ESG Today reported that asset manager Robeco is getting more hands-on with responsible mineral supply chains as the transition/electrification economy moves forward.
“Robeco said that its new engagement theme targeting the transition metals supply chain comes as the focus of climate change initiatives increasingly moves towards the achievement of net zero emissions, setting transition as a principle topic. The firm said that the transition minerals engagements will focus both on climate and on human rights, building on existing themes for Just Transition and net zero carbon emissions engagement. Ghislaine Nadaud, Senior Sustainability Investing Specialist at Robeco said:
‘In our engagement with transition sectors, we will be not only focusing on downstream or upstream activities. In the transportation sector, we’ll be looking at the whole electric vehicle battery supply chain, from the mining of the critical minerals needed, to the wider issue of the electrification transition. We’ll investigate some of the battery makers and maybe some of EV producers as well. So, it’s really taking a whole supply chain perspective in these transition sectors and not just zeroing in on individual companies.'”
This could be welcome news to those who have spent years working in responsible mineral supply chains. The topic was top of mind for many companies more than a decade ago when the SEC Conflict Minerals Disclosure Rule was issued. The shine has since dulled – in some instances, the matter is nothing more than a boilerplate reporting exercise heavily reliant on an essentially stagnant list of audited smelters/refiners. Institutional/retail investors and asset managers never made much of the issue, which didn’t help.
Meaningful investor engagement could reinvigorate interest, activity and momentum around responsible minerals supply chains.
Members can learn more about social risk in supply chains here.
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