Principles for Responsible Investment in Agriculture and Food Systems. CFS RAI OEWG April 29 th, 2014

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1 Principles for Responsible Investment in Agriculture and Food Systems CFS RAI OEWG April 29 th, 2014

2 Purpose and Expected Outcomes Purpose: In-depth presentation and preliminary discussion of the First Draft Setting the stage for the May negotiations Expected Outcomes: -Exchange of preliminary views and identification of major concerns -Agreement on structure and format for the negotiations

3 CFS-RAI OEWG Meeting Agenda 9:30 12:30 14:00 17:00 Purpose and Expected Outcome of OEWG meeting Ms. Christina Blank, OEWG Chair Summary of Global Consultation Ms. Chiara Cirulli, CFS Secretariat Presentation of the First Draft Ms. Elizabeth Beall, CFS Secretariat Question and Answer Session First Draft: General Comments Introduction Principles Roles, Responsibilities, and Application Setting the Stage for the Negotiation: Format and Structure Wrap-up and closing 17:00 18:00 The Practice of Responsible Investment Principles in Larger Scale Agricultural Investments, Inter-Agency Working Group - PRAI

4 Consultation process Objectives: - Receiving inputs and feedback on the zero draft - Foster ownership Format: - Multi-stakeholder - Designed to encourage interaction Methodology: - 4 Guiding questions - Detailed template - Chair s summary and compilations

5 Overview Africa By the numbers: OEWG Europe and Central Asia -55%Government -20% Civil Society E- consultation Governments, civil society, private sector, UN agencies, research and financial institutions North America -10% Private sector -15% UN Agencies, research, and financial institutions Total stakeholders: ~450 Near East Latin America and the Caribbean Asia and the Pacific

6 Africa: Highlights Participants: 16% Gov t 26% CSM Linkages Countries /regions Youth Research Onfarm/Offfarm 12% PSM 45% Others Household level In partnership with CAADP Chair s Summary and Templates First Draft

7 Europe and Central Asia: Highlights Participants: Land tenure New Structure VGGTs 55% Gov t 25% CSM 10% PSM Do No Harm 10% Others Chair s Summary and Templates First Draft

8 North America: Highlights Participants: 26% Gov t 40% CSM 18% PSM Power relations Water Nonfood crops FPIC In partnership with the U.S. and Canadian Governments 16% Others Chair s Summary and Templates First Draft

9 Latin America and the Caribbean: Highlights Participants: 45% Gov t 30% CSM 17% PSM Indigenous rights Cooperatives Rural/Urban Social protection Capacity In partnership with FAO Sub-regional office 8% Others Chair s Summary and Templates First Draft

10 Asia and the Pacific: Highlights Participants: 66% Gov t 27% CSM 5% PSM 2% Others Health Nutrition Non-food crops Medium investors Pastoralists In partnership with FAO Regional office Chair s Summary and Templates First Draft

11 Near East: Highlights Genetic diversity Translation Water Voluntary Legal frameworks Compiled from 3 rd Regional Multi-stakeholder Workshop on Food Security and Nutrition and consultation Chair s Summary and Templates First Draft

12 E-consultation: Highlights Participants: 6% Gov t 10% CSM 15% PSM Linkages Countries /regions Youth Household level Research Onfarm/Offfarm 44% Others Chair s Summary and Templates First Draft

13 Overview E- consultation OEWG Africa Governments, civil society, private sector, UN agencies, research and financial institutions Europe and Central Asia North America Extra-budgetary contributions from: EU France Sweden Switzerland Gates Foundation Near East Latin America and the Caribbean Asia and the Pacific

14 Drafting process CFS Secretariat Table of all comments by source and section of the document (4 guiding questions + templates) Grouping of comments by issue Identification of technical expertise required Areas of consensus Areas of concern Areas requiring language harmonization + Preliminary version of First Draft CFS Secretariat Technical Support Team

15 CFS RAI Principles FIRST DRAFT Structure Outline Principles Roles, Responsibilities, and Application Issues Addressed Section Review

16 Structure Zero Draft First Draft Background and rationale Objective, nature, and scope Part 1, 2, 3 Principle Rationale Objective Introduction Principles Roles, Responsibilities, and Application Application Roles and responsibilities

