Action Guide for Green Supply Chain

Management of Photovoltaic Equipment

 Contents

Action Guide for Green Supply Chain Management of Photovoltaic Equipment ................... 1
I. Introduction of Green Supply Chain Theory ...........................................................................3
1. Basic concepts ..............................................................................................................3
2. Scope of application ..................................................................................................... 4
3. Working principles ....................................................................................................... 4
II. Research on LCA Carbon Emission Assessment and Carbon Efficiency Level Assessment
Methods of Photovoltaic Equipment ......................................................................................... 6
1. Analysis of photovoltaic equipment industry chain ......................................................... 6
2. Carbon footprint accounting of the whole life cycle of photovoltaic equipment ................ 7
(1) Determine accounting boundaries ......................................................................... 7
(2) Assessment index and functional unit ................................................................... 8
(3) Calculation method of carbon footprint of photovoltaic products ............................ 9
① Calculation of total carbon emissions of products.................................................................9
② Calculation of carbon emissions during raw material purchase process.....................................9
③ Calculation of carbon emissions in the production process...................................................11
④ Calculation of carbon emissions during transportation....................................................... 12
⑤ Calculation of carbon emissions during operation.............................................................. 12
⑥ Calculation of carbon emissions from the recycling process................................................. 13
⑦ Software support..........................................................................................................13
3. Accounting of carbon emission intensity throughout the life cycle of photovoltaic
equipment ......................................................................................................................14
(1) Calculation of carbon emission intensity index per unit product ............................14
(2) Calculation of carbon emission intensity index per megawatt hour ....................... 14
4. Evaluation index system for photovoltaic green supply chain management .................... 15
Composition of assessment index system for photovoltaic equipment suppliers .......... 15
5. Data quality requirements ........................................................................................... 16
Appendix 1: Assessment Index System of Green Supply Chain Management Companies ............17
I. Introduction of Green Supply Chain Theory
1. Basic concepts
Green Supply Chain. Green supply chain, also known as
environmentally conscious supply chain (ECSC) or environmental
supply chain (ESC), is a management mechanism that comprehensively
considers environmental hazards and resource efficiency modernization
throughout the entire supply chain. GB/T 33635-2017 defines green
supply chain as: The concept of environmental protection and resource
conservation runs through the entire process of the company from
product design to raw material purchase, production, transportation,
storage, sales, use and scrapping, so that the company's economic
activities are coordinated with environmental protection.
Green supply chain is based on green manufacturing theory and
supply chain management technology, and integrates the concepts of
green manufacturing, product life cycle management and extended
producer responsibility into company business processes, involving
suppliers, manufacturers, sellers and end users in the industrial chain.
Its purpose is to minimize the impact of the whole product life cycle on
the environment and maximize resource efficiency. Implementing
green supply chain management is an effective way to enhance the
competitiveness and realize the sustainable development of companies.
Life Cycle Assessment (LCA). It refers to the entire process of a
product (or service) from obtaining raw materials, production, use to
disposal, that is, from cradle to grave.
Regarding LCA, ISO14040 is defined as a method used to assess
environmental factors and potential impacts related to a certain product
(or service). It is carried out by compiling the stock records of related
inputs and outputs of a certain system, evaluating the potential
environmental impacts related to these inputs and outputs, and
interpreting the stock records and the analysis results of environmental
impacts according to the objectives of LCA research. GB/T 24040-2008
defines LCA as the compilation and assessment of the inputs, outputs
and their potential environmental impacts in the life cycle of a product
system.
Carbon Footprint. The concept of "carbon footprint" is derived from
"ecological footprint", which mainly uses carbon dioxide emission
equivalent (CO2 equivalent, abbreviated as CO2eq) to represent the total
greenhouse gas emissions emitted during human production and
consumption activities. Since many countries or organizations have
developed and issued carbon footprint accounting standards for different
system levels, there are currently many types of carbon footprint
standards.
Product carbon footprint refers to the total direct and indirect emissions
of CO2 and other greenhouse gases (expressed in the form of CO2 emission
equivalents) caused by a product during its life cycle. The accounting of
product carbon footprint usually uses LCA as an assessment tool to evaluate
and account for the whole life cycle process of products or services, that is,
the energy consumption and environmental impact from cradle to grave.
Carbon Efficiency Rating Assessment. Carbon efficiency rating
assessment is to compare the carbon emissions per unit of added value of
product in a certain cycle with the average carbon emissions per unit of
added value of the industry in the same period, and to obtain the carbon
efficiency value. According to the size of the carbon efficiency value, it is
divided into several levels, and "labels" are set according to different levels
to effectively evaluate the carbon efficiency level of the company or
product in the industry. The carbon efficiency value is the average carbon
emissions per unit of added value of company or product in a certain
cycle/the carbon emissions per unit of added value of the industry in the
same period.

