Responsible business conduct and climate change

What does it mean for business to act responsibly in the face of the climate crisis and how can OECD’s RBC instruments support both business and government?

Achieving the goals of the Paris Agreement requires collective action from governments and non-state actors, in particular, the private sector. For business, this means i) reducing greenhouse gas (GHG) emissions and thereby the adverse climate related impacts of their operations on people and the planet; and ii) strengthening the resilience of companies and their supply chains in order to address and adapt to climate change - including impacts on workers, local communities and the natural environment.

The 2021 report of the Intergovernmental Panel on Climate Change (IPCC) highlights that achieving a “minimum” target of net-zero emissions by 2050 is critical in order to limit global warming to 1.5C. This would require at least halving global emissions by 2030 as an interim ambition. As a result, there have been a proliferation of net-zero emission reduction targets by business and other non-party stakeholders. Those businesses that are able to reduce emissions in their operations and supply chains and deliver a just transition to net-zero, will be better able to meet investor and consumer expectations, maintain social licence to operate, mitigate reputational damage, increase competitiveness and protect their bottom line.

The OECD Guidelines for Multinational Enterprises on Responsible Business Conduct and related tools can help business ensure net-zero targets are implemented with integrity, accountability and responsibility – taking into account impacts on both people and the planet. The Guidelines not only capture a broad range of social and environmental expectations but are also government backed and can help business ensure that their net-zero targets align with international commitments, including countries nationally determined contributions under the Paris Agreement.

In Action

2021

OECD-UNFCCC session - Responsible Business Conduct and Climate Action: how global instruments on responsible business conduct can support implementation and accountability of business’ net-zero commitments

Wednesday 3 November, 10-11.15am GMT - Glasgow SEC Centre, Climate Action Room 1

WATCH LIVE STREAM

This joint OECD and UNFCCC session explored how internationally agreed and recognised instruments on responsible business behaviour, namely government-backed OECD Guidelines for Multinational Enterprises on Responsible Business Conduct (RBC) and related due diligence guidance, can help to ensure net-zero targets are implemented with integrity, accountability and responsibility – taking into account impacts on both people and the planet.

The event follows on from the joint UNFCCC-OECD event at COP 25 that explored what it means for business to act responsibly in the face of a climate emergency.

Background note OECD instruments on responsible business conduct: supporting implementation and accountability of business’ net-zero commitments

Read concept note

Watch discussion

Find out more about the OECD, UNEP, UNFCCC secretariat collaboration in sharing a unified message on RBC expectations to strengthen responsible climate action by businesses

2020

OECD-UN Climate Change session - Global Climate Action and Responsible Business Conduct: What does it mean for business to act responsibly in the face of a climate crisis?

OECD-OHCHR session: The business and human rights dimension of climate change: addressing access to remedy

Watch the speech by OECD Secretary-General Angel Gurría

Quote : Dante Pesce - member of the UN Working Group on Business and Human Rights, discuss the session : "the OECD Guidelines for MNEs provides the how to business to help them identify their impacts in a 360 degree way and avoid silos"

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Global Climate Action and RBC

OECD Guidelines for Multinational Enterprises	National Contact Points for RBC

OECD Due Diligence Guidance for RBC	OECD sectoral Due Diligence Guidance