#1INVESTOR ALLIANCE FOR HUMAN RIGHTS UNJUST TRANSITION: UYGHUR FORCED LABOR IN THE GLOBAL SOLAR SUPPY CHAIN Monday, September 27, 2021#2East Turkistan - Uyghur Region INVESTOR ALLIANCE FOR HUMAN RIGHTS C⭑ 2#3Investors Responsibility INVESTOR ALLIANCE FOR HUMAN RIGHTS Institutional Investors Solar Company Module Manufacturer Polysilicon Producer Quartz - Raw Materials Local Authorities 3#4Xe Human Rights Risks in Xinjiang Uyghur Autonomous Region PRACTICAL GUIDANCE FOR INVESTORS INVESTOR ALLIANCE FOR HUMAN RIGHTS AN INITIATIVE OF ICCR ■ Enhanced HRDD needed as XUAR is a high-risk region Guiding Question for Corporate Engagement ■ Collective Action with Civil Society Organizations, Trade Associations, Government & International Organizations 4 4#5DOSO "The only viable solution is to consider the entire region to be thoroughly tainted with different forms of coercive labor." Researcher Adrian Zenz 0050 LO 5#6Panelists INVESTOR ALLIANCE FOR HUMAN RIGHTS Nyrolä Elima Researcher at Helena Kennedy Centre for International Justice Laura Murphy Professor of Human Rights & Contemporary Slavery, Helena Kennedy Centre for International Justice, Sheffield Hallam University Reginald Smith Research Analyst for Eventide Asset Management Ashleigh Owens Deputy Director, Financial Institutions Lead & Senior Advisor at Shift Project 6#7Panelists INVESTOR ALLIANCE FOR HUMAN RIGHTS Nyrolä Elima Researcher at Helena Kennedy Centre for International Justice and co-author of "In Broad Daylight" Report 7#8Sheffield Hallam Helena Kennedy Centre for University International Justice Forced Labour Lab 8 The Forced Labour Lab at the Helena Kennedy Centre is an initiative to provide an evidence base for better understanding forced labour globally IN BROAD DAYLIGHT Uyghur Forced Labour and Global Solar Supply Chains The Forced Labour Lab is a project of the Helena Kennedy Centre for International Justice that conducts research on forced labour, modern slavery, and human trafficking. Our current research focuses on the systematic forced labour of minoritized citizens in the Xinjiang Uyghur Autonomous Region of China. Our LAURA T. MURPHY & NYROLA ELIMÄ Sheffield Helena Kennedy Hallam Centre for University International Justice#9BACKGROUND • There are approximately 12 million ethnic Uyghur and Kazakh citizens in Xinjiang Uyghur Autonomous Region (Uyghur Region) . · Approximately 1.8 million of them have been interned in camps spread across the region. Upwards of 2 million of them have been "transferred" for labor through a state-sponsored forced labour regime. • Forced labor can occur in several ways: • within the internment camps . as a condition of "release" • • in a "satellite factory" that is "on your doorstep" as a transfer to a factory or farm within the Uyghur Region as a transfer to a factory or farm outside the Uyghur Region Helena Kennedy Centre for Sheffield Hallam University International Justice 9#10A) ARE THEY ENGAGING LABOUR TRANSFERS? (劳动力转移,富余/剩余劳动力,军训, 国语培训) State-sponsored Labour Transfer Programmes Sheffield Helena Kennedy Hallam Centre for University International Justice 10#11干得好的要表扬、奖励,干得不好的要批评教育甚至处分。 Labor agencies must "have organizational discipline in place and implement militarized management to allow people with employment difficulties to get rid of selfishness and distractions, change their 就业一人一股贫一户 劳动伟大 致富光榮 团结一心 共光 long-cultivated lazy, idle, slow, and inconstant behaviours of personal freedom, to abide by corporate rules and regulations and work discipline, and to devote themselves to daily production. In daily life; they should have iron discipline..." 2020年4月14日 今日聚焦 Employ one person, Alleviate poverty for a household; Labour is glorious; Getting rich is glorious; Let's unite as one and run toward a well-off life together. "Good work should be praised and rewarded, and bad work should be criticized and educated or even punished." Sheffield Helena Kennedy Centre for Hallam University International Justice 11#12B) Are government officers or recruiters going house to house? Did they assign Uyghur or Kazakh person to a point value ? (工作队反复劝说,改变他们的意识形态) Sheffield Helena Kennedy Hallam Centre for University International Justice 12#13About doing a good job in serving the urban and rural surplus labor force in Qapqal County Transfer employment work implementation