CEO Message

Dear Friends Interested in the Sustainability of UMC:

In 2015, major economies have continued to face structural issues characterized by high debt, low inflation, and poor employment rates as well as sluggish growth of the global economy. However, UMC operations continued to make steady progress with constant breakthroughs in technologies, production capacity, and customer development. We have also continued to make improvements to our corporate social responsibility (CSR) efforts, and I would like to share with you our vision and strategies of key sustainability topics in UMC as well as the outcomes of our activities.

For corporate governance, UMC has stipulated the UMC Corporate Governance Practice Principles, UMC Ethical Corporate Management Best Practice Principles, and UMC Corporate Social Responsibility Principles to provide a referential basis for establishing an effective corporate governance framework aimed at securing our shareholders’ equities, enhancing the functions of our Board of Directors, enforcing the functions of our Audit Committee, respecting the rights of our stakeholders, and improving the transparency of our information. In 2015, we not only achieved the highest possible rating of A++ in information disclosure assessment for publicly traded companies, but also attained the prestigious top 5% in the 1st corporate governance assessment conducted by TWSE.

For environmental sustainability and social participation, UMC has continued to uphold the visions of harmonious co-existence and co-prosperity with our surrounding environment and society by working closely with every staff and employee. In 2015, UMC successfully met various objectives prescribed by the 369+ Energy Conservation Project. Meanwhile, we also declared our Green 2020 Project during carbon neutrality and environmental protection activities held on UMC Earth Day. The goal of this project was to achieve another 10% reduction in water, power consumption and waste generation by 2020. In addition to attaining the ROC Enterprises Environmental Protection Award for 13 consecutive years, UMC also attained the highest score in the Taiwanese semiconductor industry for the Climate Disclosure Leadership Index (CDLI) of the international Carbon Disclosure Project. Our Carbon Performance Band attained the highest rating amongst all participating Taiwanese enterprises as well. For social participation, we have continued to operate UMC talent training programs, encourage volunteer culture, and implement social club assessments to actively promote the Eco-echo Ecological Conservation Hope Project. We worked with the Society of Wilderness (SOW) to preserve the habitats of Sauter’s Brown Frog (Rana sauteri) in the mountainous regions of Hsinchu. We also established the Energy Conservation Service Team in 2015 to provide energy saving and safety improvement services to the underprivileged. These efforts have expanded our influence and contributed towards a positive feedback cycle for both our enterprise as well as surrounding communities.

For our overall performance, we have been given the highest rating of Gold Class Enterprise for the Dow Jones Sustainability Index (DJSI) and attained the 1st Rank in Taiwan and 2nd Rank in Asia in the Channel NewsAsia Sustainability Top 100 Ranking. Our other accolades include the Taiwan Top 10 Sustainable Company Award, CommonWealth Magazine’s Corporate Citizenship Award, and Global Views Magazine’s CSR Award. These achievements testify the deeply rooted culture of sustainability and continuous improvements in UMC and the fact that our efforts have been acknowledged and praised in Taiwan as well as internationally.

As UMC continues to face countless risks, growing competition, and challenges in the future, we remain committed to pursuing continuing improvements for our existing advantages and foundations. We hope to work with various sectors, gather outstanding and innovative plans, and generate sustainable and positive energies to maximize the benefits provided to our employees, customers, and shareholders. Such efforts will provide long-term growth and ensure sustainable futures for both our ecology and society.

CEO and CS Committee Chairman

This article is extracted from the 2015 UMC CSR report

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