CORPORATE SOCIAL RESPONSIBILITY REPORT The Adv anc ed Sem i c onducto r Eng ine e r ing Group CONTENTS ABOUT OUR REPORTING ENVIRONMENTAL SUSTAINABILITY SUPPLY CHAIN DEVELOPMENT 17 Green Enterprise 50 Supplier Management OUR VISION 21 Environmental Data 51 Green Supply Chain Management 03 Letter from the Chairman 23 Energy Management and Conservation 54 Contractor Management 05 Our Commitment to Corporate Responsibility 26 Water Resource Management 06 Managing Corporate Social Responsibility 27 Pollution Prevention SOCIAL PARTICIPATION 30 Carbon Management 55 Industry - University Collaboration ABOUT OUR COMPANY 31 Green Products 57 Social Care 07 ASE Product Value Chain 35 Raw Materials 62 Future Plan 09 Products and Services 36 Environmental Expenditures 10 Research and Development APPENDIX 10 Financial Results EMPLOYEE CARE 63 ASE Group - Corporate Milestones 11 Management and Corporate Governance 38 Our Workforce : Diversity and Education 64 2008-2013 Awards and Recognition from 12 Management and Evaluation of Operational Risks 41 Employee Advancement Government and National/International 42 Employee Communication Authoritative Bodies COMMUNICATION AND STAKEHOLDER ENGAGEMENT 42 Remuneration and Benefits 66 Third Party Audit Report 14 Identification and Communication with Stakeholders 44 Employee Retention 67 Index of GRI G3.1 Indicators 16 Participation in External Organizations 46 Employee Safety and Health 76 Contact Information CONTENTS ABOUT OUR REPORTING ENVIRONMENTAL SUSTAINABILITY SUPPLY CHAIN DEVELOPMENT 17 Green Enterprise 50 Supplier Management OUR VISION 21 Environmental Data 51 Green Supply Chain Management 03 Letter from the Chairman 23 Energy Management and Conservation 54 Contractor Management 05 Our Commitment to Corporate Responsibility 26 Water Resource Management 06 Managing Corporate Social Responsibility 27 Pollution Prevention SOCIAL PARTICIPATION 30 Carbon Management 55 Industry - University Collaboration ABOUT OUR COMPANY 31 Green Products 57 Social Care 07 ASE Product Value Chain 35 Raw Materials 62 Future Plan 09 Products and Services 36 Environmental Expenditures 10 Research and Development APPENDIX 10 Financial Results EMPLOYEE CARE 63 ASE Group - Corporate Milestones 11 Management and Corporate Governance 38 Our Workforce : Diversity and Education 64 2008-2013 Awards and Recognition from 12 Management and Evaluation of Operational Risks 41 Employee Advancement Government and National/International 42 Employee Communication Authoritative Bodies COMMUNICATION AND STAKEHOLDER ENGAGEMENT 42 Remuneration and Benefits 66 Third Party Audit Report 14 Identification and Communication with Stakeholders 44 Employee Retention 67 Index of GRI G3.1 Indicators 16 Participation in External Organizations 46 Employee Safety and Health 76 Contact Information About Our Reporting 1 ABOUT OUR REPORTING Scope Basis of Disclosure ASE Kaohsiung (ASEKH) As a responsible corporate This report encompasses our Corporate Social This report was prepared in accordance with the Responsibility activities for the year 2013 in our Global Reporting Initiative guidelines, and the citizen, ASE has taken proactive ASE steps to ensure the highest semiconductor packaging and testing and materials AA1000 Accountability Principle Standards. In facilities located in Taiwan, China, Japan, Korea, accordance with such guidelines, this report has ChungLi standards of professional and (ASECL) Malaysia, Singapore, and the US. A portion of the been assessed and approved by a third-party ethical business conduct. We contents cover Corporate Social Responsibility agent as meeting the G3.1 A+ Application Level. ASE believe that the sustainable activities from our Universal Scientific Industrial development of our enterprise Nantou Group electronic manufacturing services facilities (ASENT) and the realization of its social located in Taiwan, China and Mexico, and where ASE ASE responsibilities are vital to our noted as such. Financial figures in this report are ASE Kunshan ASE Korea long-term strategies and success. expressed in US dollars unless otherwise specified. Shanghai - A&T (ASEKS) Japan (ASEKR) (ASESH-A&T) (ASEJP) This report is available in both ASEN (ASE Suzhou) ASE Chinese and English. The com- Malaysia plete electronic version may be ASE (ASEML) downloaded from our website, Shanghai - Material (ASESH-Material) ASE http://www.aseglobal.com/. Weihai If you have any comments or (ASEWH) ASE suggestions, contact us at Wuxi Tongzhi Singapore [email protected]. (ASESG) (ASE Wuxi) USI Group ISE Labs About Our Reporting 2 ABOUT OUR REPORTING Scope Basis of Disclosure ASE Kaohsiung (ASEKH) As a responsible corporate This report encompasses our Corporate Social This report was prepared in accordance with the Responsibility activities