Presentation by the OECD on scaling up. Day 3 of the 6th ICGLR-OECD-UN GoE Forum on responsible mineral supply chains, 15 November 2013. Visit: http://mneguidelines.oecd.org/icglr-oecd-un-forum-kigali-2013.htm
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Forward-looking agenda ICGLR-OECD-UN GoE
Forum 15 November, 2013
Objectives of this session
• Provide context of how the OECD Due Diligence was constructed
• Understand why 3T and Gold are the focus • Explain governance process for the Forum - ultimate
decision making lies with the OECD bodies • Acknowledge work of the current implementation
programme through 2015 • Explore and brainstorm possible linkages with other
natural resources • Stock-taking to inform the OECD Council report in May
2014 • Reflect on future Forum meetings
OECD Due Diligence Guidance: History and context
Year Description Natural Resources 2002-2003 The UN Panel of Experts on the illegal exploitation of
natural resources of the DRC reports that natural resources finance conflict. Alleges that 85 OECD-based companies were acting inconsistent with the OECD Guidelines for Multinational Enterprises in their operations and trade in the DRC
3T, gold, timber, wildlife, fisheries, cocoa and coffee
2003-2005 The OECD Investment Committee and OECD National Contact Points interact with the UN Panel and the UN Security Council to address concerns
3T, gold, timber, wildlife, fisheries, cocoa and coffee
2005-2006 OECD develops the Risk Awareness Tool for Multinational Enterprises in Weak Governance Zones to enable responsible investment and trade in areas of fragility
3T, gold, timber, wildlife, fisheries, cocoa and coffee
2006 ICGLR adopt Protocol against the Illegal Exploitation of Natural Resources
Minerals, flora and fauna, fishery products and water
2007 G8 Heiligendamm Declaration endorses the OECD Guidelines and the OECD Risk Awareness Tool and supports their wider understanding in the mining sector
Mining sector
Presenter
Presentation Notes
the first actual time the OECD began looking at this dates back to 2002-3, when the UN Panel of Experts on the illicit exploitation of natural resources in the Great Lakes Region alleged (see their 2002 Final Report) that a number of OECD-based companies were acting inconsistent with the OECD Guidelines for Multinational Enterprises in their operations and trade in the DRC (3T and gold focus). This led to a number of OECD “specific instances” begin filed in Adherent countries. The OECD investment Committee then began interacting with that group, and the UN Security Council, and decided first to develop the Risk Awareness Tool. In the end, that tool didn’t provide enough specific detail, so in response to the 2008 UN GoE DRC report, the Executive Secretary of the ICGLR wrote to the OECD Secretary General and asked for more cooperation on due diligence guidance for minerals. This was reinforced by the G8, and the 2009 UN SC Resolution. The OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas was developed to help companies respect human rights, avoid contributing to conflict through their mineral sourcing practices, and to cultivate transparent mineral supply chains and sustainable corporate engagement in the mineral sector. The Guidance is the result of a multi-stakeholder process with in-depth engagement from OECD and African countries, industry, civil society, as well as the United Nations. Three consultations were held in Paris in December 2009 and April 2010 and a joint ICGLR-OECD consultation in Nairobi in September 2010 (see meeting links below). As a result, the Guidance is a practical approach to due diligence implementation with an emphasis on collaborative constructive solutions to complex challenges. This project was undertaken in response to calls from the international community: the 2009 L’Aquila G8 Summit encouraged the OECD to co-operate with the International Conference on the Great Lakes Region and “engage with key stakeholders to further develop practical guidance for business operating in countries with weak governance” the International Conference on the Great Lakes Region asked for co-operation and assistance from the OECD to curb the illegal exploitation of natural resources the 2007 G8 Heiligendamm Declaration on Growth and Responsibility in the World Economy endorses the OECD Guidelines for Multinational Enterprises and the OECD Risk Awareness Tool for Multinational Enterprises in Weak Governance Zones, supporting their wider understanding in the mining sector a UN Security Council Presidential Statement stressed the importance of the OECD Risk Awareness Tool for Multinational Enterprises in Weak Governance Zones for promoting responsible business conduct and avoiding the illegal exploitation of natural resources in countries in conflict This work contributes to G20 efforts on combatting financial crimes linked to the exploitation of natural resources. The project was managed by the OECD Investment Committee and the OECD Development Assistance Committee, in collaboration with non-OECD partners. See an overview of the project (PDF).