2. Scope of application

This guide is applicable to the green and low-carbon quantitative

assessment of the entire life cycle process of photovoltaic equipment from
product design, material acquisition, purchase, production, transportation,
storage, packaging, application, recycling, and scrap treatment, as well as
the selection, cultivation, incentives, assessment and information
disclosure of photovoltaic equipment suppliers.

3. Working principles

Systematic layout. Grasp the new development trend, based on the

actual foundation of the province's new energy industry, strengthen
systematic deployment, implement it in stages, and build an industrial
chain policy system that adapts to the long-term development of the
region.
Technology leadership. Focus on key weak links in the green supply
chain, make breakthroughs, support key technology breakthroughs,
accelerate the deployment of green supply chain applications, and drive
the overall upgrade of the industrial chain.
 Open collaboration. Give full play to the guiding role of policies,
promote the integration of government, industry, academia, research and
application, support chain-leading companies to strengthen collaboration
with upstream and downstream companies, and promote the open sharing
of green supply chain technology and information. Improve the
development environment and build a good industrial ecology.
LCA perspective on lifecycle. Consider the entire lifecycle of a
product, from the acquisition of raw materials, production of energy and
materials, manufacturing and use of the product, to end-of-life processing
and final disposal. Through this systematic perspective, it is possible to
identify and potentially avoid the transfer of potential environmental loads
at various stages or stages of the entire lifecycle.
Focus on the environment. LCA focuses on environmental factors
and impacts in product systems, usually without considering economic and
social factors and their impacts. Other tools can be combined with LCA
for a broader evaluation.
Relative methods and functional units. LCA is a relative method
built around functional units. The functional unit defines the object of
study. All subsequent analyses, as well as the input-output and LCIA
results in LCl, correspond to the functional units.
Repeated methods. LCA is a repetitive technique. Each stage of
LCA uses the results of other stages. Applying this iterative approach in
each stage and between stages will ensure comprehensiveness and
consistency in research work and reported results.
Transparency. Due to the inherent complexity of LCA, transparency
is an important guiding principle in implementing LCA to ensure
appropriate interpretation of results.
Comprehensiveness. LCA considers all attributes or factors of
natural environment, human health, and resources. By considering all
attributes and factors in a study from a comprehensive perspective, it is
possible to identify and evaluate issues that require trade-offs.
The priority of scientific methods. Decisions in LCA are more
suitable to be based on natural sciences. If it is not possible, other scientific
methods (such as social and economic sciences) or reference to
international conventions can be applied. If there is no scientific basis, no
justification based on other scientific methods, and no international
conventions to follow, then the decisions made can be based on value
choices.
II. Research on LCA Carbon Emission Assessment
and Carbon Efficiency Level Assessment Methods of
Photovoltaic Equipment
1. Analysis of photovoltaic equipment industry chain

Photovoltaic power generation system is mainly composed of three

parts: solar panels (components), controllers and inverters. They are mainly
composed of electronic components and do not involve mechanical
components.

