The Sustainable Soy Sourcing Guidelines Another important step for the consumer goods industry that looks to achieve zero net deforestation by 2020 Brought to you by the Sustainability Pillar of The Consumer Goods Forum CGF Sustainable Soy Sourcing Guidelines 1. Introduction Following its 2010 deforestation resolution, the Consumer Goods Forum (CGF) recognizes its responsibility to ensure that the sourcing of soy does not contribute to deforestation, and has consequently taken action in drafting ‘CGF sustainable soy sourcing guidelines’ for our Industry. In line with this The Forum asks companies not to source soy from production on land with High Conservation Value (HCV), and high-carbon stock. The CGF recognizes the complexity and length of the soy supply chain and call upon other stakeholders along the supply chain to work together to implement the CGF Sustainable Soy Sourcing Guidelines. These parties include (but are not limited to) commodity traders, feed manufacturers, agricultural organisations, NGOs, etc. The CGF Sustainable Soy Sourcing Guidelines should be considered ‘a living document’ and will be updated for latest developments every other year. 2. The CGF Resolution on Deforestation (November 2010) “As the Board of The Consumer Goods Forum, we pledge to mobilise resources within our respective businesses to help achieve zero net deforestation by 2020. We will achieve this both by individual company initiatives and by working collectively in partnership with governments and NGOs. Together we will develop specific, time bound and cost effective action plans for the different challenges in sourcing commodities like palm oil, soya, beef, paper and board in a sustainable fashion. We will also work with other stakeholders – NGOs, Development Banks, Governments etc – to create funding mechanisms and other practical schemes that will incentivise and assist forested countries to conserve their natural assets and enable them to achieve the goal of zero net deforestation, whilst at the same time meeting their goals for economic development”. 3. Definition zero net deforestation The CGF follows the WWF definition of zero net deforestation (link) “Zero Net deforestation” can be distinguished from "zero deforestation", which means no deforestation anywhere "Zero net deforestation" acknowledges that some forest loss could be offset by forest restoration. Zero net deforestation is not synonymous with a total prohibition on forest clearing. Rather, it leaves room for change in the configuration of the land-use mosaic, provided the net quantity, quality and carbon density of forests is maintained. It recognizes that, in some circumstances, conversion of forests in one site may contribute to the sustainable development and conservation of the wider landscape (e.g. reducing livestock grazing in a protected area may require conversion of forest areas in the buffer zone to provide farmland to local communities). However, zero net deforestation is not achieved through the conversion of primary or natural forests into fast growing plantations. Such conversion would count as deforestation in assessing progress against the target. 2|P a g e CGF Sustainable Soy Sourcing Guidelines 4. Antitrust All work of The Consumer Goods Forum (The Forum) is carried out in accordance with The Forum’s Antitrust Guidelines, and in compliance with all competition laws, thus ensuring independence of activity, collaboration only on non-competitively sensitive issues, and confidentiality of information. Participating companies will undertake their own decisions on IF and HOW to implement the elements of this proposal in their individual supply chains. 5. Approach A stepwise approach is recommended for sourcing deforestation-free soy: Individual companies conduct a materiality assessment to determine the appropriate scope of the soy sourcing policy; Develop soy sourcing policies that seek transparency along the supply chain and support the production of deforestation-free soy; Disclose company policies, goals and progress that support deforestation-free soy in their individual supply chains; and Individual companies may set out their own requirements, which may include higher standards than the minimum recommended in these guidelines. 6. Scope For individual members, the scope of this proposal is to be determined depending on the use of soy in their respective businesses. This should consider indirect use of soy (e.g. in feed) as well as direct use in products. It is recommended to individual members to encourage their first level suppliers to supply deforestation-free soy in the supply chain of their products, therewith supporting the production of deforestation-free soy along the extended soy supply chain. For The Forum purposes, the scope of this proposal on soy used includes (but is not limited to) the following categories: Soy used as feed in the supply chain of animal derived products: - Poultry products - Pork products - Dairy products - Beef products - Egg products - Fish products Usage in food - Cooking oil, margarines - Soy milk - Fresh – Edamame - Soya sauce - Bean curd – Tofu - Soya oil 3|P a g e CGF Sustainable Soy Sourcing Guidelines Additives - Glycerides/ Lecithin / Tocopherols Other soy (containing and derived) products For retailers, the scope for products applies to private label brands. It is recommended that companies conduct a materiality assessment across the breadth of their product sourcing to determine the appropriate scope of their individual company sourcing policies. The Forum’s soy working group will facilitate sharing of tools to assist with materiality assessments. 