2022 ESG
Sustainability ReportContents

Canadian Solar 2022 ESG Report

Forward Looking Statements

This report has been prepared by
Canadian Solar Inc. (the “Company” or“Canadian Solar”) to facilitate better
understanding of the Company’ssustainability strategy and performance.
The information contained in this report
has not been independently verified.
None of the Company or any of its
affiliates,
advisers,
directors,
or
representatives will be liable (innegligence or otherwise) for any losses
incurred from any use of this report orits contents or otherwise arising inconnection with the report.
Certain statements in this report are
forward-looking statements that involvea number of risks and uncertainties that
could cause actual results to differ
materially. These statements are madeunder the “Safe Harbor” provisions of
the U.S. Private Securities Litigation
Reform Act of 1995. Forward-looking

statements may be marked by suchterms
as“believes,”“expects,”“anticipates,” “intends,” “estimates,” orother comparable terminology. Though
the Company considers its expectations
expressed in such forward looking
statements reasonable, it cannot
guarantee
theirrealization.
The
Company refers readers to a moredetailed discussion of the risks anduncertainties
contained
intheCompany’s annual report on Form 20- F,
as well as other documents filed with
the U.S. Securities and Exchange
Commission.
In
addition,allinformation provided in this report,
includingtheseforwardlookingstatements, is as of the date of thisreport’s release on the Company’s
website unless otherwise stated, andthe Company undertakes no duty to
update such information except as
required under applicable law.

Contents
Message from the Chief Executive
and Chief Sustainability Officers

3

Highlights

4

About Canadian Solar

6

Sustainability at Canadian Solar
Approach to Environment, Health, and Safety (EHS)
Compliance with Environmental Regulations
International ESG Initiatives

8
9
9
10

Environment Metrics and Targets

12Greenhouse Gas Emissions
Energy Intensity
Water Intensity
Waste Intensity
Product End-of-Life Management and Recycling
Environmental Stewardship in Project Development
and Operations and Maintenance
Climate-Related Risks and Opportunities

15
20
23
25
26
28

Social Responsibility

34

Working at Canadian Solar
Equity, Diversity, and Inclusion
Talent Strategy, Training, and Development
Freedom of Association and Collective Bargaining
Occupational Health and Safety
Making the Difference through Community
Commitment

35
35
38
40
41
45

Responsible Supply Chain

50

ESG Integration in Supply Chain Management Strategy 51
Anti-Modern Slavery Initiatives
51
Supplier Code of Conduct
52
Supplier ESG Audits
52
Conflict Minerals
53

Governance

54

Board Committees
Summary of Board Members and Duties
Diversity of the Board of Directors
Board Expertise and Training
Executive Management
Ethical Business Conduct
Cyber Security

55
56
57
57
58
60
61

About this Report

62

APPENDIX:
Alignment with Standardized
Reporting Frameworks

64

TCFD Disclosures
SASB Index
GRI Metrics

64
65
68

31

2

Message from the Chief Executive and Chief Sustainability Officers

Canadian Solar 2022 ESG Report

Message from the Chief Executive and Chief Sustainability Officers
We are pleased to present Canadian Solar’s annual
ESG Sustainability Report, which showcases theincredible progress we have made as a clean energy
company committed to sustainable practices. As theworld faces pressing environmental challenges, weare proud to be at the forefront of the clean energy
revolution, driving positive change while deliveringvalue to our stakeholders.
This report serves as a transparent account of ourefforts to integrate sustainability into every aspect ofour business, showcasing the positive impact wehave had on the environment, our employees, thecommunities we serve, and broader stakeholders atlarge. We would like to highlight three key areas offocus in this year’s report:
1. We have significantly expanded ourparticipation in international ESG initiatives,
recognitions, and certifications. First, we aresupportersof
UnitedNations’
Sustainable
Development Goals, or SDGs. Recently, we joined theUnited Nations Global Compact, committing tosupport and adhere to the Ten Principles of the
UNGC on human rights, labor, environment, and anticorruption. We have also submitted a commitment
letter to SBTi indicating our intention to set the nearterm and net-zero science-based climate targets. Last
year, we received a Prime ESG rating from
Institutional Shareholder Services (ISS), placing usamong the top 5 percentile of the nearly 100 global
companies rated in our industry. We also received an

Excellent ESG rating from Achilles, a reputable UKagency evaluating environmental, social andgovernance factors across supply chains. We havealso committed to provide climate disclosuresthrough CDP and expect to receive a score this year.
In addition, we have expanded our universe ofcertifications in ISO 9001, ISO 14001, ISO 45001, ISO
50001, covering a range of management systems.
This is all in addition to the disclosures that we havebeen providing for three years in accordance with
SASB, TCFD and GRI. Finally, we remain the #1 mostbankable solar module supplier rated by Bloomberg
New Energy Finance, a recognition we have held formany years.
2. In addition to helping our customers and otherpartners reduce their carbon emissions andenvironmental impact, we also continue toreduce the environmental impact from our own
operations. In 2022, we reduced our year-over-year
GHG emissions, energy, water, and waste intensity
by 3%, 7%, 30% and 15% respectively. Specifically, on
GHG emissions disclosures, we made further
progress towards a more holistic measure of climate
impact, disclosing certain scope 3 emissions. And weremain committed to achieving 100% renewableenergy generation before the end of the decade. In
this year’s report, we highlight our focus on further
improving our positive impact on biodiversity,
especially during project development andoperations and maintenance of our solar and batteryenergy storage projects.

3. We continue to ensure ethical labor practices inour own operations and those of our suppliers.
Last year, we conducted 122 supplier ESG audits andinitiated a third-party assessment to evaluate theeffectiveness of our Anti-Modern Slavery Policy,
Supplier Code of Conduct, and Human Rights Policy
in preventing forced labor, among other initiatives.
Specifically, we engaged the Responsible Business
Alliance to conduct a Validated Assessment Program,the gold standard, covering areas of labor practices,

health and safety, environment, ethics, andmanagement systems. This is a lengthy process which
we are rolling out to various facilities and will reportback in due course.
We are proud of the progress we have made, but we
recognize that our ESG efforts are a long-term exercise
to improve and to hold ourselves accountable. We
thank you for your interest in Canadian Solar and lookforward to engaging with you further.

Shawn Qu

Hanbing Zhang

Chairman and Chief Executive Officer

Chief Sustainability Officer

3

Highlights

Canadian Solar 2022 ESG Report

Highlights
22-year track record as a global tier 1 player in thesolar industry
Around 94 GW of solar modules delivered to customers across the world,
equivalent to displacing approximately 240 million tons of CO₂ emissions,powering over 23 million households
Nearly 9 GWp of solar projects and 3 GWh of energy storage projects
energized worldwide
Over 18,000 employees globally
36% of workforce is female, with 25% of middle management positions and
8% of senior management positions filled by women in 2022
Bloomberg New Energy Finance – #1 most bankable solar module supplierwith 100% bankability
100% Revenues related to renewable energy
Solar modules have greenhouse gas (GHG) payback time of 1 year, after
which they become carbon neutral assets that typically last for 30 years or
longer
Italian EPD and French ECS Lifecycle certifications for solar modules

2017 --- 2022 Energy Conservation and Emission Reduction
20% decrease in
GHG emissions intensity

25% decrease inenergy intensity

67% decrease inwater intensity

45% decrease inwaste intensity

ESG Goals
On track to achieve the goal of powering global operations with 100%
renewable electricity before 2030
From 2022 to 2027, we are targeting:

28% decrease in
GHG emissions intensity

29% decrease inenergy intensity

26% decrease inwater intensity

23% decrease inwaste intensity

ISO Certifications:ISO9001 Quality management system
ISO14001 Environmental management system
ISO45001 Occupational health and safety system
ISO50001 Energy management system

4

Highlights

Canadian Solar 2022 ESG Report

Highlights
International ESG Initiatives and Recognitions

United Nations Global Compact
Active Participant

Climate Change 2023 Questionnaire
Submitted

ISS ESG Corporate Rating
Prime Status

Science Based Targets
Commitment Letter Submitted

Achilles ESG Assessment
Excellent Rating

RBA Validated Assessment Program
Silver-Level Recognition

By joining the United Nations Global Compact (UNGC), Canadian Solaris committed to supporting the Ten Principles of the UNGC on humanrights, labor, environmental, and anti-corruption, and contributing to theachievements of the United Nations Sustainable Development Goals(SDGs).
Our work has contributed to the following UN SDGs, including but notlimited to:5About Canadian Solar

Canadian Solar 2022 ESG Report

1 About Canadian Solar
Canadian Solar Inc. (the “Company” or “Canadian
Solar”) was founded in 2001 in Canada and is one of
the world’s largest solar and battery energy storage
companies.
Canadian Solar is a leading manufacturer of solar photovoltaic modules andprovides comprehensive solutions for solar energy and battery storage. It isalso a developer of utility-scale solar power and battery storage projects with ageographically diversified pipeline in various stages of development. Canadian
Solar has successfully delivered approximately 94 GW of premium-quality, solar
photovoltaic modules to customers. Moreover, since entering the project
development business in 2010, Canadian Solar has developed, built, andconnected nearly 9 GWp of solar power projects and 3 GWh of battery storage
projects across the world. Currently, the Company has approximately 600 MWpof solar power projects in operation, 7 GWp of projects under construction or inbacklog (late-stage), and an additional 18 GWp of projects in advanced andearly-stage pipeline. In addition, the Company has a total battery storage
project development pipeline of 47 GWh, including 2 GWh under construction
or in backlog and an additional 45 GWh at advanced and early-stage
development. Canadian Solar is one of the most bankable companies in thesolar and renewable energy industry, having been publicly listed on the
NASDAQ since 2006.

6
1 MW SunEnergy Utility Solar Plant, Spain

About Canadian Solar

The Company has two business segments:
CSI Solar and Recurrent Energy(formerly Global Energy).
CSI Solar consists of solar module and battery storage
manufacturing, and delivery of total system solutions,
including inverters, solar system kits and EPC(engineering, procurement, and construction) services.
CSI Solar’s battery storage business includes both its
utility-scale turnkey battery system solutions, as well
as a small but growing residential battery storage
business. These storage systems solutions arecomplemented with long-term service agreements,
including future battery capacity augmentation
services.
Recurrent Energy (formerly Global Energy) is one of
the world’s largest clean energy project development
platforms with 14 years’ experience delivering nearly 9
GW of solar power projects and 3 GWh of battery
storage projects. It is vertically integrated and hasstrongexpertiseingreenfieldorigination,
development, financing, execution, operations andmaintenance, and asset management.

Canadian Solar 2022 ESG Report

North America
CanadaGuelph: Global HQ
Calgary

EuropeU.S.

Austin: North America HQ
Walnut Creek
New York City

Germany
Munich: EMEA CSIS HQFrankfurt

U.K.

LondonAsia PacificFranceP.R. China

Madrid: EMEA RE HQ

Biarritz

Milan

AmsterdamSuzhou: China HQ
BeijingChangshu
FuningYancheng
DafengLuoyang
BaotouJiaxing
JiuquanSuqianXiningTaiyuan
Jinan
Guangzhou
Hong Kong, SAR

Spain
Italy

PolandWarsaw

Netherlands

Taiwan, China
Hsinchu

Latin America

Japan

BrazilSão Paulo

MexicoMexico City

Colombia
Bogotá

Chile

Santiago

Middle East
and Africa
U.A.E.

South Korea
Seoul
GwangjuIndia
New Delhi

Thailand
ChonburiVietnamHai Phong

Malaysia
Kuala Lumpur

Singapore
Singapore

Australia
Melborne
SydneyTokyo
Osaka
Fukuoka
Sendai

Manufacturing operations

Abu Dhabi
Dubai

South Africa
Cape Town

7

About Canadian Solar

Canadian Solar 2022 ESG Report

Sustainability at Canadian Solar
As a global leader in the renewable energy sector, Canadian Solar's mission is to power theworld with solar energy and contribute to creating a cleaner Earth for future generations.

The following corporate policies provide a framework for Canadian
Solar’s sustainability commitments:

Environmental
Environment,
Occupational Health,and Safety Policy (link)

The total electricity generated by 94 GW of cumulative solar modules we shipped over the past 22 years is1
equivalent to displacing approximately 240 million tons of CO₂ emissions or powering over 23 million
households.
At Canadian Solar, we embed Environmental, Social, and Governance considerations into our business andstrategic decisions, continuously striving to improve our practices to ensure long-term sustainability.

Code of Business Conduct and Ethics (link)
Whistleblower Policy (link)
Insider Trading Policy (link)
Related-Party Transactions (link)
Prohibition against Giving Bribes (link)
Prohibition against Accepting Bribes (link）

Environmental

Committing to socially responsible
and equitable outcomes

Demonstrating responsible conduct
Policies and procedures
Board level oversightAppropriate due diligence processes
Responsible supply chain management
Robust ESG reporting
Transparency and risk management

Labor and Human Rights Policy (link)
Equal Employment Opportunity Policy (link)
Anti-Modern Slavery Policy (link)
Diversity Policy (link)
Supplier Code of Conduct (link)
Conflict Minerals Policy (link)

GovernanceWorking sustainably within our planetary boundaries
GHG emissions and manufacturing energy intensity
Commitment to 100% renewable energy before 2030
Solar PV system carbon payback time of 1 year
Water intensity management
Material use, waste, and circularity
Environmental stewardship in project development
Assessing climate risks and opportunities

SocialGovernance

1 Actual CO₂ net avoided emissions depend on specific PV project location, application, and grid electricity mix. The estimate presented here intends toprovide an approximate value of the contribution of PV energy production against climate change. Calculations are based on utility PV annual averagecapacity factor and avoided CO₂ emissions rate as reported by the U.S. Environmental Protection Agency (EPA). GHG emissions from PV modules and balanceof systems (BOS) manufacturing, as well as transport, construction, operation and decommissioning have been taken into account. Please see EPA website
for further details (link).

SocialHuman rights
Equal opportunity employer
Equity, diversity, and inclusion
Talent strategy, training, and development
Freedom of association and collective bargaining
Health and safety
Community commitments and partnerships

8About Canadian Solar

Canadian Solar 2022 ESG Report

Approach to Environment, Health, and Safety (EHS)
Canadian Solar is committed to providing a safe and fulfilling work
environment for all our employees and contractors. Additionally, we strive
to minimize the impact of our business operations on the environment,
respecting nature, and biodiversity.
To attain environmental excellence, we implement
measures aimed at preventing pollution, conserving
energy, and managing waste, particularly in relation tohazardous or restricted substances. We develop
products that utilize raw materials and processes thatminimize environmental impact throughout the
product life cycle from design and manufacturing tocustomer use and end-of-life disposal. Prioritizing thesafety and well-being of our employees, contractors,
and partners, we strive to maintain an injury-freeworkplace, deploying advanced standards andsystems to uphold this commitment.

We have standardized our EHS objectives to facilitatecontinuous, measurable enhancements across ouroperations. Environmental, health, and safety
considerations are integrated into every facet of
Canadian
Solar'soperation
throughourcomprehensive management system, which isgrounded in recognized third-party standards. These
include ISO 14001 (environmental management
system), ISO 45001 (occupational health and safety
management
system),
ISO50001(energymanagement system), and other industry bestpractices.

Compliance with Environmental Regulations
100% of Canadian Solar’s revenues are derived fromrenewable energy, as our business model is basedon helping our customers achieve their clean energy
goals. That said, we are cognizant that our
manufacturing operations produce wastewater, airemissions, noise, and other industrial waste.
Canadian Solar abides by environmental laws andregulations, and has obtained all necessary
environmental permits, including those related towastewater discharge, air emissions, and thehandling and disposal of solid and hazardous waste
and chemicals to conduct business at existing
manufacturing facilities. We also continuously
monitor regulatory changes in the jurisdictions inwhich we operate to remain in compliance with
relevant environmental laws and regulations.
Furthermore, Canadian Solar carries out extensive
environmental, health, and safety studies during thedevelopment stage of our solar and battery storage
projects to assess and reduce their environmental
impacts and potential hazards to employees.
We have intensified the inspection of our suppliers’
ESG performance and implemented ESG compliance
audits across our supply chain since 2021.

300MW solar plus 561MWh storage, Slate solar and battery storage plant, U.S.

conditions of use. Our system solutions, including
string inverters, comply with the European Union’s
RoHS (Restriction of Hazardous Substances) Directive
2
2011/65/EU and its amendments. Our photovoltaic
modules are exempted from CLP (Classification,
Labelling, and Packaging of substances andmixtures) regulation according to (EC) No.
1272/2008.
All our photovoltaic module designs undergo
Toxicity Characteristic Leaching Procedure (TCLP)
testing to monitor the presence of any toxic metal
substances (arsenic, barium, cadmium, chromium,lead, mercury, selenium, silver) according to TCLP
Standard EPA Test Method 1311, as issued by the
U.S. Environmental Protection Agency (EPA) under
the Toxic Substances Control Act (TSCA) for landfill
disposal of modules. We also closely monitor
regulations under the EPA’s TSCA, governing the
manufacturing and use of chemical substances in
the U.S. Our photovoltaic modules adhere to thelatest ruling requirements over PBT Chemicals(Persistent, Bioaccumulative, and Toxic) under the
TSCA.

At the product level, our solar modules and systemsolutions adhere to the European Union’s REACH(Registration,
Evaluation,
Authorization,
andRestriction of Chemicals) regulation for chemicals(EC) No. 1907/2006 and follow the implementation
guidelines issued by the European Chemical Agency(ECHA). Our products, classified as “articles” within
the REACH directive, do not release any chemical
substances under normal or reasonably foreseeable

2 Solar PV modules are exempted from European Restriction of Hazardous Substances (RoHS) legislation as part of the decision from the European
Commission to ensure the achievement of renewable energy targets. Per article 2 of the RoHS directive, “This directive does not apply to: […] photovoltaic
panels intended to be used in a system that is designed, assembled and installed by professionals for permanent use at a defined location to produce
energy from solar light for public, commercial, industrial and residential applications.”9

About Canadian Solar

Canadian Solar 2022 ESG Report

International ESG Initiatives
ISS ESG Corporate Rating, Prime Status
Canadian Solar was awarded a “Prime” ESG status with a B rating by ISS ESG (link) in early 2023. This rating
places Canadian Solar among the top 5% or as one of the industry leaders or in the top 5% in thesemiconductors sector. The ISS ESG Corporate Rating provides investors with a highly relevant, material,
sector-specific and forward-looking assessment of a company's environmental, social, and governanceperformance. ISS ESG is the responsible investment arm of ISS (Institutional Shareholder Services Inc.). ISS,
founded in 1985 and headquartered in Maryland, the U.S., is the world’s leading provider of environmental,social, and governance solutions for asset owners, asset managers, investors, and asset servicing providers.
ISS ESG awards “Prime” status to companies with an ESG performance above the sector-specific prime
threshold.

Achilles ESG Score, Excellent Rating
Canadian Solar received an Excellent rating, from Achilles (link), the highest possible rating. The Achilles ESG
score allows companies to quickly see potential environmental, social, and governance issues in their supply
chains through a series of rigorous questionnaires. Achilles pre-qualifies suppliers, scores them, andbenchmarks each supplier across ESG, financial, and health and safety standards. Founded in the 1990s andheadquartered in Abingdon, U.K., Achilles currently serves a network of over 550 buyers and 100,000
suppliers across various industries.

United Nations Global Compact (UNGC)
In June 2023, Canadian Solar joined the United Nations Global Compact, the world’s
largest corporate sustainability initiative (link). By joining the UNGC, Canadian Solar
demonstrated our committment to supporting and adhering to the Ten Principles of theUnited Nations Global Compact on human rights, labor, environment, and anticorruption, and taking actions to contribute to the United Nations’ Sustainable
Development Goals (UN SDGs) (link). Launched in 2000, the UN Global Compact
comprises of more than 9,500 companies and 3,000 non-business signatories based inover 160 countries and more than 70 local networks.

The Distribution of Ratings indicates the company's performance relative to its industry peers.

10About Canadian Solar

Canadian Solar 2022 ESG Report

CDP Climate Change Disclosure
Canadian Solar participated in CDP Climate Change 2023 Questionnaire (link), responding to questions
related to climate risks and low carbon opportunities. The CDP (formerly Carbon Disclosure Project) is aninternational non-profit organization that runs global disclosure systems for investors, companies, cities,
states, and regions to manage their environmental impact. CDP is headquartered in London, U.K. with
operations in Japan, India, China, Singapore, Germany, Brazil, and the U.S. CDP’s online response system for2023’s climate change disclosures opened in April 2023 and closed in late July 2023. We are expected to obtaina score from CDP in late 2023.

SBTi (the Science Based Targets initiatives)
Canadian Solar submitted a commitment letter indicating our intention to set the near-term and net-zeroscience-based climate targets with SBTi (link) in July 2023. The SBTi is a global body enabling businesses to
set ambitious emissions reduction targets in line with the latest climate science. The SBTi’s goal is toaccelerate companies across the world to support the global economy to halve emissions before 2030 andachieve net-zero before 2050. The initiative was established in 2015 and is a collaboration between CDP, theUnited Nations Global Compact, World Resources Institute (WRI) and the World Wide Fund for Nature (WWF)and one of the We Mean Business Coalition commitments. SBTi’s Head of Standards is in London, the U.K. The
SBTi defines and promotes best practice in science-based target setting, offers resources and guidance toreduce barriers to adoption, and independently assesses and approves companies’ targets.

RBA Validated Assessment Program
The Responsible Business Alliance Validated Assessment Program (RBA VAP) (link) is the leading standard for
onsite compliance verification conducted by RBA-accredited independent, third-party firms. This on-site audit
covers the areas of labor practices (including ensuring there is no forced labor), health and safety,
environment, ethics, and management systems. An RBA VAP audit was conducted at Canadian Solar’s
factory in Thailand in 2023 by TUV Rheinland. Our factory was recognized by RBA and earned a Silver-level
recognition for the VAP audit, fully in compliance with “Freely Chosen Employment” rules, in other words,
no presence of forced labor. The RBA was founded in 2004 and is headquartered in Virginia, U.S. It is theworld’s largest industry coalition driving corporate social responsibility in global supply chains.
Canadian Solar has initiated the RBA VAP program in Thailand, home to one of our major manufacturing
facilities and plans to conduct further third-party audits at both our own operations and supply chain.