plan Quantitative Point System Points determine placement in three categories + Unwilling to participate in training? + Able to go elsewhere for employment but are not active in seeking employment? + Have outdated concepts or stubborn thinking? . • Controlled: sent to training General: assigned nearest local transfer Secure: issued "Urban and Rural Surplus Labor Transfer Employment Personnel Certificate" and transferred to the interior Sheffield Hallam Helena Kennedy Centre for University International Justice#14C) Are the company's facilities co- located with a camp? D) What is their engagement with the Xinjiang Production and Construction Corps (XPCC) Sheffield Hallam Helena Kennedy Centre for University International Justice 14#159/2016 Xinjiang Jinko construction site 2016 Xinjiang Jinko facilities 2019 3x 7/2019 2019 H Image 2021 Maxar Technologies Detention facilities construction sites Imagery Date: 9/12/2016 43°27'44.91" N 83°16'02.44" E Image 2021 CNES Arbus Detention facilities 15 Imagery Date: 7/6/2019 43°27'44.91" N 83°16'02.44" |#16Panelists INVESTOR ALLIANCE FOR HUMAN RIGHTS Laura Murphy Professor of Human Rights and Contemporary Slavery, Helena Kennedy Centre for International Justice, Sheffield Hallam University and co-author of "In Broad Daylight" Report 16#17IN BROAD DAYLIGHT Uyghur Forced Labour and Global Solar Supply Chains LAURA T. MURPHY & NYROLA ELIMÄ Sheffield Hallam Helena Kennedy Centre for University International Justice 17#18According to the ILO Forced Labour Convention of 1930, forced or compulsory labour is: "all work or service which is exacted from any person under the threat of a penalty and for which the person has not offered himself or herself voluntarily." Indicators include: • abuse of vulnerability • deception • restriction of movement • isolation physical or sexual violence retention of ID withholding of wages • debt bondage . abusive working conditions excessive overtime Sheffield Helena Kennedy Hallam Centre for University International Justice 18#19The Making of a Solar Panel 1. Raw Materials 2020 Polysilicon Market Share 2. Polysilicon 3. Ingots 4. Wafers 5. Cells 6. Modules 45% Uyghur Reglon 30% China (Interior) 25% International Sheffield Helena Kennedy Hallam Centre for University International Justice 19#20Raw Materials • Hoshine • Sokesi • ten others Polysilicon • Daqo • TBEA/Xinte • GCL-Poly • East Hope • 2 others Ingots to Modules • JinkoSolar • LONGI Trina • JA Solar • 6 others Sheffield Hallam Helena Kennedy Centre for University International Justice 20#21HOSHINE 专注硅基新材料 创造美好生活 Concentrate on the silicon-based materials to create wonderful fe wwwwwww Their labour recruitment process promises "transformation of surplus rural labor into industrial workers and urban dwellers, making them become fresh combat troops for industrialization, urbanization, and agricultural modernization." Sheffield Hallam Helena Kennedy Centre for University International Justice 21 24#22HOSHINE •I ·TH谐家园 Sheffield Hallam Helena Kennedy Centre for University International Justice 22 22#23rm רו Image 2021 Maxar Technologies Hoshine Silicon (Shanshan) Image 2021 Maxar Technologies Image 2021 CNES / Airbus Shanshan Stone Industrial Park Google Eart Imagery Date: 2/19/2021 42°55'34.61"N 90°09'14.71" E elev Oft eye alt 14.84 mi Google Earth eye alt 13210 ft Imagery Date: 2/1/2021 42°58'51.01" N 90°08'04.14" E elev Oft 23 23#2411/2019 3x 2021 ASPI-identified detention facilities Image ©2021 Maxar Technologies Image Hoshine Silicon (Shanshan) Image magels 321 Maxar Technol Hoshine Silicon (Shanshan) 01.54" E Google Eart Imagery Date:2/19/2021 42°55'34.61 N 90°09'14.71" E elev Oft eye alt 14.84 mi 24 24#2511/2019 Internal fenced areas O Double perimeter: fence + wall Image 2021 Maxar Technologies 25 Imagery Date: 11/30/2019 42°53'36.49"N 90°10'03.29" E#26HOSHINE 売 新疆天业 XINJIANG TIANYE Xinjiang Hoshine receives significant subsidies and support from the XPCC. In their 2019 annual report, they indicated that they had received financial incentives/investments from the XPCC in the amount of 40,140,411RMB, and they listed an additional on-going special subsidy from the XPCC that originated in 2012 for the amount of 26,855,298RMB. Xinjiang Hoshine also received compensation from the XPCC in 2017 and 2019 for costs incurred by the company for