Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Environmental Protection
• Social Responsibility

Environmental Achievements

• Water consumption in 2014 was 3% less than that of 2013.
• 16-nanometer projects in 2014 increased 4 times and reached an energy saving efficiency of 70%.
• Reduced CO2 emissions by 17 tons compared to 2013 (electricity consumption) and 17 tons less compared to 2013 (water consumption).

Social Achievements

• Recruited 94 new employees.
• Awarded “the Top 5% companies” in the 1st Information Disclosure Assessment and Evaluation of Listed Companies by Taiwan Stock Exchange and GreTai Securities Market.
• Cooperated with local NPO, Hsinchu Blind Welfare Association.
• Implemented a water saving management project.

Governance Achievements

• Established an EICC Committee to draw up an Electronics Industry Code of Conduct.
• GUC was awarded “the Top 5% companies” in the 1st Information Disclosure Assessment and Evaluation of Listed Companies by Taiwan Stock Exchange and GreTai Securities Market.
• GUC was rated “A++” in the 12th Information Disclosure Assessment and Evaluation of Listed Companies by Taiwan Stock Exchange and GreTai Securities Market.

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• EICC Code of Conduct; GUC’s Hazardous Substance Restriction; requirements for new product suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G4 Sustainability Reporting Guidelines

Certifications: IECQ EV080000 Restriction of Hazardous Substances (RoHS)

Third-party Assurance: British Standards Institution (BSI)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Energy-saving products through advanced nanotechnology; DDR4 IP on 16-nanometer FinFET+ process technology

Awards & Recognition

• Most Outstanding Landscape Award and Best Environmental Protection Award (Hsinchu Science Park Administration); Sony Green Partner; compliant with IECQ EV080000 RoHS

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Environmental Benchmarks
• Employee Care
• Social Participation
• Corporate Governance

Environmental Achievements

• Reduced power consumption by 20-50% in 7nm/16nm HBM2-2.4G PHY+Controller compared to 28nm.
• Reduced power consumption by 12-80% in 7nm/16nm TCAM IP compared to previous generation.
• Achieved zero accidents.
• Water saving of 1,257 degrees in 2018 compared to 2017.

Social Achievements

• Donated 15 computers and 20 monitors to the Youth Care Center.
• 99 employees participated in blood donation.
• Purchased massage services from Hsinchu Blind Welfare Association.
• Participated in Accton Cultural & Educational Foundation's Christmas Dreams project.

Governance Achievements

• Awarded “the Top 5% companies” in the Corporate Governance Evaluation of Listed Companies by Taiwan Stock Exchange for five consecutive years.
• Awarded “A++” for four consecutive years in the Information Disclosure Assessment and Evaluation of Listed Companies by Taiwan Stock Exchange.
• Awarded the “Perseverance Excellence Award” by the British Standards Association (BSI) in 2018.
• Established an effective corporate governance structure with an Audit Committee and a Compensation Committee.

Climate Goals & Targets

Environmental Challenges

• Increased power consumption due to the addition of 300 high-performance servers (9.6% increase).

Mitigation Strategies

• Implemented energy-saving measures such as replacing LED energy-saving tubes, implementing a cloud office system, and reducing travel frequency.
• Improved energy intensity despite revenue growth.

Supply Chain Management

Responsible Procurement

• RBA Code of Conduct
• Requirement for suppliers to meet GUC’s environmental requirements
• Use of recycled materials by suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards

Certifications: IECQ EV080000 Restriction of Hazardous Substances

Third-party Assurance: British Standards Institution (BSI)

Sustainable Products & Innovation

• 7nm/16nm HBM2-2.4G PHY+Controller (reduced power consumption)
• 7nm/16nm TCAM IP (reduced power consumption)

Awards & Recognition

• Top 5% companies in Corporate Governance Evaluation (5 consecutive years)
• A++ in Information Disclosure Assessment and Evaluation (4 consecutive years)
• Perseverance Excellence Award from BSI

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Environmental Benchmarks
• Employee Care
• Social Participation
• Corporate Governance

Environmental Achievements

• Electricity usage decreased 4.6% compared with the previous year.
• Water saving is 2,198 degrees in 2019.
• Invested NT2, 060 thousand to replace energy-saving tubes, new equipment with high-efficiency and low-energy and operating time adjustment of high-energy equipment, saving 190,235 degrees and reducing CO2 emissions by 106 tons per year.
• Water conservation measures were implemented to save a total of 777 metric tons of water and a total of 31,334 kg of recycling for hazardous waste.
• Completed development of low power consumption 7nm Pipeline TCAM IP. This IP can be widely used in networking equipment, like IP switch router and data center. And it will significantly increase the efficiency of advanced chips by more than 2GHz. The power consumption can be reduced by 10%~40% because of its flexible design, which is really helpful for environmental energy saving.