Figure 2-1 Outline diagram of photovoltaic power generation system

The photovoltaic equipment industry chain includes: high-purity

polysilicon, silicon rods/silicon ingots/silicon wafers, photovoltaic cells,
photovoltaic modules, photovoltaic power generation systems and other
links. Among them, the upstream is the production of high-purity
polysilicon, the midstream is polycrystalline ingot casting/monocrystalline
rod drawing, slicing, photovoltaic cell production, photovoltaic power
generation component packaging and other links, and the downstream
includes photovoltaic power generation systems such as centralized
photovoltaic power stations and distributed photovoltaic power stations.
Figure 2-2 Schematic diagram of photovoltaic equipment industry chain

2. Carbon footprint accounting of the whole life cycle of

photovoltaic equipment
(1) Determine accounting boundaries

According to the definition of ISO 14067, the quantification of product

carbon footprint (CFP) considers the entire lifecycle of a product, including
raw material procurement, design, production, transportation/delivery, use,
and end-of-life treatment.

Figure 2-3 Schematic diagram of life cycle accounting boundaries

According to the actual situation of photovoltaic power generation

equipments, this report sets the carbon emission accounting boundary as
follows:

① All equipments need to calculate the carbon emission intensity level

per unit product from cradle to gate.

Description: From cradle to gate, there are three stages: raw material
procurement, production, and transportation/delivery.
 ② The main equipments used in the terminal need to calculate the
carbon emission intensity level of unit power generation from cradle to grave.

Description: From cradle to grave includes five stages: raw material

procurement, production transportation/delivery, use, and end-of-life
treatment.

(2) Assessment index and functional unit

This standard comprehensively considers the specific characteristics

of each major power generation product. According to the accounting
boundary determined above, the functional units of each assessment index
are set as follows:
Table 2-1 Functional units of each assessment index

Functional
Category Equipment Assessment index
unit

Photovoltaic ①Carbon emission tCO2e/MW

power intensity per unit
generation (1) Photovoltaic product
products modules
②Carbon
emission intensity tCO2e/MWh
per unit of power
generation
Upstream products of
photovoltaic modules: ①Carbon emission
High purity silicon intensity per unit
material product

Single/polycrystalline tCO2e/t
silicon wafer

Mono/polycrystalline
cells
(2) Bracket ①Carbon emission tCO2e/t
intensity per unit scaffold
product
 (3) Inverter ①Carbon emission tCO2e/MW
intensity per unit
product
②Carbon
emission intensity tCO2e/MWh
per unit of power
generation

(3) Calculation method of carbon footprint of photovoltaic

products

For the purposes of this section, the following definitions will be used:
 Monitoring Value: The emission factor value obtained by the
enterprise manufacturer through actual measurement methods;
 Default Value: When monitoring values cannot be obtained,
publicly recognized data from both domestic and international
sources shall be used;
 AD refers to “usage amount”
 EF refers to “emission factor”

① Calculation of total carbon emissions of products

Calculate the total carbon emissions of products by quantifying all
significant greenhouse gas emissions throughout the product's life cycle or
selected processes.
E Cradle to Gate = E Raw Material Purchase + E Production + E Transportation
E Cradle to Grave = E Raw Material Purchase + E Production + E Transportation + E Use + E End of
Life Processing

② Calculation of carbon emissions during raw material purchase

process

Wherein:
 ADr——the usage of the r-th raw material/auxiliary material/upstream
non-end-use product. According to the specific statistics, the unit can be
tons (t), cubic meters (m3) or pieces, etc.;
EFr——the emission factor of the r-th raw material/upstream non-end-use
product according to specific statistics, the unit can be tCO2e/t, tCO2e/m3
or tCO2e/piece, etc.;
r——the type of raw materials entering the production boundary of the
product, and the type of upstream non-end-use products;

Table 2-2 Instructions for obtaining photovoltaic product usage and

emission factor data
Product name Raw material Amount Carbon emission factor
acquisition

High purity silicon Industrial Monitor value Default value

material silicon
Sodium Monitor value Default value
hydroxide
Single/polycrystalli High purity Monitor value Monitor value or default
ne silicon wafer silicon value
material

Single/polycrys Monitor value Monitor value or default

Mono/polycrystalli talline silicon value
ne cells wafer
Silver paste Monitor value Default value

Aluminum Monitor value Default value

paste
Mono/polycrys Monitor value Monitor value or default
talline cells value

Border Monitor value Default value

Glass Monitor value Default value

Backplane Monitor value Default value

Photovoltaic Encapsulation Monitor value Default value
modules material
Junction box Monitor value Default value

