Sustainability

2025 GHG EMISSIONS	2025
Scope 1	2,399 metric tons CO₂e
Scope 2 (location-based)	62,241 metric tons CO₂e
Scope 1 and 2 combined	64,640 metric tons CO₂e
Scope 3	approximately 3.1 million metric tons CO₂e

Combined Scope 1 and 2 emissions increased approximately 11%  — compared to revenue growth of over 20% — reflecting improved emissions efficiency from higher utilization at consolidated sites.

OUR ROLE IN THE ENERGY TRANSITION
We provide high-efficiency AC-DC and DC-DC power supplies, high-voltage systems, and precision power platforms reaching efficiencies of over 98%. These are used in semiconductor manufacturing, data centers, industrial processes, medical technologies, and renewable energy applications. Approximately 94% of our value chain emissions are attributable to electricity consumption during product use by customers, making power efficiency innovation the single largest lever in reducing our environmental impact.

Site-level initiatives include the use of renewable energy technologies, LED upgrades, HVAC improvements, space consolidation, and energy recovery controls on high-use equipment. For example, solar PV systems installed at our Metzingen site in Germany generate approximately 40,000 kWh of renewable energy each year and a  third-party energy assessment at our Malaysia site identified nine projects with estimated annual savings of approximately US$200,000 and 1,800 metric tons CO₂e per year.

WASTE AND CIRCULARITY
We manage hazardous and non-hazardous waste through reduction, reuse, recycling, refurbishment, and recovery programs. 
Our volume manufacturing sites have an average waste landfill diversion rate of 92.5%. Hazardous waste is managed through approved treatment providers subject to vendor qualification and monitoring.

WATER STEWARDSHIP
Total water withdrawals globally across all our activities are approximately 270,000 m³.  Manufacturing processes account for less than 10% of total consumption, with the majority of water use associated with domestic purposes. We evaluated site-level water stress using the World Resources Institute Aqueduct 4.0 database, which found 32% of sites are currently in areas of high or extremely high-water stress. This supports our targeting of water conservation efforts.

BIODIVERSITY AND AIR QUALITY
We have undertaken biodiversity screening of all manufacturing and engineering locations to evaluate proximity to protected areas and to prioritize further risk assessment and, where required, mitigation actions  

We operate abatement systems for fluorinated process gases used during testing of our Remote Plasma Source products, treating effluent streams with dry-bed scrubbers or hot-bed reactors before release.

LEARNING AND DEVELOPMENT

Training is delivered through a combination of online and in-person programs supported by our Learning Management System. Our Leadership Essentials Program, a 10-week development program, had 735 participants by the end of 2025. Our Child-of-Employee Scholarship Program provides one-time awards 
of up to $2,500. In 2025, scholarships were awarded to 28 students across Asia Pacific, North America and Europe.

EMPLOYEE ENGAGEMENT
Our 2025 global engagement survey achieved an 89% participation rate and an 80% engagement score, consistent with benchmarks for high-performing organizations. Results were shared with employees, leaders, and the Board, and used to inform action plans. The survey was structured around our Employee Value Proposition, and based on the results of the survey, we have continued to make key improvements across all areas of our people programs (e.g., compensation, benefits, career development, workplace environment, and overall culture) to continue delivering on our employee experience. 


HEALTH AND SAFETY
Our aim is to eliminate harm. Health and safety governance is led through our global EHS organization in partnership with site leadership teams, with performance reviewed through Monthly Safety Review meetings. Our manufacturing locations are certified to ISO 45001, and key sites undergo third-party EHS compliance audits.

• 2025 Total Recordable Incident Rate (TRIR): 0.14
• 2025 Lost Time Incident Rate (LTIR): 0.08
• More than 2,000 manager-led safety walks completed at volume manufacturing locations
• Hazards identified rose from 6,629 in 2023 to 13,929 in 2025; electrical shock incidents declined from 14 to 10
• Over the past three years, our TRIR has remained substantially below the North American industry benchmark (NAICS 335999) of 1.4. 

