Udenrigsudvalget 2015-16
URU Alm.del Bilag 92
Offentligt
1586992_0001.png
Organisation Strategy for the Sustainable Trade Initiative (IDH) 2015-2020
This Strategy for the cooperation between Denmark and The Sustainable Trade initiative
(IDH) forms the basis for the Danish contributions to IDH, and it is the central platform for
Denmark’s dialogue and partnership with IDH. It sets up Danish priorities for IDH’s
performance within the overall framework established by the organisation’s own strategy
‘Innovating for Impact at Scale. 2016-2020’.
In addition, it outlines specific goals and results vis-à-
vis IDH that Denmark will pursue in its cooperation with the organisation. Denmark will work
closely with like-minded countries towards the achievement of results through its efforts to
pursue specific goals and priorities.
1. The mandate, mission and management of IDH
Mandate and mission
The Sustainable Trade Initiative (IDH) is a key sustainability player with engagement in app. 40
countries worldwide driving sustainability in key value chains. IDH’s mandate is to accelerate
and up-scale sustainable production and trade. This is done by building coalitions of front
running companies, civil society organizations, governments and other stakeholders in order to
develop innovative strategies and supply chain models which address key social and
environmental challenges. In these partnerships, companies and other stakeholders commit to
sustainable sourcing in their production and inclusive business development. This will impact
on sustainable development, including poverty alleviation, environmental sustainability and fair,
transparent and enhanced trade as set out in the international development goals (SDG 1, 2, 5,
8, 12, 14, 15 and 17).
Transformation of commodity value chains is a key element in ensuring sustainable and
inclusive growth. IDH has demonstrated that it is possible to lift entire value chains from small
holder farmers in developing countries to the European consumer to higher social and
environmental standards for example in the cotton and coffee sector where the amount of
sustainably produced cotton and coffee has increased with support from Danish development
aid. Through higher productivity and income for small scale producers, supply chain efficiency,
gender equality, reduction of waste, higher performance standards, better management
practices and better labour practices, enhanced local value creation can be achieved. At the
same time building a business case, where companies benefit from increased stability of supply,
better product quality and less impact on the environment.
IDH is currently engaged in seven key sectors: cotton, coffee, tea, cocoa, fruit and vegetables
(including flowers and species), palm oil, and aqua culture and have targeted interventions in 11
other sectors.
To achieve these objectives IDH will:
Build result-oriented coalitions of companies, NGOs, trade unions and governments;
Coordinate objectives and sector programmes in keys sectors;
Finance sustainable supply chain programmes to help e.g. small holders and raise private
match-funding; and
1
 URU, Alm.del - 2015-16 - Bilag 92: Organisationsstrategi for Danmarks samarbejde med The Sustainable Trade Initiative (IDH) 2015-2020
1586992_0002.png
Assist companies and other stakeholders in addressing challenges to sustainable
production and trade based on IDH’s expertise as a leading knowledge centre in this
area as well as analyse and disseminate key learnings from ongoing programmes.
In this manner, IDH provides added value by scaling and accelerating sustainable trade.
IDH engages more than 250 private sector partners in public-private partnerships, including
several companies that are frontrunners in driving sustainable and responsible production
forward at the global level e.g. Unilever, Nestle, IKEA; Bestseller and Arla. Approximately 25
pct. of companies partnering with IDH are Dutch. The following Danish companies and
organisations are cooperating with the initiative: Arla, Bestseller, DLG, Nordic Seafood,
Espersen, Danish Seafood Association, Danish Fashion Institute and the Confederation of
Danish Industry. In preparation of this strategy, Bestseller and Nordic Seafood have been
interviewed about their experience working with IDH. They found IDH highly professional,
efficient, responsive and relevant. Furthermore, both companies expressed that the results
achieved on sustainable product uptake would not have been possible without support from
IDH.
