People

Kristina Gonzales

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Kristina assists the Global Lead in managing contract negotiations and compliance monitoring for various project teams.  

Prior to working at BSR, Kristina worked in the legal industry. She handled various bankruptcy matters throughout the state of Texas, representing both debtors and creditors in federal court. She also worked in the insurance industry and handled claims throughout the United States.  

Kristina holds a Juris Doctor from the University of Houston Law Center and a BA in Philosophy from the University of Texas. 

Blog | Thursday June 8, 2023

Seven Lessons for the Just Energy Transition

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In 2022, BSR and The B Team launched Energy for a Just Transition (EJT), a business-led collaboration that brings companies and stakeholders together to help the energy and utilities sector plan for and implement a just, fair, and inclusive transition from a carbon-intensive economy to a net-zero GHG economy by 2050. The three-year collaboration provides a forum for discussion, knowledge sharing, and action.

Throughout our first year, we have learned various lessons about the challenges and opportunities of corporate action on the just transition in the energy sector:

1. Ambition matters, but it is not enough. The companies that are part of EJT have set net-zero ambitions, and most have made explicit just transition commitments. However, moving from ambition to action on a complex issue like just transition is not easy. Business must keep up with evolving definitions and stakeholder expectations, as well as maintain transparency on objectives and new challenges. It requires a careful and honest assessment of how and where a company is best positioned to act.
   
   It also calls for buy-in from the top, which translates to the appropriate support and resource allocation for implementation across the organization and its activities. Evolving corporate incentives and culture is essential to drive the right conversations and changes required to ensure coordination across various organizational layers, the supply chain, and multiple geographies. In the year since we started EJT, we do see that just transition has been further integrated into corporate strategies.
2. A cornerstone of the just transition is engaging in social dialogue, minimizing the impact of transition on workers, and maximizing opportunities for inclusion and continued access to good jobs. Last year, the collaboration engaged with worker representatives in challenging yet constructive conversations. A key learning was that more spaces for engagement between workers and company practitioners (including human resources, workforce planning, industrial relations, and stakeholder engagement teams) are needed to improve the mutual understanding of what the challenges, expectations, and possibilities are. While these informal discussion spaces do not substitute formal engagement processes like bipartite or tripartite negotiations, they can build and enrich social dialogue outcomes when actively sought out and entered into with transparency.
3. A significant obstacle to the effective implementation of just transition at the corporate level relates to the cross-functional nature of the challenge. Just transition requires an approach that is contrary to the traditional and often siloed approach to risk and impact management and opportunity realization processes in the energy industry. A just energy transition requires collaborative and coordinated thinking that goes beyond commercial and engineering-driven solutions. Some positive signals of change are emerging. As one member said: “Thanks to the just transition, our engineers are finally starting to understand why social aspects need to be an essential part of solutions design.”
4. No company can tackle the challenge alone. Just transition is about change that needs to happen “everywhere, all at once”—and it needs true systematic coordination. Collaboration can be tricky to “unlock.” It requires trust, aligned objectives, agreement on the problem, the right mandates and resources, and a certain appetite for risk. Adhering to antitrust laws is essential but should not be an excuse to stop exploring the right space for action. Several working groups have now been established to identify possible joint action in areas such as workforce transition, the supply chain, and project development.
5. “Transition out” is different from “transition in”—but the impacts are simultaneous. The “transition out” phase involves asset closure, decommissioning, divestment, or transformation and consideration of how to manage these responsibly whilst creating job opportunities and mitigating impact on surrounding communities. The “transition in” phase requires a strong commitment to respecting human rights and addressing social impacts when moving into the renewables space—including across the value chain—even as we aim to move at the fastest possible pace. Many companies find themselves participating in multiple transitions simultaneously—a situation that some are referring to as the “transition across,” since it requires them to take a holistic approach to manage the impacts of "transitioning in" and "transitioning out.”
6. A just transition is impossible without stakeholder engagement. Stakeholders affected by the transition include workers, communities, landowners, civil society and environmental groups, human rights defenders, investors, and governments at national and local levels amongst many others. The context of transition is one that demands fast implementation. Stakeholder engagement could be perceived as a time-consuming step in project development or closure, and there is a risk that engagement becomes a tick-the-box exercise for companies. This can result in frustration or fatigue by stakeholders. But engagement should be seen as an opportunity to codesign a more sustainable transition and to create more just outcomes. It should be a space for collaboration and coordination, to ensure the processes are valuable, effective, and impactful for everyone involved.
7. Corporate action on just transition without system change will not suffice. To accelerate the just transition, we need to change incentive structures and create an enabling policy environment to align economic incentives to redirect capital toward climate mitigation, ecological restoration, and social needs and opportunities. We need to mobilize significant investment to support economic diversification. The private sector has an important role in calling for the policy changes and incentives alignments that are required to ensure a just transition—and avoiding lobbying for or funding policies that are counter to the just transition.  A level playing field and a supportive environment, created through policy and regulation, will stimulate increased corporate uptake and implementation of the just transition.

