Over the past year, the world has faced numerous economic, social and geopolitical changes, including uncertainties in globalization and free trade, lockdowns caused by the COVID-19 pandemic, the war in Ukraine, global transportation bottlenecks, and inflationary pressures. This has tested the resilience of the global supply chain and the adaptability of businesses. As a responsible global corporate citizen, TSMC has accelerated the adoption of ESG (Environmental, Social, and Governance) initiatives in its operations and industrial value chain, and continues to inject positive energy into society.
Prospering with the natural environment is the cornerstone of TSMC's sustainable operations, and a green and low-carbon supply chain is an important part of our 2050 net-zero emissions blueprint. As an industry leader, TSMC uses its green influence to continuously work with suppliers to deepen overall low-carbon management. By providing suppliers with guidance on carbon inventory, energy conservation, and carbon reduction, we encourage them to adopt carbon capture equipment and reduce indirect carbon emissions in the value chain. In 2022, TSMC was again selected by the Carbon Disclosure Project (CDP) as a Supplier Engagement Leader, and we continued to drive the industry towards low-carbon sustainability. In the same year, TSMC's Southern Taiwan Science Park Industrial Reclaimed Water Plant started operations, and our Zero-Waste Manufacturing Center is expected to start operation in 2023. At our Arizona fab, we also plan to build an industrial recycled water plant to gradually achieve near zero liquid discharge, advancing toward our goal of circular economy. We continue to make every effort to minimize environmental externalities through prudent decision-making and coordinated global action on four major issues: climate and energy, water stewardship, circular resources, and air pollution control.
As the leading provider of semiconductor process technology and manufacturing services, TSMC uses the power of semiconductor innovation to make products stronger, smarter, safer, more energy efficient, and more advanced to enrich people's lives and empower society for the common good. I am very proud of TSMC's employees across the company who work hard for this mission. Guided by our Human Rights Policy, TSMC continues to create a working environment that respects human rights. This means we provide a dignified workplace that is diverse, equal, and inclusive (DEI) and promotes the integration of global talents, and we require our supply chain partners to follow the same standards. At the same time, we continue to deepen our connection with the society and wholeheartedly support global STEM education. Through the TSMC Education and Culture Foundation and the TSMC Charity Foundation, we deepen community relations, care for the disadvantaged, and preserve national art and culture, laying a solid foundation for social progress with common values.
In 2022, we released the UN SDGs Action Report for the first time to disclose the company's SDGs action plan and progress. We also explained the company's management policy on major issues with our Materiality Analysis Report to enhance the transparency of sustainable information disclosure. In order to make the Board of Directors more comprehensive and transparent and achieve better corporate governance, we also prepared for the establishment of the Board's Nominating, Corporate Governance and Sustainability Committee, which was approved in February 2023, strengthening the effectiveness of its sustainability governance. The Board of Directors also decided to change the Audit Committee to the Audit and Risk Committee and the Compensation Committe to the Compensation and People Development Committee to expand and deepen its supervision and review responsibilities, making the corporate governance structure more robust.
We have a deep understanding of TSMC's key position in the global semiconductor industry and its influence on many economies, and are keenly aware of our urgent responsibilities in sustainability that we shoulder as a corporate citizen. As TSMC's global business expands, we will deepen our partnership with stakeholders including employees, public associations, communities, investors and shareholders, and our supply chain and customers, listen to the voices of all parties, and open a new chapter of sustainable development together.
