Due diligence is a structured risk-management process through which companies interrogate the conditions of their operations, business relationships, and supply chains, then use those insights to prevent, mitigate, and communicate relevant impacts. In the minerals and metals sector, this means building a clear understanding of where minerals are mined, traded, transported, processed, and refined into metals, and whether those activities may be linked to adverse impacts along the way. Because mineral supply chains are often complex, fragmented and dynamic, due diligence is necessarily an ongoing process of collecting information, identifying gaps, and engaging with business partners to mitigate actual or potential adverse impacts.
In the minerals and metals sector, the Organisation for Economic Cooperation and Development has developed Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas (OECD DDG) and the Guidance for Responsible Business Conduct, which are recognised frameworks of reference for due diligence in mineral supply chains.
Due diligence is increasingly an expectation in the minerals and metals sector from stakeholders ranging from regulators and civil society to investors and consumers. In many jurisdictions, due diligence is a regulatory requirement today.
In practice, industry approaches to due diligence often combine risk scoping, supplier engagement, chain-of-custody documentation, assessments and audits, grievance mechanisms, and participation in responsible sourcing schemes. Understanding the factual circumstances of the supply chain is a fundamental part of due diligence and requires examining aspects such as the location and conditions of each stage of the supply chain.
The Material Insights platform is designed to support risk scoping as part of a company due diligence efforts by bringing together expert insights, data, and information published by reputable sources on the specific conditions each supply chain featured on the site, whether a raw or recycled material.