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1、TWSE:3711NYSE:ASX2023 ASE HOLDINGS Sustainability Report2 2 3ASE HOLDINGSSustainabilityReport Low CarbonCircularInclusiveCollaborativeAs a leading provider of semiconductor packaging and test,ASE Technology Holding Co.,Ltd.and its subsidiaries(collectively ASEH)are fully committed to growing their c
2、ore business and strengthening research and development.The company advances its corporate sustainability strategy through a framework of four pillars:Low Carbon,Circular,Inclusive and Collaborative.In 2023,ASEH continued its transformation in sustainable development and smart manufacturing by integ
3、rating a range of Industry 4.0 advanced technologies and artificial intelligence(AI)into its operations.Additionally,ASEH conducted comprehensive nature-related risk assessments for its major facilities worldwide.The TNFD-LEAP method was used to assess the companys dependence on natural resources,as
4、 well as the associated impacts,risks,and opportunities.ASEH also organized social innovation competitions to create models for collaboration with startup teams.Championing a people-centric philosophy,ASEH demonstrated its commitment to workplace safety by publishing the“White Paper on Packaging and
5、 Testing Machine Safety”,a first for the semiconductor packaging and testing industry.To fulfill our ESG responsibilities and establish a positive influence,we will continue to form meaningful partnerships to protect this earth and pursue Net Zero goals in alignment with industry and social trends.A
6、SEH strongly believes in“Embracing Green Energy and Protecting the Future”.Environmental sustainability is a shared goal for businesses worldwide.As a leading provider of semiconductor packaging and test,ASEH remains steadfast in its dedication to green power,low-carbon energy transformation,and sma
7、rt management,aiming to create a resilient and green circular value chain for a more sustainable planet.Committed to a Win-Win Sustainable Future2OPERATING MODELSUSTAINABLEGOVERNANCEINTEGRITY AND ACCOUNTABILITYINNOVATION SERVICEGREEN MANUFACTURING AND LOW-CARBON TRANSFORMATIONINCLUSIVE WORKPLACERESP
8、ONSIBLE PROCUREMENTCORPORATE CITIZENSHIPAPPENDIXTABLE OF CONTENTSABOUT OUR REPORTING LETTER FROM THE CHAIRMAN07115.1 Climate Leadership5.2 Water Resource5.3 Waste5.4 Air Emissions Control5.5 Green Facility5.6 Biodiversity5.7 Environmental Expenditures and Investments991101151191201211245GREEN MANUFA
9、CTURING AND LOW-CARBON TRANSFORMATION 966.1 Talent Attraction and Retention6.2 Talent Cultivation and Development6.3 Occupational Health and Safety1281411456INCLUSIVE WORKPLACE 1267.1 Supply Chain Overview7.2 Supply Chain Management Framework7.3 Supply Chain Sustainability Management7.4 Responsible
10、Minerals Compliance1561581601687RESPONSIBLE PROCUREMENT 1548.1 Social Involvement Overview8.2 Environmental Conservation8.3 Industry-Academia Collaborations8.4 Community Engagement8.5 Public AdvocacyAPPENDIX:Environmental DataAPPENDIX:Social DataAPPENDIX:Supply Chain DataAPPENDIX:Critical Supplier L
11、istThird-Party Assurance StatementGRI Content IndexSustainability Accounting Standards BoardSustainability IndicatorsTCFD IndexContact Information1751771801851901962022112122132142202212222238CORPORATE CITIZENSHIP 1702.1 Organization and Structure2.2 Sustainability Strategies2.3 UN Sustainable Devel
12、opment Goals and Sustainable Value Assessment2.4 Materiality Assessment and Stakeholder Communication182428362SUSTAINABLE GOVERNANCE 183.1 Board of Directors3.2 Economic Performance and Tax Governance3.3 Business Ethics3.4 Risk Management3.5 Human Rights Management3.6 Regulatory Compliance3.7 Inform
13、ation Security Management505355586874753INTEGRITY AND ACCOUNTABILITY 484.1 R&D and Innovation4.2 Sustainable Manufacturing4.3 Products and Services8391954INNOVATION SERVICE 821.1 Company Profile1.2 Mission and Vision1.3 Financial Performance1416171OPERATING MODEL 143OPERATING MODELSUSTAINABLEGOVERNA
14、NCEINTEGRITY AND ACCOUNTABILITYINNOVATION SERVICEGREEN MANUFACTURING AND LOW-CARBON TRANSFORMATIONINCLUSIVE WORKPLACERESPONSIBLE PROCUREMENTCORPORATE CITIZENSHIPAPPENDIXAs a newly inducted member of the globally recognized WEF Global Lighthouse Network(GLN),ASE Kaohsiung is deeply committed to conti
15、nuing its dual-axis transformation that integrates smart manufacturing and sustainable development.This is achieved by seamlessly incorporating cutting-edge AI and other advanced Industry 4.0 technologies into daily operations,harmonizing production optimization with environmental sustainability.In
16、the realm of smart manufacturing,smart scheduling is implemented to replace manual labor,significantly improving efficiency and reducing product manufacturing cycles.AI image recognition,machine learning,large language models,and feature engineering technology are utilized in process control and man
17、agement to generate early warnings on equipment anomalies and predicting equipment lifespan,ensuring peak yield rates,reduced processing time,and risk mitigation.In sustainable development,AI-enhanced smart energy management is implemented to efficiently adjust manufacturing equipment according to e
18、nvironmental conditions and production requirements.In addition,we employ collaborative AI computations to optimize water operations and increase water recycling,thereby reducing water consumption.Through partnerships,we optimize waste resource utilization in alignment with the circular economy mode
19、l,ensuring appropriate waste removal without environment impacts by using AI tools to monitor waste transport vehicle operations.As a people-centric organization,ASEH prioritizes a safe,secure,and healthy workplace environment.In collaboration with our facilities,subsidiaries,and 6 industry peers,we
20、 spearheaded the inaugural White Paper on Packaging and Testing Machine Safety in 2023,targeting the semiconductor packaging and test sector.To identify safety risks in machinery and design,the white paper delved into domestic and international safety standards and collaborated with industry,governm
21、ent,and academic stakeholders to identify occupational hazards and propose preventative measures.The paper addresses human,machine and environmental factors and focuses on safer design and ergonomic hazard prevention to enable a culture of workplace safety and employee well-being.To implement the co
22、mpanys Biodiversity and No Deforestation Policy,ASEH directed its subsidiaries to conduct nature-related risk assessments at major manufacturing facilities worldwide.Utilizing the TNFD-LEAP model,we identified the companys dependence and impact on nature,assessed the corresponding risks and opportun
23、ities,formulated response strategies,and ensured transparency by publishing the Climate and Environmental Report.In alignment with the Kunming-Montreal Global Biodiversity Frameworks goal of restoring at least 30%of the terrestrial ecosystems,we adopted mitigation hierarchy measures to comply with r
24、egulatory requirements and minimize environmental impact during the construction of a new facility for SPIL,in the Huwei Science Park.Acknowledging that some land use impacts cannot be entirely avoided or mitigated,SPIL is collaborating with the Central Taiwan Science Park Administration Bureau(CTSP
25、)and ecological experts to adopt the adjacent parkland;Park No.5.This initiative aims to restore biodiversity by planting indigenous plants and creating an environment that is beneficial for the communitys physical and mental well-being.Aimed at achieving the Net Positive Impact(NPI)policy goals and
26、 boosting local cultural and social value,Park No.5 will be transformed into a model project that combines ecological restoration with social benefits,and facilitates off-site compensation for the environmental impact caused by SPIL.The CTSP has approved the ecological restoration strategy and const
27、ruction of the ecological model park is scheduled to commence in 2024.Majorsustainability accomplishmentsin 2023Biodiversity ConservationWhite Paper on Packaging and Testing Machine Safety in a Smart and Sustainable Factory4OPERATING MODELSUSTAINABLEGOVERNANCEINTEGRITY AND ACCOUNTABILITYINNOVATION S
28、ERVICEGREEN MANUFACTURING AND LOW-CARBON TRANSFORMATIONINCLUSIVE WORKPLACERESPONSIBLE PROCUREMENTCORPORATE CITIZENSHIPAPPENDIXASEH continues to champion social innovation through the organizing of various competitions.In 2023,we solicited collaboration proposals from the public,providing resources,c
29、onsultation,and subsidies to prospective participants,and assisted winning teams in developing innovative business operation models.Through active engagement,we leverage ASEHs resources to create synergies that amplify the impact of our collective efforts.Our initiatives aim to generate sustainable
30、benefits for our business,the environment,and society.Participants were encouraged to focus on themes such as energy conservation and low carbon,the circular economy,social welfare,and environmental protection.In addition to cash prizes,we pledged to work closely with the winning teams to advance en
31、vironmental and social development goals.Since the conclusion of the 2022 ASE Womens Sustainable Innovation Talent Cultivation Competition,we have been continuously providing support and monitoring the progress of the 10 winning teams.Together with industry-academia experts,we offered practical guid
32、ance on operating a business as well as explored cooperation opportunities with the winning teams to develop innovative business models.ASEH is fully dedicated to promoting social inclusion.In 2023,we actively supported senior long-term care services through a three-year program on active aging in p
33、artnership with several organizations including the Chang Yao Hong-Ying Social Welfare&Charity Foundation,and the Kaohsiung City Government.As part of the program,a well-equipped mobile gym that travels to designated locations around Kaohsiung was launched to provide greater convenience and easier a
34、ccess for the elderly.This not only reduces the travel time and distance for the elderly to engage in physical activity,it also promotes an active and joyful lifestyle that slows aging.In alignment with the SBTi net-zero goal,ASEH established a robust carbon reduction strategy focused on low-carbon
35、products,as well as action plans that encompass investments in carbon credits,renewable energy,low-carbon transportation,and supply chain engagement.Our three major subsidiary groups will also actively increase the implementation of internal carbon pricing which further enhances our carbon reduction
36、 efforts.Recognizing the importance of driving the value chains transformation towards carbon reduction,we remain committed in our efforts to pave the way for the industry supply chain.Our objective is to achieve positive global impacts through initiatives such as technical cooperation with internat
37、ional clients and supporting local suppliers in enhancing their carbon management practices.The ASE Environmental Protection and Sustainability Foundation is dedicated to promoting and implementing initiatives that advance environmental sustainability,guided by the companys four sustainable developm
38、ent indicators:Low-carbon,Circular,Inclusive,and Collaborative.As the significance of carbon inventory continues to rise amidst global ESG trends,the accuracy and reliability of inventory data are key to meeting international net-zero regulatory standards and customer expectations.To mitigate the im
39、pacts of climate change,we have developed plans to establish the Carbon Verification Center,that will provide GHG verification services.The mission of the centre is to enhance the quality of Taiwans industry GHG inventory data,which will allow better identification of potential areas for improvement
40、 and the launching of reduction initiatives.We are hopeful that meaningful industry collaboration in this initiative will accelerate Taiwans journey towards net zero and create a more sustainable environment for all.Towards Net-ZeroSocial Innovation Talent Development and Long-Term Care5OPERATING MO
41、DELSUSTAINABLEGOVERNANCEINTEGRITY AND ACCOUNTABILITYINNOVATION SERVICEGREEN MANUFACTURING AND LOW-CARBON TRANSFORMATIONINCLUSIVE WORKPLACERESPONSIBLE PROCUREMENTCORPORATE CITIZENSHIPAPPENDIXTriple Leadership Status Maintained leadership ranking on climate change for eight consecutive years Rated“A”i
42、n Supplier Engagement Rating for five consecutive years Recognized on the water security A List for four consecutive yearsIndustry Leader Named Industry Leader in the 2016-2023 Dow Jones Sustainability Indices and listed as a constituent of the Dow Jones Sustainability World Index and Emerging Marke
