2023
Sustainability
ReportContents

Canadian Solar 2023 Sustainability Report

Forward-Looking Statements

Contents

This report has been prepared by Canadian
Solar Inc. (the “Company” or “Canadian Solar”)
to facilitate a better understanding of theCompany’s
sustainability
strategy
andperformance. The information contained inthis report has not been independently
verified. The Company, its affiliates, advisers,
directors, and representatives will not be held
liable (whether in negligence or otherwise) for
any losses resulting in the use of this report, its
contents, or any other associated issues.

Message from Chief Executive Officer

Certain statements in this report are forwardlooking statements that involve a number ofrisks and uncertainties that could cause actual
results to differ materially. These statements
are made under the “Safe Harbor” provisionsof the U.S. Private Securities Litigation ReformAct of 1995. Forward-looking statements may

be marked by such terms as “believes,”“expects,” “anticipates,” “intends,” “estimates,”or other comparable terminology. Though theCompany considers its expectations expressedinsuchforward-looking
statements
reasonable, it cannot guarantee theirrealization. The Company refers readers to amore detailed discussion of the risks anduncertainties contained in the Company’s
annual report on Form 20-F, as well as otherdocuments filed with the Securities andExchange Commission. Furthermore, allinformation provided in this report, including
forward-looking statements, is as of the date ofthis report’s release on the Company’s website
unless otherwise stated. The Company
undertakes no duty to update suchinformation except as required underapplicable law.

3

Responsible Supply Chain59

ESG Integration in Supply Chain

60

Management

Highlights

About Canadian Solar

4

Anti-Modern Slavery Initiatives

60

Supplier Code of Conduct

61

Supplier ESG Audits

61

Conflict Minerals

62

Governance

63

7

Sustainability at Canadian Solar

9

Approach to Environment, Health, and Safety (EHS)

12Compliance with Environmental Regulations

12

Board Committees

64

Circular Economy

13

Summary of Board Members and Duties

65

International ESG Initiatives

15

Diversity of the Board of Directors

66

Board Expertise and Training

66

Executive Management

67

Ethical Business Conduct

69

Cybersecurity

70

About this Report

72

Environment Metrics and Targets

18

Greenhouse Gas Emissions

22

Energy Intensity

26

Water Intensity

29

Waste Intensity

31

Product End-of-Life Management and Recycling

33

Environmental Stewardship in Project

35

Development and Operations and Maintenance
Climate-Related Risks and Opportunities

38

Social Responsibility

41

Working at Canadian Solar

42

Diversity, Equity, and Inclusion

42

Talent Strategy, Training, and Development

46

Freedom of Association and Collective Bargaining

49

Occupational Health and Safety

50

Connecting Employees with Our Mission

52

Making a Difference through55

Appendix:Global Reporting Frameworks 74
SASB Index

75

IFRS Disclosures

77

GRI Metrics

79

Community Commitment

2

Message from the Chief Executive Officer

Canadian Solar 2023 Sustainability Report

Message from the Chief Executive Officer
We are delighted to share Canadian Solar's annual Sustainability Report, which showcases the incredible progress we have made as a clean energy company committed to sustainable practices. We continue toembed sustainability deeply within the fabric of our operations and remain unwavering in our commitment to ambitious ESG goals. This report provides a comprehensive overview of our progress andachievements, demonstrating the substantial impacts we have achieved for the environment, our employees, the communities we support, and our stakeholders broadly. We would like to highlight three key
areas of focus in this report:

1. We have made significant progress in reducing the environmental
impact of our own operations and through technological andoperational advancements, continue to help our customers andpartners reduce their environmental impact. In 2023, we reduced GHG
emissions, energy, water, and waste intensity by 37%, 37%, 72%, and 54%,
respectively. We have diligently reported our GHG emissions since 2021.
With metrics that now encompass total emissions across scopes 1 and 2,
we have also broadened our scope 3 categories to include category 9(Downstream Transportation and Distribution) and category 13(Downstream Leased Assets) emissions. We remain firmly on course topower all our operations with 100% renewable energy by 2030.
This year marked significant advancements in both our solar and batteryenergy storage solutions. We began mass production of our N-type
TOPCon solar modules, achieving industry-leading efficiency rates andpower ratings. These advancements not only reduce Levelized Cost of
Energy (LCOE), but also minimize the environmental impact of solar
projects using Canadian Solar's TOPCon modules. In the realm of batteryenergy storage, we launched a new iteration of our utility-scale product
SolBank, enhancing both cost-efficiency and environmental impact.
Furthermore, we advocate for a circular economy, maximizing resource
efficiency through the principles of reducing, reusing, and recycling. BothCSI Solar and Recurrent Energy are integrating the recycling of solar
modules and battery energy storage components into our operations,collaborating with global third-party partners. For instance, in the U.S., weare negotiating an agreement with a new partner to recycle our solar
modules at the end of their life cycle. Additionally, Recurrent Energy isstandardizing its decommissioning processes, drawing on the exemplarymodel from its 98-megawatt Bayou Galion project.

2. We remain firmly committed to a responsible supply chain andhave made meaningful progress in ethical labor practices across ourown operations and within our supply chain. In 2023, we conducted 129
supplier ESG audits, which included 29 on-site evaluations, an increase
from the 122 audits and 17 on-site audits conducted in 2022. Following
thorough consultations and the implementation of necessary corrective
action plans, all suppliers have met our ESG standards.

As we move forward, our focus remains on
intensifying our ESG initiatives, leveraging
innovativetechnologies,
andenhancingstakeholder engagement. We thank you for yourcontinued trust and support in Canadian Solar, as
we work together to foster a more sustainable
future.

Moreover, in 2023, we commenced and successfully completed an RBA
VAP audit at our module manufacturing facility in Thailand, where weachieved a silver-level recognition, confirming our adherence to the"Freely Chosen Employment" standards – that is, no forced labor in ouroperations. In 2024, we began another RBA VAP audit at our cell factory in
Suqian, Jiangsu Province, China, and are planning to initiate an additional
audit at our ingot factory in Qinghai Province, China, within the year.
Additionally, one of our key polysilicon suppliers in Qinghai Province,
China initiated an RBA VAP audit upon our recommendation.
3. We have enhanced our disclosures to accurately reflect the ongoing
evolution of our business and to improve the transparency of our ESG
progress. This year, we have added key environmental metrics for eSTORAGE, recognizing the critical role battery energy storage plays inintegrating solar and other renewable energy sources into the power grid,
thus increasing the adoption of clean energy globally.
With BlackRock's investment, Recurrent Energy has also intensified its
focus on establishing and achieving its ESG targets. In 2024, we arededicated to enhancing our climate risk program to align with stakeholder
expectations. We have initiated a standalone ESG strategy for Recurrent
Energy, underpinned by a double materiality assessment conducted inpartnership with a third-party sustainability firm, adhering to theEuropean Union’s Corporate Sustainability Reporting Directive (CSRD).

Shawn Qu
Chairman and Chief Executive Officer

3

Canadian Solar 2023 Sustainability Report
Highlights

About Canadian Solar

Environmental Metrics and Targets

Social Responsibility

Responsible Supply Chain

Governance

About this Report

Appendix

Highlights
23 Years> 22,000

125 GW

350 million

Employees worldwide,
32% is female

Solar modules
delivered

Tons of CO₂ emissions
displaced> 32 million> 10 GWp> 3 GWh

1 YearHouseholds powered

Solar project developed
and connected

Battery energy storage
projects energizedSolar modules
greenhouse gas
payback time

World Class Brand

Low Carbon
Foorprint

ISO Certifications

Global tier 1 player insolar and battery storage
100% revenues related
to renewable energy

Tier 1 Solar Company,
BloombergNEF (2017-2023)
Tier 1 Energy Storage
Manufacturer,
BloombergNEF (2Q 2024)
Top Brand PV USA, EUPD
Research (2024)

From French ECS,
Italian EPD and South
Korean KNREC lifecycle
certifications for solar
modules

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

4Canadian Solar 2023 Sustainability Report
Highlights

About Canadian Solar

Environmental Metrics and Targets

Social Responsibility

Responsible Supply Chain

Governance

About this Report

Appendix

Highlights
Circular Economy
Product R&D
2017–2023 energy conservation and emission reductions
37% decrease in GHG emissions intensity
37% decrease in energy intensity
72% decrease in water intensity
54% decrease in waste intensity
Packing materials 100% recycled or reused in 2023
Product end-of-life management plan in place

International ESG Initiatives and Recognitions
Contributor to United Nations Sustainable Development Goals (UN SDGs)

ESG Goals
From 2023 to 2028, targeting:
22% decrease in GHG emissions intensity
22% decrease in energy intensity
15% decrease in water intensity
20% decrease in waste intensity
Powering global operations with 100% renewable energy before 2030

5

Canadian Solar 2023 Sustainability Report
Highlights

About Canadian Solar

Environmental Metrics and Targets

Social Responsibility

Responsible Supply Chain

Governance

About this Report

Appendix

Highlights
International ESG Initiatives and Recognitions

ISS ESGPrime Rating
Industry Top 5% (2024)

EcoVadis Silver Sustainability Rating
Industry Top 5% (2024)

UNEF
Seal of Excellence for Sustainability (2024)

United Nations Global Compact (UNGC)
Active Participant

Solar Stewardship Initiative
Membership (2024)

Science-Based Targets initiatives
Near-term and Net Zero Targets
committed

RBA VAP Audits
In Progress (2024)

CDP Climate Change Disclosure

Achilles ESG Assessment
Excellent Rating

Environmental FinanceGreen Project Bond of the Year (2024)

Environmental Finance
Sustainability Reporting of the Year (2023)

6

Canadian Solar 2023 Sustainability Report
Highlights

About Canadian Solar

Environmental Metrics and Targets

Social Responsibility

Responsible Supply Chain

Governance

About this Report

Appendix

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 technology and renewable energy companies. It is aleading manufacturer of solar photovoltaic modules, provider of solar energy and battery energy storage solutions, and developer of utility-scale solar power and battery energy
storage projects with a geographically diversified pipeline in various stages of development. Over the past 23 years, Canadian Solar has successfully delivered over 125 GW of premiumquality, solar photovoltaic modules to customers across the world. Likewise, since entering the project development business in 2010, Canadian Solar has developed, built, andconnected over 10 GWp of solar power projects and 3.3 GWh of battery energy storage projects across the world. Currently, the Company has over 1.2 GWp of solar power projects inoperation, 6.5 GWp of projects under construction or in backlog (late-stage), and an additional 19.8 GWp of projects in advanced and early-stage pipeline. In addition, the Company has
600 MWh of battery energy storage projects in operation and a total battery energy storage project development pipeline of around 56 GWh, including approximately 4.3 GWh underconstruction or in backlog, and an additional 51.6 GWh at advanced and early-stage development. Canadian Solar is one of the most bankable companies in the solar and renewableenergy industry, having been publicly listed on the NASDAQ since 2006.

In this Section

7

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

9
12
12
13
15

7

About Canadian Solar

Canadian Solar 2023 Sustainability Report

The Company has two business segments: CSI Solar and Recurrent Energy.
CSI Solar consists of solar module and battery energy storage manufacturing, and delivery of total
system solutions, including inverters, solar system kits, and EPC (engineering, procurement, andconstruction) services. CSI Solar’s e-STORAGE branded battery energy storage business includes its
utility-scale turnkey battery energy system solutions. These systems solutions are complemented
by long-term service agreements, including future battery capacity augmentation services.

North America
CanadaGuelph: Global HQ

Recurrent Energy is one of the world’s largest clean energy project development platforms with 15
years of experience, having delivered over 10 GWp of solar power projects and 3.3 GWh of batteryenergy storage projects. It is vertically integrated and has strong expertise in greenfieldorigination, development, financing, execution, operations and maintenance, and asset
management.

EuropeU.S.

Austin: North America HQ
Mesquite, Texas
Jeffersonville, Indiana
Walnut Creek
San Francisco
New York City

Germany

Munich: EMEA CSIS HQFrankfurt

U.K.

LondonColchester

Spain
Madrid: EMEA RE HQ
Servilla
Barcelona
Badajoz

Italy

PolandMilan

Warsaw

Latin America

FranceBiarritz

Netherlands
Amsterdam

Asia Pacific
P.R. China

Suzhou: China HQYancheng
YangzhouFuningSuqianLuoyang
BaotouHohhotJiaxing
XiningBeijing
Jinan
Guangzhou
Kunming
Wuhan
Wuhu
Hong Kong, SAR

South Korea
Seoul
GwangjuIndia
New Delhi

Thailand
ChonburiVietnamHai Phong

Malaysia
Kuala Lumpur

Singapore
Singapore

Taiwan, China Australia

BrazilHsinchuSão Paulo

MexicoMelborne
SydneyJapan

Mexico City

Tokyo
Osaka

Colombia
Bogotá

Chile

Santiago

Middle East
and Africa

U.A.E.
Dubai

South Africa

Manufacturing operations

Cape Town

8About Canadian Solar

Canadian Solar 2023 Sustainability Report

Sustainability at Canadian Solar
As a global leader in the renewable energy industry, Canadian Solar derives 100% of our revenues from renewable energy. Canadian Solar is committed to powering the world with solar energy and creating acleaner earth for future generations. At Canadian Solar, we are committed to improving our practices to ensure long-term sustainability by integrating Environmental, Social, and Governance (ESG) considerations
into our business and strategic decisions.

Environmental

SocialGovernanceWorking sustainably within ourplanetary boundaries

Committing to socially responsible
and equitable outcomes

Demonstrating responsible
conduct

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

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

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

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

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

SocialLabor 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)

Governance
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）

9

About Canadian Solar

Canadian Solar 2023 Sustainability Report

Sustainability at Canadian Solar
At CSI Solar, we are firmly committed tominimizing the environmental footprint of ouroperations and products. From product R&D to
manufacturing and end-of-life management,
we proactively strive to prevent pollution,
optimize energy use, responsibly manage
waste, all of which contribute to a moresustainable future. The total electricity
generated by 125 GW of our cumulative solar
modules shipped over the past 23 years is
equivalent to displacing approximately 350
million tons of CO₂ emissions or powering over
32 million households.

Recurrent Energy shares this commitment tosustainable practices across our operations. In
addition to developing, owning, and operatingenergy projects that reduce carbon emissions,
we prioritize sustainability in our day-to-day
operations. We have developed and connected
over 10 GW of solar power projects and morethan 3 GWh of battery energy storage projects
worldwide. The energy generated by thesefacilities amounts to approximately 78,000
GWh, equivalent to offsetting 41 million tons of
CO₂ emissions or supplying power to around
2.5 million households.

Canadian Solar Green Financing Framework
As part of our long-standing commitment tosustainability, we have updated our Green
Financing Framework (link) in 2024. This
comprehensive update extends beyond project
development to encompass the entire
spectrum of our operations, including bothsolar and battery energy storage project
development,
as
well
as
product
manufacturing. Both the previous and current
versions of our framework have received asecond-party opinion (link) from Sustainalytics,
a leading firm in ESG and corporate
governance research and analytics.

The new framework is aligned to theInternational Capital Market Association (ICMA)
Green Bond Principles (GBP) 2021, amended inJune 2022, aiming to encompass futureissuances in the capital markets, and the Green
Loan Principles (GLP) updated in February 2023
published by the Loan Market Association(LMA), Loan Syndications and Trading
Association (LSTA) and the Asia Pacific Loan
Market Association (APLMA), aiming toencompass bilateral or syndicated loans withfinancial institutions and/or multilateralagencies.

144 MWac Pflugerville Solar Project, U.S.

10

About Canadian Solar

Canadian Solar 2023 Sustainability Report

Recurrent Energy Standalone ESG Program

BlackRock Investment in Recurrent Energy

As a responsible steward of environmental andsocial resources, Recurrent Energy is currently
developing a standalone ESG strategy andprogram, with the vision of fully integrating
ESG considerations throughout our business
operations. Recurrent Energy is committed toadvancing our mission to deliver clean,reliable, and affordable power to the world.

In January 2024, Recurrent Energy secured a $500 million¹ investment commitment from BlackRockthrough a fund managed by its Climate Infrastructure business. The investment will facilitate
Recurrent Energy’s strategy to transition from a pure developer of solar and battery energy
storage projects to a developer plus long-term owner and operator. As Recurrent Energy
transitions into long-term project ownership, new and exciting challenges will emerge for us todemonstrate excellence in project management on ESG topics.

As part of our strategy development process,
Recurrent Energy has conducted an ESG topic
materiality
assessment
followingthemethodology outlined by the European Union’s
Corporate Sustainability Reporting Directive(CSRD) (link) Double Materiality Assessment.
This assessment is designed to identify ESG
topics that may impact the business financially,
including both risks and opportunities, as wellas those topics that may be affected by ouroperations. The assessment leverages a robust
stakeholder engagement process, including
key internal and external stakeholders, todetermine priority focus areas for business
implementation and to meet important
regulatory reporting requirements. We

anticipate completion of the CSRD-aligned
double materiality by mid-2024.
Recurrent Energy’s final set of material topics
and related impacts, risks, and opportunities(IROs) will demonstrate both financial andimpact materiality and be supported bycomprehensive evidence as prescribed by the
CSRD’s rigorous methodology. Recurrent
Energy’s ESG program implementation andfuture ESG reporting will be based on the
results of this analysis and will be supported by
topic-specific goals, strategies, and initiatives.
Recurrent Energy will commence reporting as
an independent subsidiary in 2025, providing
both financial and ESG information based on
2024 data, including the materiality results
mentioned above. Our future activities include
determining appropriate key performanceindicators (KPIs) and setting thoughtful ESG
targets, measuring GHG emissions across
Recurrent Energy’s global operations, andenhancing
ESG
management
practices
throughout our operations.

“Sustainability is a fundamental part of our DNA. For thisreason, we commit to Sustainability, not only out of the need tocomply with increasingly demanding requirements, but
because we are convinced of the opportunity it represents tomaintain our level of excellence, to meet the needs of our
stakeholders, and to continue to positively contribute to ourenvironment and society.”“We are delighted to have the support of BlackRock, one of the largest and mostsophisticated renewable energy investors in the world, as we scale Recurrent Energy inresponse to massive global demand for renewable energy and energy storage solutions.
This investment will support our growth and continued ambition to make a difference byleading the renewable energy transition across the world. Our mission is to deliver clean,reliable and affordable power to the world, today and tomorrow, and this milestone will
help us continue to achieve this goal.”– Ismael Guerrero, CEO of Recurrent Energy“We are excited to partner on behalf of our clients with Recurrent Energy. We believe thispartnership will help unlock the full potential of Recurrent Energy’s impressive renewableenergy project development platform. Recurrent Energy is emblematic of our strategy ofinvesting in leading renewable power generation assets and transition-enabling
infrastructure, and we are pleased to make this first investment commitment from thefourth vintage of BlackRock’s Climate Infrastructure fund franchise.”- David Giordano, Global Head of Climate Infrastructure andChief Investment Officer of Transition Capital, BlackRock– Inés Arrimadas - Chief Communications and ESG Officer of Recurrent Energy

1 The $500 million investment will represent 20% of the outstanding fully diluted shares of Recurrent Energy on an as-converted basis.
Canadian Solar will continue to own the remaining majority shares of Recurrent Energy after the closing of this investment.

11About Canadian Solar

Canadian Solar 2023 Sustainability Report

Approach to Environment, Health, and Safety (EHS)
Canadian Solar is committed to maintaining a safe work environment for our
employees, contractors, and visitors. We strictly comply with all relevant laws andregulations in every jurisdiction where we operate. We are dedicated to minimizing
the environmental impact of our business operations and demonstrating respect
for nature and biodiversity.
At CSI Solar, we place a strong emphasis onenvironmental excellence, health, and safety.
We follow advanced standards and systems,
and our operations are certified under
ISO14001(environmental
management
system), ISO45001 (occupational health andsafety management), ISO50001 (energy
management system), and ISO9001 (quality
management system).

At Recurrent Energy, we prioritize and ensure
environmental protection and occupational
health and safety through preventative
measures and continuous improvement
initiatives. Recurrent Energy is making
significant progress towards compliance with
ISO9001 (quality management system) andISO45001 (occupational health and safety
management system), aiming to obtain thesetwo certifications by the end of 2025.

Moreover, we also strictly adhere to Toxicity
Characteristic Leaching Procedure (TCLP)
testing for our PV module portfolio 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 United States (U.S.) Environmental
Protection Agency (EPA) under the Toxic
Substances Control Act (TSCA) for landfill
disposal of solar modules.

Compliance with Environmental Regulations
100% of Canadian Solar's revenues are derived
from renewable energy. Our businesses help
our customers achieve their clean energy
goals. We follow all relevant environmental
laws and regulations, and have obtained allnecessary environmental permits, including
those related to air emissions, water discharge,
and the management and disposal of solid andhazardous wastes and chemicals.
We closely monitor changes in environmental
regulations to ensure continual compliancewith local laws and regulations. Whendeveloping new projects, we perform thoroughEnvironmental, Health, and Safety (EHS)
studies to pinpoint and mitigate potential
environmental impacts and worker safetyconcerns.

At CSI Solar, our solar products are designed
to comply with the environmental regulations
applicable to the jurisdictions in which they are
installed. We strive to ensure that our products
comply with Regulation (EC) No. 1907/2006 of
the European Parliament and of the Council
concerning the Registration, Evaluation,
Authorization and Restriction of Chemicals(REACH). Our solar system solutions productlines, including string inverters, also comply
with the European Union’s (EU’s) RoHS
(Restriction of Hazardous Substances) Directive
2011/65/EU and its subsequent amendments.
As per article 2 of the RoHS, solar photovoltaic(PV) modules are exempt from this legislation,in accordance with the European Commission’s
decision to ensure the achievement of energy
renewable targets.

Our battery energy storage products havebeen designed to meet all applicable
environmental regulations, and we impose
strict requirements on our suppliers to meetcorresponding regulations as well. For
example, the key components of our products,
such as battery cells and air conditioning units,comply with RoHS and REACH. In July 2023, theEU published Regulation 2023/1542 regarding
batteries and waste batteries. We are working
closely with third party experts to actively

evaluate and ensure that our products meetthe latest requirements at every stage of theirproduct lifecycle.
We conduct ESG audits to inspect the ESG
performance of our suppliers. One of the
major purposes of the audits is to ensure our
suppliers comply with our environmental
management requirements, including carbon
footprint and GHG emissions, as well as
applicable laws and regulations, such as
REACH for both the EU and the United
Kingdom(U.K.),
the
RoHS,
the
U.S.
Environmental
Protection
AgencyToxic
Substances Contract Act (TCSA) with specificreference to Polybutylene Terephthalate (PBT)
and the Toxic Characteristic Leaching
Procedure (TCLP).
At Recurrent Energy, we are committed toproactively minimizing any potential adverse
environmental
andecologicalimpacts
resulting from our project development
activities. Throughout the project lifecycle, we
integrate and prioritize the evaluation ofenvironmental and ecological impacts, alongwith community engagement into our internal
approval process at the early stages in the
project development process for each solar
and battery energy storage project wedevelop. By considering these factors during
the project planning phase, we effectively
minimizeprojectdelaysrelatedtoenvironmental and ecological concerns orcommunity engagement issues. This proactive
approach not only ensures compliance withregulatory requirements but also displays ourcommitment
toresponsible
project
development and environmental stewardship.

12

About Canadian Solar

Canadian Solar 2023 Sustainability Report

Circular Economy
At Canadian Solar, we promote a circular economy philosophy directed at maximizing
material resources through the 3R principles of reduce, reuse, and recycle. These
principles are woven into all aspects of our operations and businesses from smart
product design and responsible manufacturing to sustainable project development
and effective product end-of-life management.
As a responsible provider of solar and battery energy storage products, CSI Solar aims to minimize
waste and promote the sustainable use of resources through product design, manufacturing, andproduct-end-of-life management.

