MSA STATEMENT

The Statement

This Statement, pursuant to section 54 of the UK Modern Slavery Act 2015, sets out the steps that Lonrho is taking to ensure that slavery and human trafficking are not present in any part of our Group businesses, nor in our supply chains. This is our third annual statement under the legislation.

Overall commitment

Slavery and human trafficking are abuses of a person’s fundamental freedoms and rights. We are wholly opposed to such abuses in our direct operations, our indirect operations and our supply chains.

We are not complacent as to the risks of slavery and human trafficking and we are committed to the continual improvement of our policies, standards, practices and programmes with respect to combatting it effectively.

Our structure and business including supply chains

Lonrho currently has an operational presence in 15 countries, primarily in East and Southern Africa. As at end July 2018, our headcount was 875 employees across those countries and in our headquarters in London, UK. 

 

Our operations take place in those countries through a network of businesses under the core themes of Food Supply Chain Management, Market Expansion Services, and Infrastructure. The Group overall combines a mix of existing business and investments in different countries, including: 

-Port facilities for the oil and gas sector.

-Freight forwarding and logistics management.

-IT provision and network solutions.

-Operating construction and farm machinery dealerships.

-Camp construction, catering and management.

-Seafood processing and trading.

 

Our supply chains vary across those businesses and locations, but we are committed to applying common levels of scrutiny and verification across all Group businesses to ensure that proper controls and standards are in place.

 

Further information on our structure and businesses, including the countries in which we operate, is available at www.lonrho.com

Policies, standards and practices in relation to slavery and human trafficking

Our Group-wide policy concerning slavery and human trafficking is covered in our five core company values:

-Entrepreneurship.

-Integrity.

-Accountability.

-Passion.

-Performance.

These values are set out in our Employee Handbook/Code of Business Conduct for all staff, with the aim of providing a platform for sustainable development across the Group, and the communities of which we are a part.

 

Lonrho have in parallel been Active members of the UN Global Compact (UNGC) since 2012, submitting our most recent annual Communication on Progress (COP) at the end of July 2018. We believe our Core Values closely match the UNGC’s Human Rights and Labour Principles, including:

-The elimination of all forms of forced and compulsory labour (Principle no. 4)

-The effective abolition of child labour (Principle no. 5)

Under the UNGC Labour Principles, Lonrho commits to adhere to the labour practices as per the Constitution in the country of operations, follow the entire stated SOPs that regards recruitment, selection of staff, and procurement of goods and services, and uphold labour standards across the business operations.  This includes employment that is productive and delivers a fair income, one that ensures workplace security, social protection, better prospects for personal development and social integrations. 

Lonrho focuses on non-discrimination, equal opportunities and treatment (including for men and women), and freedom to express concerns. Lonrho respects the rights of women by putting in place non-discrimination and sexual harassment policies and recognizes the importance of women as leaders, consumers, entrepreneurs, workers and caretakers.  Lonrho prohibits employment of children and forced labour.   

Lonrho supports good relationships with employers, contractors and the labour unions that represent them and are vital in attracting the labour resources that the Group needs to maintain operational efficiency and licence to operate.  Lonrho recognises workers’ rights to union membership and collective bargaining, and takes a proactive approach to dialogue with workers and their representatives. 

Lonrho remains committed to and proud of our diversity, employing more than 24 nationalities across our Africa network.  We favour employing local nationals wherever possible, and offer challenging career opportunities regardless of age, ethnicity, religion or gender. 

In addition, the Lonrho Board have agreed the relevance of the UN Sustainable Development Goals (SDGs) to our operations. The Board agreed in January 2016 that as a Group we should support the implementation of four SDGs in particular, including SDG8 on Decent work and economic growth. That gave further expression to Lonrho’s determination to work with others (under SDG Target 8.7) “to eradicate forced labour, end modern slavery and human trafficking”.

Risk assessment and due diligence, and steps to mitigate risk

In addition to the standards set out in the Employee Handbook/Code of Business Conduct at Group level, staff across the Lonrho Group are kept up to date on business and corporate matters through face to face meetings, newsletters (including messages by email from individual Board members), and through a Group-wide intranet. That includes the dissemination of information to all on the principles and commitments outlined above, including regarding the Board and Group’s approach to the UNGC and SDGs. 

We recognise the need for specific additional steps to assess risks in this area, including in our supply chains, and have therefore set up internal systems to ensure that each component business of the Group operates to these collective standards. That included issuing a further questionnaire in 2018 to our businesses to ensure awareness of the issues including:

- Who is making or sourcing a product  that we use, including associated component parts or sub-contractors where relevant;

-All relevant stakeholders including investors, customers, suppliers and contractors.

 

Through this approach we continue to monitor our awareness of risk both in our own businesses and related areas. We consider that the greatest risks are in our supply chains, where relevant to particular businesses – but will continue to monitor and assess all our businesses in this regard. 

 

We will also ensure that risks and compliance in this area are fully factored into future investment decisions, up to Board level.  

Effectiveness and performance review

Our HR processes give us the ability to track issues which may arise, especially through our staff assessment system and speak out procedures. We keep this under active scrutiny.

Training and awareness programmes

Our Chief Legal Officer, working with Human Resources, has the lead on maintaining and developing staff awareness and procedures in this area, reporting to the Board. We ensure that staff compliance training, including at induction, fully covers this area. 

This Statement was approved by the Lonrho Board on 12th September 2018.

Christopher Chambers | Lonrho Executive Chairman