Here’s my feature story from Day 1 of the Sustainable Brands ’14 conference, held June 1-4 in San Diego, CA.
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When all the right people work together — from suppliers to brands who use their products to NGOs — and commit to extraordinary goals, transformational change is not only possible, it happens.
That’s what participants saw in action at Monday’s afternoon workshop on progress being made and the work ahead to support the emerging “new norm” of zero deforestation in forestry supply chain standards. Major responsible sourcing commitments in forestry in the past few years are helping protect rainforests, promote safe labor practices, and drive down carbon emissions.
Future 500 CEO Bill Shireman led a conversation with major forestry supplier Asia Paper and Pulp (APP), leading consumer-facing brands, and NGOs. Setting the stage, he said, “We’re seeing the roles that different groups play in the process of transformation—to create tipping points where change becomes transformative.”
Fresh off a 20-hour plane ride, Aida Greenbury, APP’s Managing Director for Sustainability and Stakeholder Engagement, shared how her company’s historic 2013 Forest Conservation Policy (FCP) came about after years of activism — transformed into collaboration — with NGO partners The Forest Trust and Greenpeace. Speaking of APP’s commitments, and the contentious path to get there, Greenbury said, “It’s an unfolding story of relationships, customer requests, conversations, friction and all the history behind it.”
Senior brand leaders on the panel included Kevin Petrie from Nestlé North America, Mark Buckley of Staples, and Sarah Severn from Nike. Robin Barr from The Forest Trust, Greenpeace’s Amy Moas, and Chris Elliot from Climate and Land Use Alliance (CLUA) represented the NGO communities.
A key theme was the process of building personal relationships based on trust in the midst of fierce disagreements on business practices, complicated and opaque supply chains, and remote physical locations. Speaking about what makes groundbreaking environmental commitments possible, Robin Barr, director of The Forest Trust said: “Transparency is the best way to build trust. You have to engage in a conversation on transformation.”
Barr discussed the importance of helping suppliers and brands recognize their responsibilities and roles to solve global problems like deforestation: “We’re all responsible because we’re all in the same supply chain.” And on the power of brands to lead change, she said, “Brands have the potential to make a difference. When you ask your suppliers to do something different or meet standards, that means something to them.”
“When one player changes the way they operate, the situation changes,” she saiid.
Shifting to the brand perspective, Kevin Petrie shared how Nestlé’s Creating Shared Value program for water, nutrition and rural development responsibility led to the company’s 2010 announcement that Nestlé products will not be associated with deforestation. And from there, how this led to responsible palm oil sourcing commitments.
A fascinating part of the discussion centered on the complicated issues brands face reestablishing purchasing relationships, once supplier deforestation commitments are in place and shown to be working. Mark Buckley, VP of Environmental Affairs at Staples, shared the challenges of moving away from a supplier relationship and then stepping back into it. Petrie noted that Nestlé will examine buying from APP again once assurance audits are done.
As well as the relationship between suppliers, brands and NGOs, brands are working together on issues where they share common interests, specifically climate policy. Severn spoke about her company’s collaborations with other leading brands as a BICEP founding member, a Climate Declaration signatory, and the We Mean Business coalition.
“It’s not good enough to be silent,” she said. “Our legislators need to know that companies care.”
The roundtable was the first meeting of a new multi-stakeholder initiative led by Future 500 and Sustainable Brands. The group seeks to bring together major brands, suppliers and NGOs to solve problems by redesigning how stakeholders can work together, instead of as combatants, to fully tap the power of supply chains to drive sustainability. Shireman encouraged anyone interested in participating in future conservations like this to contact him.
This conversation continues today at a 2pm breakout session on Avery Dennison’s responsible paper sourcing policy in partnership with the Rainforest Alliance.
Summing up the roundtable, Shireman referred to each responsible sourcing commitment as a domino, or multiplier, for reaching the tipping point of zero deforestation. Greenpeace’s Moas pointed to last December’s unprecedented No Deforestation announcement by Wilmar International, the world’s largest palm trader, and that new palm oil commitments are being announced nearly every month.
While global deforestation is still an ongoing crisis, this conversation showed that progress is happening. “As solutions get developed and prove successful in the marketplace, you can no longer say it’s not possible,” said Barr.