| Twerwaneho Listeners’ Club and Clouds Fm & Holcim SA | |
|---|---|
| Lead NCP | Switzerland |
| Supporting NCP(s) | |
| Description | Specific instance alleging a non-observance of the OECD Guidelines. |
| Theme(s) | General policies, Disclosure, Environment, Taxation |
| Date | 3 Aug 2023 |
| Host country(ies) | Uganda |
| Source | NGO |
| Industry sector | Construction |
| Status | Concluded |
| Summary | Read the Initial Assessment published 31 January 2024: English On 3 August 2023, Twerwaneho Listeners’ Club and Clouds Fm, a Ugandan NGO, submitted a specific instance to the Swiss NCP alleging that Holcim SA, a Swiss-based building material company, had not observed the General Policies (Chapter II), Disclosure (Chapter III), Environment (Chapter VI), and Taxation (Chapter XI) provisions of the Guidelines. Issues concern alleged insufficient transparency as well as lack of environmental and human rights due diligence in relation to the actions of Holcim SA’s subsidiary, Hima Cement Ltd, a cement manufacturer in Uganda. According to the submitters, the mining of pozzolana, a volcanic rock, causes severe environmental damage and thus affects the agricultural yields of the local population. In addition, the submitters raised concerns about declared mineral quantities and tax avoidance. On 31 January 2024, the Swiss NCP published an initial assessment deciding to accept the case for further examination. The NCP made an offer of mediation to the parties involved. However, as of November 2023, Holcim SA announced its decision to divest itself from Uganda and sell its shares of Hima Cement Ltd. The NCP decided to delay the offer of mediation and reassess the situation when and if the divestment was completed. On 7 March 2024, the NCP was informed of the conclusion of the divestment by Holcim from its investments in Hima Cement. On 16 July 2024, the NCP published a final statement concluding the process at the request of the submitter as their requests had been forward looking and were no longer relevant for mediation. The NCP nevertheless welcomed the constructive engagement by both parties in the specific instance process. #Stakeholderengagement #DisengagementandDe-risking #Riskmanagementsystem #DueDiligence #EnvironmentalDisclosure #ESCR #Pollutionandwastemanagement #Naturalresources #Degradation #TaxAvoidance #Materials #Mining #Localsubsidiary |
