Fair Pay & Worker Respect

Nextracker reported a CEO to median employee pay ratio of 332:1 for 2024.

Approximately 15% of the workforce, specifically employees in Spain and Brazil, are covered by local collective bargaining agreements. The company's Total Recordable Incident Rate (TRIR) for Fiscal Year 2025 was 0.61. Full health benefits are offered to employees. In CY24, 91% of employees completed health and safety training. Nextracker achieved ISO 45001 certification in the U.S., Australia, and Brazil, and expanded its scope to include Brazil operations in 2024.

Fair Trade & Ethical Sourcing

Nextracker has not reported any substantiated forced or child labor incidents in the last three years, and conducts proactive risk assessments and audits to prevent such practices.

The company has mapped its supply chain down to the tenth tier and requests full supply chain transparency from all suppliers. For identified deficiencies, suppliers must correct and improve within 90 days of an audit. The vast majority of supplier contracts include language requiring compliance with labor practices and applicable laws, and suppliers must sign a Responsible Procurement Principles (RPP) Acknowledgment Form. Nextracker's assessment indicated potentially high-risk areas of modern slavery within several industries, including electrical equipment, metal, and other basic materials supply, with key suppliers in China, India, Mexico, Saudi Arabia, Thailand, and Portugal identified as higher risk. The company invests in under-resourced and minority communities, but no specific percentage of procurement budget directed to diverse suppliers is provided.

Honest & Fair Business

Nextracker Inc.'s Code of Business Conduct and Ethics mandates compliance with anti-bribery and anti-corruption laws, including the FCPA, and anti-money laundering policies.

It also requires compliance with applicable laws, rules, and regulations, and cooperation with government requests and investigations. However, the company is facing a securities class action lawsuit alleging that it issued materially false and/or misleading statements and failed to disclose information regarding project delays, impacting its business and financial results. The complaint specifically alleges that the impact of project delays was more severe than represented, and that permitting and interconnection delays impaired revenue conversion. The class period for this lawsuit is from February 1, 2024, to August 1, 2024.

No War, No Weapons

Nextracker's core business is solar tracker solutions, with no evidence of revenue from arms or defense contracts, or any defense-related business activities. The company states it is aligned with the UN Guiding Principles on Business and Human Rights, and its Chief Ethics & Compliance Officer oversees implementation, which maps to UNGP referenced in policy and ethics office monitoring adherence.

Nextracker has a Responsible Minerals Policy, adopted November 19, 2024, and updated in FY25 to include cobalt in addition to tin, tungsten, tantalum, and gold. The company conducts supply chain due diligence for these conflict minerals, requiring suppliers to provide annual RMI Conflict Minerals Reporting Templates and other information to demonstrate sourcing does not benefit armed groups. This covers 60% of materials verified conflict-free. Personnel are required to complete annual NXT Code training, which includes human rights. The company's Code of Business Conduct and Ethics embodies its commitment to human rights, but specific ethical 'red lines' regarding weapons categories are not detailed.

Planet-Friendly Business

Nextracker reported total Scope 1, 2, and 3 greenhouse gas emissions for CY23 as 1.868 million tCO₂e, with Scope 1 and 2 emissions assured by a third party.

The company has committed to setting future sustainability targets aligned with the Science Based Targets initiative (SBTi), but validation is pending. In CY23, Nextracker diverted 79,618 lbs of waste from disposal out of a total of 166,138 lbs generated, resulting in a diversion rate of approximately 47.9%. No significant environmental compliance violations were reported in FY24. Nextracker has completed a climate risk assessment and has aligned with the Task Force on Climate-related Financial Disclosures (TCFD) recommendations, with initial gap analysis complete.

Respect for Cultures & Communities

Nextracker has established four formal partnerships with indigenous or local community groups, including the Coordinator of Indigenous Peoples of Manaus and Surrounding Areas (COPIME), the Association of Indigenous Communities of Terra Preta (ACINCTP), United Way of Hyderabad, and the City of Fremont.

The company invested $25,000 in the Kurasí Tury project, $45,000 in a Rural Forestry Project, and $25,000 for Los Angeles wildfire relief, totaling $95,000 in community development. Against an FY25 revenue of $2.96 billion, this represents approximately 0.0032% of revenue reinvested in local community development. No cultural appropriation incidents have been reported. Nextracker's NX Horizon-XTR technology was used at Melbourne Water’s Winneke Solar Farm to avoid grading due to the site's cultural heritage, demonstrating active protection measures for cultural sites. The company provides grievance mechanisms through multiple channels, including a 24/7 Ethics Hotline with translation services, covering 100% of operational sites. The Kurasí Tury project involved the participation of indigenous organizations, and six workshops were conducted on-site to foster community engagement. The project also supported the Arú Waimi Indigenous Municipal School. All employees complete inclusivity training during onboarding and an annual refresher. The Ethics Hotline offers translation services, and Solar Energy International (SEI) offers curriculum in Spanish and English.

Zero Waste & Sustainable Products

Nextracker has achieved ISO 14001 Environmental Management System certification in Brazil, indicating compliant hazardous waste handling.

The company has not reported any waste disposal violations in the past three years. Nextracker has company-wide waste reduction targets with timelines. For its NX Horizon™ low carbon solution, the company applies circular design principles, including circular steelmaking and optimized logistics, and uses Electric Arc Furnace (EAF) manufacturing with recycled steel and reduced aluminum content as waste reduction initiatives. Nextracker also has a responsible procurement program, established in 2021, which encourages supply chain sustainability and implies waste requirements for suppliers.