SUMCO
SUMCO Corporation CSR Report2017

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
Aspiring to Serve as aGood Corporate Citizen
Semiconductor devices are used in every facet of our lives, from

Risk Management

data terminals such as smartphones and personal computers,

The SUMCO Group has a global market share of approximately

home appliances including televisions and air conditioners through30%, meaning as if our silicon wafers are used in one in every three

to automobiles, trains and other vehicles. Providing the technologicalto four electronic devices around the world. The stable supply ofbase for such devices, silicon wafers are critically important inproducts is therefore our most critical management challenge andmaintaining today's standard of living.

an important social responsibility. In addition to managing risks to

SUMCO is a specialized silicon wafer manufacturing

ensure stable supply, SUMCO takes steps to maintain and improvecompany. With the aim to be a good corporate citizen andits business continuity plans that include supply chain-related

contribute to the development of industry and the improvement of

measures.

people’s quality of life by supplying silicon wafers, the SUMCOS U M CO V i s i o n
1. World’s Best in Technology
2. Deficit-Resistant Even during 		
Economic Downturns
3. Empower Employee
Awareness of Profit
4. Competitiveness in Overseas
Markets

Group has been promoting CSR activities.

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

Corporate Governanceand chemical substances. The SUMCO Group strives to reduce its

The SUMCO Group endeavors to maintain fairness, efficiency anduse of each of these, as well as the amount of industrial wastetransparency in its management by further enhancing its corporate

generated, by setting reduction targets for each item. We also

governance.

ensure that harmful chemical substances and waste are handled

In March 2016, SUMCO shifted from a Company with a
Board of Corporate Auditors to a Company with an Audit andand managed properly to minimize the environmental risks
resulting from our business activities.

Supervisory Committee. It has been a year since the new system
was put into place, whereby certain Directors who are Audit andWith Our Stakeholders

Supervisory Committee Members with voting rights on the Board

The SUMCO Group aspires to promote social developmentof Directors supervise execution of opperation by directors. We

through the supply of silicon wafers while endeavoring to contribute

appreciate the resulting enhancement in the effectiveness of audit

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

and supervision.

“Work style reform” is a current topic in society. As part ofAlso, in conjunction with the transition to a Company with an

our efforts to maintain an environment that supports the balancing

Audit and Supervisory Committee, SUMCO increased the numberof work and child-rearing, we opened “SUMCO Nursery Schoolof Independent Outside Directors from three to four. We recognize

Imari” at the Kyushu Factory (Imari) in November 2016. Part of its

that this has made it possible for the Board of Directors to engage

enrollment capacity is allotted to non-SUMCO employees in thein discussions supported by a greater breadth of knowledge andlocal community. By making it open to the public, we hope toinsight with a greater variety of perspectives, and we value thecontribute to the vitalization of the area.

further activation of the Board of Directors and the enhancementin fairness, efficiency and transparency in our management.

Going forward, we will engage in various types of dialog withstakeholders in order to proactively leverage their opinions anddesires within our management activities.

Compliance
The SUMCO Group follows the SUMCO Charter, a code of
conduct that all officers and employees must comply with.
The SUMCO Charter broadly covers various social norms
that ought to be followed by companies, such as fair businessactivities, blocking relationships with anti-social forces, compliancewith security trade control, etc., as well as compliance with laws
and regulations.
Similar charters are implemented by all companies in the
CEO & Chairman of the Board

COO & President

SUMCO Group. Our group-wide efforts will continue to ensure that

Mayuki Hashimoto

Michiharu Takii

our corporate activities are sound and in accordance with social
norms.

1

SUMCO Corporation CSR Report 2017

SUMCO Corporation CSR Report 20172

Outline of the SUMCO Group
Message from the Management
Editorial Policy

Company Information

1
3

Editorial Policy
The objective of this report is to convey the SUMCO

Outline of the SUMCO Group

4

Business of the SUMCO Group5

stakeholders in order to enhance their understanding and7earn their support. This report has been prepared withSUMCO Vision

CSR Management
SUMCO’s Stance on CSR
Corporate Governance

910Compliance11

Risk Management

13

Group’s stance on CSR and report its activities to15

Environmental Impact of Business Activities

17

Combating Global Warming
Reduction of Waste
Effective Use of Water Resources

19
20
20

Chemical Substance Management

21

Environmental Impact (SUMCO Phoenix Corporation)

22

Trade 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

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 CORPORATIONGroup companies

Period Covered

SUMCO Support Corp.

7 companies in Japan;
12 companies abroad

January 2016 to December 2016
Data for periods outside the above are noted as such.

Network in Japan
Organizations Covered“SUMCO” and “the Company” as used in this report

Environmental Management

Group Companies

Establishment

SUMCO Corporation and its Group companies.

Environmental Reportrefers to SUMCO Corporation. The Financial Highlights
cover SUMCO Corporation and its consolidated

Offices
PlantsMajor subsidiaries(wafers)

SUMCO
Europe Sales Plc.

Yonezawa(ingots)

Fukuoka

Osaka

Saga

Noda
SUMCO Technology
Corp.

(wafers)

Projections,predictions,prospects,

andforward-looking statements contained in this report25

available at the time of the release of the statements

27

and therefore are subject to risks and uncertainties.

Interaction with Employees

31

Site Data

35(ingots, wafers)

are made by the Company based on the information

Due to various factors, actual results may varysignificantly

fromresults

forward-looking statements.

anticipatedinFinancial Highlights

theNet sales (consolidated)

Operating income (consolidated)

Net income/loss attributable to owners of
the parent company (consolidated)(100 million yen)
4,000(100 million yen)
500

(100 million yen)
500

400

3,000

2,066
2,000

1,851

2,253

2,368

2,113

400

256

300
200

1,000
0

Jan.
2013

Dec.
2013

Dec.
2014

Dec.
2015

Dec. (FY)2016

No. of employees (consolidated)
7,879

7,277

7,396

7,480

7,520

140

0

Jan.
2013

Dec.
2013

Dec.
2014

Dec.
2015

Dec. (FY)
2016

162

200

0

34
Jan.
2013

197
65

7
Dec.
2013

Dec.
2014

Dec.
2015

Dec. (FY)2016※ 2013年12月期は2013年2月から2013年12月までの11ヶ月間

Europe, etc.

8.0%
Japan

25.4%

4,000

Asia

2,000

SUMCO Corporation CSR Report 2017

300

100

6,000

0

178

Sales composition by region(year ended December 2016)(employees)

8,000

132

294

100

10,0003(wafers)

SUMCO Taiwan Technology Corporation
FORMOSA SUMCOTECHNOLOGY CORPORATIONSUMCO Singapore Pte. Ltd.

other

Interaction with Suppliers

28

SUMCO
Phoenix
Corporation(ingots, wafers)

23

Interaction with Local Communities

SUMCO Phoenix
Corporation

Miyazaki
SUMCO TECHXIV Corp.

Interaction with Customers

Interaction with Shareholders and Investors

PT. SUMCO Indonesia

Tokyo Head Office(ingots, wafers)(Planned publication of the next issue: May 2018)

SUMCO
Korea Corporation(ingots, wafers)(wafers)(ingots)

May 2017

SUMCO Shanghai Corporation(quartz crucibles)

Japan Formosa
SUMCO Technology
Corporation

Publication

SUMCO Phoenix Corporation

Akita
JSQ Division(ingots, wafers)

scope are noted as such.

Technical support

Chitose(ingots, wafers)

Imari

Plants

Offices

Nagasaki
SUMCO TECHXIV Corp.

subsidiaries. Other performance data outside the above

Overseas Network

Note Regarding Forward-Looking Statements

Social Activities Report(As of April 1, 2017)

53.3%
Jan.
2013

Dec.
2013

Dec.
2014

Dec.
2015

Dec. (FY)2016

North America

13.3%

SUMCO Corporation CSR Report 20174

In daily life, we hardly ever see a silicon wafer, but they are used in every sort ofelectronic device and are indispensable in our lives.

SUMCO-SupportingYour Everyday LifeAll sorts of technological innovations have enabled the evolutionary development ofelectronic devices, which have added immeasurably to our lives and greatly
facilitated cultural progress.
Some products have consequentially become smaller, and others larger; somelighter, some stronger, some faster.

Business of the SUMCO Group

Business of the SUMCO GroupEngineers are carrying on the battles of their predecessors and are going beyond
the achievements of those persons, creating revolutionary change. 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 tocontributing to all sorts of technological innovation on behalf of the advancementof society and the development of humanity.

Image Sensors
Image sensors serve as the “eye” forcapturing still and video images. The
silicon wafers used in these
semiconductor devices capable ofsensing images are demanded
extremely high levels of quality inorder to limit the “noise” generated
when capturing imagery under lowlight conditions.

Telecommunications
Equipments

Automotive
Semiconductors

Power
Semiconductors

Large numbers of cutting-edge semiconductors
are used in telecommunications equipments,
including logic chips to run various applications,e-mail, internet browsing, sensors for taking
photographs, and memory to store photographs
and other data. Every year the functions of these
semiconductors become more sophisticated,
and they are made using SUMCO silicon wafers.

Numerous semiconductor devices are
already at work inside motor vehicles.
Extremely high reliability is expected for driverassistance systems such as automatic driving,
automatic braking, and lane keeping assist,and the level of quality demanded for siliconwafers is also severe as it is the key factor in thestable operation of semiconductor devices.

Devices called power semiconductors areused to control electric power. These aretechnically complex devices, making this a
specialized field. Power supply control forheavy electric machinery, in particular, suchas electric trains that use power of over1000 V, requires special know-how for thesilicon wafers, as well.

