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- Global
The OECD Guidelines are aimed at multinational enterprises in all sectors, including companies operating in or from countries whose governments adhere to the Guidelines. Observance by companies is voluntary, but governments make a binding commitment to promote the Guidelines and support implementation through National Contact Points (NCPs).
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Introduction
The OECD Guidelines are one of the most widely used international reference points for responsible business conduct. They are recommendations addressed by governments to multinational enterprises, designed to encourage positive contributions to economic, environmental and social progress while minimising adverse impacts associated with an enterprise’s operations, products and services.
A defining feature is their built-in implementation system: National Contact Points for Responsible Business Conduct (NCPs), which governments establish to promote the Guidelines and handle “specific instances” (complaints) by offering dialogue and mediation support.
Reporting under the OECD Guidelines
Although the OECD Guidelines cover many responsible business topics (including human rights, labour, anti-corruption, consumer interests and taxation), their environment and climate provisions create clear reporting expectations. As detailed in Part VI of the Guidelines, these include:
Environmental impact communication: Companies are expected to communicate about environmental impacts linked to their operations, products and services as part of due diligence, and the Guidelines point to widely used reporting standards (e.g., GRI) as helpful references (alongside the Disclosure chapter).
Climate alignment reporting: Enterprises should ensure their GHG emissions and impacts on carbon sinks are consistent with internationally agreed global temperature goals (based on best available science, including IPCC assessments).
Transition plans and targets (incl. scopes): The Guidelines call for science-based transition plans and for adopting, implementing, monitoring, and reporting short-, medium- and long-term mitigation targets, taking account of Scope 1 and 2 and, where possible, Scope 3 emissions.
Offsets transparency: Where carbon credits/offsets are used (as a last resort for unabated emissions), companies should publicly report their reliance on them and key characteristics, distinct from emissions-reduction reporting.
Current status and future outlook
The OECD published the 2023 edition of the Guidelines with updated recommendations spanning climate, biodiversity, technology, business integrity and supply-chain due diligence, alongside updated procedures for NCPs.
Although the Guidelines are voluntary for companies, they increasingly operate as a “soft law” baseline: they’re widely referenced in corporate policies, investor expectations, and due diligence laws and standards. With governments committed to strengthening NCP effectiveness and visibility, companies should expect continued scrutiny of whether their public reporting is backed by real due diligence systems and measurable outcomes.
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