Structural Characteristics of Reinforced Palm Kernel Shell ...
Renewables & sustainable sourcing – a must-have. FORM.pdfRenewables & sustainable sourcing – a...
Transcript of Renewables & sustainable sourcing – a must-have. FORM.pdfRenewables & sustainable sourcing – a...
1 | Who drives sustainability?
2 | Challenges in sustainable sourcing for renewables – example fish oil
3 | How certification works – example palm
4 | Key success factors for change
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BASF Human Nutrition3
Paradigm shift in business steering accelerating
Source: forest500.org
World economy moving towards holistic business
steering
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Who is driving whom?
Ranking environmental policies of key power brokers on deforestation for
50 others (incl. NGOs)
150 investors50 jurisdictions250 companies
Push & pull for sustainability across the nutrition value chain
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Transparency
Social media enable transparency on air pollution & drive change, e.g. Institute for Public & Environmental Affairs
Investors & NGOs
Forest500 - analyzing forest conservation policies and reporting ratings
Retail
Walmart, Aldi, etc. define sustainability KPIs for suppliers & position “sustainability leaders”
Main drivers for sustainable sourcing
No sustainability – no business?
What is your organization's approach to including certified fish oil, including fish oil derivative ingredients, in your products?
Does your organization formally assess resource conservation, material and process efficiency, and weight or volume optimization in this product’s sales packaging?
Exemplary retailer KPIs
Source: The Sustainability Consortium, Membership Portal – May-2016; above text shortened excerpt from original
Example Vitamins & Supplements
Excerpt from DRAFT
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From drivers to action
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public opinion facts and details
human health risk indexX customer requests
environmental impact scoringlink to NGO focus topics
Country risk assessmentchild labor
biodiversity loss
lost of habitat
haze in Indonesia
forced laborEmotion Analysis
Driv
erFo
cus
Business opportunity in making the most of both
Analysis the basis for differentiation
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Step 1: Analyze & define relevant sustainability challenges
Step 2: Check coverage through credible certifications
Step 3: Evaluate market dynamics incl. supply chain
Stepwise approach to a sustainable sourcing strategy
Step 1: Analyze & define relevant sustainability challenges
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Defining BASF criteria for Omega-3 sourcing
Environment Social Responsibility
2013 2014Hot Spot Mapping
No endangered fish from IUCN red list
No dynamiting/ poisoning No IUU practices Emissions & waste
reduction By-catch avoidance Recording/ controlling of
activities
Compliance with EHS standards
Support of internationally proclaimed human rights
No forced/ child labor
Our practical experience in fish oil sourcing
Step 2: Check coverage through credible certifications
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Certification scheme 1
Certification Scheme 2
Certification Scheme 3
Criteria 1
Criteria 2
Criteria 3
Criteria 4
Criteria 5
Credibility +
1. We constantly ensure a profound understanding of the supply chain and sustainability requirements
2. We assess suppliers continuously
3. We foster dialogue and cooperation
If core criteria are not met, we take immediate actions
Clear principles ensure sustainable sourcing
Our practical experience in fish oil sourcing
Third party validation of BASF approach2014 2015Assess certification schemes
Step 3: Evaluate market dynamics incl. supply chain
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Fishery Fishmeal & fishoil
Retailer/ consumerMarketer Omega-3
refineryCapsulation/packaging
In dialogue with Member of
Board member of
Reality check & dynamics
Peer dialogue & joint forces
Consumer insights & dynamics
Our practical experience in fish oil sourcing
Fish oil
Sustainability maturity of supply chain
Sustainable sourcing strategy depends on maturity in the supply chain
Need for individualized approach
Sustainable sourcing strategy depends on maturity in the supply chain
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Fish oilPalm oil Coconut oil
Sustainability maturity of supply chain
Need for individualized approach
Renewable raw materials not necessarily sustainable
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Half of world’s tropical forests have been cleared or degraded (FAO)
Tropical forest stores high amounts of carbon 15% of global GHG emission caused through deforestation (WWF)
80% of the worlds documented species found in tropical rainforest (WWF)
Oil palm plantations can contribute significantly to deforestation, loss of biodiversity and climate change from the loss of peatland
