Improving business conditions in complex markets

Decreasing environmental and social risks for energy investments in Mozambique 

Sector

Energy

Partner
Electricidade de Moçambique E.P. (EDM)
Status

Ongoing since 2023

Mozambique is a net exporter of energy to countries in the Southern African Power Pool (SAAP) and has an important regional role in the commercialization of electricity in the region. Electricidade de Moçambique E.P. (EDM), the state-owned energy company which generates, transmits and distributes electricity and is the sole electrical utility in Mozambique, plays a key role in Mozambique achieving universal access to energy and electrifying the region.  

Mozambique aims to achieve universal access to energy by 2030. Large investments in Mozambique’s energy sector are being made to achieve this goal and access increased from 34% in 2021 to 48% in 2022.

“With EDM being a pioneer in its plans for
international environmental and social certification,
we believe that the partnership with NIR will have
a significant impact. The partnership will enhance
the capacity of EDM’s Environmental, Social and
Health Team. Given these imperative points for the
sustainable development of EDM, we have confidence
in the partnership, considering NIR’s ability,
knowledge and achievements in similar projects.”

EDM’s Environmental, Social and Health Team

Our support to EDM is phased as an effective ESMS is made up of many connected components. The first milestone achieved was the establishment of EDM’s E&S Policy and Policy Statement – the foundation of an ESMS. With our support, EDM’s Environmental, Social and Health Team developed a tailored E&S Policy which was presented to and adopted by EDM’s Board of Directors in December 2024. This milestone shows the commitment by EDM’s top management to proactively and effectively manage E&S risks and impacts across the organization and linked to its operations. xxx 

Visiting one of EDM’s assets in Maputo in June, with EDM’s Environmental, Social and Health Team.  

EDM’s Environmental, Social and Health Team is also simultaneously reviewing EDM’s existing processes for environmental management and with our support is working towards ISO 14001 certification in early 2025. The aim is to establish an ESMS that is fully integrated and aligned with ISO and IFC PS requirements. 

We are also supporting EDM on other strategic issues key to the organization, including managing resettlement and how sustainability can be enhanced in EDM’s project procurement processes for large projects. This support, along with further development of the ESMS, will continue into 2025. 

Latest Highlights

Team Sweden

Team Sweden is a network of government authorities, agencies and Swedish companies that support major infrastructure projects globally, with the aim to contribute to the development of sustainable projects. 

EXECUTIVE SUMMARY

This executive summary presents the findings from the study “Workplace Cooperation: Finding Practical Solutions in the Colombian Context,” conducted by the Fundación Ideas para la Paz (FIP). The study evaluates the added value of the Swedish Workplace Programme (SWP) dialogue and cooperation model within the Colombian labor market.

Throughout 2022, FIP dedicated efforts to thoroughly understand the SWP model, including its concept, foundations, implementation process, and contributions to the labor market. In 2023, FIP documented the experiences of three companies—SKF Latin Trade, Securitas, and Epiroc—that implemented the SWP model in practice. The study also included face-to-face workshops to gather feedback from various stakeholders including civil society, businesses, government, academia, and international cooperation. The findings suggest that the SWP model has the potential to strengthen labor relations, contribute to decent work, and resolve workplace conflicts in Colombia.

The case studies highlight the importance of collaboration between employers and workers to promote decent work and sustainable development in Colombia. They demonstrate that social dialogue facilitates worker participation in labor decision-making, enhances their representativeness, and promotes cooperation between employers and employees, thus improving labor relations and contributing to the well-being of both employees and companies.

The SWP model is particularly noted for improving workplace relationships and commitment to jointly finding solutions to challenges faced by workers and the company. It empowers workers, enhances leadership, and helps integrate business policies into daily practices, reducing the initial disconnect between management objectives and the day-to-day realities of workers. The study also highlights the model’s capacity to manage conflicts constructively, transforming the perception of conflict as an opportunity for improvement. Structured dialogues deepen understanding of the underlying causes of conflicts, fostering empathy and facilitating effective resolution. This promotes a culture of collaboration and a democratic approach to decision-making, building trust.

Additionally, the model is recognized for enabling workers to make decisions, identify challenges, and propose solutions that impact their well-being, and bridging gender gaps in the workplace. Its inclusive approach adapts to the unique needs and characteristics of each company, promoting a stronger and more diverse organizational culture. It also drives good work performance and productivity by involving workers in problem identification and resolution, as well as in implementing improvements and efficiently identifying ESG (Environmental, Social, and Governance) risks for companies.

The document identifies the SWP model’s added value in empowering direct interaction among labor stakeholders in Colombia, overcoming historical or cultural reservations, and contributing to the development of stronger labor relations and improved workplace environments in the country.

Challenges and opportunities of the model are also discussed. The study points out the importance of addressing value chain risks, particularly in a global context where corporate clients demand decent work processes and due diligence. It emphasizes the need to integrate SMEs into this process and use anchor companies as drivers of social dialogue throughout the value chain. The role of the state in social dialogue and the importance of highlighting the benefits of the model for adoption across various business sectors are discussed.

The opportunities of the model include raising awareness of human rights in the workplace in line with the United Nations Guiding Principles (UNGP), to strengthen due diligence, manage risks, promote long-term sustainability, and improve organizational culture. The document also underscores the importance of involving workers in change processes, leveraging their insights for continuous improvement of processes, and fostering innovation opportunities. Lastly, it suggests replicating the model in value chains to address work environment risks and gender biases, involving suppliers and contractors, and integrating the model into corporate policies to strengthen existing programs and transform organizational culture towards resource efficiency and effective participation of employers and workers.