Sustainability Report
POWERING POSITIVE CHANGE

2021

CONTENTS

Sustainability Report 2021

INTRODUCTIONENVIRONMENTAL

SOCIAL

GOVERNANCE

03

Letters from Leadership

06

About this Report

20
		
		

Spotlight: Powering
Sustainable Luxury Hotels
with Renewable Energy38		Spotlight: Leadership
Training Programme72		

Spotlight: Partnerships for
Positive Change07

Key Highlights of 2021

Social Stewardship:
An Overview

75		

Governance Approach:An Overview

About Maxeon Solar
Technologies

Our Environmental
Responsibility: An Overview

40
		

08
		

22
		

Business Integrity and Ethics

Energy and Emissions

Occupational Healthand Safety

76

23

43
		

11
		

Sustainability Approachand Governance28

Water Management

Product Quality, Reliability
and Safety

16
		
		

Project Overview:
Taking a Staged Approach to
Our Sustainability Journey

Waste

Fair Labour andHuman Rights

80
		

30

51
		

84

Sustainable Innovation

35

Circular Economy

55

Employee Engagement

59

Learning and Development

90
		Customer Engagement
and Satisfaction

17

Targets and Performance

62

Diversity and Inclusion

66

Community Investment

71

Performance Metrics

37

Performance Metrics

					INTRODUCTION

Letter from Jeff Waters, Chief Executive Officer, andDonald Colvin, Chairman of the Board of Directors
2021 was a challenging year as the pandemic continued to disrupt

even greater impact on the communities we serve. We are confident

the global supply chain and the way business is conducted. Despite

in our abilities and remain committed to leading the sustainability

the backdrop of social and economic uncertainties in 2021, awave with our innovative solutions.

silver-lining has been that the world is taking meaningful steps toaddress climate change. At the UN Climate Change Conference

Environmental(COP26), countries were urged to align to the Paris Agreement target

Climate change is profoundly impacting the world around us, andand shift from fossil fuels to a net-zero future. New targets set byworld leaders have called for urgent collective action to address

governments around the world will increase the global pace ofthe global climate crisis. Singapore continues to remain steadfast

decarbonisation and renewable energy adoption.

in its commitment to global climate action and signed on to several
partnership coalitions during COP26, including the Global Coal to

As the global demand for renewable energy increases along with

Clean Power Transition Statement. To accelerate Singapore’s efforts

renewed climate commitments by government leaders worldwide,

against climate change, Ms Grace Fu, Minister for Sustainability

Maxeon is encouraged that our differentiated products are poweringand the Environment of Singapore, announced the launch of thethe fight against climate change in more than 100 countries. At

Singapore Green Plan 2030, a nationwide movement to advanceMaxeon, we pride ourselves in being the global leader in solar

Singapore’s agenda on sustainable development, charting ambitious

innovation. This year, we launched the solar industry’s longest

targets to align with the UN’s 2030 Sustainable Development Agenda

and most comprehensive warranty of 40 years. Maxeon’s latest

and the Paris Agreement’s net-zero aspiration. As a solar company,

contribution to growing a global circular economy.

we are heartened with the progress of COP26 and Singapore’scommitment to the Green Plan 2030. As a global company with its

Today, a growing number of corporations have begun to alignheadquarters in Singapore, we are pleased to have released ourEnvironmental, Social and Governance (ESG) to the core of theirfirst set of 2030 ESG long-term targets in 2021 in support of thebusiness and investment decisions, and governments aroundglobal transition to clean energy and net-zero emissions. Maxeon is

the world continue to align policies and procurement decisions

Powering Positive ChangeTM.

to sustainability. Maxeon has been a Signatory of the United
Nations Global Compact, the world’s largest voluntary corporate

As ESG continues to affect companies in key business andsustainability initiative, since December 2020. By broadening ourinvestment decisions, in 2021 the Singapore Exchange (SGX) unveiledsustainability strategy to a global ESG platform, we can make an

its roadmap for mandatory climate disclosures for listed companies

INTRODUCTION

Letter from Jeff Waters, Chief Executive Officer, andDonald Colvin, Chairman of the Board of Directors
in Singapore. Amidst the urgent call for climate disclosures, weThis year, we are honoured to have won the Silver Award inhave reviewed Maxeon’s ESG plans and will consider adopting the

Asia’s Best Sustainability Report (Human Rights) category by Asia

climate risk reporting framework recommended by the Task Force on

Sustainability Reporting Awards (ASRA) 2021, and we are resolved to

Climate-Related Financial Disclosures (TCFD).

always do better.

SocialGovernanceMaxeon has always been dedicated to being a responsible corporate

At Maxeon, we understand the importance of trust in achieving

citizen with a focus on the social wellbeing, human rights andour goals as a company, and therefore we place a high priority

safety of our people and communities. Our Occupational Healthon complete transparency and integrity across our operations

and Safety (OHS) commitment is deeply engrained in our culture as

and governing policies. Being vigilant on corporate behaviour andexpressed through our policies, procedures and trainings. Safety

conducting business in an ethical manner with integrity will ensure

is of paramount importance at Maxeon and will continue to bethat we build a strong foundation for our business.

embedded in all our operations.
On behalf of the Board of Directors and Executive Leadership TeamWe strongly support our Global Human Rights Policy whichof Maxeon Solar Technologies, we thank our Staff, Partners andaligns with the Universal Declaration of Human Rights, theStakeholders for the strong support, and we look forward to ourConventions of the International Labour Organization (ILO),

continuing partnership.

the UN Guiding Principles on Business and Human Rights,
the UN Global Compact (UNGC), and the Organisation for
Economic Co-operation and Development (OECD) Guidelines
for Multinational Enterprises.

Jeff Waters

Donald Colvin

Chief Executive Officer

Chairman of the Boardof Directors

INTRODUCTION

Letter from Lindsey Wiedmann, Chief Legal Officer,
Global ESG Executive Leader
We are delighted with the progress Maxeon has made in the pastof the Singapore Low Carbon Network, launched as part of PwC

year and look forward to Powering Positive Change in a sustainable

Singapore’s Asia Pacific Centre for Sustainability Excellence. The

and innovative way. As a solar company, we have a responsibility

network aims to support the Singapore Green Plan 2030 andto fight climate change and must continue to innovate to create anbrings together corporations across Singapore with ambitions toeven greater impact on communities around the world. To further

decarbonise. We are committed to helping our Singapore community

our mission, Maxeon has collaborated with the National University

achieve their decarbonisation goals and excited to work withof Singapore’s Solar Energy Research Institute of Singapore (SERIS)

other industry leaders and contribute our insights in solar energy

on two research projects in 2021 and the research is currently

technology as a means for transformation to a low-carbon economy.

ongoing. We also celebrate the launch of the solar industry’s mostcomprehensive warranty of 40 years, evidence that we stand behindthe longevity of solar energy production that our panels so reliably
provide. And we are quite pleased to now provide our stakeholders
with our panels’ energy payback time, which is the period of
operating time required for an installed Maxeon panel to generate
the same amount of energy used to get it to production. Data
supporting what we all know, that Maxeon makes the best andmost sustainable panels.
In the wake of unprecedented market momentum behind ESG in
2021, investors, corporations and government leaders have raised
expectations for progress on climate pledges, alongside othersocial issues such as diversity, inclusion and employees’ wellbeing.
To demonstrate Maxeon’s commitment as a United Nations Global
Compact Signatory, in 2021 we established our 2030 ESG long-termtargets in alignment with the UN Sustainable Development Goals(SDGs) and providing a visible roadmap of our journey towards
decarbonisation and a sustainable future. In 2021, Maxeon also
signed on as one of the twelve inaugural organisational members

Maxeon strives to maintain its sustainability leadership positionin the solar industry by continuing our development of more
efficient, sustainable and longer-lasting panels. As more countries
and corporations pledge to achieve net-zero emissions, renewableenergy will play a pivotal role in enabling this transition. Maxeon
is delighted to be a key player in the race to achieving net-zero bysupporting the growing demand for solar energy coupled with socialand governance best practices.
As we journey towards our 2030 ESG long-term targets, we willcontinuously assess our yearly performance and progressively
improve on our sustainability efforts. With the rising demands foraccountability and climate-related disclosures, Maxeon will also
consider reporting climate-related risks disclosures and aligningwith the Task Force on Climate-Related Financial Disclosures (TCFD)
framework in our next sustainability report.
We thank our internal and external stakeholders for their support
in our sustainability journey and look forward to continued
collaboration in our future endeavours.

Lindsey Wiedmann
Chief Legal Officer,
Global ESG Executive Leader

INTRODUCTION

About this Report

INTRO

Reporting Scope and Period

Reporting Standards

Publication Date

This is the second annual Sustainability Report (“Report”)

This Report has been prepared in accordance with theThis Report is published on

published by Maxeon Solar Technologies, Ltd (theGlobal Reporting Initiative (“GRI”) Sustainability Reporting

30 June 2022. The report can be“Company” or “Maxeon”), (NASDAQ: MAXN).

Standards: Core option and is aligned to the Sustainability

found online on our website.

Accounting Standards Board (“SASB”): Solar Technology
Our Sustainability Report, a follow-up from to our last

Project Developers Standard and Singapore Exchangereport published on 30 June 2021, covers the Company’s("SGX") Sustainability Reporting requirement. Furthermore,

performance with regards to environmental, social andwe have aligned our Report to the United Nations

governance (“ESG”) considerations for the financial year

Sustainable Development Goals (“UN SDGs” or “Globalthat ended on 31 December 2021 (“2021” or “FY 2021”).

Goals”) and continue to be a committed Signatory of the

As we encompassed our full-year performance into thisUnited Nations Global Compact (“UN GC”).

Report, we present our sustainability strategies,
ambitions, and progress in material ESG topics.

Quality of Report

Through our Report, we aim to widen our sustainability

Since our inaugural sustainability report published incommitment across our valued stakeholders, including

2021, we have engaged external consultants to conduct

our employees, investors, customers, business partners,

an annual gap analysis to ensure the quality of our

suppliers and contractors, regulators, and thesustainability report. Whilst Maxeon has not sought

communities we operate in.

external assurance for its report, we have established

ENVIRONMENT

Feedback
Maxeon welcomes anyquestions or feedback on
this Report. Our Global
Environmental, Social and

SOCIAL

Governance (ESG) Lead, StellaChan, can be contacted at
esg@maxeon.com.

GOVERNANCE

robust systems to uphold and ensure the quality of
information reported.
APPENDIX

6© 2022 Maxeon Solar Technologies

INTRODUCTION

Key Highlights of 2021
OVERALL
Committed to sustainability longterm targets pertaining to all material
topics, to achieve by 2025 and 2030,
with 2020 as our baseline year
Became an inaugural member of
the Singapore Low Carbon Network,
launched in 2021 as part of PwC
Singapore’s Asia Pacific Centre for
Sustainability Excellence
Formed Partnerships for Positive
Change including Solar Panels for
Espressone GmbH, Urban Solutions
with Solar Energy Research Instituteof Singapore and National Universityof Singapore

INTRO

ENVIRONMENTAL
Completed Energy Payback Timeassessment for our solar panels
Powering Sustainable Luxury
Hotels with Renewable Energy
Transitioned from IBC panels to
the Performance Series (“P-Series”)
panels at our Mexico facility

SOCIAL
Our newly introduced Maxeon
Leadership Training Programme
ran its first course this year
Introduced Career andDevelopment Conversations andIndividual Development Plans (IDP)

GOVERNANCE
Powered 899 MW of solar energy
in 2021
Introduced our industry-leading
40-year solar panel warranty inearly 2022
Opened new Reliability TestingLab in Malaysia to expand inhouse
testing and quality control capabilities

ENVIRONMENTSOCIALIntroduced Maxeon Air System, adisruptive new technology
Identified zero incidents of bribery,corruption, or other ethical issues
GOVERNANCE

APPENDIX

7© 2022 Maxeon Solar Technologies

INTRODUCTION

About Maxeon Solar Technologies

INTRO

Headquartered in Singapore, Maxeon designs and manufactures
Maxeon® and SunPower® brand solar panels. We have sales
operations in more than 100 countries, which operate under
the SunPower brand in certain countries outside of the UnitedStates. As a leading solar innovator, we have access to more than

ENVIRONMENT

1,000 patents and have created two best-in-class solar panel
product lines.
As a Signatory to the United Nations Global Compact and an avid
supporter of the UN Sustainable Development Goals (UN SDGs),
our industry-leading green credentials for our panels and LEED-SOCIALcertified facilities are a testament to our commitment to being at
the forefront of solar sustainability.

GOVERNANCE

APPENDIX

8© 2022 Maxeon Solar Technologies

INTRODUCTION

About Maxeon Solar Technologies

INTRO

GLOBAL SALES & INSTALLATION PARTNERS

This year saw the closure of one of our facilities located in France
due to planned restructuring. As a result, we currently have fiveproduction facilities located in the Philippines, Mexico, Malaysia
and France. Maxeon’s product reach extends to Africa, Asia,
ENVIRONMENT

Oceania, Europe, North America and South America, ensuring
our products are entrenched globally and across solar power
markets through our trusted network of more than 1,700
partners and distributors. We leverage a 35+ year history ofpushing the boundaries of innovation within the solar industry,
propelling us as pioneers in sustainable solar manufacturing

SOCIALwhilst achieving numerous awards for our technology. Throughour operations and purpose, we have enabled more than one
million customers to make a positive impact on the world bytransitioning to solar energy.

500*

U.S. & Canada

For more information on our business, please refer to our28

Mexico & LATAM

930

EMEA

494

Asia-Pacificwebsite at www.maxeon.com.

GOVERNANCE

26%

1%

48%

25%

APPENDIX*

9© 2022 Maxeon Solar Technologies

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

INTRODUCTION

About Maxeon
Solar Technologies

INTRO

FUNDAMENTALLY DIFFERENT,AND BETTER

A Leader in Solar Innovation#1 Solar Panel Efficiency1

in the market, fitting more energy
in less space

Maxeon’s comprehensive solar panel portfolio ensures that all
customers’ energy demands may be met, across the residential#1 Lowest Degradation Ratesolar, commercial solar and solar power plants markets. Our
panel product lines are the Maxeon line of interdigitated backcontact (IBC) solar cells and panels and the Performance line ofshingled solar cells and panels. We provide our customers with

Higher Efficiency at a Value Price

Patented technology, G12 wafers, China JV

Enhanced Energy Yield

in the solar industry2Less soiling/shading loss (row spacing),
bi-facial, greater power density

Leading Durability2

Reliability Advantagesin Harsh Environmentswith a 40-year warranty3, top module
reliability performer4

an industry-leading, 25-year power and performance warranty.

MAKING THE CONVENTIONALEXCEPTIONAL

In early 2022, we introduced a 40-year warranty for our

ENVIRONMENT

Comprehensive warranty, top module
reliability performer4

SunPower Maxeon panels as a testament to our highly reliable

SOCIALsolar technology. Our new warranty, the longest in the industry,

Ultra-pure silicon on a patented
copper foundation

assures our customers more years of clean energy production

Patented, unique mono PERC
shingled cell panel design

and reduced environmental impact, providing customers witheven greater assurance as they transition to solar energy.

GOVERNANCE

10© 2022 Maxeon Solar Technologies

1.

Based on search of data-sheet values from websites of top 20 manufacturers per IHS, as of January 2021.

2.

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

3.

SunPower Maxeon solar panels are backed by a 40-year warranty. Subject to terms and conditions. Not available in all
countries. 40-year warranty requires registration, otherwise our 25-year warranty applies.

4.

SunPower panels have been identified as Top Performers in the PVEL PV Module Reliability Scorecard since 2017:https://modulescorecard.pvel.com/.

APPENDIXINTRODUCTION

Sustainability Approach and Governance

Our Approach to Sustainability
As a pioneer in sustainability innovation within
the solar industry, we believe in setting a high bar
for the industry in combatting climate change andits detrimental effects. We continuously strive

INTRO

OUR PURPOSE

Powering Positive
Change™

ENVIRONMENT

towards creating a positive and consequential
impact on the environment, the energy industry,
our customers, the communities we serve

OUR VALUES

and operate in, and beyond. Our approach tosustainability is governed through our purposeof Powering Positive ChangeTM, as depicted on

We push theboundaries

We hold ourselves
to a higher standard

We thrive
together

SOCIALthe right.

GOVERNANCEOUR SUSTAINABILITY PILLARS

11© 2022 Maxeon Solar Technologies

ENVIRONMENTAL

SOCIAL

GOVERNANCE

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

Creating positive value
in society 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 Governance

Governance and Culture in Driving ESG
Our ESG strategies, initiatives and performance are supervisedby our Executive Leadership Team (ELT) and further governed

For more information on our governance framework and financial
performance, please refer to our Annual Report.

by our Nominating and Corporate Governance Committee,

Actively Engaging Stakeholders

which consists of two independent directors and two directors

Engaging with and understanding the needs of our stakeholders

appointed by our shareholders, TotalEnergies and TCL Zhonghuan
Renewable Energy Technology (TZE). As we strive towards
remaining abreast of macro ESG trends, opportunities and risks,
our Global ESG team and Chief Legal Officer, who is also ourGlobal ESG Executive Leader, provide quarterly updates andpresentations to the Committee on global ESG shifts, as wellas our own ESG initiatives and progress.
We have established a formal ESG structure governing thefunctions of independent operations, through a Global ESG Lead
hired by the Singapore headquarters alongside our Legal team,to effectively solidify our sustainability approach, framework andefforts. As a result, we can effectively cross-collaborate within
the organisation to execute our ESG ambitions and track ourprogress. Maxeon has embedded sustainability into its company
culture, as reflected in Maxeon’s Corporate Key Results (KRs) inwhich ESG was identified as critical to achieving broader
company goals.

is an essential part of our sustainability journey. We identify ourmaterial stakeholders based on the impact our business has onthem, as well as their role in our business. In 2021, we conducted
an extensive stakeholder engagement exercise involving both© 2022 Maxeon Solar Technologies

Nominating and Corporate
Governance Committee

Executive Leadership
Team

ENVIRONMENT

Chief Legal Officer,
Global ESG Executive
Leaderinternal and external stakeholders. Through in-depth interviews

SOCIALand online surveys, we gathered insights that informed ourmateriality assessment. In addition, we also conducted an

Global ESG Team

employee survey to understand perceptions around the
Maxeon brand, vision and purpose. A synopsis of our ongoingengagement with different stakeholders is presented on the next
page as well as in the Materiality Assessment Process section andother sections of this Report.

