Resources: Global Reporting Initiative Index - TSMC Corporate Social Responsibility

Disclosure Number	Disclosure Title	Report Contents or Explanation	Page
The organization and its reporting practices
2-1	2-1 Organizational Details	About TSMC	6
2-2	Entities included in the organization's sustainability reporting	Appendix – About this Report	217
2-3	Reporting period, frequency and contact point	Appendix – About this Report	217 234
2-4	Restatements of information	Appendix – About this Report	217
2-5	External assurance	Appendix – Independent Third Party Assurance Statement	233
Activities and workers
2-6	Activities, value chain and other business relationships	Sustainable Business Practices – A Responsible Purchaser – Value Chain	75
2-7	Employees	Sustainable Business Practices – An Admired Employer – Diversity and Inclusion - Talent Attraction and Retention Please refer to 2022 TSMC Annual Report 5.6 Human Capital	135 141
2-8	Workers who are not employees	Sustainable Business Practices – An Admired Employer - Talent Attraction and Retention	141
Governance
2-9	Governance structure and composition	Sustainable Business Practices – ESG Management Platform Operation and Governance – Corporate Governance - Board of Directors and Committees Please refer to 2022 TSMC Annual Report: 2.3.1 Organization Chart 2.4.1 Information Regarding Board Members 3 Corporate Governance	13 205
2-10	Nomination and selection of the highest governance body	Sustainable Business Practices – ESG Management Platform Investors – Corporate Governance – Board of Directors Investors – Corporate Governance – Audit Committee Investors – Corporate Governance – Compensation Committee Guidelines for Nomination of Directors Please refer to 2022 Annual Report: 3.2 Board of Directors / Nomination and Election of Directors	205
2-11	Chair of the highest governance body	Operation and Governance: Corporate Governance - Board of Directors and Committees	205
2-12	Role of the highest governance body in overseeing the management of impacts	Operation and Governance: Corporate Governance - Board of Directors and Committees Operation and Governance: Corporate Governance – Risk Management Sustainable Business Practices – ESG Implementation Framework – ESG Management Platform Please refer to 2022 TSMC Annual Report 3.2 Board of Directors/Board Responsibilities: The board of directors will consider economic, environmental, and social aspects and their impacts, risks and opportunities, as well as stakeholder opinions when making important decisions, such as the capital expenditure. In each quarter, TSMC’s management reports to the Board on various subjects (including ESG programs) and strategies, and spends substantial time and effort to communicate with the Board. The Board would comment on the risk and probabilities for success of the proposed corporate strategies. The Board also periodically oversees those strategies’ implementation and outcomes, and may suggest the management team to make adjustments to the strategic goals and objectives if necessary. 3.2.1 Audit Committee 3.2.2 Compensation Committee 3.4 Taiwan Corporate Governance Implementation as Required by Taiwan Financial Supervisory Commission 6.3 Risk Management 7.1 ESG Overview/ESG Management, Stakeholder Engagement	205 206 12,13
2-13	Delegation of responsibility for managing impacts	Sustainable Business Practices – ESG Management Platform Operation and Governance – Corporate Governance – Risk Management	13 206
2-14	Role of the highest governance body in sustainability reporting	TSMC Sustainability Report is reviewed and supervised by the top management of each unit and ESG Committee Chairperson Please refer to 2022 TSMC Annual Report – 3. Corporate Governance	-
2-15	Conflicts of interest	Sustainable Business Practices – Corporate Governance –Ethics and Regulatory Compliance The avoidance of conflicts of interests is governed by several corporate processes. First, any director or executive officer who, for him/herself or on behalf of another, wishes to engage in any business activity that overlaps with TSMC's business must obtain the prior approval of our shareholders' meeting or Board of Directors respectively in accordance with relevant laws. Second, each board member and executive officer must complete an annual declaration on related party transactions which is reviewed by our Audit Committee. Third, we are subject to strenuous reporting requirements on reporting any related party transactions under both R.O.C. and U.S. security rules. Please refer to 2022 TSMC Annual Report: 2.4.1 Information Regarding Board Members 4.1.4 Major Shareholders 4.1.8 Related Party Relationship among TSMC’s 10 Largest Shareholders 5.3.5 Raw Materials and Supply Chain Management/Suppliers Accounting for at Least 10% of Annual Consolidated Net Procurement of 2021-2022 5.4.1 Customers/Customers Accounting for at Least 10% of Annual Consolidated Net Revenue 8.1 Subsidiaries Please refer to Consolidated Financial Statement for 2022 – Note 33 –Related-party Transactions and Note 37- Additional Disclosures	208
