ASTI HOLDINGS LIMITED SUSTAINABILITY REPORT 2023
Content Page
1. | Board Statement | 3 | |
2. | About this Report | 4 | |
2.1. | Reporting Scope and Period | 4 | |
2.2. | Framework | 4 | |
2.3. | Feedback | 4 | |
3. | Sustainability Governance | 5 | |
3.1. | Sustainability Strategy | 5 | |
3.2. | Sustainability Governance Structure | 5 | |
3.3 | Stakeholder Engagement | 5 | |
4. | Materiality Assessment | 7 | |
4.1. | Overview of Material Factors | 7 | |
4.2. | Environmental | 9 | |
4.2.1. | Energy and Emissions | 9 | |
4.3. | Economic | 10 | |
4.3.1. | Economic Performance | 10 | |
4.4. | Social | 11 | |
4.4.1. | Talent Attraction and Retention | 11 | |
4.4.2. | Diversity and Equal Opportunities | 12 | |
4.4.3. | Training and Education | 13 | |
4.4.4. | Occupational Health and Safety | 14 | |
4.4.5. | Customer Health and Safety | 15 | |
4.4.6. | Supplier Assessment | 15 | |
4.4.7. | Compliance with Laws and Regulations | 16 | |
4.4.8. | Environmental Compliance | 16 | |
4.4.9. | Cyber Security | 17 | |
4.5. | Governance | 17 | |
4.5.1. | Anti-corruption | 17 | |
4.5.2. | Corporate Governance | 18 | |
5. | TCFD Report | 18 | |
5.1. | Governance | 18 | |
5.2. | Strategy | 19 | |
5.3. | Climate-related Risks and Opportunities | 19 | |
5.4. | Risk Management | 20 | |
5.5. | Metrics and Targets | 20 | |
6. | GRI Content Index | 21 | |
7. | TCFD Content Index | 24 |
1. Board Statement
The current Board of Directors as at the date of this report was reconstituted on 16 January 2024. Accordingly, none of the current directors were involved in any of the sustainability and environment, social and governance ("ESG") matters in the business and strategy of ASTI Holdings Limited (the "Company" or "ASTI", and together with its subsidiaries, the "Group") and its subsidiaries in the course of the financial year ended 31 December 2023 ("FY2023"), save for the review of this report prepared with the assistance of Baker Tilly Singapore. Sustainability and ESG matters for FY2023, including the scope, focus and subject matters of this report, were considered and determined under the supervision of the previous Board of Directors ("Board"). Further, as set out in its announcement dated 24 January 2024, the Company is in the process of reviewing the corporate and business dealings and transactions of the Group under the previous Board of Directors, and there may be a possibility that findings from such review might not be consistent with the contents of this report.
The Company's seventh (7th) sustainability report for FY2023 ("Report") is subject to the disclaimer above. Reference to the Board refers to the previous Board of Directors who was in place in FY2023.
In FY2023, we continued to face challenges posed by political tensions, inflation, escalating interest rates, rising business costs and also the ongoing threat - climate change. We are conscious of our responsibilities as a corporate citizen and recognise the importance of our contribution towards climate and the environment we operate in.
The Board oversees the sustainability performance of ASTI, with support from the Sustainability Steering Committee ("SSC"). Sustainability related matters are considered by the Board as it reviews the strategic plans for ASTI in the longer term.
Our sustainability strategy is headed by our SSC and supported by the Sustainability Task Force ("STF"). The SSC provides direction coupled with an effective sustainability governance framework to identify, assess, and manage the ESG issues that are important to us and our stakeholders.
We endeavour to consider sustainability in all our strategic decisions and will continue to engage our stakeholders and monitor the ESG factors and economic performance (collectively "Material Factors") that are material to the continuity of our business. We seek your support as we continue this sustainable journey to pivot our business and emerge stronger.
This report details the efforts and performances in meeting the sustainability goals and targets during FY2023. The report details our approach, practices, and performance around the Material Factors that have identified.
3 | Sustainability Report FY2023
2. About this Report
2.1. Reporting Scope and Period
This Report, published annually, covers the Company's policies, practices, initiatives, performance, and goals in relation to Material Factors for the period of 1 January to 31 December 2023 and includes data and information from said period relating to ASTI, its subsidiaries and our services and products.
