In UMC’s Sustainability Report released this year, our co-presidents note that semiconductors are vital to modern life and essential in the global industry’s journey towards decarbonization. As a major semiconductor manufacturer, UMC recognizes that we also play a crucial role to harness the power of technology and we must collaborate with value chain partners to fulfill our corporate responsibilities.
Climate change is a pressing issue, and environmental sustainability has become an important priority for businesses. UMC’s efforts to address its environmental impact started more than two decades ago when it established a task force dedicated to reduction of fluorinated greenhouse gas emissions from its operations. Starting from 2010, UMC launched several multi-year programs to guide environmental action in energy saving, water saving, waste reduction, and fluorinated greenhouse gas reduction.After announcing our pledge to achieve net-zero emissions by 2050, UMC continued to deliver on our commitments. Earlier this year, we became the first semiconductor foundry globally to pass a review by the Science Based Targets initiative (SBTi). In November, in the push for a lowcarbon supply chain, UMC announced a new program to support supply chain partners in developing their emissions inventories and setting practical reduction targets.
2022 UMC suppliers conference
Green Innovation Award
In response to the goal set by the Paris Agreement, which aims to limit global warming to below 1.5 degrees Celsius, the United Nations Global Compact (UNGC), the international carbon reduction initiative CDP, and other organizations jointly created the SBTi to calculate the reasonable carbon reduction of companies based on scientific methods. Currently, more than 2,000 companies around the world have obtained official SBTi validation.
According to the carbon reduction target approved by the SBTi, UMC’s total carbon emissions, including direct emissions (Scope 1) and indirect emissions (Scope 2) associated with the purchase of electricity, will be reduced to 75% of the 2020 level (or a reduction of 25%) by 2030, while carbon emissions in the value chain (Scope 3) will be reduced by 12.3% compared to 2020.
Cooperation with suppliers is critical to achieving our climate targets. At this year’s supplier summit, key suppliers GlobalWafers, PDMC, Merck, Applied Materials, and KLA showed support for UMC’s new Supply Chain GreenHouse Gas Inventory Initiative, which is expected to assist 500 suppliers in completing their emissions inventory by 2030.
SC Chien, President and Chief Sustainability Officer of UMC, said that in the face of climate change, UMC has taken practical actions to fight this longterm war. Over the next 30 years, UMC will implement its net-zero strategy, which involves voluntary carbon reduction, 100% renewable energy usage, and investments in net-zero technology, as well as including our value chain partners in the journey towards achieving a more sustainable future.
Three Actions for Net- Zero Emissions
A multi-pronged approach to corporate sustainability
Among listed companies in Taiwan, UMC is one of the very few to be ranked in the top 5% for corporate governance every year since the Taiwan Stock Exchange and Taipei Exchange launched the annual evaluation in 2015. To strengthen governance, UMC’s independent directors account for more than 50% of our board of directors, and our board also boasts the highest percentage of female directors in the semiconductor foundry industry. In addition, the company recently added sustainability performance to metrics for employee compensation, further motivating employees and aligning interests with the company’s ESG goals.
Since 2005, the UMC Science and Culture Foundation has run tutoring centers in Hsinchu and Tainan to help youths and disadvantaged students develop skills and identify their passions. In recognition of UMC’s longterm dedication to the community, the company was awarded the “Social Educational Contribution Award - Group Award” by Taiwan’s Ministry of Education. Moreover, UMC has demonstrated its commitment to biodiversity protection through UMC Eco Echo Award, which has funded 53 environmental protection projects over the past seven years. In this year’s awards, we introduced the inaugural “Green Innovation Award” to support grassroot groups with solutions to climate change and circular economy.
It is also worth mentioning that UMC issued NT$2.1 billion of green bonds in 2021, and signed sustainability-linked loans with CTBC Bank and HSBC in 2022, totaling about NT$6 billion, demonstrating its support for green finance through practical actions.
With its comprehensive investment in ESG, UMC has been listed in the Dow Jones Sustainability Indices - World (DJSI-World) for 15 consecutive years, and achieved the highest score in the global foundry industry. In the 2022 assessment conducted by CDP, UMC achieved the Leadership Level (A List) for both the “Climate Change” and “Water Security”, becoming the only semiconductor company globally to receive a double “A” score. UMC is also the only company in the domestic semiconductor industry to win the Taiwan Corporate Sustainability Report Awards (TCSA) for 15 consecutive years. In addition, the company was recognized by the Environmental Protection Administration’s National Enterprise Environmental Protection Award for the 20th consecutive year, and ranked among the top ten for the Large Enterprise Category in the 2022 Corporate Sustainability Awards issued by Taiwan’s CommonWealth Magazine, demonstrating our outstanding achievements in corporate sustainability. Based on the three major aspects of environment, society and governance, UMC has drawn up a sustainability strategy blueprint for 2030, integrating sustainability into our corporate DNA. By making ESG a company-wide goal, we are moving confidently towards our sustainability vision of “a future that is centered on people, in harmony with the environment, and enables communities to thrive.
UMC Science and Culture Foundation has established tutoring centers in
Hsinchu and Tainan