Green

A Producer of Green Technology

Upholding the green philosophy that we only have one Earth, Nanya insists on leaving the best environment to every future generation. We actively manage all environmental impacts of our operations, and adopt higher standards than required by law for energy, operations, and adopt higher standards than required by law for energy, resources, emissions, and waste to avoid or mitigate the risk of impacts. We also research and develop advanced and highly efficient products to assist consumers in lowering energy consumption and reducing carbon emissions when using products. We have set goals for our sustainability performance to fulfill our responsibility of cleaner production and to protect the natural environment. As climate change has become one of the most significant global risks, we implemented risk identification, assessment and management in accordance with the Task Force on Climate-related Financial Disclosures (TCFD) Recommendations to enhance our operational resilience under the climate change crisis.

Scope of the data display on this page is mainly located at Nanya Technology Corporation's production site and doesn't cover subsidiary.

Statistics

  • SBT

    Proposed carbon reduction goals that comply with the SBT and obtained certification from the SBTi. Reduce Scope 1+2 GHG emissions in 2030 by 25% compared to 2020, and Scope 3 GHG emissions in 2030 by 27% per product compared to 2020

  • 92.9 %

    Annual average process waste water recycling rate

  • 1,624

    The annual reduction of perfluorocarbons is equal to 1,624x the carbon absorption of Da'an Forest Park

Strategy and Performance of Material Topics

2022 Performance

Greenhouse Gas Management

  • Reduce greenhouse gas emissions per die by 33% from 2017(Goal: 38%) Note 1
  • Reduction rate of Fluorinated Greenhouse Gases (F-gases) emissions from processes reaches a minimum of 93% (Goal: 93%)
  • Reduce F-gases emissions per die by 29.6% from 2015 (Goal: 30%) Note 2
  • Production was suspended due to climate change disasters maintained at 0 days (Goal: 0 days)
  • Note1: Due to trial production of the 1A/1B process and adding 89 new machines, electricity consumption in 2022 increased 2.2.% compared to 2021, and an increase in the electricity carbon emission factor of Taiwan Power Company by 1.4% caused an increase in GHG by 2.6%.
  • Note2: The increase in PFCs was mainly due to trial production of 1A/1B processes and the newly purchased machines; 5 TF/NF3 machines were added and usage increased 5.7%; die output decreased 3% compared with 2021.

Energy Management

  • Cumulative energy saved from 2017 to 2022 totaled 63,228 MWh (2.28x108 MJ) (Goal:64,000 MWh (2.3x108 MJ) Note 3)
  • Annual renewable energy use reached 7,880 MWh (2.84x107 MJ) (Goal: 7,880 MWh (2.84x107 MJ)
  • Note3: Two energy conservation management plans were implemented in 2022 and reduce energy consumption by an estimated 2,960MWh/year. Completion of the project was delayed to 2023 due to production capacity allocation.

Water Management

  • Accumulated water consumption per unit production capacity decreased >38.5% compared to 2017(Goal:38.5%)
  • Annual average process wastewater recycling rate: 92.9% and above (Goal:90%)
  • Other losses in production caused by restricted water supply: 0 wafer (slice) (Goal: 0 wafer)

Waste and Pollution Prevention

  • 0 cases in violation of environmental laws and regulations (Goal: 0 cases)
  • Rate of auditing and coaching waste disposal contractors on-site > 98% (Goal: > 90%)
  • Reduce VOC emissions per die by 38.8% from the base year of 2017(Goal: 46%)Note 4
  • Note4: Process VOC emissions increased 19% compared with 2021, and die output decreased 3% compared with 2021.

2023 Goals

Greenhouse Gas Management

  • Reduce greenhouse gas emissions per die by 31% from 2017
  • Reduction rate of Fluorinated Greenhouse Gases (F-gases) emissions from processes reaches a minimum of 93%
  • Reduce F-gases emissions per die by 30% from 2015
  • Number of days production was suspended due to climate change disasters maintained at 0 days

Energy Management

  • Cumulative energy saved with energy conservation measures from 2017 to 2023 reaches 67,500 MWh (2.43x108 MJ) and above.
  • Annual renewable energy use reached 25,000 MWh (9x107 MJ)

Water Management

  • Accumulated water consumption per unit production capacity decreased 38.5% compared to 2017
  • Annual average process wastewater recycling rate: 93% and above
  • Other losses in production caused by restricted water supply: 0 wafer (slice)

Waste and Pollution Prevention

  • 0 cases in violation of environmental laws and regulations
  • Rate of auditing and coaching waste disposal contractors on-site > 98%
  • Reduce VOC emissions per die by 40% from the base year of 2017

Strategy

Greenhouse Gas Management

  • Energy conservation and carbon emissions reduction: Set short, medium, and long-term goals and actively implement related management measures.
  • Low-carbon manufacturing: Commit to improvement in production technologies and reduce greenhouse gas emissions in the production process.

