PRI signatories are invited to join this collaborative engagement which focuses on engaging companies on their responsible sourcing practices around Cobalt in line with OECD Due Diligence Guidance.
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.