Sustainability Report
2020

CONTENTS

Sustainability Report 2020

INTRO

INTRODUCTIONENVIRONMENTAL

SOCIAL

GOVERNANCE

03 Letters from the 							Leadership

20 Spotlight: Towards Circularity, 				Measuring Our Impact

43 Spotlight: Responding to 					 COVID-19

08 About this Report

22 Our Environmental 						Responsibility: An Overview

46 Social Stewardship:		An Overview

66
		
		
		

09 About Maxeon Solar 						Technologies
12 Sustainability Approach 					
and Governance

24 Energy and Emissions

47 Occupational Health and Safety

69 Governance Approach:		An Overview

30 Water Management

50 Fair Labour and Human Rights

70 Business Integrity and Ethics

33 Waste

54 Employee Engagement

74 Product Quality, Reliability
		and Safety

15 Our Commitment to the SDGs
37 Circular Economy

56 Learning and Development

16 Materiality Assessment Process
19 Key Highlights of 2020

42 Performance Metrics 				
		GOVERNANCE

58 Diversity and Inclusion

65 Performance Metrics© 2021 Maxeon Solar Technologies

SOCIAL78 Sustainable Innovation

61 Community Investment2

Spotlight: Power to Spare –How Our Solar Panels 			Contribute to EnergyPositive Buildings

ENVIRONMENTAL

82 Customer Engagement 					
and Satisfaction

APPENDIXINTRODUCTION

Letter from Jeff Waters, Chief Executive Officer, andKevin Kennedy, Chairman of the Board of Directors
We face a very challenging world today on many fronts. In

In doing so, we officially begin our own sustainability journey

2020, the COVID-19 outbreak took an enormous humanand establish Maxeon's role as a key contributor to thetoll around the globe. At the same time, lockdowns in manyenvironment, our people and the communities where we live

countries caused devastating economic effects. In the recent

and work.

United Nations' Sustainable Development Goals Report 2020,
the UN Secretary General noted that the ongoing COVID-19
pandemic is threatening lives and livelihoods, and making
the achievement of the Global Goals even more challenging.
Despite all of this, at Maxeon we remain hopeful as vaccine
programmes in many countries are rolling out, and we look

To demonstrate our commitment to sustainability, Maxeon
joined the United Nations Global Compact, the world's largest
corporate sustainability initiative, within months of launchingas an independent company. We are eager to play a role insupporting the ‘Decade of Decisive Action,’ aimed at achieving

forward to a ‘new normal’ of building back better.

the Sustainable Development Goals (SDGs) by 2030. We are

In August 2020, Maxeon Solar Technologies completed theand governance (ESG) goals and initiatives into our executive

spin-off from SunPower Corporation, and both companies

and employee compensation plans, thus demonstrating ourare now independent entities in their own right. At Maxeon,organisation-wide commitment to sustainability.

our products are powering the fight against climatechange in more than 100 countries. We are excited toissue our inaugural Sustainability Report in our first year of
independent operations.
3© 2021 Maxeon Solar Technologies

pleased to share that we have integrated environmental, social

INTRODUCTION

Letter from Jeff Waters, Chief Executive Officer, andKevin Kennedy, Chairman of the Board of Directors
continued

According to the World Economic Forum Global Risks Report
2021, environmental risks continue to threaten and areexacerbated by the ongoing pandemic crisis. As a solar
company, we believe that all of us have a part to play in thefight against climate change, and we do so best throughour business and products – as expressed by our company
purpose of Powering Positive Change™. One example ofbalancing environmental sustainability efforts while keeping
our people safe is Maxeon’s programme to collect, deliver,
repair, decontaminate and package used Personal Protective
Equipment (PPE) from our employees in our Philippines factory.
This effort resulted in a marked decrease in single-use PPE
waste, as we reused them in a safe and sanitary manner.
We are committed to being responsible corporate citizens,
as we believe this is key for any business to earn theirsocial license to operate in the communities where they
conduct business.
4© 2021 Maxeon Solar Technologies

To support the wider community, we participated in fundraisingand donated aprons and smocks, face shields and shoe covers
to frontline healthcare workers at Melaka General Hospitalin Malaysia. Additionally, we believe that the Occupational
Health and Safety (OHS) of our employees and contractors
are paramount. This belief is embedded in every activity fromthe design stage, day-to-day operations, communications andengagement and review stage as part of our Plan-Do-Check-Act
and Continual Improvement Process. For our efforts, we arepleased to have achieved an industry-leading Total Recordable
Incidence Rate of 0.63. That said, any recordable rate above
zero is unacceptable, and we will continue to strive for
perfection. Furthermore, we believe in diversity and inclusion in
our workforce and the communities we serve as demonstrated
in our hiring statement, which stipulates that employment
decisions are made on merit. Our commitment is also reflectedin our zero-tolerance policy towards all forms of discriminationand harassment in the workplace.

INTRODUCTION

Letter from Jeff Waters, Chief Executive Officer, andKevin Kennedy, Chairman of the Board of Directors
continued

Lastly, we uphold a culture of integrity informed by our core values and cultivated by a shared set of behaviours. As our core values
remind us, “We hold ourselves to a higher standard,” with each of us being responsible for doing the right thing and operating withthe utmost ethical integrity. This is the foundation of how we do business with our customers, partners, vendors and suppliers.
We are excited to chart this sustainability path together, and will continue to rely on the commitment of our staff and valued
partners to make this journey. On behalf of the Board of Directors and Executive Leadership Team of Maxeon Solar Technologies,
we are grateful for your strong support and we look forward to engaging and partnering you to achieve our collective
goals together.

Jeff Waters

Kevin Kennedy

Chief Executive Officer

Chairman of the Board of Directors

5© 2021 Maxeon Solar Technologies

INTRODUCTION

Letter from Lindsey Wiedmann, Chief Legal Officer,
Global ESG Executive Leader
Powering Positive Change is the core of what we do at Maxeon Solar Technologies, and we are delighted to showcase oursustainability programme in our first full year of independent operations with the launch of this Sustainability Report.
I began working in renewables more than 17 years ago because the threat of climate change was something I could not ignore. The
solar industry is a critical part of the solution and we must continue to push the boundaries of innovation to deploy more and more
solar around the world. At Maxeon Solar Technologies, we also believe that in fighting climate change, we have a responsibility to our
future generations to do so in a sustainable way.
Sustainability is a journey. And to begin our journey at Maxeon, we have bolstered our internal and external resources to champion
ESG alongside our passionate employees and have leveraged the best corporate sustainability practices to formulate our strategy
and identify the issues we can contribute to most.
In establishing our programme and to support progress towards achieving the principles that comprise our commitment as a United
Nations Global Compact Signatory, we conducted a prioritisation exercise to identify the UN Sustainable Development Goals (SDGs)
where we can scale the most impact in our business. We challenged ourselves to adopt goals that expand beyond our primarybusiness of providing access to renewable energy around the globe. As a result, we have committed to four SDGs (see right).
As the Executive Leader of our newly established Global ESG team, I know that our company will be much more effective in achieving
our goals with the collective engagement across our organisation. We performed a materiality assessment, a formal and extensive
stakeholder engagement exercise, to prioritise the material topics in ESG that Maxeon will adopt to form the foundation of our6© 2021 Maxeon Solar Technologies

INTRODUCTION

Letter from Lindsey Wiedmann, Chief Legal Officer,
Global ESG Executive Leader
continued
holistic programme. It was important to hear and act on the views of our stakeholders, as their input leads to the creation of sharedvalue. This process is aligned to international sustainability standards and formulates our company sustainability focus areas froma new baseline. At the end of the exercise, 14 material topics now form the building blocks of our sustainability strategy. We share
our performance results on all of these topics in the Environmental, Social and Governance chapters of this report.
We are excited to launch this Sustainability Report, but this is definitely just the start. Over the next year, we will set time-based
goals around our material topics and will assess our performance in our next sustainability report. We will also continue to enhance
the scope and robustness of our data reporting across the ESG pillars, aligned to disclosure standards.
We will continue to engage internal and external stakeholders in our journey, both formally or informally, to refine our sustainability
strategy. This is an iterative process that we will continually refresh to ensure that our priorities are current and relevant.
I encourage you to join us in our sustainability endeavours.

Lindsey Wiedmann
Chief Legal Officer, Global ESG Executive Leader

7© 2021 Maxeon Solar Technologies

INTRODUCTION

About this Report

INTRO

Reporting Scope and Period

Reporting Standards

This is the first standalone annual Sustainability Report (this “Report”)

This Report has been prepared in accordance to the Global Reporting

published by Maxeon Solar Technologies, Ltd. (the “Company” orInitiative (“GRI”) Sustainability Reporting Standards, Core option, aligned“Maxeon”), (NASDAQ: MAXN).

to the Sustainability Accounting Standards Board (“SASB”), Singapore

This Report discusses Maxeon’s performance in the context of its
activities relating to environmental, social and governance (ESG)
considerations for the calendar year ended 31 December 2020(“2020”). Maxeon is reporting on an entire year, despite only separatingfrom SunPower Corporation in August 2020. Maxeon presents our
performance in the wider context of sustainability and includes
coverage of material ESG topics. Our aim is to use this Report to share
our commitment to sustainability with valued stakeholders, including

ENVIRONMENTAL

Exchange ("SGX") Sustainability Reporting requirement and the United
Nations Sustainable Development Goals (“SDGs” or “Global Goals”).
Click here for more information.

Publication Date

SOCIAL

This Report is published on 30 June 2021. A soft copy of the report canbe found online on our website.

employees, investors, customers, business partners, suppliers andFeedback

contractors, regulators and the communities where we operate.

Maxeon welcomes any questions or feedback on this Report. Our

GOVERNANCE

Global Environmental, Social and Governance (ESG) Lead can becontacted at esg@maxeon.com.
APPENDIX

8© 2021 Maxeon Solar Technologies

INTRODUCTION

About Maxeon Solar Technologies

INTRO

Headquartered in Singapore, Maxeon designs and manufactures
Maxeon® and SunPower® brand solar panels, and has sales operations
in more than 100 countries, operating under the SunPower brand in

ENVIRONMENTAL

certain countries outside the United States. The company is a leader
in solar innovation with access to over 1,000 patents and two best-inclass solar panel product lines. A Signatory to the UN Global Compact
and supporter of UN Global Goals, Maxeon is a forerunner in solar
sustainability with industry-first green credentials in panels and a fleet
of five LEED-certified facilities. With operations in Africa, Asia, Oceania,

SOCIAL

Europe and Mexico, Maxeon products span the global rooftop andsolar power plant markets through a network of more than 1,200
trusted partners and distributors. A pioneer in sustainable solar
manufacturing, Maxeon leverages a 35-year history in the solar industry
and numerous awards for its technology. Through our partners, weempower more than 367,000 customers to make a positive impact on
the world by transitioning to solar energy.

For more information on our business, you can refer to our website.

GOVERNANCE

APPENDIX

9© 2021 Maxeon Solar Technologies

INTRODUCTION

About Maxeon Solar Technologies

INTRO

We sell products under the SunPower brand into
100+ countries through a network of 1,200+ sales andinstallation partners.

ENVIRONMENTAL

SOCIAL

Global Sales & Installation Partners
500*

28

716

494

U.S. & Canada

Mexico &
LATAM

EMEA

Asia-Pacific

21%

6%

34%

39%

* Plus an additional 500+ U.S. Installers through our exclusive panel supply agreement with
US-based SunPower Corporation.

10© 2021 Maxeon Solar Technologies

GOVERNANCE

APPENDIXINTRODUCTION

About Maxeon Solar Technologies
A Leader in Solar Innovation
Maxeon offers a comprehensive panel portfolio ensuring maximum
flexibility to address all customers' energy needs across residential
solar, commercial solar and solar power plants. We have two bestin-class solar panel product lines: Maxeon line of interdigitated backcontact (“IBC”) solar cells and panels, and the Performance line ofshingled solar cells and panels. Our products are offered with anindustry-leading, 25-year power and performance warranty.

INTRO

FUNDAMENTALLY DIFFERENT,AND BETTER

MAKING THE CONVENTIONAL,
EXCEPTIONAL#1 Solar Panel Efficiency 1

Higher Efficiency at a Value Pricein the market, fitting more energy
in less space

Patented technology, G12 wafers, China JV#1 Lowest Degradation Rate

Enhanced Energy Yield

in the solar industry 2Less soiling/shading loss (row spacing),
bi-facial, greater power density

Leading Durability 2

Reliability Advantages in Harsh
Environmentswith a 40-year expected useful life 3

ENVIRONMENTAL

SOCIAL

Comprehensive warranty, top module
reliability performer4

1.

Based on search of data-sheet values from websites of top 20 manufacturers per IHS, as ofJanuary 20192.

As of 2018, Jordan, et al, “Robust PV Degradation Methodology Application” PVSC 2018 and“Compendium of Photovoltaic Degradation Rates” PiP 2016

3.

Performance panels expected useful life of 35 years. Source: “SunPower P-Series Technology
Technical Review,” Leidos Independent Engineer Report. 2016. SunPower Maxeon panels expected
useful life of 40 years. Source: “SunPower Module 40-Year Useful Life,” Useful life is 99 out of 100
panels operating at more than 70% of rated power

4.

SunPower Performance P19 panels identified as top performers in the 2018 DNV GL PV
Module Reliability Scorecard: https://www.dnvgl.com/publications/2018-pv-module-reliabilityscorecard-117982.

11© 2021 Maxeon Solar Technologies

Ultra-pure silicon on a patented
copper foundation

Patented, unique mono PERC shingled
cell panel design
GOVERNANCE

APPENDIXINTRODUCTION

Sustainability Approach and Governance
Our Approach to Sustainability

INTRO

OUR PURPOSE

As a leader in the solar industry, Maxeon believes thatsetting a high standard for the entire solar industry
is essential in the fight against climate change. We

Powering Positive
Change™

ENVIRONMENTAL

intend to make a meaningful and positive impact on
the environment, for the communities we serve, theenergy industry, our customers and beyond. Oursustainability approach is grounded in our purpose ofPowering Positive Change as expressed on the right.

