| Project Detail |
Due diligence operational system for mineral supply chains
The EU considers due diligence (DD) essential for ensuring a stable supply of raw materials for its industrial value chains. To promote responsible sourcing and supply chain DD, the EU has introduced various instruments, including proposed laws and regulations. However, many EU-based companies struggle with implementing DD effectively. The EU-funded DiliCHANCE project aims to significantly transform the existing DD operational system. The project will evaluate DD solutions from three perspectives (tools, business practices, and assurance and verification) and assess their effectiveness. Additionally, it will provide training for key decision-makers in business, policy, and civil society to foster industrial leadership in critical EU mineral value chains.
The European Union (EU) under its political economic prosperity and sustainability agenda perceives due diligence (DD) as a means and an end: DD is urgently needed for (a) assuring sufficient supply of raw materials (primary and secondary) critical for the EU industrial value chains and strategic sectors, and (b) changing sourcing and business practices to minimize societal and environmental harm in- and outside the EU in the light of the Europe 2030 Agenda and SDGs.
For that purpose, the EU and its Member States deployed a mix of different instruments aiming at responsible sourcing and supply chain DD. These instruments cover a variety of requirements both horizontal (proposed upcoming Critical Raw Materials Act and Directive for Corporate Due Diligence and Corporate Accountability) and product or commodity specific levels (i.e. Conflict Minerals Regulation, Battery Regulation). These diverse frameworks of legal requirements for DD processes set and enforce standards for business, regulate markets, and, ultimately, foster a level playing field – i.e. a state in which conditions in a competition or situation are fair for everyone.
Even though front runner companies, policy and civil society call for mandatory DD, the majority of EU based companies are currently struggling to implement DD: Only one third of larger EU companies practices voluntary DD covering human rights and the environment, while only one in seven companies claim to cover the entire value chain.
The DiliCHANCE Project aims to fundamentally reshape the current DD operational system: Looking into DD solutions from a holistic three-pronged approach - tools, business practice, and assurance & verification - assessing their efficacy and engaging in capacity building with key decision-makers from business and policy, as well as civil society will unlock industrial leadership for key EU mineral value chains. |
