Sustainability Commitments and SDGs

Reviewing our core competencies is the first step in response to the United Nations' Sustainable Development Goals (SDGs). Based on our 15 material topics, Nanya identified methods that might solve the problems faced by humans around the globe. We found that our practice in 12 sustainability topics might link to 10 of the SDGs, especially the SDG 8 Decent Work and Economic Growth, and the SDG 12 Responsible Consumption and Production. Nanya contributed the most to these two goals, because the two goals were in line with the key roles the Company played in innovation, green, and talent. Therefore, Nanya could use its core competencies and operations to make the most contribution to the SDGs.

  • Integrity and Transparency

    A Trustworthy Company

    • Business Integrity
      16.5
      Significance to operation

      We will build a sound corporate governance system and implement various business ethics policies and risk management mechanisms between suppliers, customers, and stakeholders to maintain the important cornerstone of corporate sustainable operation and value creation.

      Long-term goals (2025)
      • Material violations of regulations: 0 cases
      • Corruption cases: 0 cases
      • Workplace violence: 0 cases
      • Violation of employee and labor ethics 0 cases
      • Antitrust cases: 0 cases
      • Violation of trade secrets 0 cases
  • Innovative Technology

    The Best Partner for Our Customers

    • R&D and Innovation
      8.2
      9.5
      Significance to operation

      In order to maintain competitive advantages, we will research and develop advanced process technologies, and design new products of the next generation. Moreover, we will make forward-looking market plans, provide customers high value-added solutions, and establish high intelligent product lines to enhance efficiency.

      Long-term goals (2025)
      • Introduce the second generation 10nm DRAM process into mass production
      • Develop the third generation 10nm DRAM process and the next-generation DDR5 and LPDDR5 products
      • Manufacture 16Gb high density products at large scale
      • Enter fast-growing markets (artificial intelligence (AI), data centers, automotive and the Internet of Things)
      • Set up high-efficient production lines with an AI-aided system
  • Responsible Procurement

    A Promoter of Shared Value

    • Sustainable Supply Chain Management
      7.3
      12.4
      16.5
      Significance to operation

      We will promote sustainable performance of suppliers, improve resilience of supply chains, manage and control supply chain risks, and cooperate with suppliers to become the best partners in order to jointly move towards a sustainable future.

      Long-term goals (2025)
      • Use of non-conflict minerals for wafer product lines: 100%
      • Key suppliers' completion of the RBA self-evaluation questionnaire: 100%
      • Completion rate of deficiency improvements by suppliers with high sustainability risk in audits: 100%
      • Percentage of suppliers signing Supplier Code of Conduct: 100%
      • Accumulative percentage of auditing and counseling key suppliers for three years: 100%
      • Create at least two supplier sustainability counseling projects a year
  • Green Manufacturing

    A Practitioner of Green Technology

    • Greenhouse Gas Management
      13.3
      Significance to operation

      We will include climate change risks into overall considerations of operations, and predict the probability of risk occurrence and levels of influence. We will also formulate risk response and mitigation plans, and crisis handling mechanisms in order to issue warnings as early as possible to mitigate the impact of climate risks on our operations.

      Long-term goals (2025)
      • Reduce unit greenhouse gas emissions by 25% from 2017. (Per die)
      • Reduction rate of PFCs emissions during process reaches a minimum of 90%
    • Eco-friendly Products
      12.4
      Significance to operation

      We use complete advanced processes to provide competitive advantages of optimized energy consumption, efficacy, and chip sizes. In addition, we manufacture more advanced, more energy-saving, more eco-friendly, and hazardous substance free products for our customers, while lowering the environmental impact of the products.

      Long-term goals (2025)
      • 100% of products conform to relevant regulations and customers' hazardous substance free (HSF) specifications
      • Complete product life cycle inventory on 100% products
      • No PFOA related substance in 100% process chemicals
    • Energy Management
      7.3
      9.4
      Significance to operation

      We will improve the efficiency of energy use, promote energy saving measures, reduce greenhouse gas emissions, as well as lower environmental pollution to improve our image in society, and lower manufacturing cost while meeting the requirements of customers or government policies.

