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Redefining Food System Value and Risk3 April 2019Montreux, Switzerland

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Welcome & Opening Remarks

Diane Holdorf, WBCSD and Ruth Richardson, GAFF

Company Perspectives

Danone, Nestle, Olam, Syngenta, Yara

Impact Valuation TrendsMark Gough, Natural

Capital Coalition

Opportunity & Live Survey

WBCSD

Live Survey & Wrap-up

Eva Zabey, WBCSD

Agenda

Breakout Activity & Report Back

WBCSD

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4 5 6

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Ruth Richardson, Executive Director, Global Alliance for the Future of Food (GAFF)

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GLOBAL ALLIANCE FOR THE FUTURE OF FOODWORLD BUSINESS COUNCIL FOR SUSTAINABLE DEVELOPMENTRedefining Food System Value and Risk

April 2019

@futureoffoodorg@RuthOpenBlue

futureoffood.org

25 FOUNDATIONSwith both longstanding and new-found

commitments to food-systems change

addressing issues related to global food

and agriculture at different scales,

on diverse issues, and from a multitude

of perspectives.

GLOBAL ALLIANCE FOR THE FUTURE OF FOOD | futureoffood.org @futureoffoodorg@RuthOpenBlue

• Agropolis Fondation

• Azim Premji Philanthropic Initiatives

• Barilla Center for Food & Nutrition

• Cariplo Fondazione

• Christensen Fund

• Clarence E. Heller Foundation

• Crown Family Philanthropies

• Daniel et Nina Carasso Fondation

• David and Lucile Packard Foundation

• David Rockefeller Fund

• Gordon and Betty Moore Foundation

• GRACE Communications Foundation

• Heinrich Böll Stiftung

• 11th Hour Project

• J.W. McConnell Family Foundation

• McKnight Foundation

• New Field Foundation

• Oak Foundation

• Owsley Brown Charitable Foundation

• Rockefeller Foundation

• Swift Foundation

• Thread Fund

• Tudor Trust

• V Kann Rasmussen Foundation

• WK Kellogg Foundation

GLOBAL ALLIANCE FOR THE FUTURE OF FOOD | futureoffood.org

THE GLOBAL ALLIANCE FOR THE FUTURE OF FOOD IS A STRATEGIC ALLIANCE OF PHILANTHROPIC FOUNDATIONS WORKING TOGETHER AND WITH OTHERS TO TRANSFORM GLOBAL FOOD SYSTEMS NOW AND FOR FUTURE GENERATIONS.

OUR MEMBERS


The future of food is at stake and the status quo is jeopardizing the efforts of many foundations, governments, businesses, farmers, and others to promote food access, food security, food equity, human health, and a sustainable environment.

TRANSFORMATIONAL CHANGE IS NEEDED.

GLOBAL ALLIANCE FOR THE FUTURE OF FOOD | futureoffood.org@futureoffoodorg

@RuthOpenBlue

Net calorie availability delivered in the most efficient way possible?

OR

Feed all people well and equitably through a diversity of channels without harming the planet?

OR

Healthy, equitable, renewable, resilient, and culturally diverse food and agriculture systems?

OR…?

FOOD SYSTEMS TRANSFORMATION

IF WE CHANGE OUR OBJECTIVES,WE CHANGE THE SYSTEM.


@RuthOpenBlue

OBJECTIVE:

Healthy, equitable, renewable, resilient, and culturally diverse food and agriculture systems

CHALLENGE:Our evaluations of Food Systems mostly use the narrow lens of “Productivity Per Hectare”…which reinforces “business as usual”

There are HUGE externalities along food value chains that must be acknowledged, measured, valued, and managed …

… therefore Systems thinking is needed through a universal and comprehensive evaluation framework

FOOD SYSTEMS TRANSFORMATION


@RuthOpenBlue

THE WHY OF TCA?


@RuthOpenBlue

• Currently eco-agri-food systems are being viewed and evaluated through a narrow, incomplete and distorting lens called ‘per-hectare-productivity’

• This does not give us the whole picture

• We need comprehensive, holistic, inclusive valuations of eco-agri-food systems

• With a more comprehensive valuation we can assess interdependencies, priorities, risks, and trade-offs

• And thereby highlight systemic solutions / levers that can help the global community - private sector, governments, farmers, and others - to take up true cost accounting

• >> TCA gives us better information to make better choices



nature, June 2018

http://teebweb.org/agrifood/


@RuthOpenBlue

http://teebweb.org/agrifood/

THE HOW OF TCA?


