10 YEARS OF ISEAL ANNUAL REPORT 2012
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CONTENTS
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Foreword by Rik Kutsch Lojenga
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Advocacy
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Welcome from Karin Kreider
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A Hub for Learning
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What We Do / Our Goals
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Coordination on the Rise
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A Global Consensus on Credibility
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Growing the Alliance
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Understanding How to Improve Certification
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ISEAL Members
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Improving our Impacts
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Financials
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Growth of the Sustainability Standards Movement
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ISEAL Secretariat Staff
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Raising the Profile of Sustainability Standards
FOREWORD RIK KUTSCH LOJENGA BOARD CHAIR This was my first year serving as Board Chair, and for ISEAL it was a year of transition and growth, as well as a time to reflect on how far we’ve come since ISEAL was founded in 2002. Ten years ago, the idea of a strong network of standards organisations working to make businesses and supply chains more sustainable was an aspiration; today it is reality. I am so proud that we can talk about a concerted sustainability standards movement committed to credible practices and to delivering social, environmental and economic impact. Ten years ago we were still looking for sustainability standards to be a part of the conversation. With the value of standards now recognised, our sights are set on scale, reach and impact. Entering 2012, 17% of coffee, 9% of forests, and 7% of wild fish landings were certified globally, and new commitments from businesses and governments were pushing us to increase these numbers. Building on our gains in forestry, fishing, and agriculture, as well as engaging with critical sectors such 4
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as energy, extractives and tropical commodities, will require a new level of collaboration and innovation. 2012 reaffirmed how uniquely placed ISEAL is to provide direction to standards systems as they navigate common challenges. ISEAL has been spearheading a deep focus on impacts, which has already put many ISEAL members on a journey to better align their standard with its long-term sustainability objectives. Our project in emerging economies has also revealed the wealth of opportunities for standards to contribute to sustainable development in Brazil, India and China. The year was punctuated with the launch of the ISEAL Assurance Code, and it was hugely satisfying to see a consensus-driven process result in such a useful guide for making certification effective and efficient. One thing that I have taken away from my first year as Board Chair is a sense of unity among ISEAL members – a feeling that we all realise the benefit of having a common platform to improve how we operate
individually and together. While we work in different sectors and even follow different approaches, our efforts are connected by common Credibility Principles, which in 2013 will be captured by the completion of ISEAL’s global consultation. Credible and effective standards systems can work wonders for people and the planet. I look forward to being a part of ISEAL as it enters its second decade of helping credible standards to be recognised, adopted and improved. On behalf of the Board of Directors, I hope you will join us on the road ahead.
Rik Kutsch Lojenga, Board Chair
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WELCOME KARIN KREIDER EXECUTIVE DIRECTOR
I feel so fortunate to be assuming the leadership of ISEAL when our members have so much to celebrate. From the handful of initiatives that tenaciously started this movement a few decades ago, we are now witnessing change at an impressive rate. In some sectors certification has become an expectation in the market-place. Companies of all sizes are making commitments to deeply transform supply chains by engaging with ISEAL members. While established standards systems have become a force in sustainable production and consumption and see their labels appearing on a growing number of products, new standards in areas such as bioenergy, tourism, metals and water are making decisive moves to start penetrating the market. ISEAL is entering its second decade because these diverse initiatives have a shared commitment to demonstrate and improve their impacts on people and the environment. We are the standards systems hub where credibility is 6
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not only defined but also achieved because of a willingness of our members to focus on effectiveness, innovation, and collaboration. Seeing our members begin to internalise the ISEAL Impacts Code was inspiring in 2012. We know that credibility is all about positive impact on the ground. Shortage of rigorous data on impacts from certification does not mean a lack of positive impact and I greatly look forward to when ISEAL as an Alliance can confidently demonstrate the social and environmental difference we are making. With the finalisation of the Assurance Code, we have produced a forward-looking document that articulates what credible certification looks like, while recognising that innovation is needed to ensure access of the smallest producers. It is also promising to see ISEAL sowing the seeds for greater engagement in emerging economies over the last year. The tasks in front of us are many. Stakeholders need guidance on what makes a standard credible, effective
and impactful. We also know that this powerful and practical model - this guidebook to sustainability - can alone not solve the world’s environmental and social challenges. Figuring out how standards interface with other approaches will be essential. The highly anticipated Rio+20 Summit showed us that while multi-stakeholder initiatives are now the norm, we still need to drive businesses and governments to make sustainability a global priority. To start filling in this roadmap, ISEAL embarked on the first phase of a strategic review in 2012 to determine our specific aims for the coming years. I have been pleased to lead this process along with the ISEAL Board, but it has truly been owned by all ISEAL members. With a fresh strategy on the horizon and interest in credible standards growing daily, I am excited about what the next few years hold.
