Resources｜Disclosure Reference Table

• Winbond’s goal is to use 90% renewable energy in the CTSP Fab by 2030. Currently, the CTSP Fab has installed solar energy, and the Kaohsiung Fab is in the active evaluation stage. The future plan is to collaborate with other companies on building new solar energy fields and purchasing T-RECs, etc.
• In 2022, the target of greenhouse gas emission intensity per unit product (kg CO2e / layer-wafer photomask) was ≦13.3; the actual situation in 2022 was 13.2, reaching the target for the year

• The total energy consumption is about 2,807,178 GJ
• 100% purchased electricity
• No renewable energy has been used

• The total water withdrawal is 4,131 thousand m³
• The total water consumption is 960 thousand m³

• 4,608 metric tons of hazardous waste
• Hazardous waste accounted for 84% of waste recycling

• Occupational accident types: crushing injury caused by falling objects, chemical splash injury, personnel fall accident
• Number of employees with work-related injuries on record: 3 entries
• Ratio of work-related injuries on record: 0.43

Please refer to 2.3 Waste Management

• Produced waste: 9,584 metric tons
• The overall waste recycling rate reached 90.1%

Please refer to 3.2 Sustainable Supply Chain Management Framework 
A sustainable supply chain team is set up under the Sustainability ESG committee to be responsible for developing supplier management policies and related sustainable development issues 
2022 Supplier Sustainability Management Results:

• Percentage of suppliers who have signed agreements with Winbond to uphold its Ethics and Integrity Policy: 100%
• Percentage of suppliers who have signed the Winbond Supplier Code of Conduct Commitment Letter: 100%
• Percentage of suppliers who have signed agreements not to use prohibited materials: 100%

• Total wafer production was 2.1 thousand pcs
• Total die production was 3,397,345 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 is established under the Board of Directors and chaired by the Chairman. It regularly reports to the Board of Directors every year on the implementation results of the ESG Committee related to climate change, etc., so as to ensure the promotion and implementation of the work related to the sustainable development of the enterprise

Climate risk 

1. Demand for renewable energy (medium-term):
   • The price of renewable energy is higher, and the production cost increases
   • Reduce carbon emissions and reduce carbon tax / fee expenditures
   • Suppliers pass on their renewable energy expenditures, increasing procurement costs
   • Renewable energy is difficult to obtain, limiting the production
2. Carbon tax / carbon fee (medium-term):
   • Increased indirect costs
   • Suppliers pass on their carbon tax / fee expenditures, increasing procurement costs
   • Limited capacity expansion
3. Unstable electricity supply (long-term):
   • Affect production, reduce revenue
   • Affect suppliers’ supply and affect Winbond’s production
4. Extreme rainfall and drought (medium-term):
   • Affect production, reduce revenue
   • The automated production line has no down time, and overtime pay is paid according to law, which increases labor costs
   • Affect suppliers’ supply and affect Winbond’s production
   • Increase in natural disaster insurance premiums

Climate opportunities 

1. Changes in customer behavior (medium-term):
   • Changes in product portfolio, accelerating the positive development of the overall supply chain
   • Acquire orders and expand revenue
   • Improve order stability and reduce revenue fluctuations
   • Enhance company reputation
2. Participation in renewable energy projects (short-term):
   • Reduce carbon emissions and reduce carbon tax / fee expenditures
   • Diversify electricity risk
   • Helps comply with renewable energy regulations and achieve corporate goals
3. Process optimization and R&D innovation (short-term):
   • Reduce carbon emissions and reduce carbon tax / fee expenditures
   • Lower water consumption and lower production costs
   • Acquire orders and expand revenue
4. Development of low-carbon products and services (short-term):
   • Increased product unit price
   • Expanded market size and increased revenue
5. Improvement in energy efficiency (short-term):
   • Reduced production and operating costs

• In 2022, Winbond established a TCFD with more than 40 members, of whom more than 60% were above the department managerial level. The members of the task force were grouped according to the nature of their business, and each group discussed the climate change issues based on their business relevance.
• Through 4 workshops and educational training, 4 major climate risks and 7 minor climate risks were identified, as well as 5 major climate opportunities and 4 minor climate opportunities.

Conduct transition risk simulations in three scenarios, including

• National net-zero path, mainly assessing domestic regulatory risks
• The SSP1-1.9 very low GHG emission scenario in the Intergovernmental Panel on Climate Change (IPCC) Sixth Assessment Report
• Implement the annual 4.2% reduction rate required in the Science-Based Targets Net-zero (SBT-NZ)

External scenarios / assumptions / Financial impact on revenue in 2030

1. Imposition of carbon tax
   • National net-zero path / estimated at US$2~10 per ton CO2e from 2021 to 2050 by referring to SSP2-4.5 / <0.1%
   • SSP1-1.9 / reaching about US$650 per ton CO2e in 2050 by referring to SSP1-1.9 / 1~2%
   • SBT-NZ / reaching about US$650 per ton CO2e in 2050 by referring to SSP1-1.9 / 1~2%
2. Use of renewable energy power
   • Government net-zero path / procurement costs are estimated based on the average wholesale price of Taipower’s renewable energy power plus power supply costs / <0.01%
   • SSP1-1.9 / procurement costs are estimated based on the average wholesale price of Taipower’s renewable energy power plus power supply costs / <0.01%
   • SBT-NZ / procurement costs are estimated based on the average wholesale price of Taipower’s renewable energy power plus power supply costs / <0.01%

Transition plan for climate-related risks

1. Green product:
   • Increase productivity
   • Reduce the power consumption of the products
   • Reduce power dissipation and extend battery life
   • Support low-temperature soldering process that is environmentally friendly and low production power consumption
2. Sustainable supply chain:
   • Sustainable procurement strategy and activities
   • Sustainability risk assessment and management
   • Winbond Supplier ESG Interactive Website
3. Energy and greenhouse gas management:
   • Implement electricity conservation measures
   • Renewable energy use planning
   • Introduce greenhouse gas management process
   • Greenhouse gas emission strategies and goals in terms of production and manufacturing
   • Create a carbon emission information platform

4. Water resource management:

   At present, all locations of operations in Taiwan are all located in low-risk areas of water resource pressure

Climate-related management indicators and goals

1. GHG emissions:
   • In 2023, the CTSP Fab will reduce another 15,700 tons CO₂e
   • In 2030, the CTSP Fab will reduce by 60% (with 2021 as the baseline year)
2. Renewable energy power percentage: In 2030, 90% of CTSP Fab will use renewable energy power
3. Fab-wide water recycling rate: ≧80%
4. Supply chain carbon reduction: Reduce carbon emissions from our supply chain by 10% by 2030. (with 2021 as the baseline year)
5. Disruption of operations due to weather disasters (number of days): 0 days

Activities for climate-related goals

• Process gas reduction, process tail gas reduction
• Energy efficiency improvement, zero carbon energy, low carbon value chain
• Carbon offset

2021-2050 net zero emission path

• 2030: 90% of the electricity in CTSP Fab uses renewable energy; 60% carbon reduction in CTSP Fab (including supply chain)
• 2050: Annual net zero emissions