Sustainability
Report����Editorial Policy

CONTENTS

Top Message……………………………………………………… ��Eﬀective Use of Water Resources ………………………… ��

SUMCO Vision …………………………………………………… ��

Initiatives for Biodiversity Activities ……………………… ��

CSR and Sustainability Promotion Structure ……………… ��
SUMCO CSR Policy ……………………………………………… ��

Chemical Substance Management ………………………… ��Disclosure Based on TCFD Recommendations ………… ��Materiality (Key Issues) ………………………………………… ��Social ……………………………………………………………… ��

Sustainable Development Goals (SDGs) …………………… ��

Fair Disclosure of Corporate Information ………………… ��

The SUMCO Group's Business Activities and theGovernance ……………………………………………………… ��

Corporate Governance ……………………………………… ��Compliance …………………………………………………… ��
Risk Management …………………………………………… ��

SUMCO Group Taxation Policies …………………………… ��
SUMCO DX Policy …………………………………………… ��

Environmental …………………………………………………… ��
Environmental Management ……………………………… ��

Environmental Load of Business Activities ……………… ��
Combating Global Warming………………………………… ��
Reduction of Waste ………………………………………… ��

Speedy, Accurate and

The Pursuit of Quality and Reliability …………………… ��
Supply Chain ………………………………………………… ��
Respect for Human Rights ………………………………… ���

Human Resources Development and Utilization ……… ���
Initiatives for Safety and Health …………………………… ���
Health and Productivity Management Initiatives ……… ���Community-based Social Contribution Activities ……… ���
Basic Policy on Safety

and Health・Health Declaration …………………………… ���
Support Raising Next-Generation Children ……………… ���Social Data (personnel)…………………………………… ���

Site Data (���� results) ………………………………………… ���

Editorial Policy

The objective of this report is to convey the SUMCO Groups’ stance on CSR and report its activities to stakeholde rs in order toenhance their understanding and earn their support. This report has been prepared with reference to portions of the Global Reporting
Initiative (GRI) Sustainability Reporting Guidelines, Standards.
Period Covered

January ���� to December ����Data for periods outside the above are noted as such.
Organizations Covered

SUMCO Corporation and its Group companies.

“SUMCO” and “the Company” as used in this report refers to SUMCO Corporation.

The Financial Highlights cover SUMCO Corporation and its consolidated subsidiaries. Other performance data outside the above
scope are noted as such.
Publication
July ����

Note Regarding Forward-Looking Statements

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

Top Message

CEO & Chairman of the Board

Mayuki HashimotoContributing to Society through SUMCO’s Silicon Wafers
Semiconductor devices are used in every facet of our lives, from information terminal devices suchas smartphones and personal computers, communications equipment essential for remote work ,which have expanded dramatically during the COVID-19 pandemic, data centers that process andstore large volumes of electronic data, home appliances including televisions and air conditioners,
medical devices that affect human lives, 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.
Additionally, the SUMCO Group’s silicon wafers are used in various devices that are indispensable forsaving energy, promoting clean energy, and reducing greenhouse gas emissions, such as powersaving semiconductor devices, IGBTs for electric vehicles (EV) and hybrid vehicles, and powermanagement devices for renewable energy such as solar and wind power generation.
The SUMCO Group will continue to contribute to the development of industries, improvement ofquality of life, solving social issues, and the realization of a sustainable society through the stablesupply of silicon wafers that support our daily lives and the technological development of cuttingedge silicon wafers that drive the advancement of semiconductor devices.

1

Promotion of CSR and Sustainability Activities
Aiming to be a Good Corporate Citizen, the SUMCO Group has established the SUMCO CSR Policy,
identified priority issues to be addressed to solve social issues and enhance sustainable corporate
value as ‘materiality,’ and is actively engaged in CSR and sustainability promotion activities toachieve the goals.
Furthermore, we enhance our organizational structure, to strengthen CSR and sustainability
activities by appointing an Executive Officer Responsible for Sustainability Promotion, as well as
regularly holding "Sustainability Promotion Council" to discuss sustainability promotion activities
throughout the Group.
The SUMCO Group will continue to actively adopt ideas and requests of stakeholders and enhance
CSR and sustainability activities.

2

CSR and Sustainability Promotion Structure
Message from an Executive Oﬃcer Responsible for Sustainability
Promotion
Managing Executive Officer, an Executive Officer Responsible for Sustainability Promotion
Atsuro Fujii

Promoting CSR and ESG/SDGs initiatives
Guided by the SUMCO CSR Policy, the Company has been committed to CSR and sustainability
promotion activities, considering it our corporate social responsibility to value all stakeholders,
including customers, shareholders, suppliers, employees, and all of society including the global
environment.

SUMCO CSR Policy
1. Supported by its cutting edge technology, SUMCO shall steadily provide products andservice with excellent quality, ability and safety, shall win customers' satisfaction and trust,and shall contribute to the sustainable development of society.
2. SUMCO shall produce legitimate profits, grow corporate value, proceed with timely andappropriate disclosure to the public, and aim at returns to its shareholders and investors.
3. SUMCO shall comply with law and regulations, international rules, and social norms, shall
implement risk management, and shall maintain business continuity.
4. SUMCO shall choose its suppliers by fair and rational standards, establish mutual
confidence, and prosper together.
5. SUMCO shall manage environmental activities, make use of resources and energy efficiently,
and control emission.
6. SUMCO shall maintain safe, healthy, comfortable and appropriate workplaces for everybody
working in SUMCO, shall have a high regard for human rights, ability and personality, andshall realize fair and diverse ways of working.
7. SUMCO shall respect various cultures and histories, and shall interact with society and local
communities.
Based on the belief in valuing and respecting these multiple stakeholders, “ESG” refers to areas ofinvestor demands on corporations, while the “SDGs” set out goals and targets to be aimed for bysociety and the world, the objects of this belief, and ask corporations to contribute proactively totheir realization. Accordingly, engaging with ESG issues and the SDGs can be seen as leading to thepromotion of CSR and sustainability, which is aimed at contributing to multiple stakeholders.
3

SUMCO's Initiatives and Framework
SUMCO provides high-quality silicon wafer products of use in solving issues for the environment andsociety, while also conducting sustainability promotion activities that address issues for theenvironment, society, and corporate governance in our own business processes. In such ways weare devoting efforts to the SDGs in pursuit of global sustainable growth. Toward further acceleratingthese initiatives, in 2021 we launched the ESG/SDGs Council (renamed to “the Sustainability
Promotion Council” from 2023) and appointed an Executive Officer Responsible for ESG and SDGs
(renamed to “an Executive Officer Responsible for Sustainability Promotion” from 2023), a position I
have held since 2021.
Made up of members of Executive Officer level and above, the Sustainability Promotion Council
meets (twice a year in principle) for reporting and deliberation on activities related to sustainability
promotion in each division. It then reports a summary of the proceedings to the Board of Directors,
where lively discussions take place involving also the outside directors.
Structure of the Sustainability Promotion Council

Of the numerous sustainability promotion activities that are undertaken under this structure,
introduced here are initiatives on behalf of carbon neutrality and in the area of diversity andinclusion, with a special focus on gender equality.
4

Carbon neutrality: Decoupling economic growth from environmental
degradation
Carbon neutrality can be seen as a prime example of an issue to which contributions are being madeboth in our product provision and on the business process front.
One of the 169 targets included in the SDGs is endeavoring “to decouple economic growth fromenvironmental degradation.” As this implies, the SDGs are based on the philosophy of achieving both
solutions to issues for the environment and society and economic growth, of which carbon neutrality
is a representative undertaking. Today when CO2 emissions are seen as the greatest threat to theenvironment, we are asked not only to reduce the rate of emissions per unit (emission factor) but toreduce the absolute emission amounts, while maintaining economic growth. Having a major role inthe semiconductor industry with its ongoing growth, we are directly confronting this difficult
demand, resolving to go ahead with various initiatives toward carbon neutrality while carrying out
our business processes in a way that reduces other environmental impacts resulting from ourbusiness activities.
We will also contribute toward carbon neutrality on the business end by providing high-quality
semiconductor silicon wafers essential for power management in electric vehicles and renewableenergy, and for making data centers more energy efficient.

Diversity & Inclusion
The promotion of diversity & inclusion (hiring, training, and promoting the active involvement ofdiverse human talent) is essential to the Company’s growth and continued existence. To meet thedemands of leading-edge semiconductor manufacturers worldwide while continuing to grow, weneed to keep on hiring diverse, outstanding personnel and empower them to make full use of theirabilities. An important element of this, which is also a key goal of the SDGs, is gender equality; andhere we will step up our efforts to achieve this equality in the form of greater involvement of
women. Along with making the Company a better place for women to work in, we will create theopportunities and means for excellent people to shine regardless of gender, aiming for the continued
growth of employees and the Company.

5

Fulﬁlling our role
Even more than previous UN initiatives, the SDGs are a call to corporations and individuals tocontribute to the world by becoming more proactively and energetically involved in solving issues forthe environment and society. In our own role, including the supply chain, we will continue being oneof the “good corporate citizens” working to solve these issues. For my own part, I too intend to
devote a maximum eﬀort to this end, together with people inside and outside the Company.
Relationships with Stakeholders
SUMCO endeavors to fulﬁll its responsibilities to stakeholders, who support our business activities.

To ESG-oriented Investors

6

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
officially recognized by many semiconductor
manufacturers with excellent supplier awards.
In 2022, we received the Excellent PerformanceAward for the ninth consecutive year from
Taiwan Semiconductor Manufacturing Co., Ltd.

