SUSTAINABILITY – FROM PRINCIPLE TO PRACTICEWWW.GSA-SUSTAINABILITY.COM

Today, more than ever before, life must be characterisedby a sense of Universal responsibility, not only nationto nation and human to human, but also human toother forms of life. DALAI LAMA, TENZIN GYATSO

Global Sustainability Associates (GSA) is a developmentconsultancy with unique expertise in sustainable agriculturalprojects. We identify opportunities for enhanced sustainabilityin global commodity sectors. GSA services the agriculturalsector in addition to other public and private sectorsworldwide with a broad range of implementation solutions.

Today's increasingly susceptible global setting involvesstrong commitment to meeting ongoing standards. GSAoffers bespoke evaluation of sustainability compliancerequirements and quality standard implementations forRSPO, OHSA, ISO 140001, amongst others. Long standingrelationships have been fostered with trusted associatesand partners to provide several key services, includingStrategy and Policy Development, Implementation of Policyand Standards, Organisational Capacity Building, ProgressAssessment, Research and Innovation, StakeholderEngagement and Good Governance.

Clients may engage in the GSA Sustainability Process Cycleat any stage. Our approach draws from a rigorousunderstanding of standards implementation to explore,customise and deliver exceptional strategies for our client'ssustainable practices and future.

VALUESOur relationships guide our practices and provide the basisfor a shared understanding of our work.

OUR CLIENTSWe believe in building trust with clients who have a genuineresolve to contribute to sustainable development throughchanges in policies and practices.

OUR ASSOCIATESWe hold ourselves accountable to our clients for ourassociates and all output and provide mechanisms forfeedback and improvement.

OUR WORKThe requirements of our clients are met with professionalismand honesty. Our work is timely, equitable, transparentand confidential and we do not compromise our integrityor that of our clients.

GLOBALSUSTAINABILITYASSOCIATES

Global Sustainability Associates developsinnovative and sustainable practices forbusinesses facing global sustainability challenges,creating positive change while considering therequirements of future generations.

SUSTAINABILITY – FROM PRINCIPLE TO PRACTICE

The world cannot continue to sustain itself at the existingrate. The human population is growing and resources arebeing depleted. The world is more intimately connectedthan ever before and neighbours are no longer determinedby distance. To meet the needs of this changing world weneed a GLOBAL OUTLOOK.

Humans have adjusted almost 35 percent of the earth’ssurface for crops and cattle grazing and each year thelinked world economy brings more people abundancewhile others experience increasing poverty. Simultaneously,continuing population growth creates movement patternsfrom rural to urban areas and an ongoing need for resources.These factors combined generate pressure to become moredevoted to controlling the ENVIRONMENTAL and SOCIALimpact of humans.

Our footprints are determined both by how large apopulation is at a specific location and also on prosperitylevels. For instance, the food intake of a population in aspecific geographic location affects its dependency onlocally produced or imported foods. External pressure fromsociety and governing bodies focuses on sustainable foodproduction and questions a product’s origins and impacton the environment and social structures.

These effects of globalisation and government directioninfluence the agricultural sector and beyond to reachfinancial markets. Retailers or financiers, for example, relyon assessing the risks, security and traceability of a productto accurately make financing decisions or ensure foodproduction safety. Identifying the origin of raw materialsand resources and the conditions from the point of origin

A GLOBAL OUTLOOK

to manufacturing and ultimately determining the relatedrisks to sustainability requires the application ofDUE DILIGENCE.

From governments and multi-nationals to large and smallscale business, everyone must play a part in balancing thedemands of development and operations with theenvironmental impact on people, nature and the earth’sclimate and resources. CLIMATE CHANGE impacts all ofus. Solutions come in the form of alternative sources ofenergy and improvements of production on current cultivatedareas through GOOD AGRICULTURAL PRACTICES.

An organisation can be pressured to report on its impacton the environment or society as a result of its operationsdue to both law and public opinion. Its impact can beassessed and mitigated and social changes addressed bymeans of a Social and Environmental Impact Assessment.New projects should incorporate transparency, timeliness,consent, equal opportunities and gender balance in theirstructure from the outset. Impact Assessments will help inidentifying and communicating with stakeholders to providepractical yet beneficial solutions that meet needs at boththe corporate and project level.

SOLUTIONS

DUE DILIGENCEThere is opportunity to differentiate an organisation andincrease shareholder returns through the implementationof sustainabile principles. Emphasis on due diligence hasshifted from the 'green consumer' to the 'responsible retailer'and 'responsible financier', placing the reputation of agroup's business at stake if there is inconsistent adherenceto these principles.

