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Sage & Seed’s Sustainability Report 2019 / 2020

As an impact-driven business, Sage & Seed Initiative measures success not only by profit, but also by its social, environmental and economic impact.

At the beginning of 2019, we embarked on a journey to align ourselves with the UN Sustainable Development Goals. Since then, we have identified 11 Goals, 42 Targets and 47 indicators to achieve within our business.

This visually-driven report emphasises key findings on the current status of our social, environmental and economic commitments.

The journey was an arduous one, requiring much qualitative and quantitative analysis; a painstaking alignment of strategy that challenged the way we did things in the past. The results are highlighted in this report.

SUSTAINABILITY REPORT:

  1. Letter from the CEO

At the beginning of 2019, Sage & Seed embarked on a journey to align itself with the UN Sustainable Development Goals. Since then, we have identified 12 Goals, 42 Targets and 47 indicators to achieve within our business.

This is just the beginning. As the years pass by, the reporting will become more comprehensive and holistic. As a social enterprise, Sage & Seed is committed to running an ethical business while upholding its social, environmental and economic commitments. This includes upholding the UN Sustainable Development Goals.

When we established Sage & Seed in 2019, we aimed to be amongst the most forward thinking and innovative organisations, pushing boundaries and setting new standards of operations for 21st Century businesses. We vow to never allow the age-old excuses of ‘small size’ or ‘limited budget’ to hamper our dreams.

We have implemented our Governance Framework in our 1st year of operation. Since then, it has evolved into one of our most comprehensive impact measurement documents (set against the SDG goals, targets and indicators).

We recognise the road ahead is long and challenging; there is much we need to improve to be a truly sustainable and ethical company. We will continue to report our findings transparently, whether good or bad, and take serious efforts to improve them.

Kate Spence,

Chief Executive Officer,

Sage & Seed Ltd, August 2019

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Goal 1: End poverty in all its forms everywhere

The UN says: More than 700 million people, or 10% of the world population, still live in extreme poverty and is struggling to fulfil the most basic needs like health, education, and access to water and sanitation, to name a few.

Having a job does not guarantee a decent living. In fact, 8 per cent of employed workers and their families worldwide lived in extreme poverty in 2018. Poverty affects children disproportionately. One out of five children live in extreme poverty. Ensuring social protection for all children and other vulnerable groups is critical to reduce poverty.

Poverty has many dimensions, but its causes include unemployment, social exclusion, and high vulnerability of certain populations to disasters, diseases and other phenomena which prevent them from being productive. Growing inequality is detrimental to economic growth and undermines social cohesion, increasing political and social tensions and, in some circumstances, driving instability and conflicts.

 

Sage & Seed’s Indicator 1:

1.4 By 2030, ensure that all men and women, in particular the poor and the vulnerable, have equal rights to economic resources, as well as access to basic services, ownership and control over land and other forms of property, inheritance, natural resources, appropriate new technology and financial services, including microfinance.

Our KPI’s: We will measure the ratio of lowest salaries within Sage & Seed against the minimum wage, by sex and working geographical location

Sage & Seed’s Indicator 2:

1.3 Implement nationally appropriate social protection systems and measures for all, including floors, and by 2030 achieve substantial coverage of the poor and the vulnerable

1.5 By 2030, build the resilience of the poor and those in vulnerable situations and reduce their exposure and vulnerability to climate-related extreme events and other economic, social and environmental shocks and disasters

Our KPI’s: The proportion of staff covered by social protection floors/systems (staff welfare benefits, insurance coverage).

Goal 2: Zero Hunger

The UN says: It is time to rethink how we grow, share and consume our food. If done right, agriculture, forestry and fisheries can provide nutritious food for all and generate decent incomes, while supporting people-centered rural development and protecting the environment.

Right now, our soils, freshwater, oceans, forests and biodiversity are being rapidly degraded. Climate change is putting even more pressure on the resources we depend on, increasing risks associated with disasters, such as droughts and floods. Many rural women and men can no longer make ends meet on their land, forcing them to migrate to cities in search of opportunities. Poor food security is also causing millions of children to be stunted, or too short for the ages, due to severe malnutrition.

A profound change of the global food and agriculture system is needed if we are to nourish the 815 million people who are hungry today and the additional 2 billion people expected to be undernourished by 2050. Investments in agriculture are crucial to increasing the capacity for agricultural productivity and sustainable food production systems are necessary to help alleviate the perils of hunger.

Sage & Seed’s Indicator 1:

Sage & Seed’s Indicator 2:

Goal 3: Ensure healthy lives and promote well-being for all at all ages

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The UN says: Ensuring healthy lives and promoting the well-being at all ages is essential to sustainable development.

