Annual Report 2011
Contents Foreword from Andre de Freitas
Welcome from Sasha Courville
Who we are / Vision and Mission
The ISEAL 100
Improving the Assurance Process
Growing our Organisation
Andre de Freitas, Board Chair
2011 was an important year for ISEAL as we embarked on our tenth year of efforts to improve the effectiveness and credibility of sustainability standards. I was honoured to serve as Board Chair in 2011 for an organisation that maintains such a unique position of expertise and credibility within the diverse and complex landscape that sustainability standards operate in. With almost a decade behind us of substantial learning and collaborative projects, we realised that there is still much more to be done. The year brought important successes such as the launch of our Scaling Up Strategy, providing a clearly defined path for ISEAL members to increase our social, environmental and economic impacts. The strategy gives us four goals for working together: 1. position our organisations as the leaders we are 2. develop strong external partnerships
3. focus on increasing access to certification 4. strive to become even more effective and efficient Since the launch of the Scaling Up Strategy, a number of activities have evolved within the ISEAL community to meet these four goals, including a project to increase the use of sustainability standards in emerging economies and among public procurement officials, and a project to reduce barriers to certification for small producers. The year also brought challenges such as continued scrutiny of whether sustainability standards are delivering positive social and environmental impacts. In response, and building on the development of the ISEAL Impacts Code, several of our members joined ISEAL in a groundbreaking project to begin to understand and communicate the impacts of our programmes, and to use that knowledge to improve our impacts over time. Supported by the
Ford Foundation, the Demonstrating Impacts project upholds ISEALâ€™s goal to promote shared learning as a way to increase the impacts and credibility of sustainability standards. Finally, I must announce that 2011 marked the final year of my three year term as Board Chair. As I look back on these years serving as Chair, I am very proud of the accomplishments we have made as an alliance: from defining our common interests so that we may find innovative solutions to our challenges, to defining good practices that help guide emerging standards. Working together, our alliance has become a stronger one. Together, we are bringing about significant and positive changes in the sectors we work in.
Andre de Freitas, Board Chair
Rik Kutsch Lojenga, Executive Director of the Union for Ethical BioTrade (UEBT) became the new ISEAL Board Chair in December 2011. Rik has been leading the work of UEBT since its launch in 2007, promoting private sector engagement in the ethical sourcing of biodiversity. Previously, Rik worked on ethical sourcing for over a decade with the United Nations Conference on Trade and Development (UNCTAD). â€œI am privileged to serve as the Board Chair of the ISEAL Alliance. ISEAL finds itself in a rapidly changing standards landscape. Its work on issues such as scaling up, demonstrating impact and growing in emerging markets is of great importance. I look forward to collaborating with ISEAL staff, Board and Stakeholder Council on these topics over the next few years."
Sasha Courville, Executive Director
Sustainability standards now cover more than 10% of global production in key commodities and sectors such as wild-capture fisheries, tea, coffee, and bananas. With an increasingly visible presence in global markets, the demonstration effect of pioneering ISEAL members such as the Marine Stewardship Council, Fairtrade International, UTZ Certified, and the Rainforest Alliance / Sustainable Agriculture Network provides solid ground to expand the application of sustainability standards into new commodities and sectors, such as soy, palm oil, sugarcane, cattle, tourism, mining and electronic waste, among others. Business champions are increasingly recognising the value that these tools can play in supply chain management and in ensuring longterm access to supply and are making major commitments that will affect entire sectors and value chains. To this end, ISEAL and its members launched our Scaling Up Strategy in 2011 to identify how ISEAL members can dramatically increase
their social, environmental and economic impacts. Sustainability standards are at a critical point of inflection where they have the potential to make a significant contribution to transforming global markets. Whether they will reach their full potential in fostering labour and human rights and ecological sustainability will depend in part on how future market leaders engage with them and use them to accomplish their own sustainable development objectives. As power drivers behind global markets start to shift, demonstrating value and building support among emerging economy leaders will also be a critical requirement for sustainability standards. Seeing this challenge and opportunity, ISEAL worked throughout 2011 to secure the commitment and support of the Swiss State Secretariat of Economic Affairs (SECO) to work together over the next three years to expand the understanding, use of, and participation in sustainability standards in emerging economies such as Brazil, India and China.
