Voluntary Sustainability Research Articles

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.

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.

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.

The effect of sustainability assurance demand on information asymmetry: evidence from French companies

The purpose of this paper is to examine whether voluntary demand for sustainability reporting assurance by French companies is associated with lower information asymmetry. The use of the generalised least squares method (GLS) for a sample of 768 firm-year observations of French companies belonging to the SBF 250 and CAC All-Tradable indices during the period 2010-2012, highlights how voluntary sustainability assurance demand reduces the problems of asymmetric information between the different market agents. To our knowledge, this study is the first that has examined the impact of sustainability assurance on the information asymmetry in code-law countries, with low investor protection rights, such as France. Moreover, this research examines the effect of sustainability reporting assurance on information asymmetry measured by bid-ask spread. In addition, this study makes a link between two important areas of sustainability assurance and finance.

Criteria for effective zero-deforestation commitments

Abstract Zero-deforestation commitments are a type of voluntary sustainability initiative that companies adopt to signal their intention to reduce or eliminate deforestation associated with commodities that they produce, trade, and/or sell. Because each company defines its own zero-deforestation commitment goals and implementation mechanisms, commitment content varies widely. This creates challenges for the assessment of commitment implementation or effectiveness. Here, we develop criteria to assess the potential effectiveness of zero-deforestation commitments at reducing deforestation within a company supply chain, regionally, and globally. We apply these criteria to evaluate 52 zero-deforestation commitments made by companies identified by Forest 500 as having high deforestation risk. While our assessment indicates that existing commitments converge with several criteria for effectiveness, they fall short in a few key ways. First, they cover just a small share of the global market for deforestation-risk commodities, which means that their global impact is likely to be small. Second, biome-wide implementation is only achieved in the Brazilian Amazon. Outside this region, implementation occurs mainly through certification programs, which are not adopted by all producers and lack third-party near-real time deforestation monitoring. Additionally, around half of all commitments include zero-net deforestation targets and future implementation deadlines, both of which are design elements that may reduce effectiveness. Zero-net targets allow promises of future reforestation to compensate for current forest loss, while future implementation deadlines allow for preemptive clearing. To increase the likelihood that commitments will lead to reduced deforestation across all scales, more companies should adopt zero-gross deforestation targets with immediate implementation deadlines and clear sanction-based implementation mechanisms in biomes with high risk of forest to commodity conversion.

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.

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.

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.

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.

Recent trends in sustainability reporting by German universities

Voluntary sustainability reporting in the higher-education sector is still in its early stages. To better understand it, we looked at all 401 German universities to examine the specific contents of disclosure; methodologically, we applied content analysis using a university-specific indicator system. This study covers 40 sustainability reports that were published by 21 universities prior to August 2016. The results provide insights into recent trends in universities’ voluntary sustainability reporting by comparing the current results to international studies as well as an earlier study using the same population, which was published in 2014. Our findings indicate significant differences in reporting as well as an overall trend towards a broader and deeper coverage of reported content. In general, there is a strong focus on the university dimension, whereas the social dimension attracts much weaker attention. The reason for such emphasis on the university dimension can be traced back to self-profiling or attracting potential students and young scientists as well as to foster a positive public perception, for example, to increase the chances to acquire third-party funding.

Towards the Evaluation of the Ecological Effectiveness of the Principles, Criteria and Indicators (PCI) of the Forest Stewardship Council (FSC): Case study in the Arkhangelsk Region in the Russian Federation