43、ts IndexTop 1%S&P Global ESG ScoreListed on the S&P Global Sustainability Yearbook 2017-2024 and awarded the“Gold Class”for eight consecutive years;ranked within top 1%among the best performing companies under the Semiconductors and Semiconductor Equipment Industry Group13 Awards2023 Taiwan Corporat
44、e Sustainability Awards Executive Committee(TCSA):Top 100 Domestic Companies Sustainability Model Award,Corporate Sustainability Report Award(Platinum),Talent Development Leadership Award,Climate Leadership Award,Social Inclusion Leadership Award,Growth through Innovation Leadership Award,Supply Cha
45、in Sustainability Leadership Award and Workplace Wellbeing Leadership AwardGlobal Corporate Sustainability Awards(GCSA):Sustainability Reporting Silver AwardTaiwan Sustainability Action Awards(TSAA):Circular Economy and Sustainable Manufacturing Gold Award(SDG 12),Digital Transformation and Sustaina
46、ble Manufacturing Gold Award(SDG 9),and Ten-Year Taiwan Ocean Protection Plan Gold Award(SDG 14)Taiwan Biodiversity Awards(TWBA):Bronze Award 9 Years in a Row Listed in the 2023 FTSE4GOOD Emerging Markets Index for the year of 20237 Consecutive Years Listed on the 2017-2023 FTSE4Good TIP Taiwan ESG
47、Index,developed by FTSE4Good in partnership with Taiwan Index Plus Corp.(TIP),a Taiwan Stock Exchanges(TWSE)wholly-owned subsidiaryRated AgainRated MSCI ESG“A”for the year 2023Prime StatusAwarded ISS ESG Prime status for outstanding corporate sustainability performanceBest ranking achievedReceived R
48、ookie Award for Large Enterprises,Family-Friendly Workplace Award,and Top 100 corporations in the Excellence in Corporate Social Responsibility Award for the year of 20232023 Awards andRecognitions Excellence in Corporate Social Responsibility2023天下永續公民獎大型企業 新秀獎ASE Technology Holding,Co.,Ltd.日月光投控6O
49、PERATING MODELSUSTAINABLEGOVERNANCEINTEGRITY AND ACCOUNTABILITYINNOVATION SERVICEGREEN MANUFACTURING AND LOW-CARBON TRANSFORMATIONINCLUSIVE WORKPLACERESPONSIBLE PROCUREMENTCORPORATE CITIZENSHIPAPPENDIXABOUT OUR REPORTINGThis is our 6th Sustainability Report for ASEH.This report has been prepared in
50、accordance with the GRI Standards and SASB Standards.Corporate CSR Division is in charge of data gathering,compiling and editing.This report is available in both Chinese and English.The complete electronic version can be downloaded from our website.https:/ you have any comments or suggestions regard
51、ing this report,please contact us at:Corporate CSR Division,ASE Technology Holding Address:No.26,Chin 3rd Rd.,Nanzih Dist.,Kaohsiung,Taiwan Tel:+886-7-361-7131 Email:ASEH_CSR ESG Website:https:/ Boundary The report discloses the economic,environmental and social performance of the ASE(Advanced Semic
52、onductor Engineering,Inc.and its subsidiaries),SPIL(Siliconware Precision Industries Co.,Ltd.and its subsidiaries),and USI(USI Inc.and its subsidiaries).The scope of this report includes:ASE Facilities:Kaohsiung,Chungli,Wuxi,Shanghai(Material),ISE labs China,Japan,Korea,Singapore,Malaysia and ISE La
53、bs SPIL Facilities:Da Fong,Chung Shan,Zhong Ke,Zhong Ke II,Zhong Gong,Hsinchu,Changhua and Suzhou USI Facilities:Nantou,Zhangjiang,Kunshan,Jinqiao,Huizhou,Mexico and Vietnam Any boundary adjustment made to the scope of data will be separately explained in the text of the report.Financial figures in
54、this report are prepared in accordance with international standards and domestic regulations approved and promulgated by the Financial Supervisory Commission(FSC),including International Financial Reporting Standards(IFRS),International Accounting Standards(IASs),and the interpretations and statemen
55、ts of Standing Interpretations Committee(SIC)and International Financial Reporting Interpretations Committee(IFRSIC)adopted by the International Accounting Standards Board(IASB),as well as the Regulations Governing the Preparation of Financial Reports by Securities Issuers,and are audited by Deloitt
56、e&Touche.All figures are presented in US dollars unless otherwise specified.7OPERATING MODELSUSTAINABLEGOVERNANCEINTEGRITY AND ACCOUNTABILITYINNOVATION SERVICEGREEN MANUFACTURING AND LOW-CARBON TRANSFORMATIONINCLUSIVE WORKPLACERESPONSIBLE PROCUREMENTCORPORATE CITIZENSHIPAPPENDIXUSI ZhangjiangUSI Kun
57、shanUSI JinqiaoUSI HuizhouUSI MexicoUSI VietnamUSI NantouASE JapanASE KoreaASE SingaporeASE MalaysiaASE KaohsiungASE ChungliISE LabsASE Shanghai(Material)ISE Labs ChinaASE WuxiSPIL Da FongSPIL Chung ShanSPIL Zhong KeSPIL Zhong Ke II SPIL Zhong Gong SPIL HsinchuSPIL ChanghuaSPIL SuzhouASE Social Ente
58、rprise Co.,Ltd.ASE Cultural&Educational FoundationASE Charitable FoundationASE Environmental Protection and Sustainability FoundationChang Yao Hong-Ying Social Welfare&Charity Foundation8OPERATING MODELSUSTAINABLEGOVERNANCEINTEGRITY AND ACCOUNTABILITYINNOVATION SERVICEGREEN MANUFACTURING AND LOW-CAR
59、BON TRANSFORMATIONINCLUSIVE WORKPLACERESPONSIBLE PROCUREMENTCORPORATE CITIZENSHIPAPPENDIXASE Kaohsiung Sustainability Report SPIL Sustainability Report USI Sustainability Report ASE Chungli Sustainability Report Internal Review and ApprovalThe disclosed information and data in this report were initi
60、ally verified by the relevant managers of the data/information providers.The initial draft was compiled by the Corporate CSR Division.After being reviewed by the Corporate Finance and Regulatory Compliance Departments,the final report was approved and authorized for issue by the Chairman of Corporat
61、e Sustainability Committee.Other ESG/Sustainability Reports in ASEH Within the ASEH,we have also published four separate Sustainability reports providing more detailed sustainability information of our ASE Kaohsiung and Chungli Facilities in Taiwan,SPIL and USI.The complete electronic version can be
62、 downloaded from https:/ Assurance In accordance with the ISAE 3000(Revised),ASEH engaged Deloitte&Touche to perform a limited assurance engagement on this report that reflected disclosures presented in accordance with the GRI Standards,SASB Standards,and Taiwan Stock Exchange Corporation Rules Gove
63、rning the Preparation and Filing of Sustainability Reports by TWSE Listed Companies.All ASEH sites have acquired certifications in environmental,social,information security and other relevant fields.The companys conformity with international standards ensures complete regulatory compliance in our ma
64、nagement and control measures,and operating procedures.For more information,please refer to the chart on next page:SUSTAINABILITY REPORTSiliconware Precision20239OPERATING MODELSUSTAINABLEGOVERNANCEINTEGRITY AND ACCOUNTABILITYINNOVATION SERVICEGREEN MANUFACTURING AND LOW-CARBON TRANSFORMATIONINCLUSI
65、VE WORKPLACERESPONSIBLE PROCUREMENTCORPORATE CITIZENSHIPAPPENDIXCertificationFacilityISO 14001Environmental Management SystemISO 22301 Business Continuity Management SystemsISO 50001 Energy Management SystemsISO 46001 Water Efficiency Management SystemsISO 14064-1 Greenhouse GasesQC 080000 Hazardous
66、 Substance Process Management SystemISO 45001Occupational Health and Safety Management SystemsISO/IEC 27001 Information Security Management SystemsGlobal Lighthouse NetworkASE KaohsiungVVVVVVVVVASE ChungliVVVVVVVASE WuxiVVVVASE Shanghai(Material)VVVVVISE Labs ChinaVVNA2VASE JapanVVVASE KoreaVVVVASE
67、SingaporeVVVVASE MalaysiaVVVISE Labs VVNA2SPIL Da FongVVVVVVVSPIL Chung ShanVVVVVVVSPIL Zhong KeVVVVVVVVSPIL Zhong Ke IIVNA1VNA1VVSPIL HsinchuVVVVVVVSPIL ChanghuaVVVVVVVSPIL SuzhouVVVVVVVSPIL Zhong GongVVVVNA2VUSI NantouVVVVVVVUSI ZhangjiangVVVVVUSI KunshanVVVVVUSI JinqiaoVVVVVUSI HuizhouVVVVVUSI Me
68、xicoVVVVVUSI VietnamVVVVV1 The newly built facility of SPIL Zhong Ke II is scheduled to obtain QC 080000 certification in August 2024,followed by ISO 50001 certification in October 20242 QC 080000 is not applicable to ISE Labs China,ISE Labs and SPIL Zhong Gong,as these are pure testing facilities a
69、nd do not engage in any manufacturing of products10OPERATING MODELSUSTAINABLEGOVERNANCEINTEGRITY AND ACCOUNTABILITYINNOVATION SERVICEGREEN MANUFACTURING AND LOW-CARBON TRANSFORMATIONINCLUSIVE WORKPLACERESPONSIBLE PROCUREMENTCORPORATE CITIZENSHIPAPPENDIXLetter from the ChairmanThe 2023 United Nations
70、 Climate Change Conference(COP 28)concluded with an unanimous agreement that climate transition must be accelerated to fulfill the Paris Agreement targets of keeping global temperature rise well below 1.5C.For that to happen,it is necessary to achieve a 43%annual reduction in global greenhouse gas e
71、missions by 2030 compared with 2019 levels.Adding to the immense climate challenges,the global economy has yet to recover fully from the pandemic due to various factors including destocking,geopolitical and inflationary impacts.Despite the adverse environment,ASEH remains proactive and optimistic,an
72、d determined to transform crises to opportunities.We are deeply committed to applying the four pillars of our sustainability strategy-Low Carbon,Circular,Inclusive,and Collaborative,and leveraging on the semiconductor value chain to develop more efficient AIoT environments and devices that will enab
73、le generations to enjoy a smarter and more sustainable lifestyle.Low Carbon Transition and Pursuing Responsible and Sustainable DevelopmentsIn alignment with the call to reaching net zero emissions by 2050,we have developed five strategic action plans-investments in carbon credits,renewable energy,l
74、ow-carbon transportation,low-carbon products,and supply chain engagement.These plans are formulated in accordance with the reduction pathway guidelines of the Science-Based Targets Initiative(SBTi).We have developed a Renewable Energy Platform that will drive our subsidiaries to increase the use of
75、renewable energy through energy self-sufficiency,power purchase agreements,and renewable energy certificates(RECs).In 2023,84%of ASEHs facilities worldwide used renewable energy or RECs,accounting for 20%of the companys total electricity consumption.Of which,12 of ASEHs facilities have achieved RE10
76、0.The actions taken by all our subsidiaries have resulted in a reduction of 603,327 tCO2e.Besides climate change,we are also deeply focused on biodiversity conservation.ASEH has adopted the Kunming-Montreal Global Biodiversity Framework to draft the Biodiversity and No Deforestation Policy in 2023,s
77、erving as a guidance for the companys conservation efforts.We are continuously conducting assessments on the nature-related risks of our global facilities,and developing counterstrategies from the identification of all nature-related dependencies,impacts,risks,and opportunities associated with our o
78、perations.On top of that,were taking steps to incorporate nature related risks and opportunities into our overall strategic planning by adopting the Taskforce on Climate-Related Financial Disclosures(TCFD)and Taskforce on Nature-Related Financial Disclosures(TNFD)frameworks,and publishing our Climat
79、e and Environmental Report to disclose our actions for climate change and biodiversity.Building Climate Resilience with a Circular EconomyWithout doubt,the earths climate changes are triggering heavier rainfall,worsening drought,and other extreme weather events.These developments have a huge impact
80、on our business operations.In order to strengthen the companys resilience,we have consistently formulated comprehensive adaptation strategies including the opening of Taiwans first industrial wastewater recycling plant at ASE Kaohsiung in 2015.Since then,we have successively established water recycl
81、ing plants at our other facilities in ASE Chungli,ASE Malaysia,and ASE Singapore to treat and purify wastewater for reuse.These recycling plants have helped convert nearly 80%of wastewater from our production processes for reuse,greatly reducing our water consumption and strengthening our facilities
82、 capabilities in mitigating potential water disruptions resulting from extreme weather.In 2023,we formulated the Water Resource Management Policy as a guide for all subsidiaries to implement and manage water conservation,water recycling,and water contamination.For the year 2023,we recorded an annual
83、 cumulative water savings of 1.28 million metric tons.The United Nations has set an ambition to complete negotiations on a Global Plastics Treaty by the end of 2024.The treaty aims to ensure that businesses gradually reduce the volume of plastics used,and consequentially lower the environmental impa
84、ct of plastic waste.In response,ASEH has adopted the circular economy approach to address the potential transition risks generated from this development.In 2022,ASE Kaohsiung established the Plastic 11OPERATING MODELSUSTAINABLEGOVERNANCEINTEGRITY AND ACCOUNTABILITYINNOVATION SERVICEGREEN MANUFACTURI
85、NG AND LOW-CARBON TRANSFORMATIONINCLUSIVE WORKPLACERESPONSIBLE PROCUREMENTCORPORATE CITIZENSHIPAPPENDIXJason C.S.ChangChairmanRecycling Center to convert waste plastic into usable products.After a year of hard work,we successfully increased our productization ratio from 40%to 91%.Another of our subs