This groundbreaking project will also strengthen the use of sustainability standards in sustainable public procurement, paving the way for broader government engagement At the time of writing this Annual Report, I will be in the final months of seven exhilarating years of leading the ISEAL Alliance. My decision to remain closer to my home in Australia and spend more time with my growing family was made easier knowing that ISEAL has very talented staff in place and a bright future. The organisation also has a stable financial foundation and ground-breaking projects such as the one with SECO that will expand the acceptance of sustainability standards on a global level. ISEAL is well positioned to shape the future of the sustainability standards movement and I look forward to cheering them on in the years ahead.
Dr. Sasha Courville, Executive Director
Who we are ISEAL is the global association for sustainability standards. ISEAL members are leaders in their field, committed to creating effective and credible standards.
Sustainability standards define good social and environmental practices
What we do We develop guidance and facilitate coordinated efforts to improve our members’ effectiveness and scale up their social and environmental impacts.
ISEAL’s Vision A world where social justice and environmental sustainability are the normal conditions of business
ISEAL’s Mission ISEAL’s mission is to define good practices for sustainability standards, to distinguish and promote credible standards, and to ensure that people understand the difference.
ISEAL Board of Directors David Agnew, Marine Stewardship Council David Crucefix, International Organic Accreditation Services Andre de Freitas* (Chair), Forest Stewardship Council Simon Hunt, Fairtrade International Rik Kutsch Lojenga*, Union for Ethical BioTrade Alice Tepper Marlin, Social Accountability International Mauricio Voivodic, Rainforest Alliance / Sustainable Agriculture Network Britta Wyss Bisang, Utz Certified Rochelle Zaid* (ViceChair), Social Accountability Accreditation Services
ISEAL Stakeholder Council Jan Bernhard, Pronatur Rob Cameron, Fairtrade International Daniela Mariuzzo, Rabobank Brazil
Chris Ninnes, Marine Stewardship Council
Mireille Perrin Decorzent, WWF International
Alice Tepper Marlin, Social Accountability International
Carsten Schmitz-Hoffmann, Deutsche Gesellschaft f端r Internationale Zusammenarbeit (GIZ) GmbH Alice Tepper-Marlin*, Social Accountability International Jan Kees Vis, Unilever Tensie Whelan, Rainforest Alliance * Designated Board Liaison
* Member of the Executive Committee
NOTE: These are the representatives as of 31 December 2011.
A special thanks to the ISEAL Board members whose service ended during 2011:
Scaling Up With 10% or more of global production certified in forestry, fisheries and certain agricultural commodities, sustainability standards have the potential to transform global markets. In order to achieve this, standards systems must scale up with unprecedented speed and efficiency.
The Scaling Up Strategy
Over the past two decades, ISEAL members have established market approaches to address some of the worldâ€™s most pressing problems. They have had a major impact on the ground while creating growing demand for sustainable products. The private sector and governments have become increasingly interested in the potential that sustainability standards have to transform global markets. But in order to achieve this transformation, our members must scale up quickly. In June 2011 ISEAL launched the Scaling Up Strategy, providing a path for our members to dramatically increase their social, environmental and economic impacts.
The strategy identifies four ways that standards systems can have a greater impact by working together, and how they can continue to play a vital role in bringing about sustainable development solutions: Positioning credible standards systems as leaders in achieving sustainable development Leveraging the support of key external actors for scaling up Increasing producer and enterprise access to standards Increasing the effectiveness and efficiency of standards systems
ISEALâ€™s new activities that support the Strategy: work to increase the use of sustainability standards in emerging economies a project to build awareness of sustainability standards among public procurement officials collaborative learning projects aimed at reducing barriers to certification projects aimed at demonstrating and improving the impacts of sustainability standards
Scaling Up the Impacts of Standards Systems ISEAL’s 2011 Conference “Scaling Up the Impacts of Standards Systems” was the theme of this year’s conference as ISEAL launched the Scaling Up Strategy, a programme of action for ISEAL members to increase their social and environmental impacts and transform global markets. More than 150 people convened in Zurich for the Public Day, which saw a marked increase in the business presence and diverse representation from emerging economies. The conference deepened the sense of community among ISEAL
supporters and confirmed the importance of gathering together standards experts and users. Session topics included approaches for measuring impacts, opportunities for addressing climate and water and the need for clarity in claims. An illuminating opening panel confirmed the critical importance of emerging economies for the growth of the standards movement.
