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Climate Governance

Climate change highlighted the fragility of the society and the importance of business resilience.Winbond has established a business continuity management (BCM) system to identify potential risks in business operations, develop systematic response mechanisms, and implement regular trainings and drills. The system will facilitate quicker response and faster recovery from the impact.

As dealing with climate change is a responsibility we need to participate, Winbond adopted the TCFD (Task Force on Climate-related Financial Disclosures) framework in 2021 to evaluate the risks and opportunities associated with climate change. The result will form the basis of our climate action and help to improve our operation resilience.

Climate Change Risks

Climate Change Risks Risk Description Scope of Impact Winbond Response Strategy

Increased cost of
energy prices

GHG reduction requirements may impact on the cost of energy use due to higher energy prices and need to improve equipment performance. Market price
  • Promotion of workplace energy conservation and carbon reduction.
  • Continue to undergo ISO 14064-1 GHG inventory verification.
  • Set annual target for electricity savings.

More robust
environmental regulation

Domestic environmental legislation is still being amended and is becoming stricter. Operating cost
  • The responsible units are continuing to monitor and track related regulatory changes so that they can prepare in advance, in order to understand the risks involved and avoid non-compliance.
Amendments to the Renewable Energy Development Act increases the cost of energy use for businesses.
  • Continue to the evaluate the green electricity provisions for large electricity users and installation proportions for renewable energy equipment.
The Greenhouse Gas Reduction and Management Act will impose caps on GHG emissions and a carbon tax. These may increase operating costs by raising the cost of GHG emissions and electricity.
  • The EPA is now building a carbon trading platform that offers carbon credits for businesses that start reducing their carbon emissions early.
  • Set annual targets for GHGH emissions.

Business interrupted by
extreme weather events

Extreme rainfall and drought:Reduction/disruption of production. Business interruption
  • Promote water-recycling technology and watersaving measures as well as devise response plan. Increase competitiveness by improving ability to adapt to climate changes.
Production activities affected by climate disasters such as:flooding, drought, fire, heat, and heavy snow. These events may impact on the delivery time of raw materials.
  • Continue to take part in academic and industry climate change seminars to share and discuss the effects of climate change. Winbond will also continue to engage in energy saving initiatives to reduce the business impact and improve our competitiveness.
  • Increase internal inventory and track supplier delivery schedules to ensure the reliability of the supply chain.

Climate Change Opportunities

Climate Change Opportunities Opportunity Description Scope of Impact Winbond Response Strategy

Development and/or choose of
low carbon emission or
pollution-reducing
ecofriendly products

Choose low carbon emission or pollutionreducing eco-friendly products. Market opportunities
  • Develop low carbon emission / pollution-reducing products with suppliers.

Use of recycling and resource saving purchases

  • Set up mechanism with subcontractors to reuse cassettes (FOSB).
  • The outer cartons used for transporting wafers are recovered for reuse in future supplier shipments.
  • FOSB/Mask Package Box/Parts are washed and reused to save resources.
Operating cost
  • Collaborate with suppliers on recycling projects.
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