Action Plan Sustainable Trade 2011-2015 December 2012
IDH accelerates and up-scales sustainable trade by building impact oriented coalitions of front running multinationals, civil society organizations, governments and other stakeholders. Through convening public and private interests, strengths and knowledge, IDH programs help create shared value for all partners. This will help make sustainability the new norm and will deliver impact on the Millennium Development Goals.
The Sustainable Trade Initiative (IDH) Nieuwekade 9, P.O.Box 19219 3501 DE Utrecht, The Netherlands T +31 (0)30 236 34 85 www.idhsustainabletrade.com office@idhsustainabletrade.com
Programs in Implementation: Pillar Programs Sector
CONSUMER MARKET Investments in Sustainability (EUR mln)
Cocoa actual 2008-2011
IDH
Private
Other donors/ investors*
4,11
5,04
1,34
Relative Importance World Production
4.1 mln ton Cocoa forecast 2012-2015
10,35
15,34
3,78
Tea actual 2008-2011
3,05
1,35
3,22 4.5 mln ton
Tea forecast 2012-2015
Soy actual 2008-2011
3,32
0,35
5,21
0,18
9,62
14,51
2,00
Timber actual 2008-2011
5,22
1,95
4,86
Timber forecast 2012-2015
7,96
7,65
5,39
Cotton actual 2008-2011
3,08
3,01
3,08
Aquaculture actual 2008-2011
0,90
10,38
0,13
1,00
7,53
11,52
—
Electronics actual 2008-2011
0,32
—
—
Electronics forecast 2012-2015
2,18
2,40
—
Coffee actual 2008-2011
0,11
0,04
0,05
10,45
24,36
MDG 7: Environmental Footprint
POLITICAL ARENA Key Partners
Focus
MDG 8: Sustainable Trade
Relevance & Opportunities
Countries / Regions
Target: Sustainably sourced cocoa the norm for Europe by 2016. Progress 2011: 60,000 producers selling sustainable cocoa to program partners. 74,600 ton of certified cocoa puchased by program partners.
Bilateral cooperation with governments in West Africa. Replication of PPP to other regions, with West-European countries leading in the drive for sustainability.
Private: ADM, Ahold, Armajaro, Barry-Callebaut, BT Cocoa, Cargill, Continaf, Ecom, FrieslandCampina, Mondelez International, Mars, Heinz, Nestlé, Multi-Trex, Ferrero, Delfi, Cemoi Governments: Cameroon, Côte d’Ivoire, Ghana, Indonesia, Switzerland, Vietnam, The Netherlands Civil-society Organizations: Fairtrade International (FLO), ICCO, Oxfam Novib, Rainforest Alliance, Solidaridad, UTZ Certified, World Cocoa Foundation (WCF), CPO International Bodies: GIZ, Swisscontact, UNDP
Cameroon, Cote d’Ivoire, Ghana, Indonesia, Nigeria, Vietnam
1.8 mln ton
Securing sourcing in the long term. Higher farm yields, better product quality and sustainable farming are vital to the future of the sector. Consumer drivers on social issues.
Target: Increased income for at least 300,000 farmers in West Africa. Progress 2011: 60,000 cocoa producers trained.
Target: 82,000 ha sustainable land use. Climate change adaption. Progress 2011: 20,000 ha and 113,000 ton of sustainable cocoa produced.
0.3 mln ton
Concerns about long term sustainability of the supply base, due to potential climate change impacts and environmental challenges. Consumer drivers on both environmental and social issues.
Target: Increased income for 310,000 farmers. Progress 2011: 144,000 producers and workers meeting sustainability standards with respect to labor conditions and environment.
Target: 365,000 ton certified tea from smallholders, 150,000 ha of sustainable land use. Progress 2011: 53,000 ha managed under UTZ and RA certified sustainable production techniques.
Target: 22% world tea export certified. Progress 2011: 13% of world tea export is certified.
Europe, especially the UK, and India, are key partners for the tea industry in driving sustainability. Each of these countries have major tea packers available for strategic partnerships.
Private: DE Masterblenders 1753, Twinings, Unilever, Kenya Tea Development Agency (KTDA), Tata Global Beverages, Ethical Tea Partnership (ETP), KNVKT Governments: Kenya, India, Indonesia, Vietnam, China Civil-society Organizations: Oxfam Novib, Oxfam GB, Solidaridad, Rainforest Alliance, UTZ Certified, Business Watch Indonesia (BWI), International Bodies: World Economic Forum Vietnam, LEI Wageningen UR
Kenya, India, Rwanda, Uganda, Malawi, Indonesia, China, Sri Lanka, Vietnam
Target: 1.3-2 million ha under sustainable land use and 150.000-250.000 ha of native vegetation conserved/ recovered. Progress 2011: 6,300 ha under RTRS certified responsible land use and 20,000 ton certified RTRS soy.
