Modern Slavery and Human Trafficking Statement

This statement is made pursuant to the UK Modern Slavery Act 2015 and California Transparency in Supply Chains Act of 2010 by Canadian Solar Inc. and its wholly owned subsidiaries.

Canadian Solar Inc. is one of the world's largest and foremost solar power companies. As a leading manufacturer of solar photovoltaic modules and provider of solar energy solutions, Canadian Solar Inc. also has a geographically diversified pipeline of utility-scale power projects in various stages of development. The company has two main lines of business namely: (i) the manufacturing and sale of solar systems components, including PV modules and inverters; (ii) the development, construction, operation and management and sale of solar PV projects, working with both build-to-sell and build to-hold business models. In 2015, sale of solar systems components has contributed to 69.1% of Canadian Solar Inc. total net revenue.

Being one of the major PV industry players in the world with cumulative solar panel delivery exceeding 24 GW, we have taken corporate responsibility to the heart of our daily business operations to strengthen environmental sustainability, human resource and community development.

With reference to the use of human resources, it is Canadian Solar Inc. Policy to respect the Laws of the Countries where it runs its business as provided in our Code of Business Conduct and therefore not to engage in the employment of either child or forced labor of any kind. Canadian Solar Inc. is committed to making a positive difference to all whose lives we touch; both child and forced labor run contrary to this commitment.

Our anti-slavery and human trafficking policy reflects our commitment to acting ethically and with integrity in all our business relationships and to implementing and enforcing effective systems and controls to ensure modern slavery is not taking place in any part of Canadian Solar Inc. business.

Currently, our purchasing strategy follows a vertically integrated procurement pattern, controlled at group level and supported by each division. The goal of our strategy is to establish a sustainable, efficient and healthy supply chain that meets the development needs of our company and the interests of all our stakeholders, among which we count the environment as key.

In accordance with our zero tolerance approach to modern slavery, forced labor and human trafficking, we will seek to ensure that future agreements, which are used for the manufacturing, construction, or the purchase and supply of goods and services, will allow us to terminate and cease dealing with any supplier in the event of any violations.

We pay close attention to our suppliers’ competitive strategies, the way they manage their employees, their social responsibility and sustainability programs. In addition, we co-operate with them on innovation and improvement in these and other areas wherever possible. We only deal with suppliers who meet the requirements of the applicable laws and regulations with regard to safety, environment, quality and cost, and if they certify and agree to these standards in a formally signed document as part of our purchasing process.

As part of our initiative to identify and mitigate risk, we have in place verification systems using internal resources for:

1. Supplier evaluation and selection;

2. Supplier Management;

3. Annual Audit of Suppliers.

We are in the process of putting new procedures in place to conduct reviews of our high risk suppliers. Such reviews will be conducted annually using internal resources and site reviews may include unannounced visits.

We are working to create new procedures, which will ensure our Code of Conduct and Business Ethics and Modern Slavery Policy will form part of the evaluation and selection criteria for goods and services purchased by Canadian Solar Inc..

Suppliers will be expected to commit to all areas of these policies and any serious breach may result in the termination of any business relationship. Where possible, we expect all relevant suppliers to have suitable anti-slavery and human trafficking process within their businesses in accordance with the requirements of the laws and regulations applicable to them.

We expect our directors, employees, and contractors to comply with our Code of Conduct and Business Ethics, Modern Slavery Policy, and all applicable laws. As part of this effort we are in the process of introducing specialized annual training for relevant directors, employees, and contractors managing our partners. Such training will be repeated and enhanced in the following years, based on our annual risk evaluation.

Best regards,

Canadian Solar Inc.

Dec. 18th, 2017