Due diligence in the metal sector

Step 2. Identify and assess actual and potential adverse impacts.

What is step 2?

Step 2 starts with identifying actual or potential adverse impact (risks) for people and the environment through your own activities and relationships, including the supply chains. Subsequently, an assessment is made of the company's involvement in the actual or potential adverse impact: did the company cause, contribute to, or is directly linked to the adverse impact? Finally, a company prioritises the most important risks based on the severity and likelihood of the risk occurring.

Want to know more about step 2?

Step 2 and the agreement

The agreement offers various instruments to implement the second step as a company. Companies use the template for the ‘List of due diligence information’ to map their chain. Once the chain has been mapped, companies use the ‘Overview of sources for analysing risks in the supply chain’. With the help of the ‘heat map’, companies can prioritise risks and gain clarity about the most salient risks in their chains. Companies are expected to submit the list of due diligence information and heat map to the Secretariat annually. In addition to using the tools, companies have access to a network of experts to assist them in carrying out step 2.

The overview with all tools can be found here.