SUSTAINABLE SUGARCANE CHANGING FOR GOOD - BONSUCRO STRATEGIC PLAN 2021-2026 SUMMARY VERSION
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SUSTAINABLE
SUGARCANE
CHANGING FOR GOOD
BONSUCRO STRATEGIC PLAN 2021-2026
SUMMARY VERSION
1
CONTENTS
Foreword
Bonsucro Strategic Plan 2021-2026 1. Strategy On A Page 1
May 2021
2. Baseline 2020-21 2
Bonsucro is the leading global
sustainability standard for sugarcane 3. Global Context 2021-26 4
and its many derivatives.
4. Purpose & Strategic Aims 6
Our core purpose is to accelerate the
sustainable production and uses of 5. Core Principles 7
sugarcane.
6. Creating Value 8
This summary version of our 5-Year
Strategic Plan sets out our ambitions
7. Environment 10
and commitments for the evolution
8. Human Rights & Decent Work 11
of one of the world’s most important
crops. 9. Priorities 12
You can find the full version here, with 10. Making It Happen 14
more detail on the sugarcane sector
and future trends as well as our plans 11. Global Strategy, Local Impact 18
to implement the strategy.
12. Growing With The Strategy 20
13. Finance & Funding 22
14. Conclusion 24
Bonsucro is a company registered in
England and Wales, company number
06798568.
Information correct at time of Annex 1: Glossary 26
publishing – May 2021
Annex 2: Value Propositions 28
© Bonsucro, 2021
Contact: info@bonsucro.com
2 3
FOREWORD We also recognise the commitment of end users 1. STRATEGY ON A PAGE
to create demand and incentivise change along
STRENGTHENING OUR the supply chain.
COMMITMENT TO We have developed this strategy collaboratively,
Our five-year strategy builds on the achievements and progress of recent years, blends
experience with new approaches, recognises where we need to do better, and sets an agenda for
SUSTAINABLE SUGARCANE as we do everything in Bonsucro, supported by a
Steering Committee drawn from the Board and
continuous improvement and greater impact.
the executive leadership, and engaging our staff, The strategy is built around our overriding Purpose - to accelerate the sustainable production and
This is the strategic plan for Bonsucro for the
members and partners around the world. uses of sugarcane - as well as three Strategic Aims against which we will measure progress over
five years from April 2021 to March 2026. It sets
the direction for a critical period in shaping time. Implementation of the strategy is designed around five strategic Priorities, delivered by six
In working on this plan, we have been mindful
our sector’s contribution to the UN Sustainable Activities and guided by our four Core Principles.
that COVID-19 will have a profound effect on our
Development Goals. sector through 2021 and beyond.
At the same time, the pandemic has reminded
us that all planning is subject to unforeseeable
Over the past 15 years, our Board, members, challenges and that any strategy needs to Figure 1: Bonsucro Core Strategy 2021-2026
Secretariat and partners throughout the world be robust and ambitious, but also agile and
have helped make Bonsucro a global force adaptable.
for sustainability in the sugarcane world and
beyond. We have a strong track record both as a
voluntary standards system and as a convening SCALE & IMPACT
organisation to address critical sustainability
challenges and opportunities for the sector. We will build the scale and impact of our
organisation through continued growth in our
This Strategic Plan sets out our ambitions and financial and human resources.
commitments and use of resources for one of
the world’s most important crops. We have set out clear plans to grow our
membership, expand our programmes and
It reflects our confidence in the future of improve both effectiveness and efficiency.
sustainable sugarcane and in the contribution
that Bonsucro will make for the benefit of all our Our nine-month strategy development process
stakeholders. has coincided with our latest revision of the
Bonsucro Production Standard (BPS). This
Sugarcane has an essential and positive role to is a separate consultative exercise with its
play in the world’s economic and environmental own governance, and the revised Production
future. Grown in more than 115 countries and Standard will support delivery of this new
essential to the economy of many, the sector strategy.
generates employment and income for millions
of people. While we must address many complex A POSITIVE FUTURE
issues, the long-term prospects look positive
for sustainably produced sugarcane and We approach this next phase proud of our
derivatives. achievements to date, aware of where we need
to be flexible and do more and better, and
GLOBAL COMMUNITY confident that we have a unique and important We will build on our position as the leading global sustainability standard for sugarcane and its
part to play in the global drive to sustainable many derivatives, and we will continue to support, grow and deliver value to our members, whose
In this five-year period, we will continue agriculture. commitment is vital to our success.
to accelerate change through our global
community of more than 260 members in At the same time, we will expand our role as a convening force for the sector with our members
over 50 countries, from all components of the and others to drive change beyond certification, including new collective commitments and actions
sugarcane supply chain, from farm to end user to address critical systemic issues.
and civil society organisations.
We will increase our focus on market development for Bonsucro-certified products and credits,
We recognise the essential role that our certified building supply and demand for sustainable sugarcane products and derivatives.
mills and farms will play in the realisation of
this strategy, and we appreciate how much Jean Claude Autrey, Chair We will expand our reach, capability and impact by developing our Monitoring, Evaluation and
they have already achieved in demonstrating Danielle Morley, Chief Executive Learning capabilities (MEL), and through the digitalisation of our systems, adding new capabilities
the value and effectiveness of Bonsucro in areas such as analytics, policy and communications.
certification.
