Climate change

Climate change management policy description

Policy Coordinate with the business philosophy and confirm that the activities, products, service nature, scale and environmental impact, and energy use within the scope defined by the management system are appropriate to achieve sustainable development. In addition to the pursuit of product quality improvement, we also fulfill our responsibilities towards environmental and greenhouse gas management in production activities.
Commitment Respond to various eco- friendly/ environmental protection actions, cherish resources, create a comfortable working environment, properly conduct various pollution prevention measures, and deepen the EH&S culture.
Responsible unit EH&S Div.
Resources invested Establish adaptability in every aspect ISO management system verification and ISO14064- 1 verification fee
Complaint mechanism Provide feedback through the e-mail address CSR@unimicron. com at the CSR website
Goals Carbon emissions reduced by 1% Water consumption reduced by 3%
Action plans Implement annual mitigation and adaptation projects with environmental sustainability as our long- term goal.
Other measures -

International system certification

In order to fulfill our commitment towards environmental sustainability and climate change mitigation, Unimicron has set up an environmental management system with clear authority and responsibilities and strong execution. We have established the Environmental Safety and Health Committee, and each plant has appointed environmental management representatives to participate. The Company implements the concept of complete pollution prevention in compliance with local regulations, and implements the action blueprint to actively seek and promote full-range environmental action in the plants. Since the establishment of the factories, we have carefully considered and designed in relation to the potential environmental impacts and risks arising from production activities, and reduced execution risks through standardization. As the environmental sustainability trend changes, we actively respond to this and promote the implementation of cleaner production and international management systems to reduce environmental impact. With requirements from the new version of ISO 14001 in 2015, we are more active in understanding the Company’s current situation and the needs and expectations of stakeholders. We have also decided to establish an environmental management system to implement environmental management.

International or national standards Scope Description of plans for future expansion
ISO 14001 : 2015 All plants in Taiwan Qun Hong Technology At present, all plants have passed the verification, and new plants will be included in the verification standard in the future.
ISO 14064-1 : 2006 All plants in Taiwan Qun Hong Technology All plants in Mainland China At present, all plants have passed the verification, and new plants will be included in the verification standard in the future.
ISO 50001 : 2011 Luchu Plant II In the future, matters will be promoted according to the operating conditions.
PAS 2050 : 2008 Hsinfeng Plant I No planning currently exists
Clean Production Assessment System China Cleaner Production Standard All plants in Mainland China No planning currently exists

Climate change

Unimicron has formulated a greenhouse gas policy, and has set a reduction strategy for all relevant departments to cooperate in the energy conservation projects. Through the small-scale operation of employees, we hope to achieve a reduction strategy that consists of full employee mobilization. The Energy Conservation and Carbon Reduction Management Committee is the Company’s greenhouse gas management review committee, which counts with a chairperson and implementation officer. The major business units and related offices are responsible for reviewing the Company’s matters related to greenhouse gas management. Unimicron also continues to comply with the regulations of ISO 14064-1, inventorize the greenhouse gas emissions of each plant, and write an emission report and disclose it to the public in order to show the Company’s management strategy and determination regarding greenhouse gas emissions. Under the trend of climate change, we have grasped the impact of transformation, regulations and physical risks on corporate strategy, operations and finance through the process of identifying risks and opportunities. At the same time, we look for future opportunities from the aspects of resource efficiency, energy sources, products and services, and resilience. For identified risks and opportunities, Unimicron has developed a corresponding management approaches to reduce risks and impacts, and increase the benefits arising from the opportunities. Therefore, Unimicron strives to reduce the greenhouse gas footprint of operations and products, save the carbon cost of operations, and create differentiated, low-carbon business opportunities.