Target: 10-15% of soy imported in the EU is RTRS certified, or equivalent (4-6 million ton). 100% of Dutch soy processing and consumption certified in 2015. Progress 2011: 245,000 (NL) and 250,000 (B) ton certified soy imported. 110,000 (NL) and 14,000 (B) ton on the way to RTRS certified soy purchased by program partners.
Soy is a critical commodity in various government policies such as Biodiversity Program, deforestation, protein debate, biofuels. Also key to EU policy for biofuels.
Private: ADM, Agrifirm, Ahold, Amaggi, Arla, Cargill, Cefetra, For Farmers, FrieslandCampina, Lantmännen, Nidera, Nutreco, Unilever, Vion, Stichting Project Ketentransitie Verantwoorde Soja, Nevedi, Product Board MVO, Dutch Retail, Dutch Meat, Eggs and Dairy Industries, Dutch Farmers LTO, IFC, FMO, Fapcen, Viluco, Los Grobo/Ceagro, DAP, Kumagro, Aapresid and many others Civil-society Organizations: Solidaridad, WWF, Natuur & Milieu a.o. International Initiative: Roundtable on Responsible Soy (RTRS) including: COOP, Glencore, Nestle, Solea
Brazil, Argentina, Paraguay, Bolivia
Private: IDH convenes different partners throughout the supply chain, in order to build a strong coalition. In total over 75 private sector partners are participating in the program, the number is still increasing. Governments: The Netherlands and local governments Civil-society organizations: Many other donors, NGOs, service providers are participating in the program, which include Adessium, KfW, RFA, ATIBT and federations SNV, TBI, TFF/IFT, TFT International bodies: CBI, Ministry of Foreign Affairs of the Netherlands
Brazil, Peru, Bolivia, Indonesia, Democratic Republic of the Congo (DRC), Congo Brazzaville, Gabon, Cameroon
15 mln ton of soybeans. 25 mln ton of soymeal and 1 mln ton of soy oil. 15% of total world harvest exported to EU
Public concern on deforestation. Soy is a critical raw material for animal protein.
Target: Legal compliance and ILO standards applied in certified farms. Progress 2011: First farm certifications in 2011.
141.7 mln m3
5.2 mln (2007); 2.7 mln m3 (2009)
EU regulations are banning illegal timber. Public procurement policies are prescribing sustainable timber. Popular species are expected to become scarce soon.
34 mln ton
Knitted outerwear 2.6 mln ton; Woven outerwear 2.4 mln ton
Cotton is the most used natural fibre, though is publicly associated with excessive water use, use of pesticides, labour circumstances, and indebteness of farmers.
Target: Increase of income for 350,000 farmers. Progress 2011: 29,000 farmers trained.
Target: 900,000 ha of sustainable land use. Progress 2011: 33,000 ha where Better Cotton (BC) is grown.
Target: 1 million ton cotton lint produced sustainably by 2015. Progress 2011: 40,000 ton BC lint produced and verified. 8,000 ton BC procured by program partners.
Demand driven strategy based upon financial commitment of leading retailers and brands. Pre-competitive collaboration supported by stakeholders from the cotton industry and civil society.
Private: Adidas, IKEA, H&M, Levi Strauss & Co, Marks & Spencer, Nike, Walmart Governments: Denmark, Mozambique, Brazil Civil-society organizations: ACF (Ambuja Cement Foundation), Action for Food Production (AFPRO), Arvind, Cotton Connect, Solidaridad, Trident, WWF India, WWF Pakistan, ABRAPA, OLAM, ICCO, Rabobank Foundation
India, Pakistan, Mali, China, Brazil, Mozambique
Pangasius 220,000 ton; Shrimp 350,000 ton; Tilapia 20,000 ton
Processors, traders and producers are responding to retailer’s demands to provide their consumers with certified sustainable seafood.
Target: Pangasius: 100,000 tons produced responsibly by 2013. Farmed shrimps: 115,000 tons produced responsibly by 2015. Tilapia: 7,500 tons produced responsibly by 2015. Progress 2011: Pangasius farmers preparing for first ASC certification beginning of 2012.
