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As climate change intensifies and biodiversity continues to decline, environmental and ecological issues have become priorities for corporate sustainability. In addition to monitoring the impact of their operations on nature, the Company must further understand its dependence on natural capital and how associated risks and opportunities are transmitted through the value chain. This year, RichWave introduced the TNFD (Task Force on Nature-related Financial Disclosures) framework for the first time. Following the TNFD LEAP methodology (Locate, Evaluate, Assess, and Prepare), the Company identified whether its operations and key supplier sites are located in potentially ecologically sensitive areas, assessed its dependencies and impacts on natural capital, and analyzed nature- related risks and opportunities highly relevant to the Company. Consequently, RichWave has developed corresponding management strategies and ecological action plans to bolster its risk management capabilities and operational resilience regarding nature-related issues.
Identify Ecologically Sensitive Factory Sites (Locate)
To identify whether RichWave's business locations and those of its key suppliers are located in potentially ecologically sensitive areas, the Company has assessed their ecological sensitivity through geospatial overlay analysis, following the "Locate" stage of the TNFD LEAP methodology.
Locate Evaluation Process
Target Audience Selection for Positioning Analysis
The following scope was included in the positioning analysis:
- RichWave’s business locations include its Taipei head office and its Zhubei office.
- RichWave's Key Suppliers in Taiwan: 11 key suppliers, including raw material suppliers and OSATs, with a total of 23 sites located in Tainan, Taichung, Hsinchu, and Taoyuan.
Analysis Tool
The following tools are used for overlay analysis:
- Taiwan Ecological Network.
- WWF Risk Filter Suite: BirdLife International’s World Database of Key Biodiversity Areas, accessed via the Biodiversity Risk Filter tool.
Positioning Analysis Results
Mammalian Hotspot Overlay Analysis
The analysis results show that RichWave’s business locations and those of its key suppliers are not located within mammal biodiversity hotspots.
Overlay Analysis of Breeding Bird Hotspots
The analysis results show that RichWave's business locations are not located within breeding bird biodiversity hotspots; however, three of its key suppliers' sites are.
Biodiversity Risk Filter Overlay Analysis
The analysis results show that the business locations of both RichWave and its key suppliers are situated in areas categorized as Medium or Low risk within Key Biodiversity Areas (KBA).
Note1. Key Biodiversity Areas (KBAs) are categorized and defined as follows 1) Very Low: No overlap with the 15km buffer zone around
the KBA (no overlap with the KBA) 2) Low: Overlap with the 15km buffer zone around KBA (no overlap with KBA)
3) Medium: Overlap with KBA >0% - 10%
4) High: Overlap with KBA >10% ~ 50%
5) Very High: Overlap with KBA by more than 50
Note2. Orange dots represent medium-level locations (17 in total); yellow dots represent low-level locations (8 in total); white dots represent Taichung landmarks, which are not RichWave locations or suppliers
Comprehensive Analysis Results
Analysis results from the Taiwan Ecological Network and the WWF Risk Filter Suite indicate that none of RichWave's business locations are located within potentially ecologically sensitive areas. Among its key suppliers, however, three sites are located within potentially ecologically sensitive areas (breeding bird hotspots). Consequently, the Company has further designated three key supplier sites located within breeding bird hotspots as potentially ecologically sensitive sites, situated in Qionglin (Hsinchu), Zhudong (Hsinchu), and Guishan (Taoyuan).
RichWave conducted further evaluations of these three supplier locations. Two of the suppliers have established comprehensive biodiversity assessment and management plans, while the remaining location is not a product manufacturing facility commissioned by the Company. Overall, no immediate ecological risks have been identified at the Company's own business locations or those of its main value chain.