Energy Management

  • Implementation of energy conservation measures: Implement ISO 50001 Energy Management System for systematic management and improve the efficiency of energy usage.
  • Innovative applications: Use external exchanges or training to obtain the latest energy conservation technology or energy-saving methodology.

Water Management

  • Response to risks: Establish backup water sources and water storage tanks and use emergency response organization between company plants to coordinate water usage.
  • Wastewater recycling and reuse: Establish wastewater collection processing and adopt different multiple recovery and reuse to improve the water recycling rate.
  • Water usage reduction: Conserve water through daily management.

Waste and Pollution Prevention

  • Circular economy: Increase waste recycling and reuse rate to use resources effectively.
  • Source reduction: Continue to promote waste reduction and increase waste recycling rate.

Climate Change Management

Nanya Technology Corporation responded to the international trend of carbon reduction by implementing the Recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), which was provided the international Financial Stability Board (FSB), in 2018 and publicly supported the TCFD in 2021, publishing a TCFD report for 2 consecutive years since 2022. We are actively establishing mechanisms and strengthening operations. We developed strategies and actions in response to climate change on aspects of governance, strategy, risk management, and metrics and targets, in hopes of reducing the impact of climate risks.[Here to download the entire TCFD report]

Nanya Technology TCFD Framework
  • Governance
    Management strategies and actions
    • In terms of governance level, climate change is listed as an issue for the board of directors. The Sustainable Development Committee is a functional committee established to management measures relating to the trend of sustainability and climate change.
    • Enhance the climate governance ability of the board of directors and management, and raise the awareness of all employees of climate change.
    • Management periodically participates in quarterly sustainable development and risk management meetings to examine the Company's implementation results and decide on work items.
    • Implement improvement plans through monthly climate change management meetings, ISO50001 energy management monthly meetings, and ISO14001 environment management monthly meetings.
    2022 Operation status
    • A total of 6 board meetings and 1 Sustainable Development Committee meeting were convened in 2022.
    • Continuing education received by directors in 2022, 48.9% was related to climate change. ESG issues are incorporated into the Company's manager training, and new employees are required to receive training in ESG and climate change.
    • The Corporate Sustainability Steering Center and Risk Management Steering Center convened a total of 8 quarterly meetings, and included discussions on responses to climate change. The discussion topics were listed as resolutions or action items that required follow-ups and improvements. For example, formulating a renewable energy policy, and discussing risks of power stability issues were listed as resolutions.
  • Strategy
    Management strategies and actions

    According to the internal risk management schedule, short-term is defined as within 3 years, mid-term is 3-10 years, and long-term is 10 years and above. Stakeholders' needs and climate change issues are periodically collected. Using the TCFD framework, short, medium, and long-term climate-related risks and opportunities are periodically identified, as are their impacts on operations, strategies, and financial plans.

