from HIH suppliers - Rapunzel

RAPUNZEL HAND IN HAND Workshop 2012

Atelier HIH 2012 – le 13 février 2012Participants:- Bernardo Apaza, El Ceibo- John Kanjagaile, KCU- Claude Bovey, Burkinature- Gero Leson, Serendipalm + Serendipol- Robert Hardy, Serendipalm- MN Pai, Achal- José Rojas, CEPICAFE- César Montalvan, CAPEMA (sub cooperative CEPICAFE)- Paloma Subervielle, Aria Candies (process HIH products)- Leopoldo Aguiluz, Aria Candies (ess HIH products)- Rosalie Dorn, Joseph‘s daugther- Bernd Jauch, bio.inspecta (external certification body)- Joseph Wilhelm, RAPUNZEL, CEO- Andreas Wenning, RAPUNZEL, assistant of CEO- Murugiah Rajasingham, RAPUNZEL, coordinator of the Rapunzel Sri Lanka project- Barbara Altmann, RAPUNZEL, head strategic sourcing raw materials- Stefanie Colombo, RAPUNZEL, srategic sourcing raw materialsBio. Fair. RAPUNZEL

Topics- Introduction in HIH- Login for HIH suppliers on Rapunzel website- HIH Program : what is new?- HIH premium and new version premium sheet- Sustainability management systems- External certification HIH suppliers (bio.inspecta)- Frequent feedback HIH inspections- HIH FundBio. Fair. RAPUNZEL

Introduction HIH- Private program since 1992: organic + fair trade- Invitation to become HIH partner/supplier by Rapunzel- Partners are free to enter into the program and also to leave theprogram (by indicating the reasons)Further information on the HAND IN HAND program:Internet login www.rapunzel.de/hihandhttp://www.rapunzel.de/uk/rapunzel-projekte.htmlBio. Fair. RAPUNZEL

Login on Rapunzel websiteLogin for HIH suppliers: www.rapunzel.de/hih/User name: hih1992Password: 020811rapuAvailable for download:Information material on HIH(HIH criteria, HIH presentation,price and premium sheet forms etc.)and information on RapunzelBio. Fair. RAPUNZEL

HIH Program: what is new: HIH premiumMost important: traceability of the premium money!According to HIH criteria: Separate physical bank accountDiscussion :- Costs for separate bank account?- Accounting rules in the respective countries?- Tax issue: have 2 times taxes to be paid if the base price and thepremium are stated separately in the invoice?- Premium use: is it allowed to spend only for NGOs and not for thecompany itself?- Who decides on the premium use? Define committee?Bio. Fair. RAPUNZEL

HIH Program: what is new: HIH premiumSuggested handling:• Separate bank account if annual premium > 10.000 EUR• Internal separate book-keeping account if annual premium < 10.000 EURIn exceptional cases: HIH premium in main account, but has to be separatedeasilyTo do Rapunzel:→ integrate suggestions for handling of the premium in the premiumsheet and/or in the HIH criteria.→ ask all HIH suppliers how the HIH premium can be handled best (separatebank account? Separate price and premium or work with “price includes apremium of… ” in the invoice for tax reasons?)Bio. Fair. RAPUNZEL

HIH Program: new version HIH Price sheetHIH price sheet (was planned, but not discussed at the workshop dueto lack of time ):The price sheet has to be filled by the HIH supplier each year together withthe purchase contract between Rapunzel and the HIH supplierfor the last fiscal year / harvest until the current date.The HIH price sheet form can be downloaded from the internet login on theRapunzel website www.rapunzel.de/hih- It shows prices and wages paid at HIH supplier level / producer level- The indications in the price sheet are checked at the biannual HIHinspection by the HIH inspectorBio. Fair. RAPUNZEL

HIH Program: new version HIH Price sheetBio. Fair. RAPUNZEL

HIH Program: what is new: Sustainability Management SystemsWhat is meant with it? What has to be done?Bio. Fair. RAPUNZEL

HIH Program: what is new: Sustainability Management SystemsWhat is meant with it? What has to be done?The existing sustainability system of the organization regarding social,economic and environmental aspects and the challenges have to be definedby each HIH supplier individually (Rapunzel does not need to know in detail).Responsibilities in the supply chain: Rapunzel towards HIH supplier, HIHsupplier towards producer.The HIH supplier elaborates a business development plan with budgets andtime lines which tackles these challenges. The implementation is reviewed byan internal independent committee of the HIH supplier.Bio. Fair. RAPUNZEL

HIH Program: what is new: Sustainability Management SystemsSee the work sheet attached which might be useful for your internaldefinition of the sustainability management system at yourorganization (existing or to be set up).It has as well been filled by Rapunzel as an example and presented atthe workshop (see next slide).Bio. Fair. RAPUNZEL

Sustainability Management Systems – Example of RapunzelHIH criteria - Sustainability Management - Measures etc.Social Economic Ecologic Challenges SupportWhere is this topic located?Department?Management / Strategic Sourcing Management ManagementWho is responsible?Person(s))?Directors / Strategic Sourcing /Workers CouncilFinancial department /ExternalauditorEnvironmental working group (head: Responsibl e forTechnics); result: annual environmental reportDifferent offers for employees; Permanent control, monthly reportoperational standards and agreementsApproach?Documentation?internal, externalExternal HIH inspection /Betriebsvereinbarung (internal)Audit report (external)Working group (meets each 2months), meeting minutes, annualreportAnnual environmental report(external) ; IFS (internal)Communication?internal, externalmore internal, external just ingeneralmore internal / external just ingeneralmore internal / external more ingeneralWhat is done concretelyBio. Fair. RAPUNZEL