340 KW LV CORN Commercial Solar Rooftop, Philippines

11Environmental Metrics and Targets

Canadian Solar 2022 ESG Report

2 Environmental Metrics and Targets
Average module wattage (W)Canadian Solar is a technology-driven company and has delivered groundbreaking
innovations over the years that have helped make solar PV and battery energy storage themost promising solutions to meet global decarbonization goals.

655
620

In most markets, solar PV is now the mostaffordable and cleanest source of electricity, andenergy storage will help further expand thepenetration of clean energy technologies acrosspower grids.
The solar PV technologies developed by
Canadian Solar have greatly improved theefficiency and durability of solar modules while
lowering the manufacturing cost. As a result, theLevelized Cost of Energy (LCOE) of solar energy
continues to decline, further improving energy
affordability for end consumers. Technologicalinnovations have also enabled us to improve ourmanufacturing processes regarding greenhousegas (GHG) emissions, energy intensity, water
intensity, and waste intensity, thus shortening
solar power plants' energy and GHG payback
time using our modules.
Battery energy storage has emerged as a crucialcomponent for the integration of intermittent
renewables such as solar energy into the grid.
With the growing prevalence of renewableenergy and a notable decrease in lithium
carbonate prices, demand for battery energy
storage is increasing exponentially. As a firstmover in this field, Canadian Solar has establisheditself as an industry leader having delivered 3 GWhof utility-scale battery energy systems andprojects. On the solar PV technology front, weachieved a significant milestone in 2016, launching
the industry's first half-cell solar modules, whichhave now become the predominant technology. In
subsequent years, we introduced PassivatedEmitter Rear Cell (PERC) technology and broke the400W module wattage barrier by mass-producing
166mm wafer-size modules - another industry
first. We continued to innovate by launching larger
wafer size modules of 182mm and 210mm. Theselarger wafers facilitate higher module wattage,and higher wattage modules yield lower
environmental footprint and balance of system(BOS) costs, ultimately driving down the LCOE ofsolar power projects.
Most recently, we started mass production of Ntype TOPCon (Tunnel Oxide Passivated Contact)solar modules that have a power output of up to
700W. Our TOPCon modules further improve
module efficiency, have lower degradation andhigher bifaciality,3 therefore, further reducing the
LCOE and enhancing the performance of solar
power projects.

541
468

278 295

2010

310

318

345

406

2015

430

2020

Our current product portfolio includes TOPHiKu7 Ntype TOPCon modules of 700W and HiKu7 P-type
PERC modules of 675W. Our solar module efficiency
increased to up to 22.8% in 2023 from 13.9% in
2010.
Continuous technological innovations have allowed
us to produce an increased number of solar
modules without increasing the amount ofmaterials. As a result, we are reducing theenvironmental footprint during manufacturing, andproviding our customers with better economics and
ESG performance in solar power projects.

2023E

2027E

utility-scale battery energy storage solution SolBankin 2022. SolBank is an enclosure for battery storage
based on lithium iron phosphate (LFP) chemistry,offering up to 3 MWh of usable energy capacity.
The SolBank product has a proprietary design witha liquid-cooling system and an active-balancebattery management system (BMS), which caneffectively prevent fire accidents and prolong
system lifetime by reducing capacity degradationand performance discrepancies among cells. Our
SolBank products have high cycle efficiency, which
reduces the overall costs and environmental
footprint of a battery energy storage projectthroughout its lifetime.

In the realm of battery storage, we launched our

3 for bifacial modules that generate power from both sides of the module. Higher bifaciality means higher efficiency of the back side, generating
more electricity for the power plant.

12

Environmental Metrics and Targets

Canadian Solar 2022 ESG Report

Understanding the Environmental Impact ofManufacturing
We evaluate the environmental impact of our manufacturing operations based on thefollowing framework:
Production scale & process efficiency. We are
rapidly adding manufacturing capacity to meet thegrowth in demand for clean energy. The more we
produce, the more energy and water we consume,and the more waste and greenhouse gas (GHG)
emissions we release. By improving the efficiency of
our manufacturing processes, we can decreaseenergy and water consumption, and waste
generation, and GHG emissions per unit produced.
Therefore, energy and water use efficiency areparameters during the design of manufacturing
processes
andselectionofmanufacturing
equipment.
Scope of manufacturing and level of vertical
integration. Crystalline silicon PV manufacturing
comprises ingot, wafer, cell, and module production
processes. The higher the level of vertical integration,
the more in-house manufacturing capacity we haveand therefore, the more energy and water we
consume and the more waste we generate for our
production. This directly affects our environmental
footprint. However, by internalizing production, weManufacturing Capacity Expansion Roadmap
Over the past few years, we have significantly
expanded our solar manufacturing capacity and thelevel of vertical integration, as shown in the chart.
This has naturally resulted in higher total energy
consumption, GHG emissions, water withdrawal, andwaste production.

have greater control over the environmental
footprint of the products that we produce. Regarding
battery energy storage, our current manufacturing
operations are mainly in the production of battery
packs, modules, and full containers, which create
little environmental impact.
Product technologies. To a large extent, the choiceof product technologies decides our manufacturing
processes and thus defines the environmental
footprint of our manufacturing operations. We are
currently transitioning from P-type to N-type
technologies. The two leading N-type technologies
we produce are TOPCon (Tunnel Oxide PassivatedContact) and HJT (Heterojunction), albeit HJT is still on
the pilot line. Compared with N-type HJT and P-type
PERC, N-type TOPCon products require longer
manufacturing processes and therefore consume
more energy during production. That said, we aim tofurther reduce the environmental footprint of oursolar manufacturing business, as our TOPCon
products provide higher product efficiency andreduceper-watt
energy,water,
material
consumption, and GHG emissions.

However, thanks to our continuous improvements intechnology, manufacturing processes, and efforts inenergy savings, the energy intensity of ourmanufacturing processes on a per-watt basis willcontinue to decrease.

Manufacturing Capacity, GW
75
60
50 50
35

32
24
12

20 20 20

50 50

20

14

5

Dec 2021A

Dec 2022A
Ingot

Dec 2023E
Wafer

Cell

Mar 2024E
Module13

Environmental Metrics and Targets

Canadian Solar 2022 ESG Report

Well on track to achieve the goal of powering
all our operations with 100% renewable energy
before 2030

Total Electricity Consumption (%)

Canadian Solar remains steadfast in our commitment to power global operations
with 100% renewable energy by 2030, setting an intermediate target of 74% by 2027.
In pursuit of this goal, our focus is on reducing electricity and energy consumption
and augmenting the usage of renewable energy across our operations.
2020

2021

2022

2027

2030

Renewable energy %

20%

23%

29%

74%

100%

Total Electricity Consumption(MWh)1,127,000

1,434,000

1,825,598

A significant portion of our scope 1 and scope 2
carbon emissions (see definitions in the subsequent
section) originate from the electricity consumed byour manufacturing operations. Consequently, ourtop priority is to source the electricity fromrenewable energy resources, which can reducecarbon emissions from our production and thus
reduce the carbon footprint of our products.
Most of our manufacturing facilities are in China
where solar energy has reached grid parity. In 2021,
Chinese regulations started allowing green
electricity trading in the electricity market andendorsing PPAs signed directly between renewableenergy producers and electricity users (link). These

regulations have allowed us to start procuring clean
energy more proactively for our own operations. For
instance, in 2022, we procured 16,000 MWh of green
electricity for one of our manufacturing facilities in
Zhejiang Province.
Altogether, signing renewable PPAs, procuring
renewable energy from spot markets, and generating
power from our rooftop solar power systems form thecritical pathways to our goals.
Moreover, we anticipate the proportion of renewableenergy in power grids to increase in the coming years
due to the higher penetration of renewable energy.
This will naturally expedite our efforts toward achieving
our decarbonization goals.

2021

2022

2023E

Non-renewable Energy from the Grid

2027E

2030E

Renewable Energy from the Grid

Green Electricity Purchase from Spot Market

Green Power Purchase Agreement

Solar Power Generation from Rooftop

Key Environmental Achievements over 2017 - 2022

20%

25%

67%

45%

GHG Emissions
Intensity

Manufacturing
Energy Intensity

Manufacturing
Water Intensity

Manufacturing
Waste Intensity

The following sections present detailed environmental intensity metrics for all our global
manufacturing operations, encompassing ingot, wafer, cell, and module production. These metrics arecalculated using the weighted average intensity of each manufacturing process with the actual
production output of each manufacturing site.

14

Environmental Metrics and Targets

Canadian Solar 2022 ESG Report

Greenhouse Gas Emissions
Canadian Solar measures and reports Greenhouse
Gas (GHG) emissions in line with the ISO140641:2018 standard (Specification with Guidance at theOrganization Level for Quantification and Reportingof Greenhouse Gas Emissions and Removals) (link).
Since 2021, we have consistently reported scope 1(direct GHG emissions) and scope 2 (indirect GHG
emissions from imported energy) from all our global
manufacturing operations.
In 2022, we broadened our reporting scope toinclude certain scope 3 emissions, primarily focusing
on category 3 (indirect GHG emissions fromtransportation) and category 4 (indirect GHG
emissions from products used in our manufacturing
operations*), based on the availability of activity
data.

Based on these changes in reporting boundaries and emission factors, we have recalculated our carbon
emissions from 2017 to 2021.

GHG Emissions Intensity (tCO₂eq/MW)-28% to 2027
or 34 tCO₂e/MWp lower

154

Our GHG emissions metrics are comprehensive,
covering total emissions of scopes 1, 2, and 3 as wellas the intensity of scopes 1 and 2 associated with ourmanufacturing processes. Additionally, we offer
insights into product-level carbon emissions using
Life Cycle Assessment (LCA), French Energy
Regulatory Commission (CRE) standards, and Italian
Environmental Product Declaration (EPD).

126

126

126

123

123

115
89

Ingot

Wafer
Cell
ModuleMethodology
In 2022, we implemented several enhancements to
our greenhouse gas inventory, expanding the depth
and breadth of our reporting. The following changes
were introduced:
1. Organizational boundaries: we expanded thescope of our inventory to incorporate newly added
facilities, which included one module, cell, and ingot
facility. In addition, we integrated our energy
storage and inverter manufacturing facilities into ourcoverage.
2. Reporting boundaries: our reporting parameters
were extended to capture indirect emissions fromupstream and downstream transportation, as well as
indirect emissions stemming from water usage and2017

service consumption, such as construction andcatering. These fall under scope 3 per the GHG
Protocol definitions.
3. Emissions factors: we updated the emission
factors used in our calculations to reflect the mostrecent data and guidelines. Specifically, we adjusted
the fuel emission factors for operations in Thailand
and Vietnam according to the UK Environmental
4
Agency 2022 updated data, updated electricity
emission factor for Thailand in accordance with the5Thai Government Ministry of Energy (EPPO) 2022
updated data, and updated electricity emission
factor for Vietnam in accordance with the6
Department of Climate Change 2021 updated data.

*Note: Category 1-6 are defined in the ISO14064-1:2018 standard, whereas scope 1, 2, and 3 are defined in the GHG Protocol (link). Categories 1 & 2
correspond to scope 1 & 2, respectively, and scope 3-other indirect GHG emissions includes category 3-6. We use the term “scope” going forward.
4 https://www.gov.uk/government/publications/greenhouse-gas-reporting-conversion-factors-2022
5 https://www.eppo.go.th/index.php/en/en-energystatistics/CO2-statistic
6 http://www.dcc.gov.vn/van-ban-phap-luat/1101/He-so-phat-thai-luoi-dien-Viet-Nam-2021.html

2018

2019

2020

2021

We use GHG emissions intensity or carbon intensity(emissions per MWp) as our key reporting metric,
facilitating straightforward comparisons acrossdifferent years. The GHG emissions intensity
provided on the chart comprises only scope 1 andscope 2 emissions.
In 2022, we achieved 123 tCO₂e/MWp, better thanour goal of 124 tCO₂e/MWp. This accomplishment
was mainly driven by a 16% decrease in carbon
intensity for the cell production process and anincrease in cell conversion efficiency, coupled with
our energy reduction measures, such as the energysaving reconstruction of Process Cooling Water(PCW) and optimizing air conditioning use in thewarehouse.

2022

2023
Goal

2027
Goal

Our objectives for 2023 include a 7% reduction incarbon intensity compared to 2022 levels, and by2027, we aim to reduce carbon intensity by 28%
compared to 2022 levels. We intend to achieve thesetargets by continuing to increase product wattage
and taking further energy-saving measures.
Moreover, we are increasing capacity in highefficiency N-type TOPCon modules and lowering
silicon usage, such as using thinner wafers tominimize silicon grams per watt.
In 2022, our total scope 1 direct GHG emissions were
75,647 tCO₂e, or tons of CO₂ equivalent, and scope 2
indirect GHG emissions were 1,213,638 tCO₂e. For adetailed breakdown of these emissions, please referto the following charts:

15

Environmental Metrics and Targets

Canadian Solar 2022 ESG Report

Scope 1

Scope 2

Stationary combustion

8,483

1%

Imported electricity

1,202,047

93%

Mobile combustion

538

0%

Imported steam

11,591

1%

Process emissions

29

0%

Fugitive emissions

66,597

5%

Total

75,647

6%

Total

1,213,638

94%

Process emissions decreased to 29 tCO₂e in 2022 compared to 16,468 tCO₂e in 2021 due to an improved
calculation methodology of NO₂, which was advised by a reputable third party certified by CNAS (China
National Accreditation Service for Conformity Assessment) during the 2022 calculations.
Fugitive emissions increased to 66,597 tCO₂e in 2022, compared to 35,184 tCO₂e in 2021 mainly due to theemissions from newly established manufacturing facilities. These fugitive emissions were measured based onpurchased volume instead of actual emissions.
The following table presents our scope 3 emissions in 2022:

Scope 3Category

Description

GHG emissions(tCO₂e)Ratio

GHG emissions from the transportation of raw
materials to produce ingot, wafer, cell, and module,
including trucks, planes, and ships.
Upstream transportation

Downstream
transportation
Purchased goods andservices

Total

Note: Upstream transportation emissions also include theraw material transportation from our own ingot to wafer,wafer to cell, and cell to module factories.
GHG emissions from transporting modules to ourcustomers, including the part we are responsible foraccording to freight terms (e.g., DDP, DAP, FOB, CIF.)
GHG emissions from tap water purchased and the useof services, such as construction, catering, etc.

51,09220%

In 2022, our aggregate GHG emissions including scope 1, 2, and 3, were 1,545,462 tCO₂e. This is a 26%
increase relative to our emissions in 2021. The increase was predominantly driven by the addition of new
production sites (contributing +12%) and higher production output from our existing factories (adding +14%),
partially offset by our energy conservation measures, which led to a reduction in our scope 1 emissions in
2022 relative to 2021. There are slight differences in 2021 emissions numbers which are mainly due to thechange in emissions factors as discussed earlier. A comprehensive comparison with our 2021 GHG emissions,
categorized into respective sub-scopes, can be seen in the following table:

GHG emissions (tCO₂e)

2022

Emissions Scope

New factories

Existing factories

Total

Total

Scope 136.416 (+80%)

39,231 (-14%)

75,647 (+66%)

45,464

Stationary combustion

32

8,451

8,483

9,740

Mobile combustion

15

523

538

490

Process emissions

13

17

29

50

Fugitive emissions

36,35630,24066,59735,184

Scope 2

107,162 (+11%)

1,106,476 (+16%)

1,213,638 (+27%)

952,591

Imported electricity

107,162

1,094,884

1,202,047

941,013

Imported steam-

11,591

11,591

11,579

Scope 3

2,197 (+1%)

253,980 (+12%)

256,177 (+13%)

226,512

Upstream transportation

940

50,15351,092

33,216

Downstream transportation

440

200,381

200,821

189,210Purchased goods and services

817

3,446

4,264

4,087

Total

145,775 (+12%)

1,399,687 (+14%)

1,545,462 (+26%)

1,224,568

The following charts show the distribution of our GHG emissions (including scope 1, scope 2 and certain scope
3 emissions) of each manufacturing process. Our ingot and wafer manufacturing operations contributed
more to our total carbon emissions in 2022 than in 2021, mainly due to the increase in monocrystalline ingot
pulling and wafer production output. In 2022, our newly established energy storage and inverter
manufacturing operations each accounted for 0.1% of the total emissions.

Carbon Emissions in 2022
200,821

256,177

Carbon Emissions in 2021

78%
3%

27%

4,264

2021

2%

100%

6%

33%

31%

Energy Storage 0.1%
Inverter 0.1%

6%

22%

3%

Auxiliary Materials

Auxiliary Materials

Ingot

Ingot

Cell

35%

34%

Cell

ModuleModule

Wafer

Wafer

16

Environmental Metrics and Targets

Canadian Solar 2022 ESG Report

Solar System Life Cycle Analysis

Case Study: Improved PV System’s GHG
Payback Time with N-type Technology

Project location

Texas, US

Module type

BiHiKu7

BiHiKu7

TOPBiHiKu7

1,146

1,146

1,089

tCO₂/MW229,200

229,200

217,810tCO₂

Project lifetime

30

30

30

Years

Total production

12,554,054

10,139,812

10,522,810

MWh

Net GHG emissions avoided is a comprehensive metric utilized to gauge the potential oftechnology in mitigating global warming. For solar power systems, net emissions avoided
are calculated by multiplying the total GHG-free energy production by the local electricity
grid emissions rates and then discounting the solar system's carbon footprint. This
calculation considers the GHG emissions from the system’s entire life cycle, including
manufacturing solar modules and components, transportation, construction, operation,and decommissioning.

System carbon footprint

The GHG payback time represents the duration required for the surplus GHG emissions
linked to the system's whole life cycle to be neutralized by its net GHG avoided emissions.

Gross emissions avoided

We calculated the net GHG emissions avoided and the GHG payback time for three utilityscale solar projects. These projects were in Texas, U.S. and Cote d’Azur, France. We
considered the following factors in our analysis:
Solar power plants were equipped with either Canadian Solar’s BiHiKu7 or TOPBiHiKu7
modules
The installed capacity of each plant was 200 MWp
The projects used single-axis trackers
The projects are expected to produce electricity for 30 years before decommissioning

Cote d’Azur, France

Unit

GHG Potential Avoided Emissions
7

222,272

26,02627,009tCO₂/year

Net avoided emissions

214,632

18,386

19,748tCO₂/year

Net avoided emissions (lifetime)

6,438,969

551,566

592,447

tCO₂/year

GHG payback time

1.0

8.8

8.1

Years

7 Avoided emission rates and capacity factors sources: the U.S. Environmental Protection Agency (https://www.epa.gov/avert/avoided-emission-ratesgenerated-avert), version 4.1, and the French CRE. Compared to previous sustainability report, a revised capacity factor of 26% has been retained for the
Texas project calculations.

119 MW Horus Utility Solar Plant, Mexico

17Canadian Solar 2022 ESG Report

As presented in the analysis, net avoided emissions of
the Texas solar plant are 214,632 tCO₂ per year,
amounting to 6,438,969 tCO₂ throughout its lifetime.
The GHG payback time is approximately 1 year, whichis representative of many global markets as the shareof fossil fuels in Texas’ electricity mix amounts toapproximately 65%, comparable to the worldwide
8
average of 62%. This means solar power plants using
Canadian Solar modules will generate emission-freeelectricity in most markets for the remaining 29 years.
In France, the GHG payback time increases to 8.8
years due to a substantially lower avoided CO₂ ratecompared to Texas, which
is 77 kgCO₂/MWh(according to PVsyst 7.3, link) and 543 kgCO₂/MWh(according to U.S. EPA, link), respectively. This isbecause France is a market with an uncharacteristicallyhigh penetration of nuclear power. Even so, the GHG
payback time accounts for less than one-third of its
assumed lifetime, which is still attractive from adecarbonization standpoint.
Our TOPBiHiKu7 modules, with higher electricity
production,
contribute
even
more
towards
decarbonization goals. Our N-type TOPCon bifacial
modules have higher power, superior energy yield,
lower LCOE, and enhanced reliability. In the exampleof the solar projects in France, using our new
TOPBiHiKu7 products instead of BiHiKu7 increases theannual net emissions avoided by 7%, reducing the
GHG payback time by nearly 9 months.

214,632 tCO₂/year net avoided emissions
Equivalent to avoided greenhouse gas emissions from91.4 million L
Gasoline consumed

27,051
Households' energy use

Equivalent to carbon absorbed by
3.5 million
Urban tree seedlinggrown for 10 years

255,952
Acres of US forests(Calculated by EPA Greenhouse Gas Equivalencies Calculator)
100 MWp Azuma Kofuji solar project, Japan

8 Source: Our World in Data based on BP Statistical Review of World Energy, Ember Global Electricity Review (2022) & Ember European Electricity Review (2022)

18

Environmental Metrics and Targets

Canadian Solar 2022 ESG Report

Module Carbon Footprint Improvement
To provide customers with low-carbon module
products, we have been pursuing the Evaluation
Carbone Simplifiée (ECS) certification following therequirements of the French Energy Regulation
Committee (CRE) solar tender since 2015. The ECS
certification follows the ISO 14040 and ISO 14044
Life Cycle Assessment standards and calculates theunit carbon emissions of our products from cradle togate, as shown in the following chart on the right.
According to the ECS certification, our high-efficiency
N-type HJT HiHero module's carbon emissions are
below 400 kgCO₂e/kWp, and that of our mono-PERC

EPD

solar modules using 182mm and 210mm siliconwafers are below 500 kgCO₂e/kWp. These figures are
significantly lower than the industry average ofapproximately 500-550 kgCO₂e/kWp, highlighting ourcommitment to low-carbon solar products.
We have established a roadmap to further bring down
our modules’ carbon footprint based on French CRE
methodology as shown in the following chart. N-type
HJT and N-type TOPCon have distinct advantages dueto thinner wafers and a higher efficiency compared to
PERC.

ECS
Disposition

Raw material
extraction
Transport tocomponent
fab

Maintenance

Manufactureofintermediate
products

Construction

Transport to
PV plant

Manufactureof PV module

Transport tomodule fab

Alongside the French ECS certification, we have also
secured the Italian Environmental Product Declaration(EPD) certification, which can be accessed here. EPD
offers a comprehensive, globally recognized certificationthat gauges the environmental impact of solar modules
throughout their entire life cycle, cradle-to-grave, as
shown in the left chart. The EPD certification particularly
emphasizes the assessment of climate change, ozone
depletion, acidification, eutrophication of water,
photochemical ozone formation, consumption of abiotic
resources, and water consumption of a solar system. Thisevaluation aligns with the ISO14040 and ISO14044 Life
Cycle Assessment standards, as well as ISO14025 andEN15804 standards. The EPD certification is crucial forsolar project developers and investors to evaluate solar
power plants' Return on Energy (RoE). Using the scenario
of a solar power plant installed in Rome, Italy, the RoE of
our solar modules is less than 2 years.

