TSMC has established a framework for ESG disclosure in compliance with the latest AA 1000 Accountability Principle issued in 2018. The framework is established on the four major principles of Inclusivity, Materiality, Responsiveness, and Impact. Each year, TSMC regularly evaluates stakeholder feedback and ESG trends through diverse communication channels. We also continue to conduct materiality analysis to identify material ESG topics and establish long-term ESG targets, adopt action plans, and track ESG progress and efficacy accordingly. GRI Universal Standards 2021 is also adopted by TSMC as the enduring standard for identifying material issues within TSMC.
On climate-related issues, TSMC is using the Task Force on Climate-related Financial Disclosures (TCFD) framework proposed by the Financial Stability Board (FSB) to identify climate risks and opportunities. Based on the results, measures and goal management were established to effectively track response progress and outcomes, thereby lowering the financial impact of climate risks on business operations. In September 2021, TSMC published its TCFD Report, becoming a semiconductor industry frontrunner in climate disclosure. The Report is updated every year.
In addition, TSMC also discloses ESG information and data according to semiconductor industry indicators issued by Sustainability Accounting Standards Board (SASB).