Global Unichip : ESG Report

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2

About the report	1
	Introduction

GUC ESG Policy 2

Five Aspects of Environmental Sustainability 3

The Goal of Sustainable Management	4
Practicing UN SDGs 5
About the report	6

A Message from the Executive Secretary of the ESG Sustainability Committee 9

Introduction 10

1.1	Company Introduction 11
1.2	Our Belief, Mission, and Vision 12

Performing

Sustainable Management

2.1 ESG Implementation Structure	14
2.2 ESG Management Platform 15
2.3 ESG Key Performance 16
2.4 ESG Management Performance	19

2	3	4	5	6		2022	1
Performing	Stakeholders	Corporate	Environmental	Employee Relations	Appendix
Sustainable	Communication	Governance	Protection and Energy	and Social
Management			Conservation	Engagement

3	Stakeholders Communication	22
3.1	Stakeholders Communication Procedure 23
	3.2	Stakeholder Interaction	24
	3.3	Materiality Analysis 25
	3.4 Major Theme Changes	32
4								6	Employee Relations
Corporate Governance 33			and Social Engagement 84
		6.1	Key Results and Strategies	85
4.1	Efficient Governance System	34	4.6 Responsible Procurement	47		6.2	Inclusive Workplace	86
	4.2	Financial Performance	34		4.7 Risk Management 59			6.3	Human Rights Protection	107
	4.3	Board Functions and Strategies	37					6.4	Social Engagement	108
	4.4	Management of Innovation 44
	4.5	Customer Relationship Management	46
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5	Environmental Protection				Appendix	112
and Energy Conservation	66			Index of Sustainability Indicators	112
5.1	Key Results and Strategies 67			5.6 Waste Management 77		Independent Third Party Verification Opinion Statement 116
	5.2	Climate Change Adaptation Strategies	68	5.7 Green Products 79

5.3 Carbon Management and Net Zero Commitment 72	5.8 Environmental Management 83
5.4 Energy Management 73
5.5 Water Resources Management 76

About the report

1

Introduction

2

Performing

3

Stakeholders

4

Corporate

5

Environmental

6

Employee Relations

Appendix2022

2

Sustainable Management

Communication

Governance

Protection and Energy

Conservation

and Social

Engagement

GLOBAL UNICHIP CORP.

ESG Report

GUC ESG Policy

In October 2022, GUC established the Net-Zero Committee. Its purpose is not only to respond to the Corporate Governance-Sustainable Development Roadmap, but also to demonstrate to all stakeholders that GUC will not postpone its relevant corporate social responsibilities due to the small scale of the company and lack of a factory, but will in fact take more active actions, set net-zero as the ultimate carbon reduction goal, and declare its intention to SBTi to reduce the company's carbon emissions by 50% by 2030, and achieve net-zero carbon by 2050.

GUC's sustainable policy is: "Pay attention to environmental, social, and corporate governance issues; implement the spirit of common good, and become a part of global sustainable development."

GUC 2022 Annual Performance Highlights

In this report, we will explain the company's corporate social responsibility performance in 2022, and through the compilation of the ESG report, we will transparently and detailedly disclose the company's key information, and respond to issues that stakeholders value, and then introduce the company's sustainable management concept, play a positive cycle of a friendly society. In the post-epidemic era, the global cross-industry demand for semiconductor chips was surge. From the second half of 2022, as major manufacturers adjust production capacity and terminal demand slows down, the market was gradually return to normal, the prosperity is no longer there, and the strength of the operation of the semiconductor industry chain is quite clear. In 2022, GUC's growth momentum was remain unabated, and it is continue to create impressive performance records.

The following are our key performances in 2022:

NTD 24.04 Billion

Consolidated revenue in 2022, a 59% increase from the previous year, a record high

34.7%

Gross margin in 2022, an increase of 0.1 percentage points from 34.6% in the previous year, a record high

NTD 8.08 Billion

4Q22 single-quarter revenue hit a record high

NTD 1.35 Billion

4Q22 single-quarter EPS hit a record high

Seven months in a row

Monthly revenue hit record high (2022/6~2022/12)

18,568 thousand shares

(10/28/2022)

Stock trading volume hits record high

Won theTIRI Annual Best Investor Relations Award

(Corporate and Individual Double Awards)

Complete the 2021 global site GHG inventory and verification

GLink 2.5D

Won the Global Electronics Achievement Award

GLink 3D

GLink 3D IP Won the Asian Golden Award

NTD 17.9 Billion

The amount of local procurement in 2022 was account for 94%

237 vendors

GUC uses 100% responsible minerals approved smelters

About the report

1

Introduction

2

Performing

3

Stakeholders

4

Corporate

5

Environmental

6

Employee Relations

Appendix2022

3

Sustainable Management

Communication

Governance

Protection and Energy

Conservation

and Social

Engagement

GLOBAL UNICHIP CORP.

