?
RAIZEN CASE Lubricants E&P Downstream Fuels Bases Service stations Airports Upstream Ethanol Sugar Bioenergy
INVESTING IN BIOFUELS REQUIRES CONTROL AND MITIGATION OF REPUTATION RISKS 35
RAÍZEN JOINT VENTURE AGREEMENT INCLUDES A SET OF SUSTAINABILITY CLAUSES
GUARANTEE SUSTAINABILITY OF SUGAR CANE THROUGH CERTIFICATION 37
CERTIFY OWN OPERATION AS WELL AS SUPPLIERS BASE 38
A TWOFOLD CHALLENGE IN A CONTEXT OF INCREASED COMPETITION FOR SUPPLIERS GUARANTEE SUPPLY OF HIGH QUALITY SUGARCANE CONTROL REPUTATION RISK SELECT BEST SUPPLIERS? Supply breakdown STRATEGY? IMPOSE ON CERTFICATION? Risk of losing suppliers PAY STIFF PREMIUMS? Cost ineffective
GUARANTEE SUPPLY WHILE INCREASING SUPPLIERS SUSTAINABILITY LEVEL REQUIRES A DIFFERENT WAY TO DEAL WITH SUSTAINABILITY
RURAL HORIZONS - SUPPORT A STEPWISE CONTINUAL IMPROVEMENT OF SUPPLIERS BY TARGETED SUPPORT - CREATE LOYALTY BY OFFERING CONCRETE SOLUTIONS AND INCENTIVES TO THE SUPPLIERS 41
INTERVENTION STRATEGY FARMERS ASSOCIATION FARMERS DEVELOPMENT & TESTING Develop expert system and methodology Review recommendations Provide technical expertise on development and testing Complete test version ENGAGEMENT Manage and monitor process Invite suppliers Engage members Decide to participate or not APPLICATION Provide assistance to farmers when needed Coordinate implementation Provide assistance to its members if needed Complete selfassessment guide DATA PROCESSING & FEEDBACK Manage database and guarantee confidentiality of farmers data Access consolidated results (Group benchmark) Access consolidated results (Group benchmark) Receive individual roadmap PLANNING Provide management tool (action plan) Design support strategy Design collective support action plan Build individual workplan ADJUSTMENTS Manage and monitor process Develop incentives and provide support Articulate support from other actors Design own action plan
BENEFITS TO COMPANIES
RURAL HORIZONS COST EFFECTIVE SOLUTIONS TO IDENTIFY ISSUES AND ASSESS SUPPLY CHAIN RISKS
RURAL HORIZONS A QUALITY ASSURANCE FRAMEWORK TO MITIGATE RISKS AND INCREASE EFFICIENCY OF PRIMARY PRODUCTION
AN ENGAGEMENT FRAMEWORK TO BUILD LOYALTY RURAL HORIZONS
RURAL HORIZONS COMMUNICATION CONTENT TO ADD VALUE TO BRAND
WHY IS RURAL HORIZONS AN EFFICIENT STRATEGY AT FARM LEVEL?
RURAL HORIZONS IS ABOUT INCLUSION PRODUCER FRIENDLY OPEN TO ALL FARMERS BOTTOM UP APPROACH
RURAL HORIZONS IS ABOUT ENGAGEMENT DEVELOPED WITH ASSOCIATIONS INDIVIDUAL DATA ARE CONFIDENTIAL SHARE AGGREGATED DATA TO ENGAGE PARTNERS
RURAL HORIZONS IS ABOUT CONTINUAL IMPROVEMENT EDUCATIVE PROCESS MULTIBENCHMARK RACE TO THE TOP
VIOLAINE LAURENS VIOLAINE.LAURENS@SOLIDARIDADNETWORK.ORG ANNELOT VAN LEEUWEN ANNELOT.VANLEEUWEN@SOLIDARIDADNETWORK.ORG solidaridadnetwork.org /solidaridadnetwork @solidaridadnetw /company/solidaridad
INTERVENTION STRATEGY - PILOT CITRUS INDUSTRY FARMERS ASSOCIATION FARMERS DEVELOPMENT & TESTING Develop expert system and methodology Review recommendations Provide technical expertise on development and testing Complete test version ENGAGEMENT Manage and monitor process Invite suppliers Engage members Decide to participate or not APPLICATION Provide assistance to farmers when needed Coordinate implementation Provide assistance to its members if needed Complete selfassessment guide DATA PROCESSING & FEEDBACK Manage database and guarantee confidentiality of farmers data Access consolidated results (Group benchmark) Access consolidated results (Group benchmark) Receive individual roadmap PLANNING Provide management tool (action plan) Design support strategy Design collective support action plan Build individual workplan ADJUSTMENTS Manage and monitor process Develop incentives and provide support Articulate support from other actors Design own action plan
Objective Pilot: Development and Pilot of Rural Horizon by and for citrus farmers Inclusion of SAI Farmer Self Assessment as reference Confidentiality guaranteed by independent data manager (Solidaridad) Start Q2 2014, finalization Q1 2015 Current (contributing) partners: FrieslandCampina, Solidaridad, SAI Platform, AIJN Costs 50k : shared between contributing partners and potential partners AIJN and others Objective Implementation: Joint Capacity Building programmes to improve sustainability issues identified at farm level Will you join us?
