The 2nd edition of TaiyangNews Solar and Sustainability Conference had key PV stakeholders discussing sustainable manufacturing in the PV industry
Manufacturers shared the importance of incorporating ESG standards within their ecosystem
Voluntary adherence to standards and investment in certifications is also part of their strategy to operate sustainably
By nature, solar is a sustainable resource, but solar PV is still an industrial technology that leaves a carbon footprint. The good news is that along with a growing awareness of being environmentally responsible, government mandates to lower emissions are prompting the global solar PV industry to mind their steps, right from manufacturing to recycling.
On August 27, 2024, TaiyangNews brought together major stakeholders from the world of solar to ascertain the steps they are taking to operate their solar business sustainably, and need to undertake to make PV a truly sustainable technology as part of its 2nd Virtual Conference on Solar and Sustainability.
In his keynote address, the Head of Renewable Energy, German Association for Energy Market Innovators (BNE), Bernhard Strohmayer talked about the best practices for ground-mounted solar parks, with a focus on the German market. What’s noteworthy is that this strong commitment from solar companies is voluntary.
By providing comprehensive information about their solar parks deliberately, companies can contribute to pre-emptively addressing political and environmental concerns, while increasing transparency and community involvement.
Voluntary commitments from companies encompass working on 5 key areas of engaging local communities and administration, integrating agriculture by involving farmers, optimizing land use and landscape integration, enhancing biodiversity, and refining the planning and implementation processes.
As part of good practices for solar park development, developers commit to using native seeds, and not using harmful fertilizers to contribute to the area’s biodiversity. This way, explained Strohmayer, they not only reduce friction during the planning process but also avoid conflict with environmental organizations and gain acceptance of the local community. Companies not only offer direct or indirect participation opportunities specific to projects to the local community, but they also provide financial benefits for the municipality, within the legal framework.
BNE includes these best practices in a good planning document with a special logo, which the companies sign to signify their commitment to the same. Each company is then responsible for a self-certification, meaning they ensure that they are practicing the correct environmental standards as listed in the BNE document. These documents are then made publicly available to make it transparent.
Taking into account the national goal of 215 GW solar PV capacity by 2030, and 400 GW by 2040, the association believes it is crucial to align solar park development with emerging regulations and goals for sustainable development with such best practices. As a next step, there will be regular controls from independent parties.
LONGi’s Director, Public Affairs & Sustainability, Benjamin Wong shared the company’s ESG and traceability initiatives geared towards customer success.
Wong said that as the world’s leading solar PV manufacturer, LONGi focuses on financial sustainability along with environmental, social and governance (ESG) practices. Its ESG framework is encapsulated in the acronym LIGHT, which stands for Leading Innovative Products, Green Climate Action, Harmonious Employee Well-being, and Trustworthiness.
Guided by the United Nations’ Sustainable Development Goals (SDG) and various international reporting standards, its ESG practices are geared towards transparency and accountability for which Wong touted high performance ratings by 3rd parties.
He pointed out that as a Chinese company, although LONGi is not required to report under European ESG regulations till at least 2026-2027, its customers in the continent are obligated to report the same from FY 2025. Hence, the group is proactively aligning its operations to meet these standards by 2026, including preparing for the Corporate Sustainability Reporting Directive (CSRD).
The manufacturer has been publishing its sustainability and climate action reports on an annual basis based on internationally recognized standards such as the Global Reporting Initiative (GRI) and International Financial Reporting Standards (IFRS).
Wong said LONGi significantly invests in R&D efforts to create innovative, low-carbon products, pointing out that the company has unmatched R&D focus. In 2023, it invested RMB 7.721 billion in R&D, representing a 5.96% R&D revenue ratio, also an 8% year-on-year (YoY) increase. It claims 27% of the world’s cumulative installed PV capacity in 2023 was manufactured by LONGi, generating 1.736 billion kWh of green electricity, avoiding 812 million tCO2e of emissions.
It has also committed to being 100% renewable energy powered by 2028. For each product in its portfolio, there is a power consumption target which is monitored annually. In 2023, for instance, it was able to exceed the power consumption/product target for monocrystalline wafers and cells.
In terms of its supply chain, LONGi adheres to labor rights and sustainable procurement practices, stated Wong. He added that LONGi benchmarks its practices against global leaders like Apple to continuously improve and set high standards in sustainability and ESG performance.
JA Solar’s Senior Engineer, Marketing Department Weichen Jin talked about the company’s journey to sustainable manufacturing and beyond as part of its 2030 target to reduce its GHG emissions by 42% compared to 2023 levels. By 2050, it aims to achieve a net-zero status.
Jin explained that the company targets to achieve these aims with a focus on sustainability practices across the value chain. It has established a Green-to-Green (G2G) sustainability concept that focuses on creating a green cycle in manufacturing, supply chain, and community impact, including green factories.
Citing several green certifications and compliance with the industry standards, Jin said JA’s high level of vertical integration allows it to have strict control over product quality, cost and sustainability.
