In order to succeed with the Sustainable Development Goals, the mining of minerals will need to not only continue, but increase in the coming years. The extraction of minerals such as gold and cobalt is often associated with human rights violations and the financing of criminal enterprises. This has led to increased pressure on firms to implement effective responsible sourcing practices. While often seen as a major challenge to many firms, if leveraged correctly, responsible sourcing can be turned into significant competitive advantages and increased supply chain visibility. Given the need for more research in this area, the aim of this study is to understand what responsible sourcing practices are used among manufacturing companies so that an approach for responsible sourcing of minerals can be developed. Using a qualitative research design and following a systematic combining approach, interviews with large industrial manufacturers were conducted. Using thematic analysis, this thesis identifies the main drivers, enablers, barriers, and strategies used by manufacturing companies. While the findings show that responsible sourcing is on the agenda for all companies, it is clear that some firms take responsible sourcing more seriously than others. Therefore, it is suggested that firms need to depart from a cost-centric perspective and instead see the benefits and long-term value generated from responsible sourcing. Furthermore, the findings suggest that some companies are becoming increasingly aware of the need to know their supply chain, and how responsible sourcing practices can be beneficial by providing supply chain visibility. However, the current practices are limited because they are an inherently static representation of a dynamic system. The implementation of a supply chain digital twin is therefore presented as a potential way for firms to improve their responsible sourcing practices while at the same time gaining substantial business value. / För att lyckas med målen för hållbar utveckling måste brytningen av mineraler inte bara fortsätta, utan även öka under de kommande åren. Utvinning av mineraler som guld och kobolt är ofta förknippad med kränkningar av mänskliga rättigheter och finansiering av kriminella organisationer. Detta har lett till ett ökat tryck på företag att införa effektiva metoder för ansvarsfullt inköp. Även om det ofta ses som en stor utmaning för många företag kan ansvarsfullt inköp, om det används på rätt sätt, omvandlas till betydande konkurrensfördelar och bidra till ökad synlighet i leveranskedjan. Med tanke på behovet av mer forskning på detta område är syftet med den här studien att förstå vilka metoder för ansvarsfullt inköp som används bland tillverkningsföretag, så att ett tillvägagångssätt för ansvarsfullt inköp av mineraler kan utvecklas. Genom en kvalitativ forskningsdesign och enligt en systematisk kombinationsmetod genomfördes intervjuer med stora tillverkande företag. Med hjälp av tematisk analys identifieras i denna avhandling de viktigaste drivkrafterna, möjliggörarna, hindren och strategierna som används av tillverkningsföretag. Resultaten visar att ansvarsfullt inköp står på agendan för alla företag, men det är tydligt att vissa företag tar ansvarsfullt inköp på större allvar än andra. Därför föreslås det att företag måste avvika från ett kostnadsfokuserat perspektiv och istället se fördelarna och det långsiktiga värdet som genereras av ansvarsfullt inköp. Dessutom tyder resultaten på att vissa företag blir allt mer medvetna om behovet av att känna till sin leverantörskedja och hur ansvarsfulla inköpsmetoder kan vara fördelaktiga genom att ge större synlighet i leverantörskedjan. De nuvarande metoderna är dock begränsade eftersom de är en statisk representation av ett dynamiskt system. Implementeringen av en digital tvilling i försörjningskedjan presenteras därför som ett potentiellt sätt för företag att förbättra sina metoder för ansvarsfulla inköp samtidigt som de får ett betydande affärsvärde.

