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?
- 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
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.