Case Study: Environmental, social and governance risks in coal sourcing

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Outcome

Our work led to an industry-wide set of principles for UK coal importers and enhanced sourcing practices in the companies directly involved and later to the development of the BetterCoal Initiative.

At the request of the Basic Services Human Rights Network (Centrica, Scottish Power, EDF Energy, E.ON, RWE Npower, Thames Water and Severn Trent), twentyfifty initiated a project in the UK energy industry to build understanding of the environmental, social and governance (ESG) risks involved in the sourcing of coal.

Risk assessment - On behalf of SSE, Scottish Power and EDF, we undertook an assessment of the ESG risks present in the key countries sourced from including Colombia, Russia, South Africa and Australia, and the existing practices of energy companies and coal traders to manage these risks. Stakeholder engagement - This involved engagement with the companies, the coal suppliers/traders such as Noble, Glencore and Cargill, and local organisations in country.

Senior-level engagement - The findings, including best practices, were presented to a broader industry group including the majority of UK energy companies and a number of European companies including Dong Energy, Vattenfall and Nuon. We also developed board-level briefings for a number of companies, including Nuon.

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