SUMCO

SUMCO Corporation CSR Report

2016

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

Message from the Management
SUMCO enhances its corporate
governance in order to remaina corporation with sustained growth
In the Ordinary General Meeting of Shareholders held on March 29,

As a company aspiring to contribute to society and maintain

2016, SUMCO received the shareholders’ approval to amend thesustainable growth, the SUMCO Group works on the following

Articles of Incorporation, and shifted from a Company with a Board

issues.

of Corporate Auditors to a Company with Audit and Supervisory

S U M CO Vi son

1. World’s Best in Technology
2. Deficit-Resistant Even during 		
Economic Downturns
3. Empower Employee
Awareness of Profit
4. Competitiveness in Overseas
Markets

Commitee. The system is now in place whereby certain Directors

Corporate governance and compliancebelonging also to the Audit and Supervisory Committee Members,

The SUMCO Group endeavors to maintain efficiency, transparency,with voting rights on the Board of Directors audit and supervise theand fairness in its management by further enhancing its corporate

business executed by Directors. We expect this to enhance thegovernance. We also established and implemented the SUMCO

effectiveness of audit and supervision.

Charter as a code of conduct which officers and employees shall

The SUMCO Board of Directors is made up of eight Directors

comply with, and we ensure that our corporate activities are sound(including two Directors who do not execute operations, andand in accordance with social norms, as well as complying with

excluding Directors who are Audit and Supervisory Committee

laws and regulations.

Members) and six Directors who are Audit and Supervisory
Committee Members (of whom four are Independent Outside

Risk management

Directors). We expect that increasing Independent Outside

The SUMCO Group’s global market share is about 30%,

Directors will make it possible for the Board of Directors to engage

meaning that our silicon wafers are used in one in every three

in discussion supported by a greater breadth of knowledge andto four electronic devices around the world. The stable supply

insight and in respective with a greater variety, including theof products is therefore our most critical management challenge

viewpoints of our stakeholders. This will vitalize the Board ofand an important social responsibility. To ensure stable supply,

Directors and enhance the transparency of management.

we are taking various measures to prevent the materialization of

In conjunction with the transition to a Company with Audit
and Supervisory Committee, we have established a Nomination

risks while working to further develop and improve our business
continuity plan, which also covers our supply chain.

and Compensation Committee with membership composed
primarily of Independent Outside Directors to serve as a

Environmental conservation

discretionary advisory body for the Board of Directors. This step is

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

intended to further heighten the transparency and objectivity of theand chemical substances. The SUMCO Group strives to reduce

process of selecting candidate Directors as well as of the process

its use of each of these as well as the amount of industrial wasteof deciding remuneration of Directors and related matters.

generated by setting reduction targets for each item. We also

Also in conjunction with the transition to a Company withensure that harmful chemical substances and waste are handled

Audit and Supervisory Committee, SUMCO has enacted a Basicand managed properly to minimize the environmental risks of our

Policy on Corporate Governance. This presents an organizedbusiness activities.

summary of our basic conceptual approach in this area in orderto further accelerate the movement toward enhancement ofWorking with stakeholders

corporate governance. The policy is grounded on the SUMCOThe SUMCO Group aspires to promote social development throughVision, which specifies our view of what the SUMCO Group should

the supply of silicon wafers while endeavoring to contribute to thebe, and it will expedite our further enhancement of corporate value.

well-being of the stakeholders who support us. Toward this end,

The semiconductor market in which SUMCO pursues its

we actively communicate with stakeholders and incorporate theirbusiness has four seasons. Even while being influenced by theopinions and requests into our activities.

short-term fluctuations of the market, in the medium-to-long term
we have continued to undergo the growth that accompanies
technical innovation. What is necessary in this industry issustained growth that maintains our momentum in a rapidlychanging market, and what progress in technology demands
above all is flexible development capabilities. SUMCO's corporate
governance has become a system for adjusting SOMCO to thisCEO & Chairman of the Board

Mayuki Hashimoto

1

SUMCO Corporation CSR Report 2016

COO & President

Michiharu Takii

kind of environmental change and reinforcing flexible, and agile
management.

SUMCO Corporation CSR Report 20162

Outline of the SUMCO Group

Contents(As of April 1, 2016)

Message from the Management

1

Editorial Policy

3

Outline of the SUMCO Group
Businesses of the SUMCO Group4
5

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

SUMCO Corporation

Japan

Head office

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

SUMCO TECHXIV Corp.

SUMTEC Service Corp.

SUMCO Technology Corp.

SUMCO Insurance Service Corp.

SUMCO Service Corp.

Japan Formosa SUMCO Technology Corporation

Establishment

July 30, 1999

Main business

Manufacture and sales of siliconwafers for semiconductors

reference to portions of the Global Reporting Initiative

Capital138.718 billion yen

Overseas(GRI) Sustainability Reporting Guidelines, Version 4.

Representative

Mayuki Hashimoto,CEO & Chairman of the Board

SUMCO Phoenix Corporation

PT. SUMCO Indonesia

SUMCO Southwest Corporation

SUMCO Singapore Pte. Ltd.

SUMCO Funding Corporation

SUMCO Korea Corporation

STX Finance America, Inc.

SUMCO Taiwan Technology Corporation

SUMCO Personnel Services Corporation

SUMCO Shanghai Corporation

SUMCO Europe Sales Plc

FORMOSA SUMCO TECHNOLOGY CORPORATION

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

CSR Management
SUMCO’s Stance on CSR

9Corporate Governance

10Compliance
Risk Management

12
13

Environmental Management
Environmental Impact of Business Activities
Combating Global Warming

15
17
19
20

Effective Use of Water Resources

20

Environmental Impact (SUMCO Phoenix Corporation)

21
22

SUMCO Support Corp.

7 companies in Japan;
12 companies abroad

January 2015 to December 2015
Data for periods outside the above are noted as such.

SUMCO Corporation and its Group companies.

Reduction of Waste

Chemical Substance Management

Group companies

Period Covered

Organizations Covered

Environmental Report

Group Companies“SUMCO” and “the Company” as used in this reportrefers to SUMCO Corporation. The Financial Highlights

Network in Japan

Overseas Network

Offices
PlantsMajor subsidiaries

Offices(ingots, wafers)

subsidiaries. Other performance data outside the above

Imari(wafers)

SUMCO Phoenix Corporation

Akita
JSQ Division

SUMCO Shanghai Corporation(quartz crucibles)

SUMCO
Europe Sales Plc.

(ingots, wafers)

Yonezawa(ingots)
Japan Formosa
SUMCO Technology
Corporation

scope are noted as such.

(ingots)

Publication

Fukuoka

May 2016

Technical support

ChitoseNagasaki
SUMCO TECHXIV Corp.

cover SUMCO Corporation and its consolidated

Plants

Osaka

Saga

Noda
SUMCO Technology
Corp.

SUMCO
Phoenix
Corporation

SUMCO Phoenix
Corporation(ingots, wafers)(wafers)

Tokyo Head Office

PT. SUMCO Indonesia(wafers)(ingots, wafers)(planned publication of the next issue: May 2017)

SUMCO
Korea Corporation(wafers)

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

Miyazaki
SUMCO TECHXIV Corp.

SUMCO Singapore Pte. Ltd.

(ingots, wafers)

Social Activities Report

Note Regarding Forward-Looking Statements

Interaction with Customers

23

Interaction with Suppliers

25Interaction with Shareholders and Investors
Interaction with Local Communities
Interaction with Employees

26
27
29

other

Financial Highlights

forward-looking statements contained in this report

Net sales (consolidated)

Operating income (consolidated)

Net income/loss (consolidated)

are made by the Company based on the information(100 million yen)(100 million yen)(100 million yen)

Projections,predictions,andavailable at the time of the release of the statements

4,000

and therefore are subject to risks and uncertainties.

3,000

Due to various factors, actual results may vary

2,000

significantly

1,000

from

results

forward-looking statements.

Site Data

prospects,

anticipated

in

the

0

33

750

2,471

2,066

1,851

2,253

2,368

500

500

294

250

Jan. 2012

Jan. 2013 Dec. 2013 Dec. 2014 Dec. 2015 (FY)No. of employees (consolidated)

0

132

178

34

0

7

162

197

–500

256

9

–1,000–843–1,500Jan. 2012 Jan. 2013 Dec. 2013 Dec. 2014 Dec. 2015 (FY)

Sales composition by region (year ended December 2015)(employees)

10,000

8,328

8,000

7,879

7,277

7,396

7,480

Europe, etc.

8.3%
Japan

6,000

23.2%

4,000

Asia

2,000
0

3

SUMCO Corporation CSR Report 2016

53.9%
Jan. 2012

Jan. 2013 Dec. 2013 Dec. 2014 Dec. 2015 (FY)

North America

14.6%* The fiscal year ended December 2013
starts in February 2013 and ends in December 2013.

SUMCO Corporation CSR Report 20164

About the Silicon Wafers
Manufactured by SUMCO

For All Innovation
In daily life we hardly ever see a silicon wafer, but they are used in every sort of electronic device and are indispensable in our lives.
All sorts of technological innovation have enabled the evolutionary development of electronic devices, which have added immeasurably to

SUMCO is a manufacturer of silicon wafers, which are used as substrates for semiconductor devices. Electronic equipments

our lives and greatly facilitated cultural progress.
Some products have consequentially become smaller, and others larger; some lighter, some stronger, some faster.

such as mobile phones, personal computers, digital home appliances, and control units for automobiles and industrial machines

Engineers are carrying on the battles of their predecessors, and are going beyond the achievements of those persons, creating revolutionary

all incorporate semiconductor devices, and silicon wafers are essential material for manufacturing semiconductor devices.
Silicon is the second most abundant element on Earth, after oxygen. Because silicon combines with oxygen easily, it exists in thechange. The continued evolution of the silicon wafer is a precondition for taking up this battle.
SUMCO sees itself as being engaged in this battle, as a corporation dedicated to contributing to all sorts of technological innovation onform of silicon dioxide (silica) in nature. Silica is the main constituent of soil, sand, and stone. High-purity silica that was mined issmelted and refined into polycrystalline silicon with a purity level of 99.999999999%, and wafers are produced from this ultra-high-purity

behalf of the advancement of society and the development of humanity.

polycrystalline silicon.

