July 2016 www.ethicalcorp.com

No green medalsFor the Olympics

Business steps upTo the SDGs

This changes everythingPondering Britain post-Brexit

Eyes in the skiesHow big data is transforming sustainability

17The revolution will be circularHow connected devices fuel the circular economy

3

Ethical Corporation | August 2014???Contents

38 BrandWatch PepsiCo under fire

40 NGOWatch Worst year for land defender killings

42 Cheat sheet All you need to know

Reporting the SDGs

46 Making the global goals A force for good for business

53 ‘It’s not too complex’ Interview with Malcolm Preston

Comment and analysis

56 Battling Brexit Disaster is not inevitable

59 Report review: Lego

61 Report review: M&S

63 Academic news

65 People on the move

67 On the web

5 From the editor

EthicsWatch

6 No green medals for Rio Plans for sustainable favelas founders

9 Business key partners In climate battle

12 Fighting food loss Launch of a global standard

15 PolicyWatch EU nations sign air pollution pact

Big data briefing

17 How connected devices Are fuelling the digital economy

23 CSR reporting shifts From box-ticking to real-time data

28 Blowing the cover On deforestation

33 How drones and robots Are revolutionising agriculture

Ethical Corporation | July 2016

46Business gets to gripsWith the SDGs

33

Big data and agribusiness

The germination of precision farming By Ellen R DelisioTechnologies such as drones and robots have the potential to revolutionise agriculture, allowing farmers to use resources more efficiently

Precision is coming to agriculture, brought by drones, satellites, data and GPS-guided machinery, taking some of the grind and uncertainty out of an

industry that has changed little since seeds were first pushed into the ground by hand and doused with water.

“The big news is the technology movement,” says Ulrich Adam, secre-tary general of the European Agricultural Machinery Industry Association. “The technology allows greater precision and greater outcomes for everyone. Farmers are very open to this technology; they like anything that has demon-strable benefits.”

This new use of technology provides farmers with real-time information that allows them to respond to potential problem areas in their fields. “They are using fewer resources, such as fuel, pesticides and water,” Adam says. “There are benefits for the farmer, such as easier working conditions. Farmers are able to produce more; the yield is greater.”

According to some estimates, agriculture is responsible for one-third of global warming emissions, so increased efficiency is critical. Farmers are also

Ethical Corporation | August 2014??? Ethical Corporation | July 2016

VALIO84SL

Increasing the efficiency of agriculture is critical to fighting climate change

Big data briefing

34

Ethical Corporation | August 2014???

being increasingly affected by climate change, having to react to changing weather patterns and increased drought.

Advice, not just data“Precision agriculture is enabling a more sustainable agriculture industry by allowing growers to significantly scale back fertiliser applications,” says Farmers Edge, a precision agriculture company in Manitoba, Canada. The company works with farmers in five countries, providing whole-farm data and management tools and using variable rate technology (VRT) to help farmers adjust their application of fertil-iser in different locations.

According to AgFunder, an online investing platform, companies in the sector attracted $4.6bn in investment last year, double the figure in 2014. This includes third-party consultants, which can save farmers from investing in expensive equipment or navigating complex regulations regarding drone use.

Significantly, the sector is also attracting big players such as US agricul-tural company Monsanto, whose business model has been based on selling agricultural chemicals and fertilisers, which has invested heavily in several companies that offer weather analytics and crop and soil technology data to farmers.

The quantity, quality and applications of data is shifting the way all farms operate, according to Vonnie Estes, a San Francisco-based agricultural tech-nology consultant. She writes in a recent blog: “On the production side, this is changing the value chain in big agriculture as access to big data is trans-ferring power to the farmer and smaller companies, while the big companies consolidate and struggle to innovate.”

Despite a decrease in commodity prices and farm incomes, more US farmers are investing in the new technologies. Minnesota-based industry research firm Caledonian Solutions says a recent market study of 300 Midwest farmers found that they plan to double their uptake of new technologies between 2013 and 2019.

The expansion of technology use in agriculture has spurred the growth of companies that not only collect data, but immediately analyse it for farmers so they can make adjustments during the current growing season. One of these

Ethical Corporation | July 2016

‘Precision agriculture will allow growers to slash fertiliser applications’

MAR

CCOP

HOTO

In the US farmers have to battle drought

Big data briefing

35

is Aker in Minnesota, which has been in business since 2014 and uses drones to survey fields and produce high-resolution, aerial imagery, which is then analysed to identify problem areas.

