Sustainable Development

Vision for Sustainable Development

Sustainable Development Committee Structure

In order to implement sustainability initiatives and promote progress in corporate governance, the economy, the environment, and society, Wafer Works Corporation has established a Sustainability Development Committee in accordance with the "Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies" issued by the Taipei Exchange. This committee serves as the primary responsible unit for promoting sustainability efforts within the Company, aiming to drive sustainable development and practice across governance, economic, environmental, and social dimensions.

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 managers 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 2024, 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 Development Committee engages in discussions concerning corporate governance, the economy, the environment, and society 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 Development 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, regularly reviewing external trends and emerging issues to transparently address efforts in sustainable development, thereby creating greater value for all stakeholders.

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 2024, 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 four sustainability-related training courses in 2024, with a total of 502 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 economy, the environment, and society. According to the five principles of the AA1000 Stakeholder Engagement 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 identified in 2023 fell into six categories: 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 and direct communication channels to provide information on the Company's sustainability efforts and to understand stakeholder concerns. This continuous dialogue helps to review and improve sustainability goals and performance. The communication channels and frequencies for each stakeholder group are as follows:

Process for Identifying Material Topics

Wafer Works identifies topics of concern through 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 corporate governance, the economy, the environment, and society. This process results in the identification of 15 sustainability topics covering corporate governance, the economy, the environment, and society, 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 corporate governance, the economy, the environment, and society, as well as those relevant to the Company's sustainable operations. These topics serve as the basis for information disclosure in the report.

Wafer Works Corporation conducts materiality assessments every two years. In 2023, the Company evaluated 15 sustainability topics using stakeholder communication surveys and internal committee impact assessments. Based on the results, the top seven topics were identified as material and served as the basis for disclosures in the 2024 Sustainability Report.

Analysis Results of Material Topic Impact Ranking

Changes in Material Topics

The material topics for this year remain the same as those identified in 2023.

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.