MSCI ESG Ratings aim to measure a company’s resilience to long-term, financially relevant ESG risks.

In 2022, AEM Holdings Ltd. received a rating of BBB (on a scale of AAA-CCC) in the MSCI ESG Ratings assessment. Learn more about MSCI ESG ratings here.

Our Board of Directors (“the Board”) determines the overall direction for the Company’s sustainability strategies. The Audit and Risk Management Committee (“ARC”) under the stewardship of the Board evaluates and incorporates sustainability issues as part of the Group’s strategic formulation, and to approve, manage, and monitor ESG factors material to the business.

To drive organisation-wide sustainability initiatives, we have established a Sustainability Team (“the Team”) consisting of employees from various departments with a diversity of experience and background. The Team is responsible for implementing and formalising sustainability policies and procedures, management processes, and sustainability development standards. It also supports and provides adequate resources to various functional units to perform the established sustainability processes and practices.

The Team works closely with AEM’s Sustainability Steering Committee (“SSC”), comprised of our senior management team. The SSC, set up to support the Company’s efforts in driving sustainability-related efforts, is responsible for implementing AEM’s sustainability objectives and strategy, managing and monitoring overall sustainability performance, and ensuring the Board is regularly updated on AEM’s sustainability progress. With the support of the Team, the SSC helps the ARC and the Board determine the Company’s material economic, environmental, and social aspects and set quantitative and qualitative targets for the forthcoming year.

In FY2021, COVID-19 regulations and restrictions have made traditional in-person meetings difficult. However, AEM is committed to understanding and safeguarding our stakeholders’ interests. We continue to engage all our stakeholder groups by updating AEM developments and receiving feedback on digital platforms such as LinkedIn and our Corporate Website.

We identify our stakeholders as groups that 1) impact our business, 2) impacted by our business, and 3) provide expertise in material factors such as external organisations. Our stakeholders’ feedback helps us determine our material topics and identify our focus areas. AEM is committed to listening to our stakeholders, and we welcome their concerns and expectations via our webpage: https://www.aem.com.sg/contact

