Cobalt mining has been notorious for producing negative human rights impacts. The project aimed at providing guidance on enhancing traceability and addressing such impacts along Dormakaba’s supply chains. It resulted in a study that was published in 2022 as a company-branded report and Dormakaba has implemented a number of measures based on its recommendations since.
The study maps the cobalt value chain and its key actors, assesses typical human rights risks as well as governance and traceability challenges along that value chain and provides solutions and practice-oriented suggestions for Dormakaba to address potential negative impacts. A key insight of the study is that current structures of the cobalt supply chain make full traceability near to impossible. At the same time, it is close to certain that companies within that supply chain inevitably are dealing with cobalt sourced in the Democratic Republic of the Congo (DRC), which produces two thirds of the global cobalt supply. 20- 30% of the cobalt that is coming from the DRC is mined by artisanal and small-scale miners, whose working conditions are often harrowing and notoriously unsafe. Child labor is a frequent occurrence on such mining sites, often in its worst forms where children are exposed to abuse, hazardous chemicals, demanding physical labor and dangerous and frightening (e.g. working in hand-dug deep, narrow and unstable tunnels) tasks. Industrial and artisanal mining are highly intertwined in the DRC and it is impossible to avoid artisanally mined cobalt even if one’s sourcing strategy focuses squarely on large-scale mines.
On the other hand, artisanal and small-scale mining is a key source of income and provides a living for thousands of families in the DRC. In some regions mining provides the only lifeline for such families. Thus, a key finding was that avoiding cobalt from the DRC altogether not only seems unrealistic but may turn out more damaging for such families than it helps improve their condition. Thus, informed and meaningful engagement, rather than disengagement is the right way to deal with the problem for companies like Dormakaba. However, no one company can create systemic change on its own. Consequently, companies sourcing cobalt from the DRC should embrace a collective responsibility for action which is what Dormakaba did, following the publication of the study. It is advisable to join initiatives and engage in broader alliances to combat problems on the ground as part of individual company action. The only way to address the traceability problem may indeed be to tackle the human rights challenges on the ground head on.
The study culminates in a set of recommendations including setting up a company-tailored due diligence mechanism, which includes and hinges on pro-active stakeholder-engagement on the ground; effective collaboration with various actors (including other companies) to amplify impact, adopt and spread best practices, and increase leverage; supporting and working toward the formalization of small-scale and artisanal mining in the DRC; assessing and joining one of the various local initiatives to improve conditions for small-scale and artisanal miners on the ground.
In 2024, Following the findings of the study, Dormakaba joined “The Hub for child labour prevention and remediation”, which is an initiative run by the two organizations Save the Children and The Center for Child Rights and Business. The initiative addresses the urgent need to remediate children involved in hazardous labour in small-scale mining communities in the DRC.
At the heart of this initiative is a comprehensive support system designed to replace the income families lose when children are removed from mining. Living stipends are provided to families, ensuring they can maintain their livelihoods without resorting to exploitative labour practices. Children receive access to quality education, tailored to their needs and aspirations, alongside healthcare services. To ensure the effectiveness of the system, dedicated case managers work closely with each child and their family, providing regular follow-ups and adapting the remediation plan as needed. This consistent, personalized approach continues until the child turns 16.
With its comprehensive framework and long-term focus, this initiative serves as a model for transformative action in the fight against child labour. As Dormakaba asserts, the findings of our study “were pivotal in shaping this strategy, as they evidenced that the complexity of cobalt supply chains requires more than transparency; it demands a commitment to collective responsibility for action by the stakeholders involved across the supply chain.” (Statement by Serena Alonso, Human Rights Specialist at Dormakaba, Nov. 22, 2024)
Professor of Business Ethics
