Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced NOx, SOx, and particulate emissions by 12%
• Reduced CO2 emissions by 10%
• Improved energy performance index by 33%, from 49.7 kWh/M2 to 33.3 kWh/M2
• Recycled 76% of non-hazardous waste and 61% of hazardous waste
• Recycled 44% of purchased water

Social Achievements

• 386 students benefited from internship programs and scholarships
• Approximately 23,745 hours of volunteer service provided by employees
• Launched "Bin the Bin" initiative to reduce waste and improve recycling

Governance Achievements

• Complied with all code provisions of the Corporate Governance Code
• Implemented a proactive international tax compliance management process
• Established a risk management framework based on the "Three Lines of Defence" model

Climate Goals & Targets

Environmental Challenges

• Isolated incident of possession of picric acid without a valid license in Hong Kong subsidiary
• Two isolated cases of excessive effluent copper discharge in Singapore and Shenzhen facilities
• 15% employee turnover rate (slight increase from 13% in 2017)

Mitigation Strategies

• Paid fine imposed by Hong Kong Magistrates’ Courts
• Implemented rectification actions including CCTV monitoring, increased water sampling, and third-party lab analysis for effluent discharge incidents
• Constantly working to provide a conducive work environment and learning opportunities to reduce employee turnover

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct aligned with RBA Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G4

Certifications: ISO 14001, OHSAS 18001, ISO 9001, SS506

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 4 Quality Education
• SDG 8 Good Jobs and Economic Growth
• SDG 9 Innovation and Infrastructure
• SDG 11 Sustainable Cities and Communities

ASMPT's operations contribute to these SDGs through various initiatives such as internship programs, scholarships, community investment, and sustainable manufacturing practices.

Sustainable Products & Innovation

• SIPLACE pick-and-place machines designed for easy disassembly and recycling

Awards & Recognition

• Top 100 Global Technology Leaders 2018
• 2018 Factory of the Year/Global Excellence in Operations Award
• Directors of the Year Awards
• Asia’s Best CEO (Investor Relations)
• Best Investor Relations Company (Hong Kong)
• VLSIresearch RANKED 1st/10 BEST/ BEST Suppliers Awards
• Hong Kong Outstanding Enterprises
• Best Corporate Social Responsibility Award – Gold Award
• Best Office Facilities Award
• Caring Company 5 years Plus
• IT & e-Business Fundraising Champion of Trailwalker
• IT & e-Business Speed Award Champion of Trailwalker
• Singapore Quality Class (SQC) Certification for ATS

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Sustainability
• Corporate Governance
• Employee Nurturing
• Community Support
• Innovation
• Human Rights
• Labor Practices
• Supply Chain Management

Environmental Achievements

• Reduced CO2 emissions by 9% year-on-year.
• Improved energy performance index (EnPI) by 33% year-on-year in Hong Kong office (21% energy savings).
• 80% of non-hazardous waste and 59% of hazardous waste recycled.
• 41% of purchased water recycled.

Social Achievements

• Maintained stable employee turnover rate at 14.6% (down 0.4% from 2018).
• Average training hours per employee increased by 9.2% to 16.6 hours.
• Participated in 167 community activities, contributing approximately 25,000 volunteer hours.
• 551 students benefited from internship programs and scholarships.

Governance Achievements

• Complied with all code provisions in the Corporate Governance Code.
• Implemented a Whistleblower Programme.
• No reported incidents of bribery, corruption, discrimination, child labor, or forced labor.

Climate Goals & Targets

Environmental Challenges

• Reduction in production volume leading to increased emission and energy intensity per revenue.
• Global economic decline impacting sales and production.
• Social unrest in Hong Kong affecting some community activities.

Mitigation Strategies

• Optimizing Greater China operations and reducing excess headcount.
• Implementing energy efficiency measures in new Jiujiang factory.
• Intensifying efforts on existing volunteer projects to compensate for reduced activities.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct aligning with Responsible Business Alliance Code of Conduct, Supplier Assessment System, quarterly reviews with suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G4

Certifications: ISO 14001, ISO 45001, OHSAS 18001, OHSAS 18001/SS 506, ISO 9001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 4 (Quality Education)
• Goal 8 (Decent Work and Economic Growth)
• Goal 9 (Industry, Innovation, and Infrastructure)
• Goal 11 (Sustainable Cities and Communities)

ASMPT's four pillars of sustainability align with these SDGs.