“ The Scaling Up Strategy allowed us to think
more deeply in terms of cooperation, which we made public together with Rainforest Alliance and UTZ Certified. ” Fairtrade International
The ISEAL 100
In 2011 we published the ISEAL 100 survey to take the pulse of users of sustainability standards in business, government and civil society. The findings showed that sustainability standards are increasingly a widely used tool to reach social and environmental objectives. On average, respondents use four different sustainability standards. Two thirds use Fairtrade, FSC, MSC, Rainforest Alliance, organic or a combination of the five. More than 70% would consider using more standards to achieve their sustainability goals.
Four out of five respondents mentioned the value of using sustainability standards to increase efficiency. Others valued marketing opportunities and the ability to improve sustainability performance. To increase trust in standards systems and promote their use, respondents cited value in credible verification, multi-stakeholder systems and good governance. Frustrations cited included cost, complexity and overlap in the standards landscape. Many spoke of the need to encourage harmonisation and order among existing sustainability standards. Nonetheless, half of those surveyed spoke out against a “catch-all ecolabel.”
“We analyse different factors like
ISEAL membership, the reputation of
the standards with opinion makers and our own assessment of the standard.” Unilever
At ISEAL we aim to increase the impacts of sustainability standards by improving their effectiveness and creating the conditions for their increased uptake. A major part of this is to help people understand what good practice looks like for different aspects of a standard. ISEAL is soon to launch a global conversation to produce a broadly agreed set of Credibility Principles that represent the core values and characteristics of effective sustainability standards. We intend for these Principles to become the international reference for credible standards and certification and the foundation that underpins more technical guidance tools. During 2011 we began to stimulate conversation about the draft Credibility Principles to prepare for a consultation process that will take place throughout 2012.
Draft Credibility Principles Clear Objectives and Scope Transparency Multi-stakeholder Relevant, Measurable, Objective Criteria Local Applicability and Global Consistency Impartiality and Independence of Assurance
Consistency of Assurance Results Traceability Accurate Claims Complaints and Appeals Mechanisms Learning and Continual Improvement Inter-operability
â€œ Standards create trust between us and our stakeholders and consumers. â€? Carrefour
Improving the Assurance Process
The ISEAL Codes of Good Practice are our most broadly recognised tools, providing guidance on how standards systems can effectively and credibly deliver on their social and environmental impacts. These Codes are applied by leading standards systems and compliance is an ISEAL membership requirement. In 2011 ISEAL began to develop a Code of Good Practice for Assuring Compliance with Social and Environmental Standards (the Assurance Code) due to the clear signals we received over the years from ISEAL members that delivering high quality assurance in an effective, efficient and sustainable manner is not only critical, but also challenging.
Major challenges cited included auditor competence, affordability, transparency and accessibility. The Assurance Code was drafted and underwent its first public consultation in 2011. More than 800 comments were received during the first two-month consultation period, reflecting the strong, highly constructive input from ISEAL’s stakeholders.
ISEAL’s Codes of Good Practice Standard-Setting Code (2004) Impacts Code (2010) Assurance Code (Expected 2012)
The Assurance Code will apply to scheme owners and the certification and accreditation bodies that assess compliance within those schemes. The final Code will be completed in 2012.
“The Assurance Code will improve the quality and
consistency of the assurance process and will support the appropriate use of assurance tools that are rigorous, accessible and scalable.” Patrick Mallet, ISEAL’s Credibility Director
Sustainability standards address significant challenges in the world today, but there remains a critical need to understand the social and environmental impacts they deliver. Our members have committed to the task and actively contributed to the development of the ISEAL Impacts Code that requires standards to evaluate their progress regularly and use the learning to improve their programmes.
be used to inform the design of common indicators that could be pilot tested in the future. As members work on developing their theories of change, this feeds into choices of which unit of analysis to focus on (household, worker, enterprise) and which common “pathways to impact” (yield improvements, increase in net crop income, increase in household income, etc) should be tracked through the common indicators.
