Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Governance
• Supply Chain Sustainability
• Employee Well-being

Environmental Achievements

• Began collecting data to reduce Scope 1 and 2 emissions and water use; laid groundwork for Scope 3 emissions reduction.
• Recycled 30,051 pounds of aluminum waste at Albuquerque facility.
• Implementing ISO 14001 environmental management system.

Social Achievements

• Launched Array Café employee reward and recognition platform.
• Donated to nonprofits through “Share the Sunshine” contest.
• Maintained operations and employee pay during COVID-19 pandemic; grew employee headcount by over 70%.

Governance Achievements

• Board exceeds NASDAQ’s minimum diversity standard (44% POC directors).
• Implemented Anti-Bribery and Anti-Corruption Policy with annual FCPA training.
• Established third-party-managed Integrity Hotline for reporting policy violations.

Climate Goals & Targets

Environmental Challenges

• Reducing Scope 3 emissions across the value chain.
• Expanding diversity and inclusion within the company.
• Managing cybersecurity and data privacy risks.

Mitigation Strategies

• Identifying opportunities to manufacture products closer to non-U.S. customers.
• Implementing a multi-year plan to advance diversity, equity, and inclusion.
• Adopting a best-in-class cybersecurity framework and continually evolving security architecture.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct; Conflict Minerals Policy; partnership with Nucor and POSCO.

Climate-Related Risks & Opportunities

Opportunities

• Development of energy storage solutions.

Reporting Standards

Frameworks Used: SASB, GRI

Sustainable Products & Innovation

• DuraTrack HZ v3 solar trackers.

Environmental Metrics

ESG Focus Areas

• Climate Action
• Energy Management
• Water Management
• Waste Management
• Diversity, Equity, and Inclusion
• Employee Health & Safety
• Board Composition
• Ethics and Integrity
• Supply Chain Sustainability

Environmental Achievements

• Reduced water consumption by 13%
• Increased aluminum waste recycled by about 12%
• Implemented an Environmental Management System to meet ISO 14001:2015 standards

Social Achievements

• Achieved an excellent employee Net Promoter Score of 47
• Launched the "Share the Sunshine" contest, donating to three non-profit organizations

Governance Achievements

• Established a Nominating and Corporate Governance Committee to oversee ESG

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Quantifying Scope 3 emissions

Mitigation Strategies

• Developing alternative sourcing strategies (e.g., partnership with POSCO)
• Working to expand GHG inventory to incorporate Scope 3 emissions

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Conflict Minerals Policy

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UN SDGs

Certifications: ISO 14001:2015 (in progress)

UN Sustainable Development Goals

• SDG 7
• SDG 9
• SDG 12
• SDG 13
• SDG 15

Array's solar tracker technology contributes to affordable and clean energy, industrial innovation, responsible consumption and production, climate action, and life on land.

Sustainable Products & Innovation

• DuraTrack HZ v3 solar tracker (designed for efficiency and recyclability)

Environmental Metrics

ESG Focus Areas

• Climate Strategy
• Energy Efficiency
• Safety
• Enterprise Diversity
• Board Diversity

Environmental Achievements

• Reduced direct emissions intensity by a significant amount (0.63 MT CO2e/$MM Revenue in 2022 vs. 3.2 MT CO2e/$MM Revenue baseline)
• Increased renewable energy consumption in operations to 22-26% through various initiatives (LED lights, cooler upgrades, efficient saw equipment)

Social Achievements

• Increased female representation within leadership team from 25% in 2021 to 27% in 2022
• Increased non-executive management racial and ethnic minority representation from 31% in 2021 to 34% in 2022
• Launched several initiatives to improve employee engagement and wellbeing (International Women’s Day events, Family Day, workshops on equality)

Governance Achievements

• Increased board female representation to 22% (meeting 2025 goal early)
• Established an ESG Executive Steering Committee and an ESG Working Group to enhance ESG oversight
• Strengthened various policy documents (Environmental Policy, Supplier Code of Conduct, Code of Business Conduct, Human Rights Policy) to reflect ESG commitments

Climate Goals & Targets

Environmental Challenges

• Increased Total Recordable Incident Rate (TRIR) in 2022 (3.95 vs. 2.18 in 2021), attributed to improved measurement and data collection
• Decrease in overall female workforce representation in 2022, attributed to the acquisition of STI Norland
• Scope 3 emissions accounting for over 99% of total emissions

Mitigation Strategies

• Hired a Health, Safety, and Environmental (HSE) Manager to drive safety improvements and implement prevention mechanisms
• Implementing programs to improve female representation and diversity, equity, and inclusion across the workforce
• Developed a targeted strategy to reduce Scope 3 emissions by engaging suppliers and identifying climate solutions, including developing Science-Based Targets (SBTi) by the end of 2023

Supply Chain Management

Supplier Audits: Regular supplier audits conducted by supplier quality engineers

Responsible Procurement

• Supplier Code of Conduct outlining environmental, social, and regulatory standards
• Partnership with Nucor to increase use of green steel

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UN SDGs

Certifications: ISO 9001:2015

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• 7
• 9
• 11
• 12
• 13
• 15

Initiatives contribute to these goals through various programs and partnerships

Sustainable Products & Innovation

• DuraTrack® and Array STI H250 solar trackers

Awards & Recognition

• MSCI A rating
• Sustainalytics Low Risk rating
• ISS ESG Prime Status rating
• EcoVadis Bronze Medal
• Cleanie Awards Silver Winner

Environmental Metrics

ESG Focus Areas

• Energy Management
• Water Management
• Waste Management
• Workforce Diversity
• Governance

Environmental Achievements

• Reduced wood waste by 90%
• Increased recycled aluminum waste by 70%
• Increased recycled steel waste by 120%
• Reduced electricity consumption by 11%

Social Achievements

• Reduced total annual employee turnover by 33%
• Reduced total recordable incident rate (TRIR) by 27%

Governance Achievements

• No incidents of non-compliance concerning product and service information and labeling
• No incidents of non-compliance concerning marketing communications
• No substantiated complaints concerning breaches of customer privacy and losses of customer data
• No monetary losses as a result of legal proceedings associated with product safety
• No monetary losses as a result of legal proceedings associated with anticompetitive behavior regulations
• No monetary losses as a result of legal proceedings associated with bribery or corruption

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ISSB (formerly SASB), IFRS S2 Climate-Related Disclosures (formerly TCFD), GRI