2022 Best in Value Award

Excellent Performance(TSMC), the world’s largest foundry. We also

from SamsungAward from TSMC

received the 2022 Best in Value Award from
Samsung, the world’s largest semiconductor memory manufacturer. Based on this strong
recognition, we will continue to promote collaboration with our customers based on long-term
commitment and mutual trust, and focus on further improving our technical capabilities.

2. Stable Profitability Even During Economic Downturns
The silicon wafer market is characterizedby major short-term changes in its

Net sales/Operating income/Net income
attributable to owners of the parent

business environment. The SUMCO Grouphas been working to achieve a revenue
structure that stable profitability evenduring 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.
7

3. Empower Employee Awareness of Proﬁt
The employees, rather than the chairman, president or executives,
are the main manufacturers and sellers of our silicon wafers. All
employees of the SUMCO Group share the SUMCO Vision, maintainan awareness of profit and cost, and work to identify and solve
issues. To cultivate this awareness among employees, CEO &Chairman of the Board and Vice Chairman visit each plant
frequently to hold management briefings in order to share themanagement issues facing the Group in the current businessBusiness conditions briefing(by Michiharu Takii, Vice Chairman)

environment change.
(In 2022, 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 "Stable
Profitability Even during Economic
Downturns." The SUMCO Group works toboost employee motivation by establishing avariety of award systems to appropriately
recognize and reward employees' efforts andachievements.
Moreover, with the aim of cultivating aworkplace in which all employees can work

Employees of SUMCO Phoenix Corporation

comfortably, SUMCO has been pursuing initiatives to help employees strike a balance between workand 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.

8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 (2022)

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

To ESG-oriented Investors

9

SUMCO CSR Policy
1. Supported by its cutting edge technology, SUMCO shall steadily provide products and service withexcellent quality, ability and safety, shall win customers' satisfaction and trust, and shallcontribute to the sustainable development of society.
2. SUMCO shall produce legitimate profits, grow corporate value, proceed with timely andappropriate disclosure to the public, and aim at returns to its shareholders and investors.
3. SUMCO shall comply with law 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, andprosper together.
5. SUMCO shall manage environmental activities, make use of resources and energy efficiently, andcontrol emission.
6. SUMCO shall maintain safe, healthy, comfortable and appropriate workplaces for everybody
working in SUMCO, shall have a high regard for human rights, ability and personality, and shallrealize fair and diverse ways of working.
7. SUMCO shall respect various cultures and histories, and shall interact with society and local
communities.

To ESG-oriented Investors

10

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. SUMCO engages in ESG activities to achieve the materiality targets.

The Materiality Identification Process

11

SUMCO

2World's Best in Technology
Stable Profitability Even
During Economic Downturns

Empower Employee

Awareness of Profit
Competitiveness inOverseas Markets

12

SUMCO Materiality

Environmental (E)Materiality

Social (S)Material Issue

energyCombatting global consumption
warming
intensity
Carbon neutrality
E

Reasons for Identification

ThemesReduction of

Resource

Eﬀective

conservation

utilization ofactivities

water resources

Governance (G)Reducing the environmental impact in our business activities is a
corporate responsibility for the future.
To ensure that our irreplaceable global environment is passed on to
the next generation, the SUMCO Group has developed anenvironmental management 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 ofwater resources and the reduction of waste and emissions.

Contributing to
the creation of a

Waste

recycling-oriented

management

society

Prevention ofoccupational
accidents
Health, hygiene

To enhance our initiatives preventing global warming, we have added
new targets aimed at achieving carbon neutrality.

Under the principle that "the safety and health of employees take thehighest priority over all," the SUMCO Group is committed to "creatinga safe and pleasant workplace environment supporting good mental
and physical health" through active communication in which allparties 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 freefrom occupational accidents, and with regard to health management,
activities are focused on the three issues of mental health, smoking
cessation and lifestyle habits.

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

Enhancement ofdevelopmenttraining

continue to invest in human resources and make enhancements toour career development program.
We will enhance training opportunities with a multi-faceted approachthat covers everyone from new employees to managers and oﬃcers.

13Materiality

Material Issue

Reasons for Identification

ThemesRaising thePromotion ofpercentage ofwomen’s active

women inparticipation

management
positions

We have set new medium-term targets for percentage of women in
management positions to increase diversity boost women's active
participation.
We will enhance our initiatives to create a more favorable working
environment for women.

The source of enhanced corporate value is R&D and technologicalcapabilities that support customer value creation through ourContributions as adevelopment
partner"invisible assets," and as a development partner to customers,
SUMCO enjoys a high global market share in cutting-edge products.
Moreover, we will contribute to the achievement of the SDGs, which
are social issues affecting the entire world, by supporting advancesin semiconductors.

R&D andtechnologicalcapabilities

To continually maintain our "first call" status as a company, we value
close communication with customers.

supporting
customer value
creation

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

satisfactionneeds while continuing with performance checks and follow-ups, webuild robust relationships of trust.
We analyze the information customers provide through QCDS
(quality, cost, delivery and service) evaluations, share the insights
with management and relevant departments, direct what we havelearned into improvement activities and strive to improve customer
satisfaction levels.

We believe it is important to share CSR-related societal demands
Promoting ﬁrm

with our suppliers and jointly tackle issues in the supply chain such

establishment ofas human rights, labor, safety, the environment and ethics.

the CSR
Procurement

We share the SUMCO CSR Procurement Policy with suppliers throughPolicybrieﬁng sessions, audits and other activities, and promoteresponsible 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.

14

Materiality

Material Issue

Reasons for Identification

ThemesWe fully recognize that the timely and appropriate disclosure ofcorporate information to investors forms the basis of a sound stock
market and have adopted the basic policy of continually ensuring theCommunication
Swith shareholders
and investors

prompt, accurate and fair disclosure of corporate information from
Enhancement of

the perspective of investors.

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

The silicon wafer business is a critical industry supporting an ITbased society, and the SUMCO Group is responsible for ensuring thestable supply 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 in an emergency through periodic training.

G
Ensuring compliance with laws, regulations and social norms to beobserved forms the basis for SUMCO fulﬁlling its social
Ongoing
Promotingenhancement ofcompliancecomplianceawareness

responsibilities and is also essential for the sustainable growth ofcorporate value.
Training on topics including the SUMCO Charter of Corporate
Conduct, which prescribes the norms to be observed by employees,
is conducted regularly for all employees as part of ongoing eﬀorts tostrengthen awareness of compliance.

15

SUMCO Materiality Targets

Materiality

Material Issue

Targets

ThemesReduction ofenergyconsumption

Combatting global intensity*1
warming

Carbon neutrality

By 2030, reduce energy consumption rate by 14.9% compared with2014 levels (average reduction of 1% every year)

By 2030, reduce CO2 emissions (Scope 1+2) by 33% compared with2014 levels (2.5% annual reduction); and by 2050, reduce by 100%(carbon neutrality)

E
Resource
conservation
activities

Effective
utilization ofwater resources

By 2030, reduce water consumption rate by 10% co mpared with2020 levels (average reduction of 1% every year)
High and stable water recycling rate

Contributing to
the creation of a

Waste

Conversion of waste into valuable resources and improved recycling

recycling-oriented

managementrate

society
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
development
S
Promotion of
women’s active
participation

Enhancement of

Increasing training time compared with the previous year by utilizing

training

web-based training

Raising thepercentage ofwomen inmanagement(SUMCO*2) the end of December 2021: 1%→2030: 10%(Group) the end of December 2021: 6.5%→2030: 12%

positions
R&D andtechnologicalcapabilities
supporting
customer value
creationContributions as adevelopment

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

partner
Increasing
customersatisfaction

Maintaining high evaluation with the leading customer satisfaction
score

16

Materiality

Material Issue

Targets

ThemesPromoting firm
establishment of

Promoting CSR
procurement andmitigating
S

procurement risks

the CSR
Procurement
PolicyStrengthening
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 andimplementing supplier safety training

Maintaining the number of IR activities for investors

Implementing BCP training

Ongoing
Promotingenhancement ofcompliancecompliance

Implementing compliance education

awareness

SUMCO Materiality Initiatives and Achievements in 2022
In pursuit of medium- to long- term targets, SUMCO works on continuous improvement.
Our initiatives and achievements in 2022 are as outlined below.

Materiality

Material Issue

Initiatives and Achievements in 2022

ThemesReduction ofenergyCombatting global
warming

consumption
intensity*1
Carbon neutrality

E

Resource
conservation
activities

Contributing to
the creation of arecyclingoriented society

A 15.4% reduction (from 2014 levels) was achieved in fiscal 2022,
exceeding the 7.7% target for that year.

A 32.4% reduction (from 2014 levels) was achieved in fiscal 2022,
exceeding the 18.3% target for that year.

Effective

A water recycling rate of 36.6% was achieved, down slightly fromutilization of

the level in previous years due to the impact of investment inwater resources

production increases and other factors.

Waste

An industrial waste recycling rate of 82.9% was achieved, up frommanagement

the 77.2% rate in the previous year.

17Materiality

Material Issue
Prevention of

Although we carried out regular safety education and training,

occupational

working to raise safety awareness, the lost work day accident

accidents

frequency rate was 0.35 compared to the target of 0.2.