17 Principles First Draft 1. Contribute to Food Security and Nutrition Zero Draft 1. Food Security, Nutrition, and Sustainable Development 2. Economic and Social Issues 3. Environment, Natural Resources, Climate Change 4. Cultural Issues 5. Policy Coherence and Sector Development 6. Governance and Decision-Making 7. Grievance Mechanisms 8. Review Mechanisms and Accountability 2. Contribute to Sustainable and Inclusive Economic Development 3. Foster Gender Equality and Women s Empowerment 4. Engage and Empower Youth 5. Respect Tenure of Land, Forestry, and Fisheries and Water 6. Preserve Natural Resources and Contribute to Climate Change Mitigation and Adaptation 7. Respect Cultural Heritage and Traditional Knowledge 8. Promote Safe and Healthy Productive Systems 9. Incorporate Inclusive and Accessible Governance Structures, Processes and Grievance Mechanisms 10. Review Impacts and Ensure Accountability and Transparency

18 Roles and Responsibilities Zero Draft States First Draft Differentiated by: States Investors Civil society organizations, research institutions, development institutions, and multilateral and regional organizations Inter-governmental organizations Private Sector Enterprises Large Small and Medium Smallholders Financing Institutions, Donors, Foundations Research organizations, Universities, Extension Civil society organizations Communities Consumers Shared roles

19 First Draft - Introduction Comments Received How Addressed Background and Rationale: -More concise, shorter and more focused -Confusion of rationale under each principle versus initial rationale Rationales combined in beginning -Include definitions of responsible investment -Lacks justification of why we need principles Para 3 Para 1, 2 -Rights based approach -Importance of smallholders Para 3 Para 4 Objective, Nature, and Scope: -Explain what the Principles don t do Para 12 -stress voluntary nature Para 14

20 First Draft Principles Comments Received How Addressed -Make the Principle action oriented and meaningful standing alone -Clarify purpose between title, box text, bullets, rationale, objective, application -Use consistent style/structure for all Principles Reformulated -Principles should address the entire food system all actors, all stages -Simplify the Principles and focus on only the most RELEVANT issues -Make the Principles implementable Full document Reduced listing -Make the Principles measurable -All Parties must see themselves as able to USE the Principles -Adding Guiding Principles which apply to the whole document Para 19 Para 20

21 First Draft Roles, Responsibilities, and Application Comments Received How Addressed -Recognize the specific needs and responsibilities of each stakeholder category -Differentiate among private investors -Align the roles and responsibilities with existing agreements (VGGTs, Ruggie Principles) -Emphasize that food security and nutrition are the primary responsibility of States -Role of the State regarding smallholders should be more clear Para 41 Further differentiated roles in line with Users Para 35 Agreed language, Para 21 -Role of the State in providing an enabling environment for investors Para 38, 40 -Role of the State in regulating and monitoring investments Para 45 -Clarify the role of smallholders as investors, not just as recipients Para 51 -Specify that CSOs have a key role to play in fostering inclusive business models Para 55 -Ensure that all stakeholders throughout the food system are addressed Para 52, 56, 57

22 First Draft - Language Comments Received How Addressed Define key terms (e.g. responsible investment) Language should not be prescriptive Ensure consistency with agreed documents Use terms consistently throughout the document Translation issues Paras 1, 3, 4, 20 Paras 10, 14, 23, 28, 35, 36, 37, 41, 45 Ex. Smallholder Translation Unit Language Harmonization Group Reviewed regional consultation comments Provided technical recommendations based on internationally agreed language and/or precedent Reviewed consistency of use of terms

23 Issues Addressed Key role of Smallholders Gender Youth Nutrition Decent Work and ILO Water Food Prices and Food Sovereignty Animal Health and Welfare Food Safety Food loss and waste Agro-ecology Para 4, 15, 19, Principles, Para 41, 51 Principle 3 Principle 4 Para 20, Principle 1i, iv; Principle 8i, iv. Principle 2i, ii, iii Principle 5, Principle 6i, ii, iv Role of the state, Para 36 Principle 8ii, iii Principle 8i, iv Principle 1i; Principle 6iii Principle 6v First Draft

24 Issue Addressing Comments Towards Consensus Specific feedback on the Zero Draft Stakeholder Group How Addressed Key role of smallholders Smallholders should be central in the document CSM Medium and large investors Smallholders should be specifically referenced more in the document All sizes of investors have a role which should be clear in the document OEWG Rome PSM Paras 4, 15, Don t neglect medium and large farmers Latin America + Caribbean

25 Addressing Comments Towards Consensus Issue Specific feedback on the Zero Draft Stakeholder Group How Addressed Food Food production and the right to food should be prioritized CSM Acknowledge non-food production competition with food production CSM Non-Food ToRs call for scope to address all types of agriculture North America Paras 1, 3,4, 5, 13, 15, 20, 23, 24, 36 Non-food production contributes to increasing incomes and access to food Asia + Pacific