Product R&D

Energy, water, waste
and GHG emissions
reduction targets

High reliability & long life
High power & efficiency
Low carbon footprint

Product
End-of-Life
Management

Manufacturing

Recyclingcollaborations
Decommissioning
best practice

Recurrent Energy’s
Environmental Policy

ReduceReuse
RecycleProduct Research and Development (R&D)
R&D has played a critical role in driving reductions in resource usage across
manufacturing, transportation, and utilization of our module products, thereby lowering
the environmental impact of solar power projects using Canadian Solar’s modules.
Increasing solar module lifetime through enhanced product reliability has “the biggest
effect” on reducing product life-cycle waste.² To achieve this, we have developed anddeployed inhouse testing standards that are two to three times more rigorous than thoseprescribed by the International Electrotechnical Commission (IEC), which serves as thebenchmark for the solar industry. For example, our TOPCon (Tunnel Oxide PassivatedContact) bifacial solar modules demonstrated less than 1% power degradation after
undergoing a damp heat test lasting 2,000 hours, well below the 5% threshold required by
the IEC for a 1,000-hour test. Therefore, given our products’ reliability, our regular TOPCon
modules come with a 30-year power warranty and low power degradation. We have also
developed solar modules with an extended lifetime, lasting up to 40 years.
Our newly developed PV technologies have elevated solar module efficiency to 23.0% in
2023, a substantial increase from 13.9% in 2010. With higher module efficiency, we canproduce modules of the same power using fewer materials, reducing the overall cost of
the balance of system (BOS) and Levelized Cost of Energy (LCOE) for solar power projects.
A key focus of our R&D efforts is to develop products that are easy to recycle and suitable
for reuse, such as fluoride-free modules. Additionally, we aim to minimize our carbon
footprint in transportation by optimizing the dimensions of our module products tomaximize the quantity loaded per container. Beyond product design, we are also currently
developing cost-efficient and environmentally responsible recycling solutions.

Project Construction
and O&M

2 Ovaitt, S., Mirletz, H., Seetharaman, S. and Barnes, T. (2022). PV in the circular economy, a dynamic framework analyzing technology
evolution and reliability impacts. iScience, 25(1), p.103488. doi: https://doi.org/10.1016/j.isci.2021.103488.

13About Canadian Solar

Canadian Solar 2023 Sustainability Report

Manufacturing

Product End-of-Life Management

To minimize our environmental impact and lower the costs of our manufacturing
operations, we adhere to the 3R principle: reduce, reuse, and recycle.

The rapid expansion of solar PV installations highlights the increasing importance of endof-life management for decommissioned modules. To further reduce our environmental
footprint throughout the product lifecycle, it is crucial to continue developing sustainable
solutions for product end-of-life management.

To reduce, we decrease material use and waste by continuously improving our production
yield rate and decreasing material consumption per unit of production, as well as reducing
our energy and water intensity. These objectives have been included in the Key
Performance Indicators (KPIs) of our production teams.
To bolster reuse, we have developed and adopted protocols and tools that facilitate thereuse of packaging materials, liquid bottles, and tanks by collaborating with partners
across our supply chain. As a result, in 2023, 100% of our packing materials were either
reused or recycled.
To enhance recycling, we have implemented projects aimed at maximizing the reuse ofenergy, water, and waste, to minimize disposal. For example, all cooling water from ourmanufacturing operations is recycled. In critical manufacturing processes such as solar cellprocessing, which involves chemicals, we recycle and treat the process water to meetproduction standards and then reuse it to maximize water utilization. Furthermore, we
separate and collect recyclables from solid waste before disposal.

As a responsible solar module provider, CSI Solar collaborates with qualified local service
suppliers to recycle and reuse end-of-life products. For example, we are currently
negotiating an agreement with a partner in the U.S. to recycle Canadian Solar modules thatare damaged or have reached the end of their lifespan. In Europe, we continue tocooperate with recycling service providers to ensure we maintain full compliance with all
Waste of Electric and Electronic Equipment (WEEE) obligations.
Recurrent Energy shares a commitment to the proper recycling and reuse of solar modules
and battery equipment. We work in tandem with the local communities surrounding our
project sites to plan proper end-of-life decommissioning. In 2024, Recurrent Energy will
release a global waste management policy and plan, which will further outline our 3R
objectives while minimizing waste generation during the construction, operations, anddecommissioning phases of our projects.

Project Construction and O&M
Recurrent Energy carefully undertakes the construction and operations of our solar andbattery projects to minimize waste generation and to reuse or recycle materials where
possible. Recurrent Energy’s Environmental Policy establishes a clear mandate forconserving natural resources, preventing pollution, and minimizing environmental impact
of waste generation by encouraging team members, suppliers, and customers to reduce,reuse, and recycle.

14About Canadian Solar

Canadian Solar 2023 Sustainability Report

International ESG Initiatives
Institutional Shareholder Services (ISS) ESG Corporate Rating,Prime Status
Canadian Solar once again attained a “Prime” ESG status, and “B” ratingfrom ISS ESG in early 2024. This accomplishment places Canadian Solaramong the top 5% of the semiconductor industry and solidifies its
position as an industry leader in ESG performance. The "Prime" status
signifies the highest level of ESG performance, recognizing companies
that demonstrate exceptional dedication to sustainability.
The ISS ESG Corporate Rating serves as a vital resource for investors, offering an in-depth, industryspecific evaluation of a company’s ESG performance. ISS ESG is the responsible investment arm ofISS (Institutional Shareholder Services Inc.). ISS, founded in 1985 and headquartered in Maryland,
the U.S., is the world’s leading provider of ESG solutions for asset owners, asset managers,
investors, and asset servicing providers.

Environmental Finance, Green Project Bond of the Year Award
Canadian Solar won Environmental Finance’s Green Project Bond of theYear Award (link) in April 2024, recognizing our JPY 18.5 billion Green
Samurai private placement completed in 2023. Canadian Solar’s threeyear green project bond tapped into a vast network of Japanesefinancial institution investors to open access to a wider pool ofinvestors. The innovative bond enhances liquidity and flexibility,
empowering Canadian Solar’s global development business, Recurrent
Energy, to grow solar and battery energy storage projects underdevelopment, as well as its asset management business.
This is the second Green Broject Bond of the Year Award Canadian Solar has received from
Environmental Finance, following the one awarded in 2018 for Canadian Solar’s JPY 5.4 billion ($47
million) Gunma Aramaki project bond placement with Goldman Sachs Japan.
Environmental Finance’s annual Sustainable Debt Awards celebrate leading green, social,sustainable, and sustainability-linked bond and loan deals and recognize market innovations.

EcoVadis, Silver Sustainability Rating
In April 2024, Canadian Solar received a silver rating from
EcoVadis, one of the world’s largest and most trusted providers ofbusiness sustainability ratings, headquartered in Paris, France.
This rating places Canadian Solar in the top 5% of companies
rated by EcoVadis within the company’s industry.
EcoVadis’ sustainability assessments evaluate a company’s performance in terms of environment,labor and human rights, ethics, and sustainable procurement. Canadian Solar ranked among the
top 3% and top 4% for environmental and sustainable procurement practices, respectively. This
achievement underscores our dedication to sustainable practices while advancing cutting-edgeenergy solutions.

Achilles ESG Score, Excellent Rating
Following 2022, Canadian Solar once again received the highest possible rating of 'Excellent' fromAchilles (link) in 2024. Through a series of extensive questionnaires, the Achilles ESG score helps
companies identify potential ESG issues within their supply chains. Achilles pre-qualifies and scores
suppliers according to ESG, financial, and health and safety standards. Established in the 1990s andheadquartered in the U.K., Achilles serves a network of over 550 buyers and 100,000 suppliers
across various industries.

Seal of Excellence for Sustainability, UNEF (2024)
Recurrent Energy received the Seal of Excellence for sustainability
from the Unión Española Fotovoltaica (UNEF) at the Spanish
Congress of Deputies in early 2024. This honor recognizes ourcommitment to sustainability in our Villameca I and Villameca IIsolar power projects in Spain.
The Seal of Excellence in Sustainability was created by UNEF in 2020 to disseminate the bestpractices of companies operating within the Spanish PV sector, reinforcing the commitment of thecountry to sustainable energy transition. The Seal evaluates the socio-economic impact,
governance criteria, environmental integration, biodiversity protection, material recycling andwaste management of projects within the sector.

15About Canadian Solar

Environmental Finance, Sustainability Reporting of
the Year Award
Canadian Solar received the Sustainability Reporting of the Year – Global
Award (link) as part of Environmental Finance’s 2023 Sustainable Company
Awards in September 2023. This award recognizes Canadian Solar’s efforts inproviding transparent, comparable, and comprehensive sustainability
reporting which enables our stakeholders to better understand Canadian
Solar’s strategy, commitments, and progress towards achieving oursustainability goals. Environmental Finance, headquartered in the U.K. andestablished in 1999, is a leading global publication in the industry.

Canadian Solar 2023 Sustainability Report

Solar Stewardship Initiative (SSI)In May 2024, Canadian Solar joined the Solar Stewardship Initiative(link), a European initiative set up by SolarPower Europe and Solar
Energy UK. The SSI’s mission is to work collaboratively with
manufacturers, developers, installers, and purchasers across theglobal solar value chain to foster responsible production, sourcing, and stewardship of materials.
Over 40 organizations active in the solar industry and/or supply chain responsibility are membersof the SSI, which is also endorsed by the International Finance Corporation (a member of the WorldBank Group) and the European Investment Bank.

The Science Based Targets initiatives (SBTi)
Ernst & Young (EY), Sustainability Excellence Awards- Excellent Individuals
Dr. Shawn Qu, Chairman and CEO of Canadian Solar, was honored as the
Excellent Individual at the EY Sustainable Excellence Awards (link) in
November 2023. This award recognized Dr. Qu's innovative leadership andsignificant contribution to sustainability in the renewable energy sector. EY isa global leader in assurance, tax, transaction, and advisory services. The EY
awards celebrate exceptional sustainable development initiatives among
listed companies, spanning green growth, rural development, innovation,and industry leadership.

United Nations Global Compact (UNGC)
In June 2023, Canadian Solar became a participant of United Nations Global
Compact, the world’s largest voluntary corporate sustainability initiative(link). By joining the UNGC, we have committed to adhering to the UNGC’s
Ten Principles covering human rights, labor, environment, and anticorruption, while also contributing to the United Nations Sustainable
Development Goals (SDGs).
We plan to continue our participation in UNGC in 2024 and are currently inthe process of preparing a Communication on Progress report, which isscheduled for submission to UNGC by the end of July 2024. This report will
detail our progress towards the Ten Principles and UN SDGs.

Following the submission of our commitment letter in July 2023, we are
currently developing our near-term and net-zero science-based climate
targets for submission to the SBTi for validation by July 2025.
Founded in 2015, the SBTi is a joint effort of Carbon Disclosure Project(CDP), the UNGC, World Resources Institute (WRI), and World Wildlife Fund (WWF) under the We
Mean Business Coalition. The SBTi establishes best practices for target setting and assesses
corporate targets according to current climate research.

CDP Climate Change Disclosure
Canadian Solar participated in the CDP's 2023 Climate Change disclosure(link), addressing issues relating to climate risks and opportunities amidst
the shift towards a low-carbon economy. We received a C score, which isaverage among companies in the North American, global, and renewableenergy equipment sectors. We will continue to improve our practices and will participate in the
CDP’s 2024 Climate Change disclosure (link). The CDP's online response system is scheduled toopen in June and close in September 2024.
The CDP operates as an international non-profit organization, providing environmental disclosuresystems for stakeholders to effectively manage their environmental footprint.

16About Canadian Solar

Canadian Solar 2023 Sustainability Report

RBA Validated Assessment Program
The Responsible Business Alliance (RBA) Validated Assessment Program (VAP) (link) is the leading
standard for on-site compliance verification conducted by RBA-accredited independent, third-party
firms. The on-site audit assesses 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 solar module 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, indicating no presence offorced labor.
In 2024, we have initiated an RBA VAP audit at our solar cell factory in Suqian, Jiangsu Province,
China. The auditing agreement has been signed and we are working with RBA to schedule theonsite audit date. Additionally, we plan to do another RBA VAP audit at one of our ingot factories in
Qinghai Province, China this year. Concurrently, one of our polysilicon suppliers, located in Qinghai
Province, China, has initiated an RBA VAP audit at our request. It is worth noting that the RBA VAP
auditing process is lengthy and may take several months to complete.

7.5 MW/30 MWh Dunhuang Solar and Battery Energy Storage Plant, China

17

Canadian Solar 2023 Sustainability Report
Highlights

About Canadian Solar

Environmental Metrics and Targets

Social Responsibility

Responsible Supply Chain

Governance

About this Report

Appendix

Environmental Metrics and Targets
Canadian Solar is a pioneer in delivering innovative renewable energy solutions, propelling solar PV and battery energy storage as the premier choice for achieving global decarbonization goals.
There is widespread consensus that solar PV has become both the cleanest and most affordable source of electricity in most markets. Meanwhile, energy storage plays a crucial role inintegrating solar and other intermittent renewables into the power grid, further expanding the penetration of clean energy sources across global power grids.

In this Section

18

Greenhouse 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

22
26
29
31
33
35
38

18

Canadian Solar 2023 Sustainability Report
Highlights

About Canadian Solar

Environmental Metrics and Targets

Social Responsibility

Responsible Supply Chain

GovernanceAppendix

About This Report

Environmental Metrics and Targets
Average module wattage (W)One of our breakthroughs in solar PV technology was the increase of wafer size from 158.75 mm to
166 mm in 2016. Combined with our innovative half-cell technology, this larger wafer allowed us to
introduce the first crystal-silicon PV module to exceed 400 watts. This not only reduced the costs ofmodule manufacturing, transportation, and installation, but also, more importantly, significantly
reduced the cost of Balance of System (BOS) expenses. At that time, solar PV projects equippedwith our 400+ watts modules had the lowest LCOE. Our move to increase wafer size spurred thedevelopment of even larger wafers, measuring 182 mm and 210 mm, which have further reduced
the LCOE of solar power projects using Canadian Solar modules.
In 2023, we initiated mass production of our N-type TOPCon solar modules and increased our
TOPCon solar cell capacity to 30 GW. Our TOPCon modules have an industry leading module
efficiency rate of 23% and a power rating of up to 715 W. They also offer higher bifaciality and alower temperature coefficient and degradation rate compared to Passivated Emitter Rear Contact(PERC) solar modules. Together, these features further reduce the LCOE and environmental impact
of solar power projects using Canadian Solar TOPCon modules.

593

623

698

541
468
430
318
278

2010

2015

2020

2024E

2028E

Technological innovations have also enabled us to reduce the environmental footprint of our
productions with decreased GHG intensity, energy intensity, water intensity, and waste intensity.
This provides not only better economic viability but also shortened energy and GHG payback time
for solar power plants using our solar modules.
Regarding battery energy storage, we released our utility-scale product SolBank 3.0 in 2023,
increasing the usable energy capacity to 5.0 MWh. This advancement surpassed the 3.7 MWhcapacity of SolBank 2.0 and the 3.0 MWh capacity of SolBank 1.0 introduced in 2022. The
enhancement not only reduces manufacturing costs but also minimizes our environmental
footprint through a more compact and efficient use of space during installation.

Our SolBank products feature a Battery Management System (BMS), equipped with activebalancing and a smart Thermal Management System (TMS), which includes liquid cooling. Activebalancing improves consistency in characteristics and performance, while liquid cooling mitigates
temperature fluctuations across the battery cells. Together, these technologies enhance safety,
reduce capacity degradation and safety hazards, and extend the lifespan of SolBank products, thus
lowering their Levelized Cost of Storage (LCOS).

19

Environmental Metrics and Targets

Canadian Solar 2023 Sustainability Report

Environmental Impacts of Manufacturing

Manufacturing Capacity Expansion Roadmap

We evaluate the environmental impacts of our manufacturing operations using thefollowing framework:

Increasing our solar PV manufacturing capacity
and level of vertical integration over the past
few years has raised our total energy
consumption,
GHG
emissions,water
withdrawal, and waste generation. However,

Production scale and process efficiency. We
are increasing our manufacturing capacity tomeet the growing demand for our solar PV andenergy storage products. While increasing
capacity will consume more materials, energy,
and water, and produce more waste and GHG
emissions, in the long-term, a more efficientmanufacturing line will decrease energy andwater consumption, waste and GHG emissions
per unit produced. When designing ourmanufacturing processes and selecting ourmanufacturing
equipment,
efficiencyinmaterial, energy and water use is an importantconsideration.
Level of vertical integration. Crystalline silicon
PV manufacturing includes the production of
ingots, wafers, cells, and modules. The extent towhich we perform these processes inhousedirectly correlates with our level of vertical
integration. Although we strive to continuously
reduce the environmental footprint of eachmanufacturing process,·the expansion in scale and vertical integrationof our PV manufacturing and battery energy
storage businesses means that our total
environmental
footprint
will
inevitably
increase. Nonetheless, we have established 5year rolling targets to reduce our impact on an
intensity basis.
Product technologies. Product technologies
define our manufacturing processes and,
consequently, environmental footprint. In linewith industry trends, we are expediting ourshift from P-type PERC to N-type TOPCon
technologies. While the latter involves more
complex and resource-intensive manufacturing
processes, the long-term benefits aresubstantial. Higher module efficiency andbifaciality, along with an extended usable
lifespanandreducedperformancedegradation, shortens the energy and GHG
payback timeline, and ensures more power isgenerated during the modules’ lifetime.

ongoing
improvements
intechnology,
manufacturing
processes,
andenergyconservation initiatives will continue to reduce
theenvironmental
impactofourmanufacturing operations on a per-watt basis.

Manufacturing Capacity (GW)

61.0

60.0

57.0
50.0

50.4 50.0

48.4

32.2

55.7

28.0

20.4 20.0 19.8

20.4 21.0

Dec 2022A

Dec 2023A
Ingot

20.4

Wafer

Jun 2024E
Cell

Dec 2024E

Module20

Environmental Metrics and Targets

Canadian Solar 2023 Sustainability Report

Well on track to achieve the goal of powering all
our operations with 100% renewable energy
before 2030
2021

2022

2023

2028

2030

Renewable energy %

23%

29%

33%

83%

100%

Total Electricity Consumption(MWh)1,434,000

1,825,598

3,377,548

We are committed to powering our global
operations with 100% renewable energy by
2030, with an interim target of achieving 83%
by 2028. To realize this, our focus lies on
reducing
electricity
consumption
while
increasing the use of renewables across ouroperations.
A significant portion of our scope 1 and scope
2 carbon emissions (see the subsequent
section for definitions) stem from theelectricity
consumed
duringourmanufacturing operations. Therefore, our top
priority is to reduce our carbon footprint, using
more renewable energy.
Many of our manufacturing facilities arelocated in China, where solar PV energy hasreached grid parity. In 2021, regulations in
China endorsed green electricity trading andPurchase Power Agreements (PPAs) signed
directly between renewable energy producers

and consumers (link). However, the extent ofsuch trading varies across provincial electricity
markets due to differences in market
mechanisms and development. We have been
actively pursuing opportunities to buy green
electricity in the provinces of Jiangsu andZhejiang since 2022, where our manufacturing
operations are predominately located. We remaincommitted to exploring opportunities to source
additional green electricity across all regions
where we operate.
Renewable PPAs, renewable purchases in the
spot markets, and our own rooftop PV
generation are the main strategies we are
employing to achieve our goal of 100%
renewable energy usage. Moreover, thepenetration of renewable energy has been
consistently increasing, taking a greater share of
the power grid. This trend is supplemented byRenewable Energy Certificates (RECs), which,when necessary, assist in accelerating ourprogress towards our decarbonization goals.

Total Electricity Consumption (%)

2022

2023

2024E

Renewable Energy from the Grid

2028E

2030E

Non-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 - 2023

37%

37%

72%

54%

GHG Emissions
Intensity

Manufacturing
Energy Intensity

Manufacturing
Water Intensity

Manufacturing
Waste Intensity

The following sections detail the environmental intensity measurements for our global
manufacturing operations, including solar ingot, wafer, cell, module, auxiliary materials, inverter,and battery energy storage product production. These metrics are determined by averaging theintensity of each manufacturing process and aligning it with the actual production output at eachfacility.

21

Environmental Metrics and Targets

Canadian Solar 2023 Sustainability Report

Greenhouse Gas Emissions

GHG Emissions Covered and Definition of Scopes

We have been actively disclosing ourgreenhouse gas (GHG) emissions since 2021.
In 2023, we adopted the GHG Protocol
Corporate Accounting and Reporting Standard(link), transitioning from ISO14064-1:2018, toenhance the quality of our GHG emissions
measurement and reporting. This strategic
shift aligns with our commitment to meet therequirements set by the International
Sustainability Standards Board (ISSB), Carbon
Disclosure Project (CDP), and Science Based
Targets initiative (SBTi).

We report emissions for all seven kinds ofgreenhouse gases, i.e. carbon dioxide (CO₂),methane(CH₄),
nitrousoxide(N₂O),hydrofluorocarbons (HFCs), perfluorocarbons(PFCs), sulfur hexafluoride (SF₆), and nitrogen
trifluoride (NF₃). The emissions of different
GHGs have been converted to their CO₂
equivalent according to Intergovernmental
Panel on Climate Change (IPCC) Global
Warming Potential (GWP)100a. In 2023, carbon
dioxide was the primary contributing
greenhouse gas, accounting for approximately
98% of our total GHG emissions.

Our
GHG
emissions
metrics
arecomprehensive, covering total emissions acrossscopes 1 and 2, and key categories of scope 3.
We also measure the intensity of scopes 1 and2 emissions related to our manufacturing
operations. We provide carbon emissions at the
product level using the Life Cycle Assessment(LCA) and standards provided by the French
Energy Regulatory Commission (CRE), South
Korea Guidelines for Solar Module Carbon
Emission Assessment and Verification and
Italian Environmental Product Declaration(EPD).

1. Organizational boundaries. We expanded
the scope of our inventory to include our newly
added facilities, such as solar cell, module
auxiliary material, and battery energy storage
facilities. Moreover, we have integrated
Recurrent Energy into our reporting coverage.
2. Reporting boundaries. To align with the
Corporate Value Chain (Scope 3) Accounting
and Reporting Standard (link) and Technical
Guidance for Calculating Scope 3 Emissions(link), we broadened our reporting categories
within scope 3 to include category 9(Downstream Transportation and Distribution),and category 13 (Downstream Leased Assets)emissions.

According to the GHG Protocol, scope 1
emissions are the direct GHG emissions thatoriginate from sources owned or controlled by
a company. Scope 2 emissions are indirect andresult from the consumption of purchased
electricity, steam, heating, and cooling services.
Scope 3 emissions cover a broader range ofindirect emissions, extending to both upstream
anddownstream
activities
withinthecompany's value chain, such as business travel
and employee commuting.

To ensure comparability of data acrossdifferent years, we used the GHG emissions
intensity or carbon intensity

Methodology
In
2023,
we
furtherrefinedthecomprehensiveness of our GHG inventory
reporting through the following initiatives.

(emissions per MWp) as our main reporting
dimension. Both scope 1 and scope 2 emissions
are covered in the GHG emissions intensity
section below.

3. Emission factors. We have updated theemission factors used in our calculations toincorporate the most up-to-date data andguidelines. Specifically, we have adjusted thefuel emission factors for our operations inThailand and Vietnam, and for our watersupply and transportation according to the2023 U.K. Environmental Agency’s updated
data.³ We have also adjusted the electricity
emission factor for our operations in Thailand
based on the 2023 Thai Government Ministryof Energy’s updated data.⁴ As a result of thesechanges, we also recalculated the carbon
emissions of our Thailand facilities for the year2022.
4. Calculation methods. In line with the GHG
Protocol Scope 2 Guidance (link), we calculated
our scope 2 emissions using both locationbased and market-based methods. The latterreflects our purchases of green electricity inspot markets.