Through support from the Ford Foundation secured in 2011, we began to work to further understand the contribution that certification has made towards alleviating poverty. Nine ISEAL members came together with external experts to discuss common poverty indicators and obtain expert input into how poverty can be defined and measured. The highly interactive meeting made clear that members’ “theories of change” and the research agenda related to poverty reduction impacts should
ISEAL also provided support for M&E system development for our members, including creating a list serve for member M&E staff and a regular monthly newsletter to share resources, tips and information. ISEAL assisted members on basic research design and research methodology issues, as well as on theories of change and offered a webinar by Rainforest Alliance about incorporating theory of change into organisational planning.
The Ford-funded project supports ISEAL’s goal to promote a culture of learning and improvement among our members and ensure that standards continue to play a significant role in moving industry towards sustainability.
87% of our members agree that participating in ISEAL helps them improve their social and environmental impacts.
Some thoughts from members participating in the Demonstrating Impacts project... “ This project is the most valuable contribution ISEAL has made to our organisation in the last year. ” “ We need to create more efficient and results-oriented standards with fewer words and document requirements, but more impact on the ground. ” “ While [the development of an M&E system] is new to us, we enjoyed listening to others’ experience to better understand the important elements of an M&E system. ”
Monitoring the Landscape ISEAL provides ongoing policy monitoring and trends analyses to drive collective strategies for promoting uptake of credible standards by leaders in government and business. In 2011 ISEAL closely monitored and served as a point-of-contact for members on such topics as: The renewed potential for trade conflict in the World Trade Organisation around the legality of sustainability standards under international trade law arising out of the Tuna-Dolphin dispute Discussion fora and collaboration tools such as the Trade Standards Practioners Network and the Trade for Sustainable Development Database Initiatives that present unique opportunities and implications, such as the Global Social Compliance Programme and the Green Products Roundtable
Achievements witnessed in 2011 resulting from our collective policy efforts included explicit recognition in the International Finance Corporation’s new “Performance Standard on Environmental and Social Issues” that encourages the use of credible standards and identifies ISEAL Code compliance as a mark of credibility.
Facilitating Collaboration & Advocacy ISEAL holds a distinctive role to coordinate collective responses from ISEAL members that advocate the interests of credible standards. In 2011 this was best demonstrated by ISEAL’s submission to the European Commission on the review of its public procurement rules as part of the Europe 2020 Strategy. Through the support of members, ISEAL’s submission articulated the role that international standards can play in helping governments to advance the sustainability agenda by making it easier to procure sustainable products and services.
81% of our members and 95% of our affiliates see ISEAL as a key player in shaping the sustainability landscape according to our 2011 survey.
We will be taking this stream of work forward in 2012 through a SECO-supported project on sustainable public procurement. Another policy development that attracted the interest of ISEAL members was an initiative to produce a European standard for “Traceable and Sustainable Cocoa.” Together with our cocoa-certifying members, ISEAL submitted a position paper voicing concerns about the risks that a European standard could carry for best practice in cocoa supply chains. ISEAL will ensure that our collective viewpoint is communicated as the initiative carries forward into 2012.
Supporting Efforts in Climate Change For ISEAL members, climate change continued as a strategic priority in 2011. ISEAL assisted members to identify appropriate tools for greenhouse gas accounting and conducted a study examining the entry points through which standards can help producers become more resilient. As part of our climate change agenda, ISEAL also continued our work on supporting biofuels standards systems to collaborate and engage in policy issues such as the European Renewable Energy Directive.
“ ISEAL initiated serious discussions on specific
topics such as GHG accounting, food security,
and indirect impacts. We valued their flexibility and understanding of each standard systems’ situation ”
Roundtable on Sustainable Biofuels
Growing our Organisation
2011 saw ISEAL continuing to strengthen our organisation. We filled new staff positions in monitoring & evaluation and communications, and created a position focused on community support for our members. We developed a set of human resources policies, strengthened our internal communications and drafted ISEALâ€™s internal values to stimulate a positive organisational culture. We also began the first phase to redevelop our web site and improve the ISEAL online community. We continued to upgrade our information technology resources throughout the year and to strengthen our internal M&E systems. We merged the communications and fundraising functions, built our M&E work into our projects and created more balance among staff levels to streamline costs and allow more funds to flow towards our programmes.
