Background

This report examines the forced labour of Uyghur and other Turkic and Muslim-majority peoples in China’s Xinjiang Uyghur Autonomous Region within global solar and electric vehicle (EV) supply chains. The rapid expansion of clean energy industries has deepened reliance on this region for quarrying, refining, and manufacturing materials essential to green technology. The research identifies that state-imposed forced labour and dependence on coal-based energy create significant human rights and environmental risks. It highlights the lack of credible due diligence in the region, noting that investors face restrictions in identifying and remediating abuses. The study introduces Investor Guidance to help investors identify, exclude, or engage with companies linked to human rights violations and suggests coordinated government and institutional action to reshape green technology supply chains.

Methodology

The research was conducted between March and September 2023 by Sheffield Hallam University, Anti-Slavery International, and the Investor Alliance for Human Rights. The first phase analysed public data, corporate disclosures, and shipping records to map solar supply chains post-2021 and following the US Uyghur Forced Labor Prevention Act. It found that major global solar manufacturers continue to source inputs at risk of forced labour exposure.

In the second phase, interviews were held with 17 investors across eight countries, including pension funds, private equity firms, and asset managers. A two-day workshop with nine investors, researchers, and civil society experts further explored findings and solutions. Data were anonymised, thematically analysed, and validated by an advisory committee of trade unions, civil society organisations, and Uyghur advocacy groups.

Key findings

The study found that most solar modules globally remain exposed to the Uyghur Region, with transparency in supply chains declining due to intentional concealment. Investors’ due diligence is hindered by opaque supply chains, restrictive Chinese regulations, and dependence on corporate self-disclosure.

Investment professionals demonstrated limited understanding of state-imposed forced labour dynamics, particularly the absence of effective remediation and investor leverage. The report stresses that, consistent with international human rights standards, divestment from entities operating in the region is the only responsible course of action.

Regulators and ESG data providers were found to inadequately identify forced labour risks. Investors indicated that data inconsistencies and limited regulatory incentives prevent meaningful action. The report notes that global sustainability frameworks, including the EU Taxonomy, often fail to address social impacts, while only the US Uyghur Forced Labor Prevention Act has driven tangible investor responses.

A further barrier is China’s dominance in green technology production and the perceived lack of viable alternatives. This has created apathy among investors and businesses, reinforcing dependence on the region despite the evident human rights harms.

Key recommendations

For the UK Government: The report recommends prioritising international collaboration through forums such as the UN and G7 to reduce reliance on the Uyghur Region. The government should establish a cross-departmental taskforce on Uyghur forced labour, incentivise alternative sourcing through research funding and development finance, and incorporate affected communities and trade unions in policy design.

It also advises the introduction of a UK Business, Human Rights and Environment Act, import controls on goods made with forced labour, and mandatory human rights due diligence for investors and businesses. Sustainable finance regulations should integrate social impact assessments, require disclosure of carbon emissions across all supply chain tiers, and strengthen oversight of ESG data providers.

For Investors: Investors are urged to conduct comprehensive desk-based due diligence, divest from companies operating in the Uyghur Region, and support alternative green energy supply chains. They should advocate for collective investor action, collaborate with civil society, and engage regulators to improve industry standards. The report emphasises that meaningful investor collaboration and advocacy are crucial to transforming green technology supply chains and ensuring ethical, sustainable investment practices.