1. The UN Forum on Sustainability Standards (UNFSS)
Intergovernmental Forum of Dialogue on Voluntary Sustainability Standards
ICCO Workshop, Douala, Cameroon June 24-27, 2013
Christopher Wunderlich: UNFSS coordinator
Jutta Steinmann: UNFSS support team
In name of the 5 UN agencies that have formed the UNFSS I would like to thank the ICCO for this opportunity to be with all of you during this important workshop. All of the 5 agency: FAO, ITC, UNCTAD, UNEP and UNIDO are working directly on the issue of Voluntary Sust. Standards and certification programs. Therefore it is a pleasure to be here with the ICCO who has also identified the impact and importance of sustainability cert, and is constructively and proactively addressing this issue. The 5 UN agencies forming the UNFSS, as intergovernmental organizations, believe that these programs are increasingly having an impact on international trade and on sustainable development, and that governments need to take a more proactive role in addressing them. We believe that governments need to have more information about these programs, and opportunity to discuss their benefits and constraints and a mechanism to proactively engage with them. We believe that the ICCO is also taking a similar approach and so are very pleased to be participating with the ICCO and its members in this process of understanding these programs better and to examine how sustainability certification can be potentially used as important tool to promote sustainable development. 1

2. United Nations Forum on Sustainability Standards (UNFSS)2 2 2 2
United Nations Forum on Sustainability Standards (UNFSS)
Objective:
Effective forum for policy-makers to better understand voluntary
sustainability standards (VSS) and be able to utilize VSSs as potential tools
to support their own sustainable development strategies and goals. 2

3. What are Voluntary Sustainability Standards (VSS)?3 3
What are Voluntary Sustainability Standards (VSS)?
Mainly developed by private bodies (commercial and non-commercial).
Typically cover health, safety, environmental, economic, social and animal welfare issues.
“Credence characteristics”, i.e. attributes not verifiable through examination of the product (Production and Processing Methods- PPMs).
Most prominent in the food and agricultural sector (also significant in textiles/clothing, toys, timber products, cosmetics, bio-fuels, electronic goods).
Carbon & water foot-printing and energy and material/resource efficiency standards are emerging as a new frontier.
What are VSS?
Focus in general is on voluntary private standards which are developed by commercial and non-commercial private bodies and typically cover health, safety, environmental, social and animal welfare issues- with many addressing economic issues as well.
These are credence characteristics, attributes which can not be seen or measured on the end product- often related to production and processing methods.
These are not legally mandatory, but because of their size are becoming de facto market entry requirements
Most prominent in the the food and agriculture sector, but expanding to others including Carbon and water foot-printing.
But also significant in Textiles and clothing, footwear, toys, timber/Timber products, natural cosmetics, liquid bio-fuels and electrical and electronic goods
Also standards for energy and material/resource efficiency are are supplementing other market-based and fiscal instruments.

4. 4 4 4 4
Importance of VSS 4
VSS are of key importance for market entry and sustainable development.
Real developmental opportunities – strong market dynamics (including growing private sector interest and participation)
Unless pro-actively addressed, VSS can potentially become a market entry hurdle and a serious challenge in particular for small-scale producers.
Have raised a lot of interest because of their market growth. Rapid exponential, annual growth.
This has created real opportunities, but can also be a serious challenge for many producers (i.e. marginalization of small-scale producers and considerable compliance costs due to multiplicity of standards and their lack of interoperability as well as lack of credible information).

5. Importance of VSS (cont’d)5 5 5 5
Importance of VSS (cont’d) 5
Voluntary (i.e. private) Sustainability Standards (VSS) are often viewed as a technicality, when VSS are tools that can be used to:
Internalize environmental and social costs.
Advance sustainable production and consumption methods (including opportunities for energy/ material/ resource efficiency and cost savings).
Promote competitiveness in the growing and lucrative “sustainability” markets.

6. Market Share of VSS-certified Bananas & Coffee6 6 6 6 6
Market Share of VSS-certified Bananas & Coffee
One of key issues discussed is market growth.
A recent UN study on food security also highlights this importance- growth rates for the exports of certified products from two sectors (coffee and bananas) from 2/3% respectively in 2002 to 9 and 15% in 8 years, with a projected market share of 2015 of 18 and 22%
Source: Food and Agriculture: The Future of Sustainability, UN Department of Economic and Social Affairs, D. Giovannucci, S. Scheer et al., NYC, 2012: 17.

7. Growth of VSS Recent Average Annual Growth Rate of Key VSS Markets:7 7 7 7
Growth of VSS 7
Recent Average Annual Growth Rate of Key VSS Markets:
Global US
High-value
5-10 %
10+ %
Organic
10-15 %
15-20 %
Fair Trade
35 %
40 %
Utz Certified
30 % --
Rainforest
105 %
120 %
Conventional Food Markets
2-4 %
3-5%
Have raised a lot of interest because of their market growth. Rapid exponential, annual growth.
This has created real opportunities, but can also be a serious challenge for many producers (i.e. marginalization of small-scale producers and considerable compliance costs due to multiplicity of standards and their lack of interoperability as well as lack of credible information).
Source: State of Sustainability Initiatives, 2011

8. Geographical distribution of sustainable coffee certification, 2011 (mt)
If we look at the coffee sector comparatively it was 20% in 2011

9. Committee On Sustainability Assessment
Impact Assessment Tools to measure the costs and benefits of implementing sustainable certification programs
Committee On Sustainability Assessment COSA

10. Economic Social Environment Farmer Livelihoods Risk & Resilience
Competitiveness
Management
Organizational
Economic
Health & Safety
Working Conditions
Education & Training
Basic Rights & Equity
Inclusive Value Chains
Social
Resource Use
Waste
Soil Conservation
Biodiversity
Climate Change
Environment
Committee On Sustainability Assessment COSA