ISEALâ€™s Changing Look As the ISEAL Alliance continues to reach out and engage with new audiences, it is important that the way we communicate is professional, consistent and representative of the work of our members. This includes developing a recognisable visual identity to be used across our various communications channels, both on and offline, that stays fresh and grows with the organisation. Following a collaborative process between our staff and Board, we worked with an external design agency to re-brand the ISEAL Alliance; unveiling our new look in March 2011. As well as a new logo, we now have a new colour palette and a recognisable symbol (featured at the bottom of this page). We have also worked with our members to develop a library of high quality photos; some of which are featured in this report!
Financial Summary As of 31 December 2011 - unaudited with comparative audited totals for financial year 2010
Income (in Euros)
Reserves at Start of Year
Reserves at End of Year
Organisation ›› Monitoring & Evaluation, Information Technology ›› Communications ›› Fundraising ›› Finance, Operations and Governance
9% Membership 58% Government* 33% Foundation
Collaborative Learning 15%
Policy Scaling Up
Finance, Operations and Governance
* The Government category includes income from the Humanist Institute for Development Cooperation (Hivos), the Hivos - Oxfam Novib Biodiversity Fund, and the Interchurch Organisation for Development Cooperation (ICCO). These are non-government organisations in the Netherlands that receive core funding mainly from the Dutch government (Hivos and Oxfam Novib), and the European Commission and Dutch Foreign Office (ICCO).
Fundraising Communications M&E, IT
Funders We are extremely grateful to our donors, partners and other supporters, whose funding, ideas and encouragement is crucial to everything that we do. For the 2011 financial year we received generous support from the following institutions: Deutsche Gesellschaft fĂźr Internationale Zusammenarbeit (GIZ) GmbH Ford Foundation Humanist Institute for Development Cooperation (Hivos) Interchurch Organisation for Development Cooperation (ICCO)
ISEALâ€™s Finance Committee Jeremy Anglin, Marine Stewardship Council Richard Cook, Social Accountability International Simon Hunt (Chair), Fairtrade International
The Overbrook Foundation The David and Lucile Packard Foundation State Secretariat for Economic Affairs, Switzerland (SECO) The Walton Family Foundation
Full Members Accreditation Services International Accreditation Services International is one of the world’s leading accreditation bodies for sustainability standards systems and the sole accreditation body for the Forest Stewardship Council, the Marine Stewardship Council and the Aquaculture Stewardship Council.
Fairtrade International Fairtrade International represents 25 organisations working to secure a better deal for producers. From their headquarters in Bonn, Germany, they set international Fairtrade standards and support Fairtrade producers.
Forest Stewardship Council Forest Stewardship Council is an independent non-government, not-for-profit organisation established to promote the responsible management of the world’s forests.
International Organic Accreditation Service The International Organic Accreditation Service is an independent, non-profit organisation that works on behalf of everybody involved in organic agriculture to ensure trust and fair trade in products labelled as organic.
Marine Stewardship Council The Marine Stewardship Council’s mission is to use their ecolabel and fishery certification programme to contribute to the health of the world’s oceans by recognising and rewarding sustainable fishing practices, influencing the choices people make when buying seafood, and working with partners to transform the seafood market to a sustainable basis.
ISEAL Members Rainforest Alliance / Sustainable Agriculture Network The Rainforest Alliance works to conserve biodiversity and ensure sustainable livelihoods by transforming land-use practices, business practices and consumer behaviour. The Sustainable Agriculture Network promotes efficient and productive agriculture, biodiversity conservation and sustainable community development by creating social and environmental standards.
Roundtable on Sustainable Biofuels The Roundtable on Sustainable Biofuels provides and promotes the global standard and certification scheme for socially, environmentally and economically sustainable production of biomass and biofuels. ACCR
Social Accountability International Social Accountability International is a non-governmental, multi-stakeholder organisation whose mission is to advance the human rights of workers around the world. It partners to eliminate sweatshops by promoting ethical working conditions, labour rights, corporate social responsibility and social dialogue.
Social Accountability Accreditation Services Social Accountability Accreditation Services is an accreditation agency founded to accredit and monitor organisations as certifiers of compliance with social standards, including the Social Accountability 8000 standard for ethical working conditions.
Union for Ethical BioTrade The Union for Ethical BioTrade is a non-profit association that promotes the â€œSourcing with Respectâ€? of ingredients that come from native biodiversity. Members commit to gradually ensuring that their sourcing practices promote the conservation of biodiversity, respect traditional knowledge and assure the equitable sharing of benefits all along the supply chain.
