CSR Report 2020

Editorial Policy
CONTENTS

Top Message…………………………………… 02

Chemical Substance Management…… 49

SUMCO Vision…………………………………… 05

Social………………………………………………51

The SUMCO Group's Business Activities

Speedy, Accurate and Fair Disclosureand the Sustainable Developmentof Corporate Information…………………52

Goals (SDGs)………………… … … … … … …… 08

The Pursuit of Quality and Reliability……54

Governance………………………………………11

Supply Chain…………………………………58

Corporate Governance……………………12

Respect for Human Rights…………………64

Compliance…………………………………… 20

Initiatives for Safety and Health…………71

Risk Management……………………………24

Support Raising

Environmental…………………………………29

Next-Generation Children…………………78

Environmental Management…………… 30

Social data……………………………………80

Environmental Load ofCommunity-based Social

Business Activities……………………………36

Contribution Activities……………………82

Combating Global Warming………………43

Site Data……………………………………………88

Reduction of Waste………………………… 46
Effective Use of Water Resources……… 47

Editorial Policy
The objective of this report is to convey the SUMCO Group’s stance on CSR and report its activities to stakeholders in order to enhancetheir understanding and earn their support. This report has been prepared with reference to portions of the Global Reporting Initiative(GRI) Sustainability Reporting Guidelines, Standards.

Period Covered
January 2019 to December 2019
Data for periods outside the above are noted as such.

Organizations Covered
SUMCO Corporation and its Group companies.
“SUMCO”and“the Company”as used in this report refers to SUMCO Corporation.
The Financial Highlights cover SUMCO Corporation and its consolidated subsidiaries. Other performance data outside the above scope
are noted as such.

Publication
June 2020

Note Regarding Forward-Looking Statements
Projections, predictions, prospects, and other forward-looking statements contained in this report are made by the Company basedon the information available at the time of the release of the statements and therefore are subject to risks and uncertainties. Due tovarious factors, actual results may vary significantly from results anticipated in the forward-looking statements.

1

Top Message

CEO & Chairman of the Board

Mayuki Hashimoto
Currently, many people around the world, such as medical professionals and workers engaged in supply of
daily necessities and logistics, keep making all-out eﬀorts day and night to prevent the spread of COVID19. SUMCO wishes to express our great respect and gratitude to all of those people for the eﬀorts, andsincerely prays for the early recovery of the infected people and the end of the infection as soon as
possible.
SUMCO Group has activated our BCP (Business Continuity Plan), and we are implementing all measuresconsidered to be eﬀective, including wearing masks and hand sanitization, full teleworking of head oﬃce
operations and large-scale meetings, restriction of business trips, and refraining from nonessential andnon-urgent outings.
Semiconductors are widely used in a large variety of electronic apparatus, including communicationequipment essential for telework and web conferences, medical equipment related to human life andtransport equipment that requires high level of safety. As a company that plays a part in thesemiconductor supply chain, SUMCO is fully committed to fulﬁlling its responsibility for supplying siliconwafers so that we can contribute to the ﬁght against COVID-19.

Aspiring to Serve as a Good Corporate Citizen
Semiconductor devices are used in every facet of our lives, from information terminal devices such as
smartphones and personal computers, communications equipment and data centers that process andstore large volumes of information, home appliances including televisions and air conditioners, through toautomobiles, trains and other vehicles. Providing the technological base for such devices, silicon wafers
can also be considered critically important as a key material in maintaining today's standard of living.
At the SUMCO Group, under our philosophy to contribute to the development of industry as well as to the2improvement of people's quality of life through the supply of silicon wafers, we strive to be a good
corporate citizen and engage in CSR activities in accordance with the SUMCO CSR Policy.

Corporate Governance
The SUMCO Group endeavors to maintain fairness, eﬃciency and transparency in its management byfurther enhancing its corporate governance.
In March 2020, SUMCO increased an Independent Outside Director, thereby adopting Board of Directors
structure made up of ﬁve directors who are not Audit and Supervisory Committee Members (one of whom
is an Independent Outside Director) and six directors who are Audit and Supervisory Committee Members(four of whom are Independent Outside Directors). We believe this structure will further enhance ourcorporate governance and audit structure.
As Independent Outside Directors, SUMCO has appointed a person with expert knowledge of humanresource development and organizational operation as well as experience in corporate management, an
attorney, a management consultant who is a certiﬁed public accountant, a person with experience in the
public sector as well as corporate management, and an expert in the ﬁeld of metallic materials research.
Bringing in a great breadth of knowledge and insight derived from the diversity of their backgrounds, theBoard of Directors engages in lively discussion to contribute to the sustained growth of the Company aswell as the enhancement of corporate value over the medium-to-long-term.

Compliance
SUMCO has established and implement the SUMCO Charter, a code of conduct that all oﬃcers andemployees must comply with.
The SUMCO Charter broadly covers various social norms that ought to be followed by companies, such asfair business activities and blocking relationships with anti-social forces, as well as compliance with laws
and regulations.
Similar charters have been established by all companies in the SUMCO Group. Our Group-wide eﬀorts willcontinue to ensure that our corporate activities are sound and in accordance with social norms.

Risk Management
The SUMCO Group has a global market share of approximately 30%. Since the Group supplies highquality silicon wafers to major semiconductor manufacturers around the world, we see the stable supplyof our products as our most critical management challenge and an important social responsibility.
In addition to managing risks to ensure stable supply, SUMCO takes steps to maintain and improve its
business continuity plans across the entire supply chain.

3

Environmental Conservation Eﬀorts
The production of silicon wafers requires a great deal of electricity, water and chemical substances. For
this reason, the SUMCO Group has established environmental targets, and strives to reduce its use ofeach of these as well as the amount of industrial waste generated.
We also ensure the thorough management and handling of harmful chemical substances and waste, andmake every eﬀort to minimize the environmental risks resulting from our business activities.

Health and Productivity Management
Based on a commitment to give top priority to the safety and health of our employees, we view theirhealth as a critical management resource and have reinforced measures for health and productivity
management since 2017.
In March 2020, continuing from last year, SUMCO and six SUMCO Group companies were certiﬁed under
the large enterprise category of the 2020 Certiﬁed Health & Productivity Management Outstanding
Organization Recognition Program (White 500).
The SUMCO Group aspires to promote various CSR activities while endeavoring to fulﬁll its social
responsibilities to the stakeholders who support us by actively reﬂecting their views and wishes, which aregrasped through various types of dialog with stakeholders, in our management activities.
Relationships with Stakeholders
SUMCO endeavors to fulﬁll its responsibilities to stakeholders, who support our business activities.

4

SUMCO Vision

SUMCO Strives to be an Excellent Company through the Combined Power of
All its Employees

1. World's Best in Technology
SUMCO's technological capabilities and abilities to ensure stable supply of
products has earned high praise from customers, and has been oﬃciallyrecognized by many semiconductor manufacturers with excellent supplierawards.
In December 2019, we received the Excellent Performance Award for the sixth
consecutive year from Taiwan Semiconductor Manufacturing Co., Ltd. (TSMC),
the worldʼs largest foundry. We also received the Preferred Quality Supplier(PQS) Award from Intel Corporation, the worldʼs top semiconductor

Excellent Performance

manufacturer.

Award from TSMC

Using this recognition as springboard to an even higher level of success, we willcontinue to promote collaboration with our customers based on long-term commitment and mutual trust
and to improve our technical capability.

2. Deﬁcit-Resistant Even during Economic Downturns
The silicon wafer market is characterized bymajor short-term changes in its businessenvironment. The SUMCO Group has been

Net sales/Operating income/Net income
attributable to owners of the parent
Net sales（consolidated）

Operating income（consolidated）
Net income attributable to ownersof the parent（consolidated）

working to achieve a revenue structure thatavoids deﬁcits even during economic（100 million yen）

downturns, and we are striving to improve

4,000

our earnings.
Through continuous eﬀorts in cost reduction,
quality improvement and productdiﬀerentiation from competitors, we willfurther strive to establish a corporate
structure to ensure higher earnings.

3,000

2,368

（100 million yen）

2,606
2,113

2,000
1,000
0

5

420
294
197
2015

3,250
851
585

2,994

506
331

140
65
2016

1,000

600
400
200

270
2017

800

2018

2019（FY）

0

3. Empower Employee Awareness of Proﬁt
Rather than the chairman, president or executives, it is the employeesthat actually manufactures and sells our silicon wafers. All employees of
the SUMCO Group share the SUMCO Vision, maintain an awareness of
proﬁt and cost, and work to identify and solve issues. To cultivate thisawareness among employees, CEO & Chairman of the Board, Vice
Chairman and COO & President visit each plant frequently to holdmanagement brieﬁngs in order to share the management issues facing

Business conditions brieﬁng

the Group in the current business environment change.

(by Michiharu Takii, Vice Chairman)

We also recognize that without high levels of
employee motivation, we will be unable to realize
the SUMCO Vision of becoming "World's Best inTechnology" and "Deﬁcit-Resistant Even during
Economic Downturns." The SUMCO Group works toboost employee motivation by establishing a variety
of award systems to appropriately recognize andreward employees' eﬀorts and achievements.
Moreover, with the aim of cultivating a workplace inwhich all employees can work comfortably, SUMCO
has been pursuing initiatives to help employees
strike a balance between work and child-rearing. As

Employees of SUMCO Phoenix Corporation

part of these eﬀorts, SUMCO has establishedvarious work styles allowing employees to utilize ﬂexible working hours to reﬂect their childcare
responsibilities, and has set up an in-house nursery school at the Kyushu Factory (Imari), our largest
manufacturing site.

4. Competitiveness in Overseas Markets
In addition to Japan, the SUMCO Group has plants in the United States, Taiwan and Indonesia, as well as
a network of sales oﬃces in various parts of the world, allowing us to supply silicon wafers tosemiconductor manufacturers around the world. Nearly 80% of our sales come from the overseas market
and we are proud to count all of the top 10 global companies in semiconductor sales among thecustomers of the SUMCO Group. The solid and longstanding relationships of trust developed with thesecustomers represent a signiﬁcant advantage to the SUMCO Group, and to further reinforce thisadvantage, we actively cultivate talented global human resources regardless of nationality.

6

Global top 10 companies in semiconductor
sales (2019)

Sales composition by region
Asia
Europe, etc.

（％）

North America
Japan（Unit︓US$ billions）

100

0

20

40

60

80

100

Intel
Samsung

80
59

59

58

58

57

55

58

TSMC

59

SK Hynix60

Micron40200Texas Instruments

11

12

12

12

12

13

12

ST

8

7

8

7

9

8

11

8

7

NXP

22

22

22

23

22

24

22

23

SONY
Inﬁneon

1Q

2Q

3Q

2018 FY

4Q

1Q

2Q

3Q

4Q

* Excludes Fabless, includes Foundry

2019 FY

Created by SUMCO based on various sources and databases

7

The SUMCO Group's Business Activities andthe Sustainable Development Goals (SDGs)
Silicon wafer products from SUMCO are not seen ﬁrst-hand in everyday life, but they are essential to the
manufacturing of the semiconductor devices equipped in all manner of electronic products that enrich ourlives.
To fulﬁll our responsibilities as one of the companies supporting social infrastructure, SUMCO utilizes the
SDGs as indicators of the medium-to-long-term demands of the international community and makes
every eﬀort to realize a sustainable society.

Main Goals of the SDGs and SUMCO's Initiatives

8

Contributing to the SDGs through our products
Contributing to the digital infrastructure supporting ourdaily lives
Silicon wafers that serve as the basic materials for semiconductor
devices used in a wide range of areas including communications
equipment, automobiles, digital appliances, medical equipment
and urban infrastructure
Creating innovation
Silicon wafers that support the miniaturization of semiconductors
to usher in an era of industrial and technical innovation, and theutilization of big data, through IoT, AI and robots

Contributing to reduce traﬃc accidents
Silicon wafers for the automotive semiconductor devices
supporting driver assistance systems such as self-driving andautomatic braking
Contributing to make cities secure and safe
Silicon wafers for security cameras, communication network tools
utilized in smart grid system and various IoT tools

Contributing to improved energy eﬃciency
Silicon wafers for power-saving devices
Contributing to curb greenhouse gas emissions
Silicon wafers for IGBTs which are utilized for electric vehicles(EV) and hybrid vehicles (HV, PHV)

9Contributing to the SDGs through business processes
Promoting eco-friendly corporate activities
Initiatives to combat global warming
Initiatives to reduce waste
Eﬀective utilization of water resources
Participation in local cleaning activities and environmental
conservation initiatives
Publication of an environmental report on the company
websiteSupporting the success of women in the workplace
Establishing an in-house nursery school and improving thechildcare allowance scheme, etc.
Prohibiting discrimination on the basis of gender and clearlystating it in the SUMCO Charter

Promoting a safe and secure working environment
Utilizing and developing a diverse range of human resources
Initiatives aimed at safety, health and hygiene

Promoting compliance and fair business activities
Initiatives to prevent bribery and other forms of corruption
Implementing CSR procurement based on CSR Procurement
Policy in the supply chain

About the SDGs
SDGs, or the Sustainable Development Goals, refer to the goals laid at in "Agenda 2030", which was
adopted at the "United Nations Sustainable Development Summit" in September 2015. The SDGs
comprise 17 goals and 169 targets to be achieved by the year 2030.
The goals and targets of the SDGs comprehensively deal with the various issues faced in the areasof the economy, industry and society. As the central ﬁgures of economic activities, companies are
expected to play a key role as one of the main parties responsible for achieving the SDGs.
* To learn more about the SDGs, check the appropriate sections on the United Nations website,
starting with the "Sustainable Development Goals Knowledge Platform
".

10

C SR
報告
020
書2

GovernanceCorporate Governance ………………………12
Compliance………………………20

Risk Management………………………24

11

Corporate Governance
Why SUMCO Tackles Corporate Governance
SUMCO recognizes that it is a critical management challenge to fulﬁll its mandate from shareholders
by achieving sustainable growth and improving corporate value in the medium-to-long-term, whilebuilding and maintaining positive relationships with other stakeholders. Based on this recognition,
SUMCO pursues a range of measures related to corporate governance, such as reinforcing theauditing and supervisory functions of the Board of Directors, ensuring eﬃciency in how directors
execute their duties and improving internal controls within the SUMCO Group, in order to achieveswift management decision-making and to ensure transparency and fairness in the execution ofbusiness.

Basic Stance on Corporate Governance Structure
SUMCO is organized as a company with an Audit and Supervisory Committee. By adopting thissystem, the eﬀectiveness of supervision and auditing has been enhanced through audits conductedby Directors who are Audit and Supervisory Committee Members and have voting rights at Board of
Directors meetings. In addition, the eﬀectiveness of internal controls has been enhanced throughaudits conducted in cooperation with the Internal Audit Department.

Corporate Governance Structure

General Meeting of Shareholders
Proposal & Report

Appointment &Appointment & Dismissal

Audit report

Appointment &Dismissal

Dismissal

Board of Directors
Directors who are not Audit and Supervisory Committee Members

ReportManagement
Conference

Company-widecommittee
・Business Security
Committee
・BudgetCommittee etc.

Selection,
Dischange,
Supervision[Advisory Committee]
Nomination andCompensation
Committee

Executive Directors
Executive Oﬃcers

Consultation

Internal
audit

Internal
Auditing
Department

Departments
Subsidiaries

Execution of business

12

Report

Audit

Audit and Supervisory
Committee

Accounting
AuditorCollaboration

Assistance

Instruction

Audit and Supervisory
Committee Oﬃce
Collaboration

Collaboration

Accounting audit, Internal controls audit

Board of Directors
SUMCO's Board of Directors comprises internal directors with a proven record of performance in theirrespective areas of responsibility and outstanding management abilities, along with Outside Directors withexpert knowledge and extensive experience, based on the basic stance of the Company to ensure an
overall balance and diversity in knowledge, experience and capabilities of the directors. The Board of
Directors comprises ﬁve directors (except for directors who are Audit & Supervisory Committee Members;
one of whom is an Independent Outside Director) and six directors who are members of the Audit &Supervisory Committee (four of whom are Independent Outside Directors).
In accordance with legal statutes, the Articles of Incorporation and the Rules of the Board of Directors,
the Board of Directors makes decisions on management strategy, management plans, and other suchimportant matters relating to business. It receives reports from every Director on the status of theexecution of duties and it exercises supervision of compliance, internal controls, risk management, andimportant business execution at aﬃliated companies. With the participation of Independent Outside
Directors, the Board of Directors also engages in the free exchange of opinions regarding the appropriate
evaluation of company performance and related matters, and reﬂects that evaluation in the personnel
administration of senior management members.
It is also our basic company policy that matters relating to ﬁnancial results and so on, matters relating tomanagement plans, and the execution of other such important operations should be decided after
adequate discussion by the Board of Directors, including the Independent Outside Directors. For thisreason, the Articles of Incorporation do not stipulate that decisions on the execution of important businesscan be delegated to each Director.
The eﬀectiveness of the Board of Directors is evaluated each year in order to continually enhance theeﬀectiveness of corporate governance.
In ﬁscal year 2019, the Board of Directors met 16 times to discuss important matters concerning
management, address issues identiﬁed in the Board of Directors eﬀectiveness evaluation conducted in theprevious ﬁscal year, and discuss the compensation policy and method for determining compensation of
Directors (except for Directors who are Members of the Audit & Supervisory Committee) and the amountof compensation for individuals.