Manufacturing Silicon Wafers

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

Smelting
andRefining
SilicaMonocrystalline
Silicon Ingot
Manufacture

Polycrystalline
SiliconCircuitPattern
Lithography

Slicing

Monocrystalline
Silicon Ingot

Silicon Wafer

Dicing

Packaging
Semiconductor
Chip

Patterned Wafer

technologies and its production requires extensive expertise. Sharing of information across the team and accumulation of techniques are

Assembly
Semiconductor
Devicetherefore essential.
Electronic
Product

Crystal Perfection
Silicon

Monocrystalline Silicon Ingot Manufacturing Processes

Wafer Processes
Monocrystalline
Silicon Block

Polycrystalline
SiliconMelting

Seeding

Pulling

Monocrystalline
Silicon Ingot

Slicing

Lapping

Polishing

Wafer Washing

Polished Wafer

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.

wafersbecoming

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

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 thiswe 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 a

atoms contained in a piece ofof 300 meters (making it as big as Tokyo Dome),

maximum of only 10 grains of sand, each with a diameter of 0.04 mm,

300-mm wafer can be as highthe quality requirement would be equivalent toacross the entire area. Wafers used for image sensors of digital cameras

aspermitting an unevenness of only 0.1 mm or lessare required to be ultra-pure, at the level of no more than one part per

across the entire area.

quadrillion.

The

for

word

“monocrystalline,” meanwhile,As

semiconductor

circuits

Cleanliness and Elimination of Contamination

semiconductor devices are

3×1024.

used

Flatnessare300 mmApprox. 300 m

the
300 mmmeans the state
Approx.in
300whichmsilicon atoms are arranged inanorderly,

structure,bothand vertically.

crystalline
horizontally

Approx. 300 m

Unevenness of
0.1 mm or less

300 mmSilicon Wafer

Silicon Wafer

Silicon Wafer

5

SUMCO Corporation CSR Report 2017

SUMCO Corporation CSR Report 2017

6

SUMCO Strives to be an Excellent
Company through the Combined Powerof All its Employees.

Rather than the president or executives, it is the employees thatrealized unless all employees are highly motivated and committed

are the actual driving force of a company.

to working hard for the goal. In order to increase employee’s

All employees of the SUMCO Group share the SUMCO

motivation, SUMCO evaluates efforts and accomplishments

Vision, have high profit and cost awareness, and work to identify

appropriately with a variety of awards.

and solve issues. In hopes of further stimulating their awareness

Furthermore, with the aim of cultivating a workplace in which

and activities, the CEO & Chairman of the Board and COO &all employees can work comfortably, SUMCO has been taking

President visit each plant frequently to hold management briefings

further steps toward supporting employees raising children to findin order to share the issues facing the Group in the current

a greater work-family balance. As part of the project, SUMCO

business environment.

offers various work styles with flexible time shifts and has set up an

Our vision of becoming the “World’s Best in Technology” andin-house nursery school at the Kyushu Factory (Imari), our largest“Deficit-Resistant Even during Economic Downturns” cannot be

1 World’s Best in Technology

SUMCO Vision

3 Empower Employee Awareness of Profit

SUMCO Vision

manufacturing site.

SUMCO’s technologies and ability to ensure a stable supply of
products are praised by our customers the world over. In fact, ouroutstanding performance has been officially recognized by many
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,
Photography: Chip Holley, Chip Holley Productions

and to enhance our technological capabilities.

1

1

2

3

In March 2017, we received the Supplier Continuous Quality

1 Company-wide TPM presentation
2 Business conditions briefing
3 Employees of
PT. SUMCO Indonesia
4 Employees of
SUMCO TECHXIV CORPORATION
5 Employees of
SUMCO Phoenix Corporation

Improvement (SCQI) Award for the 15th consecutive year fromIntel Corporation, the world’s largest semiconductor manufacturer.
In February 2017, we received the Excellent Performance Awardfor the third consecutive year from Taiwan Semiconductor
Manufacturing Company Limited (TSMC), the world’s largest
foundry. In February 2017, we also received the Best Partner
Award for the fourth consecutive year from Samsung Electronics
Co., Ltd., the world’s largest semiconductor memory manufacturer.

2

3

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

4

5

SUMCO has therefore achieved the feat of simultaneously winningawards for three consecutive years from the top three companies
in semiconductor sales.

4 Competitiveness in Overseas Markets
The SUMCO Group has plants in the United States, Taiwan, and Indonesia, as well as a network of sales offices in various parts of the world,

2 Deficit-Resistant Even during Economic Downturns

allowing us to supply silicon wafers on a global scale. Nearly 80% of our sales come from the overseas market and we are proud to inform youthat all of the top 10 global companies in semiconductor sales are customers of the SUMCO Group. The solid and longstanding relationships

The silicon wafer industry is characterized by major short-term

Net sales/Operating income/Net income attributable to owners of the parentchanges in its business environment. The SUMCO Group has
been making progress toward achieving a structural operation
system in order to avoid deficits even during economic downturns,
and we’ve been pursuing the improvement of the break-even point■ Net sales(consolidated)(100 million yen)

3,000

through cost reduction.
With our continuous efforts in cost reduction, quality
improvement and product differentiation from competitors, wewill further strive to keep making profits in whatever economic
situation we find ourselves.

Operating income (consolidated)
Net income attributable to owners of the parent (consolidated)(100 million yen)

2,000

2,066

1,851

2,253

2,368

1,500

2,113

with these companies are the greatest advantage of us. To further reinforce this advantage, we actively recruit employees with outstanding talentregardless of nationality.

Overseas sales ratio
（%）

Japan

Europe, etc.

Global top 10 companies in semiconductor sales (2016)
North America(Unit: US$ billions)

Asia

100

0

20

40

60

Intel

1,000

80

Samsung

500

60

SK Hynix

040

MicronTexas
Instruments
Toshiba

TSMC

1,000
0

132
34

178

256

294

7

162

197

65

FY2015FY2016FY2012 FY2013* FY2014

140*Fiscal year 2013 is the 11-month period from February to December 2013

20
0

（FY）

NXP
Infineon

2009

2010

2011

2012

2013

2014

2015

2016

ST
*Excludes Fabless, includes Foundry
Created by SUMCO based on IC Insights’ Strategic Reviews database

7

SUMCO Corporation CSR Report 2017

SUMCO Corporation CSR Report 20178

CSR Management

Corporate Governancean attorney; one is a management consultant who has experience

foundation of CSR, and companies need to have effective

Committee. By adopting this system, the effectiveness ofworking as a certified public accountant; one is a person with wideof industry and the improvement of living standards through thecorporate governance to fulfill them. For this reason, SUMCO

supervision has been enhanced through audits conducted byexperience and knowledge cultivated through experience in the

supply of silicon wafers, an essential substrate material for

regards

Directors who are Audit and Supervisory Committee Members andpublic sector as well as many years of experience in corporate

semiconductor devices, SUMCO aspires to serve society as afundamental management issues.

have voting rights at Board of Directors meetings. In addition, themanagement; and one is an individual with broad experience andeffective of internal controls has been enhanced through audits

knowledge relating to international finance as well as corporate

conducted with the support of the Internal Audit Department.

management, and knowledge of corporate governance.

maintenance, educational and cultural initiatives, and support for

2 Composition and Roles of the Board of Directors

Group and increase its corporate value of the medium- to long-Firstly, companies have an obligation to ensure compliance,

employees’ volunteer activities. In this regard, SUMCO actively

The SUMCO’s Board of Directors comprises six Directors (excluding

term, each Independent Outside Director provides advice onsafety, and environmental sustainability as corporate citizens, andengages in local beautification projects and educational and

Directors who are Audit and Supervisory Committee Members) andmanagement policy and improvement based on their own

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

six Directors who are Audit and Supervisory Committee Members

knowledge and engages in supervision of management from theproducts and services and returning profits to society as part ofcommunities.

(of whom four are Independent Outside Directors). The Board of

perspective of minority shareholders and other stakeholders. They

Directors is comprised of Inside Directors with a proven record ofparticipate in the appointment of candidates of Director and otherperformance in their respective areas of responsibility andimportant decision-making by the Board of Directors, andoutstanding management abilities, and Outside Directors withsupervise business execution by the Board, top management andexpert knowledge and abundant experience, based on the basic

others as well as conflicts of interest between the Company andstance of the Company to ensure achieving an overall balance andtop management and others.

good corporate citizen. As such, SUMCO undertakes a wide
spectrum of CSR activities.

corporate

governanceandcorporateethicsas

Secondly, on top of this foundation, companies also need toproactively conduct social contribution activities outside their

We believe that companies are expected to meet theircorporate social responsibilities from two perspectives.

businessdomains.

These

activities

includeenvironmental

their business activities. This obligation and responsibility are theRelationships with Stakeholders

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

Our Main Responsibilities to Stakeholders
Customers

Customers● Enhance customer satisfaction(Maintain and improve the quality of products andservices)

Shareholders

Suppliers

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

Suppliers● Develop a solid and sustainable supply chain

Employees● Offer secure employment● Return profits (bonuses, etc.)

Local
communities

Employees● Build a favorable work environment (mental health,childcare/nursing care leave)

Local communities● Create employment, Pay taxes● Support the improvement of local environments● Support local educational and cultural activities

In an effort to ensure the ongoing growth of the SUMCO

Environmental
ReportSUMCO is organized as a Company with an Audit and Supervisory
Based on SUMCO’s aim of playing a leading role in the development

CSR
Management

3 Independent Outside Directors

SUMCO has appointed four Independent Outside Directors. One isSocial Activities
ReportCorporate Governance Structure
1 Basic Stance on Corporate Governance Structure

diversity in the knowledge, experience, and capabilities of the Boardof Directors.