Karin Kreider, Executive Director
2012 marked the end of Dr. Sasha Courville’s tenure as ISEAL’s Executive Director after seven years of dedicated service. We thank Sasha for helping to build the ISEAL Secretariat and fostering a culture of learning and improvement among standards systems.
WHAT WE DO... 8
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ISEAL’S MISSION IS TO STRENGTHEN STANDARDS SYSTEMS FOR THE BENEFIT OF PEOPLE AND THE ENVIRONMENT.
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OUR GOALS Underpinning everything we do is a focus on demonstrating and increasing the positive social and environmental impacts of standards systems.
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THE FOUR GOALS OF THE ISEAL ALLIANCE ARE TO: • D emonstrate and improve the impacts of standards systems • Improve the effectiveness of standards systems • D efine credibility for sustainability standards • Increase the adoption of credible standards systems
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Rochelle Zaid (Vice‐Chair) Social Accountability Accreditation Services
Britta Wyss Bisang UTZ Certified
David Agnew Marine Stewardship Council
OUR BOARD
Kim Carstensen Forest Stewardship Council
ISEAL BOARD OF DIRECTORS AS OF 31 DECEMBER 2012 Mauricio Voivodic (Vice‐Chair) Rainforest Alliance / Sustainable Agriculture Network
David Crucefix IOAS
Ruediger Meyer Fairtrade International
Guntars Laguns Accreditation Services International Rik Kutsch Lojenga (Board Chair) Union for Ethical BioTrade
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A SPECIAL THANKS... to Andre de Freitas of the Forest Stewardship Council who served as Board Chair for three years and to Simon Hunt of Fairtrade International whose Board service ended in 2012.
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ISEAL STAKEHOLDER COUNCIL Jan Bernhard Pronatur Daniela Mariuzzo Rabobank Brazil Mireille Perrin Decorzent WWF International Carsten Schmitz‐Hoffmann Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH Jan Kees Vis Unilever Tensie Whelan Rainforest Alliance
“Responsible businesses value the social and environmental expertise that certification organisations offer.” Fiona Wheatley, Marks and Spencer
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ISEAL MEMBERSHIP COMMITTEE Oliver Bach Rainforest Alliance / Sustainable Agriculture Network Lisa Bernstein Social Accountability Accreditation Services Sรถnke Fischer Accreditation Services International Rochelle Zaid* Social Accountability Accreditation Services *Designated Board Liaison
A SPECIAL THANKS... to the ISEAL Membership Committee members whose service ended during 2012: Alison Kriscenski Forest Stewardship Council
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A GLOBAL CONSENSUS ON CREDIBILITY In 2012 we embarked on a far‐reaching process to capture the collective knowledge of the global standards community on the concepts that increase the likelihood that a standards system will achieve positive impact. Once complete, the ISEAL Credibility Principles will be the first multi‐ stakeholder articulation of the core values upon which effective and high quality standards systems are built. Our aim is for the ISEAL Credibility Principles to be an international reference that influences how governments and businesses engage with standards
and shows standards themselves what to strive for to deliver impact. Led by a diverse, expert Steering Committee tasked with bringing the ISEAL Credibility Principles to fruition, the second draft of the principles underwent a 60‐day public consultation that included workshops in Washington DC, London, São Paulo, Beijing and New Delhi with a total of 200 in‐person participants. More than 400 comments were received through workshops and interviews as well as online surveys and electronic forms that were made available in Mandarin, French, Portuguese and
Spanish. Our Credibility Principles video, which received close to 1,200 views, helped ISEAL reach a diverse cross‐section of stakeholders affected by sustainability standards. Following a second consultation in early 2013, the Credibility Principles will be launched at the next ISEAL conference. “Our credibility starts with our standard, which undergoes a rigorous review every five years in which extensive stakeholder consultation plays the most central role.” David Agnew Marine Stewardship Council
