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A Framework for Adapting and Improving Sustainability Strategies ISEAL GUIDANCE NOTE
June 2021
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Contents1. Introduction 3 1.1. Scope 3 1.2. Learning Feedback Loop 4
2. Understand Context 5 2.1. Context Analysis 6 2.2. Root cause analysis 7
3. Adapt Your Strategies 9 3.1. ConditionsforValueChainstrategies 9 3.2. ConditionsforSystemicstrategies 11 3.3. Choosingtherightstrategies 12 3.4. PuttingItAllTogether 13
4. Measure Change 15 4.1. Performancemeasurement 15 4.2. Systemicchangemeasurement 17 4.3. AdaptiveManagement 19
5. Make Credible Improvement Claims 20 5.1. Performanceclaims 20 5.2. ContributionClaims 21 5.3. StrengtheningtheIntegrityoftheClaim 22 5.4. Communicatingchangesinsystemconditions 22
Annex 1. DecisionTree 23
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Thesustainabilitychallengeswecareaboutarecomplexandrequireustoregularlyconsiderhowwellourstrategiesareworkingandhowwecanrespondbettertothevariouscontextsinwhichwework.Mostsustainabilitysystemshaveatheoryofchangeinplaceabouthowtheyintendtodrivesustainabilityimpacts,whichinformstheirchoiceofstrategiesatagloballevel.Thisguidanceaimstocomplementthoseglobaltheoriesofchangebyprovidingaframeworkforsustainabilitysystemstoadapttheirstrategiesataregionalleveltotakeaccountoflocalsystemconditionsanddriveimprovedsustainabilityperformance.
Thispracticalguideappliestoanysustainabilitysystem(sustainabilitystandardorsimilarsystems)thatissupportingimprovedsustainabilitypracticesthroughmarket-basedinterventions.Itappliestoallinterventionsthataimtoimproveenterprisesustainabilityperformance,eitherdirectlyorindirectly.
TheguideisanoverarchingframeworkthatdrawstogetherandreferencesotherISEALlearningabouthowsustainabilitysystemscanbetterincentivise,measure,andcommunicateperformanceimprovement.Itisintendedtohelpsustainabilitysystemstoadaptandimprovetheirstrategiesandactionsinspecificcontexts.InAnnex1,weprovideadecisiontreetoguidesustainabilitysystemsonhowtousethisdocumentasareferenceinthatprocess.
Sustainabilitysystemsandtheirpartnersaimtosolvethemostpressingsustainabilitychallengesofourtime,fromtheclimateemergencyandbiodiversitycrisistohumanrightsandpersistentpoverty.Sustainabilitysystemshavetraditionallyfocusedoncreatingmarket-basedincentivestoencouragebetterenterpriseperformance.However,werecognisethatdurableandscalablesolutionsrequireustoconsidertheenablingconditionsthatdrivechangeinaregionorsector,takingintoaccountthespecificpolitical,culturalandeconomiccontextintheplaceswherewework.
1.Introduction
1.1. SCOPE
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1.2. LEARNING FEEDBACK LOOP
Toreflectthefactthatcomplexsystemsaredynamic,thisguidanceisstructuredaroundalearningfeedbackloop(sections2to5)inwhichsustainabilitysystemscanassesshowwelltheirstrategiesareworkingandwhy,inordertobothadaptandimprovetheeffectivenessofthosestrategiesandtocommunicateabouttheprogressthatisbeingmade.Thisframeworkassumesthatsustainabilitysystemsare
alreadyimplementingarangeofstrategiestobringaboutimprovedsustainabilityoutcomes.Thisismoreaboutrefiningthosestrategiesbasedonwhatwelearnaboutwhat’sworkingornotandwhy.Inapplyingthisframework,sustainabilitysystemscanenteratanypointinthecycledependingonwhatstageofplanning,assessment,orimplementationtheyareat.
Figure 1: An adaptive learning loop approach for improving sustainability strategies
BETTER COTTON INITIATIVE (BCI) - STUDY INDICATES REQUIREMENTS TO ADAPT TO LOCAL CONTEXT IN ORDER TO ACHIEVE TRANSFORMATIVE CHANGE IN ANDHRA PRADESH, INDIA
Between2015and2018,a3yearstudywasconductedontheearlyimpactsoftheBetterCottonInitiative(BCI)onsmallholdercottonproducersinKurnoolDistrict,AndhraPradesh,India.Thestudyhighlightsthattoachievesuccess,allaspectsofthetheoryofchangeneedstobeimplemented,withsufficientintensityandimplementingpartnercapacity.Akeyfindingofthereportisthatamoresystematicapproachisrequiredtoachieve‘BetterCotton’inAndhraPradesh.Besidescertification,othertypesofinterventionsareneededtoachievethetransformativechangedesiredbytheBCIstandard.Thestudyrecommendsthatstrategydesignmustaddresswiderissuesrelatingtocollaborativeruralgovernance,climateresilience,actionsonconsumption,etc.
Source: Evaluation of the early impacts of The Better Cotton Initiative on Smallholder cotton producers in Kurnool district, India.
IMPLEMENT STRATEGIES
IDENTIFY OR ADAPT STRATEGIES
UNDERSTAND OR UPDATE CONTEXTMEASURE
CHANGE
COMMUNICATE Howtogather enough informationtoassesstheextenttowhichyourtheoryofchangeandresultingstrategiesarelikelytosucceed,orwhethertheyneedtobeadapted
Howtounderstandtheeffectivenessofdifferent strategies under different conditions&theirstrategicimplications.
Howtounderstandwhatisneededtomakecredible
claims especially on systemschangeelements.
Howtomeasure performance change and change in enabling
conditions,withtheaimoflearning,adaptingandcommunicating.
©BCI
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Tostrengthenthelikelihoodthatyourtheoryofchangeandthestrategiesyouchoosewillbesuccessfulforaspecificcontext,itisusefultoconductananalysistobetterunderstandthatcontext,thekeydriversofsuccess,andtheindividualsororganisationsthatareinpositionsofinfluence. Thesustainabilityperformanceofindividualenterprisesresultsmostimmediatelyfromtheirawarenessandcapacity
toact(innercircleinfigure3).Theirabilitytoimproveisinformed,inturn,bythestructureandmaturityofthemarketsandbythestrengthoftheinstitutionsthatsupportthemdirectly.Finally,theouterringinfigure3bringstogethertherangeofstakeholdersandsystemsthatinfluencethebroadercontextinwhichanenterpriseoperates,fromconsumerdemandtotheeffectivenessofgovernmentinstitutions.
Whilesustainabilitysystemsmostoftenapplytheirtheoriesofchangeglobally,researchtellsusthatthesemodelsarenotequallyeffectiveatachievingimpacteverywhere.Theeffectivenessofasustainabilitysystem’sstrategiesishighlydependentonthecontextinwhichthosestrategiesareapplied.Whileonestrategymayachievegoodresultsinaparticularplace,thesameapproachmayhavelittleeffectinadifferentcontext.Thisispreciselybecausethecombinationofactorsandactionsneededtodrivechangeisdifferentindifferentplaces.
2. Understand Context
Figure 2: Factors that influence an enterprise’s ability to improve their practices
PRODUCER CONTEXT
ENABLING CONTEXT
INSTITUTIONAL CONTEXT
MARKET CONTEXT
Awareness Capacity
Producer group organization
Infrastructure
Level playing field
Value chain structure
Awareness & demand
Market concentration
Stability
Institutional strength
Policy framework
Institutional strength
Governments
General public
Civic society
Civic space
Awareness
Business case
Key decision makers
influence of public and
private sectors on producers
Supportive policy framework
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Contextanalysisisbestundertakenatascalewhereitispossibletounderstandwhoandwhatarethemajordriversofchange.Contextanalysisischallengingtoconductatagloballevelorevenatanationallevel,giventhediversityofactorsanddrivers.However,forpracticalandfinancialreasons,sustainabilitysystemsarealsounlikelytocarryoutnumerouscontextanalysesatverylocallevels.Theappropriatescalewilldependonhowdiverseorcomplicatedthecontextandhowdeeplyengagedyourinitiativeseekstobeindrivingchangeinthatregion.