GHG Emissions Intensity (tCO₂eq/MW)
154
126

126

123

126

-22% by 2028
or 21 tCO₂e/MWp lower

123
97

90
76
Ingot
Wafer
Cell
Module

2017

2018

2019

2020

2021

2022

2023

2024
Goal

2028
Goal

3 UK Government (2023). Greenhouse gas reporting: conversion factors 2023. [online] GOV.UK. Available at:https://www.gov.uk/government/publications/greenhouse-gas-reporting-conversion-factors-2023.
4 www.eppo.go.th. (n.d.). CO₂ Statistic. [online] Available at: https://www.eppo.go.th/index.php/en/en-energystatistics/CO₂-statistic.

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Environmental Metrics and Targets

Canadian Solar 2023 Sustainability Report

In 2023, our GHG emissions intensity was
reduced to 97 tCO₂e /MWp, which is asignificant improvement over our target of 115
tCO₂e /MWp. This accomplishment reflects a
reduction from 2022's level of 123 tCO₂e/MWp
and was primarily driven by a 29% and 21%
decrease in carbon intensity from ingot andwafer production processes respectively
compared to 2023. These reductions were aresult of the optimization of our production
processes,
leveraging
technologicaladvancements that facilitated the productionof thinner wafers, and our ongoing energy
conservation efforts, such as the introductionof a new heat recovery system for air
compressors.

The location-based approach reflects theaverage emissions intensity of grids whereenergy consumption occurs (primarily using
grid-average emission factor data). The
market-based approach uses emission factors
from contractual instruments, which include
any contract between two parties for the saleand purchase of energy. This includes
contracts with bundled attribute claims related
to energy generation, and unbundled attributeclaims, such as power purchase agreements.
In 2023, our total scope 1 direct GHG
emissions were 54,982 tCO₂e. Our scope 2
emissions calculated using both location-based
and market-based approaches were 2,274,291
tCO₂e and 2,260,125 tCO₂e respectively. For adetailed breakdown of these emissions, pleaserefer to the charts below.

Following the GHG Protocol, we reported our2023 scope 2 emissions data using marketbased and location-based approaches.

2023
Scope

Category

Scope 1

GHG emissions(tCO₂e)% of total

GHG emissions(tCO₂e)% of total

Stationary
Combustion

1,365

2%

8,483

11%

Mobile Combustion

611

1%

538

1%

Process emissions

85

0%

29

0%

Fugitive emissions

52,921

96%

66,59788%

54,982100%

75,647100%

Imported electricity

2,262,211

99%

1,204,016

99%

Imported stream

12,0801%

11,591

1%

2,274,291

100%

1,215,607

100%

Imported electricity

2,248,045

99%

1,201,782

99%

Imported stream

12,0801%

11,5911%

2,260,125

100%

1,213,373

100%

Total
Scope 2
(Location-based)

Total
Scope 2
(Market-based)

2022

Total

GHG emissions from stationary combustion decreased to 1,365 tCO₂e in 2023 from 8,843 tCO₂e in
2022 due to lower natural gas consumption in our solar cell manufacturing facilities.

The following table presents our scope 3 emissions in 2023 and 2022:

Scope 3

2023

2022

Category

Description

GHG
emissions(tCO₂e)Category 1.
Purchased
goods andservices

GHG emissions from tap water
purchased and the use of services,such as construction and catering.

6,661

1%

4,264

2%

Category 4.
Upstreamtransportationand distribution

GHG emissions from two parts, one is
the transportation of raw materials to
produce ingot, wafer, cell, and module,
including trucks, planes, and ships, theother is the transportation of soldproducts (i.e. modules, inverters andstorage tanks), including the part weare responsible for according to freightterms (e.g. DDP, DAP, FOB, CIF.)

604,71875%

251,91398%

Category 9.
Downstream
transportationand distribution

GHG emissions from transporting
modules to our customers, including
the part we are not responsible foraccording to freight terms (e.g. DDP,
DAP, FOB, CIF.)

111,649

14%

Not
countedNot
countedCategory 13:
Downstream
leased assets

GHG emissions from the scope 1 andscope 2 emissions of lessees.

80,334

10%

Not
countedNot
counted803,362100%

256,177

100%

Total

In 2023, our aggregate GHG emissions
including scope 1, 2, and 3, were 3,132,635
tCO₂e, calculated using the location-based
approach, and 3,118,469 tCO₂e, using themarket-based approach. This represents a
102% increase from our 2022 emission levels.
The main drivers behind this increase were theaddition of new solar cell production sites anda significant increase in production output
from our existing factories, particularly those

% of
total

GHG
emissions(tCO₂e)

% of
total

engaged in producing solar ingots, cells, andmodules. Nonetheless, the increase waspartially offset by our energy conservation
measures, which led to a reduction of ourscope 1 emissions in 2023 relative to 2022.
GHG emissions from stationary combustion
decreased to 1,365 tCO₂e in 2023 from 8,843
tCO₂e in 2022, due to the decrease in natural
gas consumption in our cell facilities.

23

Environmental Metrics and Targets

Canadian Solar 2023 Sustainability Report

A comprehensive comparison between our 2022 and 2023 GHG emissions, categorized by theirrespective sub-scopes, can be found in the following charts:

Carbon Emissions in 2022

Carbon Emissions in 2023

0.1% Inverter 0.1% e-Storage

0.1% Inverter

Ingot

32%

1%
2%
5%

Cell
Module

30%

27%

6%

Inverter

Cell
ModuleWafer

33%

Auxiliary Materials
e-STORAGE

Solar System Life Cycle Analysis

Ingot

3%

Wafer

30%

The installed capacity of each plant was 200 MWp.
Single axis trackers were used.
The projects are expected to produce electricity for 30 years before decommissioning.

31%

Auxiliary Materials
e-STORAGE
Inverter

Combined, the charts provide a detailed breakdown of our GHG emissions by manufacturing
process and scope. Notably, our ingot manufacturing activities contributed more to our overall
carbon emissions in 2023 than in 2022, primarily due to increased production of monocrystalline
ingots. Furthermore, in 2023, the total GHG emissions from our e-STORAGE manufacturing
operations increased to 32,290 tCO₂e from 2,207 tCO₂e in 2022, raising their share of emissions
from 0.1% to 1%, due to the expansion of our battery energy storage product production.

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

Project location

Texas, US

Module type

CS7N-660MB-AG

CS7N-660MB-AG

CS7N-715TB-AG

1,217

1,217

1,112

tCO₂/MW

243,400

243,400

222,462

tCO₂

Carbon footprint - PV
Project lifetime
Total production

Cote d’Azur, France

30
12,554,054

10,139,812

Unit

Years
10,522,810

MWh

GHG Potential Emissions Avoided
Gross emissions avoided

222,272

22,361

23,206tCO₂/year

Net avoided emissions

214,159

14,24815,791

tCO₂/year

Net avoided emissions(lifetime)

6,424,768

427,441

473,730

tCO₂

GHG payback time

1.1

10.9

9.6

Years

PV power generation is a renewable energy technology, known for its low-carbon nature.
Unlike fossil fuel-based power plants, PV systems generate electricity without combustion or
GHG emissions. This makes PV power an environmentally friendly option, contributing to the
reduction of carbon emissions and the mitigation of climate change. To demonstrate this, we
calculated net GHG emission avoidance and the GHG payback time for two utility scale solar
projects in the U.S. and France.

The Texas solar plant achieves net avoided emissions of 214,159 tCO₂e per year, amounting
to a total of 6,424,768 tCO₂e over its operational lifetime. With a GHG payback time of
approximately 1.1 years, this performance is representative of many global markets. Thissuggests that solar power plants equipped with Canadian Solar modules will generate
emission-free electricity in most markets for the remaining 28.9 years of their operational
lifespan.

Net GHG emission avoidance is a comprehensive metric used to gauge the potential oftechnology in mitigating global warming. This calculation considers the GHG emissions
from the entire life cycle of the system, including manufacturing solar modules,transportation, construction, operation, and decommissioning.
The GHG payback time represents the duration required for the surplus GHG emissions
linked to the system to be neutralized by its net GHG emission avoidance.

In France, the GHG payback period is 9.6 years for our TOPBiHiKu7 modules and 10.9 years
for BiHiKu7 modules. Compared to Texas, this extension is primarily due to France's
significantly lower grid carbon emission rate of 77 kgCO₂e/MWh (as per PVsyst 7.4, link)compared to Texas’ 542 kgCO₂e/MWh (the U.S. Environmental Protection Agency (EPA), link)
and France’s higher reliance on alternative energy sources, especially nuclear power. Thatsaid, using our TOPBiHiKu7 modules instead of the BiHiKu7 modules increases the annual
net emissions avoided by 11%, reducing the GHG payback time by over a year, from 10.9
years to 9.6 years.

We factored the following in our analysis:
Solar power plants were equipped with either Canadian Solar’s CS7N-660MB-AG or CS7N715TB-AG.

24

Environmental Metrics and Targets

Canadian Solar 2023 Sustainability Report

Module Carbon Footprint Improvement

GHG Emissions at Recurrent Energy

We offer competitive, low-carbon solar
products to our customers. Since 2015, wehave maintained the Evaluation Carbone
Simplifiée (ECS) certification, adhering to therequirements set by the French Energy
Regulation Committee (CRE) solar tender, as
well as ISO14040 and ISO14044 Life Cycle
Assessment standards. In 2023, we updated
our certificate in line with the newest
Multiannual Energy Programming method(link). The carbon emissions of our monoPERC solar modules, which are manufactured
using 182 mm and 210 mm silicon wafers, arerated at 400 kgCO₂e/kWp, while our N-type
TOPCon solar modules are rated at 450
kgCO₂e/kWp. In both cases, the carbon
emissions of our solar modules are lower thanindustry averages.

Recurrent Energy plays a critical role in climate
risk mitigation and provides climate-related
opportunities for our customers, business, andthe communities where we operate. Our
mission is to deliver clean, reliable, andaffordable power to the world. We also takeour own responsibility for climate risk
mitigation, which includes addressing GHG
emissions in our operations and supply chain.

encompassing our global offices andoperations and maintenance (O&M) teams.
The primary sources of emissions include theconsumption of fuels (i.e. diesel, ethanol, andgasoline), electricity and water and businesstravel. Combustible mobile travel stands out as
the main source of direct emissions for our
O&M teams, accounting for 86% of Recurrent
Energy’s total emissions.

Recurrent Energy is currently developing acomprehensive inventory framework for our
scopes 1, 2, and 3 emissions, with an
anticipated completion date set for 2024. Thisinitiative is a strategic component of ourefforts to manage operational emissions more
effectively and to further our commitment todriving the energy transition.

We will continue to explore opportunities toreduce our operational emissions throughvarious initiatives, including procuring clean
electricity, implementing energy efficiency
measures such as LED lighting retrofits, andoptimizing our shipping routes. Additionally,
we plan to engage with leading industry
groups and frameworks that provide
comprehensive guidance on managing andreducing GHG emissions, especially for scope 3
emissions.

In 2023, our 210 mm solar module became
the first from outside of South Korea to earn

the photovoltaic module carbon emission
verification certificate, issued by the South
Korea New & Renewable Energy Center(KNREC) (link). This assessment aligns with the
Guidelines for Solar Module Carbon Emission
Assessment and Verification under Article 27(1)of the Act on the Promotion of theDevelopment, Use and Diffusion of New andRenewable Energy and Article 27(3) of the
Enforcement Decree of the Act. Furthermore,
we have obtained the Italian Environmental
Product Declaration (EPD) certification (link).
Through assessing the climate change, ozone
depletion,water
acidification,andeutrophication,
photochemicalozone
formation, and the consumption of abiotic
resources and water associated with a solar
system, the EPD certification serves as a vital
tool for evaluating solar power plants’ Returnon Energy. This assessment aligns with theISO14040 and ISO14044 Life Cycle Assessment
standards, and ISO14025 and EN15804.

In 2023, Recurrent Energy's total GHG
emissions were approximately 2,270 tCO₂e,25

Environmental Metrics and Targets

Canadian Solar 2023 Sustainability Report

Energy Intensity

Air Emissions
We strictly comply with the environmental
laws and regulations in each jurisdiction
where we operate. Our commitment extends
beyond mere compliance; we proactively work
to minimize the environmental impact of air
emissions from our manufacturing processes.
To achieve this, we regularly monitor andassess all relevant emissions. We employ arange of emission control techniques,
including exhaust management, filtration
systems, adsorption processes, and catalyticoxidation, to effectively manage our emissions.
A detailed account of our air emissions isprovided below.

To track energy intensity across our solar
ingot, wafer, cell, and module manufacturing
operations, we employ production-weighted
average calculations across all our production

sites. This method provides a representative
overview of the energy intensity across ourglobal manufacturing operations.

Energy Intensity (MWh/MW)

Air emissions⁵(global, metric tons)

2017

Nitrogen oxides (NOₓ)

28.1

37.4

38.2

33.9

13.6

18.0

16.7

Sulfur oxides (SOₓ)

0.1

0.2

0.1

0.1

0.1

0.1

0.4

Fine dust (PM10)

3.7

7.4

9.1

14.8

15.7

15.5

19.7

Hazardous air pollutants (HAP)

0.2

0.9

0.6

6.6

10.1

12.4

18.3

Wafer

Volatile organic compounds (VOCs)

12.2

4.1

16.4

13.7

17.5

30.6

29.9

ModulePersistent organic pollutants (POP)

0

0

0

0

0

0

0

Other standard air emissions⁶

3.4

23.2

16.2

23.3

30.2

39.2

20.2

2018

2019

2020

2021

2022

2023

224
184

Increases in production capacity have resulted
in an increase in particulate matter of 10 µm
or less in diameter (PM10) and hazardous air
pollutants (HAP), among other air emissions.
However, over the past few years, we haveadopted various initiatives to counteract theseeffects. First, our transition from producing
polycrystalline to monocrystalline solar
modules has decreased the demand for nitricacid in our cell production processes.
Additionally, beginning in the second half of2023, we introduced a mixed solvent as analternative to both nitric and hydrofluoric
acids.
These
strategicchangeshavesignificantly reduced NOₓ emissions at our celland ingot facilities in 2023, despite theincreaseinourproduction
capacity.
Furthermore, because ammonia makes up the
majority of standard air emissions, increasing
the proportion of sulfuric acid in our watertanks has improved the absorption ofammonia, thereby decreasing other standard
air emissions.

185

185

183

-22% by 2028
or 31 MWh/MW

171
141

132
110
Ingot
Cell

2017

2018

2019

2020

2021

We achieved an 18% or 30 MWh/MW yearover-year (yoy) reduction in energy intensity in
2023 compared to 2022. Our actual energy
intensity for 2023 was 141 MWh/MW,
representing a significant improvement over
our initial target of 156 MWh/MW. Energy
efficiency has improved due to four main
factors. Firstly, there was a 13% yoy reduction
in energy intensity at our ingot manufacturing
process – a result of significant process
improvements.
Secondly,
technologicaladvancements, particularly the adoption ofthinner wafers reduced the silicon content per

2022

2023

2024
Goal

2028
Goal

watt. Thirdly, enhancements to our production
line's output efficiency have reduced energy
consumption per watt. Finally, the execution ofenergy savings projects played a significant
role. In 2023, we implemented 69 energysaving projects, including a new heat recovery
system for air compressors, production
equipment, and an intelligent lighting control
system. These projects contributed to a totalenergy savings of 52 GWh in 2023, including 40
GWh of electricity, 10,650 tons of steam, and280,000 nm³ of gas.

5 Certain historical figures contain measurement anomalies that we cannot revise given the amount of time that has elapsed. Consider
our 2020-2023 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.
6 From 2020, ammonia NH₃ emissions have been included in “other standard air emissions”, and we began monitoring HAP emissions in
our cell manufacturing operations

26

Canadian Solar 2023 Sustainability Report

Environmental Metrics and Targets

Case Study: Cell Sites
Heat recovering system to reduce steam and electricity consumption
Steam/electricity saving measures:
Saving steam in winter and electricity in summer and autumn by connecting the hot
exhaust system from our production workshop to the air-conditioning system Make-up
Air Unit (MAU) to reuse the heat from the main heat generators in the production area.

Fresh
Air

Mezzanine
OutsideWorkshop
Hot Air Exhaustfrom Workshop

MAU

Project achievements:
Saving up to 2.82 GWh of electricity and 5,360 tons of steam in 2023

To further lower our energy intensity and achieve our 2028 goal, we plan to continue enhancing
product output and efficiency, implementing energy conservation initiatives, promoting thecircular use of energy, and refining our energy management systems. As of 2023, six of ourmanufacturing sites in China have received the Green Factory Award from local government
authorities and seven sites have obtained ISO50001 energy management certification. We plan tohave two more sites certified under ISO50001 in 2024.
e-STORAGE, our utility-scale battery energy storage product subsidiary which provides customers
with competitive turnkey, integrated, utility-scale battery energy storage solutions, consumed a
total of 9,434 MWh of energy at its production sites in 2023. e-STORAGE’s total energy
consumption accounted for less than 1% of Canadian Solar’s total energy consumption in 2023.
Nevertheless, we remain committed to driving energy conservation through energy saving
projects at e-STORAGE, such as reducing the volume of charged electricity during the testingprocess, using recovered energy, and improving the efficiency of chillers and air compressors.

300 MW /561 MWh, Slate Solar and Battery Energy Storage Plant, U.S.

27

Environmental Metrics and Targets

Canadian Solar 2023 Sustainability Report

Energy Consumption Breakdown
Energy Consumption Breakdown by Manufacturing
Process (GJ)Solare-STORAGE

Energy Consumption Breakdown by Resources⁷
2019

2020

2021

2022

2023

2023

GlobalIngot

1,153,399

4,268,095

Wafer

555,127

837,425

Total energy
consumption
(GJ)

Cell

3,024,054

5,074,866

of which:

Module1,345,103

1,759,742

Gas

11,29524,02040,24959,001

192,332

178,836

24,057

Auxiliary Materials

148,096

251,001

Diesel

2,536

2,455

2,162

3,164

4,321

3,890

4,287

SolBank battery energy storage products/

33,961

Gasoline

3,737

700

857

2,535

1,786

2,580

3,109

Total

6,225,779

12,225,091

Steam

133,523

136,874

166,942

165,157

112,433

91,820113,323

Total absolute energy consumption increasedin each production process due to thesignificant increase in our production output
by 417% for ingots, 82% for wafers, 53% forcells and 48% for modules in 2023 compared
to 2022.
In 2023, the energy consumption of our eSTORAGE business was 33,961 GJ, which
accounted for less than 1% of our total
manufacturing energy consumption.

The total energy consumption for 2023 also
includes 14,805 GJ of energy used by our IT
infrastructures across 19 manufacturing sites.
To reduce the energy consumption of our IT
infrastructures, we have consolidated our data
storage rooms and transitioned to a more
intelligent management of our ventilation
systems. Our air conditioning systems can now
adjust their output according to external
temperatures, thereby preventing energy
waste. We have implemented two significant
energy-saving projects, which have resulted ina total energy savings of 2,943 GJ for 2023.

Gridelectricity
Self-generated
solar PV
electricity

2017

2018

2022

2,002,393 2,701,707 3,757,188 4,286,130

1,800,956 2,474,601 3,484,479 3,972,449

50,346

63,05662,500Total energy consumption increased in 2023
compared to 2022, primarily due to the rise inelectricity consumption resulting from asignificant increase in production output.
Despite this increase, we remain well on track
to meet our 5-year rolling target for reducing

83,824

5,473,504 6,225,779 12,225,091

5,078,445 5,816,234 11,926,271

84,187

132,419

154,044

the energy intensity of our manufacturing
processes. Furthermore, we achieved an 87%
decrease in gas consumption due to theimplementation of an improved wastewater
treatment process at our solar cell factory inThailand.

7 The numbers reported in this table may differ slightly from previous sustainability report editions. We have revised historicalcalculations for accuracy. Prior report estimations should no longer be considered. Self-generated PV electricity share has been revised inaccordance with the Sustainability Accounting Standard Board (SASB).

28

Environmental Metrics and Targets

Canadian Solar 2023 Sustainability Report

Water Intensity

Case Study: Wafer Workshops

Water Intensity (t/MW)

Improvements in the wafer process parameter setting to reduce water consumption

2,249-15% by 2028
or 96t/MW lower

1,508
1,302

1,248

Water conservation measures:
Continually optimizing the parameters of our wafer cleaning machines bystandardizing the water overflow rate of each equipment.

Pure Water
1,059
749

636

635

540

Ingot
Wafer

Sink
11

OverflowSink
10

Overflow

Sink
9

Cell

8L/minModule

2017

2018

2019

2020

2021

2022

We achieved a yoy reduction of 113 t/MW or
15% in water intensity in 2023 compared to2022, successfully meeting our 2023 target of
14%. The reduction was primarily driven by
the continued deployment of thinner wafers.
Efforts to increase product efficiency and thepromotion of water-saving initiatives havealso contributed to this decrease.
In absolute terms, we saved 443,000 tons ofwater in 2023. Through our water
conservation and recycling programs, inconjunction with improvements in module
efficiency
andproduction
yield,
we
successfully achieved a 72% reduction in

2023

2024
Goal

Inserter
Sink
Rinsing
Sink 1

Rinsing
Sink 2

2028
Goal

manufacturing water intensity between 2017and 2023. Moving forward, from 2024 to 2028,
we plan to further reduce water consumption
intensity by increasing our manufacturing andproduct efficiency, as well as implementing
additional water-saving measures, including
recycling wastewater with a small amount ofchemicals from our TOPCon solar cellmanufacturing process.
e-STORAGE production sites consumed
approximately 26,000 tons of water in 2023.
Approximately 700 tons of this water were
fully recycled for use in the containerizedenergy storage sprinkler system testing.

Overflow Tank

Project achievements:
Save up to 90,000 tons water per year.

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 (approximately 1.25 tons). The average
U.S. residential solar system is around 7 kW. By these metrics, it takes the same amountof 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 water used is lower for most otherregions, although residential solar systems are also smaller outside of North America (35 kW).

29

Environmental Metrics and Targets

Canadian Solar 2023 Sustainability Report

Water Risk Management Strategy
Water conservation remains a top priority
within our sustainability initiatives. We aim tocontinuously
improveourproduction
utilization rates while reducing water
withdrawal
fromourmanufacturing
operations. We collaborate with water-saving
experts to integrate water-saving technologies
into the design of our production processes
from the outset. Our goal is to maximize water
utilization rates by considering the water
quality requirements for each process andefficiently recycling water to maximize its use.
Consistent with previous years, in 2023, 100%of our water withdrawals were sourced frommunicipal freshwater supplies. Whereas thedata on water withdrawals and discharges
presented in the table below are based on
invoices from water and wastewater utilities,
the quantities of recycled water are
determined through direct meter readings at
our facilities.

Water withdrawals in high orextremely high baseline water stresslocations (thousands m³)

Solar

e-STORAGE
2020

2021

2022

2023

Total water withdrawals (thousand m³)

8,418

9,027

8,550

14,857

Withdrawals within high baselinewater stress areas (%)

45%

34%

28%

34%

Total water consumption (thousand m³)

3,634

2,653

2,170

5,544

Consumptions within high baselinewater stress areas (%)

58%

32%

34%

42%

Total water recycling (thousand m³)

2,480

1,930

1,972

4,884

Water recycling rate (%)

30%

21%

23%

33%

In 2023, we experienced an increase in total
water withdrawals, primarily due to thesubstantial growth in our production output at
our ingot and cell manufacturing facilities.
However, despite this increase, water intensity
decreased by 113 t/MW in 2023 compared to2022.
Our total water recycling rate improved to 33%
in 2023 from 23% in 2022 thanks to theimplementation of water recycling projects at
our solar cell and ingot manufacturing
facilities. For 2024, we expect that our total
water recycling rate will exceed 35%. We
remain committed to executing our 5-year
rolling targets, which involve reducing

manufacturing water intensities through theimplementation of additional water recycling
projects and conservation measures.
In recent years, we have strategically relocatedour manufacturing operations to areas withlower Baseline Water Stress (BWS), as
categorized by the World Resources Institute(WRI) Water Risk Atlas tool, Aqueduct. This
move has significantly mitigated our water
access risk. Our strategy involves transitioning
our manufacturing sites from regions withhigh BWS to those with moderate or lower
BWS levels. A detailed breakdown of ouroperations’ water withdrawals from high BWS
areas is shown below.

