What are Landscape Approaches and
When do Businesses Choose to Engage?
Thispaperdrawsfrommorethan30corporateinterviewsandaworkshopsponsoredby
theRockefellerFoundationattheirBellagioCenterinItaly.Thepaperwaswrittenby
PeterErikYwema(SAIPlatform)andHalHamilton(SustainableFoodLab),withdirect
inputfromAnnaSwaithes(SABMiller),JanKeesVis(Unilever),andDuncanPollard
(Nestle).ThepaperalsoborrowsfromworkbyUtaJungermanandViolaineBerger(World
BusinessCouncilforSustainableDevelopment).
27June2016
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Introduction
Arelandscapeapproachesthenextbigthingorapassingfad?FromtheWBCSDtoIDH,andIUCNto
EcoAgriculturePartners,initiativesaresproutingtopromote,learnandencouragecompaniestoget
involved.Butwhat’sinitforbusiness?
Actually,manycompaniesarealreadyinvolvedinlandscapeapproaches,theymayjustnotknowit,or
callitthat.Waterstewardship,jurisdictionalapproaches,andmanylarge-scaleprojectsinvolving
multiplestakeholdersarealllandscapeapproaches.
Thereissomeconfusionaroundthe‘businesscaseforlandscapeapproaches’.SomeNGO’swonderwhy
theprivatesectorisnot(always)involvedinlandscapeapproaches.QuiteoftentheseNGOshave
existinginitiativesinmindthatstruggletofindsupportandresources.Theirunarticulatedunderlying
assumptionseemstobe:businessesshouldtakeresponsibilityandparticipate.Thereislackof
understandingoftherulesofengagementthatdeterminethewillingnessandpotentialofcompaniesto
playarole.
Thispaperaimstoshedsomelightforcompaniesonhowtoevaluatethepotentialoflandscape
approaches,andfornon-businessorganizationstounderstandthedriversforbusinessparticipationin
landscapeapproaches.
What do we mean by ‘landscape approaches’?
EcoAgriculturePartnershaveidentifiedover80namesfortheconcept.Let'sjustsaythatfor
businesses,ifyouneedtothinkandworkoutsidethefence-line,orbeyondthesupplychain
boundaries,thenthismaybetheapproachthatacompanyneedstotake.Thisisespeciallythe
caseforcompaniesthathavebumpedintothelimitsofcertification,orhaveadoptedbroader
corporategoalstocreatesharedvalueordeliverdevelopmentoutcomesthatlinktothe
SustainableDevelopmentGoals.Landscapeapproachesusuallyinvolvemanystakeholderswith
somekindofinterestinthelandscape.Landscapeapproachescanhaveanysize,froma
communityleveltothesizeofacountry.Inthispaperweusetheword‘approach’toindicate
thewidestpossiblerangeoflandscapeapproaches.Whenreferringtoaparticularcaseweuse
‘initiative’.Werefrainfrom‘project’toindicatethatmanyapproachesdon’thaveaformalor
temporalproject-character.
Who are the stakeholders in a landscape initiative?
Thereareusuallyseveralstakeholdersthathavetheirowninterestsinaparticularregion.They
(andonlythem,toavoidunnecessarycomplexity)shouldbebroughttothetableandplaya
roleinthedesignoftheinitiative,agreeontheissuesanddirectionsforsolutions.Itis
importanttohavebothaconvenerwiththelocallegitimacytoattracttherelevant
stakeholders,andafacilitatorwiththeskillstohelpdiverseplayersdiscoversynergyamong
oneanother.Thesefunctionsmayormaynotbeperformedbythesameorganization.
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What are the boundaries of a landscape?
Theboundariesofalandscapeatstakecanbedefinedbybio-physicalrules,likewatershedsor
specificecosystems,bysocio-culturalsystemsorbyregulatoryrules,likepolitical‘jurisdictions’.
Thefirstusuallydefinetheproblem(s)whilethejurisdictionalboundariestendtoincludethe
potentialfora(governmentsupported)solution.Sometimestheboundariesofaninitiative
needtoberedefinedtocometosolutions.
What are typical issues that could benefit from a landscape initiative?
Certificationorsinglepartyapproachesdonotalwaysaddressissuesthattranscendthe
boundariesofsupplychainsoranyindividualactorinalandscape.Suchissuesinclude
deforestation,watermanagement,biodiversitydecline,andcompetitionfornaturalresources,
aswellassomesocialissueslikethelackofalivingincome.Thesetypesofissuestypically
benefitfromamulti-stakeholder,landscapeapproachthatallowsformoreholisticand
inclusiveproblemsolvingsolutions.
