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VOLUNTARY ADOPTION OF SUSTAINABLE
STANDARDS
PROSPECT
Promotion of Sustainable and Clean Rattan Production
Haikou, China
Ju...
2
3
A.1. Importance of the “Clean and Sustainable”
Standards
G1
h1,h2
G2 ,h1,h2,...
G3, h1, h2,...
C0
Distributors,
Wall Mart,...
A.2. How to stimulate the adoption of the
clean and sustainable standards
• Socialize the concept
• Explain the different ...
B. The Sustainable Production:
From Assesment to Adoption
6
IN 5 STAGES
START Stage 1 – Preparation
ANALYSIS Stage 2 – Ana...
Stage 3 Selection of the
Sustainability Opportunities
a. Identify and develop opportunities based on the existing (best)
p...
Process
Steam
Pengelukan
Pengemalan
Perakitan
Pengikatan
Master rangka
8
Existing (best)
practices
9
Existing (best)
practices
BUYERS’ STANDARDS: Walmart's Standards for Suppliers
• 1. Compliance with Laws
Suppliers and their designated manufacturin...
BUYERS’ STANDARDS: Walmart's Standards for Suppliers
• 7. Health and Safety
Suppliers must provide workers with a safe and...
Make a long list of standards (buyer of company…)
12
Walmart IKEA Maison du Monde … UGM Panduan
7. Health and Safety 8 WOR...
Stage 4: Selection of the Sustainability
Opportunities to adopt
Select opportunities based on
1. Long list of standards of...
Implementation of the Opportunities
for sustainable production: from easy to difficult
14
1. Options not requiring financi...
Stage 5 Implementation of the
Sustainable opportunities to adopt
15
• Audit the conditions in the factory (workshop of the...
Stage 6 Monitoring the implementation
16
Before
and
After
17
Scoring the situation
18
… and monitoring
19
C. Conclusion
20
1. Outputs of the interventions for the companies and the standards’
adoption
2. Outcome of the intervent...
The outputs of the intervention
1. For the companies:
• Immediate:
 a reflection of the companies’ sustainability standar...
Outputs of the interventions at standard level
22
Standards specific to the cy
New common (UGM?) Standards
Common Existing...
The outcomes of the intervention
The outcome of the intervention
• Economically stronger rattan companies
• More productiv...
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The Promotion of Sustainable and Clean Rattan Production

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A presentation on the promotion of sustainable and clean rattan production, with reference to the voluntary adoption of sustainable standards. Presented at the Asean Rattan Summit.

Publié dans : Environnement
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The Promotion of Sustainable and Clean Rattan Production

  1. 1. VOLUNTARY ADOPTION OF SUSTAINABLE STANDARDS PROSPECT Promotion of Sustainable and Clean Rattan Production Haikou, China June 1, 2015
  2. 2. 2
  3. 3. 3
  4. 4. A.1. Importance of the “Clean and Sustainable” Standards G1 h1,h2 G2 ,h1,h2,... G3, h1, h2,... C0 Distributors, Wall Mart, Target, But, IKEA,.. Consumers become more demanding on price and origin of the products Consumers' Associations make studies on the quality of the products and their content (Investigative) Journalism Besides producing goods, suppliers must fulfil minimum requirements for sustainable production on environment, social and working conditions when purchasing products From an earlier obligation of reaching a specific result i.e. make a certain amount of goods (products) of a certain quality, the suppliers now are also obliged to perform to the best of one's ability to reach that specific result (process). Indonesian anchor company (C) Subcontractors (G) and Homeworkers (H) Local companies have to deliver but also comply by the Indonesian law on labor and social protection 4
  5. 5. A.2. How to stimulate the adoption of the clean and sustainable standards • Socialize the concept • Explain the different steps and support them (coaching with subcontractors) • … as opposed to pressing more “regulations” and “cost” 5
  6. 6. B. The Sustainable Production: From Assesment to Adoption 6 IN 5 STAGES START Stage 1 – Preparation ANALYSIS Stage 2 – Analysis of process stages and standard used & SELECTION Stage 3 – Selection of Sustainability Opportunities IMPLEMENTATION Stage 4 – Implementing Sustainability Solutions Stage 5 – Monitoring Sustainability Solutions
  7. 7. Stage 3 Selection of the Sustainability Opportunities a. Identify and develop opportunities based on the existing (best) practices and standards, SoPs,... and new ideas from surveys / interviews b. Make long list of opportunities; Buyers’ Standards, UGM) 7
  8. 8. Process Steam Pengelukan Pengemalan Perakitan Pengikatan Master rangka 8 Existing (best) practices
  9. 9. 9 Existing (best) practices
