Photo by Paul-Alain Hunt on Unsplash

Rights CoLab is piloting an effort to develop community-driven human rights and environmental due diligence in the Indonesian nickel industry, which is growing rapidly to meet the demand for critical minerals for the energy transition. At the same time, investors in critical minerals are beginning to assert their leverage to reduce the adverse impacts of the industry, including deforestation, biodiversity loss, insufficient community consultation, labor issues, and indigenous rights violations. Downstream buyers of nickel, particularly Electronic Vehicle companies, are also under pressure to act due to evolving laws and policies requiring traceability and due diligence action plans in their supply chains.

The project’s theory of change is to leverage financial institutions and downstream nickel buyers’ pressure on companies to minimize adverse environmental and human rights effects of the nickel sector in Indonesia. In order for investors and downstream buyers to exercise their leverage, they need comprehensive and timely information from the communities and Indigenous Peoples directly impacted by the industry. Rights CoLab will be creating and maintaining a regularly updated database of information held by communities, workers and Indigenous Peoples about the quality and scope of affected stakeholder engagement activities by companies in the Indonesian nickel industry. The database, based on a survey instrument adapted from Rights CoLab’s Stakeholder Engagement Guide (will insert link), will be comprised of regularly updated, investor-decision-useful information about the precise details of affected stakeholder engagement by companies involved in the Indonesian nickel industry. The pilot aims to generate sustained investor and brand demand for this information, with the intention of evolving the database into a subscription-based social enterprise that funds ongoing community monitoring and NGO support to advance responsible nickel mining and refining in Indonesia.

As part of a multistakeholder approach, Rights CoLab is engaging with the following Indonesian civil society organizations: 

AEER (Action for Ecology and People’s Emancipation)

ELSAM (Institute for Policy Research and Advocacy)

Institut Mosintuwu

Perempuan Mahardhika

Satya Bumi

WALHI Sulteng (The Indonesian Forum for the Environment – Sulawesi Tengah)