Understandingthespecificcontextinwhichyouareoperatingrequiresin-depthinformationaboutthestakeholdersandconditionsthatarelikelytoinfluencesuccess.Acontextanalysisismostusefulifyouareabletogatherenoughinformationtobeabletoanswerthefollowingquestions:
n Whatarethemostimportantsustainabilitychallengesinthisregionandtherootcausesofthosechallenges? (seealsosection2.2)
Organization of the service sector
• Technical assistance
• Input provision• Financing
• Platform for sector dialogue, alignment and coordination
• Shared vision and interest: FQ and SQ
• Joint strategy towards vision
• Alignment of investments, technology packages and farmer support measures
• Monitoring, assurance and learning
Sector alignment & accountability
Public sector governance
• Regulation and governance of market
• Support mechanisms by the government
Organization of the production base
• Effective producer organization for the service market
• Effective producer organization for the product market
Strengthening of demand
• Market alignment and discipline
• Good buying practices • Product traceability
AN OVERVIEW OF THE FIVE BUILDING BLOCKS OF SECTOR TRANSFORMATION
In2015,NewForesightdevelopedamodelofthedynamicsofsectortransformation.Themodeldescribesthefivebuildingdblocksthatinfluencethepotentialforasustainablesectortransformation,alongwiththecharacteristicsorenablingconditionsthatneedtobeinplaceforeachbuildingblock.Themodelisausefulreferenceforevaluatingwhatneedstochangeinaregionforvaluechainstrategiestobeeffective.
Source: Newforesight 2015 ‘Sustainable Sector Transformation’.
2.1. CONTEXT ANALYSIS
n Whatarekeytrendsandopportunitiesforchange?
n Whoarethemostinfluentialstakeholdersthatneedtochangetheiractionsinaddressingthechallenges?
n Whichinitiativesalreadyexistandhowdotheyrelatetoeachotherandtothekeystakeholders?
n Whatarethemaindriversfortheiractualbehavior?Whatconstraintsdotheyhave?Whichincentivesandcapabilitiesexistforthemtochange?
Muchofthisinformationcanbecompiledthroughdeskstudies,documentingexistingknowledgeoflocalstafforpartnerorganisations,orthroughkeyinformantinterviews.Dependingonthetimeframeandresourcesavailable,acontextanalysiscanbeanin-depthformalreviewofexistingevidenceandstudyoftheregionoralessformaldescriptionbasedoninputfromthosefamiliarwiththeregion.
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Existingstudiesandexercisescansupplementinformationgatheredthroughinterviewsandconsultation:
CONTEXT METHODOLOGY DESCRIPTION
GENERAL • Stakeholdermappingandpoweranalysis• Assessmentofexistingsustainabilityinitiatives• Sustainabilitytrendsandopportunities
MARKET • Marketstudies(includingproduction,trade,andpricedynamics)• Valuechainanalysis(includingvaluechaingovernance);
LANDSCAPE • Landusechange,drivers,andvulnerabilityanalyses
PUBLIC SECTOR • Legislativecontext,policyenvironmentandpoliticaleconomyanalyses
FINANCE • Financialsectoranalysis(e.g.onactors,relationships,products,policies)
Rootcauseanalysiscanhelpyoutounderstandcausalrelationshipsforadefinedproblem.Itisusefulforidentifyingtheunderlyingissuesandfactorsthatcontributetotheseproblems,helpingyoutounderstandtheconditionsthatneedtoshift.Rootcauseanalysescanbeconductedaspartofthecontextanalysisorasaseparate,subsequentexercise.Itisimportantgoingintoarootcauseanalysisthatyouhaveacleardefinitionoftheproblemyouareseekingtoanalyseandenoughinformationtoidentifykeydriversthatarecontributingtothesecriticalsustainabilitychallenges.
2.2. ROOT CAUSE ANALYSIS
Foreachidentifieddriver,rootcauseanalysisthenmapsthefactorsthatcontributetothatdriver(contributingfactorsorunderlyingcauses–seefigure4).Italsoidentifiesthekeystakeholdersrelatedtothesefactors.Questionstoaskabouteachcontributingfactorinclude:Whoisinvolvedintheseactivities?Whataretheydoingandwhy?Whatincentivesanddisincentivesinfluencethedirectdriversandunderlyingfactors?Whateconomic,political,institutional,social,orculturalfactorscontributetothispressure?
Table 1: Types of information that can inform context analyses
Figure 3: Example of a simple root cause analysis
Intervention Sustainability challenge
Direct driver
Direct driver
Contributing factor
Contributing factor
Contributing factor
Contributing factor
Contributing factor
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Theintentionofdiggingintotheunderlyingcausesistogainabetterunderstandingofwhatfactorsinaregionalcontextwillneedtochange.Thenatureandcomplexityofthesustainabilitychallengeswillhaveimplicationsforyourchoiceandsequencingofstrategies,e.g.,iftherootcause
analysisshowsarangeofcontributingfactors,itislikelythatafocusonmoresystemicandcollaborativestrategieswillbenecessary.Understandingthesefactorsalongwithunderstandingwhereyouarewell-placedtoeffectchangewillhelpyoutofocusyourchoiceofstrategies.
FSC – USE OF CONTEXT ANALYSIS IN DEVELOPING STRATEGIES FOR AN INCLUSIVE SMALL FOREST OWNER’S DEVELOPMENT MODEL
Inanefforttobemoreinclusiveandaccessibleforsmallholders,FSClaunchedthe‘NewApproachesforSmallholdersandCommunitiesCertification’projectin2016.TheNewApproachesProjectsoughtamethodologythatmeetsthefollowingconditions:canbeusedglobally,takesintoaccountlocalspecificities,isinclusiveandallowsfortheimplementationofasystemicapproach.Withinthisproject,theCollectiveImpactMethodologyappliedcountryandregional-levelcollaborativeantsystemicprocesses.ReadaboutthepilotprojectwhichwasinitiatedinChilein2019whichprovidesdetailedinsightsintohowthecontextanalysiswasstructuredandcarriedoutincludingtheinformationgatheredwhichinformedtheirstrategicdirection.
Source: Lessons learned from piloting the development of an inclusive small forest owners development model© FSC
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3.1. CONDITIONS FOR VALUE CHAIN STRATEGIES
Thissectioncanhelpyoudeterminewhichtypesofstrategiesmaybemosteffectiveforagivencontext.Strategiesfordrivingperformanceimprovementscanfocusoninfluencingtheactionsoftargetenterprisesdirectly(suchascapacitybuildingorcertification)orindirectly(suchasthroughbuildingmarketdemand).Thesearevalue chain strategies.Sustainabilitysystemscanalsoseektoinfluencetheenablingenvironmentinwhichthoseenterprisesoperatethroughsystemic strategies,tocreatethesystemconditionsthatsupporttheenterprisestoimprove.Tounderstandwhethervaluechainorsystemicstrategiesaremorelikelytobesuccessfulinagivencontextorwhetheracombinationofbothisdesirable,sustainabilitysystemswillbenefitfromanalysingtheconditionsforuptakeofthesestrategies.
3. Adapt Your Strategies
llthingsbeingequal,ifacontextanalysisshowsthatconditionsarefavourableforvaluechainstrategiestosucceedindrivingchange,itisaloteasierforsustainabilitysystemstoimplementthesemoredirectstrategies,ratherthanseekingtoinfluencesystemconditions.
Valuechainapproachesarelikelytosucceedwhenthereisafavourableenterprise, market, and institutional context.
n Afavourableenterprisecontextmeansthatparticipatingenterprisesareawareoftheproblems,havecapacitytoaddressthem,andseeabusinesscaseforaction.
n Amarketthatdifferentiatesandrewardssustainability,isfairlyconcentrated,andhasshortandtransparentsupplychainsisfavourable.
n Afavourableinstitutionalcontextisabouthavingalevelplayingfieldforenterprisesandsufficientcommunicationandtransportationinfrastructure,aswellasotherbasicservices.
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PRODUCER CONTEXT
MARKET CONTEXT
INSTITUTIONAL ENVIRONMENT STRATEGIC CONSIDERATIONS
Good context to promote value chain strategies. Focus oncollaborativeonesifsustainabilitychallengesandinvestmentrequirepre-competitiveaction.
