Home Complaints database Twerwaneho Listeners’ Club & Clouds Fm vs. Holcim AG
Complaint

Twerwaneho Listeners’ Club & Clouds Fm vs. Holcim AG

Holcim’s links to environmental and human rights harms in Kabarole District, Uganda

Date filed
3 August 2023
Keywords
Countries of harm
Current status
Filed
Sector
NCP

Allegations

On 3 August 2023, a complaint was filed by Twerwaneho Listeners’ Club, a Ugandan non-profit human rights organisation, and Clouds Fm, a local human rights broadcaster, to the Swiss NCP. Both parties represent the affected communities in Kabarole District, Uganda. The complaint was lodged against Holcim AG, a Swiss company that manufactures building materials, in relation to the activities of its Ugandan subsidiary, Hima Cement Ltd.

Following a 2016 article published in French newspaper Le Monde, Holcim stopped buying raw materials from artisanal miners (who reportedly used child labour) and began purchasing materials from suppliers capable of running mechanised quarries. This type of mining, used by Hema Cement, has led to severe environmental damage, affecting water tables and agricultural land, impacting local communities that predominantly rely on farming for their livelihoods. Local communities have raised concerns about non-compliance with human rights standards, environmental policies, and mining regulations. Despite attempts at peaceful demonstrations, dialogue, and legal action, the situation has not improved.

The complaint alleges that Holcim is in breach of several chapters of the OECD Guidelines, including those related to human rights, environmental impacts, transparency, stakeholder engagement, and taxation. The complainants note how Holcim has not taken adequate steps to address these issues or ensure compliance with the OECD Guidelines, highlighting that the company had stated a commitment to sustainable development and responsible sourcing. The complaint therefore alleges that the company’s actions do not align with these commitments and that it has failed to ensure its subsidiary’s suppliers operate in accordance with the Guidelines.

Relevant OECD Guidelines

Outcome

On 15 November 2023, Holcim publicly announced that it had signed agreements to divest its businesses in Uganda and Tanzania. Hima Cement Ltd is being sold to the Sarrai Group for USD 120 million.

More details

Defendant
Company in violation
Other companies involved
Complainants
Affected people

Documents