3 rd Global Networking Conference on Resource Efficient and Cleaner Production

1. 3rd Global Networking Conference on Resource Efficient and Cleaner Production Didier BERGERET Senior Manager

2. A global industry network of retailers & manufacturers and their business partners • A global organisation with headquarters in Paris and offices in Tokyo and Washington • A unique platform to develop common positions on key strategic, operational and non-competitive issues affecting the consumer goods business • 400 members • 70 countries • 9.9 million employees • US$3.3 trillion in sales • Sustainable working and environmental conditions throughout global supply chains

3. Scope sub-contractor home-workers agents - local agents -global manu-facturer home-workers non-food and/or consumer supplier -local agents -global open market plantation grocery retailer / brand and/or produce farms open market co-operatives farms small-holders importers small-holders Source: ETI annual report 2002-2003

4. Scope How do retailers / brands guarantee fair labour conditions and decent environmental practices in their supply chains?

5. 42 other members Context – over 1000 codes... 8other members JMR Motorola 855 other members 69 other members Kimberly Clark Levis 14 other members 61 other members Ikea C&A Wal-Mart

6. The context & challenge Shared Supply Base All Consumer Goods Buying Companies Result Today Suppliers Agriculture | Industry • many initiatives and programmes • limited collaboration between companies and initiatives Social / Environmental requirements Gap Inc. Audit fatigue Social / Environmental requirements Dole Social / Environmental requirements HP | EICC Inefficiency Social / Environmental requirements Carrefour | ICS Social / Environmental requirements High cost Migros | BSCI Social / Environmental requirements Walmart >> limited progress in terms of sustainable remediation & capacity building • confusion in terms of requirements • focus on passing multiple audits

7. Governance and membership TASK FORCE ADVISORY BOARD

8. The GSCP approach goal: enable suppliers to continuously improve working & environmental conditions What is needed to achieve that? build Consensus on basic requirements and best existing practice facilitate Convergence& recognition of existing schemes Support Collaboration andimplementation of best practice for remediation & capacity building 1 2 3

9. The Reference tools • open source • based on existing international standards the GSCP Reference tools social & environment what how who • GSCP Reference Code (social) • GSCP ReferenceEnvironmentalRequirements • GSCP EnvironmentalImplementation Guidelines • GSCP Referencetools for Audit Process & Methodology (social) • GSCP Referencetools for Environmental Audit Process & Methodology • GSCP Referencetool for AuditingCompetence (social & environmental)

10. GSCP Scope • IN SCOPE • Develop best practices reference tools/standards • Facilitate convergence between brands / retailers and schemes. • Allow for mutual recognition of schemes • Encourage local networks/capacity building • Support government efforts to bring harmonisation of requirements to global supply chains • OUT OF SCOPE • Execute audits • Implementation • Deliver capacity building • Certification / Accreditation • Manage data

11. Sharedsustainability agenda • Growing integration by multinational companies of development and CSR objectives to their core business • Corporate efforts in developing countries produce successful development results, including employment opportunities, human/institutional capacity building and technology transfer (triple bottom line) • Similar challenges • Scale up = reduce the effort required per company to implement • Mainstream = embed drivers and incentives for implementation

12. Resources available Making Private Standards Work for You: A guide to private standards in the garments, footwear and furniture sectors SustainableValue Chain Development (agro-industries) Interactive, multi-stakeholder model for CSR management integration(aligned with ISO2600, GRI and UNGC)

13. UNIDO – GSCP Cooperation Overall Objectives • Develop capacities within clusters of suppliers (SMEs) to allow them to improve performance (triple bottom-line) and ability to comply with industryReference requirements (GSCP) • Enable a common understanding of continuous improvement • Foster market access for suppliers by integrating into global supply chains and ensuring productivity and sustainability. • Building Local capacity for upscaling and replication using a standardized Capacity Building and monitoring/reporting toolkit

14. Rationale: Work with the industry reference (GSCP) to: • Develop capacities within clusters of suppliers (SMEs) and local institutions on productivity and social/environmental sustainability • Prepare suppliers to comply with buyers’ requirements on social, ethical and environmental aspects (any company/code) • How? • By aligning UNIDO Capacity Building Toolkit (REAP/RECP) against the GSCP Reference tools in both social & environment fields • By using GSCP momentum & convening power to get buyers or group of buyers to engage their prospect or current suppliers through the process (as a means to access markets)

15. Existing Framework ------- ------- ------- REAP | RECP Methodology, tools & Training Package + Alignment with GSCP on Social & Environmental requirements + Capacity Building toolbox for Suppliers // = Network of trained counsellors / assessors (Indutry, Social/ENV) Industry expertise, local presence, capacity and linkages with local governments and PS

16. Roadmap • AlignUNIDO tools with GSCP Reference Requirements to build a full Capacity Building Package Global Roll-out Plan 4 Pilot Inception Pilot Implementation • Develop models to roll out implementation at global level. 2 3 Update and tailor the “Toolbox” • Design and carry out pilot implementation with members companies and their suppliers 1

17. UNIDO at a Glance • Transfer of know-how: upgrading of suppliers to increase access to new markets and improve the supply chain; • Bridge the gap between suppliers and buyers to create wealth, enhance trade and increase consumer protection; • Integration of the development dimension with capacity building of buyers & suppliers on quality/safety/sustainability/productivity • Public Goods/Open Source: making available a variety of methods and tools (‘UNIDO Toolbox’) to suit different development needs and industry sectors, combined with networks of local service providers

18. UNIDO Sustainable Supplier Development Programme • Result: enable clusters of suppliers in developing countries to: • gain access to profitable new market opportunities • establish long-lasting business linkages with buyers • generate new jobs and income opportunities • increase availability of sustainable and safe products

19. Overall Benefits Does not replace audits but can work at two levels with associated benefits Benefits for buyers Benefits for suppliers With Potential Suppliers With Current Suppliers Tailored training and capacity-building Tailored training and capacity-building » Qualification pre-audit Market Access Risk mitigation Productivity/efficiency Reduction of NCs Work on NCs Allows supply chain management » Autonomy Replicable More balanced relationship with buyers Scalable

20. “Short-list” of potential areas (countries/products) for full GSCP pilot

21. UNIDO Deputy to the Director General TaizoNishikawa • “Industry plays a paramount role in achieving sustainable development and business partnerships are indispensable.” • “The GSCP is one of the most influential groups of private sector manufacturers and retailers that address social and environmental sustainability of their supply chains; we therefore attach great importance to expanding our cooperation with the GSCP and are committed to making full use of our resources to substantiate this important partnership”.

22. Thank you! Questions? » Didier BERGERET d.bergeret@theconsumergoodsforum.com www.gscpnet.com

23. BUSINESS MODEL