Decent Work in our Supply Chain
Our commitment to respect human rights encompasses our activities and those of our suppliers across our operations.
Statkraft has continued working to identify and assess potential adverse impacts on human and labour rights in its supply chains. Developing and implementing initiatives to address these effects is a priority area for the company in 2022.
Partnerships and collaboration with suppliers
As part of this process, Statkraft has initiated discussions with strategic suppliers to promote decent working conditions based on the principle of leverage. This is in recognition of the responsibility held by Statkraft to extend respect for human rights and not linked to or contribute to harm. Although the company acknowledges that the effectiveness of this mechanism may vary, and that in general Statkraft has a stronger ability to influence conditions on its sites than it does on operations further down in the supply chain.
Consequently, Statkraft actively seeks to partner and work with suppliers that are committed to transparency and who allow sufficient insight into their supply chain so as to allow all pertinent risks to be identified and appropriately managed.
Upholding fundamental rights for employees and suppliers alike
Part of Statkraft’s integrated approach to human rights management means that it will seek to also address and mitigate risks that the company may be linked or indirectly contribute to, but that are not necessarily caused by Statkraft directly. This is part of Statkraft’s deep commitment to upholding the ‘right to an adequate standard of living’.
Statkraft continuously works to communicate human rights expectations and engage with suppliers to improve performance in this area. Some of the company’s current focus areas, representing issues where there is the greatest actual and potential risk of negative impact on people and communities, include:
- Providing a living wage. Statkraft guarantees a living wage for all employees and requires the same for site-based workers regardless of employer. The company aims to implement this policy in 2022 onwards, and is currently developing a step-by-step plan to make this commitment a reality for new projects , including determining ‘living wage’ for each of Statkraft’s 19 geographies. At the same time, ongoing assessments seek to uncover how the principle may best be implemented in existing construction projects, and how to promote the principle in the rest of the supply chain.
- Regulating working hours. Statkraft will comply with national working hour regulations and ILO recommended limits, and is committed to promoting adherence to such standards in the supply chain. Work is currently ongoing to map potential gaps between local and national working hour regulations compared with ILO recommended limits. Where gaps are identified, Statkraft will employ the ‘strictest standards apply’ principle.
- Preventing forced and child labour. Naturally, Statkraft’s employees, contractors, and suppliers have a fundamental right to not be subjected to slavery, servitude, or forced labour. This work is specifically relevant for current greenfield solar projects which are just starting the construction phase. Consequently, Statkraft has taken steps to ensure that future contracts related to solar power are awarded to suppliers that deliver materials from countries and regions where there is a limited risk of forced or compulsory labour. Further, Statkraft publishes an annual statement made pursuant to Section 54(1) of the Modern Slavery Act 2015 (the “Act”). This statement summarises the steps we have taken with the intention of preventing and combating modern slavery in our business or supply chain. For instance, the statement summarises how Statkraft ensures that its Supplier Code of Conduct reflects this commitment, provides employees with training and guidance pertaining to the implementation of the Code of Conduct, and participates in a joint audit program alongside utility industry peers. It also details how Statkraft works to combat country and supplier specific risk through a risk assessment process based on thorough questionnaires and international indices like the Transparency International Index and the Yale Environmental Performance Index. The Supplier Code of Conduct has been updated in June 2022, to reflect heightened standards and with a requirement for suppliers to undertake Human Rights Due Diligence in line with international frameworks like UN Guiding Principles of Business and Human Rights