Disclosure Number |
Disclosure Title |
Report Contents or Explanation |
Page |
---|---|---|---|
102-1 |
Name of the organization |
About TSMC |
|
102-2 |
Activities, brands, products, and services |
About TSMC |
|
102-3 |
Location of headquarters |
About TSMC |
|
102-4 |
Location of operations |
About TSMC |
|
102-5 |
Ownership and legal form |
About TSMC; Please refer to 2020 TSMC Annual Report (II) Financial Statements |
|
102-6 |
Markets served |
About TSMC |
|
102-7 |
Scale of the organization |
About TSMC; Please refer to 2020 TSMC Annual Report (II) Financial Statements |
|
102-8 |
Information on employees and other workers |
An Admired Employer: Talent Attraction and Retention - Shared Visions and Values- Workforce Structure |
|
102-9 |
Supply chain |
A Responsible Purchaser: Supplier Sustainability Management - Sustainability Risk Management/Local Procurement Optimization |
|
102-10 |
Significant changes to the organization and its supply chain |
About TSMC; Please refer to 2020 TSMC Annual Report (II) Financial Statements A Responsible Purchaser: Supplier Sustainability Management |
|
102-11 |
Precautionary Principle or approach |
The risk management organization regularly briefs the audit committee on the ever-changing risk environment facing TSMC, the focus of the Company’s enterprise risk management, and risk assessment and mitigation efforts. The audit committee’s chairperson also reports on the risk environment and risk mitigation actions to be taken. TSMC and its subsidiaries are committed to proactively and cost effectively integrating and managing strategic, operational, financial and hazardous risks together with potential consequences to operations and financial results. TSMC operates an enterprise risk management (ERM) program and apply a risk map considering likelihood and impact severity to identify and prioritize corporate risks. Various risk treatment strategies are also adopted in response corporate risks as they are identified. Refer section 6.3 Risk Management of 2020 TSMC Annual Report for details of implementation of ERM (Eneterprise Risk Management) |
- |
102-12 |
External initiatives |
Responsible Business Alliance (RBA, the previous EICC) and Responsible Minerals Assurance Process (RMAP, the previous Conflict-free Smelter Program); Participated in RE100; TCFD (Task Force on Climate-related Financial Disclosures) Supporter, committed to evaluating and publicly disclosing climate change risks and opportunities |
- |
102-13 |
Membership of associations |
Appendix: Participation in Industry Associations and Non-profit Organizations |
|
102-14 |
Statement from senior decision-maker |
Sustainable Business Practices: ESG Implementation Framework, ESG Management Platform |
|
102-15 |
Key impacts, risks, and opportunities |
Sustainable Business Practices: Materiality Analysis and Stakeholder Communication |
|
102-16 |
Values, principles, standards, and norms of behavior |
Operations and Governance: Corporate Governance-Ethics and Regulatory Compliance Please refer to 2020 TSMC Annual Report: |
|
102-17 |
Mechanisms for advice and concerns about ethics |
Operations and Governance: Corporate Governance-Ethics and Regulatory Compliance Please refer to 2020 TSMC Annual Report: |
|
102-18 |
Governance structure |
Sustainable Business Practices: ESG Management Platform Please refer to 2020 TSMC Annual Report: |
|
102-19 |
Delegating authority |
Sustainable Business Practices: ESG Management Platform |
|
102-20 |
Executive-level responsibility for economic, environmental, and social topics |
Letter from the ESG Steering Committee Chairperson; Letter from the ESG Committee Chairperson |
|
102-21 |
Consulting stakeholders on economic, environmental, and social topics |
Sustainable Business Practices: Materiality Analysis and Stakeholder Communication Please refer to 2020 TSMC Annual Report: |
|
102-22 |
Composition of the highest governance body and its committees |
Operations and Governance: Corporate Governance Please refer to 2020 TSMC Annual Report: |
|
102-23 |
Chair of the highest governance body |
The Chair of the highest governance body is not an executive officer |
- |
102-24 |
Nominating and selecting the highest governance body |
In 2019, TSMC established “Guidelines for Nomination of Directors”, which describes the procedures and criteria for the nomination, qualification and evaluation of candidates for Directors. Please refer to our website. TSMC envisions the membership of its esteemed Board of Directors to be composed of highly ethical professionals with the necessary knowledge, experience and understanding from diverse backgrounds. TSMC envisions its Board to be composed of as many independent directors as possible, and the independence of each independent director candidate is also considered and assessed under relevant laws. Therefore, TSMC composes its Board with world-class candidates who are/were international or local business leaders in the high-tech industry, prestigious academics or other professionals excelling in their chosen field of expertise. All of them have management experience and