Heleen van den Hombergh IUCN NL

Agro-commodities and sustainable sourcing

Elements for practicing good

governance LFN-Platform BEE Master class June 16th 2014

[email protected]

INTERNATIONAL UNION FOR CONSERVATION OF NATURE

towards net positive impact on agro-commodity landscapes?

Practice and promote:• Sustainable sourcing: betting

on best quality • Resource efficiency: optimize

use• Extra good governance of

natural capital: investing in the landscape

www.leadersfornature.com @Leaders4Nature

CALLING THE RAIN WITH A THOUSAND MOUTHS


WHAT HAPPENS HERE IN NORTHERN ARGENTINA?

• Is it the farmer who didn’t rotate? Bad land use planning?

• Lack of water streams management?

• Accelerating regional climate change, shocks and

desertification in the Gran Chaco?

• Pushing nature over its limits?

Bad governance on all levels. Risk to producers. Risk to the

Argentina economy. Risk to Dutch productive sector


Biodiversity & agro supply chainsDeforestation/habitat destruction; fragmentation; degradation; pollution; invasion

Managing those risks and finding opportunities with Environmental and Social Management Systems supports:• supply security, • legality/operational security, • efficiency and cost saving of suppliers (eg RSPO:

savings on conflict and pesticides), • access to financial services• creation and sharing of values• positive future-proof reputation


Leaders for Nature natural capital roadmap• 1 Identify your impacts and dependencies on natural capital

• 2 Assess your business risks and opportunities

• 3 Measure and report on your impacts and dependencies

• 4 Take action to reduce your risks and capture opportunities

• 5 Integrate natural capital into your business strategy

• 6 Engage and jointly realize the transition towards a green and sustainable economy


Agro-commodity chains and the LfN 6 steps

• Identify Map your supply chains with most (potential) impact. Do you depend on them, to what extent? Who are your suppliers? Where does the product come from? Can you know this?

• Assess governance risks and opportunities for those value chains their sourcing areas and suppliers, and the leverage you have to assure sustainability

• Measure….potential costs and benefits of certification and other good governance actions you can take


agro commodities & 6 steps, continued

• Take action and demand/promote/ implement certification and other means to protect, manage and/or restore natural capital

• Integrate these principles, processes and the required certification systems in your sourcing policies and procurement rules (Codes of Conduct/Supply, Charter e.g. Eneco)

• Engage with others to promote the approach, share your knowledge and policies and create a stronger leverage


IFC Good Practice Handbook (196 page!)

“Assessing and Managing Environmental and Social Risks in an Agro-Commodity Supply Chain” (2013).

Concepts, tools and examples to:• assess chain risks and country risks,• identify your leverage and • create policies and guidance for staff and

suppliers according to your and their potential.


IFC examples:• An Environmental and Social Action Plan (plan, do,

check, act)• How to do a supply chain map• How to undertake a rapid diagnostic of supply

chain info• How to rate commodity and country risk factors• Elements of a supply chain policy• Examples of supply chain guiding principles• Guidelines for operations, suppliers codes of

conduct and score cards, contract clauses, communication, rewards! Complaint mechanisms….


Governability is often limited, can you support with positive action? IUCN NL tool:1. Context

Pressure on the land/resources? Level of conflict over resources, land, use and access rights?

2. Formal regulatory framework Regulatory capacity of government? Existence of a regulatory framework? Clarity & coherence of policies, laws and regulations Availability of or scope for authoritative land/resource use plans

3. Capacity, power and resources to implement or resist the regulatory framework: Of governments & companies to implement and enforce law and policy. Of local communities to e.g. be engaged in FPIC, use complaint mechanisms and

to claim their rights when violated. Availability and safety of watchdogs of the operations

4. Quality of institutions for interactions between stakeholders to define and implement the rules of the game Availability of effective communication and regulation mechanisms Availability of institutions for (legal) complaints, mediation facilities etc.


Sustainable sourcing:

Choose quality certification including good quality of control & Work towards traceability, CoC

Promote such systems, principles and criteria in sourcing policy and codes.

INTERNATIONAL UNION FOR CONSERVATION OF NATURE

Country A Country B

Good governance level

Gap: additional efforts needed

Issues adequately covered & in laws & regulations….?

The good governance gap in theory…and practice


IUCN NL (GOOGLE THE TITLE BETTING ON BEST QUALITY ), BENCHMARK OVERVIEW OF BIOFUEL, SOY AND PALM OIL STANDARDS: MIND THE LEVEL OF ASSURANCE OF A STANDARD!

“BETTING ON BEST QUALITY”


Resource efficiency:

• productivity increase /area boundary setting,

• reduce, reuse, recycle (cradle to cradle)

• cascade (= co-operate)• promote efficiency of use by

clients


Extra good governance measures biodiversity

Know your sourcing areas if possible. Do a governance opportunity and risk analysis and contribute positively, for example: • Respect, promote responsible land use planning and High

Conservation Value Area protection (private reserves? wildlife corridors?)

• Help restore HCVAs where needed• Help negotiate/provide REDD +/ carbon finance other PES

mechanisms for farmers, possibly in your sourcing areas• Co-operate with local conservation organizations to do so.

We can help find them.


• Sustainable sourcing of agro-commodities

• A company guide to promoting good governance

Draft/work in progress…..join in!

[email protected]

Thanks for being part of the effort!

Heleen van den Hombergh IUCN NL

Environment

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