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Glossary ... The FAST glossary

Finance Alliance for Sustainable Trade (FAST) ... Annex 4: Glossary of Terms

Burgess COMMENTARY

Peter Burgess

69 Annex 4: Glossary of Terms


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AGRICULTURE.The sector of an economy that includes crop production, animal husbandry, hunting, fishing, and forestry. Source: World Bank AFFORESTATION. Establishment of forest plantations on land that, until then, was not classified as forest. Implies a transformation from non-forest to forest. Source: Convention on Biological Diversity- United Nations Environmental Program (CBD-UNEP) AGREEMENT. An (economic) agreement is typically a written arrangement that is mutually accepted by all parties; it is an expression of the intent or willingness of two or more parties to bind to the terms determined by negotiation, and must be sufficiently definite before it can be enforced by a court. Source: Merriam-Webster’s Dictionary of Law. Retrieved May 13, 2011 ASSET. Assets are economic resources. Anything tangible or intangible that is capable of being owned or controlled to produce value and that is held to have positive economic value is considered an asset. Assets represent ownership of value that can be converted into cash (although cash itself is also considered an asset). Source: GIIN-IRIS ASSOCIATION BARGAINING. See Collective Bargaining FAST-SIAMT 1.070 AUDITING PROCEDURES. Audit: An exercise to determine if there is an adequate and effective system of internal controls for providing reasonable assurance with respect to: *Integrity of financial and operational information; compliance with regulations, rules, policies and procedures in all operations; and safeguarding of assets; *The economic and efficient use of resources in operations and identifying opportunities for improvement in a dynamic and changing environment; and Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. External auditing is the review of the financial statements of a company or any other legal entity (including governments), resulting in the publication of an independent opinion on whether those financial statements are relevant, accurate, complete, and fairly presented to the firm’s stakeholders, tax authorities, banks, regulators, etc. Source: UN


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BIODIVERSITY. Biodiversity—short for biological diversity—means the diversity of life on Earth in all its forms—the diversity of species, of genetic variations within one species, and of ecosystems. It includes all organisms, species, and populations; the genetic variation among these; and their complex assemblages of communities and ecosystems. Three levels of biodiversity are commonly discussed—genetic, species, and ecosystem diversity. 1. Genetic diversity is all the different genes contained in all the living species including individual plants, animals, fungi, and microorganisms. 2. Species diversity is all the different species, as well as the differences within and between different species. 3. Ecosystem diversity is all the different habitats, biological communities and ecological processes, as well as variation within individual ecosystems. Source: UNEP-CBD BIODIVERSITY CONSERVATION. The management of human interactions with genes, species, and ecosystems so as to provide the maximum benefit to the present generation while maintaining their potential to meet the needs and aspirations of future generations; encompasses elements of saving, studying, and using biodiversity. Source: UNEP-CBD ANNEX 4 FAST-SIAMT 1.071 BIODIVERSITY CONSERVATION PLAN. (1) A plan which establishes specific activities and targets for achieving the objective of biodiversity conservation. (2) A Biodiversity conservation plan outlines methods for maintaining and protecting species and habitats. A biodiversity conservation plan involves making inventories of biological information for selected species or habitats; assessing the conservation status of species within specified ecosystems; creation of targets for conservation and restoration; and establishing budgets, timelines and institutional partnerships for implementing the plan. Source: (1) Wikipedia (2) UNEP-CBD BOARD OF DIRECTORS (BOD). A group of people legally responsible to govern a corporation and is responsible to the shareholders and sometimes to stakeholders as well. Source: GIIN-IRIS: B Lab BUSINESS ACTIVITIES. Activities such as producing, transforming, distributing, buying, selling, renting and investing performed as part of the commercial enterprise. The activity of providing goods and services involving financial and commercial aspects. Source: Wikipedia BUSINESS CAPACITY DEVELOPMENT. Capacity building (development) are activities which strengthen the knowledge, abilities, skills and behaviour of individuals and improve institutional structures and processes such that the organization can efficiently meet its mission and goals in a sustainable way. Source: Convention on Biological Diversity -International Union for Conservation of Nature-Commission on Education and Communication (CBD-IUCN-CEC) BUSINESS PLAN. A business plan is a formal statement of a set of business goals, the reasons why they are believed attainable, and the plan for reaching those goals. It may also contain background information about the organization or team attempting to reach those goals. A business plan represents all aspects of business planning process; declaring vision and strategy alongside sub-plans to cover marketing, finance, operations, human resources as well as a legal plan, when required. A business plan is a bind summary of those disciplinary plans. Source: Erst and Young. Eric S. Siegel, Brian R. Ford, Jay M. Bornstein (1993). ‘The Ernst & Young Business Plan Guide’ (New York: John Wiley and Sons) ANNEX 4 FAST-SIAMT 1.072 BUSINESS RELATIONSHIP. Relationship established between the enterprise and another entity, such as a buyer or supplier, for the purpose of conducting commercial activities. Source: FAST BUYER CONTRACTS OR AGREEMENTS. See Contract; See Agreement.


