1. 3 rd Global Networking Conference on Resource Efficient and Cleaner Production Didier BERGERET Senior Manager

2.  A global industry network of retailers & manufacturers and their business partners  A global organisation with headquarters in Paris and offices in Tokyo and Washington  A unique platform to develop common positions on key strategic, operational and non-competitive issues affecting the consumer goods business  400 members  70 countries  9.9 million employees  US$3.3 trillion in sales » Sustainable working and environmental conditions throughout global supply chains

3. Scope 3 consumer retailer / brand produce grocery non-food home- workers sub- contractor manu- facturer small- holders plantation open market supplier - local agents - global agents - local home- workers agents - global small- holders farms co- operatives open market farms importers Source: ETI annual report 2002-2003 and/or

4. Scope 4 How do retailers / brands guarantee fair labour conditions and decent environmental practices in their supply chains?

5. 42 other members 61 other members Context – over 1000 codes... ICS CarrefourAuchanMonoprixCasinoLeclercConforamaColruyt BSCI MetroMigrosICAAholdKeskoOttoCoop ETI TescoMothercareM&STchiboGapInditexWH Smith JMR Kimberly Clark Ikea Motorola Wal-Mart Levis C&A 8 other members 855 other members 14 other members 69 other members 5

6. The context & challenge B UYING C OMPANIES S HARED S UPPLY B ASE A LL C ONSUMER G OODS R ESULT T ODAY S UPPLIERS A GRICULTURE | I NDUSTRY Carrefour | ICS HP | EICC Migros | BSCI Dole Gap Inc. Walmart Social / Environmental requirements High cost Inefficiency Audit fatigue  many initiatives and programmes  limited collaboration between companies and initiatives  confusion in terms of requirements  focus on passing multiple audits >> limited progress in terms of sustainable remediation & capacity building

7. Governance and membership ADVISORY BOARDTASK FORCE 7

8. goal: enable suppliers to continuously improve working & environmental conditions What is needed to achieve that? build Consensus on basic requirements and best existing practice facilitate Convergence & recognition of existing schemes Support Collaboration and implementation of best practice for remediation & capacity building 8 1 2 3 The GSCP approach

9. the GSCP Reference tools social & environment whathowwho  GSCP Reference Code (social)  GSCP Reference Environmental Requirements  GSCP Environmental Implementation Guidelines  GSCP Reference tools for Audit Process & Methodology (social)  GSCP Reference tools for Environmental Audit Process & Methodology  GSCP Reference tool for Auditing Competence (social & environmental) › open source › based on existing international standards The Reference tools 9

10.  IN SCOPE » Develop best practices reference tools/standards » Facilitate convergence between brands / retailers and schemes. » Allow for mutual recognition of schemes » Encourage local networks/capacity building » Support government efforts to bring harmonisation of requirements to global supply chains GSCP Scope 10  OUT OF SCOPE » Execute audits » Implementation » Deliver capacity building » Certification / Accreditation » Manage data

11.  Shared sustainability agenda » Growing integration by multinational companies of development and CSR objectives to their core business » Corporate efforts in developing countries produce successful development results, including employment opportunities, human/institutional capacity building and technology transfer (triple bottom line)  Similar challenges » Scale up = reduce the effort required per company to implement » Mainstream = embed drivers and incentives for implementation

12. Resources available Making Private Standards Work for You: A guide to private standards in the garments, footwear and furniture sectors Interactive, multi-stakeholder model for CSR management integration (aligned with ISO2600, GRI and UNGC) Sustainable Value Chain Development (agro-industries)

13. UNIDO – GSCP Cooperation » Develop capacities within clusters of suppliers (SMEs) to allow them to improve performance (triple bottom-line) and ability to comply with industry Reference requirements (GSCP) » Enable a common understanding of continuous improvement » Foster market access for suppliers by integrating into global supply chains and ensuring productivity and sustainability. » Building Local capacity for upscaling and replication using a standardized Capacity Building and monitoring/reporting toolkit Overall Objectives

