Voluntary Sustainability Standards Research Articles

Voluntary sustainability standards could significantly reduce detrimental impacts of global agriculture

Voluntary sustainability standards (VSS) are stakeholder-derived principles with measurable and enforceable criteria to promote sustainable production outcomes. While institutional commitments to use VSS to meet sustainable procurement policies have grown rapidly over the past decade, we still have relatively little understanding of the (i) direct environmental benefits of large-scale VSS adoption; (ii) potential perverse indirect impacts of adoption; and (iii) implementation pathways. Here, we illustrate and address these knowledge gaps using an ecosystem service modeling and scenario analysis of Bonsucro, the leading VSS for sugarcane. We find that global compliance with the Bonsucro environmental standards would reduce current sugarcane production area (-24%), net tonnage (-11%), irrigation water use (-65%), nutrient loading (-34%), and greenhouse gas emissions from cultivation (-51%). Under a scenario of doubled global sugarcane production, Bonsucro adoption would further limit water use and greenhouse gas emissions by preventing sugarcane expansion into water-stressed and high-carbon stock ecosystems. This outcome was achieved via expansion largely on existing agricultural lands. However, displacement of other crops could drive detrimental impacts from indirect land use. We find that over half of the potential direct environmental benefits of Bonsucro standards under the doubling scenario could be achieved by targeting adoption in just 10% of global sugarcane production areas. However, designing policy that generates the most environmentally beneficial Bonsucro adoption pathway requires a better understanding of the economic and social costs of VSS adoption. Finally, we suggest research directions to advance sustainable consumption and production.

Role of voluntary sustainability standards for sustainable business and development: a global perspective with special reference to India

The paper is an attempt to examine the pertinence of voluntary sustainability standards (VSS) as a market instrument to promote sustainability practices in business and drive sustainable development. In the recent years we have witnessed a steady growth in these sustainability standards for agricultural commodities and food products. They are mostly developed by industry consortia, NGOs, or through partnerships between them, thereby linking producers, exporters and buyers across national boundaries. The paper attempts to provide a global perspective of VSS with special reference to the Indian economy. The available literature on this topic being highly fragmented, the present paper offers to assimilate the information meaningfully to establish the business and development case of VSS to understand its need and role in value creation, synergising, accountability, competitiveness, motivation and universalisation along with defining the roles of varied stakeholders in improving VSS governance. The methodology is based on an extensive literature review of policy, research papers and reports accrued from research organisations, academic institutes and NGO's working in this domain. Lastly, the paper offers several policy implications.

Orchestration as a Form of Public Action: The EU Engagement With Voluntary Sustainability Standards

EU authorities have come to engage with transnational private standards in the domain of sustainability in forms which are different from the traditional interplay based on agency relations and incorporation by reference. This phenomenon is evident in the domain of global value chain sustainability where the employment of voluntary sustainability standards (VSS) is permitted in certain EU measures. This contribution depicts the main features of orchestration as a distinct form of public action involving transnational private regulation. It lays down the reasons underpinning public ‘use’ of forms of public authority, it highlights the potential for orchestration in publicising transnational private rules and it exposes the hidden dynamics stemming from the interplay between public and private rules. It discusses the conditions under which orchestration can enhance the effectiveness of public measures, and how orchestration can transform transnational private regimes by steering their substance and procedures.

The role of voluntary sustainability standards in governing the supply of mineral raw materials

Voluntary standards for mineral raw materials lack implementation. This calls for investigating the basis for their success and suggesting related transformation pathways. Consolidating and harmonizing voluntary standards, integrating more problem fields, and enlarging the stakeholder base promise to make standards more effective.Numerous voluntary standards for minerals have been developed as a reaction to social and environmental problems in mining. These vary considerably in their requirements and the design affecting their acceptance among stakeholders. As such, the voluntary standards play a subordinate role in sustainable finance compared with environment, social, and governance ratings; yet, they have been found to be effective for managing the supply chain of minerals and its single parts. Still, despite the heterogeneity of the voluntary standards, the goals pursued by applying them can be subsumed into the following structure: 1. solving focal sustainability issues to pave the way among global mining stakeholders to 2. a particular or 3. general common ground. This tripartite distinction is used to identify potential transformation paths to make voluntary standards even more effective, especially regarding sustainable finance and supply chain management. These components encompass harmonization and consolidation, (better) integration of (further) sustainability issues, and a broader involvement of stakeholder groups.