Significant strides have been made in increasing life expectancy and reducing some of the common killers associated with child and maternal mortality, but working towards achieving the target of less than 70 maternal deaths per 100,000 live births by 2030 would require improvements in skilled delivery care.

Achieving the target of reducing premature deaths due to incommunicable diseases by 1/3 by the year 2030 would also require more efficient technologies for clean fuel use during cooking and education on the risks of tobacco.

Many more efforts are needed to fully eradicate a wide range of diseases and address many different persistent and emerging health issues. By focusing on providing more efficient funding of health systems, improved sanitation and hygiene, increased access to physicians and more tips on ways to reduce ambient pollution, significant progress can be made in helping to save the lives of millions.

Sage & Seed’s Indicator 1:

Sage & Seed’s Indicator 2:

Goal 4: Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all

The UN says: Obtaining a quality education is the foundation to creating sustainable development. In addition to improving quality of life, access to inclusive education can help equip locals with the tools required to develop innovative solutions to the world’s greatest problems.

Over 265 million children are currently out of school and 22% of them are of primary school age. Additionally, even the children who are attending schools are lacking basic skills in reading and math. In the past decade, major progress has been made towards increasing access to education at all levels and increasing enrollment rates in schools particularly for women and girls. Basic literacy skills have improved tremendously, yet bolder efforts are needed to make even greater strides for achieving universal education goals. For example, the world has achieved equality in primary education between girls and boys, but few countries have achieved that target at all levels of education.

The reasons for lack of quality education are due to lack of adequately trained teachers, poor conditions of schools and equity issues related to opportunities provided to rural children. For quality education to be provided to the children of impoverished families, investment is needed in educational scholarships, teacher training workshops, school building and improvement of water and electricity access to schools.

Sage & Seed’s Indicator 1:

Number of kids, youths and adults, that participated in non-formal education and/ or training in the previous 12 months.

Sage & Seed’s Indicator 2:

Goal 5: Achieve gender equality and empower all women and girls

The UN says: While the world has achieved progress towards gender equality and women’s empowerment under the Millennium Development Goals (including equal access to primary education between girls and boys), women and girls continue to suffer discrimination and violence in every part of the world.

Gender equality is not only a fundamental human right, but a necessary foundation for a peaceful, prosperous and sustainable world. Unfortunately, at the current time, 1 in 5 women and girls between the ages of 15-49 have reported experiencing physical or sexual violence by an intimate partner within a 12-month period and 49 countries currently have no laws protecting women from domestic violence. Progress is occurring regarding harmful practices such as child marriage and FGM (Female Genital Mutilation), which has declined by 30% in the past decade, but there is still much work to be done to complete eliminate such practices.

Providing women and girls with equal access to education, health care, decent work, and representation in political and economic decision-making processes will fuel sustainable economies and benefit societies and humanity at large. Implementing new legal frameworks regarding female equality in the workplace and the eradication of harmful practices targeted at women is crucial to ending the gender-based discrimination prevalent in many countries around the world.

Sage & Seed’s Indicator 1:

5.1 End all forms of discrimination against all women and girls everywhere5.1 End all forms of discrimination against all women and girls everywhere

Number of men and women in managerial and non-managerial positions within Biji-biji and the pay gap between men and women in the same position.

Sage & Seed’s Indicator 2:

Legal frameworks in place, to promote, enforce and monitor equality and nondiscrimination on any basis, not limited to sex, age, looks, sexual orientation, race, religion, etc.

Goal 7: Ensure access to affordable, reliable, sustainable and modern energy

The UN says: Energy is central to nearly every major challenge and opportunity the world faces today. Be it for jobs, security, climate change, food production or increasing incomes, access to energy for all is essential. Working towards this goal is especially important as it interlinks with other Sustainable Development Goals. Focusing on universal access to energy, increased energy efficiency and the increased use of renewable energy through new economic and job opportunities is crucial to creating more sustainable and inclusive communities and resilience to environmental issues like climate change.

At the current time, there are approximately 3 billion people who lack access to clean-cooking solutions and are exposed to dangerous levels of air pollution. Additionally, slightly less than 1 billion people are functioning without electricity and 50% of them are found in Sub-Saharan Africa alone. Fortunately, progress has been made in the past decade regarding the use of renewable electricity from water, solar and wind power and the ratio of energy used per unit of GDP is also declining.

However, the challenge is far from being solved and there needs to be more access to clean fuel and technology and more progress needs to be made regarding integrating renewable energy into end-use applications in buildings, transport and industry. Public and private investments in energy also need to be increased and there needs to be more focus on regulatory frameworks and innovative business models to transform the world’s energy systems.

Sage & Seed’s Indicator 1:

Number of underserved households provided with alternative energy solutions in comparison to total number of households provided with alternative energy solutions.

