TED Talks-Jason Clay: How big brands can help save biodiversity

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Transcript:

I grew up on a small farm in Missouri.We lived on less than a dollar a dayfor about 15 years.I got a scholarship, went to university,studied international agriculture, studied anthropology,and decided I was going to give back.I was going to work with small farmers.I was going to help alleviate poverty.I was going to work on international development,and then I took a turnand ended up here.Now, if you get a Ph.D., and you decide not to teach,you don't always end up in a place like this.It's a choice. You might end up driving a taxicab.You could be in New York.What I found was,I started working with refugees and famine victims --small farmers, all, or nearly all --who had been dispossessed and displaced.Now, what I'd been trained to dowas methodological research on such people.So I did it: I found out how many womenhad been raped en route to these camps.I found out how many people had been put in jail,how many family members had been killed.I assessed how long they were going to stayand how much it would take to feed them.And I got really good at predictinghow many body bags you would needfor the people who were going to die in these camps.

Now this is God's work, but it's not my work.It's not the work I set out to do.So I was at a Grateful Dead benefit concert on the rainforestsin 1988.I met a guy -- the guy on the left.His name was Ben.He said, "What can I do to save the rainforests?"I said, "Well, Ben, what do you do?""I make ice cream."So I said, "Well, you've got to makea rainforest ice cream.And you've got to use nuts from the rainforeststo show that forests are worth more as foreststhan they are as pasture."He said, "Okay."Within a year,Rainforest Crunch was on the shelves.It was a great success.We did our first million-dollars-worth of tradeby buying on 30 days and selling on 21.That gets your adrenaline going.Then we had a four and a half million-dollar line of creditbecause we were credit-worthy at that point.We had 15 to 20, maybe 22 percentof the global Brazil-nut market.We paid two to three times more than anybody else.Everybody else raised their prices to the gatherers of Brazil nutsbecause we would buy it otherwise.A great success.50 companies signed up, 200 products came out,generated 100 million in sales.It failed.Why did it fail?Because the people who were gathering Brazil nutsweren't the same people who were cutting the forests.And the people who made money from Brazil nutswere not the people who made money from cutting the forests.We were attacking the wrong driver.We needed to be working on beef.We needed to be working on lumber.We needed to be working on soy --things that we were not focused on.

So let's go back to Sudan.I often talk to refugees:"Why was it that the West didn't realizethat famines are caused by policies and politics,not by weather?"And this farmer said to me, one day,something that was very profound.He said, "You can't wake a person who's pretending to sleep."

(Laughter)

Okay. Fast forward.We live on a planet.There's just one of them.We've got to wake up to the factthat we don't have any moreand that this is a finite planet.We know the limits of the resources we have.We may be able to use them differently.We may have some innovative, new ideas.But in general, this is what we've got.There's no more of it.There's a basic equation that we can't get away from.Population times consumptionhas got to have some kind of relationship to the planet,and right now, it's a simple "not equal."Our work shows that we're livingat about 1.3 planets.Since 1990,we crossed the lineof being in a sustainable relationship to the planet.Now we're at 1.3.If we were farmers, we'd be eating our seed.For bankers, we'd be living off the principal, not the interest.This is where we stand today.A lot of people like to pointto some place else as the cause of the problem.It's always population growth.Population growth's important,but it's also about how much each person consumes.So when the average Americanconsumes 43 times as muchas the average African,we've got to think that consumption is an issue.It's not just about population,and it's not just about them; it's about us.But it's not just about people;it's about lifestyles.There's very good evidence --again, we don't necessarily havea peer-reviewed methodologythat's bulletproof yet --but there's very good evidencethat the average cat in Europehas a larger environmental footprint in its lifetimethan the average African.You think that's not an issue going forward?You think that's not a questionas to how we should be using the Earth's resources?

Let's go back and visit our equation.In 2000, we had six billion people on the planet.They were consuming what they were consuming --let's say one unit of consumption each.We have six billion units of consumption.By 2050,we're going to have nine billion people -- all the scientists agree.They're all going to consume twice as much as they currently do --scientists, again, agree --because income is going to grow in developing countriesfive times what it is today --on global average, about [2.9].So we're going to have 18 billion units of consumption.Who have you heard talking latelythat's said we have to triple productionof goods and services?But that's what the math says.We're not going to be able to do that.We can get productivity up.We can get efficiency up.But we've also got to get consumption down.We need to use lessto make more.And then we need to use less again.And then we need to consume less.All of those things are part of that equation.

