The European Commission is working on a legislative proposal on sustainable corporate governance, including horizontal mandatory supply chain due diligence requirements.
In addition, the EU has already adopted the EU Conflict Minerals Regulation, including detailed requirements on sourcing of tin, tantalum, tungsten and gold.
Why it’s important
Due Diligence is becoming a differentiating factor in customers’ choices for metals products. Metals companies are adjusting their operations to meet social expectations and environmental standards, to demonstrate their raw materials are ethically and sustainably produced.
The EU’s new due diligence rules will set an overall framework requiring all companies to source responsibly, linked with what’s already being put in place at a sector level.
What we’re seeking
The EU’s Due Diligence legislation should encourage the use of sustainably produced and responsibly sourced metals and minerals in the entire value chain, through:
- A “smart mix” of minimum due diligence requirements, industry initiatives and incentives
- Efficient, impartial and transparent enforcement mechanisms
- Promotion of stronger and fair-trade relations with key international partners.
We’re also an active stakeholder in the Netherlands Government’s International Responsible Business Conduct Agreement for the Metals Sector, and engage with international-level initiatives from the OECD and UN.
Our members have also developed metals-specific schemes for guaranteeing responsible and sustainable sourcing of their raw materials.