Feature Stories

Feature Stories 01: Nanya Obtains SBTi Certification on the Path to Net Zero

Nanya actively takes action to reduce GHG emissions and set science-based targets (SBT). Nanya obtained SBTi certification in 2022 and set a milestone for its carbon reduction action. The climate change strategy formulated based on the TCFD framework gradually achieves carbon reduction goals through operations of the internal management platform and external resource integration, in order to create a future with net zero emissions.

In response to the global trend of carbon reduction, Nanya began planning the carbon reduction path for its SBT in 2021 and submitted an application for certification at the end of the year. The Company set its carbon reduction path after referencing the WB2D (Well Below 2℃ ) scenario, and dedicates its efforts to reducing Scope 1 and Scope 2 emissions by 2.5% and reducing Scope 3 emissions per unit production by 2.7% a year. We plan to reduce Scope 1+2 emissions by 25% and Scope 3 emissions per unit capacity by 27% by 2030 and will dynamically adjust carbon reduction goals and path based on overall production capacity and expansion plans, in order to achieve net zero emissions by 2050.

Carbon reduction paths planned by Nanya

Carbon Reduction Strategies

Nanya planned five climate change strategies based on the TCFD framework and manages reduction measures based on the three scope of GHG emissions to ensure that its SBT are achieved as planned. Nanya has planned carbon reduction strategies for Scope 1, 2, and 3 emissions, laying out the path to net zero emissions.

  • Scope 1

    Manage raw material use and install GHG abatement equipment

    Nanya's Scope 1 emissions are mainly from the use of process gases for thin-film and etching manufacturing processes. Even though the use of process gases cannot be avoided, the Company has adopted "consumption reduction" and "Local Scrubber" to manage GHG emissions.

    Consumption reduction

    The Company is actively improving process efficiency and product yield to maintain competitiveness in the industry. The transition to the 20-nm process significantly increased production capacity, and therefore effectively reduces energy and resource consumption for per unit production. Furthermore, Nanya has introduced AI application to assist the operation of the factory to improve machinery scheduling, control raw materials inputs, and reduce the amount of waste generated. Results have gradually appeared under various raw material reduction plans.

    Local Scrubber

    Local scrubbers are installed at the end of Nanya's manufacturing process, and use combustion to break the chemical bond of gas molecules, while using cleaning solution to remove the majority of GHGs, such as PFCs, NF3, and N2O. At present, the removal efficiency of equipment used by Nanya is at 90% and above, reducing direct GHG emissions by approximately 600,000 tons CO2e. We will continue to implement reduction equipment management strategies to improve reduction performance. Local scrubbers will also be installed in equipment of the new factory to minimize the impact on the environment.

    Actions to reduce Scope 1 emissions have achieved a 33.8% reduction in 2022 compared to 2020.

  • Scope 2

    Low carbon and renewable energy use

    Scope 2 emissions of Nanya are mainly from purchased electricity. The Company implements energy conservation management through ISO 50001, reduces electricity consumption by approximately 5 million kWh through energy conservation plans each year, and also actively uses low carbon energy.

    Nanya supports the policy of local governments by purchasing steam generated from gas instead of coal combustion and cut the emission in half. With regard to renewable energy, we first installed solar panels on our factories, and obtained T-RECs on the trading platform. We had used 11 million kWh green electricity in 2021-2022, and will used at least 25 million kWh of renewable energy from 2023 (20MW solar power plant). Nanya continues to contact large renewable energy developers and plans to purchase electricity from sites with installed capacity reaching 100MW and above, in order for renewable energy to reach at least 25% of electricity use in 2030.

  • Scope 3

    Supply chain and product energy consumption management

    Nanya's Scope 3 emissions mainly consists of two items, namely "purchase of raw materials from upstream supply chain" and "electricity consumption from downstream product use." We will continue to conduct supply chain sustainability audits for upstream supply chain management and provide guidance for deficiency improvement. We monitor the climate change goals and emissions of suppliers through reviews and communication, and jointly reduce carbon emissions with our suppliers. In 2022, Nanya will review emissions of suppliers and include emissions of packaging and processing plants in management. We will also engage in exchanges with key suppliers in sustainability topics. In the future, we will continue to encourage suppliers to use green electricity and implement cleaner production plans, in order to reduce the carbon footprint of their raw materials.

