Severe human rights risks and impacts, including forced labor and other human rights issues, have been identified as the most salient risks in the green technology supply chains, including EV components, solar panels, and many others.
While the renewable energy sector has made significant progress in addressing environmental concerns, flagship reports and regulations have revealed that despite the sector making some progress, it is still falling short in addressing critical human rights risks and harms. The transition to renewable energy sources has the potential to positively impact communities and reduce carbon emissions. However, it is important to acknowledge that certain renewable energy projects have faced criticism for their potential negative impacts on workers and local communities, such as land rights issues or displacement.
In response, several initiatives and regulations have been issued, particularly in the US and Europe, urging businesses to identify and prevent the significant risk of causing, contributing to, or being linked to actual or potential adverse human rights impacts. In fact, to meet the increasing demand, a broad number of markets in Asia, Europe, and North America are quickly developing capacities to produce solar panels and battery components and reshuffling sourcing activities outside China.
Against this backdrop, a number of large companies and investors – mainly from the US, UK, and Europe – have made strong commitments to uphold anti-forced labor. However, they still struggle to implement their commitments, particularly in their sourcing and manufacturing chains. However, translating these high-level statements and supplier codes into practical and operational tools and their implementation is challenging in practice.
our approach
In 2023, The Green Transition Free from Forced Labor (GT3FL) Initiative was launched by Ksapa in response to industry demand for guidance in navigating current and upcoming international regulations and assisting in improving business practices around human rights and forced labor issues in global supply chains.
The Initiative brings together a group of founding members from both European & American companies, looking to find concrete solutions to forced labor and additional human rights risks in their efforts towards a green and just transition. The Initiative unites a multi-industry group from both the private sector and contributing international organizations and experts coming together in partnership under a common cause to collaborate on finding solutions on the topic of human rights and forced labor in supply chains globally, focusing on the Green Transition and with special concentration on the renewable energy sector, with an initial focus on solar panels and batteries.
RESULTS & NEXT STEPS
There is a growing focus on these issues amongst governments, civil society groups, investors, and various regional and international bodies and convenings – with growth in relevant initiatives, collaborations, and projects seeking to address this topic. These positive steps should be taken under the framework of enhanced human rights due diligence in line with the OECD 5-step framework and UN Guiding Principles for Business and Human Rights.
It is critical to ensure that buyers and investors alike can rely on robust processes to avoid human rights concerns across their big as much as emerging markets. Efforts are being made to address these concerns through increased transparency, stakeholder engagement, and the development of international guidelines. It is crucial for the renewable energy sector to continue working towards ensuring that human rights are respected and protected throughout the entire value chain.
The Initiative will be carried out annually, with this year’s member companies starting their first collaborative group session by putting a microscope on the issues and hotspots around the transition to green energy, solar panels, and battery minerals.
