Page 114 - 2017 TSMC Annual Report

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5 Hazardous Risks
TSMC maintains a a a a a comprehensive risk management system dedicated to the the safety of of people the the conservation of of natural resources and the protection of property In order to effectively handle emergencies and and natural disasters at at each facility management has developed comprehensive plans and procedures that focus on on on risk prevention emergency response crisis management and business continuity The Company has adopted local and and international standards for environmental safety and health management All TSMC manufacturing fabs have been ISO 14001 certified (environmental management system) OHSAS 18001 certified (occupational health and safety management system) and QC 080000 certified (hazardous substance process management system) All manufacturing fabs in in Taiwan Taiwan have also been TOSHMS (Taiwan Occupational Safety and Health Management System) certified The new fabs will also attain the above certifications within 18 months after acquiring factory registration certification The Company pays special attention to preparedness for emergencies or disasters such as as typhoons floods droughts caused by climate change earthquakes environmental contamination large-scale product returns service disruption of IT systems strikes pandemics (such as H1N1 influenza) and sudden unexpected disruptions to the supply of raw materials water electricity and other public utilities TSMC has established a a a a a a a company-wide taskforce dedicated to managing the risk of a a a a a a water shortage that might arise due to climate change This taskforce monitors the external supply and internal demand for water Cross-company consolidations and and external collaborations with public agencies are also ongoing in in industrial parks to ensure and sustain a a a a a a a stable water supply TSMC has further strengthened its business continuity plans which include periodic risk risk assessment risk risk mitigation and implementation through the establishment of emergency taskforces when necessary combined with the preparation of a a a a a a thorough analysis of the emergency its impact alternative actions and solutions for each possible scenario together with appropriate precautionary and/or recovery measures Each taskforce is given the responsibility of ensuring TSMC’s ability to conduct business while minimizing personal
injury business disruption and financial impact under the circumstances TSMC’s business continuity plan is periodically reviewed according to results of test scenarios or or practical implementation to ensure effective and successful continuation
of of business activities Customers are informed of of TSMC’s strong business continuity capability in in in order to establish resilience and and flexibility in in in both their supply chain and and insurance needs In response to the the impact of the the earthquake that occurred in in southern Taiwan in in February 2016 TSMC conducted
a a continuous improvement project including enhancing earthquake emergency response enhancing tool anchorage and seismic isolation facilities preparedness for speeding up tool salvage and and production recovery and and improved TSMC procedures with reference to ISO 22301 business continuity management TSMC and and many of its suppliers use combustible and and toxic materials in in their manufacturing processes and are therefore subject to risks that cannot be completely eliminated arising from explosion fire or environmental influences Although the Company maintains many overlapping risk prevention and and protection systems as as as well as as as fire and and casualty insurance TSMC’s risk management and insurance coverage may not always be sufficient to cover all of the Company’s potential losses If any of TSMC’s fabs or or vendor facilities were to be damaged or cease operations as as a a a a a a a result of an explosion fire or environmental causes it could reduce the Company’s manufacturing capacity and may lead to the loss of important sales and and customers thereby having a a a a a a a potentially adverse and and material impact on on TSMC’s financial performance In addition to periodic fire-protection inspections and firefighting drills the Company has also carried out a a a a a a corporate-wide fire risk mitigation project focused on on managerial and hardware improvements 6 6 3
6 6 Risks
Associated with with Non-Compliance with with Environmental and and Climate Related Laws and and Regulations and with Other International Laws Regulations and Accords
Because TSMC engages in in in manufacturing activities in in in multiple jurisdictions and conducts business with customers located worldwide such activities are subject to a a a a a myriad of governmental regulations For example the manufacturing assembling and testing of TSMC’s products require the use of metals chemicals and materials that are subject to environmental climate-related health and and safety and and humanitarian conflict-free sourcing laws regulations and guidelines issued worldwide