    Scenario analysis includes:
    • Transition Scenarios: NDC, pathway to net zero (APS, NTZ)
    • Physical scenario: AR5 RCP2.6-8.5 (adjusted to SSP based on the latest information)
    2022 Operation status
    • Using TCFD climate risk scenario simulation, short, medium, and long-term climate-related risks and opportunities were discussed and identified cross-departmentally. A total of 25 risk factors and 6 opportunities were identified.
    • Considering the risks and opportunities in different climate change and physical scenarios, as well as the operational characteristics of Nanya Technology Corporation, we formulated five strategies, including developing green products, implementing cleaner production, strengthening adaptation ability, and working with sustainability partners.
  • Risk Management
    Management strategies and actions
    • According to the Company's operational risk management procedures, we assessed the significance of related risks and opportunities brought by different scenarios of climate change, and formulated relevant response measures, which were included in Enterprise Risk Management (ERM) and periodically confirmed by senior managers. Formulate a complete emergency response plan for risks of natural disasters related to climate change.
    • The scopes 1/2/3 of greenhouse gas inventory and verification are conducted annually to confirm sources of greenhouse gases for key project management.
    • Compile product life cycle inventory and improve hot spots.
    2022 Operation status
    • Material risks that we identified were mainly transition risks, such as changes to the electricity structure, customer requirements on low carbon products, and the impact of implementing SBTs; the mid-term financial impact of the three items is estimated to account for 3-4% of annual revenue, and was reported to senior management for review during the annual Risk Management Committee meeting. We continue to reduce potential impacts through backup power supplies, energy conservation plans, and the use of renewable energy.
    • The main opportunities identified are product technology and new market development: Due to the trend of net zero emissions, smart clean energy technologies will drive growth in demand on DRAM. According to the scenario analysis by the IEA, the clean energy technology market will triple in size by 2030, and the Company will seize this opportunity to continue investing in innovative R&D (reached 12% of revenue in 2022), so as to seize business opportunities. The Company's DRAM products have already been applied in solar PV systems and charging stations.
    • Verification of GHG emissions in 2022 will be completed in May 2023. Completed the inventory of the carbon footprint of all products and implemented management plans to improve the three hot spots of carbon footprint in the 2021 inventory.
  • Metrics & Targets
    Management strategies and actions Mitigation goals:
    • Compile and verify Scope 1/2/3 emissions every year.
    • Set greenhouse gas management goals and energy and resource recycling and reuse goals.
    • Participate in the international Carbon Disclosure Project (CDP) and water safety project, disclose related information, and communicate with stakeholders.
    • Propose SBTs for certification.
    Adaptation goals:
    • Strengthen the Company's drought resistance and increase the water recycling rate.
    • Promote green buildings and green factory certifications.
    2022 Operation status
    • The Company's GHG emissions in 2022 was 444,000 thousand tons, and emissions per unit product was 405 kg CO2e/thousand die, down 31% compared to 2017.
    • A total of NT$41.57 million was invested and 25 energy conservation plans were completed in 2022, saving an estimated 4,378 MWh, reducing carbon emissions by 2,228 tons, and saving NT$116 million in electricity fees.
    • Obtained certification for SBT in 2030.
    • Use 7.88 million kWh of electricity from onshore wind farms according to the schedule for purchasing renewable energy. Continue to increase renewable energy purchases and use 25 million kWh starting in 2023, which is expected to reduce carbon emissions by 12,500 tons.
    • Rated by the CDP at Leadership Level A- in climate change and A-LIST in water security in 2022.
    • Process wastewater recycling rate reached 92.9% in 2022.
    • Received the green factory certification and added 1 green building.

Greenhouse Gas Inventory

The Company referenced ISO 14064-1 and requirements set forth in the Greenhouse Gas Reduction and Management Act, Greenhouse Gas Inventory Registration and Management Regulations, Greenhouse Gas Verification Guidelines, Greenhouse Gas Registration Guidelines, WBCSD/WRI Greenhouse Gas Protocol, and sets the boundaries of the organization at 100% control of operations. At present, verification of Scope 1, Scope 2, and Scope 3 emissions is carried out by a third party verification institution according to international standards.The scope of inventory of Nanya Technology Corporation covers all production locations in Taiwan. The main sources of GHG emissions were purchased electricity and steam (accounting for about 86.45%) and process emissions (accounting for about 10.79%).

Percentage accounted for by Scope 1 and Scope 2 emissions in 2022

GHG1 emission trends in 2019-2022

  • Note 1: GHG emissions in this table includes Scope 1 and Scope 2
  • Note 2: The calculation of production capacity was the output of Good Electronic Chip (GEC), and the output of various products was converted into around 4Gb product particle numbers, using per thousand die (k-pcs) as the calculation unit.

To improve the integrity of greenhouse gas (GHG) inventory in our value chain, we have conducted scope 3 inventory in accordance with the Greenhouse Gas Protocol, and have met the ISO 14064-1 standards. The emissions of 7 items in Scope 3 GHG emissions passed verification in 2022. In all scope 3 inventory categories, the highest GHG emissions came from the use of sold products, followed by Emission from processing of sold products. Purchased goods and services at the third place.