Canadian Solar Releases 2023 Corporate Sustainability Report

Rhea-AI Summary

Canadian Solar has released its 2023 Sustainability Report, detailing notable ESG achievements. Key reductions include a 37% decrease in GHG emissions and energy use, 72% in water use, and 54% in waste intensity. The company targets 100% renewable energy for global operations by 2030. Ethical labor practices and supply chain integrity are maintained through UNGC principles and RBA audits. New ESG disclosures for subsidiaries e-STORAGE and Recurrent Energy were introduced, with the latter planning a 2025 standalone report. Diversity, equity, and inclusion efforts show women earning 95% of male counterparts. Canadian Solar received multiple ESG recognitions and continues participation in international initiatives.

Positive

• 37% reduction in GHG emissions in 2023.
• 37% reduction in energy use in 2023.
• 72% reduction in water use intensity in 2023.
• 54% reduction in waste intensity in 2023.
• Target to power all global operations with 100% renewable energy by 2030.
• Engages with RBA for VAP audits ensuring integrity in labor practices and supply chain.
• Expanded ESG disclosures for e-STORAGE and Recurrent Energy.
• Plans for a standalone ESG report from Recurrent Energy in 2025.
• Women earn 95% of what men earn at Canadian Solar, showing commitment to DE&I.
• Multiple ESG recognitions from agencies like ISS ESG, Environmental Finance, and EcoVadis.

Negative

• Gender pay gap where women earn 95% of what men earn, indicating room for improvement.
• Ongoing technology and operational advancements required to meet 2030 renewable energy target.

GUELPH, ON, May 31, 2024 /PRNewswire/ -- Canadian Solar Inc. (the "Company", or "Canadian Solar") (NASDAQ: CSIQ) today announced the release of its 2023 Sustainability Report. This report showcases the Company's ongoing progress and achievements in its environmental, social, and governance (ESG) initiatives.

The sustainability disclosures in this report are aligned with global standards set by the SASB (the Sustainability Accounting Standards Board) and the Global Reporting Initiative (GRI), with reference to the IFRS (the International Financial Reporting Standards) set by ISSB (International Sustainability Standards Board). The full report is available here.

Highlights of the report include the following:

• Significant reduction in the environmental impact of the Company's operations: In 2023, Canadian Solar achieved year-over-year reductions in GHG emissions, energy, water, and waste intensities of 37%, 37%, 72%, and 54%, respectively. The Company also advocates for a circular economy and follows the 3R principles of reduce, reuse, and recycle across its operations and businesses. Canadian Solar remains on track to achieve its target of powering all global operations with 100% renewable energy by 2030.
• Ethical labor practices both across the Company's own operations and within its supply chain: As a participant of the United Nations Global Compact (UNGC), Canadian Solar adheres to the UNGC's ten principles on human rights, labor practices, environmental protection, and business ethics. To ensure the integrity of its operations and supply chain, the Company also engages with the Responsible Business Alliance (RBA) to conduct Validated Assessment Program (VAP) audits at its facilities and those of its suppliers. The RBA VAP audit is an industry-leading standard for on-site manufacturing evaluations, assessing labor practices, health and safety, environment, ethics, and management systems.
• Expanded disclosures and enhanced transparency: Canadian Solar introduced new disclosures highlighting the ESG strategies and practices of its subsidiaries, e-STORAGE and Recurrent Energy. By including key environmental metrics of e-STORAGE, the Company recognizes the crucial role battery energy storage plays in integrating renewable energy sources into the power grid, increasing global clean energy adoption. Meanwhile, Recurrent Energy is developing its own ESG program and plans to publish a standalone ESG report in 2025 based on 2024 data.
• Active promotion of diversity, equity, and inclusion (DE&I): Canadian Solar promotes DE&I to cultivate a productive workforce that provides diverse perspectives in decision-making processes. The Company advocates for equal pay and strives to ensure women receive equal compensation to men. In 2023, a gender pay analysis revealed that women at Canadian Solar earned 95% of what men earned, with the 5% gap deemed equitable.
• Exceptional external ESG recognitions and continued participation in international ESG initiatives: Canadian Solar has received numerous ESG ratings and awards from leading agencies worldwide, including ISS ESG, Environmental Finance, EcoVadis, the UNEF, Achilles, and Ernst & Young (EY). The Company has joined the Solar Stewardship Initiative (SSI) and will continue to participate in the UNGC and Carbon Disclosure Project's (CDP) Climate Change Questionnaire in 2024. The Company is also developing its science-based climate targets in alignment with the Science Based Targets initiative (SBTi).

Ms. Hanbing Zhang, Chief Sustainability Officer, commented, "We are delighted to share our 2023 ESG report, which documents our ongoing journey and the incredible progress we have made as a clean energy company dedicated to sustainable practices. Despite significant production increases, we remain fully on track to meet our sustainability goals and targets, thanks to our ongoing technological and operational advancements. As we move forward, our focus remains on intensifying our ESG initiatives, leveraging innovative technologies, and further advancing our sustainability strategy."

