Climate Change Data

Environmental Metrics

ESG Focus Areas

• Ethical Business Conduct
• Regulatory Compliance
• Economic Performance
• Fair Employment Practices
• Energy and Carbon Footprint
• Occupational Health and Safety

Environmental Achievements

• 5.6% reduction in year-on-year energy consumption
• 3.5% reduction in Scope 2 emissions

Social Achievements

• 7% improvement in employee retention rate
• No substantiated complaints from employees regarding unfair or discriminatory employment practices
• 82% of procurement budget spent on local suppliers (10% increase from FY2019)

Governance Achievements

• 0 confirmed cases of corruption within Sunright
• 0 confirmed cases of non-compliance with environmental laws and regulations
• 0 confirmed cases of non-compliance with socioeconomic laws and regulations

Climate Goals & Targets

Environmental Challenges

• Significant drop in demand and limited production caused by the COVID-19 pandemic
• Supply chain disruptions due to COVID-19 lockdowns
• Slowdown in recovery of customer demand

Mitigation Strategies

• Activated business continuity and crisis management plans
• Implemented precautionary measures in accordance with local government advisory requirements
• Stepped up cleaning and disinfection frequencies
• Facilitated work-from-home and split team arrangements
• Embarked on cost-control measures
• Maintained close relationships with suppliers and customers through timely communication and updates
• Implemented cost-control measures including forced leave arrangements

Supply Chain Management

Supplier Audits: Quarterly audits on associate company providing outsourced foreign workers

Responsible Procurement

• Supplier Code of Conduct (covering compliance with laws, anti-corruption, child labor, health & safety, human rights, conflict minerals)
• ISO 9001:2015 or higher quality management systems for suppliers
• At least 50% of purchases sourced locally

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: ISO 14001 (Malaysia operations), AS9100D

Environmental Metrics

ESG Focus Areas

• Ethical Business Conduct
• Regulatory Compliance
• Economic Performance
• Fair Employment Practices
• Energy and Carbon Footprint
• Occupational Health and Safety

Environmental Achievements

• 2% reduction in year-on-year energy consumption
• 5% decrease in electricity consumption from the previous year
• 6% fall in Scope 2 emissions to 54.7 kilo tonnes CO2

Social Achievements

• 0 complaints from employees to regulatory authorities pertaining to unfair or discriminatory employment practices
• Introduced the perfect attendance incentive programme for all employees at production area
• Provided COVID-19 relief allowance for employees
• Maintained 100% compliance with all COVID-19 prevention guidelines

Governance Achievements

• No confirmed cases of corruption within Sunright
• 0 confirmed cases of non-compliance with environmental laws and regulations
• 0 confirmed cases of non-compliance with socioeconomic laws and regulations

Climate Goals & Targets

Environmental Challenges

• Production interruptions, supply chain disruptions and delivery deferments due to the COVID-19 Pandemic
• Physical lockdowns and movement restrictions across business operations
• Slowdown in recovery from customer demand

Mitigation Strategies

• Established three priorities: keep our employees safe, meet the needs of our customers and prepare Sunright for recovery
• Ensured 100% compliance with all COVID-19 prevention guidelines
• Refined business development plans and work processes to adapt to the new normal
• Implemented strategic business continuity plans
• Maintained close working relationship with clients via online platforms
• Stepped up communications with local suppliers

Supply Chain Management

Supplier Audits: Quarterly audits for subsidiaries with a large number of foreign workers

Responsible Procurement

• Stringent criteria in selecting environmentally and economically accountable suppliers
• Supplier Code of Conduct
• Elimination of conflict minerals
• ISO 9001:2015 standard for quality management systems

Climate-Related Risks & Opportunities

Physical Risks

• Flood, fire and jams at major ports

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: ISO 9001:2015, ISO 14001:2015, IATF 16949:2016

Environmental Metrics

ESG Focus Areas

• Occupational health and safety
• Regulatory compliance
• Corporate governance and business ethics
• Economic performance
• Energy and carbon footprint
• Fair employment practices

Environmental Achievements

• 2% reduction in year-on-year electricity consumption
• 4% reduction Scope 1 fugitive emissions
• Finalised plans for the installation of a rooftop solar panel system, which is estimated to supply roughly 650 MWh/year of carbon-free energy

Social Achievements

• Zero fatalities for both employees and workers in FY2022
• Employees underwent an average of 40.5 hours of training
• Zero substantiated complaints were received from our employees regarding unfair or discriminatory employment practices

Governance Achievements

• Enhanced sustainability reporting by adopting the new Global Reporting Initiative Standards 2021
• Teams were formed to develop practices and to give priority in addressing climate-related risks
• 271 (29%) employees received training on anti-corruption policies

Climate Goals & Targets

Environmental Challenges

• Global economic slowdown caused by the COVID-19 pandemic
• Supply chain disruptions
• Severe component shortages
• Rising prices

Mitigation Strategies

• Scaled down electronic manufacturing services
• Resized workforce for better deployment
• Invested heavily on capital equipment
• Implementing relevant business continuity plans
• Local sourcing of products and services

Supply Chain Management

Supplier Audits: Periodic, Quarterly (for subsidiaries with a large number of outsourced foreign workers), Monthly (on accommodations provided for foreign workers)

Responsible Procurement

• Stringent criteria in selecting environmentally and economically accountable suppliers
• Supplier Code of Conduct
• Three-Step Supply Chain Management Process
• At least 50% of purchases are sourced locally

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards 2021

Certifications: ISO 9001:2015, ISO 14001:2015, IATF 16949:2016

Environmental Metrics

ESG Focus Areas

• Occupational health and safety
• Regulatory compliance
• Corporate governance and business ethics
• Economic performance
• Energy and carbon footprint
• Fair employment practices

Environmental Achievements

• Installed a rooftop solar panel system in Malaysia, projected to generate approximately 650 MWh per year of renewable energy and saving approximately $100,000 per year in operating costs.
• Procured 797 MWh of renewable energy for one of its facilities in Malaysia through the Green Electricity Tariff program.