The company’s flagship DeepBlue 4.0 Pro module has lowered its carbon footprint by 22.2% during 2023-24, and targets to further bring it down by 33.3% by 2028. It has been able to achieve this by using lower emissions polysilicon, thinner (from 150 µm to 125 µm) and larger wafers, and a lower emissions manufacturing process, among other measures.
Even in terms of logistics, it uses electric vehicles, and resorts to recycling silicon wafer foam boxes and PE foams and cartons.
JA has also partnered with WWF to jointly develop a Zero Carbon Factory guidance for the global PV module and cell manufacturing domain. Going forward, Jin stressed on partnerships and technological advancements to drive the broader industry changes.
The Head of the Solar Stewardship Initiative (SSI) Secretariat Alexia Ruvoletto delved into the fully transparent product sourcing along the solar module supply chain. It is based on the 2 pillars of ESG assurance and transparency on the origin of materials and components.
A program designed to measure and ensure the sustainability of solar products, the SSI brings together all stakeholders including solar PV manufacturers, project developers, utilities, and financial institutions. Ruvoletto said 5 of the top 10 PV module suppliers globally have committed to the SSI. And indeed, all module makers at the event said that they are already members of the SSI, or will join soon. LONGi officially announced it sponsored the pilot SSI and completed the pilot audit of its Jiaxing fab with good results. LONGi will join the new SSI in 2024 and conduct the required audits by 2025 for both ESG as well as Traceability modules.
The SSI ESG standard is based on internationally recognized standards such as the UNGPs, the UNGC, OECD Guidelines for Responsible Business Conducts and ILO Conventions.
Under this, independent SSI-approved auditors will assess and score the manufacturing sites of the members against the ESG standard and the future SSI Traceability Standard. It will then assign a gold, silver, or bronze score to production sites based on their compliance. Within a year, it targets to cover 100 GW module capacity and 20 GW cell capacity to undertake ESG site certification assessment.
As companies adhere to standards that ensure the energy transition is just, inclusive and respects human rights, it will build the confidence of regulators, customers and business partners, according to the SSI. It also aims to prepare the community for relevant upcoming laws and regulations on responsible supply chains.
The organization is currently seeking feedback on its upcoming SSI Supply Chain Traceability Standard. The deadline for comments is October 21, 2024. The official launch of the publication is planned for December 12, 2024. Ruvoletto shared that the SSI is also developing a tool like the SSI Buyers’ Guide to assist companies with integrating sustainability into their procurement practices.
Trina Solar’s Director EU Public Affairs & Policy Pia Alina Lange spoke about the company’s journey of sustainable solar. She stressed that sustainability has now gone beyond decarbonization. Especially looking at the last 5 years of EU legislative frameworks, sustainability has seeped into the 3 pillars of ESG, carbon footprint and circularity, which directly impact and drive businesses in the solar domain.
For Trina Solar, Lange explained, responsible business practices translate into sustainable manufacturing, sustainable financials, and sustainable product design.
A sustainable product design, for instance, reflects in the use of environment-friendly materials, less energy and water consumption, and end-of-life management. Trina Solar saves plastic by replacing the backsheet with glass for easy separation of materials, for instance.
By sustainable manufacturing, it refers to the green factory concept. Between 2015 and 2021, Trina Solar’s total emissions during production, operation and R&D at all its manufacturing bases amounted to 4.48 million tons. However, Lange shared that the company was able to reduce its carbon emissions by 4.82 million tons by establishing solar PV stations, green electricity purchase, energy conservation and consumption reduction over the same period due to the green factory concept. Lange added, “On a theoretical point of view, we are already talking about how to get to carbon negative.”
Recycling also figures in its scheme of things as Lange shared that Trina Solar is recycling more than 94% of waste at the operational level.
By 2030, it aims to become 100% renewable energy powered in its global manufacturing and operations.
Lange stressed that sustainability is also an economic matter that accelerates the green transition. Financial stability or strong financial performance of a company is essential to attract investment in renewable energy.
ESG Manager at Tongwei Solar Minglan Peng shared the company’s journey towards sustainable development and its ESG initiatives. The vertically integrated company, one of the world’s largest silicon and cell makers, has published its 4th ESG report since 2020, which Peng said is aligned with international standards such as Global Reporting Initiative Standards (GRI), UN SDGs and Task Force on Climate-related Financial Disclosures (TCFD).
Peng stated that Tongwei’s ESG management structure is led by the CEO and involves key managers and technical experts. As part of its commitment, Tongwei aims to achieve carbon neutrality in operations by 2030, and also achieve 100% renewable energy. It is also focused on building a sustainable supply chain and ensuring responsible sourcing.
Employees who help achieve significant ESG milestones are incentivized to encourage further growth in their efforts in this direction. Tongwei has also achieved a 100% PV supplier social responsibility commitment signing rate. By 2025, the target is to have 100% supplier ESG risk identification and assessment.
