Climate Strategy and Action

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 Pledges Net Zero Emissions by 2050

To ardently respond to the Paris Climate Agreement goal (Limit the global warming not exceeding 1.5°C), UMC announced its 2050 Net Zero pledge in June 2021 as the first semiconductor foundry globally.

To reach net zero by 2050, UMC has three resolutions to cover direct emissions from fab operations (Scope 1), indirect emissions from energy consumption (Scope 2), and indirect emissions from value chain (Scope 3).

 

1.Persistent and proactive carbon emissions reduction

  • Through continually developing advanced foundry process technologies, enhancing productivity and improving energy efficiency, UMC is able to minimize carbon emissions in both manufacturing stage of wafers and using stage of IC end products.

2.100% renewable energy

  • A 3-stage objective of 25% by 2025, 50% by 2030, and 100% by 2050 is set to substantially increase the proportion of consuming renewable energy, UMC will also invite its value chain to support the low-carbon energy transition.

3.Investment in net-zero technologies

  • UMC commits to invest in net zero emissions technologies and participate in Carbon Offset Projects to remove and offset carbon emissions that are inevitable or still subject to technical restrictions.

 

SBT Net-Zero Target Commitment

To confirm pathway to achieve net zero emission by 2050, UMC Group has set science-based targets for emissions reduction pragmatically. In June 2022, it became the first semiconductor foundry globally to pass the Science Based Targets initiative (SBTi) validation review, marking an important step towards a sustainable vision.

 

To accelerate carbon reduction efforts, UMC Group further committed to the SBT net-zero target in 2023. In accordance with the SBTi net-zero standards, UMC adjusted its 2030 GHG reduction targets to reduce direct (Scope 1) and indirect (Scope 2) carbon emissions by 42% with 2020 as the base year by 2030. Additionally, a 25% reduction in carbon emissions within the value chain (Scope 3) is targeted, and by 2050, at least a 90% reduction in emissions with the neutralization or the offset of remaining unavoidable carbon emissions will be achieved to meet the net-zero target.

 

 

Emission

2020

2024

2030

2050

Baseline

Reduction Status

Reduciotn Target

Reduction Target

Offset Target

Scope1 & Scope2

288.3

-31%

-42%

≧95%

≦5%

Scope3

224.5

-23.7%

-25%

≧90%

≦10%

Unit : 10,000 tonnes CO2e

 

 

 

Climate Change Policy
GHG Management
Energy Management

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.

 

GHG Emissions Management

UMC established its GHG inventory standard mechanism in accordance with inventory guidelines defined by domestic and international organizations such as the ISO14064-1:2018, World Resources Institute’s Greenhouse Gas Protocol and GHG Inventory Guidance in Taiwan. Since 2006, the Company has inventoried the GHG emissions of all fabs annually to verify the effectiveness of reduction measures. Furthermore, UMC’s all consolidated subsidiaries introduced the GHG inventory mechanism and conduct third-party verification to fully determine the status of GHG emissions.

 

Through carbon footprint and GHG inventories, the Company learned that the main GHG sources are the fluorinated greenhouse gases (F-GHGs) used in the manufacturing process in Scope 1, and from purchased electricity in Scope 2. These emissions account for about 95% of UMC overall GHG emissions. Therefore, GHG reduction of both F-GHGs and purchased electricity have become the priority for UMC. Through low-carbon production processes, UMC produces products with relatively low carbon footprints. All UMC facilities have implemented reduction plans, and all products use low-carbon processes.

 

Additionally, UMC continues to develop low-power consumption products through the research and development of energy-saving innovative process platforms, which helps avoid carbon emissions during the product end-use phase.

 

In 2024, based on actual production capacity, UMC Group's Scope 1 and Scope 2 greenhouse gas emissions presented an absolute reduction of 31% as compared to the base year (2020). Even under full capacity scenarios, a reduction of 17% is still achievable, demonstrating the Group's commitment to decarbonization regardless of capacity fluctuations, and making a tangible contribution to global greenhouse gas reduction.

