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Objective

                                                                          • Exchange experience on developing a strategy
                                                                            for business engagement
                                                                          • Provide practical examples of how business
         Engaging Business for                                              and conservation communities are engaging to
                                                                            deliver conservation outcomes
            Conservation                                                  • Explain how to develop partnerships that are
                                                                            mutually beneficial and enhance brand value of
                                                                            both organizations
                                                                          • How to communicate and train business on
              Conservation Campus #142                                      ecosystems
                 11 September 2012




Agenda

1. Welcome and introduction

2. Risk and Opportunities of engaging business
                                                                                     Engaging Business for
3. Business Engagement in p
              g g         practice                                                  Co se at o
                                                                                    Conservation: Risks a d
                                                                                                    s s and
4. Create sustainable brand value for business
                                                                                        Opportunities
                                                                                   Gerard Bos, Head – Global Business
5. Training business on ecosystems                                                  and Biodiversity Programme, IUCN
                                                                                             September 2012




Overview                                                                  Matching goals

• Matching conservation                                                   Key factors for success:
  and business goals                                                      Understanding your added value
• Developing a strategy                                                   • Organizational assets
  for business                                                            • Value Proposition
  engagement
     g g                                                                  • What you can do

• Selecting a business
                                                                          Understanding the business
  partner
                                                                          • Business impacts and dependencies
• Formalizing the                                                         • Opportunities for business in conservation
  engagement                                                              • What the business can do

                                                                          Identify shared and added value
                               Figure 1 – Steps in IUCN Operational
                               Guidelines for Private Sector Engagement




                                                                                                                             1
Developing a strategy                                        Developing a strategy
Why a                                                         Why a Strategy? To ensure that engagements are a
                                                              means to a wider conservation goal. To protect your
Strategy?                                                     reputation. To ensure effective use of (generally
                                                              scarce) resources.
How to                                                        How to develop a Strategy? It depends on your type
                                                              of organization: If membership-based, you will need to
develop a
       p                                                      engage in consultations with your members Even if
                                                                                                 members.
Strategy?                                                     not, involve those who will work with business as well
                                                              as business entities. Ensure that the Strategy is in line,
                                                              builds on and supports your main conservation
                                                              programme.
How to use a                                                  How to use a Strategy? It should be your compass
Strategy?                                                     in selecting projects and partners. Not a replacement
                                                              for detailed project concepts or workplans.




 IUCN Strategy                                                Key elements of a strategy
 • IUCN’s first strategy was issued in 2004                   Clear aims, objectives
 • The IUCN Council requested a new Strategy in 2011          The IUCN Business Engagement strategy aims to encourage
 • A first concept was developed with members of the          transformational and demonstrable changes at the company
   Council and used to request input from IUCN                and sectoral level in how biodiversity is valued and managed
   Members, Councillors and partners (mostly                  by businesses in order to conserve and restore biodiversity
   businesses)                                                and to ensure that biodiversity benefits are shared equitably.
 • With the input received a small design team drafted
                   received,                                  Purpose:
   version 1 which was subsequently revised by the            To provide IUCN with a coherent
   Council and discussed during a workshop                    framework for influencing the
 • The final Strategy was approved by Council in April        business sector, a clear reference
   2012                                                       point as to the level of ambition
                                                              expected from the business
 • The strategy builds on IUCN quadrennial programme          engagements, and a consistent
   as well as on past experiences working with business       approach to the management of
                                                              reputational risks and quality
                                                              assurance.




 Key elements of a strategy                                   Key elements of a strategy
                                                              Clear implementation strategy
 Well defined theory of change
                                                              • Engage with a few selected
 IUCN’s BES has three interconnected entry-points, all
                                                                leaders in priority sectors to
 linked to one central objective: business practices at the
                                                                develop or adapt, field test and
 landscape and seascape level are transformed to generate
                                                                pilot tools and approaches.
 benefits for biodiversity and natural resource-dependent
 livelihoods.                                                 • Building on best practices,
                                                                work with a group of companies
  Entry Point 1: Triggering changes                             within selected sectors and
  on the ground                                                 industry associations to develop,
                                                                adopt and promote voluntary
  Entry Point 2: Leveraging supply                              standards.
  chains                                                      • Directly engage with public
                                                                policy and the financial
  Entry Point 3: Influencing public &                           sector to promote a
  financial policies                                            progressive and level playing
                                                                field in terms of regulations and
                                                                finance.




                                                                                                                               2
Selecting a business partner                                              Due Diligence
• Developing an engagement concept (what are                              • A step to enable “informed decisions” on how to
  the conservation challenges that can be                                   progress discussions with business
  addressed through an engagement with                                    • Allows a better understanding of the business
  business?)                                                                and its operations
• Assessing potential business partners                                   • Identifies any past, present, and predictable
      o Is the company well placed to help deliver the                      future sources of risk to the organization arising
        concept? Are they committed to a step change?                       from an engagement with the business
      o Are there shared goals and opportunities to add                   • Helps identify opportunities of engaging and
        value?
                                                                            potential areas of joint work
• Performing a due diligence to identify possible
  sources of risk & opportunities
• Preparing a risk management strategy
                                                  Which company
                                                should we work with?




What should be included?                                                  Risk and Opportunity Matrix
1. Scope
2. Company description
3. Company impact on biodiversity and ecosystem
   services
4. Social and environmental policies, standards and
   public commitments
5. Environmental and social performance
6. Company reputation
7. Initial assessment of the company’s commitment to
   corporate responsibility
                                                                                                         The position of the red dot will move
8. Overview of potential risks                                                                           on answering the questions according
9. Indications of points that could be further                                                           to the risk and opportunities of
   investigated                                                        Results in the tables above are   engaging a given company
                                                                       generated by answering the risk
                                                                       and opportunity questions




Formalizing the engagement                                                A good contract includes…
• Develop a project concept which includes:                               • SMART (Specific, Measurable, Achievable,
  •   Aim and objectives                                                    Realistic and Time-bound) results
  •   Key areas of cooperation                                            • Roles and responsibilities for realizing results
  •   Expected outcomes and how they will contribute to                   • Capacity and resource requirements on both
      your conservation goals                                               sides
• Formalize the engagement through an                                     • Indicators for monitoring and measuring
  appropriate mechanism (
          i t      h i    (e.g. M
                                Memorandum of
                                          d    f                            performance,
                                                                            performance progress and results
  Understanding, Contract, Agreement, etc.)                               • A clause that allows public communication
                                                                            regarding any issues which may or may not
• Ensure transparent and regular communication
                                                                            involve the business entity
  with your constituency during entire process
                                                                          • A process for addressing breach of contract
                                                                          • A termination clause
               How do we                                                  • A mechanism for raising grievances from third
                formalize                                                   parties
            our engagement?
                                                                          • An independent final evaluation




                                                                                                                                                 3
Top Tips                                                     Resources for more information
• Be transparent
• Work with the business from the beginning and              IUCN Business engagement Strategy
  throughout the project (don’t treat them like              http://data.iucn.org/dbtw-wpd/edocs/Rep-
  donors!)                                                   2012-001.pdf
• Conduct a situation analysis – what are the
  impacts and dependencies? Assess the                       Operational Guidelines for Private Sector
  “additionality”?
   additionality ?                                           Engagement
• Assess and manage your risks                               http://cmsdata.iucn.org/downloads/ps_20g
• Aim at establishing true partnerships – ensure
                                                             uidelines.pdf
  that there are mutual benefits from working
  together                                                   Global Business and Biodiversity
• Celebrate success                                          Programme
• Communicate throughout                                     http://www.iucn.org/business




                    Thank you!
                  Kamsa hamnida!
                      감사합니다
                                     www.iucn.org/congress




                                                                                                         4
To cover today



                                                                                            • Strategic rationale for Ecolaboration™

                                                                                            • AAA: our unique approach to sourcing
                                                                                              high quality coffee and cocoa
                                                 ECOLABORATION™                             • Club member engagement and
                                                 Review 2012 -
                                                 outlook 2013                                 stakeholder management
                                                 Tuesday 11 September 2012
                                                                                            • Outlook 2013 and beyond

                                                                                                                                                                                 P2




Ecolaboration™: Strategic rationale                                                    Ecolaboration™: part of the Nestle CSV

                                                                                        “Nespresso’s innovative program is not
                                                                                         driven by charity but by creating value”
   • Integrating Nestle CSV approach into the                                                                           Michael Porter
     Nespresso model                                                                                    Professor of Business Strategy
                                                                                                             Harvard Business school

   • Securing access to and smart use of
     resources
   • Adding value to the Nespresso brand

                                                                                               “A good example of such new
                                                                                           procurement thinking can be found at            Michael Porter at the Third Nespresso AAA
                                                                                             Nespresso, one of Nestlé’s fastest                         Sustainable Quality™ Forum
                                                                                                    growing divisions”
                                                                                  P3                                                                                             P4