Product Carbon Emission Reduction Roadmap (%)
HJT

100%
94%

TOPCON

PERC

89%
80%
78%

78%

77%

CFP (Carbon Footprint of
Products) reduction methods:
Efficiency improvement
Thinner wafer
Process energy savings

76%

79%
73%

70%

65%

67%

60%
55%

2020

2021

2022

2023

2024

2025

52%

2026

75%

64%

50%

2027

19

Environmental Metrics and Targets

Canadian Solar 2022 ESG Report

Energy Intensity

Air Emissions Breakdown
We abide by the environmental laws and regulations
applicable in each jurisdiction where we operate. Ourcommitment is not only to comply, but also tominimize the environmental footprint of air emissions
resulting from our manufacturing activities. To ensure
this, we conduct routine monitoring and assessmentsof all relevant emissions. We employ techniquessuch as exhaust management, filtration, catalyticoxidation, and others to limit emissions. A
comprehensive breakdown of our air emissions isprovided in the table below.

Energy Intensity (MWh/MW)
224
184

185

185

183

171

-29% to 2027
or 50 MWh/MW lower
156
121

9

Air emissions(global, metric tons)

2017

Nitrogen oxides (NOₓ)

28.1

37.4

38.2

33.9

13.6

18.0

Sulfur oxides (SOₓ)

0.1

0.2

0.1

0.1

0.1

0.1

Fine dust (PM10)

3.7

7.4

9.1

14.8

15.7

15.5

Hazardous air pollutants (HAP)

0.2

0.9

0.6

6.6

10.1

12.4

Volatile organic compounds (VOCs)

12.2

4.1

16.4

13.7

17.5

30.6

Persistent organic pollutants (POP)

0

0

0

0

0

0

3.4

23.2

16.2

23.3

30.2

39.2

2018

2019

2020

2021

2022
Ingot

10

Other standard air emissions

Over the past few years, as we shifted fromproducing polycrystalline to monocrystalline solar
modules, our cell production process has required
less nitric acid. This change has contributed to thesubstantial reduction of NOₓ emissions since 2021,
and we anticipate a further decline in NOₓ emissions
in 2023. Our wafer and ingot production volumes saw
significant growth in 2022, leading to an increase inNOₓ emissions. Despite a considerable increase inproduction volume during 2021 and 2022, our PM10

and HAP emissions remained steady. VOC emissions
increased in 2022 due to a new VOC collection
system installed at our new factories, reducing thelevel of fugitive VOC emissions. Other standard air
emissions, mainly ammonia, increased in 2022 dueto the significant increase in our cell production
output. A new ammonia recycling system will be
installed in late 2023 and will thus significantly
reduce ammonia emissions starting in 2024.

9 Certain historical figures contain measurement abnormalities which we cannot revise given the amount of time that has lapsed. Consider 20202022 figures as the most accurate and reflective measurements of our actual air emissions. While the Company’s emissions already comply fully
with local regulations, the Company is making significant efforts to further treat and reduce air emissions.
10 From 2020, ammonia NH3 emissions have been included in “other standard air emissions”, and we started monitoring HAP emissions in our cellmanufacturing operations, as per relevant Chinese air quality control regulations.

Wafer
Cell
Module

2017

2018

2019

2020

2021

To monitor our energy intensity throughout our
ingot, wafer, cell, and module manufacturing
operations, we use production-weighted averagecalculations across the production sites. Thisapproach provides an accurate and representative
snapshot of the energy intensity of our global
manufacturing operations. However, it may slightly
underrepresent the potential energy savings
potential from newer production workshops, which
typically ramp up production through the year.
We achieved a 7% or 12 MWh/MW year-over-year(“yoy”) reduction of energy intensity in 2022
compared to 2021, slightly exceeding our 2022 targetof 167 MW/MW set in 2021. This was due to theenergy intensity increase of our ingot production, a
12% yoy in 2022 compared to 2021, as wetransitioned from polycrystalline to monocrystalline

2022

2023
Goal

2027
Goal

ingot production, and capacity utilization rate waslower in the second half of 2022 due to the COVID
control measures implemented in China. Raw
material purification also resulted in higher energy
intensity in ingot production. Despite this, weachieved a yoy energy intensity savings of 14%, 19%
and 15% for our wafer, cell, and module productionsin 2022 compared to 2021, respectively.
The yoy reduction in energy intensity in 2022 wasprimarily driven by advancements in producttechnology, such as our transition to N-type TOPCon
modules, which increased our product power output
and thus reduced our energy use on a per-wattbasis. The use of thinner wafers, which lowered thegrams of silicon per watt, also contributed to thedecrease in energy intensity.

20

Environmental Metrics and Targets

Canadian Solar 2022 ESG Report

Another significant contributor to the yoy decrease in energy intensity was our execution of energy savings
projects, which yielded a total energy savings of 30 GWh in 2022, including 22 GWh of electricity, 7,600 tonsof steam, and 200,000 nm³ of gas. We implemented 107 energy saving projects in 2022, including a heatrecovery system at our Baotou ingot workshop, and more efficient chiller at our Yancheng and Funing cellworkshops to supply chilled water to manufacturing process.

Case Study: Energy Management System
Project achievements:
Six of our manufacturing facilities have obtained
ISO50001 energy management certification. We plan
to have another three facilities certified under
ISO50001 in 2023

Case Study: Baotou Ingot
Install new water source heat pump system to save gas consumption
Gas saving measures:Install new water source heat pumps to utilize the energy from hot water to provide
heat for AC systems in winter and cooling for PCW (Process Cold Water) systems in
the production area, contributing to circular use or energy

Three manufacturing facilities in China and ourThailand manufacturing facility received “Green
Factory” award from the local government authorities

Gas

Boiler

Heat

PCW
SystemAC
SystemHeat

We strive to continually lower our energy intensity and meet our 2027 goal through measures such asenhancing our product output and efficiency, implementing energy conservation initiatives, and driving
circular use of energy, and further implementing energy management systems.

Cooling

Water Source
Heat Pump

Project Achievements:
Saved up to 20,000 m³ gas per year (Baotou site)
Studying the similar applications in our other businesses
30 MW Shilou Utility Solar Plant, China

21

Environmental Metrics and Targets

Canadian Solar 2022 ESG Report

Energy Consumption Breakdown
Energy Consumption Breakdown by
Manufacturing Process (GJ)

2021

2022

Ingot

1,117,316

1,153,399

Wafer

393,012555,127

Cell

2,647,008

3,024,054

Module1,150,120

1,345,103

Auxiliary Materials

166,048

148,096

Total

5,473,504

6,225,779

In 2022, we achieved an 18% decrease in steam and a 7% decrease in gas despite a significant increase inproduction output. This was mainly driven by energy conservation projects implemented across our
manufacturing facilities, especially at our Baotou ingot and Yancheng cell factories.

In terms of total absolute energy consumption, there were slight increases in each production process
resulting from the increase in production output. As previously discussed, our production output increased by
36% for ingots, 63% for wafers, 41% for cells and 38% for modules in 2022 compared to 2021. This increase inproduction output resulted from the higher energy consumption in 2022.

Energy Consumption
11
Breakdown by Resources

2017

2018

2019

2020

2021

2022

Total energy consumption (GJ)

2,002,393

2,701,707

3,757,188

4,286,130

5,473,504

6,225,779

Gas

11,29524,02040,24959,001

192,332

178,836

Diesel

2,536

2,455

2,162

3,164

4,321

3,890

Gasoline

3,737

700

857

2,535

1,786

2,580

Steam

133,523

136,874

166,942

165,157

112,433

91,820Grid electricity

1,800,956

2,474,601

3,484,479

3,972,449

5,078,445

5,816,234

Self-generated solar PV electricity

50,346

63,05662,50083,824

84,187

132,419of which:

11 Numbers reported in this table may differ slightly from previous sustainability report editions. We have revised historical calculations for
accuracy and prior report estimations should no longer be considered. Self-generated PV electricity share has been revised in accordance with
SASB (Sustainability Accounting Standard Board) standard reporting practices.

Lavras Phase II 79 MWp, Brazil

22

Environmental Metrics and Targets

Canadian Solar 2022 ESG Report

Water Intensity
Case Study: Cell Workshop

Water Intensity (t/MW)

Improvements in cell process parameter setting to save the water
consumption.

2,249

Water conservation measures:-26% to 2027
or 196 t/MW lower

1,508
1,302

1,248

Continually optimize the parameter of graphite boat cleaning, texture, PSG
removing, alkali polishing. Standardize water inflow rate over each equipment.

1,059
750

642

554

Graphite Boat
Cleaning

Ingot

Save 545T purewater per day

Wafer
Cell
Module

2017

2018

2019

2020

2021

Water intensity is defined as the total amount ofwater withdrawn from all sources per MW produced.
We use production-weighted averages across all our
manufacturing units to track our water intensity, as
shown in the above chart.
We achieved a yoy reduction of 29% or 309 t/MW inwater intensity in 2022 compared to 2021,
surpassing our 2022 target of a 22% yoy reduction.
This success was primarily due to the continued
deployment of larger size 210mm wafers and cell
operations. The efforts we made to increase productefficiency, coupled with water-saving initiatives, also
contributed to the decrease in water intensity.
In terms of absolute figures, we saved 992,000 tonsof water in 2022. Looking ahead, from 2023 to 2027,

2022

2023
Goal

2027
Goal

we plan to reduce our water consumption further byfurther enhancing our manufacturing and productefficiency, alongside implementing additional watersaving measures.
PV solar manufacturing can be water intensive. As
more complex cell technologies gain market share,
demand for ultra-pure water quality continues toincrease. At Canadian Solar, the sustainability of ourlong-term operations is of paramount importance.
Through our water conservation and recycling
programs, in conjunction with improvements inmodule efficiency and production yield, we
successfully
achieveda67%
reductioninmanufacturing water intensity between 2017 and2022. During the same period, absolute water
withdrawal only increased by 55% despite our global
module shipments increasing by more than 3x.

Alkali Polishing
Save 130T purewater per day

PSG Removing

TextureSave 155T purewater per day

Save 270T purewater per day

Project achievements:
Manufacturing water intensity reduced by 76 t/MW (~11%).
Similar measures have been deployed at Yancheng and Thailand factories from thesecond half of 2022, with expected annual water withdrawal savings of up to
100,000 m³, which is equivalent to 40 Olympic-size swimming pools of water saved.

Did you know? According to the U.S. Environmental Protection Agency, an average
American family uses more than 300 gallons of water per day at home (approx. 1.25
tons). The average U.S. residential solar system is around 7 kW. By these metrics, ittakes the same amount of water as an American family uses in five days to manufacture
the solar modules in an average residential system in the U.S. The amount of waterused is lower for most other regions, although residential solar systems are also
smaller outside of North America (3-5 kW).

23

Environmental Metrics and Targets

Canadian Solar 2022 ESG Report

Water Risk Management Strategy
Water conservation is one of the top priorities in oursustainability initiatives. As such, we aim tocontinuously improve our production utilization
rates and reduce water withdrawal from ourmanufacturing businesses. Water saving experts are
involved as we design our production processes toensure water saving technologies are integrated
from the very beginning. Our goal is to maximize
water utilization rates by considering the water
quality requirements for each process and recycling

A detailed breakdown of our operations’ withdrawals from high BWS areas for our module, cell, wafer, andingot manufacturing operations is shown in the table provided below:

water appropriately to maximize its use.
In 2022, 100% of our water withdrawals came frommunicipal freshwater supplies, the same as inprevious years. All data on water withdrawals anddischarges discussed in the following table arebased on invoices provided by water and wastewater
utilities, whereas the quantities of recycled water are
determined through direct meter measurements
within our facilities.

Water withdrawals in high or extremely
high Baseline Water Stress locations(thousands m³)

2017

2021

2022

Module337 (6%)457 (5%)419 (5%)

Cell

1,587 (28%)

554 (6%)0

Wafer

1,429 (26%)

1,181 (13%)

975 (11%)217 (4%)790 (9%)667 (8%)118 (1%)137 (1%)

2020

2021

2022

Ingot

Total water withdrawals (thousand m³)

8,418

9,027

8,550

Auxiliary materials

Withdrawals within high baselinewater stress areas (%)

45%

34%

28%

Total water consumption (thousand m³)

3,634

2,653

2,170

Consumptions within high baselinewater stress areas (%)

57%

30%

26%

Total water recycling (thousand m³)

2,480

1,930

1,972

Water recycling rate (%)

30%

21%

23%

We achieved a yoy reduction in total water
withdrawals of 5% or 477,000 tons in 2022 compared
to 2021, despite a significant increase in production
volume. In addition, our total water consumption
decreased by 18% or 483,000 tons in 2022 compared
to 2021. These were mainly driven by the
implementation of more efficient production tools aswell as further improvements in water conservation
measures.
In 2022, our total water recycling rate rose to 23%,up from 21% in 2021, attributed to the initiation ofwater recycling projects at our cell and wafer
manufacturing facilities. As we look to 2023, we
expect our total water recycling rate to surpass 25%.

This together with the implementation of additional
water recycling projects and water conservation
measures, will help decrease our water intensity
even further.
In recent years, we have strategically relocated ourmanufacturing operations to areas with lower
Baseline Water Stress (BWS), as categorized by theWorld Resources Institute (WRI) Water Risk Atlas tool,
Aqueduct. This move has significantly mitigated ourwater access risk. Our primary strategy istransitioning our manufacturing base from regionswith high to moderate or lower baseline water
stress.

Overall, the proportion of our total water withdrawal in such areas decreased to 25% (2,198 thousand m³) in
2022 from 64% (3,570 thousand m³) in 2017. The operational commencement of our new ingot facility in
Qinghai province, China, in 2023 is projected to further alleviate the water access risk for our ingot
manufacturing operations. We conduct Environmental Impact Assessments (EIA) for new manufacturing sites
before construction. This assessment includes the creation of a detailed water balance chart, and an in-depth
review of water stress and freshwater resources, thus reducing potential water supply risks.

Share of production in regions with high or extremely
high baseline water stress (BWS) (%)
64%

63%
52%
45%
34%
25%

2017

2018

2019

2020

2021

2022

23%
2023

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Water Pollutants and Effluents
We aim to ensure safe, reliable, and sustainable water
access for our operations and the local communities
impacted by our activities. We adhere to all relevant
local and international laws and regulations
concerning wastewater pollutants. We rigorously
analyze our potential impact on local water resourcesand other water users, devising strategies to minimize
this impact. We collect wastewater during production

and treat them internally to meet our internal
control criteria before we send it to local wastewater
treatment facilities for secondary filtering until final
water discharge requirements are met. The
following table provides a detailed breakdown of
wastewater-relevant
pollutants
andeffluents
generated by our production and COD, a measure ofwastewater and its condition.

Wastewater pollutants / measure(global, metric tons)

2021

2022

Fluoride

21.1

21.0

Suspended Solids (SS)

186.6

146.9

Ammonia Nitrogen

23.6

22.9

Total Nitrogen

65.2

57.6

Chemical Oxygen Demand (COD)

288.3

283.8

Waste Intensity
Waste Intensity (t/MW)
16.5

16.7

-23% to 2027
or 2.1t/MW lower

13.1
9.1

Case Study: Cell Manufacturing Operations
Sludge reduction measures at wastewater treatment facility:
Add new recycling system to pump sludge back for sufficient reaction before
final discharge.
Increase the pressure of filter press from 1.0 MPa to 1.2 MPa.
Project achievements:
Wastewater treatment facility sludge (calcium fluoride) reduced 2,678
tons/year (sludge intensity decreased 52%).
Expanding the coverage of similar measures to our factories in Thailand andChina since Q4 of 2022.
Ca(OH)₂CaCl₂

Ca(OH)₂
CaCl₂

15.1
10.6

In 2022, we achieved a yoy reduction in waste intensity by 14% or 1.5 t/MW compared to 2021, surpassing ourtarget of 9.8 t/MW. This was mainly due to the deployment of new and more efficient manufacturing equipment
for large size 210mm wafer-based cells and the implementation of ambitious recycling and waste reduction
management programs. We achieved yoy reductions of 18%, 22%, and 27% in waste intensity for our ingot, wafer,and cell productions respectively in 2022.

8.7

Primary
reactiontankPrimary
sedimentation
tank

Secondaryreaction
tank

Secondarysedimentation
tank

7.0
Ingot

Wafer
Cell
Module

2017

2018

2019

2020

2021

2022

2023
Goal

2027
Goal

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Product End-of-Life Management and Recycling

Waste by Type and Disposal (kt)
129
98

93

82

Canadian Solar strictly complies with e-waste management laws and regulations in the
countries where we operate and advocates the recycling and reuse of end-of-life
products.

104

49

Disposed hazardous waste

Disposed non-hazardous waste
Recylced or reused hazardous waste
Recycled or reused non-hazardous waste

2017

2018

2019

2020

2021

2022

The total percentage of waste we recycled or reused decreased from 82% to 81% in 2022. This was mainly due toa change in the waste treatment method at our Thailand factory. Our total waste generation increased in 2022 as
we significantly increased our production output. That said, we managed to substantially reduce our total
hazardous waste from 3,800 tons in 2021 to 1,800 tons in 2022.

Disposed Waste Intensity
Disposed waste intensity, including landfill or incinerated waste, presents a more insightful measure of ourprogress towards more sustainable solar manufacturing than total waste intensity. From 2017 to 2022, weachieved a 69% reduction in disposed waste intensity.

Disposed Waste Intensity (t/MW)

In Europe, our solar PV modules have been fullycompliant with the Waste of Electric and Electronic
Equipment (WEEE) European Directive since 2014,
which regulates the proper disposal of solar modules
across all EU countries. We work closely with recycling
service providers such as PV CYCLE (link) and Take-eway (link) to ensure full compliance with all Waste
from Electrical and Electronic (WEEE) obligations andappropriate market import actions are followed. In
2022, our qualified partners repaired approximately
79,907 pieces or 18.3 MW of Canadian Solar modules
for reuse, while PV Cycle recycled around 2,500 pieces
or 0.6 MW. In 2023, we are also cooperating with
Ecoasimelec in Spain (link) for module recycling.

activities. Through this partnership, in 2022, 7,865
pieces of modules totaling 2.6 MW were recycled
through Reclaim PV Recycling. Aluminum frames
were disassembled and sold to aluminum recycling
companies, and the remaining module parts werebroken down using thermal deconstruction. These
components were then sorted and delivered to
relevant materials companies for reuse or safe
disposal.

In the United States, we partnered with a qualified
recycling service provider in 2022, resulting in therecycling of 3,830 module pieces, totaling 1 MW.

Longer-lasting solar modules translate into fewer
replacements or recycling needs. We are dedicatedto minimizing environmental impact and strive toenhance incoming material quality control,
implement stricter testing standards, and extend theuseful life of a solar module to 40 years.

In Australia, we have been collaborating with Reclaim
PV Recycling for solar module end-of-life management

In China, we joined a 3-year research project focusedon efficient silicon PV module recycling processes,
including module disassembly and cell recycling
technologies.

6.5
4.7

3.9
3.1
2.2

2.0

1.9

1.6

Ingot

Wafer
Cell
Module

2017

2018

2019

2020

2021

2022

2023
Goal

2027
Goal

Did you know? Typically, there are 5 layers in a crystalline silicon PV module: a front cover(tempered glass), the electrical circuit (solar cells matrix) in between two encapsulant layers(front/back), and a back cover (back sheet or tempered glass). Aluminum metal frames are used
to improve mechanical resistance of the PV modules and facilitate installation. Approximately
75% of a solar module’s weight is tempered glass, 10% plastic parts, 8% aluminum, 5% silicon,
and 1% other materials. Thus, 95% of the materials used in a typical silicon solar module can bedisassembled, sorted, processed, and recycled.

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Research and Development Roadmap
Investing in technological innovation is critical to Canadian Solar’s competitive
advantage and contribute to global decarbonization.

High Efficiency and Wattage ProductsLong Life and Low Degradation Products

Innovation
Collaboration
Responsibility

Specialty Products
Green and Low Carbon Footprint Products
Open Research and Cooperation

Our technology roadmap and expected contributions to various environmental metrics
for 2023 to 2026 are outlined below:
1. Following the launch of high-efficiency andenvironment-friendly HJT modules in 2021 forresidential and commercial roof applications, we
successfully developed TOPCon modules in 2022 andstarted mass production in 2023. We plan to increase
the TOPCon module power output from 690W in
2022 to 710W in 2025. The increased efficiency andwattage, as well as the production volume of TOPCon
modules, will help reduce our production’s energy andwater intensities and further lower the LCOE of solar
PV projects. We expect TOPCon modules to accountfor approximately 30% of total solar module
shipments in 2023.

2. After more than 3 years of research, we are readyto offer our extended lifetime solar modules,
projected to last up to 40 years. Designed for utilityscale applications, these modules are expected toreduce PV systems' carbon emissions by more than
33% due to their extended warranty and improved
performance.
3. In 2022, we launched steel framed solar modules,
which help reduce solar module energy intensity by
5% compared to the regular aluminum frame.
Currently, we are developing solar modules with ahighly engineered glass fiber reinforced composite(GFRC) frame, which features lighter weight and better
durability, and can contribute to an additional 4%
reduction in module energy intensity. The GFRC
framed modules’ GHG intensity is 60 tCO₂e/MW lower
than that of the aluminum framed modules. We
expect to launch the GFRC framed modules in thesecond half of 2023.
4. While most materials in solar PV modules can berecycled, it is often an expensive process. We aredeveloping fluoride-free modules, aiming to achievea recycling rate of over 95%. We plan to launch these
fluoride-free modules in 2024. Additionally, we arepartnering with external entities to create module
designs that are easier to recycle, innovate recycling
methods, and repurpose modules at the end of theirlifecycle.

