Sustainability Strategy and Impact

Sustainability Strategy

Nanya formulated three development themes – "Creating Shared Value," "Promoting Sustainable Mutual Prosperity," and "Achieving Sustainable Development" to drive the six development aspects of sustainability strategies, in order to achieve the vision of becoming the "Best DRAM Partner for Smart World".

Linking to SDGs and Nanya Sustainability Performance

  • Innovation

    The Best Partner for Our Customer

    SDGs
    Importance to Nanya

    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.

    Sustainability Performance in 2022

    R&D and Innovation

    • First generation 10nm DRAM process and 8Gb DDR4 products reached standards for shipment
    • Second generation 10nm DRAM process and 8Gb DDR4 products completed product specifications and yield certification
    • Cumulative 90 intelligent systems developed
    • Accumulated 400 engineering personnel trained with AI theories and practical technological capabilities

    Eco-friendly products

    • 100% of products that conform to hazardous substance free regulations and customers' specifications
    • 100% of products that completed the product life cycle inventory
    • 100% of raw materials that do not contain PFOA related substances
    • 88.5% of 20nm and other advanced processes
  • Talent

    An Attractive Employer for Professional Talents

    SDGs
    Importance to Nanya

    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.

    Sustainability Performance in 2022

    Employee Development

    • 5.5% of employees that are key talents
    • 85.9% Internal employee substitution for job openings
    • 178.5% Annual planned course finished

    Talent Retention and Employee Care

    • 99.5% Retention of key talents
    • 8.8% Voluntary turnover
    • 76.2% Employee opinion survey reached the average approval rate

    Human Rights

    • 100% of employees that received training on human rights policies and procedures
    • No major deficiencies of external audits or labor Rights Protection inspections
    • 0 cases of Unlawful workplace harassment

    Occupational Health and Safety

    • 0% of disabling injuries
    • 94.1% In-plant self-inspection
    • 1,050 proposals engaging all employees for safety and health
    • 0 cases of Occupational diseases caused by chemical exposures
  • Green

    A Practitioner of Green Technology

    SDGs
    Importance to Nanya

    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.

    Sustainability Performance in 2022

    Climate Change

    • 33% GHG emissions per unit production capacity (lower compared to 2017)
    • 93% Reduction rate of PFCs Management emissions from processes
    • 29.6% PFCs emissions per unit production capacity (lower compared to 2015)
    • 0 days production was suspended due to climate change disasters

    Energy Management

    • 63,228MWh energy saved from energy conservation measures (since 2017)
    • 7,880MWh Renewable energy use in the entire year

    Water Management

    • 38.5% accumulated water consumption per unit production capacity since 2018 (lower compared to 2017)
    • 92.9% annual average process Management wastewater recycling
    • 0 wafers lost in production caused by restricted water supply

    Waste Management

    • 98% auditing and coaching waste disposal contractors on-site
    • 0 cases of Non-compliance with environmental laws and regulations
    • 38.8% VOC emissions per unit production capacity (lower compared to 2017)
  • Responsible Procurement

    A Promoter of Shared Value

    SDGs
    Importance to Nanya

    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.

    Sustainability Performance in 2022

    Responsible procurement

    • 100% of non-conflict minerals used in wafer product lines
    • 100% of Significant suppliers that completed the self-evaluation questionnaire
    • 100% Completion of deficiency improvements by suppliers with high sustainability risk in audits
    • 100% suppliers signed the Supplier Code of Conduct
    • 100% Completion of audits and guidance for Key Suppliers (once every 3 years)
    • 2 cases of Supplier sustainability counseling
  • Common Good

    An Active Participant in Giving Back to Society

    SDGs
    Importance to Nanya

    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.

    Sustainability Performance in 2022

    Social Engagement

    • 14.9% growth of resources invested in community involvement (person-hours)
    • 87 volunteers in the service team
    • Accumulative 532 semiconductor talent cultivated (since 2021)
  • Integrity and Transparency

    A Trustworthy Company

    SDGs
    Importance to Nanya

    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.