Ecolaboration™: securing access to and                                                 Ecolaboration™: adding value to the
smart use of resources                                                                 Nespresso brand

                                                                                        Using
                                                                                       Ecolaboration™ to
                                                61%          Vs 2013 commitment

                                                             of 80%
                                                                                       protect the
                                                                                       company
   -16%    Vs 2013 commitment

           of -20%                                                                     reputation among
                                                                                                                          Securing
                                                                                       key opinion                       reputation
                                                                                       leaders,
                                                                                       leaders activists
                                                                                       and media
                                                                                                                                         Building
                                                                                                                                          trust
                                                                                                                                                         Using
                                                                                                                                                        Ecolaboration™ to
                                                                                                                                                        convince club
                     74%        Vs 2013 commitment

                                of 75%                                                                                                                  members and
                                                                                                                                                        prospects

                                                                                  P5                                                                                             P6




                                                                                                                                                                                       1
There are 3 main challenges in the specialty
To cover today
                                                      coffee sector…

                                                      … facing Nespresso in particular
    • Strategic rationale for Ecolaboration™
    • AAA: our unique approach to sourcing                  1.   Long term supply of quality
      high quality coffee and cocoa                         2.   The sustainability challenge

    • Club member engagement and                            3.   Profitability of smallholders
      stakeholder management
    • Outlook 2013 and beyond



                                               P7                                                    P8




 The AAA Sustainable Quality™ Program                The AAA Program: a pragmatic approach to
 responds to these challenges                        sustainable quality
            … in a pragmatic way,
            with the farmers at the center




                                               P9                                                    P10




The AAA Program: a pragmatic approach to             The AAA Program: a pragmatic approach to
sustainable quality                                  sustainable quality




                                               P11                                                   P12




                                                                                                           2
In ten years the program has expanded to                                                                                         On cocoa, the program started in 2009 with
50’000 farmers in 7 countries                                                                                                    the objective of all clusters AAA in 2013

                                                                                                                                                                             Tanzania ( 2013)
                                                                                                                                                                             “Grands Crus  / Variations”
                                                                                                   50’000 S-A                                                                •Sensory : Round and mild cocoa
                                                                   50’000 farms
                                                 Today                                             3’500 Tasq                                                                •Coops of smallholders TBD
                                                                   7 countries                                                                                               •36 t /year
                                              (Q2 2012)                                            190 agronomists
                                                                   20 clusters                                                                                               •Trade partner : TBD
             Mexico                                                                                200’000 Hectares                                                                                                     Indonesia by end 2012
             1 cluster     Nicaragua
             2 176 farms 2 clusters
             2’176 farms 2 l t                                                                                                                                                                                          “Grands Crus only”
                                                                                                                                                                                                                         Grands Crus only
          Guatemala        94 farms                                                                                               Brazil –Bahia since 2009                                                              •Sensory : Strong cocoa and bitter 
          2 clusters         Costa Rica                                               India                                       “Grands Crus only”                                                                    with gingerbread aromatics
          1’344 farms        4 clusters                                               2 clusters
                             3’361 farms                                              64 farms                                                                                                                          •1 plantation 1’400 ha
                                                                                                                                  • Sensory : Strong cocoa and bitter,
                   Colombia                                                                                                                                                                                             •12t /year
                   4 clusters                                        Ethiopia                                                     with a complex dried fruit and
                                                                     1 cluster (forming)                                          refreshing herbal aromatics                                                           • Trade partner : Armajaro
                   37’994 farms
                                                                     2’200 farms                                                  • 1 plantation 400 ha                       Madagascar since 2011
                                        Brazil
                                        6 clusters                                                                                • 12t /year                                 “Grands Crus / Variation”
                                        1’798 farms                                                                               • Performance RA: DEFICIENT(68%             • Sensory : Strong acidity, balanced
                                                                                                   70’000 S-A                     TASQ incl.5 critical criteria) =>           between cocoa and fruity (lemony)
                                                                                                                                  certification level by 2015                 • 4 coops => 120 s/h
                                                      End 2013       70’000 farms                  7’000 Tasq                     • Trade partner : EFICO                     • 9t /year
                                                                                                                                                                              • Performance RA : Deficient (25%
                                                                                                   250 agronomists                                                            TASQ performance incl.7 critical
                                                                                                                                                                              criteria )
                                                                                                                                                                              Trade partner : TOUTON
                                                                                                                           P13                                                                                                                       P14




In 2012, Nespresso will source 66% of its
                                                                                                                                 Results: Quality up and rejection down
coffee from AAA and 18% AAA RA

                                                             A large disparity between Colombia and
                                                                         other countries
                                                                                                        MexicoIndia
                                                                                                          3% 3%
                                                                                                    Africa
                                                                                                     10%
                                                                                                                      Brazil
                                                                                                                      35%
                                                                                                   Central 
                                                                                                   America
                                                                                                    21%
                                                                                                              Colombia
                                                                                                                28%

                                                                                           Coffee Volume distribution




                                                                     Number of AAA Farms

                                                                                                                           P15                                                                                                                       P16




Results: high rate of farmer satisfaction                                                                                        Results: progress on sustainable agriculture

     Colombian grower satisfaction with                                             % of coffee sold to Nespresso,                                                                                         % farms complying with specific
     sustainability initiatives (% satisfied)                                       among AAA growers                                                                                                      environmental practices




                                 Nespresso Corporate web site
                                             Percent AAA farmers who return sell their                                                                    Environmental performance of AAA
                                             coffee to Nespresso                                                                                          farms vs. non AAA (out of 100)




                                                                                                                           P17                                                                                                                       P18




                                                                                                                                                                                                                                                              3
Results: supporting innovation pipeline          Results: supporting innovation pipeline




                                           P19                                                                     P20




                                                 We are progressively building credibility with
To cover today
                                                 stakeholders


    • Strategic rationale for Ecolaboration™
    • AAA: our unique approach to sourcing
      high quality coffee and cocoa
    • Stakeholder management and Club
      member engagement
    • Outlook 2013 and beyond


                                           P21                                        AAA farmers awarded at the RAP22
                                                                                                                    gala




The Alucycle™ commitment is building             AAA commitment secured reputation during
Nespresso credibility on sustainability          the Solidar attack




                                           P23                                                                     P24




                                                                                                                           4
CM awareness of Ecolaboration™ initiatives
We are progressively building club member
                                                                                                             drive expertise perception and Net Promoter
awareness
                                                                                                             Score

                                                                                                                                                                                Yes and I
                                                                                                                                                         Total   Aware of the
                                                                                                                                                                                  know
                                                                                                                                                        Current Ecolaboration
                                                                                                                                                                                 exactly
                                                                                                                                                        Members   programm
                                                                                                                                                                                what it is
                                                                Awareness     2009 vs. 2011
                                                                                                                                                Base     13299       4277         961
                                                     Recycling initiative
                                                                               29%     79%     +50pts 
                                                                                                             ST NPS score                                54%         62%          64%
                                                     AAA program                                              7                                           9%         7%            8%
                                                                               13%     42%     +29pts    
                                                                                                              8                                           19%        17%          14%
                                                     Ecolaboration™                                           9                                           22%        22%          21%
                                                                               9%      35%     +26pts 
                                                                                                              You would certainly recommend Nespresso     41%        46%          51%




                                                                                                   P25                                                                                       P26




TO COVER TODAY                                                                                               Outlook


        • Strategic rationale for Ecolaboration™
                                                                                                                  • 2013 focus on AAA 10th anniversary to
        • AAA: our unique approach to sourcing                                                                      further build reputation and trust
          high quality coffee and cocoa
                                                                                                                  • Achievement of Ecolaboration target
        • Stakeholder management and Club                                                                           for carbon
          member engagement
                                                                                                                  • Definition of next phase strategy
        • Outlook 2013 and beyond


                                                                                                   P27                                                                                       P28




 Using AAA 10th anniversary to engage
 stakeholders
                                     NMag          Fifth AAA                            Media
                                                   Forum                                Trip field
                          HBR                Academic
                                                                          Santander
                                             Symposium      MBA
                                                            challenge                          NMag

                                     June                July                Sep
                                                                                             Dec
Securing
reputation                   TEN YEARS OF NESPRESSO AAA
             Building
                                     March           July                               Dec
              trust



                      Social media
                      campaign                                          Social media
                                                                        campaign
                                                   Photo
                               Farmers in          exhibition
                               Europe                                                  Book

                                                                                                   P29




                                                                                                                                                                                                   5
RAINFOREST ALLIANCE
                         Conserving Carbon, Engaging
                        Businesses for Positive Climate
                      Impacts in Forestry and Agriculture

                            IUCN World Conservation Congress 2012
                                  Conservation Campus 142


