SUMCO
SUMCO Corporation CSR Report2015

Message fromthe President

in the ever-changing business environment.
Information on specific activities conducted by the SUMCO

exchanges incorporated a version of the code as part of theirGroup to achieve the SUMCO Vision is disclosed to stakeholders

securities listing regulations and revised their associated listing

through our CSR Report and other sources. We will continue torules and systems. This version was known as Japan’s Corporate

strive for even more proactive disclosure of information on the

Governance Code [Final Proposal], as finalized by the Council ofGroup’s business activities with a view to deepening stakeholders’Experts Concerning the Corporate Governance Code. The Final

understanding of the efforts being made by the Group to increase

Proposal says that one of the objectives of the code is to seek

its corporate value and the systems adopted to support such

It is the mission of the SUMCO Group“growth-oriented governance.” This can be viewed in contrast toefforts. By doing so, we aspire to become a corporate group thatto be the world’s No.1 silicon wafer supplier

the protective approach that companies have thus far been

all of our stakeholders—including our customers, investors,

focused on of ensuring governance aimed merely at preventing

suppliers, employees, local governments, and local communities—

corporate

can get behind and support us.

by exceeding the expectation

scandalsthroughstrengthened

managementof our customers and stockholders,monitoring. Growth-oriented governance, on the other hand, isby recognizing the value of our employees

aimed at promoting timely and decisive decision-making by

As a company aspiring to contribute to society and maintaincompanies to increase their productivity and profitability so thatsustainable growth, the SUMCO Group works on the following issues.

they can achieve sustainable corporate growth and increase their

Corporate governance and compliancecorporate value.

Theand by being good neighbors in communities.
SUMCO Vision

SUMCO

Group

endeavorstomaintainefficiency,

Japan’s Corporate Governance Code recommends thattransparency, and fairness in its management by further enhancing

companies should not only explain how governance is maintained

its corporate governance. We also established and implemented

1. World’s Best in Technology

but also how their governance system helps enhance their

the SUMCO Charter as a code of conduct which officers and2. Deficit-Resistant Even during
Economic Downturns

corporate value. It is also recommended that companies

employees shall comply with, and we ensure that our corporate

proactively disclose information on their policies and plans toactivities are sound and in accordance with social norms, as wellincrease corporate value as well as on how associated decisions

as complying with laws and regulations.

3. Empower Employee Awarenessof Profit

are made and implemented. This also represents a break with the

Risk management

past, wherein many companies held the view that the main purpose

The SUMCO Group’s global market share is about 30%, meaningof information disclosure was to share the results of businessthat our silicon wafers are used in one in every three to four

activities, such as financial standing and operating performance.

electronic devices around the world. The stable supply of products

4. Competitiveness in Overseas Markets

Mayuki Hashimoto
President and CEO

SUMCO Corporation CSR Report 2015

growth-oriented governance facilitate our timely decision-making

Japan’s Corporate Governance Code came into effect on June 1,
2015. In the lead-up to its enactment, the country’s stock

Mission Statement

1

Further increasing our corporate value

The SUMCO Group has for many years been well aware of theis therefore our most critical management challenge and an

importance of growth-oriented governance and has been

important social responsibility. To ensure stable supply, we areproactively disclosing information on the Group’s policies and theirtaking various measures to prevent the materialization of risks while

progress. One of such efforts is the establishment of the SUMCO

working to further develop and improve our business continuity

Vision in 2013, which all our employees have been pulling together

plan, which also covers our supply chain.

to accomplish. The vision specifies four goals that we need toEnvironmental conservationachieve on our path to becoming an excellent company. In addition

The production of silicon wafers requires plenty of electricity, water,

to this, the New Medium-term Management Strategy wasand chemical substances. The SUMCO Group strives to reduce its

published in March 2015 to make clear the Group’s financial,use of each of these as well as the amount of industrial waste

business, and investment strategies.

generated by setting reduction targets for each item. We also

Semiconductors are evolving so rapidly that products become

ensure that harmful chemical substances and waste are handled

obsolete within only a few short years. To survive in this industry,

and managed properly to minimize the environmental risks of ourtherefore, we need to make decisions in a nimble and timely

business activities.

manner so that we can adapt to change. In order for us to meet

Working with stakeholders

changes in the business environment as efficiently and accurately

The SUMCO Group aspires to promote social development

as possible, we are continuously preparing various scenarios andthrough the supply of silicon wafers while endeavoring tomeasures across the SUMCO Group so that we have the flexibility

contribute to the well-being of the stakeholders who support us.

at all times to choose the best measure as needed according to

Toward this end, we actively communicate with stakeholders andthe situation. These and other approaches that we take forincorporate their opinions and requests into our activities.

2

Outline of
the SUMCO Group

Contents(As of May 25, 2015)

Message from the President
Editorial Policy
Outline of the SUMCO Group
Businesses of the SUMCO Group

Company Information

1
3
4
5

Editorial Policy
The objective of this report is to convey the SUMCO
Group’s stance on CSR and report its activities toTrade name

SUMCO Corporation

Japan

Head office

1-2-1 Shibaura, Minato-ku, Tokyo

SUMCO TECHXIV Corp.

SUMTEC Service Corp.

SUMCO Technology Corp.

SUMCO Insurance Service Corp.

SUMCO Service Corp.

Japan Formosa SUMCO Technology Corporation

Establishment

July 30, 1999

Main business

Manufacture and sales of siliconwafers for semiconductors

reference to the Global Reporting Initiative (GRI)

Capital138.718 billion yen

Overseas

Sustainability Reporting Guidelines 3.1. See page 34 forRepresentative

Mayuki Hashimoto,President & CEO

SUMCO Phoenix Corporation

PT. SUMCO Indonesia

SUMCO Southwest Corporation

SUMCO Singapore Pte. Ltd.

SUMCO Funding Corporation

SUMCO Korea Corporation

STX Finance America, Inc

SUMCO Taiwan Technology Corporation

SUMCO Personnel Services Corporation

SUMCO Shanghai Corporation

SUMCO Europe Sales Plc.

FORMOSA SUMCO TECHNOLOGY CORPORATION

stakeholders in order to enhance their understanding andearn their support. The report has been prepared in

CSR Management
SUMCO’s Stance on CSR

9Corporate Governance

10Compliance
Risk Management

11
11

Environmental Report
Environmental Managementcomparison with the GRI guidelines.

Group companies

Environmental Impact of Business Activities

15

Combating Global Warming

17

Data for periods outside the above are noted as such.

SUMCO Corporation and its Group companies.
“SUMCO” and “the Company” as used in this report

Offices
PlantsMajor subsidiaries

Offices

SUMCO Shanghai Corporation(quartz crucibles)(ingots, wafers)

Yonezawa(ingots)

FukuokaPublication

SUMCO Phoenix Corporation

Akita
JSQ Division(ingots)
Japan Formosa
SUMCO Technology
Corporation

scope are noted as such.

Technical support(wafers)

Imari

18

Plants

ChitoseNagasaki
SUMCO TECHXIV Corp.

cover SUMCO Corporation and its consolidated

Effective Use of Water Resources

20

Overseas Network(ingots, wafers)

subsidiaries. Other performance data outside the above

Environmental Impact (SUMCO Phoenix Corporation)

Network in Japanrefers to SUMCO Corporation. The Financial Highlights

18
19

7 companies in Japan;
12 companies abroad

January 2014 to December 2014

Reduction of Waste

Chemical Substance Management

SUMCO Support Corp.

Period Covered

Organizations Covered

13

Group Companies

Osaka

Saga

SUMCO
Europe Sales Plc.

Noda
SUMCO Technology
Corp.

(ingots, wafers)

Tokyo Head Office

PT. SUMCO Indonesia(wafers)(wafers)

SUMCO Taiwan Technology Corporation
FORMOSA SUMCOTECHNOLOGY CORPORATION(ingots, wafers)

Miyazaki
SUMCO TECHXIV Corp.

(planned publication of the next issue: October 2016)

SUMCO
Phoenix
Corporation

SUMCO Phoenix
Corporation(wafers)(ingots, wafers)

October 2015

SUMCO
Korea Corporation

SUMCO Singapore Pte. Ltd.

(ingots, wafers)

Social Activities Report
Interaction with Customers

21

Interaction with Suppliers

23Interaction with Shareholders and Investors
Interaction with Local Communities
Interaction with Employees

24
25
26

Note Regarding Forward-Looking Statements
Projections,

29

GRI Guidelines Comparison Charts

34

prospects,

and

other

are made by the Company based on the information

Net sales (consolidated)

Operating income/loss (consolidated)

Net income/loss (consolidated)(100 million yen)(100 million yen)(100 million yen)

4,000

available at the time of the release of the statements

3,000

and therefore are subject to risks and uncertainties.

2,000

Due to various factors, actual results may vary

1,000

significantly

Site Data

predictions,forward-looking statements contained in this report

Financial Highlights

fromresults

forward-looking statements.

anticipated

in

the

0

500

2,769

2,471

2,066

1,851

2,253

500

250

132
– 84

0

Jan. 2011

Jan. 2012

9

Jan. 2013 Dec. 2013 Dec. 2014 (FY)–250

Jan. 2011

Jan. 2012

34

0

7

162

–500

Jan. 2013 Dec. 2013 Dec. 2014 (FY)

–1,500

– 655

– 843

Jan. 2011 Jan. 2012 Jan. 2013 Dec. 2013 Dec. 2014 (FY)

Sales composition by region (year ended December 2014)(employees)

9,459

8,328

8,000

7,879

7,277

7,396

Europe, etc.

8.0%
Japan

6,000

26.4%

4,000

Asia

2,000
0

SUMCO Corporation CSR Report 2015

256

–1,000No. of employees (consolidated)
10,000

3

178

51.4%
Jan. 2011

Jan. 2012

Jan. 2013 Dec. 2013 Dec. 2014 (FY)

North America

14.2%

4

Businesses of
the SUMCO Group

What Is a Silicon Wafer?

SUMCO’s Aim Is to Become an Excellent
Company through the Integrated Effortsof All Officers and Employees

1

SUMCO is a manufacturer of silicon wafers, which are

Silicon is the second most abundant element on Earth, afterused as substrates for semiconductor devices. Electronic

oxygen. Because silicon combines with oxygen easily, it exists

equipments such as mobile phones, personal computers,in the form of silicon dioxide (silica) in nature. Silica is the main

digital home appliances, and control units for automobiles

constituent of soil, sand, and stone. High-purity silica that was

and industrial machines all incorporate semiconductor

mined is smelted and refined into polycrystalline silicon with adevices, and silicon wafers are essential material for

purity level of 99.999999999%, and wafers are produced frommanufacturing semiconductor devices.

this ultra-high-purity polycrystalline silicon.

Production Method of Silicon Wafers
The production of silicon wafers is divided into two processes: the monocrystalline silicon process and the wafer process. In theWorld’s Best in Technology

monocrystalline silicon process, polycrystalline silicon is melted to produce monocrystalline silicon ingots. In the wafer process, these
monocrystalline silicon ingots are sliced into wafers, which are then polished and cleaned to create a flat, mirror-like surface.

Flow of Silicon Wafer Manufacturing Processes to Electronic Products

Smelting
andRefining

SUMCO’s technologies and ability to ensure a stable supply of products are praised by our customers the world over. In fact, our outstanding
performance has been officially recognized by many semiconductor manufacturers with their excellent supplier awards. Using this recognition asa springboard to an even higher level of success, we will make greater efforts to promote cooperation with our customers based on long-term

Monocrystalline
Silicon Ingot
Manufacture

Polycrystalline
SiliconSilicaCircuitPattern
Lithography

Slicing

Monocrystalline
Silicon Ingot

Silicon Wafer

DicingSemiconductor
Chip

Patterned Wafer

Assembly

Packaging
Semiconductor
DeviceElectronic
Product

commitment and mutual trust, and to enhance our technological capabilities.

