This Supplier Code of Conduct (“Code”) states the policy of Enphase Energy, Inc. and its subsidiaries (collectively, “Enphase”, “we”, “us” “our”) to conduct business with integrity, ensure working conditions across the supply chain are safe, treat workers with respect and dignity, operate in a socially and environmentally responsible manner, and conduct business ethically and legally, worldwide. This Code applies to all suppliers, vendors, consultants, and business partners of Enphase (collectively, “Enphase Suppliers”). While conducting business with or on behalf of Enphase, Enphase Suppliers and their employees, agents, and subcontractors must acknowledge and abide by this Code, and all Enphase Suppliers are expected to implement effective policies to ensure compliance with this Code and all applicable laws and regulations. Enphase Suppliers are those entities including, but not limited to, those engaged in:
Manufacturing products, packaging, parts, components, subassemblies, materials, or otherwise involved in processes related to any of the foregoing; and
Providing products or services to, or on behalf of Enphase, regardless of type, location, or duration.
This Code is modeled after the Responsible Business Alliance Code of Conduct (“RBA Code”), which embodies a set of standards for labor, health and safety, the environment, business ethics, and systems for managing conformity to the RBA Code.
If you are an Enphase Supplier who has questions or concerns regarding the Code, please direct them to firstname.lastname@example.org.
Enphase has established a whistleblower hotline via which you may report any violations of this Code anonymously. Please see section “Reporting Violations and Non-Retaliation" below.
This Code draws from industry and internationally accepted principles such as the Responsible Business Alliance (RBA) formerly known as the Electronic Industry Code of Conduct (EICC), International Labor Organization’s (ILO) International Labor Standards, ILO Declaration on Fundamental Principles and Rights at Work, United Nations Universal Declaration of Human Rights, United Nations Guiding Principles on Business and Human Rights, Social Accountability International, SA 8000, the ILO’s Code of Practice in Safety and Health, Organisation for Economic Co-operation and Development (OECD) Guidelines for Multinational Enterprises, the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas, ISO 14001, and ISO 45001.
Respect for Others
Enphase Suppliers are expected to uphold the human rights of workers and treat them with dignity and respect as understood by the international community, including honest efforts to eradicate forced labor and human trafficking across supply chains. This applies to all workers including temporary, migrant, student, contract, direct employees, and any other type of worker. Please refer to our Human Rights Policy for more information.
Freely Chosen Employment
Forced, bonded (including debt bondage) or indentured labor, involuntary or exploitative prison labor, slavery or trafficking of persons shall not be used. This includes transporting, harboring, recruiting, transferring, or receiving persons by means of threat, force, coercion, abduction, or fraud for labor or services. There shall be no unreasonable restrictions on workers’ freedom of movement in facilities in addition to unreasonable restrictions on entering or exiting company provided facilities.
As part of the hiring process, contracts shall clearly convey the conditions of employment in a language understood by the workers. All work must be voluntary, and workers shall be free to leave work at any time or terminate their employment. Employers and agents may not hold or otherwise destroy, conceal, confiscate, or deny access by employees to their identity or immigration documents, such as government-issued identification, passports, or work permits, unless such holdings are required by law.
Workers shall not be required to pay employers’ or agents’ recruitment fees or other related fees for their employment. If any such fees are found to have been paid by workers, such fees shall be repaid to the worker.
Enphase Suppliers shall employ only workers who are at least 15 years of age, the applicable minimum legal age for employment, or the applicable age for completion of compulsory education, whichever is highest. The use of legitimate workplace learning programs that comply with all applicable laws and regulations is supported. Workers who are older than the applicable legal minimum age but are under the age of 18 shall not perform work that is likely to jeopardize their health or safety, including night shifts and overtime. Enphase Suppliers shall ensure proper management of student workers through proper maintenance of student records, rigorous due diligence of educational partners, and protection of students’ rights in accordance with applicable law and regulations. In the absence of local law, the wage rate for student workers, interns and apprentices shall be at least the same wage rate as other entry-level workers performing equal or similar tasks.