Target: Better aquacultural practices and reduced feed use in pangasius farms. Progress 2011: Pangasius farmers preparing for first ASC certification beginning of 2012.
Target: Equivalence of 15% of European import responsibly produced and/or ASC certified. Progress 2011: First certified volumes from pilot farms (10,000 ton). Aquaculture Stewardship Council (ASC) label launched.
Active role with Embassies in convening international private sector with local players supporting the transition from development to local development and economic empowerment. Aquaculture as a part of the EU Common Fisheries Policy.
Private: Anova, DKSH, FEMEG, Mayonna, Nordic Seafood, QUEENS, Seafood Connection VASEP & Vinafis, Culimer, Costa, Foppen, Heiploeg, Hupueden, Lenk Seafods, Primstar, Royal Greenland Government: Vietnam Civil-society organizations: SNV, ASC, Global GAP, WWF International bodies: GIZ
China, Ecuador, India, Indonesia, Thailand, Vietnam
Total export value € 38 trln
€ 172 bln
Image and risk management, especiallly regarding working conditions and high turnover.
Target: Improved rights and working conditions for 500,000 workers.
Target: Significant improvement in CO2/waste/ water usage issues for all participating factories.
Target: Public procurement policies on electronic devices. Possible diplomatic cooperation with China and other Asian countries.
Public procurement policies on electronic devices. Possible diplomatic cooperation with China and other Asian countries.
Private: Phillips, Hewlett Packard, Dell, Apple, Alcatel-Lucent Civil-society organizations: INFACT, Good Electronics, Somo, Globalization Monitor (GM) International bodies: Dutch Federation of Trade Unions (FNV), Economic Rights Institute, International Hong Kong Liaison Office (IHLO)
China
8 mln ton
3.2 mln ton
Secure and increase sustainable coffee production against increasing demand.
Target: Increasing the resilience of 4.3 mln farmer families through sustainable production.
Target: Climate mitigation and adaptation for coffee production.
Target: Increasing sustainable coffee sales to 25%.
Key cash crop for sustainable development and poverty reduction for >100mln workers in coffee sector.
Private: Mondelez International, Nestlé, DE Master Blenders 1753, Tchibo, Royal Dutch Coffee & Tea Association (KNVKT), European Coffee Federation (ECF) Civil-society organizations: WWF International bodies: GIZ
Brazil, Colombia, Ethiopia, Indonesia, Peru, Uganda, Vietnam
1,35
Aquaculture forecast 2012-2015
Coffee forecast 2012-2015
MDG 1: Poverty Reduction and Social Agenda
0,18
Soy forecast 2012-2015
6,63
Business Drivers
Import Europe**
0,38
260 mln ton
Cotton forecast 2012-2015
PRODUCER MARKET
Aquaculture total 50 mln ton; Pangasius 1.4 mln ton; Shrimp 3.4 mln ton; Tilapia 2.8 mln ton
m3
56,94
Target: 600,000 ha sustainable certification for local small producers and 1,5 mln ha improved FSC certified.
Target: 20 million ha of tropical forest certified. Progress 2011: 875,000 ha under FSC certified sustainable management.
At least 10% increase share of sustainable certified tropical timber in the Netherlands, France and Spain.
Several European countries with sustainable procurement policies. EU Timber Regulation prohibits illegal timber.
* Estimates are based upon projected and consolidated sector investments in sustainable market transformation, related to IDH programs. ** EU, Norway and Switzerland.
Overall Conclusions: 1. T he eight pillar programs involve more than 200 companies – and 30 civil society organizations and run in over 50 countries.
2. F rom 2009 to 2015 these companies are expected to invest approximately € 600 mln in sustainability in the eight pillar programs.
3. C onsidering their turnover, their position on the world market and their employment generation, it is valuable and essential that these companies secure the future supply of sufficient, high quality raw materials.
4. C ooperation between companies NGOs and government results in stronger leverage for making the commodity chains sustainable.
5. S upport to these public-private partnerships is a tangible and significant contribution to the Millennium Development Goals 1, 7 and 8.
Programs in Implementation: Light Programs Sector
CONSUMER MARKET Investments in Sustainability (EUR mln) IDH
Natural Stone actual 2008-2011
0,52
Private
0,34
Relative Importance
Other donors/ investors*
World Production
0,10
0,10
—
Tourism actual 2008-2011
0,33
0,42
0,12
Tourism forecast 2012-2015
0,36
1,08
0,14
Spices actual 2008-2011
0,07
—
—
0,58
Import Europe**
215 mln ton
16 mln ton
€ 643 bln. In 1 of 3 developing countries, tourism is the most important export sector
€ 327 mln tours booked, of which 54 mln to developing countries
1.5 mln ton 0,60
Business Drivers
420,000 ton (€ 1.1 bln)
MDG 1: Poverty Reduction and Social Agenda
MDG 7: Environmental Footprint
POLITICAL ARENA MDG 8: Sustainable Trade
Relevance & Opportunities
Key Partners
Focus Countries / Regions
Public procurement policies are increasingly asking for sustainably produced natural stone.