Sage & Seed’s Indicator 2:

Goal 8: Promote inclusive and sustainable economic growth, employment and decent work for all

Roughly half the world’s population still lives on the equivalent of about US$2 a day with global unemployment rates of 5.7% and having a job doesn’t guarantee the ability to escape from poverty in many places. This slow and uneven progress requires us to rethink and retool our economic and social policies aimed at eradicating poverty.

A continued lack of decent work opportunities, insufficient investments and under-consumption lead to an erosion of the basic social contract underlying democratic societies: that all must share in progress. Even though the average annual growth rate of real GDP per capita worldwide is increasing year on year, there are still many countries in the developing world that are decelerating in their growth rates and moving farther from the 7% growth rate target set for 2030. As labor productivity decreases and unemployment rates rise, standards of living begin to decline due to lower wages.

Sustainable economic growth will require societies to create the conditions that allow people to have quality jobs that stimulate the economy while not harming the environment. Job opportunities and decent working conditions are also required for the whole working age population. There needs to be increased access to financial services to manage incomes, accumulate assets and make productive investments. Increased commitments to trade, banking and agriculture infrastructure will also help increase productivity and reduce unemployment levels in the world’s most impoverished regions.

Sage & Seed’s Indicator 1:

Biji-biji’s annual growth rate of revenue per employee, calculating interns and trainees.

Sage & Seed’s Indicator 2:

Maintaining a salary cap of maximum 12 times between highest and lowest earner.

Goal 9: Build resilient infrastructure, promote sustainable industrialization and foster innovation

The UN says: Investments in infrastructure – transport, irrigation, energy and information and communication technology – are crucial to achieving sustainable development and empowering communities in many countries. It has long been recognized that growth in productivity and incomes, and improvements in health and education outcomes require investment in infrastructure

Manufacturing is an important driver of economic development and employment. At the current time, however, manufacturing value added per capita is only US$100 in the least developed countries compared to over US$4,500 in Europe and Northern America. Another important factor to consider is the emission of Carbon Dioxide during manufacturing processes. Emissions have decreased over the past decade in many countries but the pace of decline has not been even around the world.

Technological progress is the foundation of efforts to achieve environmental objectives, such as increased resource and energy-efficiency. Without technology and innovation, industrialization will not happen, and without industrialization, development will not happen. There needs to be more investments in high-tech products that dominate the manufacturing productions to increase efficiency and a focus on mobile cellular services that increase connections between people.

Sage & Seed’s Indicator 1:

Number of SEs and NGOs integrated into value chains of Biji-biji, in comparison to total number of suppliers

Sage & Seed’s Indicator 2:

Investment in capacity development mechanisms for employees and departments (e.g. research and development, training and certification, tools and machinery) as a proportion of revenue, disaggregated by divisions.

Goal 10: Reduce inequality within and among countries

Roughly half the world’s population still lives on the equivalent of about US$2 a day with global unemployment rates of 5.7% and having a job doesn’t guarantee the ability to escape from poverty in many places. This slow and uneven progress requires us to rethink and retool our economic and social policies aimed at eradicating poverty.

A continued lack of decent work opportunities, insufficient investments and under-consumption lead to an erosion of the basic social contract underlying democratic societies: that all must share in progress. Even though the average annual growth rate of real GDP per capita worldwide is increasing year on year, there are still many countries in the developing world that are decelerating in their growth rates and moving farther from the 7% growth rate target set for 2030. As labor productivity decreases and unemployment rates rise, standards of living begin to decline due to lower wages.

Sustainable economic growth will require societies to create the conditions that allow people to have quality jobs that stimulate the economy while not harming the environment. Job opportunities and decent working conditions are also required for the whole working age population. There needs to be increased access to financial services to manage incomes, accumulate assets and make productive investments. Increased commitments to trade, banking and agriculture infrastructure will also help increase productivity and reduce unemployment levels in the world’s most impoverished regions.

Sage & Seed’s Indicator 1:

Proportion of people that are living below 50 percent of Malaysian median income.

Sage & Seed’s Indicator 2:

Proportion of the workforce who reported having personally felt discriminated against or harassed within the previous 12 months, with reference to Biji-biji’s Code of Conduct.

Sage & Seed’s Indicator 3:

Labour share of revenue, comprising wages and social protection transfers.

Goal 11: Make cities inclusive, safe, resilient and sustainable

The UN says: Cities are hubs for ideas, commerce, culture, science, productivity, social development and much more. At their best, cities have enabled people to advance socially and economically. With the number of people living within cities projected to rise to 5 billion people by 2030, it’s important that efficient urban planning and management practices are in place to deal with the challenges brought by urbanization.

