Private Sector Guide en December2023

Practical Guide
How to engage with the

private sector
Practical Guide
How to engage with the private sector
Table of contents
List of abbreviations iii
Foreword iv
Introduction 1
Audience/users 1
Key support tool – the FAO CONNECT portal 1
Roles and responsibilities of FAO actors 2
Section I. The Private Sector Strategy and rationale for engagement 5
1.1 Introduction 6
1.2 What is the private sector? 6
1.3 Why engage with the private sector? 7
1.4 Why due diligence? 7
1.5 How to work with the private sector? Common sense, strategic thinking and soft skills 8
Section II. Before you start – areas for consideration before you engage 9
2.1 What to consider before you start 10
2.2 Private Sector Strategy Fit 10
2.3 Programme Fit 10
2.4 Modalities/Types of engagement 11
2.5 Principles of engagement 11
2.6 Impact 12
Section III. How to approach privatesector engagement 13
3.1 Introduction 14
3.2 Overview of the FAO privatesector engagement cycle 14
3.2.1 Identifying the engagement type 14
3.2.2 Spectrum of private sector engagements 14
3.3 Engagement cycle – step by step 16
3.3.1 Informal engagement 16
Step 1: Engagement identification and initiation 17
Step 2: Due diligence and risk assessment/management 19
Step 3 Negotiation and development of informal agreements 22
Step 4: Clearances and approvals 22
Step 5: Implementation, monitoring and evaluation 23
Step 6: Reporting and communicating results 23
3.3.2 Formal engagement 24
Step 1: Engagement identification and initiation 27
Step 2: Due diligence and risk assessment/management 32
Step 3: Negotiation and development of formal agreements 36
Step 4: Clearances and approvals 38
Step 5: Implementation, monitoring and evaluation 41
Step 6: Reporting and communicating results 43
Section IV. Where to get support 45
Section V. Annex 47
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List of abbreviations
ADG FAO Assistant-Director General
CPF Country Programming Framework
CRM Customer relationship management
CSF FAO Finance Division
CSH FAO Human Resources Division
DDG FAO Deputy-Director General
EPC Engagements and Partnerships Committee
ESF FAO Food Systems and Food Safety Division
FAO Food and Agriculture Organization of the United Nations
FAOR FAO Representative
FLO Funding Liaison Officer
FPMIS Field Programme Management Information System
FRAME FAO Framework for Due Diligence and Risk Assessment/Management for
Engagements with the Private Sector and other Non-State Actors
GCF Green Climate Fund
GEF FAO Global Environment Facility
GRMS Global Resource Management
HIH Initiative Hand-in-Hand Initiative
IBRMP Impact/benefit and risk mitigation/management plan
LDC Least developed country
LEG FAO Legal Office
LoI Letter of intent
MSME Micro-, small and medium-sized enterprise
MoU Memorandum of Understanding
NSA Non-state actor
OCB Office of Climate Change, Biodiversity and Environment
OCC FAO Office of Communications
ODG FAO Office of the Director General
OER FAO Office of Emergencies and Resilience
OPIM Operational Partners Implementation Modality
OSP FAO Office of Strategy, Programme and Budget
PPAs Priority Programme Areas
PSR FAO Resource Mobilization and Private Sector Partnerships Division
PSRB FAO Private Sector and Business Development Team
PSS FAO Project Support Division
PSU FAO Partnerships and United Nations Collaboration Division
PWS Publications Workflow System
RAF FAO Regional Office for Africa
RAP FAO Regional Office for Asia and the Pacific
REU FAO Regional Office for Europe and Central Asia
RLC FAO Regional Office for Latin America and the Caribbean
RNE FAO Regional Office for Near East and North Africa
RR Regional Representative
SDGs Sustainable Development Goals
SIDS Small island developing states
SOEs State-owned enterprises
UNSDCF United Nations Sustainable Development Cooperation Framework
iii
Foreword
I am pleased to share with all of my colleagues in the Food This Guide outlines an approach to working successfully
and Agriculture Organization of the United Nations (FAO) with a broad range of private sector actors, from farmers
this new Guide on engaging with the private sector. The (smallholders and family farmers, foresters, livestock
Guide provides practical information on how to enhance herders and fishers) to micro-, small and medium-
FAO’s work through private sector engagement, using FAO’s sized enterprises (MSMEs), large companies, financial
Strategy for Private Sector Engagement (2021–2025) institutions, industry and trade associations, consortia and
as a roadmap to build and foster active and wide-ranging philanthropic foundations. It provides support for FAO’s
engagements. work with the private sector at all levels (country, regional
and headquarters) and across all work streams, divisions
All forms of engagement and partnership are key to and units for common sustainable development ends. While
achieving the ambitious Sustainable Development Goals engaging with the private sector presents certain risks,
(SDGs). Mobilizing the capacity and resources of the private this Guide also provides an overview of how to navigate our
sector is essential if we are to truly transform our agrifood current processes and steps (including due diligence) to
systems to make them more efficient, inclusive, resilient build fruitful and mutually beneficial engagements while
and sustainable. Private sector entities are vital partners, keeping impartiality firmly at the heart of everything we do.
with the potential to advance many parts of those systems
with innovation, resources, knowledge and technology. I would like to emphasize that this Guide is a living document.
This is particularly pertinent in the face of global challenges It is a first step in an iterative process as we continue to
such as increasing inequalities, the climate crisis and the streamline our procedures and integrate elements that will
repercussions of the global pandemic, all of which have the enhance the way we work, including a Customer Relationship
potential to exacerbate food insecurity and malnutrition. FAO Management (CRM) system – a first for FAO! It is also part a
cannot achieve its mandate if we work in isolation, and so it collaborative process – as our engagement with the private
is vital that we consider, discuss and strengthen the skills sector will be driven by all of you.
required to proactively engage with a range of stakeholders.
I am confident that this Guide will provide some continued
Our private sector engagements should bring about support and clarity to you and complement the recently
transformational change and have measurable, sustainable launched CONNECT Portal, an online one-stop shop for all
impact and multilevel benefits in support of FAO’s Strategic FAO private sector engagements. The FAO Partnerships
Framework (2022-31), helping to ensure better production, and United Nations Collaboration Division (PSU) together
better nutrition, a better environment and a better life – with the FAO Resource Mobilization and Private Sector
leaving no one behind. Our engagements should also be Partnerships Division (PSR), together with colleagues
results-driven and country-focused, which means working from the Project Support Division (PSS), the Office of
for joint results through FAO’s Regional Initiatives and Communications (OCC), the Legal Office (LEG) and Regional
Country Programming Frameworks (CPFs), and working as Offices, are standing by to support you in engaging with
“One UN” in the context of the United Nations Sustainable the private sector. We would also encourage you to use the
Development Cooperation Framework (UNSDCF). CONNECT Portal, as well as the growing suite of capacity
development tools that will be coming on stream in the
We need to broaden our engagement with the private sector coming months.
in ways that will increase the impact of our work, by fostering
innovation, encouraging data sharing and dissemination, I look forward to working with all of you strengthen our
and increasing SDG-aligned investments in the food and engagement with the private sector. We rely on your
agricultural sectors. Whether it is inviting the private sector feedback to help us further improve the way we work. Keep
to be part of a panel presentation or embarking on a fully- the honest, productive and solution-oriented exchanges
fledged joint project, our private sector engagements need coming – they make us better as an Organization and a
to be smart, strategic, and foster impactful and innovative partner!
relationships.
We have to be open to a wide variety of engagements –

informal and formal. And, it is important to consider whether
an engagement with the private sector should even involve
a signed, formal agreement. Many of our daily and personal
interactions can bring about change and stimulate action Beth Bechdol
and do not necessarily require a formal partnership. Deputy Director-General
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Practical Guide
Introduction and due diligence screenings to finalization and

implementation, risk management and reporting.
This practical Guide is designed to lead FAO employees

through the private sector engagement process. Under
the FAO Strategy for Private Sector Engagement (2021-
2025), FAO employees at both headquarters and
Key support tool –
decentralized offices are encouraged to proactively
engage with the private sector (see Figure 2). This Guide
the FAO CONNECT portal
aims to motivate FAO employees to identify and pursue Before diving into the practical process explained in this
opportunities to further FAO’s mandate. It offers: Guide, it is important to introduce the CONNECT Portal
which lends critical support to private sector engagement.
• the rationale for engaging with the private sector
It is a web-based platform that serves as a one-stop shop
based on the Strategy for Private Sector Engagement
(2021-2025); for FAO’s work with the private sector and offers:
• elements to consider before you start; • a place to showcase opportunities for private sector
engagement and the results achieved;
• step-by step instructions on and explanations of the
• step-by-step guidance and tools on how to engage
process by engagement type;
with the private sector (as part of this capacity
• supporting documents and case studies; and development package);
• information on tools for applying the guidance. • access to a database of formal agreements with
the private sector.
Audience/users Designed to provide transparency on and accountability

for FAO’s work with the private sector, the platform
currently offers two levels of information depending on
The Guide is aimed at all FAO employees who already whether the user is external or internal to the Organization
engage or plan to engage with the private sector. (see Figure 1):
Anyone can identify a need or opportunity for potential
engagement. Decentralized offices have a particularly • Level 1 is accessible to external users (the
public) and provides updates on news and events,
critical role to play in building on-the-ground partnerships opportunities for the private sector to engage with
with the private sector, while FAO employees at FAO, an overview of different means of engagement
headquarters offer a unique perspective on strategic and the partnership cycle, details of FAO’s formal
global engagement along key lines of thematic interest. private sector partnership agreements (through
While different FAO units are a part of the private sector memorandums of understanding or letters of intent),
engagement process, this Guide focuses specifically on success stories and resources.
the process for those:
• initiating contact – any FAO employee, from here • Level 2 is accessible to internal users (FAO
employees) on request or to FAO Members registered
on referred to as the Contact Lead, who then may
on the FAO Members Gateway and offers greater
be designated Partnership Manager (for formal
detail on FAO’s formal engagements (such as detailed
engagements);
legal agreements, workplans and contact details,
• overseeing the engagement/partnership – Head accessible through each partner profile), as well as
templates and guidance for FAO employees to use in
of the proposing Office1, Centre or Division,2 who
oversees the engagement/partnership and to their engagements with the private sector. Please visit
whom the Contact Lead/ Partnership Manager is the CONNECT Portal and follow the instructions for
accountable, working closely in collaboration with Level 2 access. For more information and to request
PSU/Regional Partnership Officer. The Head of Level 2 access, please contact FAO-Connect@fao.org.
Office, Centre or Division, as the engagement moves
forward will become the Head of the Proposing • The CONNECT Portal has been enhanced with a Level 3,
housing a customer relationship management (CRM)
Unit/Formulator3. Overseeing the engagement/
system that enables FAO employees to track all aspects
partnership involves closely following the key steps
of the private sector engagement management process,
of the FAO’s Private Sector Engagement Cycle, as
including FAO crowdfunded intelligence, automated
described in this Guide, all the way from initiation
forms, guided approval workflows, reports and real-
1 Including heads of decentralized offices i.e. Regional Assistant Director Generals (ADGs)/Regional Representatives (RRs) and FAO Representatives (FAORs).
2 If the engagement takes place in the context of project formulation, then the FAO Project Cycle Definition of “project FAO Formulator, Lead Technical Officer and Budget
Holder” applies, available in the FAO Project Cycle Handbook.
3 Heads of Liaison Offices and Subregional Coordinators cannot be Heads of the Proposing Units/Formulators for private sector engagements.
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time dashboards. The information captured in the CRM best practices that have been recorded in the system.
system is visible to FAO stakeholders in the engagement For more information, please refer to the Customer
processes, with access permissions granted according to Relationship Management System (CRM) Brief and the
their roles and responsibilities. The CRM system allows CRM User Manual.
FAO employees to benefit from lessons learned and
FIGURE 1. CONNET LEVEL OVERVIEW
Roles and responsibilities

While the instructions in this Guide focus on the requirements and actions of the person initiating contact (Contact
Lead/Partnership Manager), multiple FAO employees and units are involved. Table 1 below provides an overview of
each of their roles and responsibilities.
TABLE 1. ROLES AND RESPONSIBILITIES WITHIN THE PRIVATE SECTOR ENGAGEMENT CYCLE
Role in PS Engagement Applies to Can be performed by Responsibilities
Informal Any FAO employee based in the The Contact Lead responds to and works closely with the
and Formal unit proposing the engagement Head of the Proposing Unit on developing the engagement.
The Contact Lead is responsible for:
engagements
• prospecting and proposing the engagement;
• developing, managing and reporting on the
implementation of the engagement.
If a formal partnership results from the engagement, the

Contact Lead may be designated Partnership Manager.
If the identification of the engagement is taking place within

a project proposal, please note that the FAO Guide to the
Project Cycle also applies.
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Role in PS Engagement Applies to Can be performed by Responsibilities

Informal At HQ: The Head of the Proposing Unit/Formulator oversees
engagements Heads of Offices, Centres or the development, management and implementation of the
engagement or partnership, supported by the Contact Lead/
Divisions. Partnership Manager and PSU.
The Head of the Proposing Unit/Formulator is responsible

for ensuring due process is followed according to FRAME and
Formal In Decentralized Offices: the FAO Private Sector Engagement Cycle, described in this
engagements Guide.
• Assistant Director
General (ADG)/ Regional The Head of the Proposing Unit/Formulator is responsible for:
Representative (RR) for • assessing from a policy perspective whether the
proposed collaboration is in the interest of FAO
regional collaborations; as a whole, prior to initiating any negotiation;
• designating a Partnership Manager for the
• Sub-Regional Coordinator for proposed engagement;
subregional collaborations; • providing confirmation of the programmatic
relevance of the proposed engagement and
• FAO Representative (FAOR) ensuring relevant technical offices are consulted
as necessary;
for national/country-level
• submitting the proposed engagement Concept
collaborations Note to PSU for review;
• requesting due diligence and risk assessment to
PSS, as required;
• preparing the impact/benefit and risk
mitigation/management plan (IBRMP), as
required;
• reviewing and providing clearance to a draft
agreement once agreed by the counterpart,
taking into account the interests of the
Organization, including the legal protections
that it requires.
Formal Any FAO staff member, usually the In the case of formal engagements, a Partnership Manager is
engagements person who acted as the Contact designated by the Head of the Proposing Unit
Lead. The Partnership Manager is a FAO staff member who acts as
Contact Lead and is responsible for:
• the technical aspects of the engagement;
• day-to-day activities under the agreement,
including moving the process along,
implementation, monitoring and reporting on
the engagement and supporting the FAO Head
of the Proposing Unit /Formulator, managing
the engagement.
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TABLE 2. FAO ROLES AND RESPONSIBILITIES