  10. 10. BUYERS’ STANDARDS: Walmart's Standards for Suppliers • 1. Compliance with Laws Suppliers and their designated manufacturing facilities must fully comply with all applicable national and/or local laws and regulations, including, but not limited to, those related to labor, immigration, health and safety, and the environment. • 2. Voluntary Labor All labor must be voluntary. Slave, child, underage, forced, bonded, or indentured labor will not be tolerated. Suppliers shall not engage in or support trafficking in human beings. • Suppliers shall certify that they have implemented procedures to manage the materials, including all labor-related processes, incorporated into their products to ensure they comply with laws on slavery and human trafficking. Workers must be allowed to maintain control over their identity documents. • 3. Labor Hours Suppliers must provide workers with rest days and must ensure that working hours are consistent with the law and not excessive. • 4. Hiring and Employment Practices Suppliers must implement hiring practices that accurately verify workers’ age and legal right to work in the country prior to employment. All terms and conditions of employment including, but not limited to, hiring, pay, training, promotion, termination, and retirement must be based on an individual’s ability and willingness to do the job. • 5. Compensation Suppliers must compensate all workers with wages, overtime premiums, and benefits that meet or exceed legal standards or collective agreements, whichever are higher. Suppliers are encouraged to provide wages that meet local industry standards. Suppliers are encouraged to provide wages and benefits that are sufficient to meet workers’ basic needs and provide some discretionary income for workers and their families. • 6. Freedom of Association and Collective Bargaining Suppliers must respect the right of workers to choose whether to lawfully and peacefully form or join trade unions of their choosing and to bargain collectively. 10
  11. 11. BUYERS’ STANDARDS: Walmart's Standards for Suppliers • 7. Health and Safety Suppliers must provide workers with a safe and healthy work environment. Suppliers must take proactive measures to prevent workplace hazards. • 8. Dormitories and Canteen Suppliers who provide residential and dining facilities for their workers must provide safe, healthy and sanitary facilities. • 9. Environment Suppliers should ensure that every manufacturing facility complies with environmental laws, including all laws related to waste disposal, air emissions, discharges, toxic substances and hazardous waste disposal. Suppliers must validate that all input materials and components were obtained from permissible harvests consistent with international treaties and protocols in addition to local laws and regulations. • 10. Gifts and Entertainment Suppliers must not offer gifts or entertainment to Walmart associates or those working on behalf of Walmart. • 11. Conflicts of Interest Suppliers must not enter into transactions with Walmart associates that create a conflict of interest. • 12. Anti-Corruption Suppliers must not tolerate, permit, or engage in bribery, corruption, or unethical practices whether in dealings with public officials or individuals in the private sector. • 13. Financial Integrity Suppliers must keep accurate records of all matters related to their business with Walmart in accordance with standard accounting practices such as Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS). 11
  12. 12. Make a long list of standards (buyer of company…) 12 Walmart IKEA Maison du Monde … UGM Panduan 7. Health and Safety 8 WORKER HEALTH AND SAFETY Suppliers must provide workers with a safe and healthy work environment. Suppliers must take proactive measures to prevent workplace hazards. 8.1 Workplace risk assessment 8.2 Incidents and accidents 8.3 Health & safety training 8.4 Machinery and other equipment 8.5 Safety information 8.6 Safe working routines 8.7 Safety hazards 8.8 Personal protective equipment (PPE) 8.9 First aid equipment 8.10 First aid trained persons 8.11 Workplace conditions and ergonomics 8.12 Drinking water 8.13 Housekeeping and hygiene 8.14 Break areas 8.15 Alcohol and drugs 8.16 Legal compliance 9 RECRUITMENT, WORKING HOURS, WAGES AND BENEFITS 4. Hiring and Employment Practices Suppliers must implement hiring practices that accurately verify workers’ age and legal right to work in the country prior to employment. All terms and conditions of employment including, but not limited to, hiring, pay, training, promotion, termination, and retirement must be based on an individual’s ability and willingness to do the job. 5. Compensation Suppliers must compensate all workers with wages, overtime premiums, and benefits that meet or exceed legal standards or collective agreements, whichever are higher. Suppliers are encouraged to provide wages that meet local industry standards. Suppliers are encouraged to provide wages and benefits that are sufficient to meet workers’ basic needs and provide some discretionary income for workers and their families. 