sustainability in agri-food business

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  • Introduction to

    Sustainability

    Nick Betts

    Business Management

    OMAFRA

    February 2016

  • Development that meets the needs of

    the present without compromising the ability of future generations to meet

    their own needs.

    Gro Harlem Brundtland Prime Minister, Norway (1981, 86-89, 90-96)

    World Commission on Environment & Development (1983-87)

    Director-General, World Health Organization (1998-2003)

    2

  • We live today in an age of

    sustainababble, a cacophonous

    profusion of uses of the word

    sustainable to mean anything from

    environmentally better to cool.

    Robert Engelman World Resources Institute

    3

  • 4

  • If youre socially-oriented

    Maintaining viable

    business for the

    future

    Fostering support

    for the next

    generation Ability to engage with the community

    (local, regional, or global)

    Economic

    Environmental Social

    5

  • If youre environmentally-oriented

    Ensuring continued

    funds to sustain

    your activities

    Maintaining and

    decreasing impact

    on environment

    Ability to

    communicate

    your message

    and your

    example

    Economic

    Environmental Social

    6

  • If youre profit-oriented

    Profit/loss of

    operation

    Operation capacity

    and long-term

    availability of

    resources

    Product

    marketability

    and demand

    Economic

    Environmental Social

    7

  • Sustainability may be defined as a

    values-laden umbrella concept

    about the way in which the

    interface between environment & society

    (including its institutions & individual members)

    is managed to ensure that human needs are

    met without destroying the life supporting

    ecosystems on which we depend.

    Wayne Visser The Age of Responsibility

    8

  • Animal Welfare

    Anti-corruption Community Involvement & Philanthropy

    Consumer Health, Safety, Privacy, or Support

    Education or Culture Employee Ethics

    Employment Creation

    Fair competition Capacity-Building

    Pollution Prevention

    Clean Technology

    Climate Change

    Fair Taxation

    Gender

    Diversity & Non-discrimination

    Sustainable Resource Use

    Human Rights & Security

    Intellectual Property & Access to Technology

    Environment Governance & Risk

    Public Health

    Fair Supplier Relations

    Fair Marketing

    Labour Practices

    Political Involvement

    Social Development

    Human Development Work Health & Safety

    (Economic Inequality)

    Sustainability

    9

  • Sustainability

    =

    Systems Thinking

    10

  • RESPECT

    EQUITY

    TRANSPARENCY

    TRUST

    MUTUTAL BENEFIT

    SUSTAINABILITY

    Because it leads to

    Because it leads to

    Because it leads to

    Key: PARTNERSHIP

    11

    Internal Intangible

    Stakeholder Intangible

    Supply Chain Tangible

    David Murphy, 2015

  • The 7 Drivers for (Voluntary) Sustainability

    1. Reduce Costs

    2. Conserve Resources

    3. Attract, Retain & Motivate Talent

    4. Satisfy Customer Needs

    5. Develop New Business Opportunities

    6. Attract Capital & Social Investment

    7. Legal Compliance & Legal Action/Activism

    12

    Source: University of Cumbria, 2015

  • Sustainability is the strategic philosophy used to change action and plan for the future;

    Social responsibility the responsibility to be communicate these actions appropriately.

    13

  • Corporate Social Responsibility vs Sustainability

    CSR Sustainability

    Vision Looks backwards

    Reports actions

    Looks forwards

    Plans change

    Targets Opinion-formers

    (advocates, media)

    Value chain management

    (suppliers to consumers)

    Business Compliance Business practice

    Management Communications Operations/Marketing

    Reward Stakeholders Citizenry

    Drive Social Capital

    Existing market reputation

    Emerging markets opportunities

    14

  • A brand is no longer what we tell

    the consumer it is it is what

    consumers tell each other it is.

    - Scott D. Cook, CEO Intuit

    15

  • Why? (Nicks top 5)

    1. Hyper-globalization

    2. Global wealth trends

    3. Easy & affordable communication

    4. Product diversification turns product customization

    5. Demographics

    16

  • 1. Hyper-globalization

    Trade integration

    Significant decrease in information and

    communication costs

    Fragmentation of manufacturing across boarders

    Individual production stages geographically

    located where lowest COP is

    Rise in multinational corporations (>80,000) and

    foreign direct investment

    Accounts for 67% of world trade

    Source: Subramanian & Kessler, 2013 17

  • 2. Global Wealth Trends

    18

  • 3. Easy & Affordable Communication

    19

  • Communication (contd)

    20

  • Communication (contd)

    21

  • 4. Diversification Turns Customization

    22

  • 4. Product Customization (contd)

    23

  • 5. Demographics

    World Health Organization 24

  • 5. Demographics (contd)

    New Consumers & Decision-makers 25

  • 26

    Source: Sustainable Brands

  • Social License: Consumer Response

    27

    Source: Socialicense.com, 2010

  • 28

    Used with Permission

  • Development of Current State (Agriculture)

    Chemical Factors

    Bio- Factors

    Physical Factors

    Soil Quality

    Air Quality

    Water Quality

    Environ Quality

    Economic Viability

    Social Respon-sibility

    Soil Quality Environmental Quality Agricultural Sustainability

    29

  • Sustainable Agriculture

    "Sustainable agriculture is the efficient

    production of safe, high quality agricultural

    products, in a way that protects and improves

    the natural environment, the social and

    economic conditions of farmers, their

    employees and local communities, and

    safeguards the health and welfare of all

    farmed species."

    30

  • Sustainable Agriculture, applied

    Profitable way of producing high quality food and

    fibre that,

    Protects and renews natural environment

    Builds local economies

    Enhances quality of life of farms/farm workers

    31

  • SUSTAINABILITY PLAN

    32

  • 5-Level Framework

    Systems

    Success

    Strategic

    Actions

    Tools

    33

  • Used with Permission

    Systems-level

    34

  • 35

    Strategic-level

    The Natural Step

  • Success-level Example - KPIs

    36

    Example from Sustainability Consortium

  • Action-level

    37

    Source: NBS, 2014

  • Tool-level

    38

    Fulfillment Delivers on commitments

    Innovation Furthers path of sustainability

    Informal Affects

    values/behaviour

    Formal Establishes

    rules/procedures

  • Sustainability: 3 Questions

    1. Is this action moving you toward or away

    from your sustainability vision?

    2. Is this action allow you to be flexible in

    advancing your sustainability vision?

    3. Will this action offer an adequate ROI

    (political, social, or other)?

    39

  • Nick Betts

    nicholas.betts@ontario.ca

    @SustainingAg

    linkedin.com/in/nbetts

    40

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