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Energy Sector Dialogue

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The energy industry plays a key role for private households and the manufacturing sector in Germany. It is essential for solutions to great challenges such as the energy transition or security of supply questions.

In light of human rights violations around the world, energy companies integrated in the global economy are confronted with higher requirements regarding corporate due diligence in their supply and value chains. For example, the extraction of natural resources and the making of semi-finished products for the generation of power in developing and emerging markets come with human rights and environment-related risks. These include inhumane working conditions or adverse environmental impacts and thus health damage in adjacent local communities.

Respecting human rights is crucial for a sustainable supply of energy. Sustainable activities and public acceptance are essential for the business success and future of companies in the energy industry.

Companies must identify human rights and environment-related risks in their supply and value chains early on and fulfil corresponding due diligence obligations appropriately. Since natural resources and semi-finished products for the generation of power originate from a few countries only, joint action is needed in order to have the necessary leverage.

Through the Energy Sector Dialogue, the participating companies, business associations, trade unions, civil society organisations, the German Institute for Human Rights and the Federal Ministry of Labour and Social Affairs want to pool expertise and resources, addressing human rights and environment-related risks faced by the German energy industry in its global supply and value chains. The aim is to improve the human rights situation and the state of the environment.

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The infograph shows the process of the energy sector dialogue. The processes focuses on six focus areas:

  • wind energy,
  • solar energy,
  • power grids,
  • battery storage,
  • hydrogen and
  • natural gas.

The first step of the sector dialogue is knowledge creation: This means risk mapping of the value chains of selected focus areas of the German energy industry.

The analysis and selection of relevant risks constitutes the second step. It involves the identification and geographic localisation of risks in the selected focus areas of the German energy industry. The outcome of this analysis is a publication on potential human rights risks.

Building on the publication, the development of concrete measures is the third step. In order to develop the measures, it is first necessary to select priority issues. For these priority issues, plans for joint prevention measures and remedies are then developed and documented.

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