ENERGY AND INFRASTRUCTURE
Responsible sourcing in energy and infrastructure supply chains
Assess risks
Assess risksThe due diligence support we provide to energy and infrastructure clients enables them to identify and prioritise responsible business conduct risks in their supply chain, take appropriate mitigation actions and deploy their risk management resources in the most effective way. This both reduces programme delivery risks and enables management teams to prepare for and comply with the growing regulatory compliance requirements and customer expectations on supply chain due diligence.
- Through a Human Rights Risk Assessment (HRRA), we help energy providers and developers to understand the extent to which a business is impacted by, or may contribute to, human rights or wider social and environmental risks across industry categories and geographies, and, where risks are identified, what mitigation actions may be required.
- We conduct Human Rights Impact Assessments (HRIA) for investors, energy providers and developers to provide an in-depth investigation and analysis of where there have been – or could be – adverse impacts to the rights of workers, communities, or other stakeholders because of business activities in the supply chain.
- We map supply chains for energy providers and developers, working with our technology partners to efficiently build an understanding of the profile, location and relationships through the different levels of a supply chain.
- We conduct site-based due diligence assessments of the environmental, social and governance (ESG) performance of high-risk or strategic suppliers for investors, energy providers and developers against good practice frameworks such as the OECD due diligence guidelines or the IFC Performance Standards.
Build management systems
Build management systemsWe help investors, energy providers and developers to build confidence in the ability of their companies’ risk management performance and readiness for evolving compliance requirements related to supply chain due diligence. We build and implement responsible sourcing risk management systems that are fit for purpose and aligned with international good practices.
- We benchmark the maturity of energy providers’ and developers’ current sourcing practices through our Responsible Sourcing Diagnostic and Maturity Model to assess current performance and readiness for compliance with due diligence requirements such as the German Supply Chain Act and the forthcoming EU Corporate Sustainability Due Diligence Directive, and to prioritise next steps.
- We support investors, energy providers and developers by designing and implementing management systems for responsible business conduct and supply chain due diligence. This includes writing policies and procedures, developing risk assessment and risk management processes, identifying risks when onboarding suppliers and reporting to support compliance with regulatory requirements on supply chain due diligence.
- We benchmark management systems and operating practices for energy providers and their suppliers against the requirements of responsible sourcing standards or assurance frameworks and advise on the steps necessary to close any gaps and pass an audit.
- We support investors in developing, monitoring or independently assessing conditions for Sustainability Linked Loans that are linked to the achievement of responsible sourcing-related targets.
- We implement blockchain-based traceability solutions in energy providers’ and developers’ supply chains and build bespoke supplier engagement and data management platforms with our technology partners to support our clients’ due diligence activities or differentiated product development.
Enhance capability and impact
Enhance capability and impactInformed by our work with the OECD, we support policymakers and industry bodies to establish and strengthen market and regulatory requirements for responsible sourcing. We also help to support the continuous improvement of responsible sourcing management systems and work with stakeholders to create positive impact.
- We draw on our unique experience of working with the OECD and the European Commission, to provide alignment assessments of the energy and infrastructure sectors’ supply chain programmes.
- We deliver strategic advice to industry bodies on supporting their member companies to address responsible sourcing challenges.
- We provide capacity building for industry bodies’ member companies or auditors on responsible sourcing and due diligence best practices.
- We support investors, energy providers and developers in developing and strengthening collaborative programmes for supplier capacity building or for making targeted interventions that address specific sector-wide risks, such as those relating to workers’ rights or raw material production in key geographies.
Case studies
“We’re pleased to confirm that our RMI audit has been successfully completed once again. Kumi’s support throughout the process was invaluable, highly effective and helped us navigate the assurance process with confidence.”
Warit Choovaree, Procurement Director, Thaisarco
“Kumi has been an invaluable partner in Glencore’s journey towards Copper Mark certification at our two assets in the DRC. Their independent perspective brought critical insights, enabling us to proactively identify and close key gaps. The Kumi team demonstrated deep technical expertise and provided targeted, actionable support. Particularly impactful was their on-the-ground engagement with our staff, which helped our asset teams to understand the expectations of the Copper Mark standard and embed these into our operational management practices.”
Frederic Sese, Head of Commercial Partnerships, Glencore Copper Africa
“Kumi has been a valuable partner to Boliden while we have matured our responsible metals and minerals value chain program. They quickly understood our ambitions, delivering detailed and pragmatic advice on a range of critical topics. Their expertise and support have given us the confidence to uphold the highest standards in value chain due diligence, even in complex markets.”
Jessica Möttö, Responsible Value Chain Manager, Boliden
“Kumi helped us better understand the criteria of the Copper Mark for maintaining a sustainable supply chain. Their extensive experience allowed our team to learn how to recognize and address non-conformities with ease. This will enable us to promptly strengthen our management practices. Working with Kumi was very enriching, as we came together to review our processes, we improved our ability to analyse existing risks and adverse impacts in our supply chain.”
Luis Garro, VP Supply Chain Management, Southern Peaks Mining
“Working with Kumi provided us with valuable context and opportunities to broaden our understanding of the complexities surrounding conflict minerals in the semiconductor industry. Our partnership has helped us have more effective conversations with both companies and fellow investors, in a collaborative drive for more transparent supply chains free from social and environmental abuses.”
Christopher McGoldrick, Senior Investment Analyst, Stewart Investors
“Kumi team are pragmatic, logical and no-nonsense. They understand complex supply chains and deliver difficult topics with lucidity and sensitivity. Refreshing to deal with this calibre of consultant, no management speak, deliver what they say they will, on-time and with a smile!”
Emma Tooley, ESG Supply Chain, Emirates Global Aluminium
“Kumi rightly deserve their reputation as leading experts on the practical application of the OECD Due Diligence Guidelines by companies and policymakers.”
Guus Houttuin, former Senior Trade Advisor to the European External Action Service and former Chair of the OECD Multi-stakeholder Steering Group on responsible minerals
“Kumi’s assessment of our current status against the requirements of the Copper Mark was very helpful in enabling us to understand where we need to prioritise our efforts as we work towards achieving certification against this important standard. The Kumi team were a pleasure to work with.”
Jasmine Abrahams, Vice President, Sustainability, Ivanhoe Mines
“The due diligence Kumi delivered was comprehensive, the findings clearly presented, and the recommendations led to practical risk mitigation measures with our supplier.”
Sergio Marini, Director Ethics and Compliance, LVMH
“Kumi evaluated our responsible sourcing program against the OECD guidelines and provided a clear gap assessment with actionable recommendations on how to improve. They quickly grasped our operational and sustainability context, which made it easy to communicate and work with them.”
Sustainability Unit, OneMed
“Kumi Consulting developed an assessment framework for the Maturity Assessment Tool of the International RBC Agreement for the Metals Sector that is objective, practicable and of a sound quality. The framework will assist companies in understanding what is expected from them in the OECD Guidelines.”
Independent Secretariat of the International RBC Agreement for the Metals Sector, Social and Economic Council of the Netherlands
“Trafigura is one of the largest physical commodities trading groups in the world. Kumi has provided Trafigura, as well as its commercial partners, with strategic guidance, technical advice and practical support – often working within challenging environments and always in support of a demanding client.”
James Nicholson, Head of Corporate Responsibility, Trafigura
“Kumi advised us on how to address non-conformances identified during an RMAP audit, providing very clear guidance on how to update and strengthen our company’s responsible sourcing management system and due diligence processes.”
Jamie Beliño, Compliance Officer, Al Etihad Gold DMCC
