A framework for sustainability innovation in agri-business

The corporate implementation of the Principles for Responsible Investment in Agriculture and Food Systems (CFS-RAI) and the United Nations Sustainable Development Goals (SDGs) A framework for sustainability 2 innovation in agri-business

Content Authors

Foreword 3 Earth Security Group are strategic advisors helping companies, investors Executive Summary 4 and governments to engage with sustainability issues that are shaping 1 Introduction 6 their markets, aligning business growth Sustainability drivers of with sustainable development goals. agri-business innovation [email protected] 2 The Framework 8 earthsecuritygroup.com The 10 Principles for Responsible Investment in Agriculture and Food Systems (CFS-RAI) and the SDGs

3 Recommendations 30 The corporate implementation of CFS-RAI and SDGs

Acknowledgements 32

Endnotes 33

Copyright © Earth Security Group 2018

Disclaimer The views and opinions expressed in this report are solely those of Earth Security Group.

Note All currency $ refers to US dollars.

Strategic Partners Funding Partner A framework for sustainability 3 innovation in agri-business

Foreword

Investing in agriculture is widely The formation of the Global Agri- recognised as one of the most effective business Alliance (GAA), a CEO-led ways to alleviate poverty, improve platform to collaborate on the sector’s food security and reduce hunger global challenges and opportunities and malnutrition. Paradoxically, both for sustainable development impact, overseas development aid and domestic and the context of the World Business investment in agriculture have been Council for Sustainable Development declining since the 1990s. The total share (WBCSD)’s broader work facilitating the of aid to agriculture from the OECD has business collaborations on food systems, fallen from nearly 20% in the mid 1980s represent opportunities to achieve and to a mere 7% in 2015 and has remained operationalise greater strategic thinking at this level since. in how global business will advance solutions and responsible investments There is now a growing recognition of the that respond to critical social and value of the private sector’s contribution environmental pressures. to sustainable development in agriculture, not merely from the financial Earth Security Group is providing a contribution that the sector can make, strategic framework for agri-businesses but for the scale, longevity and impact, to invest in areas of sustainable growth, technical and market access that can backed by a series of innovative business only be brought by the private sector. models and cross-sector cooperation opportunities. Their translation of the The UN Sustainable Development Principles for Responsible Investment Goals (SDGs) have specific targets for in Agriculture and Food Systems (CFS- the private sector. According to the RAI) and SDG targets into a business ‘Better Business, Better World’ report implementation framework will help of 2017, achieving the SDGs creates at the sector’s continuous improvement least US$12 trillion in opportunities, in impact measurement and strategic with many returns to be generated in cross-sector collaboration. the agricultural sectors. The report estimates that low-income food markets We are pleased to have collaborated with could generate between US$155–265 Earth Security Group. We intend that this billion per annum and at the same time report will serve as a guide for investors improve the nutritional benefits of food and agri-business companies to plan for 800 million people under nourished for targeted, inclusive and sustainable and malnourished. investments that ensure optimal returns in agricultural value chains and At the same time, global agricultural prosperity for all farmers. companies are confronting a more complex set of systemic social and Sunny Verghese environmental pressures around the Co-Founder and Group CEO, world. Seizing opportunities to make Olam International Ltd; more responsible investments at scale Chair, World Business Council and materialising the benefits will for Sustainable Development require strategic industry cooperation at various levels and with different stakeholder groups. A framework for sustainability 4 innovation in agri-business

Executive Summary

Fully realising the potential of agri-businesses In this report, Earth Security Group provides in food and non-food crops to become stewards agri-businesses with a practical framework to of natural resources and vibrant farming implement the 10 Principles for Responsible communities is essential to companies’ long- Investment in Agriculture and Food Systems term value. Their customers and investors are (CFS-RAI) and the UN Sustainable Develop- increasing their scrutiny of the impact that agri- ment Goals (SDGs) as a means to align their businesses have on natural capital — such as growth strategies with a universal impact deforestation and biodiversity loss — and social framework for sustainable agriculture. issues, such as human rights and decent work, land tenure security and gender empowerment. Overall, the social, environmental and govern- ance issues that companies must think about and respond to have continued to grow in recent years.

Recommendations for agri-businesses

1 2 3 Adopt CFS-RAI and SDG targets Use CFS-RAI and SDG targets as a basis Draw on CFS-RAI and SDG targets to as a strategic framework to guide for impact measures to monitor and develop holistic strategies to advance corporate strategy communicate corporate progress smallholder development

The scope of sustainability issues that Promoting continual improvement is Improving the livelihoods of smallholder are directly material to the operations of key for agri-businesses to successfully farmers is one of the biggest imperatives agri-businesses is very wide. Companies integrate sustainability drivers into for the sustainable growth of the sector. must assure their stakeholders that their core business. In order to do this, A holistic local development framework their business priorities are aligned it is necessary for companies to build a is needed, addressing a range of issues with a holistic approach to sustainable framework that allows them to measure – from helping farmers to increase their agriculture, rather than isolated issues and benchmark their progress on a wide incomes and productivity, to facilitating or initiatives that companies may feel scope of issues. In selecting areas for extension services that improve education, compelled to work on at any given point in impact measurement, companies must skills and access to markets. time. balance the issues they see as aligned with corporate values, and those that The models and partnerships identified The legitimacy of the CFS-RAI as a are aligned with the expectations of their in this report show that agri-businesses consensus-driven, comprehensive stakeholders. The CFS-RAI and SDG are most effective at supporting framework for sustainable agriculture targets provide agri-business companies smallholders when they collaborate with and food systems is born out of an with the external framework to ensure other stakeholders, such as civil society, alignment of interests between business, their performance is aligned with all the financial institutions and governments. governments and civil society. Companies aspects of this complex agenda. should consider making the CFS-RAI By covering a wide range of development an integral part of their global vision, In order to help companies to define aspects, the CFS-RAI principles provide mission and strategy using it as a broad a comprehensive and, in the eyes agri-businesses with a useful framework framework to assure stakeholders that of stakeholders, legitimate impact of issues and SDG targets to assess, plan they are focusing on the right issues. framework, we have aligned CFS-RAI with and engage in smallholder development Ultimately, such a framework will help specific SDG targets that are material for initiatives. Using this framework will help companies make explicit how their impact agri-businesses. This framework helps agri-businesses to better engage with priorities and opportunities in the short-, companies that are already seeking to other stakeholders, discuss common medium- and long-term align with the impact the SDGs to go one step further aims and interests, and monitor and universal principles and aspirations of the in their implementation and definition of communicate their impact. sustainable agriculture agenda. impact objectives and metrics. A framework for sustainability 5 innovation in agri-business

4 5 Use CFS-RAI and SDG targets to deepen Use CFS-RAI and SDG targets to define — The empowerment of young people in the collaboration of agri-businesses priority areas of collaboration of agri- farming areas and the promotion of with governments and multilateral businesses on systemic issues youth entrepreneurship, to ensure the development agencies inter-generational development of the Through platforms such as the Global industry (Principle 4); Responsible agri-businesses depend on Agri-business Alliance (GAA), the governments providing a level playing field World Business Council for Sustainable — The promotion of community land rights to maintain their competitiveness. They Development (WBCSD) and other and the contribution of companies must ensure that every other company corporate networks, agri-businesses are to helping smallholder farmers gain operating in the same landscape is also seizing opportunities to collaborate with access to the ownership of their land as compelled to behave responsibly; and each other on global priorities. part of inclusive agricultural production government policies are the only way to systems (Principle 5); achieve this market-level scale. Individual companies in the food and agriculture sector are active across — The promotion of genetic diversity and By collaborating with national, many of the CFS-RAI principles and are the implementation of benefit-sharing regional and local governments, agri- seeking an alignment with the SDGs. On with local communities and indigenous businesses have been able to create some principles, such as ‘contributing groups from the use of traditional regional corridors that facilitate better to food security and nutrition’ (Principle genetic knowledge in agriculture infrastructure investments; agree national 1), companies are actively developing (Principle 7); competitiveness policies that encourage initiatives. Here a stronger emphasis on better corporate investments in local measuring progress is needed. — The establishment of science-based processing; and, recently, begin to work on targets for the safe and healthy use jurisdiction-wide approaches to promote However, we identify at least five CFS- of nutrients in agriculture grounded responsible commodity production on a RAI Principles where the pre-competitive in pilot regions and implementation larger scale. collaboration of agri-businesses is lagging roadmaps that can be actively behind, and where companies working monitored (Principle 8); and The collaboration of agri-businesses with together through innovative partnerships governments holds the most potential to could have a significant impact and scale — The implementation of jurisdictional facilitate sustainable production at scale. on issues that matter to their bottom line. approaches to embed sustainability into The CFS-RAI principles and SDG targets landscape level planning with regional provide agri-businesses and governments Emerging areas for corporate governments, facilitating collaboration with a common language to engage and collaboration are: of companies that are operating in the collaborate on common objectives. same region (Principle 10).