Screening of Natural Dependencies and Impacts (Evaluate)
RichWave is an IC design Company whose primary business activities focus on product design and office-based operations. The Company is not directly involved in wafer fabrication or assembly and testing; these processes are mainly handled by wafer foundries and OSATs further downstream in the value chain. However, the semiconductor industry is highly dependent on natural capital. The risks and opportunities arising from nature-related dependencies and impacts may be transmitted through the value chain, potentially affecting the stability of the Company's operations and its long-term development. Therefore, in alignment with the "Evaluate" stage of the TNFD LEAP framework, RichWave has systematically mapped the nature-related dependencies and impacts across its direct operations and upstream/downstream value chain, establishing a reference for nature-related governance and strategic planning.
Evaluation Process
To identify the dependencies or impacts of its business activities on nature and biodiversity, RichWave referred to the ENCORE tool (Exploring Natural Capital Opportunities, Risks and Exposure) and the TNFD Draft Sector Guidance for Technology and Communications (hereinafter referred to as the TNFD Guidance) to review and analyze the potential nature-related dependencies and impacts associated with the semiconductor industry and its value chain manufacturing activities.
Reliance of RichWave and Its Value Chain on Ecosystem Services
According to the dependency analysis results, although RichWave mainly focuses on IC design and office-based operations and is not directly involved in manufacturing, its value chain is part of the semiconductor industry, which relies heavily on various ecosystem services. This dependency on natural capital is most pronounced in the downstream manufacturing stages.
Dependencies covered in this analysis span provisioning services (water resource regulation) as well as regulating and maintenance services (global climate regulation, sub-continental scale rainfall pattern regulation, micro- and meso-scale local climate regulation, air purification, soil and sediment retention, solid waste treatment, water purification, water flow regulation, flood and storm protection, noise attenuation, atmospheric and ecosystem dilution effects, and the regulation of sensory impacts, excluding noise). RichWave analyzed the 15 dependencies listed above. Among these, the dependence on water supply, water purification, and air purification functions was relatively high; consequently, they have been identified as key dependencies. Key dependency factors are described as follows:
Key Dependency Factors
| Dependency | Dependency Level | Dependency Factor Description | Corresponding NaturalCapital | CorrespondingValue Chain | |
|---|---|---|---|---|---|
| Provide Services | Water Resource Provisio | Very High | Water resources are critical to semiconductor manufacturing and facility operations, and are used in large quantities mainly for air purification, temperature control, water purification, and cooling systems. As a direct physical input, corporate manufacturing processes are highly dependent on a sufficient supply of freshwater from surface and groundwater sour | Water Resources, Freshwater Ecosystem | Downstream |
| Regulating and Maintenance Service | Water Purification | Very High | Water purification services refer to the process by which ecosystems remove or decompose nutrients and other pollutants in water bodies to restore and maintain the chemical condition of surface and groundwater, thereby mitigating the negative impact of pollutants on human use and health. This is usually a final or intermediate ecosystem servic | Species, Structure and Biological Integrity, Water Resources, Freshwater Ecosystem | Downstream |
| Air Purification Function | High | Air purification services are facilitated by ecosystem elements, most notably vegetation, which filter atmospheric pollutants through deposition, absorption, fixation, and sequestration, thereby mitigating adverse impacts on both environmental and human health. Usually defined as the final ecosystem service. | Species, Structure and Biological Integrity | Downstream | |
The Impact of RichWave and Its Value Chain on Changes to the Natural State
According to the impact analysis outcome, the semiconductor industry, to which RichWave and its entire upstream and downstream value chain belong, may still affect various ecosystem services during operation and manufacturing. The relevant pressures are mainly concentrated on the impact that downstream manufacturing processes have on natural capital.
