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1

Top Message

CEO & Chairman of the Board

Mayuki Hashimoto
Currently, many people around the world, such as medical professionals and workers engaged insupply of daily necessities and logistics, keep making all-out efforts day and night to prevent the
spread of COVID-19. SUMCO wishes to express our great respect and gratitude to all of those people
for the efforts, and sincerely prays for the early recovery of the infected people and the end of theinfection as soon as possible.
SUMCO Group has activated our BCP (Business Continuity Plan), and we are implementing allmeasures considered to be effective, including wearing masks and hand sanitization, full teleworkingof head office operations and large-scale meetings, restriction of business trips, and refraining fromnonessential and non-urgent outings.
Semiconductors are widely used in a large variety of electronic devices, including medical equipment
vital for human life, and communications equipment needed for telework and web conferences thathave expanded dramatically during the COVID-19 pandemic. As a company that plays a part in thesemiconductor supply chain, SUMCO is fully committed to fulfilling its responsibility for supplying
silicon wafers so that we can contribute to the fight against COVID-19.

2

Aspiring to Serve as a Good Corporate Citizen
Semiconductor devices are used in every facet of our lives, from information terminal devices such as
smartphones and personal computers, communications equipment and data centers that process andstore large volumes of information, home appliances including televisions and air conditioners,
through to automobiles, trains and other vehicles. Providing the technological base for such devices,silicon wafers can also be considered critically important as a key material in maintaining today's
standard of living. In addition, as global warming due to greenhouse gas emission causes theextreme weather and the rising sea level on a global basis, coexistence of CO2 reduction andeconomic growth is a critical issue for all humanity. The SUMCO Group supports energy-conservation,
spread of clean energy and greenhouse gas reduction and contributes to resolving social andenvironmental issues through our strong points including silicon wafers for power-saving devices,silicon wafers for IGBTs which are utilized for electric vehicles (EV) and hybrid vehicles and siliconwafers for power-management devices which are utilized for renewable energy generation systemsuch as solar power and wind power.
At the SUMCO Group, under our philosophy to contribute to the development of industry as well as tothe improvement of people's quality of life through the supply of silicon wafers, we strive to be agood corporate citizen and engage in CSR activities in accordance with the SUMCO CSR Policy.
This year we identified the materialities to be tackled on a priority basis to solve social issues andenhance corporate value sustainably while responding to the needs of our stakeholders. Moving
forward, we will drive efforts to ensure our materiality targets are achieved and disclose theimplementation status and results.

Corporate Governance
The SUMCO Group endeavors to maintain fairness, efficiency and transparency in its management byfurther enhancing its corporate governance.
From March 2021, SUMCO adopted a Board of Directors structure comprising five directors who are
not Audit and Supervisory Committee members (one of whom is an Independent Outside Director)
and five directors who are Audit and Supervisory Committee Members (four of whom are
Independent Outside Directors). This structure is designed to further enhance the framework forauditing and supervising corporate governance and business execution. Additionally, with theappointment of persons with diverse backgrounds as Independent Outside Directors, lively
discussions contributing to SUMCO’s sustainable growth and the enhancement of corporate value inthe medium and long term are taking place in Board of Directors meetings.

3

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

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

Environmental Conservation Efforts
The production of silicon wafers requires a great deal of electricity, water and chemical substances.
For this reason, the SUMCO Group has established environmental targets, and strives to reduce its
use of each of these as well as the amount of industrial waste generated.
In April 2021, SUMCO declared our support to the Recommendations of the Task Force on Climaterelated Financial Disclosures (TCFD), and in June 2021, we made disclosure in accordance with the
TCFD framework.
The SUMCO Group also ensure the thorough management and handling of harmful chemical
substances and waste, and make every effort to minimize the environmental risks resulting from ourbusiness activites.
We also ensure the thorough management and handling of harmful chemical substances and waste,
and make every effort to minimize the environmental risks resulting from our business activities.

4

Health and Productivity Management
Based on a commitment to give top priority to the safety and health of our employees, we view theirhealth as a critical management resource and have reinforced measures for health and productivity
management since 2017.
In March 2021, continuing from last year, SUMCO and six SUMCO Group companies were certified
under the large enterprise category of the 2021 Certified Health & Productivity Management
Outstanding Organization Recognition Program (White 500).
The SUMCO Group aspires to promote various CSR activities while endeavoring to fulfill its social
responsibilities to the stakeholders who support us by actively reflecting their views and wishes,
which are grasped through various types of dialog with stakeholders, in our management activities.
Relationships with Stakeholders
SUMCO endeavors to fulfill its responsibilities to stakeholders, who support our business activities.

5

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

1. World's Best in Technology
SUMCO's technological capabilities and abilities to ensure stable supply of
products has earned high praise from customers, and has been officiallyrecognized by many semiconductor manufacturers with excellent supplierawards.
In December 2020, we received the Excellent Performance Award for theseventh consecutive year from Taiwan Semiconductor Manufacturing Co.,
Ltd. (TSMC), the world’s largest foundry. We also received the Preferred
Quality Supplier (PQS) Award. This is the 22nd time and 20th consecutive
year that we receive prestigious awards from Intel, the world’s top
semiconductor manufacturer. Based on this strong recognition, we will

Excellent PerformanceAward from TSMC

continue to promote collaboration with our customers based on long-term commitment and mutual
trust, and focus on further improving our technical capabilities.

2. Deficit-Resistant Even during Economic Downturns
The silicon wafer market ischaracterized 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 working toachieve a revenue structure that avoids
deficits even during economic
downturns, and we are striving to
improve our earnings.
Through continuous efforts in cost
reduction, quality improvement andproduct differentiation from competitors,
we will further strive to establish a
corporate structure to ensure higher earnings.

6

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

share the management issues facing the Group in the current(by Michiharu Takii, Vice Chairman)

business environment change.
(In 2020, in consideration of COVID-19, presentations for all employees were streamed.)
We also recognize that without high levels of
employee motivation, we will be unable torealize the SUMCO Vision of becoming "World's
Best in Technology" and "Deficit-Resistant Even
during Economic Downturns." The SUMCO
Group works to boost employee motivation by
establishing a variety of award systems toappropriately recognize and reward employees'
efforts and achievements.
Moreover, with the aim of cultivating aworkplace in which all employees can work
comfortably, SUMCO has been pursuing
initiatives to help employees strike a balance

Employees of SUMCO Phoenix Corporation

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

74. Competitiveness in Overseas Markets
In addition to Japan, the SUMCO Group has plants in the United States, Taiwan and Indonesia, as
well as a network of sales offices in various parts of the world, allowing us to supply silicon wafers tosemiconductor manufacturers around the world. Nearly 80% of our sales come from the overseas
market and we are proud to count all of the top 10 global companies in semiconductor sales among
the customers of the SUMCO Group. The solid and longstanding relationships of trust developed withthese customers represent a significant advantage to the SUMCO Group, and to further reinforce thisadvantage, we actively cultivate talented global human resources regardless of nationality.
Global top 10 companies in semiconductor
sales (2020)

Sales composition by region* Excludes Fabless, includes Foundry
Created by SUMCO based on various sources anddatabases

To ESG-oriented Investors

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

Main Goals of the SDGs and SUMCO's Initiatives

9

Contributing to the SDGs through our products
SUMCO Products that Support Our Lives

Contributing to the digital infrastructure supporting ourdaily lives
Silicon wafers that serve as the basic materials forsemiconductor devices used in a wide range of areas
including communications equipment, automobiles, digitalappliances, medical equipment and urban infrastructure
Creating innovation
Silicon wafers that support the miniaturization ofsemiconductors to usher in an era of industrial and technicalinnovation, and the utilization of big data, through IoT, AI
and robots

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

Contributing to improved energy efficiency
Silicon wafers for power-saving devices
Contributing to curb greenhouse gas emissions
Silicon wafers for IGBTs which are utilized for electricvehicles (EV) and hybrid vehicles (HV, PHV)
Silicon wafers for power-management devices which areutilized for renewable energy generation system such as
solar power and wind power.

10

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

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

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

Support activities for welfare institutions and otherfacilities
Support for a vocational facility for people with disabilities
Participation in emergency drills at welfare institutions

Support for education
Interaction with local educational institutions
Provision of programs
Provision of scholarship programs

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

To ESG-oriented Investors

12

Materiality (Key Issues)
As materialities, SUMCO identifies those issues it will address on a priority basis to solve social issues
and enhance corporate value in a sustainable manner while responding to demands fromstakeholders.
A consensus has formed that companies should work to address global environmental (E), social (S)and governance (G) issues, and this is also met with rising expectations from investors. Having
grasped these social changes, SUMCO proceeded with steps in the identification process andidentified ten issues.
Moving forward, SUMCO will work to ensure promotion with the aim of achieving the materiality
goals while disclosing the implementation status and results to stakeholders.

The Materiality Identification Process

13

14

SUMCO Materiality

Environmental (E)Materiality

Combatting Global
Warming

Social (S)Material Issue

Governance (G)Reasons for Identification

ThemesReduction of CO2

Reducing the environmental impact in our business activities is aemissions

corporate responsibility for the future.
To ensure that our irreplaceable global environment is passed on to the

Resource
Conservation
E

Activities

next generation, the SUMCO Group has developed an environmental
Effective utilizationof water resourcesmanagement system and obtained ISO 14001 certification for all of its
plants.
We also conduct environmentally friendly production activities including
the prevention of global warming, the effective utilization of water
resources and the reduction of waste and emissions.

Contributing to thecreation of a

Waste

recycling-oriented

management

society

To prevent global warming, we have set and are working on the longterm goal of reducing CO2 emissions by 14.9% by 2030 (compared with2014 levels).

Prevention ofoccupational
accidents
Health, hygiene

Under the principle that "the safety and health of employees take thehighest priority over all," the SUMCO Group is committed to "creating asafe and pleasant workplace environment supporting good mental andphysical health" through active communication in which all parties
participate.

and safety
Initiatives

Maintenance of
health andproductivityS

management

On safety, we work to maintain and improve our occupational safety
management system with the aim of creating a safe workplace free fromoccupational accidents, and with regard to health management, activities
are focused on the three issues of mental health, smoking cessation andlifestyle habits.

To be the "World's Best in Technology" and "Empower Employee
Awareness of Profit" as declared in the SUMCO vision, we will continue to
Human resources

Enhancement ofdevelopmenttraining

invest in human resources and make enhancements to our careerdevelopment program.
We will enhance training opportunities with a multi-faceted approach thatcovers everyone from new employees to managers and officers.

15

Materiality

Material Issue

Reasons for Identification

Themes

The source of enhanced corporate value is R&D and technologicalcapabilities that support customer value creation through our "invisible
Contributions as adevelopment
partner

assets," and as a development partner to customers, SUMCO enjoys ahigh global market share in cutting-edge products.
Moreover, we will contribute to the achievement of the SDGs, which aresocial issues affecting the entire world, by supporting advances insemiconductors.

R&D andtechnologicalcapabilities

To continually maintain our "first call" status as a company, we value close

supporting

communication with customers.

customer value
creation

By quickly providing customers with the products that meet their needs
Increasing

while continuing with performance checks and follow-ups, we build robust

customer

relationships of trust.

satisfaction
We analyze the information customers provide through QCDS (quality,
cost, delivery and service) evaluations, share the insights withmanagement and relevant departments, direct what we have learned into
improvement activities and strive to improve customer satisfaction levels.

We believe it is important to share CSR-related societal demands with ourSPromoting firm
establishment of
the CSR
Procurement Policy

suppliers and jointly tackle issues in the supply chain such as humanrights, labor, safety, the environment and ethics.
We share the SUMCO CSR Procurement Policy with suppliers throughbriefing sessions, audits and other activities, and promote responsible
procurement activities.

Promoting CSR
procurement andmitigating

Supply chain risk management is an important issue and a theme to

procurement risks

which customers also have high levels of interest.
Strengthening BCP
in materials
procurement

SUMCO secures appropriate levels of inventory in line with risks, pursues
advance preparations such as ensuring multiple procurement sources
under normal circumstances, and has established the necessary systems
to minimize the impacts on production in the event of a disaster or
accident.

We fully recognize that the timely and appropriate disclosure of corporate
information to investors forms the basis of a sound stock market and have
Communication
with shareholders
and investors

adopted the basic policy of continually ensuring the prompt, accurate andEnhancement of IR

fair disclosure of corporate information from the perspective of investors.

activities
We proactively disclose any information that is beneficial to investment
decisions, such as medium-to-long-term demand forecasts for the siliconwafer market based on end product demand forecasts.

16

Materiality

Material Issue

Reasons for Identification

Themes

The silicon wafer business is a critical industry supporting an IT-basedsociety, and the SUMCO Group is responsible for ensuring the stablesupply of silicon wafers to the world's semiconductor device
Enhancing risk

Initiatives tomanagement

develop BCP

manufacturers.
The Business Security Committee (BSC), which is an organization
responsible for risk management, promotes risk management activities
while working to improve business continuity and the ability to respond inan emergency through periodic training.

G
Ensuring compliance with laws, regulations and social norms to beobserved forms the basis for SUMCO fulfilling its social responsibilities andOngoingis also essential for the sustainable growth of corporate value.

Promotingenhancement ofcompliancecomplianceTraining on topics including the SUMCO Charter of Corporate Conduct,awareness

which prescribes the norms to be observed by employees, is conducted
regularly for all employees as part of ongoing efforts to strengthenawareness of compliance.

17

SUMCO Materiality Targets

Materiality
Combatting Global
WarmingResource
E

Conservation
Activities

Material Issue

Targets

ThemesReduction of CO2

By 2030, reduce CO2 emissions (Scope 1+2) per unit by 14.9%

emissionscompared with 2014 levels (average reduction of 1% every year)

Effective utilizationof water resourcesHigh and stable water recycling rate

Contributing to thecreation of a

Waste

recycling-oriented

management

Conversion of waste into valuable resources and improved recycling ratesociety
Prevention ofoccupational
Health, hygiene
and safety
Initiatives

Accident frequency rate of 0.2 or lower

accidents
Maintenance of
health andMaintaining certification in the Health & Productivity Management

productivity

Outstanding Organization Recognition Program (White 500)

management
Human resources

Enhancement of

Increasing training time compared with the previous year by utilizing

developmenttraining

web-based training

R&D andContributions as atechnologicalcapabilities
S

supporting
customer value
creationdevelopment

Maintaining a worldwide share or over 50% in cutting-edge fields

partner
Increasing
customer

Maintaining high evaluation with the leading customer satisfaction scoresatisfaction
Promoting firm

Promoting CSR
procurement andmitigatingprocurement risks

establishment of
the CSR
Procurement Policy
Strengthening BCP
in materials
procurement

Communication
with shareholders
and investors

G

Holding briefing sessions for suppliers and conducting CSR audits

Enhancement of IR
activities

Enhancing risk

Initiatives tomanagement

develop BCPContinuing to maintain multiple procurement sources and implementing
supplier safety training

Maintaining the number of IR activities for investors

Implementing BCP training

Ongoing
Promotingenhancement ofcompliancecompliance

Implementing compliance education

awareness

To ESG-oriented Investors
18

(PWFSOBODF$PSQPSBUF(PWFSOBODF ˘˘˘˘˘˘˘˘˘˘˘ $PNQMJBODF ˘˘˘˘˘˘˘˘˘˘˘˘˘˘˘˘ 
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19Corporate Governance
Why SUMCO Tackles Corporate Governance
SUMCO recognizes that it is a critical management challenge to fulfill its mandate fromshareholders by achieving sustainable growth and improving corporate value in the medium-tolong-term, while building and maintaining positive relationships with other stakeholders. Basedon this recognition, SUMCO pursues a range of measures related to corporate governance, suchas reinforcing the auditing and supervisory functions of the Board of Directors, ensuring
efficiency in how directors execute their duties and improving internal controls within the
SUMCO Group, in order to achieve swift management decision-making and to ensuretransparency and fairness in the execution of business.

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

Corporate Governance Structure20

Board of Directors
SUMCO's Board of Directors comprises internal directors with a proven record of performance in theirrespective areas of responsibility and outstanding management abilities, along with Outside Directors
with expert knowledge and extensive experience, based on the basic stance of the Company toensure an overall balance and diversity in knowledge, experience and capabilities of the directors.
The Board of Directors comprises five directors (except for directors who are Audit & Supervisory
Committee Members; one of whom is an Independent Outside Director) and five directors who aremembers of the Audit & Supervisory Committee (four of whom are Independent Outside Directors).
In accordance with legal statutes, the Articles of Incorporation and the Rules of the Board of
Directors, the Board of Directors makes decisions on management strategy, management plans, andother such important matters relating to business. It receives reports from every Director on thestatus of the execution of duties and it exercises supervision of compliance, internal controls, risk
management, and important business execution at affiliated companies. With the participation of
Independent Outside Directors, the Board of Directors also engages in the free exchange of opinions
regarding the appropriate evaluation of company performance and related matters, and reflects that
evaluation in the personnel administration of senior management members.
It is also our basic company policy that matters relating to financial results and so on, mattersrelating to management plans, and the execution of other such important operations should be
decided after adequate discussion by the Board of Directors, including the Independent Outside
Directors. For this reason, the Articles of Incorporation do not stipulate that decisions on theexecution of important business can be delegated to each Director.
The effectiveness of the Board of Directors is evaluated each year in order to continually enhance theeffectiveness of corporate governance.
In fiscal year 2020, the Board of Directors met 16 times to discuss important matters concerning
management, address issues identified in the Board of Directors effectiveness evaluation conductedin the previous fiscal year, and discuss the compensation policy and method for determining
compensation of Directors (except for Directors who are Members of the Audit & Supervisory
Committee) and the amount of compensation for individuals.