In the development of new generation processes and products, we have begun small-scale production of our first product using first generation 10-nm process technology (1A), 8Gb DDR4; trial production of our second product DDR5 has also begun. The pilot product using second generation 10nm-class process technology (1B) is currently in the trial production stage, with the goal to begin small-scale production in 2023. Once mass production begins, energy efficiency will improve by 60% and above. Furthermore, we are also actively developing and carrying out the mass production of low-power products, in which the power consumption of new generation DDR5 products is 16% or more lower than DDR4 products.

  • Nanya joined the Taiwan Alliance for Net Zero Emission

  • Climate change is a challenge for all of humanity, and Nanya takes action on climate change response strategies and GHG reduction methods. Meanwhile, we have closely followed developments of clean energy technologies, as well as the opportunities and impacts brought by market tools, such as carbon transaction and carbon credits, and will use a variety of reduction tools to achieve our goal and contribute to the Earth.

Feature Stories 02: Bringing Together the Semiconductor Industry Towards a Sustainable Future

The pandemic, geopolitics, and inflation in 2022 forced industries around the world to change their strategy and turned supply chain resilience into an issue that companies cannot avoid if they want to do business sustainably. Meanwhile, issues such as global climate change, human rights protection, and information security risks require a different supply chain management model from the past, which focused on technology, quality, services, delivery, and cost, and highlighted the sustainability of supply chains, bringing supply chain risk management and their connections closer than ever before.

Milestones of Nanya's Sustainable Supply Chain Management

Nanya implemented supply chain risk management and provides guidance for making improvements, gradually achieving a sustainable supply chain.

Nanya included sustainability performance in supplier evaluations and began organizing the Sustainable Supply Chain Conference in 2020, communicating the importance of sustainability issues with suppliers through various channels. We also achieved excellent results in jointly implementing projects with suppliers for the human rights of migrant workers, energy conservation, and Earth Hour.

Connecting Industries to Jointly Implement Corporate Sustainability

Nanya began actively participating in operations of sustainability associations and organizations in the industry at the end of 2021 in response to developments in the international situation. We hope to leverage the associations to drive the entire semiconductor industry on the path towards sustainability. For example, we participated in the Taiwan Alliance for Net Zero Emission and semiconductor sustainability ESG initiative to share and explore sustainability issues and information.

  • Outsourcing, contractor
    • Green factory experience sharing
    • Promotion of renewable energy use
  • Gas, chemicals
    • Alternative products or solutions with low carbon and environmental footprint
    • Optimization of partial shipment and storage tank cleaning
  • Wafer
    • Green factory experience sharing
    • Promotion of renewable energy use

In response to the issuance of the TCFD Report starting in 2022, Nanya reexamined the connections in its supply chain from the perspective of Scope 3 GHG emissions and reviewed the methodology and database. Starting in the second half of the year, we arranged exchanges between senior managers of Nanya and suppliers, and prioritized suppliers with high transaction amounts and (relatively) high emissions. The first batch of suppliers included in the exchanges cover nearly one third of our procurement amount. In the process, Nanya learned about how different raw materials suppliers, such as fabs, chemicals, and gas suppliers, respond to sustainability issues, and provided customers with solutions for potential dilemmas in sustainable development. We also hope to discuss solutions and invited major electricity users, such as commissioned OSAT company to jointly use clean energy.

With the feedback from exchanges with suppliers, Nanya co-founded the Semiconductor Climate Consortium (SCC) with other members of the global semiconductor industry before COP27 at the end of 2022, working together with the industry in GHG inventory, education, innovative technologies, and policy to achieve net zero emissions. Nanya began serving as the chairman of SEMI Sustainable Manufacturing Committee in 2022, integrating industry resources and jointly planning the vision for the semiconductor industry.

