Beyond 2020 RTRS Strategy 2021-2026 Key strategic highlights

Beyond 2020 RTRS Strategy 2021-2026 Key strategic highlights

VERSION FOR SOY SECTOR STAKEHOLDERS.

B eyo n d 2 020

» 1

B eyo n d 2 020

» 2

The “Beyond 2020” RTRS Strategy | 2021-2026 envisioned and led by the RTRS Executive Board since 2019 is the roadmap that will guide and focus the Association´s work and efforts over the next six years.

For decades, and globally, many diverse stakeholders in different commodity value chains have been striving to find the best approach to deliver sustainable (economically viable, socially beneficial, and environmentally appropriate) supply chains, though the results have fallen short of expectations.

Beyond 2020, we are all as a sector at the tipping point of shared responsibility. Acknowledging and assuming strong commitment for its roles, both as a multistakeholder round table and as an owner of certification schemes, RTRS decided to focus on the development of the “Beyond 2020” RTRS Strategy. All organizations coexisting in this soy ecosystem have a valuable role to play, and we are ready to play ours.

Several trends and drivers were the inputs for the development of the “Beyond 2020” RTRS Strategy: the global agenda of climate change, biodiversity, including key topics as deforestation and human rights; the political sustainability regional agenda (in Asia-China, in Europe, in Latin America-Brazil) looking to standardize the definition of sustainability

and to foster the demand for sustainable traceable deforestation-free commodities; the responsibility and commitment of the production and industry sector to source, trade and manufacture sustainably; the role and weight of NGOs and the financial sector as facilitators and enablers of the delivery of sustainable value chains; and last but not least our own valuable learnings and future ambitions.

In this context of trends and drivers, RTRS has a specific and valuable overarching role as a global multistakeholder round table and owner of a tangible solution, such as its robust and credible certification schemes that guarantee sustainable, transparent, and traceable sourcing.

Big goals require big efforts and commitments; the “Beyond 2020” RTRS Strategy is a living, representative and viable roadmap for the entire RTRS stakeholder community, both members and non-members. To make it sustainable, we invite the RTRS community to take ownership of the strategy and participate actively to strengthen it as well as its pillars and objectives, to multiply its impact.

This new six-year roadmap is ready for implementation; let´s get started, all together.

RTRS Executive Board June 2021

B eyo n d 2 020

» 3

THE ROAD TO “BEYOND 2020” RTRS STRATEGY In developing RTRS’ first ever strategy, four distinct elements were considered: 1 RTRS’ present situation 2 Drivers of tomorrow in and beyond the soy industry 3 Possible future developments Kick-off

4 Challenges and critical success factors

high

Phase 1

All these factors were assessed and consolidated in three phases (see below) and in very close collaboration with the members of RTRS Board and Secretariat using the Malik Diretissima® Strategy approach. This

Phase 2 Variety of variants, ideas, options, challenges

Strategic Diagnosis Exploiting Syntegration Results 2016 Situational Assessment Data Collection

approach uses an in-out-in logic, whereby an organization’s essential

Foundations of future existence

Foundations of present existence

variables (those that need to be kept under control for the organization to be sustainably viable and successful in the long term) are assessed together with all relevant actors. These variables, in turn, will then define the information needed from within and outside the organization to

Degree of concretization of variants, ideas, options, challenges

in-depth exchange between RTRS and Malik.

B eyo n d 2 020

Conclusions from System Discovery Developing Options: - Collecting - Designing - Prioritization of strategic options - Refining the Ecosystem Modelling from Phase 1

4 3 2

1 low

Guidelines

low

Strategic Formulation What?

Why? Who?

Organization Resources Measures

Lead time high

5

Methods & Tools: Systema Discovery S-Curves Analysis Ecosystem Modelling

decide on the way forward. Thus, as reflected in the Executive Summary, a collaborative core strategy was developed through the interplay and

Phase 3 Strategic Options

Where do we stand and what challenges do we face?

What do we have to do?

How will we do it?

How much room for maneuver do we have?

time

» 4

Following this, the core strategy was then worked into a detailed plan with all the relevant data needed for decision-making and implementation, using resources from both the RTRS Secretariat and Malik. It was also checked against possible new developments resulting from COVID-19.

About Malik Malik is a leading company for holistic general management, leadership and governance solutions. Internationally renowned corporations and institutions have had their management systems tailored by Malik – to ensure the optimal functioning of their organizations. With centers in St. Gallen, Zurich, Vienna, Berlin, London, Beijing and Toronto, Malik is the biggest organization in the field of general management.

Prof. Dr. Fredmund Malik is founder, owner and chairman of Malik. The habilitated entrepreneurial professor and bestseller author of more than ten books has been setting the standards for professional management with his company for many years. His cybernetic based Malik Holistic Management Systems® are the worldwide most sophisticated instruments for the reliable functioning of organizations.

