The Sustainable Trade Initiative IDH Phase II


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Driving sustainability in agricultural value chains from niche to norm: Sustainable and inclusive value chains support governments and the private sector to jointly reach the Sustainable Development Goals.

Country/region Period Budget
Colombia
Ghana
Global
Indonesia
Vietnam
01.07.2021 - 31.12.2025
CHF  12’000’000
Background

Increasing population goes along with increasing consumption, energy use, finite arable land, scarce raw materials and high agricultural commodity prices, which all together have an adverse impact on environment and people. Over the last years, these global developments gave the impulse for public-private partnerships in order to address the challenges jointly. The mission of IDH is to play a role as a neutral convener and to bring different actors towards effective collaboration. IDH drives public-private partnerships, contributing to realise inclusive growth in single commodity sectors and broad sourcing areas.

Objectives

The overarching goal of the proposed program is to drive systemic scaling of sustainability in agricultural commodity sectors in order to improve the livelihoods of smallholder farmers and workers and to mitigate & adapt to climate change. This goal shall be achieved through contributing to the program’s three outcome areas of improved sector governance, better business practices, and improved field level adoption of sustainable practices. To secure effective structural change, public and private power needs to be aligned through strengthened sector and landscape governance. Business practices of financial institutions, retailers, brands, traders and producers need to change in terms of sustainable sourcing, investments, monitoring, and service offering to farmers. Only when these systemic changes are achieved, improved field-level sustainability can be realized, translating into scalable and lasting impact on the SDGs.

Medium-term outcomes

Increased income by 15% - 30% for smallholder households

Reduced living wage gap by 50% for workers (men and women)

Improved working conditions for workers (men and women)

Area under sustainable land use management in ha

Protection of natural ecosystem in ha

GHG emission reduced in tones

GHG storage improved in tones

--> Note: Final target figures will be available at inception stage (mid 2021)

Results

Expected results:  

Number of multi-stakeholder agreements on improved livelihoods and climate change

Increase of sustainable sourcing in percentage

€270m co-financing into IDH programs

Number of companies sourcing from Verified Sourcing Area (VSA)

€219m Private Sector investment in sustainability leveraged

Number of companies working towards business cases benefitting people, planet and profit

Number of gender intentional and transformative projects developed and implemented by companies

Percentage of farmers adopting and implementing sustainable production practices

--> Note: Final target figures will be available at inception stage (mid 2021)


Results from previous phases:  

SECO’s long-standing cooperation with IDH has proven successful and lead to noteworthy results. Several evaluations and reviews conducted over the past years show positive results and confirm attribution of IDH’s work to improve livelihood of the smallholder farmers as ultimate beneficiaries. IDH has successfully developed approaches and cooperation modalities to engage with private sector partners. Through its three-pronged approach of convening, innovating and co-financing, IDH has contributed to improving the sustainability of value chains in developing countries. Major achievements of IDH for the years 2016 – 2020 include:

- 5 million farmers (of whom 35% women) reached through training and technical services

- 5.6 million hectares brought under sustainable production processes

- 8.5 million hectares of forest are managed sustainably

- €250 million of private sector investments leveraged into IDH’s programs.


Directorate/federal office responsible SECO
Budget Current phase Swiss budget CHF    12’000’000 Swiss disbursement to date CHF    0 Budget inclusive project partner CHF    283’500’000
Project phases Phase 2 01.07.2021 - 31.12.2025   (Current phase) Phase 1 01.07.2012 - 31.12.2021   (Completed)