Supply Chain Restoration

18/05/23

The latest UN report on climate change shows us that there are viable and effective options for reducing greenhouse gas emissions and adapting to climate change. Likewise, supply chain restoration is a key practice in building a sustainable and responsible future. These methods can make a difference to the planet, but they must be implemented as soon as possible.

 

A few days after the commemoration of #InternationalMotherEarthDay, we would like to share with you a preview of the collaboration that ECOM Peru had with IUCN (International Union for Conservation of Nature) through a business case for the guide on the restoration of supply chains that will be launched soon.

 

The objective of this guide is to help agribusiness companies make better investment decisions in forest landscape restoration to maintain agri-food supply chains, reduce risks, increase resilience and improve yields.

 

 

So, what is supply chain restoration?

 

Supply chain restoration refers to the implementation of sustainable practices in the production and distribution of goods and services to reduce or eliminate net deforestation and other negative environmental impacts. 

 

This involves working with key actors in supply chains, from producers to consumers, to improve forest management, reduce waste, and promote responsible business practices. 

 

The ultimate goal is to achieve a net positive action in the fight against deforestation and other related environmental challenges. In this way, it will build a supply chain that enables companies to meet their production targets while minimizing their environmental footprint and promoting the well-being of people and local communities, ensuring long-term sustainability. 

 

 

And why is it important?

 

Supply chain restoration is important because it can help reduce the risks associated with nature loss and landscape degradation, which can negatively affect agribusinesses. 

 

Landscape restoration can increase local production and diversification, resilience to climatic and economic shocks, carbon sequestration, and enhance a range of other ecosystem services such as water quality and erosion control, pollinator numbers, and increased biodiversity. 

 

These benefits can contribute to sustainable supply while reviving rural economies and producing tangible benefits for nature and the climate. These benefits will improve the triple bottom line of business that refers to measuring business success not only in financial terms, but also in social and environmental terms. 

 

Other opportunities identified in cocoa agroforestry systems and improved management with these practices are: 

 

  • - Reduce soil degradation
  • - Carbon neutral supply chains 
  • -Diversify producers' income 
  • - Compliance with certifications 
  • - Increase resilience to droughts 
  • - Increase water infiltration 

 

 

 

What role does ECOM play in supply chain restoration?

 

As a leading company in the agricultural product's industry, ECOM is dedicated to restoring sustainable supply chains. It has a comprehensive sustainability strategy that focuses on four key areas: people, planet, prosperity and promise. 

 

In the planetary area, ECOM has several supply chain restoration projects, including: 

 

  • - Sustainable Farmers: Dedicated to working with local farmers to implement sustainable agricultural practices that improve soil quality, reduce environmental impacts and increase farmers' incomes.

 

  • - Climate-Smart Agriculture Projects: Develops climate-smart agriculture projects to address the impacts of climate change on agricultural production. The objective is to adapt and increase resilience to climate change while maintaining long-term productivity and profitability. 

 

  • - Working with Fair Trade: Works with fair trade certifications to improve the living and working conditions of farmers, guaranteeing a fair price for their agricultural products. 

 

What was IUCN's business case with ECOM "Towards a carbon neutral cocoa supply chain in Peru"

 

Carbon sequestration from agroforestry is one way to finance landscape restoration, which was ECOM's objective in Peru. The feasibility study focused on calculating the tons of carbon dioxide equivalent (tCO2e) of business as usual compared to restoration interventions. 

The cost-benefit analyses served as a model for other landscapes, based on the principle that carbon credits only take into account actions that add to what is already in place. 

 

ECOM's goal in implementing restoration measures was to improve supply chain stability through agroforestry by increasing tree cover, with positive landscape effects such as erosion control, as well as moving towards a carbon neutral supply chain and meeting the goal of becoming carbon neutral by 2050.

 

For cocoa farmers, the main objective was to diversify income, and to try to stabilize cocoa income by reducing the incidence of pests and diseases, and erosion control. 

 

Through these initiatives and sustainable supply chain restoration projects, ECOM is contributing to improving the quality of the environment, the lives of farmers and local communities, and ensuring a sustainable and high quality supply of agricultural products around the world. The IUCN guide will be published in the second half of 2023 and in it you will find the ECOM Peru case study.

 

 

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