Our operations are located in Southeast Asia, Greater China, the United States of America, and the United Kingdom. As at the date of this report, Telford Group ("Telford") continues to have the highest impact on sustainability amongst ASTI other businesses.
Save for the information presented in Section 4.5 Governance, all data and information reported in this Report pertain only to the Telford business in Philippines as the majority of Telford operations are based in the Philippines ("Telford Philippines"). Disclosures under Section 4.5 Governance on anti-corruption and corporate governance matters relate to the entire Group and are subject to the disclosures found in the Board Statement on Page 3 of this report.
Telford Philippines is 100% fully owned subsidiary of ASTI Holdings Limited with 1,931 employees as at 31 December 2023. The financial figures presented in this report is based on unaudited financial results of Telford Philippines. The operations in Telford Philippines accounted to approximately 54% of the Group's revenue. Prior year statistics of Telford Philippines operations are included in this Report for comparison. We will consider to include other entities in the subsequent reporting period.
2.2. Framework
This Report is written in compliance with the requirements of SGX-ST Listing Rules 711A and 711B and has been prepared with reference to the Global Reporting Initiative ("GRI") Standards 2021. Further details regarding the respective GRI Standards disclosures selected can be found in the GRI Content Index provided at the end of this report.
Additionally, we adopt a phased approach as we continue our efforts in managing climate-related risks. This report includes ASTI's climate-related disclosures according to the recommendation of the Task Force on Climate-related Financial Disclosures ("TCFD") based on the efforts to date. Further details regarding the alignment of ASTI's climate-related disclosures with the respective TCFD recommendations can be found in the TCFD Content Index provided at the end of this report.
The GRI and TCFD frameworks have been selected as these are two of its internationally recognised sustainability reporting standards. The use of GRI and TCFD frameworks ensures comparability of our report with industry peers.
We have reviewed SGX Core ESG Metrics and included these metrics relating to the material topics identified wherever relevant.
2.3. Feedback
For any enquires, comments or feedback regarding both our sustainability performance and report, please send them to enquiries@astigp.com.
4 | Sustainability Report FY2023
3. Sustainability Governance
3.1. Sustainability Strategy
The Board and Management recognise the importance and the growing expectations on sustainability and strive to consider sustainability in the strategic decisions we make as well as the day-to-day operations of the business amidst the challenges that we face.
3.2. Sustainability Governance Structure
Board of Directors (the "Board")
The Board oversees the sustainability performance of ASTI, with support from the Sustainability Steering Committee ("SSC"). Sustainability related matters are considered by the Board as it reviews the strategic plans for ASTI in the longer term.
Sustainability Steering Committee ("SSC")
Our sustainability strategy is headed by our Sustainability Steering Committee ("SSC"). The SSC provides strong direction coupled with an effective sustainability governance framework to identify, assess, and manage the ESG issues that are important to us and our stakeholders.
The SSC is led by the CEO supported by senior management of ASTI and Telford. They provide advice and assistance to the Board in ensuring that policies and procedures related to ESG issues are aligned with ASTI's business strategy.
Sustainability Task Force ("STF")
The SSC is supported by the STF, which is responsible for driving sustainability initiatives and programmes across Telford. STF comprises of management personnel involved in various divisions including Finance and Information Technology.
3.3. Stakeholder Engagement
We strongly believe that stakeholders are an integral part of our sustainability efforts, as such; it is of utmost importance that we engage with our stakeholders to gain valuable insights and understand the sustainability issues that they are most concerned with, helping to shape our sustainability strategy and grow our business sustainably. Our stakeholders include individuals or groups that have interests that are affected or could be affected by our operations.
