Analysis by CSOs evidences how newly proposed mining standard could threaten communities, workers, and Indigenous Peoples
"The Risks Posed by the Consolidated Mining Standard Initiative: a Civil Society Briefing for Automakers and other Downstream Purchasers", 3 December 2023
The analysis "The Risks Posed by the Consolidated Mining Standard Initiative: a Civil Society Briefing for Automakers and other Downstream Purchasers" with contributions and endorsements from Public Citizen, Oxfam, IndustriAll, Sirge Coallition, Global Witness, IPRI, T&E, SOMO, MightyEarth, the Heinrich Boell Foundation, Ecos, European Environmental Bureau, EarthWorks and the EU Raw Materials Coallition aims to evidence the potential human rights risks to communities, workers and Indigenous Peoples associated to the newly proposed Consolidated Mining Standard Initiative (CMSI). It also shed lights on associated risks within the energy transition supply chain, particularly automakers and downstream purchasers of energy transition minerals.
The key insights of the analysis are as follows:
- The standard is too vague to provide meaningful guidance to companies and to enable effective auditing: The lack of clarity in the CMSI undermines its ability to offer actionable guidance for corporate practices and effective auditing processes.
- Non-conformance with fundamental international laws, principles, and guidance that protect the rights of Indigenous Peoples: The standard does not align with essential international laws and principles, raising significant concerns about potential human rights violations against Indigenous communities.
- The lack of alignment with widely accepted international standards already used by industry: The CMSI fails to conform to established international standards that are already recognized and utilized within the mining sector, which may lead to inconsistencies in responsible sourcing practices.
- Misalignment with government-backed international due diligence principles and guidance that promote responsible business conduct in supply chains: The CMSI does not adequately align with international due diligence principles, which could hinder effective responsible business practices in supply chains.
- An assurance process that gives mining companies too much control, compromising its independence: The assurance process is criticized for allowing mining companies excessive influence, which undermines the independence and reliability of the auditing process.
- An assurance system that lacks guidance, adequate accreditation, and oversight, making independent, reliable audits improbable: The current assurance system is deficient in providing necessary guidance and oversight, which raises concerns about the reliability of audits conducted under the CMSI.
- A governance model that gives mining companies too much control over processes that impact the Standard’s accountability measures: The governance framework is seen as inadequate, as it permits mining companies disproportionate control over accountability measures, potentially undermining the effectiveness of the standard.
- There are no incentives within the CMSI for companies to move beyond Good Practice for any Performance Area: The CMSI lacks mechanisms to encourage companies to exceed basic compliance, which may result in stagnation in improving social and environmental performance.
Finally, the analysis identifies three significant downstream risks associated with the Consolidated Mining Standard Initiative (CMSI) for automakers and others. First, the standard may award certifications to mines that continue to engage in serious human rights abuses or environmental harms, thereby exposing companies to reputational and operational risks. Second, the CMSI does not adequately support rigorous due diligence, which could lead to compliance issues with forthcoming EU regulations, resulting in potential fines and loss of market access. Lastly, the weaknesses in the CMSI's criteria, assurance process, and governance model could lead to financial risks and disruptions in supply chains, further complicating responsible sourcing efforts.
The full analysis can be accessed here.