86、idiary,USI,conducted a similar program of recycling plastics and in 2023,16.72%of their products were made using recycled plastics.Overall,our subsidiaries have achieved a waste recycling rate of more than 90%over the years.Driving Service Innovation through Digital and Sustainability Transformation
87、As a technology company,fostering innovation fuels our growth and enables us to provide strategic value to the industry.Over the years,we have accelerated our developments in smart automation and building smart factories.We deploy smart manufacturing and AI to optimize production scheduling and proc
88、ess parameters,and perform preemptive machine maintenance and troubleshooting that drive cost minimization and yield maximization.Today,we have established a total of 46 smart factories which is a strong testament of our commitment to sustainability through digital transformation.The cornerstones of
89、 ASEHs sustainability development involve conserving and reducing energy and water usage,and minimizing waste output.To optimize energy usage across our facilities,we adopted the use of AI in smart energy management to conduct comprehensive data collection and automatic monitoring based on optimal p
90、arameters.Our water resources are managed through the use of fluorescence detection techniques which monitors the quality of post-process discharged water.We employ AI algorithms to optimize water production processes,avoid unnecessary waste of water resources,and increase the quantity of recycled w
91、ater.We transform waste into resources using a circular economy model through multi-party collaboration.To effectively mitigate the environmental impact of waste materials,the management process for non-recyclable waste has been fully digitized,including AI-powered monitoring of waste disposal vehic
92、les to ensure proper disposal.Our employees are key to the success of ASEHs dual-axis transformation in smart manufacturing and sustainable development.We are focused on enhancing our employees technical skills to create value,and building smart and advanced factories to support our net zero commitm
93、ent and our corporate vision of living in harmony with the environment.In parallel,the induction of ASE Kaohsiungs wafer bumping factory into the World Economic Forum Global Lighthouse Network(WEF GLN)was a significant recognition of ASEHs achievements in sustainable manufacturing.Building a Diverse
94、 and Inclusive WorkplaceHiring and retaining the right talent,as well as talent placement are key to the continuous growth of a company.Given the diversity of our customer base and market demands,ASEH maintains 25 operational sites across 9 countries,with employees of 18 different nationalities supp
95、orting our global operations and providing a competitive edge.We endeavor to build an open workplace that embraces diversity,equity,and inclusion(DEI),thus enabling employees to grow and foster mutual respect.We offer competitive salaries and benefits,such as 10 weeks of paid maternity leave for emp
96、loyees at ASE Kaohsiung and ASE Chungli and 10 days of paternity leave and paternity check-up leave(introduced in 2023),both of which exceed the mandatory requirements.Employees opinions are of utmost importance to us.In 2023,we conducted another round of the Employee Engagement Survey exploring eme
97、rging issues including Sustainable Engagement,Retention,and ESG,and adding two new categories on DEI and Employee Well-being.The survey covered 95.1%of total employees working at ASEH and its subsidiaries.We cherish employees genuine feedback and use it as the basis for improving our work environmen
98、t and management approaches.In 2023,ASEH was honored with the National Talent Development Award from the Ministry of Labor.Awards and recognition motivate us further in developing every employees growth and loyalty within the company,and powering ASEHs advancements in sustainability.Creating Value a
99、nd Sustainable Collaboration with SuppliersAs a leading provider of semiconductor packaging and test services,ASEH has a responsibility to work with its suppliers to combat climate change 12OPERATING MODELSUSTAINABLEGOVERNANCEINTEGRITY AND ACCOUNTABILITYINNOVATION SERVICEGREEN MANUFACTURING AND LOW-
100、CARBON TRANSFORMATIONINCLUSIVE WORKPLACERESPONSIBLE PROCUREMENTCORPORATE CITIZENSHIPAPPENDIXRichard H.P.ChangVice Chairman and Presidentchallenges.We have developed an overarching supply chain management framework for sustainable development,and to co-create greater sustainable value.Our suppliers m
101、ust comply with all laws and regulations related to human rights,health and safety,environmental protection,and business ethics.In parallel,we also conduct sustainability risk assessments through questionnaires and onsite audits to ensure that our suppliers actions and policies are socially responsi
102、ble and in accordance with our sustainability goals.For suppliers that fall short of our expectations,we provide our expertise and support to get them back on track.Where necessary,we may remove suppliers from our procurement list to prevent any negative environmental or social impact to the supply
103、chain.We are also deeply committed to expanding our supplier engagement to generate positive impacts and accelerate our sustainability achievements.In pursuit of our net zero goals,we have an ongoing program that helps suppliers conduct carbon inventory,identify emission hotspots in their operationa
104、l processes,and formulate plans to reduce carbon footprint.We have also designed innovative programs to drive greater supplier collaboration.In 2023,we organized another competition for the Supplier Sustainability Awards,encouraging suppliers to submit project proposals based on the four sustainabil
105、ity pillars of ASEH.Our supplier communication on sustainability value and principles is all encompassing and systematic,and includes the organizing of forums,multi-dimensional sustainability projects and various educational and training programs.While building a robust bilateral communication mecha
106、nism,we are also continuously exploring collaboration opportunities in sustainability to jointly create a net zero supply ecosystem across the industry.Generating Positive Influence through Social Inclusion for the Common GoodAddressing social issues and promoting social inclusion continue to top ou
107、r ESG agenda.Our afforestation program is an ongoing effort and in 2023,our total afforestation area covered 31.68 hectares,marking a significant progress towards our goal of 249.27 hectares.Over the years,our afforestation efforts have resulted in a cumulative carbon sink of 9,370.52 tCO2e as per t
108、he UN IPCC carbon sink methodology.At the same time,our Campus LED Project,now entering its 10th year,has completed the installation of 161,261 LED tube lights at 155 elementary and junior high schools in rural areas and communities surrounding ASEs facilities.Besides protecting schoolchildrens eyes
109、ight,the project has also helped save 16,531,800 kWh of electricity and reduced 8,465 tCO2e over the years.For an enterprise to thrive and prosper,rallying the support of the community is crucial.At ASEH,we have developed programs like the 2023 ASEH Social Innovation Competition that focused on ener
110、gy conservation and carbon reduction,circular economy,social welfare,and environmental protection.The 3 winning teams were selected based on their innovative ideas in sustainability,and they were awarded cash prizes as well as an opportunity to partner with ASE on their proposals.We remain highly su
111、pportive of social enterprises in identifying new business opportunities,and balancing sustainable development to help solve societal problems.Shaping a Sustainable FutureAmidst a rapidly evolving landscape of disruptive technologies and sustainability transformation,we firmly believe in Tech for Go
112、od and the prospects of creating a better tomorrow.Innovation is our core value,and our goal is to create high value-added solutions,enhance our efficiency,and foster talent to address the needs of an increasingly complex and dynamic market.The semiconductor industry is expected to flourish due to i
113、ts boundless potential and with that,comes greater corporate social responsibility.As a key player in the semiconductor eco-system,ASEH is determined to sharpen our focus on ESG,and attain a balance between the companys operational and ESG targets.Leveraging on the critical role of semiconductors an
114、d our capability to provide innovative technologies,we will continue to partner with different industry sectors,the government,academia,stakeholders,and the public to ignite positive changes,and shape a brighter and truly sustainable future.13OPERATING MODELSUSTAINABLEGOVERNANCEINTEGRITY AND ACCOUNT
115、ABILITYINNOVATION SERVICEGREEN MANUFACTURING AND LOW-CARBON TRANSFORMATIONINCLUSIVE WORKPLACERESPONSIBLE PROCUREMENTCORPORATE CITIZENSHIPAPPENDIXOPERATING MODEL1.1 Company ProfileASE Technology Holding Co.,Ltd.(“ASEH”)(TWSE:3711;NYSE:ASX),established in April 2018 and its subsidiaries include ASE,SP
116、IL and USI.ASEHs mission is to create a business model that combines the strengths of member companies to enhance research and development,increase the level of competitiveness,develop an integrated supply chain and expand our global market footprint.Our structure enables us to innovate and develop
117、miniaturized,high performance and highly integrated services for customers to increase the speed to market for their next-generation products and solutions.By integrating the groups resources,we can continue to explore strategic opportunities with industry partners to strengthen technology innovatio
118、n and reduce risks,and to create a sustainable future for the industry.For details,please visit https:/14OPERATING MODELSUSTAINABLEGOVERNANCEINTEGRITY AND ACCOUNTABILITYINNOVATION SERVICEGREEN MANUFACTURING AND LOW-CARBON TRANSFORMATIONINCLUSIVE WORKPLACERESPONSIBLE PROCUREMENTCORPORATE CITIZENSHIPA
119、PPENDIXService CentersSystem ServicesIC ServicesSales and Representative OfficesService ScopeASEH is the leading provider of semiconductor manufacturing services in assembly and test.The company offers complete turnkey solutions covering front-end engineering test,wafer probing and final test,IC pac
120、kaging,materials and electronic manufacturing services and develops leading edge technologies to serve the semiconductor,electronics and digital technology market.Global OperationHeadquartered in Taiwan,ASEHs sales and manufacturing facilities are strategically located globally in Taiwan,China/Hong
121、Kong,South Korea,Japan,Malaysia,Singapore,Vietnam,Mexico,U.S.A.,Tunisia and European countries.ASEH has a worldwide headcount of over 92,000 employees(as of December 2023).IC DesignFront-end Test EngineeringWafer FabWafer Bump&ProbeMaterial(Substrates)IC Packaging(Assembly)Final TestModule,Board Ass
122、embly&Test15OPERATING MODELSUSTAINABLEGOVERNANCEINTEGRITY AND ACCOUNTABILITYINNOVATION SERVICEGREEN MANUFACTURING AND LOW-CARBON TRANSFORMATIONINCLUSIVE WORKPLACERESPONSIBLE PROCUREMENTCORPORATE CITIZENSHIPAPPENDIX1.2 Mission and VisionASEH offers the best manufacturing services in semiconductor pac
123、kaging/testing,substrates,and systems.We act as an extension of our customers own operations,helping them achieve maximum success through efficient resource utilization and our extensive manufacturing chain.To stay ahead of the semiconductor technology curve,ASEH builds a highly experienced and skil
124、led engineering team that continually innovates and develops the most advanced semiconductor technologies.ASEH adheres to the highest corporate governance standards and transforms business philosophies into sustainable actions.As a major player of the global semiconductor chain,we carefully strategi
125、ze according to industry development and trends,and seek talent and resources worldwide.We form strategic alliances with the government,industry,academia and business partners to keep innovating and create a mutually beneficial business environment.These alliances help support our sustainable develo
126、pment goals to achieve the betterment of mankind and ecological conservation.ASEH Value Creation ModelIn alignment with our mission and vision,and to maintain industry innovation and leadership,we incorporated future industry trends together with the feedback from our senior management and operating
127、 units on the indicators about corporate sustainability to establish the ASEH Value Creation Model.Our value creation model consists of three strategies-Integrate,Expand,Innovate.The model enables ASEH to respond to future challenges and more importantly,it forms the basis of ASEHs foundation in int
