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Ethan Ijaz

Consultant

CASE STUDIES

LME responsible sourcing requirements for a multinational zinc producer


LME requirements for a multinational zinc producer

A multinational zinc producer and LME-listed brand commissioned Kumi to strengthen its supply chain due diligence management system to comply with the London Metal Exchange’s (LME’s) responsible sourcing requirements. Kumi worked with the client to review the company’s procurement processes, control systems for material traceability and supply chain transparency and analyse due diligence policies and procedures to identify gaps and good practices.

Recommendations

We found that information requested through the client’s existing KYC and due diligence processes only focused on core compliance issues and didn’t capture key ESG risks, particularly concerning conflict-affected and high-risk areas.

We worked with our client to expand the scope of its supplier screening process in line with industry best practice and, after proactively engaging with the LME to adjust compliance track (switch from track C to track A), the client established a formal CAHRA procedure.

Thanks to our client’s efforts to address discrepancies with the exchange’s responsible sourcing requirements, the LME has granted additional time to make the necessary and meaningful improvements before next year’s Track A deadline.

The Outcome

As a result of our work, the client demonstrated a clear pathway towards compliance and avoided losing its approved member status. As an LME-listed brand, the company has maintained business relations and worked constructively with suppliers to improve due diligence processes. Our client is also now better positioned to manage identified risks across its geographically diverse supply chain.

Ethan Ijaz

Consultant