Presentation on Building responsible agricultural supply chains

Building responsible agricultural supply chains

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What is Responsible Business Conduct?

• Enterprises should :

– Avoid and address their adverse impacts

– Make a positive contribution to economic, environmental and social progress to achieve sustainable development

• This applies to all enterprises :

– Private, state-owned, and mixed

– Multinational and domestic

– Large and small

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Why Responsible Business Conduct?

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Obtain and retain the social license to operate

Reduce risks

Protect existing value and create new value

Facilitate the participation in GVCs

First-mover advantages

Attract and retain talent

The FAO-OECD Guidance

To help enterprises observe the OECD Guidelines and other major standards of responsible business conduct

Developed through a multi-stakeholder advisory group comprised of governments, business, civil society and international organisations

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June 2015Joint meeting

with extractives

October 20131st meeting

June 2014

2nd meeting

March 20153rd meeting

Jan.- Feb. 2015

Publicconsultation

Oct.-Dec. 2015Approval by

OECD and FAO

Next steps Implementation tools, peer learning platform, capacity building

The FAO-OECD Guidance

Two main sections:

1. What - A model enterprise policy which outlines the content of existing standards for responsible agricultural supply chains

2. How - A five-step framework for risk-based due diligence which describes the steps enterprises should follow to identify, assess, mitigate and prevent the actual and potential adverse impacts of their activities

Two annexes:

1. A description of the risks and measures for risk mitigation, drawing from existing standards

2. A guidance for engaging with indigenous peoples

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Health

Sustainable use of natural resources

Technology and innovation

Tenure rights over and access to

natural resources

Animal welfare

Labour rights

Food security

POTENTIAL RISKS

Human rights

Governance

1. What: Model Enterprise Policy

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Major standards considered

• OECD Guidelines for Multinational Enterprises

• Principles for Responsible Investment in Agriculture and Food Systems of the Committee on World Food Security (CFS-RAI)

• FAO Voluntary Guidelines on the Responsible Governance of Tenure of Land, Fisheries and Forests in the Context of National Food Security (VGGT)

• Principles for Responsible Agricultural Investment that respect rights, livelihoods and resources (PRAI)

• UN Guiding Principles on Business and Human Rights

• IFC Performance Standards

• ILO Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy

• Convention on Biological Diversity

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On-farm enterprises

Agricultural production and near-farm basic processing

Downstream enterprises

Aggregation, processing, distribution and marketing of agri-food products

Financial enterprises

Corporate and institutional investors less directly involved than enterprises above but that provide them with capital

Cross-cutting enterprises

Tenure rightsAnimal welfare

Animal welfare

Human rights

Food security & nutrition

Laborrights Health Governance

Environmental protection & sustainable useof resources

Technology & innovation

CROSS-CUTTINGRISKS

STAGES

SPECIFICRISKS

ENTER-PRISES

A supply chain approach

2. How: Framework for Due Diligence

Identify, assess, mitigate, prevent and address actual and potential adverse impacts

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Addressing adverse impacts

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Starting in 2016:

•Road-testing of the guidance by enterprises

•Case studies and due diligence tools tailored to specific enterprises or commodities

•Capacity building: peer-learning webinars and due diligence trainings

Cooperation with the UN Food and Agriculture Organization, commodity roundtables and industry initiatives

Implementation of the FAO-OECD Guidance

THANK YOU!

mneguidelines.oecd.org

For more information:

Coralie.David@oecd.org