Q1 2023 Engagement case study: Hazardous chemicals at SolarEdge

SolarEdge manufactures inverters and power optimisers for residential and commercial solar systems. Solar inverters convert the DC power produced by solar panels to AC, which is used to power electronic appliances and devices. SolarEdge’s accompanying power optimisers are fitted to each solar module and track the maximum power point of each individual panel, increasing the energy output of the overall solar system. The company also manufactures energy storage solutions and electric vehicle (EV) chargers for residential use and is also involved in manufacturing components for electrical powertrain units and batteries for EVs. SolarEdge is headquartered in Israel but listed on the US stock exchange.


Collaborative engagement on human rights and hazardous chemicals in the solar supply chain.

Background / issue

We consider SolarEdge’s approach to regulations on hazardous chemicals to generally be very strong and were impressed that SolarEdge is one of few companies to disclose the percentage of products dependent on chemicals of concern.  We are concerned, however, about the company’s reliance on contract manufacturers, which we feel may introduce vulnerabilities with respect to handling and monitoring chemicals of concern in manufacturing.


We led the engagement with the company on behalf of a group of shareholders. We initially wrote to the Head of ESG at SolarEdge to request a meeting to discuss the company’s commitment to responsible sourcing and operations as it relates to the critical intersection between worker health and safety, protection of human rights, and safer chemical use. As per our escalation policy, we sent a chaser in January 2023 having not received a response to our initial letter in November 2022.


Unsuccessful/No milestone achieved. We are currently reviewing our engagement plan on this issue at SolarEdge in order to decide the best course of action.