B eyo n d 2 020

» 5

STRATEGY ARCHITECTURE

Vision

RTRS Mission

Mission

Promote the growth on production, trade, and use of responsible

Values

soy through cooperation with actors in and relevant to the soy value chain from production to consumption in an open dialogue Branding RTRS

with stakeholders including producers, suppliers, manufacturers, retailers, financial institutions, civil society organizations and other

Sub-Branding Round Table

Sub-Branding New opportunities

RTRS Association Strategy Sub-Branding Certifications

relevant actors.

Round Table

New opportunities

Strong Membership Base Governance Structure General Assembly Executive Board Secretariat

B eyo n d 2 020

Certifications Strategies for the Business Units Membership Strategy

Concept

» 6

MANAGEMENT SUMMARY To manage RTRS scope and organizational structure complexity, a segmentation is necessary. Segmentation is proposed by operational units, geographical scope and areas of expertise (new projects and initiatives).

3 New Opportunities OU: It gives RTRS a platform to create, set up and launch new services and/or business ideas. It is the “test-bench” that prepares the Association to be flexible in a changing environment.

Successful new activities might become later new operational units.

On a first segmentation level, RTRS will create Operational Units (OU), as follows.

4 Secretariat OU: The RTRS Secretariat is the operational backbone of the Association. Professionalizing and extending its services and support functions will strengthen the organization and create the conditions to achieve the objectives of “Beyond 2020” RTRS Strategy.

1 Round Table OU: Covers all strategies and activities around “RTRS as a global, multistakeholder, consensus-based decision-making round table”. It includes: publishing information, lobbying and influencing, providing knowledge about the “soy world”, organizing field trips, organizing and hosting conferences, bringing people together etc. As per RTRS’ mission, Membership strategy is part of the Round Table OU. 2 Certification OU: The focus is on certification of soy products and “soy related oils, seeds and grains” (considering crop rotation). Within this OU, appropriate procedures and practices are developed to allow organizations in the soy value chain to participate in a trustworthy chain of custody from “farm to fork”. This means the Association will promote RTRS certification (Production and Chain of Custody) as a robust and holistic1 solution that can also contribute to deforestation-free supply chains. To support and accompany this purpose, RTRS develops and runs appropriate IT platforms.

On the second segmentation level, RTRS ideas and actions are driven by regions (area within a country or geographical area, e.g., Europe, Latin America), countries and/or political/organizational regions (e.g., Brazil, India, China and/or European Union).

If necessary RTRS will set up projects; projects are the third segmentation level in the organization, and are assigned to a specific segment or across various segments.

Operational units ensure RTRS viability. So, strategies, strategic initiatives, action plans and strategic investments are assigned to these Operational Units.

1. We mean holistic: Economically viable, socially beneficial, and environmentally appropriate.

B eyo n d 2 020

» 7

RTRS Strategy 2021 - 2026

The document provide an overview of the major strategic priorities for the 2021-2026 strategic period:

5 Enlarging the existing certification system of RTRS Credits Supporting Responsible Soy-Physical Flow by generating an environmental footprint to contribute to the accomplishment of the United Nations Sustainable

1 Strengthening the overarching role of RTRS as a global,

Development Goals (UN SDGs). This will leverage the added value of

multistakeholder, consensus-based decision-making round table. The

RTRS` certified material - and the certification process - for all parties in

round table capabilities of RTRS are revalued and repositioned.

the value chain.

2 Strengthening the membership base with new members and a more

6 Professionalizing and extending the services and support functions

balanced representation of all constituencies. RTRS will renew the

of RTRS Secretariat. RTRS needs a strong “organizational backbone”

membership value proposition.

(staff, processes, and digitalization) to achieve its ambitious “Beyond 2020” RTRS Strategy.

3 Expanding RTRS soy certification to other related oils, seeds and grains (e.g., corn). Integrating the crop mix into RTRS portfolio by

The following chapers in this strategy paper include a detailed description

transferring the existing RTRS knowhow. RTRS is positioned as one of

of the strategic priorities: Round Table Activities, RTRS Certification

the key ‘spokesperson’ of sustainable crop production worldwide.

and New Opportunities.

4 Growing in new markets and regions. Priority regions are Asia-Pacific and India in the certification activities supported by selected round table activities. Primary focus is soy. Other crops will follow as soon as a certification methodology is developed.

B eyo n d 2 020

» 8

“BEYOND 2020” RTRS STRATEGY 2021-2026 PERIOD

ROUND TABLE ACTIVITIES

B eyo n d 2 020

» 10

STRENGTHENING THE ROLE OF THE ROUND TABLE When it was conceived in 2004 and founded later in 2006, RTRS was

The RTRS Standard for Responsible Soy Production was an innovative

the first global multistakeholder discussion forum on responsible soy in

solution, very well received by the soy sector and stakeholders. In recent

the soy world.

years, the global sustainability agenda, and especially the hotspot of deforestation, pushed RTRS to adapt its own agenda and resources,

RTRS mission is to promote the production, trade and use of responsible

focus on delivering to the soy sector this robust and holistic tool, that,

soy. The decision was made to carry out this mission by generating and

additionally, since 2016, is zero deforestation, and zero conversion2. As

promoting an open and inclusive dynamic forum for dialogue, agreements,

the Association focused on expanding the certification scheme, RTRS

collaboration, and actions. The players in the soy value chain, including

Certification role became more noticeable.

producers, suppliers, feed and food manufacturers, retailers, financial institutions, civil society organizations are addressed for participation.

