Supplier selection The success of our products would not be possible without positive and long-lasting relationships with suppliers and partners that share our values of high quality, design, and sustainability. We work closely with all our contract manufacturers —from onboarding to customer delivery —to ensure that our products are made to the highest ethical, environmental, and socially responsible standards. “The success of our products We provide a Supplier Quality Assurance Manual that outlines our expectations of new would not be possible without and continuing partners. We are committed to producing high quality, reliable, and positive and long-lasting cost-e昀昀ective products that are shipped on time, provide customer value, and conform relationships with suppliers and to national and international requirements. We, along with our customers, demand and partners that share our values of expect defect-free products and services. Prior to onboarding, all potential suppliers are high quality, design, and rigorously screened for performance on over 100 factors related to quality, environmental stewardship, and social responsibility such as: sustainability.” • Presence of a certi昀椀ed ISO 9001 or ISO/TS 16949 Quality Management System (QMS) • Presence of a certi昀椀ed ISO 14001 Environmental Management System (EMS) • Presence of an environmental policy, and • Published REACH and RoHS compliance Auditing procedures We maintain Enphase employee presence at all contract manufacturing locations to ensure that rigorous standards for quality and environmental and social sustainability are upheld throughout the duration of the manufacturing partnership. All contract manufacturers are subject to supplier audits covering environmental, social, and sustainability criteria. For each contract manufacturer, we complete one audit, issue any corrective actions, and document corrective actions taken during a follow-up audit. Contract manufacturing audits are completed at least annually by our on-site teams. We plan to extend our auditing procedures to additional strategic 昀椀rst tier hardware component suppliers in the future. • 100% of CMs are certi昀椀ed to ISO 14001 Environmental Management System (EMS) • 100% of CMs are certi昀椀ed to ISO 9001 or ISO/TS 16949 Quality Management System (QMS) * Table 10: Supply chain auditing Environmental Social Health and Contract Corrective non- non- safety non- manufacturers action compliance compliance compliance issued completion corrective ** rate (%) rate (%) rate (%) actions (%) rate (%) 9% 3% 0% 100% 88% *Contract manufacturing partners only **Remaining unresolved corrective actions to be completed in 2024 ENVIRONMENTAL, SOCIAL, AND GOVERNANCE REPORT 2023 57