SDG INDUSTRY MATRIX - United Nations

SDG INDUSTRY MATRIX (CONTINUED)CDMETHODOLOGYSYNERGIESThe SDG Industry Matrix hasbeen compiled througha participatorythree step process:The SDG Industry Matrixdraws on the commitmentthat companies have alreadyexpressed to the UN GlobalCompact’s ten principles.1.KPMG and the United Nations Global Compact drew on their respective industryinsights to populate a preliminary draft with examples and ideas for action;2.The United Nations Global Compact circulated the draft to its network of privatesector participants, business associations and UN agencies requesting them tosubmit further examples and ideas for action;3. KPMG and the United Nations Global Compact co-convened a multi-stakeholderworking roundtable (one per industry, each in a different continent) to agree the finalSDG Industry Matrix content, including the most significant opportunities to profilein the ‘Industry Focus Highlights’ section.The SDG Industry Matrix builds on the recognition that all companies,regardless of their size, sector or geographic footprint, have a responsibilityto comply with all relevant legislation, uphold internationally recognizedminimum standards and to respect universal human rights. The UNGlobal Compact website includes key tools and resources which can helpcompanies meet their minimum responsibilities and guide them to takesupportive actions beyond these minimum responsibilities to advance socialand environmental goals.The SDG Industry Matrix is also complemented by the SDG Compass(produced by the Global Reporting Initiative, the United Nations GlobalCompact and the World Business Council for Sustainable Development),which guides companies on defining strategic priorities, setting goals,assessing impacts and reporting.Opportunities for Shared Value which are applicable to all industries are in italicsSDG INDUSTRY MATRIX – FOOD, BEVERAGE AND CONSUMER GOODS 6

FOOD, BEVERAGEAND CONSUMERGOODS INDUSTRYFOCUS HIGHLIGHTSThis section profiles some of the mostsignificant opportunities, principlesbased initiatives and collaborationsfor the Food, Beverage & ConsumerGoods industry. The supporting Matrixprovides additional ideas and examplessubmitted by companies(it is not intended to be an exhaustive list).SDG INDUSTRY MATRIX – FOOD, BEVERAGE AND CONSUMER GOODS 7

FOOD, BEVERAGE AND CONSUMER GOODSOPPORTUNITIES FOR SHARED VALUEOpportunities for shared valueThe biggest opportunitiesfor the Food, Beverage& Consumer Goodsindustry to create sharedvalue – i.e. where we seethe coming together ofmarket potential, societaldemands and policy action- are grouped around thefollowing themes:ENTERPRISE DEVELOPMENTSUSTAINABLE SUPPLYPromote inclusive development by increasing the participation ofsmall and medium size businesses in developing economies in valuechains. This includes:Reduce climate impacts by investing in sustainable sourcing,processes, materials, machinery and products across the valuechain, ensuring fair labor practices and promoting traceability ofinputs. This includes:Provide training and best practice guidance to small scaleproducers and retailers, including women-owned businesses, toimprove the productivity, capacity, logistics and market efficiencyof their operationsConnect small businesses and entrepreneurs to capital to growtheir businessCreate markets for local products through innovation and mobiletechnologyPursue investments and cross-sector partnerships to developphysical infrastructure that connects rural communitiesEnact a supplier diversity programReduce natural resources and energy used in agriculture and rawmaterial production, processing, packaging and distributionReduce waste and emissions by reducing chemical byproductsEmbed sustainability criteria in procurement processes andproject evaluationFind alternatives to palm oilIncrease the share of energy from renewable sourcesTake steps to measure, reduce and report climate exposureand set measures of accountability for all parties involved insupply chainsEnhance climate resilience across the supply chainUnderstand end of product use and disposal impactsMonitor and reduce food loss and waste throughout thevalue chainSDG INDUSTRY MATRIX – FOOD, BEVERAGE AND CONSUMER GOODS 8