GOVERNANCE

We continuously engage with our stakeholders to better
understand and identify their needs, ultimately aiding us on oursustainability journey. We continue to report on the material
topics we identified from our extensive materiality assessment
in 2021, as they remain relevant to us as an organisation, and to
our stakeholders.

12

INTRO

APPENDIXINTRODUCTION

Sustainability Approach and Governance

INVESTORSStakeholder Priorities

Platforms forEngagement•

Investor
and analyst
presentations

INTRO

NON-PROFITSREGULATORS AND
GOVERNING AGENCIESCUSTOMERSEMPLOYEES

•

Media

•

Media

•

Website••Questionnaires•

Press releases•

Press releases•

EmailsIndustry events•

Industry events•

Emails••Regular meetingsand calls

Company
Intranet

Regular emails•

Regular meetingsand calls•

Regular Townhalls(All Hands Meetings)

Regular meetingsand calls•

Regular emails

On-site visits,
installation andmaintenance

•

•

•

•

Industry events

ENVIRONMENT•

Annual general
meetings•

Quarterly reports•

Press releases•

Energy andEmissions•

Energy andEmissions•

Energy andEmissions•

Energy andEmissions•

Energy andEmissions•

Circular
Economy•Fair Labour andHuman Rights

•

Waste

•

Water Management•

Water Management

•

•

•

Waste

•

Circular Economy

Diversity andInclusion

Fair Labour andHuman Rights

Occupational Healthand Safety••

Occupational Healthand Safety••

Fair Labour andHuman Rights•

Fair Labour andHuman Rights•

Fair Labour andHuman Rights•

Occupational Healthand Safety

Business Integrity
and Ethics••

Diversity andInclusion•

Employee
Engagement•

Business Integrity
and Ethics•

Fair Labour andHuman Rights

Sustainable
Innovation•

Business Integrity
and Ethics•

Product Quality,
Reliability and Safety•

Learning andDevelopment•

Sustainable
Innovation•

Product Quality,
Reliability and Safety•

Customer
Engagement andSatisfaction•

Community
Investment•

Business Integrity
and Ethics•••

Diversity andInclusionCommunity
Investment
Business Integrity
and Ethics

SOCIAL•13

SUPPLIERS© 2022 Maxeon Solar Technologies

Product Quality,
Reliability and Safety

GOVERNANCE

APPENDIXINTRODUCTION

Sustainability Approach and Governance

Our Commitment to the SDGs
Maxeon has been a Signatory to the United Nations Global
Compact (UNGC), the world’s largest voluntary corporate
sustainability initiative, since December 2020. As a purposedriven global organisation, we believe that by broadening oursustainability strategy to a global ESG platform, we can make aneven greater impact on the communities we serve. We hope thatthrough our involvement, we can maximise our impact by joining
the 12,000+ companies across 160 countries striving to better

INTRO

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 totransition smoothly to a low-carbon future through community andcapacity building is a key priority. We warmly welcome Maxeon Solar
Technologies to the United Nations Global Compact and look forward
to working alongside them to take decisive action for the SDGs.

the world through their commitments to the UNGC. We continue
to focus on the four previously identified key SDGs most relevant
to our business in creating a sustainable and positive impact:•

SDG 7 – Affordable and Clean Energy•

SDG 10 – Reduced Inequalities•

SDG 12 – Responsible Consumption and Production•

SDG 16 – Peace, Justice and Strong Institutions

Esther Chang
Executive Director, Global Compact Network Singapore

ENVIRONMENTSOCIAL

GOVERNANCE

These SDGs are consistent with our purpose of Powering Positive
Change™. Furthermore, they are aligned with our Maxeon values,
defining our company, culture and people, ultimately governing
our interactions with our customers, investors and suppliers.
These selected SDGs are factored into our long-term targets tofurther inform our sustainability strategies.

14© 2022 Maxeon Solar Technologies

APPENDIXINTRODUCTION

Sustainability Approach and Governance

INTRO

Materiality Assessment Process
Sustainable Innovation

At Maxeon, we recognise the importance of accurately

Occupational Health and Safety

identifying material issues relating to a company’s business,
people and stakeholders, as a critical input to inform corporate
assessment for our inaugural Report for 2020, we continue toreport on the identified material topics as they remain relevant
to our organisation. This work helps to continuously refine our
ESG approach and our efforts to reflect our ESG impact andinfluence on the decisions of our stakeholders.

Waste

ENVIRONMENT

Learning and Development

Significance of Impact

sustainability strategy. As we conducted a robust materiality

Product Quality,
Reliability and Safety

Fair Labour and Human Rights

Business Integrity and Ethics

Energy and Emissions
Employee Engagement
Circular Economy

Customer Engagement
and Satisfaction

SOCIAL

Water Management

The materiality assessment process conducted for our inaugural

Diversity and Inclusion

Report in 2021 included analyses to identify key industry-level
ESG topics, interviews with internal and external stakeholders,and validation workshops to decipher the relevant ESG issues forCommunity Investment

Maxeon through the insights of an array of key stakeholders.
The following material topics were identified using a precautionary
principled approach, and were established to be the areasof greatest potential impact and influence for Maxeon on theenvironment, economy and society:15© 2022 Maxeon Solar Technologies

Influence on Decision Making

GOVERNANCEENVIRONMENTAL

SOCIAL

GOVERNANCE

•
•
•
•

•

•
•

Energy and Emissions
Water Management
Waste
Circular Economy

•
•
•
•
•

Occupational Healthand Safety
Fair Labour andHuman 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

Project Overview: Taking a Staged Approachto Our Sustainability Journey

FOUNDATIONAL

2021

INTRO

By 2025

Join United Nations
Global Compact

By 2030

Conduct Energy Payback
Time Assessment

Climate Scenario
Assessment

Staff Volunteering

Report to CDP
Carbon Reporting

Perform Materiality
Assessment and Prepare
Sustainability Report
Develop GHG
Inventory (Scope 3)
Community
Partnerships

Recognition/Awards in
the Sustainability SpaceA Leader in
Sustainability
Performance

ENVIRONMENT

Develop Net Zero Carbon Roadmap(decarbonisation strategy)
SOCIAL

Supply Chain
on Blockchain

Developed LongTerm Targets

GOVERNANCE

Adopt TCFD
Recommendations

16© 2022 Maxeon Solar Technologies

Commence Setting Science
Based Targets (SBTi)
Perform Impact
Measurement on SDGs

Commit to RE100

Align with and Join
SBTi

LEADERSHIP

Explore Sustainable
Finance

APPENDIXINTRODUCTION

Environmental Long-Term Targets
Material Topic

MetricEnergyintensity (MWhconsumed /MW produced)

2020

INTRO

2025

254

2030

10%

improvementfrom 2020

Narrative Description

WATER
MANAGEMENT

17

Water intensity(m3 used per
MW produced)

WASTE

Waste Recycling

CIRCULARECONOMY

Cradle to Cradle
certification(for Maxeon
products)© 2022 Maxeon Solar Technologies

160

3,874

80%

Bronze10%

improvementfrom 2020

2.5%

improvementfrom 2020

5%

improvementfrom 2020

SilverLead the global transition to clean
energy by enabling our customers toachieve their GHG / net zero targets•

Maximise Maxeon’s use of renewables(on site / virtual PPAs)•

Improve Maxeon’s own energy intensity
per site / product line•

Improve Maxeon’s own emissions
intensity by per site / product line•

Maxeon’s sites will continue to report
Scopes 1, 2, 3 and 4 emissions

20%
improvementfrom 2020

ENERGY AND
EMISSIONS
Emission
intensity (tCO2e/ MW produced)•

20%
improvementfrom 2020

5%

improvementfrom 2020

20%

improvementfrom 2020

Gold

Maxeon is committed to being at theforefront of creating a Circular Economy inthe solar industry, as evidenced by:•First in the industry to be
Cradle to Cradle Certified ®

•NSF Landfill-Free Verification•

Declare label2021 Performance
Our energy intensity
increased to 268MWh
consumed /MW produced.
ENVIRONMENT

Our emissions intensity
increased to 167 tCO2e /MW produced.

SOCIALOur water intensity
increased to 3,876 m3 /MW produced.

Maxeon will continue to be a leader inconservation and will improve its water
intensity and recycling of waste figures
every year, achieving 5% improvement inwater intensity and 10% in waste recycling
by 2030.

Decrease in overall
recycling rate to 74%
of total waste recycled.

Maxeon will estimate its carbon footprint(g CO2/kW) and Energy Payback Time (years(or fractions thereof)) to make Maxeon’s
environmental impact more accessible tothe public.

Bronze status of
Cradle to Cradle
Certification wasmaintained.

GOVERNANCE

APPENDIXINTRODUCTION

Social Long-Term Targets
Material Topic

Metric

INTRO

2020

2025

OCCUPATIONALHEALTHAND SAFETY

TRIR(total recordable
incidence rate)

0.63

FAIR LABOUR
AND HUMAN
RIGHTS

Incidents /Traceability

Zero cases of verified noncompliance with humanrights laws

DIVERSITY AND
INCLUSION% of people
leaders who
identify as female

32%

COMMUNITYINVESTMENT

Maxeonvolunteering days

EMPLOYEEENGAGEMENT18

We strive for an
engaged workforce,
where people havemeaning in theirwork and can learn
and grow© 2022 Maxeon Solar Technologies

2030

0.63

2021 Performance

Maintain industry leading
position

Reduction from 2020 number

10%

TRIR increased to 0.81

Traceability ofsupply on blockchain suchthat information is available
within 4 hours

Maintain zero cases ofverified non-compliancewith human rights laws withenhanced traceability

Working towards
increasing traceability ofsupply chain by putting iton the blockchain

34%

37%

Decreased inpercentage of females in
Executive Leadership Teamto 25%

N/A

5,000

7,500

Increased Maxeon
volunteering days
from 2020• No leadershipdevelopment programme• No career and development
planning framework• Performance reviews occur
twice yearly, feedback ad-hoc• 90% of eligible
employees passed throughthe leadership development
programme• 70% of employees had a careerand development discussion
with their leader• Structured feedback isincorporated into our
performance review process,tied to our leadershipcapabilities and company values• 95% of eligible
employees passed throughthe leadership development
programme• 80% of employees had a careerand development discussion
with their leader• A continuous feedback culture
exists amongst our workforce,
driving learning and growth

ENVIRONMENTSOCIAL

GOVERNANCE

Rolled out Leadership
Training Programme andincreased career anddevelopment discussions
amongst employees
APPENDIXINTRODUCTION

Governance Long-Term Targets
Material Topic

MetricNet Promoter Scores (NPS)
for Customer Health

CONSUMER
ENGAGEMENT AND
SATISFACTION
NPS for Partner Health

PRODUCT QUALITY,RELIABILITY AND
SAFETY

Maximum number ofdefective parts per million
in sales contracts (DPPM)SUSTAINABLEINNOVATION

Warranty and efficiency(one can calculate Carbon
Positivity with this andEnergy Payback Time)

BUSINESS INTEGRITYAND ETHICS

Incidents of corruption(defined as bribery ofa public official)

INTRO

2020

2025

2030

2021 Performance

54

62

70

57

(EMEA only)(Global)(Global)(Global)

76

70

80

72

(EMEA only)(Global)(Global)(Global)

2000

30%

50%

187

DPPM

reduction from 2020

reduction from 2020

DPPM

40 years

40 years@24% efficiency@25% efficiency

25 years

Zero
substantiated incidents

ENVIRONMENTSOCIALIn early 2022,
we have introduced our
40-year warranty@22.7% efficiency
GOVERNANCE

Maintain performanceand enhance controls

Maintain performanceand enhance controls

Zero incidentsof corruption in FY 2021

APPENDIX

19© 2022 Maxeon Solar Technologies

ENVIRONMENTAL

Spotlight: Powering Sustainable Luxury Hotels
with Renewable Energy

ENVIRONMENTAL

Spotlight: Powering Sustainable Luxury Hotels
with Renewable Energy
Traditionally, the hotel industry has lagged behind other real

In 2021, Svensk Solenergi, the Swedish Solar Energy Association,

estate sectors in the adoption of energy-efficient measures .

recognised Slottsholmen with an honourable mention for

However, Slottsholmen on Water, a Maxeon client in thethe Solar Energy Prize Facility of the Year, as the hotel utilises

hospitality industry, has been a trailblazer in setting the standard

renewable energy to power their facilities. Slottsholmen is aon how hotels can be truly more sustainable. The hotel, whichmodel for sustainable hotels in Europe and across the globe andfloats on the Västervik marina in Sweden, installed a total of 412

is a testament to Maxeon’s vision of Powering Positive Change™.

1

INTRO

ENVIRONMENT

SunPower Maxeon solar panels on their rooftop. The owners®

of Slottsholmen wanted a reliable onsite renewable energy
source for the long term. Maxeon enabled this goal through the
installation of durable, sustainable and high-performing solar
SOCIALpanels. In addition to producing energy that helps power the
hotel’s three buildings daily, the panels also power the onsite
desalination plant and geothermal heating system within the
hotel premises.
The system has the capacity to generate 151,000 kWh of clean
energy per year, enabling Slottsholmen to be self-sustaining
for most of the year. To further their self-sufficiency, they are
installing 320 kWh of lithium iron phosphate (LFP) batteries,
which in tandem with the solar panels will save approximately
90 tons of CO2 per year.

1.

The New York Times (2020), Hotels Lag in Energy Sustainability.
One Project May Change That, https://www.nytimes.com/2020/11/10/business/
hotel-marcel-energy-efficient.html

21© 2022 Maxeon Solar Technologies

GOVERNANCE

Slottsholmen on Water, located at the heart of Västervik, Sweden, is a primeexample of how Maxeon is working with companies across various sectors to
improve sustainability and reduce carbon emissions through the use of our
SunPower Maxeon panels.

APPENDIXENVIRONMENTAL

Our Environmental Responsibility: An Overview

Responding to the Climate Crisis
The Intergovernmental Panel on Climate Change (IPCC) Sixth
Assessment on Climate Change has underscored the need forurgent and drastic action to mitigate disastrous climate impacts.
Climate scientists and leaders continuously urge for a transition
towards cleaner energy sources as a key catalyst in limiting ourglobal temperature from rising beyond 1.5°C. This has resulted
in both national and international efforts across governments
and businesses, as they strive towards decarbonisation and awayfrom traditional fossil fuels in favour of renewable sourcesof energy.

Our panels, currently installed in more than 100 countries,
power homes, businesses, private as well as public spaces withsolar energy, reducing our dependency on fossil fuels. As morecountries, governments and corporations pledge to achieve
net-zero emissions, solar energy will play a pivotal role in enabling

ENVIRONMENT

this transition. Maxeon is excited to be an important player in therace to achieve net zero by supporting the burgeoning demand
for renewable energy.
In 2021, Maxeon was one of the 12 inaugural organisational
members of the Singapore Low Carbon Network, launched as part

SOCIALof PwC Singapore’s Asia Pacific Centre for Sustainability Excellence.

These trends enforce Maxeon’s commitment to achieve holistic
sustainability across its business and value chain, whilst
partnering with clients to help them achieve their climate
targets and ambitions.

Maxeon: An Inaugural Signatory to the Singapore
Low Carbon Network
Maxeon continues to maintain its leading position in the solar
industry by developing more efficient, sustainable and longerlasting panels, whilst upholding the highest health and safety
standards. In so doing, we aim to transform the world’s economy
into one that employs low carbon energy sources.
22

INTRO

© 2022 Maxeon Solar Technologies

The network supports the Singapore Green Plan 2030 and aims
to bring together enterprises and organisations across Singapore
with ambitions to decarbonise. We are delighted to contribute to
the network with our insights into solar energy technology andhope to strengthen an ecosystem of committed industry leadersin the transition to a low-carbon economy and world.

GOVERNANCE

In addition to integrating sustainability into all facets of ourbusiness processes, we have established long- and medium-termtargets on our journey towards decarbonisation.
APPENDIXENVIRONMENTAL

Energy and Emissions

The recent COP26 in Glasgow at the end of 2021 emphasised

INTRO

Our Initiatives

the urgent need for the global economy to curb their emissions
to achieve the 1.5°C goal of limiting global warming. As allorganisations are responsible for meeting this goal, at Maxeon
we actively partner with corporations to further their efforts to
reduce carbon emissions through the adoption of solar and anincreased reliance on renewable energy. Moreover, we remaincommitted to improving our own energy and emission intensity
by 20% by 2030, in comparison to our 2020 baseline year.

