A Practical Application for Measuring the Sustainability of Ben & Jerry’s Dairy Suppliers April 2003

Agenda Client and Team Background & Problem Statement Deliverables Methodology Timeline Budget

Client and Team Client  Andrea Asch, Manager of Natural Resource Use, Ben & Jerry’s Team  Carey Bylin  Ruchi Misra  Mindy Murch  Wendy Rigterink Advisor  Greg Keoleian Advisory Board (TBD)  Ben and Jerry’s  Unilever  Academia  Government  NGO  Other Corporations  Farmers

Background Ben & Jerry’s actively sources agricultural inputs from socially and environmentally responsible suppliers Issue-driven (BGH-free, Rain Forest Crunch, Chocolate Fudge Brownie, For A Change) Does not use a comprehensive set of sustainability indicators to evaluate or select suppliers

Sustainable Ag: Triple Bottom Line Environmental Economic Social

Unilever Sustainability Indicators Soil fertility/health Soil loss Nutrients Pest management Biodiversity Product value Energy Water Social/human capital Local economy

Soil Fertility/Health Indicator Soil is fundamental to agricultural systems, and a rich soil ecosystem contributes to crop and livestock performance. Sustainable practices can improve beneficial components of the soil's ecosystem. Parameters: Number of beneficial organisms (e.g. earth worms per square meter) Number of predatory mites Number of beneficial micro-organisms Soil organic carbon (measure of healthy soil structure)

Problem Statement What environmental, social, and economic indicators should be used to evaluate the sustainability, beginning with dairy farming? What indicators are most practically evaluated in the field? What criteria and metrics should be used to evaluate sustainability for each indicator? How should the indicators be used to enhance Ben & Jerry’s decision making for selecting suppliers?

Deliverable A comprehensive set of indicators for dairy that considers social, environmental, and economic factors  Scientifically valid, yet understandable to suppliers  Implementable tool Method for modifying tool so that it can be used for other ag inputs

Methodology 1. Literature Review & Interviews Global Frameworks Ag Indicators Dairy-Specific Indicators Academia Corporations & NGOs Current Suppliers Government Institutions

Methodology 2. Screen indicators for usability (verifiability, measurability, ease of collection) 3. Develop metrics or standards for each indicator 4. Design template to evaluate supplier sustainability 5. Field-test template Dairy-Specific Indicators Usability Screen Template Field-Testing

Timeline MarchAprilMayJuneJulyAugSeptOctNov Jan & Beyond Dec Project Planning Development of Indicators Create 1 st Draft of Template General Literature Review on Ag Indicators Research on Corporate/ NGO Practices Field Testing Report Writing Final Presentation to B&J Edits Initiate Formation of Advisory Group *All timeframes indicate when the task will be completed. Definition of Metrics/Standards Develop Outline of Final Report

Budget Project Costs Research and Supply Costs 2,240 Student Hourly Costs 10,500 University Overhead 7,260 Total Project Budget20,000 Travel Costs Airfare for 2 to $400/person, 2 trips1,600 Airfare for 4 to $400/person, final trip1,600 Airport Parking (9 $15)135 Vehicle Rental500 Lodging & Meals (9 $100/person)2,000 Total Transportation Related Expenses5,835 TOTAL25,835

Questions?