Bu s in esse s o f t h e S U M CO G ro u p

1Businesses of the SUMCO Group

Manufacturing Silicon Wafers
Smelting
andRefining

Monocrystalline
Silicon Ingot
Manufacture

Polycrystalline
SiliconSilicaCircuitPattern
Lithography

Slicing

Monocrystalline
Silicon Ingot

Silicon Wafer

Monocrystalline Silicon Ingot Manufacturing Processes

Dicing

Packaging
Semiconductor
Chip

Patterned Wafer

Assembly
Semiconductor
DeviceElectronic
Product

Wafer Processes

Melting

Seeding

Pulling

Slicing

Monocrystalline
Silicon Ingot

Image
Sensors

Electric
VehiclesPower
Semiconductors

Large numbers of cutting-edge semiconductors

Image sensors serve as the “eye” for

Numerous semiconductor devices are

Devices called power semiconductors areare used in telecommunications equipment,

capturing still and video images. The siliconalready at work inside motor vehicles,

used to control electric power. These areincluding logic chips to run various

wafers used in these semiconductor devices

in current and voltage control systems,

technically complex devices, making this aapplications, e-mail, internet browsing,capable of sensing images are demanded

airbag control devices, electronic toll

specialized field. Power supply control for

sensors for taking photographs, andextremely high levels of quality in order tocollection (ETC), and other systems.

heavy electric machinery, in particular, suchmemorylimit the “noise” generated when capturing

Semiconductor devices for use in motor

as electric trains that use power of overimagery under low-light conditions.

vehicles,1000 V, requires special know-how for the

to

store

photographs

andother data. Every year the functions of

Monocrystalline
Silicon Block

Polycrystalline
SiliconTelecommunications
equipment

Lapping

Polishing

Wafer Washingthese semiconductors become moresilicon wafers that are key factors insophisticated, and they are made using

the stable operation of semiconductor

SUMCO silicon wafers.

devices.

Polished Wafer

silicon wafers, as well.

Creating corporate value with advanced
R&D and technology

The production of silicon wafers is divided into two processes: the monocrystalline silicon process and the wafer process. In the monocrystalline
silicon process, polycrystalline silicon is melted to produce monocrystalline silicon ingots. In the wafer process, these monocrystalline siliconingots are sliced into wafers, which are then polished and cleaned to create a flat, mirror-like surface.

demand high reliability of the

SUMCO corporate value is created in a cycle driven by R&D capability and technology strength.
Our unending challenge is to keep on driving, with all our might, this cycle that plays a key role in sustained growth by raising ourFour Quality Requirements for Silicon Wafers

technology level through R&D at the forefront of the age.
Supplyingproducts neededby customers
in a timely
mannerThere are mainly four quality requirements for silicon wafers as described below. A silicon wafer is an agglomeration of various advanced
technologies and its production requires extensive expertise. Sharing of information across the team and accumulation of techniques are
therefore essential.

Crystal Perfection

Flatness

Cleanliness and Elimination of Contamination
becoming

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

semiconductor devices are

increasingly miniaturized, silicon wafers are required

is required to be as close to zero as possible. To illustrate the concept, if

made from monocrystalline

to be extremely flat and smooth. To illustrate thewe enlarged a 300-mm wafer to the size of 300 meters (making it as big

silicon. The number of siliconconcept, if we enlarged a 300-mm wafer to the sizeas the Tokyo Dome), the quality requirement is equivalent to permitting

Siliconwafers

used

for

As

semiconductor

circuitsareatoms contained in a pieceof 300 meters (making it as big as the Tokyo Dome),a maximum of only 10 grains of sand, each with a diameter of 0.04

of 300-mm wafer can be as

the quality requirement is equivalent to permitting

mm, across the entire area. Wafers used for image sensors of digitalhigh as 3×1024. The word

unevenness of only 0.1 mm or less across the entire

cameras are required to“monocrystalline,” meanwhile,area.

be ultra-pure, at the level

300 mmApprox. 300 m
means the statein which theanorderly,

crystalline

structure,bothhorizontallyand vertically.

per trillion of impurities.
Approx. 300 m

5

SUMCO Corporation CSR Report 2016

Gaining“first call”
statusWinning highcustomer acclaim
Developing products
jointly with customers inanticipation of
next-generation needs

Approx. 300 m

Approx. 300 m

Unevenness of
0.1 mm or lessMaximized earnings
Evolved technologies
Prosperous lives for people

Sustainably Raising
our Corporate value

Unevenness of
0.1 mm or less

300 mmSilicon wafer

300 mmSilicon wafer

Silicon wafer

300 mmBuilding relationships
with customers
based on trust

A cycle driven by
R&D capability andtechnology strengthof no more than one partsilicon atoms are arrangedinRaising R&D capability
and production engineeringstrength

Supplying high-value-added
products yields:

Silicon wafer

Returning value to stakeholders
Making contributions to society

SUMCO Corporation CSR Report 2016

6

2

SUMCO Vision

3 Empower Employee Awareness of Profit

1 World’s Best in Technology

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

We also evaluate employees’ efforts appropriately to increase

are the actual driving force of a company. The SUMCO Group istheir motivation. The President’s Award (renamed SUMCO

no exception to this: SUMCO Vision of becoming the “World’s

CEO Award as of March 29, 2016) was established in 2013 toBest in Technology” and “Deficit-Resistant Even during Economic

recognize individuals and organizations that make outstanding

Downturns” cannot be realized unless all employees are highly

achievements toward enhancing the Company’s value every

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

year. Up-and-coming engineers and innovative Total Productive

employees of the Group share the vision, have high profit and cost

Maintenance (TPM) teams are also given opportunities to present

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

their accomplishments and receive awards every year.

cannot be maintained unless senior management is willing to

The SUMCO Group has plants in the United States, Taiwan,

share information with the employees. For this reason, the CEO

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

SUMCO’s technologies and ability to ensure a stable supply of& Chairman of the Board and COO & President visit each plant

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

products are praised by our customers the world over. In fact, ourfrequently to hold a management briefing in order to share issues

employees with outstanding talent regardless of nationality.

outstanding performance has been officially recognized by manyfacing the Group in the current business environment.

Bu s in esse s o f t h e S U M CO G ro u p

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

semiconductor manufacturers with their excellent supplier awards.
Using this recognition as a springboard to an even higher level ofsuccess, we will make greater efforts to promote cooperation withour customers based on long-term commitment and mutual trust,and to enhance our technological capabilities.
In March 2016, we received the Supplier Continuous Quality

撮影：Chip Holley Productions

2

1

Improvement (SCQI) Award for the 14th consecutive year fromIntel Corporation, the world’s largest semiconductor manufacturer.
In December 2015, we received the Excellent Performance Award1

for the second consecutive year from Taiwan Semiconductor

3

4

Manufacturing Company Limited (TSMC), the world’s largest
foundry. In February 2016, we also received the Best Partner

2

Award for the third consecutive year from Samsung Electronics
Co., Ltd., the world’s largest semiconductor memory manufacturer.
SUMCO has therefore achieved the feat of simultaneously winningawards for two consecutive years from the top3 corporations in

3

1 Supplier Continuous Quality Improvement (SCQI) Award from Intel2 Excellent Performance Award from TSMC
3 Best Partner Award from Samsung Electronics

semiconductors Sales.

2 Deficit-Resistant Even during Economic Downturns
break-even sales for the fiscal year ended December 2015 that showed over 20% improvement compared to 2011, before the Business
Reorganization Plan was put into effect.
Improvement in breakeven point due to successful execution of
the Business Reorganization Plan
■ Net sales ■ Breakeven sales

Over 20%
improvement

2,000
1,500
1,000

2,368

500
0

FY2011FY2015（before execution of Business Reorganization Plan）

7

SUMCO Corporation CSR Report 2016

companies in semiconductor sales are customers of the SUMCO Group.

3,000

2,471

2,000

0
-1,000-2,000

9

（%）

Japan

100

Europe, etc.

North America

Asia（100 million yen）

2,066

132
34

1,851

178
7

2,253

2,368

1,500
1,000

256
162

294
197

500
0
-500

-843
FY2011

Global top 10 companies in semiconductor sales (2015)

Overseas sales ratio■ Operating income（consolidated）■ Net income/loss（consolidated）（100 million yen）

1,000

2,471

The SUMCO Group supplies silicon wafers to semiconductor manufacturers around the world. All of the global top 10

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

2,500

6

4 Competitiveness in Overseas Markets

The SUMCO Group has been making every effort to improve the profit and loss breakeven point by reducing costs. As a result, we achieved（100 million yen）

5
1 2 3 TPM presentation terms 4 Employees of FORMOSA SUMCO TECHNOLOGY CORPORATION
5 Employees of SUMCO Phoenix Corporation 6 Employees of PT. SUMCO Indonesia

FY2012 FY2013* FY2014

FY2015-1,000

80
60
40
20
0

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

2009

2010

2011

2012

2013

2014

2015 （FY）

Ranking Company

Head oﬃce

Semiconductor sales(million USD)

50,305

1Intel

United States

2

Samsung

South Korea

41,606

3

TSMC

Taiwan26,562

4

SK Hynix

South Korea

16,917

5

Qualcomm/CSR

United States

16,032

6

Avago/Broadcom

Singapore

15,3827

MicronUnited States

14,8168

Texas Instruments

United States

12,112

9

NXP/Freescale

Netherlands

10,20010

Toshiba

Japan

9,734

* TSMC sales figures only are projected
Created by SUMCO based on IC Insights’ Strategic Reviews database* Fiscal year 2013 is the 11-month period from February to December 2013

SUMCO Corporation CSR Report 2016

8

CSR Management

to business, it receives reports from every Director on thethe improvement of people’s quality of life by supplying

status of the execution of duties, and it exercises supervisionhigh-quality silicon wafers, which are an essential substrateof the status of important matters of business execution atmaterial for semiconductor devices. At the same time, we

affiliated Companies, compliance, internal controls, and risk

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

are the foundation of CSR, and companies need to havealso consider it an important management issue to repay the

management. The Board of Directors, with the participationof industry and the improvement of living standards througheffective corporate governance to fulfill them. For this reason,trust from our shareholders by enhancing SUMCO’s corporateof Independent Outside Directors, also engages in the freethe supply of silicon wafers, an essential substrate material for

SUMCO regards corporate governance and corporate ethics asvalue as well as to build and maintain favorable relationships

exchange of opinions regarding the appropriate evaluation ofsemiconductor devices, SUMCO aspires to serve society as

fundamental management issues.

a good corporate citizen. As such, SUMCO undertakes a wide
spectrum of CSR activities.
We believe that companies are expected to meet theirwith our other stakeholders. Based on this understanding,Company performance and related matters, and reflects that

Secondly, on top of this foundation, companies also need

we are implementing various measures related to corporate

evaluation in the personnel administration of top management

to proactively conduct social contribution activities outside

governance, including enhancing the auditing and supervisory

members.

their business domains. These activities include environmental

functions of the Board of Directors, assuring the efficiency with

It is our basic Company policy that matters relating

maintenance, educational and cultural initiatives, and support for

which Directors execute their duties, enhancing the internal

to the general meeting of shareholders, matters relating toFirstly, companies have an obligation to ensure compliance,

employees’ volunteer activities. In this regard, SUMCO actively

controls of the SUMCO Group, and other such measures.

financial results and so on, matters relating to management

safety, and environmental sustainability as corporate citizens,

engages in local beautification projects and educational andWe are also taking steps to assure prompt decision-plans, matters relating to internal controls, and the execution

and are responsible for maintaining and improving the quality ofcultural activities with the aim of becoming a good partner for local

making in business as well as transparency and fairness inof other such important operation will be decided after

their products and services and returning profits to society as

communities.

business execution. In order to heighten the transparency

enough discussion by the Board of Directors, including theof management, we are also making every effort to disclose

Independent Outside Directors. For this reason, the Articles of

information in a timely and appropriate manner.

