Special attention in our supply chain focuses on the procurement of solar panels. We have identified that the production of solar panels in China carries a significant risk of forced labour of Uyghurs and other Muslim minorities.
The majority of the world’s largest solar panel manufacturers and their material suppliers are Chinese. Most of the manufacturers of polysilicon, which is used as a material for solar panels, are also Chinese companies, and the majority of these have operations in Xinjiang, the Uyghur Autonomous Region. The risk of forced labour related to the production of solar panels particularly concerns polysilicon production and supply chains in Xinjiang.
At Skarta Energy, we continuously develop our sustainability work and work on a long-term basis to ensure that our entire supply chain is sustainable. We want to ensure that no forced labour has been used at any stage of our supply chain. Each solar panel supplier used in our projects goes through an ESG assessment process, where we review the operations of solar panel suppliers, third-party certificates and reports from ESG and supply chain audits conducted by reliable third-parties. The ESG assessment process consists of reviewing ESG documentation, third-party ESG and traceability audits, and supply chain mapping.
All solar panel suppliers we use are Tier 1 suppliers. We require all our solar panel suppliers to commit to our Supplier Code of Conduct, which among other things prohibits forced labour. In addition, we require that our solar panel suppliers have signed a statement prohibiting forced labour. All our solar panel suppliers must have valid ISO 9001, ISO 14001 and ISO 45001 certificates. In addition, we consider other third-party sustainability certifications, such as SA8000 and BSCI, to be an advantage. Used solar panel manufacturers are also required to be members of the Solar Stewardship Initiative or at least have a plan to apply for membership and a commitment to the UN Global Compact. In addition, Skarta Energy has contractually ensured that no forced labour has been used in the supply chain of solar panels procured for Skarta Energy’s projects.