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Driving Sustainable Standards Globally and Locally
- 1. Nationally Driven Sustainability International Supply Chain Management Congress Amsterdam, 29 Nov, 2012 Shatadru Chattopadhayay
- 2. 4 issues covered 1. Whether Asian markets ready for sustainable transition? 2. Why do we need locally owned sustainability standards in Asia? 3. How do they relate to international sustainability standards? 4. Why should global North should engage with this agenda?
- 3. Consumers in Rapid Growth Economies (RGEs) appear to care more than their Western colleagues China, India, Indonesia, UAE, Brazil USA, Western Europe Source - Edelman goodpurpose® 2012
- 4. BBMG, GlobeScan and SustainAbility, November 2012
- 5. Sustainability spectrum BBMG, GlobeScan and SustainAbility, November 2012
- 6. Our Survey in Two Major Indian Cities Show-> 50% Indian Consumers considers certified tea & Coffee is IMPORTANT not important at all not so important highly important indifferent important
- 7. And 45% are willing to pay 5 to 10 Percent extra for such product Yes Not w illing to pay e 76-100% 51-75% 26-50% 11-25% No 5-10% <5%
- 10. New Sustainable Outlets are coming up in India
- 11. The need for locally owned standards 1. The top down-fit all approach of global standards is resisted by the stakeholders even when there is a export market. Cultural issues come on the way. 2. Governments are getting active in the field of sustainability by developing voluntary systems themselves. (E.G. ISPO from Indonesia, China Social Compliance 9000, IS 16001 from India). 3. India, China and Brazil are the biggest producer and consumer of most agro-commodities. Yet, most international standards do not operate in these markets. 4. International standards are costly to implement in a low margin business model of Asia. 5. Global businesses are increasingly seeking to provide sustainable products to all customers in all markets.
- 12. One size doesn’t fit all
- 13. Tea Markets In Million Kilograms 91.83 20.72 191.1 208 292.24 162.5 410.35 Partially Certified West Europe East Europe America West Asia Asia other than West North Africa Africa other than north Oceania Even if the total tea markets of West Europe and Americas are Certified-90% of Tea Would Still Remain Unsustainable Not Certified 2219.02
- 14. Local standards v/s International-Common Concerns • Start with what is local and what is international? • Local standards reduces the sustainability criteria and have less credibility? • The local standards could be base line or “stepping stone” standards to international ones? • More standards/codes are bad as it increases the cost and confuses stakeholders? • The governance of local standards are weak? • More……..?
- 15. International and Local standards-how to relate • Standards are tools for sustainable change. The challenges are so vast that all can co-exist. • The domestic standards will be mostly targetting high-hanging fruits-potential clients for international standards. • May fuel innovation and lead to more efficient systems
- 16. A potential learning from aviation industry?
- 17. Why should global North engage? • The agro-commodities like tea, coffee, sugarcane, cotton, fruits, vegetables, livestock, soy , palm oil which has a huge impact on land and water are mostly produced and consumed in emerging markets of India, China and Brazil. • A level playing field for businesses from North to participate in outperforming markets of Asia. • Sustainable agriculture will act as a future bridge between needs of feeding the 9 billion population in 2050 and a increasing global requirement of feed, fiber and fuel.
- 18. Conclusion • Major Asian markets are ready for sustainable transition • Large scale transformation of Asian agriculture sector covering more than half of world population requires local solutions • Existing international standards could co-exist along with the standards emerging from new markets. • There is one planet and there is one agenda!
Hinweis der Redaktion
- And consumers in Rapidly Growing Economies including India are more trusting of and loyal to brands that are socially and environmentally responsible compared to Western counties such as the UK and US.
- Consumers in developing markets (Brazil, China, India) are more than twice as likely as their counterparts in developed markets (Germany, United Kingdom, United States) to report that they purchase products because of environmental and social benefits (51% to 22%), are willing to pay more for sustainable products (60% to 26%) and encourage others to buy from companies that are socially and environmentally responsible (70% to 34%). (
- The largest consumer segment, the Aspirationals, is seeking both sustainability and consumption. They are looking for brands to provide solutions that both improve their lives and serve the larger society. And, because they are trendsetters in emerging markets like China and India, we believe business has the opportunity to shape a new consumerism by meeting their aspirations and desires with more sustainable products and lifestyle choices.
- Following codes and documenting them is always about a culture. For. E.g. in oral tradition in India does not allow extensive documentation of all the activities.The larger political issue is who defines finer prints of what is “credible sustainability”?Global businesses are increasingly benchmarking their own sustainability principles with different international and local codes
- More codes are bad as it increases cost: We have a different take on that. Having national codes will actually push other standards operating from outside the country to reduce their costs to remain in business. More economical models developed in a bottom-up manner need not be because it is diluting the standards or have a weaker implementation but could be because it is more efficient business wise.
- This type of agreement, widespread in the air transport industry, allows carriers to expand their networks, optimizing the use of resources and fleets while giving their customers more destinations, more flights and more convenient schedules as well as the opportunity of earning or spending miles whenever there is also a reciprocal agreement on customer loyalty programs.