Our Focuses｜Nature-based Solutions｜

Nature-based Solutions

To achieve net-zero targets, Winbond has begun researching strategies to remove carbon dioxide from the atmosphere. Scientists have discovered that capturing and storing carbon dioxide from the atmosphere is essential for reaching net-zero emissions. It can be stored through means such as in soils, the ocean, and rocks. Winbond has been researching nature-based solutions and, through industry-university collaboration and tripartite collaboration between industry, government, and academia, we have implemented tree planting and adoption, invested in blue carbon projects, and engaged in conservation and breeding of tree species. These approaches contribute to the removal of carbon dioxide from the atmosphere while protecting biodiversity.

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SDGs

Afforestation and Reforestation Carbon Reduction Program estimated to remove at least

10000

tCO₂e

Investing in the world's largest blue carbon project, expected to reduce carbon emissions by more than

142

million tCO₂e

Conservation and Breeding Program of Tree Species

species of Theaceae plants

Biodiversity

Life on Land

Nature and Biodiversity

Winbond recognized that preserving ecosystems and the natural environment was key to advancing sustainable development. In recent years, climate-related risks had become a focal point for stakeholders, and biodiversity loss had gradually emerged as a critical issue with significant impact.
In response to the Global Goal for Nature and biodiversity-related topics, Winbond proactively adopted the assessment methodology proposed by the Taskforce on Nature-related Financial Disclosures (TNFD). In collaboration with the Chung-Hua Institution for Economic Research, Winbond followed the four-step LEAP approach—Locate, Evaluate, Assess, and Prepare—to gain deeper insights into the interdependencies between its Taiwan fabs and surrounding ecosystems. Through systematic analysis, Winbond identified nature-related risks and opportunities, integrated them into its Enterprise Risk Management (ERM) framework, and enhanced its risk control capabilities to ensure operational stability, safeguard stakeholder interests, and address the company’s reliance and impact on natural resources. Winbond further developed biodiversity conservation strategies. To mitigate environmental impacts from operations, Winbond committed to reducing its influence on nature through green product innovation and science-based carbon reduction. The company promoted biodiversity conservation and reforestation initiatives to take responsibility for alleviating its impact on the broader ecological environment. Internally, Winbond called on its value chain and operational sites to prevent deforestation, and continued to plan for avoidance, minimalization, and restoration measures. Nature-based Solutions (NbS) were systematically introduced to pursue the shared goals of No Net Loss and Net Positive Impact, striving to balance technological advancement with ecological preservation.

Locate Analysis: Identifying Nature-Sensitive Hotspots

Winbond conducted a "Locate Analysis" for its operational sites in Taiwan, beginning with the identification of areas with higher nature sensitivity. This facilitated subsequent evaluations of each site's dependence on and impact on nature, followed by risk and opportunity assessments. The evaluation process focused on operational sites and assessed nature sensitivity based on "location sensitivity" and "species sensitivity." It preliminarily identified the potential dependencies and impacts of operational activities on the natural environment and prioritized sites for further assessment accordingly.

Location Sensitivity Analysis: Geographic overlay operations were performed using the "TGOS Geographic Information System" and the "National Ecological Green Network" to examine key statutory sensitive area layers, referencing data from the "IUCN World Database on Protected Areas." The analysis incorporated domestic conservation regulations such as the National Park Act and the Wildlife Conservation Act, and integrated government-announced ecological sensitive zones, conservation policies, and species hotspot data. This established a locally applicable and internationally aligned sensitivity assessment framework, enhancing the precision and credibility of the evaluation.
Species Sensitivity Analysis: Conducted via the Ministry of Agriculture’s "Taiwan Biodiversity Network (TBN)" and "Taiwan Biodiversity Information Access (TBIA)," the analysis investigated the presence of protected, endangered, or critical species within a 2-kilometer radius of each operational site. Evaluation criteria included species listed under the Wildlife Conservation Act and the national red list, with higher-level classifications used for categorization and scoring to ensure representativeness and accuracy of the results.

