In October 2019, the London Metals Exchange (LME) announced the introduction of responsible sourcing requirements for all brands listed for good delivery on the LME against physically settled contracts. These requirements include the implementation of the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High Risk Areas (OECD Due Diligence Guidance) and the maintenance of an ISO 14001 environmental management system certification and an ISO 45001 occupational health and safety management system certification or equivalent.
In response to the introduction of these responsible sourcing requirements by LME, the International Lead Association (ILA) collaborated with the Copper Mark, the International Zinc Association (IZA), the Nickel Institute and the Responsible Minerals Initiative (RMI) on the development of the Joint Due Diligence Standard for Copper, Lead, Nickel and Zinc.
The Joint Due Diligence Standard was designed to enable the implementation of the OECD Due Diligence Guidance for producers and/or traders of copper, lead, nickel and zinc, taking into account the risk profile of these metals, and enable effective due diligence for producers and/or traders in compliance with market entry requirements defined by the LME and broader stakeholder expectations, using a single framework.
Facilitated by The Copper Mark, a working group of commodity associations, including the ILA, multi-metal company representatives, the LME and the OECD was established to develop the Joint Due Diligence Standard between 2019 and 2020. The Joint Due Diligence Standard was published for public consultation in 2020 and piloted in early 2021.
“One of the seven guiding principles of our lead battery value chain […] is the adoption of responsible sourcing policies. The finalisation of the Joint DueDiligence Standard for Copper, Lead, Nickel and Zinc is an important milestone for responsible global supply chain management in the lead industry,” said Andy Bush, Managing Director of the International Lead Association, when the Joint Due Diligence Standard was officially launched.
In December 2021, the Joint Due Diligence Standard was conditionally approved by the LME. ILA’s Dr Steve Binks, Director of Regulatory Affairs, welcomed the move as he claimed “We are delighted that the LME has recognised the joint due diligence standard. This is a significant milestone and will help lead metal producing facilities demonstrate that they are meeting internationally recognised standards for responsible sourcing.” The news was reported on ILA’s website.
Read the full announcement here.