Taiwan’s TSMC is Listed as Top 10 ESG Risks in 2018

According to Sustainalytics’【10 FOR 2018: ESG RISKS ON THE HORIZON】- Taiwan Semiconductor Manufacturing Company (TSMC) is said to facing the following ESG risks:

1. Recent power outages in Taiwan illustrate the financial toll of energy supply disruptions. A five-hour blackout in August 2017 is estimated to have cost 151 affected companies, including semiconductor firms, USD 3mn in damages.
2. With more countries in Asia and around the world adopting GHG regulations, the energy supply challenges facing semiconductor firms may be compounded by higher production expenses associated with the cost of carbon.

TSMC is well prepared to manage the risks:

• TSMC invests heavily in standby energy systems and energy efficiency improvements, and reported related cost savings of USD 10.1mn in 2016.
• It established an internal carbon price based on the highest penalty under China’s Greenhouse Gas Reduction and Management Act to evaluate costs of production.
• An Energy and Carbon Reduction Committee implements its strategy focused on carbon credit acquisition, carbon management and legal compliance.

For more info:

10 FOR 2018: ESG RISKS ON THE HORIZON > https://www.sustainalytics.com/thematic-research-reports/10-for-2018-esg-risk-horizon/#1517951302536-db73abdc-d276