ABOUT OUR COMPANY 09 Company Profile 10 Global Operation 11 Products and Services 13 Financial Performance ABOUT OUR REPORTING 14 R&D and Innovation OUR VISION COMMUNICATION AND 05 Letter from the Chairman STAKEHOLDER ENGAGEMENT 07 Our Commitment to Corporate Responsibility 18 Identification and Communication with Stakeholders 07 Managing Corporate Social Responsibility 19 Stakeholder Materiality Assessment 22 Participation in External Organizations CORPORATE GOVERNANCE EMPLOYEE CARE SOCIAL INVOLVEMENT 24 Governance Structure 56 Employee Recruitment & Structure 75 Environmental Conservation Fund (ECF) Programs 27 Code of Business Conduct and Ethics 58 Retention, Compensation & Welfare 79 Charity and Social Work 28 Regulatory Compliance 62 Training and Development 82 Academic Collaboration 29 Risk Management 63 Employee Communication 83 Global Community Engagement 64 Health and Safety ENVIRONMENTAL SUPPLY CHAIN APPENDIX SUSTAINABILITY DEVELOPMENT 85 ASE Group – Corporate Milestones 31 Climate Change Management & Mitigation 66 Supplier Management 87 2010-2014 Awards and Recognition from Government and National/International 33 Green Facility 69 Contractor Management Authoritative Bodies 37 Energy Management and Conservation 71 Green Supply Chain 89 ASE Environmental Data 41 Water Resource Management 72 Conflict Minerals Compliance 91 ASE Health and Safety Data 44 Pollution Prevention 92 Third Party Assurance Statement 49 Green Manufacturing 93 Index of GRI G4 Indicators 52 Environmental Expenditure 103 Contact Information As a responsible corporate citizen, ASE has taken proactive measures to ensure the highest standards of professional and ethical business conduct. We believe that the sustainable development of our enterprise and the realization of its social responsibilities are vital to our long-term strategies and success. 1 • ABOUT OUR REPORTING In this report, we discuss our sustainability activities in 2014. Below are a few key highlights: Water Recycling Green Bond Green Building Environmental Water Resource Plant Conservation Fund Management We invested about US$25 In 2014, we issued Asia's first As of December 2014, we Started from 2014, we would In 2014, we achieved a 7.5% million (NT$750 million) to corporate green bond which had achieved Taiwan EEWH contribute a total amount of reduction in the total water complete Phase 1 of water was valued at US$300 million certification for 9 new and US$95 million (NT$ 3 billion) to withdrawal compared to recycling plant K14. This is and awarded Country Deals of existing buildings (2 "Diamond- support environmental conservation 2013, while increasing our Taiwan's first water recycling the Year 2014 by Asiamoney. rated", 2 "Copper-rated", 5 programs including environmental production capacity as well as plant capable of treating This demonstrates our "Qualified") as well as one education promotion program, incorporating new plants. This 20,000 metric tons of commitment to low-carbon "Platinum-rated" U.S. LEED environmental quality enhancement is a significant milestone of our wastewater and producing and climate resilient growth. certification. program, environmental impact water resource management. at least 10,000 metric tons of minimization program, and purified recycled water daily. environmental charity sponsorship program for the next 30 years. 2 • ABOUT OUR REPORTING ABOUT OUR REPORTING Scope of the Report External Assurance This is our 6th CSR Report, which This report encompasses our Corporate Social ASE engaged Deloitte to perform an was compiled in accordance with Responsibility activities for the year of 2014 independent limited assurance in accordance in our semiconductor packaging, testing with ISAE 3000 standard on this Report. The the core option of the GRI G4 and materials (ATM) facilities and electronic independent assurance statement can be Sustainability Reporting Guideline. manufacturing services (EMS) facilities. Any found at the end of this report. Our Corporate CSR Center is in charge scope adjustment of the data will be separately of data compiling and editing. The explained in the text of the Report. Financial Other CSR Reports in ASE G4 framework content and a cross- figures in this report are expressed in US Group reference table of GRI indicators can dollars unless otherwise specified. be found at the end of this report. Under ASE Group, we also publish two separate This report is available in both Chinese Internal Review and Approval CSR reports. One provides more detailed and English. The complete electronic sustainability information of our Kaohsiung The disclosed information and data in the version can be downloaded from our facilities in Taiwan and the other focuses report were initially verified by the relevant on the information about