Faced with a revolution in the automotive sector, the European Union has decided to vote in favor of phasing out sales of combustion-powered cars by 2035. This measure would reduce greenhouse gas emissions. Above all, it is the perfect opportunity for the electric car market to develop actively. However, the electric car, which seems to be more responsible than the combustion-powered car, is a source of debate. Indeed, the production of an electric battery requires significant mineral extraction, which can give rise to environmental, social and societal problems. The electric battery sector is therefore subject to a number of regulations designed to limit these risks – including the EU Battery Regulation currently being rolled out.
the challenge
Our client wishes to overcome the limitations associated with the extraction of minerals such as cobalt and lithium, and to verify and optimize its supply chain in partnership with its suppliers. Ksapa provides its expertise to guarantee our customer’s compliance with regulatory requirements and the various demands of their customers and suppliers.
Through this control, our customer identifies the priority issues for the selected minerals, and is thus able to draw up an impactful action plan.
OUR APPROACH
In order to provide the best possible response to this request, Ksapa proposes to carry out an in-depth analysis of our customer’s processes, as well as international and national government regulations.
Thanks to its legal and environmental expertise, and its methodologies, Ksapa was able to do the following:
- Review our customer’s internal documents to map existing processes
- Identify laws and standards concerning electric batteries and mineral extraction, and select those for which our client is eligible. This initial analysis enables us to cover a broad, international field, while ensuring a good understanding of our customer’s compliance challenges in a tightening regulatory environment.
- Use the OECD Responsible Business Conduct Due Diligence framework (5 steps) to identify processes to be strengthened in the sourcing of the various minerals needed to build electric batteries. Set up an appropriate action plan specifying expectations and resources.
The ultimate aim of this supply chain audit is to enable a fast-growing company to set up its new industries in compliance with regulations, while meeting the requirements of its customers.
RESULTS & NEXT STEPS
As a result, our customer is able to stay ahead of the competition, anticipate regulatory changes and proactively secure its purchasing operations.
