Social assessment of raw materials supply chains: A life-cycle-based analysis

The value chains of raw materials and semi-finished products can create both positive and negative impacts in society, local communities, consumers, and workers. Raw materials have also a strategic importance for enhancing the competitiveness of the European industry, and creating employment (EC - European Commission, 2017a). At European level, the secure and sustainable supply of raw materials from domestic sources and international markets are key objectives of the Raw Materials Initiative (EC - European Commission, 2008a). The relationship between low security of supply and poor governance in supplier countries is acknowledged and captured in the list of Critical Raw Materials for the EU (EC - European Commission, 2017b). Internationally, many of the Sustainable Development Goals launched by the United Nations in 2015 (UN General Assembly, 2015) address, directly or indirectly, the social dimension of sustainable development and, hence, are linked to the supply of raw materials, under several aspects. In the context of sustainability assessment, Life Cycle Thinking is a well-known concept. Social Life Cycle Assessment (SLCA) evaluates social and socio-economic impacts along the life cycle of products (from the raw materials extraction, processing, manufacture, use, end of life) using a mix of generic and site specific data. Studies can be focused on a specific supply chain, or they can look at different sectors in an entire economy. In this study, we used a SLCA database for assessing and comparing the social risks associated with the supply chain of raw materials sectors at the macro scale in EU, and in a set of extra-EU countries. Negative social impacts are expressed in terms of potential risk to be exposed to negative social conditions while potential positive contributions are expressed using an opportunity evaluation. The economic sectors under investigation are those producing primary raw materials and semi-finished products, both from abiotic and biotic resources. According to the Eurostat NACE classification they are defined as: mining and quarrying; manufacture of basic metals; manufacture of non-metallic mineral products; forestry and logging; manufacture of paper and paper products; manufacture of wood and of products of wood. A set of social aspects (called subcategories, or areas of concern) was selected from those available in the database, according to criteria of relevance, data quality, etc. These include health and safety; freedom of association and collective bargaining; child labour; fair salary; working time (for the stakeholders category “workers”); respect of indigenous rights and migration (for the stakeholders category “local community”); corruption (for the stakeholders category “actors in the value chain”) and contribution to economic development (for the stakeholders category “society”). While the latter is a positive impact, the others are negative impacts occurring in the value chain. The initial results of the analysis compare social risk in the European raw materials supply chain with those of six extra-EU countries, for the set of selected social aspects. The contribution analysis shows social hotspots within a supply chain, highlighting sectors and locations that are mostly contributing to social risk in a certain subcategory. Data quality and sources of uncertainty are also discussed. As a general remark from the results of the preliminary international comparison, the social performance appears to be linked to socio-economic conditions of the country where the production activity occurs. Social risk seems to reflect also the development of a country and, to some extent, its governance. Given the granularity of the data used to assess social aspects (mostly at country, or macro-sector level), specific features of raw materials sectors are likely not captured in this analysis. This macro-scale assessment provides a first-screening assessment of supply chains, which can be used for prioritizing areas for more detailed investigation and for supporting due diligence operations at macro/sectorial scales. However, it should be complemented with bottom-up analyses in order to get a better understanding of the social consequences of more specific economic activities.JRC.D.3-Land Resource

Sustainability Assessment of Second Life Application of Automotive Batteries (SASLAB): JRC Exploratory Research (2016-2017): Final technical report: August 2018