2-16	Communication of critical concerns	Sustainable Business Practices- Materiality Analysis and Stakeholder Communication	17
2-17	Collective knowledge of the highest governance body	Please refer to 2022 TSMC Annual Report: 3. Corporate Governance / Continuing Education/Training of Directors in 2022 Furthermore, through regular quarterly corporate sustainability reports and management team reports, the overall knowledge, skills, and experience of board members in sustainable development issues will be enhanced.	-
2-18	Evaluation of the performance of the highest governance body	Please refer to 2022 TSMC Annual Report: 3.2.4 Director and Committees Members’ Attendance 3.1 Corporate Governance/2022 Corporate Governance Awards and Ratings 3.2 Board of Directors/Directors’Compensation 3.4 Taiwan Corporate Governance Implementation as Required by Taiwan Financial Supervisory Commission – Non-implementation and Reasons III 7.1 ESG Overview/ESG Management, Stakeholder Engagement	-
2-19	Remuneration policies	Sustainable Business Practices – An Admired Employer – Talent Retention and Cultivation Please refer to 2022 TSMC Annual Report – 2.4.2 Remuneration Paid to Directors and Independent Directors, 3.2 Board of Directors, 5.6.6 Competitive Overall Compensation, 5.6.11 Retirement Policy	141
2-20	Process to determine remuneration	Sustainable Business Practices – An Admired Employer – Talent Retention and Cultivation – Competitive Compensation Packages Sustainable Business Practices – Operation and governance Please refer to 2022 TSMC Annual Report – 3.2.2 Compensation Committee, 3.2.3 Corporate Governance Officer, 3.2.4 Director and Committees Members’ Attendance, 4.6 Status of Employee Restricted Stock, 5.6.6 Competitive Overall Compensation	141,146 205
2-21	Annual total compensation ratio	Sustainable Business Practices – An Admired Employer – Talent Retention and Cultivation - Corporate Officer Shareholding Guidelines Please refer to 2022 TSMC Annual Report – 5.6.6. Competitive Overall Compensation	147
Strategy, policies and practices
2-22	Statement on sustainable development strategy	Sustainable Business Practices – ESG Implementation Framework – ESG Management Platform Letter from the ESG Steering Committee Chairperson Letter from the ESG Committee Chairperson	12,13 4 5
2-23	Policy commitments	Sustainable Business Practices – ESG Implementation Framework – ESG Management Platform Operation and Governance – Corporate Governance - Ethics and Regulatory Compliance TSMC ESG Policy, Human Rights Policy, Diversity and Inclusion Statement, Climate Change Statement, Environmental Policy, Safety and Health Policy, and Information Security Declaration TSMC established TSMC Ethics and Business Conduct Policy to be the guide for operating business with integrity. Adhering to the core value, Integrity, Commitment, Innovation, and Customer Trust, TSMC forms a robust culture.	12,13 208
2-24	Embedding policy commitments	Sustainable Business Practices – ESG Implementation Framework – ESG Management Platform Operation and Governance – Corporate Governance – Ethics and regulatory compliance TSMC Supplier Code of Conduct and Supplier Sustainability Standard help set guidelines for suppliers to understand and abide by TSMC’s business ethics.	12,13 208
2-25	Processes to remediate negative impacts	For ethics and regulatory compliance, please refer to 2022 TSMC Annual Report 3.5 Code of Ethics and Business Conduct - Reporting Channels and Whistleblower Protection	-
2-26	Mechanisms for seeking advice and raising concerns	Please refer to 2022 TSMC Annual Report 3.5 Code of Ethics and Business Conduct - Reporting Channels and Whistleblower Protection, 5.6.9 Employee Engagement – Employee Communication for the Company’s various communication channels. The Company can also conduct necessary investigations while collecting feedback.	-
2-27	Compliance with laws and regulations	Significant non-compliances are dealt in accordance with Taiwan Stock Exchange Corporation Procedures for Verification and Disclosure of Material Information of Companies with Listed Securities Operation and Governance – Corporate Governance - Ethics and regulatory compliance In 2022, TSMC has no significant fines and non-monetary sanctions for non-compliance of environmental area In 2022, TSMC has no significant fines and non-monetary sanctions for non-compliance of social and economic area	-
2-28	Membership associations	Appendix - Participation in Industry Associations and Non-Profit Organizations	224
Stakeholder engagement
2-29	Approach to stakeholder engagement	Sustainable Business Practices- Materiality Analysis and Stakeholder Communication	17
2-30	Collective bargaining agreements	Sustainable Business Practices - An Admired Employer – Human Rights Please refer to 2022 TSMC Annual Report – 5.6.1 Human Rights Policy and Specific Actions	156

