Climate Change Data

Environmental Metrics

ESG Focus Areas

• Resource efficiency
• Employee health, personnel development, training and development
• Promoting the common good
• Supplier relationships
• No purchase of conflict minerals
• Compliance codices and policies

Environmental Achievements

• Reduced CO2 emissions by more than 1,800 tonnes through various energy efficiency projects (e.g., LED lighting conversion, optimization of cooling systems).
• Saved 23 MWh per year per process module by replacing a generator with a more efficient one.
• Saved well over 255 kg of CO2 a year through paperless invoicing.

Social Achievements

• 100% of employees on parental leave returned to their positions.
• Very low number of work-related accidents, none severe or fatal.
• Donated more than EUR 14,000 to charities in the past 5 years.
• Implemented a company-wide suggestion system resulting in numerous accepted improvements.

Governance Achievements

• Established an internal CSR Workgroup to report on progress and promote sustainable business practices.
• Implemented a mandatory, Group-wide Code of Conduct.
• No events requiring external reporting related to corruption or bribery occurred.

Climate Goals & Targets

Environmental Challenges

• Fluctuations in demand for AIXTRON’s products requiring flexible workforce adjustments.
• Managing a complex global supply chain with potential risks related to human rights, environmental pollution, and conflict minerals.

Mitigation Strategies

• Working with engineering service providers and temporary employment agencies.
• Implementing a risk-oriented approach to monitor suppliers for sustainability aspects, including a Code of Conduct and supplier data sheets.
• Joining the Responsible Minerals Initiative (RMI) to promote responsible mineral sourcing.

Supply Chain Management

Supplier Audits: Self-disclosure through mandatory supplier data sheet and questionnaire.

Responsible Procurement

• Code of Conduct for Suppliers
• Conflict mineral disclosure based on OECD guidelines and Dodd-Frank Act.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 50001

Third-party Assurance: Deloitte GmbH Wirtschaftsprüfungsgesellschaft

Sustainable Products & Innovation

• GaN-based power components for energy-efficient applications.
• Energy-saving LEDs for display applications.

Awards & Recognition

• dena Energy Efficiency Award (2017)

Environmental Metrics

ESG Focus Areas

• Environment and ecology
• Society and social welfare
• Employees and occupational health and safety
• Combating corruption and bribery
• Respect for human rights

Environmental Achievements

• Exceeded energy saving targets in 2020, saving more than 463,600 kWh and 261 tonnes of CO2 equivalents (4.2% reduction).
• Completed conversion to 100% LED lighting at production sites, saving around 526,000 kWh and 225 tonnes of CO2 equivalents.
• Replaced two generators with one high-efficiency inverter, saving around 57,600 kWh and 30.4 tonnes of CO2 equivalents.
• Reduced CO2e emissions by almost 52% to 2,031.08 tonnes in 2020 (from 4,215.37 tonnes in 2019).

Social Achievements

• Successfully held the first virtual company run, with 116 employees participating.
• Implemented measures to protect employees during the COVID-19 pandemic, including mobile working and hygiene protocols.
• Reduced work-related accidents resulting in lost workdays from 230 in 2019 to 18 in 2020.

Governance Achievements

• No incidents of bribery or corruption reported in 2020.
• Implemented a Code of Conduct for suppliers, requiring compliance with ethical and legal standards.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the COVID-19 pandemic.
• Increased SF6 emissions in 2020 due to testing requirements (no current alternatives available).

Mitigation Strategies

• Implemented mobile working and hygiene measures to mitigate pandemic disruptions.
• Continued efforts to reduce energy consumption and CO2 emissions.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct requiring compliance with ethical and legal standards; no tolerance for conflict minerals.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products.

Reporting Standards

Frameworks Used: GRI (Core Option)

Certifications: ISO 50001:2018 (energy management)

Third-party Assurance: Deloitte GmbH Wirtschaftsprüfungsgesellschaft

UN Sustainable Development Goals

• Not disclosed

Aligned to UN Sustainable Development Goals.

