XSTRATA COAL

Embedding Human Rights
January 2007 - Present

The brief:
As Xstrata Coal (XC) expands into developing areas, it recognises good human rights management will play an increasingly important role in the company’s commitment to sustainable development. With the goal of respecting, protecting and promoting human rights, XC approached Futureye to provide advice in the area of human rights policy and implementation. We worked with XC to develop clear management guidance for both corporate and site levels on how best to negotiate human rights risks and opportunities. Specifically, XC wanted to improve site awareness of human rights within its sphere of influence, align those rights to existing operational systems, and develop guidance for management.

Background:
Xstrata Coal is a business division of the fifth largest diversified mining company, Swiss-based Xstrata plc (Xplc). It is the world's largest producer of export thermal coal and a significant producer of coking coal, with interests in Australia, South Africa, and Columbia, and potential development projects in Nova Scotia and Mongolia. A clear commitment to human rights is embedded in Xstrata plc’s Business Principles. It states: “We endorse the principles set out in the United Nations Universal Declaration of Human Rights, and strive to reflect and promote these within our business, as well as with those suppliers and customers with whom we do business.” This and other human rights commitments implicit in other company policies and standards needed to be explained in practical terms.

The solution:
Futureye identified XC’s human rights commitments within the company’s existing governance structure to clarify expectations and create a deeper awareness of human rights amongst management staff. As a first step, Futureye undertook an evaluation of XC’s policies and management practices in relation to those of other leading mining houses and relevant international human rights standards. The recommendations led to the development of a revision of existing Health Safety Environment and Community (HSEC) Standards, to address gaps and clarify human rights requirements for Site Managers and Executives.

Futureye then worked with XC to develop a Human Rights Guidance Booklet containing a practical critique of the significance of human rights in the minerals industry including the potential risks and opportunities they present, employee responsibilities related to their implementation, and case studies of best and worst practice on significant issues.  Checklists were also included to assist personnel in planning, implementation, management, monitoring and reporting of human rights-related policies and practices.

Together we designed a pilot two-day training program which was delivered to South African operational management in November 2007, and which is currently being developed into issue-specific modules.

The result:
Xstrata Coal is now in a position to play a leading role within the minerals sector in addressing human rights. A clarified and strengthened governance framework now incorporates key human rights principles relating to ethics and other business principles, standards and systems. The Guidance Booklet provides a practical approach to proactive human rights management, which will increase awareness, appreciation and action throughout the organisation. The foundations are now in place to be able to cascade best-practice human rights processes throughout XC and its management.