Favours value chain strategies.Strongunderminingdynamicsintheinstitutionalcontextmayneedtobeaddressedthroughsystemicstrategies.
Value chain strategies can be pursuedifsupplychainactorshavereach/leverageoverproducers.Itmayneedemphasisonimprovementstandards(e.g.step-wiseapproaches),marketincentives,andcapacitybuilding.Thepublicsectorcanplayaroleinstandard-settingandcapacity building.
Roleofpublicsectorinsupportingproducerswillbelimited,makingtherole of value chain actors more important,aswellasthemarketincentivestheyprovidetoproducers.Collaborativestrategiesmaysupportalevelplayingfieldandco-investmentandrisk-sharing.
Focus on the systemic pathwaytosupportroleofpublicsectortoimproveproducerperformance(e.g.throughmandatorystandards).
Work on producer-centric approaches. Engage with front-runner value chain actorstobuildproofofconceptsofsustainabilityimprovementswhichmayinspirethepublicsectorandothervaluechainactors to act.
Focus on strengthening the governance of the sector,andfeedthiswithproofofconceptsfromproducerandvaluechainbestpracticeprojects.
Lower ambitions to reach scaleandstartbestpracticepilotswithproducers and value chain actors and raise awareness on sustainability issues.
TABLE 2: Strategic considerations in response to enabling or disabling conditions in the producer, market and institutional contextSource: Choosing effective sustainability strategies based on enabling conditions
Enabling(positive) Disabling(negative)
Thefollowingtablesuggestssomestrategicconsiderationsfordifferentcombinationsofpositiveornegativecontexts. Theseshouldhelpyoudeterminewhetherorunderwhatconditionsvaluechainstrategiescouldbepursued.
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3.2. CONDITIONS FOR SYSTEMIC STRATEGIES
Improvedperformancecanresultfromvaluechainstrategiesbutmaybeshort-livediftheenablingsystemconditionsarenotalsoaddressed.Systemicstrategiescanaddressrootcausesofunsustainablepractices(capacities,policies,institutions,stakeholderrelationships,etc.)andhaveeffectsthatgobeyondcertifiedareasofoperation.Althoughchangeswithintheenablingenvironmentcanbemoredifficulttorealizeandcantakemoretime,thesechangescanhavewiderandmoredurableresultsthanthedirectimpactofstrengtheningenterpriseperformance.Improvementsintheenablingenvironmentcanraisetheperformanceofmanymoreactorsthancertificationcurrentlyachieves.
Yourchoiceofstrategieswillbeinfluencedbywhatyouknowofthecontext.Forexample,inaweakgovernancecontext,itislikelytobemorechallengingtoinfluencepublicpoliciesthaninastrongerone.Influencingpolicy
couldstillbeanoptionbutdoingsoviamulti-stakeholderplatformsmaybemoreeffective.Similarly,theremaybemorepotentialtoorganizestakeholdersaroundasectordialogueinsectorswhereactorsarefairlyconcentratedandthereisatleastaminimumlevelofmutualtrust.
Ifyourinitialassessmentisthatvaluechainapproachesareunlikelytobesuccessful,thenyouneedtoassesswhetherbroadersystemconditionscanbeinfluenced,eitherindividuallyorcollaboratively.Thiscanbeassessedbyansweringthefollowingthreequestions:
n Isthereabusinesscaseforkeypublicandprivateactorstopromotesustainability?
n Dothoseactorshaveleverageoverproducingenterprisesandvaluechainactors?
n Istheresufficientcivicspacetoinfluencethem?
BUSINESS CASE LEVERAGE CIVIC SPACE STRATEGIC CONSIDERATIONS
Good context to pursue systemic strategiestargetingrelevantactors(e.g.government,financialsector,valuechainactors,consumers).
Raiseawarenessandsenseofurgencythroughresearchandcampaigns.Engagewithleadersdecision-makerstoseewhatcanbedonetostrengthenthebusiness case.
Thiscanlimitpotentialeffectivenessofsystemicstrategieswithindividualstakeholders.Pursue collaborative strategiestogetdifferentactorsalignedandstrengthencapacitiesofkeypublicorprivatestakeholderstoincreasetheirleverage.
Potentialeffect of systemic strategies is large,butspacetoinfluenceislimited.Partnerwithlegitimateactorswhichhaveinfluenceoverdecision-makersorconsidertostrengthencapacitiesofCSOs.
ANY COMBINATION OF 2 OR 3 DISABLING CONDITIONS
Reconsider the relevance of systemic strategies. Startbestpracticepilotswithproducersandvaluechainactorsandstartcollaborativeaction(e.g.multi-stakeholderplatforms)toraiseawareness.
Enabling(positive) Disabling(negative)
TABLE 3:Possible scenarios and strategic considerations related to systemic strategiesSource: Choosing effective sustainability strategies based on enabling conditions
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3.3. CHOOSING THE RIGHT STRATEGIES
Onceyouunderstandwhethervaluechainorsystemicstrategiesaremorelikelytobesuccessfulinagivencontext,youneedtolookattherangeofstrategiesyouarealreadyimplementingandthoseavailabletoyouandchooseamongthembasedonwhatislikelytodrivethemostchangeandwhereyouarewell-placed,eitherindividuallyorcollectively.Youshouldalsoconsider
whetheranysequencingisrequiredinthestrategiesyouimplement,i.e.,whethersomethingneedstochangebeforesomethingelsecanbeimproved.
3.3.1. TYPES OF AVAILABLE STRATEGIESManyvaluechainstrategiesarefamiliartoyouandarealreadybeingimplementedbymostsustainabilitysystems:
EXAMPLES OF VALUE CHAIN STRATEGIES
STANDARDS Standardsdefinenormsorgoalsforproducersandvaluechainactors.Theycanbepractice-oroutcome-basedandhavebinary,step-wiseimprovement,orcontinuousimprovementcompliancemodels.Standardscanbesetforindividualactorsoragroupofactors(e.g.throughagroupcertificationorjurisdictionalapproach)andaregenerallycombinedwithassurance,chainofcustodyandclaimsmodels.
MARKET INCENTIVES
Marketincentivessuchaspricepremiums,minimumpricesandfairtradingpracticesrewardtargetgroupsfortheeffortofimprovingorreachingthedesiredlevelofperformance.
SUPPORT MECHANISMS
Thisreferstointerventionswhichhelptargetgroupstoimprove.Itcanconsistofcapacitybuilding,informationservices,decision-makingtools,accesstoinputsandtechnologyandfinancialsupportandservices.Supportcantargetstandardscompliance,butalsoapplytoawidersetofimprovements.
EXAMPLES OF SYSTEMIC STRATEGIES
PUBLIC AWARENESS RAISING
Activitiessuchaspubliccampaigningcaninfluencevaluesandnormswhichdrivebehaviouralchangeofspecificstakeholders
STAKEHOLDER DIALOGUE AND COORDINATION
Multi-stakeholderplatformsandpartnershipscanpromotetrust,alignment,collaborationandaccountabilitybetweenstakeholders.Thiscantakeplaceatlandscape,nationalorinternationallevel.
KNOWLEDGE DEVELOPMENT
Thedevelopmentanddisseminationofknowledgeandtoolsinthepublicspacesupporttargetgroupstomakeimprovements
SERVICE SECTOR DEVELOPMENT
Aviableservicesectorcreatesaccesstoservicesthattargetgroupsrequireinordertoimprove(e.g.training,inputs,finance)
PRIVATE SECTOR ENGAGEMENT
Thiscaninfluenceleadcompaniesandfinancialsectoractorstoadoptpoliciesandstrategieswhichfacilitateimprovementsoftargetenterprises
PUBLIC SECTOR ENGAGEMENT
Theaimistoinfluencethepublicpolicies,regulationandinvestmenttocreateincentivesandalevelplayingfieldforsustainabilityimprovements.