Studies of business practices clearly link worker strain to reduced productivity, increased turnover, and increased injury and illness. Working hours are not to exceed the maximum set by local law. Further, a workweek should not be more than 60 hours per week, including overtime, except in emergency or unusual situations. At a minimum, workers shall be allowed at least one day off every seven days and regular workweeks shall not exceed 48 hours.
Wages and Benefits
Compensation paid to workers shall comply with all applicable wage laws, including those relating to minimum wages, overtime hours, and legally mandated benefits. In compliance with local laws, workers shall be compensated for overtime at the legal premium rate. Deductions from wages as a disciplinary measure shall not be permitted. For each pay period, workers shall be provided with a timely and understandable wage statement that includes sufficient information to verify accurate compensation for work performed. All use of temporary, dispatch, and outsourced labor will be within the limits of the local law.
There is to be no harsh and inhumane treatment including any sexual harassment, sexual abuse, corporal punishment, mental, or physical coercion or verbal abuse of workers; nor is there to be the threat of any such treatment. Disciplinary policies and procedures in support of these requirements shall be clearly defined and communicated to workers.
Enphase is committed to creating a workforce free of harassment and unlawful discrimination. Enphase Suppliers shall not engage in discrimination based on race, color, age, gender, sexual orientation or identification, gender identity and expression, ethnicity or national origin, disability, pregnancy, caste, religion, political affiliation, union membership, covered veteran status, protected genetic information, or marital status in hiring and employment practices such as wages, promotions, rewards, and access to training. Workers shall be provided with reasonable accommodation for religious practices. In addition, workers or potential workers should not be subjected to medical tests or physical exams that could be used in a discriminatory way or for a discriminatory purpose.
Freedom of Association
Enphase Suppliers shall respect the right of all workers to form and join (or refrain from joining) trade unions of their own choosing, to bargain collectively, and to engage in peaceful assembly as well as respect the right of workers to refrain from such activities. Workers and/or their representatives shall be able to openly communicate and share ideas and concerns with management regarding working conditions and management practices without fear of discrimination, reprisal, intimidation, or harassment.
Third Party Employment Agencies
Enphase Suppliers shall ensure that the third-party employment agencies it uses are compliant with the provisions of this Code and the law.
Health and Safety
Enphase strives to meet the requirements set forth in the ISO 45001 standard and ILO Guidelines on Occupational Health and Safety, outlined below, and expects all Enphase Suppliers to adhere to the same high standards.
Occupational Safety and Industrial Hygiene
Worker potential for exposure to health and safety hazards (chemical, biological, electrical and other energy sources, fire, vehicles, and fall hazards, etc.) are to be identified, assessed, and mitigated by either eliminating the hazard, substituting processes or materials, controlling through proper design, implementing engineering and administrative controls, preventative maintenance and safe work procedures (including lockout/tagout), or providing ongoing occupational health and safety training. Where hazards cannot be adequately controlled by these means, workers are to be provided with appropriate, well maintained, personal protective equipment, and educational materials about risks to them associated with these hazards. Reasonable steps must also be taken to remove pregnant women and nursing mothers from working conditions with high hazards, remove or reduce any workplace health and safety risks to pregnant women and nursing mothers, including those associated with their work assignments, and provide reasonable accommodations for nursing mothers. Enphase Suppliers shall have their own policies in place, the objective of which shall be to comply with all applicable laws to ensure occupational health and safety, as well as a healthy and safe work environment.
Potential emergencies are to be identified and assessed, and their impact minimized by implementing emergency plans and response procedures including emergency reporting, employee notification and evacuation procedures, worker training, and drills. Emergency drills must be executed at least annually or as required by local law, whichever is more stringent. Emergency plans should also include appropriate fire detection and suppression equipment, clear and unobstructed egress, adequate exit facilities, contact information for emergency responders, and recovery plans. Such plans and procedures shall focus on minimizing harm to life, the environment, and property.
Occupational Injury and Illness
Procedures and systems shall be put in place to prevent, manage, track, and report occupational injury and illness, including provisions to encourage worker reporting, classify and record injury and illness cases, provide necessary medical treatment, investigate cases, implement corrective actions to eliminate their causes, and facilitate the return of workers to work.
