OECD-FAO Pilot Project Peer learning session 1

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1 Food and Agriculture Organization of the United Nations OECD-FAO Pilot Project Peer learning session 1 Addressing gaps between policy commitments and implementation actions (Part 1) Wednesday, 26 September 2018

2 Agenda Introduction How can companies embed the 5-step due diligence framework into company operations? Companies experiences in operationalising the 5-step framework Practical examples of actions, processes and tools Defining the links between the SDGs, responsible supply chains and the OECD-FAO Guidance Wrap up

3 Introduction

4 Embedding the 5-step due diligence framework into company operations Katharine Teague, Head of Advocacy, AB Sugar

5 Land: Risk Context and mapping Illovo has not engaged in agricultural land acquisitions for decades - our land footprint has stayed consistent Risks associated with land in our countries of operation have become increasingly complex and challenging this is not an easy fix! Our journey started in 2013 when NGOs accused Illovo and ABF of land grabbing Land in the African context is a risk that is built into the fabric of the societies Malawi, Tanzania and Mozambique following risk assessments were the three countries where work needed to start immediately What are the business risks? - Reputational - Social license to operate as well as legal license to operate at a local level - Disruption to operation long term challenge - Establishment of small holders in our value chain growth and expansion 5

6 Policy and Roadmap How did we start to address the challenge? Engagement with experts and establish an expert working group to discuss policy and develop a Roadmap 2015 Illovo launched its Group Guidelines on Land and Land Rights which formally set out its zero tolerance to land grabs and land rights abuses, either in its direct operations or among its supplier - The Guidelines set out how Illovo aims to avoid the transfer of land rights away from local communities and national governments and instead prioritise alternative models of investment, such as the development of small grower farming operations rather than acquiring land for its own development - The Guidelines also contains principles on Free, Prior and Informed Consent (FPIC), assessment, enforcement, and compliance in the supply chain. The latter is primarily done through requiring all suppliers to sign up to Illovo s Code of Conduct and Business Ethics which has specific conditions to abide by Illovo s policy on land At the time of the launch, Illovo also released its Roadmap on Land Rights which set out a plan of action to implement the Group Guidelines, including setting up a Land Policy Roundtable committee and establishing Land Champions in each of its countries of operation. The roadmap is currently being reviewed and updated to reflect current priorities 6

7 Collaboration and engagement: Malawi DFID and Landesa From Commitment to Practice: Supporting the Operationalization of Private Sector Land Rights Commitments ( C2P Land Project ) The project focuses on developing and implementing effective and replicable responsible land-based investment practices within Illovo to address some of the trust and communications issues between Illovo and neighbouring communities in the three target countries Landesa, partner helping Illovo to: - Implement its Group Guidelines on Land and Land Rights and Road Map - Strengthen the capacity of key Illovo staff to identify and remedy land-related issues throughout the company s supply chain - Build the capacity of local civil society organizations (CSOs) - Assess Illovo s operations using tools adapted from the New Alliance s Analytical Framework for Land-Based Investments in African Agriculture (Analytical Framework) The project, which is still ongoing, is helping Illovo developed country-level plans on how they can better improve their understanding of land issues Illovo Malawi, as one of the first participant countries in this project, is already applying the Illovo Land Guidelines to legacy land disputes in the local area in order to find workable solutions 7

8 Collaboration and engagement: Mozambique USAID, Terra Firma, Indufor and Cloudburst USAID s Responsible Land-Based Investment pilot in 2017, targeted Illovo s Maragra plantation and the nearly 2,000 farmers in the area surrounding it to put Illovo s Group Guidelines into practice The project aimed to: - Raise awareness among farmers about their rights under Mozambique s land laws - Record the rights of smallholder farmers through an open, participatory process of community land mapping - Create a robust grievance mechanism for community and farmers association members Terra Firma, a local land and natural resources consulting firm, worked with growers in the Lhuvukani farmers cooperative near the plantation to agree and digitally map the property lines of growers land, in consultation with neighbours, government officials and the wider community. Once this transparent process was completed, growers have the opportunity to secure formal land tenure documentation As a result of the partnership, more than 1,800 growers have received legal land certificates and have a greater understanding of their rights - 60% of whom are women growers. The project has also helped growers and communities in making 275 DUAT applications (a form of land tenure right) which have been accepted by the Mozambique Government. 8

9 Questions? Katharine Teague, Head of Advocacy, AB Sugar

10 Embedding the 5-step due diligence framework into company operations Hugo Byrnes, Vice President, Product Integrity, Ahold Delhaize

11 Ahold Delhaize International company, Local brands 10Countries More than 6,600 stores 11

12 Product safety and sustainability for own brand products Food safety All our suppliers to be certified against a GFSI recognized standard Social Compliance All suppliers in high risk countries to be audited against amfori-bsci or an equivalent standard Critical commodities Tea Coffee Cocoa Palm oil Soy Wood fibre Seafood All 100% certified 12

13 Animal welfare Delhaize drops West Flanders abattoir over animal cruelty video Supermarket chain Delhaize has announced it will stop working with a slaughterhouse in West Flanders with immediate effect after an animal welfare charity published undercover video of cattle appearing to be mistreated. Not-for-profit organisation Animal Rights on Tuesday published extracts from what it says amounted to 59 hours of filming with a hidden camera in July at the Verbist abattoir in Izegem, West Flanders. 13

14 Questions? Hugo Byrnes, Vice President, Product Integrity, Ahold Delhaize

15 COMMENTS FROM THE AUDIENCE 15

16 Policy coherence and responsible business conduct for the SDGs Carina Lindberg, Policy Analyst, Policy Coherence for Sustainable Development, OECD Public Governance Directorate

17 Policy coherence for sustainable development (PCSD) The Guidance helping enterprises to observe existing standards of responsible business conduct (RBC) along agricultural supply chains to mitigate their adverse impacts and contribute to sustainable development.

18 TARGETS ON MOI T A R G E T S Due diligence contributions to the SDGs S U S T A I N A B L E D E V E L O P M E N T G O A L S ( S D G s ) GOAL ON MEANS OF IMPLEMENTATION (MOI) Finance Tech. Capacity Trade PCSD Partners. Data, etc Agricultural supply chains can impact on all dimensions of sustainable development: Environment dimension Social dimension Economic dimension a b c d ECONOMIC SOCIAL ENVIRONMENTAL

19 Partnerships and stakeholder engagement The PCSD Partnership (#SDGAction12066) working together to enhance policy coherence for sustainable development Learn more about our work: Join the PCSD Partnership: Contact us: Follow us on THANK YOU!

20 Questions? Carina Lindberg, Policy Analyst, Policy Coherence for Sustainable Development, OECD Public Governance Directorate

21 Wrap up

22 THANK YOU Andrew Britton Vittoria Franchini Shivani Kannabhiran Pascal Liu