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Making Sustainable Links: the well-being of NZ exports in a changing climate

Making Sustainable Links: the well-being of NZ exports in a changing climate. Cerasela Stancu & Ann Smith Talking and Walking Sustainability Conference, NZSSES February 21, 2007. Content. Setting the stage Trade-related issues Consumer expectations - impact on exporters

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Making Sustainable Links: the well-being of NZ exports in a changing climate

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  1. Making Sustainable Links:the well-being of NZ exports in a changing climate Cerasela Stancu & Ann Smith Talking and Walking Sustainability Conference, NZSSES February 21, 2007

  2. Content Setting the stage • Trade-related issues • Consumer expectations - impact on exporters • Supply chain as a de facto environmental trade barrier • Climate change-related consumer concerns: new trade barriers? Survey of NZ Food&Beverage sector • Scope of the survey • Key findings - environmental export requirements • Discussion Conclusion

  3. NZ and international trade • WTO framework - lowering barriers to trade • NZ Trade and Environment Framework 2001 • Win-win-win agendas • Environmental goods and services • Eco-labelling • Pursuing bilateral and regional FTAs • China, Malaysia and ASEAN under negotiation Uncertainty about the integration of environmental considerations into FTAs

  4. Trade-related issues and consumer expectations: impact on exporters • Sales of ethical products growing faster than conventional • Consumer concern/expectations can lead to restrictions to market access • Interest groups use consumer concerns to raise standards for products e.g. food miles • Commercial policies, more than trade policies, put environmental requirements on exporters

  5. Supply chain as a de facto environmental trade barrier • Private sector policies – account for the majority of environmental ‘voluntary’ requirements • Most targeted sectors: food, electrical and electronic equipment, textiles, timber, chemicals Key issues: lack of truly international standards or equivalence between standards; dynamic changes in certification requirements

  6. Consumer concern about climate change: new trade barrier? • Extreme events • Consumer action (fuel efficient cars and appliances, local food) Yet, consumer information still limited (embodied energy vs. emissions) • Government action • US state of Californian took to court 6 automobile makers • Climate border tax adjustment for products from countries with no emissions caps • Tesco’s new environmental initiative (carbon footprinting)

  7. Survey of NZ F&B sector Scope of the survey • Over $15 billion/year export revenue • employs 4.29% of NZ workforce • responsible for about 5% of NZ’s energy use and emissions • Over 300 F&B organisations contacted • 104 responses - 30% response rate • Goals of the survey: • Explore current environmental practices • Review environmental requirements in export markets • Identify sector’s perceptions about key sustainability challenges

  8. Survey of NZ F&B sector Key findings (1) • Assumption that the sector does not have an impact on the environment • Low concern about climate change and water management • 3 in 4 businesses have implemented at least one practical environmental measure • Only 3 in 5 businesses have joined a recognised NZ or overseas standard/eco-labelling scheme/code of practice

  9. Survey of NZ F&B sector Key findings (2) • Only 30% of businesses have procedures to ensure compliance with overseas environmental requirements • Many mandatory requirements are supply chain driven, combine food safety and traceability, health, environmental and labour conditions • Voluntary requirements become mandatory when they are a condition for market access i.e. FSC, MSC

  10. Survey of NZ F&B sector Key findings (3) • Exporters use personal research and customer information to seek information on better environmental practices • Lack of consensus on the “ Clean and Green” brand

  11. Discussion points • Exporters with no direct links to buyers lack access to environmental information • Environmental measures vs. environmental credentials/ production claims • Life cycle thinking to determine supply chain impacts • Low concern about climate change

  12. Conclusion • Environmental requirements are increasing mostly as a results of CSR agenda, consumer pressure, fear of climate change (peak oil). • Need to increase capacity of the export sector to take on practices not yet a condition for market access (EMS, carbon management, LCA based eco-labelling) • Increased need for the export sector to anticipate market trends and proactively employ best available practices (i.e. carbon management)

  13. The Grove Mill Story

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