The Engineer - Infyos research identifies human rights abuses in battery supply chain

Infyos, a company specializing in AI supply chain risk analysis, has uncovered that 75% of the global battery market is linked to suppliers with allegations of severe human rights abuses. The company s AI-driven platform, which utilizes thousands of data sources, aims to identify potential human rights risks within the complex supply chains of major renewable energy and automotive companies. The human rights abuses range from forced labor in lithium refining facilities to child labor in cobalt mining, particularly in resource-rich countries with weak governance. The majority of these abuses occur in China, specifically in the Xinjiang Uyghur Autonomous Region (XUAR), where raw materials for batteries are mined and refined. The complexity of battery supply chains, with over 10,000 suppliers, makes it challenging for companies to identify and address these risks. Current approaches like ESG audits are deemed outdated and inadequate in complying with new regulations. Legislation such as the EU Battery Regulation and the Uyghur Forced Labour Prevention Act (UFLPA) in the US are being implemented to address human rights and environmental impacts in the battery supply chain. The UFLPA, for instance, prohibits the import of goods made with forced labor in XUAR. Infyos platform provides actionable mitigations for users to collaborate with their suppliers and improve the sustainability of the industry. However, failure to address these issues could result in companies breaching current and future regulations, hampering investment in the global battery market, which is projected to be worth nearly $500bn in 2030. The UK s Modern Slavery Act has also proposed increasing fines for non-compliance to four per cent of global annual turnover.

Source: theengineer.co.uk
Published on 2024-09-16

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