The Board provides overall direction for the Company’s sustainability strategies. The Team is responsible for the consolidation of this Report.

AEM is committed to creating sustainable long-term growth while developing our people and positively changing our environment. We have established a Sustainability Team made up of employees from Quality Assurance, Human Resource (HR), Facilities, and Corporate departments. 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. In addition, the Team helps the Board determine the Company’s material economic, environmental, and social aspects and set quantitative and qualitative targets for the forthcoming year.

Our sustainability strategy focuses on the three key pillars:
Key pillarPerpetual Targets and FY2021 Targets (when stated)FY2020 Achievements
Growing sustainable profit
Corporate Governance
  • Continue to uphold the highest corporate governance standards and an effective enterprise risk management framework to enhance business resilience and agility.
  • Continue to provide accurate and timely disclosure on the Company, including financial situation, performance, and governance structure.
  • Continue to adhere to the Group’s Code of Conduct, financial discipline, and management, driving accountability and long-term value creation.
  • Zero substantiated cases of corruption or legal compliance issues.
  • Provided timely quarterly business updates and half-yearly results releases.
  • Frequent updates on financial targets and sales orders received.
  • Regular Board and Board committee meetings as well as frequent engagements with management.
  • Zero substantiated cases of corruption or legal compliance issue.
Economic performance
  • Continue to provide innovative solutions through R&D.
  • Continue to provide continuous 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 they can patent.
  • Maintain economic value generation of at least 5% (FY2021 Target).
  • Achieved the financial targets as guided to investors with a performance of S$519.0 million revenue.
  • Considerable engineering development projects and revenue from customers, which is a positive sign of customer satisfaction and close working relationship.
  • Staff members were awarded Technical Awards for the initiation of innovative ideas.
  • Achieved FY2020 Target of increase economic value generation by at least 5%.
Investing and caring for our people
Diversity and Inclusion
  • Encourage diversity in our workforce in terms of gender, race, and age groups.
  • Ensure whistleblowing channels are in place for employees and various stakeholders.
Talent acquisition and retentionContinue to reward and provide employees with competitive remuneration packages and welfare to attract and retain talents and staff.A low turnover rate of 0.90% a month. (Achieved FY2020 Target of below 1.50%).
Saving our planet
Community InvolvementContinue to engage with the community and develop more partnerships with charity organisations to improve our community’s welfare.
  • Our US teams donated masks to several places of worships.
  • Our Malaysia site donated masks to the Customs office in Penang.
  • Employees could donate their vacation leave to convert to cash to help colleagues who faced financial difficulties due to the pandemic.
  • Healthcare staff Changi General Hospital and Sengkang General Hospital received hampers, to appreciate them for working long hours during COVID-19.
  • Donated milk powder to THK Nursing Home’s elderly residents.
Environmental Footprint
  • Maintain zero environmental issues and continue to improve energy consumption efficiency and emission intensity.
  • Maintain reduction of energy emission intensity ratio by 10% (FY2021 Target).
  • Zero incidents of environmental-related issues.
  • Achieved a lower energy consumption rate per monetary unit of sales and emission intensity ratio by 12.7%. (Achieved FY2020 Target of reduction of energy emission intensity ratio by 10%)
Sustainable Supplier Management100% of main contracted suppliers to be in line with AEM requirements100% of AEM’s key fabrication suppliers screened and in line with AEM requirements.