Our Focuses｜Climate Change Management｜Climate Risk Management

Climate Change Management

Winbond embraces the vision of being an "Be a hidden champion in providing sustainable semiconductors to enrich human life". In response to international guidelines and domestic policies geared towards green sustainability, Winbond has implemented the Task Force on Climate-related Financial Disclosures (TCFD) framework to assess the potential climate change risks and opportunities as the basis for promoting climate mitigation and adaptation actions, enhancing the company's operational resilience.

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SDGs

The Winbond Group's greenhouse gas reduction targets were officially validated by the Science Based Targets initiative (SBTi) on January 8, 2026

Establish nine Climate-Related Management Metrics

Climate Governance

Climate Risk Management

Scenario Analysis

Mitigation and Adaptation Measures

Metrics and Targets

Climate Risk Management

Risk Management Framework

Winbond’s Board of Directors serves as the Company's highest authority for risk governance and decision-making. Under the Board, the Risk and Information Security Management Committee has been established. Through existing organizational departments and risk ownership units, the Company formulates sound internal management policies and operating procedures within the scope of each unit’s responsibilities to carry out effective risk management.
Winbond's risk management procedures encompass five key elements: risk identification, risk analysis, risk assessment, risk response, and monitoring and review mechanisms. For further details please refer to Risk Management under Corporate Governance.

Climate-related Risk and Opportunity Identification Process

In 2025, Winbond convened senior executives from the parent company and subsidiaries to identify key climate-related risks and opportunities. In accordance with the TCFD risk classification framework, climate-related risks were categorized into transition risks and physical risks. These risks and opportunities were evaluated based on impact magnitude, likelihood of occurrence, and time horizon, resulting in the development of climate risk and opportunity matrices. The assessment results were approved by the CSO and reported to both the ESG Committee and the Board of Directors.

Climate Risk and Opportunity Matrices

Major Climate Change Impacts and Responses

Major Climate Risks

Climate risk	Timeframe of impact	Impact boundary	2025 / potential financial or operational impacts	Response measures
Increased operating costs due to SBTi alignment	Short-term / Medium-term	Own operations	Increased operating expenses and capital expenditures associated with decarbonization actions²	Implement decarbonization measures, including process improvements, replacement of energy-efficient components, and energy-saving projects Procure and invest in renewable energy Install on-site renewable energy generation systems Actively develop low-carbon and energy-efficient products to reduce use-phase emissions Collaborate with key suppliers on carbon inventories, target setting, and improvement actions
Rising carbon fee levels	Short-term / Medium-term / Long-term	Upstream Own operations Downstream	Increased carbon fees and operating costs¹ Additional operating expenses and capital expenditures for decarbonization actions² Cost pass-through from upstream suppliers	Establish a carbon accounting system to effectively manage emissions data Apply for and implement voluntary reduction programs to lower applicable rates Implement decarbonization measures and energy-saving projects Procure and invest in renewable energy Install on-site renewable energy generation systems Participate in carbon credit markets and monitor offset mechanism developments
Power supply instability	Short-term	Upstream Own operations Downstream	Production losses or equipment downtime due to power disruptions Increased operating costs for maintaining backup power systems³	Install emergency generators and uninterruptible power supply systems, with regular maintenance
Water scarcity	Short-term	Upstream Own operations Downstream	Capacity constraints due to restricted water intake during prolonged shortages Higher water procurement costs from alternative sources Increased operating and capital expenditures for water management and backup systems⁴	Maintain backup water reservoirs Identify alternative water sources or deploy water trucks during rationing periods Implement water conservation and recycling measures to enhance efficiency
Tropical cyclones	Short-term	Upstream Own operations Downstream	Increased labor costs due to overtime payments required to maintain production operations during typhoon leaves⁵ Potential asset damage and operational disruptions at company and supplier facilities Potential long-term increases in catastrophe insurance premiums	Increase production automation to reduce manual operations Use digital tools to enhance remote working efficiency Promote disaster preparedness measures among suppliers, including facility reinforcement and drainage improvements Establish 24-hour emergency response teams and monitor supplier locations for disaster impacts
Financial impacts and management costs arising from the climate risks in 2025：
Estimated carbon fees: NT$17 million Greenhouse gas emission reduction initiatives -Capital expenditures on energy-saving and carbon reduction equipment: NT$332 million, resulting in depreciation expenses of NT$20 million. -Energy-saving and carbon reduction expenses: NT$151 million. -Additional costs for renewable energy procurement and supply chain green electricity promotion: NT$125 million -New renewable energy investments: NT$69 million -Capital expenditures for on-site renewable energy generation systems: NT$4 million -Maintenance costs for on-site renewable energy generation systems: NT$1 million -Supplier decarbonization guidance and activity expenses: NT$0.4 million Maintenance costs for emergency generators and uninterruptible power systems: NT$54 million, with depreciation expenses of NT$66 million Water resource system maintenance costs: NT$228 million, with depreciation expenses of NT$250 million Increased labor costs due to typhoon leaves: NT$11 million

Major Climate Opportunities

Climate opportunity	Timeframe of impact	Impact boundary	2025 / potential financial or operational impacts	Response measures
Green product R&D	Medium-term / Long-term	Upstream Own operations Downstream	Enhanced product competitiveness and expanded market with sustainability and low-carbon requirements Continued R&D investment requirements	Continue developing high-performance, low-energy-consumption green products to meet market demand
Development of renewable energy (RE) products	Short-term / Medium-term / Long-term	Upstream Own operations Downstream	Meeting customer demand for RE products supports order retention and revenue growth¹ Increased operating costs from using green electricity during manufacturing, packaging and testing³	Procure and invest in renewable energy Install on-site renewable energy generation systems Promote RE products and develop new customers with demand for RE products
Development of low-carbon technologies	Medium-term / Long-term	Upstream Own operations Downstream	Reduced carbon intensity in manufacturing to meet low-carbon supply chain requirements² Process optimization improves production efficiency and reduces operating costs Ongoing process R&D investment requirements	Develop low-carbon-footprint process technologies Collaborate with the supply chain to reduce emissions during packaging and assembly stages
Due to the implementation of the aforementioned measures, the estimated management costs for 2025 are as follows：
Revenue from RE products: NT$3,906 million Revenue from Sustainable Economic Activities: NT$59,317 million Management costs related to additional costs for renewable energy procurement and supply chain green electricity promotion, renewable energy investments, and the construction and maintenance of on-site renewable energy generation systems are detailed in Major Climate Risks