Session 10

Question 1

What are VSS?

Answer 1

Voluntary Sustainability Standards = market-based regulatory instruments operating through certification schemes and aim to promote economic, social, and environmental “upgrading” in trade.

Question 2

How do VSS function?

Answer 2

By…

• Integrating existing international rules and agreements into their standards.
• Translating these principles into specific, measurable standards and benchmarks.
• Establishing systems for conformity assessment and monitoring, often using accredited third-party certifiers.

Question 3

Which three key mechanisms are identified through which VSS institutional design can foster compliance?

Answer 3

Enforcement mechanism

Market incentives mechanism

Capacity-building mechanism

Question 4

What are some of the limitations/ challenges of VSS?

Answer 4

Reach of Sustainability Requirements (to all producers, like second and third-tier suppliers because of the complex and multi-tiered global value chains)

Effectiveness in Achieving Tangible Sustainability Outcomes (VSS adoption alone may not be sufficient for substantial change)

Resource Gap (the growing gap between the financial resources generated through VSS and the resources needed for producers to implement meaningful sustainability standards)

Weak Governance Institutions

Limited Involvement of Local Producers

Lack of Standardized Definition of Sustainability (makes it difficult to precisely measure the cumulative impact of VSS)

Question 5

What is the role of _______ in fostering VSS compliance?

1) Watchdog Civil Society Organizations and NGOs

2) Demand-Side Actors (Buyers, Consumers, Public Sector, NGOs)

3) Public Sector, NGOs, Donor Organizations, and Development Actor

Answer 5

1) They monitor adopters, draw attention to noncompliance, and conduct naming-and-shaming campaigns

2) They influence the effectiveness of VSS sanctions and provide market incentives for compliance.

3) They provide training and technical, material, or financial support that can improve adopters’ capacity to comply.

Question 6

What actions are suggested to improve the effectiveness of VSS?

Answer 6

Governments and international organizations can establish recognition systems to distinguish credible standards (“certifying the certifiers”).

Supporting and promoting mutual recognition between VSS can foster common regulatory frameworks.

Further harnessing the market-based potential of VSS requires providing more transparency to consumers.

Generating more financial resources per certified unit is crucial to address the resource gap and support less sustainable producers.

Question 7

Which are the top three sectors where VSS are adopted?

Answer 7

Agriculture, consumer products and processed food.

Question 8

What are the three steps in VSS standard-setting?

Answer 8

1 - Formulate general principles based on international treaties and conventions.

2 - Refine the general principles into more specific standards and criteria.

3 - Operationalize the standards and criteria through one or more specific and measurable indicators.

Question 9

What are some barriers to VSS uptake?

Answer 9

Cost of certification and compliance

Lack of incentives

Socio-political resistance to VSS

Maintaining certification over time

Question 10

What is the impact of VSS?

Answer 10

Overall a positive impact on the different sustainability dimensions, but the effects remain mixed and are highly context-specific.

Some studies have found a positive effect on environmental outcomes but not on social or economic outcomes, or the
other way around.