The Sustainability Consortium (TSC) Koen Boone - Director Europe TSC LEI - Wageningen UR Food SCP roundtable, Brussels 20-11-2013 Content • Introduction TSC • Sustainable Measurement and Reporting System • Use of TSC products 1 How our Work Fits In How TSC’s SMRS Fits In Breadth Corporate Reporting TSC Product Category “Traditional” LCA Detail/Specificity • Covering social & environmental • Covering 80% of consumer goods impacts in 2 years (already > ~40% of the way) • Full lifecycle approach • Member-based funding model (today) 2 The Consortium is coordinated by universities in the United States, Europe and China We are a Global Membership Organization We have members from business, academia, government and the NGO sectors. Corporate annual turnover exceeds 2 Trillion Euro 4 TSC product category output has 3 major components… Category Dossier Collection of evidence on product category environmental and social hotspots, and improvement opportunities Category Sustainability Profile (CSP) Synthesis of product sustainability knowledge and improvement opportunities Key Performance Indicators (KPIs) Questions to measure and track product category sustainability Source: TSC 5 Product categories Batch 1 • Computers, Monitors, Televisions, Mobile Devices, Printers • Beef, Milk • Laundry Detergent, Surface Cleaners, Showering Products • Toilet Tissue, Copy Paper • Plastic Toys • Grains, Packaged Cereals, Bread, Beer • Cotton • Farmed Salmon • Wine Batch 3 • Aerosol air fresheners • Hand & body lotion • Lumber • Bananas • Chocolate • Farmed shellfish • Wild caught fish • Eggs • Chicken Batch 2 • Beans, Nuts, & Oils • CDs and DVDs, Printer Ink • Dairy • Paper- Facial tissue, greeting cards, paper towels • Personal Care - Baby diapers, baby wipes, feminine/nursing hygiene • Produce • Small appliances • Sugars & Syrups • Tea & Coffee • Plush toys Batch 4 • Berries/Small Fruit • Pome fruits (Apples) • Citrus • Pork • Small Batteries • Bicycle • Hand Tools (unpowered) • Flatware • Aerosol air freshener 6 Example for pork Category Sustainability Profile (CSP) Category Dossier Literature cited and levels of evidence evaluated. Feed: • Energy LCA > 50% (Cederberg et al. 2009) Hotspots and improvement opportunities summarized. • • GHG LCA >50% (Dalaard, 2007) • Nutrients (de Vries en de Boer, 2010) • Land use (Dolman, 2012) • Worker health (Smith et al., 2013) Improvement opportunities: • Feed conversion • Feed additives • Feed formulation • Benchmarking • Precision agriculture Key Performance Indicators (KPIs) On average what is the feed conversion ratio for delivered pigs? A. Unable to determine at this time B. Participate in external initiative C. Have determined average feed conversion rate only for finishing phase D. Overall feed conversion rate is greater than or equal to 3.1:1 E. Overall feed conversion rate is between 2.8:1 3.1:1 F. Overall feed conversion rate is less than or equal to 2.8:1 Source: TSC 7 How are TSC Knowledge Products being implemented throughout supply chains? Policy/strategy setting - Supply chain Risk/impact management Improvement plans Innovation Education/Training Sustainability Measurement and Reporting System Transparency Procurement Communication to consumers 8 Reporting Platform A simple software tool can cut significant time and effort for everyone involved “Manual” Process Step 1. Each retailer gets completed KPIs & Questions from TSC TSC Step 2. Each retailer emails questions to each manufacturer Retailers Manufacturers Retailers Manufacturers Retailers Manufacturers Step 4. Each retailer completes manual collation of results Step 3. Each manufacturer emails question response back to each retailer Process with Reporting Platform Retailers Single Request TSC Single Upload IT Platform Single Response Manufacturers 9 Use of results – Exchange of KPI scores USA: • Wal-Mart • Fall 2012: 5000 suppliers responsible for billions of sales • January 2014: Thousands of suppliers • Toy wires: Save wires good for 8 times around the world Europe: • Delhaize and M&S: Small scale pilots • Ahold • Start 1st of January 2013 • All own branded products by 2015 • Co-operation with farmers organization (ZLTO) and Rabobank Winter 2014: Implementation of SAP tool by large number of American and European retailers? 10 TSC® working group structure focuses on major consumer goods sectors. Together they have identified over 500 unique improvement opportunities and 400 hotspots ELECTRONICS GENERAL MERCHANDISE FOOD BEVERAGE & AGRICULTURE CLOTHING, FOOTWEAR & TEXTILES HOME & PERSONAL CARE RETAI L PAPER, PULP, & FORESTRY MEASUREMENT SCIENCE PACKAGING TOYS The Retail and Measurement Science Consortium Working Groups consists of Tier I retailer members. Four years ago, when I received an email from the wine team asking for an attribute in bulk shipping, I would have spent two weeks on Google, and talking to people about wine, trying to understand if bulk shipping counted. I probably would have told them no. My buyer would have sulked, given up on sustainability and we would have not made progress in the wine category. This year, I looked up the information in The Consortium’s CSP’s and KPI’s. I then checked this information against the supplier and wrote an email back that day approving the category. Carmel McQuaid, Marks & Spencer Co-Operating With Other Initiatives v v • EU Environmental Footprint • Participating in piloting (Detergents, shoes, retail and food) • Consumer Goods Forum • Endorsed TSC • WBCSD • Working on structural co-operation • Global Reporting Initiative • MoU? • Green Public Procurement • Dutch and American government • SAI • Beef/Dairy • CDP: TSC member • Sector, Product or sustainability theme specific initiatives The Sustainability Consortium® has been recognized as a World Changing Idea by Scientific American Magazine The Sustainability Consortium was ranked as a top ten world changing ideas for 2012 by Scientific American Magazine. TSC measurement and reporting system has been recognized as superior due to its comprehensive nature and cross-sector approach. “The Consortium’s ratings will factor in closely held data on emissions, waste, labor practices, water usage and other sensitive factors…” –Adam Piore, Scientific American