PRODUCTION STANDARD REVIEW PRE CONSULTATION LAUNCH - Bonsucro Nahuel Tuñon - Standards Manager

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PRODUCTION STANDARD REVIEW PRE CONSULTATION LAUNCH - Bonsucro Nahuel Tuñon - Standards Manager
PRODUCTION STANDARD REVIEW PRE
CONSULTATION LAUNCH
Nicolas Viart – Director Standards & Innovation
Nahuel Tuñon – Standards Manager
Bonsucro
PRODUCTION STANDARD REVIEW PRE CONSULTATION LAUNCH - Bonsucro Nahuel Tuñon - Standards Manager
INTRODUCTION
 TO STANDARD
   UPDATES
PRODUCTION STANDARD REVIEW PRE CONSULTATION LAUNCH - Bonsucro Nahuel Tuñon - Standards Manager
Bonsucro Mass Balance Chain of Custody
PRODUCTION STANDARD REVIEW PRE CONSULTATION LAUNCH - Bonsucro Nahuel Tuñon - Standards Manager
Chain of Custody Standard - objectives
• Provide a simplified, easier to implement Chain of Custody
  Standard.

• Resolve some inconsistent interpretations

• Drive the uptake of certified material
PRODUCTION STANDARD REVIEW PRE CONSULTATION LAUNCH - Bonsucro Nahuel Tuñon - Standards Manager
What are the changes from Version 4 & Version 5

                                                           Head Office

 • Re-ordered the indicators and
   reworded for clarity.
 • Separated out the ChoC Standard    Site A: Factory in           Site B: Factory in
   from the EU RED Standard                Mexico                       Canada
                                                                                              Inventory check
 • Expanded the principle of Mass                                                             every 3 months

   Balance to allow for Group Mass   Date        Item                Site   IN          OUT
   Balance (only applicable to       January     Sugar Purchased     A      200
   “Generic” CHoC)                   February    Sugar sold          B                  100
 • New indicator on Training 1.1.4   Group                                  100
                                     Balance
PRODUCTION STANDARD REVIEW PRE CONSULTATION LAUNCH - Bonsucro Nahuel Tuñon - Standards Manager
Implementation timeline

  •   Official Launch – 15th March 2019. Publication of version 5.
  •   April – Publication of Standard in Spanish and Portuguese
  •   Implementation period – Any audits scheduled between 15th March – 15th
      June can be against version 4 or version 5.
  •   Any audit after 15th June will be audited against version 5.
  • Requalification for auditors – Auditors have been trained on the latest version.
  • Before an audit against version 5 can take place, the certification body must be
      ready
PRODUCTION STANDARD REVIEW PRE CONSULTATION LAUNCH - Bonsucro Nahuel Tuñon - Standards Manager
Launch of the Production Standard Review

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PRODUCTION STANDARD REVIEW PRE CONSULTATION LAUNCH - Bonsucro Nahuel Tuñon - Standards Manager
Governance structure of the Standard Revision

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PRODUCTION STANDARD REVIEW PRE CONSULTATION LAUNCH - Bonsucro Nahuel Tuñon - Standards Manager
2 main phases for the Standard Development

              April 2019 –                               September 2020
             December 2020                                 – June 2021

 Revision of the Bonsucro Production Standard   Adaptation to the Smallholder context

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PRODUCTION STANDARD REVIEW PRE CONSULTATION LAUNCH - Bonsucro Nahuel Tuñon - Standards Manager
Timeline of Production Standard Development

                     April – May                               June – December
                        2019                                         2019

                     TAB defines
   Pre-                scope of                            Standard Development Phase
Consultation          revision +
                      forms WG

                                                                     Public             Final
                                                                  consultation      amendments
     Public Consultation           2nd draft development                                              ©
                                                                                     + Standard       B
                                                                  Pilot audits        approval        o
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       Jan – March                      April – July              July – August     September –       s
          2020                            2020                        2020         December 2020      u
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Working group selection criteria
•   Understanding of Bonsucro and the environment in which the organization
    operates;
•   Experience of working directly on the ground, e.g. by implementing the Bonsucro
    Production Standard.
•   Proficiency in the issues related to sugarcane and sustainability, and ability to
    propose innovative solutions.
•   Experience in similar revision processes (desired).
•   Balance between different geographies, stakeholder level (farmer, mill, NGO,
    buyer), expertise (social, environmental, technical, certification)
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•   Commitment to dedicate an appropriate amount of time to the Working Group.
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•   Attendance to Working Group meetings (both physical and web-based) and                 o
    adequate preparation for meetings and discussions; -                                   n
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Make up of the Standard Revision Working Group
Responsibilities:                        9 – 12 Members
• Discuss & make recommendations         • 5 – 8 experts will technical proficiency
  on content of the Standard               and knowledge in either social,
                                           environmental, economic issues
• Provide technical solutions & advise     present in sugarcane.
  on the revision and development of     • 1 expert with relevant auditing
  the indicators                           experience in sugarcane.
• Analyze and consolidates inputs        • 2 members of the MC chosen to
  from stakeholders                        represent views of membership                 ©
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                                         • 1 Representative chosen by the TAB to         o
• Approves draft versions of Bonsucro      represent their views                         n
  Standard.                                                                              s
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TAB members
 Jean-Claude Autrey
                               Peter Allsopp                 Raoul Lionnet
 TAB Chair
                               Expertise: Pest management    Expertise: Milling,
 Expertise: Global research
                               Organisation: ex. Sugar       processing and refining
 Organisation: ISSCT
                               Research Australia Ltd        Organisation: Consultant

