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Notes:

TRIR and LTIR rates are calculated using the 200,000-multiplication factor, which represents the total number of hours 100 employees would work in a year (100 workers x 40 hours x 50 weeks).

SolarEdge working hours are based on actual hours worked for all employees where available, representing the majority of the total workforce. For the remaining employees, best estimates were used, based on average hours worked in the locations measured.

Coverage includes all company employees based in all operational facilities and marketing and sales offices around the world. Contractor employee incidents are tracked and reported for the same global boundaries. The reported safety incidents include all on-site incidents and job-related traffic incidents. 

TRIR and LTIR rates exclude contractor employees and include only company employees, due to data limitations regarding the work hours of our contractor employees. Nevertheless, we monitor and report all safety incidents related to our contractor employees, provide them with needed safety training and equipment, and act to prevent any risk to their personal health and safety.

See section: Health & Safety for an explanation on the increase in TRIR and LTIR rate in 2023, compared with 2022.

GRI 403-9: Work-related injuries

GRI 302-1: Energy consumption within the organization
GRI 302-3: Energy intensity

Note:

GRI 305-7: Nitrogen oxides (NOx), sulfur oxides (SOx), and other significant air emissions

The NOx emissions reported above are relevant only from 2022 with our newly opened Sella 2 site in South Korea. VOCs, PM and NMHC emissions were measured and reported from 2023 and onwards. The above reported emissions are measured and reported in accordance with local regulations and relevant for the manufacturing sites we own in Israel, South Korea and Italy.  Emissions that do not require monitoring by local regulations (for example: SOx and HAP) are not measured and are considered negligible.

Due to the minor measured amounts of the emissions reported above, we do not consider these air emissions to hold a material environmental impact in relation to our activities. For that reason, we have not set reduction targets for these emissions.

Note:

GRI 305-3: Other indirect (Scope 3) GHG emissions

The Scope 3 emissions reported above only relate to the electricity used by our contract manufacturers for producing SolarEdge products. These emissions form a part (but not all) of our Category 1 Purchased Goods and Services. We aim to expand our Scope 3 inventory going forward.

Scope 3 emissions decreased in 2023, despite the overall increase in production experienced that same year. The emission decrease was achieved by the recent insertion of renewable energy certificates, representing the majority of the annual electricity consumption at one of our contract manufacturer sites in China.

Note:

GRI 306-3: Waste generated
GRI 306-4: Waste diverted from disposal
GRI 306-5: Waste directed to disposal

Hazardous waste quantities have increased in 2023 due to increased production and a revised method of waste measurement at the Sella 2 site in Korea.

We have recorded an increase of non-hazardous waste in 2022 due to electronic and battery waste at several of our global sites as a result of activity growth during 2022. The output of non-hazardous waste at our Israeli sites increased in 2023, as a result of a parallel increase in the number of employees at those sites. An increase in non-hazardous cardboard, paper and wood waste was attributed to increased production at our Sella 1 site during 2023.

The grand majority of increased production waste in 2022 and 2023 was treated by recycling or by incineration with energy recovery. This caused a parallel increase in the rate by which we diverted waste from landfills to recycling or energy recovery.

Note:

GRI 303-3: Water withdrawal  
GRI 303-4: Water discharge
GRI 303-5: Water consumption

Over 99% of water used at SolarEdge operated sites is withdrawn from municipal water supplies. The remaining <1% is constituted of bottled water consumed at one of our sites.

The discharge of sanitary and kitchen water from our office locations is not currently measured and is therefore excluded from the water discharge figure above.

Water consumption in the table above is calculated by subtracting the annual water discharge from the water withdrawal and excludes internally recycled water.

Water consumption reported for contract manufacturer sites, was specifically used in the production of SolarEdge products. Data on water consumption from our newest site, opened in late 2023 in Austin, Texas, is excluded from the above reporting. We are currently working with our contract manufacturer to complete water consumption measurements from this site, specific to SolarEdge related production, in order to include that data in future reports.

The increase in water withdrawal during 2022 and 2023, and the related increase in water discharge are attributed to the Sella 2 site in Korea that was opened in May 2022, as it increased its level of production throughout 2023.

The vast majority of the water discharged by SolarEdge is attributed to the production at our Sella 2 site. Here, water is mainly used in cooling processes and has no contact with the site’s chemical process. There is a minor amount of anti-corrosion material added to the water. This cooling water is discharged to a local wastewater treatment facility, which discharges the same water to the local river post-treatment. Since the same amount of water is returned to the source river with negligible effects on water quality, we consider Sella 2 water usage to have minor environmental impact. Due to the minimal environmental impact of the wastewater reported above, we do not consider water pollutants in wastewater as material in relation to our activities. For that reason, we have not set reduction targets.

For the sake of disclosure in this report, the terms ‘water recycling’ and ‘water reusage’ are used interchangeably. See the ‘Water efficiency’ section for details on how water is being recycled/reused at our Sella 1 and Sella 2 sites.

Note:

GRI 305-1: Direct (Scope 1) GHG emissions
GRI 305-2: Energy indirect (Scope 2) GHG emissions
GRI 305-4: GHG emissions intensity

GHG emissions use IEA 2021 and AIB European Residual Mix 2022 conversion factors, except for Israel (IEC- Israel Electric Corporation, 2022), U.S. (eGrid 2022 factors for subregions WECC California, WECC Northwest, and ERCT All) and supplier specific factors when available.