Systemicstrategiesarebroaderandinclude:
TABLE 4: Examples of Value Chain strategies
TABLE 5: Examples of Systemic Strategies
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3.3.2. ASSESSING YOUR CAPACITY AND IDENTIFYING YOUR ROLEOnceyouhaveidentifiedalonglistofpotentialstrategies,youshouldassesswhereyouarewell-placedtoimplementthem.Youwillneedtohaveagoodsenseoftheresourcesandcapacitiesyoupossess.Thisalsomeanslookingathowyoucanworkwithotherstakeholderswhomaybeinabetterpositiontoinfluencetheenablingconditions,eitherbyinfluencingthosestakeholdersdirectlyorbycollaboratingwiththemwhereyourinfluenceiscomplementary.
Somekeyquestionstoconsiderwhenassessingdifferentstrategiesinclude:
n WherehaveIbeenmosteffectiveinthepastandhowdoesthatalignwithareasofgreatestneed?Domyexistingstrategiescontinuetoberelevant?
n Whatismyorganizationalcapacitytoeffectchangeinthisregion?
n Whatrolehasthepotentialtoachievethegreatestvalueconsideringrolesplayedbyotherstakeholdersandinitiatives?
n Whichpartnershipsneedtobedevelopedtoensurecomplementaryrolesaretakenup?
Theanswerstothesequestionswillhelpyoutoeliminatethosestrategiesthatareeitherunlikelytobeeffectiveorwhereyouarenotwell-placedtoimplementthem.Ifyouneedfurthersupporttonarrowyourstrategies,thereareanumberofdecision-supporttoolstoguideyou:
n DescriptiveComparisons(e.g.pros-constable):Describingthestrengthsandweaknessesofeachstrategy,ofteninrelationtoacontextanalysis,asetofcriteriaordecisionnodes,and/oreachother.
n Criteria-BasedComparisons(e.g.absoluteorrelativerankingtables,consequencestables):Ratingeachstrategyacrossasetofcriteria.Typicalcriteriamightincludepotentialimpact,riskiness,feasibility(financial,technical,moral),fit,andgap.Youcouldapplythesecriteriausingarelativeranking,categoricalrating,orcardinalrating.Youmaychoosetoweightsomecriteriamorethanothers.
n Constrained-ChoiceComparisons(e.g.dot/point-basedvotingorknock-offtables):Selectingasetofstrategiesgivenabindingconstraint,suchastotalamountoffundsortimeavailable.
3.3.3. UPDATING YOUR THEORY OF CHANGEAtheoryofchangeisausefultoolforhelpingtounderstandandinfluencesituationsofcomplexityanduncertainty,anditismostpowerfulasalearningframework.Theoriesaretestedandupdatedasnewknowledgeemerges.Conductingaregionalcontextanalysisandresearchonpotentialstrategiescanprovidegoodinsightforupdatingoradaptingyourglobaltheoryofchangefortheregionalcontext.Itwillenableyoutorefineassumptionsabouthowchangehappensforaspecificcontextthatwillthenbehelpfulininformingyourevaluationoftheeffectivenessofanynewstrategiesyouareimplementing.
Theoriesofchangecanbeupdatedintwoways:eitheryoustartwiththeendgoalandworkbackwards,definingallthesignificantoutcomesthatneedtobeinplacetoachievethatgoal.Then,foreachofthoseoutcomes,dothesameexerciseofdeterminingwhatneedstobeinplacetoachievethatoutcome.Alternatively,andwhatislikelymorecommonforsustainabilitysystems,youcanreverseengineeryourtheoryofchange,startingwithachosenstrategyanddefininghowthatactionorinterventionwillleadtoshort-termoutputs,andthenontoshortandlong-termoutcomes,andfinallytothedesiredimpact.Ineithercase,thegoalistohavealogicalsequenceormapofresultsthatcanthenbeinterrogatedtodeterminewhetherthatlogicholdsupinpractice.Thisiterativeprocessofupdatingyourtheoryofchangeshouldhappenatregularintervalsdependingonthespeedatwhichsystemconditionsevolveoryourstrategieschange.
Practicallyspeaking,youarelikelytoalreadybeimplementingavarietyofvaluechainandsystemicstrategiesthatworktogethertocontributetoimprovedperformance.However,byworkingthroughtheabovesteps,itwillbeeasiertobemoreintentionalandtailoredinyourchoiceofstrategiesforagivencontext.Itislikelythatsustainabilitysystemswillworkondifferentapproachessimultaneously,e.g.,whiledevelopingbetterimplementationmodelsandvoluntarystandards,youcouldalsosetthesceneforpre-competitivecollaborationandregulatoryreforms.Inchoosingstrategies,mostsustainabilitysystemswillidentifyaleadingorprimarypathwaythroughwhichyouintendtoeffectchange,andasetofsecondaryorsupplementarypathwaysthatcomplementyourprimaryintervention.
3.4. PUTTING IT ALL TOGETHER
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ThefollowingexampleshowsatheoreticalmodelforhowtheAquacultureStewardshipCouncilcombinesstrategiestoeffectchangeinanindustryatthenationallevel.
FIGURE 4: Example of priority and supplementary pathways of change
PRIMARY PATHWAY (MARKETS SPACE): FOCUS ON FRONT-RUNNERS
Supplementary pathways (market and finance space)
Supplementary pathway (public sector space)
Supplementary pathway (multi-stakeholder space)
Support government in land use planning
Facilitate policy dialogue at national and provincial level
Demand creation for certified farm products
Business case development through impact monitoring
Engage with service providers (capacity, input,
finance)
Linkage to farmer groups
& processors
Develop better
products
Contribution to priority pathway
within program
focus
+ Contribution
to further scaling at country
level
Create farmer groups
Build capacities
and linkage to
services
Promote contract farming
with processors
Develop market
linkages
Certification / Uptake
of sustainable
practices
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ThisframeworkisbuiltonadecisiontreelogicthatISEALadvocatesthroughourImpactsCodethatsustainabilitystandardshaverobustmonitoringandevaluationsystemsinplacetomeasureperformancechangeovertimeinlinewiththeirtheoryofchange.Inpractice,thisisaboutregularlymonitoringperformanceatthelevelofthecertifiedenterprise,eitherthroughtheauditprocessorregulardatacollection,cross-referencingthiswithlonger-termoutcomesandimpactstudies,andusingyourtheoryofchangetoassesstheextenttowhichyourstrategieshelpedtobringaboutthedesiredsustainabilityperformanceimprovement.Inaddition,changeatamacrolevelneedstobeconsideredandthisrequiresustogetbetteratmeasuringandtrackingchangeatscale.
4.1.1. ASSESSING PERFORMANCE CHANGE AT A REGIONAL LEVEL Ifthelong-termgoalofsustainabilitysystemsistotransformregionsandsectorstomoresustainablepracticesandperformance,thennotonlydoweneedtounderstandperformancechangeatanenterpriselevel,butwealsoneedtoknowwhatishappeningatscale.Itisclearthatformanyissues,rangingfrombiodiversitytodeforestationandhumanrightstopoverty,itismoremeaningfultoassessperformancechangeataregionallevelandtounderstandourcontributiontowardsthatchange.
Therangeoffactorsinfluencinghowacomplexsystemevolvesmakesitcriticalthatsustainabilitysystemsunderstandwhatisworkingornotandwhy–sothatyoucanlearn,adapt,andimproveyourstrategiestobemoreeffectiveovertime.Therearetwotypesofmeasurementrequiredtounderstandhowyoursystemiscontributingtowardschange:
4.MeasureChange
n Sustainability performance (seesection4.1):whatisthecurrentsustainabilityperformanceandhowhasitchangedovertime–arethecriticalsustainabilitychallengesgettingbetterorworse?Thisistheperformanceoutcomeinformationthatstakeholdersaremostinterestedin.ISEALhasdevelopedawealthofresourcesthroughourM&Ecommunityabouthowtomonitorsustainabilityperformance.ISEALmemberscanfindthekeyresourceshere.
n Systemic change(see4.2):arethestrategiesyou(andothers)areimplementingcontributingtoachievingthedesiredsustainabilityperformanceoutcomes?Fortheeffectivenessofyourwork,itisimportanttoknowtwothings:whyperformanceisimprovingornot,andtheextenttowhichyourstrategiesplayedaroleinthatchange.
