Stakeholder Engagement

Send an email report to the email address whistleblower@umc.com which will then automatically forward a copy of the report to the Audit Committee, ADT Division Director, HR Division Director, and IPLA Division Director

Determination of Material Topics

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

Step 1: Understand UMC's Organizational Context

Understand links between UMC's activities, business relationships and the sustainability context in which these occur. Identify its important stakeholders through the overview aforementioned.

Identify 7 types of important stakeholders
Collect Sustainability Issues from various sources of sustainability issues: GRI Standards, industry-related special issues, and concerned items in domestic/international sustainability evaluation, including DJSI or MSCI, SASB Index, RBA Code of Conduct, and etc.

Step 2: Identify Actual and Potential Impacts

According to UMC’s self-developed materiality analysis methodology, in the process of determining materiality topics, we undertake inventories to assess the actual and potential positive/negative impacts caused by UMC ‘s activities and business relationships on the economy, environment, and society
(ESG True Value Evaluation), as well as these impacts on the Company’s operation, which covers the concept of Double Materiality. Through impacts description, the Company is able to define the possible impact patterns, and where they occur in the value chain.

Inventories were taken based on sustainability issues. After discussing with external experts/advisors, positive impacts and negative impacts have been identified.
Review each impact's corresponding management policies and implementation measures to prevent the acts that will trigger the impacts, or to formulate remedial procedures to mitigate the extent of the impacts.

Step 3: Assess the Significance of the Impacts

Conduct questionnaire surveys to quantity the impact assessment of materiality. Survey of stakeholders’ concerns

External stakeholders: Including governmental agency, investor, customers, and suppliers in order to provide external opinions on identifying the material issues to the Company. And responses from employees.
Survey of internal impact

(1) Management representatives

(2) Team members of Sustainability Report Preparation

Industry major issues concerned by the international rating were also considered as weighting weights while external expert consultants reviewed the results of the surveys in order to keep in line with international trends. Each sustainability issue has a pair of score, the degree of severity and the likelihood of occurrence, respectively as the value of X-axis and Y-axis.

Step 4: Prioritize Significant Impacts

A materiality matrix is created with the degree of severity as the X-axis and likelihood of occurrence as the Y-axis to analyze the significant of sustainability impacts in order to prioritize the significant impacts. The material analysis result was confirmed after being submitted to and approved by the CSO.

Step 5: Management and Disclosure

The results of materiality analysis will serve as a reference for the Company to determine short-, medium- and long-term Sustainability Strategy Blueprints and Goals, to ensure that relevant strategies and goals encompass the expectations of stakeholders, and have responded to the identification and management of sustainability impacts. Moreover, the Company continues to develop and assess relevant procedures to integrate material assessment, which might identify
significant impacts, into the Company's enterprise risk management system and framework, which shall be regularly reviewed.

In principle, UMC conducts materiality analysis every two years, and carries out flexible discussions about and reviews of material topics on a yearly basis depending on actual needs or external stakeholder engagement results, to ensure that the Company's operations are in line with actual trends and meeting stakeholders' expectations.

2022 Outcomes

There were 12 material topics identified in 2022, representing sustainability issues for which UMC's activities or business relationship have a significant impact on the economy, environment, and society at present or in the future. For details please refer to 2022 UMC Sustainability Report

positive_impacts

nagative_impacts

Case Study- Material Issues for Enterprise Value Creation

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

Employee

Communication Method

Company Town Hall meetings, Secretary forums, Welfare committee meetings, Employer-employee meetings, Communication platforms and Factory & Division meetings
eUMC information website for employees, BBS message boards, sexual harassment complaint hotline, mailbox for reporting fraud or professional ethics violation, e-suggestion and feedback platform, confidential complaint system, extension 12885 - ER help hotline
My UMC website, UMC CSR Newsletter
Employee satisfaction survey on benefits measures, service satisfaction survey, HR satisfaction surveys, employee recognition survey

Key Concern

Information Security and Privacy Protection
Legal Compliance
Employee Safety and Health
Customer Service Quality
Ethical Corporate Management