 Manoel Régis Lima Verde       Roshan Tamak                  Damien Sanfilippo
 Leal                          Expertise: Smallholder        Expertise: Standards
 Expertise: Biofuels           farmers                       Organisation: Better Cotton
 Organisation: CTBE            Organisation: DCI Shriram     Initiative

 Armando Ortega                Derric Pennington             Aurea Nardelli
 Expertise: Social             Expertise: Environment &      Expertise: biofuels,
 sustainability                data management               Standards, social
 Organisation: The Coca-Cola   Organisation: University of   Organisation: Roundtable
 Company                       Minnesota                     Responsible Biomaterials
Decision making process

    Working   • Approves the draft content of the
     Group      Standard

                                     • Verifies the revision process has been
                                       followed as required
                         TAB         • Verifies the revision is within intended
                                       scope
                                     • Holds veto over content
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                                                                • Approves composition of          o
                                                                  Working Group
                                                    Board       • Approve the final draft for
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Pre - Consultation
• Aim is to gather input from all stakeholders on what broad changes should
  be considered during the Revision.
• Scope of the Revision determined by pre-consultation & analysis of know
  gaps and issues
• Avenues for Consultation
          § Today’s session
          § Online survey
• All consultations (pre & public) will be a mixture of surveys, webinars, in-
  person workshops & pilot audits.                                                  ©
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• All consultation documents will be translated to Spanish, Portuguese and          o
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Production Standard – overview
The main objective of the Bonsucro Certification System is to promote
measureable standards in key environmental and social impacts of
sugarcane production and primary processing while recognizing the
need for economic viability.
The Standard set measurable performance objectives that rely on the
collection of production data through the Bonsucro calculator.
Bonsucro Standard’s

  Production Standard             Production Standard for          Chain of Custody Standard
                                   Smallholder Farmers
A comprehensive metric standard    Adaptation of the Production   Ensures the traceability of sustainability
   for sustainable farming and     Standard applicable only to      claims along the supply chain from
       milling of sugarcane.          smallholder farmers                the farm to the end user.
Who does the Production Standard apply To:

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Why Bonsucro Certified Sugar?
The Standard’s principles and indicators address the three pillars of sustainability

        Environmental                           Social                            Economic
                                     Legal Compliance
 Water management                                                        Efficiencies & Profitability
                                     Land rights
 • Efficiency of water use                                               • Management tool for improved
                                     Labour Rights
 Conservation                                                                performance
                                     • ILO conventions
 • Biodiversity loss & High                                              • Improved technical knowledge
                                     Salary and contracts
    Conservation Value (HCV) Areas                                       • Investment in R&D
                                     • Minimum wage
 Environmental Impact                                                    • Use of Bonsucro Calculator
                                     • Existence of contract
 Agrochemicals                                                           • Recovery of sugar
                                     Health & Safety
 • Total amount and Banned                                               • Industrial efficiency

                                                                                                          © Bonsucro 2016
                                     • Drinking water
    agrochemicals
                                     • Safety assessments
 Impacts management
                                     • First aid & emergency provision
 • Greenfield expansion
                                     Vocational training
                                                                                                          19
Bonsucro Production Standard

      5 Principles (+1)                  18 Criteria   53 Indicators
                                                         16 Core Indicators
  ① Obey the law

  ② Respect human rights and
    labour standards

  ③ Productivity –
    Manage input, production &
    processing efficiencies to enhance
    sustainability

  ④ Environmental –
    Actively manage biodiversity
    and ecosystem services

  ⑤ Continuous Improvement -
    Continuously improve key
    areas of the business
                                                       37 Non-Core Indicators
  ⑥ EU RED Compliance
Principle 1 – Obey the law
•   Comply with national legislation

•   Right to use land and water
Principle 2 – Respect Human Rights and Labour
Standards

Based on The ILO Declaration on Fundamental Principles and Rights at Work

•   Criteria 2.1 focuses on social rights

•   Criteria 2.2 focuses on health and safety for employees

•   Criteria 2.3 focuses on ensuring that workers receive the minimum wage for their
    labour

•   Criteria 2.4 ensures that all workers receive a contract
Principle 3 – Manage Input, Production and
Processing Efficiencies to Enhance Sustainability
•   Criteria 3.1 focuses on the factors that affect the economic sustainability of
    sugarcane production, namely the:

    •       Quality of raw material
    •       Quality of products produced
    •       Quality of process
•   Criteria 3.2 aims to monitor global warming emissions with a view to minimizing
    climate change impacts.

