Enphase Energy : ESG Report (esg report 2024 page 9)

Enphase Energy, Inc.

Sustainability Report

SUSTAINABILITY REPORT 2024 1

2024

Enphase Energy, Inc.

Sustainability Report

2024

About us

Environmental

Social

Governance

Appendix

Contents

A letter from our President and CEO 04

05

06

Enphase in numbers 07

Our purpose 08

Our core values 09

Enphase culture playbook 10

Our technology 12

Financial sustainability 14

16

E1. Our approach 17

E2. Clean energy production 18

E3. Energy and emissions 19

E4. Product quality 23

E5. Responsible supply chain 27

E6. Case studies 31

38

S1. Company demographics 39

S2. Attracting and retaining the best 40

S3. Enabling growth and advancement 42

S4. Cultivating a fair and supportive workplace 43

S5. Customer experience 45

S6. Corporate Social Responsibility 46

50

G1. Oversight and management 51

G2. Business ethics and compliance 52

G3. Data privacy, cybersecurity, intellectual property 53

56

Workforce policies 57

Environmental impact accounting 58

GRI and SASB index 61

Climate risk 63

United Nations Sustainable Development Goals 68

About this report 70

Forward-looking statements and other important legal information 71

GAAP to non-GAAP reconciliation 72

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Badri Kothandaraman

President and CEO

"As the world's leading supplier of microinverter-based solar and battery systems, we recognize our responsibility to promote sustainable practices and contribute to building a safe and equitable environment worldwide."

A Letter from our President and CEO

I am pleased to share our 2024 Sustainability Report with you, where we discuss our ongoing efforts to realize Enphase's purpose: "Advancing a sustainable future for all." As the world's leading supplier of microinverter-based solar and battery systems, we recognize our responsibility to promote sustainable practices and contribute to building a safe and equitable environment worldwide.

We continue to integrate principles into our business that drive sustainable growth and longterm value. Our focus remains on clean energy innovation, operational excellence, employee relations, and strong governance. As you read this report, you will see several examples of how we incorporate environmental safeguards, strive for operational excellence, and focus on the responsible hiring, training, and managing of our global workforce. We are also continuing to expand access to clean energy through our Corporate Social Responsibility (CSR) efforts, and stay accountable through our leadership and governance practices.

Since inception, we have shipped more than 80 million microinverters and 1.69 GWh of IQ® Batteries. Approximately 4.7 million Enphase-based systems have been deployed in over 160 countries. We have shipped approximately 28.10 GW DC power of Enphase microinverters, preventing the release of 72 million metric tons of carbon dioxide equivalent (MTCO2e) - the equivalent of powering 14.9 million homes for one year.1 Those are not just numbers - they represent energy independence, resilience, and progress for individuals, families, small businesses, and communities around the world.

We have made progress in managing our carbon footprint since the publication of our inaugural Environmental, Social, and Governance (ESG) Report in 2020. In 2024, we reported a 13.4% decrease in Scope 2 emissions, compared to 2023. In 2024, we began sourcing renewable energy for all facilities where local utilities offer green tariff programs and increased on-site generation capacity to more than one megawatt (MW), bringing our renewable energy mix up to 80%.

We had a challenging time in 2024 due to sustained unpredictability in the solar industry. Despite market headwinds - including high interest rates in the United States and policy uncertainty in Europe - we maintained a disciplined focus on operational efficiency and cost control. Our culture playbook is a reminder of how our strong culture enabled us to remain aligned on strategic priorities while continuing to innovate.

"Our company embraces the opportunity to create a future of sustainable prosperity for all our stakeholders, by making it possible for people to become producers and participants in a clean energy future − when people and the planet need it most."

I am proud of our team's ongoing dedication to developing technology and products that support energy independence and grid stability. By the end of 2024, we were shipping our IQ8™ Microinverters into 57 countries. We also introduced new products, including microinverters designed for small-commercial solar applications, our FlexPhase battery that supports both single-phase and three-phase applications, our smart electrical vehicle (EV) chargers, and our IQ PowerPack 1500 portable energy system. We also made progress on our next-generation energy systems, laying the groundwork for smarter, more resilient homes and businesses.

