CASE STUDIES

Helping a client achieve LME Responsible Sourcing compliance

Large piles of mined materials, being stored in a warehouse

Helping a client achieve LME Responsible Sourcing compliance

Our client is a global multi-metals producer and processor. The client commissioned Kumi as its responsible sourcing consultant to strengthen its capacity to comply with the London Metal Exchange’s (LME’s) Responsible Sourcing requirements for its brands.

As a result of our engagement and, especially, our collaborative style of working, the client achieved compliance with the first LME Responsible Sourcing reporting stage of 30 June 2022.

Multiple piles of rock materials in a warehouse

Achieving LME’s Responsible Sourcing compliance

To achieve LME Responsible Sourcing compliance, clients can choose to follow one of:

‘Track A’, an LME-OECD aligned assessed metals standard.
‘Track B’, completion of a red flag assessment followed up with an LME-approved auditor.
‘Track C’, completion of a red flag assessment, reviewed by the LME.

Due to the client sourcing directly from ‘conflict-affected and high-risk area’ (CAHRA) countries, which triggers red flags for the LME Responsible Sourcing requirements, we concluded that the most appropriate track was ‘Track A’, aligning its processes with the Copper Mark’s Joint Due Diligence Standard.

Kumi’s approach to creating a responsible sourcing management system

Kumi’s responsible supply chain consulting team:

Reviewed the client’s existing responsible sourcing documents and management systems to identify gaps and areas where processes could be strengthened.
Interviewed with key staff to understand existing business systems and processes to ensure a smooth implementation of the responsible sourcing system.
Drafted relevant policies, documents and procedures to ensure LME Responsible Sourcing compliance and the OECD Guidance.
Drafted an accountability framework to ensure visibility and ownership of the responsible sourcing system.
Developed an audit guide to prepare the client for an upcoming audit.
Developed a capacity building programme to ensure the company was prepared to undertake all tasks relating to the responsible sourcing system.
Developed a due diligence report in line with ‘Step 5’ of the OECD Guidance.