Responsible sourcing and Biofuel Supply Chains

Organisers

This event is organized in collaboration with

Bioenergy production and use can make a valuable contribution to the sustainable development agenda. With careful management, various forms of bioenergy can help countries meet growing energy demand while concomitantly realizing carbon emissions reductions, climate change mitigation and adaptation efforts and improve livelihoods. However, an increasing demand and supply of biofuels can raise the risk of environmental and social impacts, and exacerbate structural development challenges in many countries, as is the case of increased production of many different globally traded commodities. From increasing deforestation to child labour,  progress in reducing upstream supply chain impacts has motivated the introduction of legislation downstream in many high-income economies – requiring companies to introduce responsible sourcing policies, guided by risk-based due diligence and better stakeholder engagement.

Instances such as the European Union’s (EU)  draft Directive on Corporate Sustainability Due Diligence (CSDD),^[1] the EU Regulation on deforestation-free products and Corporate Sustainability Reporting Directive (CSRD), in addition to supply chain legislation in Norway, the United Kingdom and others,^[2] all point to reducing development risks through production and trade.^[3] This also applies to business and trade in the biofuel sector and important sub sectors, such as Sustainable Aviation Fuels (SAF). Identifying and managing social and environmental risks can be challenging for companies downstream in biofuel supply chains, often thousands of kilometres away from upstream suppliers and development impacts linked to processing and production. To advance, many governments and companies require practical support to understand how to identify and mitigate risks through sourcing, according to the prioritization and likelihood of development risks taking place.

The aim of the side event is to discuss and identify ways in which inclusive growth can be promoted through the identification and mitigation of risks in biofuel supply chains. This side event will bring together both public and private sector stakeholders to share solutions for biofuel supply chains to promote sustainable development. It will also provide a forum for sharing of views on various initiatives that address adverse impacts in global sourcing in biofuel supply chains.

The side event is organized jointly by the Global Bioenergy Partnership (GBEP), an international initiative providing a forum for stakeholders in a joint commitment to promote sustainable bioenergy, and FAO’s Markets and Trade Division (EST) which lead a focus on global value chains (GVCs) and development through its work on Responsible Business Conduct (RBC) and the OECD-FAO Guidance for Agricultural Supply Chains.^[4] Its advisory services on RBC are designed to help governments, businesses and other stakeholders advance with risk-based due diligence and reduce development impacts from upstream production to retail.

[1] Some EU countries already have due diligence legislation in place, including Germany’s Act on Corporate Due Diligence in Supply Chains, France’s Law on Corporate Duty of Vigilance.

[2] The EU’s Proposal on Deforestation-free products responds to five commodities, namely cattle/beef, cocoa, coffee, palm oil, soy and wood.

[3] Several countries already have certain thematic strands of supply chain due diligence in place, such as the UK and Australian legislation on modern slavery; other countries, including Canada, Japan, Mexico and Thailand, are advancing with legislation on risk-based due diligence in (agricultural) supply chains;

[4] The OECD-FAO Guidance is embedded in the RBC policy frameworks of over 60 countries, including  most EU Member states, the UK, Norway, Switzerland, Australia, US, Brazil, Mexico, Argentina and many others; it is the leading global sector framework for E&S risk. It was also recently endorsed by 64 agricultural ministers at the Global Forum for Food and Agriculture (GFFA) in 2023.