In response to concerns from other stakeholders, Solway Investment Group communicates conclusions out of the Group’s governance and ESG assessment.
Solway Group recognizes the importance of producing and marketing products in a responsible and environmentally friendly manner. We are aware of the increasing environmental and social expectations and requirements coming from international and national regulations, laws and standard setters, but also from our customers, the communities in which we operate, business partners, finance providers, NGOs and other stakeholders.
We have concluded that as first priority we will bring our ESG program to the next level in the upcoming months.
To understand the challenges and shortfalls, Solway Group has invested considerable efforts into assessing ESG risks and issues related to its operations. Amongst these are an internal surveying of the Group assets ESG programs, operational processes and standards by recognized external ESG experts, as well as an audit report on supply chain sustainability conducted by one of the Group’s customers, and assurance procedures from an international audit firm.
Solway has now evaluated the results from the various assessments and audits and has taken these into account for the planning of the necessary remediation measures. Since the first review activities in 2020 Solway has undertaken various steps on the Asset level to close the gaps, in particular at the Guatemalan assets. While these activities did produce good results in some areas, we want to ensure that the whole group achieves that level.
To remediate and close the relevant identified gaps, Solway Group has started a group-led project, supported by internationally leading ESG and Compliance experts, with the aim to:
On the Group level:
1. Establish a process for continuous assessment, monitoring and management of relevant risks, issues, and requirements across all the Group
2. Reinforce our Corporate Governance, including establishing a Group ESG and other required Group functions
3. Establish our corporate business principles for ESG, risk and compliance in the form of a Code of Conduct, applicable to the whole Group, and develop and deploy a coherent set of Group ESG policiesand standards, setting out the specific expectations and requirements for the assets
4. Establish a Group-led ESG strategy and management framework fit-for-purpose to advise, align and assure the Group’s assets on ESG matters, including the “United Nations Guiding Principles on Business and Human Rights” (UNGPs), and relevant Due Diligence Guidance from the OECD
5. Establish the necessary Group ESG review, monitoring, audit, and control processes to over time enable the Group to evaluate and improve the assets ESG performance
6. Reinforce the Group’s external ESG reporting to provide a coherent and accurate reporting to the Group’s stakeholders
On the Asset level:
1. Reinforce asset level operational governance and integrated management systems, designed for and capable to effectively implement relevant requirements, including the Group ESG requirements
2. Further investigate identified gaps and shortfalls in all relevant areas, and define and deploy effective remediation measures with clear milestones and timetables
3. Implement relevant external standards such as – but not limited to – the “United Nations Guiding Principles on Business and Human Rights” (UNGPs), and relevant Due Diligence Guidance from OECD
4. Establish a process to ensure effective coordination with Group, including monitoring, performance review and reporting
We have already started this project. The process of implementation requires time and extensive coordinating efforts from the management at all levels. To ensure effective coordination and implementation, we have constituted an ESG working group (including the Group Legal Director, Group CFO, Head of Communications, and a newly appointed ESG function at Group level, as well as our ESG and Compliance consultants) to oversee the ESG project. The working group meets on a weekly basis to discuss progress, review deliverables, and set the direction. Once the project goes into implementation stage, Solway will be reporting on the progress to the stakeholders involved.
Disclaimer: The above measures may be adjusted and modified within current strategy, Solway will report on the implementation on a regular basis to keep the transparency of the project.