Jan Sass Hvyass, Director of Procurement at Beumer Group - Organising a globa...
142 engaging business for conservation presentations
1. Objective
• Exchange experience on developing a strategy
for business engagement
• Provide practical examples of how business
Engaging Business for and conservation communities are engaging to
deliver conservation outcomes
Conservation • Explain how to develop partnerships that are
mutually beneficial and enhance brand value of
both organizations
• How to communicate and train business on
Conservation Campus #142 ecosystems
11 September 2012
Agenda
1. Welcome and introduction
2. Risk and Opportunities of engaging business
Engaging Business for
3. Business Engagement in p
g g practice Co se at o
Conservation: Risks a d
s s and
4. Create sustainable brand value for business
Opportunities
Gerard Bos, Head – Global Business
5. Training business on ecosystems and Biodiversity Programme, IUCN
September 2012
Overview Matching goals
• Matching conservation Key factors for success:
and business goals Understanding your added value
• Developing a strategy • Organizational assets
for business • Value Proposition
engagement
g g • What you can do
• Selecting a business
Understanding the business
partner
• Business impacts and dependencies
• Formalizing the • Opportunities for business in conservation
engagement • What the business can do
Identify shared and added value
Figure 1 – Steps in IUCN Operational
Guidelines for Private Sector Engagement
1
2. Developing a strategy Developing a strategy
Why a Why a Strategy? To ensure that engagements are a
means to a wider conservation goal. To protect your
Strategy? reputation. To ensure effective use of (generally
scarce) resources.
How to How to develop a Strategy? It depends on your type
of organization: If membership-based, you will need to
develop a
p engage in consultations with your members Even if
members.
Strategy? not, involve those who will work with business as well
as business entities. Ensure that the Strategy is in line,
builds on and supports your main conservation
programme.
How to use a How to use a Strategy? It should be your compass
Strategy? in selecting projects and partners. Not a replacement
for detailed project concepts or workplans.
IUCN Strategy Key elements of a strategy
• IUCN’s first strategy was issued in 2004 Clear aims, objectives
• The IUCN Council requested a new Strategy in 2011 The IUCN Business Engagement strategy aims to encourage
• A first concept was developed with members of the transformational and demonstrable changes at the company
Council and used to request input from IUCN and sectoral level in how biodiversity is valued and managed
Members, Councillors and partners (mostly by businesses in order to conserve and restore biodiversity
businesses) and to ensure that biodiversity benefits are shared equitably.
• With the input received a small design team drafted
received, Purpose:
version 1 which was subsequently revised by the To provide IUCN with a coherent
Council and discussed during a workshop framework for influencing the
• The final Strategy was approved by Council in April business sector, a clear reference
2012 point as to the level of ambition
expected from the business
• The strategy builds on IUCN quadrennial programme engagements, and a consistent
as well as on past experiences working with business approach to the management of
reputational risks and quality
assurance.
Key elements of a strategy Key elements of a strategy
Clear implementation strategy
Well defined theory of change
• Engage with a few selected
IUCN’s BES has three interconnected entry-points, all
leaders in priority sectors to
linked to one central objective: business practices at the
develop or adapt, field test and
landscape and seascape level are transformed to generate
pilot tools and approaches.
benefits for biodiversity and natural resource-dependent
livelihoods. • Building on best practices,
work with a group of companies
Entry Point 1: Triggering changes within selected sectors and
on the ground industry associations to develop,
adopt and promote voluntary
Entry Point 2: Leveraging supply standards.
chains • Directly engage with public
policy and the financial
Entry Point 3: Influencing public & sector to promote a
financial policies progressive and level playing
field in terms of regulations and
finance.
