Taiwan Semiconductor Manufacturing : 2021 UN SDGs Action Report

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UN SDGs Action Report

Contents

03

Letter from the ESG Committee Chairperson

From Answering the Call to Taking Action on SDGs

04

UN SDGs

The Opportunity to

Build a Great World

05

Commitment to SDGs

Integrate the Power for Change

10

Sustainability Action Plans and Progress

Drive for Meaningful Influence

26

Sustainability from Initiatives and Collaboration

Build Diverse Partnerships

2021 TSMC

UN SDGs Action Report

Letter from the ESG Committee theC airperson

From Answering Call to Taking Action on SDGs

In response to the severe challenges facing humanity, the UN in 2015 set 17 Sustainable Development Goals (SDGs) for achieving a sustainable and equitable world by 2030, a blueprint for bringing both peace and prosperity to all peoples in the present and the future. We now have less than 10 years until 2030. Today, shifting geopolitical landscapes, the COVID-19 pandemic, and the dangers of climate change accentuate the importance of moving resolutely towards our 2030 SDGs through innovation and positive thinking.

As the world's leading provider of semiconductor process technologies and fabrication services, TSMC drives IC chip innovation for more advanced, powerful, energy-efficient, and safe products that enhance people's quality of life and serve as a key to building a sustainable society. During the COVID-19 pandemic, semiconductors accelerated supercomputing to speed up vaccine development, contributing to the fields of biology and medical technology. The pandemic also changed our way of life as consumers become accustomed to digitalization, driving growth in data centers that consume 1% or more of the world's electricity. TSMC is helping data centers achieve optimal performance with innovative semiconductor technologies to ensure that data centers are both energy-efficient and cost-effective. We are dedicated to overcoming all the challenges that present themselves as we strive toward our sustainable development goals and we will continue to empower change in modern society.

From Answering the Call	The Opportunity to	Integrate the Power	Drive for Meaningful	Build Diverse		03
to Taking Action on SDGs	Build a Great World	for Change	Influence	Partnerships

In 2021, TSMC deployed 291 process technologies to enable 12,302 products for 535 customers. On the basis of our technological excellence, TSMC has identified five ESG strategic directions that align with the pillars of SDGs: Drive Green Manufacturing, Create a Diverse and Inclusive Workplace, Build a Responsible Supply Chain, Develop Talent, and Care for the Disadvantaged. We look forward to contributing TSMC's innovation and sustainability to work in collaboration with stakeholders for a sustainable future of common good.

Lora Ho

Senior Vice President and

ESG Committee Chairperson

2021 TSMC

UN SDGs Action Report

UN SDGs

The Opportunity to

Build a Great World

The 2030 Agenda for Sustainable Development was proposed by the UN to succeed the Millennium Development Goals (MDGs), which failed to relieve human plight or meet established milestones. For the 2030 Agenda, the UN developed a set of people-centered global SDGs to achieve a sustainable and equitable future for all peoples.

The 2030 Agenda for Sustainable Development includes a collection of 17 sustainable development goals and 169 specific targets, calling for developed and developing nations to take actions through global partnerships to end poverty, promote health and education, reduce inequality, stimulate economic growth, and protect biodiversity in our oceans and forests to defend against climate change.

According to the Sustainable Development Report 2021 published by the Cambridge University Press, the global SDG index score was lower than the previous year (2019) for the first time ever since the SDGs were established in 2015, mainly because of rising poverty and unemployment rates caused by the COVID-19 outbreak. The global economy, society, and environment were all

From Answering the Call	The Opportunity to	Integrate the Power	Drive for Meaningful	Build Diverse		04
to Taking Action on SDGs	Build a Great World	for Change	Influence	Partnerships

impacted by the pandemic. Governments around the world prioritized non-pharmaceutical intervention and vaccine development and delivery to contain the pandemic, restore faltering economies, and eliminate obstacles to sustainable development.

TSMC recognizes that it is impossible for a single company or country to overcome the challenges to global sustainable development. Effective and multilateral operations are required to tackle present and future risks. Rooted in our enduring mission for sustainability, TSMC can contribute its industry-acquired core competencies to fulfilling five sustainability roles. At the same time, TSMC collaborates with internal and external stakeholders and ta kes tangible actions to meet UN SDG targets so that we can continually exert positive change

and influence to achieve our vision of common good by 2030.

2021 TSMC

UN SDGs Action Report

From Answering the Call	The Opportunity to	Integrate the Power	Drive for Meaningful	Build Diverse		05
to Taking Action on SDGs	Build a Great World	for Change	Influence	Partnerships

IntegrateCommitment o SDGs

the Power

for Change

TSMC's Sustainability Roles and Commitment

TSMC's ESG vision is to uplift society, and the Company bears a sense of commitment to the UN SDGs. Capitalizing on our core innovative capabilities in semiconductor manufacturing , we focus on five ESG strategic directions relevant to our core business: Drive Green Manufacturing, Build a Responsible Supply Chain, Create a Diverse and Inclusive Workplace, Develop Talent, and Care for the Disadvantaged. TSMC works towards the UN SDGs through these five sustainability goals.

Vision and Mission		ESG Directions		Sustainability Roles
Vision: To Uplift Society		Drive Green Manufacturing	Develop Talent	An Innovation Pioneer	An Admired Employer
Mission: Act with Integrity, Strengthen Environmental		Build a Responsible Supply Chain	Care for the Disadvantaged	A Responsible Purchaser	Power to Change Society
Protection, Care for the Disadvantaged		Create a Diverse and Inclusive Workplace		A Practitioner of Green Power