Statement: Complaint Under OECD Guidelines For Multinational Enterprises

25th September 2019

Bonsucro has been informed by the UK National Contact Point (UK NCP) for the OECD Guidelines for Multinational Enterprises of the publication of their Initial Assessment regarding a complaint made earlier in 2019 about Bonsucro.

The complaint is made by Inclusive Development International (IDI), Equitable Cambodia (EC) and the Cambodian League for the Promotion and Defense of Human Rights (LICADHO). They allege that Bonsucro Limited (Bonsucro) failed to conduct adequate due diligence and apply leverage to its member, Mitr Phol Group – Thailand (MPG-T) with regard to allegations made by the Complainants. The complainants also allege that Bonsucro does not have in place adequate human rights policy commitments and an effective grievance mechanism in line with the OECD Guidelines.   Bonsucro does not accept the allegations made against it and provided a detailed response to the OECD UK NCP.

The UK NCP has decided that the Complaint is within its scope and has decided to offer to support a mediation between Bonsucro and the Complainants. This decision is made on the basis of the information offered by the Parties, and is not a finding on the merits of the Complaint. It is not a finding against Bonsucro and does not mean that the NCP considers Bonsucro has acted inconsistently with the OECD Guidelines.

Bonsucro intends to accept the offer of mediation by the OECD UK NCP and will engage positively in the process.

Bonsucro continues to engage independent, external experts in the process of review of its Code of Conduct and Grievance Mechanism to ensure alignment with the UNGP effectiveness criteria and OECD Guidelines. Bonsucro has been engaging members and other stakeholders in this process since the end of 2018.   As a full ISEAL member, Bonsucro takes participatory decision-making very seriously.  In accordance with best practice, Bonsucro will publish the draft revised Code of Conduct for public consultation in October 2019 and will make a further announcement at that time.

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Bonsucro & Renovabio: Exploring synergies and advancing GHG reduction in Brazil

Project partners: Earth innovation Institute and Agroicone
Project length: 12 months Budget: $22,347,79
Supporting the Sustainable Development Goals:

RenovaBio is a Brazilian biofuel policy designed to decrease Brazil’s greenhouse gas emissions by 10% by 2029 [compared to 2018], in line with the Paris Agreement on climate change. It aims to do this by incentivising fuel distributors to blend more biofuels into their products. RenovaBio has established a certification scheme for biofuel, towards which Brazilian sugarcane mills are working, that will enable them to trade decarbonisation credits on the Brazilian stock exchange.

Bonsucro continuously seeks to grow awareness and adoption of its standard. In Brazil, this can be achieved by aligning its framework with RenovaBio to optimise costs and time for mills. In 2019, Bonsucro received a grant of US $22,000 from the Earth Innovation Institute to provide a common understanding of how RenovaBio works and how other regions might benefit from this approach.

Bonsucro addressed the topic at Bonsucro Global Week in Bangkok in March 2019, and through three stakeholder forums in Brazil. The Bonsucro team also commissioned a technical comparison study, which enabled the organisation to understand how best to align with RenovaBio’s requirements.

The study has been shared with key stakeholders in Brazil and the project is now complete. Bonsucro is working to incorporate the study’s findings and recommendations through its ongoing Production Standard Revision process.

By aligning opportunities of optimisation, joint work and integration with the Brazilian Government and reflecting it in the Bonsucro Standard, Bonsucro can help to ensure that more producers adopt sustainability standards like Bonsucro.