WHAT WE DO
Impact Incentives are an evolution of the book & claim or credit trading systems. Incentives are issues to producers that meet a set of sustainability criteria (eg: zero deforestation). The physical goods and the Impact Incentives are traded separately from each other, eliminating the cost and complexity of traceability, while still allowing transparency.
How do Incentives work?
The way they work is quite simple; farms that meet a chosen standard or benchmark will be able to sell incentives for their volume of output, and brands can purchase these incentives to balance out their use of these output materials. The farms selling the incentives may or may not be in the supply chain of the brands, as the incentives trading system does not address any traceability. While this means that brands cannot make any content claims on their products, they can by-pass the cost and complexity of long or opaque supply chains in order to deliver impact quickly and efficiently. And they can still make claims about their support for best practices.
WHAT WE DO
Impact Partnership Incentives allow brands and retailers to support on-the-ground programs to help producers meet best practices. Since these producers may not be at the level of achieving certification on their own, and thus qualifying to sell Impact Incentives, the approved on-the-ground “Program Partners” receive the financial incentive. They will help the producers work towards certification. When a brand purchases Impact Incentives from a Program Partner, this is considered an Impact Partnership.
What are Program Partners?
Program Partners deliver support and training, provide verification, and collect data from the producers, while offering stories, data, and credibility to the brands.
What are the Benefits of Impact Partnerships?
In addition to the benefits that will come through Impact Incentives, Impact Partnerships offer additional opportunities:
Addressing core issues
The standards and benchmarks that define best practices are powerful tools, but if the burden of meeting them is put solely onto the producers, then we will never see the rate of adoption that is needed. Impact Partnerships allow for producers to receive on-the-ground support to meet the sustainability requirements to qualify for Impact Incentives.
By creating a tool for brands to support producers to invest in best practices, we can accelerate the amount of sustainable materials that are available, allowing companies to meet their own targets and to contribute to meaningful change.
Beyond the exchange of financial support and information, having deeper levels of engagement between brands and program partners will enrich the understanding and experience of both sides.
Impact Partnerships are one of the strategies that brands can use to support best practices; they can complement Impact Incentives purchased directly from producers, as well as mass balance and identity preserved models. Having different options allows brands to set and meet meaningful targets for their various supply chain scenarios.