                                  Jeffrey Hayward, jhayward@ra.org
                                       Climate Program Director
©2009 Rainforest Alliance
                                    September 11, 2012, Jeju, Korea      ©2009 Rainforest Alliance




                                                                        VALUE CHAIN APPROACH

                                                                                     Capacity                                                                                          Market
                                                                                     Building                                  Certification                                        development
                                                                                               &                                        &                                                       &
                                                                                 Technical                                   Sustainability                                           Corporate
                                                                                 Assistance                                   Standards                                              engagement


                                                                                                     Auditing / certification /
                                                                                                     verification                      Chain f
                                                                                                                                       Ch i of custody -
                                                                                                                                                    t d                                      Marketing support
                                                                                                                                       traceability                                          and brand
                                                                      Training and support for                                                                                               awareness
                                                                      producers
                                                                                                                                                          Corporate
                                                                                                                                                          engagement




                                                                         producers / processors       buyers / exporters / importers   distributors / brands / retailers / industry groups      consumers



                                                                        LAND USE PRACTICES                               BUSINESS PRACTICES                                CONSUMER BEHAVIOR
©2009 Rainforest Alliance




BUSINESS COLLABORATIONS




                                                                         Incentivize
                                                                         agricultural
                                                                       adaptation and
                                                                           p
                                                                          mitigation




                                                                                                                                                                                                            7




                                                                                                                                                                                                                 1
Promote                                                    Support
 sustainable                                                 credible
   forest                                                    carbon
 management                                                  markets




                                                      8                                                                                       9




BUILDING CAPACITY TO ENABLE REDD+




                                                            WHAT CAN NGOS BRING TO
  Strengthen                                                  BUSINESSES COMMITTED TO
 international                                             CLIMATE CHANGE ACTION WITHIN
    REDD+
  framework                                                       THEIR SUPPLY CHAINS?




                                                      10                                                                                      11




  NGO INFLECTION POINTS                                     BUILDING COMPANY CLIMATE POLICIES




                                                                                       POLICY
                                                                                                   • Map out a climate policy
                                                                  COMMUNICATE


                  COMMUNICATE         POLICY
                                                                                                   • Identify climate risks in supply chain
                                                               VERIFY                     ASSESS   • Recommend emission reductions targets
                                                                                                   • Advocate for quality carbon offsets
                 VERIFY                  ASSESSMENT                        IMPLEMENT




                          IMPLEMENT




                                                      12                                                                                      13




                                                                                                                                                   2
ASSESSING BASELINE CONDITIONS                                                                                      IMPLEMENTING ACTIONS




                             ASSESS                                                                                                         IMPLEMENT
         POLICY                                                                                                          ASSESS
                                                  • Life Cycle Assessment                                                                                  • Technical assistance
                                                  • Carbon Footprinting                                                                                    • Promote best practice
 COMMUNICATE                   IMPLEMENT          • Needs for technical assistance                                  POLICY                       VERIFY    • Carbon project development
                                                  • Feasibility of mitigation/adaptation                                                                   • Link investors to projects
                                                                                                                                  COMMUNICATE
                    VERIFY




                                                                                                              14                                                                          15




VERIFY, MONITOR, REPORT                                                                                            VERIFY, MONITOR, REPORT




                             VERIFY                                                                                                         COMMUNI‐CATE
        IMPLEMENT
                                                                                                                         VERIFY

                                                  • Monitor and evaluate progress                                                                          • Press and social media
   ASSESS                      COMMUNICATE        • Impact and research                                                                                    • Publications
                                                                                                                   IMPLEMENT                      POLICY
                                                  • Ensure conformance to verification                                                                     • International networks
                    POLICY
                                                                                                                                     ASSESS




                                                                                                              16                                                                          17




                                   jhayward@ra.org
                                www.rainforest-alliance.org
                  The Rainforest Alliance works to conserve biodiversity and ensure sustainable livelihoods
                       by transforming land-use practices, business practices and consumer behavior.




                                                                                                                                                                                               3
Grey area…

                                                                                                      Rigour                                                     Practicality
                                                                                                      ● harsh, but just                                          ● usefulness ‐ the quality 
                                                                                                      ● severe or cruel circum‐                                     of being of practical use
                                                                                                         stance                                                  ● functionality ‐ capable of 
                                 Scientific Rigour vs. Practicality                                   ● strictness in judgment or                                   serving a purpose well
                                                                                                         conduct                                                 ● viability ‐ capable of 
                                                                                                      ● Mathematics, Philosophy, 
                                                                                                                        ,         p y,                              being done in a practical 
                                                                                                         Logic: logical validity;                                   way
                                                                                                         accuracy                                                ● sensibleness ‐ the quality 
                                Conservation Campus 142, WCC, Jeju                                                                                                  of showing good sense or 
                                                                                                                                                                    practical judgment
                                           11 Sep 2012                                                Robustness
                                                                                                      ● the characteristic of being                              ● realism, pragmatism ‐
                                                                                                        strong enough to                                            the attribute of 
                                                                                                        withstand intellectual                                      accepting the facts of life
                                               Christoph Imboden
                                                                                                        challenge


                                                                                                                                           WCC, Jeju, Sep 2012                          ChI /  Slide 2




      The law of the diminishing return                                                                Engaging with business on biodiversity 

      Scientific accuracy                                                                              1. Convince that biodiversity has something to do with 
                                                                                                          them
         100%
                                                                                                       2. Motivate them that they should do something
          80%                                                                                                – not how much harm they cause, but…
                                                                                                             – what they can positively do for biodiversity
          60%                                                                                          3. Steer them towards “quick wins”
          40%
                                                                                                       4. Show the benefits of a systematic and integrated 
                                                                                                          approach
          20%                                                                                          5. Demonstrate that implementation is affordable and that 
                                                                                                          simple methods can lead to meaningful outcomes
                                                                                                       6. Team up with them to scale up: influencing industry 
                                                                           Time invested
                                                                                                          standards and regulatory meachanisms
                                         WCC, Jeju, Sep 2012                         ChI /  Slide 3                                        WCC, Jeju, Sep 2012                          ChI /  Slide 4




      Biodiversity Management System ‐ BMS                                                             Biodiversity inventories

                              Biodiversity Policy Principles
                                                                                                      Abundance of  vertebrates & higher 
                                                                                                                    plants
                                                                                                                                                                                        Research 
                                                                                                                                                                                        scientists
           Planning cycle                                        Operational cycle                    List of all vertebrates & higher plants 
                                                                                                               throughout all seasons
                                                                                                                                                                        Conservation 
                                   Impact
Opportunity                                                      Biodiversity Action:                 List of all vertebrates & higher plants
                                                                                                      List of all vertebrates & higher plants                             scientists
                                    Study
  Study         Feasibility                                    EMP, BAP, Rehabilitation
                  Study                                                                                List of sp. characteristic for habitats


        Biodiversity Inventories                                Biodiversity Monitoring                  Presence of threatened species                          Company            Conservation
                                                                                                                                                                                     pragmatist

                                                                                                                   Habitat maps
 What are the                     How can we                    How can we seize bio-
 biodiversity risks?              avoid them?                  diversity opportunities?                                                          Few sites                                     All sites


                                         WCC, Jeju, Sep 2012                         ChI /  Slide 5                                        WCC, Jeju, Sep 2012                          ChI /  Slide 6




                                                                                                                                                                                                           1
Holcim boundary conditions                                                                                                            Biodiversity importance categories
                                                                                                                                              1       Occurrence on site or within 5km or with relevant ecological 
       ● 520 sites ‐ worldwide distribution (>70 countries)                                                                                           connections to:
       ● Very different types of quarries                                                                                                              – globally threatened sp. (IUCN Red List)
                                                                                                                                                       – overlapping with / adjacent to internationally recognised PA
            – from sand to rock, limestone to clay                                                                                                     – Globally outstanding ecosystem / habitat
       ● Size ranging from 5  1000 ha                                                                                                        2       Occurrence on site or within 5km or with relevant ecological 
       ● Longevity ranging from <10 years to >100 years                                                                                               connection to:
                                                                                                                                                       – nationally threatened rare sp
                                                                                                                                                         nationally threatened, rare sp.
       ● Surrounding conditions ranging from monocultures to                                                                                           – nationally protected (recognised) area, reserve etc
         rainforest, industrial to urban areas                                                                                                         – nationally important ecosystem / habitat
       ● Variety of jurisdictions and regulations                                                                                             3       Site:
                                                                                                                                                       – in landscape with diverse, natural ecosystems 
                                                                                                                                                       – in modified landscape with potential for biodiversity 
                                                                                                                                                         enhancement (biodiversity island)
                                                                                                                                                       – with significant local value of the natural environment
                                                                                                                                              4       Site in heavily modified, intensely managed landscape

                                                         WCC, Jeju, Sep 2012                                          ChI /  Slide 7                                              WCC, Jeju, Sep 2012                    ChI /  Slide 8




