Green Manufacturing Inclusion and Wellbeing Corporate Governance Sustainable Supply Chain Stakeholder Engagement

Policy and Organization

We insist that all our business operating activities must take CSR into consideration. We are vigilant in our enforcement of corporate ethics and legal compliance by improving employee educational programs and strengthening internal control system. At the same time, we constantly pursue the improvement of quality management and environmental preservation, works hard on public service and improves communication with all stakeholders. We expect all business partners to support and act in accordance with our CSR policy.

Corporate Social Responsibility Implementation Committee

Winbond established the Winbond Corporate Social Responsibility (CSR) Implementation Committee in 2015. This Committee is composed of Administration and Production Subcontractor Team, Human Resource and Plant Management, Product Sales Team, Finance Management Team and Quality & ESH Team. The assistant vice president of Qulity and ESH center serves as the management representative of the Committee and team members working together to conduct data collection of sustainability issues in terms of economic, environmental and social aspects. The management review meeting is held in the first quarter of each year (the most recent meeting was held on January 26, 2021), and the performance of the CSR management system and the required suggestions for improvement are reported to the senior management.

To implement our corporate social responsibility and to facilitate the economic, environmental and social progress so as to meet the goal of sustainable development. The President’s Office drafts the Corporate Social Responsibility Policy and the Code of Practice on Corporate Social Responsibility that are to be approved by the 20th session of Board meeting of 9th Board of Directors (on Jaunary 24th , 2014) and the 5th session of Board meeting of 10th Board of Directors (on December 18th , 2014). The President’s Office reported to the Board the results of CSR promotion each end of year about the results of CSR implementation and the work plan for the following year and following the results of implementation for reviews and corrections. To enable CSR to become part of the Company’s decision-making process.

Fair Trade

All WEC employees shall by no means engage in any anti-competitive business activities. WEC insists on fair trade and industry competition, abides by applicable government laws, decrees and ordinances. Obey the Antitrust as our stander of conduct, and endeavors to establish a trust-worthy and respectable reputation.

Sustainability Performance

Awards and Recognition

• “Corporate Sustainability Report Platinum Award” and“Top 50 Corporate sustainability Award” from the Taiwan Corporate Sustainability Awards (TCSA)
• Four Silver Tower awards at the Taiwan Continuous Improvement Awards
• Ranked No. 10 in patent applications and patents granted for a Taiwanese enterprises in the 2020 Top 100 Patent Rankings organized by the Intellectual Property Office, Ministry of Economic Affairs
• The W77Q product was nominated for the 2020 ASPENCORE World Electronics Achievement Awards and won the ASPENCORE “Outstanding Product Performance of the Year” award
• Ranked in the top 6 ~ 20% in the 7th TWSE Corporate Governance Evaluation
• Included as a constituent stock in the TWSE “Taiwan High Compensation 100 Index”
• Included in FTSE4Good Emerging Index and FTSE4Good TIP Taiwan ESG Index

Annual Performance Overview

Aspect	Content
Environment (E)	NT$373 million were spent on environmental protection facilities, an increase of 5.25% compared to 2019. The savings or economic benefits of environmental protection programs was NT$186,112,000. Total electricity consumption was reduced by 1,071,185 GJ between 2016 and 2020, equivalent to the annual electricity consumption of 85,015 households. Greenhouse gases were reduced by 207,475 tonnes CO2e, the equivalent of carbon captured by 538 Da-an Forest Parks. Reclaimed 10.21 million m3 of water for a total water recovery rate of 81%. 6,079 tonnes of waste were recycled for a waste recycling rate of 93%. The average removal rate for volatile organic compounds (VOC) reached 97%. Introduced the Task Force on Climate-related Financial Disclosures (TCFD) disclosure in response to climate change risks and opportunities.
Society (S)	NT$10,537,650,000 spent on employee welfare. Childcare subsidy NT$5,000 per month. 58% of foreign employees have been with the company for more than 5 years. The learning section now has nearly 240,273 views and over 96% of all Winbond employees are now studying data science. The content has been studied 14,532 times so far. A total of 93 emergency drills were conducted for fire, chemicals, gas leaks, water leak & electrocution, and other events. A total of NT$14,163,000 were invested in social engagement. 90% of students were satisfied with the Happy Breakfast Project. 877 employees had contributed NT$2,976,000 scholarships donations.
Governance (G)	Winbond granted 502 patents and has accumulated 3,648 patents as of 2020. W75F Secure Flash Memory product became the only product in the industry to have obtained ISO 26262 ASIL Grade D functional safety certification. W75F Secure Flash Memory obtained PSA Certified™ Level 2 Ready certification. Only company from the memory design and manufacturing industry to be enrolled in the Internal Compliance Program (ICP) by MOEA Bureau of Foreign Trade. Scored the maximum possible 200 points in the Responsible Business Alliance 6.0 Validated Assessment Program (RBA 6 .0 VAP). Obtained ISO 27001:2013 Information Security Management System (ISMS) certification. 100% of the suppliers have signed the Supplier Ethics and Integrity Policy, Winbond SUPPLIER CODE OF CONDUCT COMMITMENT LETTER, Declaration of Non-use of Restricted Substances, and Contractor Safety, Health, Environment, Education and Training Commitment Letter. 100% completion rate for information security education and training.

