Sustainable Development

Vision for Sustainable Development

Sustainable Development Committee Structure

To implement sustainable development initiatives and promote advancements in corporate governance, the environment, and society (including people and human rights), Wafer Works has established a Sustainable Development Committee.This committee, which was formed in accordance with the "Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies" set by the Taipei Exchange, serves as the primary unit responsible for driving sustainable development within the Company. Its main objective is to achieve sustainable development and practices that enhance corporate governance, environmental protection, and social responsibility.

The Sustainable Development Committee is chaired by the Chairman of the Board, with the President serving as the Managing Representative. Vice Presidents, Assistant Vice Presidents, and plant manag ers and above serve as committee members. The Corporate Services Department acts as the Executive Secretary, responsible for coordinating related tasks. The committee convenes regularly, with two meetings held in 2023, to collectively review the core operational capabilities of the Company and establish short, medium, and long-term sustainable development goals.

To actualize corporate governance, foster sustainable environmental development, and uphold social justice, Wafer Works’ Sustainable Dev elopment Committee engages in discussions concerning corporate governance, environmental, and social (including people and human rights) issues relevant to operational activities, internal and external advocacy messages. It sets sustainable development management plan goals in accordance with legal requirements, stakeholder expectations, etc., and initiates responsibility assignment and action plans. Through annual committee meetings, it examines the performance of sustainable development management plan goals in areas such as corporate governance, the environment, and society (including people and human rights).The managing representative regularly reports sustainable development strategies, management plan goals, and executive performance to the Board of Directors and discloses them in the sustainability report.

The Managing Representative of Wafer Works’ Sustainable Dev elopment Committee is held by the President, responsible for driving sustainable policies and supervising overall sustainable development affairs. Annually, they report sustainable planning and performance to the Board of Directors, reg ularly reviewing external trends and emerging issues to transparently address efforts in sustainable development, thereby creating greater value for all stakeholders.

Wafer Works has established the "Corporate Gov ernance Best Practice Principles" and the "Procedures for H andling Material Inside Information and Preventing Insider Trading" to fulfill the functions of the corporate g overnance unit, balance stakeholder interests, and facilitate communication of material information. Departments interact with stakeholders through routine responsibilities. In cases where potential sig nificant negative impacts between stakeholders and the Company arise, relevant departments conduct due diligence investigations.Depending on the specific results and their potential significant harm t o the Company's overall operations, these investigations may be reported to the Board of D irectors, which then decides on actions to be taken by the resp onsible departments. If the matter falls within the realm of hand ling material information, relevant regulations are followed for decision-making and fair disclosure. In 2023, Wafer Works did not encounter an y significant negative events with stakeholders, thus no records were reported to the Bo ard of Directors. The 2023 report to the Board of Directors regarding ESG-related information is as follows:

Sustainability Policy

Sustainability Education and Training

Wafer Works places a premium on promoting sustainable development and enhancing collective knowledge in this area. Board members attend annual courses on relevant topics such as sustainable governance, climate change, and net-zero carbon emissions. For details on board continuing education in 2023, please refer to the Wafer Works Annual Reports.The Company conducts regular education and training sessions to ensure employees fully understand Wafer Works’sustainability policy, the structure of the Sustainable Development Committee, and various charity activities. There is also a dedicated ESG section on the website, which includes a section for stakeholders, to disclose the implementation of Wafer Works' sustainable development. In addition to integrating sustainability education into new employee training, Wafer Works held three sustainability-related training courses in 2023, with a total of 1,007 participants.

Stakeholder Identification

Identifying and communicating with stakeholders is fundamental to fulfilling the Company's sustainable development. Through the Sustainable Development Committee, Wafer Works evaluates global sustainability trends and operational development goals, analyzing key topics in corporate governance, the environment, and society (including people and human rights). According to the five principles of the AA1000 Stakeholder Eng agement Standard (AA1000 SES)—Dependency, Responsibility, Tension, Influence, and Diverse Perspectives, Wafer Works identifies its key stakeholders and rates and ranks them.
According to the analysis of these principles, the main stakeholders ide ntified in 2023 fell into six categ ories: customers, employees, shareholders/investors, suppliers/contractors, government authorities, and financial institutions.

Stakeholder Communication

Wafer Works values the rights and opinions of its stakeholders and has established open a nd direct communication channels to provide information on the Company's sustainability efforts and to understand stakeholder concern s. This continuous dialogue helps to review and improve sustainability goals and performance. The communication channels and frequencie s for each stakeholder group are as follows:

Process for Identifying Material Topics

Wafer Works identifies topics of concern throug h communication with key stakeholders across various departments in daily operational activities. The Sustainable Development Committee refers to the GRI Sustainability Reporting Standards and SASB industry-specific sustainability metrics. During committee meetings, they assess the actual and potential positive and negative impacts of these topics on the economy, environment, and people (including human rights).This process results in the identification of 15 sustainability topics covering the economy, environment, people and human rights, ensuring that the sustainability information disclosed by Wafer Works meets stakeholder expectations.

Material Topic Identification

In the process of preparing the sustainability report, Wafer Works introduces a materiality analysis.This systematic approach identifies the sustainability topics that have significant impacts on the economy, environment, and people and human rights, as well as those relevant to the Company's sustainable operations. These topics serve as the basis for information disclosure in the report. Based on 15 sustainability issues, stakeholder communication surveys, and internal committee impact assessments, the top seven ranked issues were identified as material topics for the 2023 sustainability report.

Material Topics Impact Ranking Analysis

Changes in Material Topics

Compared to 2022, the material topics have changed due to adjustments and consolidations of sustainability issues this year.

This report categorizes the identified material topics into four dimensions: "Corporate Sustainability," "Partner Sustainability,"
"Environmental Sustainability," and "Social Sustainability." Using the value chain as a boundary analysis element, we regularly discuss material topics in each dimension, review the implementation of management plan targets, and outline future sustainability directions. We also compile related performance data, stakeholder engagement results, and recommendations from sustainability discussions.The Sustainable Development Committee manages these aspects continuously and discloses relevant information in the Wafer Works Sustainability Report.