       Biodiversity Risk Matrix                                                                                                              Monitoring and reporting system
      Risk to biodiversity value of site and/or surrounding area 
                                                                                                                                             Key requirements
       Expected 
       Impact         
                                                 A                B                      C                              D                    ●    Meaningful, but straightforward to measure
       Biodiversity                     Likely impact;  Likely impact;            Possible imp.;                 Unlikely                    ●    Sensitive to changes in management and/or protection
       importance                       mitigation not  mitigation                mitigation                     impact
                                       possible        possible                  recommended
                                                                                                                                             ●    Measurable by means of a simple methodology
                                                                                                                                             ●    Largely assessable by non‐experts (Holcim staff)
                                                                                                                                                  Largely assessable by non experts (Holcim staff)
                   1                          Critical      Significant               Medium                          Low
                                                                                                                                             ●    To be expressed by standardised value
                   2                          Critical      Significant               Medium                          Low                    ●    Must fit into existing environmental reporting
                   3                      Significant        Medium                     Low                           Low                    ●    Allowing aggregation on national and global levels

                   4                           Low               Low                    Low                           Low



                                                         WCC, Jeju, Sep 2012                                          ChI /  Slide 9                                              WCC, Jeju, Sep 2012                   ChI /  Slide 10




       Dilemmas and trade‐offs                                                                                                               BIRS – principal idea
                                                                                                                                                                                                         ESIA
                                                                                                                                                                 INVENTORY                                         Local experts
           Practicality, simplicity                                            Scientific rigour                                                                                                10‐year repeats
 Sound science
 (cause/effect)
                                                                                             Desirable
                                                                                  Expensive Monitoring &
                                                                                                                                                                Habitat extent                          Annual     Holcim staff
                                 Affordable                                                                                                  ALL
             Scientific rigour




                                                                                             Indicator                                      SITES
                                  Minimum standard
                        r




                                                                                                                                                              Habitat condition                         Annual     Holcim staff
                Expectations                                               Expectations
             local communities                                        conservation community
                                                                                         Minimum standard




                                                                                                                                                              Habitat uniqueness                        5‐10 yrs   Local expert
                   Needs/wishes 
                                                                          Legal requirements                                            Sites with
                   of the company
                                                                                                                                         special              Species/habitats 
                                                                                                                                       biodiversity                                                     Annual     Local experts
Limited meaning                                                                                                                                               of special concern
                                                                                                                                       management
                                 Very involved,              Practicality                                   Simple methods,
                                                                                                                                                                BIODIVERSITY 
                                 requiring expertise                                                           to be done by
                                 knowledge                                                                       non-experts                                  CONDITION INDEX
                                                         WCC, Jeju, Sep 2012                                         ChI /  Slide 11                                              WCC, Jeju, Sep 2012                   ChI /  Slide 12




                                                                                                                                                                                                                                          2
Habitat condition                                                                                              Pictorial guides for assessing habitat condition
                                                                                                            2 out of 10‐15 questions
● Condition assessment
                                                                                                        Are there other non‐woody flowering species consisting of…
     – Two persons (non‐experts) to walk independently for 30‐60                                             only one species?              two species?                  three species?              more than 3 species?
       minutes through each of the habitats. 
                                                                                                        1                               2                             3                           4
     – Same season and time of day, similar weather condition
     – 10‐15 questions about each habitat type to be answered on                                Score

       a scale of 1‐4 (implying poor to good condition) on the 
       a scale of 1‐4 (implying poor to good condition) on the
       basis of visual guidance notes.
                                                                                                             Are the shrubs and/or trees growing above the height of the grasslayer …
     – 2‐3 fixed point photo for reference
                                                                                                                virtually across the             abundantly found             sparsely spread     occurring as a very few 
● Condition of each habitat: mean of all values                                                                 whole site?                      across the site?             across the site?    isolated individuals?

                                                                                                               1                             2                            3                       4




                                WCC, Jeju, Sep 2012                           ChI /  Slide 13                                                                WCC, Jeju, Sep 2012                               ChI /  Slide 14




Indicative wetlands questions                                                                                  Aggregation of KPIs
                                                                                                                                                                                           Adjustments / weightings 
                                      1               2                3             4
                                                                                                                                                                                           for:
How many different wetland      1                2             3             > 3
                                                                                                                                                                                            •  Relative biodiversity 
zones can you distinguish?                                                                                                         Global Biodiversity KPI
                                                                                                                                                                                            importance of country
What is the water colour?       Intense          Distinct      Light         No colour

What is the turbidity of the    Very cloudy      Cloudy        Slightly      Clear
water?                                                         cloudy                                                       Country A                          Country B                    •  Relative biodiversity 
                                                                                                                      National Biodiversity KPI
                                                                                                                      National Biodiversity KPI                   KPI                       importance of region 
How do the floating plants      Dead &           More than     Less than     All healthy                                                                                                    within a country
appear?                         decaying         half brown    half brown 
                                                 & dying       & dying
                                                                                                                                                                                            •  Site heterogeneity, 
Do you see any invasive         Dense            Many          A few         None                       Site 2         Site 1 Biodiversity Index               Site 3                       diversity of habitats
wetland plants?                                                                                          KPI                      KPI                           KPI
                                                                                                                                                                                            •  Relative biodiversity 
Do you see any dragonflies?     None             A few; one    Some; > 1     Many;                                                                                                          value of habitat
                                                 species       species       several sp.
                                None             Some; 1 sp.   Many; 1 sp.   Many; se‐
                                                                                                                   Habitat       Habitat           Habitat 
Are waterbirds present?
                                                                             veral sp.                             value A       value B           value C
                                                               Some; >1sp

                                WCC, Jeju, Sep 2012                           ChI /  Slide 15                                                                WCC, Jeju, Sep 2012                               ChI /  Slide 16




Lessons…

1. Better to have some basic standard information on all 
   sites than to have detailed information on a few sites 
   only and none at all from all others.

2. Keep engaged with partner for continuing reality / 
   practicality check.

3. Involve partner as much as possible in development of 
   ideas.




                                WCC, Jeju, Sep 2012                           ChI /  Slide 17




                                                                                                                                                                                                                                 3
Creating sustainable
   brand value for
   companies
                                                                                                                                                           EROSEI
                                                                                                                                                Economic Return on Social
   Conservation Campus 142
   Engaging Business for                                                                                                                           and Environmental
   Conservation                                                                                                                                       Investment

   IUCN World Conservation
   Congress


                                                            Jeju, South Korea, Sept 11, 2012                                       © 2012 by GoodBrand and SEMPORA




                                                                                               Citizen-consumers entering a new phase with
                                                                                               new expectations from companies and brands

                                                                                                                  Era    >           Crisis    >    Era    >         Crisis   >      Era


                                                                                                   Context        Post-war           70s/80s        Age of           Financial/      Age of
                                                                                                                  austerity          battlegroun    Opulence         values crisis   Meaning
                                                                                                                                     d
                                                                                                   Consumer       “I need”                          “I want”                         “I belong”
                                                                                                   Paradigm

                                                                                                   Typical        - Availability     ?              - More           ?               - Smarter
                                                                                                   Brand          - Consistency                     - Bigger                         - Fitter
                                                                                                   Messages       - Functional                      - Faster                         - Wiser
                                                                                                                  performance                       - Cheaper                        - Closer
                                                                                                                                                                                     - Fairer




                                                                                                                                              These changes will redefine how consumer-
Critical issue for business:                                                                                                                  facing companies will compete in the future
The smart and wise management of reputation
                          © 2012 by GoodBrand and SEMPORA                                                                          © 2012 by GoodBrand and SEMPORA




Brands will need to connect with the most                                                      The opportunity for brands…
fundamental human values
                                                                                                  - to help citizens lead “better” lives:

                                                                                                              - more meaningful
                                                                                                              - more responsible
                                                                                                              - more future-proofed
                                                                                                                                                                                  We call this “brand
                                                                                                 BY                                                                               social energy”
                                                                                                              - looking after my family
                                                                                                              - enhancing my/our potential
                                                                                                              - helping me/us flourish
                                                                                                              - investing in my future
                                                                                                              - helping create a positive legacy

                                                                                                 HOW
                                                                                                              - through its products and services, and how they are produced
                                                                                                              and consumed
                                                                                                              - through the wider changes it helps create and influence


                          © 2012 by GoodBrand andData
                                 Source: Roper SEMPORA                                                                             © 2012 by GoodBrand and SEMPORA




                                                                                                                                                                                                        1
Companies need brands with social equity                                      Companies want to measure their
                                                                              social equity performance


     [social equity]
     Consumer or public
     confidence i th values
        fid     in the l
     and capability of a
     brand




                         © 2012 by GoodBrand and SEMPORA                                                   © 2012 by GoodBrand and SEMPORA




