Learn How RMI Took Responsible Sourcing In Automotive & Electronics Industry

RMI plays a crucial role in making the supply chain more responsible in sourcing. With greater transparency and responsibility for the supply chain, the RMI and Drive Sustainability collaboratively introduced the study Material Change for the better understanding of environmental, social, and governance (ESG) risks in regard to the automotive and electronics industry. The study Material Change was the result of 37 key materials evaluation within the sector’s various aspects offering a groundwork for the companies to make informed decisions for their upstream communities. Hence, this blog explains responsible sourcing of materials in the automotive and electronics industries.

Material Change – Commissioned by Drive Sustainability & RMI and completed by The Dragonfly Initiative (TDI).

Material Change is a study which was commissioned by Drive Sustainability and the Responsible Minerals Initiative (RMI) and conducted by TDI. This study primarily focuses on the responsible sourcing of the materials required for automotive and electronics industries. Also, this study aims to address all the Environmental, Social, And Governance (ESG) concerns to the global production of materials in regard to the  automotive and electronics industry.

Key Points From The Study:

Purpose: 

The primary purpose of the study is to assist the businesses to completely understand the ESG risks in the industry’s supply chain for the materials used in their production. Also, this approach was conducted to the response of the growing demand from the regulatory bodies, consumers, investors, civil society, and consumers to transparency in the supply chain.  

Scope: 

The study was conducted for around 37 materials used in the automotive and electronic industry highlighting its risks at the industry level. Also, the study emphasized the importance of collaborating with industries and businesses to enhance sustainability, minimise environmental pressure, and protect ecosystems. 

Collaboration And Impact: 

The report marks the first deliverable of the Raw Materials Observatory for Drive Sustainability’s partners. It is meant to guide companies in identifying and prioritizing ESG risks in their supply chains. The primary aim is to drive positive change by better understanding, engage with raw material supply chains and strengthen collective actions.

Challenges In Responsible Sourcing: 

One of the challenges identified in the study is the minimized reliability and updated data for the business to make the right decisions. Also, the study aims to offer the required data for the industry allowing the companies to understand the risks better and develop a responsible sourcing strategy.

Future Steps: 

The study will inform future action plans for members of Drive Sustainability and RMI, with a particular focus on engaging and building capacity within mineral supply chains. 

Material Change is a resource for industries involved in automotive and electronics manufacturing, aimed at improving the sustainability of their supply chains by addressing critical ESG issues associated with raw material sourcing. Approach, Sunstream for conflict mineral compliance to meet regulatory requirements and position yourself as the leaders in sustainable innovation.