Locate Analysis Evaluation Process

Location Sensitivity Analysis

Evaluate Analysis: Screening of Dependency and Impact Factors

For the identified operational sites during the Locate phase, Winbond further assesses the organization's dependence on natural capital and ecosystem services within its operational activities, along with potential impacts, based on industry characteristics, departmental functions, and activity specifics. Utilizing the ENCORE tool, factors related to natural dependencies and impacts associated with operational activities are screened and selected. The results indicated high dependency on water resources, climate regulation, and supporting services. Key impact topics included waste management, greenhouse gas and air pollutant emissions, and the use of freshwater and marine resources.

Dependency Factors

Impact Factors

Category	Dependency Factor	Description of Dependency
Supply Services	Water Supply Services	Water resources were critical to manufacturing needs and served as a core element in ensuring wafer production. During drought periods, water shortages could lead to the need for more costly alternative sources or reduced production, resulting in increased operating costs or decreased revenue, posing physical risks with negative financial impacts. In terms of environmental safety, large volumes of water were used only during emergency responses, such as cooling, firefighting, or pollutant dilution. These water sources were regulated by fire safety laws and were not part of routine daily usage.
Regulating Services	Storm Mitigation Services	Storms could cause equipment damage, construction safety risks, and work stoppages. Storm mitigation services helped reduce these impacts.
	Global Climate Regulation Services	Winbond relied on global climate regulation services to ensure stable electricity and water resources. Disruptions in climate regulation increased the likelihood of extreme weather, potentially affecting power equipment stability, water shortages, or declining water quality, leading to production interruptions or disruptions and higher operating costs.
	Rainfall Pattern Regulation Services	Unstable rainfall, insufficient reservoir storage, or declining groundwater levels during drought periods could necessitate the use of more expensive alternative water sources or reduced production, resulting in increased operating costs or reduced revenue, posing physical risks with financial impacts.
	Local Climate Regulation Services	Climate change-induced high temperatures increased electricity and water demand. Prolonged heat could trigger droughts and wildfires, affecting employee productivity and health. Abnormal temperature rises or fluctuations increased risks of equipment failure, electricity load, fire safety pressure, and employee health issues.
	Air Filtration Services	Deteriorating air quality increased the replacement frequency of cleanroom consumables, raising costs and negatively impacting employee health. Winbond’s fabs were equipped with high-efficiency filtration and HVAC control systems. Surrounding greenery, trees, and wetlands provided natural filtration before air entered the fab, reducing system load.
	Solid Waste Remediation Services	Various types of solid waste were generated during manufacturing processes (e.g., chemical containers, electronic components, expired or damaged materials). Residuals after treatment relied on ecosystems to convert them into low-risk substances, mitigating environmental impacts.
	Water Purification Services	Water quality played a critical role in semiconductor manufacturing. During droughts, eutrophication of reservoirs or high particle concentrations in water could degrade water quality, increasing the burden of water treatment. Winbond generated wastewater during manufacturing and relied heavily on natural water purification services.
Supporting Services	Disease Control Services	Employee absenteeism due to epidemics or disease outbreaks posed challenges to workforce management.
Supporting Services	Atmospheric and Ecosystem Dilution	Winbond emitted greenhouse gases and hazardous gases during manufacturing. After mitigation treatment, the company relied on atmospheric and ecosystem dilution.