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CERTIFICATION. A certification must be from a third party, be standards-based, have those standards be transparent, and have an assurance process. The process of certification is carried out by a recognized body, independent from interested parties, which demonstrates that a product or organization complies with the requirements defined in the standards or technical specifications. Source: GIIN-IRIS CHILD LABOUR. A child in the context of the workforce is someone aged 15 or younger in developed countries and 14 or younger in developing countries. Child labour is often defined as work that deprives children of their childhood, potential schooling as well as their personal dignity. And, in general, it is considered harmful to the child’s physical and mental development. Source: International Labour Organization (ILO) CLIENT PROTECTION PRINCIPLES. The Client Protection Principles describe the minimum protection microfinance clients should expect from providers. These Principles are distilled from the path-breaking work of providers, international networks, and national microfinance associations to develop pro-consumer codes of conduct and practices. While the Principles are universal, meaningful and effective implementation will require careful attention to the diversity within the provider community and conditions in different markets and country contexts. Over the past several years, consensus has emerged that providers of financial services to low-income clients should adhere to the following six core principles: - Avoidance of Over-Indebtedness. - Ethical Staff Behavior. - Transparent and Responsible Pricing. - Mechanisms for Redress of Grievances. - Appropriate Collections Practices. - Privacy of Client Data. Source: Consulting Group to Assist the Poor (CGAP) ANNEX 4 FAST-SIAMT 1.073 CO-OPERATIVE. A co-operative is an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly-owned and democratically-controlled enterprise. Source: International Co-operative Alliance COLLECTIVE BARGAINING. Collective bargaining is a process of decision-making between parties representing employer and employee interests which implies the negotiation and continuous application of an agreed set of rules to govern the substantive and procedural terms of the employment relationship. Source: ILO COMMUNITY ACTORS (Community Stakeholders). Members of the community who can affect or are affected by an organization’s policies, decisions or actions. Community actors are actively involved in determining a decision or action in a project. For further information, consult definition of stakeholder. Source: ICRA (International Centre for Development Oriented Research in Agriculture) COMMUNITY PROJECTS. (1) Community is defined as a heterogeneous group of people living and/or working together sharing norms, values, and concerns, with common systems and structures for leadership, problem-solving and communication. (2) Projects: A project can be described as a process of providing inputs over a limited period using the resources provided, activities are conducted and outputs (results) generated, in order to achieve a previously defined impact (the project purpose).(3) Project Cycle: The project cycle can be explained in terms of five phases: identification, preparation and formulation, review and approval, implementation, and evaluation. Source: (1) United Nations Development Program (UNDP) (2) German Cooperation Agency (GTZ) (3) UNDP COMMUNITY-LEVEL DELEGATES OR COMMITTEE MEMBERS. Appointed individuals that represent the community in other structures, programs and/or institutions; members of committees or organized groups the community has established to deal with issues concerning community daily life, example: education committee; health committee. Source: FAST COMPULSORY LABOUR. See Forced Labour ANNEX 4 FAST-SIAMT 1.074 CONTRACT. A contract is an agreement with specific terms between two or more persons or entities in which there is a promise to do something in return for a valuable benefit, such as payment. The existence of a contract requires that there be a proposed and accepted offer, a promise to perform by one entity and a promise to provide a valuable benefit by the other (payment), and a time or event by which performance must occur. Source: GIIN-IRIS CONSERVATION MANAGEMENT. The management of human use of nature so that it may yield the greatest sustainable benefit to current generations while maintaining its potential to meet the needs and aspirations of future generations. This involves the use of components of biological diversity in a way and at a rate that does not lead to the long-term decline of biological diversity, Source: UNEP-CBD CREDIT. Credit is an amount for which there is a specific obligation of repayment. Credits include loans, trade credits, bonds, bills, etc., and other agreements which give rise to specific obligations to repay over a period of time usually, but not always, with interest. Credit is extended to finance consumption and investment expenditures, and financial transactions. Source: European Central Bank CROP LOSS. Crop loss refers to a significant reduction in crop yield to a level in which there can be no recovery of costs, recognized also as a financial loss. This can be due to in climate weather conditions, crop disease, drought, or any traditionally natural occurrence. Source: International Rice Research Institute ANNEX 4 FAST-SIAMT 1.075