In a sector pierced by sustainability ´urgencies´, different initiatives, Round Tables, and certification schemes on soy (about 70) proliferate

RTRS identity is defined by a threefold attribute, on which its 15-year

around the world. This scenario reflects how RTRS’ role as a Round

existence is based: RTRS is (i) multi-sectoral; (ii) global; and (iii) a consensus

Table, a reference for the global soy sector, can be repositioned and

based decision-making Round Table.

strengthened.

A few years after the creation of the Association, in 2010, as one of the approaches to accomplish its mission, RTRS approved a truly sectoral representative and holistic soy voluntary certification scheme: the RTRS Standard for Responsible Soy Production.

2. The RTRS Standard for Responsible Soy Production V3.0 approved by RTRS members during the General Assembly in 2016, guarantees zero deforestation and zero conversion in responsible soy production. It means that no conversion of any natural land, steep slopes and areas designated by law to serve the purpose of native conservation and/or cultural and social protection is allowed.

B eyo n d 2 020

» 11

Strategy The three key attributes of RTRS are a valuable and valid item in the

Re-positioning RTRS multistakeholder Round Table activities

current sustainability agenda, where concepts such as “smart-mix”;

requires a well-thought-out and coordinated sequence of steps,

“whole-of-society approach” and “inclusive” are integrated in the various

that is why RTRS plans to:

approaches intended to achieve truly sustainable supply chains.

RTRS needs to be “positively recharged” to become a reference point in the soy world. Recognizing its double role as a global multistakeholder consensus decision-making round table and owner of a certification scheme, RTRS is willing to work further on a new differentiating RTRS profile strategy.

Overarchingly and by definition, RTRS is the arena where the various players in the soy value chain are connected and brought together.

Thus, this 6-year strategy period is the opportunity to strengthen the perception of RTRS as THE Round Table, THE trustworthy reference in the soy world by 2026.

• Engage for RTRS to be recognized as a valuable partner in the soy sector by politicians, government officials, and international and multilateral organizations.

• Meet to convene and connect stakeholders, strengthening influencing power and networking: e.g., global and national conferences; field trips; business-rounds; webinars; Task Forces.

• Approach jurisdictionally to actively collaborate with local government and supply chain stakeholders, among others.

• Incubate and generate gathering spaces where participants can become “doers”.

• Go to the University to make RTRS known and present it as part of the academic world and students’ scope and discussions.

• Conduct research and establish cross-disciplinary advisory expert and scientific teams.

B eyo n d 2 020

» 12

In order to give visibility to our goal of repositioning RTRS as a global multistakeholder consensus decision-making round table and owner of a certification scheme, RTRS renews visuals including logos to represent RTRS Round Table and RTRS Certification.

B eyo n d 2 020

» 13

STRENGTHENING THE MEMBERSHIP BASE The membership strategy goes hand in hand with the goal of strengthening the role of the Round Table. We believe that RTRS’ threefold attribute as a global, multi-sectoral, consensus based decision-making Round Table plays a role in supporting organizations willing to meet their objectives in terms of global sustainability. In addition, we understand, also, that the impact and strength of this threefold attribute will be greater, the larger the community willing to endorse and legitimate it.

With a strong belief, RTRS faces the challenge to maintain member loyalty and increase its membership base, the representativity of sectors and voices is a key strategic objective within this 6-year strategic period. Producers’ Associations are part of RTRS membership structure under the Producers constituency, representing the “voice” of a large group of individual producers. However, most of RTRS members are companies, which means that 2/3 of our membership comes from the Industry, Trade and Finance (ITF) constituency. While due to RTRS voting procedure the balance of power is not affected, RTRS deems it highly important to increase the number of members from the Producers and Producer Associations, Civil Society and Observers constituencies to keep enriching discussions and debates.

B eyo n d 2 020

» 14

Strategy RTRS aims for a “powerful voice” in the world of “responsible crops”. This implies that a broader and diverse membership base will guarantee a

RTRS plans to:

viable, autonomous, and more representative development of RTRS, as

• Evaluate and analyse a new membership value proposal.

well as the implementation of different communication channels and

• Increase the number of members by 2026 looking for a

procedures to improve the understanding and relationship between

representative membership from all RTRS constituencies (producers’

RTRS members and the soy sector.

associations; multilateral organizations; universities etc.).

• Create a new RTRS Annual Progress Report reporting template and structure and develop a new analysis and consolidation system to turn it into a useful tool for RTRS and RTRS stakeholders.

• Scale up RTRS Secretariat capabilities developing an RTRS Membership Unit to maintain strong relationships with members.

