BP4GG High Level Event 3 - Business Partnerships Tackling Climate Change

Business Partnerships for Global Goals COVID-19 Vulnerable Supply Chain Facility Business Partnerships as a Force for Good Learning Series

Business Partnerships as a Force for Good: Partnerships facilitating building back better and greener from the Pandemic

Business Partnerships Tackling Climate Change: Summary Briefing Z Ph ena ot bu o L cr am ed is it: i, C Le o m coa a C Fa on rm ce er pt in s A Gh fr an ic a a .

October 4, 2021

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Business Partnerships for Global Goals (BP4GG) is funded by the Vulnerable Supply Chains Facility (VSCF), a rapid COVID-19 response fund set up by the UK Foreign, Commonwealth and Development Office (FCDO), and managed by Mott MacDonald Ltd. The Facility partners with 20 UK and international retailers and brands, and 7 not-for-profit organisations, supporting over 292 suppliers across Bangladesh, Ethiopia, Ghana, Kenya, Myanmar, Tanzania, and Zimbabwe. It is providing economic, social, and health benefits to around 1 million women and men directly and indirectly.

BP4GG organised a high-level event as part of Business Fights Poverty’s Global Summit on 23rd September 2021. The key themes included: multi-party partnerships as an effective modality for tackling climate change; climate-smart farming; carbon emission reduction in trade routes; and integrating women’s empowerment into climate-smart approaches.

Details and highlights are available at Global Goals Summit 2021- Business Fights Poverty. Our videos showcasing the experiences of two cocoa farmers in Ghana who benefited from the UKAid funded BP4GG Programme were also released at this event, and can be found here: UK aid supports climate-resilient farming in Ghana – Doris’s Story - YouTube UK aid supports climate-resilient farming in Ghana – Suleman’s Story - YouTube

Keynote by Ian Felton, Team Lead, Responsible Business and Business Engagement, FCDO

Hello and thank you all for joining this learning event on Business Partnerships in Tackling Climate Change. Thank you to Business Fights Poverty for hosting a week of important discussions on the Global Goals. I’ll cover three areas: Firstly, I’ll say why we value the partnership between business, civil society, and the government and how that helps to achieve the sustainable development goals.

Secondly, I want to recognise the value of using the learning from this specific programme in the future. And thirdly, to look ahead to the COP26 Climate Summit in November in Glasgow I will repeat the call for action to business and civil society.

Firstly, we should acknowledge the role business already plays in helping to achieve the Sustainable Development Goals. While governments create the building blocks for economic development and the enabling environment it is business that takes the risk and ultimately creates the wealth to end poverty, fight inequality and protect the planet. The SDGs will not be achieved by 2030 without a partnership between government, business, and civil society. The UK is a strong supporter of the UN Global Compact which supports companies to align their operations

with ten universal principles around human rights, labour, environment, and anti-corruption. The UN Global Compact SDG Business Forum is taking place this week where business and governments will be continuing to work together on these enormous challenges.

Secondly, we are all keen to hear the lessons from those most closely involved in delivering the Business Partnerships for Global Goals (BP4GG) programme.

The timing of the roll out, at the start of COVID-19

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Flower worker packing roses in Kenya.

Photo credit: Karen Smith, BP4GG

required adaptation by all partners involved. So, a special thank you is well deserved to our lead delivery partner Mott MacDonald for maintaining the pace and for the results achieved. I look forward to hearing how they adapted to the new circumstances and delivered positive and sustainable changes to supply chains, including by lowering carbon emissions. Protecting vulnerable workers has been a key objective and product diversification has helped to create more secure livelihoods. While this programme addresses the agriculture and garments sectors across seven countries in Asia and Africa, reaching up to a million people, the lessons should be applicable more widely. I look forward to hearing about the successes and the challenges faced by project partners and of course how sustainable they consider the changes implemented so far will be. The partnership between government and the private sector is only partly about the funding for the project. Each party has brought significant and increasing contributions in kind as the project developed and showed its worth. Sharing ideas more widely through events like this and within our respective organisations is a potentially big win for the future.

Governments alone cannot solve climate change.

The business case for investing in low carbon goods and services is already made with estimates of global trade in them expected to grow, from just over 200 billion dollars in 2015 to well over 4 trillion dollars by 2050. Businesses that ignore the risk of climate change also place at risk their investments and future market opportunities.