Incorporation do not stipulate that decisions on the execution

corporate social responsibilities from two perspectives.

part of their business activities. This obligation and responsibility(2) In promoting corporate activity, not only do we comply with
relevant laws and regulations, but we have also adopted and

SUMCO has appointed four Independent Outside

Relationships with Stakeholders

are implementing the SUMCO Charter of Corporate Conduct

Directors. One is an attorney; one is a management consultant

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

as a norm to be observed by SUMCO, our executives, ourwho has experience working as a certified public accountant;employees, and any others concerned. These measures guide

one is a person with wide experience and knowledge cultivatedus to execute business activities in a manner that is sound andthrough experience in the public sector as well as many years ofin accordance with social conscience.

experience in corporate management; and one is an individual

Our Main Responsibilities to Stakeholders
Customers

Customers

Suppliers

Shareholders

corporate governance. Each Independent Outside Director

2016, voted to amend the Articles of Incorporation to transfer

provides advice based on their own knowledge and engages

services)

SUMCO to a Company with Audit and Supervisory Committee. As

in supervision of management from the perspective of minorityof that date, therefore, the Company made the transition from ashareholders and other stakeholders. They participate in the

Return profits (dividends, etc.)

Company with a Board of Corporate Auditors to a Company withappointment and dismissal of Directors and other important

Enhance corporate value

Audit and Supervisory Committee. Directors who are Audit anddecision-making by the Board of Directors, and supervise

Supervisory Committee Members and have voting rights on thebusiness execution by top management and others as

Board of Directors will conduct audits. We expect this to make itwell as conflicts of interest between the Company and top

possible to enhance the effectiveness of audits and supervision

management and others.

Employees

as well as to enhance the effectiveness of internal controls by the

The Board of Directors meets once every month as aOffer secure employment

implementation of audits making active use of the Internal Audit

rule. When it is necessary, the extraordinary Board of Directors

Return profits (bonuses, etc.)

Department.

are convened.

Build a favorable work environment (mental health,(1) The SUMCO Board of Directors comprises of eight Directors(2) The Company’s Audit and Supervisory Committee is made(excluding Directors who are Audit and Supervisory Committee

up of six Directors who are Audit and Supervisory Committee

Members) and six Directors who are Audit and Supervisory

Members (of whom the majority of four are Independent

Create employment, Pay taxes

Committee Members (of whom four are Independent Outside

Outside Directors). In order to assure the effectiveness of

Support the improvement of local environments

Directors). In accordance with legal statutes, the Articles of

Audit and Supervisory Committee activities, permanent Audit

Support local educational and cultural activities

Incorporation, and the Rules of the Board of Directors, theand Supervisory Committee Members are put in place by the

Board of Directors makes decisions on management strategy,

mutual vote of Audit and Supervisory Committee Members.

childcare/nursing care leave)

Local communities

SUMCO Corporation CSR Report 2016

finance as well as corporate management, and knowledge of

The ordinary general meeting of shareholders, held on March 29,

Develop a solid and sustainable supply chain

Employeeswith broad experience and knowledge relating to international

Enhance customer satisfaction

Suppliers

Local
communities

Corporate Governance Structure(Maintain and improve the quality of products andShareholders

9of important business can be delegated to Directors.

Environmental
Reportmanagement plans, and other such important matters relating(1) We aim to contribute to the development of industry andSocial Activities
ReportBasic Stance

Site Data

SUMCO’s Stance on CSRCSRManagement

Corporate Governance

SUMCO Corporation CSR Report 201610

examines the appropriateness and other aspects of thematters in accordance with internal auditing rules and annual

right of investigation and audits the Directors’ execution

matter of inquiry and, also taking evaluations of Company

audit plan. The Department issues reports and notifications

The Audit and Supervisory Committee and the Internalof their duties for appropriateness and conformance withperformance into account, delivers its findings. The Boardof audit results to the CEO & Chairman of the Board andAuditing Department hold regular meetings, share reports on

legal statute and the Articles of Incorporation by inspectingof Directors, receiving the findings of the Nomination andto the COO & President, and to the audited departments.

audit results, exchange information and views, and collaborate

and confirming the status of compliance with legal statutes,

Compensation Committee, designates candidate Directors

When necessary, the Department also seeks implementationon other such activities in pursuit of efficient audits.

Articles of Incorporation, and so on, and by monitoring and(excluding Directors who are Audit and Supervisory Committee

of corrective measures and performs investigation andotherwise supervising the development and operational

Members) and decides on their remuneration and related

The Audit and Supervisory Committee also receivesof Managing Executive Officer or above, deliberates on

periodic reports from the Internal Audit Department on theimportant management matters. This Conference basicallystatus of implementation and the results of internal audits. The

meets every week.

system is also set up so that SUMCO and SUMCO Group(5) SUMCO has adopted the executive officer system, thereby

Directors, Executive Officers, and operation divisions report asCompliance
SUMCO Charter of Corporate Conductof illegal benefit or favors or engage in transactions which could
be recognized as unfair or unjust under social ethical standards.
We have also set specific criteria for the activities listed below andpermit these activities to be undertaken only when the criteria
are met and proper approval is given. The activities are: making

SUMCO believes that to expand its business and achieve sounddonations; providing sponsorship; payment of entertainment

separating the decision-making and supervisory functions ofgrowth, executives and employees need to comply with both laws

expenses/giving celebratory or condolence gifts; purchasing

appropriate to the Audit and Supervisory Committee regarding

the Board of Directors from the function of executing decisions

and their underlying spirit as well as adhering to ethical and otheradvertising; subscribing to or purchasing newspapers, magazines,

matters that seriously affect management, performance, andmade by the Board. This system provides the means tosocial norms in order for the Company to be accepted by theor other publications; payment of membership dues to external

other such aspects of business.

heighten the Company’s agility in responding to changes

global community.

organizations; and outsourcing.

(3) SUMCO has established a Nomination and Compensationin the business environment and assure the promptness ofCommittee composed of two Representative Directors anddecision-making.

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

Export Control

two Independent Outside Directors to serve as a discretionary(6) For each business operating organization, authority isis the supreme set of principles guiding our conduct at work. It

To ensure export control compliance aimed at maintaining

advisory body for the Board of Directors. The Nomination andclearly defined, supervisors are appointed, and appropriate

defines how executives and employees should act so as to enableinternational peace and security, SUMCO established andCompensation Committee receives inquiries from the Board

administrative procedures are established in accordance with

the Company to fulfill its social responsibilities and achieve further

implemented its Security Export Control Rules. The Company

of Directors regarding the process for selection of candidate

internal rules and under the leadership of the executive officer

growth. We appoint a Chief Compliance Officer to serve as thescreens customers and transactions under the Rules, and with

Directors of SUMCO (excluding Directors who are Audit andin charge.

company-wide supervisor and monitor the Company’s complianceregard to export of goods or provision of technology to non-Internal audits are conducted by the Internal Auditing

with the charter. Meanwhile, a supervisor in each department

residents, it checks whether the due process under the Rules arereasons for their designation as candidates, the structure of

Department (five staff members) to conduct audits ofregularly reports to the Chief Compliance Officer on how well thefollowed before commencing the export or technology provision.

executive remuneration, and related matters. The committee

management efficiency, compliance status, and other such

charter is observed within his or her department. Each Group

Supervisory Committee Members), their qualifications, the(7)to the charter, to establish a framework for corporate ethics andRenouncing Relationships with
Antisocial Forcesdevelop a compliance structure.

SUMCO Charter declares that the Company denounces any kindcompany also maintains its own code of conduct, which is similar

Corporate Governance Structure
General Meeting of Shareholders
Submission of
Proposed Decisions

Appointment & Dismissal

Audit report

Internal Hotline

Appointment & Dismissal
Appointment & Dismissal

Board of Directors

ReportAccounting

D i r ec to r s wh o are n ot Au dit an d Su pervisory Com mit t ee M emb ers

ReportM an age me nt Conf e re nc e

Consultation<Advis o ry C o mmit t ee>

Auditor

Audit and Supervisory Committee
Audit

Collaboration

Audit and Supervisory Committee Office

Collaboration

Selection, Discharge, Supervision<Company-wide committees>

・Bu s in es s
Secu rit y
Co m m it t ee

Execu t ive Direct ors
Execu t ive Of ficers

・Bu d g et Co m m it t ee
et c.

Depart men t s
Su bsidiaries

Internal
audit

Internal
Auditing
Department

also established an appointed outside lawyer to whom an internal

constantly reminded of the importance of this policy.

know how to use the hotline and contact the lawyer by, among

Activities on Intellectual Property

other means, distributing explanatory compliance cards.

As its basic policy, the SUMCO Group attaches importance to the

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

Nomination and Compensation Committee

Collaboration

Accounting audit, internal controls audit

demands from such forces. It is ensured through education andtraining that all executives and employees of the Company are

Instruction

Reportof relationship with antisocial forces and rejects any requests orAn internal reporting hotline has been in place since 2006. We
report is to be made. We ensure that all Company employees

Environmental
Report(4) The Management Conference, which consists of all executives

Social Activities
Reportmatters.

controls relating to financial reporting.

Site Data

status of the system of internal controls, including the internal

confirmation as required.

CSR
Management

The Audit and Supervisory Committee exercises the statutory

protection of intellectual property and utilizes it as a strategic tool
for the Group’s business while at the same time respecting theintellectual property rights of third parties.

is prohibited: (1) to make contributions and donations to politicians

Under this policy, we have established internal rules to define

in violation of the Political Funds Control Act and/or the Public

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

Offices Election Act of Japan; (2) to offer favorable benefits

prevent infringements; and provide training to employees. The

in the form of excessive entertainment or gifts, with the aim ofIntellectual Property Division actively conducts various intellectual

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

property operations in cooperation with other departments.

servants; (3) to deal with antisocial forces or groups; (4) to giveObtained intellectual property rights are reviewed periodically tofinancial benefits concerning the exercise of rights of shareholders;eliminate obsolete intellectual property so as to keep costs at a(5) to offer excessive entertainment or gifts, beyond the extent

rational level.

permitted by social ethical standards; and (6) to provide any typeExecution of business

11 SUMCO Corporation CSR Report 2016

SUMCO Corporation CSR Report 201612

An information communication route to be used in the event ofmaterialization of a risk as well as procedures to respond to adisaster, including the setting up of emergency headquarters havebeen done in accordance with the rule.