Supply chain reviews are an integral aspect of due diligence,providing organisational focus on the environmental andsocial aspects of a business's operations. Substantial businessbenefits may be gained through a combined effort ofleadership, focus, practical initiatives and improvedprocesses, taking into consideration the interactions of thesupply chain players and amount of recyclable waste inthe succession. During a supply chain review, GSA drawson its wide breadth of expertise in specialised markets suchas renewable energy, environmental technology and wastemanagement to identify business opportunities as well ashighlight the investment implications as a result of keyfindings in a cohesive and consistent manner.

Benefits: Sustainable goods and services, shareholder returns, corporatevalues, risk management, external pressure control, market and customerrequirements, efficiency improvements, cost reduction, current and futurelegislation, increased efficiency and competitiveness

Related Standards: RSPO, Equator Principles, IFC Performance Standards,Cramer Principles

CLIMATE CHANGEThe direct relationship between climate change andagriculture is cyclical, ultimately affecting the world's foodsupply. On one side global warming contributes to climatechange and affects rainfall, which in turn alters agriculturalyields; on the other agriculture produces the greenhousegasses that lead to global warming.

GSA mitigates the future course of agriculture in our changingworld through the proper implementation of sustainableprocesses for natural agricultural and socioeconomic systemsthat govern food supply and demand.

Benefits: Ability to accurately calculate impact, determine mitigationand reduce emissions, cost savings from control and alternative agriculturalprocess inputs, biomass recycling and alternative energy source options,adaptation through crop adjustment or planting materials, balanced approachof land use and integrated ecosystems, model analysis to offset options

Related Standards: Cramer Principles, EU Biofuel Directive, CDM, ISO14064, LCA Methodology, GRI, Gold Standard for CDM

ENVIRONMENTAL RESPONSIBILITYAll activities impact the environment. Whether these impactsare beneficial or detrimental depends on the nature of theactivities and their geographical location. New projects needto identify and mitigate these activities in a proactive manner,whilst existing operations need to manage these items undera continuous improvement programme. In addition, loss ofhabitat and biodiversity are key stakeholder issues. Aprecautionary approach to landscape planning in the short,medium and long term is required. GSA can provide thisstructured approach and determine the priority of

implementing RSPO, ISO 14001 and other standards throughan assessment of impacting factors and control mechanisms.

Benefits: Proactive risk management approach to the environmentalfootprint, establishment of key performance indicators, cost reductionsby control of inputs and outputs and designing out problems at source,improved environmental performance through identification and controlof emissions and waste, assurance through measuring and monitoring ofenvironmental performance

Related Standards: RSPO, ISO 14001, HCVF, Emissions Standard

SOCIAL CONSIDERATIONA fundamental route towards sustainable positive changefor existing and new projects is led by an environmentaland social impact assessment. The Roundtable on SustainablePalm Oil (RSPO) addresses challenges faced by communitiesin terms of environmental and social structures through itsstandards on land rights, transparent information sharing,gender balance, employee benefits, biodiversity andconservation values, amongst many others.

New developments and processes have a significant impacton stakeholders, changing the social structure people livein, the health situation, gender balance, empowerment andfinancial stability. GSA helps companies formulate, developand implement programmes. Through adhering strongly tothe participating principle, GSA can guide a company toaddress the issues presented by stakeholders as well asredress its own internal challenges.

Benefits: Transparency and middle ground for discussion through disputeresolution and grievance management, good relationship management,improved quality of living standards, empowerment of marginalised

communities and women, fair employee benefits, long term sustainabilitythrough early impact indication, good governance, understanding and consentof stakeholders, community sustainable development, educational contribution

Related Standards: RSPO, SA8000, OHSAS, ISO, HCVF, ETI

GOOD AGRICULTURAL PRACTICEGood Agricultural Practice (GAP) directly contributes tocrop production and the conservation and enhancementof natural resources for economically viable and sustainablefood production. GSA advises on GAP from a thoroughunderstanding between biology, the environment and landmanagement systems applied to a wide range and size offarming systems.

Economic returns can be improved through a balancedapproach between inputs such as fertilizers, proper timingand application of care for crops, food safety andenvironmental protection. GSA works with smallholdersand plantations alike to develop systematic solutions thatbest meet their agricultural needs.