4 1
POSITIONING FOR THE FUTURE
2.BASELINE In delivering our strategy, we see significant challenges and opportunities - both
2020-21 strategic and operational – that will shape our success. We must:
Our strategy describes how we progress from our current state to where we want to be demonstrate a sharper sense of purpose and intended impact while combining
by 2026. We will measure our impact through this strategy period against Bonsucro’s Bonsucro’s dual roles as a recognised standard system and dynamic convening platform
achievements and challenges in 2020/21. for the sector
balance our ambition to raise the criteria of the Bonsucro Production Standard (BPS) with
making it more accessible to farms and mills
develop stronger value propositions for all our members as well as governments, investors
and other key stakeholders
WHERE WE ARE TODAY
increase our focus on improving uptake for Bonsucro-certified product – by bringing more
Bonsucro has become established as a global sustainability system and network, with a
traders and end users onboard, improving market access for producers and stimulating
reputation as the ‘gold standard’ for sustainable sugarcane: robust, credible, balanced,
internationally recognised and an ISEAL code compliant member. demand where possible
We enjoy greater scale and reach in terms of volumes and membership than any other further demonstrate our relevance to multi-national companies who have an increasing
multi-national standard system focused on sugarcane. While we know we must do better, number of options for investing in sustainable sourcing - and can choose from a variety of
we are proud of our successes to date: competing Standards
We have over 260 active members, in over 50 countries, including certified mills in nine of embrace partnerships with other standards and civil society as well as the public and
the ten largest sugarcane-producing countries. private sectors to share knowledge and expertise, and further our mutual sustainability
goals.
Audit data from Bonsucro-certified producers and mills indicate significant year-on-year
reductions in Greenhouse Gas (GHG) emissions and water use. This strategic plan seeks to build on Bonsucro’s strong foundations and distinctive
advantages - and to enable us to address the challenges and opportunities ahead with
Our certified mills can demonstrate agility, determination and confidence.
no child labour or forced labour, and
the absence of discrimination.
On average, wages on Bonsucro-
certified farms are 21% above the
national minimum wage and, after
five years of certification, operators
achieve significant reductions in
accident rates.
Bonsucro certification applies to
a wide range of sugarcane end
products, including bioethanol and
bioplastics.
Last year, we more than doubled our
year-on-year investment in impact
projects promoting sustainable
production and building capacity
with mills and smallholders.
We are financially robust, thanks to
continued growth in our membership
and the introduction of digital credit
trading in Bonsucro-certified product.
2 3
3. GLOBAL CONTEXT SOCIAL & LABOUR The volume of sugarcane produced to Sugar prices
voluntary sustainability standards is set to
2021-2026 Meeting minimum safeguards on human rights increase, from growth in Bonsucro as well Real sugar prices are predicted to remain flat at
and social standards will become increasingly as other systems. close to 2020 levels, with periodic disruptions due to
We have comprehensively considered the important for the private sector, driven by external factors7.
external factors that will influence our work, and inter-governmental frameworks (particularly Diversified end-products
what they are likely to mean for Bonsucro. the UN Guiding Principles Business and World prices for raw and white sugar have been
Human Rights and the OECD Guidelines on Sugarcane has a diverse range of food volatile, with the price of raw sugar often dropping
Multinational Enterprises) and exacerbated and non-food derivatives and end uses, below production costs, threatening the economic
SUSTAINABLE DEVELOPMENT GOALS by the fallout from COVID-19. fuelling continued market development. viability of growers, millers and processors. Prices are
affected by multiple factors including government
The UN Sustainable Development Goals (SDGs) The human rights-based approach adopted While sugar will continue to account for subsidies and import tariffs, oil price movements and
for 2030 present a shared blueprint for peace by some international NGOs and development some 75% of the end usage of sugarcane, export and currency fluctuations.
and prosperity for people and planet, providing agencies will underpin the work of institutional we expect considerable growth in its use as
a framework for Bonsucro and other global donors and civil society organisations and a biofuel and in plastics and packaging -
sustainability initiatives. increasingly influence the policies and practices as well as other markets such as molasses
of businesses, governments and foundations. and animal feed. We want certified IMPLICATIONS FOR BONSUCRO
The Sustainable Development Goals Report 2020 sustainable sugarcane to become the
shows that, even before the COVID-19 pandemic, This approach focuses on those who are norm for these newer markets. Taking these factors into account, we have set out
the number of people suffering from food most marginalised, excluded or discriminated the main implications for Bonsucro.
insecurity was rising, the natural environment against. This often requires an analysis of Global sugar consumption is projected
continued to deteriorate rapidly, and inequality gender norms, different forms of discrimination to grow at around 1.4% per annum, SDGs: Show clearly how we plan to contribute to
persisted in all regions. and power imbalances to ensure that reaching 199 Mt by 20293, underpinned by those SDGs we are best equipped to support.
interventions reach the most marginalised population and income growth. There will
segments of the population. be considerable variations geographically Climate: Short-term prioritisation of the reduction in
INVESTMENT & REGULATION as health concerns and sugar taxes reduce GHG emissions in line with COP26 goals, with longer-
demand in Europe and the Americas, offset term ambitions for net zero targets and building
The global cross-sector drive for economic, TECHNOLOGY however by increases in Asia and Africa. climate resilience.
social and environmental sustainability will The average world level of per capita
continue to gather momentum. Technology and digitalisation will have consumption is expected to increase from Impact: Provide robust metrics for environmental,
positive impacts in sugarcane supply chains, 22.5 kg to 23.5 kg/person by 2026. economic and social improvements throughout
Legal and regulatory pressure for the adoption but we must ensure that the benefits are sugarcane value chains.
and disclosure of environmental, social and widely accessible. Ethanol will remain the world’s principal
governance factors (ESG) in financial reporting biofuel through this period, accounting for Value: Demonstrate Bonsucro’s unique offer and
will continue to grow. Meanwhile access to ‘green On the production side, we expect some some 25% of all sugarcane production4. value to business and to society.
finance’ opportunities will increase for businesses increases in output due to agricultural Sugarcane is more efficient than other
that can comply with ESG due diligence mechanisation, precision farming, and mobile Investment: Improve financial incentives for
biofuel feedstocks, returning about
requirements. technology and data. sustainable production, by demonstrating the
eight times more energy than used in
business case to financial institutions and other
the process, which is twice as efficient
Other technologies, such as blockchain and AI, investors.
as maize5. Global demand for ethanol is
ENVIRONMENT will improve transparency and visibility along forecast to grow from 129 GL in 2020 to 140
supply chains and enable better identification Demand: Do more to enable the flow of sustainable
GL by 2026.