21

Directors

Director(*1)
Chairman of the Board

Mayuki Hashimoto

Director(*1)

Michiharu Takii

Director(*1)

Hisashi Furuya

Director(*1)

Kazuo Hiramoto

Director(*2)

Akane Kato

Director,
Full-time Audit and Supervisory

Fumio Inoue

Committee member
Director(*2),
Audit and Supervisory Committee member
Director(*2),
Audit and Supervisory Committee member
Director(*2),
Audit and Supervisory Committee member
Director(*2),
Audit and Supervisory Committee member

Hitoshi Tanaka

Masahiro Mitomi

Shinichiro Ota

Akio Fuwa(*1) Representative Director(*2) Independent Outside Director

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

Audit and Supervisory Committee
The Company's Audit and Supervisory Committee is made up of five directors who are Audit andSupervisory Committee Members (four, a majority, of whom are Independent Outside Directors). In
order to ensure the effectiveness of Audit and Supervisory Committee activities, permanent Audit
and Supervisory Committee Members are put in place by mutual voting among Audit and Supervisory
Committee Members. In addition, it is the Company's basic policy to take steps to ensure that atleast one Audit and Supervisory Committee Member has considerable knowledge and experience
pertaining to finance and accounting. Currently, this is Mr. Masahiro Mitomi, who is also a certified
public accountant. Additionally, the Company has established the Audit and Supervisory Committee
Office and assigns staff to support the activities of the Committee and facilitate the smooth
performance of its audit and supervisory functions.
The Audit and Supervisory Committee exercises its statutory right of investigation and audits the
Directors' execution of their duties from the viewpoints of appropriateness and conformance withlaws and regulations and the Articles of Incorporation by inspecting and confirming the status ofcompliance with laws and regulations, Articles of Incorporation, and so on, and by monitoring andotherwise supervising the development of and operational status of the system of internal controls,
including the internal control of financial reporting.
23

Nomination and Remuneration Committee
In an effort to further enhance its corporate governance, SUMCO has established a Nomination andCompensation Committee composed of two Representative Directors (Directors Mayuki Hashimotoand Michiharu Takii) and two Independent Outside Directors (Directors Hitoshi Tanaka and Masahiro
Mitomi) to serve as a discretionary advisory body for the Board of Directors. The Nomination andCompensation Committee receives requests from the Board of Directors for advice on the process forselection of candidate directors of the Company, their qualifications, the reasons for their designationas candidates, the structure of remuneration for Directors (excluding Directors who are Audit andSupervisory Committee Members) and Executive Officers, and related matters. The committee
deliberates on the appropriateness and other aspects of the matter referred and, also taking
evaluations of the Company’s performance into account, delivers its advice. The Board of Directors,
receiving the findings of the Nomination and Compensation Committee, designates candidate
Directors, and decides on the remuneration for Directors (excluding Directors who are Audit andSupervisory Committee Members) and related matters.
The Nomination and Compensation Committee convened three times in fiscal year 2020, with full
attendance each time. The main activities undertaken by the Nomination and Compensation
Committee are as follows:

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

24

Message from an Outside Director
Outside Director
Akane Kato
Nov. 1984 Joined ALL NIPPON AIRWAYS CO., LTD.
Jul. 1994 Instructor, Inflight Services Training Dept., Inflight Services
Center, ALL NIPPON AIRWAYS CO., LTD.
Jul. 2007 Chief, Training Div., ANA Learning Co., Ltd. (the current ANA
Business Solutions Co., Ltd.)
Apr. 2012 Manager of VIP Service Dept., Tokyo Airport Branch, ALL NIPPON AIRWAYS CO., LTD. (the current
ANA AIRPORTSERVICES CO., LTD.)
Jul. 2014 Representative Director of AKANE IDENTITIES INC. (present post)
Jun. 2016 Outside Director of SAN-EI Corporation (present post)
Apr. 2018 Part-time Lecturer of Toho College of Music (present post)
Aug. 2019 Registered as a Career Consultant
Mar. 2020 Outside Director of the Company (present post)

Fiscal year 2020, when I was appointed as an outside director, began in an unprecedented
environment in which the first priority was preventing COVID-19 infection. With the effects ofthe pandemic continuing to this day, causing many kinds of uncertainty in the global economy,
employment, and livelihood itself, the semiconductor industry has an important role to play insupporting the “new normal” that life has become.
SUMCO moved quickly to ready the Company for the pandemic. In my judgment, themanagement has united to maximize leading-edge product development, production, andprofitability, steering the Company toward sustainable administration. In such ways theCompany is very much oriented toward the goal in the SUMCO Vision of becoming DeficitResistant Even during Economic Downturns.
At the same time, a close eye needs to be kept on trends in M&A involving the world’s siliconwafer manufacturing companies, and the rapid advance of technology innovation. To continuebuilding a greater competitive advantage, fulfilling the role of the World’s Best in Technology,
management and front-line employees will need to redouble their efforts in close coordination.
During the current fiscal year as well, with the aim of further growth toward Empower
Employee Awareness of Profit on the foundation of mutual understanding, accepting of diverse
work styles and values, I would like to fulfill my role of passing along the voices of
stakeholders.

25

Message from an Outside Director
Outside Director
Hitoshi Tanaka
Apr. 1976 Registered as Attorney at Law Joined
Narutomi Law Office (the current Marunouchi Minami Law Office)Oct. 2003 Representative of Narutomi Law Office (present post)
Apr. 2005 Outside Corporate Auditor of the Company
Jun. 2014 Outside Director of TOKYO ENERGY & SYSTEMS INC. (present
post)Mar. 2016 Outside Director (Audit and Supervisory Committee Member) of the Company (present post)

Owing to the COVID-19 pandemic, many meetings including those of the Board of Directors
have had to be held online. With online meetings, if the main screen is used to show materials,
the expressions of the speakers and participants are not readily made out; and if faces areshown instead, the materials cannot be seen, making for an inconvenient situation. In face-toface meetings, mutual understanding is facilitated by being able not only to understand what issaid, but to pay attention to the expressions on the faces of meeting participants and to theirbody language.
Efforts are being made to reduce the inconvenience of online meetings to a certain extent,such as by being sure to send and examine materials in advance and making it easier todiscern the expressions of participants on the screen. To help overcome the deficiency inmutual understanding from not being able to hold face-to-face meetings, monthly sessions areheld for explanations by senior management to outside directors on Company issues andquestions raised by outside directors, ensuring that candid exchanges of views take place.
These sessions are not only useful for communicating views, but are excellent opportunities foroutside directors to learn about the Company’s situation, and I believe are highly effective in
helping us to fulfill our role.
It is my hope that as the number of COVID-19 cases declines and the vaccination program isrolled out, the Company will be better able to carry out its business. For my part, I will bewatching these developments carefully.

26

Board of Directors/Audit & Supervisory Committee Meetings in Fiscal
Year 2020
Board of Directors
Name
Mayuki

Audit & Supervisory Committee

Times Attended/
Times Held

Name

Attendance

16/16

100%

Michiharu Takii

16/16

100%

Hisashi Furuya

16/16

Kazuo Hiramoto
Akane Kato(*)

HiroshiTimes Attended/
Times Held

Attendance

13/13

100%

Atsuro Fujii

10/10

100%

100%

Hitoshi Tanaka(*)

13/13

100%

16/16

100%

Masahiro

13/13

100%

13/13

100%

16/16

100%

Shinichiro Ota(*)

13/13

100%

Akio Fuwa(*)

13/13

100%

Atsuro Fujii

13/13

100%

Hitoshi Tanaka(*)

16/16

100%

16/16

100%

Shinichiro Ota(*)

16/16

100%

Akio Fuwa(*)

16/16

100%

Hashimoto

Hiroshi
Yoshikawa

Masahiro
Mitomi(*)

Yoshikawa

Mitomi(*)(*) Independent Outside Director

27

Executive Remuneration

Matters regarding policy regarding amounts of remuneration and otherpayments to officers and determination of calculation method
Details of the Remuneration Policy
The Company employs a system where the remuneration of Directors (excluding Directors who are
Audit and Supervisory Committee Members and Non-executive Directors) are determined with a viewto encouraging them to contribute to the improvement of business results and the enhancement ofcorporate value. Remuneration for the Directors are within the total amount determined by resolutionof the General Meeting of Shareholders, and comprises a fixed remuneration level based on theiroffice and rank, and a factor linked to the Company’s most recent business results. The Company
regularly reviews the remuneration level to reflect the long-term performance. The Company has not
adopted a system of using its stock as a payment of remuneration for Directors, but pursues
management that seeks to urge the Directors to contribute to the improvement of business results
and enhancement of the corporate value over the medium- to long-term by encouraging theacquisition and holding of the Company’s stocks through the Officers Shareholding Association.
SUMCO has judged that it is appropriate to use the semi-annual net-income attributable to owners of
the parent as an index for remuneration linked to the Company’s business results and finalizes theamount in accordance with the calculation method and taking into account the individual assessment.
The results of the index pertaining to results-linked remuneration of Directors (excluding Directors
who are Audit and Supervisory Committee Members) for fiscal year 2020 are 16,821 million yen in
total for the first and second quarters and 8,683 million yen for the third and fourth quarters.
The Directors who are Audit and Supervisory Committee Members receive only a fixed remunerationfrom the perspective of ensuring the appropriate conduct of their duties such as auditing and thesupervision of the execution of business operations. The remuneration is determined throughdeliberations of the Audit and Supervisory Committee Members within the total amount determinedby resolution of the General Meeting of Shareholders, and takes into account the role and duties ofeach such director and whether he or she is a full-time or part-time member.

28Remuneration Determination Process
The amounts of remuneration and other payments to Directors (excluding Directors who are Audit
and Supervisory Committee Members) and their calculation methods are discussed by the
Nomination and Compensation Committee comprising two representative directors and two
independent outside directors and finalized with the resolution by the Board of Directors. The
Nomination and Compensation Committee, in response to the consultations by the Board of
Directors, discusses the appropriateness of the compensation structure, etc. of the Company’s
directors and submits a report to the Board of Directors also taking into consideration an evaluationof the Company’s business results. Upon receiving the report from the Nomination and Compensation
Committee, the Board of Directors determines remuneration and other payments to Directors(excluding Directors who are Audit and Supervisory Committee Members).
In fiscal year 2020, after discussions and considerations by the three Nomination and Compensation
Committee meetings in accordance with the above procedures, the Board of Directors meeting heldon April 28, 2020 resolved on the policy and determination method of remuneration and otherpayments to directors as recommended by the Nomination and Compensation Committee, and theBoard of Directors meetings held on June 30 and December 25 approved the individual amounts
taking into consideration the semi-annual business results.

29

Amount of remuneration in the recent fiscal year (disclosure by officer
category)
Remuneration for Directors for fiscal year 2020
Total amount of remuneration and other

NumberOfficer category

Total amount of

payments by type (thousands of yen)ofofficers

Basic remuneration

remuneration andother payments

Results-linked(thousands of yen)remuneration

Directors [excluding Directors who
are Audit and Supervisory
Committee Members]

5

250,494

40,348290,842(1)(7,200)(-)(7,200)6

86,532-86,532(4)(38,400)(-)(38,400)(of which, Outside Directors)
Directors who are Audit andSupervisory Committee Members(of which, Outside Directors)
Total

11

337,026

40,348377,374(of which, Outside Directors)(5)(45,600)(-)(45,600)(Notes)1. The upper limit of the total remuneration for all directors (excluding Directors who are Audit andSupervisory Committee Members) is 460 million yen annually (excluding employee salary)pursuant to the resolution at the 17th Ordinary General Meeting of Shareholders held on March
29, 2016.

2. The upper limit of the total remuneration for all Directors who are Audit and Supervisory
Committee Members is 110 million yen annually pursuant to the resolution at the 17th Ordinary
General Meeting of Shareholders held on March 29, 2016.
3. As of the end of fiscal year 2020, there were five (5) Directors (excluding Directors who are Audit
and Supervisory Committee Members) and six (6) Directors who are Audit and Supervisory
Committee Members.

To ESG-oriented Investors

30

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

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

31

SUMCO CSR Policy
1. Supported by its cutting edge technology, SUMCO shall steadily provide products andservices with excellent quality, ability and safety, shall win customers' satisfaction andtrust, and shall contribute to the sustainable development of society.
2. SUMCO shall produce legitimate profits, grow corporate value, proceed with timely
and appropriate disclosure to the public, and aim at returns to its shareholders andinvestors.
3. SUMCO shall comply with laws and regulations, international rules, and social norms,
shall implement risk management, and shall maintain business continuity.
4. SUMCO shall choose its suppliers by fair and rational standards, establish mutual
confidence, and prosper together.
5. SUMCO shall manage environmental activities, make use of resources and energy
efficiently, and control emission.
6. SUMCO shall maintain safe, healthy, comfortable and appropriate workplaces foreverybody working in SUMCO, shall have a high regard for human rights, ability andpersonality, and shall realize fair and diverse ways of working.
7. SUMCO shall respect various cultures and histories, and shall interact with society andlocal communities.

32

Fair Business Activities / Anti-Corruption
SUMCO is committed to promoting fair business activities and preventing bribery and other forms ofcorruption, and the SUMCO Charter of Corporate Conduct clearly provides for legal compliance,
prohibition of unfair competition and improper transactions, comprehensive anti-corruption measures
such as prohibiting any wrongful provision of proﬁts to public servants and other oﬃcials, andprevention of insider trading.
To promote fair business practice and prevent corruption in particular, the Regulations on Handlingthe Grant of Beneﬁts prohibit (1) unlawful political contributions and donations; (2) entertainment or
gifts in connection with the duties of public servants; (3) ﬁnancial beneﬁts in connection with theexercise of shareholders' rights; (4) excessive entertainment, gifts or other such beneﬁts that exceedcommonly accepted bounds in society; and any unlawful beneﬁts as well as the entire range oftransactions that are recognized as wrongful or improper in light of what is commonly accepted insociety. The Regulations also deﬁne standards for making donations, providing sponsorship, paying
entertainment expenses, giving celebratory or condolence gifts, paying membership dues to externalorganizations, and outsourcing operations and ensure the implementation of them under anappropriate approval process. SUMCO also requires employees to avoid these behaviors whenengaging brokers and other agents.
SUMCO makes the Regulations on Handling the Grant of Beneﬁts available at all times on thecorporate intranet, and seeks to ensure all employees are fully aware of our policies on promoting fairbusiness practices and preventing corruption. We also provide training on the SUMCO Charter ofCorporate Conduct to thoroughly familiarize all oﬃcers and employees with it, and the status ofcompliance with these provisions is regularly reported to the Chief Compliance Oﬃcer.
Also note that to date, the SUMCO Group has not paid any ﬁnes or made any facilitation payments
stemming from political contributions or corruption, nor has the Group been penalized in any way
relating to corruption.

Internal Reporting System
SUMCO has introduced an internal reporting hotline which is available to all employees for reporting
any act in violation of the SUMCO Charter of Corporate Conduct, including conduct in violation of laws
and ordinances, human rights infringements and harassment, comprehensive corruptive act such asbribery and unfair competition, and improper transactions.
To ensure that employees can make reports with peace of mind, we have set up an in-house andexternal (attorney) contact points for internal reports as well as a “suggestion box” that goes straightto top management. Anonymous reports are accepted and all disadvantageous treatment including
retaliation against employees who make reports is strictly forbidden.
The Company makes every eﬀort to fully disseminate information about the internal reporting system
to employees. Information on how to use the hotline and about contact points for consultation are
posted at all times on the corporate intranet, and these matters are also explained during training on
the SUMCO Charter of Corporate Conduct which is conducted regularly for all employees.

33

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

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

Initiatives on Intellectual Property
As its basic policy, the SUMCO Group attaches importance to intellectual property and utilizes it as a
strategic tool for the Group's business, while at the same time respecting the intellectual property
rights of third parties. Based on this policy, we have set forth rules on how we obtain, maintain andutilize intellectual property and prevent infringements in the SUMCO Charter of Corporate Conduct
and Intellectual Property Regulations, and provide regular education on intellectual property mattersto employees. We also actively and continually pursue efforts to facilitate the effective utilization of
intellectual property, including an inventor commendation scheme designed to encourage invention
and improve the quality of patent applications. Obtained intellectual property rights are also reviewed
periodically to eliminate obsolete intellectual property so as to keep costs at a reasonable level.

34

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

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

To ESG-oriented Investors
35

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

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

36

SUMCO's Risk Management Framework

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

Major Risks Recognized in the Basic Rules on Risk Management
1. Risks Related to General Management
Examples: Contractual disputes, investment in new businesses
2. Risks Related to Accidents and Disasters
Examples: Earthquakes, wind and flood damage, water and electric power service
interruptions
3. Risks Related to Discontinuation of Business
Examples: Fire, equipment accidents, production impediments, disruptions to raw material
procurement
4. Risks Related to Compliance
Examples: Antitrust violations, violations of laws related to corruption and anti-corruption,
violations of employment and labor standards-related laws and ordinances, violations ofenvironmental regulations
5. Risks Related to Information
Examples: Leaking of trade secrets, network shutdowns
6. Risks Related to Intellectual Property
Examples: Infringing upon intellectual property rights or suffering infringement
7. Risks Related to Human Resources, Employment, and Human Rights
Examples: Labor issues, human rights violations, harassment, occurrence of scandals,
crimes and other incidents
8. Risks Related to Taxation and Accounting
Examples: Funding impediments, rapid exchange rate fluctuations
9. Risks Related to Products and Services
Examples: Quality issues, complaints
10. Risks Related to Safety and Health
Examples: Industrial accidents, outbreak of infectious disease
11. Risks Related to the Environment
Examples: Pollution, environmental accidents
12. Risks Related to Credit
Example: Bankruptcy of a customer37

2. Determining Policy with regards to Risk Countermeasures andReporting the Status of Such Countermeasures
Responsibility for each risk is allocated between departments according to the priority established in(1) above, and the policy on risk countermeasures is determined via discussion within a companywide committee known as the BSC (Business Security Committee). The BSC meets every year, withnot only the Chairman/CEO and other senior management in attendance, but also responsible
members of each department, factory, plant and group companies worldwide. It decides companywide policy regarding risk management, deliberates and determines risk prevention measures,
discusses responses on cross-department risks and new risk phenomenon and exchanges a broad
range of information about risk management in general.
BSC's Structure and Objectives

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

38

Ensuring Business Continuity
Our Basic Rules on Risk Management define business continuity as an important management issue,
and we have been working to develop and improve our BCP (business continuity plan) to ensurebusiness continuity.
The details of the BCP, and its state of improvements, the results of trainings and drills, and othermatters are reported on the BSC, and the BSC verifies the effectiveness of the BCP, and determines
policies on future action to be taken. Each department and group company improves the BCP further
according to the policies.
In 2020, we confirmed procedures to transfer head office operations elsewhere, the implementation
status of drills and exercises carried out by each department and issues to be addressed in the future
based on the assumption of a large-scale earthquake beneath the Tokyo metropolitan area whichleads the disfunction of Tokyo Head Office. These efforts were part of activities to further enhance
the BCP readiness of the head office.
In addition, we also regularly conduct integrated emergency response drills at each plant, which
include activities such as evacuation, firefighting, reporting, rescue, emergency relief andtransportation in the event of a disaster such as an earthquake. Continuous improvements are madeby identifying issues and reviewing procedures and other details after conducting the drills. We also
make efforts to stockpile the materials and equipment needed to ensure that production can beswiftly resumed in the event of a disaster.