Target: Improved living conditions for 20,000 workers in India and China. Abolish child labour. Progress 2011: Pilot with 1,885 workers and 21 suppliers committed to improving working conditions.
Target: Improved management of water, wastewater, material and waste processing.
Target: 5-10% of European imports sustainable produced natural stone.
Public procurement policies.
Private: FEBENAT, Aggregate Industries, Arte di Granito, B&Q, Beltrami, Ceramic Prints, Dekker Natuursteen, Hoogenberg, Jetstone, Michael Oprey & Beisterveld, Petrumus, Stoneasy, Struyk Verwo Infra, Natuursteenbedrijf van Leeuwen, Gebroeders Voets water en wegenbouw, Hofman, VNNI – Vereniging van Nederlandse Natuursteen Importeurs, ABN – Algemene Bond van Nederlandse Natuursteenbedrijven Governments: Netherlands Civil-society organizations: COS Nederland (Centre for Development Co-operation), Landelijke India Werkgroep (India Committee of the Netherlands), FNV Bouw (Construction Union, allied to FNV), The Forrest Trust (TFT)
Safeguarding access to European markets for accommodation and developing new tourism concepts in which sustainability is key.
Target: 15% of accomodations in the program are Travelife certified. Progress 2011: 7.5% of accommodations Travelife certified.
Target: 15% of accomodations in the program are Travelife certified. Progress 2011: 7.5% of accommodations Travelife certified.
Target: Roll out of program in at least 2 other European countries.
Public procurement policies. Company CSR policies for traveling. ABTA and ANVR are Europe’s leading travel sector organization in sustainability.
Private: TUI, Terra Travel (Baobab), Sawadee, Corendon, De Reisspecialisten Groep, ECEAT,IDUT,SNP Natuurreizen, Fox vakanties, ANWB, Oad Group, Thika Travel, Kuoni Nederland, Travellife, SNP, Fox Vakanties, Thomas Cook Civil-society organizations: ANVR, WUR, MVO Nederland International bodies: CBI
Brazil, Egypt, Kenya, Tanzania, Thailand, Turkey
Repositioning spices as natural and sustainable. Secure supply in the long term.
Target: Improved economic position for 10,000 smallholders.
Target: Maintain biodiversity, reduce pesticides and chemicals.
Target: 20% of Western European black and white pepper supply sustainably produced. 10% of three other spices sustainably produced.
Sustainability of agribusiness, foodsecurity and biodiversity.
Private: Cassia Coop, Euroma, Intertaste, Jayanti, McCormick, Nedspice, Olam, Unilever, Unispices, Verstegen Civil-society organizations: Both Ends, ICCO, Cordaid, KIT, SNV Asia Initiatives: Rainforest Alliance
India, Indonesia, Madagascar, Vietnam
Secure sourcing by stimulating processing import and exportfrom Africa. Need for an international sustainability standard.
Target: Higher yield and quality for 200,000 cashew farmers.
Target: Maintain biodiversity, reduce pesticides and chemicals.
Target: Stable supply of sustainably produced, good quality cashew.
The port of Rotterdam is the main trading center of edible nuts in Europe.
Private: Ahold, Intersnack, Olam, Trade & Development Group Civil-society organizations: Fairmatch support Initiatives: African Cashew Initiative (ACi), African Cashew Alliance (ACA)
Burkina Faso, Ivory Coast
Target: Protection of peat areas and conservation of biodiversity. Improved sustainable land use.
Target: 10-15% of European imports sustainably produced by 2015. Align demand of European retail and industry for sustainable palmoil.
Diplomatic cooperation with Indonesia and Malaysia in order to create legislative framework related to land use plannng. Cooperation with Chinese Governments as the representative of the biggest importers/end-users to include sustainability in the purchase conditions.
Private: Sime Darby, Unimills, PTPN III, Unilever, Olam Civil-society organizations: Task Force Palm Oil, MVO, Solidaridad International bodies: RSPO, Dutch embassy in Indonesia
Indonesia, Malaysia, West Africa, Colombia, Brazil
Expansion of the horticulture partnerships towards other subsectors and regions.