4 Audit and Supervisory Committee

In accordance with legal statutes, the Articles of Incorporation,

The Company’s Audit and Supervisory Committee is composed ofand the Rules of the Board of Directors, the Board of Directors

six Directors who are Audit and Supervisory Committee Members (ofmakes decisions on management strategy, management plans, andwhom the majority of four are Independent Outside Directors). In

other such important matters relating to business, it receives reports

order to assure the effectiveness of Audit and Supervisory Committee

from every Director on the status of the execution of duties, and it

activities, permanent Audit and Supervisory Committee Members

exercises supervision of the status of important matters of businessare put in place by the mutual vote among Audit and Supervisory

execution at affiliated companies, compliance, internal controls, andCommittee Members. In addition, it is the Company’s basic policy torisk management. The Board of Directors, with the participation oftake steps to ensure that at least one Audit and Supervisory

Independent Outside Directors, also engages in the free exchange

Committee Member who has considerable knowledge andof opinions regarding the appropriate evaluation of company

experience pertaining to finance and accounting. In addition, theperformance and related matters, and reflects that evaluation in the

Company established the Audit and Supervisory Committee Officepersonnel administration of top management members.

and assigns staff to support the activities of the Audit and Supervisory

It is our basic company policy that matters relating to theSite Data

SUMCO’s Stance on CSR

Committee and to facilitate the smooth conduct of audits.

general meeting of shareholders, matters relating to financial results

The Audit and Supervisory Committee exercises its statutory

and so on, matters relating to management plans, matters relating toright of investigation and audits the Directors’ execution of theirinternal controls, and the execution of other such important operation

duties from the viewpoints of appropriateness and conformance

will be decided after enough discussion by the Board of Directors,

with laws and regulations and the Articles of Incorporation by

including the Independent Outside Directors. For this reason, theinspecting and confirming the status of compliance with laws andArticles of Incorporation do not stipulate that decisions on theregulations, Articles of Incorporation, and so on, and by monitoring

execution of important business can be delegated to each Director.

and otherwise supervising the development and operational statusof the system of internal controls, including the internal controls
relating to financial reporting.

*For more details on SUMCO’s corporate governance policies, please visit the Company’s Corporate Governance Basic Stance website.
*Details on the Company’s corporate governance reports can be confirmed at the Japan Exchange Group website’s Corporate Governance Information Search.

9

SUMCO Corporation CSR Report 2017

SUMCO Corporation CSR Report 201710

5 Nomination and Remuneration Committee

qualifications, the reasons for their designation as candidates, theIn an effort to broaden employee awareness of the SUMCO

demands from such forces. It is ensured through education and

In an effort to further enhance its corporate governance, SUMCO

structure of executive remuneration, and related matters. The

Charter of Corporate Conduct, we appoint a Chief Compliancetraining that all executives and employees of the Company are

has established a Nomination and Compensation Committee withcommittee examines the appropriateness and other aspects of the

Officer to serve as the company-wide supervisor, monitor theconstantly reminded of the importance of this policy.

Independent Outside Directors as key members to serve as amatter of inquiry and, also taking evaluations of company

Company’s compliance with the charter, and conduct regulardiscretionary advisory body for the Board of Directors.

performance into account, delivers its findings. The Board oftraining sessions for all employees on the charter. Meanwhile, aDirectors, receiving the findings of the Nomination andsupervisor in each department regularly reports to the Chief

An internal reporting hotline has been in place since 2006. We alsoinquiries from the Board of Directors regarding the process forCompensation

Directors

Compliance Officer on how well the charter is observed within his

established an appointed outside lawyer to whom an internal

selection of candidate Directors of SUMCO (excluding Directors(excluding Directors who are Audit and Supervisory Committeeor her department, and the Chief Compliance Officer in turnreport is to be made. We ensure that all Company employees

who are Audit and Supervisory Committee Members), their

Members) and decides on their remuneration and related matters.

reports these findings to the Board of Directors.

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

Each Group company also maintains its own code ofCorporate Governance Structure

conduct, which is similar to the charter, to establish a framework
for corporate ethics and develop a compliance structure.

General Meeting of Shareholders
Submission of
Proposed Decisions

Appointment & Dismissal

Audit report

Fair Business Activities/Anti-Corruption

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
Audit

ReportCollaboration

Instruction

ReportConsultation

Audit and Supervisory Committee OfficeNomination and Compensation Committee
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

Internal
audit

Internal
Auditing
Department

international peace and security, SUMCO established andimplemented its Security Export Control Rules. The Company

SUMCO clearly provides for compliance with law and prohibition

screens customers and transactions under the Rules, and withagainst providing unlawful profits to public servants in SUMCO

regard to export of goods or provision of technology to non-Charter, and further sets forth “Rules on Handling Grant ofresidents, it checks whether the due process under the Rules are

Benefits” to prevent briberies and unfair transactions.

followed before commencing the export or technology provision.

followings are prohibited: (1) to make contributions and donations to

Activities on Intellectual Property

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

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

Public Officers Election Act of Japan; (2) to offer favorable benefits inprotection of intellectual property and utilizes it as a strategic tool

the form of excessive entertainment or gifts, with the aim of seeking

for the Group’s business while at the same time respecting thereturn or receiving favors, in connection with duties of civil servants;

intellectual property rights of third parties.

Collaboration(3) to deal with antisocial forces or groups; (4) to give financial benefits

Under this policy, we have established internal rules to define

Accounting audit, internal controls audit

concerning the exercise of rights of shareholders; (5) to offer

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

Depart men t sexcessive entertainment or gifts, beyond the extent permitted byprevent infringements; and provide training to employees. The

Su bsidiaries

social ethical standards; and (6) to provide any type of illegal benefit

Intellectual Property Division actively conducts various intellectualor favors or engage in transactions which could be recognized as

property operations in cooperation with other departments.

unfair or unjust under social ethical standards. We have also set

Obtained intellectual property rights are reviewed periodically to

specific criteria for the activities listed below and permit these

eliminate obsolete intellectual property so as to keep costs at a

activities to be undertaken only when the criteria are met and proper

reasonable level.

Execu t ive Of ficers

・Bu d g et Co m m it t ee
et c.

Export Control
To ensure export control compliance aimed at maintaining

In the light of prohibition against corruption including bribery,

Under SUMCO’s Rules on Handling Grant of Benefits the<Advis o ry C o mmit t ee>

M an age me nt Conf e re nc e

Auditor

Audit and Supervisory Committee

other means, distributing explanatory compliance cards.

Execution of business

Complianceapproval is given. The activities are: making donations; providing
sponsorship; payment of entertainment expenses/giving celebratory

Information Management

or condolence gifts; purchasing advertising; subscribing to or

SUMCO clearly stipulates the appropriate use and management ofpurchasing newspapers, magazines, or other publications; payment

information in the SUMCO Charter of Corporate Conduct as wellof membership dues to external organizations; and outsourcing.

as has established “Rules on Information Management” along withSUMCO Charter of Corporate Conduct

Positioned above the Company’s various rules and

SUMCO believes that to expand its business and achieve soundcompliance programs, the SUMCO Charter of Corporate Conduct

SUMCO posts “Rules on Handling Grant of Benefits” on its

growth, executives and employees need to comply with both lawsis the supreme set of principles guiding our conduct at work. It

internal network for review by all, and to educate all of officers andand their underlying spirit as well as adhering to ethical and otherdefines how executives and employees should act so as to enable

employees by the training program of the SUMCO Charter of Corporate

The Company takes steps to appropriately manage personalsocial norms in order for the Company to be accepted by thethe Company to fulfill its social responsibilities and achieve further

Conduct. How compliance is accomplished or not in each Division of

information by establishing “Rules on Personal Information

global community.

growth.

SUMCO is regularly reported to the Chief Compliance Officer.

Management” in accordance to the Act on the Protection of

We understand that none of tantalum, tin, gold nor tungsten is necessary to the functionality or production of a product manufactured by us,
and that thus our product is not subject to the Conflict Mineral regulations under the Dodd-Frank Wall Street Reform and Consumer Protection
Act of the United States of America in 2010.

11 SUMCO Corporation CSR Report 2017

Renouncing Relationship with
Antisocial Forces

CSR
Management

candidate

Environmental
Reportdesignates

Social Activities
ReportCommittee,

Internal Hotline

Site Data

The Nomination and Compensation Committee receives

other related regulations and guidelines to prevent the leakage of
trade secrets and customer information.

Personal Information.
The Company undertakes tangible measures to prevent
information leakage by managing various computer system-

SUMCO Charter declares that the Company denounces any kind

related risks involving external attacks via the Internet, unauthorizedof relationship with antisocial forces and rejects any requests or

usage, and the spread of computer viruses.

SUMCO Corporation CSR Report 201712

Risk Management
The SUMCO Group assesses and identifies potential risks that may

The SUMCO Group conducts comprehensive drills, nighttime/non-set forth fundamental matters concerning risk management. An

Established to take charge of SUMCO’s risk management as aoccur in conjunction with earthquakes, typhoons, explosions, fires,

workday drills, and non-comprehensive drills (firefighting/reporting/information communication route to be used in the event ofwhole, the Business Security Committee (BSC) is responsible,

chemical spills and other emergencies, and plans and conducts

evacuation) every year.

materialization of a risk as well as procedures to respond to aamong other things, for formulating the Company’s risk

exercises every year for the risks identified as serious by providing

disaster, including the setting up of emergency responsemanagement policies and assessing the progress of risk

training to related personnel and in accordance with manuals.

headquarters have been done in accordance with the rule.

management.

To ensure the protection of all resources necessary for thecontinuation of business activities, including personnel, property,
funds, and public trust, SUMCO regularly promotes measures to:(1) predict risks and prevent their occurrence (preventive measuresagainst risk occurrence); and(2) minimize damage in the event of risk materialization (response
measures to minimize damage).
Our basic policy in promoting risk countermeasures is as follows:

information leakage, the financial market, and product quality,
appropriate controls are established under dedicated internal rules.
BSC’s Structure and Objectives

After each exercise, we identify problems and review

use of fire hydrants by the Company’s firefighting team, andprocedures for continuous improvement to make our response as

operation of the Company’s own fire engine, which is conducted onquick and appropriate as possible.

the hypothesis of a fire caused by an earthquake.

