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 limiting 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. We will also regularly review whether actual emissions align with the net zero pathway, pay attention to carbon reduction technologies and changes in issues, and continuously adjust the net zero strategy.
In 2023, WIN introduced the ISO 50001 energy management system in Fab A and obtained third-party certification. It will gradually introduce ISO 50001 to the other plants in the future to implement systematic management, continue to improve energy efficiency, and achieve the goal of reducing electricity consumption.

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 2023, the TCFD operations team identified 31 climate change risks, of which 25 were related to the Company and 9 were included as risks of concern, including extreme weather, shift in customer preferences, and business reputation, and 22 climate change opportunities, of which 13 were related to the Company and 9 were included as opportunities of concern, in which key items include the development of low-carbon products and energy and resource efficiency improvement.

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. 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 4 consecutive years in 2023, and was also rated at the "Leadership Level" by the CDP Water Security, and at the "Management Level” by the CDP Climate Change. In 2023, WIN also participated in the SGS "ESG Awards" and was recognized in the "Carbon Management" category.

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 Climate Change Administration of Ministry of Environment. We regularly inventory the greenhouse gas emissions of our fabs every year and pass third-party verifications. SGS Taiwan Ltd. conducted the inventory in 2023 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 2023, other indirect GHG emissions was 54,460 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. We established the Energy Conservation and Carbon Reduction Task Force in 2021, with the Vice President acting as the chairperson. The task force convenes quarterly meetings to review the implementation status and future plans. In 2023, WIN implemented the ISO 50001 Energy Management System at Fab A and obtained third-party certification by the end of the year. Subsequently, the energy management system will be gradually introduced to the other plants. Quarterly energy management and environmental health and safety committee meetings are held to actively implement greenhouse gas reduction plans and achieve the Company's net-zero emissions goal.

According to the results of the 2023 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 GHG 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. In 2023, WIN adopted low-carbon energy and replaced the coal-fired steam and electricity used in Fab A and Fab B with Taipower to reduce indirect energy greenhouse gas emissions.

In addition, WIN will replace the local scrubbers on the production lines in 2023 through MOENV's GHG offset project to greatly reduce the PFC emissions in the production process. The project was approved by the MOENV in 2021 and completed registration. In the future, we will apply for GHG offset credits from the MOENV according to the project schedule.

2023 Emissions Inventory Results

A total of 20 energy conservation plans were completed in 2023, total cost of installation is $9,153,810, which reduced electricity consumption by 1,043,709 kWh and reduced carbon emissions by 738 tons CO₂e.

Renewable Energy Planning

• WIN invested NT$14.7 million in a solar PV system with installed capacity of 250 kW in 2022, and invested NT$19.8 million in a solar PV system with installed capacity of 314 kW in 2023, and the zero carbon renewable energy is supplied to Fab C.
• The system is expected to begin generating 670,000 kWh of renewable energy in 2024 and 2025 and will reduce carbon emissions by 332 metric tons.

Although the Taoyuan area has been deemed as a low to moderate 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 production water during droughts. WIN continues to increase the amount of recycled water within the plants and actively participates in the Water Resources Agency's "Wenqing Water Park Water Recycling Center Water Reclamation Project". It is anticipated that the construction of the internal "reclaimed water system" will be completed by the end of 2024, in alignment with the supply schedule of the Wenqing Park Water Recycling Center. This will diversify the water sources for stable water supply, reduce the use of raw water from the Shimen Reservoir, and decrease the likelihood of water shortages within the plants during droughts.
In order to achieve the goal of "sustainable recycling and reuse of water resources", WIN is committed to promoting source reduction, water recycling and reuse, and water pollution prevention to stabilize supply of water resources and gradually improve overall water resource usage efficiency each year.

Water Withdrawal

WIN accesses water from tap water, irrigation water (Note), and groundwater. The tap water and irrigation water are sourced from the catchment area of Shihmen Reservoir, which is a freshwater source, and supplied by the water plant (tap water) and Nanya Technology Water Purification Plant. Groundwater is used as emergency backup in the event of drought or water shortage caused by irregular operations of water plants. Irrigation canals occasionally went through regular maintenance in September to December 2023 and resulted in unstable water supply. Hence, groundwater consumption of WIN's Fab A and Fab B was relatively high in 2023.

Note: Irrigation water is defined as water sourced from the Shihmen Dam, which is excess water from farmland irrigation by the Department of Irrigation and Engineering, and processed by the water purification plant of Nanya Technology before it is supplied to WIN for use.

Comparison of Water Withdrawal (Unit: Million liters)

Water Withdrawal per Unit Area of Wafers

Discharged Water

Fab A and Fab B effluents are collected and processed by Hwaya Technology Park. Fab C effluents are collected and processed by Guishan Industrial Park. To ensure the effectiveness and economic rationale of wastewater treatment, WIN categorizes waste water based on their characteristics and collect individual types of waste water based on such characteristics to reach the effluent standards established by Hwaya Technology Park and Guishan Industrial Park before discharge. We aim to meet the effluent standards established by the Ministry of Environment and avoid causing pollution to downstream water sources.

Total Wastewater Discharge Volume (Unit: Million liters)

Wastewater Discharge per Wafer

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 Conservation Plan and Results

Since 2010, WIN has been consistently implementing various water-saving projects and increasing the overall water recycling rate year by year. The estimated increase in recycled water volume due to project implementation in 2022 was 288,090 cubic meters per year (an increase in recycling rate of 31.28%). In 2023, the volume of recycled water increased to 308,055 cubic meters per year, with a recycling rate of 33.54%. This represents an increase of 19,965 cubic meters per year in recycled water volume compared to 2022 and a 2.26% increase in the recycling rate from 2022, demonstrating a continued upward trend in the project's recycling rate despite increased water usage due to the LOCAL SCRUBBER.

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 directed to disposal such as landfilling on the environment.

In 2023, WIN produced a total of 3,758 tons of waste, which can be divided into hazardous waste of 2,463 tons and non-hazardous waste of 1,295 tons. Waste disposal methods include diverted from disposal (recycle, reuse, etc.) and directed to disposal (incineration, landfilling, etc.). Of the non-hazardous waste, 302 tons is solid waste. 99 tons of the solid waste were recycled and reused, and 203 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. 2,899 tons of waste was recycled in 2023. If we include the recycling method of incineration with energy recovery, the total amount of waste recycled is 3,294 tons and the recycling rate is 88%.

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 various stages of environmental impacts throughout the entire production process, from raw material production to wafer manufacturing (cradle-to-gate). These results are then used to develop strategies and measures for environmental management improvement. In 2023, WIN's Fab A and Fab B obtained third-party verification for LCA assessment, and expanded LCA assessment implementation to the Fab C in 2024, with plans to obtain third-party verification for the Fab C's LCA in the second half of the year. This will enable to obtain life cycle assessment information for the WIN’s 6-inch compound semiconductor equivalent wafers. (100% of total production)

Based on the life cycle assessment results, it was found that "electricity usage" constituted a significant proportion of several environmental indicators, so WIN Fab A and Fab B converted coal-fired power generation to other energy sources with lower carbon emissions (Taipower) in 2023. In addition, gradually introduce ISO 50001 energy management in each factory to improve energy efficiency. We will continue to promote energy-saving measures and evaluate the purchase of renewable energy certificates as strategies for continuous improvement.