We won recognition as one of the “White 500” as a healthy

Health, hygiene
and safety
initiatives

Initiatives and Achievements in 2022

Themes

Maintenance of
health andproductivity
management

enterprise for the fifth consecutive year, and for the second timeearned recognition also in the Health & Productivity Stock Selection
program.
Aware that the good health of employees is a key management
resource, we took initiatives toward maintaining and promoting
health and improving the working environment.
Time devoted to training in 2022 rose by around 1,000 hours, or

Human resources

Enhancement of

4.6%, from the previous year.

developmenttraining

We sought to make training more effective, with online training as
the norm.

Raising thePromotion ofpercentage ofwomen’s active

women inparticipation

management
positions

In 2022, we achieved a 2.1% increase in SUMCO*2 and 7.0%
increase on a consolidated base.
Besides enhancing diverse working arrangements that support
women’s active participation, we actively promoted mid-career hiringof women.
We continued to boast a worldwide share of over 50% in wafers forS

R&D andtechnologicalContributions as aleading-edge logic chips.

development

We maintained our top supplier position, winning customer

partnerrecognition as a development partner for our high technology
development capability and consistent quality.

capabilities
supporting
customer value
creation

We again achieved an overall average rating of 85 points or higher
Increasing(100 point scale) in supplier evaluations by customers.

customer

By sharing the supplier evaluations throughout the Group andsatisfaction

reflecting them in improvement activities in each division, we wonhigh ratings from customers in quality and technology.

Promoting firm

Promoting CSR
procurement andmitigatingprocurement risks

establishment of

We explained our CSR Procurement Policy in briefing sessions for

the CSRsuppliers, and worked to further instill the policy. CSR audits ofProcurement

suppliers were conducted remotely.

PolicyStrengthening
BCP in materials
procurement

We sought to diversify our procurement sources as a hedge against
the risk of disasters and accidents.
We held a total of seven supplier safety education sessions, for eachof the plants.
In the midst of the pandemic, we continued our work-from-homeCommunication
with shareholders
and investors

Enhancement of
IR activities

policy. However, we were able to hold nearly the same number of IR
events for shareholders and investors in and outside Japan as before
the pandemic, relying on web conferences and telephone
conferences.

18

Materiality

Material Issue

Initiatives and Achievements in 2022

ThemesAgain in 2022, we worked on further developing BCP based on theﬁndings in the previous year by the Business Security Committee
Enhancing risk

Initiatives to(BSC). We also held drills to prepare for the loss of headquarter

management

develop BCP

functions in the event of an earthquake directly under Tokyo, as wellas conducting comprehensive disaster prevention drills and BCP drills

Gat each plant to prepare for accidents.
Ongoing
Promotingenhancement ofcompliancecomplianceawareness

Again in 2022, we conducted training for all employees on the
SUMCO Charter of Corporate Conduct, by e-learning and othermeans.

*1 Calculations are those made using the “Tool for preparation of periodic reports under the Act on
the Rational Use of Energy,” issued June 29, 2021 by the Energy Efficiency Division, Energy
Efficiency and Renewable Energy Department, the METI Agency for Natural Resources andEnergy.
*2 Total figures include the number of Sumco employees assigned to other companies and exclude
secondees to Sumco Corporation from other companies

To ESG-oriented Investors

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19

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

20

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, digital appliances,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 androbotsContributing 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 power21

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
Developing and utilizing diverse human resources
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
Activities with Non-Profit Organizations, etc.
Participation in emergency drills at welfare institutions

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

22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

In order to view PDF files, you must have the Adobe® Reader™ plug-inoffered free of charge from Adobe Systems, Inc.

23

GovernanceCorporate Governance …………………………… ��Compliance ………………………………………… ��
Risk Management ………………………………… ��
SUMCO Group Taxation Policies ………………… ��
SUMCO DX Policy…………………………………… ��

24

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 mediumto-long-term, while building and maintaining positive relationships with other stakeholders.
Based on this recognition, SUMCO pursues a range of measures related to corporate
governance, such as 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 andto ensure transparency 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 Structure25

Board of Directors
SUMCO's Board of Directors comprises internal Directors with a proven record of performance intheir respective areas of responsibility and outstanding management abilities, along with Outside
Directors with expert knowledge and extensive experience, based on the basic stance of SUMCO toensure an overall balance and diversity in knowledge, experience and capabilities of the Directors.
The Board of Directors comprises five Directors (excluding 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 2022, 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 (excluding Directors who are Members of the Audit & Supervisory
Committee) and the amount of compensation for individuals.

26

Directors

Skills (expertise, experience, capability, etc.)
possessed by each Director

Position intheCompany

Name

Director*1
Chairmanof theBoard

Legal
Affairs/
Compliance

Sales/
MarketingInternationality/
Globality

Technology/
Manufacturing/
IT

Human
Resources
Management/
Human
Resources
Development

●

●

●

Corporate
Management

Finance/
Accounting

Mayuki
Hashimoto●●Director*1

Michiharu
Takii

●

●

Director*1

Toshihiro
Awa

●

●

●

Director*1

Jiro
Ryuta

●

●

●

Director*2

Akane
Kato

●

Director
Full-time
Fumio
Audit andSupervisory Inoue
Committee
member

●

●

●
●
●

●

●

Director*2
Audit and
HitoshiSupervisory Tanaka
Committee
member●●●Director*2
Audit andMasahiroSupervisory Mitomi
Committee
member●Director*2
Audit and
Shinichiro
Supervisory Ota
Committee
member●●●●Director*2
Audit andMasahikoSupervisory Sue
Committee
member

●

●

●

●

●

●

*1 Representative Director*2 Independent Outside Director

27

●

●

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 expert knowledge andexperiences in data science, etc., cultivated through experience in the public sector and educationﬁelds.
Each Outside Director satisﬁes SUMCO's "Criteria of Independence" established in accordance with
Tokyo Stock Exchange standards on the independence of Independent Directors, and has been
veriﬁed to be 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 SUMCO and senior management and others.

Audit and Supervisory Committee
SUMCO'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 andSupervisory Committee Members. In addition, it is SUMCO's basic policy to take steps to ensure thatat least 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, SUMCO 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.
28

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 three Independent Outside Directors (Directors Hitoshi Tanaka, Masahiro
Mitomi and Shinichiro Ota) to serve as a discretionary advisory body for the Board of Directors. The
Nomination and Compensation Committee receives requests from the Board of Directors for advice
on the process for selection of candidate Directors and Executive Officers of SUMCO, their
qualifications, the reasons for their designation, the structure of remuneration for Directors(excluding Directors who are Audit and Supervisory Committee Members) and Executive Officers,
and related matters. The committee deliberates on the appropriateness and other aspects of thematter referred, including the perspectives of gender and other diversity as well as expert
knowledge and experience, and, also taking evaluations of SUMCO’s performance into account,delivers its advice. The Board of Directors, receiving the findings of the Nomination andCompensation Committee, designates candidate Directors and Executive Officers, and decides on the
remuneration and other payments for Directors (excluding Directors who are Audit and Supervisory
Committee Members).
The Nomination and Compensation Committee convened two times in fiscal year 2022, 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)

29

Board of Directors/Audit & Supervisory Committee Meetings in Fiscal
Year 2022
Board of Directors
Name
Mayuki

Audit & Supervisory Committee

Times Attended/
Times Held

Attendance

Name
Fumio Inoue

16/16

100%

Michiharu Takii

16/16

100%

Tanaka(*1)

Toshihiro Awa

13/13

100%

Masahiro

Jiro Ryuta

13/13

100%

Mitomi(*1)

Akane Kato(*1)

16/16

100%

Fumio Inoue

16/16

100%

16/16

100%

Hashimoto

HitoshiTanaka(*1)
Masahiro
Mitomi(*1)
Shinichiro
Ota(*1)MasahikoSue(*1)
HisashiFuruya(*2)
Kazuo
Hiramoto(*2)
Akio Fuwa(*1)(*2)

Hitoshi

Shinichiro
Ota(*1)MasahikoSue(*1)
Akio Fuwa(*1)

16/16

100%

16/16

100%

13/13

100%

3/3

100%

3/3

100%

3/3

100%

(*2)

(*1) Independent Outside Director(*2) Retired from the position of Director as of March 29, 2022

30

Times Attended/
Times Held

Attendance

13/13

100%

13/13

100%

13/13

100%

13/13

100%

10/10

100%

3/3

100%

Executive Remuneration

Matters regarding policy regarding amounts of remuneration and otherpayments to oﬃcers and determination of calculation method
Details of the Remuneration Policy
SUMCO’s basic policy for Executive Director remuneration aims to align the interests and risks of
Executive Directors and shareholders and provide an incentive to improve business performance andmedium- to long-term corporate value. To this end, Executive Director remuneration comprises basic
remuneration, performance-linked monetary remuneration based on short-term performance, andperformance-linked stock remuneration based on medium- to long-term corporate value, dependingon each Executive Director’s office and rank, within the total amount determined by resolution of theGeneral Meeting of Shareholders. Outside Directors and Directors who are Audit and Supervisory
Committee Members receive only the fixed portion of basic remuneration from the perspective ofensuring the appropriate conduct of their duties such as auditing and the supervision of theexecution of business operations. The remuneration of Directors who are Audit and Supervisory
Committee Members is determined through deliberations of the Audit and Supervisory Committee
Members within the total amount determined by resolution of the General Meeting of Shareholders,
and takes into account the role and duties of each such Director and whether he or she is a full-timeor part-time member.
Pursuant to the resolution at the 17th Ordinary General Meeting of Shareholders held on March 29,
2016, the upper limit of the total remuneration for all Directors (excluding Directors who are Audit
and Supervisory Committee Members) is 460 million yen annually (including 50 million yen per year
as basic remuneration for Outside Directors consisting only of fixed remuneration; excluding
employee salary), and the upper limit of the total remuneration for all Directors who are Audit andSupervisory Committee Members is 110 million yen annually. Pursuant to the resolution at the 24th
Ordinary General Meeting of Shareholders held on March 29, 2023, a performance-linked stock
remuneration plan was introduced for Executive Directors of SUMCO. This stock remuneration plan
includes malus system and clawback system.
The proportion of fixed remuneration (the portion of basic remuneration that is not reduced by
performance) to total remuneration for Executive Directors is expected to be approximately 20% to30%, depending on office and rank, when the result for FY 2022 are applied.
The following is a summary of each remuneration system.

