Master Class "Sourcing responsibly for natural capital"

www.leadersfornature.com @Leaders4Nature

Master class II‘Sourcing responsibly for Natural Capital’

BETTE HARMS

ADVISOR BUSINESS &

BIODIVERSITY

Coordinator of the Leaders for Nature Academy


Natural capital


Responsible sourcing

Identify1

2 Assess

Measure

Take action

Integrate

Engage

3

4

5

6

Six steps to future-proof

your business


Natural Capital Road Map


In company session


Programme 16.30 Arrival

17.00 Welcome by Bette Harms (IUCN NL)

17.15 Presentation by Anniek Mauser (Unilever Benelux)

18.00 Presentation by Rolf Hogan (RSB)

18.45 Networking dinner

19.40Introduction to sourcing sustainable aluminium by Giulia Carbone (IUCN)

20.00 Introduction to sustainable agro-commodities by Jerwin Tholen (KPMG)

20.30 Incubator sessions on:

1. Agro-commodities by Heleen van den Hombergh (IUCN NL)

2. Aluminium by Giulia Carbone (IUCN)

21.15 Closing by Bette Harms



Anniek Mauser

• Director Sustainability at Unilever Benelux


Rolf Hogan

• Executive Secretary of the Roundtable of Sustainable Biomaterials

Rolf Hogan, Executive Secretary

Roundtable on Sustainable Biomaterials

Sourcing responsibly for natural capital

using certification

Leaders for Nature Master Class 16 June, Diergaarde Blijdorp.

Getting it right!

1. The Roundtable on Sustainable Biomaterials

2. The RSB Standard

3. RSB and natural capital

4. Biofuel to biomaterials and the bio-based economy

5. How RSB certification works

6. Beyond verification - additional benefits of certification

7. Choosing a ‘credible’ certification scheme?

Overivew of presentation

Biofuels: the promise

Biofuels: the social and environmental impact

The Roundtable on Sustainable Biomaterials

2007 EPFL: WEF, UNCTAD, UNEP, Toyota, Shell, Petrobras, NWF, WWF

RSB stakeholders

120+ organizations from 30 countries including 30 NGOs

Governance

Chamber 1: Biomass producers (17)

Chamber 2: Biofuel producers (22)

Chamber 3: Biofuel blenders and users (10)

Chamber 3: Biofuel blenders and users

AeroMexico

Air China

Air France

Air New Zealand

British Airways

Cargolux

Cathay Pacific

Etihad Airways

GOL

JAL

KLM

Lufthansa

Quantas

SAS

United Airlines

Virgin Atlantic

Virgin America

Chamber 4: Trade Unions & NGOs (4)

COVERCO

Chamber 5: Social NGOs (6)

Chamber 6: Environmental NGOs (17)

Chamber 7: Government and academia (25)

II. The RSB Standard

Principles & Criteria

Guidelines on ESIA and Stakeholder EngagementPrinciples CriteriaLegality - Conform to national laws and international

agreements

Impact Assessment and Stakeholder Consultation

- Impact assessment & management plan- Free, Prior & Informed Consent, gender sensitive,

consensus-based- Business plan

Use of Technology, Inputs, & Management of Waste

- Information on use of technologies available- GMOs minimize risk & improve env / social

performance- Storage, use & disposal- Residues, wastes and byproducts


Principles Criteria

Greenhouse Gas Emissions

- 50% reduction over fossil fuels (EU: 35%)- Meet additional national requirements

Conservation [biodiversity]

- Conservation values of local, regional or global importance maintained/enhanced

- Ecosystem functions & services maintained/enhanced.

- Ecological corridors protected, restored or created to minimize fragmentation

- Prevent invasive species in adjacent areas


Principles Criteria

Soil - Maintain / enhance soil physical, chemical, and biological conditions

Water - Respect rights of local & indigenous communities- Water management plan - Not deplete beyond replenishment capacities- Enhance / maintain water quality

Air - Air management plan – identify & minimize pollution emissions

- Avoid / eliminate open-air burning


Principles Criteria

Human & Labor Rights

- Freedom of association, the right to organize, and the right to collectively bargain

- No slave labor - No child labor- Wages and working conditions respect laws and

international conventions - Occupational safety and health follow internationally-

recognized standards- Labor contracted through third parties


Principles Criteria

Rural & Social Development

- Socioeconomic status of local stakeholders improved- Special measures to benefit and encourage

participation of women, youth, indigenous communities and the vulnerable

Local Food Security

- Assess and mitigate risks to food security- Enhance the local food security of directly affected

stakeholders

Land Rights - Informal and formal rights established- Free, Prior, and Informed Consent

III. RSB and Natural Capital

- Conservation values of local, regional or global importance maintained/enhanced

- Ecosystem functions & services maintained/enhanced.