2
3. Selecting a business partner Due Diligence
• Developing an engagement concept (what are • A step to enable “informed decisions” on how to
the conservation challenges that can be progress discussions with business
addressed through an engagement with • Allows a better understanding of the business
business?) and its operations
• Assessing potential business partners • Identifies any past, present, and predictable
o Is the company well placed to help deliver the future sources of risk to the organization arising
concept? Are they committed to a step change? from an engagement with the business
o Are there shared goals and opportunities to add • Helps identify opportunities of engaging and
value?
potential areas of joint work
• Performing a due diligence to identify possible
sources of risk & opportunities
• Preparing a risk management strategy
Which company
should we work with?
What should be included? Risk and Opportunity Matrix
1. Scope
2. Company description
3. Company impact on biodiversity and ecosystem
services
4. Social and environmental policies, standards and
public commitments
5. Environmental and social performance
6. Company reputation
7. Initial assessment of the company’s commitment to
corporate responsibility
The position of the red dot will move
8. Overview of potential risks on answering the questions according
9. Indications of points that could be further to the risk and opportunities of
investigated Results in the tables above are engaging a given company
generated by answering the risk
and opportunity questions
Formalizing the engagement A good contract includes…
• Develop a project concept which includes: • SMART (Specific, Measurable, Achievable,
• Aim and objectives Realistic and Time-bound) results
• Key areas of cooperation • Roles and responsibilities for realizing results
• Expected outcomes and how they will contribute to • Capacity and resource requirements on both
your conservation goals sides
• Formalize the engagement through an • Indicators for monitoring and measuring
appropriate mechanism (
i t h i (e.g. M
Memorandum of
d f performance,
performance progress and results
Understanding, Contract, Agreement, etc.) • A clause that allows public communication
regarding any issues which may or may not
• Ensure transparent and regular communication
involve the business entity
with your constituency during entire process
• A process for addressing breach of contract
• A termination clause
How do we • A mechanism for raising grievances from third
formalize parties
our engagement?
• An independent final evaluation
3
4. Top Tips Resources for more information
• Be transparent
• Work with the business from the beginning and IUCN Business engagement Strategy
throughout the project (don’t treat them like http://data.iucn.org/dbtw-wpd/edocs/Rep-
donors!) 2012-001.pdf
• Conduct a situation analysis – what are the
impacts and dependencies? Assess the Operational Guidelines for Private Sector
“additionality”?
additionality ? Engagement
• Assess and manage your risks http://cmsdata.iucn.org/downloads/ps_20g
• Aim at establishing true partnerships – ensure
uidelines.pdf
that there are mutual benefits from working
together Global Business and Biodiversity
• Celebrate success Programme
• Communicate throughout http://www.iucn.org/business
Thank you!
Kamsa hamnida!
감사합니다
www.iucn.org/congress
4
5. To cover today
• Strategic rationale for Ecolaboration™
• AAA: our unique approach to sourcing
high quality coffee and cocoa
ECOLABORATION™ • Club member engagement and
Review 2012 -
outlook 2013 stakeholder management
