Climate Change Data

Environmental Metrics

ESG Focus Areas

• Affordable and Clean Energy
• Responsible employer
• Sustainable procurement
• Resource-efficient production
• Occupational health and safety
• Fair competition
• Corruption prevention
• Compliance
• Customer health and safety
• Product and service information

Environmental Achievements

• Reduced resource use (Indium tin oxide coating by 25%) and energy efficiency at its Hohenstein-Ernstthal site.
• Switched to recycled paper towels and toilet paper, avoiding roughly 940 kg CO2.

Social Achievements

• Successful launch of Alpha modules, attracting attention in the industry.
• Implemented web-based compliance training for all employees regarding cybersecurity and insider trading.
• Strengthened intellectual property (IP) management.
• 3,680 hours invested in training and education at Hohenstein-Ernstthal.

Governance Achievements

• Realignment of the Board of Directors and Executive Board to align with company size and structure.
• Enhanced Remuneration Report with additional transparency.

Climate Goals & Targets

Environmental Challenges

• Difficult market environment due to increasingly strong Chinese competition and the Chinese government’s goals set out in the “Made in China 2025” strategic plan.
• Inadequate margins in the PERC technology equipment segment due to intense Chinese competition.
• Restructuring process in Thun leading to employee headcount reduction.
• Negative cash flow from operations and net loss.

Mitigation Strategies

• Strategic realignment focusing on heterojunction/SmartWire technologies and perovskite cell technology.
• Divestment of non-core businesses, reducing fixed cost base and boosting efficiency.
• Concentration of PV business activities and production at Hohenstein-Ernstthal site.
• Measures to improve capital basis and liquidity.

Supply Chain Management

Supplier Audits: Self-declaring supplier questionnaire evaluating implementation of ISO 9001, ISO 14001, OHSAS 18001, and SA8000 standards.

Responsible Procurement

• Sustainability and corporate responsibility clauses included in contracts.
• Preference for local suppliers whenever possible.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: ISO 9001 (Hohenstein-Ernstthal), ISO 50001 (Hohenstein-Ernstthal)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 7: Affordable and Clean Energy

Meyer Burger's technologies directly support SDG 7.

Sustainable Products & Innovation

• High-efficiency heterojunction/SmartWire solar modules

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate and energy
• Sustainable economic performance
• Sustainable supply chain
• Employee satisfaction
• Innovation in production process

Environmental Achievements

• Supplied all modern production plants with electricity from 100 percent renewable energies since 2021
• Reduced environmental footprint thanks to short transport routes between sites and reduced energy requirements in production processes
• Recycled 340 tons of waste in 2021
• Completely eliminated toxic heavy metal lead in module manufacturing
• Reduced resource use in indium tin oxide (ITO) coating by 25 percent
• Continuously minimized silver use thanks to technological improvements

Social Achievements

• Opened two new manufacturing sites with almost 500 new employees
• Established a 5-shift working model with reduced working hours (35 hours/week) at new production sites
• Invested approximately 1,878 hours in training and education in 2021
• Implemented regular company-wide online meetings to keep employees informed
• Increased use of employee app "MBLive"

Governance Achievements

• Appointed a Chief Sustainability Officer (CSO)
• Implemented an innovative CO2 control system to monitor emissions
• Strengthened Intellectual Property (IP) management with employee training and a new validation process
• No cases of discrimination reported in 2021
• No legal proceedings for anti-competitive conduct or corruption in 2021

Climate Goals & Targets

Environmental Challenges

• Uncertainties of global supply chains
• Increase in competition in the PV market
• Potential risks within the supply chain due to dependence on Asian suppliers
• Increase in fluctuation of employees due to business model change and operational changes
• Military conflict in Ukraine impacting raw material control and supply chains

Mitigation Strategies

• Focusing on building a more local supply chain and increasing diversification amongst suppliers
• Aiming at operating at a sustainable cost and margin structure
• Regular analysis of the company’s environment to adapt to changes in competition
• Determined to provide a stable work environment during the period of change
• Considering inter-European train transportation solutions to reduce CO2 emissions

