AEM's commitment to sustainability

Material Topic

FY2023 Performance

Perpetual Targets

Sustainable Growth

Corporate Governance and Anti-Corruption

Zero significant instances of noncompliance with governmental laws and regulations in environmental, social, and economic areas

•To have zero substantiated cases of corruption or other improprieties

•To maintain our overall compliance record and have zero significant public legal cases brought against the Group

Economic Performance – Economic Value Generated and Distributed (S$’000)

Published quarterly business updates and half-yearly results release on SGXNet in a timely manner

Investments in critical R&D areas continued, including active thermal control, resulting in further expansion of the Group’s patent portfolio with a total of 9 new patents awarded in 2023

• To provide innovative solutions and product improvements to better serve our customers

•To continue cost reduction engineering initiatives and “lean” operations to drive productivity improvements

•To incentivise employees to develop innovative ideas that can be patented

•To increase economic value generation for our shareholders

Environmental Conscientiousness

Supplier Environmental Assessment, Supplier Social Assessment

All key suppliers participated in AEM Sustainability declarations to provide update with regards to their continuous alignment with AEM’s environmental and social requirements, having either aligned their business practices with industry standards such as the ISO14001 or published their environmental policy or sustainability report in the public domain

All key suppliers participated in AEM PFAS/PIP noncompliance declarations to provide updates and proposed replacement materials aligned to respective AEM customers’ requests

• Screen 100% of new key suppliers using environmental and social criteria

•Enhance our supply chain management assessment processes to strengthen our evaluation of suppliers’ environmental and social practices

•Screen 100% of applicable AEM suppliers using the yearly supplier declaration. This is critical to drive research and replacement to enable greener and more sustainable alternatives across the supply base

Energy and Emissions

Reduced Scope 1 direct GHG emissions and lower energy consumption resulted in lower Scope 2 indirect GHG emissions

• Pursue energy reduction measures in our business activities by increasing energy efficiency and minimising wastage

•Promote heightened conservation awareness and usage discipline amongst our employees

•Track and document energy consumption and all relevant Scopes 1 and 2 greenhouse gas emissions at the facility and/or corporate level

Waste Management

A 14% decrease in the total amount of waste production activities in FY2023 as compared to FY2022

• To further reduce the use of paper documentation and consumption

•Refine measurement and reporting methods to manage other significant waste-related impacts from our manufacturing processes (e.g., chemical waste, used coolant, etc.)

Water Management

Overall water consumption increase in FY2023 due to moving our production to a newer, larger facility in Penang, Malaysia

• To continue promoting water conservation awareness among our employees

•To take measures to reduce water consumption, e.g., by using reclaimed water, motion sensor taps, and spring faucets

Solidifying Relationships with Our Stakeholders

Employment

Continued strict adherence to labour standards that cover the free choice of employment, the prevention of child labour, nondiscrimination, and freedom of association, in accordance with applicable local laws

• Ensure accessibility to a variety of resources and tools to implement fair and progressive employment practices within AEM

•To attract and retain talent with competitive remuneration and welfare packages

Occupational Health and Safety

Zero cases of recordable work-related ill health, high-consequence workrelated injuries, and fatalities resulting from work-related injuries or ill health

• Ensure that our practices at AEM are in line with internationally agreed best practices for OH&S management systems, for the prevention of harm and promotion of health at work

•Complete external/ MOM audits on AEM’s OH&S management system, to certify AEM’s safety manual and procedures

•Establish a comprehensive occupational accident/ work injury compensation insurance plan for our employees

Training and Education

Increased average training hours per employee to 35.2 hours

100% of employees underwent annual performance appraisal

• Maintain our commitment to training and skills upgrading for all employees

•Empower employees to meet their personal and professional development goals

•To achieve 100% of employees receiving regular performance and career development reviews

Diversity and Equal Opportunities

Zero reported instances of discrimination in the workplace

Maintained a relatively balanced gender diversity ratio of AEM’s workforce for FY2023

• Ensure equal opportunities and career progression are made available and accessible to all employees regardless of gender, race, or age

•Encourage greater diversity in our workforce and achieve a fair representation of various diversity categories within AEM’s governing body and senior management team

Market Presence and Contribution

Zero significant instances of noncompliance with all applicable labour laws

• Continue to adhere to minimum wage laws in countries we operate in

•Maintain significant majority of senior management hired from local communities

Local Communities

AEM significantly contributed to local communities through a series of health, education, safety, and well-being initiatives across various AEM sites, fostering community engagement and social responsibility

• To partner with charity organisations in improving the local communities’ welfare

•Pursue other means of giving back to our community, in addition to cash donations and sponsorships

Customer Health and Safety

Zero significant incidents of noncompliance with regulations and/ or voluntary codes concerning the health and safety impacts of our products and services

• Deliver quality products and services that fulfil statutory and regulatory requirements and satisfy customers’ needs

Customer Privacy

ero substantiated complaints concerning breaches of customer privacy and loss of customer data

• Maintain zero substantiated complaints and sustain our efforts to safeguard customer privacy