Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance
• Supply Chain

Environmental Achievements

• Reduced greenhouse gas emissions by 4.4% per euro of R&D investment below 2015 levels.
• Reduced water consumption by 6.7% per euro of R&D investment below 2015 levels.
• Increased non-hazardous waste landfill diversion rate to 72% (up from 65% in 2015).
• Increased water consumed from recycled sources at Singapore operations to 72% (a 10% increase from 2015).

Social Achievements

• Strengthened structural management control of working hours to meet EICC requirements.
• Added an industry expert to lead the global “product safety by design” program.
• 92.5% of employees completed ethics training.
• Recordable Injury Rate remained flat at 0.34/100 employees.
• Expanded fitness reimbursement program in the US, with 63% of US employees participating.

Governance Achievements

• Transparency Benchmark Evaluation score more than doubled from the prior year.
• Progress in safety leadership recognized in a prestigious customer award.
• Three concerns reported through SpeakUp! System, and two via other channels; all investigated and appropriate actions taken.

Climate Goals & Targets

Environmental Challenges

• Potential future changes to the Restriction of Hazardous Substances Directive (RoHS).
• Sensitivity of equipment to major fluctuations in process conditions influencing electrical consumption, GHG emissions, and water consumption.
• Climate change risks (though not currently anticipated as significant).

Mitigation Strategies

• Planning for potential RoHS changes through compliant declarations and improved PLC controls.
• Quarterly Environmental report for senior management to drive focus and effort in managing risks and achieving performance targets.
• Identifying operational parameters contributing to environmental footprint and setting strategies, objectives, and internal reporting goals under EMS.

Supply Chain Management

Supplier Audits: 86% of critical suppliers completed self-assessment; 88% closure rate on corrective actions.

Responsible Procurement

• EICC Code of Conduct as Supplier Code of Conduct
• Environmental Health and Safety Policy
• Code of Ethics Policy
• Intellectual Property Policies
• Hazardous materials identification regulations
• Conflict materials identification and disclosure

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G4 Sustainability Reporting Guidelines

Certifications: ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Products with reduced chamber volume, leading to reduced chemical precursor consumption.
• Energy conservation product improvements, including reduced energy needed to cool down reactors and used during wafer handling.

Awards & Recognition

• Prestigious customer award for 2015 supplier performance.

Environmental Metrics

ESG Focus Areas

• Gender Equality
• Decent Work and Economic Growth
• Industry Innovation and Infrastructure
• Responsible Consumption and Production
• Climate Action

Environmental Achievements

• Exceeded 5-year objectives in both GHG emissions and water consumption reduction (normalized to R&D spend).
• Improved landfill diversion rate to 79%.

Social Achievements

• Implemented a holistic approach to attract, develop, and retain talent.
• Launched a new online platform for managers to develop managerial skills.
• Piloting a technical career ladder framework for engineers.
• Improved total injury rate by 1.5%.

Governance Achievements

• Continued to comply with the Dutch Corporate Governance Code.
• Reduced shareholding in ASMPT from approximately 39% to 25%.

Climate Goals & Targets

Environmental Challenges

• Increased voluntary employee turnover rate to 10.4%
• Initial costs related to new product launches in epitaxy and PECVD impacting gross margin.
• Dependence on a small number of large customers.
• IT security breaches.
• Failure of contract manufacturers to deliver.
• Disruption of material supplies.
• Litigation with Hitachi Kokusai regarding patent infringement.

Mitigation Strategies

• Implementing talent management and succession planning programs.
• Implementing cost reduction measures in manufacturing and supply chain.
• Strengthening customer relationships.
• Implementing an IT risk management framework.
• Developing effective recovery plans for contract manufacturers and material supplies.
• Vigorously defending its position in the litigation.

Supply Chain Management

Supplier Audits: 93% closure rate on corrective actions in 2017

Responsible Procurement

• RBA Code of Conduct
• ASMI’s Environmental Health and Safety Policy
• ASMI’s Code of Ethics
• ASMI’s Intellectual Property Policies
• Hazardous materials identification regulations
• Conflict materials identification and disclosure

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 Sustainability Reporting Framework, Responsible Business Alliance Code of Conduct (RBA)

Certifications: ISO 14001

Third-party Assurance: KPMG Accountants NV

UN Sustainable Development Goals

• SDG 5: Gender Equality
• SDG 8: Decent Work and Economic Growth
• SDG 9: Industry, Innovation and Infrastructure
• SDG 12: Responsible Consumption and Production
• SDG 13: Climate Action

ASMI's CR strategy makes significant contributions to these goals through its three strategic pillars.

Awards & Recognition

• Excellent Performance Award from TSMC (December 2017)
• Preferred Quality Supplier (PQS) award from Intel (March 2018)

Environmental Metrics

ESG Focus Areas

• Safety
• Water Consumption
• Greenhouse Gas Emissions
• Waste Reduction
• Responsible Supply Chain
• Diversity & Inclusion
• Ethics

Environmental Achievements

• Reduced global water consumption by almost 28% in 2018 through the implementation of a water reuse system at the Phoenix site.
• Achieved 100% adoption by key suppliers of the Responsible Business Alliance (RBA) Code of Conduct.

