Causality & Funding
General Information & Description – 6.1 Causality & Funding
Certificate Holders should be able to demonstrate overall that the activities associated with and the improvements being generated by the intervention were not occurring prior to the causal action and that the changes would not have occurred without the intervention.
Causality and Funding Sources of Intervention
Three key methods that a “Certificate Holder” (in this case, Company A) can use to encourage change within their supply chain, ultimately resulting in the implementation of new, sustainable, or improved practices. Let’s break down each of these methods:
- Direct Financial Investment
- Company A directly invests in its suppliers by providing them with the necessary training and equipment. This investment helps bridge the gap in knowledge and resources, empowering suppliers to implement new methods.
- Outcome: The result of this direct investment is the successful adoption of new practices, such as better crop management, sustainable forestry, and improved industrial processes.
2. Supplier Incentives
- Company A encourages change through financial incentives, specifically offering a price premium to suppliers who adopt certain new practices. This motivates suppliers to transition more quickly, as they are financially rewarded for compliance.
- Outcome: Like with direct investment, this intervention also leads to the adoption of new practices.
3. Procurement Requirements
- Company A can also establish strict sourcing standards, requiring suppliers to meet certain criteria as a condition of doing business. These procurement requirements act as a form of compliance, ensuring that suppliers align with Company A’s goals.
- Outcome: This method ensures that suppliers adopt new practices as part of a contractual agreement, fostering long-term adherence to sustainability and operational goals.
In all three approaches, the key outcome is the adoption of new practices by suppliers, which represent tangible improvements in agriculture, sustainability, and industrial processes.
By understanding these intervention strategies, you can better appreciate how organizations like Company A drive meaningful change through both financial and regulatory incentives, ultimately promoting industry-wide improvements in practice and sustainability.
Causality: Examples of providing evidence
Key Questions
- Is it clear how the Certificate Holder has contributed to or enabled the various interventions within the program, and the resulting emissions benefit?
- Is it clear what evidence will be provided to prove this contribution?
- Examples of evidence: invoices for technical training, farmer training records, receipts of purchased equipment, documentation of supplier incentives, requirements, or other contracts that demonstrate an incentive to adopt the proposed activities.
- Does this evidence demonstrate that the activities were not taking place prior to the considered contributions, and does this evidence demonstrate the start date?