Craig Chester from Fairtrade Australia presented at the UNAA Sustainable Consumption and Production Seminar held on 27 June 2013 hosted by Russell Kennedy, Melbourne. Held in support of the United Nations 10 Year Framework of Programmes on Sustainable Consumption and Production Patterns, the seminar brought together experts and practitioners from across business, government and civil society to provide a platform for shared learning on integrating sustainable consumption and production measures throughout business operations, relationships and value chains. Guest Speakers and Panelists: - Tim Grant, Director, Life Cycle Strategies - Joshua Bishop, National Manager – Markets, Sustainability and Business Partnerships, WWF Australia - Craig Chester, Operations Manager Australia, Fairtrade Australia and New Zealand - Liam Smith, Director, BehaviourWorks Australia, Monash Sustainability Institute - Clinton Squires, Australian Managing Director, Interface More information available at: http://www.unaavictoria.org.au/education-advocacy/masterclasses/sustainable-consumption-and-production-seminar/

1. Presented by:
Craig Chester – Operations Manager, Fairtrade ANZ

2. Eco-Certification
Eco-efficiency
People better schooled in Eco-efficiency seem to agree on 3 core
practical objectives (The World Business Council for Sustainable
Development)
1. Increasing product or service value
2. Optimizing the use of resources; and
3. Reducing environmental impact

3. Bill Gates in his recent visit stated he would be prepared to pay more
tax, but he’s not going to simply hand it over just because it is the
‘right thing to do’.
Our Corporate Partners feel, rightly or wrongly, that this statement is
relevant to them within production and consumption of their products.
Ideally, governments change laws and legislate so companies are
forced to pay more, and create sustainable access to the economy for
the beneficiaries of trade.
In the absence of this, Eco-labels have evolved to allow companies to
do what many would like to do (pay more sustainable prices for
products) but the conventional market does not naturally require.

4. Eco-certifications should have a limited lifespan
The goal is when all companies or brands themselves are instantly
recognisable to the market as standing for the positive benefits
certifications provide…
…i.e socio economic development and eco-efficiency gladly embraced
by companies to a point that consumers are compelled to reward
them with purchase, and there is a positive return on their investments
along the supply chain

5. Imparting transferable skills better faming, greater
impact on the supply chain through greater yields
and higher quality
Enabling beneficiaries to access the workplace
market access which promotes longer term
employment development
• Creating better equipped, more valuable
contributors to the economy.
• Poverty or unfair market access models
(conventional trade) takes away beneficiaries
ability to add value to the economy – no
investment in training and poor experience

7. Development criteria
- Guaranteed minimum price
- Plus Fixed $/Vol for development projects
- Sourcing plans and pre-finance
- Favours small holder farmers
Producers are partners with a 50% ownership
of the FT General Assembly.
Environmental criteria
- Pesticide use
- Soil and fertilizers
- Water and waste
- Energy (and greenhouse gases)
- Biodiversity (GMOs)
Social criteria
- ILO core conventions
- Employment conditions
- Occupational health and safety
Trading standards
- Traceability
- Contracting & Labelling conditions
All offer…
… a risk management tool!
Fairtrade facilitates
Development
‘Trade instead of Aid’

8. Obligations
 Pesticide Use
 Invest in equipment (Yields)
 No Child Labour
 25% re-investment in
Sustainable Farm methods
 And others…
In Return…
 Personal Use
 Community Infrastructure
Obligations
 Fairtrade Price and Fairtrade Premium $/kg built
into Cost of Goods
Obligations
 Audit & 3rd Party Certification
 Funds for On Ground Support Teams
 IP for Logo
Obligations

9. Eco-labels within a mainstream market sell…
Poverty Alleviation
Human Rights
Choices and Control
Development
Environmental Sustainability
TRUST

11. 14%
49%
Simplify the Purchase: Barrier
removal to make it easy for
the 39% to buy +2 per year
and or give them a reason to
buy/ buy more
Socialise the Purchase: Get the
14% to influence the 39% to buy
+2 per year
Passively
Sustainable
Actively Sustainable Price
Quality
Trust
Drivers: Social Issues
(Carbon, Human Trafficking,
Animal welfare etc.)

12. 23%
37%
44%
47%
0%
10%
20%
30%
40%
50%
2009 2010 2011 2012
Label Recognition
Source: Colmar Brunton Jul 2012
% indicates conversion rate
Converting ‘recognition’ to ‘regular purchase’
Recognition of FT
Ever bought FT
Buy FT nowadays
(once a month or more)
98%
29%
2011
12%
44%
43%
n=1,036
83%
37%
2012
14%
47%
39%

13. Michael J. Hiscox
HARVARD UNIVERSITY
Research focuses on international trade, foreign investment, immigration,
development, government accountability, and private sector initiatives and
standards for addressing social and environmental issues in global supply chains.
• Low incomes, education & gender give more as a propotion of spend
• Consumers becoming increasingly willing to pay more.
• Studies show that fairtrade labels increased sales by as much as 10%
• Strong evidence that ethical products are more than niche.
• "A lot of people thought organic was a niche market but it's continued to
grow…the fairtrade market has grown faster than the organic market ever
grew…I think the trends are very clear that all these things are going to
become more salient and important over time”
*Sources:
Harvard MIT Wholefoods Research Partnership April 2011

14. © Fairtrade 2010
• 1 in 2 people in Australia recognise the Fairtrade mark. Similar
numbers for Rainforest Alliance.
• Demand will remain steady up to a price increase of 8%*
• Applying the Fairtrade label to products will increase sales up to
10.3%*
*Sources:
Harvard MIT Wholefoods Research Partnership April 2011*
Colmar Brunton Jul 2012
Globescan 2011
Rank/26 Country Retail Spend EUR Growth Spend per Capita EUR
1 UK 1,498,207,592 12% $ 24.01
2 USA 1,030,670,695 10% $ 3.29
3 Germany 400,544,747 18% $ 4.88
7 Aust 192,692,075 16% $ 7.23
26 Total 4,916,379,643 12% $ 4.93

16. • Advocate on behalf
of licensees
• Form partnerships
with NGOs to
support Fairtrade
message
• Lobby government to
create legislation that
encourages,
promotes & rewards
companies to
become Fairtrade
• Facilitate the
distribution of
Fairtrade products
through retail
channels
• Relationships with
retailers WoW, Coles,
Aldi and
Independents
• Instore and Point of
Purchase activity
• Research, develop
insights and
reposition Fairtrade
brand to maximise
consumer
engagement in the
AU market
• Align or modify
Global campaigns to
create stronger
presence for
Fairtrade