Challenge
- The International Manganese Institute (IMnI) wished to enhance the ESG risk assessment of High-Purity Manganese Sulphate Monohydrate (HPMSM) – necessary for the manufacturing of some types of EV batteries – which is experiencing significant demand growth and heightened scrutiny.
- There was limited awareness and knowledge of the ESG risks linked to this material, which made it difficult to understand and evaluate its performance and the gaps and areas of improvement in its supply chain.
- The IMnI requested an internally facing report based on publicly available data, interviews with the industry association members involved in the HPMSM supply chain, experts in the field, and on-site audits conducted on several major producers.
Solution
- RCS Global conducted a comprehensive study of ESG risks and good practice in the industry related to the supply chain of the material.
- The study was based on publicly available information regarding HPMSM, interviews with the association members and industry experts, as well as on a series of on-site audits conducted by our in-house auditors. It also contained a benchmarking analysis of actions taken by comparable material sectors.
- The analysis included precise information obtained through the four on-site audits conducted by RCS Global’s Audit & Mapping team of some of the primary producers of HPMSM in China. The audit data accompanying the study was critical to better grasp the issues of the ESG performance of the industry, since there was limited publicly available technical information previously. Based on the study, the project team provided a report with conclusions on the main findings in terms of ESG issues in the HPMSM as well as a set of recommendations tailored to the industry association to address the ESG risks identified along the HPMSM supply chain, towards strengthening the overall performance of the association members.
Impact
- The analysis carried out by RCS Global enabled members of the industry association to comprehensively understand the main ESG issues associated with HPMSM supply chain and production. It contributed to an enhanced awareness of potential ESG risks to look out for, and in the identification and remediation of knowledge gaps faced by the industry association.
- The practical recommendations to implement ESG leadership ambitions along the HPMSM supply chain allowed for a better understanding of available strategies for risk mitigation and good practice that could be replicated from other more mature industries to improve the overall ESG performance of the HPMSM supply chain.