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DEFORESTATION. Deforestation implies the long-term or permanent loss of forest cover and implies transformation into another land use. Such a loss can only be caused and maintained by a continued human-induced or natural perturbation. Deforestation includes areas of forest converted to agriculture, pasture, water reservoirs and urban areas. The term specifically excludes areas where the trees have been removed as a result of harvesting or logging, and where the forest is expected to regenerate naturally or with the aid of silvicultural measures. Unless logging is followed by the clearing of the remaining logged-over forest for the introduction of alternative land uses, or the maintenance of the clearings through continued disturbance, forests commonly regenerate, although often to a different, secondary condition. In areas of shifting agriculture, forest, forest fallow and agricultural lands appear in a dynamic pattern where deforestation and the return of forest occur frequently in small patches. Source: CBD-UNEP DEPRECIATION AND AMORTIZATION. Depreciation and Amortization is the systematic allocation of depreciable assets - tangible (depreciation) and intangible (amortization) - over the assets’ useful lives. Source: GIIN-IRIS DISCRIMINATION. Any distinction, exclusion or preference made on the basis of race, colour, sex, religion, political opinion, national extraction or social origin, which has the effect of nullifying or impairing equality of opportunity or treatment in employment or occupation. Source: ILO


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ECOSYSTEM INTEGRITY. (1) The extent to which the interrelationships among and within ecosystems remain intact so that the number and variety of living organisms can be maintained. (2) Ecosystems: Ecosystems are self-regulating communities of plants and animals interacting with each other and with their non-living environment—forests, wetlands, mountains, lakes, rivers, deserts and agricultural landscapes. Ecosystems are vulnerable to interference as pressure on one component can upset the whole balance. They are also very vulnerable to pollution. Many ecosystems have already been lost, and many others are at risk. The world’s forests house about half of global biodiversity. But they are disappearing at a rate of 0.8% per year. Tropical forests are vanishing at an annual rate of 4%. Source: (1) World Bank (2) CBD ANNEX 4 FAST-SIAMT 1.076 ECOSYSTEM SERVICES. Ecosystem services are processes by which the environment produces benefits useful to people, akin to economic services. They include: Provision of clean water and air; Pollination of crops; Mitigation of environmental hazards; Pest and disease control; Carbon sequestration; Accounting for the way in which ecosystems provide economic goods is an increasingly popular area of development. The concept of ecosystem services is similar to that of natural capital. The Millennium Ecosystem Assessment released in 2005 showed that 60% of ecosystem services are being degraded or used unsustainably. Source: CBD ENVIRONMENTAL ACTION PLAN (EAP). See also Biodiversity Conservation Plan. (1) A written plan of implementation often detailing the timelines, stages, roles and/or responsibilities of projects related to the strategy’s environmental objectives. (2) An EAP can be defined as a medium term strategic policy document that reflects the fundamental elements of the current environmental thinking and problem understanding. Source: (1) CBD-IUCN-CEC (2) European Parliament