The passing of the Inflation Reduction Act (IRA) by the U.S. Congress in 2022 enabled us to begin manufacturing in the United States, helping to create new jobs and advance the country's clean energy economy. By the end of 2024, we were shipping our IQ8HC™ Microinverters, IQ8X™ Microinverters, IQ8P-3P™ Commercial Microinverters, and IQ® Battery 5Ps from our contract manufacturing facilities in the United States. With higher domestic content than previous generations, these products, when paired with other U.S.-made solar components, helped our customers qualify for the IRA's domestic content bonus credit.

I am proud of our ongoing sustainability efforts and remain optimistic for what the future holds. Enphase was founded on three commitments that still guide us today: innovation, quality, and customer experience. Our company embraces the opportunity to create a future of sustainable prosperity for all our stakeholders, by making it possible for people to become producers and participants in a clean energy future − when people and the planet need it most. I look forward to continuing to share our progress.

I would like to thank our employees for their continued hard work and dedication, and our customers, partners, and shareholders for their strong support. I appreciate your interest and engagement in our sustainability efforts.

Sincerely,

Badri Kothandaraman

President and CEO

1 Approximate values as of December 31, 2024. CO2e calculations based on 107 TWh of clean energy production

4 under the U.S. Environmental Protection Agency (U.S. EPA) Greenhouse Gas (GHG) Equivalencies Calculator

SUSTAINABILITY REPORT 2024 5

‌About us

Enphase in numbers

2006

2,781

7,500+

28.10 GW DC

the year Enphase was founded

employees and key contributors across our global offices1

installers worldwide1

cumulative shipments of microinverters1

million

80 million

1.69

GWh

107 TWh

systems deployed in more than 160 countries1

microinverters shipped1

of storage1

of clean energy production2

72 million

8.1

billion

183

billion

MTCO₂e prevented from entering the atmosphere, enough to power

14.9 million homes with energy for one year3

gallons of gasoline not consumed3

miles not driven by an average gas-powered passenger vehicle3

1 Approximate values as of December 31, 2024

2 Cumulative estimate based on Enphase managed systems data from 2006 through December 31, 2024 grossed up for non-managed systems based on historical production records

3 CO2e calculations based on 107 TWh of clean energy production under the U.S. EPA GHG Equivalencies Calculator

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Our core values

Our company values are reflected in the way we work together, our performance, and how we are rewarded.

Quality

We place safety and quality above everything else.

We measure everything that matters and drive continuous improvement.

We make the highest quality products.

Teamwork

We appreciate and respect different behavioral styles and perspectives.

We collaborate globally to achieve more together than we can on our own.

We actively work to break down silos.

Customer first

We exist for our customers.

We listen to our customers and measure our success based on their feedback.

We take action to deliver the best customer experience.

Integrity

We tell the truth at all times, without making excuses.

We do what is best for the company.

We take ownership of our behaviors and results.

Innovation

We value innovation and recognize that it is the cornerstone of our existence.

We encourage appropriate risk-taking and challenge the status quo to find solutions.

We actively promote innovation through curiosity and continuous learning.

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Our

purpose

Advancing a sustainable future for all.

Enphase Energy is a global energy technology company and the world's leading supplier of microinverter-based solar-plus-storage systems. We design, develop, and deliver smart, easy-to-use home energy solutions that manage energy generation, energy storage, and control and communications on one intelligent platform. We are working every day to enable whole-home energy management powered by renewable energy, as well as creating a more resilient and reliable electricity grid for everyone.

Enphase transformed the solar industry with its revolutionary microinverter technology which turns sunlight into a safe, reliable, resilient, and scalable source of energy to power our lives. Today, our microinverters can be paired with our industry-leading batteries, EV chargers, and artificial intelligence (AI)-driven software, creating a comprehensive home energy management system. As we work towards an equitable energy future for all, we are aware of the importance of mobilizing the world to reduce the carbon footprint and electrify the planet.

Today, if you see a home with solar panels on it, there is a good chance it is an Enphase home. As of the end of 2024, more than 80 million microinverters were installed on approximately 4.7 million homes in over 160 countries,1 helping millions of people gain access to clean, affordable, and reliable energy while creating a more carbon-free future. We will continue to work hard to deliver high quality products that are advancing a sustainable future for all.

Enphase. Power by people.

1 Approximate values as of December 31, 2024

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