OUR VALUES

We push theboundaries

We hold
ourselves to ahigher standard

We thrive
together

SOCIALOUR SUSTAINABILITY PILLARS

12© 2021 Maxeon Solar Technologies

GOVERNANCEENVIRONMENTAL

SOCIAL

GOVERNANCE

Creating positiveenvironmental impact tosustain our natural world
by investing in technologies
to combat climate change

Creating positive value insociety and communities
by leading, partnering andsupporting initiatives toenhance people’s lives

Creating positive economic
value and maintaining
ethics and integrity throughresponsible and transparent
business practices

APPENDIXINTRODUCTION

Sustainability Approach and GovernanceTop-down governance & bottom-up culture in driving ESG

Actively engaging stakeholders

Our ESG efforts and performance are governed by the Executive

Engaging with and understanding the needs of our stakeholders is

Leadership Team and overseen by the Nominating and Corporate

an essential part of our sustainability journey. We identify our key

Governance Committee (the “Committee”), consisting of two

stakeholders based on the impact our business has on them, and their

independent directors and two directors designated by ourroles in the business. In 2020, we conducted an extensive stakeholder

shareholders TotalEnergies and Tianjin Zhonghuan Semiconductor

engagement exercise involving both internal and external stakeholders.

(TZS). The Chief Legal Officer, who is also our Global ESG Executive

Through in-depth interviews and online surveys, we gathered insights

Leader, together with the Global ESG team, provides quarterlythat informed our materiality

updates and presentations to the Committee on our ongoingassessment. In addition, we also

initiatives, roadmap and macro ESG trends, opportunities and risks.

carried out an employee survey

We established a formal ESG function in our first quarter of
independent operations, with a dedicated resource hired in the
Singapore headquarters to lead the formulation of our approach,framework and efforts, together with the Legal team. We work acrossthe organisation to collectively execute our ESG programme and reportprogress. As we believe that ESG is a shared responsibility and tofurther incorporate sustainability into our company culture, ESG is oneof the six inaugural post-spin-off Corporate Key Results (KRs) identified
as critical to achieving our broader company goals.
13© 2021 Maxeon Solar Technologies

INTRO

ENVIRONMENTAL

SOCIALto understand perceptions
around the Maxeon brand, thevision and purpose. A synopsis
of our ongoing engagement

GOVERNANCE

with different stakeholders ispresented in the Materiality
Assessment Process section
and narrated across the othersections of this Report.

APPENDIXINTRODUCTION

Sustainability Approach and Governance

INTRO

ENVIRONMENTALNOT FOR PROFITPARTNERSINVESTORS• Investor and analyst
Platforms forEngagement

presentations• Annual general meetings• Quarterly reports• Press releases• Energy and Emissions• Fair Labour andStakeholder Priorities

Human Rights• Diversity and Inclusion• Business Integrity
and Ethics• Sustainable Innovation• Media• Press releases• Industry events• Regular emails• Energy and Emissions• Waste• Fair Labour andHuman Rights• Diversity and Inclusion• Community Investment• Business Integrity
and Ethics

REGULATORS AND
GOVERNING AGENCIESCUSTOMERSEMPLOYEES• Media• Press releases• Industry events• Regular meetings• Website• Regular meetings• Regular emails• Industry events• Energy and Emissions• Water Management• Waste• Occupational Health• Energy and Emissions• Water Management• Circular Economy• Fair Labour and• Energy and Emissions• Occupational Health• Circular Economy• Occupational Health• Fair Labour and• Fair Labour and• Fair Labour and• Diversity and Inclusion• Product Quality, Reliability• Employee Engagement• Learning and• Customer Engagement• Community Investment• Business Integrity

and calls

and Safety

Human Rights• Business Integrity
and Ethics• Product Quality, Reliability
and Safety

and calls• On-site visits, installationand maintenance

Human Rights

and Safety

and Satisfaction• Company Intranet• Emails• Regular Townhalls (AllHands Meetings)

and Safety

Human Rights

Development

and Ethics• Product Quality, Reliability
and Safety14© 2021 Maxeon Solar Technologies

SUPPLIERS• Questionnaires• Emails• Regular meetingsand calls

SOCIALand Safety

Human Rights• Business Integrity

GOVERNANCE

and Ethics• Sustainable Innovation
APPENDIXINTRODUCTION

Sustainability Approach and Governance
Our Commitment to the Sustainable Development Goals

With less than ten years left to meet the UN’s 2030 Agenda on
sustainable development, renewable energy will be a key engine
powering both Singapore’s and the world’s decarbonisation agenda.
At Global Compact Network Singapore, enabling businesses to

To demonstrate our deep commitment to sustainability, Maxeon madetransition smoothly to a low-carbon future through community andthe decision to join the United Nations Global Compact, the world’s

capacity building is a key priority. We warmly welcome Maxeon Solarlargest voluntary corporate sustainability initiative, last December, in
our first full quarter of operations as an independent company. Asa purpose-driven global organisation, we believe we can make thegreatest impact by joining the 12,000+ companies in 160 countries who
also believe that, together, we can make the world a better place. Aftera prioritisation, impact and relevance exercise across the business and

INTRO

ENVIRONMENTAL

Technologies to the United Nations Global Compact and look forward
to working alongside them to take decisive action for the SDGs.
Esther Chang
Executive Director, Global Compact Network Singapore

SOCIALwith our Executive Leadership team, Maxeon chose to focus on four key
UN SDGs to create sustainable and positive impact (see right).
These SDGs are consistent with our purpose of Powering Positive
ChangeTM. They are also linked to the Maxeon Values that make us who
we are, as a company and as a culture, and define what we stand for

GOVERNANCE

with our customers and investors. Uniting for a better world is partof everything we do, core to how and why we do it. These selected
SDGs will also be factored into our long-term target setting that we will
undertake later this year and announce in our next sustainability report.

15© 2021 Maxeon Solar Technologies

APPENDIXINTRODUCTION

Sustainability Approach and Governance

INTRO

Materiality Assessment Process
At Maxeon, we recognise that as a spin-off of SunPower and an
independent entity now headquartered in Singapore, we need to

ENVIRONMENTAL

formulate our own ESG approach to reflect our material impacts andto influence the decisions of our stakeholders.
Given the complexity and fast-changing nature of ESG issues today,
we aligned our materiality assessment to GRI and SASB international
SOCIALsustainability reporting standards as the basic premise to help us
structure our ESG programme. We also voluntarily comply with theSingapore Exchange (SGX) sustainability reporting requirement,
keeping in line with best practices where we are headquartered,although Maxeon is listed on the NASDAQ. Our intent is to be holistic
and centred around long-term goals aligned to our sustainability focus

GOVERNANCE

areas and emerging ESG issues and market needs.

Powerhouse Telemark leads the industry as an example of anenvironmentally sustainable building reducing its annual energy
consumption by 70% compared to similar new-construction offices.
16© 2021 Maxeon Solar Technologies

APPENDIXINTRODUCTION

Sustainability Approach and Governance

INTRO

To initiate our materiality assessment process,we engaged an independent consultant to help
us perform analyses across a broad spectrum of

ENVIRONMENTAL

influencers allowing us to identify the key topics thatare most relevant and impactful in the industry.
Next, we wanted to validate this universe of ESG issues

Macro ESG
Developments
and Trends

Sustainable
Development
Goals (SDGs)

ReportingStandards
and Rating
Agencies

through the insights of an array of key stakeholders,both internal and external, through a series ofPeer Analysis
and Industry
Benchmarking

GlobalThought
Leadershipand Academic
Research
SOCIAL

interviews (face-to-face and video) and surveys. Due tothe global nature of our operations, we sought a rangeof views across geographies and business units.

Internal and External Stakeholder Engagement Interviews
and Surveys

Board Inputs and Executive Leadership Team
Prioritisation and Validation Workshop

GOVERNANCE

APPENDIX

Finalised 14
Material Topics
17© 2021 Maxeon Solar Technologies

INTRODUCTION

Sustainability Approach and Governance

INTRO

Sustainable Innovation

Final Results: Maxeon’s Key Material Topics

Occupational Health and Safety

Through our materiality assessment interviews andFair Labour and Human Rights

Product Quality,
Reliability and Safetysurveys, we derived a wide array of quantitative
assessed and analysed. Our Executive Leadership
Team deliberated on these topics through a dedicatedmanagement workshop, which led to the validation,
finalisation and selection of Maxeon’s inaugural

ENVIRONMENTAL

Learning and Development

Significance of Impact

and qualitative inputs which were then aggregated,

Waste

Energy and Emissions

Business Integrity and Ethics

Employee Engagement
Circular Economy
Customer Engagement
and Satisfaction

material topics, ensuring both bottom-up inputs and

SOCIAL

Water Management

top-down validation.
Diversity and Inclusion

Through this process, we established what areconsidered to be the areas of greatest potential

Community Investment

impact on the environment, economy and society.

Influence on Decision Making

The materiality assessment resulted in 14 key material
topics, divided across the three pillars of ESG.

18

© 2021 Maxeon Solar Technologies

GOVERNANCEENVIRONMENTAL

SOCIAL

GOVERNANCE• Energy and Emissions• Water Management• Waste• Circular Economy• Occupational Health and Safety• Fair Labour and Human Rights• Employee Engagement• Learning and Development• Diversity and Inclusion• Community Investment• Business Integrity and Ethics• Product Quality, Reliability
and Safety• Sustainable Innovation• Customer Engagement
and Satisfaction

APPENDIXINTRODUCTION

Key Highlights of 2020

INTRO

OVERALLENVIRONMENTAL

SOCIAL

GOVERNANCE• Joined United Nations Global
Compact in first quarter of
independent operations andcommitted to the SDGs

• Maxeon solar panels are
Cradle to Cradle Certified andachieved Declare Label• Supported the community
with close to USD $70,000 of
total community grants anddonations and more than
190 volunteers• Zero incidents of bribery,corruption or otherethical issues• Launched this inauguralsustainability report post
spin-off aligned to GRI, SASB,
SGX Sustainability Reporting
requirement and United
Nations Global Compact
Ten Principles• Mexico solar manufacturing
facility is certified as
Landfill-Free• Fleet of five LEED-certified
facilities• Total Recordable Incident
Rate of 0.63
• Average Training Hours per
employee is 37.4

• All of our manufacturing plants
and R&D facilities are certified
in ISO 9001: 2015 Quality
Management System,
ISO45001: 2018 Occupational
Safety and Health Management
System and ISO14001: 2015
Environmental Management
System

ENVIRONMENTAL

SOCIAL

GOVERNANCE• Powering 1.1GW ofsolar energy
APPENDIX

19© 2021 Maxeon Solar Technologies

ENVIRONMENTAL

Spotlight

Towards Circularity,
Measuring Our Impact

ENVIRONMENTAL

Towards Circularity, Measuring Our Impact

INTRO

More Sustainable By Design: Maxeon is Cradle to Cradle Certified
SunPower Maxeon™ solar panels are the world’s first solar panels to be Cradle to Cradle Certified® and havevoluntarily achieved this certification since 2014.

ENVIRONMENTAL

The Cradle to Cradle Certified Product Standard is a globally recognised measure of product sustainability
from the Cradle to Cradle Products Innovation Institute. To achieve the certification, products are assessed
across five categories: material health, material reutilisation, renewable energy and carbon management,water stewardship, and social fairness. The certification recognises products that are creating a positive
impact on the environment and society by ensuring a circular economy through their design

SOCIALand manufacturing.
Earning this certification year after year highlights our commitment to producing solar panels that are assustainable as the energy they produce. By aligning with its requirements, we reduce our impact on theenvironment, while demonstrating our commitment to playing a role in the circular economy. For more
information on the Cradle to Cradle Certification products, please visit c2ccertfied.org.

GOVERNANCE

Our certification scorecard highlights our overall designation as ‘Bronze’. Our efforts were also recognisedwith the inaugural 2019 pv magazine Sustainability Award for sustainable design and business practices.
APPENDIX

21© 2021 Maxeon Solar Technologies

ENVIRONMENTAL

Our Environmental Responsibility: An Overview

INTRO

Decarbonisation in the midst of a pandemic“Reducing resource consumption

The topic of climate change has risen to the forefront of the global conversation in recent years, as theand enabling the transition

scientific community unites on the urgency of climate threats. In 2020, as the world began to emerge from theto a low-carbon economy is

COVID-19 pandemic, many began advocating for an environmentally sustainable approach to the economic

top of mind for us to meet ourrecovery, a continuation of a trend that was well underway.

sustainability aspirations.”

Maxeon is committed to playing a key role alongside our peers, international and industry associations, andexternal partners to support climate action efforts by governments and corporations.

ENVIRONMENTAL

Dr. Markus Sickmöller
Chief Operations Officer

SOCIAL

Leading the way toward a low-carbon future
As a leader in the solar industry, Maxeon enables and supports the transition of economies and businesses
towards a renewable, low-carbon future. We strive for the highest integrity, safety and quality. We also
recognise the importance of reducing our operational carbon footprint and are continuously striving to lower
our own energy consumption, greenhouse gas (GHG) emissions, water consumption and waste. In addition,

GOVERNANCE

we are committed to managing our footprint throughout our value chain, working collaboratively with
suppliers, distribution partners and customers to drive holistic impact across the lifecycle of our products andour operations.
APPENDIX

22© 2021 Maxeon Solar Technologies

ENVIRONMENTAL

Our Environmental Responsibility: An Overview

INTRO

Environmental responsibility is core to the way we do business – from sourcing our raw materials to
manufacturing our products. In our Supplier Sustainability Guidelines, we require our suppliers to actively
work to reduce the consumption of natural resources, including material sourcing such as polysilicon. We

ENVIRONMENTAL

also include sustainability criteria in our tenders to track this environmental impact. These criteria focus onenvironmental issues including energy and other resource reduction, air emission control, pollution, theuse of hazardous substances, wastewater and solid waste management to mitigate current and emerging
environmental risks where we operate.
As we strive to move from a linear to a closed-loop, circular model in our business, we look to reduce our
impact on the environment across the various stages of our business, particularly in sourcing recycledmaterials and managing end-of-life product impacts1.

SOCIAL

Recognised with
the Prime Minister’s
Hibiscus Award
2019/2020,
Malaysia for our environmental
accomplishments and leadership
GOVERNANCE

1.

The scope of our environmental data and initiatives discussed in this report covers our main environmental footprint in our solar cell and manufacturing
facilities from Malaysia, the Philippines, France and Mexico.

23© 2021 Maxeon Solar Technologies

APPENDIXENVIRONMENTAL

Energy and Emissions
According to the World Economic Forum Global Risks Report 2021,
environmental risks continue to be among the top potential threats tobusiness, by likelihood and impact, alongside the ongoing pandemic.
In the face of the climate crisis, we recognise that it is important for
us to play a key role in managing our own energy consumption andemissions across our business operations and manufacturing sites.

