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Sustainability
Advanced Energy is a global leader in highly engineered, precision power conversion, measurement, and control solutions for mission-critical applications and processes. We integrate sustainability into how we operate, innovate, and grow.
Advancing Sustainability
Advanced Energy’s sustainability efforts reflect our commitment to delivering long-term value for our global stakeholders. Led by our Chief Executive Officer and Executive Management Team, with oversight from our Board of Directors, we work to make a positive difference in the markets and communities we serve.
Advanced Energy’s sustainability efforts reflect our commitment to delivering long-term value for our global stakeholders. Led by our Chief Executive Officer and Executive Management Team, with oversight from our Board of Directors, we work to make a positive difference in the markets and communities we serve.
SUSTAINABILITY REPORT
ADVANCED ENERGY AT A GLANCE
Advanced Energy designs and manufactures highly engineered precision power conversion, measurement, and control solutions for mission-critical applications and processes. Our products enable customer innovation across a wide range of markets, including Semiconductor Equipment, Data Center Computing, Industrial and Medical, and Telecom and Networking.
Advanced Energy designs and manufactures highly engineered precision power conversion, measurement, and control solutions for mission-critical applications and processes. Our products enable customer innovation across a wide range of markets, including Semiconductor Equipment, Data Center Computing, Industrial and Medical, and Telecom and Networking.
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External ESG ratings provide stakeholders with independent perspectives on sustainability-related risks and performance. Advanced Energy engages with leading assessment organizations to support transparency and continuous improvement.
Environmental Management
We maintain environmental management systems certified to the international standard ISO 14001 across our volume manufacturing sites in Malaysia, the Philippines, and Mexico, plus our Singapore service and design center. Our Thailand manufacturing site is working toward certification, which will provide 100% coverage of volume manufacturing locations.
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 | Metric Tons CO₂e |
| Scope 1 | 2,399 |
| Scope 2 (location-based method) | 62,241 |
| Scope 1 and 2 combined | 64,640 |
| Scope 3 (categories 1, 3, 4, 5, 11) | 3,076,500 |
OUR ROLE IN THE ENERGY TRANSITION
We provide high-efficiency AC-DC and DC-DC power supplies, high-voltage systems, and precision power platforms used in semiconductor manufacturing, data centers, industrial processes, medical technologies, and renewable energy applications. For example, our OCP-compliant ORv3 power shelf has a peak efficiency of nearly 98%. Approximately 92% of our Scope 1–3 GHG emissions are attributable to electricity consumed during product use, making improvements in product conversion efficiency our greatest opportunity to reduce our environmental impact.
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Site-level initiatives include LED upgrades, HVAC improvements, space consolidation, and the installation of energy recovery and control switches on high-use equipment. For example, solar PV systems installed at our Metzingen, Germany site generate approximately 40,000 kWh of renewable energy each year.
Waste and Circularity
We manage hazardous and non-hazardous waste through reduction, reuse, recycling, refurbishment, and recovery programs. In 2025, our volume manufacturing sites achieved an average waste diversion rate of 92.5%. Hazardous waste is managed through approved treatment providers subject to vendor qualification and monitoring.
Water Stewardship
In 2025, total water withdrawals were approximately 332 ML. Manufacturing processes account for less than 10% of total water consumption, with water primarily used for food preparation, landscaping, washroom facilities, and required testing activities. We evaluated site-level water stress using the World Resources Institute Aqueduct 4.0 database, which found that 32% of sites are currently located in areas of high or extremely high water stress, increasing to 48% by 2050. These findings inform site-level water efficiency initiatives and broader climate risk assessments.
We manage hazardous and non-hazardous waste through reduction, reuse, recycling, refurbishment, and recovery programs. In 2025, our volume manufacturing sites achieved an average waste diversion rate of 92.5%. Hazardous waste is managed through approved treatment providers subject to vendor qualification and monitoring.
Water Stewardship
In 2025, total water withdrawals were approximately 332 ML. Manufacturing processes account for less than 10% of total water consumption, with water primarily used for food preparation, landscaping, washroom facilities, and required testing activities. We evaluated site-level water stress using the World Resources Institute Aqueduct 4.0 database, which found that 32% of sites are currently located in areas of high or extremely high water stress, increasing to 48% by 2050. These findings inform site-level water efficiency initiatives and broader climate risk assessments.
Biodiversity and Air Quality
In 2025, we completed a biodiversity screening of all manufacturing and engineering locations to evaluate proximity to protected areas and to prioritize locations for further review.
We operate abatement systems for fluorinated process gases used during testing of our Remote Plasma Source (RPS) products, treating effluent streams with dry-bed scrubbers or hot-bed reactors to capture and neutralize emissions before release.
Our People
We are committed to creating a workplace where employees feel valued, included, and empowered to contribute, grow, and succeed. At the end of 2025, Advanced Energy employed 13,419 employees across 15 countries, 99.75% of them full-time. Workforce demographics included 47% female and 53% male employees, with an average employee age of 35. Over the past five years, our total workforce grew by 25%.