UTZ CERTIFIED UTZ CERTIFIED is one of the largest sustainability programmes for coffee, cocoa and tea in the world. They implement a worldwide program for socially and environmentally responsible agricultural production and sourcing. They want to make sustainable commodities available to the majority of consumers by working together with manufacturers and retailers.
4C Association The 4C Association is the platform that brings together stakeholders in the coffee sector to address sustainability issues in a pre-competitive manner. The 4C Association works to achieve 100% coffee sector compliance with at least baseline sustainability standards.
NOTE: These are the ISEAL full members as of 31 December 2011.
ISEAL Members Associate Members Alliance for Water Stewardship Alliance for Water Stewardship is leading the Global Water Roundtable: a multi-year, multi-stakeholder standard development process that will result in an International Water Stewardship Standard. Their aim is to directly provide, or facilitate access to, the range of services that water users need to achieve their facility and watershed level targets.
Bonsucro Bonsucro aims to improve the social, environmental, and economic sustainability of sugarcane by promoting the use of a global metric standard, with the aim of continuously improving sugarcane production and downstream processing in order to contribute to a more sustainable future.
Goodweave GoodWeave is helping to combat child labour and transform the rug industry by certifying child-labour-free rugs and by providing education and opportunities to rescued and at-risk children. The GoodWeave certification is implemented by GoodWeave International.
Responsible Jewellery Council The Responsible Jewellery Council is an international, not-for-profit organisation established to reinforce consumer confidence in the jewellery industry by advancing responsible business practices throughout the diamond, gold and platinum group metals jewellery supply chain.
WWF Aquaculture Dialogues WWF has initiated eight roundtables, called Aquaculture Dialogues, to create standards that will minimise the key negative environmental and social impacts for certain farmed species.
NOTE: These are the ISEAL associate members as of 31 December 2011.
ISEALâ€™s Membership Committee Oliver Bach, Rainforest Alliance / Sustainable Agriculture Network Lisa Bernstein, Social Accountability Accreditation Services Ali Kriscenski, Forest Stewardship Council Rochelle Zaid*, Social Accountability Accreditation Services * Designated Board Liaison
ISEAL Staff Our team Sasha Courville
Marta Maireles González
Human Resources & Operations Manager
Monitoring & Evaluation Coordinator
Code Development Manager
Senior Monitoring & Evaluation Manager
Community Support Coordinator
Director of Development & Communications
Scaling Up Director
Patrick Mallet Norma Tregurtha Senior Policy Manager
Philip Wilson Finance & Operations Director
NOTE: Staff list as of 31 December 2011
Photography We would like to thank all members that provided photography for this report. Inside cover and pages 18 and 28 © Scott Welker | GoodWeave USA. Pages 3 and 16 © Eugenio Fernández Vázquez | Rainforest Alliance. Pages 5 © Marine Stewardship Council. Page 6 © Getty Images. Page 9 © Randy Larcombe | Marine Stewardship Council. Pages 10, 13, 30 and 38-39 © Didier Gentilhomme | Fairtrade International. Pages 12 and 22-23 © Caroline Irby | Rainforest Alliance. Pages 14 and 34 © Eduardo Martino | Fairtrade International. Page 15 © Jennifer Bass | Rainforest Alliance. Page 20 © Linus Hallgren | Fairtrade Sweden. Page 24 © Marie-Amélie Ormières | Fairtrade International . Pages 26-27 © Matt Rudolf | Roundtable on Sustainable Biofuels. Pages 32-33 and 36-37 © David Dudenhoefer | Rainforest Alliance.
Our Cover Miners at the entrance of a Fairtrade and Fairmined certified gold mine at Cuatro Horas in the Chaparra district, province of Caraveli, department of Arequipa (Peru). Photo ÂŠ Eduardo Martino | Fairtrade International. Editor: Lara Koritzke. Contributor: Jason LaChappelle Designer: Michelle Doust
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ISEAL Alliance, the global association for the world’s leading sustainability standards, has issued its 2011 annual report highlighting the...
Published on May 17, 2012
ISEAL Alliance, the global association for the world’s leading sustainability standards, has issued its 2011 annual report highlighting the...