This collaborative engagement group focuses on engaging companies on their responsible sourcing practices around cobalt in line with OECD Due Diligence Guidance. Investors will engage with companies to understand how they are addressing the issue of responsible sourcing of cobalt and to encourage them to improve specific practices.
Why investors should care
Systemic human rights violations in cobalt supply chains originating in the mines of the Democratic Republic of Congo (DRC) have become a risk for companies that rely on this mineral for their products. Reasons include:
- increasing regulatory risks associated with legislation around sourcing of minerals;
- reputational risk associated with investigations and media attention on poor corporate practices in cobalt supply chains;
- consumer expectations;
- potential negative impact, on operations and material availability.
As well as mitigating risk,good management of cobalt supply chains can contribute to a company’s competitive advantage, and strengthen its long-term financial stability. Benefits include:
- cost savings through improved efficiency and working conditions as well as risk management;
- mproved relationships with stakeholders including suppliers and consumers;
- improved ability to preserve reputation.
Join the group
Engagement focus companies