Climate Change Data

Environmental Metrics

ESG Focus Areas

• Company Governance
• Environmental Sustainability
• Social Sustainability
• Economic Sustainability

Environmental Achievements

• Reduced CO2-e emissions (excluding Fab5) to 269,305.581 tons in 2014.
• Achieved a 79% average process water recycling rate over three years.
• Fab5 received the Excellent Award in the 2014 Energy Conservation Award from the Bureau of Energy, Ministry of Economic Affairs.
• Received the Green Procurement Award from the Environmental Protection Administration.
• 100% lead-free and halogen-free products.
• Compliant with EU RoHS and SVHC-Free.

Social Achievements

• Won the “Work-Life Balance Award” and “Healthy and Happy Award” in the first Work-Life Balance Competition held by the Ministry of Labor (2014).
• Macronix Education Foundation received the “Excellent Award” from the Ministry of Education (2013).
• Implemented various employee wellbeing initiatives, including a health management system, health lectures, and on-site massage services.
• Organized over 30 employee clubs with diverse activities.
• Maintained harmonious labor-management relations with no labor disputes.
• Zero cases of occupational diseases in 2014.

Governance Achievements

• Established a compensation committee composed entirely of independent directors.
• Implemented a robust internal audit system reporting directly to the board of directors.
• Adopted a code of conduct and ethics for all employees.
• Ranked in the top 5% of companies in the Taiwan Stock Exchange's first corporate governance assessment.

Climate Goals & Targets

Environmental Challenges

• Reducing energy consumption and greenhouse gas emissions.
• Managing water resources effectively in a high-water-usage manufacturing process.
• Maintaining a safe and healthy work environment.
• Ensuring ethical and responsible supply chain practices.

Mitigation Strategies

• Implemented various energy-saving measures, including replacing old equipment with high-efficiency models and improving energy management systems.
• Established a rainwater harvesting system and improved process water recycling.
• Implemented a comprehensive occupational safety and health management system, including regular inspections, training, and emergency response plans.
• Developed a supplier risk assessment system to ensure compliance with environmental and social responsibility standards.

Supply Chain Management

Supplier Audits: 39 suppliers audited in 2014

Responsible Procurement

• Supplier Code of Conduct
• Risk Assessment of Suppliers (RAS)

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G4.0

Certifications: ISO 14001, OHSAS 18001, IECQ QC 080000, SA8000

Third-party Assurance: Bureau Veritas (BV)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Lead-free and halogen-free products

Awards & Recognition

• Energy Conservation Award (Excellent Award)
• Green Procurement Award
• Work-Life Balance Award
• Healthy and Happy Award

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Honored as the manufacturer in the Hsinchu Science Park that demonstrated excellent water-saving performance in 2015.
• Honored as a manufacturer of excellence that promotes green consumption and implements green procurement by the Environmental Protection Administration.
• Ranked in the top 5% of all suppliers by EcoVadis for three consecutive years.
• Reduced energy consumption and carbon emissions.
• Recycled and reused approximately 75.89% of total waste.

Social Achievements

• Awarded the “Excellent Healthy Workplace - Health Leadership Award” and won the Health Promotion Badge - Top Honor for an Accredited Healthy Workplace.
• Macronix Education Foundation fosters technology professionals by sponsoring the Macronix Golden Silicon Awards and Macronix Science Awards events for 15 consecutive years; these competitions have attracted over 20,000 teachers and students to participate.
• Established the “Suggestion Box” mailbox to answer employees’ questions.
• Publishing the “Macronix Garden” magazine quarterly.
• Set up printed copies and electronic bulletin boards to communicate information.
• Setting up Employee Relationship Management Portal to maintain good labor relations.

Governance Achievements

• Ranked in the top 5% of companies in the 2015 First Corporate Governance Evaluation for Listed and OTC Companies.
• The Taiwan Stock Exchange placed Macronix in the top 5 companies that received outstanding performance in the first corporate governance evaluation.
• Established independent director seats.
• Adopted candidate nomination system for electing directors.
• Replaced the supervisor system with Audit Committee.

Climate Goals & Targets

Environmental Challenges

• Taiwan experienced the worst drought since 1947.
• Communities surrounding Macronix Headquarters and the Fab 5 plant often report of strange smells.
• Potential impact of business disruption from major crises (natural disaster, fire disaster, water shortage, power outage, and raw material shortage).