Benefits: Social conservation techniques minimised impact of erosion,pest and disease control, maintenance and improvement of ecologicaldiversity, minimised purchased inputs and non-renewable fuel resources,improved soil fertility, sustainable and cost effective irrigation management,increased smallholder outputs

Related Standards: EURGAP, MYGAP, Fair Trade, Organic

OUR SERVICES

IMPLEMENTATION OF POLICY & STANDARDSWith an established destination, the starting point must berecognised. GSA provides the Corporate Road Map to guidethis process from start to finish, be it within the RSPO, ISO,OHSA or social accounting standards.

• Conduct a baseline identification of issues and constraints• Assess practices in all aspects of an organisation's activities• Initiate and coordinate EIA, SIA, OHSA, HCVA and rapid

biodiversity assessments• Analyse current gaps• Employ corrective actions required to bridge the gaps• Map, evaluate and control key activities• Develop solutions to measure and monitor performance• Verify operational control• Report on performance

ORGANISATIONAL CAPACITY BUILDINGOnce the journey has begun, the organisation must buildits capacity to complete the process. Working at all levels,GSA aligns individual and organisational requirements toensure continued effort through awareness, trainingand development.

GENERIC• Conduct an institutional framework assessment• Advise on human resource management• Cultivate a learning culture within the organisation• Provide technological transfer

SPECIFIC• Structure awareness sessions from board to field operators• Offer targetted training to meet the organisation's needs• Develop custom training courses• Provide course content and materials• Implement in-house trainers• Put forward training plans

No one service can provide solutions to all issues and challengesfacing an organisation wishing to pursue a sustainability initiative.By aggregating the talents of its associates, GSA brings synergyand added value to its clients.

Project managing all aspects from start-up, maintenance andreporting, GSA provides a comprehensive and personalisedservice to its clients, ensuring that they are accompanied throughall steps of the journey. For those who have already started, weoffer assurance that they can continue to perform to their chosenstandard and help them to go beyond compliance. In addition,for those organisations already comfortable with their strategy,progress and performance, we offer specific support in areas ofperceived weakness.

STRATEGY & POLICY DEVELOPMENTEach organisation has its own unique strengths andweaknesses. GSA helps crystallise these strengths by givingtargetted direction and clear goals. GSA acts as a compassto take an organisation beyond compliance as it journeystowards sustainable performance.

• Secure top-down commitments to thesustainability initiatives

• Identify complete sustainability goals• Create a structured business plan which can

be monitored and reviewed• Develop environmental and social policies• Implement programmes to realise change• Build a corporate identity and branding• Improve agricultural, environmental,

and social performance• Deliver improved profitability

and competitiveness

OUR SERVICES

STAKEHOLDER ENGAGEMENTWhen a company begins its sustainability journey, it doesnot travel alone. In addition, new relationships form as thejourney progresses. GSA engages the organisation with thisdiverse group, ensuring that both shareholder and widerstakeholder issues are incorporated into business plans.

• Identify an organisation's stakeholders• Build bridges between clients and stakeholders and

maintain dialogue• Provide tools to solve problems and create opportunities• Facilitate community development planning and

outreach programmes• Implement the principle of free, prior and

informed consent• Produce sustainability reports that are material, complete

and responsive• Ensure stakeholders are included in continuous

improvement programmes

GOOD GOVERNANCEEnsuring the final destination is reached requires endurance.The process demands ownership and acceptance ofresponsibility in managing stakeholder expectations.GSA assists companies to assume this responsibility andtake the appropriate action.

• Manage risk at both the strategic and operational level• Develop key performance indicators• Focus corporate social responsibility• Comply with all applicable legislation• Implement due diligence across all operations• Develop transparency and traceability along

the supply chain• Incorporate smallholders as an integral part of

the supply base

PROGRESS ASSESSMENTAs with any journey it is essential to stay on track. Systematicassessment allows an organisation to know the distancetravelled and the rate of progress. GSA measures andmonitors performance against a Corporate Road Map,ensuring each organisation is aware of its status and locationat all times.

• Ensure timely review of all implementationassessments (SIA, EIA, etc.)

• Assess continuous improvement programmes• Update social, environmental, OHS, legal,

document registers• Create site-specific operation checklists• Provision of centralised auditing tools• Identify key data requirements• Advise and facilitate specific standards for data collection,

storage and retrieval (OHSA 1800)• Put forth a set of interim performance indicators• Develop reporting structures and formats• Integrate existing programmes with new initiatives• Evaluate performance of qualitative initiatives• Pursue specific projects from conception to completion

(gender and diversity, community development, livingwage assessment, etc.)