High Recognition by
Our Customers

Monocrystalline Silicon Ingot Manufacturing Processes

Wafer Processes
Monocrystalline
Silicon Block

We received the Supplier Continuous Quality
Improvement(SCQI)

Award

from

Intel

Corporation, the world’s largest semiconductor

Polycrystalline
Siliconmanufacturer, in March 2015. We have now

Melting

Seeding

Pulling

Slicing

Monocrystalline
Silicon Ingot

Lapping

Polishing

Wafer Washing

Polished Wafer

won this award for the 13th consecutive year
and 14 times in total. We also received the
Excellent Performance Award from Taiwan
Semiconductor

Manufacturing

Four Quality Requirements for Silicon Wafers

Company

Limited (TSMC), the world’s largest foundry, in
December 2014. This award was given to only

1

There are mainly four quality requirements for silicon wafers as described below. A silicon wafer is an agglomeration of various advanced

Photo: Dan Agulian and Chip Holley

technologies and its production requires extensive expertise. Sharing of information across the team and accumulation of techniquesnine companies out of more than 600 major

are therefore essential.

suppliers to TSMC, and SUMCO is the sole

Crystal Perfection

silicon wafer manufacturer among the winners.
We also received the Best Partner Award from

Flatnessbecoming

The number of minute particles adhering to the surface of silicon wafers

semiconductor devices are

increasingly miniaturized, silicon wafers areis required to be as close to zero as possible. To illustrate the concept,

largest semiconductor memory maker, for themade from monocrystalline

required to be extremely flat and smooth. To

if we enlarged a 300-mm wafer to the size of 300 meters (making it

second consecutive year in January 2015.

silicon.

of

illustrate the concept, if we enlarged a 300-mm

as big as the Tokyo Dome), the quality requirement is equivalent tosilicon atoms contained inwafer to the size of 300 meters (making it aspermitting a maximum of only 10 grains of sand, each with a diametera piece of 300-mm wafer

big as the Tokyo Dome), the quality requirementof 0.04 mm, across the entire area. Wafers used for image sensors of

can be as high as 3×1024.

is equivalent to permitting unevenness of only

digital cameras are required to be ultra-pure, at the level of no more

The word “monocrystalline,”

0.1 mm or less across the entire area.

than one part per trillion

SiliconSamsung Electronics Co., Ltd., the world’s

2
1 Supplier Continuous Quality Improvement (SCQI) Award from Intel3
300 mmwafersThe

usednumberforAs

semiconductor

circuitsof impurities.

meanwhile,means the state
Approx. 300 m
are arranged in an orderly,
crystalline structure, bothhorizontally and vertically.

Approx. 300 m

300 mmApprox. 300 m

Silicon wafer

Unevenness of
0.1 mm or less

300 mmSilicon wafer

SUMCO Corporation CSR Report 2015

arein which the silicon atoms

2 Excellent Performance Award from TSMC
3 Best Partner Award from Samsung Electronics

5

Cleanliness and Elimination of Contamination

Silicon wafer

6

2

4

Deficit-Resistant Even during
Economic Downturns

The Business Reorganization Plan initiated in 2012 was completed as planned in 2014. The sales break-even point
was lowered significantly, by approx. 30%, compared to the fiscal year ended January 31, 2012.

Sales break-even point (index)

Approx.

(index)
100

30% lower

80
60

Net sales/Operating income (loss)/
Net income (loss)
Net sales(consolidated)

Operating income/loss (consolidated)
Net income/loss (consolidated)(100 million yen)
3,000(100 million yen)
1,500

Company

Headquarters

Sales ofsemiconductors

Intel

U.S.A.

51.3

Samsung

S. Korea

37.2

500

3

TSMC

Taiwan25.0

04MicronU.S.A.

16.6

5

SK Hynix

S. Korea

15.8

6

TI

U.S.A.

12.1

0

Jan.
2011

Jan.
2012

Jan.
2013

Dec.
2013

Europe, etc.

North America

Asia(billions of dollars)

1

1,000

–1,000

Japan

(%)
100

Dec.
2014

7

Toshiba

Japan

11.2

8

ST

Europe7.3

9Renesas

Japan

7.3

10

Infineon

Europe

6.1

Source: Prepared by SUMCO based on data from IC Insights(excluding fabless companies)* The sales figures are provisional.

80

60

40

20

0

4Q
3Q
2Q
1Q
4Q
3Q
2Q
1Q
4Q
3Q
2Q
1Q
4Q
3Q
2Q
1Q
4Q
3Q
2Q
1Q
4Q
3Q
2Q
1Q

3

Overseas sales ratio

2

–500

Dec. 2014

SUMCO Group.

1,000

20

Dec. 2013

world. All of the global top 10 companies in semiconductor sales are customers of the

2,000

0

Jan. 2013

The SUMCO Group supplies silicon wafers to semiconductor manufacturers around the

Global top 10 companies insemiconductor sales (2014)

40

Jan. 2012

Competitiveness inOverseas Markets

2009

2010

2011

2012

2013

2014 (FY)

Empower Employee
Awareness of Profit

Rather than the president or executives, it is the employees who

motivated and committed to the vision. However, even when all

are the actual driving force of a company. The SUMCO Group isemployees of the Group share the vision, have high profit andno exception to this: SUMCO Vision of becoming the “World’s

cost awareness, and work to identify and solve issues, such

Best in Technology” and “Deficit-Resistant Even during Economic

status cannot be maintained unless senior management is willing

Downturns” cannot be realized unless all employees are highly

to share information with the employees. For this reason, the4

President and Executive Vice President visit each plant frequently
to hold a management briefing in order to share issues facing theGroup in the current business environment.
We also evaluate employees’ efforts appropriately toincrease their motivation. The President’s Award was established1

in 2013 to recognize individuals and organizations that make2

outstanding achievements toward enhancing the Company’s

5value every year. Up-and-coming engineers and innovative Total
Productive Maintenance (TPM) teams are also given opportunities
to present their accomplishments and receive awards every year.
The SUMCO Group has plants in the United States, Taiwan,

7

and Indonesia and a network of sales offices around the world.

1 2 3 Management briefing

7

SUMCO Corporation CSR Report 2015

4 TPM presentation teams
5 SUMCO Phoenix Corporation employees

Aiming for further growth as a global company, we actively recruit

3

employees with outstanding talent regardless of nationality.

6 PT. SUMCO Indonesia employees
6

7 TPM presentation at FORMOSA SUMCO TECHNOLOGY CORPORATION

8

Corporate Governance

Based on its aim of playing a leading role in the development

are the foundation of CSR, and companies need to have

Basic Stanceof Directors from the executive officers’ function of executingof industry and the improvement of living standards througheffective corporate governance to fulfill them. For this reason,

Meeting the expectations of shareholders through enhancing

decisions made by the Board. This system enhances thethe supply of silicon wafers, an essential substrate material for

SUMCO regards corporate governance and corporate ethics as

our corporate value and developing and maintaining a favorable

Company’s ability to adapt to changes in the businesssemiconductor devices, SUMCO aspires to serve society as

fundamental management issues.

relationship with other stakeholders is an important management

environment and expedites the decision-making process.

Secondly, on top of this foundation, companies also needissue for us. Based on this understanding, we implement various(4) For each business operating organization, authority is clearly

to proactively conduct social contribution activities outside

corporate governance measures as explained below to ensure

defined, a supervisor is appointed, and proper administrative

their business domains. These activities include environmental

prompt decision-making and effective business execution. We

procedures are established in accordance with internal rules

maintenance, educational and cultural initiatives, and support foralso work to enhance the transparency of our management byFirstly, companies have an obligation to ensure compliance,

employees’ volunteer activities. In this regard, SUMCO actively

assuring timely and appropriate information disclosure.

safety, and environmental sustainability as corporate citizens,

engages in local beautification projects and educational andand are responsible for maintaining and improving the quality ofcultural activities with the aim of becoming a good partner for

Corporate Governance Structure

their products and services and returning profits to society as

local communities.

(as of March 25, 2015)

Group companies in accordance with the auditing standards(1) The Board of Directors, made up of nine directors (of whomand audit plan formulated by the Board of Corporate Auditors.

three are external), is responsible for making decisions on

They also attend the Board of Directors meetings and otherimportant matters, such as those legally required to beimportant meetings and inspect the business and financial

determined by the Board, and important issues regarding

conditions to supervise and audit the execution of duties bybusiness execution. It is also responsible for supervising thedirectors. The three external auditors have expert knowledge

execution of duties by directors and executive officers. The

on laws and accounting and keen insight into company

external directors, who are familiar with SUMCO’s business

management and help strengthen the supervisory function ofspectrum of CSR activities.
We believe that companies are expected to meet theircorporate social responsibilities from two perspectives.

part of their business activities. This obligation and responsibility

Relationships with Stakeholders

SUMCO endeavors to fulfill its responsibilities to stakeholders, who support its business activities.

and under the leadership of the executive officer in charge.
(5) The Board of Corporate Auditors consists of five auditors:
two full-time corporate auditors and three external auditors.
They conduct audits of each department of SUMCO and its

and have keen insight into company management, bring

Our Main Responsibilities to Stakeholders

Customers(6) Internal audits are conducted by the Internal Auditing

the supervisory function of the Board. The Board of Directors

Department (seven staff members) to check the efficiency ofCustomers

generally meets every month and holds special meetings

management and compliance with laws in accordance with the● Enhance customer satisfaction

whenever necessary.

internal auditing rules and annual audit plan. The audit results

services)

Shareholders

Suppliers

Shareholders● Return profits (dividends, etc.)● Enhance corporate value

Suppliers● Develop a solid and sustainable supply chain(2) The Management Conference, consisting of all executives atare reported to the President and the audited departments, andthe level of managing executive officer and above, deliberates

the departments are requested to take corrective measures

important management issues. The committee basicallyas necessary, with the progress followed up on. The Board ofmeets every week.

Corporate Auditors and the Internal Auditing Department meet(3) SUMCO has adopted the executive officer system to separate

General Meeting of Shareholders
Appointment/Dismissal● Return profits (bonuses, etc.)● Support the improvement of local environments● Support local educational and cultural activities

9

SUMCO Corporation CSR Report 2015

(decision-making and supervision)

childcare/nursing care leave)● Create employment, Pay taxes

Appointment/Dismissal

Board of Directors (Directors)● Build a favorable work environment (mental health,

Local communities

opinions for close collaboration and efficient auditing.

Corporate Governance Structure● Offer secure employment

Employees

regularly to share audit results and information and exchange

the decision-making and supervisory function of the Board

Employees

Local
communities

the Board of Corporate Auditors.

outside perspectives and play an effective role in strengthening(Maintain and improve the quality of products andSite Dataa good corporate citizen. As such, SUMCO undertakes a wide

Social Activities
ReportSUMCO’s Stance on CSR

Environmental
ReportCSRManagement

CSR
Management

Appointment/Dismissal

SUMCO
Charter ofCorporate
Conduct

Business Security
Committee
Risk assessment
Prevention of risks
from materializing
Measures takenin the event of a riskmaterializing

Board of Corporate Auditors(Corporate Auditors)

Appointment/
Dismissal

Management Conference(deliberation of important matters)

Staff for Corporate Auditors

Executive Officers(overall business execution)

Internal organizations

Internal Auditing Department(internal audits)

Accounting Auditor(accounting audit)(daily business execution)

Subsidiaries

10organizations; and outsourcing.

against risk occurrence); and (2) minimize damage in the event of

was conducted at SUMCO TECHXIV Corporation’s Miyazaki Plant

risk materialization (response measures to minimize damage).

in a preparation for a Nankai Trough earthquake.