vocational skills upskilling training they provided to local laborers. Sheffield Hallam Helena Kennedy Centre for University International Justice 26#27Raw Materials • Hoshine • Changji Jisheng New Building Materials Xinjiang Sokesi • 3 others Polysilicon • TBEA/Xinte • GCL-Poly • East Hope Ingots to Modules • JinkoSolar • Trina (possible) Sheffield Helena Kennedy Hallam Centre for University International Justice 27 27#28HOSHINE 4 Hoshine Daqo 7 JinkoSolar Holding Co Ltd (CN) 1 JA Solar Holdings Co (CN) 1 Trina Solar Co (CN) 1 Gaojing Solar (CN) 1 LONGI Green Energy Technology Co (CN) 2 Tianjin Zhonghuan Semiconductor Co (CN) 2 Jiangsu Zhongneng/Xinjiang GCL 3 confirmed current contracts Asia Silicon 1 Wacker Chemie 1 Wuxi Shangji Automation Co (CN) 2 Hong CNY New Materials (CN) 1 Sheffield Helena Kennedy Hallam Centre for University International Justice 28#29Solar Jinko Building Your Trust in Solar 1 Daqo JinkoSolar Holding Co Ltd (CN) 23 Vivint Solar (US) 1 CIMIC Group (AU) 1 Consolidated Edison (US) 1 Consolidated Electrical Distributors (US) 1 Copenhagen Infrastructure Partners K/S (DK) 1 Decmil Group (AU) 1 Elecnor SA (ES) 1 Enel SpA (IT) 1 Engie SA (FR) 1 Fuji Electric Co (JP) 1 Green Light Contractors Pty (AU) 1 Henan Senyuan Electric Co (CN) 1 Hengtong Optic-electric Co (CN) 1 Innotech Corp (JP)1 Jiawei Renewable Energy Co (CN) 1 Kenya Electricity Generating Co PLC (KE) 1 MAONENG Group (AU) 1 Metka-Egn (GB) 1 MVV Energie AG (DE) 1 NextEra Energy (US) 1 Sungrow Power Supply Co (CN) 1 Swinerton Builders (US) 1 Sustainable Power Group (US) 1 2019 annual report customers Sheffield Helena Kennedy Hallam Centre for University International Justice 29#30INDUSTRY RESPONSE SEIA (STS) Solar Energy Industries Association May 19, 2021 CEA SOLAR SUPPLY CHAIN TRACEABILITY PROTOCOL 1.0 INDUSTRY GUIDANCE April 2021 Solar Industry Forced Labor Prevention Pledge Last updated: May 19, 2021 at 9:00AM ET SEIAdditio Solar Energ Industries We, the undersigned companies and organizations, state our firm opposition to the use of forced labor within the solar supply chain. We hereby commit to helping ensure that the solar supply chain is free of forced labor and raising awareness within the industry on this important issue. To assist in these efforts, we support the development of an industry-led solar supply chain traceability protocol as a tool for identifying the source of primary raw materials and inputs and tracking their incorporation into finished products, including solar modules. 8minute Solar Energy Acciona Energy Aegis Renewable Energy AES Clean Energy Affordable Solar age inc. AIONRISE Alion Energy Allterra Environmental, Inc. AlsoEnergy, LLC Alternative Energy Southeast, Inc. Ameresco American Design & Build, Ltd. American Ground Screw American Microgrid Solutions Amicus Solar Cooperative AMP Solar Group, Inc. Apex Clean Energy Holdings, LLC Aptos Solar Technology, LLC Arctic Solar Ventures Corporation Artisan Electric, Inc. Aten Solar Aurora Solar Inc Avangrid Renewables Aztec Solar Inc. BayWar.e. US Belltown Power Texas Best Energy Power Better Builder Birdseye Renewable Energy Black & Veatch Corporation Blattner Energy, Inc. Bluestem Energy Solutions Borrego Solar Systems Bright Night Brooklyn Solarworks C2 Energy Capital CA Clean Energy LLC California Solar Electric Systems, Inc. Candela Renewables Cape Fear Solar Systems, LLC Capital Dynamics Cardno Carolina Mountain Solar Carolina Solar Energy, LLC Catalyze Catamount Solar CED Greentech HQ Clean Energy Associates Clean Energy USA Clean Power Marketing Group Clean Capital Clearway Energy Group CohnReznick, LLP CollectiveSun, LLC Connectgen LLC Convergent Energy and Power Inc. Core Development Group Cottonwood Energy, LLC Cotuit Solar, LLC May 19, 2021 Creative Energies Cubico Sustainable Investments CS Energy Cypress Creek Renewables. D.E. Shaw & Co., LP. DC Energy Innovations, Inc. DNV GL Dominion Energy Duke Energy Dynamic Energy Solutions Eden Renewables EDF Renewable Energy EDP Renewables Encore Renewable Energy Enel Green Power North America, Inc. ENGIE North America Enphase Energy, Inc. EnPower Solutions EnterSolar Eolus Project Holdings, LLC Excelsior Energy Capital FAFCO, Inc. Fire Mountain Solar LLC Florida Solar Partners Flywheel Development LLC ForeFront Power Development, LLC FTC Solar Inc. GCI. System