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RECOMMENDATIONINTERNATIONAL INVESTMENT AND MULTINATIONAL ENTERPRISES
INVESTMENT
Recommendation of the Council on the Due Diligence Guidance for Meaningful Stakeholder Engagement in the Extractive Sector
13 July 2016 - C(2016)100

THE COUNCIL,

HAVING REGARD to Article 5 b) of the Convention on the Organisation for Economic Co-operation and Development of 14 December 1960;

HAVING REGARD to the Declaration on International Investment and Multinational Enterprises [C(76)99(Final)], the Decision of the Council on the OECD Guidelines for Multinational Enterprises [C(2000)96/FINAL as amended by C/MIN(2011)11/FINAL] (hereafter the “Decision on the Guidelines”), the Convention on Combating Bribery of Foreign Public Officials in International Business Transactions, the Recommendation of the Council on Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas [C/MIN(2011)12/FINAL as amended by C(2012)93], the Recommendation of the Council on the Policy Framework for Investment [C(2015)56/REV1] and the Recommendation of the Council on the OECD-FAO Guidance for Responsible Agricultural Supply Chains [C(2016)83];

RECALLING that the common aim of governments recommending the observance of the Guidelines for Multinational Enterprises (hereafter the “Guidelines”) is to promote responsible business conduct;

RECALLING FURTHER that the Decision on the Guidelines provides that the Investment Committee shall, in co-operation with National Contact Points, pursue a proactive agenda in collaboration with stakeholders to promote the effective observance by enterprises of the principles and standards contained in the Guidelines with respect to particular products, regions, sectors or industries;

CONSIDERING the efforts of the international community and nations rich in oil, gas and mineral resources to promote responsible business conduct and meaningful stakeholder engagement in the extractive sector;

RECOGNISING that meaningful stakeholder engagement in the extractive sector is critical to sustainable development, promoting inclusive growth and respecting human rights;

RECOGNISING that governments, enterprises, civil society organisations and international organisations can draw on their respective competences and roles to promote meaningful stakeholder engagement in the extractive sector to benefit society at large;

NOTING that due diligence is an on-going, proactive and reactive process through which enterprises can identify and manage risks with regard to stakeholder engagement activities to ensure that they play a role in avoiding and addressing adverse impacts linked to extractive sector operations;

HAVING REGARD to the Due Diligence Guidance for Meaningful Stakeholder Engagement in the Extractive Sector [C(2016)100/ADD1] (hereafter “the Guidance”) that may be modified, as appropriate, by the Investment Committee;

NOTING that this Guidance proposes a due diligence framework for meaningful stakeholder engagement in the extractive sector and provides recommendations on applying that framework to identify and manage risks to stakeholders impacted by extractive sector operations and specifically to indigenous peoples, women, workers and artisanal and small-scale miners;

On the proposal of the Investment Committee:

I.   RECOMMENDS that Members and non-Members adhering to this Recommendation (hereafter the “Adherents”) and, where relevant, their National Contact Points to the OECD Guidelines for Multinational Enterprises (hereafter the “NCPs”), actively promote the use of the Guidance by enterprises operating in or from their territories with the aim of ensuring that they observe internationally agreed standards of responsible business conduct with respect to stakeholder engagement in the extractive sector in order to prevent adverse impacts, such as human rights infringements and environmental degradation and promote economic growth and sustainable development;

II.   RECOMMENDS, in particular, that Adherents take measures to actively support the adoption of the due diligence framework for meaningful stakeholder engagement set out in the Guidance;

III.   RECOMMENDS that Adherents and where relevant their NCPs, with the support of the OECD ensure the widest possible dissemination of the Guidance and its active use by enterprises conducting exploration, development, extraction, processing, transport, and/or storage of oil, gas and minerals as well as promote the use of the Guidance as a resource for stakeholders such as affected communities and civil society organisations, and regularly report to the Investment Committee on any dissemination and implementation activities;

IV.   INVITES Adherents and the Secretary-General to disseminate this Recommendation;

V.   INVITES non-Adherents to take due account of and adhere to the present Recommendation;

VI.   INSTRUCTS the Investment Committee to monitor the implementation of the Recommendation and to report to Council no later than five years following its adoption and as appropriate thereafter.

More information    
The OECD Due Diligence Guidance for Meaningful Stakeholder Engagement in the Extractive Sector [C(2016)100/ADD1] is available at this address.   
Non-Member Adherents    

Kazakhstan

  • Adherence date: 20 June 2017
Relevant body:
Investment Committee
 
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