Nextpower, a leading global provider of intelligent power generation technology and solutions for solar power plants, has reached an important milestone in its sustainability journey after receiving validation for its near-term climate targets from the Science Based Targets initiative (SBTi).

The validation confirms that the company’s emissions reduction targets are aligned with internationally recognised climate science and the goals of the Paris Agreement, reinforcing Nextpower’s commitment to reducing its environmental footprint across both its operations and global supply chain.

The Science Based Targets initiative is one of the world’s most influential climate accountability frameworks for businesses. It is jointly run by four major global organisations: CDP (formerly the Carbon Disclosure Project), the United Nations Global Compact, the World Resources Institute (WRI), and the World Wide Fund for Nature (WWF).

Through this coalition, companies commit to measurable emissions reduction targets designed to keep global warming within internationally agreed limits.

For Nextpower, the validation represents more than a regulatory milestone. It signals the company’s ambition to position itself as a sustainability leader in the rapidly expanding solar energy technology sector, where environmental performance is increasingly becoming a competitive differentiator.

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What the New Climate Targets Mean

Under the newly validated targets, Nextpower has committed to a significant reduction in greenhouse gas emissions over the next decade.

The company will:

• Reduce absolute Scope 1 and Scope 2 emissions by 58.8% by fiscal year 2035, compared to a FY2025 baseline.
• Reduce Scope 3 emissions intensity per megawatt of solar trackers deployed by 63.8% over the same period.

These targets cover emissions generated directly by company operations as well as those produced throughout the broader value chain.

Scope 1 emissions refer to greenhouse gases produced directly by company-owned operations, such as manufacturing facilities or company vehicles.

Scope 2 emissions include indirect emissions generated through the consumption of electricity used by the company.

Scope 3 emissions represent the largest and often most complex category. They include emissions generated across supply chains, logistics networks, material sourcing and the use of products after deployment.

For companies involved in renewable energy technologies, Scope 3 emissions are particularly important because much of the carbon footprint is embedded in the manufacturing of materials such as steel, electronics and mechanical components.

By targeting reductions in Scope 3 emissions intensity tied to its solar tracker deployments, Nextpower is committing to improve the carbon efficiency of the technology used in solar power plants worldwide.

CEO Highlights Innovation and Supply Chain Improvements

Nextpower’s leadership says the SBTi validation reflects several years of operational changes and product innovation aimed at reducing the company’s environmental impact.

Dan Shugar, founder and CEO of Nextpower, said the company has been actively working to reduce emissions through a combination of manufacturing improvements, supply chain optimisation and product innovation.

“Over the past several years, we have strengthened our global supply chains, expanded domestic manufacturing in key markets, and launched new product innovations such as the NX Horizon® low-carbon tracker,” Shugar said.

“These actions are delivering carbon improvements while creating additional value for our customers. The SBTi validation is another important milestone for our company and reinforces our strategy and the progress we are making.”

The company has increasingly focused on regionalising its manufacturing and sourcing strategies, a move designed to reduce transportation emissions while improving supply chain resilience.

This shift has also allowed the company to expand domestic production capacity in key markets, particularly as governments around the world encourage the development of local clean energy supply chains.

Lower-Carbon Materials Play a Key Role

One of the most important elements of Nextpower’s decarbonisation strategy has been its transition toward lower-carbon industrial materials.

In recent years, the company has increased the use of electric arc furnace (EAF) steel in its solar tracking systems.

Unlike traditional steel production, which relies heavily on coal-fired blast furnaces, EAF steel is produced using recycled scrap metal and electricity, significantly reducing carbon emissions associated with manufacturing.

The adoption of EAF steel has allowed Nextpower to reduce the carbon footprint of its products while maintaining structural durability and performance.

Such material innovations are becoming increasingly important across renewable energy industries, where companies are under pressure to ensure that clean energy technologies are manufactured using sustainable methods.

NX Horizon Low-Carbon Tracker Technology

Central to Nextpower’s climate strategy is the development of the NX Horizon® low-carbon tracker, a solar tracking system designed to improve energy efficiency while reducing the environmental impact of solar infrastructure.

Solar trackers are mechanical systems that adjust the position of solar panels throughout the day to follow the movement of the sun.

By optimizing the angle of solar panels, trackers can significantly increase electricity generation compared to fixed solar arrays.