We also conduct joint emergency response exercises with

For the nighttime/non-workday drill, we identify and address

chemical suppliers to ensure that we can safely and smoothly

problems that cannot be discovered on workdays or during the day.

handle chemical spills discovered after a delivery to one of our sites.

1 Structure

Social Activities
ReportRisk Management Basic Policies

With regard to specific risks, such as those involving

As part of the comprehensive drill, in addition to joint training
with the fire station, there is also training for first-aid firefighting, the

CSRManagement

Training for Total Evacuation

Business Security Committee (BSC)

Environmental
ReportTraining for Emergency Situations

SUMCO has established its Risk Management Basic Rules which

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 optimum allocation of management resources andDepartments

maximize effectiveness of measures.
b. Minimize damage and loss by preventing the suspension or
discontinuation of business activities to ensure business
continuity in the case of an accident or other emergency
situation.
Major Risks Recognized in Risk Management Basic Rule
❶ Risks on General Management

Group companies
in Japan

Overseas Group
companies❹ Risks on Compliance❺ Risks on Information❻ Risks on Intellectual Properties❼ Risks on Human Resources and Employment

The BSC undertakes the following risk management activities.
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.

Evacuation drill

Training in the use of outdoor
fire hydrants

Ensuring Business Continuity

In the event of a major earthquake or other large-scale disaster,

Safety Confirmation System

Computer System-Related Disaster
Countermeasuresstricken regions are expected to experience temporary paralysis of

For data servers and other core systems used companywide, thesocial infrastructure and telephone service disruptions. To addressCompany has established equivalent back up servers for use

this issue, the SUMCO Group introduced “Safety Confirmation

during disasters in separate locations from where active servers

System” which is able to quickly and reliably provide information of

are installed. In addition, the Company has upgraded systems

the status of employees working in Japan.

involving regularly backing up server functions in order to maintain

This system has improved our ability to quickly determine the

Our Risk Management Basic Rules define business continuity as

status of employees and their families as well as provide necessary

an important management issue, and we have been developing

communications during emergencies. We think these functions

and improving our business continuity plan accordingly. The BSC,

help speed up post-disaster recovery efforts.

❽ Risks on Taxation, and Accounting

explained above, formulates improvement plans and monitors and❾ Risks on Products and Services

reports on the progress of improvement. Based on this, each

Risks on Safety and Sanitation

department takes steps to strengthen risk management and

Risks on Environment

responses to risk events.

Risks on Credit Limit

Training in the assembly anduse of portable toilets

2 Objectives❷ Risks on Accidents and Disasters❸ Risks on Discontinuation of Business

Protection against cold
Training in the use of aluminum
foil bags and blankets

Site Dataa. Prioritize risks by likelihood of occurrence and severity of impact

operations even in the event that active servers are damaged by amajor earthquake.

In fiscal year 2016, SUMCO TECHXIV Corporation’s Nagasaki
Plant conducted a disaster preparedness drill that simulated theoccurrence of an earthquake of upper-6 magnitude on theJapanese scale.

13 SUMCO Corporation CSR Report 2017

SUMCO Corporation CSR Report 201714

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 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.
January 1, 20172016 Results
Action items in business activities
Reduction of power consumption(reduction of CO2 emissions)(based on per-unit production)

Midterm targets: 2016

Base year

Reduction by 1.1%

2016 targets

2016 results

Reduction by 1.1%

Reduction by 2.9%

Reduction of chemical substance use

Reduction by 1.0%

Reduction by 1.0%

Reduction by 4.0%

Reduction of industrial waste

Reduction by 1.7%

Reduction by 1.7%

Reduction by 7.9%

Reduction of water consumption

Reduction by 1.1%

Reduction by 1.1%

Reduction by 5.9%

Environmental objectives(set each year)

2016 target

2016 attainment rate

Attainment rate: 80%

Attainment rate: 80%

92.8%

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

Environmental Education

2015

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

Environmental
ReportAs 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.

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

1. Basic Environmental Philosophy

Site Data

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

CSR
Management

SUMCO’s Environmental Objectives

SUMCO Environmental Policies

other products and to industrial waste treatment firms to ensure

Environmental Management Structure

the prevention of environmental accidents and compliance with

Internal Environmental Audit

laws and regulations.

Internal environmental audits are implemented every year for allorganizations

subjecttotheCompany’s

environmental

The environmental management officer and the environmental managers at the sites report to the environmental management executive officer

management system. The results are reported to top management

and act in accordance with their respective roles, responsibilities, and authorities. Information and instructions are communicated and shared

and reflected in the following year’s activities for continuousat the meetings of the Environmental Management Committee and the Environmental Management Committee at each site.

improvement of the environmental management system.

Environmental Management Structure

Environmental Management System Audit
Audits are implemented every year and a renewal audit isEnvironmental Management
Executive Officer

Suppliers receiving environmental education on theprevention of environmental accidents

Environmental Management Officer

Environmental Management Committee

Company-wide Internal
Environmental Auditors

Company-wide Secretariat

EMS Personnel Conference
Environmental Manager at site

Environmental Management
Representative in each division

Environmental Management
Committee at site

Environmental Promoter in each division

Expert Committee

Employees

15 SUMCO Corporation CSR Report 2017

Secretariat at site

Internal Environmental Auditor at site

Statutory Administrator

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

conducted 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	Importance of SUMCO personnel being present at thetime of delivery/collection and request that theirinstructions be followedchemical substance regulations, namely, the Restriction on	Request for inspection of industrial waste collection
vehicles, particularly to prevent leakage or dripping ofsludge, liquid waste, etc.

Registration, Evaluation, Authorisation and Restriction of Chemical

Hazardous Substances (RoHS) Directive and the Regulation on
Substances (REACH).

	
Report of previous environmental accidents that
occurred at the Company

SUMCO Corporation CSR Report 201716

Accumulated Amount of Contaminated Substances
Recovered Annually from Groundwater at the Noda Office
Fluorine
Trichloroethylene(kg)

Trends of Environmental Impact

Tetrachloroethylene
Cis-1, 2-Dichloroethylene

700

found that amounts of volatile organic compounds (VOC) and600

fluorine exceeded the soil and groundwater environmental standard

500

values. We have ever since been introducing countermeasures in

400

consultation with concerned authorities and others. At present, we

SUMCO

STC

300

750

750

are working to prevent the spread of and recover contaminated

200

500

500

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

100

250

250

the plant grounds.

0

CSR
Management

Japan

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

CO2 emissions (Japan) (thousand tons per year)

2008 2009 2010 2011 2012 2013 2014 2015 2016 (year)

0

2014

2016

2015

0

(year)

2014

2015

2016

(year)

2014

2015

2016

(year)

Environmental
ReportProgress of Countermeasuresagainst Soil and GroundwaterContamination at the Noda Office

SUMCO

STC

15

15

10

10

5

5

0

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

Environmental Impact and Business Activities in 2016 (SUMCO Group in Japan)
INPUT

Business activities

Energy1,338 GWh
Electricity
337,104 kL(crude oil equivalent)
Fuel (crude oil equivalent) 5,859 kL

9.4 Mm3
0.2 Mm3
3.2 Mm3

PRTR-regulated substances
Amount handled

Green procurement
Procurement • Safe raw materials• Use of recycled materials

Water
Industrial water
Tap water
Groundwater

Product
development • Environmental assessment

881.0 t• Energy conservation• Reduced use of chemical
substances• Reduced water consumption
Production • Compliance with laws andregulations• Reduced emissions ofpollutants• Reduced amount of waste• Improved transport system
Transport • Use of reusable containers• Reuse of materials

2016

0

(year)

Overseas

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

FST

SPX

200

200

200

100

100

100

0

OUTPUT

2015

2014

2015

2016

(year)

0

2014

2015

2016

717,000 t-CO2
Breakdown: Electricity
699,000 t-CO2
Fuel
18,000 t-CO2
CO2 emissions from transport
4,000 t-CO2

Ocean
RiversSewerage

5.2 Mm3
3.2 Mm3
3.1 Mm3

Waste
175 t
Ordinary business waste
19,519 t
Industrial waste
Specially controlled industrial waste 2,998 t

PRTR-regulated substances

Amount released
Amount transferred

8.1 t
299.8 t0(year)FST(Taiwan)

SPTI

FST

SPX

5.0

5.0

5.0

2.5

2.5

2.5

2014

2015

2016

(year)

2015

2016(year)

2014

2015

2016

(year)

SPTI(Indonesia)

Water consumption (overseas) (million m3 per year)

0

2014

SPX
(U.S.A)

CO2 emissions

Discharged wastewater

Site Data

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

2014

Social Activities
ReportWater consumption (Japan) (million m3 per year)

0

2014

2015

2016

(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 2017

SUMCO Corporation CSR Report 2017

18

40

makes every effort to streamline production and make it more

30.5

rational. When it comes time to update production and utility

30

facilities, we replace them with energy-saving and high-efficiency

20

21.4

0

In offices, lighting is turned off during lunchtime and otherbreaks, and air conditioners are set at a reasonable temperature tosave energy and reduce CO2 emissions.

(thousand tons)

30

982

1,044

1,008

900

21.7

waste acid, waste alkali, waste plastics, and other waste, weare promoting both their recycling and their conversion into

2015

2016

(year)

Waste Reduction through the Adoption of
Reusable Containers
We are replacing the containers used to ship 300-mm diameter

31.6

32.2

silicon wafers with reusable alternatives to reduce post-delivery

29.9

30

30.8

waste. The percentage of reusable containers used for shipment

80

78.6

77.3

2012

2013

82.4

83.7

84.6

0

2014

2015

2016

(year)

Amount of Disposal (SUMCO Group [Japan])Amount of final disposal(t)
40,000in 2016 was 64.2%.
Before introducing reusable containers, we conduct tests to

0

2014

2015

2016

(year)

600

ensure that the quality of the products is not affected.

30,00026,31820,34420,00022,994 23,371 22,692

10,000

300
0

90

70

32.9

20

931

(%)
100

valuable resources.