It will be a key priority to facilitate further participation of Danish companies and other Danish
stakeholders in IDH programmes and partnerships in order to promote sustainable commodity
sourcing and production and ensure that Danish companies and stakeholders benefit from
IDH’s extensive expertise and knowledge on sustainable business models in line with the
Danish priorities of promoting green growth, building innovative partnerships with the private
sector and engaging more companies in addressing development challenges as set out in
Danish strategy for development cooperation ‘The Right to a Better Life’ (2012).
Denmark became a bilateral donor to IDH in 2012 with an earmarked contribution of 10.2
million DKK covering the period 2012-2014 to the cotton sector programme in Mozambique
and the coffee sector programme in Uganda and Ethiopia. Good progress has been made in
both programmes. Sustainable produced cotton and coffee have increased according to the
targets set, and farm schools have been established to train and certify farmers according to
sector-wide sustainability standards.
Donors and financing needs
IDH was set up in 2008 as a joint initiative of the Dutch government, private companies,
NGOs and trade unions. The Dutch government is the largest donor with a contribution of
123 m euro for 2008-2015 and 100 m euro for the next phase of 2016-2020. Switzerland joined
as a donor in 2013 and has provided 30 m CHF for the period 2013-2017 and is planning
further core funding after 2017.
IDH aims to grow into a pan-European initiative in inclusive growth and sustainable
development. Given IDH’s extensive knowledge in the fields of global value chains and its
innovative approach to scaling and accelerating sustainable trade, IDH can become a key driver
in taking the sustainability agenda forward in Europe in close partnership with Denmark and
Netherlands and other like-minded countries as well as front running-companies.
2
 URU, Alm.del - 2015-16 - Bilag 92: Organisationsstrategi for Danmarks samarbejde med The Sustainable Trade Initiative (IDH) 2015-2020
1586992_0003.png
The level of activity set out in the IDH strategy 2016-2020 requires funding in the range of 45
million euro annually. IDH thus has a financing gap of 15-20 million Euros annually. To bridge
this gap, it is currently in dialogue with a number of donors including: Sweden, Ireland,
Norway, Austria, UK and the European Commission (DG Dev). IDH expects to conclude an
agreement with Sweden (SIDA) for core funding and possibly also Ireland (Irish aid) and the
Norwegian ministry of Climate and Environment on thematic support in 2016.
All IDH programmes are co-funded by the private sector with minimum 50 pct. of the total
programme cost. This means that implementation of a programme only begins with a
(minimum) of 1:1 match funding of IDH investments by the private sector. Since its inception
in 2008, ratio of private contributions have improved significantly from 0.17 in 2008 to 2.77 in
2014 with an average of 1.76. This positive development shows a strong commitment of the
private sector to actively – and financially – promote sustainable trade initiatives through IDH
programmes based on public-private partnerships
.
Companies with responsible sourcing
strategies are driven by growth opportunities, security of supply, reputation, competitiveness
and/or mitigation of food safety and quality risks. It is in the interest of the business to build
efficient, transparent and responsible supply chains.
It is a criterion for participation in IDH programmes that the companies subscribe to the
OECD guidelines for Multinational Enterprises
1
and ILO conventions. In this manner, IDH
programmes have responsible business conduct as an integral part of its partnerships.
New strategic framework 2016-2020
The future strategy of IDH covers the period 2016-2020 and sets out to turn the organisation
into a pan-European initiative and bring the IDH program to scale based on the results
achieved so far, including deeper market transformation through moving beyond certification,
promoting shared value creation and improving farmer resilience and productivity in order to
further accelerate sustainable trade.
This will also require an organisational adaptation to ensure robust and efficient programmes
and delivering results as the initiative grows. Currently, IDH has a relatively heavy senior
management structure with 5 directors in an organisation of app. 75.
2
The operational costs
including personnel, offices, communication etc. have increased from 0.3 m Euros in 2008 to
4.3 m Euros in 2014. Putting operational costs in relation to programme expenditures gives a
ratio of 16 pct. for both 2008 and 2014 and in relation to total funds managed (programme
expenditures plus private sector funds) gives a ratio of 11 pct. in 2008 as compared to 5 pct. in
2014, which must be considered satisfactorily. In the collaboration with Denmark a 7 pct.
overhead is applied in line with the Danish aid management guidelines. IDH has begun a
process to consolidate its structure further to ensure continuous efficiency and cost-effective
programme delivery. IDH will advertise vacancies in Denmark. An organigram is included in
annex 2.