Tuesday 11 September 2012
• Outlook 2013 and beyond
P2
Ecolaboration™: Strategic rationale Ecolaboration™: part of the Nestle CSV
“Nespresso’s innovative program is not
driven by charity but by creating value”
• Integrating Nestle CSV approach into the Michael Porter
Nespresso model Professor of Business Strategy
Harvard Business school
• Securing access to and smart use of
resources
• Adding value to the Nespresso brand
“A good example of such new
procurement thinking can be found at Michael Porter at the Third Nespresso AAA
Nespresso, one of Nestlé’s fastest Sustainable Quality™ Forum
growing divisions”
P3 P4
Ecolaboration™: securing access to and Ecolaboration™: adding value to the
smart use of resources Nespresso brand
Using
Ecolaboration™ to
61% Vs 2013 commitment
of 80%
protect the
company
-16% Vs 2013 commitment
of -20% reputation among
Securing
key opinion reputation
leaders,
leaders activists
and media
Building
trust
Using
Ecolaboration™ to
convince club
74% Vs 2013 commitment
of 75% members and
prospects
P5 P6
1
6. There are 3 main challenges in the specialty
To cover today
coffee sector…
… facing Nespresso in particular
• Strategic rationale for Ecolaboration™
• AAA: our unique approach to sourcing 1. Long term supply of quality
high quality coffee and cocoa 2. The sustainability challenge
• Club member engagement and 3. Profitability of smallholders
stakeholder management
• Outlook 2013 and beyond
P7 P8
The AAA Sustainable Quality™ Program The AAA Program: a pragmatic approach to
responds to these challenges sustainable quality
… in a pragmatic way,
with the farmers at the center
P9 P10
The AAA Program: a pragmatic approach to The AAA Program: a pragmatic approach to
sustainable quality sustainable quality
P11 P12
2
7. In ten years the program has expanded to On cocoa, the program started in 2009 with
50’000 farmers in 7 countries the objective of all clusters AAA in 2013
Tanzania ( 2013)
“Grands Crus / Variations”
50’000 S-A •Sensory : Round and mild cocoa
50’000 farms
Today 3’500 Tasq •Coops of smallholders TBD
7 countries •36 t /year
(Q2 2012) 190 agronomists
20 clusters •Trade partner : TBD
Mexico 200’000 Hectares Indonesia by end 2012
1 cluster Nicaragua
2 176 farms 2 clusters
2’176 farms 2 l t “Grands Crus only”
Grands Crus only
Guatemala 94 farms Brazil –Bahia since 2009 •Sensory : Strong cocoa and bitter
2 clusters Costa Rica India “Grands Crus only” with gingerbread aromatics
1’344 farms 4 clusters 2 clusters
3’361 farms 64 farms •1 plantation 1’400 ha
• Sensory : Strong cocoa and bitter,
Colombia •12t /year
4 clusters Ethiopia with a complex dried fruit and
1 cluster (forming) refreshing herbal aromatics • Trade partner : Armajaro
37’994 farms
2’200 farms • 1 plantation 400 ha Madagascar since 2011
Brazil
6 clusters • 12t /year “Grands Crus / Variation”
1’798 farms • Performance RA: DEFICIENT(68% • Sensory : Strong acidity, balanced
70’000 S-A TASQ incl.5 critical criteria) => between cocoa and fruity (lemony)
certification level by 2015 • 4 coops => 120 s/h
End 2013 70’000 farms 7’000 Tasq • Trade partner : EFICO • 9t /year
• Performance RA : Deficient (25%
250 agronomists TASQ performance incl.7 critical
criteria )
Trade partner : TOUTON
P13 P14
In 2012, Nespresso will source 66% of its
Results: Quality up and rejection down
coffee from AAA and 18% AAA RA
A large disparity between Colombia and
other countries
MexicoIndia
3% 3%
Africa
10%
Brazil
35%
Central
America
21%
Colombia
28%
Coffee Volume distribution
Number of AAA Farms
P15 P16
