This webinar unpacks findings from the Traceability and Transparency in Supply Chains report, explore priority action areas for closing key gaps, and showcase collaborative approaches to advancing traceability and transparency.
4. OBJECTIVES OF REPORT
• Provide an updated evidence base on
traceability and transparency in commodity
value chains
• Assess lessons for different stakeholders
and direction of travel
• Scope: Cattle, palm oil, soy, cocoa, rubber,
coffee and wood
5. DRIVERS
Growing number of
pledges & actions – all
require traceability
and transparency to
implement and report
It’s not a new
phenomenon!
7. IT’S COMPLEX…
Source: Adapted from AAK, "AAK's Value Chain", All about better sourcing of palm, https://www.aak.com/contentassets/3a2ef8f179cd4c99a9e144a1fcdf62f7/aak-placein-the-
value-chain---palm-2021-v2.jpg and Proforest, “Soy Traceability and Supply Chain Transparency,” Soy Toolkit Briefing Note 02.A, https://static1.squarespace.com/
static/5b48c2572487fdd7f1f29d1c/t/6107e38471685d416f2cd05d/1627906949303/ENG+BN2A_05July2021.pdf.
8. IT’S COMPLEX…
Source: Adapted from AAK, "AAK's Value Chain", All about better sourcing of palm, https://www.aak.com/contentassets/3a2ef8f179cd4c99a9e144a1fcdf62f7/aak-placein-the-
value-chain---palm-2021-v2.jpg and Proforest, “Soy Traceability and Supply Chain Transparency,” Soy Toolkit Briefing Note 02.A, https://static1.squarespace.com/
static/5b48c2572487fdd7f1f29d1c/t/6107e38471685d416f2cd05d/1627906949303/ENG+BN2A_05July2021.pdf.
Commodity flow
Information flow
9. The nature of global commodity trade presents
huge challenges for passing on information
from the point of origin
12. CASE STUDIES
Type of Initiative Commodity/
Geography
Top-down and bottom-up initiatives Cattle in South America
Smallholder mapping Palm oil in Southeast
Asia
Mandatory government systems and
voluntary certification
Timber in the Republic
of the Congo
Collaborative and innovative
approaches
Soy in Brazil
Multistakeholder collaboration Cocoa in Ghana
13. SUCCESS FACTORS
Public funding and civil society involvement in design and
management
Beneficial regulatory environment
Shared goals and trust
Equitable cost sharing
Data is accessible, metrics are comparable
14. ROLE OF CIVIL SOCIETY
Monitoring action to ensure accountability
Supporting consistent objectives and
reporting
Providing technical expertise and social
understanding
15. ROLE OF PRIVATE SECTOR
Pursuing equitable solutions to costs incurred by
increasing traceability and transparency
Taking measures to address specific challenges
facing smallholders and SMEs
With other stakeholders, support credible,
consistent, comparable data sharing and disclosure
16. ROLE OF PUBLIC SECTOR
Collaboration on consistent, cohesive data ask
Creation of supportive policy environment
Provision of funds, guided by existing success stories
National systems to ‘raise the floor’
17. DIRECTION OF TRAVEL & INNOVATION
Data or technology should not limit the objectives or ambition
(investment in continued innovation is key)
Greater value being drawn from openly accessible datasets
Increased reliance on remote sensing – though gaps remain,
these are being filled
Expanding efforts to engage with new audiences and work with
smallholders
18. SUMMARY
• State of action lags behind what current information
availability makes possible
• Total visibility of supply chains is not always required to meet
sustainability goals
• Opportunities exist for all stakeholders in data sharing
• There is no one-size-fits-all approach
20. PANEL DISCUSSION
Moderator: Till Neeff, Consultant, FAO
Brad Clark, Joint Head of Sustainable Commodities, U.K. Department for
Environment, Food and Rural Affairs (DEFRA)
Toby Gardner, Director, Trase
Martin Huxtable, Global Sustainable Sourcing Director, Unilever
Juan Pablo Solís Víquez, Senior Advisor Climate and the Environment, Fairtrade
International
T&T not new
T&T designed to meet a specific need, a requirement, whether voluntary, mandatory, public, private sector or civil society
It’s the speed, scale of last 10 years
Don’t be limited by what can do today, set the objective and then find a solution
Means dif things to dif people in dif uses
Traceability – the ability of an actor to link a product or unit of material with information about its history of locations, owners, and transformations between points in the supply chain such as from production site to end user. The information associated with commodities also includes sustainability aspects at the production site, notably forest loss.
Transparency - the making available of information by any stakeholder. The information that is made available often relates to the traceability of commodities, but can include broader information that is relevant and useful in the context of halting and reversing forest loss such as sustainability policies and practices, commitments, land use information, monitoring, or outstanding grievances. There can be different levels of transparency, ranging from information sharing within an organization or among peer companies, to sharing with specific stakeholders, to sharing publicly
Means dif things to dif people in dif uses
Traceability – the ability of an actor to link a product or unit of material with information about its history of locations, owners, and transformations between points in the supply chain such as from production site to end user. The information associated with commodities also includes sustainability aspects at the production site, notably forest loss.
Transparency - the making available of information by any stakeholder. The information that is made available often relates to the traceability of commodities, but can include broader information that is relevant and useful in the context of halting and reversing forest loss such as sustainability policies and practices, commitments, land use information, monitoring, or outstanding grievances. There can be different levels of transparency, ranging from information sharing within an organization or among peer companies, to sharing with specific stakeholders, to sharing publicly
It’s very difficult, very time consuming and resource intensive to map out and understand all of the relationships in supply chains.
A supply chain actor will have to go through lots of intermediaries to get to information about the production area and relationships in supply chain will shift from year to year.
It’s hard to get to information from parts of the supply chain that are distant from them, and there may be parts of the supply chain where there is low information availability for any stakeholder.
It is also important for information to be available to stakeholders that are outside of supply chains, like regulators, finance, governments and civil society.
This creates challenges for passing on information on commodity characteristics from the point of origin
Literature review
120+ reports and articles reviewed
Interviews
71 total interviewees, across private sector, public sector and civil society
Case studies
5 case studies, focussing on different commodities and different questions
Mapping of tools and initiatives
90+ mapped, examining the function and funding of them, to explore what information is being sought by which parties
[Position of individual tool/initiatives is indicative, they’re provided as examples, there’s no quantitative assessment or rating behind their positions]
Broad range of aims and functions of tools and initiatives, reflective of the range of different local production contexts, industry norms, and policy environments.
Clear scope and corresponding metrics of success enable targeted initiatives that can be evaluated. T
Private sector actors are often the primary actors in increasing traceability in commodity supply chains, and should continue to increase levels of traceability, as companies are increasingly starting to do so for the sake of supply chain resilience and efficiency.
Major barriers are cost and lack of data sharing. Private sector actors can find equitable ways to fund changes, and credible ways to share data while respective privacy, commercial sensitivity, and anti-trust.
Govt roles – not just funding, eg data availability, enabling frameworks, clear consistent policy, empowering and supporting action by all.
Producing
A T&T system is designed to meet an end goal of its user whether to meet a commitment or regulation, or to be used as part of monitoring and reporting by third parties.