AFi releases updated guidance for companies on respecting the rights of Indigenous Peoples and local communities

Worldwide, the production and expansion of agricultural and forestry commodities has had—and continues to have—severe negative impacts on Indigenous Peoples and local communities (IP and LC), including displacement from their lands, disruption of their cultures and ways of life, and harm to their livelihoods. In addition to violating human rights, these impacts can pose significant business risks for companies that produce, source, and finance commodities. 

However, by following good practice and engaging respectfully and constructively with IP and LC, companies can mitigate such risks while operating supply chains that respect human rights and benefit these communities. To support companies in respecting the rights ascribed to IP and LC under international law, the AFi has released an update to the Accountability Framework guidance on this topic. 

The revised Operational Guidance on Respecting the Rights of Indigenous Peoples and Local Communities helps companies along the supply chain embed respect for IP and LC rights throughout their businesses in ways that are aligned with international norms, regulatory requirements, and investor expectations. 

The updates provide more clarity and detail on the actions companies should take to help ensure respect for IP and LC rights in commodity production and sourcing. The revisions are rooted in good practice that has emerged since the guidance was first published in 2019. The document also incorporates feedback received from Accountability Framework users and stakeholders. 

The Accountability Framework is a roadmap for achieving supply chains that are free from human rights abuses, deforestation, and ecosystem conversion. Its guidance represents the consensus of the AFi Coalition, which comprises more than 20 human rights and environmental organisations.

Greater clarity on company responsibilities 

The revised document provides a clearer and more comprehensive overview of company responsibilities to respect the rights of IP and LC. For example, it includes revised definitions of Indigenous Peoples, local communities, and tribal peoples, and provides improved advice on applying these definitions. The guidance also offers expanded detail on the key rights of Indigenous Peoples and local communities to support more consistent and effective implementation. 

Additionally, the guidance outlines good practice for meaningful engagement with IP and LC through adherence to proper free, prior, and informed consent (FPIC) processes, and by supporting the self-determined development priorities of these peoples and communities. Further, the document recommends gender-sensitive approaches and due diligence processes that account for the distinct risks and needs of different individuals and subgroups. It also expands on how companies can help safeguard the rights and safety of environmental and human rights defenders in alignment with international norms, standards, and frameworks.

Due to its grounding in international human rights law, the guidance is applicable globally in all contexts, even where national laws might not fully protect IP and LC rights, or where laws are not effectively implemented or enforced. Thus, a company can use the guidance as a common approach across their entire business.

“The revised guidance lays out clear and actionable steps through which companies can translate their responsibility to respect the rights of IP and of LC into action,” said Oda Almås Smith, Coordinator, Responsible Finance Programme, Forest Peoples Programme. “The guidance sets out how companies can proactively prevent harm to IP and LC, and to respond appropriately to address rights violations in their operations or supply chains if such are identified.”

Guidance for companies based on their supply chain positions

The Operational Guidance has been tailored to support the unique needs of companies at different stages of the supply chain. This approach is anchored in the globally-recognised six-step human rights due diligence process outlined in the UN Guiding Principles on Business and Human Rights.

For commodity producers and processors, the guidance details company responsibilities prior to and during site establishment, as well as throughout site management. It is during site establishment that harms to IP and LC often occur, therefore particular diligence is needed at that phase. Company responsibilities include expectations related to land and resource rights, FPIC, benefit sharing, and other fair and equitable consideration when rights are impinged, as well as remedy when harms have occurred. The guidance also explains the set of studies and assessments that should be conducted prior to site establishment, and clarifies the importance of engaging IP and LC with rights over the area from the outset. This will help make certain that companies understand the project context and risks, and ensure that operations only proceed with the FPIC of the rightsholders. 

For commodity buyers, the document describes company responsibilities through supply chain management. This includes assessment of supply chain risks, internal capacity building, supplier engagement, mechanisms to respond to adverse impacts to IP and LC rights, and collaborative action at the sourcing area to address root causes of rights violations. 

“The guidance provides practical steps for companies to engage with their suppliers—as well as to collaborate with other stakeholders at global, national, and local levels—to implement initiatives that address the root causes of abuses to IP and LC, and to foster long-term improvements for communities at scale,” said Justin Dupré-Harbord, Deputy Director, Responsible Sourcing and Indigenous Peoples and Local Communities Rights, Proforest.

The updated guidance also offers external resources to support companies with implementing their commitments and responsibilities to respect the rights of IP and LC. Download the revised Operational Guidance to get started with the Accountability Framework.

Download the guidance