The report published today by Finnwatch highlights responsibility challenges in solar panel supply chains and the need to improve product traceability. Strict regulations in the United States have already led to cleaner supply chains, and Finnwatch calls for similar measures in the EU to ensure fair competition for European companies and reduce Europe’s dependence on China.
The civil society organization Finnwatch has released a report (in Finnish) examining the production chains involved in solar panel manufacturing. As part of the report, Finnwatch interviewed 15 companies operating in Finland that import solar panels. This report follows a similar study published in 2021.
“The renewable energy sector acknowledges the challenges related to solar panel production. A critical review of supply chains is necessary to drive progress on this issue. I see that sustainability concerns are receiving increasing attention within the sector, and for example, large-scale project financiers now require responsible supply chain practices to be in place,” says Klaara Tapper, Advocacy Manager at Renewables Finland.
Sustainability requirements related to the origin of solar panels are incorporated into procurement agreements. Ethical business principles demand traceability throughout the supply chain. The industry relies on sustainability and ESG assessments as well as third-party responsibility audits.
Due to concerns about the social and environmental impacts of solar panel production, industry players view supply chain transparency as a key competitive advantage for manufacturers. Ensuring responsible supply chains and verifying the origin of solar panels are also crucial factors for securing financing.
Renewable energy plays a pivotal role in the transition towards a more sustainable future. Clean electricity enables a shift away from fossil fuels and is therefore essential for mitigating climate change. Sustainability must also be a core principle in the industry’s procurement practices.
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