The UN SDG Report 2020 confirmed the urgency and communication around sustainability and sugarcane through to the marketplace and
of global action on climate change1, with further impact. respond to demands for greater traceability and
Ethanol will be increasingly used to
commitments due at COP26 in November 2021. transparency.
produce bioplastics6, which have the same
SUGARCANE SECTOR physical and chemical properties as oil- Data: Digitalise from farm to retail, using new tools,
GHG emissions will continue to be the primary
based plastic and can be fully recycled. technologies and analytics to strengthen our support
contributor to climate change, with agriculture
Grown in 115 countries, sugarcane is one of the Sugarcane is also used to produce for farmers, supply chain mapping and traceability,
accounting for around 14% of total emissions.
world’s most important commercial crops with biodegradable PLA plastic. Market growth and impact measurement.
We also expect to see a greater focus on water a vast global market for sugar, ethanol, and is likely to be supported by investment
depletion and pollution, which poses another other sugarcane derivatives. in research and development in the Engagement: Continue to build productive
major social and environmental threat in many bioplastics sector by private and public partnerships and communicate more actively and
regions. Global sugarcane production is predicted organisations, driven by policy decisions effectively with a wider range of stakeholders to
to grow by about 1.5% per annum, reaching such as that of the EU to reduce the overall effect sector-wide change.
Scientific models indicate that global adoption approximately 202 Mt by 2026. We want to see production and consumption of single-use
of the Bonsucro Standard would halve GHG this growth coming from increased efficiency, plastic products by about 80% by 2022. Flexibility: Ensure that we are responsive and ready
emissions and reduce water use by 65% and rather than land conversion. to make short-term adjustments as appropriate
nutrient loading by 34%2. within our overall strategic direction.
4 5
4. PURPOSE & STRATEGIC AIMS 5. CORE PRINCIPLES
We are committed to taking a leadership role in guiding and enabling the sugarcane sector Our four Core Principles guide our operational choices and decision-making in implementing
to achieve greater sustainability, with our clearly articulated Purpose and ambitious but our Strategic Aims and Priorities.
achievable Strategic Aims.
COLLABORATION INCLUSIVITY CREDIBILITY ADAPTABILITY
Collaboration is central We need to be inclusive to Transparency and the Sugarcane production and
to our identity as a drive sector transformation, credibility of our standards, uses are highly impacted
multi-stakeholder and to scale impact. assurance, MEL and impact by landscapes, economies,
initiative with a global reporting are vital to our markets, cultures, and
membership drawn This includes: engaging work. governments. Sustainability
from all parts of the with workers, mills, farmers, is a journey of continuous
sugarcane sector and producer communities; We adhere fully to the improvement.
with an interest in enabling sustainability ISEAL Credibility Principles,
sustainability. improvements outside of embraced by other We will adapt our offering and
certification; and aligning leading sustainability approach to different contexts
Our success as a and co-operating with standards systems working and, wherever possible,
standard system and as strategic partners, other to bring about positive devolve responsibility to our
a platform requires us sustainability standards social, environmental people and partners on the
to convene, learn and systems and government and economic impacts, ground. We will strengthen our
share with like-minded agencies for collective while decreasing negative organisational adaptability
organisations. benefit. impacts. and resilience to ensure we can
pivot to respond to unforeseen
events and crises.
CONTRIBUTION TO THE SUSTAINABLE DEVELOPMENT GOALS
Our three Strategic Aims correspond to the three pillars of sustainable development and define
how we will contribute to the UN’s 2030 Sustainable Development Goals. Our collaborative way of
PURPOSE STRATEGIC AIMS working, and our expanding role as the sustainability platform for sugarcane across its value chains,
underpins how we will achieve our Strategic Aims in line with Goal 17 - Partnerships for the Goals.
Underpinning our Purpose are three Strategic
To collectively accelerate Aims, which are of equal importance and
the sustainable production Table 1: Bonsucro’s contribution to the SDGs
interdependent.
and uses of sugarcane.
Create value across the supply chain Sustainability Pillar Environmental Social Economic
This statement captures our role as a catalyst
for market transformation, driving uptake of Improve the environmental Strategic Aim Improve the Strengthen Decent Work Create value across
sustainable sugarcane across sugar, ethanol, impact of sugarcane and respect for human
environmental impact the supply chain
molasses, and bagasse value chains. of sugarcane rights in sugarcane
Strengthen Human Rights and Decent farming and milling
It also expresses our position as a global
Work in sugarcane farming and milling
sustainability platform, working collaboratively
SDG contribution 6. Ensure availability 5. Achieve gender 8. Promote
with farmers, millers, traders, end users, civil
society, government and other sustainability These Strategic Aims describe the main and sustainable equality and sustained, inclusive
objectives for Bonsucro, working together management of water empower and sustainable
initiatives to scale sustainability across the and sanitation for all women & girls economic growth,
sector and landscapes. with our members and partners, to fulfil our
full and productive
Purpose. 11. Protect & restore employment and
Bonsucro focuses exclusively on sugarcane We have set targets that recognise the sustainable use of 8. Promote decent work for all
and all its end-products. It does so on a terrestrial ecosystems sustained, inclusive
different challenges and priorities for and sustainable
global basis with strong local presence in the sustainable sugarcane across our key 13. Take urgent action economic growth, 12. Ensure
countries that produce, use and consume the regions and countries, and for different to combat climate full and productive sustainable
most sugarcane and its products. types of farming. change and its employment and consumption &
impacts decent work for all production patterns
6 7
We cannot intervene in setting prices, which Mills, farmers, and all our members will derive value from greater awareness of improvements
are determined by the market, but we will throughout the sector through our strengthened capacity in MEL. This will facilitate the transfer
6. CREATE VALUE ACROSS continue to provide the framework that of best practice and give mills and their associations increased voice and visibility among policy
facilitates compliance with high sustainability makers and influencers.
THE SUPPLY CHAIN standards and therefore enables access to
markets. All members stand to benefit from our collaboration with other initiatives and standards systems
to drive the overall supply and demand for sustainably produced sugarcane, reduce the need
To increase the amounts that end users for multiple audits and assure compliance with national or regional requirements.
