ESG Steering Committee Chairman Message

In the post-epidemic era, despite the challenges posed by global inflation and geopolitical factors, and facing multiple challenges such as soaring raw material prices and declining consumer demand, UMC has remained committed to strengthening its business strategies and sustainable development to ensure steady growth and exert positive influence in all aspects of ESG (Environmental, Social, Governance).

In 2023, by continuing to implement UMC's Sustainability Strategy and Blueprint, we have deeply cultivated the three major aspects of ESG in a comprehensive manner. In terms of environmental sustainability, with reference to the Science Based Targets Initiative, we have announced more ambitious carbon reduction targets for 2030, gradually charting a course toward UMC's goal of 2050 Net-Zero emissions. We are set to establish our first R&D center for waste recycling, the Circular Economy & Recycling Innovation Center, at Southern Taiwan Science Park. Additionally, UMC has announced the Biodiversity and No Deforestation Commitment, which demonstrates our unwavering commitment to minimizing environmental impacts in multiple ways.

In terms of employee care and development, UMC has long provided comprehensive employee benefits, embodying the spirit and principles of our Diversity and Inclusion Statement. We have established a diverse and inclusive workplace culture, striving to create a happy workplace where employees can find roles suited to their skills and interests. Our efforts in this area have been recognized by HR Asia as one of the “Best Companies to Work for in Asia”. Also, in 2023, in order to nurture industry talent, deepen industry-academia collaboration, and support the development of outstanding semiconductor talent, UMC established the Chung-Laung Liu Doctoral Scholarship.

With the growing interest in ESG issues in the global capital markets, we saw a number of international changes in 2023, including the release of the International Financial Reporting Standards Foundation's (IFRS Foundation) Sustainability Disclosure Standards, and the finalization of the U.S. Securities and Exchange Commission's (SEC) Climate-Related Disclosure Rules in 2024. These developments have further strengthened the UMC team's long-held belief that "making ESG a reality" is the right choice. Our adherence to the principle of sustainable business operation and our practical response to the expectations of the environment and society continue to be recognized by the global community.

In 2023, UMC continued to be listed as a constituent of the Dow Jones Sustainability Emerging Markets Index. At the same time, our MSCI ESG Rating was upgraded to AA, making us the only semiconductor company globally to receive a Double A rating from CDP Climate Change and Water Security disclosures for two years in a row. Moreover, UMC has consistently ranked in the top 5% of listed companies in the Corporate Governance Evaluation since its inception in 2015. UMC's exceptional performance has been acknowledged by both domestic and international communities.

Looking forward, we will continue to promote sustainable growth through green innovation and corporate responsibility, provide robust and innovative semiconductor manufacturing services to maintain the resilience and momentum of growth, and make significant contributions to global economic development and a sustainable environment and society.

Finally, we extend our sincere gratitude to everyone who supports UMC's sustainable development. We wish you all the best.