First Solar US, Vietnam plants secure highest auditing status

Manufacturing facilities of leading American solar module producer First Solar in the US and Vietnam have achieved platinum status, the highest possible auditing rating, the firm says.

The firm has published details of onsite third-party social audits conducted across its global manufacturing footprint, in what the multinational believes is an industry first.

On the release of its 2023 Sustainability Report, First Solar said it has established an industry benchmark for transparency by making public details of onsite third-party social audits across its factories.

Details of the findings and First Solar’s corrective actions are included in the report, it said.

First Solar has three operating factories in the Midwestern US state of Ohio, two in Vietnam's Ho Chi Minh City and one in the Malaysia's Kedah state.

While its U.S. and Vietnam operations achieved platinum status, the audits found four service providers at its Malaysia facility falling short of First Solar’s standards, the report said.

First Solar said its integrated manufacturing process helps eliminate risks and traceability challenges associated with outsourcing. As a member of the Responsible Business Alliance (RBA), it conducted three onsite third-party RBA Validated Assessment Program (VAP) audits at all of its manufacturing facilities.

The Malaysia facility is expected to have its VAP closure audit in the fourth quarter of 2023.

The purpose of proven third-party social audits like the RBA VAP social audits is “not to rubber-stamp compliance but to identify and remedy existing and potential issues to help improve the lives of workers across the supply chain.”

“We have chosen to highlight the audit findings openly, not only because of our commitment to transparency and responsible solar, but to raise awareness of modern slavery risks that hide in plain sight and to illustrate the value of an independent third-party social audit conducted in a credible, comprehensive manner,” First Solar CEO Mark Widmar said in the announcement.

“The solar industry will anchor the global transition to a sustainable energy future, and we believe that it must do so responsibly. Quite simply, our industry’s work to power the energy transition and enable the fight against climate change does not serve as credits to offset its social and human rights obligations.”

The report says that First Solar’s new factory in Tamil Nadu, India, scheduled to begin commercial production in the second half of 2023, is expected to be the world’s first net-zero water withdrawal solar manufacturing facility.

“As we continue our journey to growth we are doubling down on our commitment to Responsible Solar and meaningfully contributing to the fight against climate change.

“This includes designing our manufacturing facilities and products with sustainability in mind,” said Widmar.

First Solar has so far invested $830 million in its two Vietnamese facilities located at the Dong Nam Industrial Park in HCMC’s Cu Chi district.

In mid-May 2023, U.S. President Joe Biden vetoed a Congress resolution that would have undone his two-year moratorium on tariffs for solar panels and modules imported to the U.S. from Vietnam, Thailand, Malaysia, and Cambodia.

U.S. solar panel imports in the first quarter of 2023 totaled 850,157 tons, up from 672,863 tons in the fourth quarter of 2022, with Vietnam accounting for 30.4%, followed by Thailand, Malaysia and Cambodia, ratings agency S&P Global said a few days after the Biden veto, citing statistics from New York-based global trade data company Panjiva Inc.

The four Southeast Asian countries accounted for 79.2% of U.S. solar module imports during this year’s first quarter. Among the largest shippers to the U.S. in the first quarter was First Solar’s Vietnam manufacturing subsidiary.