ESG Initiatives
Environmental Considerations
Canadian Solar Asset Management K.K. (hereinafter referred to as “CSAM”) is an asset manager to Canadian Solar Infrastructure Fund, Inc. (hereinafter referred to as “CSIF”). Canadian Solar Project K.K. serves as a sponsor to CSAM and CSIF. Canadian Solar Inc. (hereinafter referred to as “CSI”), which is a parent company for CSP, has been listed on the Nasdaq Stock Market of the United States since 2006.
As a world-leading supplier of solar modules and a global developer of PV power plants, CSI announced in its “Sustainability Report 2019” that accumulatively, solar plants built and connected increased to over 5,600 MW by June 2020, around a 19% increase relative to 4,700 MW at the end of June 2019. It also says, “Our CO2 emissions for every kW module production (including glass, frame and other raw materials production) are reduced from 318.84 kg in 2018 to 308.96 kg in 2019 and 297.37 kg in 2020.”
The Canadian Solar Group has globally implemented emission reduction in its solar module production line and also has developed and managed solar plants which tangibly contribute for reduction of greenhouse gas emissions. As a member of the Canadian Solar Group, CSAM aims to boost its renewable energy facilities in Japan relevant mainly with solar energy output operations and contribute to a supply of clean energy via CSIF, while respecting CSI’s approach into the environment.
Considerations to the Society and Local Communities
The Canadian Solar Group has contributed to the society through initiatives to revitalize local communities and provide them with disaster aid in the following manner:
| ● | When the Kumamoto earthquakes occurred in April 2016, construction of CS Mashiki-machi Power Plant, which was being undertaken by CSP in Mashiki Town, Kumamoto, was suspended because the construction workers were residents of the town. CSP also provided the town with solar-power-rechargeable LED lights as relief goods. |
|---|---|
| ● | CSP and CSAM collaboratively offered consolatory donations to the Marumori-machi Town Government. The town, where CS Marumori-machi Power Plant is located, was severely hit by Typhoon Hagibis in October 2019. |
| ● | CSP constructed the Daisen Canadian Garden and donated it to the Daisencho Town Government in commemoration of the completion of CS Daisencho Power Plant and as part of its contribution to local communities under the concept of “an ambitious attempt for harmony between nature and large-scale solar power plant”. In addition, CSP repaired the Hima Jinja Shrine in the same town and donated an incense holder made of white granite to the Shimpukuji Temple. |
While CSP shall talk to the local municipalities, landowners and neighborhood with regard to various and solar plant construction during the development phase, CSAM shall strive to establish the sustainable long-term relationships with them once solar plants are built and connected to grid.
Compliance and Governance Structure
CSAM has created its guidelines on asset management towards CSIF (hereinafter, the “Asset Management Guidelines”), in which the basic approach to asset management is stipulated. The Asset Management Guidelines are followed in the creation of medium-term investment plans, annual investment plans, and other plans in acquiring new PV projects and dealing with related-party transactions. In addition, to prevent bribery and corruption, the Compliance Manual stipulates that CSAM employees shall not engage in misconduct such as bribery, embezzlement, and money laundering, and those who have engaged in misconduct are subject to strict punishment.