Environmental | Advanced Energy

Environmental Management

In 2025, we achieved multi-site ISO 14001 certification across our manufacturing operations, with our Thailand site working toward certification for 100% coverage.

Energy and Climate

We aim to reduce our greenhouse gas (GHG) emissions and, where possible, work with customers, suppliers, and other stakeholders to support GHG reduction efforts and supply chain decarbonization.

A key strategy is footprint optimization, including our “15 to 5” manufacturing strategy, intended to consolidate operations and reduce emissions intensity over time. We implement targeted energy efficiency initiatives to reduce electricity consumption and GHG emissions, including upgrading legacy equipment with technologies such as regenerative burn-in ovens that recover waste power and convert it back into usable electricity.

In 2025, Advanced Energy publicly committed to setting science-based GHG reduction targets and seeking validation through the Science Based Targets initiative (SBTi).

2025 GHG EMISSIONS

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.