Challenge
In an increasingly global marketplace, the pursuit of sustainable and ethically sourced products has become an issue of major importance across various industries. However, navigating the complexities of modern supply chains presents a multifaceted challenge. Ensuring responsible sourcing practices along supply chains and meeting stringent Environmental, Social, and Governance (ESG) standards is crucial to safeguard a company’s operations against a wide spectrum of risks while upholding their commitment to corporate responsibility.
It is under these circumstances that a global mining company has approached RCS Global with the aim of getting comprehensive insights into the intricate supply chains of Lithium Iron Phosphate (LFP) and Nickel Manganese Cobalt (NMC) batteries. With a focus on assessing the strengths and weaknesses of their potential supplier base, the company sought to enhance transparency, traceability, and adherence to ESG standards throughout their procurement processes.
Solution
Our team at RCS Global has set up a project consisting of two distinct phases. The first phase involved leveraging RCS Global’s deep knowledge and expertise in supply chain due diligence in the battery industry to generate a comprehensive overview of LFP and NCM battery supply chains. This work outlined the flow of materials and the many ESG risks across multiple jurisdictions around the globe that are associated with the production and processing of minerals such as lithium, nickel, cobalt, manganese, and copper, among others.
During the second part of the project, the RCS team set up a bespoke framework to evaluate the shortlisted suppliers. This meant working in close collaboration with the client to generate a set of ESG parameters informed by recognised frameworks, and the client’s own commitments. These parameters served as the basis for supplier evaluations. After such an evaluation, the client was provided with a matrix of comparable and objective results along with all the evidence to support them.
Impact
This targeted, comprehensive, and thorough assessment of LFP and NCM battery supply chains has enabled our client to make informed and confident procurement decisions. With our tailored support, the client is now able to employ a systemic approach for engaging suppliers, knowing precisely what questions to ask and which criteria to prioritise. This enhanced understanding enables the client to proactively address ESG risks, strengthen transparency and traceability within their procurement processes, and ultimately bolster their commitment to sustainability and corporate responsibility.
