Uyghur Forced Labor in Solar Industry
The Uyghur Forced Labor Prevention Act (UFLPA) passed in the US in 2022, aimed at stopping imports from companies tied to forced labor, has had implications beyond the solar industry. While the act initially targeted solar panel sourcing from the Uyghur region in China, a recent report from Sheffield Hallam University shows slow progress in supply chain transparency. Many solar companies are splitting their supply chains, sending compliant products to the US while sending forced-labor-linked items elsewhere. This has led to decreased transparency as companies hide their involvement with the Uyghur region.
The solar industry's failure to take immediate action and lobby for weaker enforcement is disappointing for Uyghurs and human rights advocates. Other industries, like printers and car batteries, are following suit and facing import restrictions due to Uyghur-linked sourcing. For instance, printer manufacturer Ninestar and car battery producer Camel Group have been banned from importing to the US under the UFLPA. The solar industry has already suffered financial consequences due to its inaction, and it appears that other industries are not adequately reducing their risk of sourcing from the Uyghur region.
Legislation such as the Uyghur Genocide Accountability and Sanctions Act in Congress and proposed Human Right Due Diligence regulations in Europe are pushing companies to take forced-labor concerns seriously. As pressure mounts, companies may need to proactively address the reputational and financial risks associated with inaction. The hope is that these actions will encourage companies to ensure their supply chains are free from forced labor, benefiting both the Uyghur people and human rights efforts.