Environmental Protection

▪ ChipMOS Energy Policy

Task Force on Climate-Related Financial Disclosures (TCFD)

Climate change has become a common challenge for global enterprises to promote sustainable development. To control the global warming within no more than 2 ºC and affect the opportunities and risks implied in enterprise capacity expansion and market opportunities are the challenges that enterprises must face up to and prepare in advance. ChipMOS is well aware of the importance of corporate action and shoulders the heavy responsibility of environmental protection. We refer to the framework of the Task Force on Climate-related Financial Disclosures (TCFD) issued by the Financial Stability Board (FSB), identify the management of ChipMOS climate change risks and opportunities, and further have a comprehensive understanding of the impact of climate change.

▼TCFD Framework

Identification of Climate Risk / Opportunity

In 2023, the members of the ESG Committee jointly reviewed, discussed and determined the maintenance of the climate change risks and opportunities that were identified in 2021. By adopting TCFD as the guiding principle, the risk topics cover transitional risks and entity risks, with a summary of risk categories including regulations and policies, market/ technology and disruption of operations. For carbon-related risks, there are a total of 48 items, four of which have been identified as major carbon risks, seven as moderate carbon risks. We have also identified 21 carbon opportunities, three of which are major opportunities and seven are moderate opportunities. In total, there are 69 risks and opportunities.

We rank the risks and opportunities according to the possible time of risk impact (short-term, medium-term and long-term), impact degree factors (finance, operation / manpower, law and goodwill), and finally identify four major carbon risks and three major carbon opportunities, for total seven major risks and opportunities, assess the potential financial impact, and develop relevant countermeasures and countermeasures, so as to mitigate the impacts of climate risks and grasp future business opportunities.

GHG Inventory

ChipMOS actively responds to the global trend of carbon reduction, brings mitigation and adaptation of climate change into important issues in operation management, and sets the Environmental Safety, Health and Energy Management Committee as the authority and responsibility function to promote carbon management issues. Since 2009, each fab has independently implemented check, established a GHG emission check, and identified key GHG emissions sources in the production process for management. We conduct verification every year in accordance with ISO 14064-1 to ensure data quality and provide credible carbon management information to stakeholders. In 2020, the planned implementation was transformed into ISO14064-1:2018, which would more accurately and deeply control the carbon emission management inside and outside the organization.

In 2023, the Company's GHG emissions (Category 1 + Category 2) were about 235,901.50 tonnes of CO2e; relevant analyses showed that out of ChipMOS’ total GHG emissions, 98.08% are Category 2 emissions generated by purchased power, Category 1 emissions reached 1.92% of the total emissions mainly due to safety and protection of the high-voltage equipment at Hukou fab. And the use of 907.2 tCO2e of sulfur hexafluoride (SF6). No perfluorinated compounds (PFCs) were used by the fabs. In light of ChipMOS’ emission structure, an energy-saving team has been established internally, to actively conduct energy-saving and carbon reduction management programs for various energy-consuming equipment. In addition to meeting the 1% energy saving requirement of the Bureau of Energy every year, the Company also replaced outdated equipment and adjust control parameters, to improve energy efficiency.

ChipMOS regularly conducts Greenhouse Gas Inventory and continuous reduction within the organizational boundaries every year. Since 2021, we have taken the initiative to add Category 3 and Category 4 verification in accordance with ISO 14064-1:2018. The projects concerned include: indirect GHG emissions generated by transportation (including "upstream / downstream transportation and distribution of goods", "business travel activities") and indirect GHG emissions generated by products used by the organization (including "purchased goods" and "solid / liquid waste disposal activities"), so as to find out the best feasible carbon reduction focus and actively invest in reducing GHG emissions.

Energy Management and Efficiency

Since 2012, we have systematically launched energy-saving actions, continuously introduced energy-saving technologies and equipment, and voluntarily introduced ISO management system. In 2020, we promoted use of renewable energy more actively, built solar power facilities, and continued increasing the proportion of the renewable energy usage. In 2023, we introduced the EMS (Energy Management System) to reduce unnecessary energy consumption, improved and integrated the production equipment to save energy, and optimized energy supply by inventorying the facilities with significant energy consumption, integrating front-end and back-end energy management, and connecting systems in series.

In 2023, the energy-saving team collaborated with different departments to continuously enhance energy-saving and carbon reduction actions, including 4 major energy-saving categories: energy and resources reduction of equipment, smart energy saving, lighting energy saving, and optimization of operating conditions. The scope of energy saving was expanded to include the production equipment of the fab and comprehensively covered the Company's equipment. The specific measures include: intelligent control of the chilled water system, replacement of the chiller system, replacement of lamps with LED lamps, and optimization of semiconductor equipment, and reduction of CDA. All the personnel of the Company participated in the energy saving actions and implemented these effectively in the operations to make the best contribution to the environmental protection.

Renewable Energy

The outsourced power used in the manufacturing process is the most important source of our overall carbon footprint. Therefore, we are committed to reducing the generation of outsourced power and continue to invest in renewable energy. To support the government’s energy transition policy, in 2012, ChipMOS installed the solar energy panels on the roofs of Tainan fab., and signed the contract with Taipower for green power supply; subsequently, in 2019, the 2nd solar power generation system was built. In 2021, the whole fab. was set up in a unified plan to expand the use of renewable energy in the northern fab. In 2021, 4 additional solar power generation systems were completed on the roofs of our fabs, with the capability up to 990.45KW (Hsinchu fab., Hukou fab., Zhubei fab. 2 and Tainan fab.), and the Company obtained leased land at the end of 2022 to build 2 sets of solar power systems of 932.66 kW. Over the past 12 years, the accumulated solar power generation has reached up to 7,922,845 kWh, which can satisfy the monthly electricity consumption of nearly 23,371 households.

To actively achieve the carbon reduction goal, ChipMOS’ next stage of development planning focuses on the self-generation and self-consumption of solar energy. We achieved the target of building 3.85MW renewable energy at the end of 2023. By 2024, the Company intends to obtain an additional 3.14 MW of solar power capacity, bringing the total installed capacity to 6,990.45 kW. It is projected that by 2025, renewable energy will account for approximately 1.7% of our total electricity consumption. Once the in-house solar energy facility planning is complete, for the mid-and long term, the Company will assess the possibility of purchasing and developing other green energy sources, to realize the more ambitious reduction goal.

▼Statistics of Solar Power Generation

Notes： Calculated based on the average monthly power consumption of 339 kWh per household in 2022 announced by Taipower (data taken from the official website of Taipower)