Responsible sourcing consultant for a leading steel producer

Steel beams in a wave shape

Responsible sourcing consultant for a leading steel producer

One of the world’s leading steel producers chose Kumi as its responsible sourcing consultant. The company needed to achieve responsible sourcing compliance, in particular with the requirements of the German Supply Chain Act, the upcoming EU Corporate Sustainability Due Diligence legislation as well as the ResponsibleSteel standard. Kumi was commissioned to identify gaps in the company’s approach to responsible sourcing and to provide targeted recommendations for improvements and, ultimately, compliance.

As a result of our engagement, the company has a clear roadmap for achieving responsible sourcing compliance and has engaged stakeholders at C-suite level on the issue. The company also engaged business units outside of Europe on responsible sourcing compliance, notably to support mining supply chain due diligence in Brazil and North America which are key locations for its iron ore supply.

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Kumi’s approach to building responsible sourcing compliance

To deliver the project, the Kumi’s team of responsible sourcing consultants employed Kumi’s Responsible Sourcing Diagnostic methodology. This included:

  • Reviewing relevant documents, such as policies, procedures, mining supply chain risk data and assessment findings, and interviewing internal stakeholders to develop an understanding of the company’s existing procedures for procurement and responsible sourcing.
  • Developing a methodology to benchmark the data acquired through the document review and interviews against the responsible sourcing requirements set out in the OECD Guidelines for Responsible Business Conduct. The tool used for the benchmark built on our insights as trusted advisors on responsible sourcing policy to the OECD.
  • Holding a series of workshops to build internal capacity on responsible sourcing compliance and to ensure that there was continuous communication about the findings and recommendations with the client.

Progressive and risk-based approach to supply chain ESG due diligence

The final deliverable for the project was a C-suite report that outlined the key findings from the assessment and recommendations for next steps. Among these was a progressive and risk-based approach to supply chain ESG due diligence that would be applicable to assessing both supply chain risks and mergers, acquisitions and investments.

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