After one year of EJT, we know that much remains to be done! Energy companies can and must work collaboratively, participate in, and support initiatives that enable a worker- and community-centered transition to a net-zero economy. Get in touch if you want to learn more about how you can support your company, lead in this changing environment, and advance the just transition.

People

Elisa Estrada Holteng

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Case Studies | Wednesday June 7, 2023

Phoenix’s Human Rights Journey: Designing a Human Rights Roadmap

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Introduction

BSR worked with Phoenix Group to provide a clearer understanding of its impacts on human rights, publish its first human rights policy, and develop a roadmap to deliver an approach to respecting human rights.

Background on the Phoenix Group 

Phoenix Group is the UK’s largest long-term savings and retirement business, serving 12 million customers with a broad range of pensions, savings, and life insurance products across its consumer brands.

Phoenix’s work in supporting people during their journey to and through retirement relies on making responsible, sustainable investment decisions and driving positive change for customers, colleagues, and Phoenix’s wider community of stakeholders, including rightsholders that may be affected by Phoenix’s business activities.

In striving to be sustainability leaders, Phoenix’s strategy focuses on key issues impacting the planet, including by transitioning the business to net zero and nature positive, and people, by helping society live better, longer lives; tackling the pension savings gap; and supporting more people to have better financial futures.

The Opportunity to Act on Human Rights

Financial services companies like Phoenix invest across a wide range of asset classes, sectors, and geographies. This global and multi-sector reach means that it’s important to have a clear view on the impacts of its products, services, and business relationships on people. As a large asset owner, Phoenix is also at the top of the investment ecosystem and has an opportunity to drive change through the full investment value chain and lifecycle.  

Given that Phoenix was at a relatively early stage in its human rights journey, the group identified an opportunity to enhance its efforts on human rights. In working with BSR, Phoenix looked to leverage a combination of human rights and financial services expertise to challenge conventional thinking in the sector on human rights and gain a clearer understanding of its risk and opportunity profile against current and emerging expectations. Phoenix sought to use this as a foundation to build a strategic approach to embed human rights across the organization, including through the publication of its first human rights policy, which sets out its ambition and commitments.

BSR’s Approach

BSR worked closely with Phoenix for nine months, bringing deep human rights and financial services expertise to develop a strategic vision for Phoenix to align with the UN Guiding Principles on Business and Human Rights (UNGPs) and advance respect for human rights across its operations and value chain. This vision was informed by a global industry benchmark that assessed Phoenix and several peer institutions against the UNGPs and a landscape analysis of current drivers on human rights within financial services. BSR also conducted an in-depth assessment of Phoenix’s current practices and a saliency scan of its human rights issues. Through this process, BSR interviewed and engaged with numerous internal and external stakeholders on human rights issues associated with Phoenix’s operations and value chain and developed fit-for-purpose workshops at the highest levels of the business to raise awareness and build capacity around human rights.

BSR’s tailored approach led to a new human rights policy and a tailored roadmap with recommendations and timelines for implementation across Phoenix’s roles as an employer, procurer, investor, and customer service provider. The roadmap provides concrete steps for Phoenix to align more holistically and comprehensively with the UNGPs and meet growing regulatory and stakeholder expectations today and in the future.