- Ecological corridors protected, restored or created to minimize fragmentation

- Prevent invasive species in adjacent areas

Conservation - biodiversity

Water

Respect rights of local & indigenous communities

Water management plan

Not deplete beyond replenishment capacities

Enhance / maintain water quality

Soil

Maintain / enhance soil physical, chemical, and biological conditions

Air

Air management plan – identify & minimize pollution emissions

Avoid / eliminate open-air burning

Water, Soil, Air

Certification is an excellent tool but cannot address all sustainability issues

Mostly limited to site-level issues

Usually do not address cumulative impacts

RSB has some landscape approaches for water and food security

It also encourages participating operators to engage at landscape / national level to address sustainability

Beyond the fence – landscapes approaches

Bioscience and growing demand for food, feed, fiber and fuel is changing agriculture

Bio-based alternatives to energy and materials more mainstream

Plastics, pharmaceuticals, oil, lubricants, paints . . .

Bio-refinery model producing several food, energy and material outputs

IV. Biofuels to the Bio-based economy

Biomaterials

RSB Certification applies worldwide and to all products derived from biomass, including:o Biofuels and bioenergy

o Bio-chemicals

o Bio-plastics & Biopackaging

o Fiber

o Food additives

o …

V. How RSB Certification Works

Roundtable on Sustainable Biomaterials(Governance, Standard development)

Business Development Unit(marketing & implementation)

Accreditation Body

Certification Body

Certification Bodies Participating Operators

1. Application

2. Public comment

3. Contract certification body

4. Screening / risk assessment / Green house gas calculator

5. Desk review

6. Field audit

7. Certificate issued

8. Ongoing audits

The Certification process

Audit process for crop-based biofuels

Required Compliance

Feedstock Production

Trade/Transport

Feedstock Processing

Trade/Transport

Biofuel Production

Trade/Transport

Biofuel Blending

Trade Transport

Final Consumer

ENV/SOC GHG (LCA)

CoC

Primary benefit

3rd party verification of sustainability

Beyond verification

Build capacity on a range of sustainability issues

Effective mechanisms to manage and monitor performance on environmental and social

Identify and mitigate risks

Improve management systems

Strengthen supply chains

VI. Benefits of certification

Eastern Cape Provence

Moving South Africa forward towards oilseed certification

• “Presents a simplified structured approach to general business management including documentation of all the critical processes

• “Empowers the farmer to be in touch with the operations of his/her business and continuously track performance

• “Helps the farmer to continuously improve way of doing business which in itself creates sustainability”

Pilot project supported by NL Agency on 1000 hectares of maize and

soybean.

RSB Smallholder Program

Certification can help:

• Provide market access

• Enhance sustainable

production and efficiencies

• Promote cooperation

RSB Program:

• Field projects to support

certification & link to markets

• Engage business to source

from smallholders and create

incentives for certification

(UN SE4All)

VII. Choosing a ‘credible’ certification scheme

ISEAL Alliance

RSPO RTRSRSB

Bonsucro

ISCC NTA8080

2BSVs

REDCert Red TractorGreenergy Abengoa

Ensus SQC

Source: Searching for Sustainability: Comparative Analysis of Certification Schemes for Biomass Used for the Production of BiofuelsWWF Deutschland (2013), with support from the German Ministry for Food, Agriculture and Consumer Protection

• Means of verification:• Certification scheme A: country has

ratified ILO convention CO29 (1930) on forced labour (175 countries)

or• Certification scheme B: auditors conduct

stakeholder surveys and staff interviews to figure out cases of forced labour

– Impact on Cost

No forced labour on farms

+ R

OB

US

TN

ES

S

-

1. ISEAL Alliance member

2. Multi-stakeholder approach

3. Strong NGO support

4. Mission-driven organization

5. Realistic view of sustainability niche

What to look for

Getting it right!

Thank you!

For More Information

[email protected]

RSB Secretariathttp://www.rsb.org

mailto:[email protected]


Questions and answers


Networking dinnerWe will be starting again at 19.40


Giulia Carbone

• Deputy Director of the Business and Biodiversity Programme at IUCN

• Management of the Aluminium Stewardship Initiative

aluminiumaluminiumstewardship stewardship initiativeinitiative

Aluminium Stewardship Initiative:

A Value Chain ApproachRotterdam, 16 June 2014

KEYNOTE PRESENTATION

Aluminium Growth Story

Lower GHG emissions through lighter vehicles and through its recyclability

Bringing energy efficiency for cities and building in an energy constrained world

Preserving food and medicines through its unique barrier properties

Aluminium in Automobile Production

Aluminium in Coffee Capsules

Aluminium in Food & Beverage Packaging

Industry is under increased scrutiny

From communities located around industry

Local communities

Environmental authorities

NGOs,

From stakeholders involved with the value-chain :

