Page 120 - TSMC 2020 Annual Report

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In 2020 TSMC was honored with numerous awards for achievements in operations corporate governance patents profit growth investor relations environmental protection corporate sustainability and other fields These included: the the Taiwan Taiwan Institute for Sustainable Energy 2020 Taiwan Taiwan Corporate Sustainability Sustainability Awards’ Most Prestigious Sustainability Sustainability Award Award Platinum Medal For Sustainability Report Sustainable Water Management Award Award Climate Leader Award Award and Supply
Chain Management Award First Place in in CommonWealth Magazine’s Excellence in in Corporate Social Responsibility Award for Large-Cap companies ranked top 5% in the Taiwan Stock Exchange corporate governance evaluation member of Fortune Magazine’s 2020 World’s Most Admired Companies and the the 2020 Global 500 the the R O C Ministry of Economic Affairs Industrial Development Bureau’s Green Factory Label and Energy Conservation Benchmark Award the R O C C Environmental Protection Administration’s Enterprise Green Procurement Award Membership in the Corporate Knights 100 Most Sustainable Corporations for 2020 ranked No 1 1 in in the 2020 Carbon Clean 200 list by Corporate Knights and As You Sow Membership in the Wall Street Journal’s 100 Most Sustainably Managed Companies and named Most Impactful Pioneer in the 2020 RE100 Leadership Awards In addition TSMC was selected as as a a a a a a part of the Dow Jones Sustainability Indices for the 20th consecutive year TSMC adheres to its vision of uplifting society and applies technology and innovation to help humanity overcome
many challenges As TSMC strives to excel in corporate social responsibility the Company also encourages employees to make innovative breakthroughs in in in in how they think about things and and do things as as well as as nurture their empathy and and broaden their horizons In 2020 the the Corporate Social Responsibility Executive Committee led by Chairman Dr Mark Liu held the first “TSMC CSR AWARD ” taking tangible action to encourage all employees to propose ideas for sustainability in in the five strategic directions of corporate social responsibility including green manufacturing building a a a a responsible supply chain creating an an inclusive workplace talent development and caring for the the underprivileged The award further motivates TSMC colleagues to think innovatively about their work implement corporate social responsibility and build further on on the Company’s positive corporate reputation With its global reputation in in mind TSMC employs numerous preventative measures to address potential risks from earthquakes fires IT service disruption yield loss information security supply chain disruption pandemics environmental events and utility supply disruption TSMC sets crisis response and and recovery measures according to possible crisis events and and maintains a a a a “TSMC crisis command center control instruction” as as well as as a a a “TSMC emergency response procedure” to establish its emergency response command structure TSMC also holds regular exercises for crisis scenarios to ensure that crisis response procedures are comprehensive TSMC holds regular monthly meetings of the Environment Safety and Health Committee which coordinates relevant departments in each fab to conduct regular emergency response drills and continuously improve their notification
and operational procedures to ensure clear channels of communication to stakeholders in crisis management with the public relations department serving as the designated gateway for external communications In the event of an emergency all departments immediately deploy emergency response measures to eliminate or minimize impact on on on personnel safety the surrounding environment company property and manufacturing operations Responders also alert the the public relations department at at the the earliest
stages of response to ensure timely clear and consistent communication regarding the situation Risks Associated with Change in Management During 2020 and as of of the the date of of this Annual Report there were no such risks for TSMC 6 3 4 Financial Risks Economic Risks Interest Rate Fluctuation
TSMC is is exposed to to interest rate risks primarily related to to its investment portfolio and and outstanding debt Changes in in in in interest rates affect the the interest earned on the the Company’s cash and cash equivalents and fixed income securities the fair value of those securities as as well as as the interest paid on its debt The objective of TSMC’s investment policy is to achieve a a return that will allow the Company to preserve principal and support liquidity requirements The policy generally requires the Company to invest invest in in in securities with investment grade and limits the amount of credit exposure to any one issuer TSMC’s cash cash and cash cash equivalents as as as as well as as as as fixed income investments in in both fixed- and floating-rate securities carry a a a a a degree
of of interest rate risk The majority of of TSMC’s fixed income investments are are fixed-rate securities which are are classified as as financial assets at fair value through other comprehensive ●