THE OECD guidelines for Multinational Enterprises encompasses the United Nations Guiding Principles for
Business and Human Rights.
1
2
Corresponding to 50 Full Time Equivalent and 17 field staff on fixed term contracts.
3
 URU, Alm.del - 2015-16 - Bilag 92: Organisationsstrategi for Danmarks samarbejde med The Sustainable Trade Initiative (IDH) 2015-2020
1586992_0004.png
The partnership with IDH will be implemented in accordance with the Guidelines for
Management of Danish Cooperation with Multilateral and International Organisations (2014).
Management Structure and Results Measurement
The governing bodies of IDH are the Supervisory Board and the Executive Board. The
Supervisory Board is multistakeholder
3
with representatives of both private companies and civil
society organisations. It appoints its own members. It is charged with supervising the policy of
the Executive Board and IDH’s performance. The Supervisory Board has established an Audit
Committee, a Nomination and Remuneration Committee and an Impact Committee to ensure
proper oversight and technical guidance. The Supervisory Board will be further
’internationalised’ by 2016 to adequately reflect the international role and partner network of
IDH. The Danish Ministry of Foreign Affairs will assist IDH in identifying possible Danish
candidates for future vacancies in the Supervisory Board, i.e. a Danish private sector
representative, NGO or other specialist. Denmark will furthermore identify possible candidates
for future vacancies in the IDH impact committee.
The Executive Board (Executive Director and one of four Program Directors) is responsible
for the management of the organization and are accountable to the Supervisory Board.
IDH has in 2015 established a Donor Committee as a key part of its management structure to
ensure donor alignment and facilitate a more strategic dialogue on policy making and setting
the future direction of the organization. The current members of the Donor committee are the
donor countries Netherlands, Switzerland and Denmark. The committee replaces the former
Policy and Program Committee (representatives of IDH’s donors) as well as individual annual
meetings with donors.
IDH has developed a general result measuring framework (M&E) focused on delivering public
good that will be applied by all programmes in the IDH strategy 2016-2020 (see section 3.1.).
The framework is based on the standard for monitoring and evaluation that is formulated by
the Donor Committee for Enterprise Development (DCED) of which Denmark is a member.
IDH works with local implementing partners in all programmes and thus conducts a number of
tender processes. IDH tender policy is based on the principles that the process should be
transparent, based on a fair selection and according to EU public procurement procedures.
4
2. Strategic considerations
A key priority for Denmark is to create sustainable growth, including sustainable value chains
and responsible business conduct as set out in Denmark’s strategy for development
The Supervisory Board currently has 8 members and is chaired by André Veneman, Director Sustainability at Akzo Nobel.
Other members include Berry Martin, Executive Board Member, Rabobank the Netherlands, Gosse Boon, CFO Nutreco, Mrs.
Farah Karimi, Executive Director Oxfam Novib and Johan van de Gronden, Director WWF the Netherlands.
4
The threshold values that IDH follow are that assignments below 50.000 EUR are not requiring a tender procedure.
Assignments in the range between 50.000 and 200.000 EUR require a tender procedure with at least 3 applicants.
Assignments above 200.000 EUR must follow official EU public procurement procedures.
3
4
 URU, Alm.del - 2015-16 - Bilag 92: Organisationsstrategi for Danmarks samarbejde med The Sustainable Trade Initiative (IDH) 2015-2020
cooperation ‘The Right to a Better Life’ (2012). IDH is representing an innovative approach to
sustainable growth by linking public and private partners. IDH has been successful in
convening large companies and other partners on a pre-competitive basis to address challenges
of sustainable production and trade on a large scale.