ISEAL’s Credibility Principles developed in partnership with
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ISEAL CREDIBILITY PRINCIPLES SUSTAINABILITY
RELEVANCE
ENGAGEMENT
IMPARTIALITY
ACCESSIBILITY
TRUTHFULNESS
RIGOUR
EFFICIENCY
TRANSPARENCY
IMPROVEMENT
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UNDERSTANDING HOW TO IMPROVE CERTIFICATION ISEAL believes that certification will look very different in the future. We need models that are scalable while maintaining the integrity required by the market. We need processes that answer simple questions: Does the enterprise meet the intent of the standard? How can we focus resources on enterprises with the highest risk of non‐compliance? How can we ensure the consistency and competence of auditors? Overseen by multi‐stakeholder steering and technical committees through an 18‐month development process that included two rounds of public consultation, the ISEAL Assurance Code was published in December and serves as a guide to
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credible assurance. The consultation generated more than 1,000 comments from almost 90 individuals and deeper interviews were conducted with 40 stakeholders. The Code also underwent field testing by twelve ISEAL members and a formal approval process with the ISEAL Stakeholder Council. The Assurance Code outlines how standards systems can integrate essential principles of transparency, impartiality, and competence into their work. While adherence to the Code will be an ISEAL membership requirement, the Code also reflects ISEAL’s growing focus on learning and improvement with the inclusion of aspirational criteria. It speaks to the core responsibilities of standard‐setters
and accreditation bodies with respect to implementing sustainability standards, but recognises that assurance is an area of innovation where users need to experiment with different approaches. With a robust Code, a flourishing Assurance Community of more than 300 professionals and plans for constructive peer review, ISEAL is at the forefront of developments in assurance that will add value in the market. “The ISEAL Codes are widely recognised by private companies and public entities as the measure of credibility for social and environmental standards.” 4C Association
ISEAL CODES OF GOOD PRACTICE 窶｢ Standard窶心etting Code (2004) 窶｢ Impacts Code (2010) 窶｢ Assurance Code (2012)
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IMPROVING OUR IMPACTS Demonstrating and improving impacts are top requirements for standards systems to maintain credibility and expand their uptake. This year ISEAL members took tangible steps in implementing the ISEAL Impacts Code that is both an ISEAL membership requirement and a learning tool. The Code provides the building blocks for developing a strong monitoring and evaluation system capable of comparing real performance against sustainability aims. A major success in 2012 was the peer learning that took place amongst almost 60 participating staff from ISEAL member organisations as they supported each other to make monitoring and evaluation results the basis for improving the effectiveness of their respective standards.
PATHWAYS TO POVERTY IMPACT The Demonstrating and Improving Poverty Impacts project, supported by the Ford Foundation, reached important milestones in its goal to demonstrate and improve the
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contribution of certification to poverty reduction. Participating ISEAL members agreed upon six “Pathways to Impact” on human well‐being that certification contributes to. They also agreed on a set of common poverty indicators, developed a research agenda, began to integrate monitoring and evaluation into their business models and committed to collective reporting in the future. As we enter the second phase of the project during which we will conduct regional demonstration projects to assess effects on farmer income, assets and empowerment, there is a strong foundation in place for standards systems to strengthen the connection between their work and their objectives to bring farmers and workers out of poverty.
