3.2.5

Principle 3: Fair and equitable sharing of benefits derived from the use of biodiversity

Criteria Guidance Evidence & Scoring Importance & Applicability
Criteria 3.2: Criteria 3.2: Discussions to establish the terms of cultivation or collection activities promote dialogue, trust and long-term collaboration


3.2.5

In case of high levels of producer dependency on the natural raw materials, strategies are in place to minimize any significant negative impact of the termination of sourcing relationships on producers and their communities in cultivation and wild collection areas.



 This strategy may include the empowerment of producers/collectors aimed at looking for other market opportunities or income diversification to reduce dependency to the OaS and to the activity itself (this can also be the diversification of commercial offers around the raw material: processed raw material with added value, touristic or handicraft development, etc). For termination of long-term sourcing relationships, precautions should be taken such as a medium or long advance notice as much as possible (e.g. at least three months before harvest time)and providing support when only a short notice period is possible. A transparent termination clause in a supplier agreement should be stated in writing and agreed upon between parties. When sub-suppliers are negotiating and directly involved in pricing with producers, this requirement will also apply at their level. This indicator is applicable to the relationship between OaS and producers, when they're both involved in the scope of the assessment. If the OaS is the producer in the supply chain, this indicator is not applicable.

DOCUMENTATION


  • sourcing/supply agreement with local producers/collectors with clause for termination of supply relationship
  • written notices for termination of long-term sourcing relationships on communities in sourcing areas
  • documents related to empowerment of producers/collectors whose aim would be to decrease dependency on the sourced ingredient
  • documents related to support to producers/collectors after short notice on termination

    INTERVIEWS

    with OaS and producers/collectors:


  • on clause for termination of supply relationship, negotiations on this clause, support provided, empowerment to decrease dependency and occurrence of these situations (termination of supply agreement) and justifications when relevant
    • Scoring guidance

    0 - No strategy in place to minimise any significant negative impact of the termination of long-term sourcing relationships on communities in sourcing areas, or short notice for end of supply agreement without any support for vulnerable producers/communities
    1 - OaS/buyer tries to anticipate these situations for most vulnerable producers/collectors, but this is not stated nor agreed between them, and/or no fully established strategy in place to try to minimise negative impacts on the communities in sourcing areas
    2 - Precautions are taken for long-term sourcing relationships (no short notice unless force majeure, and support provided on a case-by-case basis). Terms for termination of supply agreement have been agreed
    3 - Scoring 2 applied, and a transparent clause for termination of supply agreement is stated in written and agreed between parties. Moreover, strategies to empower producers/collectors and reduce dependency are in place (see guidance)
    N/A - OaS is not working with external producers or they are not part of the scope, or there is not high dependency of producers on the OaS (please justify).
    Score 2 to be reached by second year

    		 Importance
    Regular stepwise


    Applicability
  • Cultivation & wild collection
  • OaS
  • Sub-suppliers
  • Field operators
    		•

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