for the year 2013 in our Global Reporting Initiative guidelines, and the citizen, ASE has taken proactive ASE steps to ensure the highest semiconductor packaging and testing and materials AA1000 Accountability Principle Standards. In facilities located in Taiwan, China, Japan, Korea, accordance with such guidelines, this report has ChungLi standards of professional and (ASECL) Malaysia, Singapore, and the US. A portion of the been assessed and approved by a third-party ethical business conduct. We contents cover Corporate Social Responsibility agent as meeting the G3.1 A+ Application Level. ASE believe that the sustainable activities from our Universal Scientific Industrial development of our enterprise Nantou Group electronic manufacturing services facilities (ASENT) and the realization of its social located in Taiwan, China and Mexico, and where ASE ASE responsibilities are vital to our noted as such. Financial figures in this report are ASE Kunshan ASE Korea long-term strategies and success. expressed in US dollars unless otherwise specified. Shanghai - A&T (ASEKS) Japan (ASEKR) (ASESH-A&T) (ASEJP) This report is available in both ASEN (ASE Suzhou) ASE Chinese and English. The com- Malaysia plete electronic version may be ASE (ASEML) downloaded from our website, Shanghai - Material (ASESH-Material) ASE http://www.aseglobal.com/. Weihai If you have any comments or (ASEWH) ASE suggestions, contact us at Wuxi Tongzhi Singapore [email protected]. (ASESG) (ASE Wuxi) USI Group ISE Labs Our Vision 3 OUR VISION Letter from the Chairman Despite the global economic uncertainty in Protection Bureau (KEPB) and the Kaohsiung 2013, the ASE Group maintained a stellar District Prosecutors office as a result of an alleged record of growth in revenues. The results wastewater disposal violation that occurred were largely due to the rising growth in on October 1, 2013. While we believe that the orders for communication chips in mid and October 1 incident had no significant negative low-end smartphone applications, emerging impact to the environment, it did expose the need opportunities in Wi-Fi modules and wearable for more efficient systems and stronger standard devices, as well as new market innovations in operating procedures in wastewater management fingerprint identification applications. policies and procedures. With the help of the KEPB and independent third-party environmental As a leader in the outsourced semiconductor consultants, we have made substantial investments packaging and testing services, ASE is fully to improve our management of wastewater and conscientious of the needs to operate in the prevent future occurrences of non-compliance in most socially responsible ways. The 2013 wastewater disposal. CSR report outlines our continuous efforts in sustainability programs leveraging on our During 2013, we have also invested NT$750 technological advances to benefit our employees, million in a water recycling plant at ASE the community and the environment. Kaohsiung’s K14. This will be Taiwan’s first water recycling plant that is capable of In December 2013, our K7 Plant’s wafer-level treating 20,000 metric tons of wastewater process line, where nickel is used and where and producing at least 10,000 metric tons wastewater treatment is required, came under of purified recycled water daily. The water scrutiny by the Kaohsiung City Environmental recycling plant is scheduled to begin operations Jason C.S. Chang Chairman and CEO Our Vision 4 in 2015 Q1. When K14 operates at full capacity, least NT$100 millions annually for the next 30 our Kaohsiung facilities' wastewater discharge years to Taiwan’s environmental protection will be reduced by more than 3.6M metric tons efforts. per year, which is equivalent to 1,440 Olympic- sized swimming pools of water. We continue to innovate and develop manufacturing processes for green products Over the past few years, we began constructing and wastewater management. We will also put our new factories in accordance to green more focus on the benefits for our employees to standards and have been awarded international improve their life at work and outside of it. In certification. In 2013, ASE K12 achieved the the next year, you will see greater transparency LEED Platinum certification, the highest possible in our reporting system as well as more of our rating from the United States Green Building CSR programs with the corresponding results. Council (USGBC). The ASE K12 building is the world’s first semiconductor assembly and test facility to be accorded the double certification of both EEWH Diamond and LEED Platinum. Going Jason C.S. Chang Richard H.P. Chang forward, we are progressively upgrading current Chairman and CEO Vice Chairman and President buildings to green standards.