Directors
As of March 26, 2020
Representative Director(*1)
Chairman of the Board

Mayuki Hashimoto

Representative Director(*1)

Michiharu Takii

Representative Director(*1)

Hisashi Furuya
13

Representative Director(*1)

Kazuo Hiramoto

Director(*2)

Akane Kato

Director,
Full-time Audit and Supervisory

Hiroshi Yoshikawa

Committee member
Director,
Full-time Audit and Supervisory
Committee member
Director(*2),
Audit and Supervisory Committee
memberDirector(*2),
Audit and Supervisory Committee

Atsuro Fujii

Hitoshi Tanaka

Masahiro Mitomi

memberDirector(*2),
Audit and Supervisory Committee
memberShinichiro Ota

Director(*2),
Audit and Supervisory Committee
memberAkio Fuwa(*1) Representative Director(*2) Independent Outside Director

Independent Outside Directors
SUMCO has appointed ﬁve Independent Outside Directors. One is a person with expert knowledge ofhuman resource development and organizational operation as well as experience in corporate
management; one is an attorney; one is a certiﬁed public accountant and management consultant who
has considerable knowledge and experience in ﬁnance and accounting; one is a person with wide
experience and knowledge cultivated through experience in the public sector as well as many years ofexperience in corporate management; and one is a person with knowledge as an expert in the ﬁeld ofmetallic materials research and experience cultivated through years of working as a university professor.
Each Outside director satisﬁes SUMCO's "Criteria of Independence" established in accordance with Tokyo
Stock Exchange standards on the independence of independent directors, and has been veriﬁed to be freeof potential conﬂicts of interest with general shareholders.
In an eﬀort to ensure the sustained growth of the SUMCO Group and increase its corporate value over the
medium-to-long-term, the Independent Outside Directors provide advice on important matters related to
management based on their own individual knowledge and take the perspective of minority shareholders
14and other stakeholders in supervising management. They participate in the appointment of candidates for
Director and other important decision-making by the Board of Directors, and supervise business execution
by the Board of Directors, senior management and others as well as conﬂicts of interest between the
Company and senior management and others.

Audit and Supervisory Committee
The Company's Audit and Supervisory Committee is made up of six directors who are Audit andSupervisory Committee Members (four, a majority, of whom are Independent Outside Directors). In orderto ensure the eﬀectiveness of Audit and Supervisory Committee activities, permanent Audit andSupervisory Committee Members are put in place by mutual voting among Audit and Supervisory
Committee Members. In addition, it is the Company's basic policy to take steps to ensure that at least one
Audit and Supervisory Committee Member has considerable knowledge and experience pertaining toﬁnance and accounting. Currently, this is Mr. Masahiro Mitomi, who is also a certiﬁed public accountant.
Additionally, the Company has established the Audit and Supervisory Committee Oﬃce and assigns staﬀ
to support the activities of the Committee and facilitate the smooth performance of its audit andsupervisory functions.
The Audit and Supervisory Committee exercises its statutory right of investigation and audits the
Directors' execution of their duties from the viewpoints of appropriateness and conformance with laws
and regulations and the Articles of Incorporation by inspecting and conﬁrming the status of compliancewith laws and regulations, Articles of Incorporation, and so on, and by monitoring and otherwise
supervising the development of and operational status of the system of internal controls, including theinternal control of ﬁnancial reporting.

Nomination and Remuneration Committee
In an eﬀort to further enhance its corporate governance, SUMCO has established a Nomination andCompensation Committee composed of two Representative Directors (Directors Mayuki Hashimoto andMichiharu Takii) and two Independent Outside Directors (Directors Hitoshi Tanaka and Masahiro Mitomi) toserve as a discretionary advisory body for the Board of Directors. The Nomination and Compensation
Committee receives requests from the Board of Directors for advice on the process for selection ofcandidate directors of the Company, their qualiﬁcations, the reasons for their designation as candidates,
the structure of remuneration for Directors (excluding Directors who are Audit and Supervisory
Committee Members) and Executive Oﬃcers, and related matters. The committee deliberates on theappropriateness and other aspects of the matter referred and, also taking evaluations of the Companyʼs
performance into account, delivers its advice. The Board of Directors, receiving the ﬁndings of theNomination and Compensation Committee, designates candidate Directors, and decides on the
remuneration for Directors (excluding Directors who are Audit and Supervisory Committee Members) andrelated matters.
15

The Nomination and Compensation Committee convened twice in ﬁscal year 2019, with full attendance
each time. The main activities undertaken by the Nomination and Compensation Committee are as
follows:

Deliberation over the selection of candidate Directors and personnel matters concerning ExecutiveOﬃcersDeliberation over the systems for compensation of Directors (excluding directors who are Audit andSupervisory Committee Members) and Executive Oﬃcers
Deliberation concerning the individual compensation amounts of Directors (excluding Directors who are
Audit and Supervisory Committee Members)

16

Board of Directors/Audit & Supervisory Committee Meetings in Fiscal Year
2019
Board of Directors
NameAudit & Supervisory Committee

Times Attended/
Times Held

Attendance

Name

Mayuki
Hashimoto

16/16

100%

Michiharu
Takii

16/16

100%

15/16

94%

Kazuo
Hiramoto

16/16

100%

Hiroshi
Yoshikawa

16/16

100%

Akio

16/16

100%

Hisashi

16/16

100%

16/16

100%

16/16

100%

3/3

100%

3/3

100%

3/3

100%

HisashiFuruyaHitoshi(*1)

TanakaMasahiro
Mitomi(*1)
Shinichiro
Ota(*1)
Akio
Fuwa(*1)
Fumio
Inoue(*2)
Toshihiro
Awa(*2)
Hisashi
Katahama(*2)

Hiroshi
Yoshikawa
HitoshiTanaka(*1)
Masahiro
Mitomi(*1)
Shinichiro
Ota(*1)

Fuwa(*1)

Katahama(*2)(*1) Independent Outside Director(*2) Retired from the position of Director as of March 28, 201917

Times Attended/
Times Held

Attendance

13/13

100%

13/13

100%

13/13

100%

13/13

100%

13/13

100%

3/3

100%

Executive Remuneration

Matters regarding policy regarding amounts of remuneration and otherpayments to oﬃcers and determination of calculation method
Details of the Remuneration Policy
The Company employs a system where the remuneration of Directors (excluding Directors who are Audit
and Supervisory Committee Members) are determined with a view to encouraging them to contribute to
the improvement of business results and the enhancement of corporate value. Remuneration for the
Directors are within the total amount determined by resolution of the General Meeting of Shareholders,and comprises a ﬁxed remuneration level based on their oﬃce and rank, and a factor linked to theCompanyʼs most recent business results. The Company regularly reviews the remuneration level to reﬂect
the long-term performance. The Company has not adopted a system of using its stock as a payment of
remuneration for Directors, but pursues management that seeks to urge the Directors to contribute to theimprovement of business results and enhancement of the corporate value over the medium- to long-termby encouraging the acquisition and holding of the Companyʼs stocks through the Oﬃcers Shareholding
Association.
SUMCO has judged that it is appropriate to use the semi-annual net-income attributable to owners of theparent as an index for remuneration linked to the Companyʼs business results and ﬁnalizes the amount inaccordance with the calculation method and taking into account the individual assessment.
The results of the index pertaining to results-linked remuneration of Directors (excluding Directors who are
Audit and Supervisory Committee Members) for ﬁscal year 2019 are 22,979 million yen in total for the ﬁrst
and second quarters and 10,133 million yen for the third and fourth quarters.
The Directors who are Audit and Supervisory Committee Members receive only a ﬁxed remuneration fromthe perspective of ensuring the appropriate conduct of their duties such as auditing and the supervision of
the execution of business operations. The remuneration is determined through deliberations of the Audit
and Supervisory Committee Members within the total amount determined by resolution of the General
Meeting of Shareholders, and takes into account the role and duties of each such director and whether heor she is a full-time or part-time member.

Remuneration Determination Process
The amounts of remuneration and other payments to Directors (excluding Directors who are Audit andSupervisory Committee Members) and their calculation methods are discussed by the Nomination andCompensation Committee comprising two representative directors and two independent outside directors
and ﬁnalized with the resolution by the Board of Directors. The Nomination and Compensation Committee,
in response to the consultations by the Board of Directors, discusses the appropriateness of thecompensation structure, etc. of the Companyʼs directors and submits a report to the Board of Directors
also taking into consideration an evaluation of the Companyʼs business results. Upon receiving the reportfrom the Nomination and Compensation Committee, the Board of Directors determines remuneration andother payments to Directors (excluding Directors who are Audit and Supervisory Committee Members).
In ﬁscal year 2019, the Board of Directors meeting held on April 23, 2019, after discussions andconsiderations by the Nomination and Compensation Committee in accordance with the above procedures,
resolved on the policy and determination method of remuneration and other payments to directors asrecommended by the Nomination and Compensation Committee, and the Board of Directors meetings heldon June 28 and December 24 approved the individual amounts taking into consideration the semi-annual
business results.

18

Amount of remuneration in the recent ﬁscal year (disclosure by oﬃcer
category)
Remuneration for Directors for ﬁscal year 2019

Oﬃcer category

NumberofoﬃcersTotal amount of remuneration andotherpayments by type (thousands of yen)Basicremuneration

Results-linked
remuneration

Total amount of
remuneration andother payments(thousands ofyen)

Directors (excluding
Directors who are Audit andSupervisory Committee
Members)

6

253,634

73,800327,434

Directors who are Audit andSupervisory Committee
Members(of which, Outside
Directors)

6(4)

72,780(38,400)(-)

72,780(38,400)

Total(of which, Outside
Directors)

12(4)

326,414(38,400)

73,800(-)

400,214(38,400)(Notes)1. The upper limit of the total remuneration for all directors (excluding Directors who are Audit andSupervisory Committee Members) is 460 million yen annually (excluding employee salary) pursuant to
the resolution at the 17th Ordinary General Meeting of Shareholders held on March 29, 2016.
2. We have received an opinion from the Audit and Supervisory Committee that the remuneration andother payments to Directors (excluding Directors who are Audit and Supervisory Committee Members)
are appropriate in terms of the basic policy on the remuneration system, speciﬁc calculation method,etc., and that its decision process is appropriate as well, as the remuneration and other payments havebeen determined at a meeting of the Board of Directors after being deliberated by the Nomination andCompensation Committee which includes independent outside directors who are Audit and Supervisory
Committee Members as its members.
3. The upper limit of the total remuneration for all Directors who are Audit and Supervisory Committee
Members is 110 million yen annually pursuant to the resolution at the 17th Ordinary General Meetingof Shareholders held on March 29, 2016.
4. As of the end of ﬁscal year 2019, there were four (4) Directors (excluding Directors who are Audit andSupervisory Committee Members) and ﬁve (5) Directors who are Audit and Supervisory Committee
Members.

19

Compliance
Why SUMCO Addresses Compliance
The SUMCO Group recognizes that properly complying with laws, ordinances and expected social
norms are critical to the Company fulﬁlling its social responsibility and essential to the continuous
enhancement of the Company's corporate value. Based on this belief, SUMCO strives to promotecompliance activities.

SUMCO Charter of Corporate Conduct
For the Group's further growth while fulﬁlling its social responsibility, the SUMCO Group has
instituted the SUMCO Charter of Corporate Conduct to deﬁne the norms that the Group's employees
should uphold, not only in terms of compliance with laws and ordinances, but also more broadly interms of CSR in general. The SUMCO Charter of Corporate Conduct is positioned as the highest levelof SUMCO regulations, and is placed above the various in-house regulations and complianceprograms found within the Group.
The SUMCO Group aims to make the SUMCO Charter of Corporate Conduct understood throughout
the Group by preparing it in languages understandable to employees at Group companies overseas,
keeping it available on the corporate intranet at all times, and providing education on the SUMCO
Charter of Corporate Conduct to all employees on a regular basis.
In accordance with the SUMCO Charter of Corporate Conduct, the Company appoints a Chief
Compliance Oﬃcer to embody the highest level of responsibility for compliance. The Chief
Compliance Oﬃcer monitors the status of compliance with the SUMCO Charter of Corporate Conduct
by means of compliance supervisors in each department and Group company, regularly reports
ﬁndings to the Board of Directors, and undergoes review by the Board.
In order to further ensure compliance with laws and ordinances, the Legal Oversight Regulations
appoint departments with primary responsibility for continually overseeing those laws andordinances that are related to the execution of the departments' business. Each responsible
department continuously monitors the enactment, amendment and abolishment of relevant laws
and ordinances, while the auditing department conﬁrms the status of legal compliance throughinternal audits.
In the event a problem related to compliance is discovered, the departments involved act incooperation and under the supervision of the Chief Compliance Oﬃcer to immediately investigate
the cause of the problem and prevent its recurrence.

SUMCO CSR Policy
1. Supported by its cutting edge technology, SUMCO shall steadily provide products andservices with excellent quality, ability and safety, shall win customers' satisfaction andtrust, and shall contribute to the sustainable development of society.

20

2. SUMCO shall produce legitimate proﬁts, grow corporate value, proceed with timely andappropriate disclosure to the public, and aim at returns to its shareholders and investors.
3. SUMCO shall comply with laws and regulations, international rules, and social norms, shall
implement risk management, and shall maintain business continuity.
4. SUMCO shall choose its suppliers by fair and rational standards, establish mutual
conﬁdence, and prosper together.
5. SUMCO shall manage environmental activities, make use of resources and energy
eﬃciently, and control emission.
6. SUMCO shall maintain safe, healthy, comfortable and appropriate workplaces for everybody
working in SUMCO, shall have a high regard for human rights, ability and personality, andshall realize fair and diverse ways of working.
7. SUMCO shall respect various cultures and histories, and shall interact with society and local
communities.

Fair Business Activities / Anti-Corruption
SUMCO is committed to promoting fair business activities and preventing bribery and other forms ofcorruption, and the SUMCO Charter of Corporate Conduct clearly provides for legal compliance, prohibitionof unfair competition and improper transactions, comprehensive anti-corruption measures such as
prohibiting any wrongful provision of proﬁts to public servants and other oﬃcials, and prevention of
insider trading.
To promote fair business practice and prevent corruption in particular, the Regulations on Handling theGrant of Beneﬁts prohibit (1) unlawful political contributions and donations; (2) entertainment or gifts inconnection with the duties of public servants; (3) ﬁnancial beneﬁts in connection with the exercise ofshareholders' rights; (4) excessive entertainment, gifts or other such beneﬁts that exceed commonly
accepted bounds in society; and any unlawful beneﬁts as well as the entire range of transactions that arerecognized as wrongful or improper in light of what is commonly accepted in society. The Regulations alsodeﬁne standards for making donations, providing sponsorship, paying entertainment expenses, giving
celebratory or condolence gifts, paying membership dues to external organizations, and outsourcing
operations and ensure the implementation of them under an appropriate approval process. SUMCO also
requires employees to avoid these behaviors when engaging brokers and other agents.
SUMCO keeps the Regulations on Handling the Grant of Beneﬁts available at all times on the corporate
intranet in order to make it widely known. We also provide training on the SUMCO Charter of Corporate
Conduct to thoroughly familiarize all oﬃcers and employees with it, and the status of compliance withthese provisions is regularly reported to the Chief Compliance Oﬃcer.
During the 2019 ﬁscal year, the SUMCO Group has not paid any ﬁnes or made any facilitation payments
stemming from political contributions or corruption, nor has the Group been penalized in any way relating
to corruption.

21

Internal Reporting System
SUMCO has introduced an internal reporting hotline which is available to all employees for reporting any
act in violation of the SUMCO Charter of Corporate Conduct, including conduct in violation of laws andordinances, human rights infringements and harassment, comprehensive corruptive act such as bribery
and unfair competition, and improper transactions. In addition to an in-house contact point for internalreports, an external contact point (an attorney) has also been provided so that employees can makereports with peace of mind. Anonymous reports are accepted and all disadvantageous treatment including
retaliation against employees who make reports is strictly forbidden.
The Company makes every eﬀort to fully disseminate information about the internal reporting system to
employees. Information on how to use the hotline and about contact points for consultation are posted at
all times on the corporate intranet, and these matters are also explained during training on the SUMCO
Charter of Corporate Conduct which is conducted regularly for all employees.

