Transcript the well-being of NZ exports in a changing climate

Making Sustainable Links:
the well-being of NZ exports in a
changing climate
Cerasela Stancu & Ann Smith
Talking and Walking Sustainability Conference, NZSSES
February 21, 2007
Content
Setting the stage
•
•
•
•
Trade-related issues
Consumer expectations - impact on exporters
Supply chain as a de facto environmental trade barrier
Climate change-related consumer concerns: new trade barriers?
Survey of NZ Food&Beverage sector
• Scope of the survey
• Key findings - environmental export requirements
• Discussion
Conclusion
NZ and international trade
• WTO framework - lowering barriers to trade
• NZ Trade and Environment Framework 2001
– Win-win-win agendas
– Environmental goods and services
– Eco-labelling
• Pursuing bilateral and regional FTAs
• China, Malaysia and ASEAN under negotiation
Uncertainty about the integration
of environmental considerations into FTAs
Trade-related issues and consumer
expectations: impact on exporters
• Sales of ethical products growing
faster than conventional
• Consumer concern/expectations
can lead to restrictions to market
access
• Interest groups use consumer
concerns to raise standards for
products e.g. food miles
• Commercial policies, more than
trade policies, put environmental
requirements on exporters
Supply chain as a de facto
environmental trade barrier
• Private sector policies – account for the majority of
environmental ‘voluntary’ requirements
• Most targeted sectors: food, electrical and electronic
equipment, textiles, timber, chemicals
Key issues: lack of truly international standards or
equivalence between standards; dynamic changes in
certification requirements
Consumer concern about climate
change: new trade barrier?
• Extreme events
• Consumer action (fuel efficient cars and appliances,
local food)
Yet, consumer information still limited
(embodied energy vs. emissions)
• Government action
• US state of Californian took to court
6 automobile makers
• Climate border tax adjustment for products
from countries with no emissions caps
• Tesco’s new environmental initiative
(carbon footprinting)
Survey of NZ F&B sector
Scope of the survey
• Over $15 billion/year export revenue
– employs 4.29% of NZ workforce
– responsible for about 5% of NZ’s energy use and emissions
• Over 300 F&B organisations contacted
• 104 responses - 30% response rate
• Goals of the survey:
– Explore current environmental practices
– Review environmental requirements in export markets
– Identify sector’s perceptions about key sustainability challenges
Survey of NZ F&B sector
Key findings (1)
• Assumption that the sector does not have an impact on
the environment
• Low concern about climate change and water
management
• 3 in 4 businesses have implemented at least one
practical environmental measure
• Only 3 in 5 businesses have joined a recognised NZ or
overseas standard/eco-labelling scheme/code of practice
Survey of NZ F&B sector
Key findings (2)
• Only 30% of businesses have procedures to ensure
compliance with overseas environmental requirements
• Many mandatory requirements are supply chain driven,
combine food safety and traceability, health,
environmental and labour conditions
• Voluntary requirements become mandatory when they
are a condition for market access i.e. FSC, MSC
Survey of NZ F&B sector
Key findings (3)
• Exporters use personal
research and customer
information to seek
information on better
environmental practices
• Lack of consensus on the
“ Clean and Green” brand
Common export requirements
77%
Mandatory labelling
73%
81%
77%
Mandatory standards or certification
68%
75%
46%
Packaging specifications
50%
42%
54%
Supplier audits undertaken by
customer
45%
38%
54%
Environmental criteria set by
customer
33%
38%
38%
Supplier questionnaires set by
customer
18%
40%
38%
Voluntary standards or certification
28%
21%
23%
Voluntary labelling
10%
15%
0%
Take-back obligations
10%
10%
Percentage of businesses
1 to 9 staff
10 to 99 staff
over 100 staff
Discussion points
• Exporters with no direct links to buyers lack access to
environmental information
• Environmental measures vs. environmental credentials/
production claims
• Life cycle thinking to determine supply chain impacts
• Low concern about climate change
Conclusion
• Environmental requirements are increasing mostly as a
results of CSR agenda, consumer pressure, fear of
climate change (peak oil).
• Need to increase capacity of the export sector to take on
practices not yet a condition for market access (EMS,
carbon management, LCA based eco-labelling)
• Increased need for the export sector to anticipate market
trends and proactively employ best available practices
(i.e. carbon management)
The Grove Mill Story