Results: high rate of farmer satisfaction Results: progress on sustainable agriculture
Colombian grower satisfaction with % of coffee sold to Nespresso, % farms complying with specific
sustainability initiatives (% satisfied) among AAA growers environmental practices
Nespresso Corporate web site
Percent AAA farmers who return sell their Environmental performance of AAA
coffee to Nespresso farms vs. non AAA (out of 100)
P17 P18
3
8. Results: supporting innovation pipeline Results: supporting innovation pipeline
P19 P20
We are progressively building credibility with
To cover today
stakeholders
• Strategic rationale for Ecolaboration™
• AAA: our unique approach to sourcing
high quality coffee and cocoa
• Stakeholder management and Club
member engagement
• Outlook 2013 and beyond
P21 AAA farmers awarded at the RAP22
gala
The Alucycle™ commitment is building AAA commitment secured reputation during
Nespresso credibility on sustainability the Solidar attack
P23 P24
4
9. CM awareness of Ecolaboration™ initiatives
We are progressively building club member
drive expertise perception and Net Promoter
awareness
Score
Yes and I
Total Aware of the
know
Current Ecolaboration
exactly
Members programm
what it is
Awareness 2009 vs. 2011
Base 13299 4277 961
Recycling initiative
29% 79% +50pts
ST NPS score 54% 62% 64%
AAA program 7 9% 7% 8%
13% 42% +29pts
8 19% 17% 14%
Ecolaboration™ 9 22% 22% 21%
9% 35% +26pts
You would certainly recommend Nespresso 41% 46% 51%
P25 P26
TO COVER TODAY Outlook
• Strategic rationale for Ecolaboration™
• 2013 focus on AAA 10th anniversary to
• AAA: our unique approach to sourcing further build reputation and trust
high quality coffee and cocoa
• Achievement of Ecolaboration target
• Stakeholder management and Club for carbon
member engagement
• Definition of next phase strategy
• Outlook 2013 and beyond
P27 P28
Using AAA 10th anniversary to engage
stakeholders
NMag Fifth AAA Media
Forum Trip field
HBR Academic
Santander
Symposium MBA
challenge NMag
June July Sep
Dec
Securing
reputation TEN YEARS OF NESPRESSO AAA
Building
March July Dec
trust
Social media
campaign Social media
campaign
Photo
Farmers in exhibition
Europe Book
P29
5
11. Promote Support
sustainable credible
forest carbon
management markets
8 9
BUILDING CAPACITY TO ENABLE REDD+
WHAT CAN NGOS BRING TO
Strengthen BUSINESSES COMMITTED TO
international CLIMATE CHANGE ACTION WITHIN
REDD+
framework THEIR SUPPLY CHAINS?
10 11
NGO INFLECTION POINTS BUILDING COMPANY CLIMATE POLICIES
POLICY
• Map out a climate policy
COMMUNICATE
COMMUNICATE POLICY
• Identify climate risks in supply chain
VERIFY ASSESS • Recommend emission reductions targets
• Advocate for quality carbon offsets
VERIFY ASSESSMENT IMPLEMENT
IMPLEMENT
12 13
2
12. ASSESSING BASELINE CONDITIONS IMPLEMENTING ACTIONS
ASSESS IMPLEMENT
POLICY ASSESS
• Life Cycle Assessment • Technical assistance
• Carbon Footprinting • Promote best practice
COMMUNICATE IMPLEMENT • Needs for technical assistance POLICY VERIFY • Carbon project development
• Feasibility of mitigation/adaptation • Link investors to projects
COMMUNICATE
VERIFY
14 15
VERIFY, MONITOR, REPORT VERIFY, MONITOR, REPORT
VERIFY COMMUNI‐CATE
IMPLEMENT
VERIFY
• Monitor and evaluate progress • Press and social media
ASSESS COMMUNICATE • Impact and research • Publications
IMPLEMENT POLICY
• Ensure conformance to verification • International networks
POLICY
ASSESS
16 17
jhayward@ra.org
www.rainforest-alliance.org
The Rainforest Alliance works to conserve biodiversity and ensure sustainable livelihoods
by transforming land-use practices, business practices and consumer behavior.
