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19.08.2024 New Publication: “Guidance for Disclosure on Human Rights Due Diligence in Mining Sector Procurement”
Local procurement by the mining industry in production countries holds significant potential for development impacts through the strengthening of a sustainable local economy and job creation. It also enhances skills, technological capacities and generates tax revenues. Consequently, promoting local procurement has been a priority for BMZ for several years.
“Engineers Without Borders Canada” (EwbC), with their Mining Shared Value (MSV) program, is a key institution in advancing sustainable local procurement. With support from the Sector Program Extractives and Development, they have developed comprehensive procurement guidelines: the Mining Local Procurement Reporting Mechanism (LPRM) (External link), a publicly accessible framework with the goal to increase transparency in procurement in the mining sector and create more business opportunities for suppliers from communities of producing countries.
Recently, EwbC has significantly expanded these guidelines. The new addition specifically aims to address human rights risks in the procurement of goods and services in the mining sector. It helps mining companies comply with existing due diligence obligations in the supply chain and prevent human rights violations through good practices.
It is a positive development that laws and regulations in countries where global mining companies are based have been increasingly strengthened in recent years, obliging companies to implement human rights due diligence (HRDD) in their supply chains. Examples include Canada, Australia, the United Kingdom, and the European Union with the Corporate Social Due Diligence Directive (CSDDD). Mining companies must demonstrate that they do not purchase products and services from suppliers that present human rights risks or fail to address them. However, this is challenging when sourcing goods and services from suppliers that pose risks such as forced or child labour.
The new publication by EwbC highlights regulations, voluntary standards in the mining sector, and ESG evaluation criteria, as well as the potential challenges this development poses for local suppliers. It also provides insights into upcoming guidelines for HRDD reporting. The modular guide assists companies in complying with new due diligence laws and the numerous sustainability standards in the mining sector, fulfilling legal and standard requirements while enhancing ESG performance.
Various companies have already reached out to EwbC to receive advice and recommendations on due diligence implementation. By disclosing human rights risks, companies can achieve their procurement goals transparently and responsibly. The document contains all the necessary information for compliance with laws and standards related to due diligence in procurement and guides companies toward full compliance.
For more information, please contact Tim Schlösser (External link).