The Global Agri-business Alliance The Principles for Responsible Investment in (GAA) Agriculture and Food Systems (CFS-RAI)

GAA presents an opportunity for industry leadership. Developed by the Committee on World Food Security in Launched in 2016, GAA brings together producers, traders, 2014 through a consultation process with governments, fertiliser and agro-chemicals manufacturers, seed civil society and the private sector, the CFS-RAI Principles suppliers, primary processors and agri-tech suppliers of provide agri-businesses with a holistic framework to develop food and non-food crops. Hosted by the World Business and communicate their approach to sustainable agriculture. Council for Sustainable Development (WBCSD), GAA seeks CFS-RAI cover the whole range of sustainability issues that to help companies to share best practices and collaborate are material to companies as well as to the aspirations of on common approaches to sustainable agriculture. In the their stakeholders. The UN Sustainable Development Goals GAA agricultural producers have come together to develop (SDGs) and the SDG targets reinforce the content of the common approaches to sustainability in the context of the CFS-RAI, providing a basis for common metrics. UN Sustainable Development Goals (SDGs). A framework for sustainability 6 innovation in agri-business

1 Introduction Sustainability drivers of agri-business innovation

The opportunities and challenges ahead for agricultural producers

Fully realising the potential of agri- Investors are becoming more aware Increasing smallholder farmer businesses to become stewards of and responsive to sustainability risks incomes and building sustainable rural natural resources and vibrant farming in their agri-business investments. economies is critical to the sustained communities is essential to companies’ The Business and Sustainable success of global agri-businesses. long-term value. Development Commission has Smallholder and family farming still Companies in the sector — covering estimated that sustainable business accounts for the largest share of food and non-food crops — are highly model innovation could open economic food production worldwide. They are dependent on smallholder farmers and opportunities worth nearly $2.3 trillion a key enabler of agri-business value the stability of natural ecosystems, in the food and agriculture sector.5 chains in highly-profitable global such as healthy soils and predictable However, the progressive loss of natural commodities such as coffee and cocoa, weather. Companies are increasingly capital is also estimated to put up yet smallholders remain largely poor. vulnerable to growing sustainability to $11 trillion of assets at risk in the They lack opportunities to improve risks and scrutinised by their customers, agricultural sector annually, impacting their incomes, education, land tenure consumers, investors and governments not only farm assets but also processing security, food security and build a better over their response to them. plants, transportation and distribution future for younger generations, which networks.6 The risks and impacts of tend to migrate to cities. Improving the business as usual are significant. Large livelihoods of smallholder farmers is Valuable commodities such as palm oil, investors are asking difficult questions. one of the biggest imperatives for the timber, soy and cattle products continue In 2015, Norway’s Government Pension sustainability of the industry. This requires to drive deforestation.1 Fund Global, the world’s largest tackling development in a holistic way: Deforestation accounts for around sovereign wealth fund, went further and lifting people out of poverty by increasing 17% of global carbon emissions, the divested from 11 companies — including incomes, farming techniques and second largest source after the energy six palm oil companies — over their productivity, access to markets, education sector. 2 In 2016, a record 29.7 million connections to deforestation.7 HSBC has and skills, working through innovating hectares of tree cover were lost – an area adopted an active approach to support out-grower models and, increasingly, equivalent to the size of New Zealand.3 sustainable palm oil. In February 2017, ensuring that approaches to natural As temperatures rise above 2 degrees, HSBC incorporated a No Deforestation, capital will increase the resilience of as is most likely, climate change is No Peat and No Exploitation (NDPE) smallholders to climate change. Small- expected to reduce soy crop yields in requirement into the bank’s Agricultural and medium-sized enterprises in the ‘first Brazil by up to 70%.4 These systemic, Commodity Policy, and has actively asked mile’ of the supply chain play a critical role self-reinforcing trends in the agriculture agri-business customers to make NDPE connecting small-scale farming to wider sector create powerful feedback loops commitments.8 markets, and supplying farmers with that undermine agricultural production. inputs, goods and services. The operationalisation of the corporate commitment to ‘No Deforestation’ made by several global agri-businesses must continue to be improved and matched by national-level companies and supported by the implementation of government policy.

According to the FAO, investing in agriculture is three times more effective at reducing poverty than investing in other industries.9 Yet less than a quarter of the financing needs of smallholder farmers in developing countries are met, leaving an annual financing gap of more than US$150 billion.10 Agricultural input and trading companies are a major source of financing to farmers, filling this gap and facilitating improvements in resource efficiency at the farm-level. A framework for sustainability 7 innovation in agri-business

Business drivers of sustainable The CFS-RAI Principles as innovation for producers an innovation framework

Creating value for customers Increasing productivity The 10 Principles for Responsible As major food brands establish their own Addressing the social aspects of agri- Investment in Agriculture and Food sustainability frameworks, they present business sustainability, such as the Systems (CFS-RAI), developed by the agri-businesses with the opportunity productivity and incomes of farmers, Committee on World Food Security, to create long-term client relationships is important to achieve greater supply provide agri-businesses with a holistic by looking after sustainability priorities chain resilience. Technology advances framework covering the whole range of in their supply chains. For example, are helping agri-businesses increase sustainability issues that companies must Mondelez, Unilever and Barry Callebaut productivity while having positive social think about. have all introduced their own schemes and development impacts. The Olam to replace Fairtrade, claiming to have Farmer Information System (OFIS), for The four-year consultation period that led more comprehensive targets.11 Cargill, a example, is leveraging the worldwide to the principles, involving governments, partner in Mondelez’ Cocoa Life scheme, penetration of mobile phones in rural the private sector, civil society and sees the scheme as strengthening the areas, giving 100,000 smallholder farmers international agencies, gives the CFS-RAI two companies’ relationship and shared access to detailed information about their a particular legitimacy. This legitimacy commitment to improving farmers’ farms, which in turn is helping farmers enables companies to understand how livelihoods and ensuring a sustainable raise productivity and incomes, with a to navigate an increasingly polarised future for cocoa.12 target to reach 500,000 farmers by 2020.14 debate on what constitutes a sustainable agricultural system, combining what is Responding to consumer needs Accessing sustainable finance important to the business with what is Agri-business clients are responding to opportunities important to their stakeholders. the growing consumer focus on health and Resource pressures are opening nutrition. Increasing the nutritious value of opportunities for sustainable agriculture In the next section, we show how the food commodities is opening new business models that can demonstrate greater CFS-RAI framework can be implemented opportunities for manufacturers, in both resilience to climate change. In 2017 by the private sector to connect critical developed and developing countries. Rabobank and UNEP announced a $1 sustainability concerns in the sector to These demands are also pulling agri- billion partnership to invest in climate innovation opportunities that will deliver businesses to systematise and improve smart agriculture.15 BNP Paribas core business value. information about production processes, committed to deploy $10 billion in capital impacts, and supply chains. In Vietnam, by 2025 for commercial projects that can mobile application TE-Food allows prove social and environmental impact in consumers to scan barcodes or QR codes developing countries.16 The IFC plans to on packages of pork, chicken or eggs to invest $117 million to leverage $1 billion learn more about the environment and in financing from the private sector and treatment of the pigs or chickens.13 donors to support sustainable agriculture investment.17

Fully realising the potential of agri-businesses to become stewards of natural capital and engines of inclusive rural development requires companies to adopt a holistic development framework. The 10 Principles for Responsible Investment in Agriculture and Food Systems (CFS-RAI) offer a framework that covers the full range of social, environmental and governance issues that are material to corporate risks and opportunities, as well as important to agri-business stakeholders. A framework for sustainability 8 innovation in agri-business

2 The Framework The 10 Principles for Responsible Investment in Agriculture and Food Systems (CFS-RAI) and the SDGs

CFS-RAI Principle 1 CFS-RAI Principle 2 CFS-RAI Principle 3 CFS-RAI Principle 4 CFS-RAI Principle 5 Contribute to food Contribute to sustain- Advance gender Engage and empower Respect tenure of land, security and nutrition able and inclusive equality and women’s youth fisheries, and forests, economic development empowerment and access to water and the eradication of poverty

SDG 1 SDG 1 SDG 4 SDG 4 SDG 1 No Poverty No Poverty Quality Education Quality Education No Poverty 1.1 Eradicate extreme 1.2 Reduce number 4.3 Equal access to 4.1 Ensure free and 1.4 Ensure access and poverty of people living in technical and equitable youth rights to land and SDG 2 poverty vocational training education resources Zero Hunger SDG 7 Affordable 4.5 Eliminate gender 4.4 Increase enterprise SDG 6 Clean Water 2.1 Ensure access to and Clean Energy disparity in training and job skills in and Sanitation nutritious food 7.1 Universal access to & education youth 6.1 Achieve universal 2.2 End malnutrition affordable, reliable SDG 5 SDG 8 access to drinking 2.3 Increase and modern energy Gender Equality Decent Work and water smallholder services 5.1 End all Economic Growth 6.2 Achieve access to productivity and SDG 8 discrimination 8.5 Achieve decent adequate sanitation incomes Decent Work and against women youth employment 2.a Investment in rural Economic Growth 5.2 End all forms of 8.6 Reduce youth infrastructure and 8.5 Achieve decent violence against unemployment extension services employment for all women 2.c Functioning of food 8.7 Eradicate modern 5.5 Ensure women’s commodity markets slavery and child equal leadership SDG 3 Good Health labour opportunities and Well-being 8.8 Promote labour 5.a Women’s ownership 3.2 End preventable rights and safety of land and deaths in new-borns SDG 9 Industry, resources and under-5s Innovation and SDG 12 Responsible Infrastructure Consumption and 9.3 Increase job Production creation and SME 12.3 Reduce food waste access to finance and post-harvest SDG 10 Reduced losses Inequalities 10.2 Promote the social, economic and political inclusion of all SDG 11 Sustainable Cities and Communities 11.a Positive urban-rural linkages A framework for sustainability 9 innovation in agri-business

CFS-RAI Principle 6 CFS-RAI Principle 7 CFS-RAI Principle 8 CFS-RAI Principle 9 CFS-RAI Principle 10 Conserve and sustain- Respect cultural Promote safe and Incorporate inclusive Assess and address ably manage natural heritage and traditional healthy agriculture and transparent impacts and promote resources, increase knowledge, and support and food systems governance structures, accountability resilience, and reduce diversity and innovation processes, and disaster risks grievance mechanisms