26 Addressing Comments Towards Consensus Issue Specific feedback on the Zero Draft Stakeholder Group How Addressed Do No Harm Clearly state what shouldn t be done EUR + Central Asia List possible negative impacts OEWG Promote Investment Principles should encourage MORE investment Asia + Pacific Paras 1, 2, 3,5, 13, 23, 37, 38 Tone of the document should be positive Africa

27 Issue Indigenous traditions and methods Innovation and diversity Addressing Comments Towards Consensus Specific feedback on the Zero Draft Cultural practices could be in conflict with human rights Rights of indigenous people need more recognition Need to acknowledge innovation and diversity with traditional knowledge Stakeholder Group EUR + Central Asia Latin America + Caribbean PSM How Addressed Paras 3, 5, 28, 29, 30, 32, 54, 57 Acknowledge consumer right to diverse and healthy food Asia + Pacific

28 FPIC Issue Addressing Comments Towards Consensus Specific feedback on the Zero Draft FPIC should be extended beyond just indigenous people C in FPIC should be consultation not consent Stakeholder Group Asia+Pacific North America How Addressed Para 32ii, iii Social Protection Safety nets for the most vulnerable play a key role in access to food Align social protection programs with agriculture and food security objectives CSM OEWG Para 25iv, 36, 40

29 Addressing Comments Towards Consensus Issue Specific feedback on the Zero Draft Stakeholder Group Capacity Building Need for greater resources dedicated to capacity building PSM How Addressed Data Education and capacity building for farmers is a prerequisite for achieving other agricultural objectives Need a baseline to determine impact of investment and impact of RAI Principles Latin America + Caribbean Africa Paras 2, 6, 14, 23, 33, 45, 54, 55, 59 Lack of comparable data EUR+ Central Asia Need for disaggregated data OEWG

30 Addressing Comments Towards Consensus Issue Specific feedback on the Zero Draft Stakeholder Group Foreign Investment Role of the state in policing their companies abroad EUR + Central Asia How Addressed States should maintain adequate domestic policy space to ensure human rights CSM Trade Agreements Principles should not be used as a protectionist measure Asia + Pacific Paras 35, 36, 37, 38 Principles should be incorporated in trade agreements CSM

31 Issue Monitoring Addressing Comments Towards Consensus Specific feedback on the Zero Draft Principles should include monitoring mechanisms and be enforceable Need indicators to assess impacts Stakeholder Group CSM Latin America + Caribbean How Addressed Voluntary nature Need clarity on to whom stakeholders are accountable Principles should focus on encouraging investment OEWG PSM Paras 2, 6, 14, 23, 33, 45, 54, 55, 59 Principles should not increase the regulatory burden Asia + Pacific

32 First Draft - Use Para 19 Principle One is complemented by nine supporting Principles, which are all integral to achieving food security and nutrition. The Principles are the essential actions for responsible investment in agriculture and food systems and the text below each Principle provides the means of accomplishing the action. In some cases, all of the means may be required to achieve the Principle, while in others they may not. The means to achieve the Principles should be determined by each user within their specific context. Intended Users States; Intergovernmental organizations; Private sector enterprises; Financing institutions, donors, foundations, funds; Research organizations, universities, and extension organizations; Civil society organizations; Communities; Consumers.

33 First Draft - Use Conceptual Framework All principles address food security and nutrition The principles build upon existing legal agreements and are underpinned by the concepts addressed in those agreements Language used throughout the First Draft Only the core related rights based agreed documents are included NO repeating or listing of the agreements in the rest of the document Overarching values embedded throughout follows a rights based approach

34 Negotiation, May 19 th 23 rd (24 th ) Provisional timetable Monday Tuesday Wednesday Thursday Friday Saturday (tbc) (tbc) (tbc) Regular sessions Location: Green room Possible Night or Saturday sessions No sessions Interpretation in all UN-languages will be provided for the Plenary sessions

35 Negotiation, May 19 th 23 rd (24 th ) Overall procedures Start with page 1 of the Introduction Proceed paragraph-by-paragraph until the entire document has been reviewed and negotiated Bracketing rules of the UN will apply Text discussed and agreed to by plenary will be marked with asterisks Text in asterisks will not be reopened by the Chair

36 Negotiation, May 19 th 23 rd (24 th ) Overall Procedures Punctuality No opening statements Short and consice interventions are encouraged, preferably with a concrete text proposal CFS Rules and Procedures for all meetings apply