Social Achievements

• Injury rates in operations reached an all-time low.
• Launched various community initiatives (water drive in Phoenix, food drive in Singapore).

Governance Achievements

• Continued to strengthen product safety through fundamental design and global safety reporting system.
• Improved gifts and entertainment protocol and reporting processes.
• Implemented Ethics Code of Conduct, CR policy, and commitment to RBA Code of Conduct.

Climate Goals & Targets

Environmental Challenges

• Slowdown in the memory segment in the second half of the year.
• Dependence on a small number of large customers.
• IT security breaches.
• Supplier delivery failures.
• Patent disputes with Kokusai Electric Company.

Mitigation Strategies

• Strong position in logic and foundry more than offset the slowdown in memory spending.
• Proactive work with customers to meet expectations and diversify customer base.
• Implementation of an IT risk management framework, including a comprehensive IT recovery plan.
• Effective recovery plans and improvement of Sales & Operations Planning process and supplier portal.
• Vigorous defense of its position in patent disputes.

Supply Chain Management

Supplier Audits: 93% closure rate on corrective actions in 2018.

Responsible Procurement

• RBA Code of Conduct
• ASMI’s Corporate Responsibility policy
• ASMI’s Environmental Health and Safety policy
• ASMI’s Code of Ethics
• ASMI’s Intellectual Property policies

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 Sustainability Reporting Framework, SASB standards for the semiconductor industry

Certifications: ISO 14001

Third-party Assurance: KPMG Accountants N.V.

UN Sustainable Development Goals

• Goal 5: Gender equality
• Goal 9: Industry, innovation and infrastructure
• Goal 13: Climate action
• Goal 8: Decent work and economic growth
• Goal 12: Responsible consumption and production

ASMI's CR strategy aligns with and contributes to these goals through various initiatives.

Sustainable Products & Innovation

• Synergis ALD tool (high productivity, lower cost of ownership)
• Intrepid ES epitaxy tool (precise process control, high productivity)

Awards & Recognition

• Supplier Excellence Award from TSMC

Environmental Metrics

ESG Focus Areas

• Anti-Bribery and corruption
• Climate-change adaptation
• Climate-change mitigation
• Corporate culture
• Diversity and gender equality
• Energy availability
• Equal pay
• Health & safety at ASM and ASM suppliers
• Involuntary labor at ASM suppliers
• Living wage
• Training and skills development
• Working hours at ASM and ASM suppliers

Environmental Achievements

• Grew our share of renewable electricity to 88%, on track to reach our target of 100% renewable electricity for our operations by 2024.
• Scope 1+2 GHG emissions reduction vs 2022
• Net Zero by 2035 targets verified by SBTi

Social Achievements

• Voluntary staff turnover dropped from 10% to 7%
• Increased headcount by 7% to more than 4,500 people
• Increased number of events organized by our Women Initiatives Network (WIN)

Governance Achievements

• Formalized the roles of the Supervisory Board and the Audit Committee with regard to sustainability impacts, risks, and opportunities, as well as our ESG disclosures.

Climate Goals & Targets

Environmental Challenges

• Softening market conditions in the leading-edge logic/foundry market
• Memory sales dropped by around 40%
• Geopolitical risk and shift in global supply
• Attracting and retaining talented people
• Scarce resources
• Supply-chain constraints
• Cyber attacks

Mitigation Strategies

• Continued to invest in innovation and expansion
• Invested in our trade compliance team, and further enhanced our processes
• Increased R&D capacity and capability
• Investing in growth and innovation
• Focusing on strengthening our quality organization and processes
• Strengthening ASM through developing our talent pool with more long-term career progression and training
• Strengthening and unifying our ASM culture
• Deploying an in-depth defense, using solutions/controls, such as advanced detection mechanisms, anti-malware, anti-phishing protection, and identity threat-prevention
• Implementing around-the-clock monitoring to detect and respond to any potential vulnerability or weakness that may arise from a cyber threat
• Engaging with suppliers to implement decarbonization strategies
• Implementing energy efficiency and reduction measures across our owned/operated sites

Supply Chain Management

Supplier Audits: 84% of critical and strategic suppliers graded low or medium risk (RBA SAQ)

Responsible Procurement

• RBA Code of Conduct
• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Windstorms/tropical cyclones
• Heat waves/Extreme temperatures
• Heavy precipitation/Flooding
• Water Scarcity/Drought

Transition Risks

• Increased stakeholder scrutiny

Opportunities

• Renewable energy sourcing
• Low carbon products

Reporting Standards

Frameworks Used: GRI, SBTi

Certifications: ISO 14001, ISO 9001:2015

UN Sustainable Development Goals

• SDG 7
• SDG 8
• SDG 9
• SDG 12
• SDG 13

Aligning our sustainability strategy with these SDGs reinforces our commitment to being a responsible corporate citizen and solidifies our position as a catalyst for technological advancement and positive change.

Sustainable Products & Innovation

• SONORA vertical furnace (15-40% reduction in thermal energy per wafer)

Awards & Recognition

• TSMC Excellent Production Support Award
• South Korea Outstanding Partner award
• Intel Distinguished Supplier Award
• Taiwan Top Supplier Award in Safety