Integrated Emergency Response Drill

Integrated Emergency Response Drill

39

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

First Aid Drill

Lifesaving Training40

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

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

Computer System-related Disaster Countermeasures
The Company has ensured redundancy for mission-critical and peripheral systems used on acompany-wide basis, establishes equivalent backup servers and performs data synchronization inorder to continue business operation even in the event that a server installation location is damaged
by a large-scale disaster such as a major earthquake.
We conduct regular drills on switching to backup servers to confirm our switchover procedures andother details.

41

Measures to Prevent COVID-19 Infections
Referencing infection prevention guidelines from the Ministry of Health, Labour and Welfare, various
academic groups and the Keidanren (Japan Business Federation), SUMCO has formulated the SUMCO
Group Infection Prevention Guidelines to deal with the spread of COVID-19 infections and implements
a range of measures to prevent infections.
Once vaccinations become available, we will encourage employees to get vaccinated and do ourutmost to further minimize the risks of infection.

Infection Prevention Measures
1. Newly established a special leave system for employees feeling unwell2. Infection prevention measures for employees during work
Employees are required to take their temperature before attending work and wear masks
during work
Measures to prevent droplet transmission at various in-house facilities (cafeterias, meetingrooms, offices, etc.), thorough disinfection, measures to avoid the three Cs
3. Utilization of remote meetings and telework
Thorough efforts to avoid business travel and dining together
Encouraging internal events, meeting and training be held online
Full telework at the Tokyo Head Office and sales offices in Osaka and Kyushu

42

VoiceKatsuhito Asahi, Unit Leader
Nagasaki Safety and Disaster Prevention Section, General
Affairs Department, SUMCO TECHXIV Corporation

Q. Please describe the status of implementation and the level of participationin the emergency response drills you conduct at the plant.
For integrated emergency response drills, we envisage a major earthquake measuring upper 6
on the intensity scale having occurred. With the disaster control headquarters comprised of key
executives and managers we mainly confirm the actions taken in the initial response. In recent
years we have focused the drills on confirming the safety of employees, searching for missing
people, conducting rescue and relief activities, providing emergency medical care and selecting
multiple safe evacuation routes from the perspective of placing the highest priority on human
life. In fiscal year 2019, more than 400 people in Nagasaki Plant took part in the drills, a figure
which suggests a heightened interest in disaster prevention among employees. We also
conduct late-night emergency response drills for shift workers, envisaging a scenario in which amajor earthquake strikes at night, including coordination with disaster-prevention centers .
Each year when we conduct our emergency response drills, we ask the local Omura Fire
Department to attend. In addition to reviewing the drills overall, the members of the fire
department offer valuable insight and guidance on where we need to improve from theirperspective as professionals. Moving forward, we will share these areas for improvement with
employees through internal meetings, continue to coordinate with the local community withthe aim of further raising our disaster mitigation and prevention levels, and ensure our capacity
for self-help, cooperation, and public assistance in times of disaster.

To ESG-oriented Investors

43

SUMCO Group Taxation Policies
Basic Approach
Based on the SUMCO Group mission to be the world’s No. 1 silicon wafer supplier by exceeding the
expectation of our customers and stockholders, by recognizing the value of our employees and being
good neighbors in communities, SUMCO Group shall conduct its business activities faithfully inaccordance with law and ethics, and shall fulfill its responsibility to society.
SUMCO Group understands that the proper payment of taxes in accordance with the relevant laws
and regulations of each country contributes to economic growth and development of society in eachcountry, and helps toward living up to the support and trust of all stakeholders.
SUMCO Group shall endeavor, in ways like the following, to achieve timely compliance with revisions
to the taxation system in each country and with trends in international tax frameworks, and toestablish a tax compliance framework that is suitable at all times.

Observance of Tax Laws
SUMCO Group shall always observe tax-related laws and regulations in each of the countries andregions where it does business and fulfill its tax obligations in all countries and regions.

Engagement in International Tax Frameworks
SUMCO Group understands that the OECD BEPS (Base Erosion and Profit Shifting) project and otherinternational initiatives are important undertakings for achieving tax transparency and preventing
international tax avoidance.
Along with observing the tax laws in each country, SUMCO Group shall therefore conduct its tax
affairs in accordance with the intent of international initiatives, endeavoring to ensure tax
transparency.
In transactions with related parties in other countries and regions, SUMCO Group shall consider Arm's
Length Price (ALP), and based on analysis of the functions, assets, and risks both between countries
and between subsidiaries, distribute earnings appropriately according to their contribution.

44

Thinking on Tax Planning
SUMCO Group understands that transactions without a legitimate business purpose or economic
rationality are an impediment to achieving tax transparency, and have the potential to harm theGroup business value and the interests of stakeholders including local communities.
SUMCO Group shall not conduct tax planning aimed at tax avoidance, such as the use of tax havens
by bogus entities having no business purpose.

Provision of an Internal Framework for Tax Compliance
SUMCO Group, understanding the importance of instilling and reinforcing awareness of tax
compliance in management and employees for the proper functioning of the tax complianceframework, shall seek to raise such awareness through education, information sharing, andconsultations on proper handling of tax affairs.
Moreover, seeing tax-related risk as a material risk for business administration, SUMCO Group shallidentify and analyze tax-related risk based on the risk management structure, and senior
management shall perform regular annual checks of the status in dealing with issues for risk
mitigation.

45

Establishment of Appropriate Relations with Tax Authorities
SUMCO Group shall comply with the tax administration procedures and tax collection procedures ofeach country. It shall maintain normal, sound relations with tax authorities and shall not provide
improper benefits.
Reference: SUMCO Group Income Taxes by Region

Income Taxes Paid
2017
(Billions of
Yen)

2018
(Billions of

%

Yen)

2019
(Billions of

%

Yen)

%

Japan

0.4

41%

4.7

70%

7.8

67%

Asia

0.5

50%

1.8

27%

3.8

32%

North America & Europe

0.1

8%

0.2

3%

0.1

1%

Total

1.0

100%

6.8

100%

11.7

100%

To ESG-oriented Investors

46

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

SUMCO Environmental Policies
1. Basic Environmental Philosophy
As a manufacturer of high-quality silicon wafers for semiconductors and of quartz
crucibles, SUMCO has established the following action guidelines and is committed toself-initiated and sustained environmental conservation activities to pass on the Earth's
irreplaceable environment to future generations.
2. Environmental Action Guidelines
1. Through our business activities, we shall pursue activities with an emphasis on thefollowing points.
(1) We shall act to conserve electricity and other energies consumed by our businessactivities, thereby curbing emissions of greenhouse gases.
(2) We shall strive to reduce waste and increase recycling and reuse rates.
(3) We shall strive to reduce and recycle water used in our business activities.
(4) We shall strive to reduce chemical substances used in our business activities.
(5) We shall thoroughly manage the harmful chemical substances and waste, thereby
reducing the risks to the environment.
2. We shall abide by environment-related laws and regulations, bylaws, and other agreed
requirements.
3. We shall strive to prevent environmental pollution in our entire business activities andundertake efforts to protect the global environment and coexist in harmony with local
communities.
4. We shall promote green procurement with our suppliers, thereby reducing
environmental load.
5. We shall define environmental objectives, and by periodically reviewing theseobjectives, shall promote continuous improvement of our environmental management
system.
6. We shall endeavor to consider and conserve biodiversity.
May 1, 2021

48

Environmental Management Structure
The SUMCO Group has established the Environmental Management Structure in which theEnvironmental Management Officer, a member of the Management Conference, appoints theCompany-wide Environmental Manager and the Environmental Managers at site, and defines theirroles, responsibilities and authorities. Thoroughness of instructions and information sharing are
ensured at meetings of the Company-wide Environmental Management Committee and theEnvironmental Management Committee at each site, both of which are convened periodically.
SUMCO's Environmental Management Officer holds chief responsibility for issues related to climatechange and has chief authority regarding those issues. The Environmental Management Officer
convenes meetings of the Environmental Management Committee and monitors SUMCO's efforts toaddress climate change.
Environmental Management Structure49

Environmental Objectives
The SUMCO Group sets environmental objectives for each of its operating bases based on its
Environmental Policies and the results of environmental load assessments that are conductedperiodically. We implement initiatives to reduce environmental load and improve the environment inaccordance with these objectives, such as reducing CO2 emissions, the usage of chemical
substances, the generation of industrial waste and water consumption. The results of these initiatives
are reported at Environmental Management Committee meetings and reflected in plans for the next
year. The previous year's performance serves as the base value for these environmental objectives.
Further, we verify our performance every six months and review the objectives as necessary.
2020-2023 Environmental Objectives and 2020 Results
BM*1
Reduction of CO2 emissions
Scope1+2
Reduction of chemical substanceuse

Previous

Reduction of industrial waste

results(reduction of hazardous waste*2

2020

2021

2022

2023

Objectives

Results

Objectives

Objectives

Objectives

1.2%

1.5%

0.8%

0.8%

0.8%

1.8%

2.7%

0.6%

0.6%

0.6%

2.2%

3.5%

0.4%

0.4%

0.4%

(0.04%)(0.05%)(0.04%)(0.04%)(0.04%)

0.4%

0.4%

0.6%

0.6%

0.6%

year'sreleased)
Reduction of water consumption*1 BM = Bench Mark- In the fiscal year 2020, by improving the recycling rate of subsidiary materials, we achieved major
reductions in the amounts of chemical substances used and industrial wastes generated.
- Evaluating performance for each six-month period, we set target figures for subsequent fiscal
years based on a careful examination of items applicable across each operating site.
*2 Hazardous waste refers to specially controlled industrial waste as defined in Japan’s Waste
Management and Public Cleansing Act.

50

Reduction Objectives for Each Base of Operations (9 Manufacturing Bases in Japan)
2020
Site

BM

Reduction of CO2
emissionsObjectives Results

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

Previous
year's results

Reduction of chemical

Reduction of

Reduction of water

substance use

industrial waste

consumption

Objectives

Results

Objectives Results Objectives

Results

0.5%

0.9%

1.9%

4.0%

3.7%

5.7%

0.1%

0.1%

0.6%

0.6%

1.7%

2.0%

0.3%

0.4%

0.1%

0.1%

2.6%

3.1%

0.3%

0.3%

0.4%

4.1%

1.9%

1.9%

0.8%

1.0%

1.4%

1.7%

0.2%

0.2%

0.1%

0.1%

3.7%

3.7%

1.2%

1.2%

0.7%

1.4%

0.2%

0.2%

1.3%

2.5%

0.2%

0.3%

20.7%

31.3%

2.5%

2.5%

1.2%

1.3%

0.4%

5.5%

14.9%

29.0%

1.1%

1.1%

2.2%

2.7%

1.2%

1.7%

0.1%

0.1%

0.2%

0.2%

0.2%

0.3%

1.2%

1.7%

0.1%

0.2%

0.4%

0.4%

1.2%

1.5%

1.8%

2.7%

2.2%

3.5%

0.4%

0.4%

As our efforts for reduction in CO2 emissions, we have promoted reducing electricity usage by
installing high-efficiency compressor at the Nagasaki Plant, and by integrating and upgrading
coolers at the Saga Plant, among other initiatives.
As our efforts for reduction in use of chemical substances, we have promoted modifying treatment
system in wastewater treatment plant, and reducing the amount of chemicals introduced inreaction tanks, among other initiatives.
As our efforts for reduction in industrial waste discharge, we have promoted curbing thegeneration of sludge by reducing the amount of chemicals introduced in wastewater treatment
plant, lowering the water content of the dewatered sludge, and selling waste quartz powder andwaste plastic as recycling material, among other initiatives.
As our efforts for reduction in industrial water usage, we have promoted improving recycle ratio ofpure water used in our manufacturing process, and upgrading aging cooling towers sequentially,among other initiatives.

51

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

in 2030

Long-term Goal

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

CO2 emission per unit (Scope1+2)(CO2 emission in 2014: 821,000 tons-CO2)

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

52

Environmental Education

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

Contents of Education

1. Requests for vehicle inspections toprevent fuel, oil and other substancesfrom leaking
2. The importance of SUMCO personnel
being present at the time of delivery orcollection, and request that theirinstructions be followed
3. Request for inspection of industrial
waste collection vehicles, particularly toprevent leakage or dripping of sludge,
liquid waste, etc.

Suppliers receiving environmental education on theprevention of environmental accidents

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

53

Environmental Accounting
In accordance with Ministry of the Environment's Environmental Accounting Guidelines 2005, theSUMCO Group calculates the results of our group (Japan) from January 2020 to December 2020.

Environmental Costs(million yen per year)
Investments

2,600

Expenses*1

3,100*1 Internal labor cost, depreciation expenses and energy costs (electric power, fuel, water, etc.)
related to operation are not included.

Environmental Conservation Benefits, Economic EffectCategory (Unit)

Environmental Conservation Benefits

Economic Effect(2019-2020)*2(million yen per year)*3

Electricity consumption (GWh)(51)

Fuel consumption (crude oil equivalent kL)(139)

Water consumption (Mm3)(0.8)

Chemical substance consumption (t)102Industrial waste emissions (t)

686

190

*2 The negative value indicates that the increase in environmental impacts exceeded reductions due
to increases trial productions and other factors that does not contribute to sales.
*3 Calculated by our original estimating method.

54

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

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

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

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

4 years prior

3 years prior

2 years prior

Last year(2016)(2017)(2018)(2019)(2020)

Violations

0

0

0

0

0

Fines (yen)

0

0

0

0

0

55

Progress of Soil and Groundwater Contamination Countermeasures
The SUMCO Group conducts soil andgroundwater contamination surveys at
all facility sites.

Accumulated Amount of Contaminated Substances
Recovered Annually from Groundwater at the Noda
Plant

In a voluntary survey implemented at
the Noda site in 2005, it was found thatamounts of volatile organic compounds(VOC) and fluorine exceeded the soil
and groundwater environmental
standard values. We have been
pursuing countermeasures in
consultation with relevant parties. At
present, we are working to prevent the
spread of and recover contaminatedsubstances by using a pumping well set
up near the boundary of the plant grounds.
In fiscal year 2020, there were no new incidents related to industrial water/wastewater across the
SUMCO Group.

ISO 14001 Management System Certificate
ISO 14001 Management System Certificate［3.09MB/3Pages］

To ESG-oriented Investors

56

Disclosure Based on TCFD Recommendations
In April 2021, we expressed our support for the TCFD*1 recommendations.
This section discloses our governance, strategy, risk management, and metrics and targets in linewith the TCFD recommendations.
*1 The Task Force on Climate-related Financial Disclosures established by the Financial Stability
Board (FSB)

1. Governance and Risk Management
In SUMCO, the Environmental Management Committee, chaired by an environmental officer who is amember of the Management Conference, reviews the risks and opportunities arising from climatechange, sets environmental objectives (reduction of CO2 emissions, reduction of water consumption,etc.) to be addressed, and manages the status of such efforts.
As regards climate change and other risks, the Business Security Committee (BSC), which is
attended by the Chairman and CEO and other senior management, determines company-wide
policies and deliberates and decides on risk prevention measures.

Environmental Management Committee: Environmental Management Structure
BSC: ANNUAL RPORT 2020 P40

57

2. Strategy
We recognize that the risks and opportunities associated with climate change are among the key
business issues that will affect our future finance.
We therefore forecast and quantified the risks and opportunities that are likely to have a financial
impact and carried out a scenario analysis in line with the TCFD recommendations.

(1) Major risks and opportunities related to climate change
Scope: SUMCO Group
Timing of embodiment: short term (1 year or less), medium term (1 to 3 years), medium to longterm (3 to 10 years), long term (over 10 years)
Possibility: small, medium, large
Degree of impact: small (1 billion yen or less), medium (1 to 10 billion yen), large (over 10 billion
yen)Classification

Expected result

Degree ofTiming of embodiment

Possibility

Medium to long term

Large

Large

Large

MediumLarge

MediumLarge

MediumMedium term

Large

Small

Short term

MediumShort term

MediumLong term

Large

Large

Medium to long term

Large

Large

Medium to long term

Large

Large

Medium to long term

Large

Large

impactLoss of sales opportunities and increase inprocurement costs due to intensifying
competition in the semiconductor sector
Increase in operating costs due to theintroduction of a carbon tax (carbon pricing)Transition
risk
Risk

Increase in waste disposal costs due to theformation of a recycling-oriented society
Increase in business costs due to the increased
burden of renewable energy levy

ESG investments
Suspension of business activities due to windrisk

Medium to long term
Short term to medium
to long term

Increase in capital costs due to the expansion of

PhysicalMedium term to
medium to long term

and flood disasters
Supply chain disruptions due to wind and flood
disasters

Small tolarge
Small tolarge

Expansion of demand for energy-saving-related
equipment due to the advancement of energy
conservation and renewable energy
Expansion of demand for automotive products
Opportunity

due to the spread of Evs
Increase in demand for server-related
equipment due to the spread of telework
Increase in demand for automation equipment
due to the spread of automation and digitization

58

(2) Scenario analysis
Although all the items identified as risks and opportunities are evaluated as having a significant
impact on SUMCO, three items (blue items in the above list) have been selected for the scenario
analysis in the current fiscal year.

1) Increase in operating costs due to the introduction of a carbon tax (carbon
pricing) [Risk]
Since we emit large amounts of greenhouse gases and there will be a significant impact on ourbusiness if a carbon tax is introduced, we conducted a scenario analysis for the 2°C and 4°C
scenarios.

(i) Assumptions of scenario analysis(1) Total emissions for scopes 1 and 2
Emissions in 2030 are estimated, with emission factors calculated for each country‘s electric utilities
based on the World Energy Outlook (WEO) 2019 of the International Energy Agency (IEA).