• Consumers, thus retailers

• Big brands who influence the entire supply-chain

• Product designers, architects, Material specifiers

Both contituencies require increased transparency

63

Industry is under increased scrutiny

From communities located around industry

Local communities

Environmental authorities

NGOs,

From stakeholders involved with the value-chain :

• Consumers, thus retailers

• Big brands who influence the entire supply-chain

• Product designers, architects, Material specifiers

Both contituencies require increased transparency

64

The ASI Standard

65

The Aluminium Stewardship Initiative

• It brings together leaders in the aluminium value chain committed to maximising the value that their product and activities generate while minimising their negative impacts

• Supporting companies are: Aleris, Amcor Flexibles, AMAG/Constantia Flexibles, Audi, Ball Corporation, BMW Group, Constellium, Hydro, Jaguar Land Rover, Nespresso, Novelis, Rexam, Rio Tinto Alcan, and Tetra Pak

• ASI’s first goal is the development of the Aluminium Stewardship Initiative Standard

66

The ASI Standard

The aim of the ASI Standard is to foster responsible resource management of aluminium through the entire value-chain

The Standard will define principles and performance criteria in the area of governance, environmental and social practices

ASI’s Standard-setting process will be a fully multi-stakeholder one, in compliance with ISEAL’s standard-setting code (V5.0), which establishes rules for legitimate and effective standard-setting processes

It will build on the many existing good practices and standards developed within the Aluminium industry and within other relevant sectors

67

Sustainability “hotspots”

Material Stewardship

Energy and greenhouse gases

Bauxite residues, SPL and dross

Biodiversity Conservation

Human Rights

68

Linking the various process steps through a Chain of Custody

• Company and/or facility level.

• Only relevant to the CoC of the aluminium which enters a facility for processing or handling and passing onto the next stage of the supply chain.

• Companies may be involved in the value chain of other metals this standard is only relevant at the facilities in the Aluminium value chain.

69

Linking the various process steps through a Chain of Custody

Mass balance:o Administrative systemo No physical traceabilityo All material is either ASI compliant or eligible

for mixing

70

The Standard Setting process

• The Standard Setting Group is the leading body in the development of the standard

• It includes the 14 companies supporting ASI and 15 non industry representatives

• With a balanced stakeholder representation from industry and non industry groups, the Standard Setting Group will review the various drafts and comments received during the consultation

• The Standard Setting Group conduct its business during face to face meetings (3 planned in 2014) to revise the comments received and decide what changes to make

• Two public consultations are organized during which the Draft ASI Standard is available to the public for comments

71

The Standard Setting Group

15 non industry representatives selected for the expertise and reputation

Together with the representatives of the 14 ASI Companies will decide on the ASI Standards

These include include : Cleaner Production Center South Africa and India Ecofys EMPA – Materials Science and Technology Fauna Flora International Forest People Programme IndustriAll Social Accountability International Transparency International WWF

72

The Standard Setting Process

73

First Standard Setting Group

review (21-23 January

2014)

First Public Consultatio

n (1 February -29 March

2014)

Second Standard Setting Group

review (13-15

May and 1-2 July 2014)

Second Public

Consultation (14 July –

7 September

2014)

Third Standard Setting Group review (23-25

September 2014)

Final approval

and launch of ASI

Standard Version 1

(by 31 December 2014 - to

be confirmed)

COMPLETED

COMPLETED

IN PROGRESS

ASI Standard Implementation

Different options being discussed, from Third party Certification to Public Reporting Platform

A Stakeholder Forum will be maintained

ASI will establish its self as an independent organization

Role of an Initiative vs role of the relevant Industry associations

74

Key Challanges

The standard can be designed for the leaders or designed for “entry level” performance

Should the sustainability issues be addressed only by a sub section of the value chain (where these issues are more prominent) or a due diligence process should determine where the issues need to be addressed?

Voluntary standards at global level and different local requirements

Building a critical mass of industry and non industry stakeholders : why non industry don’t want to participate? Why certain industry take the leap of faith and participate.

From the commercial/consumer goods producers: they are aware that they won’t be able to source 100% ASI material – so risk of under-delivering

Implementation: Ensure that there is enough material flowing Costs of verifications seen as a barrier75

Questions

1. What sustainability issues have your customers raised in relation to your use of metals?

2. Implementing a Standard: what are the possible options (in terms of systems and verification) that would guarantee credibility to your sourcing scheme?