An increasing number of companies perceive cooperation as a means to serve business interest
as well as producing shared value and public good at scale. What was considered exceptional
only a few years ago, is now unfolding at large scale: public-private partnerships of
multinational companies, governments and civil society organisations jointly addressing issues
that were traditionally the domain of the public sector such as poverty reduction, deforestation,
gender equality and addressing climate change. Public-private partnerships as convened by IDH
offers a possibility to address issues of public good such as poverty reduction, improved
working conditions, deforestation, sustainable land-use and climate change by bundling and
leveraging private and public knowledge, entrepreneurial skills, technological innovation and
finance.
Effective cooperation with and within the private sector - locally and internationally - is
imperative in delivering sustainable growth and development. As a neutral convenor, IDH is
able to bring key stakeholders including private companies around the table, demand serious
commitment, and get them to cooperate in a result-oriented manner. The precompetitive
cooperation of major companies (and competitors) in the IDH programmes is innovative and
creates the basis for large-scale sustainability impact in producing countries. Another strength
of IDH is its leveraging power to mobilize resources from both public and private partners.
Furthermore, learning and innovation are integral parts of IDH programme design. IDH has
built substantial knowledge and expertise that is also highly relevant for Danish companies.
IDH also faces some challenges. IDH was only created in 2008. It has thus had a number of
lessons learned, including on how to move beyond certification to deeper market
transformation and how to maximise impact on poverty alleviation, which is being addressed in
the IDH strategy towards 2020.
A review carried out by IOB (the Policy and Operations Evaluation Department, MFA,
Netherlands) in august 2014 pointed to the following main findings and recommendations:
IDH has succeeded in becoming a main player in advancing coalitions of companies and other
stakeholders for sustainable commodity sourcing and has provided a strong boost to
certification of primary producers in developing countries on mainstream sustainability
standards. At the output level, the larger programmes including cotton and coffee achieved
practically all targets set for the period up to 2013 or overshot them. However, the impacts of
standards and certification for primary producers in developing countries are rather modest,
albeit positive. Certification is furthermore not sufficient to provide poverty alleviation for
small holder producers and workers. Another key challenge is insufficient market uptake by
companies of the quickly growing supply of certified produce. Certified sales of cocoa, coffee,
tea and cotton are currently less than 1/3 of what farmers produce. There is thus a need to
move beyond certification, which has been defined as a core priority for IDH towards 2020.
The work to move beyond certification has been initialized in IDH’s cocoa, coffee and tea
5
 URU, Alm.del - 2015-16 - Bilag 92: Organisationsstrategi for Danmarks samarbejde med The Sustainable Trade Initiative (IDH) 2015-2020
1586992_0006.png
programmes, including increasing productivity and improving farming methods through farm
schools for small holders.
Grant funding is the main financing tool of IDH in sector programs. This will remain the case
toward 2020. However IDH plan to explore the possibilities of innovative financing to create
scale and deliver enhanced public good impact. In partnership with the Dutch development
bank, FMO, IDH will developed best practice in managing innovative financing (based
primarily om risk-sharing in providing finance to small holders) in the context of supply chain
transformation with a focus on small scale farmers. The aim by end of 2017 is to provide more
that 80.000 small holders with access to finance. IDH sees a clear opportunity here to act as a
catalyst for the financial sector as well as the supply chain.
5
3. Main priorities and focus areas in Denmark’s collaboration with IDH
IDH’s mission towards 2020 is to accelerate global commodity chains towards sustainability by
building public-private coalitions that commit to sustainable sourcing on the market side and
inclusive business development on the supply side. On the basis of the IDH strategy 2016-
2020, there will be two main focus areas for the collaboration:
I. Enhancing smallholder inclusion, productivity and livelihood improvements in
seven key sectors: Cotton, coffee, tea, cocoa, palm oil, aqua culture and ‘fresh and
ingredients’ (fruit, vegetables, cashew, spices and flowers)
A core element of the IDH strategy 2016-2020 is to support the development of inclusive
agricultural value chains that empower small-scale farmers to sell to more stable, bigger or
higher-value markets. A main focus of IDH’s programs is the first links of the supply chain, in
particular the producer – which is often a smallholder farmer. In most of smallholder
agriculture around the world, farming systems are poorly resourced and generate insufficient
revenue to provide a decent livelihood. Sustainable intensification of farming as well as supply
chain transparency are critical to improving these rural livelihoods. Given this setting, the key
elements of IDH’s programs will target supply chain investments into technological
innovations, higher yields, farm rehabilitation, good agricultural practices and improved
availability of inputs. Concretely, small holders are trained in good agricultural practices and
certified according to sector wide sustainability standards through farms schools and their
access to fertilizer and seeds improved.
