session #2 unece policy recommendation, guidelines and ......session #2 unece policy recommendation,...

Session #2UNECE Policy Recommendation, Guidelines and Call to Action

(15:10–16:00)

Enhancing Transparency and Traceability for Sustainable Value Chains in Garment and Footwear

3rd Policy Dialogue: Accelerating Action for Sustainable and Circular Value Chains - 23&24 Nov. 2020


Where do we stand with the Policy Recommendation ?

Maria Teresa PisaniProject LeadEconomic Cooperation and Trade Division, UNECE

- Business Process/Sustainability Risks Analysis - Business Requirements Specifications- Reference Data Model

1. POLICY RECOMMENDATION

4. BLOCKCHAIN PILOTS & CAPACITY

BUILDING

2. TEXTILE TRACEABILITY

STANDARD

3. LEATHER TRACEABILITY

STANDARD

1. POLICY REC GUIDELINES CALL TO ACTION

STAKEHOLDERS MAPPING

STAKEHOLDERS QUESTIONNAIRE

DESK RESEARCHPOLICY/LEGAL COMPENDIUM

POLICY MEASURES

TT SYSTEM COMPONENTS CALL TO ACTION

EXPERTS CONSULTATION + PUBLIC REVIEW

Traceability & Transparency Framework

- Pilot concept - Partners engagement- User stories collection &

claims identification- Solution design

DEVELOPMENT STEPS

#Policy Recommendation Enhancing Transparency and Traceability of Sustainable Value Chains in Garment and Footwear

Desk and Field Research

Jan Mar

2020 Jan Mar July Nov 2021 Jan Mar Apr

2020 2021

Finalization Publication Translation

Jan Mar

Adoption UN/CEFACT Plenary

Apr

Launch UNECE Session

Apr

Today

Drafting of Policy Rec

Mar MayPolicy Rec

Guidelines

Call to Action

Compendium

Drafting of Guidelines and Call to Action

May Sept

UN/CEFACT Open Development

Process

POLICY REC & GUIDELINES TIMELINE

Public Review

Oct Dec

UN/CEFACT Public Review launched20 Oct – 20 Dec 2020Policy Recommendation, Part IGuidelines, Part II

https://uncefact.unece.org/display/uncefactpublicreview

LAUNCH OF THE PUBLIC REVIEW


20 Oct – 20 Dec 2020 https://uncefact.unece.org/display/uncefactpublicreview

TEMPLATE TO PROVIDE COMMENTS


7

A. Introduction• Transparency and traceability: key enabelers

for compliance with policy/regulators/ corporate objectives for sustainability and circularity and for solid claims

F. Recommandation

• 5 cluster areas and 9 recommendations: norms and standards and reference to minimum data set; Incentives; R&D scaling up innovation; Awareness and education of consumers; Multi-stakeholders collaborative initiatives

E. Challenges• Organizational & technological complexities• Data: privacy and security, reliability and authenticity

• Investments in advanced technologies: e.g. blockchain, RFID

Link to Call to Action – Mechanism to monitor impact and facilitate sharing of experiences and good practices

POLICY RECOMMENDATIONS - PART I (DRAFT 20 OCT)

D. Purpose & Benefits• A level playing field: incentive for good actors• Globally recognized approach: for data sharing• Better access to remedies: for workers and consumers• Fight to counterfeiting and illegal trade

B. Scope• Whole Value Chain: from raw material

production, through manufacturing, to consumption and post-consumption

• Action areas: for Recommendations

C. Target audience• Public-sector policy makers• And: Business and industry associations;

Consumers and consumer associations; IGO; Investors/shareholders; Local authorities; NGOs; Scientific and technological community; Workers and trade unions

Multi-stakeholders collaborative initiativesi ) Support collaborative initiatives to achieve industry-wide change and create shared value for all industry actors: (i) A global, open-sourceknowledge platform; (ii) Multi-stakeholder policy dialogues; (iii) Pilot projects with innovative approaches and advanced technologies

8

Norms & Standardsa) Harmonized policies and regulations for policy coherenceb) Minimum levels of traceability, from raw materials sourcing, for products, processes and facilitiesc) Companies’ efforts to embrace higher transparency, e.g. names/addresses of suppliers’ factories, and sharing of info on sustainability performancec) reduced implementation burden through use of international standards and use of existing data

SECTION F -RECOMMENDATION

Incentivesd) Economic and fiscal e) Non financial: sustainable procurement, fast customs clearance, specialized training, IT investment and technology transfer, non-financial reporting requirements, public visibility, peer learning

R&D and scaling up innovationg) Support R&D and scale-up innovation for: (i) Tracing and verifying authenticity and provenance; (ii) Advancing sustainability/circularity ofproduction and consumption processes; (iii) Increasing the lifespan of products; (iv) creating more sustainable material (iv) Recycling ofgarments and textiles(Awareness and consumers education(h) Provide education in order to: (i) Allow consumers to make informed choices (ii) Create an awareness of the shared responsibility of allstakeholders, and (iii) Increase the demand for materials, products and processes that are more responsible and sustainable.