Management ApproachINTRO

Our Initiatives: Improving energy efficiency
As a first step on our journey to reduce emissions, we continuously
explore, pilot and utilise viable energy efficient initiatives across

ENVIRONMENTAL

our sites.
In the Philippines, we have implemented many energy efficiency
programmes at our site over the years. To name a few, we converted
lamps and tower lights from Halogen to LED, replaced heavy-duty

We have adopted a data-backed approach consistent with previous

cooling fan blades with lighter materials and standardised the coolingLife Cycle Assessments (LCAs) and annual reporting across our sites

processes for the control panels of wet tools. Overall, our energy

to gain a deeper understanding of our carbon footprint and emissions

conservation programmes in the Philippines resulted in total energy

across the different stages of our product value chain. Through thesesavings of 6.7 MWh in 2020.

SOCIALefforts, we made many strides in our journey towards improving
energy efficiency in our business operations, leveraging technology andautomation as an enabler and moving towards renewable energy in

GOVERNANCE

our operations.

APPENDIX

24© 2021 Maxeon Solar Technologies

ENVIRONMENTAL

Energy and Emissions
In Mexico, we replaced fluorescent lights with LED lighting across ourfactory sites to increase our energy efficiency by 80-90%. Our energy
efficiency measures further contribute to our LEED Gold certification
and we promote energy efficiency across our operations. The primarymanner by which we accomplish this is through the productive use ofenergy in our motors through the installation of Variable Frequency
Drives (VFDs). The energy efficiency programmes at our plant in Mexico
have resulted in 316.9 MWh of energy savings in 2020.

INTRO

Our Initiatives: Technology and automation as enablers
We support our employees and contractors on site through the useof automatic sensors and timed programmers to reduce heating and

ENVIRONMENTAL

lighting to enhance energy conservation efforts. In addition, we work
to continuously educate and encourage our employees to practise
environmental responsibility and reduce unnecessary energy usage.
To increase energy efficiency in the Philippines, for example, we
implemented an automatic timer to monitor the site’s air conditioning

SOCIAL

usage and installed VFDs in our larger equipment such as condensers,
chiller water pumps, cooling tower pumps and scrubbers. We also relyon optimisation processes to improve our current energy efficiency
across our operations, improving our systems overall pressure,temperature, condenser water pumps and booster pumps. The totalenergy savings at our plant in the Philippines was 4.3 MWh in 2020.

GOVERNANCE

APPENDIX

Installation of VFDs in our motors

25© 2021 Maxeon Solar Technologies

ENVIRONMENTAL

Energy and Emissions
In France, we began using automated sensors and better managed
the use of light in our factory through daylighting to boost our energy
efficiency. Moreover, we have implemented mandatory shutdowns ofenergy for heaters and machinery when there is no production within
our factory. Overall, these energy-management initiatives resulted in
367.1 MWh of energy savings for our site in France in 2020.

INTRO

Our Initiatives: Leveraging solar energy forour operations
As a solar company, powering our operations with as much solar energy

ENVIRONMENTAL

as possible is core to our mission. To reduce our carbon footprint inour operations, we installed rooftop PV panels and procured green
energy across our manufacturing sites.

SOCIAL

GOVERNANCE

Automated sensors were installed across our France site.
APPENDIX

Carport solar in Mexicali, Mexico facility26© 2021 Maxeon Solar Technologies

ENVIRONMENTAL

Energy and Emissions

INTRO

CASE STUDYCASE STUDY

Ramping up Renewable Energy in Malaysia

Renewable Energy in Our Philippines Facility
ENVIRONMENTAL

In 2013, we began Phase 1 of a 1.5 MW solar system to generate
approximately 1,800 MWh of clean electricity per year. We
installed the solar system onto our covered carpark andmotorcycle areas as well as the central administration building.
We also have plans to install a 7.8 MW solar system on the roof of
our fabrication plant.
0.2 MW

The solar panel installation project is predominantat our Philippines site, as numerous structures don
SunPower branded solar panels within the plant,
carpark and security posts. In our facility, we also havea solar electric motor golf cart generating 0.3 MWhof power per year that is primarily used to transport
employees within the site. The installation of these
solar projects has resulted in cumulative energy
savings of 1.8 MWh.

SOCIAL

Our solar-powered golf cart
2
2. Central Admin Building

13

1. Future planned – FAB rooftop

27© 2021 Maxeon Solar Technologies

GOVERNANCE

1.5 MW

3. Covered carpark andmotorcycle area

Installation of Solar Panelat the Security Post

Solar Carpark

Installation of Solar Panels
at the South Main RoofAPPENDIXENVIRONMENTAL

Energy and Emissions

INTRO

CASE STUDY

Solar Across Carparks and Organic Gardens
in Mexico

ENVIRONMENTAL

We installed solar panels across our manufacturing plant in
Mexicali, Mexico. SunPower Maxeon panels now cover our on-site
carparks and organic gardens to capture renewable energy for
operational use. Last year, our solar installation projects at our sitein Mexico resulted in a total of 381.4 MWh in energy savings.
SOCIAL

GOVERNANCE

Solar panels installed as part of our
carport project in our Mexicali plant(SPMX1)28

Solar panels installed atop ourorganic garden© 2021 Maxeon Solar Technologies

CETYS University, located in Baja, Mexico, features a
1.2MW solar system using Maxeon technology and isrecognised as the largest university PV system in Latin
America. (See project spotlight on page 81)

APPENDIXENVIRONMENTAL

Avoided Emissions*

Energy and Emissions

INTRO

Performance Highlights
10,147,576 tCO2e

In 2020, we consumed 276,044 MWh of energy across all our
manufacturing sites, estimated at 174,062 tCO2e with an energy
intensity of 254 and an emissions intensity of 160 per MWh produced.

ENVIRONMENTAL

Equivalent to negating greenhouse gas emissions from:Through the installation of our Maxeon solar solutions, we enabled the
avoidance of an estimated 10,147,576 tCO2e in 2020.

1.2 trillion

Looking Forward

2.2 million

1.8 million

In 2021, we will continue to reduce our overall emissions and energy

Passenger vehicles
driven for one year

Homes' electricity use
for one year

SOCIAL

Number ofsmartphones charged

consumption through the implementation of ongoing energy efficiency
and automation initiatives. Additionally, we are exploring increasing the
proportion of renewable energy to offset our overall energy consumption.

Equivalent to carbon sequestered by:
GOVERNANCE

In the coming years, we will continue to strengthen the robustnessof our environmental data coverage around value chain emissions
and explore strategies for improvement such as updated LCAs and

167 million

12 million

increased disclosure of environmental data on global reporting

Trees or seedlings
grown for 10 years

Acres of U.S. forests
in one year

platforms such as CDP. We will also seek to align our emission
reduction targets with science-based benchmarks.
29© 2021 Maxeon Solar Technologies* Calculated using EPA Greenhouse Gas Equivalencies Calculator

APPENDIXENVIRONMENTAL

Water Management
With manufacturing operations that span the globe, we understandthe importance of water and wastewater stewardship, especially incountries that are water scarce and have problems accessing safe andsanitary water. In order to maintain our global commitment to ourpeople and the environment, we treat water in our operations as thevaluable resource that it is.

Management ApproachINTRO

Our Initiatives: Technology application and routine
maintenance to reduce water usage and leakage
As part of our water management initiatives, we implemented internal

ENVIRONMENTAL

water recycling processes through the use of technology to reuse
the water employed for rinsing
purposes during manufacturing.
We also continuously work withour contractors to prevent any

Water is both a key ingredient in and a by-product of the manufacturing

water leakage with the help ofprocesses for solar cells and panels. We manage our water use carefully

automated light sensors andand treat wastewater across our global operations as a standard policy

through routine physical checks.

and approach to manage current and emerging water risks. Across our

These initiatives across the

manufacturing sites, we engage in numerous water recycling initiatives

sites help promote recycling

to reduce overall water consumption and wastewater discharged within

and the efficient use of water,

our production processes.

ultimately aimed at reducing ourwater consumption.

SOCIAL

GOVERNANCE

Technological optimisation for water
management processes

Water conservation programmes in our Philippines plant focus on
optimisation and automation processes to reduce water consumption
and increase overall water efficiency.
30© 2021 Maxeon Solar Technologies

APPENDIXENVIRONMENTAL

Water Management
Our Initiatives: Wastewater treatment and management
At Maxeon, we assess and control the amount of water discharged bytreating and recycling the wastewater created from our operations. We
also adhere to local regulations and ensure environmental complianceto water-related legislations.

INTRO

In Mexico, two water-recycling
projects use reverse osmosis to
reduce the water discharged into

ENVIRONMENTAL

the city sewer. This wastewater isin turn recycled and used to wash
our glassware and in restrooms,

In the Philippines, we conduct internal recycling processes to inject

and for irrigating our gardens.

recycled water into our operations, such as using ABF drain water

We also incorporated sensors

to refill our fire pro water tankand valves into our equipment to measure our water conductivity andand IW tank, thereby limiting the

track water consumption to ensure its efficient use. Our water-related

amount of water we consume.

initiatives resulted in a 4,000 m3/day reduction in water consumption at

Sensors to monitor water conductivity
SOCIAL

our plant in Mexico in 2020.
Our water-related initiatives in thePhilippines facility resulted in an
GOVERNANCE

overall reduction of 4,299 m3/day
in water consumption in 2020.

Wastewater recycling in
the Philippines31© 2021 Maxeon Solar Technologies

APPENDIXENVIRONMENTAL

Water Management

INTRO

Performance Highlights
In 2020, we withdrew a total of 4,203,076 m3 of water across theregions where we operate, with a water intensity of 3,874 m3 used

ENVIRONMENTAL

per MWh produced.

Looking Forward
We take a proactive approach in managing our water consumption
and continue to implement water reduction and recycling initiatives

SOCIAL

across our operations. In addition to complying with local regulations
on water use and wastewater treatment discharge, we will continue to
strive to achieve or exceed best practices within the countries where we
operate, within our industry, and beyond.

3,874 m /MWhwater intensity
3

GOVERNANCE

APPENDIX

32© 2021 Maxeon Solar Technologies

ENVIRONMENTAL

Waste

INTRO

In recent years, waste has become a critical issue for companies
and governments to tackle in light of population growth and a rising
standard of living which requires more goods to be produced.
Increasingly, waste is also becoming a geopolitical issue, with many
countries refusing to accept waste on their shores, creating thepotential for emerging regulatory and financial risk for corporations.

Management Approach
As a solar company, Maxeon plays a direct role in decarbonisation
efforts through our products, but we also continue to manage ourwaste output through an integrated approach of reusing, repurposing

OUR INITIATIVES

Recycling for waste management
ENVIRONMENTAL

We continue to strengthen our waste recycling programmes
across our factories, including the conversion of wood waste into
furniture and manufacturing cartons into paper pulp, as well asa canteen plastic reduction programme and extensive reuse ofinterleaf as scratch paper. At our site in France, we introduced a
new sorting mechanism that focuses on streaming the different
waste sources created within our factory. As a result of thisinitiative, we collected a total of 93.84 kg of bio waste in 2020,
thereby resulting in the avoidance of 37.54 kg of carbon emissions
and the creation of 16.89 kg of compost.

SOCIALand consequently improving our waste diversion rate.

GOVERNANCE

APPENDIX

Waste sorting system in France

33© 2021 Maxeon Solar Technologies

ENVIRONMENTAL

Waste

INTRO

The following table highlights our performance in reusing PPE to reduce
OUR INITIATIVES

Reuse of Personal Protective Equipment (PPE)

our overall waste consumption in 2020.
ENVIRONMENTAL

In the Philippines, we continue to pilot and implement resource
conservation initiatives on site to minimise our environmental
footprint. For example, since 2016, we engaged an external
decontamination service provider to collect, deliver, repair,decontaminate and package the PPE utilised by our employees.
We encourage staff tosend used PPE throughthis channel to collectively
reduce waste generation.
Through our joint efforts,
this ultimately resulted in adecrease of single-use waste
as we reused PPE in a safe
and sanitary manner.

PPE

Blue Aprons

PPE Reused
per quarter (pcs)

Waste Elimination
per quarter (kg)

2,743

1,642
SOCIALFace Shields

1,993

797

Safety Goggles (Elvex)

185

37
GOVERNANCE

Chemical Protection Boots

646

1,421

APPENDIX

34© 2021 Maxeon Solar Technologies

ENVIRONMENTAL

Waste

INTRO

CASE STUDY

Zero Waste-to-Landfill Certification
ENVIRONMENTAL

Maxeon is the first company
in Mexico to be third-party
verified as Landfill-Freesince 2015. This certification
stipulates that less than 1% ofwaste materials can be sent toa landfill and less than 10% of
waste materials can be sent toa waste-to-energy facility, asverified through an external
audit process managed by NSF International, an independent
organisation that oversees the Landfill-Free standard for companies
around the world. (Learn more at nsf.org.)
To achieve this certification, we adopted a lifecycle focused
approach across our supply chain. At the primary stages of our
supply chain, we focused on acquiring downstream waste vendors
through a stringent selection process to reduce our waste in theinitial stages of sourcing. We also implemented a range of waste
reduction procedures during the manufacturing process, including
the segregation of waste.

35© 2021 Maxeon Solar Technologies

To continuously achieve our waste
targets, we recycle on-site food waste
into an organic composting garden
powered by solar.
• Step 1: Site generates 950 pounds/
day of organic waste

SOCIAL• Step 2: Collect organic waste forgarden irrigation through a recyclingmachine that converts food scraps
into soil conditioners for the plant’s
on-site farm
• Step 3: Garden grows produce whichis then consumed in the staff canteen

GOVERNANCE• Step 4: Garden is used as a learning
area for employees to apply theknowledge to their homes
Overall, we were able to generate 2,580 kg of compost in 2020 usedas organic fertiliser for the gardens in our Mexicali facility.

APPENDIXENVIRONMENTAL

Waste

INTRO

Performance Highlights
In 2020, Maxeon produced a total of 11,803 tons of waste (6,125 tonsof hazardous waste and 5,678 tons of non-hazardous waste).

ENVIRONMENTALDO

We recycled 80% of our total waste (71% of our total hazardous waste

part of our sustainability commitment. We will continue to monitor ourwaste consumption practices to achieve reduction and responsible

F

N

ON

Z
-H A

ARDOUS W

AS

TE

O

90%

FH

AZ

In the years ahead, waste management will continue to be an integral

71 % O

Looking ForwardW

AR

and 90% of our non-hazardous waste).

