CORPORATE SUSTAINABILITY

Global Warming Change Initiative

Green House Gas Reduction

In 2010, UMC led the industry by implementing the UMC Climate Change Policy as its highest guiding principle. In addition, the company formulated the UMC Low-Carbon Commitment guidelines for carbon reduction plans.
UMC Climate Change Policy

UMC Low-Carbon Commitment

For energy and greenhouse gas management, UMC has recently formulated various environmental protection objectives for various phases and dimensions along with actual implementation plans. These objectives and plans were then jointly discussed with the Corporate Sustainability Committee. Discussion outcomes and resolutions would then be ratified by the Committee Chairperson before implementation.

GHG Reduction Target and Plan

According to the product carbon footprint and greenhouse gas emissions inventory results, the major contributor of UMC's product carbon footprint is manufacturing, with the major sources being electricity and FC gases. UMC has thus formulated plans to reduce electricity consumption and FC emissions in order to reduce its carbon footprint.

The reduction targets and plans are below:

Reduction Goal

2016 Actual Reduction

Compared to 2010, reduce intensity of fluorinated greenhouse gas emissions by 36% in 2020.

Reduced intensity of fluorinated greenhouse gas emissions by 40%.

Compared to 2015, reduce intensity of electricity consumption by 10% in 2020.

Additional reduction of 67,212Mwh of electricity consumption for the year, reaching the annual targeted goal.
(To reduce electricity consumption of each unit by 2%)

FCs Reduction

In addition to carbon reduction each year, UMC established the Fluorinated Greenhouse Gas Reduction Taskforce in 1999 to promote greenhouse gas reduction. Moreover, the company set greenhouse gas reduction goals for the various phases of the program, and currently, the reduction program is in Stage 3. UMC shall continue to implement FCs and Fluorinated GHG reduction projects. FCs reduction in 2016 reached 1,047,000 tons which was a 40% reduction compared to 2010. Such results showed that UMC managed to achieve Phase 3 objectives ahead of schedule. UMC has already attained the reduction goal for 2020, which is 30% lower than 2010 levels, as stipulated by the World Semiconductor Council. At the current stage, international trend and national policy will both be taken into consideration in planning the new reduction goal for the future.



Future Action Plans

·

New factories introduce new machines with lower greenhouse gas emissions, such as CVD machines using NF3 gas and RPS (Remote Plasma System) devices, in order to achieve the highest efficiency and lowest emissions.

·

All new equipment shall be installed with a high performance local scrubber for FC gases.


Energy Reduction and Management

UMC's energy consumption mainly relies on purchased electricity, followed by a small amount of natural gas; indirect energy is not used. The largest source of UMC's greenhouse gas emissions is from purchased electricity. Therefore, reducing energy consumption is the effective key to alleviate the environmental impact caused by the greenhouse effect. To effectively drive energy saving activities, UMC formed an energy saving committee chaired by the CEO. The committee will formulate plans, set targets, and coordinate with all departments to drive cost saving strategies and implement action plans. The committee will hold regular meetings to track schedule, verify performance, explore new energy saving technology, and develop improvement plans to achieve noteworthy energy savings.

Total power savings in 2016

Equivalent CO2 reduction

67,212 Mwh

About 35,488 tons


Total natural gas savings in 2016

Equivalent CO2 reduction

15,628 Mwh

About 3,074 tons

In addition to being committed to energy reduction management, UMC has also constructed renewable energy to partially replace other power sources. As of 2016, UMC has installed the largest number of solar power systems among semiconductor companies in Taiwan, with its systems generating a total of 2,793 kWp.

The overall solar power output for UMC and its subsidiary HJTC fab (8N) in recent years

Solar power output in recent years

Furthermore, UMC promotes energy saving programs in the office and public areas, accompanied with promotional activities and training to enhance employees' ideas and habits in energy saving and greenhouse gas reduction.

GHG Reduction Collaboration

Collaborating with other companies and government organizations

UMC and other companies participated in the climate change risk assessment project which gained the support of the Science Park Industrial Association, Science Park Administration, National Science Council, Water Resources Agency, Taipower, and Taiwan Water Corporation to re-evaluate risks caused by climate change and extreme weather, including: interruptions to water supply, power supply, gas supply, transportation and communication, flood damage, wind damage, and drought. these re-evaluations will be used to develop response and improvement programs for implementation in the Science Parks.

Collaborating with supply chain

UMC not only engages in climate change management but also requests and assists suppliers to follow our lead. Our measures are as follows:

·

Carbon risk management- Suppliers are required to collect carbon inventory data in their manufacturing plants, develop a product-based carbon footprint and provide carbon reduction performance data.

·

Water risk water management- Suppliers are required to collect water inventory data in their manufacturing plants to establish a water footprint, and to provide a specific water resource management plan.

·

Other climate change risk management- Due to the increased risk of storms, water shortage, flooding and transportation and communication disruption in recent years resulting from global climate change, UMC requires suppliers to prepare contingency plans, such as support from overseas production, to reduce the impact of such events. Our first-tier suppliers are also required to manage their suppliers.



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