31

1. Basic remuneration (monetary remuneration)
The basic remuneration of Directors is in principle a ﬁxed cash amount paid each month based on
the Directorʼs oﬃce and rank. However, if a net loss attributable to owners of the parent isrecorded, the basic remuneration of Executive Directors will be reduced gradually, depending on
the amount of loss, to the amount of ﬁxed remuneration set by their oﬃce and rank.
2. Performance-linked remuneration (monetary remuneration)
For Executive Directors, the Company has judged that it is appropriate to use the semi-annual net
income attributable to owners of the parent as an index for remuneration. Executive Directors will
be paid performance-linked monetary remuneration each year calculated by a formula andmultiplied by a coeﬃcient based on oﬃce and rank. However, if the net income attributable toowners of the parent or other indicators of performance do not meet the standard set by the
Board of Directors, the performance-linked monetary remuneration will not be paid.
3. Performance-linked stock remuneration
Under the Companyʼs performance-linked stock remuneration plan, a trust set up by theCompany through money contributions will acquire shares of the Company, and the number ofshares of the Company corresponding to the number of points granted to each Executive Director
by the Company will be distributed to each Executive Director through the trust.
The following is a summary of the plan.

a.

Persons eligible for stock remuneration

Executive Directors
From the ﬁscal year ending December 31, 2023,b.

Target period

to the ﬁscal year ending December 31, 2025
(May be extended for a period of up to three years by
resolution of the Board of Directors)

Maximum amount of money that theCompany will contribute as funds for thec.

acquisition of shares of the Company

Total of 675 million yen

necessary for distribution to persons(In case of extension, up to 225 million yen per year.)

eligible for the plan in a. during the target
period in b.
Through the disposal of the Companyʼs treasury shares ord.

Method of acquiring shares of the Company

through the exchange market(including oﬀ-auction trading)e.

Maximum number of points granted topersons eligible for the plan in a.

210,000 points per ﬁscal year32

Points are granted based on position, degree ofachievement of performance targets, etc. The performancetargets include ROE, EBITDA margin, and carbon dioxidef.

Criteria for granting points

emissions.
No points will be granted if net income attributable toowners of the parent and similar indicators do not meet thestandard set by the Board of Directors.

Time of distribution of shares of theg.

Company to persons eligible for the plan in

In principle, when the Company’s Directors retire

a.
h.
i.

Voting rights pertaining to shares of theCompany in trust

Not to be exercised

Dividends from shares of the Company in

To be used for the acquisition of shares, payment of trust fees,

trust

etc.

We have introduced a similar stock-based compensation plan for the Presidents of our majordomestic subsidiaries and for Executive Officers and other management-level employees of theCompany.
For details of the Company’s performance-linked stock remuneration plan, please refer to the press
release below.
Announcement regarding Introduction of Performance-Based Stock Compensation Plan for Directors

33

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 three
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 (excluding Directors who are Audit and Supervisory Committee Members) and Executive
Officers, 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 andCompensation Committee, the Board of Directors determines remuneration and other payments to
Directors (excluding Directors who are Audit and Supervisory Committee Members).
In fiscal year 2022, 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, 2022 resolved on the policy and determination method of remuneration and otherpayments to Directors (excluding Directors who are Audit and Supervisory Committee Members),
and the Board of Directors meetings held on June 30 and December 27 approved the individual
amounts taking into consideration the semi-annual business results.

34

Amount of remuneration in the recent ﬁscal year (disclosure by oﬃcer
category)
Remuneration for Directors for ﬁscal year 2022
Total amount of remuneration and other payments by typeOﬃcer categoryofoﬃcersTotal amount of(thousands of yen)

Number<FixedBasicremuneration within

remuneration

basic
remuneration>

remuneration andother payments

Performance-(thousands oflinkedyen)

remuneration

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

7

216,516<117,700>

139,522

356,038(1)(10,500)<(10,500)>(-)(10,500)(of which, Outside
Directors)
Directors who are Audit
and Supervisory
Committee Members(of which, Outside

675,504<75,504>-

75,504(5)(42,000)<(42,000)>(-)(42,000)

13

292,020<193,204>

139,522431,542(6)(52,500)<(52,500)>(-)(52,500)

Directors)
Total(of which, Outside
Directors)(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 2022, there were five (5) Directors (excluding Directors who are Audit
and Supervisory Committee Members) and five (5) Directors who are Audit and Supervisory
Committee Members.
4. In case of net loss attributable to owners of the parent, basic remuneration of Executive Directors
will be reduced gradually, depending on the amount of loss, to the amount of fixed remuneration
set by their office and rank.

To ESG-oriented Investors

35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.

36

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, prohibition of comprehensive anticorruption measures such as prohibiting any illegal or improper provision of beneﬁts to andacceptance of beneﬁts from public servants and any party who has business relationships, 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 and others; (3) ﬁnancial beneﬁts in connection
with the exercise of shareholders' rights; (4) providing or accepting excessive entertainment, gifts orother such beneﬁts that exceed commonly accepted bounds in society to or from customers,
suppliers and potential business partners, and the receiving personal beneﬁts; and any unlawful
beneﬁts as well as the entire range of actions that are recognized as wrongful or improper in light ofwhat is commonly accepted in society. The Regulations also deﬁne standards for making donations,providing sponsorship, paying entertainment expenses, giving celebratory or condolence gifts,
paying membership dues to external organizations, and outsourcing operations and ensure theimplementation of them under an appropriate approval process. SUMCO also requires employees toavoid these behaviors when engaging 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
fair business 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.

37

Internal Reporting System
SUMCO has established Internal Reporting Regulations and introduced an internal reporting hotline
for reporting any act in violation of the SUMCO Charter of Corporate Conduct, including conduct inviolation of laws and ordinances, human rights infringements and harassment, comprehensive
corruptive act such as bribery and unfair competition, and improper transactions. SUMCO accepts
internal reports from our suppliers as well as employees.
To ensure that whistle-blowers can make reports with peace of mind, we have set up an in-houseand external (attorney) contact points for internal reports as well as a “suggestion box” that goesstraight to top management. Anonymous reports are accepted and all disadvantageous treatment
including retaliation against whistle-blowers who make reports is strictly forbidden.
Information on how to use the hotline and about contact points for consultation are posted at all
times on the premises of the SUMCO Group, the corporate intranet and our dedicated procurement
website, and these matters are also explained to be known for all employees during training on the
SUMCO Charter of Corporate Conduct which is conducted regularly for all employees.

Export Control
To ensure thorough export control aimed at maintaining international peace and security, SUMCO
has clearly laid out compliance with export control rules in the SUMCO Charter of Corporate Conduct.
The Company has established an appropriate export control system in accordance with the Security
Export Control Rules where it ensures that exports are only executed after the reviews 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.

38

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, which is explicitly stated in the SUMCO Charter of Corporate Conduct. Basedon this policy, we have set forth rules on how we obtain, maintain, utilize intellectual property andprevent infringements as well as respecting the intellectual property rights of third parties in theIntellectual Property Regulations, and provide regular education on intellectual property matters to
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 reasonablelevel.

Inventor commendation

39

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 such as prohibiting any illegal or improper
provision of benefits to and acceptance of benefits, etc. 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 theconfidential information and intellectual property rights of others.
Protecting the environment
The Charter also sets forth provisions on how SUMCO should comply with environmental
laws and ordinances while making every effort to reduce waste and pollutants, and also
requires employees to understand this policy and act with an awareness of environmental
conservation 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
40

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
and minimizing damages when a risk is realized.

Risk Management Basic Policy

SUMCO has set forth basic matters pertaining to risk management in the Basic Rules on Risk
Management, under which we undertake risk management activities.
Our basic approach to responding to risks involves the following two points.
1. Prioritize the handling of risks by likelihood of occurrence and severity of impact from theviewpoints of ensuring optimum allocation of management resources and theeffectiveness of 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.