      Long-term goals (2025)
      • Energy conservation through energy-saving measures totals at least 80,000 MWh or higher (from 2017 to 2025).
      • Production disruption caused by climate change disasters 0 days
      • Annual renewable energy use reaches 22,000MWh or higher.
    • Water Management
      6.4
      Significance to operation

      Through daily management, reductions and water recovery, we maximize the use of water resources and lower environmental pollution and production cost, while setting up response mechanisms for water shortage to mitigate the production impact risks resulting from water shortage.

      Long-term goals (2025)
      • Compared with the figure in 2017, a 35% decrease in the average unit water consumption (ton/k-pcs) by dividing total water consumption from 2018 to 2025 with the total production capacity of the year.
      • Annual average process waste water recycling rate: More than 97%
      • Other losses in production caused by restricted water supply: 0 wafer (slice)
    • Waste and Recycling
      6.3
      12.5
      Significance to operation

      We will recycle waste to improve the effective use of resources and reduce other problems deriving from pollution. Moreover, we will provide waste to other industries for reuse, achieving the advantages of environmental impact reductions and circular economy development.

      Long-term goals (2025)
      • Waste disposal companies on-site audits and consultation rate > 80%
      • Non-compliance with environmental laws and regulations cases: 0 cases
      • Reduce VOC emissions per die by 40% compared with the base year of 2017
  • Harmonious Workplace

    An Attractive Employer for Professional Talents

    • Talent Development
      4.4
      Significance to operation

      As a human-oriented company, we establish an advantageous training and development system, reinforcing our employees' core technological capabilities to achieve the Company's annual strategic goals, and cultivate outstanding high-tech semiconductor talent.

      Long-term goals (2025)
      • Percentage of key talent to total employees ≧ 6%
      • Annual planned course completion rate ≧ 100%
      • Internal employee substitution rate for job openings ≧ 65%
      • Percentage of females to all supervisors ≧ 40%
    • Occupational Health and Safety
      8.8
      Significance to operation

      Employees are our important assets. Through continuous improvements in providing employees with a safe and healthy working environment, we aim to enhance the awareness of safety culture, strengthen self-inspection, and reduce employee occupational accidents.

      Long-term goals (2025)
      • Disabling frequency rate < 0.17
      • Disabling severity rate < 5.9
      • Independent inspection rate > 94%
      • Number of proposals engaging all employees for safety and health > 1800 proposals
      • Occupational diseases caused by chemical exposures remains zero.
      • Voluntary participation rate of health programs ≧ 54%
    • Human Rights
      8.8
      10.2
      Significance to operation

      Value basic human rights, implement a human rights culture and training, establish principles of risk mitigation and compensation, and create a working environment that protects human rights.

      Long-term goals (2025)
      • Implement human rights policies, and 100% employees complete training and eduction regarding the policies
      • No major deficiencies are found in external audits or labor inspections
  • Common Good

    An Active Participant in Giving Back to the Society

    • Social Engagement
      8.5
      13.3
      17.7
      Significance to operation

      Based on our core competencies and values, we gather internal resources, invest in diverse aspects, and cooperate with upstream and downstream partners to convey the power of beauty and benevolence, and help create a better society.

      Long-term goals (2025)
      • Percentage of investments in business initiatives ≧ 85%
      • Percentage of the number of volunteers to total employees ≧ 5%
      • Accumulative semiconductor talent cultivated ≧ 1,000 people (an accumulation of five years starting in 2021)

Sustainable Influence

"Influence" is Nanya's original motivation of pursuing corporate sustainability, as only using the management thinking of the Triple Bottom Line (TBL), i.e., the economic, environmental, and social bottom line, could we show the substantive value created by corporate operations for stakeholders. We have cooperated with academic units to jointly develop management tools for sustainability impact valuation since 2017. Through the Impact pathway approach, we map out the externalities of the environment and society deriving from value chain activities, and monetize the impact to measure its potential effect on human well-being and socioeconomics. With the approach, we may provide decision-makers information for their consideration and comparison during the process of promoting corporate sustainability, and connect with the international sustainability management standards.

Impact Valuation Framework

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