The items analyzed include GHG emissions, land system use, water resource use, solid waste management and recycling, non-GHG air pollutant emissions, toxic pollutant emissions into water and soil, disturbances (noise and light pollution), upstream raw material use, and pollutant removal (wastewater discharge), for a total of nine potential impact categories. Among these, GHG emissions, water resource utilization, non-GHG air pollutant emissions, and upstream raw material utilization have a relatively high degree of impact and are therefore identified as key impact items. The key impact factors are described below:
Key Impact Factors
| Impact | Impact Level | Impact Factor Description | Corresponding Natural Capital | Corresponding |
|---|---|---|---|---|
| GHG Emissions | High | Human activities produce GHGs, including carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), sulfur hexafluoride (SF6), hydrofluorocarbons (HFCs), and perfluorocarbons (PFCs). | Atmosphere, terrestrial topography, minerals, marine bathymetry, soil and sediments, species, structures and biological integrity, water resources | Self, Upstream, and Downstream |
| Water Resource Use | Very High |
|
Atmosphere, terrestrial topography, minerals, marine bathymetry, soil and sediments, species, structure and biological integrity, water resources, freshwater ecosystems | Downstream |
| Non-GHG Air Pollutant Emissions | High | In addition to GHG emissions, the semiconductor manufacturing process produces various types of air pollutants, mainly volatile organic compounds (VOCs), acidic gases, and suspended particulate matter (mainly PM10 and finer particles). The level of environmental risk posed by these pollutants varies. Due to the diverse manufacturing processes used in the semiconductor industry, the emission sources and characteristics of different pollutants vary significantly. | Atmosphere, terrestrial topography, minerals, marine bathymetry, soil and sediments, species, structures and biological integrity, water resources | Downstream |
| Discharge of Toxic Pollutants into Water and Soil | Very High | Human activities release toxic pollutants that can directly harm organisms and the environment. Relevant cases include the discharge of toxic substances into receiving water bodies, such as heavy metals and various chemicals. | Atmosphere, terrestrial topography, minerals, marine bathymetry, soil and sediments, species, structures and biological integrity, water resources | Downstream |
| Utilization of Upstream Raw Materials | Very High | As the industry expands, demand for specific elements (including key raw materials) continues to grow. Currently, the global recycling rate for most critical elements derived from electronic waste remains extremely low (below 1%), leaving primary mining as the dominant source of supply. | Minerals, underwater minerals, and energy resources | Upstream |
Analyze Natural Risks and Opportunities (Assess)
Assessment Process (Screening Mechanism)
Based on TNFD guidance, RichWave integrates the nature-related dependencies and impacts identified during the "Evaluate" stage with its specific industry characteristics and operational footprint. By benchmarking these against peer-group materiality, the Company has executed a comprehensive risk and opportunity analysis (Assess).
Using the aforementioned screening mechanism, RichWave has identified three nature-related risks and opportunities highly relevant to the Company, comprising one physical risk (poor water quality resulting from water pollution) and two opportunities (ecosystem protection and land restoration, and the transition to renewable energy). The impact pathways, main business impacts, and response strategies adopted by RichWave for each risk and opportunity issue are described as follows:
Highly Relevant Natural Risks, Opportunities, and Response Strategies
| Nature-related dependencies and impacts | Risk and opportunity topic | Impact pathways of the Semiconductor Industry | Main business impacts | Response strategy |
|---|---|---|---|---|
| Water and Soil Pollution | Physical Risk Water pollution leading to poor water quality |
Climate change and human activities have led to the deterioration of environmental and water quality in the areas where the Company's business locations and downstream value chain manufacturers are located. This may indirectly affect their operational stability and the availability of natural resources, posing potential risks to the Company. | RichWave's operations are mainly office- and design-based, and the Company does not engage directly in manufacturing. However, the areas surrounding its business locations and its downstream foundries may emit toxic pollutants (such as heavy metals and chemicals) during the manufacturing process, which can contaminate surrounding water bodies and degrade water quality. Thereafter, additional water treatment measures may be required throughout the manufacturing stages of the value chain to comply with water use and discharge regulations, thereby increasing operating costs. | RichWave's water pollution-related risks mainly originate from manufacturing activities around its business locations and throughout its value chain. RichWave monitors water quality conditions in its surrounding environment and within the operating regions of key suppliers and foundries, while observing related regulatory developments to support enterprise-wide risk assessments and strategic decision- making. Meanwhile, RichWave has incorporated environmental management strategies into its supplier management and audit mechanisms. Evaluation metrics cover suppliers' environmental policies, environmental management systems, and the assessment and control of hazardous substance risks, encouraging suppliers to implement relevant environmental management measur |
