Fair Money & Economic Opportunity

Kulicke and Soffa Industries, Inc. (KLIC.US) is a provider of capital equipment and services for semiconductor assembly, not a financial institution offering lending or deposit services to consumers. Therefore, most KPIs related to financial products, such as underserved client share, pricing fairness, exploitative fee exposure, inclusion initiatives (loan/insurance book), data accessibility (customer finance data), fair lending compliance, wealth building outcome, debt burden ratio, geographic inclusion (financial service access points), and product simplicity (financial products), are not applicable and score 0. The company's core business lies outside finance, and it does not offer financial literacy programs.

For profit reinvestment, the company reported an economic value retained of US$62,669,000 in FY2019 and community investment of US$739,000, which is approximately 1.18% of retained economic value. This falls into the -90 tier.

Fair Pay & Worker Respect

In 2024, the company reported a CEO-to-median-employee pay ratio of 150:1.

The accident frequency rate (AFR) was 0.6 in 2024, following 0.5 in 2023 and 1.3 in 2022. Employee engagement, based on Glassdoor reviews, shows an average rating of 3.2 out of 5 stars, which translates to approximately 64/100.

Fair Trade & Ethical Sourcing

The company reported zero substantiated forced or child labor incidents.

Contracts with suppliers include provisions on conflict minerals, and the company has a supplier code of business conduct and ethics. However, there is no specific percentage of all supplier contracts that include enforceable ethical-sourcing clauses. For high-risk materials, the company surveyed 186 Tier-1 suppliers for conflict minerals in 2022, achieving a 98% response rate, and identified 385 smelters, with 286 being compliant. In FY2023, the company increased procurement from local or regional suppliers by 15%.

Honest & Fair Business

Kulicke and Soffa Industries, Inc. reported zero incidents of non-compliance with environmental, social, and economic laws resulting in significant fines or non-monetary sanctions for fiscal years 2021, 2022, 2023, and 2024.

The company has a comprehensive Whistleblower Policy, communicated to all employees, officers, and directors, which includes an anonymous confidential hotline and prohibits retaliation for good faith reports. All good faith reports are promptly forwarded to the Compliance Officer and Committee for investigation and resolution, with the Audit Committee receiving quarterly updates and having final authority. The company has a Clawback Policy for erroneously awarded compensation due to accounting restatements but has not sought to recoup any payments under this policy to date. However, data calculation errors for electricity consumption and paper usage were reported in previous reports and subsequently corrected. Seven of the company's directors are determined to be 'independent' as defined by Nasdaq and SEC rules, out of a total of eight directors. K&S has a Code of Business Conduct and a Corporate Responsibility Policy addressing anti-corruption, conducts annual online ethics training, and reported zero cases of corruption for FY2021, FY2022, and FY2023. Independent, limited external assurance was performed for FY2023 and FY2024 on Scope 1 and Scope 2 GHG emissions data, and selected sustainability performance data including paper usage, water consumption, and waste generated and disposed, covering seven global operational sites.

Kind to Animals

Kulicke and Soffa Industries, Inc. is a semiconductor equipment manufacturer and is listed as having "No Animal Exploitation," indicating that KPIs related to cruelty-free certification, alternative testing usage, humane certified operations, animal testing policy, animal testing volume, animal agriculture ethics, and animal-free R&D collaboration are not applicable to its core business.

The company does not source eggs, meat, or dairy, making the cage-free sourcing KPI not applicable. For wildlife conservation, the company sponsored 50 trees in Singapore for S$15,000 and donated $5,000 to the Free Rein Foundation in FY2024. These specific donations total approximately US$16,250, which is less than 0.05% of its over US$706 million revenue in FY2024, with no measurable biodiversity outcomes provided. The company conducts yearly audits on selected suppliers' processes and policies, including monitoring sub-tier suppliers, and plans to progressively ask key suppliers to submit Responsible Business Alliance (RBA) Self-Assessment Questionnaires in FY2025. However, the percentage of animal-related suppliers audited for welfare compliance is not specified. The company's products do not contain animal-derived inputs, making the ethical input substitution KPI not applicable. The company's public policy engagement focuses on compliance with regulations like EU REACH, RoHS, SEC Conflict Minerals, and TSCA, and adoption of the RBA Code of Conduct, but does not include active engagement in animal welfare policy improvement or advocacy for higher standards.

No War, No Weapons

The company strictly prohibits engagement in or support of activities that violate economic sanctions, with automated controls in place to prevent breaches.

K&S's due diligence approach for conflict minerals is designed to conform with the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas. For the reporting period of January 1 to December 31, 2024, approximately 62.76% of surveyed suppliers were certified as "Conformant" or "Active" regarding conflict minerals. The company issues the Conflict Minerals Reporting Template (CMRT) to the top 98% of its suppliers for certain subsidiaries. K&S also undertakes due diligence to determine if conflict minerals originated from the Democratic Republic of Congo or an adjoining country. The company has a policy not to work with suppliers believed to be supplying 3TG from sources that may support conflict in the DRC or adjoining countries. K&S is committed to upholding and supporting human rights at all levels, including in its supply chain, and prohibits child labor and forced labor. The company reported zero validated cases of non-compliance with laws and regulations resulting in significant fines or sanctions in 2024, and zero validated cases of corruption, fraud, bribery, or money laundering activities in 2024. K&S has codified ethical red lines, explicitly stating it is "Not designing, producing or selling anti-personnel mines, cluster munitions and white phosphorous munitions or any of their related key components."

Respect for Cultures & Communities

Kulicke & Soffa (K&S) reported zero incidents of corruption, fraud, bribery, or money laundering activities in FY2024, and zero validated cases of non-compliance with laws and regulations resulting in significant fines or sanctions.

The company has a dedicated whistleblower policy and hotline for reporting violations or wrongdoing. K&S implemented a strategic diversity and inclusion plan in FY2022, which included cultural competency training for all employees, with specific training for ELT members and the D&I Committee.