MEASURING IMPACT IN CACAO PRODUCTION SUMMER ALLEN SUSTAINBILITY: - - PowerPoint PPT Presentation

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MEASURING IMPACT IN CACAO PRODUCTION SUMMER ALLEN SUSTAINBILITY: - - PowerPoint PPT Presentation

Dec 30, 2022 139 likes •439 views

MEASURING IMPACT IN CACAO PRODUCTION SUMMER ALLEN SUSTAINBILITY: RELEVANT OR USEFUL? RESILIENCE Focused on resistance to and recovery from shocks (Rodriguez-Niki, 2015). TRIPLE BOTTOM LINE Idea that a business should have a social and

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MEASURING IMPACT IN CACAO PRODUCTION

SUMMER ALLEN

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RESILIENCE

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TRIPLE BOTTOM LINE

Focused on resistance to and recovery from shocks (Rodriguez-Niki, 2015). “development that meets the needs of the present without compromising the ability

  • f future genera8ons to meet their own needs.”
  • Bruntland Commission Report “Our Common Future”

SUSTAINABILITY

SUSTAINBILITY: RELEVANT OR USEFUL?

Idea that a business should have a social and environmental boJom line as well as economic (Elkington 1998). Scope tends to be limited (Rodriguez-Niki, 2015).

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HISTORY OF SUSTAINABILITY AS A CONCEPT

  • The Bruntland Commission report published in 1987, Our Common Future, discussed

the links between development and the environment including social issues.

  • ‘Sustainability’ can be viewed as a framework for evaluaUng the long-term effects of

human acUons.

  • Sustainability is the foundaUon of the United NaUons 2030 Agenda for Sustainable

Development and its Sustainable Development Goals (SDGs) (IISD).

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SUSTAINABILITY

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Graphic Source: Authors’ adapta8on from FAO (2013)

Social Goals Environmental Goals Economic Goals

Efficiency Incomes EducaUon Resilience Profit Healthy Ecosystem Reduced Loss

Sustainability is a system in which goals can work together to assure that all sectors remain viable and healthy. Ex: water quality

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CHALLENGES FOR ACHIEVING SUSTAINABILITY

  • Global Issues: Climate change, resource depleUon/degradaUon, populaUon growth,

and inequality.

  • Values and behavior: A change in values is needed to limit overuse and move

towards sustainability (Limits to Growth, 1972).

  • Measurement: Complicated as it transcends sectors and Ume periods in which we
  • ben work.

The only way to assure sustainable management of resources is through measurement

  • r at the least, targeted observa8ons over 8me.

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MEASUREMENT

  • Improves efficiency and effecUveness of programs
  • Assures a resilient supply chain
  • Provides informaUon for donors, boards, and

consumers

  • IdenUfies boJlenecks
  • Supports progress across all realms (people,

planet, and profit)

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MEASURING SUSTAINABILITY

Ø Metrics obtained through: Ø Interviews with producers organizaUons Ø Surveys with producing households Ø Tracking prices and quanUUes over Ume Ø QualitaUve measures of community projects and producUon over Ume Ø There are many ways of tracking what is (or isn’t) sustainable, with some more effecUve than others.

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ECONOMIC INDICATORS

  • Rural incomes
  • Poverty measures (various)
  • Access to salaried employment
  • Long-term contracts or opportuniUes
  • Savings and credit opportuniUes
  • Agricultural producUvity and growth
  • Price paid/received and price volaUlity
  • Capacity development
  • Quality measures
  • Inequality

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SOCIAL INDICATORS

  • Labor rights
  • Gender equality
  • Community development
  • Wages
  • Work with marginalized communiUes
  • Living and working condiUons
  • (water, educaUon, sanitaUon)
  • Food security and nutriUon

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ENVIRONMENTAL INDICATORS

  • Soil health
  • Water use and quality
  • Biodiversity
  • Use of chemicals
  • Tree cover
  • Carbon sequestraUon and miUgaUon

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BRIEF OVERVIEW OF PRIORITIES AND REPORTING

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PRIORITIES OF CERTIFYING AGENCIES/CORPORATE SUST. PROGRAMS

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CERTIFYING AGENCIES:

  • UTZ
  • Rainforest Alliance
  • Fair Trade(FLO)
  • USDA organic

CORPORATE SUSTAINABILTY PROGRAMS:

  • Cocoa AcUon (World Cocoa

FoundaUon)*

  • Cocoa Life (Mondelēz)
  • Forever Chocolate (Barry

Callebaut)

*Barry Callebaut, Cargill, Ferrero, Hersheys, Mars, Mondelēz, Nestlé, and Olam. 0% 20% 40% 60% 80% 100%

