This document discusses the need for locally owned sustainability standards in Asia to drive sustainable transitions in major markets like China, India, and Indonesia. It notes that consumers in these rapidly growing economies appear to care more about sustainability than Western consumers. The document then outlines 4 key issues: 1) readiness of Asian markets for sustainability, 2) need for local standards, 3) relationship to international standards, and 4) reasons for engagement from global North. It provides survey data showing Indian consumer support for certified products and willingness to pay more. The document argues that local standards can help fill gaps and be more appropriate for cultural and business contexts in Asia's large agricultural markets. International standards could coexist with and help drive innovation in local standards.

1. Nationally Driven Sustainability
International Supply Chain Management Congress
Amsterdam, 29 Nov, 2012
Shatadru Chattopadhayay

2. 4 issues covered
1. Whether Asian markets ready for sustainable
transition?
2. Why do we need locally owned sustainability standards
in Asia?
3. How do they relate to international sustainability
standards?
4. Why should global North should engage with this
agenda?

3. Consumers in Rapid Growth Economies (RGEs)
appear to care more than their Western colleagues
China, India, Indonesia, UAE, Brazil
USA, Western Europe
Source - Edelman goodpurpose® 2012

4. BBMG, GlobeScan and SustainAbility, November 2012

5. Sustainability spectrum
BBMG, GlobeScan and SustainAbility, November 2012

6. Our Survey in Two Major Indian Cities
Show-> 50% Indian Consumers
considers certified tea & Coffee is
IMPORTANT
not important at all
not so important
highly important
indifferent
important

7. And 45% are willing to pay 5 to 10 Percent extra for
such product
Yes
Not w illing to pay e
76-100%
51-75%
26-50%
11-25%
No
5-10%
<5%

8. Other examples

9. Other examples

10. New Sustainable Outlets are coming up in India

11. The need for locally owned standards
1. The top down-fit all approach of global standards is
resisted by the stakeholders even when there is a export
market. Cultural issues come on the way.
2. Governments are getting active in the field of
sustainability by developing voluntary systems
themselves. (E.G. ISPO from Indonesia, China Social
Compliance 9000, IS 16001 from India).
3. India, China and Brazil are the biggest producer and
consumer of most agro-commodities. Yet, most
international standards do not operate in these markets.
4. International standards are costly to implement in a low
margin business model of Asia.
5. Global businesses are increasingly seeking to provide
sustainable products to all customers in all markets.

12. One size doesn’t fit all

13. Tea Markets In Million Kilograms
91.83 20.72
191.1
208
292.24
162.5
410.35
Partially
Certified
West Europe
East Europe
America
West Asia
Asia other than West
North Africa
Africa other than north
Oceania
Even if the total tea markets of West Europe
and Americas are Certified-90% of Tea Would
Still Remain Unsustainable
Not Certified
2219.02

14. Local standards v/s International-Common Concerns
• Start with what is local and what is international?
• Local standards reduces the sustainability criteria
and have less credibility?
• The local standards could be base line or “stepping
stone” standards to international ones?
• More standards/codes are bad as it increases the
cost and confuses stakeholders?
• The governance of local standards are weak?
• More……..?

15. International and Local standards-how to relate
• Standards are tools for sustainable change. The
challenges are so vast that all can co-exist.
• The domestic standards will be mostly targetting
high-hanging fruits-potential clients for international
standards.
• May fuel innovation and lead to more efficient
systems

16. A potential learning from aviation industry?

17. Why should global North engage?
• The agro-commodities like
tea, coffee, sugarcane, cotton, fruits, vegetables, livestock, soy
, palm oil which has a huge impact on land and water are
mostly produced and consumed in emerging markets of
India, China and Brazil.
• A level playing field for businesses from North to participate in
outperforming markets of Asia.
• Sustainable agriculture will act as a future bridge between
needs of feeding the 9 billion population in 2050 and a
increasing global requirement of feed, fiber and fuel.

18. Conclusion
• Major Asian markets are ready for sustainable
transition
• Large scale transformation of Asian agriculture sector
covering more than half of world population requires
local solutions
• Existing international standards could co-exist along
with the standards emerging from new markets.
• There is one planet and there is one agenda!

19. www.solidaridadnetwork.org
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