Many challenges exist to maintaining cities in a way that continues to create jobs and prosperity without straining land and resources. Common urban challenges include congestion, lack of funds to provide basic services, a shortage of adequate housing, declining infrastructure and rising air pollution within cities.

Rapid urbanization challenges, such as the safe removal and management of solid waste within cities, can be overcome in ways that allow them to continue to thrive and grow, while improving resource use and reducing pollution and poverty. One such example is an increase in municipal waste collection. There needs to be a future in which cities provide opportunities for all, with access to basic services, energy, housing, transportation and more.

Sage & Seed’s Indicator 1:

Proportion of Biji-biji’s external projects with access to comprehensive recycling services, where applicable.

Sage & Seed’s Indicator 2:

Number of sustainable policies and solutions that have been documented and published by Biji-biji and that was further adapted by companies, organisations and institutions.

Goal 12: Ensure sustainable consumption and production patterns

The UN says: Sustainable consumption and production is about promoting resource and energy efficiency, sustainable infrastructure, and providing access to basic services, green and decent jobs and a better quality of life for all. Its implementation helps to achieve overall development plans, reduce future economic, environmental and social costs, strengthen economic competitiveness and reduce poverty.

At the current time, material consumption of natural resources is increasing, particularly within Eastern Asia. Countries are also continuing to address challenges regarding air, water and soil pollution.

Since sustainable consumption and production aims at “doing more and better with less,” net welfare gains from economic activities can increase by reducing resource use, degradation and pollution along the whole life cycle, while increasing quality of life. There also needs to be significant focus on operating on supply chain, involving everyone from producer to final consumer. This includes educating consumers on sustainable consumption and lifestyles, providing them with adequate information through standards and labels and engaging in sustainable public procurement, among others.

Sage & Seed’s Indicator 1:

Amount of recyclables collected compared to amount of waste sent to landfill

Sage & Seed’s Indicator 2:

Proportion of upcycled materials used in our own manufactured products, in comparison to new materials.

Sage & Seed’s Indicator 3:

Number of project sustainability reports published.

Sage & Seed’s Indicator 4:

Amount of financial and human resources support provided for sustainability management and environmentally sound technologies.

Goal 13: Take urgent action to combat climate change and its impacts

The UN says: Climate change is now affecting every country on every continent. It is disrupting national economies and affecting lives, costing people, communities and countries dearly today and even more tomorrow. Weather patterns are changing, sea levels are rising, weather events are becoming more extreme and greenhouse gas emissions are now at their highest levels in history. Without action, the world’s average surface temperature is likely to surpass 3 degrees centigrade this century. The poorest and most vulnerable people are being affected the most.

Affordable, scalable solutions are now available to enable countries to leapfrog to cleaner, more resilient economies. The pace of change is quickening as more people are turning to renewable energy and a range of other measures that will reduce emissions and increase adaptation efforts. Climate change, however, is a global challenge that does not respect national borders. It is an issue that requires solutions that need to be coordinated at the international level to help developing countries move toward a low-carbon economy.

To strengthen the global response to the threat of climate change, countries adopted the Paris Agreement at the COP21 in Paris, which went into force in November of 2016. In the agreement, all countries agreed to work to limit global temperature rise to well below 2 degrees centigrade. As of April 2018, 175 parties had ratified the Paris Agreement and 10 developing countries had submitted their first iteration of their national adaptation plans for responding to climate change.

Sage & Seed’s Indicator 1:

Sage & Seed’s Indicator 2:

Goal 17: Revitalize the global partnership for sustainable development

The UN says: A successful sustainable development agenda requires partnerships between governments, the private sector and civil society. These inclusive partnerships built upon principles and values, a shared vision, and shared goals that place people and the planet at the centre, are needed at the global, regional, national and local level.

Urgent action is needed to mobilize, redirect and unlock the transformative power of trillions of dollars of private resources to deliver on sustainable development objectives. Long-term investments, including foreign direct investment, are needed in critical sectors, especially in developing countries. These include sustainable energy, infrastructure and transport, as well as information and communications technologies. The public sector will need to set a clear direction. Review and monitoring frameworks, regulations and incentive structures that enable such investments must be retooled to attract investments and reinforce sustainable development. National oversight mechanisms such as supreme audit institutions and oversight functions by legislatures should be strengthened.

Sage & Seed’s Indicator 1:

Number of science and/or technology partnership agreements and programmes between Biji-biji and external parties.

Sage & Seed’s Indicator 2:

Number of mechanisms in place to ensure logical and consistent adoption and implementation of Biji-biji Sustainability Goals, Targets and Indicators

Sage & Seed’s Indicator 3:

Proportion of Biji-biji targets and indicators reported on, with full disaggregation compared to total list of Biji-biji indicators.

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