Wijnand van Hooff and Derek Steeman, of Holland Solar: ‘Knowledge about sustainability is not something to compete over, but something to share with each other.'

What are the challenges for your sector where sustainability is concerned?

Wijnand van Hooff: "We face a dilemma. On the one hand, the Netherlands needs far more solar energy systems to meet its climate targets. On the other hand, there are risks and problems in the global production chains of these systems. Everyone knows the stories of Uyghur forced labour in China. For many companies, that is an important reason to join this Agreement. The whole sector is more or less dependent on China. Efforts are being made to set up European factories for the production of raw materials and semi-finished products for solar panels. Nonetheless, setting up your own manufacturing industry is a long and difficult process."

Derek Steeman: "Another challenge is to make sure that today's solutions do not become tomorrow's problems. That's why we need to combine CSR and sustainability with circularity."

Are there solutions to these challenges?

Van Hooff: "As an industry association, we are currently working with our members on a 'growth trajectory' that sets out where we want to go as a sector in the coming years and the steps we need to take to get there. We follow the OECD Guidelines for responsible business conduct. Our growth trajectory serves as important input for the Agreement. The ultimate goal is to be fully circular, PFAS-free and free of child labour and forced labour. Companies that want to contribute to the growth trajectory and its implementation should all join the Agreement. The Agreement not only develops tools, but also shares best practices and knowledge. The secretariat organises regular knowledge sessions, for example, on European due diligence legislation."

Is the upcoming RBC legislation a reason to join the Agreement?

Van Hooff: "The main European directive in this area, the Corporate Sustainability Due Diligence Directive (CSDDD), was recently formally adopted, albeit in a significantly weakened form unfortunately. You might think that this makes it less urgent for companies to join the Agreement, but I believe the opposite to be the case. Clear government policy can help, but even without strict legislation, our sector can do a lot. I think most companies in our sector see it that way too. They are inherently motivated to tackle the problems in the sector."

What role can the financial sector play in this?

Steeman: "Banks and investors are increasingly imposing sustainability requirements on project financing. However, these so-called 'non-price criteria' vary per bank or institution. Some banks compile 'blacklists' of companies they do not want to invest in for reasons to do with sustainability, except it is not clear when and why a company ends up on such a list. We want to make agreements about these criteria so that companies know where they stand and a level playing field is created. That is why we organised two knowledge sessions in February and March this year, inviting representatives from the financial sector, the Agreement parties, and our own members. The aim was to come up with a set of criteria for project financing together, in line with the growth trajectory we are currently working on. We have already compiled a list of possible criteria for project financing and are now working them out in detail further. For instance, the requirement for companies to have a Supplier Code of Conduct by 2025 and the requirement to have an action plan that addresses suppliers."

What are your priorities for the second year of the Agreement?

Steeman: "It is important that we make real progress when it comes to transparency. Companies need to investigate what their supply chains look like and make that data public so that companies facing the same problems in the same field or with the same supplier can act together. The more companies that participate, the more cooperation will take place in this area. That's why it is important to increase the number of participants in the Agreement. We currently have about 33 companies, but this number should increase significantly in the coming years.”

Van Hooff: "The challenge is to show companies that the Agreement adds value. Because it provides practical support as far as due diligence is concerned, but also because it is about the future of the sector. If you want to have real impact, you have to be an active participant. Otherwise, others will decide what your business will look like. When companies say that they have made great progress with their own due diligence, I say: then become a member to share that knowledge with others. Help the whole sector move forward. Let us work together to define the minimum sustainability requirements that we as a sector want to meet. Knowledge about sustainability is not something to compete over, but something to share with each other.”