The fast increase of the electrified vehicles market will translate into an increase of waste batteries after their use in electrified vehicles (xEV). Once collected, batteries are usually recycled; however, their residual capacity (typically varying between 70% and 80% of the initial capacity) could be used in other applications before recycling. The interest in this topic of repurposing xEV batteries is currently high, as can be proven by numerous industrial initiatives by various types of stakeholders along the value chain of xEV batteries and by policy activities related to waste xEV batteries. SASLAB (Sustainability Assessment of Second Life Application of Automotive Batteries), an exploratory project led by JRC under its own initiative in 2016-2017, aims at assessing the sustainability of repurposing xEV batteries to be used in energy storage applications from technical, environmental and social perspectives. Information collected by stakeholders, open literature data and experimental tests for establishing the state of health of lithium-ion batteries (in particular LFP/Graphite, NMC/Graphite and LMO-NMC/Graphite based battery cells) represented the necessary background and input information for the assessment of the performances of xEV battery life cycle. Renewables (photovoltaics) firming, photovoltaics smoothing, primary frequency regulation, energy time shift and peak shaving are considered as the possible second-use stationary storage applications for analysis within SASLAB. Experimental tests were performed on both, new and aged cells. The majority of aged cells were disassembled from a battery pack of a used series production xEV. Experimental investigations aim at both, to understand better the performance of cells in second use after being dismissed from first use, and to provide input parameters for the environmental assessment model. The experimental tests are partially still ongoing and further results are expected to become available beyond the end of SASLAB project. To obtain an overview of the size of the xEV batteries flows along their life cycle, and hence to understand the potential size of repurposing activities in the future, a predictive and parametrized model was built and is ready to be updated according to new future data. The model allows to take into account also the (residual) capacity of xEV batteries and the (critical) raw materials embedded in the various type of xEV batteries. For the environmental assessment, an adapted life-cycle based method was developed and applied to different systems in order to quantify benefits/drawbacks of the adoption of repurposed xEV batteries in second-use applications. Data derived from laboratory tests and primary data concerning energy flows of the assessed applications were used as input for the environmental assessment. Under certain conditions, the assessment results depict environmental benefits related to the extension the xEV batteries’ lifetime through their second-use in the assessed applications. In the analysis, the importance of using primary data is highlighted especially concerning the energy flows of the system in combination with the characteristics of the battery used to store energy. A more comprehensive environmental assessment of repurposing options for xEV batteries will need to look at more cases (other battery chemistries, other reuse scenarios, etc.) to derive more extensive and firmer conclusions. Experimental work is being continued at the JRC and the availability of further data about the batteries' performances could allow the extension of the assessment to different types of batteries in different second-use applications. A more complete sustainability assessment of the second-use of xEV batteries that could be useful to support EU policy development will also require more efforts in the future in terms of both the social and economic assessment.JRC.D.3-Land Resource

Raw Materials Information System (RMIS): 2019 Roadmap & Progress Report - Context, content & foreseen priorities

The European Commission's (EC) Raw Materials Initiative (RMI) emphasises that raw materials are essential for the sound and sustainable functioning of Europe’s industries and, in a broader context, of Europe’s economy and society. The EC is committed to promote the competitiveness of industries related to raw materials. These industries play an important role in many downstream sectors in the European Union (EU) such as construction, chemicals, automotive, aerospace, machinery, pharmacy, equipment, renewable energy devices, and defence. These sectors have a combined added-value of around EUR 1,000 billion and provide employment for some 30 million people. Securing an undistorted supply of raw materials and, in particular, Critical Raw Materials (CRMs) is thus crucial and requires a sound and continuously developed knowledge base, namely the European Union Raw Materials Knowledge Base (EURMKB), as highlighted in the Strategic Implementation Plan (SIP) of the European Innovation Partnership (EIP) on Raw Materials. In this context, and responding to a specific action of the 2015 Circular Economy Communication, the JRC is further advancing the EC's Raw Materials Information System (RMIS), which was first released in March 2015. The markedly upgraded second version (hereinafter “RMIS 2.0”, or simply “RMIS”) was announced in the 2017 JRC “RMIS Roadmap & Progress Report” and officially launched during the 2017 “Raw Materials Week”, organised by DG GROW in Brussels. RMIS 2.0 broadened goal and scope of the first version, significantly expanded the network of its knowledge providers, and responded – often in quantitative terms – to the latest policy and knowledge needs on raw materials. In particular, important thematic sections such as “raw materials’ profiles”, “country profiles”, “supply chain viewer” and “raw materials knowledge gateway” were included. Since its conception and first release in 2015, RMIS has been developed in close cooperation with DG GROW. DG GROW helps the JRC to recognise policy and knowledge needs related to raw materials, and supports the JRC in identifying how RMIS can best meet these needs. RMIS development is supported by (and should be intended as part of) a well-established and extensive network of knowledge providers in the area of raw materials, which includes – among others – EC-funded projects, European Agencies (EASME, EEA, etc.), academia, European Geological Surveys, industry and business associations. Interactions and knowledge exchanges among the various stakeholders of this network are promoted in the yearly “RMIS Workshop” events, held at the JRC in Ispra, Italy, which attracts every year an increasing number of participants. Today, the RMIS is the EC’s reference web-based knowledge platform on non-fuel, non-agriculture raw materials from primary (extracted/harvested) and secondary (recycled/recovered) sources. RMIS responds to the need of strengthening the European Union Raw Materials Knowledge Base (EURMKB) and acts as the core access point to such knowledge and as interface for policy support. The knowledge accessible through RMIS is, to the extent possible, made available for the European Union (from regional, national and EU data), with the ambition of providing it in a harmonized way. This 2019 “RMIS Roadmap & Progress Report” presents RMIS in its latest form, highlights the progress made since 2017, connects this with most recent and relevant policy and knowledge needs on raw materials, and provides an overview of the development goals that could help fulfil such needs.JRC.D.3-Land Resource

