Page 114 - TSMC 2018 Annual Report

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• Other Climate Climate Risks
Climate change is a a a a a concern to the global supply chain necessitating energy conservation carbon reduction and disaster prevention For example the Responsible Business 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 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 an important index of sustainability scoring in in in its procurement strategy To mitigate risks resulting from climate change TSMC continues to actively carry out energy conservation measures participate in in voluntary emission reduction projects for perfluorinated compounds (PFCs) and and conduct GHG inventory and and verification on an an an annual basis TSMC has publicly disclosed climate change information annually through the following channels:
• GHG emissions and reduction-related information submitted for evaluation to the Dow Jones Sustainability Index every year since 2001 • GHG-related information disclosed in in in in its CSR report on on the Company website annually since 2008 TSMC also provides information to to to customers and investors upon request • Participation in in in in an an an annual survey 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 • Adherence to to to the ISO 14064-1 standard to to to conduct a a a a a a 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 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 ADSs For example the National Development Fund Executive Yuan R O C C which owned 6 38% of TSMC’s outstanding shares as as of February 28 2019 had from time time to time time in the past sold TSMC shares in in 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
of Trade Policies
As TSMC’s revenue is primarily derived from sales to major economies in the world (please refer to “2 2
2
4 TSMC Position Differentiation and Strategy” on on page 13
of this annual report) any changes in in the the trade policies (such as as the the increase of tariffs on on certain products the implementation of import and export controls and the the adoption of of other trade barriers) of of such major economies can affect the sales of TSMC or its customers and thereby affect TSMC’s operating results Accordingly TSMC TSMC continues to to monitor the recent shifts in in trade policies and measures among the relevant major economies and will take corresponding responsive actions in in accordance with subsequent developments Other Material Risks
During 2018 and in in 2019 as of of the date of of this annual report TSMC’s management is is not aware of any other risk event that could impart a a a a a a a a a potentially material impact on the financial status of the Company