Stakeholder Engagement

Stakeholder Engagement

As we progress towards corporate sustainability, TSMC places great importance on the expectations and demands of internal and external stakeholders. As such, 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 Standards are also adopted by TSMC as the enduring standard for identifying material issues within TSMC.

TSMC Materiality

Material Issues and TSMC Value Chain

Operational Impact
Roles Material Issues Operational Impact GRI Standard Specific Topics Upstream TSMC Operations Downstream
Revenue Growth Customer Satisfaction Employee Cohesion Operational Risks c Procurement Stage Wafer Fabrication Packaging/ Testing Customers Use
An Innovation Pioneer Innovation Management Indirect Economic Impact & Energy
Product Quality and Safety Customer Health and Safety
Customer Relations Customer Privacy
A Responsible Purchaser Sustainable Supply Chain Procurement Practices, Supplier Environmental Assessment & Supplier Social Assessment
A Practitioner of Green Power Climate and Energy Energy, Emissions & Economic Performance
Water Stewardship Water & Effluents and Waste
Air Pollution Control Emissions
Circular Resources Waste
An Admired Employer Diversity and Inclusion Diversity and Equal Opportunity
Talent Attraction and Retention Economic Performance, Market Presence, Labor/ Management Relations & Diversity and Equal Opportunity
Talent Development Training and Education
Human Rights Labor/Management Relations, Non-discrimination, Freedom of Association and Collective Bargaining, Child Labor, Forced or Compulsory Labor & Human Rights Assessment
Occupational Safety and Health Occupational Safety and Health
Power to Change Society Social Impact Economic Performance, Indirect Economic Impact & Local Communities

Material Issues & Risk Management

Stakeholder Communication

My children learn about the profoundness of science in the Company's holiday STEAM camp, and they cherish the models made in the course. This camp has made our family's life and work more manageable during the winter and summer vacations. I am very proud of TSMC.

- Shou-Hau Tsai, TSMC employee

From governance and employee engagement to climate change strategy, TSMC has always exceeded our expectations in terms of promptness, level of disclosure and receptiveness to suggestions. Overall we feel very satisfied with the discussions we have had over the years with TSMC.

- Guido Giammattei, Portfolio Manager, RBC Global Asset Management (UK) Limited

A long standing partner, trusted. They are someone we can count on to keep a commitment once the commitment is made. They are extremely professional.

- NVIDIA Corporation

In the face of drastic changes in the global climate and limited resources, we uphold the values of "innovation, responsibility, commitment, and customer partnership" and work together with TSMC to develop green hydrofluoric acid for sustainable circular resources and sustainable development.

- Jian-Wei Lin, General Manager, SUNLIT FLUO & CHEMICAL CO., LTD

Sustainable development is the foundation of our work, the core mission of improving productivity, and the key to creating value for TSMC and society.

- Jhong-Ming Bao, General Manager, United Industrial Gases Co., Ltd.

In addition to actively reducing carbon emissions, TSMC also exerts its influence and drives the value chain to work hard to mitigate climate change. The Company is indeed a model.

- James C. Liao, President, Academia Sinica

TSMC Education and Culture Foundation inspires everyone's ideals, enthusiasm and curiosity about science, so that everyone can find a stage.

- Chuan-Chin Chiao , Director, National Museum of Natural Science

Thanks to TSMC Charity Foundation for co-organizing Technical and Vocational Talent Development Forum, and initiate the job matching program for vocational high school students. This endeavor garnered industry resources to initiate new thinking on talent development.

- Terry Tsao, Global Chief Marketing Officer & President of Taiwan, SEMI