Dole Sustainability Analysis
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Dole Sustainability Analysis Dole Sustainability Analysis Presentation Transcript

  • Global Business Strategy Project Stephanie Chapman🔴Estefanie Policy & StrategyLopez🔴Derek Mitchell🔴Chapman Atlanta Module Parker Summer 2012
  • Global Business Strategy Project SUSTAINABILITY
  • Environmental Demand• Pollutes air, water, and land• Produced on large scale – Up to 100 square kilometer plantation – Deforestation• Soil quickly depleted – No natural leaf litter – More land expansion – Soil erosion – Runoff causes frequent flooding
  • Monoculture• 300 species of banana – Cavendish is only grown for international trade• All bananas are genetically identical• Increases susceptibility to single pest, fungi or disease• Increases pesticide use• 30 kilograms of pesticides per hectare
  • Pesticides• Bananas are judged on aesthetic standards• 400 types of agrochemicals – More chemicals used than any other crop except cotton• Insects become resistant – Stronger, more toxic pesticides are needed• Affects mammals, birds, and plants – Biodiversity disappears – Destroys pioneer plant species
  • Waste• Banana industry produces most waste• Two tons of waster per ton of bananas• Types of wastes – Plastic bags – Containers – Banana trees – 30 to 40 percent discarded – Waste is contaminated with pesticides
  • Dole Sustainability• Water management• Carbon footprint• Soil conservation• Packaging
  • Global Business Strategy Project
  • Dole Latin American Operations
  • Dole Latin American Operations Certified Sustainable
  • Latin America-Caribbean (LAC) Urbanization• 28% increase in urban population between 2007-2025 (127 million people)• Agriculture share of GPD declines as manufacturing increases – Major city share of national income (World Bank) • 55% for low income countries • 73% for middle income countries • 85% for high income countries• Over 78% of LAC population lived in urban areas as of 2007 – More highly urbanized than Asia, Europe or Africa
  • Latin America-Caribbean (LAC) Urbanization• 67 cities with populations over 1 million – 46% of population living in these cities• 4 of world’s 19 mega cities (10 million inhabitants)
  • LAC Urbanization Breakdown• South America: 81.8% – Projected (2015:85.2%) (2025%:86.4%)• Central America: 71.7% – Projected (2015:73.25) (2025:76.2%)• Caribbean 64.3% – Projected (2015:69.3%) (2025:73.6%)• Costa Rica 64.3%• Ecuador 66.9%• Honduras 48.8%
  • Urbanization Trends• Rural to urban migration for economic opportunities reason for early urbanization• Rural migrants now more educated including a disproportionate share of women• Migration trends have shifted to more intra-metropolitan migration
  • Urbanization Effects• Fosters aggregate economic growth – Made little impact on urban poverty – Increased urban poor population – Decreased rural poor population• Majority of poor in LAC in urban areas (2002) – 59% living on less than$1 day – 65% living on less than $2 day• Relocation of poverty – Migrant concentration in outer edges of cities, inner suburbs and center cities – Weak migrant integration into health and education systems
  • Dole Rural Incentives• Workers – Health & safety – Training programs – Wages, working hours & social benefits – Labor organizations• Community – Medical programs – Housing & community programs – Drinking water – Education programs
  • Dole Rural Incentives• Costa Rica – Mobile medical units – Bananito - Costa Rican farm providing nurturing work environment and benefits • Ecuador – Health & medical programs – Paved road projects – HIV/AIDS prevention programs• Honduras – Hospital Vicente d’Antoni
  • Urbanization MatrixWhere we produce Where we sell Banana is convenience food Labor shortage Goes along with urban lifestyle Need to provide Migratory people will recognize community their rural foodstuffs infrastructure Urbanization corollary with natural Products Supply Chain Generation gaps occur More centralized where people have enjoyed the rural banana distribution People will be more accepting of cavendish variety
  • Dole Rural Incentive Project Map
  • o oo
  • o o o Mobile Medical Units BananitoHospital Vincente dAntoniHIV/AIDS Prevention Programs Paved Road Projects
  • Global Business Strategy Project Planet People Profit SUSTAINABILITY MEASURES
  • Sustainability Measures• Dole Sustainability Measures• Sustainability Benchmarking: Indicator use
  • CertificationsCarbon footprint assessmentWater assessmentSocial IndicatorsDOLE SUSTAINABILITYMEASURES
  • Certifications ISO 14001 Global G.A.P.• Standard for environmental • Standard designed to management systems reassure consumers of• Areas of focus environmental impact – Waste management minimizing production – Practices to avoid adverse techniques changes in air, water and land • Reducing chemical inputs quality • Responsible approach to• All banana farms certified worker health & safety (except Sri Lanka, • Certification adopted to Vietnam, Malaysia and satisfy European Indonesia) customer demands
  • Certifications SA 8000 Organics• Monitors and evaluates the social • Organic operations certified accountability of companies• Areas of focus by accredited independent – Child labor agencies – Forced labor – Health and safety • Accrediting agencies – Freedom of association – USDA – Discrimination – Disciplinary practices – National Organic Program – Working hours – European Union – Remuneration – Effective management implementation • Areas of focus• Dole is the first agricultural – Use of environmentally company to receive certification sensitive and natural remedies instead of pesticides
  • Certifications Rainforest Alliance FAIRTRADE• Conserve biodiversity and • Movement seeking to improve ensure sustainable livelihoods trade terms for farmers• Areas of focus – Reforming land-use practices, • Ensures market prices covers business practices and consumer costs of sustainable practices, behavior• Three pillars acceptable working conditions – Social equity and longer trade relationships – Environment protection – Economic viability • Consumers pay premium for• Consists of ISO 140001 FAIRTRADE marked products standards that is reinvested into – Certification trademarked seal economic and social appeals to European and American consumers development for producers
  • Carbon Footprint Assessment• Calculated carbon footprint of bananas produced in Costa Rica and distributed in Germany• Areas of focus – Cradle to grate approach • Raw materials to retail shelf – Defines sources of greenhouse gas during various supply chain stages• Results – The carbon footprint of Dole bananas amounts to 1124 kg CO2e per ton of bananas. – The majority of emissions are related to overseas transportation. – Emissions related to fertilizer use have a significant impact on the total carbon footprint of Dole bananas.