Export Control
To ensure thorough export control aimed at maintaining international peace and security, SUMCO has
clearly laid out compliance with export control rules in the SUMCO Charter of Corporate Conduct. The
Company has established an appropriate export control system in accordance with the Security Export
Control Rules where it ensures that exports are only executed after the reviews and examinations of all
the requirements to be met, and implemented measures including regular training on export control for
employees.

Renouncing Relationships with Antisocial Forces
The SUMCO Charter of Corporate Conduct declares that the Company denounces any kind of relationshipwith antisocial forces and rejects unreasonable requests or demands from such forces. This is thoroughly
disseminated among all executives and employees of the Company through education and training.

Initiatives on Intellectual Property
As its basic policy, the SUMCO Group attaches importance to intellectual property and utilizes it as a
strategic tool for the Group's business, while at the same time respecting the intellectual property rightsof third parties. Based on this policy, we have set forth rules on how we obtain, maintain and utilize
intellectual property and prevent infringements in the SUMCO Charter of Corporate Conduct andIntellectual Property Regulations, and provide regular education on intellectual property matters to22

employees. We also actively and continually pursue eﬀorts to facilitate the eﬀective utilization of
intellectual property, including an inventor commendation scheme designed to encourage invention andimprove the quality of patent applications. Obtained intellectual property rights are also reviewed
periodically to eliminate obsolete intellectual property so as to keep costs at a reasonable level.

Key Elements of the SUMCO Charter of Corporate Conduct
Based on SUMCO CSR Policy, the SUMCO Charter of Corporate Conduct broadly deﬁnes the norms
that the Company's employees should uphold in terms of CSR in general.
Compliance with laws and ordinances, international rules and social norms
In addition to complying with relevant laws and ordinances in Japan and overseas, the Charterholds SUMCO and its employees to more stringent standards with respect to anti-corruption,
promotion of fair business activities and suchlike. During training on the Charter, we also coverinternational CSR requirements such as the RBA (Responsible Business Alliance) Code of Conduct
and require employees to understand thoroughly.
Respecting human rights and maintaining safe, comfortable and appropriate workplaceenvironments
To cultivate a comfortable and appropriate workplace by advancing safety and health and respect
the human rights in accordance with local labor standards, abilities and individuality of all
employees, we strictly prohibit discrimination on the basis of unreasonable factors including
nationality, race, age, gender and religion and strictly prohibit various forms of harassment.
Information management and intellectual property protection
In light of the fact that information and intellectual property rights represent the source ofcorporate competitiveness, the Charter speciﬁes proper information storage and management aswell as prevention of leakage, and also establishes provisions concerning the utilization of
intellectual property rights while prohibiting conduct that infringes upon the intellectual property
rights of others.
Protecting the environment
The Charter also sets forth provisions on how SUMCO should comply with environmental laws
and ordinances while making every eﬀort to reduce waste and pollutants, and also requires
employees to understand this policy and act with an awareness of environmental conservation ona daily basis.
Improving quality
To improve customer satisfaction and mitigate the risks inherent in product liability, the Charter
requires diligent eﬀorts to maintain and improve the quality of our products and services.

Conﬂict Minerals
We understand that none of tantalum, tin, gold or tungsten is necessary to the functionality or
production of a product manufactured by us, and that thus our product is not subject to the Conﬂict
Mineral regulations under the Dodd-Frank Wall Street Reform and Consumer Protection Act of theUnited States of America established in 2010.
23

Risk Management
Why SUMCO Addresses Risk Management
The Silicon wafer business is a critical industry that supports our IT-oriented society, and the
SUMCO Group is responsible for the stable supply of silicon wafers to semiconductor device
manufacturers around the world. For this reason, the SUMCO Group regards business continuity as
a key management concern.
The Business Security Committee (BSC), which is an organization responsible for company-wide risk
management, identiﬁes, analyzes and assesses risks, implements countermeasures and promotes
risk management activities including the formulation of business continuity plans (BCP), with theaim of predicting risks in advance, preventing them from being realized and minimizing damages
when a risk is realized.

Risk Management Basic Policy
SUMCO has set forth basic matters pertaining to risk management in the Basic Rules on Risk
Management, under which we undertake risk management activities.
Our basic approach to responding to risks involves the following two points.
1. Prioritize the handling of risks by likelihood of occurrence and severity of impact to ensure
optimum allocation of management resources and maximize the eﬀectiveness of measures.
2. Minimize damage and loss by preventing the suspension or discontinuation of business activities
to ensure business continuity in the event of an accident or other emergency situation.

SUMCO's Risk Management Framework

1. Risk Assumptions and Identifying Risk
SUMCO analyzes risks that could impact business continuity for SUMCO's departments, plants, oﬃces, andSUMCO Group companies, identiﬁes the level of impact for each risk, and assigns priority to each risk inaccordance with the Basic Rules on Risk Management mentioned above. Risks which pose a major threat
to business continuity are deﬁned in the Basic Rules on Risk Management.
When taking on a new business as well, we use a same process to analyze business risk and assign
priority.

24

Major Risks Recognized in the Basic Rules on Risk Management
1. Risks Related to General Management
Examples: Contractual disputes, investment in new businesses
2. Risks Related to Accidents and Disasters
Examples: Earthquakes, wind and ﬂood damage, water and electric power service interruptions
3. Risks Related to Discontinuation of Business
Examples: Fire, equipment accidents, production impediments, disruptions to raw material
procurement
4. Risks Related to Compliance
Examples: Antitrust violations, violations of laws related to corruption and anti-corruption,
violations of employment and labor standards-related laws and ordinances, violations ofenvironmental regulations
5. Risks Related to Information
Examples: Leaking of trade secrets, network shutdowns
6. Risks Related to Intellectual Property
Examples: Infringing upon intellectual property rights or suﬀering infringement
7. Risks Related to Human Resources, Employment, and Human Rights
Examples: Labor issues, human rights violations, harassment, occurrence of scandals, crimes
and other incidents
8. Risks Related to Taxation and Accounting
Examples: Funding impediments, rapid exchange rate ﬂuctuations
9. Risks Related to Products and Services
Examples: Quality issues, complaints
10. Risks Related to Safety and Health
Examples: Industrial accidents, outbreak of infectious disease
11. Risks Related to the Environment
Examples: Pollution, environmental accidents
12. Risks Related to Credit
Example: Bankruptcy of a customer

2. Determining Policy with regards to Risk Countermeasures and Reporting
the Status of Such Countermeasures
Responsibility for each risk is allocated between departments according to the priority established in (1)above, and the policy on risk countermeasures is determined via discussion within a company-widecommittee known as the BSC (Business Security Committee). The BSC meets every year, with not only
the Chairman/CEO and other senior management in attendance, but also responsible members of eachdepartment, factory, plant and group companies worldwide. It decides company-wide policy regarding
risk management, deliberates and determines risk prevention measures, discusses responses on crossdepartment risks and new risk phenomenon and exchanges a broad range of information about risk
management in general.
25

BSC's Structure and Objectives

3. Response to Each Risk
Each department, factory, plant, and SUMCO Group company responds to risk in accordance with thepolicy conﬁrmed by the BSC, creates a business continuity plan (BCP; described later) and othernecessary frameworks, and implements training and other regimens designed to improve response inemergency situations. In this way, we strive to prevent risks from manifesting, minimize damage andstrengthen business continuity. The status of risk countermeasures is reported to the BSC mentioned
above each year and reviewed by the senior management.

Ensuring Business Continuity
Our Basic Rules on Risk Management deﬁne business continuity as an important management issue, andwe have been working to develop and improve our BCP (business continuity plan) to ensure business
continuity.
The details of the BCP, and its state of improvements, the results of trainings and drills, and other matters
are reported on the BSC, and the BSC veriﬁes the eﬀectiveness of the BCP, and determines policies on
future action to be taken. Each department and group company improves the BCP further according to
the policies.
In ﬁscal year 2019, we conducted BCP drills to ensure process of Emergency Response Teamestablishment at Kyushu Factory, operation transfer from head oﬃce and initial responses on theassumption of a large-scale earthquake beneath Tokyo Metropolitan area which leads the disfunction ofTokyo Head Oﬃce.
In addition, we also conducted integrated emergency response drills at each plant. The drills included
activities such as evacuation, ﬁreﬁghting, reporting, rescue, emergency relief and transportation, andcontinuous improvements are made by identifying issues and reviewing procedures and other details after
conducting the drills.

26

Integrated Emergency Response Drill

Integrated Emergency Response Drill

Improvement in Emergency Response Capability
The SUMCO Group has established a manual to enable speedy response, ensure employee safety, protect
company assets and restart business operations as soon as possible in the event of a large-scale
earthquake or other disaster/accident. The manual sets out items concerning the preparation of stockpiles
for disaster prevention, the initial response to be taken at each site after a disaster has struck, as well as
the establishment and roles of an Emergency Response Team in the event of an emergency. Additionally,
we regularly conduct initial ﬁreﬁghting drills such as the handling of ﬁre extinguishers and ﬁre hydrants,
and training on the employment of lifesaving measures such as CPR and AED usage, in order to reduce
damage in the event of a disaster. We also conduct exercises such as carrying drills using cloth stretchers
to simulate an evacuation by stairs to further enhance employees' ability to respond in an emergency.
Additionally, at our Kyushu Factory we periodically conduct joint response drills with suppliers that deliver
chemicals to our sites so that all involved can take safe and smooth action in the event of a leakage ofchemicals during delivery.

First Aid Drill

Lifesaving Training

27

Information Management
The Company understands the importance of information in business operations and clearly stipulates theappropriate use and management of trade secrets and all other information in the SUMCO Charter ofCorporate Conduct. We have also established the Rules on Information Management along with related
regulations, guidelines and other materials. We make every eﬀort to appropriately manage and prevent
leaks of trade secrets and conﬁdential information received from customers, suppliers and other parties
by conducting regular information management training for employees on these rules.
In an eﬀort to prevent computer system-related leaks and stop information from leaking outside theCompany, the SUMCO also implements a range of measures to address various risks, such as external
attacks on our computer systems via the internet, the unauthorized use of computer systems and viruses
that target computer systems.
Additionally, SUMCO has established the Rules on Personal Information Management in accordance with
the Act on the Protection of Personal Information to ensure that personal information is managed
appropriately.

Safety Conﬁrmation System
The SUMCO Group has introduced a "Safety Conﬁrmation System" which enables quick conformation of
the safety status of employees working in Japan. We think the system also helps speed up post-disasterrecovery eﬀorts.

Computer System-related Disaster Countermeasures
The Company has ensured redundancy for mission-critical and peripheral systems used on a companywide basis, establishes equivalent backup servers and performs data synchronization in order to continue
business operation even in the event that a server installation location is damaged by a large-scaledisaster such as a major earthquake.

28

C SR
報告
020
書2

Environmental

Environmental Management………… 30

Environmental Load of Business Activities………… 36

Combating Global Warming………… 43

Reduction of Waste………… 46

Effective Use of Water Resources………… 47

Chemical Substance Management………… 49

29

Environmental Management
Why SUMCO Addresses Environmental Issues
From energy-saving initiatives to curbing greenhouse gas emissions and reducing waste, lowering
the environmental load by the business activities of companies is a pressing task to ensure that the
global environment is maintained and protected.
To ensure that the irreplaceable global environment is passed on to future generations, the SUMCO
Group has established an environmental management system. We have obtained ISO14001
certiﬁcation for all of our plants, and pursue initiatives aimed at protecting the environment.

SUMCO Environmental Policies
1. Basic Environmental Philosophy
As a manufacturer of high-quality silicon wafers for semiconductors and of quartz crucibles,
SUMCO has established the following action guidelines and is committed to self-initiated andsustained environmental conservation activities to pass on the Earth's irreplaceable
environment to future generations.

2. Environmental Action Guidelines
1. Through our business activities, we shall pursue activities with an emphasis on thefollowing points.
(1) We shall act to conserve electricity and other energies consumed by our businessactivities, thereby curbing emissions of greenhouse gases.
(2) We shall strive to reduce waste and increase recycling and reuse rates.
(3) We shall strive to reduce and recycle water used in our business activities.
(4) We shall strive to reduce chemical substances used in our business activities.
(5) We shall thoroughly manage the harmful chemical substances and waste, thereby
reducing the risks to the environment.
2. We shall abide by environment-related laws and regulations, bylaws, and other agreed
requirements.
3. We shall strive to prevent environmental pollution in our entire business activities andundertake eﬀorts to protect the global environment and coexist in harmony with local
communities.
4. We shall promote green procurement with our suppliers, thereby reducing environmental
load.
5. We shall deﬁne environmental objectives, and by periodically reviewing these objectives,
shall promote continuous improvement of our environmental management system.
January 1, 202030

Environmental Management Structure
The SUMCO Group has established the Environmental Management Structure in which the Environmental
Management Executive Oﬃcer, a member of the Board of Directors, appoints the Environmental
Management Oﬃcer and the Environmental Managers at site, and deﬁnes their roles, responsibilities andauthorities. Thoroughness of instructions and information sharing are ensured at meetings of thecompany-wide Environmental Management Committee and the Environmental Management Committee at
each site, both of which are convened periodically. SUMCO's Environmental Management Executive Oﬃcer
holds chief responsibility for issues related to climate change and has chief authority regarding thoseissues. The Environmental Management Executive Oﬃcer convenes meetings of the Environmental
Management Committee and monitors SUMCO's eﬀorts to address climate change.
Environmental Management Structure

Environmental Objectives
The SUMCO Group sets environmental objectives for each of its operating bases based on its
Environmental Policies and the results of environmental load assessments that are conducted periodically.
We implement initiatives to reduce environmental load and improve the environment in accordance withthese objectives, such as reducing CO2 emissions, the usage of chemical substances, the generation ofindustrial waste and water consumption. The results of these initiatives are reported at Environmental
Management Committee meetings and reﬂected in plans for the next year. The previous year's
performance serves as the base value for these environmental objectives. Further, we verify our
performance every six months and review the objectives as necessary.

31

2019-2022 Environmental Objectives and 2019 Resu
ResultsBM

2019

Objectives

Objectives

Objectives

0.8%

0.9%

1.2%

1.2%

1.2%

0.6%

1.5%

1.8%

1.8%

1.8%

1.6%

2.7%

2.2%

2.2%

2.2%

0.5%

0.6%

0.4%

0.4%

0.4%

Previous
year'sReduction of industrial waste

2022

Results

Scope1+2

substance use

2021

Objectives

Reduction of CO2 emissions

Reduction of chemical

2020

results

Reduction of water
consumption* BM = Bench Mark
Reduction Objectives for Each Base of Operations (9 Manufacturing Bases in Japan)
2019
Site

BM

Reduction of CO2
emissionsObjectives Results

Kyushu Factory(Nagahama, Imari)
Kyushu Factory(Kubara, Imari)
Kyushu Factory(Saga)
Yonezawa Plant
Chitose Plant
JSQ Division
SUMCO Technology
Corp. Noda Plant

Previous
year's results

Reduction of chemical

Reduction of

Reduction of water

substance use

industrial waste

consumption

Objectives

Results

Objectives Results Objectives Results

0.7%

0.8%

1.0%

3.1%

1.3%

4.8%

0.3%

0.3%

1.0%

1.0%

0.6%

0.8%

0.3%

0.4%

0.4%

0.7%

0.5%

0.6%

0.2%

0.2%

0.3%

0.3%

2.3%

2.3%

0.8%

0.9%

1.4%

1.5%

7.3%

0.3%

2.0%

1.2%

0.1%

0.1%

0.0%

0.0%

1.8%

1.8%

0.7%

0.7%

1.1%

1.8%

0.3%

0.3%

0.1%

7.9%

0.8%

0.8%

1.1%

0.8%

0.4%

5.5%

1.0%

1.1%

0.0%

0.0%

0.8%

1.0%

0.1%

0.1%

3.9%

3.9%

0.2%

0.2%

1.3%

1.4%

0.5%

0.5%

0.1%

0.1%

0.3%

0.3%

0.8%

0.9%

0.6%

1.5%

1.6%

2.7%

0.5%

0.6%

SUMCO TECHXIV
Corp. Nagasaki
Plant
SUMCO TECHXIV
Corp. Miyazaki
Plant
Total

As our eﬀorts for reduction in CO2 emissions, we have reduced electricity usage by upgrading to higheﬃciency coolers at the Yonezawa Plant and Miyazaki Plant and by replacing the lighting equipment at
32

each plant with LED equivalents, among other initiatives.
As our eﬀorts for reduction in use of chemical substances, we have improved wastewater treatment
methods and reduced the amount of chemicals we use at each of our plants. Additionally, with regard
to dewatered sludge, which accounts for a large portion of the Groupʼs discharge of industrial waste,
we have curbed the generation of sludge by reducing the amount of chemicals introduced inwastewater treatment, and implemented thorough operational management of dehydrator equipment
to lower the water content of the dewatered sludge. This has allowed us to lower overall discharge
amounts.
As our eﬀorts for reduction in industrial waste discharge, we have taken various measures such as
lowering moisture content in sludge produced by the Kyushu Factory (Saga) and the Noda Plant, andselling acid waste liquid from the Yonezawa Plant to recycling companies.
As our eﬀorts for reduction in industrial water usage, we have reduced backup water stored by making
changes to the water treatment chemicals used for air conditioning cooling towers at each plant, andby strengthening the management of water quality.

