Promoting responsible investment in Myanmar - Italian National Contact Point for the OECD Guidelines on Multinational Enterprises

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THE ITALIAN NCP AND THE IMPLEMENTATION

OF THEOECD GUIDELINES

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ITALIAN NATIONAL CONTACT POINT (NCP)

The Italian NCP is a simple and streamlined structure, organised within the Ministry of Economic Development (MED):

the General Director for the Industrial Policy and the Competitiveness

The Secretariat, composed by one manager and civil servants

the NCP Committee, composed by representatives of the interested Ministries and major national business associations, trade unions and stakeholders. Tasks: propose surveys and studied on relevant subject matters, analyse and discuss submitted specific instances and express opinions on the programme of the NCP

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ITALIAN NCP’S PRIORITIES

Outreach in non adhering Countries

Visibility of the NCP and awareness raising on the OECD Guidelines

Due diligence in the global supply chain and focus SMEs

Effective management of the specific instances

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OUTREACH:oECD- italian NCP joint project on myanmar

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A major objective for the OECD and for adhering countries: spread responsible business conduct globally in order to favour inclusive growth, avoid negative impacts of irresponsible conducts and promote a level playing field at international level

MYANMAR Project of the Italian NCP with the OECD

Target To promote responsible business conduct and the Guidelines in Myanmar, raising awareness on the OECD Guidelines in the institutions and economic operators and supporting Burmese and foreign investors – and specifically Italian investors - in Myanmar

Outreach: oECD-Italian NCP joint project on myanmar

Symposium: "Myanmar. The New Asian Frontier “

October 23, 2013 - IN COOPERATION WITH THE ITALIAN MINISTRY OF FOREIGN AFFAIRS

   strengthened political and economic cooperation between 

Italy and Myanmar

  analyze the positive steps and  the challenges that  Myanmar faces to reintegrate fully into the international arena and in the public perception 

 promote RBC and the Guidelines

  review of the development scenarios of Myanmar

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Events in Myanmar: 1 and 4 March 2014

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Visibility and awareness raising

In 2013…10 seminars (organised) 2 international meetings

(co-organsied)1 national exhibition co-

funded15 meeetings/webinar

(joined)

Strengthening of NCP’s communication instruments (website, paper booklets, events, meetings, workshops… )

Online toolkit based on

RBC and the Guidelines

with good practices for

Italian Industry Brand

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due diligence in the global supply chaIn: WHY?

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1 ) The e nte rp ris e s a re re q uire d to im p le m e nt a due d ilig e nc e s y s te m to p re ve nt / m itig a te the ir a dve rs e im p a c ts o n the m a tte rs c o ve re d by the Guid e line s

2 ) The e nte rp ris e s a re re q uire d to re s p e c t inte rna tio na l re c o g nis e d hum an rig hts whe re ve r the y o p e ra te

3 ) The due d ilig e nc e s ho uld inc lude the e nte rp ris e ’s re la tio ns hip s with bus ine s s p a rtne rs , e ntitie s in the s up p ly cha in a nd a ny o the r no n-Sta te o r Sta te e ntitie s d ire c tly linke d to its bus ine s s o p e ra tio ns , p ro duc ts o r s e rvic e s

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The global supply chain: conflict minerals

BACKGROUND OECD Due Diligence Guidance for responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas -Supplement on Gold - Downstream supply chain 

 Memorandum of Understanding among the Italian Ministry of Economic Development, the Responsible Jewellery Council and Confindustria-Federorafi. signed in May 2012, to collaborate in order to advance partners’ shared objectives of improving social, environmental and labour practices and good governance in the jewellery sector. 

TARGET  Raise awareness among Italian jewellery companies (gold sector)    Foster  the implementation and management of due diligence 

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What we did  Survey on the level of knowledge and implementation of RBC within the jewellery sector (es SMEs) and interviews to virtuous companies in order to codify the best practices

 Awareness raising seminars addressed to actors in the gold industry and in technical training schools 

 Building the capacity to conduct due diligence:  handbook aimed at SMEs  helping them to implement guidance and standards (simplify the message with examples, suggestions of practical actions  on how to assess the risk  etc.) 