Emissions in 2030

2°C

4°C

Sustainable Development Scenario (SDS)Stated Policies Scenario (STEPS)

Approx. 430,000 t-CO2/yr

Approx. 675,000 t-CO2/yr(2) Carbon prices
Carbon prices of each country are set on the basis of the World Energy Outlook (WEO) 2019 of theInternational Energy Agency (IEA).
2°C

4°C

Sustainable Development Scenario (SDS)Stated Policies Scenario (STEPS)

Japan, USA, Taiwan$100/t-CO2 *2$33/t-CO2 *4

Indonesia$75/t-CO2 *3$12/t-CO2 *5*2 The value for advanced economies is adopted.
*3 The value for selected advancing economies is adopted.
*4 The value for EU is adopted.
*5 The lowest value among the values given for different countries in the WEO 2019 is adopted.

(ii) Scenario analysis results
The cost burden will increase by about 2.4 billion yen/yr under the 4°C scenario and about 4.7 billion
yen/yr under the 2°C scenario.

59

(iii) Proposed cost reduction initiatives
Since the scenario analysis has indicated that the total cost decreases when the unit cost of procuring
renewable energy is lower than the unit carbon price, we discuss the introduction of renewableenergy in addition to our current efforts toward energy conservation.
Image of costs associated with carbon tax

2) Expansion of demand for energy-saving-related equipment due to theadvancement of energy conservation and renewable energy [Opportunity]
As we move toward a decarbonized society, demand is expected to increase for power
semiconductors that provide stable and efficient power supply and streamlined, high-precisioncontrol.
We have conducted scenario analysis for representative products that are expected to become morewidespread in the future due to climate-change-related factors and for which both the 2°C and 4°C
climate change scenarios exist and have evaluated changes in the demand for power semiconductors
in each industrial sector.

Consumerequipment
sectorElectric
railcar sector

Market size of power
semiconductors in30%

percentage *6

A few
percent

Automotive &Energy sector

electronics
sector

A few percent

Information &communicationequipment

Industry sector

sector

20%

20%

20%

High-voltage
Solar and wind
Products and devices
with semiconductors
having promising
growth potential

Inverters forhomeappliances,
AC adapters,etc.

and high-power

EVs, quick

Electric

generation

charging

railcars

equipment,

stations,(inverter

power

wirelessmodules)transmission

power supply

infrastructure,systems, etc.

etc.

current
Server power
supplies, UPS,
etc.

applications,such as motor
control,
inverter
control, andwelding
machinery60

Consumer
equipment
sectorElectric
railcar sector

Products andAutomotive &Energy sector

sectorSolar and windequipment subject

Air

Electric

power

to scenario

conditioners

railcars

generation

analysiselectronics

equipmentdifficult tohigh-forecast theefficiency air
conditioners
with inverters
is estimatedto be about
1.3 times
Changes in power

higher thansemiconductorthat underdemand towardthe 4°C

achieving the goal

scenarioof less than 2°C in(business as

2030

usual). The
production
percentage of
air
conditioners
with inverters
is alsoexpected to

The demand
for rail travel,
whose CO2
emissions per
traveldistance islow, willgrow.
The
production ofrailcars is
estimated to
be about 1.2
times higher,

efficiency ofthe entire(ECU)

manufacturing
plantThis sector wascompared to
the 4°C
scenario(business as
usual).

air
conditioners
due to global
Our businesswarming andopportunities in thegreatertransition toward

extremes ofachieving the goal ofweather isless than 2°C

expected tohave apositive
impact on
demand forour products.

are noappropriate
climate change
scenarios forthe sector, andgeneration

the cycle ofequipment andproducts andrelatedservices is

products, weshorter than inestimate that

other sectors,

the amount of

globally will be
about 1.5
times greaterthan in the 4°C
scenario

Although the
production of

because there

in powerusual).

Increased

the analysis

to be installed(business as

rise.

not included insemiconductors

introduced

market size issectorcontrol unit

power

power to be

makingA separate
scenario
analysis isconducted for

medium- tolong-term
projectionsdifficult.

generalproducts due

equipment andproducts in this
sector, weestimate thatenergyintensity in the
manufacturingindustry will
decrease by
about 7% incomparison
with the 4°C
scenario(business as

Consideringthat there are
no direct

market size

expect that theis small, we

global shift to

expect arenewable

demand for

positiveenergy willproducts andimpact on

increase theservices in thisdemand for

production of

sector, we

our products

power

assess that theas demand

conditioners

difference infor electricand otherdemand forrailcars

products,

powerincreases due

which will havesemiconductors

to a modal

a positivein this sector

shift.

impact on

between the

demand for our

2°C and 4°C

products.

scenarios isof EVs")individual

efficiency.

small, weto the spread

scenarios forand improved(seeautomotive

changeconservation

devicesdemand forare no climate

energysemiconductor"Expansion of

Although there

usual) due toautomotive

Although theclimate change
factors
affecting thesmall.

61

Industry sector

Energyvolume ofsolar and windequipment

Electronic

Although it is
Production ofInformation &communication

We expect thatdemand for
power
semiconductors
will increase
due to suchfactors as
progress inenergyconservationand higher
efficiency infactories, which
will lead toincreased
demand for our
products.

Consumer
equipment
sectorElectric
railcar sector

Automotive &Energy sector

electronics
sectorInformation &communicationequipment

Industry sector

sector

Our business
opportunities with

The market for next-generation power semiconductors (SiC, GaN, etc.), which are currently

the spread ofundergoing development, commercialization, and cost reduction, is expected to expand

next-generation

significantly by 2030. We will therefore continue to monitor the spread of next-generation power

power

semiconductors, pursue development, and increase our capacity.

semiconductors*6 Based on a research company's forecast data623) Expansion of demand for automotive products due to the spread of EVs[Opportunity]
In forecasting the demand for automotive wafers, we estimated the ratios of future EV/HEV
production as shown in the ﬁgure below.
Regarding the right-side graph (New scenario) as the 2°C scenario and the left-side graph as the 4°C
scenario (business as usual), we analyzed the trend of silicon wafer demand until 2030 by multiplying
the projected area of silicon wafers for automotive semiconductors by the production ratio of eachvehicle type.
The results indicate that the demand for silicon wafers in 2030 will be more than doubled compared
to 2020 in both the 2°C and 4°C scenarios. When both scenarios are compared, the demand as of2030 under the 2°C scenario is estimated to be about 1.1 times higher than that under the 4°C
scenario.
In the automotive and electronics sector, we expect, as a baseline, increasing demand for automotive
semiconductors due to such trends as automated driving and computerization of display devices. In
addition, we expect that the spread of EVs and PHEVs for decarbonization will have the eﬀect offurther boosting demand, with a positive impact on demand for our products.
We will therefore continue to develop high reliability and durability and increase our capacity.

* The scenario analysis was conducted with the help of an external research company in collecting
and analyzing external information.
63

3. Metrics and Targets
Setting the reduction of CO2 emissions as one of our environmental objectives, we are working to
reduce CO2 emissions.
We are also publishing the results of our activities to achieve the objective.

Environmental objectives
Environmental load of business activities

64

Environmental Load of Business Activities
The depletion of energy resources, global warming, threats to biodiversity and other environmental
problems are having an increasingly serious impact on the global environment. The SUMCO Groupidentifies forms of energy such as electric power, chemical substances, waste products andwastewater as significant environmental aspects in its production activities and pursues initiatives tomake environmental considerations and reduce the environmental load across all of its businessactivities.
Business Activities and Environmental Load in 2020 (SUMCO Group [Japan])65

List of Boundaries

Site

Kyushu Factory

water

waste
generated

AtmosVOC

PRTR

phericAbbre-

emissions emissions pollutant

viationemissions
〇

〇

〇

〇

〇

〇

〇

〇

〇

〇

〇

〇

〇

〇

〇

〇

〇

Yonezawa Plant

〇

〇

〇

〇

—

〇

—

Chitose Plant

〇

〇

〇

〇

〇

〇

—

JSQ Division

〇

〇

〇

〇

—

〇

〇

〇

〇

〇

〇

〇

〇

〇

(Saga)

in Japanwaste-

Industrial〇

Kyushu Factorycompanies

energy usage

used/

〇

(Kubara, Imari)Groupstemming from

Water

〇

Kyushu Factory

SUMCO

usage

CO2 emissions〇(Nagahama, Imari)IncludesEnergy

SUMCO

SUMCO TECHXIV
Corp. Nagasaki
Plant

STC

SUMCO TECHXIV
Corp. Miyazaki

〇

〇

〇

〇

〇

〇

〇

〇

〇

〇

〇

—

〇

〇

STEC

〇

〇

〇

〇

—

—

〇

SPX

〇

〇

〇

〇

—

—

—

SPTI

〇

〇

〇

〇

〇

〇

〇

FST

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

PT. SUMCO
Indonesia
FORMOSA SUMCOTECHNOLOGYCORPORATION* Including all Japan and overseas sites.

66

Environmental Load (Japan)
CO2 emissions (Japan) (thousand tons-CO2 per year)
SUMCO (Scope 1+2)
750

STC (Scope 1+2)
750

520
500

402

438

250
0

500
250

2018

2019

2020(year)

0

156

112

119

2019

2020(year)

4.1

4.1

4.2

2018

2019

2020(year)

2018

Water consumption (Japan) (Mm3 per year)
SUMCO
15.0
10.0

STC
15.0
9.3

9.7

10.4
10.0

5.0
0

5.0

2018

2019

2020(year)

067Environmental Load (Overseas)

CO2 emissions (overseas) (thousand tons-CO2 per year)
SPTI (Scope 1+2)
200

FST (Scope 1+2)
200

150

150

100

100

50
0

16

15

12

2018

2019

2020(year)

152

144

2018

2019

165

50
0

2020(year)

Water consumption (overseas) (Mm3 per year)
SPTI
5.0

FST
5.0

2.5

2.5

0

0.4

0.4

0.4

2018

2019

2020(year)

0

SPX
5.0

2.6

2018

2.5

2019

2.8
2.5

2020(year)

0

1.4

1.3

1.3

2018

2019

2020(year)* CO2 emissions of the overseas subsidiaries are calculated using the emission coefficient of eachcountry based on the Greenhouse Gas Protocol Initiative.

68

Environmental Data (SUMCO Group)
Greenhouse Gas Emissions Data(thousand tons-CO2 per year)

5 years prior

4 years prior

3 years prior

2 years prior

Last year(2016)(2017)(2018)(2019)(2020)

Scope 1 (direct)

22

23

25

26

25

Scope 2 (indirect)

913

894

877

702

765

Scope 3 (other indirect)

4

4

4

612

694

Scope 1&2

935

917

902

728

790

Scope 1, 2&3

939

921

906

1,340

1,484

* Numbers of Scope 3 (other indirect) until 2018 include category 4 (upstream transportation anddistribution) only.
Greenhouse Gas Emissions Scope3 Data (Japan)(thousand tons-CO2 per year)

Category

2020

1

Purchased goods and services414

2

Capital goods

1133

Fuel- and energy-related activities (not in Scope 1 or 2)

99

4

Upstream transportation and distribution

31

5

Waste generated in operations

23

6

Business travel

1

7

Employee commuting

13

8

Upstream leased assets

Not applicable9

Downstream transportation and distribution

—*1

10

Processing of sold products

—*1

11

Use of sold products

12End-of-life treatment of sold products

13

Downstream leased assets

Not applicable

14

Franchises

Not applicable

15

Investments

Not applicableNot applicable—*1*1 SUMCO products are potentially intermediate products with many downstream applications. It isdifficult to make an accurate and reliable calculation, and we have determined that the calculation
is not appropriate in terms of reliability.

69

Greenhouse Gas Emissions Data (by Company)(thousand tons-CO2 per year)

5 years prior

4 years prior

3 years prior

2 years prior

Last year(2016)(2017)(2018)(2019)(2020)

SUMCO

553

538

524

1,014

1,132

STC

169

159

156

112

119

FST

148

152

152

144

165

SPX

60

61

61

58

57

SPTI

10

11

12

12

12

Total

939

921

906

1,340

1,484

* Greenhouse Gas Emissions Scope3 is aggregated as "SUMCO".
Breakdown of Greenhouse Gas Data (Scope 1)(tons)

5 years prior

4 years prior

3 years prior

2 years prior

Last year(2016)(2017)(2018)(2019)(2020)

CO2

22,00023,00025,00026,00025,000

CH4

—

—

—

—

—

N2O

—

—

—

—

—

HFC

0.010

0.012

0.012

0.012

0.006

PFC

—

—

—

—

—

SP6

—

—

—

—

—

Other

—

—

—

—

—

5 years prior

4 years prior

3 years prior

2 years prior

Last year(2016)(2017)(2018)(2019)(2020)

1,698

1,735

1,793

1,707

1,792

427,396436,979

451,403429,838

451,085

8,382

8,359

8,711

9,054

8,804

Energy Consumption

Electricity usage (GWh)Electricity (converted topetroleum) (kL)
Fuel (converted to petroleum)
(kL)

70

Water Supplied(Mm3 per year)

5 years prior

4 years prior

3 years prior

2 years prior

Last year(2016)(2017)(2018)(2019)(2020)

12.2

12.6

13.2

13.5

14.8

3.3

3.5

3.4

3.3

3.2

Quarry water

—

—

—

—

—

Potable water

1.1

1.3

1.3

1.15

1.12

External drainage water

—

—

—

—

—

Rainwater

—

—

—

—

—

Seawater

—

—

—

—

—

Total

16.6

17.4

17.9

18.0

19.1

Surface water (rivers, wetland,
natural lakes)
Water underground (wellwater)

Water Supplied (by Company)(Mm3 per year)

5 years prior

4 years prior

3 years prior

2 years prior

Last year(2016)(2017)(2018)(2019)(2020)

SUMCO

9.0

9.2

9.4

9.7

10.4

STC

3.8

3.9

4.1

4.1

4.2

FST

2.3

2.5

2.6

2.5

2.8

SPX

1.2

1.4

1.4

1.3

1.3

SPTI

0.3

0.4

0.4

0.4

0.4

Total

16.6

17.4

17.9

18.0

19.1

* Please refer the page of "Effective Use of Water Resources" for water-stressed area.

71Drainage Water(Mm3 per year)

5 years prior

4 years prior

3 years prior

2 years prior

Last year(2016)(2017)(2018)(2019)(2020)

7.1

7.3

7.7

7.8

8.6

—

—

—

—

—

—

—

—

—

—

4.3

4.8

5.0

5.2

4.7

Other drainage water

3.2

3.4

3.3

3.3

3.1

Total drainage water

14.6

15.5

16.0

16.3

16.4

Total water drained into the
ocean
Total water drained to surface
water sources
Total water drained tounderground sources/ well
water sources
Total water drained outside ofplantsDrainage Water (by Company)(Mm3 per year)

5 years prior

4 years prior

3 years prior

2 years prior

Last year(2016)(2017)(2018)(2019)(2020)

SUMCO

8.0

8.1

8.3

8.4

8.9

STC

3.3

3.4

3.7

3.8

3.7

FST

1.9

2.0

2.1

2.1

2.3

SPX

1.2

1.6

1.5

1.6

1.1

SPTI

0.2

0.4

0.4

0.4

0.4

Total

14.6

15.5

16.0

16.3

16.4

VOC emissions(tons per year)

VOC

5 years prior

4 years prior

3 years prior

2 years prior

Last year(2016)(2017)(2018)(2019)(2020)

16.6

20.3

21.7

23.8

18.4

To ESG-oriented Investors

72

Combating Global Warming
To help prevent global warming, the SUMCO Group identifies both external and internal challenges topreventing climate change based on the Company's business goals/Environmental Policies and theneeds and expectations of related stakeholders. In this way, the Group determines risks andopportunities related to these external/internal issues and needs/expectations.
Based on these, we resolve and implement year-long initiatives targeting climate change issues thattake into account the risks and opportunities for each department, report the results to theenvironmental management executive officer, evaluate and analyze the results at meetings of theEnvironmental Management Committee, and as necessary, revise these risks and opportunities.
To look at a specific example: For the production of silicon wafer, the SUMCO Group makes every
effort to streamline production and promote rationalization in order to reduce electric power
consumption. When it comes time to update production and utility facilities, we replace them withenergy-saving and high-efficiency alternatives. In offices, lighting is turned off during lunchtime andother breaks, and air conditioners are set at a reasonable temperature to save energy. For Example,
we have reduced electricity usage by installing high-efficiency compressor at the Nagasaki Plant andby replacing the lighting equipment at each plant with LED equivalents, among other initiatives.
In Japan, the SUMCO Group takes part in the following initiatives addressing the issues of climatechange.

(1) We are part of an industry group (for Japanese electrical and electronics industries) involved in
activities supporting the Keidanren’s “Commitment to a Low Carbon Society,” an initiative that lists,publishes and implements activities entities themselves can proactively take on to help create a
global low carbon society.

(2) We have registered with the Environmental Reporting Platform Development Pilot Project of the
Ministry of the Environment. This undertaking encourages the disclosure of environmental
information and dialog among parties including companies and investors. It is contributing toward
the creation of a sustainable society by helping to ensure that companies actively engaged inenvironmental activities are properly recognized for their efforts and gain investor funding support asa result.
In 2019, major investment in CO2 reduction totaled 169 million yen.

73

CO2 Emissions (Scope 1+2)

CO2 Emissions per Silicon Wafer (sales)(SUMCO Group)(SUMCO Group)

Cumulative Reduction of CO2 Emissions(SUMCO Group)

Electric Power Consumption

Electric Power Consumption per Silicon Wafer(sales) (SUMCO Group)(SUMCO Group)74

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

CO2 Reduction through Modal Shift to Ship Transport in the Field ofLogistics
SUMCO used to rely solely on airfreight

CO2 Reduction through Modal Shift to Ship Transport

for the transportation of silicon wafers tooverseas markets. However, to reduce
both CO2 emissions and transportation
costs, we have been promoting a modal
shift to ship transport for some of our
products since 2009, taking into accountfactors affected by longer transportation
lead time and changes in thetransportation environment. We conduct tests before switching to ship transport to confirm that thequality of products is not affected, as well as consulting with customers.

To ESG-oriented Investors

75

Reduction of Waste
Amount of Disposal (SUMCO Group [Japan])

In Japan, the SUMCO Group is working to reduce
the amount of waste generated as part ofenvironmental conservation efforts. In particular,
to deal with the large volume of sludge generated
at our plants, the SUMCO Group is making efforts
to optimize the quantity of chemicals injected for
wastewater treatment, and to deal with waste oil,waste acid, waste alkali, waste plastics and otherwaste, we are focusing on promoting theirrecycling and conversion into valuable resources.

