AT&S Austria Technologie & Systemtechnik : Sustainability Report 2023/24

Non-Financial Report

2023/24

CONNECTING

TECHNOLOGY

TODAY.

TOMORROW. TO FUTURE.

NON-FINANCIAL REPORT	ADVANCED TECHNOLOGIES
2023/24	& SOLUTIONS

NON-FINANCIAL REPORT

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• 3 Statement of the Management Board
• 7 Sustainability Management

11 Sustainability Strategy

1. Reporting pursuant to Art. 8 of the EU Taxonomy

1. Environmental

1. Social

1. Governance

1. KPIs EU Taxonomy

1. GRI Content Index

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NON-FINANCIAL REPORT	ADVANCED TECHNOLOGIES
2023/24	& SOLUTIONS

NON-FINANCIAL REPORT

STATEMENT OF THE MANAGEMENT BOARD

The financial year 2023/24 can be described as a highly challenging year. As in the previous year, we navigated through turbulent economic times. The geopolitical situation, inflation, rising prices and the challenges within the supply chain required intensive attention from us and will continue to do so. The current weakness of the market will stay with us for some time to come; however, it will not change anything about the future perspectives of our markets and our growth strategy.

Regarding ESG (short for Environmental, Social, Governance) topics, the year was paved with numerous new regulations. In June 2023, four additional environmental goals were published as part of the EU Taxonomy Regulation, and the intensive discussion of the Frequently Asked Questions (FAQs) published in December 2022 continued. Therefore, no EU Taxonomy reporting year is like another, since new requirements always call for adjusted, extended reporting each time.

In the final months of the past financial year in particular, a decision in favour of, or against, the EU Corporate Sustainability Due Diligence Directive (CSDDD) was imminent. The directive adopted was significantly toned down compared with the latest proposals regarding the companies affected, and risk assessment was also downgraded; three central aspects must be taken into account:

1. Risk-basedapproach: Companies do not have to address all risks identified at the same time but can concentrate on the most important ones.
2. "Duty of effort": Companies must show that they undertake reasonable efforts to meet their due diligence obligations in terms of human rights.
3. Risks for people and the company: With the establishment of a human rights risk management system, a company not only protects the rights of those potentially affected, but also itself against further business-related risks. It gets to know its supply chains and business partners better and becomes more resilient.

In terms of sustainable supply chain management, we focus on strong partnerships along the entire value chain in addition to our established processes and indicators. Nevertheless, the Corporate Sustainability Due Diligence Directive (CSDDD) will confront us with new challenges.

Since 1 April 2023, the new structure of AT&S Group has comprised the two new business segments Electronics Solutions and Microelectronics. At the same time, the "Corporate ESG" function was created, which is assigned to the newly established function of the Chief Technology Officer (CTO) as a member of the Management Board. ESG now covers all topics relevant to sustainability, for example decarbonisation, occupational safety, or the management of measures for a more sustainable supply chain.

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NON-FINANCIAL REPORT	ADVANCED TECHNOLOGIES
2023/24	& SOLUTIONS

In the past year, we were pleased to receive many awards again, including the B-Ranking in the CDP Score Report 2023, for both "Climate Change" and "Water Security", so that we once again exceeded the average of the electrical and electronic equipment sector. In addition, we repeatedly defended our outstanding Gold status in the EcoVadis ranking (for details please visit our website).

We are committed to established global frameworks such as the Sustainable Development Goals of the United Nations (SDGs), the OECD Guidelines for Multinational Enterprises, the UN Guiding Principles on Business and Human Rights, the International Labour Organization (ILO), the UN Global Compact, the Responsible Business Alliance (RBA) and the Responsible Minerals Initiative (RMI).

WHAT WE STAND FOR

RBA

(Responsible Business Alliance)

RMI

(Responsible Minerals Initiative)

With this non-financial report for the financial year 2023/24, we are also concluding the final sustainability report pursuant to the Austrian Sustainability and Diversity Improvement Act (NaDiVeG). Starting from 2024/25, this part of the management report will be prepared in accordance with the CSRD (Corporate Sustainability Reporting Directive). Under the motto "Let's do it", our roadmap features, in addition to our reporting activities, many new sustainability activities which we will report on in the coming year.

ILO

(International Labour Organization)

SDGs

(Sustainable Development Goals)

OECD Guidelines

for multinational enterprises

UNGC

(United Nations Global Compact)

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NON-FINANCIAL REPORT	ADVANCED TECHNOLOGIES
2023/24	& SOLUTIONS

OUR GOALS

80 %

Renewable

energies

by 2025

38 %

Scope 1 & 2

Absolute reduction

of Scope 1 & 2 emissions

by 38% by 2030/31

Decarbonisation

Of all production sites by 2030

(Scope 1 emissions)

48 %

Scope 3

Reduction of relevant Scope 3 emissions by 48% per EUR GVA by 2030/31

Life cycle assessment

at product level

100% RMI-compliant

supply chain

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NON-FINANCIAL REPORT	ADVANCED TECHNOLOGIES
2023/24	& SOLUTIONS

WHAT WE ARE PROUD OF

73.9 %

Renewable

energies

Code of Conduct

signed by 100% of

key suppliers

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Awards and prizes

Science-based

emission targets

ESG Policy

published

B

B Rating

CDP "Climate Change" and

"Water Security"

Recycling

of 200 kg of

in-house copper per day

Cooperation

with educational institutions

72

Nationalities

in the workforce

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NON-FINANCIAL REPORT	ADVANCED TECHNOLOGIES
2023/24	& SOLUTIONS

SUSTAINABILITY MANAGEMENT

About this report

With this report, AT&S complies with the reporting obligation pursuant to the Austrian Sustainability and Diversity Improvement Act (NaDiVeG, section 243b and section 267a of the Austrian Commercial Code, UGB) for the Group as a whole and for Austria Technologie und Systemtechnik Aktiengesellschaft (in the following referred to as "the company"). This report has been prepared in partial compliance with the standards of the Global Reporting Initiative (GRI). Details are provided in the GRI content index at the end of the non-financial report. Our objective is to give all stakeholders of the AT&S Group transparent access to all ESG-relevant information and an overview of the main activities.

