Third meeting of the Advisory Group on Responsible Agricultural Supply Chains A joint FAO-OECD initiative Summary Record OECD Conference Centre CC13, Paris, 16 March 2015, 10am-5pm The meeting was well attended with 30 participants representing OECD and non-OECD countries, business, civil society and international organisations. David Hegwood, USAID Senior Food Security Advisor, chaired the meeting. Vice-chairs Mella Frewen, FoodDrinkEurope, Kristen Genovese, OECD Watch, and Bernd Schanzenbaecher, EBG Capital, also participated in the meeting. The purpose of the meeting was for the advisory group to provide final comments on the FAOOECD guidance on responsible agricultural supply chains and to discuss possible implementation activities once the guidance is finalised. Participants agreed that the guidance should be user-friendly and practical. They made the following comments on the structure and content of the guidance. Structure of the guidance Annex II on the roles and responsibilities of various enterprises should be integrated within the five-step framework for risk-based due diligence. The model enterprise policy could be introduced before the five-step framework for risk-based due diligence, and the five major steps for due diligence highlighted in the introduction. The respective purposes of the model enterprise policy and Annex I (on risks and measures for risk mitigation) should be further clarified in the respective introductions to each of these sections. Annex III on lessons learnt and best practices could be published separately and possibly posted on a website. This would allow regularly updating and enriching it with examples of good practices. Selected examples could also be incorporated in boxes in the guidance itself. The list of standards that are not considered in the guidance should be moved from the conclusion to an annex. Content of the guidance The language on free, prior and informed consent (FPIC), compensation and resettlement should be revised to ensure that it does not specify lower requirements than those included in the VGGT and the CFS-RAI principles and that it aligns with that in the OECD due diligence guidance for meaningful stakeholder engagement in the extractives sector. The model enterprise policy should be reviewed to clarify the responsibilities of enterprises over their business partners. One option could be to remove references on the influence of enterprises over their business partners from the model enterprise policy and to add a box on this issue in the introduction, drawing from the OECD note on the financial sector and the concept of ‘adverse impacts directly linked to operations, products or services by a business relationship’ as used in the OECD Guidelines for Multinational Enterprises. The guidance should put more emphasis on gender, food security and nutrition, and livestock (in addition to crop) production. References to existing standards on corruption should be added and intellectual property rights mentioned, where relevant. The guidance should differentiate between risks in greenfield and brownfield investments, joint ventures, and mergers and acquisitions. It should also describe the various investment channels used by indirect enterprises further. The business case for carrying out due diligence should be strengthened. Next steps Participants agreed on the proposed implementation activities (see presentation below), while highlighting that cost considerations would need to be taken into account. Private sector representatives indicated that they were ready to support these activities through their own networks. They indicated that more practical guidance, including commodity-specific guidance, could be developed, although they agreed that developing a user-friendly website and using informal (low cost) dissemination channels should remain the priority. Analysis aiming to assess the costs of complying with standards in developing versus developed countries and to evaluate the costs-benefits of compliance would be relevant. Further work could also draw from the work undertaken by the Netherlands to develop indicators measuring the uptake of the guidance by enterprises. The OECD Secretariat highlighted that some activities, such as due diligence trainings, could be undertaken by stakeholders themselves. Participants suggested that representatives from developing countries, universities and academia, as well as transportation companies that play a major role in the supply chain, could participate in implementation activities. They also suggested that translating the guidance into other languages, e.g. into Spanish, would be useful. List of Participants 1. Chairman United States Mr. David HEGWOOD Senior Food Security Advisor Bureau of Food Security U.S. Agency for International Development (USAID) 2. Vice Chairs Business and Industry Advisory Committee (BIAC) Ms. Mella FREWEN Director General FoodDrinkEurope EBG Capital AG Mr. Bernd SCHANZENBAECHER Managing Partner EBG Capital AG OECD Watch Ms. Kristen GENOVESE Programme Manager SOMO (Centre for Research on Multinational Corporations) 