“In-season evidence has been missing [from agricultural data]”, says Orlando Saez, founder and CEO of Aker. “The whole industry relies greatly on data, but most decisions are based on models from last year. Typical farmers have to deal with hundreds of thousands of variables a year and then act on a gamble.”

Aphids, for example, are a menace to soybeans, a big money crop in the US Midwest. Rather than making predictions about a possible influx of insects based on the previous year’s records, input from drones allows farmers to see if aphids are in the area and observe their migration paths, according to Saez. Management zones can be created and any problems treated, he adds.

Prototypes of “search and destroy” drones are in the works; these drones pinpoint areas of crop disease or insect presence and treat just the infected areas. These targeted responses would cost less and be better for the envi-ronment than widespread spraying, says Saez. The drones could be in fields by 2018. Saez adds: “Technology has already transformed the industry and it is going to transform it even further.”

EuropeIn Europe, the European Union is encouraging farmers to take up satellite tech-nology, in part because it has the potential to reduce the cost of administering

Ethical Corporation | August 2014??? Ethical Corporation | July 2016

The sector has attracted big agricultural players such as Monsanto

DLG-

FELD

TAGE

Drones are a popular new tool

Big data briefing

36

the EU’s Common Agricultural Policy of agricultural subsidies, according to the EU’s commissioner for agriculture and rural development, Phil Hogan.

Crops such as wheat and canola (rapeseed) lend themselves well to the use of equipment that detects the degree of nitrogen in the crop, says Klaus Erdle, head of the International DLG Crop Production Centre in Germany.

Apply where neededIn Europe, fertiliser is conventionally delivered in fixed amounts at regular inter-vals. “With the sensor technique, the application can be directly oriented to the actual demand of the crop,” Erdle explains. The same approach is being developed for pesticides and weed killers. “In terms of precisely applying crop protection, there are new technol-ogies coming up. We are currently awaiting cost-effective methods that are able to apply crop protec-tion agents more precisely and spatially where needed. In vege-table production, there is still a need for better models to optimise fertilizer management.”

The global precision farming market represented about €2.3bn in 2014, according to European researchers. Some analysts expect the market to increase at a yearly rate of 12% to 2020.

Drones are one of the most popular new tools. The unmanned devices are perfect for cruising above acres of farmland and sending photos and data to farmers to alert them to problems or areas that need special attention. Farmers no longer have to spend hours walking their fields, Adam says. Machinery such as tractors and spreaders can be programmed for certain tasks based on drone data.

Global Satellite Navigation Systems (GNSS) including GPS are appealing to both small- and large-scale farmers, with 65% of arable farmers in the Neth-erlands using GNSS, Adams says.

GPS receivers are employed for mapping field boundaries, roads and irri-gation systems, and pinpointing crop sections affected by weeds or disease, while farmers use GPS systems on tractors to ensure they drive in the most

Ethical Corporation | August 2014??? Ethical Corporation | July 2016

Targeted responses cost less and are less harmful than widespread spraying

DLG-

FELD

TAGE

Robot prototypes can recognise weeds

Big data briefing

37

Ethical Corporation | August 2014???

efficient way possible, using less fuel and applying less fertiliser, says Boot.

Cutting collective costsMany EU and national organisations have been working with farmers and holding demonstration events to intro-duce technology and facilitate its use. About 22,000 people attended the 2016 German Agricultural Society meeting last month to observe new devices in action, Erdle says.

Demonstrations by field robot proto-types were popular. About 16 academic field robot teams from seven countries competed in a visual demonstration including following curved crop rows and weed recognition. The prototypes were built by students from European universities. “These are robots that can recognise weeds and are sometimes capable of mechanical weed removal,” says Erdle. “Some are powered by solar panels, others with batteries.”

But while the new technologies hold great potential, take-up has not been as rapid as the EU had hoped. The biggest challenge farmers face at present is choice, according to Erdle. “Machinery is a significant investment; with so much precision farming machinery available, choosing the best product for the soil, weather and crop can be a daunting task. At the same time, the compati-bility of different systems is not always automatic.”

During a focus group last year to determine why more farmers are not embracing technology, the European Innovation Partnership for Agricultural Productivity and Sustainability learned that farmers lacked information on the benefits and how data would be safeguarded. “The challenges are not technical — there are still some technical gaps in local applications, but in theory everything is there,” explains Iman Boot, senior expert, research and innovation, with the European Commission’s Directorate General Agriculture and Rural Development. “The challenges have more to do with the organisa-tion of data and more social issues. Farmers have concerns that others will access their data. We have to find solutions there before precision farming really takes off.” n

Ethical Corporation | July 2016

Take-up has not been as rapid as the EU had hoped

Robots show the potential for new technologies

DLG-

FELD

TAGE

Big data briefing

What some of our subscribers have to say

“Excellent informed briefings across a broad range of subject matter areas.”

