Promoting responsible agricultural supply chains

A FAO-OECD guidance1

FAO-OECD Guidance

Help enterprises observe existing standards of responsible business conduct along agricultural supply chains

Through a multi-stakeholder advisory group

Three main sections:

1. A five-step framework for risk-based due diligence

2. A model enterprise policy

3. Measures for risk mitigation

1. Five-Step Framework for Due Diligence

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

Five steps:

1. Adopt an enterprise policy

2. Identify and assess risks along the supply chain

3. Design and implement a strategy to respond to identified risks

4. Commission an audit of supply chain due diligence

5. Report on supply chain due diligence

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Supply Chain Approach

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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

2. Model Enterprise Policy

Major Existing Standards

• 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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3. Risk Mitigation Measures

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Example of land tenure rights:

•Identify land tenure rights holders

•Consult and negotiate with them

•Be transparent and disclose information

•Avoid the displacement of local communities

•Fairly compensate evicted local communities

•Promote business partnerships

Implementation Activities

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• Interactive website• Road-testing• Case studies from enterprises

• Tailored to specific enterprises and/or commodities

Capacity-building

• Due diligence trainings• Peer-learning webinars

Practical due diligence tools

Use of the FAO-OECD guidance

THANK YOU!

mneguidelines.oecd.org

For more information:

Coralie.David@oecd.org