31 Jan 2025

Project

RIA: Joining efforts in a Risk Information Alliance

Risk information is all about compiling and synthesising information about the conditions of production of agricultural and forestry commodities. Developing well-organised, reliable risk data at the national level is a crucial step for due diligence and responsible sourcing.

Challenges

The increasing demands for corporate due diligence and responsible business practices, driven by new laws in major commodity markets, have created a complex and costly landscape for companies and sustainability systems. In response to these challenges, companies typically act independently to understand the main areas of sustainability risks in their supply chains without much collaboration or data sharing. This results in the duplication of efforts, disproportionate financial capabilities, and a higher likelihood of inconsistent findings for national risk assessment.

Beneficiaries

Sustainability certification schemes
Competent authorities responsible for due diligence enforcement
Civil society
Private sector

Objectives

The project aims to establish a Risk Information Alliance that facilitates collaboration among organisations to share risk data. It seeks to develop a joint risk assessment methodology and set of indicators to ensure consistency and credibility in national risk assessments across various commodities and sectors. The Risk Information Alliance will explore how to share existing risk data and how to develop more data jointly as we advance.

The project will focus on the following activities:

Activity 1: Establish the Operational Alliance. The first activity involves formally establishing the Risk Information Alliance. This includes determining the legal set-up, identifying potential members, and establishing a governance structure. This activity will result in a well-defined alliance with clear roles and responsibilities, enabling effective collaboration and resource sharing among members.

Activity 2: Methodology and Indicator Development. This activity focuses on creating a common risk assessment framework, including a joint methodology and agreed-upon indicators. By benchmarking existing risk assessment methods used by member organisations, the Alliance will identify commonalities and key differences to develop a comprehensive approach. The goal is to ensure the new methodology is credible, robust, and widely endorsed across sectors and commodities.

Activity 3: Pilot the Risk Assessment Methodology. The Alliance will conduct pilot risk assessments to validate the newly developed methodology and indicators. Feedback from these pilots will be collected to refine the framework and improve the governance structure of the Alliance.

Activity 4: Design Risk Data Sharing. A risk data storage platform blueprint will be developed to facilitate the sharing of risk information among Alliance members. This will enable members to easily access and incorporate risk data into their own systems, promoting efficient data utilisation.

Activity 5: Joint Fundraising Efforts. This involves coordinating joint fundraising efforts to secure external funding for developing and maintaining risk assessments. The Alliance will collaborate to create a fundraising strategy that aligns with its financing model and operational needs. By pooling resources and collective outreach, the Alliance will attract financial support from various stakeholders, including companies and public agencies.