128、egrating sustainability into our business strategy.Integrateresources across organizational boundaryExpandindustry influence through scale upInnovatevalue differentiation through technology16OPERATING MODELSUSTAINABLEGOVERNANCEINTEGRITY AND ACCOUNTABILITYINNOVATION SERVICEGREEN MANUFACTURING AND LOW
129、-CARBON TRANSFORMATIONINCLUSIVE WORKPLACERESPONSIBLE PROCUREMENTCORPORATE CITIZENSHIPAPPENDIX63.6%12.1%13.0%11.2%0.1%201920202021202220230.0100,000.0200,000.0300,000.0400,000.0500,000.0600,000.0700,000.0800,000.0581,914.5413,182.2476,978.7569,997.1670,872.61.3 Financial Performance1The Groups consol
130、idated revenue in 2023 amounted to NT$581.9 billion(including NT$306.7 billion in semiconductor assembly and testing business,NT$268.3 billion in electronic manufacturing services and NT$6.9 billion in others),under the global economic circumstances,a decline of approximately NT$89 billion over 2022
131、,declined 13.3%year-over-year.In terms of the semiconductor assembly and testing business,the consolidated revenue in 2023 declined by NT$53.2 billion over 2022,with a decline of 14.8%year-over-year(excluding substrate and inter-segment revenue).In addition,for the electronic manufacturing services
132、business,the consolidated revenue in 2023 decreased by NT$33.8 billion over 2022,with a decline of about 11.2%year-over-year.2023 RevenueWe categorize our operating revenues geographically based on the headquarters in which customers are located.Annual Operating Revenue1 For further details on finan
133、cial performance,please refer to our consolidated financial report:https:/ United States Taiwan Asia Europe OthersUnit:NT$Million17OPERATING MODELSUSTAINABLEGOVERNANCEINTEGRITY AND ACCOUNTABILITYINNOVATION SERVICEGREEN MANUFACTURING AND LOW-CARBON TRANSFORMATIONINCLUSIVE WORKPLACERESPONSIBLE PROCURE
134、MENTCORPORATE CITIZENSHIPAPPENDIX2.1 Organization and StructureThe Corporate Sustainability Committee(CSC)was formed by the company to serve as the highest level of authority in the planning and supervision of sustainability-related strategies,and facilitating the accomplishment of sustainability ma
135、nagement policies and goals of the 3 member companies of ASEH.The CSC comprises ASEHs directors and is headed by the chairman,who oversees the committees performance and reports the progress to the board of directors.While the management continues to set the company on a growth trajectory,it remains
136、 equally focused on creating positive social and environmental impacts.At least once a year,the Corporate Sustainability Committee reports to the Board of Directors on the following areas:(1)current policy guidelines and organizational structure;(2)status on the progress towards sustainable developm
137、ent;and(3)management policies,goals,and future plans on major sustainability issues.The Board of Directors oversees and reviews implementation outcomes.The Corporate CSR Division was established to serve as the executive secretariat of the CSC.The Corporate CSR Division supports the resource integra
138、tion and site expertise across all 3 member companies to formulate topdown and horizontal promotional strategies.At the same time,each member company-ASE,SPIL and USI,has a(Corporate)Sustainability Committee established at the group level with multiple taskforces.The committee,headed by a senior lev
139、el executive,is tasked with identifying key issues for discussion,annual presentation of performance and results,and reviewing the progress of meeting various short,medium and long-term sustainability objectives.In the 2023 CSC annual meeting,the CSC formulated short,medium and long-term goals that
140、helps the company better respond to the evolving industry landscape and global developments in sustainability trends.For more information,please refer to the relevant chapters.SUSTAINABLE GOVERNANCE18OPERATING MODELSUSTAINABLEGOVERNANCEINTEGRITY AND ACCOUNTABILITYINNOVATION SERVICEGREEN MANUFACTURIN
141、G AND LOW-CARBON TRANSFORMATIONINCLUSIVE WORKPLACERESPONSIBLE PROCUREMENTCORPORATE CITIZENSHIPAPPENDIXChairperson:Jason C.S.Chang ASEH ChairmanVice Chairperson:Joseph Tung ASEH Group CFOMembers:Tien Wu ASE General Manager and CEOChi-Wen Tsai SPIL Chairman and General ManagerJeffrey Chen USI Chairman
142、Corporate GovernanceEnvironment&Green InnovationSupply Chain ManagementEmployee Care&DevelopmentSocial InvolvementRisk Management 1Risk Management 2Environmental InnovationEmployee&Social InvolvementCorporate GovernanceCorporate GovernanceGreen Product&InnovationValue Chain ManagementEmployee&Societ
143、y Well-being EngagementEnvironmental Protection&Occupational SafetyASEH Corporate Sustainability CommitteeExecutive SecretariatCorporate CSR DivisionPromote the execution of sustainability action plansAssess sustainability performanceDisclose information on sustainability performanceASE Corporate Su
144、stainability CommitteeSPIL Sustainability CommitteeUSI Sustainability CommitteeChairperson:Chi-Wen Tsai Chairman and General ManagerChairperson:Tien Wu General Manager and CEOChairperson:C.Y.Wei PresidentTaskforcesDevelop and execute action plans Monitor implementation progress and performance of th
145、e action plansProvide expertise support and experience sharingDevelop and establish corporate-wide sustainability vision,policies,and targetsIdentify risks and opportunities related to sustainability issues and determine responsive strategies and investmentsSupervise the planning and implementation
146、of sustainability strategiesOversee sustainability performance and information disclosureBoard of DirectorsIdentify corporate-wide sustainability mission or visionDeclare policies,systems or relevant management guidelines19OPERATING MODELSUSTAINABLEGOVERNANCEINTEGRITY AND ACCOUNTABILITYINNOVATION SE
147、RVICEGREEN MANUFACTURING AND LOW-CARBON TRANSFORMATIONINCLUSIVE WORKPLACERESPONSIBLE PROCUREMENTCORPORATE CITIZENSHIPAPPENDIXDimensionsKey ProjectsPartnersPositive ChangesEnvironmentalNet Zero Emission Government External Consultants Structural Transformation of Energy and Lower Operational Risks Mi
148、tigation of Extreme Climate ChangeClimate and Environmental Report External Consultants Strengthening Global Climate Risk Management Responding to Stakeholders ConcernsBiodiversity Conservation and Restoration Government External Consultants Mitigating or Compensating the Impact of Operations on Nat
149、ure Slowing Down Biodiversity LossCircular Economy within Our Value Chain Academic and Research Institutions Suppliers Waste Recycling and Reusing Increasing the Circular of Energy Resource and the Eco-efficiencyExpanding the Scope of Implementation of Innovative Technologies External Consultants Cu
150、stomers Academic and Research Institutions Improving the Positive Impact of Value Chain ActivitiesSocialASEH Ocean Guardian Project Government External Professional Institutions Non-profit Organizations Cleaning the Coast and Marine Environment Conservation of Marine Ecology and Biodiversity2023 ASE
151、H Social Innovation Competition Government External Consultants Academic and Research Institution Support Social Innovation and Promote the Development of Sustainable Ecological Industries Implement Environmental Protection and Create Sustainable Impact TogetherAssistance Program for Disadvantaged S
152、tudents Academic and Research Institutions Improving Learning Environment Increasing the Willingness of and Opportunities for Disadvantaged Students to LearnEmployee Engagement Survey External consultants Strengthen Talent Attraction,Retention,and Cultivation Enhance Employees Approval of and Alignm
153、ent with the CompanySystems for Key Talent RetentionNA Strengthen Talent Attraction and RetentionGovernanceASEH Supplier Sustainability Awards External Consultants Auditing Organizations Suppliers External Experts and Scholars Promoting Sustainable Collaboration and Cultivating Sustainable Suppliers
154、Supplier Guidance on Carbon Inventory External Consultants Auditing Organizations Suppliers Developing Supplier Capabilities to Perform Carbon InventoryConflict Minerals Management External Auditing Organizations Authorities Implement Responsible ProcurementCorporate Governance Evaluation System Aut
155、horities Enhancement of Corporate Governance MechanismsPerformance Evaluations for the Board of Directors and Its Subordinate Functional Committees Authorities Enhancing the Functions of the Board of DirectorsInformation Security Management External Professional Consultants and Institutions Supplier
156、s Improving Information Security Capacity Minimizing Operating Risks2023 Key Sustainability Projects20OPERATING MODELSUSTAINABLEGOVERNANCEINTEGRITY AND ACCOUNTABILITYINNOVATION SERVICEGREEN MANUFACTURING AND LOW-CARBON TRANSFORMATIONINCLUSIVE WORKPLACERESPONSIBLE PROCUREMENTCORPORATE CITIZENSHIPAPPE
157、NDIXSustainable Management Framework We have established our sustainable management framework in accordance with our Sustainable Development Best Practice Principles and Corporate Sustainability and Citizenship Policy.We have also identified sustainable development opportunities through risk identif
158、ication and close collaboration with our partners and stakeholders.ASEH works with external parties to implement its goals and targets in sustainable development,strengthen the companys business decision-making process,and create a sustainable business model.ASEH Sustainable Management Framework Sus
159、tainable Development Best Practice Principles Corporate Sustainability and Citizenship PolicyMissionVisionPrinciplesStrategiesOperationStakeholderDimensionsObjectivesHave a positive influence on the societyProvide a unified solution for creating efficient semiconductorsElevate R&D capabilityComplian
160、ce with highest corporate governance standardsImplement sustainable business philosophiesCost controlIntegrated risk managementDevelopment of advanced technologyDemonstration of a responsible attitudeCircularInclusiveLow CarbonCollaborativeAssemblyASESPILTestingASESPILMaterialASEModuleUSIShareholder
161、sEmployeesCustomersSuppliers/ContractorsGovernmentIndustry Unions and AssociationsCommunity(incl.NGOs,Media)Integrity and AccountabilityInnovation Service Green Manufacturing and Low-Carbon TransformationInclusive WorkplaceResponsible ProcurementCorporate CitizenshipEnsure that the products,componen
162、ts,and raw materials associated with the ASEH value network can all be recycled,and maximize their efficiency and value while using themThrough the building of smart factories,ASEHs digital transformation is improving human capital,helping customers innovate in their products and applications,and en
163、abling smart living with greater convenience to physical lifeDevelop ASEH into a climate leader and provide the global market with low-carbon solutionsAccelerate sustainable growth and social development as well as co-create shared value by engaging in collaborative innovation21OPERATING MODELSUSTAI
164、NABLEGOVERNANCEINTEGRITY AND ACCOUNTABILITYINNOVATION SERVICEGREEN MANUFACTURING AND LOW-CARBON TRANSFORMATIONINCLUSIVE WORKPLACERESPONSIBLE PROCUREMENTCORPORATE CITIZENSHIPAPPENDIXASE Tree Protection ActivitySPIL Beach Cleanup ActivityUSI Sustainability Committee Annual Meeting and ForumDimensionsA
165、ctivitiesEffects of building a sustainable cultureEnvironmentalASEH has pledged to achieve net-zero emissions by 2050 by setting clear short,mid and long-term goals,guided by its five major principles.Concurrently,ASEH is actively involved in climate change initiatives across various sectors,includi
166、ng government,academia,and non-profit organizations.ASEH is a member of the SEMI Semiconductor Climate Consortium(SCC),Taiwan Net Zero Emissions Association,and the Taiwan Carbon Capture Storage and Utilization Association.We have also submitted our net-zero initiatives to the SBTi.We aim to leverag
167、e our influence on a global scale to foster a resilient,transformative and progressive semiconductor supply chain.Expand the influence of net zero initiatives Promote low-carbon transformation in the supply chain Drive low-carbon manufacturing innovativelySocialASEH and the CommonWealth Magazine hav
168、e jointly organized the selection of outstanding“Smiling Taiwan Creative Lesson Plan”for nine consecutive years.This initiative aligns with the United Nations sustainable development goals(SDGs)and encourages teachers from senior and vocational high schools,junior high schools,and elementary schools
169、 to leverage local resources and design unique learning curriculum.By encouraging students to work together as a team,students will gain more insights into local cultures and their environments.The program also aims to raise awareness of global sustainability trends through education and engagement.
