EU Code of Conduct, responsible business and marketing practices or greenwashing?

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The European Commission officially unveiled the EU Code of Conduct on Responsible Business and Marketing Practices in the Agrifood Supply Chain on 5.7.21. (1) With the purpose of defining commitments that operators can make, on a voluntary basis, to improve and communicate concrete actions on the sustainability front. From farm to fork?

The approach proposed by the Brussels executive, as noted above, (2) exposes the initiative to the real risk of European public patronage of greenwashing activities. That is, to the partial and/or distorted display of inadequate commitments to qualify the relevant supply chains as actually sustainable. (3) An in-depth study.

Sustainability of agrifood supply chains, the notion offered by FAO

FAO, Food and Agriculture Organization, is the UN agency that has always been dedicated to ensuring the universal right to safe and healthy food. Over the past decade, under the directions of Jose Graziano Da Silva and Professor Qu Dongyu, FAO has devoted a great deal of attention to the issue of sustainability of agrifood supply chains and related investments. Thanks also to the valuable work conducted by its Committee on World Food Security (CFS), as well as synergies with the UN and OECD. (4)

A ‘sustainable food system is a food system that provides food security and nutrition for all in such a way that the economic, social and environmental foundations for food security and nutrition are not compromised. This means that:

(i) the system is profitable overall (economic sustainability);

(ii) has broad benefits to society (social sustainability);

(iii) has a positive or neutral impact on the natural environment (environmental sustainability)‘. (5)

EU code of conduct, a short story

The draft EU Code of conduct on responsible food business and marketing practices has a short history, beginning in December 2020 with a technical meeting of the confederations representing the various sectors (agriculture, industry and distribution) and input from a number of NGOs.

On 2/26/21 work was opened by EU Commission Vice President Frans Timmermans, along with Commissioner Stella Kyriakides (health and food safety) as well as MEPs Sarah Wiener (Austria, Greens) and Herbert Dorfmann (Italy, European People’s Party), speakers on the strategy Farm to Fork To the ENVI and AGRI Committees of the EU Parliament, respectively.

On 5.7.21 the Code of Conduct was formally adopted, with the option for any operator and/or branch and/or supply chain representation to freely adhere to it. A short story for a simple label, it is easy to argue, given the complexity of the entire industry and the countless variables that characterize it. (6)

8 guiding principles

The EU Code of Conduct is based on 8 very general guiding principles:

1) compliance with current regulations,
2) Positive, two-way collaboration among the signatories. Horizontally, between operators in the same industries, and vertically between entity operating at different stages of the supply chain. Or again, on different spatial dimensions (international, regional and local),
3) bona fide and collegiality,
4) Inclusion,
5) scientific foundation,
6) Ensuring food safety,
7) Transparency and trustworthiness,
8) active participation.

7 ‘inspirational’ goals

The EU Code of Conduct then sets 7 ‘inspirational’ goals, which are equally generic and essentially undefined in their concrete application:

1) Healthy, balanced and sustainable diets for all European consumers,

2) Prevention and reduction of food loss and food waste,

3) Climate neutrality of the European food supply chain by 2050,

4) ‘Optimized’, circular and efficient management of resources,

5) Sustained, inclusive and sustainable economic growth, employment and decent work for all,

6) Sustainable value creation in the food supply chain through forms of partnership,

7) Sustainable sourcing in the food supply chain.

The sub-goals-far from being inspired by the sub-objectives of the Sustainable Development Goals (SDGs. See notes 7,8), but of quite a different mildness-then hypothesize various possible actions, in the three phases of procurement, processes and final consumption.

Sourcing from sustainable supply chains

The commitments outlined in the Code of Conduct should in principle apply only to production and trade activities conducted in the EU. With the exception of sourcing criteria from sustainable supply chains, which, of course, cannot neglect international trade. (9) Where to date, the domestic market is the primary trading platform for agricultural commodities globally, with food commodity imports critical on both social and environmental fronts (e.g., the soy, palm oil, meats, etc.).