The Chinese manufacturer is also voluntarily participating in global climate governance and joining international voluntary climate initiative organizations.
Peng shared that Tongwei incorporates ESG principles in the entire supply chain to ensure its products and operations are low-carbon, green and responsible. It has also conducted a greenhouse gas inventory and certification covering Scope 1, 2 and 3 emissions.
Tongwei’s current annual manufacturing capacity comprises 450,000 tons of high-purity polysilicon, 20 GW of ingots, 20 GW of crystalline silicon wafers, 95 GW of solar cells and 75 GW of solar modules.
Sharing Astronergy’s experiences in building a zero-carbon factory was its Senior Technical Manager Jerzy Rudnicki. The company currently operates 9 domestic manufacturing bases in China and 3 overseas. A 500 MW module factory in Turkey and a 2 GW module fab in the US are currently under construction. Part of the Chint Group, it is also evaluating a 2 GW module factory in the EU and a 50,000-ton silicon fab in Saudi Arabia.
As part of its COP28 commitment, Astronergy aims to complete the construction of at least 3 zero-carbon factories by the end of 2024 and achieve a total of 8 such factories by 2028.
To achieve these targets, Astronergy has developed a comprehensive sustainability strategy that includes green supply chain management, green manufacturing, green design, and green recycling. For its Yancheng base, it achieved a zero-carbon factory certification for the use of renewable energy, waste management, and intelligent energy systems.
In terms of manufacturing, its green design and products include innovations such as zero busbar tiling film technology and reduced use of silver paste to reduce energy use and raw material consumption. Rudnicki called double glass modules an eco-friendly product design that promotes recyclability.
He also touted high recycling rates for PV cells, welding ribbons, and packaging materials. Collaboration with organizations such as PV CYCLE and SSI help in its green recycling efforts.
Sharing the company’s sustainability roadmap, Rudnicki said that Astronergy targets to achieve carbon-neutrality by 2050, and as part of its ESG efforts, it will also increase the proportion of female employees to 40%, and achieve 100% of core suppliers certified by ISO 14001/45001.
The Managing Director of PV CYCLE, Jan Clyncke, emphasized the importance of material recovery and waste prevention from a solar PV recycler’s perspective while sharing the status of module recycling activities.
By virtue of their long working life, PV panels contribute positively to waste prevention. Further, all PV panels that contain all original components are deemed suitable for recycling, and these can be treated regardless of whether the glass is broken or intact.
Clyncke explained that in laboratory and small-scale treatments, the average technical recycling rate is around 95% by weight. However, the current waste treatment activities result in an average recycling rate of 70% by weight, for all PV CYCLE treatment partners and all PV technologies. PV CYCLE adopts the Best Available Techniques Not Entailing Excessive Cost (BATNEEC) while assessing waste treatment solutions.
According to him, the main challenge in PV panel recycling is the low waste volume due to their long working life. Yet, the market is seeing the emergence of both startups and established names in this space.
While this represents the growing interest in this space despite low waste volume, it also points to the need to have clear guidelines and standards to regulate their reuse and ensure environmental as well as economic sustainability, since many reuse practices are still illegal with no proper accountability.
Panel discussion
In conversation with TaiyangNews Managing Director Michael Schmela, the panel discussion revolved around what’s needed most to further improve solar’s sustainability.
The panelists were unanimous in their opinion that the solar PV industry is continuously evolving and that it is voluntarily adapting to sustainability standards. They stressed that there is huge scope of improvement still and it needs the right policy push to steer it in the right direction.
PV CYCLE’s Jan Clyncke shared that a waste sample analysis of PV panels conducted by the organization showed a clear evolution of PV technology. While the modules of yesteryears had some hazardous materials used, the newer panels were mostly made up of non-hazardous ones.
He stressed that at the end of the day, solar panels are an investment product that provides clean energy at a low cost to homes and businesses. This necessitates regulatory support in terms of environmental guidelines and inspections in this space to ensure its sustainable development.
Trina Solar’s Pia Alina Lange believes that the solar industry is already doing better than several other industries that continue to remain conservative when it comes to sustainability. Nonetheless, she stressed the need to have common standards so that everyone is on the same page and that one can compare apples to apples.
LONGi’s Benjamin Wong also believes that for a company with a global footprint like LONGi, different reporting standards across the globe make things difficult to manage. Currently, the US and Europe are the 2 regions with the most mature set of regulations for ESG and traceability, but it would be helpful to have similar reporting standards as companies need clearly laid down boundary conditions to adhere to.
BNE’s Bernhard Strohmayer talked about the significance of inspection as a follow-up on policy support to strengthen traceability and transparency in the industry. Even as the industry moves ahead with the right intent, there is a need to have a system in place for inspection of solar panels shipped. This will ensure accountability, and thereby sustainable development of the industry.
On September 18, 2024, TaiyangNews will host the Virtual Conference on Advanced Solar Module Applications 2024 to discuss innovation in solar module design for diverse applications. Registrations for this 1-day event are free and can be done here.