Puttingtogethertheperformancemeasuresandtheassessmentofintermediateoutcomeswillhelpyoutounderstandwhetheryourtheoryofchangelogicholdsandwhereanyadaptationsarerequiredeitherinthewayyouthinkchangecomesaboutorinthestrategiesyouareusingtobringaboutthatchange.
Forexample,ifyouareaimingtoimproveworkerhealthandsafetybutperformancemeasuresshowthatprogressisnotbeingachievedasquicklyasyouexpected,thenassessingchangesintherangeoffactorsinfluencinghealthandsafetycouldhelptoidentifythecausesofthisslowprogress,e.g.,thatthereislittleregulatoryenforcementofstatutoryhealthandsafetyrequirements.Thiscould,inturn,causeyoutoadaptyourstrategiestofocusmoreoninfluencingtheregulatoryenvironment(thesystemcondition).
4.1. PERFORMANCE MEASUREMENT
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Insomecases,sustainabilitysystemsarealreadyintegratingregionalscaleperformancedataintotheirM&E.Wherethisisnotyetthecase,orjustbeginning,therearethreeapproachestobetterunderstandregionalperformance:
n Primarydatacollectionthroughsamplingofperformanceorpracticeacrosstheregion,e.g.throughhouseholdorcommunitysurveys,orfieldstudies.Thechallengeisthatthesemethodsofdatacollectionatscalecanbeexpensiveandtime-consuming,dependingontheapproachtakenandsizeofsamplerequired.
n Wheretherearealargenumberofcertifiedenterpriseswithinaregion,itmaybepossibletocombinedataacrossthoseenterprisesandextrapolateuptoaregionalscale.Ideallythiswouldincludesomedatafromnon-certifiedenterprisestogiveamorebalancedpictureofregionalperformance.
n Theotheroptionistoaccessexistingregionaldatasetsorgeospatialdatalayers.Thechallengehereisfindinggoodqualitydataattherightscalethatprovidesinsightontheparticularissuesyoucareabout.Geospatialdatahastheadvantageofvisualrepresentationthatcanbelayeredwithotherdatatoprovidemorenuancedanalysesofperformance.
4.1.2. ASSESSING CREDIBILITY AND SUITABILITY OF DATA SOURCESAdatasourceisoftenanexistingsetofdatacollectedbyasecondaryentitylikearegionalornationalgovernmentoranacademicorresearchinstitution.Theavailabilityofthesedatasourcesneedstobeweighedagainstthequality,
relevance,localavailability,andtimelinessofthedata.Anavailabledatasourcethatdoesnotgiveup-to-dateinsightsonmeaningfulindicatorsisnotofmuchvalue.
Datasourcesformonitoringshouldbeappropriatetothecommodity,geography,andproductioncontext,andtothenatureoftheissuesbeingassessed.Itisunlikelythatyouwillfindtheperfectsecondarydataset.Inpractice,yourevaluationofexistingdatasetswillbebasedonwhichonesbestmeetacombinationofthefollowingfactors.Thismayrequirecollectionofprimarydataincaseswherecrediblesecondarydatasourcesdonotexist:
n Relevance: thedataisrelevanttotheissueandindicatoryouareseekingtomeasure.
n Accuracy: thedataisreliablebecauseitisofgoodqualityandcomesfromawell-resourcedandreputablesource.Accuracycanbestrengthenedbytriangulatingorcross-referencingtwoofmoreoverlappingdatasets.
n Spatial Resolution:thedatasetcoversatleasttheareayouarefocusedonwhileremaininggranularenoughtobemeaningful.
n Temporal Resolution:thedatasourceincludesup-to-datedataandthefrequencyofupdatingissufficienttomaintainthedata’srelevanceovertime.Havinghistoricaldataalsoprovidesinsightintotheconsistencyofthedataovertime.
n Accessibility:thedataisavailablewithoutunduecostburden.Thereisoftenanimportanttrade-offhereasdatasourcesthatarefreeandeasilyaccessiblemaynotbeaccurateorrelevantenoughtobeofvalue.
MSC USE OF EXTERNAL BASELINE DATA FOR PERFORMANCE MEASUREMENT
MSCneededtodemonstrateprogrammereachandimpactinawaythatwastiedtocertificateuptakeorcertifiedunits.ThesolutionwastolookatglobalfisheriescapturedataprovidedandmaintainedbytheFAO.Integratingtwosubstantialhistoricaldatasets–globalFAOcapturedatacombinedwiththeinternalMSCcapturedataintheMSCdatawarehouse–hasgivenallstaffeasyaccesstodataontrendsingloblalvolumebyspecies,country,regionsandmoreinadashboard.
ReadmoreaboutthisandothermemberexamplesincludingtipsfrommembersoncombiningandusingdatasourcesintheISEALpaperon‘Unlockingthevalueofdata’
Source: Unlocking the value of your data: A practical guide for sustainability systems to turn data into actionable insights.
© sdecoret
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4.2. SYSTEMIC CHANGE MEASUREMENT
Thereisgrowingrecognitionamongsustainabilitysystemsoftheneedtocapturethedeeperchangesthatareoccurringinthesystemsinwhichwework.Thechallengeishowweunderstandcauseandeffectwhensystemicchangeis,bydefinition,non-linear.Beforeembarkingonameasurementmethodology,itisusefultoconsiderafewkeypoints:
n No single methodology: Therearevariousmeasurementmethodsandtoolsavailableandnosinglemethodologyisbetterthanothers.Itismoreimportantthatyourchosenmethodologiesprovideappropriateandusefulinsightsandthatyouusethoseinsightstoimproveyourstrategies.
n Judgement matters: Goodjudgementisneededwhendeterminingwhatyouaremeasuring,whyyouaremeasuring,forwhomandwithwhatmethod.Professionaljudgementaboutwhatismaterialorrelevantwillguideyouonwhichmethodologyworksbest.
n Consider the level you are operating at (micro, macro): Thisalsoplaysapartindeterminingwhatandhowyoumeasurechangeatthatscale.
4.2.1. MEASUREMENT METHODOLOGIES AND TOOLS AVAILABLESystemicchangemeasurementisaboutunderstandingwhatchangeshavehappenedinaregionorsystemandtheextenttowhichyouractionshavehelpedtobringthoseabout.Datatoinformthosequestionscaneitherbequantitativeorqualitativeoramixtureofboth(mixedmethoddesign):
n Quantitative methodsmeasurechangesintheintermediateoutcomes(performanceorbehaviours)tiedtoyourtheoryofchangeorrootcauseanalysis.Eachindicatorprovidesinsightonaspecific,predefinedelementofyourplan.
n Qualitative evaluation methodsaremorefocusedongettingasenseofwherechangesarehappeningandwhoorwhatisresponsibleforthosechanges.Usingqualitativemethodssuchassurveysallowsustoexplorehowexternalstakeholdersfeelthesystemhaschanged.Qualitativeinformationisausefulcomplementtoquantitativedataasitprovidescontextandensurestherelevanceofquantitativeindicators.
Thefollowingsectionsdescribesomecommonapproachesyoucanusetocollectquantitativeandqualitativedataaboutchangesinsystemconditions.
Quantitative Data / MethodsIfyoucarriedoutarootcauseanalysisinyourcontextanalysis,youwillhaveidentifiedfactorsthatpotentiallycontributetooneormoredriversofsustainability.Similarly,inyourtheoryofchange,youwillhaveidentifiedintermediateoutcomesthatyouexpecttoseeasthesystemprogressestowardsyourdesiredlong-termimpacts.Todeterminewhattomeasure,followthesesteps:
1.Identifyfromamongthosecontributingfactorsorintermediateoutcomestheonesthataremostlikelytocontributetothelong-termchangesyouwanttosee.
2.Foreachofthesecontributingfactors,listoneormoreindicatorsthatcanquantitativelymeasuretheextenttowhichthedesiredintermediateoutcomehascomeabout.Forexample,understandingtheextentofappropriateemploymentopportunitiesmaybemeasuredbyincomeperhouseholdperyearorbytheaveragelevelofeducationperhousehold.
3.Includeaminimumofatleastoneindicatorperfactororoutcomeandideallyincludeatleast4to5indicatorsperpillar(i.e.,areaofsustainabilityscope),dependingondataavailability,relevanceandquality.
