Idh presentation nyenrode october 31 2013

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Idh presentation nyenrode october 31 2013

  1. 1. Creating a level playing field The need for partnerships and pre-competitive collaboration Dave Boselie
  2. 2. Mainstreaming Sustainable Trade for development impact • Public private partnership facility • Funded by Dutch, Swiss and Danish ODA • Impact on MDGs1,7 and 8 and PSD • 18 commodity chains in 50 countries • 300 companies • 30 international NGOs • 130 million Euro investment capital
  3. 3. Our challenges are unprecedented Global trends by 2050 200 Income 180 percent increase 160 140 120 Consumption 100 80 60 40 Population 20 0 2010 Source: United Nations 2050
  4. 4. The China phenomenon: speed & scale of change Population at start of growth period Years to double GDP per capita1 Britain (1700-1855) 9M 155 US (1820-1873) 10M 53 China (1983-1995) 1,023M 12 India (1989-2006) 822M 17 China doubling of GDP was 12x the speed of Britain during the Industrial Revolution at 100x the scale 1 Time to increase GDP per capita (in PPP terms) from 1,300 to 2,600 USD 400 million lifted out of poverty Source: Angus Maddison, University of Groningen
  5. 5. Future growth will not be in Europe 5% GDP Countries with > growth (2010-2011) Countries where China is a top trading partner Source: UN Comm Trade
  6. 6. per capita impacts acceptable with 7 billion will not be with 9 billion
  7. 7. on a finite planet, should consumers have a choice about sustainable products? or should all choices be sustainable?
  8. 8. Our theory of change: Business has great leverage Top 200 multinationals 15 key commodities 35 most threatened regions
  9. 9. A business case for public-private cooperation
  10. 10. Cooperation is vital for scale
  11. 11. Sustainability Initiative Fruit and Vegetables Program
  12. 12. Sustainability in Fruit and Vegetable sector • Annual Dutch import & trade 10 million tons, with a total value exceeding € 10 billion • Our sustainability intervention focus (hotspots) – Labor conditions, social, migrant workers, unions – Transparency and traceability in the value chain – Water management (secure and improve irrigated production, sustainable water usage) – Other Environmental issues like capacity building on pest control But also…… – Inclusion of smallholders (include farmers in global trade, introduce farming techniques etc.) – Food security for local and international (increase production of high quality products for local and international trade)
  13. 13. Program is built on three work streams Public Statement GSCP Bench marking Producer Support beyond certification • Market transformation agreement • Agreement on definition of sustainability • Convergence and bottom up approach • Equivalence of existing chosen standards • Training of producers to meet sustainability norm • Creation of an ‘enabling environment’ • Inclusion of small holders, sharing best practices
  14. 14. 100% sustainably sourced fresh fruits and vegetables by 2020 1 January 2014 30% 1 January 2015 50% 1 January 2020 100% …of the import volume of fresh fruits and vegetables from Latin America, Asia and Africa is sustainably sourced.
  15. 15. Basket mechanism for standards SA8000 BSCI Compliance Levels ETI GSCP Fairtrade Equivalence benchmarking RFA IMO SIZA C B A A+
  16. 16. A basket of standards and a neutral benchmark the GSCP Reference tools for social & environment » open source » common message » best existing practice » based on existing international standards what how who 16
  17. 17. Control and Evaluation of partners
  18. 18. Producer Support: building a new business Inclusion of small holders in Ethiopia • In partnership with a Dutch company, improve socio-economic and environmental condition of the farming community (3 year project) • Sustainable frontrunner in farming, packing and distribution in close cooperation with 100 to 150 selected small holders (175 ha) • Products to be sold in the local and international markets (total product procurement) • The project approach aims to create a multiplier effect to other small holders in the area and a positive spin off to the local economy
  19. 19. Producer Support: institutional strengthening for national pineapple action plan • Costa Rican government and UNDP • The pineapple industry (producers, farmers, buyers, retail) came together. Working towards a sustainable production of pineapple • Established a national Action Plan for the Responsible Production and Trade of Pineapple • Develop a monitoring system for the Action Plan 2013-2017. IDH and UNDP to facilitate and ensure the National Plan is implemented
  20. 20. Producer Support: institutional strengthening Social and environmental Capacity Building Program for the entire Fruit industry - South Africa • The Fruit industry developed a standard ; endorsed by unions, SA government, national and international retailers as well as being bench marked against GSCP Equivalence tools   Development of knowledge and skills at local levels Build capacity of people: • working on farms • Providing service to farms • Develop capacities and support for continuous improvement of working and living conditions for agricultural employees • Passport to Work!
  21. 21. Covenant members
  22. 22. Discussion points • Control is good – trust is better: are we confident that voluntary standards provide us with the evidence base for impact? • What are the boundaries for company engagement in the communities? (e.g. With regards to nutrition, living versus minimum wages, etc) • Has sustainability become part of your profit and loss account or is it still CSR? • Is the Western concept of Shared Value Creation the appropriate answer to the Chinese and Indian business proposition (e.g. when operating in Africa)?
  23. 23. Contact info: Dave Boselie, PhD Senior Manager Learning & Innovation Nieuwekade 9 3511 RV Utrecht T: +31(0)30 2305 686 M: +31(0)6 48486880 P.O Box 19219 3501 DE Utrecht Interesting link: http://www.imd.org/research-knowledge/globalcenters/sustainability-leadership/practitioner-tool-kits/

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