Beyond Clean Energy: Child Labour in Indium Supply Chains

In September, the US Bureau of International Labor Affairs released a new and updated TVPRA List of Goods Produced by Child Labor or Forced Labor. One focus of the new list was the expansion of inputs produced with Child Labour. This focus on downstream Goods means that previously unseen Child Labour risk, such as in Indium production, is now included.

Indium plays a significant role in the Energy Transition. Approximately 45% of the indium global supply is used to make indium tin oxide, which is used to make high-performance solar panels and energy-efficient LCDs. These uses emphasise its importance in moving towards a low-carbon, sustainable energy future required to combat climate change. 

However, indium produced in South Korea has now been proven to have been extracted from zinc that was mined in Bolivia using Child Labour. Boys as young as 13 years old were found to commonly work in underground mines in Potosi and Oruro, where they are subjected to hazardous working conditions including narrow tunnels, heavy machinery, extreme temperatures, and exposure to dust and chemicals without ventilation. 

In 2022, South Korea imported over $385 million USD in zinc concentrate from Bolivia, accounting for 16.3% of its zinc concentrate imports. Parts of these imports, linked to Child Labour in Bolivia's cooperatives, were used to produce indium.

South Korean imports of zinc. Data adapted from WITS and OEC.

Zinc concentrate from multiple sources is often mixed, combining responsibly mined zinc with zinc mined using Child Labour before it is exported. This blending makes traceability challenging. As a result, many downstream goods containing zinc such as solar panels, conductive glass, touchscreen devices, flatscreen devices, televisions, semiconductors, indium-tin oxide, and LEDs may be produced with an input produced by Child Labour. Consequently, it becomes difficult for businesses to determine whether Child Labour has been used within their supply chain. This highlights the nuanced landscape of these risks across various goods and countries, showing the critical need for targeted monitoring and intervention strategies. 

Child Labour is an urgent issue that needs to be addressed. Due to incoming regulations, businesses and investors will need to be held accountable at all tiers of their supply chains. This required supply chain transparency will shortly shine a spotlight on material Human Rights abuses occurring in the upper tiers of corporate supply chains. 

Overall, the new List of Goods underlines the widespread issue of Child Labour in global supply chains, particularly in resources vital for clean energy. While these resources are essential to combating climate change, their extraction often involves severe Human Rights abuses, including hazardous Child Labour. Greater transparency within supply chains is urgently needed to reduce Child Labour, protect vulnerable individuals and ensure a fairer transition to cleaner energy. The contradiction between environmental goals and child exploitation requires immediate attention to protect children's rights and well-being.