competency in economic, environmental and social topics. Directors shall be elected pursuant to the candidate nomination system specified in Article 192-1 of the R.O.C. Company Law. The tenure of office for Directors shall be three years. The independence of each independent director candidate is also considered and assessed under relevant law such as the Taiwan “Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies”. Under R.O.C. law, in which TSMC was incorporated, any shareholders holding one percent or more of our total outstanding common shares may nominate their own candidate to stand for election as a Board member. This democratic mechanism allows our shareholders to become involved in the selection and nomination process of Board candidates. The final slate of candidates is put to the shareholders for voting at the relevant annual shareholders' meeting. There are no limits on the number of terms that a director may serve. We believe the Company benefits from the contributions of directors who have over their years of dedicated service acquired unique insights into the operations and financial developments of the Company. The Company reviews the appropriateness of each director’s continued service to ensure there are new viewpoints available to the Board. |
- |
102-25 |
Conflicts of interest |
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 2020 TSMC Annual Report: |
- |
102-26 |
Role of highest governance body in setting purpose, values, and strategy |
Sustainable Business Practices: ESG Implementation Framework, ESG Management Platform |
|
102-27 |
Collective knowledge of highest governance body |
Please refer to 2020 TSMC Annual Report: Quarterly management reports and semi-annual CSR reports develop and enhance the Board of Directors' collective knowledge of economic, environmental and social topics. |
- |
102-28 |
Evaluating the highest governance body's performance |
Operations and Governance: Corporate Governance-Board of Directors and Committees-Board and Audit Committee Performance Evaluations Please refer to 2020 TSMC Annual Report: 3.1 Corporate Governanc/2020 Corporate Governance Awards and Ratings |
|
102-29 |
Identifying and managing economic, environmental, and social impacts |
Please refer to 2020 TSMC Annual Report:
3.4 Taiwan Corporate Governance Implementation as Required by Taiwan Financial Supervisory Commission/Assessment Item 5 6.3 Risk Management 7 Corporate Social Responsibility/ESG Management/Stakeholder Engagement |
- |
102-30 |
Effectiveness of risk management processes |
Please refer to 2020 TSMC Annual Report |
- |
102-31 |
Review of economic, environmental, and social topics |
Operations and Governance: Corporate Governance-Board of Directors and Committees |
|
102-32 |
Highest governance body's role in sustainability reporting |
Please refer to 2020 TSMC Annual Report: |
- |
102-33 |
Communicating critical concerns |
In addition to holding regular meetings, TSMC management will regularly provide to the Board of Directors material company reports and information:
In addition, the Board maintains a regular line of communication with TSMC management, which will remain open if an event of critical concerns occurs. Please refer to 2020 TSMC Annual Report: |
- |
102-34 |
Nature and total number of critical concerns |
Please refer to the material information the Company has disclosed on Market Observation Post System (MOPS), which indicates the total number and nature of critical concerns. Please refer to 2020 TSMC Annual Report: |
- |
102-35 |
Remuneration policies |
Please refer to 2020 TSMC Annual Report :The extent and value of the services provided for the management of the Corporation and operating performance includes objectives for economic, environmental, and social topics. |
|
102-36 |
Process for determining remuneration |
An Admired Employer: Talent Attraction and Retention-Competitive Compensation Package Please refer to 2020 TSMC Annual Report : |
|
102-37 |
Stakeholders' involvement in remuneration |
Please refer to 2020 TSMC Annual Report4.1.12 Compensation to Directors and Profit Sharing to Employees |
- |
102-38 |
Annual total compensation ratio |
An Admired Employer: Talent Attraction and Retention-Competitive Compensation Package |
|
102-39 |
Percentage increase in annual total compensation ratio |
An Admired Employer: Talent Attraction and Retention-Competitive Compensation Package |
|
102-40 |
List of stakeholder groups |
Sustainable Business Practices: Materiality Analysis and Stakeholder Communication |
|
102-41 |
Collective bargaining agreements |
An Admired Employer: Human Rights-Employee Engagement TSMC values employee opinions/interests and therefore offers several communication channels. The highest-level executives of the HR organization are responsible for many of the channels, ensuring that matters are handled in an efficient and confidential manner as we continue to strive towards an open and transparent environment for employees/managers and colleagues to communicate. Furthermore, TSMC respects employees' right to take part in collective bargaining and peaceful rallies. In accordance with legal requirements in Taiwan, the Company regularly holds labor-management meetings to brief employees on Company operations and invite employees to engage in discussions on labor conditions and benefits. |
