Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Social Responsibility
• Corporate Governance

Environmental Achievements

• Saved more than 30% of the manufacturing cost with best-selling Etch equipment.
• MOCVD equipment became the leading domestic and international equipment in the manufacturing of GaN-based LED devices.
• Reduced electricity consumption by more than 10% per substrate in MOCVD products, saving 70,000 kWh electricity per year each reactor.
• Optimized heater materials reducing energy consumption in rhenium manufacturing.
• Reduced material costs by about 20% with dual-station design in LPCVD products.
• Increased tool uptime and throughput in LPCVD products, decreasing consumption during idle time.
• Achieved 10% higher productivity efficiency in ALD tungsten product, leading to 10% lower chemical and energy consumption.
• Implemented energy audit and launched special technical reform action for energy conservation and carbon reduction in AMEC Nanchang.
• Signed implementation contract of the distributed photovoltaic project at the industrial base in Lin-Gang Special Area.
• Signed green power procurement contracts at major production base in Shanghai sites.
• Recycled 3,132 fixtures and wooden packaging and about 600 kg of plastic pellets, resulting in cumulative cost savings of RMB 1.39 million.
• Achieved 100% security of approval information with online smart work order system, increasing warehouse efficiency by 30% and saving 450,000 pcs of paper.
• Increased distribution efficiency by 40% and improved the utilization rate of storage space for small-sized materials by 190% with new automatic warehouse in Lingang.

Social Achievements

• Recruited 461 new employees, including 62 new college graduates from over 40 colleges and universities.
• Launched collaboration programs with Nanchang University and the University of Science and Technology of China.
• Renovated facilities in township primary schools and continued to care for and subsidize the impoverished elderly.
• Established and improved diverse talent acquisition and career development systems.
• Broadened talent recruitment channels, attracting more industry-experienced management and technical talents from abroad.
• Provided 69 training sessions to promote the CSR performance of suppliers and made 150 visits to over 50 suppliers to provide CSR training.
• Organized various employees activities and established employee clubs, holding a 19th-anniversary party with nearly 1,000 AMEC employees.
• Provided 69 training sessions to promote the CSR performance of suppliers.
• Provided annual occupational health checks and additional checks for employees potentially exposed to occupational hazards.
• Offered personalized welfare health checks annually for regular employees.
• Provided special aids to those hospitalized employees with serious illness or surgeries.
• Established fitness centers and Healthcare Center providing various services.
• Provided gift packs to employees on their birthdays and traditional Chinese festivals.
• Provided perks to employees when getting married or having babies.
• Provided breakfast, lunch, afternoon tea and dinner in the Company cafeteria.
• Provided shuttle bus or transportation allowance for commuters and mobile phone allowance.
• Provided competition prize awards, nursery fee reimbursement, and healthcare insurance to the children of employees.
• Provided company annual leave in addition to statutory annual leave, full-pay sick leave and service award leave.
• Provided around 400 units of various types of housing for employees at the Lingang base.

Governance Achievements

• Established a three-level ESG governance structure (decision-making, management, and execution).
• Established an ESG Committee and ESG Leadership Group.
• Defined seven ESG governance goals and specific measures relating to technological innovation, green operations, supply chain development, employee rights protection, community development, and business compliance.
• Improved internal control and compliance systems, enhancing risk management and promoting steady advancement of corporate governance.
• Established a Compliance Management Committee.
• Formulated and implemented the Contract Management System and launched the Contract Management Operating System.
• Formulated the AMEC Anti-fraud and Complaint Reporting System and Internationally Applicable Business Conduct and Ethics Code of AMEC.
• Set up a reporting e-mail address for reporting clean governance violations.
• Updated the Internal Control Manuals of 14 key modules.
• Implemented an internal control self-evaluation mechanism.
• Established an Ethics and Compliance team responsible for business ethics management.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Climate change impacts
• New factory challenges
• Extensive new product development

Mitigation Strategies

• Developed alternative sourcing strategies
• Strengthened supply chain risk management
• Implemented management of Change (MOC) and Room Readiness Check to reduce operation risks.
• Established clear goals for carbon emission reduction to achieve carbon neutrality by 2035.
• Devised technological roadmap to carbon neutrality and actively taken governance actions to address climate change.
• Implemented an energy audit and launched special technical reform action for energy conservation and carbon reduction in AMEC Nanchang.
• Signed the implementation contract of the distributed photovoltaic project at the industrial base in Lin-Gang Special Area.
• Signed green power procurement contracts at our major production base in Shanghai sites.
• Improved energy efficiency and increased the proportion of renewable energy use.
• Employed carbon offsets to address unavoidable carbon emissions.

Supply Chain Management

Supplier Audits: 12 key suppliers online evaluation and 5 suppliers on-site evaluation

Responsible Procurement

• Supplier Code of Conduct
• Supplier EHS Audit Operating Guidelines
• Work Instruction for Supplier EHS Evaluation
• AMEC Supplier Code of Conduct Self-Assessment Questionnaire

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Code of Corporate Governance for Listed Companies (CSRC 2018), Guideline No.2 for the Application of Self-regulatory Rules for Companies Listed on the SSE STAR Market (SSE 2022), Guideline No.1 for the Self-Regulation of Listed Companies (SSE 2023), Guidelines on Social Responsibility for the Electronic Information Industry (SJ/T 16000-2016), GRI Standards 2021

Certifications: ISO 9001, ISO 14001, ISO 45001, ISO 27001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Energy-efficient etching and MOCVD systems
• Dual-station etching equipment
• 12-inch LPCVD equipment (Preforma Uniflex CW)
• VOCs purifiers and eco-friendly local scrubbers

Awards & Recognition

• Shanghai Science and Technology Progress Award (First Prize)
• Gold Award of the 23rd China International Industry Fair (CIIF)
• AMEC Nanchang Champion Enterprise for a Single Field of the Manufacturing Industry in Jiangxi Province
• Forbes China 50 Most Innovative Companies
• SEMI SCC Carbon Neutrality and Sustainable Development Leading Enterprise Award
• Shanghai Innovative Corporate Headquarter