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Update on the Kallo Case

Borealis News

March 2024 update published in the Borealis Annual Report 2023*

Since the events of last year, Borealis has taken many steps across the Group to increase oversight of its Propane Dehydrogenation (PDH) construction site in Kallo, Belgium, and advance its organizational set-up. Overall, these actions can be clustered into three groups: competence, awareness and governance. Borealis also wishes to provide support for victims, as described below.

Competence

The Group has invested in additional capabilities and capacities to reduce the risk of social misconduct and malpractices, such as setting up and implementing a Global Social Compliance Team, with one Group Social Compliance Manager and three Regional Social Compliance Managers.

Borealis has also implemented regular alignment meetings with the social inspectorate and work authorities in Belgium and Austria.

Awareness

The Group has improved its ability to detect and address any misconduct. First, awareness of social compliance has been substantially increased and it is now an integral part of the quarterly business review. Borealis has also produced a social compliance video in 14 languages and “Speak up” cards in 27 languages. These are used to promote a speak-up culture within the organization, as well as for supplier onboarding with a focus on social compliance. Furthermore, Borealis has started to pursue social compliance engagement walks in Austria, Belgium, Finland and Sweden. In these engagement walks, the external workers are interviewed on social compliance matters while working on our sites. In cases of alleged grievances or an increased risk profile, audits will be conducted on social compliance matters. In case of concerns, mitigation plans are agreed and closely monitored. Last but not least, the Borealis Ethics Hotline has been opened to external whistleblowers and a process description has been implemented in the Borealis Management System (BMS), explaining in detail how to handle any such reports.

Governance

Borealis has zero tolerance for social malpractices and misconduct. A management document has been implemented in the BMS, stating the Group’s social compliance ambition, the framework for identifying regulatory and social compliance risks, advice on designing and implementing regulatory and legal compliance processes and controls to mitigate such risks, and how to monitor and report the effectiveness of these controls. The Group has also implemented stricter access checks at the site gates of its production locations in Austria and Belgium, combined with more frequent and risk-based checks.

Support for Victims

Borealis wants to support workers who were negatively impacted by the Kallo case. We have been in contact with the organization that has been mandated by the Belgium authorities to take care of victims of human trafficking in the Flanders region. In August 2022, via the Borealis Social Fund we offered a donation to this organization in order to ensure that the victims could get all the support needed. The discussions were conducted for several months, and in the end our offer was not accepted.

*This update on the Kallo case was published in the Borealis Annual Report 2023, English version on page 89.

END

These news are also available in German and Dutch language.

Earlier news published on the Kallo case:
About the Kallo case (comprehensive summary, January 2023)
Update on the Kallo case (November 2023)

Borealis News

Media Contact
Group Media Desk
+43 1 22 400 899 (Vienna, Austria)
media@borealisgroup.com

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