Export Control

Our basic policy in promoting risk countermeasures is as follows:

Emergency Response Exercise

To ensure export control compliance aimed at maintaining

a. Prioritize risks by likelihood of occurrence and severity of impact

SUMCO believes that to expand its business and achieve soundinternational peace and security, SUMCO established andto ensure optimum allocation of management resources andEvery year, the SUMCO Group assesses and identifies potential

growth, executives and employees need to comply with both laws

implemented its Security Export Control Rules. The Company

maximize effectiveness of measures.

risks that may occur in conjunction with an earthquake,and their underlying spirit as well as adhering to ethical and otherscreens customers and transactions under the Rules, and withb. Minimize damage and loss by preventing the suspension or

typhoon, explosion, fire, chemical spill, or other emergency andsocial norms in order for the Company to be accepted by theregard to export of goods or provision of technology to non-discontinuation of business activities to ensure business continuity

plans and conducts exercises for risks identified as serious by

global community.

residents, it checks whether the due process under the Rules arein the case of an accident or other emergency situation.

providing training to related personnel and in accordance

Positioned above the Company’s various rules andcompliance programs, the SUMCO Charter of Corporate Conduct

followed before commencing the export or technology provision.

Business Security Committee (BSC)with manuals. After each exercise, we identify problems andreview procedures for continuous improvement to make ourdefines how executives and employees should act so as to enable

Renouncing Relationships with
Antisocial Forces

the Business Security Committee (BSC) is responsible, among

We also conduct joint emergency response exercises

the Company to fulfill its social responsibilities and achieve further

SUMCO Charter declares that the Company denounces any kindother things, for formulating the Company’s risk managementwith chemical suppliers to ensure that we can safely andgrowth. We appoint a Chief Compliance Officer to serve as theof relationship with antisocial forces and rejects any requests orpolicies and assessing the progress of risk management.

smoothly handle a chemical spill discovered after delivery tocompany-wide supervisor and monitor the Company’s compliancedemands from such forces. It is ensured through education andWith regard to specific risks, such as those involving

with the charter. Meanwhile, a supervisor in each department

training that all executives and employees of the Company are

information leakage, the financial market, and product quality,

In 2014, in addition to the above-mentioned exercises, a drill

regularly reports to the Chief Compliance Officer on how well theconstantly reminded of the importance of this policy.

appropriate controls are established under dedicated internal rules.

to respond to large typhoons was also conducted to protect ourcharter is observed within his or her department. Each Group
company also maintains its own code of conduct, which is similar

Activities on Intellectual Property

to the charter, to establish a framework for corporate ethics andAs its basic policy, the SUMCO Group attaches importance to thedevelop a compliance structure.

protection of intellectual property and utilizes it as a strategic toolInternal Hotline

intellectual property rights of third parties.
Under this policy, we have established internal rules to define

September 2010, we also established an appointed outside lawyer

how we obtain, maintain, and utilize intellectual property rights;

to whom an internal report is to made. We ensure that all Company

prevent infringements; and provide training to employees. The

employees know how to use the hotline and contact the lawyer by,Intellectual Property Division actively conducts various intellectual

Fair Business Activities
Under SUMCO’s Rules on Handling Grant of Benefits the following

seeking return or receiving favors, in connection with duties of civil

typhoon No. 8 (Neoguri) hit
1 Structure

Japan one month after theBusiness Security Committee (BSC)
Chair:
President
Members: Directors; executive officers in charge of a Division;
officers in charge of factories and plants; officers incharge of controlling Group companies
Secretariat: General Affairs Division

exercise, all plants were able
to respond appropriately.

Exercise to protect plants against
damage from storms and floods

Comprehensive Disaster-Preparedness Drill
The SUMCO Group conducts a comprehensive drill, nighttime/
non-workday drill, and a non-comprehensive drill (firefighting/

Departments

Obtained intellectual property rights are reviewed periodically toGroup companies
in Japan

Overseas Group
companies

reporting/evacuation) every year. As part of the comprehensive
drill, in addition to joint training with the fire station, there is also

eliminate obsolete intellectual property so as to keep costs at a

2 Objectives

training for first-aid firefighting, the use of fire hydrants by therational level.

The BSC undertakes the following risk management activities.

Company’s firefighting team, and operation of the Company’s own

Risk Management

a. Discuss and decide on company-wide risk management policies.
b. Discuss and decide on risk prevention measures.
c. Discuss how to respond to new risk events.
d. Share information on risk management.
e. Promote risk management awareness across the Company.
f. Assess and follow up on the progress of risk management.

in violation of the Political Funds Control Act and/or the Publicin the form of excessive entertainment or gifts, with the aim of

one of our sites.

storms and floods. When

BSC’s Structure and Objectives

property operations in cooperation with other departments.

is prohibited: (1) to make contributions and donations to politicians
Offices Election Act of Japan; (2) to offer favorable benefits

response as quick and apposite as possible.

plants against damage fromfor the Group’s business while at the same time respecting the

An internal reporting hotline has been in place since 2006. In

among other means, distributing explanatory compliance cards.

Established to oversee SUMCO’s risk management as a whole,

Site Datais the supreme set of principles guiding our conduct at work. It

CSR
Management

In fiscal 2014, an earthquake response simulation exercise

Environmental
ReportSUMCO Charter of Corporate Conduct(1) predict risks and prevent their occurrence (preventive measures

Social Activities
ReportComplianceor other publications; payment of membership dues to externalfire engine.
For the nighttime/non-workday drill, we identify andaddress problems that cannot be discovered on workdays or
during the day.

servants; (3) to deal with antisocial forces or groups; (4) to givefinancial benefits concerning the exercise of rights of shareholders;

SUMCO has established its Risk Management Basic Rules which(5) to offer excessive entertainment or gifts, beyond the extent

set forth fundamental matters concerning risk management.

Ensuring Business Continuity

permitted by social ethical standards; and (6) to provide any type

An information communication route to be used in the event of

Our Risk Management Basic Rules define business continuity asof illegal benefit or favors or engage in transactions which could

materialization of a risk as well as procedures to respond to aan important management issue and we have been developing

be recognized as unfair or unjust under social ethical standards.

disaster, including the setting up of emergency headquarters haveand improving our businessWe have also set specific criteria for the activities listed below andbeen done in accordance with the rule.

continuity plan accordingly.

permit these activities to be undertaken only when the criteria

Disaster reporting exercise

The BSC, explained above,

are met and proper approval is given. The activities are: making

Risk Management Basic Policies

formulates

improvement

donations; providing sponsorship; payment of entertainment

To ensure the protection of all resources necessary for theplansmonitors

expenses/giving celebratory or condolence gifts; purchasing

continuation of business activities, including personnel, property,

reports on the progress ofadvertising; subscribing to or purchasing newspapers, magazines,

funds, and public trust, SUMCO regularly promotes measures to:

improvement.

11 SUMCO Corporation CSR Report 2015

Disaster relief exercise

and

and
Earthquake response simulation exercise

12

Environmental Management
Environmental Objectives and Targets
We set environmental objectives and targets for three-year periods and work to achieve the final-year targets (= environmental objectives) ofeach period. The base year for the targets for 2012 to 2014 is 2011. The performance is checked semiannually and the targets are reviewed
as necessary.

As a manufacturer of high-quality silicon wafers for semiconductors, SUMCO has established the following action guidelines and iscommitted to self-initiated and sustained environmental conservation activities to pass on the Earth’s irreplaceable environment tofuture generations.

2. Environmental Action Guidelines
Through our business activities, we shall pursue activities with an emphasis on the following points.
(1) We shall act to conserve electricity and other forms of energies consumed by our business activities, thereby curbing emissions ofgreenhouse gases.
(2) We shall strive to reduce waste and increase the recycling and reuse rates.
(3) We shall strive to reduce chemical substances used in our business activities.
(4) We shall thoroughly manage harmful chemical substances and waste, thereby reducing the risks to the environment.

We shall abide by environment-related laws and regulations, bylaws, and other agreed requirements.
	We shall strive to prevent environmental pollution in our entire business activities and undertake efforts to protect the
global environment and coexist in harmony with local communities.

(based on per-unit production)

Action items in business activities

2014 environmental objectives(midterm targets)

Reduction of power consumption(reduction of CO2 emissions)Base year

Reduce by 5.8%

2014 targets

2014 results

Reduce by 5.8%

Reduce by 8.8%

Reduction of chemical substance use

Reduce by 9.1%

Reduce by 9.1%

Reduce by 14.4%

Reduction of industrial waste

Reduce by 15.0%

Reduce by 15.0%

Reduce by 19.3%

Reduction of water consumption

Reduce by 6.0%

Reduce by 6.0%

Reduce by 16.5%

Environmental objectives(set each year)

2014 target

2014 attainment rate

Attainment rate: 80%

Attainment rate: 80%

93.8%

Beneficial activities
Improvement and increased efficiency ofthe primary business of each division

2011

Social Activities
Report1. Basic Environmental Philosophy

Site Data

SUMCO Corporation’s Environmental Policies

Environmental
ReportCSRManagement

Environmental
Report	We shall define environmental objectives and targets, and by periodically reviewing these objectives and targets,shall promote continuous improvement of our environmental management system.
We shall make these policies known to all employees within SUMCO and disclose information internally and externally.
July 1, 2015
Mayuki Hashimoto, President & CEO

Environmental Education
Education Targeted at Suppliers to Prevent
Environmental Accidents
Environmental education is provided to suppliers of chemicals andEnvironmental Management Structureother products and to industrial waste treatment firms to ensure

The general affairs management representative and the environmental managers at sites report to top management and act in accordance withthe prevention of environmental accidents and compliance with

their respective roles, responsibilities, and authority. Information and instructions are communicated and shared at meetings of the Environmental

laws and regulations.

Management Committee and Environmental Management Committee at each site.
Environmental Management Structure

Contents of education

Top management

	Request for vehicle inspection to prevent the leakage offuel, oil, etc.

General affairs
management representative

Environmental Management
Committee

Company-wide secretariat

Company-wide internal
environmental auditors

EMS Personnel Conference
Environmental manager at site

Suppliers receiving environmental education on the prevention ofenvironmental accidents	Importance of SUMCO personnel being present at
the time of delivery/collection and request that theirinstructions be followed	
Request for inspection of industrial waste collection
vehicles, particularly to prevent leakage or dripping ofsludge, liquid waste, etc.
	
Report of previous environmental accidents that
occurred at the Company

Environmental management
representative

Environmental Management
Committee at site

Environmental manager

Expert Committee

Internal environmental
auditor at site

Secretariat at site

Statutory administrator

Environmental promoter at worksite
Employees* At SUMCO TECHXIV Corporation, each of the Nagasaki Plant and the Miyazaki Plant has their own environmental management structure.

13 SUMCO Corporation CSR Report 2015

14

CSR
Management
In a voluntary survey implemented at the Noda Office in 2005, it
was found that amounts of volatile organic compounds (VOC) and

INPUT
EnergyProduct
development

Electricity ................ 1,307,002 MWh(crude oil equivalent) ..... 329,365 KL
Fuel (crude oil equivalent) ... 7,054 KLInternal Environmental Audit

fluorine exceeded the soil and groundwater environmental standard

Internal environmental audits are implemented every year

values. We have ever since been introducing countermeasures infor all organizations subject to the Company’s environmental

consultation with concerned authorities and others. At present, wemanagement system. The results are reported to top management

are working to prevent the spread of and recover contaminated

Water

and reflected in the following year’s activities for continuous

substances by using a pumping well set up near the boundary of

improvement of the environmental management system.

the plant grounds.