Mitigation Strategies

• Macronix remained dedicated to promoting water conservation.
• Plants continue to cooperate with the Park’s requirements to report on complaints that are filed every month.
• Conducted a simulation of our Business Continuity Plan (BCP) involving ten major crisis and implemented a project for improving 15 risk items in order to reduce the potential impact of business disruption.
• Developed a Global Disaster Warning and Damage/Loss Reporting System.

Supply Chain Management

Supplier Audits: 95.6% of suppliers were rated 80 points or higher; 23 suppliers passed RAS in 2015.

Responsible Procurement

• Require suppliers to obtain international certifications such as ISO 9001, ISO 14001, and OHSAS 18001.
• Conduct annual on-site audits.
• Conduct performance evaluations on three dimensions: quality, costs, and delivery.
• Require suppliers to comply with RoHS directives, EU SVHC, international laws, and customer requirements.
• Prohibit the use of conflict minerals.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 Guidelines, AA1000 Assurance Standards (AA1000)

Certifications: SA8000 Corporate Responsibility Management Systems, ISO 14001:2004 Environmental Management System, IECQ QC080000 Hazardous Substance Process Management System, OHSAS 18001 Occupational Health and Safety Management Systems

Third-party Assurance: Bureau Veritas Certification (Taiwan) Co., Ltd.

Sustainable Products & Innovation

• Lead-free, halogen-free products that meet the requirements of SVHC.

Awards & Recognition

• EcoVadis Gold CSR Rating
• 2004 Distinguished Enterprise of Energy Conservation Award
• 14th Republic of China Corporate Environmental Protection Award
• Outstanding Award of Greenhouse gases Emissions Reduction
• 2007 Green Procurement Outstanding Award
• National Industrial Safety & Health Awards
• 2011 National Invention and Creation Award
• 2014 Work-Life Balance Award
• 2014 Award of Excellence in Energy Conservation
• Excellent Healthy Workplace
• Award of Gratitude for Safety and Health Guidance
• Health Promotion Badge - Top Honor for an Accredited Healthy Workplace
• Excellent Healthy Workplace - Health Leadership Award
• Outstanding Landscape Award (Macronix Park)
• Corporate Citizenship Awards (CommonWealth Magazine)
• CSR Awards (Global Views Monthly)

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Occupational Safety and Health
• Corporate Social Responsibility
• Supply Chain Management
• Human Rights
• Economic Performance
• Governance

Environmental Achievements

• Reduced water consumption by 75,100 tons compared to 2015.
• Achieved an 86.1% process water recycling rate.
• Received the “Outstanding Water-saving Manufacturer” award.
• Received the “Outstanding Energy-saving Manufacturer” award from the Ministry of Economic Affairs and Hsinchu Science Park.
• Reduced ammonia concentration in effluents by 80% compared to 2014.
• 76.1% of total waste was recycled and reused.

Social Achievements

• Established the Macronix Education Foundation, sponsoring science competitions and awarding over NT$90 million in scholarships.
• Implemented the Macronix H2O Corporate Wellness Program, focusing on health, happiness, and openness to life.
• Received the “Top Honor for an Accredited Healthy Workplace” award.
• Maintained harmonious labor relations with no labor disputes.
• Supported various employee clubs and activities.
• Organized numerous charity events, raising funds for various causes.

Governance Achievements

• Ranked among the top 5% of companies in the 2015 First Corporate Governance Evaluation.
• Maintained high corporate governance standards, complying with laws and regulations.
• Implemented a robust Code of Business Conduct and Ethics.
• Established an independent internal audit unit.
• Implemented a risk management mechanism to mitigate operational disruptions.

Climate Goals & Targets

Environmental Challenges

• Minimizing the environmental impact of operations.
• Managing risks that impact major operations (natural disasters, fire, water shortage, power outage, raw material shortage).
• Ensuring compliance with environmental and social regulations.
• Maintaining high employee satisfaction and retention.
• Balancing work and life for employees.

Mitigation Strategies

• Implemented energy and water conservation measures.
• Established an information security task force and implemented information security regulations.
• Conducted regular audits of suppliers to ensure compliance with CSR standards.
• Implemented a business continuity plan (BCP).
• Provided comprehensive employee assistance programs (EAPs).
• Offered various employee welfare benefits and activities.

Supply Chain Management

Supplier Audits: 97.9% of suppliers received a score of 80 or higher; 20 suppliers passed RAS in 2016.

