Highlights of the Report by ESG Committee

 2021 ESG Implementation Outcomes 

 2022 ESG Promotion Outcomes

Environment (E)

• NT$378 million was spent to implement measures related to environmental protection, up 1.5% from 2020

• Economic benefits from environmental investments amounted to NT$252,984,000

• From 2017 to 2021, total electricity of 1,167,682 GJ was saved, which is equivalent to the annual electricity consumption of 92,002 households

• Reduced greenhouse gas emissions by 229,245 metric tons of CO2e, which is equivalent to the annual fixed carbon emission of 594 Daan Forest Parks

• Completed the 12-inch IC wafer carbon footprint inventory and obtained the ISO 14067:2018 certification in 2021

• Completed the 12-inch IC wafer water footprint inventory and obtained the ISO 14046: 2014 certification in 2021

• 10.59 million cubic meters of water recycled, and the water recycling rate of all plants

• 7,212 metric tons of waste recycled, with a recovery rate of 93%

• The average removal rate of volatile organic compounds (VOCs) reached 98%

• Introduced the Task Force on Climate-related Financial Disclosures (TCFD) framework in response to climate-related risks and opportunities

• Joined SEMI ESG Initiative to support sustainable development for the semiconductor manufacturing industry

Society (S)

• Employee benefits totaled NT$17,325,311,000

• Childcare subsidy was raised from NT$5,000 per month to NT$6,000 per month

• 60% of our foreign employees have worked with us for over 5 years

• Our learning section now has nearly 340,468 views, while the data science section has been viewed nearly 6,154 times. There are 782 online courses in the learning section for employees’ self-study.

• Implemented a total of 85 emergency response drills for fire, chemicals and gas leakage, massive water
  leakage, and other emergencies

• Invested a total of NT$5,387,000 in community involvement

Governance (G)

• Winbond granted 510 patents and has accumulated 4,158 patents as of 2021

• We are the only memory manufacturer to be selected into the list of Internal Compliance Program (ICP) verified by the Bureau of Foreign Trade, MOEA

• W75F Secure Flash Memory passed automotive functional safety certification of ISO 26262 ASIL Grade D, the only one in the industry

• W75F Secure Flash Memory obtained certification of PSA Certified™ Level 2 Ready

• Obtained the ISO 27001:2013 Information Security Management System (ISMS) certificate

• Scored 96 (Grade A) on the cloud information security testing tool Security Score Card (SSC)

• 100% of our suppliers have signed the Supplier Ethics and Integrity Policy; Winbond Supplier Code of Conduct Commitment Letter; Declaration of No-use of Restricted Substances; and Contractor Safety, Health, Environment, Education and Training Commitment Letter

• The completion rate of annual information security awareness training was100%

Corresponding SDGs

1.1 By 2030, eradicate extreme poverty for all people
everywhere

2021 Performance Highlights

“Caring for the Disadvantaged” is one of the permanent CSR commitments made by Winbond. We provide volunteers and funding to help disadvantaged groups through tough times. Projects supported by Winbond include volunteering at children's homes, donating used computers, and fund-raising for academic scholarships.

Future Direction

Continue to increase the extent or expand the scope of corporate philanthropy.

Corresponding SDGs

2.1 By 2030, end hunger and ensure access by all people,
in particular the poor and people in vulnerable situations, including infants, to safe, nutritious and
sufficient food all year-round

2021 Performance Highlights

Since 2011, Winbond has cooperated with non-profit organizations and foundations to
support the happy breakfast program at elementary schools in remote areas of Hsinchu and
Taichung, in the hope of providing students with sustainable health and living standards
through support of breakfasts and care. In 2021, Winbond contributed NT$550,000 to the
breakfast program.

Future Direction

Continue to improve the happy breakfast program
based on teachers' and students’ opinion surveys.

Corresponding SDGs

3.9 By 2030, substantially reduce the number of deaths
and illnesses from hazardous chemicals and air, water and soil pollution and contamination

2021 Performance Highlights

The Company endeavors to meet the advanced international safety, health and environmental standards and is committed to providing employees with a complying and healthy working environment through respect, caring and counseling, and participation mechanisms. In 2021, all 104 workers in special operations underwent health exams. All were classified as category 2 for the purpose of health management and promotion based on the results.

Future Direction

Continued strengthening of health and safety management measures.

