2. Our Business

5. Our Impact Processes

We embed an impact lens into our decision making across our portfolio and we have developed processes and tools that reflect both how we manage for better outcomes and how we measure the type and degree of change that has resulted from our efforts:

We ask what impact we can have; screen for whether there is enough impact and understand how we can manage and deliver those targets; and evaluate and reflect upon whether we achieved what we set out to do.

We have aligned with global good practice in impact management and measurement and have incorporated elements from the IMP & 60dB LeanDataSM into our processes and tools.

The Impact Management Project

IMP provides a forum for building global consensus on measuring, assessing and reporting impacts on people and the natural environment. It is relevant for enterprises and investors who want to manage environmental, social and governance (ESG) risks, as well as those who also want to contribute positively to global goals.

IMP⁵ is an initiative with input from over 2,000 impact management professionals globally that aims to build consensus across the industry about how we talk about, manage and measure impact. The foundation framework includes the five dimensions of impact, which outline who is impacted, what the problem is being solved, how much impact is being created, the contribution toward impact of the investment intervention, and the impact risks. We have adopted these five dimensions to assess impact⁶ as part of our due diligence process and in our communications and reporting.

Figure 2: The IMP reached global consensus that impact can be deconstructed into five dimensions: What, Who, How Much, Contribution and Risk

Impact dimension Impact questions each dimension seeks to answer

What

Who

What outcome occurs in period? How important is the outcome to the people (or planet) experiencing it? Who experiences the outcome? How underserved are the affected stakeholders in relation to the outcome?

How much How much of the outcome occurs — across scale depth and duration? Contribution What is the enterprise’s contribution to the outcome, accounting for what would have happened anyway?

Risk

What is the risk to people and planet that impact does not occur as expected?

LeanDataSM @60dB

60dB (https://www.60decibels.com/) is a techenabled impact measurement company, working in over 76 countries with over 576 MNCs and other businesses, impact investors, foundations and not-forprofits. 60dB’s clients include: Unilever, MasterCard Foundation, Omidyar Network, Rockefeller Foundation, CDC, BRAC and Acumen. What is LeanDataSM @60dB? Listening to beneficiaries: customers, employees, suppliers and wider beneficiaries, using light touch, remote, standardised surveys via phone, SMS, IVR. So far 60dB has spoken to over 180,000 beneficiaries, across four continents. 60dB’s repeatable, rapid approach to gathering impact indicators and customer insights provides clients with genuine benchmarks of impact performance. These benchmarks enable a deeper understanding of impact and help to inform better decision making as well as data-led impact management.

Bringing it all together; how did we know meaningful change has occurred?

We collected impact data in different ways working with our partners. A clear focus on impact performance was built from the design phase, when we worked with partners to understand what impact we can expect. A ‘hybrid’ model to manage impact performance was used: VSCF partners had set thorough data collection at baseline and endline points; however the VSCF Facility Manager, complemented that with its own assessments, using LeanDataSM⁷. Beneficiary feedback studies were designed to bring in depth insights of impact by talking to beneficiaries⁸ and suppliers and gather different perspectives. We used elements of the IMP norms to design our data collection & reporting. Through 2021, we have spoken to over 3,200 workers, farmers or suppliers by following this process.

Section 8, Beneficiary insights, presents key findings from beneficiary feedback studies. Detailed findings from these studies are presented in Annex 1 of this Report. To report our impact results, we try to make meaningful sense of what has happened for our partners, FCDO, and broader stakeholders. We do this by streamlining impact reporting and reporting against the Sustainable Development Goals, with elements of the IMP in defining impact, highlighting the most important headline quantitative impact metrics, and listening from beneficiaries about that. The balance of key metrics, partners data collection, complemented by our own data collection, consistent frameworks, streamlined reporting and meaningful beneficiaries’ stories let us and our stakeholders know whether and what type of change has resulted from our investments.

Design

• Sector • Country • New project ideas • Impact • Aspirational goals

What impact can we have?

Implement & iterate

• Decision-making filters • Partners monitor & report • Mid-way impact check

‘during’ with LeanData • Clarifying effects & check ToC & targets validity • Data fed into learning and iterative management

Will it be enough impact? Test value of the information we are reporting with our partners.

Endline

• Beneficiary feedback studies with LeanData • Data fed into learning and iterative management • Data shared broadly for scale up models

Post endline

• Beneficiary feedback studies (gather additional data beyond) with LeanData • Review and finalise impact • Data shared broadly for scale up models

Did we generate the desired impact? What have we learnt? Does impact continue? Test value of the information we are reporting with our partners.

6. What type of Investments: Our 8 projects⁹

Four projects in the agriculture sector implemented in Africa (two focusing on Kenya, one on Ghana and one working across multiple countries including Kenya, Zimbabwe, Tanzania and Ethiopia).