5. Among all our manufacturing processes, ingot
pulling has the highest energy intensity andsignificant impact on cell efficiency. We continue toresearch ingot pulling methods, such as increasing
pulling speed and the number of ingots produced in asingle pulling process while reducing oxygen content
and increasing minority carrier lifetime. These
measures are expected to reduce energy intensity byat least 3% annually. Additionally, we have taken steps
to recycle the argon gas used in the process, which
will further reduce the carbon footprint of our ingot
process by an estimated 5%.
6. Wafering technologies are developing towards
even smaller diamond wires and thinner wafer
products. We plan to reduce the diameter of diamondwires and wafer thickness from 40um and 150um,
respectively, in 2022, to 28um and 135um in 2023,
and further to 26um and 100um in 2025. This is
expected to contribute to a 5% annual reduction in
production energy intensity by reducing cooling water
usage and consumption of polysilicon.
In addition, we are also developing andmanufacturing battery storage products and powerelectronics products such as inverters. These are highenergy density and high reliability products that havea less energy intensive manufacturing processes thansolar module manufacturing, and that play a criticalrole to reduce the LCOE of solar PV systems and toenable higher penetration of renewables in the global
power grids.

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Environmental Stewardship in Project Development and Operations and Maintenance
Canadian Solar ranks among the world's largest solar and energy storage
project developers. Our solar and battery storage projects developed
worldwide contribute positively to environmental sustainability and social
advancements by promoting the global adoption of solar energy.

To date, we have developed, constructed, andenergized nearly 9 GW of solar projects and more than
3 GWh of battery storage projects worldwide. The
clean energy generated by these facilities amounts toapproximately 63,000 GWh, which is equivalent to
supplying power to around 2 million households oroffsetting 33 million tons of CO₂ emissions.

Upon project approval by the IC, a comprehensive
project execution plan is developed. This high-levelstrategy not only outlines project execution and safety
but also includes measures to comply with local
environmental and biological laws and regulations,along with initiatives to minimize the potential
impacts.

Project development and operations and maintenance(O&M) activities, however, may have adverse
environmental, ecological, and biological impacts,
including visual impacts on land, habitat disruption,
construction noise, waste generation. We arecommitted to protecting biodiversity and minimizing
the potential environmental and ecological impacts by
taking the following measures.

An environmental O&M compliance plan is designed
for every project serviced by our O&M teams. This
plan provides guidance to ensure compliance with
ESG factors over the lifetime of the power plant. A
biological resources mitigation implementation andmonitoring plan is also developed for each power
plant to ensure compliance with local laws andregulations on biological permits.

From the early stages of project development for eachsolar and battery storage project, we incorporate
evaluations of environmental, ecological, andbiological impacts, regulatory requirements, andcommunity engagement. These assessments areintegral to our Investment Committee's (IC) approval
process for each project we undertake. Our teams are
required to provide detailed impact analyses spanningthe full life cycle of a project.

300MW solar plus 561MWh storage, Slate solar and battery storage plant, U.S.

Project
Development
Execution

Project Execution Plan (Environmental and Biological Items)

Power Plant
Operation and
Maintenance

Environmental O&M Compliance Plan

Environmental and biological permits
Training on site safety orientation, mandatory training, and certification,
emergency response training
Incident reporting: exposure data, incident notification, and investigation
Dust control plan
Fire safety plan
Emergency response plan
Spill prevention and response plan
Storm water pollution prevention plan

Onsite documentation, site access and ROW restrictions
Worker Environmental Awareness Program (WEAP)
General operations and maintenance activities avoidance andminimization measures
Dust control plan
Lighting plan and other visual resources management
Fire safety plan
Biological Resources Mitigation, Monitoring, and Reporting Plan
(BRMMRP)
Wildlife Prevention and Drainage, Erosion, and Sediment Control Plan
(DESCP)
Stormwater management plan and DESCP

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Protection of Biodiversity
We protect biodiversity as we develop solar and battery energy storage projects worldwide. For
projects we develop, we prepare biological protection plans, take measures, and obtain all
required approvals in terms of biodiversity protection as shown in the following table.
Preserving the local biodiversity is also important for power plants in which we provide O&M
services.

We implement a Worker Environmental Awareness Program (WEAP) for all projects we undertake. Before
starting work on project sites, all construction personnel are required to undergo WEAP which has four
primary objectives:
Acquaint the workers with applicable environmental laws and regulations;
Familiarize workers with potential sensitive biological, cultural, and paleontological resources in the
project area;
Outline measures designed to avoid any harm to these sensitive resources; andExplain the procedures to be followed if sensitive resources are encountered or in the event of complianceviolations.

Biodiversity
RelatedPermits andMeasures

Below are a few examples of specific measures we have taken in our commitment to biodiversity and efforts
to reduce the environmental and ecological impacts of our solar and battery energy storage development:
The environmental and safety performance of a
project is integrated into the KPIs of the EPC andO&M teams

Measures must be taken to ensure there is no
ground and surface water contamination at
project sites

Contractors hired by the company must have sitespecific environmental and safety plans to begin
construction

Project site layouts must be designed to minimize
potential visual impacts

Adopting new technologies, such as mix-use
projects incorporating agriculture and PV (AgroPV), for example, using sheep for vegetation
management around projects where permitted
Integrating biodiversity conservation plan into
projects’ environmental management plans

Worker environmental awarenessprogram
Biological Resources Mitigation,
Monitoring, and Reporting Plan
(BRMMRP)
Wildlife Prevention and Drainage,
Erosion, and Sediment Control
Plan (DESCP)
Designated biologist(s)Biological monitors
Wildlife entrapment avoidance
Storm water management plan
and Drainage, Erosion, andSediment Control Plan (DESCP)

Vegetation communities’
restoration and compensation
Riparian habitat
Prevent ponding
Weed management
Resource agency notifications
Delineation of work areas
Staging, stockpiling, and materials
storageSpecial-Status plant avoidance,
minimization, and compensation
Vehicle access and speed limits
Equipment parking and storage
Hazardous spills
Debris and trash disposal

Compensating land acquired during project
development to support native species, to beprotected and maintained for at least 20 years toensure a healthy habitat for native plant andanimal species
Module recycling on project sites where modules
have been damaged during installation. These
activities help ensure waste is not sent to landfills,
but to recycling facilities where the materials canbe recovered and reused
These efforts have helped us minimize project delays
related to environmental and ecological impacts orcommunity engagement, as these factors are
considered early during the project planning phase.

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Biological Resources

Case Study: Crimson Energy Storage Project
Biodiversity Efforts
The Crimson Energy Storage project is a 350 MW / 1,400 MWh stand-alone energy storage
project that provides flexible capacity to the California grid. This energy storage project wasdeveloped by Recurrent Energy, Canadian Solar’s wholly owned subsidiary, and is now 20%
owned by Recurrent Energy and 80% owned by a fund managed by Axium Infrastructure US Inc.
CSI Solar’s CSI Energy Storage team was the turnkey system integrator of the project who
delivered the full engineering, procurement, and construction (EPC) services and is now
providing the long-term operational services for the project. The Crimson Energy Storage
Project is in Riverside County, approximately 13 miles west of Blythe, just north of the Mule
Mountains and south of Interstate 10.

The following are the Environmental Awareness Training materials developed specifically for
the Crimson Energy Storage project:

General Avoidance Measures
Stay within marked project boundaries.
Use only approved access roads. Observe a
speed limit of 15 miles per hour on Powerline
Road and anywhere within the Project area.
Before moving a vehicle, check underneath fordesert tortoise or other wildlife.
Maintain and inspect all erosion and storm water
control measures.
Keep fluid spill-containment and clean-up
materials readily available. Clean up and report
all hazardous material spills immediately.
Do not discharge water into unapproved areas.
Prevent ponding of water.
Backfill potential wildlife pitfalls by backfilling or
sloping excavations. Cap pipes and culverts.
Do not bring pets, firearms or weapons to theProject site.
Dispose of all trash and leftover food items in
trash receptacles.

Special-status wildlife and rare plants are known tooccur in the Project area. Many of the biologicalresources found in the Project area are protectedby state and federal laws.
There will be no handling, feeding, or disturbing
wildlife. Do not touch any wildlife, especially
tortoises.
Equipment and vehicle maintenance and wash
areas will be located 100 feet from the upgradientside of any Environmentally Sensitive Areas forrare plants.
Notify a Biological Monitor if you believe a
protected animal or plant species is in an active
work area.
Biological Monitors will be on site to conduct
surveys, monitoring, and ensure compliance withall biological measures.

Unexploded OrdnanceUnexploded ordnance (UXO) are military
munitions that were used, but failed to function as
intended. UXO could be found at the Project site,and could be on top of soil and vegetation,
partially buried, or buried.
If you find possible UXO, avoid contact, GPS thelocation, mark the vicinity of the UXO discreetly,
take a photograph, and report it immediately.

Penalties for Non-ComplianceThis brochure outlines tips to avoid impacting
environmentally sensitive resources thus avoiding
violations of local, state and federal environmental
laws.

Cultural and Paleontological Resources
Cultural resources have been identifed in theProiect area. Previously unidentified cultural
resources may be affected during earth-moving
activities, clearing, grading, drilling, and trenching
These require appropriate treatment andprotection.
If you discover a potential cultural resource, stop
work and do not touch or move it. Mark the areawith flagging and contact a Cultural Resources
Monitor.
Paleontological resources, or fossils, are theremains, imprints, or traces of once-livingorganisms preserved in rocks and sediments.
These sediments in the Project area have potential
to yield signifcant fossil resources.
If you think you see a fossil, let your supervisor anda Paleontological Resources Specialist know. Do
not inspect, pick up, or pocket any fossils.

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Climate-Related Risks and Opportunities
100% of Canadian Solar’s revenues are derived from clean, renewable energy, which
contributes to the global decarbonization goals established in the Paris Agreement.
Climate-related risks pose a serious threat to human well-being and societal development.
Although our businesses contribute to the global decarbonization efforts, our operations,especially our module and battery storage manufacturing businesses have impacts on the

Potential Impacts

environment. We have set up an environmental management system that is certified under ISO14001 and 5year rolling targets on environmental metrics to measure, manage and minimize these environmental
impacts.

Climate-Related Risks
Climate-related risks associated with the development of our businesses are listed as below, including but notlimited to:

Climate-Related Risks

Time Horizon

Estimated Financial Implications

Management Method

Compliance with climaterelated regulations andinitiatives

Short to long term

There may be increased costs and administrative
responsibilities due to changes in regulations andpolicies in the areas of climate, energy, andenvironment

These may change depending on how the regulations andinitiatives will evolve and how they will impact our business

Monitor and comply with the development of theregulations and initiatives in an efficient way

Environmental impact fromour solar and battery
storage manufacturingbusinesses

Short to long term

Although 100% of our revenues are related torenewable energy, our operations, especially our
manufacturing activities, have impacts on theenvironment, from the perspective of GHG emissions,energy and water consumption, and waste generation

Our environmental related expenditure for 2022 was around
US$41 million, including capital expenditures and otherexpenses. The environmental related expenditure depends on
the scale of expansion of our business, and we expect it willcontinue to increase in 2023 and 2024, considering we are
significantly expanding our manufacturing capacities

We have established an environmental management
system that is certified under ISO14001 to measurethese impacts and set up 5-year rolling targets onenvironmental metrics to reduce the impacts

Environmental andecological impacts from oursolar and battery storage
project development
businesses

Short to long term

Environmental and ecological impact on thecommunity where we develop the projects, including
visual impacts, habitat disruption, wildlife fatalities, andconstruction noise

Project development related expenses are expected to increase
to optimize project design to minimize visual impacts, optimize
project locations to minimize the risk of habitat disruption, andminimize noise resulting from construction activities

We have integrated the environmental and ecologicalrisks associated with each of the project we develop
into our internal project review and approval process tominimize the impacts

Product end of life
management

Short to long term

Environmental impact of our solar modules after theycome to end of life

Product end of life management increases our R&D expenses interms of module recycling related technologies and technologies
to prolong module’s lifetime

Work on R&D activities related to module recycling andmodule lifetime extension

Environmental impact
among our supply chain

Short to long term

Our suppliers’ manufacturing activities have impacts
on the environment, such as GHG emissions, energy
and water consumption, and waste generation

We conduct supply chain ESG audit to make sure our
suppliers comply with our standards on ESG. We aim toleverage this exercise to reduce the environmental
impact from our suppliers

Please refer to our annual report Form 20-F filed with the U.S. Securities and Exchange Commission for a more detailed discussion of the risks associated with our businesses.

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Climate-Related Opportunities
The widespread adoption of renewable energy, including solar, is critical tomeeting global decarbonization goals. Meanwhile, solar has become oneof the cheapest sources of energy with the most competitive Levelized
Cost of Energy (LCOE) across the global major power markets, according toLazard’s 2023 LCOE Report. Therefore, market forces serve as a tailwind to
the global adoption of solar energy.
As calculated by the International Renewable Energy Agency (IRENA), tofulfill the 1.5-degree Celsius target of the Paris Agreement, solar PV's
cumulative installations must increase to 5.5 TW or 5,500 GW by 2030 and
20 TW or 20,000 GW by 2050, up from 1 TW or 1,000 GW in 2022. This
indicates an average annual installation requirement of 680 GW of solar
capacity until 2050, whereas the solar installations for 2022 were about
250 GW, as reported by Bloomberg New Energy Finance. With solar energy
currently contributing to merely 3% of the global energy mix, the growthpotential for solar energy is substantial, and we are only at the beginningof this structural growth trajectory.
Moreover, the demand for energy storage is expected to increase
exponentially in tandem with the continued growth of renewable energy,
including solar. The increasing penetration of renewable energy lowers
power costs and decarbonizes the power grid. However, it creates pricevolatility and affects grid stability. Energy storage can mitigate theuncertainties of renewable energy on the grid; as such, energy storage hasentered a phase of exponential market growth. According to Wood
Mackenzie estimates, the cumulative capacity for energy storage could
reach 1.2 TWh or 1,200 GWh by 2030 from close to 100 GWh in 2022.
For Canadian Solar, the significant growth visibility for both solar andenergy storage presents major growth opportunities in both the short andlong term, as the nature of our business and strategy is directly alignedwith providing affordable clean solar energy and integrated end-to-end
energy storage solutions.
The following climate change-related opportunities associated with ourbusiness development have been identified, among others:

Climate-Related
Opportunities

Time
HorizonPotential Impacts

Estimated Financial Implications

Management Method

Growing demand forsolar modules

Short to longterm

Growth of our solar
manufacturing business2023 revenue is expected to grow to US$9.0 billion to
US$9.5 billion from US$7.5 billion in 2022. 100% of ourrevenues are associated with renewable energy

Continue to invest in technology R&D to further
increase efficiency of solar modules and product quality
and reliability

Growing demand forbattery storage
system solutions

Short to longterm

Growth of our battery
storage system solutions
business

Long term revenue growth is expected, as we aim toincrease our global market share to 15% in 3-5 years
from 9% in 2022

Continue to invest in R&D of battery storage systemsolutions

Growing demand forsolar power plants

Short to longterm

Growth of our project
development businessand O&M business

Growing demand forbattery storage
plantsShort to longterm

Green financing tosupport the growthof our solar andbattery storage
development
businesses

Short to longterm

Capture market opportunities and expand solar project
development pipeline

Capture market opportunities and expand battery
storage project development pipeline

Enable the continued
growth of our solar andbattery storage project
development businesses

In 2022, we renewed our EUR100 million note program
to support the development and acquisition of new
solar PV and battery storage projects in Spain andglobally

Maintain good relationship with financial institutions as
we execute on and expand our project development
pipelines

In 2021, we successfully issued EUR30 million green
bond to support the development of our solar andbattery storage projects in the EMEA region
Also in 2021, we received JPY8.1 billion (US$75 million)
through the issuance of Green Project Bonds in Japanto support the construction and operation of the 43
MWp Ibaraki and Hiroshima projects developed by us.
We received the “Green Bond of the Year” award from
Environmental Finance, an online news and analysis
services headquartered in London, for this green
project bond
We expect to receive further support in green
financing as the demand for solar and battery storage
increases to achieve decarbonization goals

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Case Study: Canadian Solar Infrastructure Fund
Canadian Solar captures climate-related opportunities not only in EMEA, but also in Japan. Canadian Solar owns approximately 15%
of CSIF, Japan’s largest publicly listed solar infrastructure fund (TSE: 9284). CSIF invests in renewable energy power generation
facilities in Japan and embraces ESG as a core tenet to enhance shareholder value. Canadian Solar’s subsidiary, Canadian Solar AssetManagement K.K. (“CSAM”), serves as the asset manager of CSIF and became a signatory of the UN PRI (United Nations Principles
for Responsible Investment) in 2019. CSAM is committed to fulfilling its social responsibilities as an asset management company
and integrates ESG factors into its investment and ownership decisions. CSAM was the first asset manager of a listed infrastructure
fund on the Tokyo Stock Exchange to adopt this approach to sustainable investing.

The table below details green finance that has been secured by CSIF:

Amount (JPY billion)

Type of Debt

AgencyRating2017.11.22

15.7

Green Loan

JCR

Green 12020.5.11

N/A

Green Finance Framework(Corporate)

JCR

Green 12021.1.26

3.8

Green Investment Bond

JCR

Green 12021.3.8

17.0

Green Loan
Green Loan

JCR
ShinseiGreen 1
Shinsei Green

CSIF’s Corporate Green Finance Framework is based on ESG investment guidelines such as the Green Bond Principles (2018 Edition)
published by the International Capital Markets Associations and the Green Bond Guidelines (2020 Edition) published by the Ministryof Environment in Japan. CSIF’s Green Finance Framework, as well as its other bonds and loans, have received the highest rating ofGreen 1 from the Japan Credit Rating Agency, Ltd. (JCR).

300 KW Energies des Territoires Commercial Solar Rooftop, France

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Canadian Solar 2022 ESG Report

3 Social Responsibility
As one of the world’s largest solar technology and renewable energy
companies, Canadian Solar is dedicated to powering the world with solar
energy and fostering a cleaner planet for future generations. Our goal is
to "Make a Difference" by nurturing a corporate culture defined by equity,
diversity, and inclusion, and generating a lasting positive impact on bothsocieties at large and the specific communities where we operate. We
regard our culture and people as our most valuable assets, serving as the
key catalyst for our competitive advantage.

MissionVisionLead the energy
revolution and create abrighter future together

Power the world with solar energy
and create a better and cleaner
Earth for future generations

Core Values

SloganCustomer Success,Innovation, Grit, Excellence

Make The Difference!

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Working at Canadian Solar
As of December 31, 2022, our global team consisted of 18,423 individuals, 17,793 full-time employees and630 part-time staff, including trainees. Of these, 17,737 were employed by CSI Solar, while 686 were part of
our Recurrent Energy division, formerly Global Energy. In conjunction with our in-house team, we partnerwith roughly 2,000 part-time contractors globally.

CSI Solar
Manufacturing

89%
3%

General and Administrative

2%

Sales and Marketing

5%

Battery Energy Storage and Power Electronics

1%

Research and Development

Equity, Diversity, and Inclusion
At Canadian Solar, ethical business practices,
responsible sourcing, and treating our employeeswith dignity and fairness are paramount. We
champion equity, diversity, and inclusion throughout
our organization and are committed to cultivating adiverse workforce, which fosters creativity,
innovation, and underpins our long-term success.
We not only adhere to but strive to exceed theemployment laws and regulations in the jurisdictions
where we operate. Aligning with our global
strategies, we implement best practices across our
local operations, from manufacturing to sales andproject development, to ensure local relevance andeffectiveness.
Canadian Solar is an equal employment opportunity
employer (link). We maintain a policy of zerotolerance towards discrimination in any form,

Recurrent Energy
21%

whether based on race, color, ethnicity, gender,
religion, political or other opinions, sexual orientation,age, disability status, or any other distinguishing
characteristics. As part of our commitment totransparency and fairness, we complete and submit
the Equal Employment Opportunity Form, or EEO
form (link) for our operations in the United States.
This provides a comprehensive demographic
breakdown of our U.S. workforce by race and gender.
Canadian Solar is against any form of forced laborwithin our operations or supply chain. We arecommitted to treating all employees and individuals
associated with our businesses fairly, respectfully, andwith the utmost dignity. Our Labor and Human
Rights Policy (link) stipulates these standards,
outlining the rights to which all our employees areentitled to.

O&M
General and Administrative

39%

EPC

13%

Project Deveopment
27%

Total Employees by Region

China

14%
82%

EMEA (Europe, Middle East, and Africa)

3%
1%

Asia Pacific ex. China
Americas

EMEA staff celebrating 2023 International Women's Day

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Promoting Equity, Diversity, and Inclusion in all Human
Capital Management Areas
Diversity and Inclusion
Embracing diversity and inclusion ranks high on our list of priorities. In 2022, women accounted for 32% of
our workforce, with female representation in middle management at 26%. Our employees with disabilities
made up 0.7% of our staff. Additionally, ethnic minority groups represented 45% of our workforce in the
United States.

Total Employees by Region

32%

25%

8%

2022

10%

7%

2021

In our EMEA offices, we organized a "Break the Bias" workshop. During this session, our colleagues
exchanged ideas, shared personal experiences, and suggested ways we could further improve our
performance in the areas of equity, diversity, and inclusion.

1-2%

0.8%

our employees, facilitating their growth and success.
Diversity only thrives with inclusion; building such anenvironment is everyone's responsibility. I urge ourleaders to adopt an inclusive leadership style,crafting a milieu of involvement, respect, andconnection. We can generate business value by
harnessing the richness of ideas, backgrounds, andperspectives."

0.7%

Employees with Disabilities

30%

26%

We regularly host events and workshops aimed atelevating the awareness of our employees andmanagement team on equity, diversity, andinclusion. For example, we celebrate International
Women’s Day to applaud women's achievements,
advocate for gender equality and fundraise forcharities that champion gender equality.
On International Women's Day in 2022, ourChairman and CEO, Dr. Shawn Qu, addressed all
Canadian Solar employees, underscoring thesignificance of acknowledging, connecting with, andincluding women in our work environment. In his
speech, Dr. Qu stated, “Diversity and inclusion arevital elements of our entrepreneurial culture. They
foster a variety of ideas, thoughts, and perspectives,
driving innovation. A diverse and inclusive
environment nurtures a sense of belonging among

40%

36%

Raising Awareness

2022
Senior Management

2027

2021

2027

Overall

Middle Management and Above

Hiring and Promotion
Canadian Solar hires, promotes, and rewards
employees based on their qualifications, experience,
potential for development, and meritocratic
performance. We also consider diversity factors that
help us drive a more competitive and effective
business, aiming to increase the proportion of ourfemale employees, employees with disabilities, andindividuals from underrepresented racial or ethnic
groups. Our goals include increasing female
representation in our global workforce to 40% by2027, up from 32% in 2022, and raising the
proportion of employees with disabilities to 1-2% by
2027, up from 0.7% in 2022.