170、At the ASE Environmental Education Award in 2023,the winning lesson plans for the“junior,senior,and vocational high school category”and“elementary school category”were“Golden Elegance and Sustainability”designed by the Taipei Municipal Jinhua Junior High School and“Maritime Beauty”designed by the Ta
171、itung County Ningbu Elementary School,respectively.“Golden Elegance and Sustainability”integrated concepts of biodiversity,green buildings,and carbon footprint,enabling students to adopt sustainable practices in everyday life.“Maritime Beauty”combined traditional elder stories with modern coastal ec
172、ological observation methods,promoting an innovative program for marine protection education.Improve environmental literacy Raise sustainability-related awareness Promote social participationEconomicIn 2023,ASEH held its second Supplier Sustainability Award,introducing new themes of“Inclusive”and“Co
173、llaborative”while expanding its supplier categories to include transportation and logistics suppliers.These efforts demonstrated ASEHs steadfast commitment to developing a sustainable supply chain.During the supplier selection process,meetings were convened with related departments across all major
174、ASEH business locations.By including key operational units in the supplier selection process,ASEH aims to enhance employees and suppliers understanding of its sustainable strategies and actions;thereby strengthening the companys connection with its suppliers,facilitating the circular economy,and imp
175、roving the industrys carbon reduction-related capabilities.Incentivize suppliers to engage in sustainability-related endeavors Construct a circular economic industrial chain Reduce the social costs of carbon emissionsEnriching and Promoting Sustainable Culture Sustainability is integral to corporate
176、 culture and drives broad transformation in companies.At ASEH,we continue to rigorously fulfil our corporate social responsibilities in tandem with maintaining our competitive edge.We have developed a diverse range of programs to ensure that sustainability is firmly ensconced at the core of ASEHs co
177、rporate DNA.To that end,we aim to extend the culture from our employees to external stakeholders,further demonstrating the companys intangible value.Our resolute focus on surpassing ourselves and giving back to society has allowed us to achieve corporate social responsibility and build an inclusive
178、society.Together with the integration of resources from all disciplines,the company is on track to creating positive social impacts.2023 Activities to Cultivate Sustainable Culture at ASEH22OPERATING MODELSUSTAINABLEGOVERNANCEINTEGRITY AND ACCOUNTABILITYINNOVATION SERVICEGREEN MANUFACTURING AND LOW-
179、CARBON TRANSFORMATIONINCLUSIVE WORKPLACERESPONSIBLE PROCUREMENTCORPORATE CITIZENSHIPAPPENDIX2023202202040608010095.690.287.197.992.090.685.593.897.289.595.289.889.985.587.283.775808590951009587909398858996LaborHealth and SafetyEnvironmentEthicsLaborHealth and SafetyEnvironmentEthicsTaiwanChinaRest o
180、f AsiaOthersAs a global leader in semiconductor packaging and testing,and system integration,ASEH is committed to environmental protection and compliance to the highest ethical standards.As a member of the RBA(Responsible Business Alliance),all our manufacturing facilities participate in the annual
181、RBA Self-Assessment Questionnaire(SAQ)to evaluate specific inherent risk areas in labor,health and safety,environment,and ethics.2023 our manufacturing facilities scored over 91 points on average.The RBA VAP(Validated Assessment Process)was initiated by the ASEH Corporate Sustainability Committee(CS
182、C)since 2017,and was implemented across all our manufacturing facilities.Audits were conducted by independent third-party firms to identify risks and drive improvements and robust management systems for labor,ethics,health,safety,and environmental conditions in the supply chain.Our global locations
183、include Taiwan,China,Japan,South Korea,Singapore,Malaysia,Vietnam,the United States and Mexico.As of 2023,23 of our facilities have completed the RBA VAP.Customers can request the completed audit reports via the“RBA-Online”platform.Average RBA SAQ scorePercentage of RBA VAP-certified facilities glob
184、allyAvailability of audit reports to customers via the RBA-Online platformAverage SAQ scores(by category)Average SAQ scores in 2023(by region)92%191100%1 ASE Shanghai(Material)and ISE Labs China do not complete RBA VAP23OPERATING MODELSUSTAINABLEGOVERNANCEINTEGRITY AND ACCOUNTABILITYINNOVATION SERVI
185、CEGREEN MANUFACTURING AND LOW-CARBON TRANSFORMATIONINCLUSIVE WORKPLACERESPONSIBLE PROCUREMENTCORPORATE CITIZENSHIPAPPENDIXSharing and Diffusion of Intangible Knowledge to the SocietyCircularInclusiveLow CarbonCollaborativeHuman CapitalDevelopment&ManagementInfluence and Value CreationCircular Design
186、Energy Resources RecyclingWaste as a Valuable ResourceCircular Economy in Value ChainsEnvironmental ConservationIndustry-academia CollaborationsCommunity EngagementPublic AdvocacyDecarbonized Products and ServicesLow-carbon ManufacturingAdaptation and ResilienceGreen/Renewable Energy InvestmentSmart
187、 ProcurementStrategic PartnershipSupply Chain Management Go High TechEnvironmental EducationIntegrateInnovateExpandDisruptive InnovationCollaborative InnovationInclusive InnovationGreen Innovation2.2 Sustainability Strategies Strategy-setting is the key to achieving long-term sustainability targets
188、that tackle global climate challenges,uncertainties in the energy supply,and risks related to supply shortages of water,raw materials and other resources faced by businesses.To that end,ASEH has established four strategic sustainability pillars:Low Carbon,Circular,Inclusive and Collaborative,to help
189、 identify opportunities and growth drivers.We are committed to the creation of sustainable value and,to extending our strategic influence through external stakeholder communication and joint efforts with various interest groups to achieve a virtuous cycle of sustainability.24OPERATING MODELSUSTAINAB
190、LEGOVERNANCEINTEGRITY AND ACCOUNTABILITYINNOVATION SERVICEGREEN MANUFACTURING AND LOW-CARBON TRANSFORMATIONINCLUSIVE WORKPLACERESPONSIBLE PROCUREMENTCORPORATE CITIZENSHIPAPPENDIXSustainability Vision In our annual CSC Meeting,we review the achievement rates of our sustainability goals,and disclose t
191、he progress toward goals and the status of projects,providing visibility to employees,partners,customers and the general public.In 2023,we established our long-term sustainability targets for 2030 based on major sustainability topics and their relative importance to our business operations.These tar
192、gets serve to strengthen the correlation between the SDGs and our sustainability strategies,leading to the ultimate fulfillment of ASEHs commitment to corporate social responsibility.Strategic Approach and Goals of Key Issues DimensionsKey IssuesBusiness Impact on ASEHStrategic Approach2030 TargetPr
193、ogress/StatusIntegrity and AccountabilityRegulatory ComplianceEnsuring corporate compliance with all applicable laws is an important aspect of sustainability management.Operational and financial risks can be mitigated through a robust system of preventive measures.Implementing effective regulatory c
194、ompliance system:Strengthen the process for identification of regulatory requirements and reinforcing education to increase employee awareness of regulatory requirements.Cases involving violations by ASEH:0 Major cases involving violations by ASEH subsidiaries:0Business EthicsEstablishing norms of b
195、usiness conduct and ethics,and creating an honest and responsible culture are key to our long-term business success.Implement business conduct and ethics-related policies and regulations:Continue to promote education and training,commit to comply with ethical standards in all ASEH business activitie
196、s,and ensure the effectiveness of reporting systems by audit.Employee training coverage:100%Subsidiary roll-out coverage:100%InformationSecurityManagementEnsure the confidentiality,integrity and reliability of the companys information assets and compliance with relevant laws and regulations in order
197、 to further gain customers trust,elevate the companys competitive advantage and maintain the stability of sustainable business operations.Enhance information security governance:Identify internal and external information security management risks,prevent or mitigate the business impact of informatio
198、n security incidents,provide regular employee education and training,and raise employee awareness to improve the security of business operations.Major information security incidents:0 NIST CSF information security maturity assessment coverage rate:100%Percentage of employees receiving information se
199、curity education and training:100%Innovation ServiceInnovation Management and Sustainable ManufacturingContinuous innovation of technologies lower costs,improve efficiency,thereby reducing resource consumption and energy consumption.At the same time,business model innovation on the value chain can i
200、ncrease ASEHs core competitiveness and enable expansion capacity.Set up a patent reward program to encourage patent applications,that will strengthen the companys operations and IP portfolio.Establish patent applications as the Key Performance Indicator of the Annual Objective Deployment(AOD).9,000
201、patents granted1 Scope of product Life Cycle Assessment(LCA):50%Customer Relationship ManagementGood customer relationship management helps to improve our customers satisfaction and loyalty,thereby increasing our profit and core competitiveness.Continuously enhance customer communication:Providing d
202、iverse communications channels to enable instant interaction and communication with customers;enhance information security management to ensure the confidentiality and integrity of customer proprietary information.Customer satisfaction:90%On ScheduleRoom for Improvement1 The number of approved paten
203、ts includes the number of abandoned patents and expired patents25OPERATING MODELSUSTAINABLEGOVERNANCEINTEGRITY AND ACCOUNTABILITYINNOVATION SERVICEGREEN MANUFACTURING AND LOW-CARBON TRANSFORMATIONINCLUSIVE WORKPLACERESPONSIBLE PROCUREMENTCORPORATE CITIZENSHIPAPPENDIX1 In 2023,water withdrawal intens
204、ity decreased by 46%compared to 2015,surpassing the long-term goal of a 15%reduction by 2030.Therefore,the long-term goal has been increased from 15%to 52%2 In 2023,Hazardous-waste intensity decreased by 58%compared to 2015,surpassing the long-term goal of a 15%reduction by 2030.Therefore,the long-t
205、erm goal has been increased from 15%to 61%DimensionsKey IssuesBusiness Impact on ASEHStrategic Approach2030 TargetProgress/StatusGreen Manufacturing and Low-carbon TransformationEnergy ManagementUse of low carbon and diverse energy sources and smart energy management will increase energy efficiency,
206、reduce GHG emissions,and lower operational risks.Increase the use of clean/renewable energy.Continue to improve energy management:Establish standardized management systems through ISO 50001 to improve energy efficiency,and build smart energy management systems to facilitate precise control and lower
207、 standby mode energy consumption.Adopting an energy saving plan to decrease annual power consumption by more than 2%Renewable energy to account for 42%of total energy consumption ISO 50001 coverage in manufacturing facilities:100%Climate StrategyClimate change is a major global environmental issue.A
208、s ASEH continues to expand,the company becomes increasingly energy-dependent and faces growing pressure from customers,government and other stakeholders to increase its use of renewable energy.Reduce GHG emissions&provide green manufacturing services:Green facilities(efficient building designs)Effic
209、ient use of energy resources Purchase and use of clean/renewable energy and RECs Green product designs GHG emissions inventory coverage of the manufacturing facilities:100%GHG intensity(GHG emissions per revenue):achieve 15%reduction compared with 2015 Absolute GHG emissions reduction target:Reduce
210、Scopes 1 and 2 emissions by 35%with 2016 as baseline and Scope 3 emission by 15%with 2020 as baselineWater Resource ManagementEfficient management and use of water resources to alleviate local water stress,increase corporate sustainable operation resilience and boost the companys competitive strengt
211、h.Establish a Sustainable Water Efficiency Management System:Establish a systematic management model based on ISO 46001,conduct water review and set management goals and indicators,use reduction,replacement or reuse methods to continuously optimize water efficiency,reduce operating costs and protect
