The OECD works with sustainability initiatives and their members, governments and civil society to promote more reliable public information on initiatives, increase understanding of their role in due diligence, and improve their credibility and alignment with OECD due diligence standards.
Sustainability initiatives for responsible business conduct
Industry schemes, certifications and multi-stakeholder initiatives are among the tools that companies can use as part of their due diligence. If well designed and governed, sustainability initiatives can help companies manage supply chain risks, pool knowledge, reduce cost, and scale effective due diligence. However, the landscape is growing in size and complexity - initiatives vary significantly in scope, focus and credibilty, which can create confusion for companies, consumers and governments.
About
Key messages
Businesses have ultimate responsibility for identifying and addressing adverse environmental, social and integrity impacts in their operations and supply chains. Sustainability initiatives can support them across the 6-step due diligence framework, by providing information on chain of custody or supply chain risks, carrying out supplier assessments or handling complaints. But they cannot replace businesses’ own responsibilities.
It is important that policymakers recognise and promote more reliable public information on how different sustainability initiatives, including audit schemes, certifications and other third party verification schemes, are designed and function, and avoid over-reliance on them as proof of responsible or sustainable conduct.
The OECD advises governments on the role and limitations of sustainability initiatives in due diligence policy design. Policy and technical papers provide recommendations to governments on specific issues, such as the role of sustainability initiatives in mandatory due diligence, cross-recognition between initiatives or the role of certifications in due diligence.
Understanding Sustainability Initiatives - A Typology Framework
This joint ITC-OECD report presents a comprehensive, flexible, and value-neutral typology framework that aims to promote a shared understanding of the complex landscape of sustainability initiatives.
Objectives of sustainability initiatives for responsible business conduct
The OECD differentiates between facilitation and verification initiatives for purposes explained on this illustration.
Capacity building, tools and resources
The OECD is developing tools and resources to help sustainability initiatives align their standards with OECD due diligence guidance, boost the capacity of companies to carry out due diligence, support governments and conduct research to address knowledge gaps.
A Due Diligence Checker for the garment & footwear sector guides sustainability initiatives and companies through the six-step due diligence framework. Similar self-assessment tools are being developed and piloted for sustainability initiatives and companies in the minerals and agriculture sectors, and for cross-sectoral use. E-learning courses help stakeholders deepen their knowledge on due diligence in the sector. Reports and publications offer practical insights on specific issues including the the role of certifications in due diligence.
OECD alignment assessments of sustainability initiatives
Since 2016, the OECD’s assessments of sustainability initiatives have helped to bring greater clarity and transparency to a complex and sprawling landscape of sustainability initiatives. Assessments using the OECD methodology have evaluated over 20 initiatives that cover more than 20,000 enterprises globally.
The OECD’s alignment assessments evaluate the alignment of an industry, government or multi-stakeholder initiative with the recommendations of OECD due diligence guidance and accompanying credibility criteria, using the OECD’s alignment assessment tools and methodology.
Alignment assessments constitute three core components:
- Standards assessment – an assessment of the initiative’s written policies and standards against criteria;
- Implementation assessment – an assessment of the initiative’s implementation of its written standards and the due diligence activities the initiative itself carries out;
- Credibility assessment -- an assessment of the initiative’s governance and internal management systems against governance, transparency, assurance and other credibility criteria.
Assessment findings are based on:
- a desktop review of written policies, standards, tools and methodology documents
- a desktop review of relevant public reports and/or other information published by stakeholders on the sustainability initiative
- shadow assessments (observation of audits, assessments or other activities carried out by the initiative)
- interviews with internal and external stakeholders and experts.
Alignment assessments focus on the adequacy of the initiative’s standards and monitoring, oversight and implementation activities. They do not draw conclusions about the adequacy of the due diligence carried out by individual companies that participate in the initiative under assessment.
Assessments carried out by and/or overseen by the OECD (‘OECD Alignment Assessments’) are distinguished from assessments carried out by third parties (such as governments, regulatory bodies, commodity exchanges, other industry schemes or independent assessors) who adopt and use the OECD’s assessment tools and methodology.