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Training on Equity, Diversity, and Inclusion
Training plays an instrumental role in our ongoing pursuit of greater equity, diversity, and inclusion in theworkplace. We provided the following programs in 2022 by collaborating with our compliance training
partner, Traliant, and through Canadian Solar University:
Guest lectures from leading Diversity, Equity, and Inclusion (DEI) experts
Workshops on creating a respectful remote workplace
Training on how to be an ally
Seminars on how to prevent microaggressions and bullying in the workplace
Workshops on cultural competence in the workplace
Management training focusing on adopting inclusive leadership behaviors
Courses on creating a positive work environment
For 2023, we will expand our offerings by introducing unconscious bias training specifically tailored for
management roles.

Accountability
Diversity and inclusion are included in our team leaders’ key performance metrics to ensure accountability increating a diverse and inclusive workplace.

Gender Equality
At Canadian Solar, we champion
gender equality, seeking to motivate
and attract women to join our global
team.
We recognize the importance of gender equality, notonly as a human rights issue, but also as a crucial
business consideration. Gender equality canenhance and diversify our talent pool. Women bringvital perspectives to decision-making, thereby
improving execution efficiency and outcomes.
Considering the underrepresentation of women in
the renewable energy sector, we have made gender
equity a priority at Canadian Solar, striving to attract
more talented women.

Women in Leadership Program
In late 2022, we collaborated with Cornell University
to initiate our comprehensive Women in Leadershipprogram. This program offers training designed to
guide women on their leadership journeys andenrich our talent pipeline with exceptional female
leaders. Our inaugural cohort of carefully chosen
female leaders participated in this three-monthcourse featuring 40 hours of instruction from Ivy
League professors and instructors. The programaims to expedite the development of our female
leaders, thereby boosting female representation insenior leadership positions.

Development Group: WISE: Women in Solar Energy
In 2019, Canadian Solar established the Women in
Solar Energy (WISE), an industry association in China
aimed at promoting the participation and careeradvancement of women in the solar industry. WISE
comprises female executives from various companies
within the industry. The association frequently
organizes events to discuss solar technology andindustry trends, with the goal of offering mentorshipand resources to women in the solar industry.
During the most recent WISE forum, held in March
2023, topics related to ESG, and battery storage werediscussed. These discussions enhanced ESG
awareness and facilitated the sharing of cuttingedge industry knowledge among members.

Recurrent Energy Town Hall Meetings
Recurrent Energy conducts online townhalls every
quarter. Town halls are opportunities for senior
management to provide employees with strategic
business initiatives, progress updates towardachieving annual targets, and other goals. Townhalls also offer a public forum for employees to ask

questions directly to senior management, holding
them accountable and allowing management to alignthe company with industry developments andcorporate goals. Furthermore, these meetings foster
employees' sense of belonging, thereby creating an
inclusive environment.

Employee ESG Survey
We conducted a comprehensive employee ESG
survey in April 2023. The results indicated that 80% of
respondents held a positive view of ourenvironmental, social and governance performance,with governance standing out as our primarystrength, receiving a favorable rating of 86%.
Nevertheless, the environmental index recorded thelowest score at 68%. The four areas identified forenhancement include emphasis, awareness, leader,and colleague behavior.
Certain demographics, specifically middle managers,
directors, employees with 3-5 years tenure, female
employees, and those within the Asset Managementand Legal functions conveyed fewer positive
perspectives. The data suggest key opportunities for
improvement lie in advocating for environmental
responsibility, boosting social initiatives, andimproving communication about retirement plans incertain countries.
The company is utilizing the survey results to devise
an effective strategy that addresses and improves
ourESG
performanceandemployeecommunications.
We
continue
prioritizing
environmental responsibility, strengthening oursocial initiatives, and refining communication
regarding our retirement plans in specific regions.

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Talent Strategy, Training, and Development
Our team members are our most valuable assets. They are at the core of oursustainable competitiveness and crucial in achieving our goals and mission.
Consequently, we periodically reassess our talent strategy and track progress toensure alignment with our short, medium, and long-term objectives.

Talent Review and Succession Planning
We regularly assess and recognize the talent skillsets
vital for our business's long-term success,consequently shaping our talent pipeline. We offer
our employees professional training programs todevelop the necessary skillsets and knowledge that
contribute to their personal career growth and thecompany's sustainable development. Concurrently,
we have established a succession planning process
rooted in our business needs, talent availability, andemployee feedback.

In 2022, we collaborated with Development
Dimension International (DDI), a renowned global
leadership and human resources consulting firm.
This partnership aimed to implement a more
systematic approach to evaluate our talent potential
and capabilities for succession planning. This
strategy has been instrumental in identifying andnurturing talents for critical management roles
across our global operations.

Talent Retention Strategy
Share Rewards and Compensation Plans
At Canadian Solar, we offer share-based incentive
plans to employees. In 2006, Canadian Solar Inc.,
adopted a share incentive plan under which we
grant restricted shares, options, and restricted share
units to eligible employees, directors, andconsultants. Additionally, CSI Solar Co., Ltd., amajority-owned subsidiary of Canadian Solar Inc.,
maintains an Employee Stock Ownership Plan (ESOP)

available to eligible directors and employees. We
consider share-based compensation, including
performance-based share awards, to be crucial for
attracting, retaining, and motivating key personnel.
We plan to continue offering share-based
compensation in the future. For further details on
our share-based incentive plans, please refer to ourannual report (link).

Onboarding Buddy and Mentoring Programs
At Canadian Solar, we care about the onboarding
experience of our new team members. To ensure an
efficient, inclusive, and personalized experience, wepair new colleagues with experienced employees who
serve as their buddies, providing support as they
adjust to their new roles. For instance, in the EMEA
region, new colleagues receive a welcome call fromtheir buddies, are invited for coffee or social events,

and are introduced to other team members andmembers from different departments. Additionally,
we offer a mentoring program that pairs lessexperienced or newly joined employees with seasoned
colleagues. This program emphasizes careerdevelopment and diversity advocacy, typicallyspanning three months. After this period, the mentor
or mentee can decide whether to continue thepartnership.

Talent Training and Development Programs
Canadian Solar University
Canadian Solar University (CSU) seeks to expand our
employees' understanding of our operations at ourwholly owned subsidiary, Recurrent Energy. Our
focus is on fostering innovation and enhancing
internal collaboration. CSU is built on three pillars:
Functional/Technical Training, Leadership Academy,
and Individual Development. These elements
support the advancement of employees' expertise
across various disciplines, both within and acrossbusiness functions. CSU provides a comprehensive
suite of learning resources. These encompass all key
business functions, including project development,
Major courses we launched in 2022 include:
Risk Management 201 - Investment Committee
Process & Metrics
O&M 201 Performance Monitoring & Data
Analytics
Procurement 201 - An Introduction to PV
Mounting Systems
Business Development 301 - Examining Key
Variables in Early-Stage Projects
Project Finance 301 - Corporate Finance CaseStudy
PPA 301 - Deep Dive in Italy, Brazil, and the USA
Project Sales 301 - Crimson Case Study

project sales, project finance, procurement, energy
storage,manufacturing,
asset
management,
operations and maintenance, risk management, andEPC management. Each topic is structured into
different
proficiency
levels,rangingfrom
introductory 101 courses to advanced 301 courses.
In 2022, we designed and globally launched thirtynine courses, including ten modules leading tocertification in EPC project management andconstruction management. Through CSU, ouremployees received 88.5 hours of training andawarded us a satisfaction score of 4.6 out of 5.

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Canadian Solar University
At Canadian Solar, we acknowledge that leaders at alllevels require ongoing guidance and training tothrive and inspire their teams. Our Leadership
Academy, a key component of Canadian Solar
University, offers individual and group-based
training opportunities for our leaders. In 2022, we
introduced courses designed for new and first-timeleaders, such as Franklin Covey’s “The 6 Critical
Practices for Leading a Team” and “Leading at the
Speed of Trust.” In addition, we provided"Interviewing Skills for Managers" and "Executive
Communication" courses to over 350 leaders acrossthe company.
In 2022, we initiated a trial run of the Key Talent
Program in the Recurrent Energy regions of Japan,
Asia Pacific, and Latin America, with the objective of
formulating individual development plans for
emerging talent. Participants in this program
undertook the Myers-Briggs Type Indicator
assessment and consultation, as well as acompetency-based 360 assessment through the
reputable DDI 360 platform. The insights derived
from both assessments enabled us to design
comprehensive individual development plans,
facilitating rapid progress toward participants' careergoals. Several members of this Key Talent Program
received promotions within months of completingthe program. We plan to expand this initiative toother regions soon.
In addition, Canadian Solar established a partnershipwith Cornell University to deliver developmental
courses specifically designed for women within ourorganization. This program comprises two tiers Women in Leadership and Women in Executive
Leadership, each offering content tailored to therespective career level of the participant. Moreover,
we invested in the growth of our senior leaders,equipping them with the necessary skills to guidetheir teams through intricate challenges. In 2022,
eight senior leaders and executives underwent
coaching by an executive specializing in the HighPerformance Patterns (HPP) coaching method.
In 2023, we will maintain our commitment to the
Leadership Academy by introducing Essential Skills
for People Leaders (ES4PL). This is a comprehensive
34-week program conceived to facilitate thetransition of new leaders into proficient managers.
The ES4PL program, integrating asynchronous
learning with group coaching, ensures participants'
immediate application of acquired knowledge. We
plan to initiate a new ES4PL cohort every quarter.

To facilitate this, Canadian Solar has partnered with
LinkedIn Learning, granting our employees
unrestricted access to an extensive suite of training
and developmental courses. This broad spectrum ofcontent enables employees to pinpoint resources
specific to their developmental needs or to address
objectives
identified
throughperformance
management.

On-the-Job Training
Additionally, we facilitate regular on-the-job training
sessions for all employees at our CSI Solar division,
covering areas such as Environmental Health and
Safety (EHS), compliance, industry and market
development, professional skills, and trade
knowledge.
Employees at CSI Solar received an average of 42.6
hours of training, equivalent to five sessions, in 2022.

The third pillar of CSU is individual development.
Every employee should strive to enhance their skills,
whether as an individual contributor or an emerging
leader.

We observed a substantial increase in the volume oftraining provided in 2022 compared to previous
years, largely attributable to the significant
expansion of our manufacturing capacities. We
delivered a total of 1,463 courses in 2022, either
online or in-person. These courses were classified
into five categories: general courses, professionalcourses, special skill courses, compulsory courses,
and leadership courses.

On-the-Job Training
42.6

24

22.1

20.4
15.7

4.0

2019

5.6

6.4

5.0

2020

2021

2022

Avg. Hours Per Employee

7.0

2027

Avg. Times Per Employee

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Canadian Solar 2022 ESG Report

ExamplesGeneral Courses

Efficient office skills, project management skills

PV Industry Professional
Courses

Quality tools, new material knowledge, greenhouse gas emission standards

Special Skill Courses andProjects

New Power Camp, school enrollment talent cultivating project, IEC 62941
photovoltaic module manufacturer quality system

Compulsory Courses

Annual compliance training, EHS fire-fighting skills and fire evacuation drill,
quality awareness, information security awarenessLeadership Courses

Leadership for middle and senior managers, women in leadership

Employee Performance Appraisal
We have implemented an online, trackable
performance appraisal system that aligns employee
contributions with our corporate goals and objectives.
At the beginning of each year, employees work with
their managers to establish quarterly and annual
goals, ensuring they align with our yearly operationaltargets. In the year-end performance review process,supervisors give employees a preliminary performance
rating, reflecting their performance and the actual
business results of that year. Employees receive
feedback on their performance, and the performance
rating is only finalized upon employee approval.

Freedom of Association and Collective Bargaining
Canadian Solar strictly abides by the employment
laws and regulations in the jurisdictions where we
operate. Our respect for our employees’ rights
encompasses their ability to form or become
members of labor unions or similar organizations of

their choosing, as well as the right to collective
bargaining to further their interests. Our Labor andHuman Rights Policy (link) explicitly establishes ourcommitment to uphold our employees' rights tofreedom of association and collective bargaining.

Grievance Procedure and Zero Tolerance for Retaliation
In line with our commitment to fostering a safe andinclusive workspace, we have put in placecomprehensive internal processes aimed at shielding
our employees from acts of discrimination and otherforms of misconduct. Our grievance mechanism
outlines the process for lodging a complaint, theinvestigation stages, and our stringent nonretaliation policy. Regular awareness drives about
these support mechanisms are conducted toembolden our employees to confidentially reportany grievances concerning policy violations, bullying,
discrimination, harassment, or other potentiallysensitive issues. Consequently, we are wellpositioned to respond promptly and effectively to
any grievances, helping to mitigate risk, limit theramifications of transgressions, and promote a
healthy, positive work environment.

Work-life-balance
Our employees are our most valuable assets, and weare committed to creating a workplace that fosters ahealthy work-life balance. In 2022, we implemented a
hybrid work policy, which allows our employees towork from home for a portion of their work time
based on their individual needs and regulatory
requirements in each country. This approach, whichreflects a culture of trust, offers our employees theflexibility to choose a work arrangement that best
suits them, potentially increasing employee
satisfaction and work efficiency.

In addition, we offer various types of personal leave
beyond legal requirements to support our employees inbalancing work and family responsibilities. For instance,
in China, we grant an additional three days of annual
leave on top of the statutory annual leave, ten days ofmarriage leave, up to 158 days of maternity leave,
fifteen days of paternity leave for male employees, tendays of annual paternity leave for three years following
the birth of their child. In other regions, we also provide
paternity leave to assist employees in caring for andnurturing their newborns.

Cafayate 100 MWp, Argentina

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Occupational Health and Safety
At Canadian Solar, employee safety is our top priority. For our
manufacturing businesses or CSI Solar, we have implemented theISO45001 occupational health and safety management system (formerly
OHS18001) since 2008.
Our safety policies mandate the establishment of asafety committee and a dedicated safe operations
management team before a factory commences
operations. The safety committee convenes regularly
to review, discuss, and decide on safety-related
measures. Before their work commencement, allemployees undergo environment, health, and safety(EHS) training and are required to pass theassociated tests. We also ensure our employees areequipped with the appropriate personal protective
equipment (PPE). We rigorously report and address
safety incidents, including “near misses,” incompliance with our safety protocols. Any incidents
that result in lost work time must be reported within
one hour of their occurrence. We conduct internal

investigations for all such incidents and implement
robust corrective and preventive measures toprevent future accidents.
Our safety policies and procedures have effectively
enabled us to maintain a low frequency of safetyrelated incidents. In 2022, our recordable injury rate,encompassing any injuries that required medical
treatment, stood at 0.75 cases per million working
hours. To enhance our safety management systemfurther, we are instituting programs such as
management of change, LOTO (lockout-tagout), andmachinery safety. These measures aim to reduce
operational risks and prevent injuries to ouremployees.

Types of Injuries (%)

14%

26%

Caused by Vehicle
9%

5%

2.37
0.94

2017

2018

Collision
Burn

1.28

0.85

2019

2020

0.68

0.75

2021

2022

At Recurrent Energy, our global project development subsidiary, we prioritize theprovision and maintenance of a safe and healthy work environment in collaboration
with our employees and business partners.
This is implemented via an active health and safety
program. We strictly comply with all pertinent
occupational safety laws and regulations in every
jurisdiction where we operate. In all instances, weprioritize the protection of our employees,
contractors, and visitors from occupational illness,injury, and risk, while safeguarding materials, assets,
and the environment against fire, damage, and otherpotential losses. Our commitment is carried out
through an integrated system emphasizing
prevention and continuous improvement.

Recurrent Energy is making significant progress
towards
compliancewith
ISO9001
quality
management standards and ISO45001 occupational
health and safety management system. We anticipate
full compliance with these standards by the end of2023.
Here is a summary of Recurrent Energy's incidents for2022. Our aim is to reduce the total recordable
incident rate (TRIR) in 2023. We remain committed to
improving our health and safety performance acrossall our project development activities.

Recurrent Energy

Incident Data (North America)

Caused by Machinery

Others46%

Recordable Injury Rate (per million working hours)

Overall

1

EPC 2

O&M

Fatalities

0

0

0

LTIR (lost time injury rate)

0

0

0

TRIR (total recordable injury rate)

2.4

2.8

0

1 EPC and O&M activities related to solar and battery storage projects owned by Recurrent Energy
2 EPC services provided by Recurrent Energy to solar and battery storage projects owned by Recurrent Energy and 3rd parties
3 O&M services provided by Recurrent Energy to solar and battery storage projects owned by Recurrent Energy and 3rd parties

3

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Hazardous Materials and Environmental Management
Our Environmental Management System certified
under ISO14001, and our Occupational Health and
Safety Management System certified underISO45001, both integrate chemical and operating
equipment safety management. This integration
ensures that hazards in the workplace aresystematically identified, evaluated, and effectively
controlled within our manufacturing businesses.
Before introducing any hazardous materials or
dangerous chemicals into our facilities, we
implement a formal review and approval process.
This process includes thoroughly examining the
Safety Data Sheet (SDS) associated with eachchemical, along with assessing potential hazards andrisks. Our products, classified as "articles" within the
REACH directive, do not release any chemical
substances under normal or reasonably foreseeableconditions of use.
All employees responsible for handling hazardous
chemicals receive specific training on the associatedrisks and the required safety precautions. We also
provide general training programs to all employees,
including mandatory environmental, health, andsafety (EHS) training for all new hires, and regular
EHS refresh training sessions.
Warning signs are clearly displayed in appropriate
areas, and employees with duties related tohazardous materials have unimpeded access to
information about these substances. We also provide
medical checks for employees working inenvironments where they might be exposed tooccupational hazardous agents.
Our safety procedures in all factories include hazard
identification and assessment, management ofchanges, contractor safety, emergency responsemanagement, and confined space protocols, among
others. When constructing a new factory, we conduct
equipment safety reviews to ensure all deployedequipment is safe, aiming to provide a secure
working environment for our employees.
To maintain control over hazardous materials
entering our properties, we require our key suppliersand contractors to sign a suppliers’ EHS agreement
before commencing deliveries and services.
20 MW Changdu Utility Solar Plant, China

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Connecting Employees with Company Mission
Sustainability lies at the heart of Canadian Solar's mission, and we encourage employees
to engage and share in this vision actively. To achieve this, we have adopted thefollowing approaches to embed our image with our employees' work.

In December 2022, we organized a Sustainability
Game at our EMEA offices. The goal of the game wasto advocate the 17 Sustainability Development Goalsof the United Nations as well as the company
mission, vision, and values among our employees ina playful way through a memory game. The gameitself was created in accordance with sustainable

criteria and plastic-free materials.
In celebration of Earth Day 2023, Recurrent Energy's
EMEA team initiated a sustainable hive adoption
event. As a result, we have successfully adopted 190
beehives in Calascibetta, Sicily, Italy, as part of ourongoing efforts to advocate for biodiversity.

Advocate
Our annual Earth Day celebration and company
founding anniversary serve as platforms tounderscore the importance of sustainability to ouremployees, particularly in the context of combatingclimate change. In conjunction with thesecelebrations, we host educational workshops andorganize team building activities, fostering a cultureof sustainability, and imparting practical ways to live
more eco-friendly lives.
On Earth Day 2022, we organized two interactive

sessions led by Sustainable Shane, who showcased
the remarkable contributions of Canadian Solar
towards environmental preservation. For ourFounder's Day celebrations in 2022, we pivoted
towards a deep reflection on our company values,
culminating in engaging regional discussions andinsights from a global guest speaker from the Barrett
Values Centre. Looking ahead to 2023, we aim to
broaden our advocacy initiatives within local
communities, rendering our educational resourcesand events widely accessible.

Volunteering

Walnut Creek Staff celebrating Earth Day 2023

As of December 2022, we have planted a total of
1,136 trees in the EMEA region, offsetting
approximately 24.9 tons of CO₂. This initiative
includes tree planting at our EMEA offices for
employees celebrating their 5th or 10th work
anniversary. Furthermore, in 2022, our EMEA teaminitiated the "Bike for Environment" challenge. This
team effort entailed logging the kilometers that
employees rode on an exercise bike in our office or
their own bikes. For every kilometer covered,
Canadian Solar planted a tree. We planted 410 trees
because of this challenge and 726 trees to honor our
employees' work anniversaries. All trees were
donated via GROW MY TREE (link).

43

Social Responsibility

In October 2022, our EMEA team based in Milancelebrated Canadian Solar 21st Founder’s Day with aclean-up activity at Park Sempione, one of the most
famous parks in downtown Milan. We partnered withLegambiente, an environmental association in Italy
for this activity. Legambiente provided our teamCanadian Solar 2022 ESG Reportwith working gloves, garbage bags, garbage grabbertools. The team collected many cigarette ends,
plastic bottle caps, glass bottles and even an ironpipe. This was a very engaging team building
opportunity connected to our company mission.

In 2022, our team extended their generosity to orphanages in Munich and South Africa. At our Munich office,employees came together to prepare Christmas gifts for children at a local orphanage, aiming to bring joy anda spark of happiness to their lives. The children expressed wishes for flashlights, towels, and trolleys, whichwere individually packed by our EMEA team members. Similarly, our team extended support to the Ithemba
Labantwana Children’s Centre in Cape Town, South Africa, reaffirming our commitment to make a positive
impact on those in need (link).

Greenhouse Gas Emissions at Our Global Sales Offices

Corporate Giving Program
Canadian Solar is deeply committed to having a
positive impact on the local communities where we
operate. We strongly believe that investing in oursurrounding neighborhoods not only benefits thewell-being of our employees but also enhances ourbusiness success. Therefore, we pledge to devote
our time, talent, and resources to support thediverse communities we inhabit and serve. Annually,
our Human Resources teams collaborate with our
executive team to establish the overall budget andallocation for our Giving Program, which consists ofthree types of grants:

Donations Events

Gifting: All our employees in the U.S. are eligible torequest donations from the Giving Program for aneligible 501(c)(3) nonprofit organization*, subject toapproval.
Matching: Employees who make personal donations
to a qualifying 501(c)(3) organization can request
matching funds up to $250 per year from the Giving
Program budget, subject to approval from ourcompliance team.
100 Club Volunteer Grant: Employees who
volunteer 100 hours within a year at a qualifying
501(c)(3) organization are eligible to request a $1,000
grant from the Giving Program budget.