Sustainable Products & Innovation

• Energy-efficient power electronics; UVC-LED lights; high-efficiency multi-junction solar cells.

Awards & Recognition

• Energy Efficiency Award (dena, 2017)

Environmental Metrics

ESG Focus Areas

• Environment and Ecology
• Society and Social Welfare
• Employees and Occupational Health and Safety
• Combating Corruption and Bribery
• Respect for Human Rights

Environmental Achievements

• Reduced electricity consumption by 6.7% to 10,883,534 kWh in 2021 (2020: 11,672,526 kWh), while revenues rose by 59%
• Achieved climate neutrality in 2019
• Compiled a complete climate balance sheet for the first time in 2021
• 56.7% of revenues were EU taxonomy-aligned

Social Achievements

• 90 new employees hired in 2021 (2020: 95), with 23% women (2020: 24%)
• Increased training hours per employee to 13.3 in 2021 (2020: 8.4)
• Donated EUR 50,000 to flood victims in 2021
• Improved CDP rating from D to B and MSCI rating from BBB to A

Governance Achievements

• Improved ESG ratings (CDP and MSCI)
• No incidents of bribery or corruption reported in 2021
• Implemented a company suggestion scheme

Climate Goals & Targets

Environmental Challenges

• Slight increase in overall energy requirements in 2021 due to increased natural gas and heating needs (related to COVID-19 measures and high humidity)
• Increased Scope 3 emissions due to strong revenue growth and increased inventories

Mitigation Strategies

• Implemented various energy-saving projects
• Procured electricity from renewable energies since 2019
• Offset unavoidable CO2 emissions with climate protection projects
• Improved energy management systems and monitoring

Supply Chain Management

Responsible Procurement

• Supplier Handbook defining ethical and legal framework for social and ecological standards
• Compliance with ILO core labor standards
• No tolerance for conflict minerals

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 50001:2018

Third-party Assurance: Deloitte GmbH Wirtschaftsprüfungsgesellschaft

UN Sustainable Development Goals

• No poverty
• Good health and well-being
• Quality education
• Gender equality
• Affordable and clean energy
• Decent work and economic growth
• Industry, innovation and infrastructure
• Responsible consumption and production
• Climate action
• Life on land

SDGs provide orientation for day-to-day work and strategic planning.

Sustainable Products & Innovation

• Equipment for manufacturing energy-efficient power semiconductors (GaN and SiC)
• Equipment for MicroLEDs
• Equipment for laser diodes for data communications
• Equipment for quantum technology
• Equipment for renewable energy (solar cells)

Environmental Metrics

ESG Focus Areas

• Environment and ecology
• Employees, worker safety, health protection
• Respect for human rights
• Society and social affairs
• Combating corruption and bribery

Environmental Achievements

• Increased share of taxonomy-aligned revenues to 58% of total revenues (2021: 57%), reaching EUR 271 million (2021: EUR 243 million).
• Increased taxonomy-aligned operating expenses (OpEx) from EUR 43 million (72%) in 2021 to EUR 45 million (73%) in 2022.
• Almost doubled taxonomy-aligned capital expenditures (CapEx) from EUR 8 million (39%) in 2021 to EUR 14 million (38%) in 2022.
• Climate neutral since 2019.
• Successfully using waste heat for building heating, saving 90% of gas and 10% of electricity consumption.
• Sourcing electricity exclusively from renewable energies at European and US locations since 2019.
• Replaced existing lighting systems with LED technology to further reduce energy consumption.

Social Achievements

• Added more than 230 highly qualified colleagues in 2022.
• Increased workforce diversity with employees from around 50 nations (2021: 42).
• More than doubled learning hours per employee to 32.8 hours (2021: 13.3 hours).
• Donated EUR 50,000 to support war refugees from Ukraine.
• Implemented a company agreement allowing employees to work remotely up to 80% of standard working time.