                                                                               The opportunity /chance – building credibility and trust
 • An online survey representative of all adults
                                                                              The 6 factors of social equity
   including ethical consumer segmentation
   (25,000 adult ‘consumers’, 12 countries)
 • 2000 brands
 • Questions on social and environmental
   performance..
 • …as well as brand energy, preference, loyalty
 • Calculation of an index to give a single figure
   and relative score




                         © 2012 by GoodBrand and SEMPORA                                                   © 2012 by GoodBrand and SEMPORA




                                                              Measuring brands as a force for good and a force
    The social energy grid                                    for change
                                                                                   The Social Energy Grid                                    Social Equity
                                                                                        High 
                                                                                   integrity but        Trusted 
                                                                                      lacking           leaders                        Perception of company/brand as
                  High integrity                                                                                                               ‘force for good’
                                               Trusted
                                                Future                              dynamism
                   but lacking
                                                                   l Equity




                                               shapers
                                              leaders
                   dynamism
                                                              Social




                                                                                                       Dynamic                               Brand Energy
        Social                                                                                         but with 
                                                                                    Followers
        equity                                                                                       questionabl
                                                                                                      e integrity
                                                                                                                                       Perception of company/brand as
                                             Dynamic but
                                                                                                                                          ‘force for positive change’
                  Followers               with questionable
                                                integrity
                                                                                                Brand Energy

                                                                                  Trusted leaders are perceived as a force for good and a force for change
                             Brand energy                                                              They enjoy people’s     goodwill
                         © 2012 by GoodBrand and SEMPORA                                                   © 2012 by GoodBrand and SEMPORA




                                                                                                                                                                        2
NGOs dominate the social energy field                            Leveraging relationships with trusted NGOs will
                                                                  help brands be seen as a force for good
                                        Social Energy Plot - UK                            Social Energy Plot - UK




                              © 2012 by GoodBrand and SEMPORA                      © 2012 by GoodBrand and SEMPORA




Zuruck zum Ursprung shows how brands can build positive           …reflected in best in class dairy and one of
reputations through sustainability actions                        highest environmental performances
                                                                                             Social Energy Plot: Dairy


   - Organic own label range for
   Hofer, Austria (part of Aldi)


   -Builds its brand values
   by engaging consumers
   directly with the
   organisation and its
   supply chain
   partnerships, bringing
   sustainability and
   community to life for
   consumers in relevant,
   interesting ways (e.g.
   online “meet our
   farmers” programme)

                              © 2012 by GoodBrand and SEMPORA                      © 2012 by GoodBrand and SEMPORA




 Sometimes companies reach a point of realisation                 Companies undergo a period of significant
 its time to change                                               reinvention




                              © 2012 by GoodBrand and SEMPORA                      © 2012 by GoodBrand and SEMPORA




                                                                                                                         3
Coffee companies are boosting their social equity
 …leading to transformed brand perception                              performance by showing their work with partners
               Social Energy Plot - McDonald's 2008 vs 2010




                                   © 2012 by GoodBrand and SEMPORA                                            © 2012 by GoodBrand and SEMPORA




This transfers social equity from the partner NGO                      Kenco coffee UK is getting an environmental
to the commercial brand                                                transfer effect from its NGO partner
                                          Social Energy Plot - UK
                                                                        Social Equity Factors: Rainforest Alliance vs Kenco            Social Equity Factors: Kenco vs Coffee Average




                                   © 2012 by GoodBrand and SEMPORA                                            © 2012 by GoodBrand and SEMPORA




Thoughts on brand leverage to engage business
in partnerships for conservation                                       Important principle 1: Balance
 Ensure the correct strategic fit operationally not based on
 communications
 Plan for long term gradual brand evolution
 Engage the senior people in the company on planning for brand value
 creation                                                                                             Securing
 Focus on tonality
 F        t   lit                                                                                    reputation

                                                                                                                               Building
                                                                                                                                  trust




                                   © 2012 by GoodBrand and SEMPORA                                            © 2012 by GoodBrand and SEMPORA




                                                                                                                                                                                        4
Important principle 2: Transparency                Important principle 3: Consistency
                                                 “It’s the most ambitious commitment ever to help smallholder
                                                 coffee farmers achieve
                                                 Rainforest Alliance
                                                 certification and
              "If you tell the                   improve coffee
              truth you don t
                         don't                   quality
                                                 quality”        Chris Wille,
                                                   Head of Sustainable Agriculture
              have to remember                             The Rainforest Alliance

              anything.”
              - Mark Twain


                                                                                                                                 Nespresso AAA farmers
                                                                                                                       Meeting Club members in New York
               © 2012 by GoodBrand and SEMPORA                                       © 2012 by GoodBrand and SEMPORA




Important principle 4: Humility




               © 2012 by GoodBrand and SEMPORA




                                                                                                                                                          5
Business Ecosystems
                               Training
                               Learn how to train business on                                                     Introducing
                               ecosystems                                                              Business Ecosystems Training (BET)
                                                                                                                    program




                                                            Conservation Campus
                                                        11 Sept 2012, 09:00-13:00




 The business case for training                                                                         Rationale for developing BET?

 72% of CEOs see education as the global
  development issue most critical to address for                                                         Business both impacts and                    Business

  the future success of their business                                                                    depends on ecosystems
                                                                                                                                             Depends              Impacts
                                                                                                         However, issues tend to be
 86% of CEOs think that companies should invest in
                                                                                                          poorly understood
  enhanced training of managers to integrate
  sustainability into strategy and operations
     t i bilit i t t t           d      ti                                                               N d t fill k
                                                                                                          Need to    knowledge gaps
                                                                                                                         l d
       However, only 60% of them are implementing                                                                                                     Ecosystems
        this



            Source: United Nations Global Compact CEO Survey 2010 (based on 766 completed responses)


                                                                                                   3                                                                 4




 What is BET?                                                                                           Who is it for?
                                                                                                         Business audience
 A comprehensive capacity building program that aims
                                                                                                         Different levels of management &
  to equip business with the skills it needs to better
                                                                                                          seniority
  understand, measure, manage and mitigate
  ecosystem impacts and dependencies                                                                     Wide range of departments:
                                                                                                          from SD to procurement to finance
 Leverages the wealth of existing WBCSD materials,
  methodologies and tools, also including other
  resources                                                                                                       Any professional who needs to
                                                                                                                  manage its company’s risks and
 Open-source                                                                                                              opportunities


                                                                                                   5                                                                 6




                                                                                                                                                                         1
142 engaging business for conservation   presentations
142 engaging business for conservation   presentations
142 engaging business for conservation   presentations
142 engaging business for conservation   presentations
142 engaging business for conservation   presentations

