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Alignment with OECD Due Diligence Guidance

Bettercoal is committed to demonstrate alignment with the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas ('Due Diligence Guidance'). The Due Diligence Guidance clarifies how companies can identify and better manage risks throughout the entire mineral supply chain, from miners, local exporters and mineral processors to the manufacturing and brand-name companies that use these minerals in their products. It provides management recommendations for global responsible supply chains of minerals to help companies respect human rights and avoid contributing to conflict through their mineral or metal purchasing decisions and practices. Since 2016, the Due Diligence Guidance is applicable to all minerals and global in scope.

As a first step, Bettercoal will update the Bettercoal Code - Provision 5.4 (Conflict-Affected and High Risk Areas) with the policy recommendations as outlined in the OECD Due Diligence Guidance. Over time, Bettercoal will work on aligning other areas of its standards and system with the recommendations in the OECD Due Diligence Guidance. In addition, Bettercoal and its Members will contribute to the development of Mineral Risks Handbook (MRH) once the first draft for public consultation is released. For more information or questions, please contact Marieke van der Mijn

Overview of proposed changes

Please find below an overview of changes that will be sent to the Board of Directors for approval at the Annual General Meeting in June 2017:

  • Page 11: A footnote will be added to Provision 5.4 - Conflict-Affected and High-Risk Areas.
  • Page 11: Proposed changes tot he Provision - see table below.
  • Page 31: OECD Due Diligence Guidance will be added to the list of Acronyms of the Bettercoal Code.

Provision 5.4

Version 1 - 2013

Version 1.1 - 2017

5.4.1

Companies will conduct an assessment to define wether the site is located in a Conflict-Affected and/ or High-Risk Area.

Companies will conduct an assessment to define whether the site is located in a Conflict-Affected and/or High-Risk Area in accordance with the definition provided in the OECD's Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas.

5.4.2

Companies will adapt existing due diligence measures to the specific needs of conflict-affected and high-risk contexts in accordance with the UN's Global Compact Guidance on Responsible Business in Conflict-Affected and High-Risk Areas.

Companies will adapt existing due diligence measures to the specific needs of conflict-affected and high-risk contexts in accordance with the OECD's Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas including coverage of all risk areas articulated in Annex II of the Due Diligence Guidance. Companies' due diligence measures are a continual process in the standard operating of the companies.

5.4.3

 

Companies will develop and implement a policy on Conflict Minerals that is consistent with the principle of the Model Policy articulated in Annex II of the OECD Due Diligence Guidance.

5.4.4

In a conflict-affected and/ or high-risk area, companies will take steps to monitor their business relations, transactions, flows of funds and resources to ensure that they are not providing funding or support to armed actors, who may benefit from revenues generated by the sale of such goods and resources.

Companies operating in or sourcing from a Conflict-Affected and/or High-Risk area will take steps to monitor their business relations, transactions, flows of funds and resources to ensure that they are not providing funding or support to armed actors, who may benefit from revenues generated by the sale of such goods and resources.

 

Transition from Bettercoal Code Version 1 to Version 1.1

Once the Bettercoal Code - Version 1.1 has been approved by the Bettercoal Board of Directors, it will come into effect for all coal Suppliers that are currently in the Bettercoal Assessment Programme: 

  • For coal Suppliers currently in the SAQ process: the updated Code will come into effect at the next Site-Assessment.
  • For coal Suppliers currently in/ lined up for the Site-Assessment stage: the updated Code will come into effect at the next Site-Assessment.
  • For coal Suppliers currently on a Continuous Improvement Plan: the updated Code will come into effect at the next Re-Assessment.
  • For coal Suppliers currently in the Re-Assessment stage: the update Code will come into effect at the next Re-Assessment.

The updated Self-Assessment Questionnaire will be aligned to reflect the changes made to the Bettercoal Code Provision 5.4. Any guidance documents that Bettercoal will develop will make reference to the OECD Due Diligence Guidance.

All Assessors and Suppliers will be notified of the changes made to the Bettercoal Code Provision 5.4.

 

Latest news

01 June 2017

Bettercoal supports its coal suppliers on a continuous improvement path

Bettercoal is based on the core principle of continuous improvement. This means ensuring that all coal suppliers actively participating in the Bettercoal Assessment Programme follow a Continuous Improvement Plan (CIP). These plans are developed following on-site assessments of mining operations against the Bettercoal Code, a code which covers Legal Compliance, Policies and Systems, Business Ethics, Human Rights and Social Performance and Environment. } read on

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