Welding ribbon Monitor value Default value

Inverter / Monitor value Monitor value or default

value
Support / Monitor value Monitor value or default
value
③ Calculation of carbon emissions in the production process
E production = AD production electricity × EF electricity + AD production heat × EF heat
where:
AD production electricity consumption——the net purchase of electricity
consumption of production products, in MWh;
EF electricity——CO2 emission factor of electricity supply in tCO2e/MWh;
AD production heat——net purchased heat consumption of production
products, in GJ (million kilojoules);
EF heat——carbon dioxide emission factor of heat supply in tCO2e/GJ;

Table 2-3 Instructions for data acquisition of electricity and heat usage
and emission factors

Carbon
Parameter
Source description Amount emission
name
factor
Only the annual power purchase from
the grid and the power supply from
fossil fuel captive power plants that
Production produce the corresponding products Monitor Default
electricity are counted, and waste heat power value value
generation and direct power supply
from renewable energy are not
counted.
 Only the annual purchased heat and
fossil fuel self-owned power plant
Production heating are counted for the production Monitor Default
heat of corresponding products, and waste value value
heat heating and renewable energy
heating are not counted.

④ Calculation of carbon emissions during transportation

E transportation = Σp (n) = 1 ADp (t) × EF transportation

Wherein:

ADp(t)——the transportation volume of the r-th product (product) in tons

kilometers (t km). Other units such as cubic meters, pieces, kW, etc.
should be converted to tons;

p——type of product;

EF Transportation-emission factor from the transportation process in tonnes of

carbon dioxide equivalent/(tonnes · kilometers) (tCO2e/(t·km));

Table 2-4 Explanation table for data acquisition of transportation

volume and emission factor

Parameter name Transportation Transportation Carbon emission

weight distance factor
Transportation Monitor value Monitor value Default value
volume

⑤ Calculation of carbon emissions during operation

E operation = (E raw material purchase + E production + E transportation) × r

replacement rate + AD oil × EF oil

where:
r Replacement rate——the average replacement rate of accessories, in%;

Table 2-5 Explanation Table for Obtaining Operating Volume and

Emission Factor Data
 Parameter name Transportation Oil quantity Carbon emission factor
weight
Operating Monitor value Monitor value Default value
volume

⑥ Calculation of carbon emissions from the recycling process

E Recovery Process = ADw (t) × EF Transportation + AD Recovery (t) × EF Recovery

Wherein:
ADw(t)——the transportation volume of end-of-life products and
building materials, in tons · kilometers (t·km), and other units such as cubic
meters, pieces, kW, etc. need to be converted to tons;
EF Transportation——emission factor from the transportation process in
tonnes of carbon dioxide equivalent/(tonnes · kilometers) (tCO2e/(t·km));
AD recycling (t)——the amount of recycling and reuse of end-of-life
products and building materials, in tons (t), and other units such as cubic
meters, pieces, kW, etc. need to be converted to tons;
EF recycling——the emission factor of recycling and reuse in tonnes of
carbon dioxide equivalent/(tonnes) (tCO2e/t);

Table 2-6 Explanation Table for Obtaining Consumption and Emission

Factor Data in the Recycling Process

Parameter name Amount Transportation Carbon emission

volume factor
Recycling and Monitor value Monitor value Default value
transportation
Recycling and Monitor value / Default value
reusing

⑦ Software support

This standard study is intended to be based on the support of Gabi software. Gabi
software is a professional software for LCA jointly developed by the LBP Institute of the
Universität Stuttgart and PE-INTERNATIONAL. It has been updated to Gabi version 9
and will be updated continuously. Companies can use GaBi for quantitative analysis of
LCA, and it also helps companies evaluate the grade of supply chain products with the
highest standards; Analyze the drivers of energy consumption, carbon footprint, waste
emissions, etc. of products. As the most trusted product sustainability solution for LCA,
GaBi has more than 10,000 users worldwide, including Fortune 500 companies, leading
industry associations and innovative small and medium-sized companies. Customers
involve many famous domestic universities such as Tsinghua University, Peking
University, Zhejiang University, Beijing University of Technology, Nankai University,
etc. There are also testing and consulting institutions such as German TiV, and
companies include well-known companies such as Baowu Group, Ningde Times, and
SAIC Motor. Some research institutions such as the China Institute of Standardization
are using GaBi.
Gabi has the characteristics of the world's largest data set content, flexible and
transparent graphical interface, etc. It provides methods, interpretation, disadvantage
analysis and sensitivity analysis for systematic assessment or distributed assessment
according to each project stage of LCA and life cycle engineering. It can be applied to
industry, research fields and environmental consulting fields, and can provide a strong
data quality foundation for the study of this assessment standard.