3. Tracing back: how important is this for you? 76

aluminiumaluminiumstewardship stewardship initiativeinitiative

Giulia CarboneDeputy Director

Business and Biodiversity ProgrammeIUCN

[email protected]/business

www.aluminium-stewardship.org

For further information

77

mailto:[email protected]

http://www.iucn.org/business

http://www.aluminium-stewardship.org/

The Second Standard- Setting Group Meeting

15-17 May 2014 • Gland Switzerland

CLOSE-UP

CLOSE-UP

CLOSE-UP


Jerwin Tholen

• Associate Director at KPMG Sustainability

Introduction to sustainable agro-commodities

An analysis conducted on behalf of PBEE, CBL, FNLI, IUCN, N&M and VNO-NCW

KPMG Sustainability

16 June 2014

ksteinbusch

Hier heb ik de samenwerking met alle partijen nog steeds opgenomen omdat er ook mensen van N&M (Marnix Koopmans) in de zaal zitten.

85© 2014 KPMG Advisory N.V., ingeschreven bij het handelsregister in Nederland onder nummer 33263682, is een dochtermaatschappij van KPMG Europe LLP en lid van het KPMG-netwerk van zelfstandige ondernemingen die verbonden zijn aan KPMG International Cooperative (‘KPMG International’), een Zwitserse entiteit. Alle rechten voorbehouden. Gedrukt in Nederland. De naam KPMG, het logo en ‘cutting through complexity’ zijn geregistreerde merken van KPMG International.

Setting the scene…..

Opportunities for the sector…..- From 7 to 9 billion by 2035- Middle-class purchasing power

+172% by 2030- Demand for food +50%

However………..- Between 5-8 million ha/year lost- 85% of fish species is‘at risk’

Opportunities and risks… … recognized in international food industry

- 90%: ‘social and environmental risks for profitability’

- 60%: ‘negative impact on pricing’


Three commodities, three strategies


Soy: Forecasting based on historic values


Soy: Growth, growth and growth


Soy: Possible solutions: how, where or not….


Possible solutions for soy

Examples of strategic directions and possible solutions- Optimize the supply chain: Support programs that strive to comply with local

legislation- Control the supply chain: Increase yield of small-scale farmers in India- Control the supply chain: Certify responsible soy- Innovation: Substitute soy with seaweed


Sugar cane: Forecasting based on historic values


Sugar cane: Growth, growth and growth


Sugar cane: Possible solutions: how, where or not….


Possible solutions for sugar

Stevia - In 2012/2013 featured in 30% of

global chocolate launches - Vegetable, 300 time more sweet- Areable land -80%

- CO2 emissions -72%

- Water -96%

Increased utilization of sugar cane- More sustainable than sugar cane- Increase competitive strength- Approach Veldleeuwerik results in more EUR/ha, supply chain intergration, nature


Possible solutions for fish oil

How to make the current fish oil catch more sustainable- 4% of fish oil use is MSC certified- Fish oil from fish waste directly

after catch

Substitute fish oil with alternatives- Rapesead oil commonly used alternative- Algae oil and insect oil offer opportunities

• Scaleable?• Low impact on biodiversity• Omega 3


How could your company act tomorrow?

What are the risks of security of supply of these commodities?

2

3Which steps can I take to mitigate these risks?

Which commodities am I dependent on?1

4How will I realise these steps that are both inside and outside my scope as a company?

Four fundamental questions for businesses to develop and implement strategic solutions:

Response

Supplierdevelopment

Reg

ain

co

ntr

ol

of

su

pp

ly c

hai

n

Integrate backwards

Invest in land / assets

Inn

ov

ate

Develop niche markets

Alternative supplier partnership models

Longer term supplier contracts

Get

mo

re

mil

eag

e fr

om

su

pp

ly c

hai

n

Diversify supplier network

Substitute / develop new materials

Intervention on early stages of value chain

Dit document is uitsluitend bestemd voor u en mag zonder onze toestemming niet worden verspreid aan andere partijen. KPMG Advisory N.V. (“KPMG”) garandeert of verklaart niet dat de informatie in het document geschikt is voor de doelstellingen van anderen dan de geadresseerde.

Het is niet de verantwoordelijkheid van KPMG om informatie te verstrekken die op enig moment na de datum van het document bekend is geworden. KPMG aanvaardt geen aansprakelijkheid jegens anderen dan de geadresseerde van het rapport.

© 2014 KPMG Advisory N.V., ingeschreven bij het handelsregister in Nederland onder nummer 33263682, is een dochtermaatschappij van KPMG Europe LLP en lid van het KPMG-netwerk van zelfstandige ondernemingen die verbonden zijn aan KPMG International Cooperative (‘KPMG International’), een Zwitserse entiteit. Alle rechten voorbehouden. Gedrukt in Nederland. De naam KPMG, het logo en ‘cutting through complexity’ zijn geregistreerde merken van KPMG International

Jerwin Tholen

E: [email protected]

T: 06 51367334

ksteinbusch

Ik kan de 2014 engelse disclaimer voor Advisory nergens vinden.



Incubator sessions


What’s next?Master class 3 ‘The first steps of natural capital accounting’

On the 9th of September at the Ministery of Economic Affairs


Thank you!