Industrial water ......... 10,240,223 m3
Tap water ....................... 165,412 m3
Groundwater .............. 3,214,177 m3

Audits of randomly sampled Company sites are implemented
every year and a renewal audit is conducted for all sites every three
years by an external independent auditor.

Compliance with Environmental
Legislation
The SUMCO Group ensures that Group companies keep
themselves updated about the requirements of laws, regulations,and agreements and that they comply with such requirements.
In 2014, an audit was conducted by an external consultant
to verify the Group’s compliance with environmental legislation.
We also ensure that the Group complies with overseas

Fluorine
Trichloroethene(kg)● Safe raw materials

Discharged wastewater● Use of recycled materials

Ocean ........................ 5,172,547 m3
Rivers ......................... 3,250,489 m3
Sewerage ................... 3,415,356 m3● Energy conservation● Reduced use of chemical

substances● Reduced water consumption

Waste● Compliance with laws andregulations

PRTR-regulated substances
Amount of Contaminated Substances Recovered Annually from
Groundwater at the Noda Office

CO2 emissions.................................... 820,683 t-CO2
Breakdown: Electricity .... 799,722 t-CO2
Fuel .............. 20,961 t-CO2
CO2 emissions from transport ... 4,773 t-CO2● Environmental assessment● Green procurement

Procurement

Production

Environmental Management System Audit

OUTPUT

Business activities

Ordinary business waste .......... 202 t
Industrial waste .................... 19,846 tSpecially controlled industrial waste ... 2,946 t● Reduced emissions ofpollutants

Amount handled ................... 857.4 t● Reduced amount of waste

Tetrachloroethylene
Cis-1, 2-Dichloroethylene

Transport

Environmental
Reportsystem audits, meanwhile, are implemented by an external auditor.

Environmental Impact of Business Activities in 2014 (SUMCO Group in Japan)

Social Activities
Reportinternal environmental auditors. Environmental management

Progress of Countermeasures against
Soil and Groundwater Contamination
at the Noda Office

At SUMCO, internal environmental audits are conducted bySite Data

Environmental Audits

PRTR-regulated substances● Improved transport system

Amount released ...................... 6.6 t
Amount transferred .............. 262.2 t● Use of reusable containers● Reuse of materials

700* CO2 emissions from electricity are calculatedusing the CO2 emission coefficient of eachelectric power supplier.

600
500

Trends of Environmental Impact

400

CO2 emissions (overseas) (thousand tons per year)

300

Japan

200

Overseas

100
0

2006

2007

2008

2009

2010

2011

2012

2013 2014 (year)

CO2 emissions (Japan) (thousand tons per year)
SUMCO

STC

750

750

Registration, Evaluation, Authorisation and Restriction of Chemical

500

500

Substances (REACH).

250

250

0

0

chemical substance regulations, namely, the Restriction on
Hazardous Substances (RoHS) Directive and the Regulation on

Environmental Impact of Business Activities

2012

2013

2014 (year)

FST

SPX

200

200

200

100

100

100

0

2012

2013

2012 2013 2014 (year)

SUMCO

5
0

2013

2014 (year)

0

2012 2013 2014 (year)

SPX(U.S.A.)

15

Water consumption (overseas) (million m3 per year)

10

SPTI

FST

SPX

5.0

5.0

5.0

2.5

2.5

2.5

5

2012

2012 2013 2014 (year)

SPTI(Indonesia)

STC

15

0

FST
(Taiwan)2014 (year)

Water consumption (Japan) (million m3 per year)10

The depletion of energy resources, global warming, threats to biodiversity, and other environmental problems are having an increasingly serious

SPTI

0

2012

2013

2014 (year)

impact on the global environment. SUMCO promotes environmental considerations and the reduction of environmental impacts across its
business activities with a particular focus on electric power, chemical substances, waste, and wastewater, which the Company has identified

02012 2013 2014 (year)

0

2012 2013 2014 (year)

0

2012 2013 2014 (year)

as priority environmental issues.
* STC = SUMCO TECHXIV Corporation, SPTI = PT. SUMCO Indonesia, FST = Formosa SUMCO Technology Corporation, SPX = SUMCO Phoenix Corporation* CO2 emissions of the overseas subsidiaries are calculated using the emission coefficient of each country based on the Greenhouse Gas Protocol Initiative.

15 SUMCO Corporation CSR Report 2015

16

The production of silicon wafers requires a significant amount of

CO2 Emissions per Silicon Wafer Manufactured in JapanTo reduce the large volume of sludge generated at our plants,

electricity. To reduce power consumption, we strive to improve

Silicon Wafer of 300 mm in diameter
Silicon Wafer of 200 mm or less in diameter

efforts are currently being made to optimize the quantity ofwithenergy-saving

andhigh-efficiency

alternatives(kg-CO2/wafer)
40

when

30

refurbishments are due.

0

to save energy and reduce CO2 emissions.

per a piece of silicon wafer decreased thanks to the rationalizationand enhanced efficiency of production.

900

825

operation. As for waste oil, waste acid, waste alkali, waste

21.4

plastics, and other waste, we are promoting both their recycling
and their conversion into valuable resources.

2012

2013

2014

Silicon Wafer of 300 mm in diameter
Silicon Wafer of 200 mm or less in diameter(kg-CO2/wafer)

1,044

37.3
35.1

0

26,91822,64020,00020,212
15,277

10,000018,454

6,730

6,891

6,107

5,067

4,540

2010

2011

2012

2013

2014

(year)

silicon wafers with reusable alternatives to reduce post-delivery
waste. The percentage of reusable containers used for shipment

36.2

32.9

in 2014 was 61.4% (56.7% in 2013). We conduct tests on the

31.4

29.9

reusable containers to ensure that the quality of products will not
be affected.

20

773

30,000

Amount of waste generated
Amount of final disposal(year)We are replacing the containers used to ship 300 mm in diameter

30

CSR
Management
40,000CO2 Emissions per Silicon Wafer Manufactured Overseas(thousand tons)

982

(t)

lessen the moisture content of sludge by improving dehydrator

Waste Reduction through the Adoption of
Reusable Containers

CO2 Emissions (SUMCO Group)

933

24.6

chemicals injected for wastewater treatment as well as to* CO2 emissions per wafer increased in 2013 because the CO2 conversion factor(t-CO2/kwh) increased due to the higher ratio of thermal power generation.

40

1,200

29

20

breaks, and air conditioners are set at a reasonable temperature

increased due to increased production volume, but CO2 emissions

30.5

20.4

In offices, lighting is turned off during lunchtime and otherIn 2014, both CO2 emissions and electric power consumption

35.5

Site Datathe yield of products and replace production and utility facilities

Amount of Waste Generated and Final Disposal(SUMCO Group [Japan])

Environmental
ReportReduction of Waste

Social Activities
ReportCombating Global Warming

2012

2013

2014

(year)

600
300
0

2010

2011

2012

2013

2014

(year)

Electric Power Consumption (SUMCO Group)
1,867

SUMCO used to rely solely on airfreight for the transportationof silicon wafers to overseas markets. However, to reduce both

(GWh)
2,000

CO2 Reduction through Modal Shift to Ship Transport
in the Field of Logistics

CO2 emissions and transport costs, we have been promoting a
1,725

1,667

1,569

Effective Use of Water Resources

modal shift to ship transport for some of our products since 2009.

1,676

Since ship transport requires longer transportation lead time and

1,500
1,000
500

involves changes in the transportation environment, we conduct

Industrial water and groundwater are purified through filtering

tests before switching to ship transport to confirm that the quality

and ion exchange for use at our plants. Since we have to use

of products is not affected, as well as consulting with customers.

a significant amount of water, a valuable resource, we ensurethat water left after the purification process is used to cool utility

0

2010

2011

2012

2013

2014

(year)

CO2 Reduction through Modal Shift to Ship Transportfacilities and dilute wastewater treatment chemicals, rather than(t-CO2)discharged. We also collect water used to rinse silicon wafers

1,200

and for other purposes to conserve as much water as possible
1,004

900

600

1,007

930

for recycling.

Amount of Water Supplied and Discharged(SUMCO Group [Japan])Amount of water supplied
Amount of water discharged(thousand m3)
16,00015,821

12,000 13,688

14,153

14,12911,997

12,2792011

2012

13,395

13,62011,616

11,838

2013

2014

8,000
4,000

771
580

0

2010

(year)

300

017 SUMCO Corporation CSR Report 2015

2010

2011

2012

2013

2014

(year)

18

Environmental Impact (SUMCO Phoenix Corporation)

CSRManagement

Chemical Substance Management

The following is a report on the environmental activities of SUMCO Phoenix Corporation, our subsidiary in the United States,

Environmental
Reportwhich has plants in Phoenix, Arizona and Albuquerque, New Mexico.

ResultsReported in 2014
Chemical Substances in the Environment and Promotion of
Improvements to the Management Thereof (Law concerning(t)

Pollutant Release and Transfer Register/PRTR Law) requires

1,200

businesses to report the amounts of any designated chemical

Transfer amountRelease amount

Energy Conservation
Due to various ongoing activities to reduce energy used for
operating the plants, the subsidiary maintained the same level ofenergy consumption as in 2013.

In fiscal 2014, there were 13 substances subject to reporting

600

under the PRTR Law. Substances contained in cleaning agents

357.3

300

and fuels make up the majority of these.

0

2010

407.9
273.9

2011

2012

306.3

2013

268.8

2014

* The figure for each fiscal
year shows the amount of
released or transferred
substances during thepreceding fiscal year from
April through March.

Main
improvements

900

substances released into the environment or transferred.

Electric power consumption
(GWh)
250
200
150

l The use of inverter-equipped motors continued to be

expanded.
l The use of energy-saving lighting continued to be

expanded.
l The operational efficiency was maximized.

100
50
0

2011

2012

2013

2014

(year)

2011

2012

2013

2014

(year)

2010

Social Activities
ReportAmount of PRTR-Regulated Substances Released and Transferred(SUMCO Group [Japan])(FY)

Site Data

The Act on Confirmation, etc. of Release Amounts of Specific

Reduction of Water Consumption

Ordinance
No.

20

Name of Class 1 Designated Chemical SubstanceAmounthandled

7.4

2-aminoethanol(t)Amount transferred

Atmosphere

PublicwatersSoil

Landfill

Sewerage

0.0

0.1

0.0

0.0

0.0

Waste

0.0

30

Linear alkylbenzene sulfonate (LAS)

2.0

0.0

0.0

0.0

0.0

0.0

0.0

53

Ethylbenzene

0.0

0.0

0.0

0.0

0.0

0.0

0.0

71

Ferric chloride

9.0

0.0

0.0

0.0

0.0

0.0

0.0

80

Xylene

87.3

2.7

0.0

0.0

0.0

0.0

0.5

Hexavalent chromium compound

1.5

0.0

0.0

0.0

0.0

0.0

1.3

88
296

1,2,4-Trimethylbenzene

300

Toluene

101.4

0.1

0.0

0.0

0.0

0.0

0.0

4.8

3.3

0.0

0.0

0.0

0.0

1.5

332

Inorganic arsenic and its compounds

0.7

0.0

0.0

0.0

0.0

0.0

0.0

333

Hydrazine

1.1

0.0

0.0

0.0

0.0

0.0

0.0

374

Hydrogen fluoride and its water-soluble salts

592.6

0.3

0.0

0.0

0.0

0.0

222.6

407

Poly (oxyethylene) alkyl ether

17.7

0.0

0.0

0.0

0.0

0.0

4.4

410

Poly (oxyethylene) nonylphenyl ether

32.0

0.0

0.0

0.0

0.0

0.0

32.0

Total

857.4

6.5

0.1

0.0

0.0

0.0

262.2

* The amount handled is not equal to the total amount of released and transferred because some substances were released after decomposition and detoxification.