11. Key points: Certifications, on average, outperform conventional but not consistently and not in all categories.
( ) data, multi countries, both coffee and cocoa
Sample: 9 countries, over 4,000 farms, 2 crops (coffee/cocoa) with control groups ( )
Committee On Sustainability Assessment COSA

12. Benefits and Costs of VSS12 12 12 12
Benefits and Costs of VSS 12
Benefits of VSS use may arise at different levels:
Enterprise level
Sector level
National level
International level
Costs and benefits might arise at different points and levels (i.e. those bearing costs might not necessarily earn many of the benefits). Thus, governmental task to even out interests. 12

13. Rational for Creating UNFSS13 13
Rational for Creating UNFSS
VSS as means to Sustainable Development, not as ends in themselves.
Contextualize VSS into the macro-economic development perspective (i.e. not only market access and market shares agenda).
UNFSS should focus on public interest & public goods related to VSS.
VSS need to be recognized as strategic policy issue (mitigating economic, food, climate and water crises).
Understood within overall life cycle of products and related services (looking at avoidance, minimization and management of ‘real’ risks).
Also of increasing importance for South-South trade..
VSS represent a new meta-governance system for international supply chains, largely outside WTO rules.
VSS as a tool, a means to sustainable development- not as an end.
Contectualize in the macro-economic development perspective. 13 13

14. Rational for Creating UNFSS (cont’d)14 14
Rational for Creating UNFSS (cont’d)
What is important to address is that VSS are scrutinized as:
proportionate to the (real) risk they claim to address;
scientifically-based;
that the burden of compliance is distributed fairly; and
VSS should not undermine or weaken rules of the WTO’s TBT (Technical Barriers to Trade) and SPS (Sanitary and Phytosanitary) agreements.
VSS must be examined: proportionate to real risk,
Scientifically based
Burdence of compliance shared along the entire supplychain fairly.
Should not undermine nor weaken the TBT and SPS agreements 14

15. 15 15
UNFSS Added Value
An unbiased and credible policy dialogue that guides and benefits from analytical, empirical and capacity-building activities.
Structured to promote “ownership” by developing countries and assure the “demand-driven nature” of UNFSS activities.
The only inter-governmental (and multi-stakeholder) forum that deals with generic and strategic issues of VSS in a consistent and pro-active way.
Capitalizes on the strengths and specialization of each of the five UN organizations that partner on UNFSS.
Better coordination of activities among UN partner organizations.
Unbiased and credible policy forum
Ownership by developing countries- demand driven nature
Only inter-governmental and multi-stakeholder forum that addresses generic and strategic issues of VSS in a consistent and proactive way. 15

16. UNFSS Structure: Members of the UNFSS 16 16 16 16 Structure:
The Forum will hold annual meetings (& issue specific workshops). Members primarily developing country decision makers. Led by the steering committee of 5 UN bodies and guided by a high-level advisory panel of experts (within these different categories and from diverse geographic locations). The 5 UN bodies are all actively working on VSS  not a new forum, but rooted in existing mandates and activities (thereby pooling resources, synchronising efforts and assuring policy coherence, coordination and collaboration among UN agencies and key stakeholder groups).
Analysis of Key issues will be provided by the steering committee, key partners, and related programs.
The Forum has a multi-stakeholder character and the UN is a neutral and credible convener of both governments, the business community and civil society and has the mandate and objective to promote sustainable development.
Members of the UNFSS 16

17. Activities of UNFSS (set-up)17
Activities of UNFSS (set-up)
High-level advisory board (multi-stakeholder)
Briefing sessions to consult and partner with stakeholders in building UNFSS:
Several in Geneva, WTO, UNCTAD XIII
China, Thailand, Panama
Cameroon (with Inter. Cocoa Org.; June 24-27)
Kenya (TBC)
Official launch of UNFSS- March 21-22nd, 2013 Geneva at Palais des Nations
Through consultation Advisory Panel prepared draft work plan which was discussed, adjusted and confirmed at UNFSS launch event:
AP- with Karin Kreider representing the standard bodies (ISEAL Members). 17

18. Preliminary Activities of UNFSS (from launch) Action areas identified18
Preliminary Activities of UNFSS (from launch)
Action areas identified
Status
Decision-making tool for policy makers on VSSs
Draft tool (IIED/TSPN), being further developed to adapt/validate at producer country level.
Flagship report on VSSs
Initial publication almost ready for dissemination (draft shared with ICCO).
Impact Assessment working group
Work with exisiting initiatives (COSA etc.), support interpretation of results for policy
Capacity building activities
Begin in pilot countries, link with exisitng initiatives- (SCAN etc).
Harmonization and equivalence working group
Working group being set-up, building on existing work (GOMA-organic standards/Global Gap).
Emerging standard initiative working group
Provide information and promote their relevance and value to Sustainable Development.
National and regional Committees linked to UNFSS
Under development and implementationBuild on briefings, link to UNFSS.
What are VSS?
Focus in general is on voluntary private standards which are developed by commercial and non-commercial private bodies and typically cover health, safety, environmental, social and animal welfare issues- with many addressing economic issues as well.
These are credence characteristics, attributes which can not be seen or measured on the end product- often related to production and processing methods.
These are not legally mandatory, but because of their size are becoming de facto market entry requirements
Most prominent in the the food and agriculture sector, but expanding to others including Carbon and water foot-printing.
But also significant in Textiles and clothing, footwear, toys, timber/Timber products, natural cosmetics, liquid bio-fuels and electrical and electronic goods
Also standards for energy and material/resource efficiency are are supplementing other market-based and fiscal instruments. 18

19. Support for the UNFSS provided by:19 19 19 19
For more information:
Website:
Support for the UNFSS provided by: 19