Arjan Pouw and Kristin Tallbo, Vattenfall: ‘Knowing your risks is crucial’

Why is this Agreement so important for Vattenfall and other companies?

Arjan Pouw (member of the Steering Committee): “No company can tackle today’s challenges on its own. We need to work together to bring more transparency in the supply chain, we need to standardise the due diligence requirements that all companies must comply with. The multi-stakeholder approach helps to build mutual understanding. Discussions may be tough, but they are always amenable. Whether it concerns biodiversity or human rights, our interests ultimately align.”

Kristin Tallbo (a member of the working groups): “There is a disparity when it comes to resources and knowledge among companies. There is a core group of large companies that are active in most of the working groups. The Agreement gives smaller companies, which don't have the same resources, a chance to learn from the bigger ones. So, it is also a learning pool.”

What do you expect from the collective Peru project?

Tallbo: “In discussing collective action, we quickly came to the conclusion that we wanted to do something about copper. We decided to focus on Peru, which is the second or third largest copper producer in the world. Many farmers in Peru are switching from agriculture to small-scale copper mining because of the rise in copper prices due to the energy transition. They are often unofficial or 'illegal' and not paid properly.

Together with the Alliance for Responsible Mining (ARM), we have submitted a project proposal to the European Partnership for Responsible Minerals (EPRM). We hope to launch the project later this year. Our aim is to improve human rights and the environmental impact of artisanal and small-scale copper mining in Peru. Ultimately, the aim is to create a more sustainable and equitable copper supply chain through stakeholder engagement and working groups on the ground there.

Copper is recognised as one of the key raw materials for Vattenfall, and there is a good chance that we do have copper from Peru in the products that we use to generate electricity. It would be great to launch two more projects as part of our five-year Agreement, one of which could involve nickel from Indonesia.

It is important that the companies in the agreement have a seat at the table in these collective projects and are involved on the ground as well. If there is stakeholder engagement in Peru, we should be there to build on knowledge within the company. In particular, for example, concerning the inclusion of vulnerable groups. How do you make sure that women are involved? How do you involve indigenous groups? We also need to raise people’s awareness of the kinds of risks that are very real and why we need to work together on them.”

What are your priorities for the second year of the Agreement?

Pouw: “The first year was marked by a lot of energy, a lot of activity, a lot of effort. We should keep up that momentum, even though the number of participants is still growing. The second year is about delivering results, as in: the outcome of the first assessment, the impact of the incentives on tendering and purchasing, the implementation of projects that are in the pipeline. We should aim to share the lessons learned from due diligence. Not only within our own company, but also among other companies, organisations and further initiatives in Europe or even beyond. Not to impose our Dutch way of working with Agreements, but to show what a multi-stakeholder approach can achieve. Together, we are taking international responsible business conduct to the next level.”