1. The Sustainability Consortium (TSC) Koen Boone - Director Europe TSC LEI - Wageningen UR Food SCP roundtable, Brussels 20-11-2013

2. Content Introduction TSC Sustainable Measurement and Reporting System Use of TSC products 1

3. How our Work Fits In 2 Detail/Specificity Breadth Covering social & environmental Covering 80% of consumer goods impacts in 2 years (already > ~40% of the way) Full lifecycle approach Member-based funding model (today) “Traditional” LCA TSC Product Category Corporate Reporting How TSC’s SMRS Fits In

4. The Consortium is coordinated by universities in the United States, Europe and China

5. We are a Global Membership Organization 4 We have members from business, academia, government and the NGO sectors. Corporate annual turnover exceeds 2 Trillion Euro

6. TSC product category output has 3 major components… 5 Category Dossier Collection of evidence on product category environmental and social hotspots, and improvement opportunities Category Sustainability Profile (CSP) Synthesis of product sustainability knowledge and improvement opportunities Key Performance Indicators (KPIs) Questions to measure and track product category sustainability Source: TSC

7. Product categories Batch 2 Beans, Nuts, & Oils CDs and DVDs, Printer Ink Dairy Paper- Facial tissue, greeting cards, paper towels Personal Care - Baby diapers, baby wipes, feminine/nursing hygiene Produce Small appliances Sugars & Syrups Tea & Coffee Plush toys Batch 3 Aerosol air fresheners Hand & body lotion Lumber Bananas Chocolate Farmed shellfish Wild caught fish Eggs Chicken Batch 1 Computers, Monitors, Televisions, Mobile Devices, Printers Beef, Milk Laundry Detergent, Surface Cleaners, Showering Products Toilet Tissue, Copy Paper Plastic Toys Grains, Packaged Cereals, Bread, Beer Cotton Farmed Salmon Wine Batch 4 Berries/Small Fruit Pome fruits (Apples) Citrus Pork Small Batteries Bicycle Hand Tools (unpowered) Flatware Aerosol air freshener 6

8. Example for pork 7 Category Dossier Category Sustainability Profile (CSP) Key Performance Indicators (KPIs) Source: TSC Literature cited and levels of evidence evaluated. Feed: Energy LCA > 50% (Cederberg et al. 2009) GHG LCA >50% (Dalaard, 2007) Nutrients (de Vries en de Boer, 2010) Land use (Dolman, 2012) Worker health (Smith et al., 2013) Hotspots and improvement opportunities summarized. Improvement opportunities: Feed conversion Feed additives Feed formulation Benchmarking Precision agriculture On average what is the feed conversion ratio for delivered pigs? A. Unable to determine at this time B. Participate in external initiative C. Have determined average feed conversion rate only for finishing phase D. Overall feed conversion rate is greater than or equal to 3.1:1 E. Overall feed conversion rate is between 2.8:1 - 3.1:1 F. Overall feed conversion rate is less than or equal to 2.8:1

9. 8 Sustainability Measurement and Reporting System Innovation Education/Training Policy/strategy setting - Supply chain Communication to consumers Procurement Transparency Improvement plans Risk/impact management How are TSC Knowledge Products being implemented throughout supply chains?

10. Retailers “Manual” Process Process with Reporting Platform TSC Step 1. Each retailer gets completed KPIs & Questions from TSC RetailersManufacturers Step 2. Each retailer emails questions to each manufacturer Step 3. Each manufacturer emails question response back to each retailer Manufacturers Step 4. Each retailer completes manual collation of results TSC Retailers Manufacturers IT Platform Single Upload Single Request Single Response A simple software tool can cut significant time and effort for everyone involved Reporting Platform 9

11. Use of results – Exchange of KPI scores 10 USA: Wal-Mart Fall 2012: 5000 suppliers responsible for billions of sales January 2014: Thousands of suppliers Toy wires: Save wires good for 8 times around the world Europe: Delhaize and M&S: Small scale pilots Ahold Start 1 st of January 2013 All own branded products by 2015 Co-operation with farmers organization (ZLTO) and Rabobank Winter 2014: Implementation of SAP tool by large number of American and European retailers?

12. ELECTRONICS FOOD BEVERAGE & AGRICULTURE HOME & PERSONAL CARE PAPER, PULP, & FORESTRY PACKAGING TOYS RETAI L MEASUREMENT SCIENCE CLOTHING, FOOTWEAR & TEXTILES The Retail and Measurement Science Consortium Working Groups consists of Tier I retailer members. Four years ago, when I received an email from the wine team asking for an attribute in bulk shipping, I would have spent two weeks on Google, and talking to people about wine, trying to understand if bulk shipping counted. I probably would have told them no. My buyer would have sulked, given up on sustainability and we would have not made progress in the wine category. This year, I looked up the information in The Consortium’s CSP’s and KPI’s. I then checked this information against the supplier and wrote an email back that day approving the category. Carmel McQuaid, Marks & Spencer GENERAL MERCHANDISE TSC ® working group structure focuses on major consumer goods sectors. Together they have identified over 500 unique improvement opportunities and 400 hotspots

13. v v Co-Operating With Other Initiatives v EU Environmental Footprint Participating in piloting (Detergents, shoes, retail and food) Consumer Goods Forum Endorsed TSC WBCSD Working on structural co-operation Global Reporting Initiative MoU? Green Public Procurement Dutch and American government SAI Beef/Dairy CDP: TSC member Sector, Product or sustainability theme specific initiatives

14. The Sustainability Consortium was ranked as a top ten world changing ideas for 2012 by Scientific American Magazine. TSC measurement and reporting system has been recognized as superior due to its comprehensive nature and cross-sector approach. “The Consortium’s ratings will factor in closely held data on emissions, waste, labor practices, water usage and other sensitive factors…” –Adam Piore, Scientific American The Sustainability Consortium ® has been recognized as a World Changing Idea by Scientific American Magazine