Impact

Following completion of the project, Phoenix published its first human rights policy, raising the bar for other organizations in the financial sector. With BSR’s support, Phoenix has increased its capacity within the organization, both at operational and senior leadership levels, to understand its role in respecting human rights. This was achieved through collaboration with a range of stakeholders within the organization—from colleagues working in sustainable investment and risk to the legal, public policy, and data protection teams.

BSR’s support included the delivery of 11 education sessions and workshops for various Phoenix team members, executives, and board members. In addition, the project provided Phoenix with a roadmap of the activities needed to deliver a holistic approach to human rights across its roles as an employer, procurer, investor, and customer service provider.

“We are delighted by the progress we’ve made in advancing our work on human rights within Phoenix. The support provided by BSR has been invaluable and has set Phoenix up for success to deliver real change on this vital issue.”

James Wilde, Chief Sustainability Officer, Phoenix

Conclusion

Against a backdrop of increasing stakeholder expectations and rapidly emerging regulations, such as the Sustainable Finance Disclosure Regulation, Corporate Sustainability Due Diligence Directive, and proposals to strengthen the UK Modern Slavery Act, it is increasingly important for financial services companies to understand and address their human rights risks and impacts. Organizations like Phoenix that have taken critical steps on their human rights journey will be better prepared to navigate this shifting landscape—with the tools in place to manage risks and identify opportunities while putting people at the center of the business. While advancing respect for human rights does not happen overnight, BSR believes that these steps lay the foundation for progress, leadership, and innovation on best practices in the financial services sector, and ultimately advance and scale respect for human rights across the economy.   

This case study was written by Kindra Mohr. If your team is also interested in human rights support—from policy development to a step-by-step human rights roadmap—please reach out to us to learn more.

Blog | Tuesday June 6, 2023

Respecting LGBTIQ+ Rights in Turbulent Times

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For many around the world, June marks Pride Month, an opportunity to remember the struggles faced by the LGBTIQ+ community as well as to recognize progress in advancing equality for LGBTIQ+ individuals. We have seen important milestones in the past decade: marriage equality is now in law in over 30 countries, many more have the recognition of same-sex couples in law, and more countries are adopting progressive legislation recognizing the rights of trans and non-binary people. 

At the same time, there is an increasing amount of legislation that targets LGBTIQ+ individuals. In the last few weeks, the Parliament of Uganda adopted the Anti-Homosexuality Act, mandating the death penalty for “serial offenders” against the law and 20-year sentences for “promoting” homosexuality. In Turkey, newly reelected President Erdogan declared that the country was “against LGBT,” prompting fears that the government may seek to shut down LGBTIQ+ organizations; and in the US, several states have adopted—or are considering—legislation restricting access to gender-affirming care for trans individuals.

Many companies recognize Pride Month and highlight their own efforts to promote LGBTIQ+ inclusion within the workplace and support for the community more broadly. Scrutiny of these efforts has increased, however, with growing concerns that this could amount to little more than “rainbow washing.” Simply adopting a rainbow version of a logo on social media or launching temporary Pride-themed products is no longer seen as sufficient in a world where LGBTIQ+ individuals face persecution, harassment, and worse.

Activists, customers, employees, and investors expect companies who outwardly support the LGBTIQ+ community to make substantive, meaningful changes and decisions that genuinely advance LGBTIQ+ equality, even when this might affect their bottom line. In the US, survey data (from Morning Consult/BSR) found that Gen Z was nearly twice as likely as older generations of Gen Xers and Boomers to say laws and policies protecting LGBTIQ+ people are the most important issue they consider when thinking about a decision to move to another state. Companies could face long-term impacts to their workforce if they stay quiet when their support could advance civil rights in the LGBTIQ+ community.

In this context, companies are expected to ensure the health and well-being of their workers in countries where being LGBTIQ+ can put them at risk of criminalization or discrimination. Companies are also expected to take a more public stance in support of LGBTIQ+ rights, especially by younger people, who increasingly make decisions about where to work based on a company’s approach to LGBTIQ+ equality. The criticism of companies who advertised in Qatar during the World Cup, for example, shows how companies who stay silent when LGBTIQ+ rights are undermined face public criticism.