| Land Remediation | Opportunity Ecosystem Protection and Land Remediatio |
By participating in ecosystem protection and land restoration initiatives, the Company can strengthen its environmental sustainability image, address stakeholder concerns regarding biodiversity and nature-related issues, and improve its overall performance in sustainability assessments, thereby generating positive brand equity and long-term operational benefits | By participating in afforestation and habitat restoration, RichWave has planted native tree species adapted to coastal environments, helping to improve soil stability, reduce the risk of windblown sand, and promote the recovery of local ecosystem functions. Related actions can also enhance carbon sequestration through natural means, positively impacting regional ecosystem resilience and biodiversity protection. | Since 2022, RichWave has partnered with the Tse-Xin Organic Agriculture Foundation (TOAF) to promote afforestation programs, focusing on habitat restoration in coastal areas while continuously monitoring tree growth and ecological benefits. The Company also supports habitat maintenance through the wildlife-friendly contract farming initiatives promoted by the Society of Wilderness. The Company supports ecosystem protection through tangible actions to promote biodiversity and nature conservation. Relevant outcomes are integrated into environmental management and sustainability disclosures, as the Company continues to enhance its nature-related governance. |
| Reduction of Non-GHG and GHG Air Pollutant | Opportunity Transition to Renewable Ener |
The combustion of traditional fossil fuels releases substantial volumes of suspended particulates, sulfides, nitrogen oxides, and GHGs, driving air pollution and elevated emissions. Consequently, implementing energy transition strategies to systematically elevate the share of renewable energy, while decoupling operations from fossil fuel dependency, mitigates energy-related environmental impacts and proactively addresses the requirements of climate change and nature- related transitions. | Promoting the use of renewable energy minimizes energy- related environmental risks, thereby strengthening the Company's sustainability performance, enhancing stakeholder trust in the Company's energy management and its ability to address nature-related issues, and supporting long-term corporate competitiveness. | RichWave systematically deploys renewable energy initiatives to increase its clean energy consumption, establishing a definitive adoption target for 2030. This integration serves as a cornerstone strategy to reduce operational carbon emissions and minimize energy-related environmental impacts, while directly responding stakeholder expectations for corporate energy and nature-related transitions. |
Management Strategy and Ecological Action Plan (Prepare)
The final stage of the LEAP methodology, "Prepare," consolidates the analysis results from the "Locate," "Evaluate," and "Assess" stages to further formulate management strategies and action plans. To address risks related to nature and biodiversity, RichWave has developed and implemented management strategies and ecological actions. Management strategies include biodiversity policies and supplier management, while ecological actions encompass habitat maintenance and afforestation. These efforts ensure that dependencies and impacts on nature are managed effectively, potential risks are reduced, and RichWave's commitment to nature and biodiversity is demonstrated.
Management Strategy
Biodiversity Policy
Facing global challenges such as intensifying climate change, biodiversity loss, and the gradual depletion of natural resources, RichWave recognizes that the natural environment and ecosystems are essential cornerstones of sustainable development. Consequently, we have established our first biodiversity policy this year and continue to integrate nature conservation and biodiversity into our corporate sustainability initiatives, serving as the guiding principles for promoting nature-related governance and action. Please refer to the Company's official website for the complete biodiversity policy.
Supplier Management
For key suppliers with sites identified as potentially ecologically sensitive, RichWave recommends strengthening environmental management practices related to biodiversity to mitigate potential impacts. RichWave will continue to monitor these suppliers to ensure that appropriate improvement measures have been implemented to address biodiversity impacts. Furthermore, as a fabless IC design company, RichWave’s direct operations are primary office-based, with the entirety of its manufacturing activities outsourced to downstream wafer foundries and OSAT partners. Consequently, the Company's nature-related risk management is extended to the supply chain level. RichWave has integrated natural resource management into its supplier questionnaires and conducts annual reviews. The evaluation assesses whether suppliers have identified natural environmental factors and their associated impacts, as well as whether they have implemented countermeasures to mitigate those impacts. We utilize supplier management mechanisms to provide timely reminders and management recommendations to suppliers. By integrating environmental management considerations into our supplier management processes and evaluation procedures, we aim to minimize the potential impact of nature-related risks throughout the value chain.
