Austria's lead office for promoting business sustainability, the National Contact Point for Responsible Business Conduct (NCP), has demonstrated strong promotional engagement and notable expertise in supporting EU regulatory developments, including the Corporate Sustainability Due Diligence Directive (CSDDD). Nevertheless, the NCP faces ongoing challenges relating to staffing capacity, its perception of impartiality, and managing timelines in its case-handling, according to a new peer review by the OECD.
This latest OECD review finds that the Austrian NCP has shown strong commitment to carry out its principal missions, promoting the OECD Guidelines for Multinational Enterprises on Responsible Business Conduct (the Guidelines) and addressing complaints brought against companies. Caseload increased in recent years, signaling growing trust in the process.
To ensure continued effectiveness, all NCPs must undertake periodic peer reviews. The Austrian NCP commented that "The OECD Peer Review has been a valuable and constructive opportunity to reflect on the work of the Austrian National Contact Point through the exchange with peers from other adhering countries. The findings underline how the NCP's contribution to responsible business conduct supports enterprises in addressing complex challenges, maintaining trust and remaining robust and competitive over time, thereby strengthening economic performance and delivering broader benefits for society."
The Austrian NCP's institutional set-up provides access to relevant expertise and policy processes. The NCP is set up as a distinct unit within the Federal Ministry for Economy, Energy and Tourism and supported by a Steering Committee (LAUS) composed of ministries, stakeholders, and experts.
Stakeholders appreciate the professionalism of the NCP unit and value the LAUS as a connection point with diverse stakeholders. The NCP unit handles cases free of influence from its hierarchy, but this practice is not formally defined. Combined with the location of the NCP in the Ministry of Economy, this has affected the perception of impartiality among some stakeholders. Staff resources, currently one position filled at 80% with occasional reinforcements, have also raised concerns that the NCP may not have sufficient resources to keep up with growing caseloads.
The NCP has shown excellent practice when promoting the Guidelines, supported by a two-year promotional plan with dedicated resources. This practice has increased the visibility of the NCP and the Guidelines among Austrian stakeholders. Stakeholders highly praised the events organised by the NCP, noting they connect various stakeholder groups, foster constructive discussion, and provide concrete, practical insights.
The NCP's location within the Ministry of Economy has also positioned it well to support RBC-related policy, with staff actively involved in EU legislative processes and periodic reviews of the UN Human Rights Council. The NCP further supports and engages with the export credit agency, the development bank, and interministerial coordination on the 2030 Agenda.
The NCP supports companies and stakeholders in resolving concrete sustainability issues, by facilitating mediation to resolve grievances against companies. While the NCP has successfully mediated agreements between parties, it has not consistently kept within indicative timeframes. The NCP could contribute stronger its expertise on sustainability issues during the mediation process and in its statements.
The peer review recommends that the Austrian NCP:
- strengthens the perception of impartiality
- increases staff resources to keep pace with the growing caseload
- considers strategies to reach beyond its existing stakeholder networks, for instance through a stakeholder mapping
- uses its expertise to provide detailed statements containing analyses and recommendations in line with the Guidelines, and seeks ways to keep within indicative timelines
- continues its engagement with the policy community to promote more complete alignment of Austrian policies with the Guidelines.
The NCPs of Bulgaria and Spain led this peer review. Austria is invited to report on follow up on these recommendations to the OECD in one year.
The OECD Guidelines for Multinational Enterprises on Responsible Business Conduct (the Guidelines) are the most comprehensive international standard to align activities of business with the needs of society. The Guidelines are backed by 52 governments in the OECD and beyond, which are required to establish a National Contact Point for Responsible Business Conduct, a unique domestic body to promote the Guidelines and resolve cases brought against companies as a non-judicial grievance mechanism. To ensure continued effectiveness, all NCPs must undertake periodic peer reviews.
For further information, please contact: RBC@oecd.org
