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Fore more information : ESIA consulting 3, Grande Rue de Saint-Clair, 69300 Caluire - France email : ogirad@esiaconsulting.com website : www.esiaconsulting.com

THE EXPERTISE OF HUMAN SCALE

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What is ESIA ? Ethanol and Sugar Impact Analysis is an agency established to offer a specialised audit service for producers in this sector. The audit will focus on the social, communal and environmental impacts of sugar/ethanol production and will identify areas in which the producer can enhance their sustainability. Upon receiving an audit, producers will be awarded the ESIA label to indicate they have undertaken a significant step in reaching sustainability targets.

How will the auditing process work? Pulling together international sugarcane experts and local partner organisations, ESIA will create a 3-person auditing team with experience in the relevant social, communal and environmental aspects of running a modern sugarcane business. The team will visit the miller’s farms and factories and speak with workers, civil society groups, and local church and political leaders where necessary to form a holistic picture of the impact of the producer’s activities. The will require a one-off visit lasting between 7-10 days per mill and will be minimally disruptive to business. In addition, as the audit and label award will be carried out exclusively by ESIA – an agency without an eco-

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What will the audit cover? The first set of criteria that the auditing team will take into account is state and national law and to ensure that, as a minimum, these legal obligations are being met. The second set of criteria the auditing team will report on is ESIA’s unique synthesis of current industry standards and benchmarks. This synthesis draws on criteria promoted by national governments, leading companies and non-governmental organisations in the industry, and university academics. In particular, ESIA refers to the: - - -

UK’s Renewable Transport Fuel Obligation Better Sugarcane Initiative’s forthcoming certificate Roundtable on Sustainable Biofuels’ forthcoming certificate

The internationally endorsed criteria regarding social protection and respect for the environment contained within these standards are then molded to the specifities of the sugarcane feedstock and local area by ESIA. In short, everyone is encouraged to meet the same goals, but in their own individual ways.

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Why should producers have an audit?

Carrying out an audit should be seen not just a public service but also as an investment in the short-term and long-term profitability of a company. There are many reasons why reviewing practices and working toward a more sustainable future is good for business: 1) Prevents conflicts which could damage production or assets. This could include disagreements with workers leading to strikes or troubles with indigenous communitites leading to land battles. It is well known how prevention is better than cure in matters of health, and the same can be applied to the health of a company. 2) Increase efficiency and lower running costs. Based on the findings of the ESIA consultants and their insights based on best practice initiatives worldwide, a framework can be put in place to review and develop business strategy. Crucially, this development will be through progressive improvements such as training schemes for workers to increase their productivity or better dialogue with suppliers to improve chain management. As they are sustainable, such changes will persist in the business culture and are thus more likely to have positive spillover benefits into other areas of the company. 3) Enhance public recognition and attract the best business. Being in possession of an independent auditing label signals to potential employees and to customers that the company is committed to developing itself. In a competitive marketplace, such recognition can help you stand out from other companies by providing a visible assurance of your business ethics. 4) Acts as a stepping stone to future certification. Concerns about the detrimental impacts of sugar and ethanol production have dramatically increased in recent years, prompting many countries and buyers to develop certification standards.

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As ESIA’s criteria dovetail with those of the leading certification bodies, our audit will help prepare a company to undertake accreditation by highlighting likely areas for improvement and prompting the changes needed to meet the exacting metric standards. 5) Provides a tool for pro-active brand management. The report that ESIA will handover to the company upon completion of the audit can be used to demonstrate to journalists or public officials the efforts being made to improve corporate social responsibility. As an objective report carried out by a third party, it will provide a convincing account of workplace conditions, community relations and environmental stewardship that an internal review is unlikely to offer. What will the audit look like? The final report will contain an overview of the team’s findings and offer an analysis based on two strands of organizational development. The first strand relates to management practices and will suggest ways in which tasks such as record keeping, staff training, or monitoring and evaluation could be improved. The second strand relates to performance standards and includes verifiable targets for sustainability requirements such as the reduction of certain pesticides or the availability of sanitary services, on the one hand, and guidelines to be used as a framework for the better deployment of resources, on the other. If you are interested in working with ESIA or would like more detailed information on our service, please contact Oliver Girard at ogirard@esiaconsulting. com

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Ethanol and Sugar Impact Analysis is an agency established to offer a specialised audit service for producers in this sector.

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