Nextracker Outlines 2025 Sustainability Progress

Key takeaways: 

• Nextracker reports continued focus on supply chain sustainability, including low-emission steel procurement and responsible labor audits 

• The company has set SBTi-aligned targets to reduce GHG emissions across scopes 1, 2, and 3, with third-party assurance for FY2025 data 

• Product developments include low-carbon tracker systems, reduced-steel foundations, and design updates aimed at lowering environmental impact 

‘Sustainability’ is a term that is increasingly becoming part of discussions not only in PV manufacturing but also in systems engineering and related products. The scope for sustainability measures after the modules are delivered to the customers is also huge. For example, the methods, materials, and other elements at the PV installation site play a vital role in reducing carbon emissions, conserving utilities, and preserving the ecosystem. 

US-based Nextracker, the world’s largest solar tracker manufacturer, has released its second sustainability report, which reflects its sustainable and ESG practices.  

In this report, the company highlights its progress across the supply chain, greenhouse gas (GHG) emissions, people and culture, and certification updates. The company notes that it launched a wide range of foundation technologies designed for diverse soil conditions, aimed at reducing costs, improving safety, and streamlining project timelines. 

Supply Chain and Responsible Sourcing 

Nextracker states that it maintains a continued engagement with the Sustainable Steel Buyers Platform (SSBP) to increase demand for cleaner and low-emission steel procurement. SSBP brings together the steel-intensive sectors covering manufacturing, technology, and construction companies, and helps them translate their low-emission steel purchase commitment into reality. The platform also helps steelmakers, who are committed to zero-emission steel, get offtake agreements.

Nextracker also highlights its new membership with the Global Steel Climate Council (GSCC) –  an international coalition of steel producers and stakeholders across the steel value chain. GSCC aims to create a low-emission steel standard for all producers who accurately keep a count of their emissions, irrespective of the production method. 

As part of its efforts to align with the UN Sustainable Development Goals (SDGs), Nextracker contributed to some of them. UN SDGs are a set of 17 global goals that aim to address global challenges and create a sustainable future by 2030. In its report, Nextracker highlights its contribution towards SDG 3, 7, 8, 9, 11, 12, 13, 15, and 16, covering issues in the supply chain, greenhouse emissions, people and culture, and governance. The company has updated its procurement principles in line with the UN guiding principles on business and human rights, labor declaration, and rights at work, et cetera. In accordance with these principles, Nextracker has made ISO 14001 and 45001 certifications mandatory for its suppliers. Additionally, its suppliers are required to track and document their Scope 3 emissions related to the production of Nextracker’s goods and services. In this regard, the company says it has risk assessments and audits in place to check for forced, compulsory, or child labor among all its suppliers. 

Emission Targets and Energy Use 

To reduce GHG emissions, Nextracker has set targets with the Science Based Targets Initiative (SBTi) to lower emissions across scopes 1, 2, and 3. It reports receiving third-party assurance on scope 1 and 2 emissions for FY2025 data. “Eight of our locations run on renewable electricity, through a combination of renewable energy credits, grid electricity from renewables, and on-site generation,” says Nextracker’s CEO, Dan Shugar. 

Under People and Culture, the company reports achieving a low total recorded incident rate (TRIR) of 0.61 in CY2024, although slightly higher than the 0.37 TRIR reported in CY2023, for its US operations, alongside completing health and safety training for over 90% of its global workforce. It also refers to collaborations with academic communities in the US to establish research partnerships and integrate solar technologies into academic curricula. As part of this collaboration, the CAL-NEXT Center for Solar Energy Research, which offers research and education programs, is under development. 

New Low-Carbon Product 

As part of its product portfolio, Nextracker introduced a low-carbon tracker that it describes as the industry’s first reduced-carbon option. It states that it achieved this through the use of locally sourced materials, domestic recycled steel, and optimized logistics. The tracker comes with third-party verified life cycle assessment (LCA) documentation on emissions, land use, water consumption, and other metrics, and is said to reduce emissions by up to 35% compared with its standard tracker (see Nextracker’s NX Horizon And Gemini). However, the company has not disclosed the figures for this comparison. Another design, NX Horizon-XTR, developed a few years ago, is a terrain-following tracker that is said to minimize the carbon output associated with earth grading, helping avoid habitat disruption, topsoil destruction, and soil erosion. For more details on Nextracker’s products, read TaiyangNews’ Market Survey on Solar Trackers 2024. 

Additional design developments that focus on reducing environmental impact include the use of bio-based plastics for controller enclosures and replacing plastic end caps with metal alternatives. The company has also worked on reducing the use of PFAS (Per and Polyfluoroalkyl Substances used for water, grease, and stain-resistant properties that take centuries to degrade in the environment) chemicals and developing higher-efficiency electronic controllers with lower power requirements. Additionally, Nextracker states that its new foundation solutions are designed to use less steel while maintaining structural integrity. 

Nextracker highlights its certification achievements with 3rd party agencies, such as earning a C rating for it 2024 Carbon Declaration Project (CDP) submission. Among its other sustainability achievements, the company said it maintained an A rating from Morgan Stanley Capital International (MSCI) and achieved EcoVadis Silver Medal. 

At the end of July, Nextracker reported a 20% year-over-year (YoY) increase in Q1 FY2026 revenues to $864 million, largely driven by overseas markets. It also reported a 19% YoY increase in GAAP gross profit at $282 million and 16% in GAAP operating income of $186 million. The management attributed the growth to disciplined execution and ongoing investment in high-value technologies (see Nextracker Reports 27% Annual Growth In Q1 FY26 Revenues).