Embed Size (px)
Citation preview
Building responsible agricultural supply chains
1
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
2
Why Responsible Business Conduct?
3
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
4
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
5
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
6
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
7
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
9
Addressing adverse impacts
10
11
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