2017

2021

2022

2023

Module337 (6%)457 (5%)649 (7%)787 (5%)

Cell

1,578 (28%)

554 (6%)

0

2,273
(15%)

Wafer

1,429 (26%) 1,181 (13%)

975 (11%)936 6%)

Ingot

217 (4%)790 (9%)667 (8%)981 (6%)

Auxiliary materials-

118 (1%)103 (1%)104 (1%)

SolBank battery energy storage
products---

30 (0.2%)

Total

64%

34%

27%

34%

Overall, the proportion of our total water
withdrawal from areas categorized as
extremely high or high BWS decreased to 34%
in 2023 from 64% in 2017. Between 2022 and2023, the share of production in regions withhigh or extremely high BWS increased due to a
newly established solar cell manufacturing site
in an area with high BWS. Moving forward, toreduce potential water supply risks, we willcontinue to conduct Environmental Impact
Assessments (EIAs) for all new manufacturing
sites prior to construction. This includes
developing a detailed water balance chart andconducting an in-depth review of water stressand freshwater resources.

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

63%
52%
45%
34%

34%
28%

2017

2018

2019

2020

2021

2022

2023

30

Environmental Metrics and Targets

Canadian Solar 2023 Sustainability Report

Waste Intensity

Water Pollutants and Effluents
Our goal is to ensure a secure, reliable, andenvironmentally responsible water supply forboth our operations and the local communities
impacted by our activities. We strictly adhere
to all relevant local and international laws andregulations concerning wastewater pollutants.
By conducing comprehensive assessments ofour potential impact on local water resources,
we develop strategies to minimize our
influence on these resources.

processes according to our internal control
criteria before sending it to local wastewater
treatment facilities for additional filtering. This
process continues until final water discharge
requirements are met. The table below
provides a detailed breakdown of thewastewaterpollutants
andeffluents
generated during our production processes,
along with the Chemical Oxygen Demand(COD), which is a key measure for assessing
wastewater quality.

Waste Intensity (t/MW)
16.5

16.7

-20% by 2028
or 1.5 t/MW lower

15.1
13.1
10.6

9.1

7.6

7.3

6.1

Ingot
Wafer
Cell

We treat wastewater from our production

Module2017

Wastewater pollutants / measure(global, metric tons)

2021

2022

2023

Fluoride

21.1

21.0

33.7

Suspended Solids (SS)

186.6

146.9

214.1

Ammonia Nitrogen

23.6

25.1

39.5

Total Nitrogen

65.2

57.6

91.7

Chemical Oxygen Demand (COD)

288.3

283.8

380.3

2018

2019

2020

2021

2022

In 2023, our waste intensity decreased by 16%
to 7.6 t/MW, down from 9.1 t/MW in 2022,
beating our 2023 target of 8.7 t/MW. This
reduction was primarily driven by the
deployment
of
new,
more
efficient
manufacturing
equipment,
andtheimplementation of ambitious recycling andwaste reduction management programs.
Our
e-STORAGE
business
generated
approximately 1,200 tons of waste in 2023, over

2023

2024
Goal

2028
Goal

95% of which was successfully recycled. Our
key strategies involve reusing chemical
containers and enhancing our manufacturing
processes to minimize the use of cleaning
solvents. In 2024, we plan to substitutewooden pallets with plastic alternatives toensure that all packaging materials from our eSTORAGE operations can be either recycled orreused. This initiative aligns with our 100%
recycling and reuse target.

Between 2022 and 2023, the increased generation of the pollutants mentioned above resulted
from the significant rise in our production output, as discussed earlier.

Case Study: Thailand Cell Manufacturing Site
Sludge reuse to divert from landfill in our Thailand cell

BeforeAfter

Sludge reuse measures:
Collaborated with local regulatory bodies to assess and test the composition ofsludge for potential reuse. We successfully partnered with a vendor to utilize
sludge as a component that can be mixed with soil to enhance soil quality.

Project achievements:
Reduce the volume of our sludge landfill to 3,595 tons in 2023 from 19,076 tons
in 2022 – an 81% reduction.

Landfill

CompostFermentation Tank

Made into Soil
Conditioners

Soil Improvement
Application

31

Environmental Metrics and Targets

Canadian Solar 2023 Sustainability Report

Disposed Waste Intensity

Waste Types and Disposal

Compared to total waste intensity, disposed
waste intensity, which includes landfill andincinerated waste, provides a more insightful
measure of our progress towards moresustainable solar manufacturing. In 2023, weachieved an 85% reduction in disposed waste

Waste by Type and Disposal (kt)
199

134
82

98

93

intensity as compared to 2017. Our disposed
non-hazardous waste decreased to 15,000
tons in 2023 from 24,000 tons in 2022. Of thewaste disposed in 2023, 88% was landfilledand 12% was incinerated.

103
Disposed hazardous waste

49

Disposed Waste Intensity (t/MW)

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 recycled or reused
waste increased to over 88% in 2023 from 81%
in 2022. This improvement was mainly due to achange in the waste treatment method at ourThailandfactory,where
wereusedapproximately 78% of sludge, replacing theprevious landfill treatment. Despite an increasein our total waste generation in 2023 due tohigher production output, we successfully
reduced both our waste intensity

2023

6.5

4.7

and total disposed waste to 23,400 tons from27,100 tons in 2022.
In 2023, we achieved 100% recycling of our
packing materials, totaling 39,950 tons. This
success can be attributed to the packing
materials
recycling
projects
atourmanufacturing sites such as replacing wooden
pallets with steel to ensure reuse, and ourpartnership with vendors to reuse raw
material containers.

3.9
3.1
2.2

2.0

Ingot

1.0

0.8

0.7

2023

2024
Goal

2028
Goal

Wafer
Cell
Module

2017

2018

2019

2020

2021

2022

32

Environmental Metrics and Targets

Canadian Solar 2023 Sustainability Report

Product End-of-Life Management and Recycling
Canadian Solar actively promotes the recycling and reuse of end-of-life products.

Case Study: Planning for the Future: Bayou Galion
Waste Management and Decommissioning

Recurrent Energy develops and builds energy
projects that are designed to have a functional
lifespan of 30 to 40 years. When a project
reaches the end of its operational life, it will be
decommissioned,
and
we
expecttheequipment to be recycled where possible.
Recycling of PV panels and battery energy
storage components is complex, and while
new innovations are being developed, thetechnology remains difficult and expensive totest. We prioritize quality in our material
selection process; however, occasionally there
are PV panels and equipment modules thatneed to be replaced due to wear or damage.
After we replace the necessary components,
we utilize the replaced units to test recycling
options before any of our large-scale projects
undergo decommissioning.

an agreement with another partner to recycle
solar modules at the end of their life cycle.

As a solar module provider, CSI Solarcollaborates with qualified local service
suppliers to recycle and reuse end-of-life
products.

In Australia, we engage the services of local
recycling companies to recycle solar modules.
In 2023, these efforts helped recycle 1,353
pieces or 0.4 MW of solar modules.

With a projected lifespan of at least 40 years, the Bayou Galion project may undergo
repowering or full decommissioning upon reaching the end-of-life stage. Therefore, ourDecommissioning and Site Restoration Plan delineates two key processes:
decommissioning and site restoration. Decommissioning involves the removal of all
facility components, both above and below ground, as well as management of excessmaterials and waste. To ensure maximum environmental sustainability, we will
collaborate closely with manufacturers, contractors, third-party waste firms, and otherentities to maximize the reuse, recycling, and salvaging of materials.

In the U.S., we began collaborating with acertified recycling service provider in 2023,
successfully recycling 5,915 pieces or 1.65 MWof solar modules. Currently, we are negotiating

To summarize, in 2023, 22,980 pieces or 5 MWof our modules were repaired and 7,978
pieces or 2.2 MW were recycled acrossEurope, the U.S., and Australia.

Site restoration aims to restore the land to its pre-construction condition. Approximately
494 acres of land will require grading, decompaction, and re-seeding with native
vegetation. Recurrent Energy is committed to restoring the local ecosystem andensuring the long-term sustainability of the area.

In Europe, since 2014, our solar PV modules
fully complied with the Waste of Electric andElectronic
Equipment(WEEE)
European
Directive, which governs the proper disposalof solar modules in the EU. We closelycollaborate with recycling service providers,
including PV CYCLE in Italy (link), Take-e-way
in Germany (link) and Ecoasimelec in Spain(link), to ensure strict adherence to all WEEE
obligations and that appropriate market
import actions are followed. In 2023, ourqualified partners repaired approximately
22,980 pieces or 4.56 MW of Canadian Solar
modules for reuse, and 710 pieces or 0.14 MW
for recycling.

Did you know?
Typically, there are 5 layers in a crystalline silicon PV module: a front cover of 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 frames are used
to improve mechanical resistance 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.

Bayou Galion is a 127 MWdc PV solar generation facility in Morehouse Parish, Louisiana,that began construction in 2023. Spanning approximately 987 acres of agricultural land,
the project requires a comprehensive strategy for lifecycle waste management,
decommissioning, and site restoration. To address this, Recurrent Energy developed a
Recycling Plan and Decommissioning and Site Restoration Plan for Bayou Galion. By
integrating end-of-life considerations for the side during the development phase, thisplan reflects Recurrent Energy’s commitment to responsible renewable energy
development.
The plan outlines Recurrent Energy’s approach to waste management during both theconstruction and operational phases of the project. The plan focuses on reducing,reusing, and recycling waste materials and segregating waste materials to the greatest
extent possible. If waste materials cannot be reduced, reused, or recycled, Recurrent
Energy is committed to ensuring their proper disposal in line with local regulations.

Moving forward, Recurrent Energy intends to adopt the Bayou Galion's recycling,
decommissioning, and site restoration plans as a model for standardizing waste
management processes across all projects. This systematic approach ensures consistentadherence to environmental standards and reinforces our commitment to responsibleenergy development and community protection.

33

Canadian Solar 2023 Sustainability Report

Environmental Metrics and Targets

Research & Development Roadmap
We invest in technological innovations to maintain our competitive edge and decarbonize ouroperations.

High Efficiency and Wattage Products

Innovation
Collaboration
Responsibility

Long Life and Low Degradation Products
Specialty Products

5. We are developing fluoride-free modules
that are easy to recycle, with the aim ofachieving an over 95% solar module recyclingrate.
We are also developing and manufacturing
battery energy storage and power electronic
products, including an energy storage Power
Conversion System (PCS) and high-power solar

inverters. These products are characterized bytheir high energy density and reliability, with amanufacturing process that is significantly
less energy-intensive compared to that ofsolar module production. They play a pivotal
role in reducing the LCOE of solar PV systems
and in facilitating a greater integration ofrenewable energy sources into the global
power grids.

Green and Low Carbon Footprint Products
Open Research and Cooperation

Our solar technology roadmap and its expected contributions to our environmental metrics are
outlined below.
1. We initiated mass production of N-type
TOPCon modules in 2023. Through anticipatedenhancements in solar cell efficiency, we
project a rise in the power output of our
TOPCon modules to 745 W by 2028, up from
715 W in 2023. Increases in cell efficiency andmodule power output, coupled with our
production scale will likely reduce the energy
and water intensities of our TOPCon products.
2. We provide a 30-year power warranty for
our N-type solar modules and guarantee a
power degradation of less than 1% in the firstyear and less than 0.4% per year thereafter.
We have also developed solar modules with anextended lifetime of up to 40 years. With alonger use life and better performance, we
expect these modules to generate more
electricity over their lifetime, thus lowering
GHG emissions per kWh of electricity
generated.

3. In 2022, we introduced solar modules withsteel frames, which resulted in a 5% reduction
in module energy intensity compared to thestandard aluminum-framed solar modules.
Building on this progress, in 2024, we plan torelease glass fiber reinforced composite (GFRC)
framed solar modules. These modules are not
only lighter and more durable than aluminumframed modules, but also offer a 4% reduction
in energy intensity, equating to 60 tCO₂e/MW.
4. A smaller diameter of diamond wires helps
reduce silicon powder waste during solar
wafer slicing process and can improvepolysilicon utilization rate. We are developing
processes to produce thinner wafers with finer
diamond wires. Our plan is to reduce wafer
thickness from 130 um to 120 um, decrease
the diamond wire diameter from 30 um to 24
um, and cut polysilicon consumption by 10% in
2024 compared to 2023.

Jiaxing Research Center, China

34

Canadian Solar 2023 Sustainability Report

Environmental Metrics and Targets

Environmental Stewardship in Project Development and Operations and Maintenance (O&M)
Recurrent Energy’s global development of solar and battery energy storage
projects significantly enhances environmental sustainability and social progress.
To date, we have developed, built, and commissioned over 10 GW of solar
projects and over 3 GWh of battery energy storage globally, generating 78,000
MWh of clean energy. This is equivalent to offsetting 41 million metric tons ofCO₂, or providing annual power for around 2.5 million homes. We acknowledge the environmental,
ecological, and biological concerns that may arise from our operations and maintenance (O&M)
activities, such as visual impact, habitat disruption, noise, and waste. We are committed tobiodiversity preservation and are implementing comprehensive strategies to mitigate thesepotential impacts while advancing our clean energy initiatives.

Project Execution Plan (Environmental and Biological Items)

Project
Development
Execution

From the outset of each solar and batteryenergy storage project, we conduct thoroughassessments of environmental, ecological, andbiological impacts, in conjunction with ourcommunity engagement programs. Theseevaluations are integral to the approval
process of our Investment Committee (IC) for
each project. Our teams provide extensive
impact analyses that encompass the project's
entire lifespan.
Following IC approval, we develop acomprehensive project execution plan thatguides project execution, safety protocols, andensures compliance with local environmental
laws and regulations. It also outlines initiatives
to mitigate potential impacts. Additionally, anenvironmental O&M compliance plan isestablished for every project managed by our
O&M teams, ensuring adherence to ESG
factors throughout the power plant’s
operational life.

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

Environmental O&M Compliance Plan

Power Plant
Operation and
Maintenance

100 MW Shanxi Jincheng Power Plant, China

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

35

Environmental Metrics and Targets

Canadian Solar 2023 Sustainability Report

Case Study: Azuma Kofuji Environmental Stewardship
The Azuma Kofuji Power Plant is a 100 MW solar site that was developed as part of a pilot
project aimed at converting degraded agricultural land to solar farms. The abandoned, nonproductive farmland accounts for 79.4% of the project area, and this project was madepossible by newly enacted Japanese legislation promoting renewable energy power
generation that minimizes land-use impacts on quality lands. Azuma Kofuji is the largest
operational solar project in Fukushima prefecture to date.

Environmental Impact Assessment

For large-scale projects, the Fukushima Prefecture requires an Environmental Impact
Assessment (EIA) to evaluate and mitigate environmental impacts resulting from project
development. Through the EIA, we conducted vigorous research, prediction modeling, andevaluation with various professionals before determining the detailed design of the project.
We also had ongoing conversations with local and public organizations to understand theirperspective.

The key criteria reflected in the design and construction are:Drainage water and ponds made of permeable material instead of using concrete.
The construction schedule for each area was designed with consideration to the nesting
timing of precious birds.
When designing the layout of the panels, configured the placements to minimize theimpacts on the groundwater in the wasabi fields.
Panels were placed along the original slope of the ground to avoid major cutting andfilling work.
To avoid generating large amounts of noise and affecting the ecology of animals, the
PCS was chosen to be string type rather than central.
Avoided the cutting of tree roots where possible.

EIA at Azuma Kofuji

In 2018, we started EIA procedures based on the Fukushima Prefecture Environmental
Impact Assessment Ordinance. Specifically, we focused on the types of items to beinvestigated, predicted, and evaluated including water, soil, topography, and geology, theecosystem of animals and plants, landscape, and human interactions through creating EIA
method document. After conducting extensive research and holding several briefing
sessions with local communities and authorities, and receiving a written opinion from theprefectural governor, the final report was officially filed at the end of 2019.

Design and construction

The Environmental Impact Assessment research resulted in a detailed project design. We
carried out construction in accordance with the requirements of EIA report through its
completion in September 2022. Water quality and other environmental data continue to becollected and monitored on an ongoing basis.

100 MW Azuma Kofuji Power Plant, Japan36

Environmental Metrics and Targets

Canadian Solar 2023 Sustainability Report

Protection of Biodiversity
Biological diversity, or biodiversity, is the variety of life on Earth, including the variability among living organisms within an ecosystem. The relationship between earth and aquatic ecosystems iscomplex and maintaining the biodiversity within and between animal and plant species is crucial to supporting regional ecosystems. With industrial expansion and population growth, many
ecosystems are threatened, and the global decline of biodiversity poses fundamental risks to human well-being. When Recurrent Energy evaluates locations for project development, weconsider our impact to the biodiversity of the surrounding area. Solar projects often require significant land use, so Recurrent Energy seeks ways to minimize or offset any adverse effects on
biodiversity. We also explore opportunities to protect biodiversity by creating new habitats for local flora and fauna.

Case Study: Spain’s Bird Project
Spain's biodiversity, particularly its avian population, plays a crucial role in the broader
ecological landscape of Europe. Among the notable species is the Cercotrichas
galactotes, also known as the Rufous-tailed scrub robin, which earned recognition as the
Spanish Society for Ornithology's Bird of the Year in 2022. Unfortunately, the survival ofthis robin species is under threat, and they are listed as vulnerable in many regions
according to the Spanish Catalogue of Threatened Species. As the population continues
to decrease, the species will soon be reclassified as in danger of extinction. Urgent action
is required to prevent this decline from getting any worse and to restore the once
thriving Cercotrichas galactotes species.
Compensatory Measures in our PV plants:
To mitigate the impact of our 50 MW El
Salobral and El Montecillo PV plants locatedin Cordoba, Spain on this species, Recurrent
Energy is dedicated to implementing
measures that include research, project
management, and land stewardship. We
have partnered with an experienced group ofornithologists specializing in studying the
scrub robin to create and execute a
biodiversity plan.
Source: SEO/BirdLife, P. (2023) El alzacolarojizo, una especie casi exclusiva del continente
europeo - SEO/BirdLife. (link)

Research on the Species:
The research team's work is essential to Recurrent Energy’s understanding of the needs
and habitat requirements of the Cercotrichas galactotes and informs any necessarychanges that need to be made to our project management. The research team conducts
extensive sampling across potential habitats in the southern countryside of Cordoba.
They examine factors influencing reproductive success, such as clutch size, nestlingsurvival, and predation, while also assessing the impact of agricultural practices on
nesting sites. Advanced techniques, including DNA analysis of fecal remains, areemployed to identify the species' primary prey and assess prey availability. Additionally,
scientific banding and GPS tracking are utilized to monitor the movement and behavior
of individuals birds.
Conservation & Habitat Improvement:
In our commitment to safeguarding Cercotrichas galactotes' habitat and promoting
environmental stewardship, we aim to eliminate synthetic chemical inputs, such as
insecticides and herbicides. This helps protect the natural herbaceous cover that
supports insect populations, which is a key food source for the birds. Additionally, we
advocate for sustainable land management practices to ensure the long-termsustainability of the species' habitats.
Land Stewardship & Environmental Awareness:
Engaging local communities and landowners is essential for project success and the longterm conservation of the species. We facilitate the collaboration with partner farms tocreate a broad network of protected habitat for the scrub robin. Furthermore, thepromotion of the "Cercotrichas galactotes" wine and olive oil brand serves to highlightthe symbolic power and local connection to this species. Through these efforts, Recurrent
demonstrates how habitat protection and biodiversity conservation are core values
inherent in our project work.

37

Environmental Metrics and Targets

Canadian Solar 2023 Sustainability Report

Climate-Related Risks and Opportunities

energy storage product manufacturing activities, we have established an environmental
management system certified under ISO14001 system, and 5-year rolling targets on environmental
metrics aimed at measuring, managing, and minimizing these impacts.

100% of Canadian Solar's revenues are derived from clean, renewable energy.
Our businesses play a vital role in contributing to the global decarbonization
goals outlined in the Paris Agreement. Climate-related risks pose a serious
threat to human well-being and societal development. Recognizing theenvironmental impacts of our businesses, particularly solar module and battery

Climate-Related Risks
The climate-related risks associated with the development of our businesses are as follows,
including but not limited to:

Climate-Related Risks

Time Horizon*

Potential Impacts

Estimated Financial Implications

Compliance with climaterelated regulations andinitiatives

Short to longterm

Changes in regulatory policies and initiatives
pertaining to climate, energy, and environmental
protection may increase costs and administrative
responsibilities.

The precise implications depend on how evolving
regulations and initiatives impact our business.

Actively monitor and comply with the progressionof regulations and initiatives.

Environmental impact
from our solar andbattery storage
manufacturingbusinesses

Short to longterm

While our entire revenue stream stems fromrenewable energy, our operational activities haveenvironmental impacts, including GHG emissions,consumption of energy and water resources, andgeneration of waste.

Our environmental-related expenditure for 2023 wasapproximately $73 million including capital expenditureand other expenses.

We have established an environmental
management system that is certified under
ISO14001 and ISO50001 to measure these
impacts and we set 5-year rolling targets onenvironmental metrics to reduce impacts.

Environmental andecological impacts fromour solar and battery
storage project
development businesses

Short to longterm

Our project development has the potential toimpact the environment and ecology of thecommunities where we operate. This can include
aesthetic changes, disruptions to natural habitats,risks to wildlife, and increased noise levels fromconstruction activities.

Expenditures associated with project development may
increase as we refine project designs to minimize
aesthetic changes, select project sites to reduce
disturbances to natural environments, and implement
measures to mitigate noise generated by construction
activities.

Our internal project evaluation and authorization
procedures involve a thorough assessment of theenvironmental and ecological impacts associatedwith each project we undertake. This processensures that we work towards minimizing theirpotential adverse effects.

Product end-of-life
management

Short to longterm

Environmental impact of our solar modules andbattery energy storage products when they reach
their end-of-life.

Spending in R&D and other areas such as third-party
partnerships for project end-of-life management may
increase.

Continue to invest in R&D and design productsthat are easy-to-recycle and suitable-for-reuse,
and to devise cost-effective and environmentally
responsible recycling solutions

Environmental impact
among our supply chain

Short to longterm

Manufacturing operations of our suppliers haveenvironmental impacts such as the release of
GHG emissions, consumption of energy and water
resources, and the generation of waste materials.

The environmental-related expenditure depends on thescale of expansion of our business, which we anticipate
will continue to increase in 2024 given the expected
increase of our solar module and battery energy storage
product shipments.

Management Method

Continue conducting thorough audits of our
supply chain’s ESG performance to monitor
compliance.

*We define the short-term horizon as 0 to 5 years, the medium-term as 5 to 10 years, and the long-term as any period exceeding 10 years.