Social risk in raw materials extraction: a macro-scale assessment

Raw materials are essential for any modern society and contribute to the achievement of many Development Goals [1]. On the other side, the production of materials can generate severe social impacts, usually in the case of poor governance and weak institutional and legal frameworks. Many authorities, including the European Union, have issued regulations to improve transparency in product supply chains. This is also mirrored in some private sector initiatives. For instance, the EU Regulation on Conflict Minerals [2] requires that companies importing tin, tungsten, tantalum and gold by high-risk and conflict-affected areas perform a supply chain due diligence analysis to facilitate that suppliers are not involved with conflicts, human right violations, illegal trade, etc. Given the above context, assessing social considerations in supply chains is essential both for policy and business in order to progress towards the sustainable supply of raw materials and contributing to several development goals. Life Cycle Assessment (LCA) theory and methodologies help to assess complex supply chains and provide insights into impacts to the environment and to socio-economic systems in a structured manner. They complement other types of assessments, such as site specific analyses. In particular, Social LCA (SLCA) offers a framework for the quantitative assessment of social impacts in products, sectors, organizations [3]. The purpose of this study is to apply SLCA methodology and selected databases to perform a macro-scale (top-down) assessment of social risk of the mining and quarrying sectors in a set of six extra-EU countries, compared to the EU-28 average. This approach has also been considered in background developments for the “2018 Raw Material Scoreboard” developed by European Commission. Results show the social performance of the EU mining and quarrying sector compared to extra-EU countries. In addition, these results offer an insight into the contribution of upstream phases and locations in the minerals supply chain. In the case of the EU mining and quarrying sector, the three top locations contributing to the impact category “fair salary” are India, China and UK. Since supply chain due diligence is increasingly required by legislation, and also by some companies/associations, relevant analytical tools and data supporting supply chain analyses will be therefore extremely useful for business and policy makers. The approach and results could be a basis for an evaluation of e.g. social footprint assessments and evaluation of trading partners. At the same time, robustness of results and data gaps must be carefully evaluated.JRC.D.3-Land Resource

Bridging tools to better understand environmental performances and raw materials supply of traction batteries in the future EU fleet

Sustainable and smart mobility and associated energy systems are key to decarbonize the EU and develop a clean, resource efficient, circular and carbon-neutral future. To achieve the 2030 and 2050 targets, technological and societal changes are needed. This transition will inevitably change the composition of the future EU fleet, with an increasing share of electric vehicles (xEVs). To assess the potential contribution of lithium-ion traction batteries (LIBs) in decreasing the environmental burdens of EU mobility, several aspects should be included. Despite environmental assessments of batteries along their life-cycle have been already conducted using Life-Cycle Assessment, a single tool unlikely provides a complete overview of such a complex system. Complementary information is provided by Material Flow Analysis and Criticality Assessment, with emphasis on supply risk. Bridging complementary aspects can better support decision-making, especially when different strategies are simultaneously tackled. Results pointed out that the future life-cycle GWP of traction LIBs will likely improve, mainly due to more environmental-friendly energy mix and improved recycling. Despite second-use will post-pone available materials for recycling, both these end-of-life strategies allow to keep the values of materials in the circular economy, with recycling also contributing to mitigate the supply risk of Lithium and Nickel.JRC.D.3-Land Resource

Can S-LCA methodology support responsible sourcing of raw materials in EU policy context?

