Sungrow Power Supply Co., Ltd.
Climate Impact & Sustainability Data (2022, 2023)
Reporting Period: 2022
Environmental Metrics
Total Carbon Emissions:43257.09 tCO₂e
Scope 1 Emissions:3310.98 tCO₂e/year
Scope 2 Emissions:37816.49 tCO₂e/year
Renewable Energy Share:45%
Total Energy Consumption:114,337,023 kWh/year
Water Consumption:316,713 m3/year
Waste Generated:1967.96 tons/year
Carbon Intensity:0.0899 tons of standard coal/MW
ESG Focus Areas
- Climate Change
- Energy Management
- Green Operation
- Pollutant Control
- Ecological Conservation
- Corporate Governance
- Employee Development
- Operational Safety
- Community Investment
- Supply Chain Sustainability
Environmental Achievements
- Reduced carbon dioxide emissions by nearly 380 million tons annually through cumulative installed capacity of 340+ GW of inverter equipment.
- Achieved 45% green power consumption.
- Developed the world's first 35 kV PV inverter.
- Awarded the Demonstration Enterprise of Green Design for Industrial Products.
- Avoided 23,331.44 tons of carbon emission by directly purchasing green power and generating power with rooftop PV power stations.
- Offset 10,265.40 tons of carbon emission by purchasing I-REC.
Social Achievements
- Donated CNY 10 million to set up a charity fund.
- Launched global volunteer service programs.
- Improved employee satisfaction rate to 93.78%
- Achieved 100% social insurance and labor contract coverage for employees.
- Employee turnover (voluntary) at 13.45%.
Governance Achievements
- Developed Sungrow Principles and incorporated ESG into the Company's core philosophy.
- Established the Digital Transformation Management Committee.
- Revised the Code of Conduct for Sungrow Executives and Managers, the Regulations on Internal Audit and Supervision, the Regulations on Integrity and Self-Discipline, and formulated the Regulations on Whistle-blowing and Appealing.
- Achieved 100% signing rate of the Integrity Pact by all suppliers and distributors.
- Information disclosure performance rated A.
Climate Goals & Targets
Long-term Goals:
- Carbon neutrality in operations by 2028.
Medium-term Goals:
- Achieve 100% renewable energy use by 2028 (RE100 commitment).
- Increase energy efficiency by at least 35% by 2028 (EP100 commitment).
Short-term Goals:
- Increase green power consumption by a minimum of 10% annually.
Environmental Challenges
- Climate change related physical risks (flood, blizzard, heatwave, extreme weather, sea level rise) impacting operations, supply chain, and personnel.
- Transition risks related to policy/legislation changes, technological advancements, and market preferences.
- Increasing energy consumption due to new plant operations and capacity expansion.
Mitigation Strategies
- Developed multiple transportation plans, safety stock, flood control plans, cold-proof plans, and cooling measures.
- Implemented green procurement, green design, and gradual upgrade to electric vehicles.
- Increased R&D investment, optimized high energy consumption processes, and used green power.
- Implemented refined energy management through PV power generation, energy storage, clean energy supply, and a smart energy management platform.
Supply Chain Management
Supplier Audits: 4 on-site audits in 2022
Responsible Procurement
- Supplier Code of Conduct
- Integrity Pact
- Supply Agreement
- ESG self-assessment
- Conflict Minerals Reporting Template (CMRT) survey
Climate-Related Risks & Opportunities
Physical Risks
- Flood
- Blizzard
- Heatwave
- Extreme weather
- Sea level rise
Transition Risks
- Policy/legislation changes (carbon pricing, carbon taxes, regulations on high-emission industries, electric vehicle mandates)
- Technological advancements in renewable energy
- Market preference shifts towards low-carbon products
Opportunities
- Growth in renewable energy sector
- Development of energy-efficient products and services
Reporting Standards
Frameworks Used: GRI Standards (2021 version), TCFD Recommendations, Social Responsibility Guidelines for Companies Listed on the Shenzhen Stock Exchange, CASS Guidelines for Preparing Social Responsibility Report in Chinese Enterprises (4.0)
Certifications: ISO 14001, ISO 45001, ISO 50001, SA8000, IECQ QC 080000, CMMI Level 3, ISO 26262, ISO 27001, ISO 27701, IATF16949
Third-party Assurance: SGS-CSTC Standards Technical Services Co., Ltd.
UN Sustainable Development Goals
- Goal 7 (Affordable and Clean Energy)
- Goal 9 (Industry, Innovation and Infrastructure)
- Goal 13 (Climate Action)
Initiatives contribute to these goals through renewable energy development, technological innovation, and emission reduction efforts.
