Solar Supply Chain Raises Human Rights Concerns as Transparency Declines
☀️ Solar Supply Chain Raises Human Rights Concerns as Transparency Declines.
A new report by experts in human rights and the solar industry has raised concerns about the solar supply chain's lack of transparency amid human rights issues. While global supply chains for solar panels have started reducing their reliance on China due to concerns over human rights violations in Xinjiang, the report indicates that most solar panels still have significant exposure to China and Xinjiang. The solar industry has faced criticism for its ties to Xinjiang, which is a major provider of polysilicon, a key material for solar panels. Many firms have promised to scrutinize their supply chains and set up factories in the US or Southeast Asia to supply Western markets, but the report highlights the industry's decreasing transparency about the origin of its products. As a result, it has become more challenging for buyers to determine whether solar panels are manufactured without forced labor.
On May 11, 2023, Canada passed the Fighting Against Forced Labor and Child Labor in Supply Chains Act, which requires Canadian businesses to demonstrate due diligence in minimizing the risks of forced and child labor in their supply chains.