“Standard systems should first be aware of what they are trying to achieve.” Yalmaz Siddiqui, Senior Director of Environmental Strategy, Office Depot “We’re interested in exploring ways to collaborate with other ISEAL members to accomplish more through our collective impact.” Nina Smith, GoodWeave
ISEAL’S IMPACTS CODE FOSTERS: • Increased results‐orientation • G reater openness and transparency • I mproved effectiveness in achieving sustainability objectives • B etter accountability to donors, companies, and producers
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Rainforest Alliance certifies its first farms Forest Stewardship Council is born Labour standards based on ILO Conventions emerge Unilever and Chiquita among the first big companies to commit to standards IKEA and Home Depot pioneer retailer preference for FSC certified wood A group of standards collaborate on Social Accountability in Sustainable Agriculture project
YEAR 1970s First Fairtrade label, Max Havelaar, is launched
Standards for organic agriculture begin to organise and unite
GROWTH IN THE SUSTAINABILITY STANDARDS MOVEMENT
88 92 93 97 97 99 2001
Multi‐stakeholder roundtables on sugar, palm oil and biofuels signal new generation of standards Independent accreditation bodies for providing oversight in certification begin to form Walmart commits to sourcing MSC certified fish for all of its fish sold in North America Industry‐wide platforms such as the Global Social Compliance Programme begin to recognise standards Online tools such as GoodGuide start to inform consumers about standards Standards expand to new sectors such as tourism, extractives, aquaculture and water FSC certified forests worldwide reach 100 million hectares UTZ Certified delivers traceability services to new certification programmes Standards in areas such as biodiversity, mining and coffee develop new models Mars pledges to source certified cocoa for entire supply chain by 2020 Retail sales of Fairtrade products reach more than €4 billion RSB and Bonsucro recognised by EU McDonald’s announces all fish sold in Europe to be MSC certified FSC and Fairtrade each collaborate with Gold Standard to help producers access carbon markets ISEAL celebrates ten years of our Alliance
“THE BIGGEST CHANGE IN THE PAST TEN YEARS IS THAT TODAY WE’RE TALKING ABOUT A MOVEMENT OF SUSTAINABILITY STANDARDS. THAT SPEAKS TO THE GLOBAL INFLUENCE STANDARDS NOW HAVE.”
04 05 06 06 07 08 08 08 09 09 10 10 11 12 12
Patrick Mallet, ISEAL Credibility Director
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RAISING THE PROFILE OF SUSTAINABILITY STANDARDS Globally we have only begun to scratch the surface of what sustainability standards can do for sustainable development, so in 2012 ISEAL launched a ground‐breaking three‐ year partnership with the Swiss State Secretariat for Economic Affairs (SECO) to scale up the use of sustainability standards in emerging economies and in public procurement. Our workshops in New Delhi, Beijing and São Paulo brought together more than 150 diverse leaders and demonstrated ISEAL’s ability to provide a collaborative and expert platform for engagement. Our outreach reinforced the timeliness of awareness‐raising about core elements of credible standards and how standards can be used by the public and private
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sector to achieve sustainability objectives. As such, activities to build relationships with key organisations and establish much valued peer networks of standards practitioners defined the first year of the project.
GAINS IN EMERGING ECONOMIES In the latter half of 2012 we held more than twenty targeted meetings and workshops, which allowed us not only to lay the groundwork for strong networks to emerge, but also to appreciate the opportunities and challenges in each country. In China our work centred on building partnerships with government, business and civil society to understand
how multi‐stakeholder standards systems can support economic prosperity in the country along with positive social and environmental outcomes. In India we have been working to communicate the business and impacts case for sustainability standards and to promote how credible national and international standards can be mutually beneficial. In Brazil we facilitated constructive engagement within the finance and NGO sectors and began structured discussions on how to build sustainable value chains at the domestic level. Even in these early stages, our efforts to increase awareness have resulted in promising cooperation between credible standards and standards users in each of these countries.
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ADVOCACY ISEAL scans the horizon for developments that might affect how sustainability standards operate, and represents credible standards systems on issues of common interest. ISEAL’s distinctive role was especially important in communicating a strong and united message at the Rio+20 Earth Summit on behalf of credible standards systems. As world leaders gathered to re‐focus their commitments to sustainable development, ISEAL mobilised a collective call to action for certification to be recognised as an effective tool with the power to catalyse the green economy. ISEAL ensured that its members had a visible presence at the Summit and we were pleased to see the endorsement of multi‐ stakeholder initiatives feature so prominently in discussions.