Sustainable Products & Innovation
- 1+X Modular Inverter
- Liquid-Cooled Energy Storage Systems - PowerTitan, PowerStack
Awards & Recognition
- Demonstration Enterprise of Green Design for Industrial Products
- Water-Saving Enterprise in Hefei
Reporting Period: 2023
Environmental Metrics
Total Carbon Emissions:41,755 t CO2e
Scope 1 Emissions:3,594 t CO2e
Scope 2 Emissions:38,161 t CO2e
Scope 3 Emissions:8,953,862 t CO2e
Renewable Energy Share:55%
Total Energy Consumption:186,819,983 kWh
Water Consumption:459,024 tons
Waste Generated:3,210.48 tons
Carbon Intensity:56915 tons of CO2e/GW
ESG Focus Areas
- Green Mission, Better Life
- Excellent Governance
- Towards Net Zero
- Eco-friendly Development
- Mutually Beneficial Collaboration
- Diversity and Inclusion
Environmental Achievements
- Reduced greenhouse gas emissions (Scope 1 + Scope 2) to 41,755 tons of CO2e in 2023, down by 1,502 tons compared with 2022.
- Increased the proportion of green electricity use to 55% in 2023.
- Saved over 1,300 MWh of electricity throughout the year.
- VOC emissions per unit of production capacity dropped by 46.4% and particulate matter emissions per unit of production capacity dropped by 87.1%.
- Water consumption intensity per unit product in 2023 was 2.34kg/kW, down 37.3% from the 2020 level.
- Recycling rate in 2023 reached 60.1%.
- SG320HX series inverters earned EPD certification.
Social Achievements
- Total donation of RMB 65 million to public welfare.
- Carried out the “Go For Nature” volunteer services, engaging employees worldwide for over 3,400 hours.
- Employee training coverage hit 100% in 2023.
- Lost-time injury frequency rate per million hours worked was 0.84 in 2023.
- Local employment rate reached 98.8% in 2023.
- Built ten artificial caves for wildlife and the total planting area of Sungrow Forest Program reached about 13.3 hectares.
Governance Achievements
- Established the Strategy and Sustainable Development Committee.
- Implemented ESG-related remuneration for all directors, supervisors, and senior executives.
- Launched ISO37301 certification work in key compliance areas.
- Improved the compliance management system.
- Passed the dual certification of ISO/IEC 27001 and ISO/IEC 27701.
Climate Goals & Targets
Long-term Goals:
- Achieve carbon neutrality across the supply chain (Scope 1 + 2 + 3) by 2038
- Achieve net-zero emissions across the supply chain by 2048
Medium-term Goals:
- Reduce energy consumption per unit of product production by at least 10% by 2025 (compared to 2020)
- Achieve carbon neutrality at the operational level (Scope 1 + 2) by 2028
- Achieve 80% supplier ESG audit coverage and 98% code of conduct signing by 2028
Short-term Goals:
- Reduce water consumption intensity per unit product by 40% by 2025 (compared to 2020)
- Reduce VOC emissions per unit of production capacity by 30% and particulate matter emissions by 75% by 2025 (compared to 2020)
- Increase renewable energy use to 100% by 2028
Environmental Challenges
- Climate-related physical risks (flooding, high temperature, extreme cold, extreme weather)
- Climate-related transition risks (carbon tariffs, enhanced carbon emission reporting, increased procurement costs for low-carbon raw materials)
- Reputational risk from failure to meet carbon reduction targets
- Shortage of tradable carbon resources and rising carbon prices
Mitigation Strategies
- Developed rapid response mechanisms for short-term risks.
- Developed strategies to cope with medium-term risks and seize opportunities.
- Monitoring and managing long-term risks and opportunities.
- Investing in renewable energy (rooftop PV power stations, green electricity purchases).
- Implementing energy conservation measures.
- Strengthening supply chain carbon management.
- Conducting carbon footprint accounting and EPD certification.
Supply Chain Management
Supplier Audits: 33 on-site audits in 2023
Responsible Procurement
- Supplier Code of Conduct
- ESG audits
- Due diligence on conflict minerals
- Carbon management requirements
Climate-Related Risks & Opportunities
Physical Risks
- Flooding
- High temperature and heatwave
- Extreme cold
- Extreme weather
Transition Risks
- Carbon tariffs
- Enhanced disclosure obligations
- Increased procurement costs for low-carbon materials
- Shortage of tradable carbon resources
Opportunities
- Increased demand for low-carbon products
- Policy support for the new energy industry
- Economic benefits from carbon market trading
Reporting Standards
Frameworks Used: GRI Standards (2021 version), IFRS S2, Social Responsibility Guidelines for Companies Listed on the Shenzhen Stock Exchange, CASS Guidelines for Preparing Social Responsibility Report in Chinese Enterprises (5.0)
Certifications: ISO 14001, ISO 45001, ISO 50001, ISO/IEC 27001, ISO/IEC 27701, SA8000, EPD (for SG320HX and SG350HX series)
Third-party Assurance: SGS-CSTC
UN Sustainable Development Goals
- SDG 7
- SDG 8
- SDG 9
- SDG 11
- SDG 12
- SDG 13
Initiatives contributing to these goals are detailed in the report.
Sustainable Products & Innovation
- 2000V inverter
- 10MWh all-liquid-cooled energy storage system
- Flexible hydrogen production system
Awards & Recognition
- China Patent Silver Award
- Anhui Provincial Patent Gold Award
- Various other awards listed in the report