Why and When Companies Decide to Collaborate
Theprimarybusinessdriversforengagementinlandscapeapproachesare:
•
Rawmaterialsupplyrisks,likedeforestationrelatedtosoyproduction
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•
•
•
•
Unmovableassetsatrisk,likebreweriesormines
Rawmaterialsupplyvolumes,duetodwindlingyields
Publicreputationalrisksaroundcompanybehavior(supplyoroperations),likelabor
conditionsatfarms
Marketdevelopment(newrawmaterialsand/ornewproducts),likespecialcocoafrom
Ecuador
Futureproofingthebusiness,likeinvesting,viacarboncreditsoroffsettingcarbon
emissions
Thereasonsthesegoalsmightmakebusinesssensearethatcompaniesmightneedto:
1. Workwithgovernmenttoimproveregulationormobilizeinvestment–forexample,in
thefaceofwatershortageorcommitmentsaboutdeforestation.(Alliancesofmultiple
organizationshavemoreinfluencethananyofthemseparately.)
2. CombineFunding–workingwithmultipleactorstowardsacommongoalcanmobilize
co-funding,particularlyfromthepublicsectoranddonoragencies.
3. Ensurelongtermproductivityandmanagescarceresources–whenwater,land,
energyandwasteabsorptioncapacitiesarelimited,keyplayerscanhavegreaterimpact
throughcollaboration.
4. Enhancestakeholderrelationshipstoretainlicensetooperate–especiallywhenlocal
communitiesdependuponasharedresourcelikewater,orwherebusinessesneedto
beperceivedasvaluedpartnersinruraldevelopment.
5. Verifyimpactstoenhancecustomerandstakeholderconfidence–withcertifications
andsupplyprogramsdrawingskepticismfromthepublicduetolimited(albeitgrowing)
evidenceofimpacts,landscapeprojectscanofferbothstoriesandverificationof
sustainabilityimpacts(althoughthisisstillnewterritorytotest).
6. Practicalityandcapacitybuildingforfarmersandsuppliers–whobenefitifthey
receiveonlyonesetofincentivesandmessagesfromalloftheircustomers,includingall
cropsintheirrotation,andwhocanbenefitfromcapacitybuildingforimproving
practicesorlandusedecisions.
7. Includesmallaswellaslargefarmers–insituationswhereonlylargerfarmerscan
affordcertification,alandscapescopecanincludeallproducersinasourcingregion,not
allofwhomwillbedirectsuppliers(e.g.smallholderfarmersinremoteareasofa
landscapewhomaytypicallybeexcludedasdirectsuppliers).
8. Protectembeddedassetsfrombeingstranded–whenefficiencyinnovationsat
manufacturingandbottlingfacilitiesaren’tsufficienttobelocallyvalued,andshifting
locationisnotanoption.
9. Collaborateacrosssectorsforoptimizingtrade-offsamongthem–forexample
includingpulp-and-paperalongwithfoodcompanieswhomayallbecompetingfor
waterresources.
10. Fulfillcorporatesustainabilitycommitments–becauseretailersandmanufacturing
brandswithcorporatecommitmentsneedtheirsupplychainpartnersandoftenothers
inthesameareastohelpdeliveronthosecommitments.
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11. Accessexpertiseandstakeholdernetworksonenvironmentalandsocialissueswhich
maynotexistinthecompanyorindustryassociations.
Nevertheless, the case for collaboration differs among and within businesses
Companies occupy different places in supply chains:
• Consumer-facingbrandshavefarfewerproductsthanretailandhencegreaterattention
toeachone,highexposuretoreputationalrisksandmarketopportunities,andusually
thehighestmarginsinthesupplychain.Thesebrandsaremostlikelytobeearlymovers.
• Extractivebusinessesandthosewithfixedassetshavethestrongestbusinesscaseto
collaborateinplacesaroundthoseassets.Forexample,miningcompaniesarerequired
bygovernmentstoplanforrestoringthelandscapeandmanagingtheirenvironmental
andsocialimpactaroundmines.Similarly,beveragecompanieswillfrequentlyinvestin
waterstewardshipnearbottlingplantsandbreweries.
• Tradersandin-countrysupplierstomulti-nationalsgenerallyhaveslimmarginsandfew
reputationaladvantagesfromlandscapecollaborations,unlesstheyhavefixedassetsto
protectfrombeingstranded,orunlesstheirbusinessmodelincludesdiverseingredients
fromthesameregion(likeOlam,forexample).
Within companies,peoplewithsustainabilityjobswillfrequentlyhavequitedifferent
performanceobjectivesthanpeopleinprocurementandotherfunctions.Eveninthose
companiesthatbonusprocurementormanufacturingmanagersforachievingsustainability
objectives,thecriteriaforpayoradvancementarefrequentlyoperationalizedasboxestotick
ratherthanimpactstoachieve.Wheneveryoneinthesupplychainbecomesaccountableto
impacts,landscapeapproachesriseinimportance.
Engagement versus alignment?
Landscapeapproachesaremostcommonandappropriateinregionswhere(normal)
governmentalregulationfailsorisweakforallkindofreasons.Ifotherstakeholdersareableto
fillthatvoidsatisfactorily,businessmayjustletthemdothejob.Dependingontheintersection
ofbusinessmaterialityandthelackofeffectiveaction,therearevariouslevelsofengagement,
fromfulltimeandfinancialsupporttoalignmentandpubliclyvoicedsupport.
