Climate Change Data

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Sustainable Environment Development
• Preserving Public Welfare
• Information Disclosure

Environmental Achievements

• Certified by ISO 14001:2015, OHSAS 18001:2007, ISO 50001:2011, ISO 14064:2006, ISO 14046:2014 and Green Plant evaluation; implemented energy-saving measures (air-conditioning, cooling water, LED); reduced greenhouse gas emissions (though exact figures are not clearly stated, a reduction target of 1% electricity usage is mentioned); saved water through recycling (548CMD estimated).

Social Achievements

• Established an employee hotline/grievance mechanism; provided a healthy and safe working environment with regular health and safety training; offered career development and training sessions; established consumer protection mechanisms and appealing procedures; implemented supplier evaluation procedures focusing on environmental and social impact; conducted charity events (Dream Come True Program, moon cake donations, blood donation drives).

Governance Achievements

• Established a Sustainable Development Committee (SDC) with board-authorized first-line managers; declared a reasonable salary remuneration policy integrated with employee performance appraisal; implemented regular CSR training for employees; established ethical corporate management best practice principles with suppliers.

Climate Goals & Targets

Environmental Challenges

• Reducing greenhouse gas emissions from electricity consumption; maintaining a sustainable supply chain.

Mitigation Strategies

• Implemented energy-saving measures, aiming for a 1% reduction in electricity usage (2017-2018); established supplier management and evaluation procedures with termination clauses for CSR breaches.

Supply Chain Management

Supplier Audits: Periodic and random audits

Responsible Procurement

• Procedure of Supplier Management and Evaluation
• Ethical Corporate Management Best Practice Principles

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: ISO 14001:2015, OHSAS 18001:2007, ISO 50001:2011, ISO 14064:2006, ISO 14046:2014

Third-party Assurance: DNV-GL (pending)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Economic
• Environmental
• Social

Environmental Achievements

• Reduced carbon dioxide equivalent emissions by 1611 metric tons in Taiwan through 9 new energy-saving measures.
• Increased water recycling rate to 18.92% globally and 56.85% in Taiwan.
• Reused 77.72% of general industrial waste and 64.11% of hazardous industrial waste in Taiwan.

Social Achievements

• Achieved 80% customer satisfaction.
• Reduced disabling frequency rate to 2.57.
• Provided an average of 20.03 training hours for direct personnel and 24.32 hours for indirect personnel.

Governance Achievements

• Ranked in the top 5% of all TPEx-listed OTC companies in the corporate governance appraisal in 2018.
• Implemented a robust internal control system with no severe abnormalities or corruption reported.
• Established a Sustainable Development Committee and three task forces (environmental, governance, and social).

Climate Goals & Targets

Environmental Challenges

• Data collection not completed for some GlobalWafers’ operation sites, resulting in lack of disclosure of performance data for some sites.
• Increased greenhouse gas emissions due to acquisitions and capacity expansion.
• Increased water usage due to new plant and capacity expansion.

Mitigation Strategies

• Established a data collection mechanism to include all performance data for all operation sites in the next 3 years.
• Implemented 9 new energy-saving measures in Taiwan.
• Enhanced water recycling systems in Taiwan.

Supply Chain Management

Supplier Audits: Approximately 2% of total suppliers

Responsible Procurement

• Supplier assessment operation to ensure compliance with quality, environment, safety, and hygiene requirements.
• Compliance with integrity operation principles and local laws and regulations (e.g., RoHS, REACH, TSCA).

Climate-Related Risks & Opportunities

Physical Risks

• Extreme climate conditions (drought, floods, snow storms)

Transition Risks

• Increased energy costs (rising electricity bills, carbon tax, energy tax)

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 14001:2015, IATF 16949:2016, OHSAS 18001:2007, TIPS (Taiwan Intellectual Property Management System) AA-level

Third-party Assurance: DNV GL Business Assurance Co., Ltd.

Awards & Recognition

• Triple A Country Award Taiwan 2017 – Best GDR by The Asset
• One Gold Tower award, two Silver Tower awards, and one Bronze Tower medal in the 31st Taiwan National Quality Control Circle (QCC) competition

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Economic Performance
• Environmental Performance
• Social Performance

Environmental Achievements

• 7.1% reduction in energy consumption per unit of electricity from plants worldwide
• 8.2% reduction in greenhouse gas emissions per unit from plants worldwide
• Water unit consumption for plants worldwide reduced by 16.1%
• Waste management (recycling and reuse treatment ratio for the total waste volume) cumulatively increased to 82.3%
• No pollution prevention-related abnormal incident

Social Achievements

• Average education and training hours for the Group's employees was 16 hours
• No work-related ill health case occurred
• No major occupational disaster occurred throughout the year
• No human rights-related dispute occurred throughout the year
• Zero labor salary dispute occurred throughout the year
• Customer satisfaction with quality and product development for the year is > 80 points

