Environment Sustainability

WIN attaches importance to climate change issues and is dedicating efforts to low carbon transformation. We launched the net zero emissions plan in 2021, and established a Working Group for Carbon and Energy Reduction with the support of Board of Directors and senior executives. In 2022, we referenced and complied with the SBTi Corporate Net-Zero Standard, which uses 2021 as the base year, and set SBTi for Scope 1 and Scope 2 emissions that imiting global warming to within 1.5°C (linear reduction at 4.2% a year) with the long-term goal to achieve an absolute reduction of 90% Scope 1+2+3 emissions in 2050 compared with the base year of 2021. We will take related measures to neutralize the remaining carbon emissions and achieve net zero emissions, showing our determination to reduce carbon emissions through our net zero strategy. WIN's Working Group for Carbon and Energy Reduction reviews whether the net zero emission pathway is consistent with actual emissions, and pays attention to carbon reduction technologies and changes in issues to adjust its net zero strategy.

In response to global climate change and low-carbon transition, WIN actively pays attention to the risks and derived opportunities that climate change may bring. With the support of Director on board and senior executives, WIN assembled members of related departments and established the Task Force on Climate-related Financial Disclosures (TCFD) team to establish mechanisms and strengthen operations, and formulate strategies and actions in response to climate change based on four aspects: governance, strategy, risk management, and metrics and target. We identified potential risks that may threaten the Company as well as opportunities and the impact of climate-related risks and opportunities on the Company, and regularly review quantitative targets and performance indicators.

In 2022, the TCFD team identified 31 climate change risks, of which 25 were related to the Company and 9 were included as risks of concern, and 22 climate change opportunities, of which 13 were related to the Company and 9 were included as opportunities of concern.

WIN set related policies and environmental protection targets, and encourages employees to propose carbon reduction, water conservation, and waste reduction plans and develop energy-saving products and services to mitigate global climate emergencies and create a corporate culture of environmental sustainability. Employees that make proposals can win a prize in the EHS proposal contest, employees can also participate the Company's "Innovation / Service / Efficiency Award" with total rewards amounting to NT$660,000 for environmental sustainability proposals in 2022. Furthermore, the Company actively responds to the Carbon Disclosure Project (CDP) and climate questionnaire of the DJSI, disclosing information on climate issue management and carbon emission data. WIN was selected into the DJSI World Index for the third consecutive year in 2022, and was also rated at the "Leadership Level" by the CDP for the first time.

Greenhouse Gas Management

Greenhouse gas emissions are the main cause of climate emergencies. Corporate greenhouse gas management is a main issue of concern to stakeholders. Since 2011, WIN established a standard for GHG inventories in accordance with ISO 14064 and the Guidelines for Greenhouse Gas Inventories by the Environmental Protection Administration of the Executive Yuan. We regularly inventory the greenhouse gas emissions of our fabs every year and pass third-party verifications. SGS Taiwan Ltd. conducted the inventory in 2022 to fully understand WIN's greenhouse gas usage and to verify the results of reduction. WIN has employed operational controls to set the inventory boundary, covering the management processes and facilities at all fabs (Fab A, Fab B, and Fab C). The greenhouse gases covered by the inventory are: CO₂、CH₄、N₂O、HFCs、PFCs、SF₆、NF₃. The plants used zero ozone-depleting substances (ODS).

Direct and Energy Indirect Greenhouse Gas Emissions (Scope 1 and scope 2)

To understand other indirect greenhouse gas emissions (Scope 3) and identify the major emission sources to plan carbon reduction strategies, we referred to the ISO 14064:2018 standard, EPA's carbon footprint database, and WBCSD's technical documents for inventories in calculating main and other indirect GHG emissions in 2020, passing external verification according to ISO 14064:2018 standards every year starting in 2021. In 2022, other indirect GHG emissions was 49,735 tons CO2e. Inventory results are shown in the table below, in which products and services purchased upstream had the highest GHG emissions, followed by GHG emissions from purchased fuel and energy.

Other Indirect Greenhouse Gas Emissions (Scope 3)

GHG Reduction Strategy

WIN is actively reducing GHG emissions and uses quantified data of the inventory to find carbon emission hot spots and search for reduction opportunities. WIN established the Energy Conservation and Carbon Reduction Task Force headed by a vice president. The task force convenes quarterly meetings to review the implementation status and future plans, and actively plans and implements GHG reduction plans to achieve the goal of net zero emissions.

