UMC Recognized as a Sustainability Leader in the Dow Jones Sustainability Indices (DJSI) and MSCI ESG Ratings
United Microelectronics Corporation (NYSE:UMC, TWSE: 2303))("UMC"), a leading global semiconductor foundry, today announced it has been selected for inclusion in the Dow Jones Sustainability Indices (DJSI) World Index for the 17th consecutive year, and has been included in the Emerging Markets Index for the eighth time. Over 3,500 large companies participated in the 2024 DJSI assessment of sustainability performance, with the top 10% from each industry selected for the World Index. This year, UMC achieved the top ranking among 356 peers in the Semiconductors & Semiconductor Equipment sector worldwide, reflecting the company's commitment to implementing best practices in sustainability.
UMC also received ‘AA' rating for the second consecutive year in MSCI ESG Ratings, which serves as a benchmark for investors into how well companies are managing risks and opportunities related to ESG. UMC excelled in MSCI categories including "Water Stress", "Human Capital Development", and "Corporate Governance," earning it a spot in MSCI's key All Country World Index (ACWI) ESG Leaders Index.
SC Chien, UMC's Co-President and Chief Sustainability Officer, said, "In today's rapidly changing global landscape, sustainable ESG practices are becoming increasingly important priorities for stakeholders worldwide. UMC has long been driving sustainable development efforts, deeply embedding sustainability values into our operations and corporate DNA. We are excited to once again garner recognition from key ESG benchmarks such as the DJSI and MSCI. UMC firmly believes in doing what is right. As we advance technology through our core wafer manufacturing business, we will continue to contribute to broader goals, including environmental sustainability, social impact, and economic growth."
To enhance corporate governance, UMC strives to enhance the diversity and independent of its board of directors. Six out of 9 seats are currently held by independent directors and one-third of the seats are held by female directors. UMC also introduced a stock ownership policy requiring executives to hold a certain value of the company's stock, aimed at ensuring the company's management will act in the interest of shareholders. Additionally, UMC has linked its employee compensation system with ESG performance targets to align internal interests with the company's sustainable development goals.
In 2023, UMC achieved a 26% reduction in scope 1 and scope 2 greenhouse gas emissions from 2020 base levels, surpassing its original science-based target of 25% reduction by 2030. Therefore, UMC has pledged a more ambitious target of 42% reduction in scope 1 and scope 2 emissions by 2030, in line with what the latest climate science says is needed to meet the Paris Agreement's scenario of limiting global warming to 1.5°C. In addition, UMC has set an internal carbon price of US$100 per ton, aiming to accelerate internal initiatives to drive net zero transition.
UMC in investing in talent development through collaborations with academic institutions. More than 600 students enrolled in semiconductor specialization courses in 2023 through its partnership with four Taiwan universities. In an increasingly challenging environment for talent attraction, UMC strives to improve talent retention through competitive benefit packages, including an employee stock ownership plan that enables Taiwan staff to purchase the company's stock with subsidies to reduce their investment risks.
UMC's sustainability achievements have also been recognized by other ESG benchmarks. It maintained its inclusion in the FTSE4Good TIP Taiwan ESG Index and was awarded the highest ISS ESG Corporate Rating of "Prime."
About UMC
UMC (NYSE:UMC, TWSE: 2303)) is a leading global semiconductor foundry company. The company provides high-quality IC fabrication services, focusing on logic and various specialty technologies to serve all major sectors of the electronics industry. UMC's comprehensive IC processing technologies and manufacturing solutions include Logic/Mixed-Signal, embedded High-Voltage, embedded Non-Volatile-Memory, RFSOI, BCD etc. Most of UMC's 12-in and 8-in fabs with its core R&D are located in Taiwan, with additional ones throughout Asia. UMC has a total of 12 fabs in production with combined capacity of more than 400,000 wafers per month (12-in equivalent), and all of them are certified with IATF 16949 automotive quality standard. UMC is headquartered in Hsinchu, Taiwan, plus local offices in United States, Europe, China, Japan, Korea & Singapore, with a worldwide total of 20,000 employees. For more information, please visit: http://www.umc.com.
Note from UMC Concerning Forward-Looking Statements
Some of the statements in the foregoing announcement are forward-looking within the meaning of the U.S. Federal Securities laws, including statements about introduction of new services and technologies, future outsourcing, competition, wafer capacity, business relationships and market conditions. Investors are cautioned that actual events and results could differ materially from these statements as a result of a variety of factors, including conditions in the overall semiconductor market and economy; acceptance and demand for products from UMC; and technological and development risks. Further information regarding these and other risks is included in UMC's filings with the U.S. Securities and Exchange Commission. UMC does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.
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