Sustainable Products & Innovation

• Energy-efficient SMT equipment, recyclable product components

Awards & Recognition

• Forbes Asia “Best Over a Billion”, Grand Award of the 2019 HKMA Quality Award, Singapore Quality Award 2019, 2019 productronica Innovation Award, IPC APEX EXPO Innovation Award, Company of the Year 2019, Asia’s Outstanding Companies Poll 2019, VLSI Research awards, Electronics Maker Magazine awards, Industrialist of the Year Award 2019, Hong Kong Corporate Citizenship Award Scheme Merit Award, Best Innovation Recruitment Campaign Award, Best Practices Award at the Singapore EENP Awards 2019, Caring Company Logo, Happiness-at-Work Label, Merit Award — Enterprise Category

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Sustainability
• Corporate Governance
• Nurturing Our Employees
• Supporting Our Communities
• Creating Value through Innovation

Environmental Achievements

• Reduced NOx, SOx, and particulate emissions by 23% due to reduced vehicle usage during the COVID-19 pandemic.
• Achieved near-parity CO2 emission intensity despite a 5% increase in CO2 emissions from electricity consumption due to increased production and energy efficiency measures.
• Decreased energy consumption intensity by 1% despite a 5% increase in total energy consumption due to increased production and energy efficiency measures.
• Achieved a 14% decrease in total packaging material consumption and a 17% decrease in consumption intensity despite increased production.

Social Achievements

• Maintained steady employee attrition rates despite the challenges of the COVID-19 pandemic.
• Received the 2020 Supplier Achievement Award from Intel Corporation for its COVID-19 response.
• Two China plants awarded “2019-2020 National Excellent Enterprise Harmonious Labor Relationship Promotion”
• Hong Kong operations received the “Best Corporate Social Responsibility Award (Platinum)” at the CTgoodjobs Best HR Awards 2020.

Governance Achievements

• Complied with all code provisions of the Corporate Governance Code and Corporate Governance Report.
• Implemented a robust procurement process that encourages fair competition and transparency in supplier selection.
• Established a Whistleblower Programme aligned with international and national guidelines.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic and its impact on travel, physical meetings, and onsite work.
• Increased hazardous waste due to the shift of lead frame manufacturing operations from Singapore to Malaysia.
• Reduced water recycling rate due to factors including the transition of lead frame manufacturing, stricter legal requirements, and technical issues in Malaysia.
• Decrease in training hours due to the pandemic.

Mitigation Strategies

• Adapted engagement channels to virtual meetings and events.
• Implemented waste reduction and recycle programs.
• Improved energy efficiency measures at manufacturing sites.
• Addressed technical issues in Malaysia water recycling operations.
• Implemented flexible work arrangements and precautionary measures to ensure business continuity during the pandemic.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct aligned with Responsible Business Alliance Code of Conduct
• Evaluation of suppliers on five criteria: Quality, Costing, Delivery, Service, and Technology

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Global Reporting Initiative G4

Certifications: ISO 14001, ISO 45001, OHSAS 18001, OHSAS 18001/SS 506, ISO 9001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 4 (Quality Education)
• Goal 8 (Decent Work and Economic Growth)
• Goal 9 (Industry, Innovation, and Infrastructure)
• Goal 11 (Sustainable Cities and Communities)

ASMPT's sustainability framework aligns with these SDGs through its four pillars: Nurturing Our Employees, Supporting Our Communities, Creating Value through Innovation, and Managing Environmental Impact.

Sustainable Products & Innovation

• SIPLACE pick-and-place machines designed for easy disassembly and recycling.

Awards & Recognition

• 2020 Supplier Achievement Award from Intel Corporation
• “2019 – 2020 National Excellent Enterprise Harmonious Labor Relationship Promotion” (two China plants)
• “Best Corporate Social Responsibility Award (Platinum)” at the CTgoodjobs Best HR Awards 2020 (Hong Kong)
• “5 Years Plus Caring Company” Logo (Hong Kong)
• ”Happy Company” Logo (Hong Kong)
• “Gold Award of the Fair Trade Award 2020” (Hong Kong)

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Sustainability
• Corporate governance

Environmental Achievements

• Reduced CO2 emissions by 40% compared to 2020
• Reduced hazardous waste by 88% compared to 2020
• Reduced non-hazardous waste by 6% compared to 2020

Social Achievements

• Implemented and fine-tuned a holistic set of policies and programmes to ensure smooth operations while safeguarding employee well-being
• Offered up-skilling and career development opportunities for employees
• Contributed US$404,845 to various social causes

Governance Achievements

• Established ESG Corporate Development team
• Zero reported cases of corruption
• Zero regulatory/compliance breaches

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic and varying restrictions on travel, physical meetings and onsite work hampered stakeholder engagement
• Supply chain disruptions

Mitigation Strategies

• Invested in greater use of electronic and online means of communication and engagement
• Encouraged innovative thinking and resourcefulness throughout ASMPT, such as sourcing for suitable suppliers and fulfilling customer orders in a timely manner despite pandemic-induced supply chain disruptions

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct aligned with RBA Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core Option

Certifications: ISO 9001, ISO 14001

UN Sustainable Development Goals

• SDG 4: Quality Education
• SDG 8: Decent Work and Economic Growth
• SDG 9: Industry, Innovation and Infrastructure
• SDG 11: Sustainable Cities and Communities

The sustainability pillars contribute toward the SDGs’ targets and indicators.

