Toespraak van minister Ploumen bij de conferentie 'EU and Global Value Chains'

Toespraak | 08-12-2015

Ladies and gentlemen,

While eating your breakfast this morning, did any of you wonder if the butter on your bread might have contributed to the recent forest fires in Indonesia? Did you decide to put on clothes that are free of child labour? And while drinking your cup of coffee in the lounge just now did you think: 'I wonder if the coffee farmer at the other end of the global value chain got a fair price for his beans.'

Every day we all play a role in global value chains - usually at the end of the chain, as consumers. But for most of us the link between the forest fires in Indonesia and our daily breakfast is not an obvious one. Let alone feeling responsible for it. The reality is that global value chains have become a dominant feature of world trade. They create a high level of interconnectedness and interdependency, making it very complex to steer changes in the direction we desire - towards a more sustainable world. Today, we’ll be discussing how we - as politicians, as business leaders and as civil society - can make our contribution to that ideal. What do we need to do? And what’s the best way to go about it?

We've chosen the European Union as a platform for this discussion - and for good reason. Through our votes we set the course for governments. And through our buying behaviour we steer the markets. If consumers demand sustainable products and more transparency, the EU is the place to make this happen. We have one common market and one common trade policy. And in Brussels we have the institutions we need to be able to work together. The European Union, its member states, business and civil society can transform global value chains. Collective European commitment will have impact, also beyond Europe’s borders. Because our market is the largest in the world. Together, we have the leverage to transform supply chains.

More and more, that’s what people expect of us. People expect products to be responsibly sourced. Nobody wants to buy products that are made by children or that seriously harm the environment. People feel they have a right to fair products, produced without human rights violations and environmental damage. People look to their governments to regulate these issues - even if they occur outside their own country. And people expect companies to prevent and mitigate these issues wherever in the world they operate.

Other compelling reasons to commit to sustainable value chains lie in the global challenges we face. Let's take a look at a few of them:

• First, there’s demographics. Only 35 years from now, there will be 9 billion people who all need food, clothing, heating, clean air and water. With each individual consuming more than previous generations.
• Second, there’s the high impact on developing countries. The opportunities that come with internationally traded goods are a blessing. But the damaging effects of unsustainable production are a curse. All too often the curses and blessings are unevenly distributed. The most serious environmental and human rights violations tend to occur at the beginning of the production chain. Often in developing countries where monitoring and regulation is lacking.
• And third, there are the reputational risks. The more dependent we become on international value chains, the more the curses become risks for business. Thanks to the internet and social media, any misconduct in a particular chain quickly becomes global public knowledge. Risks are not good for business. Too many will make business run away. And without business there’s no sustainable economic development. No country can develop with aid alone.

The bottom line is this: we urgently need to transform the way we produce and consume. We can’t carry on doing so in an irresponsible way.

We all have a role to play in this change. Businesses have the key task of carrying out due diligence on responsible business conduct in the global value chain. But that’s not easy. It’s all about assessing risks in the value chain, managing them and being accountable. By the way, I use the term responsible business conduct here. But ‘corporate social responsibility’ or ‘sustainable business conduct’ are fine by me too. Let’s not dwell on the right term to use. We all mean the same thing.

Alongside businesses we have civil society organisations. Their task is to provide know-how, help businesses transition, help organize consumers and small scale producers and act as a watchdog.

And it’s up to EU institutions and member states to accelerate sustainable market transformation. We can do so in four ways:

• First, by stimulating innovation for sustainable production, trade and business models. Innovation is the spark that triggers market transformation and makes European companies competitive in the decades to come.
• Second, by supporting and facilitating multi-stakeholder platforms. Companies and civil society need to set clear sustainability targets and plot out a way to get there. Together. The bigger the market share represented in the platform, the greater the effect. Our competition laws need to provide scope for collaborating on sustainability targets.
• Third, we need to combat illegal practices throughout the value chain. Let’s support other governments strengthen law enforcement and improve laws and regulations. And let’s support civil society organisations in developing and emerging countries to exert more influence on policymaking.
• And fourth, we can stimulate sustainability through smart regulation and trade and investment agreements. We need to reach out to emerging consuming markets to increase global demand for sustainable goods.

The EU needs to create better coherence between development and trade policy. With a focus on sustainable value chains and responsible business conduct. So I welcome Commissioner Malmström’s ‘trade for all’ strategy. I hope this conference will produce new ways to implement this strategy and further integrate the EU aid and trade agenda. More coherence in aid & traid policies is key to the Global Goals - our new agenda.

I am encouraged by your participation and have high expectations. Being here today is a commitment to break down the silos, to explore how to make best use of all instruments and tools available to the EU. Let’s learn from each other and discuss how the EU can stimulate sustainability in global value chains. Not one party can provide the solutions alone. Please ask yourself today how you can contribute. I give you my personal commitment to work with you today, during our EU-Presidency and beyond.

I wish you all productive conference.

Thank you.