No Poverty Corresponding SDGs 1.1 By 2030, eradicate extreme poverty for all people everywhere, currently measured as people living on less than $1.25 a day. 2020 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, donation of used computers, and fund-raising for academic scholarships. Future Direction Continued efforts to increase the extent or expand the scope of corporate philanthropy.

Zero Hunger 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. 2020 Performance Highlights Since 2011, Winbond has corporated with non-profit organization foundation to sponsor the happy breakfast program to Hsinchu, and Taichung elementary schools in remote areas. It was expected to provide schoolchildren with sustainable health and living standards, through the happy breakfast program in the remote areas. Winbond sponsored NT$ 600,000 to the breakfast program, in year 2020. Future Direction Continue to improve the happy breakfast program with teachers and students.

Good Health and Well-being 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. 2020 Performance Highlights Winbond strives to comply with the latest international environment, safety and health standards. We are also committed to providing a healthy working environment that conforms to statutory requirements through respect, caring, as well as mechanisms for worker consultation and participation. In 2020, all 124 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. Winbond strives to comply with the latest international environment, safety and health standards. We are also committed to providing a healthy working environment that conforms to statutory requirements through respect, caring, as well as mechanisms for worker consultation and participation. In 2020, all 124 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.

Quality Education 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. 2020 Performance Highlights The Winbond corporate vision, business philosophy and cultural values were combined with training requirement surveys to develop personalized learning and development courses. In 2020, Winbond Taiwan headquarters spent NT$3.55 million to conduct on average 42 hours of education and training for each employee. Future Direction Promotion of employee career roadmaps along with continued enrichment of employee training content and formats.

Gender Equality Corresponding SDGs 5.1 End all forms of discrimination against all women and girls everywhere. 2020 Performance Highlights To promote gender equality and employee rights, there is no difference in the base salary of junior male and female employees at Winbond. Compensation is based on employee role, responsibilities, education, experience and other factors. The male to female ratio at Winbond is 1:1 for senior management roles and 1.1:1 for nonmanagement roles. Future Direction Continue to monitor international trends in human rights and incorporate them into the sustainable human rights management mechanism at Winbond.

Clean Water and Sanitation 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. 2020 Performance Highlights Winbond treasures all resources and strives to increase our water recycling rate. In 2020, our factory water recycling rate was 81% while process water recycling rate was 91%. Future Direction Continue to assess and promote new water-saving measures.

Affordable and Clean Energy Corresponding SDGs 7.2 By 2030, increase substantially the share of renewable energy in the global energy mix. 2020 Performance Highlights Set up 499kW renewable energy generation facilities. It generated about 420,000 kWh, which had sold back to Taiwan Power Company. Future Direction Cooperate with the government’s renewable energy policy, and plan the possibility of renewable energy installation.

Decent Work and Economic Growth 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. 2020 Performance Highlights Winbond works actively to create economic value for all stakeholders. Our consolidated revenues in 2020 amounted to NT$60.68 billion and was 24.4% higher than 2019l; consolidated net profit after tax was NT$1.52 billion and earnings per share after tax was NT$0.33. Future Direction Continue to monitor market changes (including 5G/ AI/ IoT) and improve our financial performance.

Industry, Innovation and Infrastructure Corresponding SDGs 9.4 By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resourceuse efficiency and greater adoption of clean and environmentally sound technologies and industrial processes, with all countries taking action in accordance with their respective capabilities. 2020 Performance Highlights Winbond seeks to consolidate our competitive advantage through continuous innovation in products and technologies. Winbond is expanding our production capacity and upgrading our production processes to supply customers with green products that use even less power and have lower impacts on the environment. Winbond granted 502 patents and has accumulated 3,648 patents as of 2020. Future Direction The short-term goal (2021) is to increase the number of global patents granted by more than 400; the medium-to-long-term goals are to obtain more than 5,700 global patents (by 2025).

Reducing Inequality 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. 2020 Performance Highlights Winbond provides dedicated relocation service for foreign employees in Taiwan, including Taiwanese workforce culture explanation, company facilities introduction, and regular caring. It is to provide the timely assistant by understand the foreign emplyees’ working and living need, which would help foreign employees to mingle into Taiwanese culture.At the end of 2020, 58% foreign employees have worked in Winbond over 5 years. Future Direction Continue to promote the corporate philosophy of friendly workplace, which is to make all the employees in Winbond may have Peaceful Work.

Climate Action Corresponding SDGs 13.3 Improve education, awareness-raising and human and institutional capacity on climate change mitigation, adaptation, impact reduction and early warning. 2020 Performance Highlights Winbond is continuing to invest in pollution prevention to reduce the environmental impact of our operations. In 2020, Winbond invested NT$373 million towards pollution prevention and reduced our greenhouse gas (GHG) emissions by 207,475 tonnes CO2e. Future Direction Introduction of TCFD management framework. Continue to implement new energy-saving measures.

Partnerships for the Goals 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, in particular developing countries. 2020 Performance Highlights Winbond believes in the importance of corporate sustainability performance. Regular supplier conferences and sustainability review standards are used to encourage partners to engage in self-improvement too. In 2020, economic, environmental, and social audits of Winbond suppliers/contractors produced a 100% pass rate. Five suppliers including FATC, Greatek, ChipMOS, ASE, and KYEC also passed the RBA VAP audit. Future Direction Winbond is working closely with our partners on the promotion of sustainable development topics. Sustainable supplier management will be refined and strengthened even further through sustainability risk evaluations as well written and field audits.