ENSURING SUSTAINABILITY IN NEW TECHNOLOGIES

The Motivation

Green and ethical investing can help companies mitigate risks while promoting positive change.

Suntech Power Holdings, a leading global Chinese solar company had originally been approved for Henderson New Star’s global funds. However, in 2008, an article appeared in the US media alleging that one of the company’s silicon suppliers was unsafely disposing of waste materials.

The Opportunity

The Henderson team contacted the company to determine the validity of the allegations and to better understand how the company intended to address the issue. They also proposed specific recommendations on how to tackle the issue going forward.

The Impact

Later that year, Suntech announced that they would be implementing Henderson’s recommendations, which include having a formal clause in the supplier code on environmental issues, and implementing a system to monitor and audit supplier compliance.

My-Linh Ngo, Henderson New Star Associate Director of SRI Research said, "Given that the company is a key player in a rapidly growing industry, we anticipate that such practices will not only benefit Suntech, but help encourage more responsible practices in the solar industry as a whole."

Provided by Henderson New Star