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 each risk in accordance with the Basic Rules on Risk Management mentioned above.
Risks which pose a major threat to business continuity are defined in the Basic Rules on Risk
Management.
When taking on a new business as well, we use a same process to analyze business risk and assign
priority.
41

Major Risks Recognized in the Basic Rules on Risk Management

1. Risks Related to General Management
Examples: Contractual disputes, investment in new businesses, geopolitical risks
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, massive shortage of operators due to pandemics or other factors, missioncritical systems failure
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, employee’s health issues due to outbreak of infectious
disease or other factors
11. Risks Related to the Environment
Examples: Pollution, environmental accidents
12. Risks Related to Credit
Example: Bankruptcy of a customer42

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 establishedin (1) above, and the policy on risk countermeasures is determined via discussion within acompany-wide committee known as the BSC (Business Security Committee). The BSC meets every
year, with not only the Chairman & CEO and other senior management in attendance, but also
responsible members of each department, factory, plant and group companies worldwide. It
decides company-wide policy regarding risk management, deliberates and determines risk
prevention measures, discusses responses on cross-department risks and new risk phenomenonand exchanges a broad range of information about risk management in general.
BSC's Structure and Objectives43

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

Ensuring Business Continuity
Our Basic Rules on Risk Management define business continuity as an important management
issue, and we have been working to develop and improve our BCP (business continuity plan) toensure business 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, anddetermines policies on future action to be taken. Each department and group company improves
the BCP further according to the policies.
In 2022, we conﬁrmed procedures to transfer head oﬃce operations elsewhere, theimplementation status of drills and exercises carried out by each department and issues to beaddressed in the future based on the assumption of a large-scale earthquake beneath the Tokyo
metropolitan area which leads the disfunction of Tokyo Head Oﬃce. These eﬀorts were part ofactivities to further enhance the BCP readiness of the head oﬃce.
We also conduct integrated emergency response drills at each plant, which include activities suchas evacuation, ﬁreﬁghting, reporting, rescue, emergency relief and transportation in the event of adisaster such as an earthquake. In addition to those drills above, we also conduct regular BCP
training to conﬁrm procedures and the contents of the BCP and enhance our response capabilities.
Continuous improvements are made by reviewing the training results, identifying issues, andrevising procedures and other contents after conducting the drills. Furthermore, at each site, we
are implementing measures to minimize damage and ensure swift recovery in the event of adisaster such as an earthquake. This includes facility improvements such as installing earthquakeresistant measures seismic reinforcement and stockpiling necessary tools, materials andequipment to promptly resume production.

44

Integrated Emergency Response Drill

Integrated Emergency Response Drill

BCP training at Miyazaki Plant of SUMCO TECHXIV
Corporation

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 alarge-scale earthquake or other disaster/accident. The manual sets out items concerning the
preparation of stockpiles for disaster prevention, the initial response to be taken at each site aftera 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 thehandling of ﬁre extinguishers and ﬁre hydrants, and training on the employment of lifesaving
measures such as CPR and AED usage, in order to reduce damage in the event of a disaster. We
also conduct exercises such as carrying drills using cloth stretchers to simulate an evacuation by
stairs to further enhance employees' ability to respond in an emergency.
Additionally, at our Kyushu Factory we periodically conduct joint response drills with suppliers thatdeliver chemicals to our sites so that all involved can take safe and smooth action in the event of aleakage of chemicals during delivery.
45

First Aid Drill

Lifesaving Training

Information Management
The Company understands the importance of information in business operations and clearlystipulates the appropriate use and management of our trade secrets and all other information
including confidential information received from others 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 to appropriately manage andprevent leaks of our trade secrets and confidential information received from customers, suppliers
and other parties by conducting regular training for all employees on these information
management rules and information security.
In an effort to prevent computer system-related leaks and stop information from leaking outside
the Company, the Company also implements a range of measures, under the supervision of theGeneral Manager of AI Promotion Division who is responsible for information security, to address
various risks, such as external attacks on our computer systems via the internet, the unauthorized
use of computer systems and viruses that target computer systems. Regarding security incidents,
we have established a Computer Security Incident Response Team (CSIRT) and implemented asystem to ensure appropriate response, including the establishment of countermeasure manual.
Additionally, SUMCO has established the Rules on Personal Information Management inaccordance with the Act on the Protection of Personal Information to ensure that personal
information is managed appropriately.

Safety Conﬁrmation System
The SUMCO Group has introduced a "Safety Conﬁrmation System" which enables quick
conformation of the safety status of employees working in Japan. We think the system also helps
speed up post-disaster recovery eﬀorts.
46

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 isdamaged by a large-scale disaster such as a major earthquake.
We conduct regular drills on switching to backup servers to confirm our switchover procedures
and other details.

Voice
Katsuhito 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 ofparticipation in 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 comprisedof 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, searchingfor missing people, conducting rescue and relief activities, providing emergency medical careand 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 partin 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 a major 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 their perspective as professionals. Moving forward, we will share these areas
for improvement with employees through internal meetings, continue to coordinate with thelocal community with the 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
47

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 andbeing good neighbors in communities, SUMCO Group shall conduct its business activities faithfullyin accordance 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 ineach country, 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 andother international initiatives are important undertakings for achieving tax transparency andpreventing 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 theircontribution.
48

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 ofstructures without commercial substance, the transfer of value created to low tax jurisdictions, orthe use of tax havens.

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.

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

Taiwan49

Income Taxes Paid
2020

Japan
TaiwanUS and others
Total

2021

2022

IncomeIncomeIncomeTaxes Paid Number of Taxes Paid Number of Taxes Paid Number of(Billions of Employee (Billions of Employee (Billions of Employee
Yen)
Yen)
Yen)
5.4
5,885
4.6
6,095
7.0
6,710
0.4
1,364
1.1
1,427
1.4
1,523
0.2
950
0.2
947
0.4
956
5.9
8,199
5.9
8,469
8.8
9,189

To ESG-oriented Investors

50

Steady Progress in Digital Transformation(DX)
SUMCO established the AI Promotion Division in 2018. Today we are successfully applying AI
technologies to manufacturing activities in system infrastructure areas including production control
and process control. For each stage of the production processes, for example, we are collecting
quality information and process information as Big Data, and associating and analyzing thisinformation toward both greater productivity and higher quality, as we build the capability for realtime prediction. In addition, we are seeking to raise our competitiveness in commodity areas having
the biggest demand, establishing a firm profit base.
Our aim is to be the top company in the area of digital transformation (DX).

Main aims of our digital transformation
We are working to achieve real-time monitoring and automation of production processes and toestablish a production capability and production plans capable of flexibly meeting market demand
fluctuations. We are also seeking to increase the agility of the organization by expanding the areas
where AI is employed. By realizing rapid data analysis in the technology fields of our leading-edge
products, and speeding up the time from development to mass production, we are further boosting
our competitive advantage.

51

DX Promotion Strategy
More eﬃcient manufacturing and development through digital transformation (DX)We are promoting DX based on the know-how and vast data assets we have accumulated over many
years of business activities.

By introducing these technologies, we are seeking to improve productivity and quality, and toachieve stable operation, in such ways further boosting our competitive advantage. Toward
becoming a more agile company, we will further promote digital transformation by introducing AI
technology, enabling us to adapt quickly to changes in the market environment.

52

Successes and extent of achievement to date
Improving productivity at plants based on AI technology, data science, and IoTtechnologies
One of the chief objectives in pursuing DX at SUMCO is to raise the productivity of our plants,
enabling us to meet the voracious demand for semiconductors.
The Production Division and AI Promotion Division worked closely together to tackle productivity
issues, achieving an improvement of more than 10% in total wafers produced at our main 300 mm
wafer plant, where there was no leeway for adding new equipment.
This much improvement is equivalent to more than 30 billion yen saved in capital expenditures andmore than 4 billion yen in additional annual profit.
It was achieved by taking measures like the following.

• Devised the means for real-time acquisition and visualization of operation status andprocessing eﬃciency for all equipment in the plant.
• Made a detailed quantitative assessment of production line balance and bottlenecks, andimplemented an array of measures focused on raising processing eﬃciency.
• By means of per-second time chart analysis, reduced operation variability across equipment toan absolute minimum.
• Eliminated logistics waste based on a detailed analysis of actual conveyance data inside theplant.
• Employed machine learning to automate specialized decision-making that had relied on theexpertise of engineers, reducing process stoppage time.
Further, through such steps as linking automated guided vehicles (AGV) and collaborative robots(co-bots) with production equipment, we are actively taking on the challenge of transforming
existing plants into smart factories, as we continue with eﬀorts to raise labor productivity andcreate a better working environment for employees.
Deploying DX tools to promote operation eﬃciency
DX tools is the general term used at SUMCO for tools that support operation eﬃciency, including BI
tools,※1 RPA,※2and workﬂow systems.※3and workﬂow systems.
The results so far are work savings of more than 100,000 hours a year, and reduction in paper use
by more than 150,000 sheets a year.
By continuing to introduce DX tools of various kinds and making them a regular part of operations,
we will seek to improve product quality along with work eﬃciency.

53

Adapting ﬂexibly to diﬀerent work styles in the “new normal” era
Even before the pandemic, we had introduced a secure remote work system from the standpoint of
BCP (business continuity planning). Taking advantage of this system, we switched to a fullteleworking arrangement in the Tokyo region from the beginning of April 2020, ahead of the ﬁrst
state of emergency declaration.
Meetings to discuss management decisions were also changed to remote ones, and management
has continued to be carried out seamlessly making use of the electronic approval system already inplace.
While adapting to work styles for a new era, we will continue implementing measures aimed atachieving a high level of diversity.
※1 BI tools（BI＝Business Intelligence）
Tools used to collect and analyze various data in support of on-site and management decision
making.
※2 RPA（RPA＝Robotic Process Automation）
Technology for automating computer-based processes and tasks to replace human labor.
※3 Workflow system
A system that computerizes various requests in an organization to make the checking andapprovals process more efficient.

To ESG-oriented Investors

54

Environmental
Environmental Management ………………………… ��
Environmental Load of Business Activities ………… ��
Combating Global Warming …………………………… ��
Reduction of Waste……………………………………… ��Eﬀective Use of Water Resources……………………… ��
Chemical Substance Management …………………… ��
Initiatives for Biodiversity Activities ………………… ��Disclosure Based on TCFD Recommendations …… ��

55

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, theSUMCO Group has established an environmental management system. We have obtained
ISO14001 certiﬁcation for all of our plants, and pursue initiatives aimed at protecting theenvironment.