U

S

TE
S
A

We recycled
80% of our
total waste

SOCIAL

disposal for our hazardous and chemical waste, safeguarding our
employees’ well-being, the communities where we operate, andthe environment.

GOVERNANCE

APPENDIX

36© 2021 Maxeon Solar Technologies

ENVIRONMENTAL

Circular Economy

INTRO

Through our environmental sustainability initiatives in energy, water and waste management, we also believe“Building on our past

it is a natural progression for us to contribute to efforts to move from a linear economy to a closed-loop, or

sustainability initiatives andcircular economy approach.

Management Approach
Maxeon continues to strive to adopt the concept of circularity across our operations and to support theefforts of our customers to do the same. From a design perspective, our solar panels have an estimatedproduct lifetime of approximately 40 years and beyond, with a combined product and performance warranty

environmental certifications,applying circularity is a natural
evolution which goes handin-hand with reducing ouremissions and material usage.”

SOCIAL

of 25 years. In our operations, Maxeon aims to play a key role in the circular economy, by establishingsustainable facilities for solar cell and panel production.

ENVIRONMENTAL

Peter Aschenbrenner
Chief Strategy Officer

We also support our customers in their recycling efforts by working
with local recycling experts in the countries where we operate. These
organisations include PV Cycle in Europe, Reclaim PV Recycling and
Hamada Corporation in Asia Pacific, and Recycle PV Solar and SEIA in

GOVERNANCE

the United States.
In order to support end-of-life recycling, we work to maintain ourachievement as Cradle to Cradle Certified, our commitment to Zero
Waste-to-Landfill and to fulfil the responsibilities of our Declare Label.
37© 2021 Maxeon Solar Technologies

APPENDIXENVIRONMENTAL

Circular Economy

INTRO

Our Initiatives: Design circularity across our production plants and buildings
In order to integrate circular principles in our operations, we strive to ensure that our facilities are built
as sustainably as possible, adopting the principles of Leadership in Energy and Environmental Design

ENVIRONMENTAL(LEED) certification.
In 2020, our solar cell fabrication facility in Laguna,Philippines, was awarded the LEED for Building
Design and Construction Gold certification for
SOCIALits environmental performance and sustainable
operations. This brings Maxeon’s total numberof LEED-certified buildings to five, with three
LEED Gold manufacturing facilities and two LEED
Platinum administration buildings.

Ensenada, Mexico MODCO facility

GOVERNANCE

LEED certification recognises the sustainability of the design, construction and operation of buildings withthe least environmental impact and the most efficient use of resources. Developed by the U.S. Green
Building Council and recognised worldwide, LEED is a transparent certification process that includes anumber of rating systems for the design, construction, operation and maintenance of environmentally

APPENDIX

sustainable structures.
Mexicali, Mexico
MODCO facility38© 2021 Maxeon Solar Technologies

ENVIRONMENTAL

Circular Economy

INTRO

Our Philippines plant achieved the LEED Gold certification through the implementation of numerous
strategies to ensure the plant’s sustainability, including the efficient use of water, indoor environmental
quality, energy management, efficient use of resources and materials, and innovation and design. In 2016,
our administration building in Philippines was also awarded the LEED Platinum certification.

ENVIRONMENTAL

Our plant in Malaysia also achieved the LEED Gold Certification for the manufacturing facility in 2015 anda LEED Platinum Certification for the Central Admin Building (CAB) in 2012. This was achieved throughthe adoption of many sustainable initiatives, including the use of certified wood and recycled materials
during construction.

SOCIAL

Our plant in Mexico achieved the LEED Gold Certification for the
manufacturing facility in 2016. The key initiatives adopted were targeted
at reducing equipment energy consumption by 70%, improving indoor
thermal comfort, and an LED lighting conversion project. The Mexico plantalso achieved the “Clean Industry Certificate” 2020 (on the right) by the US

GOVERNANCE

Environmental Protection Agency (EPA). This certification recognises the
improvement of industry processes and competitiveness at the national
and international level. In addition to facilitating the improvement of theenvironment, this certification also highlights energy savings and encourages
proactive, preventive measures rather than a punitive approach.

39© 2021 Maxeon Solar Technologies

APPENDIXENVIRONMENTAL

Circular Economy

INTRO

Our Initiatives: Transparency in our product ingredients
Maxeon's integrated back contact (IBC) panels are the only solar panels
to voluntarily carry a Declare Label for materials transparency, similar

ENVIRONMENTAL

to a “nutrition label” for food products. Issued by the International
Living Future Institute, the label certifies that the product in question
discloses all materials used, their assembly location, life expectancy
and recyclability.
Our transparency in the panel composition, manufacturing process

SOCIALand end-of-life options helps our customers understand our products
better and evaluate their options for clean energy. The label certifies
that our panels are free from harmful substances such as lead or
cadmium and do not require hazardous waste-handling procedures,
thus supporting the recycling process.

GOVERNANCE

View our Declare Label here.

APPENDIX

40© 2021 Maxeon Solar Technologies

ENVIRONMENTAL

Circular Economy

INTRO

Performance Highlights
Five LEED® Certified Facilities including 100% of Maxeon IBC Cell Production
ENVIRONMENTAL

Looking Forward
We aim to continuously integrate circular economy strategies into
MexicoLEED® Gold

Malaysia (Fab3)
LEED® GoldMAXEON 5
MAXEON 3
MAXEON 2

MAXEON GEN 5
MAXEON GEN 2

Solar Panels

Malaysia (Admin Bldg)
LEED® Platinum

Solar Cells

Philippines (Fab4)
LEED® GoldMAXEON GEN 3
Solar Cells

Philippines(Admin Bldg)

LEED® Platinum

our operations through a sustained focus on the environmental
impacts and certifications of our products and manufacturing

SOCIAL

facilities, such as Cradle to Cradle Certified, Declare Label and our
LEED certifications.
In addition to our current efforts, Maxeon is exploring opportunities
and strengthening partnerships for mitigating unintended productlifecycle impacts, understanding that internal processes andexternal practices will evolve over time.

GOVERNANCE

APPENDIX

41© 2021 Maxeon Solar Technologies

ENVIRONMENTAL

Performance Metrics

INTRO

TOTAL (2020)

TOTAL (2020)

Energy Consumption (MWh)276,044

Fuel Consumption (MWh)1,170

Fuel Consumption (Litres)

123,269

Total Water Discharge Volume (m3) 6

4,466,105

562

Water Intensity (m3 / MWh produced)

3,874

Hazardous Waste Generation (tons)

6,125

97

Amount of Hazardous Waste Recycled (tons)

4,341

Green Power Purchased (MWh) 1

6,342

Percentage of Hazardous Waste Recycled (%)

71

On-site Renewable Electricity (MWh) 2

1,722

On-site Renewable Electricity (%)

0.63

Non-Hazardous Waste Generation (tons)

5,678

Total Renewable Energy (% of Electricity)

2.94

Amount of Non-Hazardous Waste Recycled (tons)

5,108

1,604,169

Percentage of Non-Hazardous Waste Recycled (%)

90

LPG Use (MWh)
LPG Use (kg)

41,405

Conventional Purchased Electricity – Grid (MWh)266,246

Conventional Purchased Electricity – Grid (%)

Employee Commute (km) 3
Air Travel (km)Total Water Withdrawn (m3) 5

4,203,076
6,445

Total Water Recycled (m3)

SOCIAL

896,625

Scope 1 Emissions (tCO2e)399

Scope 2 Emissions (tCO2e)173,335

Scope 3 Emissions (tCO2e)

1.

Sources of green power purchased are geothermal, solar and wind through Purchase
Power Agreements

2.

From energy produced by our on-site solar panels

328

3.

Covers leased company shuttle only

174,0624.

Calculated using EPA Greenhouse Gas Equivalencies Calculator

Energy Intensity (MWh consumption / MWh produced)

254

5.

Emission Intensity (tCO2e / MWh produced)

160

Water withdrawn attributes to water consumed. Source of water withdrawn across the sites ismunicipal water apart from FAB 4, which also sources water withdrawn from industrial parks,
residential and commercial water. Mexico (High Baseline Water Stress): Water withdrawn = 1.57%

Total Emissions (tCO2e)

Emissions avoided annually (tCO2e) 442© 2021 Maxeon Solar Technologies

ENVIRONMENTAL

10,147,576

6.

In FAB 3 and FAB 4, water discharged is higher than water withdrawn due to chemical additions in
the treatment of wastewater

GOVERNANCE

APPENDIXSOCIAL

Spotlight

Our COVID-19
Response

SOCIAL

Spotlight: Responding to COVID-19

INTRO

The COVID-19 pandemic has been an unprecedented crisis around the world, devastating lives andlivelihoods. Our employees faced personal struggles as well as professional challenges unlike any other timein our company’s history.

ENVIRONMENTAL

For Maxeon, the pandemic has had an adverse impact on most aspects of our business, and the impact isongoing and will continue to evolve. To safeguard the health of our employees and support the communities

Our SPMX1 site has been
audited and achieved theDistinction Award from
Mexican Institute of Social
Security (IMSS) in recognitionof our efforts in COVID-19
Prevention and Control
in 2020

where we operate, we implemented an immediate, holistic COVID-19 response across the organisation.

Keeping Our Workforce Safe
The safety and well-being of our employees is paramount. We ensure that we keep ahead of the latest
guidelines and advisories issued by the local health ministries and governmental authorities. Through our
weekly COVID-19 Steering Committee Meetings led by our CEO and Executive Leadership Team and regular
working group global meetings, we established health and safety policies, implemented business practices
and met the key objective of having “Zero Local Transmission” within our premises.
At our offices and manufacturing sites, our approach included many new practices, such as contact tracing

SOCIAL

Otorgado a:

Z321483810 - SUNPOWER CORPORATIONMEXICO S DE RL DE CV
Nombre de la Planta: Sunpower Corporation Mexico S.A. De

R.L. de C.V.

Dirección de la Planta: Prolongacion Lazaro Cardenas

Progreso Mexicali

El presente Distintivo de Seguridad
Sanitaria es exclusivo por Centro deTrabajo y es el resultado de tener unMonitor para el Retorno Saludable
habilitado por CLIMSS, haber realizado su
Protocolo de Seguridad Sanitaria ante
COVID-19 y aprobar satisfactoriamente su
evaluación en la plataforma Nueva
Normalidad.

GOVERNANCE

management protocols, control measures such as safe distancing, temperature monitoring, and hygiene
and sanitising practices, as well as deep cleaning of our premises, movement control of overseas visitors/
contractors and limitation of business travel, and finally, implementation of a Return to Work policy forsupport staff.
44© 2021 Maxeon Solar Technologies

Monitor habilitado:Perla Anahi Reynoso Tapia
12/01/2021
Fecha de emisión:

NN2311105820180
Folio Nueva Normalidad

12/01/2022
Vigencia de:

COVID11006386967
Folio CLIMSS

SD2101120545132113
Folio Distintivo SS

APPENDIXSOCIAL

Spotlight: Responding to COVID-19
Contributing to Community Response
During the early stages of the COVID-19 outbreak, when healthcare
staff, hospitals, governments and communities in many countries
around the world faced equipment shortages, Maxeon committed
to providing aid and relief wherever it was possible. Our employees
came together to assist in donations of materials for the buildingof quarantine facilities, provided PPE for frontline workers as wellas provided food to underserved communities who were adversely
affected by the shutdowns.

INTRO

Wood Pallet Donation
for COVID-19 Quarantine
Facility in Philippines
Wood pallets were donated forthe construction of quarantine
facilities at six different
hospitals in the Philippines.
Each facility measures 6x26
metres and can accommodate
15 beds and two lavatory
facilities.

Food Distribution to
Underserved Communities
in Malaysia
Food parcels were delivered
to underserved communities
in Alor Gajah, Malaysia. These
parcels included 500 packets
of rice as well as 200 units ofhand sanitiser.

Supporting COVID-19
Frontliners in Philippines
Donations included:• 60 aprons/smocks• 60 face shields• 4,000 shoe covers

Donations for COVID-19
Frontliners in Malaysia
Phase 1: 1 Apr 2020

ENVIRONMENTAL

SOCIAL1,500 units of food containers
and cutleries, two industrial
stand fans, one portable airconditioner (Value: RM 3,750)
Phase 2: 3 and 10 Apr 2020
500 food containers andcutlery sets, 32 pillows, 139
units of hand sanitiser, 96
bottles of mineral water (Value
RM 2,040)

GOVERNANCE

APPENDIX

45© 2021 Maxeon Solar Technologies

SOCIAL

Social Stewardship: An Overview
With the challenges caused by the pandemic, we“Our interlinked relationshipbelieve, now more than ever, that people are atwith our employees, community

to integrate our purpose of Powering Positive
ChangeTMthroughout our business operations andsupply chain, for the benefit of our employees, ourpartners and the communities where we operate.

pipeline of talent, retain well-performing staff anddrive shared value and areparamount in ensuring

RightsSafetyMaxeon’s continued success.”
Tiffany See
Chief Human Resources Officer

create an environment where employees canCommunity

ER

G
IN

POSITIVE

CH

Employees,
Suppliers andInvestment

ENVIRONMENTAL

and Human

Health andGE

employees, we actively seek to build a diverse

Fair Labour

OccupationalAN

In addition to creating a safe workplace for ourpartners and suppliers

POW

the heart of our operations at Maxeon. We strive

INTRO

Community

SOCIAL

Employee
Engagement

fulfil their potential. It is important for us to develop our employees, provide competitive
employee benefits and ensure fair and safe working conditions so that we have an engaged
workforce who are proud to work for Maxeon.
Externally, we strive to be a responsible corporate citizen by contributing to and supportingthe communities where we operate. For our suppliers within our value chain across theglobe, we emphasise that human rights and fair labour conditions are central to upholding
our operational integrity.

46© 2021 Maxeon Solar Technologies

GOVERNANCE

Diversity andLearning andInclusionDevelopment
APPENDIXSOCIAL

Occupational Health and Safety
Management Approach
At Maxeon, the safety and well-being of our

INTRO

ENVIRONMENTAL HEALTHAND SAFETY POLICY

employees and contractors is our top priority.
Occupational Health and Safety (OHS) is embeddedin every aspect of our day-to-day operations at
Maxeon, from the product design stage through to
the review stage as part of our internal Plan–Do–
Check–Act continual improvement process. We empower, engage and consult our employees and contractors
through participation and partnership programmes, sharing best practices and innovative OHS solutions.