Risk Management Basic Policies

BSC’s Structure and Objectives

1 Structure
Business Security Committee (BSC)
Chair:
CEO & Chairman of the Board
Members: COO & President; Executive Vice President;
Executive officers in charge of a Division;
Officers in charge
Secretariat: General Affairs Division

To ensure the protection of all resources necessary for thecontinuation of business activities, including personnel, property,

Training for Emergency Situations

Training for Total Evacuation

Every year, the SUMCO Group assesses and identifies potential

The SUMCO Group conducts a comprehensive drill, nighttime/risks that may occur in conjunction with an earthquake,

non-workday drill, and a non-comprehensive drill (firefighting/typhoon, explosion, fire, chemical spill, or other emergency andreporting/evacuation) every year. As part of the comprehensive

plans and conducts exercises for risks identified as serious bydrill, in addition to joint training with the fire station, there is also

providing training to related personnel and in accordance

training for first-aid firefighting, the use of fire hydrants by thewith manuals. After each exercise, we identify problems andCompany’s firefighting team, and operation of the Company’s own

review procedures for continuous improvement to make ourfire engine.

response as quick and apposite as possible.
Departments

funds, and public trust, SUMCO regularly promotes measures to:Group companies
in Japan

Overseas Group
companies

We also conduct joint emergency response exerciseswith chemical suppliers to ensure that we can safely and(1) predict risks and prevent their occurrence (preventive measures

2 Objectives

smoothly handle a chemical spill discovered after delivery toagainst risk occurrence); and (2) minimize damage in the event of

The BSC undertakes the following risk management activities.

one of our sites.

risk materialization (response measures to minimize damage).

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

Our basic policy in promoting risk countermeasures is as follows:a. Prioritize risks by likelihood of occurrence and severity of impact
to ensure optimum allocation of management resources andmaximize effectiveness of measures.

For the nighttime/non-workday drill, we identify andaddress problems that cannot be discovered on workdays or
during the day.

Environmental
Reportset forth fundamental matters concerning risk management.

Social Activities
ReportSUMCO has established its Risk Management Basic Rules which

CSR
Management

Risk Management

discontinuation of business activities to ensure business continuity
in the case of an accident or other emergency situation.

Business Security Committee (BSC)

Ensuring Business Continuity

Evacuation training

Our Risk Management Basic Rules define business continuity as
an important management issue and we have been developing

Established to oversee SUMCO’s risk management as a whole,and improving our business continuity plan accordingly. The

the Business Security Committee (BSC) is responsible, among

BSC, explained above, formulates improvement plans andother things, for formulating the Company’s risk managementmonitors and reports on the progress of improvement.

policies and assessing the progress of risk management.

Site Datab. Minimize damage and loss by preventing the suspension or

In fiscal year 2015, the Imari No. 2 Plant of the Kyushu

With regard to specific risks, such as those involving

Factory conducted a disaster preparedness drill that simulated

information leakage, the financial market, and product quality,

the occurrence of an earthquake of upper-6 magnitude on theappropriate controls are established under dedicated internal rules.

Japanese scale.

Training in response to leaks duringincoming trichlorosilane transfer

Training in use of outdoor fire hydrants

Earthquake response simulation exercise

13 SUMCO Corporation CSR Report 2016

Training in transfer to medical care

SUMCO Corporation CSR Report 201614

Environmental Report

Environmental Management

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

We shall abide by environment-related laws and regulations, bylaws, and other agreed requirements.
	We shall strive to prevent environmental pollution in our entire business activities and undertake efforts to protect the
global environment and coexist in harmony with local communities.
	We shall define environmental objectives and targets, and by periodically reviewing these objectives and targets,shall promote continuous improvement of our environmental management system.
We shall make these policies known to all employees within SUMCO and disclose information internally and externally.
March 29, 2016
Mayuki Hashimoto, CEO & Chairman of the Board

2015 Results
Action items in business activities(based on per-unit production)

midterm target:2015

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

Reduce by 1.0%

2015 targets

2015 results

Reduce by 1.0%

Reduce by 3.0%

Reduction of chemical substance use

Reduce by 5.8%

Reduce by 5.8%

Reduce by 6.5%

Reduction of industrial waste

Reduce by 3.7%

Reduce by 3.7%

Reduce by 5.5%

Reduction of water consumption

Reduce by 0.8%

Reduce by 0.8%

Reduce by 4.1%

Environmental objectives(set each year)

2015 target

2015 attainment rate

Attainment rate: 80%

Attainment rate: 80%

93.4%

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

Environmental Education

2014

Environmental Audits

Education Targeted at Suppliers to Prevent
Environmental Accidents

At SUMCO, internal environmental audits are conducted byEnvironmental education is provided to suppliers of chemicals andsystem audits, meanwhile, are implemented by an external auditor.

internal environmental auditors. Environmental management

other products and to industrial waste treatment firms to ensure
the prevention of environmental accidents and compliance with

Internal Environmental Audit

laws and regulations.

Internal environmental audits are implemented every year

Site Data

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 and sustained environmental conservation activities to pass on the Earth's
irreplaceable environment to future generations.

Environmental
Reportthe base year. The status of our performance is checked semiannually and our target figures are reviewed as necessary.

1. Basic Environmental Philosophy

Social Activities
ReportWe set our environmental objectives for the 2015-2017 period, and work to achieve those objectives. The previous year's performance defines

CSR
Management

SUMCO Environmental Objectives

SUMCO Environmental Policies

for all organizations subject to the Company’s environmental

Environmental Management Structure

management system. The results are reported to top management

The general affairs management representative and the environmental managers at sites report to top management and act in accordance withand reflected in the following year’s activities for continuous

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

improvement of the environmental management system.

Management Committee and Environmental Management Committee at each site.

Environmental Management System Audit

Environmental Management Structure

Audits of randomly sampled Company sites are implemented
Top management

Suppliers receiving environmental education on the prevention ofenvironmental accidents

General affairs
management representative

Environmental Management
Committee

Company-wide secretariat

Company-wide internal
environmental auditors	Request for vehicle inspection to prevent the leakage offuel, oil, etc.

EMS Personnel Conference
Environmental manager at site

Environmental management
representative

Environmental Management
Committee at site

Environmental manager

Expert Committee

Contents of education

Secretariat at site

Internal environmental
auditor at site
Statutory administrator

Environmental promoter at worksite
Employees

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

every year and a renewal audit is conducted for all sites every three
years by an external independent auditor.

Compliance with Environmental
Legislation
The SUMCO Group ensures that Group companies keep
themselves updated about the requirements of laws, regulations,and agreements and that they comply with such requirements.
We also ensure that the Group complies with overseas
chemical substance regulations, namely, the Restriction on
Hazardous Substances (RoHS) Directive and the Regulation on
Registration, Evaluation, Authorisation and Restriction of Chemical
Substances (REACH).

* SUMCO TECHXIV Corporation was operating with the Nagasaki Plant and Miyazaki Plant each having its own independent structure, but as of December 4, 2015, it has
integrated its environmental management structure with that of SUMCO, and it operates with the same structure going forward.

15 SUMCO Corporation CSR Report 2016

SUMCO Corporation CSR Report 201616

Amount of Contaminated Substances Recovered Annually from
Groundwater at the Noda Office

was found that amounts of volatile organic compounds (VOC) andfluorine exceeded the soil and groundwater environmental standard
values. We have ever since been introducing countermeasures in
consultation with concerned authorities and others. At present, we
are working to prevent the spread of and recover contaminatedsubstances by using a pumping well set up near the boundary of
the plant grounds.

Tetrachloroethylene
Cis-1, 2-Dichloroethylene

Japan

700

CSR
Management

In a voluntary survey implemented at the Noda Office in 2005, it

Fluorine
Trichloroethene（kg）

Trends of Environmental Impact

600

CO2 emissions (Japan) (thousand tons per year)

500

SUMCO

STC

200

500

500

100

250

250

400

750

300

0

0

2007 2008 2009 2010 2011 2012 2013 2014 2015 (year)

750

2013

2015

2014

0

(year)

2013

2014

2015

(year)

2013

2014

2015

(year)

Environmental
ReportProgress of Countermeasuresagainst Soil and GroundwaterContamination at the Noda Office

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

STC

10

10

5

5

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

0

15

2013

2014

2015

0

(year)

Social Activities
Report15

Overseasbusiness activities with a particular focus on electric power, chemical substances, waste, and wastewater, which the Company has identified

INPUT

Business activities

Energy1,320 GWh
Electricity
Fuel(crude oil equivalent) 5,933 kL

Product
development● Environmental assessment

Procurement● Safe raw materials● Use of recycled materials

9.7 Mm3
0.2 Mm3
3.0 Mm3

PRTR-regulated substances● Energy conservation● Reduced use of chemical

substances
Production● Reduced water consumption● Compliance with laws andregulations

945 t● Reduced emissions ofpollutants● Reduced amount of waste

Transport

100

0

OUTPUT

SPX

200

200

100

2013

2014

2015

(year)

0

100

2013

CO2 emissions

Green procurement

Water

Amount handled

FST

200

Environmental Impact of Business Activities in 2015 (SUMCO Group in Japan)

Industrial water
Tap water
Groundwater

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

as priority environmental issues.

● Improved transport system● Use of reusable containers● Reuse of materials

Ocean
RiversSewerage

5 Mm3
3 Mm3
3 Mm3

Waste
135 t
Ordinary business waste
20,302 t
Industrial waste
Specially controlled industrial waste 2,915 t

PRTR-regulated substances

Amount released
Amount transferred

11 t
299 t

2014

2015

(year)

SPTI(Indonesia)

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

FST

2.5

2.5

0

2013

2014

2015

(year)

0

2013

2014

2015

(year)

2013

2014

2015

(year)

SPX

5.0

5.0

0

SPX
(U.S.A)FST(Taiwan)

790,000 t-CO2
Breakdown: Electricity
772,000 t-CO2
Fuel
18,000 t-CO2
CO2 emissions from transport
4,000 t-CO2

Discharged wastewater

Site Data

impact on the global environment. SUMCO promotes environmental considerations and the reduction of environmental impacts across its

5.0

2.5

2013

2014

2015

(year)

0* STC = SUMCO TECHXIV Corporation, SPTI = PT. SUMCO Indonesia, FST = FORMOSA SUMCO TECHNOLOGY CORPORATION, SPX = SUMCO Phoenix Corporation* CO2 emissions of the overseas subsidiaries are calculated using the emission coefficient of each country based on the Greenhouse Gas Protocol Initiative.

