ESG

As a fabless IC design company, ASPEED Technology believes that the greatest contribution we can make to environmental protection is to use our core capabilities of IC R&D and design to make products that use less energy and produce less carbon. In this way, we can contribute towards a low carbon semiconductor supply chain. At the same time, we integrate green concepts into our supplier management, so that we can minimize the relatively high environmental impact of backend manufacturing. Internally, we focus on strengthening energy saving and carbon reduction awareness among employees. We actively respond to environmental and emissions topics, and we adopt third-party GHG inspections and certification as part of our focus on green design, green supply, and green lifestyle. In this way we can contribute to making the environment better.

Mid- and Long-Term Environmental Objectives

Green Lifestyle:

• Promote corporate decarbonization and buy renewable energy.
• Take inventories of GHG emissions and gradually implement management measures and carbon reduction objectives.
• Implement operation process with the introduction of digital transformation system to achieve low-carbon operation and improve office efficiency.
• Save energy in the office; gradually replace lighting and water equipment.
• Continue to plan and promote sustainability-related education and training to raise employees’ sustainability awareness.
• Respond to domestic and international environmental protection and carbon reduction initiatives, actively participate in international competition.

Green Supply:

• Have suppliers sign ASPEED Technology’s corporate social responsibility pledge and increase the signing rate.
• 100% of the minerals used by our suppliers shall be conflict-free.
• Continuously increase local procurement of key raw materials.

Green Design:

• Make each generation of SoC more energy efficient.
• Develop a simplified product design framework; consider design and manufacturing improvements from every angle to further reduce pollution during manufacturing.
• Continuously invest in manpower and budget and strive for green innovation and R&D.
• Green innovation R&D embedded in the business secret registration system.

GHG and Energy Resource Management

Since ASPEED Technology does not operate a factory, internal energy management focuses on three areas: everyday operations (water and electricity use), GHG inventory, and waste management. ASPEED Technology’s Sustainability Committee reports sustainability execution results biannually to the Board of Directors. In response to environmental topics and reduction of GHG, we do not operate a factory, but we still hope to play a role in the global climate change in the semiconductor industry chain. In 2022, ASPEED Technology has completed the ISO14064-1:2018 third-party GHG inspection certification at the organizational level, aiming to have a clear understanding of ASPEED’s GHG emissions, then gradually develop a carbon reduction plan, and respond to the requirements of customers and investors to set carbon reduction targets, thereby ultimately achieving the net zero carbon emission target within the scope of operations. In response to the carbon reduction plan, it is expected to be presented to the Board for approval in 2023, and the carbon management project will be implemented gradually through the purchase of renewable energy and the implementation of the SBTi SME near-term target planning and application.

Currently, the focus of the operational resource management plan has been implemented. We are continuously promoting awareness of energy conservation and water saving among our employees:

• All lights are replaced with LED tubes.
• Distributed control of lighting to reduce electricity use.
• During off-work hours (at a set time each evening) lighting is automatically turned off.
• Encourage employees to replace in person visits with virtual meetings.

Waste Management

Since ASPEED Technology does not operate a factory, the Company mostly produces general non-hazardous waste as well as some industrial waste from operations. Day-to-day waste management therefore primarily involves implementing strict waste separation, recycling, and composting of kitchen waste. The goals are to achieve recycling and reuse while encouraging employees to do everything they can to reduce waste production. General non-hazardous waste is disposed of in the building where ASPEED Technology’s headquarters is located; there is not a separate scale to measure weight. In the future, the Company will research the feasibility of weighing the waste before disposal. The industrial waste types that the Company produces are ICs, BGA IC substrates, PCBs, and other items used for R&D. Each year the Company commissions an operator with a Level A waste management license to dispose of these items in accordance with procedures that include making an inventory, taking photos, and recording weight. Throughout the process, the Company designates staff to provide oversight. In 2022, ASPEED Technology did not produce hazardous waste from operation.

GHG Inventory and Carbon Reduction Planning

As an IC design company that does not operate a factory, ASPEED Technology focuses on taking a responsible role in the semiconductor supply chain by proactively conducting GHG verification and carbon reduction planning. In 2021, we started the GHG inventory and obtained ISO14064-1:2018 external inspection certification in August 2022. In the future, we will continue to disclose GHG emissions in an open and transparent manner. 2021 was the Company’s base year for GHG emissions. We check our emissions every year and formulate a net zero target and carbon reduction plan of ASPEED.

* The GHG inventory after inspection in 2022 showed that there were no nitrogen oxides (NOx), sulfur oxides (SOx), perfluorinated compounds (PFCs), and other major gas emissions.