Major risks and opportunities of climate change Impact Scope of impact Unimicron’s management practices
Risk Transformation New technology investment
Customer behavior changes
Customer preference changes
Increasing operating costs
Increasing R&D costs
Products or services
Company employees
Company equipment
Understand customer demand for technology and next-generation products, grasp the development blueprint of future products, and continue to meet customer expectations with the best service model.
Regulations Air pollution control
Environmental regulations
Uncertainty of new regulations
Increasing operating costs
Increasing R&D costs
Products or services
Company employees
Company equipment
Master the trends and information required by relevant laws and stakeholders to ensure that operations are in compliance with regulations and other requirements
Physical Rainfall patterns and distribution changes
Extreme rainfall and droughts
Average rainfall changes
Operating income reduction
Increasing operating costs
Existing customer churn
Disabled Company operations
Supply chain breakdowns
Decline in stocks and bonds
Production capacity reduction
Sales interruption
Water supply interruption
Products or services
Company employees
Company equipment
Upstream of the value chain
Downstream of the value chain
Establish a business continuity plan to reduce the impact of business disruptions due to risks and emergencies. Ensure that each plant has normal water and power supply, and that the plants’ production operations are safe so that the business continuity plan can be implemented effectively.
Opportunities Resource efficiency Production process
Recycled materials
Increasing operating income
Operating cost reduction
Enhanced operational efficiency
Increased competitiveness
Climate change adaptation
Products or services
Company employees
Company equipment
Implement material localization and support the development of local suppliers. Reduce unnecessary shipping costs and reduce the carbon footprint generated during material transportation. Carry out the recycling of packaging materials and trays.
Use of water resources Actively reduce water consumption in the manufacturing process, and continuously improve process technology to reduce water consumption and pollutants in the production process.
Energy sources Low carbon energy
Policy rewards
Adoption of new technologies
Carbon market participation
Climate change adaptation Climate change adaptation Continue to pursue the goals of reducing energy use, improving energy efficiency, and finding cleaner alternative energy sources
Products and services R&D and innovation Increasing operating income
Climate change adaptation
Products or services
Upstream of the value chain
Downstream of the value chain
Continue to accumulate and enhance R&D resource conditions such as manpower, equipment, and capital, and continuously strengthen and accumulate technical strengths, as well as deepen technology and innovation.
Resilience Energy efficiency improvement
Alternative or diversified resources
Increasing operating income
Operating cost reduction
Increased competitiveness
Climate change adaptation
Products or services
Company employees
Company equipment
Ensure that energy is used reasonably and efficiently through the support of top executives and top-down execution, as well as the implementation of management mechanisms, analyses and projects

Organizational inventory

Every year we conduct greenhouse gas inventories in accordance with ISO 14064-1:2006. Most plants passed the third- party verification unit:SGS Taiwan Ltd. (SGS) verify.The boundaries cover all plants in Taiwan and Mainland China. The base year varies according to plant characteristics. The total greenhouse gas emissions from the base year in the Scopes I and II are 858,103 T-co2 e. In 2018, the overall carbon emissions of Scopes I and II were 811,616 T-co2 e, which is an 8% increase compared to 2017, but also a 7.5% decrease based on the intensity value per million in revenue. It shows Unimicron’s management results in greenhouse gas reduction, the gradual decoupling of revenue growth and carbon emissions, and our moving toward the production model of green products and low-carbon economy.

Greenhouse gas emissions and intensity

Scope Unit Emission area 2014 2015 2016 2017 2018
I Metric tons of Co2 e Taiwan 15,933 15,324 16,350 16,026 18,546
Mainland China 23940 8482 13156 10,358 8,587
Total 39,873 24,305 29,506 26,384 27133
II Metric tons of Co2 e Taiwan 394,269 406,583 414,532 434,028 520,861
Mainland China 346,602 317,694 316,853 292,250 263,577
Total 740,871 724,277 731,385 726,278 784438
I+II Metric tons of Co2 e Taiwan 410,202 421,907 430,882 450,054 539,406
Mainland China 370542 326176 330009 302,608 272,164
Total 780,744 748,582 760,891 752,662 811570
I+II Metric tons of Co2 e/million in revenue Taiwan+Mainland China 12.64 11.58 12.15 11.58 10.72
Total 12.64 11.58 12.15 11.58 10.72
III Metric tons of Co2 e Taiwan NA 423 320 731 837
Mainland China NA 267 314 540 314
Total NA 690 634 1,271 1,151