Key Business Priorities

Beyond Pride Month, there are several actions business can take to create lasting impact for LGBTIQ+ individuals worldwide:

1. Regardless of national legislation, ensure full equity in your policies and benefit schemes, and work with LGBTIQ+ staff groups and external organizations to identify gaps. This could include ensuring that partnership benefits (such as extended health coverage) are available for same-sex couples, that family leave policies equally benefit partners and children of LGBTIQ+ individuals, and that policies relating to gender account for the needs of trans people (for example, access to inclusive healthcare).
2. Collaborate with other companies to identify common challenges via BSR’s Collaborative Initiative Partnership on Global LGBTIQ+ Equality (PGLE). This network of companies and civil society organizations works together to support businesses to respect the rights of LGBTIQ+ people, sharing best practices on issue like trans-inclusive benefits and calling out the harms to business of anti-LGBTIQ+ legislation.
3. Encourage internal support networks for LGBTIQ+ employees, which can act both as a mechanism for support as well as help raise awareness within the company of LGBTIQ+ issues. Whether through such a network or otherwise, find a way for any issues or concerns by LGBTIQ+ individuals to be raised in a safe and supportive way. Networks for allies of LGBTIQ+ people can also help show that the staff are inclusive and welcoming.
4. Analyze publicly available resources like ILGA’s Database to understand the local context of countries where your company operates and the particular challenges that LGBTIQ+ people face, such as a lack of legal recognition of same-sex relationships or an absence of anti-discrimination legislation protecting LGBTIQ+ people in the workplace. Use this information to inform internal workplace practices and ways to meaningfully and responsibly engage in public policy discussions.
5. Connect with “on-the-ground” LGBTIQ+ organizations in countries where the company operates. Most countries around the world have local organizations fighting for LGBTIQ+ equality and building relationships and other forms of support for these groups can help advance progress, as well as help you gain further insight into the situation for LGBTIQ+ individuals in that country.
6. Engage privately and publicly in debates around national laws and policies, whether in force or under consideration, which would expand or restrict LGBTIQ+ rights. Many business-focused coalitions engage on public policies collectively, such as the Human Rights Campaign’s Business Coalition for the Equality Act in the US.
7. Become a supporter of the UN Standards of Conduct for Business Tackling Discrimination against LGBTIQ+ People. As a follow up step, use the LGBTIQ+ Standards Gap Analysis Tool to learn where gaps exist and what steps you can take to fully meet the expectations of the UN Standards. For some companies, gaps might exist in their internal protections for LGBTIQ+ employees, such as policies or benefits which are not fully inclusive of the needs of LGBTIQ+ individuals. For other companies, gaps might exist in their due diligence processes when considering potential risks to LGBTIQ+ people connected to their products and services.

Pride Month in 2023 takes place at a turbulent time for LGBTIQ+ people, with progress toward equality in some parts of the world and regression in others. At the same time—and perhaps because of the regression seen in many countries—stakeholders are setting ever-higher expectations of companies to “walk the walk” and not just “talk the talk” when they commit to LGBTIQ+ equality. The suggested actions listed above are just some of the ways that companies can make real progress and demonstrate meaningful actions. If you would like to find out more about how to advance LGBTIQ+ equality, contact the PGLE team.

Insights+ | Thursday June 1, 2023

How New Regulations Are a Game-Changer in Just and Sustainable Business

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Blog | Thursday May 25, 2023

Land Value at Risk

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In The Risk to Insurance, we discussed how climate change has made insurance industry modeling practices far more difficult to rely upon. Now, we dive into the climate justice risks surrounding the insurance industry’s ability to protect land-based assets and livelihoods, and we urge business to seek opportunities across their value chains to build inclusive resilience through risk mitigation and adaptation.

Climate impacts are raising the specter of uninsurability, giving new prominence to the role of insurance in driving climate mitigation. In 2022, the world saw an estimated US$313 billion global economic loss due to natural disasters, thanks in large part to historic and persistent climate change events. From flooding in Pakistan that displaced 7 million people to droughts in Europe, countries around the globe saw the impacts of climate events on their assets, of which only US$132 billion was covered by insurance.