So, the main ask is for businesses to join the Race to Zero and set ambitious net zero targets and take action to reduce emissions and build resilience.

Business can also join the Race for Resilience a global effort to mobilise cities, investors and civil society, for action to build climate resilience of the people most vulnerable to climate risks. We also want all new cars and vans to have zero emissions by 2040. Your business can join EV100 and commit now to the use of electric vehicles in your corporate fleet.

Let me conclude by saying that Economic development is the only known permanent route out of poverty. Countries that grow national income by building productive assets and transforming their economies can provide decent jobs for their workers, fund health and education systems and support social safety nets to protect the most vulnerable. We will use the lessons from this programme in the design of future partnerships. Thank you to all the businesses and not for profits involved, for sharing your approach to innovation in investment, in supply chains resilience, and in planning for a post COVID-19 recovery. On to Glasgow.

My third point is to re-issue the call to action to business and civil society in the run up to the COP26 Climate Summit in November in Glasgow, hosted by the UK. Climate change is happening.

Floods, wildfires, and other extreme weather are becoming more frequent and more severe in all parts of the globe. The case for urgent action is clear. Encouraging business to act is a priority.

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Fireside chat The importance of climate to Vulnerable Supply Chain Facility (VSCF) business partners in agriculture and garments supply chains | The view from senior executives.

Barry Clavin, Ethics and Sustainability, The Co-op

Ian Michell, Group Technical and Procurement Director, Flamingo Kenya

Masarrat Quader, Public Affairs and Stakeholder Engagement Manager, H&M Bangladesh

David Alder, Technical Director, MWW Ltd.

Link to recording here.

Summary notes

Ian Michell, Flamingo

Masarrat Quader, H&M •

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Transparency is key. H&M are working so that customers can find out which factory each product is made it, working with HIG index through which environmental impact of each product is tracked. This year H&M made this environmental impact data available to customers for a denim line. H&M would like to do this for products - make visible the amount of energy, water, and chemicals used per product so that customers can consider these factors when purchasing.

H&M are also thinking of services for customers for recycling, fixing and reselling products. For example, items can be brought in to store and are then assed for being recycled or reused.

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H&M is committed to be climate neutral by 2030 and climate positive by 2040.

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Government needs to put in place a conducive environment - prioritise greening the grid, invest in renewables, and incentivise private sector to innovate.

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Horticulture businesses need to be as climate responsible as possible, both by looking at reducing their carbon footprint and the wastage of perishable products.

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Flamingo are now carbon neutral in Kenya and Ethiopia for their vegetable and flower exporting.

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Flamingo's journey started with data capture to then understand where to act to get to climate zero.

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Flamingo are supplying more for online flower retail - looking to develop conservation grade and carbon neutral flowers.

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Being a green supplier is an important story for the consumer.

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Flamingo are exploring agri-capture - developing a climate management plan to see how their farming community can generate carbon credits.

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Flamingo are also looking to de-risk the climate impacts on their supply chain, including taking weight out of products for transport, through BP4GG looking at changing transit routes through sea freighting, and lastly growing closer to Europe and UK markets without adversely impacting Kenya growers.

Barry Clavin, The Co-Op •

People must be at the centre of the climate transition. Solve it for everyone or solve it for no-one. Climate justice is central to Co-op's core proposition. They will be working with suppliers, farmers, and producers as they can't do it without working with other people.

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This is the biggest peace time challenge we've faced.

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It is important to get a balance right between treating climate change as an emergency whilst not leaving people behind in making rapid changes to doing business. Many small farmers are involved in the transition – we need to work at a pace, but we have a lot of people to bring on the journey with us. We need to support this transition in communities.

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Changing a deeply established food system is going to take time - we can only more as fast as government support and infrastructure will allow.

David Alder, MWW Ltd. •

Improving resource management and environmental impact will improve the value perception of the product.

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It is important for businesses to act on climate to reduce reputational risk, and to and then get credit for their achievements.

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There remains a significant risk posed by lack of data, tools and an agreed methodology on how to measure carbon impacts. Collaboration is needed to upskill the global community

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Growers need help to invest in technology to adapt to climate change, and tools that measure the return on that investment.