Waste Reduction through the Adoption of Reusable Containers
We are replacing the containers used to ship 300-mm diameter silicon wafers with reusable
alternatives as one of the initiatives to reduce post-shipment waste.
The percentage of reusable containers used for shipment in 2020 was 62.8%.
Before introducing reusable containers, we conduct tests to ensure that the quality of the products is
not affected.

To ESG-oriented Investors76Effective Use of Water Resources
The SUMCO Group recognizes that water is an important resource playing a vital role inmanufacturing silicon wafers. We have set environmental objectives related to reducing water usedby our business, and we are working to use water resources effectively at all of our manufacturingbases.
The SUMCO Group’s water recycling rate hovers at around 39% and was 38.2% in 2020.
Amount of Water Recycled and Recycling
Rate

Amount of Water Supplied and Discharged(SUMCO Group [Japan])(SUMCO Group [Japan])Amount of Water Consumption by Water
Source (SUMCO Group [Japan])Amount of Water Supplied per Product (Sale)(SUMCO Group [Japan])At our plants in Japan and overseas, we utilize the reject water generated in the water purification
process as cooling water for utility facilities and dilution water for wastewater treatment chemicals.
We are also working to conserve as much water as possible for recycling, such as collecting the rinse
water used to clean silicon wafers.

77

Water Recycle Flow (SUMCO Group)

Cooperation with Stakeholders
Disclosures through CDP (Water Security)
The SUMCO Group disseminates information regarding its ESG efforts to a wide range ofstakeholders.
Starting 2021, we will respond to the water security questionnaire conducted by the CDP, which
publishes information on companies’ environmental initiatives according to common measures.

78

Water-stressed Areas
The SUMCO Group investigates water stress using the AQUEDUCT tools provided by the WRI*1. The
following shows the results of the 2020 investigation.
Water stress*2

Operating Base

Includes SUMCO Group
companies in Japan

SUMCO Group Companies
Overseas

Kyushu Factory (Nagahama, Imari)

2

Kyushu Factory (Kubara, Imari)

2

Kyushu Factory (Saga)

2

Yonezawa Plant

1

Chitose Plant

1

JSQ Division

1

SUMCO TECHXIV Corp. Nagasaki Plant

2

SUMCO TECHXIV Corp. Miyazaki Plant

1

SUMCO Technology Corp. Noda Plant

2

SUMCO Phoenix Corporation

3

PT. SUMCO Indonesia

4

FORMOSA SUMCO TECHNOLOGY CORPORATION

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

To ESG-oriented Investors

79

Chemical Substance Management
The Act on Confirmation, etc. of Release
Amounts of Specific Chemical Substances inthe Environment and Promotion ofAmount of PRTR-Regulated Substances
Released and Transferred (SUMCO Group[Japan])Improvements to the Management Thereof(Law concerning Pollutant Release and Transfer
Register / PRTR Law) requires businesses toreport the amounts of any designated chemical
substances released into the environment ortransferred.
There are 12 substances subject to reporting
under the PRTR Law. The majority of these aresubstances contained in cleaning agents and* The figure for each year shows the amount of
released or transferred substances during thepreceding year from April through March.

fuels.
With regard to the substances subject toreporting under the PRTR Law, the SUMCO Group measures the amounts of such substancestransferred or released into the environment based on a stringent management system and issues
reports without omission.

80

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 2019 to March 2020
(t per year)

Ordinance

AmountChemical SubstancehandledAtmos-

Publicpherewaters

14.1

-

1.2

No.
20
30

Amount released

Name of Class 1 Designated2-aminoethanol
Linear alkylbenzene sulfonate(LAS)

Amount transferred

Soil

Landfill

Sewerage

Waste

0.0

-

-

-

0.0

-

0.0

-

-

-

-

71

Ferric chloride

6.2

-

-

-

-

-

-

80

Xylene

71.8

1.2

-

-

-

-

0.5

88

Hexavalent chromium compound

1.7

-

-

-

-

-

1.5

296

1,2,4-Trimethylbenzene

81.0

0.1

-

-

-

-

-

300

Toluene

7.8

7.5

-

-

-

-

0.3

1.7

-

-

-

-

-

-

627.6

0.2

0.0

-

-

-

243.0

332

374

Arsenic and its inorganic
compoundHydrogen fluoride and its watersoluble salts

405

Boron compound

1.3

-

0.0

-

-

-

-

407

Poly (oxyethylene) alkyl ether

21.6

-

0.0

-

-

-

2.2

43.0

-

-

-

-

-

43.0

9.1

0.0

-

-

-

-

-

888.1

9.1

0.1

-

-

-

290.4

410
438

Poly (oxyethylene) nonylphenyl
ether
Methylnaphthalene
Total* The amount handled is not equal to the total amount released and transferred because some
substances were released after decomposition and detoxification.

To ESG-oriented Investors

81

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82

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

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

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

83Communication with Shareholders and Investors

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

IR Activities
The Timely Disclosure Network (TDnet) of theTokyo Stock Exchange is utilized to disclose
information that needs to be disclosed in atimely fashion, and documents are posted bothin Japanese and English simultaneously on our
website to ensure the fair disclosure of
information to shareholders and investors in
Message to Shareholder

Japan and overseas. Our Annual Report andMessage to Shareholders are also published toconvey messages from top management andAnnual Report 2020

report on business performance and conditions.

As well as regularly held meetings with institutional investors and securities analysts, SUMCO also
periodically provides company briefings to individual investors and organizes visits to overseas
institutional investors in Europe, North America and Asia to help investors develop a better
understanding of the Company.
While some IR activities for overseas stakeholders were postponed in fiscal year 2020 due to the
COVID-19 pandemic, briefings on financial results led by senior management were held quarterly.
SUMCO also actively participated in domestic and overseas conferences, and held web- and teleconferences with investors.

To ESG-oriented Investors

84

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

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

Quality Control System
In the SUMCO Group, all sites including aﬃliate companies in Japan and overseas haveobtained IATF 16949 and ISO 9001 certiﬁcations. We strive to ensure stable levels of quality as
well as further enhance it, and have made continuous improvements to our quality
management system.

The SUMCO Group Mission Statement, Quality Policy and Targets

85Quality Education
To enhance product reliability and safety, it isnecessary for not only those in charge but alsoeach worker to have the mindset of a supervisor
and improve their skills.
For this reason, we have developed quality
education programs for each job and level of
employee and assigned instructors for eacheducation program to each production site toprovide necessary education to the humanQuality education at one of the SUMCO seminars

resources that need it whenever required.
In 2020, having taken steps to deal with COVID-19, the SUMCO Group conducted around 210
internal seminars in an effort to enhance the knowledge and awareness of quality control on the partof employees.

Response to Quality Problems
Flow for Sharing Quality Problems

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

86

Initiatives to Improve Customer Satisfaction

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

Communication with Customers
To further enhance customer satisfaction, we strive to improve the quality of products and services
through two-way communication with customers.
As part of this initiative to promote communication with customers, we proactively hold technicalcommunication meetings both domestically and internationally in order to grasp customer needs
accurately and at an early stage, foster technological development at a rapid pace, and reliably
provide products that match customer needs.
At the technical communication meetings, we make proposals based on our unique technologies, aswell as check and follow up on the performance of our products. We position these technology
conferences as opportunities to win recognition and trust from customers. The feedback anddemands of customers learned from the technical communication meetings are utilized forcontinuous product improvement of our products and are reflected in business plans, such as forformulating technology development roadmaps that accommodate customers' needs for higher
precision and enable product differentiation. By doing so, we strive to gain and maintain a strong
presence among customers.
In 2020, we were unable to hold in-person technical communication meetings due to the COVID-19
pandemic, but we continued to communicate with customers through web conferencing systems andother means.
Through these SUMCO Group initiatives to promote close communication with customers, we
endeavor to provide the most appropriate information.

87

Flow for Sharing Customer Satisfaction (CS) Evaluation Information

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

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

To ESG-oriented Investors

89

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

Procurement Policy
In our procurement activities, SUMCO strives to engage in fair and rational trade with all
suppliers, both domestic and overseas *1, based on mutual trust.
With the cooperation of all suppliers, we also actively promote initiatives to fulfill our corporatesocial responsibilities, including compliance with related laws, ordinances and social norms, andefforts to support global environmental conservation.
<Procurement Policy>
1. Transactions based on partnership
We will develop favorable partnerships with our suppliers based on mutual trust.
2. Fair transactions
We will ensure that our procurement is clean, open and fair.
3. Promotion of value analysis (VA) activities
We will encourage our suppliers to conduct value analysis (VA) activities in order to propose
cost improvement methods, new materials, new technologies and others, and will actively
adopt such proposals.
4. Compliance in procurement activities
We will comply with laws, ordinances and social norms in the course of our procurement
activities.
5. Fulfillment of corporate social responsibilities
We will fulfill our social responsibilities when conducting procurement activities across ourentire supply chain, including our suppliers.
SUMCO CSR Procurement Policy [95KB/3Pages]
6. Green procurement
We promote the procurement of materials with minimum environmental impact.
*1 [Reference] Procurement amount ratio by area in 202090

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

91

SUMCO CSR Procurement Policy
SUMCO promotes responsible procurement activities to fulfill our social corporate
responsibility across our supply chain. We thoroughly share with our suppliers various
themes related to supply chain , and tackle procurement activities with such themes inmind so that our customers can use our products with peace of mind and our various
stakeholders should be satisfied.
We would appreciate it if you could implement the following CSR requirements and also
encourage your own suppliers to promote CSR management throughout your supply
chain.
1. Human Rights and Labor
It is expected to uphold human rights of all workers and treat them with dignity andrespect. You are required to comply with the following standards, among others:
1) Freely chosen employment, and prohibition of forced or bonded labor;
2) Prohibition of child labor, and protection of young workers from dangerous work ornight shifts;
3) Properly managing working hours and holidays, and reducing overtime;4) Compliance with laws and regulations on wages and madated benefits, andpayment of proper wages which satisfy minimum wages and living standards;
5) Prohibition of inhumane treatment, and prohibition and prevention of harassment;
6) Prohibition of discrimination based on race, nationality, age, gender, religion,
disability, marital status, sexual orientation, etc.; and
7) Freedom of association, freedom of joining trade unions, and respect for the rightof collective bargaining.
2. Safety and Health
It is expected to ensure occupational safety and promote workersʼ health.
You are required to comply with the following standards, among others:
1) Occupational safety;
2) Preparedness for emergency including securing exit route doors;
3) Prevention of occupational injury and illness;
4) Securing industrial hygiene;5) Controlling physically demanding work;
6) Machine safeguarding;7) Securing safety and health on sanitation, food and housing; and
8) Training on health and safety.

92

3. Environment
It is expected to reduce environmental impact and to promote effective use ofresources.
You are required to comply with the following standards, among others:
1) Obtaining and maintaining all the necessary environmental approvals andregistrations;2) Prevention of pollution and efficient use of resources;
3) Strict control of hazardous substances;
4) Control, reduction and reuse of solid waste;5) Monitoring and controlling air emissions;6) Prohibition and restriction of specific substances;
7) Water management; and
8) Control and documentation of energy consumption and greenhouse gas emissions.
9) Preservation of biodiversity
4. Ethics
You are required to uphold and implement the highest level of business ethics,
including:1) Prohibition of bribery, corruption, extortion and embezzlement;
2) Prohibition of offering or accepting improper advantage;
3) Proper disclosure of information;4) Protection of intellectual property;5) Fair business, advertising and competition;
6) Protection of whistle-blowers and prohibition of retaliation;7) Responsible sourcing of minerals; and
8) Privacy protection and information security.
5. Business Continuity
To secure stable supply of important products and services, you are required to
implement necessary actions, including risk assessment, business continuity planning,training, drills and maintenance of emergency communication channels.

936. Management System
You are required to establish and administer a management system to achieve andensure the items above.
The management system shall be equipped with the following elements:
1)

Stated policy/commitment of compliance;

2)

Periodical senior management review of the management system;

3)

Process to identify, monitor and understand applicable laws, regulations andcustomer requirements and this Policyʼs requirements;

4)

Risk assessment and risk management;

5)

Improvement objectives;

6)

Training;

7)

Communication;

8)

Worker feedback, participation and grievance;

9)

Audits and assessments;

10)

Corrective action process;11)

Documentation and records; and

12) Communicating this policyʼs requirements to your suppliers and monitoring
suppliersʼ compliance with them.
SUMCO will support our suppliersʼ implementation of those CSR requirements.

94

CSR Procurement Activities

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

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

Briefing Sessions for Suppliers
Brieﬁng Sessions for Suppliers (In 2020, we held the session by web-based meeting due to COVID19.)
November 19, 2020 – web-based meeting (387 people from 221 companies)(2) Supplier Handbook
To help suppliers understand our approach to procurement activities, we distribute Supplier
Handbook, which includes a section on our procurement policy and requests to suppliers including
items relating to CSR. The Supplier Handbook is posted on our dedicated procurement website used
in SUMCO's daily procurement activities for easy reference at any time by suppliers.
In this handbook, we ask suppliers that comprise our supply chain to promote CSR. As guideline tobe followed in implementing CSR management, we ask suppliers to utilize the RBA Code of Conduct,
and also encourage subcontractors and sub-subcontractors to implement CSR management in asimilar fashion.
95

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

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

(5) CSR Questionnaires and Audits
We distribute and collect CSR questionnaires based on the RBA Code of Conduct to our main
suppliers to review the status of CSR initiatives at each company. The questionnaires are issued tothe suppliers we regard as important because we purchase large amounts from them and they are
essential to our production activities. There are more than 200 such companies, and SUMCO has
managed to secure responses from almost all of them. Based on the results of these questionnaires,
we conduct regular CSR audits that include field audits of a given number of suppliers. Along with
providing explanations of our CSR procurement policy and environmental policy and asking forunderstanding and cooperation, we verify the state of compliance with each of the items on the CSR
questionnaire such as human rights, safety, environment, ethics, and management systems, as wellas confirming the status of improvements.
The CSR Audit found suppliers who had not conducted training on how to prevent insider trading forseveral years, suppliers who had not adequately managed expiration dates for legally stipulated
safety and environmental qualifications and suppliers who had failed to secure emergency exits andescape routes for employees. SUMCO requested the understanding of suppliers and asked them tocorrect these issues, leading suppliers to improve their operations. Although we did not conduct the
CSR Audit in 2020 due to COVID-19, SUMCO Group will continue to promote CSR management in our
supply chain.

96

Major Items in the CSR Questionnaire
1. Human Rights and Labor(1) Freely chosen employment
Examples: Prohibition of forced and bonded labor(2) No use of child labor
Example: Prohibition on child labor, not having young workers engage in dangerous
work(3) Limitation on Working Hours
Example: Compliance with laws and ordinances on working hours and holidays(4) Lawful Wages
Examples: Compliance with laws and ordinances on minimum wages(5) Humane Treatment
Examples: Respect for human rights, prohibiting harassment and establishingdisciplinary mechanisms(6) Non-Discrimination
Examples: Prohibiting discrimination on the basis of race, nationality, gender, age,sexual orientation,religion, disabilities or other traits(7) Freedom of Association
2. Safety and Health(1) Occupational Safety
Examples: Obtaining and renewing permits and licenses, providing personal protective
equipment(2) Preparedness for Emergency
Examples: Setting up appropriate emergency evacuation doors and evacuation routes,
conducting drills(3) Prevention of Occupational Injury and Illness
3. Environment(1) Compliance with Environmental Laws and Ordinances
Examples: Obtaining the necessary licenses and other permits, compliance withenvironmental standards(2) Pollution Prevention and Waste Reduction
Examples: Reducing waste and greenhouse gases, controlling wastewater(3) Reduction in Energy Consumption and Greenhouse Gas Emissions
4. Ethics(1) Compliance with Laws
Examples: Prohibiting bribery and corruption, establishing internal reporting systems(2) Fair Business Activities
Examples: Compliance with laws and ordinances on fair trade, competition andadvertising(3) Information Management
Examples: Appropriate management of customer information and protection of
intellectual property rights
5. Business Continuity(1) Risk Assessment and Risk Management(2) Business Continuity Plan (BCP)
6. Management Systems
97

(6) Training for Procurement Staff
SUMCO's procurement staff also need sophisticated expertise and a compliance-oriented mindset to
conduct the CSR procurement activities listed above. By training staff about the SUMCO Charter ofCorporate Conduct and providing departments in charge of procurement with opportunities to train
themselves regarding laws and regulations every year, the Company aims to increase employee
understanding and awareness regarding the background and meaning of the SUMCO CSR
Procurement Policy, legal compliance, unfair competition and improper transactions, anti-corruption
and respect for human rights.

Risk Management within Procurement Activities
We work to identify the many risks facing the company in its procurement activities, including risk of
instability in procurement of raw materials, risk of corruption, risk of legal violation and risk of use ofcontrolled or prohibited substances. We assess the extent of impact should any of these risksmaterialize, assign priorities to them, and implement management measures according to the levelof each risk. (Refer to the section titled "Risk Management" for details.)

When selecting new suppliers or evaluating existing suppliers, we conduct risk assessment on various
risks such as disruptions to raw material procurement, comprehensive corruption risk, violation oflaws and risk of using regulated/prohibited substances, asking suppliers with high-risk items to
improve their operations to prevent risks.

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

1. Continuing optimum inventory control based on the characteristics of each procured
material
We will review inventory quantities, storage sites, transportation methods and other aspects
for each type of material whenever necessary.
2. Source investigation and risk response
We will investigate and confirm production sites and sources of major items and respondaccording to the level of risk involved.
3. Maintenance, enhancement and review of business continuity plan for each item procured
We will develop business continuity plans for each major item so that we can properly
respond to the occurrence of any risk.
4. Risk assessment of suppliers
We will periodically conduct checks on our main suppliers with respect to their financial
condition, production systems, business continuity plans and other aspects, and respond
appropriately based on the results.