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

17 SUMCO Corporation CSR Report 2016

SUMCO Corporation CSR Report 201618

Reduction of Waste

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

electricity. To reduce this power consumption, we make every(kg-CO2/wafer)

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

efforts are currently being made to optimize the quantity ofeffort to streamline production and make it more rational. When it

40

30.5

comes time to update production and utility facilities, we replace30

them with energy-saving and high-efficiency alternatives.
breaks, and air conditioners are set at a reasonable temperature0

to save energy and reduce CO2 emissions.

900

21.7

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

2013

2014

2015

(year)

1,008

CO2 Emissions per Silicon Wafer Manufactured Overseas

We are replacing the containers used to ship 300 mm in diameter

Silicon Wafer of 300 mm in diameter
Silicon Wafer of 200 mm or less in diametersilicon wafers with reusable alternatives to reduce post-delivery(kg-CO2/wafer)
40
30

36.2
31.4

32.9

31.6

29.9

30

0
2014

2015

15,2770

18,454 19,110

6,891

6,107

5,067

4,540

4,261

2011

2012

2013

2014

2015

(year)

waste. The percentage of reusable containers used for shipment

be affected.
2014

2013

2015

(year)(year)

Electric Power Consumption (SUMCO Group)

CO2 Reduction through Modal Shift to Ship Transport
in the Field of Logistics
SUMCO used to rely solely on airfreight for the transportation

（GWh）
2,000

20,212

reusable containers to ensure that the quality of products is not

300

2013

22,64020,000in 2014 was 61.4% (56.7% in 2013). We conduct tests on the

20

2012

and their conversion into valuable resources.

Waste Reduction through the Adoption of
Reusable Containers

773

2011

30,000plastics, and other waste, we are promoting both their recycling* CO2 emissions per wafer increased in 2013 because the CO2 conversion factor(t-CO2/kwh) increased due to the higher ratio of thermal power generation.

600

0Amount of final disposal

Site Data

933

lessen the moisture content of sludge by improving dehydrator

Amount of waste generated

Social Activities
Report(thousand tons)

1,044

21.4

28.1

（t）
40,00010,000CO2 Emissions (SUMCO Group)

982

24.6

chemicals injected for wastewater treatment as well as to20

In offices, lighting is turned off during lunchtime and other

1,200

35.5

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

CSRManagement

The production of silicon wafers requires a significant amount ofEnvironmental
ReportCombating Global Warming

1,725

1,667

1,569

1,676

of silicon wafers to overseas markets. However, to reduce both

1,687

CO2 emissions and transport costs, we have been promoting a

1,500

modal shift to ship transport for some of our products since 2009.
Since ship transport requires longer transportation lead time and1,000

Effective Use of Water Resources

involves changes in the transportation environment, we conduct
500
0

2011

2012

2013

2014

2015

tests before switching to ship transport to confirm that the quality

Industrial water and groundwater are purified through filteringof products is not affected, as well as consulting with customers.

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

a significant amount of water, a valuable resource, we ensure
CO2 Reduction through Modal Shift to Ship Transport（t-CO₂）
1,200

1,118
1,004

900

1,007

930

that water left after the purification process is used to cool utility
facilities and dilute wastewater treatment chemicals, rather thandischarged. We also collect water used to rinse silicon wafers
and for other purposes to conserve as much water as possible

Amount of Water Supplied and Discharged(SUMCO Group [Japan])Amount of water supplied
Amount of water discharged（thousand m3）
16,000 14,153
12,00014,12911,997

12,2792011

2012

13,395

13,62013,078

11,616

11,83811,450

2013

2014

2015

8,000

for recycling.

771

4,000

600

0

(year)

300

019 SUMCO Corporation CSR Report 2016

2011

2012

2013

2014

2015 (year)

SUMCO Corporation CSR Report 201620

Chemical Substance Management

Environmental Impact (SUMCO Phoenix Corporation)
Operation of a sound environmental management system was furthered again in fiscal year 2015, and the amounts of electric power

Amount of PRTR-Regulated Substances Released and Transferred(SUMCO Group [Japan])

Improvements to the Management Thereof (Law concerning（t）

Pollutant Release and Transfer Register/PRTR Law) requires

900

Transfer amount

Energy Conservation
Due to continuing efforts to reduce usage in the manufacturingbusiness, the amount of electric power consumption has remained
flat since 2012.

Release amountbusinesses to report the amounts of any designated chemical
600

407.9

During the period from April 2014 to March 2015, there were
13 substances subject to reporting under the PRTR Law. The

273.9

300

306.3

268.8

majority of these were substances contained in cleaning agentsand fuels.

0

2011

2012

2013

2014

2015

（GWh）
250
200
150

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

Main
improvement
measuressubstances released into the environment or transferred.

Electric power consumption(FY)

l Continued to expand the use of variable-frequency

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

expanded.
l The operational efficiency was maximized.

100
50
0

2012

2013

2014

2015

(year)

2012

2013

2014

2015

(year)

2015(year)

2011

Reduction of Water Consumption
List of Substances Subject to PRTR Reporting (Class 1 Designated Chemical Substances: 1 ton or more per year;
Specific Class I Designated Chemical Substances: 0.5 tons or more per year)
Period covered: April 2014 to March 2015
AmounthandledAtmosphere

PublicwatersSoil

Landfill

Sewerage

Waste

9.00

0.00

0.00

0.00

0.00

0.00

0.00

20

2-aminoethanol

30Linear alkylbenzene sulfonate (LAS)

1.90

0.00

0.00

0.00

0.00

0.00

0.00

53

Ethylbenzene

0.00

0.00

0.00

0.00

0.00

0.00

0.00

71

Ferric chloride

6.20

0.00

0.00

0.00

0.00

0.00

0.00

80

Xylene

81.0

2.39

0.00

0.00

0.00

0.00

0.28

Hexavalent chromium compound

0.90

0.00

0.00

0.00

0.00

0.00

0.92

296

1,2,4-Trimethylbenzene

93.50

0.13

0.00

0.00

0.00

0.00

0.00

300

Toluene

9.04

7.80

0.00

0.00

0.00

0.00

0.00

332

Inorganic arsenic and its compounds

0.70

0.00

0.00

0.00

0.00

0.00

0.00

333

Hydrazine

1.00

0.00

0.00

0.00

0.00

0.00

0.00

374

Hydrogen fluoride and its water-soluble salts

685.26

0.35

0.03

0.00

0.00

0.00

254.99407

Poly (oxyethylene) alkyl ether

2.93

0.00

0.03

0.00

0.00

0.00

2.90

Poly (oxyethylene) nonylphenyl ether

53.70

0.00

0.00

0.00

0.00

0.00

39.00

Total

945.12

10.67

0.06

0.00

0.00

0.00

299.3788410* The amount handled is not equal to the total amount of released and transferred because some substances were released after decomposition and detoxification.

21 SUMCO Corporation CSR Report 2016l Water used for rinsing and other purposes in the

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

Site Data

Name of Class 1 Designated Chemical Substance

800,000
600,000

Main
improvement
measures

Ordinance
No.

(t)

Water consumption(thousand gallons)

Amount transferred
400,000
200,000
0

2011

Waste and Chemical Substances
Although the amount of waste are directly determined by customer
demand and product formation, improvement in the monocrystalline
silicon process using process water that was implemented in 2014
led to significant reduction in hazardous waste in fiscal year 2015.
Activities to reduce hazardous waste volume with a focus onarsenic waste were also begun in 2015.

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

Main
improvement
measures

Amount released

Along with electric power, water is one of the main resources
used in SUMCO’s manufacturing processes, and it is the focus of
measures to reduce usage. Large volumes of water amounting tomillions of gallons are recovered and reused in our plants every day.

Environmental
ReportChemical Substances in the Environment and Promotion ofSocial Activities
ReportThe Act on Confirmation, etc. of Release Amounts of Specific

CSR
Management

and water used and of hazardous waste generated were all on a level with or lower than in the previous year.

Reported Resultsl Focus of reduction activities was placed on major

sources of waste.
l Scrap materials were recycled and reused.
l Monthly report to management on total amount of
hazardous waste.
l Adoption of strict process for material approval.

40
20
0

2011

2012

2013

2014

SUMCO Corporation CSR Report 201622

Social Activities Report

our most important social responsibilities.

to continuously improve the awareness and skills of both workers

Customer Satisfaction Survey

miniaturization, further increased quality, and other such purposes,

and their supervisors.

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

as well as to examine business developments in view of market

The SUMCO Group works hard to supply high-quality

this invaluable input in creating technological roadmaps for further

products that will satisfy customers under its Group-wide unified

For this reason, we have developed quality education programs

received from customers are shared with relevant departments fortrends. By means of our technical communication meetings, we

Quality Policy. It controls quality throughout all processes fromfor each job and level of employee and assigned instructors for eachcontinuous improvement and analyzed regularly from four different

aim to enhance customer satisfaction and to further improve thedesign and development to production and shipment undereducation program to each silicon wafer production site in Japan toaspects: quality, cost, delivery, and service (QCDS).

quality of our products.

a quality management system based on ISO 9001 and ISO/TS

provide necessary education whenever needed.

16949 standards across all Group companies, including those

We held a total of 188 seminars at our plants in Japan inabroad, so as to enhance the safety and reliability of its products.

fiscal year 2015, and more than 100 seminars are planned in

We have also built an internal quality auditing system to ensure
Our silicon wafer production sites in Japan and abroad arein mind while also taking care to comply with laws, regulations,Customers

Response to Quality Problems
Should a plant become the subject of a customer complaint orexperience an abnormality or other quality problem, the plant
handles the problem immediately, investigating the cause and

SUMCO

SUMCO
TECHXIV

SUMCOTechnology

SUMCO
Phoenix

Other management

Environmental management[Quality targets]

Occupational safety and health management

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

PT. SUMCO
Indonesia

The targets are shared across the SUMCO Group.

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

Management of Chemical Substances Containedin Products(Deliberation body/

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

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

SUMCO ensures that chemical substances regulated by law orSales management dept./
Technology dept.

of are managed properly according to internal rules and standards.