Ec & Fiscal incentives

Green & Responsible Procurement

Fast-track/Fast custom clearance

Specialized managerial & workforce training

IT investments and technology transfer

Non-financial reporting requirements

Public visibility (B2B and B2C)

Peer learning

Availability of User-friendly interface tools

Development and promotion of open-source technologies ENABLERS

9

REC E &F INCENTIVES – SAMPLE MEASURES

Incentives that could be put in place to support the implementation of a traceability system

(e) Provide economic and fiscal incentives (positive and negative):for establishing and implementing value-chain traceability andtransparency systems

(f) Provide non-financial incentives, including measures tofacilitate access to markets

…especially in support of SMEs, small farmers and producers, andother vulnerable groups

10

IMPLEMENTERS – SAMPLE MEASURES#Policy Recommendation Enhancing Transparency and Traceability of Sustainable Value Chains in Garment and Footwear

(a) Regulation for transparency and traceability(b) Adoption/promotion of international standards for data

collection & exchange

(f) Financial and non-financial incentives, e.g. sustainableprocurement, fast customs clearance

(i) Public communication and information campaigns

POLICY MAKERS

BUSINESS AND INDUSTRY ASSOCIATIONS

(b) Action plans with targets for transparency and traceability

(g) Product passports

(g) Investment in advanced technologies (blockchain systems/DNAmarkers)

CIVIL SOCIETY

(h) Consumers education

(i) Collaborative initiatives to achieve industry-wide change


Where do we stand with the implementation Guidelines?

Virginia Cram-MartosCEO Triangularity, UN/CEFACT project expert

12

A. Introduction• Purpose: Practical guidance on the

development of traceability systems To Support Claims and Regulatory Compliance For Sustainable and Circular Garment and Footwear Value Chains

• Target audience: High Level Government and Private Sector Managers with implementation responsibility

F. Creating inclusiveness in traceability systems

E. Supporting role of advanced technologies• Opportunities and challenges• Type of supporting technologies: e.g. AI, IOT,

Blockchain, Internet Cloud Services, Advanced product labelling (QR, RFID, DNA markers, NFC labels)

• Criteria for their selection and impact

• The digital divide• Gender considerations• Small- and medium-sized enterprises• Integrating Developing Countries

Annex– Action Plan: A step-by-step approach to frame and implement a traceability system

GUIDELINES - PART II

D. Cost allocation & incentive systems• Costs related to traceability and transparency: e.g.

costs for development of the system; data collection and exchange, certification, inspections, audits, etc.

• Type of incentives: financial and non-financial, public vs private

• Criteria of cost structure for value-chain partners

B. Traceability principles• 9 Principles: Awareness, Knowledge, Risk-

based Analysis, Commitment, Engagement, Structured implementation, Norms & Standards, Appropriate technology, Inclusiveness

C. Key traceability systems concepts• Claims• Traceable Assets• Logistics Units• Unique Identifiers (IDs)• Entry & Exit Points• Traceability models• Verification criteria• Verification processes

s

Illustrations by Econceptive, Lakshisha and Wolf Böse from the Noun Project

Which claims & principles willsupport ourcorporateobjectives?

How can weimplement aninclusive system?

How can wecollect/trace data across a value chain?

How should costsand incentives be distributed?

How do we define a traceable asset?

How can weverify data across a value chain?

Which standards& new technologiescould we use?

TO HELP YOU ANSWER QUESTIONS…..

From raw material production,

…..through manufacturing and branding,

to consumption and post-consumption

Input (Chemical/Pesticides) WaterEnergyCO2SoilAir Thermic Noise BiodiversityDeforestationHabitatWaste/End-of-life Animal Welfare

Child labourForced LabourLand UseWork & Social protectionTrade Unions & Collective bargainingSexual harassmentGender inequalityDiscriminationHomeworkers

PermitsContracts Compliance to legislation/regulations

Management /Administration Quality Inspections /Certificates

Environment Social Health

Characteristic

RequirementValue

ObservationActual Value

Evaluation Criteria

Degree of fulfilment

Data component

Sustainability Data

Health Safety

Product FacilityProcess

GUIDELINES - PART II

Traceability Information CollectionWhat we need to trace and assess

WhereWhenWhyWhatWho

For Each Activity/Event

15

GUIDELINES - PART II#Policy Recommendation Enhancing Transparency and Traceability of Sustainable Value Chains in Garment and Footwear

TT Principles

9 Principles

Key TT system concept

8 Components

Processes, procedures & technology

TT Action PlanStep by step implementationapproach Governance structure

TT Framework• Provides the basis for increased collaboration across value chains• Supports your journey to a more sustainable future


Francesca Romana RinaldiCoordinator of SDA Bocconi Sustainability Lab Community for Circular FashionUN/CEFACT project expert

Where do we stand with the Call to Action?

