Establishing a new norm
The year 2022 was about setting a new norm and many firsts! Solidaridad’s first regenerative agriculture certification paved the path for securing the health of the land in an economically viable way for the farmers in 5 commodities covering the four Asian countries. Solidaridad’s in-house developed QR code-based farm-to-cup traceability solution by the name of Soli-Trace was introduced to Indian tea consumers. And for the first time, at the initiative of Solidaridad, five major Asian palm oil consuming countries came together to form the Asian Palm Oil Alliance to work on sustainable palm oil consumption.
Integrated models
In 2022 we successfully lobbied for 69,933 ha of Guatemalan protected areas through RSPO remediation and compensation. In Nicaragua 3,348 producers diversified income through coffee carbon markets and an integrated cocoa-livestock model. In Honduras we implemented a traceability model for 200 coffee farmers and advocated to address fair value distribution through the National Coffee Policy.
Re-calibrating the resilience of smallholders
To catalyze sustainable production systems and reimagine value-addition opportunities, Solidaridad East and Central Africa worked closely with demand- and supply-side actors raising awareness and pushing for inclusive policies, good practices, fair value distribution, decent work, gender and social inclusion, and market access, among others.
Working towards systemic change
Europe is highly dependent on trade for its daily needs. Europe is supplied by billions of small farmers, miners and workers in agricultural, industrial and services sectors elsewhere. European companies and governments show little interest in defending the rights of stakeholders outside Europe. Solidaridad tries to make small farmers’ and workers’ voices from across the globe heard in Europe.
New grants, more impact
Given policy shifts on climate action and sustainability, Solidaridad was recognized for its cutting-edge solutions on climate, equity and decent work. Amazonia Connect, Solidaridad’s largest grant outside the European Union, was approved by USAID. Various tech companies engaged with us to address transparency, traceability and impact in the minerals space
Carbon credits for farmers
Carbon credits are becoming an important incentive to introduce smallholders to low-carbon agriculture. It increases farmers’ productivity and protects native forests. In 2022, we secured more than 6M EUR to scale access to the Acorn Platform, through which 80% of the carbon credits’ value returns to the farmer: an interesting proposition within voluntary markets.
Digital Solutions
The Southern Africa team managed to enhance dialogues on policy issues affecting the cotton, tea and Africa foods supply chains and initiate the implementation of a good practices standard in Mozambique. Kitovu, our digital technology hub, continues to design, test and deploy digital solutions across sub-Saharan Africa.
Farmer-friendly policies
We leveraged strategic partnerships and digital tools to increase supply chain transparency and market access for smallholders. We successfully lobbied and advocated for sustainable practices and policies that improve the livelihood of farmers and gold producers. Our advocacy work led to the passing of two land bills in Sierra Leone and the adoption of a new pricing arrangement in Ghana.
Executive Summary
2022 at a glance
Farmers first
In everything we do, we put farmers at the center. In the end, our interventions need to have a direct positive effect on their livelihoods, contributing to thriving communities. That’s why we are so proud that nearly a million small-scale farmers have seen a concrete increase in their income as a result of our work, in addition to being able to improve the working conditions for one million people working in agricultural-related supply chains and mining.
It is with great pride that we present our 2022 Annual Report covering a year with significant high notes. We increased our revenue by 22% to 68.9 million Euros, thanks to significant funding from donors like the Dutch Ministry of Foreign Affairs, the Dutch Postcode Lottery, and USAID. The trust that these partners place in Solidaridad is built upon the strong results we have achieved in past years.
Solidaridad’s more than 1,100 staff members have done an impressive job working alongside small-scale farmers, workers and miners to improve the future outlook in every region where we work. Throughout this annual report, you will find stories and statistics that bring the impact of our work to life.
Solidaridad is an organization that is creating long-lasting, positive effects that will ripple throughout communities for years to come. I am impressed by the organization’s commitment to transparency and accountability, as well as its dedication to impact-driven results.