Public and Private Governance in Interaction: Changing Interpretations of Sovereignty in the Field of Sustainable Palm Oil

Since the 1990s, non-governmental organizations (NGOs) and businesses have gained prominence as architects of new forms of transnational governance creating Voluntary Sustainability Standards (VSS). The legitimacy and effectiveness of VSS are dependent on interactions with public authorities and regulation. While studies suggest that the (perceived) gain or loss of sovereignty by a state shapes public–private interactions, we have little understanding on how states use or interpret sovereignty in their interactions with VSS. In this paper, we explore what interpretations of sovereignty are used by states at different ends of global value chains in interactions with VSS. Based on a comparative and longitudinal study of interactions of Indonesian and Dutch state actors with the Roundtable on Sustainable Palm Oil, we conclude that states strategically use different and changing notions of sovereignty to control the policy and debate regarding sustainable palm oil. When interactions between public and private governance are coordinative in nature, notions of interdependent sovereignty are used. However, when interactions are competitive, domestic and Westphalian notions of sovereignty are used. Our results show conflicting interpretations and usages of sovereignty by different states, which might negatively impact the regulatory capacity within an issue field to address sustainability issues.

Institutional environments and the livelihood impacts of voluntary sustainability standards: A Village‐based analysis from southern Sumatra's coffee sector

Lead roasting firms are operating through Indonesia's coffee exporters to introduce voluntary sustainability standards (VSS) in an attempt to secure supply, and to simultaneously meet corporate social responsibility requirements, even as empirical studies continue to show uncertain benefits for producer livelihoods. Value chain interventions like VSS, however, are not rolled out over a blank canvas, and many contributing factors determine their overall impact on livelihoods, particularly the local institutional environment. This study assesses the extent to which variability of empirical outcomes is determined by the institutional environment, by identifying specific processes through which VSS interact with pre‐existing social, political and economic institutions to influence livelihood outcomes. These include: firm‐specific corporate strategies (including producer training); livelihood strategies of households (including access to assets); government programs; and local political economy, as manifest particularly through patronage between traders and suppliers. VSS have thereby become an additional institutional layer shaping livelihood strategies and regional development outcomes, best viewed as providing access to a new social network that may be exploited by producers. The interaction between VSS programs, livelihood strategies and pre‐existing institutional environments in a particular place often dictates the variable outcomes for producers, making attribution of impact causation to VSS enrolment problematic.

Integrating Voluntary Sustainability Standards in Trade Policy: The Case of the European Union’s GSP Scheme

Trade policy is increasingly being used as a policy instrument to pursue non-trade objectives such as environmental protection or the protection of labour rights. A key example is the European Union’s Generalised Scheme of Preferences (GSP). The current approach is being confronted with significant challenges. How these challenges can be addressed is currently subject to debate, and increased attention is turning to the role that private governance mechanisms can play in this context. This paper will look into the potential role that Voluntary Sustainability Standards (VSS) can play. The paper will analyse and assess the complementarity between VSS and EU GSP, and it contributes to the literature on interactions between private and public policy-making for sustainability. The main research question focuses on what role VSS can play in the European Union’s GSP scheme. To answer the question, the paper develops two models by which VSS can be integrated in EU GSP (a mandatory and a voluntary approach). The study is based on interviews with key experts from different stakeholder groups and an analysis of the ITC standards map database. The paper shows that the integration of VSS in EU GSP, as outlined in the two models, is confronted with several challenges. These challenges are discussed, and alternatives are explored.

Biodiversity Protection through Networks of Voluntary Sustainability Standard Organizations?

This paper explores the potential for voluntary sustainability standards (VSS) organizations to contribute to policy-making on biodiversity protection by examining their biodiversity policies, total standard compliant area, proximity to biodiversity hotspots, and the networks and partnerships they have in place that can support policy-making on biodiversity protection. The analysis undertaken is based on Social Network Analysis data, in combination with information from the International Institute for Sustainable Development (IISD) Standards and Biodiversity Review and the International Trade Centre (ITC) Standards Map on the focus and operation of VSS organizations. The significance of agriculture-focused private governance for global biodiversity policy and their relationship towards other forms of nongovernmental, governmental, and inter-governmental biodiversity policy are examined and described. We argue that, at present, a number of key agriculture-focused VSS organizations are important policy actors to address biodiversity because of their elaborate biodiversity policies, total compliant areas, and proximity to biodiversity hotspots. However, at present, most of these VSS organizations have relatively few ties with relevant governmental and inter-governmental biodiversity policymakers. The actor composition of their inter-organizational networks currently reflects a focus on nongovernmental rather than governmental organizations while substantively they focus more on development than on environmental protection issues.