Improving Energy Efficiency
Energy efficiency remains a key step to reducing our carbon
footprint as it eliminates the need to offset our carbon emissions
in the first place. Solar installations from previous years havehelped Maxeon on its journey towards decarbonisation.
In the Philippines, we maintained our LEED Gold Certification in
2021 through the installation of solar panels in previous years

Management Approach
As a corporate citizen, we have a responsibility to manage ourown carbon footprint. Maxeon assesses our emissions at eachof our facilities annually. This approach allows us to understandour journey towards achieving greater energy efficiency whilst

ENVIRONMENT

and other energy-efficient installations in our facility, including

SOCIAL

conversion of halogen to LED lamps at the perimeters of the
facility, installation of Variable Frequency Drives (VFDs) in our
motors, replacement of cooling fan blades and other energy
optimisation projects.

leveraging technology and automation to reduce our

GOVERNANCE

carbon footprint.

APPENDIX

Energy-Efficient Installations

23© 2022 Maxeon Solar Technologies

ENVIRONMENTAL

Energy and Emissions

In our Mexico facility, SPMX1, energy-efficiency measures suchas LED lighting retrofits have helped to maintain its LEED Gold
Certification in 2021. The primary manner by which we achieve
this certification is through the productive use of energy in our
motors through the installation of Variable Frequency Drives(VFDs). The energy-efficiency programmes at our plant in Mexico
resulted in 105,413 kWh of energy savings in 2021.

INTRO

Technology and Automation as Enablers
In the third quarter of 2021, we began the conversion of therooftop at SPMX1 in Mexico from Maxeon’s IBC panels to the
Performance Series (P-Series) panels. In addition, by 2022,
90% of our process will be automated, directly increasing our

ENVIRONMENT

production efficiency with more quality products and improving
the safety processes.

SOCIAL

Installation of VFDs in Our Motors to Control the
Cooling Tower

Performance Line Solar Panels Rooftop Installations

GOVERNANCE

Leveraging Solar Energy for Our Operations
As a solar panel manufacturer, we constantly seek new ways
to power our operations using the panels we provide to ourcustomers. We aim to increase the installation of solar panels
wherever possible across our facility sites.

24© 2022 Maxeon Solar Technologies

APPENDIXENVIRONMENTAL

Energy and Emissions

INTRO

CASE STUDYCASE STUDY

Solar Across Car Parks and Organic Gardens
in Mexico

Renewable Energy in Our Philippines Facility

At our Mexico manufacturing facilities in SPMX1, we haveinstalled our solar panels atop our carparks and organic garden.
In 2021, we installed 11kW roof panels at SPMX2, delivering an
additional 1.875MW of energy monthly to our facility.

At our Philippines site, we installed solar panels on the facility’s
south main roof, carpark and security posts. We also operate
SunPower-branded, solar-powered golf carts to transport
employees within the site. These solar installations amount toan approximate 0.2 MW energy generated annually.

ENVIRONMENTSOCIAL

Solar panels installed
as part of our‘Carport project’ in our
Mexicali plant (SPMX1)

Solar panels installed
atop our organic garden25© 2022 Maxeon Solar Technologies

Installation of Canteen Solar Roofing

Solar Carport
GOVERNANCE

Installation of Solar Panels at the
Security Post

CEO Jeff Waters with the FAB 4 team in
our solar-powered golf cart

APPENDIXENVIRONMENTAL

Energy and Emissions

INTRO

8,413,603 tCO2e
avoided emissions*

Performance Highlights
In 2021, we consumed 240,832 MWh of energy across all our
manufacturing sites. Our total emissions are estimated at
150,303 tCO2e, comprising Scope 1 (580 tCO2e), Scope 2 (149,282

Equivalent to negating greenhouse gas emissions from:

tCO2e) and Scope 3 (441 tCO2e) emissions. Our Scope 3 boundary

ENVIRONMENT

is currently limited to Business Travel (Category 6) and Employee
Commute (Category 7).
In 2021, our performance resulted in an energy intensity of 268

2.2
1.6 million
million

1.8 million

MWh per MW produced and an emissions intensity of 167 tCO2e

Passenger vehicles driven
for one year

per MW produced. While our overall energy consumption and ouroverall GHG emissions saw a reduction from 2020, our energyHomes' electricity
use
Passenger
vehicles driven
for
one
year
for one year

1 trillion

Number ofsmartphones charged

SOCIALintensity as well as our emissions intensity saw an increase. This is
primarily due to the decreased MW production output, showing a

Equivalent to carbon sequestered by:

17% decrease in MW produced in 2021, compared to 2020.

GOVERNANCE

Through our production capacity of solar solutions, we haveachieved the avoidance of an estimated 8,413,603 tCO2e
in 2021.

139 million

Tree seedlings grownfor 10 years

10 million

Acres of U.S. forests
in one year
APPENDIX*

26© 2022 Maxeon Solar Technologies

Calculated using EPA Greenhouse Gas Equivalencies Calculator

ENVIRONMENTAL

Energy and Emissions

EPBT
Including Local Grid Efficiency and Recycling Gains

0.29
0.58

0.35
0.70

0.23
0.47

0.45
0.92

INTRO
0.34
0.69
0.25
0.51

0.13
0.27

0.38
0.77

0.43
0.88

Energy Payback Time (including local grid efficiency)
To better understand the efficiency and performance of our
products, we have engaged an external consultant to perform
an assessment of our solar panels' energy payback time (EPBT).
0.26
0.53

EPBT is the period required for a renewable energy system to

ENVIRONMENT

generate the same amount of energy that was used to produce
the system itself. The assessment additionally investigated thecumulative energy demand (CED) over all life cycle stages of

COUNTRYIRRADIATIONGRID EFFICIENCY

our panel and also took into account local grid efficiencies forGermany (Frankfurt)

1175

38.34%

different global locations.

Japan (Tokyo)

1226

37.22%

China (Shanghai)

1271

32.04%USA (Washington)

1456

34.36%In the assessment performed on Maxeon’s energy usage data,
the energy requirements for the production of Maxeon solar

The EPBT ranges from 0.13 - 0.45 years fora ground-mounted system and 0.27 - 0.92
years for a residential rooftop system.

panels were determined to be exceptionally low, as comparedto the solar energy these panels produced with an overall result
providing an EPBT of less than a year. Therefore, energy produced

SunPower Maxeon 3 Ground Fixed Tilt 50 MW
SunPower Maxeon 3 Residential Rooftop 8 kWpover our technology’s lifetime far exceeds the energy required in

France (Marseille)

1623

27.30%

Australia (Sydney)1675

30.65%USA (San Francisco)1714

34.36%

Italy (Rome)

1717

42.14%

India (New Delhi)

1957

17.49%

Middle East (Dubai)

1994

32.51%SOCIAL

GOVERNANCE

its production.
We are proud to report that Maxeon solar panels outperformed
conventional PERC PV technology by almost threefold,demonstrating the efficiency of our renewable energy
technology and our commitment to excellence.

27© 2022 Maxeon Solar Technologies

Looking Forward
Maxeon continuously strives to reduce emissions from our own
operations and endeavors to further reduce emissions acrossour value chain.

APPENDIXENVIRONMENTAL

Water Management

Water is an important and increasingly scarce resource.

INTRO

Our Initiatives

Establishing proper water and wastewater management across all
our manufacturing operations is essential to our business and to

Technology application and routine maintenance to reducethe communities where we live and do business. We continuously

water usage and leakage

pursue innovative ways to increase our water efficiency andpartner with organisations that enable us to become better
stewards of water.

Management Approach
Water is a by-product of and a key component in the
manufacturing and production processes of solar cells and

ENVIRONMENT

Our robust water management initiatives ensure that the water
we withdraw is used productively and sparingly. This is largely
achieved through the use of technology to optimise our internal
water recycling processes by reusing the water employed torinse off panels during the manufacturing process. Maxeon alsofrequently engages with contractors to service our water systems
to repair any leakages and limit inefficiencies.

Solar Water Pump

SOCIALpanels. As a result, we carefully manage our water consumption
and treat all wastewater prior to its circulation into public utility
systems. As a means of conserving water, Maxeon engages inwater recycling initiatives such as treating wastewater to be used
onsite for cleaning and irrigation of gardens. We aim to improve
our water conservation efforts by reducing our water intensity by
5% by 2030.

Wastewater Treatment and Management
Our Maxeon facilities adhere to local regulations relating towastewater treatment and discharge processes. Furthermore, we
spearhead water conservation through the recycling and reuse of

GOVERNANCE

wastewater generated across our facilities for otheroperational processes.

APPENDIX

28© 2022 Maxeon Solar Technologies

ENVIRONMENTAL

Water Management

INTRO

3,486,450 m3

In the Philippines, our facility has introduced several water
conservation programmes to optimise water usage and increase
recycling. We have collected condensate water from our Makeup

water withdrawn

Air Handling Unit (MAU) and Return Air Handling Unit (RAH) to

ENVIRONMENT

reuse as Cooling Tower Makeup water. In addition to reducing thewater consumed, this also decreases water temperature in thecooling tower, thus improving energy efficiency at the same time.
We have also installed a solar water pump to reuse the water

Performance Highlightsfrom cooling water blowdown to water plants and landscaping.

In 2021, we withdrew a total of 3,486,450 m3 of water across the

Our facility in Mexico has implemented water-recycling projects
using reverse osmosis technology to treat and recycle thewastewater we produce. The treated water is then used in ourfacility for general cleaning, to wash glassware and for irrigationin our garden. Overall, these processes reduce our water
consumption. Moreover, through the use of sensors and valves,
we continuously monitor and measure our water conductivity to
track water consumption, ultimately ensuring its efficient use. We
have managed to reduce up to 4,000 m3 of water consumed per
day by implementing water-saving measures.

regions we operate with a water intensity of 3,876 m3 used per
MW produced.

SOCIALIn 2021, we saw a slight increase in our water intensity, from3,874 m3 per MW produced in 2020, to 3,876 m3 per MW produced.
In our efforts to optimise water use through reuse and recycling
where possible, we were able to minimise the impact of the
reduced MW production capacity on our water intensity.

GOVERNANCE

Looking Forward
Maxeon understands the importance of water stewardshipand strives not just to meet local regulations on water use andwastewater, but to minimise our water footprint by pushingourselves to set higher standards for our operations.

29© 2022 Maxeon Solar Technologies

APPENDIXENVIRONMENTAL

Waste

Waste is a key global and environmental issue with implications
on resource management, public health, inequalities and evenclimate change. A number of governments and international
coalitions are continuously examining ways to reduce waste
through public awareness campaigns, incentives for waste
reduction and in some cases, taxes on waste. As a result, waste
is becoming a key consideration for many organisations toaccount for, limiting its affiliated regulatory and financial risks.

INTROManagement Approach
Waste is another by-product of the solar manufacturing process.
We remain cognisant of the socio-environmental implicationsof waste generation and take an integrated approach to reuse,
repurpose and consequently reduce the waste diverted to

ENVIRONMENT

landfill. We evaluate our progress by consistently tracking thewaste generated and recycled, allowing us to evaluate the scopeof improvements in our proportion of waste recycled across ourfacilities and progress, towards our goal of a 10% increase inwaste recycled in comparison to 2020, by 2030.

SOCIAL

Our Initiatives
Recycling for Waste Management
At our site in France, we continue to sort our waste into eight
waste streams to facilitate recycling processes. At various

GOVERNANCE

locations in our factory, we have identified the type of waste
typically generated and have put in place collection points inthese areas to segregate the waste. As a result of this initiative, wecollected 119,258 kg of organic, wood and paper waste in 2021.

APPENDIX30© 2022 Maxeon Solar Technologies

ENVIRONMENTAL

Waste

Additionally, we have eliminated single use-plastics from our site
in line with new 2021 regulations to decrease waste generated

INTRO

RECYCLING FOR WASTE MANAGEMENT

from economic activity by 5% by 2030 and to eliminate singleuse plastic packaging by 2040. In all, 119,204.07 kg of waste was
ENVIRONMENT

avoided at our France site in 2021.
In the Philippines, we continue our waste recycling programmes
for four waste streams including metal, foam pellets, wood andcartons. The waste was placed in various collection points at ourfacility before being collected by recycling companies. In 2021,
we diverted 254 tonnes of waste from landfills.

SOCIAL

Metal waste for smelting

Wood waste turned intowood furniture

GOVERNANCE

Waste Collection Point for Cartons

31© 2022 Maxeon Solar Technologies

Foam waste recycled into pillows Cartons recycled into paper pulp
and pellets

APPENDIXENVIRONMENTAL

Waste

INTRO

Reuse of Personal Protective Equipment (PPE)PPE COLLECTION SYSTEM

In the Philippines, we continued our PPE cleaning and reuseprogramme to reduce waste and increase circularity. We
have engaged a service provider to collect, deliver, repair,

ENVIRONMENT

decontaminate and package the PPE utilised by our employees.
Our employees are also encouraged to deposit their used PPE
via this channel. Through our consistent efforts, we eliminatedmore than 14,000 kg of PPE waste in 2021.

PPE REUSEDPER YEAR (PCS)WASTE
ELIMINATIONPER YEAR (KGS)

Blue Aprons

9264

5,556

Face Shields

6456

2582

PPE

Safety Goggles(Elvex)200

40

Chemicals Boots

2960

6512

TOTAL

18, 880

14,690SOCIALGENERATIONOF USED PPE

COLLECTION
BY 3RD PARTYPPE
WASHING &PPE DRYING

DELIVERYREPLENISHMENT

GOVERNANCE

APPENDIX

32© 2022 Maxeon Solar Technologies

ENVIRONMENTAL

Waste

Zero Waste-to-Landfill Certification
Maxeon’s Mexico facility has been third-party verified as LandfillFree since 2015. This certification stipulates that less than 1%of waste materials can be sent to a landfill and less than 10%
of waste materials can be sent to a waste-to-energy facility, asverified through an external audit process managed by NSF

INTRO

One way we have been achieving our waste targets at our site is
to recycle onsite food waste into an organic composting garden
powered by solar.
•

Step 1: Site generates 200kg/day of organic waste•

Step 2: Collect organic waste for garden irrigation throughInternational, an independent organisation that oversees therecycling machine that converts food scraps into soil

Landfill-Free standard for companies around the world. (Learnconditioners for the plant’s onsite farm

more at nsf.org.)•

vendors to minimise waste by screening for vendors that havewaste reduction considerations in their operations. During the
manufacturing process, we also implemented a range of wastereduction procedures, including waste segregation, with somewaste streams being recycled for other purposes.

Step 3: Garden grows produce which in turn is served in thestaff canteen

To achieve this certification, we adopted a lifecycle-focused
approach across our supply chain. We partnered with our

ENVIRONMENT•SOCIAL

Step 4: Garden serves as a learning area for employees toapply the knowledge to their homes

Overall, we were able to generate 1,755 kg of compost in 2021,
repurposed as organic fertilizer for the gardens in our Mexicali
facility. The compost was also donated to operational staff and

GOVERNANCE

used in the orchard area.

APPENDIX

Solar Powered Organic
Composting Garden33© 2022 Maxeon Solar Technologies

ENVIRONMENTAL

Waste

INTRO

Performance Highlights
In 2021, Maxeon produced a total of 10,763 tons of waste (4,285
tons of hazardous waste and 6,478 tons of non-hazardous waste).
ENVIRONMENT

We recycled 74% of our total waste (57% of our total hazardous

F
O

ZA
HA

US WASTE
RDO
85% OF N
ON-

issue for our Company as we push for better managementof waste in terms of reducing its output and responsible
segregation, recovery and disposal.

We recycled
74% of our
total waste

DOUS WASTE
AR
AZ
H

Waste management will continue to be a priority sustainability

57

Looking Forward%

waste and 85% of our non-hazardous waste).

SOCIAL

GOVERNANCE

APPENDIX

34© 2022 Maxeon Solar Technologies

ENVIRONMENTAL

Circular Economy

Circular Economy is a concept that closely aligns with Maxeon’s

INTRO

Our Initiatives

commitment to UN SDG 12, Responsible Consumption and
Production. This relates to the efficient use and managementof natural resources whilst ensuring waste is reduced andrepurposed to result in a closed-loop system.

Management Approach
Maxeon strives to embed circularity into its operations as well as
in the design of our products. Our panels have been designed toperform productively and last for an estimated lifespan of over
40 years, which outperforms the current solar industry averageof 25 to 30 years. In our operations, Maxeon aims to play a pivotal
role in creating a Circular Economy, by establishing sustainablefacilities for solar cell and panel production.
We integrate a circular approach into the end-of-life stage of our
products by working with local recycling experts in the countries

Design circularity across our production plants and buildings
With the energy efficiency initiatives implemented at ourPhilippines facility, including solar panels at our carparks, we

ENVIRONMENT

maintained our LEED Gold Certification in 2021.
Our plant in Mexico, SPMX1, has maintained its LEED Gold
Certification for the manufacturing facility since 2016. We havebeen able to do so through several initiatives including LED
lighting installations and improvements to indoor thermal

SOCIAL

comfort. Furthermore, the Procuraduria Federal de Proteccion
al Ambiente (PROFEPA), Mexico’s environmental agency, renewed
our Clean Industry Certificate. This certification exemplifies
Maxeon’s dedication to improving its industry processes andcompetitiveness, both nationally and internationally.
GOVERNANCE

where we operate. These organisations include PV Cycle in Europe,
Reclaim PV Recycling and Hamada Corporation in Asia Pacific, andRecycle PV Solar and SEIA in the United States. In addition,
Maxeon has maintained its Cradle to Cradle Certification®, whichreflects our commitment to Zero Waste-to-Landfill and continued
fulfillment of the responsibilities of our Declare label.

35© 2022 Maxeon Solar Technologies

APPENDIXENVIRONMENTAL

Circular Economy

Transparency in our product ingredients

INTRO

Performance Highlights

Our interdigitated back contract (IBC) panels carry the Declarelabel, the only solar panel to do so. This distinction, issued by the

5 LEED® CERTIFIED FACILITIESInternational Living Future Institute, gives our product greater
Malaysia (Fab3)transparency by listing the materials that make up our panels.

