Baruch College’s Greenwashing Seminar April 3, 2009 © Copyright 2007 Rainforest Alliance Sunday, July 17, 2016 2 What is the Rainforest Alliance? The Rainforest Alliance is an international, nonprofit environmental and sustainable development organization. We work to conserve biodiversity and ensure sustainable livelihoods by transforming… Consumer behavior Land use practices © Copyright 2007. 2007 Rainforest RainforestAlliance Alliance Business practices Sunday, July 17, 2016 3 Transforming the global marketplace Forest Products: We have certified 3% of the working forests (130 million acres) in 64 countries. Agriculture: We have certified 2% of the world’s coffee, tea, and cocoa, 15% of the bananas; over 1.3 million acres, 33,000 farms. (Coffee, citrus, bananas, pineapple, cacao, flowers, macadamia nuts, ferns, passion fruit, plantains.) Tourism: Created Sustainable Tourism Network of the Americas, recruited more than 40 tour operators to source sustainably; trained more than 4000 small and medium tourism operations in nine countries. © Copyright 2007 Rainforest Alliance Sunday, July 17, 2016 4 What is Rainforest Alliance certification? As an independent, third party we award a seal of approval to farm and forestry operations that meet our guidelines. Rainforest Alliance guidelines are comprehensive and balance ecological, economic and social considerations. Our seal is a guarantee to consumers that the products meet our set of criteria for sustainability. Certification is a strictly voluntary, non-governmental process. © Copyright 2007 Rainforest Alliance Sunday, July 17, 2016 5 Rainforest Alliance Corporate Partners © Copyright 2007 Rainforest Alliance Sunday, July 17, 2016 6 Chiquita Invested $20 million over 9 years to convert 100% of Chiquita-owned farms to Rainforest Alliance CertifiedTM As a result: • • • • • • Reforestation of 2000 acres in key buffer zones, using native species Recycle or reuse 80% of the plastic bags and twine used Integrated Pest Management used on all farms; fewer herbicides now used, resulting in $4.8 million annual savings in agrochemical costs since 1997 $3.8 million annual savings from recycling of pallets, packaging $200 million in increased sales Farm wages twice as high as local standard; child care and environmental education provided on most farms © Copyright 2007 Rainforest Alliance Sunday, July 17, 2016 7 Green Building and Goldman, Sachs & Co. Goldman Sachs has worked extensively with the Rainforest Alliance on their new, LEED Gold certified, global headquarters in lower Manhattan. • Construction contracts require all FSC wood inputs • Work throughout the supply network to secure and verify necessary FSC FM and COC certifications • Beyond construction, work continues - sourcing of paneling, cabinets and office furniture • Also help with certified paper, coffee and chocolate © Copyright 2007 Rainforest Alliance Sunday, July 17, 2016 8 Coping with Change Managing Risks Top motivators of companies investing in sustainability and CSR: 1. 2. 3. 4. controlling rising costs, competitive advantage, product differentiation and growing demand. All unlikely to decrease in economic downturn. (Aberdeen) © Copyright 2007 Rainforest Alliance Sunday, July 17, 2016 9 Coping with Change Managing Risks Ernst and Young lists among top ten strategic risks for global business in 2008 : 1. cost inflation, 2. energy shocks, 3. regulatory and compliance risk, 4. consumer demand shifts and 5. failing to anticipate greening trends. © Copyright 2007 Rainforest Alliance Sunday, July 17, 2016 10 Coping with Change Managing Risks More than half of 257 $1B plus companies surveyed saw: 1. 2. 3. Enhanced reputation Cost reduction and Revenue growth …as top opportunities associated with greening supply chains. (Ernst & Young/Economist Intelligence Unit) © Copyright 2007 Rainforest Alliance Sunday, July 17, 2016 11 Reputation and Revenue Growth Green consumers with less to spend requires: 1. Lots of "reputational capital," and 2. Getting sustainable products into mainstream outlets at mainstream prices. Which requires integrating sustainability across the supply chain. © Copyright 2007 Rainforest Alliance Sunday, July 17, 2016 12 About Rainforest Alliance The Rainforest Alliance is a 22 years old organization with work in 63 countries. There are 300 staff in 13 countries and our operating budget for FY09 is $30M. We have 35,000 members and $3B in annual sales of Rainforest Alliance CertifiedTM products. We have certified 33,000 thousand farms on 1.3 million acres and certified 130 million acres of forests in 1900 operations. We have also trained over 4000 tourism entrepreneurs in best practices for sustainable tourism. © Copyright 2007 Rainforest Alliance Sunday, July 17, 2016 13 Ana Paula Tavares Senior Vice President atavares@ra.org www.rainforest-alliance.org (212) 677-1900 © Copyright 2007 Rainforest Alliance Sunday, July 17, 2016