Nanya Initiative for Sustainable Development

Nanya announced the "Initiative for Sustainable Development" during the Sustainable Supply Chain Conference in 2022 based on the preliminary consensus of suppliers. Nanya invited suppliers to jointly declare that they will continue to promote sustainable development in the future, and that they will continue their efforts in climate change and human rights protection. Nanya will continue to encourage suppliers to set renewable energy, energy conservation, and carbon reduction goals to achieve net zero emissions. We will evaluate and implement sustainable processes proposed by suppliers to jointly promote cleaner production! We will also promote the human rights program that advocates zero crimes against humanity, zero forced labor, and zero discrimination, and create a workplace that promotes the happiness and safety for employees through the supply chain.

  • Launch the Nanya Initiative for Sustainable Development: Operational growth that also gives consideration on ESG
    • Suppliers that supported the initiative in 2022 accounted for 65.6% of transaction amount
    • Suppliers that support the initiative in 2023 account for 70% of transaction amount
  • Promote sustainability goals: Set mid-term and long-term sustainability goals
    • Implement the Three-zero Human Rights Program for significant suppliers in 2030
    • 3 high carbon emission suppliers join the commitment to reduce Scope 1+2 GHG emissions by 25% in 2030
  • Cooperation in sustainability projects
    • The semiconductor industry chain or suppliers cooperate in sustainability projects, such as establishing a carbon footprint database, training and talent cultivation, implementation of eco-friendly sustainable processes

The purpose of sustainable development goals emphasizes "Leave no one behind." Hence, the 17th goal is partnerships. Nanya hopes that its experience will help even more suppliers, and will continue to integrate industry resources by working with associations, so that the semiconductor industry will work towards a sustainable and mutually prosperous future.

Feature Stories 03: Implanting the DNA of ESG Through Education to Build Competencies for Sustainability

Seeing the attention drawn by sustainability issues, Nanya realized that awareness and understanding of ESG, corporate sustainability, SDGs, and climate change will become competencies needed by all employees in the future. As such, Nanya has systematically implanted the DNA of ESG into every employee, stakeholder, and global citizen through a top-down, inside-out approach in its complete training and development system and education!

Raising sustainability awareness by leading through example

To increase the visibility of sustainability issues, managers of Nanya reached a consensus in 2018 to develop corporate sustainability capabilities on the basis of the existing system, and capability building plans were formulated for the Board of Directors, managers and all employees:

  • Board of Directors level

    Sustainability issues are periodically scheduled for discussion, and functional committees that reviews the Company's sustainability strategies, goals, and performance were established in coordination with the trend of corporate governance (Risk Management Committee and Corporate Sustainability Committee). The ratio of ESG-related courses was gradually increased for continuing education of directors, e.g. climate change-related courses accounted for approximately 40% of courses in 2021.

  • Management level

    The Company has several management committees for managing ESG-related goals and performance review, such as sustainability, innovation, and talent. Furthermore, performance and remuneration mechanisms for managers are also linked to ESG to ensure that the spirit of ESG is incorporated into the management of various departments. As for courses, elements of ESG and SDGs were incorporated into the strategy camp for senior managers and management team building course in 2019, so that managers will have a comprehensive understanding of related trends.

  • All employees

    The Company plans a variety of ESG-related training courses for all employees, and employees are all required to take the courses and pass the tests, including risk management training, ethical corporate management training, RBA-training, and green product training. Meanwhile, ESG courses are also included in new employee training camp, so that employees will understand the context in which the Company is promoting corporate sustainability, in hopes that they will be able to apply concepts and the spirit of sustainability in the workplace. Furthermore, we have implemented many ESG related incentive measures, such as the "Green Trade Secrets Contest," which encourages employees to propose innovative measures that offer environmental benefits, and also include ESG related indicators in employee evaluations, in hopes of inspiring employees to set more quarterly goals related to corporate sustainability.

  • Promoting SDGs during the senior manager consensus camp
  • Encouraging employees to participate in the volunteer service team and Love Connection Project

Encourage employees to become involved in communities and build connections

In addition to internal activities, the Company also plans community involvement activities to build connections with communities, e.g. setting up the Fair Trade Pantry, organizing charity markets, or planning environmental protection camps for parents and children, promoting SDGs in every corner of the Company.

