Introduction – Sustainability Strategy & Performance
2023 Performance Summary
Sustainability Report 2023 /
Sustainability Strategy & Performance
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Contact our sustainability / ESG team
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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
Powering the Future of Energy:
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.
See section: Innovative Solutions
See section: Lifecycle Assessment
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.
See section: Training and Development
See section: Diversity, Equity, & Inclusion
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.
See section: Community Outreach
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.
See section: Community Outreach
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.
See section: Community Outreach
See section: Responsible Procurement
See section: Health & Safety
See section: Diversity, Equity, & Inclusion
See section: Training & Development
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
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.
See section: Waste Management
See section: Waste Management
See section: Climate Change Mitigation
See section: Ethics and Compliance
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
Join the SolarEdge Conversation
Contact our sustainability / ESG team
Contact us
How can we help you?
*Slide to the left to see entire table
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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
Sustainability Strategy
Sustainability Report 2023 /