Renewable energy and human rights benchmark: Key findings from the wind and solar sectors
The 2023 benchmark report assesses the world’s most influential companies in the wind and solar sectors. It aims to encourage greater respect for human rights through recommendations on transparency, anti-corruption, and worker protections. The report reveals progress and areas of concern and offers guidance for companies, investors, and policy-makers.
Please login or join for free to read more.
OVERVIEW
This report assesses the world’s most influential companies in the wind and solar sectors. While companies have made modest progress since the previous benchmark in 2021, there are still areas of concern. Most companies have started to integrate human rights due diligence processes, but only a few describe how they involve affected stakeholders in decisions about actions taken on their salient human rights concerns. Additionally, only a few project developers and wind turbine manufacturers have downstream due diligence processes with environmental impact assessments and management plans from project developers. Since the roll-out of wind and solar projects accelerates, companies will be expected to demonstrate under what circumstances they undertake cumulative impact assessments.
There are clear steps that companies can take to prevent and mitigate human rights abuses, including through enhanced supply chain transparency and human rights due diligence as set out by the UN Guiding Principles, thereby consistently following regulatory procedures, and stakeholders need to be involved in decisions regarding human rights issues. For example, manufacturers may not have direct involvement in undertaking consultations with communities at the project siting stage, but they can establish related protocols towards their project developer clients.
Project developers, on the other hand, can make specific human rights and supply chain transparency requirements and to build capacity on prevention, mitigation and remedy of salient human rights issues with their suppliers, demonstrating provision of or cooperation in remediation depending on their involvement level in adverse impacts is a key responsibility under the UNGPs. Furthermore, the companies are advised to undertake rigorous human rights due diligence processes and actions across the sector should be consistent to deliver a fast and fair transition that preserves public trust and delivers shared benefits alongside returns to shareholders.
The benchmark’s methodology captures both baseline expectations of companies as well as aspirational practices. Companies should have a comprehensive strategy to address social impacts of the low-carbon transition and offer a clear and compelling narrative on the just energy transition, including the provision of adequate support to workers and communities affected by the transition, as well as the creation and provision of green and decent jobs for an inclusive and balanced workforce. Such companies that exemplify leading practices and have made significant improvements in the sector are noted in the corresponding analysis sections.