2025.2100.3

Investing in Resilient and Sustainable Global Supply Chains (IGS)

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Bundesministerium für wirtschaftliche Zusammenarbeit u. Entwicklung
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–
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Bundesministerium für wirtschaftliche Zusammenarbeit und Entwicklung (BMZ)
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Julia Mager

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Context:

Global supply chains secure the economic livelihoods of millions of people and are key drivers of prosperity and development. However, they also pose significant risks to human rights and the environment — particularly in the extractive sector. The global demand for critical and strategic raw materials — such as lithium, graphite, and bauxite — essential for the mobility, energy, and digital transitions, is growing rapidly. Resource-rich yet economically weaker countries can reap substantial benefits from strategic supply chain projects with German and European companies, including increased exports, employment, government revenues, and more stable market access. These opportunities often come with heightened risks concerning human rights violations, environmental impacts, labour conditions, and the unequal distribution of profits. Establishing stable, responsible and resilient supply chains therefore requires close cooperation between companies, investors, governments, trade unions and civil society. This is the point of departure for the project.

Objective:

Sustainability and resilience in selected global supply chains are strengthened.

Approach:

The project works with companies, industry associations and trade unions to build capacities for implementing international sustainability standards and regulatory requirements along global supply chains. At the same time, IGS cooperates closely with partner-country governments, investors, companies, trade unions and civil society to accompany strategic investments in critical raw material supply chains, with development measures to improve governance, local participation and value creation. This approach enables win–win outcomes: higher environmental and social standards, better working conditions and increased local value addition in partner countries, while at the same time contributing to the diversification and security of supply of critical raw materials for German and European industry. 
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CRS code
25040

Policy markers

Significant (secondary) policy objectives:

  • Biodiversity
  • Gender Equality
  • Climate Change: Mitigation

Responsible organisational unit
G120 Nachhaltige Wirtschentw, Digitalisierung

Previous project
2021.2208.3

Financial commitment for the actual implementation phase
16,000,000 €

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