Sunedison’s Statement Under The California Transparency In Supply Chain Act Of 2010

SunEdison Inc. and its subsidiaries and affiliates (collectively "SunEdison") are dedicated to protecting and promoting human rights and, as such, are focused on the identification and eradication of any and all instances of slavery and human trafficking from its supply chain. SunEdison is a member of the Electronic Industry Citizen Coalition (EICC) and has adopted the EICC Industry Code of Conduct labor standards ("Labor Standards"), and requires its supply chain to strictly adhere to those standards.  The Labor Standards prohibit the use of forced labor, slavery, involuntary prison labor, child labor and human trafficking.

The California Transparency in Supply Chains Act of 2010 (the "Act") requires retailers and manufacturers to disclose the measures they use to identify and track possible slavery and human trafficking in their supply chains. The disclosure is aimed at providing information to consumers, allowing them to make better, more informed choices about the products they buy and the companies they support, with the end goal of eradicating slavery and human trafficking from companies' supply chains.  SunEdison's efforts in support of this goal include the following:

  1. Evaluation and verification of product supply chain to address risks of human trafficking and slavery.  SunEdison conducts regular assessments of its manufacturing facilities to identify any risks of human trafficking or slavery or other potential violations of the Labor Standards.  This assessment typically includes site visits and supplier questionnaires.  SunEdison's evaluation is conducted internally through its own supply chain organization, not by a third-party organization. In addition, SunEdison contractually requires that its suppliers: (1) comply with all laws and regulations governing labor and employment; (2) prohibit the use of child or forced labor in the manufacture of products supplied to SunEdison; and (3) comply with the EICC Labor Standards.    SunEdison requires its suppliers to notify SunEdison within twenty-four hours of any non-compliance with the preceding requirements.  

  2. Supplier audits. SunEdison makes every effort to retain the right in its supply contracts to conduct unannounced audits of the facilities of its direct suppliers to verify adherence with the Labor Standards and other contractual requirements. Such audits may be conducted with or without suspicion of activities that violate the Labor Standards, and may be conducted by SunEdison or by a third-party auditor upon notice. Suppliers are expected to address all identified issues as noted, and corrections of any identified issues shall be validated during a follow-up independent audit.

  3. Certification of direct suppliers. SunEdison's supply agreements include a provision requiring that the supplier's facilities adhere to the Labor Standards and that the supplier is not otherwise engaged in human trafficking or slavery. Violation of any Labor Standards may result in the termination of SunEdison's business relationship with the supplier.  Suppliers are contractually required to keep complete and accurate records of their compliance with Labor Standards and are required to provide such records to SunEdison upon request.

  4. Internal accountability standards. SunEdison requires all of its directors, officers and employees to act ethically and requires compliance with SunEdison's Code of Business Conduct, which is available at  SunEdison's Code of Business Conduct specifically prohibits forced labor and child labor.  SunEdison has established a Global Ethics and Compliance Committee to oversee and manage its ethics and compliance program.  The goal of this committee is to (1) monitor developments in applicable legal and regulatory standards, industry practice, and general best practices relating to global ethics and compliance programs; and (2) review Global Ethics and Compliance Committee the effectiveness of the Global Ethics and Compliance program under applicable legal and regulatory standards, including the effectiveness of our policies and procedures, training, auditing, monitoring, reporting, investigations, discipline, disclosure, and the awareness and promotion of an ethical culture within SunEdison.

  5. Employee and management training. Every SunEdison employee is required to comply with the SunEdison Code of Conduct and SunEdison requires annual Code of Conduct training.  SunEdison also trains employees responsible for procurement and supply chain management on how to identify and respond to supply chain issues, such as forced labor or child labor, and is in the process of expanding this training. SunEdison's training explains the definition, purpose, and enforcement of SunEdison's Labor Standards as well as how to mitigate the risks within the supply chains of products.