OECD Due Diligence Guidance: History and context
Year Description Natural Resources
2008 UNGoE on the DRC report on 3T and gold financing conflict 3T & Gold
2009 • ICGLR launch “Regional Initiative against the Illegal Exploitation of Natural Resources”. ICGLR seeks support from OECD to develop due diligence guidance for the mining sector
• 2009 L’Aquila G8 Summit encouraged the OECD to co-operate with the ICGLR and “engage with key stakeholders to further develop practical guidance for business operating in countries with weak governance”
• OECD approves project on developing practical due diligence guidance for mining in areas of conflict; 1st OECD consultation held determines focus should be on 3T and gold supply chains
• UN Security Council Resolution calls on UN GoE DRC to develop due diligence with support from other fora, covering “mineral products”, but later emphasis on 3T and gold
Mining sector, with gradual focus to 3T & Gold
Presenter
Presentation Notes
the first actual time the OECD began looking at this dates back to 2002-3, when the UN Panel of Experts on the illicit exploitation of natural resources in the Great Lakes Region alleged (see their 2002 Final Report) that a number of OECD-based companies were acting inconsistent with the OECD Guidelines for Multinational Enterprises in their operations and trade in the DRC (3T and gold focus). This led to a number of OECD “specific instances” begin filed in Adherent countries. The OECD investment Committee then began interacting with that group, and the UN Security Council, and decided first to develop the Risk Awareness Tool. In the end, that tool didn’t provide enough specific detail, so in response to the 2008 UN GoE DRC report, the Executive Secretary of the ICGLR wrote to the OECD Secretary General and asked for more cooperation on due diligence guidance for minerals. This was reinforced by the G8, and the 2009 UN SC Resolution. The OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas was developed to help companies respect human rights, avoid contributing to conflict through their mineral sourcing practices, and to cultivate transparent mineral supply chains and sustainable corporate engagement in the mineral sector. The Guidance is the result of a multi-stakeholder process with in-depth engagement from OECD and African countries, industry, civil society, as well as the United Nations. Three consultations were held in Paris in December 2009 and April 2010 and a joint ICGLR-OECD consultation in Nairobi in September 2010 (see meeting links below). As a result, the Guidance is a practical approach to due diligence implementation with an emphasis on collaborative constructive solutions to complex challenges. This project was undertaken in response to calls from the international community: the 2009 L’Aquila G8 Summit encouraged the OECD to co-operate with the International Conference on the Great Lakes Region and “engage with key stakeholders to further develop practical guidance for business operating in countries with weak governance” the International Conference on the Great Lakes Region asked for co-operation and assistance from the OECD to curb the illegal exploitation of natural resources the 2007 G8 Heiligendamm Declaration on Growth and Responsibility in the World Economy endorses the OECD Guidelines for Multinational Enterprises and the OECD Risk Awareness Tool for Multinational Enterprises in Weak Governance Zones, supporting their wider understanding in the mining sector a UN Security Council Presidential Statement stressed the importance of the OECD Risk Awareness Tool for Multinational Enterprises in Weak Governance Zones for promoting responsible business conduct and avoiding the illegal exploitation of natural resources in countries in conflict This work contributes to G20 efforts on combatting financial crimes linked to the exploitation of natural resources. The project was managed by the OECD Investment Committee and the OECD Development Assistance Committee, in collaboration with non-OECD partners. See an overview of the project (PDF).
