Responsible value chain

Our approach

Responsible sourcing

Our approach to responsible sourcing is built on a partnership model with our suppliers that aims to minimise health, safety, environmental, human rights, and other social risks. We aim to work only with suppliers with strong values and standards of conduct and that share our commitment to lawful business practices. Our expectations of suppliers are outlined in our Code of Business Conduct (Code) and Sustainability and Business Conduct – Minimum Supplier Requirements. We aim to work with suppliers that demonstrate standards and behaviour that are consistent with our Code.

Our Code sets the standards of conduct that we expect of our employees, Directors and executive management, contractors, suppliers and joint venture partners acting on our behalf in a South32 controlled or operated joint venture.

Risk assessment and tiering tools help us understand supplier risks and guide us in the implementation of an appropriate supplier management approach. We work with our Business Integrity team and other experts to identify supplier risks and opportunities and establish evaluation and due diligence criteria, as well as risk-based control activities. These inform our management approach, with specific requirements agreed with suppliers and integrated into supplier management plans.

Suppliers of services are inducted through our contractor management process, which was set up to strengthen safety and performance of our contracting partners. The process outlines clear supervision, accountability, and performance requirements and provides the basis for operational audits through our stewardship program against our internal contractor management standard.

Responsible marketing and product stewardship

Our approach to the stewardship of our commodities relies on accepted best practices for their handling, transportation and use. We are guided by the ICMM Mining Principles, particularly Mining Principles: 1 - Ethical Business, 2 - Decision making, 3 - Human Rights, 8 - Responsible Production, and 10 - Stakeholder Engagement, as well as industry bodies and commodity associations relevant to our products. These include the International Manganese Institute, the International Lead Institute, the International Zinc Institute, the International Aluminium Institute, the Aluminium Stewardship Initiative, the Australian Coal Industry Research Program and the National Alliance for Advanced Transportation Batteries.

Through our management systems and internal audit processes, we assess, prevent or mitigate potential environmental, health and safety risks to our people and communities. This ensures that the resources we produce are properly managed when in our control and we work with other stakeholders in the supply chain to promote responsible use of our products after they have left our control.

As part of our commitment to the safe stewardship of our traded commodities, we maintain up-to-date safety data sheets (SDSs) based on the latest available criteria and testing. The SDSs outline the products’ health, safety and environmental aspects to allow their safe and responsible use. For products where chemical safety assessments are required by law, we also supply exposure scenario information to our customers, which covers risk management measures for the identified uses of our products.

Enterprise and Supplier Development

We support the development and growth of small, medium, and micro enterprises (SMMEs), which contribute to the South African economy as it transitions towards fair economic distribution and the alleviation of poverty. We aim to work with an increasing number of Black-owned suppliers and support them to progress beyond the 51 per cent level of Black ownership defined by the South African Broad Based Black Economic Empowerment Codes. We identify existing and potential suppliers to support socio-economic development in local communities.

Our supplier partnerships comply with our operational Social and Labour Plans, the Broad-Based Black Economic Empowerment Act, 2003, Mining Charter, 2018 and the Minerals and Petroleum Resources Development Act, 2002.

We hold local supplier events to highlight opportunities and provide development programs that help small businesses become procurement ready, increase sales, build competitiveness and enter the value chain of large companies, including South32.

We continue to provide training to SMMEs to help to meet their needs, providing training on financial management, corporate governance, health and safety, human resources and modern slavery.