This presentation by Coralie David explains why responsible agricultural supply chains are important and how to promote them. It forms part of the OECD's broader work on responsible business conduct as embodied in the OECD Guidelines for Multinational Enterprises. Read more about OECD work on responsible business conduct along agricultural supply chains at: http://mneguidelines.oecd.org/rbc-agriculture-supply-chains.htm.

1. Building responsible
agricultural supply chains
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2. 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
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3. Why Responsible Business Conduct?
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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

4. 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
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June 2015
Joint meeting
with extractives
October 2013
1st
meeting
June 2014
2nd
meeting
March 2015
3rd
meeting
Jan.- Feb. 2015
Public
consultation
Oct.-Dec. 2015
Approval by
OECD and FAO
Next steps
Implementation tools, peer learning platform,
capacity building

5. 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

6. 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
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7. 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

8. 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 rights
Animal welfare
Animal welfare
Human
rights
Food security
& nutrition
Labor
rights
Health Governance
Environmental
protection &
sustainable use
of resources
Technology
& innovation
CROSS-
CUTTING
RISKS
STAGES
SPECIFIC
RISKS
ENTER-
PRISES
A supply chain approach

9. 2. How: Framework for Due Diligence
 Identify, assess, mitigate, prevent and address actual and
potential adverse impacts
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10. Addressing adverse impacts
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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

12. THANK YOU!
mneguidelines.oecd.org
For more information:
Coralie.David@oecd.org