19 SUMCO Corporation CSR Report 2015

Main
improvements

Amount releasedl Water used for rinsing and other purposes in the

production process is reused to reduce the amount of
tap water used.
l The production process was improved in such a way
as to reduce the amount of water used.
l Landscape plants on the premises were replacedwith drought-resistant species.

Water consumption(thousand gallons)
800,000
600,000
400,000
200,000
0

2010* The amounts of water consumption until 2013 have beencorrected from those disclosed in last year’s report.

Waste and Chemical Substances
The amount of waste is influenced directly by customer demandand product formation. In 2014, because the facilities formonocrystalline silicon process were renewed and the way thatprocess water is used was improved, the amount of hazardous
waste generated decreased. This renewal of the facilities is
expected to help reduce the annual total amount of waste to
below the 2010 levels by 2017.
Main
improvements

List of Substances Subject to PRTR Reporting (Class 1 Designated Chemical Substances: 1 ton or more per year;
Specific Class I Designated Chemical Substances: 0.5 tons or more per year)
Period covered: April 2013 to March 2014

Energy and water are two main resources used in the productionof silicon wafers and their consumption must be reduced. In 2014
water consumption increased due to increased production volume.
Millions of gallons of water are collected and reused at the plants
every day.

l Focus of reduction activities was placed on major

sources of waste.
l Scrap materials were recycled and reused.
l The life cycle and filling amount of chemicals used
for washing tanks were optimized.
l The material approval process was made stricter.

Amount of hazardous waste generated
(t)
140
120
100
80
60
40
20
0

2010

2011

2012

2013

2014

(year)

20

Quality Control System

Quality Education

Improvement of Customer Satisfaction

communication meetings are reflected in our ongoing quality

Maintaining and enhancing product reliability and safety is one of

To enhance the reliability and safety of products, it is necessary

Customer Satisfaction Survey

improvement activities and utilized as invaluable information to

our most important social responsibilities.

to continuously improve the awareness and skills of both workers

To maintain our “first call” status among our customers, evaluations

help us create technological roadmaps towards meeting needs

and their supervisors.

received from customers are shared with relevant departments forfor miniaturization, higher quality, and other requirements as wellcontinuous improvement and analyzed regularly from four different

as to develop businesses that respond to market trends. Throughaspects: quality, cost, delivery, and service (QCDS).

this kind of interactive communication with customers, we strive

products that will satisfy customers under its Group-wide unified

For this reason, we have developed quality education programs

Quality Policy. It controls quality throughout all processes fromfor each job and level of employee and assigned instructors for each

design and development to production and shipment undereducation program to each silicon wafer production site in Japan toa quality management system based on ISO 9001 and ISO/TS

provide necessary education whenever needed.

16949 standards across all Group companies, including thoseabroad, so as to enhance the safety and reliability of its products.
We have also built an internal quality auditing system to ensure
continuous improvement of the quality management system.
Our silicon wafer production sites in Japan and abroad are
certified to ISO 9001 and ISO/TS 16949.

A total of 105 seminars were held at plants in Japan in 2014,

The results of analysis are shared among sales & marketing

to enhance customer satisfaction and to further improve theand other relevant departments for inclusion in improvement plans

quality of our products. While providing what we believe to be theto further enhance customer satisfaction.

information most useful to our customers, we also ensure that ourand more than 100 seminars are planned in 2015 as well.

customer communication activities comply with laws, regulations,
Flow for Sharing Customer Satisfaction (CS) Evaluation Information

Response to Quality Problems
Should a plant become the subject of a customer complaint orexperience an abnormality or other quality problem, the plant

Sales &
marketingdept.

Customers

handles the problem immediately, investigating the cause and
SUMCO Group’s Mission Statement and Quality Policy and Targets

Other management

Environmental managementcompanies to prevent similar problems from occurring at other

Occupational safety and health management

recurrence and shares it with all of the Group’s manufacturing

It is the mission of the SUMCO Group to be the world’s No.1 silicon wafer supplierby exceeding the expectation of our customers and stockholders, by recognizing
the value of our employees and by being good neighbors in communities.

[Quality targets](Deliberation body/

Data processing Sales & marketing dept.)
Analysis and(Deliberation body/issue identification Technology dept.)plants in Japan and abroad.

Sharing with
relevant departments(Understanding of what
measures are taken)
Quality
Cost
DeliveryServiceTechnology

those that customers have asked us to eliminate or reduce the use

Sales management dept./
Technology dept.

of are managed properly according to internal rules and standards.

Analysis of information
gathered from within
the Company andissue identification

Submission of Material Safety Data Sheets (MSDS)
SUMCO makes available material safety data sheets based on JIS
Z7250 to provide information on the related hazards of chemical

Follow-up on how
the measures
are taken

Flow for Sharing Quality Problems

Plants/relevant depts.

substances used by the Company and instructions on how tohandle them safely. We are planning to replace the sheets withsafety data sheets (SDS) based on JIS Z7253, a revised standard

Management review

Customer complaint,
abnormality found at a plantthat is compatible with the Globally Harmonized System ofClassification and Labelling of Chemicals (GHS)*, an internationallyrecognized system.

Meeting to discuss how to share
the problem across the Group
1st stage sharing

Management of Chemical Substances Containedin Products
SUMCO ensures that chemical substances regulated by law orThen, the Quality Assurance Department holds a meeting to[Mission Statement]

It is the quality policy of the
SUMCO Group to deliverworld class quality andreliability through anticipationof future needs; continuously
improving products, process,technology and service fortotal customer satisfaction.

Ensuring the Safety of Products

Sales management dept.

taking measures to prevent recurrence.
discuss and determine the best known method (BKM) to prevent[Quality Policy]

and ethical standards.

Site Data

The SUMCO Group works hard to supply high-quality

Social Activities
ReportInteraction with Customers

Environmental
ReportCSRManagement

Social Activities
ReportCommunication with Customers
PlantsSUMCO actively promotes interactive communication withcustomers through technical communication meetings in andoutside of Japan with the aim of grasping customer needs at

Meeting to determine BKM* Globally Harmonized System of Classification and Labelling of Chemicals(GHS): A system established by the United Nations in 2003 to provide internationallyunified standards for the classification of chemicals by types of hazard and toxicity
as well as to propose internationally harmonized labels and safety data sheets(SDS) in order to facilitate the proper management of chemicals.

an early stage, accomplishing product development swiftly,
SUMCO

SUMCO
TECHXIV

SUMCOTechnology

SUMCO
Phoenix

PT. SUMCO
Indonesia

The targets are shared across the SUMCO Group.

2nd stage sharing

Plantsand offering products that meet customer needs. Approx. 900
technical communication meetings were held in fiscal 2014.
Technical

communication

meetings

provideuswithopportunities to follow up on our products, present our proprietary
technologies, understand customer needs accurately at an earlystage, and ensure customers’ fair evaluation of and enhanced
trust in our products. Our customers’ needs identified at technical

21 SUMCO Corporation CSR Report 201522

Through periodic supplier briefings and the Supplier Handbook,	
Optimum inventory control for each category ofprocured material

SUMCO requests its suppliers to meet the requirements of EICC

Purchasing Policy

CSR Procurement

To manufacture products that will bring greater convenience

1. Basic Stance4. Strengthening of Business Continuity Plans forMaterial Procurement

and comfort to people around the world and contribute to the

SUMCO promotes responsible procurement to fulfill our social

In addition to well-planned emergency preparedness, such asenrichment of society, we ensure that our material procurement is

responsibilities across our entire supply chain. Together with ourmaintaining an optimum inventory that matches the level of risk as

based on mutual trust and fair transactions with superior suppliers.

suppliers, we pursue procurement that gives due consideration towell as sourcing across multiple channels, we also have a system

We also collaborate with our suppliers to together actively promote

human rights, work environments, safety and health, environmental

in place that enables us to investigate the impact of a disaster orcompliance with laws, regulations, and social norms, support

conservation, and other issues to ensure that customers can use

accident immediately after it takes place. At the same time, we will

global environmental conservation, and conduct other activities toour products with peace of mind and enhance the satisfaction ofalso source from alternative suppliers, adopt alternative materials,

fulfill our social responsibilities.

various stakeholders.

and take every other measure possible for procurement in theevent of an emergency to minimize the effect on production.

Source investigation and risk response	
We will investigate and confirm production sites andsources of major items and respond according to thelevel of risk involved.
	Development, maintenance, and review of business
continuity plans for each item procured
	We will develop business continuity plans for each major
item so that we can properly respond to the occurrenceof any risk.
Risk assessment of suppliers	We will periodically conduct checks on our main supplierswith respect to their financial condition, production
systems, business continuity plans, and others andrespond appropriately depending on the results.

Environmental
Report* None of tantalum, tin, gold or tungsten is necessary for the functionality or
production of SUMCO’s products. Therefore, our products are not subject tothe conflict minerals regulation based on Section 1502 of the Dodd-Frank WallStreet Reform and Consumer Protection Act enacted in July 2010.

	
We will review inventory quantities, storage sites,
transportation methods, and others for each type ofmaterial whenever necessary.

Social Activities
ReportInteraction with Suppliers

Code of Conduct concerning conflict minerals.

CSR
Management

3. Elimination of Conflict Minerals

2. Promotion of Our CSR Policy	We will share and unify our goals and visions with thoseof our suppliers and develop favorable partnerships
based on mutual trust.
Fair transactions
	
We will ensure that our procurement is clean, open,
and fair.
Promotion of value analysis (VA) activities
	We will encourage our suppliers to conduct value analysis(VA) activities in order to propose cost improvement
methods, new materials, new technologies, and others
and will actively adopt such proposals.
Compliance in purchasing activities
	We will comply with laws, regulations, and social norms
in the course of our purchasing activities.
Fulfillment of corporate social responsibilities
	We will fulfill our social responsibilities when conducting
purchasing activities across our entire supply chain,including with respect to our suppliers.
Green procurement	
We will procure environmentally considerate goods
to help ensure our priceless natural environment ispreserved and passed down to future generations.

Throughperiodicbriefings to suppliersInteraction with Shareholders and Investors

and daily procurement
activities, we request
our suppliers to make

Basic Policy on Information Disclosure

voluntary efforts topromote CSR-oriented
Specifically, we
to

each

IR Activities
SUMCO’s basic policy on investor relations is to ensure fair, impartial,

management.
distribute

Site Data	Transactions based on partnership

Briefing to Suppliersupplier a copy of our
Supplier Handbook, which includes a section on CSR as well as
our Purchasing Policy and requests to suppliers. The Supplier
Handbook is also posted on the procurement website for easy
reference at any time.
The Supplier Handbook also contains, as an attachment,	
Based on a full acknowledgment that the timely
disclosure of appropriate corporate information toinvestors constitutes the basis of a sound securities
market, we will conduct honest business practices by,among other efforts, ensuring accurate, equitable, andprompt disclosure of corporate information that meetsthe needs of investors.

and timely disclosure of the Company’s management vision, business	We will actively disclose corporate information that weare not required to disclose by law or rules of the stock
exchange but that we believe will be useful for investors.

published simultaneously to ensure fair disclosure of information

guidelines on CSR activities that we invite our suppliers tovoluntarily conduct which we have prepared and is based on

situation, financial performance, and other corporate information toallow investors to evaluate the Company’s value fairly. We also
ensure that opinions from investors are reflected in our management
for the continuous enhancement of our corporate value.
The English and Japanese version of documents arefor both Japanese and overseas investors.
The Timely Disclosure Network (TDnet) of the Tokyo Stock
Exchange is utilized to disclose information that needs to bedisclosed in a timely fashion, and documents are posted both

Conduct. Suppliers are requested to utilize these guidelines forCommunication with Shareholders
and Investors

their own CSR management practices and to also encourage their

Annual Shareholders’ Meeting

convey messages from top management and report businesssecondary and tertiary suppliers to use and follow the guidelines.