*Section 501(c)(3) refers to a portion of the U.S. Internal Revenue Code that allows federal tax exemptions for nonprofit organizations, particularly
those classified as public charities, private foundations or private operating foundations. This section is regulated and administered by the U.S.
Department of Treasury through the Internal Revenue Service.

The main sources of carbon emissions at our sales
offices include electricity consumption, businesstravel, and hotel accommodations. Business travel,
as indicated in the pie chart below, is the primarycontributor to these greenhouse gas (GHG)
emissions. These emissions largely fall within the
categories of scope 2 and scope 3 emissions. We
calculated these figures based on actual
expenditures related to electricity consumption,
employee business travel, and hotel stays, including
the use of hotel services.

Emission factors for electricity were primarily derived
from local energy management authorities’ data orfrom the France PPE2 tender. Emission factors forbusiness travel and hotel accommodations wereobtained from the EXIOBASE database v3.3. In 2022,
the total GHG emissions from our offices amounted
to approximately 939 tons of CO₂ equivalent, a risefrom 2021. This increase primarily resulted from theinclusion of our newly opened energy storage offices
and a resurgence in business travel following theabatement of the COVID-19 pandemic.

44

Social Responsibility

Canadian Solar 2022 ESG Report

Making the Difference throughCommunity Commitment

Sales Offices Carbon
Emission Composition (%)

1%

73%

Business Travel

26%

Electricity
Hotel Accomodation

We are consistently striving to reduce or offset
carbon emissions originating from our offices byprioritizing energy efficiency. In 2022, for instance,
our U.S. offices were relocated to a LEED Gold
Certified Building. This structure is equipped with avariety of features designed to enhance energy
efficiency, such as LED lighting and motion sensors
connected to the lighting system. All the appliancesand office equipment installed, including computers,monitors, and printers, are ENERGY STAR®*
certified. Notably, we were able to downsize ouroffice space from 19,325 square feet to 12,500
square feet without reducing our headcount. At our

EMEA offices, energy-saving measures are also inplace, including motion sensor lights and timers thatturn off the coffee machine after hours. Significantly,
our Munich office is now entirely powered by green
electricity.

Our goal is to cultivate long-term relationships that enable us to work together in thecommunities where we operate, making a difference through a positive contribution
to society and the environment.
We collaborate closely with stakeholders in thecommunities where we develop our projects. Ranging
from local grid experts to first responders, we seek
partnerships with local entities, aiming to seamlessly
integrate solar and battery storage projects into
existing energy infrastructures and their surrounding
communities.

Below are examples showcasing our risk mitigation
strategies while integrating solar and battery
technology into pre-existing infrastructure. Additionally,
we detail our commitment to community engagement,
ecological considerations, and energy policy initiatives.

In 2021, we invested in SolarWorX (link). SolarWorX
provides off-grid solar home systems (SHS) for rural
areas in Sub-Saharan Africa which has deployed
3,500 SHS in 2022, translating to providing greenelectricity to approximately 14,000 people ordisplacing approximately 1,400 tons of CO₂
emissions.

1 MW SunEnergy Utility Solar Plant, Spain*ENERGY STAR® is the U.S. government-backed symbol for energy efficiency.

45

Social Responsibility

NORTH AMERICA

Canadian Solar 2022 ESG Report

United States

MexicoIn 2022, the U.S. government passed the important
Inflation Reduction Act, thereby setting off
unprecedented growth in renewable energy projects.
Nevertheless, challenges persist in realizing
successful development, and proactive stakeholder
engagement is one of our key drivers of competitive
advantage. We initiate engagement with local, state,
and federal agencies early in the development cycle
to identify and mitigate potential risks. We respectcommunity values and local ecological concerns andproactively interact with communities to seek
development opportunities that minimize or avoid
environmental and permitting obstacles.

Our projects in Mexico align with social plans designed
to benefit the communities neighboring the Horus,
Tastiota, and El Mayo solar project sites. These plansinclude specific programs that focus on indigenous
communities. Annually, the three indigenous
communities located adjacent to the El Mayo Project
collectively decide on improvement works to enhancecommunity infrastructure and quality of life. These
works are financed through project funds andcontributions from municipal and state sources.

LATAM

BrazilWhenever possible, we undertake social work andprioritize hiring within local communities. For instance,
our Salgueiro project is situated within a community
inhabited by quilombolas, descendants of formerly
enslaved Africans. We constructed a community center
equipped with computers, printers, and soccer fields
and organized social activities such as dance andgardening classes.

Colombia
An agreement was established with the Mokaná
community, located adjacent to our Caracoli project, to
supply and connect solar modules that would power
their local radio station. Additionally, we have secured
a plot of land to construct a community development
center for children. Furthermore, the project will notify
the community of any reusable materials generated
during construction and will prioritize hiring
community members whenever feasible.

EMEA
Italy

Canadian Solar has consistently led the charge in
Italy's energy transition by developing renewableenergy projects that also generate positive local
impact.
In Italy, integrating agro-PV solutions in our projects
enables efficient solar generation using cutting-edge
PV technologies while preserving local agriculturallands and biodiversity. Our agro-PV projects not only
involve the cultivation of various native crops—
specifically chosen based on land type—but also
animal grazing and deploying beehives. Importantly,
dual land usage facilitates the preservation ofagricultural and pastoral jobs through agreementswith local farms. Currently, Canadian Solar has apipeline of 1.1 GW of agro-PV projects in Italy.
Additionally, we minimize the visual impact on thelandscape by incorporating vegetation barriers
composed of Mediterranean scrub or native species.
Our renewable projects contribute to local socioeconomic
developmentby
implementing
compensatory works that align with local community

needs.
These
compensatory
measuresaresustainability projects designed specifically forcommunities residing near our renewable plants.
Thus far, Canadian Solar has funded energy
efficiency projects for public buildings, improved
existing road infrastructure to reduce noise and air
pollution, and constructed water purification andsewage treatment plants.

Spain
Canadian Solar is deeply involved with thecommunities in which we operate from the
beginning of the project development process. A
core objective is to contribute to their sustainable
development and gain long-term support from local
communities.
For instance, we have established agreements withlocal governments and associations to strength thelocal economy, foster employment through local
training, identify community needs and implement
improvement measures, and support local culturaland recreational activities.

46

Social Responsibility

Canadian Solar 2022 ESG Report

United Kingdom
Canadian Solar is steadfast in its commitment tosupport the U.K.'s goal of achieving carbon neutrality
by 2050. Our strategy lies in deploying solar andstorage solutions that adhere to the highest
engineering standards. We conduct comprehensive
evaluations of the potential impacts of our projects on
stakeholders and the environment, and use thesefindings to guide the design, construction, andoperation of our projects. With community
engagement, meticulous design, and careful planningat the forefront, we strive to minimize any negative
impacts and optimize benefits throughout the life ofeach project. We also assign a portion of ourdevelopment costs towards community benefit funds
specific to each project, which can in turn be used to
improve the livelihoods of local communities once theproject is operational.
In the case of the Dueñas project, Canadian Solar
participated in Arraigo—a national program initiatedby local governments. This program seeks torevitalize rural areas experiencing depopulation due
to urban migration. It provides employment
opportunities and accommodation to individuals
willing to relocate to the town. In Zamora, Canadian
Solar has designated land to farmers, supportingthem in seeding new crops, such as native plants andflowers.
We present an economic and industrial plan tailoredto the region in projects that are part of a public grid
capacity auction. These plans aim to stimulate
economic and social development in the region, drive
industrial growth, and generate employment andwealth. All of this is achieved while respecting theenvironment and harnessing locally sourced energy.

The U.K.'s energy transition involves complex
upgrades to the national energy transmission systemand operating procedures. These upgrades have
paved the way for viable grid connections for our
projects. Although these connections’ contractual
arrangements and technical solutions are constantly
evolving, integrating co-located solar and batteryenergy storage projects is becoming increasingly
commonplace. This trend reduces risks and maximizes
benefits for both the grid system and the energy
market. Both the renewable energy industry and grid
operators prefer the combination of these twotechnologies. Canadian Solar will continue tocollaborate closely with technical and grid experts toensure that our grid connections are fit for theirintended purpose and are delivered promptly and at
an appropriate cost. Our goal is to continue supporting
the grid and help reduce energy bills for residents.

300MW solar plus 561MWh storage, Slate solar and battery storage plant, U.S.

47

Social Responsibility

APAC
Japan

The Japanese government has announced its
ambitious goal of achieving carbon neutrality by 2050,
which requires more sustainable solutions for thecountry's power grid. We anticipate regulatorychanges designed to accelerate the installation ofrenewable energy to meet this target. Wind and solar
power are variable resources with intermittent output;
hence, transmission system operators must skillfullybalance the demand and supply of power within theirgrid system to ensure resilience. Our solar solutions
and battery storage combination perfectly align withthis market requirement.
At the project level, we prioritize consistentconsultation with local communities and government
officials throughout all phases of our projects—
development, construction, and operation. Our project
development adheres to strict design protocols, which
include implementing comprehensive drainage
systems and stormwater prevention measures toprotect water in and near the project site fromcontamination. The mountainous terrain of Japan
presents unique challenges, but we have successfully
navigated these complexities for over a decade,developing valuable expertise.

Canadian Solar 2022 ESG Report

South Korea
Canadian Solar Korea is actively participating in thegreen energy transition as part of the country’s
Renewable Energy 3020 Plan and UN Nationally
Determined Contributions (NDC) goals. We are not
only developing traditional solar projects but also codeveloping them with major RE100 partnercompanies. We foresee a future where ourcollaboration with these companies intensifies, as we
aim to transform customer sites into clean solar
energy projects. By working hand in hand with ourpartners, we can secure more projects fordevelopment,
while
our
partners
achieve
decarbonization goals. This symbiotic relationship willcontribute significantly to achieving the country's
renewable energy targets for 2030.

Australia
Given Australia's swift progress towards renewableenergy and electrification targets, our primary focus
is increasingly on community and stakeholder
engagement. We can address local concerns
throughout the development process by maintaining
open communication with local communities.
Our development process also involves interactions
with rule-making bodies such as the Australian Energy
Market Commission. We also remain vigilant for stateand federal governments’ proposed energy policychanges. We aim to advocate for a cost-effective

transition to a lower emissions electricity network,with an increasing focus on solar and hybrid
projects. These projects incorporate energy storageand innovative technical features not previously
present in the Australian network.
We carefully choose project sites to minimize
potential impacts on native flora, fauna, farmland,
and local wildlife. If total avoidance is not possible,
we ensure no net environmental loss by creating orpurchasing biodiversity offsets.

146 MW Gunnedah Utility Solar Plant, Australia48

Social Responsibility

Canadian Solar 2022 ESG Report

Non-Governmental Organizations and Memberships
Country

Australia

Organizations

Chile

Japan Climate Leaders’ Partnership (JCLP)

Clean Energy Investor Group

Japan Electrical Manufacturers' Association (JEMA)

Smart Energy Council

SEMI Standards

MexicoMiddle East andNorthern Africa
Netherlands

The Canadian Chamber of Commerce in Mexico
Middle East Solar Industry Association (MESIA)
Holland Solar
Peruvian Association of Renewable Energies (SPR)

East Energy Storage Association (EESA)

Portugal

The Portuguese Renewable Energy Association

Society of Entrepreneurs & Ecology (SEE)

Puerto Rico

Solar and Energy Storage Association (SESA)

Women in Solar Energy (WISE)

South Africa

South African Photovoltaic Industry Association (SAPVIA)

The Association of Renewable Energies Colombia (SER Colombia)

Costa Rica

The Costa Rican Solar Energy Association
ENERPLAN

Spanish Photovoltaic Union
Spain

The Renewable Energies Syndicate
Future Electricity*

Association of Renewable Energy (PPA)**

American Clean PowerThe Association of the Italian Solar PV Community

Japan Association of Asset Management (JAAM)

Spanish Photovoltaic Union (UNEF)

Association of Storage (AEPIBAL)

Kentucky Solar Industries Association (KYSEIA)

Asia Pacific Real Assets Association Limited (APREA)Japan

The Mexican Solar Energy Association

Peru

Jiangsu Energy Storage Association (JSESA)

Colombia

Italy

Principles for Responsible Investment (PRI) Signatory

Investment Trusts Association, Japan (JITA)The Canadian Chamber of Commerce in Chile
The Chilean Association of Renewable Energies and Storage

Japan Photovoltaic Energy Association (JPEA)

Renewable Energy Association for Sustainable Power Supply (REASP)

Brazilian Association of Distributed Generation

China Photovoltaic Industry Association (CPIA)

FranceJapan

Brazilian Solar Photovoltaic Energy Association (ABSOLAR)

China Chamber of Commerce for Import and Export of Machinery and Electronic
Products (CCCME)

China

Organizations

Clean Energy Council

The Australian Industry GroupBrazilCountry

USA

Japan Builders Network (JBN)

Mid-Atlantic Renewable Energy Coalition (MAREC)
Solar Energy Industries Association (SEIA)
Southern Renewable Energy Association (SREA)

Japan Climate Initiative (JCI)

Texas Solar Power Association*Newly joined in 2023

49

Responsible Supply Chain

Canadian Solar 2022 ESG Report

4 Responsible Supply Chain
Canadian Solar is committed to responsible procurement of materials inall parts of our business, from manufacturing to project development.
CSI Solar, our majority-owned subsidiary, is responsible for manufacturing solar
modules and battery energy storage products. CSI Solar works with third-party
suppliers to ensure a responsible, reliable, and sustainable supply of raw
materials and components. These include solar silicon, ingots, wafers, cells, PV
glass, aluminum, silver metallization paste, back sheets, and ethylene vinyl
acetate encapsulants (EVA) for solar modules, as well as lithium iron phosphatebattery cells for our battery energy storage products. CSI Solar is committed to
expanding our in-house manufacturing capabilities for ingots, wafers, cells,
modules, and battery storage products. This expansion is integral to increasing
the control over our supply chain and our costs, ensuring product quality, andsolidifying our industry-leading position in the solar and battery storage sectors.
Recurrent Energy, formerly Global Energy and a wholly owned subsidiary ofCanadian Solar, develops utility-scale solar and battery energy storage projects
worldwide. Capitalizing on our scale of operations, Recurrent Energy applies
centralized procurement strategies to secure a stable, adequate, and costeffective supply of essential equipment. This includes solar modules, inverters,
trackers, mounting hardware, grid interconnection and power stability
equipment, and other crucial components for our global development projects.
These procurement strategies support a robust supply chain, optimize project
performance, and enhance our competitiveness.

11 MW Utility Solar Plant, France50Responsible Supply Chain

Canadian Solar 2022 ESG Report

ESG Integration in Supply Chain
Management Strategy
Our procurement management strategy utilizes acentralized approach, overseen at the group leveland executed by individual divisions. Canadian Solar
actively incorporates ESG considerations into our
supply chain management. To ensure adherence toour high quality, cost, and ESG standards, we

implement comprehensive supply chain-related
policies and conduct rigorous supplier screenings. In
addition, our supplier auditing program further aims
to cultivate a sustainable, efficient, and robust supply
chain that not only meets our company’s development
needs but also serves our stakeholders’ interests.

Anti-Modern Slavery Initiatives
Canadian Solar does not tolerate forced labor or any
form of modern slavery and is committed to ensuringthat modern slavery does not take place anywhere in
our business, including our supply chain. To achieve

this goal, we have established anti-forced labormeasures, including policy development, training,
execution, and compliance, to prevent modern slavery
in our operations and supply chain.

Policy Deveopment, Communication, Training, and Compliance
Canadian Solar has formed teams dedicated to developing anti-modern slavery policies and enforcing thesepolicies and processes.

At the Company level:
Internal Audit, led by the Global Director ofInternal Audit
Global Compliance, led by the Chief Compliance
Officer
Legal Department, led by the Group GeneralCounsel and Legal Senior Director
Human Resources, led by the Group Head of HR

Anti-Modern Slavery Policy (link)
Labor and Human Rights Policy (link)
Supplier Code of Conduct (link)
Code of Business Conduct and Ethics (link)
Environmental, Health and Safety Policy (link)
Conflict Minerals Policy (link)

Anti-Modern Slavery Task Force:
In October 2021, Canadian Solar established the AntiModern Slavery Task Force to fortify our group-wide
initiatives against modern slavery, including forcedlabor. This task force is responsible for developing
and disseminating anti-modern slavery policies andprocedures. It also oversees the implementation oftraining programs and conducts due diligence toensure the efficacy of our anti-slavery efforts. The
task force is comprised of management personnel
from several key areas: compliance, HR, legal,
procurement, customer service, and safety, quality,and environment.

Anti-Modern Slavery Efforts in Our Own Operations:
All our global manufacturing entities are required tosign “Statement of Anti-Modern Slavery Risk
Management” on an annual basis. As part of thisprocess, our HR directors or managers are required toconfirm that their respective manufacturing entities
comply with all applicable laws and regulations andcompany policies related to forced labor, and theymust explicitly affirm that their respective factories
are not involved in any activities associated withforced labor. The statement was developed based on
the key internationally recognized principles andguidance in this respect, including the Ten Principlesof the UN Global Compact (UNGC) (link) and theInternational Labor Office Indicators of Forced Labor
from which UNGC Principles are in part derived.
Furthermore, we administer mandatory training on
anti-modern slavery, both as part of our employee
onboarding process and in annual training sessions.
These programs aim to heighten our employees'
awareness of anti-modern slavery initiatives, with aparticular emphasis on combating forced labor.

Modern Slavery Risk Assessment andContractual Assurance from Suppliers:
We extend our anti-modern slavery initiatives toencompass our supply chain. Prior to engaging withany new manufacturing supplier, our central
procurement division conducts a modern slavery risk
assessment. We also require our suppliers to provide

contractual assurances, verifying that they are not
involved in any form of modern slavery, which
requires them to investigate their supply chain toensure their suppliers do not engage in modern
slavery.

51

Responsible Supply Chain

Canadian Solar 2022 ESG Report

Supplier Code of Conduct
We require our suppliers to adhere to Canadian
Solar’s Supplier Code of Conduct (link, the “Code”)
to maintain a responsible supply chain. This Codetranscends the basic requirement of prohibiting
modern slavery, extending to broader issues such as
human rights, environmental protection, health,safety, and business ethics. Our Code, primarily
derived from the Responsible Business Alliance (RBA)
Code of Conduct (link), serves as an integral part ofour due diligence process for assessing new
suppliers, who are required to adhere to it.
Furthermore, we require our suppliers to ensure that
their own suppliers to operate in compliance with theCode. In this way, we ensure that not only our direct
suppliers but also our indirect suppliers - that is, oursuppliers' suppliers - uphold the obligations set forthin the Code.

Supplier ESG Audits
To ensure our suppliers align with our ESG standards
and effectively mitigate ESG risks within our supply
chain, we actively oversee our suppliers through an
ESG auditing program. This program incorporates
both onsite and desk audits of our suppliers. Our
supplier audits examine a range of areas, including
quality control, human rights, environment, health,safety, business ethics, and other sustainability
facets, all in accordance with our Code. Noncompliance or failure to meet Canadian Solar’s
standards will result in the termination of thebusiness relationship, particularly if issued warnings
are not adequately addressed. To support our

Critical Suppliers

Ⅰ

Ⅱ

Non-Critical Suppliers

Ⅲ

Group
Higher riskGroup
Medium riskGroup
Lowest risk

50% on-site audits
and 50% desk audits

30% on-site audits
and 70% desk audits

100% desk audits

suppliers, we provide training on compliance with theCode and consultations on enhancing their practices
in line with ESG priorities.

On-site and desktop ESG audits are conducted throughsupplier questionnaires supported by evidentiary
documentation. Canadian Solar reviews the responses
and associated documents, on-site or remotely.

We map our supplier base annually to identify criticalsuppliers, factoring in purchase expenditures andpotential ESG risks associated with a supplier’s
industry sector, size, and type of work. Based onthese criteria, we classify our critical suppliers into
three groups, considering both our purchase spend
and the supplier's ESG risks. We conduct onsite ordesk audits for all our critical suppliers and a subset(5-10%) of our non-critical suppliers each year.

The audits assess suppliers based on an array ofcriteria divided into "veto" and "scored" categories. The
veto criteria are evaluated on a binary "yes or no"basis, wherein any negative response automaticallydisqualifies a supplier from conducting business with
Canadian Solar. For instance, the potential presence offorced or child labor identified through our audit
would immediately deem the supplier ineligible topartner with Canadian Solar.

5% - 10% on-site
audits

The scored criteria necessitate that suppliers achievea minimum score of 60 to qualify for collaboration
with us. We issue warnings to those who fall short ofthis minimum requirement and provide consultations
to help address the identified issues. The business
relationship will be terminated with any suppliers who
fail to meet our standards within a stipulated
timeframe, ranging from 1 to 6 months following theconsultation.
In 2022, we conducted 122 supplier ESG audits,
including 17 on-site audits. After consultations andimplementing corrective action plans (CAP), all
suppliers passed the final ESG audits.

52

Responsible Supply Chain

Canadian Solar 2022 ESG Report

Conflict Minerals
Conflict minerals refer to certain mineral resources
sourced that are produced in the Democratic Republicof the Congo and its neighboring countries. According
to the U.S. Department of State, serious human rights
abuses have been inflicted by local armed forces thatmine and trade these minerals to finance their armed
conflicts. To address this problem, the U.S. Securities
and Exchange Commission (SEC) adopted a mandate
by the Dodd-Frank Wall Street Reform and Consumer
Protection Act (Section 1502), requiring companies
listed on U.S. stock markets to disclose information
about the usage of columbite-tantalite (coltan),cassiterite, gold, wolframite, and their derivatives,
which are limited to tantalum, tin, and tungsten.
We are committed to keeping our supply chain free ofthese conflict minerals, as explained in our Conflict
Minerals Policy (link). This is one of the key criteria for
selecting new suppliers. All of our suppliers are
required to sign the Declaration of Conflict-Free
Minerals before contracting with us, especially
suppliers of tin-containing products, as after reviewing
all the materials used during the production of our

products, we determined that tin was the only conflictmineral necessary for the functionality or productionof the products that we manufacture or contract tomanufacture from January 1, 2022, to December 31,
2022. We require our suppliers to describe the sourceof the tin used in their products and provide a
confirmation statement to ensure that the tin used is
not sourced from the Democratic Republic of theCongo or an adjoining country. We do not purchaseraw ore or unrefined conflict minerals, and we makeno purchases in the Democratic Republic of theCongo or adjoining countries.
After taking the aforementioned measures, we haveno reason to believe that the tin we use may haveoriginated in the Democratic Republic of the Congo oran adjoining country. As such, and as we procure thetin that we use directly from suppliers in China, weare confident that our production is free of conflictminerals. We file a Specialized Disclosure Report, orForm SD, with the U.S. SEC annually regarding conflictminerals. A copy of our filed Form SD can be accessedon SEC or our website (link).