SDG 1 SDG 2 SDG 3 Good Health SDG 12 Responsible SDG 16 No Poverty Zero Hunger and Well-being Consumption and Peace, Justice 1.5 Build resilience 2.5 Maintain the genetic 3.9 Reduce illness from Production and Strong of poor to climate diversity of plants hazardous chemicals 12.6 Encourage company Institutions vulnerability and animals and pollution sustainability 16.10 Ensure public SDG 2 SDG 9 Industry, 3.d Early warning, reporting access to Zero Hunger Innovation and risk reduction and SDG 16 Peace, information 2.4 Implement resilient Infrastructure management of Justice and Strong SDG 17 and sustainable 9.b Support innovation national and global Institutions Partnerships agriculture practices and value added to health risks 16.3 Promote rule of for the Goals SDG 12 Responsible commodities SDG 6 Clean Water law and equal 17.18 Increase Consumption and SDG 11 and Sanitation access to justice availability of Production Sustainable Cities 6.3 Improve water 16.5 Reduce corruption data and build 12.2 Achieve sustainable and Communities quality and reduce and bribery in all local capacity management of 11.4 Strengthen and pollution forms 17.19 Measure progress natural resources protect cultural and SDG 8 16.6 Develop effective on sustainable 12.5 Reduce waste natural heritage Decent Work and and transparent development generation including SDG 15 Economic Growth institutions through recycling Life on Land 8.8 Promote a safe and 16.7 Ensure inclusive SDG 13 15.6 Fair benefit sharing secure environment and representative Climate Action from using genetic for workers decision-making 13.1 Strengthen resilience resources SDG 11 to natural disasters SDG 17 Sustainable Cities SDG 15 Partnerships and Communities Life on Land for the Goals 11.6 Urban air quality 15.1 Conserving and 17.7 Promote access and municipal waste restoring natural to environmental management ecosystems technologies SDG 12 Responsible 15.2 Sustainable Consumption and management of Production forests and halting 12.4 Sound management deforestation of chemicals and 15.3 Combating chemical waste desertification SDG 14 15.5 Halt the loss of Life Below Water biodiversity and 14.1 Prevent and degradation of significantly reduce habitats marine pollution of all kinds A framework for sustainability 10 innovation in agri-business

CFS-RAI Principle 1 Contribute to food security and nutrition

The principle’s objectives — Enhancing the fairness, transparency, Selected SDG targets relevant to efficiency, and functioning of markets, agri-business companies To contribute to food security and in particular taking into account the nutrition by: interests of smallholders, improving SDG 1 related infrastructure, and increasing No Poverty — Increasing sustainable production and the resilience of agriculture and food 1.1 Eradicate extreme poverty productivity of safe, nutritious, diverse systems. and culturally acceptable food and SDG 2 reducing food waste and loss. — Enhancing food utilisation through Zero Hunger access to clean water, sanitation, 2.1 Ensure access to nutritious food — Improving income and reducing energy, technology, childcare, 2.2 End malnutrition poverty, including through participation healthcare, and access to education, 2.3 Increase smallholder productivity in agriculture and food systems and/or including on how to prepare, provide, and incomes through improving the ability to produce and maintain safe and nutritious food. 2.a Investment in rural infrastructure food for oneself and others. and extension services 2.c Functioning of food commodity markets

SDG 3 Good Health and Well-being 3.2 End preventable deaths in new- borns and under-5s

SDG 12 Responsible Consumption and Production 12.3 Reduce food waste and post- harvest losses A framework for sustainability 11 innovation in agri-business

“At DSM, we wanted to be the initiative-taker. The idea behind Africa Improved Foods, is that DSM and other stakeholders can fund the factory’s development and eventually create a model that’s economically self-sustaining, and locally supported.”

Feike Sijbesma CEO, Royal DSM 25

Case study of business innovation The market for affordable, nutritious The consortium of companies — including foods is growing across East Africa. AIF Cargill, General Mills, Bühler, and DSM Africa Improved sells a range of commercial products — alongside other partners such as under the Nootri brand across East TechnoServe, USAID and Root Capital work Foods, Rwanda Africa, with profits used to subsidise the together with food processors supported products sold to WFP and Government of by PFS. As enterprises are strengthened Africa Improved Foods Rwanda (AIF) — Rwanda. To drive sales, AIF engages with and grow, they enhance access to markets, a joint venture between Royal DSM, the healthcare officials, regional authorities improve livelihoods and create jobs at Rwandan government, and development and consumers in Rwanda, Uganda and one end of the value chain; and provide institutions including FMO, CDC and IFC DRC, raising awareness of the benefits nutritious, affordable, safe food to — produces fortified blended food for the of fortification and organising fortnightly consumers at the other. Government of Rwanda and the World factory visits for schools, farmers and Food Programme (WFP).18 It is designed shopkeepers to demonstrate high food Corporate partnerships with NGOs to to help address malnutrition and stunting safety standards.23 With an annual tackle nutrition security also focus on in young children among the population production capacity of 45,000 tonnes, holistic development strategies. For at the base of the pyramid. The WFP has AIF’s manufacturing plant is one of the example, Cargill works with CARE committed to purchase AIF products for largest nutrition factories in East Africa, International to increase farmers’ its African food initiatives. and reached 90% operational capacity productivity, market access and within six months of production.24 livelihoods, improve nutrition security, AIF aims to contribute to the reduction community governance and education of malnutrition in Rwanda, through resources. It has invested $18 million increasing the availability of high quality, Opportunity for agri-businesses: in the partnership since 2008, and aims affordable, locally-sourced nutritious Partner for food security to reach a total of 1 million people in foods.19 Chronic malnutrition affects over agricultural communities by 2020.27 a third of children under the age of five Improving food security and nutrition in Rwanda. AIF has invested $66 million provides agri-businesses an opportunity in a state-of-the-art facility producing to work together in collective platforms Further resources micronutrient-fortified porridge flours to support the communities in which they to support infant and maternal health.20 work, and is often seen as one part of a — The Agriculture for Nutrition Global The venture also supports local economic more integrated approach to supporting Program, Global Alliance for Improved development and job creation, sourcing livelihood development. Nutrition (GAVI). from 9,000 local maize farmers.21 By 2022, AIF expects to contribute 5-10% to Partners in Food Solutions (PFS), an — Food Reform for Sustainability and Rwanda’s export sector and contribute independent nonprofit organisation, Health (FReSH), EAT Foundation and $36 million annually to the Rwandan is working to improve nutrition and WBCSD. economy through spending on materials, increase economic development across transport, water, employment, and Africa by expanding and increasing the sales.22 competitiveness of the food processing sector. It links corporate volunteers from a consortium of world-class food companies with promising entrepreneurs in nine African countries.26 A framework for sustainability 12 innovation in agri-business

CFS-RAI Principle 2 Contribute to sustainable and inclusive economic development and the eradication of poverty

The principle’s objectives — Contributing to rural development SDG 7 and the provision of public goods and Affordable and Clean Energy To contribute to sustainable and inclusive services such as research, health, 7.1 Universal access to affordable, economic development and the eradication education, capacity development, reliable and modern energy of poverty by: finance, and infrastructure. services

— Respecting the fundamental principles — Supporting policies and actions aimed SDG 8 and rights at work as defined in the at empowering and improving human Decent Work and Economic Growth ILO core conventions; and supporting resource capacity, particularly for 8.5 Achieve decent employment for all the effective implementation of other smallholders and family farmers, and 8.7 Eradicate modern slavery and international labour standards, promoting their access to resources child labour including eliminating the worst forms and inputs; and promoting greater 8.8 Promote labour rights and safety of child labour. coordination, cooperation, and partnerships to improve livelihoods. SDG 9 — Creating new jobs and fostering decent Industry, Innovation and work through improved working — Promoting sustainable patterns of Infrastructure conditions, occupational safety and consumption and production. 9.3 Increase job creation and health, adequate living wages, and SME access to finance training. Selected SDG targets relevant to SDG 10 — Improving income and generating agri-business companies Reduced Inequalities shared value, through enforceable 10.2 Promote the social, economic and and fair contracts, and by fostering SDG 1 political inclusion of all entrepreneurship and equal access No Poverty to market opportunities. 1.2 Reduce number of people living SDG 11 in poverty Sustainable Cities and Communities 11.a Positive urban-rural linkages A framework for sustainability 13 innovation in agri-business

“Of all the approaches tried to date to bridge the income divide in this world, inclusive value chains have the best potential to scale. It is indeed heartening that ITC’s e-Choupal offered an early proof of this concept, and continues to inspire several others.”

