From a downstream company perspective, it has become necessary to have a solid understanding of not one, but several different mining standards in the context of the supply chain assurance.
Challenge
Over the past two decades, there has been a significant proliferation of initiatives and standards for responsible mining and responsible sourcing assurance. Their diverging structure, scope and coverage have made the standards landscape highly difficult to navigate.
In this context, one of the biggest automotive OEMs came to RCS Global to gain a deeper insight into the structure and other specifics of the relevant assurance schemes. The ultimate goal for the client was to inform its relationships with the upstream partners in the mineral supply chain and to strengthen the company’s position when engaging with the standard-setting organisations.
Solution
RCS Global’s Responsible Sourcing Advisory team:
- Conducted a comprehensive benchmarking exercise and collected market intelligence on various third-party assurance programmes and standards covering the selected priority raw materials.
- Reviewed the standards against multiple criteria, such as applicability (risk and material scope, supply chain tier), governance, audit process, depth and granularity of requirements, estimated adoption time, costs, etc.
- Provided recommendations for a suitable engagement approach with the standards to inform the company’s responsible sourcing activities.
Impact
The strategic advisory and standards analysis helped the automotive company gain a better understanding of third-party assurance programs and standards related to their priority raw materials.
The company has been able to take a more confident, strategic position when engaging with its suppliers and relevant industry bodies. The company could strengthen its relationship with upstream partners and ensure that the materials in their products come from sources that operate in alignment with industry good practices and the company’s own ethical and sustainability objectives.
The OEM now has a robust understanding of standards and can confidently participate in discussions with stakeholders and advocate for ethical and sustainable supply chains.
