TSMC 2025 Sustainability Report Now Available Online

Driven by innovation as a growth engine, TSMC advances sustainable development through its five ESG directions and manages actions and performance through its five sustainability roles. The latest TSMC 2025 Sustainability Report, designed with the theme of "Crystalline Light, Sustainability in Sight," transparently presents the Company's concrete progress in aligning with global trends and stakeholder expectations. In addition to focusing on the three sustainability commitments of Net Zero Emissions, Water Positive, and No Net Loss (NNL) of Nature and Biodiversity, the report identifies Biodiversity as a material issue for the first time, demonstrating TSMC's focus on the natural environment and value chain resilience. TSMC looks forward to working with stakeholders to advance shared prosperity across the economy, environment, and society.

To integrate sustainability goals into daily operations, TSMC links ESG indicators with its performance management and compensation systems for employees at all levels, establishing a top-down accountability and incentive structure. At the senior executive level, TSMC provides Employee Restricted Stock Awards. Effective in 2025, the Company also adopted an annual Long-Term Incentive bonus plan, tied to a set of performance metrics. The achievement of these performance metrics determines the payout ratio, strengthening operational resilience. For managers and non-managerial employees, TSMC encourages the incorporation of long-term goals for material issues into performance evaluation references. The Company also integrates knowledge construction, innovation cultivation, and responsive action indicators that support TSMC's sustainability culture. These efforts strengthen participation across the company, further embed ESG into daily work, and increase TSMC's long-term competitiveness.

TSMC's sustainability commitments extend from business operations to the natural environment. In response to the addition of Biodiversity as a material issue, TSMC promotes cross-organizational collaboration, focusing on two strategies: Achieve No Net Loss (NNL) of nature and biodiversity and promote ecological restoration and education. TSMC has developed the "Nature and Biodiversity NNL Action Blueprint" and is committed to realizing Net Positive Impact (NPI). In 2025, TSMC demonstrated its commitment to green action through the "Eco Plus! Ecological Harmony Program" and the "Plant-A-Tree Program," building collaborative platforms for environmental sustainability. These initiatives enabled TSMC to become the first company in Taiwan to restore an endangered species within its facility grounds and to complete a natural carbon sink registration through coastal afforestation. TSMC also supported academic ecological research, developed ecological talent, and launched water resource restoration initiatives at overseas sites, working with partners in Taiwan and abroad to build environmental sustainability.

Guided by its belief in driving positive change, TSMC will continue investing in innovation, bring together diverse values while promoting harmony with the environment, and work with stakeholders to open new opportunities for sustainability. To learn more about TSMC's sustainability actions, please refer to the TSMC 2025 Sustainability Report, Sustainability website, and subscribe to the TSMC ESG Newsletter for the latest updates.

• What are TSMC's five ESG directions?

TSMC's five ESG directions are: Drive Green Manufacturing, Build a Responsible Supply Chain, Create a Healthy and Inclusive Workplace, Develop Talent, and Care for the Underprivileged.  

• What are TSMC's five sustainability roles?

TSMC's five sustainability roles are: An Innovation Pioneer, A Responsible Purchaser, A Practitioner of Green Power, An Admired Employer, and Power to Change Society.