OECD Due Diligence Guidance: History and context
Year Description Natural Resources
2010 • OECD develops Due Diligence Guidance (3T and gold focus; 3T Supplement only) with UNGoE on the DRC
• ICGLR develops Regional Certification Mechanism (harmonised with OECD Guidance)
• UN Security Council Resolution on the DRC supports due diligence framework for 3T and gold
• US Dodd-Frank adopted
3T & Gold
2011 OECD Due Diligence Guidance included in OECD Council Recommendation; Supplement on Gold developed
3T & Gold
2012 OECD Council adopted the Supplement on Gold as part of a Revised Recommendation on the Due Diligence Guidance.
2014 OECD Multi-stakeholder Forum continues 3T & Gold implementation
3T & Gold
2015 OECD Multi-stakeholder Forum continues 3T & Gold + ?
Presenter
Presentation Notes
the first actual time the OECD began looking at this dates back to 2002-3, when the UN Panel of Experts on the illicit exploitation of natural resources in the Great Lakes Region alleged (see their 2002 Final Report) that a number of OECD-based companies were acting inconsistent with the OECD Guidelines for Multinational Enterprises in their operations and trade in the DRC (3T and gold focus). This led to a number of OECD “specific instances” begin filed in Adherent countries. The OECD investment Committee then began interacting with that group, and the UN Security Council, and decided first to develop the Risk Awareness Tool. In the end, that tool didn’t provide enough specific detail, so in response to the 2008 UN GoE DRC report, the Executive Secretary of the ICGLR wrote to the OECD Secretary General and asked for more cooperation on due diligence guidance for minerals. This was reinforced by the G8, and the 2009 UN SC Resolution. The OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas was developed to help companies respect human rights, avoid contributing to conflict through their mineral sourcing practices, and to cultivate transparent mineral supply chains and sustainable corporate engagement in the mineral sector. The Guidance is the result of a multi-stakeholder process with in-depth engagement from OECD and African countries, industry, civil society, as well as the United Nations. Three consultations were held in Paris in December 2009 and April 2010 and a joint ICGLR-OECD consultation in Nairobi in September 2010 (see meeting links below). As a result, the Guidance is a practical approach to due diligence implementation with an emphasis on collaborative constructive solutions to complex challenges. This project was undertaken in response to calls from the international community: the 2009 L’Aquila G8 Summit encouraged the OECD to co-operate with the International Conference on the Great Lakes Region and “engage with key stakeholders to further develop practical guidance for business operating in countries with weak governance” the International Conference on the Great Lakes Region asked for co-operation and assistance from the OECD to curb the illegal exploitation of natural resources the 2007 G8 Heiligendamm Declaration on Growth and Responsibility in the World Economy endorses the OECD Guidelines for Multinational Enterprises and the OECD Risk Awareness Tool for Multinational Enterprises in Weak Governance Zones, supporting their wider understanding in the mining sector a UN Security Council Presidential Statement stressed the importance of the OECD Risk Awareness Tool for Multinational Enterprises in Weak Governance Zones for promoting responsible business conduct and avoiding the illegal exploitation of natural resources in countries in conflict This work contributes to G20 efforts on combatting financial crimes linked to the exploitation of natural resources. The project was managed by the OECD Investment Committee and the OECD Development Assistance Committee, in collaboration with non-OECD partners. See an overview of the project (PDF).
OECD Implementation Programme Governance
Forum Gold and 3T Implementation Programme
Activities
Multi-Stakeholder Steering Group
(MSG)
Chair of MSG
OECD Bodies – responsible for the
Guidance and implementation programme
• Provide recommendations and suggestions on future activities of the Forum
• Support the implementation programme
Chair of the MSG and OECD Secretariat are primary
points of contact with the relevant OECD bodies
OECD Council provides high-level mandate to the OECD Investment Committee (IC) and
Development Assistance Committee (DAC) to monitor the implementation of the Due
Diligence Guidance
Presenter
Presentation Notes