Orchestration as a form of public action: The EU engagement with voluntary sustainability standards

AbstractEU authorities have come to engage with transnational private standards in the domain of sustainability in forms which are different from the traditional interplay based on agency relations and incorporation by reference. This phenomenon is evident in the domain of global value chain sustainability where the employment of voluntary sustainability standards (VSS) is permitted in certain EU measures. This contribution depicts the main features of orchestration as a distinct form of public action involving transnational private regulation. It lays down the reasons underpinning public ‘use’ of forms of public authority, it highlights the potential for orchestration in publicising transnational private rules and it exposes the hidden dynamics stemming from the interplay between public and private rules. It discusses the conditions under which orchestration can enhance the effectiveness of public measures, and how orchestration can transform transnational private regimes by steering their substance and procedures.

The Impacts of Cocoa Sustainability Initiatives in West Africa

To tackle the multiple challenges facing the cocoa sector, voluntary sustainability standards and corporate initiatives, largely focusing on farm and farmer group scale, are often implemented by public–private–civil society partnerships of stakeholders further in the value chain. This paper looks at the social, economic, and environmental effects of such initiatives, based on empirical evidence from large-scale, mixed-method studies using a suite of socioeconomic, agronomic, and environmental indicators to compare the situation of UTZ certified with non-certified farmers in 2012 and 2015 in Ghana, and 2013 and 2017 in Ivory Coast. The results show that, on average, outcomes are mixed and generally modest. However, significant cocoa productivity and income increases were experienced by certified farmers receiving a full package of services. However, the type and intensity of services has changed over time, decreasing for half of the farmers, and productivity and income increases are levelling off. These findings suggest that whilst partnerships have created new governance arrangements with an increased focus on sustainable value chains, initiatives which result in a living income and optimise productivity, whilst limiting environmental impacts, require sectoral transformation, continued partnerships, plus a range of other policy instruments to address the persistent, wicked problems in cocoa production.

Examining the interface of sustainability programmes and livelihoods in the Semendo highlands of Indonesia

Voluntary sustainability standards are used as both a means of securing coffee supply by large coffee firms and a development intervention to address rural poverty and environmental management in the Global South. Using a case‐study approach, we have examined the interface between a value‐chain sustainability programme and the livelihood trajectories of smallholder producers in upland Sumatra. Our research found the programme has had minimal impacts for coffee producers to date. The level of commitment required of producers appears incompatible with the particular way that coffee is currently embedded within local landscapes, livelihoods and poverty alleviation pathways. Various sustainability standards articulate a narrative of rural development underpinned by an assumption that agricultural modernisation is the preferred pathway out of poverty for rural households. As a result, there is some risk that sustainability programmes may be inadvertently attempting to encourage household investment in a particular kind of agriculture, which is intended to assist sustainability of supply, but is poorly aligned with prevailing processes of poverty alleviation. These observations are based on a detailed study of agrarian change among the Semendo people of South Sumatra province, where processes of rural development are far more complex than assumptions presented by mainstream sustainability standards.

Sustainability Standards: Interactions Between Private Actors, Civil Society, and Governments

New partnerships between governments, private companies, and nongovernmental organizations (NGOs) are reshaping global environmental governance. In particular, there has been a rise of voluntary sustainability standards in an attempt to manage social and environmental impacts of global supply chains. We analyze the large spectrum of interactions between private, public, and civil society actors around voluntary sustainability standards, primarily for tropical agriculture and forestry. This review uncovers a policy ecosystem dominated by a proliferation of standards that complement, substitute, or compete against each other, with coordination mechanisms beginning to arise. Contrary to widely held views, interactions between governments, NGOs, and private companies surrounding the adoption of sustainable practices are not generally antagonistic, and public and private environmental governance regimes rarely operate independently. The influence of these interactions on the effectiveness of sustainability standards needs more attention. Better understanding how private regulations interact with the policy ecosystem will help design more effective interventions.

