Effective management of health, safety, environmental and community (HSEC) risks, impacts and performance is widely recognised as an integral component of running a successful business. Nonetheless, many companies continue to face significant challenges in this area, particularly when it comes to business operations in emerging economies where regulatory enforcement may be lacking and general standards of HSEC practice amongst organisations lower than in more advanced economies.
For multinational companies, a common challenge is driving the effective implementation of HSEC management practices and corporate standards across operations in multiple countries. It is important that management are able to maintain effective oversight on risk mitigation and sustainability performance.
For private equity investors seeking to invest in companies in emerging markets, understanding environmental, social and governance (ESG) risks is a critical component of due diligence prior to making an investment decision. Strengthening ESG management in investee companies is an important means for investors to realise additional value upon exiting their investment.
At Kumi we have extensive, practical experience of developing, implementing and auditing HSEC management systems, processes and performance. We are familiar with management frameworks such as the IFC Performance Standards and reporting standards such as the Global Reporting Initiative. Our operational performance services include:
- Pre-investment ESG due diligence for investors.
- ESG performance improvement support for investors, helping investee companies to develop, implement and improve their HSEC management systems, processes and performance.
- Providing independent assessments of HSEC performance for companies, either independently or alongside internal risk management functions such as internal audit.
- Supporting operational business units of multinational companies in implementing corporate policies and standards for HSEC management.
- Designing and implementing data collection, management and reporting processes that integrate operational business units into wider company-wide performance monitoring and reporting activities.