Cotton: No commodity is as polluting as cotton. About 10 pct. of all agricultural chemicals
used worldwide are processed by the cotton sector. Due to the environmental damage caused,
coupled with issues of high costs and low incomes for the farmers, the demand for organic and
fair trade cotton has grown rapidly. Nevertheless, the organic cotton market is predicted to stay
relatively small. There is thus a need for market transformation that makes sustainable cotton
the norm. As part of the strategy 2016-2020, IDH aims to drive sustainable change in the
cotton sector supplemented by targeted interventions in the wider apparel sector. IDH is a key
driver in the public-private partnership, who aims to speed up the implementation of the Better
5
The innovative financing project with FMO is initially limited to 5 m Euro of IDH spending.
6
 URU, Alm.del - 2015-16 - Bilag 92: Organisationsstrategi for Danmarks samarbejde med The Sustainable Trade Initiative (IDH) 2015-2020
1586992_0007.png
Cotton Initiative (BCI) making sustainable cotton production the mainstream standard. Other
partners include Bestseller, IKEA, H&M, Marks &Spencer, Adidas and Levi Strauss & Co.
In the coffee value chain, IDH is a partner in the The Sustainable Coffee Program (SCP),
which is a global, pre-competitive, public-private initiative that involves industry and trade
partners, governments, NGOs and standard setting organizations in the coffee sector. IDH
focus interventions on bringing global sustainable coffee production and sourcing practices to
scale, by aligning stakeholder investments in producer support programs, which aim to improve
farmer livelihoods and increase sustainable yields to meet growing demand.
The IDH Tea Program promotes both sustainable tea production in Africa and Asia and
sustainable procurement in Western Europe and Asia. It is a cooperation of Europe and Asia's
largest tea packers, and the most important certifiers and NGOs in the sector. The IDH Tea
Program aims to upscale sustainable tea production and consumption.
The IDH cocoa program brings together over 40 pct. of the worldwide cocoa processing
industry and 30 pct. of worldwide chocolate manufacturing businesses. It also involves local
governments and other stakeholders. Farm productivity is a key condition for a sustainable
cocoa economy. Revitalization of cocoa farming requires a ‘productivity package’ which
comprises of Good Agricultural Practices, improved planting material, fertilizer and financing.
IDH focus on how to develop the agro-input markets in West-Africa to become more
transparent and competitive, to give cocoa farmers access to farm inputs in a socially and
environmentally sustainable manner.
IDH Palm Oil Program builds industry coalitions to develop innovations and maximize impact
on key challenges such as traceability, compliance with sustainability standards, smallholder
productivity, and access to finance and sustainability monitoring. The objectives of the program
are to avoid deforestation and greenhouse gas emissions associated with palm oil production,
while improving productivity and income for app. 100,000 smallholders.
IDH Programme on ‘Fresh and Ingredients’: The major part of this programme (focussed on
the retail sector) is fruit and vegetables production. IDH is part of the Sustainability Initiative
on Fruits and Vegetables (SIFAV), which aims to make imports of fruits and vegetables from
Africa, Asia and South America 100 pct. sustainable by 2020. Main intervention include setting
up the minimum requirements for social and environmental sustainability and building a broad
sector commitment, promoting global standard equivalency of the eight existing standards in
the fruit and vegetable sector and building the capacity of producers and small holders to
comply with sustainable production practices.
IDH Programme on Aquaculture. This demand-driven program aims to increase responsible
production by fish farmers in a number of Asian countries of the European import of shrimp,
tilapia and pangasius by 15 pct. in 2015.
