WIN's Climate Change Strategies and Concrete Actions

WIN has obtained ISO14001 Environmental Management System certification since 2002 and the scope of certification encompassed businesses in all WIN plants.

Climate change affects the coexistence of humans and other species on Earth and indirectly affects companies' sustainable operations and management strategies. WIN responds to climate change issues and identifies climate change risks and opportunities. We also established corresponding strategies to reduce the impact on companies, sought out opportunities, and embrace challenges. WIN was invited to participate in the survey for the Carbon Disclosure Project (CDP) for the first time in 2018. WIN actively responded to the invitation and disclosed data and information on climate change management and carbon emissions.

Category	Risks and Opportunities	Identification	Strategies
Physical risks	Extreme climate risks	Plants need to consume more electricity to maintain temperature and humidity in clean rooms for stable production Extreme climate may also cause power blackouts	Establish annual energy conservation management objectives to review the performance in management and review meetings
Transition risks	Policy and regulatory risks	Operating costs increased by the GHG cap-and-trade scheme	Adopt high-efficiency local scrubbers for PFCs emissions on new production lines and gradually replace or upgrade existing production lines
Physical risks	Extreme climate risks	Difficulties in transportation cause interruptions in the supply chain and affect production	Establish a backup supplier system and initiate response plans before extreme climate forecasts
Energy opportunities	Reduced operating costs for energy consumption	Energy conservation programs and projects can improve energy efficiency in plants and reduce operating costs for energy consumption	Establish annual energy conservation management objectives to review the performance in management and review meeting and provide awards as incentives
Market opportunities	Incentive measures in the public sector	Apply for the government's GHG Offset Project to gain credits for carbon trade	Replace equipment on production line with high-efficiency local scrubbers for PFCs and gain credit for carbon trade through the government's GHG s Offset Project

The issue of climate change is an issue of ongoing concern at WIN; we are constantly on the lookout for changes in regulations and standards both at home and abroad. We also actively study and consult domestic and international energy conservation and carbon reduction technologies and solutions in order to conduct in-house assessments of their technical feasibility and economic benefits, which are then passed by the resolution of senior executives.

With senior executives having already passed the resolutions, in the future the local scrubbers for PFCs emissions removal in new production lines will all be equipped with models (IPCC designated models) that achieve 90% or higher PFCs removal efficiency. Existing production lines will undergo assessment and be gradually replaced or upgraded so that greenhouse gases from PFCs emissions created during the manufacturing processes can be significantly reduced. We also establish annual energy conservation and carbon emissions reduction objectives each year to constantly execute energy conservation and carbon emissions reduction management solutions and win incentive monetary rewards for outstanding performance. We adopt singular high-efficiency solutions which take part in the Company's "Innovation, Service, and Efficiency Outstanding Awards" with a highest reward of NT$100,000.

Result of the Energy Conservation and Carbon Reduction

Energy conservation and carbon emissions reduction performance in 2018

Year	2017	2018
Performance Indicators	Performance	Reduction Objective		Performance
Electricity consumption (Note) (kWh/6"e wafer)	309.99	↓0.1%	309.68	370.83
PFCs emissions (tonCO2e /6"e wafer)	0.193	↓0.5%	0.192	0.228
Note: The electricity consumption for unit products were unstable as expansion at Fab C continued in 2018. The Company therefore only established reduction objectives for Fab A and Fab B.

Energy conservation and carbon emissions reduction objectives established for 2019

Year	2018	2019
Performance Indicators	Performance	Reduction Objective Compared to 2018
Electricity consumption (kWh/6"e wafer)	521.11	↓0.1%	520.59
PFCs emissions (tonCO2e /6"e wafer)	0.228	↓0.5%	0.226
Note: The 2019 objectives were established for three plants and the 2018 performance indicators differ from those in previous table.

Greenhouse Gas Management

Greenhouse gas emissions are the main causes of climate change. Corporate greenhouse gas management is a main issue of concern to stakeholders. WIN pays close attention to greenhouse gas emissions in all plants. We have implemented annual greenhouse gas inventory for the previous year starting from 2011 to understand the status of greenhouse gas emissions and implement improvement measures from the source to reduce emissions. The inventory of GHG emissions of WIN has been certified by a third-party verification company in accordance with ISO14064-1:2006 standards and we have obtained emissions verification statements. We also submit annual reports in accordance with the "Regulations Governing Reports of Greenhouse Gas Emissions" of the Environmental Protection Administration.

WIN has employed operational controls to set the inventory boundary, covering the management processes and facilities at Fab A and Fab B and Fab C. The calculation of the carbon dioxide equivalent employs the emission specified in IPCC 2006 (Second Edition) and the global warming potential (GWP) measure of the IPCC Fourth Assessment Report in 2007. The greenhouse gas emissions coefficient in this year exceeded the threshold of significance set in the base year by 3%. Therefore, the base year was reset to 2018.

WIN's greenhouse gas category in 2018 was: CO2, CH4, N2O, HFCs, PFCs, SF6, NF3. The plants used zero ozone-depleting substances (ODS). The total greenhouse gas emissions (Scope 1 and Scope 2) in 2018 amounted to 165,700 tons of CO2 equivalent which was a 10% increase from 2017. The main sources of emissions included purchased electric power (61% of total emissions) and the second source of emissions consists of PFCs used in the production process (35% of total emissions). The greenhouse gas emissions intensity in 2018 was 0.66 ton CO2 equivalent/6”e wafer which was an increase from the previous year mainly because of customer purchase order adjustments and new equipment at Fab C which caused the product unit greenhouse gas emissions to increase.

Greenhouse gas emissions and intensity in four years

GHG Reduction Management Strategies

As the manufacturing processes of the semiconductor industry require a large quantity of PFCs, which exhibit a higher value of global warming potential (GWP), WIN's inventory results in 2018 indicate that PFCs used in the processes and electricity consumption accounted for approximately 35% and 61%, respectively, of total GHG emissions. For this reason, management strategies and objectives have been established to address these two issues.

To ensure the comprehensiveness of greenhouse gas emission inventory and to account for comprehensive GHG reduction management, WIN is currently evaluating an inventory on other indirect greenhouse gas emissions (Scope 3).

Greenhouse gas management and reduction strategy

2018 Emissions Inventory Results
Scope	Percentage of Total Emissions	Major Source	Management/Reduction Strategy
Scope 1: Direct emissions	39%	89% from use of PFCs in the production process	Adopt high-efficiency local scrubbers on new production lines and gradually replace or upgrade existing production lines
Scope 2: Indirect energy emissions	61%	100% purchased electricity	Use engineering improvement or equipment replacement to reduce electricity consumption
Scope 3: Other indirect emissions	--	--	Scope 3 emissions calculated in 2019