53

Governance

Canadian Solar 2022 ESG Report

5 Governance
Canadian Solar’s board of directors (“Board”) is responsible formanaging or supervising the management of the business and affairsof the Company.
12

Our Board comprises eight directors, of which five are independent non-executive
directors. There are seven male and one female director, bringing a diversity ofskills and industry knowledge. Together, this collective expertise is critical insupervising, and overseeing management performance, and thus ensures ourbusiness' success and creates long-term value for our stakeholders.
Each director is required to stand for election at Canadian Solar's Annual General
Meeting (AGM). Our Corporate Governance Guidelines (link), serve as the guiding
framework for the Board to exercise its responsibilities, ultimately serving theinterests of the Company and our shareholders.

12 Karl E. Olsoni served as an independent director on the Company’s Board between June 2020 to June 2023.
Mr. Olsoni did not stand for re-election at the Company’s 2023 Annual General Meeting that was held on June 28,
2023.

54
300MW solar plus 561MWh storage, Slate solar and battery storage plant, U.S.

Governance

Canadian Solar 2022 ESG Report

Board Committees
To effectively fulfill its responsibilities, our Board has established five specialized committees. The Audit Committee, Compensation Committee, and Nominating and Corporate Governance Committee are chaired
and staffed exclusively by independent board members. These committees convene periodically with the Company's senior management team and an external auditor, ensuring a thorough review of the Company's
business performance and risk management practices.

Committee Name

Responsibilities

Sustainability Committee

The Sustainability Committee's responsibilities encompass reviewing sustainability risks and opportunities, inclusive of climate-related factors, as they pertain to
our strategy and business development. Furthermore, the committee monitors progress, offers advice, and assists the Board with strategic measures geared
toward the Company's long-term sustainability. It also oversees the implementation and progress of ESG plans. The Sustainability Committee convenes at least
biannually to scrutinize ESG matters.

Audit Committee

Compensation Committee

The committee supervises the Company's accounting and financial reporting procedures, as well as the auditing of the Company's financial statements.

The committee conducts reviews and evaluations of the Company's compensation plans, policies, and programs, making revisions as necessary.

Nominating and Corporate GovernanceCommittee

The committee identifies suitable candidates for the Board, selects nominees for director elections at the subsequent Annual Meeting of Shareholders, andidentifies candidates to fill any Board vacancies. Additionally, it develops and proposes a set of corporate governance guidelines and principles for the Board's
consideration, which are applicable to the Company. The committee oversees the evaluation of both the Board and Company management, while also
monitoring compliance with the Company’s Code of Business Conduct and Ethics.

Technology Committee

The Committee reviews, provides guidance, and offers recommendations to both the Company's management and the Board on matters pertaining to theCompany's technology strategy, initiatives, and investments, all in support of the Company's overarching strategy and performance.

55

Governance

Canadian Solar 2022 ESG Report

Summary of Board Members and Duties
Age

Board
TenureDr. Shawn (Xiaohua) Qu

59

17

Leslie Li Hsien Chang(Lead Independent Director)

683

Dr. Harry E. Ruda*

64

12

Andrew (Luen Cheung) Wong

65

9

Lap Tat Arthur Wong*

63

4

Lauren C. Templeton

47

3

Yan Zhuang

593

Dr. Huifeng Chang

57

3

Average

60

7

Audit
Committee

Compensation
Committee

Nominating &Governance Committee

Technology
Committee

Sustainability
Committee

MemberMemberMemberMember

Chair

Chair

MemberIndependent/NonIndependentNon-independent

MemberChair

Independent

Independent

MemberIndependent

MemberIndependent

Chair

IndependentNon-independent

MemberNon-independent*Mr. Lap Tat Arthur Wong qualifies as an “audit committee financial expert” as required by the SEC. Dr. Ruda is “financially literate” as required by the NASDAQ rules.
** Karl E. Olsoni did not stand for re-election at the Company’s 2023 Annual General Meeting that was held on June 28, 2023. Mr. Olsoni served as an independent director on the Company’s board between June 2020 to June 2023 and was the chair of the Sustainability Committee. With Mr.
Olsoni’s departure, the chair of the Sustainability Committee will be reelected in the board meeting to be held in August 2023.

56

Governance

Canadian Solar 2022 ESG Report

Diversity of the Board of Directors
Canadian Solar’s Corporate Governance Guidelines(link) and Nominating and Corporate GovernanceCommittee Charter (link) clearly articulate ourcommitment to board diversity. We value diversity interms of gender, age, nationality, culture, professional
background, and industry experience, as we believe it
fosters varied perspectives that can enhance theBoard's effectiveness in overseeing the Company.
During the nomination process, the Board considers
diversity and evaluates each candidate within the

Board Expertise and Training

context of the entire Board's composition.
We continuously make efforts to improve the diversityof our board of directors and strive to further improvediversity at the board level and meet the Nasdaq New
Rule 5605(f) for Diverse Board Representation in thespecified time frame, including based on gender,
nationality, ethnicity, age, and expertise. The following
is our Board Diversity Matrix, based on self-identified
attributes:

CanadaForeign Private Issuer

Yes

Disclosure Prohibited Under Home Country Law

No

Total Number of Directors

9During 2022, our board of directors convened eight
Board meetings, twelve Nominating and Corporate
Governance Committee meetings, eleven Audit
Committee meetings, five Compensation Committee
meetings, two Sustainability Committee meetings, andtwo Technology Committee meetings. Additionally,

FemaleMale

NonBinary

Did Not Disclose
Gender

1

7

0

1

Ⅰ

Part : Gender Identity
Directors

Part

Ⅱ: Demographic Background

Underrepresented Individual in Home Country
Jurisdiction

7

LGBTQ+

0

Do Not Disclosure Demographic Background2

To ensure that our Board has the right skill sets andknowledge to act in the best interests of our
stakeholders, we conduct comprehensive training
programs. These cover a broad spectrum of areas
such as securities laws in the U.S., where theCompany is listed, and Canada, where the Company
is legally domiciled. Additional training includes
directors' duties, solar and battery storage
technologies, and instruction on piercing thecorporate veil.

Board Meeting Attendance

Board Diversity Matrix (As of February 28, 2023)
Country of Principal Executive Offices

Our Board boasts diverse professional backgrounds
and industry experiences, collectively bolstering its
capacity to oversee the company's overall performance.
Our board members are proficient in many areas,
including solar technology, strategy, global operations,
corporate finance, auditing, accounting, corporate
reporting, capital markets, investing, mergers andacquisitions,riskmanagement,
marketingmanagement, and corporate branding. Please refer toour annual report on Form 20-F for more details.

they passed 32 resolutions through unanimous
written consent. Both Board and committee
meetings achieved a perfect attendance rate of
100% in 2022, a testament to our board members'
dedication and commitment to fulfilling their roles
and responsibilities.

Mandate from the Board for Third Party
Audit of our Operations and Supply Chain
In May 2022, our Board passed a resolution mandatinga third-party assessment, at a reasonable cost, on theextent to which Canadian Solar’s policies andprocedures effectively protect against forced labor in
its operations, supply chains, and business
relationships. The assessment would draw uponinternational standards such as the UN Guiding
Principles on Business and Human Rights, ILO
Declaration on Fundamental Principles and Rights at
Work, and ILO Forced Labor Convention, 1930 (No. 29).
In response, the Company engaged RBA(Responsible Business Alliance) to conduct a VAP audit
or Validated Assessment Program at our module
manufacturing facility in Thailand earlier in 2023. The
VAP audit is an extensive on-site review carried out by
an RBA-accredited auditing firm, verifying acompany’s compliance with the RBA Code of Conduct(link) through document reviews, facility tours, andemployee interviews. This on-site audit covers labor
practice (including no force labor), health and safety,
environment, ethics, and management systems. The
RBA audit is an industry gold standard in
manufacturing facility on-site evaluations.

57

Governance

Canadian Solar 2022 ESG Report

Canadian Solar’s module factory in Thailand wasrecognized by RBA and earned a Silver-level recognition
for the VAP audit, fully in compliance with “Freely
Chosen Employment” rules, in other words, nopresence of forced labor. Canadian Solar plans to
conduct further third-party audits of our operations andsupply chain in 2023.

Executive Management
Our Chief Sustainability Officer (CSO), Ms. Hanbing Zhang,is responsible for shaping and executing oursustainability strategy. She spearheads an ESG working
group comprised of members from diverse facets of theCompany, such as strategy, R&D, certifications, project
development, EHS, HR, government policy, investor
relations, and global marketing teams. The ESG working
group receives guidance from external advisors on
implementing ESG strategy and staying abreast with thelatest standards for disclosing and reporting GHG
emissions. The ESG team collaborates closely with theCompany’s management team to intertwine ESG
strategies within the strategic decision-making process of
the Company, including incorporating sustainability
targets, like environmental metrics, into operational team
KPIs. Our CSO communicates with the Board’s
Sustainability Committee, providing updates on the
progress and initiatives tied to our sustainability targets.

Intersolar 2023 at Munich, Germany

58

Governance

Canadian Solar 2022 ESG Report

Executive Management Team
Title

Dr. Shawn (Xiaohua) Qu

Chairman and CEO

Yan Zhuang

President, CSI Solar Co., Ltd.

Work Experience
Founded Canadian Solar in 2001 with NASDAQ IPO in 2006
Director and VP at Photowatt International S.A.
Research scientist at Ontario Hydro (Ontario Power Generation)

Head of Asia of Hands-on Mobile, Inc.
Asia Pacific regional director of marketing, planning, and consumer insight at Motorola Inc.
Co-Head of Sales & Trading at CICC US in New YorkCEO of CSOP Asset Management in Hong Kong
Vice President of Citigroup Equity Proprietary Investment in New YorkDr. Huifeng Chang

Senior VP and Chief Financial Officer

Ismael Guerrero Arias

Corporate VP and President of Recurrent Energy

President, Head of Origination, and COO at TerraForm Global
Vice President of Global Projects at Canadian Solar
Director of Operations for Asia at the Global Sustainable Fund

Jianyi Zhang*Senior VP, Chief Legal Officer, Chief Compliance
Officer and Corporate Secretary

Senior advisor to several Chinese law firms
Senior assistant general counsel at Walmart Stores, Inc.
Managing Partner at Troutman Sanders LLP (Hong Kong office)Guangchun Zhang

Senior VP, CSI Solar Co., Ltd.

Hanbing Zhang

Corporate VP and Chief Sustainability Officer, CSI
Solar Co., Ltd.

Vice President for R&D and Industrialization of Manufacturing Technology at Suntech Power Holdings
Centre for Photovoltaic Engineering at the University of New South Wales and Pacific Solar Pty. Limited

Global Head of Marketing at Canadian Solar
Founder and President of Women in Solar Energy (WISE)*Mr. Jianyi Zhang retired on July 14, 2023 after working at Canadian Solar for 7 years. Mr. Zhang has been succeeded in his roles by Mr. Kah Locke Tham as Corporate Secretary, and Mr. Jeffrey Kalikow, as Interim Compliance Officer
until a successor is appointed. Mr. Tham is currently also the Company’s Global Corporate Controller, and Mr. Kalikow is the Company’s wholly owned subsidiary Recurrent Energy’s General Counsel. The Company has initiated an
executive search process to evaluate candidates for the Chief Legal Officer's role.

59Governance

Canadian Solar 2022 ESG Report

Ethical Business Conduct
Canadian Solar is committed to upholding the highest standards of business ethics. Our Code of Business Conduct and Ethics is applicable to all directors, officers andemployees of Canadian Solar and its subsidiary entities.
Presented below is a synopsis of our principal governance documents and guidelines:

PolicyCode of Business Conduct
and Ethics (link)

Whistleblower Policy (link)

Insider Trading Policy(link)
Related-Party
Transactions (link)
Anti-Corruption Policies

Area of Focus
Environment, health, and safety
Harassment and discrimination
Employment practices, including anti-discrimination, freedom of
association, privacy, and collective bargaining
Conflict of interests
Confidential information
Competition and fair trading
Gifts and entertainment expenses
Provides a 24/7 reporting channel where internal and external
stakeholders can report their concerns on financial reporting anddisclosure, fraudulent activity, breaches of compliance policies, etc. to
the Board
Protection from retaliation for whistleblowers
Anonymous reporting and confidentiality
Procedure for preventing insider trading
Policy and procedures on reporting, approval, and disclosure of relatedparty transactions
Prohibition against giving bribes (link)
Prohibition against accepting bribes (link)

PolicyArea of Focus

Anti-Modern Slavery (link)

Measures taken to ensure modern slavery does not occur anywhere in
Canadian Solar’s business, including through its supply chain

Labor and Human Rights
Policy (link)

Labor and human rights standards to which Canadian Solar’s employees
are entitledEqual Employment
Opportunity Policy (link)

Canadian Solar’s commitment to providing an equal opportunity anddiscrimination-free workplace

Diversity Policy (link)

Emphasize our commitment to diversity at all levels, including its senior
management and board of directors

EHS Policy (link)

Canadian Solar’s guiding principles and objectives for environmental
preservation and providing a healthy and safe workplace for employees

Supplier Code of Conduct(link)

Canadian Solar’s standards on human rights, environmental protection,
health, safety, and business ethics for our suppliers and their suppliers

Conflict Minerals Policy(link)

Measures taken to ensure Canadian Solar’s supply chain remains free ofconflict minerals illegally produced in the Democratic Republic of theCongo and its neighbors

60

Governance

Canadian Solar 2022 ESG Report

Business Ethics Awareness and Compliance Training
At Canadian Solar, we ensure that all our employees
are thoroughly informed about, and trained on, ourcompliance policies, which are publicly available on
our website (link). We conduct annual training
sessions for existing employees and quarterly
sessions for new employees. These sessions may
encompass key definitions, responsibilities ofCanadian Solar employees, supplier expectations,among other topics. As a part of our comprehensive
training process, we may also incorporate
assessments to gauge the successful completion ofeach training by the employees. Outlined below are
instances of business ethics awareness andcompliance training sessions provided to theemployees at Canadian Solar:

Scope

Frequency

Business ethics training, including
Foreign Corrupt Practices Act (FCPA)All employees

Annual; at least quarterly for
new employees

Anti-modern slavery training

All employees

All employees

Cybersecurity is of utmost importance at Canadian Solar to safeguard the people, data, and other assets of
the Company. Adopting a proactive and risk-based approach, we focus on technology investments andenhancements, personnel development, and process improvements. Our cybersecurity model is aligned withindustry standards and frameworks, encompassing ISO27001, NIST 800-53, and ITIL (Information Technology
Infrastructure Library). We are working to receive the ISO27001 certification by the end of 2024.

STRATEGIC FOCUS:PEOPLE – PROCESS – TECHNOLOGY =Training/Result Review

Data protection

Cyber Security

Policies: Information Technology Security Strategy
Policy,Information
Technology
Security
Management Procedure, Information Technology
Security Incidents Management Policy, Employee
Handbook.

Process

Annual; at least quarterly for
new employees
Annual; at least quarterly for
new employees

ComplianceDeclaration
andQuestionnaire, declaring conflict ofinterestandrelatedpartytransactions, if any, and theacknowledgement and adherence to
Canadian
Solar'spolicies
andprocedures

All employees from Sales,
Business Development andProcurement
departments,and employees at managerial
level or higher from otherdepartments

AnnualCompliance test of complianceawareness and Canadian Solar’s
policies and procedures

All employees

AnnualTechnology

The group provides an update on the company’s
cyber security status to Canadian Solar's board
annually.

PeopleOur Corporate IT Group oversees all aspects of cybersecurity,
includingthedevelopment
andimplementation of information security strategy andpolicies, incident response procedures, breach
notification policies and associated software policies,
and the provision of information security measures
training to employees.
In addition to complying with laws and regulations
where we operate, the group is also responsible forthe continuous improvement of our cyber security
management system covering all our subsidiaries.

Training: We deliver cybersecurity training to key IT
staff, which includes sessions on "Secure Service
Edge"
technology.
Additionally,weoffercybersecurity awareness training to our broader
employee base, incorporating exercises such as
email phishing simulations.
Performance
evaluation:
We
gauge
our
cybersecurity performance using various KPIs andperformance metrics incorporated into routine
reporting.
Cybersecurity
considerationsareintegrated into the KPIs of our IT team.
All Canadian Solar employees are required to comply
with our information security policies. Noncompliance will result in disciplinary and potential
legal action, including termination of employment.

61About this Report

Canadian Solar 2022 ESG Report

6 About this Report
Canadian Solar’s Sustainability Report was developed in accordance with therecommendations of the Task Force on Climate-Related Disclosures (TCFD), theSustainability Accounting Standards Board (SASB) framework under Solar
Technology & Project Developers standards, and is in accordance with the
Sustainability Reporting Standards (2021 version) released by the Global Reporting
Initiative (GRI).
This report has been created to underscore our
ESG strategy and disclosures, reflecting
feedback gathered from the investmentcommunity and other stakeholders. Unlessotherwise noted, the reporting period coveredin this document spans from January 1, 2022,
to December 31, 2022.
We did not seek third-party verification for thisreport. However, the data collection andcalculation of our greenhouse gas emissions
inventories of scope 1, scope 2 and scope 3
sources were based on the methodology
advised by SGS, a qualified, well-known, andinternational inspection, verification, testing,and certification organization.
Acknowledgements:
This
reportwas
produced as a collective effort across various
departments in Canadian Solar. I would like toexpress gratitude to every individual who
contributed to the production of this report,

namely Mary Ma, Holly Zhang, Isabel Zhang,
Yuan Zhou, Angela Zhang, Heidi Peng, Andrea
Zhu, Jimmy Wang, Katherine Wang, Giulia
Tamanini, Beth McCormack, Susan Chen,
Huizhen Gao, Raffaella Balzaretti, Pauline
Wong, Emma Lenze, Pauline Levean, Giulia
Bettazzi, Cari Collins, Dylan Marx, Dan Barnard,
Stella Su, Shaoting Wan, Xiaobin Zhang, Brian
Bayne, Bernie Jungreithmayr, and David
Pasquale. I would also like to thank themembers of the Board, including Sustainability
Committee members, for their constructive
guidance.
Hanbing Zhang
Chief Sustainability Officer

To provide feedback on our sustainability
report, please contact
ESG@canadiansolar.com

62300MW solar plus 561MWh storage, Slate solar and battery storage plant, U.S.

About this Report

Canadian Solar 2022 ESG Report

Materiality Assessment and Stakeholder Engagement
Canadian Solar actively engages with our internaland external stakeholders to pinpoint and prioritize
the environmental, social, and governance (ESG)
topics of paramount importance to our business andstakeholders.
Ourmateriality
assessment
incorporated insights from an array of internal
stakeholders – including our board of directors,
executive management, and employees throughout
our global operations – and external stakeholders,such as our customers, suppliers, investors,
creditors, local communities, industry associations,NGOs, media outlets, and the scientific community.
This sustainability report outlines key ESG topics andour strategies and actions based on our materiality
analysis, all of which have undergone review by our
Chief Sustainability Officer and the Sustainability
Committee. The results of this comprehensive
assessment enable us to identify opportunities,
mitigate risks, and better integrate ESG principles
into our business fabric.
The right chart describes Canadian Solar’s approachto stakeholder engagement:

Stakeholders

Engagement Methods

Engagement
Frequency

Focus Areas

Employees

Trainings, meetings, emails, surveys, townhalls

OngoingCompany performance, environmental impact and social responsibility

Customers

Meetings, emails, conferences, trade shows,technical workshops

OngoingCompany performance, product quality, social responsibility, supplierassessments

Suppliers

Meetings, emails, conferences, trade shows,technical workshops, surveys, audits

OngoingCompany performance, product quality, procurement practices

Investors/Shareholders

Meetings, earnings calls, emails, conferences,roadshows

OngoingCompany performance, ESG performance

Creditors

Meetings, emails, conferences, trade shows

OngoingCompany performance, credit quality, key risks, ESG performance

Rating Agencies

Meetings, emails, conferences

OngoingCompany performance, credit quality, key risks, ESG performance

Media

Interviews, emails, meetings, trade shows

OngoingCompany performance, ESG performance

Local Communities

Community presentations and meetings, local
tours, training programs

Ongoing

Environmental and ecological impacts, job creation, occupational
health & safety

NGOs

External surveys, emails, partnerships,
meetings, workshops

Ongoing

Environmental, ecological, and social impacts

Scientific Community

Conferences, emails, standards development
meetings, technical workshops

Ongoing

Product quality, environmental impacts, social responsibility, job
creation, supplier assessment

63

Alignment with Standardized Frameworks

Canadian Solar 2022 ESG Report

APPENDIX: Alignment with Standardized Reporting Frameworks
TCFD
TCFD Recommended Disclosures

Response

Governance

TCFD Recommended Disclosures

Response

Risk ManagementA) Describe the board’s oversight of climate-relatedrisks and opportunities

2022 Sustainability Report,
1) Environmental Metrics and Targets, ClimateRelated Risks and Opportunities, p.31-32
2) Governance, Board Committees, p.55

B) Describe management’s role in assessing andmanaging risks and opportunities.

2022 Sustainability Report, Governance, Executive
Management, p.58-59

StrategyA) Describe the climate-related risks andopportunities the company has identified over the
short, medium, and long term.

2022 Sustainability Report,
Environmental Metrics and Targets, Climate-Related
Risks and Opportunities, p.31-32

B) Describe the impact of climate-related risks andopportunities on the company’s businesses,
strategy, and financial planning.

2022 Sustainability Report,
Environmental Metrics and Targets, Climate-Related
Risks and Opportunities, p.31-32

C) Describe the resilience of the company’s strategy, 2022 Sustainability Report,
taking into consideration different climate-related
Environmental Metrics and Targets, Climate-Related
scenarios, including a 2°C or lower scenario.
Risks and Opportunities, p.31-32

A) Describe the company’s processes for identifying
and assessing climate-related risks.

