We have joined the RE100, EP100, EV100 initiatives and the Science Based Targets initiative (SBTi) in 2020, established a full value chain greenhouse gas emission accounting system, identified and managed climate risks following international standards, and set emission reduction targets that are in line with PV industry's development and our operating conditions. We have also advocated energy conversation, emission reduction, and the use of renewable energy in our production bases, accelerated the certification of product carbon footprints, and thus became a forerunner in the industry's climate action and green development.

Climate Risk Management

As one of the first PV companies to address climate risks, LONGi has been disclosing its climate actions for many years and has gradually aligned itself with recommendations of the International Financial Reporting Sustainability Standard 2 - Climate-related Disclosures issued by the Task Force on Climate-related Financial Disclosures (TCFD) and the International Sustainability Standards Board (ISSB).

2016201820192020202120222023
Deployed capacity in Yunnan China and Kuching, Malaysia for producing clean energy with clean energyProposed "Solar for Solar" concept at the 24th UN Climate Change ConferenceJoined China Corporate Climate Action (CCCA); Joined United Nations Global CompactJoined RE 100, EP 100, EV 100, andScience-Based Targets initiative (SBTi)Set out building the first "zero-carbon plant"; Established Xi'an LONGi Hydrogen Technology Co., Ltd., a wholly owned subsidiary; Participated in Phase 1 of the United Nations Summit on Biodiversity (COP 15); Released its first White Paper on Climate ActionsParticipated in Phase 2 of the United Nations Biodiversity Conference (COP 15); Participated in the Ramsar Convention on Wetlands (COP 14); Participated in the United Nations Climate Change Conference (COP 27); Released its second White Paper on Climate Actions; Won in the Sinopec Green Hydrogen DemonstrationProject, China's first >10,000 tonne green hydrogen project; Launched "Supply Chain Green Partner Empowerment Program"; Built a "PV+ Desertification Governance" project in Kubugi Desert, inner Mongolia; Joined "Sustainable Market Initiative (SMl)" China Council
Governance 

LONGi has established a climate change governance system led by the Board of Directors. Several members of LONGi's Board of Directors are experts with years of experience in the PV and energy sectors and are thus able to accurately identify and manage risks, seize opportunities in the global green transition, ensure the effectiveness of climate risk management, and formulate climate actions suitable for the company’s long-term development.

LONGi’s climate governance structure

Role Member Responsibility
Decision-maker Icon The Strategy and Sustainability Committee of the Board of DirectorsThe highest decision-making and governance body of LONGi’s climate programs. The committee meets at least once a year to review the climate strategy and objectives, including medium- and long-term plans, annual plans, and the development and implementation of related policies, and to oversee the management of identified climate risks and opportunities.
Management Icon Strategy Management CommitteeThe decision-making body for LONGi’s climate actions led by the Chief Sustainability Officer (CSO). The committee regularly assesses the risks and opportunities posed by climate change and develops climate action response strategies.
Group’s Energy Management Leading GroupThe Company’s energy saving and emission reduction promotion and implementation organization, with the Plant Management Department as the main responsible department. The committee is responsible for organizing the carbon inventories and carbon reduction implementation at the group level.
Execution Icon Sustainability and ESG OfficeThe climate action coordinator of the Company, with the Brand Management Department as the main responsible department. The office is responsible for organizing the implementation of climate action commitments at the group level.
Supply Chain Management CenterThe environmental and emission reduction management department for suppliers, with the Supplier and Operation Management Department responsible for accounting, promoting, and evaluating suppliers’ emission reduction actions.
Strategy

We have identified and analyzed the climate risks, vulnerabilities, and potential opportunities along the value chain through review, climate database risk screening, and industry research, forming a long list that involves 16 transformational risks, 65 physical risks, and 15 climate opportunities. Meanwhile, we have developed the corresponding climate risk management system, which is published in the 2023 Climate Action White Paper of LONGi.

Risk management

We have managed climate risks following the methods and processes stipulated in our risk management system and conducted analysis for 3 temperature rise scenarios, i.e. accelerated transition (<2°C/1.5°C), current policy (baseline), and high-temperature rise (>4°C), to comprehensively incorporate the risk identified and assessed into the strategic decision-making and daily operations.

LONGi’s climate risk management in 2023

  • Climate risk identification
    • LONGi has carried out a dedicated program to identify and assess climate risks, vulnerabilities, and potential opportunities along the value chain. In the future, the program will be integrated into LONGi's regular risk identification mechanism.
<2/1.5 ℃
accelerated transition
baseline
current policy
>4 ℃
high-temperature rise
Indicator and goal

In 2023, according to the Group’s situation, LONGi set climate-related indicators and targets with reference to international climate action target-setting methods and initiatives, and became the first PV company in China to pass the audit of SBTi.

Climate goals

Climate goals
SBTi IconScope 1 and 2 emissions are reduced by 60 % by 2030 compared to 2020 Scope 3 emission intensity per tonne of purchased goods and services is reduced by 52 % by 2030 compared to 2020
RE100 IconAchieve 70% renewable energy use by 2027 Achieve 100% renewable energy use by 2028
EP100 Others imageComplete the deployment of an energy management system by 2025 Improve energy utilization rate by 35 % from the baseline of 2015
EV100 IconInstall charging facilities 100 % at all manufacturing sites by 2030.

