Anti-Bribery and
-Corruption (ABC)
Program Design.

Pannónia Golf & Country-Club, near Budapest, Hungary, Richard Brutyo

Situation

The client, due to violations of the US Foreign Corrupt Practices Act (FCPA) in prior years, agreed with the US Department of Justice (DoJ) into a Deferred Prosecution Agreement (DPA). A DPA is an agreement reached between a prosecutor and an organisation to avoid criminal charges in exchange for the company's commitment to abide by the dictates of the DPA, including financial penalties and remedial measures. DPAs can run for several years and can be accompanied by an independent monitor deployed by the DoJ.

Approach

The remedial measures – under the supervision of an independent Compliance monitor – included the design and effective implementation of a fully-fledged compliance management system, following the United States Federal Sentencing Guidelines, designed to prevent and detect violations of the US FCPA.

Under the lead of n-sure international, we supported the client with establishing a working oversight and governance structure; the development of a periodic risk assessment process; the development of a Code of Conduct and relevant underlying policies and procedures; the design, communication, rollout and dissemination of appropriate training materials; the design of a dedicated allegation & investigation, and consultation process; the design of a dedicated processes for Third Party Management; and finally the design of appropriate internal controls, and monitoring and testing processes.

Client Benefits

Having established a fundamental corporate culture and making compliance an integral part of the company's DNA, the client was able to finally conclude the DPA. Today there is an effective Compliance Program in place, that meets the standards and expectations of regulators and other stakeholders and additionally serves as a significant differentiator in an increasingly complex, challenging and competitive market place.

ESG Assessment
& Program
Development.

Kampung Biru Arema, Jodipan, Malang, Indonesia, Rewardy Fahmi

Situation

The client has become the target of different NGO campaigns, focusing on the human rights situation in a Latin American country and alleged wrongdoings in this context, of which many are in fact legacy issues. Additionally, the company was facing increased public scrutiny and was in involved in heated political debates, and confronted with government expectations and new regulations on corporate responsibilities.

Acknowledging that the current approach in managing and communicating on its Environment, Social and Governance (ESG) performance was no longer fit for purpose, the company decided to thoroughly assess the situation and develop approaches for an improved ESG performance and stakeholder engagement.

Approach

In phase 1, ENEMCO, in a consortium with partners, assessed the current situation and shortfalls in managing ESG, and developed a stakeholder communication and engagement concept, with concrete measures, plans, and steps to effectively engage with key stakeholders. This included recommending concrete communication and engagement steps and measures to support the company's public profile and position to build trust and begin meaningful dialogs for resolution.

In phase 2, the consortium made concrete recommendations to establish a Group-led ESG management framework that can guide, advise and align the assets on relevant ESG matters and ensure effective implementation of Group-level ESG commitments across the entire organization.

Phase 3 involves the build and implementation of the ESG program.

Client Benefits

The project will provide the client with a much-improved approach to managing ESG across its operations, notably to ensure adherence to the United Nations Guiding Principles on Business and Human Rights (UNGPs). Additionally, it will help to establish a good level of accountability based on accurate and aggregated information at the Group-level (covering all assets), providing the basis to inform internal and external stakeholders and the general public in a consistent and credible manner.

Expert Study
on Gold Import
and Human Rights

Different types of soil, Northeastern Kenya, U.S. Geographic Survey

Situation

Switzerland is an important trading and refining venue for gold, and as such is also exposed to risks related to potential human rights violations along the value chain of the imported gold.

This is why in 2017 the Swiss Government commissioned an expert study to analyze the trade of gold produced under (potential) human rights violating conditions and – in so for as it affects Switzerland – to examine the full range of measures that could be taken in Switzerland to improve this situation.

The main objectives of the Expert Study were to provide a stakeholder map of the gold trading sector in Switzerland and an overview of the risks and potential challenges related to human rights violations in the context of gold production and trade, as well as derive concrete recommendations for improvement.

Approach

Together with Consortium partners, ENEMCO was an author of this expert study, which included the following steps:

• A risk analysis of the Swiss gold industry, and determination of potential risks of human rights violation along the value chain;

• An analysis of the current legislation, existing Swiss legal framework for gold trading (import and refining) and relevant international regulation, soft law and industry self-regulation;

• An analysis of standards used in the gold industry to prevent human rights abuses, such as those from the LBMA or the Responsible Jewelry Council;

• An inventory of projects and measures realized by public and private sectors in Switzerland which may impact the human rights situation in the production of gold;

• An analysis of existing Swiss customs procedures and the current statistical framework from a human rights perspective.

Client Benefits

This Expert Study enabled the Swiss Federal Council to develop concrete recommendations, complementing also the Federal background report on commodities ("Grundlagenbericht Rohstoffe"), which beside the significant economic and fiscal importance of the commodities branch also identified such challenges, namely regarding human rights risks, environmental issues and corruption. The key findings also were taken into consideration when developing and discussing implementation of other relevant Swiss strategies and initiatives to prevent and mitigate human rights violations, such as the National Action Plan for the Implementation of the United Nations Guiding Principles on Business and Human Rights (UNGPs).

Health & Safety
Program Redesign.

Construction site in Sulaymaniyah, Iraq, Saad Salim

Situation

The client had experienced a significant, above industry average number of critical incidents (including fatalities) across its operations. The newly appointed CEO requested ENEMCO to undertake an assessment of the circumstances, investigation of outcomes and reporting of fatalities, and a redesign and development of an industry leading HSE program.