5 | Sustainability Report FY2023
Our approach to stakeholder engagement is as follows:
Key | Key Topics of Concern | Mode of | Frequency of Engagement | |
Stakeholders | ||||
Engagement | ||||
Investors and | | Financial | Media releases | Ad-hoc |
Shareholders | performance | SGX's | Ad-hoc | |
| Business | announcements | ||
performance and | Annual general | |||
outlook | meeting ("AGM") for | Annually | ||
| Corporate | Shareholders | ||
Governance | Annual report | Annually | ||
| Compliance with | Circulars | Ad-hoc | |
laws and regulations | Sustainability report | Annually | ||
Employees | | Career development | Company handbook | Employees are briefed on |
| Employee | the handbook during on | ||
engagement | boarding. Softcopy of | |||
| Staff bonding | handbook is available on a | ||
| Health and safety | server for employees when | ||
| Talent attraction and | requested. An | ||
retention | acknowledgement form is | |||
| Training and | signed on the day the | ||
education | employee received the | |||
| Diversity and equal | handbook. | ||
opportunities | New employee | First week of work | ||
orientation | ||||
Training | Employees are given an | |||
average of 36 training hours | ||||
per year depending on job | ||||
requirements | ||||
Whistle blowing | Ad-hoc | |||
policy | ||||
Diversity and equal | Employees of different age | |||
opportunities | groups and genders are | |||
employed. | ||||
Performance | The management performs | |||
evaluation | yearly staff evaluations | |||
Customers | | Customer | On premise support | Daily, as and when required |
satisfaction | and feedback | |||
| Quality of facilities | Customer | Surveys conducted for | |
and services | satisfaction survey | feedback throughout the | ||
| Health and safety | year | ||
impact of product | ||||
Suppliers | | Ability to make | Supplier selection | Prior to supplier |
prompt payments | process | selection | ||
| Business | Supplier assessment | Annually | |
performance and | Meeting with | Annually | ||
outlook | ||||
| Fair selection process | suppliers to discuss | ||
better ways of | ||||
working |
6 | Sustainability Report FY2023
4. Materiality Assessment
Annually, the Board conducts an exercise together with the SSC, to review the relevance of ASTI's Material Factors to identify any shift in priorities among stakeholders and examine any emerging areas of concern. In determining the Material Factors, we referenced GRI's guidance and undertook the following four-step process:
The Material Factors reported in FY2023 continue to reflect our business directions and remain our focus for our sustainability journey. We have reviewed SGX Core ESG metrics and included the metrics relating to the material topics identified wherever relevant.
We will continue to assess these Material Factors on regular basis to ensure their relevance and importance to our business.
4.1. Overview of Material Factors
The table below shows the corresponding topic specific GRI standards and relevant United Nations Sustainable Development Goals ("UN SDGs") for each Material Factor identified.
Material Factors | Relevant Topic-specific GRI | Relevant UN SDGs |
Standards |
Environmental
Energy and Emissions | GRI 302: Energy 2016 |
GRI 305: Emissions 2016 | |
Economic
Economic Performance | GRI 201: Economic |
Performance 2016 | |
7 | Sustainability Report FY2023
Material Factors
Talent Attraction and
Retention
Training and Education
Occupational Health and Safety
Customer Health and
Safety
Social | |
Supplier Assessment | |
Compliance with Laws | |
and Regulations | |
Cyber Security | |
Diversity and Equal | |
Governance | Opportunities |
Anti-corruption | |
Corporate Governance |
Relevant Topic-specific GRI | Relevant UN SDGs |
Standards | |
GRI 102: General Disclosure | |
2016 | |
GRI 401: Employment 2016 | |
GRI 404: Training and | |
Education 2016 | |
GRI 403: Occupational Health | |
and Safety 2018 |
GRI 416: Customer Health and
Safety 2016
GRI 414: Supplier Social
Assessment 2016
GRI 2-27: Compliance with laws and regulations
.
GRI 418: Customer Privacy 2016
GRI 102: General Disclosures 2016
GRI 405: Diversity and Equal Opportunity 2016
GRI 205: Anti-corruption 2016
8 | Sustainability Report FY2023
4.2. Environmental
4.2.1. Energy and Emissions
Management Approach
The majority of greenhouse gas ("GHG") emissions within our operation arise from the combustion of petrol and diesel fuel (Scope 1 emissions) and electricity usage in our manufacturing process (Scope 2 emissions).
Initiatives taken to reduce energy consumption and GHG emissions in our operations include:
- Canteen closure during non-break hours; and
- Consolidation of office and production area to reduce power consumption.
ASTI places great emphasis on improving energy and emissions performance through energy conservation initiatives. At Telford Philippines, electricity consumption is closely monitored monthly to ensure maximum efficiency. In addition, training with reference to the Energy Efficiency and Conservation Act of Philippines is conducted annually and for all new joiners.
Despite our efforts to minimise energy consumption, we observed an increase in consumption in FY2023 notwithstanding the decrease in turnover of Telford Philippines due to the replanning of floor area and office spaces, including purchase of facilities equipment to support new product line. Moving forward, we will explore alternative solutions, such as use of renewable energy sources, to reduce our carbon footprint.