        •    The Bonsucro calculator includes a built-in GHG calculator that allows you to easily
             measure the Green House Gas Emissions of sugarcane & derived products.
Principle 4 – Actively Manage Biodiversity and
Ecosystem services
•   Water quality

•   Land conversion

•   Environmental Impact Management Plan
•   Fertiliser use

•   Agro-chemical use
Principle 5 – Continuously Improve key areas of the business

• Environmental Social Impact Assessment

• Vocational training

• Investment into R&D

• Consultation with Stakeholders

• Quality of Cane

• Management of resources

• Energy footprint
Pre-Consultation

2 phases of pre-consultation
    • Scope of Standard
    • Specific key issues to be strengthened in the Standard
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Focus of the Standard
Continuous Improvement focus (Stepwise): For most companies, meeting the requirements of the
Standard can take a long time & effort. In most cases this can only be completed over a period of
several years of concerted effort, all of which needs to be focused and carefully directed to specific
issues.

Q – Should the Standard Revision look at phased Implementation of indicators (Y/N)

For example: You have 2 , 3 , 5 years to become compliant on certain indicators, including most
critical.
Indicator                                        Year 1 Compliance     Year 3 Compliance
5.2.3 % Ground cover of tops or leaves after     15%                   30%
harvest
Focus of the Standard
Moving past the unit of certification:
Requirements set in the Bonsucro Standard are
only applicable in the farms included in the unit of
certification.

Q – Should the Standard Revision look to apply
critical indicators in the whole supply area of a
certificate holder? (Y/N)

Critical indicators could include:

•   HCV areas

•   Recruitment practices
Focus of the Standard
Certifying Improvement: Bonsucro currently prescribes metric thresholds to be met.
For example Net GHG emissions per ton of cane have to be under 40 kg CO2 eq

Instead, the Standard could ask that certified operators commit to improving their
performance year on year;

For Example: Certified units commit to lowering GHG emissions per ton of cane by
x% a year.

Q – Should the Standard Revision look at incorporating improvement as a
requirement. (Y/N)
Focus of the Standard
Risk based system: Using risk assessment to prioritize the implementation of the
Standard towards high risk elements.

For example – Certified mills units would need to conduct a risk analysis to
determine the most critical issues in their area, prioritizing interventions in those.

Do we allow adaptability of the global standard to make it more relevant to
identified high risks / priority areas in a particular area?

Q – Should the Standard Revision look to incorporate risk based application of
Standards?
Focus of the Standard
Alignment with different guidelines: Should the Standard Revision be aligned with
established guidelines for example;

•   OECD / FAO - Guidance for Responsible Agricultural Supply Chain

•   UN Guiding Principles

•   UN Global Compact

•   ILO Guidelines

•   FAO Policy Guidelines

Q – Should the Standard Revision look to incorporate established guidelines?
Introducing or strengthening key requirements
Strengthening or Incorporating Social Indicators
1.   Living Wage / Income: Workers & farmer
     remuneration is sufficient for them and their
     families to have a decent standard of living.
2.   Local communities: Introduce requirements
     to support local communities and avoid
     negative impacts of certified operations.

3.   Gender: Strengthen requirements against
     gender discrimination and violence.
     Examples include supporting equality and
     empowerment of women; awareness raising
     on equal rights for women, equal pay for
     equal jobs and measures for mitigation of
     sexual harassment.
Strengthening or Incorporating Social Indicators
4. Forced Labor: Strengthen requirements on prevention, detection,
   remediation of cases of forced labor for example on human
   trafficking, recruitment fees, exploitation of workers including
   migrants.
5. Stakeholder views on operators: Strengthen requirements on
   stakeholders engagement into the operations of the certified
   entity.
Improving our strengthening key requirements
Environmental
Strengthening or Incorporating Environmental
Indicators

1. Climate resilience: operators take concrete steps to ensure they
   are not negatively impacted by climate change.

2. 0 deforestation: Operators pledge and take steps to remove
   deforestation entirely from their operations and their supply
   chains.

3. Integrated Pest Management combines different management
   strategies and practices to grow healthy crops, and minimize the
   use of pesticides. Monitoring and prevention of pests is the first
   step, and chemical control can only be used as the last resort.
Strengthening or Incorporating Environmental
Indicators

4. Water: Should the revised standard incorporate local water sources and
   stress factors in determining the metric thresholds to be met.
5. GMO crops: In view of latest technological developments in the
   sugarcane sectors, should the Standard have specific provisions for the
   production of genetically modified cane
6. Organic production methods (reduce footprint): should the Standard
   encourage the use of organic production methods.
7. Protecting & managing sensitive ecosystems: should the Standard
   require operators to actively contribute to improvement of sensitive
   ecosystems (instead of reducing impact).
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