News
09 February 2022

The Revised Cobalt Refiner Supply Chain Due Diligence Standard – Supporting responsible production efforts of companies

Alexandra Cech, Senior Project Manager of the Responsible Minerals Initiative (RMI), explains how the revised Cobalt Refiner Supply Chain Due Diligence Standard can support due diligence and responsible production and sourcing efforts by companies. Meeting Expectations As global demand for cobalt continues to rise with the increased demand for batteries globally, cobalt supply chain stakeholders (including midstream and downstream companies, regulators, and civil society) continue to push for reputable, established programs and practices that allow companies to adhere to and demonstrate responsible cobalt sourcing and production within their supply chains. In response to this demand, the Responsible Minerals Initiative (RMI) and the Responsible Cobalt Initiative (RCI) published the revised Cobalt Refiner Supply Chain Due Diligence Standard in April 2021, as an update to the original standard released in August 2018. This revised standard is intended to support due diligence and responsible production and sourcing efforts by companies, as well as enable companies to comply with the London Metal Exchange (LME) requirements. The Revised Standard This revised standard is the outcome of a multi-year process by the RMI and RCI that included reviewing the process, results and feedback from refiners, auditors and companies on the initial standard. In addition to edits based on implementation feedback, the revised standard underwent several rounds of consultation, including a public comment and review period in 2020. The standard maintains its tone of encouraging companies to source responsibly from Conflict-Affected and High-Risk Areas and, where relevant, from artisanal and small-scale mineral producers. As with the initial standard, the revised standard was developed in line with the principles and requirements of the Chinese Due Diligence Guidelines for Responsible Mineral Supply Chains and the OECD Due Diligence Guidance for Responsible Mineral Supply Chains from Conflict-Affected and High-Risk Areas. Implementation of this revised standard will continue to enhance responsible cobalt trade by setting clear and progressive requirements for companies in the cobalt value chain. While similar in tone and structure to the initial standard, the revised standard provides additional clarity on requirements and adds a community participation element. Notable updates to the revised standard include:

  • Clarified required data points that must be captured by system of controls and transparency for all cobalt-bearing material received.
  • Clarified requirements to assess plausibility of material coming from declared sources.
  • Further articulation of company risk management requirements.
  • Addition of Step 6: Community Participation, which encourages companies to consider ways to effectively engage local communities to establish partnerships with artisanal miners, governmental and non-governmental organizations, and other stakeholders.

Next Steps Now that the revised standard is published, it will undergo an independent third-party OECD Alignment Assessment, necessary to obtain formal approval by the LME. The results of the OECD Alignment Assessment and LME approval process will be shared on the Standards page of the RMI website. Organizations interested in learning more about the revised Cobalt Refiner Supply Chain Due Diligence Standard can visit the RMI website or contact the RMI at RMI@responsiblebusiness.org.

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