A new study by the Business & Human Rights Resource Centre has revealed a mixed picture when it comes to human rights in the renewable energy sector, however it added that most firms are resisting ‘enormous pressures to ditch progressive measures’.
The 2025 Renewable Energy & Human Rights Benchmark assessed the human rights policies and practices of 35 of the world’s largest renewable energy companies, and found that by and large, the renewables sector is ‘making significant progress on embedding human rights into its operations’, even as adverse government policies (notably in the US), high interest and inflation present potential barriers.
Indigenous Peoples’ rights
However, one of the most concerning findings from the study relates to Indigenous Peoples’ rights, with hardly any companies assessed having adequate policies in place to protect those rights. In addition, the right to free, prior and informed consent (FPIC), a cornerstone of Indigenous rights under international law, is only factored into the policy of one firm.
“Respect for the rights of Indigenous Peoples is a legal and moral imperative that builds lasting trust, reduces the likelihood of conflict, and supports the long-term sustainability of the business,” commented Alancay Morales Garro, senior project Manager & Indigenous Peoples’ rights specialist, Business & Human Rights Resource Centre.
“Furthermore, it reduces the very real risk of financial, legal and reputational damage – which has demonstrated to undermine the sector’s capacity to roll-out renewable energy capacity at the pace required to begin to address the climate crisis. Our analysis shows that addressing this challenge is the right thing to do, and is also essential to investor confidence and project success. With governments calling for a tripling of renewable energy capacity by 2030, companies must act decisively on respecting Indigenous Peoples’ rights.”
Another finding from the study is that supply chain risks are evident in the solar industry, with no company fully disclosing its full solar supply chain – raising concerns over exposure to forced labour in the Xinjiang Uyghur Autonomous Region, an issue flagged by United Nations experts.
European firms lead the way
European firms were found to be at the forefront of embedding human rights policies and practices, the study found, with Ørsted, Iberdrola, Enel Green Power and Vestas leading the way. The top six firms in this year’s benchmark are all European-based, the Centre noted.
“The renewable energy industry is at a crossroads: not only is it building the infrastructures of our future global energy system, but it also has the potential to contribute to a fairer global economic order and shared prosperity for all in the energy transition,” added Caroline Avan, head of natural resources and just energy transition, Business & Human Rights Resource Centre.
“Positively, part of the industry has shown it is taking serious steps towards this. Results from the 2025 Renewable Energy & Human Rights Benchmark show that these companies are coming around to the fact that a fast energy transition can only be one that is also fair and rights-respecting.” Read more here.
