SPOTT Review and exploration of existing tools - Practitioners' & developer's perspectives
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Review and exploration of existing tools
SPOTT
Practitioners’ & developer’s perspectives
Ruud Hadders
Actiam
SPOTT
Why we use this tool and for which types of application?
Use of data to support transition to
sustainable palm oil
21 March 2019, FMO, The Hague
Classification: Internal
In the news: all eyes on negative environmental and social impact
Classification: Internal Page: 4
Our view: palm oil has a future, provided it is produced sustainably
• Within our land policy, our focus is on deforestation,
pollution and the rising demand for food. Social
factors also play an important role, such as land rights
and access to food.
• Companies violating our investment principles in
relation to human rights, labour rights and pollution,
are therefore excluded (e.g. Astra International).
• However, the often justified criticism is directed at
the production method however not against palm oil
itself.
• Palm oil has a future, provided it is produced
sustainably, a view which is supported by
international organizations
• These companies are therefore engaged with clear
objectives and strict monitoring to track progress
(see next slide).
Classification: Internal Page: 5
Our role: through engagement to a sustainable trade in palm oil
Banks Investors
Loans
Upstream Downstream
Small holder Large agri- FMCG Retailers Consumers
producers companies manufacturers
Classification: Internal Page: 6
Our approach: data key in determining impact, risks and adaptive capacity
SDG impact
positive impact
safe and just space
Example of SPOTT
indicator:
Having a timebound plan
Adaptive capacity
Example of SPOTT
for achieving 100% RSPO
indicator:
Risk exposure
certification of estates
Evidence of monitoring
transition zone within 5 years
deforestation
unethical behavior
Classification: Internal Page: 7
Clara Melot
Zoological Society of London
SPOTT
How should this tool be used and what’s behind it?
SPOTT – Developer’s perspective
EU CoP Finance@Biodiversity: 21 March 2019
Biodiversity risk and opportunities in high impact sectors
Clara MELOT
SPOTT.org @ZSLSPOTT
What is SPOTT?
• SPOTT is a free, online platform supporting sustainable
commodity production and trade.
• SPOTT assesses commodity producers and traders on
the public disclosure of their policies, operations and
commitments related to environmental, social and
governance (ESG) issues.
SPOTT.orgAssessment coverage
2018 2019
50 timber/pulp producers & traders 100 timber/pulp producers and traders
– currently available – JULY 2019
70 palm oil producers & traders 100 palm oil producers, traders, refiners
– currently available and crushers
– NOVEMBER 2019
_ 15 rubber companies
– OCTOBER 2019
120 companies in total 215 companies in totalTechnical Advisory groups Palm oil: • Andy Roby, Independent Forestry Advisor • Abigail Herron - Eugenie Mathieu, Aviva Investors • Ann Weddle, NEPCon • Ben Ridley, Credit Suisse • Clotilde Henriot, ClientEarth • Gabriel Thoumi, Climate Advisers • Elizabeth Kennedy, ISEAL Alliance • Emma Keller, WWF UK • Eugenie Mathieu, Aviva Investors • Hilde Jervan, Etikkrådet • Julia Young, WWF • Naasir Roomanay, Investec Asset Management • J T Lee, Credit Suisse • Danielle Carreira and Paul Chandler, PRI • Marieke Abcouwer, ABN Amro • Peter van der Werf, Robeco • Robert-Alexandre Poujade, BNP Paribas Asset • Robert Zuehlke, Daemeter Management • Siobhan Collins, Ceres • Richard Donovan, Rainforest Alliance • Tetsuro Takase, Sumitomo Mitsui Trust Asset • Samuel Mary, PIMCO Management • Seiji Kawazoe, Sumitomo Mitsui Trust Bank Timber and pulp:
Company selection
• We select companies for assessment based on the
following factors:
• Operations in priority countries (i.e. in areas of high biodiversity
value threatened by commodity production);
• Scope and scale of operations (e.g. areas of land owned or
leased, revenue generated or market capitalisation);
• Nominations by interested stakeholders, or companies
volunteering themselves for assessment.Methodology
SPOTT assessment cycle
• We engage with companies throughout
the year;
• SPOTT only scores information if it is
publicly available;
• Assessments are carried out/supervised
by the SPOTT team;
• All our indicators and scoring
methodologies are available online.Scope
