Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Supply Chain Sustainability
• Workforce Diversity
• Community Impact

Environmental Achievements

• Installed a 60 kW photovoltaic system, resulting in approximately 125,000 kWh reduction in energy consumption.
• Implemented several sustainability initiatives at AMPI resulting in 2040 MT CO2e savings.
• Reclaimed approximately 1.685 million gallons of water at AMPI.
• Conserved approximately 18,000 gallons of water and avoided approximately 110,000 kilograms of organic acid waste per year through the Pre-Plating and Post Plating Chemical Bath Life Extension project.

Social Achievements

• Launched Green Transformation Project at AMPI, including tree planting.
• Offered various site-based community environmental initiatives and programs for employees.
• 70% employee engagement in free mass transport shuttle services in the Philippines.

Governance Achievements

• Established an ESG Steering Committee.
• Created two full-time ESG roles (Senior Director, ESG and ESG Manager).
• Linked executive compensation to ESG goals.

Climate Goals & Targets

Environmental Challenges

• Acute physical risks from cyclones, hurricanes, and typhoons impacting the Philippines facility.
• Chronic physical risks from rising sea levels impacting suppliers.
• Reputational risks from failing to meet evolving customer demand for sustainable products.
• Emerging regulations impacting manufacturing capabilities and increasing operational costs.

Mitigation Strategies

• Developed and maintain a Business Continuity Plan (BCP) and Business Interruption Recovery Plan (BIRP).
• Dual- and tri-sourcing suppliers.
• Investing in R&D for low-emission products and services.
• Investing in emissions reduction projects ($930,000 in FY23).

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct incorporating RBA Code of Conduct, Version 7.0

Climate-Related Risks & Opportunities

Physical Risks

• Cyclones, hurricanes, typhoons
• Sea level rise
• Flooding

Transition Risks

• Emerging regulations
• Shifts in consumer preferences

Opportunities

• Development and expansion of low-emission goods and services
• Development of new products/services through R&D and innovation
• Reduced water usage

Reporting Standards

Frameworks Used: GRI, ISO 14064-3

Certifications: ISO 14001, IATF 16949

Third-party Assurance: Third-party limited assurance

UN Sustainable Development Goals

• SDG 7 (Affordable and Clean Energy)
• SDG 9 (Industry, Innovation, and Infrastructure)
• SDG 12 (Responsible Consumption and Production)
• SDG 13 (Climate Action)

Allegro's products and initiatives contribute to these goals through energy efficiency, renewable energy, and emissions reduction.

Sustainable Products & Innovation

• Clean Energy Infrastructure products
• Electrification/E-Vehicles/Hybrid EV Solutions
• Consumer Goods
• Industrial Applications

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity, Equity, and Inclusion
• Supply Chain Sustainability
• Community Impact
• Product Sustainability

Environmental Achievements

• Completed two solar array installations at AMPI facility, generating approximately 125,000 kWh or 89 MT of CO2e/year savings.
• Reduced annual energy consumption by approximately 1,394,401 kWh through air-cooled-to-watercooler-chiller conversion.
• Recycled approximately 89% of solid waste at AMPI.
• Recycled approximately 1.7 million gallons of water at AMPI.
• 18% reduction in normalized emissions (metric tons CO2 equivalent per million U.S. dollars) since FY18 baseline.

Social Achievements

• Launched two Employee Resource Groups (Women@Allegro and Early Career).
• Increased female leadership by 46%.
• Donated over $65,000 to non-profit organizations.
• Provided over $1.3 million in tuition reimbursement.
• Supported disaster response efforts in local communities with over $3 million in donations.

Governance Achievements

• Established an internal ESG Steering Committee.
• Created new roles of Senior Director, ESG and ESG Manager.
• Aligned ESG work with SASB standards and expanded disclosures.
• Submitted first Conflict Minerals Report to the US SEC.

Climate Goals & Targets

Environmental Challenges

• Reducing Scope 3 emissions.
• Increasing recycling rates.
• Further reducing water consumption.
• Managing climate-related risks to operations.

Mitigation Strategies

• Evaluating approach to Scope 3 emissions data collection.
• Implementing initiatives to increase recycling rates (e.g., Paperless Receipt Traveler Project).
• Implementing water reclamation projects (e.g., deionized reject water reclamation).
• Conducting environmental impact and risk engineering assessments to mitigate physical climate risks.

Supply Chain Management

Supplier Audits: Tiered approach based on material criticality; includes sections on Environmental and Social Responsibility.

Responsible Procurement

• Supplier Code of Conduct based on RBA, UDHR, ILO, SAI, and ETI principles.
• Requirement for ISO 14001 certification for subcontractors and direct materials suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather events (typhoons, flooding).

Transition Risks

• Regulatory changes, market shifts.

Opportunities

• Development of energy-efficient products for clean energy applications.

Reporting Standards

Frameworks Used: SASB

Certifications: ISO 14001, ISO 45001

Third-party Assurance: LRQA

Sustainable Products & Innovation

• Energy-efficient power and sensing solutions for e-mobility, clean energy, and automation.

Awards & Recognition

• Best Cooperation Supplier of 2022 (Wodeer and Geely)
• Inc. Magazine’s Best-Led Companies List (FY22)
• Excellent Quality Award of the Year (VMAX)
• Superior Customer Service Award (Nexteer)
• 2021 Best Support Award (Chery Automobile)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Waste Management
• Water Stewardship
• Resource Efficiency
• Employee Welfare
• Community Engagement
• Supply Chain Management
• Ethical Conduct
• Board Oversight
• Sustainable Innovation
• Stakeholder Engagement

Environmental Achievements

• Committed to achieving 50% renewable energy at manufacturing facilities by fiscal year 2030 and 100% globally as infrastructure allows
• Committed to diverting 95% of waste from landfills
• Continuous evaluation and implementation of strategies to minimize water withdrawal, consumption, and discharge

Social Achievements

• Fostering an inclusive environment valuing diversity
• Prioritizing employee well-being with a safe and healthy workplace
• Offering various social impact programs (volunteering, gift matching, donations, scholarships)

Governance Achievements

• Proactive ESG oversight and risk management by the Board of Directors
• Implementation and enforcement of Anti-Corruption Policy
• Established 24/7 ethics alert line

Climate Goals & Targets

Environmental Challenges

• Minimizing environmental impact of products throughout their lifecycle
• Reducing dependency on freshwater sources
• Engaging supply chain to advance sustainability

Mitigation Strategies

• Implementing Life Cycle Analysis (LCA) in product development
• Implementing water conservation projects and conducting water risk assessments
• Requiring suppliers to adhere to Supplier Code of Conduct

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Smaller, lighter, more user-friendly products to help manufacturers design products with lower energy needs and smaller carbon footprints