Annual shareholders’ meetings are where important decisions

performance and conditions to help investors develop a better

In 2014, we asked our major suppliers to fill out a self-

on the Company’s policies and other matters are made as wellunderstanding of the Company.

assessment questionnaire that we had prepared in accordanceas an opportunity to promote shareholders’ understanding of thewith the EICC Code of Conduct and checked the collectedCompany. Convocation notices, in both Japanese and English, arequestionnaires to evaluate the current situation regarding theposted on our website. Efforts are also made to provide explanations

suppliers’ CSR practices.

of the details of each agenda item and answer questions asked by

the Electronic Industry Citizenship Coalition (EICC) Code ofshareholders during meetings in as clear a manner as possible byutilizing narrated video footage.

in Japanese and English simultaneously on our website. Annual
Reports and Message to Shareholder are also published to

Stock code: 3436

SUMCO
Message to Shareholders
Business Results FY2015 (Interim)

Developing Technology to Create the Future

January 1, 2015–June 30, 2015

Silicon Wafers Are
the Fountainhead of Technology

INDEX
01 To Our Shareholders / Consolidated
Financial Highlights
03 Summary of Business Results for theFirst Half of Fiscal 2015 and Outlook for
the First Three Quarters
04 Q&A on Financial Results and Outlook
05 Special Feature: Electronic Devices andSemiconductors Driving
Growth in 300 mm
Wafers and Demand/
Supply Trend for 300 mm
Wafers07 Consolidated Financial Statements
09 Corporate Information
10 Information for Shareholders

Message to Shareholder

23 SUMCO Corporation CSR Report 2015

Annual Report24

factories and plants are actively involved in local activities.

Support for a Vocational Facility for
People with Disabilities

Respect for Human Rights

CSR
Management

To pursue the SUMCO Vision of “Empower Employee

City, Nagasaki Prefecture), many employees participate in the

The SUMCO Group holds a meeting of the Human Rights

Awareness of Profit” the President’s Award was established inconcerted cleanup efforts for the Omura Bay area, hosted by theAwareness Promotion Committee, made up of representatives

2013. This award will be presented every year to individuals andSociety to Beautify Omura Bay, which is organized by municipalities

from all Group companies, every year to ensure that human rights

organizations—including those of Group companies—that haveand others in the area. The event is held twice a year.

awareness-raising activities are conducted on an ongoing basis

made a meaningful contribution to increasing the Group’s value.

Together with nearby companies, SUMCO TECHXIV

throughout the Group. At the meeting, the policy for activities for

Furthermore, in line with our aim to enhance “Competitivenessused PET bottles and empty cans are collected from the plant

Corporation’s Miyazaki Plant (Miyazaki City, Miyazaki Prefecture) isthe coming fiscal year is decided and shared so that activities

in Overseas Markets,” which is included in SUMCO Vision, weand homes of employees and provided, via a recycling company,

involved in a twice-yearly cleanup activity for Kiyotake-cho named

based on that policy—including lectures by external experts andare working to develop a globally competitive human resources

to a vocational facility for people with disabilities to help increase

as ‘Kiyotake-cho KINRIN Clean Activity’, the town in which thetraining using audiovisual aids—will be carried out at each site

by encouraging employees to become familiar with and respect

employment opportunities for such people. Using the money

plant is located, as well as a cleanup activity for the Kiyotake Riverand Group company. Furthermore, to maintain a comfortable anddifferent cultures and values as well as by enhancing programs forreceived from the recycling firm for the sale of such bottles andevery October.

pleasant working environment at all times, a workplace bullying

studying abroad and acquiring foreign language skills.

cans, the plant also periodically purchases useful items andconsultation desk is set up at each site where both male anddonates to the facility.

female staff members are available for consultation by anyone
whenever needed. Moreover, the SUMCO Group does not use

Participation in Cleanup andBeautification Activities

child labor of any kind, and through daily work management,
ensures the absence of forced labor. We also ensure that both

SUMCO’s Chitose Plant (Chitose City, Hokkaido) collects garbage

male and female employees receive fair treatment and that the paythat has been dumped along sidewalks with a total length of
1.5 km inside the Chitose Industrial Complex. The plant will continue
this activity to keep the sidewalks pleasant for all users, including

system is not gender-biased.
Omura Bay area cleanup activity

Cleanup activity for the Kiyotake Riverjoggers and people who use the sidewalks on their way to work

Joint Fire Drill with a Social Welfare Facility

and school.

At SUMCO TECHXIV Corporation's Nagasaki Plant (Omura City,

The JSQ Division (Akita
City) participates with local

drill based on the scenario of a fire at a nearby social welfare facility

residents and companies in aonce a year.

the Omono River organized by
the city every year.

The Number of Employees Who Received Human Rights
Awareness Training in the Past Five Years (SUMCO Group [Japan])(employees)
1,200

Nagasaki Prefecture), employees participate in a joint emergency

cleanup activity for areas along
Omono River area cleanup activity

Site DataAt the Yonezawa Plant (Yonezawa City, Yamagata Prefecture),

983
900

* Between 2010 and2012, the fiscal year
starts in February andends in January thefollowing year.
The fiscal year 2013
starts in February andends in December.
The fiscal year 2014
starts in January andends in December.

781
638

600

Participation in Local Disaster
Prevention Event

1,057

1,153

300
0

2010

2011

2012

2013

2014

(FY)

Presentation by an up-and-coming engineer

Utilization and Development ofa Diverse Workforce
Employment of People with Disabilities
SUMCO established SUMCO Support Corporation, which gives
special consideration to employing people with disabilities, in
2004. In May the same year, SUMCO Support was designatedas a “special subsidiary company” by the government. Ever since,
people experiencing various challenges in their lives have found job

The Yonezawa Plant (Yonezawa City, Yamagata Prefecture)

SUMCO’s Kyushu Factory (Saga Prefecture) actively engages

actively engages in various environmental activities in cooperationin activities to promote disaster preparedness. As part ofwith other companies in the Hachimanpara Industrial Park in whichthese

the plant is located. These activities include planting seasonalparticipated in a “early-fire

As declared in the SUMCO Vision, SUMCO aspires to become

order to help individual employees reach their full potential as wellflowers in median strips of roads inside the park, in which the local

extinguishingcompetition”

the “World’s Best in Technology.” To reach this goal, diversified

as to provide employment opportunities and maintain and improvegovernment and a local elementary school also take part, as well asorganized by the Imari Arita

training opportunities are provided to employees at all levels, fromsupportive work environments for people with disabilities.

releasing white-spotted charr fry into the Tenno River, which flows

Fire Department in November

new recruits to managers and executives, to encourage them tothrough in the park, together with local elementary school children.

2014, where it won first placepursue lifelong education and stay abreast of changing needs

efforts,out of 23 teams.

employees

Early-fire extinguishing competition

Participation in Local Traffic Safety
Campaigns

Planting seasonal flowers in a medianstrip

25 SUMCO Corporation CSR Report 2015

Releasing white-spotted charr fry into
the river

Environmental
ReportAt SUMCO TECHXIV Corporation’s Nagasaki Plant (Omura

Aspiring to be a good partner for local communities, SUMCO’s

Interaction with Employees

Social Activities
ReportInteraction with Local Communities

Human Resources Development

as well as to develop them into individuals able to think and act

opportunities and been employed in a wide range of areas, both at
SUMCO Support and various other Group companies. The SUMCO
Group continues its efforts to fit the right person to the right job in

Employment Ratio of People with Disabilities(SUMCO Group [Japan])(%)
2.2

independently. Young engineers
are also provided every year

2.1

with an opportunity to present

2.0

SUMCO’s Chitose Plant (Chitose City, Hokkaido) participates in a traffic

theirachievements

1.9

safety campaign undertaken during the traffic safety campaign week

to the President and senior

1.8

each spring and autumn. Participation involves the employees lining

management as a means ofup along a road to remind drivers and pedestrians about traffic safety.

enhancing their motivation.

research

1.7

President’s Award

2.12
1.99

2.01
Statutory employment
ratio until March 2013:
1.80%

1.85
1.81
2010

2011

2012

2013

2014 (FY)

Statutory employment
ratio since April 2013:
2.0%* The figure for eachfiscal year is theaverage of the period
from April to March of
the following year.

26

CSR
Managementthat allows experienced and willing employees to continue tocontribute their high-level skills after mandatory retirement at age

In addition, there are no workplaces with a particularly highDue to the amendment of the Act on Stabilization of

Safety and Health/Disaster Prevention Awards Received
Year & month

Employment of Elderly Persons enforced on April 1, 2013, we
will gradually abolish the criteria limiting employees’ eligibility

Male

FemaleTotal

Maternity leave

—

8

8

Childcare leave

1

7

8

Nursing care leave

1

0

1

Occupational Safety and HealthManagement
We have introduced occupational safety and health management
systems (OSHMS) aimed at achieving zero accidents at various
workplaces. These systems are designed to prompt business
operators and workers to cooperate with each other to implement
safety and health management voluntarily and continuously
through an established PDCA (plan-do-check-act) cycle in orderinstrumental in the continuous improvement of the safety andhealth standards of our business sites.
To prevent accidents and mitigate risks, SUMCO implements

We have conducted a stress check for each employee

27 SUMCO Corporation CSR Report 2015

SUMCO TECHXIV
Corp. Miyazaki
Plant

October 2013Federation of Labour Standards
Associations Chairman’s
Commendation for Safety
Management

SUMCO
Technology Corp.
Noda Plant
SUMCO Corp.
Kyushu Factory(Kubara)Awarded site

such issues as the production situation.
Furthermore, the Labor-Management Study Committee
meets regularly throughout the year to discuss important issues
such as the improvement of working conditions and review

SUMCO Corp.

October 2013

October 2008

Akita Pref. Labor Standards
Association Chairman’s Award

Japan Super
Quartz Corp.1

October 2013

October 2008

SUMCO TECHXIV
Corp. Nagasaki
Plant

SUMCO Corp.
Kyushu Factory(Saga)

Employment Status

Nagasaki Labor Bureau Director’sCommendation for Safety and
HealthMinistry of Health, Labour andWelfare Class 2 No Accident
Record (10.5 million hours)

Ministry of Health, Labour andWelfare Class 1 No Accident
RecordSUMCO TECHXIV
Corp. Nagasaki
Plant

SUMCO Corp.
Kyushu Factory(Kubara)Number of Employees (Consolidated)

December
2008

Ministry of Health, Labour andFebruary 2014 Welfare Class 1 No Accident
Record (7 million hours)

May 2014

Letter of Appreciation from
Saga Pref. Governor for Safety
Management of High-Pressure
Gas

SUMCO Corp.
Kyushu Factory(Saga)

July 2015

Hokkaido Labor Bureau Director’sCommendation

SUMCO Corp.
Chitose Plant

June 2009

July 2009

September
2009

Fire and Disaster Management
Agency Commissioner’s
Commendation for the Safety
Management and Security ofHazardous Materials

SUMCO TECHXIV
Corp. Nagasaki
Plant

Commendation and Letterof Appreciation from Health,Labour and Welfare Minister for
Cooperation in Blood Donation

SUMCO TECHXIV
Corp. Nagasaki
Plant

Commendation from Chief of
SUMCO TECHXIV
Miyazaki Pref. Police Headquarters Corp. Miyazaki
for the Promotion of Traffic Safety Plant
SUMCO Corp.
Kyushu Factory(Saga)

Ministry of Health, Labour andWelfare Class 1 No Accident
Record (7 million hours)

SUMCO Corp.
Kyushu Factory(Imari)Letter of Appreciation fromJapanese Red Cross Society

SUMCO Corp.
Kyushu Factory(Imari)November
2010
November
2010

Current JSQ Division* Awards listed include those received by the date of publication of this report.

of various systems from multifaceted, holistic, and long-term
perspectives, thus allowing labor and management to work closely
together to address various issues.

