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Stakeholder Communication

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We define stakeholders as a group or an organization that can affect or be affected by ASEH. Based on the 5 major principles (dependency, responsibility, influence, diverse perspective, tension) of the AA1000 Stakeholder Engagement Standard (SES), we have identified 7 major categories of stakeholders. They are categorized into two groups based on whether the impact is direct or indirect. Our direct stakeholders include shareholders, employees, customers, and suppliers/contractors; our indirect stakeholders include community (incl. NGOs, media), government and industry unions/associations.

We engage with our stakeholders through a variety of means, depending on the nature of the relationship. The methods of engagement will vary depending on the stakeholders, the issues of concern and the purpose of engagement. We regularly report the stakeholder communication status to the board of directors every year.

Communication Mechanisms*
Responsible Units
2022 Issues of Concerns*
2022 Communication Key Outcome*
Customers
  • Customer quarterly business review meeting
  • Customer audits
  • Customer service platform
  • Technical forums
  • COO Office
  • Sales Offices
  • Innovation Management and Sustainable Manufacturing
  • Sustainable Supply Chain
  • Information Security Management
  • Customer Relationship Management
  • Data and Privacy
  • Satisfied customer percentage is 94% in 2022, which achieved our "90% satisfied customer" target.
Employees
  • GM and plant manager’s mailbox
  • Intranet web site, bulletin board and display wall
  • Seminars/employee forums
  • Employee engagement survey (every two years)
  • Service and complaint hotline
  • CAO Office
  • HR Departments
  • Occupational Health and Safety
  • Human Rights
  • Talent Attraction and Retention
  • Talent Development
  • Diversity and Inclusion
  • In 2022, more than 2,000 seminars/employee forums were held, including 329 sessions for new employees, 595 sessions for foreign workers, and 1,220 sessions for regular employees.
  • The number of internal employee complaints amounted to 802 all of which have been closed satisfactorily.
  • In 2021, 96.1% of employees participated in the employee engagement survey, and the sustainability engagement survey result was 79%. The next survey will be conducted in 2023.
Shareholders
  • Annual and quarterly financial reports
  • Quarterly earnings conference
  • Annual shareholders’ meeting
  • Quarterly institutional investors' conference
  • Company Spokesperson
  • Investor Relations Department, CFO Office
  • Innovation Management and Sustainable Manufacturing
  • Water Resource Management
  • Talent Attraction and Retention
  • Energy Management
  • Occupational Health and Safety
  • In 2022, we held an annual shareholders meeting, 4 quarterly earnings calls, and attended 15 institutional investor conferences to communicate economic, environmental, and social issues to our shareholders.
  • In 2022, our consolidated operating revenues were NT$ 670.9 billion, representing an increase of approximately NT$ 100.9 billion, or 17.7% as compared with 2021.
Suppliers / Contractors
  • Supplier questionnaire survey
  • Supplier on-site audits
  • Annual supplier forum and supplier sustainability awards
  • Supplier capacity-building activities
  • Supplier information security evaluation
  • Corporate CSR Division
  • Group Procurement Department
  • IT Departments
  • Occupational Health and Safety
  • Business Ethics
  • Sustainable Supply Chain
  • Data and Privacy
  • Customer Relationship Management
  • Information Security Management
  • More than 700 suppliers completed the survey, while 187 suppliers have on-site audits/remote audits or RBA VAP.
  • More than 5,700 suppliers participated in sustainability forums and training workshops.
  • Completed a second annual on-site audit of the first year’s ASEH Supplier Sustainability Award winners (3 suppliers).
  • Completed the written evaluation of 77 suppliers on information security.
Government
  • Communication meetings, conferences, forums or seminars held by government authorities
  • Proactive dialogue with government authorities
  • Reporting through government portal
  • Public Affairs Division, CFO Office
  • CAO Office
  • Water Resource Management
  • Air Pollution Prevention
  • Business Ethics
  • Occupational Health and Safety
  • Social Involvement
  • The Environmental Safety and Health (ESH) Committee – Assembly and Test Working Group was formed by ASEH together with industry peers to address industrial safety and environmental issues pertaining to the semiconductor industry in Taiwan. The group analyzes the development trends of international laws to provide references for government agencies to formulate policies and regulatory amendments related to the semiconductor assembly and testing industry, and for assisting competent authorities in formulating regulatory proposals that align with current and future industry developments.
Community (incl. NGOs, Media)
  • Community perception surveys and needs assessments
  • Communication meetings, forums, seminars or workshops held by NGOs
  • Volunteer activity cooperation with NGOs
  • Press releases
  • Spokesperson interviews
  • Company's website
  • Public Affairs Division, CFO Office
  • CAO Office
  • HR Departments
  • Waste and Circular
  • Water Resource Management
  • Air Pollution Prevention
  • Climate Change
  • Social Involvement
  • We held a press event for media and non-profit foundations, and organized forums and facility visits for concerned professionals to learn about the technologies behind semiconductor manufacturing and ASEH’s achievements in environmental protection.
  • We contributed approximately US$ 1.17 million in support of environmental conservation programs, charitable activities and civic educational programs through collaboration with 30 NGOs.
Industry Unions / Associations
  • Organizational member conference
  • Technology forums held by industry unions/associations
  • CAO Office
  • Subsidiaries
  • Energy Management
  • Customer Relationship Management
  • Innovation Management and Sustainable Manufacturing
  • Occupational Health and Safety
  • Data and Privacy
  • We engaged over 120 external organizations and contributed approximately US$ 0.62 million in public policy and industry development (more details can be found here ).
  • ASE’s executive serves as the vice chairman of the SEMI Global Board of Directors and the company is a founding member of the SEMI "Semiconductor Climate Consortium (SCC)" established in 2022.

