Frontken Corporation Berhad 200401012517 (651020-T) • ANNUAL REPORT 2023 35 In the reporting period of FY2023, we achieved the following: (cont’d) RND INNOVATION INDICATORS UNIT OF MEASURE FY2023 RESEARCH AND DEVELOPMENT AND INNOVATION (“RDI”) CAPABILITY MATURITY MODEL I. Committed compliance to achieve level 5 research development innovation capability maturity model; RDI CMM level 100% II. Committed compliance to achieve level 5 knowledge competency maturity model for all FTE in RDI; KCMM level 4.10 III. Committed compliance to full process of records internal audits without major critical discrepancies; compliance 100% IV. Committed compliance to full production system external audits without major critical discrepancies. compliance 100% SUSTAINABILITY DEVELOPMENT INDEX ESG RATINGS I. Committed compliance to achieve top 25% by ESG ratings among PLCS in FBM EMAS that have been assessed by FTSE RUSSELL. ESG ratings of PLCS assessed by FTSE RUSSELL in accordance with FTSE RUSSELL ESG RATINGS methodology; score 4 stars II. Committed compliance to achieve the inclusion into the FTSE4GOOD BURSA Malaysia index; inclusion Yes III. Committed compliance to achieve the inclusion into the FTSE4GOOD BURSA Malaysia Shariah index. inclusion Yes INNOVATION PROJECTS FOR SUSTAINABILITY DEVELOPMENT I. Total accumulated green power project (kWh) since 2018; kWh 3,183,631 II. Total accumulated DIW recycling project since 2018 (tonne); tonne 394,517 III. Total accumulated waste recycling project since 2018 (kg). kg 460,807 RESPONSIBLE GREEN PRODUCTION Frontken Group has made significant strides in enhancing its green production methods to address operational challenges posed by global warming. In FY2023, the establishment of an advanced new production plant in Taiwan and a cuttingedge production line in Singapore reflects the company’s commitment to innovation-driven progress. As chip processes become increasingly complex, the advanced production capacity has expanded. Despite this growth, efforts to maintain sustainability have been evident, with marginal increases observed in unit production average power and water usage, attributed to product and process optimisations and the qualification stage of new facilities. The company has maintained consistency in managing waste production, demonstrating a commitment to environmental stewardship. Moving forward, these incremental increases will be mitigated by the ongoing expansion of renewable energy and water recycling systems, alongside future innovations. SUSTAINABILITY REPORT (CONT’D)
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