Silicon Wafer of 300 mm in diameter
Silicon Wafer of 200 mm or less in diameter(kg-CO2/wafer)
40

933

25.3

CO2 Emissions per Silicon Wafer Manufactured Overseas

CO2 Emissions (SUMCO Group)
1,200

2014

efforts are currently being made to optimize the quantity ofWaste Recycling Rate (SUMCO Group [Japan])chemicals injected for wastewater treatment. As for waste oil,

28.1

19.5

alternatives.

To reduce the large volume of sludge generated at our plants,

CSR
Management

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

2012

2013

2014

2015

2016

(year)

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

Environmental
Reportelectricity. To reduce this power consumption, the SUMCO GroupCO2 Emissions per Silicon Wafer Manufactured in Japan

Social Activities
Report

The production of silicon wafers requires a significant amount ofReduction of Waste

0

2012

2013

2014

2015

Site Data

Combating Global Warming(year)

2016

SUMCO used to rely solely on airfreight for the transportation ofsilicon wafers to overseas markets. However, to reduce both CO2

Electric Power Consumption (SUMCO Group)

emissions and transport costs, we have been promoting a modal(GWh)shift to ship transport for some of our products since 2009. Since

2,000

1,667

1,569

1,676

1,687

ship transport requires longer transportation lead time and involves

1,697changes in the transportation environment, we conduct tests

1,500

before switching to ship transport to confirm that the quality of
1,000

products is not affected, as well as consulting with customers.
Industrial water and groundwater are purified through filtering and500
0Effective Use of Water Resources

CO2 Reduction through Modal Shift to Ship Transport(t-CO₂)

2012

2013

2014

2015

2016

(year)

1,200

900

after the purification process to cool utility facilities and dilute

1,118
1,007

930

ion exchange for use at our plants. SUMCO uses the water left
wastewater treatment chemicals rather than discharging it. We

908

771

also collect the water used to rinse silicon wafers and for otherpurposes to conserve as much water as possible for recycling.

Amount of Water Supplied and Discharged(SUMCO Group [Japan])Amount of water supplied
Amount of water discharged(thousand m3)
16,000 14,129
12,00012,28013,395

13,62013,07812,765

11,616

11,83811,450

11,255

2013

2014

2015

2016

8,000

600
4,000
300

0

19 SUMCO Corporation CSR Report 2017

0

2012

2013

2014

2015

2012

(year)

2016 (year)

SUMCO Corporation CSR Report 201720

Chemical Substance Management

Environmental Impact (SUMCO Phoenix Corporation)
The operation of a sound environmental management system was furthered again in fiscal year 2016, and the amounts of energy

Transfer amountRelease amount

Energy Conservation

900

The Act on Confirmation, etc. of Release Amounts of SpecificDue to SUMCO’s efforts to improve energy efficiency continued in

Chemical Substances in the Environment and Promotion of

300

273.9

306.3

268.8

307.9

businesses to report the amounts of any designated chemical
substances released into the environment or transferred.

0

In 2016, there were 10 substances subject to reporting

2012

2013

2014

2015

2016

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

decreased in spite of increased production.
Main
improvement
measures

Pollutant Release and Transfer Register/PRTR Law) requires

310.1

(GWh)
150

2016, the amount of electric power consumption has slightly

600

Improvements to the Management Thereof (Law concerning

Electric power consumption(FY)

under the PRTR Law; we succeeded in reducing 3 substances

100

Environmental
Report(t )conservation, water consumption and the release amount were all on a level equivalent to or lower than in the previous year.

CSR
Management

Amount of PRTR-Regulated Substances Released and Transferred(SUMCO Group [Japan])Amount of PRTR-Regulated
Substances Released andTransferred● The use of variable-frequency drive motors

continued to be expanded.

50● The use of energy-saving lighting continued to be

expanded.
● The operational efficiency was maximized.

0

2012

2013

2014

2015

2016

(year)

2014

2015

2016

(year)

2016(year)

Social Activities
Reportfrom the previous year. The majority of these were substances
contained in cleaning agents and fuels.

Reduction of Water Consumption
Water is an important resource used in silicon wafer manufacturing

List of Substances Subject to PRTR Reporting (Class 1 Designated Chemical Substances: 1 ton or more per year;
Specific Class 1 Designated Chemical Substances: 0.5 tons or more per year)
Period covered: April 2015 to March 2016
Amount transferred

Atmosphere

PublicwatersSoil

Landfill

Sewerage

2-aminoethanol

13.80

0.00

0.10

0.00

0.00

0.00

0.00

30

Linear alkylbenzene sulfonate (LAS)

1.60

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

70.90

1.20

0.00

0.00

0.00

0.00

1.00

88

Hexavalent chromium compound

0.70

0.00

0.00

0.00

0.00

0.00

0.70

296

1,2,4-Trimethylbenzene

80.00

0.00

0.10

0.00

0.00

0.00

0.00

300

Toluene

7.10

1.00

5.20

0.00

0.00

0.00

0.30

374

Hydrogen fluoride and its water-soluble salts

642.30

0.40

0.00

0.00

0.00

0.00

256.00407

Poly (oxyethylene) alkyl ether

1.80

0.00

0.00

0.00

0.00

0.00

1.80

410

Poly (oxyethylene) nonylphenyl ether

57.00

0.00

0.00

0.00

0.00

0.00

40.00

881.10

2.70

5.40

0.00

0.00

0.00

299.80400,000

decreasing the volume of water used.
● The water used for rinsing and other purposes in the

Waste

20

Total

600,000

Site Data

Amounthandledmeasures over the past few years to increasingly reuse water whileMain
improvement
measures

Amount released
Name of Class 1 Designated Chemical Substance(thousand gallons)

processes. In light of this, we have been undertaking various(t)

Ordinance
No.

Water consumption

200,000

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

Waste and Chemical Substances
In fiscal year 2015, the Company began measures focused on

0

2012

2013

Amount of hazardous waste generated
( t)
150

reducing waste materials/residue containing arsenic as well as
effluent. Continuing these efforts in fiscal year 2016 resulted in a100slight decline in the volume of toxic waste materials.

Main
improvement
measures* 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 2017

● The focus of reduction activities was placed on

major sources of waste, such as arsenic-containing
residue and waste water.
● Scrap materials were recycled and reused.
● Monthly report to management on the total amountof hazardous waste.

50

0

2012

2013

2014

2015

SUMCO Corporation CSR Report 201722

Social Activities Report

Communication with Customers

Maintaining and enhancing product reliability and safety is one of

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

our most important social responsibilities.

continuously improve awareness and skills of both workers andCustomer Satisfaction Survey

customers through technical communication meetings in andtheir supervisors.

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

outside of Japan with the aim of grasping customer needs at an

The SUMCO Group works hard to supply high-quality

SUMCO actively promotes interactive communication withproducts that will satisfy customers under our Group-wide unified

For this reason, we have developed quality education

received from customers are shared with relevant departments forearly stage, accomplishing product development swiftly, andQuality Policy. We control quality throughout all processes fromprograms for each job and level of employee and assigned

continuous improvement and analyzed regularly from four different

offering products that meet customer needs.

design and development to production and shipment under ainstructors for each education program to each silicon wafer

aspects: quality, cost, delivery, and service (QCDS).

quality management system based on ISO 9001 and ISO/TS

production site in Japan to provide necessary education whenever

16949 standards across all Group companies, including thoseneeded.

abroad, so as to enhance the safety and reliability of our products.
We have also built an internal quality auditing system to ensure
continuous improvement of the quality management system.

We held a total of 390 seminars focusing on awarenessenhancement at our plants in

Our silicon wafer production sites in Japan and abroad are
certified to ISO 9001 and ISO/TS 16949.
SUMCO Group’s Mission Statement and Quality Policy and Targets

Quality education at one of the SUMCO
seminars

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.

Other management

Occupational safety and health management[Quality targets]

Environmental management

Response to Quality Problems

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.

Should a plant become the subject of a customer complaint orexperience an abnormality or other quality problem, the plant
handles the problem immediately, investigates the cause, andtakes measures to prevent recurrence.
Then, the Quality Assurance Department holds a meeting to

SUMCO
TECHXIV

SUMCOTechnology

SUMCO
Phoenixasto further enhance customer satisfaction.

use of our proprietary technologies but also by grasping ourSales &
marketing
dept.

Sales management dept.
(Deliberation body/

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

customers' needs quickly and accurately, reflecting that grasp in our
product delivery performance, and confirming these points andproviding follow-up accordingly. The customer needs that we
identify at technical communication meetings are constantly
incorporated into products to improve their quality. Beyond this,customer feedback is invaluable for creating roadmaps for

PT. SUMCO
Indonesia

The targets are shared across the SUMCO Group.

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

Sales management dept./
Technology dept.

products as well as for investigating business expansion based on

Analysis of information
gathered from within
the Company andissue identification

meetings with the aim of further improving customer satisfaction
and product quality.
In addition, we always provide the best information during ourcommunications with customers while being mindful of maintaining

Follow-up on how
the measures
are taken
Plants/relevant depts.

market trends. The Company undertakes technical communication

compliance.
Management review

Ensuring the Safety of Products

recurrence and shares it with all of the Group companies to prevent

Management of Chemical Substances Contained in
Products

similar problems from occurring at other plants in Japan and

SUMCO ensures that the chemical substances regulated by law or

abroad.

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

discuss and determine the best known method (BKM) to preventof are managed properly according to internal rules and standards.