    Sustainability Performance in 2022

    Integrity and Transparency

    • 0 cases of Material violations of Regulations and Corruption
    • 0 Violation of employee and labor ethics and Antitrust cases
    • 0 Violation of trade secrets

    Risk Management

    • 6 regular quarterly meetings and annual reports to the Board of Directors
    • 67 items of the emergency response plan completed each year
    • 8 items of Stress test items executed each year
    • 100% of employees that received risk management training

2025 Sustainable Goals

  • Quality education

    • Annual planned course completion rate ≧100%
    • Accumulative semiconductor talent cultivated (since 2021) ≧1,500 people
  • Clean water and sanitation

    • 40% reduction in accumulated water consumption per unit production capacity since 2018 (compared to 2017)
    • Annual average process waste water recovery rate ≧92%
    • 0 wafers lost in production caused by restricted water supply
  • Affordable and clean energy

    • Total energy saved from energy conservation measures (since 2017) ≧80,000 MWh
    • Renewable energy use in the entire year ≧25,000MWh
  • Decent work and economic growth

    • Percentage of employees that are key talents ≧6%
    • Internal employee substitution rate for job openings ≧65%
    • Retention rate of key talents ≧98%
    • Voluntary turnover rate ≦5%
    • Employee opinion survey reached the average approval rate ≧80%
    • Frequency of disabling injuries <0.17
    • Severity of disabling injuries <5.9
    • Independent inspection rate >94%
    • Number of proposals engaging all employees for safety and health >1,800 cases
    • 0 Occupational diseases caused by chemical exposures
  • Industry innovation and infrastructure

    • Introduce 10nm technology into mass production
    • Established high-performance production lines with AI-assistance and developed 150 intelligent systems
    • Ratio of 20nm and other advanced processes ≧90%
  • Reduced inequalities

    • Percentage of females to all supervisors ≧40%
    • 100% employees that received training on human rights policies and procedures
    • No major deficiencies from external audits or labor inspections
    • 0 Unlawful workplace harassment cases
  • Responsible consumption and production

    • Rate of auditing and coaching waste disposal contractors on-site >90%
    • 0 Non-compliance with environmental laws and regulations cases
    • 46% reduction in VOC emissions per unit production capacity (compared to 2017)
    • 100% Critical suppliers complete SAQ
    • 100% High risk suppliers complete deficiency improvement
    • 100% suppliers sign the Supplier Code of Conduct
    • 100% auditing and counseling Critical suppliers
    • Create at least 2 or more supplier sustainability counseling cases in a year
    • 100% completion of audits and guidance for significant suppliers(a round of three-year)
    • Implement at least 2 supplier sustainability guidance projects
  • Climate action

    • 100% products that conform to hazardous substance free regulations and customers' specifications
    • 100% products that completed the product life cycle inventory
    • 100% raw materials that do not contain PFOA related substances
    • 40% reduction in GHG emissions per unit production capacity (compared to 2017)
    • Reduction rate of PFCs emissions from processes ≧93%
    • 40% reduction in PFCs emissions per unit production capacity (compared to 2015)
    • 0 days production was suspended due climate change disasters
  • Peace justice and strong institutions

    • 100% non-conflict minerals used in wafer product lines
    • 0 Material violations of regulations cases
    • 0 Corruption cases
    • 0 Violation of employee and labor ethics cases
    • 0 Antitrust cases
    • 0 Violation of trade secrets cases
  • Partnerships for the goals

    • Annual growth of resources invested in social engagement (person-hours) ≧10%
    • Volunteers in the service team as a percentage of total employees ≧ 5%

Sustainable Impact

  • 263.4 billion

    Value of socioeconomic contributions

    Procurement demand has driven the industry chain's development and created 3x the economic value; sales of DRAM products created 1.85x the output value in customers' industries.

  • 90 %

    Environmental external cost comes from upstream and downstream in the value chain

    From an environmental perspective, the environmental footprint in the upstream supply chain and downstream product sales is greater than own operations, showing the importance of Nanya's green supply chain management and product energy and material conservation on the well-being of society.