Approach

Our assessment provided an analysis and evaluation of all identified fatal incidents that occurred in the last 6 years in the client’s mining and operating divisions. The assessment focused on the nature and quality of Incident Investigation Policy and Methodology, Reports and Results.

Based on the findings, we supported the client with defining a strategy, roadmap and ambition level (initiatives, plans, resources, commitment) to transform towards a responsible and performance driven organization aligned to industry leading practices in HSE management.

Key findings and specific recommendations in the primary topic areas included:

• Development and deployment of enhanced Group Level Document Packages for Incident Managing, Reporting and Investigation of HSE Incidents, including a ‘model’ HSE Handbook for use by front-line managers and supervisors;

• An analysis to understand the necessary business capabilities and determine the required capacities to deliver competent root cause analysis;

• An evaluation of a representative Mining/ Operational Site’s system of HSE Risk Management;

• A corporate-level HSE Management Strategy & Roadmap for submission to, and acceptance by the Board.

Client Benefits

Based on a strong and authentic commitment, the client’s top management will lead and support all efforts required to ensure that HSE management ‘requirements and expectations’ are articulated, coherent and well-structured to provide reasonable assurance that HSE risks and impacts are understood, and controls are consistently implemented and verified as effective.

• Specific efforts were defined and dedicated towards the following:

Embed HSE risk management as a core organizational process;

• Achieve a substantial cultural transformation towards an operational environment that is defined by ‘line management’ accountability and ownership for HSE management;

• Fulfil all legal obligations as required by the respective laws and regulations;

• Design, develop, implement and operationalize a risk-based HSE management strategy – aligned to leading practice – that meets the standards and expectations of regulators, investors and shareholders, and other stakeholders and additionally serves as a significant differentiator in an increasingly complex, challenging and competitive market place.

Sustainability
Strategy
Development.

Harvesting grain, Barton, United Kingdom, Shaun Coward

Situation

The client, a global whole sale retailer, wanted to review and overhaul its current approach to sustainability. Although highly successful in its business, the company felt that the developments in the field of sustainability, such as new regulations and shifting consumer trends and expectations, were at such pace that it needed to better understand the landscape with its risk and opportunities in order to have the ability to respond to these developments strategically and tactically in the right way.

Approach

ENEMCO supported the client with a thorough assessment of their current approach to sustainability. This phase consisted of a review of all corporate documentation in terms of strategy, policies and guidelines, programs and procedures, a competitor benchmark and as structured interviews with all relevant corporate functions to incorporate the internal view and make use of the accumulated knowledge within the organization.

We delivered an in-depth assessment report with all findings and conclusions and ran a workshop with the members of the Executive Committee.

Based on the results, ENEMCO issued a final report which served as the main input for developing a long-term sustainability strategy for the client.

Client Benefits

With this project, the client was able to develop a new sustainability strategy and approach, incorporating key learnings from:

• Current market and social developments;

• Regulatory and political developments;

• Benchmark from competitors;

• Internal know-how and views.

Due Diligence
in Investing.

Salt industry, Lac Rose, Senegal, Curioso Photography

Situation

The client, an internationally operating investing company engaged ENEMCO to conduct a phase 1 and 2 ESG due diligence on a prospective investment into a battery metal mining project to fully understand the applicable legal requirements and ESG stakeholder expectations and identify and understand material ESG integrity factors, risks, impacts and opportunities to enable an informed and defensible investment decisions.

Another objective was to identify in particular those ESG issues that may have a material negative impact (i.e., legal, financial, reputation), require major allocation of capital or other resources, or have a material impact on commercial timelines.

Approach

We developed for the client a comprehensive ESG review and due diligence process and investment framework determining how ESG is being considered throughout the investment cycle, together with more specific templates, tools and technical checklists.

The ESG Due Diligence Process consisted of 2 phases, leading to the systematic incorporation of ESG factors into the investment decision, with each phase including an assessment and evaluation of relevant ESG factors, with defined objectives, activities, and outputs in the areas of:

• ESG strategy & management approach

• ESG technical issue management

• Governance, risk and compliance

• Management commitment, capacity and performance

Our report summarized key findings, gaps, contributing factors, causes and significant and reportable issues, advised on recommended management actions and identified and addressed significant and reportable issues.

Client Benefits

The final outcome of the ESG DD process was a report with findings and recommendations. A particular focus was placed on the identification and further handling of potential significant issues, for example:

• significant impacts relating to the absence of, non-compliance with or inadequate ESG management practices and controls

• serious or systematic breaches relating to non-compliance with or inadequate ESG management practices and controls

• serious or systematic breaches relating to governance, risk or compliance matters including bribery or corruption

• serious or systematic human rights violations such as forced labor

• serious legacy issues, or situations where a material damage has already occurred or will likely occur (e.g., environmental pollutions, spills, excessive emissions, etc.)

The report provided an analysis of relevant ESG issues, risks, impacts relative to the client’s risk acceptance criteria. Although the due diligence identified a range of reportable issues, the conclusions was that they could be resolved post deal, and regulated as specific requirements in the investment agreement.

The report furthermore – in the area of Health & Safety – identified a range of gaps that needed immediate executive management attention and proposed specific remediation measures, together with a timeframe for instituting corrective action, prioritization of these actions for completion, and an estimate of related cost.

© 2024 by Enemco LLC, all rights reserved