@RuthOpenBlue


@RuthOpenBlue

TEEBAGRIFOOD FRAMEWORK


@RuthOpenBlue

“VALUE- ADDITION” Production

Value Chain Stages

Visible & Invisible Flows

Natural Land-scape

Infra & Mfg

Farm

Captured in SNA (Profits, Wages, Taxes - Subsidies, etc)

The narrow field of view of “per hectare productivity”

is not a comprehensivevaluation framework …

The narrow field of view of “per hectare productivity”..

TODAY’S DOMINANT LENS


@RuthOpenBlue

Social Values (food security; gender equity; decent work)

Risks & Uncertainties (Resilience; Health; etc)

“VALUE- ADDITION” Production Processing & Distribution Consumption

Value Chain Stages

Visible & Invisible Flows

Natural Land-scape

Infra,Equipt,Inputs

Farm Wholesale F & B Retail Industry/ Household/ Hospitality

Waste Mngmt

Captured in SNA (Profits, Wages, Taxes - Subsidies, etc)

Provisioning Services (Materials, Energy, etc)

Regulation & Maintenance (Soil, Water, Habitat, etc)

Cultural (lifestyle, heritage…)

Health (Nutrition, Diseases, Antibiotic Resistance, etc)

Pollution (Nitrates, Pesticides, Heavy metals, waste disposal, etc)

Emissions (CO2 ; CH4 ; etc)

The narrow field of view of “per hectare productivity”..

VS TEEBAGRIFOOD FRAMEWORK

TEEBAGRIFOOD APPLICATIONS


@RuthOpenBlue

THE WHAT OF TCA


@RuthOpenBlue

To contrast two or three different corn systems (i.e. conventional, sustainable and diversified/agroecological, or niche market producers) in the Mississippi Basin, USA where corn is a dominant commodity in the region with significant environmental, health, social and cultural externalities, incentivized by agricultural policy and subsidies, to reveal opportunities for shifting practices, policies, and subsidies to improve outcomes across the value chain from production to consumption.


CORN SYSTEMS IN THE MISSISSIPPI BASIN


@RuthOpenBlue

To apply the TEEBAgriFood framework at country level across Africa and in Brazil, China, India and Mexico. Across Africa, the application will feature a regional narrative with national case studies on agricultural systems, practices, products, and policy scenarios. In Brazil, China, India, and Mexico the focus will be on moving towards a level playing field by avoiding unfair competition through low environmental standards.


COUNTRY-LEVEL STUDIES


@RuthOpenBlue

IUCN: We must assess costs and impacts – positive and negative – of key food systems with an aim to reforming public finance, including subsidies, taxes and incentives aligned with sustainability objectives

GLOBAL COMMONS: “What’s the one dial to look at in a crashing plane?”

EAT LANCET COMMISSION: “We recommend an expert panel be set up to model different economic interventions, noting the work already underway from UN Environment Programme’s initiative, The Economics of Ecosystems & Biodiversity for Agriculture and Food.”


THE IMPERATIVE


@RuthOpenBlue

• What is the true value of true cost accounting and how far can it take us? What else is needed?

• Do we need to move beyond a strict “TCA frame” to a “values and impact frame”?

• How do we deepen our knowledge and practice vis-à-vis identifying and measuring broader drivers of value creation – human, social, natural, and intangible capitals?

• How is TCA best applied and used?• What’s the advantage of being ahead of the curve in adopting TCA and how do

we provide guidance to CEOs, boards, and shareholders?• Can we develop and/or integrate tools so that we don’t overburden companies,

farmers, and other end users?• How do we guide end users regarding what they do with the implications of the

results?


QUESTIONS


@RuthOpenBlue

@futureoffoodorgfutureoffood.org

• COLLECTIVE ACTION FOR A MORE SUSTAINABLE, SECURE AND EQUITABLE FUTURE OF FOOD

Company Perspectives

Marie de Muizon

Danone

Karen Cooper

Nestle

Ravi Abeywardana

Olam

Varun Vats

Syngenta

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Bernhard Stormyr

Yara

Mark Gough, Executive Director, Natural Capital Coalition (NCC)

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True Value of FoodAgri-food System Impact Valuation and Risk Assessment

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We work with business to improve decision-making and external

disclosure, which will transform the financial system to reward the most

sustainable companies.

#HealthyPeopleHealthyPlanetWe work with business to develop and implement ambitious, science-based

solutions to transform food and agriculture systems for healthy people

and a healthy planet.