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 otheragreed 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.

56

May 1, 2021

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

57

Tackling climate change (Goals for Carbon Neutral)
Tackling climate change is one of the goals in SDGs, and delinking of economic growth andenvironmental degradation is strongly required.
The SUMCO Group, which supports the growing semiconductor industry, set goals for carbon neutral
covering Scope 1+2 in September 2021 toward the realization of a sustainable society.
Target2030 (Mid-term Goal)

Year

2050 (Long-term Goal)

33% reduction from 2014
Goals

100% reduction (Carbon Neutral)(2.5% reduction per year)[in conformity to 2℃ scenario of[in conformity to the declaration aiming carbon neutral by 2050 by
the Government of Japan]

SBT (※1)]

Continuous energy-conservation activities
Initiatives

Further introduction of more renewable energy (such as Solar power generation, etc.)
Procurement of non-fossil electricity (such as J-Credit and Non-Fossil Certificates), etc.

(※1) Science Based Targets
Reduction targets of greenhouse gas emissions set by companies that comply with the standardsof the Paris Agreement.

Unit energy usage goal
In addition to the goals targeting carbon neutral, we set an unit energy usage goal in 2019.The CO2
emissions related to the unit consumption calculation are the actual emissions of Scope1+2 (nocarbon offset) and we shall strive to reduce CO2 emissions by reducing energy consumption andimproving energy efficiency in our corporate activities.
Target Year
Goal
Initiatives

2030
14.9% reduction from 2014 (1.0% reduction per year)(CO2 emission in 2014 : 821,000 tons-CO2）
Continuous energy-conservation activities

58

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 at each site to reduce environmental load in accordance withthese objectives, such as reducing CO2 emissions, chemical substances used, industrial waste
generated, and water used. The accomplishments are reported and reviewed semiannually in theEnvironmental Management Committee and the targets are revised as needed. The standard values
are based on the results of the previous year.
2022-2025 Environmental Objectives and 2022 Results

BM*1
Reduction of CO2 emissions

Scope1+2

Reduction of chemical substanceuse

Previous

Reduction of industrial waste

results(reduction of hazardous waste*2
released)
Reduction of water consumption

2022

2023

2024

2025

Objectives

Results

Objectives

Objectives

Objectives

0.5%

0.6%

0.4%

0.4%

0.4%

0.9%

1.1%

0.7%

0.7%

0.7%

1.2%

1.4%

0.7%

0.7%

0.7%

(0.31%)(0.24%)(0.06%)(0.06%)(0.06%)

0.5%

0.5%

0.4%

0.4%

0.4%

year's· Performance is evaluated every six months, and target values for the next ﬁscal year and beyond
are set after scrutinizing items for horizontal development at each business site.
*1 BM : Benchmark*2 Hazardous waste is deﬁned as "specially controlled industrial waste" stipulated by the Japanese
Waste Management Law.

59

Reduction Objectives for Each Base of Operations (9 Manufacturing Bases in Japan)
2022
Site

BM

Reduction of CO2
emissionsObjectives Results

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

Previous
year'sresults

Reduction ofchemical substanceuse
Objectives

Results

Reduction of

Reduction of waterindustrial waste

consumption

Objectives Results

Objectives

Results

0.5%

0.6%

0.7%

1.0%

1.5%

1.9%

0.2%

0.3%

0.4%

0.4%

2.0%

2.5%

1.0%

1.1%

0.01%

0.01%

0.4%

0.4%

0.2%

0.3%

0.3%

0.3%

0.1%

0.1%

0.9%

0.9%

4.4%

4.1%

3.8%

4.1%

0.1%

0.2%

0.3%

0.3%

0.03%

0.02%

0.0%

12.5%

0.1%

0.1%

0.6%

1.8%

0.2%

0.0%

2.6%

5.2%

2.1%

2.1%

3.7%

3.7%

0.1%

0.1%

0.0%

0.0%

0.4%

0.4%

0.4%

0.5%

0.2%

0.2%

0.7%

0.7%

1.3%

1.3%

0.5%

0.5%

0.1%

0.1%

0.0%

0.0%

0.9%

0.9%

0.5%

0.6%

0.9%

1.1%

1.2%

1.4%

0.5%

0.5%

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

As our efforts for reduction in CO2 emissions, we have promoted reducing electricity usage by
upgrading coolers, among other initiatives.
As our eﬀorts for reduction in use of chemical substances, we have promoted changing thechemicals used for wastewater treatment, among other initiatives.
As our eﬀorts for reduction in industrial waste discharge, we have promoted reducing sludge by
installing waste liquid concentrators, among other initiatives.
To reduce the amount of water used, we are working to improve the recovery rate of pure waterused on-site and optimize the amount of blow water.

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.
60

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
and to industrial waste treatment firms covering SUMCO's Environmental Policies, prevention ofenvironmental accidents and compliance with laws and ordinances.
In 2022, we conducted online group training and document distribution training to prevent infection
due to the COVID-19 pandemic. As for the results of the training, we receive training records fromeach company to confirm the level of understanding.

Contents of Education
1. Requests for vehicle inspections to prevent fuel, oil and other substances from leaking
2. The importance of SUMCO personnel being present at the time of delivery or collection, andrequest that their instructions be followed
3. Request for inspection of industrial waste collection vehicles, particularly to prevent leakage
or dripping of sludge, liquid waste, etc.
4. Introduction to actual environmental accidents that occurred at the Company in the past

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 2022 to December 2022.

Environmental Costs(million yen per year)
Investments

763

Expenses*1

4,675*1 Internal labor cost, depreciation expenses and energy costs (electric power, fuel, water, etc.)
related to operation are not included.

61

Environmental Conservation Benefits, Economic EffectEnvironmental Conservation
Benefits

Category (Unit)(million yen)*3(2021-2022)*2

Electricity consumption (GWh)(70)

Fuel consumption (crude oil equivalent kL)(460)

Water consumption (Mm3)(1.8)

Chemical substance consumption (t)(180)

Industrial waste emissions (t)Economic Effect140(2,600)*2 The negative value indicates that the increase in environmental impacts exceeded reductions due
to increases of production volume and trial productions that does not contribute to sales.
*3 Calculated by our original estimating method.

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. Any nonconformity was not found in the audit
conducted in 2022.

62

Compliance with Environmental Legislation
The SUMCO Group identiﬁes the requirements of laws, regulations and agreements and veriﬁes
compliance. None of the items which is incompliance with laws and regulations were found in 2022.
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(2018)

4 years prior(2019)

3 years prior(2020)

2 years prior(2021)

Last year(2022)

Violations

0

0

0

0

0

Fines (yen)

0

0

0

0

0

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

Accumulated Amount of Contaminated Substances
ecovered Annually from Groundwaterat the Noda Plant

all facility sites.
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 pursuingcountermeasures in consultation with
relevant parties. At present, we areworking to prevent the spread of andrecover contaminated substances byusing a pumping well set up near theboundary of the plant grounds.
In ﬁscal year 2022, there were no new incidents related to industrial water/wastewater across the
SUMCO Group.

ISO 14001 Management System Certiﬁcate
ISO 14001 Management System Certiﬁcate [4.8MB/5Pages]
To ESG-oriented Investors
63

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 2022 (SUMCO Group [Japan])64

List of Boundaries
CO2
Site

Energyusage

emissions
stemming
fromenergyWater
used/wastewaterIndustrial
waste
generated

AtmosVOC

PRTR

emissions emissions

phericAbbre-

pollutantviationemissions

usage
Kyushu Factory(Nagahama,

〇

〇

〇

〇

〇

〇

〇

〇

〇

〇

〇

〇

〇

〇

〇

〇

〇

〇

〇

〇

〇

Yonezawa Plant

〇

〇

〇

〇

—

〇

—

Chitose Plant

〇

〇

〇

〇

〇

〇

—

JSQ Division

〇

〇

〇

〇

—

〇

〇

〇

〇

〇

〇

〇

〇

〇

Imari)
Kyushu Factory(Kubara, Imari)
Kyushu Factory(Saga)
Includes
SUMCO
Group
companies
in Japan

SUMCO

SUMCO
TECHXIV Corp.
Nagasaki Plant

STC

SUMCO
TECHXIV Corp.

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

Miyazaki Plant
SUMCO
Technology
Corp. Noda Plant
SUMCO Phoenix
Corporation
SUMCO

PT. SUMCO

Group

Indonesia

Companies
Overseas

FORMOSASUMCOTECHNOLOGYCORPORATION* Including all Japan and overseas sites.

65

Environmental Load (Japan)
CO2 emissions (Japan) (thousand tons-CO2 per year)

Water consumption (Japan) (Mm3 per year)

66

Environmental Load (Overseas)

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

Water consumption (overseas) (Mm3 per year)* CO2 emissions of the overseas subsidiaries are calculated using the emission coeﬃcient of eachcountry based on the Greenhouse Gas Protocol Initiative.

