Dear colleagues,

The theme of the 2023 international biodiversity day highlighted the need to move ‘from agreement to action.’ And we are proud to see another year full of action on sourcing with respect for people and biodiversity for UEBT and its members. In 2023, 176 UEBT members worked to improve practices in more than 1,100 supply chains in over 70 countries. Cultivation or wild collection practices were verified or certified in more than 550 supply chains around the world.

A few points to highlight as we close the year and look ahead. With growing corporate attention on nature and emerging rules on supply chain due diligence, UEBT has an incredible opportunity to harness momentum and drive significant impact on the ground. At the same time, we need to work together with UEBT members and partners to consolidate, enhance, and scale up our work. This is happening at various levels, from inside the organisation to across economic sectors.

In 2023, the UEBT team continued to grow in number and areas of expertise. We now have an internal, internationally recognised expert on supply chain human rights to further develop UEBT knowledge, tools and processes on these, as well as to continue developing a network of local experts in key sourcing countries. In 2023 the UEBT team grew to almost 50 people, including, since 2023, a local country representative in Turkey.

Regulations regarding supply chain practices are evolving, from green claims and deforestation to corporate sustainability reporting. In response UEBT further stepped up its work to support effective due diligence by its members. This has included improvements to our suite of tools, as well as the launch of a new project to promote responsible sourcing due diligence and purchasing practices in herbs, spices and fragrance supply chains in India and Egypt, with support of the German Due Diligence Fund.

Of course, identifying and managing risks is not enough. Our report on “Sector Transitions to Nature Positive: Deep Dive on Beauty and Biodiversity” in collaboration with the World Economic Forum, highlighted the need for much more ambitious and positive actions – from concrete targets on biodiversity along supply chains to partnership on the ground. UEBT is pleased to support a number of projects in sourcing areas to drive further impact on the ground. Take for instance the our work on Vanilla in Madagascar, Cassia in Vietnam, Babasu and Carnauba in Brazil, Boswellia in India, or Rooibos in South Africa.

Finally, we recognize that sector transformation may be an important driver of change. That is why in 2023 we launched the International Fragrance Association (IFRA)-UEBT Responsible Sourcing Initiative, a unique platform for information exchange and pre-competitive collaboration to identify risks and jointly advance responsible sourcing in key natural raw materials used in fragrance.   

We are grateful for the continous support and commitment of our members around the world, and of partners such as GIZ which is working with us on projects in Brazil, Egypt, India and Southern Africa.

This is a solid basis on which to rise to the challenge of sourcing with respect for people and biodiversity. We look forward to step up ambitious and impactful collaboration with all of you in 2024.

 

Eder Ramos, UEBT Board President

Rik Kutsch Lojenga, UEBT Executive Director

 
 

Membership reaches 176 companies

  • In 2023 UEBT's very fast membership growth of previous years began to slow down slightly (allowing us to catch our breath!) but we still welcomed more than 30 new members during the year, reaching 176 members total, from countries as diverse as Brazil, Bulgaria, Chile, Comoros, Italy, India, Madagascar, New Zealand, Nigeria, Tunisia, Turkey, Spain, Vietnam, and the United States, among others.

  • This included international processors and brands such as The Body Shop, Biolandes, Patyka, Pernod Ricard and Jasmine Concrete, among others.

  • 2023 showed us that more than 70% of UEBT membership made up of local companies including farmers, cooperatives and local processors. The wide geographic, sectoral, and natural raw material diversity of these companies is one of the strengths of UEBT.

 

UEBT Membership brochure

This brochure explains what UEBT commitments UEBT members make, the scope and process to become a member, and benefits of being a UEBT member.

 

New members in 2023

 

Why do you think more and more companies including many brands are willing to join UEBT?

Companies that became full UEBT members in 2023.

See all members here.

Lien Hanh (UEBT SouthEast Asia Representative) on the ground for a project identifying regenerative farming models for cassia with Jan Gilhuis Senior Manager for Sustainable Spices and Sustainable Vanilla programs at IDH.

