Responsible supply chain

As a KGHM Group we are committed to the highest standards of products’ manufacturing, business ethics and business conduct in our day to day operations. We follow these rules in our value chain creation process, which is reflected in the KGHM Group Code of Ethics.

KGHM is fully aware that the selection of responsible suppliers is crucial for conducting activities oriented towards sustainable development.

To ensure the highest standards regarding obtaining metals from conflict-affected and high risk areas, KGHM has adopted risk-based due diligence, which allows to identify high-risk business relationships based on the criteria set out in the The OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas, The LBMA Responsible Gold Guidance, The LBMA Responsible Silver Guidance and Joint Due Diligence Standard for Copper, Lead, Nickel and Zinc implemented in KGHM’s Smelting/Refining Divisions.

We do not tolerate, support, contribute to or benefit from:

  • any forms of torture, cruel, inhuman and degrading treatment,
  • any forms of child labour or of forced or compulsory labour,
  • minorities discrimination,
  • violations of international humanitarian law,
  • war crimes, genocide or any crimes against humanity,
  • violating the rights of indigenous peoples,
  • money-laundering and financing of terrorism,
  • all forms of corruption and other activities related to economic crime, including financial fraud,
  • degradation of cultural and natural heritage sites,
  • violating health and safety rules,
  • violating the right of association,
  • other serious human rights abuses.

Three divisions of KGHM Polska Miedź S.A. – Cedynia Copper Smelter, Głogów Copper Smelter, and Legnica Copper Smelter – hold Copper Mark certificates awarded by The Copper Mark on the basis of cyclical audits conducted by an independent auditor approved by The Copper Mark. The Copper Mark certificate is a highly regarded international recognition in the mining and metals industry, confirming that copper production is carried out in accordance with the highest environmental, social, and governance (ESG) standards. Verification of each facility’s compliance with Copper Mark requirements is based on several dozen detailed criteria covering, among others, environmental protection, occupational health and safety, respect for human rights, responsible supply chain management, and stakeholder engagement. By obtaining certification and through the publication by The Copper Mark of reports confirming compliance of KGHM Polska Miedź S.A.’s facilities with Copper Mark requirements, we strengthen our transparency and credibility towards customers, business partners, and investors.

KGHM have formalized our responsible supply chain management system by approval of “KGHM Group Responsible Supply Chain Policy”, “KGHM Gold Supply Chain Due Diligence Procedure” and “Due Diligence Procedure For Copper And Lead Supply Chain at KGHM Polska Miedź S.A.”

The system is audited on a regular basis by a 3rd party.

Links:

LBMA Responsible Gold Guidance

LBMA Responsible Silver Guidance

OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas

Participating Sites - The Copper Mark