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Success Stories: Standards Transfair
Issue(s) you addressed?
Conventional market mechanisms have failed to provide farmers and farm workers across the developing world with fair prices and livable incomes from their products. Most farmers and farm workers are isolated from global markets and market information leaving them vulnerable to market volatility and exploitative local intermediaries. The human, economic and environmental consequences can be devastating.
Fair Trade is an innovative market based model that gives farmers and farm workers direct access to global markets, together with the tools and resources to succeed in them. Fair Trade combines the most rigorous income and labor standards of any product certification system with stringent environmental criteria. As the only third-party certifier of Fair Trade products in the United States, TransFair works with a network of more than 500 US companies, with producer organizations representing as many as 1.1 million farmers and farm workers around the world, and with consumers and civil society allies to build a more equitable and sustainable model of international trade. TransFair USA audits transactions between US companies and producers to guarantee that more of every dollar spent on Fair Trade Certified products goes back to farming communities that need it most. By promoting Fair Trade in the US, TransFair USA promotes responsible business practices and gives American consumers a way to support global equity and sustainability with their everyday purchases. The Fair Trade model achieves results by aligning the interests of producers, industry and consumers in pursuit of common social, economic and environmental goals.
1) The growth of Fair Trade in the US market has been dramatic, averaging more than 75% per year since 1999. Ensuring that the Fair Trade producer network will be able to meet this rising demand with the consistently high quality products that the US market requires, remains a major concern of TransFair USA and all stakeholders in the Fair Trade system. To meet this challenge TransFair USA will require substantial investment in an expanding program of capacity building and other services to producers. 2) Consumer label confusion-as Fair Trade Certified products become more popular, company and industry self-certification efforts seek to capitalize on the growth of the socially responsible consumer segment by mimicking the language of Fair Trade without the guarantees. This may create consumer confusion and cynicism of legitimate 3rd party certification efforts. 3) Green-washing-As Fair Trade Certification grows and larger national and international companies respond to consumer demand for Fair Trade products, the issue of label credibility becomes more acute. On the one hand TransFair cannot work to transform the way companies do business unless we engage with them. On the other hand, TransFair wants to protect label credibility and charges of green-washing by ensuring that companies that sell Fair Trade Certified products commit to more than a token effort. Finding the appropriate balance is an ongoing challenge for TransFair and all stakeholders within the Fair Trade system.
Since 1998, we have certified over 90 million pounds of coffee enabling Fair Trade farmers to earn over $66 million in additional income. Fair Trade Certified products can now be found in more than 33,000 retail outlets across the United States, from specialty coffee shops to national grocery chains. Additionally we have expanded our certification beyond coffee to other products including tea, chocolate, fresh fruits, and most recently, rice and sugar. This expansion brings the benefits of direct, equitable trade to new communities in new countries around the world. The additional Fair Trade revenues received by democratically organized producer groups supports uniquely sustainable, decentralized economic and community development programs. These programs include schools & scholarships, health services, women's leadership programs, microfinance, reforestation, organic conversion and a host of others. Our goal within the next five years is dramatically expand the scope of Fair Trade in the United States, ultimately empowering the growing global producer network to earn at least $150 million in additional income per year.
Issue(s) you addressed? Help to reform the International Organization for Standardization (ISO) to make it more accountable to (and inclusive of) affected stakeholders, including developing countries and civil society organizations.
Worked with other NGOs (e.g., IISD, ECOS, EEB, WWF European Policy Office, Ecologia, DN) to: [see “achievements” below]
1) Institutional inertia/comfort with the status quo; 2) Legal threats/challenges to actions that threatened revenue streams for ISO and its member bodies; 3) Capacity/awareness building for NGOs and foundations
Successfully: 1) advocated changes in the procedures for standards development in key ISO committees; 2) gained approval to publicly disseminate draft ISO standards that have policy implications; 3) had the issues of stakeholder and developing country involvement raised to highest strategic policy/planning levels within ISO, and 4) Increased awareness in NGO community of the implications of ISO and its standards.
Issue(s) you addressed? No standard report for social investors or public interest advocates on corporate environmental or social performance What did you do to achieve results? (If applicable, you may want to mention partners here.) Funded CERES to convene stakeholders for what became Global Reporting Initiative. Funded WRI for what became Greenhouse Gas Protocol Initiative Challenges you faced and/or still face? Social indicators in GRI are not as solid as environmental indicators. GRI itself is under resourced. GHG protocol needs to continue to be taken up by stakeholders. I'd need to do more. Achievements--current and/or anticipated? 1) Canadian GHG challenge registry used GHG protocol corporate standard. 2) Australian GHG Challenge Plus Program Uses GHG Protocol Corporate Standard. 3) Tata Chemicals (India) uses GHG Protocol for its corporate inventory. 4) Ford and Pemex (world’s third largest oil company) joins Mexico GHG Pilot group. 5) Mexico GHG Program Pilot Group established.
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