ESG Report

Five Aspects of Environmental Sustainability

Environmental Sustainability

Carbon			Green
Regulatory	Green	Green
Neutrality		Compliance		Product		Supply Chain		Awareness

GUC is gradually moving towards the goal of carbon neutrality in 2050. At present, we have completed the ISO 14064-1 global (including subsidiaries) carbon inventory, and will schedule the SBTi & TCFD tutoring plan in 2023. Through a complete inventory of carbon emissions, To set scientific and feasible carbon reduction targets.

Now that countries are paying more and more attention to carbon issues, in addition to responding to the Taiwan government's local regulatory progress, we also pay attention to the cognition of relevant foreign regulations at any time, so as to strengthen the cognition of regulations and formulate response plans.

From the stage of product design R&D, the 3R green design concept (i.e., reduce, Reuse, and Recycle of raw materials) is implemented. There are also review and related requirements for green procurement, in order to reduce the impact on the environment from raw materials, manufacturing to final disposal. In the future, it is expected to introduce carbon footprint management to minimize carbon emissions.

GUC takes various environmentally friendly actions, and fully uses green materials from product design, and manufacturing to packaging, completely incorporating environment protection awareness to the production and quality management systems.

In response to green finance and fostering sustainable industries, GUC took the lead in participating in Mega and Yongfeng's green fixed deposits in 2022, investing a total of 270 million yuan to jointly advance towards the goal of sustainability. The installation of solar panels on the top floor of the company is expected to generate approximately 22,000 kWh of green electricity per year in the future, which will not only increase energy self-sufficiency, but also reduce carbon emissions from energy use, and will deeply root green awareness in the hearts of all employees.

About the report	1	2	3	4
Introduction	Performing	Stakeholders	Corporate

5

Environmental

6

Employee Relations

Appendix2022

4

Sustainable	Communication	Governance
Management

The Goal of Sustainable Management

Protection and Energy

Conservation

and Social

Engagement

GLOBAL UNICHIP CORP.

ESG Report

Goal

Measure

Performance

ISO system

management

To maintain the existing ISO certification and incorporate it into the new ISO system according to the sustainable policy

1. Comply with ISO 9001 and accept third-party verification
2. GUC passed the ISO 14064-1 greenhouse gas inventory standard and obtained the certificate
3. Comply with the ISO 27001 international standard related to information security and obtain verification in 2021
4. Obtained ISO 13485 medical equipment quality management system certification in 2017

Acquired ISO 9001, ISO 14064, ISO 27001, ISO 13485

Energy

management

To save 1% of the total electricity consumption in the previous year every year, and use renewable energy to reduce carbon emissions in the long-term plan

1. Master the energy usage status, obtain the ISO 14064-1 verification statement, and implement energy management in a planned way
2. Continue to promote various energy performance management through energy- saving improvement management solutions such as building lighting and air-conditioning equipment

In 2022, the electricity energy intensity will decrease by 0.0052% from 0.0165% in the previous year

Water resource

management

Cooperate with the trade union policy of the park, strengthen water-saving measures during the water-saving period, and record water consumption every day to achieve the goal of saving 10% of water in a single month

1. Set up rainwater recycling system
2. Ensure the proper rate of water equipment, faucets and toilets
3. Continue to promote water-saving measures

In 2022, the electricity energy intensity will decrease by 0.0052% from 0.0165% in the previous year

Waste

management

Continuously take the inspection of the raw material supply process and strengthen the internal raw material control mechanism as the long-term goal, and be responsible for the environment in the production process

Through the 3R green design concept of Reduce, Reuse, and Recycle, a large amount of R&D resources and innovative energy-saving technologies are invested in the initial product design stage to reduce the impact on the environment.

In 2022, about 5,500 paper invoices have been saved, carbon emissions have been reduced by about 70kg, and the number of crystal boat boxes has been reduced by 2,400, saving 12,000,000 yuan.

Carbon emission

management

Based on 2021, the goal is to reduce carbon emissions by 5% per year, and achieve carbon neutrality by 2050

1. Replacement of LED lighting fixtures in the office and aisle area
2. The uninterruptible power supply equipment is replaced with new ones, and new equipment with high efficiency and low energy consumption is replaced
3. Replace the old ones with new ones, and replace them with new ones with high efficiency and low energy consumption

Promote 24 energy-saving projects in 2022, with an annual energy saving of 216,400 degrees and a reduction of carbon dioxide emissions of 110.15 tCO2e per year