The European solar industry’s Solar Stewardship Initiative (SSI) has published the new environmental, social, and corporate governance (ESG) standard.
The SSI ESG standard is based on existing international standards. For companies active in the solar value chain, the new standard creates a “one-stop-shop to independently validate ESG commitment at production sites”.
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The standard covers requirements to address environmental, social and governance sustainability for sites engaged in manufacturing of polysilicon, ingots, wafers, cells and modules, and other component manufacturing. Key principles of the SSI ESG standard include governance and business ethics, environment — such as greenhouse gas (GHG) emissions, water and waste management — and human and labour rights. Several areas will be examined under each category.
SolarPower Europe and Solar Energy UK, creators of the SSI, said the new standard came following the conclusion of pilot testing taking place across 11 sites in China, Germany, and Norway, and public consultation of the criteria evaluated by the SSI.
A total of four conclusions were drawn from the draft SSI ESG standard. First, both associations said the collaborative approach of the SSI, between buyers and suppliers of solar PV modules, was successful, as pilot participants appreciated the exercise to build their ESG know-how.
Second, the eventual SSI ESG standard reinforced key areas, including the grievance mechanism, responsible sourcing requirements, working hours, and workplace emergency preparedness.
The third conclusion was that both the solar sector and the SSI could go even further on supply chain transparency. As part of the process of continual improvement, the SSI will establish a dedicated supply chain traceability standard in 2024.
For now, the SSI can certify a production site in the solar supply chain. After the publication of the supply chain traceability standard next year, the SSI will be able to certify exactly how each production site is connected, creating the so-called chain of custody.
Lastly, official recognition in legislation of industry assurance schemes will be critical to driving market uptake of the SSI, and developing the solar sector’s supply chain ESG credentials.
In the future, independent assessors will be used to certify the ESG performance of solar production sites.
“The new SSI ESG Standard is a true landmark for the solar PV industry. We now have an effective, solar-specific, compass to guide our supply chain sustainability journey,” said Walburga Hemetsberger, CEO of SolarPower Europe.
She added; “Efforts like the SSI should be recognised formally in upcoming EU legislation, to support the solar sector’s ability to deliver Europe’s sustainability commitments.”
The SSI was launched in October 2022, setting out the solar sector’s next steps in ensuring transparency and responsible production across the value chain.