Initiatives to Reduce Environmental Impact
Through the aforementioned CSR questionnaires and CSR audits, SUMCO strives to reduce
environmental impact across the entire supply chain by incorporating items designed to review
initiatives aimed at reducing the amount of waste generated, curbing greenhouse gas emissions andreducing the use of electricity, water and energy, and by recognizing suppliers implementing
continually concrete reduction activities by setting numerical targets or taking other measures.
Besides getting suppliers to understand the SUMCO Basic Environmental Policy, education andtraining are provided in such areas as environmental accident prevention and legal compliance.

To ESG-oriented Investors99

Respect for Human Rights
SUMCO’s Basic Policy on Human Rights
The SUMCO Group regards respect for basic human rights to be an important social
responsibility. We pursue a number of initiatives to be a company that "values people" andrespects the human rights of all people associated with the SUMCO Group.
The SUMCO Group looks towards international standards such as the Universal Declaration of
Human Rights and the Guiding Principles on Business and Human Rights. In the SUMCO CSR
Policy, we pledge to ensure a safe, health, comfortable and appropriate workplace, maintain astrong respect for human rights, abilities and personalities, and to achieve equal opportunity
employment, ensure the fair treatment of employees and realize diverse ways of working. To
this end, we strive to create a workplace where employees are motivated to work hard.
Based on this policy, SUMCO Group's Code of Corporate Conduct and various regulations clearly
define rules prohibiting workplace harassment (bullying or teasing) and other conduct inviolation of human rights based on illegitimate reasons such as race, religion, gender,
nationality, age, sexual orientation, and disability. In addition to establishing the internalreporting hotline, translating the regulations into various languages and educating to increasehuman rights awareness among all employees of the Group, we have also established humanrights violation and harassment consultation services at each Company site in Japan.
We not only prohibit child labor, but base our business activities on a clearly defined, written
policy which respects the rights of every child and prohibits forced labor. We had no problems
with child labor and forced labor.
In accordance with the labor laws and regulations of each country, we work to build trust
between labor and management while respecting employees’ freedom of association and theirright to organize and engage in collective bargaining. We also offer working conditions including
wages that are appropriate to living standards in light of minimum wages, and strive tomanage working hours appropriately by reducing excessive overtime.
SUMCO develops guidelines based on the above and shares them internally by posting them to
the Company intranet.

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

Major Themes Covered in Human Rights Awareness Training
Respect for diversity (especially gender, sexual orientation, etc.)
Human rights for the elderly
Workplace harassment
Sexual harassment
Harassment related to pregnancy, childbirth, childcare or nursing care leave in theworkplace
Mental health issues in the workplace
Measures based on the number of consultations to the consultation service in the year,
harassment, etc.

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

101

Establishment of a Harassment Consultation Service
SUMCO has established a Harassment Consultation Service to serve as the point of contact for
employees to consult about issues related to human rights violations and harassment. To ensure that
employees can casually seek advice at any time, the consultation services are staffed by both maleand female consultants who work based on three principles: (1) protecting the privacy of employees
seeking consultation; (2) prohibiting disadvantageous treatment of related persons; and (3) dealing
with consultations in a fair manner. In particular, the service accepts consultations by e-mail or
telephone to keep them confidential. Each consultation request received is investigated in therelevant department, measures for rectification and prevention of a recurrence are taken as thesituation calls for, and the results are reported to management, while the consulting party is given
feedback. In addition, the results are shared with the Human Rights Awareness and Promotion
Committee, putting them to Group-wide use in measures for preventing a recurrence.
In 2020, the Harassment Consultation Service handled two consultation cases.
Harassment Consultation Service System

102

Harassment Training
We hold harassment training to eradicate harassments for management-level staff in each region. In
2020, a total 442 staff members underwent the training.

Response to Labor Standards Violations
Based on the ILO Labor Principles, the Group strives to comply with the labor standards andregulations of each country. When an administrative directive for a labor standard violation is issued
by a governmental authority, the SUMCO Group submits a report on the directive to the upper
management and members of the Audit and Supervisory Committee, ensures that corrective actionis undertaken throughout the Group, and works to raise awareness of the issue and prevent it fromreoccurring.

Labor-Management Relations
The SUMCO Group grants consideration to and respects the rights of all employees, including
employees' right to freedom of association based on the laws of the countries and regions in which
the SUMCO Group does business. We also aim to strengthen labor-management relations while
respecting employees' right to assembly and collective bargaining.
In Japan, for example, the labor agreement concluded between the Company and workers, inaddition to rules, sets out as a basic policy that issues between labor and management are to beresolved through collective bargaining and discussion based on mutual understanding and trust,
aimed at the perpetual development of the Company and improvement of working conditions, while
recognizing the rights of the labor union to assembly, collective bargaining, and strike.
For that purpose, high-level labor-management meetings are generally held twice a year with theaim of promoting communication between labor and management, and business operations aremanaged with shared information and challenges.
In addition, at production briefings and labor-management meetings held once a month at eachplant, the plant managers and union representatives meet to exchange information and views
concerning the production situation and other matters.
Meanwhile the Labor-Management Study Committee meets regularly throughout the year to discuss
important labor-management issues such as the improvement of working conditions and review ofvarious systems from multifaceted, holistic and long-term perspectives, thus allowing labor andmanagement to work closely together to address various issues. The ratio of labor union members to
the employees of our company and domestic group companies is 89%.

103

Compliance with Fair Wages
Average income per employee for fiscal 2020 was 6,489,000 yen. At SUMCO, we divide thecompensation systems of employees into different courses according to the work they undertake,and based on the basic concept of “equal pay for equal work,” we properly compensate employees
based on their abilities, performance and contribution levels, offering the same treatment irrespectiveof gender. The SUMCO Group also follows laws and regulations regarding minimum wages in eachcountry, and fulfills its obligation to pay employees appropriate wages based on the local cost ofliving and other factors.

Employee Benefits Programs
SUMCO and Group companies in Japan offer employees a wide range of benefits packages as
guarantees for the future. In addition to Japan’s social security system, these include additional
health insurance association payments, and individual options such as enrolment in an employee
shareholding association, property accumulation savings, and group life insurance.

104

Human Resources Development
As declared in the SUMCO Vision, SUMCO aspires to become the "World's Best in Technology." Toreach this goal, diversified training opportunities are provided to employees at all levels, from new
recruits to managers and executives. We encourage employees to stay abreast of the changing
times, making every effort to foster the development of human resources who will be able to think
and act independently. Each year, up-and-coming engineers are also given the chance to present
their research findings to senior management as a means of enhancing their motivation. In addition,
we dispatch a certain number of engineers to the doctoral program at domestic universities every
year to develop highly specialized technical personnel.
In pursuit of "Empower Employee Awareness of Profit," another element to the SUMCO Vision, theSUMCO CEO AWARD was established as the SUMCO Group's highest award, part of a measure toboost employee awareness of participation. The award is annually presented to individuals andorganizations that have made meaningful contributions to enhancing corporate value. Along with thisaward, the Group also holds presentations by TPM teams annually in order to recognize outstanding
success.
Moreover, to achieve "Competitiveness in Overseas Markets" as declared in the SUMCO Vision, we areworking to cultivate an awareness of understanding and respecting a diverse range of cultures andvalues within the Group, and are endeavoring to develop globally competitive human resources byenhancing programs such as study abroad and foreign language learning schemes.
In 2020, a total 20,254 hours of company-wide training was held by departments in charge ofhuman resources.
Undergoing regular review, the training programs are revised in line with changing needs; moreover,many suggestions received from outside directors with a wealth of experience in training andeducation are incorporated, aimed at making them better programs.

Engineer Presentation Contest

Engineer Presentation Contest

105

Utilizing and Developing a Diverse Workforce

Employment of People with Disabilities
The SUMCO Group is actively working toemploy persons with disabilities, as

Employment Ratio of People with Disabilities (SUMCO
Group [Japan])demonstrated by SUMCO establishing acompany that specifically hires persons
with disabilities in Japan. In 2020,
1.71% of SUMCO Group's workforce
worldwide was comprised of persons
with disabilities. Looking only at Japan,that number comes to 2.34%.
Moving forward, the SUMCO Group willcontinue its efforts to fit the right
person to the right job in order to help
individual employees reach their full

* The figure for each fiscal year is the average of theperiod from January to December of the following year.

potential, as well as to provide employment opportunities and maintain and improve supportive work
environments for people with disabilities.

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

106

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

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

Regular employees(As of Dec. 31, 2020)

Regionemployees
(2020

Japan

average)
SUMCO

4,011

432

8,199
Consolidated

Japan

5,885

Overseas

2,314Southeast Asia

333

Total

Managers

Generalemployees

Total(As of Dec. 31,
2020)

Male

754

6,691

7,445

Female

52

702

754

Total

806

7,393

8,199

107

5,885
594

EuropeBreakdown of Employees (Consolidated)(As of Dec. 31, 2020)

North America

East Asia

767

Number of employees

1,364
23
8,199

Measures to Help Employees Balance Work and Childcare
Responsibilities
To provide employees who are raising children with a more comfortable workplace environment andto help them balance work with child-rearing, SUMCO has established child-care leave periods thatare longer than required by law, along with a diverse short working hour system. In 2016, theCompany set up SUMCO Nursery School Imari as an in-house day-care facility at our Kyushu Plant in
the Imari area, the largest site across the SUMCO Group. We also provide a day-care support
allowance at sites other than the Imari area.
Additionally, as a new form of regional contribution, the facility is also a community day-care service
based on the Japanese government's Comprehensive Support System for Children and Childrearing.
Accordingly, a portion of the capacity is made available to local residents who are not SUMCO
employees.
PT.SUMCO Indonesia also offers a scholarshipprogram for the children of its employees.
Looking ahead, SUMCO will continue to pursue avariety of initiatives to put in place a workplaceenvironment in which a diverse array of
employees can excel while ensuring aharmonious relationship with the local
community.

Scholarship program event at PT.SUMCO Indonesia

1082020 Data

Number of harassment consultation cases

2

Number of participants in harassment training for management-level employees

442

Resignation rate for personal reasons among permanent employees (graph below shows the

0.77%change in the past turnover rate)
Total hours of company-wide training held by
the Human Resources Dept.
Human resource development

20,254 hours

Percentage of employees who attended the17%

above training
Training hours per employee
Percentage of persons with disabilities employed

5.1 hours

Global Total

1.71%

Japan Only

2.34%

Change in resignation rate among permanent employees
2016

2017

2018

2019

2020

0.69%

0.57%

0.66%

0.83%

0.77%

Men

0.71%

0.43%

0.62%

0.73%

0.70%

Women

0.44%

2.53%

1.16%

2.08%

1.60%

Resignation rate for personalreasons

To ESG-oriented Investors

109

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

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

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

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

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

110Goal 2
Continuous review and consideration of various measures for materialization of work-lifebalance.

Action1. Continuously reviewing and considering effective and practicable measures to materialize worklife-balance.

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

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

111

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

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

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

112Safety and health Initiatives

Promotion Framework
For the purpose of maintaining and enhancing the Group's levels of safety, health and hygiene, theSUMCO Group annually convenes the Company-wide Safety and Health Committee in which report on
the status of safety and health-related initiatives and information sharing are made. The committee,
attended by the Chief Health Officer and other executives, reports on Group-wide activities related tosafety, health and hygiene management as well as major work-related accidents, and also reviews
and approves safety, health and hygiene-related issues and targets to be addressed in the following
fiscal year.
Additionally, each plant defines policies and objectives related to safety and health for each fiscal year
based on company-wide safety and health issues, and engages in daily activities to achieve thoseobjectives, through operating site safety and health committees, workplace safety and healthcommittees and small group safety meetings.
Company-wide Safety, Health and Hygiene Promotion Structure113

Meetings and Committees (Communication) Related to Safety, Health and Hygiene
Level

Meeting

Frequency

Main Participants

Functions

Chairman, officers, presidents ofaffiliate companies, plant generalCompany-wide
Safety and HealthCommittee

Once ayear

managers, department managers,

Review and discussion of SUMCO

labor union executive board,Group safety, hygiene and healthindustrial physicians, company-

management policies and measures

wide and operating site safety andhealth administrative offices
Chief Safety and Health Officer /Executive Officer in Charge,
Production Division
Safety and HealthCommittee

Once ayear

executive officers, plant general

Review and discussion ofmanagers, industrial physicians,

Production Division health, hygiene

company-wide and operating siteand safety measuressafety and health administrative
officesLabor union executive board (three
Labor-Management
Safety Round-Table
Meeting

Twice ayear

Review and discussion of SUMCO

branch manager), company-wideGroup (domestic) safety, hygiene

safety and health administrativeand health measuresofficeCompanywide

highest ranks of the board, union

Meeting of Safety
and Health
Personnel

Overseas Affiliate
Company Safety
Liaison Meeting

Once amonth

Six times
a year at
eachcompany

Workplace Safety

Company-wide and operating site

Review and discussion of SUMCO

safety and health administrative

Group (domestic) safety, hygiene

officesand health measures

Overseas affiliate company

Explanation of SUMCO Group

presidents and safety and health(domestic) safety and healthadministrative offices, company-

measures, and exchange ofwide safety and healthinformation on domestic andadministrative officeoverseas activities

Workplace safety and healthand HealthOnce apromotion personnel, company-

Promotion Personnel

monthwide safety and healthExchange Meeting

administrative office
Managers of each department,

Safety and Disaster
Prevention

Nine times

Departmenta yearInspections

workplace safety and healthpromotion personnel, companywide and operating site safety andhealth administrative offices

OperatingGeneral safety and health manager,

Site

plant general managers, labor
Safety and HealthOnce aunion branch management,

Committeemonthindustrial physicians, operating site
safety and health administrative

Explanation of SUMCO Group(domestic) safety and healthmeasures, and exchange of
information on activities between
operating sites
Confirmation and discussion on theimplementation status of SUMCO
Group (domestic) safety, hygieneand health-related measures

Review and discussion of operatingsite safety, hygiene and healthrelated policies and measuresoffices
Workplace Safety
Promotion
Committee

Workplace safety and healthOnce apromotion personnel, workplace

Detailed review and discussion ofmonthsafety and health administrative

operating site measuresoffices114

LevelOperating
Site

Meeting

Frequency

Main Participants

Functions

Department and section managers,
Workplace Safety

Once aand HealthmonthCommittee

group leaders, unit leaders,

departmental safety, hygiene andworkplace safety and healthpromotion personnel, contractor
managers

Contractor

Small Group Safety

Once aMeetings

month

Review and discussion ofhealth-related policies andmeasuresGroup leaders, unit leaders,Review and discussion of process-workplace safety and healthlevel safety, hygiene and health-promotion personnel

related measures

Safety Cooperation

Three

Representatives from contractors,

Association Meetingtimes aSUMCO (advisors, Facility(Kyushu Factory)

year

Engineering Department)

Discussion occupational accident
prevention at operating sites

Occupational Safety and Health Initiatives
The SUMCO Group has introduced an Occupational Safety and Health Management System (OSHMS)
and obtained certification from outside certification bodies, chiefly ISO 45001 certification, and has
implemented the system with the aim of achieving zero accidents in the workplace.
Under the system, the management defines a sequence of "Plan - Do - Check - Act" (PDCA) actions
to manage safety and health on a regular and voluntary basis, with the help of employees. This is asafety and health management framework designed to prevent work-related accidents, advance
employee health, promote the formation of a pleasant workplace environment and raise the level ofsafety and health in the workplace. We also work to quantify employee safety awareness throughperiodic safety awareness surveys, reflect the findings in the occupational safety and healthmanagement system, and make efforts to raise awareness of safety.
Status of Occupational Safety and Health Management System Certification
Total
Category

Number ofOperating
Sites

Group (Domestic /Overseas)

12

Number of

Certification

Certified
Operating Sites

Remarks

Rate (%)

10

83%

ISO 45001 certification: 7 operating sites
JISHA standard OSHMS certification: 1
operating site*1

Group (Domestic)

9

8

89%

(Scheduled to undergo ISO 45001
certification review in August 2021)
Sites planning to undergo ISO 45001
certification review in 2022: 1 operating site

Group (Overseas)

3

2

67%

ISO 45001 certification: 1 operating site
SMK3 certification: 1 operating site*2*1 JISHA standard OSHMS certification is provided by the Japan Industrial Safety & Health
Association*2 Certification provided by Indonesian National Standard (equivalent to OHSAS18001)
115

Major Initiatives to Prevent Work-Related and Traffic Accidents
The SUMCO Group conducts annual system audits (internal audits) of all operating sites inaccordance with its Occupational Safety and Health Management System. The SUMCO Group alsoendeavors to maintain and enhance safety management levels by seeking to prevent work-related
accidents through promoting voluntary safety and health initiatives and encouraging theadvancement of health and the formation of a pleasant workplace environment.
Additionally, when workers notice a potential hazard, they are obligated to report on it as a near misscase. Through the case reports and risk assessments, the risk factors at each operating site are
identified. We try to avert accidents by implementing countermeasures to these risks based on
hazard levels, and reducing the degree of risk posed accordingly. Information on these risks and thecorresponding countermeasures are shared across the entire SUMCO Group through Company-wide
meetings attended by the safety and health personnel at each operating site, safety exchange
meetings attended by the workplace safety and health promotion personnel at each operating site,and safety and health committee meetings at each operating site.
Additionally, through safety patrols conducted at each operating site and other regular safety andhealth patrols of each operating site by the Safety and Disaster Prevention Department, labor unions
and industrial physicians, we carry out inspections and other guidance on the state of safety andhealth management initiatives at the workplace as part of efforts to attain high levels of safety andhealth.

Safety and Health Education and Training Initiatives
The SUMCO Group focuses on employee education and training with the aim of preventing workrelated and traffic accidents. In terms of matters related to safety and health, we strive to prevent
accidents and minimize any damages or injuries caused by accidents. We achieve this by raising
employees' awareness while also having them learn about what actions to take in the event of an
emergency, not only through tiered safety and health education, but through workplace safety
meetings, risk prediction training (KYT), the viewing of chemical injury prevention DVDs produced inhouse and other safety-related DVDs and efforts to enhance sensitivity to danger by establishing"safety dojos" to simulate hazards at all of our operating sites.
Preventing traffic accidents is another key challenge, and the SUMCO Group strives to prevent traffic
accidents by providing traffic accident prevention training along with the viewing of DVDs on traffic
accident prevention, and KYT using videos of traffic accidents, and by providing driving analysis andguidance based on drive recorders installed in vehicles.