Long-term Goal for Reduction in Greenhouse Gas Emissions
Set in 2019
Objectives year
Long-term Goal

in 2030
CO2 emission per unit (Scope1+2)

14.9% reduction from 2014 (1.0% reduction every year)

Environmental Risk Management
The SUMCO Group identiﬁes environmental risks in the Basic Rules on Risk Management, including risk
related to climate. Identiﬁed risks are incorporated into an initiative plan for environmental risks such asenvironmental pollution and extreme weather due to global warmings under the BSC and environmental
management system. Then, the achievements are reported to the Environmental Management ExecutiveOﬃcer as well as BSC and reviewed by top management.

Environmental Education

Education and Training Targeted at Suppliers to Increase Understanding of
the Environmental Policies and Prevent Environmental Accidents
The SUMCO Group provides environmental education to supplier of chemicals and other products and toindustrial waste treatment ﬁrms covering SUMCO's Environmental Policies, prevention of environmental
accidents and compliance with laws and ordinances.
33

Contents of Education
1. Requests for vehicle inspections to prevent
fuel, oil and other substances from leaking
2. The importance of SUMCO personnel being
present at the time of delivery or collection,and request that their instructions befollowed
3. Request for inspection of industrial waste
collection vehicles, particularly to prevent
leakage or dripping of sludge, liquid waste,etc.

Suppliers receiving environmental education on theprevention of environmental accidents

4. Introduction to actual environmental
accidents that occurred at the Company in the past

Environmental Audits
Through the SUMCO Group, internal environmental audits are conducted by internal auditors, whileenvironmental management system audits are implemented by an outside review organization.

Internal Environmental Audit
Internal environmental audits are annually conducted by internal auditors for all organizations in the
SUMCO Group subject to the Company's environmental management system. The results are reported tothe environmental management executive oﬃcer and reﬂected in the following year's activities to enable
continuous improvement of the environmental management system.

Environmental Management System Audit
The SUMCO Group is subject to regular audits conducted every year and a renewal audit conducted every
three years by an external independent auditor.

34

Compliance with Environmental Legislation
The SUMCO Group identiﬁes the requirements of laws, regulations and agreements and veriﬁes
compliance.
We also ensure compliance with overseas chemical substance regulations, namely the Restriction on
Hazardous Substances (RoHS) Directive and Regulation on Registration, Evaluation, Authorization andRestriction of Chemical Substances (REACH).

Progress of Soil and Groundwater Contamination Countermeasures
In a voluntary survey implemented at theNoda site in 2005, it was found thatamounts of volatile organic compounds(VOC) and ﬂuorine exceeded the soil andAccumulated Amount of Contaminated Substances
Recovered Annually from Groundwater at the Noda
Plant

groundwater environmental standard values.

(kg)
800

We have been pursuing countermeasures in

700

consultation with relevant parties. At

600

present, we are working to prevent the500

spread of and recover contaminated400

substances by using a pumping well set up

300

near the boundary of the plant grounds.
In ﬁscal year 2019, there were no newincidents related to industrial

Fluorine

Trichloroethylene

Tetrachloroethylene

Cis-1, 2-Dichloroethylene

200
100
0

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 (year)

water/wastewater across the SUMCO Group.

35

Environmental Load of Business Activities
The depletion of energy resources, global warming, threats to biodiversity and other environmental
problems are having an increasingly serious impact on the global environment. The SUMCO Groupidentiﬁes forms of energy such as electric power, chemical substances, waste products and wastewater as
signiﬁcant environmental aspects in its production activities and pursues initiatives to make environmental
considerations and reduce the environmental load across all of its business activities.
Business Activities and Environmental Load in 2019 (SUMCO Group [Japan])

Input

Business activities

EnergyProduct development

Electricity

1,356 GWh

(crude oil equivalent)

341,649 KL

Fuel(crude oil equivalent)

6,277 kL

Water

Procurement
・Safe raw materials
・Use of recycled materials

Industrial water

10.0 Mm3

Tap water

0.2 Mm3

Groundwater

3.3 Mm3

990t

CO2 emissions

514 千t-CO2

Breakdown
Electricity*

493 千t-CO2

Fuel

21 千t-CO2

CO2 emissions from transport

Production
・Energy conservation
・Compliance with laws
and ordinances

PRTR-reguleted substances
Amount handled

・Environmental assessment

Output

4千t-CO2

Discharged wastewater
Ocean

5.7 Mm3

・Reduced water consumption

Rivers

3.3 Mm3

・Reduced use of chemical

Sewerage

3.3 Mm3

substances
・Reduced emissions of pollutants
・Reduced amount of waste

Waste
Ordinary business waste
Industrial waste

Transport
・Use of reusable shipping cartons
・Reuse of materials
・Improved transport system

228 t
24,760 t

Specially controlledindustrial waste

2,562 t

PRTR-reguleted substances
Amount released

10t

Amount transferred

383t* CO2 emissions from electricity arecalculated using the CO2 emission
coeﬃcient of each electric power
supplier.

36

List of Boundaries

Site

Energyusage

CO2 emissions
stemming fromenergy usage

Water
used/
wastewaterIndustrial
waste
generated

AtmosVOC

PRTR

phericAbbre-

emissions emissions pollutant

viationemissions

Kyushu Factory(Nagahama,

〇

〇

〇

〇

〇

〇

〇

〇

〇

〇

〇

〇

〇

〇

〇

〇

〇

〇

〇

〇

〇

Yonezawa Plant

〇

〇

〇

〇

—

〇

—

Chitose Plant

〇

〇

〇

〇

〇

〇

—

JSQ Division

〇

〇

〇

〇

—

〇

〇

〇

〇

〇

〇

〇

〇

〇

Imari)
Kyushu Factory(Kubara, Imari)
Kyushu Factory(Saga)

Includes
SUMCO
Group
companies
in Japan

SUMCO

SUMCO TECHXIV
Corp. Nagasaki
Plant

STC

SUMCO TECHXIV
Corp. Miyazaki

〇

〇

〇

〇

〇

〇

〇

〇

〇

〇

〇

—

〇

〇

STEC

〇

〇

〇

〇

—

—

〇

SPX

〇

〇

〇

〇

—

—

—

SPTI

〇

〇

〇

〇

〇

〇

〇

FST

Plant
SUMCO
Technology Corp.
Noda Plant
SUMCO Phoenix
Corporation
SUMCO
Group
Companies
Overseas

PT. SUMCO
Indonesia
FORMOSA SUMCOTECHNOLOGYCORPORATION

37

Environmental Load (Japan)
CO2 emissions (Japan) (thousand tons per year)
SUMCO
750

STC
750
533

520

500

402

250
0

500
250

2017

2018

2019（year）

0

159

156

2017

2018

112
2019（year）

Water consumption (Japan) (million m3 per year)
STC
15.0

SUMCO
15.0
10.0

9.1

9.3

9.7

5.0

5.0
0

10.0

2017

2018

2019（year）

0

3.9

4.1

4.1

2017

2018

2019（year）

Environmental Load (Overseas)

CO2 emissions (overseas) (thousand tons per year)
SPTI
200

FST
200

150

150

100

100

100

50

50

50

0

11

12

12

2017

2018

2019(year)

0

SPX
200
151

2017

151

2018

38

144

2019(year)

150

0

57

56

53

2017

2018

2019(year)

Water consumption (overseas) (million m3 per year)
SPTI
5.0

FST
5.0

2.5

2.5

0

0.4

0.4

0.4

2017

2018

2019(year)

0

SPX
5.0

2.6

2.5

2017

2018

2.5

2.5

2019(year)

0

1.4

1.4

1.3

2017

2018

2019(year)* CO2 emissions of the overseas subsidiaries are calculated using the emission coeﬃcient of each country
based on the Greenhouse Gas Protocol Initiative.

Environmental Data (SUMCO Group)
Greenhouse Gas Emissions Data

(In thousands t-CO2 per year)

5 years prior(2015)

4 years prior(2016)

3 years prior(2017)

2 years prior(2018)

Last year(2019)

Scope 1 (direct)

21

21

23

24

24

Scope 2 (indirect)

990

913

894

877

702

Scope 3 (other indirect)

5

4

4

4

5

Scope 1&2

1,011

934

917

901

726

Scope 1, 2&3

1,015

938

921

905

731

* Only "Category 9: Transport, Delivery (Downstream)" was factored into the Scope 3 calculations
Greenhouse Gas Emissions Data (by Company)(In thousands t-CO2 per year)

5 years prior(2015)

4 years prior(2016)

3 years prior(2017)

2 years prior(2018)

Last year(2019)

SUMCO

599

553

538

525

407

STC

195

169

159

156

112

FST

151

147

152

152

144

SPX

56

55

57

56

53

SPTI

14

14

15

16

15

Total

1,015

938

921

905

731

39

Breakdown of Greenhouse Gas Data (Scope 1)(In thousands t-CO2 per year)

5 years prior(2015)

4 years prior(2016)

3 years prior(2017)

2 years prior(2018)

Last year(2019)

CO2

21

21

23

24

24

CH4

—

—

—

—

—

N2O

—

—

—

—

—

HFC

0.19

0.19

0.19

0.19

0.19

PFC

—

—

—

—

—

SP6

—

—

—

—

—

Other

—

—

—

—

—

5 years prior(2015)

4 years prior(2016)

3 years prior(2017)

2 years prior(2018)

Last year(2019)

Electricity usage (GWh)

1,687

1,698

1,735

1,793

1,707

Electricity (converted topetroleum) (kL)423,325

427,396436,979

451,403429,838

Fuel (converted topetroleum) (kL)

5,934

5,860

6,061

6,233

6,278

Energy Consumption

Water Supplied(Mm3 per year)

5 years prior

4 years prior

3 years prior

2 years prior

Last year(2015)(2016)(2017)(2018)(2019)

12.7

12.2

12.6

13.2

13.5

3.2

3.3

3.5

3.4

3.3

Quarry water

—

—

—

—

—

Potable water

1.1

1.1

1.3

1.3

1.2

External drainage water

—

—

—

—

—

Rainwater

—

—

—

—

—

Seawater

—

—

—

—

—

Surface water (rivers,
wetland, natural lakes)
Water underground(well water)40

5 years prior(2015)

4 years prior(2016)

3 years prior(2017)

2 years prior(2018)

Last year(2019)

17.0

16.6

17.4

17.9

18.0

Total

Water Supplied (by Company)(Mm3 per year)

5 years prior

4 years prior

3 years prior

2 years prior

Last year(2015)(2016)(2017)(2018)(2019)

SUMCO

9.0

9.0

9.2

9.4

9.7

STC

4.1

3.8

3.9

4.1

4.1

FST

2.4

2.3

2.5

2.6

2.5

SPX

1.2

1.2

1.4

1.4

1.3

SPTI

0.3

0.3

0.4

0.4

0.4

Total

17.0

16.6

17.4

17.9

18.0

Drainage Water(Mm3 per year)

5 years prior(2015)

4 years prior(2016)

3 years prior(2017)

2 years prior(2018)

Last year(2019)

Total water drained into
the ocean

7.2

7.1

7.3

7.7

7.8

Total water drained tosurface water sources

—

—

—

—

—

—

—

—

—

—

Total water drained
outside of plants

4.7

4.3

4.8

5.0

5.2

Other drainage water

3.2

3.2

3.4

3.3

3.3

Total drainage water

15.1

14.6

15.5

16.0

16.3

Total water drained tounderground sources/well water sources

41

Drainage Water (by Company)(Mm3 per year)

5 years prior(2015)

4 years prior(2016)

3 years prior(2017)

2 years prior(2018)

Last year(2019)

SUMCO

7.9

8.0

8.1

8.3

8.4

STC

3.6

3.3

3.4

3.7

3.8

FST

2.0

1.9

2.0

2.1

2.1

SPX

1.3

1.2

1.6

1.5

1.6

SPTI

0.3

0.2

0.4

0.4

0.4

Total

15.1

14.6

15.5

16.0

16.3

42

Combating Global Warming
To help prevent global warming, the SUMCO Group identiﬁes both external and internal challenges topreventing climate change based on the Company's business goals/Environmental Policies and the needs
and expectations of related stakeholders. In this way, the Group determines risks and opportunities
related to these external/internal issues and needs/expectations.
Based on these, we resolve and implement year-long initiatives targeting climate change issues that take
into account the risks and opportunities for each department, report the results to the environmental
management executive oﬃcer, evaluate and analyze the results at meetings of the Environmental
Management Committee, and as necessary, revise these risks and opportunities.
To look at a speciﬁc example: For the production of silicon wafer, the SUMCO Group makes every eﬀort tostreamline production and promote rationalization in order to reduce electric power consumption. When it
comes time to update production and utility facilities, we replace them with energy-saving and higheﬃciency alternatives. In oﬃces, lighting is turned oﬀ during lunchtime and other breaks, and air
conditioners are set at a reasonable temperature to save energy.
In Japan, the SUMCO Group takes part in the following initiatives addressing the issues of climate change.
(1) We are part of an industry group (for Japanese electrical and electronics industries) involved in
activities supporting the Keidanrenʼs “Commitment to a Low Carbon Society,” an initiative that lists,publishes and implements activities entities themselves can proactively take on to help create a global low
carbon society.
(2) We have registered with the Environmental Reporting Platform Development Pilot Project of the
Ministry of the Environment. This undertaking encourages the disclosure of environmental informationand dialog among parties including companies and investors. It is contributing toward the creation of asustainable society by helping to ensure that companies actively engaged in environmental activities areproperly recognized for their eﬀorts and gain investor funding support as a result.
In 2018, major investment in CO2 reduction totaled 476 million yen.
CO2 Emissions (SUMCO Group)

CO2 Emissions per Silicon Wafer (sales)（thousand tons-CO2）
1,200

1,008

（kg-CO2/wafer）
50

931

900

913

897

40

723

30

600

Silicon Wafer of 200mm or less in diameter

36.7

20.8

20

300
0

Silicon Wafer of 300mm in diameter

33.1
19.5

28.3

27.5

17.1

16.6

2017

2018

23.8
13.8

10
2015

2016

2017

2018

0

2019(year)

43

2015

2016

2019(year)Cumulative Reduction of CO2 Emissions(SUMCO Group)（thousand tons-CO2）
50

40.1

40

32.5

30

24.7
17.8

20
10
0

2016

2017

2018

2019(year)【Base point : 2015】

Electric Power Consumption(SUMCO Group)

Electric Power Consumption per Silicon Wafer(sales)（GWh）（kWh/wafer）

Silicon Wafer of 300mm in diameter

2,000

100

Silicon Wafer of 200mm or less in diameter

1,687

1,697

1,735

1,793

1,707

80

1,500
1,000

40

500
0

62.6

62.2

35.2

2015

60

56.7

57.5

60.7

35.9

33.2

33.0

31.7

2016

2017

2018

2019(year)

20
2015

2016

2017

2018

0

2019(year)

Investment in Clean Technologies
We have installed 2.3MW of solar power generation equipment at our Kyushu Factory (Kubara, Imari),
and we use and sell renewable energy. Upon replacing production or utility equipment, we also adopt
energy-saving or high-eﬃciency equipment and aim to curtail energy consumption through LED lighting.

44

CO2 Reduction through Modal Shift to Ship Transport in the Field ofLogistics
SUMCO used to rely solely on airfreight for
the transportation of silicon wafers tooverseas markets. However, to reduce both
CO2 emissions and transportation costs, wehave been promoting a modal shift to shiptransport for some of our products since2009, taking into account factors aﬀected bylonger transportation lead time and changes
in the transportation environment. We

CO2 Reduction through Modal Shift to Ship Transport（tons-CO2）
1,118
1,200

1,058
908

900

702

709

2017

2018

600
300
0

conduct tests before switching to ship

2015

2016

2019(year)

transport to conﬁrm that the quality of products is not aﬀected, as well as consulting with customers.

45

Reduction of Waste
In Japan, the SUMCO Group is working to reduce the amount of waste generated as part of environmental
conservation eﬀorts. In particular, to deal with the large volume of sludge generated at our plants, theSUMCO Group is making eﬀorts to optimize the quantity of chemicals injected for wastewater treatment,
and to deal with waste oil, waste acid, waste alkali, waste plastics and other waste, we are focusing on
promoting their recycling and conversion into valuable resources.
Amount of Recycle (SUMCO Group [Japan])Amount of Disposal (SUMCO Group [Japan])(thousand tons)
30

20

50

25
19

Amount of ﬁnal disposal(thousand tons)

21

19

40

21

30

23

23

2015

2016

27

31

28

20

10

10
0

2015

2016

2017

2018

0

2019(year)

2017

2018

2019(year)(Note) * The previous yearʼs ﬁgures for total amount ofrecycling have been corrected.