MAXEON SOLAR TECHNOLOGIES, LTD.
(CORP-EHS-MAN-97262)

ENVIRONMENTAL

Maxeon Solar Technologies is committed to Powering Positive
ChangeTM. We strive to achieve sustainable growth while conducting
business through sound safety, health and environmental practices.
The following commitments set the framework for the EH&S
Management System:• We promote an injury-free and occupational illness-freeworkplace.
• We protect the environment by preventing pollution from ourbusiness operations.

SOCIAL• We fulfill our compliance and legal obligations arising frominterested stakeholders and areas where we operate.

Our Initiatives• We contribute to the protection of our environment byproactively reducing our carbon footprint, including
minimizing the consumption of energy and water resources.

We go beyond compliance by subscribing to the most stringent Occupational Safety and Health Administration• We develop our products to minimize environmental impact
throughout their lifecycle.

(OSHA) requirements and are also certified to ISO45001: 2018 Occupational Safety and Health Management• We strive for continual improvement to enhance our EH&S
performance.

and ISO14001: 2015 Environmental Management Systems. Leading and lagging OHS Performance Indicators• We involve the participation and consultation of workers andkey stakeholders in the EH&S process.

GOVERNANCE

are measured as part of our proactive approach. We have incorporated a comprehensive Managementof Change process into our Risk Management approach to address EHS hazards and risks at the design,
implementation, elimination and mitigation stages via the Hierarchy of Controls. All manufacturing plants andJeff Waters
Chief Executive Officer

Approved: November 18 2020

RD&D facilities are subjected to internal audits and third-party assessments to assure that our performanceand management systems are reviewed and functioning efficiently and effectively.
47© 2021 Maxeon Solar Technologies

APPENDIXP OWER ING P OSITIV E CHANGE TMSOCIAL

Occupational Health and Safety

INTRO

We engage in the participation and consultation process with our

To promote physical well-being, Maxeon“Safety is our way of life at

employees and contractors to drive workplace safety. Induction staff

hosts and supports an array of initiatives

training is provided to new employees and contractors at all sites.

including health screening programmes, healthMaxeon Solar Technologies.”

Employees and contractors are empowered to identify Good Catches

campaigns and health talks for our employees.

through feedback suggestions and site inspections. The formation of

We also host team events to promote unity

EHS committees at all sites provides an avenue for discussions andand synergy among our employees while

consultation at all levels so that every employee has a voice and stakeengaging in physical activities. These include

in OHS matters. As part of our Emergency Preparedness and Response

charity runs, jogathons, badminton, mountainplans, we identify and assess key scenarios and prepare throughbiking, paintball and more. We also have in-house, 24/7 medical

competency training and actual hands-on drills.

clinics at our manufacturing sites to provide access to medical care

ENVIRONMENTAL

Chin Siang Yeo
Director, Global EHS

SOCIAL

when needed.
Good health is not solely about physical wellness, however. We foster
the awareness of good mental health too, with "rest and relax" areas aswell as private rooms for nursing mothers at our sites.

GOVERNANCE

APPENDIX

48© 2021 Maxeon Solar Technologies

SOCIAL

Occupational Health and Safety

INTRO

Performance Highlights

Looking Forward

In 2020, Maxeon reported zero work-related fatalities with an industry-

At Maxeon, we continuously strive to keep all our employees safe

leading Total Recordable Incidence Rate of 0.63. There were however,at work. As our organisation expands in scope, we aim to ensure

eight incidents of recordable work-related injury, six (75%) of which

high-risk and non-routine activities are addressed to ensure all ourwere slip, trip and fall in nature with two (25%) that were machinery/

employees and contractors are safe.

ENVIRONMENTAL

equipment related. Incident investigations are conducted using the 8D
Problem Solving Methodology to identify the root causes and corrective
actions with the best transferable practices and key lessons sharedacross the organisation.

EHS Committee Meeting at FAB3,
Malaysia
49

Search and Rescue Drill at SPMX1,
Mexico© 2021 Maxeon Solar Technologies

OUR OHS OBJECTIVESSOCIAL

1.0

0

5000

0

TOTAL RECORDABLEINCIDENT RATENOTICE OFVIOLATION

GOOD CATCHES

Normalised to one
million man hours
including employees
and contractors

Official written citation
stating contraventions
to provisions of theapplicable Occupational
Safety and Healthand Environmental
Legislations

LOCAL
TRANSMISSION AT
PREMISES

Proactive reportingof Near Misses andGood Catches (Unsafe
Conditions andBehaviours) validated
by site EHS teams forboth employees andcontractors

Confirmed “C” Cases
contracted between
Two or more Employees
within Maxeon
Premises

GOVERNANCE

APPENDIXSOCIAL

Fair Labour and Human Rights

INTRO

Management ApproachNon-discrimination

We promote fair labour practices and respect human rights across ourglobal network of operations for all employees, workers in our supply
chains and individuals in the community.
Our Global Human Rights Policy established standards for our global
business conduct related to human rights and labour for employees,

The following
dimensions are
addressed across
our policy:

suppliers and any other business partners, and is made publicly
available through our various stakeholder engagement platforms,

Maxeon upholds a meritbased work environment
and expressly prohibits
discrimination in theworkplace. Maxeon
supports minority andindigenous persons’ rights
in the countries where we
operate, and expects our
suppliers to do the same.

Freedom of
association
Maxeon respects therights of all workers to
associate freely, including
joining labour unions,seeking representationand establishing joint
workers’ councils, under
the conditions that local
laws are respected andadhered to.

ENVIRONMENTAL

SOCIAL

including our website. The policy is informed by global best practices
and guidelines including:• Universal Declaration of Human Rights,• Conventions of the International Labour Organization (ILO),• UN Guiding Principles on Business and Human Rights,• UN Global Compact,• Organisation for Economic Co-operation and Development (OECD)
Guidelines for Multinational Enterprises.

50© 2021 Maxeon Solar Technologies

Non-harassment
Maxeon prohibits
engagement in any formof harassment including
but not limited to statusbased harassment, sexual
harassment and mental or
physical coercion or verbal
abuse of workers. Maxeon
also prohibits the threat ofany such treatment.

A safe andconductive workplace

Forced or childlabourMaxeon works to ensurethat the workplace is a safe
and conducive environment
for everyone. This includes
a cap on the number ofhours worked in a week, faircompensation plans andrigorous safety practices.

Maxeon prohibits any formof forced or child labour,
including modern slavery
and human trafficking.

GOVERNANCE

APPENDIXSOCIAL

Fair Labour and Human Rights

INTRO

Our compliance strategy inculcates a risk-based approach aligning

stakeholders to anonymously report any concerns“Holding Ourselves to a Higher

to the ILO, and our annual training and certifications in our Code ofor infractions of these policies and procedures.

Standard requires us to be stewards

Conduct include labour rights practices. To mitigate risk exposure forbreaches of our policies and procedures, Maxeon requires compliancecertifications from all our suppliers in alignment with the Office ofForeign Assets Control (OFAC) of the U.S. Department of the Treasury.
If increased risk is identified, Maxeon conducts enhanced due diligence
and accords specialised certifications on supplier operations and labour
practices to minimise our risk exposure on identified issues.

Our Initiatives: Supply Chain Management

We have a zero-tolerance policy for any violations ofof all the elements, from minerals tohuman and labour rights. In situations where

human capital, that are embedded

infractions of our policies and procedures arein our products.”

suspected, special measures are taken, including
holistic and robust investigations. If the investigations

Matt Kasdin

prove that the offending party has violated the policy,

Director, Senior Counsel

We hold our suppliers to the same standards as our employees and contractors. We
enforce our policies through our Master Services Agreements, which require suppliers

workforce are aligned with industry international best practices andto acknowledge our policies and Code of Conduct and their responsibilities pursuant toguidelines issued by global organisations such as the United Nations.

these. We also expect our suppliers to track and make available to us upon request any

Rights Policy and Code of Conduct through their employment contracts,
onboarding processes and annual training and certification courses.

compliance certifications.
Maxeon also has established its Supplier Sustainability Guidelines, which encompass risk
assessments, audits, certifications, training and accountability and management systems to

24 hours a day, seven days a week, which allows internal and external

ensure compliance of all laws and regulations around human rights and fair labour.

© 2021 Maxeon Solar Technologies

GOVERNANCE

information relevant to their human rights compliance, including annual assessments andMaxeon also has a Compliance and Ethics Helpline that is available

51

SOCIALthe party will be immediately terminated.

Maxeon’s policies and procedures surrounding the treatment of ourOur employees and contractors are made aware of the Global Human

ENVIRONMENTAL

APPENDIXSOCIAL

Fair Labour and Human Rights
Our Initiatives: Conflict Minerals Policy
Through our established Conflict Minerals Policy, we are committed
to avoiding the use of conflict minerals which directly or indirectly
finance or benefit armed groups in the Democratic Republic of Congo(DRC) or adjoining countries, while continuing to support responsible
mineral sourcing in the region. Conflict minerals include: columbitetantalite (coltan) (i.e., tantalum), cassiterite (i.e., tin), gold, wolframite (i.e.,tungsten) or their derivatives (3TG), and could expand to include otherminerals or their derivatives.

INTRO

1

2

3

Require concerned
suppliers to declare thatall products supplied
either do not contain
3TG that are necessary
to their production orfunctionality, or, if they do,that they originate from
non-conflict areas or fromrefiners or smelters thathave been validated as
being conflict-freeCommit to adopt,widely disseminate, andincorporate this policy incontracts and agreementswith suppliers who may
source the concerned
minerals

Require all Maxeon
suppliers to acknowledge
Maxeon’s Supplier
Sustainability Guidelines

To support this policy, Maxeon has committed to seven key principles(see graphic).
Suppliers identified as having a reasonable risk that they are sourcing
from or linked to any party providing direct or indirect support to, nonstate armed groups, will immediately undergo detailed investigations
by Maxeon. Should any breaches to the Conflict Minerals Policy
arise, remediation measures will be undertaken which can include
suspension or discontinuation of the engagement.

52© 2021 Maxeon Solar Technologies

4
Carry out due diligence
consistent with the OECD’s
recommended process

5
Reserve the right torequest additional
documentation fromsuppliers regarding thesource of any minerals
included in its products,
and ask for traceability
data to be maintained fora minimum of five years

ENVIRONMENTAL

6
Coordinate with othercompanies to create better
reporting solutions

SOCIAL

7
Ensure transparency of theconflict minerals reporting
process by making ourreports publicly available

GOVERNANCE

APPENDIXSOCIAL

Fair Labour and Human Rights

INTRO

Performance Highlights
Zero cases of non-compliance were found in 2020 with regard to human rights and fair labour
issues, both within our internal operations as well as within our supply chain.

ENVIRONMENTAL

Looking Forward
In addition to having a zero-tolerance policy for any violations of human and labour rights,
we continue to monitor current and emerging regulations and industry best practices. We
will continue to enhance our internal policies and controls and work with our suppliers

SOCIALto ensure continued compliance with any relevant laws, protocols and best practices ascircumstances may require.
For any high-risk countries identified in the future, we will work across our value chain to
mitigate risks through our multi-step risk assessment methodology and if necessary, engage
specialists, both internal and external, to aid in risk assessment and remediation measures,
should issues arise.

Zero cases of
non-compliance were
found in 2020

GOVERNANCE

APPENDIX

53© 2021 Maxeon Solar Technologies

SOCIAL

Employee Engagement
Maxeon regards our employees as vital to our collective success andgrowth. The changing nature of the way we work driven by technology
transformation and demographic shifts requires adaptation fromtraditional ways of work through active engagement with all of ouremployees. Through our culture of care and focus on manager
accountability, we aim to create emotional engagement of ouremployees so they care about their work in our company achieving
individual and collective success.

Management ApproachINTRO

Our Initiatives
On an organisational level, we have simplified our annual performanceand key results (KRs) to focus all our team members on 6 corporate
KRs. We have developed a quarterly cadence through Executive
Leadership Team All-Hands Meetings (AHMs) to communicate progress
to all employees. At a site level, these communications are alsodelivered locally through our site AHMs delivered by the site leader.
In addition, our larger sites, Mexico, Malaysia and Philippines, conduct
regular employee engagement sessions led by local site leaders.

We hold our leaders accountable for talent, specifically acquiring andOur company benefits often exceed requirements of local legislation

developing great talent. We are focused on ensuring all our teamin the countries where we operate. Benefits include life and healthcare

members' activities align with our corporate key results through our

insurance, disability support and parental leave, and our healthcare

annual performance management approach. This ensures that every

benefits extend to temporary and contract staff.

team member is focused on what matters most and deliver meaningful

ENVIRONMENTAL

SOCIAL

GOVERNANCE

work which impacts Maxeon’s long-term success.

APPENDIX

54© 2021 Maxeon Solar Technologies

SOCIAL

Employee Engagement

INTRO

Performance Highlights
Through our employee engagement initiatives, we are continuously
engaging our employees globally and through the local teams.

ENVIRONMENTAL

4,609 full-time employees

Looking Forward
We are committed to continuing the existing employee engagement

SOCIAL

activities we have in place and sharing between our sites to create amore consistent experience for our team members.

4,609
full-time employees

GOVERNANCE

APPENDIX

55© 2021 Maxeon Solar Technologies

SOCIAL

Learning and Development
Management Approach
We believe it is important to continuously develop our employees intheir individual career aspirations and to create value and positive
impact for the environment and our customers through our products.
In addition to establishing a set of mandatory annual training modules
on specific regulatory and technical topics, our leaders are accountablefor ensuring all team members have development plans structured

INTRO

In addition, there is a mandatory training programme for all employees
which includes our Code of Ethics and Business Conduct, IT and Safety
training that conforms with local regulations. These training modules

ENVIRONMENTAL

are delivered in an on-demand online format so our employees canaccess them anytime, anywhere.