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Sourcing from local manufacturers and suppliers wherever possible, supplemented by European and global suppliers
• Guarantees from wafer suppliers on sustainable polysilicon sources and no raw materials from Xinjiang
• Contracts include environmental and corporate responsibility clauses

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 7 (Affordable and clean energy)
• SDG 8 (Decent work and economic growth)
• SDG 9 (Industry, innovation, and infrastructure)
• SDG 11 (Sustainable cities and communities)
• SDG 12 (Responsible consumption and production)
• SDG 13 (Climate action)
• SDG 17 (Partnerships for the goals)

Producing cost-effective solar energy cells and modules; promoting sustainable economic growth and productive employment; innovating in the PV industry; addressing sustainable cities and communities; implementing cost-effective and energy-efficient production; contributing to climate action; engaging in partnerships in the solar industry

Sustainable Products & Innovation

• Lead-free solar modules; HJT/SWCT technology

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Renewable Energy
• Diversity & Inclusion
• Supply Chain Sustainability
• Governance

Environmental Achievements

• Reduced emissions through local production in Germany and advanced technologies to minimize energy usage.
• Switched to 100% renewable energy at cell and module production sites (except for liquid gas in Hohenstein-Ernstthal).
• Increased module efficiency by several Watt peak (Wp) in 2022.
• Increased production volume to 321 MWp in 2022.
• Extremely low landfill rate for waste compared to total material used.
• Reduced hazardous waste.

Social Achievements

• Re-established the solar industry in Europe, creating jobs in structurally weak regions.
• Increased diversity and intercultural acceptance in the workplace.
• Established a new works council in Bitterfeld-Wolfen and a group works council.
• Improved infrastructure in weak regions through partnerships with local universities and institutions.
• 394 new employees hired in 2022; turnover rate of 7.6%.

Governance Achievements

• Implemented a Code of Conduct, binding on all subsidiaries and employees.
• Appointed a Chief Sustainability Officer.
• Established a culture of inclusion and fairness in the workplace.
• Engaged in public policy at regional, national, and European levels (without political donations).

Climate Goals & Targets

Environmental Challenges

• CO2e emissions from PV module and component production.
• Limited availability of materials in Europe, necessitating transport from Asia.
• Supply chain disruptions due to climate events and pandemics.
• Shortage of skilled workers.
• Potential negative social impacts from subcontractors of suppliers violating human rights.

Mitigation Strategies

• Developing a CO2 accounting system to identify and reduce emissions.
• Shortening supply routes and creating more local job opportunities.
• Strengthening process controls.
• Widespread recruitment activities and training programs.
• Implementing a Supplier Code of Conduct and conducting supplier audits.

Supply Chain Management

Supplier Audits: A few suppliers audited by the end of 2022

Responsible Procurement

• Supplier Code of Conduct
• Screening of new suppliers based on social and environmental criteria

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards: Core Option (GRI 102-54)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 7 (Affordable and Clean Energy)
• SDG 8 (Decent Work and Economic Growth)
• SDG 9 (Industry, Innovation & Infrastructure)
• SDG 11 (Sustainable Cities and Communities)
• SDG 12 (Responsible Consumption & Production)
• SDG 13 (Climate Action)
• SDG 17 (Partnerships for the Goals)

Meyer Burger's activities contribute to these SDGs through renewable energy production, job creation, sustainable manufacturing practices, and partnerships.

Sustainable Products & Innovation

• High-efficiency HJT and Smart Wire Technology solar modules; bifacial Glass-Glass modules for agri-photovoltaics.

Environmental Metrics

ESG Focus Areas

• Climate Change
• Circular Economy and Resource Efficiency
• Biodiversity
• Water Resources
• Environmental Pollution
• Employment Practices
• Non-Discrimination and Equal Opportunity
• Occupational Health and Safety
• Freedom of Association and Collective Bargaining
• Supply Chain Traceability
• Forced Labor and Modern Slavery
• Economic Impacts
• Public Policy

Environmental Achievements

• Reduced carbon emissions in Scope 1 from 327 to 305 tons of CO2e between 2022 and 2023. Achieved a 37% reduction in the global footprint for the glass-glass module compared to the Chinese PERC standard module.
• Achieved zero landfill rate for waste in 2023.
• Used 100% recycled cardboard for packaging.
• Reduced consumption of silicon wafers, silver, glass, and water.
• Increased cell and module efficiency.
• Reduced waste in foils.
• Enhanced cell and module yields.
• Implemented CO2 accounting at the module level.
• Reduced the use of backsheet foil by producing glass-glass modules.
• ISO 50001 Energy Management certification for facilities in Hohenstein-Ernstthal, Thalheim, and Freiberg.