Waste Reduction through the Adoption of Reusable Containers
We are replacing the containers used to ship 300-mm diameter silicon wafers with reusable alternatives
as one of the initiatives to reduce post-shipment waste.
The percentage of reusable containers used for shipment in 2019 was 63.2%.
Before introducing reusable containers, we conduct tests to ensure that the quality of the products is not
aﬀected.

46

Eﬀective Use of Water Resources
The SUMCO Group recognizes that water is an important resource playing a vital role in manufacturing
silicon wafers. We have set environmental objectives related to reducing water used by our businesses,
and we are working to use water resources eﬀectively at all of our manufacturing bases. At our plants inJapan, we utilize the reject water generated in the water puriﬁcation process as cooling water for utility
facilities and dilution water for wastewater treatment chemicals. We are also working to conserve as
much water as possible for recycling, such as collecting the rinse water used to clean silicon wafers.
The SUMCO Groupʼs water recycling rate hovers at around 40% and was 39.0% in 2019.
Amount of Water Supplied and Discharged(SUMCO Group [Japan])Amount of Water Recycled and Recycling Rate
(SUMCO Group [Japan])（Mm3）

Amount of recycle

10

40.0

9
8

39.9

8.3

Rate of recycle

39.6

8.2

8.1

39.4

39.0

8.5

8.4

（％）
60

40

20

Amount of water dischanged
13.1

12.8

13.1

13.5

13.8

11.5

11.3

11.5

12.0

12.3

2015

2016

2017

2018

2019(year)

12
8

20

4

〜
〜
2015

2016

2017

2018

2019(year)00

Amount of Water Consumption by Water
Source (SUMCO Group [Japan])（Mm3）

Ground water

15

Industrial water
3.2

10

0.2

0.2

3.3

3.4

3.5

3.2

Tap water

0.2

0.2

0.2

9.7

9.4

9.4

9.9

10.3

2015

2016

2017

2018

2019(year)

50

Amount of water supplied

16

7
0

（Mm3）

47

Water-stressed Areas
The SUMCO Group investigates water stress using the AQUEDUCT tools provided by the WRI*1. The
following shows the results of the 2019 investigation.
Operating Base

Includes SUMCO Group
companies in Japan

SUMCO Group Companies
Overseas

Water stress*2

Kyushu Factory (Nagahama, Imari)

2

Kyushu Factory (Kubara, Imari)

2

Kyushu Factory (Saga)

2

Yonezawa Plant

1

Chitose Plant

1

JSQ Division

1

SUMCO TECHXIV Corp. Nagasaki Plant

2

SUMCO TECHXIV Corp. Miyazaki Plant

1

SUMCO Technology Corp. Noda Plant

2

SUMCO Phoenix Corporation

3

PT. SUMCO Indonesia

3

FORMOSA SUMCO TECHNOLOGY CORPORATION

4*1 WRI: The World Resources Institute. A U.S. policy center.
*2 Water stress: Evaluated on a scale of 1-5. The higher the number, the more water-stressed the areais.

48Chemical Substance Management
Amount of PRTR-Regulated Substances
Released and Transferred (SUMCO Group[Japan])The Act on Conﬁrmation, etc. of Release Amountsof Speciﬁc Chemical Substances in the Environment
and Promotion of Improvements to the（t）Management Thereof (Law concerning Pollutant

transfer amount

600

Release and Transfer Register / PRTR Law) requires
businesses to report the amounts of any designatedchemical substances released into the environment

310.1

307.9

2015

2016

300

or transferred.

Release amount

366.7

379.0

393.0

2017

2018

2019(year)

There are 12 substances subject to reporting under
the PRTR Law. The majority of these are substances
contained in cleaning agents and fuels.

0* The ﬁgure for each year shows the amount ofWith regard to the substances subject to reporting

released or transferred substances during thepreceding year from April through March.

under the PRTR Law, the SUMCO Group measures
the amounts of such substances transferred orreleased into the environment based on a stringent management system and issues reports withoutomission.
List of Substances Subject to PRTR Reporting (Class 1 Designated Chemical Substances: 1 ton ormore per year; Speciﬁc Class 1 Designated Chemical Substances: 0.5 tons or more per year)
Period covered: April 2018 to March 2019

Ordi-

Name of Class 1

nance
No.

Designated Chemical
Substance

Amounthandled(t per year)

Amounttransferred

Amount released
Atmosphere

PublicwatersSoil

Landﬁll

Sewerage

Waste

20

2-aminoethanol

15.5

-

0.0

-

-

-

0.0

30

Linear alkylbenzene
sulfonate (LAS)

1.2

-

0.0

-

-

-

-

71

Ferric chloride

6.9

-

-

-

-

-

-

80

Xylene

66.3

0.7

-

-

-

-

1.2

88

Hexavalentchromiumcompound

1.9

-

-

-

-

-

1.7

296

1,2,4Trimethylbenzene

74.4

0.1

-

-

-

-

-

49

Ordi-Name of Class 1

nance
No.

Designated Chemical
Substance

300

Toluene332

374

Arsenic and its
inorganic compound
Hydrogen ﬂuoride
and its water-

AmounthandledAmountAmount releasedtransferred

Atmosphere

PublicwatersSoil

Landﬁll

Sewerage

Waste

9.6

8.6

-

-

-

-

1.0

2.8

-

-

-

-

-

0.1

733.2

0.5

0.0

-

-

0.0

330.1

24.2

-

0.0

-

-

-

2.9

soluble salts
407

Poly (oxyethylene)
alkyl ether

410

Poly (oxyethylene)
nonylphenyl ether

46.0

-

-

-

-

-

46.0

438

Methylnaphthalene

8.1

0.0

-

-

-

-

-

990.2

9.9

0.1

-

-

0.0

383.0

Total

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

50

C SR
報告
020
書2

SocialSpeedy, Accurate and Fair Disclosure………… 52of Corporate Information
The Pursuit of Quality and Reliability………… 54

Supply Chain………… 58

Respect for Human Rights………… 64

Initiatives for Safety and Health………… 71

Support Raising Next-Generation Children………… 78

Social data (personnel)………… 80

Community-based………… 82

Social Contribution Activities

51

Speedy, Accurate and Fair Disclosure of
Corporate Information
Why SUMCO Addresses Information Disclosure
SUMCO makes every eﬀort to enhance management transparency and earn legitimate recognitionof its corporate value from shareholders and investors by releasing information including theCompany's management vision, the status of its business activities and ﬁnancial performance in a
speedy, accurate and fair manner. We also undertake activities to continually improve corporate
value by reﬂecting the feedback received from shareholders and investors in our management.

Basic Policy on Information Disclosure
SUMCO believes timely and appropriate disclosure of corporate information to investors is a coreelement in ensuring a sound stock market. The Company shall commit itself to speedy, accurate andfair disclosure of corporate information while always adopting the perspective of investors.
Corporate information that is useful in investor decision-making shall be actively disclosed evenwhen not mandated by laws and regulations.

Information Disclosure System
The Public Relations & IR Department is responsible for dialogue with shareholders and otherinvestors, under the supervision by executive management, the results of which are reported to theBoard of Directors and executive management as needed. Top management also provides its own
explanations during ﬁnancial results brieﬁngs held quarterly and also takes part in individual
meetings with shareholders and other investors as needed.
When engaged in IR activities, the necessary information is collected from the relevant departments
and coordinated and summarized by the Public Relations & IR Department. The details of IR
activities are also conﬁrmed by top management in advance, with due care in handling insider
information.
Through these activities, SUMCO reﬂects feedback and requests from shareholders and investors inmanagement in an eﬀort to achieve sustained growth and enhance its corporate value in the longterm.

52

Communication with Shareholders and Investors

General Meeting of Shareholders
SUMCO positions General Meeting of Shareholders as the occasion where important decisions on the
Company's policies and other matters are made as well as an opportunity to have dialogues withshareholders.
We are engaged in early dispatch of the notice of convocation, posting on our website and preparation for
the English translation.
We also eﬀort to provide explanations of the details of business report and answer questions asked byshareholders during meetings in as clear a manner as possible by utilizing narrated video footage.

IR Activities
The Timely Disclosure Network (TDnet) of the Tokyo
Stock Exchange is utilized to disclose information thatneeds to be disclosed in a timely fashion, anddocuments are posted both in Japanese and English
simultaneously on our website to ensure the fairdisclosure of information to shareholders andinvestors in Japan and overseas. Our Annual Report
Message to Shareholder

and Message to Shareholders are also published toconvey messages from top management and reporton business performance and conditions.

Annual Report 2018

As well as regularly held meetings with institutional

investors and securities analysts, SUMCO also periodically provides company brieﬁngs to individual
investors and organizes visits to overseas institutional investors in Europe, North America and Asia to help
investors develop a better understanding of the Company.

53

The Pursuit of Quality and Reliability
Why SUMCO Addresses Quality and Reliability
As a company that manufactures silicon wafers that represent the base materials for thesemiconductors installed in all kinds of electronic devices, we see it as a social responsibility of thehighest priority to ensure the safety and reliability of our products while making sure they comply
with all applicable laws, ordinances and regulations.
For this reason, the SUMCO Group makes every eﬀort to implement the stable supply of productsthat meet the quality requirements of customers and further boost customer satisfaction byimplementing quality management in an appropriate and eﬀective manner.

The SUMCO Quality Policy
It is the quality policy of the SUMCO Group to deliver world class quality and reliability throughanticipation of future needs; continuously improving products, processes, technology and service fortotal customer satisfaction.

Quality Control System
In the SUMCO Group, all sites including aﬃliate companies in Japan and overseas have implemented
quality management systems certiﬁed in accordance with IATF16949 and ISO9001 to control quality
through all processes from design and development to production and shipment. We have also built
an internal quality audit system to ensure continuous eﬀorts to further improve product reliability.

The SUMCO Group Mission Statement, Quality Policy and Targets

54

Quality Education
To enhance product reliability and safety, it isnecessary for not only those in charge but also eachworker to have the mindset of a supervisor andimprove their skills.
For this reason, we have developed quality education
programs for each job and level of employee andassigned instructors for each education program toeach production site to provide necessary education
to the human resources that need it wheneverQuality education at one of the SUMCO seminars

required.
In 2019, the SUMCO Group conducted over 300 internal seminars in an eﬀort to enhance the knowledge
and awareness of quality control on the part of employees.

Response to Quality Problems
Flow for Sharing Quality Problems

Should a plant become the subject of a customer
complaint, experience an abnormality or other quality
problem, the plant handles the problem immediately,
investigates the cause and takes measures to prevent
recurrence, in order to minimize the impact on
customers.
When complaints or internal abnormalities occur, weconsider the best known method (BKM) to prevent
recurrences and swiftly deploy a response throughout
the entire SUMCO Group as needed, and build
systems to ensure similar issues do not occur in the
future.

55

Initiatives to Improve Customer Satisfaction

Conducting Customer Satisfaction Surveys
To maintain our "ﬁrst call" status among customers, evaluations received from customers are shared with
relevant departments each time for continuous improvements, and analyzed from four diﬀerent aspects:
quality, cost, delivery and service (QCDS).
The results of analysis are shared among management and other relevant departments, incorporated into
the improvement plans of each department, and used to further enhance customer satisfaction.

Communication with Customers
To further enhance customer satisfaction, we strive to improve the quality of products and services
through two-way communication with customers.
As part of this initiative to promote communication with customers, we proactively hold technicalcommunication meetings both domestically and internationally in order to grasp customer needs
accurately and at an early stage, foster technological development at a rapid pace, and reliably provide
products that match customer needs.
At the technical communication meetings, we make proposals based on our unique technologies, as well
as check and follow up on the performance of our products. We position these technology conferences asopportunities to win recognition and trust from customers. The feedback and demands of customers
learned from the technical communication meetings are utilized for continuous product improvement ofour products and are reﬂected in business plans, such as for formulating technology development
roadmaps that accommodate customers' needs for higher precision and enable product diﬀerentiation. By
doing so, we strive to gain and maintain a strong presence among customers.
Through these SUMCO Group initiatives to promote close communication with customers, we endeavor toprovide the most appropriate information.

56

Flow for Sharing Customer Satisfaction (CS) Evaluation Information

Ensuring the Safety of ProductsManagement of the Chemical Substances Contained in Products
SUMCO ensures that the chemical substances regulated by law or those that customers have asked us toeliminate or reduce the use of are managed properly according to internal rules and standards.

Provision of Safety Data Sheets (SDS)
SUMCO makes available safety data sheets (SDS) based on JIS Z7253 to provide information on therelated hazards of chemical substances used by the Company and to give instructions on how to handle
them safely.

57

Supply Chain
Why SUMCO Addresses the Supply Chain
Year after year, stakeholders have been exhibiting a growing interest in companies' social
responsibility through the supply chain in the course of their business activities.
In light of these growing concerns, the SUMCO Group believes it is important to share CSR-relatedsocietal demands with suppliers and to collaborate with them on issues including human rights,
labor, safety, the environment and ethics in the supply chain.

Procurement Policy
In the procurement of materials, SUMCO strives to engage in fair and rational trade with suppliers
based on mutual trust.
With the cooperation of suppliers, we also actively promote initiatives to fulﬁll our corporate social
responsibilities, including compliance with related laws, ordinances and social norms, and eﬀorts to
support global environmental conservation.
1. Transactions based on partnership
We will develop favorable partnerships with our suppliers based on mutual trust.
2. Fair transactions
We will ensure that our procurement is clean, open and fair.
3. 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 suchproposals.
4. Compliance in procurement activities
We will comply with laws, ordinances and social norms in the course of our procurement
activities.
5. Fulﬁllment of corporate social responsibilities
We will fulﬁll our social responsibilities when conducting procurement activities across our entire
supply chain, including our suppliers.
6. Green procurement
We promote the procurement of materials with minimum environmental impact.

Management System
In addition to procurement departments, the departments at SUMCO responsible for quality
assurance, CSR, environmental management and safety and health coordinate on the selection of
new suppliers, evaluation of existing suppliers, establishment of procurement plans and othersupply chain management eﬀorts. Speciﬁcally, we issue various questionnaire forms (describedlater) and collect the responses, conduct written or on-site audits and due diligences on quality,
CSR and the environment respectively and reﬂect the results obtained from these eﬀorts in ourassessment of suppliers in an eﬀort to develop a more robust supply chain.
58

CSR Procurement Activities

Basic Stance on CSR Procurement
SUMCO has established the SUMCO CSR Procurement Policy and it promotes responsible procurement
activities to fulﬁll its social responsibilities across the supply chain. We share various issues related to the
supply chain with suppliers and tackle procurement activities while keeping those issues in mind to ensurethat customers can use our products conﬁdently and to satisfy our stakeholders.
SUMCO CSR Procurement Policy [95KB/3Pages]
Through periodic brieﬁngs to suppliers and procurement activities such as those described below, werequest our suppliers to make voluntary eﬀorts to promote CSR management.

(1) Brieﬁngs on CSR Procurement
We share the SUMCO CSR Procurement Policy with our suppliers at regularly held brieﬁng sessions, andthrough separate brieﬁng sessions and CSR audits, we explain the SUMCO CSR Procurement Policy,
SUMCO Environmental Policies and RBA (Responsible Business Alliance) Code of Conduct and provide
advice on compliance with these standards. In this way, SUMCO continues to deepen suppliers'
understanding of the Company's labor, safety/health, environment and ethics-focused eﬀorts towards CSR
procurement.

Brieﬁng Sessions for Suppliers
November 12, 2019 - Tokyo (146 people from 107 companies)
November 15, 2019 - Saga (162 people from 112 companies)(2) Supplier Handbook
To help suppliers understand our approach to procurement activities, we distribute Supplier Handbook,which includes a section on our procurement policy and requests to suppliers including items relating to
CSR. The Supplier Handbook is posted on our dedicated procurement website used in SUMCO's daily
procurement activities for easy reference at any time by suppliers.
In this handbook, we ask suppliers that comprise our supply chain to promote CSR. As guideline to befollowed in implementing CSR management, we ask suppliers to utilize the RBA Code of Conduct, and also
encourage subcontractors and sub-subcontractors to implement CSR management in a similar fashion.

59

(3) Green Procurement Guidelines
To promote the procurement of products with a minimal environmental impact (green procurement), we
have also posted Green Procurement Guidelines on the dedicated procurement website. The guidelines
summarize relevant laws and ordinances, the RoHS Directive, REACH regulations, prohibited or controlled
substances designated in customer requests and other pertinent information.