Role Responsibility
Line A and B Core Leaders and reporting lines are responsible for providing written clearances on
agreements with the private sector as covered by the Administrative Circular 2022/01 on the procedures
Line A and B Core Leaders for the preparation, clearance, signature and archiving of agreements, before final submission to the
Legal Office (LEG). Line A and B Core Leaders and reporting lines are listed in the Administrative Circular
2021/11.
The ADG/RRs oversee the work of the decentralized offices in their respective regions. They confirm the
Assistant Director programmatic relevance of the proposed engagement, are responsible for requesting due diligence and risk
General (ADG)/ Regional assessment and for the preparation of the IBRM, as required, and clear agreements led by decentralized
Representative offices.
PSU provides backstopping and facilitation support for development of engagements with the private
Partnership Officers, sector during the whole private sector engagement cycle, including sharing best practices and advising
Partnerships and United on the modalities of private sector engagements. PSU also monitors the overall alignment of the private
sector portfolio with the Strategy for Private Sector Engagement and reports to FAO’s Governing Bodies.
Nations Collaboration
Division (PSU) N.B. Please refer directly to PSR for financial contribution agreements and in-kind contribution agreements
where philanthropic foundations are involved.
Regional Partnership Officers advise, support and facilitate the formulation of engagements with the
Regional Partnership private sector at the regional and country level. They are the primary contact points for all FAO employees
Officers engaging the private sector in their respective regions. They work closely with PSU and Project Support
Services Division (PSS).
PSS performs due diligence and risk assessment on the private sector (and other NSAs) entity in the
Project Support Division context of the prospective engagement, is the business owner of the Framework for Due Diligence and
(PSS) Risk Assessment/Management for Engagements with the Private Sector and other NSAs (FRAME) and
serves as the Secretary of the Engagements and Partnerships Committee (EPC).
OCC is the business owner of the FAO Logo Policy and Guidelines and provides guidance where needed on
Office of Communications use of the FAO logo for informal engagements or formal partnerships that involve brand visibility. It also
(OCC) advises on other issues falling under its purview, such as copyright and other intellectual property clauses
in agreements and on partnerships whose primary objective is communications or advocacy.
The EPC is the decision-making committee whose membership is composed of FAO’s Core Leadership,
Engagements and with other key staff as observers. It reviews all low- (ad interim), medium- and high-risk cases by assessing
Partnerships Committee the prospective engagement’s clarity of intent, its potential benefits, impact and risk mitigation plan vis-a-
(EPC) vis the risks identified and assessed in the due diligence report and provides policy guidance in accordance
with the Administrative Circular 2021/07.
The FLO, in the context of this Guide, advises and supports private sector engagements entailing a financial
Funding Liaison Officer contribution. The FLO ensures that all the documentation is in line with both corporate and resource-
(FLO) partner requirements. For more detail on the role of the FLO, please see the FAO Guide to the Project
Cycle. FLOs are predominantly Partnership Officers from PSR, the Office of Emergencies and Resilience
(OER), the Office of Climate Change, Biodiversity and Environment (OCB), the Global Environment Facility
(GEF) or the Green Climate Fund (GCF).
LEG reviews and clears legal agreements, and may be consulted by the Reporting Line A or ADG/RR when concerns arise as to
Legal Office (LEG) FAO’s proposed involvement in an event. The role of LEG in the project cycle steps related to funding agreements is described
in the FAO Guide to the Project Cycle (add hyper link to FAO Guide to the Project Cycle FAO Guide to the Project Cycle.
CSF provides policy and operational support for all finance, accounting and reporting functions for
Finance Division (CSF) FAO staff at Headquarters and all Decentralized locations. CSF clearance is a part of the project cycle
clearances required for receiving financial contributions from the private sector.
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Section I.
The Private Sector Strategy and
rationale for engagement
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1.1 Introduction PSS is responsible for the due diligence and risk
assessment/management of proposed engagements
with private sector (and other NSAs), guided by the
The new FAO Strategy for Private Sector Engagement new due diligence framework for risk assessment and
(2021‒2025) (the “Private Sector Strategy”) sets out management of engagements (FRAME) for engaging with
a vision for proactive engagement to capitalize on the private sector and other NSAs. The due diligence and risk-
private sector’s potential to contribute to FAO’s Strategic assessment process, review and approval workflow apply
Framework (2022–2031) for “more efficient, inclusive, in the same way to all NSAs.
resilient and sustainable agrifood systems for better
production, better nutrition, a better environment and
a better life, leaving no one behind”. FAO is seeking
substantial engagement in support of its Programme
Priority Areas (PPAs), Regional Initiatives and CPFs in the FIGURE 2: PRIVATE SECTOR ENTITIES
context of the United Nations Sustainable Development
Cooperation Framework (UNSDCF).
The private sector – large or small, local or global – is What is the private sector under the Strategy?
considered a crucial ally in the global fight against food
insecurity, malnutrition and poverty. The ambitious 2030
Agenda requires all forms of partnership and resources to
achieve the SDGs.
The private sector is a sub-set of non-state actors:
This section provides an overview of the rationale behind
the Organization’s Private Sector Strategy. It explains
what constitutes the private sector, why engagements
with the private sector are critical to FAO’s work and the
importance of the due diligence process. It also highlights
the key skills required of FAO staff. Farmers and farmers’ Producers’ organizations
g
organizations and cooperatives
1.2 What is the private sector?

FAO considers the private sector to include seven types of
entities, ranging from farmers and farmers’ organizations
to philanthropic organizations and multinational
companies, as shown in Figure 2. The private sector also Micro-, small, and Large enterprises
spans industry, trade associations and consortia that medium-sized enterprises (incl. multinational and state-owned)
represent private interests. Any consortium, organization
or foundation largely funded or governed by private
entities are considered private sector, as are state-owned
enterprises (SOEs). Indeed, given the level of transaction
costs associated with engaging a wide range of entities,
FAO encourages the consideration of relationships with
associations or consortia, as this may reduce the risk of
Financial institutions Industry,y trade associations
perceived market bias towards any one company. and private-sector consortia
The private sector is one of three groups of NSAs: i)
civil society, ii) academia and research institutions and
iii) private sector.NSAs are defined and collectively referred
to in the FAO Organization-wide Strategy on Partnerships.
This overarching framework also defines NSAs-specific
strategies, policies and operational procedures. Although
some are identical for all groups, others are not. It is Philanthropic foundations
necessary to follow both the overarching framework and
the policy specific to the intended type of NSA engagement.
This Guide looks solely at private sector engagement.
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1.3 Why engage with the private sector? 1.4 Why due diligence?
Private sector entities are increasingly committing to Due diligence refers to a set of criteria, parameters and
aligning their business approaches with the values and analytical practices used to identify and appraise the
goals of the 2030 Agenda. Many cite the theory of the type and level of reputational risks versus the benefits
“triple bottom line”, which posits that rather than one to which a United Nations organization could be exposed
bottom line ‒ profit ‒ there should be three ‒ profit, people to through interaction or association with the private
and the planet. This is also known as creating shared sector or any NSAs. The due diligence risk assessments
value: creating economic value in a way that also creates and recommendations are an integral part of FAO’s
value for society by addressing its needs and challenges. partnership prospecting, decision-making and risk
management systems.
FAO recognizes the distinct role of the private sector in
areas such as innovation, trade and investment and its FAO’s Framework for due diligence and risk assessment/
ability to impact food systems and lead transformation at management for engagements with the Private Sector
scale. FAO aims to ensure that its engagements with the and other NSAs (FRAME) adopts the Private Sector
private sector contribute to several of its objectives, as Strategy’s core set of guiding principles for engagement.
described in Table 3. The principles focus on established United Nations
values, such as neutrality, integrity and independence,
TABLE 3: FAO BENEFITS FROM ENGAGING WITH THE PRIVATE SECTOR transparency and avoiding conflict of interest.
• Support and scale up innovation
When screening proposals are submitted for due diligence
Innovation • Mobilize scientific and evidence- and risk assessment, PSS is responsible for:
based expertise
i. profiling the prospective private sector/
• Help businesses evolve how they NSAs partners to gain evidence that informs
operate in food security development both potential opportunities and risks,
and agriculture starting with the screening of entities against
• Encourage investment in food and a set of defined criteria to assess risk level;
Investment agricultural systems
• Close key financing gaps that are ii. identifying risk mitigation measures to avoid,
impeding the achievement of the minimize and/or manage risks; and
SDGs
iii. reviewing the potential risks and benefits
• Support developing the capacity of of the proposed partnership, to ensure that
Enhanced capacity smallholder farmers and MSMEs decision-making on whether/how to engage
with a private sector entity/NSA is based on
• Generate data that can help adequate assessment of potential benefits,
accelerate innovation, evidence- impact and risks.
Data-sharing based decision-making and SDG
monitoring PSS’ role under FRAME is to ensure management’s
informed decision-making and an appropriate risk-
• Adopt priorities and business mitigation/management setup; it does not provide
strategies that incorporate and clearance on proposed engagements.
promote sustainable practices
Joint sustainable • Recognize the private sector’s The need for and level of due diligence required will
development contribution to the food security and depend on the type of the engagement proposed. This
objectives nutrition of the world’s population Guide expands on the due diligence process in Section 3,
through sustainable methods of in particular, the process involved in Step 2 (Due diligence
production that minimize the impact and risk assessment).
on the environment
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1.5 How to work with the private sector?

Common sense, strategic thinking and soft
skills
Engaging with the private sector is an opportunity to
apply a new skill set, discover different ways of working
and explore novel initiatives that can help to improve
agrifood systems at every level. Negotiating engagements
and partnerships involves using common sense, strategic
thinking and soft skills.
Using common sense throughout the engagement cycle

by referring back to Guide Sections 1 and 2, means
continuously checking whether the potential engagement
aligns with FAO’s goals and principles and is worth the
upfront investment and transaction cost involved. It is
important to be clear what FAO can and cannot offer and
also emphasize how the private sector entity may benefit,
to encourage them to invest in the engagement.
To explore creative ideas and unusual interactions and

applying a strategic upstream approach can also be a
value added. Early interactions, such as spontaneous
coffee chats at conferences, are potential opportunities to
get a better sense of what the private sector entity wants • Developing leadership competencies: quick tips
and needs. Keeping an open mind and thinking outside • Four tips on how to best use the FAO Risk Management Toolkit
the box may even challenge the way private sector entities
are viewed ‒ not as part of the problem, but as part of the • Corpor ate communications, outreach and social media
solution. It may also be necessary to adopt new ways of • How to write SMART objectives
working and remain open-minded to new activities, as
• Leading productive one-on-one meetings
private sector entities may work at a different speed, with
a business mindset. • Developing core competencies: quick tips
Finally, use soft skills. When pursuing an engagement, treat

the entity with the care and consideration of a respected
partner or client. Negotiations always require a healthy
dose of emotional intelligence. Good communication
is at the heart of it; it is important to check in at regular
intervals rather than reach out only when a problem arises.
Building relations involves communicating successes as
well as roadblocks and challenges in the project early on,
actively listening to ensure all stakeholders voice their
contributions, with each encouraged to compromise
where appropriate.
You@FAO offers several soft skills and management

training courses. Click on a course in the box to learn
more. Supervisors/Heads of Office, Centre or Division can
provide advice or link up with FAO employees who have
equipped themselves with these skillsets.
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Section II.
Before you start –
areas for consideration prior
to engagement
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2.1 What to consider before you start and innovation, data and engagements associated with
the Hand-in-Hand (HIH) Initiative are new and emerging
areas of engagement.
When thinking about engaging with a private sector entity,
it is important to first consider the areas that impact The statistics also indicate that, more recently, there has
the feasibility, value and sustainability of the proposed been a significant increase in the submission of proposed
engagement (see Figure 3). formal engagement requests from the decentralized
offices, demonstrating FAO’s commitment to more
FIGURE 3. AREAS FOR CONSIDERATION dynamic, strategic and transformative partnerships that
are more balanced in terms of geographical coverage and
types of private sector entity.
In future, a greater focus on engagement with the private

sector in small island developing states (SIDS) and
through the HIH Initiative are deemed crucial, in line with
the Private Sector Strategy, as is the need to engage with
private sector entities that more clearly contribute to
FAO’s Strategic Framework 2022‒2031 and set of Priority
Programme Areas (PPAs). The following subsection
highlights these particular needs.
For more detailed information and up-to-date private

sector statistics, please visit the CONNECT portal.
2.3 Programme Fit

All engagements should align with and support FAO’s
Strategic Framework, Regional Initiatives, CPFs and
the UNSDCF. Engagements should be linked to PPAs
under the “four betters” (see Figure 4) and contribute
2.2 Private Sector Strategy Fit to achieving regional and national priorities, as well as
the SDGs. While this Guide is formulated as a general
Engagements are expected to align with FAO’s vision, goals overview spanning all potential cases (within and outside
and overall approach to the private sector, as outlined in the projects), it is important to note that in the case of
FAO Strategy for Private Sector Engagement (2021-2025). projects, the procedures described in the FAO Guide to
the Project Cycle must be applied.
When developing an engagement, priority areas for
partnering with the private sector should be taken into It is important that anyone initiating private sector
account, as well as emerging structures of engagement engagement, under the oversight of their Head of
with the private sector, such as innovation, data sharing Office, Centre or Division, consider how the proposed
and dissemination, support for financing and investment, engagement demonstrates a clear programme fit, see
SDG alignment and SDG advocacy. Figure 4.
Landscape of FAO’s private sector engagements For the specific priorities and initiatives by region, please
visit the regional office websites:
At the time of writing, FAO’s private sector engagements
are largely skewed towards European-based private sector • Regional Initiatives for Europe and Central Asia
entities and private sector associations, multinationals (REU)
and large companies. While the number of MSMEs is
increasing, they still account for a small portion of all
• Regional Initiatives for Asia and the Pacific (RAP)
private sector engagements. • Regional Initiatives for Latin America and the
Caribbean (RLC)
All engagements to date contribute to at least one
major FAO-related SDG, namely, SDG1 – rural poverty
• Regional Initiatives for Africa (RAF)
reduction, SDG 2 – zero hunger or SDG 12 – responsible • Regional Initiatives for Near East and North Africa
consumption and production. Engagements have (RNE)
been varied, with the most common being for capacity
development, value-chain development and food loss and
waste. The promotion of financial investment, technology
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FIGURE 4: STRATEGIC ALIGNMENT WITH PROGRAMMATIC AREAS AND REGIONAL AND COUNTRY-LEVEL PRIORITIES
Ensure strategic alignment with FAO-wide programmatic areas,

as well as regional and country-level frameworks
FAO-wide programmatic areas
Better Better Better

production nutrition environment Better life
Innovation for sustainable Healthy diets for all Climate change mitigating and Gender equality and rural
agriculture production adapted agri-food systems women’s empowerment
Nutrition for the most
Blue transformation vulnerable Bioeconomy for sustainable food Inclusive rural transformation
One health Safe food for everyone and agriculture
Agriculture and food emergencies
Small-scale producers’ Reducing food loss and waste Biodiversity and ecosystem Resilient agri-food systems
equitable access to resources services for food and agriculture
Transparent markets and trade Hand-in-Hand (HIH) initiative
Digital agriculture Achieving sustainable urban food
systems Scaling up investment
Regional and country-level
Regional priorities
Regional Initiatives for Europe and Central Asia (REU);
Regional Initiatives for Asia and the Pacific (RAP);
priorities
Regional Initiatives for Latin America and the Caribbean (RLC);

Regional Initiatives for Africa (RAF);
Regional Initiatives for Near East and North Africa (RNE)
Country Programming Framework
Worldwide Offices | FAO | Food and Agriculture Organization of the United Nations
2.4 Modalities/types of engagement FAO’s due diligence process examines these elements
in more detail. For more details on the due diligence
process, please also refer to the Due Diligence Framework
Engagements can be formal or informal; FAO encourages
for Risk Assessment and Management of Engagements
a wide range of engagement types that may not need to
(FRAME). These principles are set out in Figure 5 and
be formalized. For more information on the different types
must be reviewed to ensure the proposed entity is
of engagement available, see Section 3.2.2.
compliant. These principles must be taken into account
before and during the engagement to ensure compliance
throughout. Please see Figure 6 for the United Nations
2.5 Principles of engagement Global Compact Principles.
FAO’s engagement with private sector partners should

be guided by a commitment to FAO and United Nations
values, as outlined in detail in Section 3: Principles
forengagements for private sector engagements.
While FAO’s due diligence process examines these

elements more in detail, it is vital that any Contact Lead
ensures the engagement follows the Organization’s
principles for engagement, the FAO Exclusionary
Areas and High-Risk Sectors in an Operational Context
(Common Criteria) and the 10 Principles of the United
Nations Global Compact.
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FIGURE 5. OVERVIEW OF PRINCIPLES OF ENGAGEMENT

What we do What we don’t do
Principles of engagement: We never work with companies:
• demonstrate a clear contribution to the attainment of the
SDGs; • whose core business is tobacco, gambling (except lottery) or
pornography;
• respect the values of FAO and the United Nations;
• that are involved in human rights abuses; tolerate forced or
• not compromise (or appear to compromise) FAO’s
compulsory labor or the use of child labor;
neutrality, impartiality, integrity, independence, credibility or
reputation; • demonstrate a systematic failure to meet the principles of
the United Nations;
• be effectively managed and avoid any conflicts of interest or
other risks for FAO; • do not align with the UN Global Compact Exclusionary
Criteria (including companies which are subject to UN
• demonstrate a contribution to FAO’s mandate, goals and
Sanctions; listed on the United Nations Ineligibility List4;
mission, and the national development goals of its Members;
derive revenues from the production, sale and/or transfer of
• respect the intergovernmental nature of FAO and the antipersonnel landmines or cluster bombs).
decision-making authority of its Members, as set out in FAO’s
constitution; We may work with, but face high risks when engaging with the
• support and enhance, without compromise, the neutral and following sectors:
independent scientific and evidence-based approach that
underpins FAO’s work; • oil and gas, metals and mining
• protect FAO from any undue influence, especially on • large-scale agriculture and fishing
processes for setting and applying policies, norms and • large infrastructure, utilities
standards; • alcohol, fast food, and sugar-sweetened beverages
• be conducted based on transparency, openness, • chemicals, genetically modified organisms.
inclusiveness, accountability, integrity and mutual respect;
• maximize local-level development impact and beneficiaries,
particularly the smallholder farmers and their associations,
as well as youth and women, respecting the principles of
“leave no one behind” and “do no harm”.
FIGURE 6: THE UNITED NATIONS GLOBAL COMPACT PRINCIPLES 2.6 Impact

