7. Site establishment

These actions are critical to help fulfil commitments related to forests and other natural ecosystems (Core Principle 1) and respect for land rights (Core Principle 2.2). Companies seeking to develop or acquire interests in land – and those that support or finance such activities – are most directly responsible for applying these practices. Commodity buyers should ensure that these practices are applied by their suppliers.

7.1   Prior to any land or infrastructure development or any significant change in land management or land designation (eg, company acquisition of interests in land or natural resources, or the development of forest harvest plans), the company conducts or supports an integrated and participatory assessment and land-use planning process, as follows.

• The assessment follows a sequential analysis and decision process, beginning with initial due diligence, followed by impact assessment, and proceeding only if indicated by the outcomes of these initial steps.
• In the case of ongoing land conflicts, the company ceases efforts to acquire or gain control of land or resources related to these conflicts until they are addressed through a mutually-agreed negotiation process consistent with applicable law.
• Assessment and planning processes use recognised and technicallysound approaches, such as those described in the Operational Guidance on Respecting the Rights of Indigenous Peoples and Local Communities. Through these processes, the company identifies the conservation and community values of land, assesses land tenure, evaluate the potential impacts of the proposed activities, and design plans to minimise negative impacts and mitigate unavoidable impacts. These processes consider social and environmental aspects together and in relation to one another, are conducted in a transparent manner, and actively provide for the participation of potentially affected Indigenous Peoples and local communities as well as other stakeholders.
• Where activities may affect Indigenous Peoples’ and local communities´ rights, land, resources, territories, livelihoods, and food security, the free, prior, and informed consent (FPIC) of these groups is sought as part of the integrated land-use planning process. Activities do not proceed unless and until FPIC is secured, and any plans or site establishment activities are based on the negotiated outcomes of the FPIC and land-use planning processes.

7.2   In contexts where commitments to eliminate deforestation or conversion may conflict with the self-determined land-use plans or intentions of Indigenous Peoples or local communities with rights over such lands, companies follow the Operational Guidance on Respecting the Rights of Indigenous Peoples and Local Communities to determine if and how they can fulfil applicable commitments in the given context.

7.3   As a result of the land assessment and planning process – and prior to initiating any activities – effective mechanisms are put in place to foster the long-term protection and management of any areas of importance for conservation or Indigenous Peoples or local communities. These mechanisms are documented in writing, agreed upon by the involved parties, and specify the roles and obligations of the company, affected peoples and communities, and other relevant entities in the landscape.

7.4   A company that develops or acquires interests in land fulfils the elements of this Principle across the entire company (which is defined to include corporate groups). The buyer requires each supplier to fulfil the elements of this Principle across its entire company.

7.5   A company that acquires production or primary processing operations, or interests in lands or resources, assumes the environmental and social obligations associated with those assets. This includes obligations related to conservation, land management, human rights, remediation, and restoration.