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;
• improved relationships with stakeholders including suppliers and consumers;
• improved ability to preserve reputation.

More information about the issue can be found in PRI's work on How Investors can Promote Resposnible Cobalt Sourcing Practices.