Climate Change Data

Environmental Metrics

ESG Focus Areas

• Energy administration
• Waste and hazardous materials management
• Product design and lifecycle management
• Employee development programs and policies
• Diversity, equity and inclusion
• Employee health and safety
• Access and affordability
• Data security and customer privacy
• Supply chain management
• Material sourcing and efficiency
• Business ethics
• Risk management
• Management of energy infrastructure and related regulations

Environmental Achievements

• Offset 20.8 million metric tons of CO2e - the equivalent of providing electricity to 3.5 million homes for one year.
• Recycled approximately 90% of total electronic waste every year.
• Reduced air shipping by approximately 63% in Q4 2019 compared to Q4 2018.
• One major supplier in China achieved a 26% reduction in water consumption through system upgrades.

Social Achievements

• Installed one millionth microinverter system.
• Partnered with GRID Alternatives to install more than 29 MW of solar power for low-income communities, benefiting more than 8,200 families.
• Provided approximately 524,000 hours of solar education and training through GRID Alternatives.
• Expanded employee stock purchase plan to include employees outside the U.S.

Governance Achievements

• Appointed first female director to the Board of Directors.
• Expanded Nominating and Corporate Governance Committee Charter to include oversight of Sustainability and ESG strategy.
• Successfully submitted proposals for the creation of a new section in the 2020 edition of the National Electrical Code.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting employees, suppliers, customers, and partners.
• Climate-related disasters affecting operations.
• Data privacy and security concerns.
• Potential risks of forced labor, child labor, human trafficking, and slavery in the supply chain.

Mitigation Strategies

• Developed a task force to manage the COVID-19 pandemic, providing updates, PPE, and flexible work arrangements.
• Implemented significant organizational, technical, and physical safeguards to protect data privacy and security.
• Established a Code of Conduct for suppliers addressing human rights and labor practices.
• Conduct in-depth risk assessments and require extensive questionnaires when selecting suppliers.

Supply Chain Management

Supplier Audits: Quarterly reviews and audits of high-risk suppliers.

Responsible Procurement

• Code of Conduct for suppliers addressing human rights and labor practices.
• Quality Assurance Manual outlining Supply Chain Expectations.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB, GRI

Certifications: ISO 14001 (seven out of ten offices)

UN Sustainable Development Goals

• SDG 7
• SDG 9
• SDG 11
• SDG 13

See page 40 of the report for details.

Sustainable Products & Innovation

• Enphase storage system
• Eighth-generation microinverters with Enphase Ensemble™ technology

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity, Equity, and Inclusion
• Governance
• Human Rights
• Clean Energy

Environmental Achievements

• Reduced 31 million metric tons of carbon dioxide equivalent (MT CO₂e) since inception (equivalent of providing energy to 3.9 million homes for one year)
• 100% of facilities are ISO 14001:2015 certified
• 119kW PV system installed at Petaluma office
• 100% of e-waste generated across North America, India, and New Zealand operations recycled

Social Achievements

• Launched partnership with BurnAlong for employee wellness
• Launched partnership with Women in Cleantech & Sustainability (WCTS)
• Signed the ParityPledge
• CEO signed the CEO Action for Diversity & Inclusion pledge
• Built Enphase Learning Academy

Governance Achievements

• Established Green Financing Framework
• Implemented a clawback policy
• Provided an anonymous third-party whistleblower hotline

Climate Goals & Targets

Environmental Challenges

• Characterizing scope two purchased electricity and heating to identify opportunities to reduce footprint
• Mapping scope three impacts and discovering opportunities for energy conservation
• Assessing supply chain risk exposure regarding human rights

Mitigation Strategies

• Developing scenario-based climate risk assessments
• Integrating climate risk assessments into the annual ERM process
• Strengthening processes for assessing supply chain risk exposure
• Incorporating environmental and social factors in supplier quality assessment surveys (42% coverage in 2021)

Supply Chain Management

Supplier Audits: 42% of new suppliers screened for environmental and social criteria in 2021

Responsible Procurement

• Supplier Code of Conduct
• Screening for ISO 9001, ISO 14001, environmental policy, REACH, and RoHS compliance

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events, grid outages

Transition Risks

• Uncertainty in carbon markets

Opportunities

• Growth of solar energy equipment, battery storage, EV charging, smart load management, and integration with grid modernization efforts

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: ISO 14001:2015

UN Sustainable Development Goals

• Goal 1
• Goal 3
• Goal 4
• Goal 5
• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 11
• Goal 12
• Goal 13

See page 64-65 of the report for details on how Enphase's initiatives contribute to these goals.

Sustainable Products & Innovation

• IQ8 Microinverters (off-grid capability)
• IQ Batteries

Awards & Recognition

• ESG Award and Structured Equity Award from IFR (February 2022)

Environmental Metrics

ESG Focus Areas

• Climate Change

Environmental Achievements

• Increased facilities’ on-site generation capacity by 73%, reaching 260 kW with a plan to increase to 1,747 kW by the end of 2023
• Planned LED motion-sensing light fixture upgrades representing annual savings of 152,675 kWh

Social Achievements

• Not disclosed

Governance Achievements

• Incorporated ESG goals into incentive plans beginning in 2022, including a specific ESG category in the quarterly bonus payout system.

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct requiring emissions tracking and documentation

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Increased revenues from increased demand for products and services
• Reduced indirect (operating) costs from on-site renewable energy and energy efficiency projects
• Reduced indirect (operating) costs from the Inflation Reduction Act (IRA)

Reporting Standards

Frameworks Used: The Greenhouse Gas Protocol: Scope 2 Guidance, The Greenhouse Gas Protocol: Corporate Value Chain (Scope 3) Standard

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Microinverters and integrated solar plus-storage solutions

Awards & Recognition

• Not disclosed