The Voluntary Coffee Standard Index (VOCSI). Developing a Composite Index to Assess and Compare the Strength of Mainstream Voluntary Sustainability Standards in the Global Coffee Industry

Over the last years, key players in business, politics and civil society have promoted Voluntary Sustainability Standards (VSS) to shift global markets towards more sustainable value chains. In this article, we develop a new methodological approach (composite indices) to assess and compare the strength of competing voluntary sustainability standards (VSS). We apply this approach to all major VSS in global coffee production. In detail, we identify 92 regulatory topics relating to sustainability improvements in global coffee production through VSS. We weight these indicators and develop a coding system to evaluate how strongly each VSS addresses each of the 92 regulatory topics. The results show four sub-indices that compare the strength of the different VSS within the four main regulatory areas of sustainable development: (I) environmental sustainability (II), social sustainability, (III) economic sustainability and (IV) compliance enforcement. Aggregating these sub-indices build the “Voluntary Coffee Standards Index” (VOCSI) that compares the strength of VSS across the four main regulatory areas. We evaluate the robustness of the index and correlate the VOCSI with the amount of coffee certified to examine the relationship between the strengths of a standard and its proliferation.

Governance Options to Enhance Ecosystem Services in Cocoa, Soy, Tropical Timber and Palm Oil Value Chains

Dutch policies have advocated sustainable commodity value chains, which have implications for the landscapes from which these commodities originate. This study examines governance and policy options for sustainability in terms of how ecosystem services are addressed in cocoa, soy, tropical timber and palm oil value chains with Dutch links. A range of policies addressing ecosystem services were identified, from market governance (certification, payments for ecosystem services) to multi-actor platforms (roundtables) and public governance (policies and regulations). An analysis of policy narratives and interviews identified if and how ecosystem services are addressed within value chains and policies; how the concept has been incorporated into value chain governance; and which governance options are available. The Dutch government was found to take a steering but indirect role in all the cases, primarily through supporting, financing, facilitating and partnering policies. Interventions mainly from end-of-chain stakeholders located in processing and consumption countries resulted in new market governance, notably voluntary sustainability standards. These have been successful in creating awareness of some ecosystem services and bringing stakeholders together. However, they have not fully addressed all ecosystem services or stakeholders, thus failing to increase the sustainability of value chains or of the landscapes of origin. We argue that chains sourced in tropical landscapes may be governed more effectively for sustainability if voluntary, market policy tools and governance arrangements have more integrated goals that take account of sourcing landscapes and impacts along the entire value chain. Given the international nature of these commodities. These findings have significance for debates on public-private approaches to value chain and landscape governance.

Explaining New Models of Global Voluntary Regulation: What Can Organisational Studies Contribute?

AbstractGlobal governance in its myriad forms and actor constellations has decisively demonstrated the potential for rule‐making above the nation state to be liberated from the ‘iron cage’ of traditional intergovernmental forums and multilateral bureaucracy. To further investigate an increasingly complex global reality, we propose drawing on organisational theories and methods for penetrating the internal dynamics of global governance processes and outcomes. This article begins by mapping out the current use of organisational theories in global governance research. It then turns to exploring the potential for other areas of organisational theory and conceptual development to shed light on the governance dynamics and performance of voluntary sustainability standards (VSS), a significant site of transnational rule‐making and experimentation by private actors. We highlight a paradigmatic shift from ‘arms‐length’ to ‘embedded’ models of VSS monitoring and regulation, reflected in new modes of engagement and interaction between rule‐makers and rule‐takers. This new generation of embedded VSS governance is distinguishable by enhanced information provision, learning and knowledge creation. The implications of embedded governance for VSS monitoring and performance are explored with reference to the experience of the Fair Wear Foundation (FWF).

Challenges and Opportunities for the Sustainability Transition in Global Trade (Introduction)

In this special issue, we explore the challenges and opportunities arising with respect to normative goals of shifting production and international trade in agriculture towards greater sustainability. Private voluntary sustainability standards have experienced substantial growth in various global markets, reaching 40% of global coffee production, 25% of cocoa, and 15% of palm oil1. Given the rapid expansion of private standards, whether third-party certifications, corporate codes of conduct (Vermeulen 2010), or ‘newer’ regulatory approaches such as multi-stakeholder initiatives, public-private partnerships, and efforts to develop new sustainable business models, it is important to consider what such approaches offer. All of these approaches are seeking to contribute, at differing levels of ambition, towards a sustainability transition.

