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

TSMC has established a Sustainability Impact Strategy Map derived from causal relationships by converting all positive impacts (values) and negative impact (costs) into monetary values, beginning from the direct and indirect impacts of upstream procurement, TSMC operations, and customer use.