 

F-GHGs Reduction

UMC established the F-GHGs Reduction Taskforce in 1999 to promote GHG reduction. Moreover, the company set GHG reduction goals for the various phases of the program, and has continually conducted reduction measures such as installing high performance local scrubbers for F-GHGs in all new equipment, and utilizing NF3 gases in new CVD equipment to keep emission intensity in a downward trend.

 

In addition, based on the Electronic Product Environmental Assessment Tool (EPEAT) 1680.1a TM-2020 standards, jointly created by the US Environmental Protection Agency (EPA) and Institute of Electrical and Electronics Engineers (IEEE), the overall
F-GHG reduction rates achieved at all 12-inch wafer fabs of UMC and its subsidiaries were all higher than the standard threshold requirement of 75%.

 

umc_icon_file UMC IEEE F-GHG Reduction Declaration

 

Intensity of F-GHGs Emissions

CSR_01-en.jpg (170 KB)
 

 

Energy Management

In order to lessen environmental impact of greenhouse effect and minimize energy consumption, UMC set company-wide carbon reduction goals and development plans through the Corporate Sustainability Committee, which coordinates and integrates energy saving and carbon reduction strategies and initiatives of various departments. Regular committee meetings are held to review progress. The Company continually introduces energy saving technologies and implements energy efficiency improvement programs in all facilities. In addition to its strategy of energy conservation, increasing energy efficiency, and expanding installation of renewables, UMC also promotes the implementation of energy management in its offices and common areas through activities, education, and training to cultivate a mindset and habit of energy conservation and GHG emission reduction among employees.

 

Y2024

Amount of Savings

(MWh)

Carbon Reduction

(tCO2e)

Electricity

216,376

102,112

Natural Gas

6,422

1,297

Note:

  1. The statistics of calculation is based on electricity consumption per unit product by 2015 and the scope covers UMC.
  2. CO2 emissions are calculated using the latest local electricity coefficient. Taiwan: 0.494 kg CO2e/KWh; Singapore: 0.412 kgCO2e/KWh
  3. The gas-saving amount estimated is a theoretical amount. The CO2, CH4, N2O emission coefficient of the 2006 IPCC fixed and mobile resource (gas) and gas caloric value from the various local fabs are also incorporated into the carbon emission calculation.
  4. The newly added improvement item was calculated based only on the 12-month performance. For the cross-year project, only the performance generated in 2024 was counted.

 

Promotion of Renewable Energy

To diversify energy sources, UMC is actively installing renewable energy facilities in fabs. Solar energy system is a standard item that will be included in the design and construction of all new fabs. UMC Group joined RE100 as a member, becoming the second semiconductor wafer foundry in this international renewable energy initiative. The Company is committed to using 100% renewable energy by 2050, and has set progressive mid-/long-term goals. UMC intends to support the low-carbon energy transition through solid actions.

 

Renewable Energy Usage Target

CSR_D_en.jpg (144 KB)

 

In addition to continuously improving energy efficiency, UMC Group also plans to use multiple energy sources, actively installs renewable energy in the factory, and lists solar energy systems as a standard design and construction project for new factories. The power generation has increased for five consecutive years. The original plan to install 500kW of solar photovoltaics in 2024 has been adjusted, and the total plan to install about 900kW in 2025. As of 2024, UMC Group has installed a solar photovoltaic system with a peak power generation capacity of about 14,000 kWp, and the estimated annual power generation is 15,000 MWh. However, solar photovoltaics are mainly affected by factors such as climate. For example, there will be many typhoons passing through Taiwan in 2024, which will affect the power generation. This power generation is an estimated value rather than a fixed value. In 2024, the self-use power generation of UMC Group's solar photovoltaic system totaled 14,399 MWh. From the end of 2024, all solar photovoltaic power generation will be converted to self-generation and self-use, and will continue to increase self-generation and self-use green electricity to support clean energy.

 

2025_CSR.jpg (16 KB)

 

Self-use Solar Power Generation

CSR_02-en.jpg (179 KB)

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