our subsidiary website, www.aseglobal.com. managers of the data/information providers. "USI" (Universal Scientific Industrial Co., Ltd) The initial draft was compiled by the Corporate electronic manufacturing services facilities. If you have any comments or CSR Center. After reviewed by the Corporate suggestions, please contact us at: Legal and Finance Departments, the final Corporate CSR Center, The Advanced report was approved and authorized for issue by the Chief Operating Officer. Semiconductor Engineering Group ASE Kaohsiung CSR Report Address: No.26, Chin 3rd Rd., N.E.P.Z., Nantze, Kaohsiung, Taiwan Tel: +886-7-361-7131 Email: [email protected] USI CSR Report 3 • ABOUT OUR REPORTING ASE Cultural & Educational Foundation ASE Charitable Foundation ISE Labs ASE Kaohsiung ASE Japan ASE Chungli ASE Korea ASE Nantou ASE Singapore ASE Malaysia Universal Scientific ASE Kunshan Industrial(USI) ASE Shanghai(A&T) Zhangjiang Shenzhen ASE Shanghai(Material) Jinqiao Taiwan Kunshan Mexico ASE Suzhou(ASEN) ASE Weihai ASE Wuxi(Tongzhi) 4 • ABOUT OUR REPORTING OUR VISION Letter from the Chairman 2014 marked the 30th anniversary of the ASE the ASE Group as it registered net revenues of Group and was the year where the company's NTD256,600 million, an increase of 16.7% year history was slightly blighted by a brief lapse on year, and net income of NTD24,200 million, in our operating procedures on wastewater an increase of 50% year on year. ASE's assembly management at one of ASE's manufacturing and test operations recorded net revenues of plants in Kaohsiung, Taiwan, in December NTD159,700 million, an increase of 11.4% 2013. In hindsight, the crisis turned out to be year on year, and the electronic manufacturing an opportunity for ASE to further strengthen systems operations recorded net revenues of its internal infrastructures and policies in NTD105,900 million, an increase of 34.8% year the management of environmental issues on year. including wastewater discharge processes. At the same time, the company also managed to Our industry is moving rapidly towards a digitally provide better disclosure and transparency in connected world and the era of the Internet of addressing corporate social responsibilities to the Things (IoT). In order to serve our customers stakeholders. Adhering to the Chinese axiom and anticipate market needs, ASE developed a of "one shall rise from the place where one fell", strategic eco-system by entering into partnerships we humbly accepted responsibility and united with key industry players to research, develop and together to resolve the challenges and move offer value-added services in IC assembly, test and forward into the future. Our responses and system level manufacturing. Our world is also actions demonstrate the true spirit of ASE. increasingly faced with the challenges of climate change, risks of environmental damage and The global semiconductor assembly and test resource limits. In 2014, the company embarked industry benefited from the rise in the demand of on a series of sustainability programs to build Jason C.S. Chang communications chips and consumer electronics cleaner factories and green manufacturing. In Chairman and CEO to record another year of growth in 2014. the same year, ASE issued a US$300 million green 2014 was also another record breaking year for bond that will be used to fund green buildings 5 • OUR VISION and sustainability projects such as the construction ASE has built up a solid foundation over the and comfortable working environment for our of green factories and offices, wastewater last 30 years and the company had enjoyed the employees and for the local community. I would recycling plant, wastewater monitoring and great support and trust from its employees and like to take this opportunity to sincerely thank energy conservation. ASE also committed to customers, as well as from the direct supervision all our employees for their hard work, and our a NTD100 million per year funding to protect and guidance of the community and governing investors and customers for their continued trust Taiwan's environment in the next 30 years. authorities. We aim to continue our leadership and support. I am also grateful to the various by providing value in our services and at the agencies who had provided their professional To further embed corporate sustainability into same time, caring for the environment through advice and guidance to ASE in the past year. ASE's corporate culture, we created a "Corporate our corporate sustainability culture. In 2015, Sustainability Committee" comprising of ASE will operate Taiwan's largest wastewater Jason C.S. Chang Richard H.P. Chang members from ASE's highest level of governance recycling facility at our Kaohsiung campus. Chairman and CEO Vice Chairman