The success of renewable energy technologies—like batteries, electric vehicles, wind turbines, and solar panels—depends on securing critical raw materials such as copper, cobalt, and nickel. However, ensuring an equitable and ethical supply chain for these resources presents significant challenges for industries, particularly in the chemical and mining sectors.
Experts warn that failure to address issues like human rights abuses, biodiversity loss, and greenhouse gas emissions could undermine the energy transition entirely. Famke Schaap, sustainability expert at Hyacint Consult, highlights the growing complexity of supply chains as companies diversify sourcing globally, often from low- and middle-income countries. “Raw materials supply chains are complex, with lack of traceability from the manufacturing or processing down to the mine or agriculture area of origin, and hence no guarantees that human and environmental conditions are respected,” she explains.
Collaboration across industries is crucial to tackling these challenges. According to Charlie Tan, CEO of the Global Impact Coalition (GIC):
“New business models are needed to transform supply chains into supply circles, fostering circularity and sustainability. The transition demands a fundamental shift in how industries collaborate.”
GIC exemplifies this approach through initiatives like the Automotive Circular Plastics project, which brings together the entire value chain—from chemical manufacturers to recyclers—to address bottlenecks in plastics recovery.
The call to action is clear: companies must move beyond “box-ticking” ESG compliance. Instead, they must adopt continuous, risk-based due diligence to ensure resilient, sustainable supply chains. As Tan puts it, “Connections enable companies to reduce risks and secure the investments and offtake agreements needed to scale innovative solutions, cut emissions, and accelerate the sustainable transition.”
This collaborative, systemic approach is essential for creating a net-zero future powered by renewable energy.