Ecological PracUces Price>CommodityPrice Quality/Flavor Traceability Community Development Producer Org or Trg Farm producUvity/mgmt Child Labor/Labor Rights Female ParUcipaUon

% of Corporate Sust. Programs % of cerUfying agencies

Informa8on compiled from company reports by Kers8n Ross, FCCI

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PRIORITIES OF SPECIALITY CHOCOLATE COMPANIES

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Includes: Askinosie Dandelion Equal Exchange Felchlin Chocolate Gui\ard Chocolate Madecasse Chocolate Taza Chocolate Theo Chocolate TCHO Chocolate Valrhona Chocolate Zo\er Chocolate Informa8on compiled from company reports by Kers8n Ross, FCCI

A few prioriUes are assumed due to exisUng cerUficaUon and not explicitly stated: child labor, traceability and ecological pracUces.

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Ecological PracUces Price>CommodityPrice Quality/Flavor Traceability Community Development "Direct" RelaUonship CerUfied Producer Org or Trg Farm producUvity/mgmt Child Labor/Labor Rights Female ParUcipaUon

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REPORTING AND TRANSPARENCY

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TAZA Commitments:

  • Direct RelaUonship (visits verified)
  • Premium of ≥ $500/tonne above

NYICE; floor of $2,800

  • Quality (≥75% fermentaUon & ≤7%

moisture)

  • USDA CerUfied Organic
  • Annual Transparency Report

Source: hJps://www.tazachocolate.com/pages/taza- direct-trade

Valrhona: LT partnerships in 11 countries 17 community projects since 2012 Responsible Purchasing Charter Goals for reducing energy & water consumpUon Working on agroforestry project Theo: Third Party AudiUng Quality Premiums Transparency: Cocoa Pricing SpecificaUons Fair Trade and Organic Regular Visits

hJps://www.valrhona-chocolate.com/commitment hJps://www.theochocolate.com

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SUFFICIENCY OF PRIORITIES IDENTIFIED

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While these prioriUes stated are necessary for business planning, are they sufficient? …It depends… What is the ulUmate goal? If goal is understanding the supply chain and changes in that supply chain across the social, economic, and environmental sectors, consistent observaUon of these sectors and how they reflect the prioriUes is necessary. If the goal is communicaPng impact or assuring the model is “sustainable” to consumers or targeUng specific concerns they have, clear indicators and measurement is also necessary.

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CREDIBILITY CONUNDRUM

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  • The issue with any claim by any product or service is the assumpUon of credibility.
  • Findings generally show that cerUficaUon leads to very heterogenous effects within and

among villages, based upon how producers respond; challenges faced by producers are

  • ben downplayed (Ruben, 2017).
  • Consumers are reaching burnout and are more skepUcal about standards.

“The Fair Trade Scandal: MarkePng Poverty to Benefit the Rich.” (2014) Ndongo Samba Sylla.

  • [Based upon the book’s findings] “The fair-trade labelling movement has been more about

easing consciences in rich countries than making serious inroads into poverty in the developing world.”—The Economist

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METHODS OF ASSURING IMPACT OR PROGRESS

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ISEAL ALLIANCE

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  • To address the credibility of parUcular standards, ISEAL Alliance provides some guidance.
  • ISEAL has set up principles for standard systems that target parUcular goals and provide

trainings.

  • There is a strong focus on poverty reducUon
  • Connect with other indicators such as COSA, SSI, FAST, IRIS indicators measuring:
  • Progress of producer groups along the outcome pathways
  • Household-level impacts
  • The major standard bodies are members of ISEAL.
  • ISEAL also conducts some studies on progress and producer needs through external

funding.

Source: h\ps://www.isealalliance.org/

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SELECT UTZ INDICATORS

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Source: h\ps://utz.org/wp-content/uploads/2015/12/UTZ-program-indicators-version-4-2017.pdf

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UTZ EXAMPLE

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  • Wageningen published this year research from the Ivory Coast and financed by UTZ, IDH and

Nestlé (Ingram, et. al 2018).

  • While they did find higher incomes for cerUfied farmers, the authors found that incenUves are

insufficient to moUvate cacao value chain shibs towards sustainability; support for resilience is needed.

  • CerUficaUon, training, and services together, however, does have an impact on producUvity and

incomes.

  • Services (access to credit, ferUlizers, etc) and training packages should be tailored to the needs of

the producers.

Source: h\p://library.wur.nl/WebQuery/wurpubs/538747

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LESSONS

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  • Tracking standards requires oversight and financing
  • All of these principals (for example, the measurement of sustainability) are defined by

the standard so there remains a gap in transferability.