Responsible Procurement

• Requiring suppliers to obtain ISO 9001, ISO 14001, and OHSAS 18001 certifications.
• Conducting annual supplier audits and providing counseling.
• Implementing a risk assessment of suppliers (RAS) system.
• Requiring suppliers to sign the “Supplier Corporate Social Responsibility and Business Ethics Consent”.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4.0, AA1000APS (2008)

Certifications: ISO 14001, OHSAS 18001, SA8000, IECQ QC 080000

Third-party Assurance: Bureau Veritas Certification (Taiwan) Co., Ltd.

UN Sustainable Development Goals

• Goal 1
• Goal 2
• Goal 3
• Goal 4
• Goal 5
• Goal 6
• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 11
• Goal 12
• Goal 13
• Goal 14
• Goal 15
• Goal 16
• Goal 17

Sustainable Products & Innovation

• Products complying with EU RoHS directives.
• Lead-free and halogen-free products.

Awards & Recognition

• Outstanding water-saving performer (Water Resources Agency, Ministry of Economic Affairs)
• Outstanding energy-saving performer (Ministry of Economic Affairs and Hsinchu Science Park)
• Top Honor for an Accredited Healthy Workplace (Health Promotion Administration, Ministry of Health and Welfare)
• Corporate Citizenship Awards (CommonWealth Magazine)
• CSR Awards (Global Views Monthly)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Greenhouse gas emissions declined by 17% compared to the base year, and the average annual reduction is 1.7%
• Produced 4.102 billion liters of reclaimed water, and the water recycling rate of all plants has reached 84.7%
• 11,113 metric tons of waste were recycled/reused, and the waste recycling/reuse rate was 97.2%
• The average removal rate of volatile organic compounds (VOCs) is 95.97%

Social Achievements

• Received the Excellent Business Unit in the Promotion of Work Equality in the Workplace – the High Distinction Award from the Hsinchu Science Park in 2021
• Built a five-star employee recreation and fitness center and invested NT$7.829 million in professional sports instructors and the maintenance of software and hardware equipment for the purpose of creating a friendly and safe leisure environment maintaining employees' physical and mental health; the Company has received the Taiwan i Sports Certification
• Purchased a NT$9.036 million group insurance for employees, which covers accidents, diseases, and cancer, and the employees are allowed to add their parents, spouses, and children as dependents for low-cost, self-pay insurance.
• The Company provides consistent, progressive training programs for different specialties and tiers; on average, every employee has participated in 21 sessions and has had 62.8 hours of training.
• The Company has established a charitable organization, which has combined the strength of both the employees and the public, to help the needy in every corner of the society; a total of 4,748 employees have participated in public welfare activities, and donations of NT$3.215 million have been made.

Governance Achievements

• Invested NT$438 million in environmental safety and health in 2021 and proactively committed itself to and developed the strategy for sustainable operations.
• The Company has introduced the framework of the Task Force on Climate-related Financial Disclosures (TCFD) and selected five risks and five opportunities for management in response to the risks and opportunities brought about by climate change.
• Received the 2021 National Occupational Safety and Health Enterprise Benchmarking Award from the Occupational Safety and Health Administration of the Ministry of Labor.
• Ranked in the Top 6%~20% in the Corporate Governance Evaluation

Climate Goals & Targets

Environmental Challenges

• Climate change risks (carbon taxes, low-carbon technology transition, cap & trade, sea-level rise, average temperature change)
• Supply chain disruptions due to various factors including climate events and potential risks from information system interruption, water outage, power outage, earthquake, and fire

Mitigation Strategies

• Greenhouse gas inventory and continuous tracking of carbon emissions
• Implementation of energy conservation plans
• Evaluation of reduction plans and participation in offset projects
• Assemble a renewable energy task force
• Emergency procurement procedures
• Safety stock preparation
• Supplier audits for business continuity planning
• Development of alternative suppliers
• Supply contracts with major suppliers
• Firewall and malware interception systems
• Regular software updates and endpoint protection
• Data backups
• Cyber-attack simulation drills
• Water conservation and drought preparation plans
• Water storage and mutual support between fabs
• Water restrictions emergency response drills
• Emergency power generators
• Diesel fuel resource distribution and procurement priority
• Abnormal power supply emergency response drills
• Seismic resistant design of buildings and machines
• Seismic resistance improvements
• Earthquake emergency response drills
• Fire prevention improvements
• Fire accident emergency response drills
• Green product management and compliance with regulations
• Conflict minerals policy and supplier management

