Responsible agriculture supply chains

Agricultural supply chains are a source of food security and livelihoods for people around the globe, including many of the most vulnerable workers and communities. At the same time agriculture and food systems account for a significant share of global environmental pressures – including roughly a third of global GHG emissions, 70% of freshwater use and up to 73% of tropical deforestation. The OECD is working to help enterprises build sustainable and resilient agricultural supply chains by mitigating social and environmental risks.

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Key messages

The OECD-FAO Guidance for Responsible Agricultural Supply Chains provides internationally agreed due diligence recommendations specifically to companies in the food and agriculture sector.

The guidance is relevant for all business and investors across the entire agricultural supply chain, from the farm to the consumer, across a wide range of food and non-food commodities. It provides business with step-by-step instructions for integrating due diligence into their operations and supply chains. The OECD-FAO Guidance was developed jointly with the United Nations Food and Agriculture Organization.

Agricultural Supply Chains and the Environment: What do the OECD Guidelines for MNEs on RBC expect from Business?

To guide agricultural businesses from commitment to action, the OECD and its partners have developed a series of tools and handbooks to address specific challenges facing agricultural supply chains, for example on deforestation and child labour in the cocoa sector, as well as emerging policy and regulations for sustainable agri-food supply chains.

Transformation towards more sustainable and inclusive global food systems can only be achieved if all stakeholders – policymakers, the private sector and civil society and monitoring groups – work together.

The OECD-FAO Advisory Group on Responsible Agricultural Supply Chains is an informal group of over 50 experts that facilitates multi-stakeholder cooperation and supports the uptake and implementation of the OECD-FAO due diligence approach in agriculture supply chains.

In another example of joint action, the OECD also supports the G7 Sustainable Supply Chains Initiative which brings together 22 international food and agriculture companies that have pledged to improve the environmental, social and nutritional impact of their operations and supply chains globally.

OECD Guidelines for Multinational Enterprises on Responsible Business Conduct

Themes covered in the Guidelines

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Context

The challenge for agri-food business

Agricultural supply chains ensure food security for a growing global population and provide livelihoods for millions of people. However, they also account for a substantial share of global environmental pressures. In addition, climate change and environmental degradation present a growing threat to global food security. Businesses operating in agricultural supply chains are likewise facing increasing pressure to address adverse environmental impacts from investors, governments and the public as the world seeks to transition to a green economy.

Environmental impacts and dependencies of agricultural supply chains

Agricultural supply chains ensure food security for a growing global population and provide livelihoods for millions of people. However, they also account for a substantial share of global environmental pressures. When all stages of the food supply chain are included, from the production of inputs such as fertilisers to the final consumer, food supply chains account for an estimated one-third of global man-made GHG emissions. More than two-thirds of these emissions are due to primary agriculture and land use change. At the same time, a third of all food produced is either lost or wasted. Indeed if food loss and waste was a country it would be the third biggest emitter of greenhouse gasses.

In addition, around 80% of all threatened terrestrial bird and mammal species are in danger because of agriculture-driven habitat loss, and most water use around the world is for agricultural production.

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