• Develop and institutionalize feedback channels between RTRS members and RTRS Executive Board and Secretariat .

B eyo n d 2 020

» 15

RTRS CERTIFICATION

B eyo n d 2 020

» 16

RTRS STEPPING-UP IN EUROPE Compared with the consumption volume of soybean grains worldwide

• Europe has been for decades the leading market with a concern

(348.7 MMT in 2018 – based on FAOSTAT), the European market is

about sustainability in agricultural products and is the region where the

small. The consumption of soybeans in Europe is 26.9 MMT (7.7% of

discussion about climate change and deforestation takes place.

worldvolume) while in Asia it is 143.2 MMT (= 41.2% of world volume).

• The European Green Deal is the strategy deployed to make Europe climate-neutral by 2050, protect natural habitats and improve the well-

However, several organizations from Europe were the founders of RTRS

being of people.

and promoted its role and value since its origin as a Round Table and

• The European Union-Mercosur Trade Agreement is underway, with a

certification scheme owner. In this sense, Europe has a high strategic

special focus on biodiversity, deforestation and climate change.

value for RTRS.

• Tackling deforestation in supply chains is on the agenda of several initiatives since 2017 but a common solution is still missing.

Between 2017 and 2019, the four largest South American soy exporters (Argentina, Brazil, Paraguay and Uruguay, hereinafter called SA4) lost

RTRS as a valuable global, multistakeholder consensus-based decision-

market share in Europe (from 61% down to 54%). In spite of this drop,

making round table is actively and proactively involved in the discussion

RTRS market share of SA4 certified material exported to Europe grew

processes and platforms of the European Commission. Its certification

from 8.7% to 17.3%.

scheme is a strong and robust tool designed to meet European sustainability objectives, especially deforestation- and conversion-free supply chains.

In line with the above, key qualitative trends and assumptions for the 6-year strategy period plus understanding that RTRS certification schemes

Europe is the trendsetter for “sustainable development”; it is a necessity

(Production and Chain of Custody) can contribute to deforestation-free

for RTRS to be present in the European political agenda to receive early

supply chains, would help consolidate the growing RTRS market share

signals on time.

trend in Europe for this strategic period:

B eyo n d 2 020

» 17

In this scenario and during the strategic period, RTRS also faces several challenges. On the one hand, RTRS must strengthen traceability of its zero deforestation-conversion certification process, and on the other hand, it must deal with an ongoing negative perception regarding the deforestation issue in South America.

Strategy So far, RTRS is a success story. Back to the above mentioned results: since 2017, RTRS has managed to almost double its market share in Europe.

From the total soy imports, certified and non-certified, the uptake of RTRS SA4 certified material grew from 8.7% to 17.3% between 2017 and 2019.

To consolidate this fact and positive trend, for this 6-year period, RTRS plans to: • Pull demand for RTRS certified soy from the European value chain. Differentiate market activities by market and regions, the “Transatlantic” countries and “Danubian” countries3.

• Increase activities at all political levels (EU, national governments, NGOs, etc.).

3. Transatlantics are: Scandinavia (Finland, Sweden, Norway, Denmark); UK & Ireland; Benelux; (Belgium, The Netherlands, Luxembourg); Germany; France; Switzerland; Italy; Spain; Portugal; Greece; Poland; and Romania. Danubians are: the Czech Republic; Slovakia; Austria; Hungary; Slovenia; Croatia; Serbia & Montenegro; Bosnia; Herzegovina; Albania; North Macedonia; Bulgaria and Moldavia.

B eyo n d 2 020

» 18

MARKET IN SOUTH AMERICA SA4 became the number one soy commodities (beans, meal, oil) export

strategy for the South American market is analysed and thought from

region in the world. By 2019, the largest importers of SA4 soy commodities

two different perspectives: production (supply) side and consumption

are China (48%), Europe (15%) and South East Asia (13%). With regards

(demand) side.

to sustainably produced soybeans, SA4 is one of the most significant supplying regions to European countries as per the Soy Monitor 2018 Report, of the 36.9 million tons imported annualy from Europe, 22 million come from South America.

Another fact to highlight is that between 2012 and 2019, soy production in South America grew at an average of 4.25% p.a. (CAGR). And over the same period, RTRS increased its market share of certified material on the total SA4 production from 0.32% (2011) to 2.06% (2019)4. These performance indicators within the current global sustainable supply - demand scenario and trend reflect that RTRS certification schemes (Production and Chain of Custody) have a role and can contribute to a holistic sustainable deforestation-free supply chain.

Additionally, besides the role of strategic foreign markets for SA4, South American countries, especially Brazil and several from Central America, also play a role in the demand for RTRS certified material. Thus, the 4. This is 420k to 3.9 million tons of RTRS certified material on the total SA4 production.

5. Revision performed between 2020-2021.

B eyo n d 2 020

Strategy This double scope of the South American market in the context of the 6-year strategy implies diverse and separate strategic actions.