116

Main Education and Training Activities
Category

Name of Training

Induction training

Trainees

New employees

Frequency
Once amonth

Instructors
Company-wide and operatingsite safety and healthadministrative offices

General Safety and HealthTraining for newly appointed
safety managers

Manager appointees
Departmental and Sectional
Safety and Health Manager

Upon
selection

appointees
Statutory
Training

Unit leaders safety training

Newly appointed unit leaders

Various special training,

Employees engaged in thecourses for various licenses,

relevant work Supervisors ofskills training, etc.

the relevant work

Once ayear

Outside instructor

Whenengaging intherelevant
work
Various skills improvement

Qualification holder (every 5

Once aQualified in-house employee ortraining

years)

year

outside instructor

Newly appointed group

Once aCompany-wide Safety and Healthleadersyear

Administrative OfficeGroup leader safety training
Internal auditor development

Newly appointed internal

training

auditors

Internal auditor skills
improvement trainingGroup
Training

All internal auditors

Each time
Once aCompany-wide Safety and Healthyear

Administrative Office

Safety training for risk

Workplace safety and healthOnce aassessment, etc.

promotion personnel

year

OSHMS self-awarenesstraining (e-Learning)

Traffic accident prevention
training (e-Learning)

Safety confirmation drills
General disaster prevention
drillsLate-night evacuation drills

Once aAll employees

year

Once aAll employees

year
Four times

All employees

Employees and contractors

Shift workers

117

Outside instructor

Outside instructor
Planned by Company-wide
Safety and Health Administrative
OfficePlanned by Company-wide
Safety and Health Administrative
OfficeUse of safety confirmationa yearsystemOnce aOperating site safetyyearadministrative officeOnce aOperating site safetyyearadministrative officeExperiencing a simulated hazard (body parts crushed byExperiencing hazards (electric shock, overcurrent,or caught in machinery) at a "safety dojo"

tracking) at a "safety dojo"

Status of Occupational Accident Occurrences
With the aim of achieving zero
occupational accidents, the SUMCO

Change in the Accident Frequency Rate*(Domestic SUMCO Group)Group strives to create a safety, health,pleasant and appropriate workplaceenvironment by raising the level ofvarious activities it has conducted todate, developing and enhancing its
occupational safety and healthmanagement system by newly
obtaining ISO 45001 certifications, andby implementing safety awarenessraising activities based on the results ofsafety awareness surveys.
For the SUMCO Group and contractors,
the number of deaths due to* Accident Frequency Rate = Number of workers killed or
injured in occupational accidents (lost time injuries) /total number of working hours × 1,000,000

occupational accidents from 2017 to 2020 was zero.

118

Occupational Safety and Health Data
Indicator
Number of lost time
injuries

Number of accidents(lost time + non-losttime)

Number ofoccupational illnesses

Lost time injury
frequency rate

Accident frequency rate
(lost time and non-losttime)

Occupational injury
frequency rate (OIFR)

TargetGroup (Domestic /Overseas)
Contractors
Group (Domestic /Overseas)
Contractors
Group (Domestic /Overseas)
Contractors

Unit

2017

2018

2019

2020

cases

3

2

2

3

cases

0

0

0

0

cases

21

18

17

17

cases

0

0

0

0

cases

0

0

1*

0

cases

0

0

0

0

-

0.18

0.12

0.18

0.17

-

0.00

0.00

0.00

0.00

-

1.28

1.06

1.01

0.98

-

0.00

0.00

0.00

0.00

-

0.00

0.00

0.06*

0.00

-

0.00

0.00

0.00

0.00

Group (Domestic /Overseas)
Contractors
Group (Domestic /Overseas)
Contractors
Group (Domestic /Overseas)
Contractors* Backache (backache resulting from work-related accident)- Lost time accident frequency rate = Number of workers killed or injured in occupational accidents(lost time injuries) / total number of working hours × 1,000,000- Accident frequency rate (lost time + non-lost time) = Number of workers killed or injured in
occupational accidents (lost time + non-lost time) / total number of working hours × 1,000,000- Occupational injury frequency rate = Number of workers killed or injured in occupational accidents(occupational injuries) / total number of working hours × 1,000,000

Participation in Traffic Safety Initiatives
The Kyushu Plant is engaged in traﬃc safety
initiatives as a member of the Shiroishi
district's Safe Driving Supervisors Committee,
including annual participation in the "Traﬃc
Mirror Cleaning Initiative (March)" for mainly
local elementary and junior high schools and"Early Headlight Lighting Initiative (November)to encourage drivers to turn on their headlights
before it gets dark.

Early Headlight Lighting Initiative

SUMCO Technology Corporation also improves
the traﬃc safety environment in the industrial park where it is located and runs environmental
beautiﬁcation activities around its operating site as chair of the Noda City Sothern Factory Liaison
Council.
119

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

AwardAwarded site

Recognized by the Volunteer Fire Corps Factory of the
March 2016

Fire and Disaster Management Agency, Ministry of

Kyushu Factory (Imari), SUMCO Corp.

Internal Affairs and Communications
June 2016

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

Nagasaki Plant, SUMCO TECHXIV Corp.

October 2016

Excellent Safety Operations Facility Bronze Medal

Miyazaki Plant, SUMCO TECHXIV Corp.

October 2017

Yamagata Labor Bureau Director's Commendation

Yonezawa Plant, SUMCO Corp.

October 2017

December 2017

June 2018

Letter of Appreciation from Miyazaki Fire Prevention
Committee
Letter of Appreciation from Japanese Red Cross
Society (Blood donation)
Hazardous Material Safety Awards from Japan
Association for Safety of Hazardous Materials

Miyazaki Plant, SUMCO TECHXIV Corp.

Chitose Plant, SUMCO Corp.

SUMCO Technology Corp.

Commendation as Model Business Site for Safe Driving
September 2018

Management from the Miyazaki Prefecture Police

Miyazaki Plant, SUMCO TECHXIV Corp.

Headquarters
October 2018
February 2019

September 2019

October 2019

October 2020

November 2020

Silver Order of Merit from Japan Red Cross Society
Ministry of Health, Labour and Welfare Class 3 No
Accident Record (15.8 million hours)
Commendation for Business Operators with Excellent
Traffic Safety
Ministry of Health, Labour and Welfare Class 1 No
Accident Record (7.5 million hours)
Commendation from the Hokkaido Labor Bureau(Award for Excellence in Safety and Health)
Letter of Appreciation from Japanese Red Cross
Society (Blood donation)

120

SUMCO Technology Corp.
Kyushu Factory (Saga), SUMCO Corp.

Miyazaki Office, SUMTEC Service Corp.

Kyushu Factory (Kubara), SUMCO Corp.

Chitose Plant, SUMCO Corp.

Kyushu Factory, SUMCO Corp.

Promotion of Health

The SUMCO Group's Approach to Employees' Health
Under the principle that “the safety and health of employees take the highest priority over all,” theSUMCO Group strives to create a bright, lively and fulfilling workplace. The Group has announced the
SUMCO Group Health Declaration both internally and externally, and strategically promotes various
health advancement activities as investment in health.

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

Health Promotion Framework
The Company-wide Health Committee

Health-related Meetingsand Health Promotion Meeting areconvened regularly. These bodies reporton the status of initiatives andattainment level of health objectives(KPIs) for each site, and reflect finding
in the planning of new measures andimprovement activities. As expert
knowledge is important to promotethese improvements, working primarily
through the supervising industrial
physician in the Health Promotion
Section under the Human Resources
Department, industrial physicians, fulltime public health nurses and regularnurses (11 full-time, 2 part-time) have been assigned to each site of the SUMCO Group to offer
Group employees individual health guidance, meetings and smoking cessation support, as well as topromote health and productivity management including efforts to improve the workplaceenvironment through stress checks, mental health training, and other services.

121

Health and Productivity Management Initiatives
We promote initiatives to maintain and improve
the health of each employee as a company
through various well-planned company-wide
initiatives.
In recognition of initiative aimed at employee health, for the third consecutive years since 2019 theSUMCO Group has been certified under the 2021 Certified Health & Productivity Management
Outstanding Organizations Recognition Program (Top 500) selected by the Ministry of Economy,
Trade and Industry and Nippon Kenko Kaigi.

Our health management challenges
We focus on three health management issues: "1. mental health," "2. smoking cessation," and "3.
lifestyle-related diseases," set target values, create medium- to long-term plans, and carry out
activities.

1. Mental Health
SUMCO believes that maintaining good mental health among employees leads to the development ofa workplace environment where employees meet the high demands of customers, be highly
productive and work with vitality. As a part of the primary prevention of mental health issues, since2003 SUMCO has been operating and assessing workplace environment improvement activities aspart of its occupational safety and health management system (OSHMS).
In addition, based on the results of stress checks conducted regarding workplace environment
improvements at each workplace, we have each employee exchange feedback aimed at
improvements to be made within the workplace, decide on and implement action items, and postcollections of effective initiatives as good practices on the company intranet site.
Main Action Items
Mental health training (stratified training, e-learning) and consultation framework for counselors
and other staff
Workplace environment improvement activities based on stress check results

122

Results of Activities
Results of Activities 1. Workplace Environment Improvements Based on Stress Check Results*1 General health risk is calculated from the stress check using a work stress determination chart.
*2 ERI-adjusted general health risk is calculated using general health risk and an effort reward
imbalance model.

123

Results of Activities 2. Workplace Environment Improvements Based on Stress Check Results(Examples of Good Practices)

Good Practice 1. ON/OFF Balance Award, Kyushu Factory (Kubara),
Technical Staff
As one of the issues revealed by the results of the workplace stress check, it was found thatthe labor management points for the mental health environment were low. One of the factors
behind this was that a weekly no-overtime day had not taken root. To address this, noovertime days were communicated to everyone in advance, and the results were thoroughlymanaged. This improved the percentage of no-overtime days implemented and improved thesituation of overtime on those days. The labor management indicator section in the stresscheck results the following year showed a 6.4 point year-on-year improvement, achieving aworkplace environment allowing employees to strike an even better balance between being on
and off work.

124

Good Practice 2. Ease of Work Award, Kyushu Factory (Nagahama),
Equipment Staff
With some 90 workers at the section it is a large group, and due to the nature of the business,the site often receives telephone calls from outside manufacturers. When staff get busy
redirecting many calls, it can have an impact on other duties, posing an issue for carrying out
work. Therefore as a solution, direct dial-in numbers were introduced. As a result of printing
the direct numbers on worker business cards as well as outside fax and email messages, thetime spent handling phone calls was streamlined by 21.5 minutes a day, and 88.15 hours ayear.

2. Activities to Encourage Smoking Cessation
In January 2020, a survey on smoking was conducted among all Group employees. Trend analysis
was conducted on factors such as smoking frequency and number of smoking sessions by employees
who are smokers, and as a result of conducting smoking cessation training and individual healthguidance in light of the various traits and age groups, the smoking rate among Group employees has
gradually trended downward, from 46% in 2018 to 38.2% in 2019 and 36.6% in 2020.
Additionally, to coincide with the closure of all smoking areas within SUMCO Group premises as ameasure related to the nationwide spread of COVID-19, we reviewed our system to allow outpatient
treatment for smoking cessation without co-payments as part of efforts to promote smoking
cessation.

125

Main Action Items
Trend analysis based on results of survey of all employees on smoking
Smoking cessation training based on the results of the above survey and encouraging the use ofsmoking cessation treatment through individual health guidance
Workplace anti-smoking challenge race
Closure of smoking areas on company-premises as a COVID-19 related measure

3. Measures to Address Lifestyle-related Disease, Other Initiatives
The results of periodic medical checkups show that the percentage of employees with metabolic
syndrome increases between the ages of 30 and 40. We therefore surveyed the exercise practices
and eating habits of all employees aged 39 in advance, providing dietary guidance from a nutritionist
and exercise guidance from an outside instructor. The effects of these efforts were verified, leading to
improved indicators the following year.
Additionally, due to the advancing age structure of the workforce, we assume that incidents of falls
and trips will increase. To address this, we have assessed the motor functions of employees in a joint
initiative with the Department of Sports Science at Fukuoka University to develop the SUMCO Fall
Prevention Exercises and implement them in-house.
Main Action Items
Health education for employees at age 39
Walking activities
Individual health guidance following regular medical checkups (including guidance to improveblood pressure and blood glucose levels)
SUMCO fall prevention exercises

Measuring rice as part of dietary guidance

Slow jogging

126

4. Results and Medium-term Targets for Mental Health, Smoking Cessation andLifestyle-related Disease Issues
Assessment Item2018 Results

2019 Results

2020 Results

Medium-TermTargets (2025)

ERI-adjusted general health risk

106.0

100.0

99.0

100 or lower

Current smoker

40.6%

38.2%

36.6%

20.0%

26.3%

26.9%

28.6%

25.0%

24.2%

25.4%

28.4%

35.0%

38.9%

32.6%

31.1%

24.0%

Percentage of Employees with Metabolic
Syndrome
Exercising for 30 minutes or more / week
Percentage of employees not feeling refreshed
after a night’s sleep

Comprehensive Indicators of SUMCO’s Health and Productivity
Management and Their Development into a Strategic Map of Each
Initiative
By working on health and productivity management, SUMCO believes that the benefits go further
than solving issues centered around on mental health, smoking cessation and lifestyle-relateddisease. That is because preventing the possibility of poor health or reduced productivity due toinjury or illness and outcomes closely associated with the above issues leads to reduced risk of illness
and injury and lower medical expenses, ensuring a workforce that will work with vitality(demonstrating high engagement including job commitment, satisfaction and fulfillment). To visualize
these situations, we have quantified comprehensive indicators and plotted them to a strategy map tostrategically develop a framework for each initiative as health investment and obtain results. This
allows us to conduct evaluations each year, leading to the necessary measures being implemented in
the future.

Comprehensive Indicators
Reduced productivity indicators: presenteeism (reduced productivity when attending work despite
poor health or physical condition), absenteeism (missing work due to poor health or physicalcondition)
Indicators of vitality level: work engagement, job fulfillment, job satisfaction

127Overview of the SUMCO Health and Productivity Management Strategy Map

128

Results of Activities
Results of Activities 2. Work Engagement

Results of Activities 1. Presenteeism and
Absenteeism (From Employee Questionnaire(From Employee Questionnaire Survey)

Survey)* Work Engagement: average points from
employee questionnaire on nine items
regarding work (7-grade evaluation from 0 to
6 points)
Results of Activities 3. Employee Satisfaction
and Job Fulﬁllment (From Employee
Questionnaire Survey)*1 satisfaction: the percentage of employees
who responded that they were “satisﬁed” or“somewhat satisﬁed” with their job*2 Employee Satisfaction of Job fulﬁllment: thepercentage of employees who responded“yes” or “somewhat yes” as to whether they
are in a fulﬁlling job

129

VoiceSupervising Industrial Physician
Minako Iyadomi

Creation of the SUMCO Health and Productivity Management Strategy Map
As an expert, I was involved in the creation of the SUMCO Health and Productivity Management
Strategy Map and used the data accumulated by SUMCO combined with searches of literatureon the relationships between each disease and productivity indicators to verify the validity oflinking each item on the strategy map. Through the strategy map, we now have a clearer
picture of the items to be added in the annual safety and health plan and how indicators
related to employee health such as mental health, lifestyle-related disease and smoking, alongwith final indicators, lead to the resolution of issues in health and productivity management. By
visualizing health and productivity management, I expect that employees will develop a greater
understanding of and commitment to the various initiatives being undertaken.

130Initiatives to Prevent COVID-19 Infections
The SUMCO Group has activated its Business Continuity Plan (BCP), summarized its own guidelines inlight of information including press materials from the Ministry of Health, Labour and Welfare,academic groups such as the Japan Society for Occupational Health and Keidanren guidelines, andtaken measures to prevent infection on that basis.
The major actions we have taken are as follows:
1. Newly established a special leave system for employees in poor physical condition
We are striving to identify infected employees inside the company at an early stage and preventthe spread of infections by being among the first companies to newly establish a special leavesystem where employees, whether full-time or temporary, are asked to stay home if not feelingwell and presenting cold-like symptoms, after which their condition is monitored by healthcare
staff.
2. Formulation and Implementation of Infection Prevention Measures During Work
Employees are required to wear non-woven masks during work, for which they are paid anallowance(excluding inappropriate workplaces due to the nature of work, such as clean rooms)
We have set and thoroughly enforce restrictions on the number of people in meeting rooms,
ventilation rules, and sterilization rules for shared PCs, switches and other equipment
Partitions have been established in break rooms and cafeterias (places where people remove theirmasks to eat or drink), and engage in the monitoring and management of usage times andseating locations
Temporary closure of smoking areas
3. Promoting Migration to Web-based Systems
Conducting company-wide events, meetings and training over the web
In addition to conducting company entrance ceremonies, various presentations and othercompany-wide events entirely online, we have also switched from face-to-face to online formats
for various training.
We are implementing telework in Tokyo, Osaka and Fukuoka.
Once vaccinations become available, we will encourage employees to get vaccinated and to ourutmost to further minimize the risks of infection.

To ESG-oriented Investors

131

Community-based Social Contribution
Activities
Why SUMCO Addresses the Local Community
The SUMCO Group sees existing in harmony with the local community and contributing to theregion as one of the corporate social responsibilities.
In SUMCO CSR Policy, the SUMCO Group declares that "SUMCO shall respect various culturesand histories, and shall interact with society and the local communities." We take into accountlocal communities' expectations for SUMCO and focus on the following in particular, in an effort
to be a company that can contribute to the local community as a good corporate citizen.
1. Activities aimed at the local environment, safety, and disaster prevention
2. Activities aimed at providing education, culture promotion and sports promotion to the local
community
3. Activities to support persons with disabilities
Due to the impact of COVID-19 in fiscal year 2020, there were activities we were unable toperform to the same extent as regular years, including having to cancel some activities
altogether, but for its part the SUMCO Group hopes to continue to focus on community-basedsocial contribution activities going forward.