Nanya established a volunteer service team and implemented the Love Connection Project in 2021, encouraging employees to join community involvement actions, such as "Earth Hour" and "Doing One Thing for Tamsui River," in hopes that they will pour their strengths into creating a virtuous cycle in society. We also hope that employees who participate in the activities will provide new feedback and influence each other. Combined with the Company's incentives system, this will drive even more employees to participate and gradually expand the influence of the volunteer team and Nanya. The volunteer team currently has 87 people and the number of community involvement hours is gradually growing at a rate of 10% a year.

Furthermore, the Company is also providing subsidies and benefits related to ESG. Employees receive information on the environmental impact of their actions in this process. For example, if employees trade-in their scooter for an electric scooter to commute to work, they will receive a subsidy of NT$10,000. Every scooter that is traded in for an electric scooter will on average reduce carbon emissions by 2.3 tons. A total of 102 people submitted applications and received subsidies last year, and it has reduced carbon emissions by approximately 234.6 tons.

Connecting CSR X USR to increase synergies of education taking root

Nanya strives to create mutual benefits and mutual prosperity based on the four themes of community involvement "talent cultivation, "humanistic care," "environmental conservation," and "good neighbor." Taiwan's semiconductor industry hasflourished in recent years and has been competing for talent. Nanya must expand talent recruitment and provide more in-depth memory education to pursue sustainable development. Nanya thus began cooperating with universities in Northern Taiwan to offer memory courses, such as the Layout programs, the master's program in memory established with Chang Gung University in 2022, or the Semiconductor Talent Cultivation College established with Taipei City University of Science & Technology, providing professional teachers, internship site, and scholarships so that students will have different career choices.

Apart from expertise in memory, Nanya also considers the key competencies needed by next generation talent, including SDGs, CSR, and ESG. Hence, we combined efforts with USR for sustainability concepts to take root in campuses. We thus engaged in numerous industry-academia collaboration cases, including the design of animations on Nanya's sustainability image together with Fu Jen University, and jointly implementing the Creative Art Co-creation Project with Ming Chi University of Technology.

Nanya began participating in the three-year project "Design Thinking, Creative Integration" planned by Ming Chi University of Technology in 2022. The project incorporates the spirit of SDGs into design thinking courses, and allows the roughly 1,200 freshmen, sophomores, and juniors engage in cross-disciplinary, cross-departmental exchanges and discussion, so that they will find even more solutions for local cultural or social issues from the perspective of sustainability. Nanya's managers participated in this process and engaged in cross-generation sustainability exchanges. Nanya hopes that this model can be expanded or duplicated on other campuses, so that even more possibilities will be created for corporate sustainability.

Understanding corporate sustainability and staying up-to-date on key trends seems to have become a required subject. Nanya continues to embed the culture of ESG through internal training, and also actively explores different possibilities for cooperation. We utilize our expertise and experience to provide feedback, and hope to grow together in sustainable development for the common good of society together with the industry chain, including customers, suppliers, and stakeholders, such as campuses and NGOs.

Feature Stories 04: Building Positive Energy in Society Through Creativity and Communication

Nanya's vision is to become the best memory partner in the era of AI. Innovation is our core value and stakeholders are our partners in sustainability. By sharing innovative concepts, diverse information, and ESG topics, we jointly push forward on the path to sustainable development. Over the past few years, we planned and implemented creative communication methods in hopes of bringing us closer to stakeholders, and to address material ESG topics. We established transparent and open communication platforms for diverse interactions, including our official website, ESG website, dedicated mailbox, official YouTube account, and official Facebook account. These platforms allow us to listen to internal and external recommendations and respond to stakeholders' questions and opinions, improving the efficiency and quality of communication.

Nanya achieves immediate and effective communication with stakeholders in an interesting way through a variety of innovative platforms and contents. We also share sustainability topics with partners in different sectors, actively maintain communication internally and externally, and work together in building positive energy in society. Meanwhile, we ponder on how we can make students and future generations care more about environmental issues and take circular economy seriously. We worked with campuses in utilizing creative design thinking courses to incorporate concepts of the SDGs (Sustainable Development Goals), and launched the "Copper Together" project, expanding creative communication from within the Company to schools and customers, in order to jointly make sustainable living.

