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Reference Guidelines for Identifying Sustainable Economic Activities

At the end of 2024, the Financial Supervisory Commission announced the second edition of the “Reference Guidelines for Identifying Sustainable Economic Activities,” in alignment with Taiwan’s “2050 Net-Zero Emissions Target” and the policy goals of “Green Growth and 2050 Net-Zero Transition.” To encourage more enterprises to move toward carbon reduction and sustainability, the second edition expanded the scope of applicable industries and established criteria for determining substantial contributions to environmental objectives based on the characteristics and environmental impact of economic activities. These guidelines assist enterprises and the financial sector in identifying what constitutes sustainable economic activities.

The guidelines categorized economic activities into “General Economic Activities” (Note 1) and “Enabling Economic Activities” (Note 2). The former were required to meet three criteria simultaneously: making a substantial contribution to environmental objectives, causing no significant harm to other environmental goals, and causing no significant harm to social safeguards. The latter included innovative technologies such as renewable energy, hydrogen, carbon capture and storage, and energy technology services, and were considered sustainable as long as they met the contribution criterion.

Winbond Group, upholding its commitment to sustainable development, proactively responded to regulatory policies by voluntarily disclosing the applicability and compliance of its major economic activities with the Reference Guidelines for Identifying Sustainable Economic Activities. The Group also formulated and implemented carbon reduction and sustainability transition strategies and plans based on the guidelines to achieve net-zero emissions in an orderly manner. The disclosure status of Winbond Group is as follows:

Winbond

Nuvoton

	Criteria for Identifying Sustainable Economic Activities	Screening Criteria	Description
General Economic Activities	(1) Technical screening criteria for substantial contribution to any environmental objective	IC manufacturing: The unit product GHG emissions (Scope 1 + Scope 2) in the most recent year met the following standard: 12-inch mature process wafers (≥10nm) ≤ 1.31 kg CO₂e/cm².	In 2024, Kaohsiung Fab and CTSP Fab achieved 0.76 kg CO₂e/cm², meeting the criteria for sustainable economic activities in the semiconductor manufacturing industry: 12-inch mature process wafers (≥10nm) ≤ 1.31 kg CO₂e/cm².
	(2) Principles for determining no significant harm to six environmental objectives	Winbond complied with common applicable regulations without causing significant harm to six environmental objectives	For criteria on significant harm, please refer to Note 1.
	(3) Principles for determining no significant harm to social safeguards	Winbond complied with common applicable regulations without causing significant harm to social safeguards	For criteria on significant harm, please refer to Note 1.
Enabling Economic Activities	Included one forward-looking activity	Based on assessment, Winbond met Item 1 “Renewable energy generation, facilities, and related components,” and Item 11 “Water-saving, water recycling, emerging water source development equipment or systems, technology development, and professional services.”	In 2019, Winbond installed a 499 KW rooftop solar power system at its fab, and converted the generated electricity for self-use in 2024, realizing green manufacturing. Winbond used 43.96 million kWh of renewable energy in 2024 and obtained 43,961 renewable energy certificates. Winbond implemented ISO 46001 Water Efficiency Management System, installed water recycling systems, and recovered rainwater and condensate. In 2024, the fab-wide water recycling rate reached 81.9%. Through process optimization and RO backwash automation, Winbond actively promoted water conservation and recycling, continuously improving water efficiency.

	Criteria for Identifying Sustainable Economic Activities	Item	Description
General Economic Activities	(1) Technical screening criteria for substantial contribution to any environmental objective	IC manufacturing: The unit product GHG emissions (Scope 1 + Scope 2) in the most recent year met the following standard: wafers ≤ 6 inches ≤ 2.18 kg CO₂e/cm².	In 2024, Nuvoton’s unit product GHG emissions (Scope 1 + Scope 2) were 0.607 kg CO₂e/cm², meeting the criteria for sustainable economic activities in the semiconductor manufacturing industry: wafers ≤ 6 inches ≤ 2.18 kg CO₂e/cm².
	(2) Principles for determining no significant harm to six environmental objectives	Nuvoton complied with common applicable regulations without causing significant harm to six environmental objectives	For criteria on significant harm, please refer to Note 1.
	(3) Principles for determining no significant harm to social safeguards	Nuvoton complied with common applicable regulations without causing significant harm to social safeguards	For criteria on significant harm, please refer to Note 1.
Enabling Economic Activities	Included one forward-looking activity	Based on assessment, Nuvoton met Item 1 “Renewable energy generation, facilities, and related components.”	In response to the government’s green energy promotion policy, Winbond Group continued investing in renewable energy development and utilization. In 2019, Winbond installed a 499 KW rooftop solar power system at its fab and converted the generated electricity for self-use in 2024, realizing green manufacturing. Nuvoton Taiwan also actively advanced its efforts. In 2023, it launched an energy-saving and carbon-reduction project, installed solar renewable energy systems, and completed 8% of contracted capacity in the same year (installed capacity of 819 KW, with an annual output of 1 million kWh). Moving forward, Winbond Group will continue evaluating the expansion of renewable energy capacity and gradually increase renewable energy usage to achieve its goal of becoming a green enterprise.

