Environmental, Social and Governance

CORPORATE COMMITMENTS
Our Philosophy

At Advanced Energy, we take ESG responsibility seriously. Our results and ongoing efforts related to ESG are an
integral part of our commitment to deliver long-term value to our global stakeholders. This commitment is driven from
the highest levels of the Company, including our Chief Executive Officer, executive management team and Board of
Directors. We look forward to making a difference in the markets and communities we serve.

In 2023, we enhanced our governance structure by adding stakeholders in other key functions, including Finance and
Sales, to both the ESG Steering Committee and ESG Working Group. The ESG Steering Committee is responsible for
providing management-level guidance on our strategy, while the ESG Working Group is responsible for shaping our
approach and advancing our program. We actively pursue improvements in our ESG performance through
collaboration with our customers, suppliers and partners.

Read more on our ESG brochure

ENVIRONMENTAL

Designing Energy Efficient Products
Implementing Energy Efficient
Operations
Reducing Waste

SOCIAL

Creating a Performance
Culture
Engaging with Our
Communities
Safety and Wellbeing of
Workers
Diversity and Inclusion

GOVERNANCE

Enabling Effective
Management
Enhancing Transparency
Ethical Practices
Responsible Sourcing

CORPORATE COMMITMENTS
Recent Highlights

COMMITMENTS

2022
Advanced Energy launched the ESG Steering Committee in 2022.
The Committee is responsible for ESG approach and advancing our ESG program

AA
Advanced Energy received an MSCI ESG Rating of AA (on a scale of AAA-CCC) in 2024, placing the company in the leader category and in the top 20 percent of all companies in the Electronic Equipment, Instruments & Components sector globally.

ENVIRONMENT

98%
Advanced Energy launched power conversion products for energy-intensive data center computing applications featuring industry-leading efficiency up to 98%

93%
Waste Diversion Rate across our global manufacturing sites

12%
Advanced Energy allocated Research & Development budget to drive innovation in the power solutions space

SOCIAL

~44%
Women comprise almost half of our global workforce

0.17
Total Recordable Incident Rate (TRIR)

435
Employees participated in our leadership development program to date

GOVERNANCE

90%
of our board members are independent, non-executive directors

30%
of our Board of Directors are women

4.6
years of average tenure for Board of Directors (as of May 1, 2024)

CORPORATE COMMITMENTS
Acting Responsibly

Ethical Business Practices

We commit to the standards of the Responsible Business Alliance (RBA) Code of Conduct. The RBA is the world’s largest industry coalition dedicated to corporate social responsibility in global supply chains.

Code of Ethical Conduct

Advanced Energy’s Code of Ethical Conduct contains principles and guidelines for: conflicts of interest, insider trading, privacy, gratuities, donations, gifts and business courtesies, anti-trust/competition, anti-slavery and anti-fraud.

Whistleblower Hotline

We regularly train employees on ethical business practices and provide a 24-hour hotline to address ethics issues. We do not tolerate unlawful retaliation against any individual who brings a complaint in good faith or participates in an investigation.

Antibribery and Corruption Policy

We are committed to upholding integrity in our organization and our Antibribery and Corruption Policy acts as a safeguard against unethical behavior and sets a standard of conduct that fosters trust, credibility, and respect.

Harassment / Discrimination Prevention

We are committed to providing a work environment that is free from harassment or discrimination based on race, color, religion, sex, sexual orientation, gender identity and expression, ethnicity and national origin, age, ancestry, disability, marital status, veteran or military status, genetic information, political affiliation, union membership or any other characteristic protected by law.

Freedom of Expression

Employees are free to participate and express themselves in discussion groups, forums, direct conversations with management and other communication channels without fear of discrimination, reprisal, intimidation or harassment. Our employees are able to take part in community, business, trade, professional, charitable and civic organizations.

Insider Trading Policy

Our Insider Trading Policy aims to prevent insider trading and help company personnel avoid the severe consequences associated with violations of insider trading laws. This policy is also intended to prevent even the appearance of improper conduct on the part of anyone employed by or associated with Advanced Energy.

Slavery and Human Trafficking
Our Slavery and Human Trafficking statement serves as a public declaration of our commitment to ethical business practices and the protection of human rights. This statement aims to ensure transparency in our supply chain, demonstrating that AE actively works to prevent exploitation and uphold the dignity of all individuals involved in our operations

CONDUCT CODE
View Advanced Energy's Code of Conduct

ETHICAL PRACTICES

Protecting Human Rights

Respecting the human rights of our employees and those involved in our business operations is important to Advanced Energy.

Without exception, as a global company, Advanced Energy does not engage in any form of forced, bonded (including debt bondage) or indentured labor, involuntary prison labor, slavery or trafficking of persons.

Our Supplier Code of Conduct applies to our suppliers and specifically prohibits activities involving slave or forced labor, human trafficking and child labor. Additionally, we have Slavery and Human Trafficking Statement available here.

We have policies and procedures in place to support this commitment.

Employee Code of Ethical Conduct that includes anti-slavery and human trafficking provision
Supplier Code of Conduct and Supplier Business Audit Program dedicated to preventing slavery and human trafficking. AE’s Purchasing terms and conditions require compliance with our Supplier Code of Conduct
Anonymous reporting system to employees and all members of our supply chain at www.advancedenergy.ethicspoint.com
Staffing agreements with third parties are consistent with AE’s policies
Annual training for all Purchasing, Commodity Management, and Supplier Quality personnel to raise awareness of modern slavery and human trafficking

ETHICAL PRACTICES

Practicing Responsible Sourcing

Advanced Energy is dedicated to reducing the
impact our procurement activities and supply chain
have on the planet, whether that impact is on
human rights, the environment or any other area of
corporate social responsibility.

The mining of conflict minerals supports armed conflict or risks of human rights abuses. Advanced Energy supports the U.S. Securities and Exchange Commission (SEC) rules to implement reporting and disclosure requirements related to “conflict minerals” as directed by the Dodd-Frank Wall Street Reform
and Consumer Protection Act of 2010. You can find more information here.

We encourage our direct suppliers to have in place
responsible minerals sourcing policies and due diligence measures that enable us to reasonably assure that certain minerals known as "conflict minerals": tantalum, tin, tungsten, and gold, in the products they sell to Advanced Energy, do not contain conflict minerals originating in the Democratic Republic of the Congo (DRC) and surrounding areas, or so-called Conflict Affected and High-Risk Areas (CAHRAs), unless the smelter involved is deemed "Conformant" by the Responsible Minerals Initiative (RMI),

Conflict Mineral Report
Conflict Mineral Policy