But it basically raises a fundamental question:should consumers have a choiceabout sustainability, about sustainable products?Should you be able to buy a product that's sustainablesitting next to one that isn't,or should all the products on the shelf be sustainable?If they should all be sustainable on a finite planet,how do you make that happen?The average consumer takes 1.8 seconds in the U.S.Okay, so let's be generous.Let's say it's 3.5 seconds in Europe.How do you evaluate all the scientific dataaround a product,the data that's changing on a weekly, if not a daily, basis?How do you get informed?You don't.Here's a little question.From a greenhouse gas perspective,is lamb produced in the U.K.better than lamb produced in New Zealand,frozen and shipped to the U.K.?Is a bad feeder lot operation for beefbetter or worse thana bad grazing operation for beef?Do organic potatoesactually have fewer toxic chemicalsused to produce themthan conventional potatoes?In every single case,the answer is "it depends."It depends on who produced it and how,in every single instance.And there are many others. How is a consumer going to walk through this minefield?They're not.They may have a lot of opinions about it,but they're not going to be terribly informed.

Sustainability has got to be a pre-competitive issue.It's got to be something we all care about.And we need collusion.We need groups to work together that never have.We need Cargill to work with Bunge.We need Coke to work with Pepsi.We need Oxford to work with Cambridge.We need Greenpeace to work with WWF.Everybody's got to work together --China and the U.S.We need to begin to manage this planetas if our life depended on it,because it does,it fundamentally does.But we can't do everything.Even if we get everybody working on it,we've got to be strategic.We need to focus on the where,the what and the who.So, the where:We've identified 35 places globally that we need to work.These are the places that are the richest in biodiversityand the most important from an ecosystem function point-of-view.We have to work in these places.We have to save these places if we want a chance in hellof preserving biodiversity as we know it.We looked at the threats to these places.These are the 15 commoditiesthat fundamentally pose the biggest threatsto these placesbecause of deforestation,soil loss, water use, pesticide use, over-fishing, etc.

So we've got 35 places,we've got 15 priority commodities,who do we work withto change the way those commodities are produced?Are we going to work with 6.9 billion consumers?Let's see, that's about 7,000 languages,350 major languages --a lot of work there.I don't see anybody actually being ableto do that very effectively.Are we going to work with 1.5 billion producers?Again, a daunting task.There must be a better way.300 to 500 companiescontrol 70 percent or moreof the trade of each of the 15 commoditiesthat we've identified as the most significant.If we work with those, if we change those companiesand the way they do business,then the rest will happen automatically.So, we went through our 15 commodities.This is nine of them.We lined them up side-by-side,and we put the names of the companies that workon each of those.And if you go through the first 25 or 30 namesof each of the commodities,what you begin to see is,gosh, there's Cargill here, there's Cargill there,there's Cargill everywhere.In fact, these names start coming up over and over again.So we did the analysis again a slightly different way.We said: if we take the top hundred companies,what percentageof all 15 commoditiesdo they touch, buy or sell?And what we found is it's 25 percent.So 100 companiescontrol 25 percent of the tradeof all 15 of the most significantcommodities on the planet.We can get our arms around a hundred companies.A hundred companies, we can work with.

Why is 25 percent important?Because if these companies demand sustainable products,they'll pull 40 to 50 percent of production.Companies can push producersfaster than consumers can.By companies asking for this,we can leverage production so much fasterthan by waiting for consumers to do it.After 40 years, the global organic movementhas achieved 0.7 of one percentof global food.We can't wait that long.We don't have that kind of time.We need changethat's going to accelerate.Even working with individual companiesis not probably going to get us there.We need to begin to work with industries.So we've started roundtableswhere we bring together the entire value chain, from producersall the way to the retailers and brands.We bring in civil society, we bring in NGOs,we bring in researchers and scientiststo have an informed discussion --sometimes a battle royale --to figure out what are the key impactsof these products,what is a global benchmark,what's an acceptable impact,and design standards around that.It's not all fun and games.

In salmon aquaculture,we kicked off a roundtablealmost six years ago.Eight entities came to the table.We eventually got, I think, 60 percentof global production at the tableand 25 percent of demand at the table.Three of the original eight entities were suing each other.And yet, next week, we launchglobally verified, vetted and certifiedstandards for salmon aquaculture.It can happen.