RESEARCH & INNOVATIONThroughout the length of a journey change occurs, oftenbringing with it new insights and better practices.Incorporating these innovations, whilst at the same timemaintaining the focus and final destination, can bechallenging. GSA seeks to continuously improve performanceby adopting the practical applications of this thinking. GSAprovides technical assistance in the following disciplines:

• Improve planting materials selectionand performance

• Advise on agronomy and field practices• Counsel on use of precision agriculture and mapping• Guide environment impact reduction strategies• Provide biomass recycling• Instruct on agrochemical use and disposal• Advocate waste stream management, including reduce,

recycle and reuse strategies

GSA & RSPO SUSTAINABILITY PROCESS CYCLE

Determines internal understandingof a business' place in the RSPOSustainability Process Cyclethrough independent analysisusing a toolkit available from GSA.

The effects of global warming and current pressure for food productionmake it crucial for the agricultural sector to produce in a sustainable manner.Oil palm is no exception and, due to its sphere of operations, is underintense scrutiny from beyond the industry. The multi-stakeholder Roundtableon Sustainable Palm Oil (RSPO) was created in response to these concerns.

As one of the pioneers in the Palm Oil Sector, GSA has been directly involvedin the implementation of the RSPO standard. Our multi-disciplinary teamof professionals helps organisations facing these challenges by providingin depth solutions to contemporary environmental and social business issues.

GSA can begin work at any level or at any point along the GSA RSPOprocess and never loses sight of the fact that companies are there primarilyto produce palm oil.

GSA's scoping questionnaireaccurately assesses a business'risks in respect to RSPOcompliancy.

GSA verifies the ScopingAssessment by providing an on-site field assessment. We provideoutput in the form of major, minorand observational improvements.

A Corporate Road Map isdeveloped and implemented.Other safety, environmental andsocial standards are implemented.New research and innovations areincorporated at this stage to fullycustomize implementation.

DOCUMENTATIONGSA provides supplementaldocumentation to aide in theimplementation process.

Verification that majorrequirements are met. Internalpre-audits that mimic the RSPOexternal audit and highlightdeficiencies.

IMPROVEMENT PLANSPresentation of plans for meetingminor non-conformances andobservations.

Assurance that a companyis prepared prior to thethird party audit.

On-site assistance throughoutthe audit.

Should major non-conformancesbe raised at the audit, thecompany has 60 days to rectify.GSA responds rapidly to suchsituations.

IMPROVEMENT PLANSImmediate response for majornon-compliances.

Presentation of plans for meetingminor non-conformances andobservations.

All minor requirements that arenot met must be solved for thefollowing year.

SELF-ASSESSMENTPHASE 4REASSURANCEVERIFICATION

PHASE 5THIRDPARTY AUDIT

PHASE 1SCOPINGASSESSMENT

PHASE 2BASELINEASSESSMENT

PHASE 3SYSTEMIMPLEMENTATION

PHASE 7MEASURING& MONITORING

PHASE 6POST-AUDITCORRECTIVE ACTIONS

Continual improvements areimplemented and assessedduring this stage.

PHASE 8COMMUNICATIONS & REPORTING

This phase takes the organisation beyond compliancethrough the establishment of key performance indicatorsand communication of these items within a CSR strategy.

CONTINUAL PROCESS

DESIGNED BY Lucidity

Simon has twenty-three years of management experiencein the commercial agriculture sector with thirteen at a seniorlevel in Oil Palm. He has been involved with the Roundtableon Sustainable Palm Oil (RSPO) since 2002. He is currentlydirecting management and standards development ofsustainability programmes in mills and estates acrossMalaysia, Papua New Guinea and the Solomon Islands. AsDirector of Research of the Dami Oil Palm Research Station,he heads a multi-disciplined research group in Agronomy,Plant Breeding, Biotechnology and Environmental Science.

Petra provides the tools to solve problems and createopportunities in relation to global supply chains and has afull understanding of on-the-ground implications. Herbackground in Biochemistry and international experiencewith quality management consultancy, includingenvironmental and social impact assessments, led her tofocus on renewable energy in the agricultural and biofuelsectors. Now a Senior Associate with GSA, Petra leadsclients to create a positive impact through advisement onsustainability issues across cultural contexts in the food,energy and agricultural sectors.

DR. SIMON LORD Director DR. PETRA MEEKERS Senior Associate

Global Sustainability Associates75A Neil RoadSingapore 088902T +65 6227 6246/6247F: +65 6227 6297E: info@gsa-sustainability.comwww.gsa-sustainability.com

PRINTED ON 100% RECYCLED PAPER