Table 1: Energy and Emission data at Telford Philippines for FY2022 and FY2023.
FY2022 | FY2023 | % change | ||
Energy consumption | ||||
| Diesel consumption (litre) | 6,174 | 7,831 | 27% |
| Electricity consumption (kWh) | 6,147,627 | 8,487,155 | 38% |
Energy consumption intensity | ||||
Diesel consumption intensity (litre/ m2 floor area) | 0.53 | 0.68 | 27% | |
| Electricity consumption intensity (kWh/ m2 floor area) | 532 | 734 | 38% |
GHG emissions | ||||
Scope 1 emissions1 (tonnes CO2e) | 17 | 21 | 27% | |
Scope 2 emissions2 (tonnes CO2e) | 4,027 | 5,560 | 38% | |
Total GHG emissions (tonnes CO2e) | 4,044 | 5,581 | 38% | |
GHG emissions intensity (tonnes CO2e/ m2 floor area) | 0.35 | 0.48 | 38% |
- GHG emissions from the consumption of diesel fuel (Scope 1 emissions) are calculated based on the Intergovernmental Panel on Climate Change Guidelines for National Greenhouse Gas Inventories.
2 GHG emissions from electricity purchased by the Company (Scope 2 emissions) are calculated based on the latest emissions factor published by the Department of Energy Philippines.
9 | Sustainability Report FY2023
Targets and performance | |||||||||
Target for FY2023 | Performance in FY2023 | ||||||||
We will continue to explore energy | Target was not met in FY2023 due to replanning of | ||||||||
reduction initiatives and endeavour to | factory and office space, including purchase of | ||||||||
maintain energy and GHG intensity within | facilities equipment to support new product line, | ||||||||
10% of FY2023's levels as we continue to | which increased energy consumption. The | ||||||||
expand | our | operations | in | Telford | management is looking into tapping into | ||||
Philippines. | alternative renewable energy sources. | ||||||||
Short-term Targets | Medium-term Targets | Long-term Targets | |||||||
(in 1-2 years) | (by 2030) | (by 2050) | |||||||
Reduce reliance on non- | | Reduce | GHG | emission | Achieve | net | zero | ||
renewable | and | high | levels | and | emission | emissions. | |||
GHG | emission energy | intensities by | 30% from | ||||||
sources. | FY2023 baseline. | ||||||||
Perform | Scope | 3 | | Track Scope 3 emissions. | |||||
assessment. |
4.3. Economic
4.3.1. Economic Performance
For the full year ended 31 December 2023, a revenue of $20.5 million (FY2022: $24.7 million) was recorded; a decrease of $4.2 million (17%) from the previous corresponding year ended 31 December 2022 mainly due to a decline in revenue generated in FY2023 compared to the last financial year due to downturn of the semiconductor industry.
It is our belief that in order to deliver value for all our stakeholders, particularly our shareholders, we have to focus on achieving a strong financial position. We will continue to re-evaluate our business and to build resilience throughout our business operations for long-term sustainable growth.
The distribution of economic value generated in FY2023 is as follows:
Year | FY2022 | FY2023 | |
S$ 'million | S$ 'million | ||
Economic value generated (Revenue) | 24.7 | 20.5 | |
Operating costs | (9.3) | (8.9) | |
Economic value | Employee wages and benefits | (10.5) | (10.4) |
distributed | Payments to providers of capital | (0.2) | (0.7) |
Payments to governments | (0.6) | (0.2) | |
Economic value retained | 4.0 | 0.3 |
The above figures are based on unaudited figures of Telford Philippines. The audited financial performance of the Group for FY2023 will be announced by 31 July 2024 as the Company has been granted an extension of time by the Singapore Exchange Securities Trading Limited (the "SGX-ST"). Please refer to the Company's announcement dated 12 March 2024 for details.
Targets and performance
Perpetual target
We will strive to increase the economic performance of the entity to pre-COVID levels in the subsequent years.
Performance in FY2023
Economic value generated in FY2023 did not meet pre-COVID levels in FY2023 because of the downturn of the semiconductor industry that affects the revenue generated in Telford Philippines.
10 | Sustainability Report
FY2023
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ASTI Holdings Limited published this content on 02 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 May 2024 11:52:24 UTC.