(4) Raw Material Surveys
SUMCO's procurement and environmental management departments work together to promote green
procurement by asking suppliers to submit certiﬁcates of non-use of prohibited substances as well as
issuing and collecting various questionnaires, in order to conﬁrm that substances speciﬁed in the Green
Procurement Guidelines are not being used.

(5) CSR Questionnaires and Audits
We distribute and collect CSR questionnaires based on the RBA Code of Conduct to our main suppliers toreview the status of CSR initiatives at each company. The questionnaires are issued to more than 200
such companies, and SUMCO has managed to secure responses from almost all of them. Based on the
results of these questionnaires, we undertake regular CSR audits that include ﬁeld audits of a given
number of suppliers in order to verify the state of compliance with the items in the CSR questionnaire andconﬁrm the status of improvements.
The 2019 CSR Audit found suppliers who had not conducted training on how to prevent insider trading forseveral years, suppliers who had not adequately managed expiration dates for legally stipulated safety
and environmental qualiﬁcations and suppliers who had failed to secure emergency exits and escaperoutes for employees. SUMCO requested the understanding of suppliers and asked them to correct theseissues, leading suppliers to improve their operations.

Major Items in the CSR Questionnaire
1. Human Rights and Labor(1) Freely chosen employment
Examples: Prohibition of forced and bonded labor(2) No use of child labor
Example: Prohibition on child labor, not having young workers engage in dangerous work
(3) Limitation on Working Hours

Example: Compliance with laws and ordinances on working hours and holidays(4) Lawful Wages
Examples: Compliance with laws and ordinances on minimum wages(5) Humane Treatment
Examples: Respect for human rights, prohibiting harassment and establishing disciplinary
mechanisms(6) Non-Discrimination
Examples: Prohibiting discrimination on the basis of race, nationality, gender, age, sexual60orientation,religion, disabilities or other traits(7) Freedom of Association
2. Safety and Health(1) Occupational Safety
Examples: Obtaining and renewing permits and licenses, providing personal protective
equipment(2) Preparedness for Emergency
Examples: Setting up appropriate emergency evacuation doors and evacuation routes,
conducting drills(3) Prevention of Occupational Injury and Illness
3. Environment(1) Compliance with Environmental Laws and Ordinances
Examples: Obtaining the necessary licenses and other permits, compliance withenvironmental standards(2) Pollution Prevention and Waste Reduction
Examples: Reducing waste and greenhouse gases, controlling wastewater(3) Reduction in Energy Consumption and Greenhouse Gas Emissions
4. Ethics(1) Compliance with Laws
Examples: Prohibiting bribery and corruption, establishing internal reporting systems(2) Fair Business Activities
Examples: Compliance with laws and ordinances on fair trade, competition and advertising(3) Information Management
Examples: Appropriate management of customer information and protection of intellectual
property rights
5. Business Continuity(1) Risk Assessment and Risk Management(2) Business Continuity Plan (BCP)
6. Management Systems(6) Training for Procurement Staﬀ
SUMCO's procurement staﬀ also need sophisticated expertise and a compliance-oriented mindset to
conduct the CSR procurement activities listed above. By training staﬀ about the SUMCO Charter ofCorporate Conduct and providing departments in charge of procurement with regular opportunities totrain themselves regarding laws and regulations, the Company aims to increase employee understanding
and awareness regarding the background and meaning of the SUMCO CSR Procurement Policy, legal
compliance, unfair competition and improper transactions, anti-corruption and respect for human rights.

61

Risk
sk Management within Procur
Procurement Activities
We work to identify the many risks facing the company in its procurement activities, including risk of
instability in procurement of raw materials, risk of corruption, risk of legal violation and risk of use ofcontrolled or prohibited substances. We also evaluate the level of danger posed by each risk, assign
priority to those risks, and implement management measures according to the level of risk. (Refer to thesection titled "Risk Management" for details.)
When selecting new suppliers or evaluating existing suppliers, we conduct risk assessment, asking
suppliers with high-risk items to improve their operations to prevent risks.

Strengthening of Business Continuity Plans for Material Procurement
SUMCO promotes optimum inventory control and multiple sources for procured materials according to thelevel of risk involved.
If a disaster or accident should occur, we will immediately launch an investigation into its impact, while wetake all possible steps for emergency procurement, including ﬁnding alternative suppliers and adopting
alternative products, thus ensuring the necessary framework to do all we can to minimize the impact on
production.

1. Continuing optimum inventory control based on the characteristics of each procured material
We will review inventory quantities, storage sites, transportation methods and other aspects foreach type of material whenever necessary.
2. Source investigation and risk response
We will investigate and conﬁrm production sites and sources of major items and respondaccording to the level of risk involved.
3. Maintenance, enhancement and review of business continuity plan for each item procured

We will develop business continuity plans for each major item so that we can properly respond tothe occurrence of any risk.

4. Risk assessment of suppliers
We will periodically conduct checks on our main suppliers with respect to their ﬁnancial
condition, production systems, business continuity plans and other aspects, and respond
appropriately based on the results.

62

Initiatives to Reduce Environmental Impact
Through the aforementioned CSR questionnaires and CSR audits, SUMCO strives to reduce environmental
impact across the entire supply chain by incorporating items designed to review initiatives aimed at
reducing the amount of waste generated, curbing greenhouse gas emissions and reducing the use ofelectricity, water and energy, and by recognizing suppliers implementing continually concrete reduction
activities by setting numerical targets or taking other measures.

63Respect for Human Rights
Why SUMCO Addresses Human Rights
The SUMCO Group regards respect for basic human rights to be an important social responsibility.
We pursue a number of initiatives to be a company that "values people" and respects the humanrights of all people associated with the SUMCO Group.

Basic Approach
In addressing human rights, the SUMCO Group looks towards international standards such as the
Universal Declaration of Human Rights and the Guiding Principles on Business and Human Rights.
We pledge in the SUMCO CSR Policy to maintain safe, healthy, comfortable and appropriate
workplace for everybody working at SUMCO and to have a high regard for human rights, ability andpersonality, and aspires to realize fair and diverse ways of working. To this end, we strive to createa workplace where employees are motivated to work hard. Based on this policy, SUMCO Group's
Code of Corporate Conduct and various regulations clearly deﬁne rules prohibiting workplaceharassment (bullying or teasing and other conduct in violation of human rights based onillegitimate reasons such as race, religion, gender, nationality, age, sexual orientation, and disability.
In addition to establishing the internal reporting hotline and translating the regulations into various
languages to increase human rights awareness among all employees of the Group, we have alsoestablished human rights violation and harassment consultation services at each Company site.
We not only prohibit child labor, but base our business activities on a clearly deﬁned, written policy
which respects the rights of every child and prohibits forced labor. We provide appropriate wages
according to each country's legally-stipulated minimum wage stipulated in the labor laws of eachcountry, and work to keep working hours within appropriate limits by curtailing excessive overtime
work.
SUMCO develops guidelines based on the above and shares them internally by posting them to theCompany intranet.

Promotion Framework
The SUMCO Group annually convenes the Human Rights Awareness and Promotion Committee, as aframework to promote employee awareness of human rights issues. The committee conﬁrms thepolicies and details of human rights awareness initiatives, while each plant or Group company
implements activities in line with this policy. The activities include invitation of outside experts togive talks and awareness training using audiovisual materials.
In examining new businesses, we look at the laws of the country in question and other possible
human rights/labor risks, and to ensure there is no discrimination based on factors unrelated to thelegitimate interests of the business, we conduct internal training on the aforementioned policies.

64

Major Themes Covered in Human Rights Awareness Training
Respect for diversity
Human rights for the elderly
Workplace harassment
Sexual harassment
Harassment related to pregnancy, childbirth, childcare or nursing care leave in theworkplace
Mental health issues in the workplace

Maintaining and Enhancing a Pleasant Working Environment
SUMCO regularly conducts human rights training including education on various forms of harassment for
all employees, and makes every eﬀort to improve awareness of these issues in the workplace.
In addition, we formulate and implement action plans aimed at improving the working environment at
each workplace by conducting a stress check each year as part of our health management initiatives andadding items related to employee satisfaction to the stress check.
Seeking to eliminate all forms of employment discrimination, we also actively pursue initiatives such asattending lectures held by the U.S. Equal Employment Opportunity Commission (EEOC), as well as ADA(Americans with Disabilities Act) training seminars.
Additionally, as a part of eﬀorts to maintain and enhance a pleasant workplace environment, the SUMCO
Group also conducts various in-house recreation activities and deepens exchanges between employees at
each site to revitalize workplace communication.

Establishment of a Harassment Consultation Service
SUMCO has established a Harassment Consultation Service to serve as the point of contact for employees
to consult about issues related to human rights violations and harassment. To ensure that employees cancasually seek advice at any time, the consultation services are staﬀed by both male and female
consultants who work based on three principles: (1) protecting the privacy of employees seeking
consultation; (2) prohibiting disadvantageous treatment of related persons; and (3) dealing with
consultations in a fair manner. Investigations are launched for each consultation request received, withthe results reported to the management and the party consulting given feedback.
In 2019, the Harassment Consultation Service handled three consultation cases.

65

Harassment Consultation Service System

Human Rights Awareness and Promotion Committee
Chairperson : Executive Oﬃcer, Human Resources
Vice Chair : Director in charge of human resources
Committee Members : Plant Managers, General Managers, select General
Managers from Group companies
Secretariat : General Manager, Human Resources Department
Reports number of consultation
cases and training results

Proposes basic policy,
annual targets, etc.

Each region's General Aﬀairs Sect.
Conﬁrms facts
and presents
solutions

Reports toHarassment Consultation Service

Provides directions on how
to ﬁx the workplaceenvironment

Workplace

Consults and submits
applications to

Employees

Harassment Training
We hold harassment training for management-level staﬀ in each region. In 2019, a total 686 staﬀ
members underwent the training.

Response to Labor Standards Violations
When an administrative directive for a labor standard violation is issued by a governmental authority, theSUMCO Group submits a report on the directive to the upper management and members of the Audit andSupervisory Committee, ensures that corrective action is undertaken throughout the Group, and works toraise awareness of the issue and prevent it from reoccurring. In 2019, we were not issued any suchdirectives or corrective advisories.

Labor-Management Relations
The SUMCO Group grants consideration to and respects the rights of all employees, including employees'
right to freedom of association based on the laws of the countries and regions in which the SUMCO Group66

does business. We also aim to strengthen labor-management relations while respecting employees' rightto assembly and collective bargaining.
Domestically, for example, SUMCO's basic labor-management policy is to solve issues through discussion
for the perpetual development of the Company and improvement of working conditions, based on mutual
understanding and trust. The labor agreement between the Company and the labor union recognizes theunion's right to assembly, collective bargaining, and strike.
Speciﬁcally, high-level labor-management meetings are generally held twice a year with the aim ofpromoting communication between labor and management, and business operations are managed withshared information and challenges.
In addition, at production brieﬁngs and labor-management meetings held once a month at each plant, theplant managers and union representatives meet to exchange information and views concerning the
production situation and other matters.
Meanwhile the Labor-Management Study Committee meets regularly throughout the year to discuss
important labor-management issues such as the improvement of working conditions and review of various
systems from multifaceted, holistic and long-term perspectives, thus allowing labor and management towork closely together to address various issues.

Employee Retention
Only 0.83% of employees resigned during 2019.

Human Resources Development
As declared in the SUMCO Vision, SUMCO aspires to become the "World's Best in Technology." To reachthis goal, diversiﬁed training opportunities are provided to employees at all levels, from new recruits tomanagers and executives. We encourage employees to stay abreast of the changing times, making every
eﬀort to foster the development of human resources who will be able to think and act independently. Each
year, up-and-coming engineers are also given the chance to present their research ﬁndings to senior
management as a means of enhancing their motivation.
In pursuit of "Empower Employee Awareness of Proﬁt," another element to the SUMCO Vision, theSUMCO CEO AWARD was established as the SUMCO Group's highest award, part of a measure to boost
employee awareness of participation. The award is annually presented to individuals and organizations
that have made meaningful contributions to enhancing corporate value. Along with this award, the Groupalso holds presentations by TPM teams annually in order to recognize outstanding success.
Moreover, to achieve "Competitiveness in Overseas Markets" as declared in the SUMCO Vision, we areworking to cultivate an awareness of understanding and respecting a diverse range of cultures and values
within the Group, and are endeavoring to develop globally competitive human resources by enhancing
programs such as study abroad and foreign language learning schemes.
In 2019, a total 29,973 hours of company-wide training was held by departments in charge of humanresources.
67

Engineer Presentation Contest

Engineer Presentation Contest

Utilizing and Developing a Diverse Workforce

Employment of People with Disabilities
The SUMCO Group is actively working toemploy persons with disabilities, as
demonstrated by SUMCO establishing acompany that speciﬁcally hires persons withdisabilities in Japan. In 2019, 1.29% of
SUMCO Group's workforce worldwide was

Employment Ratio of People with Disabilities (SUMCO
Group [Japan])（%）①The statutory emloyment rate for persons
2.5
2.4
2.3
2.2

comprised of persons with disabilities.

2.1
2.0

Looking only at Japan, that number comes

1.9
1.8

to 2.37%.
Moving forward, the SUMCO Group will

employees reach their full potential, as wellas to provide employment opportunities and

2.22
1.99 2.01
1.85 1.81

2.26

2.40 2.40 2.37

①

2.08
②

③ ②The statutory emloyment rate for persons
with disabilities from April 2013
to March 2018 : 2.0%
③The statutory emloyment rate for persons
with disabilities until March 2013 : 1.8%

1.7
〜
〜

continue its eﬀorts to ﬁt the right person to
the right job in order to help individualwith disabilities from April 2018 : 2.2%

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 (FY)* The ﬁgure for each ﬁscal year is the average of theperiod from January to December of the following year.

maintain and improve supportive work environments for people with disabilities.

Employment of Older Workers
We have set up a re-employment system by which employees, if they are well-motivated and wish tocontinue working after mandatory retirement at age 60, can continue working until age 65. This allows
them to continue working while leveraging their extensive experience, sophisticated skills and high-level
abilities.
Additionally, by maintaining the same compensation applied at the time of mandatory retirement evenafter a regular employee is re-employed, the system allows employees to contribute with a strong senseof motivation even after reaching mandatory retirement age.

68

Utilization of Global Talent
The SUMCO Group maintains manufacturing plants in the US, Taiwan and Indonesia, as well as sales
oﬃces around the world. By utilizing local hiring and actively working to hire talented global humanresources regardless of nationality, the SUMCO Group seeks to achieve even further growth as a global
company.
Number of Employees

Number of Employees by Region(full-time equivalents)(Consolidated)

RegularTemporaryemployees(As of Dec. 31,

employees
(2019

2019)

average)

SUMCO

3,981

Region
Japan

412

8,142
Consolidated

Japan

5,869

Overseas

2,273Southeast Asia

341

Total

Managers

Generalemployees

Total(As of Dec.
31, 2019)

Male

754

6,652

7,406

Female

48

688

736

Total

802

7,340

8,142

69

5,869
586

EuropeBreakdown of Employees (Consolidated)(As of Dec. 31, 2019)

North America

East Asia

824

Numbe of employees

1,325
21
8,142

Measures to Help Employees Balance Work and Childcare Responsibilities
To provide employees who are raising children witha more comfortable workplace environment and tohelp them balance work with child-rearing, SUMCO
has established child-care leave periods that are
longer than required by law, along with a diverse
short working hour system. In 2016, the Company
set up SUMCO Nursery School Imari as an in-house
day-care facility at our Kyushu Plant in the Imariarea, the largest site across the SUMCO Group. We
also provide a day-care support allowance at sites
other than the Imari area.

Children of SUMCO Nursery School Imari

Additionally, as a new form of regional contribution, the facility is also a community day-care service
based on the Japanese government's Comprehensive Support System for Children and Childrearing.
Accordingly, a portion of the capacity is made available to local residents who are not SUMCO employees.
PT.SUMCO Indonesia also oﬀers a scholarshipprogram for the children of its employees. Looking
ahead, SUMCO will continue to pursue a variety of
initiatives to put in place a workplace environment inwhich a diverse array of employees can excel while
ensuring a harmonious relationship with the local
community.

Scholarship program event at PT.SUMCO Indonesia

2019 Data

Number of harassment consultation cases

3

Number of participants in harassment training for management-level employees
Resignation rate among permanent employees

686
0.83%

Total hours of company-wide training held by the Human Resources Dept.

