A good news story for the metals industry and any manufacturing company with sourcing risks...
As ethical sourcing becomes a high-profile risk topic from both regulatory and human rights perspectives, addressing forced labor risks across the manufacturing and supply chains will become more important. Some considerations to address this risk include:
- Third-party due diligence
- Sourcing reviews, including on-site
- Manufacturing and processing reviews
- Monitoring changes to the sourcing process
- Understanding financial flows and sources that touch the supply chain
- Incentivizing ethical behavior from third-parties in contracts
- Implementing strong controls to track people, process, transnational and quality risk
The world's biggest metal exchange is changing its rules to combat child labor, money laundering, bribery and corruption. The London Metal Exchange will require producers that operate in high-risk and conflict zones to demonstrate that their products are responsibly sourced by 2022. It's a major policy shift for the 142-year-old exchange, which until now certified metals for trade only by evaluating qualities such as their shape, weight and chemical composition. Now it's trying to ensure that the metal that ends up in cars or electronic devices is ethically sourced. "Global consumers rightly demand action on responsible sourcing — and our industry must listen," CEO Matthew Chamberlain said in a statement.