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Responsible Supply Chain
Implementing The Guiding Principles of The United Nations Framework for Protection,Respect and Remediation;
OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas
Chinese Due Diligence Guidelines for Responsible Mineral Supply Chains
Enterprises Identify and Address the Worst Forms of Child Labor Practices in the Mineral Supply Chain
Due Diligence System
All companies involving in the process of extraction, trade, transportation, minerals use and related products as well as companies participating in the mineral resource supply chain in accordance with Chinese Due Diligence Guidelines for Responsible Mineral Supply Chains shall implement a risk-based five-step due diligence framework for the supply chain. The specific requirements and procedures of due diligence will vary depending on the node of the enterprise in the supply chain, but all include a five-step due diligence framework into the enterprise management system before reviewing and screening suppliers and making purchasing decisions. Through project practice, Huayou Cobalt also puts forward suggestions for improvement of the OECD international guidelines on due diligence management. We believe that we should not only tease the supply chain map to avoid risks, but also carry out implementation projects together with stakeholders to solve the root causes. This process is called the sixth step of due diligence system.
Establish Strong Company Management System
Identify and Assess Risks in the Supply Chain
Design and Implement A Strategy to Respond to Identified Risks
Carry Out Independent Third-party Audit of Smelters/Refiner’s Due Diligence Practice
Report Annually on Supply Chain Due Diligence
Huayou's Community Intervention Projects
Artisanal Small-scale Mining System
Artisanal and small-scale mining refers to a mining operation in the process of exploration, mining, processing, transportation and other activities which are carried out formally or informally in a simple manner. ASM generally has low capital intensity and adopts high labor - intensive technology. Artisanal miners employ a large proportion of the Congolese workforce who are extremely poor, which makes them vulnerable to income shocks. If we stop buying from artisans, even temporarily, it will directly affect tens of thousands of families who depend on artisans, and it will indirectly affect hundreds of thousands more of that families. In view of this special situation, Huayou Cobalt co., ltd. has carried out field research and cooperation with relevant parties to gradually establish a Artisanal Small-scale Mining System.
The due diligence guidelines require that enterprises at certain points in the supply chain should be audited by an independent third party for their adopted due diligence practices, which can be reviewed through an independent institutional mechanism. When an enterprise expects to identify key links through a complete and clear risk assessment of its supply chain, it should consider key links in the industry and specific resources. Since cobalt supply chain due diligence system has been implemented from 2016, Huayou has successively cooperated with RCS Global, Liz Muller, DNV GL and other independent third-party audit institutions to carry out the audit activities of responsible supply chain management , so as to evaluate the effectiveness due diligence system, and find out the existing problems and make continuous improvement.
Responsible Cobalt Initiative
The Responsible Cobalt Initiative (hereinafter referred to as the "Initiative") is a multi-stakeholder alliance voluntarily initiated and established by the upstream and downstream enterprises of the global cobalt supply chain and relevant institutions. The Initiative adheres to the principles of "equality, development, inclusiveness and transparency".
Huayou has always attached great importance to the social responsibility of enterprises and supply chain, and adhered to the principle of "where you invest, you should make contributions to the local area". Huayou has created a lot of taxes and jobs in Congo (DRC) and promoted the local economic development; provide labor protection supplies for employees to ensure their operation safety; concern for the well-being of local staff; assist in the construction of community infrastructure and improve the basic service capacity; the investment constructs the agriculture demonstration garden, and promotes the local agriculture development.