Does the undertaking disclose whether all value chain workers who are likely to be materially impacted by the undertaking, including those affected through its operations, products, services, and business relationships, are included in the scope of its disclosure under ESRS 2? Furthermore, in cases of material negative impacts, does the undertaking specify whether these impacts are (i) widespread or systemic in the contexts where it operates or maintains business relationships, such as child or forced labor in specific supply chains, or (ii) related to individual incidents or specific business relationships, such as industrial accidents or oil spills? Additionally, does the undertaking consider impacts on value chain workers that may arise from the transition to greener and climate-neutral operations, including those associated with innovation, restructuring, mine closures, increased mineral mining for sustainable economy transitions, and solar panel production?

Question

Accepted Answer

Our material negative impacts on our suppliers’ and sub-contractors’ workers primarily relate to work-related rights violations, including excessive working hours, as well as concerns over safety for all workers engaged in our supply chain. There have also been known issues related to debt bondage, and state-imposed forced labour may occur in the solar PV supply chain. We are aware of a material risk related to forced labour allegations of inadequate labour protections and oversight in our supply chain for critical components. These include minerals and metals, such as rare earth elements for wind turbine magnets, copper for export or array cables, lithium for batteries, and silica for solar panels. These materials are often sourced from countries and areas in Africa, Asia, and Latin America, where enforcement of labour protections is weaker, increasing the risk of forced and child labour.

Orsted

ESRS disclosure: S2.SBM-3_05

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