GHG gas emissions include carbon dioxide (CO₂), methane (CH₄) and nitrous oxide (N₂O).

Refrigerant gas (HFC)emissions are only included in our sustainability report from 2022 and onwards, as data was not previously available. However, these emissions formed only 0.3% (26 MT CO₂e) of the total Scope 1 emissions in 2023, with almost all (99.7%) of Scope 1 emissions still related to fuel consumption.

Scope 2 emissions are reported using a market-based method. Solar PV generated power is reported with zero related emissions.

The 2022 and 2023 increases in electricity and natural gas consumption, and the related increase in Scope 1 and 2 emissions, are attributed to the Sella 2 site in Korea that initiated operations in May 2022 and has increased production during 2023.

GRI 412-3 Significant investment agreements and contracts that include human rights clauses or that underwent human rights screening

Our Supplier Code of Conduct includes detailed requirements regarding various ESG fields, including ethics, environmental protection, safety, responsible upstream sourcing, and the protection of human rights. To date, more than 230 active suppliers have signed their acknowledgment of our Supplier Code of Conduct or presented equivalent codes of their own.; Seven of these active supplier sites (including 4 of our contract manufacturer sites) have undergone related on-site audits. To date, we have not found evidence indicating that further screening of suppliers based on human rights risk is required.

GRI 403-10: Work-related ill health

Occupational Safety Risk Assessments have not resulted in identification of specific occupational ill-health topics. We continue to monitor this as part of our ongoing safety programs and audits.

GRI 403-8 Workers covered by an occupational health and
safety management system

GRI 403-7: Occupational health and safety impacts linked
by business relationships

GRI 403-6: Promotion of worker health

We aim to certify all current and future manufacturing and R&D sites under our operational control to relevant ISO standards for management systems in the fields of quality, environment, and safety.

Currently, 100% of the designated sites (where 67% of our total global employees work), have been certified to ISO 45001 (safety management).

We encourage employees to maintain good health and support their efforts with a range of recreational activities that help improve physical energy and reduce stress, as well as healthcare benefits. See section: Health & Safety.

GRI 403-1: Occupational health and safety management system
GRI 403-2: Hazard identification, risk assessment, and incident investigation
GRI 403-3: Occupational health services
GRI 403-4: Worker consultation on occupational health and safety
GRI 403-5: Worker training on occupational health and safety

SolarEdge takes a proactive approach in assuring the occupational health and safety of its employees, ensuring that we are compliant with laws and regulations while striving for safety excellence. All our global manufacturing and R&D operations are certified to ISO Occupational Health and Safety Quality Management Standard ISO 45001:2018. We conduct regular risk assessments and incident investigation in line with ISO requirements. In all of our manufacturing and R&D sites, employees participate in safety activities and in defining safety programs, requirements and measures. Annual safety training is mandatory for all employees and specialized safety training is conducted for those in relevant or high-safety-risk roles. Only a minority of SolarEdge sites provide occupational health services onsite. However, in the event of a safety incident or need for medical consultation, Safety Officers in place at all sites are trained to provide the appropriate responses to ensure needed medical attention is provided.

GRI 102-41 Collective bargaining agreements

285 employees based in Italy and Japan are employed through collective bargaining agreements, representing 5% of our total global company workforce. The remaining (95%) of our employees are employed with individual contracts.

Environmental contribution, mitigation of negative impacts, remediation, engagement and dialogue on environmental matters.

Safeguarding the environment and ecological impacts in communities. Supporting communities in improving lives. Local hiring. Local economic contribution.

Return on investment, reliable financial and production forecasts, strong governance and responsible and ethical conduct. Transparent disclosure.

Compliance, transparency, collaboration to resolve regulatory issues in ways that benefit national and local interests. Compliance with climate change initiatives. Transparent disclosure.

Fair dealing, opportunity to compete (especially diversity or minority suppliers), opportunity to engage in new developments.

Product quality, fast and reliable service, improved carbon footprint, reliability, responsiveness to needs, competitive pricing.

Meaningful work, fair compensation, ability to learn and develop, fair and ethical treatment.  A company that they can be proud to work for.  Competent leadership. Safe and empowering work culture.

Targeted engagement on specific topics, conferences, industry events

Community events, volunteering in communities

Annual meetings, dialogue with investors and research analysts  

As needed to support current and emerging regulatory requirements

Periodical meetings and discussions

Meetings, customer service surveys, professional training events

A range of internal communications channels throughout the year

Environmental organizations

Communities

Investors/ Stockholders

Regulators

Suppliers

Customers

Employees

Key expectations

Means of engagement

Primary stakeholders

GRI 102-40 List of stakeholder groups
GRI 102-42 Identifying and selecting stakeholders
GRI 102-43 Stakeholder engagement
GRI 102-44 Key topics and concerns raised

GRI 404-3: Performance reviews

GRI 405-1: Diversity of governance bodies and employees

As of April 2024, SolarEdge’s Board of Directors includes three women, which represents 38% of our eight-person Board of Directors.

GRI 401-1: New employee hires and turnover rates

GRI 102-8 Information on employees

GRI Data Tables