Final evaluation: Metals Agreement has potential for follow-up
Parties to the International RBC Agreement for the Metal Sector have concluded five years of cooperation. The Agreement has increased companies' awareness of due diligence, risks in the value chain and sustainability legislation and regulations. Not all objectives have been achieved, but the results provide an important basis for further cooperation.
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Final evaluation
The parties concluded the Metals Agreement on June 18 at Wuppermann Staal Nederland. The final evaluation shows that companies and civil society organisations have appreciated the exchange of knowledge about working methods in the metal sector and risks in the value chain. In addition, a lot has been invested in building networks and developing tools, such as the self-assessment tool and the risk matrix. In this way, the Agreement helps companies with the implementation of new sustainability legislation such as the Corporate Sustainability Due Diligence Directive (CSDDD) and the Corporate Sustainability Reporting Directive (CSRD).
Collective projects
The added value of collaboration became apparent in recent years during collective projects. Tata Steel Netherlands and the CNV Internationaal trade union worked together to improve working conditions and health risks in mines in the Andean region (Peru and Bolivia). This opened doors to both companies and employees that would otherwise remain closed. Krommenhoek Metals and Global March Against Child Labour started a project to gain in-depth insights into the risk of child labour in the metal recycling value chain in India. The Metals Agreement played a crucial role in providing a framework for cooperation with NGOs and representatives of local communities. Furthermore, Nyrstar found a knowledge partner through the Agreement in IUCN NL to carry out the 'double materiality analysis' for the CSRD reporting.
Year five
The annual report for year five was published at the same time as the final evaluation. In the last year, companies were supported in their due diligence through various knowledge sessions about the updated OECD Guidelines, biodiversity, supply chain transparency, risk prioritisation and the CSDDD. A broad group of companies from the raw materials sector was reached via the Due Diligence Roadshow, a practical two-day training. In addition, a risk matrix has been developed with an overview of the due diligence risks for 39 raw materials in the metal sector. Companies also conducted the annual due diligence self-assessment. The target for companies to achieve an average due diligence score of 80-100% in year five has not been achieved. In practice, due diligence in the metal sector appears to be a complex process in which companies encounter obstacles that cannot be resolved immediately in the short term.
Future
The parties are motivated to continue the collaboration in the future. The wish is to involve more companies and civil society organisations in the Agreement and also to enable small companies to carry out the due diligence process. More attention will also be paid to recycling and circularity. A task group will further shape the Metals Agreement 2.0 in the coming period. In the meantime, companies can continue to use the tools developed within the Agreement, with which they can further prepare for due diligence legislation and comply with the OECD Guidelines.