Independent SRTP Consultants 1 Introduction Robin Crellin Management

Independent SRTP Consultants 1

Introduction Robin Crellin • Management of a Social Responsibility Programme that includes Biodiversity • Clients include BAT and 3 other large Manufacturers 2

What is SRTP? “Social Responsibility in Tobacco Production” A systematic and continuous approach to the improvement in Social Responsibility standards amongst tobacco suppliers. Based on BAT’s own “in-house” procedures for its own leaf Suppliers (no “double standards”). Constructed around Road Maps, Action Plans and On-Site Reviews. Emerging from an Earthwatch review of BAT’s own leaf Operations in East Africa in 1999. Revised in 2005 to include Biodiversity overtly (rather than implicitly as in original). 3

The 2005 Revisions • Reflect current policy • Introduce more measurables (‘metrics’) to ensure greater understanding of progress expected • Create clearer differentiation between levels • Extend range of Road Map elements to further clarify contemporary needs • Include elements of biodiversity 4

The New 2005 Road Map Elements 1. SOCIAL RESPONSIBILITY POLICY ROAD MAP 1. Formal Statement of the Group of Companies 2. Formal Statement of each Company 2. INTEGRATED CROP MANAGEMENT ROAD MAP 1. Tobacco Seed Quality Assurance 2 a. Integrated Pest Management (IPM) 2 b. IPM Safety 3. Soil Resource Protection 4. Water Resource Protection 5 a. Use of Wood and Other Fuels 5 b. Use of Wood for Tobacco Barn Construction 6. Biodiversity 7. Farmer Training • TOBACCO PROCESSING ROAD MAP 1. Occupational Environment 2. External Environmental Impact 3. Safety 4. Fire Prevention 5. First Aid, Medical Examination and Care 6. Sub-Contractors and Visitors 7. Vehicles • SOCIO-ECONOMIC FACTORS ROAD MAP 1. Minors in Crop Production 2. Farmers Standard of Living 3. Capacity Building in Processing and Extension Services 5

Rating Criteria of the Road Maps 4 4 3 Management to best International practice standards 2 1 Poorly managed High risk Reactive management Responds to disaster but does not plan Adequate and proactive risk management but does not manage all risks systematically 6

Biodiversity Road Map Wording The purpose of this Road Map is to recognise that agricultural practices should not result in a significant diminution in the range of fauna and flora which existed prior to tobacco production in the region and instigate remedial action to allow increased species diversity in balance with the economic needs of the farming community and the environment. See Biodiversity Guidelines. RATING CRITERIA 7. Biodiversity 1 Unacceptable/High Risk 2 Unsatisfactory /Medium risk 3 Satisfactory/Low risk 4 Best international practice/Minimised risk -No understanding or recognition of issues of biodiversity in tobacco growing, forest management or the supply chain - No documentation to explain the basic issue of biodiversity -No formal programme to address issues of biodiversity. -No clear plan developed. -Limited dialogue with Government and or local NGOs. - Basic assessment of operations and their effects on / relationships with main known national habitats and species within related legal framework. - Beginning of dialogue with farmers to gain understanding and apply principles of good biodiversity practice including all aspects of 2. 1 to 2. 6 above - Full assessment of biodiversity impacts, risks, opportunities and priorities. -A documented programme / strategy to avoid negative impact on biodiversity developed. - Stakeholder consultation (with NGOs, Local Communities and Government) on programme/strategy completed. - Implementation of the work programme/strategy commenced. - Appropriate monitoring system developed. - Indicators on biodiversity set, published and reported on internally. -A documented programme/ strategy to have a net positive impact on biodiversity in the region is applied - Biodiversity indicators reported on annually to external stakeholders (e. g. through Social Report). - Monitoring system implemented, integrated and fed back into the management of 2. 1 to 5(b) above. - All aspects of the operations managed with considerations for biodiversity - Biodiversity informs the decision making / business process 7

The Action Plan A bulleted list of specific Actions to be taken that can be ticked off as completed, and which will lead from the current level towards the next level up. REASONS FOR CURRENT LEVEL @ 2005 ACTION PLAN 2006 ACTION PLAN 2007 4. SOCIO-ECONOMIC FACTORS (reasons & plans to be shown as a bulleted list with quantities or percentages, where relevant) 4. 3 Capacity Building in Processing & Extension Services Current Road Map Level (end 2005): _____ Expected Road Map Level (end 2006): _____ Expected Road Map Level (end 2007): _____ Reasons & Plans: Responsibility : (name/job title) 8

The On-Site Review Two days, with a team of two, one day mainly focussed on Agronomy, the other on Processing and Policy. Evaluation based on hard evidence only – what you see and the documents you read. Most specifically NOT an audit, which would require a larger team for a week to cover certain map elements only. Objective is to determine whether Self-Assessment is being conducted accurately. Secondary objective is to advise, explain and ensure proper understanding of issues and procedures. 9

Outcomes Manufacturer obliges its Suppliers to participate in the SRTP Programme and demonstrate continuous improvement Reviews verify that the improvements are being delivered and Returns are accurate Annual reports from Leaf. Tc concerning Self-Assessment Returns and Reviews quantify the raising of standards Average level has risen from 2. 5 to 3. 0 between 2000 and 2004 - from “Reactive+” to “Pro-active” – but not (yet) to “Best Practice” Levels achieved can be linked to specific outcomes for each Map Element by revisiting the Road Map requirement for each level 10

Only Tobacco? The System rarely refers to tobacco specifically and should be applicable: • in whole, to any crop which undergoes subsequent processing • in part, to the growing of any crop • in part, to the activities of any processing plant Leaf. Tc seek to diversify their activities outside of tobacco. 11

The Challenge Leaf. Tc expects many Suppliers to forge links with local NGOs to enable these Suppliers: • to identify suitable indicator species and methods • to conduct monitoring programmes • to provide data on the growing region to the NGO BUT Leaf. Tc looks to the Partnership to provide this assistance to Suppliers who operate where there are no appropriate local NGOs 12

The Opportunities 1. Impact on biodiversity in Tobacco production areas: - circa 150 Tobacco Suppliers in circa 50 countries around the world - linked to circa 1, 000 growers (with extremes of smallholders and large sophisticated farmers) - with a structured and monitored SRTP (including biodiversity) 2. Diversification to other crops/industries: - Leaf. Tc needs links into other Agro-industries - SR(T)P programme can then be diversified - this structured and monitored SR(T)P (including biodiversity) can be promoted more widely and possibly avoid “audit fatigue”. 13

Contact Us Thank you for your time, and we hope that this presentation has been useful to you, and that you can assist us in grasping the opportunities! For more information about Leaf. Tc or any of the topics covered today, please contact: Robin Crellin 01202 701889 www. leaftc. com robin@leaftc. com 14