Batteries will be a major driver in reducing the carbon footprint of the transport and power sectors through the use of electric vehicles and renewable energy. To help companies and governments, the Global Battery Alliance designed 10 guiding principles for the creation of a sustainable battery chain by 2030.
These principles are intended as the first step in a responsible,
sustainable battery value chain as set out in the Global Battery Alliance’s “
A Vision for a Sustainable Battery
Value Chain in 2030”. Implementing commitments will be based
on existing standards such as the Organisation for Economic Co-operation and
Development (OECD)’s Due Diligence Guidance and economically viable
considerations for a circular and low carbon economy.
At the Annual Meeting 2020, 42 organizations, including businesses from
mining, chemicals, battery, automotive and energy industries, representing
annual revenue of close to a trillion dollars, along with international
organizations and global NGOs, have agreed on the 10 guiding principles.
They include maximizing the productivity of batteries, enabling a
productive and safe second life use, circular recovery of battery materials,
ensuring transparency of greenhouse gas emissions and their progressive
reduction, prioritizing energy efficiency measures and increasing the use of
renewable energy, fostering battery-enabled renewable energy integration, high
quality job creation and skills development, eliminating child and forced
labour, protecting public health and the environment and supporting responsible
trade and anti-corruption practices, local value creation and economic
diversification.
“We all need batteries to power the clean revolution. However, we must
ensure violations of human rights do not occur anywhere in the value chain,
that local communities benefit and that battery production is sustainable.
These guiding principles are an important first step to build a value chain
that can deliver on this promise while supporting societies and economies at
the same time”, said Dominic Waughray, Managing Director, World Economic Forum.
Organizations supporting the realization of a battery value chain that
meets these principles include AB Volvo, African Development Bank, Amara Raja
Batteries , Analog Devices, Audi, BASF, Bayerische Motoren Werke (BMW), Cadenza
Innovation, China EV100, Clarios, ClimateWorks Foundation, Enel, Envision
Group, Eurasian Resources Group (ERG), Everledger, Fairphone, Fundacion Chile,
Good Shepherd International Foundation, Greentech Capital Advisors, Groupe
Renault, Honda, IMPACT, International Institute for Environment and Development
(IIED), International Justice Mission (IJM), Johnson Matthey, International
Lead Association (ILA),
Leaseplan, Office of the President of the Democratic Republic of the Congo
(DRC), OPTEL Group, Pact, Pure Earth, Responsible Battery Coalition, SGS, SK
Innovation, Sociedad Química y Minera de Chile SA (SQM), The Faraday
Institution, The World Bank Group, Trafigura, Transport & Environment
(T&E), Umicore, United Nations Children’s Fund (UNICEF), the Volkswagen
Group and the World Business Council for Sustainable Development (WBCSD). To
realize the full ambition of these principles, the Global Battery Alliance is
actively seeking the endorsement of additional organizations to ensure full
participation throughout the battery value chain.
This alignment among key players in the battery market establishes the
basis for a transparent accountability system. It will guide the development of
a global digital battery information disclosure system referred to as the
“Battery Passport”, which is designed to enable a transparent value chain, for
example, with respect to human rights and the environmental footprint.
What the signatories say
“Je suis ravi d’annoncer que le Gouvernement de la République
Démocratique du Congo soutient la Global Battery Alliance et ses dix principes
directeurs. J’invite les membres de mon gouvernement à travailler avec
l’Alliance afin d’établir une chaîne de valeur durable du cobalt. C’est
indispensable pour permettre la transition énergétique.” Felix Tshisekedi, President of the Democratic
Republic of the Congo (DRC)
“Amara Raja is fully committed to support the transition to a carbon
neutral energy footprint across the globe and recognizes that advanced battery
technologies have a critical role to play to enable and accelerate this
transition. Amara Raja is delighted to be part of the Global Battery Alliance
efforts to drive the transition and endorses the ‘Principles and Commitments to
Realize the 2030 Vision’. The principles and commitments as articulated by the
GBA provide a framework for implementation of a scalable and sustainable
approach for faster adoption of smart energy solutions for a greener future.” Vijayanand Kumar Samudrala, Chief Executive
Officer, Amara Raja Batteries
“Analog Devices strongly believes that technology is one of the key
enablers for a sustainable, circular and ultimately regenerative economy.
