Why the manufacturing sector needs to step up on bribery and corruption
89 percent of board-leve...
Global law firm Eversheds has launched a report looking at how businesses are responding to bribery and corruption. It found:
- 89 percent of board-level executives in the manufacturing sector have identified bribery or corruption in their organisation
- 51 percent admit their anti-bribery policy does not work
- 30 percent do not conduct anti-bribery due diligence as part of M&A activity
The company added:
With corruption and bribery at the forefront of the international news agenda due to May’s David Cameron-hosted international anti-corruption summit, a new report from Eversheds reveals that 89% of board-level executives in the manufacturing sector have identified bribery or corruption in their organisation, but the majority don’t understand their company’s anti-bribery policy, with 51 percent admitting that their policy does not work.
The government is once again proposing a corporate ‘failure to prevent economic crime’ offence. It will be a massive game-changer for prosecutors like the UK SFO, as it will make it far easier to prosecute corporate wrong-doing. Many companies in manufacturing will be concerned that they could be held criminally liable for failing to prevent not just corruption (which is already caught under the UK Bribery Act) but all types of economic crime like money laundering, fraud, tax evasion and cyber security breaches.
So, how should businesses in manufacturing make sure they’re doing all they can in the name of compliance? Particularly when dealing with international markets that may pose higher bribery risk?
With 43 percent of manufacturing busineses saying their approach to bribery is inappropriate for their business, Neill Blundell, head of the fraud and investigations group at Eversheds, explores the findings of its ‘Beneath the Surface’ report, and discusses how companies in the sector can successfully mitigate the impact and incidence of bribery and corruption.
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Ultium Cells LLC/Li-Cycle: Sustainable Battery Manufacturing
Ultium Cells LLC - a joint venture between General Motors and LG Energy Solutions - has announced its latest collaboration with Li-Cycle. Joining forces the two have set ambitions to expand recycling in North America, recycling up to 100% of the scrap materials in battery cell manufacturing
What is Ultium Cells LLC?
Announcing their partnership in December 2019, General Motors (GM) and LG Energy Solutions established Ultium Cells LLC with a mission to “ensure excellence of Battery Cell Manufacturing through implementation of best practices from each company to contribute [to the] expansion of a Zero Emission propulsion on a global scale.”
Who is Li-Cycle?
Founded in 2016, Li-Cycle leverages innovative solutions to address emerging and urgent challenges around the world.
As the use of Lithium-ion rechargeable batteries in automotive, industrial energy storage, and consumer electronic applications rises, Li-Cycle believes that “the world needs improved technology and supply chain innovations to better recycle these batteries, while also meeting the rapidly growing demand for critical and scarce battery-grade materials.”
Why are Ultium Cells LLC and Li-Cycle join forces?
By joining forces to expand the recycling of scrap materials in battery cell manufacturing in North America, the new recycling process will allow Ultium Cells LLC to recycle cobalt, nickel, lithium, graphite, copper, manganese and aluminum.
“95% of these materials can be used in the production of new batteries or for adjacent industries,” says GM, who explains that the new hydrometallurgical process emits 30% less greenhouse gases (GHGs) than traditional processes, minimising the environmental impact. Use of this process will begin later in the year (2021).
"Our combined efforts with Ultium Cells will be instrumental in redirecting battery manufacturing scrap from landfills and returning a substantial amount of valuable battery-grade materials back into the battery supply chain. This partnership is a critical step forward in advancing our proven lithium-ion resource recovery technology as a more sustainable alternative to mining, " said Ajay Kochhar, President, CEO and co-founder of Li-Cycle.
"GM's zero-waste initiative aims to divert more than 90% of its manufacturing waste from landfills and incineration globally by 2025. Now, we're going to work closely with Ultium Cells and Li-Cycle to help the industry get even better use out of the materials,” added Ken Morris, Vice President of Electric and Autonomous Vehicles, GM.
Since 2013, GM has recycled or reused 100% of the battery packs it has received from customers, with most current GM EVs repaired with refurbished packs.
"We strive to make more with less waste and energy expended. This is a crucial step in improving the sustainability of our components and manufacturing processes,” concluded Thomas Gallagher, Chief Operating Officer, Ultium Cells LLC.