Bettercoal in 2018: Operationalise and Grow
Published on February 21, 2018
Coal use is set to stagnate for the coming decade with its share in the global energy mix forecast to decline from 27% in 2016 to 26% in 2022[1]. Europe is reducing its footprint significantly with many countries setting hard deadlines for the end of the use of coal for power, and companies publicly signalling the end of their involvement in coal fired power plants. The US, Canada and even China have seen their demand for thermal coal decline. However, we must remember that coal also serves many other purposes than power generation and that use does not appear to be reducing or undergoing the same challenges.
The difficulty of accessing financing added to a stagnant market has meant that coal mining has received very little significant investment. Some of the large, traditional mining companies have slowly been divesting their coal assets leading to a fragmentation of the coal industry, making it harder to ensure good mining practices are being upheld.
Growing competition for buyers and increased scrutiny from civil society, governments and buyers means that suppliers need to demonstrate their commitment to a responsible supply chain. Bettercoal is uniquely placed to not only serve its Members by assessing their suppliers against the Bettercoal Code, but also by allowing Bettercoal Suppliers to differentiate themselves in an increasingly competitive market.
Supplier Assessment Process (SAP)
Bettercoal will launch the revised Bettercoal Supplier Assessment Process and associated documents in July 2018. During the last two years, Bettercoal has worked intensively with Members and the multi-stakeholder Technical & Advisory Committee to improve the consistency, rigour and transparency of the SAP. Moving forward, coal mining companies who will participate in the SAP will be asked to sign a Letter of Commitment and become a ‘Bettercoal Supplier’, adhering to the process and timelines set by Bettercoal. Once a Bettercoal Supplier has completed the Site-Assessment and Continuous Improvement Plan, they can make an additional claim of being a ‘Bettercoal Assessed Supplier’.
The new Supplier Assessment Process and associated guidance documents will include:
Assessment Manual
Bettercoal Code Review Procedure
Bettercoal Claims and Logo Use Guide
Bettercoal Lead Assessor Approval and Allocation Guidelines
Policy on Association
Alongside the new Assessment Process, a new online platform is also being developed which will provide access to all the information and data relating to Bettercoal Supplier Assessments.
Member’s Implementation and Reporting Obligations (MIRO) Phase 3
The review of the MIRO process and the development of the third and final phase of this verification and reporting system for Bettercoal Members is one of the organisation’s priorities for 2018.
Both Members, Associate Members, Bettercoal Suppliers and selected civil society organisations were invited to contribute with their valuable input to the development of the MIRO Phase 3 new obligations and key performance indicators (KPIs). The process continues now with internal feedback between Members and the Technical & Advisory Committee, aiming to have the final MIRO Phase 3 obligations and KPIs approved by the Bettercoal Board of Directors in June 2018 and officially launched in 2019. More information about the previous reporting phases and reports can be accessed on the Bettercoal website.
New Bettercoal brand and website
We live in a digital era that provides us with the right tools and technologies to become a more efficient, visible, credible and transparent supply chain initiative. A SWOT analysis conducted in 2017 with 24 different Bettercoal stakeholders concluded that the organisation needs to transform itself from a digital and identity perspective. As a result, we have started working on the new Bettercoal brand and website which will be launched during the first half of 2018.
The new Bettercoal brand wishes to focus on the human aspect of the coal mining industry in order to make the initiative better resonate with the majority of our stakeholders. We want to become a pragmatic voice for improvement in the coal sector, speaking with authority, confidence and clarity, yet remaining human and understandable.
We think this will help us communicate with greater transparency and authority and yet clearly differentiate ourselves in the coal sector.
Responsible business is also good business. This is why, in 2018, Bettercoal will continue on its journey to further improve the quality of its Assessments and the robustness of its processes. We will also start publicly disclosing some of the key findings of the Site-Assessments we conduct, as well as work closely with our Members to refine their responsibilities and obligations as actors in the global supply chain. Bettercoal will continue to work with other standards and initiatives to ensure cross recognition. Finally, we hope to continue growing both our membership (utilities, cement, steel manufacturers and any other players in the coal supply chain), as well as the number and geographical coverage of the coal mining companies we work with.
Photo credit: Cerrejon