To achieve immediate, effective and compelling communication with our stakeholders, The Company promotes innovative communication based on three themes "creative integration projects," "diverse Internet platforms," and "mutual benefits with partners."

Creative Integration Project: Copper Together

Inspiration for the "Copper Together" project was from the Company's hopes to draw public attention to circular economy and environmental sustainability in an interesting and creative way. Hence, we used the copper foil recycled from process wastewater and worked together with campuses and local artists to organize a series of design and art activities. Nanya formally launched the "Copper Together" project at the end of 2021, and promoted circular economy and environmental sustainability through "Industry-academia Collaboration" and "Local Art Creation".

  • Industry-academia collaboration

    Design Project: Melting
    "Copper Together" Gold Award

    With regard to industry-academia collaboration, the creative design contest "Copper Together – Transformation of Copper Sulfate Waste" co-organized by Nanya and Ming Chi University of Technology used waste copper recycled from process water, and guided college freshmen to show their creativity and developed their practical capabilities by integrating the environmental concepts of SDG 13 (Climate action), SDG 14 (Life under water), and SDG 15 (Life on land) and the research model of design thinking. The recycled copper was designed into gifts featuring environmental sustainability, and the final results not only showed the importance of industry academia collaboration and increased participants' awareness of SDGs, but also allowed teachers and students to experience Nanya's corporate philosophy. "Copper Together" Gold Award- Melting,the design idea is showing that every time we use a tissue, the melting of iceberg will cause the ocean to rise continuously. The purpose is trying to draw people's attention to the impact of our actions may have on our environment.

  • Local art creation

    Artwork "Origin of Life"
    Designed by local artist, Mr. Ching-Tai Chuang

    Every drop of water is the source of life. Protecting water resources and maintaining the natural environment are the only ways to keep lives be sustained. Nanya collaborated with local New Taipei City artist, Mr. Ching Tai Chuang to transform a droplet into an artwork under the theme to cherish water resources. It was produced into a art gift in 2023, and embeds sustainability concepts into recycled materials together with artists. Finally, the gift, an artwork made using recycled copper, is used as a medium for partners to jointly cherish water resources, jointly combat climate change, and take environmental topics seriously.

  • During the design contest, we conducted physical and virtual meetings with professors of the Department of Industrial Design from Ming Chi University of Technology, and proposed directions for improvement and strategy recommendations for the planning and implementation of design thinking and SDGs courses, student practices, design proposals, selection indicators, and event planning.

A student who participated in the "Copper Together" project said: "The design contest allowed me to gain a deeper understanding of the hazards of global warming to the environment, and I began to think about ways to the make the environment better." "Design thinking allowed me to understand how users feel. I than expand my search to focus on products that are suitable for copper, in order to find value in waste copper." We expect to make the public and younger generation take climate change and environmental protection more seriously through this design contest, and bring green technology and environmental sustainability concepts into campus, as well as advocating the importance of CSR and USR for a positive Influence.

Multiple Internet platforms

Nanya hopes to interact with stakeholders through different communication methods via the Internet. We mainly engage in two-way communication with stakeholders through our official website, dedicated mailbox, customer service hotline, official Facebook account, and official YouTube channel.

  • ESG website
    • The "Interactive Map on Energy Conservation and Carbon Reduction Benefits" was added on the official ESG website in 2021, and shows the energy conservation and carbon reduction of smart generation DRAM product applications through animations or interactive methods. As a result, energy conservation data are no longer hard number, but rather environmental protection practices for smart lifestyles.
    • Nanya's ESG website announces the latest news on sustainability each quarter, provides a subscription function, and irregularly sends e-newsletters to achieve immediate communication. Based on quantitative data, the ESG page of the old official website was clicked an average of roughly 5,000 times a month in 2017. After the website was optimized, the number of clicks grew to an average of 15,000 times each month in 2021 and 2022, showing that the creative results of the company website has attracted the attention and gained the recognition of stakeholders.
  • YouTube platform
    • In the presentation of animations, we have engaged in industry-academia collaboration with Fu Jen Creative Design Center to introduce Nanya in a warm way. The film "Environmental Sustainability – A Practitioner of Green Technology" shows the importance that Nanya attaches to water resources and its circulation and reuse. The film stood out from nearly 10,000 works from around the world and won the German iF Design award in 2021, Another film "Best DRAM Partner for Smart World" shows how Nanya uses innovation as the foundation for the Company's growth and seeks to make innovative breakthroughs in process technology, successfully developing 10-nm DRAM technology.
    • Nanya's YouTube channel: Use Vlog, animations, video editing to present topics such as its corporate image, corporate sustainability, process and products, happy enterprise, and social participation, expanding the topics and immediacy of communication.

