Responsible Sourcing
At Sunrock, we prioritize the integration of robust human rights and environmental standards throughout all of our sourcing practices. We perform thorough supplier assessments, install transparent supply chain processes and increase procurement from companies with strong ESG commitments.
Our responsible sourcing processes involve pre-selection research of new EPC partners, our most critical stakeholders in terms of impact materiality. Moreover, all EPC partners are required to sign our supplier code of conduct. Understanding and addressing potential risks to human rights and the environment within our value chain is crucial for maintaining transparency and accountability.
This (simplified) overview shows the major producing countries of the raw materials linked to PV-components or semi-products. The overview displays examples of human rights and environmental risks, linked to the solar supply chain. They do not necessarily reflect the exact countries and specific risks linked to our supply chain. Neither does the list denote the severity of the risks in these countries. We are in a continuous process of researching the specific impacts of our supply chain. Ultimately, this knowledge will define the actions necessary for improving supply chain conditions.
PV system supply chain
Aim high!
Our main responsible sourcing objectives of 2023 were:
Provide stakeholders with transparency about the identified suppliers of critical components and services in our value chain.
Kick off a baseline assessment of our EPC partners to understand their ESG maturity and agree on improvement plans for 2023-2024.
Assess the labour conditions of the migrant workers who install our solar parks.
Transparent supply chains
Where do the components of our solar parks come from? Are they responsibly sourced and produced under fair conditions? Sunrock is the first European solar company to have joined forces with the platform Open Supply Hub and to have offered transparency on our suppliers and their factories. The platform also contains available data on the indirect suppliers in the subsequent tiers of our PV value chain.
The aim
The goal is for workers and other stakeholders to reach out to Sunrock if they identify issues. Furthermore, we encourage competitors to participate in the platform by sharing their data. Improving supply chain transparency is not easy as it requires active cooperation from our direct and indirect business relations. However, it is an essential step towards adhering to human international human rights and environmental standards for a more sustainable future. Sunrock is determined to rise to this challenge as a company.
2023 progress
In January 2023, we started collecting data for Open Supply Hub. By the end of December, we had identified and shared the production location data of one hundred suppliers and sub-suppliers, some going as far as tier 4. Open Supply Hub’s transparency tool is user friendly, for us as a publisher as well as for those in search of facts. By sharing data on the platform, we take accountability for our supply chain and encourage our suppliers and peers to do likewise.
Better and beyond
We hope more and more of our peers join our mission. Being first mover in the industry has not always been easy, but we benefit from positive recognition from internal and external stakeholders. From proud employees to peers who regard us as an industry leader to our financial service providers, who are impressed with the progress. By asking our suppliers to share their sub-suppliers on Open Supply Hub and introducing them to the platform, we have opened the conversation that could eventually lead to unearthing thousands of suppliers connected to our operations. To drive continuous momentum in these efforts, sharing data on Open Supply Hub is now a standard procedure in our supplier onboarding.
Screenshot of the supply chain data provided by Sunrock on our website using the Open Supply Hub Platform
A word with the chairperson of the Supply Chain Transparency Working Group
More than meets the eye
“Being part of this ESG working group gave me a deeper understanding of the solar industry, revealing a more complex reality than that meets the eye. While we often focus on the positive aspects of solar energy, such as its environmental benefits, there are significant challenges hidden within its supply chain. Think of the wellbeing of the communities involved in producing panels. There are issues related to labour conditions, environmental impact, and social disparities that often go unnoticed.
I became aware that there are always two sides to a story and it's crucial to acknowledge and address the challenges within the industry. Addressing these requires a comprehensive approach that prioritizes the wellbeing of communities and ecosystems throughout the supply chain. This includes promoting transparency and accountability, adopting sustainable and responsible sourcing practices, supporting local economies, investing in community development initiatives, and collabourating with stakeholders to address social and environmental concerns.
I became a part of the working group because I believe in the pursuit of continuous improvement. It is the opportunity to make a meaningful contribution towards addressing social issues, improving our company's practices, and our individual development. It's a way to play a small, yet significant part in facilitating positive change, both within our organization and in the wider community.”