Category	Impact Factor	Description of Potential Impact	Mitigation Measures
Climate Change	Greenhouse Gas Emissions	Semiconductor manufacturing was energy-intensive. Winbond needed to meet electricity demand to support manufacturing, wastewater treatment, and water supply facilities. Greenhouse gas emissions exacerbated global warming and increased the risk of extreme weather. The current electricity sources were mostly non-renewable, resulting in higher emissions.	Winbond installed greenhouse gas treatment equipment to reduce emissions, implemented energy-saving measures, and improved energy efficiency. The company collaborated with suppliers to reduce carbon emissions and adopted renewable energy.
Land, Freshwater, and Marine Use Changes	Freshwater Ecosystems	Winbond generated contaminated wastewater during manufacturing, which had significant impacts on river ecosystem functions.	Wastewater was first treated in-house and then transferred to the science park’s wastewater treatment plant for final processing. Discharge was conducted only after meeting regulatory standards, resulting in minimal impact on freshwater and marine ecosystems.
Land, Freshwater, and Marine Use Changes	Marine Ecosystems	Winbond generated contaminated wastewater during manufacturing, which had significant impacts on marine ecosystems.
Pollution / Pollution Removal	Non-GHG Emissions	Winbond emitted PM2.5 and volatile organic compounds (VOCs) during energy use, vehicle operations, and semiconductor processes. These pollutants posed potential risks to the environment, air quality, and human health, and affected plant growth.	Pollutants were collected via sealed pipelines and treated using thermal oxidizers (TO). Emissions were released into the atmosphere only after meeting regulatory standards.
	Generation and Disposal of Solid Waste	Winbond generated various types of solid waste during production, such as chemical containers, electronic components, and disposable materials, which could impact the environment. Large volumes of commercial and general waste were generated during operations and required qualified disposal vendors to mitigate environmental impacts.	Winbond engaged qualified waste disposal vendors to properly manage waste and reduce environmental impacts, and implemented a waste management system in compliance with regulations.
	Discharge of Toxic Pollutants into Water and Soil	Winbond’s manufacturing processes generated toxic pollutants such as heavy metals. Direct discharge without treatment would severely impact the environment.	Pollutants were collected based on their characteristics and treated in-house or by qualified vendors to ensure no harm to aquatic or terrestrial ecosystems.
Resource Use / Replenishment	Extraction of Other Non-Biological Resources	Wafer manufacturing required various mineral resources such as silicon, metals (e.g., copper, aluminum, nickel), and rare earth elements. Resource extraction could impact ecosystems, including deforestation, biodiversity loss, water pollution, and soil degradation.	Reduced use of raw materials.
Resource Use / Replenishment	Water Consumption	Winbond’s manufacturing processes had high water demand, especially in ultrapure water production, which required large volumes of surface or groundwater extraction. This could significantly impact the environment. Water resources were essential ecosystem services for Winbond, but extensive water use in the semiconductor industry could lead to competition with nearby communities or businesses and damage ecosystems.	Water was reused and recycled to ensure sustainability. Water recycling systems were established to reduce environmental impact.

Assess Stage: Analyze Nature-related Risks and Opportunities

Based on the dependencies and impacts identified during the Evaluate stage, Winbond assessed potential future nature-related scenarios and evaluated the risks and opportunities arising from ecosystem service dependencies and nature impacts under each scenario. The assessment process was as follows:

Stage	Process	Task	Description
1	Collection	Compile Nature-related Risk/Opportunity List	Based on the Evaluate step analysis and internal/external information, compiled a list of relevant risk and opportunity topics.
2	Identification	Conduct TNFD Workshop	Departments assessed nature-related risks and opportunities based on business dependencies and impacts, and evaluated their influence across the upstream and downstream value chain.
2	Identification	Consolidate Identification Results	The working group consolidated nature-related risk and opportunity factors relevant to each department's operations.
3	Recognition	Nature-related Risks/Opportunities	Considering industry characteristics and operational conditions, identified Winbond’s nature-related risks and opportunities. Based on operational dependencies and impacts, set corresponding indicators and conducted pathway analysis to derive risks and opportunities. Evaluated financial impacts and formulated response strategies, continuously implemented risk mitigation measures and captured opportunities.

Nature-related Risk and Opportunity Analysis

Winbond followed the TNFD (Taskforce on Nature-related Financial Disclosures) guidelines and integrated industry characteristics and operational realities to systematically identify nature-related risks and opportunities through the “TNFD Workshop.” The assessment results indicated that access to “renewable energy” and “reclaimed water” were the current major challenges. To reduce dependency on natural resources, the company continuously improved energy and water efficiency and actively expanded the procurement of renewable energy and the use of reclaimed water. The nature-related risks assessed in this stage were categorized into physical risks and transition risks. Physical risks included climate change-induced disasters, degradation of ecosystem services, and decline in air filtration functions. Transition risks encompassed changes in policy, market, technology, and reputation, and extended to liability risks potentially triggered by environmental pollution. Regarding nature-related opportunities, Winbond focused on enhancing resource efficiency, developing green products and services, expanding new markets, optimizing capital flows and financing mechanisms, strengthening corporate reputation and sustainable resource utilization capabilities, and promoting ecosystem protection, restoration, and regeneration strategies.

