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I Understand
Continuing to uphold our vision of "People-oriented, Environmental Symbiosis, and Social Prosperity," we are committed to promoting the concept of environmental, social and governance (ESG) sustainability.

Continuing to uphold our vision of "People-oriented, Environmental Symbiosis, and Social Prosperity," we are committed to promoting the concept of environmental, social and governance (ESG) sustainability.

To those who are concerned about UMC sustainability:

I am very pleased to share with you UMC’s achievements towards sustainability. Despite the global uncertainties caused by geopolitical threats as well as the COVID-19 epidemic, all UMC employees continue to work together, seeking for various growth opportunities in technology, manufacturing, business and sustainable development. In 2019, we not only set new medium- and long-term goals for UMC's sustainable development by 2025 that are in line with the United Nations Sustainable Development Goals (UN SDGs), but also took the lead in the diversification of 12-inch production by acquiring USJC fab in Japan, increasing our cost-effective production capacity to serve the company's long-term growth needs.

2019 was also the year that UMC achieved fruitful results in the implementation of its sustainable management strategy. We have been listed on the "DJSI-World" of the Dow Jones Sustainability Indices (DJSI) for 12 consecutive years, keeping pace with the world's top companies. In Taiwan, we continue to receive the greatest honor of being selected for the "FTSE4Good TIP Taiwan ESG Index" and winning the "Taiwan Corporate Sustainability Report Award" every year. Moreover, we continue to cultivate the aspects of "environment, society and governance," and have attracted tremendous external recognition.

In terms of environmental sustainability, UMC regards climate change, water and energy resource management issues as challenges and opportunities for the company, and integrates them closely with operational development. In 2019, we successfully reached the 4th-year goals of the "Green 2020" project in power-saving, water-saving as well as waste reduction, and have received the greatest honor of being awarded with the "Enterprise Environmental Protection Award," issued by the Environmental Protection Administration for 17 consecutive years. On the other hand, through the introduction of innovative solutions such as Industry 4.0, artificial intelligence and mechanical learning, we have comprehensively improved energy usage efficiency, and won the "Energy Saving Leadership Award" issued by Taiwan’s Ministry of Economic Affairs. UMC’s contribution to global climate change mitigation and adaptation has also been recognized internationally by reaching the "Leadership Level” in CDP assessment, the highest score achieved by domestic companies in the foundry industry. Furthermore, based on environmental friendliness and employee responsibility, UMC introduced green chemicals with low environment and health impacts through technological innovations and established a standard traceability management process to achieve the goal of green design and clean production. In 2019, UMC was awarded the first "Green Chemical Application and Innovation Award" by the government of Taiwan, demonstrating UMC's outstanding execution in environmental sustainability management.

With regards to social value creation and participation, through the initiative of "Triple R League," UMC invited suppliers to build a green supply chain, and promote circular economy in order to reduce, reuse and recycle. In 2019, a total of 39 suppliers participated in the event. This exchange platform was implemented to jointly expand the influence of the overall industry and enhance the value of sustainable development. In addition, we also brought the spirit of "global partnership" of the UN sustainable development goals into full play by calling on companies with the same belief to participate in the Eco Echo Award and the Energy Saving Service Team. With the support of UMC’s partners, the Eco Echo Award initiated by UMC has been held for 4 consecutive years. The number of project submissions has reached a record high, and a total of 19 large ecological conservation projects have been supported by the Award to produce fruitful results in places throughout Taiwan and the offshore island Penghu, making the Award a friendly promoter in domestic ecology conservation. Moreover, the Youth Environmental Action Award, newly established in 2019, also provided opportunities for young people to voice their opinions on environmental issues, encouraging more youth to engage in environmental protection. The UMC Energy Saving Service Team provides services in environmental protection and public welfare and established a sub-division in 2019, expanding its services from Hsinchu to Tainan. The Team connected more professional and technical operating partners to work together as volunteers to provide services to disadvantaged groups, social welfare organizations and schools, giving back to the communities directly with core competencies.

In strengthening of corporate governance, UMC continues to pay attention to the independence and balance of directors and also established four committees under the board of directors: "Audit Committee," "Remuneration Committee," "Capital Budget Committee" and "Nomination Committee" to conduct performance evaluation outside of the board of directors, improving operation supervision and transparency to ensure the rights and interests of all shareholders. In 2019, in order to continuously strengthen corporate governance and improve the effectiveness of the board of directors, UMC newly designated a Chief Corporate Governance Officer, and formulated the "Policy for Nomination and Election of Directors" and the "Skill Matrix of Board Members" by the Nomination Committee, serving as the reference for the composition of the board of directors. In the corporate governance evaluation conducted by the domestic stock exchange, UMC is also one of the few listed companies that has maintained positioning in the top 5% in each year since the implementation of the corporate governance evaluation in 2015.

Looking ahead, as UMC enters its 40th anniversary, we will continue to uphold our vision of "People-oriented, Environmental Symbiosis, and Social Prosperity," strengthen our own advantages, and work together with global operating partners and stakeholders to exercise our influence. We will also continue to advance on the road to corporate sustainability and make the greatest contribution to the positive development of the overall environment, society and economy.



Co-President and CS Committee Chairman