3
13. Grey area…
Rigour Practicality
● harsh, but just ● usefulness ‐ the quality
● severe or cruel circum‐ of being of practical use
stance ● functionality ‐ capable of
Scientific Rigour vs. Practicality ● strictness in judgment or serving a purpose well
conduct ● viability ‐ capable of
● Mathematics, Philosophy,
, p y, being done in a practical
Logic: logical validity; way
accuracy ● sensibleness ‐ the quality
Conservation Campus 142, WCC, Jeju of showing good sense or
practical judgment
11 Sep 2012 Robustness
● the characteristic of being ● realism, pragmatism ‐
strong enough to the attribute of
withstand intellectual accepting the facts of life
Christoph Imboden
challenge
WCC, Jeju, Sep 2012 ChI / Slide 2
The law of the diminishing return Engaging with business on biodiversity
Scientific accuracy 1. Convince that biodiversity has something to do with
them
100%
2. Motivate them that they should do something
80% – not how much harm they cause, but…
– what they can positively do for biodiversity
60% 3. Steer them towards “quick wins”
40%
4. Show the benefits of a systematic and integrated
approach
20% 5. Demonstrate that implementation is affordable and that
simple methods can lead to meaningful outcomes
6. Team up with them to scale up: influencing industry
Time invested
standards and regulatory meachanisms
WCC, Jeju, Sep 2012 ChI / Slide 3 WCC, Jeju, Sep 2012 ChI / Slide 4
Biodiversity Management System ‐ BMS Biodiversity inventories
Biodiversity Policy Principles
Abundance of vertebrates & higher
plants
Research
scientists
Planning cycle Operational cycle List of all vertebrates & higher plants
throughout all seasons
Conservation
Impact
Opportunity Biodiversity Action: List of all vertebrates & higher plants
List of all vertebrates & higher plants scientists
Study
Study Feasibility EMP, BAP, Rehabilitation
Study List of sp. characteristic for habitats
Biodiversity Inventories Biodiversity Monitoring Presence of threatened species Company Conservation
pragmatist
Habitat maps
What are the How can we How can we seize bio-
biodiversity risks? avoid them? diversity opportunities? Few sites All sites
WCC, Jeju, Sep 2012 ChI / Slide 5 WCC, Jeju, Sep 2012 ChI / Slide 6
1
14. Holcim boundary conditions Biodiversity importance categories
1 Occurrence on site or within 5km or with relevant ecological
● 520 sites ‐ worldwide distribution (>70 countries) connections to:
● Very different types of quarries – globally threatened sp. (IUCN Red List)
– overlapping with / adjacent to internationally recognised PA
– from sand to rock, limestone to clay – Globally outstanding ecosystem / habitat
● Size ranging from 5 1000 ha 2 Occurrence on site or within 5km or with relevant ecological
● Longevity ranging from <10 years to >100 years connection to:
– nationally threatened rare sp
nationally threatened, rare sp.
● Surrounding conditions ranging from monocultures to – nationally protected (recognised) area, reserve etc
rainforest, industrial to urban areas – nationally important ecosystem / habitat
● Variety of jurisdictions and regulations 3 Site:
– in landscape with diverse, natural ecosystems
– in modified landscape with potential for biodiversity
enhancement (biodiversity island)
– with significant local value of the natural environment
4 Site in heavily modified, intensely managed landscape
WCC, Jeju, Sep 2012 ChI / Slide 7 WCC, Jeju, Sep 2012 ChI / Slide 8
Biodiversity Risk Matrix Monitoring and reporting system
Risk to biodiversity value of site and/or surrounding area
Key requirements
Expected
Impact
A B C D ● Meaningful, but straightforward to measure
Biodiversity Likely impact; Likely impact; Possible imp.; Unlikely ● Sensitive to changes in management and/or protection
importance mitigation not mitigation mitigation impact
possible possible recommended
● Measurable by means of a simple methodology
● Largely assessable by non‐experts (Holcim staff)
Largely assessable by non experts (Holcim staff)
1 Critical Significant Medium Low
● To be expressed by standardised value
2 Critical Significant Medium Low ● Must fit into existing environmental reporting
3 Significant Medium Low Low ● Allowing aggregation on national and global levels
4 Low Low Low Low
WCC, Jeju, Sep 2012 ChI / Slide 9 WCC, Jeju, Sep 2012 ChI / Slide 10
Dilemmas and trade‐offs BIRS – principal idea
ESIA
INVENTORY Local experts
Practicality, simplicity Scientific rigour 10‐year repeats
Sound science
(cause/effect)
Desirable
Expensive Monitoring &
Habitat extent Annual Holcim staff
Affordable ALL
Scientific rigour
Indicator SITES
Minimum standard
r
Habitat condition Annual Holcim staff
Expectations Expectations
local communities conservation community
Minimum standard
Habitat uniqueness 5‐10 yrs Local expert
Needs/wishes
Legal requirements Sites with
of the company
special Species/habitats
biodiversity Annual Local experts
Limited meaning of special concern
management
Very involved, Practicality Simple methods,
BIODIVERSITY
requiring expertise to be done by
knowledge non-experts CONDITION INDEX
WCC, Jeju, Sep 2012 ChI / Slide 11 WCC, Jeju, Sep 2012 ChI / Slide 12
2
15. Habitat condition Pictorial guides for assessing habitat condition
2 out of 10‐15 questions
● Condition assessment
Are there other non‐woody flowering species consisting of…
– Two persons (non‐experts) to walk independently for 30‐60 only one species? two species? three species? more than 3 species?