S. Sivakumar Chief Executive, ITC Agri Business Division 34

Case study of business innovation The company aims to double the number In the cocoa sector, producers and of farmers in its e-Choupal network by manufacturers including Barry Callebaut, ITC e-Choupal, 2022.32 The e-Choupal network, which Cargill, Hersheys, Mars, Mondelez, ITC estimates has 20 million rural Nestlé, and Olam have come together India customers, has become a significant with the governments of Côte d’Ivoire channel for rural sales and distribution and Ghana, which account for close to ITC has invested $2.2 million to set up an for ITC, and 160 other companies who 60% of the world’s cocoa supply, and information system connecting farming have access to the platform, including other stakeholders to seek to improve the villages and giving local farmers access Bayer, BASF, Nokia, and Tata Motors.33 economic value of the cocoa sector for to real-time market pricing information, these countries. By 2020, as part of this weather forecasts, and information on CocoaAction platform, companies aim to production techniques.28 Since 2000, ITC Opportunity for agri-businesses: support 300,000 cocoa farmers to adopt has placed 6,500 ‘e-Choupal’ internet Unlock regional development better productivity practices. terminals in 40,000 villages servicing more than 4 million farming families. Companies can strengthen their The system allows ITC to develop scale productivity conditions in the regions in Further resources in its sourcing and market relationship which they operate by working together with smallholder farmers.29 It breaks with governments, donors, civil society — Rules of the game: A brief introduction down the information asymmetry that and other companies to establish to international labour standards, has long hindered rural farmers from regional development strategies. For International Labour Organisation (ILO). participating effectively in markets, example, Yara International played an enabling them to achieve higher margins important role in catalysing a regional — Private sector development strategy. by negotiating the sale of their produce development strategy that later became Prosperity for all: making markets directly with ITC.30 ITC also uses the the Southern Agricultural Growth work, UK Department for International platform as a means to directly sell Corridor of Tanzania (SAGCOT). This Development (DFID). inputs such as seeds and fertiliser, and covers 7.5 million hectares and was services such as crop insurance to local established with the aim to promote farmers. the generation of $1.2 billion in farming revenues and 420,000 new jobs in e-Choupal has created direct access the region, largely connected with between ITC and farmer communities, smallholder development.35 strengthening quality control, feedback, and planning to improve security of The regional focus has helped the supply. ITC is able to offer higher prices company target investments in value- to farmers and save an average of 2.5% adding activities within the corridor. commission fees and transportation For example, the company invested costs that would otherwise have been $20 million in a port terminal in Dar es paid to intermediaries.31 Salaam for packaging and distributing fertiliser within and beyond the SAGCOT corridor, and an additional annual investment of $3 million supports smallholder capacity-building by providing agricultural extension services and demonstration sites.36 A framework for sustainability 14 innovation in agri-business

CFS-RAI Principle 3 Advance gender equality and women’s empowerment

The principle’s objectives Selected SDG targets relevant to agri-business companies To foster gender equality and women’s empowerment by: SDG 4 Quality Education — Ensuring that all people are treated 4.3 Equal access to technical and fairly, recognising the vital role vocational training played by women; and eliminating 4.5 Eliminate gender disparity in training all measures and practices that & education discriminate or violate rights on the basis of gender. SDG 5 Gender Equality — Advancing women’s access to equal 5.1 End all discrimination against tenure rights, markets, and to women control over productive land, natural 5.2 End all forms of violence against resources, inputs, and productive women tools. Promoting women’s access 5.5 Ensure women’s equal leadership to extension, advisory, financial, opportunities education, and training services. 5.a Women’s ownership of land and resources — Adopting innovative and proactive approaches and processes to enhance women’s meaningful participation in partnerships, decision-making, leadership roles, and benefits. A framework for sustainability 15 innovation in agri-business

“Java Mountain Coffee is proud to be Conrad Bali’s coffee purveyor and we are glad that this association highlights our shared value to contribute to measured environmental and socio-economic impacts to the most vulnerable women coffee farmers and farms in Indonesia.”

Nadine Alexandra Java Mountain Coffee 41

Case study of business innovation A partnership with Hilton hotels will see Olam recognises that improving two Java Mountain Coffee blends served smallholder livelihoods cannot be Java Mountain at various food and beverage facilities achieved without empowering women within Hilton hotels in Southeast Asia. and addressing gender equality. In Coffee, Indonesia The partnership will deliver on Hilton’s many of the communities in which Olam pledge to support the UN Women’s operates, women do not have control over Indonesia is the third largest coffee Empowerment Principles, an initiative use of income, decision-making powers, producer in the world, producing 8.8% spearheaded by the United Nations or access to land, natural resources of the world’s coffee.37 However, women Global Compact programme to drive and inputs, education, or finance. The coffee farmers are not capturing the full business action on advancing gender OLC provides a single framework economic benefits: women undertake equality. A distribution partnership with through which Olam can tackle, measure the majority of the manual work to Boncafé International, a leading gourmet and report progress on economic, produce coffee but earn less than 10% coffee manufacturer and supplier in environmental and social challenges, of the household income and own less South East Asia and the Middle East, including empowering women.44 In some than 1% of the land.38 Java Mountain will see Boncafé International roast regions, realising the active participation Coffee Cooperative, a purpose-driven and distribute Java Mountain Coffee in of women can take time. It requires business, aims to empower 1 million Asian markets including Cambodia, Hong ongoing community engagement and indigenous women coffee farmers by Kong, Malaysia, Singapore, Thailand, and cultural sensitivity, particularly in 2030 by improving their access to finance Vietnam, driving greater demand for the contexts that do not allow women to own and training, helping them achieve brand. farms or land assets, attend training, or certification, and investing in climate speak at meetings. resilient agricultural practices. Opportunity for agri-businesses: Java Mountain Coffee has developed a Empower women Further resources farm-fresh, micro-roast Mocha Java Blend coffee, the first coffee in over Empowering women is a growing — Women’s Empowerment Principles 300 years for which beans from Java concern for most agri-businesses’ for Business, UN Women & UN Global will be micro-roasted at origin within global clients. Unilever, for example, Compact. days after harvesting by local women, sees enhancing women’s livelihoods packaged fresh and distributed to global in its agricultural supply chain as one — Opportunities for Women: challenging markets for sale.39 The venture has set an of the company’s biggest sustainable harmful social norms and gender ambitious target of empowering 1 million development opportunities. It aims to stereotypes to unlock women’s rural women farmers and planting 3 empower 5 million women in its value potential, Unilever. million hybrid coffee and shade tree chains by 2020 via programmes focused seedlings by 2030. on promoting rights and safety, building skills and capabilities, and creating Java Mountain Coffee allocates 10% of economic opportunity through jobs and the revenues from its Mocha Java Blend livelihoods.42 The growing emphasis coffee to its Woman’s Empowerment food companies are placing on women’s Innovation Fund, which supports empowerment is likely to continue to the establishment of all-women translate into growing pressure on agri- cooperatives and supports them to business suppliers to do the same. achieve coffee sustainability certification from Fairtrade, RainForest Alliance Empowering women in the supply chain is and UTZ Certified.40 The fund also also a stated priority for agri-businesses helps provide climate-resilient coffee such as Olam. The Olam Livelihood seedlings through a sustainable nursery Charter (OLC) has reached over 300,000 programme in partnership with the farmers — of which over 55,000 are Indonesian Coffee and Cocoa Research women — through 44 initiatives across Institute. 11 products in 19 countries, and provided more than $160 million in financing to smallholders.43 A framework for sustainability 16 innovation in agri-business

CFS-RAI Principle 4 Engage and empower youth

The principle’s objectives Selected SDG targets relevant to agri-business companies To engage and empower youth by: SDG 4 — Advancing their access to productive Quality Education land, natural resources, inputs, 4.1 Ensure free and equitable youth productive tools, extension, advisory, education and financial services; education, 4.4 Increase enterprise and job skills in training, markets and information; and youth inclusion in decision-making. SDG 8 — Providing appropriate youth Decent Work and Economic Growth training, education, and mentorship 8.5 Achieve decent youth employment programmes to increase capacity 8.6 Reduce youth unemployment and/or access to decent work and entrepreneurship opportunities, and foster youth contribution to local development.

— Promoting development and access to innovation and new technologies, combined with traditional knowledge, to attract and enable youth to be drivers of improvement in agriculture and food systems. A framework for sustainability 17 innovation in agri-business

“The partnership with Kenya Commercial Bank will provide the youth with direct access to markets and eliminate middlemen. Farmers need access to markets and not handouts. We thus need to convert farmers to agri-preneurs because this is the only way that economic standards can be transformed.”

Vimal Shah CEO Bidco

Case study of business innovation Bidco aims to increase its market share Many agri-businesses are addressing five-fold across sub-Saharan Africa over youth jobs and skills indirectly through Bidco Africa, five years, targeting $1 billion growth in platforms in which they participate. For Kenya within that period.48 / 49 To capture example, Barry Callebaut, Cargill and Kenya greater market share, the business Olam are all partners in Mondelez’ Cocoa recognises it is vital to transform agri- Life programme, which focuses on five Bidco Africa and the Kenya Commercial business in the region from subsistence areas of transformation change in cocoa Bank Foundation (KCB Foundation) are farming to commercially-oriented, farming, including transforming youth and providing capacity building, funding, and competitive and modern agriculture with ‘making cocoa farming a more attractive market access to 10,000 young farmers in a focus on integrating rural youth into profession for young people’.52 There are Kenya. Although Kenya’s climate is well- value chains. also significant opportunities for agri- suited to soybean production, insufficient business to partner with technology firms labour at a farm level and in processing to empower young farmers. contributes to a domestic shortage: Opportunity for agri-businesses: Bidco’s seed-crushing operations run at Activate youth entrepreneurship In Africa, technology companies are 50% capacity due to a labour shortage.45 leading the way in tackling youth To support its growth strategy in Kenya, Agri-businesses have been slow to set unemployment, catalysing innovation Bidco is investing in training young public targets on youth empowerment and launching digital-skills programmes farmers to make agri-business more and job creation. Young farming for young people across the continent: attractive to youth. entrepreneurs provide a new narrative. Google aims to train 10 million people, Mavis Nduchwa, age 33, challenged while IBM aims to train 25 million.53 In Its partnership with KCB Foundation norms in Botswana by leaving a career Kenya, Safaricom’s $1 million Spark provides interest-free loans to young in hospitality and TV to set up an Venture Fund is supporting start-ups like farmers. None of the participants in the animal feed farm in her rural home FarmDrive, which aims to use data-driven programme have received loans before, in Francistown. Chabana Farms — an tech solutions to revitalise agri-business and all must complete training in order integrated farm producing vegetables and provide Africa’s youth with quality, to receive funding. Bidco buys their and horticulture alongside cattle and sustainable economic opportunities in soybean and sunflower seeds at a rate pigs — produces affordable, locally agriculture.54 that is 33% higher than market price, produced animal feed, reducing local enabling young farmers not only to pay farmers’ reliance on expensive imports back their loans but also to invest in and addressing the lack of local jobs for Further resources improving productivity.46 The programme women and youth. aims to empower 10,000 youth every year — Youth in the rural economy: Unleashing to set up small-scale agri-businesses Nduchwa is determined to make the potential of rural economies through in soybean and sunflower seed farming agriculture ‘cool’ in order to attract investments in young people, UN Decent that will employ at least five people each, more youth to the sector: to do so agri- Jobs for Youth initiative. translating to 50,000 jobs for young business must be profitable and able to people after five years.47 meet the needs of young farmers and — Youth and Agriculture: Key Challenges their communities.50 Chabana Farms can and Concrete Solutions, FAO. make up to $1.5 million in profits, with a good rainy season, and has been awarded a $2 million government contract to supply jugo beans to the local market.51 Nduchwa received funding from the Tony Elumelu Entrepreneurship Programme, which aims to support businesses that can contribute over a 10-year period to creating about a million new jobs and generating at least $10 billion in revenue across Africa. A framework for sustainability 18 innovation in agri-business