FOOD, BEVERAGE AND CONSUMER GOODSOPPORTUNITIES FOR SHARED VALUEOpportunities for shared value(CONTINUED)HEALTHY, SUSTAINABLE LIVINGPRODUCT INNOVATIONEngage with consumers, employees and partners to increaseawareness and understanding of sustainable consumption andhealthy living, including:Connect with local communities to develop products which alignwith the needs of developing economies, thereby opening upmarkets and increasing future demand, including:Develop consumer knowledge around sustainable agriculture andconsumer products, and encourage recycling and sustainabledisposal of productsOffer products which are tailored to the requirements andpreferences of consumers in developing economies, involvinglocal producers where possibleHelp consumers and employees adopt healthier lifestyles byraising consumer awareness of the importance of nutritious diets,physical activity, personal care and hygieneIncrease the availability of low cost options accessible to lowincome consumersSupport high level partnerships and industry associationsadvocating for responsible public policies on climate changeDevelop innovative solutions to meet challenges faced bydeveloping communities, including lack of potable water,nutritious food and energyIncrease organizational awareness of the sustainability aspects ofproducts, including product design, use and disposalMulti-stakeholder partnerships and collaborations will become increasingly important in realisingthese shared value opportunities. There is critical momentum of activity and the opportunity forshared value has never been greater.SDG INDUSTRY MATRIX – FOOD, BEVERAGE AND CONSUMER GOODS 9

FOOD, BEVERAGE AND CONSUMER GOODSGOOD PRACTICE PRINCIPLESAND INITIATIVESGood practiceprinciples and initiativesCERTIFICATION SCHEMESIn addition to the UN GlobalCompact’s ten principles inthe areas of human rights,labor, the environment andanti-corruption, there area number of good practiceprinciples and initiativeswhich align with the Food,Beverage and ConsumerGoods industry’s contributionto sustainable development.These include the following:FOREST STEWARDSHIP COUNCIL(FSC)This council serves to promote responsible forestmanagement worldwide. The company enablesbusinesses and consumers to make informed choicesabout the forest products they buy. Membersinclude some of the world’s leading environmentalNGO’s, such as the World Wide Fund for Nature andGreenpeace. Together, the members work to definebest practices for forestry by setting the FSC Principlesand Criteria- the highest standards of appropriateforest management. As the world’s most respectedforest certification scheme, FSC is a global systemwith certificates issued in all forest types around theworld.PROGRAMME FOR THEENDORSEMENT OF FORESTCERTIFICATION (PEFC)This is the world’s largest forest certification system.Certification demonstrates that managementpractices meet requirements for best practice insustainable forest management including biodiversity,ecosystem services, natural alternatives to chemicals,workers’ rights, local employment, indigenouspeople’s rights, and legal compliance. In addition toForest Certification, PEFC offers Chain of CustodyCertification and Project Certification.MARINE STEWARDSHIP COUNCIL(MSC) ECOLABELROUNDTABLE ON SUSTAINABLEPALM OIL (RSPO)The blue ecolabel indicates seafood has come froma sustainable fishery that has met the MSC FisheriesStandard. Businesses trading in these productshave met the MSC’s Chain of Custody Standard fortraceability. In order to get certified, fishery clientswill appoint an accredited certification body to assesstheir practices against the MSC standard which coversthree principles: sustainable fish stocks, minimizingenvironmental impact, and effective management.RSPO aims to transform markets to makesustainable palm oil the norm. The RSPO has over2000 members globally that represent 40% of thepalm oil industry. Palm oil producers are certifiedthrough strict verification of the production processwith the stringent RSPO Principles & Criteria forSustainable Palm Oil Production by accreditedCertifying Bodies, and can be withdrawn at any timein case of infringement of the rules and standards.All organisations in the supply chain that useRSPO certified sustainable oil products are auditedto prevent overselling and mixing palm oil withconventional (or non-sustainable) oil palm products.These organisations can claim the use of RSPOcertified sustainable oil palm products “on pack” byusing the RSPO Trademark.BONSUCROThis global, non-profit, multi-stakeholder organisationfosters sustainability in the sugarcane sector throughits leading metric-based certification scheme. Membershave grown to over 400 members from 32 countries.The main aim of Bonsucro is to promote measurablestandards in key environmental and social impacts ofsugarcane production and primary processing, whilerecognizing the need for economic viability.BASEL CRITERIA FOR RESPONSIBLESOY PRODUCTIONThese criteria provide a working definition ofacceptable soy production that can be used byindividual retailers or producers, and also work toenable businesses to source their soy from farmsthat are managed in a responsible way. The criteriaaddress several issues such as legal compliance,environmental criteria, forest conversion and workers’rights. Verification of compliance with the criteria is tobe carried out by independent bodies.ROUND TABLE ON RESPONSIBLESOY (RTRS)This civil organization promotes responsibleproduction, processing, and trading of soy on aglobal level. Members include main representativesof the soy value chain, as well as members of civilsociety from around the world. The Round Table hasresulted in the formation of the RTRS Standards forResponsible Soy Production, which assures that soyproduction is socially equitable, economically feasibleand environmentally sound.SDG INDUSTRY MATRIX – FOOD, BEVERAGE AND CONSUMER GOODS 10

