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SUSTAINABABLESOURCINGACTIVITIESFORAGRICULTURALPRODUCTSINCANADA KEYFEATURES,COMMONALITIESANDDIFFERENCES

FOR: AgriculturalResearchandExtensionCouncilofAlberta

BY: NathanPelletier GlobalEcologicEnvironmentalConsultingandManagement ServicesLtd.

STARTDATE: January,2016DELIVERYDATE: March31,2016

Permanentaddress: 9710ColdstreamCreekRoad Coldstream,BritishColumbia,Canada tel2505492624 emailnathanpelletier@globalecologic.com www.globalecologic.com

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LiabilityStatement

Thisreportwasdevelopedbasedoninformationandmethodsconsideredtobecredible.Usersofthedataandinformationcontainedhereinaresolelyresponsible.GlobalEcologicLtd.isnotliableforanylossordamagearisingfromuseoftheinformationcontainedinthisreport.

FundingandDisclaimer

ThereportwaspreparedasinformationfortheAgriculturalResearchandExtensionCouncilofAlberta(ARECA).TheviewsandopinionsexpressedinthisreportarenotnecessarilythoseofARECA.

SuggestedCitationFormat

Pelletier,Nathan.2016.SustainableSourcingProgramsinCanada.ProducedfortheAgriculturalResearchandExtensionCouncilofAlbertabyGlobalEcologicEnvironmentalConsultingandManagementServices,Canada.

AboutNathanPelletierandGlobalEcologic

NathanPelletier(GlobalEcologicEnvironmentalConsultingandManagementServices)workscloselywithclientstobuildanunderstandingofsupplychainenvironmentalandsocialsustainabilityperformanceandmitigationopportunities.Theseincludeapplicationofenvironmentalandsociallifecycleassessment,environmentalfootprinting,supply-chaingreenhousegasaccountingandothermodelingapproaches,aswellasthesociallicense/marketaccessdimensionsofsustainabilitymanagement.Heisdedicatedtodeliveringhigh-quality,cost-effectiveconsultingservicestomeetthedemandsofcitizens,firmsandorganizationscommittedtofurtheringsustainabilityobjectives.Formoreinformation,seeAppendixB.

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ExecutiveSummary

Themarketplaceforagriculturalproductsisincreasinglyinfluencedbyactivitiesaimedatmeasuringandcommunicatinginformationwithrespecttothesustainabilityimplicationsofbothspecificfoodproductsandproductionpractices.Theseinitiativesgenerallyconsidertheentirevaluechainbutfocus,inparticular,onthefarm-levelproductionofagriculturalcommodities,wherethemajorityofresourceuseandpotentialimpactstendtobeconcentrated.Initiativeswhichfallunderthebroadcategoryof“responsible”or“sustainable”sourcinghaveproliferatedinrecentyears.

InCanada,severalindustry-led,multi-stakeholderinitiativestodefinethecriteria,indicatorsandprotocolstosupportsustainablesourcingforparticularcommoditygroupsarecurrentlyunderdevelopment.Inadditiontothese,numerouscompanieshosttheirown,in-housesustainablesourcingprograms,andavarietyofinternationalinitiativeswhichcouldpotentiallybeappliedtosustainablesourcinginCanadaalsoexist.

ThisstudyundertooktoscreensustainablesourcinginitiativesfortheirpotentialapplicabilityforAlbertafarmers(currentorfuture)inordertoidentifyandevaluateasubsetofthemostrelevantamongtheseschemes.Thissubsetwassubjectedtomoredetailedanalysisinordertocharacterizekeyfeatures,commonalitiesanddifferencesamongtheschemes.

ThescreeningexerciseandsubsequentanalysisprovidedstrongindicationthatthescaleofactualimplementationofsustainablesourcingactivitiesthatareofrelevanceformajoragriculturalcommoditiesinAlbertaiscurrentlyverylimited.Withfewexceptions,discussionswithrepresentativesofindustryassociations,companies,andotherstakeholderssuggestedthatveryfewfarmersarepresentlybeingaskedbyvaluechainpartnerstoparticipateinanddemonstratecompliancewiththerequirementsofsustainablesourcingactivities.NotableexceptionsincludepotatogrowersparticipatinginthePotatoSustainabilityInitiative,canolagrowersparticipatinginADM’sSustainableGrowersProgram,andlivestockoperatorssubjecttoanimalwelfareauditsbyprocessors,foodserviceproviders,retailersand/orrestaurants.ThecurrentlackofimplementationofsustainablesourcingactivitiesspecifictotheenvironmentalperformanceofmostmajorAlbertaagriculturalcommoditieslikelyreflects,inpart,thetacticalapproachofmanybusinesses,whotendtofocustheirimmediateeffortsonmorecontroversialproductssuchasseafood,palmoil,andBraziliansoy,oronissuesraisedbytheircustomerssuchasanimalwelfareandanti-bioticuse.

OnenotablechallengefortheimplementationofsustainablesourcingrequirementsinCanadaisthatmostbulkcommoditiesarecommingledandmarketedas“Canadian.”Traceabilitytospecificfarmsorevenprovincesisverydifficultinthesecircumstances.Theuseofmassbalanceapproachesbyprocessors,whooperateatanimportantnexuspointbetweenproducersandtheirdownstreamcustomersandwhoarehencewell-positionedtomediatethesustainablesourcingrequirementsof

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differentcustomers,providesoneoptionforcommunicatingthedegreeofimplementationofrequiredpracticesalongthesupplychain.Thechallengeofincentivizingproducersanddiscouragingfree-riding,however,remains.

Beyondgeneralprinciplesregardingpromotingmoresustainableagriculturalpractices,theevaluatedschemeswerefoundtobequiteheterogeneousinbothbreadthanddepth.Someofthemorematureschemes–forexample,Unilever’sSustainableAgricultureCodeandtheInternationalSustainabilityandCarbonCertificationsystem–providedetailedrequirementsandsupportingguidance.Manyoftheinitiatives,however,onlydescribegeneralobjectivesandrequirements.Inthecaseofthelatterschemes,implementationatthefarmlevelwilllikelybechallenging.

Themostprevalenttypeofsustainablesourcingschemeisthe“compliancechecklist”approach,wherebyfarmersarerequiredtodemonstratecompliancewithasetofrequiredoutcomesorbestpractices.Prescriptive,quantitativeperformancetargetsarenotcommonlyemployed,althoughsomeschemesdoaskforgoalsettingwithrespecttoreducing,forexample,greenhousegasemissions,waste,andwateruse.Otherkindsofschemessuchascalculatorsandcertificationprogramsdoexistbutarelesscommon.Third-partytoolssuchascalculatorsdevelopedthroughmulti-stakeholderinitiativesmay,however,beusedbysomecompaniesinsupportofspecificsustainablesourcingactivities.Forexample,GeneralMillsiscurrentlyusingtheCanadianFieldprintCalculatorforpilotprojectsinManitobaandSaskatchewan.Onecommonthreadtyingmosttheschemestogetheristheemphasisondemonstrationofcontinuousimprovementovertime.

Alargenumberofdifferentcriteriaandindicatorsforvariousaspectsofenvironmentalsustainabilityareemployedbytheschemesconsidered.Animalwelfareandsocio-economiccriteriaarealsocommon,althoughthesewerenotthesubjectofdetailedanalysisinthisstudy.Thereis,however,asmallersubsetofcriteriathatiscommonacrossmostoftheschemes.Theseare:WaterManagement;EnergyUse/Efficiency;Climate;SoilManagement;BiodiversityConservation/Enhancement;WasteManagement;CropProtectionManagement;andNutrientManagement.Atthemorespecificlevelofindicatorsusedtoassessperformanceforthesecriteria,thesetsemployedbyeachschemetypicallyvary.Alsovariableisthedegreeofspecificityandguidancetosupportdemonstratingcompliancewiththecriteriaandindicators.Moreover,someschemesrefertocriteriaonly,withoutdescribingsupportingindicators.

Requirementsandpracticerelatedtoverification/auditalsodifferconsiderably.Asmallnumberofschemesprovideadetaileddescriptionofverification/auditrequirements.Othersstatesimplythatsuppliersmustdemonstratecompliancewiththeirrequirements,includingfortheupstreamsupplychain,andthataudit/verificationmaybeundertaken.Forsomeschemes,noinformationreferringtoverification/auditactivitieswasidentified.

Takentogether,theseobservationssuggestconsiderablescopeformaturationformostoftheinitiativesevaluated,aswellasthecleardesirabilityofharmonizationamonginitiatives.Ingeneral,thefeasibility

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andefficacyofsustainablesourcingwillbestronglyinfluencedbytheextenttowhichfarmersareenabledtoparticipate.Thisrequiresclarityandconsistencyinrequirements,verification/auditmechanisms,andavoidanceofduplicationandoverburdenresultingfromfarmershavingtograpplewithmultiple,heterogeneousschemes.

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ContentsExecutiveSummary......................................................................................................................................3

ListofFigures...............................................................................................................................................8

ListofTables.................................................................................................................................................9

Introduction...............................................................................................................................................10

Methods.....................................................................................................................................................12

IdentifyingApplicableSustainableSourcingSchemes...........................................................................12

CharacterizingCommonalitiesandDifferencebetweentheSelectedSustainableSourcingSchemes.14

Characterizationbytype....................................................................................................................14

Characterizationofcriteriaandindicatorsemployed........................................................................14

Characterizationofverification/auditrequirements.........................................................................14

Summaryofcommonalitiesanddifferences......................................................................................14

Evaluationoftheaccessibilityoftheselectedsustainablesourcingschemes...................................15

ResultsandDiscussion...............................................................................................................................18

SummaryoftheSustainableSourcingSchemesConsidered.................................................................20

Multi-StakeholderInitiatives..............................................................................................................21

PrivateCompanyInitiatives................................................................................................................37

CharacterizationofCommonalitiesandDifferencesbetweentheSelectedSustainableSourcingSchemes.................................................................................................................................................61

CharacterizationbySchemeType......................................................................................................61

CriteriaandIndicatorsEmployedbytheSustainableSourcingSchemes...........................................62

Audit/VerificationRequirementsoftheSustainableSourcingSchemes...........................................67

Assessmentresultsforthe“accessibility”oftheselectedsustainablesourcingschemes................70

SummaryofSomeKeyCommonalitiesandDifferencesamongtheSelectedSchemes........................71

Conclusions................................................................................................................................................76

AppendixA.DetailedEvaluationResultsfortheAccessibilityoftheProgram/Activity............................78

CanadianFieldprintCalculator...............................................................................................................78

SustainableAgricultureInitiativeFarmSustainabilityAssessment2.0..................................................79

ISCC/ISCCPlus........................................................................................................................................80

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PotatoSustainabilityInitiative...............................................................................................................81

NestleSupplierCodeandResponsibleSourcingGuideline....................................................................82

UnileverSustainableAgricultureCode...................................................................................................83

MolsonCoorsSupplierCodeandAgriculturalBrewingIngredientsPolicy............................................84

KelloggsSupplierCode...........................................................................................................................85

SyscoSupplierCodeandRelatedMeasures..........................................................................................86

WalmartSustainabilityIndexandTheSustainabilityConsortium.........................................................87

PepsicoSupplierCodeandSustainableFarmingInitiative.....................................................................88

AppendixB.AboutNathanPelletierandGlobalEcologic..........................................................................90

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ListofFigures

Figure1."Accessibility"scores(rankedfromhighesttolowest)forasubsetofeachofthereviewedsustainablesourcingschemes....................................................................................................................71

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ListofTables

Table1.Matrixofcriteriaappliedforevaluatingtheselectedsustainablesourcingschemesforaccessibility................................................................................................................................................16Table2.Sustainabilityschemesselectedfordetailedassessment............................................................20Table3.Characterizationofschemesbytype............................................................................................62Table4.Criteriaemployedbytheselectedschemes.................................................................................65Table5.Characterizationofschemeaudit/verificationrequirements......................................................68Table6.Summaryofkeycommonalitiesanddifferencesamongtheselectedschemes..........................74Table7.SustainablesourcingprogramsthatrefertopriorityAlbertacommodities.................................76

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Introduction

Sustainability,andsustainablefoodsystemsinparticular,aretopicsofincreasingimportanceinsocietyatlarge.Thisgrowingattentiontotheroleoffoodproductionasakeycontributortosustainabilityoutcomesreflectstheverylargecontributionmadebyfoodsystemsinaggregatetoourcollectiveresourcedemands,aswellasahostofbothenvironmentalimpactsandsocio-economiccostsandbenefitsthataccrueacrossecosystemsandstakeholdergroups.Understanding,measuring,andmanagingthesustainabilityofparticularfoodproductsandproductiontechnologiesisthereforeanareaofintenseresearchandimplementationactivities.

Ofcentralimportancetothefieldoffoodsystemsustainabilitymeasurementandmanagementislifecyclethinking–whichis,perhaps,themostimportancenewparadigmintheartandpracticeofeffectivemanagement.Lifecyclethinkingrequiresthatmanagersseektounderstandandinfluenceactivitiesandinteractionsacrosstheentirevaluechaininordertopromoteimprovedsustainabilityoutcomes.Importantly,thisapproachtosustainabilitymanagementfacilitatesidentificationofpotentialtrade-offsthatmayoccurasaresultofmanagementdecisions–whetheratdifferentstagesalongthevaluechainorbetweenvarioussustainabilityobjectives.Essentialtoeffectivelifecycle-basedsustainabilitymanagementisengagementandcollaborationwithvaluechainpartners,whosecooperationisessentialinleveragingimprovements.

Beginningintheearly2000’slargefoodcompaniessuchasUnileverandDanonebegantoconvenemulti-stakeholdergroupsinordertodevelopschemestosupportsustainablesourcingbyprocessors,foodserviceproviders,restaurants,andothercustomersoffoodproducts.Theseinitiativesreflectedagrowingrecognitionamongleadingcompaniesofincreasingsocietalexpectationsregardingcorporatesocialresponsibilityaswellasthecompetitiveadvantagethatwouldultimatelybeconferredtothoseattheleadingedgeofsustainabilitymanagement.Sincethemajorityofemergingresearchsuggestedthatthelargestshareofsupplychainsustainabilityimpactsforfoodproductstendedtobeconcentratedatthelevelofrawmaterialproduction,suchschemesencompassedtheentiresupplychain.

ThemomentumbehindsustainablesourcingactivitiesandprogramsinthefoodsystemwasfurtherbolsteredbystrongsignalsfromEuropeanregulatorsregardingtheeventuallegislationofcorporatesocialresponsibility.Indeed,avarietyofinitiativeshavebeenundertakenorsupportedbytheEuropeanCommissionwithrespecttodevelopingstandardstoenablealevelplayingfieldinfoodsystemsustainabilityinitiativesassociatedwithpolicydevelopments.Theseinitiativeshaveunderscoredthatsustainabilityasthebottomlineofbusinessactivityhasnowbecomea“when”ratherthan“if”question.

Sincethesefirstdevelopmentswithrespecttosustainablesourcingactivitiesinthefoodsupplychain,similareffortsbybothmulti-stakeholdergroupsandindividualcompanieshaveproliferated.Atpresent,foodsystemstakeholders,includingfarmers,faceabewilderingarrayofactualoremerging

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expectationsandrequirementsforparticipationinfoodsupplychainsustainabilityprograms.Theseprograms,whichmayincludeenvironmental,animalwelfare,andsocio-economicsustainabilitycriteria,arehighlydiverse.Thesheernumberofsuchprograms,aswellasconsiderableinconsistencybetweenthemwithrespecttorequirements,indicators,andrigorisclearlyinefficientbothforfarmersandothervaluechainactors.Asaresult,harmonizationeffortstobringgreaterconsistencyandrigortosucheffortshavealsobecomequiteimportant.Harmonizationeffortsarelargelybeingledbyindustryassociationsinthefoodsystem,incooperationwithavarietyofstakeholdersincludingfarmers.Animportantfeatureofanysuchinitiativeis,whereverpossible,tobuildonexistingprogramsandsystemsthatarealreadyinplace,andwhicharefamiliartostakeholders.

TheEnvironmentalFarmPlan(EFP)programisawhole-farm,self-assessmenttoolthatenablesfarmerstoidentityenvironmentalrisksassociationswiththeiractivities,andtodevelopriskreductionplans.EFPhasbeenoperationalinCanadasinceitsgenesisinOntarioin1993.AllprovincesalongwiththeYukonTerritoryhavesinceimplementedtheirrespectiveversionsoftheEFPprogram.Atpresent,roughly35%ofproducersaccountingfor50%oftheagriculturallandbaseinCanadahavecompletedanEFP.AlthoughEFPprogramsdifferbyprovinceincertainrespects,thereisnonethelessconsiderablesimilaritybetweenthem.Anational-levelinitiativeiscurrentlyunderwaytoexploreopportunitiesforharmonization.Onekeypurposeofaharmonized,nationalEFPistoensurethatprovincial/territorialEFPscover,totheextentpossible,thecommonrequirementsofvarioussustainablesourcingprograms.

Towardsthisend,theAgriculturalResearchandExtensionCouncilofAlberta(ARECA),whichmanagestheAlbertaEFPprogram,hasbeguntoexplorethepossibleroleofamodifiedEFPprograminenablingfarmerswithanEFPtosatisfytheenvironmentalcomponentofcurrentoremergingsustainablesourcingprograms.Aspartofthisprocess,ARECAcommissionedGlobalEcologicLtd.toundertakeastudyofsustainablesourcingprogramsinCanadawhichmayproverelevantforAlbertafarmers.Specifically,thestudyistoevaluatekeycommonalitiesanddifferencesbetweenthemostrelevantofsuchprograms.AnenvisionedsecondstepofthisresearchistoevaluatetheextenttowhichtheEFPcurrentlyenablesfarmerstosatisfythecommonrequirementsoftheseprograms,aswellaswhatmodificationstotheprogrammightbeentertainedsuchthatthemajorityshareofrequirementscanbesatisfied.Thecurrentreportdescribestherationale,methodsandresultsoftheinitialphaseofthisresearch.

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Methods

IdentifyingApplicableSustainableSourcingSchemes

Thereisawidevarietyofprogramsandactivitiesthataredesignedfor,ormaybeappliedinthecontextof,sustainablesourcingofagriculturalproducts.Theseprogramsmayaddresssingleormultipledimensionsofsustainability(i.e.environmental,social,economic,animalwelfare,foodqualityandsafety,etc.).Theymaybemulti-stakeholderinitiatives,industryprograms,privatecompany,orgovernment-sponsoredactivities.Theymayalsobeapplicableinspecificgeographiesorglobally,andforspecificfoodproductsorforagriculturalrawmaterialsingeneral.

Severalreportsareavailabledescribingandevaluatingvariousamongtheseschemes.Theseinclude,forexample:

o Sustainabilityindicators,toolsandreportingsystemsforagri-foodproducts.PreparedbyGlobalEcologicEnvironmentalConsultingandManagementServicesLtd.forAlbertaAgricultureandRuralDevelopment.2015.

o Sustainabilityevaluationtechniques.PreparedforEnvironmentalStewardshipDivision,AlbertaAgricultureandRuralDevelopmentbyCampbellHandKKoehler-Munroe.2013.

o Examinationofgovernment&non-governmentalsustainabilityrequirementsforagricultureproducts.PreparedforAgricultureandAgri-FoodCanadabyWaterfallAdvisorsGroupLtd.2012

o EvaluationofAgri-foodSustainabilityCertificationSystems.PreparedbyGeorgeMorrisCentreforOntarioFruitandVegetableGrowersAssociation.

Internetsearchesorperusalofmaterialsavailableinacademicdatabasesfurtherrevealadiversityofadditionalinitiatives.

Afirstnecessarystepforthisstudywastoidentifywhichamongtheseschemesmaybemostrelevant/applicableforCanadianfarmersingeneral,andforAlbertafarmersmorespecifically.Followinganinitialscanoftheaboveresourcesinordertoidentifysustainablesourcingschemesofpotentialrelevance,thefollowingcriteriawereappliedinordertoarriveatashort-listofschemestobeconsidered:

• theschemerefersspecificallyorgenerallytoapriorityAlbertaagriculturalcommodity,asdeterminedbasedon

o agriculturalareadevotedtoproductionofthecommodityinAlberta(including,forlivestock,feedinputproduction),specifically

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§ wheat§ canola§ tamehay§ barley§ peas§ oats§ livestock(beef,pork,chicken,eggs,milk)

o aspecificrequestbyARECAthatthecommoditybeconsideredinthestudy

§ sugarbeets§ potatoes

• apparentrelevanceofthescheme,asindicatedbytelephoneandemailcorrespondencewith

representativesofindustryassociationsinordertodeterminetheperceivedrelevanceofparticularschemesforeachcommoditygroup

• apparentrelevanceoftheschemeasindicatedbytelephoneandemailcorrespondencewithschemeownersinordertodeterminetheperceivedimportanceoftheschemeforCanadianfarmersingeneralandforAlbertafarmersinparticular

• apparentscaleofimplementationofthescheme,asindicatedbypublicallyavailablereportsregardinginstancesofschemeimplementation

• inthecaseofprivatecompanyschemes,bothsizeandCanadianpresenceofthecompany• inthecaseofprivatecompanyschemes,indicationbyacompanyrepresentative(intelephone

oremailcorrespondence)orinpublicallyavailableliteraturepublishedbythecompanythattheschemeisbeingormaybeimplementedinCanadagenerallyorinAlbertaspecifically

• quantityandqualityofpubliclyavailableinformationdescribingthescheme

Effortswerealsomadetoselectacross-sectionofschemesrepresentingtheactivitiesofdifferentfoodsystemactors,includingprocessors,retailers,foodserviceproviders,andindustrygroups.Insomecases,thismeanttheinclusionofschemesforwhichlimitedinformationwasavailable,orwithlimitedcurrentattentiontoAlberta-relevantcommodities.

Onceashort-listofschemestobeconsideredwasidentified,asummarydescriptionofeachprogram/activitywasdevelopedbasedonpublicallyavailableinformationandadditionalinformationobtainedviatelephoneand/oremailcorrespondencewithschemeownersorstakeholders.

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CharacterizingCommonalitiesandDifferencebetweentheSelectedSustainable

SourcingSchemes

Characterizationbytype

Inordertofacilitateevaluationoftheselectedsustainablesourcingschemes,theywerefirstcharacterizedbytype.Theclassificationsemployedwere:

• Calculators(on-lineordownloadabletoolswhoseprimarypurposeistoallowdirectcalculationofthesustainabilityperformanceofagri-foodproductionorproducts)

• Certificationprograms(requiringthird-partyverificationofsustainabilityperformanceagainstapublicallyavailablestandard)

• Checklistcomplianceprograms(sustainablesourcingprogramsthatapplychecklistswithrespecttoasubsetofsustainabilityindicatorsorbestpracticesandrequireeitherselforthird-partyassessment)

• Other

Characterizationofcriteriaandindicatorsemployed

Thespecificcriteriaandindicatorsemployedforeachprogramwereidentified.Wherecriteriaandindicatorsreferringtoacommonthemewereidentified,theywereassignedunderacommonheading(forexample,indicatorsrelatedtocropprotectionproductapplication,handling,management,etc.wereassignedunderthecriteria“cropprotectionmanagement”(specificdetailsregardingcriteriaandindicatorsareprovidedinthesummarydescriptionforeachsustainablesourcingscheme).Frequencyofuseofeachcriterionwasalsoassessedinordertodeterminetheapparentcomparativerelevanceofeach.