Please refer to our annual report on Form 20-F (link) filed with the U.S. Securities and Exchange Commission for a more detailed discussion of the risks associated with our businesses.
38

Environmental Metrics and Targets

Canadian Solar 2023 Sustainability Report

Climate-Related Risks and Opportunities
Embracing renewable energy sources is crucial forachieving global decarbonization objectives. According
to Lazard’s 2023 LCOE Report (link), solar energy has
emerged as one of the most cost-effective sources,
boasting a highly competitive LCOE in major global
power markets. It is therefore natural that market
forces are propelling its widespread adoption globally.
To meet the 1.5-degree Celsius goal of the Paris
Agreement, the International Renewable Energy
Agency (IRENA) has outlined that the total installed
solar PV capacity needs to increase to 5.5 TW or 5,500
GW by 2030 and to 18 TW or 18,000 GW by 2050,
compared to the current 1.6 TW or 1,600 GW in 2023.
With solar power constituting only 5% of the current
worldwide energy mix, the growth potential for solar
energy is substantial, and we are merely at the
beginning of this key growth trajectory.
Alongside the growth of renewable energy sources,
the need for battery energy storage solutions is
projected to increase exponentially. While the growing
adoption of renewables reduces power costs and aids
in decarbonizing global power grids, it can also create
price fluctuations and impact the stability of grids.
Battery energy storage systems make renewableenergy sources more reliable and dispatchable. Wood
Mackenzie projects that total battery energy storage
installation will likely surge from 18 GWh in 2018 tonearly 100 GWh in 2022 and is expected to reach 1
TWh or 1,000 GWh by 2028.
The promising growth outlook for both solar energy
and battery energy storage presents significant
expansion opportunities for our businesses in the nearand long terms. Our strategic business models arebuilt to capitalize upon these prospects by deliveringcost-effective, clean solar energy and comprehensive
energy storage solutions.
We have identified several climate change-related
opportunities that are pertinent to our businessdevelopment, alongside other potential areas for
growth.

Climate-Related
Opportunities

Time
Horizon*Growing demand
for solar modules

Short tolong term

Potential Impacts

Estimated Financial Implications

Growth of our solar
manufacturingbusiness

100% of our revenues
renewable energy.

Growing demandfor battery storage
system solutions

Short tolong term

Growth of our battery
storage systemsolutions business

Growing demand
for solar power
plantsShort tolong term

Growth of our project
development
business and O&M
business

Growing demandfor battery storage
plantsShort tolong term

Green financing tosupport thegrowth of oursolar and battery
storagedevelopment
businesses

Short tolong termareassociatedManagement Method
withWe expect our revenues to continue to grow withthe rapid global adoption of solar energy andbattery energy storage systems.

Continue to invest in technology
R&D to further increase
efficiency of solar modules andproduct quality and reliability
Continue to invest in R&D ofbattery storage systemsolutionsCapture 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
and battery storage
project development
businesses

In 2023, we received JPY 18.5 billion ($120 million)
through the issuance of a green project bond that
attracted a wealth of Japanese financial institution
investors to open access to a wide group of bothloan and bond investors. The funds will support
Recurrent Energy to grow its solar and batteryenergy storage projects under development andasset management business.

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

We received the Green Project Bond of the YearAward (link) from Environmental Finance, an online
news and analysis services headquartered in
London, for this green project bond.
We anticipate continued support from international
financial institutions to support our solar andbattery energy storage development business as
the demand for solar and battery energy storage
continue to increase in the global push fordecarbonization.

39

Canadian Solar 2023 Sustainability Report

Environmental Metrics and Targets

Case Study: Canadian Solar Infrastructure Fund
Canadian Solar owns approximately 15% of CSIF (link), Japan’s largest publicly listed
solar infrastructure fund (TSE: 9284). CSIF invests in renewable energy power
generation facilities in Japan and embraces ESG (link) as a core tenet to enhanceshareholder value. Canadian Solar’s subsidiary, Canadian Solar Asset Management
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 iscommitted 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 (JPYbillion)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 Ministry of Environment in Japan. CSIF’s Green Finance
Framework, as well as its other bonds and loans, have received the highest ratingof Green 1 from the Japan Credit Rating Agency, Ltd. (JCR).

100 MW Yixing Power Plant, China

40

Canadian Solar 2023 Sustainability Report
Highlights

About Canadian Solar

Environmental Metrics and Targets

Social Responsibility

Responsible Supply Chain

Governance

About this Report

AppendixSocial Responsibility
As a global leader in solar technology and renewable energy, our mission is to power the world with solar energy and create a better and cleaner Earth for future generations. We uphold thehighest standards of ethical business conduct, responsible sourcing, and treat our employees with the dignity and fairness they deserve. We strive to make a meaningful, lasting impact bothglobally and within the communities where we operate. Placing a high value on diversity, equity, and inclusion, our corporate culture not only shapes our identity but also drives us to provide
better products and services. Our culture and the collective efforts of our people form the foundation of our enduring success.

MissionVisionCore Values

SloganLead the energy revolution andcreate a brighter future together

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

Customer success, innovation,
grit, excellence

Make the difference!

In this Section

41

Working at Canadian Solar
Diversity, Equity, and Inclusion
Talent Strategy, Training, and Development
Freedom of Association and Collective Bargaining
Occupational Health and Safety
Connecting Employees with Our Mission
Making a Difference through Community Commitment

42
42
46
49
50
52
55

41

Canadian Solar 2023 Sustainability ReportSocial Responsibility

Working at Canadian Solar

Diversity, Equity, and Inclusion (DE&I)

As of December 31, 2023, Canadian Solar's global workforce consisted of 22,234 individuals,
including 21,948 full-time and 286 part-time employees. Within our workforce, 21,375 were
employed at CSI Solar and 859 at Recurrent Energy. We also worked with approximately 3,400
part-time contractors globally in 2023.

Diversity, Equity, and Inclusion (DE&I) are at
the heart of Canadian Solar's strategy, serving
as key drivers of a more competitive andeffective business. DE&I not only enrich ourtalent pool but also provide diversified
perspectives
inourdecision-making
processes. Our commitment to DE&I isintegral to our corporate culture, nurturing aworkforce that drives creativity, innovation,and long-term success.

CSI Solar
78%
12%
6%
4%

Manufacturing
General and Administrative
Research and Development
Sales and Marketing

Canadian Solar is an equal opportunity
employer (link). We have zero-tolerance
against any form of discrimination based on
race, ethnicity, gender, religion, politicalaffiliations, sexual orientation, age, disability
status, or any other characteristic. As part ofour commitment to transparency and fairness,

we complete and submit the Equal
Employment Opportunity (EEO) form (link)for our operations in the U.S. This form
provides a detailed demographic breakdownof our U.S. workforce by race and gender. Ourlatest EEO forms filed in 2023 indicated that
58% of our U.S.-based employees belong to
ethnic minority groups.
Canadian Solar stands against any form offorced labor within our operations or supply
chain. We are committed to treating all
employees and individuals associated with ourbusinesses with fairness, respect, and theutmost dignity. Our Labor and Human Rights
Policy (link) stipulates these standards,
specifying the rights to which all our
employees are entitled.

Recurrent Energy

30%

32%

General and Administrative
Project Deveopment
O&M

14%

24%

EPC

Volunteers for the Pride Month Committee from Our North America Team42

Social Responsibility

Canadian Solar 2023 Sustainability Report

Promoting Diversity, Equity, and Inclusion in All
Human Capital Management Areas

Gender Equality
At Canadian Solar, we recognize the importance of gender equality as
both a fundamental human rights issue and business imperative. We
have made gender equality a top priority. We conduct annual gender
pay analyses to make sure our female employees are paid equally andpromote initiatives and workshops dedicated to female empowerment.

Promote Diversity during Hiring and Promotion Processes
Canadian Solar hires, promotes, and rewards
employees based on their qualifications,experience, potential for development, andmerit-based performance. We also recognize
the value of diversity and actively consider
diversity factors in our operations. We believea diverse workforce contributes to a broader
range of perspectives, leading to more robust
decision making and in turn driving a morecompetitive and effective business.
We aim to increase the proportion of ourfemale employees and employees withdisabilities. Within our global workforce, ourgoals are to raise female representation to
40% by 2028, up from 32% in 2023, and the
proportion of employees with disabilities to 12% by 2028, up from 0.7% in 2023.

Female Employees by Job Class
40%
32%

32%

26%

10%

9%

2022

2023
Senior Management

2028
Overall

Middle Management and Above

Employees with Disabilities
1-2%

0.7%

0.7%

2022

2023

Canadian Solar conducts gender pay analysis
covering our entire global workforce,
including employees at both CSI Solar andRecurrent Energy on an annual basis, aiming
to identify and address any unjustified pay
disparities between our female and male
employees. The gender pay analysis not only
ensures compliance with employment laws
and prevents potential legal issues related todiscrimination, but also promotes genderequality. Equitable compensation practices
are essential to cultivating an inclusive work

environment, which in turn enhances
employee morale, retention, and trust in thecompany.
Our latest gender pay analysis covered 100%of full-time employees across Canadian Solar'sbusinesses, totaling approximately 22,000
individuals as of the fourth quarter of 2023.
The analysis revealed that women earned
approximately 95% of what men earned at
Canadian Solar, which is within a 5% margin
that is considered equitable.

30%

26%

7%

Gender Pay Analysis

Indicator

Definition

2023 Result

Gender pay ratio

Female-Male (total)

95%

The gender pay gap ratio was determined by
calculating the ratio of female to male
employees across positions occupied by bothgenders. This analysis did not take into
account other job-related factors such as
tenure and experience.
To advance gender pay equity, we willprioritize internal communication and target
equal pay for each position level across ourbusinesses. We plan to conduct annual gender
pay audits, accompanied by the developmentof action plansinequalities.

torectifyany

identified

Meanwhile, we will actively support theadvancement of women into higher-paying
positions and leadership roles throughmentorship programs, leadership training, andestablishing diversity targets for upper
management. Additionally, we will invest in
education and professional development for
women to ensure they have equal opportunities
to upskill and advance in their careers.

2028

43

Canadian Solar 2023 Sustainability ReportSocial Responsibility

International Women’s Day Sharing Session

Employee Engagement Survey

Celebrating International Women’s Day is acherished tradition across our international
offices where we honor the essential
contributions of our female colleagues andinspire further progress towards genderequality.

Employee engagement is a collective indicatorthat assesses the emotional investment
employees have in their work. It encompasses
employees’ sense of belonging and alignment
with the organization’s objectives, as well as
their motivation and job satisfaction.

In 2023, our North America team at CSI Solarorganized a sharing session for female
employees representing diverse backgrounds
and career stages. The session was designed to

The Gallup 12 Employee Engagement survey,or Q12, is a respected metric utilized by over
3,900 companies worldwide. Comprised of 12questions, the Q12 measures the emotional
commitment employees have toward theirorganization. It was designed to provide
insights into employees' sense of support,
opportunities for development, and alignment
with company objectives. For instance, thesurvey examines whether employees have thechance to leverage their strengths and receive
recognition, among other aspects.

North America Team Celebrating International Women’s Day

inspire our female colleagues in their pursuit of professional development. It offered a forum
where they could celebrate their achievements, discuss challenges encountered in their careers,and gain inspiration for continued success.

Development Group WISE: Women in Solar Energy
In 2019, we launched Women in Solar Energy (WISE), a China-based association which aims toboost women's participation and career growth in solar industry. Comprised of female executives
from multiple firms, WISE hosts regular events to explore solar trends, offering mentorship andresources to women in the industry.

Inclusion

Modeled on the Q12, our employee
engagement survey is scored out of five points,

where higher scores indicate higher levels of
engagement. Generally, companies withhigher employee engagement have higher
retention
rates,
increased
production
efficiency, enhanced customer satisfaction,and improved profit margins compared tocompanies with lower employee engagement.
Our 2023 employee engagement survey
showed that our average engagement score
was 4.44. This represents a 0.04-point increase
from 2022 and a more significant rise of 0.14
point from 2021.
Our 2023 survey revealed that our corporate
culture, sense of belonging and performance
are highly valued by our employees. However,the feedback also suggests areas for
improvement, particularly concerning accessto information and the communication
channels for sharing it. We are using theseresults to develop targeted measures toimprove our management processes andemployee engagement.

Recurrent Energy Town Hall Meetings
To foster direct communication and enhance
employee engagement, Recurrent Energyorganizes two online town halls every quarter,
tailored to accommodate global time zones.
These events serve as a platform for
employees to interact directly with senior
management, offering a unique opportunity toaddress questions in real-time. For those who
prefer not to speak in large groups, there isalso an option to submit questions
beforehand. The forum is designed toempower
employees
toaskseniormanagement their questions, celebrate
successes, share new initiatives, and stay
informed about our strategic goals and annual
targets. These meetings also nurture a senseofbelongingamong
our
employees,
contributing to a more inclusive environment.
To evaluate the impact of our town halls andgatheremployee
feedbackontheirpreferences,we
conducted
aglobalengagement survey in the third quarter of2023. The majority of the feedback received
was integrated into subsequent town halls,
with an emphasis on showcasing individual andteam accomplishments across various regions
to enhance recognition. We will continue toutilize this feedback loop to ensure thecontinued
relevance
andeffective
communication of information at a global level.
LATAM Team at Intersolar South America 2023

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Canadian Solar 2023 Sustainability ReportSocial Responsibility

Training on DE&I

Raising AwarenessTraining plays an instrumental role in our ongoing pursuit of greater DE&I in the workplace.
At Recurrent Energy, we have introduced avariety of DE&I training programs to ouremployees, aiming to address biases andfoster a culture of respect and inclusivity.
Recognizing the detrimental impact of biases
on underrepresented groups, we haveintegrated unconscious bias training into ourEssential Skills for People Leaders program. All
new managers are required to complete 8.5
hours of training to learn how to identify,
address, and proactively mitigate biases indecision-making. Furthermore, we offer abroad spectrum of training content, ranging
from short videos to on-demand courses, tobolster awareness of diversity and inclusion
within the company. In 2023, 14% of our global
workforce partook in some form of DE&I
training. As we look forward, we will use thismetric to benchmark our year-on-year
progress on awareness and trainings to foster
diversity and female empowerment.
At CSI Solar, we have partnered with Culture
Wizard, an online platform designed to assist
organizations in navigating and managing thecomplexities of cultural differences. The
platform offers a range of interactive coursesthat are designed to deepen employees’
understanding of cultural sensitivities. We
have also integrated DE&I-centric training
courses into our Learning Management
System, accessible through LinkedIn Learning.
These educational initiatives underscore ourcommitment to promoting diversity andensure that our workforce is well-equipped tocontribute to an inclusive workplace culture.

Canadian Solar ESG Town Hall Meeting
At Canadian Solar, we organized our inaugural global ESG townhall meeting in October
2023, aiming to increase our employees’ understanding of the evolving ESG landscapeand align everyone at Canadian Solar with our company goals and targets. During thetownhall, our Chief Sustainability Officer (CSO) and ESG working group introduced
Canadian Solar’s ESG strategy, including our goals and targets, provided an update on
the progress made in achieving them, and outlined the support needed from our global
teams. The event also featured a question-and-answer session. More than 800 employees
participated, and we received a satisfaction rate of 4.5 out of 5 from the post-event
satisfaction survey.

ESG Newsletter
Since 2023, we have been publishing our ESG Newsletter on a quarterly basis to raiseawareness about ESG and keep our employees informed of our latest progress towards
achieving our sustainability goals. To date, the topics covered in the newsletters haveincluded an introduction to our 2022 sustainability report, an overview of the SBTi, ourprogress towards meeting the Ten Principles of the UNGC, and our contributions to the
UN SDGs.

North America Team Celebrating Diwali 2023

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Canadian Solar 2023 Sustainability ReportSocial Responsibility

Talent Strategy, Training, and Development
Our team members are our most valuable assets, central to our sustainable competitiveness andthe attainment of our corporate goals and mission. Consequently, we periodically reassess ourtalent strategy and monitor progress to ensure alignment with our short-, medium-, and long-term
objectives.

Talent Review and Succession Planning
We conduct regular talent review projects throughout the year to assess and recognize the talentskillsets vital to our business's long-term success. Each year, we align our organizational structurewith strategic priorities and develop succession plans for key positions. Utilizing talent standards,
we review our employees and implement tailored development strategies for our varying talents
which may include promotions, salary adjustments, job rotation, assigning important tasks, andopportunities to serve as mentors or lecturers, or to participate in leadership development
programs.

Talent Retention Strategy
We aim to reduce turnover, increase employees’ satisfaction and engagement, and ultimately
retain top talents. Our talent retention strategy includes offering competitive compensation andbenefits, providing opportunities for career growth and development, creating a positive work
environment, fostering strong relationships between employees and managers, and implementing
policies that promote work-life balance.

Talent Training and Development Programs
Canadian Solar University
We are committed to ongoing investment in our leaders to ensure they receive theappropriate guidance and training needed to support and inspire their teams. We offer
individual and group-based training opportunities for our leaders. In 2023, two global
cohorts of new and first-time leaders graduated from Canadian Solar University’s
Essential Skills for People Leaders (ES4PL) program.
ES4PL is a comprehensive 34-week program designed to facilitate the transition of newleaders into proficient managers. By integrating asynchronous learning from Franklin
Covey with group coaching, the ES4PL program ensures participants can immediately
apply acquired knowledge.
In 2023, the Canadian Solar University celebrated the launch of its inaugural Guest
Lecturer Series, which featured esteemed external speakers discussing topics of highinterest and relevance. The series premiere, titled “Concepts, Frameworks, andTechnologies Needed for the Wider Development of Photovoltaic Electricity,” achieved arecord attendance rate.

Share Compensation Plan
We offer share-based incentive plans toemployees. In 2006, Canadian Solar Inc.
adopted a share incentive plan that grants
restricted shares, options, and restricted share
units to eligible employees, directors, andconsultants. A majority-owned subsidiary ofCanadian Solar Inc., CSI Solar Co., Ltd. also
maintains an Employee Stock Ownership Plan
(ESOP) available to eligible directors andemployees.
Weconsidershare-based
compensation, including performance-based
share awards, to be crucial for attracting,retaining, and motivating key personnel. We
intend to continue offering share-based
compensation in the future. For further details
on our share-based incentive plans, pleaserefer to our annual report on Form 20-F (link).
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Recurrent Energy Academy

CSI Solar University

In 2023, we established Recurrent Energy Academy, a subset of Canadian Solar University,
created specifically to provide targeted and distinct development opportunities for our
employees.

Established in 2022, CSI Solar University (CSIU) aims to enhance professional skills, inspire
innovative thinking, and promote effective communication across our workforce. CSIU
offers a variety of courses on topics such as strategic management, finance, industry
trends, digitalization, and effective communication. These courses are delivered by third
party experts, our senior management, and department heads. The courses have been
met with enthusiasm, with more than 2,400 employees participating in 2023. Committed
to the principle of continuous improvement, CSIU will continue to refine its educational
programs and teaching methodologies to support employee development and career
growth within our company.

Recurrent Energy Academy’s inaugural program, the Certified Trainer Program (CTP), wasdesigned in 2023 for launch in the first quarter of 2024. This program marks the first
instance of in-person training at Recurrent Energy, complementing the virtual courses
offered through Canadian Solar University. Following a rigorous selection process, 13
trainers were selected from the regions where Recurrent Energy maintains a local office.
Trainers receive continuous coaching to enable them to lead quarterly training sessions
for their colleagues. The training programs are collaboratively developed by the training
and development team and in-house experts, with a focus on enhancing efficiency incommunication and other key soft skills.
In addition to our in-house programs, our ongoing partnership with Cornell University
offers professional development opportunities to key talents throughout theorganization. Employees have engaged in courses on the following topics:

Becoming a Strategic Leader
Developing Executive Presence for Women Leaders
Giving and Receiving Feedback
Power and Gender Dynamics
Concise Communications
Acknowledging the importance of individual development, we implemented LinkedIn
Learning across the company in 2023. This partnership grants our employees full accessto an extensive suite of training and developmental courses. With a wide range of content
available, employees can easily pinpoint resources specific to their developmental needs
or to address objectives set during performance management reviews. To date, we haveachieved a 74% activation rate, a figure that is well above the industry median for accountactivation rates. We take pride in this high level of engagement, as it demonstrates thedepth to which professional development is integrated into the core of Recurrent Energy.

New Manager Development Program
Targeting newly promoted managers, the program is designed to facilitate theirtransition into new roles, enhance their management skills, and empower them to lead
their teams effectively. The program features two-day workshops and a series of five
online courses covering topics such as corporate culture, role adaptation, andmanagement techniques. In 2023, a total of 90 managers at CSI Solar China teams
participated in the program. Feedback received from managers indicates that they feel
more confident in navigating practical management problems. A key result of the
program is the continual compilation of case study collections exemplifying best
management practices, which can be passed down to future managers.

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Employee Performance Appraisal

On-the-Job Training
At CSI Solar, we facilitate regular on-the-job training sessions for all employees, covering
areas such as Environmental Health and Safety (EHS), compliance, industry and market
development, professional skills, and trade knowledge.
In 2023, employees at CSI Solar received an average of 22 training hours, equivalent toover eight training sessions. We organized nearly 2,800 training courses, totaling 407,935
hours, and involving 154,445 participants. These courses can be categorized into fivegroups listed below.

On-the-Job Training

21.9

22.1

5.6

2020

6.4

5.0

2021

2022

Avg. Hours Per Employee

Category
Compulsory Courses

General Courses

24

10.0

8.3

2023

Supervisors conduct a preliminary assessmentof each employee's performance based on
their actual performance. After receiving thepreliminary results, employees are provided
the opportunity to review and provide
feedback before the final rating is confirmed.
This approach ensures transparency andfosters
collaborationinperformance
management.

Work-Life Balance

42.6

20.4

We changed the frequency of our employee
performance appraisal from an annual basis toa quarterly basis. As part of the appraisal
process, employees set their quarterly targets
and discuss them with their supervisors foralignment with our corporate goals. The
performance appraisal is conducted on an
online system that tracks employees’
contributions.

2028

Avg. Times Per Employee

ExamplesWe firmly believe that maintaining a healthy
and balanced workforce is vital to the successof our mission. Our goal is to accommodate
the diverse range of lifestyles our employees
lead and allow them to effectively balance theirprofessional and personal responsibilities.
In 2023, we upheld our commitment to a
Hybrid Work Policy, allowing employees towork remotely for a portion of their workweek
based on their needs and local regulations.
This flexibility is designed to boost satisfaction
and productivity.

Moreover, we offer generous personal leave to
our employees beyond our legal requirements
in most locations. For example, we provide 158
days of maternity leave in China, 15 days ofpaternity leave, and 10 days of annual parental
leave for three years; in the U.S., we comply
with the Family and Medical Leave Act (FMLA),
offering eligible employees 12 weeks of unpaid
leave for family care, reinforcing ourcommitment to work-life balance. We areparticularly proud of Recurrent Energy’s efforts
tonormalize
maternity
leaveacrossgeographies, providing an updated maternity
leave policy that is best in class.

Annual Compliance Training, Quality Awareness, Information Security
Awareness, Internal Control Concepts and Audit Communication
Efficient Office Skills, Project Management Skills, Legal Knowledge
Training

Professional Courses

GHG Emission Standards, Introduction to the Photovoltaic Industry,
Basic Knowledge of Six Sigma, Knowledge of Shipping Market

Special Skill Courses
and Projects

Cross-Cultural Management Talent Development Program,Empowerment Program for Frontline Team Leaders, Government Skills
Subsidy Program

Leadership Courses

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Canadian Solar 2023 Sustainability ReportSocial Responsibility

Freedom of Association and Collective
Bargaining
Canadian Solar strictly adheres to local
employment laws and regulations, respecting
the rights of our employees to form or become
members of labor unions or other similarorganizations of their choosing, as well as theirright to collective bargaining. Our Labor andHuman Rights Policy (link) explicitly outlines
our commitment to uphold the rights of ouremployees to freedom of association andcollective bargaining.

We are committed to upholding the principles
of fairness, respect, and dignity in thetreatment of our employees and all individuals
connected to our company. These principles
are enshrined in our Labor and Human Rights
Policy and are considered non-negotiable,
serving as the foundation for the rights andentitlements of everyone we engage with. We
are resolute in our stance against any form offorced labor across our operations and supply
chain.