• E, S and G issues;
Sustainability policy Water, chemical, waste
• 120+ individual indicators; and leadership and pest management
• Looking at information on Landbank, maps, FMUs, Community, land and
mills and traceability labour rights
operations, commitments and
policies and reported progress; Deforestation and Certification
biodiversity standards
• No on the ground verification; HCV, HCS and impact Smallholders and
• Indicators are enabled/disabled assessments suppliers
based on a company’s scope of Peat, soils, fire and Governance and
activities, location etc. GHG emissions grievancesSome biodiversity related indicators
• #24 - Commitment to zero deforestation
• #25 - Deforestation commitment applies to scheme smallholders and independent suppliers
• #26 - Criteria for defining deforestation
• #27 - Evidence of monitoring deforestation
• #28 - Examples of habitat management and/or habitat restoration
• #29 - Implementing a landscape-level approach to biodiversity conservation
• #30 - Commitment to biodiversity conservation
• #31 - Commitment to not endanger species of conservation concern (…)
• #34 - Commitment to conduct High Conservation Value (HCV) assessments
• #35 - HCV commitment applies to scheme smallholders and independent suppliers
• #36 - Commitment to only use licensed High Conservation Value (HCV) assessors accredited by the HCV Resource Network's
Assessor Licensing Scheme (ALS)
• #41 - Commitment to the High Carbon Stock (HCS) Approach
• #42 - High Carbon Stock (HCS) assessments
• #43 - Commitment to conduct social and environmental impact assessments (SEIAs)New issues to be covered in 2019 The SPOTT team consulted TAG, companies and wider stakeholders on new indicators. 2019 assessments will include: • Approach to Gender issues (pay, no-discrimination) ; • Climate Risk Assessments ; • Natural Capital Assessments ; • Tax issues ; • Timber traceability and legality.
Log-in only features
• More features are available for free, in a
dedicated log-in area:
• Bookmark companies ;
• Download assessment data in CSV and PDF ;
• Compare company scores, track trends and
changes over time ; Register on the free SPOTT
Dashboard for extra features
• Subscribe to news alerts and invitations to
events and consultations.A tool for engagement “
We hold the high calibre content in
ZSL’s SPOTT indicator framework
in the utmost esteem as part of
”
investee engagement activities
as well as integrating it into
our financial analysis.
• SPOTT team engagements: Abigail Herron
Global Head of Responsible Investment
• Up to 50% response rate from companies ; AVIVA INVESTORS
“
• Scores of companies who respond progress
faster (double digit vs single digit).
SPOTT is a very important tool
• A growing number of companies: because it provides the means to
palm oil companies and their
• proactively promote their SPOTT score to stakeholders to identify and
”
benchmark the best examples
stakeholders and in our industry.
• use their assessment to structure
engagement responses. Tulio Dias Brito
Corporate Social
Responsibility Manager,
AGROPALMA GROUPA call to action • Many investors, banks and other financiers have developed and adopted sector specific sustainability policies to address the risks associated with the palm oil industry. • Some of these requirements are a good start but will need to evolve. • Many are yet to follow, thus potentially creating ‘leakage’. • To create a level playing field for companies, financial institutions therefore need to review and update their own requirements and engage with the companies which do not meet them.
Get in touch for more information
Timber & Pulp Palm oil Rubber Financial sector
engagementDeveloped by the Zoological Society of London (ZSL), SPOTT is a free, online platform supporting sustainable commodity production and trade. By tracking transparency, SPOTT incentivises the implementation of corporate best practice. SPOTT assesses commodity producers and traders on the public disclosure of policies, operations and commitments related to environmental, social and governance (ESG) issues. Investors, buyers and other key influencers can use SPOTT assessments to inform stakeholder engagement, manage ESG risk, and increase transparency across multiple industries. spott@zsl.org SPOTT.org @ZSLSPOTT
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