FOOD, BEVERAGE AND CONSUMER GOODSGOOD PRACTICE PRINCIPLESAND INITIATIVESGood practiceprinciples and initiatives(CONTINUED)CERTIFICATION SCHEMESFAIRTRADEThis movement for change works directly withbusinesses, consumers and campaigners to maketrade deliver benefit for farmers and workers. Theinternational Fairtrade system represents the world’slargest and most recognized fair trade system. TheFAIRTRADE Mark means that the ingredients in theproduct have been produced by small-scale farmerorganisations or plantations that meet Fairtradesocial, economic and environmental standards. Thestandards include protection of workers’ rights andthe environment, payment of the Fairtrade MinimumPrice and an additional Fairtrade Premium to invest inbusiness or community projects.UTZ CERTIFIED TEA, COFFEE ANDCOCOAROUNDTABLE ON SUSTAINABLEBIOMATERIALS (RSB)This certification stands for sustainable farming andbetter opportunities for farmers, their families and ourplanet. It includes independent third party monitoringagainst strict requirements, including good agriculturalpractices and farming management, safe and healthyworking conditions, abolition of child labor andprotection of the environment.This independent, global, multi-stakeholder coalitionworks to promote the sustainability of biomaterials.RSB’s user-friendly certification scheme verifies thatbiomaterials are ethical, sustainable andcredibly-sourced.SA8000 STANDARDRAINFOREST ALLIANCEPRO TERRA FOUNDATIONThis foundation convenes conferences and seminars,both in production and consumption countries, toraise awareness of the need for more sustainableagricultural production systems. ProTerra has a strongfocus on non-genetically modified organisms, butits standard for sustainable production includes allrelevant environmental and social aspects.This international non-profit organization works toconserve biodiversity and ensure sustainable livelihoods.Products that bear the logo of the little green frog, whichserves as the seal, represent items that originate in orcontain ingredients sourced from Rainforest AllianceCertified farms or forests. These farms and forestsare rigorously managed in order to conserve wildlifeand increase livelihoods in order to achieve long-termsustainability.Social Accountability International established oneof the world’s first auditable social certificationstandards for decent workplaces, across all industrialsectors. It is based on the UN Declaration of HumanRights, conventions of the ILO, UN and national law,and spans industry and corporate codes to create acommon language to measure social performance.It takes a management systems approach by settingout the structures and procedures that companiesmust adopt in order to ensure that compliance withthe standard is continuously reviewed. Those seekingto comply with SA8000 have adopted policies andprocedures that protect the basic human rights ofworkers.SDG INDUSTRY MATRIX – FOOD, BEVERAGE AND CONSUMER GOODS 11

FOOD, BEVERAGE AND CONSUMER GOODSGOOD PRACTICE PRINCIPLESAND INITIATIVESGood practiceprinciples and initiatives(CONTINUED)STANDARDSFOOD LOSS & WASTE PROTOCOLA multi-stakeholder effort, led by the World ResourcesInstitute, is developing the global accounting andreporting standard for quantifying food and associatedinedible parts removed from the food supply chain(referred to for simplicity as ‘food loss and waste’).It is expected to be published in 2016, enabling awide range of entities - countries, companies andother organizations - to account for and report ina credible, practical and internationally consistentmanner how much food loss and waste is created andidentify where it occurs, informing targeted effortsto reduce it. The Protocol’s forthcoming Food WasteStandard is being produced in collaboration with theConsumer Goods Forum, the UN Food and AgriculturalOrganisation (FAO), FUSIONS1, the UN EnvironmentProgramme (UNEP), the World Business Council forSustainable Development (WBCSD) and WRAP2 (aregistered charity whose mission is to accelerate themove to a sustainable resource-efficient economy).GLOBAL PROTOCOL ON PACKAGINGSUSTAINABILITY 2.0BETTER COTTON STANDARDSYSTEMThe Consumer Goods Forum created this protocol toprovide the consumer goods and packaging industrieswith a common language with which to discuss andassess the relative sustainability of packaging. Thatcommon language consists of a framework and ameasurement system. It takes into account socialand economic metrics which are both flexible andmodular. The Protocol can help answer a wide rangeof business questions, either within a business orbetween business partners.This system provides a holistic approachto sustainable cotton production, coveringenvironmental, social and economic sustainability. Itis designed to ensure the exchange of good practices,and to encourage the scaling up of collective action toestablish Better Cotton as a sustainable mainstreamcommodity. The system comprises six elements:‘Production Principles and Criteria, Capacity Building,Assurance Program, Chain of Custody, Claimsframework, and Results and Impact.FUSIONS (Food Use for Social Innovation by Optimising Waste Prevention Strategies) is a project working towardsa more resource efficient Europe by significantly reducing food waste.12WRAP is a registered charity whose mission is to accelerate the move to a sustainable resource-efficient economy.SDG INDUSTRY MATRIX – FOOD, BEVERAGE AND CONSUMER GOODS 12

