The production of agricultural and forestry commodities is a major driver of deforestation, ecosystem conversion, and human rights abuses. It is also associated with significant biodiversity loss and greenhouse gas emissions. The urgency of these issues calls for immediate action, requiring companies to set strong commitments backed by credible action plans.
To support this effort, the Accountability Framework initiative (AFi) launched its new Operational Guidance on Commitments and Progress Pathways, which guides companies and financial institutions on how to establish responsible supply chain commitments, as well as how to create the stepwise plans and milestones needed to achieve them. Furthermore, the guidance supports companies’ business partners and other stakeholders in assessing a company’s ambition levels, plans, and performance.
“The new guidance provides useful direction for companies setting and implementing commitments on deforestation, ecosystem conversion, and associated human rights. It sets out clear expectations for effective corporate action over time, and keeps the bar high even when targets are missed,” says Emma Thomson, corporate performance research workstream lead, Global Canopy, a member of the AFi Coalition.
Key takeaways:
The new Operational Guidance is structured across four sections:
- Introduction: Outlines key terms, concepts, and principles for strong commitments and progress pathways.
- Commitments: Includes detail on commitment setting, including scope, form, and language.
- Progress pathways: Features guidance on time-bound progress pathways for achieving commitments, including target dates, milestones, and action plans.
- Fulfilling commitments and adjusting course when necessary: Contains an explanation of what it means to fulfil a commitment and sustain this achievement over time, as well as what companies should do if they miss a target or milestone.
· The document also includes an annex that contextualizes the guidance for five different company types: commodity producers, traders and other first buyers, downstream buyers, investors, and banks.
· The guidance increases the Accountability Framework’s emphasis on the development of time-bound milestones and action plans.
· The guidance also provides a clear path forward for all companies, no matter where they are in their journeys. This includes:
- Companies on track with their time-bound targets: For companies that have set and met (or are close to meeting) their commitments, the guidance outlines what to do next and how to maintain high performance in changing business environments.
- Companies off track with their time-bound targets: For companies behind on their commitments, the guidance offers ways to accelerate progress and address gaps using time-bound plans.
- Companies without commitments: For companies that haven’t yet set commitments, the guidance provides clear steps on how to do so, including establishing credible, time-bound action plans and measurable milestones.
