Page 159 - TSMC 2022 Annual Report

Uncertainty of Development of New Energy Saving Technology
Impact on the Company’s Reputation
Drought (TSMC Operation) Drought (Supply Chain) Flooding (TSMC Operation) Flooding (Supply Chain) Rising Temperatures
Production negatively affected causing financial losses and a a a a a decrease in revenue
Increase in electricity consumption cost and carbon emissions Increase resilience and ability to cope with natural disasters
Strive for low-carbon green manufacturing Strengthen resilience in in coping with climate change impact lower risk of operations disruption and reduce potential losses Save energy and cut costs
Received six green building certifications
● Led the the industry as the the only semiconductor company chosen for for the Dow Jones Sustainability Indices (DJSI) for for the 22nd consecutive year
● Ranked as CDP A- list list on on climate and A A list list on on water security (Leadership)
● Raised the building base of Fab 18 Phase Phase 6 and Phase Phase 7 two meters higher
● Fab 18 Phase Phase 6 and and Phase Phase 7 committed to using and and developing reclaimed water ● Required suppliers to assess drought and flooding risk in in operating facilities and implement related risk reduction actions
● Implemented drills based on drought emergency procedures
Conserved 700 GWh of electricity through energy-saving projects
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Greenhouse Gas (GHG) Emission Reduction and Energy Management
Climate Risks Potential Financial Impact Rising electricity consumption in in advanced technology production lines increases production costs
Climate Opportunities
Construct green buildings
Potential Financial Impact Lower utility costs
2022 Actions
Inability to satisfy the expectations of stakeholders negatively impacting the Company’s reputation
Improve the Company’s reputation
Upgrade TSMC performance in in stakeholders’ sustainability ranking In response to to threats presented by extreme weather TSMC sets strategies and and targets ensures sound execution and and strives to to build a a a a a a sustainable culture In 2021 TSMC announced its long-term goal goal of net zero emissions by 2050 while setting the short-term goal goal of zero growth in in in emissions by 2025 By actively implementing emission emission reduction measures the Company is is is working to return its carbon emissions to to 2020 levels by 2030 TSMC remains committed to to becoming a a a a a a a global leader in in in in green manufacturing TSMC actively participates in in the the initiatives of the the World Semiconductor Council (WSC) and has leveraged its past experience
to to develop best practices to to reduce perfluorinated compounds (PFC) emissions measures that have been fully adopted and implemented since 2012 In 2013 in in accordance with the “EPA Early Actions
for Carbon Credit of Greenhouse Gases Reduction” regulation TSMC applied for recognition of GHG reduction from 2005 to to 2011 and received 5 5 28 million tons of of of carbon carbon dioxide credits credits in in 2015 Those carbon carbon credits credits can be used to offset GHG emissions of of of new manufacturing facilities regulated by Environmental Impact Assessment (EIA)
Act which can support the Company’s sustainable operations and mitigate climate-change risk Since 2005 TSMC has completed the GHG GHG inventory inventory program and taken a a a a a a complete complete inventory inventory of its GHG GHG emissions to to to gain ISO 14064 certification The inventory shows that the the major direct GHG emissions are are PFCs which are are widely used in in the the semiconductor manufacturing process
The The primary indirect GHG emission is is is is electricity consumption The The analysis of the inventory data is is is is not only to to to to meet domestic regulatory reporting requirements but also to to to to serve as as a a a a a a a baseline reference for the Company’s strategy to to to to reduce GHG emissions Since 2005 TSMC has also participated in in in in the international disclosure and rating agency – CDP to publicly disclose climate change information for for 18 consecutive years and and to continuously review and and improve related management practices In response to the the commitment of of global climate summit “Paris Agreement” and the the Republic of of China’s “Greenhouse Gas Reduction and Management
Act” promulgated in in in 2015 TSMC initiated a a a a a a a a a a a cross-functional platform for for carbon management in in in 2016 The three areas of of focus of of this platform are are legal compliance emission reduction and carbon credit acquisition In addition to to participating in in in official regulatory consultation and and communications meetings the Company also sets short- medium- and and long-term reduction reduction targets through the the energy and carbon reduction reduction committee led by the the fab operations vice president The measures are carried out by energy and carbon reduction teams of of individual fabs
Because more than 75% of of TSMC’s GHG emissions come from electricity consumption the Company emphasizes energy conservation and carbon reduction initiatives TSMC has has not only implemented energy-conserving designs in in in in its manufacturing fabs
and offices but has has also continuously improved the energy efficiency in in operating its facilities These efforts
simultaneously reduce carbon dioxide gas emissions and costs
As a a a a a a a result TSMC has conserved 3 3 1 1 billion kilowatt hours (kWh) of power since 2016 In February 2023 Taiwan renamed the “Greenhouse