Affected communities impacts, risks, and opportunities
As a global company with customers active in mining and infrastructure sectors, as well as sourcing of metals and minerals in our upstream value chain, we acknowledge the possible risk that our operations, products, services, and business relationships may impact local communities. In our double materiality assessment, we considered all communities that may be materially impacted by our operations or value chain activities, including communities of indigenous peoples.
The identified material impacts concern communities living near our customers’ sites or those affected by their mining operations, especially in high-risk countries with elevated human rights risks. We recognize that indigenous communities require particular consideration as they may be disproportionately vulnerable due to their close ties to land and natural resources. Our assessment also considered that poor working conditions and labor rights violations can have far-reaching effects, not only harming workers but also impacting the well-being and resilience of local communities, see more in ESRS S2 Workers in the value chain
As Epiroc is one of many suppliers at a mine site our possibilities and means to use leverage is limited. However, doing business ethically is important for Epiroc and we continue to strengthen our due diligence processes through our Responsible Sales Assessment (RSA) process.
We define risk markets using environmental, human rights and corruption criteria from a third-party risk analytics firm. Examples of risks covered are land, property and housing rights, and indigenous peoples' rights.
Material impacts, risks and opportunities
Affected communities’ rights
| If communities in high-risk areas are negatively impacted by customers’ activities, there can be a risk that human rights are not respected | ||
| Potential negative impact | ||
| Downstream | ||
| Short-term | Medium-term | Long-term |
| If communities in high-risk areas are negatively impacted by customers’ mining and infrastructure activities, it can harm Epiroc’s reputation | ||
| Risk | ||
| Downstream | ||
| Short-term | Medium-term | Long-term |
We have customers in around 150 countries, and they need to perform their operations, conduct land acquisitions, manage security and handle environmental impacts in a manner that respects human rights and the well-being of local communities, including indigenous peoples. Potential challenges and negative impacts include community displacement, access to clean water and natural resources, and health issues from chronic pollution. These may arise from systemic problems or isolated incidents, such as environmental accidents or a business partner's disproportionate security response to protesters. If communities are negatively impacted by mining and infrastructure activities and human rights are not respected, it can affect our business by damaging our reputation, leading to customer loss and stock devaluation. Geographically, these risks are primarily located in conflict-affected areas and high-risk regions with a heightened risk of human rights violations. Ensuring that our operations and customers adhere to human rights standards is important for maintaining our market position and customer confidence.