Environmental, Social and Governance Issues Associated With Sourcing Materials
Material Insights uses a proprietary approach to rate the importance of supply chain ESG issues for downstream users of materials based on information contained in publicly available reports.
Each material is assigned a score to measure the strength of association with 19 different environmental, social or governance issues. The material’s strength of association with each ESG issue is categorised on a scale ranging from very low to very high, according to the severity and credibility of identified reports.
This data can be used by downstream users to help identify possible red flags that require further investigation, in accordance with the process recommended in the OECD’s Due Diligence Guidance for Responsible Supply Chains.
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Very low
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Low
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Moderate
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High
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Very High
| Social | Governance | Environmental | |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Negative perceptions of corporate citizenshipPublic criticism of corporate practices, particularly in relation to perceptions that companies act unethically or fail to fulfil social obligations in pursuit of profit. |
Community rights violations (OECD Annex II)Violations of human rights, including the rights to life, health, property, and a healthy environment, arising from commercial activities such as mining or heavy industry. |
Forced LabourWork that is performed involuntarily or through coercion. |
Company-community conflict (non-Annex II)Violent or non-violent protests, disputes, or conflicts, involving companies and members of communities affected by their activities. |
Child labourThe employment of children in work that is harmful to their mental or physical development, is dangerous, or interferes with their education. |
Indigenous Peoples rightsViolations of indigenous peoples’ land rights and threats to the preservation of their cultural heritage. |
Violence and conflict (Annex II)The direct or indirect support to non-state armed groups from actors engaged in material supply chains. |
Labour rightsViolations of international standards in relation to working conditions or freedom of association. |
Occupational health and safetyViolations of standards intended to ensure safe working conditions and protect workers from work-related injuries and illnesses. |
Disease prevalence in affected communitiesPublic health effects in communities affected by commercial activities. |
Non-payment of taxes (Annex II)The illegal evasion of taxes owed to governments, or the (legal) pursuit of ways to reduce tax liabilities. |
CorruptionThe abuse of authority to acquire illicit benefits or private gain, often in relation to the payment or receipt of bribes. |
Illicit financial flows (Annex II)Capital flows between countries where funds are illegally earned, transferred or utilised across international borders. |
Tailings breachesThe failure of a tailings dam or storage facility, resulting in potential for harm to humans or the environment. |
Animal rights |
PollutionThe introduction of harmful materials into the environment. |
Degraded/fragmented landscapesDamage caused to landscapes by human activity, resulting in the landscape suffering a loss of its natural productivity or being broken-up into disconnected fragments. |
DeforestationThe conversion of formerly forest habitats for activities such as agriculture, mining, or human settlement. |
Climate change |
Negative biodiversity and conservation impactHarm caused to animal or plant species as a result of human activities. |
Release of radiationExposure to radioactive material associated with mining or mine waste. |
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| Aluminium | Moderate | Moderate | Low | High | Moderate | Low | Moderate | Low | Moderate | Moderate | Moderate | Moderate | Low | Low | Low | Very high | Moderate | Low | Moderate | High | Very low | ||
| Bauxite | |||||||||||||||||||||||
| Boron | Very low | Very low | Low | Low | Very low | Very low | Very low | Low | Low | Low | Very low | Very low | Very low | Very low | Very low | Moderate | Low | Very low | Very low | Moderate | Low | ||
| Calcium | Low | Low | Low | Moderate | Low | Low | Low | Moderate | Low | Moderate | Low | Low | Moderate | ||||||||||
| Cerium | Low | Low | Low | ||||||||||||||||||||