Grievance Procedure and Zero Tolerance
for Retaliation
In line with our goal to create a supportive andequitable workplace, we have developed asuite of internal measures to protect our
workforce against discrimination and otherforms of misconduct. Our establishedcomplaint procedure details the steps
employees should take to report issues, thesubsequent investigative phases, and ourunwavering commitment to preventing any
form of retaliation. We conduct ongoingawareness campaigns to familiarize our
stakeholders with these support frameworks,
encouraging them to report any incidents of
non-compliance, aggression, bias, harassment,or other concerns without fear. By doing so,
we are well-prepared to address grievances inan efficient manner that minimizes risks,
controls the repercussions of any violations,andupholdsapositive
professional
atmosphere.

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Occupational Health and Safety
Employee safety is our top priority at CSI Solar, Canadian Solar’s solar and batteryenergy storage products manufacturing subsidiary. Our operations have beencertified under the ISO45001 occupational health and safety management system toensure a healthy and safe workplace.
Our safety policies mandate the establishmentof a safety committee and a specialized safety
operations management team prior to thecommencement of operations at any factory.
The safety committee convenes regularly toreview, discuss, and make decisions on safetyrelated
measures.
Beforecommencing
operations, all employees must undergo
environment, health, and safety (EHS) training
and pass the relevant tests. We also ensure our
employees are well-equipped with theappropriate personal protective equipment(PPE). We rigorously document and address
safety incidents, including “near misses,” inaccordance with our safety protocols. Any
incidents resulting in lost work time must bereported within 24 hours of occurrence. We

conduct internal investigations for all such
incidents and implement comprehensive
corrective and preventative measures toprevent future accidents.
Our safety policies and procedures havehelped us maintain a low rate of safety-related
incidents. In 2023, our total recordable injury
rate (TRIR), encompassing all injuries that
required medical treatment, was 0.76 case per
million working hours. As part of our ongoingcommitment to further reduce operationalrisks and safeguard our employees frompotential injuries, we are implementing new
programs related to management of change,
lockout-tagout (LOTO), and machinery safety
procedures.

Types of Injuries (%)

14%
40%

Caused by Vehicle

8%

Caused by Machinery

6%

Collision
Burn
Others32%

At Recurrent Energy, our commitment tosafety and well-being is a fundamental part ofour company culture. This commitment is ashared responsibility that extends from theboardroom to the field and is embraced at allorganizational levels. We operate under the
principle of zero compromise to ensure thewelfare of our employees, contractors, andvisitors.
We strictly adhere to all relevant occupationalsafety laws and regulations where we operate.

Our proactive health and safety program isdesigned not only to meet but to exceedindustry standards, with a strong emphasis on
prevention and continuous improvement.
We have made significant strides towardachieving compliance with ISO9001 (quality
management
system)andISO45001(occupational health and safety management
system).
We
anticipate
achievingfull
certification by the end of 2025.

Recordable Injury Rate (per million working hours)
Incident Data (2023)

2.37

0.94

2017

2018

1.28

2019

0.85

2020

0.68

2021

0.75

2022

0.76

2023

Recurrent Energy
Overall

EPC

O&M

Fatalities

0

0

0

Lost Time Injury Rate (LTIR)

0

0

0

Total Recordable Injury Rate (TRIR)

1.481

0.36

1.52

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Hazardous Materials and Environmental Management
At CSI Solar, we prioritize safety andenvironmental
responsibility.
Our
manufacturing operations are certified under
ISO14001 Environmental Management System
and ISO45001 Occupational Health and Safety
Management System, focusing on managing
the safety of chemicals and operational
equipment. This combined strategy ensuresthat all workplace hazards are systematically
identified, assessed, and controlled across our
manufacturing divisions.
Before incorporating any hazardous materials
or risky chemicals into our sites, we enforce aformal approval protocol. This includes adetailed review of the Safety Data Sheet (SDS)
for each chemical and an evaluation of thepotential risks and hazards. Our products areclassified as "articles" under the REACH
regulation, indicating that they do not releasehazardous substances under normal orforeseeable conditions of use.
We offer comprehensive training programs forall
ourstaff,
includingmandatory
environmental, health, and safety (EHS)
training for new joiners, as well as routine EHS

refresher courses. Employees who handle
hazardous
chemicalsreceive
additionaltargeted training to understand the specificrisks and safety measures required. To
promote awareness, we display warning signs
in key areas to provide easy access to relevant
safety information. We also provide healthcheck-ups for staff working in environments
where exposure to occupational hazards may
occur.
Our safety protocols across all factories involve
hazard identification and risk assessment,change management, contractor safety,
emergency response planning, and confined
space procedures. During the construction of
new facilities, we perform equipment safety
checks to ensure that all equipment is safe.
Creating a secure workplace for our employees
is imperative for us.
To maintain strict control over hazardous
materials entering our premises, we require
key suppliers and contractors to sign an EHS
agreement before delivering goods or services.

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Connecting Employees with Our Mission
Sustainability lies at the heart of Canadian Solar's mission. We encourage our employees to engage with and embrace this vision. To achieve this, we have adopted the following approaches to embed ourcompany’s values and culture into our employees' work.

Advocacy
Earth Day Highlights

Low Carbon Office Week

Penguin Adoptions

Our annual Earth Day celebrations highlight thesignificance of sustainability to our employees. We use
these occasions to organize educational workshops andteam-building activities aimed at cultivating a culture ofsustainability and equipping our staff with theknowledge to lead more eco-friendly lives.

We launched a Low Carbon Office Week at our offices in
China in 2023 to promote our 5R waste reduction
strategy of “reduce, refuse, reuse, repair and recycle”.
Through the campaign, we effectively engaged our staff
in environmentally conscious behaviors, highlighting
our company-wide commitment to energy efficiency. A
notable achievement was the transition of ourcafeteria’s practices from disposable to reusable andsanitary takeout boxes and utensils. This change led to asignificant reduction in single-use items, equivalent to
reducing carbon emissions by approximately 466.928 kg
per month.

In 2023, our CSI Solar team in the EMEA region
partnered with the South African National Parks andWildlife College (SANParks) rehabilitation center in Cape
Town and adopted five African Penguins, a highly
endangered species, which were admitted to therehabilitation center due to issues such as nest flooding
and emaciation. By adopting these penguins, we arecontributing to their rehabilitation and veterinary
treatment, with the goal of releasing them back into thewild after recovery.

On Earth Day 2023, Recurrent Energy's EMEA teaminitiated a sustainable hive adoption event. We
successfully adopted 190 beehives in Calascibetta,
Sicily, Italy, reinforcing our ongoing efforts to advocate
for biodiversity. Meanwhile, Recurrent Energy's
colleagues in Austin, U.S., engaged in a Lady Bird Lakeclean-up event in support of the Trail Conservancy. Our
cleanup efforts resulted in the collection of 8,000
pounds of waste. We are proud to support themaintenance of Austin's beloved Butler Hike-and-Bike
Trail.

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Volunteering

Tree Planting and B2Run in Munich

Partners Program

Rescuing Abandoned Animals

In 2023, CSI Solar’s EMEA team launched the B2Run in
Munich event. This initiative offered a creative approachto promoting employee health and wellbeing, while
simultaneously encouraging participation in ourenvironmental efforts. By logging kilometers throughoutdoor activities such as jogging and cycling, ouremployees contributed to a larger cause: for eachkilometer recorded, Canadian Solar planted a tree,
thereby enriching our environmental contributions.

Building on our commitment to social responsibility, our
LATAM team launched a partners volunteering programin May 2023. This program empowers our employees to
dedicate up to 16 hours of their work time to volunteer
at NGOs that are partnered with us. The program is atestament to our belief in the value of community
service and the importance of integrating these values
into our corporate culture.

In April 2023, CSI Solar’s LATAM team expanded ourcommunity outreach by collaborating with Pegadas doBem, an NGO in Brazil dedicated to rescuing abandoned
animals from the streets. By covering essential costs
such as food and medication, our support directly
benefited the welfare of these animals.

By December 2023, the efforts of our employees
resulted in the planting of 3,258 trees across the EMEA
region, which is equivalent to reducing 1,303 tons of CO₂
per year. We also personalized this effort by celebrating
our employees’ milestones; those marking their 5th or
10th work anniversaries had trees planted in theirhonor. These trees, along with others planted throughour employees’ logged kilometers, were all donatedthrough GROW MY TREE (link).

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Social Responsibility

e-STORAGE Charity
In late 2023, our e-STORAGE team established a steering committee to enhance ourcharitable efforts, leading to the launch of the e-STORAGE Charity. The committee
focuses on identifying initiatives that align with our values for support, promoting a
corporate culture of giving and community engagement.
This year, the committee has set the Charity's inaugural mandate: to"help and touch the lives of children in need." In pursuit of this, they
have selected two charities to support in 2024, one local to ourheadquarter office in Canada and the other in the U.K. where many of
our committee members are located. The first is Nutrition for Learning(link), an organization dedicated to ensuring universal food access at schools andpromoting well-being, healthy relationships, and food literacy. This program has
become especially relied upon post-COVID, as food inflation rates in Canada havereached 10.6% in 2023. The second charity is Rainbow Trust (link), which aims to givelife-changing support to children battling a life-threatening terminal illness and theirfamilies.
By prioritizing the needs of children, e-STORAGE not only confronts the pressing social
challenges faced by this highly vulnerable group but also contributes to the future of
our community. We hope to make a tangible and positive impact on the well-being ofthese children.
Each contribution is essential, and we invite our stakeholders to become involved
through volunteering, donations, or advocacy. The Charity’s initiatives and engagement
opportunities can be found on e-STORAGE’s website (link).

Canadian Solar 2023 Sustainability Report

Charitable Initiatives
We are committed to uplifting underserved communities throughdonations that target educational and economic disparities.
In January 2023, Canadian Solar donated 65,975 KWp solar modules andtwo inverters to the Centro Educacional Assistencial Profissionalizante(CEAP), an NGO in São Paulo's Pedreiras neighborhood focused on youth
development. We also covered the installation costs, helping the CEAP
save about 50% on electricity costs. Our support provided significant
financial relief to the NGO, allowing them to redirect more resources
towards their youth programs.
In the same month, our EMEA team partnered with the HOPE
Foundation, an NGO in South Africa, to provide essential items such as
shoes and school uniforms to orphanages, reinforcing our commitment
to positively impact the lives of children in need.
Committed to realizing inclusive and quality education for children, ourChinese team made substantial contributions in 2023 by participatingin two key events. In November, we actively engaged in a donation
event organized by the Suzhou Aixindaren Charity Foundation, aimed
at supporting underprivileged families. Our team successfully raised
RMB 50,000 within the company, which was then used to purchase school bags for over
200 students across three schools in Guizhou Province, China.
This was followed by a book sharing activity in collaboration with the Stars Youth
Development Center – an NGO focused on promoting reading among children. Our
employees donated 848 books to Tangwei Elementary School in Yangjiang City,
Guangdong Province, China benefiting more than 1,800 students aged six to twelve.
Through this book donation, we hope to expand children’s access to knowledge,
promote literacy, and inspire a sense of community and motivation among students.

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Greenhouse Gas Emissions at Our Global Sales
Offices

Making a Difference through Community
Commitment

The main sources of carbon emissions for our
globalsales
offices
were
electricity
consumption (scope 2) and business travel(scope 3, category 6). Our calculation of office
GHG emissions was based on actual electricity
consumption and documented employee
travel expenses. The emission factors forelectricity were obtained from Climatiq (link),
and those for business travel were sourced
from the EXIOBASE database v3.3.

At Recurrent Energy, we collaborate closely with stakeholders in the communities where wedevelop our projects. From local grid experts to first responders, we partner with local entities toseamlessly integrate solar and battery energy storage projects into the existing energy
infrastructures and surrounding communities.

Total office GHG emissions rose to 1,926 tonsof CO₂ equivalent in 2023, up from 940 tons in
2022. Our per capital emissions also saw anincrease, rising to 3.66 tCO₂ in 2023 from 2.31
tCO₂ in 2022. The increases were primarily due
to the opening of new offices for our batteryenergy storage and inverter products, and wellas an increase in our product shipments.

Sales Offices Carbon Emission Composition in 2023 (%)

92%
8%Business Travel
Electricity

Sales Offices Carbon Emission Composition in 2022 (%)

Japan

The Japanese government has announced an ambitious goalof achieving carbon neutrality by 2050, driving the need formore sustainable solutions for the country's power grid. We
anticipate regulatory changes aimed at accelerating the
installation of renewable energy to meet this target. Wind andsolar power are variable resources with intermittent output;
thus, transmission system operators must skillfully balance
the demand and supply of power within their grid systems toensure resilience. Our solar solutions, paired with batteryenergy storage, are well-positioned to address this market
opportunity.
To tackle and mitigate potential regulatory and permitting
challenges, we prioritize regular consultations at the projectlevel with local communities and government officials
throughout all project phases. Our project development
adheres to strict design protocols, which include
implementing comprehensive drainage systems andstormwater management measures to protect water in andnear the project site from contamination. Despite the uniquechallenges posed by Japan’s mountainous terrain, we havesuccessfully navigated these complexities for over a decade.

74%
26%

Business Travel
Electricity

We consistently strive to reduce and offset the carbon emissions originating from our offices byprioritizing energy efficiency. Compared to 2022, GHG emissions from electricity consumption
decreased in 2023 thanks to our implementation of energy conservation measures.

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Social Responsibility

Italy

Canadian Solar 2023 Sustainability Report

In Italy, Recurrent Energy is executing a strategic, multi-tiered
public affairs and advocacy campaign to elevate thecompany's profile within key decision-making andcommunication forums. We engage with governmental andlocal bodies to improve the efficiency of permitting processes
forutility-scale
plantsandcontributeto
Italy'sdecarbonization efforts.
The recent decree regulating auctions for new Renewable
Energy Sources (RES), including storage, agrivoltaics, and theselection of suitable areas for renewable plant installations,highlights the importance of building partnerships. These
partnerships are essential to foster grassroots "Yes In My
Backyard" (YIMBY) movements and counteract any "Not In My
Backyard" (NIMBY) sentiments.
To achieve this, we deliver lectures at prestigious universities,
actively engage in sector seminars and events, and pursue
meaningful collaborations to support training, sports, andinfrastructure initiatives. We prioritize environmental
conservation and the safeguarding of artistic and cultural
heritage.
As part of our local engagement strategy, we design projects
to align with the unique characteristics of each region where
our plants are located. Our goal is to deliver benefits acrossthe environmental, economic, and social dimensions. An
example of this approach is our recently inaugurated
Anguillara plant in Marsala, Sicily.

South Korea

In South Korea, we have faced challenges related to gridinterconnection, stemming from system saturation and acentralized power generation model struggling to meetthe growing demand for sustainable energy. These
challenges are exacerbated by civil complaints andlimitations in South Korea Electric Power Corporation’s(KEPCO's) capacity. To address these issues, thegovernment is restructuring the system to eliminate nonviable projects. This requires us to carefully monitor
interconnection capacity to secure our grid connections.
Moreover, transitioning to a distributed power systemstrategy has proven beneficial. By emphasizing local
power generation, we can attract power-consuming
industries to our project areas, thereby decentralizing
energy distribution and enhancing grid resilience.
Community engagement has been instrumental in the
success of our projects. Informational sessions clarify thebenefits of our projects, dispel misconceptions about
solar energy, and bolster community approval. Offeringongoing in-kind contributions and funding local events
throughout the project phases also fosters a positive
community perception of our projects. These strategies
not only strengthen community relations but also
consolidate our reputation as a reliable energy partner.

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Canadian Solar 2023 Sustainability ReportSocial Responsibility

U.S.

In 2023, the U.S. energy market witnessed a substantial shift
towards integrating advanced grid technologies and batteryenergy storage solutions, which significantly improved thescalability and efficiency of renewable energy systems.
Despite these technological advances, the development of
successful projects still faces numerous challenges. Effective
stakeholder engagement is a critical factor in this evolving
landscape. We engage with local, state, and federal agencies
early in the development process to identify and mitigate
potential risks. By valuing community input and ecologicalconsiderations, we work collaboratively with communities todevelop pathways that minimize environmental andregulatory hurdles, thereby facilitating smoother project
execution.

Colombia

Before proceeding with the Caracolí I solar PV generation
project, Recurrent Energy engaged in consultations with the
Mokaná indigenous community of Malambo, who reside on
the prospective project site. These discussions led toagreements on vital matters such as labor hiring, acquisitionof goods and services, and equipment mobilization andtransportation. Recurrent Energy assessed potential positive
and negative impacts on the community and developed
strategies to mitigate any adverse effects. This consultation
process emphasized the importance of community
engagement, cultural respect, and support for education, andlocal development. Signed by all parties, the meeting minutes
signify the community's voluntary participation in the
consultation and the importance of intercultural dialogue inour collaborative efforts.
A Mokaná leader has deemed the recent process as critical for
upholdingthefundamental
rightsofindigenous
communities. Despite the obstacles posed by the COVID-19
pandemic, our stakeholders and indigenous partners havesuccessfully executed Latin America's first virtual priorconsent procedure. The Mokaná people have underscored the
project's economic advantages, notably the employment ofnearly 100% local workers from their territory. The project is
an excellent example of indigenous communities betting on
clean energy for their economic and social livelihoods.
289MW Qinghai Power Plant, China

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Non-Governmental Organizations and Memberships
Country

Organizations
Australia Clean Energy Council Modern Slavery Working Group

Australia

Country
Ireland

Clean Energy Investor GroupBrazilCanadaChile

Japan Climate Leaders’ Partnership (JCLP)

Brazilian Solar Photovoltaic Energy Association (ABSOLAR)
Japan

Canadian Renewable Energy Association

Investment Trusts Association, Japan (JITA)
MexicoChina Photovoltaic Industry Association (CPIA)

China

Jiangsu Photovoltaic Industry Association (JSPV)
Jiangsu Energy Storage Association (JSESA)
East Energy Storage Association (EESA)
Society of Entrepreneurs & Ecology (SEE)
Women in Solar Energy (WISE)

Colombia

The Association of Renewable Energies Colombia (SER Colombia)

Costa Rica

The Costa Rican Solar Energy Association
ENERPLANFranceElettricita Futura
Italy

Germany
GreeceNetherlands

Bundesverband Solarwirtschaft (BSW)
Bundesverband Energiespeicher Systeme (BES)
Hellenic Association of Photovoltaic Companies

The Canadian Chamber of Commerce in Mexico
Holland Solar
Energy Storage NL
Peruvian Association of Renewable Energies (SPR)

Portugal

The Portuguese Renewable Energy Association

Puerto Rico

Solar and Energy Storage Association (SESA)

Romania

Romanian Photovoltaic Industry Association (RPIA)

South Africa

South African Photovoltaic Industry Association (SAPVIA)
Spanish Photovoltaic Union (UNEF)

Spain

Association of Renewable Energy (PPA)
Association of Storage (AEPIBAL)
Asociación Española del Hidrógeno (AeH2)

SwedenSvensk Solenergi

U.K.

Solar Energy UK
Kentucky Solar Industries Association (KYSEIA)

Future Electricity
The Association of the Italian Solar PV Community

The Mexican Solar Energy Association

Peru

SER - Syndicat des Énergies Renouvelable
France Agrivoltaisme

Japan Photovoltaic Energy Association (JPEA)

Renewable Energy Association for Sustainable Power Supply (REASP)The Chilean Association of Renewable Energies and Storage

SEMI Standards

Japan Electrical Manufacturers' Association (JEMA)

Principles for Responsible Investment (PRI) Signatory

The Canadian Chamber of Commerce in Chile

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

Energy Storage Ireland

Japan Climate Initiative (JCI)

Solar Power Europe

Brazilian Association of Distributed Generation

Irish Solar Energy Association (ISEA)

Asia Pacific Real Assets Association Limited (APREA)

Smart Energy Council
Belgium

Organizations

Mid-Atlantic Renewable Energy Coalition (MAREC)USA

Solar Energy Industries Association (SEIA)
Southern Renewable Energy Association (SREA)
Texas Solar Power Association

58

Canadian Solar 2023 Sustainability Report
Highlights

About Canadian Solar

Environmental Metrics and Targets

Social Responsibility

Responsible Supply Chain

Governance

About this Report

Appendix

Responsible Supply Chain
Canadian Solar is committed to the responsible procurement of materials in all parts of our business, from manufacturing to project development.
CSI Solar, Canadian Solar’s majority-owned subsidiary, is responsible for manufacturing solar modules and battery energy storage products. CSI Solar collaborates with third-party suppliers toensure a responsible, reliable, and sustainable supply of all raw materials and components. These include solar silicon, ingots, wafers, cells, PV glass, aluminum, silver metallization paste, backsheets, and ethylene vinyl acetate encapsulants (EVA) for solar modules, as well as lithium iron phosphate battery cells for our battery energy storage products. We plan to expand CSI Solar’s inhouse manufacturing capabilities for ingots, wafers, cells, modules, and battery energy storage products to increase our control over our supply chain and costs. This initiative will further
enhance product quality and reinforce our industry-leading position in the solar and battery energy storage sectors.
Recurrent Energy, a subsidiary of Canadian Solar, is a global developer and owner of solar and energy storage assets. Capitalizing on our scale of operations, Recurrent Energy employs
centralized procurement strategies to secure a stable, adequate, and cost-effective supply of essential equipment for the project development business. The equipment includes solar modules,
inverters, trackers, mounting hardware, grid interconnection and power stability equipment. These procurement strategies support a robust supply chain, optimize project performance, andenhance our market competitiveness.

In this Section

59

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

60
60
61
61
62

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Canadian Solar 2023 Sustainability Report

ESG Integration in Supply Chain Management

Anti-Modern Slavery Task Force:

Our procurement management strategy
utilizes a centralized approach, overseen at thegroup level and executed through individual
divisions. Canadian Solar actively incorporates
ESG considerations into our supply chain
management. To ensure adherence to ourhigh quality, cost, and ESG standards, we

In October 2021, Canadian Solar establishedthe Anti-Modern Slavery Task Force to fortify
our group-wide initiatives against modern
slavery, including forced labor. This task force is
responsible for formulating and disseminating
anti-modern slavery policies and procedures. It
also oversees the implementation of training

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 aligns
with our company’s development requirements
and addresses the interests of our stakeholders.

Anti-Modern Slavery Initiatives
Canadian Solar does not tolerate forced laboror any form of modern slavery. We arecommitted to ensuring that modern slavery
does not take place anywhere in our business,
including our supply chain. To achieve this, wehave implemented robust anti-forced labormeasures, including policy development,
training, enforcement, and compliance, toprevent modern slavery in our operations andsupply chain.

Policy Development, Communication, Training, andCompliance
Canadian Solar has formed dedicated teams to develop and enforce anti-modern slavery policies
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 Lead GeneralCounselHuman Resources, led by the Group Headof HRGroup Procurement, led by Vice President,
Strategic Procurement

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)programs and conducts thorough due diligence
to ensure the efficacy of our anti-slavery
initiatives. The task force includes management
personnel from several key areas: compliance,
HR, legal, procurement, customer service, andsafety, quality, and environment.

Anti-modern slavery efforts in our own operations:
All our global manufacturing entities are
required to sign “Statement of Anti-Modern
Slavery Risk Management” on an annual basis.
As part of this process, our HR directors or
managers are required to confirm that theirrespective manufacturing entities comply withall applicable laws, regulations, and company
policies regarding forced labor. They must
explicitly affirm that their respective factories
are not involved in any activities associatedwith forced labor. The statement has beendeveloped based on the key internationallyrecognized principles and guidance, including
the Ten Principles of the UN Global Compact(UNGC) (link) and the International Labor Office
Indicators of Forced Labor from which UNGC
Principles are partially derived.
Furthermore, we administer mandatory
training on anti-modern slavery, both as part ofour employee onboarding process and throughannual training sessions. These programs aim
to heighten our employees' awareness of antimodern slavery initiatives, with a particularfocus on combating forced labor.
Many third party ESG audits have been
conducted at Canadian Solar’s manufacturing
sites. In addition to the self-initiated RBA VAP
audit conducted at our Thailand module factoryin 2023 as discussed earlier, many of ourfactories have successfully completed andpassed external third party ESG audits
requested by our customers. These audits
involved a detailed review of our labor practiceand employee working conditions and wereconducted by leading international audit firms
such as Achilles, STS and Kiwa. Additionally, we
have also worked with our customers and theirexternal advisors in developing and delivering
human rights training to the relevant Canadian
Solar business areas.

