CORPORATE SUSTAINABILITY

Stakeholder Engagement

• Communication with Stakeholders

Based on the 5 major principles of the AA1000 SES-2011 Stakeholder Engagement Standard (SES), UMC identified 7 major categories of stakeholders.


Stakeholder communication method

Stakeholder

Communication Method

Key Concern

Employees

√ CEO – employee forums, , secretary forums, Benefits Committee conference, factory dialogues, labor relations, communication platforms
√ eUMC information website for employees, BBS message boards, sexual harassment complaint channel, mailbox for reporting fraud or professional ethics violation, e-suggestion and feedback platform, confidential complaint system, 12885ER help hotline
√ My UMC website, UMC CSR Newsletter
√ Employee satisfaction survey on benefits measures, service satisfaction survey, HR satisfaction surveys, employee recognition survey

√ Compensation and benefits
√ Economic Performance
√ Employee Communication
√ Human rights
√ Occupational Health and Safety

Customers

√ Online Service Platform
√ Regular communication and discussion meetings
√ Questionnaire response
√ On-site audit and discussion
√ Voice of Customer (VOC) instant customer online complaint system
√ Customer satisfaction monitoring

√ Customer service
√ Innovation management
√ Customer privacy
√ Ethics and integrity

Investors

General Shareholders:
√ Annual general shareholder meeting
√ Quarterly investor conferences
√ Financial report
Corporate shareholders:
√ Quarterly domestic and overseas investor conferences
√ Domestic and overseas seminar for investing institutions

√ Labor relations
√ Corporate governance
√ Sustainable development strategies
√ Economic performance
√ Ethics and integrity

Suppliers

√ Review reports or meetings
√ Questionnaires and audit visits
√ Jointly implement ESGand corporate social responsibility program with suppliers

√ Sustainable development strategies
√ Compliance with regulations
√ Ethics and integrity
√ Human rights
√ Supplier Assessment

Community/ Non-profit Organization

√ Assigned a department for community communication
√ Participate regularly in community meetings
√ Visit community leaders and residents during holidays
√ Invite community residents to participate in the company's Family Day activities
√ Participate in community activities or seminars
√ Participate in the operations of outside associations

√ Compliance with regulations
√ Occupational health and safety
√ Human rights
√ Environmental management
√ Local Community

Government agencies

√ Take part in the public hearings and seminars held by competent authorities
√ Take part in the operations of the Hsinchu Science Park and the SPA

√ Compliance with regulations
√ Environmental management
√ Occupational Health and Safety
√ Chemical use
√ Energy use

media

√ Press conference
√ Press Releases
√ Company Website

√ Employer-Employee Relations
√ Waste Water Discharge
√ Compensation and Benefits
√ Customer Privacy
√ Waste


Mechanisms for Stakeholder Communication

To maintain effective communication with stakeholders and meet their request for sustainability information, UMC conducts materiality analysis.

Step 1

Collect sustainability issues

Adopt the GRI G 4.0 guidelines, ISO 26000 social responsibility standard guidelines, UN Global Compact and domestic and international sustainability assessments as basis for issues.

Step 2

Compile sustainability issues

Members of the Corporate Sustainability Committee Report Group compile and analyze issues.

Step 3

Survey stakeholders concerns

Conduct questionnaire surveys to determine the degree of stakeholder concern over the various types of sustainability issues so that stakeholders can express their needs in terms of sustainable information.

Step 4

Analyze impact of issues on company operations

The Sustainability Report Group analyzes the impact of issues on company operations sustainability, and screens for materiality issues.

Step 5

Rank materiality issues

Multiply the score for degree of stakeholder concern over each issue and the score for its respective impact on company operation. Rank issues for disclosure.

Step 6

Discussion and review

1. Following materiality analysis, the company discusses and decides on the disclosure ranking of sustainability issues.
2. The Sustainability Committee shall conduct management review for material issues related to the economy, environment, and society.

The CS committee annually reviews the concerns of important stakeholders and relative issues. Each committee then proposes suitable solutions

Item

Content

Frequency

Identified major stakeholders issues and concerns

Integrated and coordinated by the Corporate Sustainability Committee

Annually

Stakeholders communication plan and implementation

• Consultation and communication channels with stakeholders are established by respective sub-committees.

• Designated personnel to receive, record and reply messages from stakeholders and to come up with appropriate responding measures.

According to plan

Assessment of stakeholder communication outcome

Stakeholder communication outcome reported, and key issues reviewed and responded to Corporate Sustainability Committee.

Bi-annually

Public disclosure

Annual financial reports, corporate social responsibility report, etc.

Annually

1. Press Releases
2. UMC official website

As Required







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