Toward a More Responsible Critical Minerals Supply Chain Supporting Indonesia’s Energy Transition

The report assesses the ESG practices of Chinese companies in the critical minerals sector, noting that while there has been progress in risk management and due diligence, significant gaps persist when compared to international benchmarks. Using Indonesia's nickel industry as a case study, it argues that aligning Chinese standards with global frameworks is essential for supply chain credibility and market access. The document recommends that the Chinese government accelerate the alignment of mining ESG standards with global benchmarks, introduce financial incentives for verifiable ESG performance, and establish bilateral technical cooperation and research centres in resource-rich countries.

• Chinese companies operating in the critical minerals sector have improved their ESG practices, particularly regarding due diligence and supply chain risk management, yet they still fall short of international best practices.
• The report proposes several policy measures for the Chinese government to improve sustainability, including the creation of financial incentives like preferential credit or green finance for verifiable ESG performance and the development of bilateral technical cooperation mechanisms with resource-rich nations.

APA

International Institute for Sustainable Development (2026). Toward a More Responsible Critical Minerals Supply Chain Supporting Indonesia’s Energy Transition. https://www.iisd.org/publications/report/esg-standards-chinese-companies-critical-minerals

Chicago

International Institute for Sustainable Development. Toward a More Responsible Critical Minerals Supply Chain Supporting Indonesia’s Energy Transition. 2026. https://www.iisd.org/publications/report/esg-standards-chinese-companies-critical-minerals.

Wikipedia

{{cite report |author=International Institute for Sustainable Development |title=Toward a More Responsible Critical Minerals Supply Chain Supporting Indonesia’s Energy Transition |date=26 May 2026 |url=https://www.iisd.org/publications/report/esg-standards-chinese-companies-critical-minerals |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{internationalinstituteforsustainabledevelopment2026toward, author = {{International Institute for Sustainable Development}}, title = {{Toward a More Responsible Critical Minerals Supply Chain Supporting Indonesia’s Energy Transition}}, institution = {International Institute for Sustainable Development}, year = {2026}, month = may, url = {https://www.iisd.org/publications/report/esg-standards-chinese-companies-critical-minerals}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }