Frontken Berhad Annual Report 2017

20 Frontken Corporation Berhad (651020-T) ANNUAL REPORT 2017 Sustainability Report A. FINANCIAL YEAR (“FY2017”) SUMMARY REPORT FROM THE SUSTAINABILITY COMMITTEE Frontken Group has been providing innovative solutions and services to both the semiconductor and non-semiconductor industry since 1996. As a responsible company, Frontken is committed to ethical and responsible business practices, environmental sustainability development, and the well-being of our employees and the communities in locations which we operate. In the operation of our business, we dedicate and optimize resources to ensure environmental sustainability and to provide positive impact and returns to shareholders, investors and the society to create sustainable value to our stakeholders. Frontken Group is committed to grow profitably and sustaining our business operation in an environmentally and socially responsible manner that preserves the environment and protects the health and safety of workers, customers and neighboring communities. We provide work environments, products, services and solutions that make safe, productive and efficient use of resources as we strive to achieve our vision. We apply innovation and technology to improve the sustainability performance of our products, services, solutions and operations. We believe sustainable progress is made possible by developing better systems that maximize life cycle benefits, while also minimizing the economic, social and environmental costs of ownership, as reflected in our sustainability principles. We will execute our strategy by working to meet our aspirational sustainability goals. These inclusive efforts are the baseline of our sustainable business practices which extends to all our stakeholders. This year is the 20th anniversary of Frontken founding. Frontken Group is now the leader in dedicated semiconductor support services. Over the years we have innovated with our customers, and have driven continued progress in technology with our employees, customers, partners and suppliers. We continue to strengthen these commitments to achieve sustainable operations. We have created a unique corporate culture, core values and principles, embedded into each employee’s dedication to diligence in every task. In FY2017, Frontken Group focused on five ‘’Core Areas for Action on Sustainability’’, these five dimensions of sustainability development are (a) responsible management; (b) responsible innovation and service; (c) responsible green production; (d) responsible workplace; and (e) inclusive society and communities. Based on the material issues we have identified, we have laid out a set of strategies and long term goals in this report as our “Frontken 2025 Vision”. In the long term vision, we aim to benchmark our sustainability development with the GRI Framework and United Nations Sustainable Development Goals by continuing to make efforts in the economic, environmental, and social dimensions of our business, and make a contribution towards resolving environmental and social issues. B. FY2017 ACHIEVEMENT OF SUSTAINABILITY GOALS 1. Responsible Management Frontken views the sustainable development of its management team characters and capabilities as a key part of its corporate social responsibility. We focus on financial prudence, discipline and integrity with strong risk management. We are committed to high standards of corporate governance to sustain growth and performance, and to safeguard stakeholders’ interest and maximize long-term shareholder value. 2. Responsible Innovation and Service Frontken Group has long been the trusted technology partner and service provider to the global semiconductor industry. We are a leader in providing next generations of precision cleaning and coating technology to our customers. We help customers quickly enter into production with our precision cleaning and coating capabilities and provide them with competitive advantage in their products and yield performance. In 2017, we led the advanced precision cleaning and coating in the 10/7nm process technology in Taiwan. We also led the most advanced precision cleaning and coating for the next generation memory wafer process in Singapore. 3. Responsible Green Production Frontken Group has continued to improve its green production method to meet the operational challenges that global warming may bring by making progress through innovation. In FY2017, Our production capacity has doubled while processes continue to grow more complex, but through our efforts, unit production average power usage is 12.10 kWh per part produced; the unit production average water usage is 0.14 cubic meter per part; and unit production average waste produced is 0.00013 ton (0.13kg) per part.