Other examples of ISEAL’s policy and advocacy work include: • A submission to the European Commission recommending accurate recognition of international accreditation bodies with respect to a regulatory review. • P articipation in on‐going European efforts to create a baseline cocoa standard so that the interests and expertise of internationally accepted standards are reflected.
WHAT OUR STAKEHOLDERS ARE SAYING “I truly believe that in the advocacy space ISEAL brings significant value to its members.” “ISEAL is advantaged by having so much expertise convened within the broad organisation of members.” “Advocacy is a high priority.”
• A ctive input into industry‐ led initiatives to benchmark sustainability standards to ensure that such comparisons are fair and distinguish credible practice.
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A HUB FOR LEARNING ISEAL provides expert information and a platform for innovation in the sustainability standards movement. This year we used the launch of new multimedia tools and a refreshed website to solidify our place as a learning hub. Through the support of GIZ, we produced a series of animated videos explaining the essentials of credible standards systems in an imaginative and educational way. The videos have received more than 2,000 views and much praise for the clarity and energy with which they convey the core ideas of sustainability standards.
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Our online community is becoming a go‐to place for learning the latest about sustainability standards, filled with interviews, news stories, blog posts, upcoming events and job listings. ISEAL members and subscribers also use the online community to access exclusive technical resources, webinars, and expert analyses on the most pressing issues facing standards systems, and to interact virtually with ISEAL Alliance colleagues on subjects such as impacts and assurance.
BEYOND THE 10%: ISEAL’S ANNUAL CONFERENCE ISEAL’s annual conference is a preeminent event where influential standards systems meet with leading businesses, government representatives, and NGOs, all passionate about the positive difference that standards can make. 175 participants, including representatives from all ISEAL’s member organisations, gathered in Bonn for the 2012 edition. Across three days we discussed how standards systems can build on their solid foundation and reach a new level of impact by working with the growing cross-section of groups that now look to them.
How Agriculture and Forestry Standards Contribute to Human Well-Being
Standard
Technical Training Organisational Development
Further Training
Enteprises & Producers
Additional Inputs Workers
urce Resogement Mana
ction
Produ
ess Businence Resili
p Grougth Stren
ur Labo Rights
Community
unity nt Comm opme Devel
HOSPITAL
SCHOOL
New Markets
External Inuence
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COORDINATION ON THE RISE ISEAL members collaborate and recognise each other’s systems to improve efficiencies, benefit from new expertise, expand accessibility, or achieve shared goals. As a learning hub where standards organisations can interact, ISEAL makes it easier for our members to work together. In 2012 we were proud to see progress within ISEAL‐led working groups exploring coordination on joint audits, banned pesticides and smallholder access, and living wage. In this spirit, ISEAL members are also working in their own groups on different initiatives and we commend these independent achievements in collaboration, among many others, seen in 2012: • A ccreditation Services International became the accreditation provider for Aquaculture Stewardship Council and Roundtable on Sustainable Palm Oil.
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• T he Sustainable Agriculture Network (SAN), Rainforest Alliance and IOAS launched the SAN/ RA Accreditation Program.
• F airtrade International joined Rainforest Alliance/SAN and UTZ Certified as members of the 4C Association.
• T he first dual FSC and Fairtrade labelled wood products appeared on the market.
• R esponsible Jewellery Council (RJC) recognised the Fairtrade and Fairminded Standard for Gold from Artisanal and Small‐ scale Mining as a Responsible Mining Standard under RJC chain‐of‐custody certification.
• R oundtable on Sustainable Biomaterials recognised Rainforest Alliance Certified farms to bring the benefits of certification to more farmers, producers, and companies. • M arine Stewardship Council and Aquaculture Stewardship Council (ASC) partnered on chain‐of‐custody certification for ASC certified fish to add efficiency to supply chains. • R oundtable on Sustainable Palm Oil (RSPO) and UTZ Certified launched RSPO eTrace, the improved traceability system for administering the trade in certified sustainable palm oil.
