1. Smail ALHILALI Cleaner & Sustainable Production Unit Environmental Management Branch UNIDO

2. 3 rd Global Networking Conference on RECP (RECPnet) Sustainable Agro Value Chains 3 September 2013 Montreux, Switzerland 2

3. Developing an environmental tool for the agro-industry 3 GII Achieving equitable economic growth without harming the environment Seizing opportunities in terms of sustainable industrial development Growing global demand for green solutions 3ADI Accelerating the development of agribusiness and agro-industries Promoting sustainable development Adding value to agricultural commodities Designing a tool for the diagnosis and remediation of environmental sustainability of agro value chains Tool Millennium Development Goals Accelerating the development of agribusiness and agro-industries Promoting sustainable development Adding value to agricultural commodities UNIDO’s vision Achieving economic progress and environmental sustainability simultaneously

4. The tool will help to take sound decisions 4 Guiding principles 1 2 3 4 5 Focusing on environmental sustainability Facilitating sound, evidence-based decisions Being of practical nature Enabling rapid use Ensuring transferability Key characteristics 1 2 3 4 Taking into consideration the whole value chain and multiple stakeholders; being applicable in all sectors Covering multiple environmental parameters Requiring little skills and resources Requiring little data Taking sound decisions Identifying greatest hot-spots in a value chain Benchmarking impacts of different value chains Designing scenarios Designing interventions Monitoring and evaluating interventions No current tool can fulfill all requirements; hence it is necessary to develop a new one

5. The tool will encompass a five step process Step 1 Specification of the value chain Who are the commercial stakeholders in the chain? (producers, traders,…) Step 2 Material flow What are the key activities at each stage in the chain? (manufacturing, transport,…) Step 3 Environmental hot-spots What are the specific environmental impacts of interest? (carbon, water, waste,…) Step 4 Relationships and information flow What are the strength of relationships and the flow of information along the chain? Step 5 Value chain map How does the current state look like? (relationships, information flow, environmental hot spots) 5 Identifying benefits for stakeholders Five step process Flexibility is key The tool can be used by a variety of decision makers working at different levels at different stages in the chain Data of different type from different sources and in different formats can be integrated Environmental indicators can be selected according to the needs of a specific value chain

6. The value chain mirrors the businesses, activities and relationships 6 Functional activities Business organizations Technology provision ProductionTransformationDistributionConsumption Researching, developing,… Planting, harvesting,… Sorting, packaging,… Storing, transforming,… Consuming BreedersFarmersPackaging stationTradersConsumers Definition of the value chain (UNIDO) A value chain can be understood as a set of businesses, activities and relationships involved in creating a final product of services. It builds on the idea that a product is rarely consumed in its original form, but becomes transformed, combined with other products, transported, packaged and marketed until it reaches its final consumer. In this sense, a value chain describes how producers, processors, buyers, sellers and consumers – separated by time and space – gradually add value to products as they pass from one link in the chain to the next.

7. The value chain can be applied in environmental management 7 Land resourcesEnergy resources Material resources Emissions to land Emissions to water Emissions to air Mining and extraction Fertilizer production Chemical production and formulation Crop cultivation Crop storage Bread or bear or oil production Packaging Retail outlet Expired food and packaging disposal Consumption phase Transport

8. A number of environmental indicators have been developed 8 EEANFICADefra Air pollution Biodiversity Chemicals Climate Change Environment and health Land use Natural resources Noise Soil Waste and materials Water Removals from the environment Energy Water Other materials Emissions to air Emissions to water Emissions to land Resource use Emissions and discharges to the environment Air Water Land Various indicators Few indicators Holistic Complexity Simplicity Incompleteness Trade-off GRI Materials Energy Water Biodiversity Emissions, effluents and waste Products and services Compliance Transport Overall

9. The nine boundaries may serve as a checklist for the tool 9 Nine planetary boundaries (SRC, ANU) Climate change, stratospheric ozone depletion, land use change, freshwater use, biodiversity loss, ocean acidification, nitrogen and phosphorus inputs, atmospheric aerosol loading, chemical pollution Help to focus on the essential environmental factors; serve as a checklist Allow to adapt according to the needs of different agro-industry sectors, locations or actors in the value chain Eleven dimensions of human deprivation (Oxfam) Water, food, health, gender equality, social equity, energy, jobs, voice, resilience, education, income Help to prioritize the essential social issues Eradicate poverty and inequity

10. A number of approaches and tools have been studied and evaluated 10 Method or tool Does it apply to the whole value chain? Is it multi- parameter? Does it require specialist skills to implement? Level of data required (1=low; 3=high) Australian Agriculture environmental reporting framework Yes No1 ECoSCAnYes No1 Hot spot analysisYes No1 Integrating poverty and environmental concerns into value-chain analysis Yes No1 ESPXYesNo1 GSCP reference toolsYes No1 Exact carbon balance tool YesNo 1

11. A number of approaches and tools have been studied and evaluated 11 Method or tool Does it apply to the whole value chain? Is it multi- parameter? Does it require specialist skills to implement? Level of data required (1=low; 3=high) SMRS Level 1Yes No2 Fieldprint CalculatorNoYesNo1 AgBalanceYes 2 Environmental sustainability indicators Yes 2 Material Flow Accounting Yes 2 Cool Farm Tool for measuring GHG emissions No 1 Footprint ExpertYesNo 2

12. A number of approaches and tools have been studied and evaluated 12 Method or tool Does it apply to the whole value chain? Is it multi- parameter? Does it require specialist skills to implement? Level of data required (1=low; 3=high) Product Environmental Footprint Yes 3 GAIA biodiversity Yardstick No 1 LCAYes 3 Rise 2.0NoYes 1 SMRS Level 2Yes 3 Sustainable Value Chain Analysis Yes 3 Sustainability LCAYes 3 Habitat HectaresYesNoYes2

13. A number of approaches and tools have been studied and evaluated 13 Method or tool Does it apply to the whole value chain? Is it multi- parameter? Does it require specialist skills to implement? Level of data required (1=low; 3=high) Water Footprint Assessment Manual YesNoYes2 Exergy AnalysisYesNoYes3 SWATNoYes 3 Calculation of carbon footprint YesNoYes3 Sustainability Performance Assessment NoYesXX Water Footprint Assessment Tool YesNoXX

14. A number of things have to be done 14 Tasks 1Review and confirm or amend the description of intended uses for the tool 2Review and confirm or amend the guiding principles and key characteristics 3Use the above two elements to form the core of a brief for the design of a tool 4Consider further a conceptual framework for the tool 5Review current methods and tools 6Develop the 5-stage process 7Design the tool in an innovative way 8Ensure that developers of the tool liaise directly with ultimate users of the tool 9Put in place appropriate training and support for the future use of the tool 10Embed a mechanism that ensures the tool is kept under review and is improved

15. Thank you Smail ALHILALI Cleaner & Sustainable Production Unit Environmental Management Branch UNIDO, Vienna, Austria s.alhilali@unido.org s.alhilali@unido.org 15