These value chains of agricultural produce based on small holder production will be a main
focus of the Danish collaboration with IDH. It builds directly on the Danish support for the
IDH coffee programme in Ethiopia and Uganda and cotton programme in Mozambique (2012-
7
 URU, Alm.del - 2015-16 - Bilag 92: Organisationsstrategi for Danmarks samarbejde med The Sustainable Trade Initiative (IDH) 2015-2020
1586992_0008.png
14) and offers synergy with the Danish priority area of turning agriculture and food production
sectors into drivers of sustainable and inclusive growth as set out in the Danish strategy for
development cooperation.
II. Mainstreaming of gender equality and empowerment of women across IDH’s
programmes and interventions
Towards 2020, IDH will integrate gender equality and empowerment of women across IDH
programmes with the goal of fully embedding gender equality in the business practices of the
private sector (SDG5). Equal opportunities, labour condition, empowerment and protecting
women against sexual harassment will be important elements in farmer field schools, sourcing
strategies and investment plans of IDH.
In the past, gender equality and empowerment of women was not systematically addressed in
IDH programmes. However, IOB recommends in their 2014-review that the gender dimension
is strengthened. On this basis, IDH has defined gender as a priority area in the 2016-2020
strategy as well as the current sector transformation strategies for cocoa, coffee, tea and cotton.
In this regard, IDH will need to build its knowledge base, including through cooperation with
recognized civil society organisations with expertise in addressing gender equality and
empowerment of women.
6
The integration of gender equality in IDH programmes and interventions will be a main focus
of the Danish collaboration with IDH in line with the Danish strategy for development
cooperation and the human rights based approach to development.
3.1. Result areas and Result Measurement
IDH has developed a result measurement framework for the strategy 2016-20 including a set of
result chains related to three general results areas for each programme. The results framework
will be applied by all programmes under the strategy 2016-2020. The three results areas are:
1. Change in business practices: Relating to the main business actors in the value chain at
corporate level, this change involves more sustainable business practices.
2. Improved sector governance: Relating to sector agencies and institutions (systems,
capacities, policies, rules and regulations) this change involves managing the sector in a
more sustainable way (making it profitable, resilient, environmentally and socially sound)
on local and international level.
3. Improved field-level sustainability: Relating to producers, workers and producer
communities and their livelihoods, this change involves sustainability impacts such as
their economic situation, social wellbeing and sustainability of the natural resource base.
The role of IDH is established as: 1. Broadening market commitments to a pan-European and
global level; 2. Enhancing local convening and shared value creation; 3. Moving from grants to
6
Including Hivos, Wo=Men, Agri-ProFocus m.fl
8
 URU, Alm.del - 2015-16 - Bilag 92: Organisationsstrategi for Danmarks samarbejde med The Sustainable Trade Initiative (IDH) 2015-2020
1586992_0009.png
innovative finance; 4. Embedding gender in the transformation strategy; and 5. Learning on
deep impact issues and integration into performance measurement.
On this basis, a set of indicators covering the two Danish focus areas of small holder inclusion
and gender equality has been selected from IDH results measurement framework in annex 1.
A joint mid-term review will be undertaken with other donors in 2017.
3.2. Synergies
Exploring further synergies with other Danida-supported programmes and initiatives to
promote sustainable value chains will be of high priority in the future collaboration with IDH.
Including the following:
It is a strategic priority in Danish development cooperation to work for a stronger private
sector.
IDH programmes focus on a number of priority countries for Danish development
assistance, where Denmark also supports private sector development through bilateral
programmes and Danida Business Programmes. The support for IDH will therefore
complement these programmes and offer potential synergy that will be explored through
continued dialogue with the Danish embassies in question and IDH
.
The Global Green Growth Forum (3GF). IDH is a key partner and 3GF wishes to further
engage IDH as a strategic partner. The institutional collaboration between 3GF and IDH will
focus on two components 1) knowledge sharing, inputs on the 3GF programme, and high-level
participation in 3GF activities 2) development of and participation in collaborative partnerships
with scalable green growth potential. Furthermore, a partnership initiative for the textile
industry was launched in 2014 under the heading
’A race to the top’.