On behalf of the International Supervisory Board, I would like to thank staff, partners and donors for their continued support. Your unwavering commitment to our joint mission of a more inclusive economy and thriving livelihoods, and the shared vision for creating prosperous communities continues to be inspirational and motivating. It’s a cause worth fighting for.
Best regards,
Shahamin S. Zaman
Chair International Supervisory Board
Over the course of 2022, Solidaridad worked with 1.4 million small-scale farmers in low- and middle-income countries. They received training in sustainable and profitable production practices and gained improved access to essential services and inputs. As a result, farmers are now applying these practices on 3.4 million hectares of farmland. Much of this work was made possible by the development of innovative digital solutions that allow more farmers to access the information they need to produce sustainably and profitably.
We intensified our efforts in improving working conditions for workers and miners which benefited no less than one million people. We also joined with companies, processors, and governments to develop and implement policies and practices that truly benefit small-scale farmers, workers and miners. Our work influenced 20 policies and helped improve mandatory sustainability frameworks. Though hard to measure, this important work has a ripple effect that leads to changes at a systemic level.
Our pride in these results is tempered by the significant challenges ahead of us: increased global fragmentation, shrinking space for constructive dialogue, polarization, poverty and climate change, to name a few. We see – and hear – from farmers about the increasing struggle to meet rigorous sustainability requirements, while at the same time not earning sufficient income to maintain these practices and support their families. And though the costs of living and farming continue to rise for farmers, the prices they earn for their produce often stay the same or decrease.
What’s required is a fundamental shift in how we steward our planet’s resources and honor those who work close to the land and depend on it for their livelihoods. We work towards these more fundamental changes with our innovation programmes. This includes amplifying the voice of small-scale farmers at the policy level, promoting fair, inclusive access to the data economy and carbon markets, or leveraging digital tools.
We recognize that our work is far from over, and that there is always much more to be done. We remain confident that with your continued support and partnership, we can make a real difference in the lives of many more individuals and communities in the years to come.
Thank you for joining us on this journey, and we look forward to what we will achieve together in the future.
Jeroen Douglas – Executive Director Solidaridad Network
The Solidaridad Network is registered as a foundation at the Chamber of Commerce in Utrecht, the Netherlands, under the number 51756811.
Solidaridad
Network Secretariat
‘t Goylaan 15
Utrecht 3525 AA
The Netherlands
Tel.: +31 (0)30 275 94 50
Email: info@solidaridadnetwork.org
Change that Matters Stories
Organization & Governance
HR development and learning
Focus on inclusivity and integrity
The Solidaridad Network is supported by a secretariat in the Netherlands. The secretariat works on synergy and alignment within the network on HR, Integrity, Learning, Communications, Finance, and PMEL. Next to our shared strategy, the policies and collaboration in these areas bind the network together and make it strong.
As of 31 December 2022, Solidaridad employed 1132 staff filling a total of 1048 full-time equivalent (FTE). This is an increase compared to 2021, when we employed 1089 staff with a total FTE of 1041. Our number of female staff was 384 out of 1132, a ratio of 33.9%. This is a slight improvement from 32.9% in 2021.
The overall population of management and implementation staff remains diverse across our seven Regional Expertise Centres. Our network structure includes a newly appointed female Chair of our International Supervisory Board and our Executive Board of Directors has a 50/50 ratio in gender and is dominated by representatives from the Global South.
More information about our staff, management and supervision can be found here.
Solidaridad strives for strong principles and values, demonstrable through our conduct in the work environment. We believe that as an organization with Integrity, we do the right thing even when nobody is watching. In order to prevent, monitor, and be held accountable for financial misconduct, misuse of power or interpersonal misconduct such as sexual harassment; organizational measures have been taken and we have a global Integrity, Inclusivity & Diversity framework and system. Each Regional Expertise Centre has a dedicated Global Integrity team with integrity advisors and a number of Persons of Trust covering primary languages of our implementation teams. In 2022, the teams continued to implement their regionally applicable action plans and training to continuously develop and improve our global integrity system.