the first actual time the OECD began looking at this dates back to 2002-3, when the UN Panel of Experts on the illicit exploitation of natural resources in the Great Lakes Region alleged (see their 2002 Final Report) that a number of OECD-based companies were acting inconsistent with the OECD Guidelines for Multinational Enterprises in their operations and trade in the DRC (3T and gold focus). This led to a number of OECD “specific instances” begin filed in Adherent countries. The OECD investment Committee then began interacting with that group, and the UN Security Council, and decided first to develop the Risk Awareness Tool. In the end, that tool didn’t provide enough specific detail, so in response to the 2008 UN GoE DRC report, the Executive Secretary of the ICGLR wrote to the OECD Secretary General and asked for more cooperation on due diligence guidance for minerals. This was reinforced by the G8, and the 2009 UN SC Resolution. The OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas was developed to help companies respect human rights, avoid contributing to conflict through their mineral sourcing practices, and to cultivate transparent mineral supply chains and sustainable corporate engagement in the mineral sector. The Guidance is the result of a multi-stakeholder process with in-depth engagement from OECD and African countries, industry, civil society, as well as the United Nations. Three consultations were held in Paris in December 2009 and April 2010 and a joint ICGLR-OECD consultation in Nairobi in September 2010 (see meeting links below). As a result, the Guidance is a practical approach to due diligence implementation with an emphasis on collaborative constructive solutions to complex challenges. This project was undertaken in response to calls from the international community: the 2009 L’Aquila G8 Summit encouraged the OECD to co-operate with the International Conference on the Great Lakes Region and “engage with key stakeholders to further develop practical guidance for business operating in countries with weak governance” the International Conference on the Great Lakes Region asked for co-operation and assistance from the OECD to curb the illegal exploitation of natural resources the 2007 G8 Heiligendamm Declaration on Growth and Responsibility in the World Economy endorses the OECD Guidelines for Multinational Enterprises and the OECD Risk Awareness Tool for Multinational Enterprises in Weak Governance Zones, supporting their wider understanding in the mining sector a UN Security Council Presidential Statement stressed the importance of the OECD Risk Awareness Tool for Multinational Enterprises in Weak Governance Zones for promoting responsible business conduct and avoiding the illegal exploitation of natural resources in countries in conflict This work contributes to G20 efforts on combatting financial crimes linked to the exploitation of natural resources. The project was managed by the OECD Investment Committee and the OECD Development Assistance Committee, in collaboration with non-OECD partners. See an overview of the project (PDF).
Current implementation programme (3T and Gold only)
• Implementation in the Great Lakes Region (Regional Certification Mechanism, OECD Due Diligence Guidance) – ongoing, to be scaled-up
• Outreach and implementation in other conflict-affected and high-risk areas (e.g. Côte d’Ivoire) - early stages
• Outreach and awareness raising in key markets for 3T and gold (e.g. China, India)– ongoing, more needed
• Bi-annual meetings of the ICGLR-OECD-UN GoE Forum on Responsible Mineral Supply Chains
Presenter
Presentation Notes
Mention that implementation programme update is available (on line and at back of room. Mention that we have funding through mid 2015 – acknowledge Canada, Sweden, Switzerland and EU
Forward-looking Forum agenda
• Continue with implementation in 3T and gold: – Strengthen and support initiatives – Understand and assess effectiveness
• Recognising that other natural resources may be linked to conflict: – Precious stones and other minerals – Timber, wildlife and fisheries – Oil & Gas – Water – Etc.
Principles for expanding scope of future work of the Forum
• Align with other initiatives and avoid duplication
• Seek relevant expertise
• Foster cross-learning from other initiatives and resources
• Expansion should not come at the cost of current implementation programme
• Any expansion in scope will require resources and time, and must be demand driven
• Any recommendations will need to be considered by the responsible OECD bodies
Future Forum meetings and priority work areas
• Thematic vs. supply chain focus – Option 1: One meeting per year open to all participants (Gold and 3T), and
second meeting focused on either Gold or 3T – Option 2: One day of each meeting looking at the issues for both Gold and
3T, and spending the other 2 days on either Gold or 3T issues
• Upstream vs. downstream – Option: One meeting per year open to all participants (Gold and 3T) full
supply chain, and second meeting focused on either upstream (Gold and 3T) or downstream (Gold and 3T) participants
• Other geographic focus – Option: One meeting in Paris, one meeting in the African Great Lakes
region and beyond (e.g. West Africa, Latin America, Asia)
Presenter
Presentation Notes