Social Achievements

• Created substantial number of jobs spearheading the revival of the European solar industry.
• Created employment opportunities in economically challenged areas.
• Advanced vocational education and professional development through targeted on-the-job training programs.
• Fostered diversity and enhanced intercultural skills in the workplace.
• Launched an employee beekeeping program, producing 40 kilograms of honey.
• Low employee turnover rate of 5.6%.

Governance Achievements

• Implemented a whistleblower protection system.
• Conducted annual self-assessment to evaluate the company’s impact on the economy, environment, and people.
• Implemented the Trustnet software for active risk analysis and compliance with the German Supply Chain Due Diligence Act (LkSG).
• Established a comprehensive Supplier Code of Conduct.
• Implemented a mandatory Supplier Code of Conduct with higher ethical and sustainability requirements for all active suppliers.

Climate Goals & Targets

Environmental Challenges

• Dumping prices from Chinese suppliers in Europe, coupled with a sharp rise in Chinese production overcapacity and a lack of market protection, led to unprecedented distortions in the European solar market.
• Underutilization of production capacity in Germany.
• Impairment losses on production materials and finished products.
• Costs for operating production facilities in Germany and further expansion in the USA.
• High price pressure due to large supply of modules on the European market.
• High dependency on Chinese and Asian suppliers for key raw materials.
• Intense competition from Asian manufacturers of solar modules and cells.
• Language barriers in production processes.
• Limited female representation in leadership positions.
• Challenges in verifying suppliers’ working conditions, especially in distant regions.

Mitigation Strategies

• Shifting business focus to the USA.
• Building a solar cell factory in Colorado Springs and expanding module production in Goodyear, Arizona.
• Preparing for the closure of its Freiberg site in Germany.
• Halting module production at the Freiberg site.
• Continuing solar cell production in Thalheim to support the ramp-up of module production in the USA.
• Pursuing a multi-layered financing strategy including a capital increase, export agency credit guarantee, 45X tax credit financing, and a DOE guaranteed loan.
• Strengthening the resilience and stability of its supply chains for direct materials (e.g., contract with a Norwegian silicon wafer producer).
• Diversifying its supply chain and reducing dependency on single regions.
• Implementing the Trustnet software for supply chain due diligence.
• Implementing a comprehensive Supplier Code of Conduct.
• Conducting on-site supplier audits.
• Exploring solutions to enhance language support and cultural integration for employees.
• Actively exploring proactive steps to further enhance female representation in leadership.

Supply Chain Management

Supplier Audits: Increased number of on-site audits in 2023.

Responsible Procurement

• Supplier Code of Conduct
• Know Your Business (KYB) software
• Focus on local and European sourcing

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards: Core Option (GRI 102-54)

Certifications: EN ISO 50001 (Energy Management)

Third-party Assurance: PricewaterhouseCoopers AG

UN Sustainable Development Goals

• Goal 5 (Gender equality)
• Goal 6 (Clean water and sanitation)
• Goal 7 (Affordable and clean energy)
• Goal 8 (Decent work and economic growth)
• Goal 9 (Industry, innovation, and infrastructure)
• Goal 10 (Reduced inequalities)
• Goal 11 (Sustainable cities and communities)
• Goal 12 (Responsible consumption and production)
• Goal 13 (Climate action)
• Goal 17 (Partnerships for the goals)

Meyer Burger's initiatives contribute to these goals through renewable energy production, job creation, sustainable practices, and stakeholder engagement.

Sustainable Products & Innovation

• High-efficiency heterojunction/SmartWire technology modules
• Glass-glass modules
• Bifacial PV modules for agri-photovoltaic use

Awards & Recognition

• Not disclosed