TSMC’s 2024 Sustainability Report: Pioneering a Greener Semiconductor Future

TSMC, the world’s most trusted semiconductor foundry, released its 2024 Sustainability Report, underscoring its commitment to embedding environmental, social, and governance principles into its operations. Founded in 1987 and headquartered in Hsinchu Science Park, TSMC employs 84,512 people globally and operates facilities across Taiwan, China, the U.S., Japan, and Europe. The report, spanning 278 pages, highlights TSMC’s role as an “innovation pioneer, responsible purchaser, practitioner of green power, admired employer, and power to change society.” Amid rising global risks like extreme weather, as noted in the World Economic Forum’s Global Risks Report, TSMC emphasizes multilateral cooperation to advance sustainability, aligning with UN Sustainable Development Goals (SDGs).

In letters from ESG Steering Committee Chairperson C.C. Wei and ESG Committee Chairperson Lora Ho, TSMC reaffirms sustainability as core to its resilience and competitiveness. Wei stresses that ESG is embedded in every decision, driving net zero emissions by 2050 and carbon neutrality. The company saved 104.2 billion kWh globally in 2024 through efficient chips, equivalent to 44 million tons of reduced carbon emissions. By 2030, each kWh used in production is projected to save 6.39 kWh worldwide. Ho highlights collaborations across five ESG directions: green manufacturing, responsible supply chains, inclusive workplaces, talent development, and care for the underprivileged.

Environmentally, as a “practitioner of green power,” TSMC focuses on climate and energy (pages 108-123), water stewardship (pages 124-134), circular resources (pages 135-146), and air pollution control (pages 147-153). It deployed 1,177 energy-saving measures, achieving 810 GWh in annual savings and 13% renewable energy usage, targeting 60% by 2030 and RE100 by 2040. Scope 1-3 emissions reductions follow SBTi standards, with 2025 as the baseline for absolute cuts by 2035. A new carbon reduction subsidy for Taiwanese tier-1 suppliers and the GREEN Agreement for 90% of raw material emitters aim to slash Scope 3 emissions. Water-positive goals by 2040 include a 2.7% reduction in unit consumption and 100% reclaimed water systems. Circular efforts recycled 97% of waste globally, transforming 9,400 metric tons into resources, while volatile organic compounds and fluorinated GHGs saw 99% and 96% reductions, respectively.

Socially, TSMC positions itself as an “admired employer” (pages 155-202), fostering an inclusive workplace with a Global Inclusive Workplace Statement and campaigns on action, equity, and allyship. It conducted a global Workplace Human Rights Climate Survey and expanded human rights due diligence to suppliers, incorporating metrics into long-term goals. Women comprise 40% of employees, with targets for over 20% in management. Talent development averaged 90 learning hours per employee, with programs like the Senior Manager Learning and Development achieving 90-point satisfaction. Occupational safety maintained an incident rate below 0.2 per 1,000 employees, enhanced by 24/7 ambulances and diverse protective gear. As a force for societal change (pages 204-232), TSMC’s foundations benefited 1,391,674 people through 171 initiatives, investing NT$2.441 billion. Social impact assessments using IMP and IRIS+ frameworks supported STEM education, elderly care, and SDG 17 partnerships.

Governance-wise (pages 234-251), TSMC reported NT$2.95 trillion in revenue and NT$1.17 trillion in net income, with 69% from advanced 7nm-and-below processes. R&D spending hit US$6.361 billion, up 3.1-fold in a decade. The ESG Performance Summary (pages 263-271) details metrics like 100% supplier audits and top rankings in DJSI and MSCI ESG.

Bottom line: The report showcases TSMC’s 2024 achievements: 11,878 customer innovations, 96% customer satisfaction, and NT$2.45 trillion in Taiwanese economic output, creating 358,000 jobs. Despite challenges like geopolitical tensions, TSMC’s net zero roadmap and inclusive strategies position it as a sustainability leader, driving shared value for stakeholders and a resilient future.

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