We provide competitive compensation and benefits designed to attract, retain, and motivate employees through market-based compensation, pay-for-performance incentives, and locally competitive benefits. We respect employees’ rights to freedom of association and collective bargaining, and do not discriminate against employees for participating in lawful labor organizations.
We provide competitive compensation and benefits designed to attract, retain, and motivate employees through market-based compensation, pay-for-performance incentives, and locally competitive benefits. We respect employees’ rights to freedom of association and collective bargaining, and do not discriminate against employees for participating in lawful labor organizations.
LEARNING AND DEVELOPMENT
Training is delivered through a combination of online and in-person programs supported by our Learning Management System. By the end of 2025, 735 employees had participated in our Leadership Essentials Program, a 10-week development program, since its inception. Our Child-of-Employee Scholarship Program provides one-time educational awards of up to US$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. In 2025, we continued embedding Powering Technology Together, our Employee Value Proposition (EVP), which reflects six key areas (compensation, benefits, career development, workplace environment, culture, and reputation) as a framework for attracting and retaining talent globally.
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AWARDS
We are proud to be recognized across multiple regions for our workplace culture and workforce development.
Built In 2026 Best Places -
Colorado, Boston and San Francisco
Champion of Strategic Workforce Transformation and Talent Development — TVET Asia and Malaysia’s Ministry of Higher Education
Best Employer Award 2025 – Employees Provident Fund (EPF), Penang regionHEALTH 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): 0.33
- 2025 Lost Time Incident Rate (LTIR): 0.17
- More than 2,000 manager-led safety walks completed at volume manufacturing locations
- Hazards identified rose from 6,632 in 2023 to 13,998 in 2025; electrical shock incidents declined from 14 to 10
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.
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Advanced Energy's Nine EHS Golden Behaviors
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.
We also collaborate with universities on internships, sponsorship of student-led engineering projects, guest lectures, mentoring, and academic events.
WORKING AT ADVANCED ENERGY
Learn more about Working at Advanced Energy and our culture, employee experience, and career opportunities.
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:
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:
Our Code of Ethical Conduct applies to all employees, officers, Board members, and contractors, establishing expectations for ethical decision-making, legal compliance, respectful conduct, and accountability.
Our core expectations are:
Our core expectations are:
- Be honest.
- Treat others with respect.
- Comply with the laws, regulations, AE policies, procedures, and internal controls that are applicable to your role.
- Complete training assignments in a timely manner.
- Speak up and raise a concern if you encounter a situation that doesn't feel right.
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.
RAISING CONCERNS
Employees may seek guidance or report actual or perceived violations of the Code 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 against individuals who raise concerns in good faith.
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.
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. |
| 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. |
| 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 | AE Terms & Conditions of Purchase and Terms & Conditions of Sales and Services, including terms for String Inverter Repair Services LLC and our German entities. |
| Terms of Use | Terms governing access to and use of all AE websites, including copyright, trademark, and privacy provisions. |
Compliance Documents
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.
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 |
| Sustainability Reports | Our Sustainability Report along with prior-year reports and ESG Brochures. |
| Slavery and Human Trafficking Statement | Our annual statement in support of the UK Modern Slavery Act, the California Transparency in Supply Chains Act, and similar laws. Outlines our policies, supply chain due diligence, supplier audits, and training to help keep our business and supply chains free from slavery and human trafficking. |
| EEO-1 Form | Our most recent EEO-1 report of U.S. workforce demographic data. |
| U.S. Trademark | Our registered and unregistered U.S. trademarks. |
| UK Tax Requirements | Our published disclosure in accordance with UK tax requirements. |
| Transparency in Coverage | Link to UnitedHealthcare’s Transparency in Coverage site, where health plan pricing information is published in accordance with U.S. federal transparency rules. |
| SEC Reports | Our filings with the U.S. Securities and Exchange Commission, including the annual Form 10-K and Proxy Statement. |
| Conflict Minerals Disclosures on Form SD | Our annual conflict minerals disclosures filed with the SEC on Form SD, supporting our Responsible Minerals Sourcing Policy. |
| ISO Accreditations and Certificates | ISO 9001, 13485, 14001, and 45001 certifications and ISO 17025 accreditation across our sites in APAC, EMEA, and North America, as well as CTPAT certification. |
| Safety Data Sheets (SDSs) | Safety Data Sheets for applicable AE materials, including Solaron Coolant, GeoSafe Geothermal Fluid, and Strontium Ferrite Magnetized Material (Ovation 35162 Circulator). |
| 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 Compliance
Advanced Energy is committed to protecting the environment and complying with applicable laws and regulations. A number of regulations have been enacted in jurisdictions around the world that restrict the use of certain substances in electronic products. These are often referred to as RoHS (Restriction of Hazardous Substances) regulations. Products like AE’s, which are installed, operated, and maintained by professionals in relatively limited quantities in commercial settings, are generally not the intended target of such regulations.