It aims to build a case for
market transformation in the textile industry with Vietnam as a pilot country. IDH is the lead
convener. Other partners include ILO, IFC and major brands such as Levi’s Strauss.
The Global Environment Facility (GEF) is in the process of preparing a multi-agency program
on Commodity Supply Chains (45 m. USD). The focus of the program is palm oil, soy and beef
with special attention to large producer countries like Brazil and Indonesia (plus a country in
Africa to be selected). The aim of the program is to reduce the global impacts of agriculture
commodities on deforestation, climate change and biodiversity. Denmark contributes to GEF
with 435 m. USD over a four year period (2014-2017).
Denmark is also supporting International Finance Corporation’s (IFC’s) interventions to
promote sustainable value chains, including through the ‘Inclusive Green Growth Program’.
IDH is partnering with IFC in a number of sector programmes and is currently seeking
partnership with IFC among others to create “think-tank dialogues” where sector stakeholders
share thought leadership around complex sustainability challenges and actionable pathways.
9
 URU, Alm.del - 2015-16 - Bilag 92: Organisationsstrategi for Danmarks samarbejde med The Sustainable Trade Initiative (IDH) 2015-2020
1586992_0010.png
4. Budget
Year
(million DKK.)
Core contribution
Total funding (accumulated)
2015
-
-
2016
20
20
2017
20
40
2018
-
-
2019
-
-
2020
-
-
(million
DKK)
I alt
-
40
A contribution of 40 m DKK over two years (2016-2017) is part of the Finance Bill for 2015.
After the first phase (2015-2016), Denmark will consider further core funding for the
remaining period of the IDH strategy. The decision will be based on an assessment of initial
results achieved as well as clear added value for Danish companies and other stakeholders
indicated by: 1) An increasing number of Danish companies and other stakeholders
participating in IDH-led programmes and partnerships and 2) A survey of a select number of
Danish companies on their experience with IDH. Further funding is subject to the approval of
the relevant appropriation authorities.
5.
Assessment of risks
IDH has a well-developed risk management framework including external, programmatic,
organisational and financial risks as well as mitigation measures. In relation to the Danish
support, the following risks have been identified:
Risks
The strategic plan 2016-20 may not
be fully financed by bilateral donors
IDH engage with a number of
partners in implementation of the
global roll out programme and there
is thus an immanent risk of misuse
of funds
Risk
Probability
Medium
Risk
Impact
Medium
Mitigation Measures
IDH has outlined an alternative financing
scenario in the strategic plan to cater for a
lower level of donor funding.
IDH policy on fiduciary risk management is
included in the Code of Conduct, which apply
to all staff, consultants and partners. The
policy includes a whistle-blower system
where people anonymously can report cases
of misconduct to the appropriate level i.e.
managers, Executive Board or the Supervisory
Board. In cases of gross misconduct the staff
may be laid off or a contract may be cancelled
and as appropriate the cases referred for
legal action. So far no cases have been
reported.
The IDH Supervisory Board and the Executive
Board must ensure that the use of ODA funds
for private sector development is done in
compliance with established guidelines for
additionally e.g. the DCED guidelines. This will
also be followed by the Donor Committee.
IDH must strive to ensure that annual
implementation plans are realistic in terms of
timing of activities, delivering of outputs and
spending of funds. Delays in implementation
Medium
Low
The use of ODA funds for private
sector development does not
comply with established guidelines
for additionally e.g. the DCED
guidelines
IDH is facing challenges
implementing programmes
according to plans resulting in
limited absorptive capacity of donor
Medium
High
Medium
Medium
10
 URU, Alm.del - 2015-16 - Bilag 92: Organisationsstrategi for Danmarks samarbejde med The Sustainable Trade Initiative (IDH) 2015-2020
1586992_0011.png
funds
The market uptake is not sufficient
to match production levels under
the IDH supported sustainable trade
initiatives
With engagement in 18 sectors and
limited resources both in terms of
finance and staff, there is a risk of
spreading the butter too thinly
across sectors and lose focus
High
High
Medium
Medium
and accumulation of donor funds must be
reported to the Donor Committee
IDH must address the demand-side as well as
the supply-side of the market transformation
equation. The issue of market uptake will be
addressed in the context of the strategy
2016-2020 .