minutes through each of the habitats.
1 2 3 4
– Same season and time of day, similar weather condition
– 10‐15 questions about each habitat type to be answered on Score
a scale of 1‐4 (implying poor to good condition) on the
a scale of 1‐4 (implying poor to good condition) on the
basis of visual guidance notes.
Are the shrubs and/or trees growing above the height of the grasslayer …
– 2‐3 fixed point photo for reference
virtually across the abundantly found sparsely spread occurring as a very few
● Condition of each habitat: mean of all values whole site? across the site? across the site? isolated individuals?
1 2 3 4
WCC, Jeju, Sep 2012 ChI / Slide 13 WCC, Jeju, Sep 2012 ChI / Slide 14
Indicative wetlands questions Aggregation of KPIs
Adjustments / weightings
1 2 3 4
for:
How many different wetland 1 2 3 > 3
• Relative biodiversity
zones can you distinguish? Global Biodiversity KPI
importance of country
What is the water colour? Intense Distinct Light No colour
What is the turbidity of the Very cloudy Cloudy Slightly Clear
water? cloudy Country A Country B • Relative biodiversity
National Biodiversity KPI
National Biodiversity KPI KPI importance of region
How do the floating plants Dead & More than Less than All healthy within a country
appear? decaying half brown half brown
& dying & dying
• Site heterogeneity,
Do you see any invasive Dense Many A few None Site 2 Site 1 Biodiversity Index Site 3 diversity of habitats
wetland plants? KPI KPI KPI
• Relative biodiversity
Do you see any dragonflies? None A few; one Some; > 1 Many; value of habitat
species species several sp.
None Some; 1 sp. Many; 1 sp. Many; se‐
Habitat Habitat Habitat
Are waterbirds present?
veral sp. value A value B value C
Some; >1sp
WCC, Jeju, Sep 2012 ChI / Slide 15 WCC, Jeju, Sep 2012 ChI / Slide 16
Lessons…
1. Better to have some basic standard information on all
sites than to have detailed information on a few sites
only and none at all from all others.
2. Keep engaged with partner for continuing reality /
practicality check.
3. Involve partner as much as possible in development of
ideas.
WCC, Jeju, Sep 2012 ChI / Slide 17
3
21. Business Ecosystems
Training
Learn how to train business on Introducing
ecosystems Business Ecosystems Training (BET)
program
Conservation Campus
11 Sept 2012, 09:00-13:00
The business case for training Rationale for developing BET?
72% of CEOs see education as the global
development issue most critical to address for Business both impacts and Business
the future success of their business depends on ecosystems
Depends Impacts
However, issues tend to be
86% of CEOs think that companies should invest in
poorly understood
enhanced training of managers to integrate
sustainability into strategy and operations
t i bilit i t t t d ti N d t fill k
Need to knowledge gaps
l d
However, only 60% of them are implementing Ecosystems
this
Source: United Nations Global Compact CEO Survey 2010 (based on 766 completed responses)
3 4
What is BET? Who is it for?
Business audience
A comprehensive capacity building program that aims
Different levels of management &
to equip business with the skills it needs to better
seniority
understand, measure, manage and mitigate
ecosystem impacts and dependencies Wide range of departments:
from SD to procurement to finance
Leverages the wealth of existing WBCSD materials,
methodologies and tools, also including other
resources Any professional who needs to
manage its company’s risks and
Open-source opportunities
5 6
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