Purpose Access, affordability and sustainability of raw material supply chains are crucial to the sustainable development of the European Union (EU) for both society and economy. The study investigates whether and how the social life cycle assessment (S-LCA) methodology can support responsible sourcing of raw materials in Europe. The potential of social indicators already available in an S-LCA database is tested for the development of new metrics to monitor social risks in raw material industries at EU policy level. Methods The Product Social Impact Life Cycle Assessment (PSILCA) database was identified as a data and indicators source to assess social risks in raw material industries in EU-28 and extra-EU countries. Six raw material country sectors in the scope of the European policy on raw materials were identified and aggregated among those available in PSILCA. The selection of indicators for the assessment was based on the RACER (Relevance, Acceptance, Credibility, Ease, Robustness) analysis, leading to the proposal of 9 social impact categories. An S-LCA of the selected raw material industries was, thus, performed for the EU-28 region, followed by a contribution analysis to detect direct and indirect impacts and investigate related supply chains. Finally, the social performance of raw material sectors in EU-28 was compared with that of six extra-EU countries. Results and discussion Considering the overall social risks in raw material industries, “Corruption”, “Fair salary”, “Health and safety” and “Freedom of association and collective bargaining” emerged as the most significant categories both in EU and extra-EU. EU-28 shows an above-average performance where the only exception is represented by the mining and quarrying sector. An investigation of the most contributing processes to social impact categories for EU-28 led to the identification of important risks originating in the supply chain and in extra-EU areas. Therefore, the S-LCA methodology confirmed the potential of a life cycle perspective to detect burdens shifting and trade-offs. However, only a limited view on the sectoral social performance could be obtained from the research due to a lack of social data. Conclusions The S-LCA methodology and indicators appear appropriate to perform an initial social sustainability screening, thus enabling the identification of hotspots in raw material supply chains and the prioritization of areas of action in EU policies. Further methodological developments in the S-LCA field are necessary to make the approach proposed in the paper fully adequate to support EU policies on raw materials.JRC.D.3-Land Resource

Sustainability Assessment of Second Life Application of Automotive Batteries (SASLAB) - JRC Exploratory Research (2016-2017) Final technical report August 2018

The fast increase of the electrified vehicles market will translate into an increase of waste batteries after their use in electrified vehicles (xEV). Once collected, batteries are usually recycled; however, their residual capacity (typically varying between 70% and 80% of the initial capacity) could be used in other applications before recycling. The interest in this topic of repurposing xEV batteries is currently high, as can be proven by numerous industrial initiatives by various types of stakeholders along the value chain of xEV batteries and by policy activities related to waste xEV batteries. SASLAB (Sustainability Assessment of Second Life Application of Automotive Batteries), an exploratory project led by JRC under its own initiative in 2016-2017, aims at assessing the sustainability of repurposing xEV batteries to be used in energy storage applications from technical, environmental and social perspectives. Information collected by stakeholders, open literature data and experimental tests for establishing the state of health of lithium-ion batteries (in particular LFP/Graphite, NMC/Graphite and LMO-NMC/Graphite based battery cells) represented the necessary background and input information for the assessment of the performances of xEV battery life cycle. Renewables (photovoltaics) firming, photovoltaics smoothing, primary frequency regulation, energy time shift and peak shaving are considered as the possible second-use stationary storage applications for analysis within SASLAB. Experimental tests were performed on both, new and aged cells. The majority of aged cells were disassembled from a battery pack of a used series production xEV. Experimental investigations aim at both, to understand better the performance of cells in second use after being dismissed from first use, and to provide input parameters for the environmental assessment model. The experimental tests are partially still ongoing and further results are expected to become available beyond the end of SASLAB project. To obtain an overview of the size of the xEV batteries flows along their life cycle, and hence to understand the potential size of repurposing activities in the future, a predictive and parametrized model was built and is ready to be updated according to new future data. The model allows to take into account also the (residual) capacity of xEV batteries and the (critical) raw materials embedded in the various type of xEV batteries. For the environmental assessment, an adapted life-cycle based method was developed and applied to different systems in order to quantify benefits/drawbacks of the adoption of repurposed xEV batteries in second-use applications. Data derived from laboratory tests and primary data concerning energy flows of the assessed applications were used as input for the environmental assessment. Under certain conditions, the assessment results depict environmental benefits related to the extension the xEV batteries’ lifetime through their second-use in the assessed applications. In the analysis, the importance of using primary data is highlighted especially concerning the energy flows of the system in combination with the characteristics of the battery used to store energy. A more comprehensive environmental assessment of repurposing options for xEV batteries will need to look at more cases (other battery chemistries, other reuse scenarios, etc.) to derive more extensive and firmer conclusions. Experimental work is being continued at the JRC and the availability of further data about the batteries' performances could allow the extension of the assessment to different types of batteries in different second-use applications. A more complete sustainability assessment of the second-use of xEV batteries that could be useful to support EU policy development will also require more efforts in the future in terms of both the social and economic assessment

Raw Materials Scoreboard

The Raw Materials Scoreboard is an initiative of the EIP on raw materials. It presents relevant and reliable monitoring information that informs government, industry, and other stakeholders inline with the overarching objectives of this EIP. The Scoreboard is published every two years, with the 2018 Scoreboard being the second edition of the series