Resources｜Disclosure Reference Table

Discussion of long- and short-term strategy or plan to manage Scope 1 emissions, emissions reduction targets, and an analysis of performance against those targets

• Total energy consumption is about 2,958,834 GJ
• 100% purchased electricity
• 0.3% Renewable energy usage

• Total water withdrawal: Taiwan: 4,356 thousand m³; Subsidiaries: 396 m³.
• Total water consumption: Taiwan: 1,432m³; Subsidiaries: 79 m³.

• Total hazardous waste: Taiwan: 6,387 metric tons; Subsidiaries: 407 metric tons
• Hazardous waste recycling rate: Taiwan: 83%; Subsidiaries: 95%

• Occupational accident types: crushing injury caused by falling objects, chemical splash injury, personnel fall accident
• Number of employees with work-related injuries on record: 5 entries
• Ratio of work-related injuries on record: 0.72

3.3 Waste Management

• Produced waste: Taiwan: 13,595 metric tons, Subsidiaries: 675 metric tons
• The overall waste recycling rate reached: Taiwan: 90.9%, Subsidiaries: 71%

4.1 Sustainable Supply Chain Management Framework and Mechanisms
A Sustainable Supply Chain team is set up under the ESG committee to be responsible for developing supplier management policies and related sustainable development ：

• Signing rate of Winbond Supplier code of conduct commitment letter: 100%
• Percentage of suppliers who have signed agreements not to use prohibited materials: 100%
• Compliance rates of newly traced suppliers with respect to economic, environmental, and social standards: 100%

• Total wafer production was 2.6 thousand pcs
• Total die production was 3,769,936 thousand pcs

• The Board of Directors, as the highest governance body for climate change, is responsible for guiding the company’s response to and decision-making on climate change
• The ESG Committee, established under the Board of Directors and chaired by the Chairman, provides annual reports to the Board on the implementation outcomes related to climate change and other ESG initiatives. This ensures the effective promotion and execution of the company’s sustainable development efforts.

Climate Risks 

1. Change in customer behavior (Short-term):

• Decrease in sales of non-low-carbon products (-)
• Increased communication with customers, which also resulted in higher labor costs (－)

2. Transition to low-carbon technology (Short-term):

• Capital expenditure for new equipment (-) 
• R&D cost increase (－)
• Reduce carbon emissions led to decreased carbon tax / fee expense (＋)

3. Carbon fee/ Carbon tax levy (Short-term):

• Indirect cost increase (－)
• Suppliers passing on carbon tax/fee expenses have contributed to increased procurement costs (－)
• Limited capacity expansion (－)

4. Requirement of renewable energy (Short-term):

• Higher green energy prices also increase production costs (－)
• Reducing carbon emissions decreased carbon tax/fee expenses (＋)
• Suppliers passing on renewable energy expenses increased procurement costs (－)
• Challenges in obtaining renewable energy restrict production (－)

5. Environmental regulatory laws (Short-term) ：

• Compliance costs increase due to regulatory requirement (－)
• Penalties for non-compliance (－)
• Rising environmental fee as indirect costs (－)

6. International conventions or agreements (short-term) ：

• Indirect costs arising from post-agreement commitments (－)
• Capital expenditures resulting from post-agreement commitments (－)
• Reducing carbon emissions decreases carbon tax/fee expenses (＋)

7. Total greenhouse gas control and emission trading (Mid-term):

• Penalties for excessive emissions increase indirect costs (－)
• Early replacement of existing equipment reduces asset value (－)
• Introducing renewable energy increases production costs (－)
• Capacity expansion constraints (－)

Climate Opportunities 

1. Change in customer behavior (Short-term):

• Portfolio changes, which can accelerate positive development across the entire supply chain
• Obtain orders to expand revenue
• Enhance order stability and reduce revenue fluctuations
• Enhance the company's reputation

2. Participation in renewable energy projects (Short-term):

• Reduce carbon emissions to reduce carbon taxes or fees
• Diversify electricity risk
• Assist in meeting renewable energy regulatory requirements and achieving corporate goals

3. Process optimization and research and development innovation (Mid-term):

• Reduce carbon emissions to reduce carbon taxes or fees
• Lower raw material and resource consumption, thereby reducing production costs
• Obtain orders to expand revenue

4. Obtaining government incentives or cooperation (Mid-term):

• Reduce capital expenditures by obtaining government subsidies
• Lower indirect costs by obtaining government subsidies
• Enhance the company's reputation

5. Development of low-carbon products or services (Long-term):

• Increased product unit price
• Expand market size and increase revenue

• In 2023, Winbond convened 15 department-level units and nearly 30 colleagues to establish the TCFD project team. Referring to the division of responsibilities by the ESG Committee's working groups, team members were grouped based on the nature of their business. Each group discussed climate change issues relevant to their business and reported the assessment results during the Sustainable Development Committee meetings.

