Sustainable Impact

Sustainable Value Creation

TSMC provides advanced processes and technology platforms to help customers realize innovations, drive the success and application of their products, and create value for society and stakeholders. This is a manifestation of the "Better, Together" spirit and a critical reason why TSMC can continue to grow and exert influence. TSMC believes in integrity leadership and has created a sustainability impact management framework based on the Company's strong governance foundation, six major capitals, four core elements, six sustainable management competencies, and Environmental Profit and Loss (EP&L) valuation model to evaluate and manage the entire value chain's contribution to society.

Sustainability Impact Valuation Model

Economic Value Operating Revenue Greenhouse Gases Global Warming Carbon Social Cost of Human Health Damage Individual/Employer/ Social Cost Occupational Injury Working-hour Loss Cash Dividend Water Consumption Drought Taxes Net Income Air Pollution Particulate Matter Employee Compensation Depreciation/ Amortization Photochemical Ozone Volunteer Services Time Value Procurement Increased Output Industry Supply/ Demand Driven by TSMC Value Waste Toxic Substances Environmental Value Social Value Scope & Boundary Output Input/ Impact Pathway Results Measure & Value Impact Planning Application & Valuation

Sustainability Impact Strategy Map

From purchasing and TSMC operations to customer use, TSMC has outlined a strategy map for the value chain derived from the causal relationship between these interconnected lines to comprehensively evaluate our actions. Monetary value serves as a sustainable management tool to measure the potential external costs (-) and values (+) generated by TSMC on the economy, environment, and society.
Customer Use Design Customer Advanced Processes Optimal Surface Area Use Low Energy High Performance IC Innovation Innovative Products Efficient Energy Products TSMC is using a new generation of process technologies to help customers realize innovation and improve energy efficiency. We aim to use technology to better human health, safety, and convenience while at the same time working to build a low-carbon society. 11,617Innovative Products 57.8 Bn kWhEnergy Efficient Products TSMC Operations Operating Revenue Depreciation/ Amortization Net Income Occupational Injury R&D Patent Compensation Corporate Volunteer Environmental Externalities Social Cash Externalities Dividend Input Raw Materials Recruit Talent Sales Product Job Opportunities Production/ Operations Energy Consumption Emissions Pollutant Recycle Efficient Energy Processes Source Reduction Terminal Control Taxes TSMC is innovation-oriented and aims to mitigate social costs and impact from energy consumption with the use of renewable energies, reclaimed water, and the circular economy. We hope to foster a humanistic culture and offer equal opportunities, a healthy and safe workplace, and competitive compensation and benefits. We also encourage employees to engage in social participation and work with the Company to create positive change for society. $1,280.4BnEconomic Value -$15.7BnEnvironmental Value $199.8BnSocial Value Upstream Procurement Environmental Social Externalities Externalities Industry Output Value Driven by TSMC Demand Procurement Job Opportunities Occupational Injury Energy Consumption Supplier Services Compensation Emissions Pollutant Supply & Demand Industry TSMC is taking advantage of its position as a leading global semiconductor foundry to improve the technology and capability of local suppliers, as well as drive development and output value for the semiconductor value chain. To address supply chain sustainability issues, we actively work towards a responsible supply chain to reduce environmental and social impact. $1,080.2 BnEconomic Value -$11.5BnEnvironmental Value $157.6BnSocial Value Causal Relationship Positive Impact Negative Impact