Responsible sourcing
OECD-FAO Guidance for Responsible Agricultural Supply Chains
Definition
The OECD-FAO Guidance for Responsible Agricultural Supply Chains, published in 2016, helps enterprises observe standards of responsible business conduct along agricultural supply chains. It applies the OECD due diligence framework to sector-specific risks including land tenure, food security, labour rights, animal welfare and environmental impacts, and sets out a five-step due diligence process with a model enterprise policy.
References
publication year, scope and due diligence steps
sector risks and application context
Overview
What it means
Agricultural supply chains involve distinctive risks — land grabs, deforestation, seasonal and child labour — that generic guidance addresses poorly. The joint guidance translates responsible business conduct into farm-level and trader-level practice for companies sourcing, processing or financing agricultural commodities.
How it is used
Food and agribusiness companies, investors and certification schemes use the guidance to structure due diligence systems; governments reference it in national action plans and it informs commodity-specific initiatives such as those for palm oil and cocoa.
Why it matters
It is the reference due diligence framework for a sector employing over a quarter of the world's workers and driving much global deforestation, linking corporate sourcing decisions directly to rural livelihoods and ecosystems.