4.Forindicatorswhereexistingdataisnotavailableorthedataisnotattheproperscale,consideraproxyindicator to take its place.
Giventhatyouareseekingtounderstandhowsystemconditionschangeovertime,itwillbeimportanttogatherbaselineinformationagainsteachoftheseindicatorsasthiswillgiveyouthereferencepointagainstwhichtomeasurechange.Thefrequencywithwhichyoumeasurethatchangewilldependonhowrapidlytherelatedconditionsareexpectedtochange.
Thereareavarietyofmethodologiesformeasuringthestatusofsystemchangeindicators.Muchlikeforperformancemeasurement,youcancapturedataonindicatorsusingexistingsecondarydatasetsorthroughquantifiableprimarymethodologieslikekeyinformantinterviews,focusgroupdiscussions,andsurveys.
Tounpackwhycertaininterventionshaveorhavenotbeensuccessfulandtheconditionsthatmayhaveinfluencedtheresults,itisalsousefultolookatthekeyintermediateresultsyouassessedanddescribesomeoftheexternalconditionsthatenabledorhinderedthesuccessoftheintervention.
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Qualitative MethodsIncomplementtothequantitativedata,itisusefultoemployqualitativemethodstounderstandtheextenttowhichyouractionsorstrategiesresultedinthechangesyouaredocumentingintheintermediateoutcomes.Whereoutcomesareinfluencedbyavarietyoffactorsbeyondyourstrategies,itisimportanttofocusonestimatingyourcontribution(ratherthanattribution)totheseoutcomes.Plantocastawidenetforbothintendedandunintendedoutcomesandsystemschanges,andthenuseanevaluationapproachthatallowsyoutotestandexplorecompetingexplanationsforwhatisoccurring.
Thefollowinglisthighlightsafewexamplesofmethodologiesthattakethisbroaderapproach.
n Most significant change: Anapproachprimarilyintendedtoclarifydifferencesinvaluesamongstakeholdersbycollectingandcollectivelyanalysingpersonalaccountsofchange.Thisisanarrative-basedapproachtocapturingchangethroughthestoriesandassessmentsofthosedeeplyinvolvedandaffectedbychangeinitiatives.Stakeholdersidentifywhattheyconsidertobethemostsignificantchangeresultingfromanintervention.Theprocessgeneratesindividualstorieswhicharewinnoweddownbycategorizingthembytopicandchoosingthemostrepresentativefromagroupofstoriestoadvancetothenextlevel.Storiesmaybecollectedon a regular or recurring basis.
n Contribution Analysis:Anapproachforinferringcausalitythatreducesuncertaintyaboutthecontributiontheinterventionismaking.Afacilitatorandgroupofindividualswithstrongknowledgeofactivitiesinandaroundtheregionshares,validates,andrefinesthequantitativeinformationcollected.Thegroup’sobjectivesaretoincreaseunderstandingofwhytheobservedresultshaveoccurredandtherolesplayedbytheinterventionandotherinternalandexternalfactors.Theyareinterrogatinghowcrediblethetheoryofchangeorcontributionanalysisisandwherethereareweakpointsinthestorythatmayrequiremoreevidencetounderstandthecontributionofdifferentinterventions.
n Outcome harvesting:Amethodologyfortrackingmultipleandcumulativechangesthatemergeinthecourseofcomplexchangeinitiativesinvolvingdiverseactors.OutcomeHarvestingcollects(“harvests”)evidenceofwhathaschanged(“outcomes”)andthen,workingbackwards,determineswhetherandhowaninterventionhascontributedtothesechanges.Foreachoutcome,theharvesterusesavarietyofdatasourcestoassessthedegreetowhichoutcomeshaveoccurredandthecontributionoftheimplementertothatoutcome.Theapproachisretrospectiveinthatitfirstdescribesoutcomesandthenseeksplausibleexplanationsofhowtheoutcomesoccurred.
AIDENVIRONMENT USE OF A MIXED METHOD APPROACH TO ASSESS CHANGE AT FARM AND SECTOR LEVEL
In2014,AidenvironmentcarriedoutanassessmentofUTZ(nowRainforestAlliance)cocoaproducersinIndonesiatoexploretheimmediatecontributionsofUTZ’sstrategiestococoafarmersaswellastheircontributionstobroadersustainablesectortransformation.
BasedontheUTZ’sTheoryofChange,Aidenvironmenthasformulatedfourimpactpathwaysbeingon:(1)productivity(includingsocialandenvironmentalperformance,(2)cocoaquality,(3)marketaccess,and(4)tocreatingasustainablecocoasectorinIndonesia.FordatacollectionAidenvironmentusedamixedmethodapproachwherebythefindingsofthesurveydatacollected,fieldobservations,keyinformantinterviewsandfocusgroupsdiscussionswerealignedandcomparedtoestablishcontributionoftheprogramtothenotedimpact.Basedonthisprocessoftriangulation,highlyplausibleevidencewasestablishedtoanswertheresearchquestions.
Themixedmethodsapproachprovidedamoreholisticunderstandingofcausalrelationshipsandwherestrategiescontributedtoperformanceresults.Totheextentthatthequantitativedatareinforcesthequalitativefindings,thisapproachshouldallowfordefinitionofplausibleimpactsandunderstandinggsofwidercasueandeffectrelationships.
InUTZresponseontheevaluationseverallearningsfromtheevaluationarehighlightedaswellasthestepstheyundertakethefutureincreaseitsimpazctatfarmandsectorlevel.
Readmoreaboutthiscaseinthepaper‘EvaluationofUTZintheIndonesiancocoa sector’
Source: aidenvironment:Evaluation of UTZ in the Indonesian cocoa sector©UTZ
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4.3. ADAPTIVE MANAGEMENT
Learningfeedbackloopsmeanthatsustainabilitysystemsshouldactivelyintegratetheinsightscomingoutofdatameasurementandanalysisintoyourdecisionsaboutwhatstrategiesarebeingimplementedwhere,andwhatrolesyouandyourpartnersareplaying.Theanalysisshouldalsobeusedtoupdateyourtheoryofchangeabouthowdifferentactionsaremoreorlesslikelytocontributetothedesiredoutcomesand,ultimately,toyourperformancegoals.
Thefirststepistocombinewhatyou’velearnedaboutthechangesinsustainabilityperformance(4.1)withthefindingsofyourcontributionanalysis(4.2)tounderstandtheextenttowhichyouractionsorstrategieshelpedtoachievethatperformancechange:
n Ifyourstrategieshavebeeneffective,thenconsiderwhatitwouldtaketoscaleupthosestrategiestoeffectchangeonabroaderscaleormorequickly.
n Ifperformanceimprovedbutyourstrategieswerenotthemaincause,thenyoushouldexplorewhatfactorsdiddriveperformanceimprovementanddetermineifyoureffortscanenhanceofreplicatethosefactors.
n Ifperformanceisnotimprovingasexpectedorintended,youneedtoidentifywhatfactorshavebeenpreventingperformanceimprovement.
Atthispointitisusefultoupdateinformationyouhaveaboutthecontextinwhichyouareworking,todeterminewhetheranythinghaschangedthatislikelytohaveaneffect,positiveornegative,onsustainabilityperformanceandwhetherthelogicofyourtheoryofchangestillholds(i.e.dotheactionsleadtotheoutputsandtheoutputstotheoutcomes,etc.?)
Foryourtheoryofchange,ideallyyouwillhavedataontheextenttowhicheachofthemostimportantintermediateoutcomeshavebeenachieved.Torefineyourtheoryofchange,identifythoseoutcomeswherenochangeornegativechangehashappened.Inthesecases,itislikelythatthereareotherforcesatplaythathaveinfluencedtheactorsorconditions.Reviewyourassumptionsofhowyouthoughtchangewouldcomeaboutand,totheextentpossible,trytoidentifywhatotherfactorsmighthaveinfluencedtheoutcomethatyouhadnotyetconsidered.
Ifthereareconstraintstoprogressthatarenotyetbeingaddressed,thisisusefulinputalsoforyourstrategyevaluationprocessasitcanhelpyoudeterminewhetheryourinitiativeoryourpartnersareinapositiontoadaptyourstrategiestoaddresstheadditionalconstraints.
