Our Focuses｜Sustainable Supply Chain｜Toward Net-Zero Supply Chain
Sustainable Supply Chain
Winbond, building on the governance foundation of "Practicing Responsible Procurement," and remaining "People-oriented," adopts an ecosystem-based approach to design the work for promoting supply chain sustainability. It continues to implement sustainable supply chain management through the dual-axis transformation tools of digitalization and low-carbonization. In 2024, Winbond made significant progress in three key areas, leveraging strong supply chain partnerships and sustainability principles. Firstly, in responsible procurement, procurement efforts comprehensively promoted local, green, and circular procurement. In regular supplier evaluations, it has developed into sustainable regular evaluations, providing follow-up incentives to encourage suppliers to become Winbond's sustainable "+1".
Facing a highly challenging business environment, we believe that only by constantly maintaining innovative management thinking, quickly adjusting and responding, and evolving appropriate business capabilities with suppliers can we truly practice the common good and common benefit of the supply chain, which is the truth of corporate sustainable governance.
E OSAT Suppliers have Established Production Capacity for Renewable Energy-Based Products
100
%
S Co-learning Hours of Eco Supply Chain System
38646
Hours
G Supplier Sustainability Audits and Guidance
100
%
Low-carbon Supply Chain Strategy and Management
Addressing significant concerns about extreme climate events and reducing carbon emissions has become a primary focus for international brand manufacturers. Achieving net-zero emissions by 2050 has garnered consensus among numerous countries and enterprises worldwide. Winbond advocates leading by example and believes that effective propagation of carbon reduction efforts starts internally.
Internally, Winbond has established sustainable procurement practices (including local, circular, and green procurement), implemented an internal green logistics management system, and supported outsourced partners in developing low-carbon technologies. Externally, Winbond encourages and promotes carbon reduction initiatives among suppliers, regularly collects data to monitor progress towards carbon reduction goals, organizes various supplier engagement activities to build consensus on carbon reduction, and collaborates with government subsidy projects to reduce carbon management costs for suppliers and lower entry barriers. Together with suppliers, Winbond aims to become a responsible corporate citizen committed to sustainable practices.
Low Carbon Supply Chain Strategy - Comprehensive Carbon Reduction Management
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Leading by Example - Carbon Reduction Initiatives at the Supply Chain Source
Sustainable Procurement
Winbond expects more suppliers to become sustainable "+1" members of its supply chain. Therefore, we actively leverage the economic benefits generated by procurement activities to collaborate with existing and potential suppliers as long-term partners. In 2024, Winbond fully promoted economically beneficial sustainable procurement practices, including local procurement to reduce greenhouse gas emissions from international transportation, circular procurement to create material recycling and reuse, and green procurement to encourage domestic suppliers to provide Green
Products/services.
Description
In 2024, externally, we faced impacts such as climate change and international climate agreement reforms, inflation control, and the Russia-Ukraine and Israel wars; internally, to meet the needs of Winbond Group's green products and process improvements, in addition to setting management goals annually, we actively adjusted the procurement ratio of local raw material suppliers. Overall, Winbond Group made good progress in local procurement performance, including the proportion of local procurement of raw materials for Winbond increasing from 37.8% in 2023 to 39% in 2024, an annual increase of 1.2%; the proportion of local procurement of raw materials for Nuvoton increased from 41.6% in 2023 to 44.6% in 2024, an annual increase of 3%; the proportion of local procurement of raw materials for Nuvoton(Japan) increased from 52% in 2023 to 60% in 2024, an annual increase of 8%.
Proportion of local procurement amount of raw materials
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Description
In 2024, through the recycling and sale of recyclable waste, including waste targets, quartz, waste wafers, O-rings, FOSBs, Mixed Metals/Laptops/Screens/ Iron/Circuit Boards, Winbond created over NT$6.52 million in waste sales performance, a 64% increase compared to 2023. Looking ahead, Winbond will continue to seek products that can be repaired, reused, or recycled during the procurement process, emphasizing resource utilization efficiency through circular procurement to promote the achievement of sustainable development goals.
Performance in 2024
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Green Logistics
In 2024, Winbond actively responded to this demand by incorporating plans for low-carbon production into its internal logistics system, based on considerations within the company's value chain. This included reducing packaging materials through recycling and minimizing waste, and promoting resource utilization from waste materials.
Reduction and recycling of packaging materials | Resource utilization of waste materials |
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| For packaging materials, we require suppliers to increase the proportion of recycled materials while maintaining product packaging strength. Suppliers must provide a Safety Data Sheet (SDS) to demonstrate compliance with safety standards. | We gather market information to comprehensively evaluate various recycling methods for waste resources. We actively guide manufacturers to seek innovative technologies for recycling and remanufacturing that comply with legal, economic, and environmental standards. |
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Capability of OSAT Research and Development
In collaborating with outsourced assembly and test (OSAT) partners on low-carbon initiatives and technology development, we encourage the retirement of high-energy-consumption or inefficient machinery and equipment. Through organisational greenhouse-gas (GHG) inventories, product carbon-footprint assessments, and the introduction of an ISO 50001 energy-management system, we identify carbon-emission hotspots and determine significant energy-use areas.
In summary, the low-carbon technology development among outsourcers in 2023 focused on three aspects: Firstly, monitoring the input of energy and resources in each stage of testing and packaging processes, and actively communicating with outsourcers to reduce energy usage; secondly, evaluating the development of green materials and prioritizing the use of raw materials that meet environmental and regulatory standards; collaborating with outsourcers to brainstorm ideas for low-carbon processes. Third, by optimizing upstream material inputs, waste generation during the outsourcing phase is minimized, effectively lowering overall waste disposal across Winbond's supply chain.
Low-carbon material development and process optimization: Discuss the opportunities for manufacturing process optimization with 2 OSAT suppliers to jointly verify low-carbon materials, and 6 OSAT suppliers to identify carbon reduction hotspots as the core
Conduct regular product carbon emission inventory: In 2024, a total of 8 companies will conduct a second product carbon footprint inventory, which confirmed the changes in product carbon emissions and continue to target carbon reduction targets for hot spots
Set up a packaging material carbon reduction project: Promote work items including replacing cartons with electrostatic boxes, reducing reel materials, recycling and reusing Carrier tape, recycling and reusing tube materials, and eliminating duplicate labels, reducing CO2e by a total of 175 tons
Energy-saving test production planning was introduced for packaging and testing, reducing CO2e by a total of 42 tons
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Dissemination and Influences Governance Power in Winbond Supply Chain
As global brands increasingly emphasize the carbon reduction capabilities of their supply chain members, the trend towards supply chain-based carbon reduction units is becoming clearer worldwide. To ensure each supplier gradually becomes a participant in Winbond's supply chain carbon reduction efforts, Winbond has established a Carbon Management Portfolio strategy. This strategy integrates four key approaches: Data Governance, Sustainable Learning from Large to Small, Management Transformation, and Joint Identification of Development Opportunities, forming the core of Winbond's low-carbon governance across its supply chain.
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Low Carbon Supply Chain Management Process
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Carbon Management Strategy Portfolio | Management Process | Item and Performance |
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Large Leads Small Initiative | 1. Identify conflicts 2. Carbon reduction declaration 4. Fostering Collective Awareness |
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Data Governance | 3. Data Governance |
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Managing transformation | 1. Identify conflicts 3. Data Governance 4. Fostering Collective Awareness |
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Identifying Development Opportunities Together | 5. Carbon Abatement together |
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