Sustainability Initiatives in Other Tropical Commodities Dr. Jean-Marc Anga Director, Economics and Statistics Division

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1 0 International Cocoa Organization Sustainability Initiatives in Other Tropical Commodities Dr. Jean-Marc Anga Director, Economics and Statistics Division

2 1 Sustainable Development 1983: Brundtland Commission set up by the UN. 1987: Publication of the Brundtland Commission s s Report: Sustainable Development defined as: Development that meets the needs of the present without compromising the ability of future generations to meet their own needs.

3 2 The Three Pillars of Sustainability 1. Social 2. Environmental 3. Economic Without economic sustainability, all efforts to achieve social and environmental sustainability are doomed

3 Initiatives on Sustainability in Other Commodities TIMBER Forest Stewardship Council (FSC) Association of Members consisting of representatives from environmental and social groups, timber trade,

4 3 Initiatives on Sustainability in Other Commodities TIMBER Forest Stewardship Council (FSC) Association of Members consisting of representatives from environmental and social groups, timber trade, community forestry organizations groups and forest product certification organisations from around the world. Mission is to promote environmentally appropriate, socially beneficial, and economically viable management of the world s s forests.

5 4 Timber Over 90 million hectares in more than 82 countries certified according to FSC standards International labelling scheme for forest products. FSC operates through its network of National Initiatives in 43 countries. c Proliferation of certification schemes most of which are national l or regional initiatives. Other certification schemes include the European Programme for Endorsement E of Forest Certification Scheme (PEFC) and the Sustainable Forest Initiative (SFI). PEFC provides for mutual recognition of the various national schemes, but the proliferation of schemes remains an issue.

6 5 Palm Oil The Round Table on Sustainable Palm Oil Created in 2002 by a small number of substantial growers and users of palm oil, together with the World Wide Fund for Nature (WWF) Spurred by concern at the lack of application of the three pillars of sustainability in the dramatic expansion of oil palm cultivation in South East Asia, Africa and South America. 156 Ordinary Members in seven different sectors spanning the length of the supply chain; 52 Affiliate Members.

7 6 Palm Oil Work on National Interpretation of these Principles and Criteria and efforts to adapt them for smallholders now underway. Encouragement of the Initiative from relevant governments, but no serious financial support provided. RSPO successful because of involvement of major players, namely relevant NGOs and private business, including the plantation companies and the industry processing palm oil.

7 Coffee 2 major initiatives: The Common Code for the Coffee Community, (4C Initiative) initiated ted by the German Technical Cooperation Agency (GTZ) and the European Coffee Federation Based on a

8 7 Coffee 2 major initiatives: The Common Code for the Coffee Community, (4C Initiative) initiated ted by the German Technical Cooperation Agency (GTZ) and the European Coffee Federation Based on a voluntary Code of Conduct, comprising basic social, environmental and economic practices in coffee production, processing and trading. Market participants have to exclude the use of some Unacceptable Practices to become Members of the Association. Members pay a fee to finance the functioning of the Initiative.

8 Coffee The Sustainable Coffee Initiative (SCI) set up by the IISD and UNCTAD Aim is to improve the social, environmental and economic sustainability of coffee production and trade by developing a

9 8 Coffee The Sustainable Coffee Initiative (SCI) set up by the IISD and UNCTAD Aim is to improve the social, environmental and economic sustainability of coffee production and trade by developing a global multi-stakeholder strategy. Other initiatives on coffee include: 1)Organic 2) Fairtrade 3) Euregap Coffee standards 4) Smithsonian Migratory Bird Centre 5) Starbucks System 6) Rainforest Alliance.

10 9 Cotton The Better Cotton Initiative (BCI) Collaborative, multi-stakeholder initiative set up by WWF and IFC. Aims to transform cotton s s social and environmental performance and to significantly reduce pesticides and water use, while causing no hardship to cotton producers. Works with farmers, governments, investors and retailers in the market chain

corporations involved in soya production, processing and shipping.

11 10 Soya Bean ROUNDTABLE ON SUSTAINABLE SOYA Consultation process initiated WWF brought together NGOs and organized labour groups with corporations involved in soya production, processing and shipping. Slow progress initially but recently, more interest expressed by potential stakeholders

12 11 Sugar Cane BETTER SUGAR INITIATIVE Being set up by WWF and other stakeholders including a small number of manufacturers and financial institutions. Consultations ongoing on suitable governance structures and possible operations. Initiative will give due attention to improvements to be introduced by small growers and a delivery mechanism to achieve this objective.

13 12 Tea Ethical Tea Partnership Labour standards in the tea supply chain, working with the large number of substantial commercial plantations and their associated out-growers. Involved in environmental and sustainability issues associated with w tea cultivation. Looks at six key areas of tea estate life. Tea estates are closely monitored in order to remain on the approved supplier list. The strength of the Partnership lies in its positive relationship p with producers and their commitment to the initiative.

14 13 Lessons to be Learned Features of a good sustainability initiative

15 14 Lesson 1 Governments in producing countries should be actively involved in sustainability initiatives because of their considerable influence on the commodity sector through agricultural policies.

16 15 Lesson 2 A A proliferation of initiatives should be avoided. Important to define, at an early stage, what market participants should not do to negatively impact sustainability in the sector.

17 16 Lesson 3 A A successful initiative must ensure that all important stakeholders feel that their interests are fully taken into account. The initiative must be characterized by active multi-stakeholder participation, open to contributions from all relevant parties.

18 17 Lesson 4 Trade-off between ideal situation and realistically achievable. Balance is needed to meet these conflicting needs.

19 18 Lesson 5 Transparency: key guiding principle Initiatives for all commodities go through a process/journey

20 19 Lesson 6 Sustainability to integrate environmental, social, and economic goals in the policies and activities. Commitment to best practices

21 20 Lesson 7 Good governance must be practised

22 21 Lesson 8 Conservation of the biodiversity must remain a target.

23 22 Lesson 9 Finally Any subsequent standards agreed upon must be verifiable and appropriately certified.

24 23 Sustainability in ICCO Article 39 of the International Cocoa Agreement, 2001, encourages its Members to give due consideration to the development of a sustainable cocoa economy. Consultative Board on Sustainable Cocoa Economy

25 24 Conclusion ICCO Only truly global inter-governmental organization in charge of cocoa. Ideal forum to handle issues related to cocoa sustainability. Accra Round Table is the best opportunity to agree on a realistic, strategic approach to achieving a sustainable world cocoa economy.

26 25 Thank you

IDH Programs in Vietnam

IDH Programs in Vietnam IDH, The Sustainable Trade Initiative accelerates and up scales sustainable trade by building impact oriented coalitions of front running companies, civil society organizations, governments and other stakeholders.