Flow for Sharing Quality Problems
SUMCO

meetings

technological development to improve precision and differentiate[Mission Statement][Quality Policy]

communication

the trust of our customers not only by presenting suggestions for

Customers

in other countries.

technical

and other relevant departments for inclusion in improvement plans

also provide assistance for
quality education at our plants

consideropportunities to obtain a fair evaluation of our products and to earn

Flow for Sharing Customer Satisfaction (CS) Evaluation Information

Japan in fiscal year 2016. We

We

The results of analysis are shared among sales & marketing

Submission of Safety Data Sheets (SDS)

Customer complaint,
abnormality found in products

SUMCO makes available safety data sheets (SDS) based on JIS
Z7253 to provide information on the related hazards of chemical

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

Environmental
ReportImprovement of Customer
Satisfaction

Social Activities
ReportQuality Education

Site Data

Quality Control System

CSR
Management

Interaction with Customers

substances used by the Company and instructions on how tohandle them safely.
PlantsMeeting to determine BKM
2nd stage sharing

23 SUMCO Corporation CSR Report 2017

PlantsSUMCO Corporation CSR Report 201724

Basic Stancetransactions with suppliers. We also collaborate with our suppliers

SUMCO promotes responsible procurement to fulfill our social

In addition to well-planned emergency preparedness, such as

to together actively promote compliance with laws, regulations

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

and social norms, support global environmental conservation, andsuppliers, we pursue procurement that gives due consideration towell as sourcing across multiple channels, we also have a system

conduct other activities to fulfill our social responsibilities.

human rights, work environments, safety and health, environmental

in place that enables us to investigate the impact of a disaster orconservation, and other issues to ensure that customers can rely

accident immediately after it takes place. At the same time, we willon our products and enhance the satisfaction of various

also source from alternative suppliers, adopt alternative materials,

stakeholders.

and take every other measure possible for procurement in the

1 Transactions based on partnership

We will develop favorable partnerships with our
suppliers based on mutual trust.
2 Fair transactions

event of an emergency to minimize the effect on production.

Promotion of Our CSR Policy
Through periodic briefings to suppliers and daily procurement

We will ensure that our procurement is clean, open,

activities, we request our suppliers to make voluntary efforts toand fair.

promote CSR-oriented management.

3 Promotion of value analysis (VA) activities

Specifically, we distribute to each supplier a copy of our

We will encourage our suppliers to conduct value

Supplier Handbook, which includes a section on CSR as well as

analysis (VA) activities in order to propose cost

our Purchasing Policy and requests to suppliers. The Supplierimprovement methods, new materials, new technologies

Handbook is also posted on the procurement website for easy

and others, and will actively adopt such proposals.

reference at any time.

4 Compliance in purchasing activities

Briefing to Supplier

Optimum inventory control for each category of1 	Major Articles of CSR Questionnaire
1. Human Rights and Labor:❶ Freely Chosen Employment❷ No use of Child labor❸ Limitation of Working Hours

procured material	
We will review inventory quantities, storage sites,
transportation methods, and others for each type ofmaterial whenever necessary.
2 Source investigation and risk response	We will investigate and confirm production sites and❹ Lawful Wages

sources of major items and respond according to theguidelines on CSR activities that we invite our suppliers to❺ Humane Treatment

level of risk involved.

norms in the course of our purchasing activities.

voluntarily conduct which we have prepared and is based on the❻ Non-Discrimination

5 Fulfillment of corporate social responsibilities

Electronic Industry Citizenship Coalition (EICC) Code of Conduct.

❼ Freedom of Association

We will comply with laws, regulations, and social

The Supplier Handbook also contains, as an attachment,

We will fulfill our social responsibilities when conducting

Suppliers are requested to utilize these guidelines for their own

purchasing activities across our entire supply chain,

CSR management practices and to also encourage their

including with respect to our suppliers.

secondary and tertiary suppliers to use and follow the guidelines.

6 Green procurement

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

We promote the procurement with low environmental

assessment questionnaire that we had prepared in accordanceload while requesting that suppliers investigate andwith the EICC Code of Conduct and checked the collected

take steps to implement green procurement.

questionnaires to evaluate the current situation regarding the
suppliers’ CSR practices. Based on the results, we undertake
CSR audits that include field audits of suppliers.

2. Health and Safety:❶ Control of Occupational Safety❷ Preparedness for Emergency❸ Prevention of Occupational Injury and Illness
3. Environment:❶ Compliance with Environmental laws and regulations❷ Pollution Prevention and Waste Reduction❸ Control of Energy Consumption and Greenhouse
Gas Emission
4. Ethics

Environmental
ReportWe ensure that our purchasing is based on mutual trust and fairStrengthening of Business Continuity Plans forMaterial Procurement

Social Activities
ReportCSR Procurement

Site Data

Purchasing Policy

CSRManagement

Interaction with Suppliers

3 	Maintenance, enhancement, and review ofbusiness continuity plans for each item procured	
We will develop business continuity plans for eachmajor item so that we can properly respond to theoccurrence of any risk.
4 Risk assessment of suppliers	
We will periodically conduct checks on our main
suppliers with respect to their financial condition,
production systems, business continuity plans, andothers and respond appropriately depending on the
results.

❶ Compliance with Laws
❷ Fair Business Activities
5. Business Continuity❶ Risk Assessment and Risk Management❷ Business Continuity Plan (BCP)
6. Contribution to Society
7. Management System

25 SUMCO Corporation CSR Report 2017

SUMCO Corporation CSR Report 201726

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

Participation in Cleanup andBeautification Activities

Together with nearby companies, SUMCO TECHXIV
Corporation’s Miyazaki Plant (Miyazaki City, Miyazaki Prefecture) is

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

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

situation, financial performance, and other corporate information tois carrying on a clean-up program on approximately 1.5 km ofas ‘Kiyotake-cho KINRIN Clean Activity’, the town in which theallow investors to evaluate the Company’s value fairly. We also

sidewalks along the main roads of the Chitose Industrial Complex

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

sure of corporate information to investors is a coreensure that opinions from investors are reflected in our management

where the plant is located. Plant members pick up empty cans andevery October.

element in ensuring a sound stock market. The

for the continuous enhancement of our corporate value.

trash that have been discarded, as well as fallen leaves and other

SUMCO believes timely and appropriate disclo-company shall commit itself to speedy, accurate,
and fair disclosure of corporate information while

The English and Japanese version of documents are

refuse, to keep the sidewalks pleasant for joggers and people

published simultaneously to ensure fair disclosure of information

who walk there on the way to work and school. The program will

for both Japanese and overseas shareholders and investors.

also be continued with the aim of creating a roadside environment

always adopting the perspective of investors.

The Timely Disclosure Network (TDnet) of the Tokyo Stock

Corporate information that is useful in investor

Exchange is utilized to disclose information that needs to be

The JSQ Division (Akita City, Akita Prefecture) participates

decision-making shall be actively disclosed even

disclosed in a timely fashion, and documents are posted both inwith local residents and companies in a cleanup activity for areas

Japanese and English simultaneously on our website. Annual

along the Omono River organized by the city every year.

when not mandated by laws and regulations.

Communication with Shareholders
and Investors

Environmental
Reportand timely disclosure of the Company’s management vision, businesswhere people will be less likely to discard refuse.

Kiyotake-cho KINRIN
Clean Activity

Omura Bay Cleanup Efforts

Report and Message to Shareholder are also published to convey

CSR
Management

IR Activities

messages from top management and report business performance

SUMCO Technology Corporation (Noda City, Chiba Prefecture)and conditions to help investors develop a better understanding ofparticipates annually in the Edogawa Clean Campaign, which is

the Company.

sponsored by the Edogawa River Office of the Kanto Regional

Social Activities
ReportBasic Policy on Information
Disclosure

Interaction with Local Communities

Site Data

Interaction with Shareholders and Investors

Development Bureau, Ministry of Land, Infrastructure, Transport andGeneral Meeting of Shareholders

Tourism and other organizations in 13 municipalities located near

SUMCO positions General Meeting of Shareholders as thethe Edogawa River, collecting empty cans thrown out at and theoccasion where important decisions on the Company’s policies

Clean-up program in the Chitose
Industrial Complex

and other matters are made as well as an opportunity to promoteshareholders’ understanding of the Company. The notice ofThe

Yonezawa

Omono River Waterside Clean-Up Activity

Plantcleaning up of areas around the river bank. SUMCO Technology
also engages in a local community cleaning activity, as its own

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

convocation, in both Japanese and English, is posted on ourenvironmental activities in cooperation with other companies in the

SUMCO Support Corporation* Noda Operation Department

website. We also effort to provide explanations of the details of

Hachimanpara Industrial Park in which the plant is located. These(Noda City, Chiba Prefecture) engages in voluntary projects toeach agenda item and answer questions asked by shareholders

activities include cleaning up areas along major roads and planting

create flower beds as well as plant seedlings and grow flowers at

during meetings in as clear a manner as possible by utilizing

seasonal flowers in median strips of roads inside the park, with theunused flower beds in the SUMCO’s sites in Noda. Named thenarrated video footage.

local government and a local elementary school also taking part.

Flower Project, the flowers blooming there in different seasons
throughout the year are a relaxing sight for local residents andvisitors to the plant.
*SUMCO Support Corporation (head office: Imari City, Saga Prefecture) is a
special subsidiary company of SUMCO Corporation established for the purposeof employing people with disabilities.

Planting Seasonal Flowers in RoadMedian Strips

At SUMCO TECHXIV Corporation’s Nagasaki Plant (Omura
City, Nagasaki Prefecture), many employees participate in theconcerted cleanup efforts for the Omura Bay area, hosted by theSociety to Beautify Omura Bay, which is organized by municipalities
and others in the area. The event is held twice a year.
Message to Shareholder

27 SUMCO Corporation CSR Report 2017

Annual Report 2015

Campaign to clean up
areas outside the Noda
Plant site
The Flower Project

SUMCO Corporation CSR Report 201728

Support for a Vocational Facility for
People with Disabilities

Participation in Local Traffic Safety
Campaigns

The Barajima Kanto Group, headed by SUMCO’s JSQ Divisionin Imari City, the SUMCO Kyushu Factory (Saga Prefecture)

At the Yonezawa Plant (Yonezawa City, Yamagata Prefecture),

SUMCO’s Chitose Plant (Chitose City, Hokkaido Prefecture)(Akita City. Akita Prefecture), participated in the Akita Kanto Skill

participates in an annual event, the “Imari Autumn Festival—Imariused PET bottles and empty cans are collected from the plant andparticipates in a traffic safety campaign undertaken during theCompetition held at the Akita Kanto Festival, one of the three

Dance in ALL,” hoping to make a contribution to the vitalization ofhomes of employees and provided, via a recycling company, to a

traffic safety campaign week each spring and autumn. Participation

major traditional festivals in the Tohoku Region, and won the first

the region.

vocational facility for people with disabilities to help increase

involves the employees lining up along a road to remind drivers

prize in the Owaka freestyle group category.

employment opportunities for such people. Using the money

and pedestrians about traffic safety.

