3rd Global Networking Conference on

Resource Efficient and Cleaner Production

Didier BERGERETSenior Manager

A global industry network of retailers & manufacturers and their business partners

A global organisation with headquarters in Paris and offices in Tokyo and Washington

A unique platform to develop common positions on key strategic, operational and non-competitive issues affecting the consumer goods business

400 members 70 countries 9.9 million employees US$3.3 trillion in sales

» Sustainable working and environmental conditions throughout global supply chains

Scope

3

consumer retailer / brand

produce

grocery

non-food

home-workers

sub-contractor

manu-facturer

small-holders

plantationopen market

supplier -local

agents -global

agents - local

home-workers

agents -global

small-holdersfarmsco-

operativesopen

market

farms

importers

Source: ETI annual report 2002-2003

and/or

and/or

Scope

4

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

FLA

AdidasReebok

H&M

NikeNordstromPatagonia

PVH

42 other members

EICC

DellCisco

Philips

SonyAppleHP

IBM

61 other members

Context – over 1000 codes...

ICS

CarrefourAuchan

Monoprix

CasinoLeclercConforama

Colruyt

BSCI

MetroMigros

ICA

AholdKeskoOtto

Coop ETI

TescoMothercare

M&S

TchiboGapInditex

WH Smith

JMR

Kimberly Clark

Ikea

Motorola

Wal-Mart

Levis

C&A

8 other members

855 other members

SAI

ChiquitaCarrefour

Gap

TimberlandOtto GroupTNT

Gucci

14 other members

69 other members

5

The context & challenge

BUYING COMPANIES

SHARED SUPPLY BASEALL CONSUMER GOODS RESULT TODAY

SUPPLIERSAGRICULTURE |

INDUSTRY

Carrefour | ICS

HP | EICC

Migros | BSCI

Dole

Gap Inc.

Walmart Social / Environmental requirements

Social / Environmental requirements

Social / Environmental requirements

Social / Environmental requirements

Social / Environmental requirements

Social / Environmental requirements

High cost

Inefficiency

Audit fatigue

many initiatives and programmes

limited collaboration between companies and initiatives

confusion in terms of requirements

focus on passing multiple audits

>> limited progress in terms of sustainable

remediation & capacity building

Governance and membershipADVISORY BOARDTASK FORCE

7

goal: enable suppliers to continuously improve working & environmental conditionsWhat is needed to achieve that?

build Consensus on basic requirements and best existing practice

facilitate Convergence & recognition of existing schemes

Support Collaboration and implementation of best practice for remediation & capacity building

8

1

2

3

The GSCP approach

the GSCP Reference toolssocial & environment

what how who

GSCP Reference Code (social) GSCP Reference Environmental Requirements GSCP Environmental Implementation Guidelines

GSCP Reference tools for Audit Process & Methodology (social) GSCP Reference tools for Environmental Audit Process & Methodology

GSCP Reference tool for Auditing Competence (social & environmental)

› open source› based on existing

international standards

The Reference tools

9

IN SCOPE» Develop best practices reference

tools/standards » Facilitate convergence between brands /

retailers and schemes.» Allow for mutual recognition of schemes» Encourage local networks/capacity

building» Support government efforts to bring

harmonisation of requirements to global supply chains

GSCP Scope

10

OUT OF SCOPE» Execute audits

» Implementation

» Deliver capacity building

» Certification / Accreditation

» Manage data

Shared sustainability agenda » Growing integration by

multinational companies of development and CSR objectives to their core business

» Corporate efforts in developing countries produce successful development results, including employment opportunities, human/institutional capacity building and technology transfer (triple bottom line)

Similar challenges» Scale up = reduce the effort required per company to implement» Mainstream = embed drivers and incentives for implementation

Resources available

Making Private Standards Work for You:A guide to private standards in the garments, footwear and furniture sectors

Interactive, multi-stakeholder model for CSR management integration(aligned with ISO2600, GRI and UNGC)

Sustainable Value Chain Development (agro-industries)

UNIDO – GSCP Cooperation

» Develop capacities within clusters of suppliers (SMEs) to allow them to improve performance (triple bottom-line) and ability to comply with industry Reference requirements (GSCP)

» Enable a common understanding of continuous improvement

» Foster market access for suppliers by integrating into global supply chains and ensuring productivity and sustainability.