Dispute Settlement for Labour Provisions in EU Free Trade Agreements: Rethinking Current Approaches

While labour provisions have been inserted in a number of EU free trade agreements (FTAs), extant clauses are widely perceived as ineffective. This article argues that there is a need to rethink the dispute settlement mechanisms related to labour provisions if their effectiveness is to be increased. It proceeds in three steps. First, we look at the current state of the art of labour provisions in EU FTAs in terms of legal design and practice and argue that the current arrangements are ill-equipped to foster compliance with labour standards. Second, we explore avenues to enhance the design of FTA labour provisions by reconsidering basic elements of the dispute settlement structure. Examining US FTA labour provisions, we highlight the importance of a formal complaint mechanism, on the one hand, and the availability of economic sanctions, on the other. Based on a review of existing practice, we contend, however, that these elements alone are not sufficient to effectively enforce FTA labour provisions. We argue that for FTA labour provisions to be effective, the current state-to-state model of dispute settlement needs to be complemented by a third-party-state dimension and that, additionally, there are good reasons to consider a third party–third party dispute settlement component. We ground these reflections in experiences with already existing instruments in other areas, namely investor-state dispute settlement and voluntary sustainability standards. Thirdly, we discuss options to better connect the dispute settlement mechanisms of FTA labour provisions to other international instruments for labour standards protection with a view to creating synergies and avoiding fragmentation between the different regimes. The focus here is on the International Labour Organization’s supervisory mechanism and the framework of the OECD Guidelines for Multinational Enterprises.

Where are commodity crops certified, and what does it mean for conservation and poverty alleviation?

Voluntary sustainability standards have expanded dramatically over the last decade. In the agricultural sector, such standards aim to ensure environmentally and socially sustainable production of a variety of commodity crops. However, little is known about where agricultural certification operates and whether certified lands are best located for conserving the world's most important biodiversity and benefiting the most vulnerable producers. To examine these questions we developed the first global map of commodity crop certification, synthesizing data from over one million farms to reveal the distribution of certification in unprecedented detail. It highlights both geographical clusters of certification as well as spatial bias in the location of certification with respect to environmental, livelihood and physical variables. Excluding organic certification, for which spatial data were not available, most certification of commodity crops is in tropical regions. Certification appears to be concentrated in areas important for biodiversity conservation, but not in those areas most in need of poverty alleviation, although there were exceptions to each of these patterns. We argue that the impact of sustainability standards could be increased by identifying places where it would be most beneficial to strengthen, consolidate, and expand certification. To achieve this, standards organizations will need to undertake more rigorous collection of spatial data, and more detailed analysis of their existing reach and impacts, with attention to potential trade-offs between different objectives. Efforts to promote spatial prioritization will require new partnerships to align specific conservation aims with the interests and capabilities of farmers.

Tracking the Quality Premium of Certified Coffee: Evidence from Ethiopia

Summary Certification of Voluntary Sustainability Standards (VSS) is rapidly increasing in global value chains. While consumers, mostly in developed countries, are willing to pay significant premiums for the certification of such standards, it is not well understood how effectively these incentives are transmitted to producing countries. We study VSS—more in particular Fair Trade and Organic certification—in Ethiopia’s coffee sector, the country’s most important export commodity, using a unique census of transaction data at the export level and large-scale data at the production level. We find that transmission of export quality premiums to coffee producers is limited, with only less than one-third of this premium being passed on, and we find limited evidence of effects due to communal investments. Moreover, as quality premiums are small and average production levels in these settings are low, we estimate that these premiums would only lead to an increased income for coffee farmers of 22 USD per year even with a perfect transmission scenario, and therefore would have little impact on the welfare of the average coffee farmer. Given that the VSS studied are characterized by the highest premiums among VSS schemes, it can be assumed that even lower benefits from other VSS certification schemes trickle down to producers.

Voluntary Sustainability Standards: A Squandered Opportunity to Improve Workers' Wages

AbstractThe sustainable development agenda has long been linked with social justice, income equality, and workers' rights. This article argues that voluntary sustainability standards‐setting organizations (VSSSOs) can contribute to these goals by requiring employers to pay living wages and actively support collective bargaining. Examining the content of 25 voluntary sustainability standards (VSS) set by 16 systematically selected VSSSOs, this study finds that only 32% of VSS mandate a living wage, and only 16% rigorously support collective bargaining. It argues that supporting national minimum wages is helpful but not sufficient, examines sources of downward pressure on VSS, identifies potential explanations for variation among standards, and briefly describes a new initiative promoting living wage standards. While VSS are not a silver bullet for sustainable development or wage equity, VSSSOs are overlooking a significant opportunity to be a transformative part of a broader solution. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment