ESG Performance Highlights in 2023
Environmental Performance Social Performance
- GHG emissions per unit：11.3 kg CO2e/8-inch equivalent wafer photomask layer
- Power consumption per unit：13.19 kWh/8-inch equivalent wafer photomask layer
- Waste generated per unit：0.56 kg/8-inch equivalent wafer photomask layer
- Water consumption per unit：0.107 ton/8-inch equivalent wafer photomask layer
Social Performance
- The number of full-time employees：20,233
- Per employee training hours：31
- The number of fresh graduates recruited：nearly 1,000
- The number of courses offered：over 3,500
- Employee volunteer service hours：24,640
- The SMIC Liver Transplant Program for Children has helped underprivileged children：832
- The cumulative donation amount of the SMIC Liver Transplant Program for Children is nearly：45 million yuan
Letter from the Chairman
DEAR READERS,
Over the past 23 years, SMIC has won trust, support and help of friends from all walks of life. On behalf of the Board of Directors and the Management of SMIC, I would like to extend our sincere gratitude and best wishes to everyone who cares about and supports the development of SMIC.
Looking back to the year of 2023 we witnessed the world's unprecedented changes in a century, fierce competition in the global semiconductor market and profound changes in the industry. SMIC has always adhered to the general principle of pursuing progress while ensuring stability. We united to overcome difficulties, and withstood the test of severe challenges in various aspects including technology R&D, production, operation and market supply chain. Our overall business indicators remain stable, demonstrating the resilience of our development. Under the strong leadership of the Board of Directors and with the joint efforts of the management and employees, SMIC has been a firm practitioner to ESG governance and adhered to the commitment to sustainable development. With the care and support from all sectors of the society, we continue to strengthen our corporate governance, practice the concept of environmental protection, safeguard the rights and interests of employees, engage in public welfare activities, and enhance our ESG governance capabilities, earning extensive recognition from the society. SMIC has always regarded solid corporate governance as the cornerstone of sustainable development. The Company, under the leadership and supervision of the Board of Directors, tracks the policy updates of regulators and the development of capital market in real time, actively performs the responsibilities and obligations of ESG governance, and strengthens risk management and control, to ensure that the Company operates in compliance with relevant laws and regulations. We are also making constant innovation on our journey of corporate development, winning the trust of customers world-wide with better products and services, while making steady progress on the path of sustainable development.
Strengthening corporate governance while firmly enhancing the resilience of the development. We made solid progress in management reform, continued to improve the governance structure with the Board of Directors as the core decision-making body and facilitated the participation of all departments in ESG management. Upholding a customer-centric approach, we are committed to creating long-term values for customers and building mutually beneficial and deeply integrated partnerships. Meanwhile, we made constant efforts to raise risk management awareness and strengthen the compliance management of suppliers and other related parties, building a clean and honest business environment.mechanisms, and continuously improve our staff training systems. We have integrated humanistic care into our corporate gene, strengthened the cohesion of our teams with long-cultivated corporate culture, and made every effort to create a warm, loving and energetic working environment, to facilitate a holistic employee development.
Firmly practicing the concept of environmental protection while actively implementing green production. SMIC has made great efforts in environmental protection, including formulating and implementing a framework responding to climate change, integrating energy-saving, emission reduction and environmental efficiency targets into production and operation, improving the internal environmental performance incentive policy, and setting up special awards for energy-saving achievements. We forged ahead with factory land intensification, harmless raw materials, clean production, waste recycling, and energy decarbonization. SMIC now has five sites certified as green factories and five main plants certified as green buildings.
Safeguarding the rights and interests of employees while providing the warmest care. SMIC has more than 20,000 employees around the world. Valuing and cherishing our employees, we continue to optimize remuneration incentives and benefits system for employees and build a multi-path talent development system and differentiated training mechanisms, providing our employees with a broad stage to make the best of their talents and wholeheartedly addressing their most immediate and pressing concerns.
Actively participating in public welfare activities while taking the initiative to fulfill social responsibilities. 2023 marks the first year that SMIC carried out environmental protection activities at the group level, and all sites joined hands to carry out a series of activities, contributing a total of nearly 25,000 hours to public welfare activities. In addition, we continued to promote the philanthropic program "SMIC Liver Transplant Program for Children". Together with our employees and caring individuals, we have donated nearly RMB 45 million, assisting 832 children with liver disease regain their health.
Staying true to the initial intention, we insist on the journey of developing the Company. In the new year, SMIC will continue to undertake the original mission of "making SMIC stronger, better and bigger, and participating in the international competition on behalf of the IC industry". In adherence to the principles of responsible governance and putting people first, we will devote ourselves to environmental protection, fulfill our social responsibilities, and cultivate the path of sustainable development, making greater contribution to creating a prosperous, harmonious and better future.
Chairman of the Board
Dr. Liu Xunfeng