|
102-42 |
Identifying and selecting stakeholders |
Sustainable Business Practices: Materiality Analysis and Stakeholder Communication |
|
102-43 |
Approach to stakeholder engagement |
Sustainable Business Practices: Materiality Analysis and Stakeholder Communication |
|
102-44 |
Key topics and concerns raised |
Sustainable Business Practices: Materiality Analysis and Stakeholder Communication |
|
102-45 |
Entities included in the consolidated financial statements |
About TSMC; Please refer to 2020 TSMC Annual Report (II) Financial Statements |
|
102-46 |
Defining report content and topic Boundaries |
Sustainable Business Practices: Materiality Analysis and Stakeholder Communication |
|
102-47 |
List of material topics |
Sustainable Business Practices: Materiality Analysis and Stakeholder Communication |
|
102-48 |
Restatements of information |
TSMC's production is primarly measured in 12-inch wafers. The unit product indicators mentioned in the "A Practitioner of Green Power" are calculated based on 12-inch equivalent wafers. |
- |
102-49 |
Changes in reporting |
Appendix: About This Report |
|
102-50 |
Reporting period |
Appendix: About This Report |
|
102-51 |
Date of most recent report |
June, 2020 |
|
102-52 |
Reporting cycle |
Appendix: About This Report |
|
102-53 |
Contact point for questions regarding the report |
Appendix: About This Report |
|
102-54 |
Claims of reporting in accordance with the GRI Standards |
Appendix: About This Report |
|
102-55 |
GRI content index |
Appendix: GRI Standards Comparison Table |
|
102-56 |
External assurance |
Appendix: Independent Third Party Assurance Statement |
103-1 |
Explanation of the material topic and its Boundary |
Sustainable Business Practices: Materiality Analysis and Stakeholder Communication |
|
103-2 |
The management approach and its components |
Please refer to the contents of related topics |
- |
103-3 |
Evaluation of the management approach |
Please refer to the contents of related topics |
- |
201-1 |
Direct economic value generated and distributed |
Sustainable Business Practices: Sustainability Impact |
|
201-2 |
Financial implications and other risks and opportunities due to climate change |
A Practitioner of Green Power: Climate Change and Energy Management-Climate Risks Identification, Climate Risks Matrix, Climate Financial Risk Analysis |
|
201-3 |
Defined benefit plan obligations and other retirement plans |
An Admired Employer: Talent Attraction and Retention-Compensation and Benefits-Solid Pension System -Pension Allocation and Preparation |
|
201-4 |
Financial assistance received from government |
Financial assistance received from the R.O.C. government: In 2020, TSMC enjoyed a tax benefit of NT$47.1 billion from five-year tax exemption for capital investments made in previous years. (Our wafer fabs in China received subsidies from the local government, but according to the agreement, TSMC can not disclose the content and amount.) |
- |
202-1 |
Ratios of standard entry level wage by gender compared to local minimum wage |
An Admired Employer: Talent Attraction and Retention - Compensation and Benefits - Competitive Compensation Package |
|
202-2 |
Proportion of senior management hired from the local community |
In the 2020 TSMC Annual Report, 2.5.1 Information Regarding Management Team, we disclosed that 19 out of 25 members of the management team are local, accounting for 76.0%. |
- |
203-1 |
Infrastructure investments and services supported |
Power to Change Society: TSMC Charity Foundation. Contents including donation, in-kind giving, construction services, repair services, volunteers services, etc. |
|
203-2 |
Significant indirect economic impacts |
In total, TSMC deployed 281 distinct process technologies, and manufactured 11,617 products for 510 customers in 2020 to continue to bring significant contribution to the advancement of modern society. |
- |
204-1 |
Proportion of spending on local suppliers |
A Responsible Purchaser: Local Procurement Optimization |
205-1 |
Operations assessed for risks related to corruption |
Operations and Governance: Corporate Governance-Ethics and Regulatory Compliance Please refer to 2020 TSMC Annual Report: |
|
205-2 |
Communication and training about anti-corruption policies and procedures |
Operations and Governance: Corporate Governance-Ethics and Regulatory Compliance Please refer to 2020 TSMC Annual Report: |
|
205-3 |
Confirmed incidents of corruption and actions taken |
Operations and Governance: Corporate Governance-Ethics and Regulatory Compliance Please refer to 2020 TSMC Annual Report: |
206-1 |
Legal actions for anti-competitive behavior, anti-trust, and monopoly practices |
Please refer to 2020 TSMC Annual Report: |
- |
207-1 |
Approach to tax |
Operations and Governance: Tax Policy |
|
207-2 |
Tax governance, control, and risk management |
Operations and Governance: Tax Policy |