Sustainable Products & Innovation

• LED and Electric Vehicle solutions

Awards & Recognition

• Outstanding Caring Award at the Hong Kong Industry Cares Recognition Scheme 2021
• Gold Award at the Hangjia Aurora Awards (two consecutive years)

Environmental Metrics

ESG Focus Areas

• Minimising Environmental Impact
• Creating Value through Innovation
• Nurturing our Employees
• Supporting our Communities

Environmental Achievements

• 100% renewable energy for Singapore (Corporate Headquarters), Regensburg (AMICRA), and Munich (SMT Headquarters)
• 26% reduction of Scope 1 & 2 carbon emissions from 2022 to 2023
• 20% reduction of total electricity consumption from 2022 to 2023
• 5% Solar panels installed in Singapore, Weymouth (UK), and Huizhou (China) sites contributed to around 5% of total energy consumption
• 700 MWh of electricity saved and approximately 40 tCO2e of emissions reduced in Huizhou plant through air compressor heat recovery system
• Around 402 MWh of electricity generated in Huizhou plant through PV panels, equivalent to 234 tCO2e of emissions reduction
• 12% reduction of water consumption compared to 2022
• Over 90% of ASMPT booth material recycled and reused at Productronica 2023

Social Achievements

• Lower than industry attrition rate in 2023
• High response rate to a new global employee engagement survey
• Established Country Women’s Chapters at major facilities
• Undertook activities to address potential unconscious biases
• Achieved a significant safety milestone with RIR dropping to 0.098 in China, Malaysia and Singapore manufacturing sites
• Zero TRIR in Huizhou plant

Governance Achievements

• Establishment of a robust governance structure
• Zero-tolerance policy towards corruption and regulatory breaches
• No instances of corruption found in 2023
• Successfully met targets for eliminating corruption and regulatory breaches

Climate Goals & Targets

Environmental Challenges

• Climate disruption and geopolitical pressures
• Extreme weather events impacting operational resilience
• International armed conflicts threatening supply chain stability and energy security
• Uncertainty of green technology advancement
• Cost increases and supply shortages for magnets and rare earth elements
• Customers requesting more energy-efficient products
• Potential increase in cost of products given requirements to source for greener components
• Perceived lack of investment and leadership in climate action

Mitigation Strategies

• Developed alternative sourcing strategies
• Investing in R&D to ensure ASMPT stays ahead in green advancements
• Diversify rare elements’ supply chain, and embed climate-related clauses to shield against future supply and price shocks
• Operate various R&D and innovation centres striving to identify green and energy-efficient product designs that fulfill customers’ needs
• Explore low carbon footprint product designs and incorporate emissions considerations into supply chain development and decision making
• Establish clear net-zero ambition and implementation pathway, and communicate the strategy and plans to stakeholders regularly
• Engaging third party expertise to assess and insure assets at risk
• Monitor trends and factor them into infrastructure developments and decision-makings
• Pre-empt requirements by setting and disclosing clear decarbonisation targets and pathways aligned with global standards
• Explore renewable energy and other alternatives to reduce the reliance on local electricity grids
• Proactively lead initiatives such as the SCC Scope 2 Working Group to increase low-carbon energy access and availability where we operate

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct (SCoC)
• Responsible Business Alliance (RBA) standards
• Supplier management meetings and engagement
• Communications platforms
• Supplier assessment system
• Supplier audits

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather incidents
• Long-term climate change

Transition Risks

• Mandatory emissions disclosures and decarbonisation targets
• Slow progress in decarbonisation of local electricity grids
• Uncertainty of green technology advancement
• Cost increases and supply shortages for magnets and rare earth elements
• Customers are requesting more energy-efficient products
• Green supply chain
• Perceived lack of investment and leadership in climate action

Opportunities

• Business growth and access to new markets
• Resource Efficiency
• Product Opportunity
• Resilience

Reporting Standards

Frameworks Used: GRI Universal Standards, TCFD framework

Certifications: ISO 9001, ISO 14001, ISO 50001, ISO 45001, ISO 27001, ISO 27018, OHSAS 18001, SS 506 Part 1

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 8 (Decent Work and Economic Growth)
• Goal 10 (Reduced Inequalities)
• Goal 11 (Sustainable Cities and Communities)
• Goal 17 (Partnerships for the Goals)

Not disclosed

Sustainable Products & Innovation

• Energy-efficient equipment
• AMICRA NOVA Pro die bonding system
• ACAMLine™ for CIS automotive assembly
• CMAT-S lens assembly and alignment system
• WORKS Software Suite
• Virtual Assist smartphone application

Awards & Recognition

• JobsDB The Hong Kong HR Awards 2022/23 — Grand Award of PEOPLE
• 2023 Shenzhen Longgang District Green and Low-Carbon Pioneer Enterprise
• CT goodjobs Best HR Awards 2023 Grand Award (Best in HR Digitalisation Award) and Gold Award (Best Employee Health & Safety Programme Award)
• Manufacturing Industry Best Employer Award
• Employer of the future Award
• Inclusion in Hang Seng Corporate Sustainability Index Series