Physically Demanding Work
Worker exposure to the hazards of physically demanding tasks, including manual material handling and heavy or repetitive lifting, prolonged standing, and highly repetitive or forceful assembly tasks is to be identified, evaluated, and controlled.
Production and other machinery shall be evaluated for safety hazards. Physical guards, interlocks, and barriers are to be provided and properly maintained where machinery presents an injury hazard to workers.
Sanitation, Food, and Housing
Workers shall be provided with ready access to clean toilet facilities, potable water and sanitary food preparation, storage, and eating facilities. Worker dormitories provided by Enphase Suppliers are to be maintained to be clean and safe, and provided with appropriate emergency egress, hot water for bathing and showering, adequate lighting and heat and ventilation, individually secured accommodations for storing personal and valuable items, and reasonable personal space along with reasonable entry and exit privileges.
Health and Safety Communication
Appropriate workplace health and safety information shall be provided to workers and training in the language of the worker or in a language the worker can understand shall be given for all identified workplace hazards that workers are exposed to, including but not limited to mechanical, electrical, chemical, fire, and physical hazards. Health and safety related information shall be clearly posted in the facility or placed in a location identifiable and accessible by workers. Training is provided to all workers prior to the beginning of work and regularly thereafter. Workers shall have the right to refuse unsafe work and to report unhealthy working conditions without fear of retaliation.
Enphase recognizes that environmental responsibility is integral to producing world-class products. All Enphase Suppliers are expected to understand the impacts their operations have on the environment and minimize adverse effects on the community, environment, and natural resources within their manufacturing operations to the fullest extent possible. Recognized management systems such as ISO 14001 and the Eco Management and Audit System (EMAS) were used as references in preparing the Code and may be a useful source of additional information. Please refer to Enphase’s Global Environmental Policy for more information.
Environmental Permits and Reporting
All required environmental permits (e.g., discharge monitoring), approvals and registrations are to be obtained, maintained, kept current, and their operational and reporting requirements are to be followed. Pollution Prevention and Resource Reduction Emissions and discharges of pollutants and generation of waste are to be minimized or eliminated at the source or by practices such as adding pollution control equipment; modifying production, maintenance, and facility processes; or by other means. The use of natural resources, including water, fossil fuels, minerals, and virgin forest products, is to be conserved or by practices reduced such as modifying production, maintenance and facility processes, materials substitution, re-use, conservation, recycling, or other means.
Chemicals and other materials posing a hazard to humans or the environment are to be identified, labelled, and managed to ensure their safe handling, movement, storage, use, recycling or reuse and disposal.
Enphase Suppliers shall implement a systematic approach to identify, manage, reduce, and responsibly dispose of or recycle solid waste (non-hazardous).
Air emissions of volatile organic chemicals, aerosols, corrosives, particulates, ozone depleting chemicals and combustion by-products generated from operations are to be characterized, routinely monitored, controlled, and treated as required, prior to discharge. Enphase Suppliers shall conduct routine monitoring of the performance of their air emission control systems.
Enphase Suppliers are to adhere to all applicable laws, regulations and customer requirements regarding prohibition or restriction of specific substances in products and manufacturing, including labeling for recycling and disposal.
Water Management Enphase Suppliers shall implement a water management program that documents, characterizes, and monitors water sources, use and discharge; seeks opportunities to conserve water; and controls channels of contamination. All wastewater is to be characterized, monitored, controlled, and treated as required prior to discharge or disposal. Enphase Suppliers shall conduct routine monitoring of the performance of its wastewater treatment and containment systems to ensure optimal performance and regulatory compliance.
Energy Consumption and Greenhouse Gas Emissions
Energy consumption and all relevant scopes 1 and 2 greenhouse gas emissions are to be tracked and documented, wherever possible, at the facility and/or corporate level. Enphase Suppliers shall seek cost effective methods to improve energy efficiency and to minimize their energy consumption and greenhouse gas emissions.
To meet social responsibilities and to achieve success in the marketplace, Enphase Suppliers and their agents must uphold the highest standards of ethics.