Our nine EHS Golden Behaviors, rooted in our Core Values, reinforce awareness of critical health, safety, and environmental risks. Employees are empowered to raise concerns, report hazards, and stop work when unsafe conditions are observed.

HUMAN RIGHTS
We seek to uphold and respect internationally recognized human rights in our operations and throughout our value chain. Our approach is supported by the Code of Ethical Conduct, Supplier Code of Conduct, Slavery and Human Trafficking Statement, Responsible Minerals Sourcing Policy, and our Anti-Bribery and Harassment Prevention Policies.

We align with internationally recognized standards, including the RBA Code of Conduct, the Universal Declaration of Human Rights, ILO Labor Standards, and the OECD Guidelines for Multinational Enterprises. We prohibit all forms of forced, bonded, indentured, and involuntary prison labor, slavery, human trafficking, and child labor, and require age verification during recruitment and screening.

To support awareness of human rights risks, including modern slavery and trafficking, Advanced Energy includes this as a topic in induction and has a dedicated Modern Slavery Awareness and Prevention training course with additional refresher training as required. Suppliers are required to acknowledge and comply with our Supplier Code of Conduct as a condition of doing business, and we maintain a risk-based due diligence program with onboarding assessments, ongoing monitoring, and periodic reviews.

Concerns may be raised through multiple channels, including EthicsPoint, our independent third-party reporting platform, which is available globally and supports anonymous reporting where permitted. We maintain zero tolerance for retaliation against anyone who raises a concern in good faith.

COMMUNITY ENGAGEMENT
We engage with local communities through employee volunteerism, charitable giving, and long-term partnerships focused on education, environmental stewardship, and health and social services. 

•    Hong Kong: Dragon Boat and Mid-Autumn Festival donation programs, including food donations and activities for seniors living alone.
•    Taiwan: partnered with the Give-Circle Platform to donate goods to charitable organizations and rural schools, promoting recycling and sustainability. 
•    The Philippines: river clean-up activities and medical missions for PEZA workers and dependents.
•    Singapore: partnered with the National Kidney Foundation and packed 5,592 medical support kits for dialysis patients. 

We also collaborate with universities on internships, sponsorship of student-led engineering projects, guest lectures, mentoring, and academic events.

Corporate Governance

Advanced Energy is committed to strong corporate governance, ethical business conduct, and accountability to shareholders. We regularly assess our governance practices against evolving regulatory requirements, stakeholder feedback, and leading practices.

The Board of Directors oversees our business, strategy, risk management, and compliance programs, including strategic planning, internal controls, and public disclosures. We maintain separate Board Chair and CEO roles, a supermajority of independent directors with the CEO as the only insider director, an average Board tenure of approximately eight years, and female representation of 30% of Board members.

ESG OVERSIGHT
Oversight of sustainability matters is integrated into our governance structure:

The Executive Vice President and General Counsel maintains accountability for ESG-related matters, while the Executive Vice President and Chief Operations Officer oversees environmental initiatives and related operational programs.

1. Be honest.
2. Treat others with respect.
3. Comply with the laws, regulations, AE policies, procedures, and internal controls that are applicable to your role.
4. Complete training assignments in a timely manner.
5. Speak up and raise a concern if you encounter a situation that.

The Code provides guidance across a wide range of risk areas, including conflicts of interest, insider trading, anticorruption, antitrust and competition, trade compliance, government contracting, anti-slavery and human trafficking, privacy, and raising concerns. It is available in several languages

COMPLIANCE PROGRAMS AND TRAINING
We maintain a comprehensive compliance program supporting ethical conduct, regulatory compliance, and risk management, backed by mandatory training, policy communication, and ongoing oversight. We have a 100% completion rate for directors and above on the Global Policy Acknowledgement, and a 95% or greater completion rate for other Legal Compliance training. We are developing custom, multilingual compliance training content aligned with our risk profile and global workforce.