More Related Content

142 engaging business for conservation presentations

  • 1. Objective • Exchange experience on developing a strategy for business engagement • Provide practical examples of how business Engaging Business for and conservation communities are engaging to deliver conservation outcomes Conservation • Explain how to develop partnerships that are mutually beneficial and enhance brand value of both organizations • How to communicate and train business on Conservation Campus #142 ecosystems 11 September 2012 Agenda 1. Welcome and introduction 2. Risk and Opportunities of engaging business Engaging Business for 3. Business Engagement in p g g practice Co se at o Conservation: Risks a d s s and 4. Create sustainable brand value for business Opportunities Gerard Bos, Head – Global Business 5. Training business on ecosystems and Biodiversity Programme, IUCN September 2012 Overview Matching goals • Matching conservation Key factors for success: and business goals Understanding your added value • Developing a strategy • Organizational assets for business • Value Proposition engagement g g • What you can do • Selecting a business Understanding the business partner • Business impacts and dependencies • Formalizing the • Opportunities for business in conservation engagement • What the business can do Identify shared and added value Figure 1 – Steps in IUCN Operational Guidelines for Private Sector Engagement 1
  • 2. Developing a strategy Developing a strategy Why a Why a Strategy? To ensure that engagements are a means to a wider conservation goal. To protect your Strategy? reputation. To ensure effective use of (generally scarce) resources. How to How to develop a Strategy? It depends on your type of organization: If membership-based, you will need to develop a p engage in consultations with your members Even if members. Strategy? not, involve those who will work with business as well as business entities. Ensure that the Strategy is in line, builds on and supports your main conservation programme. How to use a How to use a Strategy? It should be your compass Strategy? in selecting projects and partners. Not a replacement for detailed project concepts or workplans. IUCN Strategy Key elements of a strategy • IUCN’s first strategy was issued in 2004 Clear aims, objectives • The IUCN Council requested a new Strategy in 2011 The IUCN Business Engagement strategy aims to encourage • A first concept was developed with members of the transformational and demonstrable changes at the company Council and used to request input from IUCN and sectoral level in how biodiversity is valued and managed Members, Councillors and partners (mostly by businesses in order to conserve and restore biodiversity businesses) and to ensure that biodiversity benefits are shared equitably. • With the input received a small design team drafted received, Purpose: version 1 which was subsequently revised by the To provide IUCN with a coherent Council and discussed during a workshop framework for influencing the • The final Strategy was approved by Council in April business sector, a clear reference 2012 point as to the level of ambition expected from the business • The strategy builds on IUCN quadrennial programme engagements, and a consistent as well as on past experiences working with business approach to the management of reputational risks and quality assurance. Key elements of a strategy Key elements of a strategy Clear implementation strategy Well defined theory of change • Engage with a few selected IUCN’s BES has three interconnected entry-points, all leaders in priority sectors to linked to one central objective: business practices at the develop or adapt, field test and landscape and seascape level are transformed to generate pilot tools and approaches. benefits for biodiversity and natural resource-dependent livelihoods. • Building on best practices, work with a group of companies Entry Point 1: Triggering changes within selected sectors and on the ground industry associations to develop, adopt and promote voluntary Entry Point 2: Leveraging supply standards. chains • Directly engage with public policy and the financial Entry Point 3: Influencing public & sector to promote a financial policies progressive and level playing field in terms of regulations and finance. 2
  • 3. Selecting a business partner Due Diligence • Developing an engagement concept (what are • A step to enable “informed decisions” on how to the conservation challenges that can be progress discussions with business addressed through an engagement with • Allows a better understanding of the business business?) and its operations • Assessing potential business partners • Identifies any past, present, and predictable o Is the company well placed to help deliver the future sources of risk to the organization arising concept? Are they committed to a step change? from an engagement with the business o Are there shared goals and opportunities to add • Helps identify opportunities of engaging and value? potential areas of joint work • Performing a due diligence to identify possible sources of risk & opportunities • Preparing a risk management strategy Which company should we work with? What should be included? Risk and Opportunity Matrix 1. Scope 2. Company description 3. Company impact on biodiversity and ecosystem services 4. Social and environmental policies, standards and public commitments 5. Environmental and social performance 6. Company reputation 7. Initial assessment of the company’s commitment to corporate responsibility The position of the red dot will move 8. Overview of potential risks on answering the questions according 9. Indications of points that could be further to the risk and opportunities of investigated Results in the tables above are engaging a given company generated by answering the risk and opportunity questions Formalizing the engagement A good contract includes… • Develop a project concept which includes: • SMART (Specific, Measurable, Achievable, • Aim and objectives Realistic and Time-bound) results • Key areas of cooperation • Roles and responsibilities for realizing results • Expected outcomes and how they will contribute to • Capacity and resource requirements on both your conservation goals sides • Formalize the engagement through an • Indicators for monitoring and measuring appropriate mechanism ( i t h i (e.g. M Memorandum of d f performance, performance progress and results Understanding, Contract, Agreement, etc.) • A clause that allows public communication regarding any issues which may or may not • Ensure transparent and regular communication involve the business entity with your constituency during entire process • A process for addressing breach of contract • A termination clause How do we • A mechanism for raising grievances from third formalize parties our engagement? • An independent final evaluation 3
  • 4. Top Tips Resources for more information • Be transparent • Work with the business from the beginning and IUCN Business engagement Strategy throughout the project (don’t treat them like http://data.iucn.org/dbtw-wpd/edocs/Rep- donors!) 2012-001.pdf • Conduct a situation analysis – what are the impacts and dependencies? Assess the Operational Guidelines for Private Sector “additionality”? additionality ? Engagement • Assess and manage your risks http://cmsdata.iucn.org/downloads/ps_20g • Aim at establishing true partnerships – ensure uidelines.pdf that there are mutual benefits from working together Global Business and Biodiversity • Celebrate success Programme • Communicate throughout http://www.iucn.org/business Thank you! Kamsa hamnida! 감사합니다 www.iucn.org/congress 4
  • 5. To cover today • Strategic rationale for Ecolaboration™ • AAA: our unique approach to sourcing high quality coffee and cocoa ECOLABORATION™ • Club member engagement and Review 2012 - outlook 2013 stakeholder management Tuesday 11 September 2012 • Outlook 2013 and beyond P2 Ecolaboration™: Strategic rationale Ecolaboration™: part of the Nestle CSV “Nespresso’s innovative program is not driven by charity but by creating value” • Integrating Nestle CSV approach into the Michael Porter Nespresso model Professor of Business Strategy Harvard Business school • Securing access to and smart use of resources • Adding value to the Nespresso brand “A good example of such new procurement thinking can be found at Michael Porter at the Third Nespresso AAA Nespresso, one of Nestlé’s fastest Sustainable Quality™ Forum growing divisions” P3 P4 Ecolaboration™: securing access to and Ecolaboration™: adding value to the smart use of resources Nespresso brand  Using Ecolaboration™ to 61% Vs 2013 commitment of 80% protect the company -16% Vs 2013 commitment of -20% reputation among Securing key opinion reputation leaders, leaders activists and media Building trust  Using Ecolaboration™ to convince club 74% Vs 2013 commitment of 75% members and prospects P5 P6 1
  • 6. There are 3 main challenges in the specialty To cover today coffee sector… … facing Nespresso in particular • Strategic rationale for Ecolaboration™ • AAA: our unique approach to sourcing 1. Long term supply of quality high quality coffee and cocoa 2. The sustainability challenge • Club member engagement and 3. Profitability of smallholders stakeholder management • Outlook 2013 and beyond P7 P8 The AAA Sustainable Quality™ Program The AAA Program: a pragmatic approach to responds to these challenges sustainable quality … in a pragmatic way, with the farmers at the center P9 P10 The AAA Program: a pragmatic approach to The AAA Program: a pragmatic approach to sustainable quality sustainable quality P11 P12 2
