Document Type

Report/Policy Paper

Publication Date

10-2024

DOI

https://doi.org/10.4060/cd0455en

Abstract

Strong screening processes help to identify and avoid or mitigate risks associated with larger-scale investments in agriculture and food systems at the early stage of the investment assessment process before any commitment has been made, costs incurred, or harms suffered. This publication, Screening for Responsible Investment in Agriculture and Food Systems: Guidance and Tools for Government Officials, seeks to unpack the “what, why, and how” of screening.

Governments are the gatekeepers to investments. They can, in consultation with stakeholders, decide which investors are allowed to conduct business in their country and what types of investments are permitted. This gatekeeping role is essential in a context where global experience of especially larger-scale, land-based investment has shown that not all investment necessarily leads to net beneficial outcomes. Some investments have had severe negative impacts on communities, society, and the environment and have led to substantial financial losses for investors, governments, or other affected stakeholders. And yet, larger-scale investment in agriculture and food systems has the potential to contribute to sustainable development – provided it is responsibly designed, regulated, and operated.

Investment screening is an important policy mechanism that governments can use in their role as gatekeepers to ensure that investment is responsible, essentially asking the questions:

  • Do we want this particular investor to invest or operate in our country?
  • Do we want this particular investment in our country?

Strong screening processes help to identify and avoid or mitigate risks associated with larger-scale investments in agriculture and food systems at the early stage of the investment assessment process before any commitment has been made, costs incurred, or harms suffered. They can also enable governments to identify and shape responsible projects, establish a country’s credibility as an investment destination with an effective enabling environment for responsible investment, establish good government–community–investor relationships, and lay the foundations for informed expectations and decisions about a proposed project.

Disciplines

Environmental Law | Human Rights Law | Law

Creative Commons License

Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License
This work is licensed under a Creative Commons Attribution-NonCommercial-Share Alike 4.0 International License.

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