Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Installation of solar energy panels at factories in Chuzhou (China), Selangor (Malaysia), and Thailand.
• Zero non-compliance with environmental laws and regulations.

Social Achievements

• Zero work-related fatalities, injuries, and occupational disease cases (excluding COVID-19 cases).
• 11,499 training hours conducted, a 139% increase from FY2020.

Governance Achievements

• Adoption of TCFD Recommendations.
• Zero fines or non-monetary sanctions for non-compliance with socioeconomic legislations.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic and its impact on operations.
• Supply chain disruptions.
• Semiconductor chip supply chain challenges affecting automotive segment.

Mitigation Strategies

• Implementation of COVID-19 prevention measures and compliance with local guidelines.
• Nearshoring strategy for supply chain resilience.
• Investments in capacity and capabilities to meet customer demands.
• Initiatives to manage and mitigate the impact of supply chain disruptions.

Supply Chain Management

Supplier Audits: Annual assessments, on-site audits, self-assessment audits, rating system (JMAT).

Responsible Procurement

• Nearshoring strategy
• Supply Chain Due Diligence
• Supplier Assessment and Quality Control procedure
• RBA Code of Conduct for Suppliers

Climate-Related Risks & Opportunities

Opportunities

• Renewable energy projects (solar panels)

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 9001:2015, IATF 16949:2016, ISO 14001:2015, ISO 45001:2018, IATF 16949:2016, ISO 13485:2016

UN Sustainable Development Goals

• Goal 7: Affordable and clean energy
• Goal 13: Climate action

Solar energy projects, environmental compliance initiatives, occupational health and safety programs.

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Established a company-wide ESG program, Frencken*Sustain*Life (FSL), to drive ethical, sustainable, and profitable growth.
• Mechatronics Division upgraded cleaning and cleanroom facilities to meet stringent particle cleanliness requirements.

Social Achievements

• Launched a company-wide ESG program, Frencken*Sustain*Life (FSL), to drive ethical, sustainable, and profitable growth.
• Implemented a Global Human Resources Policy aligned with UN Guiding Principles on Business and Human Rights and ILO Tripartite Declaration.
• Incorporated an SOBC module (translated into 8 languages) into the group’s learning and development system.
• Conferred several supplier awards in 2022 from customers in the semiconductor and industrial automation segments.
• IMS Division conferred Best Quality Award by a key automotive customer.

Governance Achievements

• Established Frencken’s ESG baselines and a performance dashboard to track milestones.
• Implemented a whistleblowing channel reporting confidentially to the Chairman of the Audit Committee.
• Integrated the Anti-bribery & Corruption Policy into HR practices and engaged all employees via online learning modules.
• Board and Management committed to high standards of corporate governance aligning with the Code of Corporate Governance 2018.

Climate Goals & Targets

Environmental Challenges

• Inflationary cost pressures, particularly in Europe.
• Higher depreciation expenses due to capital investments.
• One-time write-down for inventory adjustment and obsolescence in the USA.
• Weaker-than-expected recovery of the global automotive industry.
• Continuing disruptions in the global supply chain.
• Depreciation of the Euro against the Singapore Dollar.
• Slower momentum in the semiconductor sector.
• Supply constraints and inflationary cost pressures in the automotive industry.
• Pandemic-induced lockdowns in China.

Mitigation Strategies

• Operational initiatives and cost-sharing arrangements with customers.
• Capacity expansion and facility upgrading plans.
• Negotiations with customers on cost-sharing arrangements.
• Proactive approach with customers to manage supply chain and operational costs.
• Leveraging global manufacturing footprint to support customers from Europe and the USA.
• Utilizing proprietary eco-PVD technology to secure a project for serial production of automotive radar antenna.
• Partnership with Gapwaves to win more programs and develop higher resolution radar antenna solutions.

Supply Chain Management

Responsible Procurement

• Working with nearshore suppliers to mitigate global supply chain disruption risks.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards, SGX-ST “Core ESG Metrics”

Certifications: ISO 9001, ISO 14001, ISO 45001, IATF 16949, ISO 13485

UN Sustainable Development Goals

• SDG 3
• SDG 8
• SDG 9

CSR investments aligned to boosting employees’ wellbeing, community engagement, and trainings.

Sustainable Products & Innovation

• Eco-PVD technology for automotive radar antenna
• Oil filtration solutions for automotive

Awards & Recognition

• Several supplier awards in 2022
• Best Quality Award by a key automotive customer

Environmental Metrics

ESG Focus Areas

• Sustainable and Resilient Supply Chain
• ESG Performance
• Environment
• Social (Safety)
• Ethics & Governance

Environmental Achievements

• Adherence to ISO14001 management systems and EMAS guidelines.
• Zero tolerance for non-disclosure of materials declarations (CMRT, PFAS, PBT, REACH, ROHS).

Social Achievements

• Fostering a safe and healthy work environment, following ISO 45001 and ILO guidelines.
• Providing personal protective equipment and safety training.
• Adherence to NO forced/bonded/involuntary/exploitative labor and NO Child labor policies.
• Zero recruitment fee policy.

Governance Achievements

• Zero tolerance for bribery and corruption.
• Establishment of a whistleblowing channel.
• Annual Standards of Business Conduct (SOBC) training for all employees.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions/crisis situations.
• ESG risks in supply chain (environmental, governance, social).

Mitigation Strategies

• Business Continuity Plan for supply chain disruptions.
• Supplier selection and audit based on ESG criteria.
• Emergency preparedness drills (fire drills, safety evacuation trainings).
• Corporate-wide sustainability and ESG performance Roadmap (Frencken Sustain Life - FSL).

Supply Chain Management

Responsible Procurement

• ESG criteria for supplier selection

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: RBA guidelines, ISO14001, EMAS, ISO 45001, ILO Guidelines on Occupational Safety and Health

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Implemented innovative technologies to measure and cap environmental degradation, including waste and recycling best practices.
• Invested in technologies for conserving energy and water, reducing emissions, and reusing and recycling materials.
• Adherence to ISO 14001 environmental management system.

Social Achievements

• Equal employment opportunities and fair market labor practices.
• Zero recruitment fee policy for foreign workers.
• Prohibition of discrimination, forced labor, and child labor.
• Adherence to ILO conventions and local legal employment age requirements.
• Respect for internationally recognized human rights.
• Continuous improvement of work conditions, including 24-hour security.
• Respect for freedom of association and collective bargaining.

Governance Achievements

• Strict enforcement of no corruption and no bribery policies.
• Supply chain due diligence assessments based on a customized risk mitigation framework.
• Adherence to ISO 9001 and ISO 45001 management systems.

Climate Goals & Targets

Environmental Challenges

• Managing ESG risks across 19 global operations.
• Ensuring compliance with diverse legal and regulatory frameworks.

Mitigation Strategies

• Adaptation of OECD Responsible Business Conduct Guidelines and UN Guiding Principles.
• Implementation of robust management systems (ISO 9001, ISO 14001, ISO 45001).
• Centralized communication and compliance verification.

Supply Chain Management

Responsible Procurement

• Supply chain due diligence assessments; adherence to local regulatory guidelines.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 9001, ISO 14001, ISO 45001, IATF 16949, ISO 13485