  • 7. In ten years the program has expanded to On cocoa, the program started in 2009 with 50’000 farmers in 7 countries the objective of all clusters AAA in 2013 Tanzania ( 2013) “Grands Crus  / Variations” 50’000 S-A •Sensory : Round and mild cocoa 50’000 farms Today 3’500 Tasq •Coops of smallholders TBD 7 countries •36 t /year (Q2 2012) 190 agronomists 20 clusters •Trade partner : TBD Mexico 200’000 Hectares Indonesia by end 2012 1 cluster Nicaragua 2 176 farms 2 clusters 2’176 farms 2 l t “Grands Crus only” Grands Crus only Guatemala 94 farms Brazil –Bahia since 2009 •Sensory : Strong cocoa and bitter  2 clusters Costa Rica India “Grands Crus only” with gingerbread aromatics 1’344 farms 4 clusters 2 clusters 3’361 farms 64 farms •1 plantation 1’400 ha • Sensory : Strong cocoa and bitter, Colombia •12t /year 4 clusters Ethiopia with a complex dried fruit and 1 cluster (forming) refreshing herbal aromatics • Trade partner : Armajaro 37’994 farms 2’200 farms • 1 plantation 400 ha Madagascar since 2011 Brazil 6 clusters • 12t /year “Grands Crus / Variation” 1’798 farms • Performance RA: DEFICIENT(68% • Sensory : Strong acidity, balanced 70’000 S-A TASQ incl.5 critical criteria) => between cocoa and fruity (lemony) certification level by 2015 • 4 coops => 120 s/h End 2013 70’000 farms 7’000 Tasq • Trade partner : EFICO • 9t /year • Performance RA : Deficient (25% 250 agronomists TASQ performance incl.7 critical criteria ) Trade partner : TOUTON P13 P14 In 2012, Nespresso will source 66% of its Results: Quality up and rejection down coffee from AAA and 18% AAA RA A large disparity between Colombia and other countries MexicoIndia 3% 3% Africa 10% Brazil 35% Central  America 21% Colombia 28% Coffee Volume distribution Number of AAA Farms P15 P16 Results: high rate of farmer satisfaction Results: progress on sustainable agriculture Colombian grower satisfaction with % of coffee sold to Nespresso, % farms complying with specific sustainability initiatives (% satisfied) among AAA growers environmental practices Nespresso Corporate web site Percent AAA farmers who return sell their Environmental performance of AAA coffee to Nespresso farms vs. non AAA (out of 100) P17 P18 3
  • 8. Results: supporting innovation pipeline Results: supporting innovation pipeline P19 P20 We are progressively building credibility with To cover today stakeholders • Strategic rationale for Ecolaboration™ • AAA: our unique approach to sourcing high quality coffee and cocoa • Stakeholder management and Club member engagement • Outlook 2013 and beyond P21 AAA farmers awarded at the RAP22 gala The Alucycle™ commitment is building AAA commitment secured reputation during Nespresso credibility on sustainability the Solidar attack P23 P24 4
  • 9. CM awareness of Ecolaboration™ initiatives We are progressively building club member drive expertise perception and Net Promoter awareness Score Yes and I Total Aware of the know Current Ecolaboration exactly Members programm what it is Awareness 2009 vs. 2011 Base 13299 4277 961 Recycling initiative 29% 79% +50pts  ST NPS score 54% 62% 64% AAA program 7 9% 7% 8% 13% 42% +29pts  8 19% 17% 14% Ecolaboration™ 9 22% 22% 21% 9% 35% +26pts  You would certainly recommend Nespresso 41% 46% 51% P25 P26 TO COVER TODAY Outlook • Strategic rationale for Ecolaboration™ • 2013 focus on AAA 10th anniversary to • AAA: our unique approach to sourcing further build reputation and trust high quality coffee and cocoa • Achievement of Ecolaboration target • Stakeholder management and Club for carbon member engagement • Definition of next phase strategy • Outlook 2013 and beyond P27 P28 Using AAA 10th anniversary to engage stakeholders NMag Fifth AAA Media Forum Trip field HBR Academic Santander Symposium MBA challenge NMag June July Sep Dec Securing reputation TEN YEARS OF NESPRESSO AAA Building March July Dec trust Social media campaign Social media campaign Photo Farmers in exhibition Europe Book P29 5
  • 10. RAINFOREST ALLIANCE Conserving Carbon, Engaging Businesses for Positive Climate Impacts in Forestry and Agriculture IUCN World Conservation Congress 2012 Conservation Campus 142 Jeffrey Hayward, jhayward@ra.org Climate Program Director ©2009 Rainforest Alliance September 11, 2012, Jeju, Korea ©2009 Rainforest Alliance VALUE CHAIN APPROACH Capacity Market Building Certification development & & & Technical Sustainability Corporate Assistance Standards engagement Auditing / certification / verification Chain f Ch i of custody - t d Marketing support traceability and brand Training and support for awareness producers Corporate engagement producers / processors buyers / exporters / importers distributors / brands / retailers / industry groups consumers LAND USE PRACTICES BUSINESS PRACTICES CONSUMER BEHAVIOR ©2009 Rainforest Alliance BUSINESS COLLABORATIONS Incentivize agricultural adaptation and p mitigation 7 1
  • 11. Promote Support sustainable credible forest carbon management markets 8 9 BUILDING CAPACITY TO ENABLE REDD+ WHAT CAN NGOS BRING TO Strengthen BUSINESSES COMMITTED TO international CLIMATE CHANGE ACTION WITHIN REDD+ framework THEIR SUPPLY CHAINS? 10 11 NGO INFLECTION POINTS BUILDING COMPANY CLIMATE POLICIES POLICY • Map out a climate policy COMMUNICATE COMMUNICATE POLICY • Identify climate risks in supply chain VERIFY ASSESS • Recommend emission reductions targets • Advocate for quality carbon offsets VERIFY ASSESSMENT IMPLEMENT IMPLEMENT 12 13 2
  • 12. ASSESSING BASELINE CONDITIONS IMPLEMENTING ACTIONS ASSESS IMPLEMENT POLICY ASSESS • Life Cycle Assessment • Technical assistance • Carbon Footprinting • Promote best practice COMMUNICATE IMPLEMENT • Needs for technical assistance POLICY VERIFY • Carbon project development • Feasibility of mitigation/adaptation • Link investors to projects COMMUNICATE VERIFY 14 15 VERIFY, MONITOR, REPORT VERIFY, MONITOR, REPORT VERIFY COMMUNI‐CATE IMPLEMENT VERIFY • Monitor and evaluate progress • Press and social media ASSESS COMMUNICATE • Impact and research • Publications IMPLEMENT POLICY • Ensure conformance to verification • International networks POLICY ASSESS 16 17 jhayward@ra.org www.rainforest-alliance.org The Rainforest Alliance works to conserve biodiversity and ensure sustainable livelihoods by transforming land-use practices, business practices and consumer behavior. 3
  • 13. Grey area… Rigour Practicality ● harsh, but just ● usefulness ‐ the quality  ● severe or cruel circum‐ of being of practical use stance ● functionality ‐ capable of  Scientific Rigour vs. Practicality  ● strictness in judgment or  serving a purpose well conduct ● viability ‐ capable of  ● Mathematics, Philosophy,  , p y, being done in a practical  Logic: logical validity;  way accuracy ● sensibleness ‐ the quality  Conservation Campus 142, WCC, Jeju of showing good sense or  practical judgment 11 Sep 2012  Robustness ● the characteristic of being  ● realism, pragmatism ‐ strong enough to  the attribute of  withstand intellectual  accepting the facts of life Christoph Imboden challenge WCC, Jeju, Sep 2012 ChI /  Slide 2 The law of the diminishing return Engaging with business on biodiversity  Scientific accuracy 1. Convince that biodiversity has something to do with  them 100% 2. Motivate them that they should do something 80% – not how much harm they cause, but… – what they can positively do for biodiversity 60% 3. Steer them towards “quick wins” 40% 4. Show the benefits of a systematic and integrated  approach 20% 5. Demonstrate that implementation is affordable and that  simple methods can lead to meaningful outcomes 6. Team up with them to scale up: influencing industry  Time invested standards and regulatory meachanisms WCC, Jeju, Sep 2012 ChI /  Slide 3 WCC, Jeju, Sep 2012 ChI /  Slide 4 Biodiversity Management System ‐ BMS Biodiversity inventories Biodiversity Policy Principles Abundance of  vertebrates & higher  plants Research  scientists Planning cycle Operational cycle List of all vertebrates & higher plants  throughout all seasons Conservation  Impact Opportunity Biodiversity Action: List of all vertebrates & higher plants List of all vertebrates & higher plants scientists Study Study Feasibility EMP, BAP, Rehabilitation Study List of sp. characteristic for habitats Biodiversity Inventories Biodiversity Monitoring Presence of threatened species Company Conservation pragmatist Habitat maps What are the How can we How can we seize bio- biodiversity risks? avoid them? diversity opportunities? Few sites All sites WCC, Jeju, Sep 2012 ChI /  Slide 5 WCC, Jeju, Sep 2012 ChI /  Slide 6 1
  • 14. Holcim boundary conditions Biodiversity importance categories 1 Occurrence on site or within 5km or with relevant ecological  ● 520 sites ‐ worldwide distribution (>70 countries) connections to: ● Very different types of quarries  – globally threatened sp. (IUCN Red List) – overlapping with / adjacent to internationally recognised PA – from sand to rock, limestone to clay – Globally outstanding ecosystem / habitat ● Size ranging from 5  1000 ha 2 Occurrence on site or within 5km or with relevant ecological  ● Longevity ranging from <10 years to >100 years  connection to: – nationally threatened rare sp nationally threatened, rare sp. ● Surrounding conditions ranging from monocultures to  – nationally protected (recognised) area, reserve etc rainforest, industrial to urban areas – nationally important ecosystem / habitat ● Variety of jurisdictions and regulations 3 Site: – in landscape with diverse, natural ecosystems  – in modified landscape with potential for biodiversity  enhancement (biodiversity island) – with significant local value of the natural environment 4 Site in heavily modified, intensely managed landscape WCC, Jeju, Sep 2012 ChI /  Slide 7 WCC, Jeju, Sep 2012 ChI /  Slide 8 Biodiversity Risk Matrix Monitoring and reporting system Risk to biodiversity value of site and/or surrounding area  Key requirements Expected  Impact          A B C D ● Meaningful, but straightforward to measure Biodiversity  Likely impact;  Likely impact;  Possible imp.;  Unlikely  ● Sensitive to changes in management and/or protection importance   mitigation not  mitigation  mitigation  impact  possible possible recommended ● Measurable by means of a simple methodology ● Largely assessable by non‐experts (Holcim staff) Largely assessable by non experts (Holcim staff) 1 Critical Significant Medium Low ● To be expressed by standardised value 2 Critical Significant Medium Low ● Must fit into existing environmental reporting 3 Significant Medium Low Low ● Allowing aggregation on national and global levels 4 Low Low Low Low WCC, Jeju, Sep 2012 ChI /  Slide 9 WCC, Jeju, Sep 2012 ChI /  Slide 10 Dilemmas and trade‐offs BIRS – principal idea ESIA INVENTORY Local experts Practicality, simplicity Scientific rigour 10‐year repeats Sound science (cause/effect) Desirable Expensive Monitoring & Habitat extent Annual Holcim staff Affordable ALL Scientific rigour Indicator SITES Minimum standard r Habitat condition Annual Holcim staff Expectations Expectations local communities conservation community Minimum standard Habitat uniqueness 5‐10 yrs Local expert Needs/wishes  Legal requirements Sites with of the company special Species/habitats  biodiversity Annual Local experts Limited meaning of special concern management Very involved, Practicality Simple methods, BIODIVERSITY  requiring expertise to be done by knowledge non-experts CONDITION INDEX WCC, Jeju, Sep 2012 ChI /  Slide 11 WCC, Jeju, Sep 2012 ChI /  Slide 12 2