Businesses should:
FAO’s private sector engagement aims to bring about
HUMAN RIGHTS positive change and innovation, as well as measurable,
Support
pp and respect
p the pprotection of sustainable impact and benefits. Private sector
internationally proclaimed human rights
engagements must have the potential to deliver clear
Make sure that they are not complicit in human results that can be scaled up at country, regional or
rights abuses
global level. FAO prioritizes engagements that benefit
LABOUR smallholder farmers, MSMEs, women and youth. The
Uphold
p the freedom of association and the effective centrality of principle-based, purpose-driven partnerships
recognition of the right to collective bargaining. is spelled out in SDG 17: Partnerships for the goals.
Support
pp the elimination of all forms of forced and
compulsory labour.
Support the effective abolition of child labour.
Support
ppp the elimination of discrimination in respect of
employment and occupation.
Section 2
CHECK!
ENVIRONMENT
Support
pp a pprecautionaryy approach
p to The Contact Lead, under the direct supervision
environmental challenges. of his/her Head of Office, Centre or Division,
Undertake initiatives to ppromote greater can move forward with the private sector
environmental responsibility. contact if the entity and the prospective engagement have been
Encourage
g the development
p and diffusion of evaluated against the key areas for consideration.
environmentally friendly technologies.
Before pursuing contact, the Contact Lead is encouraged to
ANTI-CORRUPTION confirm any engagement with the relevant Head of Office, Centre
Work against
g corruption
p in all its forms, including or Division and to ensure a PSU Partnership Officer and or Regional
extortion and bribery. Partnership Officer is notified of the possible engagement.
4 The Ineligibility List is a central roster, hosted and maintained confidentially by the United Nations Global Marketplace (UNGM) as a protected electronic document that
aggregates information provided by each participating entity, including FAO. Vendors that are subject to sanctions that affect their eligibility, pursuant to sanctions
proceedings, shall be entered into the Ineligibility List for a term starting upon notification of decision and ending once they are deemed to be rehabilitated. The
Ineligibility List is subject to restricted access and is not be published or otherwise distributed.
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Practical Guide
Section III.
How to approach the private-
sector engagement cycle
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3.1 Introduction 3.2 Overview of the FAO private sector

This section focuses on the six-step private sector engagement cycle
engagement cycle, beginning with an overview of
the different types of engagement and corresponding This Guide sets out a spectrum of engagements. Once an
tracks for the person initiating contact, which is known engagement type has been selected, the user is guided
in the engagement cycle as the Contact Lead. They will through the process they must follow. Figure 7 gives
need to work closely with their Head of Office, Centre or an overview of the six steps in the FAO private sector
Division and may then be designated as a fully fledged engagement cycle.
Partnership Manager if and when the engagement
becomes formalized through a partnership agreement. It should be noted that the private sector engagement
The Contact Lead will have to work closely with other FAO cycle provides generic guidance on informal and
actors (PSU, PSS, OCC, LEG, Regional Focal Points, etc.) formal engagements. When it comes to private sector
involved in the engagement process, depending on the engagement in the context of an FAO project, all steps
level and type of engagement foreseen. of the project cycle (see FAO Guide to the Project Cycle)
should be followed as well.
The extent and tasks required vary based on the
characteristics of the engagement. For practical purposes,
this Guide classifies the types of engagement principally
into two tracks to better delineate the requirements for
each: informal and formal.
FIGURE 7. OVERVIEW OF THE FAO PRIVATE SECTOR ENGAGEMENT CYCLE
Private Sector
Strategy fit
Impact Programme fit
Principles of Modalities of
engagement engagement
Step Step Step Step Step Step

1 2 3 4 5 6
Engagement Due diligence and Negotiation and Implementation,

Clearances and Reporting and
Identification and risk assessment development of monitoring and
Approvals communicating results
Initiation /management agreement evaluation
3.2.1 Identifying the engagement type 3.2.2 Spectrum of private sector engagement
Opportunities for engagement can arise in a variety of All engagements tend to start informally (for example,
ways. The opportunity can be unforeseen, such as at a with talks, discussions or an email exchange) and they
networking event, or more targeted, for example, through may remain informal. However, as the engagement
an official request from an interested private sector progresses, its characteristics may evolve. Hence, it
entity. However, if the opportunity arises, it is important is up to the Contact Lead to recognize when it may be
that the Contact Lead understands the different types of necessary to re-classify the engagement.
engagement that FAO can pursue with the private sector,
so as to identify which process pathway is most suitable Figure 8 outlines the possible spectrum of engagement,
for the opportunity at hand. Characterization of the type from informal to formal, and labels overarching categories,
of engagement will determine the workflow to follow from a simple contact to a fully fledged partner. FAO
throughout the engagement. employees should use the below diagram to classify their
engagement by category and identify the corresponding
process to follow as they begin the engagement process.
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FIGURE 8. SPECTRUM OF PRIVATE SECTOR ENGAGEMENT
CONTACTS
Informal discussions
PARTICIPANT/
CO-ORGANIZER
(both as FAO or as the
Private Sector)*
PROSPECTS
Participation in events
Co-publications**
Agreement type:
Co-organization of events Letter of Intent (LOI)
Co-sponsorship PARTNER
Partners
Agreement type:
Memorandum of Understanding (MoU)
and similar agreements
Consortium partners
Agreement type:
Consortium-related agreements
Implementing partners
Agreement type:
Implementation/Cooperation Agreement
Resource partners
Financial contributors
Agreement type:
Contribution Agreement
In-kind contributors
Agreement type:
In-kind Contribution Agreement
SUPPLIER Separate process refer to FAO Handbook *The following may take place outside of or within formal partnerships
OPIM OPIM Handbook and Manual Section 701 **This generally involves a signed agreement but is not the same as a partnership
Supplier Operational Partnerships Implementation

To establish an engagement with a supplier, please follow
Modality (OPIM)
specific procurement procedures in the relevant FAO To establish an engagement through OPIM, please
Handbook section. follow specific procedures in the relevant FAO Handbook
section and the FAO Project Cycle Handbook.
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3.3 The engagement cycle ‒ step by step
3.3.1 Informal engagement

All private sector engagements begin as informal and many remain so without ever becoming formal partnerships.
Ninety percent of FAO’s current engagements with the private sector are categorized as informal: these may include
informal discussions or talks, the co-organization of events and participation in meetings and webinars, among other
things. Generally, for these types of informal engagements, there are no formal contractual arrangements or legal
agreements signed between FAO and a given private sector entity. However, such engagements are just as valuable to
FAO’s work and can have just as much impact.
If there is already a formal partnership agreement in place with the private sector entity, the following steps may not
apply, as interactions with the entity may already be covered by the due diligence and provisions of the agreement.
Please confirm with the PSU/Regional Partnership Officer.
The categories are as follows:

Contacts Contacts
Tanvi meets the sustainability advisor of a local renewable
an initial engagement resulting from an informal meeting or energy company at a reception. She mentions the company’s
initial expression of interest from a private sector entity. work on the use and transformation of agricultural waste
supplied by local smallholder farmers as a source of energy and
Participants income for them. Tanvi finds the company’s work interesting and
thinks it would be worth looking into. They exchange business
cards. She then briefs relevant colleagues on the encounter and
engaged in events including meetings, presentations, multi- emails the Regional Partnership Officer for information.
stakeholder platforms, seminars, technical and expert
workshops. A participant can be an FAO participant or a
private sector participant.5 For FAO participants, this implies that FAO is participating in external events
where the private sector is also participating. For private sector participants, this implies that the private
sector is participating in an FAO event. There are additional steps if there is logo use, as will be described,
or if there are co-publications.
FIGURE 9. INFORMAL ENGAGEMENTS AT A GLANCE
Engagement Due diligence and Negotiation and Implementation, Reporting and

Clearances and
identification risk assessment/ development of monitoring and communicating
approvals
and initiation management* informal agreement evaluation results
CONTACTS
• Initiate contact
• Notify PSU Partnership
Officer, for headquarters,
or Regional Partnership
CONTACT
Officer, for regional and

country offices
FAO PARTICIPANT
• Initiate contact Communicate
• Request and receive
endorsement by Head of
updates on the
CONNECT
PARTICIPANTS/Co-organizer
Office, Center or Division

• Notify PSU Partnership Portal via PSU
with no brand/no logo use
Officer, for headquarters,

or Regional Partnership
Officer, for regional and
country offices PRIVATE
SECTOR PARTICIPANT
PARTICIPANT
endorsement by FAO
Organizer of the event
• Notify PSU Partnership • Request and receive
Officer, for headquarters, final approval from
or Regional Partnership Head of the Proposing
Officer, for regional and Unit
country offices
*For informal
* For informal engagements,
engagements, thethe
duedue diligence
diligence risk assessment
risk assessment and
and simple simple reputational
reputational risk
risk assessment assessment
is only is only required
required if visibility if use)
(brand/logo visibility (brand/logo use) is envisaged.
is envisaged.
5 Participation/co-organization, be it FAO or private sector, may take place outside or within a formal partnership.
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Practical Guide

Clearances and
identification risk assessment/ development of monitoring and communicating
approvals
and initiation management agreement evaluation results
• Submit a duly filled Request Form for

Simple Reputational Risk Assessment • Request and receive required
If logo use
for FAO’s Participation in Events with guidance from OCC based on FAO
confirmation of Private the Private Sector to PSS at Logo Policy and Guidelines regarding
Sector Strategy Fit FAO-Engagements@fao.org copying logo placement
PSU at PSU-Director@fao.org • Request and receive clearances from
from PSU by Email LEG, if required
• Receive the simple reputational risk
assessment results
• Based on the results provided,
proceed as advised
Communicate
Simple Reputational Risk Assessment
for FAO’s Participation in Events with
If co-publication

updates on
the Private Sector to PSS at • Follow the OCC process • Request and receive required
confirmation of Private FAO-Engagements@fao.org copying clearances from PSU and OCC
for copublications (FAO
Sector Strategy Fit
from PSU by Email
PSU at PSU-Director@fao.org
• Inform PSU by Email
Logo Policy and Guidelines
(via PWS in line with FAO Logo Policy
and Guidelines on logo placement) the CONNECT
• Request and receive the simple
on logo placement)
Portal via PSU
reputational risk assessment results
from PSS
• Follow OCC process for
copublications (FAO Logo Policy and
Guidelines regarding logo placement)

co-sponsorship*
If co-organizer
• Request and receive Simple Reputational Risk Assessment

confirmation of Private for FAO’s Participation in Events with
the Private Sector to PSS at • Request and receive required
Sector Strategy Fit FAO-Engagements@fao.org copying clearances
from PSU by Email PSU at PSU-Director@fao.org • Follow FAO Logo Policy and
• Receive the simple reputational risk Guidelines regarding logo placement
assessment results
• Request and receive endorsement
from line A or ADG/RR for country
offices
* Co-organization or co-sponsorship
* Co-organization or co-sponsorship of events
of events with umbrella with
organizations umbrella
are considered organizations
formal engagements and needare considered
to follow formal
the process under FRAME. engagements and need to follow the process under FRAME.
Kindly refer to the explanatory
Kindly refer to the explanatory box on umbrella organizations under Step 2 co-organization/co-sponsorship of events.
box on umbrella organizations under Step 2 co-organization/co-sponsorship of events.
For a workflow visual of the entire process please follow this link.
Step 1 Any Contact Lead needs the go-ahead from their

supervisor, who is usually their Head of Office, Centre or
Engagement identification and initiation Division. Once the go-ahead has been received, contact
can be pursued with the prospective entity through
The tasks in Step 1 are minimal, but vary depending on the informal talks, meetings, dialogue and outreach to explore
informal engagement type: contact, participant, whether opportunities for collaboration.
there is logo use or joint publications, whether there
is a co-organizer or co-sponsorship. The tasks in Step It is important that any exchanges with the private sector
1 serve as a means for the Contact Lead to brainstorm entity at this stage clarify that the contact is merely
the potential engagement with their supervisor, Head of exploratory in nature and that there is no commitment by
Office, Centre or Division and notify the PSU Partnership FAO to continue with the proposed collaboration.
Officer/Regional Partnership Officer.
If the engagement is no more than an initial contact,
the Contact Lead may proceed to Step 2. Note that FAO
Contacts cannot give its patronage to commercial entities under
any circumstances.
Roles involved at this step:

Contacts
A private-sector company based in Korea has
requested a meeting with Chris, a local FAO
staff member, to discuss opportunities for a
partnership with FAO. Chris has briefed the
FAOR of this potential opportunity to engage
Actions involved at this step: and she has not objected, as the company
operates in an area of interest to FAO. Chris
Initiate contact e-mails the RAP Regional Partnerships Officer
and informs him of this contact. Chris goes
ahead and holds an initial meeting with the
Notify PSU Partnership Officer, for headquarters,
entity to understand their interest in and
or Regional Partnership Officer, for regional and
motivation for collaborating with FAO.
country offices
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Practical Guide
Participants Private sector participant

A private sector entity is engaged in an FAO event,
FAO participant multi-stakeholder platform or presentation, without
FAO is engaged informally in an event, multi- signing a formal agreement.
stakeholder platform or presentation.
Actions involved at this step:

Initiate contact
Initiate contact
Request and receive endorsement by
Request and receive endorsement by the the FAO Organizer of the event
Head of Office, Centre or Division
Notify PSU Partnership Officer, for
Notify PSU Partnership Officer, for headquarters, or Regional Partnership Officer,
headquarters, or Regional Partnership Officer, for regional and country offices
for regional and country offices
If logo use
FAO Participants Roles involved at this step:
Tarik, the Agribusiness Officer for FAO Chile, has been invited
to participate on behalf of FAO in a virtual dialogue series
organized by a national industry association. He has also been
invited to speak in one of the sessions.
Before confirming his participation, Tarik requests

endorsement by his Head of Office. Once he receives their
approval, he sends an email to the RLC Regional Partnerships
Officer to inform her of the invitation to speak in the dialogue
series. The Regional Officer does not raise any flags and,
In addition to the above steps described,
because the Head of Office has already endorsed and approved
Tarik’s participation, Tarik goes ahead and participates and request and receive confirmation of Private
speaks at the event. Sector Strategy Fit from PSU
The use of the FAO logo (or FAO’s name/brand) signifies

or can lead to perception that FAO is in some way
endorsing or supporting the private sector entity, its
products, or the activities involved. Before the FAO logo
is used for informal engagements, a logo proposal must
PS participant
Jorge’s division is organizing a multistakeholder global conference on the application of the International Code of Conduct for the Sustainable Use and
Management of Fertilizers.
Jorge has drafted a proposed list of participants and speakers, including entities operating in the fertilizer industry, an FAO sensitive area. Jorge’s
Division Director has no objection to the proposed list and confirms this in writing. Jorge notifies PSU. As some of the proposed panellists and
participants operate in an FAO sensitive area, PSU recommends a reputational risk assessment. Jorge immediately emails PSS-DueDiligence@fao.org,
with PSU-director@fao.org in copy, requesting that the assessment be conducted. As soon as Jorge receives the assessment results, he informs his
Division Director for final approval and clearance for the invitations to be sent out.
NB: Jorge’s Division Director may decide to go ahead with the invitations and participants even in cases where the reputational risk assessment
has been classified as high, because of the multi-stakeholder nature and thematic focus of the conference. Jorge will need to implement mitigation
measures where reputational risks are considered medium or high.
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be examined by additional FAO actors and must comply

with the guidance provided in OCC’s Logo Policy and
If co-organization/co-sponsorship
Guidelines. The logo use process may be executed in Roles involved at this step:
isolation for established partnerships, but when FAO
logo use is requested as part of the initial engagement
process, the Contact Lead must also follow the steps
for logo placement. The only exemption under which
the logo use process does not need to be completed is
if the logo is used solely in a PowerPoint presentation by
FAO employees. In all other logo use cases, the Contact
Lead must fill in the OCC Assessment Form including Actions involved at this step:
confirmation of Private Sector Strategy Fit. For advice on
the procedures for logo use, personnel can also contact In addition to the above steps described,
Logo@fao.org, in line with the revised FAO Logo Policy and request and receive confirmation of Private
Guidelines. Sector Strategy Fit from PSU
If co-publication
Co-sponsorship or
co-organization
Entails FAO’s active participation and responsibilities for the event.
FAO may co-sponsor meetings, conferences, seminars, training
courses, exhibitions and other events with external partners.
Actions involved at this step: Co-organization