Percentage of persons with disabilities employed

70

29,973 hours

Global Total

1.29%

Japan Only

2.37%

Initiatives for Safety and Health
Why SUMCO Addresses Safety and health
The safety and health of employees is essential for them to be able to reach their full potential andwork with vitality. The SUMCO Group sees ensuring the safety and health of its employees as one ofits crucial social responsibilities.
In the SUMCO CSR Policy, the SUMCO Group pledges to "maintain safe, healthy, comfortable andappropriate workplaces for everybody working in SUMCO, shall have a high regard for human rights,
ability and personality, and shall realize fair and diverse ways of working." Based on this, theSUMCO Group promote safety and health initiatives under the following basic principles and policy.

SUMCO Group Basic Policy on Safety and health
Basic Principle
Under the principle that "the safety and health of employees takes the highest priority over
all," the SUMCO Group is committed to "creating a safe and pleasant workplace environment
supportive of good mental and physical health" through leadership by supervisors andthrough active communication across the organization.

Basic Policy
1. We will collectively and thoroughly strive to create a workplace where all members adhere
to relevant laws and regulations as well as rules stipulated in manuals and work
procedures.
2. In the event of any work-related accidents, we will collectively and thoroughly analyze theroot causes and implement measures to prevent their recurrence.
3. We will collectively and thoroughly strive to create an open workplace environment, as wellas to maintain and promote their mental and physical health and to prevent occupational
illnesses.
4. We will collectively and thoroughly engage in raising awareness of traﬃc consideration andpromote traﬃc safety initiatives as models for society.

71Safety and health Initiatives

Promotion Framework
For the purpose of maintaining and enhancing the Group's levels of safety and health, the SUMCO Groupannually convenes the Company-wide Safety and Health Committee in which report on the status ofsafety and health-related initiatives and information sharing are made.
The committee, attended by the Chief Health Oﬃcer and other executives, reports on Group-wide
activities related to safety, health and hygiene management as well as major work-related accidents, andalso reviews and approves safety and health-related issues and targets to be addressed in the following
ﬁscal year.
Additionally, each plant deﬁnes policies and objectives related to safety and health for each ﬁscal year
based on company-wide safety and health issues, and engages in daily activities to achieve thoseobjectives.

Occupational Safety and Health Initiatives
The SUMCO Group has introduced an Occupational Safety and Health Management System (OSHMS)
which is implemented with the aim of achieving zero accident in the workplace.
Under the system, the management deﬁnes a sequence of "Plan - Do - Check - Act" (PDCA) actions tomanage safety and health on a regular and voluntary basis, with the help of employees. This is a safety
and health management framework designed to prevent work-related accidents, advance the health of
employees, promote the formation of a pleasant workplace environment and raise the level of safety andhealth in the workplace.

Major Initiatives to Prevent Work-Related and Traﬃc Accidents
The SUMCO Group conducts annual system audits (internal audits) of all plants in accordance with its
Occupational Safety and Health Management System. SUMCO also endeavors to maintain and enhancesafety management levels by seeking to prevent work-related accidents through promoting voluntary
safety and health initiatives and encouraging the advancement of health and the formation of a pleasant
workplace environment.
Additionally, when workers notice a potential hazard, they are obligated to report on it as a near misscase. Through the case reports and risk assessments, the risk factors at each workplace are identiﬁed. We
try to avert accidents by implementing countermeasures to these risks based on hazard levels, andreducing the degree of risk posed accordingly.
Information on these risks and the corresponding countermeasures are shared across the entire SUMCO
Group through Company-wide meetings attended by the safety and health personnel at each plant, safety
exchange meetings attended by the workplace safety and health promotion personnel at each plant, andsafety and health committee meetings at each plant.
Additionally, through safety patrols conducted at each plant and other regular safety patrols of each plant72

by the Safety and Disaster Prevention Department, labor unions and industrial physicians, we carry out
inspections and other guidance on the state of safety and health management initiatives at the workplaceas part of eﬀorts to attain high levels of safety and health.

Safety and Health Education and Training Initiatives
The SUMCO Group focuses on employee

Accident Frequency Rate*1

education and training with the aim of(frequency rate)

preventing work-related and traﬃc

1.40

accidents. In terms of matters related to

1.20

safety and health, we strive to prevent

1.00

accidents and minimize any damages or

0.80
0.60

injuries caused by accidents. We achieve this0.40

by raising employees' awareness while also

0.20

having them learn about what actions to

0.00

take in the event of an emergency, not only
through tiered safety and health education,
but through workplace safety meetings, risk
prediction training (KYT), the viewing of

0.98

1.05

1.00 0.94

Manufacturing industry average
SUMCO Group (Japan)
1.06 1.06

0.37
0.14

0.27
0.00 0.10

0.00

1.15

0.37

1.20 1.20
1.02

0.25

0.15 0.16

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 (year)* Accident frequency rate = Number of workers killed or
injured in occupational accidents / Total working
hours × 1,000,000

safety-related DVDs and eﬀorts to enhance sensitivity to danger by establishing "safety dojos" to simulatehazards at all of our plants.
Preventing traﬃc accidents is another key challenge, and the SUMCO Group strives to prevent traﬃc
accidents by providing traﬃc accident prevention training along with the viewing of DVDs on traﬃc
accident prevention, and KYT using videos of traﬃc accidents, and by providing driving analysis andguidance based on drive recorders installed in vehicles.

Experiencing a simulated hazard (body parts crushed by or

Experiencing hazards (electric shock, overcurrent, tracking)caught in machinery) at a “safety dojo”

at a “safety dojo”

73Participation in Traﬃc Safety Initiatives
SUMCO's Chitose Plant participates in activities calling for traﬃc safety as part of the traﬃc safety
campaign each spring and autumn. To coincide with the arrival of the tourism season in Hokkaido
accompanied by a sharp increase in the number of rental cars, the employees line up along a road toremind drivers and pedestrians about traﬃc safety.
The Kyushu Plant is engaged in traﬃc safety initiatives as a member of the Shiroishi district's Safe Driving
Supervisors Committee, including annual participation in the "Traﬃc Mirror Cleaning Initiative (March)" formainly local elementary and junior high schools and "Early Headlight Lighting Initiative (November) to
encourage drivers to turn on their headlights before it gets dark.
SUMCO Technology Corporation also promotes safe driving both internally and externally throughparticipation in traﬃc accident prevention campaigns as a member company of the Noda Regional Safe
Driving Supervisors Council, displays awareness-raising posters and conducts activities to encourage safe
driving.

Appealing to drivers to drive safely

Early Headlight Lighting Initiative

Safety and Health/Disaster Prevention Awards Received (in the past ﬁve years)
Year &
month
July 2015

March 2016

Award

Awarded site

Hokkaido Labor Bureau Director's

Chitose Plant, SUMCO Corp.

Commendation
Recognized by the Volunteer Fire Corps
Factory of the Fire and Disaster
Management Agency, Ministry of Internal

Kyushu Factory (Imari), SUMCO Corp.

Aﬀairs and Communications
June 2016

Ministry of Health, Labor and Welfare Class 2
No Accident Record (10.5 million hours)

October

Excellent Safety Operations Facility Bronze

2016

Medal

October
2017

Yamagata Labor Bureau Director'sCommendation

Nagasaki Plant, SUMCO TECHXIV Corp.

Miyazaki Plant, SUMCO TECHXIV Corp.

Yonezawa Plant, SUMCO Corp.

74

Year &
month

Award

Awarded site

October
2017

Letter of Appreciation from Miyazaki Fire
Prevention Committee

December

Letter of Appreciation from Japanese Red

2017

Cross Society (Blood donation)

Miyazaki Plant, SUMCO TECHXIV Corp.

Chitose Plant, SUMCO Corp.

Hazardous Material Safety Awards from
June 2018

Japan Association for Safety of Hazardous
Materials

SUMCO Technology Corp.

September
2018

Commendation as Model Business Site for
Safe Driving Management from the Miyazaki
Prefecture Police Headquarters

Miyazaki Plant, SUMCO TECHXIV Corp.

October
2018

Silver Order of Merit from Japan Red Cross
Society

SUMCO Technology Corp.

February
2019

Ministry of Health, Labour and Welfare Class
3 No Accident Record (15.8 million hours)

Kyushu Factory (Saga), SUMCO Corp.

September
2019

Commendation for Business Operators with
Excellent Traﬃc Safety

Miyazaki Oﬃce, SUMTEC Service Corp.

October
2019

Ministry of Health, Labour and Welfare Class
1 No Accident Record (7.5 million hours)

Kyushu Factory (Kubara), SUMCO
Corp.

Promotion of Health

The SUMCO Group's Approach to Employees' Health
Under the principle that "the safety and health of employees take the highest priority over all," theSUMCO Group strives to create a bright and lively workplace with high job satisfaction and has announced
the "SUMCO Group Health Declaration" both internally and externally.

SUMCO Group Health Declaration
The SUMCO Group considers employee's health to be an important management resource andstrives to be a group in which all employees work energetically by supporting the voluntary healthpromotion by each employee, as well as implementing active organizational initiatives.

75

Health Promotion Framework
The Company-wide Health Committee and

Health-related Meeting Bodies

Health Promotion Meeting are convened
regularly. These bodies report on the status
of initiatives and attainment level of healthobjectives (KPIs) for each site and consider
new measures.
Speciﬁcally, we have established a Health
Promotion Section under the Human
Resources Department while the Executive
Vice President has assumed the position ofChief Health Oﬃcer. Further, under theleadership of the supervising industrial
physician, the industrial physicians, full-time
public health nurses and regular nurses oﬀer
individual health guidance, meetings andsmoking cessation support, as well as conducting initiatives to improve the workplace environment
through stress checks, mental health training and other services.

Speciﬁc Initiatives for Health Promotion
We promote initiatives to maintain and improve thehealth of each employee as a company throughvarious well-planned company-wide initiatives.
To further enhance our health initiatives, in 2018 wesent letters to employees and their families to encourage greater awareness of health issues. Since
maintaining and improving our health is based on regular and voluntary activities at the individual level,
we ask that employees become conscious of health issues and actively engage in various health initiatives
with their families.
In recognition of initiatives aimed at employee health, the SUMCO Group repeated its 2019 performanceand was again certiﬁed under the 2020 Certiﬁed Health & Productivity Management Outstanding
Organizations Recognition Program (White 500) selected by the Ministry of Economy, Trade and Industry
and Nippon Kenko Kaigi.

SUMCO Group Health Management Challenges
SUMCO focuses on the three areas as health management challenges, 1. Mental health, 2. Smoking
cessation and 3. Lifestyle-related diseases. We conduct activities to address these challenges based on a
medium-to-long term plan created to establish quantitative objectives.
Improvements to the workplace environment were started in 2003 as a primary prevention measure for76

mental health. We believe these activities represent an
investment in the workplace environment that allows us torespond to high-level customer requirements, boost productivity
and demonstrate strong work engagement.
The activities operate within our occupational safety and healthmanagement system (OSHMS). In addition to conducting stresschecks as a risk assessment indicator, we carry out assessmentsthat combine multiple indicators including work engagement.
Experts also analyze the results with regard to the relationshipto factors such as presenteeism and consider workplace support approaches as part of an expert panel.
Particularly good examples of workplace initiatives are posted as a collection of good practices on ourinternal website. Over 15 years, SUMCOʼs workplace environment indicators have improved by 15%.

Examples of Speciﬁc Health Management Activities
1. Activities promoting smoking cessation
Blanket ban on smoking in Company buildings (completed in 2018)
Inter-workplace anti-smoking challenge race
On-site health classes (anti-smoking, mental health)
Smoking cessation outpatient services (some business sites)
2. Mental health
Initiatives to improve the workplace environment based on stress check results
Mental health training and consultation framework for counsellors and other staﬀ
3. Measures to address lifestyle-related diseases and other issues
Walking campaign, contracts with sports gyms
Campaigns to encourage all employees to undergo secondary examinations after regular medical
checkups
SUMCO fall prevention gymnastics (during working hours)

77Support Raising Next-Generation Children
to implement the Act on Advancement of Measures to Support Raising Next-Generation Children

SUMCO Action Plan
We have established our Action Plan in a bid to enable employees to perform fully to their ability by
developing child-care support arrangements under which employees with small children balance theirwork and child-rearing and by enhancing comfortable and pleasant working environment for all
employees.

1. Time Period
From April 1, 2019 to March 31, 2024 (ﬁve years)

2. PlanGoal 1
Promotion of understanding of our child-care support system and increase in number of employees
utilizing the system.

Action1. Enhancing our child-care support system by promoting and improving convenience of our intracompany nursery school, etc.
2. Fully disseminating our child-care support system by posting necessary and useful information on our
intranet, etc.
3. Reviewing utilization status of our child-care support system annually, and promoting awarenessbuilding activities to improve utilization ratio.

Goal 2
Continuous review and consideration of various measures for materialization of work-life balance.

Action1. Continuously reviewing and considering eﬀective and practicable measures to materialize work-lifebalance.
78

Goal 3
Overtime reduction and encouragement to take paid leave in a bid to help employees with smallchildren balance their work and child-rearing.

Action1. Maintaining proper overtime management and further improving management awareness of overtime.
2. Reviewing and considering eﬀective measures to increase the rate of taking annual paid leave in
addition to the minimum ﬁve days paid leave per year under the Labor Standard Act.

79

Social Data (personnel)

Number of Employees

item

Employee

Value

Segment

Remarks

Total
workfoce

8,142

Consolidated

As of Dec. 31, 2019

Men

7,406

Consolidated

Women

736

Consolidated

9.0%

Consolidated

Total
Number802

Consolidated

Men

754

Consolidated

Women

48

Consolidated

6.0%

Consolidated

Total
directors

9

SUMCO

Men

9

SUMCO

Women

0

SUMCO

0.0%

SUMCO

Percentageof women
employees

Number ofseniormanagement

Percentageof women inseniorAs of Dec. 31, 2019

management

Number of
directors on
board

Percentageof women
directors on
the board80

As of Dec. 31, 2019

item

Value

Segment

Remarks83

SUMCO

As of 2019

Men

64

SUMCO

Women

19

SUMCO

Percentageof women
employees in
new hires

22.9%

SUMCO

Men

17.3

SUMCO

Women

14.3

SUMCO

3.0 years

SUMCO

Total
Number

Newly Hired
Employees

Average years
employedDiﬀerence inaverage81

Community-based Social Contribution Activities
Why SUMCO Addresses the Local Community
The SUMCO Group sees existing in harmony with the local community and contributing to the region
as one of the corporate social responsibilities.
In SUMCO CSR Policy, the SUMCO Group declares that "SUMCO shall respect various cultures andhistories, and shall interact with society and the local communities." We take into account local
communities' expectations for SUMCO and focus on the following in particular, in an eﬀort to be acompany that can contribute to the local community as a good corporate citizen.
1. Activities aimed at the local environment, safety, and disaster prevention
2. Activities aimed at providing education, culture promotion and sports promotion to the local
community
3. Activities to support persons with disabilities

Participation in Local Cleaning Activities and Environmental Conservation
Initiatives
SUMCO's Chitose Plant implements a clean-up
program on approximately 1.5 km of sidewalks
along the main roads of the Chitose Industrial
Complex where the plant is located. Plant members
pick up empty cans and trash that have been
discarded, as well as fallen leaves and other refuse.
Last year, in a rare occurrence, Hokkaido was hit bya typhoon, and the road surface was covered infallen leaves, but we will continue to implement
timely clean-up eﬀorts so that pedestrians can walk

Clean-up activities on the grounds

on the roads in comfort.

of the Chitose Industrial Complex

SUMCO's JSQ Division participates annually in the
Omono River Basin Joint Clean-up organized by Akita City with the participation of local residents andnearby companies.
SUMCO's Yonezawa Plant actively engages in various local environmental activities as a member of theHachimanpara Corporate Council made up of companies located in the Hachimanpara Industrial Park. The
activities include planting seasonal ﬂowers in median strips of roads inside the park and cleaning up areas
along major roads.

82

AT the Nagasaki Plant of SUMCO TECHXIV Corporation, many employees and their families participate
each year in the cleanup of the Omura Bay coastal area organized by the Omura Bay Cleanup Project.

Maintaining ﬂower beds along median strips

Omura Bay coastal area joint clean-up

2019 international cleaning up activities in Taiwan

2019 international cleaning up activities in Taiwan

Each year, the Miyazaki Plant of SUMCO TECHXIV Corporation also works with nearby companies in a local
cleanup initiative called the "Kiyotake-cho KINRIN Clean Activity," and also works on an environmental
conservation project for the Kiyotake River in association with local groups.
SUMCO Technology Corporation participates annually in the Edogawa Clean Campaign organized by the
Edogawa River Oﬃce and local municipalities near Noda City, collecting discarded cans and bottles, etc.
and performing cleanup activities on the riverbed, embankments and side ditches along the Edogawa
River. Additionally, the company conducts a cleanup campaign through the plant grounds and along
nearby public roads and sidewalks every two months to keep the areas inside the industrial park clean.

