Five responsible sourcing trends to look out for 2017
1.More raw materials, more geographies, more industries under the spotlight:
This year will see major NGOs working in the responsible sourcing space releasing new or follow up reports that will place more sectors under pressure.
Likewise, the OECD is due to release findings on an examination of 22 different raw material supply chains. The key quote here from a senior OECD staffer is ‘the more we research, the more we discover.’
Sourcing of cobalt is hitting the mainstream with the Responsible Sourcing Initiative launched late last year that included Apple, Huayou and other major brands leading the charge. The initiative has an ambitious program of work that includes direct programs for child labour in the DRC.
Likewise other initiatives – out of the auto-industry and World Economic Forum will set agendas for cobalt.
3.Tin from Myanmar:
Do you have CFSI approved tin in your supply chain from major Chinese smelters? If so – you are possibly sourcing from Myanmar and potentially high risk areas from the north of the country.
This is an emerging issue that is steadily gaining momentum is likely to result.
4.Spotlight on company reporting, with or without DF1502:
This year will see media and NGOs placing more pressure on companies to report and to improve the depth and quality of reporting.
Block chain for responsible sourcing:
Block chain is starting to make its way into supply chain management, as a transparent way to handle complex supply chains.
RCS will be working with key partners to bring this to the responsible sourcing space.
5.Threat/risk multipliers for related supply chains:
As certain raw material supply chains are targeted by an issue or controversy, we predict that others will be drawn into the debate.
Materials that are mined together, or which are part of the same supply chain, such as battery supply chains will face greater scrutiny as companies active in this space naturally seek to mitigate their risks elsewhere.