14. Rationale: Work with the industry reference (GSCP) to: › Develop capacities within clusters of suppliers (SMEs) and local institutions on productivity and social/environmental sustainability › Prepare suppliers to comply with buyers’ requirements on social, ethical and environmental aspects (any company/code) How? › By aligning UNIDO Capacity Building Toolkit (REAP/RECP) against the GSCP Reference tools in both social & environment fields › By using GSCP momentum & convening power to get buyers or group of buyers to engage their prospect or current suppliers through the process (as a means to access markets)

15. Existing Framework --------------------- REAP | RECP Methodology, tools & Training Package + + Network of trained counsellors / assessors (Indutry, Social/ENV) = Capacity Building toolbox for Suppliers Industry expertise, local presence, capacity and linkages with local governments and PS // Alignment with GSCP on Social & Environmental requirements

16. 1 1 2 2 Update and tailor the “Toolbox” Global Roll-out Plan Pilot Inception Pilot Implementation 3 3 4 4 » Align UNIDO tools with GSCP Reference Requirements to build a full Capacity Building Package » Design and carry out pilot implementation with members companies and their suppliers » Develop models to roll out implementation at global level. Roadmap

17. UNIDO at a Glance » Transfer of know-how: upgrading of suppliers to increase access to new markets and improve the supply chain; » Bridge the gap between suppliers and buyers to create wealth, enhance trade and increase consumer protection; » Integration of the development dimension with capacity building of buyers & suppliers on quality/safety/sustainability/productivity » Public Goods/Open Source: making available a variety of methods and tools (‘UNIDO Toolbox’) to suit different development needs and industry sectors, combined with networks of local service providers

18. UNIDO Sustainable Supplier Development Programme  Result: enable clusters of suppliers in developing countries to: » gain access to profitable new market opportunities » establish long-lasting business linkages with buyers » generate new jobs and income opportunities » increase availability of sustainable and safe products

19. Overall Benefits With Potential SuppliersWith Current Suppliers Qualification pre-audit Risk mitigation Tailored training and capacity-building » » Benefits for buyers Market Access Productivity/efficiency Tailored training and capacity-building Benefits for suppliers Work on NCs Autonomy Reduction of NCs Scalable Replicable Allows supply chain management More balanced relationship with buyers Does not replace audits but can work at two levels with associated benefits

20. “Short-list” of potential areas (countries/products) for full GSCP pilot CountryProducts?Comments TurkeyTextilesAlready have good infrastructure and REAP experience BangladeshTextiles“Hot topic” – UNIDO has good presence Malaysia? Vietnam? Thailand? Electronics?Build on pre-pilot in Malaysia? South AfricaPrimary production (fruit?) Some GSCP members have expressed interest Costa Rica? Colombia? Primary production (coffee? Fruit?) Possible alternative to South Africa China??Chemical / electronics?Possible language issues Egypt??Food? Textiles?GFSI experience, but current political climate difficult

21.  UNIDO Deputy to the Director General Taizo Nishikawa » “Industry plays a paramount role in achieving sustainable development and business partnerships are indispensable.” » “The GSCP is one of the most influential groups of private sector manufacturers and retailers that address social and environmental sustainability of their supply chains; we therefore attach great importance to expanding our cooperation with the GSCP and are committed to making full use of our resources to substantiate this important partnership”.

22. 22 www.gscpnet.com Didier BERGERET d.bergeret@theconsumergoodsforum.com » Questions? Thank you!

23. ActivitySource of funding Development/adaptation of Training packages, assessment tools, software, translation of material… UNIDO/donors/academia Local Capacity Building and training of trainers UNIDO/donors (Buyer in kind – HR/logistics) Pilot implementation (training, assessment, mentoring/couching, upgrading…) UNIDO/donors, cost-sharing with buyers, suppliers and local institutions/schemes (i.e. IMC in Egypt, SME Coro Malaysia...) Roll-out Buyers, suppliers and local institutions/schemes (UNIDO technical guidance) BUSINESS MODEL