  • 15. Habitat condition Pictorial guides for assessing habitat condition 2 out of 10‐15 questions ● Condition assessment Are there other non‐woody flowering species consisting of… – Two persons (non‐experts) to walk independently for 30‐60  only one species? two species? three species? more than 3 species? minutes through each of the habitats.  1 2 3 4 – Same season and time of day, similar weather condition – 10‐15 questions about each habitat type to be answered on  Score a scale of 1‐4 (implying poor to good condition) on the  a scale of 1‐4 (implying poor to good condition) on the basis of visual guidance notes. Are the shrubs and/or trees growing above the height of the grasslayer … – 2‐3 fixed point photo for reference virtually across the  abundantly found  sparsely spread  occurring as a very few  ● Condition of each habitat: mean of all values whole site? across the site? across the site? isolated individuals? 1 2 3 4 WCC, Jeju, Sep 2012 ChI /  Slide 13 WCC, Jeju, Sep 2012 ChI /  Slide 14 Indicative wetlands questions Aggregation of KPIs Adjustments / weightings  1 2 3 4 for: How many different wetland  1 2 3 > 3 •  Relative biodiversity  zones can you distinguish? Global Biodiversity KPI importance of country What is the water colour? Intense Distinct Light No colour What is the turbidity of the  Very cloudy Cloudy Slightly  Clear water? cloudy Country A Country B •  Relative biodiversity  National Biodiversity KPI National Biodiversity KPI KPI importance of region  How do the floating plants  Dead &  More than  Less than  All healthy within a country appear? decaying half brown  half brown  & dying & dying •  Site heterogeneity,  Do you see any invasive  Dense Many  A few None Site 2 Site 1 Biodiversity Index Site 3 diversity of habitats wetland plants? KPI KPI KPI •  Relative biodiversity  Do you see any dragonflies? None A few; one  Some; > 1  Many;  value of habitat species species several sp. None Some; 1 sp. Many; 1 sp. Many; se‐ Habitat  Habitat  Habitat  Are waterbirds present? veral sp. value A value B value C Some; >1sp WCC, Jeju, Sep 2012 ChI /  Slide 15 WCC, Jeju, Sep 2012 ChI /  Slide 16 Lessons… 1. Better to have some basic standard information on all  sites than to have detailed information on a few sites  only and none at all from all others. 2. Keep engaged with partner for continuing reality /  practicality check. 3. Involve partner as much as possible in development of  ideas. WCC, Jeju, Sep 2012 ChI /  Slide 17 3
  • 16. Creating sustainable brand value for companies EROSEI Economic Return on Social Conservation Campus 142 Engaging Business for and Environmental Conservation Investment IUCN World Conservation Congress Jeju, South Korea, Sept 11, 2012 © 2012 by GoodBrand and SEMPORA Citizen-consumers entering a new phase with new expectations from companies and brands Era > Crisis > Era > Crisis > Era Context Post-war 70s/80s Age of Financial/ Age of austerity battlegroun Opulence values crisis Meaning d Consumer “I need” “I want” “I belong” Paradigm Typical - Availability ? - More ? - Smarter Brand - Consistency - Bigger - Fitter Messages - Functional - Faster - Wiser performance - Cheaper - Closer - Fairer These changes will redefine how consumer- Critical issue for business: facing companies will compete in the future The smart and wise management of reputation © 2012 by GoodBrand and SEMPORA © 2012 by GoodBrand and SEMPORA Brands will need to connect with the most The opportunity for brands… fundamental human values - to help citizens lead “better” lives: - more meaningful - more responsible - more future-proofed We call this “brand BY social energy” - looking after my family - enhancing my/our potential - helping me/us flourish - investing in my future - helping create a positive legacy HOW - through its products and services, and how they are produced and consumed - through the wider changes it helps create and influence © 2012 by GoodBrand andData Source: Roper SEMPORA © 2012 by GoodBrand and SEMPORA 1
  • 17. Companies need brands with social equity Companies want to measure their social equity performance [social equity] Consumer or public confidence i th values fid in the l and capability of a brand © 2012 by GoodBrand and SEMPORA © 2012 by GoodBrand and SEMPORA The opportunity /chance – building credibility and trust • An online survey representative of all adults The 6 factors of social equity including ethical consumer segmentation (25,000 adult ‘consumers’, 12 countries) • 2000 brands • Questions on social and environmental performance.. • …as well as brand energy, preference, loyalty • Calculation of an index to give a single figure and relative score © 2012 by GoodBrand and SEMPORA © 2012 by GoodBrand and SEMPORA Measuring brands as a force for good and a force The social energy grid for change The Social Energy Grid Social Equity High  integrity but  Trusted  lacking  leaders Perception of company/brand as High integrity ‘force for good’ Trusted Future dynamism but lacking l Equity shapers leaders dynamism Social Dynamic  Brand Energy Social but with  Followers equity questionabl e integrity Perception of company/brand as Dynamic but ‘force for positive change’ Followers with questionable integrity Brand Energy Trusted leaders are perceived as a force for good and a force for change Brand energy They enjoy people’s goodwill © 2012 by GoodBrand and SEMPORA © 2012 by GoodBrand and SEMPORA 2
  • 18. NGOs dominate the social energy field Leveraging relationships with trusted NGOs will help brands be seen as a force for good Social Energy Plot - UK Social Energy Plot - UK © 2012 by GoodBrand and SEMPORA © 2012 by GoodBrand and SEMPORA Zuruck zum Ursprung shows how brands can build positive …reflected in best in class dairy and one of reputations through sustainability actions highest environmental performances Social Energy Plot: Dairy - Organic own label range for Hofer, Austria (part of Aldi) -Builds its brand values by engaging consumers directly with the organisation and its supply chain partnerships, bringing sustainability and community to life for consumers in relevant, interesting ways (e.g. online “meet our farmers” programme) © 2012 by GoodBrand and SEMPORA © 2012 by GoodBrand and SEMPORA Sometimes companies reach a point of realisation Companies undergo a period of significant its time to change reinvention © 2012 by GoodBrand and SEMPORA © 2012 by GoodBrand and SEMPORA 3
  • 19. Coffee companies are boosting their social equity …leading to transformed brand perception performance by showing their work with partners Social Energy Plot - McDonald's 2008 vs 2010 © 2012 by GoodBrand and SEMPORA © 2012 by GoodBrand and SEMPORA This transfers social equity from the partner NGO Kenco coffee UK is getting an environmental to the commercial brand transfer effect from its NGO partner Social Energy Plot - UK Social Equity Factors: Rainforest Alliance vs Kenco Social Equity Factors: Kenco vs Coffee Average © 2012 by GoodBrand and SEMPORA © 2012 by GoodBrand and SEMPORA Thoughts on brand leverage to engage business in partnerships for conservation Important principle 1: Balance Ensure the correct strategic fit operationally not based on communications Plan for long term gradual brand evolution Engage the senior people in the company on planning for brand value creation Securing Focus on tonality F t lit reputation Building trust © 2012 by GoodBrand and SEMPORA © 2012 by GoodBrand and SEMPORA 4
  • 20. Important principle 2: Transparency Important principle 3: Consistency “It’s the most ambitious commitment ever to help smallholder coffee farmers achieve Rainforest Alliance certification and "If you tell the improve coffee truth you don t don't quality quality” Chris Wille, Head of Sustainable Agriculture have to remember The Rainforest Alliance anything.” - Mark Twain Nespresso AAA farmers Meeting Club members in New York © 2012 by GoodBrand and SEMPORA © 2012 by GoodBrand and SEMPORA Important principle 4: Humility © 2012 by GoodBrand and SEMPORA 5
  • 21. Business Ecosystems Training Learn how to train business on Introducing ecosystems Business Ecosystems Training (BET) program Conservation Campus 11 Sept 2012, 09:00-13:00 The business case for training Rationale for developing BET?  72% of CEOs see education as the global development issue most critical to address for  Business both impacts and Business the future success of their business depends on ecosystems Depends Impacts  However, issues tend to be  86% of CEOs think that companies should invest in poorly understood enhanced training of managers to integrate sustainability into strategy and operations t i bilit i t t t d ti  N d t fill k Need to knowledge gaps l d  However, only 60% of them are implementing Ecosystems this Source: United Nations Global Compact CEO Survey 2010 (based on 766 completed responses) 3 4 What is BET? Who is it for?  Business audience  A comprehensive capacity building program that aims  Different levels of management & to equip business with the skills it needs to better seniority understand, measure, manage and mitigate ecosystem impacts and dependencies  Wide range of departments: from SD to procurement to finance  Leverages the wealth of existing WBCSD materials, methodologies and tools, also including other resources Any professional who needs to manage its company’s risks and  Open-source opportunities 5 6 1