CS Committee Chairman Message

Dear friends of UMC sustainability:

With the intensifying US-China trade conflict and volatility in international financial markets, 2018 seemed to be the most turbulent year since the 2008-2009 financial crisis. However, in the face of such a challenging external environment, UMC has continued to achieve breakthroughs in technology, capacity and customer development through the joint efforts of all its employees. We have also reached a record high in annual revenue.


Continuing to uphold our vision of "People-oriented, Environmental Symbiosis, and Social Prosperity," we have formulated UMC’s mid and long-term goals for sustainable development for 2020 and 2025. We adhere to the standards of the UN Sustainable Development Goals, and are committed to promoting the concept of environmental, social and governance (ESG) sustainability.

In 2018, UMC continued to see improvement in the implementation of its sustainability management strategies. Our performance has been brilliant. In addition to being listed as a constituent stock on the DJSI World Index of the Dow Jones Sustainability Indices (DJSI) for 11 consecutive years, we were named as a constituent stock by the Taiwan ESG Index three times since its launch. Moreover, we continued to receive awards such as the Corporate Social Responsibility Award from Global Views Monthly and the Taiwan Corporate Sustainability Report Award.

To strengthen corporate governance, UMC has four independent committees under the Board of Directors, namely the Remuneration Committee, the Audit Committee, the Capital Budget Committee and Nomination Committee. These committees serve to strengthen the supervisory function of the Board of Directors, ensure the integrity of the company's operations, and rigorously safeguard stakeholder interests in its corporate governance. In the corporate governance evaluation conducted by the Taiwan Stock Exchange, UMC has also stood out from others since 2015, and continues to be in the top 5%. We are pleased to be consistently recognized by domestic and foreign investors for our persistence in corporate governance.

In terms of environmental sustainability, we regard climate change, water and energy resource management issues as both corporate challenges and opportunities. In 2018, by closely integrating with operational development, we successfully achieved our 3-year objectives of the Green 2020 energy saving, water saving and waste reduction plan. Moreover, we are honored to have won the highest Enterprise Environmental Protection Award from Taiwan's Environmental Protection Administration for 16 consecutive years. UMC's subsidiary in Singapore has also won the Watermark Award for its contribution and commitment to protecting water source. At the same time, we reached Leadership Level in the international CDP climate change disclosure. Our accomplishments not only reduce the environmental burden of product life cycle, but also fulfill the goal of green design, production and operation. Through our efforts, we have demonstrated to the international community the efforts of Taiwanese companies in promoting environmental sustainability.

In terms of creating social value and participation, UMC has invited suppliers to jointly create a green supply chain through the Triple R League initiative to reduce, reuse and recycle. From waste reduction to circular economy, we have jointly expanded the influence of the overall industry, and enhanced the value of sustainable development. In addition, we have also fulfilled the global partner spirit of the UN Sustainable Development Goals by recruiting like-minded companies to join us in the Eco Echo Award and Energy Saving Service Team.

The Eco Echo Award established by UMC has expanded and strengthened over the past three years. Award prizes have increased yearly, and have supported 14 exceptional ecological conservation programs. It has become a very important force in Taiwan's environmental protection.

In 2018, more than 20,000 people participated in the Eco Echo Award activities to jointly protect local ecologies. In addition, our environmental charity, the Energy Saving Service Team, has teams both in UMC’s Hsinchu Headquarters and also in Tainan to connect more professional technicians as volunteer partners. By providing services to the disadvantaged, social welfare organizations and schools, the teams contribute directly to society with their core professional abilities.

I wish to thank our customers, suppliers, shareholders and the community for supporting UMC. We have always promoted corporate sustainability and social responsibility, and will continue to do so. In the future, UMC will further strengthen its advantages and cooperate with our global operating partners and stakeholders. We will work together to exert influence, advance forward on the road towards sustainable operations, and contribute our utmost to the positive development of the overall environment, society and economy.

Co-President and CS Committee Chairman

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