Introduction – Sustainability Strategy & Performance

solar panels in sun near mountain and trees

Sustainability Strategy & Performance 

Join the SolarEdge Conversation

 

 

 

Contact our sustainability / ESG team

How can we help you?

 

Our sustainability strategy leverages high-performance smart energy technology to power the future of energy. With this, we aim to deliver positive impact for people and society while operating in line with ethical and responsible practices. Our three-pillar strategy is influenced by our Materiality Assessment[1]. The results of this assessment have indicated 11 material topics that have the most significant impact for our stakeholders. These material topics align with our business objectives, stakeholder expectations, and 10 of the 17 UN Sustainable Development Goals.

Our strategy is supported by multi-year targets in each pillar. Progress toward the delivery of each target is sponsored and supported by a member of our senior management team. In 2023, we continued to make progress as shown in the following 2023 Performance Summary.

So we can all enjoy better living and a sustainable future

Ethical and compliant conduct
Climate resilience
Resource efficiency
Ethical sourcing

Be a responsible employer
Protect human rights
Invest in communities

Accelerate affordable clean energy
Deliver smart energy solutions
Product innovation
Deliver sustainable products

Powering Business

Powering People

Powering Clean Energy

Teamwork icon Graph icon Green energy icon

Powering the Future of Energy:

SDG 10 icon SDG 15 icon SDG 13 icon SDG 5 icon SDG 9 icon SDG 8 icon SDG 1 icon SDG 12 icon SDG 3 icon SDG 7 icon

2023 Performance Summary

Introduced TerraMax™, the first DC-optimized inverter solution for utility-grade applications.

Launched the energy optimization system, SolarEdge ONE for both residential and commercial SolarEdge ecosystems.

Introduced new features in safety and cybersecurity, developing first-in-class technology for our customers’ protection.

Introduce new innovations that support the transition to renewable energy use, storage and smart energy management.

Over 3.4 million homes were equipped with a SolarEdge PV system by end of 2023 (cumulative).
We reached our previous target of 2.5 million homes during 2022, and as such, revised the 2025 target. 

 

SDG 15 icon SDG 11 icon SDG 9 icon SDG 7 icon

Over 350,000 commercial sites equipped with a SolarEdge PV system by the end of 2023 (cumulative).

132,000 GWh of renewable electricity produced by the end of 2023 (cumulative).

Completed comprehensive carbon footprint analysis for leading models of inverters and Power Optimizers. Expanded LCA analysis currently underway

Reach >220,000 GWh (cumulative) of renewable electricity produced by our customers using SolarEdge products by end of 2025.

Improve the lifecycle value of our products

On Track

On Track

On Track

Reach >500,000 commercial sites equipped with a SolarEdge PV system by end of 2025

On Track

On Track

Reach >4 million homes equipped with a SolarEdge PV system by end of 2025.

Deliver sustainable products

Deliver smart and innovative solutions

Accelerate affordable clean energy

Status

2023 Performance

Targets

Goals

Powering Clean Energy

On Track

On Track

On Track

On Track

On Track

On Track

On Track

On Track

On Track

On Track

Audit key suppliers to assure their compliance with the SCoC requirements on social, ethical and environmental issues.  

 

The ‘Power Your Edge’ program is designed to help talented employees who were identified with high potential to develop on personal, managerial and organizational levels. Each one of the over 100 program participants built a personal development plan for 2023-2024. 

‘Power Your Edge’ talent program: all participants to complete >90% of their personal development program

Over 40 participants in designated development programs for female managers and women in tech roles in recent years.

New program planned to be launched in 2024.

Create enhanced global development program for talented women and for female managers

During 2023, over 90% of manufacturing site employees in Israel and South Korea completed safety training. In 2024, we aim to achieve this KPI in all manufacturing and R&D sites (Israel, South Korea, Italy and the U.S.).

>90% of global employees at manufacturing and R&D sites should complete mandatory safety training each year

Overall TRIR rate in 2023 was 0.66 across all SolarEdge facilities. This represents a 9% increase from 2022 (0.61) but still achieves our annual target. Increase is attributed to issues identified with a specific new production line, and corrective actions were put in place.


 

 

Donated $537K in 2023, equivalent to 0.57% of net profits, surpassing the target. The target was surpassed ahead of time on a one-time basis due to ad-hoc donations to communities in need in Q4.

 

 

 

Gradually increase annual charitable donation to 0.5% of net profits by 2026.

We donated and installed a PV installation at the Manof Youth Village for youth at risk in northern Israel early in 2023. A similar PV system was installed in early 2024 in a No2Violence women’s shelter in central Israel.

Donate one new community PV installation project each year.

