How to make the energy transition not just happen, but also in a sustainable way? By signing the International Responsible Business Conduct Agreement for the Renewable Energy Sector (IRBC REA), a total of now 53 international signatory companies, industry associations, governments, knowledge institutions and NGOs set out to work together. Their goal is to advance compliance with international standards for responsible business conduct. To this end, they have jointly developed the Assessment Framework for the Renewable Energy Sector. This framework was used to carry out a baseline assessment of the signatory companies for the first year of the agreement. The results are now published.
Purpose of the baseline measurement
The signatory companies in the renewable energy sector – wind and solar companies and their industry associations – have committed to conducting risk-based due diligence as prescribed by the OECD Due Diligence Guidance for Responsible Business Conduct .
OECD Due Diligence Guidelines for Responsible Business Conduct. To this end, they jointly developed the Renewable Energy Sector Due Diligence Assessment Framework. This framework was used to conduct a baseline assessment of the signatory companies for the first year of the agreement. The results of this assessment, which will be repeated annually, will show the due diligence maturity of the companies at the start of the agreement, the existing gaps and challenges. With this analysis, the parties can start developing a collective due diligence support programme. With each company now having gained insight into the gaps and their current strengths, they can both provide targeted knowledge and ask and learn from their peers.
The results were published here by the SER on 3 October.
About the baseline measurement
The independent secretariat of the agreement conducted a baseline assessment between March and July 2024. How do participating companies implement the six due diligence steps described in the OECD Guidelines? Where can parties support each other to improve their corporate social responsibility? Based on their score in the assessment, participating companies were classified into the following categories.
Wind sector results
The average baseline for companies in the wind sector was 69%. Of the companies in the wind sector assessed, 0 scored as "Beginner", 1 as "Improving", 6 as "Intermediate", 9 as "Advanced" and 6 as "Leader".
The assessment found that companies in the wind sector had a strong focus and well-developed policies and systems for issues such as occupational health and safety and for project implementation. The sector scored highest on due diligence step 5 (communicating how impacts will be addressed) and lowest on due diligence step 6 (providing for or assisting with remediation when necessary).
Differences between wind and sun
The average baseline for companies in the solar sector was 33%. The differences between the results of the wind and solar sectors can be explained by the different challenges that these two sectors face. There are significant differences in the supply chain architecture, size and resources of companies in the wind and solar sectors, making it difficult to compare the two sectors. The assessment therefore showed that parties will need to develop a different approach to companies in the wind and solar sectors with regard to providing due diligence support.
Best practices and steps towards 2025
Based on the baseline assessment, the Secretariat developed a monitoring gap analysis and a collection of best practices from the sector. It brings together 54 human rights and environmental due diligence practices from the wind and solar sectors that can serve as inspiration for companies.
Monitoring gap analysis provides the parties with insight and information to develop a collective due diligence support program. This program will consist of targeted knowledge sharing and peer learning sessions, preparing different tools and organizing activities.
The participating companies have developed and shared with the Secretariat action plans outlining concrete steps they will take to improve their due diligence practices. To ensure accountability and measure progress, a further round of assessments will take place in March-July 2025. In this way, being part of the covenant supports companies in the renewable energy sector to learn from each other and progress together towards a shared standard for responsible entrepreneurship.
More information
The Social and Economic Council (SER) facilitates the covenant and forms the independent secretariat. This agreement is intended to help wind and solar energy companies improve their due diligence practices in the field of human rights and the environment.
Read more about the aggregated and anonymized results of the baseline measurement on the RBC Agreement webpage and linkedin page dedicated to IMVO covenants. There you can also find more information about the International Responsible Business Conduct Agreement for the Renewable Energy Sector (IRBC REA)
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