Repairability During 2023, we introduced the ability to service batteries and other balance of system (BOS) components in the 昀椀eld by swapping components rather than replacing the entire product. This helps to reduce system downtime, improve customer satisfaction, and better the overall environmental pro昀椀le of our products. Every component swap in the 昀椀eld ultimately reduces reliance on raw material inputs, avoids emissions and pollution related to product disposal, and extends product lifetime. We plan to expand this practice of 昀椀eld repairability to cover additional products in the future. “Every component swap in Waste management the 昀椀eld ultimately reduces Currently, we are primarily concerned with managing our electronic waste (e-waste), reliance on raw material inputs, hazardous waste, and universal waste responsibly across global operations. In 2023, we avoids emissions and pollution expanded our tracking and management to include operations in Germany, India, and related to product disposal, and New Zealand in addition to the United States. The overall waste is generated through R&D, extends product lifetime.” prototyping, and creating experimental apparatus for new product development and improvement across our product portfolio. Our dedication to building innovative, best-in- class products regarding safety, quality, and reliability requires extensive testing and failure analysis. Test equipment is disassembled or deconstructed, with the constituent parts recycled and reclaimed for future use, where possible. We make every e昀昀ort to divert these wastes from land昀椀lls by sending e-waste, hazardous waste, and universal waste to certi昀椀ed vendors who provide certi昀椀cates of destruction, outlining the percent composition, mass, and recycling method employed for each constituent material. 100% 100% waste diverted from land昀椀ll* RoHS, REACH, WEEE, and EU Battery Directive compliance We focus signi昀椀cant e昀昀orts on residential, commercial, and industrial battery disposal and recycling. We evaluate third-party recycling vendors for certi昀椀cations and compliance performance prior to engaging with them. Our battery recycler is certi昀椀ed to the R2 standard, which prohibits incineration as a disposal solution. All battery waste is processed thermally or chemically to recover valuable metals such as nickel, lithium, cobalt, and copper, with the remaining plastic and byproducts separated for recycling. This allows for valuable components to be reused as material inputs for new products. We design our batteries for long-term duration to decrease waste, using lithium iron phosphate (LFP) chemistry as the storage material. Beyond batteries, we are reviewing the methods of other third-party vendors to validate that material is diverted from land昀椀ll and developing a vendor audit program to verify the destination of generated waste. We promote our company’s commitment to recycling and preventing products and materials ending up in land昀椀lls through our internal training and compliance with applicable federal, state, and local regulations. Employees working in our R&D labs undergo additional annual training to ensure they understand how to properly dispose of any hazardous materials that are not eligible for our recycling programs. *Hazardous waste, e-waste and universal waste across Germany, India, New Zealand and United States operations” ENVIRONMENTAL, SOCIAL, AND GOVERNANCE REPORT 2023 31
ESG Report Page 30 Page 32