Performance Highlights

around a development framework. This ensures that all development

Aside from our standard annual

actions are customised to each employee.

mandatory trainings, such as

Global Data Privacy

Information Security
Awareness

SOCIAL

workplace health and safety training,

Our Initiatives
We have developed our Maxeon Leadership Capability framework
which provides a consistent approach to how managers assess
performance and provide feedback to all team members across thecompany. These capabilities – Driven, Selfless and Adaptable – havebeen identified as being most important to Maxeon’s transformation.
We are currently revising our employee onboarding experience toprovide a consistent approach for all new hires and ensure that allteam members understand Maxeon’s core values from their first day.
56

© 2021 Maxeon Solar Technologies

we also have in place six global
mandatory training courses thatare to be completed upon hire, with

Corporate Approval
PolicyWorkplace
Harassment: Managers
and Employees

required refresher training every two

GOVERNANCE

years. These trainings are available

Global Anti-Bribery and

Code of Ethics andonline to enhance accessibility to all

Anti-Corruption

Business Conduct

our employees globally.
APPENDIXSOCIAL

Learning and Development

INTRO

As part of encouraging employees to be accountable for their personallearning and development, we have an online repository of learning
courses available to all employees. Through this online platform we

ENVIRONMENTAL

are able to track employee training to help us better understand our
employees’ desires for personal and professional growth.
In 2020, we delivered 172,262 training hours to our employees, or an
average of 37.4 hours per employee.

SOCIAL

Looking Forward
We are committed to our employees’ learning and development byholding our leaders accountable for ensuring development actionplans are in place that provide development through on-the-job
training (70%), learning through others (20%) and online/classroom
training (10%). All development action plans and manager development

Online repository of learning courses available to all employees
GOVERNANCE

discussions will be linked to our leadership capability framework.
In 2021, we are deploying our first module in our frontline leader
programme, The Maxeon Leader, which covers expectations ofleadership at Maxeon and our leadership capability model.

57© 2021 Maxeon Solar Technologies

APPENDIXSOCIAL

Diversity and Inclusion
At Maxeon, we are committed tofostering diversity and inclusion

INTRO

We reject all forms of discrimination and harassment at thein the workplace to create aworkplace, including:fair and equitable business• sex (which includes
pregnancy, childbirth,breastfeeding, or related
medical conditions, theactual sex of the individual,or the gender identity or
gender expression)

environment for our employees.
This is demonstrated throughour policies, training, diversity
statements and in the way werespect and celebrate diversity
across the organisation.

ENVIRONMENTAL• raceManagement Approach
As a purpose-driven organisation, at Maxeon we believe in empoweringand promoting the social, economic and political inclusion of all
people, which is aligned to the Equal Opportunity and Diversity; NonDiscrimination principle of our Global Human Rights policy.

• colour• religion (including religious
dress practices and religious
grooming practices)• sexual orientation• national origin• ancestry58© 2021 Maxeon Solar Technologies• citizenship• marital status• familial status• age

SOCIAL• physical disability• mental disability• medical condition• genetic information

GOVERNANCE• protected veteran or
military status• any other characteristic
protected by local law or
regulation

APPENDIXSOCIAL

Diversity and Inclusion

INTRO

Our Initiatives

Hiring statement

At Maxeon, diversity and inclusion underscore how we operate and thisThe Company is an equal employment opportunity employer and makes

can be seen in our Board Diversity and hiring statements.

employment decisions, including but not limited to, hiring, firing, promotion, demotion,

ENVIRONMENTAL

training, and/or compensation, on the basis of merit. Employment decisions are

Board Diversity statement

based on an individual’s qualifications as they relate to the job under consideration.

Maxeon is committed to a policy of inclusion and follows

The Company’s policy prohibits unlawful discrimination based on sex (which includes

the guiding principle that our Board composition should

pregnancy, childbirth, breastfeeding, or related medical conditions, the actual sex of thereflect diversity of experience and perspectives.

individual, or the gender identity or gender expression), race, colour, religion, including

In furtherance of this commitment, when considering candidates toorigin, ancestry, citizenship, marital status, familial status, age, physical disability, mental

fill an open seat on the Board, the Committee will request that thedisability, medical condition, genetic information, protected veteran or military status,

pool of potential candidates to be considered by the Committee

or any other consideration made unlawful by federal, state or local laws, ordinances, orfor nomination to the Board include a diverse group of qualified

regulations. The Company is committed to complying with all applicable laws providing

candidates in terms of experience and skills, age and tenure,equal employment opportunities. This commitment applies to all persons involved in thegender, ethnic and social background.

operations of the Company and prohibits unlawful discrimination by any employee of the

In addition, the Committee shall review periodically the compositionof the Board to ensure it reflects the knowledge, experience, skills
and diversity required for the Board to fulfil its duties.

59© 2021 Maxeon Solar Technologies

religious dress practices and religious grooming practices, sexual orientation, national

SOCIAL

GOVERNANCE

Company, including supervisors and co-workers. Maxeon is committed to complying withall applicable laws providing equal employment opportunities. This commitment applies
to all persons involved in the operations of Maxeon and prohibits unlawful discrimination
by any employee of Maxeon including supervisors and co-workers.

APPENDIXSOCIAL

Diversity and Inclusion

INTRO

Our hiring statement and fair employment policies apply to all persons
involved in the operations of the company and are included in all hiring
materials and job descriptions to prohibit discrimination.

ENVIRONMENTAL

Respecting and celebrating different cultures
Prior to the COVID-19 pandemic, we organised festive celebrations tocommemorate the diverse cultures we have across our operationalsites. As we face major disruptions due to COVID-19, Maxeon iscommitted to continuing to celebrate the cultures of its employees
whenever possible.

Performance Highlights
Through our strong foundations and the policies that were establishedafter our spin-off from SunPower, we have disclosed our workforce
diversity stats in terms of gender proportion and age groups in ourSocial Performance Metrics on page 65.

Looking Forward

SOCIALWe aim to increase the diversity of our employees in management
roles by investing in the continuous development of our employees. We
believe that through the inculcation of diversity in our management, we
will be empowered to create integrated and holistic business decisions.
Additionally, to create a diverse and inclusive culture, we intend to

GOVERNANCE

develop and implement a hiring plan focused on attracting, recruiting
and retaining a diverse workforce. We also encourage our employees
to work together toward fostering a caring culture and environment,
conducive to all.

60

© 2021 Maxeon Solar Technologies

APPENDIXSOCIAL

Community Investment

INTRO

Maxeon recognises that it is crucial to support the broader community
where we operate, especially in times as challenging as this ongoingpandemic, particularly for the most vulnerable individuals and segmentsof communities.

Management Approach
Beyond delivering clean energy to our customers, we recognise it is vitalto earn the social license to operate by acting as a positive community
force in the places where we operate and beyond. To address local
needs, our teams in the country develop and manage community
programmes that align with location-specific needs, our businessexpertise and employees’ skills.
In 2020, due to the devastating consequences of COVID-19, lockdowns
and movement restrictions imposed by governments, our focus was

OUR INITIATIVESLight for the World: Tiny solar lanterns bring hopeand light to millions

ENVIRONMENTAL

Maxeon has proudly partnered with Nokero to create portable lanterns powered by
Maxeon solar cells. These portable lights are fitted with a miniature flat solar “panel”,
which can provide light for up to 15 hours from a single day’s charge.
The use of these solar lanterns negates the need for kerosene lamps, which have been
proven to emit harmful toxic fumes and also act as a fire hazard. Beyond the ability toprovide light that is safe and accessible, these lamps have enabled children to readyand study, and local businesses to gain more than 1 billion hours of productivity. These
lamps have further reduced the costs spent on kerosene and candles.
The Nokero lanterns have improved
the lives of communities in more than
120 countries, showing that one sparkof innovation is able to uplift the livesof millions.

SOCIAL

GOVERNANCE

on supporting pandemic recovery efforts. For more information on our
initiatives, please refer to the Spotlight at the top of this section.

61© 2021 Maxeon Solar Technologies—
Maxeon solar cells power Nokero portablelanterns, which provides underserved
communities with access to energy and light,
improving their standard of living.

APPENDIXSOCIAL

Community Investment
OUR INITIATIVES

Solar Mini-Grids Empower Rural Villages in Myanmar
In partnership with Mee Panyar, an innovative organisation devoted to expanding
energy access and empowering underserved communities in Myanmar, Maxeon has
provided SunPower Performance panels to power a 42kWp mini-grid system. This minigrid system is able to provide the community of Kan Byin in southeast Myanmar with
24/7 access to electricity for the first time.
Previously, the community relied on a single man to power up a diesel-fuelledgenerator, to provide a few precious hours of energy each evening for families todo their cooking and light their homes. Apart from the obvious expense incurredby this practice, diesel fumes are harmful to both the health of the community andtheir environment.
The newly installed system not only
allows for a constant source of energy,
but has also provided an opportunity forupskilling, by teaching local technicians
how to install and maintain a solar
mini-grid that will provide reliable, clean
energy for the next 25 years or longer.
—
SunPower Performance panels are part of a"mini-grid" that provides 24/7 power to thisMyanmar community for the first time.

62© 2021 Maxeon Solar Technologies

INTRO

Employee Volunteerism and Community Engagement
We believe in building long-term partnerships with charities and nongovernmental organisations so that we can work together to create

ENVIRONMENTAL

even greater positive impact collectively.
In the Philippines, our longest standing partnership is with the National
Red Cross, with whom we have been working since 2006. We also haveongoing partnerships and community investment initiatives including
Back to School programmes, Oral Health Month programmes as well as

SOCIAL

Forest Building and Blood Donation Drives.
When the Taal Volcano erupted in the Philippines in early 2020, morethan 100 families of Maxeon were affected. We organised a Cash
Donation Drive and in-kind aid to provide relief to the people impacted
by the heavy ash fall, leading to damage in their homes and property.

GOVERNANCE

The drive also provided basic necessities for employees’ families who
had no choice but to either relocate to relatives’ homes or to stayin evacuation centres. The total donations came to PhP 2.3 million
inclusive of 1-for-1 matching by the company, which was used toprovide relief to all affected employees and their families.

APPENDIXSOCIAL

Community Investment

INTRO“This programme taught mea lot about teamwork, how

In Malaysia, a similar community

technical and non-technical institutions are invited

spirit was demonstrated throughto visit our facility with our employees also sharing

the Young Enterprise (YE)their experiences in solar career development andhow to control my nervousness,

Programme, an entrepreneurshipinternship opportunities.

and most importantly taught me

programme organised by Junior
Achievement Malaysia. Our
volunteers closely mentored
and assisted teenage students
in the development of theirbusiness proposals, fostering
entrepreneurial skills. Fiveschools and 205 students andteachers have benefited from

Another ongoing partnership in Malaysia is the
Hawksbill Turtle Conservation Programme, where
our employees volunteer to assist in the excavationof turtle nests, pond and site area cleaning as wellto manage a business and
ENVIRONMENTAL

about responsibility. I am surethat everyone who took partin this programme had agreat experience.”

SOCIAL

as beach cleaning. We also partnered the local
state fisheries department, providing a marine GPS

Cheryl Samad

tracker for an adult Hawkbill Turtle, to understand the

YE Alumna

migratory patterns of the species.

this programme since 2013. The feedback from the students in the
GOVERNANCE

programme was overwhelmingly positive.
Our commitment to community development and education canalso be seen through ongoing initiatives to share knowledge on
solar technology and green practices. Since 2012, we have hosted
monthly educational visits, in which university students from both63

© 2021 Maxeon Solar Technologies(left) 4,584 students from various
educational institutions havevisited our Malaysia site since2012 with two educational visits
conducted before the restrictedmovement order in March 2020.

APPENDIXSOCIAL

Community Investment
Performance Highlights

INTRO

10

$69.681191

community initiatives
hosted in 2020*

community grants
and donations

employee volunteers
in 2020

While 2020 proved to be a highly unusual year with a great deal of
our community resources committed to the challenges that arosefrom the COVID-19 pandemic, our organisation and employees

ENVIRONMENTAL

have consistently been committed to community engagement andinvestment. Over the years, our employees have been actively involvedin an array of community outreach and engagement activities, including
blood donations, provision of rechargeable lanterns to underserved
populations, microgrid projects, forest building and coastal clean-up

SOCIAL

activities as well as mentorship for educational and entrepreneurialdriven activities.

Looking Forward
Maxeon will uphold our commitment to the communities where we

GOVERNANCE

operate and continue to drive social development and empowermentaligned to our social and moral responsibility to society.
APPENDIX* including COVID-19 community outreach64© 2021 Maxeon Solar Technologies

SOCIAL

Performance Metrics

INTRO

Male

52%

Female48%

Work-related Illness, Injuries or Fatalities2

Gender Split

Executive Leadership Team
Male

67%

Female33%

Employee Diversity 1<30 years old–

30-50 years old

33%>50 years old

67%

Professionals / Managers
Male

63%

Female37%<30 years old

1%30-50 years old

80%>50 years old

19%

Number of fatalities as a result of work-related injuries

0

Number of high-consequence work-related injury(excluding fatalities)

0

Number of recordable work-related injury

8
12,762,667

Number of hours worked
Rate of fatalities as a result of work-related injuries

0Rate of high-consequence work related injury

0

Rate of recordable work-related injury

0.63

The main types of work-related injury

75% (6) – Slip, trip and fall
25% (2) – Machinery/equipment

Whether the rates have been calculated based on
200,000 or 1,000,000 hours worked

65

49%

Female51%<30 years old

38%

30-50 years old

58%>50 years old

4%© 2021 Maxeon Solar Technologies

SOCIAL

1,000,000

GOVERNANCE

Technical, Production and Administrative
Male

ENVIRONMENTAL

1.

Employee data are estimated as percentages based on calendar year from our human resource
management system aligned to our reporting scope.

2.

Data for employees and contractors is consolidated for the year 2020.

APPENDIXGOVERNANCE

Spotlight

Power to SpareHow Our Solar Panels Contribute to
Energy-Positive Buildings

GOVERNANCE

Spotlight: Power to Spare – How Our Solar Panels Contributeto Energy-Positive Buildings

INTRO

In Trondheim, Norway, a sleek office building currently generates twice as much solar energy
as it will ever use. This is not an error but an intentional engineering solution to aid in the

ENVIRONMENTAL

development of an energy-positive building. As the term "energy-positive" suggests, thePowerhouse Brattørkaia will produce enough energy to offset all its own energy use as wellas energy consumed through the production of building materials used in the construction,
operation and disposal of the building.
SOCIALThe SunPower Maxeon solar panels installed on the roof of the iconic building offset hiddenenergy costs embedded in the building's construction and eventual demolition over a lifetimeof 60 years. The solar system is also considered unique in its design. Instead of a flat, wideroof, the building's roof slopes steeply to take full advantage of the sun's position in the
Northern Hemisphere.

