Navigating sustainability challenges: How our tailored solutions tackle client problems
Challenge:
A financial institution investing in the agri-business sector is aware of regulations such as the EU Deforestation Regulation, EU Taxonomy, and the EU Corporate Reporting Sustainability Directive. However, they are unsure if the companies they invest in meet the regulations of their own investment criteria.
Solution:
Develop a framework of criteria from the EUDR, EU Taxonomy, the EUCRSDD, and their own investment criteria.
Review selected companies’ available information such as policies, sustainability reports and third-party reports.
Benchmark findings against the framework to indicate where criteria are fully met, partially met or not met.
Develop a matrix of best and worst performers.
Provide recommendations to move companies towards better performance.
Challenge:
A food and beverages company has identified that the raw materials for their products are sourced from areas with a high prevalence of workers' rights violations. The company has a list of criteria to address within their supplier’s human rights due diligence framework, but lacks specific indicators to measure compliance.
Solution:
Create a customised human right’s due diligence framework checklist.
Conduct supplier audits at the plantations using the new checklist.
Enhance supplier performance through training and supplier management system.
Revise the company’s sourcing policies in line with the framework.
Develop guidelines for monitoring and auditing suppliers' performance.
Publicly communicate commitment and progress in addressing this issue.
Challenge:
A supplier has offered a company cocoa certified against the supplier’s standard, not to a recognised industry scheme such as Rainforest Alliance. The company does not know if the standard meets their sourcing requirements.
Solution:
Review the supplier’s policy, procedures and governance system.
Benchmark suppliers' sourcing standards against the company’s requirements.
Conduct an on-site evaluation of the supplier’s scheme to understand if the requirements are met.
Provide recommendations on whether the supplier’s scheme meets requirements for purchasing cocoa.
Challenge
A European-based consumer product manufacturer is aiming to comply with the EU Deforestation Regulation requirements, tracing the origin of their raw materials back to the point of harvest. The company’s complex supply chains, involving thousands of independent smallholders, make meeting this traceability requirement challenging.
Solution:
Benchmark policies and systems against the EUDR requirements.
Implement due diligence system and procedures for supply chain traceability.
Centralise the traceability database.
Conduct supplier audits focusing on traceability.
Introduce incentive programmes to encourage suppliers’ compliance with traceability.
Challenge:
A US company selling products to the European Union is unsure about the impact of the European Union Deforestation Regulation.
Solution:
Conduct a training session on the EUDR, focusing on the company's specific issues.
Conduct a gap analysis to review current policies procedures, and information available.
Identify if certification is used and benchmark standards.
Develop a commodity roadmap to implement necessary procedures, evaluations and collaborations.
Challenge:
A company is required to meet its clients’ responsible sourcing criteria. The company is aware it sources from high-risk regions and is unsure whether certification covers the risks.
Solution:
Review sourcing criteria.
Conduct a high-level risk assessment.
Benchmark certifications standards to identify gaps.
Consider on-site evaluations.
Develop a corrective action plan going forward.
Challenge:
A Chinese industry association has developed guidance for sustainable natural rubber plantation management for its members. To scale up the impact and engage more companies in the supply chain on responsible natural rubber sourcing, a supply chain management standard for downstream entities is needed.
Solution:
Conduct a "panoramic analysis" of models and standards for responsible supply chain management.
Conduct stakeholder consultations to understand the effectiveness of different models.
Perform a SWOT analysis of relevant supply chain management models.
Develop Rubber Supply Chain Management standard, including stakeholder consultation.
Develop tools and conduct training to support members in adopting this standard.
Challenge:
A company is keen to understand the potential positive environmental and social impacts at the initial stages of the value chain. The company is particularly interested in how improved land use practices can contribute to climate change mitigation, biodiversity enhancement, and the improvement of other ecosystem services.
Solution:
Analysis of the sourcing area
Assessment of land use practices
Identification of current and potential environmental and social impacts
Gap analysis and feasibility studies (including Carbon projects, ecosystem restoration initiatives, carbon footprint analysis, etc.)
Challenge:
A large retailer based in Australia must comply with the Australian Illegal Logging Prohibition Act (2012), requiring companies to conduct due diligence to eliminate potential illegal timber. The company sources timber globally, including from high-risk countries.
Solution:
Conduct a gap analysis of the company’s current due diligence system against the Act.
Enhance due diligence systems and procedures, incorporating them into existing systems and all relevant business units.
Develop easily understood guidance for suppliers, including examples in various scenarios.
Conduct staff and supplier training in different regions, in multiple languages.
Provide ongoing advisory to the company with Preferred by Nature’s global network and expertise.
This document outlines Preferred by Nature's Theory of Change for achieving sustainability goals and explains our approach to driving sustainability.
This document outlines Preferred by Nature's Theory of Change for achieving sustainability goals and explains our approach to driving sustainability.