Civil society collaboration initiative

Foundation/ Association initiative

17

establishing a mechanism for supporting

the implementation of themeasures proposed in theRecommendation

to take action for traceability and

transparency with the goal of

accelerating sustainabilityand circularity of value chains

Public initiative

Private initiative

The Call to Action invites all actors inthe garment and footwear industry

Public-private initiative

THE CALL TO ACTION

POSSIBLE OUTCOMES

18

Enhanced visibility of compliance with sustainability and circularity requirements

Enhanced traceability of the social/environmental/ethical attributes of product(s)/materials, processes and organizations along the value chain

Measurable impact on sustainability in value chains over time

Increased environmental and socially responsible consumption and production patterns

Special attention to SMEs, small producers, farmers, and other groups including, women, young workers, home-based, informal/invisible and migrant workers

19

“As there is no universally applied methodology for the

sustainability impact valuation and measurement,

some reference scheme could be added”

“It is important that companies carry out a due

diligence exercise on human rights to identify which specific vulnerable groups they should

consider”

HIGHLIGHTS FROM THE EXPERTS CONSULTATION

How can we make the Call to Action effective?Monitoring Implementation and Assessing Impact

1. Refer to relevant goal(s) and specific target(s) of the UN 2030

Agenda

4. Asking about strategic/public awareness activities

3. Asking about good practices

2. Establishing KPIs for the Actions (specific for each stakeholder)

20

5. Establishing a Platform for sharingexperiences and lessons learned

8. Inviting Member States to formally disseminate information about the Call

to Action

7. Preparing a Report to be presented to Member States and the General

Public

6. Reaching out to parties in the Call to Action to receive updates on

progress

MONITORING, IMPLEMENTATION AND ASSESSING IMPACTS

2121

Open for comments to UNECE secretariat by 20/12/2020

See item 11 - ECE/TRADE/C/CEFACT/2020/6http://www.unece.org/index.php?id=55141 (EN-FR-RU)

ON GOING UPCOMING

Launch of the Call to Action 26/11/2020 (UN/CEFACT Plenary endorsement)

Send commitment(s) to action(s) to UNECE secretariat

LAUNCH OF THE CALL TO ACTION

http://www.unece.org/index.php?id=55141

EXAMPLE: PRIVATE INITIATIVE (REAL CASE)

Who: SDA Bocconi Sutainability Lab Communityfor Circular Fashion (5 Members: 2 Ingredients, 2brands, 1 Platform/ERP - November 2020 update)

Where: Italy

What: Launching a Circular Fashion Manifestohighlighting the importance of Transparency andTraceability as enablers of Sustainability andCircularity

How: Through the identification of KPIs andrequirements to scale-up circular pilot projects ingarment value chains

Who: Blockchain for Made in Bangladesh

Where: Bangladesh

What: Traceability and transparency to validatesustainability claims and promote fair practices ingarment manufacturing

How: Through the conception andimplementation of a Blockchain pilot project

EXAMPLE: PUBLIC INITIATIVE (SIMULATED)


Claudia di BernardinoLawyerUN/CEFACT project legal expert

Where do we stand with the Mapping of supporting policies, regulations and guidelines?

Tool

For monitoring the changing policy and regulatory framework and checking business compliance with regulations and policies

Asset

For connecting different stakeholders and fostering the implementation of sustainable development measures

What isthe Mapping Document

Objectivesfrom the Policy Recommendation to its application

P O L I C Y M A K E RS

Fill the gaps through new Legislations and Guidelines

B U S I N ES S A N D I N D U S T RY

A S S O C I AT I O N S

Monitoring & AssessmentCompliance & Risks

CO N S U M E RS , WO R K E RS a n d

N G O sRights & Protection

S C I E N T I F I C A N D T EC H N O LO GI C A L

CO M M U N I T Y

State of the Art Research & Development

Policy Recommendation Stakeholders

Identification of National, European or International Frameworks on Transparency and Traceability

Industries

Geographical Areas

Average

24

Cross-industry (85)Garment and Footwear (12)

Animal Welfare (12)Agri-Food (14)

Minerals (3)Cosmetics (2)

Timber (3)

430 million employees working in textile production

World Bank (2017) Total Labor Force

Europe (75)America (16)Oceania (3)

Asia (8)Africa (20)Global (15)

+ 100 Policies, Regulations and Guidelines

Mapped

http://data.worldbank.org/indicator/SL.TLF.TOTL.IN

Due Diligence Circularity Sustainability claims Consumers’ rights and protection Human rights Environment Animal Welfare Labelling Non-financial Reporting

Key Topics

Advanced Monitoring of Policy andRegulatory Framework on Transparencyand Traceability

Continuous Inputs from UNECE Experts

Digital Mapping Update

Open Stakeholders Forum

Interactive Platform

Reports

A Traceability and Transparency Knowledge Platform on Regulations, Policies and Guidelines

Moving towards an Integrated and Collaborative Approach

Thank you!

session #2 unece policy recommendation, guidelines and ......session #2 unece policy recommendation,...

Documents