Business & Human Rights Resource Centre and Equidem published Rush to renewables: Toward migrant worker rights and a just energy transition in the Gulf (November 2024) that delves into how the renewable energy sector in the Gulf is falling short in identifying and mitigating worker rights risks.
Human Level’s Take:
- If you are a company developing or constructing in the renewable energy sector in the Gulf, this report is for you. If you are connected to the industry - for instance by financing, supplying or providing professional advisory services to the sector, this report is also for you. If you could be a user of renewable energy generated in the Gulf, for instance, through a power purchasing agreement, this report is also for you!
- The renewable energy sector in the Gulf is rapidly expanding, with 21 projects operational, 19 under construction, and 35 more planned by 2030, driven by strong solar and wind potential and rising energy demand.
- However, this growth comes with significant human rights risks for migrant workers, who form the backbone of the workforce. Migrants face extreme heat, gruelling physical labor, and systemic issues such as unfair recruitment practices, inadequate living conditions, and restricted freedom of movement.
- Remote project locations further exacerbate risks by isolating workers, limiting oversight, and increasing vulnerability to exploitative subcontracting practices. For instance, recent investigations in the UAE by Equidem found forced labor indicators across multiple renewable energy multiple projects
- Despite the scale of these risks, most renewable energy developers operating in the region fall short in their commitments to human rights. Few have comprehensive human rights policies, address migrant workers’ vulnerabilities, or align with fair recruitment standards like the Employer Pays Principle.
- To address these challenges, companies are expected to advocate for stronger migrant worker protections, implement robust human rights due diligence, enforce transparency, emphasize fair recruitment, engage unions in dialogue, and ensure access to remedies.
- Without these steps, no just transition in the Gulf’s renewable energy sector is possible. The window of opportunity is rapidly closing. Companies: time to act with purpose.
Some key takeaways:
Background of renewable energy in the Gulf
- The Middle East, including the Gulf Cooperation Council (GCC) countries of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE, is historically reliant on fossil fuels.
- Renewables have grown from 0% in 2012, to 3% of the GCC’s total electricity capacity - 56GW in 2022 which constitutes 10% of the MENA region’s total market
- Renewables in the GCC states are set to increase: the region has a rapidly growing domestic energy demand, all GCC countries have adopted renewable energy targets, and the GCC states boast exceptional solar irradiation and resource potential, ideal for both solar photovoltaic and concentrated solar power. Complementing this are moderate to strong wind conditions, creating a promising landscape for renewable energy growth.
- 21 renewable energy projects are operational and 19 are under construction. 35 are planned and the majority will be operational by 2030.
Human rights risks faced by migrant workers in the sector
- Low-wage migrants from Nepal, India, Bangladesh, Philippines, Pakistan and Kenya (amongst other countries) form the majority of the private sector workforce in the Gulf
- These migrants to the Gulf are facing “double impacts” from the climate crisis
- First, they are have been experiencing climate-linked harms in their home countries, such as flooding, drought, tropical storms, industrial pollution and disease outbreaks, which in turn is leading them to flee their hoes
- Second, as they arrive in the Gulf, they are exposed to scorching temperatures. Migrants undertake hard, physical labour in high humidity and temperatures that can exceed 55°C which has a number of severe impacts on their health, or lives.
- In addition to heat stress, there are a number of other severe human rights risks faced by migrant workers when they work in the Gulf. These include violations related to employment standards, restrictions on freedom of movement, unfair recruitment practices, inadequate living standards, occupational health and safety breaches, barriers regarding access to remedy, verbal and physical abuse, and restrictions on freedom of expression.
- A particular risk for the sector is isolation. Renewable energy project sites and worker accommodation are often located remotely from urban areas, where sandstorms can hamper travel and access, meaning non-sector personnel cannot easily meet with workers to witness or document working conditions, nor can workers easily leave the area. Access to projects is also severely restricted.
- Another particular risk is the well-established industry practice of hiring most of the workforce through subcontracted companies, particularly for sub-sectors such as security or delivery, creates specific risks for migrant workers. These companies are known to engage in highly exploitative practices with minimal oversight from developers or other companies.
- Construction and engineering is the sector where there are the highest proportion of cases. Other at-risk sectors include shipping and handling; security companies; hotels, restaurants and leisure; and cleaning and maintenance.
- A specific investigation conducted by Equidem in 2023 and 2024 documented a slate of rights violations impacting migrant workers in the labour supply chains of ten major renewable energy developers operating solar and wind farms in the United Arab Emirates (UAE). Equidem confirmed 10 out of 11 forced labour indicators – including abuse of vulnerability, deception, restriction of movement, physical and sexual violence, intimidation and threats, holding identity documents, withholding wages, abusive living and working conditions, and excessive overtime The presence of these indicators, when taken together, create conditions of forced labour for migrant workers in the renewables sector in the UAE
Companies’ commitments and performance
- An assessment of developers’ and contractors’ commitments to human rights, relevant processes, and just transition planning in the region reveals gaps regarding respect for migrant workers
- Just over half of the 27 sampled companies has published a human rights policy aligning with international standards
- Under half explicitly recognised migrant workers’ vulnerabilities
- While almost every company has published a supplier code of conduct, only half covered respect for fundamental rights at work
- No company publicly aligned with the international standard on fair recruitment – the Employer Pays Principle
- Only one quarter expressly prohibited recruitment fee-charging,
- Three companies – EDF, Engie and TotalEnergies – had entered into a Global Framework Agreement with an international trade union federation, but did not outline how they supported worker representation in the Gulf
- Few companies committed to engage unions in social dialogue as part of their global just transition planning
- None recognised the importance of engaging with migrant workers
Recommendations for renewable energy developers and contractors
- The report concludes with a number of recommendations for renewable energy developers and contractors.
- When it comes to just transition, businesses should advocate for Gulf governments to protect migrant workers’ rights, including freedom of association and collective bargaining. They must ensure decent work with fair wages, secure employment, and workplace expression, while engaging unions or worker representatives to safeguard rights during the renewable energy transition. Consulting civil society and diaspora groups is vital to addressing risks and providing remedies.
- When it comes to value chain transparency, companies must address human rights risks in subcontracting by disclosing details of contractors, labor suppliers, and procurement processes. Enforcing binding supply chain standards ensures labor rights are upheld across all operations and partnerships.
- When it comes to human rights due diligence, businesses should focus on identifying high-risk sectors and migrant workers in their supply chains. Conducting thorough due diligence on partners and clearly defining labor rights responsibilities within subcontracting relationships are essential steps.
- When it comes to fair recruitment, employers should adopt the Employer Pays Principle, ensuring recruitment costs are covered by employers. Mapping migration corridors and recruitment processes helps identify risks and improve ethical hiring practices.
- When it comes to redress and remedy, businesses must act swiftly on abuse allegations, prioritize workers’ testimony, and provide transparent remedies. They should openly communicate with stakeholders and protect whistleblowers and labor rights defenders.
