Green transition mineral supply risks: Comparing artisanal and deep-sea cobalt mining in a time of climate crisis

Abstract

In the context of a climate crisis and accelerating green transition, companies are scrambling to secure supply over the coming decades, including through artisanal mining (ASM) and deep sea mining (DSM). These modes of extraction create distinct yet related risks, with for example some of the social risks of ASM justifying the environmental risks of DSM. Upstream companies follow different risk management strategies in relations to ASM and DSM. Risk shifting transfers risk-related responsibility via contracts with other entities within the mining sector. Risk fixing creates the bureaucratic and technocratic tools to prevent or resolve risk-related liabilities. Risk outsourcing occurs when non-industry members are asked to autonomously follow ‘clean minerals’ practices. In addition, downstream companies follow risk emotionalizing strategies through which they aim to shape customers’ perceptions and emotions towards their products and the associated risks. Finally, corporate sourcing needs for minerals tend to result in risk perpetuating, despite or even because of the risk management strategies identified here.