Batteries will play a key part in enabling this shift as the world accelerates
towards renewable energy sources. It is vital that the value chain forming
around batteries is both sustainable and just across the entire lifecycle of
the battery, from extraction and formation to second life and recycling. At
Analog Devices, we support the work of the Global Battery Alliance and fully
endorse the 10 principles for a sustainable value chain.” Vincent Roche, Chief Executive Officer,
Analog Devices
“For Audi, batteries are key on our way to carbon neutral mobility. To
ensure that this technology is thoroughly sustainable, we welcome and support
the GBA initiative and our common principles. We believe in the power of joint
collaboration across all stakeholders in the entire value chain of batteries
and therefore encourage others to join the GBA as well. Audi is striving for a
reliable “sustainability performance seal”, carried out by robust stakeholder
engagement, which stands as a global reference for clean and ethically produced
batteries.” Hildegard Wortmann, Member
of the Board of Management, Sales and Marketing, Audi
“These guiding principles are a milestone for the Global Battery
Alliance to promote a sustainable and responsible battery value chain. As a
founding member of the alliance, BASF welcomes a joint vision and concrete
actions, such as the planned battery passport.” Martin Brudermüller, Chairman of the Board of Executive Directors of BASF
and Co-Chair of the Global Battery Alliance
“An efficient, transparent, sustainable global value chain is vital to
ensuring that the battery industry continues to meet unprecedented demand in an
innovative and socially responsible manner. The guidelines put forth by the
Global Battery Alliance provide a thoughtful and actionable approach for ensuring
that. By bolstering the role that energy storage plays in combatting climate
change while lifting underserved populations up out of energy poverty, the
GBA’s efforts can benefit our whole society.” Christina Lampe-Onnerud, Founder and Chief Executive Officer, Cadenza
Innovation
“The 10 principles of the Global Battery Alliance have far-reaching
significance for the development of the global battery industry, and will play
a guiding role in the orderly and sustainable development of the battery value
chain. As a think tank and exchange platform for China’s electric vehicle
industry, China EV100 has been committed to conducting research and
cross-industry exchanges on the entire value chain and recycling of the battery
industry for the past six years. We are willing to work with GBA to help the
energy transition and decarbonization of the transportation industry along with
the sustainable development of the electric vehicle and battery value chain.” Liu Xiaoshi, Executive Deputy
Secretary-General, China EV100
“When combined with zero-carbon electricity from sources like wind and
solar, batteries can cleanly power our vehicles, homes and businesses, reducing
climate pollution and advancing sustainable development. As an organization
dedicated to ending the climate crisis, the ClimateWorks Foundation supports
the work of the GBA and applauds its efforts to improve battery supply chain
sustainability in the mining and extraction industries and ensure greater
transparency and traceability.” Charlotte
Pera, President and Chief Executive Officer, ClimateWorks Foundation
“We support these principles as they are fully aligned with our strategy
and with commitments we have already made to the environment, society, human
and labour rights. The collaboration of the whole value chain to sustainably
supply battery storage systems is key to accelerate the energy transition. As
the world’s leading private operator of renewables and networks, we have
implemented tangible actions to foster a circular and sustainable value chain that
is respectful of human rights.” Francesco
Starace, Chief Executive Officer, ENEL
“As we convene for the 50th anniversary Davos meeting, the launch of the
10 key principles will help bring the Alliance one step closer to unlocking the
potential of batteries to power sustainable development. We are aiming to
ensure that the vast benefits to the global economy never come at the cost of
the most vulnerable communities. A key focus for ERG is working with all
Alliance members to eradicate child labour within the battery value chain.” Benedikt Sobotka, Chief Executive Officer of
Eurasian Resources Group and Co-chair of the Global Battery Alliance
“At Everledger, we believe technology is one of the greatest platforms