Nextpower’s NX Horizon tracker incorporates several design improvements aimed at reducing the embedded carbon footprint of solar power plant infrastructure.

According to the company, the technology can reduce embodied carbon emissions by up to 42% compared with traditional solar tracker systems.

This reduction is supported by third-party verified lifecycle assessments, which evaluate the environmental impact of products across their entire lifespan, from raw material extraction through manufacturing, deployment and operation.

The combination of improved energy performance and lower manufacturing emissions allows solar developers to reduce both operational and lifecycle carbon footprints.

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ESG Program Expansion Strengthens Corporate Strategy

The SBTi validation also reflects the broader expansion of Nextpower’s environmental, social and governance (ESG) strategy.

The company formally established its ESG programme in 2024, introducing a structured framework for sustainability reporting, emissions management and governance oversight.

Since then, Nextpower has integrated ESG considerations into multiple aspects of its operations, including:

• supply chain management
• manufacturing processes
• product design
• corporate governance
• stakeholder reporting

This approach reflects a wider shift across global industries, where ESG performance is becoming a core component of corporate strategy rather than a separate sustainability initiative.

Investors, customers and regulators are increasingly demanding measurable environmental commitments and transparent reporting on progress toward climate goals.

For companies operating in the renewable energy sector, demonstrating strong ESG performance is particularly important as the industry seeks to maintain credibility as a driver of global decarbonisation.

Recognition from ISS ESG Ratings

Further strengthening its ESG credentials, Nextpower recently received an upgrade to “Prime” status in the ISS Corporate ESG rating during the third quarter of fiscal year 2026.

ISS ESG is one of the world’s leading providers of sustainability ratings and research used by institutional investors.

Achieving Prime status places the company among the top performers within its industry in terms of environmental and governance performance.

Such ratings are increasingly important as large institutional investors incorporate ESG performance into investment decisions and portfolio allocation strategies.

For publicly traded companies like Nextpower, strong ESG ratings can improve investor confidence while helping attract long-term capital.

Solar Industry Faces Growing Pressure to Reduce Supply Chain Emissions

While solar energy is widely regarded as one of the cleanest forms of electricity generation, the industry is increasingly being scrutinised for emissions associated with manufacturing and supply chains.

Producing solar panels, steel mounting structures and electronic components requires significant industrial activity, often powered by fossil fuels.

As global demand for renewable energy continues to grow, companies across the solar value chain are under pressure to ensure that production processes themselves become more sustainable.

This has led to increased interest in low-carbon materials, regional manufacturing hubs and circular supply chains.

Companies like Nextpower are therefore investing heavily in technologies and supply chain strategies designed to reduce the carbon intensity of solar infrastructure.

ESG Performance Becoming a Market Differentiator

The validation of Nextpower’s climate targets also highlights how ESG performance is becoming a competitive factor in global clean energy markets.

Large energy developers, utilities and infrastructure investors increasingly evaluate technology suppliers not only on cost and performance but also on sustainability metrics.

Solar developers building large utility-scale projects are under pressure to demonstrate that their projects meet environmental standards across the entire lifecycle of the infrastructure.

As a result, equipment manufacturers that can demonstrate lower embodied carbon in their products may gain a competitive advantage.

Nextpower’s efforts to reduce the carbon footprint of its solar trackers therefore position the company to compete more effectively in markets where sustainability considerations influence procurement decisions.

Outlook:

As the global transition toward renewable energy accelerates, companies operating within the clean energy supply chain face increasing expectations to align their operations with climate science.

Investors, governments and customers are demanding greater transparency around emissions, sustainability strategies and supply chain impacts.

For solar technology providers, this means focusing not only on expanding renewable energy generation but also on ensuring that the technologies used to build that infrastructure are produced sustainably.

Nextpower’s SBTi validation represents an important step in that direction.

By committing to ambitious emissions reductions across both operations and supply chains, the company is aligning itself with the broader transformation taking place across the global energy sector.

In the coming years, companies that successfully integrate climate science into their business strategies will likely be better positioned to attract investment, win large infrastructure contracts and build long-term partnerships with energy developers.

For Nextpower, the validation of its science-based targets signals that sustainability is no longer just a corporate responsibility initiative—it has become a core component of the company’s long-term growth strategy in the global clean energy economy.

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By: Rosemary Wambui

11th March 2026