EDGEUcate launched in 70% of the designated sites. The remaining sites are planned for a 2024 launch.

29% women in global workforce

18% women in R&D roles

26% women in sales roles

19% women in total management

20% women in mid management

16% women in senior management

Annual pay-gap analysis completed (for Israeli employees); no material difference found in pay by gender.

More than 230 active suppliers have signed their acknowledgment of the SCoC terms or presented equivalent codes of conduct of their own. The products and services received from these suppliers are related to over 93% of the combined direct monetary spend of our Solar and Storage divisions in 2023.

On-site SCoC audits conducted to date in 3 out of 4 of our current contract manufacturer sites, and 3 major raw material suppliers. Our newest contract manufacturer in Austin, Texas and 2 additional component suppliers are scheduled for audits in 2024.

Delivered more than 84,000 hours of training (14.9 training hours per employee on average in 2023).
Implemented several employee and mangers development programs.
Formed career mapping and development planning for Service, IT, and most R&D roles 

 

Achieve TRIR (total recordable injury frequency rate) equal to or below 0.7 in all SolarEdge facilities

EDGEUcate project: Launch EDGEUcate in 10 main SolarEdge sites.

Achieve acknowledgment of the terms of our Supplier Code of Conduct (SCoC) by all significant suppliers.

 

31% women in global workforce

20% women in R&D roles

28% women in sales roles

22% women in total management

22% women in mid management

17% women in senior management

Increase gender equality and inclusiveness in our workforce. Achieve these targets by 2026:  

Continue to increase investment in training & development opportunities for employees in order to develop new skills and professional learning at every level.

Invest in communities

Responsible Procurement

Be a responsible employer

Status

2023 Performance

Targets

Goals

Powering People

SDG 5 icon SDG 3 icon SDG 10 icon SDG 8 icon

Behind
Schedule

On Track

On Track

On Track

Achieved 2023 plan

Behind schedule

Exceeding Target

Legend

83% of 2023 waste was either recycled (76%) or recovered to energy (7%).

>80% of generated waste  recycled or recovered to energy.

All e-waste generated directly at manufacturing, R&D and logistic sites is collected and handled by certified WEEE (Waste Electrical and Electronic Equipment) handlers and recyclers.


Several energy efficiency measures were undertaken, and 5 or our sites now have SolarEdge PV systems generating renewable electricity on their rooftops.
However, our absolute Scope 1+2 emissions have nonetheless increased by 26% in 2023 compared with 2022, due to significantly expanded operations in the Sella 2 site (that now accounts for >70% of our Scope1+2 emissions).
The  reduction target issued in previous reports (30% reduction of Scope 1+2 emissions per revenue) referred to 2020 as the base year for emission reduction, and did not reflect the significant expansion of our self-production capacities since, with emphasis on the more energy-intense battery production.

We have therefore set an updated short-term target, excluding our South-Korean sites. Once Sella 2 reaches its full production capacity and our base energy consumption stabilizes, we aim to set an updated global reduction target, to include the Korean sites and reflect a longer period. 

Over 5,200 employees, which represents over 90% of the end-of-year workforce, successfully completed the Employee Code of Conduct training in 2023.

 

Achieve near-zero e-waste to landfill.

>5% reduction of overall absolute Scope 1+2 GHG emissions by 2025 (base year 2023), excluding our sites in South-Korea.

>90% of global workforce to undergo ethics training each year.

Resource efficiency

Climate resilience

Ethical and compliant conduct

Status

2023 Performance

Targets

Goals

Powering Business

SDG 13 icon SDG 12 icon

Join the SolarEdge Conversation

 

 

 

Contact our sustainability / ESG team

How can we help you?

 

*Slide to the left to see entire table

*Slide to the left to see entire table

*Slide to the left to see entire table

Powering Business

Powering People

Powering Clean Energy

*Slide to the left to see entire table

Our strategy is supported by multi-year targets in each pillar. Progress toward the delivery of each target is sponsored and supported by a member of our senior management team. In 2023, we continued to make progress as shown in the following 2023 Performance Summary.

So we can all enjoy better living and a sustainable future

Powering the Future of Energy:

2023 Performance Summary

Our sustainability strategy leverages high-performance smart energy technology to power the future of energy. With this, we aim to deliver positive impact for people and society while operating in line with ethical and responsible practices. Our three-pillar strategy is influenced by our Materiality Assessment[1]. The results of this assessment have indicated 11 material topics that have the most significant impact for our stakeholders. These material topics align with our business objectives, stakeholder expectations, and 10 of the 17 UN Sustainable Development Goals.

Introduction – Sustainability Strategy & Performance

solar panels in sun near mountain and trees

Sustainability Strategy  

Sustainability Report 2023 /