Analysis of information
gathered from within
the Company andissue identification

Submission of Material Safety Data Sheets (MSDS)
SUMCO makes available material safety data sheets based on JIS
Z7250 to provide information on the related hazards of chemical
substances used by the Company and instructions on how toFollow-up on how
the measures
are taken

Then, the Quality Assurance Department holds a meeting todiscuss and determine the best known method (BKM) to prevent

Ensuring the Safety of Products

Sales management dept.

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

taking measures to prevent recurrence.

[Quality Policy]

Sales &
marketingdept.

Quality education at one of the SUMCO
seminars

SUMCO Group’s Mission Statement and Quality Policy and Targets

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

to further enhance customer satisfaction.

education at our plants in[Mission Statement]

to provide the best information with the customer's best interests

Flow for Sharing Customer Satisfaction (CS) Evaluation Information

other countries.

certified to ISO 9001 and ISO/TS 16949.

In communicating with our customers, we always make effort

and other relevant departments for inclusion in improvement plans

and ethical standards.

fiscal year 2016. We also
provide assistance for quality

continuous improvement of the quality management system.

The results of analysis are shared among sales & marketing

Plants/relevant depts.

handle them safely. We are planning to replace the sheets withsafety data sheets (SDS) based on JIS Z7253, a revised standard
Management review

that is compatible with the Globally Harmonized System ofcompanies to prevent similar problems from occurring at other

Classification and Labelling of Chemicals (GHS)*, an internationallyplants in Japan and abroad.

recognized system.

Flow for Sharing Quality Problems

Communication with Customers
SUMCO actively promotes interactive communication with

Customer complaint,
abnormality found in products

Environmental
ReportTo enhance the reliability and safety of products, it is necessary

into our ongoing quality improvement activities. We also utilizeSocial Activities
Report

Maintaining and enhancing product reliability and safety is one of

Improvement of Customer
Satisfaction

Site Data

Quality Education

Quality Control System

CSR
Management

Interaction with Customers

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

outside of Japan with the aim of grasping customer needs at

Meeting to discuss how to share
the problem across the Groupan early stage, accomplishing product development swiftly, andoffering products that meet customer needs.

1st stage sharing

PlantsWe

considertechnical

communication

meetings

asopportunities to obtain a fair evaluation of our products and to
Meeting to determine BKM
2nd stage sharing

earn the trust of our customers not only by presenting suggestions
Plantsfor use of our proprietary technologies but also by grasping ourcustomers' needs quickly and accurately, reflecting that grasp in
our product delivery performance, and confirming these points
and providing follow-up accordingly. The customer needs that we
identify at technical communication meetings are incorporated

23 SUMCO Corporation CSR Report 2016

SUMCO Corporation CSR Report 201624

3. Elimination of Conflict Minerals

CSR Procurement

To manufacture products that will bring greater convenience

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

and comfort to people around the world and contribute to the

SUMCO promotes responsible procurement to fulfill our social

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

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

based on mutual trust and fair transactions with superior suppliers.

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

We also collaborate with our suppliers to together actively promote

human rights, work environments, safety and health, environmental

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

conservation, and other issues to ensure that customers can use

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

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

fulfill our social responsibilities.

various stakeholders.

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

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

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

Throughperiodicbriefings to suppliersInteraction with Shareholders and Investors

and daily procurement
activities, we request
our suppliers to make

Basic Policy on Information
Disclosure

voluntary efforts topromote CSR-oriented
management.
to

SUMCO’s basic policy on investor relations is to ensure fair, impartial,
and timely disclosure of the Company’s management vision, businessSpecifically, we
distribute

IR Activities

each

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

situation, financial performance, and other corporate information to	We will actively disclose corporate information that weare not required to disclose by law or rules of the stock
exchange but that we believe will be useful for investors.

for both Japanese and overseas investors.

voluntarily conduct which we have prepared and is based on
the Electronic Industry Citizenship Coalition (EICC) Code of
Conduct. Suppliers are requested to utilize these guidelines fortheir own CSR management practices and to also encourage their

allow investors to evaluate the Company’s value fairly. We also
ensure that opinions from investors are reflected in our management
for the continuous enhancement of our corporate value.
The English and Japanese version of documents are
published simultaneously to ensure fair disclosure of information
The Timely Disclosure Network (TDnet) of the Tokyo Stock
Exchange is utilized to disclose information that needs to bedisclosed in a timely fashion, and documents are posted bothCommunication with Shareholders
and Investors

in Japanese and English simultaneously on our website. Annual
Reports and Message to Shareholder are also published toconvey messages from top management and report businessAnnual Shareholders’ Meeting

performance and conditions to help investors develop a better

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

Annual shareholders’ meetings are where important decisions

understanding of the Company.

assessment questionnaire that we had prepared in accordanceon the Company’s policies and other matters are made as wellwith the EICC Code of Conduct and checked the collected

as an opportunity to promote shareholders’ understanding of thequestionnaires to evaluate the current situation regarding theCompany. Convocation notices, in both Japanese and English, aresuppliers’ CSR practices.

posted on our website. Efforts are also made to provide explanations

secondary and tertiary suppliers to use and follow the guidelines.

Site Data

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

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

CSR
Management

Interaction with Suppliers

Code of Conduct concerning conflict minerals.

	
Optimum inventory control for each category ofprocured material

Environmental
ReportSUMCO requests its suppliers to meet the requirements of EICC

Social Activities
ReportThrough periodic supplier briefings and the Supplier Handbook,of the details of each agenda item and answer questions asked byshareholders during meetings in as clear a manner as possible byutilizing narrated video footage.

Message to Shareholder

25 SUMCO Corporation CSR Report 2016

Annual Report 2014

SUMCO Corporation CSR Report 201626

Interaction with Local Communities
for local residents and visitors to the plant. Bulbs and seeds areconcerted cleanup efforts for the Omura Bay area, hosted by theharvested and reused in the next year's planting.

Society to Beautify Omura Bay, which is organized by municipalities* SUMCO Support Corporation is a special subsidiary company of SUMCO
Corporation established for the purpose of employing people with disabilities.

and others in the area. The event is held twice a year.

Recognized by the Volunteer Fire
Corps Office of the Fire and Disaster
Management Agency
The SUMCO Kyushu Factory (Saga Prefecture) has actively
engaged in fire brigade activities and prevention of disasterAt the Yonezawa Plant (Yonezawa City, Yamagata Prefecture),

Together with nearby companies, SUMCO TECHXIV

activities. In March 2016, the factory mets the criteria ofused PET bottles and empty cans are collected from the plant

Corporation’s Miyazaki Plant (Miyazaki City, Miyazaki Prefecture) is

recognition in the Volunteer Fire Corps Factory system of theand homes of employees and provided, via a recycling company,

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

Fire and Disaster Management Agency of the Ministry of Internal

to a vocational facility for people with disabilities to help increase

as ‘Kiyotake-cho KINRIN Clean Activity’, the town in which the

Affairs and Communications. With a recommendation from Imariemployment opportunities for such people. Using the money

plant is located, as well as a cleanup activity for the Kiyotake River

City, the factory's program was recognized as a Volunteer Fire

received from the recycling firm for the sale of such bottles andevery October.

Corps Factory by the Fire and Disaster Management Agency ofcans, the plant also periodically purchases useful items andthe Ministry of Internal Affairs and Communications.

donates to the facility.
The Flower Project

Participation in Cleanup andBeautification Activities

Joint Fire Drill with a Social Welfare
Facility

SUMCO's Chitose Plant (Chitose City, Hokkaido Prefecture)
is carrying on a clean-up program on approximately 1.5 km of
sidewalks along the main roads of the Chitose Industrial Complex

At SUMCO TECHXIV Corporation's Nagasaki Plant (Omura City,
Kiyotake-cho KINRIN Clean Activity

Cleanup activity for the Kiyotake River

where the plant is located. Plant members pick up empty cansand trash that have been discarded, as well as fallen leaves

Nagasaki Prefecture), employees participate in a joint emergency
drill based on the scenario of a fire at a nearby social welfare facility

As a member of the South Noda City Factory Coordination

once a year.

Conferment ceremony for certificate of official
recognition as a Volunteer Fire Corps Factoryand other refuse, to keep

Council, SUMCO Technology Corporation (Noda City, Chiba

the sidewalks pleasant forPrefecture) participates annually in the Edogawa Clean Campaign,

joggers and people who walkwhich is sponsored by the Edogawa River Office of the Kanto

Participation in Local Traffic Safety
Campaigns

Participation in the Tozai Matsuura
Ekiden Road Relay Race

there on the way to work andRegional Development Bureau, Ministry of Land, Infrastructure,

SUMCO’s Chitose Plant (Chitose City, Hokkaido Prefecture)

The SUMCO Imari ekiden road relay race team from the Kyushu

school. The program will

Transport and Tourism and other organizations in 13 municipalities

participates in a traffic safety campaign undertaken during theFactory (Saga Prefecture) won its 11th victory, for the first time

also be continued with thelocated near the Edogawa River. SUMCO Technology also

traffic safety campaign week each spring and autumn. Participationin 3 years, in the 69th Tozai Matsuura Ekiden Road Relay Raceaim of creating a roadsideengages in a local community cleaning activity , as its own activity,

involves the employees lining up along a road to remind drivers(organized by the Saga Shimbun Company) on January 31, 2016.

environment where people

to clean up areas outside its site once every two months.

and pedestrians about traffic safety.

The Tozai Matsuura Ekiden Road Relay Race is an event with awill be less likely to discard

Clean-up program in the Chitose
Industrial Complex

refuse.

SUMCO's Kyushu Factory (Saga Prefecture) has been

tradition created by the localities and the occupations involved,

participating annually in traffic safety campaigns as a member ofand it contributes to vitalization of local communities. This time

The JSQ Division (Akita City) participates with local residents

the Shiraishi District Council of Safe Driving Supervisors. In March

there were 20 teams competing over the 59.8-km course in eightand companies in a cleanup activity for areas along the Omono

there is a program to clean traffic mirrors at curves, mainly in areas

sections that stretched from the Arita-cho Higashi Shutchojo-mae

River organized by the city every year.

around local elementary and junior high schools, and in December

bus stop to Karatsu Jinja shrine.

The Yonezawa Plant (Yonezawa City, Yamagata Prefecture)

CSR
Management

there in different seasons throughout the year are a relaxing sightEnvironmental
ReportSupport for a Vocational Facility for
People with Disabilities

At SUMCO TECHXIV Corporation’s Nagasaki Plant (Omura
City, Nagasaki Prefecture), many employees participate in theSocial Activities
Reportfactories and plants are actively involved in local activities.