The highest standards of integrity must be upheld in all business interactions. Enphase Suppliers shall have a zero-tolerance policy that prohibits all forms of bribery, corruption, extortion, and embezzlement.
No Improper Advantage
Enphase Suppliers are prohibited from offering, providing, or accepting gifts and entertainment that are (a) excessive in value, (b) in cash, (c) susceptible of being construed as a bribe or kickback, or (d) in violation of any laws. This principle applies to transactions everywhere in the world, even where the practice is widely considered “a way of doing business” and it also applies to relationships with customers, government officials, vendors, and other parties. Appropriate levels of business entertainment in connection with legitimate business transactions or development of business relationships is generally allowable under this Code if the value is not unreasonable. Enphase Suppliers shall have a policy relating to its business with Enphase that prohibits the giving and acceptance of gifts.
The U.S. Foreign Corrupt Practices Act, the UK Bribery Act, and other similar laws (collectively “Anti-Bribery Laws”) prohibit offering, promising, or giving “anything of value,” or providing an “advantage” to another person or entity with the intent of inducing that person or entity to take any improper action or rewarding that person for taking an improper action.
Avoiding Conflicts of Interest
A “conflict of interest” exists when a person’s private interest interferes in any way with the interests of Enphase. Conflicts of interest may arise when an Enphase Supplier, or a member of their family, receives improper personal benefits as a result of their relationship with Enphase. A conflict of interest can also arise when an Enphase Supplier takes actions or has interests that make it difficult to perform their work objectively and effectively. Conflicts of interest are prohibited, unless expressly approved by Enphase.
Disclosure of Information
All business dealings should be transparently performed and accurately reflected on Enphase Suppliers’ business books and records. Information regarding participant labor, health and safety, environmental practices, business activities, structure, financial situation, and performance is to be disclosed in accordance with applicable regulations and prevailing industry practices. Falsification of records or misrepresentation of conditions or practices in the supply chain are unacceptable.
Intellectual property rights are to be respected; transfer of technology and know-how is to be done in a manner that protects intellectual property rights; and customer and supplier information is to be safeguarded. No Enphase products, software, or technology shall be exported to a location outside of the United States in violation of U.S. export regulations.
Fair Business, Advertising, and Competition
Enphase is committed to complying with applicable antitrust and competition laws and expects Enphase Suppliers to compete fairly and honestly for all business opportunities. Enphase Suppliers shall have in place their own policies that comply with all applicable laws in relation to competition and fair dealing and shall endeavor to foster a culture which promotes fairness and honesty in all business dealings.
Customer relationships are the bedrock of Enphase’s business and Enphase Suppliers must never engage in misleading or deceptive practices. Any Enphase Supplier advertising, marketing, or promotional activities that references Enphase, its logo, trademarks, or products or services must comply with applicable laws and regulations and must be truthful and accurate.
Reporting Violations and Anonymous Complaints
Enphase Suppliers shall provide an anonymous complaint mechanism for managers and workers to report workplace grievances. Enphase Suppliers shall protect whistleblower confidentiality and prohibit retaliation. Enphase has established a Whistleblower Hotline at (866) 388-3117 and a web portal at https://www.whistleblowerservices.com/enph, for those who wish to report violations anonymously. Enphase Suppliers will not be required to reveal their identity when they contact the Whistleblower Hotline, although providing their identity may assist in our investigation. Enphase shall prohibit retaliation.
Reports regarding Enphase concerning accounting, internal accounting controls or auditing matters will be directed to the Enphase Audit Committee of the Board of Directors, which shall take responsibility for conducting or overseeing any investigation that is undertaken.
Responsible Sourcing of Minerals
Enphase Suppliers and their agents shall comply with Enphase’s Conflict Mineral Policy, designed to reasonably assure that the tantalum, tin, tungsten, and gold used in Enphase products are sourced in a manner consistent with the Organisation for Economic Co-operation and Development (OECD) Guidance for Responsible Supply Chains of Minerals from Conflict Affected and High-Risk Areas or an equivalent and recognized due diligence framework. Enphase Suppliers shall exercise due diligence on the source and chain of custody of these minerals and make their due diligence measures available to Enphase upon request.