In addition to the above steps described, FAO provided technical support to Pinduoduo, an e-commerce
company in China, for the co-organization of the Smart Agriculture
request and receive confirmation of Private
Competition 2020 on artificial intelligence (AI) technologies for
Sector Strategy Fit from PSU strawberry plantations. The communication materials for this
event also featured the logos of all parties involved.
All co-publications must be cleared by OCC before they
are released to the public. Publication clearance is a
separate process that takes place in addition to the review In cases where FAO wishes to limit its involvement, the
process specific to the engagement. All FAO publications Organization may nevertheless cooperate with
must be entered into the Publications Workflow System organizers of events within the area of its technical
(PWS) by the Contact Lead. The PWS is a corporate tool expertise, normally without committing financial
that streamlines publishing planning, production and resources. Such cooperation may be acknowledged in
dissemination and publications will be cleared by OCC the following terms: “with the technical cooperation of”
and ultimately published in the FAO Document Repository. or “with the technical support of”. The use of the word
A co-publishing agreement may also be required for “technical” is particularly advisable when cooperating
substantial joint publications (co-publishing agreements
with participants from the private sector.
are not required for factsheets, flyers, brochures, etc.).
FAO should also hold copyright over material published
by staff in scientific journals, at least when an FAO Step 2
employee is the lead or corresponding author.
Due diligence and risk assessment/management
The first step in executing a co-publishing agreement is
to create a record in the PWS system. The PWS record For informal engagements, PSS conducts a simple
will be reviewed by OCC. If a co-publishing agreement is reputational risk assessment on the private sector
required, the Contact Lead and the Head of the Proposing entity involved only when visibility (brand/logo use) is
Unit will receive a notice from the PWS system with the envisaged, as this may lead to FAO’s perceived association
appropriate steps to be followed at that time. with the private sector and potential reputational risks.
Licensing agreements for articles published in scientific There are no tasks required under Step 2 for Contacts,
journals are managed separately and do not go through Participants, including FAO Participants and Private
PWS. The Contact Lead should email Copyright@fao.org. Sector Participants with no visibility (no brand/no
logo use). The Contact Lead may proceed directly to
Step 6: Reporting and Communicating Results.
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Participants Unit/Formulator will receive a notice from the PWS

system with the appropriate steps to be followed at that
time.
If logo use
Licensing agreements for articles published in scientific
journals are managed separately and do not go through
Roles involved at this step: PWS. The Contact Lead should email Copyright@fao.org.
Collaborations on FAO publications require the FAO

Contact Lead to consult PSS on screening the relevant
entity to assess risks6. The Contact Lead should upload
the results of this screening on behalf of the Head of
the Proposing Unit/Formulator to the PWS record for
Actions involved at this step: clearance of the publication from OCC
Submit a duly filled Request Form for If co-organization/co-sponsorship

for FAO’s Participation in Events with the Roles involved at this step:
Private Sector to PSS copying PSU
Receive the simple reputational risk

assessment results
Based on the results provided, proceed

as advised
Submit a duly filled Request Form for

If co-publication for FAO’s Participation in Events with the
Private Sector to PSS copying PSU
Receive the simple reputational risk

assessment results
Request and receive endorsement from line

A or ADG/RR for country offices
Submit a duly filled Request Form for
Simple Reputational Risk Assessment As already emphasized, placement of the logo on
for FAO’s Participation in Events with the promotional products must comply with the guidance set
Private Sector to PSS copying PSU out in the FAO Logo Policy and Guidelines.
Inform PSU
Request and receive the simple reputational

risk assessment results from PSS
Follow OCC process for co-publications

(FAO Logo Policy and Guidelines on logo
placement)
The first step in executing a co-publishing agreement is to

create a record in the PWS system. The PWS record will
be reviewed by OCC. If a co-publishing agreement is
required, the Contact Lead and the Head of the Proposing
6 PSS screening is not needed for established commercial co-publishers, such as Springer or Elsevier (please insert relevant source).
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Case study Note

Co-organization of Event with the • DD Brand/Logo Request Form to be submitted
private sector one month before the event date
Yasmine, a Programme Officer at FAO Morocco • Request form to include clear indication of the
has been contacted by a large food company private-sector entities involved
‘’Good Food’’ for collaboration on food loss and
waste reduction. The company has expressed an FAO Logo Policy and Guidelines, p.13
interest in co-organizing an event with FAO that
would help raise awareness on the importance of
food loss and waste reduction. Yasmine thinks it
is a great opportunity to engage with the private
sector to reach out to multiple stakeholders and
promote more sustainable practices.
Co-organization/co-
As the first step, Yasmine speaks with the head
of her Office - FAOR Morocco- and gets his/her
sponsorship of events with
written endorsement for this engagement. Then
Yasmine fills in the Assessment Form to request
Umbrella Organizations
the private sector strategic fit explaining the involving the private sector
objective of the event, roles and responsibilities
of both FAO and the company as well as the
target audience of the event. As Yasmine would According to AC 2022/11, events co-organized or (co-)
like to produce with the company some joint sponsored with an umbrella organization serving the
promotional materials on food loss and waste common interests of its multiple associated members,
and distribute them during the event, she also including private-sector entities, will be considered
explains in the form that promotional materials formal engagements and will therefore follow the
would feature both FAO and company’s logos. process under the Framework for Due Diligence and Risk
FAO Morocco sends the assessment form to PSU, Assessment/Management for Engagements (FRAME),
which reviews it and confirms the strategic fit. including a review and decision by the Engagements
and Partnerships Committee (EPC), as required.
Upon receiving the confirmation of strategic fit
from PSU, Yasmine fills in the Request Form for Umbrella organizations include multi-stakeholder
Simple ESG Reputational Risk Assessment, which associations/coalitions/networks/alliances of entities,
FAO Morocco sends to PSS. After receiving PSS including private sector, which coordinate the activities
screening results with identified reputational of their member organizations to protect or promote
risks, FAO Morocco sends them alongside the their shared interests.
assessment form to the ADG/RR for the Near
East and North Africa who has to provide a final When planning to co-organize or co-sponsor complex
approval. After considering risks and benefits events with umbrella organizations, the regular due
for this engagement, ADG/RR approves the co- diligence process applies. The complexity of the
organization of the event and communicates his involvement of FAO with the private sector entities
final decision to FAO Morocco, also copying the included in umbrella organizations, especially in
Director of Cabinet. high-visibility events where FAO logo and role would
be prominent, may be as such as to consider such
Yasmine and FAO Morocco can now proceed with events formal engagements. They may also entail
the organization of the event with the company, reputational risks that warrant a full due diligence
also ensuring that FAO Logo Policy and Guidelines review. For this reason, the full regular process under
are followed for the use of the FAO’s logo on the FRAME is to be followed.
promotional materials for the event.
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Step 3 Participants
Negotiation and development of informal Private sector participant
agreements Roles involved at this step:
For all informal engagements other than co-publication,
there are no tasks required in Step 3. The Contact Lead
may proceed to Step 4: Clearances and approvals.
Participants
If co-publication
Request and receive final approval from Head of
Roles involved at this step: the Head of the Proposing Unit/Formulator
For private sector participants in an FAO event, the Head

of the Head of the Proposing Unit/Formulator will make
the final decision on participation based on inputs from
PSU and PSS.
Actions involved at this step: If logo use

Follow the OCC process for co-publications Roles involved at this step:
(FAO Logo Policy and Guidelines on logo
placement)
The terms of the co-publishing agreement (including logo

usage) apply only to the publications that are listed in the
agreement.
Step 4 Request and receive required guidance from
Clearances and approvals OCC based on FAO Logo Policy and Guidelines
on logo placement
The Contact Lead must perform the tasks in Step 4 for
participation in events, logo use, co-publications, co- Request and receive clearances from LEG,
organization and co-sponsorship. They include the receipt if required
of necessary clearances and approvals from relevant FAO
entities in order for the Contact Lead to move forward
with the engagement.
Note, too, that the placement of the logo must comply

If co-publication
with the FAO Logo Policy and Guidelines.

Request and receive required clearances from
PSU and OCC (via PWS in line with FAO Logo
Policy and Guidelines on logo placement
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Practical Guide
If co-organization/co-sponsorship to work more successfully with the private sector in new

engagements. Documenting informal contacts with the
private sector on the CONNECT portal will be fully
Roles involved at this step: functional when the CRM system is in place. Showcasing
success stories from informal engagement is also key.
For informal engagements with contacts and participants,

the Contact Lead is encouraged to report on any follow-
up actions to their Head of Office, Centre or Division and
to report results and any lessons learned to assess the
ongoing value of the relationship.
Request and receive required clearances
Follow FAO Logo Policy and Guidelines on

logo placement
The Director of Cabinet (Director-of-Cabinet@fao.org)

shall be copied in the email granting final approval to all
events falling under the Administrative Circular 2022/11.
Step 5
Implementation, monitoring and evaluation
Informal engagement types require no tasks to be carried
out in Step 5. The Contact Lead may proceed to Step 6:
Reporting and communicating results.
Step 6
Reporting and communicating results

Communicate updates on the CONNECT Portal
via PSU
The Contact Lead should report any activities and

document results on the CONNECT portal. As noted, the
CONNECT portal serves as a repository for all aspects of
FAO’s work with the private sector. Recording details of
informal engagements will provide other FAO employees
with a historical record of FAO’s interactions with private
sector entities and offer lessons learned and best
practices from past informal engagements, helping FAO
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Practical Guide
3.3.2 Formal engagement

As noted, 90 percent of FAO engagements are informal and, before formalizing a partnership, it is important to weigh
the costs and the benefits involved. All formal engagements result in a legal agreement, such as a memorandum of
understanding (MoU) or similar type of agreement. Formal engagements have a specified length (usually three to five
years) and tend to have high visibility. Any reputational risks are carefully screened through the FAO due diligence
process (FRAME) and plans are put in place to mitigate them. All formal engagements involve all six steps of the private
sector engagement process, with some variations depending on whether the engagement is one of two main types:
prospect or partner. Partnership with the private sector is a usually a long-term formalized collaboration between FAO
and a private sector entity to achieve a common purpose in one or several thematic areas of mutual interest and to
share responsibilities, resources, competencies and benefits. Depending on the chosen legal instrument, FAO engages
with different types of partners, including implementing partners, consortia and resource partners with a financial or
in-kind contribution.
Please note, engagements in the context of projects need to follow project-cycle steps and rules (see the FAO Guide to
the Project Cycle).
Categories are as follows:
Prospect Prospect
An entity that expresses an intention to collaborate with FAO, FAO signed an LoI with the World Economic Forum (WEF)
but has not yet identified concrete activities. The letter of to explore collaboration in several areas of common
intent (LoI) is the appropriate instrument to formalize such interest such as enhancing public-private sector
prospective engagements. A prospect engages with FAO to dialogue for increased investment, engaging and leading
a data and digital coalition, and promoting work towards
explore collaboration on several broad thematic areas of
inclusive, efficient, sustainable and healthy agrifood
mutual interest with a view to signing a more comprehensive systems.
legal instrument in the future.
This LoI facilitated a discussion towards more concrete
Letters of Intent (LoIs) should be signed on an exceptional engagement opportunities, especially through
basis, for example, as an initial engagement step for high- digitalization initiatives and digital data alliances, and so
potential partnerships that may require significant time FAO is exploring possibilities to sign an MoU with WEF in
to formalize. The overall objective of an LoI is to record an the near future.
intention to engage in one or several areas of mutual interest
and facilitate a discussion to explore opportunities and
appropriate modalities for such engagement.
LoIs do not create legal, financial or other commitments for any of the parties. Accordingly, joint activities,
such as project implementation, should NOT take place based solely on an LoI.
If discussion on the areas of mutual interest identified in the LoI progresses well and both parties are
committed to moving forward to carry out concrete activities, a legally binding agreement, such as a
Memorandum of Understanding, a financial contribution agreement, or a similar legal instrument, should be
negotiated and concluded prior to any such activities commencing.
The LoI should include a time period within which the discussions on potential areas of engagement are to
take place. If discussions are not concluded within that time period, the LoI will be considered to be obsolete.
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Practical Guide
Partner Partner
An entity that enters into a formal partnership In partnership with the Federación Latinoamericana de Mercados
agreement with FAO and signs a general framework de Abastecimiento (FLAMA), FAO works to strengthen the
agreement such as an MoU, agreeing to implement management models of wholesale markets in the Latin American
region by developing and disseminating good practices in the
specific joint activities in one or several broad areas
areas of inclusive trade and the reduction of food loss and
of common interest (developed in a workplan).
waste. This partnership is formalized through a Memorandum of
Forms of partnership may differ, including Understanding, which sets a general framework for FAO-FLAMA
collaboration or implementing partners, consortia collaboration in multiple areas of interest in Latin America and
and resources partners (with financial or in-kind the Caribbean countries. The agreement also contains a workplan,
contributions), some of which may take place in the where roles, responsibilities, joint activities and timeframe for
context of ongoing or new projects. the implementation of the agreement are defined.
FIGURE 10.
FIGURE 10. PROSPECTIVE
PROSPECTIVE ENGAGEMENTS
ENGAGEMENTS AT
AT AA GLANCE
GLANCE

Clearances and
approvals
and initiation management formal agreement evaluation results
• Submit a Due Diligence

CONTACT
Request Form to PSS

with PSU in copy
• Initiate contact • Request and
• Receive the due receive clearance
• Develop a draft diligence screening and from the Head of
concept note risk assessment results the Proposing
Measure
PROSPECTS
from PSS
• Request and receive • Consult with
Unit/Formulator Communicate
endorsement from • If minimum risk, PSU/Regional • Request and progress of the updates on
proceed to step 3 Partnership Officer
the Head of the
Proposing • Negotiate and
receive required
clearances from: engagement the CONNECT
Unit/Formulator • If low risk, request PSS
to submit for EPC
develop an LoI PSU, line A and B portal via PSU
• Request and receive review/decision • Request and
confirmation of receive LEG
Private Sector • If medium or high risk, clearance and, if
PARTICIPANT
Strategy fit from develop an IBRMP, required, ODG

PSU which is submitted by clearance
PSS to EPC for review/
• Designate the decision • Once clearances
Partnership Manager received, proceed
• Receive and act upon with LoI signature
PSS notification on final
EPC decision
FIGURE 11. FORMAL ENGAGEMENTS AT A GLANCE

Clearances and
approvals
• Submit a Due
Diligence Request Form
to PSS with PSU in copy
• Receive the due diligence • Request and
• Develop a draft screening and risk receive clearance
concept note assessment results from from the Head of
the Proposing
Monitor
PSS
• Request and receive • Consult with Unit/Formulator progress Communicate
PARTNERS
endorsement from • If minimum risk, proceed

the Head of the to step 3
PSU/Regional
Partnership Officer
• Request and against agreed updates on
Proposing Unit/
• Negotiate and
receive required
clearances from: indicators and the CONNECT
Formulator • If low risk, request PSS to
submit for develop agreement PSU, line A and B
workplan portal via PSU
• Request and receive EPC review/decision and joint workplan
confirmation of • Request and
Private • If medium or receive LEG and
Sector Strategy Fit high risk, develop an ODG clearances
form PSU IBRMP, which is
submitted by PSS to EPC • Once clearances
• Designate for review/decision received, proceed
the Partnership with signature
Manager • Receive and act upon PSS
notification on final EPC
decision
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Practical Guide