Site Data

Aspiring to be a good partner for local communities, SUMCO’sa program urging drivers to turn on their lights earlier at twilight.

actively engages in various environmental activities in cooperation
with other companies in the Hachimanpara Industrial Park in which
the plant is located. These activities include planting seasonal

Edogawa Clean Campaign

Campaign to clean up areas outside
the Noda Plant site

flowers in median strips of roads inside the park, in which the local

SUMCO Support Corporation* (Imari City, Saga Prefecture) has

government and a local elementary school also take part, as wellbeen engaged in a volunteer project to create flower beds, plant

as releasing white-spotted charr fry into the Tenno River, whichseedlings, and grow flowers on land adjoining the front gate atflows through in the park, together with local elementary school

the SUMCO Corporation Kyushu Factory (Nagahama). An empty

children.

lot belonging to Imari City, the land was borrowed for this activity,
which has been named the Flower Project. The flowers blooming

27 SUMCO Corporation CSR Report 2016

Image credit: The Saga Shimbun Co., Ltd
Appealing to drivers to drive safely

Urging drivers to turn on their lights
earlier
Image credit: The Saga ShimbunCo., LtdSUMCO Corporation CSR Report 201628

The SUMCO Group holds a meeting of the Human Rights

As declared in the SUMCO Vision, SUMCO aspires to become

Awareness Promotion Committee, made up of representatives

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

Employment of People with Disabilities

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

training opportunities are provided to employees at all levels, fromSUMCO established SUMCO Support Corporation, which gives

awareness-raising activities are conducted on an ongoing basis

new recruits to managers and executives, to encourage them tospecial consideration to employing people with disabilities, inthroughout the Group. At the meeting, the policy for activities forpursue lifelong education and stay abreast of changing needs

2004. In May the same year, SUMCO Support was designatedthe coming fiscal year is decided and shared so that activities

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

as a “special subsidiary company” by the government. Ever since,

based on that policy—including lectures by external experts andindependently. Young engineers are also provided every year withpeople experiencing various challenges in their lives have foundtraining using audiovisual aids—will be carried out at each site

an opportunity to present their research achievements to seniorjob opportunities and been employed in a wide range of areas,

and Group company. Furthermore, to maintain a comfortable andmanagements as a means of enhancing their motivation.

The Number of Employees Who Took Family Leave(January to December 2015) (SUMCO)
Male

FemaleMaternity leave

0

4

Total
4

Childcare leave

0

10

10

Nursing care leave

1

0

1

Occupational Safety and HealthManagement

both at SUMCO Support and various other Group companies.

We have introduced occupational safety and health management

pleasant working environment at all times, a workplace bullying

To pursue the SUMCO Vision of “Empower Employee

The SUMCO Group continues its efforts to fit the right person

systems (OSHMS) aimed at achieving zero accidents at various

consultation desk is set up at each site where both male andAwareness of Profit” the President’s Award (renamed theto the right job in order to help individual employees reach theirworkplaces. These systems are designed to prompt businessfemale staff members are available for consultation by anyone

SUMCO CEO Award as of March 29, 2016) was established infull potential as well as to provide employment opportunities andoperators and workers to cooperate with each other to implement

whenever needed. Moreover, the SUMCO Group does not use

2013. This award will be presented every year to individuals andmaintain and improve supportive work environments for people

safety and health management voluntarily and continuously

child labor of any kind, and through daily work management,

organizations—including those of Group companies—that havewith disabilities.

through an established PDCA (plan-do-check-act) cycle in orderensures the absence of forced labor. We also ensure that bothmade a meaningful contribution to increasing the Group’s value.

male and female employees receive fair treatment and that the pay

Furthermore, in line with our aim to enhance “Competitiveness

Employment Ratio of People with Disabilities(SUMCO Group [Japan])system is not gender-biased.

in Overseas Markets,” which is included in SUMCO Vision, we（％）

The Number of Employees Who Received Human Rights
Awareness Training in the Past Five Years (SUMCO Group [Japan])(employees)
1,600

1,344

1,200
800

983

1,057

1,153

638

400
0

2011

2012

2013

2014

2015

* Between 2011 and2012, the fiscal year
starts in February andends in January thefollowing year. The
fiscal year 2013 starts
in February and ends inDecember. Between
2014 and 2015, thefiscal year starts inJanuary and ends inDecember.

are working to develop a globally competitive human resourcesby encouraging employees to become familiar with and respect

2.25

2.2
2.1

studying abroad and acquiring foreign language skills.

2.0
1.9

health standards of our business sites.

2.12
1.99
1.81

2011

Statutory employment
ratio since April 2013:
2.0%

2.01
Statutory employment
ratio until March 2013:
1.80%

1.8
1.7

that will help enhance employee health. The systems are thus
instrumental in the continuous improvement of the safety and2.3

different cultures and values as well as by enhancing programs forto prevent accidents and create comfortable work environments

2012

2013

2014

2015

Environmental
ReportUtilization and Development ofa Diverse Workforce

Social Activities
ReportHuman Resources Development(FY)* The figure for eachfiscal year is theaverage of the period
from April to March of
the following year.

To prevent accidents and mitigate risks, SUMCO implements

Site Data

Respect for Human Rights

CSR
Management

Interaction with Employees

risk assessments for facilities, operations, chemical substances,and others. Various activities are also performed to ensure safety,
including safety education, risk prediction, “pointing and calling,”
and reporting of close calls.
We have conducted a stress check for each employee
across the Group since 2007 to promote the further improvementof work environments.

Employment of Older Workers
SUMCO has a post-retirement reemployment scheme in place(FY)

In addition, there are no workplaces with a particularly highinherent risk of accidents or illnesses within the Group.

that allows experienced and willing employees to continue to
Presentation by an up-and-coming engineer

contribute their high-level skills after mandatory retirement at age
60, provided their skill sets meet the Company’s needs. Employees
reemployed under the scheme can work until the age of 65.
Due to the amendment of the Act on Stabilization of
Employment of Elderly Persons enforced on April 1, 2013, wehave gradually abolished the criteria limiting employees’ eligibility
for reemployment under a “transitional measure,” as defined in theact, and reemployed all employees who wish to continue to work.

Childcare Leave and Nursing Care Leave
Presentation by an up-and-coming engineer

We support employees’ childcare and other family care responsibilities
by offering childcare leave, nursing care leave, and special work
arrangements for employees with a child aged under three years old.

29 SUMCO Corporation CSR Report 2016

SUMCO Corporation CSR Report 201630

SUMCO TECHXIV Corp. Miyazaki Plant

October 2008

Japan Industrial Safety and Health Association Chairman’s Award

SUMCO Corp.

0.90

October 2008

Akita Pref. Labor Standards Association Chairman’s Award

Japan Super Quartz Corp.1

0.60

October 2008

Nagasaki Labor Bureau Director’s Commendation for Safety and Health

SUMCO TECHXIV Corp. Nagasaki Plant

0.30

December 2008

Ministry of Health, Labour and Welfare Class 1 No Accident Record

0.99

SUMCO TECHXIV Corp. Nagasaki Plant

0.00

0.98

1.05

1.00

0.94

1.06

1.06

Number of Employees (full-time equivalents)
Item

Regular employees
3,489

SUMCO

0

0.27

0.14
0
2010

2011

Temporaryemployees
194

7,480

0.37

2009

2012

0.10
2013

Consolidated

0
2014

Japan

5,332

Overseas

2,148

349

2015 (year)

June 2009

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

SUMCO TECHXIV Corp. Nagasaki Plant

July 2009

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

SUMCO TECHXIV Corp. Nagasaki Plant

September 2009

Commendation from Chief of Miyazaki Pref.
Police Headquarters for the Promotion of Traffic Safety

SUMCO TECHXIV Corp. Nagasaki Plant

February 2010

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

SUMCO Corp. Kyushu Factory (Saga)

November 2010

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

SUMCO Corp. Kyushu Factory (Imari)issues through discussion for the perpetual development of theNovember 2010

Letter of Appreciation from Japanese Red Cross Society

SUMCO Corp. Kyushu Factory (Imari)Company and improvement of working conditions.

December 2010

Golden Order of Merit from Japanese Red Cross Society(Blood Donation)

SUMCO TECHXIV Corp. Miyazaki Plant

December 2010

Accreditation as a Cooperating Business with Miyazaki City Volunteer Fire Corps

SUMCO TECHXIV Corp. Miyazaki Plant

August 2011

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

SUMCO Corp. Kyushu Factory (Imari)August 2011

Order of Merit from Japanese Red Cross Society

October 20112

(as of the end of December 2015)

CSR
Management(frequency rate)
1.20

March 2008

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

SUMCO Group (Japan)

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

Labor-Management Relations
SUMCO’s basic labor-management policy is to maintain soundrelations based on mutual understanding and trust and to solve

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

Japan

5,332

North America

553

Southeast Asia

343

East Asia

1,232

Europe

20

Total

7,480

Environmental
ReportAwarded site

Manufacturing industry averageSocial Activities
ReportAward

Year & month

Employment Status

Accident Frequency Rate2

Specifically, with the aim of maintaining business operations
based on integrated efforts between labor and management, aBreakdown of Employees (Consolidated)labor-management meeting is generally held twice a year to share
information and promote communication.

Managers

Generalemployees

Total
6,840

Also, at labor-management meetings held once a month

Male

757

6,083

Female

39

601

640

SUMCO Corp. Kyushu Factory (Saga)at each plant, plant managers and union representatives discuss

Total

796

6,684

7,480

Nagasaki Labor Bureau Director’s Commendation for Safety and Health

SUMCO Corp. Nagasaki Officesuch issues as the production situation.

November 2011

Nuclear and Industrial Safety Agency Director-General’s Award for Safety Management ofHigh-Pressure Gas

SUMCO TECHXIV Corp. Miyazaki Plant

meets regularly throughout the year to discuss important issues

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

SUMCO Technology Corp. Noda Plant

October 2013

Saga Labor Bureau Director’s Commendation for Safety and Health

SUMCO Corp. Kyushu Factory (Kubara)

perspectives, thus allowing labor and management to work closely

October 2013

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

SUMCO Corp. Kyushu Factory (Saga)

together to address various issues.

