MPI established the ESG Committee, chaired by the President and comprising 13 senior executives from various operational centers/offices. The Committee is responsible for coordinating corporate sustainable development strategies and goals, setting short, medium, and long-term sustainability management goals and performance metrics, and reporting to the Board of Directors at least once a year. Additionally, task forces are formed based on the relevant departments corresponding to each field. Besides conducting the annual identification of ESG risk assessments and response measures, these task forces work together to achieve the sustainable development goals set by the committee, executing sustainability actions in phases.

Organization Chart of ESG Committee

Major Duties of ESG Committee and Teams

Stakeholder Engagement

MPI values stakeholder engagement, recognizing that the outcomes of these engagements directly or indirectly influence the company's sustainable operation direction. To understand stakeholder levels of concern regarding corporate sustainability and ensure effective communication, we provide appropriate and diverse communication channels. We also integrate stakeholder identification across various ISO management systems, using both active and passive modes to collect and investigate.

Management of Material Topics

MPI has consistently facilitated effective communication with various stakeholders over an extended period, utilizing the Sustainability Report to showcase significant ESG communication outcomes. In alignment with "GRI 3: Material Topics 2021," the Company conducted a dual materiality assessment, which evaluated issues based on stakeholder concern and operational impact. This assessment helped identify material topics and establish guidelines for managing performance. Each phase of this process is thoroughly deliberated by the pertinent ESG task groups and subsequently reviewed by the committee prior to final decision-making.

Selection of Concerned Issues and Material Topics

Matrix of Material Topics

We are committed to energy conservation, carbon reduction, and hazardous substance reduction to minimize environmental impact. Every plant is established in compliance with the local environmental protection laws and regulations and achieves a green environment at high standard. Hence, we began to implement and passed the certification of the ISO 14001 Environmental Management System (EMS)in 2016. In 2022 we passed the re-verification and obtained the certificate valid until September 19, 2025. Additionally, to enhance energy efficiency, we already implemented the ISO 50001 Energy Management System (EnMS) in 2016 and have since maintained its operation. Over the past three years, the total electricity savings have amounted to approximately 871,509 kWh, achieving an energy-saving rate of 1.53% in 2023, which could reduce approximately 176.37 tCO2e.

Waste

To effectively clean up waste, prevent environmental pollution, maintain environmental sanitation, and further realize the recycling, reduction, and de-harming of waste, we have established the “Waste Management Operation Instructions” for the sorting, central disposal, and reporting of waste by law. Based on their permits for hazardous waste and non-hazardous waste, we hire qualified contractors to handle waste clearance and disposal. We also continuously advocate waste reduction to minimize the environmental impact of our activities and ensure no environmental pollution or impact on biodiversity.

Water

At MPI, the 24-hour operation of air-conditioning cooling water and the manufacturing process of production lines of plants are the major sources of water consumption, and domestic water consumption and firefighting water consumption are the secondary sources of water consumption. As we consume less water than the semiconductor industry, we are not a water-intensive business. However, we continue to adhere to our water conservation plan towards the goal of “reduction, recycling, and reuse” and emphasize the reduction of wastewater and sewage discharge. As some plants discharge wastewater and sewage due to the needs of the manufacturing process, apart from establishing the “Wastewater Treatment Operation Instructions”, we have also applied for the water pollution prevention permit by law and equipped our plants with class B dedicated wastewater and sewage treatment specialists to implement strict wastewater and sewage control so as to ensure neither influence nor impact on the biodiversity and habitats in the nearby rivers and the biodiversity in protected areas.

GHG emissions

The annual greenhouse gas inventory serves as MPI’s assessment of overall carbon management status and as the basis for the carbon reduction plan. MPI has implemented the ISO 14064 Greenhouse Gas Management System and completed the initial verification of the Company’s greenhouse gas inventory in 2022. The scope of the inventory was further expanded in 2023. According to the 2023 verification results, carbon dioxide accounted for approximately 96.09% of total emissions, with Category 2 indirect emissions (purchased electricity) being the largest contributor at approximately 69.01%. Overall emissions increased by about 8.457% compared to 2022.

We fulfill corporate social responsibility (CSR) with our best efforts, value, manage, and monitor employee human rights. Based on our “Corporate SociaResponsibility Best Practice Principles”and in accordance with the international human rights conventions, we value workplace gender equality, protect the right to work of employees, and prohibit discrimination of any forms. We have also established internal regulations including the “Human Resources Management Procedures”, “Regulations for Gender Equality in Employment”, “Regulations for Measures of Prevention, Correction, Complaint, and Punishment of Workplace Sexual Harassment”, and “Code of Employee Ethics and Conduct” to protect employee human rights. Violation of employee human rights will be disciplined in accordance with the “Regulations for Employee Rewards and Disciplines”. We also continuously enhance the awareness of employee human rights and arrange education and training on the RBA-CoC and prevention of workplace sexual harassment for active employees to maintain workplace human rights.

Remuneration and Benefits

In addition to abiding by the local labor laws and regulations and salary standards, we also assess the salary standards in the talents market and the industry periodically to timely adjust the remuneration and benefits for employees based on the Company’s operational performance so as to keep the median salary of non-management employees above the average in the industry and ensure the positive salary growth. In accordance with Article 19 of the Company’s Articles of Incorporation, if there is profit before tax, we should allocate 0.1-15% of the profit as the remuneration for employees. In the past three years, we have allocated an average of over 10% of profit as remuneration for employees. As the expenses on employee benefits also increase every year, showing the fruit of our profit sharing with employees. More information please see the Careers.

Employee compensation to Median Ratio

Total Amount of Compensation for Employees in Past 3 Years

Retirement Allowance Program

Based on the applicability of the old and new systems (before and after July 1, 2005), we contribute the pension reserve for employees every month in accordance with the Labor Standards Act or Labor Pension Act. We have also established the Employee Pension Reserve Supervisory Committee to administer the affairs related to employee retirement to ensure sufficient coverage and confidence for retiring employees.

Occupational Health and Safety

Occupational safety and health are the foundation for building a friendly environment. We obtained the Occupational Health and Safety Assessment Series (OHSAS) 18001 certificate in 2016 and passed the version change certification to the ISO 45001 Occupational Health and Safety (OH&S) Management Systems in 2020. In 2022 we passed the verification of the OH&S management systems, and the certificate is valid until August 31, 2025. Through years of system implementation and third-party verification of system effectiveness, we spare no efforts in OH&S management.

Higher-risk factors that affect employee safety and health in the workplace are listed as monitoring items and under the routine supervision by dedicated personnel to reduce the probability of major accident hazards.

In accordance with Articles 30 and 31 of the Occupational Safety and Health Act, pregnant workers are not allowed to work at a site where lead and its compounds are spread or a harmful level of radiation is present or engage in work that involves the handling of objects above a specific weight or potential hazards on the health of the fetus or the mother. As some of our production lines involve the above conditions, factory nurses voluntarily conduct health protection assessment and healthcare consultation on pregnant workers to ensure perfect protection for both the pregnant workers and their fetuses. Simultaneously, for middle-aged, elderly, and high-risk workers with cardiovascular diseases, MPI will assess the health reports of high-risk employees. The comprehensive risk is evaluated based on age, cardiovascular risk and levels, work patterns, and overtime situations. High-risk individuals will undergo an interview to assess whether their tasks need adjustment, and regular follow-ups will be conducted.