Tokyo Electron’s CSRTokyo Electron’s Corporate Philosophy

We strive to contribute to the development of a
dream-inspiring society through our leading-edge
technologies and reliable service and support.
CSR Policy
The CSR operations of Tokyo Electron are initiatives that realize our Corporate Philosophy. We pursue sustainable
operations from the viewpoints of corporate governance, legal and regulatory compliance and business ethics while
creating new value through our products and services. Based on these efforts, we implement CSR activities to help
address social issues. We will continue to pursue CSR activities to build stakeholder trust, improve corporate value and,by doing so, promote the growth of a sustainable and dream-inspiring society.

Sustainable Operations
Material Issues

Through Business Activities

1
The United Nations
Global Compact (UNGC):An initiative proposed tocorporations by then UN
Secretary-General Kofi
Annan at the 1999 World
Economic Forum. We
signed onto the Compactin 2013.

Initiatives for Sustainable Development Goals (SDGs)

Contribution to
the Solution ofSocial Problems

Creation of New Value

Advancementof Dream-inspiring Society
Improvementof CorporateValue

Reinvest
Distribute toShareholders andEmployees
Pay TaxesThe SDGs are a universal set of goals to achieve by 2030, which wereunanimously adopted by the United Nations Sustainable Development
Summit in 2015. We conduct activities on a company-wide basis, and for each
CSR fiscal year and medium-term goal, and each material issue, we clarified
the SDGs it is working toward through business.
Additionally, starting in fiscal year 2021, we have been on a regular basis
holding SDGs workshops where employees working in a variety of fields cometogether and discuss various suggestions for contributing to the achievementof SDGs through business.

Tokyo Electron Supports the SDGs

Participation in Global Initiatives
We signed onto the United Nations Global Compact (UNGC1) and support its Ten Principles in the four areas of Human
Rights, Labour, Environment, and Anti-Corruption, to realize sound globalization and a sustainable society.
Additionally, as a corporate member of the Responsible Business Alliance (RBA2), we promote sustainability in our
supply chain by abiding by the RBA Code of Conduct comprised of five framework sections (Labor, Environment,Health and Safety, Ethics and Management Systems).
In addition, we have expressed our approval of the recommendations offered by the Task Force on Climate-related
Financial Disclosures (TCFD3) and are pursuing initiatives based on the framework of governance, strategy, riskmanagement, indicators and targets relating to the risks and opportunities that climate change presents to ourbusiness.

Distributionof Profit

CSR-oriented Operations

CSR Promotion Framework
We implement sustainability management, integrating it with our business strategy from a medium- to long-term
perspective of corporate value enhancement. Three groups have been established to promote CSR activities.
The CSR Management Council, the highest decision-making body regarding CSR, conducts discussions on the policy
for the entire company, and important projects. Based on this, the CSR Global Committee discusses CSR target setting
and progress management regarding activities for achieving CSR targets, along with promoting global projects, andshares best practices. At the CSR Monthly Meeting, information on CSR activities is shared with representatives fromeach division, and collaborative systems are built to tackle cross-division themes.
We are also working to further strengthen our CSR structure by appointing CSR managers at the company
headquarters as well as the Group companies in Japan and overseas companies to be in charge of understanding CSR
policy and goals and promoting activities.

Conference NameParticipants

CSR Management Council

CSR Global Committee

CSR Monthly Meeting

Chairman of the Board
Representative Director, President & CEO
Corporate Directors and Managers
Chief CSR Promotion Director
Heads of related departments
CSR managers of the Group companies in Japan andoverseas companies
Person in charge of CSR at each division

Function

Decide company-wide CSR policyDiscuss important matters

UN Global Compact

Responsible Business Alliance

Task Force on Climate-related Financial Disclosures

Evaluation from Third-Party Institutions
Our CSR activities have received high appraisals from evaluation organizations around the world. We have continued to be
selected as a constituent stock under leading global ESG investment indices, including the DJSI4 Asia Pacific Index,
FTSE4Good Index5 and MSCI World ESG Leaders Indexes6, and in 2021, we were also rated as a low-risk company in
Sustainalytics’ ESG Risk Ratings7.
8

Meeting FrequencyDJSI Asia Pacific 2020

FTSE4Good Index

MSCI World ESG Leaders Indexes

Sustainalytics’ ESG Risk Ratings

Twice annually

Financial Model in the Medium-Term Management Plan

Manage progress of activities for achieving CSR goals
Implement global projects
Share best practices
Share information on CSR activities
Discuss cross-division CSR initiatives

In addition to these groups, once a year we invite all employees to submit
examples of CSR in the workplace, toward issue resolution andadvancement of industry and society, and practice of our Corporate
Philosophy. Outstanding initiatives are awarded the CSR Promotion Awardby the Representative Director, President & CEO.

Twice annually

MonthlyIn addition to pursuing sustainable operations in line with its CSR policy, we are also striving for medium- to long-term
profits and ongoing corporate value enhancement by creating new value through business and helping in theresolution of issues and development of industry and society. In May 2019, against a backdrop of market growth forsemiconductor and flat panel display production equipment, we formulated the Medium-term Management Plan andset goals in the associated financial model of net sales of 2 trillion yen, an operating margin of 30% or higher and ROE9of at least 30% by March 2024. We have also set two goals for generating and returning appropriate profits toshareholders in the event of changes in the macro-economy or in the semiconductor supply-demand balance.
FY2021 Actual/Financial Model in the Medium-Term Management Plan
FY2021 (Actual)
Net Sales

Financial Model (By FY 2024)

1,399.1 billion yen

1,500 billion yen

1,700 billion yen

2,000 billion yen

Operating Margin

22.9%

26.5%

28.0%

>30.0%

ROE

26.5%>30.0%

2
RBA: An international
initiative promoting
supply chain
sustainability focused on
the electronics industry.
We have been a member
since 2015.
3
TCFD: Task Force on
Climate-related Financial
Disclosures. We haveexpressed approval of therecommendations since2020.
4
DJSI: Dow Jones
Sustainability Indices. An
ESG (environmental, socialand governance)
investment index. The Asia
Pacific covers companies
in that region.
5
FTSE4Good Index: Anindex related toenvironmental
performance andcorporate social
responsibility
6MSCI World ESG Leaders
Indexes: Companies thathave high ESG
performance are selectedfrom the MSCI Global
Sustainability Index, anESG investment index
developed by MSCI
7
Sustainalytics’ ESG Risk
Ratings: An ESG risk
assessment for
institutional investors by
Sustainalytics in theNetherlands. The rating isbased on a company’s
exposure to industryspecific material ESG risks
and how well those risks
are being managed.
Copyright ©2021
Sustainalytics. All rights
reserved. This article
contains information
developed by
Sustainalytics (www.
sustainalytics.com). Suchinformation and data areproprietary ofSustainalytics and/or its
third party suppliers (ThirdParty Data) and areprovided for informational
purposes only. They do notconstitute an endorsementof any product or project,
nor an investment advice
and are not warranted tobe complete, timely,
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available at https://www.
sustainalytics.com/
legal-disclaimers.
8Please check the link forthe logo’s disclaimer.
https://www.tel.com/csr/
review/
9
ROE: Return On Equity

CSR Promotion Award Certificate

7TOKYO ELECTRON SUSTAINABILITY REPORT 202 1TOKYO ELECTRON SUSTAINABILITY REPORT 202 18