Sourcing cobalt in the Democratic Republic of the Congo for a responsible net-zero transition: Incentives, risks and stakeholders

Abstract

Net-zero technologies and the electrification of transport rely heavily on cobalt-containing equipment. Growing demand for cobalt entails environmental, social and economic sustainability risks of cobalt mining, particularly artisanal and small-scale mining (ASM) in the Democratic Republic of the Congo (DRC). Many studies have raised the importance of motivating stakeholders to source cobalt responsibly. Through a systematic literature review, we identify nine sustainability risks that need to be addressed in the cobalt supply chain, analyse measures for incentivising responsible cobalt sourcing, and map links between the sustainability risks and the measures, to elaborate on the engagement of downstream stakeholders and identify methodological gaps. We group such measures into four incentive mechanisms, where integrating ASM into the cobalt supply chain while further formalising the ASM sector (Incentive Mechanism III) is the key to addressing most sustainability risks. Further deconstructing Incentive Mechanism III demonstrates that upstream stakeholders and governments shoulder most responsibility for its implementation. Engagement of downstream companies (such as electric vehicle manufacturers) is inadequate, given their significant influence both on consumers and on the cobalt supply chain. To engage downstream stakeholders more actively, we recommend establishing dedicated ASM funding pools and providing training for ASM communities. • Cobalt in decarbonisation sparks debate on how to incentivise responsible sourcing. • Downstream stakeholders are barely engaged in responsible sourcing measures. • We systematically map 22 measures onto nine sustainability risks and stakeholders. • Implementing the 22 measures will ensure ethical cobalt for net zero transition. • We suggest how to reform incentives targeting specific stakeholder and risks.

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