| Chromium | Moderate | Low | Low | Moderate | High | Low | Low | Moderate | Moderate | Low | Moderate | Low | |||||||||||
| Cobalt | High | Very high | Very high | Very high | Very high | High | Very high | Very high | Very high | High | Very high | Very high | Moderate | Low | Low | Very high | Very high | Moderate | Moderate | Very high | Low | ||
| Copper | Very high | Very high | High | Very high | Very high | Very high | Very high | High | Very high | High | High | Very high | Moderate | Moderate | Low | Very high | Very high | Moderate | Moderate | Very high | Moderate | ||
| Dysprosium | Very low | Low | Low | Low | Low | Low | Low | Very low | Low | Moderate | Moderate | Low | Very low | Low | Very low | High | Moderate | Low | Low | Moderate | Moderate | ||
| Fluorite | Low | Low | Very low | Low | Low | Very low | Low | Very low | |||||||||||||||
| Gallium | Low | Low | Low | Low | |||||||||||||||||||
| Glass | Very low | ||||||||||||||||||||||
| Gold | High | Very high | Very high | Very high | Very high | Very high | Very high | Very high | Very high | Moderate | Very high | Very high | Very high | Low | Low | Very high | High | High | Moderate | Very high | Very low | ||
| Graphite | Very low | Very low | Low | Very low | Low | Low | Low | Low | Very low | Low | Low | Low | Very low | Very low | Very low | Moderate | Moderate | Low | Low | Moderate | Very low | ||
| Iridium | |||||||||||||||||||||||
| Iron | Moderate | Moderate | Low | High | Moderate | Moderate | Moderate | Low | High | Moderate | High | High | Moderate | Moderate | Low | Very high | Moderate | High | Moderate | Very high | Very low | ||
| Lead | Moderate | Low | High | Moderate | Low | Low | Low | Moderate | Very high | Low | Low | Low | Low | Very high | Moderate | Very low | Low | Moderate | |||||
| Leather | Low | Low | Low | Low | Moderate | Moderate | Moderate | Moderate | Moderate | ||||||||||||||
| Limestone | Moderate | Low | Low | Low | Low | Low | |||||||||||||||||
| Lithium | Moderate | Moderate | Low | Very high | High | High | Low | Moderate | Moderate | Low | Moderate | Moderate | Very low | Low | Very low | Very high | High | Moderate | Moderate | Very high | Low | ||
| Magnesium | Very low | Very low | Very low | Low | Very low | Low | Very low | Very low | Low | Low | Very low | Very low | Very low | Very low | Very low | Low | Very low | Low | Low | Low | Very low | ||
| Manganese | Moderate | Low | Low | Moderate | Moderate | High | Low | Moderate | Moderate | Moderate | Moderate | Moderate | Low | Very low | Low | High | Moderate | Low | Low | High | Very low | ||
| Metallurgical Coal | Low | Moderate | Low | Low | Moderate | Low | Low | Moderate | Moderate | Moderate | Low | Moderate | Low | High | Moderate | Very low | Moderate | Moderate | |||||
| Mica | Moderate | Low | Low | High | Moderate | High | Moderate | Moderate | Moderate | Moderate | Low | Low | Low | Low | |||||||||
| Molybdenum | Low | Low | Low | Low | Low | Low | Low | Low | Low | Low | Low | Low | Moderate | Low | Low | Low | Low | ||||||
| Neodymium | Very low | Very low | Very low | Low | Very low | Low | Very low | Very low | Low | Low | Very low | Very low | Very low | Very low | Very low | Moderate | Very low | Very low | Low | Low | Moderate | ||
| Nickel | Low | Moderate | Moderate | High | High | High | Moderate | High | Moderate | Moderate | Low | High | Very low | Moderate | Low | Very high | High | Moderate | Moderate | Very high | Very low | ||
| Niobium | Very low | Low | Moderate | Moderate | High | Very low | Moderate | Moderate | Moderate | Moderate | Moderate | Moderate | Very low | Very low | Very low | Moderate | Low | Low | Low | Moderate | Moderate | ||
| Palladium | Low | Low | Very low | Very low | Very low | Low | Low | Very low | Very low | Low | Very low | Moderate | Very low | Very low | Very low | Low | Low | Low | Very low | Low | Very low | ||
| Phosphorus | Low | Low | Low | Low | Low | Low | Moderate | Low | Moderate | Low | Low | Moderate | Moderate | Moderate | Low | ||||||||
| Platinum | Low | Low | Low | Low | Low | Low | Very low | Low | Low | Low | Moderate | Low | Low | Moderate | Low | Low | Low | Moderate | |||||
| Potassium | Low | Low | Low | Low | Low | Low | Low | Low | |||||||||||||||
| Rare Earth Elements | Low | Moderate | Moderate | Moderate | Low | Moderate | Moderate | Moderate | Moderate | Moderate | Low | Low | Very high | High | Low | Low | Moderate | High | |||||
| Rhodium | Low | Low | |||||||||||||||||||||
| Rubber | Low | Low | Low | Low | Low | Moderate | Low | Moderate | Low | Low | Moderate | ||||||||||||