3-1	Process to determine material topics	Sustainable Business Practices- Materiality Analysis and Stakeholder Communication	17
3-2	List of material topics	Sustainable Business Practices- Materiality Analysis and Stakeholder Communication	17
3-3	Management of material topics	Sustainable Business Practices- Materiality Analysis and Stakeholder Communication	17

201-1	Direct economic value generated and distributed	Sustainable Business Practices- An Admired Employer- Talent Attraction and Retention- Competitiveness of Total Compensation Sustainable Governance-Sustainable Value Creation Operations and Governance- Financial Performance, Tax Policy Appendix-ESG Performance Summary Please refer to 2022 TSMC annual report (II) Financial Statements for detailed information	146 29 210,212 226
201-2	Financial implications and other risks and opportunities due to climate change	Sustainable Business Practices- A Practitioner of Green Power- Climate and Energy- Identify Climate Risks, Task Force on Climate-related Financial Disclosures (TCFD), Climate Risk Adaptive Actions Standards, Climate and Energy Strategies, Goals, and Outcomes TSMC 2021 TCFD Report	93
201-3	Defined benefit plan obligations and other retirement plans	Sustainable Business Practices- An Admired Employer - Talent Attraction and Retention- Competitiveness of Total Compensation, Employee Benefit System Superior to Statute Please refer to 2022 TSMC Annual Report- 5.6.6 Competitiveness of total compensation	146
201-4	Financial assistance received from government	Financial assistance received from the R.O.C. government- In 2022, TSMC enjoyed a tax benefit of NT$96.4 billion from five-year tax exemption for capital investments made in previous years. Financial assistance received from foreign governments- TSMC received grants of NT$8.9 billion in 2022 for acquisition of property, plant, and equipment, etc.	-

202-1	Ratios of standard entry level wage by gender compared to local minimum wage	Sustainable Business Practices- An Admired Employer -Talent Attraction and Retention- Competitiveness of Total Compensation: According to Article 21 of the Labor Standards Law of the Republic of China, a worker shall be paid such wages as determined through negotiations with the employer, provided, however, that such wages shall not fall below the “basic wage” to ensure the basic living of a worker and maintain his/her purchasing power. The current monthly "basic wage" is NT$25,250. Human rights policy: Provide fair living wage and pay in full and on time with pay slips to state legitimate deductions Please refer to 2022 TSMC Annual Report- 5.6.6 Competitiveness of total compensation	146
202-2	Proportion of senior management hired from the local community	Please refer to 2022 TSMC Annual Report- 2.5.1 Information regarding management team Among the 29 executives in the Management Team, 26 were born in Taiwan or have the legal right to reside indefinitely, accounting for 89.7%	-

203-1

Infrastructure investments and services supported

Sustainable Business Practices- Power to Change Society- TSMC Charity Foundation. Contents including donation, in-kind giving, construction services, repair services, volunteer services, etc.
Sustainable Business Practices- Sustainability Impact