Clearances and
approvals

• Initiate contact clearance from the Head
of the Proposing
If implementing partner
• Submit a Due
• Request and receive Unit/Formulator
Diligence Request • Consult with
confirmation of
Form to PSS with PSU/Regional • Request and receive
programmatic relevance • Monitor progress
PSU in copy Partnership Officer required clearances
from the Head of the against agreed
Proposing Unit/Formulator from PSU indicators and
• Receive the • Negotiate and develop
• Request and receive due diligence implementation/ • Receive clearance from workplan
confirmation of Private screening and risk cooperation agreement LEG, if required
Sector Strategy Fit from assessment
• Once clearances
PSU results from PSS
received, proceed with Communicate
• Designate the Partnership • If minimum
implementation/ updates on
Manager risk, proceed to step 3 cooperation agreement
signature the CONNECT
• If low risk, request portal via PSU
PSS to submit for • Request and receive
• Develop a draft concept EPC review/decision clearance from the Head
note of the Proposing • Monitor progress
• Request and receive • If medium or Unit/Formulator against agreed
If Consortia
endorsement of concept high risk, develop an indicators and

IBRMP, which is • Consult with • Request and receive workplan
note from the Head of required clearances
the Proposing submitted by PSS PSU/Regional
from: PSU, line A and B • Monitor the
Unit/Formulator to EPC for Partnership Officer
implementation
review/decision • Receive required
• Request and receive • Negotiate and develop of consortia
confirmation of Private clearance from LEG
• Receive and act upon consortium agreement agreement
Sector Strategy Fit from PSS notification on • Once clearances
PSU final EPC decision received, proceed with
• Designate the consortium agreement
Partnership Manager signature

Clearances and
approvals

• Establish the project clearance from the • Activate operation,
• Initiate contact • Submit a Due task force and enter the Head of the Proposing
Financial contribution
• Develop a draft concept Diligence Request project concept note implement and monitor Follow requirements on
Unit/Formulator in accordance with Trust reporting in line with the
note Form to PSS with PSR into FPMIS
• Request and receive in copy • Receive required clearances Fund requirements and FAO Guide on the Project
• Consult with FLO the FAO Guide to the Cycle and communicate
confirmation of Private in line with the FAO Guide
Sector strategy fit from • Receive the to the Project Cycle Project Cycle updates on
due diligence • Negotiate and develop
PSR contribution agreement the CONNECT portal
• Designate the Partnership screening and risk • Once clearances received, via PSU
Manager assessment proceed with contribution
• Develop project
If Resource Partners
• Request and receive a results from PSS documents in line with agreement signature by
review from FLO the FAO Guide to the DDG Partnerships and
• If minimum risk, Project Cycle Outreach
proceed to step 3
• If low risk, request • Request and receive

• Initiate contact PSS to submit for EPC
• Request and receive clearance from the Head
review/decision of the Proposing
endorsement of concept
note from the Head of • Consult with Unit/Formulator
• Monitor the
In-kind contribution
• If medium or
the Proposing high risk, develop an PSR/Regional • Request and receive implementation of Communicate
Unit/Formulator IBRMP, which is Partnership Officer clearances from relevant the contribution updates on
• Request and receive submitted by PSS to divisions, as required agreement the CONNECT
confirmation of Private • Negotiate and develop
EPC for • Receive required clearance portal via PSU
Sector strategy Fit from contribution agreement
review/decision from LEG
PSR supported by PSR/
• Designate the • Receive and act upon Regional Partnership • Once clearances received,
Partnership Manager PSS notification on Officer proceed with contribution
final EPC decision agreement signature by
DDG Partnerships and
Outreach
N.B. Please refer directly to PSR for financial contribution agreements and in-kind contribution agreements where philanthropic foundations are involved.
For the workflow visual of the entire process please follow the link.
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Practical Guide
Step 1 formal instrument (agreement type) is best suited to

the proposed engagement (see Step 3 for more details),
Engagement identification and initiation taking into account its strategic importance, duration and
scope, the nature of its activities, impact and whether the
engagement will include a financial or in-kind contribution.
Once the Partnership Manager and PSU Partnership
Officer/Regional Partnership Officer are designated,
they should support the Head of the Proposing Unit/
Formulator in obtaining confirmation of programmatic
relevance.
Please note that for cases where a concept note has been
Actions involved at this step: already prepared at the time of due diligence submission,
as the concept note involves programmatic endorsement
Initiate contact by the Head of the Proposing Unit/Formulator, this would
also serve as confirmation of programmatic relevance
Develop a draft concept note for due diligence purposes, hence no need for additional
documentation.
Request and receive endorsement from the
Head of the Proposing Unit/Formulator When the concept note is either not required or not yet
available at the time of due diligence submission (Step 2),
Request and receive confirmation of Private the confirmation of programmatic relevance by the Head
Sector Strategy Fit from PSU of the Proposing Unit/Formulator (under Administrative
Circular 2022/01, paragraph 7) is to be provided in writing
Designate the Partnership Manager to PSS.
Step 1 usually begins with the Contact Lead discussing

their interest in an engagement opportunity with their
Head of Office, Centre or Division, and preparing a draft
Concept Note in line with the requirements as set in the
Administrative Circular 2022/01. In the concept note, the
Strategic fit
Contact Lead should clearly communicate the areas of
mutual interest, potential benefits and added value of the Confirmation of Private Sector Strategy Fit is an important
proposed collaboration. requirement for all proposals for formal engagement with the
private sector, including MoUs, LoIs, financial contributions
The Contact Lead then confirms with their Head of Office, and other types of agreements.
Centre or Division that there is interest in developing
and implementing the engagement and that resources The strategy fit review is undertaken by PSU’s Strategy Fit
are available to do so. PSU should also be consulted at Panel, led by PSU Director. The goal of the panel is to examine
an early stage and may request the Contact Lead to fill the relevant elements of the proposed agreement and assess
in the Private Sector Strategy Fit form to assess whether its overall alignment with FAO Strategy for Private Sector
the proposal is in line with the FAO Strategy for Private Engagement.
Sector Engagement 2021-2025.
The panel meets weekly to assess all incoming proposals for
Once PSU has confirmed strategic relevance, the engagement with the private sector against a set of established
Contact Lead is then often designated by the Head criteria, such as the geographical scope of an intended
of the Proposing Unit/Formulator as the Partnership collaboration, its impacts and beneficiaries. Each criterion has
an assigned score; the final score of the proposal is calculated
Manager. The Partnership Manager provides day-to-day
based on the weighted average matrix.
coordination for the proposed partnership.
The route to formal partnership also involves PSU The panel pays particular attention to the linkages of the
proposal with FAO’s Strategic Framework, including the Four
assigning a PSU Partnership Officer or Regional
Betters and regional- and country-level priorities. The panel
Partnership Officer to support the Partnership prioritizes proposals with scalable impacts to small holder
Manager. Engagements led at FAO headquarters are farmers and other beneficiaries, and where activities are
assigned to a PSU Partnership Officer; engagements planned in countries that are most in need of FAO’s support.
led by decentralized offices are assigned to a Regional
Partnership Officer. The Partnership Manager is Only proposals which meet the threshold score can proceed to
encouraged to consult with their FAO Partnership Officer a formal agreement. After receiving confirmation of the private
(from PSU and/or Regional Officer) to get guidance sector strategy fit from PSU, the formulator can contact PSS to
on the processes and approach. The Partnership initiate due diligence.
Manager is responsible for assessing with PSU what
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Practical Guide
Once the Partnership Manager has completed Step 1 If implementing partner

of the engagement process, it is possible to proceed to
Step 2: Due diligence and risk assessment/ management.
Please note, in cases where the Formulation Funding
procedure is being used, refer to this link and contact the
project cycle inbox for guidance.
Partner
Manon would like to propose a 3–5 year strategic partnership Actions involved at this step:
between FAO and a financial institution aimed at promoting
investments and access to finance to small and medium Initiate contact
enterprises. Manon has been engaging with the entity
informally for a few years, and believes FAP has built a solid Request and receive confirmation of
relationship based on trust. The financial institution is very programmatic relevance from the Head of
much interested in undertaking joint work with FAO in this
the Proposing Unit/Formulator
area, as well as exploring other opportunities for joint work
in the areas of reducing climate change risks and promoting
nutrition sensitive value chains amongst targeted SMEs. Request and receive confirmation of Private
Manon thinks this could be an excellent opportunity for FAO Sector Strategy Fit from PSU
and would like to purpose and MoU for this type of engagement
as broad areas of collaboration are being explored for at least Designate the Partnership Manager
3 years.
As the designated FAO Contact Lead and Head of the Proposing An implementing partner is an entity with which
Unit for a potential partnership with a private sector entity, an engagement involves project implementation
Manon contacts PSU and requests confirmation of private activities. An Implementation agreement is signed for
sector strategic fit. As soon as she receives this confirmation, the joint implementation/coordination of the parties’
she designates an officer who will be the Technical Partnership respective activities under existing projects with no
Manager following the engagement.
transfer of funds. It may also serve as a “supplementary
agreement” for the implementation of activities falling
within the framework cooperation as foreseen by an
MoU signed between the parties.
Case study The strategic relevance of an implementation

Turning an interaction with agreement is defined by the needs of the specific
the private sector into a project, programme or initiative.
potential engagement Once the Partnership Manager has completed Step 1
John, a Programme Officer from the FAO Country of the engagement process it is possible to proceed to
Office in Kenya, attends a sustainable agriculture Step 2: Due diligence and risk assessment/management.
event and connects with a private sector company that
is seeking to provide financial loans to rural farmers
in Kenya. Support for farmers through investment
opportunities is one of the key priorities for the project
Implementing Partner
John is currently working on, so after the event, he Janani is an FAOR and her office is implementing a project aimed
develops a draft concept note which he discusses with at reducing food waste at country level. FAO would like to involve
the FAO Representative and the Partnership Officer some local private actors in the joint implementation of specific
in the Regional Office for Africa (RAF) proposing an advocacy activities which will be implemented within one year.
engagement with the company. No financial contributions are anticipated, and at this stage,
there have been no discussions for a longer term or broader
They agree to hold a meeting with the company to scope for engagement.
narrow down potential collaborative opportunities.
There appear to be several projects and areas of interest As soon as Janani establishes contact with one of the local
for engagement with the company, in accordance with companies and confirms their interest to be involved in the
the Strategic Framework and associated PPAs, and that project, she contacts PSU and request for confirmation of private
an MoU might be warranted. John, as Contact Lead, sector strategic fit. As soon as she receives this confirmation, as
contacts PSU for confirmation of alignment with the FAOR and Head of the Proposing Unit/Formulator she designates
Private Sector Strategy. The Kenya FAOR designates an officer who will be the Partnership Manager following
John as the Partnership Manager for the potential the engagement. Because Janini is the FAOR, she confirms
partnership agreement, in this case, an MoU. programmatic relevance. Janini has completed this step.
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Practical Guide
If consortia partners, PSU will consult LEG on the use of the agreement
template provided. The PSU Partnership Officer/Regional
Partnership Officer will advise the Partnership Manager
Roles involved at this step: in parallel on the clearances required following Steps 1
and 2. Note that for consortia which are not solely
composed of private sector partners, both PSR and PSU
need to be consulted.
If the consortium includes other NSAs, such as non-
governmental organizations or academic research
institutions, PSU should be consulted. If the consortium
Actions involved at this step: involves FAO receiving a financial contribution from one
or more of the consortium members, the process for a
Initiate contact financial agreement should also be followed (see process
for resource partners with a financial contribution). FAO
Develop a draft concept note
cannot take part in consortia where the allocation and/or
disbursement of funds from FAO to private sector entities
Request and receive confirmation of
in the consortium is envisaged.
programmatic relevance from the Head of
the Proposing Unit/Formulator Once the Partnership Manager has completed Step 1 of
the engagement it is possible to proceed to Step 2: Due
Request and receive confirmation of Private diligence and risk assessment/management.
Sector Strategy Fit from PSU
Designate the Partnership Manager A private sector

association or federation
FAO can engage with a consortium (with no privileges
to any specific consortium member). A consortium Has private-sector companies as its members, even if the
association or federation itself has a legal non-for-profit status.
comprises two or more business entities, individuals
Industry, trade associations, federations and other umbrella
or organizations – and may include other state and/or
bodies that represent private-sector interests can play a major
non-state actors (NSAs) – who combine their resources, role in influencing corporate sustainability, as well as business
capacity and knowledge to achieve a common goal strategies, practices and investments that contribute to the
or objective. A consortium-based partnership always achievement of the SDGs. In the agrifood sector, specifically,
implies that the parties have signed an agreement to they can play a major role in collective action, in increasing
form that consortium. commitments by industry to common goals and in increasing
the scale and impact of actions. FAO has traditionally engaged
Consortium agreement with such private-sector umbrella organizations and aims to

engage more in such commitments, as the risk of FAO giving
unfair advantage or exclusivity to members is mitigated
FAO has established a consortium with the Danish Food and
considerably compared with an individual entity.
Agriculture Council and Agriterra to support the Government of
Kenya in developing a concept note and project proposal to be The process for engaging with industry associations, federations
presented to the Green Climate Fund (GCF). The concept note and other umbrella bodies is the same as for a single private-sector
and project proposal will be developed based on the project idea entity. The screening and due diligence process is undertaken for
note developed by FAO in collaboration with Agriterra, which was the umbrella organization as a whole, however, in-depth findings
endorsed by the GCF Nationally Designated Authority in Kenya. The may include specific risks in engaging with a given individual
consortium foresees contributions to a common project and goal member. In terms of contractual obligations, formal agreements
and has been recorded in FPMIS, as required by the FAO Guide to signed with associations and other industry umbrella bodies
the Project Cycle. Financial contributions from both entities, DAFC should include a clause stating that the engagement with FAO is
and Agriterra, to FAO are foreseen, so contribution agreements only with the umbrella body and not with its individual members,
have been signed with each of the entities. The project document and that should engagement with any individual member be
and terms of reference annexed to it clearly state the roles and envisaged by FAO, a separate due diligence process will be
responsibilities of each partner. Each of the consortium partners initiated and a separate agreement entered into between FAO and
is responsible for its own tasks and responsibilities in line with its the individual member. In addition, the umbrella private-sector
competencies, in addition to what has been agreed bilaterally in association/federation must ensure that specific deliverables and
the contribution agreement. objectives set out in the mutually agreed areas of collaboration
are performed only by members compliant with FAO’s mission
and mandate.
The PSU Partnership Officer/Regional Partnership
In cases where specific activities of the engagement with FAO
Officer advises on the possible risks of and conditions for
are being implemented by an individual member of an industry
engaging in consortia involving private sector entities. association, or where such a member is representing the umbrella
PSU, in consultation with LEG, will provide a consortium body and visibility is required, reference shall always be made to
agreement template for that purpose. Where the legal the umbrella body.
agreement is drawn up by one or more consortium
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Practical Guide
If resource partners with financial

contributions
Case study
Submitting a proposal
Mahmoud is the FAOR in South Sudan. He has been
approached by the Equatoria Teak Company (ETC), a Initiate contact
private company involved in coffee production in the
country, which would like FAO to join a consortium Develop a draft concept note
involving ETC, ICCO Cooperation and the Humming
Action for Peace and Development, to implement a Request and receive confirmation of Private
project aimed at providing jobs and livelihoods for Sector Strategy Fit from PSR
youth and women through coffee.
Designate the Partnership Manager
The project will be supported by the Embassy of the
Netherlands through the Netherlands Enterprise Request and receive a review from FLO
Agency, which has provided an agreement template
for the consortium partners. Mahmoud prepares
a concept note and discusses the proposal with
the Regional ADG for Africa, including the project’s
objectives, areas of interest and FAO’s possible
Resource partner
role, responsibilities and legal obligations with
regard to the other partners of the consortium.
with a financial
The proposal does not foresee any receipt of contribution
financial contributions to FAO. They both agree
that the engagement is an excellent opportunity, The Bill & Melinda Gates Foundation made a USD
as the proposed areas of focus are aligned with and 10 million donation to FAO to support the fight
relevant to FAO’s work in the country. against the Desert Locust upsurge in East Africa.
This involved signing a contribution agreement.
Mahmoud, as the Contact Lead, requests that the
ADG for Regional Office for Africa (RAF), as Head N.B. Please refer directly to PSR for financial contribution
of the Proposing Unit/Formulator, to confirm agreements and in-kind contribution agreements where
the programmatic relevance of the proposed philanthropic foundations are involved.
engagement in writing. After receiving it, he submits
the proposal, with the completed Private Sector
Strategy Fit form to PSU for confirmation of its When PSR reviews a proposal indicating that there is an
alignment with the Private Sector Strategy. Once associated financial contribution, a PSR Funding Liaison
this confirmation has been obtained, a review Officer (FLO) will advise the Partnership Manager on Trust
request for the proposed agreement template by Fund modalities and project-cycle requirements. The FLO
the Netherlands Enterprise Agency is submitted to will also share the appropriate agreement template. In
LEG to confirm that the proposed legal obligations
addition, the FLO will advise on the risks and conditions
are acceptable to FAO. Due to the importance and
potential impact of the engagement, Mahmoud associated with receiving financial contributions from the
decides to act as the Partnership Manager. Mahmoud private sector (see Figure 11). No partnership can move
has completed Step 1 and can proceed to Step 2: due forward without undergoing full due diligence (Step 2).
diligence and risk assessment/management. The Partnership Manager must understand the special
conditions that apply to financial contributions.
If a project qualifies as an emergency, PSR will inform the

