Energy sector takes responsibility for clean energy and strong supply chains
GIZ initiated the ‘Energy Sector Dialogue’. The partnership for sustainable value chains and supply chains now manages and organises itself. It is an example of genuine sustainability.
Private-sector commitment in the energy sector continues
From public initiative to independent financing: Since 2023, on behalf of the German Federal Ministry of Labour and Social Affairs (BMAS), we have been bringing together companies, civil society, trade unions and governments as part of the Energy Sector Dialogue. Together, they are pursuing the goal of making value and supply chains in the energy sector more sustainable.
The initiative is now taking the next important step: The project is being handed over to the network of UN Global Compact Deutschland e.V. and will in future be supported by the member companies themselves. This demonstrates what makes our successful promotion of sustainability so effective: providing impetus, building structures – and handing over responsibility to the sector in a sustainable manner.
The UN Global Compact is the world’s largest and most important initiative for sustainable and responsible corporate governance. The UN Global Compact Network Germany (UN GCD) brings together around 1,290 companies and institutions from the private sector, civil society, academia and the public sector. It supports companies in strategically embedding sustainability and assuming global responsibility for sustainable development.
Needs-based, practical and with combined efforts
Due diligence obligations along supply chains have long been firmly established in the energy sector. For many companies, they are not only a legal obligation but also part of their corporate identity – as is the case for the members of the Sector Dialogue: BayWa r.e. AG, EnBW Energie Baden-Württemberg AG, ENTEGA AG, E.ON SE, EWE AG, Hamburger Energienetze GmbH, Mainova AG, MVV Energie AG, RWE AG, Stromnetz Berlin GmbH, TenneT TSO GmbH, Uniper SE and Vattenfall GmbH. Membership has grown every year since the organisation was founded.
’Many of the greatest human rights challenges associated with the energy transition require joint action and cooperation across the value chains. The Sector Dialogue offers a unique platform on which companies, policymakers, trade unions and civil society can develop a shared understanding of risks and work together on practical solutions. For RWE, this collaborative approach is a key reason for supporting the continuation of the initiative.’
Raw materials and intermediate products for energy generation often come from just a few countries. That is why cooperation is needed to bring about change along the supply chains. The members are working together to highlight and mitigate human rights and environmental risks. The Energy Sector Dialogue examines key areas of the energy transition: photovoltaics, wind energy, electricity grids, natural gas, battery storage and hydrogen.
Among other things, the focus is on environmental damage caused by the extraction of important raw materials such as cobalt, copper, bauxite and nickel. Quartz sand and silicon, for example, are also extracted from riverbeds in China. This can pollute the water and endanger drinking water supplies. Furthermore, members are campaigning for better working conditions, for example, in the construction of electricity grids and power plants. This includes safe working conditions and fair wages.
Sustainability and the economy go hand in hand
The Energy Sector Dialogue makes its analyses and reports available to the entire sector for guidance. In this way, it supports companies in developing and implementing measures to mitigate these risks. At the same time, the work of the Sector Dialogue helps companies to meet the requirements of the Supply Chain Due Diligence Act and their general due diligence obligations.
The benefits for all parties are clear: Workers and countries benefit from strengthened human rights, safer working conditions and reduced environmental impact. In addition to this, stable supply and value chains ensure more reliable prices and improve the availability of energy. Companies can plan their investments with greater certainty and better fulfil their responsibilities.
We were delighted to help launch this model, which delivers added value for everyone. A good initiative is one that, at some point, is no longer needed – and that is precisely what has been achieved here. We wish the Energy Sector Dialogue continued success.
If your company is also interested in sector-specific dialogue formats or joint projects for sustainable supply and value chains, we look forward to hearing from you via @email.