Goal 7 therefore proposes to draw on food raw materials that do not contribute to deforestation and degradation of natural habitats, so as to preserve the biodiversity of ecosystems. Also improving the ‘social performance’ of procurement. With encouragement to adopt socio-environmental sustainability certifications, which, however, have already been shown to be unreliable overall. (3)

EU Code of Conduct, Paris Climate Agreement, SDGs

The European executive relates the 7 goals, of course, to the commitments made in the Paris Agreement on climate change (10) and the 17 Sustainable Development Goals (SDGs) in UN Agenda 2030. Particularly at SDGs 2 (zero hunger), 3 (good health and well-being), 4 and 6(clean water and sanitation), 7 (cheap and clean energy), 9 (industry, infrastructure and innovation), 12 (sustainable production and consumption), 13 (climate action), 14 (protection of the seas), and 15 (biodiversity).

Some of the Code’s goals (such as No. 6) then respond, in theory, to the primary social needs of addressing extreme poverty, ensuring dignity of labor, promoting economic growth and reducing inequality (SDGs 1, 8, 10). Finally, the ‘inspirational’ goals contained in the European Green Deal (11) and the EU Strategies are recalled
Farm to Fork.
, Biodiversity 2030. In addition to the European Cancer Plan.

Measurability, horizons, reporting

Entities adhering to the EU Code of conduct should present concrete, qualitative and measurable commitments. Taking into account the social, environmental and health priorities that their activities are expected to address. Indeed, the principle of non laedere requires that intervention on a single dimension or area should not neglect the impact of business activities on other areas.

Commitments made must be set out in a document, with justification for the priorities identified and definition of the indicators chosen to measure progress. (12) Business commitments synchronize with European and international ‘timetables’ geared to 2025-2030 and 2050 carbon emissions.

In April of each year, each signatory is required to submit a concise and timely annual report on the progress of the commitments made in the original document. Simplification adjustments are planned for SMEs, which will be able to report progress biannually.

Governance

The governance established to oversee the Code of conduct, should in turn meet the guiding principles of inclusiveness, positive collaboration, good faith, transparency and active participation. The system is structured as follows:

– a ‘collaborative platform,’ open to all relevant social partners and authorities, has an ‘advisory’ role, as well as promoting partnership and disseminating best practices,

– the ‘signatory group’ has a decision-making function and the power to revise and update the code upon the proposal of the liaison group,

– the ‘liaison group,’ composed of the signatory group and the European Commission, has a ‘preparatory’ and interlocutory function between the signatories and the Commission.

Without needing to mention extensive literature on the subject of governance, its deficiency in a mechanism that relegates the stakeholders to the mere role of spectators, reserving decisions for those who profess sustainability, with the endorsement of a political body that has always privileges the instances of Big Food e Big Ag.

Signatories

There are 65 initial signatories to the EU Code of Conduct , including 24 associations and 41 groups (26 food industries, 14 distributors, 1 food service). The inevitable FoodDrinkEurope, FoodServiceEurope, Euro Coop, Copa-Cogeca, CEEV(Comité Européen des Entreprises Vins) and various others are joined by Italy’s Federpesca. Among the rest large industry and distribution groups-as well as Nestlé, Coca-Cola,PepsiCo, Danone, Unilever, Mondelez, Ferrero, Syngenta, Metro AG, Carrefour, Decathlon, Tesco, etc. – Coop Italia and Barilla stand out. (1)

Greenwashing, the risk at the corner

‘Although civil society supports an ambitious agenda that is accepted by business leaders, there are areas of the Code that remain troubling and risk making it confusing.

To enable effective and equitable transformation towards sustainable and healthy food systems, regulatory measures that set common goals for all should be the main drivers of change’ (Milka Sokolovic, European Union Public Health Association, EUPHA).

