In the real world
Key points for companies
To shape a L/JI, a government agency or NGO typically convenes a multi-stakeholder group to develop goals, KPIs, and implementation strategies (companies should see Annex 1 in the PDF version of this Guidance for further details of this process). The company’s role is to bring its perspective to discussions and help find solutions that boost productivity while minimizing negative environmental impacts and ensure respect for human rights. As illustrated here, a company’s level of engagement may vary based on its specific goals and level of investment (and/or risks) in each geography.
External conditions that improve likelihood of success
- Stakeholder interests are sufficiently complementary and/or aligned to develop shared goals and plans for the L/JI
- Local government is committed to progress toward sustainable practices
- A multi-stakeholder body represents the key actors in the landscape/jurisdiction
- That multi-stakeholder group has enough upfront funding to convene and start discussions
- There’s an adequate baseline for legal enforcement and relative lack of corruption
- Skilled facilitation (often by a neutral third party) is available to help build trust and find common ground
The business case for this intervention
- By aligning jurisdictional goals and KPIs with its own sustainability objectives, a company can leverage multi-stakeholder efforts to deliver outcomes it needs to deliver anyway (e.g. mapping of no-go areas, reduced illegality, verified conversion-free supply).
- Dialogue with relevant public agencies as part of the co-design process presents an opportunity to advocate and/or develop solutions to deforestation that minimize the regulatory burden and associated costs.
- Getting involved in the design process can provide a more transparent, affordable, and secure way for companies to voice opinions and indirectly shape local policy than by more directly advocating with government officials.
- Direct engagement with relevant agencies, CSOs, and communities can build relationships that prove valuable in other ways (e.g. being consulted on relevant decisions, familiarity with suppliers and their challenges/priorities).