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FARMER. A farmer is a person, engaged in agriculture who raises living organisms for food or raw materials, generally including livestock husbandry and growing crops such as produce and grain. A farmer might own the farmed land or might work as a labourer on land owned by others. Their products might be sold either to a market, in a farmers’ market or perhaps directly from a farm. In a subsistence economy, farm products might to some extent be either consumed by the farmer’s family or pooled by the community. Source: Modified source Wikipedia For the definition of smallholder farmers, there are several approaches. The glossary outlines two that we consider useful and valid and could apply to different regional and country context: -Smallholder farmers are marginal and sub-marginal farm households, which own and/or cultivate less than 10 hectares of land. Common characteristics of smallholder farmers are that they have low access to technology, limited resources in terms of capital, skills, and risk management, depend on family labor for most activities, and have limited capacity in terms of storage, marketing, and processing. Source: UN Food and Agriculture Organization (FAO), International Institute for Environment and Development ANNEX 4 FAST-SIAMT 1.077 -Smallholder farmers are marginal and sub-marginal farm households that own and/or cultivate less than 2 hectares of land. Common characteristics of smallholder farmers are that they have low access to technology, limited resources in terms of capital, skills, and risk management, depend on family labor for most activities, and have limited capacity in terms of storage, marketing, and processing. Source: UN Food and Agriculture Organization (FAO), Syngenta Foundation in GIIN-IRIS FOB MARKET PRICE. Free On Board. A shipping term which indicates that the supplier pays the shipping costs (and usually also the insurance costs) from the point of manufacture to a specified destination, at which point the buyer takes responsibility FORCED LABOUR. Work or service exacted from a person under threat or penalty, which includes penal sanctions and the loss of rights and privileges, where the person has not offered him/herself voluntarily (ILO 2001a) 5. Source: ILO FRESH PRODUCT (OR PRIMARY GOODS/ PRODUCTS). Goods--for example, iron ore, diamonds, wheat, copper, oil, or coffee-that are used or sold as they are found in nature. They are also called commodities. Source: World Bank FULL-TIME EMPLOYEE. Full-time employees work year round and typically work 35-50 hours per week. If local definitions of full-time equivalency differ, use appropriate standard. Source: GIIN-IRIS


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HEALTHCARE SERVICES (PRIMARY). Primary: Health services, including family planning, clean water supply, sanitation, immunization, and nutrition education, that are designed to be affordable for both the poor people who receive the services and the governments that provide them; the emphasis is on preventing disease as well as curing it. Secondary health services are those provided by medical specialists who generally do not have first contact with patients, for example, cardiologists, urologists and dermatologists. In certain locations, secondary care is synonymous to “hospital care.”. Source: World Bank ANNEX 4 FAST-SIAMT 1.078 HECTARES DIRECTLY CONTROLLED. Hectares under the organization’s direct control are those for which the organization completely controls land use through direct operation or management. For example, this would include situations where the organization’s employees cultivate the land directly. Note that land ownership is not always equivalent to control. For example, in situations where land is leased to another entity or individual to cultivate, land is only directly controlled if the lease is accompanied by exhaustive land use criteria. Source: GIIN-IRIS HECTARES INDIRECTLY CONTROLLED. Hectares under the organization’s indirect control are those for which the organization exerts significant influence or total control over land use practices, but that the organization does not directly cultivate or manage. Examples in which the organization indirectly controls land may include purchase contracts specifying cultivation techniques on a significant portion of an operating entity’s land. As another example, organizations, such as cooperatives, source agricultural inputs from smallholder farmers on the condition that smallholders adhere to organic land use practices. Source: GIIN-IRIS


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INCOME (OF THE FARMER). (1) Income accruing to farmer household members. Sources include net farm income; other employment income (made up of wages and salaries and non-farm -employment from household members); and other sources of incomes such as passive income and remittances. (2) The ILO’s Resolution concerning household income and expenditure statistics defines income as follows: “Household income consists of all receipts whether monetary or in kind (goods and services) that are received by the household or by individual members of the household at annual or more frequent intervals, but excludes windfall gains and other such irregular and typically onetime receipts. Household income receipts are available for current consumption and do not reduce the net worth of the household through a reduction of its cash, the disposal of its other financial or non-financial assets or an increase in its liabilities.” Source: (1) Modified source: Government of Canada (2) ILO INNOVATION (RELATED TO INNOVATIVE TECHNIQUES). An innovation is the implementation of a new or significantly improved product (good or service), or process, (or technique), a new marketing method, or a new organizational method in business practices, workplace organization or external relations. Source: Organization for Economic Cooperation and Development (OECD) ANNEX 4 FAST-SIAMT 1.079 INSURANCE (PLAN, POLICY). 1. The act, system, or business of insuring property, life, one’s person, etc., against loss or harm arising in specified contingencies, as fire, accident, death, disablement, or the like, in consideration of a payment proportionate to the risk involved. 2. Coverage by contract in which one party agrees to indemnify or reimburse another for loss that occurs under the terms of the contract. 3. The contract itself, set forth in a written or printed agreement or policy. 4. The amount for which anything is insured. 5. An insurance premium. 6. Any means of guaranteeing against loss or harm. Source: Business Dictionary