• R ainforest Alliance, Max Havelaar and UTZ Certified advised the Dutch State Secretary for Infrastructure and the Environment to include additional social conditions in the sustainable procurement policy of the Dutch government.
“ONE OF THE MOST VALUABLE CONTRIBUTIONS OF ISEAL MEMBERSHIP IS THAT IT ENABLES POSSIBLE COLLABORATIONS AND LEARNING FROM OTHER ORGANISATIONS.” Social Accountability Accreditation Services
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GROWING THE ALLIANCE ISEAL membership is open to all multi‐stakeholder sustainability standards and accreditation bodies that demonstrate their ability to meet the ISEAL Codes of Good Practice and accompanying requirements, and commit to learning and improving. This year we saw our membership grow to thirteen full members and six associate members. We congratulate GoodWeave and the Responsible Jewellery Council on their successful transition to full membership by meeting the requirements of the Standard‐Setting Code. The ISEAL Alliance has never been more diverse, and members truly represent a cross‐section of the sectors in which the promotion of socially and environmentally sustainable practices is critical. This year we welcomed new associate members the Global Sustainable Tourism Council, Roundtable on Sustainable Palm Oil, Aquaculture
Stewardship Council, and Equitable Origin. To qualify for associate membership, organisations must demonstrate that their scope, governance, and practices align with the ISEAL Credibility Principles, and that they have strong systems in place that will enable them to comply with the ISEAL Codes of Good Practice within a set timeframe.
“WWF works with leading global certification systems to help protect the world's most important nature from the negative impacts of commodity production. Full ISEAL membership is one of WWF’s key requirements for credible certification schemes.” Richard Holland, WWF Market Transformation Initiative Director
To foster a vibrant learning community, ISEAL also has a subscriber category (formerly called affiliate), which brings together standard‐setters, NGOs, businesses and researchers that want to learn more about credible standards systems. Unlike ISEAL membership, there are no formal compliance requirements to become a subscriber. Our subscriber base now includes 45 individuals and organisations, including groups involved in developing standards for water, carbon, organics, textiles, renewable energy and responsible investment.
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ISEAL FULL MEMBERS Accreditation Services International is one of the world’s leading accreditation bodies, assessing organisations that issue certificates for a range of standards to ensure that audits are conducted with competence and global consistency. ASI is the sole accreditation body for the Forest Stewardship Council, the Marine Stewardship Council, the Aquaculture Stewardship Council and the Roundtable on Sustainable Palm Oil. Fairtrade International represents 25 organisations working to secure a better deal for farmers and workers by setting international Fairtrade Standards and developing the global Fairtrade strategy. Its mission is to connect disadvantaged producers and consumers, promote fairer trading conditions, and empower producers to combat poverty, strengthen their position and take more control over their lives. Forest Stewardship Council is a global, not‐for‐profit organisation that promotes environmentally appropriate, socially beneficial, and economically viable management of the world's forests. It facilitates the development of standards and ensures monitoring of certified operations, and the FSC trademarks ensure consumers that the products they choose come from well managed forests. GoodWeave works through its certification program to end child labour in the carpet industry and to offer educational opportunities to children in Nepal, India and Afghanistan. The organisation’s market‐ based model works on the premise that if enough people demand certified child‐labour‐free rugs, manufacturers will employ only skilled, adult artisans, and children will no longer be exploited in the carpet industry. IOAS is a non‐profit organisation dedicated to the integrity of ecolabel claims in the field of organic and sustainable agriculture, environmental management, social justice and fair trade. It works internationally to assess the competence of organisations providing certification to sustainability standards. IOAS is the accreditation body for the IFOAM Family of Standards as well as SAN standards.