LEED ® Gold

Clients can benefit from this as the labels also certify that ourpanels are free from harmful substances such as lead or

Mexicocadmium and do not require hazardous waste-handling

MAXEON 5

Declare label here.

MAXEON 3

Philippines (Fab4)

MAXEON GEN 5

LEED ® GoldMAXEON GEN 2

MAXEON GEN 3

Solar Cells

LEED ® Goldprocedures, thus supporting the recycling process. View our

ENVIRONMENT

Solar Cells

SOCIALMAXEON 2
Solar Panels

Malaysia

Philippines(Admin Bldg)(Admin Bldg)

LEED ® Platinum

LEED ® Platinum

GOVERNANCE

Looking Forward
To improve our efforts to promote the Circular Economy, we willcontinue to strengthen our partnerships and processes to ensurematerials are used productively and limit extraction of raw andvirgin materials. We will pursue the standards set out by thevarious certification schemes such as Cradle to Cradle, Declarelabel and LEED.

36© 2022 Maxeon Solar Technologies

APPENDIXENVIRONMENTAL

Performance Metrics

INTRO

2021

2020

Energy Consumption (MWh)240,832

276,044

Fuel Consumption (MWh)

1,795

1,170

Fuel Consumption (Litres)

188,929

123,269

596

562

LPG Use (kg)

43,83841,405

Conventional Purchased Electricity – Grid (MWh)238,142

266,246

98

97

Green Power Purchased (MWh) 1

3,633

6,342

On-site Renewable Electricity (MWh) 2

1,665

1,722

On-site Renewable Electricity (%)

0.7

0.63

Total Renewable Energy (% of Electricity)

2.22

2.94

Employee Commute (km) 3

1,504,630

1,604,169

Air Travel (km)1,565,250

896,625

Scope 1 Emissions (tCO2e)

580

399

Scope 2 Emissions (tCO2e)

149,282

173,335

Scope 3 Emissions (tCO2e)

441

328

150,303

174,062

Energy Intensity (MWh consumption / MW produced)

268

254

Emission Intensity (tCO2e) / MW produced)

167

160

8,413,603

10,147,576

LPG Use (MWh)Conventional Purchased Electricity – Grid (%)

Total Emissions (tCO2e)

Emissions avoided annually (tCO2e) 437© 2022 Maxeon Solar Technologies

2021

2020

3,486,450

4,203,076

25,6896,445

Total Water Discharge Volume (m3) 6

3,689,724

4,466,105

Water Intensity (m3 / MW produced)

3,876

3,874

Hazardous Waste Generation (tons)

4,285

6,125

Amount of Hazardous Waste Recycled (tons)

2,448

4,341

Percentage of Hazardous Waste Recycled (%)

57

71

Total Water Withdrawn (m3) 5
Total Water Recycled (m3)

ENVIRONMENTSOCIAL
Non-Hazardous Waste Generation (tons)

6,478

5,678

Amount of Non-Hazardous Waste Recycled (tons)

5,530

5,108

Percentage of Non-Hazardous Waste Recycled (%)

85

90

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

3.

Covers leased company shuttle only

4.

Calculated using EPA Greenhouse Gas Equivalencies Calculator

5.

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%

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:
Leadership Training Programme

SOCIAL

Spotlight: Leadership Training ProgrammeManagement Approach
Training and development at Maxeon are crucial contributors toeach employee’s career aspirations. These learning opportunities
also raise awareness of the value of environmental solutions,with the intention of creating a greater positive impact for theenvironment and our customers through our products.
We have defined our leadership capabilities and embedded
them in our leadership development programme. We
demonstrate our commitment to our leaders’ developmentby making high-quality, comprehensive training accessible toenhance their leadership capabilities. We continue to innovate

We also host mandatory annual trainings on specific regulatory
and technical topics to train and upskill our employees.
Furthermore, we hold our leaders accountable for ensuring thedevelopment of each team member in their areas of expertiseand geographical locations through career and development
customised to each employee to form a comprehensive training
and development programme with the goal of significantly
enhancing the capabilities of our employees.

Our Initiatives
Leadership Capability Framework

2021, we deployed a number of new training courses, including

Our Maxeon Leadership Capabilities — Driven, Selfless andprioritising employee learning and development.

ENVIRONMENT

conversations. This ensures that all training is effective andand curate new programmes that will develop our workforce. In
the Maxeon Leadership Programme. We maintain our stance on

INTRO

SOCIAL

Adaptable — have been introduced to all our leaders. This
framework allows managers to assess performance andprovide feedback to all team members across the company in

GOVERNANCE

a consistent manner. We have done further work this year toembed these principles into our leadership culture. We hire
individuals who demonstrate these values, and we continuously
manage performance based on these qualities to ensure any
high potential or emerging leader fully understands and candemonstrate these capabilities as they enter leadership roles.
Web-based Classroom Training39© 2022 Maxeon Solar Technologies

APPENDIXSOCIAL

Social Stewardship: An Overview

LEADERSHIP CAPABILITY FRAMEWORKINTRO

Career and Development Conversations
In Q3 2021, we introduced Career andDevelopment Conversations and Individual

We expect all team members todemonstrate our values:

Development Plans (IDP). We incorporated thelearning and development framework, with 70%

ENVIRONMENT

based on work experience, 20% on exposure andWe push the boundaries

10% on education through structured learning.
We thrive together

Discussions of IDPs are now incorporated into
our overall performance management process.

We hold ourselves toa higher standard

Moving forward, these leadership capabilities
will be further embedded into our performance

SOCIAL

management cycle.
DRIVEN
Maxeon Leader Development Programme(DO)
Value Creator
Accountable

This year, we launched our Maxeon Leadership Programme, andSimplifier

96.5% of our 456 people leaders across the organisation have

GOVERNANCE

attended and completed Module 1. This programme is structured
around the Maxeon Leadership Capability Framework, featuring
SELFLESS

ADAPTABLE

four foundational modules on leadership, feedback, coaching(FEEL)(THINK)and self-awareness. The programme was attended by our

Enables

Inclusive

Empowers

Learner

Executive Leadership Team as well as senior leaders, managers

Inspires

Innovatorand supervisors/team leaders. Identified leaders also joined
additional feedback and coaching pods to further practicetheir skills.

40© 2022 Maxeon Solar Technologies

APPENDIXSOCIAL

Social Stewardship: An Overview

INTRO

The Maxeon Leadership Programme directly aligns with our
Purpose and corporate key results (KRs) in Organisational
Development and Effectiveness, which is to build and maintain a

APPLYhealthy organisation. One of the priorities for this year is for all
people leaders across Maxeon to know, understand and start
MODULE 4

applying the Maxeon Leader Capabilities of being Driven,
Selfless and Adaptable.
MODULE 3

MODULE 2

MODULE 1
The Maxeon Leader
Focus on role as a leader.
Leading by example andaligned with
Maxeon’s Values.

Crucial Conversations &Constructive Feedback
Tools and skills to have effective
and positive conversations
with colleagues, teams andstakeholders, including giving
and receiving feedback.

Leadership
Journey Sharing41© 2022 Maxeon Solar Technologies

High Impact
Feedback Pod

Coaching to Enable,
Empower and Inspire
Understand the principles ofteaching and coaching yourteam in the workplace, creatinga collaborative environment
and applying GROW modelat Maxeon.

Coaching
Fundamentals Pod

Developing Self-awarenessand Dealing with
Challenging Situations

Maxeon Leader

ENVIRONMENTYour 30/60/90 action plan in
the workplace with Leader

SOCIAL

Build your self-awareness / EQ,
recognise your team members'
styles and learn how to adapt
your own behaviour to achieveeffective team outcomes.

DISC
Coaching

Action Plan
with Leader

GOVERNANCE

APPENDIXSOCIAL

Social Stewardship: An Overview

INTRO

Throughout our business operations and supply chain, we strive
to integrate our purpose of Powering Positive Change™, for the
benefit of our employees, partners, and the communities where

Powering Positive Change

we operate. At Maxeon, we believe that people are at the core of
ENVIRONMENT

our business success.
We understand and appreciate the value of our employees,
hence we strive to create a safe working environment whichenables them to fulfil their potential. In order to maintain an

Occupational
Health and
SafetyFair Labourand Human
RightsEmployee
Engagement

engaged workforce who take pride in their work, we strive forconstant improvement by diversifying talent pipelines, developing

SOCIAL

our employees, providing competitive employee benefits, andrecognising and retaining high-performing staff.
As we aim to be a responsible corporate citizen, we contribute

Learning andDevelopment

Diversity andInclusionCommunity
Investment

to and support the communities where we operate. We place anemphasis on human rights and fair labour conditions in order to

GOVERNANCE

uphold our operational integrity and reiterate this message to
our suppliers in our global value chain.
People, Suppliers and Community

APPENDIX

42© 2022 Maxeon Solar Technologies

SOCIAL

Occupational Health and Safety

Management Approach
At Maxeon, we believe that the safety of our employees andcontractors is paramount. All our manufacturing and RD&D
locations are certified to the internationally recognized ISO45001
and ISO14001 managements systems. We undergo rigorous
external audits every year to ensure our management systems
are up-to-date and in compliance with applicable legal andother requirements.

INTRO

ENVIRONMENTAL HEALTHAND SAFETY POLICY
MAXEON SOLAR TECHNOLOGIES, LTD.
(CORP-EHS-MAN-97262)

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.

ENVIRONMENT

The following commitments set the framework for the EH&S
Management System:• We promote an injury-free and occupational illness-freeworkplace.

Occupational Health and Safety (OHS) is embedded into every• We protect the environment by preventing pollution from ourbusiness operations.

aspect of our day-to-day operations at Maxeon, from the product• We fulfill our compliance and legal obligations arising frominterested stakeholders and areas where we operate.

design stage through to the review stage as part of our internal
Plan-Do-Check-Act continual
improvement process. We also share
best practices and key learnings
from incidents and improvement
opportunities proactively across

SOCIAL• We contribute to the protection of our environment byproactively reducing our carbon footprint, including
minimizing the consumption of energy and water resources.
• We develop our products to minimize environmental impact
throughout their lifecycle.
• We strive for continual improvement to enhance our EH&S
performance.
• We involve the participation and consultation of workers andkey stakeholders in the EH&S process.

GOVERNANCE

our locations.
Jeff Waters
Chief Executive Officer

Approved: November 18 2020

P OWER I NG P OSI TI V E CHANGE TM

APPENDIX

43© 2022 Maxeon Solar Technologies

SOCIAL

Occupational Health and Safety

INTRO

Our Initiatives

HIERARCHY OF CONTROLSCOVID-19 across our facilities a key focus area in addition toensuring OHS standards are being upheld. Through awarenessand education, we ensured that the vast majority of ourworkforce is vaccinated against COVID-19. We also lobbied for
vaccination at the municipal and state levels. This success isdemonstrated by achieving an average full vaccination rate of

MOST EFFECTIVE

The 2021 year was a challenging one, with the management ofreports of transmission within our facilities.
We go beyond compliance by subscribing to the most stringent
Occupational Safety and Health Administration (OSHA)
requirements. Leading and lagging
OHS Performance Indicators aremeasured as part of our proactive
approach. We have incorporated

LEAST EFFECTIVE

more than 90% across our locations around the world with no

Physically remove
the hazard

ELIMINATIONSUBSTITUTIONENGINEERINGCONTROLSADMINISTRATIVECONTROLSPPEENVIRONMENT

Replacethe hazard

Isolate people fromthe hazard

SOCIAL

Change the way
people work
Protect the worker
with PersonalProtective Equipment

GOVERNANCE

a comprehensive Management of
Change (MOC) process into our Risk
Management approach to address
EHS hazards and risks at the design,
implementation, elimination andmitigation stages via the Hierarchyof Controls (see chart).

44© 2022 Maxeon Solar Technologies

COVID-19 Vaccination inPartnership with Local
Government, Philippines

APPENDIXSOCIAL

Occupational Health and Safety

INTRO

All manufacturing plants and RD&D facilities are subject tointernal audits and third-party assessments to ensure thatour performance and management systems are reviewed andfunctioning efficiently and effectively.
ENVIRONMENT

As a team, we engage in the participation and consultation
process. We have introduced a Learning Management System(LMS) training package for EHS during the onboarding process.
Site-specific new employee orientation and competency trainings
are also provided to employees and contractors at all sites.

EHS Training at SPMX1, Mexico

Employees and contractors are empowered to identify GoodSOCIAL

Catches through feedback suggestions and site inspections,which are tracked closely to ensure proper closeout. The
formation of EHS committees at all manufacturing sites provides
an avenue for worker consultation and participation at all levels
so that every employee has a voice and stake in OHS matters.
As part of our Emergency Preparedness and Response plans,

GOVERNANCE

we identify and assess key scenarios and prepare throughcompetency training and realistic hands-on drills where practical.

Emergency Preparedness at
Fab4, Philippines45© 2022 Maxeon Solar Technologies

Personal Protective Equipment
APPENDIXSOCIAL

Occupational Health and Safety

INTRO

Climbing devices have been erected for work at height, including
mobile and fixed ladders with surrounding protection, as required
by Mexican safety standards.

CONTRACTOR MANAGEMENT AT FAB3, MALAYSIAENVIRONMENTSOCIAL

Fall Protection Programme Review at SPMX2, Mexico.
Safe Work Permit

Task / Hazard Specific Permit
An example of a Good Catch, as workers identified the risk offalling pallets and unstacked them.
CRANE OPERATORSCAFFOLDERGOVERNANCE

JHA / HIRAC

46© 2022 Maxeon Solar Technologies

OHD
OCCUPATIONALHEALTH DOCTORAGTAUTHORIZED GASTESTERSHO
SAFETY HEALTH
OFFICERSSS
SITE SAFETY
SUPERVISOR

Competent Person

APPENDIX

Example of a Good Catch at SPDV, France

SOCIAL

Occupational Health and Safety

Responding to COVID-19
The COVID-19 pandemic has impacted many lives and livelihoods
globally. Although we have been living with the pandemic for overa year, Maxeon still faces ongoing and ever-evolving challenges
to our business. As we continue to safeguard the health andwellbeing of our employees and support the communities
where we operate, Maxeon has continued our holistic COVID-19
response across the organisation.

INTRO

At all our SPMX facilities, we continued toadhere to strict guidelines and advisories
issued by local health agencies, including
temperature taking, full-body disinfections,safe distancing, and contact tracing.
Furthermore, we have limited the number

Our SPMX1 site has been audited andobtained the Distinction Award from
Mexican Institute of Social Security (IMSS)in recognition of our efforts in COVID-19
Prevention and Control in 2021.

ENVIRONMENT

of visitors and contractors to our facilities,
implemented protocols for SPMX employees
who visit contractors’ facilities, limited
business travel, and implemented a Return-to-Work policy for

Keeping Our Workforce Safe

support staff. In FY2021, Social Security inspectors visited our

Maxeon strives to ensure the utmost safety and wellbeing of

SPMX facility to verify our COVID measures in place and provided

our employees. In taking a cautious approach to COVID-19, we
maintained our key objective of having “Zero Local Transmissions”
within our premises. We also engaged an external consultancy
in Environment, Health and Safety (EHS) to make certain that
we are up-to-date with the latest government and corporate
requirements. Maxeon continued our weekly COVID-19 Steering

SOCIALa certificate that validates our facility as a safe place to work.
When the vaccination programme was rolled out, Maxeon
ensured that all team members who were eligible were
vaccinated. Vaccination of our workforce enabled our businessto control the number of COVID cases within our facilities.

GOVERNANCE

Committee Meetings, led by our CEO and Executive Leadership
Team, as well as regular working group global meetings to update
employees about health and safety policies and COVID-related
business practices. We have also uploaded COVID protocols
onto the Mexican Institute of Social Security (IMSS) website, togive employees access to assistance for medical care and otherrelated requests.
47© 2022 Maxeon Solar Technologies

APPENDIXSOCIAL

Occupational Health and Safety

INTRO

Contributing to Community Response

Looking Forward

In Malaysia, we made the following contributions to COVID-19

Our goal for 2022 is to adapt to smooth operations withrelief efforts:

COVID-19, by continuing health and safety measures in place andreinforcing these measures during upturns of COVID variants. We

ENVIRONMENT

plan to implement measures such as home offices for applicable
Items

When

Quantity

Cost (RM)

Cost (SGD)

Contributions offace masks andhand sanitiser

Mar-21

1,200
units each

13,320.00

4,318.34

Contributionsof water jugs to
COVID-19 ward in
Melaka HospitalJul-21300 units

1,200.00

389.04Contributions offood to communities
affected by COVID-19(joint effort with
Salvation Army)

Sep-21

20 boxes

3,000.00

972.6

Contributions offood to employees’
families affected by
COVID-19

Aug-21

14 boxes

2,100.00

680.82Contributions of PPE
and refreshments
to COVID-19 burial
team (volunteer
group) – Crowdfunding effort

Jul-21-

1,200

389.0448

employees, reduced personnel, part-time work days, increased
lunch breaks and following up with vaccination campaigns.