HIH Program: what is new: Sustainability Management SystemsConcrete projects of the HIH suppliers which target the implementation ofthe sustainability management system / which work on removing individualweak points, e.g.- training courses- environmental and social projects etc.-> Might be supported through the HIH Fund!Please contact us (Barbara Altmann / Stefanie Colombo) in advance if youplan to submit a project proposal to the HIH Fund.The implementation of the sustainability management system of the HIHsuppliers will be checked at the biennial HIH inspection. Guidance will be providedfor the auditor what has to be checked regarding the sustainability managementsystem at the HIH inspection (training of the auditors in April 2012)Bio. Fair. RAPUNZEL

External certification of the HIH suppliers – presented by Bernd Jauch- The external certification is done by bio.inspecta (Bernd Jauch) sinceNovember 2011 according to the new HIH criteria- The procedure for the HIH suppliers remains the same:1. HIH inspections are:• planned by Rapunzel• combined wherever possible with IMO organic or FFLinspections or FLO-Cert Fairtrade inspections• Realized by IMO inspectors, FLO Cert inspectors or independentauditorsBio. Fair. RAPUNZEL

External certification of the HIH suppliers – presented by Bernd Jauch2. The auditor sends the HIH inspection report to Rapunzel3. Rapunzel forwards the report to bio.inspecta4. Bio.inspecta decides about the certification5. Rapunzel informs the HIH supplier about the inspection resultsand the certification decision.6. Rapunzel keeps in touch with the HIH supplier regardingcorrective actions taken within the due time frameBio. Fair. RAPUNZEL

Feedback from Rapunzel:Frequent feedback from HIH inspection- Knowledge on HIH: inform members and workers on basic issues;HIH 1 sheet (draft was shown at the workshop) can be useful→ will be put in the login www.rapunzel.de/hihat Rapunzel website- Living wage: is difficult to define.→ Approach:- Cost of production and cost of living as average/idea for theregion/partner, can be verified by the inspector.- Most important/focus: min wages must be met. Everything elsecan be set as a goal.- Goal: Make workers and members strong to be able to negotiate.Bio. Fair. RAPUNZEL

Frequent feedback from HIH inspectionsFeedback from HIH suppliers:- Communication between inspection body and Rapunzel has to beimproved regarding inspection planning and instruction of the auditor→ in progress: inspection planning of all pending inspections at thebeginning of each year with FLO Cert and IMO, annual training for allinspectors carrying out HIH inspections- Training of the inspector (especially regarding sustainability criterion,premium). Useful: presentation on HIH criteria.→ Annual training for the inspectors is planned. Presentation on HIH criteriaand instructions regarding the realization of the inspections in preparation.Bio. Fair. RAPUNZEL

Frequent feedback from HIH inspectionsFeedback from HIH suppliers:- Some inspectors are intimidating the organizations→ Please let us know immediately when this occurs- The suppliers need time to discuss the issues after the inspectionreport is given to the project from the inspector, then they sign.→ From now on identified non conformities during the inspection shall bediscussed in the closing meeting, corrective actions shall be proposed by theHIH supplier itself already in the closing meeting.Bio. Fair. RAPUNZEL

Frequent feedback from HIH inspections- Grouping of standards possible / combined inspections? 1 standardfor all certifications?→ Combined inspections are a challenge for an inspector, but are possibleand striven for by Rapunzel (combination with FLO or IMO organic / FFLaudit). 1 standard for all certifications will not (yet) be possible, thestandard setters won’t agree.- Positive feedback on HIH: HIH is not goal oriented, but processoriented and more flexibleThank youBio. Fair. RAPUNZEL

HIH FundSee the presentation on the internet login at the Rapunzel website(www.rapunzel.de/hih ) about the HIH partner program and the HIH FundList of projects supported by the Fund (in English):http://www.rapunzel.de/uk/fonds2010-hand-in-hand.htmlBio. Fair. RAPUNZEL

Pending issues:Please fill and submit the premium sheet and price sheet once signing thepurchase contract for crop 2012.Forms see internet login (www.rapunzel.de/hih ) at the Rapunzel website- Premium sheet: please fill- The planned use of the HIH premium for crop 2012 (according to thecontract value) and- The report on the use of the HIH premium for the last crop- Price sheet: please fill it for the last fiscal year until the current dateSelf assessment 2012: if not yet sent, please fill and send it!Bio. Fair. RAPUNZEL

Pending issues:In case of questions or need of assistance regarding premium and pricesheet (or any other question concerning HIH), please do not hesitate tocontact me!Stefanie Colombostefanie.colombo@rapunzel.de0049-8330-529-1259Bio. Fair. RAPUNZEL

RAPUNZEL HIH workshopThank you very much for yourparticipation!Next HIH workshop: at Biofach inNürnberg in February 2013Bio. Fair. RAPUNZEL