Supply Chain Management

Supplier Audits: 33 audits in 2021

Responsible Procurement

• ISO 9001, ISO 14001, and ISO 45001 certifications for suppliers
• Supplier audits and counseling
• Supplier performance evaluations
• Compliance with RoHS directives, EU regulations on SVHC and ELVs, and international laws

Climate-Related Risks & Opportunities

Physical Risks

• Sea-level rise
• Average temperature change

Transition Risks

• Carbon tax
• Low-carbon technology transition
• Cap & trade

Opportunities

• Low-carbon products or services
• Adaptation and solutions
• Changes in customer behavior
• Find new business opportunities
• Production process improvements

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, AA1000AS

Certifications: ISO 14001, ISO 45001, IATF 16949

Third-party Assurance: Bureau Veritas Certification (Taiwan) Co., Ltd.

UN Sustainable Development Goals

• Goal 1
• Goal 2
• Goal 3
• Goal 4
• Goal 5
• Goal 6
• Goal 7
• Goal 9
• Goal 10
• Goal 11
• Goal 12
• Goal 13
• Goal 15
• Goal 17

Macronix's initiatives contribute to these goals through various ESG programs and community engagement activities.

Sustainable Products & Innovation

• Low-carbon products

Awards & Recognition

• 2021 National Occupational Safety and Health Enterprise Benchmarking Award
• 2021 EE Awards Asia - "Best Memory IC of the Year"
• 2022 Taiwan Excellence Gold Award
• 2021 Hsinchu Science Park Innovative Product Award
• Social Education Contribution Award (Macronix Education Foundation)
• 15th Arts and Business Awards - Permanent Award - Bronze Award (Macronix Education Foundation)

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Occupational Health and Safety
• Corporate Governance
• Social Welfare
• Climate Change
• Supply Chain Management
• Human Rights

Environmental Achievements

• Cumulative electricity savings of 33,913 MWh from 2018 to 2022
• Greenhouse gas emissions declined by 0.6% compared to the base year (2011)
• Produced 4.123 billion liters of reclaimed water, with a water recycling rate of 85.7%
• Recycled/reused 11,044 metric tons of waste, with a recycling/reuse rate of 97.7%
• Average removal rate of volatile organic compounds (VOCs) of 95.94%
• Passed ISO 14001 Environmental Management System Certification

Social Achievements

• Received the National Excellent Healthy Workplace – “Paradigm in Health Award” in 2022
• Allocated NT$55.003 million for employee welfare
• Built a five-star employee recreation and fitness center
• Provided an average of 65.7 hours of training per employee
• Made donations of NT$3.316 million to charity

Governance Achievements

• Established the “Sustainable Development Committee” to promote ESG matters
• Board of Directors approved the “Corporate ESG Policy”
• Passed the RBA VAP audit with excellent results
• Passed ISO 27001 information security management system certification
• Obtained 240 patents in 2022

Climate Goals & Targets

Environmental Challenges

• Global economic downturn impacting market demand
• Industry and customer inventory adjustments
• Climate change risks (transition risks from carbon taxes and low-carbon technologies, physical risks from average temperature changes and rising sea levels)
• Supply chain disruptions

Mitigation Strategies

• Implemented production reduction measures to control inventory levels
• Accelerated technology development
• Introduced the framework of the Task Force on Climate-related Financial Disclosures (TCFD)
• Developed alternative sourcing strategies for high-risk suppliers
• Implemented energy conservation plans
• Evaluated and implemented carbon reduction plans
• Invested in renewable energy sources

Supply Chain Management

Supplier Audits: 31 audits in 2022

Responsible Procurement

• Supplier management system certifications (ISO 9001, ISO 14001, ISO 45001)
• Supplier audits and counseling
• Supplier performance evaluation
• Compliance with RBA Code of Conduct
• Conflict minerals management

Climate-Related Risks & Opportunities

Physical Risks

• Average temperature change
• Sea-level rise

Transition Risks

• Cap & trade
• Carbon fees (tax)
• Low-carbon technology transition

Opportunities

• Development of low-carbon products/services
• Adaptation and solutions
• Finding new business opportunities

Reporting Standards

Frameworks Used: GRI Standards, AA1000AP(2018), TCFD, SASB

Certifications: ISO 14001, ISO 27001, IATF 16949:2016, ISO 45001, IECQ QC080000

Third-party Assurance: Bureau Veritas Certification (Taiwan) Co., Ltd.