Climate Actions

In 2023, we focused on internal operation and supply chain emission management, implemented a series of initiatives including carbon accounting, energy management, and construction of clean energy facilities, and formulated the Carbon Emission Management System Manual and Work Instruction for Construction and Evaluation of Zero-carbon Plant. We also built an online emission data management system leveraging the EMS system and in line with the requirements of the ISO 14064 standard, continuing to improve the verification of internal emission data.

Emission reduction in operations

8
production bases have deployed the Energy Management System (EMS)
25
production bases have been certified with the ISO 50001 Energy Management System
23 operating sites
We have organized centralized procurement of charging piles at the group level
253 new charging piles
We have installed a total of
31.2 %
enabling the Group’s overall energy productivity to increase by 31.2% compared with 2015
the PAS 2060 Carbon Neutral Certification by SGS
In December 2023, we have also accelerated the construction of Baoshan LONGi “Zero Carbon Factory” and have been awarded

Supply chain emission reduction

over 550 suppliers actively participating in two consecutive sessions.
We have launched the “Supply Chain Green Partner Empowerment Program”
50 key suppliers analyzed their energy use and conducting carbon inventories with our assistance
We have also completed the carbon inventory of

LONGi’s total carbon emission (2021-2023) （tCO2e）

To achieve its science-based targets, LONGi consislently optimises the Group's GHG emissions verification system and implements dynamic adjustments to carbon reduction targets based on carbon reduction rasults.

IndicatorUnit202120222023
Scope 1tCO2e94,750.24158,202.15135,747.14
Scope 2tCO2e2,743,436.882,605,034.424,943,454.12
Scope 3 (Partial)tCO e22,683,132.0029,747,825.8436,990,041.63
GHG emissions within operations tCO2e 2,838,187.122,763,236.575,079,201.26
Total emissiontCO 2e25,521,319.1232,511,062.5742,069,242.89

Note:

1. Due to the update of the regional power grids carbon dioxide emission factors, this report recalculates Scope 2 data for 2022 and 2021 based on the updated version of the Announcement of the Ministry of Ecology and Environment and the National Bureau of Statistics on the Release of CO2 Emission Factors for Electricity in 2021.

2. Scope 3 emissions encompasses purchased goods and services, upstream fuel and energy related activities, upstream transportation and distribution, waste generated from operations, business trips, employee commuting, downstream transportation and distribution, and final disposal of sold products.

In the Group's carbon emission structure in 2023

As for Scope 3, outsourced goods and services (category1) accounted for more than 90% of the total. Scope 2 and Scope 3 emissions showed a slight increase from 2022, mainly due to the increasing output and transportation cost for meeting the rapidly growing global demand for PV products.

Given the growing demand in the PV market demand, we will actively carry out carbon reduction projects, including setting three-year short-term emission reduction targets and pathways, completing and advancing the construction of more zero-carbon factories, participating in green power trading, and strengthening carbon reduction synergy with suppliers.

3 %
Scope 1 accounted for 3% of the operational emissions
14 %
14% lower than in 2022
97 %
Scope 2 accounted for 97% of the operational emissions
89.80 %
up 89.80% compared to 2022 due to a significant increase in output and a decrease in the share of green power

Energy Saving and Emission Reduction

LONGi has formulated the Energy Management Manual, Energy Management System, Energy Data Management Measures, and other institutional documents, set up the Group’s Energy Management Leading Group led by the chairman of the Board of Directors, and an Energy Management Office and Expert Team under it to ensure the standard implementation of the whole energy management process.

In 2023, we conducted an annual energy evaluation on 29 bases within the scope of assessment, and completed a total of 509 energy improvement projects; as of the end of the reporting period, a total of 25 bases have completed their Energy Management System construction and passed the certification, and 10 new bases were added in 2023. We have taken multiple measures including energy-saving technological reforms, energy management, and evaluation, and succeeded in realizing a remarkable annual electricity saving of 1,064 million kWh. This resulted in a 9.53% YoY decrease in the Group’s overall power consumption and an 18.32% drop compared with the base year.

Power saving targets

We have adopted green power in our production actively and optimized our energy structure. In 2023, 3,815 million kWh of LONGi’s total electricity consumption came from renewable energy, accounting for about 31.10% of the total electricity consumption, which was equivalent to about 2,124,399.46 tCO2e emission reduction.

13.43 % lower than that of 2020
The Group’s overall power consumption target in 2023
18.32% %
Actual achievement
9.14 % lower than that of 2023
The Group’s overall power consumption target in 2024
31.10 %
renewable energy

LONGi’s energy usage (2021-2023)

We take 2020 as the base year, set the power consumption target for each product, and monitor the achievement of the target every year. In 2023, the reduction of power consumption per product for monocrystalline, wafers, and cells exceeded expectations.

LONGi’s power consumption reduction v.s. base year target (2021-2023)

Energy utilization in the production process

In 2023, we further improved the energy utilization in the production process of our products, implemented technological transformation for the different products based on their characteristics (e.g. monocrystalline, wafer, cell, and module), and managed to save energy during the whole process.

  • Monocrystalline silicon
    • Using the waste heat of the air compressor, we can heat the pure water in the washing machine and increase its temperature by 25~30℃, thus saving the power originally required for the process
    • Estimated annual electricity savings 61.78 million kWh
    • 2023 specific electricity saving by product: 59,489.50 (10k kWh)