Bettercoal supports its coal suppliers on a continuous improvement path
Published on June 1, 2017
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.
As long as coal suppliers keep demonstrating improvement against the plans developed with Bettercoal, they remain a Bettercoal Supplier. Bettercoal has been active in Colombia for some years, but Drummond Ltd is the only Colombian coal supplier to have completed a Bettercoal on-site assessment. Cerrejón has participated in the form of a Self-Assessment to this date, the first step in the Bettercoal assessment process.
Drummond Ltd’s Colombian mines were assessed in November 2014. This independent assessment report on the mine’s ethical, social and environmental performance indicated that Drummond Ltd.’s operations were in broad alignment with the Bettercoal Code. However, opportunities for improvement were identified and incorporated into a time-bound Continuous Improvement Plan produced and agreed upon as part of this process and that the mining company committed to implement.
In November 2015, independent assessors visited the site to review progress against the CIP through document discovery and through interviews with management, employees, unions and external stakeholders. The process has been one of engagement and continuous improvement. Importantly, it provides the Members of Bettercoal (coal buyers) with robust, objective information that enables them to make informed purchasing decisions.
One area where Drummond Ltd has been reporting improvement is around Social Performance and Human Rights. Following the Site-Assessment, Drummond initiated a Human Rights review process based on the UN Guiding Principles on Business and Human Rights. Drummond Ltd. hired an expert consultant to advise and deliver this program, which include awareness training for employees. In addition, the company is aligning with the Voluntary Principles on Security and Human Rights, coordinating with the government and key stakeholders. In addition to this work, there is ongoing training in Human Rights for security personnel, security contractors and staff. Policies now address the Voluntary Principles, and particularly, Security Staff are very aware and cognizant of the VPSHR and their implications. An expert advisor has been contracted to support the completion of a Human Rights Impact Assessment which has yet to be implemented. And there have been significant efforts to participate pro-actively to support Human Rights standards at a national level.
Following recent news published by PAX, Drummond stated that:
Unfortunately, the NGO PAX misrepresented the words expressed by Enel’s CEO during their Annual General Meetingand thus created confusion among many stakeholders, including Colombian and European media, employees, government officials and communities. As explained by Mr. Starace, “Enel had indeed carried out the assessments, which included safety, environmental and social aspects, as well as a human rights impact component. Enel’s assessments did not find any evidence of human rights violations by the mining companies, and found that both mining companies had a number of sound policies in place.”
Drummond will continue to apply the highest standards to its safety, environmental and social practices, and its committed to respecting and promoting human rights. In addition, Drummond supports the Colombian government´s peace efforts, and unequivocally embraces the principles of a reconciliation procedure based on the reestablishment of human rights and the implementation of political, economic and cultural mechanisms that facilitate the coexistence of all sectors of Colombian society.
Drummond is one of six suppliers who have gone through the Bettercoal Assessment Cycle. They are reporting regularly on progress against their CIP and therefore remain a Bettercoal Supplier. We commend their actions to date and so do all Bettercoal Members.
Photo credit: Drummond Ltd