What you ll get Cost-effective tool that enables farmers to work towards more sustainable farming and possible future certification Bottom-up therefore relevant for and supported by farmers Pro-active industry wide approach to ensure long term sustainable supply generate maximum impact Harmonization Frontrunner in sustainability SAI Farmer Self Assessment inside as reference Developed under umbrella of AIJN Fruit Juice CSR Platform What you ll give Commitment from you and your suppliers Funding for pilot (and/or implementation) Limited time to coordinate (Solidaridad will execute the project)
FOR MORE INFO VISIT HTTP://EN.RURALHORIZON.ORG/
Q&A What questions do you have? To the presenters? To your peers? To consortium members?
Time for a break! Please be back in 5 minutes To engage in a discussion about platform next steps
Your needs & expectations What would you like to gain from sector collaboration on farm level? Harmonization: Simple, effective, harmonized approaches to collecting data from farms to help identify opportunities for improvements Simple, commonly agreed approach that can demonstrate direct benefit to farmer Harmonized approaches Sharing and collaboration: Shared best practices Pre-competitive collaboration; sustainable partnership Transparency Ideas & input: Ideas for future strategy on farm level Platform input on Social LCA
How can we work together on this? Outcome first working group: first outcome should be joint principles on CSR Goal would be set of overarching principles (based on existing where possible) First step: inventory of existing principles and guidelines per supply chain phase Growers - farmers & smallholders Fruit processors - processors for juice / beverage industry Suppliers & intermediaries - inc. ingredients & flavours, blenders, traders etc. Packers & fillers (inc. packaging materials, machinery etc.) and brand owners Retailers and other channel operators Timeline: present list of overarching principles at next Seminar in October Needed: sector stakeholders willing to help with developing the inventory
Questions to the participants 1. Do you agree that the formulation of joint principles would be a good first outcome of the platform? Answer: 100% of the participants voted yes. 2. Would you like to be engaged in the working groups to determine which guidelines are relevant for your phase of the supply chain? Answer: 72% of the participants voted yes. 3. Which farm level guidelines are you currently working with? Answer: SAI / ETI Base Code / GLOBALGAP 4. Which other guidelines should we look at (non-farm level)? -
Thank you Next steps: - Recorded webinar will be available on Fruit Juice CSR Website; presentation will be shared with participants - Volunteers for working groups will be contacted - Contact AIJN for questions around membership: hello@juicecsr.eu - For feedback & follow up discussion: CSRplatform@utzcertified.org
Appendices: Additional Information
Membership benefits FREE Access to the website Access to best practice case studies Interaction with experts Access to the newsletter Update on activities Invitation to Platform events Final communication material Participation fee Featured best practice case(s) Nomination of expert in Platform s expert network Use of company logo in Platform communication Presentation opportunities in Platform events Role in steering the activities and deliverables of the Platform Members:
Schedule of platform events Date Title Location May 2014 Juice Supplier CSR training, May 13th Murcia, Spain (tbc) Juice Supplier CSR training, May 28th Warsaw, Poland (tbc) Best Practice Exchange workshop June 2014 Best Practice Exchange workshop Spain Krakau, Poland August 2014 Presentation of the Fruit Juice CSR Platform Istanbul October 2014 Fruit Juice CSR Platform Seminar #2 Brussels