Manufacturers and suppliers in the tech industry, trading and utilizing minerals, are often unable to conduct substantial supply chain due diligence, due to reasons such as lack of competence, the scattered spread of information and fluid nature of their supply chains. Declaring whether a product has been responsibly sourced, or whether it contains conflict minerals or not, is almost impossible. This study is an exploration of the potential role of blockchain in mineral supply chain management, as a supplementary tool for carrying out due diligence. Well-performed supply chain due diligence should demand continuous status records of various measures of social sustainability, identifying impacts on human well-being. So, how may a blockchain solution for traceability in a mineral supply chain contribute towards ensuring responsible sourcing? Blockchain provides traceability of transactions through its immutable chain structure, and knowing an asset’s origin is vital in order to carry out supply chain due diligence. While the blockchain network has the potential to provide information on the digitally registered flow of an asset, the validity of the information of the physical and social qualities of the asset remains dependent on the actor adding it to the blockchain, leading to an inherent problem regarding the interface between the digital and the physical world, in application of blockchain in supply chains. Through a background study and interviews with researchers and professionals, this study proposes a set of requirements to take into account while addressing responsible sourcing via a blockchain solution. The study finds that a blockchain alone cannot ensure responsible sourcing, and further provides insight into the challenges and opportunities present in the industry and discusses the suitability of potential solutions. / Tillverkare och leverantörer inom techindustrin, som handlar med och drar nytta utav mineraler, är ofta oförmögna att genomföra djupgående företagsgranskningar i sina logistikkedjor, på grund av exempelvis kompetensbrist, vida utspridd information och kedjornas flytande natur. Att säkerställa ifall en produkt har utvunnits på ett hållbart sätt eller huruvida den innehåller konfliktmineraler är i det närmaste omöjligt. Denna studie utforskar blockkedjeteknikens potentiella roll i leverantörskedjor för mineraler, som ett kompletterande verktyg för att genomföra företagsgranskningar. Välgenomförda granskningar bör inkludera fortlöpande statusprotokoll för olika åtgärder gällande social hållbarhet, som identifierar utvinningens påverkan på mänskligt välmående. Så, hur kan en blockkedjelösning för spårbarhet i en leverantörskedja för mineraler bidra till att säkerställa hållbar utvinning? En blockkedja möjliggör spårbarhet av transaktioner genom sin oföränderliga kedjestruktur; samtidigt är kännedom om ursprunget hos en resurs avgörande för att genomföra företagsgranskningar i logistikkedjor. Ett blockkedjenätverk har potential att tillhandahålla information gällande det digitalt registrerade flödet hos en resurs, men informationens validitet gällande dess fysiska och sociala kvaliteter är fortsatt beroende av aktören som registrerar resursen på blockkedjan, vilket leder till ett ofrånkomligt problem gällande gränssnittet mellan den digitala och fysiska världen vid applicering av blockkedjor i leverantörskedjor. Utifrån en litteraturgenomgång och intervjuer med forskare och professionella, så föreslås i denna studie en kravlista att ta hänsyn till ifall blockkedjelösningar ska användas för att understödja hållbar utvinning. Studien visar att en blockkedja på egen hand ej kan säkerställa hållbar utvinning och ger vidare insikt i utmaningar och möjligheter inom industrin, samt diskuterar lämpligheten för potentiella blockkedjelösningar i dessa sammanhang.

Supply Chain Due Diligence (SCDD) is conducted by companies to minimise or even eliminate risks of being involved directly or indirectly in human rights violations. It is part of Human Rights Due Diligence (HRDD) requirement. Through their suppliers companies may be exposed to irresponsible business practices. Considering this, companies should be able to systematically formulate concise demand from their suppliers that they practice responsible business practices which respect human rights. Supplier Relationship Management (SRM) as management tool commonly assist companies to direct suppliers methodically in achieving their financial goals. This research attempts to repurpose SRM concepts to enable companies to conduct SCDD methodically. Defining human rights requirements into practical supplier’s evaluation system is a challenging task. Possible criteria and their indicators are discussed. The structure and processes to implement SRM framework