(Applause)

So what bringsthe different entities to the table?It's risk and demand.For the big companies, it's reputational risk,but more importantly,they don't care what the price of commodities is.If they don't have commodities, they don't have a business.They care about availability,so the big risk for them is not having product at all.For the producers,if a buyer wants to buy something produced a certain way,that's what brings them to the table.So it's the demand that brings them to the table.The good news iswe identified a hundred companies two years ago.In the last 18 months, we've signed agreementswith 40 of those hundred companiesto begin to work with them on their supply chain.And in the next 18 months,we will have signed up to work with another 40,and we think we'll get those signed as well.Now what we're doing is bringing the CEOsof these 80 companies togetherto help twist the arms of the final 20,to bring them to the table,because they don't like NGOs, they've never worked with NGOs,they're concerned about this, they're concerned about that,but we all need to be in this together.So we're pulling out all the stops.We're using whatever leverage we have to bring them to the table.

One company we're working with that's begun --in baby steps, perhaps --but has begun this journey on sustainability is Cargill.They've funded research that showsthat we can double global palm oil productionwithout cutting a single tree in the next 20 years,and do it all in Borneo aloneby planting on land that's already degraded.The study shows that the highest net present valuefor palm oilis on land that's been degraded.They're also undertaking a study to look atall of their supplies of palm oilto see if they could be certifiedand what they would need to change in order to become third-party certifiedunder a credible certification program.Why is Cargill important?Because Cargill has 20 to 25 percentof global palm oil.If Cargill makes a decision,the entire palm oil industry moves,or at least 40 or 50 percent of it.That's not insignificant.More importantly, Cargill and one other companyship 50 percent of the palm oilthat goes to China.We don't have to change the waya single Chinese company worksif we get Cargill to only sendsustainable palm oil to China.It's a pre-competitive issue.All the palm oil going there is good.Buy it.

Mars is also on a similar journey.Now most people understand that Mars is a chocolate company,but Mars has made sustainability pledgesto buy only certified product for all of its seafood.It turns out Mars buys more seafood than Walmartbecause of pet food.But they're doing some really interesting things around chocolate,and it all comes from the factthat Mars wants to be in business in the future.And what they see is that they need toimprove chocolate production.On any given plantation,20 percent of the trees produce 80 percent of the crop,so Mars is looking at the genome, they're sequencing the genome of the cocoa plant.They're doing it with IBM and the USDA,and they're putting it in the public domainbecause they want everybody to have access to this data,because they want everybody to help themmake cocoa more productive and more sustainable.What they've realizedis that if they can identify the traits on productivity and drought tolerance,they can produce 320 percent as much cocoaon 40 percent of the land.The rest of the land can be used for something else.It's more with less and less again.That's what the future has got to be,and putting it in the public domain is smart.They don't want to be an I.P. company; they want to be a chocolate company,but they want to be a chocolate company forever.

Now, the price of food, many people complain about,but in fact, the price of food is going down,and that's odd because in fact,consumers are not paying for the true cost of food.If you take a look just at water,what we see is that,with four very common products,you look at how much a farmer produced to make those products,and then you look at how much water input was put into them,and then you look at what the farmer was paid.If you divide the amount of waterinto what the farmer was paid,the farmer didn't receive enough moneyto pay a decent price for water in any of those commodities.That is an externality by definition.This is the subsidy from nature.Coca-Cola, they've worked a lot on water,but right now, they're entering into 17-year contractswith growers in Turkeyto sell juice into Europe,and they're doing that because they want to have a productthat's closer to the European market.But they're not just buying the juice;they're also buying the carbon in the treesto offset the shipment costs associated with carbonto get the product into Europe.There's carbon that's being bought with sugar,with coffee, with beef.This is called bundling. It's bringing those externalitiesback into the price of the commodity.

We need to take what we've learned in private, voluntary standardsof what the best producers in the world are doingand use that to inform government regulation,so we can shift the entire performance curve.We can't just focus on identifying the best;we've got to move the rest.

The issue isn't what to think, it's how to think.These companies have begun to think differently.They're on a journey; there's no turning back.We're all on that same journey with them.We have to really begin to changethe way we think about everything.Whatever was sustainable on a planet of six billionis not going to be sustainable on a planet with nine.

Thank you.

(Applause)