In 2023, Drive Sustainability, Drive+, and IndustriALL formed a strategic partnership to enhance due diligence processes for downstream companies, with a specific focus on workers’ rights and ethical labour practices in Indonesia’s nickel supply chain.
This initiative aligns with Drive Sustainability’s broader 2030 strategy, aimed at ensuring decent jobs, upholding labour standards, and fostering sustainable practices throughout the battery value chain.
The project took a methodological approach to incorporating workers’ voices and trade unions into the risk analysis conducted by Original Equipment Manufacturers (OEMs). Its main goal was to move beyond the standard “tick-the-box” due diligence approach, driving real, measurable improvements on the ground. The initiative was carried out in three phases:
1. Evaluation of Current Practices: Assessing the due diligence processes used by Drive Sustainability and its D+ members.
2. Study Trip to Indonesia: Engaging directly with workers, trade unions, government representatives, and companies across the midstream and upstream sectors.
3. Development of Key Recommendations: Formulating actionable recommendations for end-users of raw materials, ensuring ethical sourcing and labour standards.
Key Takeaways from the Initiative
1. Innovative Partnerships Driving Human Rights Due Diligence
The collaboration between Drive Sustainability and IndustriALL highlights the vital role of innovative partnerships in advancing human rights due diligence (HRDD). Given the complexity of automotive supply chains—spanning multiple raw materials, remote mining and processing locations, and language and cultural barriers—companies often struggle to engage meaningfully with impacted stakeholders. Global networks like IndustriALL are uniquely positioned to bridge these gaps, ensuring access to worker groups and trade unions that might otherwise be out of reach. However, to fully realize this potential, new strategies must be developed to scale these efforts, enabling deeper, more sustained engagement across diverse regions and supply chain tiers. This includes enhancing cross-sector collaboration, improving communication channels, and leveraging local expertise to ensure that HRDD efforts are truly inclusive and impactful.
2. A Shared Framework for Human Rights Due Diligence Across the Supply Chain
One of the main focuses of the project was to develop a unified HRDD framework applicable at all levels of the supply chain. This shared understanding is essential for ensuring that labour standards are consistently upheld, from OEMs to raw material suppliers. The initiative highlighted the need for capacity building and guidance for trade unions, empowering them to actively engage with companies within this framework.
3. Collaboration and On-Site Engagement with Upstream Suppliers
To achieve meaningful change, the project emphasized the importance of direct engagement with upstream suppliers. On-site visits and ESG-focused dialogues with these suppliers are key to understanding the realities on the ground. This hands-on approach ensures that due diligence becomes a proactive tool for positive impact rather than a mere compliance exercise.
4. 360-Degree Data Collection for Holistic Risk Assessment
Comprehensive data collection is vital for an accurate understanding of labour conditions across the supply chain. By triangulating information from various sources—workers, trade unions, government entities, and companies—the project was able to provide a fuller picture of the risks involved. This approach ensures no single perspective is overlooked, resulting in more robust and actionable risk assessments.
Stay informed on next steps
This project is in the framework of Drive Sustainability 2030 responsible sourcing strategy, aiming at promoting collective actions to prevent and mitigate risks by engaging in on-site projects for tangible improvements. In 2025, DS will continue working on Nickel in Indonesia as a priority activity. Stay tuned for more updates!
For more information:
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- Contact Luciana Rendace, Senior Project Manager
- Subscribe to the Drive Sustainability Newsletter