Urging Deeper ESG Accountability in Solar
Marcello Passaro, the Founder & Managing Consultant of Sunzest Solar, and ESG Bankability and Reliability Contributor at the European Technology and Innovation Platform Photovoltaics (ETIP PV), urged the solar industry to move beyond compliance checklists and focus on deeper ESG practices.
The EU is an important market for the global solar industry as it sources its products mostly from abroad, and usually without import limitations, unlike the US or India, but ESG is much higher on the agenda there. Referring to the various existing and upcoming regulations within the EU for ESG, sustainability, and circular economy, Passaro stressed the need for the solar industry to become aware of the new reality. Under the EU Green Deal, sustainability is a legal requirement in finance and operations, and companies are liable for all impacts across the entire supply chain. However, the situation is becoming somewhat blurrier as there are efforts to water down the rather stringent major ESG directives.
He noted that PFAS restrictions, cybersecurity oversight, and the EU’s forced-labor laws are reshaping ESG priorities and driving greater accountability across the solar sector.
Passaro called for the need to tie ESG with bankability across all levels – financial, social, technical, and support. He shared some learnings from several PV System ESG Audits that he recommended for companies to enhance their ESG profile, while emphasizing stronger ESG accountability for those operating in the domain.
Beyond permits, he urged independent biodiversity monitoring and site management. Components should be reused before recycling, with clear decommissioning plans and full system-level carbon impact reporting. He also stressed auditing subcontractor labor, ensuring community engagement, and enforcing safety standards.
