2020 ESG Sustainability Report

Forward-Looking Statements This report has been prepared by the Company solely to facilitate the understanding of the Company’s performance and strategies on sustainability-related topics. The information contained in this report has not been independently verified. None of the Company or any of its affiliates, advisers or representatives will be liable (in negligence or otherwise) for any loss howsoever arising from any use of this report or its contents or otherwise arising in connection with the report. Certain statements in this report 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. Although we believe our expectations expressed in such forward-looking statements are reasonable, we cannot assure you that they will be realized, and therefore we refer you to a more detailed discussion of the risks and uncertainties contained in the Company’s annual report on Form 20-F as well as other documents filed with the Securities & Exchange Commission. In addition, all information provided in this report, including these forward-looking statements, is as of the current date, unless otherwise stated, and the Company undertakes no duty to update such information, except as required under applicable law.

Message from the Chief Executive and Chief Sustainability Officers

The coronavirus pandemic has served as a sobering reminder of our fragile connection with the environment and underscored the vital importance of the work we do. Importantly, it has helped crystallize the case for sustainable development. During this crisis, our priority has been to ensure the health and safety of our employees and support our business partners. As we worked to address urgent matters, such as establishing safety protocols and procuring personal protective equipment for our employees, we also took the time to listen to our customers, investors, financial partners, employees and other stakeholders, and reflect upon the really important matters that will shape our long-term role in society and legacy of our company.

About Canadian Solar 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 solar photovoltaic module brand, provider of solar energy and battery storage solutions, and developer of utility-scale solar power and battery storage projects with a geographically diversified pipeline in various stages of development. Over the past 20 years, Canadian Solar has successfully delivered over 55 GW of premium-quality, solar photovoltaic modules to customers across the world. Likewise, since entering the solar project development business in 2010, Canadian Solar has developed, built and connected over 5.7 GWp in over 20 countries across the world. Currently, the Company has around 500 MWp of projects in
operation, nearly 6 GWp of projects under construction or in backlog (late-stage), and an additional 15
GWp of projects in pipeline (mid- to early- stage). Additionally, Canadian Solar has 1.2 GWh of battery storage projects under construction, and nearly 17 GWh of battery storage projects in backlog or pipeline. Canadian Solar is one of the most bankable companies in the solar and renewable energy industry, having been publicly listed on the NASDAQ as CSIQ since 2006.

Market leader in solar energy with a global footprint in project development and module manufacturing and sales

Compliance with Environmental Regulations We closely monitor various legal frameworks where our business is active to ensure that our products comply with environmental regulations and customers’ requirements.

Our product lines comply with the European Union’s REACH (Registration, Evaluation, Authorization, and Restriction) regulation for chemicals according to the directive (EC) No. 1907/2006 issued by the European Chemical Agency (ECHA) in 2015. Our products are “articles” as defined by the REACH directive and do not release any chemical substances under normal or reasonably foreseeable conditions of use. We conduct regular audits and spot compliance evaluations across our supply chain, and communicate and educate our key suppliers on any updates regarding Substances of Very High Concern (SVHC) by ECHA in a timely manner. We report to the Substances of Concern In articles or Products (SCIP) database any SVHC in our products with concentration over 0.1% by weight according to the requirements of the latest Waste Framework Directive (WFD) 2008/98/EC amendment. Our system solutions product lines, including string inverters, also comply with the European Union’s RoHS (Restriction of Hazardous Substances) Directive 2011/65/EU and its amendments.2 Our photovoltaic modules are exempted from CLP (Classification, Labelling, and Packaging of substances and mixtures) regulation according to (EC) No. 1272/2008.

Greenhouse Gas Emissions All Canadian Solar’s global manufacturing operations have been re-assessed under the latest ISO14064-1:2018 standard, namely the Specification with Guidance at the Organization Level for Quantification and Reporting of Greenhouse Gas Emissions and Removals.

In 2020, we engaged Société Générale de Surveillance (SGS), a global inspection, verification, testing and certification services company, to help us establish a new and more robust GHG emissions monitoring and reporting management process. All our global manufacturing operations have been re-assessed under the new process and are compliant with the latest ISO14064-1:2018 standard, namely the Specification with Guidance at the Organization Level for Quantification and Reporting of Greenhouse Gas Emissions and Removals.

In Australia, Canadian Solar has partnered with Reclaim PV Recycling (link) for our solar module end-of-life management activities. Over the past three years, we have sent approximately 6,000 module pieces or 108 tons to Reclaim PV Recycling. The aluminum frames are disassembled and sold to aluminum recycling companies, and the remaining module parts are broken down into parts using thermal deconstruction. The recovered components are sorted and delivered to relevant materials companies for reuse or safe disposal. In South Korea, Canadian Solar sent 3,500 pieces of end-of-life modules, or nearly 90 tons, to KG Green Environment for end-of-life management in 2020. As an industry leader and most bankable module brand7 , we produce high quality solar modules that are backed by 25-year performance warranties for single glass modules and 30 years for double glass modules. Even after warranties have expired, the vast majority of solar modules continue to function for many more years but with lower power output, typically around 85% of the nameplate capacity. In addition, these modules can be refurbished and reused for markets and applications that do not require ultra-high power output, including off-grid PV applications and rural electrification programs.

Working at Canadian Solar As of December 31, 2020, we had 13,969 employees, including 12,774 full-time employees and 1,195 trainees and other part-time employees. Of this, 13,444 worked for CSI Solar and 525 worked for the Company’s Global Energy business.

Equity, Diversity and Inclusion
We strive to create a culture of equity, diversity and inclusion. The creativity and innovative drive of our
globally diverse workforce has been at the heart of our long-term success. Best practices that have emerged locally have been implemented globally, catalyzing improvements across our operating activities, from manufacturing to sales and project development. Canadian Solar is an equal opportunity employer (link). We do not tolerate discrimination of any kind,
including but not limited to race, color, ethnicity, gender, religion, political or other opinion, sexual
orientation, gender identity or expression, age, disability status, and other distinguishing characteristics.
We hire, promote and reward based on qualifications, experience, development potential and performance. Likewise, we follow the employment laws and regulations of the jurisdictions in which we operate.

Occupational Health and Safety Our Environmental Management System ISO14001 and Occupational Health and Safety System ISO45001 both cover chemical and operating equipment safety management to ensure hazards in the workplace are systematically identified and evaluated, and relevant control measures are put in place. At Canadian Solar, safety is our top priority. We have implemented rigorous safety policies and procedures, and as a result, we have maintained a low rate of safety-related incidents. In 2020, our recordable injury rate was 0.845 occurrences per million working hours.

Responsible Supply Chain Our majority-owned manufacturing subsidiary, CSI Solar, depends on its ability to obtain a stable and cost-effective supply of polysilicon, ingots, wafers, cells, and other materials. Over the years, we have entered into long-term supply agreements with various suppliers to secure a stable supply of raw materials to meet our production requirements. Our Global Energy business uses centralized procurement strategies to ensure the supply, quality, consistency and cost-effectiveness of components for solar projects we develop across the world. We have developed strong management systems for global procurement of solar modules, inverters, transformers, single-axis trackers, and other key equipment. The focus of Global Energy’s procurement strategy relies on developing relationships with key equipment manufacturers and the business procures for global projects at scale to support its global portfolio. This enables Global Energy to ensure the stability of supply, innovation, quality control, and economies of scale which maximizes the performance and competitiveness of our projects.


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