Pilot Project on Responsible Agricultural Supply Chains in Southeast Asia
A unique opportunity for agricultural enterprises in Southeast Asia
The Organisation for Economic Co-operation and Development (OECD) is launching a pilot with businesses
in Southeast Asia to promote the understanding and implementation of the OECD-FAO Guidance for
Responsible Agricultural Supply Chains (OECD-FAO Guidance). The pilot is a valuable opportunity forcompanies in Myanmar, Philippines, Thailand and Viet Nam to understand how application of international
recommendations and standards in supply chain due diligence can help strengthen management practices,
promote responsible agricultural supply chains and support business contribution to achieving theSustainable Development Goals (SDGs).

About the OECD-FAO Guidance for Responsible Agricultural Supply Chains
In 2016, the OECD and FAO, with the support of governments, business, unions and civil society, developed
the OECD-FAO Guidance for Responsible Agricultural Supply Chains (OECD-FAO Guidance). The OECDFAO Guidance helps companies along the agricultural value chain observe international standards ofresponsible business conduct and implement risk-based due diligence through a framework that helps
companies identify and prioritise risks and mitigate adverse impacts. By implementing the recommendationsof the OECD-FAO Guidance, businesses can avoid causing and contributing to negative impacts,
demonstrate that they are conducting business responsibly, enhance responsible investments, and makepositive steps towards meeting the SDGs.
The OECD-FAO Guidance can be used by large as well as medium to small sized companies. The
recommendations are applicable to companies operating in all parts of the agri-business value chain. The
OECD-FAO Guidance builds on and incorporates the OECD Guidelines for Multinational Enterprises, the UN
Guiding Principles on Business and Human Rights, the Principles for Responsible Investment in Agriculture(CFS-RAI Principles), the ILO MNE Declaration, the Voluntary Guidelines on the Responsible Governanceof Tenure of Land, Fisheries and Forests (VGGT), the Convention on Biological Diversity and the Aarhus
Convention. As such, by implementing the OECD-FAO Guidance businesses can also be confident that they
are acting in alignment with other international standards in responsible business conduct.
The OECD-FAO Guidance has widespread government endorsement, including by the G7 Agriculture
Ministers and all OECD member countries.

The pilot project in Southeast Asia
The pilot project in Southeast Asia is open to all companies in the agricultural value chain operating in Myanmar,
Philippines, Thailand and Viet Nam. Companies from all segments of the value chain are encouraged to participate,although food-related agri-businesses may find the pilot particularly useful. In Myanmar and Viet Nam, seafood
companies are encouraged to participate. As such, the pilot is seeking participation from:

On-farm enterprises or cooperatives and fishers associationsInput suppliers
Traders, distributors and wholesalers
Food and beverage manufacturers
Retailers and supermarkets
Agri-business investors

The project will be managed by the OECD Secretariat and will draw from technical and sector experts at the OECD, theFAO and the ILO. Please note all pilot project activities will be conducted in English.

Benefits of participating for companiesManage risks: The OECD-FAO Guidance promotes a practical approach to supply chain due diligence that helps companies identify
the significant social, environmental and governance risks in their supply chains. Through appropriate management systems,engagement with stakeholders including affected communities, and supply chain wide collaboration, companies will have a clearer
understanding of the risks in their supply chains and how they can manage these risks effectively.

Build knowledge on international supply chain due diligence: The OECD-FAO Guidance is a leading international framework forsupply chain due diligence. The pilot is an opportunity for companies to learn first-hand about the recommendations and how tointegrate them into company operations and beyond Tier-1 suppliers. Participants will also have access to supply chain andresponsible business specialists from the OECD, the FAO and the ILO.

Promote achievement of the Sustainable Development Goals (SDGs): Companies that effectively implement the OECD-FAO Guidance
can be confident that they are addressing the priority concerns of government, international stakeholders and civil society a nd aretaking steps to meet many of the Sustainable Development Goals including Zero Hunger (Goal 2), Life on Land (Goal 15), Life BelowWater (Goal 14), Decent Work and Economic Growth (Goal 8), Sustainable Consumption and Production (Goal 12) and Partnershipsfor the Goals (Goal 17).

Enhance company brand: Participants will have the opportunity to help define good practices in addressing the recommendations of
the OECD-FAO Guidance. Findings from the pilot will feed into global policy-making and follow up at the OECD. Participants will also
have the chance to demonstrate their leadership. Pilot participants will be invited to attend regional events bringing together policymakers, businesses and other stakeholders.

Learn from peers: The pilot will provide a safe space for companies to discuss successes but also challenges with peer companies,
share experiences and learn from others. Companies will be able to share their approaches to addressing critical social andenvironmental impacts and incorporate feedback to strengthen their management systems, approaches and decisions. Participants
will also have the opportunity to connect with other implementation projects that the OECD is leading globally, and engage in multistakeholder fora to advance their responsible supply chain efforts.

Commercial confidentiality will be strictly protected for all participants and there will be no public ranking or assessment of companies.
Pilot participants will have the opportunity to be publicly recognised in communications from the OECD relating to the pilot should theywish.

Commitment from participantsParticipants will be expected to: Commit to engaging in the pilot for the full duration of the pilot (expected to last 15-18 months);
 Complete two surveys on supply chain due diligence actions: a baseline survey at the start of the pilot and a progress survey after 12months (see example); Participate and share information in conference calls or webinars which will focus on due diligence implementation cha llenges (e.g.
understanding risks, mapping supply chains beyond Tier 1, engaging with stakeholders, etc.);
 Take part in events in the region

Provisional timeframe
Q1/2 2019
Q2/3 2019
Q3 2019
Q4 2019
Q1 2020
Q2 2020
Q3 2020

Recruitment of companies to participate in pilot
Launch of the pilot
Launch of the baseline survey
Baseline report completed
Launch of peer learning sessions
Peer learning sessions
Event in region
Launch of the progress survey
Progress report completed
End of pilot

Contact:
Myanmar, Thailand and Viet Nam: Tihana BULE: Tihana.Bule@oecd.org
Philippines: Stephanie VENUTI: Stephanie.Venuti@oecd.org
Agricultural Supply Chain Due Diligence: Rena HINOSHITA: Rena.Hinoshita@oecd.org,Shivani KANNABHIRAN: Shivani.Kannabhiran@oecd.org

To find out more about the project:
http://mneguidelines.oecd.org/globalpartnerships/
http://mneguidelines.oecd.org/rbc-agriculture-supply-chains.htm

This project is funded by the EU