Human rights and conflict in mineral supply chains: An Investor Guide
Human rights risks linked to mineral sourcing are coming to the forefront as demand for critical minerals, driven by energy transition, AI, and geopolitical competition accelerates. Minerals such as tin, tantalum, tungsten and gold (3TG), as well as cobalt, nickel, lithium and copper, are essential to technologies ranging from semiconductors and data centres to electric vehicles and renewable energy systems.
Artisanal and small-scale mining (ASM) is at the core of social and environmental concerns: this type of informal mining supplies a significant share of several critical minerals, employing over 225 million people globally. While ASM provides livelihoods and can contribute to poverty reduction and local economic development, it is frequently associated with unsafe working conditions, child and forced labour, corruption, environmental degradation, gender-based violence and, in some regions, armed conflict financing. The Democratic Republic of the Congo (DRC) remains the most prominent example, but similar risks exist across parts of Africa, Asia and Latin America.
This report aims to equip investors with a comprehensive understanding of human rights and conflict risks existing in mineral value chains, their relevance to portfolio companies and effective approaches to engagement and stewardship. To this end, the report provides an overview of international regulatory regimes and normative frameworks designed to address mineral sourcing risks, evaluates their effectiveness, highlights current and emerging corporate practices, and offers a detailed stakeholder engagement guide.
“Human rights and conflict in mineral supply chains: An Investor Guide” covers the following topics:
- ASM and related human rights risks, including armed conflict in the DRC in other jurisdictions
- Regulations, international normative frameworks and industry schemes focused on responsible mineral sourcing, successes and challenges
- Unintended effects of the global responsible mining drive on local communities in the countries of origin
- Mineral sourcing implications for corporate value – legal, reputational and regulatory risks
- Key challenges for corporates in implementing responsible mineral sourcing and due diligence processes
- Current trends and best practice
- Investors’ role in facilitating responsible mineral sourcing practices
- A detailed stakeholder engagement guide