Frequently Asked Questions

The International Responsible Business Conduct Agreement for the Renewable Energy Sector is a multi-stakeholder partnership. It aims to generate more transparency in the renewable energy technologies supply chains. The implementation of the Agreement consist of individual and collective actions that address potential and actual adverse impacts on people, the natural environment and biodiversity. Any private or public sector organisation or civil society organisation active in the wind and/or solar energy industry and is willing to contribute to this goal can apply to join the Agreement.

Companies, irrespective of their size, organisational type or level of knowledge in the field of international responsible business conduct, are welcome to participate in the process.

A company can participate if:

• it is active in the production, processing, trading, installation or distribution of wind or solar energy;
• it submits a motivation explaining why it wants to participate and what it can contribute, in line with the Membership Criteria of the Agreement;
• there is no objection on the part of the other parties to the participation of the new company;
• it makes an annual financial contribution;
• it signs the following official documents:
  - Agreement
  - Confidentiality Protocol
  - Assignment Agreement

Companies without a link to the Dutch market are also welcome to join. A minimum contribution of €3,000 applies to them. Furthermore, the same financial contributions apply to them as to Dutch medium-sized and large companies.

• Implementing due diligence in line with the OECD Guidelines and the UNGPs;
• Collaboration with other participants in the agreement to improve human rights and environmental conditions in renewable energy value chains

That depends on the size, operations and individual choices of companies. Improving individual company due diligence practices is a continuous process and requires periodical review and evaluation by the companies. However, by gaining access to the tailor-made due diligence templates, tools and instruments offered by the agreement, companies save time and lower costs. Also, participating in the actual work of the agreement for individual companies is not time-consuming. Taking part in working groups and collective projects are entirely voluntary.

• Supporting and monitoring individual companies' efforts to identify, understand and address risks of violation of human rights and environmental standards in their value chains;
• Initiating projects to jointly address prevalent risks in the sector;
• Increasing the collective influence (leverage) of the agreement participants by broadening membership, and by encouraging relevant actors in the renewable energy supply chains to adopt and implement the OECD Guidelines and UNGPs;
• Encouraging embedment of international responsible business conduct criteria in tender and procurement processes regarding renewable energy technologies.

The International RBC Agreement for the Renewable Energy Sector is based on the OECD Guidelines for Multinational Enterprises and the UN Guiding Principles on Business and Human Rights. These are the most authoritative international standards in the area of human rights and environmental due diligence. They are also the basis for the European Union’s due diligence legislation which is currently in development. Participation in the Renewable Energy Agreement helps companies to comply with international standards and prepare them to comply with existing and future sustainability legislation.

The supply chain of wind and solar energy is complex and has risks to people, environment and biodiversity. These risks cannot be tackled by an individual company. Cooperation of different parties in the supply chain is essential in order to minimize these risks. From this perspective, a multi-stakeholder Agreement is a useful instrument for parties to join forces for driving positive impact in the wind and solar energy supply chains.

Agreements are not a substitute of the due diligence legislation, but in fact they are complementing instruments that can support companies in preparation for and implementation of this legislation. They can provide companies with different tools and guidance, show them how they can increase their compliance, encourage them to participate in collective positive impact projects on the ground, provide one-on-one support to them and serve as a community of practice. While legislation shows what companies are required to do,

Agreements can show how they can do it in practice. So, in this sense, joining an Agreement, when there is a legislation in place, is still helpful. This is reflected in the RBC policy of the Dutch government, where it seeks to promote RBC with a mix of different policy measures: requirements, conditions, incentives, facilitation and information. Sectoral cooperation through RBC Agreements is a good example of the facilitating measures.

The SER has facilitated the negotiations process for this Agreement. The coming five years, the SER will host the independent secretariat and facilitate parties by the implementation of the Agreement. Furthermore, it also contributes to the implementation budget financially.

The (actual and potential) risks and adverse impacts connected to the renewable energy sector include violations of workers’ and children’s rights as well the rights of local communities and indigenous peoples. They also concern damage to the natural environment and biodiversity loss. For instance, solar and wind energy projects can result in deforestation, loss of natural habitat and marine life, create barriers for the movement of birds and animals and potentially cause significant impacts to ecosystems.

By participating in this multi-stakeholder Agreement, parties can realise positive impacts in the supply chains that they would be unable to achieve on their own. By working together, they can increase their leverage towards specific actors in the supply chain to address specific complex problems. By having direct contact with participating companies, the other parties gain a better understanding of business dilemmas and have channels to address issues collaboratively. Collaboration helps shift the focus away from incidental issues and how to manage them towards structural management and solutions for complex problems in global supply chains. Collaboration can strengthen the efforts of individual organisations to promote the international RBC agenda at the international and European levels.

Circularity of renewable energy technologies is also within the scope of this Agreement. In this sense, parties will work together to improve recycling of wind turbines and solar panels and relevant renewable energy technologies.

The Agreement establishes a high standard of assessment and monitoring of due diligence efforts of the signatory companies. During the implementation period, an assessment framework will be developed and agreed by all parties of the Agreement. Companies will be assessed against this assessment framework in an objective manner. Moreover, they will be supported to comply with the due diligence goals of the Agreement. The Agreement will also establish a Renewable Energy Complaints and Disputes Committee, where stakeholders can raise an issue concerning an injury, loss or (environmental) damage of material significance suffered due to a violation of the RBC Agreement.