From the production (supply) side, i.e., from the sustainable supply side, RTRS shall: 1 Be more inclusive: boost the increase of hectares and tons of RTRS certified soy, while keeping its recognized and credible accreditation and verification system. A combination of approaches to be developed and deployed: the Version 4 of the RTRS Standard for Responsible Soy Production5; Progressive Entry Level (PEL) to allow the inclusion of more producers; the RTRS Group Certification within cooperatives and local references; the RTRS Standard for Responsible Corn Production to expand adopters of RTRS certification; an impact measurement system to demonstrate positive environmental footprint impact among certified farms.

» 19

2 Approach on engagement: promote RTRS certification as a solution

traders) to create the conditions for the Mass Balance flow to be

that can contribute to deforestation-free supply chains. Engagement

consumed internally (local consumption) and externally (Europe and

with individual producers, cooperatives and producer associations,

Asia). Mass Balance goes hand-in-hand with the availability of a large

promoting different RTRS certified material systems (RTRS Credits

range of sustainable soy-products, soybean meal, oil and biofuel, a

Suporting Responsible Soy, Mass Balance or Segregation). In addition,

comprehensive added-value for the market. CoC certification is a tool

focus on key specific areas to expand and intensify certification (e.g.,

that can contribute to deforestation-free supply chains.

in Mato Grosso and Matopi, in Brazil, enabling sustainable corridors, so

2 Expand South America demand through specific industries: (i)

boosting scale). This includes Jurisdictional Approaches scopes.

aquaculture: reinforce engagement with the aquaculture protocols that

3 Show the added value of certification, Green House Gases (GHG),

already include RTRS sustainability requirement in its feed standards,

incentives: communicate the impact of RTRS certification (good

such as Aquaculture Stewardship Council (ASC), as well as with those

agricultural practices, GHG balance, production yields and social and

other feed standards that haven´t included RTRS requirement yet, to

environmental criteria among producers). The quantitative results of

strengthen synergies and boost Brazilian and Central America demand

the M&E6 should also be a tool for RTRS producers to “brand” their

for this sector; (ii) food companies seeking to decrease their deforestation

sustainable production.

risk plays a role for internal demand among brand owners and retailers;

4 Engage with government, NGOs and financial institutions: seek for

(iii) biofuels market, specifically in Argentina and Brazil, can be developed

benefits for the certification via engagement with government and local

through specific approaches on land use change and GHG impact.

NGOs that promote certification.

5

Look beyond deforestation: RTRS should reinforce the holistic

With this in mind, RTRS plans to:

attributes of RTRS certification, beyond deforestation: social and labor

• Increase the market of certified material allowing RTRS to grow

aspects; biodiversity; good agricultural practices (water, soil, etc.).

in the SA4 market.

• Increase demand for responsible soy within the aquaculture

From the consumption (demand) side, i.e., from the sustainable sourcing

industry in South America allowing RTRS to grow in the SA4 market.

side, RTRS shall:

• Develop and implement “RTRS Logos & Claim Policy – Supply and

1

Demand” to enable reliability and clarity on the claiming procedure

Boost Chain of Custody (CoC) certification development: expand

channels of distribution of RTRS certified flows (e.g., processors and

to avoid misleading claiming and protect RTRS brand reputation.

6. The Monitor & Evaluation (M&E) system was designed to assess progress, performance and impacts of RTRS´certification; it was developed in accordance with ISEAL`s requirements to become ISEAL Community Members B eyo n d 2 020

» 20

ASIA AS A GROWTH DRIVER In this section we will refer to the strategy RTRS will roll out over the 6-year

war”, the result of which is that Chinese farmers are motivated by subsidies to

period in China, Japan and India7. It is concluded that what these three

produce more soy.

countries have in common is an increase in soybean consumption per capita, a fact that reinforces the important role of this commodity in the region.

Moreover, the growing economy, urbanization and the rising middle class is changing Chinese nutrition behavior, as reflected in the growth

Beginning with China, the first fact to consider is that soy products have

of meat consumption8 (more meat and poultry production with soymeal

a “strategic impact” on Chinese food. 30% of the volume of soybean

and corn-based animal feed). On the other hand, the most commonly

grains worldwide (104 MMT in 2018) is consumed in China. The strategic

consumed edible oil in China is soybean oil. Chinese consumers are not

leading document for China’s development (The 14th Five Year Plan for

only changing their eating habits but also their purchasing behavior, as

the period 2021 – 2025) is focused on poverty alleviation, food security,

they mostly choose the convenience of online shopping.

climate change and environmental protection. It is also worth mentioning that as part of its sustainability agenda, China has a long-term goal to

Moving to India, the country has a strong production base of its own (12.4

become carbon neutral by 2060.

