CORPORATE COMMITMENTS
Our Philosphy
At Advanced Energy, we incorporate ESG responsibility across our business with the same focus and dedication we approach all our initiatives. Our results and ongoing efforts related to ESG are an integral part of our commitment to deliver long-term value to our global stakeholders. This commitment is driven from the highest levels of the Company, including our Chief Executive Officer, executive management team and Board of Directors. We look forward to making a difference in the markets and communities we serve.
In 2022, we launched our ESG Steering Committee. This committee is responsible for shaping our ESG approach and advancing our ESG program. We conduct gap analyses to actively pursue improvements in collaboration with our customers, suppliers and partners. Read more on our ESG brochure.
ENVIRONMENT
- Inventing Energy Efficient Products
- Implementing Energy Efficient Operations
- Reducing Waste
SOCIAL
- Empowering Our People
- Engaging with Our Communities
GOVERNANCE
- Enabling Effective Management
- Enhancing Transparency
CORPORATE COMMITMENTS
Recent Highlights
COMMITMENTS
2022
Advanced Energy launched the ESG Steering Committee in 2022.
The Committee is responsible for ESG approach and advancing our ESG program
A
Advanced Energy received an MSCI ESG Rating of A
(on a scale of AAA-CCC) as of 2023
ENVIRONMENT
98%
Advanced Energy launched power conversion products
for energy-intensive data center computing applications
featuring industry-leading efficiency up to 98%
86%
Total Waste Diversion Rate in our Asia Pacific factories
~35%
From 2014 to 2022, our factories in China and the Philippines
reduced Scope 2 CO2 emissions by 23,941 metric tonnes,
a ~35% reduction from the base year
SOCIAL
~45%
Women comprise almost half of our global workforce
>85%
of employees are proud to work at AE based on 2022 employee survey
0.45
Total Recordable Incident Rate (TRIR) and 0.26 Loss Time Incidence Rate (LTIR)
345
Employees participated in our leadership development program in 2022
GOVERNANCE
>90%
of our board members are independent, non-executive directors
30%
of our Board of Directors are women
4.6
years of average tenure for Board of Directors
2
Women leaders added to Advanced Energy’s Executive Leadership Team in 2022 – first time in our history
ETHICAL PRACTICES
Acting Responsibly
Ethical Business Practices
We commit to the standards of the Responsible Business Alliance (RBA) Code of Conduct. The RBA is the world’s largest industry coalition dedicated to corporate social responsibility in global supply chains.
Code of Ethical Conduct
Advanced Energy’s Code of Ethical Conduct contains principles and guidelines for: conflicts of interest, insider trading, privacy, gratuities, donations, gifts and business courtesies, anti-trust/competition, anti-slavery and anti-fraud.
Whistleblower Hotline
We regularly train employees on ethical business practices and provide a 24-hour hotline to address ethics issues. We do not tolerate unlawful retaliation against any individual who brings a complaint in good faith or participates in an investigation.
Harassment / Discrimination Prevention
We are committed to providing a work environment that is free from harassment or discrimination based on race, color, religion, sex, sexual orientation, gender identity and expression, ethnicity and national origin, age, ancestry, disability, marital status, veteran or military status, genetic information, political affiliation, union membership or any other characteristic protected by law.
Freedom of Expression
Employees are free to participate and express themselves in discussion groups, forums, direct conversations with management and other communication channels without fear of discrimination, reprisal, intimidation or harassment. Our employees are able to take part in community, business, trade, professional, charitable and civic organizations.
Insider Trading Policy
Our Insider Trading Policy aims to prevent insider trading and help company personnel avoid the severe consequences associated with violations of insider trading laws. This policy is also intended to prevent even the appearance of improper conduct on the part of anyone employed by or associated with Advanced Energy.
ETHICAL PRACTICES
Protecting Human Rights
Respecting the human rights of our employees and those involved in our business operations is important to Advanced Energy.
Without exception, as a global company, Advanced Energy does not engage in any form of forced, bonded (including debt bondage) or indentured labor, involuntary prison labor, slavery or trafficking of persons.
Our Code of Conduct, which also applies to our suppliers, specifically prohibits activities involving slave or forced labor, human trafficking and child labor.
We have policies and procedures in place to support this commitment.
- Employee Code of Ethical Conduct that includes anti-slavery and human trafficking provision
- Supplier Code of Conduct and Supplier Business Audit Program dedicated to preventing slavery and human trafficking. AE’s Purchasing terms and conditions require compliance with our Supplier Code of Conduct
- Anonymous reporting system to employees and all members of our supply chain at www.advancedenergy.ethicspoint.com
- Staffing agreements prohibiting provision of resources by third parties that are inconsistent with AE’s policies
- Annual training for all Purchasing, Commodity Management, Human Resources, Supplier Quality, Internal Audit and Legal personnel to raise awareness of modern slavery and human trafficking
ETHICAL PRACTICES
Practicing Responsible Sourcing
Advanced Energy is dedicated to reducing the impact our procurement activities and supply chain have on the planet, whether that impact is on human rights, the environment or any other area of corporate social responsibility.
The mining of conflict minerals supports armed conflict or risks of human rights abuses. Advanced Energy supports the U.S. Securities and Exchange Commission (SEC) rules to implement reporting and disclosure requirements related to “conflict minerals” as directed by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.
We require our suppliers to provide a list of smelters and refiners to ensure that 3TG (Tungsten, Tantalum, Tin and Gold) used in the manufacture of components and products supplied to Advanced Energy do not originate from operations in the conflict region.