• Business Case: The business case for investing in sustainability is not always clear, especially when short-term profit is the top concern

• Value of Sustainability: The mainstream financial system does not consistently reward the most sustainable companies – it’s hard to measure and value sustainability today

• #HealthyPeopleHealthyPlanet: The agri-food sector depends on healthy people and a healthy planet – both of these resources are being compromised by business-as-usual

• Risk: A poor understanding of impacts and dependencies presents significant risk to companies – climate change, biodiversity loss, the dual global health crises of over- and under-nutrition, and the imperiled livelihoods of some of the world’s most vulnerable communities are at stake

The Problem

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• Purpose: Improve how companies measure and value 1) impacts on people and the planet, 2) dependencies on natural, social and human capital, and 3) risks of continuing business-as-usual

• Proposed Output: Develop guidelines for impact, dependency and risk valuation for agri-food companies that are:• Actionable

• Prescriptive

• Generally-acceptable

• Scientifically-robust

• Outcome: Consistent measurement and valuation approaches will enable better decision-making and more rigorous disclosure practices, which will inform policy-making and investment decisions, which will, overtime, transform the food system and reward the most sustainable agri-food companies.

The Opportunity: WBCSD’s Vision

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Generally-accepted frameworks for business to identify, measure and

value its impacts and dependencies on natural, social and human capital.

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Measurement and Valuation Frameworks

2016 20192016 2018

Collaboration Opportunities

Natural Capital Coalition (NCC) Multi-stakeholder-led; center of gravity for impact valuation for the agri-food sector. Recommended partner for proposed guidance document

Social and Human Capital Coalition (SHCC) Multi-stakeholder-led; likely joining forces with NCC later this year

Impact Valuation Roundtable (IVR) Business-led; economy-wide focus

Integrated Profit and Loss Initiative (IP&L) Business-led; economy-wide focus; WBCSD work would likely defer to economy-wide valuation factors developed by IP&L; WBCSD on the Stakeholder Advisory Board

Accounting for Sustainability (A4S) Business-led; prescriptive accounting methods

Big 4 Consulting Firms Business-led; various methods; not always transparent, but some methods will be made public as part of IP&L

Smaller Consulting Firms Business-led; various methods; not always transparent

Oxford Food System Impact Valuation Initiative (FoodSIVI)

Academic partner

Global Alliance for the Future of Food (GAFF) Leading True Cost Accounting (TCA) Community of Practice and TCA Accelerator

Guidance Document on Impact, Dependency and Risk Valuation for the Agri-food Sector

Generally-accepted / Multi-stakeholder-led

Business-led

Open/Flexible Prescriptive/Comparable

IVR

IP&L

Consulting Firms

FoodSIVI

GAFF

A4S

NCC SHCC Proposed Guidance Document

Guidance Document on Impact, Dependency and Risk Valuation for the Agri-food Sector

Generally-accepted / Multi-stakeholder-led

Business-led

Open/Flexible Prescriptive/Comparable

Pros: Enables comparison across companies; Potential to directly influence policy and investment decisions

Cons: Complicated and difficult to develop; some areas are immature

Pros: Fast, targeted to WBCSD-members

Cons: May not be seen as reputable by non-business community

Pros: Accepted by civil society, government, scientists, farmers etc. Also, already exists – NCC and TEEB frameworks

Cons: Longer time to complete as consultation process is required

Pros: Already exists –NCC and TEEB frameworks

Cons: Subject to a high-degree of interpretation; Not possible to compare companies to each other

1. Understand the landscape of impact valuation approaches, frameworks and datasets of coefficients, through a research partnership with Oxford’s Food System Impact Valuation Initiative and the Global Alliance for the Future of Food.

Final Paper: Dec. 2019

Steering Committee/Funders:

2. Develop actionable, prescriptive, generally-acceptable and scientifically-robust guidelines for integrated impact, dependency and risk valuation for agri-food companies.

Proposed Approach

True Value of Food: Agri-food System Impact Valuation and Risk Assessment

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3. Engage with, and inform,investment decision-makers on material agri-food sector risks and how companies are managing them.

WBCSD is scoping these topics and we

are seeking your input today!

How it works:

1. Divide into groups of three, discuss questions related to Purpose. Record main ideas on post-its. (9 min)

2. Change groups, discuss questions related to Scope. Record main ideas on post-its.(9 min)

3. Change groups, discuss questions related to Development Process. Record main ideas on post-its. (9 min)

4. Finish noting feedback/ideas on post-its and place post-its on wall under respective themes – Purpose, Scope or Development Process. (5 min)

5. Divide into three groups, one for each theme. Cluster the post-its around common ideas/topics. (15 min)

6. High-level report back from each group. (3min/group)

Seeking your inputBreakout Activity – Please help us refine and strengthen our work. Your feedback is valuable!

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Wrap-up

Final comments and reflections from Eva Zabey, WBCSD

To learn more or get involved further, please contact Emily Grady ([email protected]), Matt Watkins ([email protected]) or Eva Zabey ([email protected])

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mailto:[email protected]



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