Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Market Presence
• Anti-Corruption
• Anti-Competitive Behaviour
• Materials
• Energy
• Water
• Waste Management
• Employment
• Occupational Health & Safety
• Supplier Social Assessment
• Training & Education
• Diversity & Equal Opportunity
• Local Communities
• Customer Privacy
• Corporate Governance
• Business Ethics & Compliance
• Environmental Compliance
• Risk Management
• Human Rights

Environmental Achievements

• Energy intensity ratio improved by 27.2% to 19.72 MWh/$M
• Water intensity ratio improved by 18.4% from 216.3 m3/$M to 176.6 m3/$M
• More than 96% of waste generated were diverted from disposal

Social Achievements

• Employee turnover decreased from 11% to 8%
• 15 community projects & activities completed
• No cases of discrimination reported

Governance Achievements

• Appointed Ms Jeann Low to the Board as an Independent Director, increasing Board independence to 67% and female representation to 17%
• Zero incidents of non-compliance with laws and regulations
• Maintained ISO 14001 certification for Dongguan facilities

Climate Goals & Targets

Environmental Challenges

• Global challenges of weakening global demand, supply chain disruptions, inflationary cost pressures and rising interest rates
• Supply chain disruptions arising from pandemic-induced shutdowns
• Foreign exchange loss resulting from contracts maturing in FY2022
• Higher effective tax rate due to prior year full utilization of tax incentive from China operations

Mitigation Strategies

• Aztech’s Business Continuity Plan and mitigating measures enabled operations to continue with minimal disruptions
• Active collaboration with customers on design changes to enable the use of alternative components
• Close working relations with long-term suppliers and expansion of alternative supplier base
• More stringent approach to foreign exchange risk management
• Cost control measures

Supply Chain Management

Supplier Audits: Annual assessments

Responsible Procurement

• Responsible Minerals Policy
• Conflict-Free Smelter program
• RoHS compliance

Climate-Related Risks & Opportunities

Physical Risks

• Flood risks

Transition Risks

• Compliance risks
• Technological risks
• Reputational risks
• Changing customer behavior risks

Reporting Standards

Frameworks Used: GRI Standards 2021, TCFD

Certifications: ISO 14001, ISO 9001

Environmental Metrics

ESG Focus Areas

• Economic
• Environmental
• Social
• Governance

Environmental Achievements

• Reduced waste generated by 10.8% to 335.3 tonnes in 2023 from 376 tonnes in 2022
• 18% reduction in electricity usage in Dongguan due to new energy-saving air conditioners
• 16% reduction in energy consumption in Singapore operations

Social Achievements

• Zero workplace accidents in 2023
• Average of 18 hours of training per employee in FY2023 (increased from 13 hours in 2022)
• 100% of employees received regular performance and career development reviews

Governance Achievements

• Obtained ISO 27001 certification in June 2023
• No incidents of non-compliance with laws and regulations in FY2023
• No cases of discrimination reported in FY2023

Climate Goals & Targets

Environmental Challenges

• Higher carbon emissions, water, and energy consumption due to the acquisition of a new manufacturing facility and higher business activities
• Cybersecurity incident in February 2024 (though with no material impact)

Mitigation Strategies

• Implementing changes and innovations across operations to improve energy efficiency, reduce material consumption, adopt renewable energy, and formulate comprehensive carbon reduction strategies
• Swift actions to ringfence the impact of the cybersecurity incident; thorough investigation revealed no major data breaches; vigilance in safeguarding systems, data, and intellectual property

Supply Chain Management

Supplier Audits: 397/year

Responsible Procurement

• Responsible Minerals Policy
• Adherence to ethical standards (conflict-free minerals sourcing, elimination of child labor, safe working environment)

Climate-Related Risks & Opportunities

Physical Risks

• Changes in precipitation patterns and extreme variability in weather patterns
• Rising mean temperature
• Rising sea levels
• Increased operating costs
• Write-offs, asset impairment, and early retirement of existing assets
• Increased insurance premiums and potential for reduced availability of insurance

Transition Risks

• Increased pricing of GHG emission
• Enhanced emissions-reporting obligation
• Mandates on and regulation of existing products and services
• Substitution of existing products and services with lower emissions options
• Unsuccessful investment in new technologies
• Costs to transition to lower emissions technology

Opportunities

• Resource efficiency
• New products and services
• Use of supportive policy incentives
• Use of new technologies
• Access to new markets
• Better competitive position
• Reduced operating costs
• Reduced exposure to GHG emissions and sensitivity to changes in the cost of carbon

Reporting Standards

Frameworks Used: GRI Standards 2021, TCFD

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

Third-party Assurance: BDO LLP (internal review)

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 4: Quality Education
• Goal 5: Gender Equality
• Goal 7: Affordable and Clean Energy
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action
• Goal 16: Peace, Justice and Strong Institutions

Aztech's efforts align with the UN SDGs, striving to achieve maximum positive impact on urgent global needs through actions and business practices.