Our Code of Conduct and Whistleblower Protocol guidance allows our skilled global teams to manage and improve the integrity system, to manage concerns raised and resolve formal reports received and to discuss ethical dilemmas. We use both internal systems and external specialists to support our formal report resolving, training materials and skills development.
In February of 2022, we launched our first Global Integrity, Inclusivity & Diversity Survey. A response rate of 59.5% was achieved. The Survey was released in accessible languages and sent to all staff. With the participation of an independent service provider to collate data and results, anonymity of respondents was assured. Survey results for 2022 have been incorporated into regional development action plans in response to local and regional topics identified via the survey. The action plans have been developed with participation of Managing Directors, Integrity Advisors and Persons of Trust. In addition, our second staff survey will be launched in May 2023, with internal stakeholders from all regions actively encouraged to participate.
The Solidaridad Code of Conduct and the Whistleblower Protocol form the heart of the integrity system to prevent, monitor, report and account for integrity. Our in-place procedures ensure a satisfactory response to a complaint and guide relevant investigations into reports. During 2022, these procedures have been tested internally and the procedures have proven robust. Solidaridad has zero tolerance for not acting. Solidaridad will vigorously pursue disciplinary or any other actions necessary against perpetrators of any inappropriate behaviour.
In the year 2022, four cases were reported: one in Asia, one in Southern Africa, one in West Africa and one in East Africa. All of the cases were handled in accordance with Solidaridad’s internal code of conduct and organizational policies. All of the cases were thoroughly investigated, discussed and resolved with appropriate measures. Trust and confidentiality are key. As a global network organization, contextualisation of the Code of Conduct enriches our culture upholding integrity.
More information about our risk and control measures can be found here.
Inclusivity is a core value of Solidaridad. We strive to provide equal access to opportunities and resources for all our colleagues to avoid exclusion or marginalization. Diversity in Solidaridad is equal inclusion based on gender, religion, belief, ethnicity, marital status or civil partnership, pregnancy and maternity, nationality, social position, economic position, disability, age, sex, sexual orientation, gender identity or reassignment. Solidardidad aspires to be an organization in which everyone works together side by side, in an atmosphere of equality and mutual respect, raising the floor to achieve a level playing field for everyone. We believe everyone has the potential to contribute and the right to be heard.
As per 31 December 2022, the number of female staff was 386 out of 1128, a ratio of 34.2%. This is an improvement from 32.9% in 2021. We continue to execute our specific strategy to get this more in balance and particularly to get more women in leadership positions. Our Regional Expertise Centres have 100% standardized HR policies for equal recruitment, job grading and promotion.
In February of 2022, we launched our first Global Integrity, Inclusivity & Diversity Survey promoting an inclusive working environment, with an atmosphere of equality and mutual respect. Global and regional results from the survey have been incorporated into each of our seven Regional Expertise Centres with Inclusivity Communities of Practices implementing regional feedback across implementation, support and management teams to further Solidaridad’s equal access and continues to develop as an organization with a diversity of staff.
Solidaridad made progress with learning in its thematic fields of expertise. A study was concluded to bring together different approaches to agroecological and regenerative agriculture. Field research on incentive systems for farmers provided essential insights for our programmes. Exploring public procurement approaches and strategies resulted in valuable input for future programming.
In 2022, we worked on eight global innovation programmes, focusing on building a solid business plan into the innovation cycle. Following evaluations of our programmes, we reviewed our learning structure and concluded that more focus, coordination between programmes and a better connection with field projects is essential.
In 2022, we celebrated the end of most of the travel restrictions with a face-to-face gathering to share and plan our learning efforts in materializing gender and social inclusion in our advocacy projects.
Our increased experience with digital tools throughout the network made us organize the first all-staff, directors and supervisors digital gathering, dubbed the Yellow Week. In this three-day online event, we shared experiences and discussed the particularities of working together in a multicultural environment. For our new colleagues, we organized a first global onboarding cycle to feel part of the global network, get inspired by our work, and find their way within the organization.
We amplified the authentic voices of small-scale farmers in low- and middle-income countries by increasingly focusing on short videos where farmers share their challenges and how they are taking steps toward farming that is more entrepreneurial and profitable while also respecting our planet. Also, on the website, we featured no less than 33 farmer stories, next to 83 news articles and 12 publications.