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Often cutting cost and efficiencies are at the detriment to sustainability, climate change and water scarcity are not being accounted for in business planning.

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There remains a lack of legal enforcement by government to encourage and enforce adoption of green practices - though there are some barriers here to do this.

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Companies need to engage in the process collaboration is key, for instance to decarbonise long haul transport.

Asare Joseph, Cocoa farmer in Ghana.

Photo credit: Karen Smith, BP4GG

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Live Webinar

Cathy Pieters, Senior Director of Sustainable Ingredients and Cocoa Life,Mondeléz

Richard Fox, Sustainability Director at Flamingo Horticulture Limited

Jephthah Mensah, Operations Lead, Cocoa Life Ghana, Mondeléz

Isaya Muiru, Technical Manager/ Senior Trainer, FlowerWatch

Link to recording here.

1. How are collaboration and farmer centered approaches tackling climate change?

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The Cocoa Life programme is farmercentred. It is vital to understand them, their incentives to adapting to climate change, and the barriers they face. The Fairtrade and Cocoa Life teams on the ground carried out consultations with cocoa farmers to inform the design of the grant strategy. For example, Union leaders told the teams they would like to try a portfolio of income diversity activities, to spread the risk. That was taken onboard, and nine grants were awarded covering 37 income diversification activities. Over 6,000 farmers have benefited from participating. Of these 6,000, 71% felt that their livelihoods were more secure and 96% reported improved access to foods.

Transferring capabilities is key for sustainability. The Unions intend to continue activities that they started and have plans in place to do so.

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Collaboration is key and partnerships are essential to realizing systemic change.

Both Fairtrade and Mondeléz are committed to cocoa sector coordination. As permanent market actors, they have a long-term vested interest in the resilience of these supply chains.

NGOs, like Fairtrade, can ensure strong producer organisations and their buy-in for the programmes, also bringing expertise in design and implementation.

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BP4GG leveraged this strategic partnership, providing targeted funding for accelerated innovation. Thanks to the BP4GG programme, Fairtrade and Mondeléz were able to move quickly to respond to challenges relating specifically to the pandemic. Building on this existing partnership meant that we could make an impact on farmers lives in a very short time.

Although the project was only one year, the project was able to move quickly because of the structures already in place.

2. What have we learned about creating climate resilience from BP4GG’s work with cocoa and flower supply chains?

Key determinants of adoption of climate-smart production by cocoa farmers •

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Using existing relationships where possible.

The VSCF cocoa project was built on the existing Cocoa Life programme, so partnerships didn’t have to start from scratch, there were farmers already with some understanding and this project came to build on it.

Engage with the wider communities in which farmers are situated. Cocoa Life worked with the well-organised farmer cooperative unions which are groups of farmers with an administrative body at the district level which provides support to the wider community. The leadership was targeted, and they were given support to become champions. ‘Community Animators’ have received training, capacity building in order to mobilise the wider community. The benefit is that ‘farmers tend to listen to their own and want to work with their own’. A ‘community adaptation action plan’ involved the whole community in planning for adaptation to climate impacts.

Changing attitudes to entrenched ways of farming is challenging & takes resource.

When farmers are trained, they need resources to put what they have learnt into practice and to know what to prioritise and where to start (e.g., assessing the right seeds to plant). Farmers are habituated to managing uncertainty (e.g., erratic rainfall), through their own adaptation measures.

It is not easy to change these habits, especially if they have already proven to help with yields.

Flower sea freighting outcomes from BP4GG •

The COVID-19 pandemic meant the demand for flowers fell almost overnight. The number of passenger flights to Kenya also plummeted, as did airfreighting capacity.

When sales began to pick up in the middle of 2020, there wasn’t sufficient airspace, and what cargo was available was very expensive

as this was taken up with PPE. This put the freight of products to Europe and Britain at risk.

Sea freight is an alternative option but one with far longer travel time. Trails were conducted, focused on packaging and how protocols for how the products were sent.

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There have been very positive results.

Sending by sea vs sending by air has reduced the carbon impact by about 85%.

The industry is going to continue to expand. 25% of Flamingo’s products are now going by sea, and there is no reason why this cannot increase.