Customer
Communication Method	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
Key Concern	Legal Compliance Ethical Corporate Management Customer Service Quality Information Security and Privacy Protection Employee Safety and Health

Investor
Communication Method	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 - Written or face-to-face communication
Key Concern	Legal Compliance Air Pollution Control Waste and Resource Utilization Efficiency Customer Service Quality Product Liability and Lifecycle Assessment

Supplier
Communication Method	Review reports or meetings Environmental health and safety, and corporate social responsibility related management briefings Questionnaires and audit visits Jointly implement ESG and corporate social responsibility program with suppliers
Key Concern	Information Security and Privacy Protection Ethical Corporate Management Legal Compliance Waste and Resource Utilization Efficiency Energy Management

Community / Non-profit Organization
Communication Method	The assigned department for community communication 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
Key Concern	Contribution and Participation in Society Legal Compliance Information Security and Privacy Protection Human Rights Water and Wastewater Management

Governmental Agency
Communication Method	Participate in parks and Science Park Administration functional organizations for operations Participate in public hearings and symposiums organized by governmental authorities
Key Concern	Legal Compliance Employee safety and health Contribution and Participation in Society Human Rights Water and Wastewater Management

Media
Communication Method	Press conference Press Releases Company Website
Key Concern	Energy Management Waste and Resource Utilization Efficiency Water and Wastewater Management, Human Capital Development Innovation Management and Intellectual Property Rights Protection

Industry and Trade Associations

Communication Method

Participation in association meetings, events, and initiatives
Response to invitation for member feedback

UMC Public Affairs Engagement Policy

Climate Change Positions of Trade &
Industry Associations

Procedure for Validating Sustainable
Development Positions

*According to the "UMC Procedure for Validating Sustainable Development Positions of Industry Associations and Organizations," UMC has confirmed that the industry associations and organizations it is affiliated with share the same stance on climate change and human rights as UMC.

Key Concern

Talent Attraction and Retention
Legal Compliance
Innovation Management and Intellectual Property Rights Protection
Procurement and Supplier Management
Climate Strategy and Action

Does UMC have a policy (or statement of commitment) for sustainable development related matters ?

In order to fulfill corporate social responsibility initiatives and to promote economic, environmental, and social advancement for purposes of sustainable development, UMC established its Sustainable Development Best Practice Principles. For more information, please visit Corporate Governance
Does UMC have a department in charge of promotion to work on sustainable development affairs ?

For the purpose of managing sustainable development initiatives, UMC establishes ESG Steering Committee and Corporate Sustainability Committee to be in charge of proposing and enforcing the

sustainable development mission & vision, systems, relevant management guidelines, and concrete promotional plans and to report on the same to the Board of Directors on a periodic basis. For more information, please visit Corporate Sustainability Governance.
Does UMC disclose information related to sustainable development regularly ?

Any significant sustainability information will be disclosed on our website and through press releases. UMC also publishes its Annual Financial Report and Sustainability Report based on major UMC corporate sustainability issues and stakeholder concerns.
Is UMC's Sustainability Report verified by a 3rd party ?

The Sustainability Report is compiled according to the GRI standards of the Global Reporting Initiative (GRI) for global sustainability reports, and verified by a 3^rd party according to the Account Ability 1000 Assurance Standard.
Has UMC introduced any management systems in order to implement sustainability practice?

UMC follows ISO 26000 (Social Responsibility Guidance), Responsible Business Alliance Code of Conduct and introduces various management systems to implement sustainability practice.

The management systems include ISO 14001, ISO 45001, ISO 9001, ISO / TS 16949, IECQ HSPM QC 080000, ISO 50001, ISO 22301, ISO 15408, etc. For more information, please visit Awards and Certificates
Has UMC received any awards or recognition for sustainability or ESG achievements ?

UMC has regularly received numerous sustainability-related awards for much of the past decade, such as being selected as a DJSI global component for many years, listed in MSCI ACWI ESG Leaders Index, Channel NewsAsia Sustainability Top 100 Ranking, winning the National Sustainable Development Award, Taiwan Corporate Sustainability Awards, Corporate Social Responsibility Award, etc. For more information, please visit Awards

Overview