Mha). Since 2012, though with fluctuating results, the focus of RTRS in the country has been on certification. Growers in India are mainly smallholders (1

In this scenario, focusing on the food security agenda, China is boosting

to 3 hectares each), meaning that RTRS group certification scope is a feasible

soy (and corn) domestic production. By way of example, in 2007 China

possibility to certify against the RTRS Production Standard; as of the date

adopted the national law on “farmer professional cooperatives” which

the strategy was introduced, more than 29,600 producers have been RTRS

connects small farmers to the agricultural value chain (e.g., processors,

certified under the group certification scope. Civil Society organizations in

traders, retailers, etc.). Added to this are the tensions of the USA-China “trade

India play a key role in promoting RTRS certified production.

7. While this chapter on the “Beyond 2020” RTRS Strategy covers China, South East Asia (Thailand, Myanmar, Indonesia, Philippines, Cambodia and Viet Nam), Japan and India as a region within Asia, based on the priorities established for this 6-year strategy, and on the findings of market analysis and different assumptions, RTRS will focus its strategy and approach in Asia on China, Japan and India.

8. In the last 30 years, China’s meat consumption has quadrupled.

B eyo n d 2 020

» 21

Furthermore, RTRS has had relations with Japan since 2018, when RTRS

In this scenario, RTRS will position its presence in the country as

certification was recognized as compliant with the Sustainable Sourcing

the international “go-to” standard for soybeans, aiming primarily at

Code for Agricultural Products of the Tokyo (initially planned for 2020)

recognition and further uptake of RTRS material in domestic production.

Olympic and Paralympic Games Organizing Committee in 2019, a milestone that opened an opportunity for RTRS to enter the Japanese

To implement this approach it will be important for RTRS to be fully

market. Since then, RTRS deployed some very targeted actions and

aligned and updated with China’s domestic priorities and policies to

established relationships9, aiming at reaching out and engaging new

implement its strategy and positioning in China.

stakeholders in the sector and providing support to organizations in the process of achieving more sustainable supply chains, as well as helping

Simultaneously, RTRS can leverage on the activities of RTRS´ members

organizations to adapt their systems in compliance with the Sustainable

who are already present in China and build a strong alliance, with similar

Sourcing Code for Agricultural Products of the Tokyo Olympic and

Associations and Round Tables, considering their experience and active

Paralympic Games Organizing Committee.

presence in China.

To recap, until now, there are only minor RTRS activities in China, India and Japan compared to the market size. Considering all of the above, however, the window of opportunity for RTRS to enter the region is there.

Strategy For China and the Chinese market, RTRS will position its overarching role as a multi-stakeholder platform to promote sustainable soy, highlighting the value of its international certification standard.

China is rolling out new policies to further standardize the domestic agriculture industry while deploying a ‘“green development” approach.

9. RTRS connected with the Global Alliance for Sustainable Supply Chain (ASSC), which basically promotes sustainable supply chains, protects human and labor rights in Japan, raising awareness about environmental issues around soy supply chains and facilitating the connection between companies, civil society organizations and international initiatives.

B eyo n d 2 020

» 22

To establish RTRS presence in China in 2021, the Association plans to:

As to the approach in India, since certified production in the country is currently a fact, RTRS will develop a strategy plan including investment allocation to strengthen RTRS´ technical role and further promote the

• Use the existing relationships in the domestic production sector

advantages of group certification, together with a market development

to increase the number of certified growers in China.

approach to properly connect supply and demand and contribute to a

• Engage with government departments and representatives.

healthy supply-demand cycle.

• Develop pilot projects to link Chinese corporate businesses to RTRS and demonstrate the added value of RTRS activities.

RTRS plans to increase and consolidate certified production in India

• Cooperate with Chinese stakeholders for the promotion of

through an appropriate group of facilitators including India as a

sustainable consumption and consumer awareness

smallholder certified sourcing region.

• Synergize with similar Associations and Round Tables to learn from partner experiences and become a recognized Association

In relation to Japan, RTRS would preliminarily focus and leverage on

and Certification scheme.

RTRS members with current activities in the country as well as on the new Japanese members’ sustainability agenda and synergize with them to drive sustainability in the Japanese market.

The recognition of the RTRS Production and Chain of Custody schemes by the Sustainable Sourcing Code for Agricultural Products of the Tokyo Olympic and Paralympic Games is the “selling point” to connect and engage with the local soy sector. This will position RTRS certification as a tool and enabler for organizations to accomplish sustainability objectives, specifically for those willing to supply Tokyo Olympic and Paralympic Games.

Increasing RTRS’ membership base in the three countries is a key objective in the strategy.

B eyo n d 2 020

» 23

EXPANDING THE BUSINESS MODEL: FROM SOY TO OIL, SEEDS & GRAINS The number of RTRS soy certifications have been successfully increasing globally since 2011. Beyond soy certification, RTRS Standard for Responsible Soy Production is a management tool and a sustainable strategy, potentially applicable worldwide to several commodities and for multiple purposes, ensuring environmentally correct, socially appropriate, and economically viable processes, as well as deforestation and conversion-free production.