|
207-3 |
Stakeholder engagement and management of concerns related to tax |
Operations and Governance: Tax Policy |
|
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 participates. 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 |
Appendix: ESG Performance Summary (Environmental Dimension) |
|
302-2 |
Energy consumption outside of the organization |
A Practitioner of Green Power: Climate Change and Energy Management - GHG Emissions Inventory |
|
302-3 |
Energy intensity |
Appendix: ESG Performance Summary (Environmental Dimension) |
|
302-4 |
Reduction of energy consumption |
A Practitioner of Green Power: Climate Change and Energy Management-Increase Energy Efficiency |
|
302-5 |
Reductions in energy requirements of products and services |
A Practitioner of Green Power: Climate Change and Energy Management - Increase Energy Efficiency |
303-1 |
Interactions with water as a shared resource |
A Practitioner of Green Power: Water Management-Risk Management of Water Resources |
|
303-2 |
Management of water discharge-related impacts |
A Practitioner of Green Power: Water Management-Develop Preventive Measures |
|
303-3 |
Water discharge |
A Practitioner of Green Power: Water Management-Risk Management of Water Resources |
|
303-4 |
Water withdrawal |
A Practitioner of Green Power: Water Management-Risk Management of Water Resources |
|
303-5 |
Water consumption |
A Practitioner of Green Power: Water Management-Risk Management of Water Resources |
305-1 |
Direct (Scope 1) GHG emissions |
Appendix: ESG Performance Summary (Environmental Dimension) |
|
305-2 |
Energy indirect (Scope 2) GHG emissions |
Appendix: ESG Performance Summary (Environmental Dimension) |
|
305-3 |
Other indirect (Scope 3) GHG emissions |
Appendix: ESG Performance Summary (Environmental Dimension) |
|
305-4 |
GHG emissions intensity |
Appendix: ESG Performance Summary (Environmental Dimension) |
|
305-5 |
Reduction of GHG emissions |
A Practitioner of Green Power: Climate Change and Energy Management-GHG Reduction Best Practices, GHG Emissions Inventory |
|
305-6 |
Emissions of ozone-depleting substances (ODS) |
TSMC does not use Motreal Protocol restricted ODS. |
- |
305-7 |
Nitrogen oxides (NOX), sulfur oxides (SOX), and other significant air emissions |
A Practitioner of Green Power: Air Pollution Control |
306-1 |
Waste generation and significant waste-related impacts |
A Practitioner of Green Power: Waste Management |
|
306-2 |
Management of significant waste-related impacts |
A Practitioner of Green Power: Waste Management |
|
306-3 |
Significant spills |
Waste generated |
|
306-4 |
Transport of hazardous waste |
Waste diverted from disposal |
|
306-5 |
Disclosure 306-5 Waste directed to disposal |
A Practitioner of Green Power: Waste Management |
307-1 |
Non-compliance with environmental laws and regulations |
Company has no significant fines and non-monetary sanctions for non-compliance of environmental laws and regulations 2020. |
- |
308-1 |
New suppliers that were screened using environmental criteria |
A Responsible Purchaser: Supplier Sustainability Management-2020 Goals and Achievements |
|
308-2 |
Negative environmental impacts in the supply chain and actions taken |
A Responsible Purchaser: Supplier Sustainability Management - Sustainability Risk Management |
401-1 |
New employee hires and employee turnover |
An Admired Employer: Talent Attraction and Retention - Shared Visions and Values - Talent Recruitment - Campus Recruitment |
|
401-2 |
Benefits provided to full-time employees that are not provided to temporary or part-time employees |
An Admired Employer: Talent Attraction and Retention-Compensation and Benefits-Benefits Better Than Statutory Regulations |
|
401-3 |
Parental leave |
An Admired Employer: Talent Attraction and Retention-Compensation and Benefits-Parental Benefits |
402-1 |
Minimum notice periods regarding operational changes |
An Admired Employer: Human Rights-Employee Engagement |
403-1 |
Occupational safety and health management system |
In order to implement occupational safety and health management and control, TSMC established an executive organization with the division of roles and responsibilities. In response to the requirements and expectations of TSMC from internal and external stakeholders, in 2020, in addition to continuing to improve the existing safety culture promotion and risk management measures and in response to expansion plans, the number of contractors entering TSMC has reached 39,470 people per day. TSMC has standardized contractor operational safety and health management procedures, established the "Contractor Environmental Safety and Health Blue Book", strengthened the safety management system, and cooperated with contractors to create a safe and friendly environment. The corporate-level Safety and Health Committee is hosted by the Corporate ESH Director, percentage of total workforce represented is 44%. |
- |
403-2 |
Hazard identification, risk assessment, and incident investigation |
An Admired Employer: Occupational Safety and Health - Promote Safety Culture - Statistics on Disabling Injuries |
