sustainability in agri-food business
TRANSCRIPT
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)
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“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
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If you’re 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
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If you’re 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
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If you’re profit-oriented…
Profit/loss of
operation
Operation capacity
and long-term
availability of
resources
Product
marketability
and demand
Economic
Environmental Social
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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
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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”
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Sustainability
=
Systems Thinking
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RESPECT
EQUITY
TRANSPARENCY
TRUST
MUTUTAL BENEFIT
SUSTAINABILITY
Because it leads to
Because it leads to
Because it leads to
Key: PARTNERSHIP
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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
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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.
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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
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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
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Why? (Nick’s top 5)
1. Hyper-globalization
2. Global wealth trends
3. Easy & affordable communication
4. Product diversification turns product customization
5. Demographics
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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
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3. Easy & Affordable Communication
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Communication (cont’d)
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Communication (cont’d)
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4. Diversification Turns “Customization”
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4. Product Customization (cont’d)
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5. Demographics
World Health Organization 24
5. Demographics (cont’d)
New Consumers & Decision-makers 25
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Source: Sustainable Brands
Social License: Consumer Response
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Source: Socialicense.com, 2010
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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
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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."
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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
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SUSTAINABILITY PLAN
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5-Level Framework
Systems
Success
Strategic
Actions
Tools
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Used with Permission
“Systems-level”
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“Strategic-level”
The Natural Step
“Success-level” Example - KPIs
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Example from Sustainability Consortium
“Action-level”
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Source: NBS, 2014
“Tool-level”
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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)?
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