Moreover, continuous cooperation with farmers showed RTRS that there is a need to create synergies and opportunities to replicate soy certification in other crops, primarily corn, a crop typically grown in rotation with soy. Therefore, RTRS will use the “window of opportunity” behind the corn certification standard to keep expanding the value added and benefits of RTRS certification and the global multistakeholder round table.

Strategy Strengthening RTRS vision of sustainable oil, seeds & grains and its position as a multi-stakeholder certification scheme, RTRS will enhance its certification system with the addition of the corn crop.

The RTRS Standard for Responsible Corn Production, developed as an add-on to the existing RTRS soy certification, is based on its well proved five principles: Legal Compliance and Good Business Practices; Responsible Labor Conditions; Responsible Community Relations; Environmental Responsibility and Good Agricultural Practices.

RTRS will launch the corn certification standard in 2021 for RTRS certified soy farmers.

With this in mind, RTRS plans to: • Launch the RTRS Standard for Responsible Corn Production following a step-by-step roll-out and implementation plan in the field to positively and feasibly position the new RTRS certification.

• Develop and implement a communication plan for RTRS Standard for Responsible Corn Production to support the roll-out plan.

B eyo n d 2 020

» 24

NEW OPPORTUNITIES ADDING VALUE TO RTRS CERTIFIED MATERIAL INCLUDING ENVIRONMENTAL FOOTPRINT MEASUREMENT

B eyo n d 2 020

» 25

ADDING VALUE TO RTRS CERTIFIED MATERIAL: ENVIRONMENTAL FOOTPRINT MEASUREMENT The United Nations Sustainable Development Goals (SDGs) provide a

worked steadily on guaranteeing the robustness and value added of the

broader frame for sustainable and healthy development.

certification system, for both producers and adopters of RTRS certified material.

The European Green Deal sets out how to make Europe the first climateneutral continent by 2050. At the heart of the Green Deal, the Farm to

Soy stakeholders ask for environmental footprint data of certified crops,

Fork Strategy addresses comprehensively the challenges of sustainable

especially carbon footprint data. Based on its sound certification process,

food systems and recognizes the inextricable links between healthy

the development of an RTRS environmental footprint measuring system

people, healthy societies, and a healthy planet. With it, the EU’s goals

will create more opportunities for RTRS and soy stakeholders.

are to reduce, among others, the environmental and climate footprint of the EU food system.

At the same time, in 2020, China announced the country aim to achieve carbon neutrality by 2060 and recognized the importance of biodiversity protection globally.

This all sets clear political interests and obligations for both the government and the private sector to work towards achieving this ambitious carbon neutrality commitment.

Over the years, RTRS Standard for Responsible Soy Production and

Strategy Leveraging in its credibility, RTRS will develop its measurement system to demonstrate positive environmental footprint impact among RTRS certified farms. RTRS needs to incorporate more quantitative indicators, to make visible RTRS certified material environmental footprint (Credits Supporting Responsible Soy and Mass Balance). This must be done with a market-oriented strategy that positions RTRS certified material as a low carbon product, among other aspects.

Chain of Custody have been consolidated, while the Association B eyo n d 2 020

» 26

RTRS environmental footprint measurement roadmap started in 2021 and some important approaches are being considered when developing a footprint database of RTRS crops:

Based on this rationale, RTRS plans to: • Measure environmental footprint of RTRS certified material developing the RTRS impact system. In 2020, RTRS hired experts

• The Global Feed LCA Institute (GFLI), the international database with

in GHG and environmental footprint measurement to start shaping

environmental footprint information of thousands of feed ingredient

the RTRS roadmap for the 6-year strategy period.

products. The feed and food industry can use this environmental data to

• After becoming ISEAL Community Member, continue the journey

make assessment of their products.

to become an ISEAL Code Compliant Member, which requires an improvement plan for a stronger RTRS Monitor & Evaluation (M&E)

• The Life Cycle Assessment (LCA), the standardization of products

system in order to collect impact data of the certification, including

developed by the European Commission called Product Environmental

carbon among other relevant environmental aspects.

Footprint (PEF); the PEF includes different product categories under the

• Innovate and implement the RTRS technology package:

Product Environmental Footprint Category Rules or (PEFCR), for example

upgrade current tools and develop new ones to offer “state of the

the PEFCR for feed and for dairy10.

art technology” (e.g., Trading Platform, RTRS´ Footprint Calculator & Conversion Factors), including advancing on traceability from

Moreover, as ISEAL Community Member, RTRS will continue enhancing

production to consumption and on-farm impact measurement.

systematization and measurement in line with ISEAL´s principles,

This will ensure tackling supply and demand needs and better

including the Impact Code.

substantiating RTRS claims.

RTRS’ aim is to add value using available and recognized tools for GHG footprinting; being part of an integral project on environmental footprint impact measurement will create new market opportunities for production and uptake of certified material and will allow buyers to reduce the environmental footprint of their activities and products.