Private: SuperUnie, Ahold, Jumbo, C1000, Lidl Netherlands, The Greenery, Eosta, Fairfield’s, Jaguar, Nature’s Pride, Van Oers United, AgroFair, Staay Food Group Civil-society organizations: ICCO, Solidaridad, Productschap Tuinbouw, Frugi Venta
South Africa, Costa Rica, Colombia, Ghana, Ethiopia, Kenya, Peru
0,17
Natural Stone forecast 2012-2015
Spices forecast 2012-2015
PRODUCER MARKET
0,22
India, China
Programs in Development Cashew actual 2008-2011
0,11
—
— 3.4 mln ton with shell
Cashew forecast 2012-2015
1,93
1,94
—
Palm Oil actual 2008-2011
0,04
—
—
Palm Oil forecast 2012-2015
1,99
2,93
0,31
Fresh Fruit & Vegetables actual 2008-2011
0,03
—
—
Fresh Fruit & Vegetables forecast 2012-2015
1,35
1,35
—
Flowers actual 2008-2011
0,07
—
—
45 mln ton
6 mln ton
Fresh Fruits Total: 618 mln ton; Pineapple 18 mln ton; Grapes 68 mln ton; Oranges 69 mln ton
Fresh Fruits Total: 26.2 mln ton; Pineapple € 1.2 bln; Grapes € 3.2 bln; Oranges € 2.3 bln
Fresh Vegetables Total: 1 bln ton; Green Beans 19 mln ton
Fresh Vegetables Total: 12.1 mln ton. Beans € 472 mln
€ 24 bln Flowers forecast 2012-2015
0,57
0,96
0.12 mln ton shelled
221 mln ton
0,26
The palm oil industry is organized in the RSPO to address sustainability. In the implementation phase smallholder and chain of custody issues are vital.
Target: Strengthened position of small producers and plantation workers. Improved land use rights of local communities.
Ensuring supply in the long term. Maintain high level of food safety and food quality. Retailers are looking for sustainable food products to increase their brand value.
Target: Improved working conditions and increased income for workers.
Target: Reduced CO2emissions and waste. Reduced soil degradation and water extraction. Reduced use of pesticides.
Target: Mainstream and align demand of European retail for sustainable fruits and vegetables, and link demand to supply out of Latin America, Africa and Asia. Development of international coalitions to implement sustainability in different subsectors.
Defining a sector wide vision on sustainability, improving transparency in sustainable flower supply and reduce redundancy costs in certification for producers.
Target: Increased income security. Improved agricultural efficiency. Improved working conditions.
Target: Reduced use of chemicals. More efficient water consumption and reduced water pollution.
Target: Alignment of key market players to address and prioritize precompetitive sustainability issues.
Creation of a common vision and strategy on upscaling sustainability in the sector and a level playing field.
Private: The Association of Wholesale Trade in Horticultural Products (VGB), Flora Holland, EPHEA, BGI, BRO, PT, Hivos, Ancef, Pfitzer, Florint, LTO Noord, Glaskracht, Dutch Flower Group, Fleura Metz, MPS, Pflanzen-Koelle, Garten-center, Ahold Civil-society organizations: Both Ends, VSB, WWF Kenya, Fair Flowers Fair Plants, Rainforest Rescue International, Fair Trade, Max Havelaar, Union Fleurs
Colombia, Ecuador, Kenya, Ethiopia
Increasing resource scarcity. Legislation and reputational CSR motives demanding more supply chain transparency.
Target: Elimination of child and forced labour and other labour standards. Improved livelihoods for small scale miners.
Target: Illegal exploitation/ intrusion of sensitive environmental area’s. Reduced use of mercury and other toxic chemicals. Improved waste and water management.
Target: Engagement and inclusion of artisanal miners. Support comprehensive supply chain due diligence mechanisms.
Implementation of Dodd Frank and similar EU legislation against use of conflict minerals and promotion of supply chain transparency.
Potential partners: World Gold Council, Solidaridad, EICC/GeSI, Companies from the Financial Sector
Africa, Asia, Latin America
Program in Scoping Minerals & Metals actual 2008-2011
0,05
—
— Tin 300,000 ton; Gold 2,500 ton
Minerals & Metals forecast 2012-2015
0,04
0,04
—
Tin 41,000 ton; Gold 363 ton
* Estimates are based upon projected and consolidated sector investments in sustainable market transformation, related to IDH programs. ** EU, Norway and Switzerland.