British pragmatism teaches how a well-structured guideline can put an end to shameful greenwashing practices that mislead consumers and pollute competition. (13) But that aspect, ça va san dir, escapes Mr. Timmermans’ exercise.

Dario Dongo and Giulia Orsi

Notes

(1) European Commission (2021). EU Code of conduct on responsible food business and marketing practices. A common aspirational path toward sustainable food systems. https://ec.europa.eu/food/system/files/2021-06/f2f_sfpd_coc_final_en.pdf

(2) Dario Dongo, Giulia Orsi. The EU code of conduct for an (in)sustainable agri-food supply chain. GIFT(Great Italian Food Trade). 3.5.21, https://www.greatitalianfoodtrade.it/idee/il-codice-di-condotta-ue-per-una-filiera-agroalimentare-in-sostenibile

(3) Marta Strinati, Dario Dongo. Palm oil, soybean, wood, coffee, cocoa. What is the purpose of sustainability certification? Greenpeace report. GIFT (Great Italian Food Trade). 5/16/21, https://www.greatitalianfoodtrade.it/certificazioni/olio-di-palma-soia-legno-caffè-cacao-a-che-serve-la-certificazione-di-sostenibilità-rapporto-di-greenpeace

(4) Dario Dongo. FAO, China in the lead. GIFT(Great Italian Food Trade). 6/27/19, https://www.greatitalianfoodtrade.it/progresso/fao-la-cina-al-comando

(5) FAO. Food systems. http://www.fao.org/food-systems/en/

(6) Dario Dongo, Susanna Cavallina. Unsustainable deforestation and commodity imports. Public consultation on the EU strategy. GIFT (Great Italian Food Trade). 4.4.21, https://www.greatitalianfoodtrade.it/progresso/deforestazioni-e-import-di-commodities-insostenibili-consultazione-pubblica-sulla-strategia-ue

(7) Dario Dongo, Giulia Caddeo. SDGs, the 6 revolutions needed. Study and comments. Égalité. 9/14/19, https://www.egalite.org/sdgs-le-6-rivoluzioni-necessarie-studio-e-commenti/

(8) Dario Dongo. SDGs, the dutiful transformations for the food supply chain. GIFT(Great Italian Food Trade). 9/19/19, https://www.greatitalianfoodtrade.it/progresso/sdgs-le-trasformazioni-doverose-per-la-filiera-alimentare

(9) Dario Dongo. ISO 20400, guidelines for sourcing from sustainable supply chains. GIFT(Great Italian Food Trade). 7.4.19, https://www.greatitalianfoodtrade.it/progresso/iso-20400-linee-guida-per-l-approvvigionamento-da-filiere-sostenibili

(10) Dario Dongo. Biodiversity and climate emergency, the common thread. Égalité. 13.2.20, https://www.egalite.org/biodiversita-ed-emergenza-climatica-il-filo-comune/

(11) Dario Dongo. European Green Deal, the new EU strategy. Égalité. 12/13/19, https://www.egalite.org/european-green-deal-la-nuova-strategia-in-ue/

(12) Recall, for example, the Ellen McArthur Foundation ‘s indicators on corporate circularity, Life-Cycle Assessment (LCA), or theEco-Management and Audit Scheme (EMAS)

(13) Dario Dongo, Giulia Orsi. Green claim vs greenwashing and misleading advertising, Antitrust guidelines in UK. GIFT(Great Italian Food Trade). 25.6.21, https://www.greatitalianfoodtrade.it/consum-attori/green-claim-vs-greenwashing-e-pubblicità-ingannevole-linee-guida-dell-antitrust-in-uk

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Dario Dongo, lawyer and journalist, PhD in international food law, founder of WIISE (FARE - GIFT - Food Times) and Égalité.

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Graduated in Law at the University of Bologna, now enrolled in the master of law of agri-food markets at the University of Turin. She is a practicing lawyer.