The stricter the Supply Chain Act, the more important transparency becomes – with Finomet, we are well prepared
German companies are expected to take greater responsibility for their suppliers. For this reason, the government passed the Supply Chain Due Diligence Act for companies with 3,000 or more employees. Since January 1 of this year, it also applies to companies with 1,000 or more employees. This means the law reaches deeper into society and the economy. In addition, the supply chain is becoming even more of a selling point.
Transparent supply chains can protect people and the environment
The basic idea for a supply chain protection law emerged in April 2013, when the Rana Plaza textile factory in Bangladesh collapsed and more than a thousand people lost their lives. German companies had also produced there. However, last year’s cases involving BMW, Edeka and Rewe also show how important transparent supply chains are. In Moroccan cobalt production for BMW, large quantities of arsenic were released into the environment. Workers producing for Edeka and Rewe received starvation wages and were exposed to toxic pesticides.
For rare earths, origin is becoming increasingly important
The production of rare earths such as dysprosium oxide and terbium oxide also entails environmental risks. This makes it all the more important, especially here, that producing companies comply with environmental and labour standards. While Noble BC sources its rare earths and technology metals, e.g. gallium and germanium, exclusively from reputable producers, the main manufacturing country, China, has less stringent regulations than, for example, Europe. As a result, it is becoming increasingly important to be able to verify the origin and production of the goods.
Transparent supply chains through blockchain technology
This will become possible very soon with Finomet’s blockchain technology. Last year, we were delighted to receive the Financial Advisors Award from the Cash. media group for the best digital product. It impressed with the previously unique transparency in metal trading enabled by Finomet’s blockchain technology. Metal traders connected to Finomet will soon also be able to demonstrate that their supply chains are transparent. The possibilities far exceed those of an annual business report, as required by the Federal Office for Economic Affairs and Export Control (BAFA), which is responsible for monitoring compliance with due diligence obligations.
Consumers can benefit from “green” rare earths
Finomet gives us the opportunity to meet our responsibilities both to our economy and to the workers and people in the vicinity of the mine, as well as to the environment. To this end, Noble BC is focusing on projects for the production of “green” rare earths, such as the one in Norway. Consumers should be able to benefit from this very soon.