212、 global water resources.Day(s)of production shutdown in Taiwan facilities due to phase 3 water rationing(30%volume reduction of water supply):0 Water use intensity(water use per revenue):achieve 52%1 reduction compared with 2015Waste and CircularImproving material utilization rate to reduce waste pr
213、oduction and lessen the environmental impact of the companys operations.Enhancing source reduction in waste management:Identify recyclable raw materials and moving towards minimizing waste through a circular model.General waste recycling rate:90%Hazardous-waste intensity(hazardous waste generated pe
214、r revenue):achieve 61%2 reduction compared with 201526OPERATING MODELSUSTAINABLEGOVERNANCEINTEGRITY AND ACCOUNTABILITYINNOVATION SERVICEGREEN MANUFACTURING AND LOW-CARBON TRANSFORMATIONINCLUSIVE WORKPLACERESPONSIBLE PROCUREMENTCORPORATE CITIZENSHIPAPPENDIXDimensionsKey IssuesBusiness Impact on ASEHS
215、trategic Approach2030 TargetProgress/StatusInclusiveWorkplaceTalent Attraction and RetentionPositive labor relations can promote organizational harmony,increase employee identification with the company,support the companys global competitiveness,and maintain its competitive advantages.Implement empl
216、oyee engagement survey and feedback mechanisms:Besides encouraging employees to be proactive in company activities,we understand employees opinions by using employee engagement surveys,and offer competitive compensation and benefit programs.Deployment of employee engagement survey every 2 years:Resu
217、lt of employee engagement survey:85%Employee coverage:95%Overall turnover rate:75%Rate of Open Positions Filled by Internal Candidates:50%Diversity and InclusionEstablishing a diversified,equal,inclusive,and friendly workplace that respects the differences and uniqueness of employees to generate pos
218、itive impacts on the companys operations.Building a diversified and open workplace:Promoting long-term plans for training and cultivating female managers and enhancing the technology competence of female employees as well as their knowledge in science,technology,engineering,and mathematics(STEM).Est
219、ablishing a diversified,equal,inclusive,and friendly workplace that respects employees uniqueness and differences.Female employee in top management positions:15%Human RightsUpholding fundamental rights of employees as well as creating an environment that guarantees human rights are essential for a s
220、ustainable business.Protection of human rights:Prohibition of forced labor,child labor,discrimination and harassment;ensuring rights of freedom of association and privacy;provision of reasonable working hours and appropriate compensation and benefits.Major regulatory violations:0Occupational Health
221、and SafetyHaving an advanced and proactive health and safety management system is conducive to reducing absenteeism and improving productivity and quality.Continuously improve health and safety management system:Make all reasonable efforts to prevent accidents and promote the physical and mental hea
222、lth of employees by shaping a corporate safety culture where the safety and health of all employees are safeguarded.Disabling Frequency Rate(F.R.):0.5 Disabling Severity Rate(S.R.):9 Major injury and occupational disease:0 case Employee absenteeism rate:2.3%Responsible ProcurementSustainable Supply
223、ChainEstablishing a sustainable supply chain is a win-win strategy that strengthens the protection of our suppliers employees and assets and indirectly improves our competitiveness.Ensure supply chains sustainable development:Establish partnerships with our suppliers to ensure that they have their o
224、wn sustainable development plans,which include providing a safe working environment,treating employees with respect and dignity,and maintaining ethical standards and environmental responsibility.Signing of Code of Conduct Agreement and completion of sustainability risk self-assessment:100%for new su
225、ppliers Completion of sustainability risk survey:100%for all Tier-1 suppliers Over 50%for non Tier-1 suppliers Completion of sustainability audits conducted:100 Tier-1 suppliers 100%for high-risk Tier-1 suppliersCorporate CitizenshipSocial InvolvementActive community development through strategic ch
226、aritable and educational programs,and social work helps to build positive and constructive relationships at the local level,strengthen our social license to operate and create a well-educated workforce for future recruitment.Social involvement strategies:Environmental Conservation,Industry-academia
227、Collaborations,Community Engagement and Public Advocacy.Over 150 industry-academia collaboration projects on environmental technology Organizing semiconductor courses for 2,000+students Over 2,000 disadvantaged students attending the after school program Offering financial aid to 95,000+school child
228、ren from underprivileged families Advocating 25+semiconductor industry-related regulatory initiatives27OPERATING MODELSUSTAINABLEGOVERNANCEINTEGRITY AND ACCOUNTABILITYINNOVATION SERVICEGREEN MANUFACTURING AND LOW-CARBON TRANSFORMATIONINCLUSIVE WORKPLACERESPONSIBLE PROCUREMENTCORPORATE CITIZENSHIPAPP
229、ENDIX2.3 UN Sustainable Development Goals and Sustainable Values AssessmentASEH is building upon its technology leadership to steer the semiconductor industry towards greater sustainability.Since 2017,we have adopted the Total Impact Measurement and Management(TIMM)framework and Social Return on Inv
230、estment(SROI)analysis to assess the social impacts and operational risks of the companys business activities using monetary valuation tools.In 2018,we began referencing the United Nations“Integrating the SDGs into Corporate Reporting:A Practical Guide”to map out sustainable development goals(SDGs)an
231、d sub-targets that need to be actively addressed.In 2019,we used the SDG Compass Inventory of Business Indicators to examine the positive and negative impacts of our four major SDGs and the outcomes of our actions.In 2020,we further applied sustainable value assessment used internally to the value c
232、hain so as to understand and analyze the impact of value chain activities on the environment and society.In 2022,we associate the monetized outcomes of positive and negative impacts with significant issues.This information will then be provided to the CSC to serve as references for the performing of
233、 weighing and comparisons in the value creation decision-making process.By examining and analyzing the sustainability outcomes of actions by ASEH subsidiaries,we have been able to develop action plans and policies for improvements and reduce the impact of potential risks.As such,we are able to fulfi
234、ll our vision of promoting the United Nations 2030 SDGs via our own core competencies.Major ASEH Valuation Milestonesunit:US$millionUS$9,1622019ASE USI SPIL US$6,6402017ASE USI US$8,1922018ASE USI SPIL US$11,9322020ASE USI SPIL US$15,1182021ASE USI SPIL US$15,13012022ASE USI SPILUS$12,4622023ASE USI
235、 SPIL Use of the SDG Compass Inventory of Business Indicators to redefine 2030 sustainable development strategies to measure the positive and negative impacts of SDGs Associate the monetized outcomes of positive and negative impacts with significant issues Analysis of ASEHs highly relevant and activ
236、ely addressed SDGs using the United Nations Global Compacts Integrating the SDGs into Corporate Reporting:A Practical Guide.Expansion of scope to include SPIL Extend sustainable value assessment to the value chain Adoption of TIMM and SROI valuation tools1 Due to changes in the assessment basis of e
237、nvironmental indicators,the impact value for the year 2022 had been recalculated to facilitate comparison between the two years28OPERATING MODELSUSTAINABLEGOVERNANCEINTEGRITY AND ACCOUNTABILITYINNOVATION SERVICEGREEN MANUFACTURING AND LOW-CARBON TRANSFORMATIONINCLUSIVE WORKPLACERESPONSIBLE PROCUREME
238、NTCORPORATE CITIZENSHIPAPPENDIXLow CarbonCircularInclusiveCollaborativeGovernmentUS$4,831US$-340US$7,348US$12,462US$623CommunitySuppliersNGOsShareholdersCustomersEmployeesIntegrateresources acrossorganizationalboundaryExpandIndustry influencethrough scale upInnovatevalue differentiationthrough techn
239、ologySocial ImpactTax ImpactEconomicImpactEnvironmentalImpact2023 ASEHSustainableValueASEHSustainable Strategyunit:US$millionASEH Valuation Model29OPERATING MODELSUSTAINABLEGOVERNANCEINTEGRITY AND ACCOUNTABILITYINNOVATION SERVICEGREEN MANUFACTURING AND LOW-CARBON TRANSFORMATIONINCLUSIVE WORKPLACERES
240、PONSIBLE PROCUREMENTCORPORATE CITIZENSHIPAPPENDIXThe relationship diagram of ASEH value impact and significant issueEconomicTaxEnvironmentalSocialRegulatory complianceIntangiblesProfitsInvestmentPayrollOther taxesProfit taxesWater pollutionGreenhouse gasesWater useWasteOther air emissionsTree planti
241、ngBiodiversityRecycle waterSocial cohensionEducationEmployee health and safetyEmployee engagement and developmentPartnershipBusiness ethics/Customer relationship management/Information security managementInnovation management and sustainable manufacturingTalent attraction and retentionRegulatory com
242、plianceWater resource managementEnergy management/Climate strategyWaste and circularAir pollution preventionClimate strategySocial involvementOccupational health and safetyHuman rights/Diversity and inclusion/Talent developmentSustainable supply chainTIMM Evaluation DimensionsImpact Measurement Indi
243、catorsSustainability Key Issues30OPERATING MODELSUSTAINABLEGOVERNANCEINTEGRITY AND ACCOUNTABILITYINNOVATION SERVICEGREEN MANUFACTURING AND LOW-CARBON TRANSFORMATIONINCLUSIVE WORKPLACERESPONSIBLE PROCUREMENTCORPORATE CITIZENSHIPAPPENDIXContributions to Global SDGsWe adopted sustainability management
244、measures for prioritized SDGs to generate more positive impacts and contributions.In 2023,our business activities help boost GDP and local economies while at the same time,our business returns are invested into employee benefits,social welfare,renewable energy and biodiversity to give back to societ
245、y,therefore,can result in positive impact on the SDGs of Decent Work and Economic Growth,Quality Education,Responsible Consumption and Production,Life below Water and Life on Land in terms of sustainable management.Demands on environmental resources in our business operations can result in negative
246、impacts on the SDGs of Affordable and Clean Energy,Climate Action,and Clean Water and Sanitation.We have therefore committed ourselves to mitigating these impacts by focusing on sustainability programs through our Low Carbon and Circular strategies.In 2023,we are refining our goals for 2030 based on
247、 our four major sustainability strategies,so as to fulfill our commitment toward realizing these SDGs.unit:US$millionunit:US$million1 Includes corporate volunteer cost of US$95,165131OPERATING MODELSUSTAINABLEGOVERNANCEINTEGRITY AND ACCOUNTABILITYINNOVATION SERVICEGREEN MANUFACTURING AND LOW-CARBON
248、TRANSFORMATIONINCLUSIVE WORKPLACERESPONSIBLE PROCUREMENTCORPORATE CITIZENSHIPAPPENDIX-2,00002,0004,0006,0008,00010,0004,8316,419-340-3506235948,4677,348-3000-2500-2000-1500-1000-5000-402.0-410.0-523.9-239.6-2,522.3-2,112.22022202220232023unit:US$millionunit:US$millionSocialDownstream1ASEHs Operation
249、Upstream2022-2023 ASEH Sustainable Values2022-2023 Greenhouse Gas Value Chain OutcomesEnvironmentalTaxEconomicSustainability Value and ImpactsASEH adopted the TIMM framework for sustainability valuation to quantify the sustainable value of the companys impacts in the economic,tax,environmental and s
250、ocial dimensions.In 2023,ASEH generated US$12,462 million worth of sustainable value for stakeholders.Economic and tax dimensions:In 2023,ASEH recorded a decline in packaging,testing,and EMS revenue due to the softening of the overall semiconductor industry and electronics market performance.This ha
251、s in turn reduced our profits and the amount of employee bonus payouts.As a result,the overall economic value generated dropped by 13%from the previous year.Notwithstanding the decline in economic value,we expanded our investment in R&D and procurement of capital equipment during the course of the y
252、ear,to maintain the companys market leadership.These activities generated a 5.3%increase in the value of our economic investments and a 4.3%increase in the value of our intangible assets,demonstrating our determination to improve our performance and product quality despite challenging circumstances.
