Guardian article on 'Due Diligence' under Environment Bill
2021-0018
Members may have seen an article in the Guardian published yesterday that focuses upon 'due diligence' under the Environment Bill. AIC was interviewed, alongside a number of other organisations in the food and farming industries.
FIAS Update - Spring 2020 edition xxxx
This briefing is to make members aware of the article, and the AIC response to it. Attached is a full copy of the statement provided to the Guardian, which appeared to try and suggest supply industries are attempting to water down the Bill or remove the clause together - which is not AIC's intention. Members will find that the text of the piece differs from the headline.
As the Environment Bill is now progressing again through Parliament, AIC will continue to work with farming organisations and parliamentarians to ensure that the Bill's provision reflect the realities of the supply chain and building upon existing roundtables and workstreams between Government and industry.
Statement and responses to Guardian questions from AIC below:
AIC is a trade association, representing a wide range of member organisations, including those that supply UK farmers with animal feed. For the purposes of the Bill, some AIC members utilise soy and palm oil in feed materials.
AIC and its members strongly support the Bill’s objective of preventing the import of commodities to the UK that have been produced on land that has been illegally deforested. There is a role for Government in helping to prevent this, alongside the agri-supply industry as a partnership approach.
As it stands, AIC looks forward to further detail in the Bill on how this due diligence provision will be carried out. Businesses supplying UK farms will need greater clarity on the proposals as currently drafted, and how any potential unintended consequences can be avoided. Information is also needed on how these proposals could impact UK farmers, and the competitiveness of the UK livestock sector against other countries if any future legislation is unevenly applied.
The areas where AIC would like greater detail, include:
- Imported products made using ‘embedded’ forest risk products (such as composite food products or meat from animals fed on forest risk commodities) are not mentioned in the Environment Bill and must be included in order to achieve the Government’s stated aims.
- Bulk commodities are often sourced or imported from a number of different regions and therefore grouped. AIC is asking for further clarity and discussion as to how grouped consignments can demonstrate adherence to local laws that may differ from region to region.
- The recent consultation and Bill documents did not recognise the roles of existing schemes that certify deforestation-free or legally sourced product. AIC wants to know what existing schemes and initiatives, if any, can be incorporated within the proposals.
- The process for sanctions or investigations needs to be clearly set out.
These a just a few examples where the proposed Bill lacks sufficient detail on the practical considerations. As outlined above, AIC members and their farming customers welcome the drive of this legislation. AIC now wants to work with Government and the wider supply chain to ensure that the measures achieve the intended consequence of stamping out illegality in the supply chain. This can only be achieved if clearer proposals are set out and better engagement is offered by Government to industry – something AIC hopes will take place as the Bill progresses.
Questions from the Guardian
1) AIC says in its response to the consultation: "The process must be extremely robust because it could unnecessarily and unwittingly damage the reputation of a firm...This is especially true of larger firms, national or multinational firms that are answerable to shareholders: it cannot be understated how damaging a government issued fine or reprimand could be."
Does this mean AIC is seeking to say that there should not be fines for contravening the proposed due diligence requirements?
No. The AIC is clear that the process must be robust and fair. If any business in a supply chain is knowingly supplying products sourced illegally, it is right that sanctions are applied.
2) Also in the consultation, AIC says the government should "recognise and work with existing measures and initiatives in place before anything else".
Does that mean that AIC opposes the proposed due diligence requirements?
No. The AIC position is that the proposed legislation should build upon the UK roundtables on sustainable soy and palm and UK Global Resource Initiative whose recommendations were the precursor to the due diligence legislation