 
 

A basis for improvements in the field

UEBT experts led more than 100 field verifications in 2023 in our field verification programme.

In our certification programme, the transition from Rainforest Alliance and UEBT/UTZ to the new UEBT/Rainforest Alliance herbs and spices programme was successfully completed. The herbs and spices programme is growing steadily in number of certifications and certified volumes.

The UEBT field verification programme is focused on providing understanding and improvement of sourcing practices of botanical ingredients while our certification programme provides an external assurance by a certification body and is a more traditional approach that can be appropriate for some supply chains and especially if consumer-facing on-pack claims are desired. Both field verification and certification at UEBT uses the UEBT standard, which is a multi-stakeholder developed set of criteria and indicators for harvesting or growing botanical ingredients in ways that respects people and biodiversity. UEBT’s field verification programme is not a certification scheme and does not allow any consumer-facing labels. UEBT's certification programmes, including the ingredient programme and the herbs and spices programme with Rainforest Alliance allows for use of a consumer-facing label.

Botanicals are plants and other unique raw materials derived from biodiversity. For UEBT, the term covers plant parts – such as roots, flowers, fruits – or other material or compounds from animals, fungi, or microbial organisms. These ingredients may be used as herbs and spices or in compositions and ingredients used for medicinal, flavor, fragrance, dietary, cosmetic, or other purposes. We distinguish botanicals from agricultural commodities, which also derive from biodiversity but are grown and traded on a large scale, often interchangeably.

Brochure on UEBT programmes

All programmes follow a continuous improvement approach, with some focused on reducing negative impacts and others focused on contributing to positive impact. Companies choose which programmes best meet their strategies.

 

UEBT presents field verification assessments reports with companies requesting verification, outlining strengths and improvement points found in assessments. These reports are the basis for improvement and aim to facilitate discussions between companies and their business clients to leverage joint action. (Photo credit: Enio Bonchev, UEBT member since 2022)

 

Improving transparency in supplier-client discussions

In 2022, UEBT’s field verification programme began to provide more official documents, which we call ‘attestations’ to provide insight into practices and to facilitate communications at the business-to-business level.  Basic information had been provided on these documents including the scope of the assessment, and any level reached in terms of the UEBT standard’s requirements.

In 2023, UEBT identified the need for additional improvements to attestations to improve transparency.  These plans began in 2023 and will be rolled out more systematically in 2024 and include adding information on when an action plan is required, including measures required and the time period for addressing any risks or impacts.

This continues to support the UEBT commitment to discourage buyer disengagement from challenging supply chains, and instead to encourage buyers to support their suppliers in the prevention or mitigation of adverse impacts or risks, including through directly supporting such actions, and/or together striving for continuous improvement.

UEBT team in the field in 2023

 
 

Priority actions for the beauty sector

In 2023, companies in various sectors increased their focus and commitment to nature strategies. For companies working with botanicals, this is an opportunity to up and showcase their leadership and work on sourcing with respect for people and biodiversity. How to do this in the beauty sector? Based on its knowledge and experience, as well as insights from leading beauty companies and experts, UEBT identified three priority actions:

 

UEBT’s Maria Julia Oliva shares urgent actions from the ‘Deep Dive’ report with companies gathered at the UEBT conference.

 

Sector transitions to Nature Positive: Deep dive on beauty and biodiversity

This UEBT report takes a deep dive on beauty and biodiversity, looking at key issues and priorities actions for companies in the beauty sector in their journey to nature positive. It was prepared in coordination with the World Economic Forum (WEF) guidance document “Nature Positive: Role of the Household and Personal Care Products Sector.”  It builds on years of UEBT experience working in the beauty sector, as well as conversations with leading companies, from brands and ingredient suppliers to fragrance houses and local producers, as well as industry experts.

