Listen to Michael Reckordt, Resource Policy Expert from German organisation Powershift.
We've all heard about the global dilemmas surrounding resources like cobalt, essential for the technology in our mobile phones, but often sourced from regions with questionable human rights records.
The energy transition, the production of batteries, electric vehicles, and the transmission of renewable energy all rely heavily on raw materials, including cobalt, nickel, lithium, and rare earth elements. These minerals are concentrated in a few countries, making them susceptible to geopolitical supply disruptions.
International institutions, including the United States and the European Union, have been working on critical minerals strategies, with Europe's proposed Critical Raw Materials Act currently at a pivotal stage.
In this episode, you’ll hear more about:
“We hope with due diligence laws, with the battery regulation and maybe with a lot of improvement with the Critical Raw Materials Act, there might be a better chance to address not only armed conflicts but also water and land conflicts in the future. But still, as long as we need more and more metals, there will be pressure on local communities.”
There's very little pressure being applied to companies by investors looking at how they're actually behaving and treating human rights as a core business priority. This needs to change.
Investors shouldn't just take companies' word for what they're doing; they should investigate what the companies are actually doing regarding human rights.
Germany's NewClimate Institute has produced the Corporate Climate Responsibility Monitor report, evaluating the transparency and integrity of climate pledges of 51 major companies across different sectors and geographies.