3. Governements Chile Ms. Daniela ACUNA REYES Sustainability Specialist Bureau of Agricultural Studies and Policies – ODEPA Ministry of Agriculture Colombia Ms. Martha Lucia OROZCO ARAUJO Advisor Ministry of Trade, Industry and Tourism France Ms. Vanina FORGET Chargée de mission OCDE Bureau des politiques commerciales et extérieures communautaires Ministry of Agriculture, the Food Processing Industry and Forestry Switzerland Ms. Christina BLANK Deputy Permanent Representative Permanent Representation of Switzerland to FAO, IFAD, WFP, Rome Mr. Michael HARTMANN Collaborateur scientifique Office fédéral de l'agriculture Mr. Maurizio CERRATTI Conseiller d'ambassade Permanent Delegation of Switzerland to the OECD The Netherlands Ms. Elsbeth VISSER Policy Advisor Food Security Directorate-General for Agro European Agricultural Policy and Food Security Department Ministry of Economic Affairs Turkey Mr. Erdem DAVARCI General Directorate of State-Owned Enterprises Undersecretariat of Treasury United States Ms. Janet SHANNON Investment Affairs Officer Office of Investment Affairs U.S. Department of State 4. Business Aquila Capital Farms (through conference call) Ms. Michaela LAMERS Manager Product Marketing BNP Paribas Investment Partners Ms. Helena VIÑES FIESTAS Head of Sustainability Research Responsable de la recherche ISR/ESG Business and Industry Advisory Committee (BIAC) Mr. Jonathan GREENHILL Policy Manager Milltrust International Mr. Mark EBERT Chairman Milltrust International LLP Ripplewood Advisors Mr. Naren RAMACHANDRAN Saudi Agricultural and Livestock Investment Company (SALIC) Mr. Dawood S. MOHAMMED Vice President - Investment Sidley Austin LLP Ms. Colette VAN DER VEN Associate Africa-Asia Agricultural Enterprise Pro Bono Programme Yara (BIAC) Mr. Koen VAN KEER Industry Relations Expert 5. Non-governmental Organisations and Academics Columbia University (through conference call) Ms. Kaitlin Y. CORDES Legal Researcher and Head of Land and Agriculture Columbia Center on Sustainable Investment Columbia Law School - The Earth Institute Global Witness Ms. Megan McInnes Campaign Leader for Land World Animal Protection Netherlands Mr. Dirk-Jan VERDONK Head of Programmes 6. Intergovernmental Organisations Food and Agriculture Organization of the UN (FAO) Mr. Pascal LIU International Investment Team Leader Trade and Markets Division OECD Ms. Barbara BIJELIC Legal Expert, Sector Projects, RBC Unit Investment Division Ms. Coralie DAVID Policy Analyst, Investment in Agriculture Investment Division Mr. Tyler GILLARD Legal Advisor and Project Head, RBC Unit Investment Division Ms. Lesley O’SULLIVAN Assistant Investment Division Ms. Cristina TEBAR LESS Lead Manager, RBC Unit Investment Division Proposed Activities 1. Governance structure Transform the advisory group into a ‘steering committee’ responsible for overseeing implementation activities: - Additional members could include major agri-food companies, farmers’ organisations, civil society organisations - Balanced representation of enterprises, governments and civil society - Meetings twice a year + conference calls Create working groups responsible for carrying out specific activities under the supervision of the ‘steering committee’ 2. Promoting and using the guidance Expected endorsement of the guidance by FAO and OECD User-friendly website to share the guidance and best practices Road-testing by selected enterprises and/or industry associations Material providing case studies and concrete examples from enterprises Collaboration with selected commodity standards and industry initiatives to integrate the guidance into their tools and trainings One-on-one engagement with major industry players Participation in key industry conferences 3. Research and analysis Regular update of lessons learnt and best practices on responsible agricultural supply chains Due diligence guidance tailored to each type of enterprises to describe their respective responsibilities Commodity-specific due diligence guidance Close alignment with: - Other OECD sectoral projects on responsible business conduct - FAO activities related to responsible agricultural investment 4. Peer-learning, training and outreach Due diligence trainings, workshops and peer-learning webinars focusing on producers, SMEs, and institutional investors Country roundtables and pilot implementation programmes for specific commodities and/or enterprises Collaboration with producing and consuming countries, business, trade unions and civil society Outreach to specific geographies and to business and trade organisations Questions for discussion How to ensure that the advisory group represents all relevant stakeholders? What could be the role of farmer organisations and other civil society organisations? What could be the objectives, scope and composition of working groups? Could the guidance be road-tested by some enterprises? With which industry initiatives should we collaborate? On what commodity and/or type of enterprises should further analysis focus on? What should be the target audience of trainings or webinars?
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