Conducted risk simulations for 3 scenarios related to transition risk, which includes:

• 1. Governance Net-Zero Pathway: Primarily assessing domestic regulatory risks.
• 2. SSP1-1.9 Low Emission Scenario from the Intergovernmental Panel on Climate Change (IPCC): Derived from the IPCC’s sixth scientific assessment report.
• 3. Science-Based Targets Net-Zero (SBT-NZ): Complying with the required annual reduction rate of 4.2% based on scientific carbon reduction goals.

External Scenarios /Hypothetic/Financial impact on revenue in 2030

1. Carbon Tax：

• Governance Net-zero Pathway／Estimations based on SSP2-4.5 indicate a range of US$2 to 10 per metric ton of CO2 equivalent from 2021 to 2050./ 0.1%~0.2%
• SSP1-1.9／Referring to SSP1-1.9, achieving approximately US$650 per metric ton of CO2 equivalent by 2050.／2.0%~4.0%

2. Carbon Fee：

• The government's net-zero pathway includes a carbon exemption quota of 25,000 tCO2e/year; the carbon fee is estimated at NT$1,500 per tCO2e, accounting for 0.1% to 0.2%.

3.ﾠRegulatory Requirements for Using Renewable Energy Electricity：

• Government Net Zero Pathway: Procurement costs estimated by adding the average price of Taiwan Power Company’s renewable energy electricity resale to the supply cost: <0.03%.
• SSP1-1.9: Procurement costs estimated by adding the average price of Taiwan Power Company’s renewable energy electricity resale to the supply cost: <0.03%.
• SBT-NZ: Procurement costs estimated by adding the average price of Taiwan Power Company’s renewable energy electricity resale to the supply cost: <0.03%.

Climate-related risk transition plan:

1. Green Product：

• Enhancing productivity
• Decreasing power consumption of products in use
• Reducing power consumption and extending battery life
• Supporting environmentally friendly and low-energy consumption low-temperature soldering processes

2. Sustainable Supply Chain：

• Promoting the transformation of supply chains towards decarbonization
• Enhancing sustainable procurement
• Strengthening low-carbon management of outsourcers
• Actively establishing internal green logistics systems

3. Energy and Greenhouse Gas Management：

• Implementing energy-saving measures
• Planning for the use of renewable energy
• Adopting Greenhouse Gas Management processes
• Establishing greenhouse gas emission reduction targets in production and manufacturing
• Creating a carbon emission information platform

4. Water Management：As of 2023, all locations of operations in Taiwan are all located in low-risk areas of water resource pressure
5. Sustainable Investment and Financing：

• Continuing to layout renewable energy

• Participating in sustainable finance through various channels

   

Climate-related Metrics and Goals 

1. Green Product：

• 1.2VﾠHyperRAM mass production：20% reduction in GHG emissions throughout the products' life cycle.
• 3VﾠSpiﾠNORﾠRV series mass production: GHG reduction of 110,000 tCO2e in 2030

2. Sustainable Supply Chain：

• Supply chain carbon reduction: reduce carbon emissions by 10% by 2030 (based on the year 2021)
• Sustainable risk assessment completion rate for key suppliers: 100% by 2030
• Construction and utilization rate of outsourced product carbon data exchange standard modules: 100% utilization rate by 2030
• Planning rate of internal green logistics system and green electricity product production system: 100% utilization rate by 2030

3. Environmental Sustainability：

• Greenhouse Gas Emission Intensity: Reduce by 5% YoY by 2030ﾠ
• Total Power Saving: >2~3% by 2030
• Renewable Energy Usage/Proportion: 90% use of renewable energy in the CTSP fab area by 2030
• Unit Product Power Consumption: Reduce by 1% YoY by 2030
• Plant-wide Water Recycling Rate in 2030 ≥80%

4. Adaptation to Climate Risk：

• Operational Interruptions Caused by Climate Disasters (Days): 0 days

Climate-related activities

• Process gas reduction, process tail gas reduction
• Energy efficiency improvement, zero carbon energy, low carbon value chain
• Carbon offset
• In 2023: 2103 T-RECs(Renewable Energy Certificates) were obtained by using renewable energy electricity.
• 2021-2050 Net Zero Emission Pathway
• 2030: The CTSP Plant aims to use 90% green energy for its electricity needs. Additionally, the plant aims to achieve a 60% reduction in carbon emissions, including those from the supply chain.
• 2050: The goal is to achieve net-zero emissions annually

• The greenhouse gas emission target is to reduce the unit greenhouse gas emission intensity YoY by 5% annually by 2030. The unit greenhouse gas emission intensity indicator for 2023 - "Average greenhouse gas emissions per layer of
  photomask for 12-inch wafer production" is 15.5 kilograms of carbon dioxide equivalent, compared to 13.2 kilograms of carbon dioxide equivalent in 2022, representing a YoY increase in unit product carbon emissions of about 17.4%. The reason
  for not achieving the target is due to factors such as the global economic recession in 2023 leading to a decrease in production capacity and the new plant in Kaohsiung not yet reaching its economic scale, resulting in an increase in unit product
  average emissions.
• Reduce 60% emission at CTSP Fab, in 2030.

5.1 Human Rights Governance

5.3 Employee Communication and Relations

5.1 Human Rights Governance

5.2 Talent Attraction and Development

5.1 Human Rights Governance