In recent years, the concept of ESG (Environmental, Social, and Governance) has shifted from being an abstract term to becoming a decisive factor in business decision-making, particularly in sectors related to sustainability and renewable energy. The growing pressure from regulators, investors, and consumers is compelling companies to demonstrate a genuine commitment to responsible practices that positively impact the planet and society.

For the solar industry, at the epicenter of the global energy transition, ESG is not only an ethical imperative but also a competitive advantage. This sector, which is key to achieving emission reduction targets, is now being evaluated not just on the efficiency of its technologies but also on the transparency and traceability of its environmental and social impact across the entire supply chain.

An industry perspective

To gain deeper insight into how ESG standards are transforming the solar sector, Review Energy spoke with Mansha Marwah, Head of Sustainability at GCL, one of the world’s largest vertically integrated solar supply chain manufacturers.

Marwah explains that while the term ESG has gained popularity in recent years, its real-world application is being driven mainly by European regulations such as the Corporate Sustainability Reporting Directive (CSRD), the ban on forced labor, and the Corporate Sustainability Due Diligence Directive (CSDDD). "Buyers are under pressure to meet sustainability goals, and banks and institutional investors are demanding clear and verifiable data. ESG is no longer just a moral requirement, it’s a critical factor for accessing contracts and financing," she says.

GCL has responded to this trend by developing a pioneering platform for real-time traceable carbon data, unveiled in June 2024 at Intersolar Europe. This tool uses blockchain technology to ensure the accuracy, transparency, and security of carbon data, covering every step from silicon production to the final assembly of the solar module.

"Traceability cannot be superficial. We need to know exactly which supplier each component comes from, what its carbon footprint is, and how it’s measured throughout the supply chain," says Marwah. "Even if we’re talking about renewable energy, customers want the entire process to be truly sustainable—not just the end product."

To meet these expectations, GCL has invested heavily in digital traceability tools and low-carbon manufacturing, allowing the company to stay ahead of regulation while also standing out from competitors. "We can show clients the entire value chain, with audited, real-time data—from the module all the way down to metallurgical silicon. That’s not something many others can offer."

Marwah also stresses that achieving accurate traceability in such complex global supply chains requires standardized processes and rigorous verification. "We’ve embedded carbon accounting directly into our production workflows, and each facility follows a consistent methodology for measuring and reporting environmental impact," she explains.

This approach aligns with international standards like the GHG Protocol and ISO 14067, ensuring that the data is reliable, standardized, and easily interpreted globally. But according to Marwah, the second layer is just as crucial: external verification. "We work with independent third-party organizations to audit and validate our emissions reporting. This ensures transparency and also saves time and cost for buyers, who no longer need to conduct their own factory audits."

"Today, many clients request to verify factories themselves," she adds. "But when we tell them we already have certified external verification in place, that concern disappears. Trust becomes a direct competitive advantage."

What will manufacturers set apart in 2025?

Although regulatory developments continue to face pauses and uncertainties, Marwah anticipates that the future of ESG in the solar industry will involve greater standardization and competition based on transparency. "I foresee more regulations becoming enshrined in law, making ESG adoption mandatory for all. At the same time, innovation and differentiation will be key to standing out in an increasingly saturated market," she states.

For companies like GCL, which have spent years investing in low-carbon manufacturing and traceability tools, this transition presents a unique opportunity to solidify leadership and build trust in a sector critical to global decarbonization efforts.