We will create value for mills and farms and
source from certified mills, we will provide
across the entire sugarcane supply chain
high-quality information and data for mills We cannot, however, deliver this value alone. Potential benefits will be maximised through
including buyers and end users – as well as
to improve their sustainability performance, shared responsibility and reciprocity, particularly when buyers and end users recognise
others with a stake in making the sector more
and we will enable producers to share their producers’ investments in sustainability and prioritise purchasing from those entities.
sustainable, such as governments, investors
sustainability metrics with their customers - if
and civil society.
they wish - demonstrating compliance with
standards set by multinational enterprises Table 2: Global indicators & targets 2021-2026
and investors.
We will advocate for a sustainable sugarcane Aim: Create value across the supply chain
Through a unique combination of certification,
sector by providing clear and consistent
convening and collaborative action, Bonsucro
evidence of the economic, social and Objectives Indicators Baseline Target
offers different Value Propositions for different
environmental benefits, from independent
member and stakeholder groups, aligned
research and our own data. Hectares of certified 1.3 million ha10 2 million ha11
to their respective interests, locations and
ambitions. Increase supply & sugarcane annually
Bonsucro certification contributes to demand of certified Number of certified mills 130 mills12 210 mills13
improved health and safety, reduced costs sustainable sugar,
Independent studies in India8 and Brazil9 Tonnes certified sugar & m³ Sugar: 6.2 million14 Sugar: 9.6 million15
and production gains. The nature and extent ethanol & derivatives
have identified how Bonsucro creates value certified ethanol produced Ethanol: 2.7 million Ethanol: 4.3 million
of the gains will depend on the differing
for mills and farms in terms of productivity, (or equivalent)
production and market situations across the
employment conditions and environmental Number of Bonsucro raw Credits: 1.2million16 Credits: 2.2 million17
wide range of national economic, social and
impact, as well as through the provision of sugar credits (or equivalent) Chain of Custody: Chain of Custody:
legal frameworks within which our members
essential data. sold annually 820,000 t 18 1.6 million t 19
work. Tonnes of certified physical
We will continue to enable all actors in the products sold ex-mill
As the platform for sustainable sugarcane,
supply chain to reduce risk, build resilience
we will enable and support pre-competitive Number of independent
and keep pace with increasing governmental, More inclusive
collaboration with our members to connect or farmers & smallholders 3,000 farmers20
financial and consumer demands for & sustainable
align with their peers and with other actors in reached* by Bonsucro 15,000 farmers
evidence of best social, labour, climate and value chains
the value chain. certification and/or impact
environmental impacts.
projects over 5 years
This will enable mills and farms to improve
We will work to increase the uptake of
their performance through access to novel Convene impact & Total money invested in
Bonsucro-certified products and derivatives
solutions and facilitate collective action on innovation projects Bonsucro impact and
in key consumer food, beverage and alcohol £1.46m £5.37m
complex sustainability issues. innovation projrcts over 5
sectors, as well as bioethanol and fast-
growing markets such as bioplastics and bio- years21**
We will increase our support for independent
packaging.
and smallholder sugarcane farmers and work Deliver value to 93%
Annual membership 95%
with the sector to build more inclusive and members
We will continue to promote the sale and retention rate
resilient value chains. This will be achieved
purchase of credits through the Bonsucro
through impact projects and new global and
Credit Platform and develop the Bonsucro
national partnerships to support farmers *By “reached” we mean those farmers who have been engaged in information, training, or capacity building
Impact Fund to leverage funds from the sale of
with access to affordable finance, increased programmes where Bonsucro or its members have played a significant role in planning, delivery, or reporting.
credits for investment in impact projects.
productivity, improved working conditions **Income from credit impact, grants and partnerships
and livelihoods and adaptation to climate
change.
8 9
water stewardship policies and plans
resolution. It aligns fully with the UN Guiding
to manage water responsibly and 8. STRENGTHEN HUMAN
7. IMPROVE THE ENVIRONMENTAL equitably within the landscape. Principles of Business and Human Rights and puts
RIGHTS & DECENT WORK us at the forefront of sustainability standards.
IMPACT OF SUGARCANE We will continue to provide a
continuous improvement framework IN SUGARCANE FARMING We will promote fairer wages for the most
for water management in sugarcane
Environmental issues remain a high priority for our
members and partners, many of whom have specific production through the Standard. & MILLING vulnerable people in farming and milling through
action on benchmarking and piloting living wages
commitments to reducing the negative impacts of their Bonsucro members commit to and living incomes in specific origins.
The Bonsucro Code of Conduct calls on all
operations on climate and the environment. supporting the protection of forests members to respect human rights in their
and natural ecosystems in our Code We are in dialogue with other ISEAL code
sugarcane supply chains. The Bonsucro
of Conduct. We will work together compliant members on this critical issue and plan
Production Standard (BPS) requires respect
We will work with members and partners to agree sector- to combat deforestation, and for to join the Global Living Wage Coalition.
for human rights and labour standards for
level commitments to science-based targets for GHG the protection and maintenance of certified entities.
reduction that meet the UNFCCC Paris Agreement by valuable ecosystems. The BPS sets specific requirements for compliance
2030. with international labour conventions, safe and
As a platform we will develop or take healthy workplaces, clear and equitable contracts
We will support our members to meet their GHG targets
part in initiatives to allow members to and minimum wages.
with access to data and knowledge and by aligning with We will continue to drive Decent Work and
green financing opportunities to accelerate the transition move beyond reducing environmental
safer working conditions for farmers, farm
impact to restorative systems. We will build on the sound practices of certified
towards net zero. workers and mill workers – including zero
producers to promote improvements in social and
We will address the water crisis in key origins, and We will extend our impacts through tolerance for forced labour and child labour.
labour conditions by sharing learning and best
particularly in Asia. landscape approaches, building on practice throughout the supply chain.
our convening of two flagship projects, We will work to ensure safe recruitment for
We will partner with members and others, such as the Outcome based standards – a migrant workers, reduce discrimination in all
Alliance for Water Stewardship (AWS), to develop and pilot Our regional and national programmes will
landscape approach’22 and the its forms and promote gender equality.
identify and work with partners to remedy the
‘Good Practice: Better Finance’ most pressing social and labour issues in each
project in South Africa. We will improve accessibility to our standards
Table 3: Global indicators & targets 2021-2026 country, taking account of the local situation.
for workers, focussing on the Grievance
Mechanism we introduced to manage
We will also keep our members updated with best
Aim: Improve the environmental impact of sugarcane complaints against our members. This is
practice and information related to COVID-19 and
designed around inclusivity and accessibility
incorporate COVID-19 along with other HSE risks
Objectives Indicators Baseline Target and facilitates mediation as a means for
into our training.
