CORPORATE SUSTAINABILITY

CS Committee Chairman Message

Dear Friends Interested in the Sustainability of UMC:

2016 has been a fruitful year for UMC in terms of the sustainable development achievements, with continuous improvement and progress on execution performance of our sustainable management strategy. As for the company’s ranking among domestic and foreign non-government organizations, we have been listed as a Dow Jones Sustainability Indices (DJSI) constituent stock for nine consecutive years. We have also been ranked as the best among Asian semiconductor companies in the Asia Top 100 Sustainable Enterprises from Channel NewsAsia. In Taiwan, we have won the “Corporate Citizenship Award” from CommonWealth Magazine and “Corporate Social Responsibility Award” from Global View Monthly. Our team has been adhering to the vision of “People-oriented, Environmental Symbiosis, and Social Prosperity” with constant dedication to the aspects of “Customers, Shareholders, Employees, Environment, and Society”, while converting the risks and opportunities of sustainable development into actual actions and competitiveness. We have also introduced 17 global sustainable development goals of UN SDGs as the basis for sustainable management and assessment, and we have integrated sustainable indicators with operating benchmarks to become part of the company’s operations.

UMC’s company governance performance in 2016 was rated by DJSI as better than average for semiconductor industries in emerging markets. In the corporate governance evaluation done by Taiwan Stock Exchange, UMC has been well recognized by domestic and foreign investors by achieving the honor of top 5% for 3 consecutive years. UMC has established good interactions and a checks-and-balance function between the board of directors and management team via “Remuneration Committee”, “Audit Committee”, and “Capital Budget Committee”, which will not only improve operational transparency, but also protect the rights and interests of all shareholders. UMC has also continued to focus on the independence and balance of board directors with participation by a female independent director and periodic self-assessment among all directors of the board.

In terms of environmental sustainability, we have successfully achieved the first year goals of our “Green 2020” plan for reducing power use, water, and waste through joint efforts with all of our employees. We have also been awarded the ROC Enterprises Environmental Protection Award for 14 consecutive years, and became the first in the industry to establish an “Eco Echo Award” to cooperate with organizations dedicated to community enhancement and environmental protection.

Through this award, UMC selects proposals from participating organizations to fund so they may be put into action to help ecological preservation. We have collected a variety of outstanding and creative plans to work towards a friendly environment in order to positively influence and protect the local ecology.

In terms of social participation and employee care, UMC has set up an “Energy Saving Service Team” formed by green volunteers. This team’s core functions cover various aspects of energy saving, water saving, environmental protection, and fire protection. At the same time, UMC has also enhanced promotion based on joint efforts with subsidiaries and supply chain partners to help social welfare organizations enjoy energy saving and safety. On the other hand, we continue to implement multiple projects that protect the health of our employees to achieve a balanced work/life ratio, and we have won the 2017 “Top Prize of Happy Enterprise” from Global View Magazine in recognition of this effort. Furthermore, in addition to winning the “Work-Life Balance Award of Ministry of Labor”, we also acquired the Executive Yuan Ministry of Health and Welfare’s “Self-certification of Health Promotion Seal” for all our fabs.

Looking ahead, we will adhere to the spirit of “Make This a Better World” and continue to promote corporate sustainable development and implement social corporate responsibility. We hope to take full advantage of our partnerships and to work with all stakeholders with proper utilization of corporate resources in order to create a sustainable future.



Co-President and CS Committee Chairman

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