Challenges in Balancing Sustainability, Competitiveness and Geopolitics in Critical Mineral Supply Chains

Aaron Maltais, Nella Canales and Rasmus Kløcker Larsen

Business Strategy and the Environment, 2026, vol. 35, issue 1, 790-802

Abstract: The energy transition is driving demand for critical raw materials (CRMs), creating complex challenges for companies in CRM supply chains. This study examines how firms in Europe navigate the intersecting pressures of sustainability, competitiveness and geopolitical risk, based on interviews with industry representatives. We investigate what motivates sustainable supply chain management (SSCM) practices, the barriers companies encounter, and how evolving regulatory and geopolitical contexts shape their strategies. While companies increasingly see a business case for sustainability and report structured SSCM efforts, they face persistent constraints such as limited supplier leverage, price competition and import dependencies. Regulatory initiatives like the Corporate Sustainability Due Diligence Directive are driving change, but governance gaps and uncertainty hinder impact. Industry responses reveal that policy goals aiming to reconcile sustainability, competitiveness and geopolitical resilience are difficult to achieve in practice, highlighting the need for more coherent, cross‐regional frameworks to support secure and responsible CRM supply chains.

Date: 2026
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