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JOB DESCRIPTIONS. A job description is a list that a person might use for general tasks, or functions, and responsibilities of a position. It may often include to whom the position reports, specifications such as the qualifications or skills needed by the person in the job, or a salary range. Job descriptions are usually narrative,[1] but some may instead comprise a simple list of competencies; for instance, strategic human resource planning methodologies may be used to develop a competency architecture for an organization, from which job descriptions are built as a shortlist of competencies. Source: Wikipedia


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LOCAL MARKET (OR DOMESTIC MARKET). The country you live in or where a company is based, seen as a place where goods or services can be sold. As opposed to Export Market: A foreign country to which goods and services from a particular country are sold. Source: Financial Times ANNEX 4 FAST-SIAMT 1.080


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MODERN AND SUSTAINABLE CULTIVATION TECHNIQUES. (1) The techniques used for cultivating crops and commodities are time and cost-efficient (modern) and maintain the ecological integrity (sustainable); (2) Referred to sustainable agriculture techniques: - Satisfy human food and fiber needs; - Enhance environmental quality and the natural resource base upon which the agricultural economy depends; - Make the most efficient use of nonrenewable resources and on-farm resources and integrate, where appropriate, natural biological cycles and controls; - Sustain the economic viability of farm operations; and - Enhance the quality of life for farmers and society as a whole.” Source: (1) FAST (2) United States Department of Agriculture (USDA)


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NET CASH FLOW. Net cash flow equals inflows less outflows of cash and cash equivalents. Source: GIIN-IRIS NON-RENEWABLE ENERGY. (1) Energy from sources that can not be replenished (made again) in a short period of time. (2) Non-renewable energy sources include oil and petroleum products (including gasoline, diesel fuel, heating oil, and propane), natural gas, coal, and Uranium (nuclear energy). Source: (1) World Bank (2) US Department of Energy OCCUPATIONAL INJURY. An occupational injury is any personal injury, disease or death resulting from an occupational accident. An occupational accident is an unexpected and unplanned occurrence, including acts of violence, arising out of or in connection with work which results in one or more workers incurring a personal injury. Source: ILO ANNEX 4 FAST-SIAMT 1.081


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ONGOING BUSINESS RELATIONSHIP. See: business relationship ORGANIC. (1) Organic agriculture: Holistic production management systems, which promote and enhance agroecosystem health, including biodiversity, biological cycles and soil biological activity. It emphasizes the use of management practices in reference to the use of off-farm inputs, taking into account that regional conditions require locally adapted systems. This is accomplished by using, where possible, cultural, biological and mechanical methods, as opposed to using synthetic materials, to fulfill any specific function within the system. Organic agriculture is based on minimizing the use of external inputs, avoiding the use of synthetic fertilizer and pesticides. Many of the techniques used (such as inter-cropping, rotation of crops, double digging, mulching, integration of crops and livestock) are practiced under various agricultural systems. What makes organic agriculture unique, as regulated under various laws and certification programs is that: almost all synthetic inputs are prohibited, and soil building practices are mandated to improve soil tilt and fertility while reducing nitrate leaching, weed, pest and disease problem) in order to avoid harm to human health and the environment. Source: FAO (2) Organic agriculture is a production system that sustains the health of soils, ecosystems and people. It relies on ecological processes, biodiversity and cycles adapted to local conditions, rather than the use of inputs with adverse effects. Organic agriculture combines tradition, innovation and science to benefit the shared environment and promote fair relationships and a good quality of life for all involved. Source: International Federation of Organic Agriculture Movements (IFOAM) ORGANIC CERTIFICATION. (See also organic and certification). Related to IFOAM’s Organic Guarantee System (OGS): is designed to a) facilitate the development of organic standards and third-party certification worldwide, and to b) provide an international guarantee of these standards and organic certification. The IFOAM Basic Standards and the Accreditation Criteria are two of the main components of the OGS (Organic Guarantee System). Source: IFOAM ANNEX 4 FAST-SIAMT 1.082


