Canadian Solar Inc.

Climate Impact & Sustainability Data (2021, 2022)

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:1,032,960 tCO2e/year

Scope 1 Emissions:61,946 tCO2e/year

Scope 2 Emissions:971,014 tCO2e/year

Renewable Energy Share:1.5% (self-generated solar only), 23% (including grid)

Total Energy Consumption:5,473,504 GJ/year

Water Consumption:9,027,000 m3/year

Waste Generated:95,600 tons/year

Carbon Intensity:130 tCO2e/MWp in 2021

ESG Focus Areas

Climate Change
Diversity & Inclusion
Responsible Supply Chain
Environmental Stewardship
Ethical Business Conduct
Employee Well-being

Environmental Achievements

17% reduction in GHG emissions intensity (2017-2021)
53% reduction in manufacturing water intensity (2017-2021)
36% reduction in manufacturing waste intensity (2017-2021)
18% reduction in manufacturing energy intensity (2017-2021)
Successfully launched high-efficiency N-type Heterojunction (HJT) module in 2021
HiKu6 module carbon footprint decreased by 6.0% compared to prior HiKu product

Social Achievements

Increased female representation in the workforce to 36% in 2021
25% of middle management positions filled by women in 2021
Established an Anti-Modern Slavery Task Force in 2021
Recordable injury rate of 0.68 cases per million working hours in 2021 (lowest in five years)
Launched Zero Waste Office Program in Q1 2022
Partnered with Cornell University to offer leadership training and mentorship to female leaders

Governance Achievements

Board passed a resolution in May 2022 mandating a third-party assessment on forced labor
Established five board committees including a Sustainability Committee
Maintained 99% board meeting attendance rate in 2021
No information security incidents in the past three years

Climate Goals & Targets

Long-term Goals:

Achieve 100% renewable energy in operations before 2030
Reduce carbon intensity by 30% by 2026

Medium-term Goals:

Achieve 69% renewable energy in operations by 2026
Reduce module carbon footprint to 66% of 2020 levels by 2025

Short-term Goals:

Reduce energy intensity by 33% by 2026
Reduce water intensity by 44% by 2026
Reduce disposed waste intensity by 33% by 2026
Increase female representation in global workforce to 40% and in middle management to 30% by 2026
Increase share of employees with special needs to 1-2% by 2026

Environmental Challenges

Increased absolute energy consumption, water withdrawal, and waste production in 2021 due to capacity expansion and shift to monocrystalline ingoting technology
Power curtailment in certain Chinese factories in 2021
Managing climate-related risks such as regulatory changes, environmental impacts of operations, and product end-of-life management
Managing social risks related to labor standards in the supply chain

Mitigation Strategies

Prioritizing capacity expansions for products using more efficient N-type technologies
Implementing energy management pilot programs following ISO 50001
Establishing an Environmental Management System with 5-year rolling targets
Conducting supply chain ESG audits and implementing ESG compliance audits
Investing in R&D for module recycling technologies and longer-lasting modules
Developing anti-modern slavery policies and procedures, establishing an Anti-Modern Slavery Task Force

Supply Chain Management

Supplier Audits: Onsite or desk audits conducted annually for all critical suppliers and 5-10% of non-critical suppliers

Responsible Procurement

Supplier Code of Conduct
ESG audits
Anti-modern slavery clauses in purchase agreements
Conflict Minerals Policy

Climate-Related Risks & Opportunities

Transition Risks

Increased costs and administrative responsibilities due to changes in climate, energy, and environmental regulations

Opportunities

Growing demand for solar modules and battery storage systems
Growth opportunities in solar power plant development and O&M
Green financing opportunities

Reporting Standards

Frameworks Used: TCFD, SASB, GRI

Certifications: ISO 14001, ISO 45001

UN Sustainable Development Goals

Goal 7 (Affordable and Clean Energy)
Goal 13 (Climate Action)

Company's activities in solar energy production and project development contribute to these goals.

Sustainable Products & Innovation

High-efficiency N-type HJT modules
N-type TOPCon modules
Long-lifetime modules (40-year lifespan)
Modules with reduced material consumption aluminum frames
Fluoride- and lead-free module designs

Awards & Recognition

Green Bond of the Year award from Environmental Finance

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:1,545,462 tCO₂e/year

Scope 1 Emissions:75,647 tCO₂e/year

Scope 2 Emissions:1,213,638 tCO₂e/year

Scope 3 Emissions:256,177 tCO₂e/year

Renewable Energy Share:29%

Total Energy Consumption:6,225,779 GJ/year

Water Consumption:8,550,000 m3/year

Waste Generated:129 kt/year

Carbon Intensity:123 tCO₂e/MWp in 2022