192

29

203-2

Significant indirect economic impacts

In total, TSMC deployed 288 distinct process technology, and manufactured 12,698 products for 532 customers in 2022 to continue to bring significant contribution to the advancement of modern society.
Sustainable Business Practices- Sustainability Impact

-

29

204-1

Proportion of spending on local suppliers

Sustainable Business Practices- A Responsible Purchaser - Promoting Green and Low-carbon Supply Chains- Promoting Constant Upgrade of Local Supply Chain:
Sourced 62.1% of indirect raw materials locally
Sourced 43 % of spare parts locally

88,89

205-1	Operations assessed for risks related to corruption	Operations and Governance- Corporate Governance- Ethics and Regulatory Compliance: TSMC assesses anti-corruption mostly risk by function, and secondary by geographical region since more than 90% of TSMC employees work in Taiwan. Based on the TSMC core value of Integrity, the Company’s anti-corruption risk assessment incorporates applicable regulations, classifies corruption by type, accounts for business operation procedure and specifications, requires full compliance and implementation by all employees, mandates annual self-assessments and examinations, and establishes open reporting channels (internal and external) and whistleblower protection. An objective of TSMC’s anti-corruption risk assessment is to detect abnormal incidents early and effectively prevent the occurrence of corruption. Based on TSMC 2022’s training regimes and awareness campaign, suppliers ethics survey, annual CSA (Control Self-Assessment) Reports received from each division, and a review of the reported anti-corruption incidents from TSMC’s reporting channels and the results of subsequent investigations thereto, the Company’s corruption risk is appropriately controlled and no significant corruption risk was identified. Please refer to 2022 TSMC Annual Report- 3.5 Code of Ethics and Business Conduct, 3.6 Regulatory Compliance	208
205-2	Communication and training about anti-corruption policies and procedures	Operations and Governance- Corporate Governance- Ethics and Regulatory Compliance Integrity is the most important value of TSMC’s culture. TSMC publishes "TSMC Anti-Corruption Commitment" to reiterate that TSMC take a zero-tolerance approach toward corruption, meanwhile elaborating the regulations regarding avoiding conflicts of interest, political and charitable contributions, and whistleblower channel. TSMC provides anti-corruption and ethics training to each new colleague. For the current colleagues, TSMC provides a variety of training courses in the form of face-to-face courses, communication meetings, online compulsory and selective courses, and provides regulatory compliance guidelines and FAQs through posters, emails, and internal news articles to ensure colleagues access to new knowledge of regulations and deepen their knowledge of various issues. In 2022, TSMC provided current colleagues with "Annual Ethics and Compliance Training Course” (mandatory 0.5 hour online course). The completion rate of each operating base is as follows: 99.9% in Taiwan, 100% in Asian regions outside Taiwan (Mainland, Japan, South Korea), 99.9% in North America (U.S., Canada), and 100% in Europe. Please refer to 2022 TSMC Annual Report- 3.2.1 Audit Committee, 3.5 Code of Ethics and Business Conduct, 3.6 Regulatory Compliance	208
205-3	Confirmed incidents of corruption and actions taken	Operations and Governance- Corporate Governance- Ethics and Regulatory Compliance Please refer to 2022 TSMC Annual Report- 3.5 Code of Ethics and Business Conduct	208

206-1

Legal actions for anti-competitive behavior, anti-trust, and monopoly practices

TSMC is not involved in any ongoing investigations related to anti-competitive practices.