With this, we have been able to attract 343,000 new visitors to our websites. Among our visitors, an increasing percentage (56%) is based in the global south. Specifically from India, Kenya and Ghana we now have a significant amount of readers.
We have been able to grow our followers on Facebook, Twitter and LinkedIn, despite the declining trust in social media in general and the diminishing growth in those specific platforms. Some of our (former) directors are recognized as opinion leaders on LinkedIn with up to 31,000 followers, amongst them Executive Director Jeroen Douglas.
External endorsement is crucial for our reputation. We are happy that our efforts were rewarded with several awards in 2022. We won the prestigious TERI-IWA-UNDP Water Sustainability Award 2021-2022 for water conservation efforts in tanneries in India, the Global Good Award in Community Partnerships, the Bonsucro Inspire Award for the Muda Cana project, and in Peru we were selected for the Sustainable Development Goals award in the category “Planet” for our contribution to the conservation and sustainable management of natural resources for the startup EcoBan.
Our work featured in news publications of major prestigious news outlets like The Guardian, Food Print, NRC, Trouw, Barista Magazine, Food Dive, Candy Industry, Globo, Caracol TV, and many others. This led to a potential media reach of no less than 1.63 billion.
Our expertise was sought after at key events like the RSPO annual conference, the OECD, Chocoa, the NSO conference Space for Food, the Asian Tea Alliance meeting, and the EUAFRICA Business Forum, where we were invited as speakers, contributing in a positive way to our reputation and name recognition in the sector.
At the basis of these successes is the brand awareness and pride of our staff. The Yellow Week — an all-Solidaridad online learning and engagement event — managed to strengthen the sense of global connectedness. Trainings on how to use social media and how to capture video and photos in the field have supported our staff in becoming successful brand ambassadors.
Good evaluation provides evidence for learning through collecting, sharing, analyzing and interpreting information on progress while also providing reliable information to the donor on achievements and decisions made (accountability). Several evaluations took place in 2022.
An endline evaluation was conducted for the project in Zambia Towards sustainable livelihoods for women and girls through poultry production. The key findings were that enabling farmers to access capital inputs was a major success of the project especially for women who often do not have any access and control over money within the household. It is important to have a robust health management plan to ensure a successful poultry production cycle and reduce the risk of mortality. In addition to empowering women and youth economically, it is important to build their capacity in other areas/skills. Participation in the training was much easier for women who had full support from their husbands. Hence, it is important to ensure that men are fully aware of the project and the benefits, so that they can support their wives.
Another end evaluation was conducted for the project Dairy 2025 Catalyst For Investment And Climate Dairy Farming Project, Tanga Tanzania. The evaluation has found the project to have delivered affordable dairy production technologies and market linkages to producers. In addition, the evaluation has confirmed an increased number of dairy farming households with better access to affordable and quality dairy services. The commercialization of dairy hubs as business entities has also increased. The evaluation found that adopting improved dairy husbandry practices has not yet significantly impacted the beneficiaries’ dairy farmers regarding the total annual milk produced and the associated total annual income from milk sales. However, there is a potentially mean income impact, and yearly milk produced. This translates into long-term impact as dairy farmers continue to practice the technologies. Conclusively, the evaluation found that the project results will be sustained. The practice of the technologies disseminated will continue since the technologies are affordable and there is a growing demand for dairy products in the country. The project established business relationships to enable dairy farmers to leverage dairy financing. Giving more time, completing other institutional arrangements, and supporting land titling will make the dairy farm settlement plans for youth feasible.
Several baseline studies were also conducted across the organization to assess the initial situation of producers which allows us to fine tune our interventions and also to assess the impact of our work through before and after comparison studies. Studies were conducted with Ethiopian dairy farmers, for leather tanneries in Ethiopia, for shea farmers in Ghana and cocoa farmers in Nigeria.