Our approach to these restrictions is to comply with applicable requirements, to meet market demand for solutions that go beyond compliance, and to honor our environmental commitment. In doing this, we will proceed with appropriate care to ensure we continue to meet our quality, reliability, and cost-competitiveness goals as well.
Our approach to these restrictions is to comply with applicable requirements, to meet market demand for solutions that go beyond compliance, and to honor our environmental commitment. In doing this, we will proceed with appropriate care to ensure we continue to meet our quality, reliability, and cost-competitiveness goals as well.
EU RoHS
Consistent with our environmental commitment, and in response to market demand, we offer a number of products that meet RoHS requirements applicable to in-scope products. For products that Advanced Energy designates as “RoHS compliant,” we’ve taken steps to ensure our management systems and procedures conform to the regulatory requirements and standards of practice for products in the scope of RoHS. Our products designated as RoHS compliant contain no substances regulated by RoHS above applicable thresholds, or they may contain small amounts of RoHS substances in specifically exempted applications. EU RoHS Directive 2002/95/EC of the European Parliament and of the Council of January 23, 2003, on the restriction of the use of certain hazardous substances in electrical and electronic equipment went into effect July 1, 2006. RoHS restricts the use of four heavy metals, lead, cadmium, mercury, hexavalent chromium; and two types of flame retardants, polybrominated biphenyls (PBB) and polybrominated biphenyl ethers (PBDE).
The directive and subsequent amendments exempt certain applications. In addition, the directive’s scope is limited to specific types of electrical and electronic equipment.
China RoHS
During February 2006, a number of Chinese government agencies published Management Methods for Controlling Pollution by Electronic Information Products, which became widely known as China RoHS. The rules took effect March 1, 2007.
China RoHS regulates the same substances as EU RoHS. Since China RoHS has no legal connection to EU requirements, products must be managed to meet the specific requirements of the Chinese regulations. China RoHS sets forth labeling and disclosure requirements not part of EU RoHS. The Chinese rules also require pre-market certification and place restrictions on substances in specific product groups, based on their listing in a product catalog.
The products Advanced Energy produce are not listed in the product catalog. Advanced Energy complies with China RoHS labeling and disclosure requirements for products imported into China and new products.
RoHS Compliance in Our Factories and Service Centers
Product and Component Segregation
Advanced Energy reserves a unique class of part numbers for RoHS-compliant parts and assemblies so everyone in our supply chain, factories, and service centers can readily identify them. To prevent cross-contamination, any area where RoHS-compliant work is performed, including engineering, production, and service, has a dedicated work surface, clear labeling, such as signs and floor tape, and dedicated tools.
Verification
Advanced Energy verifies the absence of regulated substances for RoHS-designated parts and assemblies with a portable x-ray fluorescence (XRF) analyzer. XRF analysis is conducted for selected parts as an element of Advanced Energy’s incoming inspection procedures for received materials.
Training
Elimination of tin-lead solder in manufacturing is a critical part of making RoHS-compliant products. Lead-free solder has different properties than traditional tin-lead solder (such as a 35°C higher melting point) so rigorous attention to correct soldering techniques is of paramount importance. All personnel who solder components must pass RoHS-compliant product training conducted by a certified trainer.
Supply Chain Management
Advanced Energy's standards for RoHS compliance in our supply chain are published in Advanced Energy document number RM0042, Restricted Materials and Environmental Compliance Requirements (see Supplier Standards). Our suppliers are important partners in our material compliance efforts, and we work with them to meet RoHS compliance on designated products. Suppliers submit a RoHS Certificate of Compliance for each part and assembly that they provide to Advanced Energy. Additionally, suppliers provide a declaration of the presence of any RoHS-regulated substances and maintain documentation that demonstrates compliance, such as analytical results and sub-tier supplier certifications. Any changes to the material composition of RoHS-compliant parts must be approved by Advanced Energy in accordance with our change management procedures. Suppliers are selectively audited for compliance with Advanced Energy RoHS requirements.
Part Availability
As the worldwide electronics industry has adapted to the requirements of various RoHS regulations, the availability of parts made with substances restricted by the regulations (e.g., lead solder) has been impacted. Advanced Energy has ISO9001-certified management systems that ensure we proactively and effectively manage substitutions for discontinued parts in our released products. Any changes to specified parts are reviewed through AE’s Enterprise Change Order (ECO) process and are only implemented with Advanced Energy’s explicit, written approval.
Additional Certifications, Declarations, and Acceptability Conditions
Blackbodies
Electronicmagnetic Emissions:
Low Voltage
CS1000 Series
CoolX600
CX1000
CoolX1800
CoolX3000
UltiMod
Xgen
Pyrometers
E2T
Photrix
SCR Power Controllers
TEGAM
A2LA Accredited
ATEX Approval Certificate