|
403-3 |
Occupational health services |
TSMC's occupational health risk management plan covers both occupational hazards (Including the five major hazards: chemical, physical, ergonomic, social/ psychological, and biological) and personal health (including pregnancy, poor cerebrovascular/ cardiovascular functions, muscle and bones, stress management, etc.), which need to be improved to protect employees’ health. In accordance with legal regulations on occupational safety and health, all employees involved in operations with special health examination, a total of 4,753 individuals, completed 100% special health examinations. |
- |
403-4 |
Worker participation, consultation, and communication on occupational safety and health |
An Admired Employer: Occupational Safety and Health-Promote Safety Culture-Safety and Health Measures |
|
403-5 |
Worker training on occupational health and safety |
An Admired Employer: Occupational Safety and Health-Promote Safety Culture-Safety and Health Measures |
|
403-6 |
Promotion of worker health |
An Admired Employer: Occupational Safety and Health-Comprehensive Health Management-Health Care |
|
403-7 |
Prevention and mitigation of occupational safety and health impacts directly linked by business relationships |
An Admired Employer: Occupational Safety and Health-Comprehensive Health Management-Occupational Disease Prevention |
|
403-8 |
Workers covered by an occupational safety and health management system |
Workers include the scope of employees and contractors |
- |
403-9 |
Work-related injuries |
An Admired Employer: Occupational Safety and Health-Promote Safety Culture-Statistics on Disabling Injuries |
|
403-10 |
Work-related ill health |
An Admired Employer: Occupational Safety and Health -Comprehensive Health Management-Prevention Measures & Achievements against Occupational Diseases |
404-1 |
Average hours of training per year per employee |
An Admired Employer: Talent Development-Fulfill Talent Development-Diverse and Equal Opportunities for Learning and Development |
|
404-2 |
Programs for upgrading employee skills and transition assistance programs |
An Admired Employer: Talent Development-Fulfill Talent Development |
|
404-3 |
Percentage of employees receiving regular performance and career development reviews |
An Admired Employer: Talent Development-Fulfill Talent Development-Diverse and Equal Opportunities for Learning and Development |
405-1 |
Diversity of governance bodies and employees |
Operations and Governance: Corporate Governance-Board of Directors and Committees Please refer to 2020 TSMC Annual Report: |
|
405-2 |
Ratio of basic salary and remuneration of women to men |
An Admired Employer: Talent Attraction and Retention - Workforce Structure - TSMC Compensation Ratio by Gender |
406-1 |
Incidents of discrimination and corrective actions taken |
An Admired Employer: Human Rights |
407-1 |
Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk |
An Admired Employer: Human Rights |
408-1 |
Operations and suppliers at significant risk for incidents of child labor |
TSMC abides by local laws and regulations, and take actions according to TSMC Human Rights Policy and Responsible Business Alliance Code of Conduct. We treat all workers, including regular, contract, and temporary employees, and interns, with dignity and respect, and reduce every kind of risk to protect our employees. More details on TSMC Human Rights Policy |
409-1 |
Operations and suppliers at significant risk for incidents of forced or compulsory labor |
An Admired Employer: Human Rights |
412-1 |
Operations that have been subject to human rights reviews or impact assessments |
An Admired Employer: Human Rights-Human Rights Governance-Human Rights Risk Management |
|
412-2 |
Employee training on human rights policies or procedures |
An Admired Employer: Human Rights-Human Rights Governance |
|
412-3 |
Significant investment agreements and contracts that include human rights clauses or that underwent Human Rights screening |
In 2020, TSMC continued to construct new facilities in Taiwan. Taiwan has a high evaluation of international human rights appraisal, and has no significant issues on this topic. |
- |
414-1 |
New suppliers that were screened using social criteria |
A Responsible Purchaser: Supplier Sustainability Management - 2020 Goals and Achievements |
|
414-2 |
Negative social impacts in the supply chain and actions taken |
A Responsible Purchaser: Supplier Sustainability Management - Sustainability Risk Management |
416-1 |
Assessment of the health and safety impacts of product and service categories |
There is no significant safety and health 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 |
An Innovation Pioneer: Customer Service-customer's Virtual Fab (no customer complaints regarding information leakage) |
419-1 |
Non-compliance with laws and regulations in the social and economic area |
Company has no significant fines and non-monetary sanctions for non-compliance in social and economic areas in 2020 |
- |
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Independent Assurance Statement |