Responsible Sourcing and ESG Due Diligence

RESPONSIBLE SOURCING AND ESG DUE DILIGENCE

Responsible and sustainable production practices are a priority for Nickel Institute member companies.

Responsible sourcing and ESG due diligence programs are being developed to help companies identify, manage and address environmental, social and governance issues which may occur during mining and nickel production. Such programs ensure a process of continuous improvement.

The Nickel Institute supports its members through participation in the regulatory debate, contributing insights from the nickel sector. We also engage with downstream and end use sectors and with value chain initiatives to ensure that the specificities of nickel are understood and taken  into account. The NI also cooperates with other metals industry associations and initiatives to develop and update schemes and standards so that nickel producers can demonstrate  compliance with ESG due diligence requirements.

The Nickel Institute is “standard agnostic”.

We do not advocate for a specific framework to be applied by members companies. There are many schemes and standards available. Companies have to consider a wide range of parameters to identify the most appropriate scheme to apply to e.g., the geographies in which they operate, their product portfolio and the value chains and regions that their products serve.

The Nickel Institute supports the alignment of existing standards and promotes the cross-recognition of schemes.

THE NICKEL INSTITUTE POSITION

  • We support the ethical production of nickel to address Environmental, Social & Corporate Governance (ESG) risks

  • We are “standard agnostic” and support companies to use the most appropriate standard for their specific operation, portfolio and value chains they serve

  • We fully support standard convergence and cross recognition

  • We support the development of a coherent and consistent approach to responsible sourcing tools and ESG standards in order to facilitate compliance of NI members with various responsible sourcing and ESG frameworks such as e.g., LME, Responsible Steel and the EU battery regulation

  • As many of our members are multi-metal producers we advocate for credible tools and standards that are applicable to multiple metals and accepted by all stakeholders

JOINT DUE DILIGENCE STANDARD FOR COPPER, LEAD, MOLYBDENUM, NICKEL AND ZINC

The Nickel Institute has joined with the Copper Mark, the International Lead Association (ILA), the International Molybdenum Association (IMOA), the International Zinc Association (IZA), and the Responsible Minerals Initiative (RMI) in publishing a Joint Due Diligence Standard (available in English, Chinese, Japanese, Russian and Spanish) for copper, lead, molybdenum, nickel and zinc. The six organizations collaborated to issue the Joint Standard to enable companies to comply with the London Metal Exchange (LME) Responsible Sourcing requirements. The Joint Standard takes into account the risk profile of copper, lead, molybdenum, nickel and zinc supply chains and is designed to enable effective due diligence for producers and/or traders of these metals. It builds on existing standards and looks to provide flexibility for multi-metal producers to include any associated metal products of their site(s) as needed. The Joint Standard addresses concerns around human rights abuses and conflicts as mentioned in the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict Affected and High Risk Areas.

THE NICKEL MARK

Following the successful publication of the Joint Due Diligence Standard, the Nickel Institute extended its collaboration with the Copper Mark, IZA and IMOA to develop the “Nickel Mark”. The Nickel Mark is far broader than the Joint Due Diligence Standard. It covers a wider range of environmental, social and governance (ESG) risks and responds to the increasing assurance requirements of regulatory and value chain initiatives.

The Nickel Mark was launched in November 2022. It builds on consistent frameworks, fee structures, product overage and accessibility across metals. It provides an efficient and harmonized ESG assurance built on the existing standards of the established Copper Mark. Nickel producers can use the Nickel Mark to demonstrate their performance against 32 commonly agreed ESG issues. It can be applied for nickel and all its by-products.

Following the successful pilot in the first half of 2023, the first three companies with five production sites have been independently assessed as having implemented policies and practices conforming with the Copper Mark Responsible Production Criteria and received the Nickel Mark (August 2023). Additional companies have signed a letter of commitment and participate in the Assurance Framework with the aim to receive the Nickel Mark in the near future.

Further information on the Nickel Mark can be found on the Copper Mark website.

The Nickel Mark covers a wider range of environmental, social and governance (ESG) risks and responds to the increasing assurance requirements of regulatory and value chain initiatives.
The Nickel Mark covers a wider range of environmental, social and governance (ESG) risks and responds to the increasing assurance requirements of regulatory and value chain initiatives.
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