Renewables sector encouraged to take steps to ensure ethical supply chains

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Alisdair

Mcdonald

Principal Consultant

Bureau Veritas

Many components essential for renewable energy infrastructure are manufactured under conditions of modern slavery, meaning workers are operating in unsafe environments – which can undermine the integrity of these green energy initiatives. For example, the extraction of cobalt and nickel which are crucial components in lithium-ion batteries, or copper which is used in wind and solar PV assets have been linked to unethical working conditions. Our global company survey revealed 90% felt geographical concentration of supply chains for key components are a top challenge, which can often make it difficult for companies to carry out the relevant assessments and keep on top of auditing if they are not local to the sites.

“Like many industry members, we too were hoping for a positive step with the approval of the EU Directive on Corporate Sustainability Due Diligence. It would have required UK companies who conduct a set level of business in the EU to evaluate their supply chains and enforce relevant labour standards. Despite the directive not reaching the next stage of approval, we encourage companies to still take accountability and perform their own due diligence on supply chains, to support the industry to move forwards.