Page 133 - TSMC 2020 Annual Report

TSMC collaborates with suppliers to improve the the sustainability of the the Company’s supply chain regarding ESH-related issues such as environmental protection protection compliance of safety and and hygiene codes hazardous substance management fire protection protection and and mitigation of natural disaster The Company not only performs ESH audits at at at its its suppliers’ manufacturing sites but also proactively assists them to improve ESH performance In addition TSMC monitors potential climate-change related risks in in the supply chain The Company requests that suppliers conduct carbon carbon emissions emissions inventory and encourages them to to to implement measures to to to save energy reduce carbon carbon emissions emissions conserve water and reduce waste In recent years TSMC suppliers have made excellent progress in procedure establishment and implementation for pollution control and safety management To take it a a a a a a a a a a a a step further the the Company has given greater attention to occupational hygiene issues directly related to labor health In 2017 TSMC and and the Ministry of Labor Occupational Safety and and Health Administration (OHSA) jointly launched the the “Semiconductor Supply Chain Safety and Health Promotion Project” TSMC also invited suppliers to to participate in in in the the project As engaged by OSHA a a a a a a a professional team has taken on on on on on the responsibility of of providing consultation through document review and and onsite inspection to to participating suppliers on on on management procedures and and hardware setup in in in order to to improve the working environment and labor health management 7 2 1 Environmental Protection
Climate Change and Energy Management
Task Force on Climate-related Financial Disclosures (TCFD)
Given that climate change could potentially affect operations and pose financial risk in in 2018 TSMC adopted recommendations of the the Task Force on Climate-related Financial Financial Disclosures (TCFD)
released by the the Financial Financial Stability Board (FSB) to identify risk and opportunities and and further established metrics and and target management based on on the the identification results Management
Structure of TSMC Climate-related Risk and Opportunity
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Category
Management
Strategy and Actions
Governance
Strategy Risk Management
Metrics and Targets
Board of Directors periodically reviews climate change related risk and opportunity
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ESG ESG Steering Committee Committee led by Chairman is the the Company’s top organization that deals with climate change management The chairperson of ESG ESG Committee Committee serves as the the Executive Secretary ESG Steering Committee reviews TSMC’s climate change strategies and and goals every six months and and reports to to the Board of Directors (The Corporate Social Responsibility Executive Committee Committee has has been been renamed as as as as ESG Steering Committee Committee in in in in 2021 The frequency of regular meetings has has been been increased from semi-annual to quarterly ) The Energy and Carbon Reduction Committee led by the the senior vice presidents of of Fab operations is the the organization that deals with action implementation of of climate change risk and and opportunity
in TSMC This committee develops management plans plans reviews the execution status and and discusses future plans plans on on a a a a a a a a a a quarterly basis ●
Identify short medium and and long term climate risks and and opportunities through cross-departmental discussion
Assess the the potential operational and and financial impact of significant climate risks and and opportunities to the the company
Conduct situational analysis evaluate SBT and net-zero emission Use of the TCFD framework to establish TSMC’s climate risk identification process Follow the risk identification and ranking on on on climate change to develop relevant responding projects
Integrate climate risk identification and assessment into the Enterprise Risk Management
(ERM) process Set management metrics related to climate change Examine the the impact on on on company
operations and and and and assess the the risks and and and and mitigation strategies for scope 1 1 1 2 and and and and 3 through annual inventory of of ISO 14064-1 and and and and disclosure of of greenhouse gas emissions Develop climate change management objectives and and review achievement progress and and actual performance 131