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There has been very positive support and cooperation from players in the industry.

After the trials were complete, more farms have joined together and started shipping flowers by sea, at least one container per week.

How to scale this opportunity to reduce carbon emissions in the flower supply chain •

Follow the VSCF model of pre-competitive collaboration with companies. Air freight is the Achilles heel for the Kenyan flower industry in terms of carbon footprint. Going forward, it is likely there will be regulations on declaring carbon footprint on specific products. That provides the business case for the industry to spend time and effort taking this forward, not just as individual companies.

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FCDO can bring together the flower and other industries, alongside the Kenyan government. All perishable goods industries can benefit by getting together and looking at the logistics, such as potential international ports as well, and working with relevant governments to improve these systems.

Ensuring women are incorporated into the value chain •

The wellbeing of women is a critical link to family food security, education, health, and child protection. The Cocoa Life project has embedded women's empowerment, e.g., specifying that unions had to come up with activities specifically for women. 82% of those earning new income because of the project are women.

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3. How can we continue to build resilience?

Incorporating women starts with seeing the women. Often the work women do is not seen or understood. To address this, for example, on cocoa farms the project is creating a space in communities where women can create a business model for owning the nurseries that supply arboriculture interventions on farms.

Identify specific roles for women and design every intervention so that women benefit.

This also comes from treating female cocoa farmers like the entrepreneurs they already are (e.g., many have business in transport and hospitality). Be responsive to the support they ask for in this capacity.

Invest in securing the supply chains of female-dominated industries. Flamingo’s workforce are 50% women, they are vulnerable if the supply chain is vulnerable. Finding alternative export routes reduces the risk of these women losing their jobs.

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FlowerWatch are investing in creating awareness of sea freight as a sustainable alternative to air freight, and in collecting data to build the business case for sea freight as a way of reducing carbon emissions.

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Mondeléz will be intentional and deliberate about seeking effective partnerships for lasting impact and have women’s empowerment central to all design.

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Flamingo is already carbon neutral but looking to reduce its footprint even further. Moving from air freight to sea freight steadily over the next few years is a much more sustainable way to do so rather than offsetting.

Closing remarks Raania Rizvi, Senior Responsible Officer, BP4GG, FCDO

Thank you for participating and your continued engagement with the Responsible Business Agenda. I have found the discussions fascinating.

As the UK prepares to host COP26 the examples of modalities and lessons from sessions today are even more relevant It was particularly interesting to hear about how Co-op are already considering the repositioning of communities. Any repositioning of communities will cause power changes and often changes in gender relations. This may be a way to address challenges of decent work.

It was inspiring to hear from Mondeléz on how from the start of the project, impact on communities was considered not just impact on workers and this has resulted in successful multiplier effects and local capacity building. It is a good reminder that we need to be people-centred in our approaches.

BFP reflected on how successful partnership examples have been difficult to identify over the years and BP4GG made excellent points on how to partner with others in terms of finding partners whose aim is to also make a positive impact.

On both these point VSCF can now provide an excellent base of evidence and meaningful platforms to build on.

FCDO and businesses need to keep innovating and collaborating to work towards reducing global emissions We need to keep aiming towards achieving climate smart resilience and adaptivity across global supply chains and wider market processes.

Of interest to this community here today is two upcoming BP4GG events in November, which will focus on unlocking opportunities for the growth of the flowers sector through sea freight. Please look out for our Save the Date.

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Three lessons from the VSCF on building back better and greener Mehnaz Bhaur, Project Principal, BP4GG, Mott Macdonald The financing gap to deliver the Global Goals was around US$3 trillion before COVID-19. Public funds alone cannot fill this gap. Private sector action is required. Covid lockdowns last year came as not only a health shock but also a major disruption to global trade and economy. This impacted supply chains adversely.

Agriculture and garments are two supply chains which were hit hardest and also employ large number of vulnerable people including women across Africa and Asia. And these are the two sectors that BP4GG programme is focusing on.

Three key lessons are emerging: 1. Climate change impacts more than climate only It impacts our lives and our livelihoods. The challenge is even more pronounced for the most vulnerable women and men in the supply chains. Not only do they suffer health shocks from the pandemic but also face reduced incomes, job losses, and lower yields, also due to the climate change. For Building Back Better they need additional help and support to also Build Back Greener. This requires adopting integrated approaches and not look at climate change in a silo so that climate is centralised through a climate lens.

