Frontken Berhad Annual Report 2019

21 Frontken Corporation Berhad (651020-T) ANNUAL REPORT 2019 Sustainability Report (cont’d) We continuously improve and equip our engineers and employees to ensure they are able to continuously contribute to our sustainability development vision. For example, every engineer and employee responsibilities are included in their personal objectives and incentives, and is linked to our business operational requirements: (a) Innovative Value Creation through product and service portfolios – designed to bring tangible benefits to our customers with competitive advantage and deliver positive social and environmental impact for sustainability development. (b) Maximizing Resource Productivity through operations – designed to optimize all resources productivity in our production, operations and supply chain including critical materials used, eliminating waste and reducing variable cost. So as to makes us more competitive and sustainable. Some of our highlights of our achievements are summarised as follows, with more details within our Frontken Group Sustainability Report FY2019, which the Group measure and report its sustainability performance. FY2019 Achievement of Sustainability Goals I. 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. Our guiding principles are summarised as follows: (a) Our management activities and practices embrace triple bottom line optimization which include positive triple bottom line that protects, creates, and sustains social, environmental, and economic business value. (b) Our management decisions and practices embrace risk management, ethical decision making and create moral excellence in both process and outcome. II. Responsible Innovation and Service Frontken 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 2019, we led the advanced precision cleaning and coating in the 5nm process technology in Taiwan. We also led the most advanced precision cleaning and coating for the next generation memory wafer process in Singapore. In FY2019, our R&D team researched and developed more environmentally friendly methods for our coating and cleaning process, we improved our production process flow and productivity by 16% and reduced the manpower by 1.3 hours per kit, and most importantly we replace the dangerous steps and processes that are not conducive to the physical and mental health of employees and the environment. III. 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 FY2019, our production capacity has increased while processes continue to grow more complex, but through our efforts, unit production average power usage is 11.20 kWh per part produced; the unit production average water usage is 0.12 cubic meter per part; and unit production average waste produced is 0.00037 ton (0.37kg) per part. In FY2019, we further optimized our green power to 384,128 KW (an increase from FY2018 of 268,242 KW), directly supporting renewable energy. We continue to adhere to strict waste classification at the source, we have introduced new methods to perform internal recycling of waste water, enabling them to become reusable resources and lowering reliance on outsourcing. In FY2019, we implemented two major waste reduction projects which have resulted a total benefit of 54,443 ton of water saved and 54 ton of waste recycled. As a result of our implementation waste recycling projects, the total water consumption was further reduced in 2019 by 5.8%. We are committed to complying with or exceeding all relevant regulatory requirements, to prevention of pollution and to continual improvement in the environmental, health and safety performance of its operations, processes and products.