2022 Sustainability Report,
1) Environmental Metrics and Targets, ClimateRelated Risks and Opportunities, p.31-32
2) Governance, Executive Management, p.58-59

B) Describe the company’s processes for managing
climate-related risks.

2022 Sustainability Report,
1) Environmental Metrics and Targets, ClimateRelated Risks and Opportunities, p.31-32
2) Governance, Executive Management, p.58-59

C) Describe how processes for identifying,assessing, and managing climate-related risks areintegrated into the company’s overall risk
management.

2022 Sustainability Report, Governance1) Board Committees, p.55
2) Executive Management, p.58-59

Metrics and Targets
A) Disclose the metrics used by the company to2022 Sustainability Report, Environmental Metrics
assess climate-related risks and opportunities in line
and Targets, p.12-30
with its strategy and risk management process.
B) Disclose Scope 1, Scope 2, and, if appropriate,
Scope 3 greenhouse gas (GHG) emissions, and therelated risks.

2022 Sustainability Report, Environmental Metrics
and Targets, Greenhouse Gas Emissions, p.15-16

C) Describe the targets used by the company tomanage climate-related risks and opportunities andperformance against targets.

1) 2022 Sustainability Report, Environmental Metrics
and Targets, p.12-26
2) Aim to achieve powering our global operations
with 100% renewable energy by 2030

64

Alignment with Standardized Frameworks

Canadian Solar 2022 ESG Report

SASB Content Index
Topic
EnergyManagement in
Manufacturing

Water
Management in
Manufacturing

Hazardous
Waste
Management

Ecological
Impacts ofProject
Development

Accounting Metric(1) Total energy consumed

Category

Unit of Measure

Quantitative

Gigajoules (GJ)

Code

Response

RR-ST-130a.1 6,225,779(2) Percentage grid electricity

Percentage (%)93%(3) Percentage renewable

Percentage (%)

2.1 (only including solar energy generation on site for self-consumption).
The percentage would be 29% if including renewable electricity from thegrid

Thousand cubic meters (m³)8,550(1) Total water consumed

Thousand cubic meters (m³)2,170(2) Total water withdrawn, percentage of each in regions with Highor Extremely High Baseline Water Stress

Percentage (%)26%(2) Total water consumed, percentage of each in regions with Highor Extremely High Baseline Water Stress

Percentage (%)28%(1) Total water withdrawn

Quantitative

Description of water management risks and discussion ofstrategies and practices to mitigate those risks

Discussion and Analysisn/a

RR-ST-140a.2 2022 Sustainability Report, Environmental Metrics and Targets, Water Risk
Management Strategy, p.24

Amount of hazardous waste generated

Quantitative

Metric tons (t)RR-ST-150a.1 1,800

Hazardous waste percentage recycled

Quantitative

Percentage (%)

RR-ST-150a.1 68%

Number and the aggregate quantity of reportable spills

Number0

Spills quantity recovered

Kilograms (kg)0

Number and duration of project delays related to ecologicalimpacts

Quantitative

Number, Days

RR-ST-160a.1 None

Description of efforts in solar energy system project development
to address community and ecological impacts

Discussion and Analysisn/a

RR-ST-160a.2 2022 Sustainability Report, Environmental Metrics, Environmental
Stewardship in Project Development and Operations and Maintenance,
p.28-30

65

Alignment with Standardized Frameworks

Topic

Canadian Solar 2022 ESG Report

Accounting Metric

Category

Unit of Measure

Code

Response

Management ofEnergyInfrastructure
Integration &RelatedRegulations

Description of risks associated with integration of solar energy
into existing energy infrastructure and discussion of efforts tomanage those risks

Discussion and Analysisn/a

RR-ST-410a.1

2022 Sustainability Report, Social Responsibility, Making the Difference
through Community Commitment, p.45-48

Description of risks and opportunities associated with energy
policy and its impact on the integration of solar energy into
existing energy infrastructure

Discussion and Analysisn/a

RR-ST-410a.2

2022 Sustainability Report, Social Responsibility, Making the Difference
through Community Commitment, p.45-48

Product End-oflife
Management

Percentage of products sold that are recyclable or reusable

Quantitative

Percentage (%)

RR-ST-410b.1

2022 Sustainability Report, Environmental Metrics and Targets, ProductEnd-of-Life Management and Recycling, p.26

Weight of end-of-life material recovered, percentage recycled

Quantitative

Metric tons (t),Percentage (%)

RR-ST-410b.2

2022 Sustainability Report, Environmental Metrics and Targets, ProductEnd-of-Life Management and Recycling, p.26

Percentage of products by revenue that contain IEC 62474
Quantitative
declarable substances, arsenic compounds, antimony compounds,
or beryllium compounds

Percentage (%)

RR-ST-410b.3

Our modules are free of IEC 62474 declarable substances except for lead,which is a material used for soldering crystalline PV modules. Leadaccounts for 0.03% of a solar module’s weight. One of our top R&D andsustainability priorities over the coming years is to reduce lead content in
our modules. IEC 62474 is an international standard for material
declarations for the electrical and electronics industry and its suppliers. It
provides requirements for material declarations including a Declarable
Substance List and a material declaration procedure.

Description of approach and strategies to design products forhigh-value recyclingn/a

RR-ST-410b.4

2022 Sustainability Report, Environmental Metrics and Targets, ProductEnd-of-Life Management and Recycling, p.26

Quantitative

66

Alignment with Standardized Frameworks

Canadian Solar 2022 ESG Report

Topic

Accounting Metric

Category

Unit of Measure

Materials
Sourcing

Code

Response

Description of the management of risks associated with the use ofcritical materials

Discussion and Analysisn/a

RR-ST-440a.1 Not applicable, as the company does not use the critical materials definedby SASB

Description of the management of environmental risks associatedwith the polysilicon supply chain

Discussion and Analysisn/a

RR-ST-440a.2 Polysilicon manufacturing processes involve the use of volatile or
dangerous chemicals and waste. Those chemicals are required to behandled with proper training provided. Wastewater and waste gas areprocessed through various treatments so that they meet the respective
discharge standards. Most solid waste generated during the
manufacturing process can be reused and does not contain hazardous
materials. Pollution control systems are set in place to reduce, treat, andrecycle the waste generated in the manufacturing process. Furthermore,laws and regulations are in place to govern water, air, solid waste, andnoise pollution, as well as hazardous chemicals, among others, in places
where the upstream polysilicon suppliers operate. Polysilicon suppliers are
required to obtain all the necessary environmental permits to conductbusiness and are subject to regulation and periodic monitoring by local
environmental protection and work safety authorities. Where there areenvironmental non-compliance incidents, the polysilicon suppliers are
subject to substantial fines and potentially suspension of production orcease operations.

67

Alignment with Standardized Frameworks

Canadian Solar 2022 ESG Report

Global Reporting Initiative Metrics
Statementof useGRI 1 used

GRI 1: Foundation 2021

Applicable
GRI Sector
Standard(s)Not applicable

GRI 2: General Disclosures
2-1

Report its legal name

2-1

Report its nature ofownership and legal
form

Investor-owned corporation, NASDAQ: CSIQ

Report the location of
its headquarters

Guelph, Ontario, Canada

2-1

Report its countries ofoperation

2022 Sustainability Report, About Canadian Solar, p.7

2-2

Entities included in theorganization’ssustainability reporting

2022 Sustainability Report, About Canadian Solar, p.7

2-3

Reporting period,
frequency and contact
point

Reporting period: January 1 to December 31, 2022, unlessotherwise statedFrequency: annual
Contact point: ESG@canadiansolar.com

Restatements of
information

2022 Sustainability Report, Environmental Metrics and Targets,
Water Pollutants and Effluents, p.25
Fluoride for 2021 should be 21.1 metric tons, instead of 12.9
metric tons as stated in last year's report.

2-5

Activities, value chain
and other business
relationships

2-7

Employees2022 Sustainability Report, Social Responsibility, Working at
Canadian Solar, p.35

2-8Workers who are not
employees2022 Sustainability Report, Social Responsibility, Working at
Canadian Solar, p.35

2-9

Governance structure
and composition

2022 Sustainability Report, Governance,
1) Board Committees, p.55
2) Board Members and Duties, p.56

2-10

Nomination and2022 Sustainability Report, Governance, Board Committees, p.55selection of the highest
56
governance body

2-11

Chair of the highest
governance body2022 Sustainability Report, Governance, Board Committees, p.5556

2-12

Role of the highest
governance body inoverseeing themanagement of
impacts2022 Sustainability Report, Governance, Board Committees, p.5556

2-13

Delegation of
responsibility for
managing impacts

2022 Sustainability Report, Governance,
1) Board Committees, p.55-56
2) Executive Management, p.58

2-14

Role of the highest
2022 Sustainability Report, Governance, Board Committees, p.55
governance body insustainability reporting

2-15

2022 Sustainability Report, Governance, Ethical Business Conduct,
p.60
Code of business conduct and ethics

Canadian Solar Inc.

2-1

2-4

2-6

2022 Sustainability Report,
1) About Canadian Solar, p.6-72) Environmental Metrics and Targets, Environmental
Stewardship in Project Development and Operations andMaintenance, p.28
3) Responsible Supply Chain, Supplier ESG Audits, p.52
2022 Annual Report, Results of Operations, p.85-86

Canadian Solar has reported the information cited in this GRI content index for the period
January to December 2022, unless otherwise specified, in accordance to the GRI standards.

External assurance

2022 Sustainability Report, About this Report, p.62

Conflicts of interest

68

Alignment with Standardized Frameworks

Canadian Solar 2022 ESG Report

GRI 2: General Disclosures

2-16

2-17

2-18

2-22

2-23

Communication ofcritical concerns

2022 Sustainability Report,
1) Social Responsibility, Grievance Procedure and Zero Tolerance
for Retaliation, p.40,
2) Whistleblower Policy

Collective knowledge ofthe highest governancebody2022 Sustainability Report, Governance,
1) Board Committees, p.55-56
2) Board Expertise and Training, p.57

Evaluation of theperformance of thehighest governancebody2022 Sustainability Report, Governance, Board Committees,
p.55

Statement onsustainable
development strategy

2022 Sustainability Report,
1) Message from the Chief Executive and Chief Sustainability
Officers, p.3
2) Highlights, p.4-53) Governance, Executive Management, p.58-59

Policy commitments

2022 Sustainability Report,
1) About Canadian Solar, Sustainability at Canadian Solar, p.82) Governance, Ethical Business Conduct, p.60-61

2-24

Embedding policy
commitments

2022 Sustainability Report,
1) About Canadian Solar, Sustainability at Canadian Solar, p.8
2) Social Responsibility, Making the Difference throughCommunity Commitment, p.45-48
3) Responsible Supply Chain, Supplier Code of Conduct, p.52
Supplier Code of Conduct
4) Governance, Ethical Business Conduct, p.60

2-25

Processes to remediate
negative impacts

2022 Sustainability Report, Social Responsibility,
1) Grievance Procedure and Zero Tolerance for Retaliation, p.40
2) Whistleblower Policy

2-26

Mechanisms for seeking
advice and raisingconcerns2022 Sustainability Report, Social Responsibility,
1) Grievance Procedure and Zero Tolerance for Retaliation, p.40
2) Whistleblower Policy

2-27Compliance with laws
and regulations

We comply with laws and regulations in every jurisdiction where
we operate.

2-28

Membershipassociations

2022 Sustainability Report, Social Responsibility, NonGovernmental Organizations and Memberships, p.49

2-29

Approach to stakeholder
engagement

2022 Sustainability Report, About this Report, Materiality
Assessment and Stakeholder Engagement, p.63

2-30

Collective bargaining
agreements

2022 Sustainability Report, Social Responsibility, Freedom of
Association and Collective Bargaining, p.40

GRI 3: Material Topics
3-1

Process to determinematerial topics

2022 Sustainability Report, About this Report, Materiality
Assessment and Stakeholder Engagement, p.63

3-2

List of material topics

2022 Sustainability Report, About this Report, Materiality
Assessment and Stakeholder Engagement, p.63

3-3Management of material 2022 Sustainability Report, About this Report, Materiality
topicsAssessment and Stakeholder Engagement, p.63

GRI 201: Economic Performance
201-1

Direct economic value
generated anddistributed

2022 Annual Report, Results of Operations, p.85-87

201-2

Financial implications
and other risks andopportunities due toclimate change

2022 Sustainability Report, Environmental Metrics and Targets,
Climate-Related Opportunities and Risks, p.31-32

69

Alignment with Standardized Frameworks

Canadian Solar 2022 ESG Report

GRI 203: Indirect Economic Impacts
203-1

Infrastructure investments
and services supported

2022 Annual Report, p.55-58, 80-83; p.F4, F-13, F-15, F18-20, F63

302-3

Energy intensity

Unit: MWh/MW
Ingot production: 75.87
Wafer production: 13.04
Cell production: 64.73
Module production: 17.61

302-4

Reduction of energy
consumption

2022 Sustainability Report, Environmental Metrics and Targets,
Energy Intensity, p.20-22

302-5

Reductions in energy
requirements of products
and services

2022 Sustainability Report, Environmental Metrics and Targets,
Module Carbon Footprint Improvement, p.19

GRI 205: Anti-corruption

205-1

205-2

205-3

Operations assessed forrisks related to corruption

2022 Sustainability Report, Governance, Ethical BusinessConduct, p.60
Prohibition against giving bribes
Prohibition against accepting bribes

Communication andtraining about anticorruption policies andprocedures

2022 Sustainability Report,
Governance,
1) Ethical Business Conduct, p.60
2) Business Ethics Awareness and Compliance Trainings, p.61
Prohibition against giving bribes
Prohibition against accepting bribes

Confirmed incidents ofcorruption and actions
taken

None

GRI 206: Anti-competitive Behavior

206-1

Legal actions for anticompetitive behavior, antitrust, and monopoly
practices

None

GRI 302: Energy

302-1

Unit: Gigajoules (GJ)
Total energy consumption: 6,225,779
Gas: 178,836
Energy consumption within Diesel: 3,890
Gasoline: 2,580
the organization
Steam: 91,820
Grid electricity: 5,186,234
Solar PV electricity: 132,419

302-2

Energy consumption
outside of the organization

GRI 303: Water and Effluents
303-1

Interactions with water asa shared resource

2022 Sustainability Report, Environmental Metrics and Targets,
Water Intensity, p.23-25

303-2

Management of water
discharge-related impacts

2022 Sustainability Report, Environmental Metrics and Targets,
Water Intensity, p.23-25

303-3

Water withdrawal

8,550 thousand cubic meters (m³)

303-4Water discharge

6,380 thousand cubic meters (m³)

303-5Water consumption

2,170 thousand cubic meters (m³)

GRI 304: Biodiversity

304-2

Significant impacts ofactivities, products andservices on biodiversity

2022 Sustainability Report,
Environmental Metrics and Targets, Environmental Stewardshipin Project Development and Operations and Maintenance, p.2830

304-3

Habitats protected or
restored

2022 Sustainability Report,
Environmental Metrics and Targets, Environmental Stewardshipin Project Development and Operations and Maintenance, p.2830

Environmental Metrics and Targets, Greenhouse Gas Emissions,
Scope 3 emissions, p.16

70

Alignment with Standardized Frameworks

Canadian Solar 2022 ESG Report

GRI 305: Emissions
305-1

Direct (Scope 1) GHG
emissions

75,647 metric tons of CO₂ equivalent (tCO₂eq)

305-2

Energy indirect (Scope 2)
GHG emissions

1,213,638 metric tons of CO₂ equivalent (tCO₂eq)

Other indirect (Scope 3)
GHG emissions

256,177 metric tons of CO₂ equivalent (tCO₂eq)

GHG emissions intensity

Unit: tCO₂eq/MW
Ingot production: 65.6
Wafer production:8.2
Cell production: 38.6
Module production:11.0

305-3

305-4

305-5

305-7

Reduction of GHG
emissions

Nitrogen oxides (NOₓ),
sulfur oxides (SOₓ), andother significant air
emissions

306-1

306-2

Management of significant
waste-related impacts

Waste generated

306-4

Waste diverted from
disposal

2022 Sustainability Report, About Canadian Solar,
Environmental Metrics and Targets, Waste Intensity, p.25-26

306-5

Waste directed to disposal

2022 Sustainability Report, About Canadian Solar,
Environmental Metrics and Targets, Waste Intensity, p.25-26

GRI 308: Supplier Environmental Assessment
308-1

New suppliers that werescreened using
environmental criteria

2022 Sustainability Report, Responsible Supply Chain, Supplier
ESG Audits, p.52

308-2

Negative environmental
impacts in the supply chain
and actions taken

2022 Sustainability Report, Responsible Supply Chain, Supplier
ESG Audits, p.52

2022 Sustainability Report, Environmental Metrics and Targets,Greenhouse Gas Emissions, p.15-19
Unit: metric tons (t)Nitrogen oxides (NOₓ): 18.0
Sulfur oxides (SOₓ): 0.1
Fine dust (PM10): 15.5
Hazardous air pollutants (HAP): 12.4
Volatile organic compounds (VOC): 30.6
Persistent organic pollutants (POP): 0
Other standard air emissions: 39.2

GRI 306: Waste

Waste generation andsignificant waste-related
impacts

306-3

Unit: Metric kilotons (kt)Disposed hazardous waste: 0.6
Recycled or reused hazardous waste: 1.2
Disposed non-hazardous waste: 24.1
Recycled or reused non-hazardous: 104.0

2022 Sustainability Report,
1) About Canadian Solar, Understanding the Environmental
Impact of Manufacturing, p.13
2) Environmental Metrics and Targets,
Waste Intensity, p.25-26
Climate-Related Risks and Opportunities, p.31-32
2022 Sustainability Report,
1) About Canadian Solar, Approach to Environment, Health, andSafety (EHS), p.9
2) Environmental Metrics and Targets,
Waste Intensity, p.25-26
Climate-Related Risks and Opportunities, p. 31-32

GRI 401: Employment
401-3

Parental leave

2022 Sustainability Report, Social Responsibility, Work-lifebalance, p.40

GRI 403: Occupational Health and Safety
403-1

Occupational health and2022 Sustainability Report, Social Responsibility, Occupationalsafety management system Health and Safety, p.41

403-2

Hazard identification, risk
assessment, and incident
investigation

2022 Sustainability Report, Social Responsibility, Hazardous
Materials and Environmental Management, p.42

403-3

Occupational healthservices2022 Sustainability Report, Social Responsibility, Occupational
Health and Safety, p.41

403-4

Worker participation,
consultation, andcommunication on
occupational health andsafety2022 Sustainability Report, Social Responsibility, Occupational
Health and Safety, p.41

71

Alignment with Standardized Frameworks

403-5

Worker training on
occupational health andsafetyCanadian Solar 2022 ESG Report

2022 Sustainability Report, Social Responsibility, Occupational
Health and Safety, p.41

403-6

Promotion of worker
health2022 Sustainability Report, Social Responsibility, Occupational
Health and Safety, p.41

403-7

Prevention and mitigationof occupational health andsafety impacts directly
linked by business
relationships

403-8

Workers covered by an
2022 Sustainability Report, Social Responsibility, Occupational
occupational health and
Health and Safety, p.41
safety management system

403-9Work-related injuries

2022 Sustainability Report, Social Responsibility, Occupational
Health and Safety, p.41

403-10Work-related ill health2022 Sustainability Report, Social Responsibility, Hazardous
Materials and Environmental Management, p.42

GRI 405: Diversity and Equal Opportunity
405-1

Diversity of governancebodies and employees

2022 Sustainability Report,
1) Governance, Diversity of the Board of Directors, p.57
2) Social Responsibility, Equity, Diversity, and Inclusion, p.35-37

GRI 406: Non-discrimination
2022 Sustainability Report, Social Responsibility, Occupational
Health and Safety, p.41

GRI 404: Training and Education

406-1

Average hours of training
per year per employee

42.6 hours per employee for 2022
2022 Sustainability Report, Social Responsibility, On-the-Job
Training, p.39

404-2

Programs for upgrading
employee skills andtransition assistanceprograms

2022 Sustainability Report,
Social Responsibility, Talent Strategy, Training andDevelopment, p.38-40

404-3

Percentage of employees
receiving regularperformance and careerdevelopment reviews

None

GRI 407: Freedom of Association and Collective Bargaining

407-1

Operations and suppliers
in which the right tofreedom of association andcollective bargaining may
be at risk

2022 Sustainability Report,
1) Social Responsibility, Freedom of Association and Collective
Bargaining, p.40
2) Responsible Supply Chain, Supplier ESG Audits, p.52

GRI 408: Child Labor
408-1

404-1

Incidents of discriminationand corrective actions
taken

Operations and suppliers
at significant risk forincidents of child laborNone

GRI 409: Forced or Compulsory Labor

409-1

Operations and suppliers
at significant risk forincidents of forced orcompulsory labor

None, we have been taking action to prevent this.
2022 Sustainability Report, Responsible Supply Chain,
1) Anti-Modern Slavery Initiatives, p.51
2) Supplier ESG Audits, p.52

GRI 411: Rights of Indigenous Peoples
100% of full-time employees
411-1

Incidents of violations
involving rights ofindigenous peoples

None

72

Alignment with Standardized Frameworks

Canadian Solar 2022 ESG Report

GRI 413: Local Communities

413-1

Operations with local
community engagement,
impact assessments, anddevelopment programs2022 Sustainability Report,
1) Environmental Metrics, Environmental Stewardship in Project
Development and Operations and Maintenance, p.28-30
2) Social Responsibility, Making the Difference throughCommunity Commitment, p.45-48

413-2

Operations with significant
actual and potential
negative impacts on local
communities

None

GRI 414: Supplier Social Assessment
414-1

New suppliers that werescreened using social
criteria

2022 Sustainability Report, Responsible Supply Chain, p.50-53

414-2

Negative social impacts inthe supply chain andactions taken

2022 Sustainability Report, Responsible Supply Chain, p.50-53

GRI 416: Customer Health and Safety

416-1

Assessment of the healthand safety impacts ofproduct and service
categories

2022 Sustainability Report,
1) About Canadian Solar, Approach to Environment, Health, andSafety (EHS), p.973

Canadian Solar Inc.
545 Speedvale Avenue West
Guelph, Ontario, N1K 1E6
www.canadiansolar.com
ESG@canadiansolar.com