Corresponding SDGs

4.3 By 2030, ensure equal access for all women and men to affordable and quality technical, vocational and tertiary education, including university

2021 Performance Highlights

Based on the Company's visions, business philosophy and cultural values, complemented by surveys on training needs, Winbond has planned personalized learning and development courses. In 2021, employees at Winbond’s head office in Taiwan received training for an average of 47 hours per person, and the total expenses in training amounted to NT$10.3 million

Future Direction

Promotion of employee career roadmaps, along with continued enrichment of employee training content and formats.

Corresponding SDGs

5.1 End all forms of discrimination against all women and girls everywhere

2021 Performance Highlights

Based on the Company's visions, business philosophy and cultural values, complemented by surveys on training needs, Winbond has planned personalized learning and development courses. In 2021, employees at Winbond’s head office in Taiwan received training for an average of 47 hours per person, and the total expenses in training amounted to NT$10.3 million

Future Direction

Promotion of employee career roadmaps, along with continued enrichment of employee training content and formats.

Corresponding SDGs

6.4 By 2030, substantially increase water-use efficiency across all sectors and ensure sustainable withdrawals and supply of freshwater to address water scarcity and substantially reduce the number of people suffering from water scarcity

2021 Performance Highlights

Winbond cherishes all resources and is committed to improving the reuse rate of recycled water. In 2021, the plant-wide water recycling rate and the manufacturing process water recycling rate were 83% and 91%, respectively.

Future Direction

Continue to assess and promote new water-saving measures.

Corresponding SDGs

7.2 By 2030, increase substantially the share of renewable energy in the global energy mix

2021 Performance Highlights

A 499kW rooftop renewable energy generation equipment has been installed, and the renewable energy it generated was sold to Taiwan Power Company. In 2021, approximately 720,000 kWh of power was generated.

Future Direction

In cooperation with the government’s renewable energy policy, we are planning and evaluating the viability of renewable energy installation.

Corresponding SDGs

8.2 Achieve higher levels of economic productivity through diversification, technological upgrading and innovation, including through a focus on high-value added and labour-intensive sectors

2021 Performance Highlights

Winbond strives to create economic values for various stakeholders. In 2021, our consolidated revenues amounted to NT$99.57 billion, an increase of 64.08% compared to 2020; our consolidated net profit after tax was NT$15 billion, and after-tax EPS was NT$3.42.

Future Direction

Continue to monitor market changes and improve our financial performance.

Corresponding SDGs

9.4 By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally-sound technologies and industrial processes

2021 Performance Highlights

Winbond seeks to consolidate our competitive advantage through continuous innovation in products and technologies. We are expanding our production capacity and upgrading our production processes to supply customers with green products that consume even less power and have lower impacts on the environment. Winbond granted 510 patents and has accumulated 4,158 patents as of 2021.

Future Direction

We aim to obtain more than 5,700 global patents (by 2025).

Corresponding SDGs

10.2 By 2030, empower and promote the social, economic and political inclusion of all irrespective of age, sex, disability, race, ethnicity, origin, religion or economic or other status

2021 Performance Highlights

Winbond provides dedicated relocation service for foreign employees in Taiwan, including Taiwanese workforce culture explanation, company facilities introduction, and regular caring. By providing timely assistance through understanding foreign employees’ working and living needs, this service helps foreign employees to integrate into Taiwan’s living environment. As of the end of 2021, 60% of foreign employees have been with Winbond for more than 5 years.

Future Direction

Continue to promote our corporate philosophy of friendly workplace to allow all Winbond employees to concentrate on work.

Corresponding SDGs

13.3 Improve education, awareness-raising and human and institutional capacity on climate change mitigation, adaptation, impact reduction and early warning

2021 Performance Highlights

In order to reduce impact on the environment during operations, Winbond continues to devote resources to pollution prevention and control. In 2021, Winbond invested a total of NT$378 million in pollution prevention and reduced GHG emissions by 229,245 ton-CO2e.

Future Direction

Introduction of TCFD management framework. Continue to implement new energy-saving measures.

Corresponding SDGs

17.16 Enhance the global partnership for sustainable development, complemented by multi-stakeholder partnerships that mobilize and share knowledge, expertise, technology and financial resources, to support the achievement of the sustainable development goals in all countries

2021 Performance Highlights

Winbond attaches importance to corporate sustainability. We regularly organize general suppliers’ meetings and adopt sustainable review standards to allow Winbond and partners to improve together. In 2021, economic, environmental, and social audits of Winbond suppliers/contractors produced a 100% pass rate.

Future Direction

We actively cooperate with partners who promote sustainable development issues and will improve and enhance sustainable supplier management, which includes the assessment and document-based and onsite audits of sustainability risks, in the future.