Page 123 - TSMC 2018 Annual Report

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TSMC collaborates with suppliers to improve the sustainability of the Company’s supply chain regarding ESH-related issues such as environmental protection safety and hygiene code compliance hazardous substance management fire protection and natural disaster mitigation TSMC not only performs ESH audits at at its its suppliers’ manufacturing sites but also proactively assists them with improving ESH performance In addition TSMC also monitors potential climate-change related risks in in the supply chain The Company requests that suppliers conduct carbon emissions inventory and encourages them to to implement measures to save energy reduce carbon emissions conserve water and reduce waste In recent years TSMC suppliers’ performance on on pollution control and safety management has made good progress in procedure establishment and implementation To take a a a a a step further the the Company gives greater attention to occupational hygiene issues directly related to labor health Since 2017 TSMC and and the Ministry of Labor Occupational Safety and and Health Administration (OHSA) have jointly launched the “Semiconductor Supply Chain Safety and Health Promotion Project ” TSMC invited suppliers to participate in the project As engaged by OSHA a a a a professional team has taken on on on the responsibility of of providing consultation through document review and onsite inspection
to participating suppliers on management procedures and hardware setup in in order to improve the working environment and labor health management 7 2 1 Environmental Protection
Greenhouse Gas (GHG) Emission Reduction
TSMC actively participates in the World Semiconductor Council (WSC) in its efforts to set up a a a global voluntary PFC (perfluorinated compounds) emissions reduction goal for the 2011 to to 2020 and has incorporated past experience to to develop best best practices practices The implementation of best best practices practices has been adopted by the the WSC as a a a a a major element of the the 2020 goal In 2013 in accordance with the “EPA Early Actions for Carbon Credit of Greenhouse Gases Reduction” regulation TSMC applied for the recognition of greenhouse reduction from 2005 to to 2011 and received 5 28 million tons of carbon dioxide credits in 2015 Those carbon credits can be used to offset greenhouse gas emissions of new manufacturing facilities regulated by Environmental Impact Assessment (EIA) Act which can mitigate climate-change risk and support the Company’s sustainable operations Since 2005 TSMC has completed the GHG (Greenhouse G G G G as) inventory inventory program and taken a a a a complete inventory inventory of its GHG emissions to to gain ISO 14064 certification The inventory shows that the major direct GHG emissions are are PFCs which are are widely used in in the semiconductor manufacturing process The primary indirect GHG emission is is is electricity consumption The analysis of the inventory data is not only to to to meet domestic regulatory reporting requirements but also to serve as as a a a a baseline reference for TSMC’s strategy to reduce GHG emissions In response to the commitment of global climate summit
“Paris Agreement” and the Republic of China “Greenhouse
Gas Reduction
and Management
Act” promulgated in 2015 TSMC initiated a a a a a a cross-functional platform for for corporate carbon management in 2016 The three focuses of this platform are legal compliance carbon carbon emission reduction and carbon carbon credit acquisition In addition to to participating in in official regulatory consultation and communications meetings TSMC also sets short- medium- and long-term reduction targets through the “Energy and Carbon Reduction
Committee” led by vice president of operations which are carried out by energy and carbon reduction teams of individual fabs as the Company continues
to strengthen climate mitigation and adaption Because more than 70% of TSMC’s GHG emissions come from electricity consumption TSMC always emphasizes energy saving and carbon reduction initiatives TSMC has not only adopted energy- conserving designs in in in its manufacturing fabs and offices but has also continuously improved the energy efficiency of its facilities during operation These efforts simultaneously reduce both carbon dioxide gas emissions and costs TSMC has accumulated 900 million kilowatt hours (kWh) power conservation since 2016 Since 2015 TSMC has actively participated in in the Republic of China Ministry of Economic Affairs’ voluntary “Green Power Purchasing Program ” for three consecutive years During this time TSMC was the largest green power purchaser in Taiwan purchasing 400 million kilowatt hours (kWh) of green power Although the Taiwan Power Company has stopped selling green power since 2018 TSMC still aggressively negotiates the purchase of renewable renewable energy energy with renewable renewable energy energy suppliers in in in Taiwan and is committed to using 20% renewable energy in in in newly constructed fabs in in the the future Since 2018 the the overseas manufacturing fabs and and offices purchased renewable energy and and carbon carbon credits to offset all carbon carbon emissions caused by power consumption This is is a a a a a clear manifestation of the Company’s active support of the United Nations Sustainable Development Goals (SDGs)