Partnership Manager that FAO OER will be acting as FLO.
Please note that for cases where a concept note has been
already prepared at the time of due diligence submission,
as the concept note involves programmatic endorsement
in by the Head of the Proposing Unit/Formulator, this
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Practical Guide
would also serve as confirmation of programmatic Please note that for cases where a concept note has been
relevance for due diligence purposes, hence no need for already prepared at the time of due diligence submission,
additional documentation. as the concept note involves programmatic endorsement
by the Head of the Proposing Unit/Formulator, this would
When the concept note is either not required or not yet also serve as confirmation of programmatic relevance
available at the time of due diligence submission (Step 2), for due diligence purposes, hence no need for additional
the confirmation of programmatic relevance is to be documentation.
provided in writing by the Head of the Proposing Unit/
Formulator to allow the start of the due diligence process When the concept note is either not required or not yet
in Step 2. available at the time of due diligence submission (Step 2),
the confirmation of programmatic relevance is to be
Once the Partnership Manager has completed Step 1 provided in writing by the Head of the Proposing Unit/
of the engagement process it is possible to proceed to Formulator to allow the start of the due diligence process
Step 2: Due diligence and risk assessment/management. in Step 2.
Once the Partnership Manager has completed Step 1

If resource partners with in-kind contributions of the engagement process it is possible to proceed to
Step 2: Due diligence and risk assessment/ management.
Resource partner
with an in-kind
contribution
FAO and Kühne Foundation partnered in 2014 to
improve humanitarian logistics (the process of training,
planning, implementing and controlling the cost-
Initiate contact
efficient flow and storage of goods and materials) and
to enhance preparedness and logistics related to Level
Request and receive endorsement of Three emergencies (where support is mobilized across
concept note from the Head of the the entire humanitarian system).
Proposing Unit/Formulator
N.B. Please refer directly to PSR for financial contribution
Request and receive confirmation of Private agreements and in-kind contribution agreements where
philanthropic foundations are involved.
Sector Strategy Fit from PSR
Designate the Partnership Manager

Secondments
When PSR identifies an in-kind contribution during the As long as no conflict of interest arises, private sector
review of a proposal, the PSR Partnership Officer/Regional actors can provide expertise and in-kind support,
Partnership Officer will share the template for a donor including secondments at headquarters and field level
agreement with the Contact Lead /Partnership Manager. in mutually agreed areas of collaboration and with
No partnership can move forward without undergoing well-established deliverables and time frame. Usually,
full due diligence. The PSR Partnership Officer/Regional secondments take place in the context of an already
Partnership Officer will advise the Partnership Manager existing partnership agreement in place.
on the clearances required following Steps 1 and 2. For
the approval process to be completed, LEG clearance is Administrative procedures for secondments need to be
always necessary. followed as described in Administrative Circular 2019/05
related to “Agreements for the loan of officials/experts to
If the in-kind resource partnership qualifies as an FAO”. For agreement signatures, please consult with PSR
emergency, PSR will inform the Partnership Manager that and the Human Resources Division (CSH).
OER should be involved and that the expedited emergency
procedure should be followed.
N.B. Please refer directly to PSR for financial contribution agreements and in-kind contribution agreements involving philanthropic foundations.
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Practical Guide
Step 2 process after completing Step 1, including ensuring

clarity of scope, strategic alignment and programmatic
Due diligence and risk assessment/management relevance of the proposed engagement. The due diligence
and risk assessment/management is performed by PSS,
whose role is to support informed decision-making by
Roles involved at this step: management. Figure 12 shows the scope of the due
diligence and risk assessment/management process,
which is performed for proposed formal engagements
with the private sector (and other NSAs) at an early
stage. Prior to engaging with any private sector (and
other NSAs) the Head of the Proposing Unit/Formulator
must engage with PSS to start the due diligence review.
Figure 13 shows the main elements of the due diligence
Submit a Due Diligence Request Form to PSS workflow in chronological order. Unlike the other steps, the
with PSU/PSR in copy individual tasks to be completed for formal engagements
are the same for all engagement types (see main Step 2
Receive the due diligence screening and risk bullet points above), although there is a separate process
assessment results from PSS for prospective operational partners under Manual
Section 701 (see box on OPIM under MS701).
If minimum risk, proceed to step 3
Due diligence screening will result in the classification of
If low risk, request PSS to submit for EPC the entity in terms of perceived level of reputational risk –
review/decision minimum, low, medium or high risk – after which the due
diligence workflow will follow the required procedures for
If medium or high risk, develop an IBRMP, each risk level.
which is submitted by PSS to EPC for
review/decision
The due diligence screenings and risk
Receive and act upon PSS notification on assessments have a validity duration
of three (3) years. No new due
final EPC decision
diligence review is required should
the scope and type of engagement
remains unchanged and the new
The Head of the Proposing Unit/Formulator, supported engagement simply contributes towards the
by the designated Partnership Manager, can only same areas of collaboration.
progress to Step 2 of the private sector engagement
FIGURE 12: SCOPE OF DUE DILIGENCE AND RISK ASSESSMENT/MANAGEMENT
THE PROCESS IS REQUIRED FOR THE PROCESS IS NOT REQUIRED FOR

• All prospective engagements with the private sector and Anything not listed under A, including:
other NSAs
• FAO staff participation in events, boards, etc., in their official
• Any significant new commitments to an existing capacity without the use of the FAO logo
engagement
• FAO vendors under Manual Section 502 (MS502)
• Renewal of an expired engagement when the due
diligence was not conducted or was conducted before • FAO services Manual Section 507 (MS507) (LoAs)
the new approach set out in FRAME • State actors
• Any emerging issue regarding an ongoing engagement • Fully publicly funded academic or research institutions
• FAO prospective operational partners under Manual • Individuals
Section 701 (MS701)
OPIM under Manual Section 701 (MS701) follow a streamlined due diligence and risk assessment process without EPC review:
• The requesting unit submits the complete due diligence OPIM request form, together with an operational partner declaration
(MS701, Annex 7) to PSS at PSS-DueDiligence@fao.org .
• PSS sends the due diligence screening and risk assessment to the requesting unit with OPIM Team in copy.
• There is no EPC review, as this will follow a separate review and decision-making process per MS701.
Placement of the logo on any related products must comply with the FAO Logo Policy and Guidelines.
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Practical Guide
FIGURE 13. MAIN ELEMENTS OF THE DUE DILIGENCE WORKFLOW
The due diligence and risk assessment/management • PSS notifies the Head of the Proposing Unit/
process includes a pre-screening phase (completed Formulator of the EPC’s decision with PSU/
previously in Step 1) to ensure that the proposed PSR in copy.
engagement has programmatic relevance, aligns with
the Private Sector Strategy and has potential for impact. Medium or high risk
The confirmation of programmatic relevance is provided • PSS requires the Head of the Proposing Unit/
by the Head of the Proposing Unit/Formulator under Formulator to develop an Impact/Benefits
Administrative Circular 2022/01, paragraph 7, whereas Risk Mitigation and Management Plan
(IBRMP)
alignment with the Private Sector Strategy and potential
for impact are confirmed by the Partnership Officer in • Head of the Proposing Unit/Formulator
PSU before being submitted for due diligence review. develops the IBRMP with the help of the
Partnership Manager and PSU/PSR and
After the pre-screening phase and prior to engaging with sends it to PSS.
any private sector entity (or other NSAs), the Head of • PSS sends the due diligence screening and
the Proposing Unit/Formulator, with the assistance of risk assessment together with the IBRMP to
the appointed Partnership Manager, if necessary, must the EPC for review and decision.
submit the due diligence request form to PSS, with PSU • The EPC reviews the case; the Head of the
Director/PSR Director in copy. Proposing Unit/Formulator may be asked to
make a 3–4-minute presentation to the EPC;
At this point, PSS conducts due diligence screening on the EPC makes a decision.
the entity in the context of the proposed engagement, and • PSS notifies the Head of the Proposing Unit/
the proposal is assigned a color-coded risk level: Green = Formulator of the EPC decision with PSU
minimum risk; Yellow = low risk; Orange = medium risk; Director/PSR Director in copy.
Red = high risk – following screening and analysis against
a specific set of due diligence criteria. Note: PSS may get in touch with the Head of the
Proposing Unit/Formulator or the PSU/PSR/
As noted, the risk level dictates the subsequent workflow. Regional Partnership Officer to ask for clarification
on the proposed design of the engagement and/or
Minimum risk for additional information required to complete the
• PSS provides the screening and risk screening.
assessment to the Head of the Proposing
Unit/Formulator with PSU/PSR in copy. EPC involvement: For cases with low (ad interim), medium
• The Head of the Proposing Unit/Formulator, and high risk, the EPC is involved in the assessment
with the assistance of the Partnership and decision. EPC decisions are adopted by consensus.
Manager may proceed to Step 3. The potential outcomes of the EPC process are that
the EPC may (i) endorse, (ii) not endorse, (iii) endorse
Low risk with conditions (for example, integrate risk mitigation
• PSS sends the due diligence screening and elements from the IBRMP into the legal instrument or
risk assessment to the EPC for review and limit the geographic scope of the engagement, or clarify
decision via email (ad interim). the roles or the sets of activities to be carried out), or
(iv) refer the matter to the Director-General.
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Practical Guide
FIGURE 14: IBRMP STRUCTURE

Case study SECTION I SECTION II
Due diligence screening, Highlight value added Effective risk mitigation and
risk assessments and management
the EPC Entity’s full name Main risks identified
Impact and benefits Proposed risk mitigation plan
Juan is the FAOR and Contact Lead of a proposed Impact expected Proposed risk management set up
engagement with a private sector entity in the
Benefits Monitoring and reporting schedule
Dominican Republic. He has completed Step 1 for
a proposed engagement with a promising start-up Indicators
that has come up with innovative solutions to employ
youth in agriculture across the country. This is very FIGURE 15: SAMPLE OF FREQUENT RISKS AND MITIGATION MEASURES IN IBRMPs
much in line with the CPF and fully aligned with the
Strategic Framework PPAs. In addition, Juan has Undefined/too broad in scope
received confirmation of alignment with the Private
Sector Strategy from PSU and has been advised by
PSU to submit a request for screening of the entity
to PSS. As FAOR and the Head of the Proposing Unfair advantage/exclusivity
Unit/Formulator, Juan decides to act as Partnership
Manager due to the importance of this engagement. • Non-exclusive agreement
Juan completes the due diligence screening and • Call for interest
risk assessment, with support from the Regional
Partnership Officer, and submits the completed
• Information generated made publicly available, preventing exclusive access to
critical data for any stakeholder
form to PSS at PSS-DueDiligence@fao.org, copying
PSU at PSU-Director@fao.org. • Ensure communication/marketing material does not give perception of FAO’s
endorsement of entity, its products or services
Following the review, he receives the screening
results from PSS, which classify the entity as
• Partnership Manager responsibility assigned; Global Resource Management (GRMS);
risk escalation mechanisms
low risk. He is not required to prepare an IBRMP,
however must await the EPC’s decision on the Undue influence
proposed engagement before taking further action
or negotiating with the entity. Juan can move to
Step 3 as soon as he receives communication on • Ensure prospective partner does not gain decision-making powers over initiatives or
influence FAO’s policies or position on any scientific or technical issues
the EPC’s decision to move ahead with the proposed
engagement. • Collaboration established solely for the purposes of the defined areas of cooperation
• Within the agreement, clear and distinct roles and responsibilities are emphasized
The Impact/Benefits Risk Mitigation and Management • Partnership Manager rescial nsibility assigned; Global Resource Management
(GRMS); risk escalation mechanisms
Plan (IBRMP): For cases with medium and high risk, an
IBRMP is an important part of the due diligence and risk
assessment/management process. The IBRMP is a short, Risks related to use of (personal) data and intellectual property rights
structured document that clarifies the expected benefits
and impact of the proposal while detailing the appropriate • Data and intellectual property rights protection clauses in contract
risk mitigation measures for each main risk identified in • Limiting scope and piloting
the due diligence screening process, with the proposed
management setup to ensure proper management of
• Information generated through project made publicly available, preventing exclusive
access to critical data for any stakeholder
risks during implementation. It is the responsibility of
the Head of the Proposing Unit/Formulator (supported • Partnership Manager responsibility assigned; Global Resource Management (GRMS);
by the Partnership Manager as deemed necessary) to
prepare the IBRMP, with support from PSU/PSR.
Entities operating in high-risk sectors and environmental,
social and governance (ESG) risks
The IBRMP has two main sections (see Figure 14):
• The first aims to highlight the value added
of the proposal (the expected benefits and
• A combination of the above measures
impact, with relevant indicators). • Partnership Manager responsibility assigned; Global Resource Management (GRMS);
The second focuses on the effective risk mitigation/risk
management with regard to the risk assessment
conducted by PSS Director in the screening. Please see
Figure 15 for examples of common risks and relevant
mitigation measures.
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Practical Guide
The IBRMP is reviewed by the EPC together with the Note: PSU/PSR and PSS must always be consulted
due diligence screening and risk assessment to ensure prior to any extension of or amendment to an existing
the benefits outweigh mitigated risks. If a proposed agreement to ascertain if there is a need to undertake
engagement is endorsed by the EPC, the elements another due diligence review in accordance with FRAME
contained in the IBRMP, together with any additional and AC 2022/01. If a due diligence review is undertaken
conditions/recommendations by the EPC, will then be and the resulting risk profile of the partner requires
integrated into the legal and other documents formalizing submission to the EPC and the EPC proposes conditions
the engagement. on the collaboration, such EPC conditions will be treated
as an amendment (see section on extensions and
The Head of the Proposing Unit/Formulator, supported amendments).
by the Partnership Manager, can continue to Step 3
only after successful completion of the due diligence
screening and risk assessment/management process,
with clearance by the EPC for low (ad interim), medium
and high-risk proposals.
Case study
The importance of a well-considered IBRMP
Joshua is a Programme Officer at the Technical Division at FAO headquarters and is working on a project
proposal with a global research organization in a consortium with other NSAs. The global research organization
is the project donor responsible for channelling the funds from USAID.
Joshua, who is assigned by the Director of his Division to act as the Partnership Manager, follows the steps indicated in this
Guide and submits the request for due diligence to PSS via his Director’s office. While PSS processes the request and carries
out the analysis, PSS notes that the proposal lacks some clarity in its structure and with regard to the entities’ involvement
in the consortium.
Joshua and the Director of his Division provide additional information and PSS completes the due diligence screening and risk
assessment. The screening shows very high risks in relation to two of the private sector entities proposed for the engagement
within the consortium (one is even flagged as a violator of the United Nations Global Compact principles), while the risks
associated to the main entity receiving the funds are less severe. Accordingly, PSS assigns the proposal a high risk based on
the criteria described in FRAME.
In light of the screening and with a view to potential mitigation measures, Joshua and his team contact PSS for feedback and
decide to revise the proposal and draft work plans for the project, incorporating improved, effective mitigation actions, which
are described in the IBRMP.
In the revised architecture of the proposal and the mitigation measures identified in the IBRMP:
• FAO only engages directly with the project donor (the research organization), which is solely responsible for leading the
consortium and the engagement with the private sector entities involved.
• FAO has a distinct technical role with no fiduciary relationship with such actors.
• FAO ensures the agreement will clearly state that neither the project donor nor any of the entities mentioned will have
any right to provide access to decision-making structures of FAO or to influence its policies or position on any scientific
or technical issues.
• With respect to FAO’s procurement procedures, the proposed project does not give any unfair advantage or preferred
relationship to any of the entities in the consortium.
The proposed engagement, along with the due diligence screening and risk assessment, is then submitted to the EPC, together
with the detailed IBRMP for review and decision. The Director of Joshua’s Division is invited to give a brief presentation to the
EPC on the case and proposed risk mitigation measures identified in the IBRMP, and to respond to EPC members’ requests for
clarification. During the EPC briefing, members welcome the well-considered measures set out to mitigate the risks identified
in the due diligence screening. They suggest strengthening some proposed measures and consulting with LEG, to ensure the
proposed mitigation measures and the recommendations of the EPC are reflected in the final agreement.
Joshua can now proceed towards finalization of the proposed engagement following the usual processes (Steps 3 to 6).
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Practical Guide
Step 3 Partners
Negotiating and developing a formal agreement
Once due diligence has been completed in line with
approval, the Head of the Proposing Unit/Formulator,
supported by the Partnership Manager, can start Step
3 – negotiating and developing a formal agreement. In
this step, the Head of the Proposing Unit/Formulator,
supported by the Partnership Manager, works with the
appropriate entities to determine which instrument is
suitable for the proposed engagement. This practice Actions involved at this step:
routinely results in negotiations involving the potential
prospect or partner and FAO. To ensure nothing is Consult with PSU/Regional
overlooked, it is important that the PSU Partnership Partnership Officer
Officer or Regional Partnership Officer be involved in
negotiations. Negotiate and develop agreement and joint
workplan
The Partnership Manager will receive support from their
PSU Partnership Officer/Regional Partnership Officer In Step 3, all formal engagements with partners require
to develop the appropriate agreements. There are four the negotiation and development of an MoU or similar
main types of agreement for formal engagements agreement. MoUs establish a general framework for
without financial or in-kind contributions: an LoI, MoU, collaboration and are legally binding on the parties.
implementation/cooperation agreement or consortium They are usually accompanied by a detailed annual
agreement. Formal engagements with financial or in-kind workplan. They cannot entail any financial commitment
contributions use contribution agreements. for the Organization. Please refer to Administrative
Circular 2022/01 on the procedures for the preparation,
Prospects clearance, signing and archiving of agreements.
If implementing partners

