Evolving Practices in Sustainability Assurance Karin Kreider Sustainability in the Food Supply Chain, September 2011 Photo © Rainforest Alliance

Introducing the ISEAL Alliance Our Tools: ISEAL Codes of Good Practice (Standard-Setting, Impacts, Assurance…) Our Members: Voluntary social and environmental standards systems Our Focus: Scaling up social and environmental impacts Our Strategies: Shared learning, collaboration, stakeholder engagement and awareness raising

Members of the ISEAL Alliance 12 members in full compliance with ISEAL Membership Criteria (including compliance with existing ISEAL Codes of Good Practice and other internationally recognised guidance including ISO Guide for Accreditation Members) 7 newer members have committed to demonstrate full compliance within 1-3 years from the date of membership approval.

Members of the ISEAL Alliance

Assurance Standard- Setting Impacts Elements of Credibility Open and transparent Multi-stakeholder process Defines purpose and necessity of standard Auditing Certification Accreditation Social Environmental Economic Claims and Labelling Relevant measurable, objective criteria Traceability Accurate claims

Components of Assurance All-encompassing term, as defined by ISEAL to include: Auditing – Competencies, training, evaluation Certification – 1 st party – 2 nd party – 3 rd party Accreditation AuditingCertificationAccreditation

Photo © Fairtrade International Three core functions – Setting the standard – Assessing compliance with the standard – Measuring the impacts of compliance Proxy for direct relationship between producer and consumer What does credible assurance look like? Role of Assurance in a Standards System

Photo © Fairtrade Foundation Simon Rawles What if effectiveness is defined as contribution to impact? What is the value-added that assurance can bring? Define effective more broadly, as assurance that is: – Replicable – Impartial – Accessible / Affordable – Transparent – Locally accountable – Scalable Redefining Effective Assurance

Current Issues Impacts Credibility Cost & Accessibility Photo © Rainforest Alliance

Photo © Marine Stewardship Council Strong ISEAL member support drives development Multi-stakeholder consultation 9 member Steering Committee 9 member Technical Committee First draft for consultation in November At least 2 rounds of public consultation Expected completion June 2012 Credibility: Developing an ISEAL Assurance Code

Proposed Scope of Assurance Code Include some or all of the following issues – Auditor Competence - screening, training, qualification, calibration and monitoring – Audit implementation – minimum requirements for good practice + guidance notes to ISO 17065, – Transparency – additional requirements (beyond ISO) where needed – ‘transparency can reduce the need for excessive rigour’ – Standard quality – consistent interpretation of standards – Accessibility – deals with the challenges of cost and access and will include innovative options Complementary to ISO standards (17011, 17065, 17021) Requirements apply to scheme-owner; & CBs and ABs where appropriate

Doesn’t ISO already provide enough guidance? ISO Standards (65, 17021, 17011) form a strong foundation – Systems-based – Supporting impartial, independent and consistent results Assurance of sustainability standards requires more – Competence, transparency, accountability, accessibility ISO acknowledges Scheme-specific guidance is necessary (17067) – Auditor competencies, audit process, decision-making Assurance Code as scheme-specific guidance for social and environmental standards systems – Potentially includes interpretation of ISO standards

Consultation Findings – In Brief

External Trends and Advances Strong trend amongst other programs (e.g. ISO, food safety) to place increased emphasis on personnel competency and potential for personnel certification. IFOAM’s participatory guarantee system encourages self and/or peer assessment. Successful when local stakeholders are fully involved. GlobalG.A.P. operates a certification integrity program, which checks if outcomes achieved and calibrates accreditors and certifiers. Audit technology is rapidly developing.

Audit Technologies Audit technologies have been developing rapidly, enabling the following – Workflows built into software - checklists change based on responses – Options to select descriptions of how the client achieving conformity, beyond yes / no – Logic rules ensure complete audits and identify inconsistencies – Information on risk used to change audit frequency or intensity – New reporting tools, combined with faster hardware, increase ability to extract information from data – Operating costs and response times are lowered – Use of mobile phones for data transfer allows relatively low cost, almost ubiquitous access

Credibility: Auditor Competence Options for Addressing: Common requirements for training, qualification, monitoring Common training platform Central (common) registration/accreditation programme for auditors Certification of auditors Guidance notes to ISO Photo © Chris Wille

Cost and Accessibility: Risk-based Approaches Certification as a risk management programme Audit risk is the risk that the audit will not provide an accurate conclusion as to client conformity Expressed by multiplying three factors: – Control risk – the risk that the client does not know that their system is non-conforming – Inherent risk – risks associated with the client, the industry or culture – Detection risk – the risk that the audit will miss non-conformities if they exist

Options for addressing cost and accessibility Use of risk assessment to reduce audit frequency Finding other benefits from assurance (capacity building, data gathering) Providing options for the right level of assurance based on risk and stakeholder demand Increasing transparency while reducing audit requirements Guidance to ISO (for capacity building, access for small CBs)

Photo © 4C Association Group Certification: Facilitate access for small holders – Shared research – Adoption of common procedures for group certification Joint Audits between Standards Systems Cost and Accessibility

Photo © Marine Stewardship Council Impacts Collaboration Learning Innovations Accessibility Conclusions Photo © Rainforest Alliance

For More Information: Karin Kreider Scaling Up Director