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Firstandforemostweareinterestedtocommunicateabouttheperformancechangesthathavecomeabout.Inordertodothis,weneedgoodqualitydataaboutperformanceatscalesthatarerelevanttoeachsustainabilityissue.Forexample,communicatingaboutreductionsindeforestationorbiodiversitylossattheproductionunitleveldoesn’tmakemuchsenseunlesstheproductionunitisverylarge.Conversely,communicatingaboutworkerhealthandsafetymaybemoreappropriatelytiedtoindividualenterprises.Ideally,theperformancedatathathasbeencollectedisatscalesappropriateformeaningfulcommunicationoneachissue.
Thereareanumberofdifferentwaysinwhichsustainabilitysystemscanreportperformanceandprogressagainstsustainabilityoutcomes,categorisedbroadlyhereintothreetypes:status,trend,andsubjectivevalueclaims. n Status claims:theseclaimscommunicatethecurrent
performancelevelofanissue,e.g.thereisnet-zerodeforestationinthisjurisdiction.
• Statusclaimsarethemostobjectivebecausetheyarestatingactualdata.Theydescribethecurrentperformancestatusofasustainabilityissue,e.g.‘Inthisregionin2019,only3%ofresidentswerelivinginextremepoverty.’
• Theseclaimsarestrengthenedifadditionalcontextisprovidedtoimprovestakeholders’abilitytointerpretthem,e.g.‘Thiscomparesto17%forthestateoveralland12%forthecountryoverall’.
5.MakeCredible ImprovementClaims
Whenyoumeasureperformanceimprovementsandchangesintheenablingcontext,notonlyisthisvaluableforadaptingandimprovingyourstrategies,italsoenablesyoutocommunicateeffectivelyaboutthosechangesandhowyourinitiativehascontributed.Improvementclaimsarelargelyaboutcommunicatingchangesinperformanceandtheactionstakentocontributetothoseperformanceimprovements.
• Wherebaselinedataalreadymeasuresapositivelevelofperformanceforoneormoreissues,e.g.thatthereisnochildlabourpresentinthisvillage,thiscanalsobethesubjectofstatusclaims.
• Acaveatofbothstatusandtrendclaims(below)isthatneitherprovideanindicationofwhethertheperformancelevelsareduetoasustainabilitysystem’sspecificactionsortoexternalfactors.
n Trend claims:thesecommunicateachangeinperformance,oftenagainstabaselineorasprogresstowardsatarget,e.g.region-widedeforestationhasbeenreducedby15%since2015.
• Trendclaimsareaboutthechangeinperformancethathasaccruedovertime.Theseclaimsrequireareferenceleveltobeinplaceorcanfunctioninrelationtoaperformancetarget.Trendclaimscanbepositive,negativeorneutral,e.g.sometimesnochangeisasignificantresultworthcommunicating.
• Iftrendsarenegative,itisimportanttobetransparentaboutthisandcommunicatethischange,evenifithighlightsshortcomingsinyourstrategies.
• Trendclaimsarealsomorerobustwhentheyincludeatimeframeunderwhichthechangehastakenplace,e.g.‘therateofbiodiversitylossinthisregionhasbeenreducedby5%inthelastyear’(baselinereference),or‘weare50%ofthewaytowardsmeetingour2025targetofzeronetdeforestationinthejurisdiction’(performancetarget).
• Claimsofperformanceimprovementscannotbemadeafterbaselineresearch;changewillbecomeevidentonlyaftersubsequentdatacollectionhasbeenconducted.
5.1. PERFORMANCE CLAIMS
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• Similartostatusclaims,trendclaimsareimprovedwiththeadditionofcontextualinformation.Forexample,isthe5%reductionintheexampleaboveanimprovementoverthepreviousyear?
n Subjective value claims:thesearedescriptiveclaimsthatseektoreflectperformanceacrossarangeofsustainabilityissuesorindicatorsandhavebeenmostcommonamongsustainabilitystandards.
• Themostfrequentexamplesofsubjectivevalueclaimsareenterprisesthatclaimtobe‘responsible’or‘sustainable’.Similarexampleswithaconservationfocusinclude‘biodiversity-friendly’or‘forest-positive’place-basedclaims.
• Theseclaimsreflectprogresstowardsorachievementofvarious‘valuesandpriorities’,ratherthanasingleperformancetarget.Theyaresubjectivebecauseuseofthetermsispremisedonfulfillingrequirementsagreedbystakeholdersratherthanasaresultofmeetingaspecificperformancelevel.
• Certificationofcompliancewithasetofpractices(practice-basedstandards)hasoftenhistoricallyservedasabasisonwhichtomakesubjectivevalueclaims,sincethosepracticesweredefinedthroughmulti-stakeholderprocesses.However,increasingly,stakeholdersareinterestedinperformanceoutcomesdirectly(performance-basedstandards).Inthiscontext,communicatingstatusortrendclaimsisincreasinglyrelevant.
Whileitispossibletocommunicateaboutperformancechangethathasoccurred,therealvalueforsustainabilitysystemsisthatyouwanttobeabletocommunicatehowyourstrategiesandactionshavecontributedtothatchange.
Itisfairlystraightforwardforsustainabilitysystemstomakeclaimsorcommunicateabouttheactivitiesorstrategiesyouhaveimplemented.Thesituationgetstrickierwhenyoutrytomakelinksbetweenyouractionsandtheperformancelevelsorimprovementthathasbeenachieved,e.g.wetrained1,000farmersinthisregionlastyearandaveragefarmerproductivityintheregionincreasedby10%overthesameperiod.Youshouldconsideraligningwiththefollowingguidanceforcontributionandattributionclaims.
Contribution:theseclaimsareaboutactionstakeninlinewithyourtheoryofchangethatcontributetodefinedperformanceoutcomes.
n Communicatingabouthowyouractionscontributetoperformancechangesshouldbuildfromyoursystemicchangemeasurementandcontributionanalysis.Ideallythecontributionanalysisgivesyouatleastaqualitativesenseoftheextenttowhichyouractionsweresignificantindrivingchange.
n Contributionclaimsarealsostrengthenedbydatafromanalysisofyourtheoryofchangelogic.Wheredataaboutinterimoutcomessuggeststhattheassumptionsyoumadeholdtrueabouthowchangeislikelytohappen,thisstrengthensthecasethatyouractionscontributedinparttotheperformancechanges.
n Sustainabilitysystemsaremorelikelytobeabletomakestrongerclaimsofcontributionforissueswherethescaleatwhichimprovementsarehappeningissmall.Forexample,youcandrawastrongercorrelationbetweentrainingworkersonagrochemicaluseandthereductionofon-farmpesticideusethanyoucanbetweenconservationofriparianzonesandreductionsinregionalbiodiversityloss.
n Contributionclaimsneedtobeputincontext,includingasenseoftherelativescaleandintensityofthecontribution4:
• Thenatureoftheactionsshouldbedescribedclearly,specifically,andtruthfully.Thishelpstoavoidoverclaimingtheimpactsofyourcontributions.
• Theextentoftheactionsshouldbespecified,typicallyinquantitativeterms,andshouldbecontextualizedsothattheirscaleandscopecanbeinterpretedproperly.
• Thetimeframeforimplementingtheactionsshouldbedefinedanddocumented,alongwithprogressbeingmadeinimplementation.Wheretheactionsareongoing,thesustainabilitysystemshouldpublishinformationatleastonceayearthatsummarisesthisprogress.
• Iftheactionentailsacontributiontoabroadereffort,thentheextentandnatureofthesustainabilitysystem’sspecificcontributionshouldbespecified,e.g.wereyoufullyorpartiallyresponsibleforthisaction,ananchorpartnerorsupportingpartner,deliveringtheactionorsupportingotherstodoso?
Attribution:theseclaimsmakeastrongerlinkthatactionstakenresultedinorcausedspecificsustainabilityperformanceimprovements.
n Attributionrequiresthatasustainabilitysystemcanshowacausallinkbetweentheirsupportingactionandachangeinperformance.Thiscausallinkcanbeassessedthroughimpactstudieswithcounterfactualsorwithacontrolgrouptoshowwhatwouldhavehappenedinasimilarsituationwithnointervention.However,inpractice,determiningattributionisinherentlycomplicatedincontextswheremanyactionsarebeingtakenbymanydifferentstakeholders.Seethisadditionalinformationonattribution.