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POTABLE WATER. Water that is safe for drinking and cooking according to defined standards. Related to: Safe Water: Water that is safe for drinking and bathing including treated surface water and untreated but uncontaminated water, such as from springs, sanitary wells, and protected boreholes. Source: World Bank Related to: Drinking Water Standards: Standards determining the quality of drinking water in the context of prevailing environmental, social, economic, cultural conditions, with reference to the presence of suspended matter, excess salts, unpleasant taste, and all harmful microbes. Meeting of those standards does not necessarily imply purity. Source: GIIN-IRIS POVERTY. Poverty is the state of one who lacks a certain amount of material possessions or money. People can be categorized as very poor if they are living below an absolute extreme poverty line. “Common extreme poverty lines include (1) persons in the bottom 50% of those living below the poverty line established by the national government, or (2) persons living on less than US $1.00 per day (technically $1.08 per day per capita at 1993 purchasing power parity (PPP) or on less than of US $1.25 per day at 2005 PPP. Source: World Bank POVERTY ASSESSMENT. A common method used to measure poverty is based on incomes or consumption levels. A person is considered poor if his or her consumption or income level falls below some minimum level necessary to meet basic needs. This minimum level is usually called the “poverty line”. What is necessary to satisfy basic needs varies across time and societies. Therefore, poverty lines vary in time and place, and each country uses lines, which are appropriate to its level of development, societal norms and values. Source: World Bank ANNEX 4 FAST-SIAMT 1.083 - International poverty line. An income level established by the World Bank to determine which people in the world are poor- set at $1 a day per person in 1985 international purchasing power parity (PPP) prices (equivalent to $1.08 in 1993 PPP prices). A person is considered poor if he or she lives in a household whose daily income or consumption is less than $1 per person. Although this poverty line is useful for international comparisons, it is impossible to create an indicator of poverty that is strictly comparable across countries. The level of $1 a day per person is close to national poverty lines in low-income countries but considerably lower than those in high-income countries. For comparing poverty levels across middle-income countries, international poverty lines of $2, $4, and $11 a day per person are considered to be more appropriate. Source: World Bank - Poverty line (national). The income level below which people are defined as poor. The definition is based on the income level people require to buy life’s basic necessities—food, clothing, housing — and satisfy their most important socio-cultural needs. The poverty line changes over time and varies by region. Also called subsistence minimum. Official national poverty line is determined by a country’s government Source: World Bank PRICE PREMIUM. (1) Premium pricing is the practice of keeping the price of a product or service artificially high in order to encourage favorable perceptions among buyers, based solely on the price. (2) Fairtrade Premium is an amount paid to producers in addition to the payment for their products. The use of the Fairtrade Premium is restricted to investment in the producers’ business, livelihood and community (for a small producer organization or contract production set-up) or to the socio-economic development of the workers and their community (for a hired labour situation). Its specific use is democratically decided by the producers. Source: (1) Gittings, Christopher (2002). The Advertising Handbook. New York (2) Fair Trade Labour Organization PRIMARY TRANSFORMATION. The primary transformation takes places in the primary sector of the economy and it involves changing natural resources into primary products. Most products from this sector are considered raw materials for other industries. Major businesses in this sector include agriculture, agribusiness, fishing, forestry and all mining and quarrying industries. Source: Staatz, John M. (1998) What is agricultural transformation. Michigan State University ANNEX 4 FAST-SIAMT 1.084 PRODUCT DAMAGE. Crop damage involves the destruction or damage of inventory due to issues involving production, transport, or inability to meet particular requirements such as quality standards. Source: Business Dictionary


