The value of the certification journey [Part 2]
As more companies are moving towards certification, driven by LME requirements, downstream pressures, or other factors, the choice of certification-whether it’s The Initiative for Responsible Mining Assurance (IRMA), Copper Mark, LBMA, or any other-becomes crucial. Here are my three golden rules for navigating this process effectively.
1. Choose a high-quality auditor—even if it costs more upfront
Certifications are a significant investment, not just in terms of memberships and auditor fees but also in the resources required to prepare for them. This includes the internal staff time and effort devoted to meeting the necessary standards.
Unfortunately, many companies are tempted to cut corners by opting for the cheapest auditor or, worse, one known to overlook crucial details. This is a trap that can lead to costly consequences.
Once I came across a company that opted for an auditor on the basis of price, without doing thorough due diligence on the auditors past work. The result was a never-ending cycle of clarifications and revisions, which wasted significant staff time—time that could have been spent on more valuable company initiatives.
Also, the lack of expertise from the auditor meant that the company missed out on valuable learning and improvement opportunities. If your company’s operations are to be scrutinised, make sure it’s worth the effort by choosing an auditor who can genuinely add value.
2. Be patient—don’t make public commitments until you’re ready
It’s easy to make a public commitment to certify all your assets by 2025. The challenge lies in getting them ready for that. Often, companies approach Kumi in urgent need to prepare them for certifications setting unrealistic timeframes. While we’re good at what we do, we’re not in the miracle business! Achieving certification, particularly when it involves building team capacity, takes time.
I strongly advise companies to conduct a thorough gap analysis before making any public commitments. Understand your current state and develop a realistic roadmap for closing those gaps.
Publicly committing and then failing to meet your targets is not only embarrassing, but it can also damage your credibility.
3. Understand the impact of certification commitments on the operations — and make operations teams part of the journey.
One of the most challenging aspects of certification is managing the impact on operations. Too often, I encounter staff who are frustrated because the “ESG matters” are preventing them from doing their jobs – and hitting their targets. Not too long ago Kumi was commissioned to undertake due diligence on a mining company on behalf of an LBMA refiner. Of the two days spent with the mine company, half of it was in the company’s offices, kilometres away from the mine operation, because the company was concerned that the assessment would distract the team from their job.
Understanding the impact of certification—both in terms of time and changes in the scope of operational teams—is crucial. For instance, we recently benchmarked a company’s performance against Copper Mark’s Criterion 10 (supply chain due diligence). Although the ESG team led the certification process, the procurement department, whose primary focus is ensuring the mine has the necessary goods and services, was responsible for managing this sub-criterion. Implementing Copper Mark required the procurement team to dedicate significant time to our project and, moving forward, to developing and implementing policies and procedures. Was this extra time accounted for in their budget and annual targets? Probably not.
To ensure success, it’s essential to understand and factor in the impact on all departments involved, ensuring they have the time and resources needed to meet their performance goals.
The certification process, though rewarding, demands a significant investment of time and energy. Success hinges on making strategic decisions from the very beginning. Engage auditors who can genuinely add value to the process, go public only when you’re confident in your ability to achieve the certification, and carefully consider the impact on all stakeholders involved.