Governance Achievements

• Maintained the top 5% ranking in the OTC category for the corporate governance appraisal
• No unethical or dishonest incident has occurred

Climate Goals & Targets

Environmental Challenges

• Increasing frequency of extreme weather
• Worst drought in half a century in Taiwan
• Power shortage concerns due to increased electricity consumption
• Supply chain disruptions caused by COVID-19
• Global transportation upheavals
• Water shortage
• Geopolitical conflicts and the spread of COVID-19 disrupting international supply chains

Mitigation Strategies

• Implemented emergency plans to combat water scarcity through active water conservation measures and management
• Increased the weight of green energy by building solar power plants, signing Power Purchase Agreement (PPA), and purchasing Renewable Energy Certificates (RECs)
• Localized production and establishing regional ecosystems
• Built multiple suppliers to diversify supply risks
• Introduced automated production via Big Data, AI, and robotic arm
• Strengthened health awareness of colleagues, conducted risk assessments, formulated countermeasures, strengthened epidemic prevention measures, implemented employee health monitoring, strengthened health promotion, provided real-time world epidemic information, arranged for employees to work in shifts, and reduced the number of people in confined spaces

Supply Chain Management

Supplier Audits: 1.2% of total number of suppliers

Responsible Procurement

• Supplier localization
• Supplier evaluation management process
• Contractor management procedures
• Conflict-Free Minerals Plan

Climate-Related Risks & Opportunities

Physical Risks

• Average temperature rise
• Extreme climate events with increased severity (drought, electricity consumption increase)
• Increased raw material/transportation costs

Transition Risks

• Impact on company image
• Renewable energy regulations/carbon fee shock
• Increased greenhouse gas emission costs
• Market uncertainty
• Increased new technologies investment costs

Opportunities

• Promote cleaner production
• Water resource management
• Adopt new/low carbon technologies
• Policy reward
• Carbon information disclosure
• Production process
• Develop new products or services via R&D and innovation

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: ISO 14001, ISO 45001, IATF 16949, OHSAS 18001, TS16949, TIPS AA

Third-party Assurance: DNV Business Assurance Co., Ltd.

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)

Initiatives contribute to these goals through energy efficiency improvements, waste reduction, renewable energy adoption, and climate change mitigation

Sustainable Products & Innovation

• Energy-efficient products
• Environmentally friendly products

Awards & Recognition

• Top 5% OTC company ranking in the 8th Corporate Governance Evaluation
• Copper Award of the Third Term of National Enterprise Environmental Protection Award
• Gold Tower Award for the 2021 Taiwan Continuous Improvement Competition
• Top 10 constituents of "Taiwan OTC Sustainability (ESG) Index"
• Top 100 companies in the Asian supply chain by market capitalization by DIGITIMES
• Three-star Eruboshi mark honors (Utsunomiya Factory)
• CHR Healthy Corporate Citizenship Promise Enterprise certification label

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Introduced ISO 14001 Environmental Management System and ISO 50001 Energy Management System.
• Implemented various energy-saving measures and continuously improved water recycling and waste reduction.
• Joined RE100 initiative, pledging 100% renewable energy by 2050 with phased targets (20% by 2030, 35% by 2035, 50% by 2040).
• Reduced greenhouse gas emissions (specific figures not provided but mentioned in the report).

Social Achievements

• Established human rights policy aligned with international conventions, prohibiting discrimination and promoting a safe and healthy work environment.
• Implemented employee welfare measures including fair salaries, paid leaves, and various benefits.
• Conducted regular employee health checks and safety training (22,535 attendees in 2023).
• Established effective career development training plans (details on training hours provided).

Governance Achievements

• Established Corporate Sustainability Development Committee as the highest-level decision-making center.
• Implemented Risk Management Policy and Procedure approved by the board of directors.
• Complied with TCFD recommendations, disclosing climate change-related information, risks, opportunities, and strategies.

Climate Goals & Targets

Environmental Challenges

• Climate change risks (identified 9 in 2023)
• Environmental protection risks
• Occupational safety and health risks
• Labor-management relations risks
• Geopolitical risks
• Energy transition risks
• Cybersecurity risks

Mitigation Strategies

• Developed corresponding risk management strategies for each identified risk (details in the Sustainability Report).
• Implemented energy management system (ISO 50001), water footprint assessment (ISO 14046), and clean production assessment.
• Established annual targets and short-, medium-, and long-term goals for environmental metrics.
• Implemented various measures to mitigate the impact of operations on the natural environment.

Supply Chain Management

Responsible Procurement

• Supplier Evaluation Management Process
• Adherence to RBA Code of Conduct
• Green regulations (RoHS, REACH, WEEE)
• Conflict minerals avoidance

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards, SASB Standards

Certifications: ISO 14001, ISO 50001, ISO 45001

Third-party Assurance: DNV Business Assurance Co., Ltd.