"Investors worldwide call for responsible mining practices in nickel industries", 26 February 2024

"31 investors, with USD 2.7 trillion in combined assets under management, have signed a statement expecting companies to enhance their environmental and social due diligence in nickel supply chains of the electric vehicle (EV) industry. They are calling for incorporating responsible mining requirements into their mineral supply chain policies...

Nickel is a transition mineral used to produce the cathode material of lithium-ion batteries, which are used to power electric vehicles. The single-largest growth in the demand of nickel in the next two decades is expected to come from the electric vehicle (EV) industry...

At the same time, a rising number of reports on the negative environmental and social impacts of nickel mining activities in South-east Asia countries including Indonesia and the Philippines, have worried investors. Common issues include deforestation, water and air pollution, conflicts with local communities and biodiversity loss...

Now, 29 investors have signed a statement initiated by the Dutch Association of Investors for Sustainable Development and Rainforest Foundation Norway, to incorporate responsible mining practices and higher standards for environmental and social impact in nickel supply chains....

This is the first collaborative investor engagement initiative for nickel supply chains, and it is supported by several national and international NGOs....

Among others, investors expect automakers and EV battery manufacturers to introduce requirements for Free, Prior, and Informed Consent (FPIC) of Indigenous Peoples and local communities in mining operations, as well as to include third-party, independent auditing using transparent social and environmental standards during risk and impact assessments of mining and refining sites...

Angélique Laskewitz, executive director of VBDO explains:...

"We expect companies to conduct enhanced due diligence for biodiversity, pollution, climate change and IPLC rights risks as well as adopt a time bound commitment to have deforestation-free nickel supply chains.""

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This statement is directed at companies (and their brands) in the downstream electric vehicle sector, including ... [at least 19 EV Manufacturers and 10 EV Battery Producers].