Integration Technology, LLC Geoscape Solar Gigawattinc.com Green Street Power Partners, LLC Greenskies Renewable Energy, LLC Greenspark Solar GRID Alternatives Hanwha Q CELLS America Inc. Hecate Energy Heliolytics Hexagon Energy, LLC Idahome Solar SEIA Idemitsu Renewables IGS Energy Impact Power Solutions Infiniti Energy Services LLC Solar Energy Industries Infrastructure and Energy Alternatives, Inc. Innergex Renewable Energy Inovateus Solar LLC Intersect Power Invenergy LLC Ipsun Solar IronRidge, Inc. JA Solar Jiangsu Seraphim Solar System Co., Ltd. JinkoSolar (U.S.) Inc. JM Services, LLC Juwi, Inc. K2 Systems, LLC Kiterocket KT Black Lightsource bp LG Electronics U.S.A. LONGI Solar Technology (U.S.) Inc. Longroad Energy Holdings, LLC Mayfield Renewables McCarthy Building Companies Inc. McCauley Lyman Megasol Energie AS Merit SI, LLC Mission Solar Energy Morse Associates, Inc. Mortenson muON Marketing Mynt Systems Namaste Solar NARENCO National Grid Renewables Natural Power Consultants Nautilus Solar Energy, LLC NEC Solar Solar Energy Industries Association (SEIA) | 1425 K Street, N.W. | Suite 1000 | Washington, D.C. | 20005 Building a Strong Solar Industry to Power America | www.sela.org www.seia.org Solar Energy Industries Association (SEIA) | 1425 K Street, N.W. | Suite 1000 | Washington, D.C. | 20005 Building a Strong Solar Industry to Power America | www.seia.org Sheffield Hallam Helena Kennedy Centre for University International Justice 30#31US GOVERNMENT RESPONSE • Customs and Border Protection "Withhold Release Order" on Xinjiang Hoshine Silicon Industry Co. Commerce Dept "Entities List" Designation for Hoshine Silicon Industry (Shanshan) • Xinjiang Daqo New Energy • Xinjiang East Hope Nonferrous Metals • Xinjiang GCL New Energy Material Technology . Xinjiang Production and Construction Corps Depart of Labor Designation of Polysilicon Made with Forced Labor in China to the "List of Goods Made with Child or Forced Labor" Sheffield Hallam Helena Kennedy Centre for University International Justice 31#32- U.S. solar advocates are appealing to the administration to refine its initial approach so it still discourages human-rights abuses in Xinjiang without ensnaring imports. Hopper suggested a focus on polysilicon, not the metal from which it is formed. And some solar supporters are asking the administration to phase in future moves so companies aren't caught flat-footed, according to two people familiar with the matter. Sheffield Hallam Helena Kennedy Centre for University International Justice 32#33COALITION TO END FORCED LABOUR IN THE UYGHUR REGION 1) end all contracts with any suppliers that own a subsidiary, facility, or mine in Xinjiang or are a subsidiary of a parent company that owns a subsidiary in the region, and 2) cease all relationships with companies that are being supplied in any way by companies operating in Xinjiang. Sheffield Hallam Helena Kennedy Centre for University International Justice 33#34NEXT STEPS FOR INVESTMENT ● ● ● Expansion of capacity for established companies manufacturing solar supply chain inputs (REC, Wacker, OCI, etc) Development of new manufacturing facilities outside of China Innovation in non-polysilicon-based solar energy (thin film technology, emerging techn) Government and development investment bank green infrastructure investments Sheffield Helena Kennedy Hallam Centre for University International Justice 34#35IN BROAD DAYLIGHT Uyghur Forced Labour and Global Solar Supply Chains LAURA T. MURPHY & NYROLA ELIMÄ Sheffield Hallam Helena Kennedy Centre for University International Justice 35#36Panelists INVESTOR ALLIANCE FOR HUMAN RIGHTS Reginald Smith Research Analyst at Eventide Asset Management 36#37Traceability Can Prevent Mixing Polysilicon 1 WAFER / MODULE MAKER Polysilicon 2 GCL - Poly MIXED ET EVENTIDE ↑ When ingots and wafers are made, polysilicon from many sources is mixed together. If one polysilicon company is exposed to forced labor, all of the products are contaminated. This presentation expresses the views of Eventide Asset Management, LLC's personnel, and there is no guarantee that such views are accurate. The material provided herein is for informational purposes only should not be construed as a recommendation for any investment. There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses. 