Characterizationofverification/auditrequirements

Sustainablesourcingschemesmayormaynotbesupportedbyverification/auditrequirements.Thoseschemesinvolvingverification/auditwereidentified.

Summaryofcommonalitiesanddifferences

Inordertosummarizekeycommonalitiesanddifferencesbetweentheshortlistedsustainablesourcingschemes,theschemeswerecomparedintermsof:

o program/activitytype

o operator(i.e.governmentvoluntary,governmentmandatory,multi-lateral,private)

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o stakeholderrepresentation(i.e.stakeholderswereinvolvedindevelopmentofthescheme)

o singleormulti-criteria

o verification/auditrequirements

o emphasisoncontinuousimprovement

o Alberta-relevantsector(s)/commoditygroup(s)offocus

EvaluationoftheaccessibilityoftheselectedsustainablesourcingschemesAsanadditionalsteptobetterresolvekeycommonalitiesanddifferencesbetweentheselectedschemes,asemi-quantitativeanalysiswasundertakentodeterminetheirgeneralaccessibilityforAlbertafarmers.AccessibilityreferstothecomparativeeasewithwhichAlbertafarmersmightsatisfytherequirementsofeachprogram/activity.

Anassessmentmatrixwasdevelopedemployingavarietyofcriteriaforaccessibility.Performancewasassessedusinga“stop-light”system,wherebyaprogram/activitywasscoredforeachsub-criterionbasedontheextenttowhichitsatisfiedthecriterion(i.e.redfor“doesnotsatisfythesub-criterion”,yellowfor“somewhatsatisfiesthesub-criterion”,andgreenfor“satisfiesthesub-criterion.”A“notapplicable”assignmentwaspossiblewheresub-criteriawerenotrelevantfortheassessmentofspecificschemes.Anotessectionwasalsoincludedforeachcriterion.

Oncescoreswereassignedforallsub-criteria,weightedaveragescoresweresubsequentlycalculatedforoverallaccessibility.Here,weightsof0,1,and2wereassignedtored,yellowandgreenratings,respectively.Theoverallscoreforeachprogram/activitywascalculatedbydividingthesumofthesub-criteriascoresbythetotalpossiblescore(i.e.numberofcriteriaforwhichagreenratingcouldhavebeenappliedmultipliedbytwo,notincludingsub-criteriawherea“notapplicable”ratinghadbeenapplied).Thisallowedrankingtheschemesbasedontheirscoresforaccessibility.

ACCESSIBILITY

EvaluationCriteria

Thescheme...

(1)providesclearinformationastoitspurposeandapplicability

(2)providesclearguidancedocumentsinsupportofitsimplementation

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describesthesub-criteriaapplied.

Table1.Matrixofcriteriaappliedforevaluatingtheselectedsustainablesourcingschemesforaccessibility.

(3)isaccessibletoanon-expertaudience

(4)requiresdatathatarereasonablyaccessible

(5)hassupportingtools/softwareorothermaterialsthatfacilitateitsimplementation

(6)doesnothavehighimplementationcosts

(7)hasclearverification/auditproceduresandrequirements

Totals

WeightedAccessibilityScore

ACCESSIBILITY

EvaluationCriteria

Thescheme...

(1)providesclearinformationastoitspurposeandapplicability

(2)providesclearguidancedocumentsinsupportofitsimplementation

(3)isaccessibletoanon-expertaudience

(4)requiresdatathatarereasonablyaccessible

(5)hassupportingtools/softwareorothermaterialsthatfacilitateitsimplementation

(6)doesnothavehighimplementationcosts

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(7)hasclearverification/auditproceduresandrequirements

Totals

WeightedAccessibilityScore

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ResultsandDiscussion

AccordingtotheInternationalChamberofCommerce,responsiblesourcingrefersto“avoluntarycommitmentbycompaniestotakeintoaccountsocialandenvironmentalconsiderationswhenmanagingtheirrelationshipswithsuppliers.”Theterm“responsiblesourcing”isusedinterchangeablywiththeterm“sustainablesourcing.”Theliteratureandwebreviewrevealedwidespreaduseoftheseterms,inparticularintheprivatesector.Forexample,aGooglesearchfor“responsiblesourcing”generatesoverthreehundredthousandhits,whileasearchfor“sustainablesourcing”generatesclosetotwohundredthousandhits.Inlightoftherelativelyshorthistoryofcorporatesocialresponsibilityreportingandassociatedinitiativesasmainstreambusinessactivities,thedegreeofsaturationoftheseconceptsintothecorporatelexiconis,indeed,remarkable.Thisiscertainlyevincedinthefoodsector,wherefewcompaniesthatmightbeclassifiedaslargeandsuccessfulenterpriseshostwebsitesthataredevoidofreferencestoresponsibleorsustainablesourcing.

Thatsaid,thepreliminaryscreeningofsustainablesourcingactivitiesforfoodproductsthatmaybeofrelevanceinAlberta(orinCanadamoregenerally),aswellasthesubsequent,moredetailedanalysisofasubsetofselectedschemessuggestedthatthebreadthofattentiontosustainablesourcingisnotyetmatchedindepth.ApreliminaryindicationofthisgeneralobservationwasprovidedviatelephoneinterviewswithspokespersonsofindustryassociationsrepresentingthevariousAlbertaagriculturalcommoditiesthatwereprioritizedforconsiderationinthisanalysis.Inparticular,whenqueriedastotheextentthattheirrespectiveconstituentsarecurrentlyactivelyengagedinsatisfyingthesustainablesourcingrequirementsofcustomers,thereplywasalmostunanimousinconsistency–theyarenot.Besidesafewnotableexceptions(forexample,farmersandprocessorsusingISCCcertificationtogainaccesstoEUbiofuelmarkets,potatogrowerscommunicatingtheirsustainabilityassessmentresultstotheircustomersthroughthePotatoSustainabilityInitiative’son-lineplatform,orUnilever’simplementationoftheSustainableAgricultureCodeviatheGreenlightssoftwaresystem)itwouldappearthatsustainablesourcing(atleastforthecommoditycategoriesoffocusforthisstudy)largelyremainsattheconceptuallevelintheCanadianagri-foodsystem.Forcertainothercommoditiesthatareoutsideofthescopeofthecurrentanalysis,however,–forexamplefisheriesandaquacultureproducts–sustainablesourcingprogramshavealreadybeeninplaceandimplementedbyacross-sectionofstakeholdersforquitesometime.Thisissimilarlytrueforcommoditiessuchaspalmoil,cocoa,coffeeandsoy,asaresultofconcernsregardingproductionconditionsandimpactsfortheseproductselsewhereintheworld.Indeed,attentiontosustainabilityissuesrelatedtotheselatterandsimilarproductcategoriesinternationallyprovidedmuchoftheoriginalimpetusforthedevelopmentofthesustainablesourcingmovement.

AnotherimportantexceptiontothisgeneralobservationofthecurrentlackofimplementationofsustainablesourcingprogramsinCanadathatdoapplytosomeoftheAlbertacommoditiesofconcernrelatestocurrentapplicationoffoodsafety/qualityandanimalwelfarecriteriainsourcingactivitiesforlivestockproducts.Certainly,theseissuescontributetothemuchbroadersuiteofcriteriathatultimatelymustbeconsideredincomprehensivesustainabilityassessmentsforfoodproducts.With

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respecttoenvironmentalsustainabilityconcernshowever,andthesubsetofcommoditieshereconsidered,theobservationofinactivitygenerallyholdstrue.

Asecondindicationoftheapparentabsenceofwidespreadimplementationofsustainablesourcingrequirementsforthecommoditiesconsideredwasprovidedbysomeofthecompanieswhosein-housesustainablesourcingprogramswereconsideredinthisanalysis.Ingeneral,thereseemedtobeareticenceamongthemajorityofthesecompanies–whetherprocessors,foodserviceproviders,restaurants,orretailers-todiscusstheirrespectivesustainablesourcingactivities.Aspartoftheresearchundertakentoevaluatetheshort-listedschemes,effortsweremadetocontacttheschemeownersbybothtelephoneandemail.Theseattempts(inmanycasesrepeatedseveraltimes)includedabriefoverviewofthepurposeofthecurrentstudyandanexpressionofinterestindiscussingthespecificcompany’scurrentorenvisionedsustainablesourcingactivitiesthatmightbeofrelevance.Aminorityshareoftheschemeownerswhowerecontactedrepliedtoeitherinitialorfollow-upqueries–despitethatalloftheschemesdescribedonthecompanywebsitesdorefereithergenerallyorspecificallytoatleastsomeoftheagriculturalcommoditiesconsideredinthisanalysis.

Asmallersubsetofthecompaniesthatwerecontacteddidagreetodiscusstheiractivities.Severalinterestinginsightsemergedfromthesediscussions.Firstwasthat,forcompanieswithinternationalpresence,thesustainablesourcingactivitiesoftheiroperationsintheUSand/orEuropetendtobemoreadvancedthanarethosefortheCanadianoperations.Thislikelyreflectsseveralfactors,amongthemthat(1)companiesheadquarteredelsewherearelikelytofirstdevelopandtrialsustainablesourcinginitiativesintheirheadquartercountry;(2)companiesbasedinEuropefaceabusinessenvironmentwheresustainablesourcingactivitiesachievedwidespreadimplementationearlierthaninNorthAmerica(spurredonbothbyearlyadopterssuchasfoodindustrygiantsUnileverandDanoneaswellasbymovesbytheEuropeanCommissionand/orspecificcountriestolegislatecorporatesocialresponsibility-relatedactivities);and(3)thegenerallyfavourablereputationoftheCanadianagriculturesectorwithrespecttoenvironmentalperformance.SeveralintervieweesalsosuggestedthattheCanadianbranchesoftheirrespectivecompaniesarewaitingtolearnfromtheimplementationofthesustainablesourcingactivitiesoftheUSbranchespriortoimplementationinCanada.Morethanonecompanyspokesperson–despitethepresenceofanon-trivialvolumeofmaterialdescribingtheimportanceandfociofsustainablesourcingontheircompany’swebsite–indicatedthattheircompanyisnot,infact,currentlyimplementinganysustainablesourcingactivities.Oneintervieweerepresentingamajorsuppliertoalargeretailerdescribedthatthestaffresponsibleforsustainablesourcingforthatretailerhadbeenrelocatedtothecompany’sUSheadquarters–effectivelyputtingahalttoprogressintheretailer’ssustainablesourcingactivitiesinCanada.

Itshouldbenoted,however,thatoutsideofprivatecompanyinitiatives,anumberofimportant,multi-stakeholder,industry-levelinitiativestosupportsustainablesourcingactivitiesforspecificcommoditygroupsarecurrentlyunderwayinCanada.Thisincludes,forexample,theCanadianRoundTableonSustainableBeef,theCanadianRoundtableonSustainableCrops,andtheDairyFarmersofCanadaproActionprogram.Despitethattheseinitiativesareworksinprogress(i.e.specificdetailsregarding

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indicatorsandverification/auditsprotocolsareatvariousstagesofdevelopment),theywilllikelybeofconsiderablerelevanceforbothAlbertanandCanadianfarmers.Certainly,oneimportantmotivatorbehindtheemergenceofsuchinitiativesisconcernregardingtheinefficienciesandburdensthatmaybecreatedbytheimplementationofnumerous,disparatesustainablesourcingrequirementsbyvaluechainpartners.Instead,akeygoalfortheseinitiativesistoprovideasingle,commonsetofprotocolsbywhichsustainabilityperformancemaybeassessedandcommunicatedfortheirrespectivecommoditygroups.

DespitetheseeminglylowlevelofactualsustainablesourcingactivitiesthatarecurrentlybeingimplementedforthecommoditiesofconcerninCanada,thegeneralsentimentofthoseinterviewedforthisstudywasthatimplementationofsuchactivitiesisclearlyontheradar.Intervieweesfromindustryassociations,privatecompanies,andthirdpartysustainablesourcingserviceproviderswerealmostunanimousinrecognizingboththegrowingrelevanceofsustainablesourcingasamarketaccessandsociallicenseconsideration,aswellastheabundanceanddiversityofemergingschemes.

SummaryoftheSustainableSourcingSchemesConsidered

Followingthepreliminaryscreeningtodeterminetheirapplicability,eighteenschemeswereselectedformoredetailedanalysis(Table2).Theseincludebothmulti-stakeholderandprivatecompanyinitiatives.Someoftheinitiatives,suchastheCanadianRoundtableonSustainableBeef,theCanadianRoundtableonSustainableCrops,andtheDairyproActionprogramarecurrentlyunderdevelopment.Inthesecases,completedetailsarenotyetavailableregardingspecificindicators,metrics,and/orverification/auditrequirements.However,theywerenonethelessconsideredsufficientlyimportantactivitiestomerittheirinclusion-despitethatthescopeofanalysisthatispresentlypossibleislimited.

Table2.Sustainabilityschemesselectedfordetailedassessment.

SchemesSelectedforDetailedAssessment

CanadianFieldprintCalculatorSustainableAgricultureInitiativeFarmSustainabilityAssessmentTool2.0InternationalSustainabilityandCarbonCertification(andISCCPlus)PotatoSustainabilityInitiativeCanadianRoundTableonSustainableBeefCanadianRoundTableonSustainableCropsDairySustainabilityFrameworkandDairyproActionNestleSupplierCodeUnileverSustainableAgricultureInitiativeGeneralMillsMolson-CoorsSupplierCodeandAgriculturalBrewingIngredientsPolicyLoblawSourcingwithIntegrity

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KelloggsSupplierCodeSyscoCostcoWalmartSustainabilityIndexandtheSustainabilityConsortiumADM(SustainableGrowersProgram-ISCC)PepsicoSupplierCodeandSustainableFarmingInitiative

Thereisconsiderableheterogeneityinthequalityandquantityofpublicallyavailableinformationdescribingthevariousschemes.Insomecases,asubstantialamountofdetailedinformationisavailableregardingthescheme,facilitatingin-depthanalysis.Preferencewasgiventosuchschemesindevelopingtheshort-listofthosetobeconsidered.Inothercases,verylittlepublicallyavailableinformationwasidentified.WheretheschemeownerinquestionisofobviousimportanceintheCanadianfoodsystem,itwasdecidedtoanywaysincludethemintheanalysisasexamplesofsustainablesourcingintheirbusinesscategories(forexample,LoblawandADM).

Theschemesalsodifferwidelyintermsofbreadth.Somerefertosingleissueareasonly(forexample,theanimalwelfareauditsimplementedbyCostco),whereasmanyrefertonumerouscriteriaandindicators.Thefollowingsectionprovidesadetaileddescriptionofeachoftheshort-listedschemesanditsrespectiverequirements.

Multi-StakeholderInitiatives

CanadianFieldprintCalculator

TheCanadianFieldprintCalculator(Serecon2015)isbeingdevelopedinparalleltobutindependentlyoftheUSFieldtoMarketinitiative.WhereastheUSinitiativelistsamongitsmembershipalmost100organizations,includingmajorprocessors,retailers,industryassociations,NGOs,academicinstitutions,directmembershipintheCanadianinitiativeiscurrentlymuchmoremodest.Thisinitiativeis,however,workinginassociationwiththeCanadianRoundTableonSustainableCrops,whichitselfhasbroadmembershipamongstakeholdersintheCanadiancropsector.ThecalculatorhasbeenprimarilydevelopedbytheconsultingfirmSerecon.

ThepurposeoftheCanadianFieldprintCalculatoristoenablefarmers,attheindividualfarmlevel,to:

• Calculateandcomparesustainabilityoutcomesontheirfarmstoregionalaverages• Comparetheirsustainabilityoutcomesovertime• Comparethesustainabilityoutcomesofalternativescenariosontheirfarms

TheCalculatorcurrentlyincludesmetricsforLandUse,SoilLoss,EnergyUseandClimateImpact.

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DevelopmentofthecalculatorbeganwithapilotstudyofseveralWesternCanadianfieldcrops(spring,winter,anddurumwheat,canola,oats,peas,flaxandlentils).Thisstudyprovidedtheinitialmethodsanddatabasisfordevelopingthecalculator.TheintentionisthatthecalculatorwillbefurtherdevelopedsuchthatitwillultimatelyapplytoabroadersuiteofcropsthandoestheAmericanFieldtoMarketFieldprintcalculator.Moreindicatorsmayalsobedeveloped–forexample,forwateruseandbiodiversity.

DependingontherolethattheCanadianFieldprintCalculatoreventuallyplayswithinthebroadersuiteofsustainabilitymetricsthattheCanadianRoundTableonSustainableCropsintendstodevelop,itmaypotentiallyenjoywidespreaduseamongsustainablesourcingprogramsthatapplytofieldcropproductioninAlberta.Giventhatthecalculatorsupportscomparingindividualfarmstoregionalaveragesaswellastrackingchangesinindicatorperformanceovertime,itmayprovesuitabletosatisfyingthesustainablesourcingrequirementsofspecificcustomerswhorequiredemonstrationofcontinuousimprovement.

Atpresent,theCanadianFieldprintCalculatordoesnotappeartobeusedinsustainablesourcingprograms.AnotableexceptionistheCanadianpilotstudiescurrentlybeingundertakenbyGeneralMills.TheseincludestudiesoffarmsproducingoatsinManitobaandSaskatchewan(withNorthAmericanFoodIngredientsandPattersonaspartners),andalsosoyfarmsinOntario.TheformerpilotstudyimpliesthepossibilitythatuseoftheCanadianFieldprintCalculatorcouldpotentiallyberequiredofAlbertaoatproducersbyGeneralMillsinthefuture.

Useofthecalculatorisreasonablestraight-forward.Thecalculatorisfreelyavailableasadownloadable,Excel-basedtool.Thetoolrequiresthatfarmersenterdatafortheirfarmsandfarmingactivities,whichmaybespecifiedattheindividualfieldlevel.

Datarequiredincludes:

• farmandfieldlocation• farmequipmentdetailssuchasname,horsepowerorfueluse,userate(acres/hr)• soilinformation• tillagepractices• wetlanddrainage• croprotations,frequencyofrotationsandyield• fertilizer,manure,andpesticidetypeandapplicationrates• harvestpractices

SustainableAgricultureInitiativePlatform

TheSustainableAgricultureInitiative(SAI)Platformisafoodindustryinitiativetopromotesustainableagriculturalpracticesworldwide.Itwascreatedin2002byNestle,UnileverandDanoneforthepurposeofsharingknowledgeandbestpracticesforsustainableagricultureataprecompetitivelevel.Sinceitscreation,membershipintheSAIPlatformhasgrownconsiderably.ThePlatformnowhasamembership

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offoodvaluechainstakeholdersthatexceeds70,includingmanyoftheworld’slargestagri-foodprocessorsandretailers.

ThePlatformdefinessustainableagricultureas“theefficientproductionofsafe,highqualityagriculturalproducts,inawaythatprotectsandimprovesthenaturalenvironment,thesocialandeconomicconditionsoffarmers,theiremployeesandlocalcommunities,andsafeguardsthehealthandwelfareofallfarmedspecies.”Ratherthanaddressingnichemarkets,thePlatformfocusesonmainstreamagricultureand,hence,themajorityoffoodproductsglobally.

AnimportantfocusoftheSAIPlatformisthedevelopmentoftoolstofacilitatesustainablesourcingandthedisseminationandmainstreamingofsustainableagriculturalpractices.Theemphasisisnotonlyonmeasuringsustainabilityperformanceinfoodproduction,butratheroncapacitybuildingandencouragingcontinuousimprovement.

Insupportoftheseaims,theSAIPlatformactivitiesinclude:

• developingprinciplesandpracticesforthesustainableproductionofarableandvegetablecrops,coffee,dairyandfruit(bestpracticesaretestedthroughpilotprojects).

• benchmarkingprinciplesandpracticesagainsttheguidelinesandrecommendationsofotherfoodvaluechainsustainabilityschemes.

• developingaSustainabilityPerformanceAssessmenttoolforfirstorthird-partyevaluationofagriculturalpractices.

ThePlatformcurrentlyhasfiveworkinggroupsrespectivelyaddressingarableandvegetablecrops;beef,coffee,dairy,andfruit.Inaddition,fourcommitteesaredevotedtocross-cuttingagriculturalchallenges,specifically:biodiversity;farmerandsupplierpartnerships;farmsustainabilityassessment;andwater.

OfdirectrelevanceforAlbertafarmersareSAI’s“PrinciplesandPracticesforSustainableDairyFarming”and“PrinciplesandPracticesfortheSustainableProductionofArableandVegetableCrops.”Theseprinciplesandpracticesdocumentslayoutareasoffociforwhichafarmer,inpursuitofcontinuousimprovementwithrespecttosustainabilitywritlarge(i.e.includingeconomic,socialandenvironmentalsustainability)canconsiderandseektoimprovetheirfarmingsystem.Forenvironmentalsustainability,specifically,theprinciplesandpracticesreferto:

• soilfertility/soilloss• wateruseandqualityimpacts• biodiversity• energyinputs,andassociatedclimatechangeimpacts• waste

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Thedairyprinciplesandpracticesalsoprovideguidancewithrespecttoanimalwelfare(genetics,healthplanningandbio-security,andanimalhusbandry),aswellasthebroaderfarmingsystemincludingfeedproduction.

OfmoregeneralrelevanceacrossAlbertafarmingsystemswithrespecttoparticipationinpotentialsustainablesourcingschemesistheFarmSustainabilityAssessment(FSA)2.0tool.FSAisawhole-farm,self-assessmenttoolwhichfarmersandothervaluechainstakeholderscanapplyintheinterestofbenchmarkingandmonitoringforcontinuousimprovementinthesustainabilityperformanceofagriculturalactivities.Itisnotcommodity-specific,butrathermaybeusedforallcropagriculturalproductionsystemsandfarmsizes.Itisintendedforuseinsustainablesourcingbycompanieswhodonothavetheirown,company-specificcodes.Whenappliedmorebroadly,thetoolalsosupportsaggregatingfarmingdatageographically,asbycommodityandsupplier.Amongthespecificbenefitstofarmers,theSAIPlatformrefersto:

• improvingperformance• reducingcosts(i.e.withrespecttocommunicatingpracticesalongthevaluechain)• savingresources(byreducingduplicationofeffortifusedasthesoletoolforassessment,

auditingandverificationoffarmpractices)• improvingmarketaccess(i.e.preferentialaccesstocompaniesinterestedinsustainable

sourcing)

TheFSA2.0tooliscompliantwiththeprinciplesandpracticesdocumentsproducedbytheplatform,henceuseofthelattermaybesupportedbytheguidanceprovidedbytheformer.Thetoolhasalsobeenpilottested,withresultsfromthesepilotsinformingfurtherrefinementofthetool.

FarmerswishingtousetheFSA2.0toolmayeitherdownloadandcompleteanExcel-basedtool,orinputdatadirectlyviaanon-lineplatform.Resultsmaybesavedandcomparedovertime,andthefarmerhastheoptionofsharingtheresultswithcustomers.Thetoolhasanaccompanyinguserguide.