SOCIAL© 2022 Maxeon Solar Technologies

Contributions of face masks andhand sanitiser to Melaka
State Government

Contribution to COVID-19
Wards – 300 Units of Water Jugs
Two of our staff helped out for
two hours

GOVERNANCE

APPENDIXSOCIAL

0.81

Occupational Health and Safety

Total Recordable Incident Rates (TRIR)
per Million Manhours

INTRO

Performance Highlights
In 2021, Maxeon reported zero work-related fatalities andincidents of ill health. There were, however, 11 incidents ofrecordable work-related injury. Incident Investigations are
conducted using the 8D Problem-Solving Methodology to identify
the root causes and corrective actions. The best transferable

INCIDENT ANALYSISENVIRONMENT

Hand
37%

practices and key lessons are shared through our global teampartnership networks. An example is the Global Fall Protection
Programme Safety Standdown and Gap Analysis that was carriedout comprehensively to ensure that such high-risk activities areadequately and proactively addressed and sharedacross locations.

Torso
18%

BY
INJURED
PART
Leg
27%

SOCIAL

Eye
18%

Caught In Between
9%
Chemical Splash
27%

GOVERNANCE

Fall From Height9%
BY TYPEAPPENDIX

Slip, Trip & Fall
28%
49

© 2022 Maxeon Solar Technologies

Hit Against
27%

SOCIAL

Occupational Health and Safety

INTRO

Looking Forward
At Maxeon, we continuously strive to keep all our employees
safe at work. As our organisation expands in scope, we aim to

0

5000

0.8

continue with our COVID-19 management programme and ensurethat all high-risk and non-routine activities are addressed. We“push the boundaries” and “hold ourselves to higher standards”
by setting up key primary leading and lagging goals aligned to ourEHS policies as part of our continual improvement process.
As part of our Long-Term Targets for ESG, we plan to maintain our2020 benchmark, which is an industry-leading Total Recordable

ENVIRONMENTNOTICE OF VIOLATIONGOOD CATCHES

Official Written Citation
stating contraventions toprovisions of the applicable
Occupational Safety & Health& Environmental Legislation

Proactive reporting of Near
Misses & Good Catches(Unsafe Conditions &Behaviours) validated by site
EHS for both Employees &Contractors

TOTAL RECORDABLEINCIDENT RATENormalized to ONE Million
Manhours including Employees
and Tier 1 & 2 Contractors
SOCIAL

Incident Rate (TRIR) of 0.63 by 2025, and eventually reduce thisnumber by 10% by 2030. We will strive to create a stronger safety
culture with consistent improvement in our processes.

GOVERNANCE

APPENDIX

50© 2022 Maxeon Solar Technologies

SOCIAL

Fair Labour and Human Rights

INTRO

Management Approach
NON-HARASSMENT

NON-DISCRIMINATION

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.

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.

A SAFE AND CONDUCIVEWORKPLACEFREEDOM OF
ASSOCIATIONFORCED OR CHILDLABOUR

Maxeon works to ensurethat the workplace is a safe
and conducive environment
for everyone. This includes acap on the hours worked ina week, fair compensation
and a number of safety
precautions and measuresthat have been established.

Maxeon respects therights of all workers to
associate freely including
joining labour unions,seeking representationand establishing joint
workers’ councils, under theconditions that local laws arerespected and adhered to.

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

Maxeon takes a strong stance on protecting human rights. We
promote fair labour practices and respect human rights acrossall operations globally and work to ensure that all employees,
workers in our supply chains and individuals in the community
are treated fairly.
Our Global Human Rights Policy clearly establishes standards for

The following
dimensions are
addressed in
our policy:

our global business conduct related to human rights and labour
for employees, suppliers and any other business partners. This
policy is made publicly available through our various stakeholder

ENVIRONMENTSOCIALengagement platforms, including our website. The policy is
informed by, among other policies, the Universal Declarationof Human Rights, the Conventions of the International Labour
Organization (ILO), the UN Guiding Principles on Businessand Human Rights, the UN Global Compact (UNGC), and theOrganisation for Economic Co-operation and Development(OECD) Guidelines for Multinational Enterprises.

GOVERNANCE

APPENDIX

51© 2022 Maxeon Solar Technologies

SOCIAL

Fair Labour and Human Rights

INTRO

Our compliance strategy instils a risk-based approach which

employment contracts, during onboarding,aligns with the International Labour Organisation (ILO), whilst

annual training, and certification courses.

our annual training and certifications on our Code of Conduct

Anonymous reports may be made on our

include labour rights practices. Maxeon requires compliance

Compliance & Ethics Helpline at all times,

certifications from all our suppliers in alignment with the Officeallowing internal and external stakeholdersof Foreign Assets Control (OFAC) of the US Department of

to raise any concerns or infractions of these

Treasury to reduce the risk of exposure for breaches of ourpolicies and procedures.

policies and procedures. If increased risk is identified, Maxeon

ENVIRONMENT

Modern Slavery Statement
2021

conducts enhanced due diligence and grants specialised

We have a zero-tolerance policy for any

certifications on supplier operations and labour practices,violations of human and labour rights. We

thereby minimising our risk exposure on identified issues.

take specific measures if there are suspicions of violations

SOCIAL

of our policies or procedures, including holistic and robust
Maxeon has separately provided a Modern Slavery Statement

investigations. If investigations prove that the offending party isunder the Australian law for the year 2021.

found guilty, the party will be immediately terminated.

Supply Chain Management

We hold our suppliers to the same standards and proceduresas our employees and contractors. We enforce these policies

Maxeon considers its supply chain partners as an extension ofthrough our Master Services Agreements, which require

the company. Our policies and procedures regarding how wesuppliers to adhere to our Human Rights Policy and Codetreat our workforce are aligned with industry international bestof Conduct. Suppliers are expected to track any information

practices and guidelines issued by global organisations, such as

regarding human rights compliance, including annual

the United Nations.

assessments and compliance certifications. We also require

We ensure that our employees and contractors are aware of the
Global Human Rights Policy and Code of Conduct through their52© 2022 Maxeon Solar Technologies

GOVERNANCE

suppliers to provide updates upon request and conduct annual
assessments and compliance certifications.

APPENDIXSOCIAL

Fair Labour and Human Rights

INTRO

Maxeon’s Supplier Sustainability Guidelines require risk

measures will be undertaken which can include suspension orassessments, audits, certifications, training, and accountability

discontinuation of the engagement.

and management systems, ensuring adherence to all laws andregulations regarding human rights and fair labour.

To support the Conflict Minerals Policy, Maxeon has committed to:
ENVIRONMENT

Conflict Minerals Policy
Through our established Conflict Minerals Policy, we continue
avoiding the use of conflict minerals which directly or indirectly
finance or benefit armed groups in the Democratic Republic ofCongo (DRC) or adjoining countries, while continuing to support

1

2

3

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

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

4

5

Commit to adopt,widely disseminate,
and incorporate thispolicy in contracts andagreements with suppliers
who may source theconcerned minerals

Require concerned
suppliers to declare that all
products supplied either
do not contain 3TG thatare necessary to theirproduction or functionality,or, if they do, that they
originate from non-conflictareas or from refiners or
smelters that have beenvalidated as being
conflict-free

Coordinate with othercompanies, to create better
reporting solutions

responsible mineral sourcing in the region. Conflict minerals
include: columbite-tantalite (coltan) (i.e., tantalum), cassiterite(i.e., tin), gold, wolframite (i.e., tungsten) or their derivatives (3TG),
and could expand to include other minerals or their derivatives.
Maxeon is committed to refining our policies in accordance withnew regulations, thereby adhering to the recently established
Hoshine Withhold Release Order (WRO) and the Uyghur Forced
Labor Prevention Act (UFLPA).
Maxeon will immediately conduct immediate investigations on
suppliers that are identified as having a reasonable risk thatthey are sourcing from or linked to any party providing direct
or indirect support to, non-state armed groups. Should any
breaches to the Conflict Minerals Policy arise, remediation53© 2022 Maxeon Solar Technologies

6
Ensure transparency of theconflict minerals reporting
process by making ourreports publicly available

7
Reserve the right to request
additional documentationfrom suppliers regarding
the source of any minerals
included in its products,
and ask for traceability
data to be maintained fora minimum of five years

SOCIAL

GOVERNANCE

APPENDIXSOCIAL

Fair Labour and Human Rights

INTRO

Performance Highlights
We are proud to report zero cases of non-compliance regarding

Zero cases

human rights and fair labour in 2021, both within our internal
operations as well as within our supply chain.

ENVIRONMENT

of non-compliancein 2021To the best of our knowledge, none of our direct suppliers or
their suppliers for our products are based in or conduct theirprincipal business activities in a location that is the subject ofallegations of forced labour.

Looking Forward
In addition to having a zero-tolerance policy for any violationsof human and labour rights, we continue to monitor current
and emerging regulations and industry best practices. We willcontinue to improve our internal policies and controls, as well as
maintain close relationships with our suppliers to ensure they
continue to comply with the law. We are currently in the processof launching our modern slavery training.
To continue managing the ethical behaviour of our supply chain,countries deemed as high-risk will be evaluated through ourmulti-step risk assessment methodology, working across our
supply chain to mitigate risks. Should issues arise, we will54

© 2022 Maxeon Solar Technologies

engage specialists, both internal and external, to assist us in risk

SOCIAL

assessment and remediation measures.
Another goal moving forward is to increase traceability of our
supply chain, by putting it on the blockchain.
In setting our long-term targets for ESG, our goal by 2025 is for

GOVERNANCE

information about traceability of supply on blockchain to be madeavailable within four hours. By 2030, we aim to maintain zerocases of verified non-compliance with human rights laws withenhanced traceability.
APPENDIXSOCIAL

Employee Engagement

INTRO

At Maxeon, we are committed to growing a thriving, inclusive

building a sense of community and collaboration. AHMs are

and engaged workforce, where everyone has a purpose, feels afollowed by skip-level meetings, leadership meetings, local

strong sense of belonging, and understands the role they play inforums and stand ups. In addition, our larger sites, Mexico,

the organisation. Our goal is to ensure our employees care about

Malaysia and Philippines, conduct regular employee engagement

their work at Maxeon, individually and collectively.

sessions led by local site leaders.

Management Approach

We also have a Quarterly Business Review, in which all senior

At Maxeon, our leaders are responsible for developing talent andday virtual event. Through the rest of each quarter, we holdensuring our team members’ actions align with our corporate

Leadership Briefings with Senior Leaders in the organisation

key results (KRs), through our annual performance management(approximately 90 employees) to share confidential information

approach. This enables each team member to be focused andthat supports these leaders in fully understanding the context

driven, to be productive and deliver work that contributes to ourbehind decision-making, enabling them to be better leaders, andcompany’s long-term success.

to better engage their teams.

Our Initiatives

In 2021, we conducted a number of employee surveys to gather

On an organisational level, we have simplified our annual

specific Internal Communications survey, to better understandperformance and KRs to focus all our team members on six
corporate KRs. Our Executive Leadership Team hosts quarterly
All-Hands Meetings (AHMs) to communicate progress to all
employees, which have been well received. At a site level, thesecommunications are also delivered locally through our site AHMs
conducted by the site leader. Our global message is customised
for each location to focus on local issues or celebrations, whilst55© 2022 Maxeon Solar Technologies

ENVIRONMENT

leaders share business progress in their areas over a two-

feedback, including post-event surveys after our AHMs, and a

SOCIAL

GOVERNANCE

our employees’ perspectives. Towards the end of the year, wecreated our first “Ideas Box” – Your Ideas Matter – in which teammembers submitted their ideas for cost savings, efficiency andother topics of interest, to enable employees to share their views
and further contribute to the success of our company.
APPENDIXSOCIAL

Employee Engagement

INTRO

We provide our employees with benefits that align with local

shareholders to align the long-term financial interests

legislation in the countries where we operate. These include lifeof its executives and Directors with those of theand healthcare insurance, disability support and parental leave.

Corporation’s shareholders.

Healthcare benefits also extend to temporary and contract staff.
Retirement provisions are also aligned to countries’
statutory requirements.

This year, we held several events andIn conjunction with International Women’s Day, Maxeon

celebrations for our employees. On Earth Day,enhanced our maternity leave benefits for Australia. In Australia,

every employee was granted a day’s leave

employees are entitled to paid 12 weeks maternity leave or two

on 22 April, and we encouraged our team toweeks of paternity leave after a minimum service period. We

engage in an activity that made a difference

have enhanced the maternity and paternity leave by reducing

to sustainability. Posts and photographs werethe minimum service period from a minimum of 12 months to 6

shared amongst staff to recognise their efforts.

months. In Singapore, female employees are granted 16 weeks

In Singapore, the ESG and Legal teams cameof maternity leave and male employees are granted two weeks

together to organise our first beach clean-up toof paternity leave.

do our part for Earth Day, collecting a total ofmore than 14kg of trash on the beach.

In June 2021, the Compensation Committee of the Board adopted

ENVIRONMENT

Performance Highlights

SOCIALFirst Beach Clean-Up

GOVERNANCE

Minimum Stock Ownership Guidelines applicable to Outside
Directors and members of the Executive Leadership Team.
Participants must own shares of common stock, with the amountof stocks distributed being dependent on their leadership position.
Maxeon believes it is in the best interest of the Company and its
APPENDIX

56© 2022 Maxeon Solar Technologies

SOCIAL

Employee Engagement

INTRO

For our First Year Anniversary celebration in August, we showed
our appreciation to employees and recognised our team’s efforts
by granting leave and hosting a global virtual celebration and

4,111

local events, giveaways, and competitions with prizes.
In October, we made our first step towards establishing global

ENVIRONMENT

full-time employees

Employee Resource Groups, by recognising World Mental HealthDay and dedicating the month of October to a wellness challenge,
inviting all locations to participate and compete virtually. Many
locations held athletic competitions, shared wellness tips andmental health discussions. We communicated with employees
weekly, providing competition updates and photographs.

SOCIAL

Separately, in Singapore, we held several virtual events, including
quarterly townhalls and virtual teambuilding. Wellness packs,

We also conducted wellness initiatives, including a STRAVA

including cold brews, were delivered to employees island-wide inwellness app challenge, mental health forums on a local andappreciation for their hard work. Lastly, a virtual lucky draw was

global scale, and increased availability of mental health services.

held in celebration of our First Year Anniversary, and a gaming

In Malaysia, we held several events, including Tea-Talk Sessions,chair was given away as grand prize.

Internal All Hands Meetings, Stay-in Interview, and the Wall of

Through all of our employee initiatives, we aim to engage ourFame. To show appreciation to our team members, we gave out

employees globally and locally.

GOVERNANCE

Employee Recognition Awards, including: Long Service Awards,
Health Employee Recognition Award (HERA) and First Silicon PERC
achievement, and provided a free T-shirt and ice cream forall employees.

57© 2022 Maxeon Solar Technologies

APPENDIXSOCIAL

Employee Engagement

Looking Forward
We strive for an engaged workforce, where people have meaning
in their work and are able to learn and grow.
In 2022, we will continue building on the foundations of ourexisting employee engagement activities. In addition, we will
launch our first global Employee Resource Groups, bringing
together communities of passionate individuals to drive
meaningful change. We will also be rolling out our new Maxeon
recognition programme, SOLAR, a digital tool enabling teammembers to say thank you, as well as to recognise teammembers’ significant achievements. We strive to build a cultureof gratitude, recognising the achievements of our employees asa focal point of our employee engagement activities. Our goal is
to formalise key feedback loops, providing the mechanisms toenable feedback at all levels.

INTRO

In 2021, we are proud to report that we have made progress on
the Employee Engagement goals for Maxeon’s long-term targets
for ESG. We aim to make further improvements towards ourrecently rolled out leadership development programme andcareer development planning framework. We aim to have 90%

ENVIRONMENTof eligible employees complete the leadership development
programme by 2025, followed by 95% by 2030. We also aim tohave 70% of employees engage in a career and development
discussion with their leader by 2025, followed by 80% in 2030.
We are incorporating structured feedback tied to our leadership

SOCIAL

capabilities and company values into our performance review
process and aim to meet this target by 2025. By 2030, our goal is toembed a culture of continuous feedback amongst our workforce,to further empower our employees’ learning and growth.
GOVERNANCE

We encourage our employees to embrace Our Purpose and Our
Values in their work, creating a connection between everyone's
goals to our corporate KRs. We are improving our internal
communications tools to build opportunities for collaboration
across sites and teams.
APPENDIX

58© 2022 Maxeon Solar Technologies

SOCIAL

Learning and Development

Management Approach
Training and development are critical to the success of thecompany as they help to develop our employees' skill sets
and fulfil their career aspirations. As such, we prioritised
our Leadership Training Programme this year, as seen in the
spotlight mentioned earlier in this report.

Our Initiatives
In addition to our Leadership Training Programme, Maxeon
continues to innovate new frameworks and programmes toenhance our employees' learning and skills.
Mandatory Training and Onboarding Programmes
Aside from our standard annual mandatory trainings, such as
workplace health and safety training, we have updated our Global
Mandatory Training policy and have engaged with our Executive
Leadership Team to ensure our learning initiatives align with ourorganisation’s goals and business strategy.

INTRO

This year, we introduced new courses to employees across our
regions, including ISO 9001:2015 Auditor Transition Training
Course, Forklift Safety Training, Behavioural Based Forklift Safety
Operations Training, and Hazard Materials Managements and Spill
Prevention. Furthermore, we conducted some refresher training

ENVIRONMENT

courses to ensure each team member is up-to-date on the latest
information and skills, such as Radiation Safety and Health. In thePhilippines, we conducted an EHS Online Safety Refresher, andmade available an instructor-led class on “Preventing Workplace
Harassment” on the Learning Management System (LMS). In
Malaysia, we conducted Hazard Communications for Direct

SOCIAL

Labours (DLs) and Indirect Labours (IDLs).
We continuously revise our employee onboarding programme toprovide guidance to new hires, helping all team members learn
about and understand Maxeon’s core values from the beginningof their Maxeon journey. Our employees are also required toundergo mandatory training programmes, including our Code of

GOVERNANCE

Ethics and Business Conduct, IT and Safety training, which follow
local regulations, all of which are accessible on-demand.