CFS-RAI Principle 5 Respect tenure of land, fisheries and forests and access to water

The principle’s objectives Selected SDG targets relevant to agri-business companies To respect for the legitimate tenure rights of communities to land, fisheries, SDG 1 forests and water, in line with: No Poverty 1.4 Ensure access and rights to land — The Voluntary Guidelines on the and resources Responsible Governance of Tenure of Land, Fisheries, and Forests in the SDG 6 Context of National Food Security, in Clean Water and Sanitation particular, but not limited to, Chapter 6.1 Achieve universal access to 12. drinking water 6.2 Achieve access to adequate — The Voluntary Guidelines for Securing sanitation Sustainable Small-Scale Fisheries in the Context of Food Security and Poverty Eradication. A framework for sustainability 19 innovation in agri-business

The land titles were issued in only three months, while it usually takes on average four years to do so across Africa.

Case study of business innovation The joint venture, of which Olam owns However, an Oxfam study of sugar 49% and the Gabonese government 51%, production in Brazil has showed the Olam International, is in 7 provinces and, as of December complexity that global brands face when 2017, over 100 cooperatives with 2,600 monitoring such commitments.62 Gabon people were actively producing. The land titles were issued in only three months, Land tenure security has been positively The Republic of Gabon has set itself the while it usually takes on average four correlated to agricultural productivity of ambitious goal of food self-sufficiency years to do so across Africa.58 smallholder farmers, who have greater and increased local employment by incentives to invest in longer-term 2020.55 As part of this plan, concessions The new landowners receive training productivity efforts.63 Agri-businesses were assigned in 2015 to foreign to grow and manage small-scale palm investing in helping smallholders secure companies for timber, palm oil and oil plantations alongside subsistence their land ownership can expect to see a rubber. Land tenure security is a critical crops such as cassava and banana, range of benefits, from social license to gap for prospective investors as the to promote food security and income operate to increased performance from majority of land is state-owned and diversification. In order to ensure that out-grower and related programmes. local communities do not generally activities in the lands selected for Besides the greater pressure from own the right to the land they cultivate. farming do not have negative impacts customers, the greater scrutiny from The country has not yet spearheaded on the environment, Olam has worked investors to land tenure risks has the reforms necessary to de-risk these with the government to devise a new, prompted the development of a series of commodities by recognising communal legally binding environmental and social agri-business guides on how to approach and customary land ownership.56 due diligence framework, adapted to the land tenure security. For example, the scale of the project, and has initiated development finance institutions CDC Olam International partnered with the land preparation in dozens of sites Group and DEG have focused on legacy Gabonese government to develop rubber across the country. The venture is also a land issues for agri-business projects.64 and palm oil plantations. US$750 million platform for market access as it provides will be the total investment by Olam smallholder farmers with regular So far much of the agenda for agri- Palm Gabon and US $220-240 million is transport and distribution links to sell businesses has been shaped by the expected total investment by Olam their produce. In its next phase the joint downstream retail brands. There is a need Rubber Gabon respectively. Unlike most venture will also focus on developing a for agricultural supply-side companies to other companies in the country facing the local agri-processing industry through engage more proactively. Collaboration prospect of weak land tenure, Olam took local enterprises. can be established with players like the a proactive stand on land governance. It Interlaken Group. This is an informal formed a public-private partnership with network which aims to drive private sector the government to support smallholder Opportunity for agri-businesses: action to secure community land rights.65 groups to formally own their land as part Contribute to land tenure security of an out-grower production model. Land conflicts have increased by 300% Further resources Facilitating the registration of land since 2003.59 Over 700 land conflicts titles meant also that farmers would be involving agricultural commodities were — Guide to Respecting Land and Forest in a better position to leverage Olam’s active in 2016 globally.60 Downstream Rights, Interlaken Group. training in good farming practices, consumer-facing brands have seen their greater access to markets and inputs. exposure to the issue grow: in 2013, — The Voluntary Guidelines on the They would also be more robust partners Oxfam’s Behind the Brands initiative Responsible Governance of Tenure of by ensuring a proper environmental and assessed the performance of the 10 Land, Fisheries, and Forests in the social due-diligence on the land and largest food companies in the world on Context of National Food Security, ongoing monitoring.57 land tenure policies, with dismal results CFS & FAO. for some brands.61 A greater pressure on agri-business suppliers has been driven by food companies establishing policies for ‘zero-tolerance’ to land-grabbing. A framework for sustainability 20 innovation in agri-business

CFS-RAI Principle 6 Conserve and sustainably manage natural resources, increase resilience and reduce disaster risks

The principle’s objectives — Increasing climate change resilience SDG 12 of agriculture and food systems, Responsible Consumption and To conserve and sustainably manage the supporting habitats, and Production natural resources, increase resilience, related livelihoods, particularly of 12.2 Achieve sustainable management and reduce disaster risks by: smallholders, through adaptation of natural resources measures; and taking measures to 12.5 Reduce waste generation including — Preventing, minimising, and remedying, reduce and/or remove greenhouse gas through recycling as appropriate, negative impacts emissions. on air, land, soil, water, forests, and SDG 13 biodiversity. — Integrating traditional and scientific Climate Action knowledge with best practices and 13.1 Strengthen resilience to natural — Supporting and conserving biodiversity technologies, for example through disasters and genetic resources, including local agro-ecological approaches and genetic resources, and contributing to sustainable intensification. SDG 15 the restoration of ecosystem functions Life on Land and services, recognising the role 15.1 Conserving and restoring natural played by indigenous peoples and local Selected SDG targets relevant to ecosystems communities. agri-business companies 15.2 Sustainable management of forests and halting deforestation — Reducing production and post-harvest SDG 1 15.3 Combating desertification waste and losses, and enhancing No Poverty 15.5 Halt the loss of biodiversity and production efficiency, sustainable 1.5 Build resilience of poor to climate degradation of habitats consumption, and the productive use of vulnerability waste and/or by-products. SDG 2 Zero Hunger 2.4 Implement resilient and sustainable agriculture practices

A framework for sustainability 21 innovation in agri-business

“Araku coffee is unique because of its complex terroir and that’s why [it’s] premium. Everybody wants a simple life but they pay for complex things. Luxury is all about complexity.”

Anand Mahindra Co-founder, Araku Originals Ltd. 72

Case study of business innovation Opportunity for agri-businesses: The Natural Capital Protocol, supported Build natural capital by WBCSD, has helped identify business Araku Originals risks currently invisible on the balance Agri-business companies are highly sheet, and develop more cost-effective Limited, India dependent on healthy soils, predictable solutions that have a material impact rainfall and weather, and functioning on production resilience. For example, In the Araku Valley in Andhra Pradesh, and diverse ecosystems. Business is Philip Morris International (PMI) applied Araku Originals Limited is improving only beginning to understand the inter- the Protocol in Colombia to inform the farmers’ livelihoods while making coffee connections between these systems company’s strategy to eliminate the use of grown with ecosystem regeneration and the need for greater management coal from the tobacco curing process by techniques a driver of global price integration of ecological and economic 2020 by adopting an internal carbon price premium. Under the company’s scheme, value. For example, a recent study by the that incentivised farmers to switch away farmers have been organised into one Center for International Forestry Research from coal.79 of the largest Fairtrade and organic found that maintaining healthy forests certified coffee cooperatives in the world. near coffee crops increases pollination Food waste and post-harvest loss is 14,000 farmers received training on rates and could help coffee farmers emerging as another critical resource topics including biomass composting, cope and adapt to the effects of climate issue for agri-business. For every $1 tree pruning and shade tree plantation to change.72 companies invest to reduce food loss transform the land into a high-carbon, bio- and waste, a reported saving of $14 is diverse landscape. Resource security and extreme weather made in operating costs.80 60% of the volatility are demanding more systemic world’s 50 largest food companies by Growing coffee with a biodynamic resource management approaches. For revenue now have a food-loss and waste approach, farmers have implemented example, on water, the Alliance for Water reduction target which naturally extends a large agroforestry programme that Stewardship (AWS) is designed to ensure to suppliers.81 In September 2017, the sustains a healthy carbon-rich ecosystem: there is a sustainable water balance in Global Agri-business Alliance announced 6,000 hectares of fruit trees have already places where companies operate.73 Olam a voluntary resolution aligned with SDG been planted with 1.3 million tons of carbon is the first agri-business to achieve AWS 12.3 calling on members to halve their offsets expected over the next 20 years.66 certification and its Aviv Coffee Plantation own food and agricultural losses by 2030, In less than a decade, the project expanded in Southern Tanzania was also the first and work with suppliers and customers to from 1,000 acres to over 20,000 acres.67 site in Africa to do so.74 On forests and the same end.82 The Food Loss and Waste biodiversity, Indonesian palm oil company Accounting and Reporting (FLW) Standard To drive higher margins, Araku Originals Golden Agri-Resources (GAR) collaborated is being used by companies to measure, refocused its distribution strategy to with The Forest Trust and Greenpeace to report and manage food loss and waste. sell Araku coffee in premium global developed the High Carbon Stock (HCS) markets, increasing the profit margins for Approach: a scientific methodology that farmers and reinvesting in the region.68 distinguishes natural forest areas for Further resources It established an e-auction system to conservation from degraded lands with sell produce direct to wholesale buyers low carbon and biodiversity values.75 — The Natural Capital Protocol: A Primer in markets including France, Japan, and The approach has been adopted by other for Business, Natural Capital Coalition. Switzerland. Farmer incomes have nearly commodity producers, notably pulp and tripled since they started selling shade- paper, and rubber, and is referenced in a — The Business Case for Reducing Food grown coffee in international markets.69 growing number of policy commitments Loss and Waste, Champions 12.3. from palm oil customers including Araku’s most expensive stock is around Unilever, Nestlé, L’Oréal, Delhaize, — Food Loss and Waste Accounting and $108 per kg. According to its founders, Kellogg’s and Procter & Gamble.76 / 77 Reporting Standard, World Resources which include Indian industrialist Anand Institute. Mahindra, the steep price can be justified Taking a more holistic landscape approach ‘by the fact that this is perhaps the first is critical for companies to be able to time in the world that coffee is being manage biodiversity, soil and water produced using techniques similar to those simultaneously. The concept of natural in wine making . . . the variants of Araku capital offers agri-businesses a way to coffee draw their flavours from the ‘terroir’ quantify and internalise ecological values or unique environment.’70 and dynamics in their operations.78 A framework for sustainability 22 innovation in agri-business