Sean Axon, Group Sustainability Direct at Johnson Matthey

“Great service; a source of clear thinking and brilliant links to what is going on.”

Ian Roderick, Director, Schumacher Institute

“Ethical Corporation is a valuable and comprehensive resource on the global state of affairs in corporate responsibility”

Dave Stangis, Vice President, Corporate Social Responsibility, Campbell Soup Company

“Ethical Corporation brings together the no-nonsense critical approach to sustainability with business savvy information”

Ramon Arratia, Sustainability Director, EMEA, InterfaceFLOR

“The essential source of critical analysis on corporate responsibility”

Richard Ellis, Group Head of CSR, Alliance Boots

“Ethical Corporation bring together the best in business to make a difference”

Jeff Swartz, Former CEO, Timberland

“Ethical Corporation magazine is one of the most valuable resources of business information on sustainability”

Joaquim Croca, Global Head Enterprise Sales & Commercial Operations, Vodafone Group

“It is a good way to benchmark with other companies and industries. It is also an excellent way of leveraging best practice.”

David Howson, Former Global Sustainability Direct at Bacardi Ltd.

“As one of the foremost thought leaders engaging key stakeholders around the globe on sustainability issues – supply chain, operations, innovation, communications, engagement – it is well positioned to provide valuable input and guidance to the business and stakeholder community at large on the issues, questions and challenges material to this domain.”

Christine Diamente, Head of Brand and Corporate Sustainability, Alcatel-Lucent

The services we provide to help you in your roleEthical Corporation subscriptions are designed to help individuals and teams truly understand the evolving landscape of sustainability and responsible business. By providing a wide range of research, data, analysis, case studies, reports, events and online resources, Ethical Corporation will help you and your organisation build a sustainable and successful business strategy.

An industry-leading resource at your fingertips Not just a magazine, but a holistic sustainability intelligence resource. Ethical Corporation resources will provide a huge boost to your initiatives. Whether you’re at your desk or on the train, we are there to provide the answers you need.

The EC Player Hear directly from some of the leading figures in responsible business

as they tackle and discuss the key issues, with fully-searchable video and audio recordings of conference sessions.

The Digital Magazine Library All past issues of the Ethical Corporation magazine (dating back to 2001) are available in the Digital Magazine Library. You’ll receive email notifications new editions are published every month, complete with all of the most pertinent and comprehensive analysis.

The Whitepaper Library Gain unlimited access to in-depth reports on conferences, key

sustainability issues, and surveys run to the global Ethical Corp community. Readily-available and open only to subscribers, via mobile or desktop.

EthicalCorp.com An in-depth database of sustainability intelligence – containing premium business intelligence – at your fingertips. More than 9,000 articles, comprehensive briefings, corporate profiles, strategy pieces, and more.

Weekly email updates Subscriber-only emails containing all of the latest insight, reports,

news and offers make sure you remain up-to-date.

Save money on… Expertly-crafted intelligence reports, reaching the responsible business community with EC promotional facilities, passes to industry-leading conferences, and all other EC products.

SUBSCRIPTION TYPE Enterprise Professional Individual

Fully digital magazine

As many users

as required

Up to 3 users 1 user only

Full Ethical Corp.com access Up to 3 users 1 user only

Full access to digital libraries Up to 3 users 1 user only

Weekly subscriber newsletter Up to 3 users 1 user only

Free Business intelligence reports (you choose) 2 per year

Intelligence report discounts 50% 50% 50%

Report promotion on EthicalCorp.com and marketing channels

Featured Featured Basic

Press releases As many as required

Logo on EthicalCorp.com

Conference pass discounts

As many free passes as required 50%* 50%*

Discounts on all other Ethical Corp products 25% 20% 10%

* Off full price ticket

Call our Subscriptions Accounts Manager

on +44 (0) 7375 7235 to have a package tailor made for you

Join now! Click here

£1,495+VAT

Join now! Click here

£695+VAT

Subscribe today!Below are the packages we have constructed which we believe should cater to the needs of any responsible business professional, anywhere in the world.

For NGO, SME, Academic, and other price plans, click here.

LEAR

NING

RES

OURC

ESBR

AND

BUIL

DING

OP

PORT

UNIT

IES

BEST VALUE!

INDU

STRY

PAR

TICI

PATI

ON

& NE

TWOR

KING