ConsistentwiththeSAIPlatformsfocusonsustainabilityinthebroadsense,theFSA2.0toolcontainsgeneralquestionsaboutthefarmingsystems,aswellasspecificquestionsrelatedtoeconomic,socialandenvironmentalsustainability.Eachquestionissupportedbyabriefguidancesection,includingrecommendedpracticeswithrespecttothespecificquestion.Subjectareasforenvironmentalsustainabilityreferto:

• Farmmanagement(i.e.seekingoutadviceonsustainablefarming;equipmentmaintenance;useofcroprotations)

• Planting(selectionofappropriatevarieties;optimumspacing;soilsamplingandmonitoring)• Soilmanagement(avoidingcompaction)• Nutrientmanagement(choosingfertilizertypesforoptimumefficiency;nutrientmanagement

plans;non-useofuntreatedsewageandsludge;ensuringthatcompositionofanytreatedsewage/sludgeisacceptable)

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• Cropprotection(trainingonandapplicationofintegratedpestmanagement;necessityofuseofchemicalcropprotectionproducts;useofselectiveratherthanbroadspectrumpesticidesandtargetedapplication;preventionofpestresistance;avoidanceofcropdiseasecross-contamination;protectionofnon-targetareas)

• Agro-chemicals(protectionofnon-targetareas)• Wastemanagement(riskassessmentforwastestorageandmitigationstrategies;waste

reduction,reuseandrecyclingstrategies)• Watermanagement(irrigationwaterquality;waterusemanagementplantooptimizeuseand

reducewaste;over-extraction;useofoptimizedirrigationmethods;avoidanceofwaterandsoilpollution;preventionofrun-offofagro-chemicalsandmanure;useofbufferzonestoprotectadjacentwaterandwildlife)

• Biodiversity(planformaintainingorimprovingbiodiversity;non-disturbance/conversionofprimaryforest,wetland,peatland,protectedgrasslandorothernativeeco-systems;habitatrestorationandcompensation)

• Air(assessment,monitoringandmitigationofairpollutionrisks)• Greenhousegasemissions(measurestomaximizeenergyuseefficiency;identification,

measurementandmonitoringofGHGemissionsources

Oncetheself-assessmentiscomplete,thetoolprovidesscorespertopic,aswellasaggregatedscoresbysustainabilitydomain(people,planet,profit)andoverall.Scorelevelscorrespondtoeitherbronze,silverorgoldcompliance.

AccordingtotheSAIPlatformwebsite,severalcompaniesincludingCoca-Cola,UnileverandMcCainarealreadyusingtheFSAtoolinsupportoftheirrespectivesustainabilitygoals.Noweb-basedliteraturewasidentifiedsuggestionthatthistooliscurrentlyusedbyanyofthesecompaniesinCanadagenerallyorinAlbertaspecifically.TelephonecorrespondencewithaUnileverCanadarepresentativesuggestedthattheUnileverSACcodeisbeingusedinCanadaasopposedtotheFSA2.0tool.However,Coca-Cola,Heineken,Mondelez,andUnileverhavedecidedtouseFSA2.0forbeetsugar,directlywithfarmers/throughsuppliersand/orasabenchmarkingreference,withacurrentfocusonEuropeansugarbeet.ThistoolcouldhencepotentiallyberelevantforAlbertasugarbeetproducersinthefuture.

InternationalSustainabilityandCarbonCertification(ISCC)andISCCPlus

TheInternationalSustainabilityandCarbonCertificationsystemisaglobal,supplychaincertificationsystemfortheecologicalandsocialsustainabilityofbio-basedfeedstocksandrenewables.Itisintendedforuseinthebioenergysector,aswellasfood,feedandchemicalmarketsmorebroadly.ISCCwasdevelopedthroughanopenmulti-stakeholderprocessbyroughly250internationalassociations.Theseincludedcorporations,researchinstitutionsandNGOs.Itsmembershipcurrentlyincludesover80organizations.

TheISCCsystemfocuseson:

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• reductionofgreenhousegasemissions(methodologiestocalculatemassbalancesandverifysupplychainGHGemissions)

• avoidanceofproductiononlandwithhighbiodiversityvalueand/orcarbonstocks• goodagriculturalpractices–inparticular,withrespecttoprotectionofsoil,waterandair• respectforhuman,labourandlandrights

TheprevalentuseoftheISCCsystemtodatehaslikelybeenthecertificationofgreenhousegasemissionlevelsandasubsetofbasicsustainabilityrequirementsforbiofuelsupplychains.TherequirementsforgreenhousegasemissionlevelsforbiofuelfeedstocksimportedintoEUmemberstates,asmandatedbytheRenewableEnergyDirective(RED),haveprovidedparticularmotivationforthedevelopmentandapplicationoftheISCCsystem(ISCCisofficiallyrecognizedbytheRED).ISCCPluswassubsequentlydevelopedtocoverthebroadercertificationoffood,feed,technical/chemical(e.g.bioplastics)andotherbioenergyapplications(e.g.solidbiomass)forsustainabilityperformanceacrossabroadersuiteofindicatordomains.

ISCCprovidesaseriesofdetailedstandardsandguidancedocumentstobeusedinsupportofthecertificationprocess.AdistinctselectionofsystemdocumentscharacterizeseachoftheISCCcertificationsystems,whichareISCCDE,ISCCDE36thBImschV,ISCCEU,ISCCDE36thBImSchVandISCCPLUS.FarmerswishingtoaccessEUbiofuelfeedstockmarketsmustcompleteISCCEUcertification.UsingtheISCCsystemtosupportclaimsrelatedtobroadersustainabilitycriteriainmarketsotherthantheEUbiofuelfeedstockmarketrequirescompletionofISCCPluscertification.ThelatterrequirescompletionofcoreISCCrequirementsalongwithadditionaladd-ons.ThedocumentsthatarecommonacrosstheEU,DEandPLUSschemesare:

• ISCC202:Sustainabilityrequirementso comprisessixprincipleswiththeirrespectivecriteriacoveringbothecologicalandsocial

sustainabilityissueso criteriaaredefinedaseither"majormusts"or"minormusts"(seeannex1).Asuccessful

auditrequiressatisfactionofallmajormusts,and60%ofminormusts.• ISCC203:Requirementsfortraceability• ISCC204:Massbalancecalculationmethodology• ISCC205:GHGemissionscalculationmethodology• ISCC207:Riskmanagement

Themajorandminor“musts”thatmustbefulfilledwithrespecttoISCC202atthewholefarmlevelareorganizedintermsofsixoverarchingprinciples,withdetailedcriteriaforeachprinciple.Theprinciplesandmajorcriteria(sub-criteriaarenotlistedhere–forspecificdetails,seeISCC202Annex1)are:

1. Biomassshallnotbeproducedonlandwithhighbiodiversityvalueorhighcarbonstocks.Highconservationvalueareasshallbeprotected.

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2. Biomassshallbeproducedinanenvironmentallyresponsibleway.Thisincludestheprotectionofsoil,waterandairandtheapplicationofGoodAgriculturalPracticesregarding

a. Environmentalimpactassessmentandconservationb. Naturalwatercoursesc. Soilconservationandavoidanceofsoildegradationd. Soilorganicmatterandsoilstructuree. Groundwaterandirrigationf. Useoffertilizerg. Integratedpestmanagementh. Useofplantprotectionproductsi. Plantprotectionproductsj. Emptyplantprotectionproductcontainersandwastedisposal

3. Safeworkingconditionsthroughtrainingandeducation,useofprotectiveclothingandproper

andtimelyassistanceintheeventofaccidentsa. Safeworkingconditionsb. Plantprotectionproducthandling

4. Biomassproductionshallnotviolatehumanrights,labourrightsorlandrights.Itshallpromote

responsiblelabourconditionsandworker’shealth,safetyandwelfareandshallbebasedonresponsiblecommunityrelations

5. Biomassproductionshalltakeplaceincompliancewithallapplicableregionalandnationallawsandshallfollowrelevantinternationaltreaties

6. Goodmanagementpracticesshallbeimplemented

ISCC205providestherequirementsforgreenhousegascalculationsandaudits.IndividualfarmerswishingtodemonstratecompliancewiththeISCCsystemmayprovidedatabasedondefaultvaluesor,ifitmaybeadvantageous,undertakecalculationsbasedonactualvaluesfortheirfarmingactivities.ISCC205providestheguidanceandrequirementsforeachoption.Forthelatter,dataonamountsandtypesofmaterialsusedsuchaspesticides,fertilizers,andenergyinputsmustbeprovided,alongwithinformationontypesandamountsofwastes,yields,andanyemissionsrelatedtolandusechange.Thesedatamustbesupportedbydocumentsorotherevidencesuchasproductionreports,deliverynotes,contracts,invoices,etc.EmissionfactorsforconvertinginputsandoutputsintoGHGemissionestimatesmustbetakenfromthe“ISCClistofemissionfactors”,whichformspartoftheISCC205document.

ISCCPlusalsoprovidesspecificrequirementsforbiomassproductionsystemsthatproducefood(ISCCPlus260-04)andfeed(ISCCPlus260-03).ThesedocumentsspecifyrecordkeepingrequirementsandspecificadditionalrequirementsforISCCPlus205forcalculatingGHGemissions.

ISCCPlus202-01specifiestherequirementsforthe“Environmentalmanagementandbiodiversity”add-on.Requirementsareprovidedwithrespecttomanagementplansforsoil,water,energy,and

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biodiversity.Eachmanagementplanmustbeprecededbyastatusdeterminationphase.Thisisfollowedbytwophasesofriskassessment(bothnaturalriskfactorsandagriculturalmanagementriskfactors)anddevelopmentofanactionplan,implementationoftheactionplan,andon-goingriskmanagementandmonitoring.

TheAmericanNationalStandardsInstitute(ANSI)accreditscertificationbodiesthatwillbeconductingISCCcertification.TheaccreditationverifiesthatthecertificationbodiescomplywiththeISCCsystemaswellasrelevantinternationalstandards.

ThenecessaryseriesofstepstowardsobtaininganISCCcertificateinclude:

• enteringintoacontractualagreementwithanaccreditedcertificationbody• registeringatISCC• preparingfortheauditinternally• undergoingtheauditbythecertificationbody,andanynecessaryremedialactions• certificationbodysubmitsdocumentationtoISCC• receivingcertificatesforthespecificcertificationchosen

Oncecertificationisreceived,thenthesuccessfulapplicantmayproceedwiththepermitteduses/applications.Thesemayincludedemonstrationofregulatorycompliance(forexample,foraccesstoEUbiofuelmarkets)ortheuseofISCClogosandclaims.Morethan10,000certificatesofcompliancewithISCC,verifiedthroughthird-partyaudit,havebeenissuedinover100countriessinceitsinceptionin2010.

SinceavarietyofdocumentsmustbeusedforISCCcertification,thereiscertainlypotentialforconfusionfornewapplicantsnavigatingthecertificationprocess.Calculationsmayalsobecomplicated(forexample,calculatinggreenhousegasemissionsforagriculturalproduction).ISCCrecommendssolicitingexpertassistanceinundergoingthecertificationprocess.Finally,someoftherequirementsarequitegeneral(forexample,“goodmanagementpracticesshallbeimplemented)hencetheremaybeconfusionastowhichactivitieswillsatisfythestaterequirements.

Atpresent,ISCCcertificationforbiofuelfeedstocksdestinedforEUmarketsisthemostrelevantoftheISCCsystemcertificationoptionsforsomeAlbertafarmers,sinceithasdirectmarketaccessimplications.However,sinceISCCallowsfordeterminationofregionalvalues,itispossibleforprocessorstocalculateandprovideaveragedataforthepoolofproducersfromwhichtheysourcebiomass.TheCanadianCropCarbonFootprintLook-upToolwasdesignedforthispurpose.Ifthisapproachischosen,thenfarmersmaynotneedtobedirectlyinvolvedinsatisfyingtheinformationalandproceduralrequirementsofISCCcertification.

ISCCclaimscross-compliancewithboththeUnileverSustainableAgricultureCode(thisrequiresadherencewiththeISCCstandardforsustainabilityrequirements(V2.0)andtheadd-ons202-01

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"EnvironmentalManagementandBiodiversity"aswellas202-02"ClassifiedChemicals")andtheSAIPlatform’sFarmSustainabilityAssessment(FSA2.0silverlevel)tool.

TheISCCprogramhasalreadyissuedcertificatestoseveralcompaniesoperatinginCanadasuchasViterra(ISCCPlus),ADMAgri-Industries(ISCCEU),CargillCanada(ISCCEU),andBungeCanada(ISCCEU).

PotatoSustainabilityInitiative

Severalmajorcustomersofpotatoproductshave,overtime,developedin-housesustainablesourcingrequirementsforpotatoes.Theexistenceofmultipleprogramscreatedinefficienciesforpotatofarmerssellingproducttomorethanonecustomer,aswellasindividualcompaniesimplementingtheirrespectiveprograms.ThePotatoSustainabilityInitiative(PSI)wasinitiatedinordertostream-linesustainabilityreportingandsourcingindustry-wide.PSIwasdevelopedbyacollaborationofprocessors,growersandcustomers,includingtheNationalPotatoCouncil(US),McDonalds,McCain,Simplot,theCanadianPotatoCouncil,LambWeston,HeinzAgriculture,Cavendish,BasicAmericanFoods,andSysco.

ThePSIhasdevelopedanon-lineplatformwherepotatogrowerscancompleteadetailedquestionnaireregardingtheirpractices(i.e.self-assessment),obtainscoresfortheirpracticesforavarietyofsocio-economicandenvironmentalsustainabilityindicators,andchoosetosharetheirresultsdirectlywiththeircustomers.Growerscanalsosavetheirresultsinordertocomparetheirperformancefromoneyeartothenext,identifyareasforimprovement,anddemonstratecontinuousimprovementovertime.

Scoresrelevanttoenvironmentaloutcomesarecurrentlyassignedfor:

• sustainablefarmingo seedhandlingandplanting

▪ activitiestoavoidorreducepestordiseaseproblemsandtransmissionpotential▪ useofcertifiedorcleanedseedinrotationalcrops▪ washing/disinfectingpractices▪ assessmentofseedhandlingandplantingsystems▪ participationinnewpotatovarietytests▪ trialsofGMpotatoes▪ compliancewithregulatoryandindustryprotocolsforGMfarmtrials,and

informingcustomers▪ basisforfieldselection▪ expansionofcultivationarea▪ suitabilitycriteriaforfieldselection▪ usesofGPS

o pesticideandnutrienthandlingandapplication

▪ legalcomplianceformixing,storage,useanddisposal▪ maintenanceofapplicationrecordsforthreeyears▪ equipmentcalibration

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▪ availabilityofpesticidespillcontainmentmaterialsatmixingandapplicationsites

▪ disposalofpesticidecontainers▪ operationofpesticideapplicationequipmentwithinwind-speedlimits,andwith

appropriateparameterstominimizespraydrift▪ existenceandavailabilityoffarmdriftmanagementplans▪ citationbyregulatoryagencyforoff-targetapplicationofagrochemicalswithin

pastthreeyears(notscored)▪ considerationofweatherforecastpriortonutrientapplications▪ preventionorminimizationofrun-offbyconsiderationofsoilconditions

o pest,weed,diseasemanagement

▪ knowledgeabilityofstaff/advisorregardingmajorpests/weeds/diseasesandtheirmanagement

▪ accesstoIPMinformationresources▪ precautionsagainsttransportofperennialweedsbetweenfieldsonequipment▪ controlofnoxiousweedsalongfieldedges▪ basisformanagementdecisionsregardingsoil-bornepestsordiseases▪ herbicideusereductionthroughnonchemicalmethods▪ locationsandfrequencyofpestanddiseasescouting,samplingandmonitoring▪ monitoringforinsectvectorsuntilendofseason▪ participationinregionalinsectanddiseasescoutingprogramsandinformation

sharing▪ pesticideapplicationdecisionsandtimingbasedonspecifictechniques▪ useofbiologicalmethodstocontrol/suppresspests/diseases/weeds▪ useofculturalcontrolpracticestocontrolpests/diseases▪ partialcontrolofinsects/diseasesthroughchemicalornon-chemical

managementofalternatehostsorsites▪ useofbandedpesticideapplicationtoreduceoveralltreatedarea▪ useofspotspraypesticideapplicationtoreduceoveralltreatedarea▪ partialcontrolofdifficultinsectpests/weedsinrotationcrops▪ basisforpesticideselection▪ identificationofpesticideresistancerisk,anduseofstrategiestodelay

resistance

o nutrientmanagement▪ completenutrientmanagementrecordsmaintainedandavailableforthree

years▪ useofbiosolids▪ useofanimalmanureorcompostonpotatofields▪ useofanimalmanureorcompostfollowsanutrientmanagementplan▪ useofgridorzonesoilsamplingtoidentifyfieldvariabilityandapplynutrients

accordingly

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▪ useofin-seasonnutrientsamplingasperregionalneeds▪ useofremotesensingtomonitorcrophealth▪ nutrientapplicationratesasperavailablenutrientsandprojectedcropneed▪ useofmultiplenitrogenapplicationsorslowreleasefertilizerswhere

recommended▪ inclusionofnitrogen-fixingandrecoveringcropsinatleast25%ofpotatocrop

rotation▪ phosphorusapplicationsoastopreventlossesandassociatedsurfacewater

contamination▪ splitpotassiumapplicationwhenindicatedbysoiltesting

o managementsystems

▪ implementationofwhole-farmsoilandwaterconservationplantomaintain/improvesoilandwaterquality

▪ evaluationpracticesforoverallcropmanagementperformance▪ communicationwithrespecttofarmstewardshipimprovements

• environmentalsustainability

o waterconservationandquality▪ waterobtainedasperapplicableregulations▪ waterconservationmeasuresforfacilitiesareinplace▪ preparationandimplementationofwaterwithdrawalsanduses,including

mitigationeffortswithrespecttodetrimentalimpacts▪ useofirrigationwater▪ irrigationwaterapplicationrecords,andawarenessofrainfalllevels▪ evaluationofirrigationsystemperformanceandcorrectivemaintenance▪ basisforschedulingofirrigation▪ irrigationtechnologiesthatareapplied▪ frequencyofevaluationofirrigationsystemefficiency

o soilconservationandquality

▪ rotationfrequencyandproportion(atleast75%)▪ soilcompactionmonitoringandmitigationstrategies▪ proportionofacreagewherebaresoiliscoveredfollowingharvest▪ useoflandstructuremodificationtoreduceerosionorwatercollection

problems▪ soilhealthmonitoringandimprovementmeasures

o biodiversity

▪ sensitiveareasonfarmaremapped▪ existenceofmeasurestoprotectsensitiveareas,andannualmonitoring▪ establishmentofproductiononlandnotpreviouslycultivatedwithinpastthree

years▪ existenceandscopeofwrittenplantoprotect/enhancebiodiversity▪ farmresourcesinvestedinconvertingunproductiveormarginallandinto

conservationareas

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▪ measuresinplacetoidentifyinvasivespeciesandpreventtheirspread

o pollinatorprotection▪ practicesforprotectingandenhancingpollinatorabundanceanddiversity

o energyconservation

▪ scopeofenergyconservationmeasures▪ equipmentmaintenancepracticesandrecordstomaximizefuelefficiency

o waste

▪ useoffireforwastedisposal▪ vegetationburningpractices▪ legalcomplianceofwastewatermanagement▪ legalcomplianceoffuelstorage

Informationonharvestrecords,recyclingrecordsandworkersafetyrecordsarealsocollected.

Intotalthesurveyconsistsof105questionsforthesustainablefarming,social,economicandenvironmentalsustainabilitysections.Inaddition,thereisasetofquestionspertainingtoharvest,recyclingandworkersafetyrecords,andonequestionregardingfarmerparticipationinarecognizedfoodsafetyprogram.Thequestionspredominantlyrequireyes/noanswers,orchoosingamongasetofpossibleanswers.Manyofthequestionsareaccompaniedbysupportinginformation,whichcanbedirectlyaccessedviamouseclick.Categorydefinitionsarealsoprovided.Oncethesurveyiscompleted,scoresaregeneratedonascaleof0-4foreachsub-category,foreachofthefourparentcategories,andasasingle,aggregatedscore.

Overall,thesystemiseasytouse,seeminglyquitecomprehensive,andprovidesaverystreamlinedanddirectlineofcommunicationbetweenproducersandcustomers.Thesystemis,bynature,basedonself-assessment.Itisunclearwhetherornotthesystemiscurrentlysupportedbythird-partyaudit.Likely,thiswouldbeatthediscretionofspecificcustomers.However,theCanadaGAP2015AnnualReportindicatesplanstoofferverificationauditsforgrowersparticipatinginthePSI.Inaddition,McCainFoodsusingCanadaGAPthird-partyauditsalongwithPSIself,secondandthirdpartyauditsaspartoftheirMcCainGAPprogramforsourcingpotatoes.

CanadianRoundTableonSustainableBeef

TheGlobalRoundTableonSustainableBeef(GRSB)releaseditsfirstsetofPrinciplesandCriteriainlater2014.ThesePrinciplesandCriteriasettheglobalagendawithrespecttopursuingmoresustainablebeefproductionpracticesinasetofkeyareas.Theyareintendedtoactasanumbrellaforthedevelopmentofregionallyornationally-appropriatesocial,environmentalandeconomicsustainabilityindicators.

ThefiveGRSBprinciplesare:

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1.NaturalResources:thebeefvaluechainmanagesnaturalresourcesresponsiblyandenhancesecosystemhealth;

2.PeopleandtheCommunity:sustainablebeefstakeholdersprotectandrespecthumanrights,andrecognizethecriticalrolesthatallparticipantswithinthebeefvaluechainplayintheircommunityregardingculture,heritage,employment,landrightsandhealth;

3.AnimalHealthandWelfare:sustainablebeefproducersandprocessorsrespectandmanageanimalstoensuretheirhealthandwelfare;

4.Food:sustainablebeefstakeholdersensurethesafetyandqualityofbeefproductsandutilizeinformation-sharingsystemsthatpromotebeefsustainability;and

5.EfficiencyandInnovation:sustainablebeefstakeholdersencourageinnovation,optimizeproduction,reducewasteandaddtoeconomicviability.

Withinthiscontext,theCanadianRoundtableforSustainableBeef(CRSB)isanational,multi-stakeholderbodythatwasconvenedtoorchestratethedevelopmentofCanadian-specificsustainabilityindicators,alongwithaverificationsystem,forbeefproductionsystems.DevelopmentoftheCanadianindicatorshasbeenleadbyamulti-stakeholdercommitteeof22experts.Thisgroupwaschargedwithidentifyingmeasurable,outcomes-based(i.e.asopposedtoprescriptive)sustainabilityindicatorsthatsatisfythefollowingcriteria:

• environmentalsustainability• science-based,andbasedonexpertopinion• developedthroughaconsensus-based,multi-stakeholderprocess• nationallyapplicable• consistentwiththeGlobalRoundTableonSustainableBeefPrinciplesandCriteria

ThefirstsetofdraftindicatorswasmadeavailableforpublicconsultationinFebruary2016.Thisfirstsetofindicatorsisspecifictotheprimaryproductionphaseofthebeefsupplychain(i.e.cow-calfoperations,backgrounding,feedlot,anddairybeefproduction).Theydonotincludefeedproductionorpost-farmstages,althoughtheCRSBhasexpressedtheintentiontosimilarlydevelopindicatorsforthesesupplychainstagesinthefuture.

