International Responsible Business Conduct
The Dutch Metallurgy Industry Association VNMI is the trade association of Dutch producers of raw metals and metal alloys and semi-finished products. These are companies that release pure metals from metal ores and re-use collected recycling materials.
The VNMI, Dutch Ministry of Foreign Affairs and Economic Affairs, SER and NGOs such as Terre des Hommes, UNICEF, CNV International, FNV, Action Aid and Save the Children are in a process to jointly reach a covenant for International Responsible Business Conduct (IRBC agreements).
IRBC agreements metallurgy industry
Inducement
KPMG carried out an IRBC Sector Risk Analysis on behalf of the Ministry of Foreign Affairs. In it, the Dutch metal-electrical sector is labeled as ‘risky’ because negative effects on people, the environment and the economy can occur in the supply chains of this industry. For the Dutch Metallurgy Industry Association (VNMI), this led to exploring the possibilities for an IRBC covenant with the government and civil society organizations.
General considerations
On the one hand VNMI wants to take its social responsibility and strengthen and expand existing efforts of the sector in the field of CSR. On the other hand, VNMI wants to reduce IRBC-related economic risks for the sector or create new opportunities. VNMI strives for synergy with, among other things, policy on Socially Responsible Procurement, scarce and conflict minerals, circular economy and innovation.
Specific considerations
VNMI uses the following insights and considerations for the ultimate covenant:
- The primary purpose of the agreement is that VNMI members will develop and implement an IRBC policy. This policy consists of an IRBC risk analysis (due diligence) and, to the extent feasible, efforts to prevent or reduce any risks encountered (Plan of Approach). Starting point for the risk analysis are the ‘OECD Guidelines for Multinational Enterprises’ and the ‘UN Guiding Principles on Business and Human Rights’.
- In the IRBC policy of the members, supply chains will be central. These may consist of ores and concentrates, secondary raw materials (secondary metals and metal scrap) and / or all kinds of other auxiliary substances and products (chemicals, fuels, machines, etc.). Because in these supply chains issues and action perspectives to tackle possible issues per company differ greatly, members should have the freedom to ‘tailor’ their IRBC policy themselves.
More information about this topic can be found on the VNMI website: http://www.vnmi.nl/
