ASE Technology Holding Co., Ltd. (TAIEX: 3711, NYSE: ASX), the leading provider of semiconductor packaging, test and system assembly services, today announced that it has been recognized for leadership in corporate sustainability by global environmental non-profit CDP, securing a place on its prestigious ?A List' for tackling climate change, as well as acting to protect water security ? two of the three environmental themes covered by CDP.
"ASE has been on the CDP Climate Change A List for four years since 2016. For the first time this year, we are proud to earn a spot on the CDP Water Security A List," said Jason Chang, Chairman, ASE Technology Holding. "We are honored to be among a small number of companies that achieved a double ?A', out of 5,800+ businesses that were scored in 2020. Climate change and water risks have brought about many challenges as well as opportunities, and ASE is committed to promote a climate-friendly, resilient and cost-effective business environment that will ensure continued growth for the semiconductor industry," he continued.
Actions for a climate resilient and water-secure future.
ASE has adopted the TCFD (Task Force on Climate-related Financial Disclosures issued by the Financial Stability Board) as part of its Enterprise Risk Management framework, to identify and manage climate change and water-related risks and opportunities. The analysis of various scenarios affecting climate change and water resources, and the simulation of possible results have enabled ASE to control risks within acceptable ranges. In practice, the company has applied green standards in the construction of factories, established potential flood analysis and emergency response measures, and commissioned smart grids to manage energy demand, avoid disruptions from power curtailment and maximize the distribution of electricity demand.
ASE has also built a diversified power supply system that helps promote the development of a green industry and the increased usage of renewable energy. In 2019, ASE's total consumption of renewable energy accounted for more than 14% of the total electricity consumption. The company has 7 plants in the world completely powered by renewable energy. ASE was also the first manufacturing company in Asia to issue a green bond in 2014, followed by a second green bond issue in 2019. The proceeds of the green bonds were used towards the construction of green manufacturing facilities and Taiwan's largest water recycling plant, that together contributed to a reduction of approximately 350,000 tons of CO2 emissions and up to 6.58 million tons of recycled water per year.
ASE has adapted data from Aqueduct to understand and respond to water risks and stresses faced by enterprises trying to balance operational growth amidst extreme climate conditions. The data helps ASE to plan medium and long-term water strategies to mitigate risks and improve resilience. The company also engages with the community and general public by opening a Green Technology Education Center for stakeholders to learn about the company's strategies to seasonal variation in water management.
Demonstrating environmental leadership.
Today's double A recognition has elevated ASE's sustainability leadership. ASE is now among the few global technology companies to be on two of the world's leading corporate environmental transparency standards - the CDP A Lists and the Dow Jones Sustainability Indices. Through significant demonstrable action on climate change and water security risks, more companies will be encouraged to follow ASE's lead on corporate environmental ambition, action and transparency.
About the CDP disclosure methodology.
CDP's (https://cdp.net/en) annual environmental disclosure and scoring process is widely recognized as the gold standard of corporate environmental transparency. In 2020, over 515 investors with over US$106 trillion in assets and 150+ major purchasers with US$4 trillion in procurement spend requested companies to disclose data on environmental impacts, risks and opportunities through CDP's platform. Over 9,600 responded ? the highest ever.
A detailed and independent methodology is used by CDP to assess these companies, allocating a score of A to D- based on the comprehensiveness of disclosure, awareness and management of environmental risks and demonstration of best practices associated with environmental leadership, such as setting ambitious and meaningful targets. Those that don't disclose or provided insufficient information are marked with an F. The full list of companies that made this year's CDP A List is available here, along with other publicly available company scores: https://www.cdp.net/en/companies/companies-scores
About ASE Technology Holding Co., Ltd.
ASE Technology Holding Co., Ltd. is among the leading providers of independent semiconductor manufacturing services in assembly, test, materials and design manufacturing. As a global leader geared towards meeting the industry's ever growing needs for faster, smaller and higher performance chips, ASE Technology Holding develops and offers a wide portfolio of technology and solutions including IC test program design, front-end engineering test, wafer probe, wafer bump, substrate design and supply, wafer level package, flip chip, system-in-package, final test and electronic manufacturing services. For more information about ASE Technology Holding, please visit www.aseglobal.com or follow us @asegroup_global and https://www.linkedin.com/company/asegroup-global
Safe Harbor Notice
This press release contains "forward-looking statements" within the meaning of Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended. Although these forward-looking statements, which may include statements regarding our future results of operations, financial condition or business prospects, are based on our own information and information from other sources we believe to be reliable, you should not place undue reliance on these forward-looking statements, which apply only as of the date of this press release. The words "anticipate," "believe," "estimate," "expect," "intend," "plan" and similar expressions, as they relate to us, are intended to identify these forward-looking statements in this press release. These forward-looking statements are necessarily estimates reflecting the best judgment of our senior management and our actual results of operations, financial condition or business prospects may differ materially from those expressed or implied by the forward-looking statements for reasons including, among others, risks associated with cyclicality and market conditions in the semiconductor or electronic industry; changes in our regulatory environment, including our ability to comply with new or stricter environmental regulations and to resolve environmental liabilities; demand for the outsourced semiconductor packaging, testing and electronic manufacturing services we offer and for such outsourced services generally; the highly competitive semiconductor or manufacturing industry we are involved in; our ability to introduce new technologies in order to remain competitive; international business activities; our business strategy; our future expansion plans and capital expenditures; the strained relationship between the Republic of China and the People's Republic of China; general economic and political conditions; the recent shift in United States trade policies; possible disruptions in commercial activities caused by natural or human-induced disasters; fluctuations in foreign currency exchange rates; and other factors. For a discussion of these risks and other factors, please see the documents we file from time to time with the Securities and Exchange Commission, including the 2019 Annual Report on Form 20-F filed on March 31, 2020.
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