  • Outside of these standards, tracking sustainability in terms of social, economic, and

environmental goals is expensive and Ume-consuming.

  • Consumers can view reports covering a range of indicators; oben unclear on what

should be a concern for them in their purchases.

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COMMITTEE ON SUSTAINABILITY ASSESSMENT (COSA)

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  • Comprehensive list of social,

environmental, and economic indicators

  • Primarily works with large projects

to track a variety of indicators.

  • Demand-driven and funded by

external donors or organizaUons.

  • Requires planning, funding, and

control in the producing areas.

Source: COSA Measuring Sustainability report

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EXAMPLES OF INDICATORS

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Source: COSA Measuring Sustainability report

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INDICATORS

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What are issues of concern? Ex: poverty What are the metrics for analyzing these issues? Ex: household incomes, etc. What are appropriate the limits and Ume horizon? Ex: annual, seasonal, adult household members How much will uncertainty or unknown factors influence assumpUons?

  • Ex. Crop loss, sickness, urgent family needs, local conflict, drought/pests

Adapted from Rodriguez-Nikl (2015)

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REPORTING ON INDICATORS (SOME EXAMPLES)

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INDICATOR MEASUREMENT EXAMPLES LEVEL of MEASUREMENT TIME PERIOD

Incomes Total producUon, Non-farm work, Expenditures Household Annually Prices Price Level and VolaUlity Household/Village Season, over Ume Food Security Measurement of Hunger and ProducUon

  • f/Access to Food Crops

Household/Individual (Women/Children) Seasonally and Annually Biodiversity Species diversity/ Crop Cover Field/Plot level MulU-year Gender Empowerment of Women Individual/Producer Groups Annually Living Standards Water Access and Quality/SanitaUon/ Housing Materials and Infrastructure Household/Farm-level Annually EducaUon Training/EducaUonal OpportuniUes Household/Producer OrganizaUons Annually Child Labor Farm/Household QuesUonnaires; Monitoring Household/Producer OrganizaUons/ Farm-level ObservaUon Annually

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OPPORTUNITIES

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  • Most specialty cacao used by small-scale chocolate producers is sourced from the following
  • rigins:

Madagascar, Dominican Republic, Peru, Ecuador, Bolivia and Belize

  • AddiUonal sourcing from the following origins:

Guatemala, Venezuela, Tanzania, Papua New Guinea, Trinidad, HaiU, Philippines, Costa Rica, Congo, Colombia, Brazil, Nicaragua, Vietnam, Mexico and Honduras

  • Given the similar origins, speciality buyers could perhaps parUcipate in joint tracking on

common indicators.

  • Oversight is needed and could be managed by FCCI to avoid conflicts of interest and

separaUon from any parUcular standard.

Source: FCCI: h\ps://chocolateins8tute.org/blog/sizing-the-cram-chocolate-market/

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REFERENCES

  • COSA. 2013. The COSA Measuring Sustainability Report: Coffee and Cocoa in 12 Countries. Philadelphia, PA. The CommiJee on Sustainability
  • Assessment. hJps://thecosa.org/wp-content/uploads/2014/01/The-COSA-Measuring-Sustainability-Report.pdf
  • FCCI. hJps://chocolateinsUtute.org/blog/sizing-the-crab-chocolate-market

IISD: hJps://www.iisd.org/topic/sustainable-development Ingram, V. van Rijn, F. Waarts, Y., Dekkers, M. de Vos, B. Koster, T., Tanoh R., Galo A. Towards Sustainable cocoa in Cote d’Ivoire. The impacts and contribuUon of UTZ cerUficaUon commenUbined with services provided by companies. Wageningen Economic Research, Report 2018-041. hJp:// library.wur.nl/WebQuery/wurpubs/538747 Meadows, D. H., D. L. Meadows, J. Randers, and W. W. Behrens III. 1972. The Limits To Growth. hJp://www.donellameadows.org/wp-content/userfiles/Limits-to-Growth-digital-scan-version.pdf Rodriguez-Nikl (2015) Linking disaster resilience and sustainability, Civil Engineering and Environmental Systems, 32:1-2, 157-169, DOI: 10.1080/10286608.2015.1025386 Ruben, R. 2017. Impact Assessment of Commodity Standards; Towards Inclusive Value Chains. Enterprise Development and Microfinance Vo. 28, 1-2. h\ps://www.developmentbookshelf.com/doi/pdf/10.3362/1755-1986.16-00020 UN Documents. “Our Common Future: Report of the World Commission on Environment and Development”. n.d. Web. Retrieved 27 June 2013. hJp:// www.un-documents. net/ocf-02.htm

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THANK YOU

sallen41@gmail.com