Greening Initiatives
At the Chitose Plant, we work on beautiﬁcation of the surrounding environment. In June, after the snow
season, we enter the "Flower-Filled Contest" hosted by Chitose City's greening promotion foundation(Chitose Environment and Greenery Foundation) and plant colorful ﬂowers such as marigolds and scarlet
sages in the green belt on roads around the plant. At the Noda Operation Department of SUMCO Support
Corporation*, we conduct "Flower Project" initiatives including the voluntary creation of ﬂower beds and83

planting of seeds and seedlings, thereby delighting
visitors to the Noda area and employees alike.
* SUMCO Support Corporation is a special
subsidiary company of SUMCO that wasestablished with the purpose of employing
persons with disabilities.

Greening promotion activities at the Chitose Plant

Support for a Vocational Facility for People with Disabilities
At the Yonezawa Plant, we collect empty plastic bottles and cans from the plant and employees' homes
and provide them via recycling operators to vocational facilities for persons with disabilities to support
their employment. Using the money received from the recycling ﬁrm for the sale of such bottles and cans,the plant also periodically purchases useful items and donates to the facility.

Participation in Emergency Drills at Welfare Institutions
At the Nagasaki Plant of SUMCO TECHXIV
Corporation, we have organized an external rescue
team, and joint rescue drills under the guidance ofmembers of the Omura Fire Department are
conducted every year to prepare the team for ﬁredisasters at nearby welfare institutions.

Emergency drill at a welfare institution

Interaction with local educational institutions
At the Nagasaki Plant of SUMCO TECHXIV Corporation, we have maintained a relationship with local highschools since the establishment of the plant. Every year, we host study tours to inspect the production
process or the extra high voltage monitoring room for the power intake facility, as well as providing
internships. Responding to requests from local high schools, we also send employees to give lectures on
semiconductors.
Each year, PT. SUMCO Indonesia works with local high schools, universities and graduate colleges to84

operate apprenticeship programs that run from 12 to
24 weeks, giving students the opportunity to develop
their future careers.

Dispatching employee instructors to local high schools

Scene from the apprenticeship program

Scene from the apprenticeship program

Participation and Sponsorship of Sports Events
SUMCO participates in and sponsors local sports events. The SUMCO Kyushu
Factory co-sponsors the IMARI HALF-MARATHON every year. In 2020, morethan 3800 participants from around Japan attended the competition and ran
through the city in the early spring weather.
On January 26, 2020, the SUMCO Imari Road Relay Race Team ﬁelded by
the Kyushu Factory took part in the 73rd Tozai Matsuura Relay Race
Competition (sponsored by Saga Shimbun) and won its 14th championshipoverall and third consecutive victory while also breaking the competition
record. The event has a long tradition, attracts many regional and companyaﬃliated teams, and contributes to revitalization of the region.
The SUMCO TECHXIV Corp. Nagasaki Plant sponsored Omura Bay ZEKKEIRide 2019. The event is a cycling race that makes a circuit of Omura Bay andis jointly hosted by municipalities located around the bay. The race attracts
cycling enthusiasts from around Japan who come in search of the areaʼs
beautiful scenery.

85

The 72nd Tozai Matsuura
Relay Race Competition(courtesy Saga Shimbun)

Activities with Non-Proﬁt Organizations
In 2019, SUMCO donated 300,000 yen to Seacare and the Japan Heart Foundation, in support of thework done by these NPOs.
Additionally, SUMCO Europe Sales Plc took part in Warm-up London, an activity to collect donations ofclothing that is no longer needed and provide it to homeless shelters, refugee centers, youth support
centers and so on. The activities included distributing ﬂyers and sorting the collected clothes.

Scenes of Warm-up London activities.

Scenes of Warm-up London activities.

Participation in Local Events
Each year at the Uesugi Snow Lantern Festival, a famous winter festival that takes place in Yonezawa,
SUMCO's Yonezawa Plant produces snow lanterns, a winter tradition in Yonezawa, in an eﬀort to vitalize
the local area.
In order to bring excitement to local events as a company that has established business sites in Imari
City, SUMCO's Kyushu Factory participates in the Imari Autumn Festival - Imari Dance in All as a means ofcontributing to local revitalization.
Additionally, SUMCO's JSQ Division supports activities of the "Barajima Kanto Group," which is located in
Barajima, Akita and headed by a SUMCO Employee. The group participates by performing in the Akita
Kanto Festival every year, where they put on energetic performances.
* The "Kanto Myogikai" is a pole lantern performance contest that takes place during the day as part of
the Akita Kanto Festival, with the objective of preserving skills in lantern balancing and its musicalaccompaniment. Pole lantern performances during the night are called "Yoru Kanto."

86Participates in an annual event, the "Imari Autumn Festival–

Performance for the JSQ Division

Imari Dance in All"87

Site Data (2019 results)
2019 data on the acquisition status of ISO 14001 certiﬁcation for the SUMCO Group's businesssites/plants and regulated substances discharged from each site/plant to the surrounding air and water.

Kyushu Factory (Nagahama)/Kyushu Factory (Kubara)/Kyushu Factory(Saga)

Kyushu Factory

Kyushu Factory

Kyushu Factory(Nagahama)(Kubara)(Saga)

Design,development and

Design,development andmanufacture of

Design,development andmanufacture ofmanufacture ofsilicon wafers

monocrystalline
silicon ingots andsilicon wafers

monocrystalline
silicon ingots andsilicon wafers

Examiningorganization

Japan Quality
Assurance
Organization

Japan Quality
Assurance
Organization

Japan Quality
Assurance
Organization

Date ofacquisition

January 11, 1999

January 11, 1999

January 11, 1999

Date ofrenewalJanuary 11, 2023

January 11, 2023

January 11, 2023

Name of business site/plant

Scope of business

Status ofacquisition of ISO
14001:2015
certiﬁcation

Air
Nitrogen oxides

Measurement results (regulation value)ppm

Boiler 85 (150)

Boiler 49 (150)

Boiler 72 (110)

Sulfur oxides (SOx)m3N/hBoiler ND (0.440.85)

Boiler ND (1.15)/

Soot and dust

g/m3N

/

/

Boiler ND (0.001)

(NOx)

88

Regulation
value

Water

BiologicaloxygenMeasurement
resultRegulation
value

Measurement
resultRegulation
value

Measurement
result

mg/ℓ

/

/

/

/

10

7

mg/ℓ

30

13

30

8

/

/

mg/ℓ

30

12

30

8

25

5

N-hexaneextract

mg/ℓ

5

ND

5

ND

3

ND

Iodineconsumption

mg/ℓ

/

/

/

/

/

/

Fluorine andits
compounds

mg/ℓ

8

5.1

8

2.7

3

0.9

Ammoniac
nitrogenmg/ℓ

Nitratenitrogen

mg/ℓ

80

18

80

24

100

12

Nitritenitrogen

mg/ℓ

mg/ℓ

120

39

120

30

60

15

mg/ℓ

0.2

ND

0.2

ND

0.2

ND

content (TP)

mg/ℓ

12

0.3

12

0.1

8

1.0

Arsenic

mg/ℓ

0.05

ND

0.05

ND

0.1

ND

Trichloroethylene

mg/ℓ

0.1

ND

0.1

ND

0.1

ND

demand(BOD*1)
Chemical
oxygendemand(COD*2)
Suspended
solids (SS)

Nitrogencontent (TN)
Chromium
content (TCr)
Phosphorus89

*1 In case of discharging treated wastewater into the river, the drainage restriction of biological oxygen
demand (BOD) applies.
*2 In case of discharging treated wastewater into the sea, the drainage restriction of chemical oxygen
demand (COD) applies.
*

Numbers list the maximum annual ﬁgures.
"/" denotes non-applicability"-" denotes an unmeasured item as the regulated substance is not used.
"ND" denotes non-detection

Noda Oﬃce/Yonezawa Plant

Name of business site/plant

Scope of businessNoda Oﬃce

Yonezawa Plant

Manufacture of silicon wafers

Design, development andmanufacture of monocrystalline
silicon ingots

Status ofacquisition of ISO
14001:2015
certiﬁcation

Examiningorganization

Japan Quality Assurance
Organization

Japan Quality Assurance
Organization

Date ofacquisition

January 11, 1999

January 11, 1999

Date ofrenewalJanuary 11, 2023

January 11, 2023

Air

Measurement results (regulation value)

Nitrogen oxides
(NOx)

ppm

Boiler 73 (260)/

Sulfur oxides (SOx)m3N/hBoiler 0.03 (0.32)/

Soot and dust

g/m3N

Boiler 0.0 (0.3)/

Regulation

Measurement

Regulation

Measurement

value

resultvalue

result

mg/ℓ

25

15

600

21

mg/ℓ

20*1

17

/

/

mg/ℓ

50

10

600

31

Water
Biological oxygen
demand (BOD)
Chemical oxygen
demand (COD)
Suspended solids
(SS)

90

WaterRegulation

Measurement

Regulation

Measurement

value

resultvalue

resultN-hexane extract

mg/ℓ

3

ND

5

ND

Iodine consumption

mg/ℓ

/

/

220

8

mg/ℓ

8

4.4

8*2

2.4

100

9

380

192

mg/ℓ

30

22

/

/

Chromium content(T-Cr)

mg/ℓ

1

ND

0.5

ND

Phosphorus content
(T-P)

mg/ℓ

2

0.2

/

/

Arsenic

mg/ℓ

0.05

ND

0.1

ND

Trichloroethylene

mg/ℓ

0.1

ND

/

/

Fluorine and its
compounds
Ammoniac nitrogen

mg/ℓ

Nitrate nitrogen

mg/ℓ

Nitrite-nitrogen

mg/ℓ

Nitrogen content (TN)*1 At the Noda oﬃce, since Tokyo Bay pollutant load restrictions apply, it is also subject to chemical
oxygen demand (COD) restrictions.
*2 At the Yonezawa Plant, treated wastewater is discharged into public sewerage systems and is thus
subject to the Sewerage Act. (Destination of treated waste water outﬂowing from seweragetreatment site: river) Accordingly, the regulation value for ﬂuoridation compound is 8 mg/ℓ.

91

Chitose Plant/JSQ Division

Name of business site/plant

Chitose Plant

JSQ Division

Design, development and

Design, development andmanufacture of silicon wafers

manufacture of quartz crucibles

Examiningorganization

Japan Quality Assurance
Organization

Japan Quality Assurance
Organization

Date ofacquisition

January 11, 1999

January 11, 1999

January 11, 2023

January 11, 2023

Scope of business

Status ofacquisition of ISO
14001:2015
certiﬁcation

Date ofrenewalAir

Measurement results (regulation value)

Nitrogen oxides
(NOx)

ppm

/

/

Sulfur oxides (SOx)

m3N/h

/

/

Soot and dust

g/m3N

/

Firing furnace 0.17 (0.2)

Water

Regulation
value

Measurement
resultRegulation
value

Measurement
resultBiological oxygen
demand (BOD)

mg/ℓ

600

2

160

18

Chemical oxygen
demand (COD)

mg/ℓ

/

/

/

/

Suspended solids
(SS)

mg/ℓ

600

18

200

33

N-hexane extract

mg/ℓ

5

1

5

ND

Iodine consumption

mg/ℓ

/

/

/

/

Fluorine and its
compounds

mg/ℓ

8*

3.7

8

0.3

Ammoniac nitrogen

mg/ℓ

Nitrate nitrogen

mg/ℓ

/

/

100

3

Nitrite-nitrogen

mg/ℓ
92

WaterRegulation

Measurement

Regulation

Measurement

value

resultvalue

resultNitrogen content (TN)

mg/ℓ

/

/

120

5

Chromium content(T-Cr)

mg/ℓ

2

ND

2

ND

mg/ℓ

/

/

16

0.2

Arsenic

mg/ℓ

/

/

0.1

ND

Trichloroethylene

mg/ℓ

/

/

0.1

ND

Phosphorus content(T-P)* At the Chitose Plant, treated wastewater is discharged into public sewerage systems and is thus subject
to the Sewerage Act. (Destination of treated wastewater out ﬂowing from sewerage treatment site:
river) Accordingly, the regulation value for ﬂuoridation compound is 8 mg/ℓ.

SUMCO TECHXIV Corporation Nagasaki Plant/SUMCO TECHXIV Corporation
Miyazaki Plant

SUMCO TECHXIV Corporation(STC) Nagasaki Plant

SUMCO TECHXIV Corporation(STC) Miyazaki Plant

Design, development andmanufacture of monocrystalline
silicon ingots and silicon wafers

Design, development andmanufacture of monocrystalline
silicon ingots and silicon wafers

Examining

Japan Quality Assurance

Japan Quality Assuranceorganization

Organization

Organization

Date ofacquisition

January 11, 1999

January 11, 1999

Date ofrenewalJanuary 11, 2023

January 11, 2023

Name of business site/plant

Scope of business

Status ofacquisition of ISO
14001:2015
certiﬁcation

Air

Measurement results (regulation value)

Nitrogen oxides
(NOx)

ppm

Boiler 69 (260)

Boiler 81 (150)

Sulfur oxides (SOx)m3N/hBoiler ND (1.43-2.41)/

Soot and dust

g/m3N

Boiler ND (0.3)

Boiler ND (0.1)*2

93

Regulation

Measurement

Regulation

Measurement

value

resultvalue

result

mg/ℓ

600

60

25

4

Chemical oxygen
demand (COD)

mg/ℓ

/

/

/

/

Suspended solids
(SS)

mg/ℓ

600

32

30

3

N-hexane extract

mg/ℓ

5

ND

5

ND

Iodine consumption

mg/ℓ

/

/

/

/

Fluorine and its
compounds

mg/ℓ

15*1

8.0

8

1.7

Ammoniac nitrogen

mg/ℓ

Nitrate nitrogen

mg/ℓ

380

35

100

11

Nitrite-nitrogen

mg/ℓ

Nitrogen content (TN)

mg/ℓ

240

79

120

5

Chromium content(T-Cr)

mg/ℓ

2

ND

0.2

ND

Phosphorus content
(T-P)

mg/ℓ

32

0.3

16

0.0

Arsenic

mg/ℓ

0.1

0.002

/

/

Trichloroethylene

mg/ℓ

0.1

ND

/

/

Water
Biological oxygen
demand (BOD)*1 At STC Nagasaki plant, treated wastewater is discharged into public sewerage systems and is thus
subject to the Sewerage Act. (Destination of treated wastewater outﬂowing from sewerage treatment
site: the sea) Accordingly, the regulation value for ﬂuoridation compound is 15 mg/ℓ.
*2 The frequency of atmospheric soot and dust measurements at STC Miyazaki was revised to once every
ﬁve years (the next measurement will be taken in 2023).

94

SUMCO Phoenix Corpo
Corporation Albuquerque Plant/SUMCO
SUMCO Phoenix
Corporation Phoenix Plant
Corpo

Name of business site/plant

Scope of business

SUMCO Phoenix Corpo
Corporation

SUMCO Phoenix Corpo
Corporation(SPX) Albuquerque Plant(SPX) Phoenix Plant

Design, development and

Design, development andmanufacture of monocrystalline

manufacture of silicon wafers
Examining

DNV

DNV

Date ofacquisition

June 19, 2000

June 19, 2000

Date ofrenewalJune 30, 2021

June 30, 2021

organization

Status ofacquisition of ISO
14001:2015
certiﬁcation

silicon ingots and silicon wafers

Air

Measurement results (regulation value)

Nitrogen oxides
(NOx)

ton/y

1.3 (10.2)

12.2 (24.6)

Sulfur oxides (SOx)ton/y0.01 (0.34)

0.19 (1.25)

PM10 (Particulate
Matter)ton/y0.09 (0.84)

0.7 (2.5)

Regulation

Measurement

Regulation

Measurement

value

result*value

result

mg/ℓ

/

/

/

/

Chemical oxygen
demand (COD)

mg/ℓ

/

/

/

/

Arsenic

mg/ℓ

2.09

/

0.13

0.01

Cadmium

mg/ℓ

/

/

0.047

0.002

Copper

mg/ℓ

/

/

1.5

0.0

Cyanide

mg/ℓ

0.5

/

2

0.0

Fluorine and its
compounds

mg/ℓ

36

/

/

/

Water
Biological oxygen
demand (BOD)95

Regulation

Water

value

Measurement

Regulation

Measurement

resultvalue

result

*

Lead

mg/ℓ

1.0

/

0.41

0.01

Mercury

mg/ℓ

0.004

/

0.00230.0002

Molybdenum

mg/ℓ

2.0

/

/

/

Selenium

mg/ℓ

0.46

/

0.1

0.01

Silver

mg/ℓ

5.0

/

1.2

0.0

Zinc

mg/ℓ

2.2

/

3.5

0.1

Suspended solids
(SS)

mg/ℓ

/

/

/

/

* At the Albuquerque Plant, only pH and water ﬂow rate measurements are required, and the City of
Albuquerque periodically takes wastewater measurements.

96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