Governance Achievements

• No events relating to bribery and corruption reported.
• Implemented a management system for conflict minerals, based on OECD Guidelines.
• No significant quality defects identified that materially impacted customer health and safety.
• Increased supplier audits from 19 in 2021 to 32 in 2022.

Climate Goals & Targets

Environmental Challenges

• Increasing the proportion of female employees.
• Maintaining a conflict-free supply chain worldwide.
• Addressing the increasing demand for electricity due to business growth.

Mitigation Strategies

• Various efforts such as appropriate recruiting or communication in social media channels to increase the proportion of female employees.
• Joining the Responsible Minerals Initiative (RMI) to maximize the influence and impact of conflict-free sourcing.
• Implementing various energy-saving projects to mitigate the increase in overall electricity consumption.

Supply Chain Management

Supplier Audits: 32/year

Responsible Procurement

• Supplier manual defining ethical and legal framework for social and ecological standards.
• Requirement for compliance with applicable laws, regulations, and provisions of the supplier manual.
• Requirement for meeting international minimum standards in sustainability.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 50001:2018

Third-party Assurance: KPMG AG Wirtschaftsprüfungsgesellschaft

UN Sustainable Development Goals

• No poverty
• Health and well-being
• Quality education
• Gender equality
• Affordable and clean energy
• Decent work and economic growth
• Industry, innovation and infrastructure
• Sustainable consumption and production
• Measures for climate protection
• Life on land

AIXTRON's activities contribute to these goals through sustainable technologies, employee well-being initiatives, community investment, and responsible supply chain management.

Sustainable Products & Innovation

• Systems for the production of energy-efficient power electronics based on SiC and GaN.
• Systems for the production of Micro LEDs for energy-efficient displays.
• Systems for the production of laser diodes for data communication.

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environment, Social and Governance (ESG)

Environmental Achievements

• Reduced energy consumption by 15% in 2023 compared to 2020 (normalized for the number of systems, employees and laboratory runs).

Social Achievements

• Increased employee count by approximately 200 worldwide, reaching 1,086 employees at year-end; received Supplier Excellence Awards from Texas Instruments and TSMC; rolled out various personnel development initiatives promoting the advancement of female talent, including coaching and mentoring programs and women’s network meetings.
• Increased employee training hours to 32 hours per employee compared to fiscal year 2020.

Governance Achievements

• Full compliance with the recommendations of the German Corporate Governance Code (GCGC 2022), except for one deviation explained; implemented a whistleblower mechanism adapted to the requirements of the German Whistleblower Protection Act (HinSchG); introduced a compliance program for the protection of human rights and the environment in AIXTRON's business area and supply chain, based on the German Supply Chain Due Diligence Act (LkSG).

Climate Goals & Targets

Environmental Challenges

• Challenging conditions in a multi-level supply chain requiring transparency, trust, and reliability between partners; high competition in the search for talented employees; difficult macroeconomic conditions and conditions in the semiconductor industry; volatile US dollar exchange rate.

Mitigation Strategies

• Intensified cooperation and communication along the supply chain to ensure reliable supplier delivery; optimized internal structures and processes to achieve scalability for further growth; enhanced attractiveness as an employer brand through various target group-oriented recruitment channels; applied an average USD/EUR exchange rate in fiscal year 2023.

Supply Chain Management

Responsible Procurement

• Close, cooperative collaboration with suppliers; early involvement of suppliers in new projects; sharing foresight in the supply chain in the medium to long term; strategies to ensure the availability of inventory.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: EU Taxonomy Directive, German Corporate Governance Code (GCGC 2022)

Certifications: ISO 9001:2015

Third-party Assurance: KPMG AG Wirtschaftsprüfungsgesellschaft

Sustainable Products & Innovation

• G10 product family (G10-SiC, G10-AsP, G10-GaN)

Awards & Recognition

• Supplier Excellence Awards from Texas Instruments and TSMC