FOOD, BEVERAGE AND CONSUMER GOODSGOOD PRACTICE PRINCIPLESAND INITIATIVESGood practiceprinciples and initiatives(CONTINUED)TOOLSHIGH CONSERVATION VALUE (‘HCV’)NETWORKGLOBAL FOREST WATCH (GFW)COMMODITIESHCV is a practical tool created to identify, manage andmonitor critically important environmental and socialvalues in production landscapes. High ConservationValues are biological, ecological, social or culturalvalues which are considered outstandingly significantor critically important, at the national, regional orglobal level. More than 9 certification schemes,56 private sector organisations and 12 financialinstitutions include HCV as a requirement in theirglobal procurement and investment policies.This business tool addresses deforestation in commoditysupply chains. It is a dynamic online forest monitoringand alert system that unites satellite technology andopen data to guarantee access to timely and reliableinformation about forests. GFW Commodities drawson timely and reliable information to provide businessrelevant analyses through several tools, including: theForest Analyzer, Suitability Mapper, and RSPO assessmenttools. GFW Commodities is committed to open andreliable analysis, and strives for transparency in themethods behind the data available through our tools. GFWis a multi-stakeholder partnership convened by the WRI.NATURAL CAPITAL PROTOCOLThe Natural Capital Coalition is developing this protocolto enable businesses to assess and better manage theirdirect and indirect interactions with natural capital. Itwill provide clear guidance on qualitative, quantitativeand monetary valuation of natural capital impactsand dependencies and when to apply each level ofassessment. The Natural Capital Protocol will supportcompanies in their decision-making and can be usedfor a range of applications including risk management,exploring new revenue streams, improving products andvalue chain innovation, as well as preparing for futurereporting and disclosure.SUSTAINABLE PROCUREMENTGUIDE FOR WOOD AND PAPERBASED PRODUCTSThis guide is designed to help sustainability andprocurement managers make informed choices onthe forest products they buy. It identifies key issuesthat underpin responsible procurement of wood andpaper-based products and provides resources and advicethat address each issue. This toolbox helps to developand implement procurement policies that reduce riskand create transparency throughout supply chains andultimately support sustainable forest management.PULP, PAPER & PACKAGINGGUIDELINESThe Consumer Goods Forum developed theseguidelines to assist companies in the developmentof their own policies for sourcing pulp, paper andpackaging, and offer several recommendations onhow to get there.SDG INDUSTRY MATRIX – FOOD, BEVERAGE AND CONSUMER GOODS 13

FOOD, BEVERAGE AND CONSUMER GOODSMULTI-STAKEHOLDER PARTNERSHIPSAND COLLABORATIONSMulti-stakeholder partnershipsand collaborationsThe SDG Industry Matrixincludes several examplesof collaborations whichadvance sustainabledevelopment. Of these,some of the largest globalcollaborations for Food,Beverage and ConsumerGoods include:EAT INITIATIVETogether with the Stockholm Resilience Centre, theNorwegian-based Stordalen Foundation has initiatedEAT – an international consortium of government,world leading universities and research institutions,philanthropic foundations, non-government actors andorganisations, and companies, which all share thecommon understanding that it is essential to collectivelyaddress the issues of food, health and sustainabilityacross the fields of academia, business, politics and civilsociety to ultimately be able to feed 9 billion healthypeople within safe planetary boundaries.SCALING UP NUTRITION MOVEMENT(SUN)Founded on the prin

for the Food, Beverage & Consumer Goods industry. The supporting Matrix provides additional ideas and examples submitted by companies (it is not intended to be an exhaustive list). FOOD, BEVERAGE AND CONSUMER GOODS INDUSTRY FOCUS HIGHLIGHTS SDG INDUSTRY MATRIX - FOOD, BEVERAGE AND CONSUMER GOODS 7