Dr. Shawn Qu, Chairman and CEO of Canadian Solar, added, "I am proud of our team's accomplishments since we revamped our ESG strategy four years ago. As a clean energy company, we contribute to global decarbonization efforts. At Canadian Solar, we conduct business ethically; champion diversity, equity, and inclusion; and are committed to maintaining a responsible supply chain. Our culture and the collective efforts of our people form the foundation to our success. We will continue our ethical and sustainable practices and create value for our stakeholders."

About Canadian Solar Inc.
Canadian Solar was founded in 2001 in Canada and is one of the world's largest solar technology and renewable energy companies. It is a leading manufacturer of solar photovoltaic modules, provider of solar energy and battery energy storage solutions, and developer of utility-scale solar power and battery energy storage projects with a geographically diversified pipeline in various stages of development. Over the past 23 years, Canadian Solar has successfully delivered over 125 GW of premium-quality, solar photovoltaic modules to customers across the world. Likewise, since entering the project development business in 2010, Canadian Solar has developed, built, and connected over 10 GWp of solar power projects and 3.3 GWh of battery energy storage projects across the world. Currently, the Company has over 1.2 GWp of solar power projects in operation, 6.5 GWp of projects under construction or in backlog (late-stage), and an additional 19.8 GWp of projects in advanced and early-stage pipeline. In addition, the Company has 600 MWh of battery energy storage projects in operation and a total battery energy storage project development pipeline of around 56 GWh, including approximately 4.3 GWh under construction or in backlog, and an additional 51.6 GWh at advanced and early-stage development. Canadian Solar is one of the most bankable companies in the solar and renewable energy industry, having been publicly listed on the NASDAQ since 2006. For additional information about the Company, follow Canadian Solar on LinkedIn or visit www.canadiansolar.com.

Safe Harbor/Forward-Looking Statements

Certain statements in this press release are forward-looking statements that involve a number of risks and uncertainties that could cause actual results to differ materially. These statements are made under the "Safe Harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by such terms as "believes," "expects," "anticipates," "intends," "estimates," the negative of these terms, or other comparable terminology. Factors that could cause actual results to differ include general business, regulatory and economic conditions and the state of the solar and battery storage market and industry; geopolitical tensions and conflicts, including impasses, sanctions and export controls; volatility, uncertainty, delays and disruptions related to the COVID-19 pandemic; supply chain disruptions; governmental support for the deployment of solar power; future available supplies of high-purity silicon; demand for end-use products by consumers and inventory levels of such products in the supply chain; changes in demand from significant customers; changes in demand from major markets, such as Japan, the U.S., China, Brazil and Europe; changes in effective tax rates; changes in customer order patterns; changes in product mix; changes in corporate responsibility, especially environmental, social and governance ("ESG") requirements; capacity utilization; level of competition; pricing pressure and declines in or failure to timely adjust average selling prices; delays in new product introduction; delays in utility-scale project approval process; delays in utility-scale project construction; delays in the completion of project sales; continued success in technological innovations and delivery of products with the features that customers demand; shortage in supply of materials or capacity requirements; availability of financing; exchange and inflation rate fluctuations; litigation and other risks as described in Canadian Solar's filings with the Securities and Exchange Commission, including its annual report on Form 20-F filed on April 26, 2024. Although Canadian Solar and Recurrent Energy believe that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, level of activity, performance, or achievements. Investors should not place undue reliance on these forward-looking statements. All information provided in this press release is as of today's date, unless otherwise stated, and Canadian Solar and Recurrent Energy undertake no duty to update such information, except as required under applicable law.

Canadian Solar Inc. Investor Relations Contact 
Wina Huang
Investor Relations
Canadian Solar Inc.
investor@canadiansolar.com  

View original content:https://www.prnewswire.com/news-releases/canadian-solar-releases-2023-corporate-sustainability-report-302160531.html

SOURCE Canadian Solar Inc.

FAQ

What are the key ESG achievements reported by Canadian Solar in 2023?

Canadian Solar reported reductions of 37% in GHG emissions and energy use, 72% in water use, and 54% in waste intensity.

What is Canadian Solar's target for renewable energy by 2030?

Canadian Solar aims to power all global operations with 100% renewable energy by 2030.

How does Canadian Solar ensure ethical labor practices?

Canadian Solar adheres to UNGC principles and conducts RBA Validated Assessment Program audits for ethical labor practices.

What new ESG disclosures did Canadian Solar introduce?

Canadian Solar introduced new ESG disclosures for its subsidiaries e-STORAGE and Recurrent Energy.

When will Recurrent Energy publish its standalone ESG report?

Recurrent Energy plans to publish a standalone ESG report in 2025 based on 2024 data.

What is the gender pay gap at Canadian Solar?

In 2023, women at Canadian Solar earned 95% of what men earned.

What ESG recognitions has Canadian Solar received?

Canadian Solar received ESG recognitions from ISS ESG, Environmental Finance, EcoVadis, UNEF, Achilles, and Ernst & Young.