Note

Note 1: General Economic Activities

"No significant harm to the other six environmental objectives and social safeguards" was determined based on whether the enterprise had been subject to major penalties by the competent authority due to violations of the following commonly applicable regulations:

	Item	Commonly Applicable Regulations Without Significant Harm
Six Environmental Objectives	Climate Change Mitigation	No major penalties imposed by the competent authority due to violations of the Climate Change Response Act or other relevant regulations.
	Climate Change Adaptation	(None)
	Sustainability and Conservation of Water and Marine Resources	No major penalties imposed by the competent authority due to violations of the Water Act, Tap Water Act, Reclaimed Water Resources Development Act, Drinking Water Management Act, Marine Pollution Control Act, Coastal Management Act, National Land Planning Act, or other relevant regulations.
	Transition to Circular Economy	No major penalties imposed by the competent authority due to violations of the Resource Recycling and Reuse Act, Waste Disposal Act, Toxic and Concerned Chemical Substances Control Act, or other relevant regulations.
	Pollution Prevention and Control	No major penalties imposed by the competent authority due to violations of the Air Pollution Control Act, Indoor Air Quality Management Act, Water Pollution Control Act, Soil and Groundwater Pollution Remediation Act, Emission Standards for Cooking Fume from Food Service Industry, Methods for Storage, Removal and Disposal of Hazardous Industrial Waste, Noise Control Standards, Environmental Medication Management Regulations, or other relevant regulations.
	Protection and Restoration of Biodiversity and Ecosystems	No major penalties imposed by the competent authority due to violations of the National Park Act, Cultural Heritage Preservation Act (Natural Reserve Section), Wildlife Conservation Act, Forest Act, Coastal Management Regulations, Wetland Conservation Facilities, Environmental Impact Assessment Act, or other relevant regulations.
Social Safeguards	Social Safeguards	None of the following situations occurred: Violations of international conventions and implementation laws: Implementation Act of the International Covenant on Civil and Political Rights and the International Covenant on Economic, Social and Cultural Rights, Implementation Act of the Convention on the Elimination of All Forms of Discrimination Against Women, Implementation Act of the Convention on the Rights of the Child, Implementation Act of the Convention on the Rights of Persons with Disabilities, Implementation Act of the Convention on the Elimination of All Forms of Racial Discrimination. Violations of domestic labor laws: Labor Standards Act, Occupational Safety and Health Act, Labor Insurance Act, Employment Services Act, Labor Occupational Accident Insurance and Protection Act, Labor Pension Act, Labor Union Act, Collective Agreement Act.

Note 2: Enabling Economic Activities

The codes, descriptions, and relevant domestic and international reference standards for the 14 enabling economic activities are listed in the table below. The sub-category codes corresponding to the 11th revision (January 2021) of the industry classification by the Directorate-General of Budget, Accounting and Statistics (DGBAS) are for reference only and do not imply that all business operations under the respective codes qualify as enabling economic activities:

(1) Renewable energy generation, facilities, and related components.
(2) Hydrogen application technology R&D and infrastructure.
(3) Smart grid system R&D and infrastructure.
(4) Manufacturing of high-efficiency equipment and application of high-efficiency technologies.
(5) Infrastructure supporting low-carbon water transportation.
(6) Carbon capture, utilization, and storage (CCUS) technology R&D and application.
(7) Provision of energy technology services (ESCO) or professional services with energy-saving effectiveness.
(8) R&D and application of alternative processed food technologies.
(9) R&D and application of natural carbon sink technologies.
(10) Energy storage facilities and related components.
(11) Engineering, equipment, and consulting services for climate change adaptation.
(12) Installation of equipment or systems, technology development, and professional services for water conservation, water resource recycling, or development of emerging water sources.
(13) Other applications of low-carbon and circular economy technologies.