Social Achievements

• Recorded zero fatalities or recordable injuries for both employees and workers in FY2023.
• Employees underwent an average of 23.8 hours of training in FY2023.
• Resumed recreational activities for staff, including sports and bonding activities.
• No substantiated complaints concerning human rights violations in FY2023.
• No substantiated complaints from our employees regarding unfair or discriminatory employment practices within Sunright in FY2023.

Governance Achievements

• Implemented a zero-tolerance policy with regard to fraud, bribery and corruption.
• 870 (90%) employees received training on anti-corruption policies across Singapore, Malaysia and China in FY2023.
• No confirmed cases of corruption within Sunright in FY2023.

Climate Goals & Targets

Environmental Challenges

• Weakened demand in consumer spending and businesses leading to a contraction in the semiconductor industry.
• Revenue sharply declined, resulting in losses.
• Orders for SLT systems were cancelled due to a delay in the introduction of the end customer’s new car models.
• Strong headwinds faced in China operations due to COVID-19 restrictions.
• Customers in the consumer electronics sector experienced high inventories.

Mitigation Strategies

• Upgrading old testers with the latest technology and actively channeling resources to expand service infrastructure.
• Committing to strategic expansion of products and services.
• Designing a new SLT model to double throughput.
• Designing a cutting-edge solution to meet the growing need for higher voltage devices used in electric vehicles.
• Innovatively designing testing solutions for high-power chips, effectively preventing overheating and damage.

Supply Chain Management

Supplier Audits: Regular assessments of suppliers; quarterly audits for contractors providing outsourced foreign workers; monthly audits on foreign worker accommodations.

Responsible Procurement

• Supplier Code of Conduct requiring compliance with policies regarding forced labour, child labour, and upholding human rights; elimination of conflict minerals; ISO 9001:2015 or higher quality management systems.

Climate-Related Risks & Opportunities

Physical Risks

• Increased intensity and frequency of storms and floods
• Change in average temperature
• Potential disruptions to operations due to workforce absenteeism from heat-related health stresses

Transition Risks

• Policy and legal changes (climate reporting regulations)
• Reputation (failure to meet stakeholder expectations)

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards 2021, TCFD

Certifications: ISO 9001:2015, ISO 14001:2015, IATF 16949:2016

Environmental Metrics

ESG Focus Areas

• Occupational health and safety
• Regulatory compliance
• Corporate governance and business ethics
• Economic performance
• Energy and carbon footprint
• Fair employment practices

Environmental Achievements

• 2% reduction in year-on-year electricity consumption
• 4% reduction in total energy consumption
• 22% decrease in Scope 1 emissions

Social Achievements

• Zero work-related fatalities
• One recordable injury
• 83% of procurement spending was used to purchase supplies locally
• Zero substantiated complaints concerning human rights violations
• Zero substantiated complaints from employees regarding unfair or discriminatory employment practices
• Average of 32.9 hours of training per employee

Governance Achievements

• Implemented a Workforce Risk Management Policy
• Enhanced Non-discrimination Policy
• 776 (84%) employees received training on anti-corruption policies
• Zero confirmed cases of corruption

Climate Goals & Targets

Environmental Challenges

• Decline in sales (7% decrease in revenue)
• Economic turbulence and escalating trade tensions
• Lower production yields due to new technologies in early stages of market adoption

Mitigation Strategies

• Reduced expenses
• Monetised underperforming assets
• Strategically invested in high-growth areas (AI and EV)
• Developed high-power test probes for SiC market
• Completed design of a fully automated and integrated smart system

Supply Chain Management

Supplier Audits: Regular supplier evaluation process; quarterly audits for contractors providing large numbers of outsourced foreign workers; monthly audits on foreign worker accommodations.

Responsible Procurement

• Supplier Code of Conduct (covering compliance with laws, anti-corruption, child labor, health and safety, human rights, conflict minerals)
• ISO 9001:2015 or higher quality management systems for suppliers
• Local sourcing (83% of procurement spending in FY2024)

Climate-Related Risks & Opportunities

Physical Risks

• Increased intensity and frequency of storms and floods
• Change in average temperature

Transition Risks

• Policy and legal changes (climate-reporting regulations)
• Reputation (stakeholder expectations regarding climate change)

Opportunities

• Energy efficiency
• Resource efficiency

Reporting Standards

Frameworks Used: GRI Standards 2021, TCFD

Certifications: ISO 14001:2015, ISO 9001:2015, IATF 16949:2016

Sustainable Products & Innovation

• High-power test probes for SiC market
• Fully automated and integrated smart system