3. Accounting of carbon emission intensity throughout the

life cycle of photovoltaic equipment
Based on the carbon emission calculation methods for different stages of the entire
lifecycle mentioned above, the carbon emission intensity level of each product in the
photovoltaic power generation industry chain can be calculated from cradle to gate; For
terminal products in the photovoltaic industry chain, it is possible to calculate the carbon
emission intensity level of unit power generation from cradle to grave.

(1) Calculation of carbon emission intensity index per unit

product

S unit product strength, product p = E cradle to gate, product p/AD product p

S unit product strength, product p——CO2e emissions per unit product P in the photovoltaic
industry chain. According to the product type, the unit can be power (MW), mass (ton),
volume (m ³), or quantity.

E Cradle to gate, product p——the carbon emissions from cradle to gate in the lifecycle of
product p, measured in tCO2e;
AD product p——the output of product p. For photovoltaic modules, inverters and other
products, the unit should be MW. For other products, the unit can be determined
according to the specific characteristics of the product;

(2) Calculation of carbon emission intensity index per

megawatt hour

① Calculation of power generation during operation period

 The specific performance data of the power generation products to be used, as
well as the information of the renewable energy power plants to be put into operation,
including the total power generation during the operation period estimated in the
feasibility study report, the average total power generation level of local power stations
of the same type, etc., to estimate the total power generation during the operation period.
② Calculation method of electrical strength

S degree electrical strength, product p = E cradle to grave, product p/Wfd,p

S degree electrical strength, product p————The CO2e emitted per unit of electricity generated during
the entire lifecycle of product P is measured in MWh.

E Cradle to grave, product p——carbon emissions throughout the life cycle of the product, in
tCO2e;

wfd, p——the power generation of product p during the operation period, in MWh;

4. Evaluation index system for photovoltaic green supply

chain management
The Green Supply Chain Index aims to evaluate the sustainable development
performance of enterprises in the supply chain of solar power generation systems by
evaluating various aspects related to green management and low-carbon policies. The
purpose of green supply chain management is to play the main role of core enterprises in
the supply chain, on the one hand, to do a good job in energy conservation, emission
reduction and environmental protection, continuously expand effective supply to society,
and on the other hand, to lead and drive upstream and downstream enterprises in the
supply chain to continuously improve resource and energy utilization efficiency, improve
environmental performance, and achieve green development. Its management scope is
based on the requirements of the product life cycle, managing business processes such as
design, procurement, production, logistics, and recycling, which involves cooperation
between suppliers, manufacturing enterprises, logistics providers, distributors, end-users,
and recycling and dismantling enterprises.

The method for evaluating green supply chain management of photovoltaic

equipment is to construct a green supply chain management evaluation index system,
which mainly includes six aspects: green supply chain management strategic indicators,
green supplier management indicators, green production indicators, green recycling
indicators, green information platform construction indicators, and green information
disclosure indicators. The specific evaluation indicators and calculation methods are
disclosed in Appendix 1.

Composition of assessment index system for photovoltaic

equipment suppliers

① Company green supply chain management strategy and system

 Incorporate the concept of green supply chain management into the development
strategic planning, clarify the goals of green supply chain management, establish
management departments, and promote the green supply chain management work
of the enterprise.

② Company green purchase and green supplier management

Establish the concept of green procurement, continuously improve and perfect

procurement standards and systems, and integrate green procurement throughout
the entire process of raw material, product, and service procurement.

③ Green production

Establish a green design concept based on the entire product lifecycle, integrate
environmental data resources, establish a basic process and product database, build
an evaluation model, and conduct a full lifecycle (LCA) evaluation during the
research and development design phase.

