Supply chain due diligence
Companies are increasingly expected to exercise due diligence in commodity production and sourcing as a means to minimize the risk of deforestation, conversion, and human rights abuses in their operations and supply chains. The Accountability Framework provides a reference for implementing environmental and human rights due diligence processes that can help companies meet these market and stakeholder expectations.
Topical Summary on Supply Chain Due Diligence
What is supply chain due diligence?
Due diligence is a systematic and ongoing risk management process that enables companies to proactively address their environmental and human rights impacts and conduct their business in a responsible manner.
Supply chain due diligence is promoted through voluntary frameworks such as the United Nations Guiding Principles and increasingly being incorporated into government regulations to address both the environmental and human rights impacts of commodity supply chains.
Why companies should use the Accountability Framework as a guide to effective due diligence
The Accountability Framework provides a detailed reference for implementing responsible supply chains in the agriculture and forestry sectors. There are several advantages to using the Framework to guide supply chain due diligence. These include:
Environment and human rights: The Framework addresses both environmental and human rights risks in an integrated manner.
A recognized and accepted approach: The Framework is a consensus-based guideline that has been widely applied in nearly all major forest-risk soft commodity sectors.
Interoperable with existing systems: Many monitoring tools, reporting systems, and standards/guidelines (e.g., certification programmes) that companies may use to implement supply chain due diligence are well-aligned with the Accountability Framework, providing an ‘umbrella’ approach that helps align action company-wide.
Universally applicable: The Framework is applicable globally and for all agricultural and forestry commodities, while also aligning with context-specific guidelines.
Attuned to the value chain: Recognizing the roles of different supply chain actors in effective due diligence, the Framework provides differentiated guidance per type of actor within an overall logic of end-to-end compliance and risk mitigation in multi-level supply chains.
Still have questions?
If you have specific questions about how the Framework can be applied in your context, or if you would like to speak to a member of the AFi team, please contact us below.
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