Our Focuses｜Corporate Governance｜Green Investment
Corporate Governance
“Business integrity” is the foundation of the sustainable operation of the enterprise, and it is the highest corporate culture and spirit of Winbond. Winbond is committed to formulating comprehensive corporate governance regulations and management processes, and continuously monitoring and improving processes. With the efforts of all colleagues, Winbond has been ranked in the top 20% since the first TWSE Corporate Governance Evaluation. Moving forward, we will continue to embrace a corporate culture founded on business integrity, establishing a trustworthy and reputable company.
Renewable energy investment
955
million
International Voluntary Carbon Credits
13500
tons of CO2e
Integrity and ethics education and training for all directors and employees
100
%
Green Investment & Sustainability-Linked Loan
The whole world is facing the impact of climate change. As one of Taiwan’s intensive electronics industry, we set up a green investment management unit to achieve the goal of green investment and create long-term value for investors and shareholders.
Green Investment Management Unit
As the basic operating unit, the Finance Department further submits relevant proposals to the board of directors for resolution, and the board of directors to participate in relevant decision-making together.
Responsibility
Assess the environmental, social and governance risks of investment projects, ensure that projects meet sustainable development goals, and make sustainable investment decisions.
In 2022, Winbond carried out a comprehensive renewable energy usage plan for the future electricity consumption of the enterprise itself, and had an in-depth understanding of the status of various types of renewable energy industries and whether they could be applied to Winbond’s electricity usage. Apart from establishing on-site solar photovoltaic systems to create a renewable energy source, Winbond has also invested in the renewable energy development company, CHIA-HO Green Energy Co., Ltd., in 2022, to participate in solar photovoltaic field development, marking a significant first step towards a net-zero emissions pathway.
Winbond successfully completed its first renewable energy procurement in 2023, with an estimated annual generation of nearly 10 million kwh of renewable energy. This surpasses the electricity consumption of Winbond non-production facilities within Taiwan service locations. By taking practical actions, Winbond contributes to mitigating climate change and simultaneously enhances the company’s operational resilience.
Green Investment
NT$9.55 billion renewable energy investment plan
Cumulative investment in renewable energy development from 2022 to 2023, continuing collaboration and communication with green industry suppliers.
Investment in Green Energy
In May 2022, Winbond acquired a 15% equity in CHIA-HO Green Energy Corporation for NT$555 million, whose main business is to develop solar energy fields. Considering that its parent company, Taiwan Cement Corporation, has valuable practical experience in the renewable energy industry. It will bring positive benefits to Winbond in fulfilling its corporate sustainable development goals, and help Winbond obtain part of the renewable energy electricity needed to move towards net-zero emissions goals.
In November 2023, Winbond announced its participation in the joint establishment of Kai-Hong Energy Co., Ltd., with an investment of NT$400 million. Kai-Hong Energy’s primary business involves investing in solar power generation and wind power generation infrastructure projects in Taiwan. Winbond’s involvement in this joint venture not only aligns with the global and Taiwan 2050 net-zero goals, but also demonstrates its proactive engagement in green energy development. Apart from contributing to the company’s net-zero emissions target through renewable energy, Winbond is progressively fulfilling its commitment to sustainable development.
As of April 2024, the Board of Winbond has approved a cumulative NT$955 million in renewable energy investment plan. Going forward, Winbond will continue to seek suitable targets for green energy investment, laying the foundation for achieving net-zero emissions goal.
International Voluntary Carbon Credits
A total of 13,500 tCO2e carbon credits
have been obtained since 2022 from voluntary carbon credit projects in 9 countries across Asia and Africa, creating diverse sustainable benefits.
In response to the global carbon neutrality trend and the 2050 net-zero goal, Winbond not only joined Singapore's global carbon exchange Climate Impact X (CIX) in 2022 and continued to participate in international carbon trading, but also became one of the first international carbon credits purchasers on Taiwan Carbon Solution Exchange (TCX) in 2023. By the end of 2023, Winbond had cumulatively obtained 13,500 metric tons of voluntary carbon credits from 9 countries in Asia and Africa.
The carbon credits obtained by Winbond are issued by international independent organizations such as Verra or Gold Standard. These credits cover various areas, including nature conservation, high-efficiency stoves, clean water sources, solar power generation, and wind power generation. The goal is not only to offset the company’s own carbon emissions through carbon trading but also to achieve diverse sustainable benefits, such as protecting terrestrial and marine ecosystems, restoring water-related ecosystems, promoting investment in energy infrastructure and clean energy technology, and respecting the rights of local residents. Winbond’s carbon credit projects align with 16 out of the 17 United Nations Sustainable Development Goals (SDGs).