In the final, when the five team members successfullyreceived from the recycling firm for the sale of such bottles andconnected the relayed Kanto poles (long lantern bamboo poles)

cans, the plant also periodically purchases useful items andinto one within the time limit, there was a lot of applause anddonates to the facility.

cheers from the audience who were fascinated by the dynamic
performance.

Joint Fire Drill with a Social Welfare
FacilitySocial Activities
ReportOn the final night of the festival, the Kanto pole of the
Barajima Kanto Group was decorated with a lantern in honor of

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

their achievement.

drill based on the scenario of a fire at a nearby social welfare facility
Appealing to drivers to drive safely*The Kanto Skill Competition takes place every year with the aim of preserving
pole skills and features musical accompaniment called “hayashi.”*Owaka: There are 4 kinds of Kanto poles: “Owaka,” “Chuwaka,” “Shouwaka,”and“Youwaka.” Owaka is the heaviest and longest among the four, weighing 50 kg
and being 12 m long.

Site Data

Nagasaki Prefecture), employees participate in a joint emergency
once a year.

To give a boost to the community event as one of the companies

Environmental
ReportParticipation in Local Events

CSR
Management

Interaction with Local Communities

As a member of the Noda Regional Safe Driving Supervisor
Council, SUMCO Technology Corporation (Noda City, Chiba
Prefecture) participates in campaigns to prevent traffic accidents
and encourage driving with headlights on at dusk as well as
distributes leaflets to raise awareness of driving safety among local
Fire Drill with a Social Welfare
Facility

citizens.
Participates in an annual event, the “Imari Autumn Festival—Imari Dance in All”

Participation in Early-Fire
Extinguishing Competition

Cooperation and Participation inSports Events

A team from the SUMCO Service Corporation (Kishima-gun, Saga
Prefecture) won the “Early-Fire Extinguishing Competition” hosted by

SUMCO cooperates and participates in local sports events. The

the Imari City Fire Protection Association. This competition tests the

Imari SUMCO Kyushu Factory (Saga Prefecture) co-sponsors theability of teams to carry out fire reporting, extinguishing, evacuation,

IMARI HALF-MARATHON every year in the distribution of runnerand first aid in a safe, precise, and swift manner. In addition, anotherbibs.

team won a performance award for its display of rescue training
drills using air respirators in preparation for a real emergency.

In 2017, more than 3,000 participants attended the

Encourage driving with headlights

competition and they ran through the city in the early spring
weather.
Akita Kanto Skill Competition

On February 5, 2017, the Imari road relay race team from the
SUMCO Kyushu Factory took part in the 70th Tozai Matsuura
Relay Race competition (sponsored by the Saga Shimbun),achieving great results just as they did in the previous year.
This region-invigorating competition with its long-standing

Early-Fire Extinguishing
Competition

29 SUMCO Corporation CSR Report 2017

tradition is supported by the participation of local and corporate
teams.

SUMCO Corporation CSR Report 201730

The Number of Employees Who Took Family Leave(January to December 2016) (SUMCO)

The SUMCO Group holds a meeting of the Human Rights

As declared in the SUMCO Vision, SUMCO aspires to become theMale

FemaleAwareness Promotion Committee, made up of representatives“World’s Best in Technology.” To reach this goal, diversified training

Employment of People with Disabilities

Maternity leave

0

13

13

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

opportunities are provided to employees at all levels, from new

SUMCO established SUMCO Support Corporation, which gives

Childcare leave

1

11

12

awareness-raising activities are conducted on an ongoing basis

recruits to managers and executives, to encourage them to pursue

special consideration to employing people with disabilities, inNursing care leave

0

1

1

throughout the Group. At the meeting, the policy for activities forlifelong education and stay abreast of changing needs as well as

2004. In May the same year, SUMCO Support was designated as

the coming fiscal year is decided and shared so that activities

to develop them into individuals able to think and act independently.

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

based on that policy—including lectures by external experts andYoung engineers are also provided every year with an opportunity

people experiencing various challenges in their lives have foundtraining using audiovisual aids—will be carried out at each site andto present their research achievements to senior managements as

job opportunities and been employed in a wide range of areas,

Group company.

a means of enhancing their motivation.

both at SUMCO Support and various other Group companies.

Total

Occupational Safety and HealthManagement
We have introduced occupational safety and health management

Furthermore, to maintain a comfortable and pleasantTo pursue the SUMCO Vision of “Empower Employee

The SUMCO Group continues its efforts to fit the rightsystems (OSHMS) aimed at achieving zero accidents at various

working environment at all times, a workplace bullying consultation

Awareness of Profit,” the SUMCO CEO AWARD was establishedperson to the right job in order to help individual employees reach

workplaces. These systems are designed to prompt businessdesk is set up at each site where both male and female staff

as the SUMCO Group’s highest award. This award will betheir full potential as well as to provide employment opportunities

operators and workers to cooperate with each other to implement

members are available for consultation by anyone wheneverpresented every year to individuals and organizations that haveand maintain and improve supportive work environments forsafety and health management voluntarily and continuously

needed.

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

people with disabilities.

through an established PDCA (plan-do-check-act) cycle in order

In addition, with the revised Equal Employment Opportunity

Along with this award, the Group also holds presentations by up-

to prevent accidents and create a comfortable work environment

Law going into force from January 1, 2017, we are working toand-coming engineers and TPM teams annually in order to

Employment Ratio of People with Disabilities(SUMCO Group [Japan])promote understanding of issues surrounding pregnancy-related

recognize outstanding success.

harassment by providing training to employees about maternity
and paternity harassment.

Furthermore, in line with our aim to enhance “Competitivenessin Overseas Markets,” which is included in The SUMCO Vision, weMoreover, the SUMCO Group does not use child labor of

are working to develop a globally competitive human resources byany kind, and through daily work management, ensures theencouraging employees to become familiar with and respectabsence of forced labor.

different cultures and values as well as by enhancing programs for

We also ensure that both male and female employees

studying abroad and acquiring foreign language skills.

receive fair treatment and that the pay system is not gender-that will help enhance employee health. The systems are thus

(%)
2.3

2.22

2.2

2.0

1.99

Statutory employment
ratio since April 2013:
2.0%

2012

2013

2014

2015

2016

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

safety education, risk prediction, “pointing and calling,” as well as
the reporting of near miss.
We have conducted a stress check for each employee
across the Group since 2007 to promote the further improvement

biased.

Employment of Older Workers

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

SUMCO has a post-retirement scheme in place that allows
employees who reached mandatory retirement at age 60 to keep

(employees)

1,800

working for SUMCO with their high-level skills based on the

1,604

1,500
1,200

To prevent accidents and mitigate risks, SUMCO implements
risk assessments for facilities, operations, chemical substances,
etc. Various activities are also performed to ensure safety, including

Statutory employment
ratio until March 2013:
1.80%

1.8
1.7

health standards of our business sites.

2.01

1.9

instrumental in the continuous improvement of the safety and

2.26

2.11

2.1

Environmental
ReportUtilization and Development ofa Diverse Workforce

Social Activities
ReportHuman Resources Development

Site Data

Respect for Human Rights

CSR
Management

Interaction with Employees

employee’s willingness and wish. Employees reemployed under

1,344
983

1,057

1,153

the scheme can work until the age of 65.
Presentation by up-and-coming engineers900

Due to the amendment of the Act on Stabilization of
Employment of Elderly Persons enforced on April 1, 2013, we haveof the work environment.
In addition, there are no workplaces with a particularly highinherent risk of accidents or illnesses within the Group.
Accident Frequency Rate*
Manufacturing industry average(frequency rate)
1.09 1.12
1.20

gradually abolished the criteria limiting employees’ eligibility for

300

reemployment under a “transitional measure,” as defined in the

0.60

0

act, and reemployed all employees who wish to continue to work.

0.30

2012

2013

2014

2015

2016

(FY)

Childcare Leave and Nursing Care Leave
We support employees’ childcare and other family care
responsibilities by offering childcare leave, nursing care leave, andSUMCO CEO AWARD

1.06 1.06 1.06
0.99 0.98 1.05 1.00 0.94

0.90

600

*The fiscal year 2012 started in February 2012 and ended on January 31, 2013.
The fiscal year 2013 started in February 2013 and ended on December 31, 2013.
From fiscal year 2014, the fiscal year starts in January and ends on December 31.

SUMCO Group (Japan)

0.00

0.40

0.37

0.17

0.27

0.14
0

0

0.10

0.37

0

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 (year)*Accident frequency rate = Number of workers killed or injured in occupational
accidents / Total working hours × 1,000,000

special work arrangements for employees with a child aged under
three years old.

31 SUMCO Corporation CSR Report 2017

SUMCO Corporation CSR Report 201732

Year & month

AwardAwarded site

Company and improvement of working conditions.
Specifically, with the aim of maintaining business operations

March 2008

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

SUMCO TECHXIV Corp. Miyazaki Plant

October 2008

Japan Industrial Safety and Health Association Chairman’s Award

SUMCO Corp.

