Sustainable Development

Stakeholders

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:

Identification of Material Topics

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.

Value Chain Boundaries of Material Topics

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.