Sustainability

Communication with Stakeholders

TSC values stakeholder engagement and, with reference to the five principles of the AA1000 Stakeholder Engagement Standard (SES), has identified seven major stakeholder groups: suppliers, customers, employees, investors, government agencies, media, and the general public. Through both regular and ad-hoc multi-channel communication with stakeholders, TSC seeks to understand the actual and potential impacts of its operations on these parties, using the insights gained as a basis for planning future preventive and mitigation measures. The results of stakeholder communication are reported annually to the Board of Directors by the Board Secretariat.

Stakeholder Engagement

Key Topics of Concern

  • Product Liability

Communication Frequency and Channels

  • Regular: Remote or on-site audit (Annually)
  • Ad hoc: Supplier conferences, EHS briefings for contractors, Surveys and RBA self-assessments

Communication Achievements in 2024

  • 159 suppliers signed the “Declaration of Non-use of Conflict Minerals”,
    with a signing rate of 91%, an increase of 1.4% from the previous year
  • Continued execution of online and on-site supplier audits; implemented
    a triennial audit plan for Tier-1 suppliers
  • All suppliers met TSC’s automotive quality requirements

Key Topics of Concern

  • Product Responsibility
  • Climate Strategy and Energy Management
  • Water Stewardship
  • Waste Management and Hazardous Substances Emission Management
  • Human Rights
  • Regulatory Compliance
  • Sustainable Supply Chain
  • Information Security Management

Communication Frequency and Channels

  • Regular: Customer Satisfaction Survey (Annually) ,Corporate Sustainability Report and Official Website
  • Ad hoc: Various types of communication and discussion meetings can be arranged based on customer requirements, Customer questionnaire responses (such as EcoVadis, Platform of
    Carbon Disclosure Project (CDP), SupplyOn, etc.), Customer Audit

Communication Achievements in 2024

  • Annual customer satisfaction survey score: 4.7 out of 5.
  • Ad hoc ESG communication meetings and questionnaire responses were
    conducted to continuously understand customer needs.

Key topics of Concern

  • Business Ethics and Integrity

Communication Frequency and Channels

    • Regular: Labor-management meetings (quarterly); Occupational health and safety meeting (quarterly); General employee meetings (annually) ;Employee satisfaction survey (annually) ;Performance review briefings (semi-annually)
    • Ad hoc: Employee Interviews; Employee feedback and harassment
      reporting mailbox; Departmental meetings

Communication Achievements in 2024

  • No employee complaints received in 2024
  • 86% participation in employee opinion survey; continued improvement in workplace environment
  • In 2024, a new HRM (Human Resource Management) System was implemented, incorporating automated calculation and verification mechanisms to prevent human error
  • Upholding the principle of “caring for employees,” TSC provided child care subsidies to 72 recipients and granted educational awards to 126 recipients in 2024

Key Topics of Concern

  • Business Ethics and Integrity
  • Regulatory Compliance
  • Innovative Product Management
  • Product Responsibility

Communication Frequency and Channels

  • Regular: Annual Shareholders’ Meeting, and Annual Report (Annually), Corporate Governance Evaluation System (Annually), Financial Statements (Quarterly), Investor Conference (Quarterly)
  • Ad hoc: Investor communication meetings (in-person
    or via phone); Domestic and international investment forums; Business performance updates on the company website; Material information announcements via the Market Observation Post System (MOPS)

Communication Achievements in 2024

  • Held 1 general shareholders’ meeting
  • Held 1 investor conference call, along with multiple one-on-one or group
    investor meetings via phone

Key Topics of Concern

  • Business Ethics and Integrity
  • Regulatory Compliance
  • Climate Strategy and Energy Management
  • Water Stewardship
  • Waste Management and
  • Hazardous Substances Emission
    Management
  • Social Engagement

Communication Frequency and Channels

  • Ad hoc: Official correspondence via documents and email; Assessments, evaluations, and audits; Various meetings (e.g., seminars, briefing sessions, forums)

Communication Achievements in 2024

  • Participated in annual corporate governance evaluations
  • Maintained smooth and active communication with the government on a regular and ad hoc basis, including attending promotional briefings to stay informed about relevant regulatory initiatives

Key Topics of Concern

  • Regulatory Compliance
  • Sustainable Supply Chain
  • Information Security Management
  • Risk Management
  • Innovative Product Management
  • Product Responsibility
  • Climate Strategy and Energy Management
  • Water Stewardship
  • Waste Management and Hazardous Substances Emission Management
  • Biodiversity
  • Talent Recruitment and Retention
  • Diversity and Inclusion
  • Occupational Health and Safety
  • Human Rights