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Marine Stewardship Council sets standards for sustainable fishing and seafood traceability. It aims to use its ecolabel and fishery certification programme to contribute to the health of the world’s oceans by recognising and rewarding sustainable fishing practices, influencing the choices people make when buying seafood, and working with partners to transform the seafood market to a sustainable basis. Sustainable Agriculture Network (SAN) is a coalition of independent non‐profit conservation organisations that promote the social and environmental sustainability of agricultural activities by developing standards. Farms and group administrators that comply with SAN standards can apply to use the Rainforest Alliance Certified™ seal for products grown on their certified farms. Rainforest Alliance works to conserve biodiversity and ensure sustainable livelihoods by transforming landuse practices, business practices and consumer behaviour. Working in sustainable agriculture, forestry, climate and tourism, it links businesses meeting certain environmental and social standards with the global marketplace, where demand for sustainable goods and services is on the rise. Responsible Jewellery Council is an international, not‐for‐profit organisation established to reinforce consumer confidence in the jewellery industry by advancing responsible business practices. Its mission is to advance responsible ethical, social and environmental practices, which respect human rights, throughout the diamond, gold and platinum group metals jewellery supply chain, from mine to retail. Roundtable on Sustainable Biomaterials aims to provide and promote the global standard for socially, environmentally and economically sustainable production and conversion of biomass by bringing together farmers, companies, non‐governmental organisations, experts, governments, and inter‐governmental agencies concerned with ensuring the sustainability of biomaterials production and processing.
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ISEAL FULL MEMBERS ACCR
E
AC
V
L
ATION SER
COUNT
IT
AB
ITY
D
IL
Social Accountability Accreditation Services supports social responsibility and accountability by ensuring the implementation of credible systems designed to protect people and their communities. As recognition that audit programs must be of high quality, SAAS evaluates and accredits auditing organisations to assure they are qualified to hold their clients accountable to social standards.
IC
ES
SOC
IA
Union for Ethical BioTrade is a non‐profit association that promotes the ‘Sourcing with Respect’ of ingredients that come from biodiversity. Members commit to gradually ensuring that their sourcing practices promote the conservation of biodiversity, respect traditional knowledge and assure the equitable sharing of benefits all along the supply chain. UTZ Certified is one of the largest sustainability programmes for coffee, cocoa and tea in the world. Itimplements a worldwide programme for socially and environmentally responsible agricultural production and sourcing and aims to make sustainable commodities available to the majority of consumers by working together with manufacturers and retailers. 4C Association is a multi‐stakeholder organisation of actors committed to addressing the sustainability issues of the coffee sector in a pre‐competitive manner. It aims to unite all relevant coffee stakeholders in working towards the improvement of the economic, social and environmental conditions of coffee production andprocessing to build a thriving, sustainable sector for generations to come.
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ISEAL ASSOCIATE MEMBERS Aquaculture Stewardship Council’s mission is to transform aquaculture towards environmental sustainability and social responsibility using efficient market mechanisms that create value across the chain. It aims to be the world’s leading certification and labelling programme for responsibly farmed seafood. Alliance for Water Stewardship is a collaboration amongst some of the world’s leading players in sustainable water resource management who are committed to driving collective responses to shared water risk through the stakeholder‐endorsed International Water Stewardship Standard. Bonsucro fosters the sustainability of the sugarcane sector through a metric‐based certification scheme that is independently verified as sustainable. Bonsucro works with its members to support the continuous improvement of the industry. Equitable Origin runs a stakeholder‐based voluntary certification system designed to promote higher social and environmental standards, greater transparency and more accountability in oil and gas exploration and production. Global Sustainable Tourism Council serves as the international body for fostering increased knowledge and understanding of sustainable tourism practices, promoting the adoption of universal sustainable tourism principles and building demand for sustainable travel. Roundtable on Sustainable Palm Oil aims to transform markets to make sustainable palm oil the norm, advancing the palm oil sector through the use of credible standards, the monitoring and evaluation of impacts, and the engagement of all stakeholders throughout the supply chain.
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FINANCIALS
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FINANCIAL SUMMARY As of 31 December 2012 ‐ unaudited with comparative audited totals for financial year 2011.
