CASE STUDIES

Managing social risks: Middle East aluminium company

Kumi supported an aluminium company to enhance its capability to identify and manage social risks across its operations. This built on the support we previously gave our client in developing a responsible sourcing strategy aligned with the London Metal Exchange (LME) and Aluminium Stewardship Initiative (ASI) requirements.

Following this, our client recognised the need to address social risks in its business and committed to developing a management system that adhered to international best practices, including SA8000, local legislation, and other relevant standards. We recommended using the SA8000 as a foundational framework to build the company’s capacity for effective social risk identification, ensuring the company’s readiness to implement robust management practices moving forward.

Building our client’s capabilities

The team leveraged insights from our previous engagement with the client, our extensive experience in enhancing companies’ social performance capabilities, and our expertise in conducting Human Rights Risk Assessments (HRRA). To meet the company’s requirements, Kumi:

Identified social risks: Kumi mapped the company’s operations and supply chains, understood the jurisdictions in which they operated, and analysed internal and external documents to identify applicable social risks.
Assessed management systems: Kumi evaluated the company’s existing policies, processes, and methods for identifying and managing social risks within its operations and supply chains. This involved document reviews and remote and in-country interviews with relevant stakeholders. Our approach enabled us to map the company’s internal management structures and processes, ensuring the development of a tailored system.
Developed a gap assessment report: Kumi reviewed areas for improvement and provided recommendations to rectify these gaps. This report was accompanied by a management systems manual, outlining step-by-step processes for establishing a system to identify, manage, and monitor social risks.
Delivered a multi-stakeholder workshop: We conducted a workshop for senior leadership to explain the new system and ensure relevant employees understood their roles and responsibilities.

Outcomes and strategic integration

As a result of our work, senior leaders gained clear insights into current practices for managing social risks. Our recommendations and implementation support have positioned the company to align with international best practice standards.

The company is now better equipped to meet regulatory requirements, and downstream buyer and stakeholder expectations, ensuring long-term sustainability and ethical operating practices. In addition, the company is working to extend the social management system to other business units and subsidiaries.