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REFORESTATION. Planting of forests on lands that have previously contained forest but have since been converted to some other use. Source: Intergovernamental Panel on Climate Change (IPCC) REFORESTATION. Reforestation is the re-growth of forests after a temporary (< 10 years.) condition with less than 10% canopy cover due to human-induced or natural perturbations. Source: CBD-UNEP RENEWABLE SOURCES OF ENERGY. Renewable energy is derived from natural processes that are replenished constantly. This includes electricity and heat generated from solar, wind, ocean, hydropower, biomass, geothermal resources, and hydrogen derived from renewable resources. Global Reporting Initiative (GRI). Source: GIIN-IRIS RESEARCH AND DEVELOPMENT. Research and development is any creative and systematic activity undertaken in order to increase the stock of knowledge, including knowledge of man, culture and society, and the use of this knowledge to devise new applications. It involves fundamental research, applied research in such fields as agriculture, medicine, industrial chemistry, and experimental development work leading to new devices, products or processes. In particular, research and development by a market producer is an activity undertaken for the purpose of discovering or developing new products, including improved versions or qualities of existing products, or discovering or developing new or more efficient processes of production. Source: United Nation Educational Scientific and Cultural Organization (UNESCO) ANNEX 4 FAST-SIAMT 1.085 RETURN ON ASSESTS (ROA). (1) An indicator of how profitable a company is relative to its total assets. (2) ROA gives an idea as to how efficient management is at using its assets to generate earnings. Source: (1) Investopedia (2) GIIN-IRIS Calculation: Net Income Before Donations / Average Total Assets. Average Total Assets: (Total Assets at the beginning of the period + Total Assets at the end of the period) / 2. RETURN ON EQUITY (ROE). (1)The amount of net income returned as a percentage of shareholders equity. (2) Return on equity measures a corporation’s profitability by revealing how much profit a company generates with the money shareholders have invested. Source: (1) Investopedia (2) GIIN-IRIS Calculation: Net Income Before Donations / Average Equity or Net Assets Average Equity or Net Assets: (Average Equity or Net Assets at the beginning of the period + Average Equity or Net Assets at the end of the period) /2” REVENUE (EARNED REVENUE). (1) Revenue is the amount of money that is brought into a company by its business activities in a given reporting period. (2) Revenue resulting from all business activities during the reporting period. Earned revenue is total revenue less “Contributed Revenue” (Grants and Donations). Source: (1) FAST (2)GIIN-IRIS RISK EVALUATION OR ASSESSMENT. (1) The term “risk assessment” is used to describe a wide range of formal and informal methodologies in a range of disciplines. Most commonly, risk assessments attempt to characterize potential adverse impacts associated with particular activities or events. Risk assessments attempt to characterize potential adverse impacts associated with particular activities or events. (2) The use of scientific data to identify and characterize the nature and magnitude of hazards, if any, and the likelihood of hazards being realized. Source: (1)CBD-UNEP (2) CBD-UNEP ANNEX 4 FAST-SIAMT 1.086 SANITATION FACILITIES. Basic sewerage and drainage systems that collect waste water and then clean and redistribute it. Source: World Bank


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SAVINGS. Income not used for current consumption. Source: World Bank SAVINGS ACCOUNTS. A deposit account held at a bank or other financial institution that provides principal security and a modest interest rate. Source: Investopedia SEASONAL EMPLOYMENT. See temporary employees. Source: GIIN- IRIS SECONDARY TRANSFORMATION. (1) Secondary transformation involves aggregating, packing, packaging, purifying or processing the raw materials. It is related to the secondary sector of the economy, which takes the output of the primary sector and manufactures finished goods (agroindustry). (2) Agro-industry: post-harvest activities involved in the transformation, preservation and preparation of agricultural production for intermediary or final consumption (with emphasis on food). (1) Modified source: Staatz, John M. (1998) What is Agricultural Transformation. Michigan State University (2) Wilkinson John & Rocha Rudi. Global Agroindustries Forum, New Delhi 8-11 April 2008 SMALL AND MEDIUM ENTERPRISES (SME). (1) Businesses with approximately 250 employees or less and have financial needs that range between 20,000 and 1,000,000 US$. (2) Businesses with fewer than 50 employees are defined as small. Businesses with more than 50 but fewer than 250 employees are defined as medium. Source: (1) FAST based on World Bank definition of Micro-Small and Medium Enterprises (2) GIIN-IRIS ANNEX 4 FAST-SIAMT 1.087 SOIL CONSERVATION. Soil conservation is the protection of soil from erosion and other types of deterioration, so as to maintain soil fertility and productivity. It generally includes watershed management and water use. Source: UN STAKEHOLDERS. A stakeholder is a person or group with an interest in an activity and or outcome. It is a term frequently associated with sustainable development. Stakeholders may be internal or external to a group or organization and may be direct or indirect beneficiaries of an activity or outcome. Sustainable Development promotes cross-sectoral stakeholder engagement in the planning and implementation of actions. Source: UNDP STANDARD ACCOUNTING PRACTICES. A set of rules that a company must follow when reporting information on its financial statement. The standard accounting practice guidelines allow companies to be compared to each other because they have followed the same rules. For example, the standard methods in the U.S. are referred to as Generally Accepted Accounting Principles, in China are referred as Chinese Accounting Standards. There are also the International Financial reporting Standards, which are principles-based standards, interpretations and the framework (1989). Source: International Accounting Standards Board (IASB) SUPPLIER. Business (or an individual) that provides goods or services to an organization to help move a product or service from the organization to its customer. Source: GIIN-IRIS SUSTAINABLE CULTIVATION TECHNIQUES. See Modern and Sustainable Cultivation Techniques. SUSTAINABLE DEVELOPMENT. Development that meets the needs* of the present without compromising the ability of future generations to meet their own needs. Source: World Commission on Environment and Development *FAST note: It could be economic, social, cultural, human and environmental needs ANNEX 4 FAST-SIAMT 1.088