October 2008

Akita Pref. Labor Standards Association Chairman’s Award

Japan Super Quartz Corp.1

October 2008

Nagasaki Labor Bureau Director’s Commendation for Safety and Health

SUMCO TECHXIV Corp. Nagasaki Plant

each plant, plant managers and union representatives discuss

December 2008

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

SUMCO TECHXIV Corp. Nagasaki Plant

such issues as the production situation.

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,
Labor and Welfare Minister for Cooperation in Blood Donation

September 2009

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

SUMCO TECHXIV Corp. Miyazaki Plant

February 2010

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

SUMCO Corp. Kyushu Factory (Saga)

November 2010

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

SUMCO Corp. Kyushu Factory (Imari)November 2010

Letter of Appreciation from Japanese Red Cross Society

SUMCO Corp. Kyushu Factory (Imari)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, Labor 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

SUMCO Corp. Kyushu Factory (Saga)

October 2011

Nagasaki Labor Bureau Director’s Commendation for Safety and Health

SUMCO Corp. Nagasaki OfficeNovember 2011

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

SUMCO TECHXIV Corp. Miyazaki Plant

October 2013Federation of Labor 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

October 2013

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

SUMCO TECHXIV Corp. Nagasaki Plant

Item

3,501

SUMCO

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

167

7,520
Consolidated

information and promote communication.
Also, at labor-management meetings held once a month at

Temporaryemployees

Japan

5,319

Overseas

2,201

367

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

Furthermore, the Labor-Management Study Committee

Japan

5,319

North America

560

meets regularly throughout the year to discuss important issues

Southeast Asia

337

such as the improvement of working conditions and review ofEast Asia

1,284

various systems from multifaceted, holistic, and long-term

Europe20

perspectives, thus allowing labor and management to work closely

Total

7,520

Breakdown of Employees (Consolidated)

Nursery School toOpen on Company Premises

Managers

Generalemployees

Total
6,877

Male

763

6,114

Female

41

602

643

Total

804

6,716

7,520

day care service based on the Japanese government’s

In a bid to help employees with small children balance theirComprehensive Support System for Children and Child-work and child-rearing, the Company set up SUMCO Nursery

rearing. Accordingly, a portion of the capacity will be made

SUMCO Corp. Kyushu Factory (Kubara)

School Imari at our Kyushu Factory on November 1, 2016.

available to local residents who are not SUMCO employees.

SUMCO Corp. Kyushu Factory (Saga)

Through this initiative, SUMCO believes that it has taken

Looking ahead, SUMCO will promote a variety ofpositive steps to provide employees with small children ainitiatives in order to put in place a workplace environment in

comfortable and pleasant workplace environment. As a newwhich a diverse array of employees can excel while ensuring

way of contributing to society, the facility is also a community

harmonious coexistence with the local community.

Ministry of Health, Labor 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)June 2016

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

SUMCO TECHXIV Corp. Nagasaki Plant

October 2016

Excellent Safety Operations Facility Bronze Medal

SUMCO TECHXIV Corp. Miyazaki Plant

1

33 SUMCO Corporation CSR Report 2017

Regular employees

based on integrated efforts between labor and management, atogether to address various issues.

February 2014

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

Number of Employees (full-time equivalents)

CSR
Management

issues through discussion for the perpetual development of the

Safety and Health/Disaster Prevention Awards Received(as of the end of December 2016)

Environmental
Reportrelations based on mutual understanding and trust, and to solve

Social Activities
ReportSUMCO’s basic labor-management policy is to maintain soundEmployment Status

Site Data

Labor-Management Relations

Photos provided by: Saga Shimbun Co., Ltd.

SUMCO Nursery School Imari

Opening ceremony

The Company’s CEO and COO
visiting the facility

Christmas party

SUMCO Corporation CSR Report 201734

Si te 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, 2017

January 11, 2017

January 11, 2017

Date ofrenewalJanuary 11, 2017

January 11, 2017

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 86 (150)

Boiler 48 (150)

Boiler 70 (110)

Nitrogen oxides (NOx)ppm

Boiler 48 (260)

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

ND (K-value regulation 17.5)

ND (K-value regulation 17.5)/

Sulfur oxides (SOx)m3N/h

0.34 (K-value regulation 9.0)/

Soot and dust

g/m3N

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

Soot and dust

g/m3N

Boiler 0.004 (0.3)

Boiler / ( / )

Water

1

Air

Regulation
value

Measurement
resultRegulation
value

Measurement
resultRegulation
value

Measurement
resultBiological oxygen demand (BOD)

mg/l

/

/1

/

/1

10

4.5

Chemical oxygen demand (COD)

mg/l

30

14.3

30

9.2

/

/

Suspended solids (SS)

mg/l

30

14

30

4

25

5

N-hexane extract

mg/l

5

ND

5

ND

3

ND

Iodine consumption

mg/l

/

/

/

/

/

/

Fluorine and its compounds

mg/l

8

5.1

8

3.51

3

0.9

Ammoniac nitrogen

mg/l

Nitrate nitrogen

mg/l

Nitrite-nitrogen

mg/l

Nitrogen content (T-N)

mg/l

120

41

120

25

60

17.3

Chromium content (T-Cr)

mg/l

0.2

ND

0.2

ND

0.2

ND

Phosphorus content (T-P)

mg/l

12

0.14

12

0.22

8

0.89

Arsenic

mg/l

0.05

ND

0.05

ND

0.1

ND

Trichloroethylene

mg/l

0.1

ND

0.1

ND

0.1

ND

80

16

80

31

100

9.7

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

35 SUMCO Corporation CSR Report 2017

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

20.3

600

26

Chemical oxygen demand (COD)

mg/l

20

16.8

/

/

Suspended solids (SS)

mg/l

50

12

600

35

N-hexane extract

mg/l

3

ND

5

ND

Iodine consumption

mg/l

/

/

220

10.1

Fluorine and its compounds

mg/l

8

6.3

8

4.4

Ammoniac nitrogen

mg/l

Nitrate nitrogen

mg/l

100

9.4

380

200

Nitrite-nitrogen

mg/l

Nitrogen content (T-N)

mg/l

30

19

/

/

Chromium content (T-Cr)

mg/l

1

ND

0.5

ND

Phosphorus content (T-P)

mg/l

2

0.2

/

/

Arsenic

mg/l

0.05

ND

0.1

ND

Trichloroethylene

mg/l

0.1

ND

0.1

/

Site Data

Status of acquisition of
ISO 14001 certification

Environmental
ReportName of business site/plant

CSR
Management

2016 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 Law. For this reason, the regulation value for fluorine compounds is 8 mg/l.

SUMCO Corporation CSR Report 201736

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

Japan Quality Assurance Organization

Examiningorganization

Japan Quality Assurance Organization

Japan Quality Assurance Organization

Date ofacquisition

January 11, 1999

January 11, 1999

Date ofacquisition

January 11, 1999

January 11, 1999

Date ofrenewalJanuary 11, 2017

January 11, 2017

Date ofrevisionJanuary 11, 2017

January 11, 2017

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 96 (260)

Boiler 73 (150)

Sulfur oxides (SOx)

m3N/h

/

/

Sulfur oxides (SOx)m3N/h

0.004 (K-value regulation 17.5)/

Soot and dust

g/m3N

Boiler / ( / )Firing furnace 0.09 (0.2)

Soot and dust

g/m3N

Boiler 0.01 (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

3.7

160

17

Biological oxygen demand (BOD)

mg/l

600

84.4

25

6.8

Chemical oxygen demand (COD)

mg/l

/

/

/

/

Chemical oxygen demand (COD)

mg/l

/

/

/

/

Suspended solids (SS)

mg/l

600

9

200

15

Suspended solids (SS)

mg/l

600

32

30

5

N-hexane extract

mg/l

5

ND

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

3.4

8

0.1

Fluorine and its compounds

mg/l

15

10.5

8

1.4

Ammoniac nitrogen

mg/lAmmoniac nitrogen

mg/l

Nitrate nitrogen

mg/l

Nitrate nitrogen

mg/l

380

91.9

100

7.6

Nitrite-nitrogen

mg/l

Nitrogen content (T-N)

/

/

100

3.2

Nitrite-nitrogen

mg/l

mg/l

/

/

120

5.9

Nitrogen content (T-N)

mg/l

240

103

120

3.5

Chromium content (T-Cr)

mg/l

2

ND

2

ND

Chromium content (T-Cr)

mg/l

2

ND

0.2

ND

Phosphorus content (T-P)

mg/l

/

/

16

0.28

Phosphorus content (T-P)

mg/l

32

0.32

16

0.03

Arsenic

mg/l

/

/

0.1

ND

Arsenic

mg/l

0.1

0.002

0.1

—

Trichloroethylene

mg/l

0.1

/

0.1

ND

Trichloroethylene

mg/l

0.1

ND

0.1

—

* 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.

37 SUMCO Corporation CSR Report 2017

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 soot and dust 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 2017

38

Note

Name of business site/plant

SUMCO Phoenix Corporation
Albuquerque Plant

SUMCO Phoenix Corporation
Phoenix Plant

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 ofrenewalJune 30, 2015

June 30, 2015

Measurement results(regulation value)

Measurement results(regulation value)

Status of acquisition of
ISO 14001 certification

Air
Nitrogen oxides (NOx)t/y0.92 (10.2)

12.8 (24.6)

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

0.28 (1.25)

PM10 (Particulate Matter)t/y0.07 (0.84)

1.08 (2.5)

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

0.05

Cyanide

mg/l

0.5

/

2

ND

Fluorine and its compounds

mg/l

36

/

/

/

Lead

mg/l

1.0

/

0.41

ND

Mercury

mg/l

0.004

/

0.0023

ND

Molybdenum

mg/l

2.0

/

/

/

Selenium

mg/l

0.46

/

0.1

ND

Silver

mg/l

5.0

/

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 Plant. The City of Albuquerque monitors the effluent discharge on a regular basis.

39 SUMCO Corporation CSR Report 2017

SUMCO Corporation CSR Report 201740

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