Coal Producers short guide to Bettercoal...of the coal supply chain. • Managing your business reputation and your risks. • Benchmarking your performance against an internationally

Working towards a global responsible coal supply chain.

Coal Producers short guide to Bettercoal

Responsible mining is essential to the sustainable growth of our societies. And coal still has a significant role to play in the economy through its multiple uses as a source of energy for electricity generation, steel and cement manufacturing, carbon fibre, mobile phones and even household use. Therefore, it was important to create an internationally recognised standard for the coal mining industry allowing both the producers and the buyers of coal to have confidence and manage the risks in their supply chains.

W H A T I S B E T T E R C O A L ?

Bettercoal is working towards a global responsible coal supply chain. We were established by a group of major coal buyers to promote the continuous improvement of sustainability performance in their coal supply chain. We do this by assessing the performance of coal mining operations against the ten principles of the Bettercoal Code through the Supplier Assessment Process, the results of which Bettercoal Members use in their due diligence processes.

Our purpose is to advance the continuous improvement of the mining and sourcing of coal for the benefit of all people impacted by the coal industry, workers and coal mining communities.

BETTERCOAL

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3 STAKEHOLDER ENGAGEMENT Bettercoal engages with a wide variety of stakeholders through our Technical & Advisory Committee (TAC), actively participating in industry initiatives, in-country workshops, meetings and sector related events. Our Complaints Mechanism is used as a tool for constructive feedback and exchange of information.

1 CONTINUOUS IMPROVEMENT Bettercoal promotes the continuous improvement of coal mining by assessing its Suppliers and of coal sourcing by working with its Members to improve their sustainability practices. Our Approved Lead Assessors engage with Bettercoal Suppliers from the outset of the Supplier Assessment Process and impart their knowledge of best practice throughout the entire process.

2 TRANSPARENCY Bettercoal commits to high levels of transparency by reporting on our Members’ obligations and performance, sharing the high-level outcomes of our Supplier Assessments and publishing all the relevant documentation on the Bettercoal website.

4 RISK-BASED APPROACH Bettercoal follows a risk-based approach in its assurance to increase the efficiency of the Supplier Assessment Process and provides pertinent information to Bettercoal Members on responsible mining practices, while reducing the assurance burden for mining companies.

Coal Producers short guide to Bettercoal

The Bettercoal Code was launched in June 2013 and it is composed of ethical, social and environmental principles and provisions that are relevant to coal mining operations. The Bettercoal Code has 10 Principles grouped in 4 categories: General Implementation Expectations, Business Ethics, Human Rights and Social Performance, and Environment.

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B E T T E R C O A L M E M B E R S

Regular membership is open to major end-users of coal, including energy utilities as well as industrial users such as steel and cement manufacturers.

Associate membership is open to companies and incorporated organisations involved in the coal supply chain as well as their trade associations and other associations representing such businesses.

Branche Organisatie Zeehavens

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H O W D O E S T H E S U P P L I E R A S S E S S M E N T P R O C E S S W O R K ?

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SUPPLIER COMMITMENT The coal mining company signs the Letter of Commitment and becomes a Bettercoal Supplier.

DESKTOP REVIEW An Approved Lead Assessor is located to the Bettercoal Supplier. The Bettercoal Supplier completes the Self-Assessment Questionnaire which is reviewed by the allocated Assessor. The Assessment Scope is finalised and an Assessment Plan for the Site-Visit is developed and shared with the Members.

SITE-ASSESSMENT An on-site visit is planned at the Bettercoal Supplier mine site(s). A detailed Assessment Report is developed and once finalised in consultation with the Bettercoal Supplier, is then shared with Bettercoal Members.

CONTINUOUS IMPROVEMENT The Continuous Improvement Plan (CIP) is finalised and shared with Members. Monitoring the CIP takes place according to timelines identified in the CIP. Verification methods include Desktop Review and Site-Visit. A public report will be uploaded on the Bettercoal website.

