United Nation Global Compact Comparison Table

Letter from the CSR Committee Chairperson

Category

10 Principles

Report Contents or Explanation

Page

Human Rights

Businesses should support and respect the protection of internationally proclaimed human rights

TSMC abides by local laws and regulations in all countries and regions where we operate, and the company upholds the human rights of workers, including regular, contract and temporary employees, interns, etc. We treat them with dignity and respects as understood by the international human rights standards such as The International Bill of Human Rights, The International Labour Organization’s Declaration on Fundamental Principles and Rights at Work, and Ten Principles of The United Nations Global Compact. We also align our actions with the Responsible Business Alliance (RBA) Code of Conduct. Please refer to "Inclusive Workplace - Human Rights" in this report for more details.

139

Make sure that they are not complicit in human rights abuses

As a member of Responsible Business Alliance (RBA, the previous EICC), TSMC supports the “responsible sourcing” practice advocated by the RBA and the Global e-Sustainability Initiative (GeSI). Please refer to "Responsible Supply Chain - Implement Responsible Supply Chain Management & Source conflict-free raw materials" in this report for more details.

71, 75

Labor

Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;

TSMC respect the right to form a labor union of employees. Please refer to "Inclusive Workplace - Human Rights" in this report for more details.

139

The elimination of all forms of forced and compulsory labor

"Eliminate forced labor" is one of guiding principles of“TSMC Human Rights Policy”. Please refer to “TSMC Human Rights Policy” for more details.

139

The effective abolition of child labor

"Abolish child labor" is one of guiding principles of“TSMC Human Rights Policy”. Please refer to "TSMC Human Rights Policy" for more details.

139

The elimination of discrimination in respect of employment and occupation

"Eliminate unlawful discrimination to ensure equal employment opportunity" is one of guiding principles of “TSMC Human Rights Policy”. Please refer to "TSMC Human Rights Policy" for more details.

139

Environment

Businesses should support a precautionary approach to environmental challenges

"Continue promoting green fab, green manufacturing, green supply chain and managing environmental risks" is one of TSMC environmental protection strategies. Please refer to "TSMC Environmental Policy" and "Green Manufacturing" in this report.

78

Undertake initiatives to promote greater environmental responsibility

"Collaborating with external parties to reduce environmental impact" is one of TSMC environmental protection strategies. Please refer to "TSMC Environmental Policy" and "Green Manufacturing" in this report.

78

Encourage the development and diffusion of environmentally friendly technologies

"Adopting environmentally-friendly actions, enhancing performance of energy and resource consumption, waste management and pollution control, and building up a green supply chain for the semiconductor industry with suppliers and customers through audit and cooperation" is one of TSMC environmental protection strategies. Please refer to "TSMC Environmental Policy", "Green Manufacturing" and "Innovation and Service - Sustainable Products" in this report.

78

Anti-Corruption

Businesses should work against corruption in all its forms, including extortion and bribery

Please refer to "Ethics and Regulatory Compliance" in this report. Please also refer to 2017 TSMC Annual Report: "3.5 Code of Ethics and Business Conduct".

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