Supply Chain Responsibility

SUPPLY CHAIN RESPONSIBILITY AND
THE CHALLENGE OF TRANSPARENCY IN COBALT MINERAL

At Samsung SDI we would like that all the raw materials that are used in our products were extracted, processed, and procured responsibly.
In order to do so, with the voluntary publication of this progress report, we have decided to set a precedent for a battery manufacturer. The main goal is to receive as much feedback as possible on how things could be improved. Nevertheless, having an impact as a company alone would be a mission “Impossible”: the complexity (upstream and downstream), and the resources required would be unbearable.
We have therefore come to the realization that we can tackle this problem only with the support of our customers, investors, suppliers, partners, employees, the Government of the Democratic Republic of Congo, civil societies and not least the affected local communities.
This is why we fully support existing OECD and CCCMC guidance, and we have also decided to support the “Responsible Cobalt Initiative”, to set new standards in the cobalt supply chain in the spirit of transparency, accountability and clear policy among as many interested like-minded participants as possible.

OECD 5-step framework for companies upstream and downstream
Company Policy & Management System/Risk Assessment/Risk Response/Audit/Report
Company Policy &
Management System
Risk
Assessment
Risk
Response
Audit Report
Company Policy & Management SystemAdopt company policy for the supply chain of minerals and establish strong company managements systems Risk AssessmentIdentify and assess risk related to factual circumstances in the supply chain against policy standards Risk ResponseDevise and adopt risk management plan in relation to policy and assessment, including risk mitigation measures AuditProvide for third-party audit of supply chain due diligence at identified points with third party verification ReportPublicly report on supply chain due diligence practices in sustainability, CSR, or annual reports

Source: OECD Guidance

Please support our efforts and let us know how we are doing by downloading this report and by providing us your opinion writing at cobalt@samsung.com.
We have also sponsored an independent academic research project that was conducted by UC Berkeley/CEGA (Center for Effective Global Action). The research project aims to provide rigorous empirical data on households engaged in artisanal mining, and it involves collecting survey data from households, children, village leaders, and local mineral traders in 150 communities that are representative and cover the full geographical extent of the DRC Copper Belt. The study provides evidence on the prevalence, the forms, and on the root causes of child labor in artisanal mining in the region.
We hope the report will be useful to all the stakeholders and help the DRC government, as well as companies on engage and address the challenges of responsible cobalt mining in a measurable and sustainable manner.