-

207-1	Approach to tax	Operations and Governance- Tax Policy	212
207-2	Tax governance, control, and risk management	Operations and Governance- Tax Policy	212
207-3	Stakeholder engagement and management of concerns related to tax	Operations and Governance- Tax Policy	212
207-4	Country-by-country reporting	The Organization for Economic Cooperation and Development (OECD) developed a country-by-country reporting system in which the Taiwan R.O.C. government participate. This reporting process was developed in part to aid tax authorities in their audit selection processes. Under the OECD agreement, this reporting information is kept with tax authorities who have the tax expertise to understand and assess this business-sensitive tax information. TSMC supports the business information provided as part of the country-by-country reporting system remaining exclusively with government tax authorities.	-

302-1	Energy consumption within the organization	Sustainable Business Practices- A Practitioner of Green Power- Climate and Energy - Improve energy efficiency Appendix-ESG Performance Summary	102 226
302-2	Energy consumption outside of the organization	Sustainable Business Practices- A Practitioner of Green Power- Climate and Energy - Greenhouse Gas Inventory (Scope 3)	99
302-3	Energy intensity	Sustainable Business Practices- A Practitioner of Green Power- Climate and Energy - Improve energy efficiency	102
302-4	Reduction of energy consumption	Sustainable Business Practices- A Practitioner of Green Power- Climate and Energy - Improve energy efficiency The energy consumption reduction calculation is based on the difference in energy consumption before and after the implementation of the energy saving projects	102
302-5	Reductions in energy requirements of products and services	Sustainable Business Practices- A Practitioner of Green Power- Climate and Energy - Improve energy efficiency Please refer to 2021 TSMC Annual Report- 7.2.2 Sustainable Products	102

303-1	Interactions with water as a shared resource	Sustainable Business Practices- A Practitioner of Green Power- Risk Management of Water Resources	110
303-2	Management of water discharge-related impacts	Sustainable Business Practices- A Practitioner of Green Power- Develop Preventive Measures	114
303-3	Water withdrawal	Sustainable Business Practices- A Practitioner of Green Power- Risk Management of Water Resources It is necessary to disclose the proportion of the water withdrawal to the total water withdrawal of the water area in the “high” or “extremely high” water stress risk area according to the World Resources Institute (WRI) water stress evaluation. TSMC (China) is a high-risk area of water stress. Its water withdrawal area is the Jinze Reservoir, which supplies 2.56 million tons per day. TSMC (China) uses 0.8 million tons of water per day, accounting for 0.3% of its water withdrawal area.	110
303-4	Water discharge	Sustainable Business Practices- A Practitioner of Green Power- Risk Management of Water Resources	110
303-5	Water consumption	Sustainable Business Practices- A Practitioner of Green Power- Risk Management of Water Resources	110

305-1	Direct (Scope 1) GHG emissions	Appendix- ESG Performance Summary (A Practitioner of Green Power) Sustainable Business Practices- A Practitioner of Green Power- Climate and Energy - Drive Low-Carbon Manufacturing- Scope 1 GHG Emissions: The Greenhouse Gas Inventory used the Global Warming Potential (GWP) for the IPCC AR5 report, and the emissions from biogenic sources is 1842.188 metric tons of CO₂e.	228 97
305-2	Energy indirect (Scope 2) GHG emissions	Appendix- ESG Performance Summary (A Practitioner of Green Power)	228
305-3	Other indirect (Scope 3) GHG emissions	Appendix- ESG Performance Summary (A Practitioner of Green Power)	228
305-4	GHG emissions intensity	Appendix- ESG Performance Summary (A Practitioner of Green Power)	228
305-5	Reduction of GHG emissions	Sustainable Business Practices- A Practitioner of Green Power- Climate and Energy - Best Mitigation Results in the Industry, Use Renewable Energy	93
305-6	Emissions of ozone-depleting substances (ODS)	TSMC doesn't use Motreal Protocol restricted ODS.	-
305-7	Nitrogen oxides (NO_X), sulfur oxides (SO_X), and other significant air emissions	Sustainable Business Practices- A Practitioner of Green Power- Air Pollution Control Emissions in 2022: NO_X- 159.87 metric tons; SO_X- 37.78 metric tons	126

306-1	Waste generation and significant waste-related impacts	Sustainable Business Practices- A Practitioner of Green Power- Recycling Resources	116
306-2	Management of significant waste-related impacts	Sustainable Business Practices- A Practitioner of Green Power- Recycling Resources	116
306-3	Waste generated	Sustainable Business Practices- A Practitioner of Green Power- Recycling Resources	116
306-4	Waste diverted from disposal	Sustainable Business Practices- A Practitioner of Green Power- Recycling Resources	116
306-5	Waste directed to disposal	Sustainable Business Practices- A Practitioner of Green Power- Recycling Resources	116