UN Sustainable Development Goals

• Goal 1
• Goal 2
• Goal 3
• Goal 4
• Goal 5
• Goal 6
• Goal 7
• Goal 8
• Goal 10
• Goal 11
• Goal 12
• Goal 13
• Goal 14
• Goal 15
• Goal 16
• Goal 17

Macronix's initiatives contribute to these goals through various environmental, social, and governance programs.

Sustainable Products & Innovation

• Low-carbon products

Awards & Recognition

• EEAwards Asia Executive of the Year
• EEAwards Asia Featured Vehicle Electronics Solution Supplier
• EEAwards Asia Best Memory of the Year
• National Excellent Healthy Workplace – Paradigm in Health Award
• Excellence in Green Procurement Award
• Award of Excellence among outstanding enterprises in waste reduction and circular economy in Hsinchu Science Park

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Greenhouse gas emissions decreased by 4.5% compared with the previous year.
• Produced 3.821 billion liters of reclaimed water, and the factory water recycling rate of all plants has reached 87.03%.
• 9,875 metric tons of waste were recycled/reused, and the waste recycling/reuse rate was 97.7%.

Social Achievements

• Won the SGS 2023 Occupational Safety and Health Performance Management Plus Awards
• The Welfare Committee has allocated NT$43,261 thousand in total for employee welfare.
• Built a five-star employee recreation and fitness center
• The Company offers free early-stage lung cancer CT scans and heart CT scans, which has benefited 403 employees in total.
• Provided employees with 42,570 doses of Covid-19 rapid tests in 2023.
• The Company provides consistent, progressive training programs for different specialties and tiers; on average, every employee has participated in 22 sessions and has had 71.7 hours of training.
• Macronix Education Foundation scholarships have exceeded NT$180 million by the end of 2023.

Governance Achievements

• Macronix received the National Sustainable Development Award from the Executive Yuan
• Macronix’s automotive flash memory manufacturing obtained the "ISO 26262" Road vehicles – Functional safety and product compliance certifications.
• All of Macronix fabs, test building, and management centers have passed the IATF 16949:2016 standard certification of the International Automotive Task Force (IATF).
• Macronix obtained the “ISO/IEC27001:2013” information security management system certification in 2023.
• All plants of Macronix have obtained full score in the Validated Assessment Program (VAP) of the Responsible Business Alliance (RBA).

Climate Goals & Targets

Environmental Challenges

• downturn of the memory market
• destocking process was also extended, causing Macronix's consolidated revenue to decrease by 36% in 2023 compared with that of 2022, while the gross profit margin also dropped by 19.7 percentage points in comparison with 2023.

Mitigation Strategies

• persistently maintained the high-quality products and services to the best of its ability, proactively adjusted inventory and postponed certain capital expenditures.

Supply Chain Management

Supplier Audits: 33

Responsible Procurement

• Supplier management system certifications (ISO 9001, ISO 14001, ISO 45001)
• Supplier audits and counseling
• Supplier performance evaluation
• Code of Conducts Compliance Certificate

Climate-Related Risks & Opportunities

Physical Risks

• Average temperature change
• Sea-level rise

Transition Risks

• Cap & trade
• Carbon fees (tax)
• Low-carbon technology transition

Opportunities

• Low-carbon products/services
• Changes in customer behavior
• Adaptation and solutions
• Find new business opportunities
• Resource efficiency

Reporting Standards

Frameworks Used: GRI, TCFD, SASB

Certifications: ISO 14001, ISO 45001, ISO 26262, ISO/IEC27001, IATF 16949

Third-party Assurance: Bureau Veritas Certification (Taiwan) Co., Ltd. (BVC)

UN Sustainable Development Goals

• Goal 1
• Goal 2
• Goal 3
• Goal 4
• Goal 5
• Goal 6
• Goal 7
• Goal 8
• Goal 10
• Goal 11
• Goal 12
• Goal 13
• Goal 14
• Goal 15
• Goal 16
• Goal 17

Macronix's initiatives contribute to these goals through various programs and activities detailed in the report.

Sustainable Products & Innovation

• ArmorFlash
• 1.2V SPI NOR flash
• OctaFlash
• 3D NAND Flash

Awards & Recognition

• National Sustainable Development Award
• EE Awards Asia Best Memory of the Year
• SGS ISO Plus 2023 Occupational Safety and Health Performance Management Award
• Arts and Business Awards (bronze award)