RAISING CONCERNS
Employees may seek guidance or report actual or perceived violations through management, Human Resources, Legal Compliance, the Company’s General Counsel, or by contacting legalcompliance@aei.com. We also maintain a 24-hour whistleblower hotline via AdvancedEnergy.ethicspoint.com, a confidential third-party platform available globally. Reports may be submitted anonymously, and retaliation is not tolerated.

RISK MANAGEMENT AND BUSINESS RESILIENCY
We maintain an enterprise risk management framework to identify, assess, and manage risks that may impact strategy, operations, financial performance, or reputation. Our Business Resilience Planning management system is aligned with ISO 22301 and includes an enterprise-wide Business Continuity Plan, Crisis Management Plan, Disaster Recovery Plan, and site-specific Emergency Response Plans.

CYBERSECURITY
Our cybersecurity program is periodically evaluated by independent assessors against the NIST Cybersecurity Framework, consistently placing at or above industry benchmarks with improving maturity ratings year over year. We maintain incident response and disaster recovery plans tested through tabletop exercises, including an annual corporate cyber incident response exercise facilitated by an external third party.
We have established governance for the responsible and secure adoption of artificial intelligence, including acceptable-use standards, review of AI tools prior to deployment, and controls designed to protect company and customer data. All employees receive cybersecurity training during onboarding and annually, supported by regular phishing simulations and monthly security communications.

DATA PRIVACY
We maintain a data privacy program designed to comply with applicable privacy laws and regulations, including the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act/California Privacy Rights Act (CCPA/CPRA).

Our Policies
Advanced Energy’s policies set the standards for how we operate, how we treat people, and how we expect our partners and suppliers to conduct business. The policies below are publicly available.

Policy	Description
Integrity at Our Core: Code of Ethical Conduct	Our Code of Ethical Conduct, applying to all employees, officers, Board members, and contractors. Available in several languages via a dropdown language selector.
Supplier Code of Conduct	Aligned with and based on the RBA Code of Conduct. Suppliers are required to acknowledge and comply as a condition of doing business. Include a reference to AE’s Supplier Portal.
Responsible Minerals Sourcing Policy	Our commitment to due diligence on direct suppliers of conflict minerals, aligned with U.S. regulatory requirements.
Environmental, Health & Safety (EHS) Policy	Our commitment to safe people, safe places, and safe products across global operations.
Quality Policy	Reference and link to the existing Corporate Quality page.
Privacy Policy	Our data privacy program, designed to meet or exceed GDPR and CCPA/CPRA requirements.
Terms and Conditions
Terms of Use

Compliance Documents and Reports
Advanced Energy publishes the reports, certifications, and disclosures below to support transparency with our customers, investors, suppliers, and regulators. If you are completing a supplier assessment or require documentation not listed here, please contact us.

Policy	Description
2026 Corporate Sustainability Report and 2025 Sustainability Databook, plus prior-year reports and ESG Brochures
CDP and CSA submissions
EEO-1 Form, UK Tax Requirements, Transparency in Coverage, Terms and Conditions, Terms of Use
SEC Reports — 10-K, Proxy Statement
Conflict Minerals Disclosures on Form SD	pdf linked on website
ISO Accreditations and Certificates	ISO 14001, 45001, 9001, 13485, 17025, and CTPAT certification – linked to Quality Page
REACH Declaration	The EU Registration, Evaluation, Authorization and Restriction of Chemicals (REACH) Regulation (EC) No 1907/2006 entered into force on June 1, 2007, and will be fully implemented over an 11-year period. It seeks to manage the risks posed by chemicals and provide appropriate safety information to their users. AE supports the REACH objective of ensuring “protection of human health and the environment as well as the free movement of [goods]” and works with our supply chain to meet our obligations under the regulation. REACH treats articles (objects, such as electronic equipment) differently than chemicals and chemical mixtures. AE manufactures articles with no intended release of REACH-regulated substances. Additionally, no regulated substance in articles produced or imported by AE exceeds the regulatory threshold of one tonne per year. As such, AE’s primary obligation under REACH is communication of information about regulated substances in our products to users, in accordance with Article 33 of the regulation.
RoHS and WEEE documentation
Safety Data Sheets (SDSs)