 

Supply chain due diligence to drive change 

 

2023 was an important year for supply chain due diligence, with the entry into force of the German Supply Chain Due Diligence Act, the enactment of the EU Deforestation-Free Products Regulation, the political agreement on the draft EU Corporate Sustainability Due Diligence Directive, and the update to the OECD Guidelines for Multinational Enterprises on Responsible Business Practices. UEBT continues to support companies with practical supply chain due diligence tools to identify and manage natural raw material risks.

  • UEBT hired a human rights expert to form part of the policy and sector transformation team and further strengthen our work on human rights across our membership, verification, certification and other activities.

  • Jointly with the International Fragrance Association, UEBT launched the IFRA-UEBT Responsible Sourcing Initiative, a platform for information exchange and collaborative action to assess and address responsible sourcing risks for key natural raw materials used in fragrance.

  • A UEBT supply chain due diligence project was launched with various partners and the support of German Due Diligence Fund (see box below).

UEBT Supplier Due Diligence platform

UEBT Supplier Due Diligence Platform is a unique tool for assessing and monitoring risks in natural raw materials supply chains.

UEBT team travels to Egypt. From left to right: Maria Julia Oliva, Director of Policy and Sector Transformation, Deniz Austin, Human Rights Expert, Francesca Minerva, Ethical Sourcing Expert amd Simona D’Amico, Head of Biodiversity and Impact.

 
 

Dialogue with stakeholders in Egypt

Participatory assessments of responsible sourcing risks in botanical supply chains in India and Egypt

In September 2023, UEBT launched a project that seeks to better understand the potential social and environmental risks in supply chains such as jasmine and herbs and spices in Egypt and jasmine and mint in India. The project involves research conducted by local experts and interactive workshops with local stakeholders to validate risks, understand underlying dynamics and root causes, consider existing efforts and look ahead to action needed at the supply chain and sector level.

 
 

Addressing challenges and risks in biodiversity

Botanicals have high biodiversity importance and a key role in the livelihoods of local and often marginalized people around the world, but there are several biodiversity risks and challenges in botanicals, as well as opportunities for positive impact. UEBT actively promoted biodiversity conservation and sustainable use practices in sourcing areas throughout 2023 by supporting the development and monitoring of 85 biodiversity action plans.

The UEBT Regenerative Programme was formally launched in 2023 after a successful pilot period. This programme is actively working with several UEBT members now who wish to promote regenerative practices in their supply chains.

UEBT Regenerative Programme

Biodiversity Action Plan Case Studies

Turmeric, India

Cinnamon, Vietnam

Cardamon, India

 
 

UEBT team on the ground in Madagascar, France and India (From left to right Vera Catalano, Catarina W. Ferreira, Charlotte Mallet, Ihoby Henintsoa Randriamalala and Simona D'Amico.

Addressing socioeconomic challenges and risks

Botanicals supply chains often have informal practices when it comes to wages and prices. Minimum wage equivalents are often not met when prices are paid to pickers or farmers, and there are few actions seen to move towards living wages.

UEBT began to implement dedicated projects with various members to understand how their ingredient sourcing can better contribute to living wages and incomes of local producers. Projects are now in place and ongoing in Brazil, India, Madagascar and Peru. UEBT also continued in 2023 its work as a member of the Global Living Wage Coalition , promoting credible benchmarks for estimating a living wage and actions towards closing the gaps.

Projects in Madagascar

UEBT Madagascar office is highly involved in local projects that seek to improve sourcing practices of Centella and respect people and biodiversity.

Dialogues for a Responsible Carnauba in Brazil

The Initiative for Responsible Carnauba (IRC) co-organised the first Dialogues for a Responsible Carnauba, an unprecedented event that brought together international buyers alongside government authorities, civil society organizations, producer and worker representatives and local wax processing companies. The event highlighted the crucial role that international companies have in asking for serious commitments from their suppliers and excluding those that do not commit.

