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True Price of Food - WUR · 2019-04-17 · True costs are the root problem of sustainability. External costs are costs that are not incorporated in the price but are real. NO x. CO.

Aug 12, 2020

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Page 1: True Price of Food - WUR · 2019-04-17 · True costs are the root problem of sustainability. External costs are costs that are not incorporated in the price but are real. NO x. CO.

Copyright 2019 True Price. All rights reserved. Image: www.flickr.com/photos/23586209@N03/12255394746 . Shared under the Creative Commons Attribution licence.

True Price of Food

Florian Reuter

Page 2: True Price of Food - WUR · 2019-04-17 · True costs are the root problem of sustainability. External costs are costs that are not incorporated in the price but are real. NO x. CO.

Copyright 2019 True Price. All rights reserved. 2

Our partners and clients

Impact Institute goal: every organization reports and steers on its societal accounts

Our social enterprise Our services

True Price goal: show and improve the true price of products

Page 3: True Price of Food - WUR · 2019-04-17 · True costs are the root problem of sustainability. External costs are costs that are not incorporated in the price but are real. NO x. CO.

Copyright 2019 True Price. All rights reserved. 3

True costs are the root problem of sustainability

External costs are costs that are not incorporated in the price but are real

NOx

CO2

Gender wage gap

Wages

Cd

H2O

Protectivegear

MJ

BOD

Incident rates

Income

Social Security

Rights at work

Health & Safety

Communities

Energy use

Materials use

Air, soil, and water pollution

Land use

Global warming

Water use

Yield

SOx

FTE

Production and consumption

Societal costs

Page 4: True Price of Food - WUR · 2019-04-17 · True costs are the root problem of sustainability. External costs are costs that are not incorporated in the price but are real. NO x. CO.

Copyright 2019 True Price. All rights reserved. 4

True prices are the means towards a sustainable economy…

CurrentProduct

TargetProduct

TruePrice

RetailPrice

TruePriceGap

Socialcosts

Environ-mentalcosts

Page 5: True Price of Food - WUR · 2019-04-17 · True costs are the root problem of sustainability. External costs are costs that are not incorporated in the price but are real. NO x. CO.

Copyright 2019 True Price. All rights reserved. 5

… and answer to the needs of all stakeholders

Investors

How can we invest for financial and societal return?

What non-financial risks should I consider?

Consumers

How can I buy more sustainably?

Companies

How can I differentiate on sustainability?

What are our risks and opportunities in the supply chain?

Governments

How can our economy serve society and not the other way round?

Page 6: True Price of Food - WUR · 2019-04-17 · True costs are the root problem of sustainability. External costs are costs that are not incorporated in the price but are real. NO x. CO.

Copyright 2019 True Price. All rights reserved. 6

We all know Tony’s Chocolonely

• Child labour and forced labourare well-known issues at cocoafarms

• Tony’s specifically focusses onproducing chocolate withoutthese negative effects

• True pricing supports thetransition towards sustainablechocolate bars

Page 7: True Price of Food - WUR · 2019-04-17 · True costs are the root problem of sustainability. External costs are costs that are not incorporated in the price but are real. NO x. CO.

Copyright 2019 True Price. All rights reserved. 7

55% lower external costs than conventional cocoa and a profitable business model

(EUR/kg cocoa)

Page 8: True Price of Food - WUR · 2019-04-17 · True costs are the root problem of sustainability. External costs are costs that are not incorporated in the price but are real. NO x. CO.

Copyright 2019 True Price. All rights reserved. 8

A comparison of commodities

Forced Labour

Gender

Harassment

Social security

Child labour

Income

Health & Safety

Land use

Air pollution

Water pollutionWater use

EnergyMaterials

Soil pollution

CoffeeVietnam

TeaKenya

CottonIndia

External costs

conventional($/kg farm

gate product)

$1.40/kg green beans

$0.80/kg tea leaf

$4.05/kg seed cotton

$0.02/cup of coffee

$0.01/cup of tea

$8.10/t-shirt

Page 9: True Price of Food - WUR · 2019-04-17 · True costs are the root problem of sustainability. External costs are costs that are not incorporated in the price but are real. NO x. CO.

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CONFIDENTIALITY REQUEST AND DISCLAIMERInformation, data, and drawings embodied in this document are confidential and are supplied with the kindrequest that they will be held confidentially and not disclosed to third parties without the prior writtenconsent of Impact Institute.

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