APPENDIX

59© 2022 Maxeon Solar Technologies

SOCIAL

Learning and Development

INTRO

Performance Highlights
TOTAL HOURSAVERAGERECORDED

TRAINING HOURSAMERICAS

22

2.2

APAC

210

2.47

EMEA

317

2.42

MX

1,024

4.4

MY

66,40843.72

PH20,836

15.82

SG

293

2.71

89,11024.4

COUNTRY / REGIONGrand Total / Average
Total Employees with
Learning Records

3,652

ENVIRONMENTSOCIAL

89,11024.4

total training hours

average training hours

GOVERNANCE

APPENDIX

60© 2022 Maxeon Solar Technologies

SOCIAL

Learning and Development

INTRO

Our GRID global learning platform enables us to track employee
training, helping us better understand our their aspirations forboth personal and professional growth. The platform is mademore accessible through a mobile app, which we introduced
this year. Our employees can access and complete their learning

ENVIRONMENT

courses conveniently on their mobile phones. This encourages
our team members to be personally accountable for theirlearning and development.

Looking Forward

SOCIALWe aim to continue ensuring our employees learn throughon-the-job training (70%), learning through others (20%) andonline/classroom training (10%). Moving forward, we plan tofurther embed our leadership capabilities in our performance
management cycle.
In 2022, we will launch an updated version of our global anti-

GOVERNANCE

bribery and anti-corruption training, a workplace harassment
programme, as well as training for our Code of Ethics andBusiness Conduct.

APPENDIX

61© 2022 Maxeon Solar Technologies

SOCIAL

Diversity and Inclusion

Maxeon is committed to building a diverse and inclusive
workforce to create a fair, equitable and healthy businessenvironment for all employees. We embody this through our

INTRO

•

sex

•

ancestry•

gender identity or•

citizenship•marital status•familial status

•

age

•

physical disability•

mental disability•

medical condition•

genetic information•

protected veteran or

expression

policies, training, diversity statements, mutual respect andorganisation-wide celebrations of diversity. In 2021, we reviewed•

reproductive status

our diversity and inclusion policies to look for ways to improve(which includes

our inclusiveness and ensure the diversity of all team members.

pregnancy, childbirth andbreastfeeding )Management Approach

•

race

Maxeon is a purpose-driven organisation, therefore we strongly•

colour•religion (including

advocate for empowering and promoting inclusion of all people,
regardless of social, economic or political differences. We

religious dress practices

express our principles on equal opportunity, diversity andand religious grooming

non-discrimination through our Global Human Rights policy,
at the workplace, including discrimination based on thefollowing characteristics:•

sexual orientation•

national origin

SOCIAL

military status

practices)in which we renounce any form of discrimination and harassment

ENVIRONMENT•

any other characteristic
protected by local law

GOVERNANCE

or regulation

APPENDIX

62© 2022 Maxeon Solar Technologies

SOCIAL

Diversity and Inclusion

Our Initiatives
At Maxeon, diversity and inclusion underscore how we
operate, and this can be seen in the following Board
diversity and hiring statements.

Board Diversity statement
Maxeon is committed to a policy of inclusion and follows theguiding principle that our Board composition should reflect
diversity of experience and perspectives. In furtherance of thiscommitment, when considering candidates to fill an open seat on
the Board, the Committee will request that the pool of potential
candidates to be considered by the Committee for nomination
to the Board include a diverse group of qualified candidates interms of experience and skills, age and tenure, gender, ethnic
and social background. In addition, the Committee shall review
periodically the composition of the Board to ensure it reflects theknowledge, experience, skills and diversity required for the Board
to fulfil its duties.

INTRO

Hiring statement
The Company is an equal employment opportunity employer and makes
employment decisions, including but not limited to, hiring, firing, promotion,
demotion, training, and/or compensation, on the basis of merit. Employment

ENVIRONMENT

decisions are based on an individual’s qualifications as they relate to the job
under consideration. The Company’s policy prohibits unlawful discrimination
based on sex (which includes pregnancy, childbirth, breastfeeding, or related
medical conditions, the actual sex of the individual, or the gender identity or
gender expression), race, colour, religion, including religious dress practices
and religious grooming practices, sexual orientation, national origin, ancestry,

SOCIAL

citizenship, marital status, familial status, age, physical disability, mental disability,
medical condition, genetic information, protected veteran or military status, or
any other consideration made unlawful by federal, state or local laws, ordinances,or regulations. The Company is committed to complying with all applicablelaws providing equal employment opportunities. This commitment applies toall persons involved in the operations of the Company and prohibits unlawful

GOVERNANCE

discrimination by any employee of the Company, including supervisors andco-workers. Maxeon is committed to complying with all 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

63© 2022 Maxeon Solar Technologies

SOCIAL

Diversity and Inclusion

Our hiring statement and fair employment policies apply to all
persons involved in the operations of the company. These areincluded in all hiring material and job descriptions to prohibit
unlawful discrimination.
In 2021, we assessed our maternity and paternity policies
across our global operations, particularly in regions where wehave the most female employees, to find opportunities for
improvement. Our goal is to make specific changes in areas thatmatter most to people, in order to implement effective changes
for our employees. We have been working closely with site HR
departments as well as the employees themselves to gain insightand appreciate local challenges and potential improvements.

INTRO

Respecting and celebrating diverse cultures
Despite COVID restrictions in various locations, Maxeon’s teammembers came up with creative ways to celebrate cultural
holidays and festivals. During Chinese New Year (CNY) in
Singapore, it is a tradition to give out red packets to friends and

ENVIRONMENT

family as blessings for good wishes and luck for the new year
ahead. In 2021, Maxeon celebrated CNY by giving out digital
red packets to our Singaporean colleagues. In Malaysia, ourcolleagues decorated the office to celebrate CNY.
Maxeon is committed to continuing to celebrate the cultures of

SOCIAL

our diverse employees whenever possible.
In Malaysia, we celebrated Hari Raya Puasa by giving all
employees 1500 “Bubur Lambuk,” and we also organised an
online Ramadan Quiz.
GOVERNANCE

In Singapore, we have policies in place which allow employees
to take half a day off on the eve of a major festive holiday if theycelebrate it, such as Chinese New Year and Hari Raya Haji, tospend some time with their families.

APPENDIX

64© 2022 Maxeon Solar Technologies

SOCIAL

Diversity and Inclusion

INTRO

Performance Highlights

Looking Forward

The policies that Maxeon established regarding diversity have

We aim to increase the diversity of our employees inallowed us to achieve an inclusive work environment for ourmanagement roles by investing in the continuous development

employees. We are delighted to achieve the following resultsof our employees. We believe that through the inculcation ofregarding workforce diversity:

diversity in our management, we will be empowered to create

ENVIRONMENT

integrated and holistic business decisions. Additionally, tocreate a diverse and inclusive culture, we intend to develop
and implement a hiring plan focused on attracting, recruiting
and retaining a diverse workforce. We also encourage our
employees to work together towards fostering a caring culture

54%

46%

Men

Women

and environment, conducive to all.

SOCIALFor our long-term ESG targets for diversity and inclusion, ourgoal is to increase the number of leaders who identify as female
to 34% in 2025, and eventually 37% by 2030. As we launch our
Women's Employee Resource Group, Women@Maxeon, we aim
to establish a charter, analyse data and support the definition of a

GOVERNANCE

path to achieving these numbers. In 2022, our Inclusion, Diversity& Belonging strategy will be finalised with these clear goals.
Furthermore, we will implement solutions to specific challenges
our employees face, in order to improve the well-being of all ourteam members to our best capability and make the Maxeon
environment even more inclusive.

65© 2022 Maxeon Solar Technologies

APPENDIXSOCIAL

Community Investment

Maxeon understands the importance of supporting theINTRO

Our Initiatives

communities where we live and work, especially when many ofthese areas still feel the impact of the pandemic. We strive to help
the most vulnerable individuals and segments of communities.

Management Approach
Apart from providing our customers with clean energy, we
understand the importance of helping those in need, and acting
as a positive force within and beyond the communities where
we operate. Our local teams develop and manage community
programmes specific to local needs and work to address thoseneeds as appropriate through our business expertise andthrough the talents and skills of local employees.
Although lockdowns, movement restrictions and government
regulations prevented our team members from interacting with

North Benin – North of France Craftsman Solidarity
The Craftsman Solidarity North Benin - North of France

ENVIRONMENT

is working with the “Tanguieta Artisans Collective” for thedevelopment of “sustainable, solidarity and innovative
craftsmanship.” Since 2018, they have implemented several
projects for the development of crafts and learning in
northern Benin.

SOCIALIn doing our part to support this NGO, Maxeon has constructed aa 530 m2 solar-powered technical and training centre for craftsman
and apprentices in the Tanguieta region. We also constructed awater pumping station powered by solar, providing the area witha fresh water supply. The association develops apprenticeships ofdifferent trades for the young people of the region.

GOVERNANCE

people directly, Maxeon was persistent in supporting initiatives
and people through other means.

APPENDIX

Training of Craftsmen
and Apprentices
66© 2022 Maxeon Solar Technologies

SOCIAL

Community Investment

INTRO

Through this NGO, more than 45 people have been trained and

The feedback we have received about thewere better equipped with skills, which helped them find jobs.

JA-YE programme has been overwhelmingly

The infrastructure we were able to provide has improved the lives

positive, and we are happy to see the impact

and livelihoods of the communities in the North Benin region.

our investment has had on the community.

We will continue to support these efforts to the best of our ability.
As the pandemic continued through 2021,
Junior Achievement Young Enterprise (JA-YE) Programme

the students in Malaysia were unable toparticipate in physical meetings or co-This experiential, extracurricular activity recognised and supported

curricular events. However, they were able toby the Ministry of Education in Malaysia provides secondary

attend virtual meetings and workshops, andschool students with an opportunity to become entrepreneurs

even learned to sell their products using anby creating and managing their own “mini” company at school.

online platform.

This involves product brainstorming, meetings with advisors,
report writing, product sales, presentation and auditing. The
JA-YE Programme enables students to employ concrete business

I wasn’t quite excited about the
programme, thinking it was a one-day
programme like others. I was given one of
the most important roles in this company.
At first, I wasn’t confident in myself andeven thought I wasn’t eligible for that
position. With the support of my advisors
and teachers, it was easy to keep up withthe others. This programme was so usefuland I hope to join it next year as well.

ENVIRONMENTSOCIALSMK Paya Rumput, Melaka,
JA-YE Alumni

practices and explore the process of building an enterprise. It
equips future leaders with valuable skills in entrepreneurship,

GOVERNANCE

teamwork, leadership, creativity and innovation, providing
students with insight to potential career paths. Maxeon is proudto sponsor local schools to participate in this programme overthe past six years.

APPENDIX

Student JA-YE teams
67© 2022 Maxeon Solar Technologies

SOCIAL

Community Investment

Maxeon volunteers in the JA-YE programme expressed great
joy as they observed improvements in the students’ skills andattitudes. Beside the opportunity to impart knowledge, theprogramme also gave a window of opportunity for our volunteers
to give back to society. Although students were unable to visit ourcell fab facilities in 2021 due to the pandemic, we are planning toreintroduce visits in 2022, as local operations allow.
The JA-YE students in 2021 completed the programme and won

INTRO

Hawksbill Turtle Conservation Programme
Although our volunteers were only able to visit the conservation
centre towards the end of 2021, Maxeon’s Malaysia teamcontinues its partnership with the Melaka Fisheries Department.
We sponsored the satellite data subscription to track the Hawksbill

ENVIRONMENT

Turtle (aptly named Puteri SunPower). In 2021, we contributed
MYR 6,600 and four of our team members volunteered at the site
for eight hours in November and December.

several awards:•

3rd Runner Up – Best Use of ICT Award•

3rd Runner Up – E-Commerce Store with Most Orders Award

SOCIALIn 2021, 22 students have participated in the programme, ranging
from 15 to 17 years old. Maxeon contributed MYR11,000.00,
and volunteered six staff advisors who contributed 48 hours of
GOVERNANCE

involvement with the programme. We will continue to sponsor
JA-YE, preferably with rural schools within our community.

Volunteers at Hawksbill Turtle Conservation Programme

APPENDIX

68© 2022 Maxeon Solar Technologies

SOCIAL

Community Investment

Contributions to the Community in Malaysia
This year, our Malaysia team was actively involved in corporatesocial responsibility programmes, comprising donations of goods,
crowd-funding and volunteering. We celebrated local festivities
by contributing to disadvantaged families during Chinese New
Year, Hari Raya and Deepavali, involving a cumulative total of

INTRO

We continue supporting schools within the country in various
ways, including donations of 25 office chairs and 15 tables
to Sekolah Jenis Kebangsaan (C) Pay Hwa. We also donated1200 boxes of face masks and 1200 bottles of hand sanitisers,
ENVIRONMENT

representing a donation of MYR13,320.00. In total, these
initiatives involved seven staff who volunteered for 14 hours.

15 staff volunteers and 41 hours of services. We contributed
MYR13,309.70, MYR13,427,00 and MYR13,187.00 for each event
respectively, providing MYDIN vouchers, groceries and snacks.
SOCIALAs the impact of the pandemic remains severe in Malaysia, we
supported families affected by COVID-19 in various ways. We
established an employee support team for families who wereaffected, checking in with them for any support requests suchas medication, transport and food aid of MYR150 per family. Thisinitiative involved five staff volunteers working for 20 hours andSupporting Disadvantaged
Families
GOVERNANCE

a total of MYR2,100, in support of our peers. This year, we alsocollaborated with the Salvation Army, contributing MYR3,000 andtwo staff volunteers and donating 20 food aid boxes to families
affected by COVID-19.

Donations of Office Chairs
and Tables

69© 2022 Maxeon Solar Technologies

APPENDIXSOCIAL

Community Investment

INTRO

Performance Highlights
Due to COVID restrictions globally, we were unable to conduct as
many in-person engagements as we would have preferred to do.
Over the previous five years before the pandemic, our employees
were actively involved in community engagement activities

12

$24K

47

successful community
initiatives hosted in 2021*

total community grants
and donations

employee volunteers
in 2021ENVIRONMENT

and volunteer work. We hope to be able to continue this direct
involvement, once restrictions ease.
Despite these challenges, we not only continue to support our
local communities where we operate, but also seek initiatives

SOCIAL

where we can best assist. This year, we made several
contributions, including donations, sponsorships, grants,
infrastructure and equipment.

Looking Forward
Maxeon will continue upholding our commitment to serve and

GOVERNANCE

help the communities where we operate. We also aim to drivesocial development and empowerment aligned to our social andmoral responsibility to society. We hope to have the opportunity
for more in-person engagements in 2022, once the risk of thepandemic eases. As part of Maxeon’s long-term ESG targets, weplan to increase our number of Maxeon volunteering days to
5,000 in 2025, and eventually 7,500 in 2030.

70© 2022 Maxeon Solar Technologies

APPENDIX*

including COVID-19 community outreachSOCIAL

Performance Metrics

INTRO

Gender Split
Male

54%

Female46%

Number of Fatalities as a result of Work-Related Injuries

0

Number of High-Consequence Work-Related Injuries(excluding fatalities)

0

Number of Recordable Work-Related Injuries

11

Number of Recordable Work-Related Ill Health

0

Male

75%

Female25%

Employee Diversity 1<30 years old

Work-related Illness, Injuries or Fatalities
For Employees & Contractors 2

Executive Leadership Team–30-50 years old

50%>50 years old

50%Professionals / Managers
Male

66%

Female34%<30 years old

2%30-50 years old

79%>50 years old

19%

Number of Hours Worked

0Rate of High-Consequence Work-Related Injuries (%)

0

Main types of Work-Related Injuries

Technical, Production and Administrative
Male

53%

Female47%<30 years old

34%

30-50 years old

62%>50 years old

71© 2022 Maxeon Solar Technologies

4%13,570,277

Rate of Fatalities as a result of Work-Related Injuries (%)

Rate of Recordable Work-Related Injuries (%)

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

ENVIRONMENTSOCIAL

0.81
28% – Slip, trip and fall
27% – Chemical Splash
27% - Hit Against
9% - Fall from Height
9% - Caught in Between

GOVERNANCE

1,000,000

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 2021. Maxeon will continue to improve datacollection processes for subsequent reports in alignment with GRI standards.

APPENDIXGOVERNANCE

Spotlight: Partnerships for
Positive Change

GOVERNANCE

Spotlight: Partnerships for Positive Change

At Maxeon, we believe in being a good corporate citizen andcreating positive impact that extends beyond our operations
to include our external partners. Through engaging withresponsible, ethical and sustainable partners, we can further
our sustainability purpose and positive impact on the planet. As
a result, Maxeon continuously seeks opportunities to partnerwith organisations whose purpose aligns with ours, driving allencompassing positive change for the environment and society.

Singapore Low Carbon Network
This year, we became an inaugural member of the Singapore
Low Carbon Network launched by PwC Singapore, which
partners with a multitude of firms and enterprises across

INTRO

Urban Solar
Our first research collaboration focuses on the developmentof Urban Solar solutions. Maxeon and Solar Energy ResearchInstitute of Singapore (SERIS) have embarked on creating ahighly efficient and customised glass photovoltaic module for

ENVIRONMENT

application as an urban solar noise barrier. We aim to develop
photovoltaic modules that reduce or deflect noise in addition
to efficiently harvesting solar energy. These modules are suited
for urban developments and in areas where noise pollution
significantly affects the quality of life. This project investigates
the areas of material selection, process development and

SOCIAL

optimisation to refine the performance and reliability of thephotovoltaic modules we build.