67

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(2018)(2019)(2020)(2021)(2022)

Scope 1 (direct)

25

26

25

27

28

Scope 2 (indirect)

877

702

765

812

765

Scope 3 (other indirect)

4

612

694

758

882

Scope 1&2

902

728

790

839

793

Scope 1, 2&3

906

1,340

1,484

1,597

1,675

* 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

2022

1

Purchased goods and services561

2

Capital goods

1233Fuel- and energy-related activities (not in Scope 1 or 2)

110

4

Upstream transportation and distribution

48

5

Waste generated in operations

26

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 applicable̶*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.
68

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(2018)(2019)(2020)(2021)(2022)

SUMCO

524

1,014

1,132

1,228

1,316

STC

156

112

119

131

120

FST

152

144

165

165

167

SPX

61

58

57

60

60

SPTI

12

12

12

12

12

Total

906

1,340

1,484

1,597

1,675

* 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(2018)(2019)(2020)(2021)(2022)

CO2

25,00026,00025,00027,00028,000

CH4

—

—

—

—

—

N2 O

—

—

—

—

—

HFC

0.012

0.012

0.006

0.014

0.014

PFC

—

—

—

—

—

SF6

—

—

—

—

—

Other

—

—

—

—

—

5 years prior

4 years prior

3 years prior

2 years prior

Last year(2018)(2019)(2020)(2021)(2022)

1,793

1,707

1,792

1,877

1,963

451,403429,838

451,085

472,505494,290

8,711

9,054

8,804

9,670

10,103

Energy Consumption

Electricity usage (GWh)Electricity (converted topetroleum) (kL)
Fuel (converted topetroleum) (kL)69

Water Supplied(Mm3 per year)

5 years prior

4 years prior

3 years prior

2 years prior

Last year(2018)(2019)(2020)(2021)(2022)

13.2

13.5

14.8

15.7

17.3

3.4

3.3

3.2

3.5

3.8

Quarry water

̶

̶

̶

̶

̶

Potable water

1.3

1.2

1.1

1.3

1.3

External drainage water

̶

̶

̶

̶

̶

Rainwater

̶

̶

̶

̶

̶

Seawater

̶

̶

̶

̶

̶

Total

17.9

18.0

19.1

20.5

22.4

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(2018)(2019)(2020)(2021)(2022)

SUMCO

9.4

9.7

10.4

11.1

12.7

STC

4.1

4.1

4.2

4.6

4.8

FST

2.6

2.5

2.8

3.0

3.0

SPX

1.4

1.3

1.3

1.4

1.5

SPTI

0.4

0.4

0.4

0.4

0.4

Total

17.9

18.0

19.1

20.5

22.4

* Please refer the page of "Eﬀective Use of Water Resources" for water-stressed area.
Drainage Water(Mm3 per year)

5 years prior

4 years prior

3 years prior

2 years prior

Last year(2018)(2019)(2020)(2021)(2022)

7.7

7.8

8.6

9.1

10.3

surface water sources

̶

̶

̶

̶

̶

Total water drained tounderground sources/ well
water sources

̶

̶

̶

̶

̶

5.0

5.2

4.7

4.8

5.1

Other drainage water

3.3

3.3

3.1

3.5

3.5

Total drainage water

16.0

16.3

16.4

17.4

18.9

Total water drained into the
ocean
Total water drained toTotal water drained outsideof plants

70

Drainage Water (by Company)(Mm3 per year)

5 years prior

4 years prior

3 years prior

2 years prior

Last year(2018)(2019)(2020)(2021)(2022)

SUMCO

8.3

8.4

8.9

9.6

10.8

STC

3.7

3.8

3.7

4.0

4.2

FST

2.1

2.1

2.3

2.3

2.3

SPX

1.5

1.6

1.1

1.1

1.2

SPTI

0.4

0.4

0.4

0.4

0.4

Total

16.0

16.3

16.4

17.4

18.9

VOC emissions(tons per year)

5 years prior

4 years prior

3 years prior

2 years prior

Last year(2018)(2019)(2020)(2021)(2022)

9.3

8.7

8.4

11.3

10.3

VOC

Note; Chemical Substances have been tabulated based on the PRTR system of the Ministry of
Economy, Trade and Industry since last year.

To ESG-oriented Investors71

Combating Global Warming
To help prevent global warming, the SUMCO Group identifies both external and internal challenges
to preventing climate change based on the Company's business goals/Environmental Policies andthe needs 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 toEnvironmental Management 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. At the Noda
Plant, we cut electric power usage by upgrading coolers, changing over to LED lighting, and othermeasures.
In Japan, the SUMCO Group also has registered with the Environmental Reporting Platform
Development Pilot Project of the Ministry of the Environment. This undertaking encourages thedisclosure of environmental information and dialog among parties including companies andinvestors. It is contributing toward the creation of a sustainable society by helping to ensure thatcompanies actively engaged in environmental activities are properly recognized for their efforts
and gain investor funding support as a result.
In 2022, major investment in CO2 reduction totaled 889 million yen.
CO2 Emissions (Scope 1+2)
(SUMCO Group)

CO2 Emissions per Silicon Wafer (sales)(SUMCO Group)72

Cumulative Reduction of CO2 Emissions(SUMCO Group)

Electric Power Consumption(SUMCO Group)

Electric Power Consumption per Silicon
Wafer(sales) (SUMCO Group)73

Eﬀorts to Introduce Renewable Energy
Investment in Clean Technologies (such as Solar Power Generation, etc.)
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.
We are considering the introduction of renewable energy (green electricity) in the future, and willcontribute to the further reduction of CO2 emissions.

Procurement of Non-Fossil Electricity (such as J-Credit and Non-Fossil
Certiﬁcates, etc.)
The SUMCO Group has started introducing procurement of non-fossil electricity to achieve thegoals for goals for carbon neutral set in 2021. With this introduction, the Group's procurement of
non-fossil electricity input in CY2022 will be 1.61GWh, which is expected to contribute to a
reduction of approximately 480t/year.

SUMCO Group Renewable Energy Introduction Results
Unit
Renewable electricity
Non-renewable electricity
Renewable energy ratio（Ratio of renewable electricity）

GWh

Total

％

Last year(2022)
1.74
1,556
1,558
0.11

Internal carbon pricing（ICP）system
The SUMCO Group has introduced an Internal Carbon Pricing (ICP) system from January 2022 inorder to achieve both reduction of CO2 emissions and business growth. We will convert CO2
emissions into costs and use them as one of the judgment criteria for environmental investment topromote the reduction of CO2 emissions and energy conservation.
74

CO2 Reduction through Modal Shift to Ship Transport in the Field ofLogistics
CO2 Reduction through Modal Shift to Ship Transport
SUMCO used to rely solely on
airfreight for the transportation ofsilicon wafers to overseas markets.
However, to reduce both CO2emissions and transportation costs,
we have been promoting a modal
shift to ship transport for some ofour products since 2009, taking into
account factors aﬀected by longer
transportation lead time and changes in the transportation environment. We conduct tests before
switching to ship transport to conﬁrm that the quality of products is not aﬀected, as well as
consulting with customers.

Climate Initiative
SUMCO has endorsed the Japan Climate Initiative (JCI) declaration to "join the global frontline fordecarbonization from Japan" and has been participating since April 2023.
JCI is a network of companies, local governments, NGOs, and other organizations in Japan that are
actively working to combat climate change.
Click here for Japan Climate Initiative (JCI)
To ESG-oriented Investors

75

Reduction of Waste
In Japan, the SUMCO Group is working to
reduce the amount of waste generated as part

Amount of Disposal and Rate of Recycle(SUMCO Group [Japan])of environmental conservation efforts. In
particular, to deal with the large volume ofsludge generated at our plants, the SUMCO
Group is making efforts to optimize thechemicals injected for wastewater treatment,
and to deal with waste oil, waste acid, waste
alkali, waste plastics and other waste, we arefocusing on promoting their recycling andconversion 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 2022 was 84.8%.
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 36.6% in 2022.
Amount of Water Recycled and Rate of
Recycle(SUMCO Group [Japan])Amount of Water Supplied and Discharged(SUMCO Group [Japan])Amount of Water Consumption by Water
Source (SUMCO Group [Japan])Amount of Water Supplied per Product (Sale)(SUMCO Group [Japan])* The amount of Water Supplied per Product (Sale) until
2021 have been corrected from those disclosed in thelast year’s report.

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 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 2022 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

Kyushu Factory (Nagasaki)

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 andTransfer Register / PRTR Law) requires
businesses to report the amounts of any
designated chemical substances released into
the environment or transferred.
There are 12 substances subject to reporting
under the PRTR Law. The majority of these aresubstances contained in cleaning agents andfuels.

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

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 2021 to March 2022
(t per year)

Ordinance

AmountChemical SubstancehandledAtmos-

Publicpherewaters

17.0

-

1.5

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

-

-

-

-

71

Ferric chloride

6.9

-

-

-

-

-

-

80

Xylene

85.2

0.8

-

-

-

-

1.0

2.3

-

-

-

-

-

1.9

88

Hexavalent chromium
compound296

1,2,4-Trimethylbenzene

96.8

0.2

-

-

-

-

-

300

Toluene

10.8

10.5

-

-

-

-

0.4

332

Arsenic and its inorganic
compound

1.6

-

-

-

-

-

-

784.3

0.2

0.0

-

-

-

269.6

374

Hydrogen fluoride and its
water-soluble salts

405

Boron compound

2.5

-

0.0

-

-

-

-

407

Poly (oxyethylene) alkyl ether

24.6

-

0.0

-

-

-

3.2

40.0

-

-

-

-

-

40.0

8.0

-

-

-

-

-

-

1,081.5

11.7

0.1

-

-

-

316.1

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

Initiatives for Biodiversity Activities
Our lives are supported by various beneﬁts from "biodiversity" . "Biodiversity" is also essential forhuman survival and quality of life.
The SUMCO Group recognizes that our business activities have a direct or indirect impact on
biodiversity. Based on this recognition, The SUMCO Group aims to realize a sustainable society inharmony with nature that can continue to receive the beneﬁts of "biodiversity" based on the"SUMCO Basic Environmental Policy".