5.2. CONTRIBUTION CLAIMS
1.AdaptedfromAFiOperationalGuidanceonReporting,DisclosureandClaims
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n Ifasustainabilitysystemdoesseektomakeanattributionclaim,youshoulddosoforaspecificandlimitedgrouporareathatyouhavesupporteddirectly.Eveninthesecases,attributionclaimswillrequirethatacredibleandappropriateresearchmethodologyisfollowedtoestablishthecausallinks.
Theintegrityofyoursustainabilityperformanceorcontributionclaimsisstrengthenedifthereisacrediblebodyofevidencetosupportthem.Thepracticesthatyouputinplace,fromyourimprovementstrategiestoyourmonitoringmethodology,willserveasthefoundationsonwhichtomakecredibleclaims.Amongthekeyfactorscontributingtotheintegrityofasustainabilityclaimarethesupportingevidencethatismadeavailable,andtheextenttowhichstakeholderscantrusttheresults.SupportingEvidence
Additionalinformationhelpstosupporttherigourofaperformanceclaimorcommunication.Yourclaimwillbestrengthenedifyouspecify:
n Theevidencebase(datasourcesandresearchresults)behindtheclaim.
n Thecontexttowhichtheclaimapplies,e.g.isitapplicablegloballyoronlyinrelationtoaparticularcountryorregion?
n Whoseresultsyouarereferringto(i.e.whatintervention)andaboutwhom(i.e.theentityorregionwhereperformancehasimproved).
n Overwhatperiodtheresultswereachievedandforhowlongtheresultshold(i.e.thetimelimitonclaims).
Additionalinformationthatyoucanmakeavailableonrequesttosupporttheintegrityofyourclaimscaninclude:
n Thetimeperiodwhenthesourcedatawascollected;
n Clarityonwhocollectedandanalysedthedata(internalstafforexternalresearchers)andtheresearchmethodsused;
n Contactdetailsofanyindependentpartyinvolvedincarryingouttheresearch;
n Adescriptionofthemethodsusedandanyassumptionsmade,especiallyiftheclaiminvolvesacomparisonwithotherproductsorservicesordirectlyattributeschangetothesustainabilitystandard;
n Consenttonameorganisationsorindividuals(ifthisisneededforaclaim)orclearrulesandproceduresforanonymization.
n Ifsomeoftheinformationneededtosubstantiateaclaimisconfidential,youshouldconsiderwhethertherewouldbeadequateevidencetoverifytheclaimifthatconfidentialinformationwereexcludedormadeanonymous.
Whensustainabilitysystemschoosetoimplementstrategiestoinfluencesystemconditions,thegoalistostrengthenthelikelihoodthatyourvaluechainstrategieswilldriveimprovedperformance.Mostcommunicationwillcontinuetobeaboutthatperformanceimprovement,butthereareinstanceswhereitisalsousefulforyoutocommunicateaboutchangesinsystemconditions.
Communicatingaboutsystemconditionsisoftenfocusedonwhathaschangedintheenablingenvironmentandwhythat’simportantforimprovingperformance.Whereperformancechangemaytakealongtimetoberealised(e.g.improvementsinregionalbiodiversity),thereisvalueincommunicatingaboutthestepsthathavebeentakenortheprogressmadetoputinplacetheconditionsthatwillmakeperformanceimprovementpossibleinthefuture.
Communicationsaboutsystemicchangecanfocusonwhatyouhavedone(actionsorcollaborations)and/orwhatchangeshavecomeabout.Thesecommunicationscandrawonthedatayouhavecollectedaboutchangestointermediateoutcomesandhowthisislinkedtothepotentialforlongertermperformanceimprovementsorsectortransformation.Whentalkingaboutsystemicchange,thesameguidelinesapplyabouthowandhowmuchyouareabletolinkyourstrategiesoractionstothechangethathascomeabout(contributionorattributionclaims).
5.3. STRENGTHENING THE INTEGRITY OF THE CLAIM
5.4. COMMUNICATING CHANGES IN SYSTEM CONDITIONS
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Thisframeworkisbuiltonadecisiontreelogicthatsustainabilitysystemscanusetoimprovetheeffectivenessoftheirstrategies(Figure5).Thedecisiontreestartsfromtheassumptionthatsustainabilitysystemshaveaglobaltheoryofchangeinplacethatinformstheirchoiceofstrategies,andthatthistheorymayneedtobeadaptedtodifferentregionalcontexts.Thedecisiontreepresentsamodelforhowsustainabilitysystemscandothisandthefeedbackloopsthatwillsupportthemtoimprovetherelevanceandeffectivenessoftheirstrategiesovertime.
Sustainabilitysystemsareprimarilyimplementingmarket-basedvalue chain strategiessuchascertification,capacitybuilding,orgrowingmarketdemand.Thesearetheprimary pathways,shownontheleftsideoffigure1,thatusemarketsandsupplychainstocreateincentivesforenterprisestoimprovetheirperformance.Inmanycasesthesuccessofthesevaluechainstrategiesislimitedbyexternalfactorsrangingfrompoliticsandpowerdynamicstomarketstructuresandsocietalnorms.Asaresult,somesustainabilitysystemsarealsoseekingtopositivelyinfluencetheseexternalfactorsthroughtheuseofsystemic strategies.Thesearethesupporting pathways,shownontherightsideoffigure1,thatseektocreatethesystemconditionsthatwouldallowforthesuccessfulscalingupofvaluechainstrategiesandimprovedsustainabilityoutcomes.
Annex 1.Howtousethisdocumentasareferencefordecisionmaking?
Figure 5: Decision tree for improving the effectiveness of sustainability system’s regional strategies
NO
NO
Poor implementation
PRIMARYPATHWAYS
SUPPORTING PATHWAYS
Implement value chain strategies
Implement systemic strategies
Adapt global theory of change to
regional context
Communicate changes in system
conditionsCommunicate
changes in performance
Are there barriers to
scale?
Lower ambitions
Adapt strategies
Improve competence
or collaborate
Adapt theory of
change
Adapt theory of
change
Improve competence
Adapt strategies
Identify systemic
strategies
Not well-placed to influence
Context changed
Why not?
Poor implementation
Wrong strategies
Why not?
YES
Are enabling conditions improving
NO YES
Is performance improving
YES
Systemic barriers
DECISION TREE FOR ADAPTING STRATEGIES
UNDERSTAND OR UPDATE CONTEXT
UNDERSTAND OR UPDATE CONTEXT
UNDERSTAND OR UPDATE CONTEXT
UNDERSTAND OR UPDATE CONTEXT
MEASURE CHANGE
MEASURE CHANGE
COMMUNICATE
IDENTIFY OR ADAPT STRATEGIES
Scale up value chain strategies
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ISEAL IS THE GLOBAL MEMBERSHIP ORGANISATION FOR AMBITIOUS, COLLABORATIVE AND TRANSPARENT SUSTAINABILITY SYSTEMS.
Wesupportandchallengeourmemberstocontinuallyimprovetheirimpactforthebenefitofpeopleandplanet.Ourmembersaresustainabilitystandardsandrelatedsystems,whichcollaborateinordertoscaleanddemonstratepositiveimpact.Ourregularlyupdatedcodesarearecognisedframeworkforbestpractice,andcompliancewiththemisamarkofcredibility.
Wesupportandchallengeourmemberstocontinuallyimprovebyprovidingforumsforcollaboration,collectiveactionandsharingofexperience;deliveringexpertise,adviceandtraining;facilitatingaccesstofundingtopromoteinnovation;andadvocatingfortheadoptionofbetter,morecrediblesustainabilitysystems.
Forbusinesses,governmentsandNGOs,weprovideopportunitiestoconnectwithsustainabilitysystems,aswellasinformation,resourcesandeventstoencouragetheuseofcredibleschemes.
About ISEAL
This project is supported by The Walton Family Foundation and The David & Lucile Packard Foundation