GOVERNANCE

A total of 1,157 SunPower Maxeon solar panels cover the roof, producing, on average,
358 MWh of energy annually. Even in the northernmost reaches of Europe where winter days
are only four hours long, the Powerhouse generates valuable solar energy through Maxeon’shigh efficiency solar panels. In the summer, when daylight hours stretch to 20 hours per day,excess energy is exported to the power grid.

67© 2021 Maxeon Solar Technologies

Powerhouse Brattørkaia is a striking example of what climate-friendly office spaces
could look like in the not-too-distant future: inspiring, resilient, and 100%energy-positive.
APPENDIXGOVERNANCE

Spotlight: Power to Spare – How Our Solar Panels Contributeto Energy-Positive Buildings
Importance of High-Efficiency Panels in Limited Space
By designing an angled rooftop instead of a flat one, the design team
was able to increase the amount of solar surface. Still, the building must
produce, on average, more than twice what it consumes in order to beenergy net-positive. For this reason, SunPower Maxeon panels, which
generate more power in a given space than any commercially available
panel, were the ideal choice.

INTRO

For its efforts, Powerhouse
Brattørkaia has received the

ENVIRONMENTALBREEAM Outstanding certification,
the highest possible ranking by
the world's leading sustainability
assessment method for an
asset's environmental, social

SOCIALand economic sustainability

The shape and position of the building along a riverfront raised further

performance. Its solutions

considerations, specifically, high winds.

support the Paris Agreement that
pursues efforts to limit the global"This project had the highest wind load that we have ever worked

temperature increase towith – 5 kilo newton per square meter or 5000 Pa," recalls Helene Bøe

1.5 degrees Celsius.

Tømmerbakke, project leader. "We didn't think there were any solar
modules that could withstand this wind load but then we found out

To attain this climate goal, the world's buildings mustthat Maxeon panels were proven under these conditions.” The Maxeon

be part of the solution. Powerhouse Brattørkaia

panels installed were certified to Cyclonic Load Resistance of over 6400

demonstrates what is possible when environmental

Pa, equivalent to 375 km per hour, which is above a Category Five on

design principles come first. Maxeon is proud to standthe cyclone intensity scale.

with this team.

68© 2021 Maxeon Solar Technologies

A total of 1,157 SunPower Maxeon solar
panels cover the roof, producing on average
358 MWh of energy annually.

GOVERNANCE

APPENDIXGOVERNANCE

Governance Approach: An Overview“Practising integrity and safeguardingorganisational value require a rigorous

Good governance is essential to creating and preserving value for our

We have a robust Code of Ethics and Businesscustomers, shareholders and other stakeholders. This includes a soundConduct (“Code of Conduct”) policy thatapproach to corporate governance that complies with all applicableaddresses issues of corruption, bribery, anti-

laws, rules, regulations and policies as well as unwavering adherence tocompetitive and other improper corporate

Maxeon’s values.

behaviours. The Code of Conduct acts as a

The key to successful business operations entails fostering positive
relationships – between employees, suppliers and our customers.
At Maxeon, we understand the importance of trust in achieving ourgoals as a company, and therefore
we place a high priority on complete

focus on compliance with all laws,
regulations and industry best practices.”
Kai Strohbecke

guideline and assists in the proper evaluationof behaviours that should be enhanced andintegrated at Maxeon. We ensure that all our existing and new stakeholders, including our
suppliers and employees, are familiar with our Code of Conduct; thereby adhering to ouroperations and governing policies.

sets high standards with regard to product quality and reliability. In addition to implementing

We Thrive Together: Good governancecomprehensive quality management systems, our products are certified by international

leads to good business.

third-party agencies, and we provide our customers with an industry-leading, long-term

integrity in our affairs by staying vigilant on corporate behaviour, bothinternally and externally, which will in turn ensure that we build a strong
foundation for our business.
69© 2021 Maxeon Solar Technologies

SOCIALstringent policies and upholding Maxeon’s corporate values.
At Maxeon, we strive to maintain the integrity of our products and services. Our Quality Policy

in an ethical manner and maintain

ENVIRONMENTAL

Chief Financial Officer

transparency and integrity across our

At Maxeon, we conduct business

INTRO

GOVERNANCE

warranty. As customer satisfaction is imperative to us, we engage our customers regularly
with customer surveys and are committed to upholding their trust in us. We aim to stayahead of the curve through a focus on sustainable innovation to empower our customers
to reach new levels of sustainability. As a company, we are committed to the continuous
improvement of our technology to optimise usage and maximise our contribution to
the environment.

APPENDIXGOVERNANCE

Business Integrity and Ethics

INTRO

Management Approach
Our reputation as a company is based on the personal integrity of

To ensure we mitigate risks,

Globaleach employee and those with whom we do business. We endeavour

we have an extensive set ofAnti-Corruption

Insider Trading

to conduct ourselves in a manner beyond reproach. The company’s

corporate governanceCompliance

Policydirectors, officers and employees are expected to conduct themselves

policies that include:

ENVIRONMENTAL

Policyin accordance with the highest moral and ethical standards, informedby Maxeon’s Code of Conduct.
Code of Ethics

To instill ethical business practices in our workplace and across ourand Businesssupply chain, Maxeon conducts annual training for both its employees

Conduct

and suppliers on our Code of Conduct. This training emphasises ourcore values of honesty and transparency as well as our commitment

Our Corporate
Governance Policies
Made available in sevenlanguages where most of ouremployees are based in or
suppliers are from (English,
Chinese, Spanish, French,
Japanese, Malay and Tagalog)

Whistleblower

SOCIAL

Policyto corporate sustainability. The training also covers conduct we do nottolerate, such as insider trading and other prohibited practices.

GOVERNANCE

Our detailed risk assessment process can be found in our 20–F
Annual Financial Report. We have a global presence and organisational
structure, which can increase the potential impact of adverse changes

Find out more about ourin laws, rules and regulations.

ESG policies here.

70© 2021 Maxeon Solar Technologies

Conflict Minerals

Global Human

PolicyRights Policy

APPENDIXGOVERNANCE

Business Integrity and Ethics

INTRO

Our Initiatives: For our Employees

For our Suppliers

Our employees are made aware of our Code of Conduct andOur suppliers and their relevant agents are required to adhere to

Whistleblower policies through their employment contract, annual

Maxeon’s Code of Conduct and thereby, uphold the highest standards

compliance training, certification and courses.

of ethics highlighted on the next page.

Our compliance and ethics helpline is available 24/7 online or by phone

In addition, we also expect our suppliers to adopt or establish their own

for both internal and external stakeholders to report any known orinternal management systems to fulfil the requirements of our Supplierpotential violations of applicable laws or breaches of Maxeon’s Code of

Sustainability Guidelines. This management system ensures that theConduct. To ensure inclusivity, web-based reports may be submitted

supplier’s operations and products are compliant with our guidelines,

anonymously, and in any language. We engage an independent third

as well as all laws, regulations and customer requirements. Additionally,

party to assist in administering the helpline.

the supplier management system will assist in the identification andOur process for corporate compliance includes the creation ofa whistleblower report, which is subsequently assessed by an
executive-led committee and investigated based on the nature of the

ENVIRONMENTAL

SOCIAL

mitigation of operational risks pertaining to our guidelines while
facilitating continual improvement.
GOVERNANCE

incident. If required, we engage external consultants, such as lawyers,
accountants or other specialists. Ultimately, all reports are reviewed by
our audit committee and remediation actions are determined on acase-by-case basis.

71© 2021 Maxeon Solar Technologies

APPENDIXGOVERNANCE

Business Integrity and Ethics

INTRO

Supplier Sustainability Guidelines for Internal Management System
ENVIRONMENTAL

1

2

3

4

5

6

Company
Commitment

Management
Accountability andResponsibility

Legal andCustomerRequirements

Risk Assessment
and RiskManagement

Improvement
Objectives

Training
SOCIAL

7

8

9

10

11

Communication

Worker Feedback
and Participation

Audits andAssessments

Corrective Action
Process

Documentation
and Records

GOVERNANCE

APPENDIX

72© 2021 Maxeon Solar Technologies

GOVERNANCE

Business Integrity and Ethics

INTRO

Performance Highlights

2020

Risks relating to bribery and corruption are continually identified
through our risk assessment process. Due to our global presence,in situations where we must engage with countries that may rank

Confirmed incidents of corruption andactions taken

0

Operations assessed for risks related
to corruption

100%

ENVIRONMENTAL

poorly on Transparency International Corruption Perceptions Index,
we will strengthen governance measures, such as requiring additional
compliance certifications when dealing with governmentand regulatory authorities.

Looking Forward
As we operate in a fast-changing world, Maxeon will continue to
evolve its best practices to further strengthen our robust policies
and procedures with regard to ethical business practices within ourcompany culture and in the way we conduct business.

Confirmed incidents in which employees weredismissed or disciplined for corruption

0

Confirmed cases of bribery and actions taken

0

Confirmed incidents when contracts with business
partners were terminated or not renewed due toviolations related to corruption

0

SOCIAL

GOVERNANCE

APPENDIX73© 2021 Maxeon Solar Technologies

GOVERNANCE

Product Quality, Reliability and Safety
Management Approach
At Maxeon, we consistently aim for excellence and best in class for allthat we do. Our Quality Policy is no different. It acts as our guideline
to ensure zero compromise on the quality, reliability and safety ofour products.
We have an integrated, robust set of controls and processes to meetand exceed our customers' requirements – from innovative design
to supplier and materials qualification to effective and traceable
manufacturing controls and end-of-line testing.

INTRO

Monitoring these processes allows us to continually seek opportunities
for innovation and improvement, while taking our stakeholders’considerations into account. As demonstrated in the process map on
the next page, the support functions collaborate closely with product

ENVIRONMENTAL

teams to ensure excellence in our operational teams and in our overall
efficiency as an organisation.
QUALITY POLICY
MAXEON SOLAR TECHNOLOGIES, LTD.
(CORP-EHS-MAN-97262)

MANAGEMENT SYSTEMCERTIFICATEAt Maxeon Solar Technologies:• We hold ourselves to a higher standard, striving for

Certificate no.:10000407923-MSC-RvA-SGP

Initial certification date:
15 July 2009

SOCIAL

Valid:
16 April 2021 – 25 January 2023

the highest levels of safety, quality and integrity.

This is to certify that the management system of• We push the boundaries of solar technology andcontinually improve.

All of our manufacturing plants and R&D facilities are certified tointernationally recognised standards, such as ISO 9001:2015 Quality
Management System, ISO45001: 2018 Occupational Safety and HealthManagement System and ISO14001: 2015 Environmental

Maxeon Solar Technologies, Ltd
Techview 1 Kaki Bukit, Unit 02-01, Singapore 415941, Singapore
and the sites as mentioned in the appendix accompanying this certificate• We thrive together and empower both decision-making

and contributions to quality within our organization.

By living by our values, and by meeting or exceeding
customer and stakeholder requirements, our work does
more than raise the bar for an entire industry:has been found to conform to the Quality Management System standard:

ISO 9001:2015

This certificate is valid for the following scope:

The Design, Manufacture and Delivery of High Performance Solar Cells and PV Modules
for Residential, Commercial and Utility-Scale Power Plant Customers

We give our customers everywhere the power tomake a positive impact on our world.

GOVERNANCE

Together, we are Powering Positive Change™.

Management System. At the core of our business processes are threefunctions: product development, realisation and distribution. These
processes are carefully monitored by our Executive Leadership Teamagainst predefined targets and to enable closed-loop learning.

74© 2021 Maxeon Solar Technologies

Jeﬀ Waters
Chief Executive Oﬃcer

Markus Sickmoeller
Chief Operating Oﬃcer

Place and date:
Barendrecht, 22 April 2021

For the issuing office:
DNV - Business Assurance
Zwolseweg 1, 2994 LB Barendrecht, Netherlands

Approved: November 18 2020

Erie Koek
Management Representative

Lack of fulfilment of conditions as set out in the Certification Agreement may render this Certificate invalid.
ACCREDITED UNIT: DNV GL Business Assurance B.V., Zwolseweg 1, 2994 LB, Barendrecht, Netherlands - TEL: +31(0)102922689. www.dnvgl.com/assurance

APPENDIXGOVERNANCE

Product Quality, Reliability and Safety

INTRO

Maxeon’s Process Map, reflecting business processinteractions in our organisation
LEADERSHIPENVIRONMENTAL

CLOSED-LOOP LEARNING

Product Design
Product Qualification

SALES ANDDEVELOPMENT

BOM Release
Supplier Selection
PRD Compliance

CUSTOMERS
AND RELEVANT
INTERESTEDPARTIESPRODUCTREALISATION
Manufacturing
Logistics / Packaging
Procurement
Facilities

PRODUCT
DISTRIBUTIONFORECASTING
and PLANNING

PRODUCTDEVELOPMENT
NPI and
DEPLOYMENTMARKET
DEFINITION
AND PRODUCTREQUIREMENTS

Sales Channel
Management
Customer Operations
Application Engineering
Aftersales + Training© 2021 Maxeon Solar Technologies

SOCIAL

Supplier Management
GOVERNANCE

Design Guidelines

SUPPORT FUNCTIONS:EHS / FINANCE / LEGAL / QUALITY / SUSTAINABILITY / IT / HR /MARKETING AND COMMUNICATION

75

MONITOR,MEASURE,ANALYSE AND
EVALUATE
CONTINUALIMPROVEMENTCUSTOMERS
AND RELEVANT
INTERESTEDPARTIESAPPENDIXGOVERNANCE

Product Quality, Reliability and Safety
Our Initiatives
Maxeon exhibits confidence in the quality ofour panels through our industry-leading,25-year warranty. Our panels undergo
extensive testing to ensure confidence inmanufacturing quality, product performanceand reliability over time. All our products are
certified using internationally recognised thirdparty certification bodies, before shipping toour customers.

INTRO

Maxeon’s iQuality system is customised to facilitate and“Driving quality,

retain various quality and reliability information to actively

reliability and safety

demonstrate our emphasis on data integrity and transparency.

is an integrated effort

We also ensure that we undertake stakeholder engagement inand embedded in

the quality, reliability and safety of our panels, which assists us

everything we do.”

ENVIRONMENTAL

in enhancing our processes for greater efficiencies. Engagementof employees on the shopfloor allows for the insight of differing

Dr. Thorsten Juchem

perspectives. This level of engagement sparks ideation andSenior Director, Manufacturing
Quality and Reliability

assists in the continual improvement of solar solutions that are

SOCIALever more efficient and reliable.