Our sustainability strategy focuses on the three key pillars:
Key pillarFY2021 AchievementsPerpetual Targets
Sustainable Growth
Corporate Governance & Anti-Corruption
  • Provided timely quarterly business updates and half-yearly results releases
  • Frequent updates on financial guidance
  • Regular Board and Board committee meetings as well as frequent engagements with management
  • Zero (0) substantiated cases of corruption or legal compliance issue
  • Zero (0) substantiated case of corruption or legal compliance issue
Economic Performance – Economic Value Generated and Distributed (S$’000)
  • FY 2019*: 54,778
  • FY 2020*: 86,207
  • FY 2021: 89,181
  • *Prior years’ comparatives have been restated to be consistent with the current year’s basis of computation.
  • Continue to provide innovative solutions and product improvement to serve our customers better
  • Continue cost reduction engineering initiatives and “lean” operations to drive productivity improvements
  • Continue to encourage and incentivise employees to initiate and develop innovative ideas that can be patented
  • Continue to increase economic value generation
Solidifying Relationships with Our Stakeholders
Employment
  • The total number of employees increased by 132%
  • The proportion of new female hires increased by 10%
  • AEM reviewed and enhanced employee benefits
  • Achieve a low turnover rate of below 2.2% per month and continue to ensure accessibility to a variety of resources and tools to implement fair and progressive employment practices within AEM
  • Enhance AEM’s compensation and benefits package for all staff, including pro-family leave benefits to cater for the diverse needs of parental care and paternity child-care
Occupational Health and Safety (OHS)
  • AEM started tracking hazards that could potentially cause injury or ill-health
  • Reported zero (0) incident of work-related injuries and work-related ill health for all employees and workers
  • Plans in place to introduce an Employee Assistance Programme that comes with proactive recreational and health-promoting activities as well as life coaching to individuals
  • Ensure that our practices at AEM are in line with internationally agreed best practices and reflect recent developments in OHS management systems, prevention of harm, and promotion of health at work
  • External/MOM audit on AEM’s OHS 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
  • AEM launched the Learning Management System (“LMS”) to encourage employees to take ownership of their professional development
  • Achieved an average of 18.4 training hours through our physical and virtual training programmes for each employee
  • Achieved 100% of employees receiving regular performance and career development reviews
  • Awarded two (2) Continuing Education Sponsorships to a Senior Technician from Manufacturing and an Engineer from Software
  • Ensure that our approach to training and upgrading employee skills remains relevant and substantial for our staff; to empower our employees in meeting their performance development goals
  • Maintain 100% of employees receiving regular performance and career development reviews
Diversity and Equal OpportunityIncreased gender and age diversity on the Board
  • Continue to encourage diversity in our workforce and ensure equal opportunities and career progression are made available and accessible to all employees regardless of gender, race, and age groups
  • Ensure composition of governing body at AEM is a fair representation of various employee categories
Market Presence and Contribution
  • Adhered to minimum wage laws in countries we operate in
  • Provided employees with competitive remuneration packages and welfare
  • >90% of our senior management across the AEM group are hired from local communities
  • Continue to adhere to minimum wage laws in countries we operate in
  • Continue to provide employees with competitive remuneration packages and welfare to attract and retain talents and staff
  • Maintain >90% of senior management hired from local communities
Socioeconomic ComplianceNo instances of non-compliance with governmental laws and regulationsContinue to maintain our overall compliance record, as well as compliance with specific laws or regulations in the social and economic area
Local Communities
  • AEM Malaysia (AMM) partnered with three (3) charity organisations and sponsored daily essential items to communities needing social assistance
  • Raised funds at a cycling fundraiser to assist underprivileged patients in getting treatment for joint pain, stiffness, and arthritis
  • Continue to engage with the local communities and develop collaborative efforts to partner with charity organisations in improving our community’s welfare
  • Pursue other means of giving back to our community, in addition to cash donations and sponsorships
Customer Health and SafetyZero (0) incident of non-compliance with regulation and/or voluntary codes concerning the health and safety impacts of our products and servicesMaintain zero (0) incident of noncompliance and continue to deliver quality products
Customer PrivacyZero (0) substantiated complaint concerning breaches of customer privacy and loss of customer dataMaintain zero (0) substantiated complaint and continue with the efforts to promote protection of customer privacy
Environmental Conscientiousness
Sustainable Supplier Management
  • All key suppliers screened using environmental and social criteria
  • All key suppliers were identified to be compliant with environmental and social industry standards such as the ISO14001 and/or have published their environmental policy and/or sustainability report
  • Maintain 100% of main contracted suppliers screened using environmental and social criteria
  • Enhance our supply chain management assessment processes to strengthen our evaluation of suppliers’ environmental and social practices
  • Integrate sustainable procurement objectives to buyer performance reviews (where applicable)
EnergyPurchase of 6,000 Renewable Energy Certificate ("RECs") in FY2021, equivalent to 6,000 megawatt-hour
  • Pursue energy reduction measures in our business activities through efficient operations and minimisation of wastages
  • Explore more energy-efficient initiatives and promote heightened disciplined usage amongst our employees in the workplace
Waste ManagementFirst-year of monitoring waste generation
  • Continue to promote further waste reduction efforts at all our operating and manufacturing sites to further eliminate 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., to reduce chemical waste, used coolant, etc.)
Environmental ComplianceZero (0) fines or non-compliance of environmental-related compliance measuresMaintain zero (0) incident of environmental-related compliance issues
Water ManagementWater consumption has increased with the increased production and the acquisition of CEI. However, measures have been taken to reduce water consumption
  • Promote water conservation awareness among our employees
  • Change conventional tap to motion sensor/spring tap
  • Use of reclaimed water