④ Green recycling and reuse

Establish an extended producer responsibility system and proactively assume

responsibility for the recycling and resource utilization of discarded products.

⑤ Green information platform construction and information disclosure

Establish an online monitoring system for energy consumption and an emission

reduction monitoring database.

⑥ Green information disclosure

Regularly release corporate social responsibility reports, disclosing information on

the completion of energy conservation and emission reduction targets, pollutant
emissions, violations, and other related matters.

5. Data quality requirements

Data quality control is carried out by adopting the actual data of the company
(primary data) or selecting a more representative database (secondary data) until the
specified data quality requirements are met. The requirements of this guideline for data
quality control are as follows:
(1) Production process data shall be reviewed by designated institutions;
(2) Production process data should give priority to primary data, and secondary
data (including activity level data and emission factors) should not use more than 50%
of carbon emissions;
 (3) Analyze the contribution of various material consumption and energy
consumption to the whole life cycle of the product. If the contribution rate exceeds 10%,
the material balance and energy balance should be made, and the material consumption
and energy consumption should be measured according to the national standard. If
conditions are not met, you can select supplier data > data from the same raw material or
fuel from the same origin > average data from the same raw material or fuel from the
same origin > regional average data from similar regions with the same main energy
consumption types of raw materials with the same action > China average data and
world average data;
(4) Quality requirements for database data: The quality of data covering 70% of
carbon emissions should come from the average data of regions with the same raw
materials or main energy consumption types in similar regions that are not lower than
those from similar regions.

Appendix 1: Assessment Index System of Green

Supply Chain Management Companies

( 20 year)

Primary No. Secondary indexes Unit Highest Index type

indexes score
Green supply 1 Incorporated into the 8 Qualitative
chain development plan X11 -
management
Setting green supply chain
strategy X1 2 6 Qualitative
management objectives X12
-

3 Set up a special management 6 Qualitative

agency X13 -

4 Improvement of green purchase 4 Qualitative

standard system X21 -

Implementing 5 Improved supplier certification 3 Qualitative

system X22 -
green supplier
management Periodic audits of suppliers X23 Qualitative
6 3
X2 -
Improved supplier performance
7 3 Qualitative
assessment system X24
-

8 Training suppliers on a regular 3 Qualitative

basis X25 -

9 Proportion of low-risk suppliers % 4 Quantitative

X26

Green 10 Energy saving, emission 10 Qualitative

reduction and environmental -
production
protection compliance X31
X3
Comply with the
11 10 Qualitative
administrative measures for -
restricted use of hazardous
substances X32
12 Product recovery X41 % 5 Quantitative

13 Packaging recovery X42 % 5 Quantitative

Green
recycling X4 Complete recycling system
14 5 Qualitative
(including self-built and joint -
recycling with third parties)
X43
 15 Guide downstream companies 5 Qualitative
-
to recycle and dismantle X44
Green Improvement of green supply
16 10 Qualitative
information chain management -
platform information platform X51
construction
X5

Disclosure of corporate
17 2.5 Qualitative
energy conservation, -
emission reduction and
carbon reduction information
Green X61
information Disclosure of the audit rate of
disclosure X6 18 2.5 Qualitative
high and medium-risk
suppliers and the proportion -
of low-risk suppliers X62
Disclosure of supplier energy
19 2.5 Qualitative
conservation and emission
reduction information X63 -

Release of corporate social

20 2.5 Qualitative
responsibility report
(including green purchase -
information) X64
Note: To facilitate the assessment of green supply chain management,
the green supply chain management index formula in the "Green Supply
Chain Management Assessment Requirements" (Announcement 3 of the
General Office of the Ministry of Industry and Information Technology
on the Development of Green Manufacturing System, Ministry of
Industry and Information Technology [2016] No. 586) is simplified. The
specific calculation formula is simplified to:
GSCI=X11 + X12 + X13 + X21 + X22 + X23 + X24 + X25 + X26 + X31 + X32 + X41+
X42 +X43 +X44 +X51 +X61 +X62 +X63+X64