Forced labor found at First Solar Malaysia factory
Forced labor found at First Solar Malaysia factory
First Solar Uncovers Unethical Labor Practices at Malaysia Factory
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Aug 15 (ANBLE) – Top U.S. solar panel maker First Solar (FSLR.O) on Tuesday said an audit of its manufacturing operations had uncovered unethical labor practices at its Malaysia factory, sending the company’s shares down about 5%.
The solar energy industry, known for its potential to combat climate change, has recently come under scrutiny for unethical labor practices. First Solar, a leading solar panel manufacturer, is the latest to face these concerns. However, unlike other companies, First Solar has largely avoided scrutiny due to the fact that its panels do not contain polysilicon, a raw material primarily produced in China’s Xinjiang region. A new U.S. law assumes that all goods from Xinjiang are made with forced labor.
In its corporate sustainability report, First Solar revealed that four service providers at its Malaysia factory subjected migrant workers to unethical recruitment practices, including paying recruitment fees in their home countries, retaining passports, and unlawfully withholding wages. These practices not only exploit vulnerable workers but also violate human rights.
First Solar has taken immediate action to rectify these issues and ensure fair treatment of its workers. The company has returned passports, wages, and recruitment fees to the affected workers. Furthermore, First Solar is calling on other solar manufacturers to undertake similar audits of their own operations.
“The solar industry must hold itself to a higher standard,” the report stated. “Quite simply, our industry’s work to power the energy transition and enable the fight against climate change does not serve as credits to offset its social and human rights obligations.”
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Despite this setback, First Solar remains committed to its mission of sustainable energy production. The company also operates factories in the United States and Vietnam, and has plans to open a new factory in India. By expanding its manufacturing capabilities globally, First Solar aims to meet the increasing demand for renewable energy and contribute to the fight against climate change.
The revelation of unethical labor practices at First Solar’s Malaysia factory has had a negative impact on the company’s shares, which were down 4.9% in afternoon trade, reaching $201.00. However, the company’s swift action to address the issue demonstrates its commitment to responsible and ethical business practices. As the solar industry continues to grow and evolve, it is imperative that companies prioritize the well-being of their workers and uphold human rights standards.
In conclusion, while the solar energy industry faces challenges regarding forced labor, First Solar’s transparency about the unethical practices at its Malaysia factory sets a positive precedent. By holding itself accountable and pushing for industry-wide change, First Solar is taking steps towards a more sustainable and ethical future.
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