for change towards a low carbon economy. We not only support the principles of
the GBA, but also enable the global battery value chain to achieve ever
increasing levels of transparency for sustainability efforts.” Leanne Kemp, Chief Executive Officer,
Everledger
“It is time we as an industry make a joint effort in cleaning up our
battery supply chains. We welcome the GBA principles as an important step
towards this.” Monique Lempers,
Director Impact Innovation, Fairphone
“As non-corporate members of the Global Battery Alliance, we endorse the
GBA principles for the development of an economically, socially and
environmentally sustainable battery value chain. Aligning our diverse global
collaboration platform around the principles – placing the Sustainable
Development Goals and the critical connectivity of human rights and development
at the heart of the value chain – is an important step forward for the GBA. We
are committed to monitoring and implementing joint programmes to deliver
concrete progress against the principles, and developing clear and transparent
measuring tools, as we continue to support this critical effort.” Joint statement from Cristina Duranti,
Director, Good Shepherd International Foundation; Joanne Lebert, Executive
Director, IMPACT; Gary A. Haugen, Chief Executive Officer, International
Justice Mission; Karen Hayes, Vice-President, Mines to Markets, Pact; Charlotte
Petri Gornitzka, Assistant Secretary-General and UNICEF Deputy Executive
Director, Partnerships, United Nations Children’s Fund (UNICEF)
“We fully endorse the Global Battery Alliance’s bid to develop a
responsible and sustainable battery value chain. The world is going to need
many more batteries using different chemistries and technologies as demand for
energy storage continues to grow and we are encouraged that the 10 guiding
principles make reference to lead-based batteries that will continue to play a
significant role in achieving the UN sustainability goal to provide access to
clean and affordable energy for all. The GBA’s aim to foster the creation of a
sustainable battery value chain by 2030 is fully aligned with lead battery
industry’s material stewardship initiative and our own guiding principles.” Andy Bush, Managing Director, International
Lead Association
“Johnson Matthey is very pleased to support the 10 principles of the
GBA, which underpin our company’s vision to build a cleaner, healthier world.
This a key milestone for the battery community as we align to deliver common
objectives that will power a sustainable energy transition in a way that
safeguards and benefits the whole supply chain and the planet. JM is fully
committed to working together with the GBA on these critically important
efforts.” Robert MacLeod, Chief
Executive Officer, Johnson Matthey
“Electric vehicles and the batteries that power them are central to the
fight against climate change. LeasePlan therefore fully supports the work of
the Global Battery Alliance to ensure we have safe, clean and ethically
produced batteries. Collectively, we are determined to build a 100% sustainable
battery value chain and ensure the industry maintains its social licence to
operate.” Tex Gunning, Chief Executive
Officer, LeasePlan
“We welcome the adoption of GBA principles that explicitly refer to the
need for human rights standards in the battery supply chain. To effectively
address child labour and other human rights issues, formalization of artisanal
and small-scale mining (ASM) sites is key. The GBA is ideally positioned to
pool knowledge and resources to develop ASM formalization standards that can be
implemented in the DRC.” Michael
Posner, Director of the NYU Stern Center for Business and Human Rights and
Dorothée Baumann-Pauly, Director of the Geneva Center for Business and Human
Rights
“At OPTEL, we are proud to use our traceability expertise to contribute
to the achievement of the GBA principles towards a sustainable battery value
chain. This project fits perfectly with our mission of using innovative
technologies to create a more sustainable world and we recognize all the
organizations jointly involved in this effort.” Louis Roy, President, OPTEL GROUP
“The Global Battery Alliance is moving the needle with respect to
batteries. Health problems from battery recycling (especially lead-acid
batteries) are ridiculously enormous. We need to avoid a similar problem with
lithium batteries, as their boom continues. GBA is the group that can make this
happen.” Richard Fuller, President,
Pure Earth
“Batteries are becoming a significantly more important part of our
energy infrastructure, economy and national security. A key part of sustaining