Physical Nature-related Risks and Opportunities

Transition Nature-related Risks and Opportunities

Item	Nature-related Risk	Risk Topic and Description	Nature-related Opportunity	Opportunity Topic and Description	Impact Driver	Dependency Driver	Response Measures
Physical Risks and Opportunities	Extreme weather caused by climate change	Affected semiconductor manufacturing processes, resulting in reduced production efficiency, compromised product quality, production interruptions, increased operating costs (e.g., higher electricity and water bills), and rising insurance premiums.	Business Performance – Sustainable Use of Natural Resources Improved energy resource efficiency Transition to renewable energy	Reduced costs and improved efficiency through optimized resource use Installed renewable energy generation devices to reduce carbon emissions and nature impacts	Greenhouse gas emissions	Local climate regulation services	Installed on-site exhaust treatment equipment to reduce greenhouse gas emissions Advanced packaging processes to achieve smaller product sizes Promoted domestic afforestation and conservation programs Installed drainage, flood prevention, and water recycling systems to enhance climate resilience Improved energy efficiency: adopted ISO 50001 Energy Management System and AI-based smart air conditioning technology Invested in renewable energy generation facilities
	Water supply shortage	Droughts led to water shortages, requiring water trucks and increasing costs; heavy rains caused fab flooding, damaging equipment and disrupting transportation, preventing employees from reporting to work.	Business Performance – Sustainable Use of Natural Resources Enhanced corporate reputation Improved water resource efficiency and reduced operating costs	Improved water resource efficiency Reduced operating costs	Water consumption	Rainfall regulation services Water supply services	Enhanced water recycling efficiency and reduced water intake; adopted ISO 46001 Water Efficiency Management System and ISO 14046 Water Footprint Verification Established backup water truck mechanisms to improve drought resilience Installed flood prevention measures to improve flood resilience Incorporated drainage, flood prevention, and water recycling facilities into fab design to enhance climate resilience
	External air composition around fab	Degradation of air filtration services increased demand for cleanroom air filtration equipment. Deteriorating air quality affected employee health.	Business Performance – Ecosystem Protection, Restoration, and Regeneration Supported nature-based solutions to enhance ecosystem integrity	Reduced losses caused by ecosystem service degradation	Greenhouse gas emissions Non-GHG emissions	Air filtration services	Installed on-site exhaust treatment equipment for specific hazardous process gases, including adsorption and combustion oxidation, to meet environmental discharge standards Subsidized regular employee health checkups Controlled carbon emissions and improved process technologies
	Renewable energy supply shortage	Renewable energy generation efficiency may fall short due to weather changes or extreme climate, requiring alternative solutions that increase costs and potentially affect renewable energy targets.	Sustainable Performance – Sustainable Use of Natural Resources Transition to renewable energy	Installed renewable energy generation devices to reduce carbon emissions and nature impacts	Marine ecosystems Terrestrial ecosystems Non-GHG emissions	Local climate regulation services	Planned internal net-zero roadmap for 2050; committed to 50% green electricity (RE50) usage at Taiwan fabs by 2030 Invested in renewable energy generation facilities Purchased voluntary carbon credits