Thefollowingdraftindicatorsthatrefertoenvironmentalsustainabilityconcernsoranimalhealthandwelfare,organizedbyGSRBPrinciple,areasfollows:

• NaturalResourceso managementofnutrientrun-off,riparianareas,surfaceandgroundwatersourcesto

maintainorimprovewatershedhealtho maintenanceorimprovementofsoilhealtho implementationofbeneficialmanagementpracticeswithrequesttocarbon

sequestrationorminimizationofemissions

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o implementationofpracticestomanageairqualityimpactsforpeopleandanimalso implementationofpracticestomaintainorenhancenativeecosystems,grasslands,and

tamepastureso maintenanceorenhancementofwildlifehabitat

• AnimalHealthandWelfare

o properanimalhealthpromotedthroughmeetingnutritionalneedsofcattleo watersupplytocattleissufficientinquantityandqualitytomeettheirphysicalneedso demonstrabilityofanimalhealthmonitoringandmaintenance,includingpractices

relatedtosickandinjuredanimalso demonstrabilityofresponsibleuseanddisposalofanimalhealthproductsrelativeto

labelrecommendationsorveterinaryprescriptiono demonstrabilityofstepstomitigate/minimizeanimalpaino demonstrabilityofcleardecisionpathandacceptablemethodsforeuthanasiao stockingdensitiessoastoallowexpressionofnormalbehaviour,includingresting

positionso demonstrabilityofpracticestominimizestress

• EfficiencyandInnovation

o wastereduction,reuseandrecycling,asperavailabilityandfeasibilityofservicesandtechnologies

o demonstrabilityofresponsibleuseofenergyandresourceso useofinnovationandtechnologytoimproveresponsibleproductiono demonstrabilityofsafeandresponsibledisposalofcropproductso demonstrabilityofresponsiblemanagementofdeadstocko engagementincontinuouslearningwithrespecttosustainabilityinbeefproduction

Thesedraftindicators,oncefinalized,willformthebasisof“what”willbemeasuredwithrespecttosustainabilityinbeefproduction.TheCSRBbeganacomplementarystreamofworkinJanuary2016todetermine“how”performanceforeachindicatorwillbemeasured.UndertakenbytheVerificationCommittee,thisworkwillconsiderexistingtoolsandprogramsthatarealreadyinplacewithintheindustry,alongwithwhateverelsemaybenecessarytosupportverification/auditofperformanceatthefarm-level.

CanadianRoundTableonSustainableCrops

TheCanadianRoundTableonSustainableCrops(CRSC)isamulti-stakeholderinitiativeincludingproducers,grainhandlers,cropinputproviders,commodityandfoodprocessors,foodretailersandrestaurants,governmentandNGOrepresentatives.TheRoundTablewasformedin2013tosupportcross-commoditycollaborationonsustainabilityissuesfortheparticipantsintheCanadiancropssector.ThemissionoftheCRSCisto“createvalueforallmembersofthegrainssectorbyprovidinganationalforumforadvancing,reportingonandcommunicatingthesustainabilityofCanadiangrainproduction.”

TheRoundTablesguidingprinciplesaretobe:

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• nationalinscope• ledbyindustry• inclusiveandtransparent• science-based• market-responsive• consensus-based• supportingon-goingimprovement• sharingcostsandbenefitsacrossthevaluechain

TheCRSChascommittedtoproducingtwodeliverables:theCanadianStatementofGrainsSustainability,andtheCanadianStandardofGrainsSustainability.

Twoprojectsarecurrentlyunderwayinsupportofproducingthesedeliverables.ThefirstprojectistheSustainabilityMetricsPlatformProject.Thegoalofthisprojectistodevelopafullcomplementofsustainabilitymetricsforregional-scaleanalysis(whereappropriate,andfarm-levelwherenecessary)andreportingforeachcommodity(grains,oilseeds,pulsesandspecialtycrops),alongwithareportingplatform.Thiswillincludegenerationofresearchdata,aswellasidentifyingwhichmetricsmustbedevelopedinordertomeetcurrentandemergingvaluechainneeds.Workisalreadyon-goingtodevelopregion-specificcarbonfootprintestimatesforeachcrop.ThisworkbuildsonthemethodsusedintheCanadianCropCarbonFootprintLook-upTool,whichwasdevelopedbytheCanolaCouncilofCanadatosupportcanolaproducersingainingaccesstoEUbiofuelsmarketsbydemonstratingcompliancewiththerequirementsoftheRenewableEnergyDirective.Asecondstudyhasalsobeenundertakentodeterminetheextenttowhichthecropssectorcurrentlyperformswithrespecttokeysocialsustainabilityindicators.TheoutcomesofthesetwostudieswillbeusedtopopulatetheSustainabilityMetricsplatform.Completionofthefirstphasein2018isanticipated.

ThesecondprojectistheCRSCPilotProject,whichwillculminateintheCanadianStatementofGrainsSustainability,alongwithasupportingstandard.Thispilotprojecthasthefollowingfourmilestones:

(1) evaluateindicatorsofexistingprogramsfortheirpotentialutilityinthecontextofCanadiancroppingsystems,aswellasaccordancewiththeCRSCCorePrinciplesandCriteria

(2) Establishabaselineofpractice-basedoroutcomes-basedsustainableproductionindicatorstobeappliedattheregionallevel(wherepossible,orfarmlevelwherenecessary).

(3) Involvegrowersintestingtheselectedindicators

(4) Disseminatetheprojectresults.

Draftindicatorsarenotyetpubliclyavailableforanalysis.However,inlightofthebroadindustryrepresentation/participationinthisinitiative,itmaywellproverelevantforAlbertafarmers.Unclearishowtheregional-scalemetricswillenablesatisfactionoffarm-levelreportingrequirementsthatmaybeassociatedwithcustomersustainablesourcinginitiatives.

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DairySustainabilityFrameworkandDairyproAction

In2009,sixorganizationsbroadlyrepresentativeoftheglobaldairysector(i.e.EuropeanDairyAssociation(EDA),EasternandSouthernAfricanDairyAssociation(ESADA),Pan-AmericanDairyFederation(FEPALE),GlobalDairyPlatform(GDP),InternationalDairyFederation(IDF)andSustainableAgriculturalInitiativePlatform(SAI))launchedtheGlobalDairyAgendaforAction(GDAA).ThisAgendaexpressedthecommitmentmadebythedairyindustrytoactivelyreducesectoralGHGemissionsthroughoutthevaluechain.Subsequently,theDairySustainabilityFramework(DSF)wasdeveloped,whichistheGDAAprogramforaligningandconnectingsustainabilityinitiativesinthedairysector.Thisframeworkfocuseson11sustainabilitycriteriathatcoverenvironmental,socialandeconomicsustainabilityissues.TheDSFisintendedtoprovidetheumbrellaframeworkforlocal-scalesustainabilityinitiativesandprogramsinthedairysector.The11criteriaare:

• GreenhouseGasEmissions(quantificationandreductionacrossthefullvaluechainthroughalleconomicallyviablemechanisms)

• SoilNutrients(managementofnutrientapplicationtominimizewaterandairqualityimpactswhilemaintainingandenhancingsoilquality)

• Waste(generationminimized,orwastereusedandrecycled)• Water(availableandqualityisresponsiblymanagedthroughoutthevaluechain)• Soil(proactivemanagementandenhancementofqualityandretentiontooptimizeproductivity)• Biodiversity(risksareunderstoodandstrategiestomaintainorenhancebiodiversityare

implemented)• MarketDevelopment(economicviabilityforvaluechainparticipantsthroughdevelopmentof

transparentandeffectivemarkets)• RuralEconomies(sectorsupportsresilienceandeconomicviabilityoffarmersandrural

communities)• WorkingConditions(workersafetyandrightsarerespectedandpromoted)• ProductSafety&Quality(optimalnutrition,qualityandsafetyofdairyproductsthoughintegrity

andtransparencyacrosssupplychain)• AnimalCare(fivefreedoms,animalabletoengageinrelativelynormalpatternsofbehaviour)

TheDairyproActioninitiativerepresentstheCanadianresponsetotheGDAAandDSF.ItisbeingdevelopedandimplementbytheDairyFarmersofCanada(DFC)anditsmembers.Participationintheinitiativeisintendedtosupportfarmersinprovidingassurancetocustomersregardingtheireffortstoensuremilkqualityandsafety,alongwithexpectationsrelatedtoanimalcare,healthandwelfare,andenvironmentalstewardship.ParticipationinandcompliancewithallrequirementsoftheproActionprogramwillbemandatoryforallCanadiandairyfarmers,withassuranceviathird-partyaudit.

Specifically,thepurposeofproActionistoenablefarmersto:

• Implementasingle,national,credible,practicalon-farminitiative• Addresssocietaldemandsondairyfarming• SupportthemarketingandbrandingofCanadianmilk

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TheenvironmentalcomponentofproActioniscurrentlybasedoncompletionofanEnvironmentalFarmPlan.

PrivateCompanyInitiatives

NestléSupplierCode

Nestlehasdevelopedseveralpublicallyavailabledocumentsthatoutlinethecompany’ssustainabilitypriorities,activities,andrequirements,includingwithrespecttosustainablesourcing.Thesedocumentsinclude:

• NestleResponsibleSourcingGuideline• NestleSupplierCode• NestlePolicyonEnvironmentalSustainability• NestleCommitmentonClimateChange• NestleCommitmentonDeforestationandForestStewardship• NestleCommitmentonChildLabourinAgriculturalSupplyChains• NestleCommitmentonRuralDevelopment• NestleCommitmentonFarmAnimalWelfare• NestleCommitmentontheResponsibleUseofMaterialsfromAgriculturalOrigin• NestleCommitmentonWaterStewardship

Inthecaseofdirectsupplyfromfarms,NestlealsorequiresthatfarmersadheretoapplicableGoodAgriculturalPractices,withguidanceprovidedbytheNestleResponsibleSourcingGuidelineforMaterialsofAgriculture,Forestry,FisheriesandAquacultureOrigin.

Nestle’sSupplierCodedefinesminimumstandardsthatNestlerequiresbemetbytheirsuppliersandsub-tiersuppliers,allthewaybacktoprimaryproductionindustries.Ratherthanattempttodirectlymanagetheirentiresupplychains,NestleratherrequiresthateachsupplierverifycomplianceoftheCodewithitsownsub-tiersuppliers,includingfarmers.However,Nestlealsomaintainstherighttoverifycompliancethroughinternalorthird-partyaudit.ThestandardsprovidedbytheCodeareintendedtofostercontinuousimprovementalongthesupplychain.Forfarmers,thisincludesestablishmentofmilestonesandsystemstoensurethatpracticesarecontinuouslyimproved,withmarketaccessimplicationsifsuppliersfailtomeetthisrequirement.Nestle’sprocurementcontractsexplicitlyreferencetheCode,hencecommittingsupplierstoadherence.

TheNestleSupplierCodereferstothefollowing4pillars:

• HumanRightso freedomofassociationandcollectivebargainingrightso forcedlabouro employmentpracticeso minimumageofemployment

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o fairandequaltreatmento workingtimeandrestdayso wagesandbenefits

• SafetyandHealth

o workplaceenvironmento housingconditionsandrespectofprivacyo emergencypreparednesso productqualityandsafety

• EnvironmentalSustainability

o environmentalpermitsandreporting(legalcompliance)o environmentalmanagementsystem(mustdocumentandimplementasystembasedon

internationalstandardssuchasISO14001toidentify,controlandmitigatesignificantenvironmentalimpacts)

o hazardousmaterialsandproductsafety(basicpractices;legalcompliance;employeetraining)

o resourceconsumption,pollutionpreventionandwasteminimization(optimizationofresourceefficiency;implementationofpollutionpreventionmeasures;legalcomplianceofwastedisposalpractices)

• BusinessIntegrityo anti-briberyo grievancemechanismso recordso origin(traceability)o intellectualpropertyo conflictofinterest

AccordingtoNestle,“Nestléexpectsitssupplierstocontinuouslymonitorandverifytheirperformanceandcontinuousimprovementagainsttheserequirements.”SuppliersmustalsocommittonotifyingNestleofanysuspectedviolations,andtosubmittoaudits.

TheNestlesResponsibleSourcingGuideline(RSG),whichisapplicablefortheupstreamvaluechainincludingprimaryproduction,complementstheSupplierCode.TheRSGrequirementsapplytoallmaterialsofagricultural,forestry,fisheryandaquacultureorigin,withMaterialSpecificRequirementsextendingtheGeneralPrinciplesandRequirementsforeachprioritymaterial.TheoverallthrustoftheRSGisto“removetheworst,promotethebest,improvetherest.”

AmongtheGeneralRequirementsoftheRSG,environmentallyrelevantrequirementsinclude:

• Conversionofnaturalvegetationo nosourcingfromareasconvertedfromnaturalforestsafter01-02-2013o identificationandprotectionofHighConservationValues(includingabovegroundand

soilcarbonstocks,waterstewardship,livelihoods,speciesrequiringlargecontiguoushabitats,protectedareas)

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• Environmentalimpacts

o implementationofwatermanagementplan,andadditionalmeasuresinwaterstressedareas

o useofchemicalsconsistentwithbestagriculturalpractices▪ pestanddiseasemanagementbasedonIntegratedPestManagementprograms

o Soilmanagementconsistentwithbestagriculturalpractices

▪ takingintoaccountsoilstructure,fertilityanderosion▪ fertilizersappliedbasedonsoiltestingandsoastominimizenutrientrun-off

andGHGemissions▪ soilcarbonlevelsaremaintainedandenhanced▪ agrochemicaluseisminimized

o identificationandreductionofsignificantimpactsviaprocessesofcontinuous

improvement▪ waste▪ biodiversity▪ GHGemissions▪ energyefficiency

AnimalwelfarerequirementsoftheRSGGeneralRequirementsrefertothe“FiveFreedoms,”whichare:

• Freedomfromhunger,thirstandmalnutrition• Freedomfromfearanddistress• Freedomfromphysicalandthermaldiscomfort• Freedomfrompain,injuryanddisease• Freedomtoexpressnormalpatternsofbehaviouroffarmedanimals.

InadditiontotheGeneralRequirements,theRSGprovidesmaterialspecificrequirementsforeachofthe12highvolumematerialssourcedbyNestle.Ofthese,thosecategoriesthatrefertocommoditiesprioritizedforthecurrentstudyare:

• sugaro thespecificrequirementsprovideadditionalguidancewithrespecttosugarcane,but

forsugarbeetsnoteonlythatproducersmustbeabletodemonstratecompliancewiththeNestleRSG

• dairy(freshmilkaccountedfor55%ofrawmaterialsusedbyNestlein2014)o manuremanagement(priorityareaforcontinuousimprovement)

• meat,poultryandeggs

o supplychaintransparency(Nestlewillprioritizesupplierrelationshipsforanimalby-productsusedinpetfoodswherefulltraceabilityisavailable)

o fornon-GMfeedcropmarkets,industrystandardsrequiringthird-partyauditsshouldbeapplied

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o forlivestockproduction▪ goodhusbandrysystemsmustbeimplementedtopreventoccurrenceof

diseaseandminimizeuseofveterinarydrugs▪ demonstrationofcontinuousimprovementinhusbandrypractices▪ preventionoffeedcontamination(legalcomplianceanddemonstrationof

continuousimprovement)▪ useoffeedingredients(legalcompliance;medicatedfeedappliedunder

veterinarysupervisionintheframeworkofananimalhealthplan)▪ useofgrowthpromoters(legalcomplianceandimplementationoflong-term

phase-outplan)▪ breedingtechniques(geneticselectiontakesintoaccountanimalhealthand

welfare;nouseofclonedanimalsortheirderivativesinthefood/feedchain)▪ animalwelfare(animalwelfaresystemsguidedbyOIEGeneralPrinciplesforthe

WelfareofAnimalsinLivestockProductionSystems,withemphasisoncontinuousimprovement)

AlthoughnotspecifiedintheRSG,Nestleelsewhereindicatesthatuseofgestationcrates,vealcrates,andbatterycagesintheirsupplychainswillbephaseoutovertime.

The2014NestleinSocietyCSRreportindicatesanobjectiveofsourcing30%ofthevolumeofthese12prioritycategoriesfromsourcesthatarecompliantwiththeResponsibleSourcingGuidelineby2015.

NestlealsoappliestheirResponse-Inducing-Sustainability-Evaluation(RISE)tooltohelpsmallholderfarmersevaluateandreducefarm-levelsustainabilityimpacts.Forenvironmentalimpactsthetool,whichuses10performanceratingsfrom“problematic”to“goodperformance,”helpsidentifyareasforimprovementwithrespecttocropproduction,soiluse,nutrientflows,waterandenergy,andpotentialeffectsonclimatechangeandbiodiversity.

UnileverSustainableAgricultureCode(SAC)

AcorecomponentoftheUnilevervisionistodoublethesizeofthecompany’sbusinesswhilereducingoverallenvironmentalimpacts.By2020,thecompanyintendstosourceallofitsagriculturalrawmaterialsfromfarmsthatapplysustainableagriculturalpractices.Toachievethisgoal,Unileverexpectsthecooperationandcollaborationofsuppliers–inparticularatthelevelofprimaryresourceproduction,wheresupplychainimpactstendtobeconcentrated.Specifically,Unileverrequiresproducersoftheagriculturalrawmaterialssourcedbythecompanyocommittodemonstratecompliancewithminimumperformancestandardsaswellascontinuousimprovementovertime.

TheseminimumperformancestandardsareembodiedintheUnileverSustainableAgricultureCode(SAC).TheSACwasdevelopedinconsultationwithfarmers,researchers,andNGOs.TheSACformsthebasisoftheUnileverSustainableSourcingprogram,whichwasdesignedtoenableUnilevertomeasureprogresstowardsitssustainablesourcinggoals.SinceUnilevertypicallysourcesfromsupplierssuchasprocessorsratherthandirectlyfromfarmers,thecompanyrequiresitssupplierstocommittoensuring

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thatfarmersaremeetingtheSACrequirements.TheUnileverSchemeRulesdescribeshowsuppliersaretoprovidesuchassurance.

TheSACdescribestheGoodAgriculturalPracticesthatareexpectedofUnileversuppliers.Thepracticesaredividedintomandatoryrequirementsand“GoodPractices.”GoodPracticesare,inturn,describedintermsof“must”requirements(mandatory)and“should”requirements,whicharestronglyadvisedandhavethepotentialtobecomemandatory.Forpracticesreferringtosoilsandsoilmanagement,thesearespecifictothefieldsonwhichspecificcrops(includingfieldsinrotationwithothercrops)aregrown.Practicesrelatedtosocialsustainabilityapplyatthewholefarmlevel,asdosomeaspectsofbiodiversityandwatermanagement.Animalhusbandryiscurrentlynotcomprehensivelyaddressed(i.e.onlywelfareconsiderations)intheUnileverSAC.

TheSACisdividedintoelevensections,whichrespectivelycoverrequirementsrelatedto:

1. Overallcontinuousimprovement2. Agrochemicalsandfuels3. Soils4. Water5. Biodiversity6. Energy7. Waste8. SocialandHumanCapital9. AnimalWelfare10. ValueChainandLocalEconomy11. Training

TheSACdocumentalsoprovidesasummaryofmetricsandriskassessmenttoolsthatmaybeemployed.

Thefollowingsectionsprovideanoverviewofthemandatoryrequirements(notincludinglegalcompliance,whichisanywaysmandatory)foreachoftheenvironmentallyrelevantsectionsoftheSACaswellasanimalwelfare.Foradditional“should”requirements,thereadermayrefertotheSACdocument.

OverallContinuousImprovement

• monitoringcompliancewiththeSACandpursuingcontinuousimprovement

AgrochemicalsandFuels(includingCropProtectionProductsandSyntheticFertilizers)

• recordsmustbekeptaccessibleforatleasttwoyears• strategiccommitmenttoIntegratedPestManagement• recordstojustifyagro-chemicalapplications(pestmonitoring,nutrientbalancecalculations)• agro-chemicalapplicationrecords• recordsofspillsandremedialactionstaken

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• sprayequipmentcalibrationandmaintenancerecords• agrochemicalstoresrecords• riskassessmentrecordsofallphasesofuse• trainingrecordsforhandlers• vendordetails• continuousimprovementwithrespecttophasingoutWHO1aand1bcompounds,includinga

phase-outplan

NutrientManagement

• decreasingnitrogenreleasetotheenvironment(Nitrogenbalancemetricprovided)• prohibitionagainstdisposingoffertilizersandtheirpackaginginsurfaceorgroundwaters• prohibitionofapplicationofuntreatedhumansewageorsewage-contaminatedwater• implementationofcropnutrientmanagementplanwhichaspirestooptimizenutrientuse

efficiency,including:o clearlyassignedresponsibilitiesforplanningandimplementingcropnutritiono considerationofsoil’schemical,biologicalandphysicalcompositiono locally-specifictargetsforcropnutritionbasedonnutritionalrequirements,desired

yieldandqualityo amountofNandPappliedjustifiedbygapbetweenactualandtargetnutrientsupply,

consideringallsourceso nutrientbalancecalculationso recordsofjustificationsforfertilizerapplicationso applicationtointendedcropareaonly,specificallyavoidingwaterbodies,wildlife

habitatsandplacesofworkorresidenceo documentedmeasurestoavoidNandPloss,includingapplicationtiming,choiceof

fertilizertype,soilconditions,andapplicationtechniques

PestManagement

• provisionofnecessarydataforuseof“Chemicaluse”and“Water”metrics,withtheaimofreducinguseofhazardousCPPs

• useofCropLifeInternationalstandardsforsafeandeffectiveuseofCPPSwheretheseexceednationallegislation

• prohibitionofhandlingorapplyingCPPsbychildrenunder18orpregnant/nursingwomen• prohibitionofCPPapplicationbypersonnelwithoutbasictraining• disposingofCPPcontainersingroundorsurfacewaters• re-usingCPPcontainersforanypurposeotherthanrecyclingbyaprofessionalvendor• documented,strategiccommitmenttoIntegratedPestManagement• IPMsysteminplace,including:

o responsibilitiesforplanningandcarryingoutpestcontrolandimplementingIPMo processesandcriteriaforchoosingsuitablegrowingareas,rotationsandvarietieso culturalcontrolofpeststopreventbuilduporsurvivalofinoculumso identificationofkeypestsandunderstandingoftheirlifecycle,withestablishedaction

thresholds

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o checkingactualinfestationlevelsagainstactionthresholdsusingappropriatesamplingmethod

o justificationofuseofanyCPPo documentationofinfestationlevelsandcontrolmeasureso choiceofCPPinformedbyenvironmentalandhumanhealthriskso useofpreferredlistofCPPsforthecrop,assuppliedbythecustomer

• applicationofCPPsinconformitywithlabelrequirements• assessmentofsuitabilityofCPPpriortoapplication• observanceofsafetyprecautionspriortoapplicationofCPP• applicationtotargetareasonly• safedisposalofCPPcontaminatedmaterial• proceduresinplacetodealwithspillsoraccidents• applicationrecordsmadeattimeofapplication• applicationrecordstraceabletofield,containingrationale,timing,ingredientnameandamount

applied

AgrochemicalSafetyandRiskAssessment

• riskassessmentcoveringriskstooperators,neighbours,consumers,water,soil,air,biodiversityandGHGemissions,takingintoaccount:use;transport;storage;handling;choiceofagrochemicalsandequipment;filling,cleaningandmaintenanceofequipment;handlinganddisposalofpackagingandcontaminatedmaterial

