Techtronic is exposed to human rights risks through the cobalt mining process, a key mineral in batteries that power wireless appliances. Initially, it did not have a dedicated cobalt procurement policy, and Federated Hermes Limited perceived the company to have insufficient disclosure of its supply chain management methods and performance indicators. In addition, they felt there was more the company could do regarding setting emissions reduction goals. Over the course of their engagement, they have seen progress in the company’s policies and targets. The company implemented a procurement policy for cobalt that required its suppliers to disclose the source of cobalt use in the manufacturing of its products.
Federated Hermes Limited continue engagement on the setting of a resolute target for Scope 3 emissions reduction, and improving board composition and effectiveness with the company. They will push on strengthening governance and oversight at Techtronic, particularly after recent criticism of the company by a short seller.
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