CFS-RAI Principle 7 Respect cultural heritage and traditional knowledge, and support diversity and innovation

The principle’s objectives — Promoting fair and equitable sharing Selected SDG targets relevant to of benefits arising from the utilisation agri-business companies To respect cultural heritage and of genetic resources for food and traditional knowledge, and support genetic agriculture, on mutually agreed SDG 2 diversity and innovation by: terms, while respecting the rights Zero Hunger of indigenous peoples and local 2.5 Maintain the genetic diversity of — Respecting cultural heritage sites communities under national law. plants and animals and systems, including traditional knowledge, skills, and practices; — Promoting the application and use SDG 9 recognising the role of indigenous of locally adapted and innovative Industry, Innovation and peoples and local communities; technologies and practices, agricultural Infrastructure recognising the contributions of and food sciences, research and 9.b Support innovation and value added farmers, especially smallholders, in development, as well as the transfer to commodities conserving, improving, and making of technology as mutually agreed, available genetic resources, including including for smallholders. SDG 11 seeds; respecting their rights, to Sustainable Cities and Communities save, use, exchange, and sell these 11.4 Strengthen and protect cultural and resources; and recognising the natural heritage interests of breeders. SDG 15 Life on Land 15.6 Fair benefit sharing from using genetic resources

SDG 17 Partnerships for the Goals 17.7 Promote access to environmental technologies A framework for sustainability 23 innovation in agri-business

“Natura aspires to be a positive impact company by 2050, with socio-biodiversity as a key creator of value. This means a change in the business model for Natura, but also for our suppliers that work with our sourcing communities. They need to rethink how they work and offer more efficient and creative solutions.”

Renata Puchala Head of Sustainability for Biodiversity, Amazon Program and Social Impact, Natura 88

Case study of business innovation Opportunity for agri-businesses: In Mexico, Provital Group, a cosmetic Capitalise on benefit sharing ingredients supplier, capitalised on the Natura, positive policy environment in the country Climate change calls for accelerated to become the first company in the Brazil private sector research and development industry to achieve compliance with the (R&D) investments into crop strains that access and benefit sharing requirements Natura, one of the world’s leading are better able to adapt to pests, diseases of the Nagoya Protocol for an R&D project. cosmetics and personal care companies, and drought.89 The Nagoya Protocol, a The project, run with cooperation with the has built a commercial success out supplementary agreement to the UN Mexican government, will evaluate the conserving biodiversity, building value Convention on Biological Diversity, cosmetic application of traditional Mexican chains with local indigenous communities entered into force in 2014 to regulate plants, and will guarantee a fair supply with whom they share the proceeds of access to genetic resources and the fair chain for any plants found to have value for their commercial success. The company and equitable sharing of benefits arising the cosmetics industry.92 shows that it is possible to build a from their utilisation. competitive business based on respecting traditional indigenous knowledge.83 The protocol creates compliance Further resources obligations for governments, such as In 2000, Natura launched cosmetics ensuring that genetic resources utilised — Nagoya Protocol on Access to Genetic brand EKOS, which uses raw materials within their jurisdictions have been Resources and the Fair and Equitable extracted from native Brazilian accessed in accordance with prior and Sharing of Benefits Arising from botanicals. The company formed informed consent and under mutually their Utilisation to the Convention on innovative partnerships with indigenous agreed terms with traditional knowledge Biological Diversity, UN Convention on community groups to certify and holders, expanding opportunities for Biological Diversity. source raw materials sustainably.84 access to justice and legal recourse.90 These partnerships pre-dated Brazil’s — UN Business & Biodiversity Pledge, UN legislation on benefit sharing. In the As the case of Natura shows, the upside Convention on Biological Diversity. absence of a legal framework and pre- is that the Nagoya Protocol enables existing practices, the company provided companies to development innovative — Business Reference Guide to the UN communities with training in agricultural business models and brands that make Declaration on the Rights of Indigenous techniques to enable them to add value the recognition of traditional knowledge Peoples, UN Global Compact. to raw materials. It also allocated a and benefit sharing a key attribute of percentage of net sales to benefit the their competitive position. A growing communities supplying the company number of businesses across the with agricultural commodities.85 In 2016, agriculture value chain recognise and Natura reported that close to $1 million support the principle of fair access and had been disbursed in shared benefits benefit-sharing described in the Nagoya to local communities, derived from their Protocol. access to genetic heritage or related traditional knowledge.86 Over 100 companies including BASF, Monsanto, L’Oréal and Nestlé have signed In 2010, Harvard Business Review the UN’s Business and Biodiversity identified Natura as one of the most Pledge, which has embedded the profitable companies in its sector.87 principle of access and benefit sharing The Natura model shows that business in a business platform. In the pledge, models rooted in local development business signatories commit to take and based on benefit sharing with local concrete actions to measure, value indigenous groups can be a driver for and conserve biodiversity and deliver commercial and competitive growth for solutions for its sustainable use and the a business. fair and equitable sharing of benefits from genetic resources.91 A framework for sustainability 24 innovation in agri-business

CFS-RAI Principle 8 Promote safe and healthy agriculture and food systems

The principle’s objectives — Managing and reducing risks to public SDG 6 health across agriculture and food Clean Water and Sanitation To promote safe and healthy agriculture systems, including strengthening 6.3 Improve water quality and reduce and food systems by: science-based strategies and pollution programmes for the control of food — Promoting the safety, quality, safety, with supporting infrastructure SDG 8 and nutritional value of food and and resources; and enhancing Decent Work and Economic Growth agricultural products; and supporting awareness, knowledge, and 8.8 Promote a safe and secure animal health and welfare, and communication of evidence-based environment for workers plant health, to sustainably increase information on food quality, safety, productivity, product quality, and safety. nutrition, and public health issues SDG 11 to strengthen capacity along the Sustainable Cities and Communities — Improving the management of entire agriculture and food system, 11.6 Urban air quality and municipal waste agricultural inputs and outputs, to particularly for smallholders. management enhance production efficiency and minimise potential threats to the — Enabling consumer choice by promoting SDG 12 environment and to plant, animal, and the availability of and access to food Responsible Consumption and human health, including occupational that is safe, nutritious, diverse and Production hazards. culturally acceptable. 12.4 Sound management of chemicals and chemical waste

Selected SDG targets relevant to SDG 14 agri-business companies Life Below Water 14.1 Prevent and significantly reduce SDG 3 marine pollution of all kinds Good Health and Well-being 3.9 Reduce illness from hazardous chemicals and pollution 3.d Early warning, risk reduction and management of national and global health risks A framework for sustainability 25 innovation in agri-business

“Consumers can check the product origin anytime and anywhere. The information will be automatically transferred to relevant agencies for easy inspection and control.”