The introduction of a new Group-wide organisational structure in the financial year 2023/24 led to a change in the segment structure. With effect from 1 April 2023, the AT&S Group has structured its operating activities in three technology-based segments: Electronics Solutions, Microelectronics and Others. The Electronics Solutions segment comprises the areas of printed circuit boards and will also increasingly cover the modules and embedding business through the development of high-tech solutions. The Microelectronics segment focuses on the production of IC substrates for PCs and servers.

The corresponding comparative figures of the previous year were adjusted accordingly to ensure comparability and a transparent presentation of the development of the key figures.

Anchoring sustainability

The Corporate ESG function was created in the financial year 2023/24 as part of the new Group-wide organisational structure. As digitalisation, technology and innovation are key factors for a more sustainable future, the ESG department has been assigned to the CTO. ESG now combines all environmental topics such as energy and decarbonisation, circular economy, water and waste as well as occupational health and safety, employees and the management of measures for a more sustainable supply chain under one umbrella. The core responsibilities of the ESG team include the (further) develop­ ment of the AT&S sustainability strategy, the coordination of the sustainability agenda as well as internal and external communication. These are coordinated with the Management Board several times during the year as needed, and on a quarterly basis with representatives of the Management Board as well as the segments and relevant corporate functions as part of the ESG Steering Committee.

In addition, global networks within the AT&S Group were established on environmental matters, occupational health and safety as well as product responsibility. Others will follow.

Responsible value creation

AT&S advocates responsible manufacturing of products along the entire value chain. To this end, we engage in intensive collaboration and strong partnerships with suppliers and customers. Together, we drive technological developments.

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NON-FINANCIAL REPORT	ADVANCED TECHNOLOGIES
2023/24	& SOLUTIONS

VALUE CREATION PROCESS

Raw materials and equipment

Transport

End of life

AT&S

Production

Utilisation phase
					Transport

Customers

direct sphere of influence indirect sphere of influence

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NON-FINANCIAL REPORT	ADVANCED TECHNOLOGIES
2023/24	& SOLUTIONS

Purchasing in the AT&S Group is centralised or decentralised, depending on strategic importance. In addition to on-time procurement of basic materials such as gold, copper, laminates or process chemicals which meet our quality and sustainability standards, this also includes energy and the required infrastructure.

Proper storage of all materials ensures quality, durability and properties. The production of both high-tech printed circuit boards and IC substrates comprises multiple wet chemical processes that require great amounts of energy and water. We continuously work on minimising the quantities of all raw materials based on efficiency measures, process improvements and technology innovations.

The aim is to avoid waste to the greatest extent possible through efficient processes, trained personnel, the right mindset and by closing cycles. Depending on the type of waste and its classification, waste material is transferred to waste disposal companies and recycled or incinerated, and a small residual share is disposed of. Packaged appropriately, AT&S products are shipped to customers. Unfortunately, AT&S

has little influence on the disposal of its products at the end of their life cycle. However, we call upon the responsibility of end users to dispose of devices properly. Even though our possibilities to exercise influence on upstream and downstream processes are limited, we consider it our duty to extend the AT&S standards as far as possible in all ESG areas.

AT&S focuses on intensive cooperation and joint innovation activities with all partners along the supply chain. As a result, smart products, which are made observing human rights and in compliance with social standards as well as using and processing all raw material efficiently, create added value for all customers.

High standards in all areas

High standards in all areas are a fundamental requirement for sustainability management to work. The following table lists certifications and standards in the areas of quality, envi- ronment, occupational health and safety and data security. They reflect the general orientation of AT&S as well as the needs of our customers.

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NON-FINANCIAL REPORT	ADVANCED TECHNOLOGIES
2023/24	& SOLUTIONS

STANDARDS AND CERTIFICATES

Certification	Description	Leoben	Fehring	Nanjangud	Ansan	Shanghai Chongqing
ISO 14001:2015	Global standard for environmental
	management systems to optimise
	processes, reduce costs and minimise risks
ISO 45001:2018	Standard for the management of
	occupational health and safety to minimise
	risks and increase productivity
ISO 9001:2015	Certification of quality management systems
	to prove high quality standards of products
IATF 16949:2016	Globally recognised standard in automotive
	industry
ISO/IEC 27001:2017	International standard for information
	security
DIN EN ISO 50001:2018	International standard for energy
	management to increase energy efficiency
DS/EN ISO 13485:2016	International quality standard for the design
	and production of medical devices
EN 9100:2018	European quality standard for the
	aerospace industry
UL Listing	Standard to ensure electrical and
	mechanical safety of electronic components
Sony Green Partner	"Green Partner Environmental Quality
Certificate	Approval System" for cross-company
	cooperation for the manufacturing of
	sustainable products
AEO Certificate	Authorised Economic Operator of the
	European Union
IECQ QC 080000:2017	International Technical Specification for
	Process Management of Hazardous
	Substances
NADCAP Accreditation	Accreditation for a uniform quality standard
	in the aerospace industry to harmonise
	production and audit processes of aircraft
	components
ANSI/ESD S2 0.20-2014	Electrostatic discharge standard
IPC-QL-653 Standard	Certification of Facilities that Inspect/Test
	Printed Boards, Components and Materials

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