TSMC ESG - TSMC Launches “Supplier Human Rights Management Tracking Platform” to Strengthen Operational Resilience

TSMC upholds its “Human Rights Policy,” emphasizing respect for all individuals and fostering a decent work environment. As global awareness of human rights issues grows, TSMC is dedicated to cultivating a responsible supply chain. Beyond safeguarding human rights across its operational sites, TSMC actively works to enhance its suppliers' human rights governance capabilities. In 2024, TSMC integrated human rights management performance into its sustainability objectives for the first time. The Company supports suppliers in strengthening their human rights management through a four-stage process: identifying human rights performance, measuring improvement direction, managing support resources, and tracking execution effectiveness. By the end of the first quarter of 2025, suppliers categorized as D and E levels, whose human rights performance fell short of standards, completed improvements on 24 human rights issues identified in the Self-Assessment Questionnaire (SAQ). Furthermore, TSMC has launched the “Supplier Human Rights Management Tracking Platform,” offering various tools such as demonstration cases, educational materials, and online consultations to verify progress and continuously advance human rights management practices.

TSMC’s Four-Stage Supplier Human Rights Management

Supplier Classification and Tracking for Improved Human Rights Performance

TSMC conducts an annual supplier SAQ to assess suppliers’ development status. In 2024, in alignment with international trends, TSMC enhanced the human rights management sections of the questionnaire. Based on the responses, suppliers are categorized into five human rights performance levels, from A to E, with priority guidance given to those rated at levels D and E. To enhance human rights awareness and management actions within the supply chain, TSMC hosted themed online courses and in-person workshops, totaling six sessions with approximately 1,377 participants, achieving an average satisfaction rate of 98%. One course was conducted online in English to facilitate better understanding and participation among foreign supplier personnel. Additionally, TSMC identified 24 tasks from the 76 human rights questions in the SAQ that could be improved in the short term. A human rights management tracking platform was used to monitor execution progress. TSMC also provided examples from the company and industry for specific questions, offered workshop audio materials, and conducted online Q&A sessions to optimize suppliers' human rights governance.

Respecting and safeguarding human rights is fundamental for enterprises striving for sustainable operations, and it remains a pivotal focus for TSMC in advancing ESG initiatives. As global attention intensifies on human rights governance within supply chains, TSMC is committed to continuously strengthening our management practices to guarantee the thorough application of human rights standards across our supply chain management.

Vanessa Lee,Vice President of Materials Management at TSMC

TSMC Supplier Human Rights Capability Enhancement Program

Course Type	Course Name	Course Content	Grades of Participating Suppliers
Online	Supply Chain Human Rights Policy and Management Plan	Introduction to corporate human rights issues and scope; Explanation of TSMC's human rights governance and inclusion concepts; Sharing of TSMC's supply chain human rights issue management direction.	A, B, C, D, E
Online	Guidelines on Respecting Human Rights for Taiwanese Enterprises and Supply Chains	Overview of the latest international trends and standards for human rights in corporations and supply chains; Explanation of Taiwan's corporate and supply chain human rights guidelines; Case studies on corporate transformation and human rights advancements.	A, B, C, D, E
Online (Delivered in English)	TSMC Supplier Human Rights Management Enhancement Program	Introduction to global human rights management trends; Explanation of human rights issues in corporate operations; Sharing TSMC's supplier human rights governance strategies and plans.	A, B, C, D, E
On-site Workshop	Supplier Diversity, Equity, and Inclusion (DEI)	Introduction to corporate inclusion issues and scope; Explanation of promotion processes and achievements of leading enterprises; Practical insights from TSMC's employee resource groups.	A, B, C, D, E
On-site Workshop	Supplier Human Rights Enhancement	Introduction to the six major human rights categories in corporate operations; Explanation of implications and improvement directions of supplier SAQ human rights questions; Demonstration cases of benchmark enterprise human rights governance.	D, E
On-site Workshop	Supplier Human Rights Platform Demonstration	Introduction to TSMC's human rights management tracking platform and practices; Explanation of methods to enhance the six dimensions of human rights; Key points and answering methods for supplier SAQ human rights questions.	D, E

The most impressive aspect of the content is how Taiwanese enterprises are addressing the international supply chain restructuring and their commitment to respecting human rights. These perspectives have a profound impact on the future business strategies of our company.

TSMC “Guidelines on Respecting Human Rights for Taiwanese Enterprises and Supply Chains” Participant Supplier

I extend my gratitude to TSMC for organizing courses and workshops focused on human rights and for their generous assistance and support. These efforts have been invaluable to small and medium-sized enterprises that often operate with limited resources.

TSMC “Supplier Human Rights Enhancement Workshop” Participant Supplier

TSMC is committed to advancing human rights management within its supply chain. In the second quarter of 2025, TSMC plans to conduct a second wave of supplier SAQ gap analysis. Based on the results, TSMC will broaden the scope and target of human rights guidance. Furthermore, TSMC will continue to provide thematic courses aligned with international trends and supplier needs, aiming to enhance human rights performance across the supply chain and foster a society of mutual benefit.