Renewable energy supply chains are not immune to the global issue of modern slavery, and a new Clean Energy Council report focuses on Australia’s role in addressing it, writes Gavin Dennett.
As the world addresses the climate-change crisis and rapidly shifts to a decarbonised energy system, the accelerated rollout of renewable technology brings tremendous opportunities for business, investment and job creation.
Governments and investors are scaling up their stakes in clean energy infrastructure as the planet embraces a decarbonised future. However, as renewable manufacturing exponentially takes hold in every corner of the globe, evidence has emerged that links some of its supply chains to exploitation and modern slavery.
Different renewable energy technologies have varying points of exposure to modern slavery, from manufacturing of key components to the extraction of critical raw materials. While this is inherently a global problem, the Australian renewable energy industry is obliged to address its supply chains and contribute to ethical practices at all levels of the sector.
A new report by the Clean Energy Council, in collaboration with multinational law firm Norton Rose Fulbright – “Addressing Modern Slavery in the Clean Energy Sector” – highlights how Australian governments and other key stakeholders have an important role to contribute to global efforts to eliminate modern slavery from clean energy supply chains, including mineral extraction and manufacturing.
Strategies aimed at reducing or eliminating modern slavery should be developed through collaboration between government agencies, industry and civil society stakeholders, although these strategies should aim to minimise disruption to the clean energy transition that is underway.
“Australia is on a trajectory to produce the vast majority of our electricity from solar, wind, hydro and batteries by 2030, but it is important this shift happens in a way that is fair and equitable,” says Dr Nicholas Aberle, the Clean Energy Council’s policy director of energy generation and storage.
“As with many other modern products ubiquitous in everyday life, renewable energy technologies can have long supply chains that are linked at various points to modern slavery.
“The points of exposure most in need of attention are the manufacture of various key components and the extraction of raw minerals where renewables are expected to become a growing share of the market.
“One of the strategies that should be explored as part of a broader approach to this issue is the potential for establishing domestic supply chain capabilities.
“Australia has significant expertise in mineral extraction so as a nation we can be looking at developing our capacity to extract, process and manufacture materials and components for solar panels, batteries and wind turbines.”
According to Norton Rose Fulbright partner Abigail McGregor, part of the onus for ethical sourcing of products and materials is on businesses that need to implement strategies in response to modern slavery risks, including supply chain due diligence.
“It is often the later tiers of a supply chain that are difficult to map, but present the greatest risk,” she says. “The challenge is how to identify those risks in more than a theoretical way and work with suppliers to improve the conditions of the most vulnerable workers in supply chains.
“Unfortunately, there is a lack of transparency in some existing supply chains, often linked to geopolitical challenges, which can limit the effectiveness of supply chain due diligence by individual entities.
“Governments should lend their support to the development of globally recognised certification programs, as well as continuing to support United Nations requests for unhindered audit access to areas known to be high risk.”
NSW Anti-slavery Commissioner Dr James Cockayne endorses the Clean Energy Council and Norton Rose Fulbright report, stating Australia’s pressing need to play its part in confronting this international issue.
“Urgent action is needed to address the severe modern slavery risks in Australian renewable energy supply chains and investments,” he says.
“In NSW, government entities and local councils are legally required to take reasonable steps not to procure products of modern slavery. This may include some solar panels, lithium-ion batteries, wind turbines and renewable energy.
“This report is an important and welcome acknowledgment by industry of this problem and a first step towards addressing it.
“But we need to see industry, government, the financial sector and civil society working together to provide access to competitively costed, slavery-free renewable energy.
“If we don’t, modern slavery risks significantly complicating the just transition to a decarbonised economy.”