FCA announced that it has joined the Responsible Sourcing Blockchain Network (RSBN), an industry collaboration using blockchain technology to support sustainable, responsible sourcing and production practices from mine to market.
Built on the IBM Blockchain Platform and assured by RCS Global Group, the RSBN is on track to become commercially operational by spring 2020. Simultaneously, FCA will work with RSBN to launch a global audit and trace of cobalt in its supply chain.
Traceability and mapping of raw materials are essential to more efficiently and preemptively mitigate unethical practices that threaten the future for the communities where the raw materials are sourced.
“Our commitment to the responsible procurement of raw materials is vital to the integrity and sustainability of our supply chain, especially as our electrification strategy ramps up,” said Carl Smiley, Chief Purchasing and Supply Chain Officer, FCA. “Embarking on this journey together with technology and industry leaders will propel our ability to have visibility into artisanal and small-scale mines, allowing us to better manage the social and environmental impacts of our business.”
FCA intends to launch more than 30 electrified nameplates by 2022, and the consortium will help enable a responsible supply chain of cobalt, which is used in lithium-ion batteries that power electric vehicles.
RSBN is building an open, industry-wide blockchain platform to trace responsibly produced minerals from source through to end product, with RCS Global assessing each participating entity against responsible sourcing requirements set by the Organization for Economic Cooperation and Development (OECD) and industry bodies. RSBN participants include Ford Motor Company, Volkswagen Group, Volvo, LG Chem and Huayou Cobalt.
“We are hugely excited that Fiat Chrysler Automobiles, one of the world’s leading auto manufacturers, has joined the RSBN. With this move, FCA signals its intent to robustly address the issue of responsible sourcing in its supply chain and we look forward to working with them to achieve this,” said Dr. Nicholas Garrett, CEO, RCS Global Group. “The RSBN is expanding rapidly, connecting actors throughout the battery supply chain and beyond, all of whom have a focus on proving good practice in responsible sourcing and production.”
“We are excited to welcome FCA to the Responsible Sourcing Blockchain Network (RSBN) as this will help to expand the benefits of the network to many more participants across their global supply chain,” said Dirk Wollschlager, General Manager, IBM Global Automotive, Aerospace and Defense Industries. “RSBN has already made significant progress in improving ethical sourcing of minerals.”
Additionally, FCA recently contributed to the Responsible Business Alliance (RBA) Foundation Upstream Due Diligence Smelter Fund to help enable smelters and refiners to partially offset the costs of on-the-ground due diligence activities, in line with the Organisation for Economic Co-operation & Development (OECD) due diligence guidelines. The Foundation supports the charitable, scientific and educational purposes of the Responsible Minerals Initiative (RMI), of which FCA is a member.
FCA corporate citizenship efforts are aligned with the United Nations Sustainable Development Goals, which aim to address global challenges, including those related to poverty, inequality, climate, environmental degradation, prosperity, and peace and justice.
The Company also uses and teaches suppliers the OECD 5-Step Framework for Upstream and Downstream Supply Chains, which provides a common and foundational tool to help solidify responsible sourcing practices and decisions made throughout our supply chain. FCA requires that suppliers and their sub-suppliers adhere to all applicable global laws and regulations.