Arizona-based First Solar released findings from a third party audit of their Malaysia facility, highlighting unethical practices involving foreign migrant workers.
The report details the actions taken by First Solar to address the issues, emphasizing the company's commitment to transparency and responsible solar energy development.
“We have chosen to highlight the audit findings openly, not only because of our commitment to transparency and Responsible Solar, but to raise awareness of modern slavery risks that hide in plain sight and to illustrate the value of an independent third-party social audit conducted in a credible, comprehensive manner,” said First Solar CEO Mark Widmar.
Unethical Recruitment of Migrant Workers: The discovery of practices such as recruitment fee payments in workers' home countries, passport retention, and unlawful wage retention. Corrective actions have been taken, such as returning passports and unlawfully retained wages.
Zero Tolerance for Forced Labor: First Solar's response to the audit, with changes including updated site service agreements and the establishment of a reimbursement plan with a third party concerning recruitment fees, emphasizes the company's stance against forced labor.
Work Hour Regulation: The audit noted cases of workers exceeding 60 hours per week due to voluntary overtime. Measures have been implemented to ensure that weekly work hours do not exceed 60, and that workers receive at least one day off every seven days.
Commitment to Transparency and Responsibility: First Solar's decision to make the audit public emphasizes the company's dedication to ethical practices within the solar industry and the broader sustainable energy transition. The statement by CEO Mark Widmar reinforces this commitment.
Industry Impact: By sharing the audit findings, First Solar aims to raise awareness of the hidden risks of modern slavery and to underscore the importance of conducting comprehensive, independent third-party social audits within the energy sector.
The sustainability Report highlights First Solar's efforts to uphold ethical standards in labor practices and compliance, including joining the Responsible Business Alliance (RBA) and commissioning its in-depth Validated Assessment Program (VAP) audits at operational manufacturing facilities in the United States, Malaysia, and Vietnam.
"While the protocols developed by the solar industry trade associations may benefit certain manufacturers by allowing the bifurcation of supply chains and avoiding crucial aspects, such as credible onsite social audits and grievance mechanisms, working with the RBA gives First Solar access to a robust assessment methodology that can withstand the highest levels of scrutiny," said Mr Widmar.
"The fact is that symbolic pledges and self-defined and -governed ‘protocols’ and ‘initiatives’ lack real accountability. Furthermore, they have shown that they cannot withstand the scrutiny caused by legislation such as the Uyghur Forced Labor Prevention Act (UFLPA) and only serve to undermine our industry’s reputation and credibility."
First Solar’s advanced thin film PV modules eploy a Cadmium Telluride (CadTel) semiconductor, derived from byproducts of copper and zinc mining, which boasts a number of qualities over conventional c-Si, including no exposure to the slavery-tainted PV silicon supply chain.
The Wall Street Jouranl reports that First Solar expects to receive as much as $710 million this year—nearly 90% of forecast operating profit—from subsidies the U.S. government rolled out a year ago to encourage domestic renewables production. One analyst estimates the incentives could be worth more than $10 billion for the company over the next decade.
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