Capitalizing on Commitments New Initiatives, Lessons, and Next Steps for Engaging the Private Sector on Community Land Tenure World Bank Land and Poverty Conference 2016 Bryson Ogden – RRI Ben Bowie – TMP Systems Thursday, 17 March 2016 Washington, D.C.

2 State of Play 1.Private interest in land acquisition remains, but operational and reputational risk appears to be rising; 2.Proliferation of guidance & commitments – but much more to be done on uptake and implementation; 3.Growing recognition that respecting rights and managing risk requires different business models

3 Interlaken Group  The Interlaken Group is a multi-stakeholder forum composed of representatives from companies, investors, international organizations and civil society groups.  The Group has met regularly since 2013 to identify practical ways that companies and their investors can support improved land governance and the land rights of rural populations.  Company representatives from some of world’s largest producers and purchasers of agricultural and forestry commodities Coca-Cola CDC Group DFID EIB ERM Forest Peoples Programme Global Witness Rabobank Rio Tinto RRI (co-chair) Stora Enso The Forest Trust TMP Systems Unilever IFC (co-chair) Landesa Nestlé OECD Olam Omidyar Network Oxfam

4 A Land and Forest Rights Guide: Support for Aligning Company Operations with the VGGT Collaborative product - available as hard copy and web-based toolhard copy web-based tool Complements other guidance initiatives; only guidance driven by private sector in coordination with NGOs Promotes a “race to the top” for company performance Demystifies an area where currently only high level guidance exists through clear navigational support for respecting land tenure rights and reducing business risk

5 Next Steps 1.Moving into an implementation phase:  Members socializing and promoting Guide within their networks;  Nestle tested Guide in field visit to palm oil suppliers in Indonesia;  IG members invited by EIB to hold dialogue with bankers and PMs, but also clients. 2.Exploring new products and/or issues:  Members reporting that legacy issues are emerging as a key, contentious issue, and a gap in the Guide;  Potential entry point for governments. 3.Pursuing country-level connections:  Leveraging the power of the RRI and IG member networks.

6 Demonstrating Risk to Incentivize Action There is not such thing as a “clean concession” or “idle land”: Geospatial evidence shows that 93-99% of concessions are inhabited. Source: TMP Systems, 2014 The risks associated with failing to respect rights are significant: Analysis of almost 400 cases of dispute over rights shows that almost half suffered financial impacts and almost a third severe impacts. Source: TMP Systems 2016 Managing these risks demands an operational response: Just 7% of these cases were driven primarily by compensation. In 93% of cases the solution involves identifying and responding to local interests Source: TMP Systems 2016

7 The IAN Tools: Managing Tenure Risk UK DFID (LEGEND) funded tools to help investors to avoid and remediate disputes over land and resource rights IAN Risk: Open source quantitative assessment tool that gives investors a quick and easy means of approximating exposure to tenure risk at the project and portfolio level IAN Diligence: Investor-oriented, sector-specific guidance on how to identify and manage tenure risk from beginning to end of the project lifecycle

8 Engaging Investors and Supply Chain Actors Lowering barriers to engagement: free resources based on an evidence based assessment of the risk case Testing beta versions to create and document a track record of success and learning Demonstrating that local engagement stands at the heart of environmental, social and governance (ESG) issues Local experts = local people

9 facebook.com/rightsandresources