Those most vulnerable to climate impacts are severely underserved by insurance options, exposing their assets, communities, and livelihoods to great risk. The insurance penetration rate is below 3 percent in Africa—one of the most vulnerable continents to climate change. Here, an increase in catastrophic events—from South African floods to Algerian wildfires—brings both endemic poverty and high exposure of key economic sectors, such as food and agriculture, to climate risk. The IPCC report projects reductions in yield could reach 50 percent by 2020, but small-scale farmers face a dearth of low-income insurance options.

In the US, climate risk has reduced insurance options across the board: hurricanes in Florida have seen large providers leave the state, while rampant fraud has pushed up home insurance premiums to the highest in the nation. Laurie Schoeman, Director of Climate and Sustainability at Enterprise Community Investment, sounds the alarm:

“When carriers step out, there’s less variety and the prices go up. You get stranded assets where households, families, and communities lose their economic legacy—and for low-income communities that’s an extreme impact.”

This could lead to an avalanche of economic displacement: communities lose residents, businesses, and livelihoods—and with them the tax benefits that are passed onto schools, services, and infrastructure. Meanwhile, more insurable locations can come under strain with the influx of those forced to relocate—that is, climate refugees.

This risk is further compounded by the need for reinsurance, which is when an insurance company purchases insurance to protect itself from the risk of loss. As more insurance companies struggle, the availability of reinsurance for those companies is also reduced as fewer organizations are willing to risk reinsuring languishing entities. AI adoption across the insurance industry could help, improving risk analytics to reduce costs and increase the capacity of reinsurance.

Cat Bonds are rising in response: these high-yield debt instruments are designed to raise money for insurance issuers, releasing money from the bond only in the event of a natural disaster.

A Three-Fold Solution

Several programs have been created to better protect homeowners and developing countries from catastrophic weather events caused by climate change. The Caribbean Catastrophe Risk Insurance Facility Segregated Portfolio Company (CCRIF) utilizes insurance-linked securities (ILS) to create a multi-country risk pool that acts as an insurer for many Caribbean countries in the event of any catastrophic weather event. Payouts have included stabilizing drinking water plants; repairing critical infrastructure such as roads, bridges, and schools as well as homes; and support for the agricultural sector. However, programs like these are remedial, rather than preventative, and rely heavily on the handouts of developed countries.

The perils require a three-fold approach to mitigating and managing the risks, combining a push for secure land tenure, innovative insurance options that incorporate mitigation, and business leadership.

Secure land tenure is widely recognized as a key to climate change mitigation and adaptation. It ensures local landowners can invest in land-based solutions from carbon sequestration to flood management, improving their resilience to climate impacts and thereby their insurability, protecting both frontline communities and their livelihoods. Tenure also enables investment in long-term solutions to protect land in critical geographies from degradation. Businesses and insurers can join in advocacy and action to respect land rights and extend secure land tenure—as a foundation for pursuing insurance solutions and risk mitigation strategies. For instance, Coca-Cola and Illovo Sugar Africa have joined with communities and traditional leadership to support the development of improved land registration systems in Malawi to support smallholder farmers in sugar supply chains.

Effective insurance options to support resilient communities need to be affordable, accessible, and designed to promote and enable mitigation efforts. One model is the California Earthquake Authority, which offers insurance premium discounts to homes retrofitted to better withstand earthquakes and offers support to help homeowners make changes to qualify—equivalents are needed for climate risks. A less proactive but increasingly prominent solution is parametric insurance, which insures policyholders against the occurrence of a specific event at a certain magnitude (such as a specific flood level). The Munich Climate Insurance Initiative advocates for solutions that combine parametric insurance and climate mitigation support with disaster risk financing strategies, including gender-sensitive approaches, and encourages collaboration between social and climate protections. Risk reductions bring a moral hazard, though: they might incentivize rebuilding only to expose communities to chronic and growing risk, where in fact an equitable and inclusive approach to relocation is required. Businesses have a responsibility to engage communities in their value chain in co-creating long-term transition plans.

Citizens are exposed to both direct climate impacts for land and property as well as indirect ones, such as impacts on energy costs. Uruguay has adopted climate insurance to protect consumers from electricity rate hikes if its hydraulic power supply is hit by drought, causing it to fall back on expensive fossil fuels. In the long term, this also protects the economy while it seeks to scale renewables.

