1. BSI Meeting London 17/1/06 The Better Sugarcane Initiative – Impacts and Benefits on the Global Sugarcane Industry R Quirk, H Morar, R Perkins, G Kingston, W Burnquist G Kingston, W Burnquist

2. BSI Meeting London 17/1/06 Why interest in the initiative? Interest by consumers and marketers in environmental & social provenance of food ingredients. WWF & IFC initiate multi-stake holder programs to link market preference for products from endorsed BMP environments. Work in progress for cotton, soy, palm oil, sugar, salmon aqua-culture. Best or Better Management?

3. BSI Meeting London 17/1/06 Better Sugarcane or Better Sugar? Sugar – commodity –Little value adding at production source. –Most sugar consumed in processed food in developed nations. –Thus little opportunity for consumer to make choices about source. Sugarcane – the base resource –Sugar. –Ethanol, Electricity, Paper, Chemicals, by- products etc.

4. BSI Meeting London 17/1/06 Working group meeting 6 th June 2005 Initial group sectors –Finance 7 –Market /buyer 9 –Prod’n & Tech.10 (5+5) –Social & Labour 4 –WWF 3 Agreed need for prod’n & processing in environ., socially & economically sustainable manner. Goal to be met through BSI. Stakeholders will be engaged to develop relevant, performance based & verifiable criteria to describe sustainable practices in value chain. BSI also foster implementation of BMP as these often more profitable.

5. BSI Meeting London 17/1/06 Working group process Background Sugarcane –semi-perennial grass, replant 4-6 yrs –grown latitudes ±30˚ –producer scale “n” x 10 6 t to <1 ha –large biomass –high nutrient & water use – chemicals –central processing at mills –products – sugar, syrups, ethanol, filter mud, bagasse, ash, vinasse, chemicals, paper

6. BSI Meeting London 17/1/06 Background Mills may provide important social services to remote communities. Most of world’s sugar production (~70%) consumed in domestic markets. Sugar production & marketing regulated by complex of public & private policies & institutions. Opportunity for BMP initiative with support of financiers & sugar buyers. Working group process

7. BSI Meeting London 17/1/06 Working group process Background Setting the scene ( presentations on WWF web site ) –Global overview of sugar markets & policies. –The practices of growing sugarcane. –Global overview of environmental impacts of sugarcane production. –Global overview of social impacts of sugarcane production. –Field issues - water use, effluents, soil health & degradation. –Habitat loss and protecting ecosystem function. –Occupational health & safety. –Transgenic sugarcane. –Mill issues & co-products. Groups prioritized issues / impacts

8. BSI Meeting London 17/1/06 Key global impacts & priority issues Field environmental impacts –Soil health (chemical & physical fertility, organic matter, biodiversity –Water use (water demand, water use efficiency) –Generation of effluents (soil erosion, chemicals & nutrients in run-off / drainage) –Loss of habitat

9. BSI Meeting London 17/1/06 Key global impacts & priority issues Labour issues –Work place health & safety –Child labour –Casualisation of labour; ~18M sugar workers –Wage levels

10. BSI Meeting London 17/1/06 Community impacts –Access to water –Health –Education Key global impacts & priority issues

11. BSI Meeting London 17/1/06 Processing impacts –Food safety –Worker safety –Mill environmental issues Dust Noise Smoke & ash Effluents (BOD, vinasse) –Water use Key global impacts & priority issues

12. BSI Meeting London 17/1/06 The way forward Elements to BMP’s in key areas will have global perspective & local refinement for implementation. Some thought that the mill might provide a focus for implementation / verification of BMP’s. Public policy support important for BMP’s & incentives. Blend of public & private finance. Equatorial principles for IFC finance not currently relevant to BMP issues. Process for incentives, other than improved profit not clear.

13. BSI Meeting London 17/1/06 Working Group agreed: –To maintain open, honest, respectful communications; –To develop protocol for external communications; –To form steering committee reflecting interests of stakeholders; –On the previous key global impacts. The way forward

14. BSI Meeting London 17/1/06 Goals (re-stated) To define better sugarcane production and processing practices to benefit the production system, its value chain economics as well as ecological and social environments. To develop performance-based and verifiable standards, and To foster their implementation for measurable reduction in key impacts.

15. BSI Meeting London 17/1/06 A possible structure Steering Committee 8-10 members Coordinator Financial sponsors Legal Entity Contracts, receive $, payments Multi-stakeholder forums <100 institutions & experts Bi-annual regional meetings Funded by participant $ Cane production Cane processing Social / community Other? Technical working groups 6-8 experts & leader Develop BMP’s & assessment criteria

16. BSI Meeting London 17/1/06 Impacts & benefits Concerns (to be managed) –Uncertainty about process & implications. –Cost & finance of management change. –Degree of control of agenda. –Access to technology. –Loss of un-sustainable production areas. Benefits –Quadruple bottom line sustainabilty Improved profits, maintenance of resources, no or reduced off-site impacts & social equity. Progress with Better Management Practices –Australia, South Africa, Florida, Brazil Build on current initiatives.