Consult with PSU/Regional
Partnership Officer Consult with PSU/Regional
Partnership Officer
Negotiate and develop an LoI
Negotiate and develop implementation/
cooperation agreement
Step 3, all formal engagements with prospective

partners require the negotiation and development of Under Step 3, all formal engagements, including with
an LoI. LoIs record the intent of the parties to develop a implementing partners, require the negotiation and
future collaboration. LoIs cannot contain provisions that development of an implementation/cooperation
reflect binding commitments for the parties with regard agreement. They may be used to implement activities
to engaging in specific activities. If the parties decide within an existing project or programme, or within the
to collaborate, another type of agreement, usually an framework of an existing MoU (or similar agreement).
MoU, should be concluded. Their duration cannot go beyond the project, programme
or agreement under which they are established and should
not entail financial obligations for the Organization. These
agreements are excluded from the scope of Administrative
Circular 2022/01.
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Practical Guide
If consortia In Step 3, if the engagement has been endorsed by the

EPC, the Head of the Proposing Unit/Formulator should
establish the project task force and enter the project
Roles involved at this step: concept note into FPMIS for Pipeline Endorsement.
All formal engagements with a financial contribution
from resource partners require the negotiation and
development of a contribution agreement. A designated
FLO will support this process. The steps for the
identification, formulation and appraisal of project
document and contribution agreement are described in
Actions involved at this step: the FAO Guide to the Project Cycle and are mandatory for
all projects (this Guide does not supersede or replace the
Consult with PSU/Regional FAO Guide to the Project Cycle).
Partnership Officer
For agreements with financial contributions, it is
Negotiate and develop a consortium necessary to develop and appraise the project document
agreement and the contribution agreement per the FAO Guide to the
Project Cycle. FAO can only receive funds from a private
In Step 3, all formal engagements formalizing a sector or NSA through a Trust Fund Agreement. As for
consortium require the negotiation and development all other Trust Fund contributions, a project proposal
of a consortium agreement. Should the use of a non- (concept note) must be prepared in accordance with FAO
FAO template be proposed by one of the partners or Guide to the Project Cycle.
be a condition of an anticipated donor, a review of
the proposed agreement/legal instrument by LEG is If resource partners with in-kind contributions
required. The roles and responsibilities of all parties,
in particular for FAO, should be clearly set out in the
agreement. The duration of the agreement should be
limited to the activity or common project and should be
clearly stated in the agreement.
Should a consortium also expect the receipt of financial
contributions from one of the partners or donors, a
contribution agreement should be negotiated, in line with
the process for resource partners, below.
If resource partners with financial Consult with PSR/Regional
contributions7 Partnership Officer
Roles involved at this step: Negotiate and develop a contribution

agreement supported by PSU/Regional
Partnership Officer
In Step 3, all formal engagements with resource partners

require the negotiation and development of a contribution
agreement. This agreement includes standard provisions
to ensure the recognition of FAO’s privileges and
Actions involved at this step: immunities, as well as important conditions to guarantee
that FAO does not incur financial or fiduciary risk. FAO
Establish the project task force and enter
the project concept note into FPMIS9 has a standard contribution agreement format for private
sector partners that must be used for all such agreements,
Consult with FLO in principle (please see Figure 16). Discussions should be
held with PSR and LEG to identify the instrument most
Negotiate and develop appropriate for each case.
contribution agreement
Develop project documents in line with the FAO

Guide to the Project Cycle
7 Please refer to the FAO Guide to the Project Cycle.

8 This step is described in Project Cycle Manual Phase 1 in the HYPERLINK «https://home.fao.org/faohandbook/area/projects/,DanaInfo=intranet.fao.org+» FAO
Guide to the Project Cycle, which includes indication of who provides endorsement.
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Practical Guide
Case study
Turning an interaction with the private sector into a potential engagement
Mirna, the appointed Partnership Manager for an envisaged partnership with Zubair SEC in Oman has completed Steps 1 and 2.
At this stage, she has the endorsement from the Head of her Proposing Unit/ Formulator, written confirmation of alignment with
the Private Sector Strategy from PSU, and endorsement with no conditions by the EPC. She can now proceed with negotiations
and begin to develop an MoU and workplan.
Because of the nature of the proposed activities and thematic areas of interest, Mirna consults the relevant technical officers in
FAO Oman, the Regional Office for the Near East and North Africa (RNE) and headquarters for technical input, involving them
in discussions with Zubair SEC. The RNE Regional Partnership Officer is fully involved in the process and has been providing
necessary guidance. Specific activities and the timeframe for the engagement are agreed during the discussions and a workplan
and MoU are drafted, using the template provided by PSU. Both documents are shared with Zubair SEC for its review following
internal discussions and review.
Mirna has received and reviewed Zubair SEC’s inputs on the draft MoU and workplan and, based on the recommendation of the
Regional Partnerships Officer and PSU, may proceed to Step 4.
Step 4
Clearances and approvals
Prospects
Case study
Formal engagement with Roles involved at this step:
a financial contribution
The Forestry Unit is working with the support of

a technology corporation on a project to develop
national monitoring systems in the Regional Office
for Europe and Central Asia (REU). The entity
has committed to contribute USD 2 000 000 to Actions involved at this step:
the project. For this project, Viktor is appointed
Partnership Manager. Viktor prepares a concept Request and receive clearance from the
note which he shares with his HPU, and with the go Head of the Proposing Unit/Formulator
ahead of his Head of the Proposing Unit/Formulator
works with the PSR/REU Partnership Officer to Request and receive required clearances
obtain due diligence clearance from PSS. Once the from: PSU, line A and B
engagement proposal is endorsed, Viktor establishes
the project task force, enters the project concept Request and receive LEG clearance and, if
note into FPMIS and works with the FLO to develop required, ODG clearance9
the financial contribution agreement and project
documents. He uses the FAO Guide to the Project Once clearances received, proceed with LoI
Cycle to navigate the steps in the project cycle/ signature
FPMIS (with support from the FLO) and complete
the necessary requirements for engagements with Signature by the Director-General, or the Director-General
financial contributions. can delegate the signature directly to the Head of Stream
or other appropriate authority.
9 ODG clearance is only required for complex and sensitive LoIs, depending on the scope of the anticipated collaboration and any expectations that may be raised by
concluding said LoI.
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Practical Guide
Partners to the standard clauses. (Send requests to OCCP-

Clearance@fao.org) LEG forwards the draft agreement to
ODG for final approval and, where applicable, delegation
Roles involved at this step: of authority to sign it on behalf of the Organization.
After signature, the Partnership Manager should submit
the agreement to relevant repositories, including FAO-
CONNECT@fao.org, LEG-Registry@fao.org and Signed-
Agreements@fao.org, and may proceed with the
engagement activities. Please note that LEG clearance
is required only if there are proposed changes to the
standard template of the implementation agreement.
If implementing partners
Request and receive clearance from the Head
of the Proposing Unit/Formulator Roles involved at this step:
Request and receive required clearances from:
PSU, line A and B
Request and receive LEG and ODG clearances
Once clearances received, proceed with

signature
Partner Request and receive clearance from the

Head of the Proposing Unit/Formulator
FAO signed an MoU with Paradise Foods, a large food
manufacturing company in Papua New Guinea, to collaborate on Request and receive required clearance
developing certification schemes for smallholder producers of from PSU
cocoa and to improve cocoa products, with a view to boosting
income-generating opportunities for smallholder farmers and
Request and receive clearance from LEG,
reducing rural poverty.
if required
Signature by the Director-General, or the Director-General Once clearances received, proceed with
can delegate the signature directly to the Head of Stream implementation/cooperation agreement
or other appropriate authority. signature
After the engagement is endorsed by the EPC, the
partnership agreement must go through other internal If consortia
clearances, as prescribed by the Administrative Circular
2022/01 on the procedures for the preparation, clearance, Roles involved at this step:
signing and archiving of agreements. For financial
contributions, the FAO Guide to the Project Cycle must
be followed.
For formal agreements without financial or in-kind

contributions and which fall under the scope of the
Administrative Circular 2022/01, line A and B Core
Leaders or ADG/RR and LEG must provide clearance for Actions involved at this step:
the agreement. When the Head of the Proposing Unit/
Formulator is at headquarters, written clearances must Request and receive clearance from the
be obtained from both line A and B Core Leaders. When Head of the Proposing Unit/Formulator
the Head of the Proposing Unit/Formulator is a Sub-
Regional or Country Office, written clearance from the Request and receive required clearances
relevant ADG/RR must be obtained. from: PSU, line A and B
Through the Contact Lead, the proposed MoU, workplan Receive required clearance from LEG10
and supporting documents are submitted to the PSU
Director for transmission to LEG for clearance. OCC will Once clearances received, proceed with
review the intellectual property and visibility clauses of consortium agreement signature
such agreements, as applicable, if changes are requested
10 If the scope of the consortium is broader than a project, ODG clearance is applicable.
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Practical Guide
If resource partners with financial divisions involved. The clearance of the legal instrument
contributions from LEG is always required.
Roles involved at this step: Resource partner with an

in-kind contribution
NaturaSi signed an agreement with FAO for the installation of
a mobile modular urban organic farm on FAO premises. The
modular garden is a rooftop farm that consisted of 14 triangular–
based prefabricated modules equipped with sensors capable of
detecting in real-time the stresses of the vegetation.
(PM) Request and receive clearance from
the Head of the Proposing Unit/Formulator FIGURE 16. SPECIFIC CONDITIONS FOR RECEIVING CONTRIBUTIONS
FROM THE PRIVATE SECTOR
(HPU/F) Receive required clearances in line
with the FAO Guide to the Project Cycle
Note
(HPU/F) Once clearances received, proceed Specific conditions for
with contribution agreement signature by
DDG Partnerships and Outreach
receiving contributions
from the private sector
For agreements with financial contributions, it is FAO can only receive funds from a private sector entity
necessary to develop and appraise the project document or NSA through a Trust Fund agreement. This Agreement
includes standard provisions to ensure the recognition
and the contribution agreement per the FAO Guide to the
of FAO’s privileges and immunities, as well as important
Project Cycle. FAO can only receive funds from a private conditions to guarantee that FAO does not incur financial
sector entity or NSA through a Trust Fund Agreement. As or fiduciary risks. All Trust Fund agreements are signed on
for all other Trust Fund contributions, a project proposal behalf of FAO by the DDG Partnerships and Outreach stream
(concept note) must be prepared in accordance with the or those to whom the DDG delegates ad hoc authority to
FAO Guide to the Project Cycle. sign. FAO has a standard contribution agreement format
that must be used for all such agreements.
If resource partners with in-kind contributions Private sector entities frequently propose modifications
to the standard template or using their own contractual
Roles involved at this step: formats. These run the risk of subjecting FAO to national
laws, requiring individual audits or other conditionalities
that are not acceptable to a multilateral organization such
as FAO. This, in turn, often leads to lengthy negotiations to
protect FAO’s status as a Specialized Agency of the United
Nations and to ensure compliance with FAO Basic Texts.
In such cases, the burden does not generally fall on the

Actions involved at this step: requesting unit, but on PSR, LEG and CSF, as well as other
divisions. It is important to bear in mind that where small
Request and receive clearance from the Head contributions are concerned, the cost of staff time involved,
of the Proposing Unit/Formulator for which the units are not reimbursed, will often exceed the
value of the actual contribution.
Request and receive clearances from relevant
divisions, as required Before proceeding further in discussing a contribution from
the partner, it is, therefore, important that the Partnership
Manager ascertain their willingness to use the FAO standard
Receive required clearance from LEG
contribution agreement format without modification.
Once clearances received, proceed with PSR recommends proceeding with this negotiation if the
contribution agreement signature by DDG counterpart is willing to accept the FAO standard agreement
Partnerships and Outreach without modification. Should it be necessary to negotiate
modifications or a new agreement format, and when the
For in-kind contributions, once clearance from Head amount is small (for example, less than USD 1 million),
of Proposing Unit/Formulator is obtained, additional the Head of the Proposing Unit/Formulator will need to be
clearances may be required from different divisions. prepared to pay the relevant FAO units for the staff time
involved in the negotiation.
PSR should be consulted to provide guidance on relevant
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Practical Guide
a due diligence review is undertaken and the resulting

risk profile of the partner requires submission of the
Case study proposed extension to the EPC and the EPC proposes
conditions to the collaboration, such EPC conditions will
Clearances be treated as an amendment and the extension must be
Florence, a Food Safety Officer (Partnership processed as an amendment in line with Administrative
Manager), has successfully completed Circular 2022/01. If there are changes to the scope and/
Steps 1 to 4. The proposed MoU and workplan have been or activities of the agreement, the Partnership Manager
reviewed and agreed by the entity and the PSU Partnership must consult relevant offices and units within the
Officer supporting Florence has confirmed that the Organization (including decentralized offices), as well
agreement is ready for LEG and ODG clearance. as relevant offices and units that may be called upon to
support the implementation of such proposed changes.
Through the Food Systems and Food Safety (ESF) Director,
the Head of the Proposing Unit/Formulator, the proposed
MoU and workplan and supporting documents (screening Step 5
results, EPC endorsement, clearance by line A and B) are
submitted to the PSU Director for transmission to LEG for
Implementation, monitoring and evaluation
clearance and subsequently to ODG for final approval.
Prospect
Extensions of signed agreements Roles involved at this step:
Agreements expire automatically on the originally set

