Production Landscape Programme Briefing Note 3 Siak Pelalawan Landscape Programme How Companies Collaborate and Engage Prepared by Terra Komunika for Proforest Case Study About Proforest and the Production Landscape Programme Proforest is an independent mission-driven organisation that specialises in practical approaches to sustainability in the production and sourcing of agricultural and forest commodities. We support companies to work both within and beyond their own supply chains, to deliver positive environmental and social outcomes in the places where commodities are produced. We foster collaboration between companies and other stakeholders, including peer companies, governments and civil society. This builds the foundation for individual companies to engage with sustainability issues across landscapes and sectors beyond their own supply chains. The Production Landscape Programme (PLP) was established in July 2018 with support from UK Aid under the Forest Governance, Markets and Climate Programme. The programme aims to support the private sector to align their actions on deforestation and other sustainability issues with national and sub- national policies and initiatives, including those led by civil society. © Proforest 2020 Reproduction of the text for educational or non-commercial use is authorised without prior permission from Proforest, provided that proper citation is made, and that material is used accurately and not in a misleading context. Cover photo: Clarity on both governance and the strategic contribution of corporate actions towards local priorities will pave the way for mutual understanding and strong buy-in from the respective stakeholders. Credit - Proforest Siak Pelalawan Landscape Programme How Companies Collaborate and Engage Executive Summary The Jurisdictional Approach (JA) is distinct in its common goal in general attractive and efficient. The focus on administrative areas and the importance presence of a neutral convener is seen as essential of leadership from local government, working to build trust within the coalitions as well as bridge collaboratively with other key stakeholder groups. trust with other stakeholder groups to allow real Such local government engagement is appealing for engagement and collaboration to take place. While the private sector, as it holds the potential to address SPLP activities are funded and implemented by its systemic issues that affect the implementation of members, the mainstreaming of local government’s their corporate sustainability commitments. This case commitment to sustainable land use into policies study looks into private sector engagement in the is also highlighted as key to ensuring jurisdiction- Siak Pelalawan Landscape Programme (SPLP), which wide impact related to sustainable palm production. currently comprises eight palm oil producers, traders, Companies interested in jurisdictional initiatives should and downstream buyers, facilitated by Proforest be ready to commit for an extended period, as building and Daemeter Consulting, in the Siak and Pelalawan coalitions takes time. Mainstreaming sustainability districts in Riau province, Indonesia. narratives and achieving real multi-stakeholder collaboration as the way forward for development in Several key lessons for future private sector Indonesia also take considerable time. engagement in jurisdictional initiatives were identified. First, companies find collaboration on achieving a The intervention design phase involved extensive consultations and fact finding, to validate the problem statements. An extension worker clarifies the village boundaries to head of villages. Credit - Proforest 1 Case Study 1 Jurisdictional Approach at a Glance Only six years ago, the term “jurisdictional approach” JA differs from the landscape approach particularly (JA) was new, unfamiliar, and contested among civil in the first’s specific coverage of whole political society organisations (CSOs) and donor organisations boundaries. Administrative areas in which proponents working to reduce deforestation and promote have trialled jurisdictional initiatives include provinces sustainable land use in Indonesia (Seymour et al., (such as in East Kalimantan and West Papua provinces in review). Interest in landscape and jurisdictional in Indonesia or Sabah state in Malaysia), districts (Musi approaches increased as stakeholders realised after Banyuasin, Sintang, Siak, Aceh Tamiang, and many early efforts to implement corporate commitments to more across Indonesia), and sub-districts (for example, deforestation-free supply chains that these initiatives Lalan Sub-District in Musi Banyuasin). JA initiatives should be complemented by public policies that are could even cover a whole country, as in the example aligned (Taylor and Streck, 2018). of Ecuador, which is one of the pilots for jurisdictional certification under the Roundtable on Sustainable Both landscape and jurisdictional approaches look Palm Oil (RSPO). at implementing sustainability beyond individual supply chains and focus on performance throughout Sustainability commitment from the local government, a pre-determined area (Proforest, 2016). Other similar therefore, is key to JA success. Local government has components include the participation of several key the mandate to direct development and play the stakeholder groups to achieve one or more shared role to actively engage different stakeholder groups goals, for which they align activities and inputs. A type to coordinate, plan, and align programmes. As the of accountability and governance mechanism should commitment covers whole political areas, JA is by be in place to monitor these efforts and their impacts definition cross-sectoral and cross-commodities, on the area. although certain local priorities (e.g. to prevent peat Existing initiatives by either local government, companies and CSOs were identified through interviews and desk review. Key features such as enabling conditions and challenges have become the most valuable information to refer to. Credit - Proforest 2 Siak Pelalawan Landscape Programme How Companies Collaborate and Engage fires), or interest in a single commodity, may serve as Dagang Hijau and signed by the government of Aceh an entry point to the jurisdiction. Tamiang District and key stakeholders at the end of 2019 is one of the key reasons for this interest. With leadership of local government in the mix, companies see the potential of JA to address systemic This document reports findings from a case study on challenges (e.g. land legality and forest fires), to SPLP to gather lessons on companies’ engagement allow better implementation of their corporate in JA, viewed as a policy tool utilised to engage commitments to responsible sourcing and production. local government and scale up sustainability across JA is also seen as having the ability to scale up social a jurisdiction. The lessons from the SPLP, as well as and environmental impacts beyond individual supply initial learning from other landscape and jurisdictional chains. initiatives around the world, resulted in a practical guide developed by Proforest to assist supply chain Several companies have engaged in jurisdictional companies to engage with landscape initiatives. The initiatives in Indonesia. Facilitated by Proforest and ten elements, presented in the guide, aim to help Daemeter Consulting under a partnership called companies decide where and how they can engage CORE, a Coalition of seven palm oil producers and with these initiatives. These elements are presented downstream buyers, namely Cargill, Danone, Golden briefly in the box presented on the next page, while Agri-Resources (GAR), Musim Mas, Neste, PepsiCo, the complete set of guidelines can be found in the and Unilever, formed the Siak Pelalawan Landscape references at the end of this report. Programme (SPLP) in the two districts in Riau province in mid 2018. In February 2020, an eighth company, This case study focused on the companies’ L'Oréal, also joined the Coalition of SPLP. engagement within SPLP as well as externally with other stakeholders in Siak and Pelalawan from the Other initiatives that include various levels of private preparation period through early 2020, when the sector participation are also developing in Indonesia. coalition started its implementation in the two districts For example, The Coalition for Sustainable Livelihoods based on the outcomes of the design phase. Interviews (CSL), launched in September 2018 and focusing in with partners in SPLP as well as external stakeholders North Sumatra and Aceh provinces, includes Danone, were held in March and early April 2020. This brief Mars Wrigley, Mondelēz International, PepsiCo, and study was conducted under Proforest’s Production Unilever. In Aceh Tamiang District, Unilever, Musim Landscape Programme, funded by UK Aid through the Mas and PepsiCo are also exploring investment Department for International Development’s Forest opportunities. The Production, Protection, and Governance, Markets and Climate (FGMC) Programme. Inclusion Compact, promoted by Yayasan Inisiatif 3 Case Study Box 1 Engaging with landscape initiatives: A practical guide for supply chain companies Part 1 Preparing to engage in a production landscape 1. Understand the supply base Through supply chain mapping, understand the places where the commodities are produced Understand the risks that production doesn’t meet responsible sourcing commitments 2. Identify priority landscapes Identify priority landscapes for engagement, considering