Problem-solving and information-sharing Bring stakeholders together to address challenges to implementation and derive common and coordinated solutions For example, we have been asked to develop clearer process for commercial risk, and for existing stocks, to determine reasonable level of due diligence. We have also been asked to look into challenges ofovercoming confidentiality and balancing with the recommendations on disclosure by companies of informaiton in their supply chain. This activity has been slow to pick up this summer but we hope to have made progress in time for our Nov meeting Collaboration Working with other initiatives to encourage consistency and harmonisation of due diligence expectations – e.g. ICGLR already mentioned, but also multple industry programmes… iTSCi, WGC, DMCC, LBMA, etc Peer-learning and other implementation activities: 3T Pilot completed in January 2013 Gold implementation programme launched this year – Gold training webinars Promotion and dissemination develop sector-specific or geographic-specific tools, for example we worked with the ICGLR to develop this simplified guide on how private sector particpants can carry out OECD Due Diligence and work to ecome certified under the RCM. This is available in English, French, Mandarin, Lingala and Swahili (although I have heard that the Swahili version could be improved…) This document can be updated, and we can work with the ICGLR to further refine it further, to enable broader dissemination. It is already available on our website. ALSO undertake workshops and training seminars (DUBAI, EUROPE AND INDIA ALREADY – CHINA IN 2014) - we at the OECD stand ready to work with all the ICGLR Member Governments to support or conduct due diligence training seminars, together with the ICGLR, to support the implementation of the Regional Certification Mechanism – because if the private sector is carrying-out due diligence, then it will be easier for them to get certified…. IF THERE IS ANY INTEREST FOR THE OECD TO come and assist in ICGLR training by raising awareness of the DDG, please let me know. We are ready and willing. ICGLR-OECD-UN GoE Forum - In-person meeting hosted by the OECD, ICGLR and UN in May and November each year. The next Forum is planned for 13-15 November, and stakeholders have all agreed that it would be good to have the Forum in the GLR. We are discussing with the ICGLR to finalise the exact location. Regardless of where it will be help in the GLR, we would like to rely on you all to ensure it’s a success and well-attended. If you have any ideas on invitees or topics for the Forum, please let me know.
May 2014 Forum – Save the Date
• Dates: May 26, 27 and 28, 2014
• Location: OECD Conference Centre, in Paris, France
• November 2014 Forum in DRC
Presenter
Presentation Notes
Problem-solving and information-sharing Bring stakeholders together to address challenges to implementation and derive common and coordinated solutions For example, we have been asked to develop clearer process for commercial risk, and for existing stocks, to determine reasonable level of due diligence. We have also been asked to look into challenges ofovercoming confidentiality and balancing with the recommendations on disclosure by companies of informaiton in their supply chain. This activity has been slow to pick up this summer but we hope to have made progress in time for our Nov meeting Collaboration Working with other initiatives to encourage consistency and harmonisation of due diligence expectations – e.g. ICGLR already mentioned, but also multple industry programmes… iTSCi, WGC, DMCC, LBMA, etc Peer-learning and other implementation activities: 3T Pilot completed in January 2013 Gold implementation programme launched this year – Gold training webinars Promotion and dissemination develop sector-specific or geographic-specific tools, for example we worked with the ICGLR to develop this simplified guide on how private sector particpants can carry out OECD Due Diligence and work to ecome certified under the RCM. This is available in English, French, Mandarin, Lingala and Swahili (although I have heard that the Swahili version could be improved…) This document can be updated, and we can work with the ICGLR to further refine it further, to enable broader dissemination. It is already available on our website. ALSO undertake workshops and training seminars (DUBAI, EUROPE AND INDIA ALREADY – CHINA IN 2014) - we at the OECD stand ready to work with all the ICGLR Member Governments to support or conduct due diligence training seminars, together with the ICGLR, to support the implementation of the Regional Certification Mechanism – because if the private sector is carrying-out due diligence, then it will be easier for them to get certified…. IF THERE IS ANY INTEREST FOR THE OECD TO come and assist in ICGLR training by raising awareness of the DDG, please let me know. We are ready and willing. ICGLR-OECD-UN GoE Forum - In-person meeting hosted by the OECD, ICGLR and UN in May and November each year. The next Forum is planned for 13-15 November, and stakeholders have all agreed that it would be good to have the Forum in the GLR. We are discussing with the ICGLR to finalise the exact location. Regardless of where it will be help in the GLR, we would like to rely on you all to ensure it’s a success and well-attended. If you have any ideas on invitees or topics for the Forum, please let me know.
