Due diligence in the metal sector

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?

• OECD Due Diligence Guidance For Responsible Business Conduct - OECD
• Virtual Due Diligence Guidance for Responsible Mineral Supply Chains - OECD
• Stap 2 Risico-analyse’ – Social and Economic Council
• Learn how to implement step 2 - European Partnership for Responsible Minerals
• Frequently Asked Questions Step 2 – European Commission
• Due Diligence Risk Matrix : Overview of the most important risks in the metals and renewable energy value chains

Step 2 and the agreement

The agreement offers companies various instruments to implement the second step. Companies use the webtool to map their chain with a chain analysis. They can consult sources of information that indicate which risks in the chain can be found and analysed. The ‘heatmap’ is used to prioritize the risks and provide companies with clarity about the most salient risks in their chains. Companies submit the chain analysis and the heat map to the secretariat annually via the webtool. In addition to using the tools, companies have access to a network of experts to assist them in carrying out step 2.

In practice

In the context of step 2, an investigation has been launched within the agreement into health and safety risks in mines in Peru, Bolivia and Colombia. For more information, see this news article.