Introductory Remarks by the Executive Board

In addition to financial aspects such as sales and revenue, AIXTRON values a responsible and sustainable business operation. This means becoming aware of the effects of our own business activities on the environment and people. We consider sustainability to stand for balancing our focus on sustainable commercial success with protection of the environment and our societal responsibility.

We endeavor to continually improve our sustainability strategy and the associated policies, standards and programs in order to fulfil the needs and expectations of our stakeholders. We want to transparently report the commercial, environmental and societal effects of our activities as well as our performance goals, performance indicators, and results. In this sense, we are proud being a climate neutral company since 2019.

With this as background, we have developed and adopted our Corporate Social Responsibility Policy for which we have determined five primary topics on which we will concentrate our sustainability efforts.

The Executive Board

Dr. Felix Grawert
Chairman of the Executive Board (CEO & President)

Dr. Christian Danninger
Member of the Executive Board (CFO)

Preamble

In the following policy on sustainability, we describe its concepts and points of emphasis in the realm of sustainability and our commitment to identifying and implementing all of the required measures.

We use our innovative strength to diminish our own environmental footprint as well as that of our customers and the end consumer. Our unique technology allows our customers to make semiconductors more efficient while conserving of resources which in turn allows to improve the efficiency of a number of products. This relates to applications in areas such as energy supply, eMobility, entertainment electronics and communication.

We are aware of our responsibility towards customers, shareholders, suppliers, employees and society. We accordingly conduct our businesses to achieve sustainable growth. At the same time, we are mindful of the societal, environmental and commercial impact of our activities. We thereby merge commercial as well as environmental and societal interests while contributing to secure jobs.

A series of United Nations Sustainable Development Goals (SDGs) are promoted by our sustainability strategy. The goal of “Industry, Innovation and Infrastructure” (SDG 9) relates to the core of our company, because innovations are an essential part of our business and the basis of our success. New solar cells made on our tools have achieved world records in efficiency, which clearly promotes the goal of “affordable and clean energy” (SDG 7). Other goals that we support are “humane work and commercial growth” (SDG 8), climate action (SDG 13), but also conscientious production and consumption (SDG 12).

As a part of our business strategy, we are focused on five central areas in our sustainability strategy: Environment and ecology, employees, occupational safety and health protection, societal and community involvement, and respect for human rights and combatting corruption and bribery.

Environment, Climate and Energy

Climate change is an irreversible phenomenon that we all must confront. We will therefore continue along the path we have already taken, to further reduce CO2 emissions from our business activities and those of our supply chain, and to compensate for the unavoidable emissions with CO2 certificates that meet the highest quality standards. Moreover, we strive for the improvement of the energy efficiency of our products to thereby reducing the energy consumption of the operation of our systems on our customers’ sites.

The present CSR guideline is taken into account in daily business operations and it applies to all business relations with stakeholders:

• Through various measures, we ensure that our company policy in the areas of environmental protection and energy management is effectively implemented. The required technical and organizational measures are reviewed regularly and continually improved.
• We optimize our energy consumption for systems and buildings with the help of our certified energy management systems, reducing our costs as well as energy use.
• Moreover, we are striving to take a leading position on energy efficiency in our sector and our region.
• With our equipment we make it possible for our customers to develop sustainable and energy efficient products and applications and we thereby contribute to the reduction in global energy consumption.
• We continually endeavor to optimize our environmental footprint with our products and solutions on the one hand, and with efficient processes and production procedures on the other.

Employees, Occupational Safety and Health Protection

Our employees, with their skills and know-how, their high level of engagement and their willingness to continually learn in conjunction with the diversity of our employees, are essential factors of our commercial success. Our outstanding technologies with leading positions in the world market are the result of our innovative and competitive skills and the ability to continually improve our productivity.

Equal opportunity is a basic prerequisite for all current and potential employees. We see the diversity of our employees as an important foundation and an essential ingredient of our company values and company culture.

The avoidance of potential risks in the areas of health protection and occupational safety has the highest priority. Our goal is to avoid injuries to people and damage to assets. To achieve this we make sure that

• our company policy in the areas of occupational safety and health protection is effectively implemented and legal regulations and recommendations are strictly complied with;
• all required technical and organizational measures are reviewed regularly and improved continually;
• potential sources of risk are identified in time and their causes eliminated to ensure safe work / a safe workplace;
• our goals, procedures and specific measures in the areas of occupational safety, health- and environmental protection and our worldwide standards are steadily improved;
• each employee understands that supporting our goals and measures in the area of occupational safety and health protection is a part of their assignment;

Civic and Societal Engagement

As a part of society, we voluntarily engage in civic and societal projects. This is a part of our holistic understanding of sustainability.

Human Rights

We are committed to promoting and respecting human rights, work standards and fair business practices in order to make a good business environment possible.

• We do not tolerate any type of forced labor, oppression or involuntary prison work. Each job performance must be carried out voluntarily. Employment can be terminated at any time by any employee, taking into consideration contractual and legal timelines.
• Child labor is not tolerated. The term “child” refers to youths younger than 15 years.
• We guarantee and respect the right of our employees to freedom of association and the formation of employee representation vis-à-vis management, in accordance with the applicable national laws.
• Employees’ remuneration is based on fair and partnership-based regulations. It should be in line with market conditions and comply with the applicable wage legislation, statutory overtime regulations and any legally required additional benefits.
• The dignity of man is inviolable. We consider respect for basic human rights to be of the highest priority. Inhumane or demeaning treatment of our employees, including sexual harassment, sexual coercion and physical compulsion or verbal attacks, is strictly prohibited. This also includes any form of threat of the indicated human rights violations. A violation would have immediate legal consequences.
• We see the diversity of our employees as an enrichment for AIXTRON, whether in its innovative strength or in also strengthening its competitiveness, and we therefore acknowledge and appreciate diversity. All of our employees thereby enjoy the same esteem, the same respect and the same opportunities. We are explicitly committed to equal opportunities and we encourage cooperation in mixed teams. We actively support the promotion of diversity.

Responsibility in the Supply Chain

We see responsibility for our supply chain as an important component of our understanding of Corporate Social Responsibility. We voluntarily fulfil this commitment by communicating our requirements and expectations to our suppliers. This results in the fact that

• environmental and societal aspects are a part of our supply chain management;
• our suppliers must comply with all laws and provisions;
• compliance with human rights, occupational safety and health protection are guaranteed;
• we want to assure that all suppliers and their subcontractors uphold ethical, moral, and legal standards and that no conflict minerals are used within the supply chain;
• suppliers comply with our purchasing conditions, which are in harmony with our code of conduct which have been published on our company website for all suppliers;
• we encourage our suppliers to establish management systems in the areas of occupational safety, health- and environmental protection, which correspond to the standard ISO 90021, ISO 14001, OHSAS 18001 or similar standards;
• we analyze our supply chain for risks and opportunities and assess the effects of a cooperation
• within our abilities and area of influence, we strive to ensure the adherence to criteria such as environmental protection, societal responsibility and moral business practices by our suppliers;