Climate Change Data

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Sustainable Environment
• Labor Safety
• Employee Care
• Social Welfare

Environmental Achievements

• Reduced GHG emissions by 0.05% annually (from 0.144 metric tons of CO2 per square meter in 2021 to 0.137 in 2022)
• Implemented ISO 50001 Energy Management System in 2022, resulting in energy savings of 408,753 kWh across three STSP factories (3.5-4% reduction compared to the previous year).
• Successfully implemented a 2,731KW solar power initiative across the rooftops of facilities within the Southern Taiwan Science Park (STSP).

Social Achievements

• Zero labor disputes in 2022 (compared to 1 in 2021).
• Increased investment in community care to NT$12.58 million in 2022 (a 722% growth from 2021).

Governance Achievements

• Established an Environmental, Social, and Corporate Governance Sustainability Committee (ESG Committee) in 2022.
• Three out of nine directors are independent directors.
• Two out of all directors are female.

Climate Goals & Targets

Environmental Challenges

• Escalating energy costs, rising transportation expenses, and risks posed by electricity and water shortages due to climate change.
• Market competition intensified after participation in WTO, leading to price reduction and reduced product gross margin.
• High engineering variables in automatic and integrated systems, leading to increased costs and financial risks.
• Insufficient graduate talents and risk of poaching excellent professionals.

Mitigation Strategies

• Implemented ISO 14064 GHG Inventories and ISO 50001 Energy Management System to enhance energy performance and decrease GHG emissions.
• Developed modularized panels to command a competitive edge in pricing and production speed; offered customized products; provided speedy, real-time onsite maintenance/repair services.
• Evaluated factors influencing work periods, maintained good supplier relationships, developed long-term outsourcing vendors, adopted steady financial policy with sufficient operating revolving fund.
• Provided internal training to improve product design and technical abilities; offered bonuses, share allotment, and stock option programs to retain employees; actively recruited good talents.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Prioritize Taiwanese suppliers (75% of total procurement amount) to support local development.
• Established “Supplier Environmental Health and Safety Management Rules”.

Climate-Related Risks & Opportunities

Physical Risks

• Electricity and water shortages due to volatile climate

Transition Risks

• Carbon Border Adjustment Mechanism (CBAM) and domestic carbon pricing.

Opportunities

• Development of energy-efficient products and services.

Reporting Standards

Frameworks Used: GRI, AA1000 AS v3

Certifications: ISO 14001, ISO 45001, ISO 50001, ISO 9001, ISO 14064, SA8000, AEO

Third-party Assurance: BSI Taiwan Branch

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• TSMC Excellent Contractors, Excellent Safety Personnel, and Excellent Supervisors awards (2022)
• Micron A3 Sustainability Achievement Award (2022)
• ASE The Contracting Excellence Award for New Construction Projects (2022)
• Health Workplace Certification ‒ Health Start Label (2023)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Governance
• Environment, Health and Safety (EHS)
• Labor Safety
• Employee Care
• Social Welfare

Environmental Achievements

• Reduced electricity consumption by 1% annually through energy-saving measures (LED lighting, inverter installation, chilled water pump temperature control).
• Successfully introduced the ISO 50001 energy management system.
• Achieved a 2.7% reduction in electricity consumption across all factories compared to 2022 (447,185 kWh saved).

Social Achievements

• Established the Sustainable Development Committee.
• Provided 200 hours of integrity/sustainability education courses for 126 participants.
• Resumed domestic and international employee trips and family days after the pandemic.

Governance Achievements

• Established the Risk Management Committee and Sustainable Development Committee in 2023.
• 8 out of 10 directors are independent directors.
• 100% average attendance rate for board meetings and functional committees.

Climate Goals & Targets

Environmental Challenges

• Changes in regulations and standards related to climate change.
• Increased likelihood of extreme weather events impacting operations.
• EU's Carbon Border Adjustment Mechanism (CBAM) increasing operational costs.
• Insufficient graduate talents and potential poaching of employees.

Mitigation Strategies

• Integrating climate change risk issues into management using a TCFD-aligned approach.
• Developing emergency response measures and employee training for extreme weather events.
• Closely following CBAM requirements and evaluating carbon reduction strategies.
• Providing internal training and offering bonus, share allotment, and stock option programs to retain employees.

Supply Chain Management

Responsible Procurement

• Supplier evaluation system, including assessments for new suppliers and reviews for existing suppliers.
• Prioritizing Taiwanese suppliers (86.91% of total procurement).

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (typhoons, floods)

Transition Risks

• Government's Climate Change Response Act (2050 net-zero emissions target)
• EU's Carbon Border Adjustment Mechanism (CBAM)

Opportunities

• Increased demand for low-carbon products and services
• Use of low-carbon and renewable energy

Reporting Standards

Frameworks Used: GRI Standards, AA1000 AS v3

Certifications: ISO 14001, ISO 45001, ISO 50001, ISO 9001, ISO 14064, SA8000, ISO 13485, QMS

Third-party Assurance: BSI Taiwan Branch

Awards & Recognition

• BusinessWeek's Top 100 Carbon Competitive Companies in 2023
• Health Workplace Certification– Health Start Label