Cobalt, Ethics And Business Investing: A Comprehensive Guide

When it comes to business ethics and investing, cobalt is a hot topic. This post will explore all aspects of cobalt – from what it is to why it is an ethical investment and the current state of the market. Lately, cobalt has been in the news due to its skyrocketing value and concerns around unethical mining practices. However, many businesses see cobalt as a valuable investment opportunity because of its growing demand in the technology sector.

What Is Ethical Investing?

Ethical investing is an investment strategy that considers both financial return and social/environmental good. It has become a popular way to invest in recent years as more and more people are interested in making a difference with their money.

Ethical investing is important because it allows investors to align their values with their investment choices. For example, an investor who is concerned about climate change may choose to invest in renewable energy companies. Or, an investor who wants to support human rights may avoid investments in companies that do business in countries with poor human rights records.

Understanding Cobalt

Cobalt is a metal used to produce lithium-ion batteries, which are used in everything from cell phones to electric cars. The demand for cobalt has exploded in recent years as the world has become more reliant on technology.

The current state of the cobalt market is booming. The price of cobalt has increased by more than 80% since 2016 and is expected to continue to rise. This is largely because there is a limited supply of cobalt, and its demand will only continue to grow.

As a result, investors have been flooding into the cobalt market, looking to make a quick profit. However, there are some major ethical concerns associated with cobalt mining.

Cobalt Mining and Ethics

A large majority of the world’s cobalt is mined in the Democratic Republic of Congo (DRC). The DRC is a country that has been plagued by conflict and human rights abuses for decades. Unfortunately, much of the cobalt mined in the DRC uses child labor. In fact, it is estimated that as many as 40,000 children work in cobalt mines in the DRC.

Consequently, cobalt has now been dubbed the new  “conflict mineral”. This is similar to a few years ago with “blood diamonds”, where diamonds were being mined in war-torn countries, and the profits were being used to fund conflict.

Businesses such as Apple, whose products heavily depend on cobalt, have come under pressure to do something about the unethical mining practices associated with cobalt. Apple announced that they would be  “tracing” their cobalt supply chain to ensure that child labor is not being used.

Other businesses such as  BMW and Volkswagen have also committed to sourcing “clean cobalt”. This means cobalt that has been mined ethically without the use of child labor.

The Future of Cobalt

As the demand for cobalt continues to grow, businesses and investors will need to grapple with ethical concerns. The ethical concerns may be enough to dissuade someone from investing in cobalt. However, others may see it as an opportunity to invest in companies working to address these issues.

The big question on businesses' minds is if there is even such a thing as "clean cobalt". Changing cobalt production is not an easy task when considering that most of the world's cobalt is mined in just one country, the DRC.

Nonetheless, the cobalt market is set to grow regardless thanks to demand driven by electric vehicle production and green energy initiatives. To find out more about price forecasting, check out The Assay cobalt market guide to gain a complete insight into the industry outlook.

Making An Informed Decision

When it comes to ethical business investing, cobalt is a complex issue. On the one hand, there is the potential for a high financial return. On the other hand, there are serious ethical concerns associated with cobalt mining.

Ultimately, it is up to each investor to decide whether or not they feel comfortable investing in cobalt. However, it is important to be fully informed about the risks and rewards before making any investment decisions.

By understanding the ins and outs of ethical business investing, you can make more informed investment choices that align with your values.