Through our risk assessment processes, we have identified several areas where modern slavery risks may exist in our operations and supply chains. These risks vary in terms of their likelihood, potential impact, and our ability to detect and address them effectively [18].
Manufacturing and Production Risks represent the most significant modern slavery risks in our supply chain, particularly in the manufacturing of solar panels, inverters, and other electrical components. The solar panel manufacturing industry has been associated with forced labor risks, particularly in certain geographic regions where labor standards may be inadequate and monitoring systems may be limited [19].
Solar panel manufacturing involves multiple stages including silicon purification, wafer production, cell manufacturing, and module assembly, each of which may involve different suppliers and subcontractors. The complexity of these manufacturing processes and the pressure to reduce costs can create conditions where modern slavery risks may emerge, particularly in lower-tier suppliers where visibility and oversight may be limited [20].
The extraction and processing of raw materials used in solar panels, including silicon, silver, aluminum, and rare earth elements, may involve modern slavery risks in mining operations, particularly in regions with weak governance structures and limited labor protections. These risks may be several tiers removed from our direct supplier relationships, making them challenging to identify and address [21].
Installation and Construction Risks may exist in our installation operations, particularly where we engage subcontractors or temporary workers for installation activities. The construction industry has historically been associated with modern slavery risks including exploitation of migrant workers, debt bondage, and unsafe working conditions [22].
Installation work often involves physical demands, working at heights, and exposure to electrical hazards, which may create conditions where vulnerable workers could be exploited. We recognize the importance of ensuring that all workers involved in our installation activities are properly trained, fairly compensated, and working in safe conditions [23].
Geographic Risk Factors influence the likelihood of modern slavery risks in our supply chain, with higher risks typically associated with countries that have weak governance structures, limited labor protections, high levels of poverty and inequality, and inadequate enforcement of labor laws. Our supply chain includes suppliers from various geographic regions with different risk profiles [24].
Regions with higher modern slavery risks may include areas with significant manufacturing activity but limited labor protections, countries experiencing conflict or political instability, and locations with large populations of migrant workers who may be vulnerable to exploitation [25].
Industry and Sector Risks are relevant to our business given that the renewable energy sector, while generally committed to sustainability principles, may still face modern slavery risks in manufacturing, construction, and raw material extraction activities. The rapid growth of the solar industry and pressure to reduce costs may create conditions where modern slavery risks could emerge [26].
Vulnerable Worker Populations may be at higher risk of modern slavery, including migrant workers, temporary workers, workers in informal employment arrangements, and workers with limited education or language skills. We recognize the importance of ensuring that our employment practices and those of our suppliers provide appropriate protections for all workers, particularly those who may be more vulnerable to exploitation [27].
Business Model and Procurement Risks may arise from certain business practices including excessive cost pressure on suppliers, short-term contracts that may incentivize cost-cutting, complex subcontracting arrangements that reduce visibility, and inadequate due diligence processes that fail to identify modern slavery risks [28].