10. Relevant standards to take into account for RTRS are PEFCR for Feed (European Commission, 2018) and the PEFCR for dairy (The European Dairy Association, 2018). The PEF standards are still under development and not all product categories are covered by a PEFCR yet. Nevertheless, the PEF standard will probably be the framework for European legislation in the future, for example for consumer communication.

B eyo n d 2 020

» 27

METHODOLOGY Data sources

Methodology

All figures in this document are based on:

Consumption means the volume (quantity) of a market. It is measured in tons,

• RTRS: internal figures (historical and budget) see: management reports

ktons or MMT. The consumption in a specific country or region is calculated by:

and financial reports; provided by the RTRS operational team.

Production (local or regional).

• UN commodity trade statistics: see: www.comtrade.un.org

+ Imports

• FAO production and trade statistics: see. www.fao.stats

– Exports

• EUROSTAT production and trade statistics in the EU: see:

= Consumption (market volume adopted)

www.ec.europa.eu/eurostat • Donau Soja (Danube Soy) for production statistics out of the Danube

Stock and its variations from one year to the next year are unknown11.

countries.

Consumption volume is used for local processing (e.g., soymeal, soy oil)

See: www.donausoja.org

and feed products.

• IDH Soy Monitor (2018 & 2019).

Data from official statistics (Comtrade, FAO, EUROSTAT) are based on the HS codes: 1201 (Soybeans); 1507 (Soybean Oil) and 2304 (Soybean Meal).

Soybean Equivalents (SBE)12 is the measurement of soy meal and soy oil volumes comparable to soybeans grains. Therefore, soymeal volume is multiplied by the conversion rate of 0.87 and soy oil is multiplied by the 11. The official statistics of Comtrade do not report the stock. FAO statistics report the stock (see: FAOSTAT: New food balance) but only for the years 2014-2017 period.

12 As per the Economic Allocation method of the RTRS Conversion Factors System developed by Austral University and 3Keel.

B eyo n d 2 020

conversion rate of 1.663. The conversion rate for soybean grains is 1.

For projections into the future (2019 to 2026) the Microsoft Excel-Tools Trend-Analysis and Time Series Analysis were used.

» 28

CLOSING The realization of this ambitious and creative project, RTRS “Beyond

and trigger the first brainstorming and set the guidelines of what today

2020” Strategy, has been a process of deeply reviewing and reflecting

is the RTRS “Beyond 2020” Strategy.

on the Association´s journey, its development, its role, its community and ecosystem, its impact, its identity, its objectives... the list is long.

RTRS is your community, and we count on it to carry this strategy forward and achieve the Association´s objectives of sustained, healthy

Having gone through the chapters and topics of this RTRS “Beyond

and innovative continuous growth in this very relevant and demanding

2020” Strategy, we understand that enormous though motivating work

global sustainability ecosystem.

lies ahead.

Once again, thank you very much, see you soon!

We would like to thank all of the experts and reference people in the soybean sector who have participated in this work. The members of

Executive Board Team

the RTRS “Beyond 2020 Strategy Sounding Board, Jan-Kees Vis, Global

• Marina Born, Caldenes S.A. • Jochem Bouwmeester and Aukje Berden, Coöperatieve Rabobank U.A. • Lieven Callewaert, Alliance 4 Soy, representing Arla Foods, Unilever, Friesland Campina, Mars, Vion NV, HKScan Oyj, Lantmännen, and Vandenmoortele NV. • Oswaldo Carvalho Junior, Earth Innovation Institute.

• Regina da Graça Paiva and Maria Cristina Delicato, Associação Amigos da Terra de Sorriso – CAT Sorriso.

• Alexander David and Judith Ginsberg, Lidl Stiftung & Co. KG. • Juliana de Lavor Lopes and Fabiana Luri Dias Doi Reguero, Amaggi Exportação e Importação Ltda.

• Morgan Gillespy and Sareh Forouzesh, CDP Worldwide.

• Stefan Heinke, Bayer AG. • Luiz Carlos Iaquinta Filho, Bartira Agropecuária S.A. • Gisela Introvini and Ana Carolyne Ribeiro Queiroz, Fundação de Apoio a Pesquisa do Corredor de Exportação Norte (FAPCEN).

• Ulises Javier Martínez Ortíz, Fundación Vida Silvestre Argentina.

• Jorn Jasper Schouten, ACT Commodities.

• Hernán Zunino, The Nature Conservancy (TNC).

Director Sustainable Sourcing Development, and Jean-François Timmers, WWF Policy and Advocacy manager, Deforestation and Conversionfree Supply Chains, for their dedicated, critical and enriching insights.

RTRS Secretariat led by Executive Director, Marcelo Visconti, who accompanied with ideas but, above all, guided the implementation of such a challenging project, and Malik and his technical reference people, Constantin Malik; Josef Coellen and Maria Sourlas, who facilitated, systematized and conceptualized the RTRS “Beyond 2020” Strategy on so many occasions, at face-to-face and virtual meetings. Also, a mention of Proforest, which provided an important preliminary overview to feed

B eyo n d 2 020

» 29