Why is Palm important? Most efficient edible oil Oustanding performance characteristics Palm was the 1st industrial agricultural crop that
has addressed sustainability
How to drive sustainable palm? Roundtable on Sustainable Palm OiI (RSPO) is a
strong global multistakeholder forum founded in 2004
BASF joined the RSPO in 2004
By sourcing palm from certified plantations one can counteract
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2-0010-04-100-00
Source: The Sustainability Consortium, Membership Portal – May-2016; above text shortened excerpt from original
BASF reviewed own policy – as pressure increased
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Nutrition value chain
Players and interests in the palm arena
Suppliers and Supply Chain
NGOs
Customers(Retailer, FMCG)
Pressure to take ownership Expect soon a “no deforestation“ commitment Asking BASF for public visibility
“No deforestation” commitments
Traceability commitments Limited physical market
transformation into RSPO
Supply chain complexity Availability of RSPO
Material
NGOs seek commitments beyond RSPO standards
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New – beyond RSPOBASF expands its commitment to palm- and palm kernel oil fractions, primary palm- and palm kernel oleo chemical derivatives and edible oil esters by 2025
Establishing upstream traceability of palm and palm kernel oil until 2020 and for the derivatives until 2025
Introducing a forest and peat conservation palm sourcing policy
Targeting smallholderinclusion & projects
Forum to exchange & continuous reporting
Continue Current BASF’s goal is to only source RSPO certified sustainable palm and palm kernel oil.Supporting physicaltransformation of the market
New
Prod
uct l
evel
Cor
pora
te le
vel
Example BASF’s new palm commitment
No claim without certification of every value chain step
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Retail
Marketer
Producer
Raw material
Certified plantation practice
Chain of custody
Chain of custody
Chain of custody
Chain of custody
Origin
A truly joint journey - everyone needs to contribute
Required RSPO supply chain certification
No certification unless all criteria are met
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Checklist for one business entity
How you can check?What?
1 Company is RSPO member www.rspo.org/members/all
2 Manufacturing facility is RSPO certified www.rspo.org/members/47/BASF-SE
3 Manufacturing facility uses enough RSPO certified raw material
Cannot be checked by outsider
4 Sales material is RSPO Mass Balance certified
RSPO Mass Balance printed on delivery papers
Typical questions we get asked and ask
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What is your time-bound plan to offer certified products?
What are your Corporate commitments beyond RSPO?
Hard to make everyone happy – define what you are standing for
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Suppliers and Supply Chain
NGOs
Customers(Retailer, FMCG)
Nutrition value chain
Sense of urgency & business rationale
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Urgency: create a belief that “change is needed” – a business opportunity
Small working packages enable fast progress
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Tangible actions: make it concrete and operational – small work packages
Urgency: create a belief that “change is needed” – a business opportunity
Internal discussions are your training camp
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Inclusion: involve different roles (internal & external)
Urgency: create a belief that “change is needed” – a business opportunity
Tangible actions: make it concrete & operational – small work packages
Communicate what you stand for
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Commit: go public
Keep going !
Inclusion: involve different roles (internal & external)
Urgency: create a belief that “change is needed” – a business opportunity
Tangible actions: make it concrete & operational – small work packages
Risk management
Fulfilling needs
Trend setting
Gain value through cutting edge solutions
Reputational risk -loosing credibility
Increase credibility through tangible proof points
Core value driverValue for business
What is your target area?
Strategy to fit company culture and market environment
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Model for sustainability as value driver
The currency is trust in you – your company – your supply chain
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Our findings
Consumers seek orientation, confused about labels
Brands provide orientation
Companies held accountable for value chains
Combining capabilities to drive sustainability & differentiation
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We could contribute Hands-on experience in
sustainable sourcing of renewables
RSPO certification expertise
Scientific sustainability know-how
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