Analysis of important disclosure issues

Survey on 18 sustainability issues, 495 valid questionnaires returned

In order to understand the concerns and expectations of important stakeholders on sustainability at WT, a survey questionnaire covering 18 sustainability issues was developed with reference to the GRI Sustainability Reporting Guidelines and related issues in the industry, as well as information collected from sustainability reports of other related enterprise. The survey was sent to stakeholders via the responsible department, and 495 valid questionnaires were returned for WT to comprehend stakeholders’major concerns.

Aggregate key stakeholder’s concerns and assess the level of impact

We conducted statistics and analyses on the stakeholders’sustainability questionnaires to compile their level of concerns. After discussions led by WT’s 15 senior executives, the extent of possible economic, environmental and social impacts and the likelihood of occurrence of each issue were evaluated with respect to each issue.

We have compiled the concerns of important stakeholders and evaluated the impact and potential of sustainability issues on the economic/environmental/social operations of WT, and listed six important issues such as information security, financial performance, Ethical management, talent attraction and retention, talent development, and sustainable supply chain, etc. In addition, considering the increasing importance of climate change, we added “Climate Change” as an issue. These seven issues will be the basis of the 2021 Sustainability Report.

In 2021, we will adopt a different approach to managing sustainability issues than we did in 2020, using the GRI themes as the sustainability issues survey in 2020. Among them, seven are in line with the major issues for 2020, while four substantive GRI themes, including indirect economic impact, labor/management relations, non-discrimination, and customer privacy, have been removed. Three new issues highly relevant to human capital are added, including market presence, training and education, diversity and equal opportunity. Energy, information security and social assessment of the supply chain have also been issues of great concern to the public in recent years.

14 GRI substantive themes, 24 disclosure indicators

We examine the GRI Sustainability Reporting Guidelines’ (GRI) 33 economic, environmental, and social themes, mapping them to key disclosure issues, and selected 14 substantive themes of relevance and 24 disclosure indicators to be covered in the 2021 report.

Defining the Sustainability Report’s Disclosure Boundary

The disclosure team held a meeting to review each important disclosure issue one by one, the impact of each issue on WT and throughout the value chain, later confirmed the disclosure boundary within the organization, which varies slightly depending on each issue.

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Report Description

WT Microelectronics'(hereafter abbreviated as WT)2021 Sustainability Report (hereafter referred to as ″this report″)is as follows: BASIS OF DISCLOSURE The information contained herein follows and was written according to the GRI standards (GRI Sustainability Reporting Standards) of the 2021 Sustainability Report (hereafter referred to as ″this report″). This report is also based on the Sustainability Accounting Standards Board’s (SASB) Multiline and Specialty Retailers and Distributors (MSR) Industry and the Task Force on Climate Change-related Financial Disclosures

CORPORATE GOVERNANCE

Focus on risk managementStrive for self-monitoring to align with the times WT has established a corporate governance structure to manage its business in accordance with the ROC Company Act, the Securities and Exchange Act and other relevant laws and regulations. We aim to pursue the long-term interests of our shareholders by enhancing corporate performance and accountability and by balancing the interests of our stakeholders.Under the Board of Directors are an Audit Committee, a Remuneration Committee