Rhana Plaza collapse (24 April 2013)

OECD Secretary-General statement on events in Bangladesh(4 June 2013)

Statement by the National Contact Points (25 June 2013)

1st OECD Global Forum on RBC (26-26 June 2013)

NCP’s Action Plan on Bangladesh

The NCP, with the approval of its Advisory Committee (17 July 2013), adopts an Action Plan on Bangladesh.

target

embark on a path on due diligence in the supply chain of the textile industry along with the Italian companies directly and / or indirectly – by a business relationship - involved in the tragedy of the collapse of the Rhana Plaza plant in Bangladesh and extend the experience to the textile sector

operational lines:

•Collection of experiences of the companies involved and experiences more in general in the textile sector •Identification of the difficulties in the supply chain of the textile industry•Selection of examples of problem-solving practice for risk management•Recommendations for the textile industry by the NCP and dissemination of best practices

The Global supply chain: NCP’s Actiion plan on BangladesH

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NCP’S FOCUS AND TOOLS FOR SMEs

Guidance for SMEson due diligence in the supply chain

Set of RBC indicators for businesses and as a criterion of preference in public procurement and incentives to SMEs- INTEREGIONAL PROJECT -

Guidance for SMEson due diligence in the supply chainSTEEL SECTOR

Guidance for SMEsKey indicators GOLD SECTOR

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• The we ig ht o f the SME s e c to r in te rm s o f num be ro f firm s , e m p lo ym e nt a nd va lue -a dd e d is hig he r in Ita ly tha n in m o s t o the r O ECD c o untrie s

• SMEs p la y a n im p o rta nt ro le in g lo ba l s up p ly cha in

• Fo re ig n inve s tm e nt by SMEs e nte rp ris e s ha s inc re a s e d a nd the s e e nte rp ris e sno w p la y a s ig nific a nt ro le o n the inte rna tio na l s c e ne

• SMEs d o no t ha ve the s a m e re s o urc e s a nd c a p a c itie s a s la rg e c o m p a nie s

Eventual contacts with the parties

Specific instance to the NCP

Initial assessmentThe specific instance is inadmissible:the issue doesn’t merit

further examination

The proceeding will not be carried on

Publication of a statement

The specific instance is admissible:the issue merits further

examination

Examination of the case

Counterparties replies

Investigating activities

Conclusion of the examination of the case

Committee’s advice

The consensual solution is constantly seek

Parties’ agreement

Publication of a report

Absence of agreement

Publication of the NCP’s statement

In calculating the terms of this procedure the initial day is not computed. The public holidays are computed in the term. If the expiration day is a public holiday, the deadline is extended to the following working day. When a term is calculated by months and years, the ordinary calendar is followed.

Impartiality, predictability, equity, compatibility with the Guidelines

HOW WE MANAGE THE SPECIFIC INSTANCES: OVERALL VIEW

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Normally within 12 months from the beginning of the examination of the case, after due consultation of the parties on the publication the General Director of the NCP issues:

taking into account the advice expressed by the Committee

Parties’ agreement Absence of agreement

A report illustrating:The issues raised - The procedures the NCP initiated in assisting the parties - When the agreement

was reached - Information on the content of the agreement insofar as the parties involved agree thereto..

SPECIFIC INSTANCES: CONCLUSION

Agreed follow-upThe parties may also agree to seek the assistance of the NCP in following-up on the implementation of the agreement and the NCP may do so on terms agreed between the parties and the NCP.

• A statement that contains:The issues raised -- The eventual recommendations to the parties - The reasons for NCP’s decision

Appropriate follow-upThe NCP, when making recommendations to the parties, may hold as appropriate to follow-up with the parties on their response to these recommendations. In that case, the timeframe for doing so should be addressed in the statement.

Transparency is a general principle of conduct of the NCP in dealing with the public. However, there are circumstances in which confidentiality must be protected. The NCP shall take appropriate measures to protect sensitive information of companies. Similarly, other information, such as the identity of the individuals involved in the proceedings, remain confidential. During the proceedings, the nature of the works, including the facts and arguments of the parties is kept confidential. However, their outcomes are, as a rule, transparent.

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THANK YOU

National Contact Point

General Directorate for Industrial Policy and Competitiveness

Ministry of Economic Development

Via Molise 200187 Rome

Tel:(39-6) 47052561Fax:(39-6) 47052109

Email:[email protected]: http://pcnitalia.sviluppoeconomico.gov.it

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