CIPE’s Systematic Approach to Regional Value Creation
Critical minerals are essential components of modern technologies, renewable energy systems, electric vehicles, and national security infrastructures. CIPE’s Anti-Corruption & Governance Center (ACGC) PROTECT project highlights the shifting nature of business integrity risks and opportunities to design robust, actionable solutions to enhance responsible minerals conduct across the value chain. Focusing on the midstream and downstream sectors, the PROTECT project will engage industry leaders, governments, and civil society to work collaboratively with upstream markets.
CIPE, with support from the U.S. Department of State’s global initiative to Galvanize the Private Sector as Partners in Combating Corruption (GPS), is launching a set of Regional Integrity Hubs (RIHs) to link global and regional issues, discuss challenges, and implement strategic solutions to support systematic integrity reforms. As the flagship activity, PROTECT aims to catalyze business integrity and implement innovative solutions across the critical minerals value chain. CIPE and its knowledge partners will bring together upstream, midstream, and downstream industries to identify risks and develop opportunities to collectively act to address corruption.
(photo: Perucopper mine)
Harnessing Collective Interest
Extraction, processing, and distribution heighten exposure to new and complex risks, often enabled by corruption. This jeopardizes good governance, environmental sustainability, and human rights while also compromising business integrity, distorting markets, and perpetuating social inequalities across the value chain. PROTECT harnesses the collective interest of businesses in critical minerals supply chains to identify and address business integrity risks and raise investment safeguards across the value chain.
Tackling Complex Dynamics
The critical minerals value chain—covering upstream, midstream, and downstream industries— has grown more interconnected. These dynamics present sophisticated corruption risks, but also offer opportunities for more impactful business integrity initiatives.
On the one hand, governments in mineral-rich countries could impose strong export restrictions, new layers of bureaucracy or approval processes and strengthen engagement with state-owned enterprises (SOEs). This may cause heightened bribery risks.
Yet, opportunities may also emerge as downstream companies vertically integrate across the critical minerals value chain and improvebusiness integrity. These changing risks and emerging opportunities are at the heart of PROTECT. It promotes holistic change by bringing together multiple stakeholders from across the value chain to identify emerging opportunities and implement a combination of solutions to combat corruption.
For more information about PROTECT or other programs, please contact CIPE’s Anti-Corruption & Governance Center via the email ACGC@cipe.org.
Published Date: July 08, 2024