% Reduction in Scope 1 and 18% reduction >30% reduction Table 4: Global indicators & targets 2021-2026
Drive climate action
2 emissions of certified 0.33 kg CO2e/kg sugar to
in the sugarcane
mills and farms after 5 0.27 kg CO2e/kg sugar Aim: Strengthen human rights & Decent Work in sugarcane farming & milling
sector
years’ certification
Collective commitments & Objectives Indicators Baseline Target (disaggregated by gender)
To be determined through 2021-22
actions** in line with 1.5º
global warming % increase in average Farm: +16% to +21% Farm: 30% increase
Increase wages in differential between average differential Mill: 45% increase
% Increase in water-use >30% increase sugarcane farming wages paid above legal Mills: +18% to +26%
Improve water
efficiency (kg per mm 28% increase and milling minimum wage after 5 average differential
security &
per hectare) by certified 105 kg/mm/ha to years of certification
stewardship
producers after 5 years 135 kg/mm/ha
certification Collective commitments &
To be determined through 2021-22
actions** on Living Wage
Collective commitments
and actions** on To be determined through 2021-22 Improve % reduction in accidents
sustainable water occupational health Farm: 38% decrease Farm: 43% decrease
in certified farms & mills
management & safety in farming Mill: 18% decrease Mill: 23% decrease
after 5 years’ certification
and milling
Improve biodiversity # hectares High
and soil health Conservation Value To be determined through 2021-22 Enhance respect for Collective commitments
Areas (HCVA) protected human rights To be determined through 2021-22
and actions** to promote
& maintained in high-risk UN Guiding Principles
areas on Business & Human
Rights & OECD-FAO
** “Collective commitments & actions” refers to collaborative research, capacity building, policy commitments or impact projects where Guidance for Responsible
Bonsucro acts as lead/convenor with a significant role in planning, financing, delivery or as a knowledge partner.
Agricultural Supply
10 11
9. PRIORITIES
We have identified five global Priorities, each of which contributes to the achievement of
one or more of the Strategic Aims.
BUILD SUPPLY & DEMAND FOR SUPPORT GROWERS & MILLS ON
SUSTAINABLE SUGARCANE & DERIVATIVES THEIR SUSTAINABILITY JOURNEY
We will stimulate greater uptake for Bonsucro- In response to stakeholder demand around
certified sugar, ethanol and other derivatives, but the 2021 Production Standard Revision, we are
without becoming an industry promotional body. testing the inclusion of a stepwise approach to
some key indicators within the Standard.
While Bonsucro cannot intervene commercially in
ENHANCE THE BONSUCRO SYSTEM OF CONVENE THE SECTOR TO MEET the sugarcane supply chain or marketplace, we We will also explore the feasibility of a stepwise
STANDARDS & ASSURANCE COMPLEX CHALLENGES can influence demand for sustainable sugarcane, approach to drive sustainability.
particularly Bonsucro-certified product, across
This is an area of core expertise for Bonsucro and Beyond driving sustainability diverse end use markets. Key actions will include: We are considering a move towards a four-step
for the certification bodies with which we work. We through standards and system based on the continuous improvement
will increase the number of sugarcane farms and certification, we will step up our - Identify new markets for Bonsucro certification cycle: plan, do, check & act.
mills certified each year, while continuing to update convening role for the sector, - Expand membership in both traditional and
emerging end-use markets Critical questions remain to be answered,
our standards and systems to drive improvements enabling pre-competitive
- Develop shared responsibility among members, including the role of assurance and certification,
in sustainability. collaboration and cross-sector
and between producers and end users the role of market forces, safeguarding the
partnering.
In our Production Standards, environmental issues - Expand trade in Bonsucro credits credibility of claims, and how to incentivise
cover water usage, soil health, safeguarding We will focus on critical issues where - Seek alignment with market-side standards e.g. change and progression along the steps.
sensitive ecosystems and biodiversity hotspots, collective action is needed and sustainable jet-fuel, carbon markets
climate resilience, use of agrochemical and where multiple stakeholders have - Support members’ traceability activity.
fertilisers. The social priorities relate to labour, interests in finding viable solutions.
workers’ safety and living conditions, non- We will do this at a global level and PROMOTE KNOWLEDGE, BEST PRACTICE &
discrimination, wages and more. locally in key producer countries.
INNOVATION
Our Chain of Custody Standards ensure the We will develop science-based
traceability of sustainability claims along the supply targets for GHGs to meet the Sharing knowledge and best practice and championing
chain from farm to end user. UNFCCC Paris Agreement 2030 innovation are central to our role and aspirations as a
targets. convening force for the sugarcane sector.
We will deliver on this Priority by:
- Publishing the revised Bonsucro Production We will test and scale best practice We will:
in water stewardship. - Improve MEL and impact reporting
Standard in 2021
- Reviewing and updating the Bonsucro Production - Unlock new value from Bonsucro data and analytics,
Standard for Smallholder Farmers We will also work with members including supply chain mapping
- Updating the Chain of Custody Standards and and partners to improve social and - Update Bonsucro members on the latest global research
Claims rules for sugarcane derivatives labour conditions and respect for on sugarcane sustainability issues
- Strengthening our assurance model human rights, with specific attention - Convene and contribute to research to improve the
and social auditing to working conditions, heat stress, outcomes of sustainability standards
- Developing partnerships with compatible standards migrant and forced labour, child - Share learnings from impact and innovation projects
and initiatives to enable scale-up on the production labour, wages and gender equality. within and beyond the membership
- Provide shareable and practical ESG metrics, including to
or market side.
financial institutions.