37 Negotiation, May 19 th 23 rd (24 th ) Format of each Section Introduction by Secretariat Short unrecorded discussion among all participants to articulate concerns and ask questions Changes, amendments, or deletions can be suggested and will be recorded by scribes o o Uncontested changes will be accepted Differing or multiple suggestions on the same paragraph will be negotiated to reach consensus Where no agreement, Chair will forward to Friends of the Chair to work in parallel as plenary continues Friends of the Chair will send back to plenary for final agreement

38 Negotiation, May 19 th 23 rd (24 th ) Friends of the Chair Modalities Any Member or Participant can serve as Friends of the Chair Chair will aim to ensure representative participation of all concerned regions/groups Will serve in ad hoc/as needed basis called by the Chair Language Harmonization specific group will: o Ensure agreed language is consistent throughout document o Assist with reaching agreement on terms/language

39 Preparations April 30 th May 16th OEWG Chair available to meet Members and Participants Regional Groups, PSM, CSM should: consult with their constituencies to prepare for May identify representatives for Friends of the Chair

40 Thank you! Don t hesitate to contact us with questions or comments CFS Secretariat

41 Revisit ToRs CFS RAI Principles Requirements: Provide practical guidance to all relevant stakeholders Voluntary and non-binding Incorporate existing frameworks and guidance Address all types and sizes of agricultural investment at all stages of the value chain Acknowledge the special interests of smallholders Consider relevant obligations for each stakeholder Consider the broad diversity of agricultural value chains and food systems

42 Issue Investment models Addressing Comments Towards Consensus Specific feedback on the Zero Draft Address benefit sharing and fair contracts Stakeholder Group Africa How Addressed Encourage public-private partnerships Asia + Pacific Smallholder sensitive investments Address power relations, buyer power Term is condescending and does not empower smallholders, but assumes that a large actor must be involved North America IFAD Paras 4, 25iii, 25v, 40, 42, 52, 55 Document is not drafted from the perspective of smallholders CSM

43 Other Issues Comments Received How Addressed, First Draft Cooperatives Role of the state 2.6 and role of CSOs 2.21 Social welfare and social safety nets Role of the state 2.2 Data and statistics management Shared role Procurement Role of state, 2.8 Intensification Principle 6v

44 Other Issues Comments Received How Addressed, Version 3 Draft Zero draft is silent on nutrition Food Prices Role of State, 2.2 Food Sovereignty Role of the State, 2.2 Added diversity to Principle 1i; added description to definition; Principle 7iv; Added principle on safety and health Food loss and waste Principle 1i; Principle 6iii; Investment treaties and trade agreements Role of the state 2.9 Middlemen Roles, 2.18

45 New Principles Comments Received on Zero Draft Principles should be action oriented How Addressed in First Draft Titles formed into actions Principles should be merged into a single sentence Rewrite principle 5 Reduce overlap between principles (e.g. Principles 6 and 7) Add specific principle on land tenure/land grabbing Pastoralism, Livestock, Animal Health and Welfare Reformulated principles into one sentence followed by bullet points illustrating how Deleted policy coherence from Principle 5 and moved it to role of the state Combined principles 6 and 7 Added specific principle on land and water tenure to also address fisheries and water rights Added Principle on Safety and Health and address natural resource and waste issues under other principles already. Pastoralists are included in the definition of smallholders para 4.

46 New Structure Comments Received on Zero Draft How Addressed in First Draft Preference for short, concise document Same length as Zero Draft Condense each principle by combining current box text, objective, and application List principles up front Text combined from previously half a page per principle to 4-5 bullet points Listed in table of contents Combine all roles and responsibilities in one section and put at end of document Differentiate further among roles and responsibilities of stakeholders Combine application in one section at end of document Roles and Responsibilities apply to all principles in one section Differentiated private investors and stakeholders listed as users Application follows roles and responsibilities and addresses the principles as a whole

47 Areas not addressed in First Draft Issue Inclusion of small-scale WORKERS in every instance where smallholders is used Listing of groups (women, men, vulnerable) Use of the term family farming Changing the C in FPIC to consultation Going into further detail on tenure Going into further detail on monitoring Why Not Addressed Doesn t make sense in all contexts. Addressed overall in Principle 2 Impossible to be exhaustive A family farmer could be large, medium, or small and will depend on country context. The use of family labour in farming, particularly small farms is referenced para 51. Not in line with already agreed language No reopening of VGGTs, only reference to document Each stakeholder should determine context for monitoring of a voluntary document