How it Works
The Standards Comparison distills over 50 standards commonly used in the materials value chain to their basic requirements in 31 issue areas, and is periodically refreshed to reflect changes in standards requirements. The issue areas relate to the social, environmental and governance issues affecting the extraction and processing of raw materials. In each area of risk a “norm,” or median level of practice as defined in the distillation of standards, has been defined where the propensity of standards have most commonly set their requirements. The “norm” therefore represents the requirement that is most broadly accepted across best-practice standards and certification systems.
The Risk Readiness Assessment covers five categories: Governance, Labor & Working Conditions, Environment, Community, and Business & Human Rights. Each category includes specific issue areas.
The outcome is a detailed comparison, benchmarking each analyzed standard to the norm and indicating where the standard “misses,” “meets,” “exceeds” or “leads” the norm across all issue areas.
Risk Readiness Assessment (RRA)
The RRA applies to any upstream company from minerals or metals processors up to the minerals or metals producers. It includes two main parts: (1) the overview of the company’s profile, and (2) a self-assessed rating across 31 issue areas. The self-assessment compares the company’s own risk practices against the norm defined by the Standard Comparison. Rather than have a focus on compliance, the goal is to recognize good practices where they exist and to encourage, inspire and lead others to adopt them. In addition, use of the RRA fosters improved dialogue with upstream partners on social and environmental issues, including an understanding of where potential risks exist that could impact the resiliency of a supply chain. Download an overview of the RRA and see below for sample survey results.
The outcome of the RRA shows whether the company “misses,” “meets” or “exceeds” the normative benchmark for each of the 31 issue areas. This information can create a rich data set to understand where there are strengths and areas for continued improvement, creating a number of benefits to participants in the supply chain.
Figure 1: RRA Sample Survey Results:
Figure 2: RRA Sample Survey Results Highlighting Areas of Performance & Risk:
For more information, please contact Leah Butler.