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Original Claim

Corruption and crime run through global energy supply chains

3 months ago

Context by Compass

The claim that corruption and crime run through global energy supply chains is supported by various reports and analyses. According to the United Nations Office on Drugs and Crime (UNODC), organized crime groups have become deeply embedded in gold supply chains, exploiting weak oversight and regulatory loopholes to introduce illegally sourced gold into the market. This involvement constitutes a serious global threat, as it leads to environmental degradation and exploitation of vulnerable populations UN News. Additionally, the mining sector, which is crucial for the global shift towards low-carbon technologies, is susceptible to corruption, particularly in the awarding of mining licenses. This corruption can lead to environmental harm and social conflicts, undermining the industry's social license to operate and increasing the risk of supply disruptions World Economic Forum. The Extractive Industries Transparency Initiative (EITI) and other organizations emphasize the need for strong governance and transparency to mitigate these risks and ensure a sustainable energy transition. These findings highlight the pervasive nature of corruption and crime in global energy supply chains, necessitating urgent action from governments, businesses, and international organizations to address these challenges.