Malaysia (Common Wealth) _ First Solar, the world’s largest solar panel manufacturer, disclosed yesterday that an investigation of its production procedures had identified unethical labor practices at its Malaysia factory, sending the company’s shares down roughly 5%.
This is the latest finding linking the rapidly rising solar energy business to worries about forced labor. Because its panels do not include polysilicon, a basic material primarily produced in China’s Xinjiang area, First Solar has largely avoided such scrutiny. A new US law assumes that all commodities from Xinjiang are manufactured using forced labor.
First Solar stated in a corporate sustainability report that four onsite service providers in Malaysia had subjected migrant workers to unethical recruitment practices such as the payment of recruitment fees in their home countries, passport detention, and unlawful wage retention. First Solar stated that company had taken steps to refund affected employees’ passports, pay, and recruitment expenses.
The Tempe, Arizona-based company pushed other solar manufacturers to do similar audits.
According to the research, the solar business must hold itself to a higher standard. Simply put, our industry’s efforts to power the energy transition and combat climate change should not function as credits to negate its social and human rights commitments.
First Solar also manufactures panels in the United States and Vietnam, and it plans to construct a factory in India. In afternoon trade, the company’s shares were down 4.9 percent to US$201.00.
First Solar, Inc. (Nasdaq: FSLR) today issued its 2023 Sustainability Report, setting a new industry standard for transparency by making public details of onsite third-party social audits completed across its global production footprint, an industry first. First Solar is also thought to be the first of the world’s largest solar producers to conduct third-party social audits across its global manufacturing network. First Solar’s integrated production method reduces the risks and traceability issues associated with traditional crystalline silicon solar outsourcing and several supply tiers.
First Solar, the only major solar producer to be a member of the Responsible Business Alliance (RBA), recently completed three onsite third-party RBA Validated Assessment Program (VAP) audits at its manufacturing facilities in the United States, Malaysia, and Vietnam. While the company’s operations in the United States and Vietnam received platinum status, the highest possible grade, the audits revealed that four service providers at its Malaysia site fell short of First Solar’s criteria.
The results and corrective steps taken by First Solar are detailed in the company’s 2023 Sustainability Report. The Malaysia facility’s VAP closing audit is scheduled for the fourth quarter of 2023. The goal of third-party social audits, such as the RBA VAP social audits, is not to stamp compliance but to improve it.
The goal of third-party social audits, such as the RBA VAP social audits, is to detect and fix existing and future concerns in order to enhance the lives of workers throughout the supply chain.
We chose to publicize the audit findings not only to demonstrate our commitment to transparency and Responsible Solar, but also to raise awareness of modern slavery risks that lurk in plain sight and to demonstrate the value of an independent third-party social audit conducted in a credible, comprehensive manner, said Mark Widmar, CEO of First Solar. We believe that the solar business will be responsible in anchoring the worldwide transition to a sustainable energy future. Simply put, our industry’s efforts to power the energy transition and combat climate change should not function as credits to negate its social and human rights commitments.
According to the report, First Solar’s new factory in Tamil Nadu, India, which is set to start commercial production in the second half of 2023, would be the world’s first net-zero water withdrawal solar manufacturing facility.
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