12 13
10. MAKING IT HAPPEN We will also evolve the Bonsucro Production
Smallholder Standard (BPSS), which is aligned
Our choice of projects will be rigorous,
based on needs and focussed on projects
MEMBERSHIP DEVELOPMENT
This section describes the principal Activities to the BPS but adapted to the realities of that clearly serve our Strategic Aims, Bonsucro will remain a member organisation,
through which we will deliver the Strategy. smallholder farming. deliver measurable impact and contribute representing a wide range of stakeholders and
to our KPIs. sugarcane interests.
In revising our Standards and related guidance
we will ensure the integrity of the Chain of Partners will include Bonsucro members, Figure 2: Bonsucro membership 2020-21
Custody and the tracking and authentication of international and local non-governmental
CERTIFICATION & ASSURANCE claims. organisations, other ISEAL code compliant Intermediary Trader Civil Society
members, international and local 6% 7%
Bonsucro’s Production and Chain of Custody We will develop and strengthen our third-party businesses, institutional and private
Intermediaries End User
standards are core assets that we will continue assurance model, continuing to be ISEAL Code donors, and governmental organisations. 13% 10%
to evolve along with our certification and compliant and to collaborate with ISEAL peers.
assurance protocols and system.
We will explore partnerships with compatible IMPROVE GROWERS’ Farmers &
standards within and beyond sugarcane, and IMPACT PROJECTS ACCESS TO FINANCE Associations
Industrial & 15%
along the value chain. Associations
We will increase available funding and We will work with partners and 49%
The BPS is at the heart of everything Bonsucro expertise to drive better outcomes for growers. financial providers to improve access
does. It defines what sustainable sugarcane Impact projects will be funded through credit to sustainability-linked finance for
production should look like and provides a trading and grant-funded partnerships and Bonsucro-certified members by
comprehensive metric tool for sustainable projects. demonstrating the credibility of our Membership engagement will be increasingly
farming and milling. certification and enabling members to devolved to the regions and countries where we
We will develop a Bonsucro Impact Fund to disclose relevant data to help attract operate, with significant investment in the people
In response to member demand the revised invest in initiatives and projects that catalyse or finance. and resources needed to serve and support
BPS, to be launched in 2021, will be more accelerate sustainable sugarcane production members fully.
progressive and more applicable to mills and in key locations in line with our strategic Aims – We will build on the learnings from the
farms at all stages of development. irrespective of whether or not beneficiaries are SECO/ISEAL funded programme ‘Better While supporting and serving existing members
candidates for certification. Practice, Better Finance’ in 2019, where we is important to us, we plan to grow the number of
joined with fellow ISEAL code compliant members from over 260 in 2021 to around 450 by
The Bonsucro Impact Fund will be designed members and the South African financial 2026, across all classes and end uses.
to fund projects in a variety of ways: through sector to better understand how our
credit trading, direct grants, match-funding, Standards could expand access to finance Specifically, we will recruit more end users and
“The BPS gives peace of mind to competitive funds or other means. We will for producers. retailers in consumer markets - enabling them to
our customers, knowing that they learn from other funding organisations and purchase certified material and/or credits, and we
are purchasing products from a mechanisms and design a best-in-class system. We will look to convene the sugarcane will target new members in the ethanol, animal
company that carries out its agro- sector around payment for environmental feed, bio-packaging, and bioplastics sectors.
industrial activities with good services (PES) - relatively new schemes
practices and in compliance with that seek to offer payment to landowners Members will benefit from shared knowledge and
the rules. It also allows us to give to implement good agricultural practices richer data collected through the annual reporting
employees greater confidence and IMPACT PROJECT EXAMPLES and protect the environment. and certification processes, enabling them to
security internally.” better analyse and benchmark their results.
(End user) Mexico: Collaboration to improve
sustainable production of small
producers in partnership with
PepsiCo, Proforest, One Peterson
& Mill Tala.
Pakistan: Partnership with IFC
to support the introduction and
implementation of the Bonsucro
Standard and to facilitate its use
by a mill group and smallholders.
14 15MARKET DEVELOPMENT our 2026 targets as we improve our understanding
of the causal relationship between interventions
We will strive to stimulate and facilitate and results, enabling us to strengthen future
demand and uptake for Bonsucro interventions.
traditional and emerging certified
products as we respond to growing Our data strategy prioritises end-to-end
pressure from end users, consumers stewardship to maintain confidence in our data
and the public sector for sustainable security and to enable more sophisticated use
production and consumption. and sharing, in compliance with data protection
regulation.
Bonsucro’s digital Credit Trading Platform,
launched in late 2019, has the potential to Some certification metric data sets and insights
be a game-changer for the sector. are likely to be provided to members, including a
dashboard for better visualisation, and we will also
While sugarcane and its derivatives cannot enhance the functionality of Bonsucro Connect.
be physically traced through segregated
supply chains to sustainable producers, the
credit system allows buyers to incentivise
and reward the adoption of sustainable COMMUNICATIONS & INFLUENCING
practices by purchasing credits for
sugarcane or derivatives. To build the profile, reputation and impact of
Bonsucro and to better support our members, we
We will drive demand by creating will grow our communications and influencing
compelling evidence-based narratives activities and capabilities globally and regionally.
around members’ sustainability
performance. This will include recruitment in public affairs and
influencing, marketing and media relations,
We will use research and data to
demonstrate how Bonsucro-certified We will progressively complement our centrally-
product and impact projects are enabling driven communications with more locally
manufacturers to meet their sustainability generated and adapted content, tailored to local
commitments, and we will identify and contexts and member priorities.
engage financial institutions and other
influencers to build market pull-through. There will be more production in local languages
to enable Bonsucro to get closer to members and
to facilitate more effective local dialogue.
