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ENVIRONMENTAL,SAFETY AND HEALTH

VIS Environmental, Safety and Health policy
Vanguard International Semiconductor Corporation (VIS) is a company specialized in R&D, design, manufacturing and sales of integrated circuits. In order to consider both manufacture business and corporate responsibility, all employees are required to participate in the practices of environmental, safety and health policy, and to meet the objective of international environment protection convention, total safety, health and environment protection compliance.

Environmental, Safety and Health Management System Scope applies to all operational activities, products and services derived from R&D, design, and manufacturing of integrated circuits within Vanguard International Semiconductor Corporation (VIS) 's manufacturing sites.

VIS is committed to launch and improve the following operations:

  1. Implement loss prevention actions according to the hazard and risk evaluations.
  2. Improve the manufacturing process and waste treatment technology to achieve waste reduction and environment pollution prevention.
  3. Implement energy and resource recycling to increase the efficiency of resources conservation.
  4. Implement employees training to enhance the awareness of safety and environment protection responsibility.

Environmental Protection Measures

Greenhouse Gases Emissions Management

Climate change is a major topic of discussion in the United Nations and among governments, societies, and corporate bodies worldwide. This is also the case for VIS. The Vice President of Finance of VIS established the VIS Corporate Social Responsibility Promotion Committee, which incorporates climate change issues into project implementation and promotion. The results of implementation are periodically reported to the Board of Directors.
In addition to periodically monitoring regulatory compliance, the VIS CSR Committee has also worked to implement product carbon footprint and water footprint inventories in recent years, providing a basis for future environmental mitigation measures. In 2017, the Company also introduced Environmental Accounting and ISO 50001 Energy Management Systems to reduce the environmental impact of the Company's operations. The Company completed a product carbon and water footprint analysis in 2016 and will continue to promote this program in 2018.
And the company's GHG emissions in Y2015, Y2016, and Y2017 are 627.6 thousand tons CO2e, 721.1 thousand tons CO2e, and 711.1 thousand tons CO2e, respectively. As for the GHG reduction, the company has accomplished, from Y2015 to Y2017, 189.3 thousand tons CO2e, 269.2 thousand tons CO2e, 285.3 thousand tons CO2e, respectively.
VIS conducts its GHG inventories by following ISO/CNS 14064-1 standards, the Executive Yuan Environmental Protection Administration (EPA) Greenhouse Gas Validation Guidelines Note, "Greenhouse Gas Emission Inventory Registration Guidelines", and the WBCSD/WRI GHG Protocol, with 100% control to define organizational boundaries (Operational Control Act).
Based on the 2015 GHG carbon emission coefficient announced by the Taiwan Power Company, the GHG emission per unit area of wafer is expected to be 15% less by 2021 than the amount emitted in 2016.
VIS ensures the transparency of its GHG information by disclosing relevant GHG emission and reduction information through various channels. VIS performs self-inspection during the disclosure process and obtains external opinions in order to continuously reduce its GHG emissions. Information disclosure channels include the following:
    1.Since 2005, VIS has utilized third-party verification for annual greenhouse gas (GHG) emissions and submitted annual reports of GHG emission to the Taiwan Semiconductor Industry Association (TSIA) and EPA, Executive Yuan.
    2.Since 2014, VIS has voluntarily participated in the Carbon Disclosure Project (CDP) to disclose climate change-related information on a yearly basis which includes information on GHG emissions and reductions. In addition, we conduct inspections and make improvements on risks and opportunities relating to legal regulations, natural disasters, finance, and business operations. External bodies are able to access relevant information on the CDP website.
    3.Since 2014, VIS has made its annual CSR reports publicly available on the Company's website, which includes information disclosures which are of concern to our customers and investors.
Furthermore, the company announced its safety, health, and environment policy to promote environmental protection and development of a sustainable environment. For details, please visit VIS website as follows:
http://www.vis.com.tw/visCom/chinese/a_about/a04_environmental.htm

Energy Management

The Company continues to conserve energy within its public facilities. For example, while maintaining high product quality, VIS has increased the environmental temperature in non-photo areas of cleanroom, improved energy consumption of fan filter units in the cleanroom, installed heat pumps on external air-conditioning boxes in the cleanroom, purchased energy-saving production equipment, and adopted variable frequency control systems in the vacuum pumps of manufacturing equipment in order to conserve energy. With respect to conserving natural gas, the external dew point temperature is used to set the optimal operational level of boilers within each plant. Air pollution treatment equipment and the VOC burner were upgraded to recycle and reuse high-temperature exhaust gas. In addition, ISO 50001 certification was obtained for three VIS plants in 2017. The systematic management processes of ISO 50001 have enabled VIS to identify new opportunities for improving our energy-saving capabilities, thus enhancing the Company's energy conservation efforts. In 2017 we conserved 12,150 Kwh of electricity, reducing electricity costs by approximately NT$29.78 million.
VIS's target for energy management is as follows. We aim to conserve 10% less energy per unit area of wafer by 2021 than the amount consumed in 2016.

