TSMC Annual Office Green Procurement Spend Ranks First Among Domestic Enterprises
TSMC believes that corporate growth and environmental sustainability can coexist for mutual benefits. The Company's green procurement system supports the use of green building materials and office supplies that are energy efficient, non-toxic, recyclable, and eco-friendly. In 2020, TSMC's green procurement spend accounted for more than 20% of the national total for 3 consecutive years, ranking first among domestic enterprises. At the same time, in full compliance with international laws and regulations and customer requirements for hazardous materials, TSMC doesn't use any restricted or prohibited substances in production, which protects its employees from exposure to toxic substances.
Use of Energy Efficient, Non-toxic, Recyclable, and Eco-friendly Office Supplies
In line with international trends and Goal 12 of the United Nations' Sustainable Development Goals to promote green economy and ensure sustainable consumption and production patterns, TSMC drafted its "Green Procurement Procedures" in 2002. In accordance with the Company's "Environmental Policy," the establishment of this Green Procurement Procedures is to prioritize the use of eco-friendly products certified by Taiwan local or international organizations or government agencies, in an effort to ensure that these products abide by the principle of green procurement, such as low energy consumption, non-toxicity, high recyclability, and eco-friendliness during the entirety of their product life cycle. In 2016, TSMC formally incorporated the Green Product Mark into its Information Technology products procurement specification, which increased the green procurement ratio of office supplies from 53% in the previous year to 89%, and actively furthered the development of green industries.
In addition to procuring eco-friendly office supplies, TSMC also purchases green building materials in accordance with the "Building Guidelines and Regulations, Building Design and Construction," and the procurement ratio is 60% for indoors construction and 20% for outdoors. As of 2020, TSMC has been recognized for the Excellent Performance in Green Procurement Award from Taiwan's Environmental Protection Administration of the Executive Yuan for nine consecutive years. The Company's green procurement ratio for office supplies also reached a new height of 99% in 2020.
TSMC Annual Spend and Ratio of Green Office Supplies Procurement
No Materials Containing Prohibited or Restricted Hazardous Substances Used in Production Process
For raw materials used in the manufacturing process, TSMC also established a hazardous substance classification system and green procurement guidelines to ensure that products do not contain any hazardous substances that are prohibited by international regulations and customers, and avoid the risk of exposure to hazardous substances for its employees. All raw materials, for research and development purposes, any changes to raw materials, and new supplier evaluations must pass the internal green procurement review before use.
In 2020, TSMC further strengthened the ability of its chemical laboratory to analyze hazardous substances. TSMC analyzed 100% of suspected materials that may contain substances which cause cancer, reproductive mutations, and teratogenesis, and devised related screening strategies which detected 178 hazardous substances in semiconductor materials. Furthermore, all Perfluorooctanoic Acid (PFOA) related substances containing more than 7 carbons were replaced. Moving toward its sustainable goals, TSMC intends to replace 95% in 2021 and 100% of N-Methylpyrrolidone (NMP) before 2030, and discontinue the use of Perfluoroalkyl Substances containing more than 4 carbons in all processes. TSMC shall continue to promote its hazardous substance management policies to major raw material suppliers and enhance the supply chain's ability to manage hazardous substances.