While states are wise to explore protections, global executive leadership is also needed to help engage, guide, and protect both industry and citizens. As concerns grow around land-based insurance and its potential to impact homeowners, businesses, and land-based livelihoods, it is important that business step up in these ways:

• Identify at-risk communities in their value chains, particularly those dependent on land-based livelihoods such as food and agriculture.
• Understand the needs of at-risk communities and co-create solutions with them to promote land tenure.
• Advocate for insurance discounts for those who actively mitigate against extreme climate change events.
• Advocate for insurance, mitigation, and transition options for those unprotected by national programs.
• Advocate for federal laws on disclosures for land transactions in high climate risk areas for floods, fires, hurricanes, and drought, ensuring that buyers are informed and acknowledge the risks.

Blog | Wednesday May 24, 2023

Canada’s Modern Slavery Legislation: Key Recommendations for Business

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On May 11, 2023, Canada became the latest country to adopt legislation targeting modern slavery across corporate supply chains, following in the steps of the UK and Australia. The S-211 bill, “Fighting Against Forced Labor and Child Labor in Supply Chains Act,” which will enter into force in January 2024, will require companies to disclose measures to prevent and address violations linked to any step of the production, distribution, and import of goods within and into Canada.

Key Provisions

The Canadian Act requires companies to publish an annual report, of which the first is due before May 31, 2024. The Act applies to a similar scope of companies as the UK and Australian Acts, with general requirements for the company to have connections to Canada and establishing thresholds related to revenue and the number of employees.

Companies will have to provide information on corporate policies and due diligence related to forced labor and child labor, an assessment of risks within the business and its supply chain, and measures taken to remediate violations. The new Act requires companies to report on efforts to remediate the potential impacts on income to the most vulnerable families due to corporate action to eliminate forced labor and child labor— the first Act to consider these types of potential impacts. Finally, reporting disclosures will also need to outline the effectiveness of anti-slavery corporate policies.

Contrary to the UK and Australian Modern Slavery Acts, Canada’s S-211 bill presents the possibility of imposing pecuniary fines of up to CA$250,000 (around US$186,000) on businesses that fail to submit a report, obstruct an official in related investigations, or knowingly make a false or misleading statement. If the government determines that a particular entity is not in compliance with the Act, they may order corrective measures.

While the law has been principally criticized for not imposing victims’ compensation on a company that may have caused, contributed, or is directly linked to their exploitation, the Act expands the existing Customs Tariff to explicitly prohibit imports made with child labor, defining the term more broadly and raising the age to 18—with various caveats.

Recommendations for Business

1. Collect information for reporting. As companies are mandated to present their first modern slavery report no later than May 2024, businesses should start to collect more detailed information on their business structure, approach to modern slavery, and their risk profile—both across operations and in Canada—including specific policies and processes related to this region.
2. Strengthen monitoring and evaluation of human rights due diligence. Even though sanctions do not relate to the substance of the information disclosed, companies should expect heightened scrutiny on their reporting, especially as it relates to supply chain mapping, prevention, and due diligence for risks of forced and child labor.
3. Enhance remedy and mitigation measures. As the Act requires detailed information on the effectiveness of forced labor risk mitigation, companies have an opportunity to revise their approach to remediation as a pillar of the UNGPs. Measuring efforts also requires companies to establish KPIs tailored to evaluating anti-slavery action.
4. Engage the Board. As the statement will have to be approved by the board of directors, building internal consensus on the importance of corporate modern slavery policy is critical.

The law will expand modern slavery reporting requirements to a host of new companies and reinforce policy efforts to address modern slavery across private sector by creating a level playing field for transparency. While no single company can address the scale of today’s modern slavery, these policy developments represent an opportunity for business to demonstrate their commitment and action in addressing human rights impacts in line with the framework of the UNGPs.  

BSR’s anti-trafficking team advises business from across sectors on due diligence and management of forced labor risks. Please get in touch with any questions.

Blog | Wednesday May 17, 2023

Sustainable Coconut Partnership: Toward a Responsible and Resilient Sector

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The BSR Sustainable Coconut Partnership team discusses the recently launched Sustainable Coconut Partnership, the unique challenges facing farmers, and how it plans to scale impact in the year ahead.

Could you tell us about the Sustainable Coconut Partnership?