Dao Ha Trung Chairman, Ho Chi Minh City High Technology Association 96

Case study of business innovation In the long-term, TE-FOOD expects The Collaborative recognises that impact whole-chain traceability will help at scale requires a systemic approach TE-FOOD, governments combat corruption and and is tackling the challenge on multiple the black market more effectively, and fronts: supporting key programmes and Vietnam increase VAT revenue without the need to partnerships in priority watersheds; increase VAT rates. building the business case for farmers to TE-FOOD, a food traceability company, in improve resource management through collaboration with the Ho Chi Minh City TE-FOOD’s strategy focuses on emerging the Soil Health Partnership; engaging government in Vietnam, has built the markets, where the growing middle policy makers to support public policy world’s largest food traceability project class is driving demand for product reform; and engaging consumers to covering pork, chicken and eggs and transparency, fuelled in part by product catalyse change.98 building trust between livestock farmers, safety concerns. Governments across processors, consumers, and authorities South-East Asia face mounting pressure Individual input companies such as Yara through an integrated farm-to-fork to increase product safety and access to International have focused on product traceability system. product information. TE-FOOD’s system stewardship and corporate standards on manages more than 400,000 transactions health, environment and safety and the The World Health Organisation (WHO) a day, reaching 30 million people across promotion of industry-wide standards.99 estimates that 420,000 people die each emerging markets.95 Progress also depends on addressing year due to contaminated food.93 Food the behaviour changes needed at the safety is a major concern for residents farm level, in how farmers and workers of Ho Chi Minh City. In 2016, the city Opportunity for agri-businesses: handle and apply inputs. For example, government and TE-FOOD piloted whole- Internalise planetary boundaries the Pesticide Action Network (PAN) chain traceability in the pig trade. More International studied the use in India of the than 6,000 companies across the supply One of the biggest challenges for the highly toxic herbicide Paraquat dichloride. chain in Southern Vietnam received global agri-business sector is to increase PAN found that while in India it has been training. In 2017, the public-private productivity while staying within planetary approved for weed control in nine crops, a partnership expanded to cover poultry boundaries to ensure human, animal large proportion of retailers and farmers and eggs: 250,000 chickens and 2 million and ecosystem health. The planetary neither read nor follow the product’s eggs are tracked each day.94 boundaries research by the Stockholm safety instructions on the label, citing Resilience Centre identified nitrogen and problems like the font being too small or The majority of Vietnamese livestock phosphorous flows into the biosphere and not understanding what is written.100 producers and processors are small, oceans as a trend reaching critical levels and often relied on paper-based records for global human security.97 It highlighted Occupational health is in itself also a key for inventory and transactions. TE- the Gulf of Mexico’s ‘dead zone’, caused challenge for the sector. According to the FOOD uses mobile-app technology to by fertilizer transported in rivers from the International Labour Organisation (ILO) track products from the farm through US Midwest, as a regional-scale example agriculture is one of the most hazardous the supply chain to the consumer. The of the impact of nitrogen and phosphorus economic sectors. It employs around one app uses QR codes to track information run-off. billion workers worldwide, or more than on a range of topics, such as transport a third of the world’s labour force, and and food safety, including weight, feed, In response to this crisis, food and accounts for approximately 70% of child antibiotic use and vaccinations. Farmers agriculture companies including Cargill, labour worldwide.101 and agri-businesses can use a web- Monsanto, Kellogg Company and Walmart based back-office system to access data, have come together with NGOs including helping them to manage operations. The Nature Conservancy and WWF to form Further resources Consumers can use QR codes to verify a an ‘end-to-end’ partnership to support product is not counterfeit, and read more farmers to improve soil health and water — Pesticide Action Network about the product’s origin, history and quality across the Midwest. The Midwest International. producers. Row Crop Collaborative is working to scale agricultural solutions that protect air and — Code of Good Practice: Safety and The government can use insight from the water quality and enhance soil health Health in Agriculture, International system to inform policy on issues from while supporting key commodity crop Labour Organisation (ILO). food safety to tax. production: Illinois, Iowa, and Nebraska produce 44% the USA’s corn, soy and wheat. A framework for sustainability 26 innovation in agri-business

CFS-RAI Principle 9 Incorporate inclusive and transparent governance structures, processes and grievance mechanisms

The principle’s objectives — Engaging with and seeking the support Selected SDG targets relevant to of those who could be directly affected agri-business companies To incorporate inclusive and transparent by investment decisions prior to governance structures, processes, and decisions being taken and responding SDG 12 grievance mechanisms for: to their contributions, in line with the Responsible Consumption and VGGT. Production — Respecting the rule and application of 12.6 Encourage company sustainability law, free of corruption; and taking steps — Effective and meaningful consultation reporting to respect human rights and legitimate with indigenous peoples, through their tenure rights, during and after conflict. representative institutions in order to SDG 16 obtain their free, prior and informed Peace, Justice and Strong — Sharing information relevant to the consent. Institutions investment in an inclusive, equitable, 16.3 Promote rule of law and equal access accessible, and transparent manner at — Promoting access to transparent to justice all stages of the investment cycle. and effective mediation, grievance, 16.5 Reduce corruption and bribery in all and dispute resolution mechanisms, forms particularly for the most vulnerable and 16.6 Develop effective and transparent marginalised. institutions 16.7 Ensure inclusive and representative decision-making A framework for sustainability 27 innovation in agri-business

“We have very good interactions and open communication; we receive complaints or questions and take actions that will benefit the community.”

Bernardo Chamorro CEO, Monte Rosa 105

Case study of business innovation Monte Rosa is a company recognised The company uses the website to report for their cost competitiveness in an on community engagement, respond to Monte Rosa, industry characterised by low margins criticism in real time, publicly disclose and market variations.103 Robust sustainability data, and share different Nicaragua grievance mechanisms have been perspectives on key issues.107 shown to reduce damages payments Monte Rosa, a subsidiary of Central and costs to the company. Issues are For Illovo, Africa’s largest sugar cane American sugar manufacturer proactively addressed through a wide producer, land tenure rights are key to Pantaleon, supplies raw sugar from its range of strategic alliances with civil the stability of its operating environment. mill and plantations to the Nicaraguan organisations and government agencies In 2015, Illovo launched Group Guidelines and global markets. Its cogeneration before they impact on the company’s on Land and Land Rights, which take a facilities supply electricity for sale to the relationship with local communities.104 zero-tolerance approach to land-grabs national power network in Nicaragua. and land rights abuses, supported by a The social and environmental issues three-year, ten-step ‘Road Map’ to address faced by the company range from the Opportunity for agri-businesses: land-related issues and embed the land aerial application of herbicides to issues Improve stakeholder relations guidelines into its operational procedures linked to the rental of land and local and policies.108 Illovo works with local expectations of work by community Transparency is key to cultivating good stakeholders to identify the key land- members during its expansion. local relations. Due to the social and related issues affecting the business, and environmental impacts sometimes prioritising initiatives to address them. Monte Rosa established a grievance involved in operations, agri-businesses management process that includes are striving to improve the mechanisms In Mozambique, Illovo is working with communities and local administration and systems they use to understand the USAID and NGO partners to support as a core part of the process. Monte needs of stakeholders and collaborate out-grower farmers around its Maragra Rosa’s written, step-by-step system to more effectively. operations to measure, map, and acquire deal with external queries, concerns, formal documentation for their land, and grievances is well understood and Grievance mechanisms are a case in regardless of the size of their property. In used locally. The company has set up point. The UN Guiding Principles on this case, Illovo’s Guidelines on Land and the Office for Environmental Protection Business and Human Rights expect Land Rights are overseen by a Land Policy and Sustainable Economic Development companies to establish effective Roundtable committee, bringing together (OPMADES) to handle the grievance operational-level grievance mechanisms key employees and external experts. procedure and ensure prompt response. for individuals and communities who may be adversely impacted. To ensure their Any community member, leader, or effectiveness, these must be legitimate, Further resources juridical representative can submit accessible, predictable, equitable, a complaint, which is dealt with by a transparent, rights-compatible, a source — CAO Grievance Mechanism Toolkit, Office committee composed of representatives of continuous learning, and based on of the Compliance Advisor Ombudsman. of the company, local community, and engagement and dialogue.106 nearby town administration. OPMADES — UN Guiding Principles on Business and then verifies incidents onsite within A growing number of companies are Human Rights, UN Human Rights Office three days and, if it is found that the appointing independent stakeholder of the High Commissioner. incident has been caused by Monte advisory committees, to oversee Rosa operations, initiates the process to sustainability policy implementation. — The Voluntary Guidelines on the document, route, track, and report on the For example, Indonesian pulp and paper Responsible Governance of Tenure of resolution. Issue resolution is carried company APRIL Group has created a Land, Fisheries, and Forests in the out in collaboration with communities. Stakeholder Advisory Committee (SAC) Context of National Food Security, The mechanism is now advocated as a which oversees the implementation of CFS & FAO. best practice by the International Finance the company’s policy on sustainable Corporation.102 forest management. It publishes progress reports on a dedicated website, Aprildialog.com. A framework for sustainability 28 innovation in agri-business

CFS-RAI Principle 10 Assess and address impacts and promote accountability

The principle’s objectives — Identifying measures to prevent Selected SDG targets relevant to and address potential negative agri-business companies To assess and address impacts and impacts, including the option of not promote accountability by: proceeding with the investment; SDG 16 and implementing appropriate Peace, Justice and Strong — Applying mechanisms that provide and effective remedial and/or Institutions for independent and transparent compensatory actions in the case of 16.10 Ensure public access to information assessments of potential impacts on negative impacts or non-compliance all relevant stakeholder groups, in with national law or contractual SDG 17 particular the most vulnerable. obligations. Partnerships for the Goals 17.18 Increase availability of data and build — Defining baseline data and indicators — Regularly assessing changes local capacity for monitoring and to measure impacts. and communicating results to 17.19 Measure progress on sustainable stakeholders. development A framework for sustainability 29 innovation in agri-business

“We are especially proud to be the first group globally, together with our 122 small farmers, to show that RSPO NEXT Certification is challenging, but doable, also for smallholders.”