308-1	New suppliers that were screened using environmental criteria	Sustainable Business Practices- A Responsible Purchaser- Supplier Sustainability Management - 2022 Goals and Achievements: 100% new suppliers compliant and signed TSMC Supplier Code of Conduct	75
308-2	Negative environmental impacts in the supply chain and actions taken	Sustainable Business Practices- A Responsible Purchaser- Improving Sustainability Risk Management: TSMC requires suppliers to meet the sustainability standards through TSMC Supplier Code of Conduct, which includes environmental impact issues, and requires Tier 1 suppliers to implement self-assessment questionnaire (SAQ). According to the questionnaire, a total of 1,230 questionnaires were collected in the 2022. If the supplier has potential risks, it will be continuously to request improvement.	75

401-1	New employee hires and employee turnover	Sustainable Business Practices- An Admired Employer -Talent Attraction and Retention: Strong talent pool, maintain health turnover rate Please refer to 2022 TSMC Annual Report- 5.6.10 Retention Number of new employees in the past five years-An Admired Employer – Talent Attraction and Retention – New hires	148
401-2	Benefits provided to full-time employees that are not provided to temporary or part-time employees	Sustainable Business Practices- An Admired Employer -Talent attraction and retention- Competitiveness of total compensation, Exceed the statutory requirements of benefit program Please refer to 2022 TSMC Annual Report – 5.6.6 Competitiveness of total compensation	146
401-3	Parental leave	Sustainable Business Practices- An Admired Employer -Talent attraction and retention- Parental Benefits	147

402-1

Minimum notice periods regarding operational changes

Sustainable Business Practices- An Admired Employer - Human Rights- Internal Communication Channels for Employees.
The company has major issues and changes will be announced in quarterly meetings. Hold a "labor-management meeting" every quarter, and also hold a "temporary labor-management meeting" when necessary for real-time communication.
If the employment relationship with some employees needs to be terminated due to major operational changes, the Company will notify employees in advance abide by the law.

156

403-1	Occupational health and safety management system	In 2022, there were 3 new factories, namely the Fab 18A phase 7, Fab 18B phase 6 and 8. They plan to obtain ISO 45001 Occupational Safety and Health management system certification in 2023. The remaining existing factories and subsidiaries TSMC (China), TSMC (Nanjing), WaferTech and VisEra have set up safety and health organizations and personnel in accordance with Article 1-1 of the Occupational Safety and Health Management Rules, and established an occupational safety and health management system, achieved safety and health management goals, uplifted safety and health management performances, and passed ISO 45001 certification. Corporate Level Safety and Health Committee is hosted by Corporate ESH Director. The Committee meeting is held by quarterly, and percentage of total workforce represented is 46%.	-
403-2	Hazard identification, risk assessment, and incident investigation	Sustainable Business Practices- An Admired Employer- Occupational Safety and Health - Promote Safety Culture: Explain risk identification and assessment practices in safety and health implementing items, and add encouraging employees to take the initiative to report unsafe environments or behaviors as a safety performance indicator. Those who take the initiative to report will be rewarded and will not be punished. It is clearly stipulated in the safety work code that employees should perform their duties in accordance with the safety work code. When they find that there is a potential of immediate danger, they can stop their work and retreat to a safe place without endangering the safety of other workers, and then report to their supervisor immediately.	163
403-3	Occupational health services	Sustainable Business Practices- An Admired Employer- Occupational Safety and Health - Comprehensive Health Management	172
403-4	Worker participation, consultation, and communication on occupational health and safety	Sustainable Business Practices- An Admired Employer- Occupational Safety and Health - Promote Safety Culture - Safety and Health Measures: Corporate Level Safety and Health Committee is hosted by Corporate ESH Director, the Committee meeting is held by quarterly, reviewing, coordinating and promoting company-wide safety and health tasks, each unit with environment, safety and health related function shall participate the meeting to report the implementation status of environment, safety and health-related tasks within the unit. In addition, the percentage of total workforce represented is 46%. They can require the Company’s various units to report implementation status of ESH work, while coordinate, review and communicate the works.	-
403-5	Worker training on occupational health and safety	Sustainable Business Practices- An Admired Employer- Occupational Safety and Health - Comprehensive Health Management	166
403-6	Promotion of worker health	Sustainable Business Practices- An Admired Employer- Occupational Safety and Health - Promote Safety Culture - Health Care	172
403-7	Prevention and mitigation of occupational health and safety impacts directly linked by business relationships	Sustainable Business Practices- An Admired Employer- Occupational Safety and Health- Comprehensive Health Management, Internal-External Alliance	172, 177
403-8	Workers covered by an occupational health and safety management system	Workers include the scope of employees and contractors. Management system, internal and external audit cover a total of 26 factories in domestic, abroad and subsidiaries. In 2022, there were 3 new factories, namely the Fab 18A phase 7, Fab 18B phase 6 and 7. They plan to obtain ISO 45001 Occupational Safety and Health management system certification in 2023. The remaining 23 existing factories and subsidiaries TSMC (China), TSMC (Nanjing), WaferTech and VisEra have obtained ISO 45001 certification. The total certification rate of management system is 89.6%.	-
403-9	Work-related injuries	Sustainable Business Practices- An Admired Employer- Occupational Safety and Health - Promote Safety Culture, Work with External Parties to Optimize Work Environment	163
403-10	Work-related ill health	Sustainable Business Practices- An Admired Employer- Occupational Safety and Health - Promote Safety Culture - Occupational Disease Prevention Related Measures and Performances	175