• useofappropriatepersonalprotectiveequipmentwhereindicatedbyriskassessment• applicatorknowledgeofuseofprotectiveequipment• accessibilityandunderstandabilityoflabeldetailstooperators• availabilityanduseofwashingfacilitiesafterhandlingagrochemicalsandcontaminatedmaterial• protectiveequipmentcleanedafteruse,separatelyfromotherwashingandnotbychildrenor

pregnant/nursingwomen• storageofprotectiveequipmentseparatelyfromagrochemicalsandpersonal/householditems• avoidanceofhealthandsafetyriskstobystanders• purchasedagrochemicalsinoriginalpackagingonly,withalllabeldetailslegible• purchasedagrochemicalsfromnationallyorindustryrecognizedvendorsonly• up-to-daterecordsofagrochemicalvendorsused• prohibitionofusingagrochemicalcontainerstostorefood,waterorfeed• reuseofCPPcontainersforsameproductonly,andonlywherespecificallyintendedforreuse• returnofCPPcontainerstosupplierswhereverpossible• CPPcontainerstriple-rinsedandpuncturedpriortodisposal• safedisposalofsyntheticfertilizerpackagingifsafereusenotpossible• off-farmdisposalofagrochemicalwastebylegallyapprovedcontractors

AgrochemicalandFuelStorageandEquipment

• agrochemicalapplicationequipmentmaintainedingoodworkingorder• agrochemicalapplicationequipmentcheckedbeforeandcleanedafteruse

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• equipmentdeliversdesiredflowratesandevendistributionasperavailablerecommendations• machineapplicatorscheckedatleastannuallyforcorrectspreadpattern• sprayerscheckedatleastannuallyforcorrectsprayvolumesandpatterns• appropriatenozzlesused,checked,andreplacedwheredamaged• storagefacilitiessuitablyconstructedandkeptdryandwellventilated• storageconstructedsoastominimizerisktopeopleandenvironment,includingduring

emergencies• storagekeptsecureandlockedtopreventaccessbychildrenandunqualifiedpersons• fertilizersnotstoredtogetherwithCPPsorfuel• recordskeptforallstoredagrochemicals• handlingandwashingareasdesignedsuchthatspillagecanbeconfined• agrochemicalsandcontaminatedmaterialshandledaspermanufacturespecifications,separate

fromfood,feed,livingquarters,andfoodpreparationareas• allfuelstoresconstructedofsuitablematerialsandlocatedsoasminimizerisks• storesofhighlyflammablefuelskeptsecure

Soils

• maintenanceofrecordsforsoilmanagementandconservationsystem,riskassessmentsandresultingactions,decisionsandactionsofimplicationsoflandexpansion,andmonitoringofsoilqualityparameters

• plansinplacetophaseoutuseofpeat,foresttopsoilandotheron-renewablematerialsforsubstratesandsoilamendmentswithinthreeyears

• provisionofdataforcalculating“Soilhealth”metric• prohibitionofdisposalofwastesandchemicalsonland,unlessexplicitlyallowedandsafefor

applicationonagriculturallandforfoodproduction• documentedsoilmanagementandconservationsysteminplace• evidenceprovingthatsoilmanagementandconservationsystemensures

o planningandcarryingoutofresponsibilitiesisassignedtoacompetentpersono cropsonlygrownonsoilsproventobesuitableforthatcrop/rotationo cropsuitabilityandenvironmentalimplicationsassessedwherelanduseisexpandedo riskofsoilerosionandlossisassessedandmanagedo riskofsoilchemicaldegradationisassessedandmanagedo riskofsoilcompactionisassessedandmanagedo riskofsoilcontaminationisassessedandmanagedo soilorganicmatterismanagedtoreachormaintainoptimumconcentrationo precautionarymeasurestakenwhererisksorevidencesuggestthisisnecessaryo correctiveactiontakenwhensoilshavebeendamaged

• Soilqualitymonitoringrequiredandrecordskeptforatleastfiveyearsfor:concentrationsofmacronutrients;pH;soilorganicmatter;salinity,nutrientsorheavymetalsifriskofcroporenvironmentaldamage

Water

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• maintenanceofrecords(2yearsminimum)forapplication(reason,applicationrateandamountrelatedtoevapo-transpiration,fieldcapacity,timeanddate,location,applicationtechniqueandoperator,calibrationandtestingofequipment)

• providedatanecessarytosupportcalculationof“Water”metric• prohibitionofusingstreamsandriversaswastedump• useandrechargeratesofwatersourcesforirrigationassessedtochecksourcesustainability• waterharvestingoperationsmonitoredtochecktheydonotaffectdownstreamusersincluding

highbiodiversityvalueareas• riskassessmentaimedatpreventingdirectandindirectsurfaceandgroundwaterpollution,

includingfrom:siltation;nutrients;agrochemicalsandotherchemicals;fuels,lubricantsandsolvents;contaminatedrun-off;livestock;humansewage;wastewater

• irrigationmanagementsysteminplacewhereirrigationisused,ensuring:timingandamountofirrigationistailoredtomeetcroprequirementsunderlocalconditions;applicationtechniqueisappropriatetowateravailabilityandensureshighestuseefficiency;mechanismsinplacetopreventoverapplication;unproductivelossesduetoevapo-transpirationminimizedthroughchoiceofapplicationtime/conditionswhensprinklingandoverheadirrigationareused

• irrigationwaterqualitymonitoredandmanaged• irrigationequipmentmaintainedingoodworkingorder

Biodiversity

• recordskept(atleast2years)showing:strategiccommitmenttoatleastonelocal/regionalbiodiversityinitiative;trainingrecordsforfarmersandfarmworkers

• provisionofdatatosupportcalculationof“Protectandimprovehabitatsforbiodiversity”metric• prohibitionagainstdestroyingimportanthabitatsonandofffarm,huntingorpoisoning

rare/endangeredspecies,andcollectingrare/endangeredspecies• developmentandimplementationoflocallyappropriateBiodiversityActionPlanthatincludes:

anassessmentoflocallyrelevantbiodiversityissues;apracticalplantoadvanceinatleastoneareaofbiodiversityconservation/protection/equitableuseoreducation

• hunting,fishingandgatheringofwildspeciesindesignatedareasonly• BiodiversityActionPlanmustsupportanyrare/endangeredspeciesorhabitatsfoundonlocal

farmland• anylandconversiongreaterthan1hamustbeproceededbyfullEnvironmentalImpact

Assessment,withallrecommendationsfollowed• farmersareawareofavailablegovernmentsupportforbiodiversitywork• allprohibitionsregardingbiodiversityaremadeknowntostaff,workers,hunters,fishermen,

wildharvesters,andmembersofthepublicallowedtooperateonthefarm

Energy

• recordsmaintained(atleast2years)for:EnergyManagementPlan;demonstrationoflackofalternativesifusingfireforlandpreparation;riskassessmentandresultingactions;operatortrainingrecords

• provisionofdatatosupportcalculating“Carbonfootprint”metric

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• prohibitionagainsttakingfuelfromimportanthabitatsorprotectedareaswherethisthreatensthesizeorintegrityofsuchareas

• implementationofdocumentedEnergyManagementPlandesignedtoreduceenergyconsumption

• health,safetyandenvironmentalriskassessmentfor:liquidfuelsandlubricanttransport,storage,handling,spillageanddisposal;machines,generators,boilers,pumps,powertools,etc.;electricalinstallationsandpowerlines;disposalofash

• wastesolvents,plastics,CPPs,medicalwaste,etc.notdisposedofinboilersorincineratorsunlessexplicitlyratedforthiskindofuse

• appropriateuseofpersonalprotectiveequipment,andoperatorknowledgeregardingitsuse

Waste

• recordsmaintained(atleast2years)for:demonstrationoflackofalternativesforusingfirefordisposalofharvestresidues,ifapplicable;trainingrecords

• prohibitionagainststorageofhazardouswastewhereunauthorizedpeoplehaveaccessorinlocationsmayforeseeableeventsmayresultinleakagesorlosstotheenvironment

• WasteManagementPlanmustbeplacethat:respectsthehierarchyofwastereduction,reuse,recycling,energyrecoveryanddisposal;includesestimatesofmajorwasteflowsfromthefarm;liststhewastereduction,reuseandrecyclingoptionsalreadyinplaceorunderinvestigation,androutesofenergyrecoveryordisposalforotherwastes

• wastestreamsmustbeseparated,storedandmanagedseparately• wastestoragelocationsmustnotcreatehealthorsafetyhazards• wastemustbeproperlylabeledandcontained• wherenationalregulationsdonotexistforstorageofhazardouswaste,guidanceorbest

availableoptionslocallymustbesought• hazardouswastestoresmustbeconstructedandlocatedsoastominimizerisks,including

duringemergencies• mustbeseparatestoragefordifferenttypesofhazardouswaste• proceduresareinplacetoensurepotentialreleaseofhazardouswastedoesnotincursignificant

humanorenvironmentalrisk• ifnonationalregulationsfordisposalofdifferenttypesofhazardouswaste,guidanceonbest

availableoptionslocallymustbesought• incineratorsandburningsitesfitforpurpose• caretakenthatwastematerialssuchasPVCandcertainotherplasticsareneverburntinopen

firesorlowtemperatureincinerators• on-farmwastedisposalsystemsandpracticesmustbedocumented,andriskstohumanand

environmentalsafetyassessedandimproved• allwasteburiedon-farmmustbecoveredinalayerofsoil,normallyatleast50cmthick• litterandotherwastemustnotbethrownintoareasthatmightflood• ariskassessmentmustbeperformedcoveringallhazardousfarmwastestreams,andthe

outcomeusedtoprioritizeactionstoprotectpeopleandtheenvironmentfromsignificanthazards

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AnimalWelfare

• recordsmustbemaintained(atleast2years)for:applicationrecordsforveterinarymedicines/CPPsgiventoanimals;trainingrecordsforanimalstockpersons;recordsofwithdrawalperiods;animalhealthplan

• prohibitionofdirectphysicalabuseandmentalsufferingofanimals• freedomfromhunger,thirstandmalnutrition• feedandwaterdistributedsoastopreventunduecompetition• husbandryenvironmentmusttakeintoaccountwelfareneeds,includingprotectionfrom

physicalandthermaldiscomfort,fearanddistress,andallowperformanceofnaturalbehaviours

• managersandstockkeepersarethoroughlytrained,skilledandcompetentinanimalhusbandryandwelfare

• animalsprotectedfrompain,injuryanddisease• husbandryenvironmentisconducivetogoodhealth• documentedhealthplan,developedinconsultationwithaveterinarysurgeon,isinplace• healthplanrecordsforananimalarekeptfortwoyearsafterdisposaloftheanimal• healthplanrecordsaretraceablebacktotheanimalandcontain:reasonsfortreatment;timeof

application;productname;amountapplied

Sincefarmingsystemsarehighlydiverse,andconditions,availabletechnologies,andbestpracticesmaybecontextspecific,theSACcommunicateswhatisexpectedintermsofsustainablepractices,butisnotspecificastohowtheseareachieved.However,Unileverdoesprovideon-lineimplementationguidesasasourceofinformationforsuppliersandfarmerstosupporttheireffortstocomplywiththeCode.

Iffarmersarealreadycomplyingwiththecodesandstandardsofothersustainabilityprograms,thentheUnilevercodeisheldasabenchmark,withadditionalrequirementsimplementedonlywheretheexistingstandarddoesnotmeetUnilever’sSACrequirements.Unilevermaintainsalistofrecognizedexternalcodesandstandards,whichisprovidedasanAnnextotheSchemeRulesdocument.Unileverwillalsoconsiderin-houseorindustry-levelsustainabilityschemesthattheirsuppliersuse.Insuchcases,suppliersmustbenchmarktheirprogramsagainsttheSAC,andanyitemsnotcoveredmustbecheckedthroughself-assessment.

Unilever,inpartnershipwiththesoftwarecompany“MuddyBoots,”hasdevelopedasystemcalled“GreenlightAssessments”tocollectinformationfromsuppliersregardingcompliance,calculatescores,andtrackcontinuousimprovementmetrics.FarmersorsuppliersareabletoentertheirdatadirectlyintotheGreenlightAssessmentssystem.

Unilevercurrentlyallowsuseofmassbalancesystemsbysuppliersinreportingamountsofsustainabilityproducedmaterials,subjecttocertainconditions.Theseincludetheintentiontodevelopsegregatedsupplychainsovertime,demonstrationthatsuchsegregationisnotfeasibleintheshortterm,andtheimplementationofanindependentlyverifiedadministrativesystemtopreventdoublecounting.

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Primaryprocessingplantsarechargedwithfarm-levelassessmentsamongthepoolofproducersfromwhomrawmaterialsaresourced.Randomsampleoffarmsareselectedforself-assessmentthroughtheGreenlightAssessmentssoftwaresystem,orbyaUnileverrepresentativeiftheGreenlightsystemisnotused.Farmersarecountedascompliantif:

• 100%ofmandatoryrequirementsaremet• 80%ofapplicable“musts”aremetintotal• 50%ofapplicable“musts”aremetforeachSACchapter

Self-assessmentsareverifiedthroughrandomsamplespot-auditsbyanindependentverificationbodycommissionedbyUnilever,weightedbysustainabilityriskassessmentsfortherawmaterialorigin.

Unileverhasprioritizedsustainablesourcingactivitiesforasubsetofkeycommodities.ThoseofrelevanceforthepriorityAlbertacommoditiesconsideredaresugar,canolaoil,dairy,andeggs(cage-free).Thecompanyreportssourcing55%ofitsagriculturalrawmaterialssustainablyasof2014,withgoalofachieving100%sustainablesourcingby2020.DiscussionwithaUnileverCanadaspokespersonindicatedthatUnileverislikelynotcurrentlysourcingAlbertaproduct,althoughthismaypotentiallychangeinthefuture.Forexample,UnilevercurrentlysourcesSaskatchewancanola,viaBunge,foruseinbothHellmann’sandBecelproducts.UnileverisalsoworkingtowardssustainablysourcingwheatintheUS,whichmaypotentiallybeexpandedtoCanadainthefuture.

GeneralMills

GeneralMillshasdeclaredagoaltosustainablysourcetherawmaterialsusedintheirproducts.Intheshort-term,thisgoalincludessourcing100%ofits10priorityingredientsby2020,whichwillrepresentmorethan50%oftotalannualrawmaterialpurchases.

Towardsthisend,thecompanyisinvolvedinseveralmulti-stakeholderinitiativestodevelopsustainablesourcingframeworksaswellaspilotprojects.Theseeffortstargetbothsmall-holderproducersindevelopingcountriesandlargescalegrowersindevelopedcountries.Forrawmaterialsupplychains,acombinationofcertification,verification,continuousimprovementandorigin-directinvestmentapproachesareemployed.

TheGeneralMillsrequirementsforsuppliersaredetailedintheGeneralMillsSupplierCodeofConduct.TheCodecovershumanrights,healthandsafety,environment,andbusinessintegrity.The“environment”sectionofthecodeisverygeneral,statingonlythat“AtGeneralMills,ourgoalistocontinuallyreduceourenvironmentalfootprint.Inadditiontocomplyingwithallapplicableenvironmentallaws,weexpectyoutocontinuallyimproveyourownenvironmentalperformance.”

AmongGeneralMillspriorityrawmaterialsforsustainablesourcingofdirectrelevanceforthecurrentanalysisareoats,wheat,sugarbeetsandcorn.Thecompanycurrentlysourcesoats,wheat,canolaandpulsesfromWesternCanada-primarilyfromSaskatchewanandManitoba.Effortsrelatedtorowcrops

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focusoncontinuousimprovement,asdemonstratedbasedonmeasurementofyear-on-yearprogresscomparedtobaselinedata.

Asof2014,GeneralMillsreportsthatover100NorthAmericangrowersareparticipatingintheirsustainablesourcingactivities.Growerparticipationrangesfrom10-25growersand50,000-125,000acresineachkeygrowingarea.Theentirecroprotationisconsidered,whichexpandsthefocusbeyondthecoreprioritycropstoalsoincludelentils,peas,canolaandpotatoes.Thepurposeofthesepilotactivitiesistosupportdevelopmentofascalableprogramandverificationprotocol.OncetheNorthAmericanprotocolandmethodologyiscomplete,thisapproachwillbereplicatedinotherregions.

IntheUS,GeneralMillsisamemberoftheUSFieldtoMarketinitiative,whichdevelopedtheUSFieldPrintCalculator.ItappearsthattheFieldPrintCalculatorisbeingemployedtosupporttheGeneralMillspilotprojectsanddatacollectionintheUS.InCanada,GeneralMillshasapartnershipwithSerecon,whichdevelopedtheCanadianFieldprintCalculator.ApilotprojectwasinitiatedinManitobaandSaskatchewantomeasurethesustainabilityofoatsandotherrotationalcropsincludingwheat,canola,andpulses,usingtheCanadianFieldprintCalculator.In2014,additionalpartnersjoinedthepilotproject,withtheaimofcollectingthreeyearsofbaselinedataregardingyields,soilcarbon,energyuseandgreenhousegasemissions.Oncethisinitialbaselineiscompleted,growersintheprogramwillbeabletomeasureandmakeimprovementsrelativetothebaseline.

GeneralMillshasidentifiedthefollowingspecificsustainabilityissuesrelatedtotheirpriorityrawmaterials:

• oats(GeneralMillswillsource100%ofoatsfromregionsdemonstratingcontinuousimprovementagainstindustry-basedenvironmentalmetricsby2020)o decliningsupplyUSwheat-GHGemissions,wateruse,biodiversity

• USsugarbeet

o GHGemissionso soilloss

• fluidmilk(by2020GeneralMillswillsourceallfluidmilkfromregionsthatdemonstrate

continuousimprovementbasedontheDairySustainabilityFrameworkintheUSandcomparablemetricsglobally)o GHGemissionso wateruseo waterqualityo animalwelfare

Molson-Coors

Molson-CoorsestablishedSupplierStandardsin2012.Thesestandardssetminimumexpectationsforsupplierswithrespecttoenvironmental,socialandeconomicsustainability.ThestandardsalsorefertoapolicyspecifictoAgriculturalBrewingIngredients.

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Suppliersareexpectedtotakeactionstolimittheenvironmentalimpactoftheiroperations,andtohaveappropriateprogramsinplacetofacilitateachievingthisobjective.Specificexpectationsofpotentialrelevancetofarmersinclude:

• Energyo optimizationofenergyefficiencyo useofcleanandlowenergysources

• EmissionstoAir

o workcollaborativelywithMolson-Coorstoreduceemissionstoairo providelifecycleGHGemissionsdataformanufactureandsupplyofproductsand

services(mayberequestedintenderdocumentationandinfluenceprocurementdecisions)

• NaturalResourceso complywithAgriculturalBrewingIngredientspolicy

• Biodiversity

o implementbiodiversityactionplansforhighriskcategorieso demonstratecompliancewithgoodpracticeinhabitatmanagementwhereactivities

significantlyimpactspeciesorhabitatso complywithAgriculturalBrewingIngredientspolicy

• Water

o quantifywaterconsumptionanddemonstrateplantoreduceconsumptionovertimeo undertakewaterriskassessmentandprogresstowardsimplementingriskmitigationfor

operationsinwaterstressedareas

• Wasteo legalcomplianceo collaborateinwastereductionactivities,worktoensurealternativestolandfilldisposal

• Pollution

o demonstratelegalcomplianceandgoodpracticeinmanagementofpollutiontoland,airorwater

TheMolsonCoorsSupplierStandardsfurtherspecifythatthecompanywillpreferentiallysourceagriculturalmaterialsfromproducerswhoembracetheirsustainabilitystandards,inparticularasdescribedintheAgriculturalBrewingIngredientsPolicy.Thispolicyprovidessixpillarswhichsuppliersmustrecognizeandadopt:

• ComplywithMolsonCoors-qualityspecifications

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• Adoptagriculturalpracticesthatwillstrivetomaintainsoilfertility,waterresources,airqualityandbiodiversity.

• Managenaturalresourcesinanefficientmanner• Recognizetheimportanceofaccreditationandwhereestablishedadoptaccreditationto

appropriatefarmassuranceprograms.• Meetfoodsafetyguidelinesandtraceabilityspecifications• Understandandaddressanyfutureguidelines,bestpractice,andlegislativechangesthatmay

arise.

BasedontheSupplierStandards,thecompanyhasafourstageprocessforidentifying,assessingandmanagingsustainableprocurementrisks.Thesestagesare:

• Stage1-Screeningo conductinitialscreeningofsupplierbasebyconsideringrisk,opportunityforchange,

andmagnitudeofimpactbysupplycategory,focusingon▪ energyuse▪ emissionstoair▪ naturalresources▪ biodiversity▪ water▪ waste▪ pollution▪ laborpractices▪ ethics▪ regulatorycompliance

• Stage2-Qualification

o supplierswillberequestedtoprovidedataandcommentsduringtenderingprocessonforthecategoryarea,asraisedinStage1

• Stage3–Supplierdevelopmento Successfully-appointedsupplierswillbeprovidedwithfurthersupportandguidance,

enablingimprovementsagainstthestandards

• Stage4-Audito Supplierswhoareidentifiedtorepresentthehighestpotentialriskmaybeauditedto

ensurethattheminimumexpectationsaremetandthatrisksarebeingmitigated.o Allsuppliersareexpectedtoprovideinformationaboutarawmaterialssocial,

environmentalandethicalperformance.Ifanyinformationprovidedwarrantsfurtherinvestigation,anindependentauditormaybecommissionedtoexaminetheinformationprovided,attheexpenseofthesupplier

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WhereMolsonCoorsseesanecessity,suppliersarerequirementtoimplementmanagementsystemstofacilitatecontinualimprovementandcompliancewiththestandards.Thenecessarycomponentsofthemanagementare:

• Demonstrationofcommitmenttoaccountability• Demonstrationofcompliancewithlegalandcustomerrequirements• Implementationofriskmanagementmechanismsspecifictotherequirementsofthestandard• Documentationdemonstratingconformitywiththestandardandapplicableregulations• Trainingandcompetencyprogramstosupportmeetingthestandardrequirements• Demonstrationofcontinualimprovement

Asof2014,theSupplierStandardsareanon-goingrequirementfor100%ofMolson-Coorsglobalsupplybase.Inaddition,thecompanyisusingaSupplierQualityScorecardthatincludessustainabilitymetricstotracktheenvironmentalperformanceofTier1suppliersonaquarterlybasis,andtorewardthosewhoachievethebestresults.TheMolson-CoorsSupplierStandardsmustbeimplementedthroughoutthesupplychain,includingbysub-contractors.ThisprogrammaybeofrelevanceforAlbertabarleyproducers.

Loblaw

LoblawisgenerallyregardedasproactiveinsustainablesourcingamongthemajorCanadiangroceryretailers.ThecompanyisamemberoftheCanadianRoundTableonSustainableBeefandalsoemployssustainablesourcingstrategiesforpalmoil(RoundTableonSustainablePalmOil)andseafood(MarineStewardshipCouncilandAquacultureStewardshipCouncil.)Withrespecttotheformer,LoblawistheretailrepresentativeintheMcDonalds-ledpilotprojecttocreateaverificationprocessforsustainablebeef.TheseactivitiesareorganizedundertheumbrellaoftheLoblawin-house“SourcingwithIntegrity”program.

LoblawhasmadethefollowingtwopubliccommitmentsregardingsustainablesourcingthataredirectlyapplicableforasubsetofAlbertafarmers:transitionthePCBlueMenulineofeggstofree-run(todate,allPCandPCOrganicseggsarefreerun)andtosourcefreshporkfromvendorsthathavetransitionedtoloosehousingby2022basedonanimalwelfareconsiderations.Althoughthecompanydoesnotcurrentlyhavesustainablesourcingactivitiesimplementedforthecommoditiesofconcerninthisstudy,itwasdeemedinterestingtoincludeLoblawasanexampleofactivitylevelsintheCanadiangroceryretailsector.

