PSMC's climate policy is centered on achieving net-zero emissions by 2050, has established netzero targets, commitments, and carbon reduction pathways to build a sustainable ecosystem. The Company actively supports national policies and participates in the global low-carbon transition, while ensuring alignment with the goals of the Paris Agreement. PSMC encourages the Company and among our supplier partners to jointly implement energy conservation and carbon reduction. In addition to implementing internal net-zero actions, PSMC has also developed a management system for participating in climate change-related public policy engagement and industry associations. Related departments regularly review and monitor whether the activities and industry associations PSMC participates in align with the Paris Agreement. If any misalignment is identified, PSMC will actively engage in discussions and negotiations to address the issue. If no improvements are made, PSMC will withdraw from the activity or industry association.

Public Affairs Governance Policy  

PSMC adheres to the Sustainable Development Best Practice Principles as the highest guiding principle for corporate sustainability. With the vision of "Innovative Technology, Serving Society", the Company is committed to environmental sustainability, social prosperity, and long-term corporate success as part of its mission to contribute to society. We are dedicated to advancing corporate sustainability while ensuring business operations and protecting shareholder interests. PSMC actively participates in industry unions, associations, and related organizations, engaging in close exchanges with the industry, staying informed on public issues, and contributing to the formulation and promotion of industry-related policies.

• Industry Associations: PSMC's participation in public affairs and public policy through industry associations follows a structured review process. Related departments first evaluate the association's relevance to the Company, its scale and influence, and whether its advocacy aligns with PSMC's development goals. Upon approval by department heads, the final decision to participate is authorized by the President, who designates the appropriate internal unit to engage with the association and support the advancement of public policy initiatives. If, during participation, PSMC finds that the association or its activities deviate from the Company's original intent or stance, an internal meeting will be convened to discuss the issue, clarify concerns, and express the Company's position. If a misalignment with PSMC's principles is confirmed, the Company will withdraw from the relevant association or activity.
• When engaging in advocacy activities and industry associations, related departments are responsible for reviewing and managing different policy discussions to ensure compliance with the Paris Agreement. This is done through meetings or formal approvals, providing timely feedback based on practical considerations and reaching a consensus. The conclusions are then reported to senior management and governance bodies for review.

In 2024, PSMC participated in a total of 24 domestic and international industry associations related to industrial development, among PSMC's position in external associations related to climate change was fully aligned with the Paris Agreement goals, and the Company did not engage in any direct lobbying activities.

In 2024, the domestic and international associations related to the development of the industry in which PSMC is involved are mainly the following:

PSMC participates in the Taiwan Semiconductor Industry Association (TSIA) in order to remain on top of the development of the industry and to reach a consensus with industry peers through the association's activities, in an effort to promote cooperation in the midst of competition, to jointly promote the sound development of the industry as a whole, and to strengthen the overall competitiveness of the industry, in hopes that the company can maintain an advantage in the ever-changing international environment.

PSMC participates in the The Allied Association for Science Park Industries to broaden the communication with those in the industry and manufacturers of other industries in the Park, to establish an effective communication mechanism with the government and to protect the common rights and interests of the manufacturers through the organization of the Association.

By joining the Taiwan Internet of Things Technology and Industry Association and taking on a management role, the company will be able to exercise decision-making influence on the development of standards and applications in the IoT industry. This will ensure that the company's existing technologies can be widely applied in various fields related to the IoT industry, and to further continue to provide core competitiveness in the area of technological research and development for application in the emerging industries.

Through the participation in the Taiwan Advanced Automotive Technology Development Association (TADA), the company will be able to communicate with the automotive industry and integrate their knowledge areas, which will enable the company's technology development to connect to the considerable EV and smart car business opportunities in the future. In the face of the automotive industry's carbon reduction regulations, the expanded development of electric vehicles, including the need for a large number of semiconductors and automotive electronic modules, are increasing. PSMC's participation in the association will enable the electronics industry and automotive industry to move into the advanced automotive field together and transform the automotive industry into a smart one, deepening the cooperation between the two industries and establishing a complete supply chain for the electric vehicle industry in line with the country's future goal of net zero sustainability.

In September 2023, the Taiwan Semiconductor Industry Association (TSIA), led by its chairman and including representatives from member companies includes PSMC, publicly declared their commitment to net-zero emissions. TSIA unveiled the carbon reduction plan aimed at mitigating climate change and held a declaration ceremony to express the determination to achieve net-zero. The declared carbon reduction targets are based on 2020 greenhouse gas emission levels, with an absolute reduction of 10% by 2030 (a 40% reduction compared to the Business As Usual scenario) and achieving net-zero emissions by 2050. PSMC, along with other TSIA member companies, is committed to reducing greenhouse gas emissions, promoting the green energy industry, and developing energy-saving and carbon-reducing technologies, all in an effort to meet the goals of the Paris Agreement.

In July 2023, PSMC participated in the joint issuance of the Taiwan Science Park Industry Development Strategy White Paper by The Allied Association for Science Park Industries (ASIP.) This white paper presents 27 strategic recommendations for the development of science parks based on five major visions and eleven key issues. Additionally, in response to the risks of energy and water resource shortages caused by extreme weather phenomena due to climate change, the Hsinchu Science Park Administration has collaborated with various government agencies to drive a circular economy with green technology. This initiative aims to guide and encourage companies to develop energy-saving and low-carbon measures. Through public-private cooperation, they are working to build a smart, green ecological science park, optimizing the park's entrepreneurial environment and sustainability, and leading Taiwan's industries towards the accelerated achievement of net-zero carbon emissions.

Facing the global trend of achieving net-zero emissions by 2050, industries are aligning energy transitions with ESG and green supply chain standards. Developing new and renewable energy has become an international consensus. So is the integrating new energy technologies with industrial applications and demands. This not only enhances the energy resilience of companies but also reduces carbon emissions through various measures and technologies. Since achieving net-zero emissions requires cross-sector collaboration and making new energy applications a new driver for Taiwan's industrial development, in November 2023, PSMC participated in the joint signing of a memorandum of cooperation. This event was organized by five major associations: the Taiwan Internet of Things Technology and Industry Association (TWIOTA), the Taiwan Advanced Automotive Technology Development Association (TADA), the Taiwan Hydrogen and Fuel Cell Partnership Alliance, the Taiwan Battery Association, and the Taiwan Green Energy Association, with the assistance of the Taipei Computer Association (TCA). They also co-hosted the "Prospects for New Energy Applications and Development in Taiwan" forum, which delved into cross-domain new energy application business opportunities for Taiwan's industries, addressing the future ESG carbon reduction trends.