  • Water Assessment• Conducted water footprint study on Costa Rica and Honduras facilities including independent grower’s farm Dole purchases from• Water footprint measures human demand of freshwater – Measures water consumption by source and polluted volumes• Areas of focus – Analyze impact of different watering methods • Costa Rica-rain-fed crops • Honduras-irrigation systems – Analyze impact of packing facilities• Results – The water footprint of handling bananas and pineapples (packing facility phase) is much smaller than the water footprint of growing them (farm phase). – In Costa Rica, the blue water footprint of both pineapples and bananas is zero due to the fact that farmers feed their crops via rain rather than irrigation systems. – The water footprint of growing pineapples is lower than that of bananas. – Growing bananas (blue and green water footprint) on Dole’s banana farm (Guanacaste) versus growing them on the individual grower’s farm (Casmul) – both in Honduras – yield similar water footprints.
  • Social Indicators• HIV/AIDS prevention program – Developed alliance with CARE and UNIVIDA – Served over 85,000 people through: • Educational talks • Home visits • Counseling • Screening test• Medical records – Dale Medical Record Program – Obtain data on health conditions of Ecuadorian communities to identify prevalent illnesses and ailments• Mobile clinics – 61,000 patients in Ecuador in 2009 – Expanded medical services by 25% in same year
  • Dole Sustainability Model Certifications Carbon Social Dole Footprint Indicators Sustainability Assessment Water Assessment
  • Dole Sustainability Model
  • Sustainability DefinitionEU Sustainable Development Focus25 Sustainability IndicatorsSustainable Community ModelSUSTAINABILITYBENCHMARKING
  • Generic Definition“Sustainable is a community that meets thediverse needs of existing and future residents,their children and other users, contributes to aquality of life and provides opportunity andchoice. They achieve this in ways that makeseffective use on natural resources, enhances theenvironment, promotes social cohesion &inclusion, protects the human rights andstrengths economic prosperity” (Eagan-review UK, 2004)
  • EU Sustainable Development Indicator• Areas of focus – Address issues of Greece, Tunisia, Italy, Palestine & Jordan as pilot for Mediterranean area – Fair trade driven local economy based on olive oil production and exporting to U.S. and EU markets• Sustainable community model indicators – Governance – Economics – Social & cultural – Environmental – Labor capital – Quality – Global partnerships
  • 25 Indicators• Governance • Social and cultural – Provide continuous process of – Ensure adequate local olive oil (banana) participation supply – Establish means for continuous – Reverse rural abandonment monitoring – Promote education and cross – Promote local community communication resiliency – Provide equitable returns• Economics – Respect cultural and legal norms – Optimize benefits to households – Protect heritage and enhance – Optimize direct consumer and community resiliency producer linkage – Promote family identity and wellbeing – Emphasize social and – Special attention to non-native workers environmental business models – Opportunities for women/youth – Invest in local capital*all of these may not apply to Dole and banana industry but I think it’s relevant for the most part
  • 25 Indicators• Environment – Environmentally friendly process – Practice regenerative agriculture – Increase resiliency to hazards• Quality – Establish traceability – Implement best practices• Labor – Fair wage and protection of workers – Non-exploitive relations• Global partnerships – Understanding diversity and commonality among partners – Cross-cultural connection among consumers and producers
  • Sustainable Community Model Governance Social & Quality Cultural Sustainable Community Global Model Economics Partnerships Environmental Labor Capital
  • Global Business Strategy Project Thank you Contact info. Derek Mitchell dlmitchell3001@gmail.com www.linkedin.com/in/dereklmitchell