Kellogg’s

Kellogg’shascommittedtoresponsiblysourceitstopteningredientsandmaterialsby2020.Oftheseingredients,thoseamongthekeyAlbertacommoditiesconsideredinthecurrentanalysisarewheat,oats,potatoesandsugarbeets.AllsuppliersofthesematerialswillberequiredtomeetKellogg’s

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sustainabilityguidelines,whichincludeacombinationofcertificationanddocumentationofcontinuousimprovement.

Kellogg’s’SupplierCodeofConductwasfirstdevelopedin2009andsubsequentlyupdatedin2014.SupplierstoKelloggarerequiredtoverifycomplianceoftheirownsupplychains,andallowKelloggoranauthorizedthirdpartytoconductauditstoverifycompliance.

TheCodereferstothefollowingareas(specificdetailsprovidedhereforenvironmentalsustainabilityconsiderationonly):

• BusinessIntegrityo legalcomplianceo anti-corruptiono conflictsofinteresto businessgiftso faircompetitiono confidentialinformation

• Quality,HealthandSafety

o productsafetyo workenvironment

• LabourStandards

o humanrightso noinvoluntarylabouro childlabouro fairwageandworkingtimeo noharassmento nodiscriminationo righttoorganizeo workdocumentation

• ManagementPractices

o systematicapproacho supplierdiversityo recordkeepingo complianceverification(suppliersmustverifycomplianceofsupplychainagainst

SupplierCode)o reportingconcerns

• Sustainability/LandUse

o Environment▪ legalcompliance

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▪ implementationofoperatingpractices,farmingpracticesandagriculturalproductionsystemsthataresustainable

▪ activitiestoreduceoroptimizeuseofenergy,water,andagriculturalinputs,reduceGHGemissions,minimizewaterpollutionandwasteincludingfoodwasteandlandfillusage

o Initiatives▪ suppliersshould(insomecasesmust)bemembersofrelevantmulti-

stakeholderinitiativessuchasRSPO(palmoil),BonSucro(sugar),RTRS(soy),WCF(cocoa),FieldtoMarket(UScommodityrowcrops)

o LandRights▪ mustrespectlandrightsofwomenandcommunitiesaffectedbytheir

operations,ensuretransparentreportinganddisclosureofconcessionagreements,andensurefairnegationsonlandtransfers

IntheUS,KelloggworkswithcornfarmersusingtheUSFieldprintCalculator.Withfouryearsofbaselinedata,thisworkisnowfocusedonidentifyingandcommunicatingbestpractices.Thecompanyisnowexpandingitsfocustowheat,includinginCanada.

TheKelloggSupplierCodeisquitegeneral.Intheabsenceofspecificrequirementsandverificationmechanisms,Albertafarmersmaybechallengedinsatisfyingthecoderequirements.GivenKellogg’scurrentcollaborationwithUSfarmersusingtheFieldprintCalculator,itispossiblethatsimilarimplementationoftheCanadianFieldprintCalculatormayberequiredofAlbertafarmersinthefuture.

Sysco

Syscoisamajorfoodservicecompany,withinternationalpresence.TheSyscoCanadawebsiteprovidesverylittlecontentrelatedtosustainabilityinitiatives.However,theUSwebsitedoesprovideaconsiderablevolumeofinformationregardingSysco’ssustainabilityinitiatives.ItisnotclearwhetherornotthismaterialisalsocurrentlyrelevantinCanadaatpresent.

SyscoUSemploysaSupplierCodeofConductcoveringhumanrights,healthandsafety,andenvironmentalstandards.AllsuppliersareexpectedtomeetthestandardsdescribedbytheSupplierCodeofConduct.AccordingtotheSysco(US)website:wedemandthatsuppliersofSyscoBrandgoodsmeetthehigheststandardsofaccountabilitywiththeirsocial,agriculturalandanimalwelfarepractices.Werequireanimalwelfareandqualityassuranceauditsandconductfollow-upauditstoensureimprovementplansareimplemented.”

SyscohasdevelopedaSustainable/IntegratedPestManagement(IPM)programtopromotetheresponsibleuseofinputstoagriculturalproductionofSyscoBrandcannedandfrozenfruits,vegetables,andpotatoesaswellasuseofcovercrops,croprotations,andnaturalpestcontrolpractices.This

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programmaypotentiallyberelevantforAlbertapotatofarmers.Sysco-requiredIPMpracticesmustbeappliedonthewhole-farmlevel,ratherthanacreagedevotedsolelytoproductionforSysco.Asof2013,Sysco’sIPMprograminvolved180foodfactoriesandcloseto900,000cultivatedacres.Syscosimilarlyimplementswaterconservation,agriculturalwaste,energy,andanimalwelfare-relatedrequirements.

AmongSysco’sstatedrequirementsor“encouragements”arethatparticipatingsuppliersaddressthefollowingareas:

• IntegratedPestManagement(IPM)o trackpesticideuse,withthegoalofreducingquantityortoxicityo protectandcreateandhabitatandforagesourcesonthefarmforpollinators

• WaterConservation

o measureallwaterusedforirrigation

• AgriculturalWasteo measureandreporthowmuchvegetativewastetheyreuse

• Energy

o reportfuelconservationfromin-fieldoperations

• AnimalWelfareo completeongoingself-assessmentsofanimalcareprograms,andallowunannounced,

third-partyauditsoftheirfacilitiesaswellasbySyscoQAemployees

Inaddition,Syscohasexpressedthatitisworkingwithporksupplierstowardsthecreationofagestationcrate-freeporksupplychain.

Costco

TheDirectorofEnvironmentalAffairsforCostcoCanadaindicatedinreplytoanemailquerythatCostcoCanadasustainablesourcingactivitiesfollowthoseofCostcoUS.TheCostcoUSwebsitedescribesCostcosustainabilityactivities–mostofwhichfocusonCostcostore-levelconcerns.OneconsiderationthatisrelevantforsomeAlbertafarmersaretheCostcopoliciesonanimalwelfare.Costcomayundertakeauditsofegglaying,dairycow,pork,poultry(chickenandturkey)andvealproductionfacilities.

TheCostcoanimalwelfarepoliciesalsostipulate:

• dairyo notaildockingo standardsfordehorning

• veal

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o calvesmaynotbetetheredinstallo minimum2calvesperstallafter8-10weekso stallsmustallowcalvestoturnfreely,liedown,andmaintainnormalpostureso calvesmustbeinspectedatleasttwicedailyforcleanlinesso properventilationmustbeassuredo vealbarnsmusthaveatleastoneannualthird-partyauditforhumanehandlingo vealbarnsmustbevisitedbyaveterinarianatleastonceeverygrow-outcycleo electricprodsmaynotbeusedo non-ambulatoryanimalsmaynotbeusedinproduction

• pork

o completephaseoutofgestationcratesby2022o allhogshousedingroupswithaccesstosafetyzonesby2022

• poultry

o hatcheryandgrow-outfacilitiessubjecttoaudito workingtowards100%cage-freeeggs

WalmartandtheSustainabilityConsortium

Walmartsustainabilityinitiativeshavebeenamongthemostwidelypublicized,inlargepartduetotheambitiousgoalscommunicatedbyWalmartaswellasthesignificantfundingallocatedbythecompanytosupporttheSustainabilityConsortium.Walmartwasamongthefirstofthemajorretailerstoannounceplanstobegintoapplyasustainabilityindextorankitssuppliers,andtopreferentiallysourcefromsupplierswithhigherranking.AmongWal-Mart’spublicsustainabilitycommitmentsistosource70%oftheproductsitsellsinNorthAmericafromsuppliersemployingtheWalmartSustainabilityIndexby2017.

TheWalmartSustainabilityIndexcollectsinformationfromsuppliersfor:

• EnergyandClimate–ReduceCostsandGreenhouseGasEmissionso measurementofcorporategreenhousegasemissionso reportinggreenhousegasemissionstotheCarbonDisclosureProjecto totalgreenhousegasemissionsreportedinthemostrecentlycompletedreporto settingpubliclyavailablegreenhousegasreductiontargets

• MaterialEfficiency-ReducingWasteandEnhancingQuality

o totalamountofsolidwastegeneratedfromthefacilitiesthatproduceasuppliersproduct(ifmeasured)

o existenceofpubliclyavailablewastereductiontargets,andtargetdetailso totalwateruseforfacilitiesthatproduceasuppliersproducts(ifmeasured)o existenceofpubliclyavailablewaterusereductiontargets,andtargetdetails

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• NaturalResources:ProducingHighQuality,ResponsiblySourcedRawMaterialso establishmentofpubliclyavailablesustainablepurchasingguidelinesfordirectsuppliers

thataddressenvironmentalcompliance,employmentpractices,andproduct/ingredientsafety

o any3rdpartycertificationsforproductssoldtoWalmart

• PeopleandCommunity:EnsuringResponsibleandEthicalProductiono knowledgeoflocationsof100%offacilitiesthatproducetheproductssoldtoWalmarto evaluationofproductionqualityandcapacitypriortobeginningabusinessrelationship

withamanufacturero implementationofaprocessformanagingsocialcomplianceatthemanufacturinglevelo effortstoresolveanysupplybasesocialissuesthatareidentified,alongwith

documentationofspecificcorrectionsandimprovements

UndertheNaturalResourcessection,theWalmartSustainabilityIndexinquireswhetherornotthesupplierhasestablishedpublicallyavailablesustainablepurchasingguidelinesfordirectsuppliersthataddress,amongotherthings,environmentalcompliance.Asimilarqueryrelatestoachievementofthirdpartycertification.Thesequestionsindicatethat,ratherthanestablishaprescriptivesetofsustainablesourcingcriteriaforimplementationacrossproductgroups,Walmartratherleavesittosupplierstoensurethatappropriatesystemsareinplace.Here,thereislikelysubstantialcomplementaritieswiththeworkoftheWalmart-supportedSustainabilityConsortium.

ThemandateoftheSustainabilityConsortiumistodevelopscience-baseddecisionsupporttoolsforimprovingthesustainabilityofconsumerproducts.Itcurrentlyincludesover100oftheworld’slargestorganizations,manyoftheseactiveinthefoodsector(forexample,Cisco,CocaCola,Cargill,Dow,DuPont,Kellogg’s,Mars,GeneralMills,Campbell’sandHershey’s).

TheSustainabilityConsortiumisdevelopingaSustainabilityMeasurementandReportingSystem,whichistailoredtotheproductcategorylevel.ThedecisionsupportmaterialforeachproductcategoryconsistsofSustainabilityInsightsandProductSustainabilityToolkits.TheSustainabilityInsightsarepublicallyavailablefordownload.Theyprovideanoverviewofkeysupplychainvariablesforsustainabilitymanagement.

ProductSustainabilityToolkitsareavailabletoTSCaffiliatesonly.Theseareinteractivetoolsthathighlightimportantsustainabilityissuesforeachproductcategory,describemitigationmeasures,andspecifyKeyPerformanceIndicatorsfortrackingandmeasuringperformance.Thesearelargelychecklistmetricsthatcompaniescanusetoassesstheirsupplychainpartnersforcompliance.

TheFood,Beverage,andAgricultureSectorWorkingGroupwasthefirstsector-levelgrouptobeestablished.TheWorkingGroup’smandateistoimprovetheenvironmentalandsocialsustainabilityofglobalagriculturalsupplychains.TheWorkingGrouphasdevelopedproductcategory-specificdecisionsupportmaterialfornumerousproductcategoriestodate.ThoseofrelevanceforAlbertaincludebeef,chicken,eggs,pork,grains,barleyandmalt,sugar,beans/lentils/peas,bread,andpotatoes.

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DuringadiscussionwithaCanadianWalmartsupplier,itwassuggestedthatWalmarthascurrentlyscaledbackitssustainabilityinitiativesinCanada,andrelocatedhumanresourcecapacityinthisregardtotheirUSheadquarters.InquiriesdirectedtoWalmartCanadatodiscusstheiractivitieswerenotrepliedto,henceitwasnotpossibletoverifythisinformation.

ADM

ADMisanagriculturalprocessorwithglobalpresence.Asamajornexuspointbetweenrawmaterialproducersandcustomers,ADMishenceideallypositionedtomediatetherequirementsofsustainablesourcingprogramsthatareapplicableatthefarmlevel.Indeed,ADMisactivelyinvolvedinseveralsuchinitiatives.Forexample,intheUS,ADMisinvolvedintheUSFieldtoMarketinitiative.ADMalsoimplementsUnilever’ssustainabilityrequirementsforprocuringsoyoilusedinHellmann’sbrandmayonnaiseintheUS.InEurope,ADMOilseedsproductionfacilitiesareISCCPluscertified,whichenablesthemtoprovidecertifiededibleoilstocustomers.

InCanada,theADMfacilityinLloydminsterisADM’sfirstcertifiedsustainablelocationinNorthAmerica.BasedontheISCCsystem,theSustainableGrowersprogramimplementedbyADMinAlbertaenablesgrowersabletodemonstratecompliancewithprogramrequirementsaccesstomarketpremiums.Thisprogramisvoluntary,andiscurrentlyusedbygrowerstofacilitateaccesstoEUbiofuelsmarkets.However,theprogramcouldpotentiallybeappliedtootherrawmaterials,includinganimalfeeds.Participantsintheprogramundergoself-assessment,followedbyADMauditand,potentially,third-partyaudit.ADMLloydminsterwascontactedtorequestspecificdetailsregardingtheSustainableGrowersprogram.Unfortunately,thesewerenotmadeavailable.DespitethepaucityofinformationregardingADM’ssustainablesourcingactivitiesinCanada,itwasnonethelessdecidedtoincludethecompanyintheanalysisasanexampleofaCanadianprocessorengagedinsustainablesourcingactivities.

Pepsico

PepsicohasdevelopedaGlobalSupplierCodeofConductthatsuppliersareexpectedtofollow.TheCodedetailsthefollowing14principlestowhichsuppliermustadhere:

1.Maintainawarenessandcomplywithallapplicablelawsandregulationsofthecountriesoftheiroperation.

2.CompetefairlyforPepsiCo’sbusiness,withoutpayingbribes,kickbacksorgivinganythingofvaluetosecureanimproperadvantage.

3.Encourageadiverseworkforceandprovideaworkplacefreefromdiscrimination,harassmentoranyotherformofabuse.

4.Treatemployeesfairly,includingwithrespecttowages,workinghoursandbenefits.

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5.Prohibitallformsofforcedorcompulsorylabor.

6.Prohibituseofchildlabor.

7.Respectemployees’righttofreedomofassociationandcollectivebargaining,consistentwithlocallaws.

8.Providesafeandhealthyworkingconditions.

9.Carryoutoperationswithcarefortheenvironmentandcomplywithallapplicableenvironmentallawsandregulations.

10.Maintainaccuratefinancialbooksandbusinessrecordsinaccordancewithallapplicablelegalandregulatoryrequirementsandacceptedaccountingpractices.

11.Deliverproductsandservicesmeetingapplicablequalityandfoodsafetystandards.

12.SupportcompliancewiththeSupplierCodebyestablishingappropriatemanagementprocessesandcooperatingwithreasonableassessmentprocessesrequestedbyPepsiCo.

13.ObservePepsiCo’spoliciesregardinggiftsandentertainmentandconflictsofinterestwhendealingwithPepsiCoemployees.

14.ReportsuspectedviolationsoftheCode.

Withrespecttoenvironmentalconsiderations(Principle9),theCodeisverygeneral,statingonlythat“Thepotentialenvironmentalimpactsofdailybusinessdecision-makingprocessesshouldbeconsideredalongwithopportunitiesforconservationofnaturalresources,recycling,sourcereductionandpollutioncontroltoensurecleanerairandwaterandtoreducelandfillwastes.”

Elsewhere,PepsiCo’s2014CSRdescribesthecompany’sfivekeyenvironmentalgoalsandassociatedvaluechainactivities,whichareto:

• Protectandconservewatero workwithfarmerstodevelopeffectivewatermanagementplansforaddressingwater

riskandsharebestpracticewater-efficientdripirrigationmethods

• Minimizeimpactfrompackaging• Eliminatewastetolandfills• ReduceGHGemissions(includingalongthevaluechain)• Supportsustainableagriculture

o PepsiCo’sSustainableAgriculturePolicyissupportedbythecompany’sSustainableFarmingInitiative(SFI)

PepsiCo’sSustainableAgriculturePolicydetailsmorespecificprinciplesforsustainableagriculture.Accordingtothispolicy,sustainableagricultureshould:

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• Integrateenvironmental,social,andeconomicsustainabilitywithinagriculturalproduction.• Complywithgovernmentallaws,regulations,andindustrystandards.• Integrateapprovedandcrediblescienceandtechnology,whereapplicable.• Enablelocalfarmingcommunitiestoprotectandimprovetheirwell-beingandtheenvironment

inwhichtheyoperate.• Optimizetheuseofresourcestoimprovefarmproductivityandpreservesoilfertility,waterand

airquality,andbiodiversityinagriculturaloperations.• Supportincreasedfarmproductivity,improvingcropandlivestockyieldsandnutritionalquality

tomeetexistingandfutureglobalbusinessgrowth.• Safeguardthecareoffarmanimalsthatareanintegralpartoursupplychain.

Thecompanyhasdevelopedasetofbroad-basedobjectives,withassociatedinitiativesandprojectstoimprovesustainabilitywithintheiragriculturalsupplychain.Goalsandprogramsdifferbycommodity,geographyandbusinessrelationship.ProgramsmaybeimplementedbyPepsicowheretheyhaveadirectrelationshipwithagriculturalproducers,orthroughthirdparties.Theirbroadenvironmentalobjectivesforagriculturalsupplychainsare:

• Agrochemicalandnutrientmanagemento optimizeuseofpesticides,nutrientsandotheragrochemicalso supportsustainablepracticesthatsubstitutenaturalcontrolsforsomeagrochemicals,

fosterecosystembalance,reduceGHGemissionsandmitigatecroplosses

• Airqualityo minimizeairemissionsinfarmoperationsbyminimizingcropprotectionproductdrift,

reducingparticularmatterandeliminatingodors

• Animalcareo ensureproperpractices,includingnutritiousdiets,safeandappropriateliving

conditions,andmedicalcare

• EnergyandGHGmanagemento optimizeenergyuseincropproductionandfieldactivities,andmanageherdsand

agriculturalwastesoastoreduceGHGemissions

• Soilconservationandpreservationo preserveandimprovesoilhealth,minimizeerosion,andavoiddamagefromdisease,

compactionandcontamination

• Watermanagemento optimizethewaterfootprintofcropandlivestocksystems,andresponsiblymanage

run-offrisksofpollutionorcontaminationofgroundorsurfacewatero developeffectivewatermanagementplanstoreducerisk

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PepsiCo’sSFImaybeofparticularrelevanceforAlbertaoat,sugarbeetandpotatoproducers.

CharacterizationofCommonalitiesandDifferencesbetweentheSelectedSustainable

SourcingSchemes

CharacterizationbySchemeType

Oftheshort-listed18schemes,themajorityarebestcharacterizedascompliancechecklistinitiatives(Table3).Thiscategoryreferstoprogramsinvolvingselforthird-partyassessmentagainstanestablishedlistofdesirableattributesorbestpractices.Specifically,halfoftheschemesareassignedtothiscategory.Incontrast,onlyoneoftheschemes(theCanadianFieldprintCalculator)isassignedsolelytothe“calculator”category,andtwo(ISCC/ISCCPlusandADM’sSustainableGrowerProgram,whichisbasedonISCC)tothe“certification”category.Twooftheprograms(theLoblaw“SourcingwithIntegrity”programandCostco’sanimalwelfareaudits)donotcorrespondtoanyofthesethreegeneralcategories.BothGeneralMillsandKelloggsdescribetheirsustainablesourcingactivitiesasinvolvingacombinationofapproacheswhichvariouslyrequireuseofcalculators,certification,andcompliancechecklistsasappropriatetotheirspecificactivities.Ingeneral,however,thecompliancechecklistapproachisclearlytheprevalentapproachtosustainablesourcingamongthereviewedschemesatpresent.

Acommonfeatureacrossmostoftheschemes-whetherbasedoncompliancechecklists,certification,theuseofcalculatorsorotherwiseistheemphasisonsupportingcontinuousimprovement.Dependingonthescheme,thisimprovementmightbedemonstratedbycomparisonagainstanindustrybenchmarkovertime,comparisonagainsttheperformanceofone’sownfarmovertime,implementationofriskassessmentsandreportingonprogresswithrespecttomitigationmeasures,ordemonstrationofprogresstowardsbestpractices.Indeed,themajorityofprogramsandtheirrespectivecriteriafocusonoutcomesratherthanprescriptive,quantifiableperformancelevelsforspecificindicators.

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Table3.Characterizationofschemesbytype.

Calculator Certification

Program

Compliance

Checklist

Initiative

Other Notes

CanadianFieldprint

Calculator

x

SAIFSA2.0 x ISCCandISCCPlus x PSI x CRSB notyetdeterminedCRSC notyetdeterminedDSFandDairy

proAction

x environmentalfarmplanforenvironmentmodule

NestleSupplier

Code

x

UnileverSAC x GeneralMills x x x combinationofapproaches

employedMolson-Coors x Loblaw x animalwelfare(alsoa

participantinseveralthird-partyinitiatives,butnotforconsideredcommodities)

Kelloggs x x x combinationofapproachesemployed

Sysco x Costco x auditsforanimalwelfareWalmart x supplierrankingbasedonindex

performanceADM(Sustainable

GrowersProgram-

ISCC)

x programdetailsnotavailable,butbasedonISCC

Pepsico x goalsandprogramsdifferbycommodity,geography,andbusinessrelationship

CriteriaandIndicatorsEmployedbytheSustainableSourcingSchemes

Ageneralschemestructuretodescribedifferentsustainablesourcingschemesisthe“Principles,Criteria,andIndicators”structure.Principlesrefertothegeneralgoaltobeachieved–forexample,sustainableproductionofagriculturalrawmaterials.Criteriarefertowhatisrequiredtoreachthedefinedgoal.Withrespecttothegoalofsustainableproduction,criteriamightbedefinedwithrespecttodiverseaspectsofproducingagriculturalrawmaterials,suchasmaintainingwaterandsoilquality.Indicatorsrefertospecificmeasurestoassesstheextenttowhichacriterionisbeingmet.

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Whiletheschemesselectedforanalysisgenerallysharecommonprinciples,theyarequitevariableintheextenttowhichtheyarticulatetheirrespectivecriteriaandindicators.Somearespecifictothecriterialevelonly–forexample,requiringthatfarmersachievetheobjectiveofmaintainingsoilorwaterquality–whereasothersarequitedetailed,withspecificindicatorsforvariousaspectsofsatisfyingagivencriterion.

Theevaluationofcriteriaandindicatorsfocusedonlyonthosethatarespecificallyapplicabletofarm-levelproduction.Insomecases,companiesmayalsoapplyothercriteriaandindicatorselsewhereinthevaluechainaspartoftheirsustainablesourcingprograms(forexample,forprocessors),orparticipateininitiativesrelatedtocommoditiesnotincludedinthisanalysisthathavetheirownrespectivecriteriaandindicators.Forexample,aspartoftheirSourcingwithIntegrityprogram,LoblawsourcesfisheriesandaquacultureproductsbasedontheMarineStewardshipCouncilandAquacultureStewardshipCouncilprograms,andpalmoilbasedontheRoundtableforSustainablePalmOilprogram.Thesewerenotconsideredhere,sincetheydonotapplytospecificcommoditiesoractivitiesofinterestinAlberta.

