Markets and Trade

The OECD-FAO Guidance on Responsible Agricultural Supply Chains is FAO’s central framework for addressing due diligence, agricultural supply chains and development. As a leading standard for responsible business conduct (RBC) in the agricultural sector, the OECD-FAO Guidance has seen wide uptake from governments and companies in managing adverse impacts related to commodity production and trade. It helps convey how enterprises can identify, prevent, mitigate and reduce environmental and social risks in cooperation with suppliers in agricultural supply chains, while driving better development outcomes from farm to consumer.

Adopted in 2016, the OECD-FAO Guidance was developed jointly by the OECD and FAO following a two-year process led by a multi-stakeholder advisory group that included governments, investors, agri-food companies, farmers’ organizations, civil society organizations and others. To allow for wider stakeholder engagement, the process also involved a public consultation. The Guidance has received government and multilateral support, including by G7 and G20 agriculture ministers.

The OECD-FAO Guidance presents a globally recognized framework for the application of RBC in global trade and agricultural supply chains. Its risk and development approach introduces how business and agricultural production may impact areas such as: food security and nutrition, human rights, labour and child rights, gender, climate change, natural resource depletion and deforestation, governance, animal welfare, land tenure rights, technology and innovation, and others.

The OECD-FAO Guidance incorporates other established standards for RBC, including the OECD Guidelines for Multinational Enterprises, the UN Guiding Principles on Business and Human Rights (UNGPs), and the Committee on World Food Security’s Principles for Responsible Investment in Agriculture and Food Systems (CFS-RAI).

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The OECD-FAO Guidance for Responsible Agricultural Supply Chains:


 

introduces a model enterprise policy, outlining the standards that enterprises should observe to build responsible agricultural supply chains;

 

provides a framework for risk-based due diligence describing the five practical steps that enterprises should follow to identify, assess, mitigate and report on work for addressing the adverse impacts of their activities;

 

outlines and describes the major risks faced by enterprises in the agricultural sector, highlighting measures for mitigating these risks; and

 

features examples on engaging with and addressing development vis-à-vis vulnerable groups, such as indigenous peoples.

OECD-FAO five-step framework for risk-based due diligence:

Latest  publications
02/12/2021

The enterprise policy note on Integrating a gender perspective into supply chain due diligence is based on the OECD-FAO Guidance for Responsible Agricultural Supply Chains and presents how companies can integrate a gender perspective into due diligence actions. It provides practical examples of how companies operating in agricultural supply chains can tailor their responsible sourcing and risk-based due diligence efforts to support better development outcomes for women and girls. The policy note also helps companies understand how their due diligence efforts can contribute to implementing Sustainable Development Goal 5: Achieve gender equality and empowering all women and girls when considering gender impacts and business relationships with suppliers in agricultural supply chains.

23/09/2021

The OECD-FAO Guidance for Responsible Agricultural Supply Chains (OECD-FAO Guidance) helps enterprises mitigate adverse impacts in the agricultural supply chain and promote inclusive growth. Implementing the OECD-FAO Guidance can help companies proactively address harms and achieve many of the Sustainable Development Goals (SDGs).

19/11/2020

The COVID-19 pandemic has generated serious threats to food security and nutrition and has greatly affected livelihoods and working conditions in agricultural value chains. This policy brief focuses on the role of responsible investment and responsible business conduct along agricultural value chains in the context of the COVID-19 pandemic. It provides policy recommendations for governments, investors, enterprises and civil society on how they can encourage responsible investment and responsible business conduct in agriculture in these challenging times.

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