Creating a level playing field

The need for partnerships and pre-competitive

collaboration

Dave Boselie

Mainstreaming Sustainable Trade

for development impact

• Public private partnership facility

• Funded by Dutch, Swiss and Danish ODA

• Impact on MDGs1,7 and 8 and PSD

• 18 commodity chains in 50 countries

• 300 companies

• 30 international NGOs

• 130 million Euro investment capital

Our challenges are unprecedented

Global trends by 2050

0

20

40

60

80

100

120

140

160

180

200

2010 2050

pe

rce

nt

incre

ase

Income

Consumption

Population

Source: United Nations

1 Time to increase GDP per capita (in PPP terms) from 1,300 to 2,600 USD Source: Angus Maddison, University of Groningen

The China phenomenon: speed & scale of

change

China doubling of GDP

was 12x the speed of

Britain during the

Industrial Revolution at

100x the scale

400 million lifted out of poverty

Britain (1700-1855)

US (1820-1873)

India (1989-2006)

China (1983-1995)

Population at start of growth period

9M

10M

822M

1,023M

Years to double GDP per capita1

155

53

17

12

Countries with >5% GDP growth (2010-2011)

Source: UN Comm Trade

Countries where China is a top trading partner

Future growth will not be in Europe

per capita impacts acceptable

with 7 billion

will not be with 9 billion

on a finite planet, should consumers have a choice

about sustainable products?

or should all choices be sustainable?

Our theory of change: Business has

great leverage

Top 200 multinationals 15 key commodities 35 most threatened regions

A business case for public-private

cooperation

Cooperation is vital for scale

Sustainability Initiative Fruit

and Vegetables Program

Sustainability in Fruit and Vegetable sector

• Annual Dutch import & trade 10 million tons, with a total

value exceeding € 10 billion

• Our sustainability intervention focus (hotspots)

– Labor conditions, social, migrant workers, unions

– Transparency and traceability in the value chain

– Water management (secure and improve irrigated production,

sustainable water usage)

– Other Environmental issues like capacity building on pest control

But also……

– Inclusion of smallholders (include farmers in global trade,

introduce farming techniques etc.)

– Food security for local and international (increase production of

high quality products for local and international trade)

Program is built on three work streams

• Market transformation agreement

• Agreement on definition of sustainability

Public Statement

• Convergence and bottom up approach

• Equivalence of existing chosen standards

GSCP Bench marking

• Training of producers to meet sustainability norm

• Creation of an ‘enabling environment’

• Inclusion of small holders, sharing best practices

Producer Support beyond

certification

100% sustainably sourced fresh fruits and vegetables by 2020

1 January 2014 30%

1 January 2015 50%

1 January 2020 100%

…of the import volume of fresh fruits and

vegetables from Latin America, Asia and Africa is sustainably sourced.

Basket mechanism for standards

GSCP Equivalence

benchmarking

ETI

BSCI

Fairtrade

RFA

IMO

SIZA

Compliance Levels

C B A A+

SA8000

the GSCP Reference tools

for social & environment

what how who

» open source

» common message

» best existing practice

» based on existing international standards

A basket of standards and a neutral benchmark

16

Control and Evaluation of partners

Producer Support: building a new business

Inclusion of small holders in Ethiopia

• In partnership with a Dutch company, improve socio-economic and

environmental condition of the farming community (3 year project)

• Sustainable frontrunner in farming, packing and distribution in close

cooperation with 100 to 150 selected small holders (175 ha)

• Products to be sold in the local and international markets (total

product procurement)

• The project approach aims to create a multiplier effect to other

small holders in the area and a positive spin off to the local

economy

Producer Support: institutional strengthening

for national pineapple action plan

• Costa Rican government and UNDP

• The pineapple industry (producers, farmers, buyers, retail)

came together. Working towards a sustainable production of

pineapple

• Established a national Action Plan for the Responsible

Production and Trade of Pineapple

• Develop a monitoring system for the Action Plan 2013-2017.

IDH and UNDP to facilitate and ensure the National Plan is

implemented

Producer Support: institutional strengthening

Social and environmental Capacity Building Program

for the entire Fruit industry - South Africa

• The Fruit industry developed a standard ; endorsed by unions,

SA government, national and international retailers as well as

being bench marked against GSCP Equivalence tools

Development of knowledge and skills at local levels

Build capacity of people:

• working on farms

• Providing service to farms

• Develop capacities and support for continuous improvement of

working and living conditions for agricultural employees

• Passport to Work!

Covenant members

Discussion points

• Control is good – trust is better: are we confident that

voluntary standards provide us with the evidence base for

impact?

• What are the boundaries for company engagement in the

communities? (e.g. With regards to nutrition, living

versus minimum wages, etc)

• Has sustainability become part of your profit and loss

account or is it still CSR?

• Is the Western concept of Shared Value Creation the

appropriate answer to the Chinese and Indian business

proposition (e.g. when operating in Africa)?

Contact info:

Dave Boselie, PhD

Senior Manager Learning & Innovation

Nieuwekade 9 3511 RV Utrecht

T: +31(0)30 2305 686

M: +31(0)6 48486880

P.O Box 19219 3501 DE Utrecht

Interesting link:

http://www.imd.org/research-knowledge/global-

centers/sustainability-leadership/practitioner-tool-kits/