CORPORATE SUSTAINABILITY

CS Committee Chairman Message

To everyone who is concerned with sustainability at UMC:

Focus, Nurture, and Continuity make up the core attitude of UMC in promoting corporate sustainability. As a global leader in the semiconductor industry, not only do we pursue stable growth in our core businesses, but we also uphold the vision of "People-oriented, Environmental Symbiosis, and Social Prosperity." UMC is committed to ESG, "Environment, Society, and Governance," a three-pronged sustainable concept to promote the implementation of the 17 global Sustainable Development Goals (SDGs) of the United Nations. In 2017, UMC continued to improve its performance in the implementation of sustainable management strategies, achieving productive results. In addition to being listed as a Dow Jones Sustainability World Index component for ten consecutive years, we have continued to receive the Corporate Citizenship Award from Commonwealth Magazine as well as the Corporate Social Responsibility Award from Global Views Monthly. At the same time, we are the only company to receive the Republic of China National Sustainable Development Award for overall corporate performance three times since the award's inception.

 

In terms of strengthening corporate governance, the company has recently established the "Nomination Committee" and has conducted initial external performance evaluation of the Board. These measures are in addition to the operational supervision and management done by the "Remuneration Committee," "Audit Committee," and the "Capital Budget Committee," created by the Board of Directors. The company's purpose is to further promote the transparency of corporate governance and operations as well as to safeguard stakeholder interests. In 2017, UMC's corporate governance performance continued to be rated by the Dow Jones Sustainability Index (DJSI) as "better than the average" in terms of the semiconductor industry's performance in emerging markets. UMC's corporate governance evaluations conducted by the Taiwan Stock Exchange garnered the honor of being in the top 5% for four consecutive years; our efforts are recognized both in Taiwan and around the world.

In terms of environmental sustainability, we consider the issues of climate change, water and energy resources management as corporate challenges and opportunities and integrate them closely with operational development. In 2017, we successfully reached the second-year goal of the "Green 2020" plan for saving electricity and water as well as reducing waste. For its efforts, the company received for the 15th consecutive year the "Enterprise Environmental Protection Award," the highest recognition given by the country in the field of environmental protection. At the same time, the company was also been given "Leadership Level" designation both for international CDP climate change and water disclosure. These commendable achievements demonstrate UMC's long-term active efforts in environmental protection. We have also served as an outstanding model for a variety of different sectors.

In the area of social value creation and participation, UMC has invited supply partners to carry out Reuse, Recycle and Reduce (waste, energy and resource reduction) through the environmental 3R League initiative. Furthermore, we advocate for the realization of a circular economy and the upgrading of the value green supply chain. In addition, we have fully embraced the spirit of "Global Partnership" of the United Nations Sustainable Development Goals and have called for companies with similar ideas to participate in the Green Eco Echo Award and Energy Saving Service Team, bringing together people and talent. The Green Eco Echo Award promoted by UMC in 2016 has gradually expanded and gained momentum. Not only has the cash prize doubled, enabling more outstanding ecological conservation plans to be realized, but it has also raised public awareness towards environmental sustainability. Furthermore, the services done by the Energy Saving Service Team have encompassed the whole of Taiwan. We take our expertise in energy conservation and carbon reduction deeper into communities, creating environments that address both environmental protection and personal comfort for disadvantaged groups and the social workers who serve them. By raising the quality of care, UMC believes that this is the most direct and most effective testimony of social participation.

Looking forward, UMC will continue strengthening its advantages, using its core competencies to realize the UN's sustainable development goals, promoting sustainable cooperation and consolidating capabilities to exert a strong positive influence to make a world a better place.



Co-President and CS Committee Chairman

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