Factsheet – Trading raw materials responsibly
Global trade rules on raw materials are underpinned by standards. Those who set them decide who trades, whose practices are legitimised, whose voices count, and how resources are governed. Trade rules and related standards must be worthy of people and planet. Our factsheet shows how.
Demand for raw materials is rising – so are the risks
Minerals like lithium, cobalt, and rare earths are essential for clean technologies, ICT, and defence – with global demand rising fast, and trade restrictions with it. But their extraction and processing drive deforestation, water depletion and pollution, biodiversity loss, and human rights violations.
Trade rules must be fit for purpose to reduce social and environmental threats. The traditional trade structure, overseen by the World Trade Organisation (WTO), is often bypassed, increasingly replaced by informal partnerships that are inconsistent, difficult to monitor, and vague when it comes to sustainability standards. This puts climate, biodiversity, and justice at risk.
We need high-performing and transparent standards
International standards on raw materials that have strong environmental safeguards protect against greenwashing, unfair competition, and low ambition. But this can only be guaranteed if standards are applied consistently, transparently, and under certain conditions – including that civil society, local communities, and Indigenous Peoples are involved in developing them.
How to successfully use standards in trade
To lock in environmental performance, accountability, and transparency, international standards on the production and trade of minerals and metals must:
- Ensure meaningful and well-resourced participation of civil society and Indigenous Peoples in drafting, oversight, and assurance.
- Set explicit, measurable criteria on greenhouse gas accounting and reduction, water use and quality, tailings and waste management, and biodiversity protection.
- Require independent third-party auditing with public results and time-bound corrective actions.
- Protect and uphold human rights and Indigenous Peoples’ rights, including Free Prior and Informed Consent.
- Require effective grievance mechanisms that meet the UN Guiding Principles criteria.
- Align with the OECD Due Diligence Guidance.
Read the details in our factsheet!
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