132

Participation in Local Cleaning Activities andEnvironmental Conservation Initiatives
SUMCO’s Chitose Plant implements a clean-up
program on approximately 1.5 km of sidewalks
along the main roads of the Chitose Industrial
Complex where the plant is located. Plant
members pick up empty cans and trash thathave been discarded, as well as fallen leaves
and other refuse.
SUMCO's JSQ Division participates annually in
the Omono River Basin Joint Clean-up
organized by Akita City with the participationof local residents and nearby companies.
SUMCO's Yonezawa Plant actively engages invarious local environmental activities as a

Clean-up activities on the grounds

member of the Hachimanpara Corporateof the Chitose Industrial Complex

Council made up of companies located in the Hachimanpara Industrial Park. The activities include
cleaning up areas inside the park and along major roads.
At the Nagasaki Plant of SUMCO TECHXIV Corporation, many employees and their families participate
each year in the cleanup of the Omura Bay coastal area organized by the Omura Bay Cleanup
Project.
Additionally in November 2020, member of the Miyazaki Plant of SUMCO TECHXIV Corporation took
part in tree thinning operations with the aim of preserving pine forests in the Hitotsuba Coast area ofMiyazaki City.
SUMCO Technology Corporation regularly takes part in cleanup operations along nearby municipal
roads and sidewalks, and also engages in cleanup activities within the industrial park where its plant
is located. Although activities were paused in 2020 due to the COVID-19 pandemic, SUMCO
Technology Corporation participates annually in the Edogawa Clean Campaign organized by the
Edogawa River Office of the Ministry of Land, Infrastructure, Transport and Tourism and 13 othermunicipalities around Noda City as a member of the Southern Plant Liaison Council. The activities
include collecting discarded cans and bottles, etc. and performing cleanup activities on the riverbed,
embankments and side ditches along the Edogawa River.
In September 2020, SUMCO Taiwan Technology Corporation participated in the International Coastal
Cleanup (ICC) program organized by the international environmental protection group Ocean
Conservancy to pick up more than 500 kilograms of trash around Nanliaobeike Park.

133

Omura Bay coastal area joint clean-up

International Coastal Cleanup at Taiwan

Thinning operations in the Hitotsuba Coast area

134

Greening Initiatives
At the Chitose Plant, in June each year, weenter the "Flower-Filled Contest" hosted by
Chitose City's greening promotion foundation(Chitose Environment and Greenery
Foundation) and plant colorful flowers in thegreen belt on roads around the plant. In fiscal
year 2020 the plant was awarded theexcellence prize in the contest.
At the Noda Operation Department of SUMCO
Support Corporation*, we conduct "Flower
Project" initiatives including the voluntary
creation of flower beds and planting of seeds

Greening promotion activities at the Chitose Plant

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

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

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

135Interaction with local educational institutions
At the Nagasaki Plant of SUMCO TECHXIV
Corporation, we have maintained a relationshipwith local high schools since the establishment of
the plant. Every year, we host study tours to
inspect the production process or the extra highvoltage monitoring room for the power intake
facility, as well as providing internships.
Responding to requests from local high schools,
we also send employees to give lectures on

Dispatching employee instructors to local high schools

semiconductors.
Each year, PT. SUMCO Indonesia works with local high schools, universities and graduate colleges tooperate apprenticeship programs that run from 12 to 24 weeks, giving students the opportunity todevelop their future careers.

Scene from the apprenticeship program

Scene from the apprenticeship program

136

Participation and Sponsorship of Sports Events
SUMCO participates in and sponsors local sports events. The SUMCO
Kyushu Factory co-sponsors the IMARI HALF-MARATHON every year.
In 2021 the event was held online as a new kind of challenge due to
COVID-19, and around 2,000 participants from around Japan entered.
Additionally, the SUMCO Imari Road Relay Race Team fielded by the
Kyushu Factory took part in the 73rd Tozai Matsuura Relay Race
Competition (sponsored by Saga Shimbun) held in January 2020,
winning its 14th championship overall and third consecutive victory
while also breaking the competition record. This year the team had
been training regularly in hopes of a fourth straight win, but the 74th
running of the event was postponed by one year in order to prevent theThe 73rd Tozai Matsuura

spread of COVID-19 infections.
The SUMCO TECHXIV Corp. Nagasaki Plant sponsored Omura Bay
ZEKKEI Ride 2019. The event is a cycling race that makes a circuit ofRelay Race Competition(courtesy Saga Shimbun)

Omura Bay and is jointly hosted by municipalities located around the bay. The race attracts cycling
enthusiasts from around Japan who come in search of the area’s beautiful scenery.

137

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

Scenes of Warm-up London activities.

Scenes of Warm-up London activities.

138

VoiceIchiro Omura
Director
Next Gen. Power Electronics Research Center
Professor
Graduate School of Life Science and Systems Engineering
Department of Biological Functions Engineering
Kyushu Institute of Technology

Q1. What are you working on in the SUMCO joint research course, and how
significant is it?
Kyushu Institute of Technology, we launched a research course inside the department on a
joint basis with SUMCO in fiscal year 2017. Under the theme of high-quality power
semiconductor wafer evaluation methods, we have conducted a number of joint research
projects with SUMCO researchers and researchers at our Next Generation Power Electronics
Research Center. In particular, we share trends in power semiconductor-related technologies
and pursue research that prioritizes the development of high-precision wafer quality evaluation
technologies and the application of simulation technologies. Through establishment of joint
research courses, issues can be shared between companies and universities, and excellent
result-focused outcomes can be produced.

Q2. SUMCO has been pursuing coordination between industry and academia
along with initiatives to contribute to local communities. What do you think
about these activities?
In fiscal year 2018, the Next Generation Power Electronics Research Center received theMinster of the Environment Award for Global Warming Prevention Activity for its research into
power semiconductors. Moreover, SUMCO is a top global producer of high-quality wafers thatare essential in the manufacturing of power semiconductors that contribute to lower CO2
emissions. By having both of us coordinate with one another from a long-term perspective, I
think we are bringing greater sophistication to semiconductor technologies and low-carbon
technologies in the Kyushu area, strongly promoting the development of human resources in
the field, and making significant contributions to the social challenges of preventing global
warming and utilizing electricity effectively.
(This interview was conducted in April 2019.)

139

Participation in Local Events
Each year at the Uesugi Snow Lantern Festival, a famous winter festival that takes place inYonezawa, SUMCO's Yonezawa Plant produces snow lanterns, a winter tradition in Yonezawa, in aneffort to vitalize the local area.
In order to bring excitement to local events as a company that has established business sites in Imari
City, SUMCO's Kyushu Factory participates yearly in the Imari Autumn Festival - Imari Dance in All asa means of contributing to local revitalization. In fiscal year 2020, however, the event was cancelled
due to the COVID-19 pandemic.
Additionally, SUMCO's JSQ Division supports activities of the "Barajima Kanto Group," which is locatedin Barajima, Akita and headed by a SUMCO Employee. The group participates by performing in the
Akita Kanto Festival every year, where they put on energetic performances.

* The "Kanto Myogikai" is a pole lantern performance contest that takes place during the day as partof the Akita Kanto Festival, with the objective of preserving skills in lantern balancing and its
musical accompaniment. Pole lantern performances during the night are called "Yoru Kanto."

Participates in an annual event, the "Imari Autumn

Performance for the JSQ Division

Festival–Imari Dance in All"

Producing snow lanterns at the Uesugi Snow Lantern
Festival

To ESG-oriented Investors
140

Social Data (personnel)
Number of Employees

item

Value

Segment

Remarks

8,199

Consolidated

As of Dec. 31, 2020

Men

7,445

Consolidated

Women

754

Consolidated

9.2%

Consolidated

806

Consolidated

Men

754

Consolidated

Women

52

Consolidated

6.5%

Consolidated

11

SUMCO

Men

10

SUMCO

Women

1

SUMCO

9.1%

SUMCO

73

SUMCO

Men

58

SUMCO

Women

15

SUMCO

20.5%

SUMCO

Men

17.4

SUMCO

Women

14.4

SUMCO

3.0 years

SUMCO

Total
workfoce

Employee

Percentageof women
employees
Total
NumberNumber of senior
management

As of Dec. 31, 2020

Percentageof women inseniormanagement
Total
directors

Number of directors on
board

As of Dec. 31, 2020

Percentageof women
directors on
the board
Total
Number

Newly Hired Employees

Percentageof women
employees in
new hires

Average years employed

Difference inaverage141

As of 2020

Site Data (2020 results)
2020 data on the acquisition status of ISO 14001 certification for the SUMCO Group's businesssites/plants and regulated substances discharged from each site/plant to the surrounding air andwater.

Kyushu Factory (Nagahama)/Kyushu Factory (Kubara)/Kyushu Factory(Saga)Name of business site/plant

Kyushu Factory(Nagahama)
Design, development andScope of business

manufacture of siliconwafersStatus of acquisition of
ISO 14001:2015

Kyushu Factory (Saga)

Design, development and

Design, development andmanufacture ofmanufacture of

monocrystalline siliconmonocrystalline siliconingots and silicon wafers

ingots and silicon wafers

Examining

Japan Quality Assurance

Japan Quality Assurance

Japan Quality Assuranceorganization

Organization

Organization

Organization

January 11, 1999

January 11, 1999

January 11, 1999

January 11, 2023

January 11, 2023

January 11, 2023

Date ofacquisition

certification

Kyushu Factory (Kubara)

Date ofrenewalAir

Measurement results (regulation value)

Nitrogen oxides (NOx)ppm

Boiler 71 (150)

Boiler 61 (150)

Boiler 61 (110)

Sulfur oxides (SOx)m3N/hBoiler ND (0.44-0.85)

Boiler ND (1.15)/

Soot and dust

g/m3N

/

/

Boiler ND (0.001)

142

Regulation

Measure-Regulation

Measure-Regulation

Measure-value

ment result

value

ment result

value

ment result

mg/ℓ

/

/

/

/

10

9

mg/ℓ

30

9

30

8

/

/

Suspended solids (SS)

mg/ℓ

30

10

30

8

25

13

N-hexane extract

mg/ℓ

5

ND

5

ND

3

ND

Iodine consumption

mg/ℓ

/

/

/

/

/

/

Fluorine and its compounds

mg/ℓ

8

5.0

8

2.0

3

1.3

Ammoniac nitrogen

mg/ℓ

Nitrate nitrogen

mg/ℓ

80

19

80

14

100

13

Nitrite-nitrogen

mg/ℓ

Nitrogen content (T-N)

mg/ℓ

120

44

120

21

60

17

Chromium content (T-Cr)

mg/ℓ

0.2

ND

0.2

ND

0.2

ND

Phosphorus content (T-P)

mg/ℓ

12

0.3

12

0.3

8

1.0

Arsenic

mg/ℓ

0.05

ND

0.05

ND

0.1

ND

mg/ℓ

0.1

ND

0.1

ND

0.1

ND

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

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

143

Noda Office/Yonezawa Plant

Name of business site/plant

Noda Office

Scope of businessYonezawa Plant

Manufacture of silicon wafers
Examiningorganization

Status of acquisition of
ISO 14001:2015

of monocrystalline silicon ingots

Japan Quality Assurance Organization

Japan Quality Assurance Organization

January 11, 1999

January 11, 1999

January 11, 2023

January 11, 2023

Date ofacquisition

certification

Design, development and manufacture

Date ofrenewalAir

Measurement results (regulation value)

Nitrogen oxides (NOx)ppm

Boiler 75 (260)/

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

Soot and dust

g/m3N

Boiler 0.0 (0.3)

/

Water
Biological oxygen demand

Regulation value

Measurement
resultRegulation value

Measurement
result

mg/ℓ

25

13

600

63

mg/ℓ

20*1

11

/

/

Suspended solids (SS)

mg/ℓ

50

10

600

71

N-hexane extract

mg/ℓ

3

ND

5

2

Iodine consumption

mg/ℓ

/

/

220

4

mg/ℓ

8

6.1

8*2

3.2

100

8

380

170

(BOD)
Chemical oxygen demand(COD)

Fluorine and its
compounds
Ammoniac nitrogen

mg/ℓ

Nitrate nitrogen

mg/ℓ

Nitrite-nitrogen

mg/ℓ

Nitrogen content (T-N)

mg/ℓ

30

18

/

/

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

/

/

*1 At the Noda office, since Tokyo Bay pollutant load restrictions apply, it is also subject to chemical
oxygen demand (COD) restrictions.
*2 At the Yonezawa Plant, treated wastewater is discharged into public sewerage systems and isthus subject to the Sewerage Act. (Destination of treated waste water outﬂowing from seweragetreatment site: river) Accordingly, the regulation value for ﬂuoridation compound is 8 mg/ℓ.
144

Chitose Plant/JSQ Division

Name of business site/plant
Scope of businessExaminingorganization
Status of acquisition of
ISO 14001:2015

Chitose Plant

JSQ Division

Design, development and manufacture

Design, development and manufactureof silicon wafersof quartz crucibles

Japan Quality Assurance Organization

Japan Quality Assurance Organization

January 11, 1999

January 11, 1999

January 11, 2023

January 11, 2023

Date ofacquisition

certification

Date ofrenewalAir

Measurement results (regulation value)

Nitrogen oxides (NOx)

ppm

/

/

Sulfur oxides (SOx)

m3N/h

/

/

Soot and dust

g/m3N

/

Firing furnace 0.08 (0.2)

Water
Biological oxygen demand

Regulation value

Measurement
resultRegulation value

Measurement
result

mg/ℓ

600

1

160

6

mg/ℓ

/

/

/

/

Suspended solids (SS)

mg/ℓ

600

8

200

23

N-hexane extract

mg/ℓ

5

2

5

ND

Iodine consumption

mg/ℓ

/

/

/

/

mg/ℓ

8*

5.3

8

0.8

/

/

100

4

(BOD)
Chemical oxygen demand(COD)

Fluorine and its
compounds
Ammoniac nitrogen

mg/ℓ

Nitrate nitrogen

mg/ℓ

Nitrite-nitrogen

mg/ℓ

Nitrogen content (T-N)

mg/ℓ

/

/

120

5

Chromium content (T-Cr)

mg/ℓ

2

ND

2

ND

Phosphorus content (T-P)

mg/ℓ

/

/

16

0.2

Arsenic

mg/ℓ

/

/

0.1

ND

Trichloroethylene

mg/ℓ

/

/

0.1

ND

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

145

SUMCO TECHXIV Corporation Nagasaki Plant/SUMCO TECHXIV
Corporation Miyazaki Plant
Name of business site/plant

Scope of businessExaminingorganization
Status of acquisition of
ISO 14001:2015

SUMCO TECHXIV Corporation (STC)

SUMCO TECHXIV Corporation (STC)

Nagasaki Plant

Miyazaki Plant

Design, development and manufacture

Design, development and manufactureof monocrystalline silicon ingots andof monocrystalline silicon ingots andsilicon wafers

silicon wafers

Japan Quality Assurance Organization

Japan Quality Assurance Organization

January 11, 1999

January 11, 1999

January 11, 2023

January 11, 2023

Date ofacquisition

certification

Date ofrenewalAir

Measurement results (regulation value)

Nitrogen oxides (NOx)ppm

Boiler 62 (260)

Boiler 61 (150)

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

Soot and dust

g/m3N

Boiler ND (0.3)

Boiler ND (0.1)*2

Water
Biological oxygen demand

Regulation value

Measurement
resultRegulation value

Measurement
result

mg/ℓ

600

56

25

7

mg/ℓ

/

/

/

/

Suspended solids (SS)

mg/ℓ

600

20

30

3

N-hexane extract

mg/ℓ

5

ND

5

ND

Iodine consumption

mg/ℓ

/

/

/

/

mg/ℓ

15*1

7.3

8

1.1

380

42

100

9

(BOD)
Chemical oxygen demand(COD)

Fluorine and its
compounds
Ammoniac nitrogen

mg/ℓ

Nitrate nitrogen

mg/ℓ

Nitrite-nitrogen

mg/ℓ

Nitrogen content (T-N)

mg/ℓ

240

89

120

6

Chromium content (T-Cr)

mg/ℓ

2

ND

0.2

ND

Phosphorus content (T-P)

mg/ℓ

32

0.3

16

0.0

Arsenic

mg/ℓ

0.1

0.001

/

/

Trichloroethylene

mg/ℓ

0.1

ND

/

/

*1 At STC Nagasaki plant, treated wastewater is discharged into public sewerage systems and isthus subject to the Sewerage Act. (Destination of treated wastewater outﬂowing from seweragetreatment site: the sea) Accordingly, the regulation value for ﬂuoridation compound is 15 mg/ℓ.
*2 The frequency of atmospheric soot and dust measurements at STC Miyazaki was revised to once
every ﬁve years (the next measurement will be taken in 2023).
146

SUMCO Phoenix Corporation Albuquerque Plant/SUMCO Phoenix
Corporation Phoenix Plant

Name of business site/plant

SUMCO Phoenix Corporation (SPX)SUMCO Phoenix Corporation (SPX)

Albuquerque Plant

Phoenix Plant

Design, development and manufacture

Scope of businessof silicon wafers
Examiningorganization

Status of acquisition of
ISO 14001:2015

Date ofacquisition

certification

Date ofrenewalDesign, development and manufactureof monocrystalline silicon ingots andsilicon wafers

DNV

DNV

June 19, 2000

June 19, 2000

June 30, 2021

June 30, 2021

Air

Measurement results (regulation value)

Nitrogen oxides (NOx)ton/y1.7 (10.2)

12.2 (24.6)

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

0.34 (1.25)

PM10 (Particulate Matter)ton/y

0.1 (0.84)

0.7 (2.5)

Water
Biological oxygen demand

Regulation value

Measurement
result*Regulation value

Measurement
result

mg/ℓ

/

/

/

/

mg/ℓ

/

/

/

/

Arsenic

mg/ℓ

2.09

/

0.13

0.01

Cadmium

mg/ℓ

/

/

0.047

0.002

Copper

mg/ℓ

/

/

1.5

0.0

Cyanide

mg/ℓ

0.5

/

2

0.0

mg/ℓ

36

/

/

/

Lead

mg/ℓ

1.0

/

0.41

0.01

Mercury

mg/ℓ

0.004

/

0.00230.0002

Molybdenum

mg/ℓ

2.0

/

/

/

Selenium

mg/ℓ

0.46

/

0.1

0.01

Silver

mg/ℓ

5.0

/

1.2

0.0

Zinc

mg/ℓ

2.2

/

3.5

0.1

Suspended solids (SS)

mg/ℓ

/

/

/

/

(BOD)
Chemical oxygen demand(COD)

Fluorine and its
compounds* At the Albuquerque Plant, only pH and water flow rate measurements are required, and the City of
Albuquerque periodically takes wastewater measurements.
147

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