coll. - OECD due diligence guidance for meaningful stakeholder engagement in the extractive sector.

The OECD Due Diligence Guidance for Meaningful Stakeholder Engagement in the Extractive Sector (the Guidelines) provides practical guidance to mining, oil and gas enterprises in addressing the challenges related to stakeholder engagement. This Guidance is part of the work the OECD undertakes to implement the OECD Guidelines for Multinational Enterprises (the OECD Guidelines).

The OECD Guidelines, which form an integral part of the Declaration on International Investment and Multinational Enterprises (the Investment Declaration), are the most comprehensive set of recommendations in existence today on responsible business conduct (RBC).

Properly conducting meaningful stakeholder engagement is particularly important in the extractive sector, which is associated with large, resource-seeking financial and infrastructure investments, immobile production, a long project lifecycle and extensive social, economic and environmental impacts.

When the OECD Guidelines were revised in 2011, a new provision was added stating that multinational enterprises should engage with relevant stakeholders in order to provide meaningful opportunities for their views to be taken into account in relation to planning and decision making for projects or other activities that may significantly impact local communities. The OECD Guidelines also call for multinational enterprises to carry out risk-based due diligence [] to identify, prevent and mitigate actual and potential adverse impacts [] and account for how these impacts are addressed.

In response to the inclusion of these new principles in the updated OECD Guidelines and in view of the importance of this subject, the OECD Investment Committees Working Party on Responsible Business Conduct agreed to develop a Due Diligence Guidance for Meaningful Stakeholder Engagement in the Extractive Sector.

The Guidance refers to existing standards to help enterprises observe them and undertake risk-based due diligence. The Guidance only refers to the parts of the OECD Guidelines and other standards that are most relevant to stakeholder engagement and due diligence and does not aim to substitute them. Enterprises should thus refer directly to each of these standards before making any claims regarding their observance. Not all adherents to the Investment Declaration endorse the standards considered in this Guidance.

An OECD Recommendation on the Due Diligence Guidance for Meaningful Stakeholder Engagement in the Extractive Sector was adopted by Council on 13 July 2016. While not legally binding, the Recommendation reflects the common position and political commitment of OECD members and non-member adherents.