| Scrap steel | Very low | Low | Low | Low | Low | ||||||||||||||||||
| Silica | |||||||||||||||||||||||
| Silicon | Low | Moderate | High | Low | Moderate | Very low | Moderate | Moderate | Moderate | Very low | Low | Low | Moderate | Moderate | Very low | Low | Low | Low | Very low | ||||
| Silver | Low | Moderate | Very low | High | High | Moderate | Moderate | Moderate | Moderate | Low | Moderate | Moderate | Low | Very low | Very low | High | Low | Low | Low | Moderate | Very low | ||
| Steel | Low | Very low | Very low | Moderate | Very low | Low | Very low | Very low | Moderate | Low | Low | Low | Very low | Very low | Moderate | Low | Low | Moderate | Low | Very low | |||
| Talc | Low | Moderate | Low | Low | Low | Low | |||||||||||||||||
| Tantalum | Moderate | Very high | High | Moderate | Very high | Low | Very high | High | High | Moderate | Very high | Very high | Moderate | Low | High | Moderate | Moderate | Low | Moderate | Moderate | |||
| Tin | Moderate | High | High | High | Very high | High | Very high | High | High | Moderate | Very high | Very high | Moderate | Low | Low | Very high | High | Moderate | Low | High | |||
| Titanium | Moderate | Moderate | Moderate | High | Moderate | Low | Low | Low | Moderate | Low | Moderate | Moderate | Low | Low | Moderate | Low | Moderate | Moderate | Moderate | ||||
| Tungsten | Moderate | High | High | Very low | Very high | Low | Very high | High | Moderate | Low | Very high | High | Moderate | Low | Moderate | Moderate | Low | Very low | Low | ||||
| Vanadium | Very low | Very low | Very low | Very low | Very low | Very low | Very low | Very low | Very low | Very low | Very low | Very low | Very low | Very low | Very low | Very low | Very low | Very low | Very low | ||||
| Zinc | Low | Moderate | Moderate | High | High | Moderate | Low | Moderate | Moderate | High | Low | Moderate | Low | Very high | Moderate | Very low | Moderate | ||||||
Social
Negative perceptions of corporate citizenship
Public criticism of corporate practices, particularly in relation to perceptions that companies act unethically or fail to fulfil social obligations in pursuit of profit.
Community rights violations (OECD Annex II)
Violations of human rights, including the rights to life, health, property, and a healthy environment, arising from commercial activities such as mining or heavy industry.
Forced Labour
Work that is performed involuntarily or through coercion.
Company-community conflict (non-Annex II)
Violent or non-violent protests, disputes, or conflicts, involving companies and members of communities affected by their activities.
Child labour
The employment of children in work that is harmful to their mental or physical development, is dangerous, or interferes with their education.
Indigenous Peoples rights
Violations of indigenous peoples’ land rights and threats to the preservation of their cultural heritage.
Violence and conflict (Annex II)
The direct or indirect support to non-state armed groups from actors engaged in material supply chains.
Labour rights
Violations of international standards in relation to working conditions or freedom of association.
Occupational health and safety
Violations of standards intended to ensure safe working conditions and protect workers from work-related injuries and illnesses.
Disease prevalence in affected communities
Public health effects in communities affected by commercial activities.
Governance
Non-payment of taxes (Annex II)
The illegal evasion of taxes owed to governments, or the (legal) pursuit of ways to reduce tax liabilities.
Corruption
The abuse of authority to acquire illicit benefits or private gain, often in relation to the payment or receipt of bribes.
Illicit financial flows (Annex II)
Capital flows between countries where funds are illegally earned, transferred or utilised across international borders.
Environmental
Tailings breaches
The failure of a tailings dam or storage facility, resulting in potential for harm to humans or the environment.
Animal rights
Pollution
The introduction of harmful materials into the environment.
Degraded/fragmented landscapes
Damage caused to landscapes by human activity, resulting in the landscape suffering a loss of its natural productivity or being broken-up into disconnected fragments.
Deforestation
The conversion of formerly forest habitats for activities such as agriculture, mining, or human settlement.
Climate change
Negative biodiversity and conservation impact
Harm caused to animal or plant species as a result of human activities.
Release of radiation
Exposure to radioactive material associated with mining or mine waste.