Air Pollution Control

VIS currently has three wafer fabrication plants, all of which are equipped with extensive waste gas and wastewater collection, monitoring and treatment systems that surpass the regulatory requirements and operate continuously 24 hours a day. To prevent abnormal discharge of waste gas and wastewater during power outage, we have included our production machinery and pollution control equipment into the emergency power supply system to make sure that all waste gas and wastewater are adequately treated before discharge. For waste gas treatment, our various waste gas scrubbers are monitored 24 hours a day, allowing on-duty personnel to quickly manage any system issues that may occur. The level of volatile organic compounds in the treated waste gas we discharge is far below the legal standard.

Water resource management / Prevention and control of water pollution

In terms of water resource management, in order to lessen the impact of water shortages on production processes during periods of low rainfall, the Company has developed the "VIS water vehicle transportation contingency response plan during water shortages" based on the status and condition at each plant as well as the practices of other foundries. This response mechanism can be activated in the event of water shortages to minimize impacts on production.
VIS maximizes the reuse of water discharged from its manufacturing processes. Based on the characteristics of the discharged water, VIS has established over 10 types of water discharge pipes and three types of recycling systems, which are classified according to water quality and user demands into low-concentration HF waste recycling (LHF-R) system, chemical mechanical polishing wastewater recycling (CMP-R) system, and low-concentration acidic wastewater recycling (DLA) system. LHF-R provides additional water for scrub columns and cooling water towers, and water produced by the CMP-R system provides additional water for scrub columns. Lastly, the DLA system recycles water for use in a pure water system. The recycling systems described above can be used to reduce wastewater discharge and ease the burden on the environment, as well as prevent the use of tap water for refilling, thereby conserving more water.
VIS's water pollution prevention strategy is focused on reducing the generation of pollutants and recycling and treating water pollutants by using effective equipment, thereby ensuring that the quality of discharged water meets or exceeds government standards.
VIS has installed water quality and quantity monitoring equipment at the discharge outlet of its wastewater treatment facilities to monitor and record changes in water quality and quantity. To prevent wastewater tanks from rupturing and causing contamination of underground water, VIS also conducts annual groundwater sampling tests at its plant sites and tests the soil at its facilities every three years. This ensures that wastewater discharge and underground water and soil conditions near the vicinity of the plant comply with monitoring standards.

Waste management and recycling

To ensure that waste generated at the Company is adequately managed, we have documented management measures in compliance with the spirit of ISO 14001, and require all employees to faithfully implement the tasks of waste classification, collection, storage, and disposal. We currently engage a qualified waste disposal and recycling organization to help us properly dispose, process, or reuse waste. As a result of our efforts, fabs have maintained a recycling rate of 90% over the past few years.

Working environment and Personal safety protection measures
Vanguard International Semiconductor Corporation (VIS) abides by applicable laws and regulations of occupational safety and health, formulates the corporate-level policy and operational procedures. VIS upholds the principles of providing employees with a safe and health workplace, constantly plan and implement various management measures as listed below:

  1. Identification, assessment, and control of work environment or task hazards.
  2. Safety management of machinery, equipment, and tools.
  3. Labeling and communication of dangerous and harmful materials.
  4. Planning and monitoring of sampling method for hazardous job environment.
  5. Procurement management, subcontractor management and management of change (MOC).
  6. Safety and health educational training and drills.
  7. Training on use of personal protective equipment (PPE) and its management.
  8. Operational safety observation and its improvement.
  9. Investigation and settlement and statistical analysis of occupational accidents, near misses, events that affect the physical and mental health.
  10. Health examination, management, and facilitation.
  11. Sanitary test on food and potable water.
  12. Compiling, sharing, and application of safety and health information.
  13. Promotion of safety and health retraining, safety engineering method and license courses.
  14. Administering competitive KPI benchmarks for environmental, safety, and health compliance to promote workplace safety affairs in an effort to elevate employees' awareness on safety and health.
ENVIRONMENTAL,SAFETY AND HEALTH ROADMAP

ISO 14001:2004 Certification
VIS has been certified for ISO14001 Environment management system since 1997.
OHSAS 18001:2007 Certification
VIS has been certified for OHSAS 18001 Occupational Health &Safety management system since 2003.
Green Partner Certification
VIS has been certified for SONY Green Partner Certification since 2003.
CNS15506:2011 Certification
VIS has been certified for TOSHMS Certification since 2009 and transformed to CNS15506: 2011 in 2015
   
ISO 14001:2015 Certification (PDF File) Expiration date: 01/17/2021
Last update date: 05/03/2018
     
OHSAS 18001:2007 Certification (PDF File) Expiration date: 01/17/2021
Last update date: 01/23/2018
     
SONY Green Partner Certification (PDF File) Expiration date: 03/31/2020
Last update date: 01/23/2018
     
VIS: CNS15506:2011 Certification (PDF File) Expiration date: 01/17/2021
Last update date: 01/23/2018
     
FAB1: CNS15506:2011 Certification (PDF File) Expiration date: 01/17/2021
Last update date: 01/23/2018
     
FAB2: CNS15506:2011 Certification (PDF File) Expiration date:01/17/2021
Last update date: 01/23/2018
     
FAB3: CNS15506:2011 Certification (PDF File) Expiration date: 01/17/2021
Last update date: 01/23/2018