INCOME (IN EUROS)
2011
2012
Membership
130,000
212,000
Government
783,000
1,100,000
Foundation
448,000
867,000
Other Income
40,000 1,361,000
2,219,000
Credibility Programme
193,000
350,000
Learning and Membership Programme
224,000
565,000
Policy & Outreach Programme
171,000
436,000
Scaling Up Programme
180,000
EXPENDITURE
Communications Project
265,000
Organisation • Monitoring & Evaluation, Information Technology • Communications • Development and Fundraising • Finance, Operations and Governance
35,000 106,000
54,000
80,000
64,000
172,000
192,000 83,000
• Strategic Planning
1,161,000
2,009,000
164,000
240,000
1,325,000
2,249,000
36,000
-30,000
Reserves at Start of Year
258,000
294,000
Reserves at End of Year
294,000
264,000
INDIRECT COSTS
Deficit or Surplus
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INCOME
EXPENSES
2% Other income
20% Organisation
9% Membership
17% Credibility
50% Government
28% Learning & Membership
39% Foundation
22% Policy & Outreach 13% Communications Project
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FINANCIALS ISEAL’S FINANCE COMMITTEE Jeremy Anglin Marine Stewardship Council Richard Cook Social Accountability International Simon Hunt Independent Britta Wyss Bisang UTZ Certified (Chair) Thomas Mueller‐Bardy 4C Association Ron van Leeuwen UTZ Certified Bertjan Bouman Union for Ethical BioTrade
A SPECIAL THANKS Jeremy Anglin served on ISEAL’s Finance Committee from 2006 until 2012 and has been an invaluable and enthusiastic source of information and advice throughout that period.
We are very appreciative of his time, dedication, and experience and of the value that he has added to ISEAL’s financial management.
FUNDING PARTNERS We are extremely grateful to our donors, partners and other supporters, whose funding, ideas and encouragement is crucial to everything that we do. For the 2012 financial year we received generous support from the following institutions: • D eutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH • Ford Foundation • H umanist Institute for Development Cooperation (Hivos) • The Overbrook Foundation • T he David and Lucile Packard Foundation • S tate Secretariat for Economic Affairs, Switzerland (SECO) • Unilever • The Walton Family Foundation
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ISEAL SECRETARIAT STAFF AS OF 31 DECEMBER 2012
Paddy Doherty Code Development Manager
Amy Jackson Senior Credibility Manager
Marta Maireles González Monitoring & Evaluation Coordinator
Rosie Forsyth Senior Community Support Coordinator
Kristin Komives Senior Monitoring & Evaluation Manager
Patrick Mallet Credibility Director
Natalie Gawor Programmes Assistant Karen Halvey Senior Finance Coordinator Alke Healey Human Resources & Operations Manager
Lara Koritzke Director of Development & Communications Karin Kreider Executive Director
Marcus Nyman Policy & Outreach Coordinator Norma Tregurtha Senior Policy Manager Philip Wilson Finance & Operations Director
Jason LaChappelle Communications Coordinator
PHOTOGRAPHY We would like to thank all members that provided photography for this report. Cover and pages 5, 14-15, 22 and 31 © Marine Stewardship Council Inside cover and page 19 © Marta Maireles González for ISEAL Alliance Pages 13, 21 and 26 © UTZ Certified Pages 9 and 11 © Sue Bruce for Rainforest Alliance Pages 17, 32 and 40 © Donald Bason for Rainforest Alliance Page 25 © David Dudenhoefer for Rainforest Alliance Page 38 © Exmouth Mussels Ltd / Marine Stewardship Council 42
ANNUAL REPORT 2012
OUR COVER The Scottish Pelagic Sustainability Group (SPSG) was established in 2007 and represents all sectors of Scotland’s pelagic industry, from catching and processing, to marketing. It was created specifically to oversee the certification of North Sea herring and Western mackerel as sustainable to the Marine Stewardship Council (MSC) standard. Since the inception of the SPSG in 2007 98% of the group’s stocks have been certified as sustainable and well managed by the MSC. © Marine Stewardship Council Certified. Writer: Jason LaChappelle Editor: Lara Koritzke Design: Michelle Doust www.behance.net/michelledoust ANNUAL REPORT 2012
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