Singapore to support the Singapore Green Plan 2030 in striving
towards decarbonisation. Through our involvement as a key
solar technology player, we hope to further the network’s cause

GOVERNANCE

and propel sustainability through global partnerships.

APPENDIX

Photovoltaic Module Laminator73© 2022 Maxeon Solar Technologies

GOVERNANCE

Spotlight: Partnerships for Positive Change

As part of this collaboration, SERIS has graciously lent theirstate-of-the-art and multi-stage laboratory-grade photovoltaic
module laminator to Maxeon. This laminator has been relocatedand installed at Maxeon’s Research, Development & Deployment(RD&D) laboratory at Kaki Bukit in Singapore. Our RD&D team
employ this laminator, in tandem with the researchers from SERIS,
for research and development work across this project.
Our Urban Solar collaboration with SERIS will benefit the wider
community in Singapore as we develop multi-purpose noisebarriers that harvest solar energy to create a pleasant urban
environment with clean and renewable energy.

INTRO

Solar Panels for Espressone GmbH
Another partnership we established in 2021 was with theFranconian coffee roaster, Espressone GmbH. Committed toexercising fair coffee trade and production for their people,
patrons, and communities, Espressone GmbH are also

ENVIRONMENT

committed to responsible and sustainable coffee production
through their careful selection of green coffee. Furthering
the company's sustainability purpose, they engaged Maxeon
to install a solar power array onto the company’s roof. We
assisted with the installation of 491 highly efficient SunPower
Performance modules, with a 25-year warranty. As a result, we

SOCIAL

were able to assist in ensuring Espressone GmbH’s sustainable
independence through long-term reliance on renewable energy.
Through all of these partnerships, we hope to empower
ourselves and our partner organisations to further advocate for asustainable approach to bettering the world and society. Maxeon

GOVERNANCE

aims to continuously expand its partnerships across the globe todrive sustainability and create positive change.

APPENDIX

74© 2022 Maxeon Solar Technologies

GOVERNANCE

Governance Approach: An Overview

Ensuring good corporate governance is key to engendering trust

anti-competitive and other improper corporate behaviours.

and preserving value for employees, customers, shareholders

The Code of Conduct is intended to guide the proper evaluationand other stakeholders. As a result, it is critical to implementof corporate behaviours expected at Maxeon. We ensure stricta sound management approach to corporate governance toadherence to our policies and uphold our corporate values by

enforce compliance to all relevant regulations, laws and policies,

ensuring all our existing and new stakeholders are familiar withultimately limiting scope for adverse financial, organisational

our Code of Conduct.

INTRO

GOOD

GOOD

GOVERNANCE

BUSINESSENVIRONMENT

and reputational risks. Furthermore, good governancereinforces Maxeon’s unwavering commitment to its corporate

Maintaining integrity in our products and service offerings is avalues and purpose.

cornerstone of our business. Maxeon’s Quality Policy describes
the stringent standards required to ensure product quality and

At Maxeon, we aim to be responsible leaders and inspire trust

reliability. Additionally, we have established extensive quality management systems

amongst all our stakeholders, thereby placing great emphasisand our products are certified by international third-party agencies to validate theiron complete transparency and upholding integrity across all our

quality and performance. Through our industry-leading long-term warranty, wegoverning policies and operating processes.

address our customers’ needs with a guarantee of high reliability.

We Thrive Together: Good Governance Leads toGood Business

Customer satisfaction and feedback are critical for us to identify areas ofConducting our organisational affairs whilst maintaining integrity

commitment to them, inspire customer loyalty and develop products as the market

and ethical standards are paramount in solidifying the foundation

demands. We aim to maintain a competitive advantage and stay ahead of the industryof our business. We remain vigilant on corporate behaviour

curve through innovation that enables new levels of sustainability. We believe

across all scopes of our operations to limit non-compliance.

continuous development and improvement of our solar technology will optimise its

Our robust Code of Ethics and Business Conduct (Code of
Conduct) presents our policies relating to corruption, bribery,75© 2022 Maxeon Solar Technologies

improvement needed for sustained growth and development. As a result, weregularly engage our customers with surveys to collect feedback, demonstrate our

SOCIAL

GOVERNANCE

performance, durability and our positive contribution on society and the environment.
APPENDIXGOVERNANCE

Business Integrity and Ethics

INTRO

Management Approach
Our organisational reputation is dependent on the integrity of
our employees and stakeholders. As a company, we aspire to
conduct ourselves in a manner beyond reproach and expect our
Directors, officers and employees to conduct themselves with

GlobalAnti-Corruption
Compliance
PolicyInsider Trading
PolicyWhistle-blower
PolicyENVIRONMENT

the highest moral and ethical standards, as described in our
Code of Conduct.
We conduct annual training for all our employees and suppliers
to instil ethical business behaviours across our workplaces
and throughout our supply chain, as per our Code of Conduct.
This training imparts our fundamental values of sustainability,transparency, integrity and honesty in all business behaviour.

Our Corporate
Governance Policies
Available in seven languages (English, Chinese, Spanish,French, Japanese, Malay and Tagalog)

Global Human
Rights Policy

SOCIALThe training also highlights intolerable corporate actions,
including 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 andorganisational structure, which can increase the potential impactof adverse changes to laws, rules and regulations. As a result,

Code of Ethics
and BusinessConduct

Conflict Minerals
PolicyModern Slavery
Statement

we have an extensive set of corporate governance policies, as
illustrated at right.
APPENDIX76© 2022 Maxeon Solar Technologies

GOVERNANCE

Business Integrity and Ethics

Our Initiatives

INTRO

We encourage employees to report known or potential
misconduct by ensuring anonymity in any language, thereby

For our Employees
We ensure our employees are aware of Maxeon’s Code of
Conduct and whistle-blower policies through annual compliancetraining, their employment contract, certification, and othertraining courses.
Maxeon’s established compliance and ethics helpline is available
24/7 online or via phone for all stakeholders, internal andexternal, to report any breaches or violations to our Code of
Conduct or applicable laws.

promoting inclusivity. We continue to engage a third party toassist in administering the helpline.
ENVIRONMENTIn the event of a breach, we achieve corporate compliancethrough the creation of a whistle-blower report which is assessedby an executive-led committee and subsequently investigatedbased on the nature of the incident. If needed, we employ
external consultants, including lawyers, accountants or otherspecialists, to manage the incident. Maxeon’s audit committee is

SOCIAL

responsible for reviewing all these reports and determining
remediation or corrective actions on a case-by-case basis.
For our Suppliers
We enforce strict adherence to our Code of Conduct for our
suppliers and their relevant stakeholders to maintain our high

GOVERNANCE

standards and ethical practices.

Employees on the solar rooftop of FAB4

77

© 2022 Maxeon Solar Technologies

APPENDIXGOVERNANCE

Business Integrity and Ethics

Internal Management System

SUPPLIER SUSTAINABILITY GUIDELINES FOR
INTERNAL MANAGEMENT SYSTEM

1

2

3

Company
Commitment

Management
Accountability andResponsibility

Legal and Customer
Requirements

INTRO

Upon engagement, we require our suppliers to either possess
or adopt robust internal management systems that fulfil
the requirements of our Supplier Sustainability Guidelines.
Their management system should enforce compliance to ourguidelines, as well as relevant laws, regulations and customer

6

5

4

Training

Improvement
Objectives

Risk Assessment andRisk Management

demands, across the supplier’s entire value chain. Moreover,the supplier’s management system should identify and negate
operational risks relating to our supplier guidelines whilst
striving for continuous improvement in managing their own

SOCIALsupply chain risks.

78© 2022 Maxeon Solar Technologies

ENVIRONMENT

7

8

9

Communication

Worker Feedback
and Participation

Audits andAssessments

11

10Documentation andRecords

Corrective Action
Process

GOVERNANCE

APPENDIXGOVERNANCE

Business Integrity and Ethics

Performance Highlights

INTRO

BUSINESS INTEGRITY AND ETHICS

2021

Maxeon regularly conducts a risk assessment to identify risks
affiliated with bribery and corruption. As our presence spans theglobe, when engaging with countries that fare poorly on the

Confirmed incidents of corruption and actions taken

0

ENVIRONMENT

Transparency International’s Corruption Perceptions Index,
we maintain corporate governance measures by acquiring

Operations assessed for risks related to corruption

100%

additional compliance certifications from relevant governmental
and regulatory bodies.

Confirmed incidents in which employees were dismissed
or disciplined for corruption

0

Looking Forward
Maxeon aspires to stay vigilant and continuously remain

SOCIAL
Confirmed cases of bribery and actions taken if any

0

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

0

compliant with emerging regulations whilst fortifying its policies
and procedures to ensure ethical and best business practices arereflected in our company culture and business dealings.

Number of public legal cases regarding corruption
brought against the organisation or its employees
during the reporting period

GOVERNANCE0

APPENDIX79© 2022 Maxeon Solar Technologies

GOVERNANCE

Product Quality, Reliability and Safety

Management Approach
Maxeon continuously strives for excellence in product quality,
safety and reliability. Our Quality Policy provides guidelines toensure zero compromises on all our products.
To adhere to our Quality Policy and ensure that we satisfy andexceed customer requirements, we have developed an extensive
set of controls and processes integrated along the entire productmanufacturing process. These entail innovative design, supplierselection and qualification for materials, effective and traceable

INTRO

Our business processes are segregated into three key functions:product development, realisation and distribution. Our Executive
Leadership Team is entrusted with carefully supervising theseprocesses to ensure we accomplish our predefined targets toenable closed-loop learning. Through consistent monitoring ofthese processes, we can identify opportunities to innovate andimprove, whilst accounting for our stakeholders’ considerations.
As depicted in the process map on the next page, our support
functions closely collaborate with product teams to ensure
excellence in production, synergy and overall efficiency.
SOCIAL

manufacturing controls and end-of-line testing with packaging.
All our manufacturing plants and R&D facilities have obtainedinternationally recognised certifications, including ISO 9001:2015
Quality Management Systems, ISO45001: 2018 Occupational
Safety and Health Management System and ISO14001: 2015
Environmental Management System. Additionally, in 2021
we extended the scope of our certifications to international
standards by conducting an audit to include SPMY-Modoc, which
was performed by an internationally accredited registrar.

QUALITY POLICY
MAXEON SOLAR TECHNOLOGIES, LTD.

MANAGEMENT SYSTEMCERTIFICATE(CORP-EHS-MAN-97262)
Certificate no.:10000407923-MSC-RvA-SGP

At Maxeon Solar Technologies:

Initial certification date:
15 July 2009

Valid:
16 April 2021 – 25 January 2023

This is to certify that the management system of• We hold ourselves to a higher standard, striving forthe highest levels of safety, quality and integrity.

• We push the boundaries of solar technology andcontinually improve.

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

has been found to conform to the Quality Management System standard:

ISO 9001:2015

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:

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.
Together, we are Powering Positive Change™.

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

APPENDIX
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© 2022 Maxeon Solar Technologies

GOVERNANCE• We thrive together and empower both decision-making

Jeﬀ Waters
Chief Executive Oﬃcer

80

ENVIRONMENTGOVERNANCE

Product Quality, Reliability and Safety

INTRO

MAXEON’S PROCESS MAP, REFLECTING OUR BUSINESSPROCESS INTERACTIONSLEADERSHIPENVIRONMENT

CLOSED-LOOP LEARNING

Product Design
SALES ANDDEVELOPMENT

Product Qualification
BOM Release
Supplier Selection

CUSTOMERS
AND RELEVANT
INTERESTEDPARTIESPRD Compliance

PRODUCTREALISATION
Manufacturing
Logistics / Packaging
Procurement
Facilities
Supplier Management

PRODUCT
DISTRIBUTIONFORECASTING
and PLANNING

PRODUCTDEVELOPMENT
NPI and
DEPLOYMENTMARKET
DEFINITION
AND PRODUCTREQUIREMENTS

Sales Channel
Management

MONITOR,MEASURE,ANALYSE AND
EVALUATE
CONTINUALIMPROVEMENT

SOCIAL

Customer Operations
Application Engineering
Aftersales + Training

Design Guidelines

CUSTOMERS
AND RELEVANT
INTERESTEDPARTIESGOVERNANCE

SUPPORT FUNCTIONS:EHS / FINANCE / LEGAL / QUALITY / SUSTAINABILITY / IT / HR /MARKETING AND COMMUNICATIONAPPENDIX81© 2022 Maxeon Solar Technologies

GOVERNANCE

Product Quality, Reliability and Safety

Our Initiatives
As a testament to our confidence in the quality of our products,
this year Maxeon introduced an industry-leading 40-year
warranty, alongside our existing 25-year warranty. Maxeon
conducts extensive testing of its panels to assure our customersof the panels’ manufacturing quality, performance and long-term
reliability. We certify all our panels via internationally recognised
external certification bodies including TUV, JET and UI, prior to
distribution for our customers.
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 Reliability Monitoring programme.

INTRO

In addition to manufacturing high-quality panels, we deploy theuse of our management processes to further control any changes
required that may impact the form, fit and function of the panels
assessed. Maxeon has established a sound iQuality systemthat collects and maintains quality and reliability information

ENVIRONMENT

pertaining to our panels, whilst actively upholding data integrity
and transparency.
At Maxeon, we undergo stakeholder engagement to determine
the quality, reliability and safety of our panels, identifying areas
for advancements to result in higher quality products. We gather

SOCIALvaluable and distinct insights from our employees throughengagement initiatives whilst encouraging ideation and feedbackfor improved, efficient and exceptionally reliable solar solutions.

We utilise our Reliability Monitoring programme to define
GOVERNANCE

the methodologies employed in our reliability assessments.
Furthermore, we have increased our inhouse testing capabilities
to include a new Reliability Testing Lab in Fab 3, our facility in
Malaysia, and we introduced new automated mechanical load
testers to further validate the reliability of our products.
Local FAB 3 management team regularly engaging manufacturing
Team Leaders at Cluster Meetings.

82© 2022 Maxeon Solar Technologies

APPENDIXGOVERNANCE

Product Quality, Reliability and Safety

INTRO

Performance Highlights
The quality, reliability, safety and durability of our solar panels
are certified through several reputable accreditation agencies
that evaluate our products based on overall quality as well

TYPICAL CERTIFICATIONSDESCRIPTION

IEC 61215: 2016

Terrestrial modules – Design
qualification and type approval

IEC 61730: 2016

Module safety qualification

IEC 61701: 2020

Salt mist corrosion testing

IEC 62804: 2015

Detection of potential-induced
degradation (PID)

UL 1703: 2019

Flat Plate PV Modules and Panels

IEC 62716: 2013

Photovoltaic (PV) modules –Ammonia corrosion testingas specific performance aspects. In addition to meeting thecertification requirements, our panels frequently outperform

ENVIRONMENT

these standards. For example, our IBC panels can generate up to
30% more energy in the same space over 25 years as compared
to conventional panels .
1

Maxeon has remained compliant and experienced zero casesof non-compliance with all regulations and voluntary codes
concerning the health and safety impacts of products andservices offered within the reporting period.

Looking Forward

SOCIAL

GOVERNANCE

We remain committed to delivering excellent solar panels as
demonstrated by their quality, reliability, durability and safety. We
aim to accomplish this by regularly engaging with stakeholders
and staying abreast of emerging industry trends, to further ourinnovative processes and reach unparalleled heights.
1.

Maxeon (400W, 22.6% efficient, 1.77 m²) compared to a Conventional Panel(350 W p-mono PERC, 19.2% efficient, approx. 1.82 m²) in the same
physical footprint.

83© 2022 Maxeon Solar Technologies

APPENDIXGOVERNANCE

Sustainable Innovation

Management Approach
In today’s volatile and fast-changing world, constant innovation

INTRO

Collaboration with Solar Energy Research instituteof Singapore (SERIS)

and development are key to maintaining a competitive advantage

To further our sustainability journey, Maxeon

and maximising our environmental and social impacts. We aspireis currently collaborating on two research

to meaningfully contribute to society through our productprojects with the Solar Energy Researchofferings and enhance our contributions through a focus on our

Institute of Singapore (SERIS) at the National

downstream and upstream supply chains. Through a collaborative

University of Singapore (NUS).

ENVIRONMENT

and innovative approach, Maxeon strives to work with andinfluence its suppliers to curate novel solutions and operating

The first collaboration focuses on developing, deploying andprocedures that enable the efficient use of materials. Furthermore,

applying photovoltaics in the dense and urban environment of

we seek to innovate our reliable and efficient solar technology to

Singapore. These Urban Solar solutions will propel Singapore andenable our customers to achieve greener practices, through theirother cities towards achieving self-sustaining communities.

transition towards solar power.

SOCIALThe second collaboration quantifies the benefits that highefficiency PV modules, such as those produced by Maxeon,
can have on the levelized cost of electricity in a tropical city
like Singapore.

GOVERNANCE

APPENDIX

84© 2022 Maxeon Solar Technologies

GOVERNANCE

Sustainable Innovation

Our Initiatives

INTRO

The patented metal foundation of our Maxeon® cells allows
flexibility under tough conditions, with a proven 40-year useful

Innovating to Meet the Demands of a Changing Climate
Our solar panels are built to withstand global warming challenges
and climate extremities, which are predicted to prevail in the
future. We conduct a Humidity Freeze test on our SunPower
Maxeon™ panels to assess their durability in the event of awhiplash during a freeze-thaw cycle. During this test, we conduct

life and a return rate of less than 0.005% on over 15 million
panels shipped and studied. Refer here to find out more.
ENVIRONMENT

Our durability assessments have resulted in the introductionof our 40-year warranty, as we remain confident in our panel
performance, achieved through innovation.

a temperature swing of -40 to +85°C, one cycle per day, witha heat and humidity factor of 85% RH, 85 °C. During this cycle

No grid lines

we impart high mechanical stresses on the components of the

SunPower Maxeon cells use back-contact conductivity, eliminating
unsightly metal gridlines, and enabling them to absorb more sunlight.

panel to determine their impact on performance. Our tests haverevealed that the mechanical stress does not affect our panels,

Solid metal backing

even after 380 cycles, which is beyond the requirement for

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

recognised external certifications. Amongst conventional panels,
this testing process results in a power loss after 10 to 20 cycles.