The IDH strategy 2016-20 is addressing the
issue of exit strategies in general as well as
for the specific programmes. An exit strategy
will be applied when there is no further need
for IDH intervention or where the
responsibility can be transferred to another
party. Consequently IDH is planning to exit a
number of programmes which will bring the
IDH portfolio to 11 sectors
11
 URU, Alm.del - 2015-16 - Bilag 92: Organisationsstrategi for Danmarks samarbejde med The Sustainable Trade Initiative (IDH) 2015-2020
1586992_0012.png
Annex 1: Selected indicators from IDH results measurement framework
D
anish focus area I:
Enhancing smallholder inclusion, productivity and livelihood
improvements in seven key sectors: Cotton, coffee, tea, cocoa, palm oil, aqua culture
and ‘fresh and ingredients’ (fruit, vegetables, cashew, spices and flowers)
Indicator:
Metrics/specifics
Type
IDH results area 1: Changing Business Practices
Private sustainability
Total and co-funding ratios
investment by IDH program
partners in the program
Sustainability embedded at
In sector and other sectors of
corporate level by set of
company
SMART formulated KPIs
Uptake rate of
By sector
certified/verified/sustainable
production by program
partners
Global market share of
By sector
certified/verified/sustainable
produced sourcing
IDH results area 2: Sector governance
Number of small holder
By sector
producers aggregated by
program company to
effectively receive services
Effectiveness of multi-
By sector
stakeholder platform
associated with the
programme
IDH results area 3: Improved field level sustainability
Number of producers (m/f)
By sector
trained on key subjects for
sustainable production,
environmental and social
sustainability issues
Volume of
By sector
certified/verified/sustainable
produced production
Number of processing
By sector
facilities with sustainable
productions
Improved wages (m/f)
By sector
Danish focus area II:
Mainstreaming of gender equality and
Quantitative
Qualitative
Quantitative
Quantitative
Quantitative
Qualitative
Quantitative
Quantitative
Quantitative
empowerment of women
Qualitative
across IDH’s programmes and interventions
IDH results area 2: Sector governance
Effectiveness of multi-
By sector.
stakeholder platform
Effective sector policies on
associated with the
gender
programme
IDH results area 3: Improved field level sustainability
Improved gender equality
By sector
Qualitative and quantitative
12
 URU, Alm.del - 2015-16 - Bilag 92: Organisationsstrategi for Danmarks samarbejde med The Sustainable Trade Initiative (IDH) 2015-2020
1586992_0013.png
ORGANIZATION CHART IDH Utrecht
Program Director
Execu ve Board Member
Execu ve Director
Execu ve Board Member
Director of Opera ons
Program Director
Director Learning and
Innova on
Finance
manager
Programs
Senior
Program
Manager
Director ISLA
program
Senior
Manager
Public Affairs
Senior Program
Retail and
Trade
Senior
Program
Manager
Director
Partnerships
Senior
Manager
Innova ve
Finance
Senior Manager
Learning &
Innova on
Senior
Communica on
Manager
Opera ons
Manager
Financial
Controller
Senior
Financial
Officer
HR
Officer
Opera ons
Officer
Program Officer
Program Officer
Program Officer
Program Officer
Innova ve
FInance
Communica on
Manager
Annex 2: IDH Organigram
Legal Counsel
Office
Manager
Legal Officer
PA/Secretary
Program Officer
Program Officer
Program Officer
Program Officer
Learning
Communica on
officer
Financial Officer
Opera ons
Officer
Different colour boxes represents the posi on levels
Different colour text represents the different key teams
All program officers report to their level 3 program manager
Finance department is headed by Finance Manager Programs and Financial
Controller
Communica on manager and officer report to senior communica on manager
13