Approach for reporting on ecosystem services - BIP Indicators

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Sustainability Reporting Today: The Readers’ VerdictAnnex I: AcknowledgmentsAdachi Naoki, Response Ability, Inc.Ana Carolina Srbek de Araujo, Reserva Natural ValeAnnelisa Grigg, Global BalanceCamila L. Gramkow, Conservação InternacionalCarlos Eduardo Lessa BrandãoDaniela Lerda, Consultora/WCMC-UNEPEric Landen, Landen ConsultingFlorence Landsberg, WRIFranz Knecht, ConNexiS AGIvo Mulder, UNEP FIJames Griffiths, WBCSDJohn Finisdore, TNCJohn van Himbergen, Dutch Ministry of Infrastructure and the EnvironmentKurt RaminMarion Hammerl, Global Nature FundPippa Howard, Fauna & FloraRachel Jackson, ACCARichard Mattison, TrucostRobert N. Shaw, Osaka UniversityRoberto Bossi, ENIStefan Hörmann, Global Nature FundSteven de Bie, Shell NederlandSuzanne Ozment, WRIUnica36© 2011 GRI
Annex II: Reference to ecosystem services inGRI Sector SupplementsSustainability Reporting Guidelines &Food Processing Sector SupplementContentsIn this publication, Food Processing sector contenthas been integrated into the G3 Guidelines. TheDisclosures and Per<strong>for</strong>mance Indicators in the FoodProcessing Sector Supplement make up the <strong>reporting</strong>framework <strong>for</strong> all organizations active in the foodprocessing sector.Relevance <strong>for</strong> <strong>reporting</strong> on ecosystemservicesParts of the Food Processing Sector Supplement thatcould (potentially) be linked to the topic of ecosystemservices have been quoted below:SourcingSourcing has been identified by the Working Group<strong>for</strong> this Supplement and other contributors as a newissue of critical importance to the sustainability of thefood processing sector. The sector depends on primaryproduction, such as agriculture and fisheries, <strong>for</strong> itsraw materials. Obtaining raw materials directly fromprimary producers, brokers, commodity markets orsome combination of these carries inherent materialrisks (e.g. child labor, water scarcity), which can affectfood processing companies and society. Primaryproduction is often outside the direct control offood processing organizations and yet gives rise tomajor risks <strong>for</strong> this sector. It is there<strong>for</strong>e important toemphasize the need <strong>for</strong> the <strong>reporting</strong> organization toconsider sustainability throughout the organization’ssupply chain (vertically), while recognizing that itsscope <strong>for</strong> action is primarily through its direct (first tier)suppliers.In order to address the immense variety of companyinfluences on sourcing chains, any disclosure approachmust allow companies and key stakeholders to focustheir ef<strong>for</strong>ts on the most important issues in thesourcing chain by using the principle of materiality.The purpose of taking this approach is to enablethe <strong>reporting</strong> organization to identify the mostsignificant impacts that its supply chain has on society,the economy and the environment, as well as thesignificant dependences 7 on ecosystems and socialservices that may exist within its supply chain.Disclosure on Management <strong>Approach</strong>The following factors, among others, may contributeto increased material risk and could be used by the<strong>reporting</strong> organization in the materiality assessment ofits supply chain.The suppliers’ raw material is:• Produced in an area of resource constraint• Produced in a region of high conservation value• Produced in an area of social, political or economicvulnerabilityFor each identified material Aspect, the <strong>reporting</strong>organization should provide a concise disclosure ofthe sourcing management approach taken to theAspects within each category of the G3:• Economic• Environment• Labor• Human Rights• Society• Product ResponsibilityThe <strong>reporting</strong> organization should also providea disclosure of the sourcing strategy taken to thefollowing sector-specific Sourcing Aspects:• Protecting Natural Resources• Minimizing Toxicity• Fair Trade• Fair Compensation <strong>for</strong> Labor• Traceability• Genetically Modified Organisms (GMO 8 )• Animal Welfare• Biofuels7An example of dependence on an ecosystem service is where a keysupplier to the <strong>reporting</strong> organization is dependent on a steadysupply of clean water from a water-scarce catchment. The steadyprovision of the water is a service provided by the ecosystem ofthe catchment. See the WRI Ecosystem Services review <strong>for</strong> a toolto assess dependence on ecosystem services. An example of socialdependence is when a key supplier to the <strong>reporting</strong> organizationdepends upon the availability of casual labor to operate duringpeak periods of output.8GMOs and biofuels are included as an Aspect here because they areof significant concern to some stakeholders.<strong>Approach</strong> <strong>for</strong> <strong>reporting</strong> on ecosystem services– Incorporating ecosystem services into an organization’s per<strong>for</strong>mance disclosure37GRI Research andDevelopment SeriesI Research & DevelopmentTopicsReportingPractices
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