our growing, battery-reliant energy infrastructure is to conserve human and
natural resources. We at the Responsible Battery Coalition are proud to join
with our fellow members of the Global Battery Alliance in supporting these
principles and working together in creating a sustainable, humane and circular
battery value chain.” Steve
Christensen, Executive Director, Responsible Battery Coalition
“SK Innovation fully supports the 10 guiding principles and the GBA’s
ambition to build sustainable global battery value chain by 2030. This vision
and timeframe dovetails with SK Innovation’s ‘Green Balance 2030’ initiative,
which will accelerate our transition to a low carbon economy. Moreover, we
believe accurate measurement is the very first step in building momentum and
credibility for a sustainable value chain. SK group-wide socio-environmental
impact assessments demonstrate that our growing battery business is leading the
way with our decarbonization efforts.” Jun
Kim, President and Chief Executive Officer, SK Innovation
“In the last 25 years SQM has been operating and optimizing its
sustainable production process for lithium. SQM takes its responsibility
seriously in protecting the environment and ensuring the well-being of its
neighbouring communities. As a key element to achieve the goals of the Paris
Agreement, today we are taking another step, making a public and transparent
commitment to the principles of the Global Battery Alliance of the World
Economic Forum to ensure sustainable supply of lithium. SQM is proud to endorse
the GBA principles of the World Economic Forum. As a leading lithium producer,
we believe this is major step towards realizing a sustainable battery supply chain.”
Ricardo Ramos, Chief Executive Officer,
SQM
“We must diligently work together and support governments like that of
the DRC in their efforts to address shortcomings in the Lithium-ion value
chain. These challenges cannot be wished away. The adoption of the Global
Battery Alliance principles provides a welcome foundation in pursuit of the
responsible sourcing of materials such as cobalt, which are essential for the
transition to low carbon economies.” Jeremy Weir, Executive Chairman and
Chief Executive Officer, Trafigura
“Rechargeable Batteries are the best technology to achieve zero
emissions mobility and underpin climate neutral economy of the future. The
Global Battery Alliance should accelerate the transition to sustainably sourced
and produced batteries by enabling full traceability along the supply chain and
implementing the Battery Passport. GBA’s members include the world’s largest
mining and smelting companies so it is in their power to guarantee responsible,
safe and inclusive extraction of battery metals in developing countries.” Julia Poliscanova, Director, Transport &
Environment’s Clean Vehicles and E-Mobility Director
“I am very pleased that after over two years of intense work among many
key stakeholders of the battery value chain we have reached consensus on 10
challenging principles. In particular, the principles call for ‘immediately and
urgently eliminating child and forced labour’ from the batteries. Indeed, we
cannot accept that the pursuit of climate neutrality should in any way involve
child labour. Therefore (along with the immediate elimination of child labour)
I am prepared to pledge significant funds to support the work of a consortium
of NGOs in order to ensure that children are out of the mines and I invite
other members of the Global Battery Alliance to join me for the creation of
this fund.” Marc Grynberg, Chief
Executive Officer, Umicore
“At Volkswagen, our sustainability and social responsibility
requirements go well beyond production and cover the entire value chain. We do
not tolerate any infringements of environmental and social standards – this
applies to the entire supply chain. That’s why we support the GBA and are
committed to the 10 principles that were agreed today as a building block to
safeguard human rights and economic development consistent with the UN
Sustainable Development Goals.” Ralf
Pfitzner, Head of Sustainability, Volkswagen Group
Sustainable batteries are a must for our society to thrive within planet
boundaries. WBCSD welcomes the 10 principles for a sustainable value chain that
protects human rights and accelerate the transition to carbon neutrality, and
will continue to support the Global Battery Alliance members in their action
towards the vision for a sustainable battery value chain by 2030”, Maria Mendiluce, World Business Council for
Sustainable Development (WBCSD)