» Building Local capacity for upscaling and replication using a standardized Capacity Building and monitoring/reporting toolkit

Overall Objectives

Rationale: Work with the industry reference (GSCP) to:› Develop capacities within clusters of suppliers (SMEs) and local

institutions on productivity and social/environmental sustainability

› Prepare suppliers to comply with buyers’ requirements on social, ethical and environmental aspects (any company/code)

How?› By aligning UNIDO Capacity Building Toolkit (REAP/RECP)

against the GSCP Reference tools in both social & environment fields

› By using GSCP momentum & convening power to get buyers or group of buyers to engage their prospect or current suppliers through the process (as a means to access markets)

Existing Framework

---------------------

REAP | RECP Methodology, tools &

Training Package +

+

Network of trained counsellors / assessors (Indutry, Social/ENV)

=Capacity Building

toolbox for Suppliers

Industry expertise, local presence, capacity and linkages with local governments and PS

//Alignment with GSCP on Social &

Environmental requirements

1

2Update and tailor the “Toolbox”

Global Roll-out Plan

Pilot Inception

Pilot Implementation

3

4

» Align UNIDO tools with GSCP Reference Requirements to build a full Capacity Building Package

» Design and carry out pilot implementation with members companies and their suppliers

» Develop models to roll out implementation at global level.

Roadmap

UNIDO at a Glance

» Transfer of know-how: upgrading of suppliers to increase access to new

markets and improve the supply chain;

» Bridge the gap between suppliers and buyers to create wealth, enhance

trade and increase consumer protection;

» Integration of the development dimension with capacity building of buyers

& suppliers on quality/safety/sustainability/productivity

» Public Goods/Open Source: making available a variety of methods and tools

(‘UNIDO Toolbox’) to suit different development needs and industry sectors,

combined with networks of local service providers

UNIDO Sustainable Supplier Development Programme

Result: enable clusters of suppliers in developing countries to:» gain access to profitable new market

opportunities» establish long-lasting business linkages

with buyers» generate new jobs and income

opportunities» increase availability of sustainable and

safe products

Overall Benefits

With Potential Suppliers

With Current Suppliers

Qualification pre-audit

Risk mitigation

Tailored training and capacity-building

»

»

Benefits for buyers

Market Access

Productivity/efficiency

Tailored training and capacity-building

Benefits for suppliers

Work on NCs

Autonomy

Reduction of NCs

Scalable

Replicable

Allows supply chain management

More balanced relationship with

buyers

Does not replace audits but can work at two

levels with associated benefits

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

Country Products? CommentsTurkey Textiles Already have good infrastructure and

REAP experience

Bangladesh Textiles “Hot topic” – UNIDO has good presence

Malaysia? Vietnam? Thailand?

Electronics? Build on pre-pilot in Malaysia?

South Africa Primary production (fruit?)

Some GSCP members have expressed interest

Costa Rica? Colombia?

Primary production (coffee? Fruit?)

Possible alternative to South Africa

China?? Chemical / electronics? Possible language issues

Egypt?? Food? Textiles? GFSI experience, but current political climate difficult

UNIDO Deputy to the Director General Taizo Nishikawa» “Industry plays a paramount role in

achieving sustainable development and business partnerships are indispensable.”

» “The GSCP is one of the most influential groups of private sector manufacturers and retailers that address social and environmental sustainability of their supply chains; we therefore attach great importance to expanding our cooperation with the GSCP and are committed to making full use of our resources to substantiate this important partnership”.

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www.gscpnet.com

Didier BERGERET d.bergeret@theconsumergoodsforum.com»

Questions?

Thank you!

Activity Source of fundingDevelopment/adaptation of Training

packages, assessment tools, software, translation of material…

UNIDO/donors/academia

Local Capacity Building and training of trainers

UNIDO/donors (Buyer in kind – HR/logistics)

Pilot implementation (training, assessment, mentoring/couching,

upgrading…)

UNIDO/donors, cost-sharing with buyers, suppliers and local institutions/schemes (i.e.

IMC in Egypt, SME Coro Malaysia...)

Roll-outBuyers, suppliers and local

institutions/schemes (UNIDO technical guidance)

BUSINESS MODEL