Communication Frequency and Channels

  • Regular: Investor Conference
  • Ad hoc: Face-to-face and Telephone Interview, Company Official Website, Press Release, Social Media

Communication Achievements in 2024

  • Held 1 investor conference call, along with multiple one-on-one or group investor meetings via phone
  • Released 10 product news articles, 4 corporate news releases, and 6 event announcements

Key Topics of Concern

  • Regulatory Compliance
  • Sustainable Supply Chain
  • Information Security
    Management
  • Innovative Product Management
  • Product Responsibility
  • Climate Strategy and Energy Management
  • Waste Management and Hazardous Substances Emission
    Management
  • Biodiversity
  • Talent Recruitment and Retention
  • Diversity and Inclusion
  • Occupational Health and Safety
  • Human Rights

Communication Frequency and Channels

  • Regular: Invoice Donation
  • Ad hoc: Disaster relief donations, Lunch and tuition subsidies for underprivileged students, Blood donation campaigns

Communication Achievements in 2024

  • The Yilan Site and Lije Site collectively donated 150 uniform invoices to charitable organizations.
  • The Yilan Site, Lije Site, and Shandong Site jointly held blood donation drives, with a total of 108 employees participating.
  • At the group’s annual year-end banquet, a local performing arts group was invited to deliver the opening performance, demonstrating support for Taiwan’s indigenous drumming culture through concrete action.

Material Topic Identification

TSC follows the Global Reporting Initiative (GRI) Standards to establish its analytical process, conducting materiality analysis through four key steps: identification, evaluation, analysis and validation, and confirmation. This process assesses the actual and potential economic, environmental, and social impacts of its business operations, serving as the basis for planning and adjusting sustainability management strategies.

In 2024, TSC collected 44 valid internal and external stakeholder questionnaires to better understand stakeholder concerns. TSC will continue refining its materiality assessments and communication mechanisms. In 2024, six material topics were identified:

  • Business Ethics and Integrity
  • Sustainable Supply Chain
  • Innovative Product Management
  • Water Stewardship
  • Climate Strategy and Energy Management
  • Occupational Health and Safety

2024 Material Topic Matrix

In response to the GRI Material Topics 2021, TSC considered industry characteristics, geographic location, and organizational context to define both the positive and negative impacts of each sustainability issue. Using a risk management perspective, the significance of actual and potential impacts was identified.

TSC determined material and foundational topics based on the results of questionnaire scoring, which were aggregated through multiplication, weighting, and ranking, and visualized in a materiality matrix. The matrix uses the positive X-axis to represent “degree of positive impact,” the negative X-axis to represent “degree of negative impact,” the Y-axis to show “likelihood of occurrence,” and the Z-axis to indicate the “level of stakeholder concern.”

Material Topics Implications

Positive/Negative Impact and Implications

Sustainable product innovation: Integrate sustainability into product design and production by adopting new technologies, using non-hazardous materials, and applying low-pollution, energy-saving processes. Strengthen hazardous substance management, identify recyclable materials, and promote circular design to minimize environmental impact.

 

Inadequate intellectual property management: 
Inadequate management of trade secrets, patent assets, or other intellectual property rights may compromise the company’s intellectual property protection and undermine its market leadership position.

Management Policy

2.1 R&D and Innovation

Positive/Negative Impact and Implications

Sound Corporate Governance: Establish a robust governance and integrity framework with effective oversight to protect stakeholder rights. Through clear policies and ongoing advocacy, we ensure legal compliance and embed ethics into all operations, supporting long-term sustainable development.

 

Management Policy

1.2 Corporate Governance

Positive/Negative Impact and Implications

Sustainable supply chain management: Implement a sustainable supply chain management mechanism by building a highly resilient supply chain, thereby enhancing product quality, delivery reliability, and the overall sustainability performance across the supply chain.

 

Positive/Negative Impact and Implications

Poor water stewardship: Water is vital to the semiconductor industry. Insufficient wastewater treatment or poor water monitoring may harm the environment and endanger nearby communities.

 

Management Policy

5.3 Water Stewardship

Positive/Negative Impact and Implications

Excessive energy consumption High fuel and electricity use across operations and the value chain, if unmanaged, may lead to overconsumption and environmental impact.

 

Positive/Negative Impact and Implications

Occupational Accidents: Insufficient safety protocols may lead to occupational injuries or illnesses, endangering employee well-being and exposing the company to legal and financial risks.

 

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