253、Tax expenditures in 2023 increased by 4.8%over the previous year due to earnings growth in 2022 and tax payments on the disposal of a subsidiary in Korea.Environmental dimension:Two main sources of environmental impacts were water resource consumption during the production process and greenhouse gas
254、ses emitted from the use of electricity.Our renewable energy usage reached 20%of the total electricity consumption in 2023.On the other hand,we adopted the three major strategies of reduction,reuse,and recycling in the consumption of water resources.Investments were made in every plant to improve wa
255、ter recycling,thereby reducing environmental impacts caused by water consumption and increasing economic benefits.Since two manufacturing sites were included in the scope of calculation this year,negative effects of water consumption and wastewater pollution slightly increased by 1%compared to 2022,
256、and the negative environmental impact of our operations increased by 2%compared to 2022.In the future,we will actively invest in environmental protection and fulfill our pledge to use the proceeds raised through our green bonds to construct commercial used green facilities and establish water recycl
257、ing plants,water treatment plants,and a real-time waste water monitoring system that would mitigate environmental impacts and promote human health.In the meanwhile,we continued to invest in ecological conservation,and therefore the positive impact of ecological conservation in 2023 increased signifi
258、cantly by 48%compared to last year.Social dimension:The overall 2023 value of our social impact fell by 24.7%compared with 2022.This was largely caused by a lacklustre economic environment that resulted in a 26%decrease in ASEHs annual local procurement amount.Despite a challenging year,the company
259、continued to increase its investments in social support for the community.Excluding the value of corporate volunteer contributions,investments in social cohesion activities increased by 21.87%in 2023 over the previous year.Our active contribution to social welfare programs help to improve the well-b
260、eing of the public and the community,as well as protect environmental resources.In addition,we had increased our investments in environmental education and job training by 53%.1 Greenhouse gas emissions from investments in the downstream value chain have been included in calculations since 202232OPE
261、RATING MODELSUSTAINABLEGOVERNANCEINTEGRITY AND ACCOUNTABILITYINNOVATION SERVICEGREEN MANUFACTURING AND LOW-CARBON TRANSFORMATIONINCLUSIVE WORKPLACERESPONSIBLE PROCUREMENTCORPORATE CITIZENSHIPAPPENDIXEnvironmental ImpactIn 2023,ASEHs overall environmental impact of US$-340 million is mainly attribute
262、d to resource consumption and environmental emissions from its business activities.We have paid close attention to the energy and resource efficiency of our facilities and put in place environmental programs to generate positive impacts and mitigate the external cost on the environment.Although two
263、manufacturing sites were included in the scope of calculation this year,the overall impact(negative and positive)has decreased by 3%compared to US$-350 million in 2022.This reduction is mainly due to the annual operational impact of the industry and our continued efforts in implementing environmenta
264、l mitigation measures,which have mitigated the negative impact.We recorded significant reductions in negative impacts from other air emissions and water use,further demonstrating our resolution and relative success in renewable energy usage,facilitating air pollution control,increasing water resourc
265、e efficiency,and circular solutions in resource reduction.In 2023,we applied the SROI framework to quantify the impacts of our business operations and value chain activities on the environment based on SDG14 Life below Water and SDG15 Life on Land.ASEH remains committed to our low carbon mission and
266、 sustainability development,and will continuously expand the scope of our environment impact management.33OPERATING MODELSUSTAINABLEGOVERNANCEINTEGRITY AND ACCOUNTABILITYINNOVATION SERVICEGREEN MANUFACTURING AND LOW-CARBON TRANSFORMATIONINCLUSIVE WORKPLACERESPONSIBLE PROCUREMENTCORPORATE CITIZENSHIP
267、APPENDIXAssessment of environmental impacts in 20231InputOutputExternal ImpactIn response to industry inventory clearance and the impact of inflation,revenue has declined compared to 2022.However,ASEH continues to increase the proportion of renewable energy use.Our manufacturing operations are sprea
268、d across 9 regions including Taiwan,China,South Korea,Japan,Singapore,Malaysia,United States,Mexico,and Vietnam.The energy resource demands for our manufacturing operations are as follows:Resource Demand20222023Water resource consumption(megaliters)23,39921,468Non-renewable energy(MWh)3,571,7443,536
269、,828Renewable energy(MWh)819,863844,044Resource circulation investments(US$million)55.736.8Notes:decrease increaseASEH is committed to sustainable manufacturing by continuously increasing relevant investments in ecology and environment protection,and developing energy management mechanisms and pollu
270、tion control plans.We aim to maximize energy efficiency and increase product values,while reducing impacts on the environment.The environmental impact of our operations in 2023 is as follows:Impact Items20222023Greenhouse gas emissionsScope 1 emissions(tCO2e)90,99375,274 Scope 2 emissions(tCO2e)1,67
271、1,2421,649,347Scope 3 emissions(tCO2e)13,350,245 9,891,845 Air pollutant emissionsVolatile organic compound,sulfur oxide,nitrogen oxide and particulate matter emissions(tons)364327Waste disposalHazardous waste disposal(tons)12,4559,492Non-hazardous waste disposal(tons)10,7289,645Wastewater discharge
272、2Wastewater discharge(megaliters)17,46115,386ASEHs overall environmental impact in 2023 totaled US$-340 million.Assessed external impacts include employee and public health,property damage,financial losses,biodiversity,impacts to ecosystems,and natural capital losses and other impact pathways.The ma
273、jor SDGs affected by negative external impacts are SDG 6 Clean Water and Sanitation,SDG 7 Affordable and Clean Energy,SDG 12 Responsible Consumption and Production,SDG 13 Climate Action,SDG 14 Life below Water,and SDG 15 Life on Land.The overall positive environmental impact totaled US$162 million,w
274、hich is 12%higher than that of 2022.The net positive benefits related to water resources have increased by 27%,due to the increased amount of recycled process water and the significantly decreased number of pollutants in the wastewater.The value of negative environmental impact amounts to US$502 mil
275、lion,a 2%increase compared to 2022.The main reasons,in addition to inflation,are the addition of two manufacturing sites within the scope,which led to an increase in the pollutant content of water pollution.Through a green manufacturing process,we strive to reduce greenhouse gas emissions,waste,and
276、water pollution.These measures resulted in positive contributions to the SDG 6,SDG 12,and SDG 13.ASEH has actively launched biodiversity-related activities this year.Biodiversity conservation is a key focus at ASEH,and the company is taking long-term actions to protect marine habitats and species,an
277、d the terrestrial ecosystem through various conservation programs including conservation and restoration of Chinese box turtle,adoption of parks,and tree planting and afforestation projects The company has planted more than 303 thousand trees,creating a positive ecological impact value of US$6.4 mil
278、lion.The monetized value of the indirect environmental impact of value chain greenhouse gas emissions amounted to US$-2,352 million,a 23%decrease compared to 2022.The main reason for the reduction is that we used the strategies of purchasing low-carbon raw materials and equipment,building low-carbon
279、 factories,and adopting green transportation to reduce impacts caused by product and service procurement.Environmental Impact20222023NegativeGreenhouse gas emissions3ASEH operations-402.0-410.0Products and services-3,046.2-2,351.8 Air pollution-1.5-1.4Waste-6.4-5.4Water resource consumption-70.4-67.
