Acting honestly and ethically is central to the way we do business and we have the same expectations of our suppliers
HOW WE MEASURE OUR PERFORMANCE
Director
Independence
Director
Tenure
Our Approach to doing business responsibly
We are dedicated to maintaining the highest levels of ethical standards in the conduct of both our and our supplier’s operations and ensuring robust corporate governance systems are in place to promote better economic, social and environmental outcomes.
The Board is responsible for setting the right tone and monitoring that our corporate values are reflected in our behaviour with the support of its committees and through management reporting.
Responsibility focus areas
Code of conduct
As a foundation of everything we do, all employees and suppliers must comply with our Code of Conduct. The Code is supported by various policies, which cover a broad range of issues including:
- All forms of anti-corruption
- Money laundering preventing
- Anti-bribery
- Interaction with public officials
- Whistleblowing
The Code of Conduct embodies the following values and behaviours:
- Treating all dealing with the business fairly
- Ensuring compliance with all applicable laws
- Avoiding conflicts of interest
- Behaving with honesty, integrity and in line with professional ethics
- Prioritising health, safety and protection of the environment
- Safeguarding commercial confidentiality and the Company’s assets
- Behaving with professionalism and a sense of responsibility including to our communities
Our Code of Conduct applies to all our suppliers (including security providers), as they are also required to comply with the specific standards outlined in our updated Supplier Code of Conduct.
Compliance with the Company Code of Conduct is sought through a number of initiatives, such as the Compliance Integrity Programme, the HOC Compliance Podcast in Brazil, the Internal Legal and Compliance Portal, and constant training for all staff on the Company's policies and values. For instance, in 2023, 40 employees were trained on the identification, assessment and prevention of money laundering, terrorism financing and corruption. In total, 138 hours of training were provided.
Advocacy for Positive Change
We responsibly engage with policymakers, practitioners and civil society to meet regulations, participate in approval processes and meet increasing stakeholder expectations. Furthermore, we actively participate in mining associations in the countries where we operate in, such as the “Sociedad de Minería, Petróleo y Energía” in Peru, the “Cámara Argentina de Empresarios Mineros” in Argentina, as well as the Confederação Nacional da Indústria (CNI) in Brazil.
Responsible Supply Chain Management
We work closely with our suppliers to ensure we are part of a value chain that respects and remedies human rights issues and promotes positive sustainability outcomes. For this reason, suppliers are required to comply with our Code of Conduct.
We prioritise ethical decision-making when purchasing goods and services and promote the safe production, use, recycling and disposal of metals and their products to ensure responsible production.
We also ensure we meet all regulatory obligations whilst also responding to the increasing demand from our customers for assurance that the metals they buy are produced responsibly.
Risk Management
The management of the Group’s operations and the execution of its growth strategies are subject to a number of risks, which, if realised, could adversely affect the Group's performance. The Group’s risk management framework is based on continuous monitoring of the prevailing environment, the risks posed by it, and the evaluation of potential action to mitigate those risks, all tackled through the international framework COSO and regularly monitored by our Risk Committee. Accordingly, we conduct a risk assessment of all current and potential operations, addressing areas such as corruption, labour standards, human rights, health and safety and environmental concerns.
Additionally, in line with our Code of Conduct, we conduct preventative due diligence of all new business partners and closely monitor 100% of the entities with whom we have commercial relationships, to ensure that we engage only with those that share our corporate values. The process includes an in-depth background investigation into any potential illegality, including corruption, money laundering or terrorism financing.
Moreover, we conduct preventative due diligence of potential new operations through our advisors, focusing on ESG factors such as health and safety, human rights, labour standards, environmental impact and community relations. As Hochschild has never acquired any operating assets, the scope is limited in nature. We contract with our own suppliers through our own established procedures once operations commence.
2023 highlights
Directors considered to be Independent (2022: 66%)
Winner of EMIN award (Mining Excellence) in Peru
Retained the Anti-Bribery Certification from Entrepeneurs for Integrity
