Agricultural Enterprises
Agricultural Enterprises undeniably play an essential role in the promotion of global food security and economic development.
While value chains within agricultural ecosystems are designed to enhance efficiency and economic growth, they can also pose risks and exert adverse effects on the climate and the environment. For instance, the intensive use of chemical fertilizers and pesticides along agricultural value chains can lead to soil degradation and water pollution, ultimately harming ecosystems and contributing to climate change.
Recognising these adverse impacts, the OECD and the FAO jointly developed the Guidance for Responsible Agricultural Supply Chains (OECD-FAO Guidance).
What’s in the OECD-FAO Guidance
The scope of the OECD-FAO Guidance is wide and covers areas such as environment protection, climate change, biodiversity and the sustainable use of natural resources. The recommendations of the OECD-FAO Guidance, inter alia, seek to address the need to mitigate pollution and adverse impact on air, land, soil, water and biodiversity. The recommendations also promote the reduction of greenhouse gas emissions, hazardous and non-hazardous waste, safe disposal of waste, sustainable use of natural resources, recycling, preservation of the biodiversity, reduction of food waste and the use of environmentally-friendly technologies.
Enhanced Due Diligence
Importantly, the OECD-FAO Guidance underscores the requirement of ‘enhanced due-diligence’ in sensitive matters, particularly involving projects dealing with protected areas (red flag locations), sourcing of commodities from adverse environmental considerations (red flag products) and even project partners having business links with red flag locations or red flag products. It also encourages businesses to conduct impact and risk assessments to address environment risks through Environment Impact Assessments (EIAs), Environment, Social, Human Rights Impact Assessments (ESHRIAs).
5 Step Framework
Thus, the OECD – FAO Guidance introduces a 5 step framework for risk based due diligence to support businesses in managing risks whilst contributing to development.
- Establish strong company management systems
- Identify, assess and prioritise risks in supply chains.
- Design and implement a strategy to respond to risks.
- Verify supply chain due diligence
- Report on supply chain due diligence.
Doing business responsibly today builds a better planet tomorrow. Should you or your business require further information on responsible business conduct matters, do not hesitate to contact the National Contact Point – Mauritius on secretariat@ncpmauritius.mu