Re-AssessmentA full Re-Assessment is due within maximum five years from the coal mining company becoming a Bettercoal Supplier. The process starts from the beginning.

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Coal Producers short guide to Bettercoal

The Bettercoal Assessments are performed by independent third-party Assessors that are selected through a rigorous approval process. Every Assessment is based on the ten principles of the Bettercoal Code, which looks at the management system of a coal mining operation and focuses on issues such as human rights, bribery, corruption, disclosure, workers’ rights, community engagement, pollution, biodiversity and many more.

Bettercoal does not provide a certification of performance to Bettercoal Suppliers.

The Bettercoal Supplier Assessment Process includes the following key components:

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B E T T E R C O A L I M P R O V E O N L I N E P L A T F O R M

Bettercoal IMPROVE is an online platform accessible only to Bettercoal Members, Suppliers and Assessors, allowing access to all the information and reports relating to the Supplier Assessments.

Bettercoal IMPROVE provides the following:

• A centralised secure database allowing Bettercoal Members to connect with their Bettercoal Suppliers, access Assessment data and results, and track and monitor Bettercoal Suppliers’ operational improvements.

• A centralised and automated process for Bettercoal Supplier to complete their Self-Assessment, upload policies and documents, and communicate directly and effectively with Bettercoal Lead Assessors and Members.

W H A T A R E M Y R E S P O N S I B I L I T I E S A S A B E T T E R C O A L S U P P L I E R ?

• Sign a Letter of Commitment agreeing to a set of timelines to undergo the Supplier Assessment Process.

• Agree to your operations being assessed by an independent third-party team of Assessors,

providing them with the required information.

• Commit to reporting regularly on progress against the Continuous Improvement Plan.

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H O W T O J O I N B E T T E R C O A L :

W H A T A R E T H E B E N E F I T S O F P A R T I C I P A T I N G ?

• An assessment of your coal mining operations recognised by all Bettercoal Members and many other utilities, reducing the need for multiple on-site assessments from clients.

• The monitoring and support on your Continuous Improvement Plan allowing you to further improve your operations.

• The right to publicise your company as a Bettercoal Supplier and use the Bettercoal logo in accordance with our logo and claims guidelines.

• Being part of a network of mining companies and buyers committed to the long term improvement of the coal supply chain.

• Managing your business reputation and your risks.

• Benchmarking your performance against an internationally recognised standard.

To start the Supplier Assessment Process and become a Bettercoal Supplier, you simply have to:

• Sign a Letter of Commitment.

• Sign a Confidentiality Agreement.

• Log on to the Bettercoal IMPROVE online platform where you will be able to complete all further steps and access all supporting documentation.

K E Y D O C U M E N T S :

• Bettercoal Code

• Letter of Commitment

• Confidentiality Agreement

• Assessment Manual

Coal Producers short guide to Bettercoal

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B E T T E R C O A L S U P P L I E R S

ColombiaCerrejón Coal CompanyDrummond Company. Inc, Itochu CorpProdeco Group

GermanyRWE Lignite Mining

IndonesiaPT Adaro Indonesia PT Bhumi Rantau Energi

KazakhstanMaikuben-West LLPShubarkol Komir JSC

PolandSiltech

RussiaKuzbassrazrezugol Coal Company OJSCSiberian Business Union CoalSUEK JSCTaldinskaya Fuel & Energy Company JSC Taldinskaya Mining Company LLC

South AfricaCanyon Coal Pty (Ltd) Kangra Coal (Pty) Ltd

United KingdomHJ Banks & Co. Ltd

United StatesConsol Pennsylvania Coal CompanyForesight EnergyPeabody Twentymile Mine

Anne-Claire HowardExecutive Director+44 (0) 7787 411 [email protected]

Marieke van der MijnHead of Standards & Assurance+44 (0) 7756 327 [email protected]

www.bettercoal.org

Irena Popa-AntohiSustainability Manager+44 (0) 7901 581 [email protected]

Gavin RowsonAssessment Process Manager+44 (0) 7966 [email protected]