Powering a Sustainable Future: The Importance of Due Diligence in Battery Production
In today's world, sustainability and ethical practices are more important than ever.
Due Diligence in the EU Battery Regulation (2023/1542), published on 28/07/2023, is a critical step towards achieving these goals. The provisions of the Battery Regulation are valid for all battery types. It involves:
- Responsible Sourcing: Ensuring that raw materials like lithium and cobalt are obtained in an environmentally friendly and socially responsible manner. Due Diligence applies to the following materials, as listed in Annex X of the Battery Regulation:
- a) Cobalt
- b) Natural graphite
- c) Lithium
- d) Nickel
- e) Chemical compounds based on the raw materials listed in points (a) to (d), which are necessary for the manufacturing of the active materials of batteries.
- Minimizing Environmental Impact: Implementing practices that reduce waste and promote recycling, ensuring batteries are produced and disposed of sustainably.
- Transparency and Accountability: Maintaining clear records and reporting on sourcing and production practices to build trust and demonstrate compliance with regulations.
Benefits of Due Diligence:
- Protects the environment
- Ensures social responsibility
- Builds transparency and trust
- Manages risks effectively
- Enhances market access and competitiveness
Due Diligence can be challenging, given sometimes complex supply chains. However, it allows for a risk-based approach. Not the entire supply chain needs to be monitored, but rather the suppliers that pose the greatest risks, in terms of location or type of material.
The Due Diligence requirements of the EU Battery Regulation apply to various economic operators placing or commissioning batteries on the EU market. This includes manufacturers, importers, and distributors with a net turnover of EUR 40 million or more in the financial year preceding the last financial year, and that are part of a group, consisting of parent and subsidiary undertakings, which, on a consolidated basis, exceeds the limit of EUR 40 million.
By adhering to these principles, companies can not only meet regulatory requirements but also contribute to a greener and more ethical future.
At Vinçotte, a Kiwa company, we specialize in conducting audits to help companies identify gaps, indicate where the Due Diligence policy needs improvement, and evaluate corrective actions. Kiwa’s SEE certification framework can support companies in meeting these Due Diligence requirements. Partner with us to ensure you meet all regulatory standards and promote sustainable practices. For more information, visit Kiwa's SEE Certification page.
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