Mutual Benefits with Partners

Nanya creates synergies through response, appeals, and mutual benefits with government agencies, associations, schools, and suppliers.

  • Government

    Nanya was invited by the Ministry of Science and Technology in 2021 to share green technologies through an online video forum co-organized with Business Today, enhancing Nanya's competitiveness through ESG. We were invited by New Taipei City Government the same year to participate in the CommonWealth Future City Summit – Innovative New Taipei City, co organized with CommonWealth Magazine, exploring industrial development and future opportunities of New Taipei City from the perspective of companies and government. Nanya is also participating in the Development Base of Engineering Talents Project of the Industrial Development Bureau, Ministry of Economic Affairs, and was invited to join the Podcast of CommonWealth Magazine "Listen to CommonWealth – Innovative Breakthrough", during which we shared plans for human resources under the topic "Cross-sector Collaboration in Talent Cultivation, Industry-Academia Research Institutes Protecting the Nation's Foundation, as well as how industry, academia, and research institutes work together to cultivate and recruit talent.

  • Association

    Nanya participated in the 2021 SEMICON Taiwan held by SEMI, and showed its green products and manufacturing results through the online forum and green innovation exhibition hall. Nanya also participated in the 2022 SDGs Asia organized by TCSA, participating in a total of 3 online ESG forums with a total of 2,562 views. Nanya also participated in 1 physical exhibition the same year – SEMICON Taiwan 2021" with a total of 34,674 visitors.

  • School

    In addition to the "Copper Together" Project implemented together with Ming Chi University of Technology and the animations produced with Fu Jen University, Nanya also collaborated with Macronix International Co., Ltd., ESMT, and Etron Technology, Inc., established a master's program in memory with Chang Gung University, and jointly established the Nanya Semiconductor Talent Cultivation College with Taipei City University of Science & Technology to cultivate talent for Taiwan's memory industry.

  • Supply chain

    Nanya has supported Earth Hour for 5 consecutive years starting in 2018, and began inviting suppliers to join the initiative in 2021, in which 52 partners responded. Nanya organized the 3rd Nanya Sustainable Supply Chain Seminar and Sustainable Development Mutual Benefit Initiative in 2022, inviting dozens of suppliers and contractors to participate in efforts to achieve sustainable development. We also led 295 suppliers that supported our sustainability concepts and in signing the Nanya Corporate Social Responsibility Commitment, which was signed by 100% of suppliers. Nanya seeks to create a positive impact on ESG through creative communication, and share the value chain of corporate sustainability with partners.

Nanya is the world's 4th largest DRAM company. In the future, we will continue to fulfill our duty of communication and actively provide our knowledge and capabilities to society, including working with campuses and local communities, organizing industry-academia collaboration and local art placemaking activities, and calling on the public to take circular economy seriously. As for communication via the Internet, we have established a variety of interactive communication platforms, including official website, ESG website, dedicated mailbox, and official social media accounts, interacting with stakeholders through a wider range of communication methods via the Internet. This allows us to immediately respond to the questions and opinions of stakeholders, and improves the efficiency and quality of our communication. We are also working with the government, schools, and associations, and creating synergies in ESG issues through diverse channels, including forums, exhibitions, video planning, and Podcasts. Nanya shares innovative information on sustainability issues with partners in different sectors, building positive energy to jointly create a positive and sustainable society without any communication issues.

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