9/29/2021 37#38The "Bifurcated" Supply Chain Supply chain for United States / Europe NO FORCED LABOR SOLAR MODULE MANUFACTURER Supply chain for other markets FORCED LABOR ET EVENTIDE This presentation expresses the views of Eventide Asset Management, LLC's personnel, and there is no guarantee that such views are accurate. The material provided herein is for informational purposes only should not be construed as a recommendation for any investment. There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses. 9/29/2021 38#39One Long-Term Solution Sourcing from companies that do not use forced labor - directly or in their supply chains – for any of their products is the long-term solution This presentation expresses the views of Eventide Asset Management, LLC's personnel, and there is no guarantee that such views are accurate. The material provided herein is for informational purposes only should not be construed as a recommendation for any investment. There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses. 9/29/2021 39#40INVESTOR ALLIANCE FOR HUMAN RIGHTS Q&A Discussion 40#41Panelists R ALLIANCE IAN RIGHTS Ashleigh Owens Deputy Director, Financial Institutions Lead & Senior Advisor at Shift Project 41#42YES Can I use this influence to sufficiently mitigate the risk? YES Use the leverage Shift START HERE Do I have existing leverage over this third party? NO Can I sufficiently increase my influence through my own actions? For more on the types of leverage that can be found at each decision point, see shiftproject.org/using-leverage NO YES ΝΟ Can that influence sufficiently mitigate Can I increase my the risk? influence through another entity? YES ΝΟ YES YES Can the influence sufficiently mitigate the risk? NO Can I increase my influence through collaborative action? ΝΟ LEVERAGE DECISION TREE YES Can the influence sufficiently mitigate the risk? No NO Can I end the relationship, and do so in a responsible manner? YES End the relationship IF I DECIDE TO REMAIN IN THE RELATIONSHIP... YES Be prepared to demonstrate ongoing efforts at mitigation and accept any reputational, financial or legal consequences of doing so. ©2021 Shift Project, Ltd. All Rights Reserved 42#43D "Business leaders and investors need to ask this question honestly: what is their place in history if they continue to profit by cooperating with a government carrying out a campaign of genocidal repression? They can't say they didn't know." - Omer Kanat, UHRP Executive Director 43#44Investor Action Plan INVESTOR ALLIANCE FOR HUMAN RIGHTS ■ Corporate Engagement with solar sector to be launched in Oct ■ Investors can endorse Call to Action on forced labor - stop sourcing raw materials and inpurs from the UR and particpation in Uyghur governemenr labor transfer schemes - Coalition to End Uyghur Forced Labor ■ Need for collective action and engagement with other stakeholders, including policy makers, at a national, regional and international level 44#45Resources Background Information ■In Broad Daylight: Uyghur Forced Labour and Global Solar Supply (Sheffield Hallam University) ■ Solar Industry Forced Labor Pledge (SEIA) ■ US Department of Labor Adds Polysiliconfrom China to the 'List of Goods Produced by Child Labor or Forced Labor' (U.S. Department of Labor) ■ DHS Issues WROs on Siilica-Based Products Made with Forced Labor in Xinjiang (U.S. Department of Homeland. Security) ■ U.S. Commerce Department adds Chinese Companies to Entities list for Human Rights Abuses (U.S. Department of Commerce) INVESTOR ALLIANCE FOR HUMAN RIGHTS Action Plan Materials ■ Investor Action on the Human Rights Crisis in the Uyghur Region (Investor Alliance for Human Rights) ■ Call to Action (Coalition to End Forced Labour in the Uyghur Region) ■ Human Rights Risks in Xinjiang Uyghur Autonomous Region - Practical Guidance for Investors (Investor Alliance for Human Rights) 45#46Contact Information Anita Dorett Director [email protected] INVESTOR ALLIANCE FOR HUMAN RIGHTS Juliet Ihediohanma Human Rights Fellow [email protected] Thank you! 46#47Investor Alliance for Human Rights A collective action platform connecting institutional investors with tools and strategies to promote corporate respect for human rights. Join Us Sign up to become a member: https://bit.ly/210YDA9 For more information, contact: [email protected] 47