for SCDD purposes are also described.:1. INTRODUCTION AND PROBLEM DESCRIPTION 2. INTENSIFICATION OF PURCHASING FUNCTION AND SUPPLIER RELATIONSHIP MANAGEMENT FOR IMPROVED COOPERATION WITH SUPPLIERS 2.1. Procurement and Purchasing Function in Integrative Supply Chain Management 2.2. Supplier Relationship Management and Purchasing Function 2.2.1. Supplier Relationship Management Framework 2.2.2. Strategy Development 2.2.3. Supplier Observation 2.2.4. Supplier Selection 2.2.5. Classification of Suppliers and Performance Assessment 2.2.6. Cooperation and Collaborating with Suppliers 2.2.7. Development of Suppliers 2.2.8. Disturbance and Dissolution Management 3. RESPECT FOR HUMAN RIGHTS AND IMPLEMENTATION OF SUPPLY CHAIN DUE DILIGENCE THROUGH IMPACT ASSESSMENT AND REPORTING 3.1. Relation between Business and Human Rights 3.2. Human Rights Due Diligence for Companies 3.2.1. Basic Concept of Human Rights Due Diligence 3.2.2. Relating Human Rights Due Diligence to Common Commercial Due Diligence 3.2.3. Business Case for Human Rights Due Diligence from Legal and Other Perspectives 3.3. Human Rights Due Diligence with Focus on Impact Assessment 3.3.1. Approaches and Guidelines to Conduct Human Rights Impact Assessment 3.3.2. Relevance of Human Rights Impact Assessment (HRIA) Approaches to Practical Implementation within Procurement Activities 3.4. Human Rights Reporting 3.5. Supply Chain Due Diligence Activities as Instrument to Conduct Human Rights Due Diligence 4. EVALUATION AND CLASSIFICATION OF SUPPLIERS’ PROSPECTIVE HUMAN RIGHTS PERFORMANCE AND HUMAN RIGHTS VIOLATION RISKS: DETERMINING CRITERIA AND THEIR INDICATORS 4.1. Performance Evaluation and Indicators Development 4.2. Rationalization in Grouping Human Rights Performance Criteria into Three groups of Criteria and Weighing/Scaling/Calculation System 4.3. Sourcing and Regulation 4.3.1. General Standards and Regulations 4.3.2. Specific Product Standards and Requirements 4.3.3. Supplier’s Code of Conduct and Industry Initiatives 4.4. Political and Social Circumstances 4.4.1. Political Condition in Country of Supplier 4.4.2. Risks of Corruption 4.4.3. Social Circumstance and Civil Society 4.5. Suppliers’ Internal Condition 4.5.1. Supplier’s Human Rights Policy 4.5.2. Supplier’s Human Rights Record and Reputation 4.5.3. Supplier’s Corporate Governance and Political Connections 4.6. General Remarks on Groups of Performance Criteria and Framework for Suppliers’ Classification 5. RESULTS INTERPRETATION OF SUPPLIERS’ CLASSIFICATION FOLLOWING EVALUATION OF SUPPLIERS’ PROSPECTIVE HUMAN RIGHTS PERFORMANCE AND HUMAN RIGHTS VIOLATION RISK 5.1. 5.1.1. Understanding and Using the Assessment Framework 5.1.2. Determining Indicators’ Scaling Complexity, Weighing System and Cut-off Points 5.1.3. Interaction Model of the Framework in Determining Overall Performance and Classification of Suppliers 5.2. Suppliers with Low-Level of Prospective Human Rights Performance 5.3. Suppliers with Medium-Level of Prospective Human Rights Performance 5.4. Suppliers with High-Level of Prospective Human Rights Performance 6. INTRODUCING SUPPLIER RELATIONSHIP MANAGEMENT FRAMEWORK FOR SUPPLY CHAIN DUE DILIGENCE 6.1. Building the Supplier Relationship Management Framework for Supply Chain Due Diligence Framework: Laying Out the Foundation 6.2. Supply Chain Due Diligence Using an Approach of Supplier Relationship Management: How to Implement the Framework 6.2.1. Purchasing Strategy Development 6.2.2. Observation of Potential Suppliers 6.2.3. Suppliers Selection 6.2.4. Performance Assessment and Classification of Suppliers 6.2.5. Disturbance and Dissolution Management 6.2.6. Cooperation and Collaboration with Suppliers 6.2.7. Development of Suppliers 7. CONCLUSION REFERENCES

The text discusses the Framework for the Implementation of the Corporate Sustainability Due Diligence Directive (CSDD) proposed by the European Union. The directive, aligned with UN and OECD guidelines, imposes obligations on companies to ensure respect for human rights and the environment. The due diligence obligation involves identifying and addressing the negative impacts of business activities, establishing internal complaint mechanisms, and publicly communicating efforts. The directive emphasizes integrating these activities into corporate policies and strategic decisions throughout the value chain. Companies must assess and address negative impacts in their supply chains, with measures tailored to the severity, likelihood, size, resources, and capabilities of the undertaking. The text highlights the complexity of sustainability as a long-term, multifaceted process, calling for collective responsibility from various stakeholders to navigate challenges in ecological and digital transitions, social inclusion, and energy and food security.