Project Title: Building Resilience in Flower Supply Chains Lead partner: Fairtrade Foundation (FT), Fairtrade Africa and MM Flowers Consortium partners: M&S, Co-op, Tesco, FNET, Women Working Worldwide, Coventry University Countries: Kenya

Beneficiaries targeted: Flower farm workers (FT and non FT farms) Key areas of support: The project supported Kenyan flower workers to address the crisis brought on by the COVID-19 pandemic hitting flower sales by meeting their immediate health protection and nutrition needs, but also to promote a more sustainable flower sector and bolster longer-term resilience. Key areas of support: distribution of health packages, setup of kitchen gardens to enable workers to support themselves and their families, awareness raising campaigns on key COVID-19 and nutrition messages, alternative income generating activities with seed funding to workers and farms to pilot diversification/climate smart activities; nutritional gardens set up on the farms to help feed workers; training to support gender equality in relation to the COVID-19 impact. Project Title: Cadbury Farmer Resilience Fund Lead partner: Fairtrade Foundation and Fairtrade Africa Consortium partners: Mondelez Countries: Ghana Beneficiaries targeted: Cocoa farmers, their families and cocoa communities Key areas of support: The project responds to the impact of COVID-19 on Ghanaian cocoa farmers by building on the Mondelēz-funded Cocoa Life Programme to ensure farming families are resilient to the pandemic, and to accelerate and deepen work on income diversification through climate-smart farming. Key areas of support: support to unions and members with income diversification through start-up capital for promising new business models; organisational strengthening activities for unions and their members, on community adaptation, climate smart crops and income diversification and COVID-19 safety training and awareness. Project Title: Securing workers’ rights in a COVID-19 context in East African agriculture and horticulture supply chains Lead partner: Ethical Trading Initiative (ETI) Consortium partners: Partner Africa, Morrisons, Coop, Waitrose, Tesco, Sainsbury’s, Union Roasted, Flamingo, Minor Weir and Willis, MM Flowers Countries: Kenya, Tanzania, Ethiopia, Zimbabwe Beneficiaries targeted: Horticulture farm workers Key areas of support: The project contributes to the building of a more resilient East African flower and horticulture industry that collaborate to increase safe work practices and remain viable during crisis such as COVID-19 pandemic. Key areas of support: Tailored TA support to rebuild farms and create a safe work environment. Dissemination of lessons and good practice within the ETI network & beyond to encourage wider adoption. Project Title: Sea Freight Flowers Lead partner: Flamingo Consortium partners: Practical Solutions International, Wilmar Flowers (other supply chain actors joined since the design: Marginpar Group, Silpack, Kuehne & Nagel and IPL Countries: Kenya Beneficiaries targeted: Flower farms and indirectly their workers Key areas of support: This project aims to prove that sea freight of flowers between Kenya and Europe is feasible, costefficient, sustainable and climate friendly. Key areas of support: Set up protocols for sea freight to be used by the industry; Assessment of Supplier farms for suitability and readiness for sea freight and provide recommendations for improvements; Support across the sea freight value chain to supplier farms, importers, packaging, transporters, shipping companies, offloaders and importers supported to implement protocols for sea freight. Thirteen containers shipped. Learnings documented, including the business case & shared among the industry. Four projects in the garments sector implemented in South Asia (three in Bangladesh and one in Myanmar).

Project Title: Supporting women in the garment industry, earn a living, stay safe and be respected in a COVID-19 environment Lead partner: Ethical Trading Initiative (ETI) Consortium partners: Primark, Marks & Spencer, Tesco, Arco, Mi Hub, New Look, Sainsbury’s Countries: Bangladesh (with learning focus in Pakistan) Beneficiaries targeted: garments workers and other factory staff Key areas of support: Technical Assistance for factory repurposing for 6 factories Knowledge sharing on repurposing best practices with 14 factories OHS training, COVID-19 prevention awareness (utilising digital technology) Expert Support Network (ESN) to share best practices with Myanmar producing brand and wider RMG industry Project Title: “Hidden Supply Chains in Bangladesh” Lead partner: GoodWeave International Consortium partners: Monsoon Accessorize, VF Corporation, Awaj Countries: Bangladesh Beneficiaries targeted: Garments workers (from Tier 1 and Tier 2/subcontractors/informal) Key areas of support: Immediate food and other aid, rapid assessment of ready-to-hire informal workers Supply chain mapping to identify full extent of supply chains Remediation of child and bonded labour if found COVID-19 prevention and legal rights knowledge Sharing best practises with other brands and wider RMG sector Project Title: “Preventing COVID-19 Garment Health Worker and Supply Chain Crisis” Lead partner: CARE Consortium partners: Marks & Spencer, Primark Countries: Bangladesh Beneficiaries targeted: Garments workers, factory health staff, and communities of garments workers Key areas of support: Covid-19 and GBV education for factory workers and community members Training of health champions, health and safety committee members Connection to health resources, setting up Factory Health Corners, 20 satellite clinics, quarantine centres and digital wellbeing centres GBV orientation, training anti-sexual harassment committee, building capacity and awareness for community support groups Vaccination sensitisation, awareness and linkages Scaling up of HALOW+ best practices with addition of OHS modules Project Title: “Bridging the Gap” Lead partner: Impactt Consortium partners: Primark, Women Win Countries: Myanmar Beneficiaries targeted: Garments workers Key areas of support: Cash transfers to 1,500 workers (5000 planed but stopped due to the coup) Technical Assistance and Training provided to 3 factories(planned not implemented due to the coup) Resilience Fund set up to select longer term initiatives (planned not implemented due to the coup) Working group established to share best practises throughout RMG industry (planned not implemented due to the coup)