What does a good landscape initiative require (at least)?
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Realvalueatstakeforacoresetofstakeholderorganizations(includinggovernment);
Personalleadershipfromindividualswithinthecoreorganizations;
An“honestbroker”convenerwhocanbridgedifferentinterests,aswellaspeoplewith
facilitationandprojectmanagementcapabilitieswhocangeneratebothalong-term
perspectiveandshort-termgains;
Cleargoals,anactionplanwithaccountability,andmethodstomeasureprogress;and
Patienceandanticipationofnewchallengeswhilestayingontrack.
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Entry Points
Entry points for businesses to landscape-level activities vary by region and commodity. The
following are examples of drivers for participation in regional collaborations, and these
examplesareillustrativeratherthancomprehensive:
Entry point: Changing micro-climate
Desiredoutcome: •
Existing •
mechanisms: •
Challenges: •
•
•
•
Benefitsof •
landscapeapproach:
Keyelements: •
Resilience to changing climate through adaption of farming
practices, selection of crops, and land use plans to adapt to
changingclimate
Trainingprograms,usuallyaimedatcashcrops
Climatechangemitigationandadaptationcompanygoals
Lack of awareness of specific, local risks and suitability of
specificfarmingsystemstothemicro-climateofthefuture
Few resources to support adaptiveness of whole farming
systems
Limitedriskexposuremappingcapability
Each company, and each commodity can only provide
fragmentedsolutions
Collaborations can access the best science, connect to
government to map whole landscapes, and target
interventionstospecificlocalneeds.
Science, multi-stakeholder dialogue, sophisticated land use
planning,targetedsupportfordifferentgroupsoffarmers
Entry point: Social conflict
Desiredoutcome: •
Existing •
mechanisms: •
•
Challenges: •
•
•
Benefitsof •
landscapeapproach:
Keyelements: •
Retainsociallicensetooperate
Stakeholderengagementthroughsocialplatforms
One-offengagementsanddialogues
Aiming for Free, Prior and Informed Consent (FPIC) from
vulnerablecommunities(particularlyindigenouspeoples)
Lack of regulatory framework or jurisdiction. For example,
insecurityoverlandtenureandaccessrights
Competitionforsameresources
Differentneedstouseland(i.e.industrialusevs.conservation)
Creatingsharedunderstandingandbuildingtrustamongallkey
actors, incl. communities, government representatives, NGOs
andbusiness.
Shareddecisionmaking,developmentofimprovedpolicies
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Entry point: Deforestation
Desired •
outcome:
Existing •
mechanisms:
•
Challenges: •
•
•
•
Benefitsof •
landscape
approach:
•
•
Key •
elements:
Nocontributiontodeforestationthroughcorporatesupplychain.
Commodity certification which are limited by commodity, i.e. different
standardsareinplaceforsoy,palm,beef,timberandmore
Corporatepoliciesonzerodeforestationandtransparentsupplychains
Multiple, often conflicting terms and approaches proliferate.
“Deforestation-free” may mean different things depending which
commodityisbeingsourced.
No clarity on how to effectively implement, measure and monitor
deforestation-relatedcommitments.
Hugegapbetweencorporatecommitmentsatgloballevelandrealitieson
theground.
Actual deforestation may continue despite commitments, for example:
whileacompanymayonlysourcecertifiedcommodities,theregionwhere
thatcommodityissourcedmaynotbe“deforestation-free”becauseother
landusescontinuetocontributetotheproblem.
Multi-stakeholder land use planning and dialogue can help mobilize
additional stakeholders for forest management, use and protection, as
well as mobilize investment in land use optimization on productive or
degradedland,reducingpressureonforests.
Landscapeinterventionscanhelpidentifythesetofactionstoimplement
beyond a single commodity stream to ensure deforestation does not
occurinanentiresupplyregion.
Itcanhelptoensurethatanyimplementedactionsdonotcauseadverse
effectsonotherlandusesoruserswithinthesameboundary.
Multi-stakeholder dialogue, shared definitions and understanding,
effectiveimplementationandmonitoring
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Entry point: Water risks
Desiredoutcome: •
Existing •
mechanisms: •
•
Challenges: •
•
•
Benefitsof •
landscapeapproach:
•
Keyelements: •
Secure water supply for production and operations and
mitigaterisksrelatedtofloods,droughtsandwaterquality.
Waterstewardshipstandards
Waterfoot-printing
Waterefficiencymanagement
Water efficiency in plants, fields and other operations often
notenoughtoensurelongtermsupply
Competition over water resources with multiple users (e.g.
othercompaniesorindustrialsectors,agriculture,communities
andmunicipalities)
Riskofwaterdisruption,increasedcostsforwater
Multi-stakeholder interventions at the watershed level can
help identify interventions; for example, improved policy and
regulation,upstreamrecharge,andbetterlanduse
Multiple company collaborations can help access funding and
motivategovernmentinterventiontoregulatewateruse
Multi-stakeholder dialogue, shared risk management, policy
development