Buying Coal from Colombia » Taking stock of 6 years of engagement 2012–2018 2 Buying Coal from Colombia › Acknowledgement › Contents Acknowledgement The preparation of this report was coordinated on the part of twentyfifty by Luke Wilde, Emily Richards and Sulema Pioli and on the part of EnBW by Lothar Rieth, Dirk Keller and Karin Kolbe. Furthermore, we would especially like to thank Simone Droll, Katharina Klein, Bruno Luycx, Reinhold Repple and Stefan Webers (from EnBW), Guy Wilson In addition, we would like to thank the people working (from twentyfifty) for the entire preparation and com- for the companies Drummond and Prodeco and for pilation process and without whom the completion their detailed feedback on earlier draft versions. They of this study would not have been possible. The same supported the research on-site and gave recommen- applies to the help of CREER, where Viviana Arango, dations for dialogue partners in Colombia. Camila Miranda and Luis Fernando de Angulo provided us with their extensive expertise and active The authors of this study would also like to express support in particular during the on-site research. their appreciation to all interviewees (governmental, non-governmental), especially in Colombia – in Cesar as well as in Bogotá – for their willingness to take part in discussions and thus support the realisation of this study. For this study, information up to spring 2019 was researched, reviewed and discussed. The study was published at the end of July 2019. 3 Contents Preface I (by EnBW) .......................................................................................................................................................4 Preface II (by twentyfifty ltd.) ........................................................................................................................................6 Executive Summary .......................................................................................................................................................8 1 This Analysis .......................................................................................................................................................12 1 . 1 Introduction ..............................................................................................................................................................12 1.2 Background ..............................................................................................................................................................12 1.3 Objectives of the analysis ........................................................................................................................................13 1.4 Analytical frameworks used ...................................................................................................................................14 2 The operating context .............................................................................................................................................18 2.1 Colombian history ....................................................................................................................................................18 2.2 The department of Cesar ........................................................................................................................................ 20 2.3 Coal mining in Cesar ............................................................................................................................................... 22 2.4 Economic development in Cesar ........................................................................................................................... 24 2.5 Governance and oversight challenges of the mining sector in Cesar ................................................................ 27 2.6 Impact of conflict and the role of paramilitary groups ........................................................................................ 29 2.7 Peace agreement .................................................................................................................................................... 30 2.8 Land restitution and victims in Colombia ..............................................................................................................31 3 EnBW’s engagement to date ..............................................................................................................................32 3.1 EnBW, its strategy and use of coal ......................................................................................................................... 32 3.2 The world coal market and Colombia .................................................................................................................... 34 3.3 Developing EnBW’s strategy for responsible coal sourcing ............................................................................... 35 3.4 Stop buying coal from Colombia or continuous engagement ............................................................................. 37 4 Development of Mining Companies’ Due Diligence practices ..........................................................................44 4.1 Corporate due diligence requirements ................................................................................................................. 44 4.2 Progress in implementing due diligence practices ............................................................................................. 46 4.3 Summary ................................................................................................................................................................. 55 5 Progress in addressing impacts 2012-2018 in Cesar .......................................................................................58 5.1 Health and safety ..................................................................................................................................................... 58 5.2 Collective Bargaining and engaging with trade unions ....................................................................................... 62 5.3 Tackling violence ..................................................................................................................................................... 64 5.4 Environmental and health impact ..........................................................................................................................69 5.5 Resettlement ........................................................................................................................................................... 73 5.6 Living conditions & social investment ................................................................................................................... 77 5.7 Summary ................................................................................................................................................................. 82 6 Overall Conclusion ..............................................................................................................................................84 4 Buying Coal from Colombia › Contents/Preface EnBW Preface I by EnBW Dear EnBW stakeholders, dear readers, On the basis of various trips to Colombia, a multitude of stakeholder consultations, the analysis of extensive Since 2011, we have been committed to the responsible information from our suppliers and the compilation procurement of hard coal. We have also continuously of external data, we have attempted to present as expanded our activities. The EnBW Executive Board accurate a picture as possible of developments in the has adopted a Code of Principles that place clear central human rights issues in Cesar. In the process demands on our coal suppliers, and our sustainability of developing the study, it became clear that this broad department has established a Sustainability Registry methodical approach has its limits, as figures, data, for our coal suppliers together with the trading facts and objectifiable information are not available in department. We have always sought direct dialogue all of the subject areas examined (occupational safety, with our suppliers and established an open, critical freedom of association, safety, environmental and and constructive basis for discussion. At regular health protection, resettlement and living conditions). intervals we have also visited Colombia to get our This has been made more difficult by the fact that own picture of the working and living conditions in the increasingly – due to the growing number of visits by mining regions. In addition, we have met regularly with foreign guests and the large number of interviews NGOs in Europe and Colombia to exchange information carried out – the interviewees often answered in on current developments. somewhat stereotyped patterns, so that the added value of these statements regrettably decreased. After more than seven years of engagement, we have decided to review our overall approach and clarify Generally speaking, the overall results are whether, and to what extent, we have made progress encouraging, although not all are fully satisfactory. on the ground in the mining regions. In doing so, we This relates to the internal structure and organisation want to make as concrete a contribution as possible of the mining companies, how and where issues of to the debate on working and living conditions in the human rights responsibility and sustainability