Social Achievements

• Donated 114 computers to Triple E Institute and 44 notebooks to Engineers without Borders in 2019.
• Actively participate in public welfare projects and make contribute to the society
• Average score of customer service satisfaction is 97 points in 2019.

Governance Achievements

• GUC was listed in the Taiwan High Compensation 100 Index for six consecutive years.
• GUC was awarded “the Top 5% companies” in the first to sixth Corporate Governance Evaluation of Listed Companies by Taiwan Stock Exchange.
• Established the “Corporate Social Responsibility Promotion Committee”

Climate Goals & Targets

Environmental Challenges

• Diminishing of bitcoin and a general industry DoI correction resulting in decreased net sales and profit.
• Extreme climate causes drought or floods, which will cause water problems in production
• If the carbon footprint of exported goods in Taiwan meet European and American regulations.
• Carbon costs increase due to climate change

Mitigation Strategies

• Actively promote various environmental protection, energy saving and carbon reduction measures, reduce greenhouse gas emissions, increase the use of green energy, etc., in order to mitigate and adjust the operational impact of climate change
• Prepare a supplier plan responder to abnormal climate to reduce greenhouse gas emissions from suppliers.
• Green R&D design and green production is required- no environment pollution, no harmful materials to environment, and improving resource utilization
• Establish a green image of the enterprise by marketing activities, guide consumers to re-identify the brand value, and promote the sales of green products, and develop green market capacity.

Supply Chain Management

Supplier Audits: Irregular

Responsible Procurement

• Suppliers are required to follow RBS regulations, by declaration or signing.
• Conflict Minerals /Request a supplier declaration or signing
• Code of Business Conduct& Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather, drought, floods

Transition Risks

• Carbon costs increase due to climate change
• If the carbon footprint of exported goods in Taiwan meet European and American regulations

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001, ISO 9001, IECQ EV080000 Restriction of Hazardous Substances certifications

Third-party Assurance: British Standards Institution (BSI)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• 7nm/5nm HBM3.2Gbps PHY+Controller (HBM2E)
• 7nm/16nm low power consumption TCAM IP

Awards & Recognition

• Listed in the Taiwan High Compensation 100 Index for six consecutive years
• Awarded “the Top 5% companies” in the Corporate Governance Evaluation of Listed Companies by Taiwan Stock Exchange for six consecutive years

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Economic Performance
• Environment Protection
• Social Prosperity
• R&D Innovation
• Climate Change
• Supply Chain Management
• Human Rights

Environmental Achievements

• Electricity consumption reduced by 4.6% compared to last year
• Water consumption reduced by 2,198 thousand liters/year compared to last year
• 5nm/7nm HBM2E 3.2Gbps PHY+Controller silicon-proven in TSMC in 2019, efficiency improved by 30% compared to HBM2.0
• Development of low power consumption 5nm Pipeline TCAM IP completed, power consumption reduced by 10%~40%
• 100% recyclable packaging

Social Achievements

• Donated 53 computers and 23 LCD screens to the Triple E Institute
• Average employee training hours: 6.3 hours
• ISO 45001 certified in 2020
• Zero accidents

Governance Achievements

• Awarded "Top 5% Companies" in the first to seventh Corporate Governance Evaluation of Listed Companies by the Taiwan Stock Exchange for seven consecutive years
• Established internal Ethics Code of Conduct
• Established Audit Committee and Compensation Committee

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impact on global finance markets and the world economy
• Climate change risks (transition risks, technology risks, physical risks)
• Potential supply chain disruptions due to climate events

Mitigation Strategies

• Implemented preventative measures against COVID-19 (e.g., work from home, health monitoring, visitor control)
• Developed strategies to mitigate climate-related risks (e.g., energy conservation projects, green R&D design, alternative technologies)
• Established a supplier evaluation system and RBA requirements to ensure supply chain sustainability

Supply Chain Management

Supplier Audits: Irregular

Responsible Procurement

• Code of Conduct - Responsible Business Alliance
• GUC Hazardous Substance Restriction
• Guidelines on GUC Supplier Verification
• RoHS Directive 2011/65/EU compliance
• REACH compliance

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather (drought, floods)
• Inconsistent room temperature affecting equipment

Transition Risks

• Policy and regulation changes
• Technology changes

Opportunities

• Development of energy-efficient products
• Development of 5G related business
• Development of AI market share

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 45001, ISO 9001

Third-party Assurance: British Standards Institution (BSI)

UN Sustainable Development Goals

• SDG 2
• SDG 3
• SDG 4
• SDG 6
• SDG 9
• SDG 12
• SDG 13

GUC's technologies and services contribute to these SDGs through applications in agriculture, healthcare, education, water management, infrastructure, sustainable production, and climate change mitigation.

Sustainable Products & Innovation

• Low power consumption 5nm Pipeline TCAM IP
• Energy-efficient products

Awards & Recognition

• Top 5% Companies in Corporate Governance Evaluation for seven consecutive years