TSMC Climate and Nature Management Framework

CategoryCorporate Management Strategies and Actions2023 Execution Summary
GovernanceThe Board will regularly review risks and opportunities related to climate change
  • Expanded renewable energy use and reviewed progress at each stage
  • The ESG Steering Committee regularly monitored and reviewed SBT submission progress and target execution
  • The Energy Saving and Carbon Reduction Committee defined five major energy conservation teams and adopted the achievement rate of annual energy conservation targets and the level of innovation for energy conservation ideas as benchmarks to encourage the conception and implementation of energy conservation ideas
  • The chairperson of Risk Management Steering Council reported to the Audit and Risk Committee regarding net zero transition, water resources, power supply risks, natural disasters, regulations, and other issues related to climate change
StrategiesOrganize interdepartmental discussions and identify short-, mid-, and long-term climate risks and opportunities
  • Promoted "Green Energy for Charity Project" to install photovoltaic (PV) systems for charity organizations and schools in remote townships. See "Renewable Energy Systems" for more information
Assess the potential financial and operational impact on TSMC from major climate risks and opportunities
Conduct scenario analysis and assess SBT and net zero emission blueprint and actions
Assist suppliers in enhancing awareness and adaptability to climate risks, develop and implement specific carbon reduction actions
  • Required major emission contributors to execute GHG emission reduction agreement and commit to the reduction targets
  • Implemented "TSMC Supply Chain Carbon Reduction Action Strategy" to assist suppliers in achieving the carbon reduction targets
Risk ManagementUse TCFD and TNFD frameworks to develop a process for identifying climate/nature risks
  • Evaluated the qualitative and quantitative financial impact of major climate/nature risks/opportunities discussed in the climate/nature risk/opportunity workshop
Set up and implement response measures based on climate risk identification and prioritized result
  • Reported assessment results of the climate risks/opportunities and response plans to the ESG Committee Chairperson
Integrate climate risk identification and assessment in the ERM process
Metrics and TargetsSet management metrics related to climate/nature
Through ISO 14064 annual inventory and disclosure of GHG emissions, review the impact on the Company's operations and assess the risks of Scope 1, Scope 2, and Scope 3 and related mitigation strategies
  • Continued to implement carbon reduction measures based on various inventory and evaluation results. See "Drive Low-carbon Manufacturing" for more information
Set climate/nature management targets and review progress and performance