404-1	Average hours of training per year per employee	Sustainable Business Practices- An Admired Employer - Talent Development	149
404-2	Programs for upgrading employee skills and transition assistance programs	Sustainable Business Practices- An Admired Employer - Talent Development: Although it does not provide transition assistance programs for "employees who have ended their careers due to retirement or termination of employment relationships," the company's "talent development" goals have always been focused on ensuring that employees can keep up with the times to support the company Long-term growth and meeting the needs of employees for lifelong learning. If employees who are leaving the company have individual needs, they can also get professional counseling services in psychological, legal and financial aspects through "Consultation and Consultation."	149
404-3	Percentage of employees receiving regular performance and career development reviews	Sustainable Business Practices- An Admired Employer - Talent Development Based on "TSMC Capability Model" as the basis for talent development, from "experience learning (70%)," "feedback and guidance (20%)" and "education and training (10%)" provide the specific developmental needs required by employees. One of the aspects of "feedback and guidance" is for all supervisors and employees to regularly implement mid-year and year-end performance feedback and discussions; "education and training" is also implemented according to the "personal development plan."	149

405-1	Diversity of governance bodies and employees	Operations and Governance- Corporate Governance- Board of Directors and Committees Please refer to 2022 TSMC Annual Report- 2.4.1 Information Regarding Board Members, 3.2 Board of Directors: TSMC’s Board is comprised of a diverse group of professionals from different backgrounds in industries, academia, law, etc. These professionals include citizens from Taiwan, Europe and the U.S. with world-class business operating experience, one of whom is female (the ratio is 10%).	205
405-2	Ratio of basic salary and remuneration of women to men	Sustainable Business Practices- An Admired Employer - Diversity and inclusion- The Ratio of total compensation between Male and Female	139

406-1

Incidents of discrimination and corrective actions taken

Sustainable Business Practices- An Admired Employer - Human Rights

156

407-1

Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk

Sustainable Business Practices- An Admired Employer - Human Rights:
The company respects the right of employees to freedom of association and collective bargaining, and regularly holds labor-management meetings to promote harmonious employee relations
Sustainable Business Practices- A Responsible Purchaser- Improving Sustainability Risk Management:
TSMC requires suppliers to meet the sustainability standards through TSMC Supplier Code of Conduct, which includes no child labor policy, and requires Tier 1 suppliers to implement self-assessment questionnaire(SAQ). According to the questionnaire, a total of 1,230 questionnaires were collected in the 2022. If the supplier has potential risks, it will be continuously to request improvement.