Awidevarietyoffarm-relevantcriteriaandindicatorsisobservedacrossthe18schemes(Table4).Ingeneral,thereisconsiderablevariabilityintheterminologyusedtodescribeotherwisesimilarcriteriaandindicators,aswellasvariationintheactualindicatorsemployed.Someschemesemployquitecomprehensiveindicatorsuitesforsomeorallcriteria,whereasothersmayhavemuchsmallerindicatorsuites,orlistcriteriaonlywithnosupportingindicators.Forexample,differentschemesmayhavequitedifferentindicatorrequirementsregardingdemonstratingcompliancewiththecriterionofmaintainingsoilquality.Dependingonthescheme,thesemayincludeimplementationofmeasurestopreventsoilerosionbywindorwater,soilcompaction,lossofsoilorganicmatter,maintenanceofsoilnutrientsandmicrobialactivity,preventionofsoilpollution,on-goingmeasurementsofsoilhealthindicators,etc.Suchheterogeneityinmethodsandterminologyinlifecycle-basedenvironmentalaccountancy,andthepotentialburdensthiscreatesforindustry,wasakeymotivatingfactorbehindon-goingmethodologicalharmonizationeffortsinternationally.Itislikely(anddesirable)thatsimilarharmonizationeffortswilloccurforsustainablesourcingprogramswithrespecttoterminologyandrequirementsrelatedtocriteriaandindicators.Indeed,industry-ledmulti-stakeholderinitiativesliketheCRSBandCRSCare,inpart,motivatedbythisneed.

Forthesakeofcomparability,indicatorsrelevanttooverarchingcriteria(forexample,“soilmanagement”)weregroupedundercommoncriteriaheadingswhereverpossible.Followingcharacterizationofcriteriausebyscheme,itwasthenpossibletoassesscommonalitiesanddifferencesinthoseusedbythedifferentschemes.

Atotaloftwelveoverarchingcriteriaforenvironmentalsustainabilityconcernswereidentified,aswellasadditionalcriteriaforanimalhealthandwelfareandsocio-economicindicators.Thenumberofenvironmentalcriteriaofrelevanceatthefarmlevelforthecommoditiesofconcernthatareemployedbydifferentschemesvariedfromnonetoasmanyasnineofthetwelvecriteria.Themajorityofthecurrentlyoperationalschemesapplyatleasthalfofthese12criteria.

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Thereisconsiderableconsistencywithrespecttousageofacoresuiteofcriteria.Specifically,theseare:WaterManagement;EnergyUse/Efficiency;Climate;SoilManagement;BiodiversityConservation/Enhancement;WasteManagement;CropProtectionManagement;andNutrientManagement.IndicatorsspecifictoAirQuality,NaturalResourcesManagement,LandUse,andPollinatorProtectionweremuchlessprevalent.Notably,indicatorsforAnimalHealthandWelfareaswellasavarietyofsocio-economicindicatorswerealsoappliedinalargenumberoftheschemes.

Ageneralobservationhereisthatfarmerswillbebetterenabledtosatisfytherequirementsofspecificsustainablesourcingschemeshavingcleardescriptionsofcriteriaandindicators,andspecificguidancewithrespecttothepracticeswhichwillenablesatisfactoryindicatorperformance.SchemessuchasUnilever’sSACareverydetailedbothintermsofrequirements(outcomes)thatmustbesatisfiedforeachindicator.Here,thedemandsonfarmersarecertainlyhighintermsofthesetofrequirementsthatmustbemet.Atthesametime,claritywithrespecttorequiredoutcomesmeansthatundertakingtoachievecomplianceissimplified.Thisisquitedifferentfromthoseschemeswithverygeneralambitionsregardingimprovingsustainabilityoutcomesbutlittleinthewayofspecificrequirements.Difficultieswithrespecttohowtosatisfyvaguerequirementsmaywellhinderboththeefficacyoftheschemeandthecapacityoffarmerstodemonstratecompliance.

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Table4.Criteriaemployedbytheselectedschemes.

WaterM

anagem

ent

EnergyUse/Efficie

ncy

Clim

ate

SoilM

anagem

ent

Biod

iversityCo

nservatio

n/En

hancem

ent

WasteM

anagem

ent

Crop

ProtectionMan

agem

ent

NutrientM

anagem

ent

AirQ

uality

NaturalR

esou

rcesM

anagem

ent

Land

Use

Pollina

torP

rotection

TOTALENVIRONMENTALCRITERIA

EMPLOYED

Anim

alHealth

and

Welfare

Socio

-econo

micIndicators

CanadianFieldprintCalculator x x x x 4 SAI x x x x x x x x x 9 ISCCandISCCPlus x x x x x x x 7 xPSI x x x x x x x x 8 CRSB x x x x x x x x 8 x xDSFandDairyproAction x x x x x x x 7 x xNestleSupplierCode x x x x x x x 7 x xUnileverSAC x x x x x x x 7 x xGeneralMills x x x x x x 6 x xMolson-Coors x x x x x x 6 xLoblaw x Kelloggs x x x x x x 6 xSysco x x x x 4 x xCostco x Walmart x x x x x 5 xADM(SustainableGrowersProgram-ISCC)

x x x x x x 6 x

Pepsico x x x x x x x x x 9 x xFrequencyofCriteriaUse 1

4

1

3

1

1

1

1

1

1

1

1

1

0

8 3 2 2 1 9 1

2

Itshouldbenotedthatnumerousindicatorsareassociatedwiththecriteriaemployedbytheselectedschemes.Someschemes,suchasthePotatoSustainabilityInitiative,providedetailedindicatorsforeachcriteria,whereasotherschemesprovidefew(ifany)specificindicators.Thefollowingsectionlistssomeoftheindicatorsvariouslyassociatedwiththeeightcriteriathataremostcommonlyemployedamongtheselectedschemes.Onlythoseindicatorsthatareemployedbyatleasttwooftheschemesarelisted.

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Again,althoughthespecificindicatorsemployedbyeachschememaybedescribedusingslightlydifferentterms/language,theyaregroupedwherepossible.

Onecommonfeatureacrossmanyoftheschemesandcriteriaistherequirementfordetailedmanagementplansandrecords.ThisisparticularlytrueforthecriteriaWaterManagementandBiodiversityConservation/Enhancement.Alsoofnoteisthatcertaincriteria(forexample,WaterManagement,SoilManagement,andCropProtectionManagement)tendtohaveeitherlargeindicatorsuitesforagivenscheme,orhighdiversityofindicatorsamongschemes.Incontrast,thenumberand/ordiversityofindicatorsforsomeofothercriteria(forexample,EnergyUse/EfficiencyandWasteManagement)aremuchsmaller.

WaterManagement(n=14)• managementplansandrecords(n=8)• waterusereductionstrategiesandtargets(n=6)• riskassessmentandmitigationstrategies(n=3)• useofoptimizedirrigationmethods(n=2)• monitoringirrigationsystemefficiency(n=3)• irrigationsystemmaintenance(n=2)• basisforschedulingirrigation(n=2)• avoidanceofover-extraction(n=2)• avoidanceofwaterpollution(n=2)• preventionofrun-off(n=2)

EnergyUse/Efficiency(n=13)

• managementplansandrecords(n=3)• energyusereductionstrategiesandtargets(n=4)

Climate(n=11)

• measurestoidentify,measure,monitorandreportGHGemissions(n=2)• settingGHGreductiontargets(n=2)• avoidanceofproductiononlandwithhighcarbonstocks(n=2)• typesandamountsoffertilizers,pesticidesandenergyused(n=2)

SoilManagement(n=11)

• managementplansandrecords(n=3)• soilhealth(n=2)• soilsamplingandmonitoring(pH,SOM,salinity,nutrients,heavymetals)(n=3)• soilorganicmatterandstructure(n=3)• compactionmonitoringandmitigation(n=4)• avoidanceoferosion(n=2)

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• cropchoicesuitabletosoilconditions(n=2)• avoidanceofchemicaldegradation(n=2)• avoidanceofcontamination(n=3)

BiodiversityConservation/Enhancement(n=11)

• managementplansandrecords(n=5)• non-disturbanceofnaturalareas(n=2)• justificationsforlandconversion(n=2)

WasteManagement(n=11)

• recycling,reuseandreductionstrategiesandtargets(n=6)

CropProtectionManagement(n=10)• managementplansandrecords(n=3)• riskassessmentsandmitigationmeasures(n=2)• procedurestodealwithspills(n=2)• traininginanduseofIPM(n=5)• demonstrablenecessityofCPPuseandamounts(n=3)• strategiestoreducequantityandtoxicityofCPPsused(n=2)• targetedCPPapplication(n=3)• preventionofpestresistance(n=2)• useofculturalcontrolmethods(n=2)• pest/diseasescouting,samplingandmonitoring(n=2)• responsiblecontainerdisposal(n=3)

NutrientManagement(n=8)

• managementplansandrecords(n=3)• soilnutrientsamplingasbasisforapplication(n=2)• use/compositionoftreated/untreatedsewageorsludge(n=3)• responsiblestorage(n=2)

Audit/VerificationRequirementsoftheSustainableSourcingSchemes

Informationregardingtheverificationandauditrequirementsoftheconsideredschemeswas,ingeneral,limited(Table5).Someschemes,suchastheISCCsystemandUnilever’sSustainableAgricultureCode,doprovidedetailedinformationregardingrequirementsandprocesses.Forexample,theISCCwebsitedescribesindetailthestepsthatanapplicantforcertificationmustfollow(seeISCCsummarysection),includingtheaccreditationrequirementsforthethird-partycertifyingbodythattheapplicantmustcontractwith.Similarly,informationavailableontheUnileverwebsitedetailsproceduresthat

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processorsmustfollowinordertoverifycomplianceoftheirrawmaterialsupplychains,includingspecificnumbersandproceduresrequiredforrandomsampleauditandverificationactivities.Incontrast,availableliteraturedescribingseveraloftheschemesindicatesonlythatsuppliersmustverifycomplianceoftheirsupplychainsagainstthe(oftenverygeneral)requirementsofthecompany’scode/program.Foranumberoftheotherschemesconsidered,nomentionwhatsoeverofverification/auditwasidentifiedinthepublicallyavailableinformationthatwasaccessedforassessment.Audit/verificationprotocolsarecurrentlyunderdevelopmentforsomeoftheinitiativessuchastheCanadianRoundtableonSustainableBeefandtheCanadianRoundTableonSustainableCrops.

Forsomeoftheschemes–inparticularthirdpartyormultistakeholderinitiativessuchastheCanadianFieldprintCalculatorandthePotatoSustainabilityInitiative–specificauditrequirements/proceduresarenotinplace,butratherwouldlikelybeatthediscretionoftheenduser.Forexample,inthecaseofthePotatoSustainabilityInitiative,farmersareabletocommunicatetheirresultsdirectlytospecificcustomers,andassociatedaudit/verificationrequirementswouldbeatthecustomersdiscretionandinaccordancewiththeirownsustainablesourcingpoliciesandprocedures.McCain’s,forexample,usesbothCanadaGAPandthePSI,withsupportingaudits,intheirMcCainGAPprogramformsourcingpotatoes.Finally,wherecompaniessuchasretailersemploymultiplethird-partyschemes(forexample,Loblaw),verificationandauditrequirementswilllikelyvarybyscheme.

Table5.Characterizationofschemeaudit/verificationrequirements.

Verification/AuditRequirements

CanadianFieldprintCalculator notcurrentlyapplicableSAI firstorthirdpartyauditsatdiscretionofcustomerISCCandISCCPlus requirescertificationbyanaccreditedthird-partybody,includingan

auditbythisbodyPSI verification/auditisnotanexplicitprogramrequirement-likelyat

discretionofcustomerCRSB underdevelopmentCRSC underdevelopmentDSFandDairyproAction third-partyauditwillberequiredNestleSupplierCode suppliersmustverifythatsub-tiersuppliers,includingproducers,

satisfytheCoderequirementsUnileverSAC suppliersmustverifythatsub-tiersuppliers,includingproducers,

satisfytheCoderequirementsaspertheUnileverSchemeRules-randomsamplechosenforself-assessment,followedbyrandomsamplespot-auditsbyanindependentverificationbody

GeneralMills nopublicallyavailableinformationwaslocated–likelydependsonspecificactivity

Molson-Coors supplieridentifiedtorepresenthighriskpotentialmaybeauditedatthesupplier'sexpense

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Kelloggs suppliersmustverifycomplianceoftheirsupplychainsagainsttheSupplierCodeofConductandallowKelloggoranauthorizedthirdpartytoconductauditstoverifycompliance

Sysco requiresanimalwelfareandqualityassuranceaudits,withfollow-upauditstoensureimprovementplansareimplemented

Costco mayconductanimalwelfareauditsWalmart nopublicallyavailableinformationwaslocatedADM(SustainableGrowers

Program-ISCC)

auditbyADMand,potentially,third-partyaudit

Pepsico nopublicallyavailableinformationwaslocated

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Assessmentresultsforthe“accessibility”oftheselectedsustainablesourcingschemes

Asubset(i.e.thoseforwhichsufficientinformationwasavailableforsomeorallofthecriteria)oftheeighteensustainabilityschemesthatwereselectedforanalysiswereeachevaluatedagainstamatrixofcriteriaforaccessibility.Accessibilityreferstotheextenttowhichfarmerparticipationintheschemewilllikelybeenabledbyvariousschemecharacteristics.Criteriainclude,forexample:theclarityofpurposeofthescheme;theeaseofimplementation(includingtheavailabilityofsupportinginformation,guidancedocuments,and/orcalculationtools);andthecostofimplementation.Thisassessmentwasbasedonareviewofthepublicallyavailabledocumentsthatwereidentifiedviainternetsearches–inparticular,thematerialavailableonthewebsitesoftheschemeowners.Thereviewwaslargelyqualitative,and,giventheshorttimelinesforthisproject,schemeoperatorswerenotcontactedforverificationoftheanalysis.Rather,thescoringreflectsthereviewer’sjudgmentofthescheme

characteristicsrelativetobestavailableapproachesforeachsub-criterionvis-à-vistheotherschemes,

basedonthepublicallyavailableinformationthatwasaccessedfortheanalysis.Error!Referencesourcenotfound.presentstherankedscoresforaccessibilityforeachscheme.DetailedscoresbycriterionforeachoftheevaluatedschemesareprovidedinAppendixA.

Theschemesgenerallyprovideclearinformationregardingtheirpurposeandapplicability,butarequiteTheschemesgenerallyprovideclearinformationregardingtheirpurposeandapplicability,butarequiteinconsistentwithrespecttothelevelofguidancethatisprovidedtosupportimplementationofschemerequirements.Someareverydetailed–forexample,theon-linePotatoSustainabilityInitiativesurveyprovidespop-upstyleguidanceforspecificquestions.Others,however,provideverylittleindicationastohowfarmersareexpectedtomeetthestatedrequirements,whetherthesearespecificorgeneralinnature.

Overall,theschemesshouldbequiteaccessibletofarmers,astheindicatorsandrequirementslargelyrefertosubjectareasandpracticeswithwhichfarmerswillbeintimatelyfamiliar.Schemesrequiringgreenhousegasemissionsassessments,soilsamplingtechniques,orotherassessmentactivitiesnotpreviouslyundertakenbyafarmermayprovechallengingandhencenecessitatethird-partyassistance.

Thedatarequirementsfortheschemescanlikelybemet,asmostrefertoinformation/recordsregardingthefarmersownpractices.Indicatorsrelatedtobiodiversity,orGHGemissionscalculationsrequiringuseofemissionfactorsmaypotentiallybemorechallengingtosatisfy.

Anumberoftheschemeshavetheirowncalculationtools,whileothersmakeuseofthird-partycalculators(toolsdevelopedbymulti-stakeholderinitiativesofwhichtheyarepart).Suchcalculatorsaretypicallydevelopedtobequiteuserfriendly,hencetheiravailabilityiscertainlyadvantageoustosupportsatisfactionofindicatorssuchasgreenhousegasemissionscalculations.

Onlyoneoftheschemesreviewed(ISCC)hasdirectassociatedcostsforfarmers,intheformoffeestohireanaccreditedcertificationbodyforthecertificationprocess.Molson-Coorsalsostates,however,thathigh-risksuppliersmaybeauditedattheirowncost.Outsideofthesedirectaudit/verificationcosts,

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burdensonfarmerswilllargelyrelatedtothetimerequiredtodemonstratecompliance,aswellascostsassociatedwithdevelopingtherequiredmanagementsystems,infrastructure,andmodifiedpractices.Thesecostswillbelargelycontext-dependent,henceitisnotpossibletomakemeaningfulestimationsregardingcostlevelsforthesevariablesinthecontextofthecurrentanalysis.

Onlyasubsetoftheschemesindicatethatverification/auditproceduresarenecessary.Wheresuchrequirementsexist,thelevelofdetailprovidedisquitevariable.BothUnileverandISCCprovidequitedetailedinformation,whereasotherschemesprovideonlygeneralstatementsonlysuchas“suppliersmustverifycomplianceoftheirsupplychains.”

Asageneralobservation,multi-stakeholderschemesachievedhigheraccessibilityscoresthandidmostprivatecompanyschemes.

Figure1."Accessibility"scores(rankedfromhighesttolowest)forasubsetofeachofthereviewedsustainablesourcing

schemes.

SummaryofSomeKeyCommonalitiesandDifferencesamongtheSelectedSchemes

Theselectedschemesevinceavarietyofcommonalitiesanddifferences(Table6).Oneofthemorecommonfeaturesisschemetype,withmostschemescorrespondingtothe“compliancechecklist”type.Here,participantsaretypicallyrequiredtodemonstratecompliancewithrespecttolistsofdesiredoutcomesorbestpractices.Calculatorsandcertificationprogramsareseeminglymuchlesscommon–atleastamongschemesofhighestpotentialrelevanceforAlbertafarmers.

Therewasafairlyevendistributionbetweenmulti-stakeholderversusprivatecompanyinitiatives.WiththeexceptionoftheUnileverinitiative,themulti-stakeholderschemesgenerallyappeartobemore

0%

20%

40%

60%

80%

100%

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comprehensiveanddetailedthanthein-houseinitiativesofprivatecompanies.Industry-led,multi-stakeholderinitiativessuchastheCRSCandCRSBmayultimatelyproveamongthemostsuccessfuloftheseschemesinlightoftheground-upbuy-inthatisachievedthroughconsensus-based,roundtableprocesses.Theymayalsobelesspronetochargesof“green-washing”orgeneralskepticismduetotherangeofstakeholderintereststhatarerepresentedduringtheirdevelopment.

Almostalloftheselectedschemesrefertomultiplecriteriaandindicators.Thereisalargerangeinthenumberofcriteriaandsupportingindicatorsappliedbydifferentamongtheschemes.However,acommonsetofcriteriaisobservedinthemajorityofschemes,specifically:WaterManagement;EnergyUse/Efficiency;Climate;SoilManagement;BiodiversityConservation/Enhancement;WasteManagement;CropProtectionManagement;andNutrientManagement.AnimalHealthandWelfare,alongwithavarietyofsocio-economicindicators,arealsorepresentedinmostschemes,althoughthesewerenotconsideredindetailinthecurrentanalysis.

Atpresent,thereisseeminglylittleconsistencyinthespecificindicatorsthatareemployedtoassessperformanceagainstmanyofthecriteria.Indicatorsforcriteriasuchascropprotectionmanagement,soilmanagement,andnutrientmanagementareparticularlydiverse.ThisislessthecaseforindicatorsrelatedtoWasteManagement,EnergyUse/Efficiency,andBiodiversityConservation/Enhancement.Thereisalsoinconsistencyinthelevelofdetailthatschemesprovidewithrespecttohowtodemonstratecompliancewithindicatorsandcriteria.Acommonfeatureacrossmanyoftheschemesistherequirementformanagementplansandrecordsforseveralofthecriteria.

Fewoftheschemesprovidedetailedinformationregardingverification/auditrequirements,andsomemakenomentionofsuchrequirements.Theabsenceofclearrequirements–bothintermsofcriteria/indicatorsandverification/audit–maypresentanon-trivialstumblingblocktoenablingfarmersuccessinmeetingschemerequirements.

Oneverycommonfeatureamongtheselectedschemesistheemphasisoncontinuousimprovement,althoughthebasisfordemonstratingcontinuousimprovementmayvary.Overall,thefocusappearstobeonoutcomesandbestmanagementpracticesratherthanestablishingprescriptive,quantitativeperformancerequirements.Requirementsrelatedtothedevelopmentandimplementationofmanagementplans,riskassessments,andmitigationstrategiesarecommontomanyoftheschemes.

Mostoftheprivatesectorinitiativesarecurrentlyfocusedontheirpriorityrawmaterials,withconcretetargetsregardingsustainablesourcingvolumesanddates.AlthoughverylittleinformationwasidentifiedsuggestingthatAlbertaproductionsystemsarecurrentlyontheradaroftheseprograms,manyofthepriorityrawmaterialsdocorrespondtothelistofpriorityAlbertacommoditiesthatwereidentifiedforconsiderationinthisstudy.Thisissimilarlytrueofthemulti-stakeholderinitiatives.TheCanadianinitiatives(CRSCandCRSB)aswellastheCanadianFieldprintCalculatorwillclearlybeofdirectrelevanceforAlbertanproducers.Withrespecttolivestockproducts,itisnotablethatfewschemes

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currentlyconsidertheenvironmentalsustainabilitydimensionsoflivestockproducts,buttendtofocusratheronanimalhealthandwelfareconsiderations.

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Table6.Summaryofkeycommonalitiesanddifferencesamongtheselectedschemes.

ProgramType Operator Stakeholder

Representation

Multi-

criteria

Verification/

Audit

Continuous

Improvement

RelevantTargetCommodities

Canadian

Fieldprint

Calculator

calculator Serecon Yes Yes Yes fieldcrops

SAIFSA2.0 checklist

compliance

SAIPlatform Yes Yes Maybe Yes allcrops,sugarbeets

ISCCandISCC

Plus

certification ISCCAssociation Yes Yes Yes allcrops,canola

PSI checklist

compliance

industryconsortium Yes Yes Maybe Yes potatoes

CRSB notyet

determined

CRSBCouncil Yes Yes Being

developed

Yes beef

CRSC notyet

determined

CRSCSteering

Committee

Yes Yes Being

developed

Yes fieldcrops

DSFandDairy

proAction

Environmental

FarmPlan

DairyFarmersof

Canada

Yes Yes Yes dairy

NestleSupplier

Code

checklist

compliance

Nestle private Yes Yes Yes sugar,dairy,meat,poultryand

eggs

UnileverSAC checklist

compliance

Unilever private Yes Yes Yes sugar,canolaoil,dairyandeggs;

workingonwheatinUS

GeneralMills multipletypes GeneralMills private Yes Yes oats,wheat,sugarbeet,aswellas

othercropsinrotation(lentils,

peas,canola,potatoes)

Molson-Coors checklist

compliance

Molson-Coors private Yes Maybe Yes barley

LoblawSourcing

withIntegrity

multipletypes Loblaw private Animal

welfare

Maybe Yes eggsandpork

Kelloggs multipletypes Kelloggs private Yes Yes Yes wheat,oats,potatoesandsugar

beets

Sysco checklist

compliance

Sysco private Yes Yes Yes potatoes,livestockproducts

Costco animalwelfare

audits

Costco private Animal

welfare

Maybe livestockproducts

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Walmart

Sustainability

Indexand

Sustainability

Consortium

checklist

compliance

Walmart/Sustainability

Consortium

Yes Yes Yes allproducts;TSCToolkitsavailable

forbeef,chicken,eggs,pork,

grains,barleyandmalt,sugar,

beans/lentils/peasandpotatoes

ADM

(Sustainable

Growers

Program-ISCC)

certification ADM private Yes Yes canola,butpotentiallyotherraw

materialsalso

Pepsico multipletypes Pepsico private Yes Yes oat,sugarandpotatoes

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Companies/schemesmakingdirectsustainablesourcingreferencetotheshortlistofAlbertacommoditiesaredescribedinTable7.Mostofthecommoditiesarereferredtobyatleastfiveoftheschemes.Canola,oats,sugarbeets,potatosandmilkarereferredtomostfrequently.Tamehay,barley,peas,andchickenarereferredtoleastfrequentlyamongtheschemesconsideredinthisanalysis.