Item	Nature-related Risk	Risk Topic and Description	Nature-related Opportunity	Opportunity Topic and Description	Impact Driver	Dependency Driver	Response Measures
Transition Risks and Opportunities	Increased stakeholder attention to nature-related issues	Public perception of high pollution in the high-tech industry intensified.	Sustainable Performance – Ecosystem Protection, Restoration, and Regeneration Supported nature-based solutions to enhance ecosystem integrity	Reduced losses caused by ecosystem service degradation Promoted ecosystem protection actions to demonstrate commitment to nature-related issues and boost investor confidence	GHG emissions Solid waste generation and discharge Water consumption	Local climate regulation services Water supply Water quality	Actively participated in climate initiatives (SBTi), domestic and international ESG ratings (DJBIC, CDP, MSCI, TCSA), and sustainability awards to enhance credibility Invested in ecosystem protection and restoration, including afforestation and conservation programs such as the 30-year tree planting carbon reduction plan Protected endangered and native plant species to maintain biodiversity and ecosystem health Adopted 100% responsible sourcing and used conflict-free minerals
Shift toward low nature-impact technologies/operations	Domestic and international markets favored environmentally friendly products and services.	Business Performance – Market Developed products and services with positive nature impacts aligned with eco-conscious consumer preferences	Consumers increasingly preferred green products and services. Organizations built eco-friendly brand awareness to attract such preferences.	GHG emissions Non-GHG emissions	Local climate regulation services	Developed products focused on reducing environmental impact (e.g., low-carbon materials, energy-saving designs, compact packaging, fewer pins) to support customers in achieving low-carbon goals Continued investment in renewable energy development and collaboration with green industry suppliers
Compliance with regulatory changes and potential fees	Fabs faced liability risks if pollutants were not properly managed.	Business Performance – Resource Efficiency Transitioned to circular operations to reduce nature dependency and impact	Promoted resource circularity to reduce nature dependency and impact.	GHG emissions Solid waste generation and discharge	Solid waste remediation services	Verified ISO 14046 Water Footprint and adopted ISO 46001 Water Efficiency Management System Installed wastewater treatment systems for scrubbers, cooling towers, and process water recycling Implemented waste reduction, classification, and recycling measures

Item

Nature-related Risk

Risk Topic and Description

Nature-related Opportunity

Opportunity Topic and Description

Impact Driver

Dependency Driver

Response Measures

Transition Risks and Opportunities

Increased stakeholder attention to nature-related issues

Public perception of high pollution in the high-tech industry intensified.

Sustainable Performance – Ecosystem Protection, Restoration, and Regeneration

Supported nature-based solutions to enhance ecosystem integrity

Reduced losses caused by ecosystem service degradation
Promoted ecosystem protection actions to demonstrate commitment to nature-related issues and boost investor confidence

GHG emissions
Solid waste generation and discharge
Water consumption

Local climate regulation services
Water supply
Water quality

Actively participated in climate initiatives (SBTi), domestic and international ESG ratings (DJBIC, CDP, MSCI, TCSA), and sustainability awards to enhance credibility
Invested in ecosystem protection and restoration, including afforestation and conservation programs such as the 30-year tree planting carbon reduction plan
Protected endangered and native plant species to maintain biodiversity and ecosystem health
Adopted 100% responsible sourcing and used conflict-free minerals

Shift toward low nature-impact technologies/operations

Domestic and international markets favored environmentally friendly products and services.

Business Performance – Market

Developed products and services with positive nature impacts aligned with eco-conscious consumer preferences

Consumers increasingly preferred green products and services. Organizations built eco-friendly brand awareness to attract such preferences.

GHG emissions
Non-GHG emissions

Local climate regulation services

Developed products focused on reducing environmental impact (e.g., low-carbon materials, energy-saving designs, compact packaging, fewer pins) to support customers in achieving low-carbon goals
Continued investment in renewable energy development and collaboration with green industry suppliers

Compliance with regulatory changes and potential fees

Fabs faced liability risks if pollutants were not properly managed.

Business Performance – Resource Efficiency

Transitioned to circular operations to reduce nature dependency and impact

Promoted resource circularity to reduce nature dependency and impact.

GHG emissions
Solid waste generation and discharge

Solid waste remediation services

Verified ISO 14046 Water Footprint and adopted ISO 46001 Water Efficiency Management System
Installed wastewater treatment systems for scrubbers, cooling towers, and process water recycling
Implemented waste reduction, classification, and recycling measures

Prepare Phase: Strategic Response and Action Execution

Winbond adopted the AR3T action framework to mitigate its impact on biodiversity and incorporated the TNFD (Taskforce on Nature-related Financial Disclosures) framework into its sustainability strategy. Through the four principles of “Avoid,” “Reduce,” “Restore,” and “Regenerate,” the company systematically managed interactions between its operations and the natural environment, aiming to comprehensively assess financial impacts and promote sustainable operations.