156

408-1

Operations and suppliers at significant risk for incidents of child labor

Sustainable Business Practices- An Admired Employer - Human Rights: The risk of using child labor at the company is quite low
Sustainable Business Practices- A Responsible Purchaser- Improving Sustainability Risk Management:
TSMC requires suppliers to meet the sustainability standards through TSMC Supplier Code of Conduct, which includes no child labor policy, and requires Tier 1 suppliers to implement self-assessment questionnaire(SAQ). According to the questionnaire, a total of 1,230 questionnaires were collected in the 2022. If the supplier has potential risks, it will be continuously to request improvement.

156

78

409-1

Operations and suppliers at significant risk for incidents of forced or compulsory labor

Sustainable Business Practices- An Admired Employer - Human Rights:
The risk of forced and compulsory labor incidents occurring in the company is quite low
A Responsible Purchaser- Improving Sustainability Risk Management:
TSMC requires suppliers to meet the sustainability standards through TSMC Supplier Code of Conduct, which includes no bonded labor policy, and requires Tier 1 suppliers to implement self-assessment questionnaire(SAQ). According to the questionnaire, a total of 1,230 questionnaires were collected in 2022. If the supplier has potential risks, it will be continuously to request improvement.

156

78

412-1	Operations that have been subject to human rights reviews or impact assessments	Sustainable Business Practices- An Admired Employer - Human Rights: The company adopts the Self-Assessment Questionnaires (SAQ) designed by RBA every year to identify the four aspects of the highest "labor, health and safety, environment, and ethics" in the business of substantial behavior, risk and management system. The SAQ self-scoring scores of all Taiwan factories reached 88 points or more, which met the "low risk" range in 2022.	156
412-2	Employee training on human rights policies or procedures	Sustainable Business Practices- An Admired Employer - Human Rights- Implement the –“Human Rights Policy”, Human rights protection training	156

414-1	New suppliers that were screened using social criteria	Sustainable Business Practices- A Responsible Purchaser- Improving Sustainability Risk Management: 100% new suppliers have signed "TSMC Supplier Code of Conduct" and conducted risk assessment	78
414-2	Negative social impacts in the supply chain and actions taken	Sustainable Business Practices- A Responsible Purchaser- Improving Sustainability Risk Management: TSMC take actions to supplier employees working in TSMC's factory area in Taiwan, through reminders, audits, contracts and penalties related actions to guard aspects such as working hours/safety/labor.	78

416-1	Assessment of the health and safety impacts of product and service categories	There is no significant health and safety impacts for the products and services that TSMC provided to customers.	-
416-2	Incidents of non-compliance concerning the health and safety impacts of products and services	Not applicable	-

418-1

Substantiated complaints concerning breaches of customer privacy and losses of customer data

Sustainable Business Practices- Customer Relationship Management - customer's Virtual Fab (no customer complains in information leakage)

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Global Reporting Initiative Index

GRI 2: General Disclosure 2021

GRI 3: Material Topic Disclosure 2021

GRI 201 : Economic Performance

GRI 202 : Market Presence

GRI 203 : Indirect Economic Impacts

GRI 204 : Procurement Practices

GRI 205 : Anti-corruption

GRI 206 : Anti-competitive Behavior

GRI 207 : Tax

GRI 302 : Energy

GRI 303 : Water

GRI 305 : Emissions

GRI 306 : Effluents and Waste

GRI 308 : Supplier Environmental Assessment

GRI 401 : Employment

GRI 402 : Labor/Management Relations

GRI 403 : Occupational Health and Safety

GRI 404 : Training and Education

GRI 405 : Diversity and Equal Opportunity

GRI 406 : Non-discrimination

GRI 407 : Freedom of Association and Collective Bargaining

GRI 408 : Child Labor

GRI 409 : Forced or Compulsory Labor

GRI 412 : Human Rights Assessment

GRI 414 : Supplier Social Assessment

GRI 416 : Customer Health and Safety

GRI 418 : Customer Privacy