date, unless they are extended before they expire. The
Partnership Manager is responsible for monitoring the
expiration date of the agreement. If there are no changes
to the signed agreement other than the extension of
its duration, and/or updates to timing of activities in
the annexes as a result of such extension and where
the nature of the cooperation remains substantially
the same, clearance from the LEG is not required. PSU Measure progress of the engagement
and PSS need to be consulted prior to any extension to
ascertain whether another due diligence screening is
needed in accordance with the FRAME and in line with
the Administrative Circular 2022/01. In the event that a
due diligence review is undertaken and the resulting risk
profile of the partner requires submission of the proposed Partners
extension to the EPC and the EPC proposes conditions
on the collaboration, such EPC conditions will be treated
as an amendment and the extension must be processed
as an amendment in line with Administrative Circular
2022/01.
Amendments to signed
agreements
Amendments to the signed agreement that significantly
change the scope and type of collaboration may Monitor progress against agreed
need to follow the same procedure as new proposed indicators and workplan
collaborations. The Head of the Proposing Unit/
Formulator, in consultation with PSU, is responsible for Step 5 of the engagement process has two main goals:
making this assessment when proposals for amendments to ensure the smooth implementation of the engagement
are received from the Partnership Manager. All procedures and to monitor and evaluate results. The documents
must follow the Administrative Circular 2022/01. The created in the previous steps of the engagement process
Legal Office must always be consulted when there are (such as the agreement and associated workplan) will
proposed amendments to the legal clauses. PSU and include indicators and other guidance on how to execute
PSS must always be consulted prior to any amendment the engagement. They will also include guidelines on
to ascertain whether another due diligence screening is when it is necessary to measure the progress of the
needed in accordance with the FRAME. In the event that engagement against specific indicators.
41
Practical Guide
FAO’s new Private Sector Strategy places greater

emphasis on monitoring and evaluation for more
sustainable and impactful results. Step 5 is crucial to Case study
maintaining good relations with a private sector partner
and forms the foundation of potential ongoing LoI with CropLife
partnerships and resources. It is essential that the International (CLI)
engagement be well managed and that results be reported
in a timely manner. FAO has been informally engaging with CropLife
International (CLI) for more than a decade, notably on the
Monitoring the progress of and reporting on private disposal of obsolete pesticide stocks. In 2020, FAO and CLI
sector engagements will support the goal of ensuring signed an LoI expressing interest in holding consultations
the quality and added value of the collaboration and are and coordinating actions on the sound management of
critical to future planning and upscaling. They are also pesticides to minimize pesticide risk, as well as other areas
key to communicating success and building on lessons of mutual interest.
learned to further inform the collaboration.
As CLI is the largest global association representing
For all forms of partnerships, the Partnership Manager is agrochemical companies, the LoI has been subject
advised to: to criticism from CSOs and other stakeholders. This
• schedule regular meetings with the private sector engagement is sensitive and could have an impact on public
partner, as well as with FAO units implementing any opinion towards FAO. Therefore, the Technical Partnership
joint activity, to monitor progress against the workplan Manager will consult PSU before implementing any publicly
and targets; and visible joint activities with CLI, including joint workshops
or the participation of CLI or its members in FAO events.
• monitor the implementation of the IBRMP, if classed PSU will then advise whether OCC, PSS and LEG review
as a medium or high-risk partnership. should be sought. Each case will be carefully evaluated and
In addition, at yearly intervals, the Partnership Manager, discussions held on the best way to proceed. For example,
in consultation with the FAO units involved in the when Technical Partnership Manager organizes a workshop
partnership, should: with CLI as a panelist, other stakeholders are invited to the
1. for partners (MoU) – prepare an annual panel, including governments and civil society, creating
progress report (form) and send it to a space for a multi-stakeholder dialogue, avoiding any
FAO-CONNECT@fao.org; impression of an unfair advantage being given to CLI.
2. for prospects (LoI) – prepare an informal In the case of FAO’s CLI engagement, or other sensitive
narrative report on the ongoing discussions engagements with impacts on public opinion, it is
and send it to FAO-CONNECT@fao.org; important that the Technical Partnership Manager also
3. for financial resource partners – follow the collaborate with PSU and OCC to develop an appropriate
project-cycle monitoring and reporting communications campaign, highlighting to Members and
schedule and procedures. the general public why it is important to engage with the
private sector in a particular sector, how the risks are
Lastly, six months before the end-date of an agreement, being mitigated and being open about the contents of the
the Partnership Manager, in close consultation with actual agreement.
PSU, should consider whether the agreement should be
renewed and make plans accordingly.
If consortia
If implementing partners Roles involved at this step:

Actions involved at this step: Monitor progress against agreed
indicators and workplan
Monitor progress against agreed
indicators and workplan Monitor the implementation of consortia
agreement
42
Practical Guide
If resource partners with in-kind contributions

Monitoring arising risks, Roles involved at this step:
non-compliance and
disengagement
Monitoring the implementation of an engagement
is also important in order to monitor and manage
arising risks and non-compliance. Should risks be
identified during implementation, the Partnership
Manager should flag the risk immediately to Actions involved at this step:
management for decision on actions to be taken.
Monitor the implementation of the
FAO may withdraw from partnerships where contribution agreement
there has been a sustained absence of active
collaboration with the partner, or where the
partner does not comply with its obligations,
either financial or programmatic. Step 6
Non-compliance can include behaviour that Reporting and communicating results
meets FAO’s exclusionary criteria; the use of the
engagement with FAO for purposes other than Roles involved at this step:
supporting the delivery of FAO’s mandate, such
as for commercial, promotional, marketing or
advertising reasons; the misuse of FAO’s name
or emblem; or other actions by the partner that
could have a negative impact on FAO’s integrity,
independence, credibility, reputation or mandate.
Existing partners should be disengaged if

evidence of FAO exclusionary criteria arises Actions involved at this step:
during implementation (Private Sector Strategy,
paragraph 57). Communicate updates on the CONNECT portal
via PSU
If resource partners with financial Communications expectations and approaches should

contributions always be clarified at the beginning of a partnership,
with both FAO and the private sector prospect or partner
aware of the other’s needs, goals, policies and procedures.
Roles involved at this step: Consistent, open communication helps both to avoid
misunderstandings between the partners and to build
public support for the partnership.
If resource partners with financial

contributions
Activate operation, implement and
monitor in accordance with Trust Fund
requirements and the FAO Guide to the
Project Cycle
All formal engagements including resource partners with

a financial contribution follow a separate monitoring and Actions involved at this step:
evaluation process in accordance with the engagement
implementation, project documents, agreements and risk Follow requirements on reporting in line with the
management plans. In addition, the Partnership Manager FAO Guide on the Project Cycle and communicate
should monitor implementation of the engagement in updates on the CONNECT portal via PSU
accordance with Trust Fund requirements and the FAO
Guide to the Project Cycle.
43
Practical Guide
Reporting results: FAO requirements and results of partnerships. Once the form is completed, it
must be submitted to FAO-CONNECT@fao.org for review,
For MoUs, the Partnership Manager is responsible for editing and publication.
preparing an annual progress report on behalf of the
Contact Lead, detailing the partnership’s activities and
how these contribute to strategic priorities, including
those of FAO, those of the countries where activities take Case study
place and the SDGs. For LoIs, informal narrative reports
on the ongoing discussions should be presented by the Drafting a
Contact Lead/ Partnership Manager on an annual basis communications plan for
to keep PSU informed about the ongoing discussion. For your partnership
all types of engagements with the private sector, results
should be frequently featured on the CONNECT Portal. FAO recently formalized a new engagement with a private
For all project agreements, as described, the FAO Guide sector company. The Partnership Manager, Alejandra, a
to the Project Cycle is to be followed. Programme Officer in FAO’s office in Colombia, wants to
ensure that people both inside and outside FAO are aware
of the partnership and its impact. She meets with her
Ensuring visibility for your partnership: counterpart in the partner company to understand their
communicating results expectations for the visibility of the partnership and to see
if the company has any guidelines for communication and
Communicating the progress of the partnership is key branding that she needs to know about.
to successfully implementing the engagement’s goals
and objectives. It is important to have an idea of who the Together, they agree on the main messages that will form
audiences are and the range of communications channels the basis of any communications about the partnership
that can be used to reach them effectively. The CONNECT and discuss some upcoming opportunities to highlight
Portal team is available to help develop a communications their joint work. Based on this conversation, Alejandra
plan for formal engagements, taking into account the fills in the template for a communications plan, which she
requirements of both FAO and the partner. finalizes with feedback from the communications officers
in her office and in the Regional Office for Latin America
Communications should always address how the and the Caribbean (RLC). She then shares the plan with
partnership will benefit the public and make clear how the private sector team in PSU, so that colleagues at
the partnership supports FAO’s mandate and helps to the local, regional and headquarters level can help her
achieve the SDGs. There are many channels you can use promote her work.
to get your message across, including digital tools, such
as social media, audio, video and web, and print products,
such as brochures, flyers and posters. Presenting your SAMPLE DOCUMENT: TEMPLATE FOR A COMMUNICATIONS PLAN
partnership at an in-person or virtual event is also an To access a template for a communications plan, please
excellent way to generate visibility for the engagement.11 access level 2 of CONNECT Portal. For more information
and to request Level 2 access, please contact FAO-
Once the audience and the communications channels Connect@fao.org.
have been identified, the appropriate communications
content can be developed. Content posted on fao.org or
from FAO’s social media accounts should always adhere
to FAO’s Branding Guidelines, making the content easily
identifiable as FAO’s work. Partners may have their own
branding requirements that should be followed; make
sure to ask for these before beginning to communicate
publicly about the partnership.
USEFUL RESOURCES
Success stories, news, events and resources that have FAO Logo Policy and Guidelines on Logo
been developed in the context of your partnership should Placement
also be featured on the CONNECT Portal. The portal
Social media: Branding guidelines and policy
seeks to provide an overview of FAO’s work with the
private sector in all regions and areas of engagement. It Publications: FAO style
is important to reflect the diversity and breadth of FAO’s
work with the private sector by showcasing examples Publishing at FAO
from the various regions and forms of engagement. On
CONNECT success story form
level 2 of the CONNECT portal, it is possible to download
a form for the submission of stories on positive outcomes Human interest story template (please contact fao-connect@fao.org)
11 See also: FAO (2017) Publishing at FAO: Strategy and Guidance. Rome. Available at: https://www.fao.org/publications/card/en/c/I7429EN/.
44
Practical Guide
Section IV.
Where to get support
45
Practical Guide
Part of a capacity development FIGURE 17: PRIVATE SECTOR

CAPACITY DEVELOPMENT PACKAGE
package
This Guide is part of a wider capacity development
package that includes webinars, videos and e-learning to
steer FAO employees through the engagement process. It
ties in with other resources as part of a blended learning
package, as well as with long-standing FAO resources and
support from PSU, as showcased below.
Many tools can be accessed via CONNECT Portal and are

also part of a learning journey accessible at you@fao.
towards
Mapping tool for Private Sector engagement

Trying to identify more strategic partnership opportunities? The FAO Private Sector Mapping Tool can help!
This simple-to-use tool allows you to understand which private sector entities offer the highest potential as a partner, in terms of value for FAO,
business case and feasibility. Using a set of predetermined questions on complementarity, sustainability practices, and alignment with FAO’s goals,
it walks the user through a simple assessment and automatically assigns the private sector entities analyzed to one of four quadrants, as shown
in the table below. The Mapping Tool provides an intelligent, evidence-based approach to help FAO broaden its network of partners and access new
sources of expertise, with the goal of creating stronger private sector engagements which support FAO’s mandate and result in greater impact
on the ground.This LoI facilitated a discussion towards more concrete engagement opportunities, especially through digitalization initiatives and
digital data alliances, and so FAO is exploring possibilities to sign an MoU with WEF in the near future.
Key:
HIGH
G
F Highly suitable, good candidate
for a partnership
I D
Possibly suitable for partnership
but needs further research
B Not a suitable candidate for

Value to FAO
partnership
C E
Feasibility
A
H Lesser Greater
LOW
WEAK Business case STRONG
46
Practical Guide
Section V.
Annex
47
Practical Guide
FORMS AND TEMPLATES FOR PRIVATE SECTOR ENGAGEMENT

All materials listed below can also be found on the CONNECT Portal in a dedicated area for FAO employees. Access to
this area is granted upon request only; to request access, please send an email with your FAO username (the same you
would use for GRMS) and domain (either FAODOMAIN or FIELD) to FAO-Connect@fao.org.
Partnership Cycle step Form Associated formal agreement template
Step 1 • Concept note/Private Sector Strategy

Engagement Identification and Fit Form
Initiation • Events and Visibility questionnaire
(Please contact FAO-CONNECT@fao.org for
more information on this form)
• Events and Visibility Assessment Form
Step 2 • Request Form for Due Diligence and Risk

Due diligence and risk assessment/ Assessment
management • Request Form for Simple Reputational
Risk Assessment for FAO’s Participation
in Events with the Private Sector
• Impact/benefit and risk mitigation/

management plan (IBRMP) (to be
provided by Due Diligence team)
Step 3 • Letter of intent (LoI)

Negotiation and development of
agreement • Implementation/cooperation
agreement
• Memorandum of Understanding
(MoU)
• Annex to the MoU (work plan)
• Consortium agreement (Please

contact FAO-CONNECT@fao.org for
more information on this template)
• Contribution agreement between

FAO and non-state resource partner
Step 5
• Annual progress report (partnership
Implementation, monitoring and survey) (MoU)
evaluation
Step 6
Reporting and communicating • CONNECT portal story
results
Extensions of and amendments to • Renewal for MoUs/LoIs letter

signed agreements template
• Temporary Extension to the MoU
template
• Amendments to MoU letter template
48
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Practical Guide

How to engage with the

We have to be open to a wide variety of engagements –

Introduction and due diligence screenings to finalization and

This practical Guide is designed to lead FAO employees

Audience/users Designed to provide transparency on and accountability

FIGURE 1. CONNET LEVEL OVERVIEW

Roles and responsibilities

If a formal partnership results from the engagement, the

If the identification of the engagement is taking place within

Role in PS Engagement Applies to Can be performed by Responsibilities

The Head of the Proposing Unit/Formulator is responsible

TABLE 2. FAO ROLES AND RESPONSIBILITIES

1.2 What is the private sector?

This Guide looks solely at private sector engagement.

1.5 How to work with the private sector?

Using common sense throughout the engagement cycle

To explore creative ideas and unusual interactions and

Finally, use soft skills. When pursuing an engagement, treat

You@FAO offers several soft skills and management

In future, a greater focus on engagement with the private

For more detailed information and up-to-date private

2.3 Programme Fit

Ensure strategic alignment with FAO-wide programmatic areas,

Better Better Better

Regional Initiatives for Latin America and the Caribbean (RLC);

FAO’s engagement with private sector partners should

While FAO’s due diligence process examines these

FIGURE 5. OVERVIEW OF PRINCIPLES OF ENGAGEMENT

FIGURE 6: THE UNITED NATIONS GLOBAL COMPACT PRINCIPLES 2.6 Impact

3.1 Introduction 3.2 Overview of the FAO private sector

FIGURE 7. OVERVIEW OF THE FAO PRIVATE SECTOR ENGAGEMENT CYCLE

Impact Programme fit

Step Step Step Step Step Step

Engagement Due diligence and Negotiation and Implementation,

FIGURE 8. SPECTRUM OF PRIVATE SECTOR ENGAGEMENT

Supplier Operational Partnerships Implementation

3.3 The engagement cycle ‒ step by step

3.3.1 Informal engagement

The categories are as follows:

Engagement Due diligence and Negotiation and Implementation, Reporting and

Officer, for regional and

Office, Center or Division

Officer, for headquarters,

Engagement Due diligence and Negotiation and Implementation, Reporting and

• Submit a duly ﬁlled Request Form for

• Submit a duly ﬁlled Request Form for

• Request and receive

• Submit a duly ﬁlled Request Form for

• Request and receive Simple Reputational Risk Assessment

Step 1 Any Contact Lead needs the go-ahead from their

Roles involved at this step:

Participants Private sector participant

Actions involved at this step:

Before confirming his participation, Tarik requests

The use of the FAO logo (or FAO’s name/brand) signifies

be examined by additional FAO actors and must comply

Actions involved at this step: Co-organization

Participants Unit/Formulator will receive a notice from the PWS

Collaborations on FAO publications require the FAO

Submit a duly filled Request Form for If co-organization/co-sponsorship

Receive the simple reputational risk

Based on the results provided, proceed

Submit a duly filled Request Form for