(as of the end of December 2014)

Item

Regular employees
3,415

SUMCO

Temporaryemployees
134

7,396
Consolidated

Japan

5,335

Overseas

2,061

289

1

Ministry of Health, Labour andFebruary 2010 Welfare Class 1 No Accident
Record (7 million hours)

Accident Frequency Rate2
Manufacturing industry average

SUMCO Group (Japan)(frequency rate)
1.20

1.12

0.99

0.98

1.05

1.00

1.06

0.94

0.90
0.60
0.30

Number of Employees by Region (Consolidated)
RegionNo. of employees

Japan

5,335

North America

558

Southeast Asia

349

East Asia

1,133

Europe

21

Total

7,396

0.37
0.17
0

0.00
2008
2

2009

0.14
0
2010

2011

2012

0.10
2013

0

Breakdown of Employees (Consolidated)2014 (year)

Accident frequency rate = Number of workers killed or injured in occupational
accidents ÷ Total working hours × 1,000,000

December
2010

Golden Order of Merit fromJapanese Red Cross Society(Blood Donation)

SUMCO TECHXIV
Corp. Miyazaki
Plant

December2010

Accreditation as a Cooperating
Business with Miyazaki City
Volunteer Fire Corps

SUMCO TECHXIV
Corp. Miyazaki
Plant

Labor-Management Relations

Health, Labour and Welfare
Minister’s Commendation fromJapanese Red Cross Society

SUMCO Corp.
Kyushu Factory(Imari)relations based on mutual understanding and trust and to solve

August 2011

August 2011

Order of Merit from Japanese Red
Cross Society

SUMCO Corp.
Kyushu Factory(Saga)

including safety education, risk prediction, “pointing and calling,”
and reporting of close calls.

Nuclear and Industrial Safety
Agency Director-General’s Award
for Safety Management of HighPressure Gas

Also, at labor-management meetings held once a monthat each plant, plant managers and union representatives discuss

October 2008

risk assessments for facilities, operations, chemical substances,and others. Various activities are also performed to ensure safety,

November
2011

information and promote communication.

Saga Labor Bureau Director’sCommendation for Safety and
Healthto prevent accidents and create comfortable work environmentsthat will help enhance employee health. The systems are thus

SUMCO Corp.
Nagasaki Office

Japan Industrial Safety and Health
Association Chairman’s Awardby offering childcare leave, nursing care leave, and special work

The Number of Employees Who Took Family Leave(January to December 2014) (SUMCO)

Nagasaki Labor Bureau Director’sCommendation for Safety and
HealthSUMCO TECHXIV
Corp. Miyazaki
Plant

Childcare Leave and Nursing Care Leavearrangements for employees with a child aged under three years old.

October 2011

labor-management meeting is generally held twice a year to share

March 2008

continue to work.

We support employees’ childcare and other family care responsibilities

Award

Awarded site

Letter of Appreciation from
Miyazaki Pref. Governor for
Cooperation with Volunteer Fire
Corps

for reemployment under a “transitional measure,” as defined in
the act, and will eventually reemploy all employees who wish toAwardinherent risk of accidents or illnesses within the Group.

60, provided their skill sets meet the Company’s needs. Employees
reemployed under the scheme can work until the age of 65.

Year & month

Environmental
Reportof work environments.

Social Activities
Reportacross the Group since 2007 to promote the further improvement

SUMCO has a post-retirement reemployment scheme in place

Site Data

Employment of Older Workers

Managers

Generalemployees

Total
6,753

Male

735

6,018

Female

35

608

643

Total

770

6,626

7,396

SUMCO’s basic labor-management policy is to maintain soundissues through discussion for the perpetual development of theCompany and improvement of working conditions.
Specifically, with the aim of maintaining business operations
based on integrated efforts between labor and management, a28

2015 data on the acquisition status of ISO 14001 certification for
the SUMCO Group’s business sites/plants and regulated substancesdischarged from each site/plant to the surrounding air and water
SUMCO Corporation
Kyushu Factory (Nagahama)

SUMCO Corporation
Kyushu Factory (Kubara)

SUMCO Corporation
Kyushu Factory (Saga)

Name of business site/plant

SUMCO Corporation
Noda Office

SUMCO Corporation
Yonezawa Plant

Scope of business

Design, development andmanufacture of silicon wafers

Design, development andmanufacture of monocrystalline
silicon ingots and silicon wafers

Design, development andmanufacture of monocrystalline
silicon ingots and silicon wafers

Scope of business

Manufacture of Silicon wafer

Design, development and manufacture of
monocrystalline silicon ingots

Examiningorganization

Japan Quality Assurance
Organization

Japan Quality Assurance
Organization

Japan Quality Assurance
Organization

Examiningorganization

Japan Quality Assurance Organization

Japan Quality Assurance Organization

Date ofacquisition

January 11, 1999

January 11, 1999

January 11, 1999

Date ofacquisition

January 11, 1999

January 11, 1999

Date ofrenewalJanuary 11, 2014

January 11, 2014

January 11, 2014

Date ofrenewalJanuary 11, 2014

January 11, 2014

Measurement results(regulation value)

Measurement results(regulation value)

Measurement results(regulation value)

Measurement results(regulation value)

Measurement results(regulation value)

Air

Air

Nitrogen oxides (NOx)ppm

Boiler 96 (150)

Boiler 54 (150)

Boiler 60 (110)

Nitrogen oxides (NOx)ppm

Boiler 74 (260)

Boiler / ( / )Sulfur oxides (SOx)m3N/h

ND (K-value regulation 17.5)

ND (K-value regulation 17.5)/

Sulfur oxides (SOx)m3N/h

0.89 (K-value regulation 9.0)/

Soot and dust

g/m3N

Boiler ND ( / )Boiler ND ( / )Boiler ND (0.001)

Soot and dust

g/m3N

Boiler 0.004 (0.3)

Boiler / ( / )

Water

1

Status of acquisition of
ISO 14001 certification

Regulation
value

Measurement
resultRegulation
value

Measurement
resultRegulation
value

Measurement
resultWater

Site Data

Status of acquisition of
ISO 14001 certification

Social Activities
ReportName of business site/plant

Regulation value

Measurement result

Regulation value

Measurement result

Biological oxygen demand (BOD)

mg/l

/

/1

/

/1

10

4.8

Biological oxygen demand (BOD)

mg/l

25

19.4

600

19.5

Chemical oxygen demand (COD)

mg/l

30

11

30

6.4

/

/

Chemical oxygen demand (COD)

mg/l

20

14.8

/

/

Suspended solids (SS)

mg/l

30

13

30

5

25

6

Suspended solids (SS)

mg/l

50

12

600

59.4

N-hexane extract

mg/l

5

ND

5

ND

3

ND

N-hexane extract

mg/l

3

ND

5

ND

Iodine consumption

mg/l

/

/

/

/

/

/

Iodine consumption

mg/l

/

/

220

3.8

Fluorine and its compounds

mg/l

8

3.3

8

2.73

3

0.9

Fluorine and its compounds

mg/l

8

5.5

8

5.5

Ammoniac nitrogen

mg/lAmmoniac nitrogen

mg/l

Nitrate nitrogen

mg/l

Nitrate nitrogen

mg/l

100

3.2

380

88.7

Nitrite-nitrogen

mg/l

Nitrite-nitrogen

mg/l

Nitrogen content (T-N)

mg/l

120

42

120

23

60

15.9

Nitrogen content (T-N)

mg/l

30

16

/

/

Chromium content (T-Cr)

mg/l

0.2

ND

0.2

ND

0.2

ND

Chromium content (T-Cr)

mg/l

0.05

ND

0.5

ND

Phosphorus content (T-P)

mg/l

12

0.27

12

0.41

8

0.65

Phosphorus content (T-P)

mg/l

2.5

0.3

/

/

Arsenic

mg/l

0.05

ND

0.05

ND

0.1

ND

Arsenic

mg/l

0.05

ND

0.1

ND

Trichlorethylene

mg/l

/

ND

/

ND

0.15

ND

Trichlorethylene

mg/l

0.3

ND

/

/

80

18

80

19

100

10.6

Only the drainage standard concerning COD applies to the Kyushu Factory (Nagahama) and Kyushu Factory (Kubara) because their treated drainage is discharged into thesea.

* Measurement results provided on pages 29-33 indicate maximum values identified during the reporting period. Representation of the symbols used in the tables is as follows:“/” stands for “non-target,” “ND” for “not detected,” and “—” for “not measured.”* Regulation values indicate values specified by applicable national and local laws and regulations or boundary values specified by each related area.
* For calculation of substances discharged to the air, only data associated with combustion engines is used.
* Figures for nitrogen compounds discharged to the water indicate total value for the following three items: the value obtained by multiplying ammoniac nitrogen by 0.4; nitrate
nitrogen; and nitrite-nitrogen.

29 SUMCO Corporation CSR Report 2015

Environmental
ReportCSRManagement

Site Data* The drainage standard concerning COD applies to the Noda Office based on the total pollutant load control standards for drainage into Tokyo Bay.
* Wastewater from the Yonezawa Plant is discharged to a public sewer and therefore falls under the category of “wastewater discharged into rivers after treatment at sewage
plants” under the Sewerage Act. For this reason, the regulation value for fluorine compounds is 8 mg/l.

30

CSR
Management
SUMCO Corporation
JSQ Division

Name of business site/plant

SUMCO TECHXIV Corporation
Nagasaki Plant

SUMCO TECHXIV Corporation
Miyazaki Plant

Scope of business

Design, development and manufacture ofsilicon wafers

Design, development and manufacture ofquartz crucibles

Scope of business

Design, development and manufacture of
monocrystalline silicon ingots and silicon wafers

Design, development and manufacture of
monocrystalline silicon ingots and silicon wafers

Examiningorganization

Japan Quality Assurance Organization

Bureau Veritas Japan Co., Ltd.