While focusing on the semiconductor industry, Winbond also dedicates continuous and stable resources to participating in global carbon reduction initiatives, contributing to the sustainable survival and development of our planet.
The carbon credit projects include international voluntary carbon credit initiatives related to nature conservation, high-efficiency stoves, clean water sources, solar power generation, and wind power generation.
Carbon Credit Investment Story
Delta Blue Carbon – The world largest blue carbon project
The Delta Blue Carbon - 1 project (DBC-1) is a reforestation and restoration project of mangroves and wetlands in the Indus Delta region of Pakistan. The project covers an area of 350,000 hectares and is expected to reduce carbon emissions by more than 142 million tons of carbon dioxide equivalent during the 60-year project period from 2015 to 2075.
The Indus Delta consists of a richly landscaped system of channels, low-lying islands, intertidal zones and mangroves. The mangroves here are the largest arid climate.
Mangroves in the world and lie on the main migration routes of thousands of bird species. In recent years, the major inducement for mangrove deforestation in the region has been the use of mangroves as a source of fuelwood, fodder, and pasture for grazing, etc. Over 42,000 people live in the 60 coastal villages within the project area, over 70 percent of whom live below the poverty line, with many communities lacking access to clean drinking water, basic education, sanitation and sanitary facilities, and relying on agriculture as their primary income source; the depletion of freshwater has increased the salinity of mangrove and delta soils, and agricultural and coastal fisheries have gradually reduced their yields.DBC-1.
The DBC-1 project hopes to alleviate these problems and prevent biodiversity loss in this critical biodiversity area by regenerating mangroves and controlling the causes of mangrove deforestation and degradation, which will be achieved
Image Source: Photo courtesy of Delta Blue Carbon ProjectWhy Blue Carbon
Blue carbon typically occurs in coastal wetlands dominated by mangroves, salt marsh plants, and seagrass. These wetlands, similar to terrestrial forests, store carbon through biomass. However, their uniqueness lies in their ability to capture mobile carbon from upstream sources, acting like a filtering system that captures carbon in vast river
deltas. Thanks to this dual carbon capture process, coastal wetlands remove carbon at a rate forty times faster than terrestrial forests. The blue carbon project is currently one of the most effective and valuable carbon removal systems. Additionally, coastal wetlands contribute to protecting the surrounding environment from the numerous impacts
of climate change.
| Verification | Location | Type |
| VCS-2250 (CCB) | Pakistan | Removals Afforestation, reforestation, and rehabilitation (ARR) Wetland restoration and conservation (WRC) |
| Year of Issue | Regional Area | Expected Annual Carbon Reduction |
| 2016-2021 | 350,000 Hectares | 2,407,629 tCO2e |
Protect and restores 350,000 ha in the Sindth Indus Delta Region
|
Expected to remove 142 million tCO2 over the project’s 60-year lifetime |
Over 42,000 residents are benefits
|
400 people daily are provided with clean drinking water through the rehabilitation and management of reverse osmosis plants |
15,100 people benefit from the health condition improved by this project
|
34,600 people benefits from the increasing fishing |
Sustainability-Linked Loan and Sustainability Fixed Deposits
Achieve sustainability indicator performance
Sustainability-Linked Loan
Winbond signed a NT$20 billion Sustainability-Linked Loan in April 2023, incorporating specific sustainability indicators such as carbon reduction, power saving, and corporate governance into condition assessments, regularly checking the performance of actual sustainability indicators, and connecting the performance to interest rate reduction. In June 2023, the bank confirmed that Winbond has achieved the annual sustainability indicator performance, and the interest reduction conditions would be applied to subsequent drawdowns until the next annual review time. Winbond also regularly tracks the achievement of various indicators within the company to ensure the implementation of sustainable actions and move towards the goal of sustainable finance together with the banking group.
Sustainability Fixed Deposits
In response to the international sustainability trend, Winbond has progressively engaged in sustainable development time deposits with banks since 2023, with a minimum deposit period of at least 3 months. The funds are lent by the bank to other companies for use in green financing projects that comply with regulations or to support green industries such as investments and financing for renewable energy or solar power plants. Winbond’s participation in diverse channels of sustainable finance further demonstrates its commitment to sustainable development.