Marta Arán
Junior Project Developer, New Markets & Chairperson of the Supply Chains Transparency and Accountability Working Group
“In terms of transparency within the supply chain, the ideal scenario would be to ensure that every new project is developed, constructed, operated, and managed with a focus on meeting high ESG standards to create sustainable and socially responsible energy solutions. I would like to emphasize to my colleagues the importance of considering the broader implications of our work within the supply chain transparency field. While we may be focused on specific tasks or projects, it's crucial to remember that our actions can have far-reaching effects on both people and the planet. By prioritizing transparency, accountability, and ethical practices throughout our supply chain, we not only mitigate risks and improve efficiency but also contribute to positive social and environmental outcomes. Together, we can make a meaningful impact and set a positive example for the industry.” - Marta Arán
Teaming up with partners on ESG
Sunrock has always revolved around collaborating with a diverse range of partners. The success of our projects hinges on the quality of our partnerships. We work closely with our suppliers to deliver high-quality, smart solar energy solutions that meet our customers' needs, while minimizing social and environmental impacts. Our most significant suppliers, in terms of ESG impact, are our Engineering, Procurement, and Construction (EPC) and our Operations and Maintenance (O&M) partners.
In it for the long run
Sunrock has established long-term, transparent relationships with its EPC partners. These collaborations are based on turnkey project agreements. Our EPC partners are fully responsible for the installation of the project. This includes procuring all necessary goods. Our commitment to transparency and quality ensures that each project is well executed.
Our O&M partners are crucial for ensuring the smooth operation of installed solar panels. They are responsible for the ongoing maintenance, repair and replacement of PV components as needed. By maintaining high standards of operation and maintenance, our partners help us deliver reliable and efficient solar energy solutions.
Once we reach an agreement with real estate owners or tenants to install PV modules on their roofs, we manage all necessary permits, insurance, and administrative requirements. Throughout the project, we keep the building's users aligned and incorporate their input to ensure their needs are met. During construction, Sunrock remains fully involved in ensuring quality, health & safety, and supply chain responsibility. We work hand-in-hand with our partners to ensure project performance in all areas.
2023 supplier baseline assessment
In 2023, Sunrock kicked off ESG baseline assessments, meant to offer insight into the ESG maturity of our partners, and serve as a starting point for conversations on areas for improvement and engagement.
We provided our EPC partners* with questionnaires, based on the human rights and environmental due diligence requirements articulated in the UN Guiding Principles on Business and Human Rights and the OECD Guidelines for Multinational Enterprises.
The outcome showed that many partners are at an early stage with respect to understanding what ESG means for their operations and how they can go about implementing the international frameworks. Many companies have measures in place to facilitate compliance with the law. Sunrock’s vision is to move beyond compliance to reach a truly sustainable value chain. This is where our joint efforts will focus in the coming years.
The baseline assessments were followed by conversations with members of the senior leadership of the companies. These ESG dialogues encompassed the approach to ESG and concrete areas of improvement in 2023/2024. Agreements to this end pertained to commitments to develop their own employee/supplier codes of conducts, to provide supply chain data, to engage in ESG conversations with sub-suppliers and collaborate with Sunrock on conducting third party audits of labour conditions.
4 of of 5 EPC partner’s assessed have implemented at least one of the agreed improvement actions during the course of 2023. We encourage non-engaging suppliers to collaborate with us on ESG matters. Eventually, when all avenues have been exhausted, we may decide to responsibly disengage with such suppliers, taking into account the guidelines of the OECD.
“Our collaboration with Sunrock feels natural, as we both share a commitment to having key topics related to ESG embedded in our core
values. Sunrock’s commitment to ESG is clearly visible. It is evident in their reports that they strive not only for compliance but truly aspire to excel in sustainability. Their guidance is beneficial for companies like ours who do not have an ESG manager yet. Sunrock has assisted us not only with further insights and expertise but also with concrete tools and templates to strengthen our own ESG approach. Sunrock takes a positive approach, not just pointing out potential shortcomings but encouraging us to collectively take steps forward. The collaboration with Sunrock is an inspiring example of how companies can collectively aim for better and more responsible chains. It is a journey of small steps that, when taken together, can have a significant impact on the sustainability of our supply chains and our joint responsibility for a better future.”
Nicole Rouwet – Chief Operations Officer iwell
*EPC partners representing 87% of our 2023 CAPEX investments in PV projects
were assessed on their ESG maturity and performance in 2023.
