Kumi analysis of the conflict minerals policies of over 300 companies has found that only 5% were aligned to the recommendations for company policy content set out in the OECD Guidance. We discuss how the detailed insights emerging from the OECD Alignment Assessment project can help companies to strengthen their due diligence and responsible sourcing practices.
With 2017 being increasingly seen as a watershed year for electric vehicles, the pressure is on to develop responsible supply chains for battery materials. Cobalt, in particular, is under heavy scrutiny. Companies need to establish effective risk management controls to avoid being caught out by some underestimated and poorly understood risk factors. But there are also significant benefits to be realised from responsible cobalt sourcing practices.
The support Kumi has been providing to the OECD in delivering the Alignment Assessment project has given us unique insights into the current state of due diligence practices across global supply chains for conflict minerals. We are now using these insights to inform and strengthen the services we provide to our clients.
The draft methodology for assessing the alignment of industry programmes with the OECD Due Diligence Guidance for Responsible Mineral Supply Chains has now been published. This post provides an overview of the structure and design of what is likely to become an important resource for industry programmes working to address the issue of conflict minerals.