Investors around the world call for responsible mining in nickel industry

The energy transition requires the use of minerals such as nickel. However, a growing number of reports point to the negative environmental and social impact of nickel mining in countries such as Indonesia and the Philippines. 31 investors have now signed a statement with the aim of integrating responsible mining practices and higher standards for the natural, environmental and social impact into nickel chains.

Header photo: nickel mine near Siuna, Central Sulawesi © Stephanie Broekarts

• 31 investors with combined assets under management of US$2.7 trillion have signed a statement demanding that companies improve environmental and social due diligence in the nickel supply chain for electric vehicle batteries.
• They call for the integration of strict requirements for responsible mining into mineral supply chain policies.
• Companies should make time-bound commitments to achieve a deforestation-free nickel chain.

Nickel is used to produce the cathode material for lithium-ion batteries used to power electric vehicles, among other things. The largest growth in demand for nickel over the next two decades is expected from the Electric Vehicle (EV) industry. At the same time, a growing number of reports point to the negative environmental and social impact of nickel mining in Southeast Asian countries, including Indonesia and the Philippines. Common problems include deforestation, water and air pollution, conflicts with local residents and biodiversity loss.

With the Bottom line! project, we are working with a broad coalition of civil society organisations towards a fair energy transition with the least possible impact on people and nature. One of our project partners is the Dutch Association of Investors for Sustainable Development (VBDO). Together with Rainforest Foundation Norway (RFN), they are committed to ensuring that 31 investors signed the declaration with the aim of integrating responsible mining practices and a higher standard of environmental and social impact into nickel chains.

Angélique Laskewitz, Executive Director of VBDO, explains: ‘Environmental impact is often not considered in downstream supply chain policies of EV battery producers and EV manufacturers. The requirement to respect the rights of Indigenous Peoples and local communities, as recognised in the UN Declaration on the Rights of Indigenous Peoples, is often neglected. We do not just need an energy transition, but a responsible one. We expect companies to conduct enhanced due diligence on biodiversity, pollution and climate change. Moreover, we expect companies to respect the rights of Indigenous Peoples and local communities, as well as give a time-bound commitment to make the nickel supply chain deforestation-free.’

The initiative is being supported by several national and international NGOs, including IUCN NL through the Forests for a Just Future and Bottom Line! programmes, Earthworks, Transport and Environment (T&E), Mighty Earth, Madani Berkelanjutan, Auriga Nusantara, Fern, Climate Rights International, Forest Watch Indonesia, Satya Bumi and AidEnvironment.