The Sustainable Coconut Partnership (SCP) is the global platform for coconut sustainability and is a multi-stakeholder initiative aiming to build a responsible and resilient coconut sector that solves a generational challenge of sustainability for millions of coconut farmers.

Working across all coconut products on a global scale, SCP unites stakeholders to drive positive impact for farmers’ livelihoods by establishing industry-wide best practices and impact programs. With around 20 active members and a community reach of more than 500 professionals, SCP is already well-positioned to establish a much-needed common approach to coconut sustainability. Our members are active on the ground in producing, processing, and sourcing coconut products, and their membership positively influences supply chain partners. SCP also welcomes members from civil society, associations, financial institutions, academia, research organizations, and governments who are change-makers in their own capacity and bring much to our joint vision.

What is your mission and strategy for impact?

SCP’s mission is to catalyze responsible coconut production and market transformation at scale by establishing industry-wide best practices and impact programs.

Both in-depth research and our members active on the ground report that industry players alone are poorly equipped to tackle the underlying sustainability issues in the coconut sector. SCP addresses the lack of linkages between public and private programs by driving transparency and collective action and develops impactful, game-changing projects in production landscapes.

One of the first milestones was to define a common language for coconut sustainability in the Sustainable Coconut Charter, which was developed with over 100 organizations worldwide. We can operationalize the coconut charter’s goals if impact projects adopt these guiding principles so that they become industry-wide, scalable, and replicable best practices, thus inspiring farmers and new entrepreneurs to adopt sustainability principles. Establishing the right structure and strategy to increase investments and secure success has been a true test of SCP’s ability to work through divides, unite stakeholders, and change the narrative to ultimately accelerate positive impact across the supply chain. 

What are the key challenges when addressing issues such as farmers' livelihoods? How can SCP help?

It all starts with farmers. Currently, they are not reaping the benefits of the product that they grow. Ranked among the world's poorest, most smallholder farmers that are dependent on coconut are trapped in a vicious circle of poverty, unable to invest in their farms. SCP intends to solve this once-in-a-generation challenge and support the livelihoods of millions of farmers.

More than half of the world’s coconut trees are becoming senile, resulting in lower yields and a daunting replanting phase. This is driving new generations to leave farms, rather than start in these conditions with limited resources after already observing their elders struggle to make a living income. Ironically, despite these challenges, demand is currently outpacing supply as consumers seek sustainably sourced coconut.

Although a growing body of evidence shows coconut plantations can support farmers while benefiting the environment as exceptional carbon sinks, this requires the right investment. SCP aims to address this challenge in a field in which more than 95 percent of coconut plantations belong to smallholder farmers, mostly unorganized.  

One of our flagship initiatives, the Impact Project Accelerator, exemplifies SCP’s impact focus. The Accelerator provides dedicated support and expert advice to impact projects through their design, recruitment, and funding phases, which fills an identified resource gap among individual member companies and addresses a current lack of connection between public and private programs. Members can suggest projects for consideration and receive guidance on developing credible products that are accessible to upstream producers, buyers, and investors.

So, what’s going to be keeping you busy in the coming months?

We’re already very busy! After establishing the organization and defining an ambitious scope of work with our members, we are now starting to drive change at scale. SCP is focused on supporting members to find their partners, public and private, to accelerate impact projects while upholding the ambition and principles of the Sustainable Coconut Charter.

In the next months, look out for SCP’s revision of the Sustainable Coconut Charter, the first cohort of projects from the Impact Project Accelerator, new information on regenerative agriculture and protection of the environment, and our flagship roundtable event in November in Indonesia, where we will be announcing exciting new partnerships.

We invite organizations that have direct involvement in coconut supply chains, as well as civil society organizations, associations, trade bodies, governmental organizations, and other players indirectly involved in the coconut industry, to join SCP. For more information, please contact us.

Support for SCP comes from a multi-year program between BSR and the Swedish International Development Cooperation Agency (Sida) to promote business-led multi-stakeholder collaboration.

The creation of the SCP steering committee and partnership has been facilitated by The Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH as part of a development partnership on sustainable coconut (oil) production under the develoPPP program. As part of this, GIZ will furthermore continue to support the organization of the Roundtable meetings.

People

Grégory Bardies

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