DIGITALISATION & DATA
Where relevant to our change agenda, we
Technology will increasingly touch every will invest in influencing and communications
aspect of our organisation and our well beyond our member base, including with
work – including field-level and supply government, policymakers and the financial
chain innovation, tools for members, and sector.
our own knowledge management and
analytics capabilities. Digitalisation will We will look to leverage the connections of
drive operational efficiencies and unlock Bonsucro member companies, and to align our
significant value for those we work with. policy influencing with other ISEAL code compliant
members and like-minded organisations– to
The methods and outputs of Bonsucro’s improve access and effectiveness.
MEL programme will continue to improve,
as we strengthen both our human and While Bonsucro will remain essentially a
systems capabilities. business-focused organisation, we will evolve
our claims framework, brand assets and content
We will focus on collecting, analysing and library to facilitate our members’ consumer
reporting credible, longitudinal data on communications.
outcomes that track performance against
16 17MEXICO AFRICA
11. GLOBAL STRATEGY, ASIA PACIFIC
LOCAL IMPACT We aim to significantly grow the current base of We will assess the opportunity for growth
three certified mills - to accelerate the country’s in sugarcane growing countries across the
We will continue to increase new certifications
We are developing specific operational contribution to supporting smallholders, continent with an initial focus on Southern
throughout the region, providing support to
plans for each of our region and country reducing GHGs, improving water stewardship Africa as well as Côte d’Ivoire, building
current and potential members. We will also
programmes to achieve the Strategic Aims and protecting High Conservation Value Areas on the connections and interests with our
promote the concept of continuous improvement
within the Priorities set out in the previous (HCVA). certified mills and influential stakeholders.
with partners and stakeholders.
sections. Our work on the ground will be
To help achieve this goal we will actively promote We aim to see two more mills certified in
consistent with the global actions but tailored We will drive the development and rollout of a
best practices from certified mills elsewhere in Mauritius, and mills certified in South Africa,
to optimise impact at the local level. more progressive approach in India and Thailand
Latin America. eSwatini and Cote’d Ivoire. We will pilot the
to enable access to the benefits of certification for
stepwise approach, including in East Africa.
We will step up collaboration between brands, many more farmers.
Through regional and country stakeholder financial institutions and mills and farmers on
workshops, and several years of experience We will collaborate with partners such as
market uptake of certified products – including We will continue to grow the number of Bonsucro-
of programme management in some of the banks, AWS, farmer organisations and
impact projects focused on smallholder farmers to certified mills to increase our contribution to
largest sugarcane producing countries, our governments, to improve water management
increase certified volume and area. protecting the environment. We also plan to
Regional teams have identified ways in which at farm, mill and landscape level, and we will
convene up to ten impact projects involving up to
they can deliver each of the Specific Aims. collaborate with mills and supply areas in
We will do this in close coordination with mills that 5,000 smallholder farmers focused on reducing
Africa to reduce their GHG emissions in line
are willing to support their sugarcane suppliers. GHGs and improving water stewardship.
These are just a few examples. Many more will with the Paris Agreement.
follow as the regional strategies are elaborated We will develop or support projects aimed at In Australia, we will continue to engage with
in 2021. improving workers’ conditions and human and We will build on the Good Practice, Better
members, stakeholders and local standards to
labour rights through a sectoral approach. Finance project in South Africa, which aims
implement and continuously improve the Bonsucro
to help financial institutions offer incentives
standard. We aim to deliver on improving
We will seek to build on the best practices in the for sustainable agricultural and business
BRAZIL environmental impacts, working with stakeholders
region based on the BPS and the BPSS, and to practices.
on climate change mitigation, water stewardship
develop tools and resources to support others to
We will increase certification from the current and regenerative agriculture in sugarcane
comply with those standards. We will work with partners to increase
base of 75 certified mills, engaging up to eight production and milling, through collective actions
awareness of modern slavery in the
more into membership and the certification and knowledge-sharing.
sugarcane sector, to improve human rights
program, so they can contribute to and working conditions, and to provide
strengthening human rights and decent work In terms of social and labour priorities, we will
CENTRAL AMERICA training and guidance for both employers
practices in sugarcane farming and milling. convene strategic partnerships in India and
and employees.
Thailand to address some of the most pressing
We plan to expand our current base of 18
We will seek to minimise the cost and time issues including modern slavery and child labour,
certified mills, engaging up to 10 more mills into
pressures of certification for producers, working with credible and impactful partners. We
membership and the certification programme, to
and boost their return on the investment, by Photo Credit: Ed Kashi will collaborate with other ISEAL code compliant
maximise the region’s contribution to GHG, water
developing joint certification protocols with members to provide education and training on
and HCVA metrics.
consolidated certification schemes such as human rights and Decent Work.
RenovaBio. We will recruit farmers’ associations as members
and support them through certification to help We will monitor compliance among members
We aim to deliver on improving environmental improve the environmental impact of sugarcane in and ensure zero tolerance for forced labour an
impacts, working with our members and the region. child labour, safer working conditions and gender
stakeholders on climate change mitigation empowerment as part of our ‘Promoting Workers
and resilience in line with the UNFCCC Paris We will ensure that there is no sugarcane and Community Voices’ project.
Agreement. expansion on HCV land and forests and that all
members adhere to the cut-off-date of January
We will partner with financial institutions with 2008 in compliance with EU RED.
a view to helping Bonsucro certified operators
access sustainability-linked financing. We will expand the implementation of the Water-
Rest-Shade protocol, initially developed to help
We also plan to convene the sector around protect sugarcane cutters in Nicaragua from the
Payment for Environmental Services (PES) risks of working under intense heat.
to encourage landowners and farmers to
implement good agricultural practices and We will also use the Bonsucro platform to step up
protect the environment. Our goal is to work collaboration with civil society organisations to
with partners to implement at least one PES drive progress on human rights and Decent Work
project in this strategy period. across the sector.