At Solidaridad, we are convinced that good data and the good use of it is a key ingredient for project and organizational success. To that end, in 2022 we have focused on building internal capacity on data analysis and developed several tools, such as dashboards, which allow us to visualize data in a more attractive and simple manner. This way, we facilitate the use of data so that decisions and adaptations can be made on time. We have taken a two-pronged approach to guarantee the quality of data:
- we continued to further operationalize our data model (which standardizes KPIs, data points and data collection methodologies and have developed a data dictionary)
- while complementing it qualitative data and sense-making sessions to validate and triangulate findings.
More participatory approaches were deployed such as Focus Group discussions, Outcome Harvesting techniques and Most Significant Change which allow us to make sense out of data together with project beneficiaries and other stakeholders.
Finance
A record revenue
The overall revenue of Solidaridad in 2022 was 68.9 million Euros, against a total direct expenditure of 64 million (excluding money transfers from one region to another). Thanks to newly secured funding, the revenue was Euro 13.9 million higher than the secured budget of Euro 55 million.
N.B: all figures are pre-auditing.
Solidaridad Network’s revenue increased by Euro 12.4 million; from Euro 56.5 million in 2021 to Euro 68.9 in 2022. The revenue was Euro 13.9 million higher than the secured budget of Euro 55 million. After two difficult years, due to the global health crisis, Solidaridad was able to contract new grants and to execute our activities in the field according to our planning. These circumstances were reflected in our global revenue figures.
From the total revenue of Euro 68.9 million in 2022, Euro 37.8 million (55%) was generated by Solidaridad Europe (2021: 59%). The three regional offices on the African continent generated Euro 13 million (20%) (2021: 22%) and Solidaridad in Asia generated Euro 6.6 million (10%) (2021: 10%). Latin America generated 9.3 million (14%) (2021: 8%) and North America generated Euro 1.5 million (2%) (2021: 1%). Compared to previous years, the Americas started to contribute more heavily to the total global revenue. It is expected that this trend will continue, as Solidaridad has received a significant five-year grant from the US government.
Compared to 2021, Solidaridad received more income from the Dutch Postcode Lottery (+ Euro 8.2 million) and from companies (+ Euro 4.1 million) due to which the total income from governments, still the biggest contributor, decreased in relative terms from 69% in 2021 to 52% in 2022. The increase in income from companies came from the Latin American and African regions.
The total expenditure that was invested in the own regions amounted to Euro 64.1 million (2021: 54.1 million). The largest share (35.8%) was spent in Africa, 22.9% was spent in Asia, 18.6% in Europe and 21.2% in Latin America. Only 1.6% was spent in North America. Expenditure in all regions, particularly in Asia and Latin America, increased compared to the year 2021.
In 2022, all Solidaridad entities spent 87.5% of their costs directly on our objectives in programs. The costs of fundraising were 2.5% and 10% was spent on management & administration.
Activity costs increased significantly, compared to those in 2021, with Euro 5 million to Euro 22.6 million, making up 35% of Solidaridad’s costs. This contains travel and accommodation costs, as well as other costs such as training costs related to our programmes, benchmarks, and other materials that are needed for programme execution in the field. The increase is a reflection of our unique value proposition, where Solidaridad takes pride in having boots and brains on the ground. Only through this implementing modus we have become true leaders in understanding commmodity-specific supply chains, but also in developing tailored solutions for more sustainable supply chains.
The biggest expenditure went to staff costs (37%) (2021: 40%). Solidaridad’s projects are mostly carried out by its own staff rather than by external partners and consultants.
Each region produces its own annual accounts. All of our annual accounts are checked and signed by independent external auditors. More detailed financial information can be found in these official annual accounts – including the official auditor’s statements.
NB: for some regions, we are still awaiting the official auditors’ statement.
EUROPE
LATIN AMERICA
AFRICA
- Solidaridad Network West Africa
- Solidaridad East and Central Africa Expertise Center (SECAEC)
- Solidaridad Network Malawi
- Solidaridad Network Southern Africa NGO Mozambique Office
- Solidaridad Network Foundation Limited Zambia
- The Solidaridad Network South Africa Trust