11 March 2016: The Organisation for Economic Co-operation and Development (OECD) and the Food and Agriculture Organization of the UN (FAO) have launched ‘Guidance for Responsible Agricultural Supply Chains,’ to promote responsible business conduct and due diligence along agricultural supply chains, with the aim of ensuring that agricultural operations contribute to sustainable development, poverty reduction, food security and gender equality.
The agencies caution that, while technologies to reduce pollution and increase agricultural production, create employment or raise labor standards can be introduced, they may also contribute to deforestation, soil degradation, water resource depletion or food insecurity.
OECD and FAO launched the Guidance at an event in Paris, France, on 11 March, which included a high-level panel discussion focused on the impacts of agricultural supply chains on human, labor and tenure rights.
The Guidance outlines standards that agricultural enterprises should observe to build responsible supply chains. It proposes a five-step framework for risk-based due diligence for enterprises to: establish strong management systems; identify, assess and prioritize risks in the supply chain; design and implement strategies to respond to risks; and account for and report on how they address the adverse impacts of their activities. The Guidance also aims to help enterprises observe existing standards for responsible business conduct, including the Voluntary Guidelines on the Responsible Governance of Tenure of Land, Fisheries and Forests in the Context of National Food Security, the OECD Guidelines for Multinational Enterprises, and the Principles for Responsible Investment in Agriculture and Food Systems.
On environmental protection and sustainable natural resource use, the Guidance recommends enterprises continuously strive to improve environmental performance, including by increasing resource use and energy efficiency; avoiding or reducing the generation of hazardous and non-hazardous waste and ensuring the safe disposal of waste; preventing, minimizing and remedying pollution and negative impacts on air, biodiversity, forests land, soil, and water; and reducing greenhouse gas (GHG) emissions. It also recommends agricultural practices that maintain and improve soil fertility and avoid soil erosion; support and conserve biodiversity, ecosystem services and genetic resources; and increase agriculture and food system resilience.
On land tenure rights and access, the Guidance addresses the importance of respecting the rights of private, communal, collective, indigenous and customary rights holders and recommends giving preference to project designs that avoid displacement of legitimate land holders. The Guidance suggests balancing environmental, social and financial costs and ensuring prompt, adequate and effective compensation of tenure rights if they are negatively affected.
On food security and nutrition, the Guidance recommends that enterprises pay attention to enhancing the accessibility, availability, stability and utilization of safe, nutritious and diverse foods.
OECD and FAO developed the Guidance through a two-year multi-stakeholder advisory process, including an online public consultation and pilot testing. [OECD Event Website] [OECD Publication Website] [FAO Publication Website] [Publication: Guidance for Responsible Agricultural Supply Chains]