Sustainability Strategy and Materiality Assessment
Overview
This section provides insight into our ESG governance and outlines our approach to the development of Nextracker’s sustainability strategy and how stakeholder input shaped our priorities.
ESG Oversight
The Nominating, Governance and Public Responsibility Committee of our Board of Directors oversees our ESG strategy and the ESG executive council provides periodic updates to the NGPRC on progress.
In addition, we maintain an Executive Council and a cross-functional ESG Steering Committee to drive our sustainability strategy and initiatives. Our ESG Team meets regularly with the Executive Leadership Team, Executive Council, and the ESG Steering Committee to review our strategy, program, and progress.
Approach
We conducted research and analysis to understand what ESG topics are material, where we have risks and opportunities, and what might be important to our stakeholders, including suppliers and customers, before finalizing our sustainability strategic framework.
This initial phase of our strategic development included:
Deep peer analysis
Scanning our regulatory requirements across our geographic footprint
External review of ESG ratings agencies (e.g., ISS and MSCI) and reputable ESG frameworks (e.g., SASB and GRI)
An impact materiality assessment with stakeholder insights from our employees, customers, suppliers, industry representatives, community organizations, and our Board of Directors
A climate risk assessment
Building to Our Strategic Framework
Materiality Assessment
As a foundational step in our strategic planning, we wanted to understand the ESG topics important to our stakeholders. By conducting an ESG impact materiality assessment, we gathered valuable input to help shape our ESG strategic framework.
In FY24, we engaged a third-party partner to support the design and execution of our materiality survey. We selected materiality assessment topics based on key ESG factors from our Sustainability Accounting Standards Board (SASB) industry (Electrical & Electronic Equipment), Task Force on Climate-related Financial Disclosures (TCFD), and Global Reporting Initiative (GRI).
The assessment asked key stakeholders for feedback on the scope and direction of our ESG program. The responses deepened our understanding of what is most impactful for Nextracker and what is most important to our employees, customers, suppliers, industry representatives, community organizations, and our Board of Directors.
Materiality Assessment Process
Identify ESG Topics
Gathered input from global standards, frameworks, and industry-specific evaluation
Choose Stakeholder Set
Identified a cross-section of internal and external stakeholders
Design Survey
Structured topical questions for decision-useful results
Analyze Results
Reviewed quantitative and qualitative feedback from stakeholders
Assessment Results
Executive sessions reviewed results, adding business-specific considerations
Finalize Materiality Results
Identified 10 material topics
Results Assessment
The ESG lead and members of the ESG Executive Council met multiple times to review survey results, designed to ensure we heard from all stakeholders.
As a result, the reviewers prioritized 10 material topics. The four key pillars of our sustainability strategy reflect each of these topics, keeping us focused on what matters most to the groups with which we work, partner, and serve.
Material Topics
Products
Supply Chain Management
Sustainable Products and Innovation
Environment
GHG Emissions
Resource Efficiency
Social
Diversity, Equity, and Inclusion
Employee Health and Safety
Human Rights
Governance
Corporate Governance
Business Ethics
Cybersecurity
Stakeholder Engagement
We care what our stakeholders think. Open communication is a top priority, and we engage each group of stakeholders in many ways to gain feedback on a wide range of topics, including sustainability-related topics. The chart below describes our current engagement with external and internal stakeholders.
Strategic Framework
The research conducted in our approach, our materiality assessment, and our ongoing stakeholder engagement provided the insights to create our strategic framework. This framework is intentionally designed to include our material topics and highlight Nextracker’s sustainability priorities.
Responsible Products and Supply Chain
Nextracker develops highly intelligent, reliable, and productive solar technology.
Product Design and Innovation
Supply Chain Management
GHG Emissions and Resource Efficiency
Nextracker evaluates and aims to improves our environmental impact for future generations.
Climate/GHG Emissions
Resource Efficiency
People and Culture
Nextracker fosters a culture of continuous growth and improvement.
Employee Health and Safety
Diversity, Equity, and Inclusion
Human Rights
Accountable Corporate Citizenship
Nextracker maintains controls designed to create a safe and responsible business environment.
Corporate Governance
Business Ethics
Cybersecurity
Looking Ahead
We aim to continuously advance transparency and accountability in our sustainability programs. We are actively exploring opportunities to improve, such as:
- Committing to the SBTi framework
- Working towards ISO: 14001 certifications for U.S. headquarters
- Evaluating affiliations and frameworks such as the Global Steel Climate Council (GSCC) to support decarbonization efforts
- Implementing an ESG data management tool
Contact Us
San Francisco Bay Area
6200 Paseo Padre Pkwy Fremont, CA USA
+1 (510) 270-2500