Dr. Edno Carvalho Moura, Chief Prosecutor of the Public Ministry of Labour of Piaui asks international companies to join efforts to promote good working conditions in Carnauba supply chains (5 minute video)

 
 

Companies gather to learn and share challenges   

 

260 business leaders gathered online and in Amsterdam in October 2023 for the “Sourcing with Respect” Conference, the annual event hosted by UEBT that brings people together to discuss how ingredients from biodiversity can be sourced in a way that respects people and nature. The conference covered topics such as:

  • Global biodiversity framework for transformative change

  • Company strategies for impact

  • Local voices on people and biodiversity

  • Regeneration: what it takes

There was also a members’ exchange where UEBT member companies shared challenges and insights with each other as well as shared ideas for the next UEBT strategy that begins in 2025 (see box).

EVALUATION HIGHLIGHTS
100 survey responses were received about the conference:
  • 99% found the conference “good or very good”.
  • 96% of survey respondents said they would like to attend another conference.
  • 99% of respondents said it gave them knowledge they could use in their daily work.
  • 99% of respondents said it gave them ideas or opportunities for collaboration.

UEBT conference report 2023

 

Companies at the members’ exchange in Amsterdam

Members’ exchange
82 member representatives participated in two conversations:

  1. Facilitated topic tables. Choices were:
    • Reducing burdens on local suppliers related to double audits
    • Improving downstream side of supply chain relationships
    • Human rights and biodiversity
    • Living wages and living income
    • Biodiversity and climate
  2. Discussions to gather ideas from members about priorities for UEBT’s next strategy starting in 2025
 

Local voices make their case at UEBT Event

Once again, our most powerful session (per consistent feedback) was the one featuring leaders from companies at the source.

With powerful words from local leaders from Australia, Bulgaria, Indonesia, Namibia and Zimbabwe, this session focused on how buying companies must work in more meaningful partnerships with their suppliers.

Each presenter shared the unique work of their own company including the communities they work with, the workers or farmers involved, and what challenges they are facing.

The session had clear calls to action to the buying companies in the room, including to

  1. invest in the costs of making production sustainable,

  2. understand the tradeoffs and challenges producers face and seek to reduce those burdens, and

  3. pay fair prices and make longer-term commitments including in terms of volumes to support supplier resilience.

Martha Negumbo from Eudafano Women's Cooperative at the session Local Voices on Biodiversity, UEBT Conference 2023.

 

Our reach – facts and figures 

Check out our M&E report here

UEBT members are improving sourcing practices in more than 900 supply chains in 44 countries.

Additional facts and figures include:

  • 128 certificate holders (number of organisations with certification). They are meeting strict requirements on biodiversity conservation and restoration, cultivation or wild collection practices for sustainable use of biodiversity, respect for human and workers’ rights, and support for community well being and local development.

  • 556 ingredients verified or certified against the UEBT standard. UEBT assessors or independent auditors check practices carried out in the sourcing areas – including those implemented by farmers, farm workers, wild collectors and local suppliers.

  • 316 ingredients from biodiversity 'prioritised for improvement against UEBT standard.* UEBT members are required to gradually ensure priority supply chains are verified or certified against the UEBT standard or other standards with similar objectives. A new requirement for members was rolled out in 2023: within one year after UEBT membership is granted, the member company should be able to demonstrate, through UEBT verification or certification, that at least one natural raw material supply chain complies with the critical requirements in the UEBT standard.

* data on members’ prioritization of ingredients is from 2022

 
 

Financials

Find UEBT’s statement of financial position for the year 2023 below.

 
 

UEBT Board of Directors 2023

UEBT BoD as of December 2023. See all UEBT Board members here.

UEBT board and staff gather in-person, hosted by MartinBauer at their headquarters in Germany. From left to right: Lara Koritzke, Alfred Zink (guest of the Board and Managing Director of Procurement at MartinBauer), Rik Kutsch Lojenga, Stéphanie Paquin-Jaloux, Sebastian Sieben, Elisa Aragon, Cyrille Doumecq, Mark Davis, Andrew Wilson, Eder Ramos, Bertjan Bouman, Rachel Wynberg, Maria Julia Oliva, Pierre Charlier

 
 

UEBT team

Our growing team of experts in 2023:

Figure shows the UEBT team as of December 2023. See the whole team here.