280、5Water pollution-14.3-18.0PositiveWater recyclingWater conservation132.4138.8Water Pollution Reduction7.817.2Ecological conservationAfforestation0.62.0Biodiversity3.74.41 For more information on ASEHs sustainable values,please refer to ASEHs Total Impact Measurement and Management Report 2023 at htt
281、ps:/ Waste water pollutants include phenols,oils(extracted with n-hexane),cadmium,lead,total chromium,hexavalent chromium,copper,zinc,nickel,arsenic,silver and orthophosphate3 The source for GHG assessment methodology in 2022 and 2023 is Report on the Social Cost of Greenhouse Gases:Estimates Incorp
282、orating Recent Scientific Advances,USEPAunit:US$million 34OPERATING MODELSUSTAINABLEGOVERNANCEINTEGRITY AND ACCOUNTABILITYINNOVATION SERVICEGREEN MANUFACTURING AND LOW-CARBON TRANSFORMATIONINCLUSIVE WORKPLACERESPONSIBLE PROCUREMENTCORPORATE CITIZENSHIPAPPENDIXAssessment of social impacts in 2023Inpu
283、tOutputExternal ImpactDirect operations:Inputs directly related to the operations of ASEH and its subsidiaries include:We established a two-way communication mechanism with our suppliers,and we hold Annual Sustainability Forums,medium-and long-term sustainability capacity-building programs,sustainab
284、ility workshops,and regular education and training for them in order to promote sustainable cooperation and strengthen their resilience and ability to respond to sustainability trends and risks.Sustainability audits of 201 raw materials suppliers2 Procurement of 49.3%of raw materials from local supp
285、liers3 Supplier Sustainability Awards Comprehensive employee engagement survey Regular risk assessment and continuous improvement of occupational health and safety Investment of approximately US$3.3 million in employee health checkups Investment of approximately US$6.5 million in industry-academia o
286、ccupational trainingSupplier partnerships:Supplier audit results showed that 45%of nonconformities were related to occupational health and safety,23%were related to labor,20%were related to management systems,9%were related to environment,and 3%were related to ethics A total of over 5,500 attendees
287、participated in Annual Sustainability Forums and supplier educational training Invested a total of US$0.1 million into the Supplier Sustainability AwardEmployee engagement and development:Employee engagement surveys showed an engagement rate of 77%with an employee response rate of 95%Employee and co
288、ntractor health and safety:129 occupational injuries and 28 occupational diseases to employees and contractors 59,949 employees participated in health checkupsEducation:Conducted a total of 64 industry-academia projects on innovative semiconductor research and developmentSocial impact resulting dire
289、ctly from operations totaled US$4,808 million.Supplier partnerships:We used the cost approach valuation and contingent valuation methods to assess that the value generated totaled US$4,492 million.Although the overall factor dropped by 26%compared with 2022,one of the indicators,supplier education a
290、nd training,has increased by 68%in value compared with 2022 due to the increase in the number of suppliers participating in major education and training such as carbon inventory and sustainability forums.Employee engagement and development:Survey results showed that investment in human capital build
291、s sense of achievement,belonging in the workforce,psychological health,managerial ability,and cohesion of employees.Based on the degree of these outcomes,it was estimated that the social value generated was US$240 million.Employee and contractor health and safety:We used the cost approach valuation
292、to assess the positive and negative impacts of healthier work environments and occupational injury incidents.Positive impacts included the increased chance of disease recovery and reduced financial stress from medical costs due to employee health checkups and health insurance,which were assessed at
293、a value of US$45 million.Negative impacts included harm to employees and contractors physical,mental,and spiritual well-being to occupational injury incidents,which were assessed at a value US$-0.5 million Education:We used the value transfer method to assess the social value of industry academia oc
294、cupational training related to business activities,which totaled US$31.1 million.The major outcome was that industry academia cooperation will give talented graduates the opportunity to work at ASEH and also bring new talent into ASEH to improve the competitiveness of our talent pool.Indirect operat
295、ions:To promote social cohesion,ASEH and its subsidiaries organized public welfare activities and invested a total of approximately US$4.5 million in six categories:community development,community care,care for disadvantaged families,healthcare sponsorships,arts and culture sponsorships,and sports s
296、ponsorships Investment of US$1.2 million in education,including environmental education.Investment of US$0.6 million in other education A total of 182 outputs in social cohesion activities,including 27 in public development,50 in community care,62 in care for disadvantaged families,3 in healthcare s
297、ponsorships,29 in arts and culture sponsorships,and 11 in sports sponsorships A total of 66 outputs in education,including 42 in environmental education and 24 in occupational education We used the value transfer method to assess the social value of public welfare activities(excludes corporate volun
298、teer)that promote social cohesion,which totaled US$15.7 million.Of these activities,care for disadvantaged families accounted for the largest percentage at 35%,and arts and culture sponsorships accounts for 34%.The third is the care for community,which accounts for 16%.The three major outcomes were
299、as follows:increased self-identity of disadvantaged children,enhanced learning performance of disadvantaged children,and improvement in public knowledge about art,which improved the well-being of neighboring residents and the general public on the whole.We used the value transfer method to assess th
300、e social value of environmental and other education,which was estimated to be US$7.2 million.The major outcome was improved environmental awareness in the general public and their ability to incorporate eco-friendly actions and behavior into everyday activities.Social ImpactSocial impact assessment
301、allows ASEH to manage the sustainability values generated in areas including supplier partnerships,employee engagement and development,employee and contractor health and safety,and education and community cohesion.In 2023,ASEHs overall social impact totaled US$4,831 million,with US$4,808 million dir
302、ectly resulting from the companys operations1.The value is mainly attributable to supplier partnerships development and support.1 The value of social impacts resulting directly from the companys operations is calculated by monetizing social impacts.The calculations therefore excluded public welfare
303、activities and non-industry-academia educational projects2 Please refer to Chapter 7.3 of this report(Supply Chain Sustainability Management)3 Please refer to Chapter 7.2 of this report(Supply Chain Management Framework)35OPERATING MODELSUSTAINABLEGOVERNANCEINTEGRITY AND ACCOUNTABILITYINNOVATION SER
304、VICEGREEN MANUFACTURING AND LOW-CARBON TRANSFORMATIONINCLUSIVE WORKPLACERESPONSIBLE PROCUREMENTCORPORATE CITIZENSHIPAPPENDIX1To identify the relevance and importance of various issues,we referenced international standards and regulations as well as sustainable investment ratings and communicated wit
305、h our global semiconductor industry peers and stakeholders.We compiled a list of 21 sustainability issues that were related to our company.This year,we added“Risk and Crisis Management issues”to the list,changed“Climate Change”to“Climate Strategies”and dropped“Work from home.”International standards
306、 and regulations:GRI Standards,Sustainability Accounting Standards Board(SASB),SDGs,RBA,Task Force on Climate-related Financial Disclosures(TCFD),and Task Force on Nature-related Financial Disclosures(TNFD)Sustainability investment assessments:Dow Jones Sustainability Indices(DJSI),Climate Disclosur
307、e Project(CDP),MSCI ESG Index,and FTSE4Good Emerging Index Global semiconductor industry:Benchmarking sustainability policies and practices from semiconductor companies listed on the DJSI.Stakeholder engagement:Analyses of online media reports and regular/occasional stakeholder communication to eval
308、uate stakeholders perceptions of sustainability issues.Step 1:Inclusivity2.4 Materiality Assessments and Stakeholder CommunicationEvery year,ASEH develops a materiality execution framework that identifies major sustainability issues and develops economic,environmental,and social impact assessment me
309、thodologies by referencing major standards organizations like the 2021 GRI Universal Standards GRI3:Material Topics,the AA 1000 Stakeholder Engagement Standard(SES),the Value Balancing Alliance(VBA),the Harvard Business Schools Impact-Weighted Accounts research project,the London Benchmarking Group(
310、LBG),and incorporating the concept of Double Materiality proposed by the European Financial Reporting Advisory Group(EFRAG).Applying the ERM approach to integrate risks and materiality allows the assessment of the companys organizational resilience.In addition,based on the major issues identified th
311、rough the preceding process,we are able to develop long-term sustainable goals and strategies.During the preparation of our 2023 Corporate Sustainability Report,we collected feedback from 2,298 stakeholders to understand the degree of concern on sustainability at ASEH.Led by the companys senior mana
312、gement,a total of 175 colleagues from the Corporate Sustainability Committee(CSC)of the subsidiary companies participated in identifying the degree of impact of each sustainability issue on the operations of the company.The CSC members,the supervisors of functional units,and the responsible personne
313、l of our other subsidiary companies worked together to identify the impact of our operations on the sustainable development of the economy,environment and society(people and human rights).The company referenced the material issues identified in the previous year,and reported to the Board of director
314、s on the final 16 issues selected as the basis for our long-term sustainability goals from now to 2030.The overall materiality assessment process is detailed below:Environmental issuesSocial issuesEconomic issues69636OPERATING MODELSUSTAINABLEGOVERNANCEINTEGRITY AND ACCOUNTABILITYINNOVATION SERVICEG
315、REEN MANUFACTURING AND LOW-CARBON TRANSFORMATIONINCLUSIVE WORKPLACERESPONSIBLE PROCUREMENTCORPORATE CITIZENSHIPAPPENDIX234We comply with the GRI Standards and base the materiality of issues on their importance to stakeholders,impact on the companys operations,and impact on the external environment.W
316、e collect our stakeholders feedback through daily communication and questionnaires to help senior managers determine the impact of various issues on company operations.Functional unit supervisors are invited to identify sustainability-related impact and determine the materiality and relevance of iss
317、ues.Based on the results of the materiality assessments and using the GRI indicators,we fulfilled the disclosure requirements of our stakeholders regarding sustainability-related information.We continue to increase transparency with regard to our sustainability issues and efforts across various comm
318、unication platforms such as our Sustainability reports,annual reports,TNFD report,TCFD report and website,covering aspects such as our policies,organization,practices,performance,and goals.Commitment,actions,and goals are key factors through which we demonstrate our impact.We monitor and track the a
319、chievement rates of our goals,tying sustainability-related performance to the remuneration of our senior managers.We view corporate sustainability as one of our core operational factors,and strive for a corporate culture that values and practices sustainability from the top down.The degree of concer
320、n from stakeholders is a key factor in the process of determining the significance of our material issues,and the process is an important channel for us to communicate with our external stakeholders.This year,we designed a questionnaire on stakeholders degree of concern about sustainability issues t
321、hat drew a total of 2,904 stakeholder responses.The respondents included employees(1,589),customers(105),shareholders(31),suppliers/contractors(889)and members of the government(53),industry unions/associations(32),NGOs(36),media(31),and communities(138).We derived 23 additional sub-issues(21 GRI-sp
322、ecific and 2 ASE Holdings-specific issues)for disclosure from the 16 material issues.Other issues with lower priority were also disclosed in the report.The CSC initially identified 16 material topics that were of importance to stakeholders and impact the companys sustainable development and/or the e
323、xternal environment.After further deliberation,the assessment ultimately yielded 16 material issues.The CSC later confirmed these issues as material issues.Consequently,the issues formed the basis for the disclosures in our 2023 Sustainability Report and for formulating internal sustainable manageme
324、nt goals.To elevate the impact of corporate sustainability,we have made commitments regarding various material issues and formulated 41 long-term sustainability goals for 2030.In addition,we promote and implement sustainability efforts at our factories worldwide every year.Every year,the CSC tracks
325、the progress of its goal completion via progress reports presented by colleagues from the relevant business units.Our three major subsidiary companies also organize internal CSCs on a regular basis to manage and track their progress and sustainability trends.Integrating care for the environment,soci
326、ety,and governance(ESG)into core operations is a key driver of corporate sustainability.Therefore,we had a 175-member team of senior managers and CSC members participate in evaluating the impact of each sustainability issue on our revenue,risks,customer satisfaction,and employees organizational iden
327、tification,and ranking the level of each issues importance according to its impact.We integrated the economic,environmental,and social impact assessment methodologies developed by the VBA,the Impact-Weighted Accounts research project of the Harvard Business School,and the LBG to identify 5 external
328、economic impact,6 external environmental impact,and 10 social impact external impact related to our company.Additionally,we formed a team made up of 38 supervisors from functional units and the core sustainability team that identified 11 material external impact related to our company.Step 2:Materia
329、lityStep 3:ResponsivenessStep 4:ImpactStakeholders concernsMaterial topicsSub-issuesCommittees Long-term goals2,9041623441Participants in the operational impact survey175 38 Participants in the sustainable development impact survey37OPERATING MODELSUSTAINABLEGOVERNANCEINTEGRITY AND ACCOUNTABILITYINN
330、OVATION SERVICEGREEN MANUFACTURING AND LOW-CARBON TRANSFORMATIONINCLUSIVE WORKPLACERESPONSIBLE PROCUREMENTCORPORATE CITIZENSHIPAPPENDIXASEH Impact AssessmentMonetary Valuation(TIMM)DimensionsImpactsImpactAttributesImpact CausesTargets/AreasActivities/OutputsValues(US$million)Impacted Sustainability
331、Issues TaxProfit TaxesPositiveOperationSocietyProfit Taxes505.4Financial PerformanceOther TaxesPositiveOperationSocietyOther Taxes118.0Financial PerformanceEconomicPayrollPositiveOperationInternal EmployeesSalary Benefits3,314.6Talent Attraction and RetentionProfitsPositiveOperationInternal Employee
332、sProfit Distribution1,218.4Innovation Management and Sustainable ManufacturingInvestmentPositiveOperationSuppliersCapital Expenditures2,034.4Innovation Management and Sustainable ManufacturingIntangiblesPositiveOperationSupply Chain/Employees/CustomersR&D Activities and Intellectual Property Purchas
333、es960.3Innovation Management and Sustainable Climate StrategyEnvironmentalGreenhouse GasesNegativeOperationEnvironmentGreenhouse Gas Emissions-410.0Climate Strategy/Energy ManagementOther Air EmissionsNegativeOperationEnvironmentAir Pollutant Emissions-1.4Air Pollution PreventionWasteNegativeOperationEnvironmentHazardous and Non-hazardous Waste-5.4Waste and CircularWater UseNegativeOperationEnviro