The methodology for assessing the criticality of metal supplies was developed by EBP and EMPA. Based on analyses of pilot companies, existing evaluation approaches used in science and in practice were adapted to the specific situation applicable to companies in the MEM industries.
The assessment of criticality is based on four dimensions, which are characterized over a total of 10 criteria. The criteria are operationalized and measured using indicators. Criticality is assessed using 5 risk categories:
Risk of limited quantities of the metal being available or of their restricted availability due to their price
The assessment of the aspects and the corresponding indicators is based on data on the individual metals collected by the US Geological Survey (USGS).
Natural frequency Geological frequency of the metal
Concentration in the earth's crust Average concentration of the metal in the earth's crust
Dependence on certain countries Dependence on the supply of the metal from producer countries
Mining concentration Distribution of the annual global production between individual producer countries
Policy Potential Index The extent to which the general political conditions in mining countries are attractive to investment in metal production
Co-production Metal extracted as the main product, co-product or as a by-product of the extraction of other metals
Main product vs. co-product/by-product Supply of the metal dependent on the supply of other metals
Economic importance of co-product The economic importance of the co-produced metal compared to other metals contained in the ore
Demand The trend of global demand for the metal
The trend in global demand The expected change in demand for the metal due to increased production of existing applications and/or new applications
Price volatility Volatility of the global market price for the metal
Relative price fluctuations The range of relative fluctuations in the price of the metal over the past 5 years
The company's susceptibility in the event of a limited supply of the metal
The aspects and the corresponding indicators will be assessed from the responses given by the companies to each of the questions in the short questionnaire.
Strategic importance The importance of the availability of the metal with regard to the corporate strategy
Adverse effect on turnover The adverse effect, expressed as a percentage of turnover, due to a restricted supply of the metal
The ability to pass on additional costs The possibility of passing on to customers the increased cost of procuring the metal
The importance to the business The importance of the metal in relation to the corporate strategy
Substitutability The possibility of replacing the critical metal or the semi-finished product which contains this metal by an alternative raw material or semi-finished product.
Availability of a substitute The existence of an alternative raw material or semi-finished product to replace the critical metal or the semi-finished product which contains this metal
The substitute's functionality The suitability of the alternative metal or semi-finished product for manufacturing the product
The substitute's procurement costs The cost of procuring the alternative metal or semi-finished product compared with the original
Capacity for innovation The company's adaptability so as to reduce dependence on the metal
Importance of making savings in the use of materials The importance of taking steps to reduce dependence on the critical metal by making savings in the use of materials
The potential for making savings in the use of materials The potential for the company to make savings in the requirement for critical metals or for semi-finished products containing critical metals
Adverse effect on the environment due to the extraction of critical metals
Assessing the aspects and the corresponding indicators is oriented towards the results of the ecological assessment of the extraction and refining of the relevant metals. The ecological assessments are based on the ecoinvent database (V2.2) and the ReCiPe 2008 evaluation method.
Environmental impact The overall environmental impact of extracting critical metals
Ecosystems The adverse effect on ecosystems due to the extraction of the metal
Resource consumption The risk of resources of metals becoming scarce
Human health The adverse effect on health due to the extraction of the metal
The adverse societal effects of extracting the metal
Assessing the aspects and the corresponding indicators is based on the Corruption Perception Index (CPI) of Transparency International (corruption) and on information provided by the OECD (criterion: conflict mineral).
The potential for conflict The potential for societal conflict due to extracting the metal
Conflict mineral Extracting or not extracting the metal in conflict regions
Corruption Perceived corruption in countries where the metal is extracted (corruption perception index)