Sonnedix recognised by UN organisation
Sonnedix, an independent solar power producer, has achieved international recognition for its approach to assessing conflict minerals use by panel manufacturers in its procurement evaluations. The company has been featured in a new guide published by the UN Principles for Responsible Investing (UNPRI) which aims to help investors to improve the risk profile of their portfolios and maximise their return by promoting effective management of Environmental, Social and Governance (ESG) risks in the supply chains of their portfolio companies.
The guide, Managing ESG risk in the supply chain of private companies and assets, provides initial steps investors can take to assess and manage supply chain risk; sets out questions for investors to ask investee companies before and after investment; and includes case studies of existing practice, including Sonnedix.
As a solar power producer, photovoltaic modules are a critical component of Sonnedix's business. Evaluating how and to what degree conflict minerals (specifically tantalum, tin, gold and tungsten) are present in the company's supply chain and how this should be considered and addressed was a priority area of focus. Both Sonnedix and its owners, institutional investors advised by J.P. Morgan Asset Management (JPMAM), recognised that responsible mineral sourcing can help avoid both human rights abuses as well as the contribution to conflict fuelled by the extraction and trade of minerals.
Andreas Mustad, CEO, Sonnedix, said:
"Building a sustainable business with a long-term focus on positively impacting the environment and the communities in which we operate is a critical component of our strategy and we believe that focus is strongly linked to the group's success. To have our approach to addressing conflict minerals in the supply chain highlighted by the UN Principles for Responsible Investment is testament to our focus on sustainable and ethical business practices, the forward thinking commitment of our investors, our team and our business partners. While we are proud of this achievement, we will always strive to remain at the forefront of best practices for our industry."
Fiona Reynolds, managing director, PRI said:
"Failing to consider ESG risks in the supply chain can result in reputation damage, examples of which we've seen time and again. The business case for effective management of ESG risk, including in the supply chain, is clear; the only way to guarantee peace of mind on sufficient management of risk to company value is to address the topic with investee companies."