Note 1: Scope II is electricity use. The emission factors for electricity use in Taiwan are 0.522 (2014), 0.521 (2015), 0.528 (2016), 0.529 (2017), and 0.554 (2018) kg of Co2 e/kWh.
Note 2: Scope II is electricity use. The emission factors in Mainland China are 0.8095 (2015), 0.8112 (2016), 0.7035 (2017), and 0.7035 (2018) tons of Co2e/kWh in East China; and 0.9183 (2015), 0.8959 (2016), 0.8959 (2017), and 0.5271 (2018) tons of Co2 e/kWh in South China.
Note 3: The unit of revenue is TWD.
Note 4: According to the ISO 14064:2006 inventory, Scope III emissions are from employees’ business flights. Since 2017, dormitory-residing employees’ self-paid electricity bills, and gasoline and refrigerants for the Company’s rented vehicles in Taiwan were added. In 2018, refrigerants for the rented vehicles in Taiwan were added (four in total).
Note 5: The source of the GWP value is IPCC 2007 AR4.
Note 6: The above emission data does not include Unimicron Technology (Huangshi) and Chung Hsing Plant.

Energy saving projects

The reduction plan over the years has been mainly focused on electricity and gasoline. Improving efficiency is the top priority of the implementation of energy-saving projects in factories in Taiwan. In order to reduce the risks of future energy price fluctuations and restrictions, we shall also actively promote energy-saving and electricity-saving actions in various factories. Each factory will continue to promote projects, such as rectifier improvement, variable-frequency energy-saving, production deployment, equipment energy-saving mode setting, etc.

Results of past reduction plans

Reduction item 2016 2017 2018
Annual electricity saved (MWh) 17,498 30,423 181,934
Annual electricity saved (one billion joules) 62,992 109,523 31,498
Annual greenhouse gas reduction (metric tons of Co2 e/kWh) 9,787 17,944 10,789
Implementation projects in factories in Taiwan ? Improve production processes and increase efficiency to reduce ineffective energy consumption.
? Replace equipment and upgrade systems to improve energy efficiency.
? Improve management and behavior patterns to avoid wasting resources.
? Production adjustment.

Note 1: The emission factors for electricity use in Taiwan are 0.529 (2016, 2017), 0.528 (2018) kg of CO2 equivalent / kWh.
Note 2: The emission factors in East China are 0.8112 (2016), 0.7035 (2017), 0.5945 (2018) tons of CO2 equivalent/ kWh; and 0.8959 (2016), 0.8959 (2017), 0.8676 (2018) tons of CO2 Equivalent / kWh in South China.

Participate in carbon trading

Shenzhen in Mainland China took the lead in launching carbon emissions trading in June 2013. It is mandatory for enterprises listed on the key energy consumption statistics (monthly emissions > 10,000 tons of carbon emissions. The average emissions of Unimicron Technology (Shenzhen) were 15,000 tons / month in 2010-2012) to conduct emissions permit trading (i.e., the emission control unit). In 2017, the threshold has been reduced to 3,000 tons of carbon emissions per month. Therefore, the Unimicron Technology (Shenzhen) Plant joined the Shenzhen Carbon Trading Mechanism in 2014. As of the end of 2018, the cumulative carbon emissions were approximately 6.26 million tons. If the industrial increments added are pushed back, the quota for 2018 should be about 66,600 tons, and the total accumulated quota about 780,500 tons (2014-2018). After the deduction, there is still a balance of about 154,500 tons, which is temporarily reserved and not traded. Since 2016, the annual carbon emissions of Unimicron Technology (Shenzhen) have been greater than the carbon emission allowance, and the remaining carbon emission allowances will be used to offset Unimicron Technology (Shenzhen)’s annual carbon emissions in the future.

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