The Roles and Toward Limitations Sustainability of Certification FINAL REPORT June 2012 Prepared by the Steering Committee of the State-of-Knowledge Assessment of Standards and Certification Toward Steering Committee Mike Barry Sustainability Head of Sustainable Business, Marks & Spencer Ben Cashore The Roles and Professor, Environmental Governance and Political Science; Limitations Director, Governance, Environment and Markets (GEM) Initiative; and of Certification Director, Program on Forest Policy and Governance; Yale University Jason Clay Senior Vice President, Market Transformation, World Wildlife Fund Michael Fernandez Director of Public Policy and Global Partnerships, Mars, Incorporated Louis Lebel Director, Unit for Social and Environmental Research, Chiang Mai University Tom Lyon Director, Erb Institute for Global Sustainable Enterprise, University of Michigan Patrick Mallet (Steering Committee chair) Director of Credibility, ISEAL Alliance Kira Matus Lecturer in Public Policy and Management, London School of Economics and Political Science Peter Melchett Policy Director, Soil Association Michael Vandenbergh Professor of Law, Tarkington Chair in Teaching Excellence; Director, Climate Change Research Network, Vanderbilt University Jan Kees Vis Global Director, Sustainable Sourcing Development, Unilever Tensie Whelan President, Rainforest Alliance RESOLVE Staff Abby Dilley Vice President of Program Development Jennifer Peyser Senior Mediator Taylor Kennedy Senior Program Associate For more information, please visit www.resolv.org/certificationassessment or contact RESOLVE, the Secretariat organization, at 202.944.2300 or [email protected]. Citation information: Steering Committee of the State-of-Knowledge Assessment of Standards and Certification. (2012).Toward sustainability: The roles and limitations of certification. Washington, DC: RESOLVE, Inc. Table of Contents Preface . i Acknowledgements . iii Introduction . 1 Chapter 1: Setting the Context . 6 Chapter 2: Why and How Actors Engage in Standards and Certifi cation . 18 Section A: The Roles and Drivers of NGOs and Civil Society . 19 Section B: The Roles and Drivers of Government . 29 Section C: The Roles and Drivers of Business . 40 Chapter 3: The Impacts of Standards and Certifi cation on Sustainability . 57 Chapter 4: Pathways to Impact: Synergies with Other Approaches . 73 Chapter 5: Trends . 90 Chapter 6: Recommendations . 100 TOWARD SUSTAINABILITY: THE ROLES AND LIMITATIONS OF CERTIFICATION Preface In 2008, the David and Lucile Packard Foundation of certification systems and ecolabels and the and the Walton Family Foundation were both apparent lack of any existing systematic review of seeking to understand the impacts and efficacy of the on-the-ground impacts of these systems— their support of the Marine Stewardship Council that important questions regarding standards (MSC)—which certifies wild-caught fisheries— and certification could benefit from collabora- and related nongovernmental initiatives. Both tive study. In particular, with the rising uptake of foundations had made substantial investments certification, we believed it essential to provide in the MSC in an effort to move seafood mar- producers, supply-chain actors, and the environ- kets toward greater sustainability. Although it mental community with a solid assessment of was clear that MSC-certified seafood was gaining what is known and not known about this means market share, the impact of that shift on marine of moving toward sustainable use. ecosystems and fishing communities remained We thus joined forces in late 2008 and early 2009 anecdotal. around a common interest in an independent, At the same time, Mars, Incorporated—one of robust assessment of the state of knowledge the world’s largest food companies—was look- regarding voluntary standards and certification ing for ways to encourage environmentally and systems that promote product sustainability. socially sustainable production practices across Our organizations provided grant support for its diverse, agriculture-based supply chain. In RESOLVE, a respected nonprofit mediation and April 2009, the company also announced its com- facilitation organization, to serve as Secretariat mitment to purchase 100 percent of its cocoa for the assessment. We worked with RESOLVE to from sustainable sources by 2020. They believed recruit a balanced Steering Committee composed that certification—a means of providing assur- of representatives from business, civil society, ance that the cocoa they purchased complies with and academia. The Steering Committee com- agreed-upon sustainability criteria—would be a missioned analyses of the literature by academic critical tool for helping to achieve that goal and researchers, in addition to drawing on