investor's guide to commodities - PRI Signatory Extranet - Principles ...

46 The Responsible Investor’s Guide to CommoditiesPrinciples for Responsible Investment in FarmlandPRINCIPLE ONE: PROMOTING ENVIRONMENTAL SUSTAINABILITYWe will promote measures aimed atprotecting the environment and contributingto the sustainability of specificcrops and locations, for exampleby reducing soil erosion, protectingbiodiversity, reducing chemical emissions,effectively managing water,and mitigating climate impacts.We will require investment managersand operators acting on ourbehalf to conduct an environmentalassessment identifying the relevantenvironmental impacts and risks ofa planned investment.Based on this environmental assessment,investment managers andoperators will be expected to implementmitigation and managementmeasures relevant and appropriate tothe nature and scale of the proposedinvestment.PRINCIPLE TWO: RESPECTING LABOUR AND HUMAN RIGHTSWe will respect labour and humanrights in our farmland investments.We will require investment managersand operators acting on our behalf todo the same and to avoid complicityin human rights abuses.We will require investment managersand operators to identify relevantlabour and human rights risksand impacts of a planned investmentand to implement mitigation andmanagement measures to addressthem appropriately.Depending on the location and thenature of the investment, we expectinvestment managers and operatorsto explicitly implement policies torespect rights such as those relatingto indigenous peoples, vulnerablegroups, unique cultural systems andvalues, local food security, labour andany other relevant rights in the scopeof their risk assessment and mitigationmeasures.PRINCIPLE THREE: RESPECTING EXISTING LAND AND RESOURCE RIGHTSWe will respect the existing use ofand ownership rights to land andother resources and we will requireinvestment managers and operatorsacting on our behalf to do the same.Investment managers and operatorsacting on our behalf will berequired to implement processes forland acquisitions and related investmentsthat are culturally appropriateand transparent, are monitored, ensureaccountability and the engagementwith relevant stakeholders.For investments with potentialsignificant adverse impacts F on affectedcommunities, the investmentmanagers are expected to implementprocesses to ensure their free, priorand informed consultation G and facilitatetheir informed participation as ameans to establish whether a projecthas adequately incorporated affectedcommunities’ concerns.PRINCIPLE FOUR: UPHOLDING HIGH BUSINESS AND ETHICAL STANDARDSWe will promote high business andethical standards in our farmlandinvestments.We will require that investmentmanagers and operators acting onour behalf respect the rule of laweven where it is poorly enforced.We will also require them to implementprocesses aimed at avoidingcorruption in all its forms, includingextortion and bribery, and to reflectan informed view of industry bestpracticein their operations.PRINCIPLE FIVE: REPORTING ON ACTIVITIES AND PROGRESS TOWARDS IMPLEMENTING THE PRINCIPLES ANDPROMOTING THE PRINCIPLESWe will report publicly on ouractivities and progress towardsimplementing the Farmland Principles,taking into account appropriateconfidentiality considerations.We will encourage other institutionalinvestors to endorse and implementthe Farmland Principles.