7. Risk Criteria and Classifications Following its deforestation resolution, The Forum pledges to help achieve zero net deforestation. This means we prohibit production on land with High Conservation Value (HCV)1,2 and high carbon stock3 with a conversion cut-off date not later than 2009 Forests, savannah, and grasslands in South America are currently at greatest risk from soy production. The primary focus for CGF members is therefore the Amazon, the Cerrado, the Atlantic Forest, the Gran Chaco, and the Chiquitano4. This will be reviewed periodically by the CGF soy working group and if other regions or criteria need to be included the Risk Criteria and Classifications will be updated. Considerations for selecting high priority regions or HCV areas include: Presence of tropical forests or HCVs; Risk of deforestation due to soy; Input from relevant stakeholders (eg NGOs, producers). 8. Verification There are a range of verification mechanisms that may be used to increasingly reduce the risk of sourcing soy contributing to deforestation in companies supply chains. The minimum recommended in these guidelines is the ISCC standard. ISCC Plus, which allows ISCC units to extend certification to food and feed products and includes an option for non-genetically modified soy, has not yet been reviewed by independent benchmarking studies5 such as ITC6. 1 Including grassland with high biodiversity value Please see http://www.hcvnetwork.org/ for a working definition of HCV 3 Please see : http://www.greenpeace.org/international/Global/international/briefings/forests/2013/HCSBriefing-2013.pdf for the definition of high carbon stock 2 4 WWF, ‘The Growth of Soy, Impacts and Solutions’, 2014 International Union for the Conservation of Nature NL (2013): “Betting on best quality” IUCN National Committee of the Netherlands, 27 November 2013 (http://www.iucn.nl/en/news/publications/?14101/Betting-on-best-quality) 5 6 http://www.tsibenchmarking.org/benchmarkhome/ 4|P a g e CGF Sustainable Soy Sourcing Guidelines Summary of focus for the 3 certification systems: RTRS PROTERRA ISCC7 Land conflicts Labour rights Protection of nature and control of deforestation Control of hazardous pesticides and / or fertilisers Crop rotation Accommodate a requirement for non-genetically modified soy X X Social criteria Protecting the interests of smallholders Health and safety regulations Transparent multi-stakeholder governance of the standard Third party verification by independently accredited certification bodies 9 X8 X Criteria Individual companies may set out their own guidelines, which may include higher standards than the minimum recommended in these guidelines. 1. Verify legality and reducing the risk of soy contributing to deforestation. ISCC 2. Verify legality, reducing the risk of soy contributing to deforestation, and a ban on genetically modified soy. ProTerra10 3. Verify legality, reducing the risk of soy contributing to deforestation, accommodate a requirement for non-genetically modified soy, and multi-stakeholder governance of the standard with full certification requirements. RTRS These three mechanisms are sufficient to verify low risk of soy contributing to deforestation as defined by The Forum’s sourcing guidelines and meet the goal of helping to achieve zero net deforestation set forth in the resolution. 7 ISCC (ISCC 202: Sustainability Requirements for the Production of Biomass, ISCC 11-03-15, V2.3-EU). ISCC has a group certification program. The rating on protecting smallholders’ interests will be updated when reviewed by independent benchmarking studies. 9 In process. 10 ProTerra - refers to the currently in force standard V2.9.5 (2012); ProTerra Standard V3.0 is in Draft for Public Consultation. 8 5|P a g e CGF Sustainable Soy Sourcing Guidelines 9. Transparency It is recommended that participating members of The Forum publicly disclose their soy sourcing policies, goals and goal progress. 10. KPIs Goal: help achieve zero net deforestation by eliminating products that contribute to deforestation in The Forum companies’ supply chains by 2020. KPIs: 1. Number of Forum members for which the sourcing of soy is relevant (either through direct or indirect use), that have a public commitment on the sourcing of sustainable soy. 2. Percentage of soy directly sourced from HCVs and high carbon stock lands in South America11. 11 Subject to modification based on experience gained during implementation 6|P a g e
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