February 2014

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

SUMCO Corp. Kyushu Factory (Kubara)

May 2014

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

SUMCO Corp. Kyushu Factory (Saga)

July 2015

Hokkaido Labor Bureau Director’s Commendation

SUMCO Corp. Chitose Plant

March 2016

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

SUMCO Corp. Kyushu Factory (Imari)Site Data

Safety and Health/Disaster Prevention Awards Received

Furthermore, the Labor-Management Study Committee
such as the improvement of working conditions and review
of various systems from multifaceted, holistic, and long-term

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

1

31 SUMCO Corporation CSR Report 2016

SUMCO Corporation CSR Report 201632

Site Data

SUMCO Corporation
Kyushu Factory (Nagahama)

SUMCO Corporation
Kyushu Factory (Kubara)

SUMCO Corporation
Kyushu Factory (Saga)

Name of business site/plant

SUMCO Corporation
Noda Office

SUMCO Corporation
Yonezawa Plant

Scope of business

Design, development andmanufacture of silicon wafers

Design, development andmanufacture of monocrystalline
silicon ingots and silicon wafers

Design, development andmanufacture of monocrystalline
silicon ingots and silicon wafers

Scope of business

Manufacture of Silicon wafer

Design, development and manufacture of
monocrystalline silicon ingots

Examiningorganization

Japan Quality Assurance
Organization

Japan Quality Assurance
Organization

Japan Quality Assurance
Organization

Examiningorganization

Japan Quality Assurance Organization

Japan Quality Assurance Organization

Date ofacquisition

January 11, 1999

January 11, 1999

January 11, 1999

Date ofacquisition

January 11, 1999

January 11, 1999

Date ofrenewalJanuary 11, 2014

January 11, 2014

January 11, 2014

Date ofrenewalJanuary 11, 2014

January 11, 2014

Measurement results(regulation value)

Measurement results(regulation value)

Measurement results(regulation value)

Measurement results(regulation value)

Measurement results(regulation value)

Nitrogen oxides (NOx)ppm

Boiler 97 (150)

Boiler 78 (150)

Boiler 55 (110)

Nitrogen oxides (NOx)ppm

Boiler 58 (260)

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

ND (K-value regulation 17.5)

ND (K-value regulation 17.5)/

Sulfur oxides (SOx)m3N/h

0.33 (K-value regulation 9.0)/

Soot and dust

g/m3N

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

Soot and dust

g/m3N

Boiler 0.005 (0.3)

Boiler / ( / )

Water

1

Air

Regulation
value

Measurement
resultRegulation
value

Measurement
resultRegulation
value

Measurement
resultBiological oxygen demand (BOD)

mg/l

/

/1

/

/1

10

3.4

Chemical oxygen demand (COD)

mg/l

30

14

30

7.5

/

/

Suspended solids (SS)

mg/l

30

13

30

7

25

14

N-hexane extract

mg/l

5

ND

5

ND

3

ND

Iodine consumption

mg/l

/

/

/

/

/

/

Fluorine and its compounds

mg/l

8

4.1

8

3.05

3

0.8

Ammoniac nitrogen

mg/l

Nitrate nitrogen

mg/l

Nitrite-nitrogen

mg/l

Nitrogen content (T-N)

mg/l

120

43

120

34

60

16

Chromium content (T-Cr)

mg/l

0.2

ND

0.2

ND

0.2

ND

Phosphorus content (T-P)

mg/l

12

0.26

12

0.36

8

0.61

Arsenic

mg/l

0.05

ND

0.05

ND

0.1

ND

Trichlorethylene

mg/l

0.1

ND

0.1

ND

0.1

ND

80

19

80

30

100

8.9

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

33 SUMCO Corporation CSR Report 2016

Water

Social Activities
ReportAir

Status of acquisition of
ISO 14001 certification

Regulation value

Measurement result

Regulation value

Measurement result

Biological oxygen demand (BOD)

mg/l

25

18.4

600

11

Chemical oxygen demand (COD)

mg/l

20

14.6

/

/

Suspended solids (SS)

mg/l

50

10

600

33

N-hexane extract

mg/l

3

ND

5

ND

Iodine consumption

mg/l

/

/

220

1.2

Fluorine and its compounds

mg/l

8

4.4

8

5.5

Ammoniac nitrogen

mg/l

Nitrate nitrogen

mg/l

100

7

380

134

Nitrite-nitrogen

mg/l

Nitrogen content (T-N)

mg/l

30

13

/

/

Chromium content (T-Cr)

mg/l

1

ND

0.5

ND

Phosphorus content (T-P)

mg/l

2

0.3

/

/

Arsenic

mg/l

0.05

ND

0.1

ND

Trichlorethylene

mg/l

0.1

ND

0.1

/

Site Data

Status of acquisition of
ISO 14001 certification

Environmental
ReportName of business site/plant

CSR
Management

2015 data on the acquisition status of ISO 14001 certification for
the SUMCO Group’s business sites/plants and regulated substancesdischarged from each site/plant to the surrounding air and water* The drainage standard concerning COD applies to the Noda Office based on the total pollutant load control standards for drainage into Tokyo Bay.
* Wastewater from the Yonezawa Plant is discharged to a public sewer and therefore falls under the category of “wastewater discharged into rivers after treatment at sewage
plants” under the Sewerage Act. For this reason, the regulation value for fluorine compounds is 8 mg/l.

SUMCO Corporation CSR Report 2016

34

SUMCO Corporation
JSQ Division

Name of business site/plant

SUMCO TECHXIV Corporation
Nagasaki Plant

SUMCO TECHXIV Corporation
Miyazaki Plant

Scope of business

Design, development and manufacture ofsilicon wafers

Design, development and manufacture ofquartz crucibles

Scope of business

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

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

Examiningorganization

Japan Quality Assurance Organization

Bureau Veritas Japan Co., Ltd.*

Examiningorganization

Japan Quality Assurance Organization

Japan Quality Assurance Organization

Date ofacquisition

January 11, 1999

November 22, 1999

Date ofacquisition

January 11, 1999

January 11, 1999

Date ofrenewalJanuary 11, 2014

December 14, 2014

Date ofrevision

December 14, 2015

December 14, 2015

Measurement results(regulation value)

Measurement results(regulation value)

Measurement results(regulation value)

Measurement results(regulation value)

Air

Nitrogen oxides (NOx)ppm

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

Boiler 125 (260)

Boiler 65 (150)

Sulfur oxides (SOx)

m3N/h

/

/

Sulfur oxides (SOx)m3N/h

ND (K-value regulation 17.5)/

Soot and dust

g/m3N

Boiler / ( / )Firing furnace 0.08 (0.2)

Soot and dust

g/m3N

Boiler ND (0.3)

Boiler — (0.1)

Water

Regulation value

Measurement result

Regulation value

Measurement result

Water

Social Activities
ReportAir

Status of acquisition of
ISO 14001 certification

Regulation value

Measurement result

Regulation value

Measurement result

Biological oxygen demand (BOD)

mg/l

600

3.1

160

7.3

Biological oxygen demand (BOD)

mg/l

600

38.6

25

3.5

Chemical oxygen demand (COD)

mg/l

/

/

/

/

Chemical oxygen demand (COD)

mg/l

/

/

/

/

Suspended solids (SS)

mg/l

600

6

200

18

Suspended solids (SS)

mg/l

600

23

30

2

N-hexane extract

mg/l

5

3

5

1

N-hexane extract

mg/l

5

ND

5

ND

Iodine consumption

mg/l

/

/

/

/

Iodine consumption

mg/l

/

/

/

/

Fluorine and its compounds

mg/l

8

3.9

8

0.3

Fluorine and its compounds

mg/l

15

5.0

8

1.3

Ammoniac nitrogen

mg/lAmmoniac nitrogen

mg/l

Nitrate nitrogen

mg/l

Nitrate nitrogen

mg/l

380

47.7

100

9.6

Nitrite-nitrogen

mg/l

Nitrite-nitrogen

mg/l

Nitrogen content (T-N)

mg/l

/

/

120

6.6

Nitrogen content (T-N)

mg/l

240

71

120

4.8

Chromium content (T-Cr)

mg/l

2

ND

2

ND

Chromium content (T-Cr)

mg/l

2

ND

0.2

ND

Phosphorus content (T-P)

mg/l

/

/

16

1.2

Phosphorus content (T-P)

mg/l

32

0.23

16

0.04

Arsenic

mg/l

/

/

0.1

ND

Arsenic

mg/l

0.1

ND

0.1

−

Trichlorethylene

mg/l

0.1

/

0.1

ND

Trichlorethylene

mg/l

0.1

ND

0.1

−

/

/

100

4

* The Sewerage Law applies to Chitose Plant because drainage from these facilities is discharged into the sewerage system (subsequently released into the river). Accordingly,
the fluorine compound regulation value is set as 8 mg/l.
* The JSQ Division changed its ISO 14001 registration agency to the Japan Quality Assurance Organization from fiscal year 2015.

35 SUMCO Corporation CSR Report 2016

Site Data

Status of acquisition of
ISO 14001 certification

CSR
Management

SUMCO Corporation
Chitose Plant

Environmental
ReportName of business site/plant* The Sewerage Law applies to SUMCO TECHXIV Corporation Nagasaki Plant because drainage from the company is discharged into the sewerage system (subsequently
released into the sea). Accordingly, the fluorine compound regulation value is set at 15 mg/l.
* The drainage standard concerning BOD applies to SUMCO TECHXIV Corporation Miyazaki Plant because its treated drainage is discharged into the river.
* The frequency of measurement of air dust and soot at SUMCO TECHXIV Corporation Miyazaki Plant has been revised to once every five years. (The next measurement will takeplace in 2018.)

SUMCO Corporation CSR Report 2016

36

Note

Name of business site/plant

SUMCO Phoenix Corporation
Albuquerque Factory

SUMCO Phoenix Corporation
Phoenix Factory

Scope of business

Design, development and manufacture ofsilicon wafers

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

Examiningorganization

DNV

DNV

Date ofacquisition

June 19, 2000

June 19, 2000

Date ofrenewalApril 16, 2015

April 16, 2015

Measurement results(regulation value)

Measurement results(regulation value)

Status of acquisition of
ISO 14001 certification

Air
Nitrogen oxides (NOx)t/y0.86 (10.2)

12.5 (26.0)

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

0.26 (1.0)

PM10 (Particulate Matter)t/y0.06 (0.84)

1.07 (2.88)

Water

Regulation value

Measurement result

Regulation value

Measurement result

Biological oxygen demand (BOD)

mg/l

/

/

/

/

Chemical oxygen demand (COD)

mg/l

/

/

/

/

Arsenic

mg/l

2.09

/

0.13

ND

Cadmium

mg/l

/

/

0.047

ND

Copper

mg/l

/

/

1.5

0.07

Cyanide

mg/l

0.5

/

2

ND

Fluorine and its compounds

mg/l

36

/

/

/

Lead

mg/l

1

/

0.41

ND

Mercury

mg/l

0.004

/

0.0023

ND

Molybdenum

mg/l

2

/

/

/

Selenium

mg/l

0.46

/

0.1

ND

Silver

mg/l

5

/

1.2

ND

Zinc

mg/l

2.2

/

3.5

0.03

Suspended solids (SS)

mg/l

/

/

/

/

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

37 SUMCO Corporation CSR Report 2016

SUMCO Corporation CSR Report 201638

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