The Forest Stewardship Council (FSC) is a voluntary sustainability standard with global reach that has been developed to encourage responsible and sustainable forest management. Despite its broad appeal, there is little scientific assessment to substantiate the effectiveness of FSC in the boreal zone. In this study, an ecosystem-based and participatory approach was applied to a case study in the Arkhangelsk Region of the Russia Federation to assess the potential influence of the principles, criteria and indicators of the Russian FSC standard. An ECOSEFFECT theoretical plausibility analysis was conducted to evaluate the potential effectiveness of FSC in safeguarding the ecological integrity of the ecosystem. Besides spatial analysis and a field visitation, core elements of the methodological procedure were workshops with experts and stakeholders who directly contributed to knowledge mapping and analysis. The results of the study suggest FSC can potentially influence and improve forest management including monitoring and evaluation, foster the institutional capacity, and enhance knowledge on the impacts of forest management. Theoretically, FSC has a certain potential to reduce a range of anthropogenic threats to the ecosystem, such as large-scale deforestation and forest degradation, logging of High Conservation Value Forests, large size of clear-cuts, excessive annual allowable cuts, damage to trees during forest operations, and hydrological changes. However, human-induced fire is the only ecological stress that was assumed to be effectively tackled through a strong and positive influence of FSC. The results of the theoretical analysis with a semi-quantitative evaluation revealed the potential for FSC to generate much more effective outcomes for biodiversity by prudently targeting key ecological problems. The biggest problem is the large-scale clear-cutting practice, especially within IFL. These devastating practices are not promoted by, but are compliant with the current Russian FSC standard. This feeds doubts about the consistency of FSC practice and its credibility.

Success of voluntary sustainability certification schemes – A comprehensive review

Abstract Voluntary sustainability certification schemes (CS) like the well-known Forest Stewardship Council are valuable approaches to address sustainability issues in different sectors. So far, a wide range of single topic studies exist but few emphasis has been put on analyses investigating factors considered responsible for shaping different dimensions of CS’ success across different sectors and scientific disciplines. This study aims at closing this research gap by conducting a comprehensive systematic literature review of this growing body of research. Based on a database research, 226 records were selected to derive a framework explaining generic factors for the success of CS. To unveil broadly discussed factors and success dimensions within the literature, a contingency analysis was performed based on identified text passages. The relationship between specific factors and certain success dimensions is discussed comprehensively in the literature: The influence of the quality of the requirements and the capacity building measures on the problem solving capacity of CS as well as the influence of the characteristics of the adopting entities and to a lower degree governmental influences on the diffusion of CS are widely discussed. Moreover, the influence of the involvement of stakeholders and the transparency of the CS on the acceptance of CS is a main focus of analysis. A barely studied success dimension is the behavioral change towards more sustainable practices. These results enable and foster an interdisciplinary discussion on certification schemes which is necessary for understanding CS comprehensively and eventually driving practical improvements.

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.

Exploring local and organic food consumption in a holistic sustainability view

PurposeThe purpose of this paper is to identify sustainability aspects that overlap with local and organic consumer profiles in order to provide evidence that can be used to promote both kinds of foods in a sustainable food consumption (SFC) integrated framework.Design/methodology/approachDiscriminant analysis was applied to a national sample of 3,004 respondents in Italy to separately depict local and organic consumers’ profiles based on personal values, eating habits, food purchase motivations, and involvement.FindingsOrganic consumption showed a lower penetration compared to local consumption. However, organic consumers adhered to more sustainable consumption principles. Adopting healthy diets and sharing self-transcendence values emerged as common traits of both consumers. Regular consumption made both consumers’ profiles look similar by sharing more sustainability-related traits.Research limitations/implicationsOnly two out of the different types of foods promoted as sustainable were considered. Further insights could be made regarding fair trade foods and food promoted by voluntary sustainability standards.Practical implicationsThe overlapping motivations of the two consumer profiles provided evidence of the potential efficacy of joint promotion in favour of sustainability and demonstrated that a synergic approach among food systems could foster more sustainable consumption.Originality/valueThis study identified common sustainability motivations among different consumer groups, based on sustainable food categories, adopting a holistic vision of SFC.

Comparing voluntary sustainability initiatives and product carbon footprinting in the food sector, with a particular focus on environmental impacts and developing countries

AbstractTwo types of private voluntary standards used in the food sector are analyzed in this article. Namely, sustainability initiatives that encourage best practice management on farms for environmental, social and economic gains, and also product carbon footprints (PCFs) that estimate the climate impact of products across entire supply chains. Concern is sometimes voiced about the potential negative impacts of both on exports from developing countries, especially related to outcome‐based PCF initiatives which involve complex calculations and could present particular burdens for small producers. It is argued here that both approaches have a role to play in the conservation of our environment, though both have advantages and disadvantages. The article concludes with recommendations for policy‐makers and standard setters.

Voluntary Sustainability Report Assurance by the Fortune 100 Web Appendix

Voluntary Sustainability Report Assurance by the Fortune 100 Web Appendix