Work

Challenges in Balancing Sustainability, Competitiveness and Geopolitics in Critical Mineral Supply Chains

Year: 2025

Type: article

Abstract: ABSTRACT The energy transition is driving demand for critical raw materials (CRMs), creating complex challenges for companies in CRM supply chains. This study examines how firms in Europe navigate the intersecting pressures of sustainability, competitiveness and geopolitical risk, based on interviews with industry representatives. We investigate what motivates sustainable supply chain management (SSCM) practices, the barriers companies encounter, and how evolving regulatory and geopolitical contexts shape their strategies. While companies increasingly see a business case for sustainability and report structured SSCM efforts, they face persistent constraints such as limited supplier leverage, price competition and import dependencies. Regulatory initiatives like the Corporate Sustainability Due Diligence Directive are driving change, but governance gaps and uncertainty hinder impact. Industry responses reveal that policy goals aiming to reconcile sustainability, competitiveness and geopolitical resilience are difficult to achieve in practice, highlighting the need for more coherent, cross‐regional frameworks to support secure and responsible CRM supply chains.

Source: Business Strategy and the Environment

DOI: 10.1002/bse.70213

Authors: Aaron Maltais, Nella Canales, Rasmus Kløcker Larsen

Institution: Stockholm Environment Institute

Language: English

Topic: Sustainable Supply Chain Management

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Responsible consumption and production, Peace, justice, and strong institutions

Open Access status: hybrid

Estimated APC paid: $4,480