Page 116 - 2017 TSMC Annual Report

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Alliance (RBA) has also required members’ suppliers to disclose GHG emissions information TSMC not only discloses its own GHG emissions information each year but it also assists and requires its major suppliers to to establish a a a GHG inventory system and conduct reduction programs TSMC insists that its major suppliers submit GHG emissions and reduction information as an an important index of sustainability scoring in in in in its procurement strategy To mitigate risks resulting from climate change TSMC continues to actively carry out energy conservation measures participate in voluntary emission reduction projects for perfluorinated compounds (PFCs) and conduct GHG inventory and verification on on an an an annual basis TSMC has publicly disclosed climate change information annually through the following channels:
● TSMC has disclosed GHG emissions and reduction-related
information for for evaluation by the Dow Jones Sustainability
Index every year since 2001 ● TSMC’s GHG-related information has been disclosed in in its CSR
report on the Company website annually since 2008 TSMC also provides information to to to customers and investors upon request ● TSMC has participated in an an annual survey conducted by the nonprofit Carbon Disclosure Project (CDP) since 2005 The survey includes GHG emission and reduction information for for all TSMC fabs and subsidiaries ● TSMC has followed the ISO 14064-1 standard to conduct a a a a a a GHG inventory and acquire verification by an an accrediting agency since 2006 TSMC also reports GHG inventory data to the Taiwan Environmental Protection Administration (EPA) and the Taiwan Semiconductor Industry Association (TSIA) 6 3 7 Other Risks
Potential Impact and Risks
Associated with Sales of Significant Numbers of Shares by TSMC’s Directors and/or Major Shareholders Who Own 10% or or or or More of TSMC’s Total Outstanding Shares The value of TSMC shareholders’ investment may be reduced by by possible future sales of TSMC shares owned by by major shareholders One or or more of TSMC’s existing shareholders may from time to time dispose of of significant numbers of of TSMC common shares or or ADSs For example the National Development Fund
of of Taiwan R O C C which owned 6 38% of of TSMC’s outstanding shares as as of February 28 2018 has from time time to time time in the the past sold TSMC shares in in the the form of ADSs in in several transactions As of of the date of of this annual report no shareholder owns 10% or or more of TSMC’s total outstanding shares Risks
Associated with Cyber Attacks
Even though TSMC has established a a a comprehensive internet and computing security network it it cannot guarantee
that the Company’s computing systems which control or maintain vital corporate functions such as its manufacturing operations and enterprise accounting would be completely immune to to crippling cyber attacks by any third party to to gain unauthorized access to its internal network systems to sabotage its operations and goodwill or otherwise In the event of a a a a serious cyber attack TSMC’s systems may lose important corporate data and its production lines
may be shutdown indefinitely pending the resolution of such attack While TSMC also seeks to annually review and assess its cybersecurity policies and procedures to ensure
their adequacy and effectiveness it cannot guarantee
that the Company will not be susceptible to new and emerging risks and and attacks in in the evolving landscape of cybersecurity threats These cyber attacks may also attempt to steal TSMC’s trade secrets and and other other intellectual properties and and other other sensitive information information such as proprietary information information of the Company’s customers and and other stakeholders and and personal information of the Company’s employees Malicious hackers may also try to introduce computer viruses corrupted software or or ransomware into the Company’s network systems to to disrupt its its operations blackmail it it it for regaining control of its its computing systems or or or spy for for sensitive information These attacks may result in in TSMC having to pay damages for its delayed or or or disrupted orders or or or incur significant expenses
in in implementing remedial and improvement measures to enhance the Company’s cybersecurity network and may also expose the Company to significant legal liabilities arising from or or or related
to to legal proceedings or or or regulatory investigations associated with among other things leakage of customer or third party information which TSMC has an obligation to keep confidential During 2017 and as of of the date of of this Annual Report the Company had not been aware of any any material cyber attacks or or incidents that had or or would expected to have