OREANDA-NEWS. April 23, 2012. Eight major players in the European energy market announced Wednesday 18 April the formal establishment of Bettercoal, a global initiative to promote the continuous improvement of corporate responsibility in the international coal supply chain.

 The initiative has been set up by founding members DONG Energy, EDF, Enel, E.ON, GDF SUEZ, RWE and Vattenfall, and aims to support on-the-ground changes to the benefit of workers, communities, businesses and the environment. Nordic energy firm Fortum has also joined Bettercoal as its first new member.

 Joachim Lochte, Chair of the newly established Bettercoal Board of Directors said:

 “As major global users of coal, our members are keenly aware of the potential negative impact of mining activities, particularly for those who live and work close to the mines. We need greater assurance that our coal is coming from mines that are taking a responsible approach to protecting workers, communities and their local environment. This is why we have established Bettercoal – it’s a long-term investment that will initially focus on improving business practices within the mines themselves, and we’ll be doing this through engagement with stakeholders including mining companies and operators.”

 As a first key step, the initiative is now developing a new code of practice that will build upon existing mining standards and recognise current best practice in the industry. The Bettercoal Code will set out the ethical, social and environmental principles and provisions that members expect their coal supply chain to align with, and will be the basis for performing regular on-site assessments by independent 3rd party assessors. The results of these assessments will be shared between the members of Bettercoal.

 “There have long been standards related to the mining industry generally but it’s clear that there are some inconsistencies in what coal users expect of suppliers in terms of on-the-ground performance,” Joachim Lochte continued.

 The Bettercoal Code is being developed with support from an independent Stakeholder Advisory Group made up of experts from civil society, trade unions and the mining community. It will be subject to a global public consultation process that will be launched later this year.

 The initiative is open for membership to major coal users from anywhere in the world, including energy utilities and industrial players such as cement manufacturers and steel makers. Initially, its focus will be on mines that supply the international markets however the Code, tools and experiences will be made available for the benefit of stakeholders worldwide.

 The appointment of an Executive Director to head up Bettercoal is expected shortly.