Examiningorganization

Japan Quality Assurance Organization

Japan Quality Assurance Organization

Date ofacquisition

January 11, 1999

November 22, 1999

Date ofacquisition

April 17, 1998

December 25, 1998

Date ofrenewalJanuary 11, 2014

December 14, 2014

Date ofrenewalApril 17, 2013

December 25, 2013

Measurement results(regulation value)

Measurement results(regulation value)

Measurement results(regulation value)

Measurement results(regulation value)

Air

Status of acquisition of
ISO 14001 certification

Air

Nitrogen oxides (NOx)ppm

Boiler / ( / )Firing furnace ( / )Nitrogen oxides (NOx)ppm

Boiler 85 (260)

Boiler 88 (150)

Sulfur oxides (SOx)

m3N/h

/

/

Sulfur oxides (SOx)m3N/h

ND (K-value regulation 17.5)/

Soot and dust

g/m3N

Boiler / ( / )Firing furnace 0.08 (0.2)

Soot and dust

g/m3N

Boiler ND (0.3)

Boiler — (0.1)

Water

Regulation value

Measurement result

Regulation value

Measurement result

Water

Site Data

Status of acquisition of
ISO 14001 certification

Regulation value

Measurement result

Regulation value

Measurement result

Biological oxygen demand (BOD)

mg/l

600

2.9

160

7.8

Biological oxygen demand (BOD)

mg/l

600

37.5

25

2.8

Chemical oxygen demand (COD)

mg/l

/

/

/

/

Chemical oxygen demand (COD)

mg/l

/

/

/

/

Suspended solids (SS)

mg/l

600

8

200

49

Suspended solids (SS)

mg/l

600

23

30

2

N-hexane extract

mg/l

5

ND

5

ND

N-hexane extract

mg/l

5

ND

5

ND

Iodine consumption

mg/l

/

/

/

/

Iodine consumption

mg/l

/

/

/

/

Fluorine and its compounds

mg/l

8

2.9

8

4.2

Fluorine and its compounds

mg/l

15

6.95

8

1.5

Ammoniac nitrogen

mg/lAmmoniac nitrogen

mg/l

Nitrate nitrogen

mg/l

Nitrate nitrogen

mg/l

380

56.3

100

11.0

Nitrite-nitrogen

mg/l

Nitrite-nitrogen

mg/l

Nitrogen content (T-N)

mg/l

/

/

120

2.9

Nitrogen content (T-N)

mg/l

240

75.6

120

10

Chromium content (T-Cr)

mg/l

2

ND

2

ND

Chromium content (T-Cr)

mg/l

2

ND

0.2

ND

Phosphorus content (T-P)

mg/l

/

/

16

0.15

Phosphorus content (T-P)

mg/l

32

0.11

16

0.03

Arsenic

mg/l

/

/

0.1

ND

Arsenic

mg/l

0.1

ND

0.1

−

Trichlorethylene

mg/l

/

/

0.3

ND

Trichlorethylene

mg/l

0.3

ND

0.3

−

/

/

100

2.4

* The Sewerage Law applies to Chitose Plant because drainage from these facilities is discharged into the sewerage system (subsequently released into the river). Accordingly,
the fluorine compound regulation value is set as 8 mg/l.
* Until last year, average daily amounts, rather than regulation values, were shown in the regulation values column for JSQ Division (excluding those for nitrogen oxides, sulfur
oxides, and soot and dust). This has been corrected so that the column shows regulation values (maximum acceptable amounts) from this year.

31 SUMCO Corporation CSR Report 2015

Environmental
ReportSUMCO Corporation
Chitose Plant

Social Activities
ReportName of business site/plant* The Sewerage Law applies to Nagasaki Plant because drainage from this facility is discharged into the sewerage system (subsequently released into the sea). Accordingly, thefluorine compound regulation value is set at 15 mg/l.
* For the regulation value of nitrogen oxides for Nagasaki Plant, the figure “180” was indicated until last year. The correct value is in fact “260.” “180” is our voluntary regulation value.
* The frequency of measurement of air dust and soot at Miyazaki Plant has been revised to once every five years. (The next measurement will take place in 2018.)* Only the drainage standard concerning BOD applies to Miyazaki Plant because its treated drainage is discharged into the river.
* Miyazaki Plant does not use arsenic or trichloroethylene and is therefore exempt from measurement.

32

GRI Guidelines Comparison Charts
Indicators

Pages

P1

Name of business site/plant

SUMCO Phoenix Corporation
Albuquerque Factory

SUMCO Phoenix Corporation
Phoenix Factory

Scope of business

Design, development and manufacture ofsilicon wafers

Design, development and manufacture of
monocrystalline silicon ingots and silicon wafers

DNV

DNV

Examiningorganization
Status of acquisition of
ISO 14001 certification

Date ofacquisition

June 19, 2000

June 19, 2000

Date ofrenewalApril 16, 2015

April 16, 2015

P4

Operational structure of the organization, including main divisions,operating companies, subsidiaries, and joint ventures.

P4

2.4

Location of organization’s headquarters.

P4

2.5

Number of countries where the organization operates, and names ofcountries with either major operations or that are specifically relevantto the sustainability issues covered in the report.

P4

2.6

Nature of ownership and legal form.

P4

EC8

2.7

Markets served (including geographic breakdown, sectors served, andtypes of customers/beneficiaries).

P4

Environmental

2.8

Scale of the reporting organization, including:• Number of employees;• Number of operations;• Net sales (for private sector organizations) or net revenues (for public
sector organizations);• Total capitalization broken down in terms of debt and equity (forprivate sector organizations); and• Quantity of products or services provided.

2.10

P4

—

Awards received in the reporting period.

P27, P28

3.2

Date of most recent previous report (if any).

—

12.6 (26.0)

3.3

Reporting cycle (annual, biennial, etc.)

P3

3.4

Contact point for questions regarding the report or its contents.

Back covert/y0.06 (0.84)

1.09 (2.88)

Water

Report Scope and Boundary

Regulation value

Measurement result

Regulation value

Measurement result

Biological oxygen demand (BOD)

mg/l

/

/

/

/

Chemical oxygen demand (COD)

mg/l

/

/

/

/

Arsenic

mg/l

2.09

/

0.13

ND

Cadmium

mg/l

/

/

0.047

ND

Copper

mg/l

/

/

1.5

0.07

Cyanide

mg/l

0.5

/

2

ND

3.5

P9

3.6

Boundary of the report (e.g., countries, divisions, subsidiaries, leased
facilities, joint ventures, suppliers).

P3

3.7

State any specific limitations on the scope or boundary of the report.

P3

3.8

Basis for reporting on joint ventures, subsidiaries, leased facilities,
outsourced operations, and other entities that can significantly affectcomparability from period to period and/or between organizations.

—

3.9

Data measurement techniques and the bases of calculations, including
assumptions and techniques underlying estimations applied to thecompilation of the Indicators and other information in the report.

P16, P29

3.10

Explanation of the effect of any re-statements of information
provided in earlier reports, and the reasons for such re-statement(e.g., mergers/acquisitions, change of base years/periods, nature ofbusiness, measurement methods).

—

3.11

Significant changes from previous reporting periods in the scope,boundary, or measurement methods applied in the report.

—

P34

/

/

Lead

mg/l

1

/

0.41

ND

Governance
4.1

Governance structure of the organization, including committees under
the highest governance body responsible for specific tasks, such as
setting strategy or organizational oversight.

P10

4.2

Indicate whether the Chair of the highest governance body is also
an executive officer (and, if so, their function within the organization’s
management and the reasons for this arrangement).

P10

For organizations that have a unitary board structure, state the numberof members of the highest governance body that are independent
and/or non-executive members.

P10

4.4

Mechanisms for shareholders and employees to provide
recommendations or direction to the highest governance body.

P24, P28

4.8

Internally developed statements of mission or values, codes ofconduct, and principles relevant to economic, environmental, andsocial performance and the status of their implementation.

P1, P13,
P21, P23

4.9

Procedures of the highest governance body for overseeing theorganization’s identification and management of economic,
environmental, and social performance, including relevant risks andopportunities, and adherence or compliance with internationally agreed
standards, codes of conduct, and principles.

P10

Processes for evaluating the highest governance body’s own
performance, particularly with respect to economic, environmental,
and social performance.

P10

0.0023

ND

Molybdenum

mg/l

2

/

/

/

Selenium

mg/l

0.46

/

0.1

ND

Silver

mg/l

5

/

1.2

ND

Zinc

mg/l

2.2

/

3.5

0.03

4. Governance, Commitments, and Engagement

4.3

Suspended solids (SS)

mg/l

/

/

/

* Monitoring for pH and flow is only required for Albuquerque Factory. The City of Albuquerque monitors the effluent discharge on a regular basis.

/

4.10

33 SUMCO Corporation CSR Report 2015

P17

Total water withdrawal by source.

P16, P18

Aspect: Emissions, Effluents, and Waste
EN16

Total direct and indirect greenhouse gas emissions by weight.

P16, P17

EN18

Initiatives to reduce greenhouse gas emissions and reductions
achieved.

P17, P20

EN29

Significant environmental impacts of transporting products and othergoods and materials used for the organization’s operations, andtransporting members of the workforce.

P17

Labor Practices and Decent Work
Disclosure on Management Approach—

Aspect: Employment
Total workforce by employment type, employment contract, andregion, broken down by gender.

P28

Aspect: Occupational Health and Safety
LA7

Rates of injury, occupational diseases, lost days, and absenteeism,and total number of work-related fatalities, by region and by gender.

P28

LA8

Education, training, counseling, prevention, and risk-control programsin place to assist workforce members, their families, or community
members regarding serious diseases.

P27

Composition of governance bodies and breakdown of employees per
category according to gender, age group, minority group membership,
and other indicators of diversity.

P28

Aspect: Equal Remuneration for Women and Men
Ratio of basic salary and remuneration of women to men by employee
category, by significant locations of operation.

P26

Human Rights
Disclosure on Management Approach//

Energy saved due to conservation and efficiency improvements.

LA14

36

0.004

P16, P17

EN5

LA13

mg/l

mg/l

P16

Indirect energy consumption by primary source.

Aspect: Diversity and Equal Opportunity

Fluorine and its compounds

Mercury

P13–14

Direct energy consumption by primary energy source.

P26

Aspect: Investment and Procurement Practices

GRI Content Index
Table identifying the location of the Standard Disclosures in the report.

P25

EN4

LA1

Process for defining report content, including:• Determining materiality;• Prioritizing topics within the report; and• Identifying stakeholders the organization expects to use the report.

3.12

Development and impact of infrastructure investments and services
provided primarily for public benefit through commercial, in-kind, or
pro bono engagement.

Aspect: Transport

0.84 (10.2)

PM10 (Particulate Matter)

—

EN3

EN8

P3

0.073 (1.0)

Disclosure on Management Approach
Aspect: Indirect Economic Impacts

Aspect: Water

Significant changes during the reporting period regarding size,
structure, or ownership including:• The location of, or changes in operations, including facility openings,
closings, and expansions; and• Changes in the share capital structure and other capital formation,
maintenance, and alteration operations (for private sector
organizations).

Reporting period (e.g., fiscal/calendar year) for information provided.

0.056 (0.34)

Economic

Disclosure on Management Approach

3.1

t/y

5. Management Approach and Performance Indicators

Aspect: Energy

Measurement results(regulation value)

Sulfur oxides (SOx)

P9

2.3

Measurement results(regulation value)t/yP9

Basis for identification and selection of stakeholders with whom toengage.

P4, P6

Report Profile

Nitrogen oxides (NOx)

List of stakeholder groups engaged by the organization.

4.15

Primary brands, products, and/or services.

2.9

P11, P15

4.14

2.2

3. Report Parameters

Air

Explanation of whether and how the precautionary approach or
principle is addressed by the organization.

CSRManagement

Name of the organization.

4.11

Stakeholder Engagement

2. Organizational Profile
2.1

Pages

Environmental
ReportStatement from the most senior decision-maker of the organization(e.g., CEO, chair, or equivalent senior position) about the relevance ofsustainability to the organization and its strategy.

Indicators

Commitments to External Initiatives

Social Activities
Report1.1

Items

Site Data

Items
1. Strategy and Analysis

HR3

Total hours of employee training on policies and procedures
concerning aspects of human rights that are relevant to operations,
including the percentage of employees trained.

P26

Aspect: Child Labor
HR6

Operations and significant suppliers identified as having significant risk
for incidents of child labor, and measures taken to contribute to theeffective abolition of child labor.

P26

Disclosure on Management Approach

P11

Society

Aspect: Corruption
SO3

Percentage of employees trained in organization’s anti-corruption
policies and procedures.

P11

Product Responsibility
Disclosure on Management Approach

P21

Aspect: Customer Health and Safety
PR1

Life cycle stages in which health and safety impacts of products andservices are assessed for improvement, and percentage of significant
products and services categories subject to such procedures.

P22

Aspect: Product and Service Labeling
PR5

Practices related to customer satisfaction, including results of surveys
measuring customer satisfaction.

P22

34

Inquiries:
Legal & CSR Office, General Affairs Department
SUMCO Corporation
Seavans North, 1-2-1 Shibaura, Minato-ku, Tokyo 105-8634
E-mail : sumco-csr@sumcosi.com.