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Canadian Solar 2023 Sustainability Report

Modern slavery risk assessment and contractual assurance
from suppliers:
We extend our anti-modern slavery initiatives
to encompass our supply chain. Prior to
engaging with new manufacturing suppliers,
our central procurement division conducts amodern slavery risk assessment. We also
require our suppliers to provide contractual

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

Supplier Code of Conduct
We require all of our suppliers to adhere to
Canadian Solar’s Supplier Code of Conduct(link, the “Code”) to maintain a responsible
supply chain. This Code transcends the basic
requirement of prohibiting modern slavery,
extending to broader issues in human rights,
environmental protection, health, safety, andbusiness ethics. Compliance with our Code,primarily derived from the Responsible
Business Alliance (RBA) Code of Conduct (link),

serves as an integral part of our due diligenceprocessforassessingnew
suppliers.
Furthermore, we require our suppliers toensure that their own suppliers operate incompliance with the Code. This ensures that
not only our direct suppliers but also ourindirect suppliers – that is, our suppliers'
suppliers – uphold the obligations set forth in
the Code.

Supplier ESG Audits
We have implemented a rigorous ESG auditing
program to ensure that our suppliers comply
with our ESG standards and to effectively
manage ESG risks across our supply chain. This
program covers areas such as quality, humanrights, environmental impact, health and safety,
and business ethics, aligning with our Code. It
involves both on-site and desk-based audits.
Non-compliant suppliers risk severing theirbusiness relationship with our company,
particularly if they fail to adequately address
our warnings. To support our suppliers, we
provide compliance training on the Code andconsultations to enhance their practices in linewith our ESG priorities.
Each year, we conduct a thorough mapping of
supplier base to identify our critical suppliers,
considering our purchase expenditures andthe potential ESG risks associated with theirindustry, size, and operations. These criticalsuppliers are further categorized into different
groups based on their risk level and are
subject to onsite or desk audits. Additionally,
our supplier auditing program extends to a
subset of our non-critical suppliers, ensuring acomprehensive approach to managing ESG
risks across our supply chain.

Critical Suppliers

Non-Critical SuppliersGroup IGroup IIGroup III

50% on-site audits
and 50% desk

30% on-site audits
and 70% desk

100% desk audits

Our auditing program requires suppliers to
respond to our questionnaires and provide
supporting documentation. Responses areassessed using a system of "veto" and "scored"
criteria. Any negative response in the vetocriteria, such as the potential presence offorced or child labor, results in the immediate
disqualification of the supplier.
Suppliers must attain a minimum score of 60
to pass our audits. Those who fall short of thisrequirement receive warnings and are offeredconsultation to help address the identified
issues. Continued failure to meet our required
standards within a specified period of 1 to 6

5% - 10% on-site
auditsmonthspost-consultation
disqualification.

leads

to

In 2023, we completed 129 supplier ESG audits,
including 29 on-site audits, compared to 122
total audits and 17 on-site audits in 2022. The
major findings in 2023 audits were mostly
pertained to environmental issues, with no
instances of forced or child labor detected.
After consultation and implementing corrective
action plans, all our suppliers passed our ESG
audits. In addition to our own supplier audits,
we plan to do third party RBA VAP audit at one
or two of our polysilicon suppliers in 2024.

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Canadian Solar 2023 Sustainability Report

Conflict Minerals
Conflict minerals refer to certain mineral
resources that are produced in the Democratic
Republic of the Congo (DRC) and its
neighboring countries. According to the U.S.
Department of State, serious human rights
abuses have been inflicted by local armed
forces that mine and trade these minerals tofinance their armed conflicts. To address thisproblem, 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 todisclose information about the usage ofcolumbite-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 of these conflict minerals, as outlined in
our Conflict Minerals Policy (link).This is oneof our key criteria for selecting new suppliers.
All our suppliers must sign a Declaration ofConflict-Free Minerals before contracting withus, especially suppliers of tin-containing

products. After reviewing the materials usedduring the production of our products, we
determined that tin was the only conflictmineral necessary for the functionality or
production of the products that wemanufacture or contract to manufacture
between January 1, 2023, and December 31,
2023. We require our suppliers to describe thesource of the tin used in their products andprovide a confirmation statement to ensurethat the tin used is not sourced from the DRC
or an adjoining country. We do not purchaseraw ore or unrefined conflict minerals, and we
make no purchases in the DRC or its adjoining
countries.
Having taken the above measures, we have noreason to believe that the tin we use may haveoriginated in the DRC or any adjoining country
and we are confident that our production isfree of conflict minerals. We file a Specialized
Disclosure Report, or Form SD, with the U.S.
SEC annually regarding conflict minerals. A
copy of our filed Form SD can be accessed on
SEC or our website (link).

62

Canadian Solar 2023 Sustainability Report
Highlights

About Canadian Solar

Environmental Metrics and Targets

Social Responsibility

Responsible Supply Chain

Governance

About this Report

Appendix

GovernanceThe board of directors (“Board”) at Canadian Solar is responsible for overseeing the management of the company’s businesses and affairs. Our board of directors brings a broad spectrum ofskills and extensive industry knowledge to our company. Together, their diverse expertise is crucial for supervising management performance, ensuring company success, and creating longterm 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 in the best interests of both the Company and our shareholders.

In this Section

63

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

64
65
66
66
67
69
70

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Canadian Solar 2023 Sustainability Report

Board Committees
To effectively fulfill its responsibilities, our Board has established five specialized committees. These include, the Audit Committee, Compensation Committee, and Nominating and Corporate GovernanceCommittee, all chaired and comprised solely of independent board members. These committees convene regularly with our senior management team and external auditor to conduct a comprehensive evaluationof the company's business performance and risk management practices.

Committee Name

Responsibilities

Sustainability Committee

The committee's responsibilities encompass overseeing the Company’s ESG strategy, targets and key performance indicators; reviewing,evaluating, and advising the Board and Management regarding 1) the quality, scope, direction and effectiveness of the Company’s ESG policies,2) the Company’s progress in achieving its ESG goals, including compliance with applicable laws and regulations, industry standards and bestpractices, 3) emerging ESG issues and risks, and reviewing and approving all material disclosure regarding ESG issues, including the Company’s
annual ESG Report.

Audit Committee

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

Compensation Committee

The committee conducts reviews and evaluations of the Company's compensation plans, policies, and programs, and makes revisions, asnecessary.

Nominating and Corporate GovernanceCommittee

The committee identifies suitable candidates for the Board, selects nominees for director elections at the subsequent Annual Meeting of
Shareholders, and identifies candidates to fill any Board vacancies. Additionally, it develops and proposes a set of corporate governanceguidelines and principles for the Board's consideration, which are applicable to the Company. The committee oversees the evaluation of both theBoard 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 matterspertaining to the Company's technology strategy, initiatives, and investments, all in support of the Company's overarching strategy andperformance.

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Canadian Solar 2023 Sustainability Report

Summary of Board Members and Duties
Age

Board
TenureAudit
Committee

Dr. Shawn (Xiaohua) Qu

60

18Leslie Li Hsien Chang(Lead Independent Director)

69

4MemberDr. Harry E. Ruda

65

13

MemberAndrew (Luen Cheung) Wong

66

10

Lap Tat Arthur Wong64

5

Lauren C. Templeton

48

4

Yan Zhuang

60

4Dr. Huifeng Chang

58

4

Average

618Compensation
Committee

Nominating & GovernanceCommittee

Technology
Committee

Sustainability
Committee

MemberMemberMember

Chair

Chair

MemberIndependent/NonIndependentNon-independent

MemberChair

Independent

Independent

MemberIndependent

MemberIndependent

Chair

Chair

IndependentNon-independent

MemberNon-independent65

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Canadian Solar 2023 Sustainability Report

Diversity of the Board of Directors

Board Expertise and Training

Canadian Solar’s Corporate Governance
Guidelines (link) and Nominating andCorporate Governance Committee Charter(link) clearly outline our dedication to board
diversity. We value diversity across various
dimensions, including gender, age, nationality,
culture, professional background, and industry
experience, as we believe it enhances theeffectiveness of Board oversight. During thenomination process, diversity is considered in

Our Board boasts diverse professional
backgrounds
andindustry
experiences,collectively bolstering its capacity to oversee thecompany's overall performance. Our board
members are proficient in many areas,
including solar and storage technologies,
strategy, international operations, corporate
finance, auditing, accounting, capital markets,
investing, research and development, risk
management, marketing management, andcorporate branding. Please refer to our annual
report on Form 20-F (link) for more details.

relation to the Board’s overall composition.
We are continually working towards enhancing
the diversity of our board of directors and aim tomeet Nasdaq’s new Rule 5605(f) on board
diversity within the specified time frame,
considering gender, nationality, ethnicity, age,and expertise. The following represents ourBoard Diversity Matrix, reflecting self-identified
attributes:

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

CanadaForeign Private Issuer

Yes

Disclosure Prohibited Under Home Country Law

No

Total Number of Directors

8
FemaleMale

NonBinary

Board Meeting Attendance

Did Not
Disclose
Gender

PartⅠ: Gender Identity
Directors

1

70Part Ⅱ: Demographic Background
Underrepresented Individual in Home Country
Jurisdiction

7

LGBTQ+

0

Do Not Disclosure Demographic Background1

To ensure that our Board has the right skill sets
and knowledge to act in the best interests ofour stakeholders, we conduct comprehensive
training programs. These cover a broad
spectrum of areas such as securities laws in the
U.S., where the Company is listed, and Canada,
where the Company is legally domiciled.
Additional continuing education training
ensures that each Board member remain
abreast of developments and best practices incorporate governance as well as theircommittee assignments and other Board
responsibilities.

0

In 2023, our board of directors held a total of
fifteen Board meetings, and twenty-threecommittee meetings. Additionally, they passed
66 resolutions with unanimous writtenconsent. Both Board and committee meetings

maintained a flawless attendance rate of 100%in 2023, a testament to our board members'
dedication and commitment to fulfilling theirroles and responsibilities.

Mandate from the Board for Third Party
Audit of our Operations and Supply Chain
In May 2022, our Board passed a resolution
mandating a third-party assessment, at areasonable cost, on the extent to which
Canadian Solar’s policies and procedures
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 andRights at Work, and ILO Forced Labor
Convention 1930 (No. 29).

In response, the Company engaged RBA to
conduct VAP audits at our operations andsuppliers. The VAP audit is an extensive on-site
review carried out by an RBA-accredited
auditing firm, verifying a company’s compliancewith the RBA Code of Conduct (link) throughdocument reviews, facility tours, and employee
interviews. This on-site audit covers labor
practice (including no force labor), health andsafety, environment, ethics, and management
systems. The RBA audit is an industry gold
standard in manufacturing facility on-site
evaluations.

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Canadian Solar 2023 Sustainability Report

GovernanceIn 2023, we initiated an RBA VAP audit at our
module manufacturing facility in Thailand andearned a silver-level recognition, demonstrating
full compliance with the “Freely Chosen
Employment” rules, in other words, nopresence of forced labor. In 2024, we haveinitiated an RBA VAP audit at our cell factory in
Suqian, Jiangsu Province, China. The auditing
agreement has been signed and we are working

with RBA to schedule the onsite audit date. In
addition, we plan to do another RBA VAP audit
at one of our ingot factories in Qinghai
Province, China commencing in 2024.
Meanwhile, one of our polysilicon suppliers has
initiated an RBA VAP audit at our request. This
supplier is operated in Qinghai Province, China.
The RBA VAP auditing process is lengthy andmay take several months to complete.

Executive Management
Our Chief Sustainability Officer (CSO), Ms.
Hanbing Zhang, is responsible for shaping andexecuting our sustainability strategy. She leads
an ESG working group that comprises
representatives from various departments suchas strategy, EHS, HR, R&D, certifications,investor relations, global marketing, and project
development. The group actively engages withexternal advisors on implementing our ESG
strategy, ensuring we stay abreast of the latest
ESG regulatory requirements and disclosure

standards. The ESG team collaborates closelywith the Company’s management team tointegrate ESG strategies into the Company’s
strategic decision-making process. This includes
incorporating sustainability targets, such as
those on environmental metrics, into ouroperational team's KPIs. Ms. Zhang also
communicates with the Board’s Sustainability
Committee, offering periodic updates on the
progress and initiatives tied to our sustainability
targets.

Dr. Shawn Qu Visiting Our Walnut Creek Office67

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Canadian Solar 2023 Sustainability Report

Executive Management Team*
Title

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)

Dr. Shawn (Xiaohua) Qu

Chairman and CEO
Canadian Solar Inc.

Hanbing Zhang

Chief Sustainability Officer
CSI Solar Co., Ltd.

Yan Zhuang

President
CSI Solar Co., Ltd.

Ismael Guerrero Arias

Chief Executive Officer
Recurrent Energy, LLC

Inés Arrimadas

Chief Communications and ESG Officer
Recurrent Energy, LLC

Thomas Koerner

Corporate Senior VP, Global Sales,
CSI Solar Co., Ltd.

General Manager North America of Astronergy (the solar division of the Chint Group)
Prokurist and Head of Sales Operations, Sourcing and Product Management Solar at Schuco Solar

Xinbo Zhu

Senior VP and Chief Financial Officer
Canadian Solar Inc.

Chief Supply and Risk Officer of Recurrent Energy
Vice President and Finance Controller of Canadian Solar
Finance Director of Vishay Intertechnology

Dr. Huifeng Chang

Senior VP and Chief Strategy Officer
Canadian Solar 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 York

Linhong Gao

Chief Financial Officer
CSI Solar Co., Ltd.

Guangchun Zhang

Senior VP
CSI Solar Co., Ltd.

*For details on executive compensation, please refer to Canadian Solar Inc.’s annual report on Form 20-F (li﻿nk)

Global Head of Marketing at Canadian Solar
Founder and President of Women in Solar Energy (WISE)

Head of Asia of Hands-on Mobile, Inc.
Asia Pacific regional director of marketing, planning, and consumer insight at Motorola Inc.

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
Spokesperson of the centrist political party Ciudadanos at Congress of Deputies in Spain and opposition
leader in the Parliament of Catalonia
Consultant in areas such as employment, European Funds, territorial development, and new technologies

Finance Director of China Grand Enterprises

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

68Governance

Canadian Solar 2023 Sustainability Report

Ethical Business Conduct
Canadian Solar is dedicated to maintaining the highest standards of business ethics. Our Code of Business Conduct and Ethics applies to all directors, officers and employees ofCanadian Solar and its subsidiary entities.
Outlined below is a summary of our principal governance documents and guidelines:

PolicyCode of BusinessConduct and Ethics(link)

Whistleblower Policy(link)

Insider Trading Policy(link)

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 reportingand disclosure, fraudulent activity, breaches of compliancepolicies, etc. to the Board
Protection from retaliation for whistleblowers
Anonymous reporting and confidentiality

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 and discrimination-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 forenvironmental 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 of conflict minerals illegally produced in the
Democratic Republic of the Congo and its neighbors

Procedure for preventing insider trading

Related-Party
Transactions (link)

Policy and procedures on reporting, approval, and disclosure of
related-party transactions

Anti-Corruption
Policies

Prohibition against giving bribes (link)
Prohibition against accepting bribes (link)69

Governance

Canadian Solar 2023 Sustainability Report

Business Ethics Awareness and ComplianceTrainings
At Canadian Solar, we ensure that all our employees are well-informed and trained on ourcompliance policies, which are publicly available on our website (link). We conduct annual training
sessions for all employees. These sessions cover key definitions, responsibilities of Canadian Solar
employees, supplier expectations, among other topics. As part of our thorough training process,we may also administer assessments to measure the successful completion of each training by our
employees. Below are examples of business ethics awareness and compliance training sessions
offered to our employees at Canadian Solar:

Training/Result Review

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

Annual; at least quarterly for
new employees

Data protection

All 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

AnnualCybersecurity
Cybersecurity is paramount at Canadian Solaras we are dedicated to safeguarding our people,
data, and assets. Our approach is proactive andrisk-based,emphasizing
technology
investments,
enhancements,
personnel
development, and process improvements. Our
program is designed and assessed inaccordance with leading industry standards andframeworks,
includingtheInternational
Organization for Standardization (ISO), National

Institute of Standards and Technology (NIST),and Information Technology Infrastructure
Library (ITIL). Meanwhile, we collaborate withthird-party cybersecurity professionals to
conduct security assessments of our enterprisewide cybersecurity practices. This collaboration
includespenetration
testingandtheidentification
of
areas
for
continuous
improvement within our information security
program.

Risk Management
We collect and maintain information in digitalform that is necessary to conduct ouroperations and engage with our customers
and business partners. We are increasingly
dependent on information technology systems
and network infrastructure to operate ourbusiness.
Our information technology organization aims
to employ best practices, including theimplementation of a cybersecurity risk
management program. This program isdesigned to protect the confidentiality,
integrity, and availability of our critical systems
and information. Our cybersecurity risk
management program encompasses several

processes, including, but not limited to, thefollowing:

Cybersecurity incident response plan. The
plan outlines the processes and procedures
necessary for addressing, remediating, andresolvingsecurity
incidents
involving
potential or actual compromises of ourdigital information. The plan also describes
the structure, roles, and responsibilities ofinternal information technology personnel
involved in responding to such incidents andprovides a process for alerting managementof such incidents. The response plan isreviewed on an annual basis and revised asnecessary.

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Canadian Solar 2023 Sustainability Report

Risk Management
Incident detection and prevention. We
have
implemented
anddeployedtechnologies and solutions to assist in theprevention of potential cybersecurity
incidents. These safeguards include,
among other things, intrusion prevention,and detection systems, software patch
management, including anti-virus and antimalware
installations,andongoingvulnerability assessments.
Internal user and third-party information
technology access. We employ various
security
measures,includingdata
encryption, firewalls, email security, andnetwork segmentation with access control
lists to restrict data availability to authorized
systems and networks.

Information
technology
changemanagement and physical security. We
implement safeguards, protocols, andprocedures to protect data integrity, device
vulnerabilities and secure our information
technology infrastructure through network
tools and systems. We aim to enhance
information security by consolidating
business systems and information systems
on integrated platforms. We further conduct
cybersecurity awareness training for our
employees.

Cybersecurity Oversight and GovernanceThe board of directors oversees the Company’srisk management processes directly andthrough its committees. Our cybersecurity risk
management program is integrated into ouroverall enterprise risk management program,and shares common methodologies, reporting
channels and governance processes that apply
across the enterprise risk management
program to other areas, including legal,
compliance, strategic, operational, and financial
risks.
The Nominating and Corporate GovernanceCommittee
overseesmanagement’s
implementation of our cybersecurity risk
management program. The Nominating andCorporate Governance Committee receives
periodic reports from management on our
cybersecurity risks. Additionally, management
updates the Nominating and Corporate
Governance Committee as necessary on any
material cyber security incidents, as well as on
incidents with lesser impact potential. The

Nominating
andCorporate
GovernanceCommittee reports its activities, including thoserelated to cybersecurity, to the full board of
directors.
Our management supervises efforts to prevent,detect, mitigate, and remediate cybersecurity
risks and incidents through various means.
These
includebriefings
frominternal
information technology personnel, utilization of
threat intelligence and insights from external
consultants, and analysis of alerts and reports
generated by security tools within our IT
infrastructure. Our internal IT personnel,
responsible for supporting our information
security program, possess relevant educational
backgrounds and industry experience, often
having previously served in similar positions
within large companies.
Please refer to our annual report on Form 20-F
(link) for our complete disclosure related tocybersecurity.

71Canadian Solar 2023 Sustainability Report
Highlights

About Canadian Solar

Environmental Metrics and Targets

Social Responsibility

Responsible Supply Chain

Governance

About this Report

Appendix

About this Report
Canadian Solar’s Sustainability Report was prepared in accordance with the Sustainability Accounting Standards Board (SASB) framework under the Solar Technology & Project Developers
standards and the Sustainability Reporting Standards (2021 version) issued by the Global Reporting Initiative (GRI), and with reference to the International Financial Reporting Standards (IFRS)
for Sustainability-Related Disclosures issued by the International Sustainability Standards Board (ISSB).
This report was designed to showcase our Environmental, Social, and Governance (ESG) strategy and disclosures, incorporating insights gathered from the investment community and otherstakeholders. Unless specified otherwise, the reporting period detailed in this document extends from January 1, 2023, to December 31, 2023.
Our greenhouse gas emissions inventories for scopes 1, 2, and 3 were calculated according to the methodology recommended by SGS, a globally recognized organization specializing in
inspection, verification, testing, and certification services.
This report represents a collective effort across all departments at Canadian Solar. Special recognition goes to our manufacturing operation teams for their substantial contributions to energy
conservation and waste reduction, as well as their roles in advancing our circular economy initiatives.
My sincere appreciation is extended to the core members of our Sustainability Report project team for their efforts in information collection, data analysis, drafting, editing, and layout design:
Mary Ma, Holly Zhang, Yuan Zhou, Heidi Peng, Angela Zhang, Andrea Zhu, Linda Yin, Huizhen Gao, and Julie Zhang. Their commitment was crucial in ensuring the timely and thoroughdevelopment of this report.
Gratitude is also expressed to those who contributed to the production of this report: Wina Huang, Inés Arrimadas, Cari Collins, Emma Goldfield, Cecilia Tian, Isabel Zhang, Yu Chen, Pauline
Wong, Antonio Adami, Byron Xu, Emma Lenze, Andrew Williams, Katherine Wang, Susan Chen, Gray Fan, Tina Qin, Pauline Levean, Joe Jones, Inmaculada Asencio, Mark Feenstra, and Brian
Bayne.
Finally, I would like to thank our Board members, particularly those on the Sustainability Committee, for their leadership and valuable feedback.
Hanbing Zhang
Chief Sustainability Officer
To provide feedback on our sustainability report, please contact ESG@canadiansolar.com.