According to the results of the 2022 GHG inventory, the main source of direct GHG emissions is the use of PFCs in the production process; PCFs have high GWP. The source of energy indirect GHF emissions is electricity usage. Thus, to promote GHG reduction, we focus on the reducing PFCs and electricity usage, and also formulated management strategies and goals for the two items.

2022 Emissions Inventory Results

A total of 24 energy conservation plans were completed in 2022, which reduced electricity consumption by 1,558,555 kWh and reduced carbon emissions by 1,266 tons CO2.

Renewable Energy Planning

• WIN invested NT$14.7 million in a solar PV system with installed capacity of 250 kW in 2022, and the zero carbon renewable energy is supplied to Fab C.
• The system is expected to begin generating 300,000 kWh of renewable energy in 2024 and will reduce carbon emissions by 153 metric tons.

Water used in all WIN"s plants is sourced from the catchment area of Shihmen Reservoir. Although the Taoyuan area has been deemed as a low water stress area, WIN uses the water storage capacity information provided by the Shihmen Reservoir Administration to allocate water supply and optimize operations. In addition to maintaining stable water supply for all plants, we also seek to prevent the impact on water shortage areas during droughts. We also continue to increase the amount of recycled water in the fab and actively participated in the "Wenqing Water Park Water Recycling Center Water Reclamation Project" of the Water Resources Agency. WIN received a certificate of appreciation for using reclaimed water from Taoyuan City Government on November 7, 2022. These measures diversify water sources to achieve stable supply, and reduce the possibility of water shortages in the fabs during the dry season.
WIN is committed to promoting source reduction, water resource reuse, and water pollution prevention to achieve the goal of "water resource sustainable cycle and reuse". We aim to stabilize supply of water resources and gradually improve overall water resource usage rates each year.

Water Consumption

Water consumption is total water withdrawal minus total water discharge. The main cause of water consumption was evaporation and spray from the cooling water tower. Other causes of water consumption include employee drinking water, environment cleaning water, water in the landscape pool and for watering, cafeteria cooking water, product production, and evaporation from water tanks (water storage system).

Statistics of water consumption (Unit: Million liters)

Water withdrawal per unit area of wafers

Water Conservation Plan and Results

WIN has continuously implemented various water conservation plans since 2010, implemented a total of 12 water conservation plans as of 2022, and gradually improved overall water recycling rate. The recycled water volume in 2021 was 263,940 tons/year (recycling rate of 25.38%). The recycled water volume in 2022 increased to 288,090 tons/year (recycling rate of 31.28%)., up 24,150 tons/year compared to 2021, and the water recycling rate in 2022 increased by 5.9% compared to 2021.

WIN actively implements source management and waste recycling, encourages every department to propose management plans for reducing process materials to reduce waste or waste liquid, to achieve our annual objective and realize our commitment to zero environmental pollution. For waste produced by the fabs, our first choice of waste vendors is using recycle and reuse, such as precious metals and chemical liquid waste. Precious metals can be recycled to raw materials, thereby improving the value of recycling renewable resources and reducing the impact of waste on the environment.

In 2022, WIN produced a total of 4,140 tons of waste, which can be divided into hazardous industrial waste of 2,677 tons and non-hazardous industrial waste of 1,463 tons. Waste disposal methods include diverted from disposal (recycle, reuse, etc.) and directed to disposal (incineration, landfilling, etc.). Of the non-hazardous industrial waste, 441 tons is general solid waste. 86 tons of the general solid waste were recycled and reused, and 352 tons were disposed of through incineration with energy recovery.

For handling waste, WIN emphasizes recycling and reuse. We commission vendors who give priority to recycle and reuse. 3,093 tons of waste was recycled in 2022. If we include the recycling method of incineration with energy recovery, the total amount of waste recycled is 3,739 tons and the recycling rate is 90%.

Waste data

WIN follows ISO 14040, ISO 14067, and ISO 14046 standards to calculate product carbon footprint and water footprint and to employ life cycle assessment tools to assess at various stages of environmental impacts throughout the entire production process, from raw material production to wafer manufacturing finished (cradle-to-gate). These results are then used to formulate strategies and measures for environmental improvement. WIN completed the product life cycle assessment of Fab A and Fab B in 2023 (about 53.4% of total production), and obtained verified by a third party in the second half of 2023.

The results of the 2022 Life Cycle Assessment of Fab A and Fab B revealed that "Energy Consumption" occupies a certain proportion of various environmental indicators. The measure focus on improving energy efficiency, using low carbon energy, and evaluating the purchase of renewable energy certificates will served as the strategies for continuous improvement.