2017 - Due Diligence Compliance Report Archive

Annex: Red/Orange Flag Indication and Follow-up Actions 2017

Red/Orange Flag Indication Description Supplier Materiality Supplier Country Risk Follow-up Action Status
Red Flag Indication:  bribery and corruption linked to cobalt operations Indications of bribery linked to the acquisition of supplier’s mineral assets Material High An official investigation concerning the allegations of bribery in a case dating from 2010 is still pending. Umicore is awaiting the conclusions by official authorities to determine its position against this red flag indication.  The Approval Committee decided to continue the business relation with this supplier in the meantime. Open
Red Flag Indication:  bribery and corruption linked to cobalt operations Indications of  fraud, bribery and corruption  linked to the acquisition of supplier’s mineral assets Material High Umicore reviewed the allegation and contacted the supplier for clarifications. No legal proceedings are pursued against this supplier. Umicore’s review made clear that the supplier is not involved in this case and therefore wrongly accused. The Approval Committee decided to close this case and continue the business relationship. Closed
Red Flag Indication:  bribery and corruption linked to cobalt operations Indications of fraud, bribery and corruption linked to the acquisition of supplier’s mineral assets Material High Allegations of bribery are made by media, however there is currently no investigation by official authorities. Umicore cannot make judgements based on the available information. Umicore will continue to monitor this case and review new information in order to make its assessment. In the meantime, the business relation with this supplier continues. Open
Red Flag Indication:  torture, cruel, inhuman and degrading treatment or punishment Indications that security forces do not respect human rights Material High In 2017, this was no longer an active supplier to Umicore. Umicore is committed to follow-up on this indication (including site-visit) when it becomes again an active supplier. Open
Orange Flag Indication:  hand-picking and/or artisanal mining (as a secondary source) Indication that this supplier is using artisanal mined cobalt raw materials, alongside the materials for Umicore products Material Medium/High This supplier is treating the raw materials that Umicore is delivering for its own products. The materials are produced in dedicated lines and therefore, there is no mixing of raw materials. This is not considered as a risk. Umicore discussed this topic with the supplier and was informed about the mitigation actions that were taken.  Based on the assessment of the mitigation measures, the Approval Committee decided to close this case and continue the business relation with this supplier.
 
Closed
Orange Flag Indication:  healthy and safe working environment A media report indicated the occurrence of a fatal incident in the supplier’s mine. This is an indication for unsafe working conditions Immaterial Low/Medium Umicore discussed this topic with the supplier. Umicore evaluated the mitigation actions taken by this supplier and it is confident that effective steps have been taken to avoid similar incidents in future. The Approval Committee concluded that there are no indications that this supplier does not guarantee safe working conditions to its employees.  The Approval Committee decided to close this case and continue the business relation with this supplier. Closed
Orange Flag Indication:  healthy and safe working environment A media report indicated the occurrence of a fatal accident in the supplier’s processing plant.  This is an indication for unsafe working conditions Material High Umicore visited this supplier to discuss the incident and to evaluate mitigation actions that were taken. Umicore concluded that effective steps were taken and that the supplier is working at the highest standards of occupational health and safety. Based on this information, the Approval Committee decided to continue the business relationship with this supplier. Closed
Orange Flag Indication:  healthy and safe working environment A media report indicated the occurrence of a fatal accident in a part of the supplier’s processing plant.  This is an indication for unsafe working conditions Material Low Umicore will discuss this topic with the supplier. Umicore is committed to evaluate the mitigation actions taken by this supplier to assure that effective steps will be taken to avoid similar incidents happening. Based on its assessment of the accident, the Approval Committee decided to continue the business relationship with this supplier in the meantime. Open
Orange Flag Indication:  healthy and safe working environment A media report indicated the occurrence of a fatal incident in the supplier’s mine.  This is an indication for unsafe working conditions Immaterial Low Umicore will discuss this topic with the supplier. Umicore is committed to follow-up on this indication and make an assessment based on the available information.  Based on its assessment of the accident, the Approval Committee decided to continue the business relationship with this supplier in the meantime.

Open