Table7.SustainablesourcingprogramsthatrefertopriorityAlbertacommodities.

Commodity CFC SAI ISCC PSI CRSB CRSC DSF N U GM MC L K S C W ADM P #

Wheat x x x x x 5Canola x x x x x x 6TameHay 0Barley x x x x 4Peas x x x 3Oats x x x x x x 6SugarBeets x x x x x x x 7Potatoes x x x x x x 6Beef x x1 x x x 5Pork x x x x x 5Chicken x x x x 4Eggs x x x x x 5Milk x x x x x x 6

note:CFC=CanadianFieldprintCalculator,SAI=SustainableAgricultureInitiativeFarmSustainabilityAssessmentTool2.0,ISCC=InternationalSustainabilityandCarbonCertification(andISCCPlus),PSI=PotatoSustainabilityInitiative,CRSB=CanadianRoundtableonSustainableBeef,CRSC=CanadianRoundTableonSustainableCrops,DSF=DairySustainabilityFrameworkandDairyproAction,N=NestleSupplierCode,U=UnileverSustainableAgricultureInitiative,GM=GeneralMills,MC=Molson-CoorsSupplierCodeandAgriculturalBrewingIngredientsPolicy,L=LoblawSourcingwithIntegrity,K=KelloggsSupplierCode,S=Sysco,C=Costco,W=WalmartSustainabilityIndexandtheSustainabilityConsortiumProductToolkits,ADM=ArcherDanielsMidlandSustainableGrower’sProgram,P=PepsicoSupplierCodeandSustainableFarmingInitiative

(1)LoblawiscurrentlyinvolvedintheMcDonald’spilotprojectonsourcingverifiedsustainablebeef

ConclusionsSustainablesourcingisclearlyasubjectofincreasingrelevanceintheagri-foodmarketplace.Numerousprivatecompanyandmulti-stakeholderinitiativeshaveemerged.Theseinitiativestakeavarietyofapproachesandfociinpursuitofleveragingimprovedsustainabilityperformancealongsupplychains.Alsoimportantasmotivatorsforsuchinitiativesarethemarketaccessandsociallicenseopportunitiesforparticipants.

InCanada,severallarge-scale,multi-stakeholderinitiativesinsupportofdevelopingmethods,criteria,indicatorsandtoolstosupportsustainablesourcingofspecificcommoditiesareinprogress.NumerousfoodsectorcompaniesoperatinginCanadaalsohavein-housesustainablesourcingprograms,andseveralpilotprojectsareunderway.Internationally,therealsoinitiativessuchasSAIandISCCthatmaybeorarebeingactivelyimplementedinCanada.

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Overall,however,theactualdegreeofsustainablesourcingactivitythatisplacingdirectdemandsonAlbertanfarmers(outsideofanimalwelfareaudits)appearstobequitelimitedatpresent.WhereassustainablesourcingmayberelativelyadvancedinEurope,theUSorelsewhere,actualimplementationofsuchactivitiesinCanadaisseeminglylagging.Nonetheless,stakeholdersthroughouttheCanadianfoodsystemarewellawareoftheincreasingrelevanceofsustainablesourcingforagri-foodproducts,andtheinevitabilityofimplementationofrelatedprogramsinCanadaovertime.

Thesustainablesourcinginitiativesthatwereselectedforanalysisinthisstudyencompassaheterogeneoussetofactivities,andarequitevariableinbothscopeandspecificity.Somecommonfeaturesareinevidence,includingthenatureofsuchschemes(typicallybasedonacompliancechecklistapproach),thesetofenvironmentalcriteriathataremostcommonamongthem(WaterManagement;EnergyUse/Efficiency;Climate;SoilManagement;BiodiversityConservation/Enhancement;WasteManagement;CropProtectionManagement;andNutrientManagement),andageneralemphasisoncontinuousimprovementratherthanprescriptiveperformancelevels.Theyare,however,quitevariableintermsofindicatoruseandspecificityfordemonstratingcompliancewithenvironmentalcriteria.Detailsregardingverification/auditrequirements,ifany,arealsogenerallyquitethinaswellasinconsistentbetweenschemes.Atpresent,someschemeswilllikelybemuchmoreaccessibleforfarmersthanothers.

Takentogether,theseobservationssuggestconsiderablescopeformaturationformostoftheinitiativesevaluated,aswellasthecleardesirabilityofharmonizationamonginitiatives.Ingeneral,thefeasibilityandefficacyofsustainablesourcingwillbestronglyinfluencedbytheextenttowhichfarmersareenabledtoparticipate.Thisrequiresclarityandconsistencyinrequirements,verification/auditmechanisms,andavoidanceofduplicationandoverburdenresultingfromfarmershavingtograpplewithmultiple,heterogeneousschemes.

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AppendixA.DetailedEvaluationResultsfortheAccessibilityofthe

Program/Activity

CanadianFieldprintCalculator

PROGRAM/ACTIVITY:CANADIANFIELDPRINTCALCULATOR

ACCESSIBILITY

EvaluationCriteria Score

Theprogram/activity NA Doesnotsatisfythecriterion(weight=0)

Somewhatsatisfiesthecriterion

(weight=1)

Satisfiesthecriterion(weight=2)

(1)providesclearinformationastoitspurposeandapplicability

x

(2)providesclearguidancedocuments/materialinsupportofitsimplementation

currentlybeingdeveloped x

(3)isaccessibletoanon-expertaudience calculatorisuserfriendly

x

(4)requiresdatathatarereasonablyaccessible

x

(5)hassupportingtools/softwareorothermaterialsthatfacilitateitsimplementation

x

(6)doesnothavehighimplementationcosts x

(7)hasclearverification/auditproceduresandrequirements

x

Totals 10

WeightedAccessibilityScore 10/10=100%

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SustainableAgricultureInitiativeFarmSustainabilityAssessment2.0

PROGRAM/ACTIVITY:SAIFarmSustainabilityAssessment2.0

ACCESSIBILITY

EvaluationCriteria Score

Theprogram/activity NA Doesnotsatisfythecriterion(weight=0)

Somewhatsatisfiesthecriterion

(weight=1)

Satisfiesthecriterion(weight=2)

(1)providesclearinformationastoitspurposeandapplicability

detailedwebsiteandpublication

x

(2)providesclearguidancedocuments/materialinsupportofitsimplementation

limitedguidanceprovidedintoolitself x

(3)isaccessibletoanon-expertaudience x

(4)requiresdatathatarereasonablyaccessible

farmer’sowndata x

(5)hassupportingtools/softwareorothermaterialsthatfacilitateitsimplementation

onlineordownloadableExcel-basedtool

x

(6)doesnothavehighimplementationcosts free x

(7)hasclearverification/auditproceduresandrequirements

atdiscretionofcustomer,hencemayvary

x

Totals 1 1 5

WeightedAccessibilityScore 10/12=83%

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ISCC/ISCCPlus

PROGRAM/ACTIVITY:ISCCandISCCPlus

ACCESSIBILITY

EvaluationCriteria Score

Theprogram/activity NA Doesnotsatisfythecriterion(weight=0)

Somewhatsatisfiesthecriterion

(weight=1)

Satisfiesthecriterion(weight=2)

(1)providesclearinformationastoitspurposeandapplicability

detailedwebsiteandpublications

x

(2)providesclearguidancedocuments/materialinsupportofitsimplementation

Annexestostandardsspecifyrequirementsandcertificationprocess

x

(3)isaccessibletoanon-expertaudience x

(4)requiresdatathatarereasonablyaccessible

farmersowndata,detailedrecords,emissionfactors

x

(5)hassupportingtools/softwarethatfacilitateitsimplementation

x

(6)doesnothavehighimplementationcosts costsassociatedwithhiringcertifier

x

(7)hasclearverification/auditproceduresandrequirements

detailedguidanceprovidedre.process,requirescontracting

x

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PotatoSustainabilityInitiative

anaccreditedcertificationbody

Totals 1 2 4

WeightedAccessibilityScore 10/12–83%

PROGRAM/ACTIVITY:POTATOSUSTAINABILITYINITIATIVE(PSI)

ACCESSIBILITY

EvaluationCriteria Score

Theprogram/activity NA Doesnotsatisfythecriterion(weight=0)

Somewhatsatisfiesthecriterion

(weight=1)

Satisfiesthecriterion(weight=2)

(1)providesclearinformationastoitspurposeandapplicability

websitehostingthePSIsurveydoesnotprovidemanydetails

x

(2)providesclearguidancedocuments/materialinsupportofitsimplementation

on-linesurveyquestionshavelinkedsupportinginformation

x

(3)isaccessibletoanon-expertaudience x

(4)requiresdatathatarereasonablyaccessible

x

(5)hassupportingtools/softwareorothermaterialsthatfacilitateitsimplementation

on-linesurvey x

(6)doesnothavehighimplementationcosts free x

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NestleSupplierCodeandResponsibleSourcingGuideline

(7)hasclearverification/auditproceduresandrequirements

maybeatcustomersdiscretion,hencemayvary

x

Totals 1 1 5

WeightedAccessibilityScore 11/12=92%

PROGRAM/ACTIVITY:NestleSupplierCodeandResponsibleSourcingGuideline

ACCESSIBILITY

EvaluationCriteria Score

Theprogram/activity NA Doesnotsatisfythecriterion(weight=0)

Somewhatsatisfiesthecriterion

(weight=1)

Satisfiesthecriterion(weight=2)

(1)providesclearinformationastoitspurposeandapplicability

detailedinformationonNestlewebsite

x

(2)providesclearguidancedocumentsinsupportofitsimplementation

manygeneralrequirements,butspecificguidancewasnotidentified

x

(3)isaccessibletoanon-expertaudience sincespecificguidanceislimited,non-expertsmayrequiresupport

x

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UnileverSustainableAgricultureCode

(4)requiresdatathatarereasonablyaccessible

appearstobelargelyfarmersowndata

x

(5)hassupportingtools/softwareorothermaterialsthatfacilitateitsimplementation

x

(6)doesnothavehighimplementationcosts x

(7)hasclearverification/auditproceduresandrequirements

websitestatesonlythatfirstorthird-partyauditsmaybeimplemented

x

Totals 2 1 4

WeightedAccessibilityScore 9/14=64%

PROGRAM/ACTIVITY:UNILEVERSAC

ACCESSIBILITY

EvaluationCriteria Score

Theprogram/activity NA Doesnotsatisfythecriterion(weight=0)

Somewhatsatisfiesthecriterion

(weight=1)

Satisfiesthecriterion(weight=2)

(1)providesclearinformationastoitspurposeandapplicability

detailedinformationonwebsite

x

(2)providesclearguidancedocumentsinsupportofitsimplementation

limitedtechnicalguidance,butindicatorsarequiteclear

x

(3)isaccessibletoanon-expertaudience x

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MolsonCoorsSupplierCodeandAgriculturalBrewingIngredientsPolicy

(4)requiresdatathatarereasonablyaccessible

farmersowndata x

(5)hassupportingtools/softwareorothermaterialsthatfacilitateitsimplementation

GreenlightssoftwareonMuddyBootsplatform

x

(6)doesnothavehighimplementationcosts notdirectlyforfarmers(althoughprobablytime-intensive),butlikelycostlyforprocessorstoauditsuppliers

x

(7)hasclearverification/auditproceduresandrequirements

auditdetailsdescribedonwebsite

x

Totals 1 6

WeightedAccessibilityScore 13/14=93%

PROGRAM/ACTIVITY:MOLSONCOORSSUPPLIERCODE

ACCESSIBILITY

EvaluationCriteria Score

Theprogram/activity NA Doesnotsatisfythecriterion(weight=0)

Somewhatsatisfiesthecriterion

(weight=1)

Satisfiesthecriterion(weight=2)

(1)providesclearinformationastoitspurposeandapplicability

detailedmaterialoncompanywebsite

x

(2)providesclearguidancedocumentsinsupportofitsimplementation

quitegeneralrequirementsinCode,butthe

x

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KelloggsSupplierCode

companyprovidesguidancetosupplierstoenableimprovements

(3)isaccessibletoanon-expertaudience x

(4)requiresdatathatarereasonablyaccessible

x

(5)hassupportingtools/softwareorothermaterialsthatfacilitateitsimplementation

materialtobeprovidedbycompanyasappropriate

x

(6)doesnothavehighimplementationcosts x

(7)hasclearverification/auditproceduresandrequirements

statesonlythathighrisksuppliersmaybeauditedatowncost

x

Totals 1 2 4

WeightedAccessibilityScore 10/14=71%

PROGRAM/ACTIVITY:KELLOGGSSUPPLIERCODEOFCONDUCT

ACCESSIBILITY

EvaluationCriteria Score

Theprogram/activity NA Doesnotsatisfythecriterion(weight=0)

Somewhatsatisfiesthecriterion

(weight=1)

Satisfiesthecriterion(weight=2)

(1)providesclearinformationastoitspurposeandapplicability

detailedinformationonwebsite

x

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SyscoSupplierCodeandRelatedMeasures

(2)providesclearguidancedocumentsinsupportofitsimplementation

Codeisquitegeneral,littlespecificinformationwasidentified

x

(3)isaccessibletoanon-expertaudience x

(4)requiresdatathatarereasonablyaccessible

x

(5)hassupportingtools/softwareorothermaterialsthatfacilitateitsimplementation

mayuseexistingprogramslikeFieldprintCalculatorinUS

x

(6)doesnothavehighimplementationcosts x

(7)hasclearverification/auditproceduresandrequirements

statesonlythatsuppliersmustverifycomplianceofsupplychainagainsttheCode

x

Totals 1 1 5

WeightedAccessibilityScore 11/14=79%

PROGRAM/ACTIVITY:SYSCOSUPPLIERCODEOFCONDUCTANDRELATEDSPECIFICMEASURES

ACCESSIBILITY

EvaluationCriteria Score

Theprogram/activity NA Doesnotsatisfythecriterion

Somewhatsatisfiesthecriterion

Satisfiesthecriterion

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WalmartSustainabilityIndexandTheSustainabilityConsortium

(weight=0)

(weight=1) (weight=2)

(1)providesclearinformationastoitspurposeandapplicability

detailedinformationonwebsite

x

(2)providesclearguidancedocumentsinsupportofitsimplementation

goodguidancewithrespecttosomerequiredmeasures

x

(3)isaccessibletoanon-expertaudience x

(4)requiresdatathatarereasonablyaccessible

x

(5)hassupportingtools/softwareorothermaterialsthatfacilitateitsimplementation

x

(6)doesnothavehighimplementationcosts x

(7)hasclearverification/auditproceduresandrequirements

statesonlythatsuppliersmustallowunannouncedanimalwelfareandqualityassuranceaudits

x

Totals 2 1 4

WeightedAccessibilityScore 9/14=64%

PROGRAM/ACTIVITY:WALMARTSUSTAINABILITYINDEX(ANDSUSTAINABILITYCONSORTIUMPRODUCTTOOLKITS)

ACCESSIBILITY

EvaluationCriteria Score

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PepsicoSupplierCodeandSustainableFarmingInitiative

Theprogram/activity NA Doesnotsatisfythecriterion(weight=0)

Somewhatsatisfiesthecriterion

(weight=1)

Satisfiesthecriterion(weight=2)

(1)providesclearinformationastoitspurposeandapplicability

x

(2)providesclearguidancedocumentsinsupportofitsimplementation

Indexisfairlystraight-forward.Environmentalrequirementsclearonlyiflinkedtoexistingthird-partsustainablesourcingprogramorimplementingTSCToolkits

x

(3)isaccessibletoanon-expertaudience x

(4)requiresdatathatarereasonablyaccessible

x

(5)hassupportingtools/softwareorothermaterialsthatfacilitateitsimplementation

TSCmaterialprovidesgoodguidanceifused

x

(6)doesnothavehighimplementationcosts x

(7)hasclearverification/auditproceduresandrequirements

norequirements/detailswereidentified

x

Totals 1 2 4

WeightedAccessibilityScore 10/12=83%

PROGRAM/ACTIVITY:PEPSICOSUSTAINABLEFARMINGINITIATIVEANDSUPPLIERCODE

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ACCESSIBILITY

EvaluationCriteria Score

Theprogram/activity NA Doesnotsatisfythecriterion(weight=0)

Somewhatsatisfiesthecriterion

(weight=1)

Satisfiesthecriterion(weight=2)

(1)providesclearinformationastoitspurposeandapplicability

x

(2)providesclearguidancedocumentsinsupportofitsimplementation

Codeprovidesverygeneralstatementregardingenvironmentalperformance,andguidanceelsewhereisalsoquitegeneral.

x

(3)isaccessibletoanon-expertaudience x

(4)requiresdatathatarereasonablyaccessible

x

(5)hassupportingtools/softwareorothermaterialsthatfacilitateitsimplementation

supportingmaterialswerenotidentified

x

(6)doesnothavehighimplementationcosts x

(7)hasclearverification/auditproceduresandrequirements

statesonlythatadherencetotheCoderequirescooperatingwithreasonableassessmentprocesses

x

Totals 2 1 4

WeightedAccessibilityScore 9/14=64%

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AppendixB.AboutNathanPelletierandGlobalEcologic

Understandingandmanagingtheenvironmentalandsocialcostsandbenefitsofeconomicactivityhasbecomeadefiningchallengeofthemodernera.Thischallengeprovidesthenucleusfortherapidlyevolvingfieldofsustainabilitymeasurementandmanagement.NathanPelletier,principalofGlobalEcologic,isanindependentsustainabilityconsultantspecializinginenvironmentalandsocialperformancemeasurementandmanagementstrategiesinfoodandotherindustrialsystems.Hisworkproceedsfromtherecognitionthatsustainabilityisthefirstprincipleofresponsiblemanagement,whetheratthelevelofprivateenterprise,regional,nationalorglobalgovernance.

Pelletierworkscloselywithclientstobuildanunderstandingofsupplychainenvironmentalandsocialsustainabilityperformanceandmitigationopportunitiesusingavarietyofcuttingedgemodelingframeworks.Theseincludeenvironmentalandsociallifecycleassessment,environmentalfootprinting,supply-chaingreenhousegasaccounting,energyanalysis,andecologicalfootprintanalysis.Heisdedicatedtodeliveringhigh-quality,cost-effectiveconsultingservicestomeetthedemandsofcitizens,firmsandorganizationscommittedtofurtheringsustainabilityobjectives.

PelletierestablishedGlobalEcologicin2006.Hehassincecontinuedtoexpandhisbroadexperiencebaseinfoodsystemsustainabilityconsultingservices,workingwithavarietyofsmallandlargeorganizationstofurthertheirsustainabilityinitiativesbothathomeandabroad.Havingresearchedandmodeledover150agriculturalcrop,animalhusbandry,fisheriesandaquacultureproduction,processinganddistributionsupplychainsusingISO14044-compliantlifecycleassessment(LCA),PelletierisrecognizedasaninternationalexpertinLCAoffoodsystems,andaleaderinthefield.Examplesofrecentandon-goingconsultingprojectsinclude:

• evaluationofthesociallicenseandmarketaccessimplicationsofsustainablesourcingschemesforAlbertaAgricultureandForestry

• reviewofLCAstudiesforISO14044complianceforvariousprivateandpublicsectorbodies• socialandenvironmentallifecycleassessmentoftheCanadianeggindustry,including

assessmentofalternativehousingtechnologies,forEggFarmersofCanada• lifecycleassessmentofgreenhousegasemissionsforeggproductionandprocessingsupply

chainsintheUnitedStatesfortheAmericanEggBoard• comparativelifecycleassessmentoftheenvironmentalperformance(includingGHGemissions)

oftheUSnationaleggsectorin1960and2010fortheAmericanEggBoard,EggIndustryCouncil,andUnitedEggProducers

• developmentofasupplychainecologicalfootprintandgreenhousegasaccountingtoolincorporatingLCA-basedmodelsofagricultural,fisheriesandanimalhusbandryproductsupply

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chainsforamajorinternationalaquafeedscompany(EWOS)tofacilitateleast-environmental-costfeedsourcing(sevenprojectssince2006)

• lifecycleassessmentoftilapiaaquacultureproductioninlakeandpond-basedsystems,includingprocessingandtransportationtomarketportsfortheleadingglobaltilapiaproducer,RegalSprings

• developmentofasupplychaingreenhousegasaccountingtoolforSeaFishIndustryAuthority(UK)forprofilinghigh-volumeseafoodsupplychains

• ProvisionoffoodproductgreenhousegasemissionsintensitydataforBonAppétitManagementFoundationCompany(CompassFoodService),tobeusedineducatingtheirinstitutionalchefsaswellastheiron-linefoodproductGHGcalculatoraspartoftheLowCarbonDietInitiative

PelletierhassimilarlyconstructedandpublishedLCAmodelsofUSnationalbroilerpoultryproduction,highandlow-profitabilityconventionalandnicheswineoperationsinthemid-westernUnitedStates,aswellasthreecompetingmid-westernbeefproductiontechnologies.AllofthesemodelsareconstructedusinganISO14044-compliantLCAmodellingplatformdevelopedbyPelletierforthepurposeofhigh-resolutionanalysesofcropandanimalhusbandrysystems.Thisincludescustomizedsub-modelsbasedoninternationallyrecognizedprotocolsandbest-availablescientificpractice.Becausetheplatformenablestheuseofidenticalmodellingprinciplesandparametersforcontext-specificapplications,itensuresdirectandrobustcomparabilityofmodelresultswithinandacrossproductionsystemsandtechnologies.

Healsorecentlydevelopedamacroscalescreening-levelsocialLCAusing28socialriskcategoriesfortrade-basedconsumptionintheEuropeanUnion(takingintoaccountflowsofinternationallytradedcommodities)fortheEuropeanCommissionJointResearchCentre.Thismodelcharacterizedthesocialrisksattributabletothetrade-basedconsumptionpatternsoftheaverageEU-27consumer,aswellasforEU-27trade-basedconsumptioninaggregate.

Pelletiersimilarlyrecentlycompleteddraftingthelifecycle-basedEuropeanCommissionProductandOrganizationEnvironmentalFootprintmethods,whichwillbecomethereferencemethodslinkedtoanyvoluntaryormandatoryapplicationsassociatedwithEuropeanCommissionpolicy,aswellastheEuropeanSustainabilityFootprintframework.

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