18 19TEAM
12. GROWING WITH THE STRATEGY We will remain a relatively lean organization while progressively doubling in size to around
38 full time equivalent staff by 2026 and adding new capabilities to enable us to deliver on
our ambitions.
As we execute our strategy, we will enhance Bonsucro’s capabilities in governance,
people and systems while exercising high standards of organisational leadership and
Most of the growth in personnel numbers will be in
management. We will ensure and promote diversity and equality throughout our work and
producer countries. This planned growth allows for: “By having more people
our organisation.
- The Chief Executive to dedicate more time to external in the regions, we can
representation to build Bonsucro’s reputation and reach be in close contact
and provide better
- Scaling up Bonsucro’s presence in the largest sugarcane- customer service to our
producing countries to drive national acceleration programmes members. We need to
Bonsucro will remain a multi-stakeholder initiative, with broad-based and diverse and convene the sector around sustainability in line with national strengthen our technical,
stakeholder participation in policy, strategy and implementation. We will manage our growth priorities communications and
by building capacity at the centre and in the countries where we work, with a more cohesive market capacities
and effective structure and increased devolution from the centre. - Investment in membership support globally and locally regionally.”
(Bonsucro staff member)
- Strengthening our capability by recruiting experts in policy,
BOARD monitoring, learning and evaluation, and building our capacity in
climate change, human rights, data management, project funding
The Board is ultimately responsible for Bonsucro’s strategy and direction, while delegating and management and impactful communications.
the day-to-day operations and management to the CEO and Secretariat Team.
The Board is supported by the Members’ Council, which ensures that our members have a
strong voice in developing strategy and policies, and the Technical Advisory Board, which SYSTEMS
advises on the Bonsucro Standards and assurance mechanisms, and on how we should
measure impact. We will invest in strengthening our operating systems to improve efficiency and
effectiveness, focussing on priorities including:
Figure 3: Bonsucro Governance Structure - Strengthening our data collection and management with a focus on generating evidence of
impact
- Developing Bonsucro Connect, our online tool that enables users to monitor and demonstrate
sustainability in their supply chains
(Legal Members) M = D D D D D D D - Continually renewing the Public Quality Management System Library to improve access to key
reference documents supporting the Bonsucro Assurance System
Pay
Governed by articles of
membership - Assessing Bonsucro certification requirements against other sustainability initiatives
fees Support
association, which are Bonsucro Limited (company limited by guarantee
members
determined by the Legal
Members
Governed by terms of Governance Finance & Technical Elect 15 individuals
reference, which are & Members to the MC; MC co-
Risk Advisory
determined by the Legal Nominations Council opts up to 10 further
Committee Board
Members Committee individuals
Photo Credit: Raízen
20 2113. FINANCE & CONSULTANCY, DATA & ANALYTICS CREDIT TRADING
FUNDING We will invest significantly in data, We believe in the long-term potential of credit
analytics and knowledge management. trading and plan to strengthen both its value
Bonsucro’s financial position at
proposition and promotion to potential buyers.
the start of this strategy period is
This will enable us to add value to
sound. We have a strong profit & loss
members, and to monetise new data Since we introduced credit trading, some of
statement, healthy financial reserves,
products or services either in their own our Brand members have already made it an
good currency management and a
right or as the basis for consultancy integral part of their sugar sustainability strategy.
good level of unrestricted funding to
work. Participating mills and farms also understand
finance our core operations.
its value to them. However, the model remains
By the third year of the Strategy, we unproven for many others.
anticipate growth in overall consulting
revenues from a relatively low base. As Income from credit trading helps fund impact
we expand our activities, we expect to projects – typically capacity building and other
use a mix of in-house staff and third- sustainability initiatives focused on selected
party consultants and contractors. smallholder farmers and mills. Credit trading will
become increasingly important in funding our
We have robust financial controls that
organisational growth, while amplifying our field-
we will further adapt and strengthen as
level impact in sugarcane producing areas.
we devolve more decision-making and
activity to the regions. Our ambition
to roughly double the size of our team
by 2026 will require a broadly similar
growth in income. PARTNERSHIPS & GRANTS
EVENTS & TRAINING
Our strategic priority to convene the sugarcane
sector around critical challenges (such as climate
MEMBERSHIP FEES We foresee annual growth in events
change, water and human rights) provides a clear
and training, with more emphasis on
focus for proactive fundraising by Bonsucro - as
Overall, we expect to maintain our remote and virtual participation.
well as opening up more inbound and reactive
historic revenue growth rate in
opportunities from partners.
membership fees at around 10% per We will move to a mix of physical
year, subject to further investment and virtual events, with more activity
Project partners will include end users, producer
in the resources needed – especially devolved to key producer countries.
members, other ISEAL code compliant organisations
regionally – to service and recruit
and academic and research institutions.
members. Our main event will continue to be
Bonsucro Global Week, a major
We anticipate maintaining the price stakeholder forum, held annually but
of membership at current levels, while postponed in 2020 due to COVID-19.
improving value delivery.
Our online academy delivers technical ALTERNATIVE REVENUE STREAMS
Our penetration of relevant large training for certification bodies and
international companies is already high, training providers as well as members We believe that we can fund our ambitious growth
so growth in membership numbers will and potential members. targets for 2021-26 without changing our business
come from small to medium traders model in the medium term.
and buyers, and from producers and We also offer private bespoke training
mills in the key origins where sugarcane events to members and expect training Longer term, however, we will also look at the
is produced (mainly Brazil, India, revenue to grow in line with market feasibility of adopting other approaches, such
Mexico, Thailand and China). demand for certification, with more as volume-based fees, that work successfully for
emphasis on local languages and comparable organisations.
tailoring with local knowledge.
Volume-based fees, levied on production and
paid by end users, could help reduce financial
dependency on a few large end users and could
fairly incentivise uptake, for example by offsetting
against membership fees.
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