Ecological Actions
Habitat Management through Youluo Stream (Meilin) Farm Friendly Farming Habitat Maintenance
RichWave actively supports the Eco-Friendly Farming Contract Program promoted by The Society of Wilderness. In partnership with the society's Hsinchu Branch at the Youluo Stream Farm in Hengshan Township, Hsinchu County, the Company promotes natural farming practices, such as eliminating chemical pesticides and fertilizers, to enhance soil health, foster local ecosystem resilience, and restore biodiversity balance. This initiative also combines habitat conservation with environmental education to promote the sustainable concept of coexistence between land and ecology.
On November 15, 2025, six volunteers from RichWave participated in a friendly farming promotion event at Youluo Stream. Guided by conservation officers, they engaged in hands-on farming and habitat maintenance, including weeding, pruning, hauling, facility repairs, and the removal of invasive species to preserve the growth environment of native crops and maintain ecological stability. Through hands-on participation, the volunteer team also gained a better understanding of the importance of eco-friendly farming practices and healthy soil for biodiversity.
Afforestation to Protect the Coastline
RichWave is committed to ecological protection and biodiversity restoration. Since 2022, the Company has partnered with TOAF to promote the "Afforestation to Protect the Coastline" campaign. RichWave has participated in afforestation efforts along the western coast of Taiwan in the communities where it operates. These sites include Xinyue Beach (Xinyue Bay) in Zhubei City and Hongmaogang (Kengzikou area) in Xinfeng Township, both in Hsinchu County. Together, they are working to restore coastal windbreak forests 3 to enhance the resilience of coastal ecosystems. From 2023 to 2025, we collaborated with TOAF for three consecutive years to promote related initiatives, planting wind-resistant tree species suitable for coastal environments, such as Screwpine, Sea Hibiscus, Horsetail Tree, and Beach Cabbage along the coastline of Hsinchu County. The aforementioned tree species are wind-resistant, drought-tolerant, and capable of sand fixation. Their extensive root systems help stabilize the soil and reduce windblown sand, promoting the restoration of local coastal ecosystems and providing carbon sequestration benefits. To date, 460 windbreak saplings have been planted over four years, with an annual carbon sink benefit of approximately 3,322 kg. In 2025, RichWave contributed NT$50,000 and adopted 100 saplings, with an estimated carbon sink benefit of approximately 551 kg.
In recent years, the western coast of Taiwan has faced severe risks of shoreline retreat and coastal land loss. This degradation is driven by a critical combination of factors: rising sea levels induced by global warming, localized land subsidence from historical coastal groundwater over-extraction, and diminished sediment replenishment caused by reservoir trapping and river dredging. Furthermore, the degradation of coastal windbreaks has exacerbated the loss of vital sand sources. Afforestation and the restoration of windbreaks in coastal areas not only help stabilize soil and minimize the impact of storm surges and coastal erosion, but also promote habitat stability and effectively mitigate the effects of climate change to achieve environmental protection goals.
RichWave continues to monitor the growth of the saplings planted each year, as summarized below:
Note. 2022 marked the inaugural year of the coastal afforestation initiative, during which 200 saplings were successfully planted. The growth status and photos of these trees will be tracked and disclosed continuously in our annual reports.
Through the "Afforestation to Protect the Coastline" project, RichWave not only takes practical action to address coastal environmental risks brought about by climate change, but also encourages employees and the general public to focus on the protection of coastal ecosystems. Together, we are enhancing the resilience and sustainability of these ecosystems to create a more harmonious and stable natural environment for future generations.
RichWave continues to invest resources and collaborate with local partners to support biodiversity conservation initiatives, including eco-friendly farming, habitat preservation, and coastline protection. By doing so, the Company fulfills its commitment to green sustainability, respecting ecological balance and promoting coexistence with nature, while taking tangible actions to contribute to global sustainable development and biodiversity conservation goals.
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