Beyond tier 1 suppliers
In our commitment to sustainable practices, we proactively expand our efforts to engage with manufacturers beyond our direct suppliers. By understanding their commitment to ESG, we encourage our EPC partners to select brands with strong ESG profiles for our projects. Our dedicated ESG conversations reached manufacturers representing 48% of the current modules on our parks, providing valuable insights into their supply chains and ESG maturity. Additionally, we actively approached EU manufacturers of solar panels and polysilicon. These conversations offered us valuable insights into suppliers’ willingness to comply with ESG regulations and meet the sustainability standards of Sunrock.
A group of Sunrockers visiting the cell, modules and test facilities of Meyer Burger in September 2023
Labor conditions of (migrant) workers
How can we make sure everyone involved with the installation of our parks is well treated, sufficiently paid and properly protected? Our EPC partners use subcontractors and agencies for the actual installation of PV modules. Together with two of our trusted EPC partners, we initiated third-party labour condition audits for subcontracted (migrant) workers at two sites in the Netherlands and Germany in 2023.
Regarding responsible sourcing of hardware components, we have put our efforts in assuring adequate labor conditions in the manufacturing supply chain of PV modules. Closer to home, it is just as important that labor conditions on our rooftops are up to standard. Time for an audit!
The audits were carried out by a recognized third party assurance provider and included a documentation review and a non-site audit. The housing of the subcontracted workers were visited. Conversations with the workers took place in their native languages and in a safe environment.
The outcome was that the workers were overall satisfied with the working conditions and felt unimpeded in their work. Furthermore, no signs of force or bonded labor were detected by the independent audits. The audit nevertheless identified minor, moderate, major and critical non-compliances related to wages, contract language, health & safety, working hours, grievance mechanism and housing.
Sunrock followed up these results in conversation with EPC partners on a corrective action plan. And in a workshop between the third party auditor and the Sunrock operations team we defined monitoring improvement actions. Additionally, the Sunrock supplier code of conduct will be amended in 2024 to reflect our commitment and requirements to working conditions at Sunrock sites.
Lastly, we shared our stories with competitors and governmental parties across the solar PV industry by sharing this story. In 2024, Sunrock will be collaborating with NGOs, trade unions and our peers to develop an industry wide approach to systematically improve the working conditions of (migrant) workers involved in the installation of renewable energy projects. The audits have been met with approval across the rooftop PV sector, and were the first of their kind in our segment.
Tim de Vries
Project Developer; Member of ESG working group on Supply Chain Transparency and project coordinator for the labor conditions audit
Beyond Compliance: introducing ESG+
All these 2023 projects seek to add ESG benefits to solar parks through collabouration among stakeholders. Actively seeking additional environmental, social, and governance benefits, we aim to go beyond compliance. Our goal is to develop solar parks that are not only sustainable in generating clean energy but also have ethically sound and socially responsible supply chains. We focus on:
Solar panels with cells traceable to the origin - at least up to polysilicon manufacturing
Mounting systems produced with > 50% renewable energy and recycled steel
Inverters with transparent supply chains
Use of at least 25% recycled material in cables
These projects involve active collaboration among all stakeholders. From owners to contractors and clients. Only with good partnership can we make this possible, and ensure the long term sustainability and transparency of our projects
2024 Goal
We are looking forward to our ‘24 Pilot Project, in which we put ESG+ to the test. The goal is to develop a 5MWp project, ESG+ in every way. To gather insights and establish a sustainable model for future projects with our partners and to (hopefully) prove feasibility and potential. Moreover, this concept aims to promote human rights, reduce carbon emissions, and support a circular economy.
Better together
Addressing complex ESG challenges requires more than the efforts of a single company. That is why sectoral-level collabouration is fundamental to our supply chain transparency and accountability program. Sunrock is a founding member of both the multi-stakeholder International Responsible Business Conduct Agreement for the Renewable Energy Sector (REA) and of the Solar Stewardship Initiative (SSI).
From NGOs to the Dutch government and even some competitors: through the REA we all join forces to drive meaningful change both within our company and further upstream. Through the SSI, Sunrock collaborate to develop an industry ESG traceability standard for manufacturers of solar panels among others. The SSI also seeks to audit these manufacturers against the standard.
