LONGi’s ESG reporting is aligned with the UN 2030 Sustainable Development Goals and provides a framework for reporting
The company scored 69 out of 100, placing it in the 91st percentile, in the Ecovadis Sustainability Assessment 2024 report
LONGi is the 1st Chinese company to have its Scope 1, Scope 2, and Scope 3 near-term targets validated by the Science Based Targets Initiative (SBTi)
ESG (Environmental, Social, and Governance) reporting has become increasingly important for companies with a global presence, driven by the need for transparency, accountability, and sustainability, as well as growing regional obligations and regulations. Aligned with global sustainability and climate change frameworks, periodic ESG reporting can enhance investor confidence, meet consumers' Scope-3 requirements, mitigate regional regulatory pressures, and effectively manage business risks.
In this context, at the TaiyangNews Solar & Sustainability 2024 Conference, Benjamin Wong, Director of Public Affairs and Sustainability at LONGi, shared a brief overview of the company's latest ESG & Traceability initiatives, aligning with EU ESG reporting obligations and regulations (see LONGi presentation here).
Since its inception in 2012, LONGi, a vertically integrated PV manufacturing company that produced nearly 414 GW of PV products by 2023, reported assets worth £17.3 billion and a cash flow of £920 million. These figures highlight the company’s financially sustainable operations, as detailed in the 2023 annual financial report. Following the brief insight into the company’s financial stability, which has been validated by 3rd party agencies such as Bloomberg NEF and PVMODULETECH for the last few quarters, Wong started about the company’s ESG and sustainable operation.
Regarding the relevance of ESG reporting in the context of European Union (EU) regional obligations and regulations, Wong highlighted 3 key legal frameworks: CSRD, CS3D, and the Forced Labour Regulation (FLR). The FLR is expected to include traceability requirements for supply chains. According to CS3D, non-EU companies generating over €450 million in net turnover within the EU must address adverse impacts on human rights and the environment across their value chains. The CSRD, on the other hand, focuses on due diligence related to policies, processes, and measures, including information on supplier compliance with human rights and labor standards. Although LONGi, a Chinese company, is not required to report on ESG matters until 2027, Wong emphasized the need for the company to be prepared with relevant data and information for its customers' 2025 financial reporting.
LONGi’s ESG reporting, aligned with the UN 2030 Sustainable Development Goals (SDGs), reflects international ESG standards and provides a solid framework for reporting. Its annual sustainability and climate reports are based on the UN SDG goals and principles, as noted by Wong. He says LONGi’s commitment to sustainability is guided by its strategic pillars, encapsulated in the acronym LIGHT: L for Leading, I for Innovative Products, G for Green Climate Action, H for Harmonious Employee Well-being and Industrial Cooperation, and T for Trustworthiness.
To address customer requirements for reducing Scope 3 emissions based on the CSRD and internal sustainability standards, LONGi publishes 2 annual reports: a sustainability report (covering all areas of ESG) and a climate action report (detailing Scope 1, Scope 2, and Scope 3 emissions). Wong further noted that LONGi’s Scope 1, Scope 2, and Scope 3 emissions are considered part of its customers' Scope 3 emissions. LONGi’s reports, aligned with international information disclosure standards such as IFRS, GRI, and others, maintain transparency across all aspects of ESG. The company also actively participates in international initiatives and organizations, including the SDGs, the Science-Based Targets Initiative (SBTi), and climate groups like EV100, EP100, and RE100. Since 2022, LONGi has received 4 international recognitions from Forbes, Fortune, Corporate Knights, and Bloomberg for its sustainable best practices. Additionally, LONGi scored 69 out of 100, placing it in the 91st percentile, in the Ecovadis Assessment 2024.
For Innovative Products, the company allocated 5.96% of its revenue to R&D in 2023, an 8% year-over-year increase over 2022. Wong also noted that LONGi has invested in intelligent manufacturing at its Jiaxing factory, recognized as a global lighthouse factory by the World Economic Forum. Additionally, Wong emphasized that the low-carbon products produced at these factories must be certified by France, Korea, or Italy. The company follows the EPD (Environmental Product Declaration) framework, which provides end-to-end lifecycle carbon footprint certification.
Regarding its environmental initiatives, LONGi is investing in reducing Scope 1, Scope 2 (within its control), and Scope 3 greenhouse gas emissions. The company aims to achieve the RE100 target of 100% renewable energy (RE) usage by 2028, with intermediate targets of 70% by 2027 and 100% by 2028. Wong stated that LONGi's near-term Scope 1, Scope 2, and Scope 3 targets have been validated by the Science Based Targets Initiative (SBTi). This commitment includes reducing absolute Scope 1 and 2 GHG emissions by 60% and reducing Scope 3 emissions from purchased goods and services by 52% per tonne of purchased materials by 2030, both from the 2020 base year. In alignment with the RE100 initiative, the company's operations are currently powered by 47.8% renewable energy, with 2.1% generated from captive solar and the remaining 97.86% sourced from the power trading market, noted Wong.
From the perspective of people and community, the social aspect of ESG, and meeting customer expectations for protecting labor rights and maintaining an ethical workplace, LONGi believes it has an advantage as a vertically integrated company, spanning from polysilicon to modules. Wong noted that LONGi's single business code of conduct, designed to ensure compliance across its vertically integrated supply chain, is in line with international business practices, including the United Nations Global Compact (UNGC), the International Labour Organization (ILO), and OECD guidelines. Additionally, the consistent implementation of these business code of conducts has been periodically validated through 3rd-party certifications, such as the ISO 26000 Social Responsibility Assessment. In addition to ISO 26000, LONGi has also earned the SA8000 Social Accountability Certification.
Regarding the sustainable supply chain, Wong explained that 100% of the company’s suppliers have signed the Supplier Code of Conduct, and all new suppliers meet social and environmental standards, which is in line with UNGP, ILO, and OECD guidelines. As part of the company's 2024-2028 supplier roadmap, significant suppliers currently account for 55% of total procurement expenditure. However, this figure is expected to rise to 80% by 2028. LONGi follows a 3-step risk monitoring process for its suppliers, says Wong.
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