LONGi’s Commitment to Sustainable Procurement and Supply Chain Resilience
In a groundbreaking move for the solar industry, LONGi has achieved the ISO 20400 certification for sustainable procurement, setting a new standard for responsible practices. This certification reflects the company’s proactive approach to integrating environmental, social, and governance (ESG) standards throughout its supply chain. With an ambition to foster sustainability at every level, LONGi emphasizes lessons learned in building a resilient supply chain, including how they enforce ESG across tiered suppliers.
Establishing a Structured Supply Chain Management
LONGi’s supply chain management is structured into a three-tier system: Decision-making Level, Leadership Level, and Execution Level. The corporate governance model features a Strategy and Sustainability Committee, responsible for defining strategic directions, while the Group Strategy Management Committee offers leadership and oversight. The Supply Chain Management Center executes daily operations, ensuring that sustainability principles are integrated effectively. This collaborative approach allows LONGi to ensure that sustainable procurement is woven throughout its procurement lifecycle and that all partners in the supply chain adopt green practices.
Sustainable Procurement Practices
LONGi aims to drive green transformation across its industrial chain. Through the LONGi Supplier Code of Conduct, signed by all suppliers, the company mandates that partners prioritize environmental protection. Key suppliers must obtain the ISO 14001 Environmental Management System certification, aligning their operations with long-term sustainability goals.
To minimize the environmental impacts of raw materials, LONGi collaborates with upstream suppliers, advocating for the use of circular and renewable materials and avoiding sourcing from biodiversity-critical regions. Significant efforts such as the Sustainable Procurement Policy and Guidelines promote green practices that resonate across the supply chain.
Rigorous Audits and Capacity Building
In 2024, LONGi undertook a comprehensive evaluation of its suppliers. This included questionnaire-based assessments and on-site audits of 123 new and 136 qualified suppliers, identifying issues spanning environmental and social concerns. The audits revealed 1,768 total issues, including 133 environmental and 870 social problems. The company’s ESG team, alongside third-party auditors, ensures that stringent ESG audits are performed for critical suppliers in silicon materials and module components.
LONGi has also launched a Supplier ESG Capacity Building Plan. This initiative aims to increase the percentage of procurement spending from key Tier 1 suppliers participating in capacity-building programs to 95% by 2028. Their e-Learning Supplier Platform provides training and technical support to suppliers, promoting sustainable development concepts and helping them enhance ESG management.
Traceability and Transparency at the Forefront
As regulatory scrutiny grows, LONGi recognizes the imperative for traceability and transparency in its operations. The company has developed a robust traceability system from the ground up, adhering to ISO 9001:2015, with a strict three-tier control mechanism for transparency management. This system facilitates thorough traceability audits of its production chain, encompassing over ten factories involved in various stages of solar module and component production.
In 2024, LONGi initiated a pilot of the TSS online traceability service, allowing clients to experience end-to-end product traceability. This service not only enhances operational transparency but also provides clients with a more efficient traceability experience spanning both silicon and non-silicon materials.
Balancing Innovation and Sustainability
LONGi has introduced innovative products like the Hi-MO X10 modules and TaiRay wafers, maintaining a balance between sustainability and performance. The company is committed to defining R&D decisions that not only prioritize innovation but also consider the long-term effects on the environment.
Commitment to Energy Equity
LONGi’s partnership with the UNHCR underscores its commitment to energy equity. The installation of high-efficiency solar modules at UN hubs in Uzbekistan has significantly reduced reliance on traditional power sources, translating to lower operational costs and a reduction in greenhouse gas emissions.
For example, in Pakistan, LONGi has supported educational initiatives that have led to the enrollment of over 56,000 refugee students, enhancing educational access for underserved communities. This commitment underpins a larger vision where energy equity plays a pivotal role in humanitarian efforts and sustainable development.
Global Community Investment
Beyond its partnership with the UNHCR, LONGi actively engages in community investment initiatives. In Mozambique, the company has implemented photovoltaic systems that power water pumps for local maternity clinics, directly contributing to maternal and infant health. Collaborations in Brazil have enabled the donation of solar modules to communities without stable electricity, providing solutions for basic needs and reducing energy costs.
These efforts demonstrate a commitment to safeguarding human rights and enhancing living standards through sustainable energy solutions.
Employee Care Amidst Industry Challenges
In the face of challenges within the solar industry, LONGi maintains a people-centered approach to employee care. The company emphasizes diversity and has initiated programs to support professional development, aligning with the Women’s Empowerment Principles. Their commitment extends to comprehensive health and benefits management to foster a supportive workplace.
Continuous Improvement in ESG Ratings
LONGi ranks among the top in various ESG indices, including the EcoVadis Gold Medal. The company is on a trajectory to improve its ratings further, focusing on frameworks like TCFD, TNFD, SBTi, and CDP compliance. LONGi aims to enhance its Sustainalytics score and secure the highest MSCI rating in the photovoltaic sector.
Through meticulous planning and proactive engagement with rating agencies, LONGi seeks to closely align its performance with global sustainability standards, addressing any gaps in perception.
Path to Zero-Carbon and Renewable Energy Goals
LONGi achieved ‘zero-carbon factory’ status at its Jiaxing base, serving as a model for future facilities. The company’s strategy involves maximizing renewable energy use, enhancing energy efficiency, and offsetting emissions through carbon credits, with plans to replicate this success across additional sites by 2025.
In pursuit of a 100% renewable energy target, LONGi’s strategy includes a mix of on-site solar installations and Power Purchase Agreements (PPAs). Collaboration with energy providers ensures that new manufacturing sites are designed for renewable energy integration.
Membership in the Solar Stewardship Initiative
Joining the Solar Stewardship Initiative signals LONGi’s dedication to responsible supply chain practices. The company is preparing for a dual ESG and traceability audit and aims to actively engage in the initiative to help establish sustainability standards that reflect the realities of suppliers, particularly in Asia.
Responding to Regulatory Changes
As the global landscape of ESG regulation evolves, including recent shifts in the EU, LONGi views these changes as opportunities for introspection and improvement in supply chain management practices. Their forward-looking strategy positions the company to continually adapt and respond to emerging challenges while maintaining a firm commitment to sustainability.
In the years leading up to 2030, LONGi envisions its role in the global energy transition as transformative, with a mission focused on universal access to solar energy. The company aims to contribute meaningfully to sustainable development on a global scale, striving to create an equitable future through solar innovation and commitment to responsible practices across its operations and community engagement.