9.1 Reporting and inspection by authorities 9.2 Recruitment routines and recruitment agents 9.3 Employment contracts 9.4 Payrolls and attendance records 9.5 Working hours and overtime 9.6 One day off in seven 9.7 Wages 9.8 Leaves 9.9 Breaks 9.10 Benefits 8. Dormitories and canteen 10 ACCOMODATION Suppliers who provide residential and dining facilities for their workers must provide safe, healthy and sanitary facilities. 10.1 Housing conditions 10.2 Housekeeping 10.3 Safety 10.4 Legal compliance 2 Voluntary labor 11 CHILD LABOUR AND YOUNG WORKERS All labor must be voluntary. Slave, child, underage, forced, bonded, or indentured labor will not be tolerated. Suppliers shall not engage in or support trafficking in human beings. 11.1 Prevention of child labour at Supplier 11.2 Response to child labour at Supplier 11.3 Prevention of child labour at sub-Suppliers 11.4 Response to child labour at sub-Suppliers 11.5 Protection of young Workers
  13. 13. Stage 4: Selection of the Sustainability Opportunities to adopt Select opportunities based on 1. Long list of standards of buyer (and the company and the subcontractor) 2. Importance for the company (and the buyer) 3. Difficulty of implementation (financial and human investment) 4. Closely linked with productivity 13 LONG LIST OF "STANDARDS" Selected by Selected by Importance for the company Difficulty of implementation Special Attention for Productivi ty 1 Business Ethics of the Buyer Compan y Subcon Must do Should do Can do House keep Ltd Invest Large Invest Not Feasi ble
  14. 14. Implementation of the Opportunities for sustainable production: from easy to difficult 14 1. Options not requiring financial investment 2. Measures with small investment (which could be implemented with the budget of the company / subcontractor (and the leading company) 3. Measures which needs large investment and long amortizations which require more complex feasibility study 4. Measures obviously not feasible at the moment the assessment if performed
  15. 15. Stage 5 Implementation of the Sustainable opportunities to adopt 15 • Audit the conditions in the factory (workshop of the subcontractor) • Identify the weaknesses according to internationally accepted categories  Production (organization, work-post, raw material…  Environment (air, soil, noise, waste, energy…)  Safety and health (first aid, fire safety, working conditions…)  Workers rights (contract and legal documentation…) • Identify solutions (easy to difficult) and prioritize the selected interventions • Detail the implementation process (what, who does, who pays,…) • Identify the pace of implementation, pilot, training, coaching milestones • Plan the interventions
  16. 16. Stage 6 Monitoring the implementation 16
  17. 17. Before and After 17
  18. 18. Scoring the situation 18
  19. 19. … and monitoring 19
  20. 20. C. Conclusion 20 1. Outputs of the interventions for the companies and the standards’ adoption 2. Outcome of the interventions
  21. 21. The outputs of the intervention 1. For the companies: • Immediate:  a reflection of the companies’ sustainability standards  a screening of the application of the standards in-house and with the subcontractors • Longer term:  the implementation of selected sustainability standards  a better, more inclusive collaboration of the International buyer with the companies (’ subcontractors) 2. For the rattan producers’ community (association / sector) • Immediate  A better knowledge of the standards applied within the sector  The promotion of selected standards throughout the rattan producers’ community • Longer term  The adoption of a series of minimum standards by the rattan industry (UGM Panduan) 21
  22. 22. Outputs of the interventions at standard level 22 Standards specific to the cy New common (UGM?) Standards Common Existing Standards Buyers Company Subcontractor G1 h1,h2 C1 Wal mart G1 h1,h2 C2 IKEA G1 h1,h2 C3 MdM G1 h1,h2 C25 ... G1 h1,h2 C30 .... G1 h1,h2 C... ... Standards already adopted by the 30 companies New standards adopted by the 30 companies SC1 SC2 SC3 SC4 SC25 SC30 24 companies in Cirebon 4 in Solo 2 in Srbya
  23. 23. The outcomes of the intervention The outcome of the intervention • Economically stronger rattan companies • More productive subcontractors • A more cohesive and sustainable rattan sector • An Indonesian rattan industry in a better competitive position 23

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