Manuel Julian Dávila CEO, Daabon

Case study of business innovation Opportunity for agri-businesses: For example, the Malaysian state of Develop accountable results Sabah, which produces 12% of the global Daabon, palm supply, is working to develop a Agri-businesses making commitments jurisdictional approach to achieve 100% Colombia to social and environmental issues must RSPO certification by 2025 and thus use make sure they are backing up their sustainability as a differentiator with which Colombian agri-business Daabon Group commitment with action. Campaigning to compete in the global market.114 WWF has embraced certification schemes organisations like Greenpeace are recognises the potential for jurisdictional as a means to drive progress on refocusing on issues like palm oil and approaches to facilitate collaboration at sustainable palm production within its deforestation, engaging and collaborating scale.115 Jurisdictional approaches and the own operations and across the industry. effectively with global banks.111 New players supporting them – from NGOs like The company was a founding member of initiatives, such as Supply Change by WWF to state governments like the Sabah the Palm Oil Innovation Group (POIG) and environmental NGO Forest Trends province – offer the Global Agri-business the first company to achieve RSPO Next was created to track the progress that Alliance (GAA) an opportunity to pilot certification. companies report towards meeting practical new approaches collectively. their commitments, making it easier About 20% of global palm oil production to see which companies are behaving Supply Change has found that at least 95% is RSPO certified and certification badly and which are doing good.112 of participants in groups such as Tropical continues to play a key role in moving Independent, third-party verification of Forest Alliance 2020, and Tropical Forest palm oil production towards a more policies, commitments and targets, and Trust have adopted zero-deforestation sustainable model.109 But the RSPO the clear and honest communication pledges – as have 98% of signatories to the must live up to the criticism of failing of successes, failures and areas for New York Declaration on Forests.116 Supply to prevent forest conversion and the improvement, provide agri-businesses Change cites the GAA as one such industry inherent weaknesses of the RSPO Next with a credible way to show accountability body that could act as an accelerator for upgrade. The Palm Oil Innovation Group for sustainable development. company-level progress. has sought to break the link between palm oil certification and the destruction Promoting accountability for results of forests and peatlands by creating high ultimately requires governments to Further resources standards that are driven by independent ensure the application of stringent social third-party verification; combining and environmental laws evenly across — A closer look at jurisdictional the RSPO standard with driving more their territories. In seeking greater approaches, Tropical Forest Alliance progressive innovations in auditing, effectiveness and scale to sustainable 2020. assurance and labour rights.110 agriculture, companies, governments, investors and civil society are looking to — Landscapes: Collaborating for Committing to the POIG Charter means collaborate on ‘jurisdictional approaches’ sustainability at scale, World Wildlife Daabon has agreed to ensure its palm to de-link deforestation from agricultural Fund (WWF). oil supply chain is fully traceable from production. Jurisdictional approaches company plantations and suppliers’ are integrated landscape planning fields to their mills; and to publicly activities aligned with sub-national or disclose social, labour and environmental national political jurisdictions to facilitate performance. POIG builds on RSPO government leadership in advancing standards and addresses critical green economic development.113 Although issues. Daabon’s four palm oil estates at a very early stage, the jurisdictional in Northern Colombia, covering approach opens the potential for major almost 10,000 hectares, have been scale and efficiency gains to certification, RSPO certified since 2010. Through its verification and local development, commitment to sustainable agriculture, but it also focuses on strengthening Daabon has grown into one of the world’s the systems needed to ensure good leading suppliers of sustainable tropical governance and accountability. crops, including avocado, banana, coffee, palm oil and cocoa.

A framework for sustainability 30 innovation in agri-business

3 Recommendations The corporate implementation of CFS-RAI and SDGs

1 2 3 Adopt CFS-RAI and SDG Use CFS-RAI and SDG Draw on CFS-RAI and SDG targets as a strategic targets as a basis for impact targets to develop holistic framework to guide measures to monitor and strategies to advance corporate strategy communicate corporate smallholder development progress

The scope of sustainability issues that Promoting continual improvement is Improving the livelihoods of smallholder are directly material to the operations of key for agri-businesses to successfully farmers is one of the biggest imperatives agri-businesses is very wide. Companies integrate sustainability drivers into for the sustainable growth of the sector. must assure their stakeholders that their core business. In order to do this, A holistic local development framework their business priorities are aligned it is necessary for companies to build a is needed, addressing a range of issues with a holistic approach to sustainable framework that allows them to measure – from helping farmers to increase their agriculture, rather than isolated issues and benchmark their progress on a wide incomes and productivity, to facilitating or initiatives that companies may feel scope of issues. In selecting areas for extension services that improve compelled to work on at any given point impact measurement, companies must education, skills and access to markets. in time. balance the issues they see as aligned with corporate values, and those that The models and partnerships identified The legitimacy of the CFS-RAI as a are aligned with the expectations of their in this report show that agri-businesses consensus-driven, comprehensive stakeholders. The CFS-RAI and SDG are most effective at supporting framework for sustainable agriculture targets provide agri-business companies smallholders when they collaborate with and food systems is born out of an with the external framework to ensure other stakeholders, such as civil society, alignment of interests between their performance is aligned with all the financial institutions and governments. business, governments and civil society. aspects of this complex agenda. Companies should consider making the By covering a wide range of development CFS-RAI an integral part of their global In order to help companies to define aspects, the CFS-RAI principles provide vision, mission and strategy using it as a a comprehensive and, in the eyes agri-businesses with a useful framework broad framework to assure stakeholders of stakeholders, legitimate impact of issues and SDG targets to assess, plan that they are focusing on the right issues. framework, we have aligned CFS- and engage in smallholder development Ultimately, such a framework will help RAI with specific SDG targets that are initiatives. Using this framework will help companies make explicit how their material for agri-businesses. This agri-businesses to better engage with impact priorities and opportunities in framework helps companies that are other stakeholders, discuss common the short-, medium- and long-term already seeking to impact the SDGs to go aims and interests, and monitor and align with the universal principles and one step further in their implementation communicate their impact. aspirations of the sustainable agriculture and definition of impact objectives and agenda. metrics. A framework for sustainability 31 innovation in agri-business

4 5 Use CFS-RAI and SDG targets Use CFS-RAI and SDG targets to deepen the collaboration to define priority areas of agri-businesses with of collaboration of agri- governments and multilateral businesses on systemic development agencies issues

Responsible agri-businesses depend on Through platforms such as the Global — The empowerment of young people in governments providing a level playing Agri-business Alliance (GAA), the farming areas and the promotion of field to maintain their competitiveness. World Business Council for Sustainable youth entrepreneurship, to ensure the They must ensure that every other Development (WBCSD) and other inter-generational development of the company operating in the same corporate networks, agri-businesses are industry (Principle 4); landscape is also compelled to behave seizing opportunities to collaborate with responsibly; and government policies each other on global priorities. — The promotion of community land are the only way to achieve this market- rights and the contribution of level scale. Individual companies in the food and companies to helping smallholder agriculture sector are active across farmers gain access to the ownership By collaborating with national, many of the CFS-RAI principles and are of their land as part of inclusive regional and local governments, agri- seeking an alignment with the SDGs. On agricultural production systems businesses have been able to create some principles, such as ‘contributing (Principle 5); regional corridors that: facilitate better to food security and nutrition’ (Principle infrastructure investments; agree 1), companies are actively developing — The promotion of genetic diversity national competitiveness policies that initiatives. Here a stronger emphasis and the implementation of benefit- encourage better corporate investments on, and common approach to measuring sharing with local communities and in local processing; and, recently, begin progress is needed. indigenous groups from the use of to work on jurisdiction-wide approaches traditional genetic knowledge in to promote responsible commodity However, we identify at least five CFS- agriculture (Principle 7); production on a larger scale. RAI Principles where the pre-competitive collaboration of agri-businesses is — The establishment of science-based The collaboration of agri-businesses with lagging behind, and where companies targets for the safe and healthy use governments holds the most potential working together through innovative of nutrients in agriculture grounded to facilitate sustainable production at partnerships could have a significant in pilot regions and implementation scale. The CFS-RAI principles and SDG impact and scale on issues that matter to roadmaps that can be actively targets provide agri-businesses and their bottom line. monitored (Principle 8); and governments with a common language to engage and collaborate on common Emerging areas for corporate — The implementation of jurisdictional objectives. collaboration are: approaches to embed sustainability into landscape level planning with regional governments, facilitating collaboration of companies that are operating in the same region (Principle 10). A framework for sustainability 32 innovation in agri-business

Acknowledgements

Partners Interviews Photography

Earth Security Group gratefully Archie Beeching Cover acknowledges the support and UN-PRI RachenArt / Shutterstock.com partnership of the Swiss Agency for Carin Smaller Page 10 Development and Cooperation for IISD Dietmar Temps / Shutterstock.com this project. Chris Brett Page 12 We also acknowledge the collaboration World Bank Group pjhpix / Shutterstock.com with the World Business Council for Chris Brown Page 14 Sustainable Development (WBCSD) Olam International Sarine Arslanian / Shutterstock.com and the Global Agri-business Alliance (GAA). Duncan Pollard Page 16 Nestlé Africa Rising / Shutterstock.com Fokko Wientjes Page 18 Royal DSM Mamziolzi / Shutterstock.com Gemma James Page 20 UN-PRI Filipe Frazao / Shutterstock.com Glyn Davies Page 22 WWF Malaysia Filipe Frazao / Shutterstock.com Grahame Dixie Page 24 Grow Asia tum3123 / Shutterstock.com Giulia Di Tommaso Page 26 FAO igorstevanovic / Shutterstock.com Huub Savelkouls Page 28 Philip Morris International Jaggat Rashidi / Shutterstock.com Kavickumar Muruganathan Halcyon Agri Corporation Limited Kavita Prakash-Mani WWF Matthew Reddy WBCSD Natalia Federighi Yara International Olaf Brugman Rabobank Paul Chandler UN-PRI Robynne Anderson Emerging Ag Inc Ruth Thomas Global Agri-business Alliance A framework for sustainability 33 innovation in agri-business

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