72About this Report

Canadian Solar 2023 Sustainability Report

Materiality Assessment and Stakeholder Engagement
Canadian Solar actively engages with bothinternal and external stakeholders to identify
and prioritize ESG topics central to theCompany’s business and stakeholders. Our
materiality assessment incorporates insightsfrom an array of internal stakeholders –including our board of directors, executive
management, employees across our global
operations – and external stakeholders, suchas our customers, suppliers, investors,
creditors,
localcommunities,
industry
associations, NGOs, media outlets, and thescientific community.
This sustainability report outlines key ESG
topics and our strategies and actions based on
our materiality analysis, all of which haveundergone 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 following chart describes Canadian Solar’s
approach to stakeholder engagement in 2023:

Stakeholders

Engagement Methods

Engagement
Frequency

Focus Areas

Employees

Trainings, meetings, emails, surveys,
townhalls

OngoingCompany performance,
responsibility

environmental

impactandsocialCustomers

Meetings, emails, conferences, tradeshows, technical workshops

OngoingCompany performance, product quality, social responsibility,
supplier assessments

Suppliers

Meetings, emails, conferences, tradeshows, technical workshops, surveys,
auditsOngoingCompany performance, product quality, procurement practices

Investors/Shareholders

Meetings, earnings calls, emails,
conferences, roadshows

OngoingCompany performance, ESG performance

Creditors

Meetings, emails, conferences, tradeshows

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, tradeshows

OngoingCompany performance, ESG performance

Local Communities

Community presentations andmeetings, 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, technicalworkshops

Ongoing

Product quality, environmental impacts, social responsibility, job
creation, supplier assessment73

Canadian Solar 2023 Sustainability Report
Highlights

About Canadian Solar

Environmental Metrics and Targets

Social Responsibility

Responsible Supply Chain

Governance

About This Report

Appendix

Appendix: Global Reporting Frameworks

In this Section

74

SASB Index
IFRS Disclosures
GRI Metrics

75
77
79

74

Appendix

Canadian Solar 2023 Sustainability Report

SASB Content Index
Topic

Accounting Metric

Category

Unit of Measure

Code

Response

EnergyManagement in
Manufacturing(1) Total energy consumed

Quantitative

Gigajoules (GJ)

RR-ST-130a.1

12,225,091

Water Management in
Manufacturing

Hazardous
Waste
Management

Ecological Impacts of Project
Development(2) Percentage grid electricity

Percentage (%)98(3) Percentage renewable

Percentage (%)

1.3 (only including solar energy generation on site forself-consumption).
The percentage would be 33% if including renewableelectricity from the grid

Thousand cubic meters (m³)

14,857(1) Total water consumed

Thousand cubic meters (m³)5,544(2) Total water withdrawn, percentage of each inregions with High or Extremely High Baseline
Water Stress

Percentage (%)34(2) Total water consumed, percentage of each inregions with High or Extremely High Baseline
Water Stress

Percentage (%)42(1) Total water withdrawn

Quantitative

Description of water management risks anddiscussion of strategies and practices to mitigate
those risks

Discussion and Analysisn/a

RR-ST-140a.2

2023 Sustainability Report, Environmental Metrics andTargets, Water Risk Management Strategy, p.30

Amount of hazardous waste generated

Quantitative

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

13.7

Hazardous waste percentage recycled

Quantitative

Percentage (%)

RR-ST-150a.1

3.3

Number and the aggregate quantity of reportablespillsNumber0

Spills quantity recovered

Kilograms (kg)0

Number and duration of project delays related toecological impacts

Quantitative

Number, Days

RR-ST-160a.1

None

Description of efforts in solar energy systemproject development to address community andecological impacts

Discussion and Analysisn/a

RR-ST-160a.2

2023 Sustainability Report, Environmental Metrics,
Environmental Stewardship in Project Development andOperations and Maintenance, p.35-37

75

Appendix

Topic

Canadian Solar 2023 Sustainability Report

Accounting Metric

Category

Unit ofMeasureCode

Response

Management ofEnergyInfrastructure
Integration &RelatedRegulations

Description of risks associated with integration of solar energy Discussion and Analysis
into existing energy infrastructure and discussion of efforts tomanage those risksn/a

RR-ST-410a.1

2023 Sustainability Report, Social Responsibility, Making the Difference
through Community Commitment, p.55-57

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

2023 Sustainability Report, Social Responsibility, Making the Difference
through Community Commitment, p.55-57

Product End-of-life
Management

Percentage of products sold that are recyclable or reusable

Quantitative

Percentage (%)

RR-ST-410b.1

2023 Sustainability Report, Environmental Metrics and Targets, ProductEnd-of-Life Management and Recycling, p.33

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

Quantitative

Metric tons (t),Percentage (%)

RR-ST-410b.2

2023 Sustainability Report, Environmental Metrics and Targets, ProductEnd-of-Life Management and Recycling, p.33

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

Quantitative

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 recycling

Quantitativen/a

RR-ST-410b.4

2023 Sustainability Report, Environmental Metrics and Targets, ProductEnd-of-Life Management and Recycling, p.33

Description of the management of risks associated with theuse of critical 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
associated with the polysilicon supply chain

Discussion and Analysis

n/aMaterials Sourcing

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.

76

Appendix

Canadian Solar 2023 Sustainability Report

IFRS S2IFRS S2 Recommended Disclosures

Response

GovernanceA) Describe the governance body(s) or individual(s) responsible for oversight of climate-related risks and 2023 Sustainability Report,
opportunities.
1) Environmental Metrics and Targets, Climate-Related Risks and Opportunities, p.38
2) Governance, Sustainability Committee, p.64
B) Describe management’s role in the governance process, controls and procedures used to monitor,
manage, and oversee climate-related risks and opportunities.

2023 Sustainability Report, Governance, Executive Management, p.67-68

StrategyA) Describe the climate-related risks and opportunities that could reasonably be expected to affect thecompany over the short, medium, and long term and explain whether the risk is considered a climaterelated physical risk or climate-related transition risk

2023 Sustainability Report,
Environmental Metrics and Targets, Climate-Related Risks and Opportunities, p.38

B) Explain how the company defines “short term”, “medium term” and “long term” and how thesedefinitions are linked to the planning horizons used by the entity for strategic decision-making

2023 Sustainability Report,
Environmental Metrics and Targets, Climate-Related Risks and Opportunities, p.38

C) Describe the current and anticipated effects of climate-related risks and opportunities on thecompany’s business model and value chain (including where they are concentrated); and the company’s
strategy and decision-making

2023 Sustainability Report,
Environmental Metrics and Targets, Climate-Related Risks and Opportunities, p.38

D) Describe quantitative and qualitative information about the current and anticipated effects ofclimate-related risks and opportunities on the company’s financial position, financial performance, andcash flows over the short, medium, and long term with reference the company’s financial planning2023 Sustainability Report,
Environmental Metrics and Targets, Climate-Related Risks and Opportunities, p.38

E) Describe how the company has and plans to respond to, climate-related risks and opportunities in its
strategy and decision-making, including how it plans to achieve and resource any climate-related
targets it has set or is required to meet by law or regulation. Provide qualitative and quantitative
information about the progress of such plans.

2023 Sustainability Report,
Environmental Metrics and Targets, Climate-Related Risks and Opportunities, p.38

F) Describe the climate resilience of the company’s strategy and business model to climate-relatedchanges, developments, and uncertainties with reference to the identified climate-related risks andopportunities using climate-related scenario analysis

2023 Sustainability Report,
Environmental Metrics and Targets, Climate-Related Risks and Opportunities, p.38

Risk ManagementA) Describe the company’s processes and related policies for identifying, assessing, prioritizing, and2023 Sustainability Report,monitoring climate-related risks, including whether and how the company uses climate-related scenario 1) Environmental Metrics and Targets, Climate-Related Risks and Opportunities, p.38
to inform its identification of climate-related opportunities.
2) Governance, Executive Management, p.67-68
C) Describe the extent to which and how processes for identifying, assessing, and managing climaterelated risks are integrated into the company’s overall risk management process.

2023 Sustainability Report, Governance1) Sustainability Committee, p.64
2) Executive Management, p.67-68

77Appendix

Canadian Solar 2023 Sustainability Report

Metrics and Targets
A) Disclose the metrics and targets used by the company to assess climate-related risks andopportunities, including progress towards any climate-related targets it has set and any targets it isrequired to meet by law or regulation

2023 Sustainability Report,
1) Environmental Metrics and Targets, Climate-Related Risks and Opportunities, p.18-36
2) Governance, Sustainability Committee, p.64

B) Disclose the company’s absolute gross scope 1, scope 2, and scope 3 greenhouse gas (GHG)
emissions in accordance with the Greenhouse Gas Protocol: A Corporate Accounting and ReportingStandard (2004) and the Greenhouse Gas Protocol Corporate Value Chain (Scope 3) Accounting andReporting Standard (2011) and the approach it uses to measure emissions.

2023 Sustainability Report,
Governance, Executive Management, p.67-68

C) Disclose the amount of capital expenditure, financing or investment deployed towards climaterelated risks and opportunities and internal carbon prices, if any

2023 Sustainability Report,
Environmental Metrics and Targets, Climate-Related Risks and Opportunities, p.38

D) Disclose the quantitative and qualitative climate-related targets set by the company to monitor
progress towards achieving its strategic goals as well as to fulfil any legal or regulatory requirements

2023 Sustainability Report,
Environmental Metrics and Targets, Climate-Related Risks and Opportunities, p.38

E) Describe the company’s approach to setting and reviewing each target; how it monitors progressagainst each target; and its performance against each climate-related target with reference to past
performance

2023 Sustainability Report,
Environmental Metrics and Targets, Climate-Related Risks and Opportunities, p.38

78

Appendix

Canadian Solar 2023 Sustainability Report

Global Reporting Initiative Metrics
Statementof useCanadian Solar has reported the information cited in this GRI content index forthe period January to December 2023, unless otherwise specified, in accordance
to the GRI standards.

GRI 1 used

GRI 1: Foundation 2021

Applicable
GRI Sector
Standard(s)Not applicable

GRI 2: General Disclosures
2-1
2-1

Report its legal
nameReport its nature of Investor-owned corporation, NASDAQ: CSIQ
ownership and legal
form
Report the locationof its headquarters

Guelph, Ontario, Canada

2-1

Report its countriesof operation

2023 Sustainability Report, About Canadian Solar, p.8

2-2

Entities included in
the organization’ssustainability
reporting2023 Sustainability Report, About Canadian Solar, p.8

2-3

Reporting period,
frequency andcontact point

Reporting period: January 1 to December 31, 2023, unlessotherwise statedFrequency: annual
Contact point: ESG@canadiansolar.com

2-5

Restatements of
information

External assurance

Activities, value chain
and other business
relationships

2023 Sustainability Report,
1) About Canadian Solar, p.7-82) Environmental Metrics and Targets, Environmental
Stewardship in Project Development and Operations andMaintenance, p.35
3) Responsible Supply Chain, Supplier ESG Audits, p.61
2023 Annual Report (link), Results of Operations, p.98-101

2-7

Employees2023 Sustainability Report, Social Responsibility, Working at
Canadian Solar, p.42

2-8Workers who are not
employees2023 Sustainability Report, Social Responsibility, Working at
Canadian Solar, p.42

2-9

Governance structure
and composition

2023 Sustainability Report, Governance,
1) Board Committees, p.64
2) Board Members and Duties, p.65

2-10Nomination and2023 Sustainability Report, Governance, Board Committees,
selection of the highest p.64-65
governance body

2-11

Chair of the highest
governance body2023 Sustainability Report, Governance, Board Committees,
p.64-65

2-12Role of the highest
governance body inoverseeing themanagement of
impacts2023 Sustainability Report, Governance, Board Committees,
p.64-65

2-13

Delegation of
responsibility for
managing impacts

2023 Sustainability Report, Governance,
1) Board Committees, p.64-65
2) Executive Management, p.67-68

2-14

Role of the highest
2023 Sustainability Report, Governance, Board Committees,
governance body inp.64
sustainability reporting

2-15

Conflicts of interest

Canadian Solar Inc.

2-1

2-4

2-6

None

2023 Sustainability Report, Governance, Ethical BusinessConduct, p.69
Code of Business Conduct and Ethics (link)

2023 Sustainability Report, About this Report, p.72

79

Appendix

Canadian Solar 2023 Sustainability Report

GRI 2: General Disclosures
2-16

2-17

2-18

2-22

2-23

2-24

2-25

2-26

Communication ofcritical concerns

Collective knowledge ofthe highest governancebody2023 Sustainability Report,
1) Social Responsibility, Grievance Procedure and Zero
Tolerance for Retaliation, p.49,
2) Whistleblower Policy (link)
2023 Sustainability Report, Governance,
1) Board Committees, p.64-65
2) Board Expertise and Training, p.66

Evaluation of the2023 Sustainability Report, Governance, Board
performance of theCommittees, p.64
highest governance bodyStatement on
2023 Sustainability Report,sustainable development 1) Message from the Chief Executive Officer, p.3
strategy2) Highlights, p.4-63) Governance, Executive Management, p.67-68
Policy commitments

Embedding policy
commitments

2023 Sustainability Report,
1) About Canadian Solar, Sustainability at Canadian Solar,
p.92) Governance, Ethical Business Conduct, p.68
2023 Sustainability Report,
1) About Canadian Solar, Sustainability at Canadian Solar,
p.92) Social Responsibility, Making the Difference throughCommunity Commitment, p.55-57
3) Responsible Supply Chain, Supplier Code of Conduct,
p.614) Governance, Ethical Business Conduct, p.68
5) Supplier Code of Conduct (link)

Processes to remediate
negative impacts

2023 Sustainability Report, Social Responsibility,
1) Grievance Procedure and Zero Tolerance for
Retaliation, p.49
2) Whistleblower Policy (link)

Mechanisms for seeking
advice and raisingconcerns2023 Sustainability Report, Social Responsibility,
1) Grievance Procedure and Zero Tolerance for
Retaliation, p.49
2) Whistleblower Policy (link)

2-27

Compliance with laws
and regulations

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

2-28

Membershipassociations

2023 Sustainability Report, Social Responsibility, NonGovernmental Organizations and Memberships, p.58

2-29

Approach to stakeholder
engagement

2023 Sustainability Report, About this Report, Materiality
Assessment and Stakeholder Engagement, p.73

2-30

Collective bargaining
agreements

2023 Sustainability Report, Social Responsibility, Freedomof Association and Collective Bargaining, p.49

GRI 3: Material Topics
3-1

Process to determinematerial topics

2023 Sustainability Report, About this Report, Materiality
Assessment and Stakeholder Engagement, p.73

3-2

List of material topics

2023 Sustainability Report, About this Report, Materiality
Assessment and Stakeholder Engagement, p.73

3-3Management of material 2023 Sustainability Report, About this Report, Materiality
topicsAssessment and Stakeholder Engagement, p.73

GRI 201: Economic Performance
201-1

Direct economic value
generated anddistributed

2023 Sustainability Report,
1) About Canadian Solar, Approach to Environment,
Health, and Safety (EHS), p.12
2) Social Responsibility, Share Compensation Plan, p.46
2023 Annual Report (lin﻿k), Results of Operations, p.98-101

201-2

Financial implications
and other risks andopportunities due toclimate change

2023 Sustainability Report, Environmental Metrics andTargets, Climate-Related Opportunities and Risks, p.38-39

GRI 203: Indirect Economic Impacts
203-1

Infrastructure2023 Annual Report (lin﻿k), p.63-66, 92-96; p.F4, F-13, F-15,
investments and services F18-20, F63
supported

203-2

Communication andtraining about anticorruption policies andprocedures

2023 Sustainability Report,
1) Climate-Related Risks and Opportunities, p.38-39

80

Appendix

Canadian Solar 2023 Sustainability Report

GRI 205: Anti-corruption
205-1

Operations assessed forrisks related tocorruption

2023 Sustainability Report, Governance, Ethical BusinessConduct, p.68
Prohibition against Giving Bribes (link)
Prohibition against Accepting Bribes (link)

205-2

Communication andtraining about anticorruption policies andprocedures

2023 Sustainability Report,
Governance,
1) Ethical Business Conduct, p.68
2) Business Ethics Awareness and Compliance Trainings,
p.61
Prohibition against Giving Bribes (link)
Prohibition against Accepting Bribes (link)

205-3

Confirmed incidents ofcorruption and actions
taken

302-3

Energy intensity

Unit: MWh/MW
Ingot production: 54.33
Wafer production: 10.83
Cell production: 60.70
Module production: 15.57

302-4

Reduction of energy
consumption

2023 Sustainability Report, Environmental Metrics andTargets, Energy Intensity, p.26-28

302-5

Reductions in energy
requirements ofproducts and services

2023 Sustainability Report, Environmental Metrics andTargets, Module Carbon Footprint Improvement, p.25

GRI 303: Water and Effluents
303-1

Interactions with water
as a shared resource

2023 Sustainability Report, Environmental Metrics andTargets, Water Intensity, p.29-31

303-2

Management of water
discharge-related
impacts2023 Sustainability Report, Environmental Metrics andTargets, Water Intensity, p.29-31

303-3

Water withdrawal

14,857 thousand cubic meters (m³)

303-4Water discharge

9,309 thousand cubic meters (m³)

303-5Water consumption

5,544 thousand cubic meters (m³)

None

GRI 206: Anti-competitive Behavior
206-1

Legal actions for antiNone
competitive behavior,anti-trust, and monopoly
practices

GRI 302: Energy
302-1

302-2

Energy consumption
within the organization

Energy consumption
outside of theorganization

GRI 304: Biodiversity
Unit: Gigajoules (GJ)
Total energy consumption: 12,225,091
Gas: 24,057
Diesel: 4,287
Gasoline: 3,109
Steam: 113,323
Grid electricity: 11,926,271
Solar PV electricity: 154,044
Environmental Metrics and Targets, Greenhouse Gas
Emissions, Scope 3 emissions, p.23

304-2

Significant impacts ofactivities, products andservices on biodiversity

2023 Sustainability Report,
1) Environmental Metrics and Targets, Environmental
Stewardship in Project Development and Operations andMaintenance, p.35-37
2) Social Responsibility, Non-Governmental Organizations
and Memberships, p.58

304-3

Habitats protected or
restored2023 Sustainability Report,
1) Environmental Metrics and Targets, Environmental
Stewardship in Project Development and Operations andMaintenance, p.35-37
2) Social Responsibility, Non-Governmental
Organizations and Memberships, p.58

81

Appendix

Canadian Solar 2023 Sustainability Report

GRI 305: Emissions
305-1

Direct (Scope 1) GHG
emissions

54,982 metric tons of CO₂ equivalent (tCO₂eq)

305-2

Energy indirect (Scope 2)
GHG emissions

Location-based: 2,274,291 metric tons of CO₂ equivalent(tCO₂eq)
Market-based: 2,260,125 tCO₂eq

305-3

Other indirect (Scope 3)
GHG emissions

803,362 metric tons of CO₂ equivalent (tCO₂eq)

GHG emissions intensity

Unit: tCO₂eq/MW
Ingot production: 42.1
Wafer production: 6.3
Cell production: 38.2
Module production:10.1

305-4

305-5

305-7

Reduction of GHG
emissions2023 Sustainability Report, Environmental Metrics andTargets, Greenhouse Gas Emissions, p.22-24

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

Unit: metric tons (t)Nitrogen oxides (NOₓ): 16.7
Sulfur oxides (SOₓ): 0.4
Fine dust (PM10): 19.7
Hazardous air pollutants (HAP): 18.3
Volatile organic compounds (VOC): 29.9
Persistent organic pollutants (POP): 0
Other standard air emissions: 20.2

GRI 306: Waste

306-1

306-2

306-3

Waste generated

Unit: Metric kilotons (kt)Disposed hazardous waste: 7.2
Recycled or reused hazardous waste: 6.5
Disposed non-hazardous waste: 15.2
Recycled or reused non-hazardous: 170.1

306-4

Waste diverted from
disposal

2023 Sustainability Report, About Canadian Solar,
Environmental Metrics and Targets, Waste Intensity,
p.31-32306-5

Waste directed to disposal 2023 Sustainability Report, About Canadian Solar,
Environmental Metrics and Targets, Waste Intensity,
p.31-32

GRI 308: Supplier Environmental Assessment
308-1

New suppliers that werescreened using
environmental criteria

2023 Sustainability Report, Responsible Supply Chain,
Supplier ESG Audits, p.61

308-2

Negative environmental
impacts in the supply
chain and actions taken

The major findings from our 203 audits were mostly
pertained to environmental issues, with no instances offorced or child labor detected. After consultation andimplementing corrective action plans, all our suppliers
passed our 2023 ESG audits.

GRI 401: Employment
401-3

Parental leave

2023 Sustainability Report, Social Responsibility, Worklife-balance, p.48

GRI 403: Occupational Health and Safety

Waste generation andsignificant waste-related
impacts2023 Sustainability Report,
1) About Canadian Solar, Understanding theEnvironmental Impact of Manufacturing, p.20
2) Environmental Metrics and Targets,
Waste Intensity, p.31-32
Climate-Related Risks and Opportunities, p.38

Management ofsignificant waste-related
impacts2023 Sustainability Report,
1) About Canadian Solar, Approach to Environment,
Health, and Safety (EHS), p.12
2) Environmental Metrics and Targets,
Waste Intensity, p.31-32
Climate-Related Risks and Opportunities, p. 38

403-1

Occupational health andsafety management
system2023 Sustainability Report, Social Responsibility,
Occupational Health and Safety, p.50

403-2

Hazard identification, risk
assessment, and incident
investigation

2023 Sustainability Report, Social Responsibility,
Hazardous Materials and Environmental Management,
p.51

403-3

Occupational healthservices2023 Sustainability Report, Social Responsibility,
Occupational Health and Safety, p.50

403-4

Worker participation,
consultation, andcommunication on
occupational health andsafety2023 Sustainability Report, Social Responsibility,
Occupational Health and Safety, p.50

82

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Canadian Solar 2023 Sustainability Report

Worker training on
occupational health andsafety2023 Sustainability Report, Social Responsibility,
Occupational Health and Safety, p.50

403-6

Promotion of worker
health2023 Sustainability Report, Social Responsibility,
Occupational Health and Safety, p.50

403-7

Prevention andmitigation ofoccupational health andsafety impacts directly
linked by business
relationships

403-8

Workers covered by an
occupational health andsafety management
system2023 Sustainability Report, Social Responsibility,
Occupational Health and Safety, p.50

Work-related injuries

2023 Sustainability Report, Social Responsibility,
Occupational Health and Safety, p.50

Work-related ill health2023 Sustainability Report, Social Responsibility,
Hazardous Materials and Environmental Management,
p.51

403-5

403-9

403-102023 Sustainability Report, Social Responsibility,
Occupational Health and Safety, p.50

GRI 406: Non-discrimination
406-1

GRI 407: Freedom of Association and Collective Bargaining

407-1

Operations and suppliers
in which the right tofreedom of associationand collective bargaining
may be at risk

2023 Sustainability Report,
1) Social Responsibility, Freedom of Association andCollective Bargaining, p.49
2) Responsible Supply Chain, Supplier ESG Audits, p.61

408-1

Operations and suppliers
at significant risk forNone
incidents of child labor

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.
2023 Sustainability Report, Responsible Supply Chain,
1) Anti-Modern Slavery Initiatives, p.60-61
2) Supplier ESG Audits, p.61

GRI 411: Rights of Indigenous Peoples

404-1

Average hours of
training per year per
employee

21.9 hours per employee for 2023
2023 Sustainability Report, Social Responsibility,
On-the-Job Training, p.48

404-2

Programs for upgrading
employee skills andtransition assistanceprograms

2023 Sustainability Report,
Social Responsibility,
Talent Strategy, Training and Development, p.46-47

404-3

Percentage of employees
receiving regular
100% of full-time employees
performance and careerdevelopment reviews

411-1

2023 Sustainability Report,
1) Social Responsibility, Diversity, Equity, and Inclusion,
p.42-442) Governance, Diversity of the Board of Directors, p.66

Incidents of violations
involving rights ofindigenous peoples

None

GRI 413: Local Communities

413-1

2023 Sustainability Report,
Operations with local
1) Environmental Metrics, Environmental Stewardship in
community engagement, Project Development and Operations and Maintenance,
impact assessments, and p.35-37
development programs2) Social Responsibility, Making a Difference throughCommunity Commitment, p.55-57

413-2

Operations withsignificant actual andpotential negative
impacts on local
communities

GRI 405: Diversity and Equal Opportunity
Diversity of governancebodies and employees

None

GRI 408: Child LaborGRI 404: Training and Education

405-1

Incidents of
discrimination andcorrective actions taken

None

83

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Canadian Solar 2023 Sustainability Report

GRI 414: Supplier Social Assessment
414-1

New suppliers that werescreened using social
criteria

2023 Sustainability Report, Responsible Supply Chain,p.59-61414-2

Negative social impacts
in the supply chain andactions taken

2023 Sustainability Report, Responsible Supply Chain,p.59-61

GRI 416: Customer Health and Safety

416-1

Assessment of the health2023 Sustainability Report,
and safety impacts of1) About Canadian Solar, Approach to Environment,
product and service
Health, and Safety (EHS), p.12
categories

GRI 417: Marketing and Labeling
417-1

Requirements for
product and service
information and labeling2023 Sustainability Report,
Environmental Metrics and Targets, Understanding theEnvironmental Impact of Manufacturing, p.20

417-2

Incidents of noncompliance concerning
product and service
information and labeling

None

417-3

Incidents of noncompliance concerningmarketingcommunications

None

GRI 418: Customer Privacy

418-1

Substantiated complaints
concerning breaches ofNonecustomer privacy andlosses of customer data84

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