2. Thinking long term about people and the planet In the context of a pandemic, time is of the essence and it is critical to deliver support to those who need it most at a time when they need it most. But we should not lose sight of the long term.

As the world recovers from the impact of the pandemic and we strive to consolidate our efforts in building back better, it is critical to think greener. Therefore, the need to not only provide food and health packages but also provide the tools, the skills and the means whereby the beneficiaries can continue to improve their lives, also in the context of climate change. Greener supply chains need thinking green. This needs thinking long term. This needs investing in tomorrow. And for a better tomorrow, we need to consider people and the planet today.

3. Unleashing the Power of Partnerships Resources are scarce in an emergency. And urgent action is critical. Therefore, the modality used for Building Back Better and Greener needs to be one which can deliver more with less. Partnerships are central to Building Back Better and Greener. Our programme believes that the sum of a partnership is greater than its individual parts. When we work together, we deliver faster, wider, and deeper impact which is critical for BBB and Greener. We have learnt today how business partnerships are tackling climate change through several ways: greener trade routes, greening the supply chains, climate smart farming, and empowering women. In the last 14 months, we have benefited almost a million most vulnerable people, more than half of whom are women. This was possible because of our partnerships modality. To sum it up, our business partnerships are acting as a force for good delivering social, economic and environmental outcomes and contributing in a small way to sustainably build back better and greener from this major global crisis.

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Appendix

Resources

Speakers & Participants

Event microsite materials hosted by Business Fights Poverty.

Hosts •

Yvette Torres-Rahman, Co-Founder, Business Fights Poverty

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Katie Hyson, Director, Thought Leadership, Business Fights Poverty

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Karen Smith, Agriculture Portfolio Lead, BP4GG

Materials referenced during the event: •

COVID-19: ETI key partner in new FCDO fund to keep vulnerable workers safe and keep supply chains moving

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COVID-19: How Fairtrade and partners are helping flower workers flourish

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CARE and GSK: Training frontline health workers

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No silver bullets: Closing the $10 billion income gap in cocoa calls for cross-sector action

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Building Resilience in Kenyan Flower Supply Chains

Opening and closing remarks •

Ian Felton, Team Lead, Responsible Business and Business Engagement, FCDO

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Raania Rizvi, Senior Responsible Officer, BP4GG, FCDO

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Mehnaz Bhaur, Project Principal, BP4GG, Mott MacDonald

Fireside chat panelists •

Ian Michell, Group Technical and Procurement Director, Flamingo

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David Alder, Technical Director, MWW Ltd

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Barry Clavin, Ethics and Sustainability, The Co-op

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Masarrat Quader, Public Affairs and Stakeholder Engagement Manager, H&M Bangladesh

Webinar panelists •

Cathy Pieters, Senior Director of Sustainable Ingredients and Cocoa Life, Mondeléz

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Richard Fox, Sustainability Director at Flamingo Horticulture Limited

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Jephthah Mensah, Operations Lead, Cocoa Life Ghana, Mondeléz

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Isaya Muiru, Technical Manager/Senior Trainer, FlowerWatch

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VSCF Vision “To enable vulnerable people and supply chains to recover from and remain resilient to the economic and social impacts of COVID-19, by leveraging the reach and influence of responsible businesses through partnerships.”

VSCF Mission “To enable recovery and resilience from the COVID-19 pandemic by forming strategic partnerships with global businesses. Working within supply chains in Africa and Asia, we will test and scale approaches to provide additional health and safety support, increase incomes, safeguard jobs, and ensure continuing access to markets.

We will support vulnerable people within supply chains to recover from COVID-19, and support responsible businesses to build on these experiences to become more sustainable.”

Business Partnerships for Global Goals is a UKAid funded programme implemented by Mott MacDonald, with support from Accenture Development Partnerships and IIED. We partner with UK and international retail brands, not-for-profit organisations, farms, and factories to provide economic, social, and health benefits to around 1 million vulnerable women and men impacted

by COVID-19 in Africa and Asia.

Mott MacDonald Limited.

Registered in England and Wales no. 1243967.

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