Internally we perform regular outgoing reliability assessments tovalidate the performance of our panels prior to shipment. These
reliability assessments are based on methodologies defined in our

GOVERNANCE

Reliability Monitoring programme.
Beyond the production of high-quality panels, we further control any
changes through a rigorous change management process in whichcriteria are set forth to assess the impact of any change impacting form,
fit or function.
76© 2021 Maxeon Solar Technologies

Local management team headed by Wouter Ooghe, General Manager, FAB 3
regularly engages manufacturing Team Leaders at Cluster Meetings

APPENDIXGOVERNANCE

Product Quality, Reliability and Safety

INTRO

Performance Highlights
The quality, resilience and reliability of our panels is recognised througha number of reputable certifications, some of which are focused on
overall product quality while others focus more on specific performance

Typical Certifications

Description

IEC 61215

Terrestrial modules – Design qualification andtype approval

IEC 61730

Module safety qualification

IEC 61701

Salt mist corrosion testing

ENVIRONMENTAL

aspects. Our IBC panels not only meet all certification requirements,
but perform safely far beyond the 25-year warranty period – generating
typically 35% more power compared to standard PV panels.
SOCIAL

Maxeon has been compliant with all regulations and voluntary codes
concerning the health and safety impacts of products and services
within the reporting period. There have been zero cases of noncompliance in this regard.

Looking Forward
Maxeon will continue to strive for unparalleled excellence in the quality,

IEC 62804

Detection of potential-induced degradation(PID)

UL 1703

Flat Plate PV Modules and Panels

IEC 62716

Photovoltaic (PV) modules – Ammonia
corrosion testing

GOVERNANCE

reliability and safety of our solar panels. Through regular engagementwith stakeholders and leading industry developments, we aim to foster
increased innovation.

77© 2021 Maxeon Solar Technologies

APPENDIXGOVERNANCE

Sustainable Innovation
Management Approach
In a world of constant change, the only way to make a meaningful
impact is to stay ahead of the curve in spite of the demands of fastchanging climate conditions across the globe. We do so through our
products and by positively affecting the value chain, both upstream anddownstream. We believe in collaborative innovation – influencing andworking hand-in-hand with our suppliers to design new processes andsolutions to be leaner and more efficient in our material utilisation. We
also enable our customers to achieve their solar and clean energy goals
through innovative, reliable and efficient technology.

INTRO

at the top part of the cycle followed by a freeze cycle to impart highmechanical stresses on the components. Testing reveals that there isalmost no impact from this stress on our panels, even after 380 cycles(38 times what's required for certification). Conventional panels, on the

ENVIRONMENTAL

other hand, show power loss after 10 to 20 cycles.
The patented metal foundation of Maxeon cells allows them to bend
under tough conditions with our proven track record of an expected
useful life of 40 years and a return rate of less than 0.005% on over

SOCIAL

15 million panels shipped and studied.
Refer here to find out more.

Our Initiatives: Innovating to Meet the Demands of a
Changing Climate
SunPower Maxeon panels are engineered to meet the challenges ofNo grid lines
SunPower Maxeon cells use back-contact conductivity, eliminating
unsightly metal gridlines, and enabling them to absorb more sunlight.

a changing climate and more weather extremes which will be more

Solid metal backing

prevalent in the future. One of the durability tests SunPower Maxeon

Metal adds massive strength to each cell, helping it resist corrosion
from the element, while making the entire panel more durable.

panels endure is a Humidity Freeze that mimics the whiplash of afreeze-thaw cycle. The test involves a temperature swing of –40 toThick connectors+85°C, one cycle per day, with a heat and humidity soak (85% RH, 85°C)

Expanding and contracting from daily temperature swings are no problem
with our built-in strain relief and thick, triple-redundant connectors.

78© 2021 Maxeon Solar Technologies

GOVERNANCE

APPENDIXGOVERNANCE

Sustainable Innovation

INTRO

Our Initiatives: Product Design and Innovating with our
Suppliers in our Value Chain

Our Initiatives: Enabling and Supporting
our Customers’ Clean Energy Journey

Our sustainability efforts carry through to our modulisation technology

As Maxeon builds on a legacy of 35 years of pushingand product innovation as well. We leverage our in-depth knowledge

the boundaries of innovation, we continue to provide

of solar cell and solar panel construction to push the boundaries of

products that are more powerful, reliable and durable

module efficiency without compromising reliability or performance.

than any other panel on the global market. In turn,High-efficiency modules use less raw materials like metal, plastic, andour customers can power their homes and businesses

glass for every watt-hour of energy produced as well as secondary

more efficiently using our solar panels.

impacts such as savings in transportation emissions.

ENVIRONMENTAL

SOCIAL

Other areas of module improvements involve working with industry
leading suppliers on minimising the size of our junction boxes andplacing them optimally on the module which reduces the volume ofplastics used in the housing, cables, connectors and potting material.
Maxeon is uniquely positioned to innovate relentlessly in sustainability

GOVERNANCE

and efficiency programmes that minimise our impact up and down thesolar supply chain.
APPENDIX79© 2021 Maxeon Solar Technologies

GOVERNANCE

Sustainable Innovation

INTRO

SUCCESS STORY

SUCCESS STORY

SolarStratos

Lightyear One
ENVIRONMENTAL

With a wingspan of 24 metres andweight of 450 kg, the SolarStratos
plane is covered by 22m2 of SunPower
Maxeon solar cells that charge a
20-kW lithium-ion battery system,
which powers a 32-kW electric motor– about the third the size of a typicalelectric vehicle engine.
The team’s goal is to eventually fly theelectric aircraft into the stratosphere,
which begins 10-13 km from thesurface of the earth.
“SolarStratos requires the best-of-the-best when it comes to solar efficiency,
and Maxeon is constantly pushing their technology to its limits. We want ourrecord-setting projects to demonstrate how solar is actually a technologythat everyone can utilise in their daily lives.”
Raphaël Domjan, SolarStratos Founder and Pilot
Click here to find out more.

80© 2021 Maxeon Solar Technologies

Electric cars are considered the mostenergy efficient of all vehicles today. Allwith a design aesthetic as clean as theenergy it produces.
Lightyear One, a fully functioning
prototype uses SunPower Maxeon
solar cells. Our innovative copper
foundation gives each cell far
more strength and flexibility thanconventional ones, wrapping beautifullyaround Lightyear One’s sweeping
contours without cracking.
Recent testing showed that it can travel up to 725 km without a recharge — a
distance no other commercially available EV can touch.

SOCIAL

GOVERNANCE“The car actually is based on the fact that we had to fit five square metres ofsolar panels onto it, and all the rest is designed around it.”
Rocco Carrieri, Senior Designer for Lightyear partner Granstudio.
Click here to find out more.

APPENDIXGOVERNANCE

Sustainable Innovation
SUCCESS STORY

CETYS
A private, nonprofit university,
CETYS now lays claim to the largest
university solar installation in Latin
America. At the Mexicali campus, aninnovative carport system poweredby Maxeon provides much-needed
shade for more than 3,700 students
and almost 780 faculty members andstaff while producing enough clean
energy to power approximately 50%of the campus’ electricity needs. In
Tijuana, a rooftop system leveraging
our technology at the campus athletic facility provides 100% of the annual
electricity used at the gym, auditorium and sports complex.
“We decided that Maxeon offered us the best panel, it is the panel that has
the most production effectiveness with the longest guarantee, and the factthat they are manufacturing the panels here in Mexicali was also important.”

INTRO

Performance Highlights
Companies around the world want to minimise their environmental
impact and rely on solar as a critical piece of their ESG approach. In

ENVIRONMENTAL

2020, Maxeon continued to innovate right along with our customers,
even as the world was in the grips of a global pandemic. We provided
customers with 1.085 GW of clean energy through our products in spiteof work disruptions and business shutdowns.

Looking Forward

SOCIALAs the world emerges from the COVID-19 pandemic, we will continue topartner with customers and suppliers who share our vision in building
equitable, sustainable communities powered by clean energy. We will
relentlessly pursue more ways to push the boundaries of innovationand play a leading role in collectively tackling climate change worldwide.

GOVERNANCE

Mario Dipp, Dean of CETYS University at the Mexicali campus
Click here to find out more.

81© 2021 Maxeon Solar Technologies

APPENDIXGOVERNANCE

Customer Engagement and Satisfaction
Management Approach
Customers are the heartbeat of any business, but for Maxeon, this isparticularly true as our products literally come to life on our customers’
homes and businesses. Strong customer relationships have a profoundeffect on our ability to expand the adoption of solar energy and engage
in the global effort to fight the effects of climate change.

savings over time – backed by extensive third-party“Listening to our customers

testing and field data from more than 35 million panels

and understanding theirdeployed worldwide.

Performance Highlights
Net Promoter Scores (NPS) are a common metric used
to track customers’ loyalty to a company. Customers

Like any good relationship, our customer relationships are built on

INTRO

who give a rating of 9 or 10 are called Promoters

expectations and needs are
critical to enable them to fulfil
their clean energy objectives.”
Mark Babcock
Chief Revenue Officer

trust. At Maxeon, we build and nurture our customers’ trust through– they are most likely to promote or recommend a

the consistency and quality of the products we deliver, the support wecompany’s products or services. Ratings of 8 and 7,

provide throughout our products’ lifecycle, and the installation partners

referred to as Passives, represent customers who are

and distributors with whom we do business.

satisfied, but not particularly inclined to promote your company.

Our Initiatives

respondents are not fully satisfied with the service offered and may
share their negative experience with others. The NPS is calculated

and continues throughout the products’ installation and lifetimeby subtracting the percentage of Detractors from the percentage

performance. Every residential and commercial panel is backed by aof Promoters. Scores above 0 are considered good and those25-year Complete Confidence Warranty, ensuring that customers canabove 50 are excellent.

absolute confidence that it will deliver more energy, reliability and82© 2021 Maxeon Solar Technologies

SOCIALA rating of 6 and below is considered a Detractor, since theCustomer satisfaction at Maxeon begins with the products we build

put their full trust in our product. Each panel is manufactured with

ENVIRONMENTAL

GOVERNANCE

APPENDIXGOVERNANCE

Customer Engagement and Satisfaction

INTRO

At Maxeon, we measure NPS for both the performance of our products

Customer Health(Customer Health) and installation partners (Partner Health) who

Maxeon is committed to ensuring our customers are happy with their systems for years

engage first-hand with our customers.

to come. We invite our customers to share their feedback on both our products and our

ENVIRONMENTAL

partners in three ways:

NPS Scores over the past five years• Installation Experience Survey – One month after the installation is completed, we conduct
80

76

a customer survey to ask how likely a customer is to recommend their Maxeon installation
partner to friends and family. Additionally, we ask for feedback on the customer experience

60

54

provided by the partner throughout the entire installation process (e.g., meeting

SOCIALcommitments, responsiveness, system design, installation phase).
• One-Year System Experience Survey – On the first anniversary of a customer’s system40

installation, we send a second survey to ask how likely the customer is to recommend our
products and to what extent the installation met the customer’s expectations.

20• Issue-To-Resolution – Our customers are always able to contact us with questions orconcerns. After a customer's query has been resolved, a survey is sent to the customer to

0
2016

2017

2018

2019

2020

GOVERNANCE

evaluate their experience.

Partner Health
Customer Health

Our NPS for Customer Health is a combination of all the responses from the threesurveys above.

83© 2021 Maxeon Solar Technologies

APPENDIXGOVERNANCE

Customer Engagement and Satisfaction
Partner Health

Looking Forward

We also conduct an annual Maxeon Partner Survey to assess how weMoving forward, Maxeon continues to value

are doing in different areas of our business. Based on feedback from

customer satisfaction. We will focus on securing

our partners, who are the installers and distributors that we workand enhancing trust with our current and future

with, we put in place an action plan to improve the partner experiencecustomers through our industry-leading warranty

across the different functions. We take partners’ feedback very seriously

and by seeking out and learning from customer

and where a comment relates to a particular issue, we will contact the

feedback. This will be achieved through our surveys

partner and do our best to solve it.

but also by keeping Net Promoter Scores part ofIn addition, similar to our approach to Customer Health, partners of
Maxeon also receive the Issue-To-Resolution Survey for any queries
they report to us.
The NPS for Partner Health consists of a combination of results fromthese surveys, with the Annual Survey carrying the most weight inthe calculation.

our staff's KPIs, something we have had in place

INTRO

ENVIRONMENTAL

SOCIAL

since we began calculating NPS in 2016.
We will continue to evolve and enhance ourcustomer engagements with the feedback received
and expand the programme into new regions andcustomer segments.

GOVERNANCE

APPENDIX

84© 2021 Maxeon Solar Technologies

Forward-Looking Statements
This Sustainability Report contains forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995, including, but not limited to: statements regarding the Company’s financial
and operating expectations, market leadership, customer value proposition and competitive advantages;
the Company’s strategic goals and plans, including relationships with existing customers, suppliers andpartners and our ability to maintain them; the legislative and regulatory environment of the solar industry;
the Company’s ability to manage supply chains and workforce. These forward-looking statements are basedon our current assumptions, expectations and beliefs and involve substantial risks and uncertainties that
may cause results, performance or achievement to materially differ from those expressed or implied by theseforward-looking statements. A detailed discussion of these factors and other risks that affect our business is
included in filings we make with the Securities and Exchange Commission (“SEC”) from time to time, including
our most recent report on Form 20-F, particularly under the heading “Item 3.D. Risk Factors.” Copies of thesefilings are available online from the SEC or on the Financials & Filings section of our Investor Relations website.
All forward-looking statements in this Sustainability Report are based on information currently available tous, and we assume no obligation to update these forward-looking statements in light of new information or
future events.

85© 2021 Maxeon Solar Technologies

Building a Better Tomorrow“By broadening our sustainability strategy to a global ESG
platform, we can make an even greater impact on thecommunities we serve. It’s a commitment inspired by ourcompany purpose, Powering Positive Change™ – our steadfast
belief that, by constantly improving ourselves, we help create abetter future for our planet, our stakeholders and our business.”
Jeff Waters
Chief Executive Officer
Maxeon Solar Technologies

For any questions on this Report, please contact us at esg@maxeon.com.
To find out more about our ESG commitments, visit our webpage here.
Our Content Index (Appendix) can be found here.
© 2021 Maxeon Solar Technologies