A key aspect of our collaboration involves developing industry standards and using this to conduct independent audits at the manufacturing sites of our component manufacturers. These audits help ensure that our suppliers adhere to the highest standards of ethical and sustainable practices. By working together, we not only uphold our own commitment to integrity but also set a benchmark for the entire industry.
Sunrock is proud to be at the forefront of this collaborative movement, leading by example and showing that together, we can achieve meaningful results.
Signing ceremony International RBC Agreement for the Renewable Energy Sector in March 2023 © Dirk Hol
Sunrock scored 89 out of 100 in the 2023/2024 ESG third party assessment of how our policies and practices align with the UN Guiding Principles on Business and Human Rights and the OECD Due Diligence Guidance for Responsible Business Conduct. The assessment was conducted by the independent secretariat of the International RBC Agreement for the Renewable Energy Sector. The questions were developed collectively by multi-stakeholder parties.
In 2024, we will kick-off a multi-year positive impact project in the artisanal mining sector in Peru. Together with downstream peers and civil society partners in Peru we aim to improve the livelihoods of local communities and mitigate environmental impacts. By pooling our resources and expertise, we seek an enhanced coordination and interaction within the artisanal and small scale mining sector in the country. Stakeholder-driven initiatives will address common challenges and opportunities with respect to e.g. gender-related inequalities and health and safety issues.
Together with other industry representatives, Sunrock CEO Johannes Duijzer talked with Dutch Prime Minister Mark Rutte about opportunities for better adoption of ESG principles and norms by companies and the role of the Dutch government in facilitating this. (July 2023, at the Dutch Social and Economic Council).
Since 2023, Sunrock has been committed to the UN Global Compact corporate responsibility initiatives and its principles in the areas of human rights, labor, environment and anti-corruption.
On Transparent Reporting
Transparency in ESG reporting is crucial to enable better collaborations and inspire others, and that is why we are doing it together. The collaboration between Sunrock and IZEN on joint sustainability projects can leverage the strengths of both entities. Sharing best practices and innovative solutions will drive greater efficiency and impact in our ESG initiatives. By focusing on these areas, Sunrock and IZEN can not only enhance ESG performance but also drive long-term value for IZEN (VINCI Energies) and stakeholders.
On Migrant Workers
Cooperation on promoting the working conditions of migrant workers, particularly in the context of installers and other skilled labourers, is essential for ensuring fair treatment, safety, and transparency. As identified in the audit, we need to remain attentive at this. It requires a multifaceted approach involving international cooperation, robust legal frameworks, corporate responsibility, transparency, and support from all of us. By working together, stakeholders can create a fairer and more just environment for migrant workers globally.
Benny Vandevenne
COO Renewable Energies, IZEN energy systems
On Sustainable Supply Chain Management
Supply chain partners adhering to environmentally friendly practices are critical to making impact. Together we can establish stricter sustainability criteria for suppliers and regularly audit their compliance to ensure alignment with our environmental values.
On Carbon Footprint Reduction
IZEN is aiming to achieve greater reductions in carbon emissions by implementing energy-efficient technologies across all operations. Setting ambitious, science-based targets for reducing greenhouse gas emissions can lead the way in sustainability.
Sunrock and IZEN work closely together to promote the transition to renewable energy. IZEN focuses on the installation and maintenance of solar energy systems. This collabouration allows us to leverage our core competences and offer a complete solution to clients.
IZEN and Sunrock: Shared efforts in ESG
IZEN's vision on ESG
IZEN, as part of VINCI and VINCI-Energies, follows the group's strategy. The collabouration between Sunrock and IZEN has significantly supported IZEN’s approach to these (ESG) goals. Sunrock’s commitment to creating a clean energy future and extensive experience in deploying large-scale solar projects enable IZEN to meet its ESG targets effectively.
On Social Responsibility
Investing in employees' well-being and professional development is essential. Offering continuous training programs ensures the workforce remains skilled and motivated. Promoting a diverse and inclusive workplace is not only ethical but also beneficial for innovation and growth. IZEN implements policies that encourage diversity in hiring and foster an inclusive company culture.
On Projects with further reaching ESG benefits
IZEN commits to collabourate on solar projects with further reaching ESG benefits by providing f.e. commercial and technical support. IZEN calls upon its suppliers to be assessed through Ecovadis, and to use materials with recycled content cabling and mounting structures. Electrifying machinery and tools on construction sites also contribute to meeting carbon reduction goals.