Materiality Assessment and Stakeholder Communication

ASEH has adopted GRI Universal Standards 2021, AA 1000 Stakeholder Engagement Standard (SES), Impact Valuation Methodology and Responsible Business Alliance’s (RBA) Validated Audit Program (VAP) as to conduct materiality assessment every year. These standards allow the company to develop an impact-oriented materiality analysis framework to identify major sustainability issues. In addition, we have incorporated major sustainability topics with Enterprise Risk Management (ERM), that enables us to identify sustainability risks, and integrate them into the sustainability management process.

In addition to applying these principles to compile non-financial reports, they are also used as a basis for ASEH to formulate long-term sustainability objectives and strategies. For the 2022 Sustainability Report, we collected the feedback of 2,642 stakeholders to gain insight into their level of attention to our efforts in addressing sustainability issues. To measure the effects that sustainability issues have on our company operations, a 176-member team including subgroup CSC members led by ASEH senior executives in identifying the importance of each sustainability issue with regard to our company operations. We selected 16 major issues which are the same as the selected issues for last year to be prioritized in driving corporate sustainability and setting long-term sustainability targets.

bg-communication-inclusiveness Step 1:
Inclusiveness
bg-communication-materiality Step 2:
Materiality
bg-communication-responsiveness Step 3:
Responsiveness
bg-communication-impact Step 4:
Impact

To identify relevant and important issues, ASEH referenced international standards & regulations, sustainable investment ratings and industry peers as well as stakeholder communications. We collected and organized 20 issues that are related to ASEH’s sustainability issues. Compared with the previous year, we added “Biodiversity” issue.

7 Economic Issues, 6 Environmental Issues, 7 Social Issues

International Standards and Regulations:
GRI Standards, SASB, SDGs, RBA.

Sustainability Investment Assessment:
DJSI, CDP, MSCI ESG Index, FTSE4Good Emerging Index.

Global Semiconductor Industry:
Benchmarking sustainability policies and practices from semiconductor companies listed on the DJSI index.

Stakeholder Engagement:
Analysis of online media reports and regular/occasional stakeholder communication to evaluate stakeholders' perception on sustainability issues.

In line with global sustainability reporting standards, ASEH uses the step-by-step guidance provided in the GRI 3: Material Topics 2021, to determine material topics based on stakeholder concerns, organizational and operational impact, and economy, environment and people impacts. We consolidate and analyze stakeholder concerns through daily communication and surveys and seek out opinions from internal and external experts. On the organizational and operational impact, and economy, environment and people impacts, we adopt the double materiality concept from the Draft European Sustainability Reporting Standards to assess the impact of sustainability issues within and outside of the organization. The management and the team are invited to evaluate the impact of sustainability issues on the company's operations, focusing on the operational benefits linked to financial performance. On the economy, environment and people impacts, ASEH performs a comprehensive impact valuation assessment annually and references the results of the RBA VAP to determine the significance of external impacts and decide on the gravity of sustainability issues.

2,642 Stakeholders

The degree of concern from stakeholders is a key factor in determining the significance of a particular issue. ASEH has designed a questionnaire on sustainability that drew a total of 2,642 stakeholders' responses. Respondents include employees (1,473), customers (115), shareholders (30), suppliers/contractors (717), government (70), industry unions/associations (33), and community (incl. NGOs, Media) (204).

176 CSC Members

Integrating ESG (Environmental, Social and Governance) into the company's core operations is a key driver for ASEH's corporate sustainability. A 176-member team of senior management leaders and CSC members participate actively in evaluating the impact of each sustainability topic on the company's revenues, risks, customer satisfaction and employees’ organizational identification, and ranking the level of each topic's importance according to the impact.

4 Impacts - Economic, Environmental, Social and Tax

We adopt the Total Impact Measure and Management framework, Natural Capital Protocol and the Social Capital Protocol, to express top sustainability impacts in monetary values.

According to our materiality analysis results, the use of GRI themes and indicators as a basis allowed us to determine our stakeholders’ needs and disclosure preferences in regard to sustainability information. Additionally, we made efforts to enhance the transparency of sustainability issues (in relation to their policies, organization, practice, results and objectives, etc.) on different communication platforms (e.g., non-financial reports, annual reports, and websites).

16 Key Issues

The CSC initially identified 16 material issues that are of importance to stakeholders, of impact to the company’s sustainable development and of impacts on the economy, environment and people. After further deliberation, the assessment ultimately yielded 16 issues of materiality and these issues were reported to the board of directors. Consequently, the material issues form the basis for the disclosures in the 2022 Sustainability Report and formulating internal sustainable management goals.

21 Sub-topics

A further 21 sub-topics (18 GRI-specific and 3 ASEH specific) for disclosures were derived from the 16 issues. Other topics of lower priority will also be concurrently disclosed in the report.

Commitment is key to demonstrating influence in corporate sustainability. As such, we have set long-term sustainability goals, and are monitoring and measuring the completion rates of such goals at regular intervals.

40 Long-term Goals

To elevate the impact of corporate sustainability, we have made commitments to various major issues and formulated 40 long-term sustainability goals for 2030. In addition, we have promoted and implemented various projects at our factories worldwide year by year.

4 Committees

Every year, the CSC assesses the progress of goal completion via the reports presented by colleagues from relevant business units. On a regular basis, our three member companies hold internal CSCs to manage and track the progress and sustainability trends.

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