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TEMPORARY EMPLOYEE. Temporary employees are defined as seasonal and contract employees. Seasonal employees are primarily used in agriculture or fisheries. Contracted employees are generally hired for the completion of a specific task. Source: GIIN-IRIS TERTIARY TRANSFORMATION. The tertiary sector of the economy (also known as the service sector or the service industry) is one of the three economic sectors, the others being the secondary sector (approximately the same as manufacturing) and the primary sector (agriculture, fishing, and extraction such as mining). The service sector consists of the “soft” parts of the economy, i.e. activities where people offer their knowledge and time to improve productivity, performance, potential, and sustainability. The basic characteristic of this sector is the production of services instead of end products. Services (also known as “intangible goods”) include attention, advice, experience, and discussion. The tertiary sector of industry involves the provision of services to other businesses as well as final consumers. Services may involve the transport, distribution and sale of goods from producer to a consumer, as may happen in wholesaling and retailing, or may involve the provision of a service, such as in pest control or entertainment. The goods may be transformed in the process of providing the service, as happens in the restaurant industry. However, the focus is on people interacting with people and serving the customer rather than transforming physical goods. Source: Wikipedia TRANSPORT INSURANCE. Insurance that provides security or protection against crop damage or loss of a producer’s crop yield during its transportation. Source: FAST


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VULNERABLE AND PREVIOUSLY EXCLUDED. Minority or previously excluded should relate to local guidelines for places with well-established policies (e.g., South Africa: Broad Based Black Economic Empowerment (BBBEE) definition of previously excluded, India: based on backward caste), otherwise provide footnote as to methodology. Source: GIIN-IRIS ANNEX 4 FAST-SIAMT 1.089


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WAREHOUSE INSURANCE. Insurance that provides security or protection against damage or loss of a producer’s crop yield during its storage in a warehouse or other crop storage facility. Source: FAST WASTE (GENERATION). Waste refer here to materials that are not prime products (i.e. products produced for the market) for which the generator has no further use for own purpose of production, transformation or consumption, and which he discards, or intends or is required to discard. Wastes may be generated during the extraction of raw materials during the processing of raw materials to intermediate and final products, during the consumption of final products, and during any other human activity. [The following] are excluded: # - Residuals directly recycled or reused at the place of generation (i.e. establishment); # - Waste materials that are directly discharged into ambient water or air. Source: OECD WASTEWATER. Water that carries wastes from homes, businesses, and industries. This is usually a mixture of water and dissolved or suspended solids. Source: UNEP in GIIN-IRIS WATER CONSERVATION. Water conservation refers to efforts made to reduce the total amount of water needed to carry out current processes or tasks. The term does not include overall reduction in water consumption from reduced organizational activities (e.g., partial outsourcing of production). Conservation efforts include organizational or technological innovations that allow a defined process or task to consume water more efficiently. This includes improved water management practices, process redesign, the conversion and retrofitting of equipment (e.g., water-efficient equipment), or the elimination of unnecessary water use due to changes in behavior. Source: GIIN-IRIS ANNEX 4 FAST-SIAMT 1.0

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