Thick connectors

SOCIAL

GOVERNANCE

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

APPENDIX85© 2022 Maxeon Solar Technologies

GOVERNANCE

Sustainable Innovation

INTRO

Product design and innovating with our suppliers

Introducing Maxeon Air™, a disruptive newin our value chain

technology platform

As we strive to achieve sustainable innovation, our efforts

Despite commercial buildings accounting for an estimated 28% ofexpand to modulization technology and product development.

global emissions, the opportunity for solar panel installations is

As key players in the solar industry, we are able to leverage ourhigh, yet not seized. As standard solar panels can be heavy andextensive knowledge of solar cell and panel engineering

complex for many industrial structures, these rooftops may also

processes to extend the capabilities of module efficiency without

not have ideal or favourable conditions to accommodate these

affecting the reliability, safety or performance of our products.

panels. As a result, increasingly there is an unserved annual

We aim to make our modules efficient as they consume fewer

market for low-load roofs of over 4 GW.

raw materials, including metal, plastic and glass, for every
watt-hour of energy produced.

Maxeon Solar Technology addressed this market opportunity

ENVIRONMENTSOCIALand has recently unveiled its new revolutionary Maxeon Air
We further enhance our modules by engaging lead-industry

Technology Platform. This was launched after five years of

suppliers to minimise the size of our junction boxes and ensure

thorough research, development and testing to enable theits optimal module placement to reduce the volume of plastic

production of a thin, frameless, lightweight and conformableused in the housing, cables, connectors and potting material.

solar panel, whose performance and efficiency are equivalent toOver the course of 2021, Maxeon introduced six new productsthat of a standard solar panel.

GOVERNANCE

and seven pilot-line developments. One of these developments is
our new technology platform, Maxeon Air™.

With this new development, we can now manufacture solar
panels at a reduced cost whilst accounting for market
opportunities and gaps. As the cost of solar cells have steadily
declined, Maxeon Air technology’s feasible size will result inseamless transportation and installation, ultimately reflecting a
relatively smaller portion of the total system cost.

86© 2022 Maxeon Solar Technologies

APPENDIXGOVERNANCE

Sustainable Innovation

INTRO

Maxeon Air is structured with an adhesive mounting system,

The Maxeon Air Technology Platform has the potential to bringwhich in tandem with the lack of a metal frame and heavy glass,the necessary transformative change to other solar power

contributes to its light weight of around 6 kg/m2. Our integrated

applications in due time, beyond just low-load commercial

adhesive layer enables the installation of our solar panels

rooftops. Our thin, lightweight, and conformable technology

directly onto the roof surface without any required racking,package has enabled a breakthrough of solar products suited foranchors or ballasts. Our peel-and-stick design was engineered toresidential rooftops, floating PV systems and e-mobility. As weconform to uneven roof surfaces, thereby reducing installation

continue to unlock new innovative potential, we are excited totime and subsequent business disruptions. The Maxeon Air

see the impact our new products will have in driving adoption

platform weighs less than half of standard solar panel systemsof solar power.

ENVIRONMENT

and greatly reduces the load installed on rooftops.
Our relentless efforts to identify opportunities to innovate boosts
In addition to the innovative features of panel design andour sustainability and efficiency ambitions and will ultimatelymaterials employed, Maxeon Air is fundamentally enabled by our

maximise our positive impact, whilst mitigating negative impacts

unique SunPower Maxeon Interdigitated Back Contact (IBC) cellacross our operations and supply chain.

technology with its superior corrosion resistance and ability tobend without harmful cracking. Maxeon’s IBC module technology
possesses the unique ability to transmit current even in shade,continuing to produce power in conditions that would not be
achievable by other solar panels. This feature, along with
inherently low temperature sensitivity, ensures that our panels
are industry-leading performers across various types ofweather conditions.

SOCIAL

Installation of Maxeon Air
solar panels

Enabling and supporting our customers’clean energy journey

GOVERNANCEAt Maxeon, we have created a 35-year legacy of pushing theboundaries of innovation to produce the most powerful, reliableand durable panels on the global market today. We are proud toenable our customers to power their homes and businesses withclean and efficient energy, using our solar panels.
APPENDIX87© 2022 Maxeon Solar Technologies

GOVERNANCE

Sustainable Innovation

INTRO

SUCCESS STORY

ApteraAptera is the most efficient solar electric vehicle that requires
no charging for most daily use. It was created from the

ENVIRONMENT

ground up with one purpose in mind — energy efficiency.
The solar electric vehicle is built from 3D printing, AI, andcomposite body, using 30% of the energy compared to otherelectric and hybrid vehicles on the road today.
Sunpower Maxeon solar cells allow the electric vehicle to

SOCIAL

travel up to 40 miles per day powered by the sun.
The vehicle is in pre-production and Aptera plans to produce
30,000 vehicles by 2025.
Aptera is a movement away from destructive energy andtoward a creative and sustainable future. On earth, for earth,
Aptera is for everyone.

GOVERNANCE

Click here to find out more.

APPENDIX88© 2022 Maxeon Solar Technologies

GOVERNANCE

Sustainable Innovation

INTRO

Performance Highlights
We are proud to produce environmentally friendly products
and play a positive role in the provision of our services. Ourachievements serve to propel our sustainability ambitions

ENVIRONMENT

and maximise our environmental impact across a plethora of
stakeholders. At Maxeon we continuously seek opportunities
to innovate and improve our product offerings, challenging
established industry boundaries. Despite the global pandemic,
we were able to deliver 899 MW of clean energy through our
products to our customers in 2021.

SOCIAL

Looking Forward
We aim to engage and partner with suppliers and customers
who envision a sustainable world that operates on clean,renewable energy. We endeavour to break the boundaries ofsolar innovation and establish ourselves as pivotal leaders incombatting global warming and climate change.

899 MW of clean energy

GOVERNANCE

delivered in 2021
APPENDIX89© 2022 Maxeon Solar Technologies

GOVERNANCE

Customer Engagement and Satisfaction

Management Approach
Customer satisfaction is the backbone of our business anddrives our purpose at Maxeon. As our products are used for

INTRO

Our Initiatives
Industry-Leading Warranty

our customers’ homes and businesses, maintaining strong

Beginning with installation through the end of a product’s

customer relationships is crucial. Through sustained customer

useful life, quality and durability are key to achieving customer

engagement, we can expand, develop and improve our solar

satisfaction. Our panels are now backed by a recently launched

technology to successfully aid in combatting the detrimental

40-year Complete Confidence Warranty which evokes customer

effects of climate change.

trust into our solar technology and panels. Through extensive

ENVIRONMENT

third-party assessments and field studies of more than 33
We maintain integrity and transparency in all our operations,million IBC panels deployed worldwide, we can determine theas customer loyalty and relationships are built on trust. We

impact of typical degradation and failure modes to productnurture our customer relationships through sustained customer

performance. Our experience enables us to deliver products

engagement and by consistently delivering high-quality products

proven to generate more energy, more reliably, with greaterand services through our installation partners and distributors.

savings over time.

SOCIAL

GOVERNANCE

APPENDIX

90© 2022 Maxeon Solar Technologies

GOVERNANCE

Customer Engagement and Satisfaction

Performance Highlights

INTRO

NPS SCORES OVER THE PAST FIVE YEARSCustomer satisfaction is paramount to our corporate purpose
and sustainability ambitions.
80

ENVIRONMENT

We employ a Net Promoter Scores (NPS) system to track theloyalty of our customers. The NPS is measured on a scale of
1 to 10, and customers who provide us with a rating of 9 or
10 are called ‘Promoters,’ as they are more likely to advocate
or recommend our products. Customers who rate us a 7 or

72
60
57
40

20

8 are referred to as ‘Passives’ as they are satisfied customers
without great inclination to promote the company and its
offerings. Customers who rate us at 6 or below are considered"Detractors" as these respondents are not satisfied andmay potentially share their negative perceptions. The NPS is

SOCIAL0
2017

Partner Health

2018

2019

2020

2021

Customer Healthcalculated by subtracting the percentage of Detractors from thepercentage of Promoters. Scores above 0 are considered good
and those above 50 are excellent.

GOVERNANCE

APPENDIX91© 2022 Maxeon Solar Technologies

GOVERNANCE

Customer Engagement and Satisfaction

In 2021, we embarked on several initiatives to maintain ourhigh NPS score, including:•Marketing – We increased our digital presence andcampaigns to create greater brand awareness. We also began
developing local content and revamping our newsletter toinclude an editorial approach to our organisational content
and business updates.

•

Customer HealthLong-term customer satisfaction with our solar technology isa key consideration at Maxeon. Therefore, we encourage ourcustomers to share their feedback on our products, installation
services and partners in three ways:•

ENVIRONMENT

Installation Experience Survey – A month after the panel
installation, we conduct a customer survey to ascertain how

Training – We engaged with external trainers to expand ourlikely the customer is to recommend their Maxeon installation

capabilities and partner with more companies, increasing

partner to friends, family or business partners. We also

our market presence. Additionally, we began to promote theseek feedback on their customer experience throughout

training material and contents we acquire from these sessions.
•

INTRO

SOCIALthe installation process (e.g., meeting commitments,

Product Development and Quality – We maintained our

responsiveness, system design, installation phase).

product quality and efficiency to ensure customer satisfaction.
We also strive for continuous innovation to launch new•

One-Year System Experience Survey – On the firstanniversary of a customer’s system installation, we send a

products with novel and more efficient solar technology.

second customer survey to decipher how likely the customer
In the event that we received a low score from a customer,

is to recommend our products and to what extent thesignifying them as a ‘Detractor,’ we are quick to respond to theirinstallation has met with the customer’s expectations.

GOVERNANCE

feedback to better understand their concerns and achieve
continuous improvement. At Maxeon, we measure NPS for•

Issue-To-Resolution – We maintain an open line ofboth the performance of our products (Customer Health) andcommunication for our customers to contact us with any

installation partners (Partner Health) who engage first-handquestions or concerns. After a customer issue is resolved,

with our customers.

we send a survey to our customer to evaluate theirresolution experience.

92© 2022 Maxeon Solar Technologies

APPENDIXGOVERNANCE

Customer Engagement and Satisfaction

Our NPS for Customer Health is an amalgamation of all the
responses from the three surveys above.
Partner Health
As means of ensuring holistic and 360° feedback, we conduct
an annual Maxeon Partner Survey to assess our performanceacross the different functions of our business. Through the
feedback obtained from our partners, we create an action plan
to improve our partner experience and resolve any issues,alongside our partners.

INTRO

Looking Forward
Maxeon is dedicated to achieving customer satisfaction byvaluing customer feedback and inputs. We remain committed to
evoking customer loyalty through the development of a soundand trusting relationship through our customer engagement and

ENVIRONMENT

industry-leading warranty. We strive to maintain a high NPS and
use it as a Key Performance Indicator (KPI) to determine areas
for improvement amongst our employees and partners. We arecommitted to innovating, developing and advancing our solar
technology through customer engagements and feedback.

SOCIAL

Moreover, like our approach to discover Customer Health,Maxeon’s Installation Partners also receive an Issue-To-Resolution
Survey for any queries they report to us. In 2021, we extended
our Issue-To-Resolution Survey to include Australia and theGreater European region.

GOVERNANCE

The NPS for Partner Health consists of a combination of resultsfrom these surveys, with the Annual Survey carrying the mostweight in the calculation.

APPENDIX

93© 2022 Maxeon Solar Technologies

Forward-Looking Statements

INTRO

This Sustainability Report contains forward-looking statements within the

These forward-looking statements are based on our current assumptions,meaning of the Private Securities Litigation Reform Act of 1995, including, but

expectations and beliefs and involve substantial risks and uncertainties that

not limited to, statements regarding: (a) our expectations regarding pricing

may cause results, performance or achievement to materially differ from thosetrends, demand and growth projections; (b) potential disruptions to our

expressed or implied by these forward-looking statements. The standards

operations and supply chain that may result from epidemics, natural disastersof measurement and performance contained in the Sustainability Report areor military conflicts, including the duration, scope and impact on the demand

developing and based on assumptions, and no assurance can be given that any

for our products, market disruptions from the war in Ukraine and the pace ofplan, initiative, projection, goal, commitment, expectation, or prospect set forthrecovery from the COVID-19 pandemic; (c) anticipated product launch timing

in this report can or will be achieved. The forward-looking statements are notand our expectations regarding ramp, customer acceptance and demand, upsell

guarantees of future performance and are subject to a number of risks. The

and expansion opportunities; (d) our expectations and plans for short- andreader should not place undue reliance on these forward-looking statements,

long-term strategy, including our anticipated areas of focus and investment,

as there can be no assurances that the plans, initiatives or expectations uponmarket expansion, product and technology focus, and projected growth andwhich they are based will occur. Factors that could cause or contribute toprofitability; (e) our ability to meet short term and long term material cash

such differences include, but are not limited to: (1) challenges in executing

requirements including our obligations under the long-term polysilicon supply

transactions key to our strategic plans, including regulatory and other challenges

agreement, our ability to complete an equity or debt offering at favorable terms,

that may arise; (2) our liquidity, substantial indebtedness, and ability to obtain

if at all, and our overall liquidity, substantial indebtedness and ability to obtain

additional financing for our projects, customers and operations; (3) our ability

additional financing; (f) our technology outlook, expected cost reductions, andto manage supply chain cost increases and operating expenses; (4) potential

future performance; (g) our strategic goals and plans, including partnership

disruptions to our operations and supply chain that may result from damage

discussions with respect to the Company’s next-generation technology, andor destruction of facilities operated by our suppliers, difficulties in hiring or

our relationships with existing customers, suppliers and partners, and our

retaining key personnel, epidemics, natural disasters, including impacts ofability to achieve and maintain them; (h) our expectations regarding our

the COVID-19 pandemic, or the war in Ukraine; (5) our ability to manage our

future performance and revenues resulting from contracted orders, bookings,

key customers and suppliers; (6) the success of our ongoing research andbacklog, and pipelines in our sales channels; (i) our projected effective tax

development efforts and our ability to commercialize new products and services,rate and changes to the valuation allowance related to our deferred tax assets

including products and services developed through strategic partnerships; (7)and (j) our goals, commitments, expectations, prospects, emissions, energy

competition in the solar and general energy industry and downward pressure

consumption, water consumption, and other environmental targets as well as

on selling prices and wholesale energy pricing; (8) changes in regulation andexternal ESG commitments. The forward-looking statements can be also identified

public policy, including the imposition and applicability of tariffs; (9) our ability

by terminology such as “may,” “might,” “could,” “will,” “aims,” “expects,” “anticipates,”

to comply with various tax holiday requirements as well as regulatory changes“future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Amongor findings affecting the availability of economic incentives promoting use ofother things, the quotations from management in this Sustainability Report and thesolar energy and availability of tax incentives or imposition of tax duties; (10)Company’s operations and business outlook contain forward-looking statements.

fluctuations in our operating results; (11) appropriately sizing our manufacturing94© 2022 Maxeon Solar Technologies

ENVIRONMENTSOCIAL

GOVERNANCE

APPENDIX

Forward-Looking Statements

INTRO

capacity and containing manufacturing and logistics difficulties that could arise;(12) unanticipated impact to customer demand and sales schedules due,among other factors, to the spread of COVID-19, the war in Ukraine and otherenvironmental disasters; (13) challenges managing our acquisitions, joint
ventures and partnerships, including our ability to successfully manage acquired
assets and supplier relationships; (14) reaction by securities or industry analysts

ENVIRONMENT

to our quarterly guidance which, in combination with our results of operations,
may cause them to cease publishing research or reports about us, or adverselychange their recommendations regarding our ordinary shares, which may
negatively impact the market price of our ordinary shares and volume of ourstock trading; and (15) unpredictable outcomes resulting from our litigation
activities or other disputes. A detailed discussion of these factors and otherrisks 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

SOCIAL

report on Form 20-F, particularly under the heading “Risk Factors”. Copies ofthese filings are available online from the SEC at www.sec.gov, or on the SEC
Filings section of our Investor Relations website at https://corp.maxeon.com/
investor-relations. All forward-looking statements in this press release are basedon information currently available to us, and we assume no obligation to updatethese forward-looking statements in light of new information or future events.
GOVERNANCE

APPENDIX

95© 2022 Maxeon Solar Technologies

Building a Better Tomorrow
POWERING POSITIVE CHANGE

For any questions on this Report, please contact us at:
esg@maxeon.com
To find out more about our ESG commitments, visit our webpage:https://corp.maxeon.com/esg
Our Content Index (Appendix) can be found here:
https://corp.maxeon.com/esg/sustainability-reports-appendix/appendix-2021© 2021 Maxeon Solar Technologies“By broadening our sustainability strategy to a global ESG platform, we
can make an even greater impact on the communities we serve. It’s acommitment inspired by our company purpose, Powering Positive Change™ –our steadfast belief that, by constantly improving ourselves, we help create
a better future for our planet, our stakeholders and our business.”
Jeff Waters
Chief Executive Officer
Maxeon Solar Technologies