Enphase Suppliers shall adopt or establish a management system with a scope that is related to the content of this Code. The management system shall be designed to ensure: (a) compliance with applicable laws, regulations and customer requirements related to the participant’s operations and products; (b) conformance with this Code; and (c) identification and mitigation of operational risks related to this Code. It should also facilitate continual improvement.
Enphase Suppliers shall publicly disclose corporate social and environmental responsibility policies statements affirming their commitment to compliance and continual improvement, endorsed by executive management, and posted in the local language.
Management Accountability and Responsibility
Enphase Suppliers shall clearly identify senior executive and company representative(s) responsible for ensuring implementation of the management systems, associated programs, and for reviewing the status of the management systems on a regular basis.
Compliance with Laws, Rules, and Regulations
Enphase Suppliers are expected to comply with the laws in all countries in which they operate, travel, or otherwise do business, including laws prohibiting bribery, corruption, or the conduct of business with specified individuals, companies, or countries. The fact that certain laws may not be strictly enforced will not be accepted as an excuse for noncompliance. As mentioned above, Anti-Bribery Laws prohibit giving anything of value in order to influence any improper action. Anti-Bribery Laws also require the maintenance of accurate books of account, with all transactions being properly recorded.
Enphase Suppliers are responsible for understanding how trade laws and regulations – including U.S. government economic sanctions and trade embargoes – apply to their business activities and the geographies in which the Enphase Supplier operates. Enphase Suppliers are also responsible for taking steps and implementing controls to ensure that Enphase products, technology, data, information, programs, and/or materials are not exported or reexported in violation of applicable law.
Anti-boycott restrictions prohibit Enphase from taking any action that has the effect of furthering or supporting a restrictive trade practice or boycott that is fostered or imposed by a foreign country against a country or person friendly to the U.S. Enphase Suppliers must not request that Enphase agree not to do business with one or more countries.
Risk Assessment and Risk Management
Enphase Suppliers shall implement a process to identify the legal compliance, environmental, health and safety, and labor practice and ethics risks associated with operations, determine the relative significance for each risk, and implement appropriate procedural and physical controls to control the identified risks and ensure regulatory compliance.
Written performance objectives, targets and implementation plans to improve social, environmental, and health and safety performance, including a periodic assessment of performance in achieving those objectives shall be conducted by Enphase Suppliers.
Enphase and Enphase Suppliers shall implement programs for training managers and workers to adhere to Enphase policies, procedures, and improvement objectives applicable to Enphase Suppliers and to meet applicable legal and regulatory requirements.
A process for communicating clear and accurate information about Enphase policies, practices, and expectations to workers, suppliers, and customers shall be implemented by Enphase and Enphase Suppliers.
Worker Feedback, Participation, and Grievance
Ongoing processes, including an effective grievance mechanism, shall be implemented to assess employees’ understanding of and obtain feedback on or violations against practices and conditions covered by this Code and to foster continuous improvement. Workers must be given a safe environment to provide grievance and feedback without fear of reprisal or retaliation.
Supply Chain Audits and Assessments
Enphase may audit Enphase Suppliers or inspect Enphase Suppliers’ facilities to confirm compliance with this Code and any applicable laws and regulations. Given reasonable suspicion that an Enphase Supplier is in violation of any aspect of this Code or applicable law or regulation, Enphase may terminate the business relationship or impose restrictions on future business until violations are redressed to Enphase’s satisfaction. Enphase will require Enphase Suppliers comprising at least 80% of total procurement spend, including new vendors, to acknowledge and implement this Code. Statements of compliance shall be executed by a senior management representative of the Enphase Supplier.
Documentation and Records
Enphase Suppliers shall create and maintain documents and records in a manner that ensures regulatory compliance and conformity to the requirements set forth in this Code.
Approvals or Waivers
Any exception or waiver to the provisions of this Code must be pre-approved in writing by the Enphase. Any such approval or waiver related to an Enphase executive officer or director also requires authorization by the Audit Committee of the Board of Directors and may also require public disclosure under SEC rules.