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Automotive now has a tool to assess risks linked to raw materials

Wednesday, April 18, 2018

Wednesday, 18 April 2018 – Paris. Drive Sustainability announced the Risk Assessment Study at the ‘OECD Forum on responsible mineral supply chains’.  The research was conducted by The Dragonfly Initiative (TDI) in collaboration with Drive Sustainability and the Responsible Minerals Initiative (RMI). CSR Europe coordinates this partnership.

The Risk Assessment Study includes the following:

  • Assessment of 37 materials used in the manufacture of automobiles and electronic products  
  • Top 17 material profiles for highest risk in countries selected by Drive and RMI members

Two sets of criteria were used to assess the risk of the materials:

  1. importance for automotive industry
  2. association to Environmental, Social and Governance (ESG) risks and impacts.

While the majority of the materials covered by the study are derived from mined minerals and subsoil resources, they are not exclusively so. The non-mined materials included are leather and natural rubber.  Furthermore, not all the materials studied are “raw materials” in the strict definition of the word, as many undergo significant transformation before they reach the factory gate.

COLLECTIVE ACTIONS

Moreover, opportunities for collective actions have been identified. As highlighted by Stefan Crets, Executive Director of CSR Europe: “The objective is to establish a process for continuous intelligence sharing, dialogue and – ultimately - collaboration with other sectors and initiatives that share our vision to bring positive change across supply chains”.

RAW MATERIALS OBSERVATORY

As announced end 2017, the Risk Assessment Study is the first public deliverable for the ‘Raw Materials Observatory’ by Drive Sustainability. Its purpose is to:

  • assess ethical, environmental, human and labour rights issues in the sourcing of raw materials, and
  • identify opportunities for collective actions for the Drive Sustainability’s partners in order to address identified issues

The full report on the Raw Material Observatory will be made available by end April/early May on the website of three involved organisations and will include Top 17 material profiles for: Aluminium, Cobalt, Copper, Glass (silica sand), Gold, Graphite, Leather (light bovine), Lithium, Mica, Nickel, Palladium, Rare Earth Elements, Rubber (Natural), Steel/Iron, Tin, Tungsten, Zinc.

 

About Drive Sustainability: Drive Sustainability is a partnership of 10 leading automotive companies that work together to improve sustainability in the supply chain. Starting with 2012, its members have assessed over 20,000 suppliers in more than 100 countries and engaged over 1500 suppliers in capacity building initiatives. Over 40 training sessions have been conducted in 10 countries. Drive Sustainability operates under strict anti-trust policies

About The Dragon Fly Initiative: The Dragonfly Initiative (TDI) is a sustainability advisory firm established to enable businesses in the natural resources, precious metals and gemstones supply chains – from production to retail, site to shelf, mine to market – to work collaboratively in realising an environmentally, socially and financially responsible system of connected enterprises.

About The Responsible Minerals Initiative: More than 350 companies from ten different industries participate in the Responsible Minerals Initiative today, contributing to a range of tools and resources including the Responsible Minerals Assurance Process, the Conflict Minerals Reporting Template, Reasonable Country of Origin Inquiry data and a range of guidance documents on responsible minerals sourcing. The Responsible Minerals Initiative also runs regular workshops on minerals supply chain issues and contributes to policy development and debates with leading civil society organizations and governments.