their own ultimately to improve the lives of cocoa farmers. knowledge and deep experience with standards and certification. As representatives of these organizations, we began to talk with each other and realize that We asked the Steering Committee to design and we shared the belief that certification can and direct the Assessment. The findings, conclusions, does play an important role in transforming and recommendations of the resulting study are markets. We also agreed—given the proliferation those of the Committee. Committee members TOWARD SUstAINABILITY: THE ROLES AND LIMITATIONS OF CERTIFICATION i PREFACE ii served without pay, and they participated as ▪ What factors do businesses, governments, individuals, rather than as representatives of NGOs, foundations, and consumers take into their organizations. As we observed the discus- account when using or deciding whether to sions and read drafts, it was clear to us that the use or support certification? Assessment was indeed the work of persons with ▪ What is known about the environmental, strong views and deep expertise, who listened social, and economic impacts of voluntary to one another and reached vigorously debated, standards and certification systems? well-founded conclusions. We thank the members of the Steering Committee for their generosity of ▪ How do other forces—such as government time and intellect. regulation—interact with certification systems, and how do those interactions affect outcomes? We believe this final Assessment report is a significant contribution to a field that is already Our intent in publishing this Assessment report making tangible contributions and could bring is for businesses, governments, foundations, and about significant progress toward a sustainable NGOs to make use of its findings and recommen- economy. The report provides usable knowledge dations in their decision making and investments. that can inform firms, governments, and civil soci- We also hope the Assessment spurs research that ety in their continuing search for more sustainable will further expand learning, leading to better use practices. In particular, the report helps to answer of certification and other tools to induce more questions such as the following: sustainable production and consumption. Signed, Scott Burns Michael Fernandez Kai N. Lee Walton Family Foundation Mars, Incorporated David and Lucile Packard Foundation TOWARD SUstAINABILITY: THE ROLES AND LIMITATIONS OF CERTIFICATION Acknowledgements The Steering Committee wishes to thank the many individuals who contributed to this report. We especially wish to thank the funders—Kai The Guardian), Tim Bartley (Indiana University), Lee of the David and Lucile Packard Foundation; Tim Benton (University of Leeds), Claude Boyd Scott Burns and Sheree Speakman of the Walton (Auburn University), William Crosse (Rainforest Family Foundation; and Michael Fernandez of Alliance), Matt Elliott (California Environmental Mars, Incorporated—for making this Assessment Associates), Julia Jawtusch (FiBL), Aaron McNevin possible, and for their ongoing support, encour- (Mansfield University), Joshua Miller (Wright agement, and wisdom. Similarly, without the State University), Valerie Nelson (University immense commitment of Abby Dilley, Jennifer of Greenwich), Deanna Newsom (Rainforest Peyser, and Taylor Kennedy (RESOLVE) in facilitat- Alliance), Urs Niggli (FiBL), Bogdan Prokopovych ing this process and keeping us on track through (University of Rhode Island), Tracey Roberts our deliberations, we would not have been able to (University of Louisville), and Anne Tallontire deliver this report. (University of Leeds). We also thank David Steele and Jeremy Mullem of Duke University for their Ruth Norris (Resources Legacy Fund) commit- assistance in reproducing Tracey Roberts’ article, ted many hours of writing and many nuggets of which was published in the Duke Environmental wisdom in preparation of the Assessment, and Lisa Law and Policy Forum. Monzon (David and Lucile Packard Foundation) offered particular insight on the evaluation of Elizabeth Kennedy (Rainforest Alliance), in addi- certification systems. We wish to thank them both tion to contributing original research, also spent for lending their time and expertise. many hours with the Steering Committee dis- cussing the challenges of and research priorities Many other colleagues provided logistical support for evaluating methodologies and measuring and assistance, and we thank Emily Anderson and impacts. We thank her and her team for their AJ Becker (Mars), Allegra Brelsford (World Wildlife insights and continuous support. Fund), Ria de Groot (Unilever), Leanne Rivett (Marks & Spencer), Kristen Vissers (Rainforest For sharing their time, experience, and candid Alliance),