Biodiversity Conservation Activities
In 2022, we carried out biodiversity conservation activities at seven locations in Japan, mainly inareas where our facilities are located.

Click here for other social contribution activities
82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 Board of Directors, reviews the risks and opportunities arising from climate change,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: BSC's Structure and Objectives

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.

83

(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

Timing of

Expected result

embodiment

Loss of sales opportunities and increase inprocurement costs due to intensifying

Medium to long term

Increase in operating costs due to theMedium term tocompetition in the semiconductor sector

Transition
risk
Risk

introduction of a carbon tax (carbon pricing)
Increase in waste disposal costs due to theformation of a recycling-oriented society
Increase in business costs due to theincreased burden of renewable energy levy
Increase in capital costs due to the expansionof ESG investments

Suspension of business activities due to wind
Physicalrisk

and flood disasters

Supply chain disruptions due to wind andflood disasters

Possibility

Degree ofimpact

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

medium to long term
Medium to long term
Short term to

medium to long term

Small tolarge

Small tolarge

Expansion of demand for energy-saving-

related equipment due to the advancementof energy conservation and renewableenergyExpansion of demand for automotive
Opportunity

products due to the spread of Evs

Increase in demand for server-related

equipment due to the spread of telework
Increase in demand for automationequipment due to the spread of automationand digitization

84

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

Emissions in 2030

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.

85

(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.
(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 ofrenewable energy 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.

86

Consumer

Electric

sectorsectorequipment

railcarMarket size of
power

A few

30%

semiconductors inpercent

percentage *6

Products anddevices withsemiconductors

having promising
growth potential

Inverters forElectricAC(inverter

adapters,
etc.

railcarsmodules)equipment
subject toscenarioAir

conditioners

Electric
railcars

analysis

Productionof high-The

demand for

efficiency air rail travel,
conditioners
withinverters iswhose CO2
emissions
per travel

estimated to distance is
be about
low, will

stations,

power

transmission

infrastructure,

Solar and wind
power

generationequipment

volume ofto be installed

percentageof airconditioners
withinverters is
also

expected to
rise.

products, wethe amount of

to be about
1.2 times

solar and windcompared

globally will behigher,to the 4°C
scenario(business

as usual).

supplies, UPS,
etc.

applications,such as motor
control,

inverter

control, andwelding
Energyefficiency ofcontrol unit

the entire(ECU)

scenario

conducted for

manufacturing
This sector was

Although there

because therechangethe analysis
are noappropriate

climate change

power to be
introduced
about 1.5

times greaterthan in the 4°C
scenario(business as
usual).

87(see

the cycle ofdemand forservices is

automotive

products dueto the spreadof EVs")plant

not included in"Expansion ofisproduction

Server power

equipment andgenerationachieving thegoal of less than
2°C in 2030

current

in power

estimate that

estimated20%

and high-semiconductor scenarios fordevicesthe sector, andscenario

usual). The

20%

Electronic

power
generalsemiconductors automotive

related(business as

sectorsystems, etc.

analysis is

production

demand toward

power supply

forecast thedifficult tothat underof railcars

wireless

A separate

semiconductor

the 4°C

charging

Although it isChanges inThe

Industry sector

machinery

grow.

power

equipment

High-voltage

equipment,

generation

Information &communication

20%

EVs, quick

1.3 times

higher thansector

power

etc.

Products andelectronics

A few percent

Solar and windhomeappliances,

Energy sector

Automotive &products andshorter than inother sectors,
makingmedium- tolong-term

projections
diﬃcult.

are no climate
scenarios forindividual
equipment andproducts in this
sector, weestimate thatenergyintensity in the
manufacturingindustry will
decrease by

about 7% incomparison

with the 4°C
scenario(business as

usual) due toenergyconservationand improved
eﬃciency.

Consumer

Electric

sectorsectorequipment

Increased

Althoughof airsize isproduction
conditioners
due toOur business

opportunities in thetransition towardachieving the goalof less than 2°C

railcarglobalwarming

and greater

extremes ofweather is

expected tohave apositive

impact on

demand for
ourproducts.

the market
small, we
expect apositive

impact on

demand for
ourproducts as
demand forelectric

railcars

increases
due to amodal
shift.

Energy sector

Automotive &electronics
sectorsmall, we

expect that the
global shift torenewableenergy will

increase theproduction ofpower

conditioners
and otherproducts,

which will havea positive

impact on

demand for our
products.

equipment

Industry sector

sectorConsidering

Although themarket size isInformation &communicationthat there are
A separate
scenario

analysis isconducted forgeneralautomotive

semiconductor
devices(see"Expansion ofdemand forautomotive

products dueto the spreadof EVs")no direct

climate change
factors

affecting thedemand for

products andservices in this
sector, we

assess that thedifference indemand for
power

semiconductors
in this sector
between the

2°C and 4°C
scenarios is

We expect thatdemand for
power

semiconductors
will increase
due to suchfactors as

progress inenergyconservationand higher

efficiency infactories,

which will leadto increased

demand for our
products.

small.

Our business

opportunities

with the spreadof next-

generation
power

The market for next-generation power semiconductors (SiC, GaN, etc.), which are currently
undergoing development, commercialization, and cost reduction, is expected to expand

significantly by 2030. We will therefore continue to monitor the spread of next-generation
power semiconductors, pursue development, and increase our capacity.

semiconductors*6 Based on a research company's forecast data88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 each vehicle 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 forautomotive 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 theeffect of further 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.
89

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

90SocialSpeedy, Accurate and Fair Disclosure of Corporate Information ………… ��

The Pursuit of Quality and Reliability………………………………………… ��
Supply Chain …………………………………………………………………… ��
Respect for Human Rights …………………………………………………… ���

Human Resources Development and Utilization…………………………… ���
Initiatives for Safety and Health ……………………………………………… ���

Health and Productivity Management Initiatives ………………………… ���Community-based Social Contribution Activities ………………………… ���
Basic Policy on Safety and Health・Health Declaration …………………… ���
Support Raising Next-Generation Children ………………………………… ���Social Data (personnel)……………………………………………………… ���91

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.

92

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 inJapan and overseas. Our Annual Report andMessage to Shareholders

Message to Shareholders are also published toconvey messages from top management andAnnual Report 2022

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 2022 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

93

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 that manufacture silicon wafers including aﬃliate companies inJapan and overseas have obtained IATF 16949 and ISO 9001 certiﬁcations. Furthermore, allsites that manufacture quartz crucibles and polycrystalline silicon including aﬃliate companies
in Japan and overseas have obtained ISO 9001 certiﬁcations. We strive to ensure stable levelsof quality as well as further enhance it, and have made continuous improvements to ourquality management system.

94

The SUMCO Group Mission Statement, Quality Policy and Targets

Quality Education
To enhance product reliability and safety, it is necessary for not only those in charge but also eachworker 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 each education program to each production site to provide necessary
education to the human resources that need it whenever required.
In 2022, having taken steps to deal with COVID-19, the SUMCO Group conducted around 250
internal seminars in an effort to enhance the knowledge and awareness of quality control on the partof employees.

95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.

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.

96

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. In addition, our business plan reﬂects ourcustomers' demand for EVs, which are being further developed and popularized to achieve carbon
neutrality, and for leading-edge products incorporating increasingly diverse and advanced AI
technologies, as well as the formulation of technology development roadmaps that accommodate
customers' needs for higher precision and enable product diﬀerentiation. By doing so, we strive togain and maintain a strong presence among customers.
Through these SUMCO Group initiatives to promote close communication with customers, we
endeavor to provide the most appropriate information.
Flow for Sharing Customer Satisfaction (CS) Evaluation Information

97

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 Investors98

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
human rights, 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,
and efforts 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.

99

*1 [Reference] Procurement amount ratio by area in 2022

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 theseeﬀorts in our assessment of suppliers in an eﬀort to develop a more robust supply chain.

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. We also call for theireﬀorts to respect human rights, protect the environment, comply with corporate ethics, etc. whencontracting with new suppliers.
100(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 2022, same as 2021, we held the session by web-based meeting
due to COVID-19.)
June 3, 2022 (461 people from 241 companies)
November 18, 2022 (463 people from 241 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. Furthermore, we request them to develop an environmental management systemthat complies with ISO 14001 by distributing this handbook.

(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.

101

(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 or irreplaceable to our production activities. There are more than 200 such companies, andSUMCO has managed to secure responses from almost all of them. Based on the results of thesequestionnaires, we conduct regular CSR audits that include ﬁeld audits of a given number ofsuppliers. Along with providing explanations of our CSR procurement policy and environmental policy
and asking for understanding and cooperation, we verify the state of compliance with each of theitems on the CSR questionnaire such as human rights, safety, environment, ethics, information
security, and management systems, as well as conﬁrming the status of improvements.
The CSR Audit found suppliers who had failed to suﬃciently protect whistleblowers in internalreporting, suppliers who had not conducted training on how to prevent insider trading for several
years, suppliers who had not adequately managed expiration dates for legally stipulated safety andenvironmental qualiﬁcations and suppliers who had failed to secure emergency exits and escaperoutes for employees. SUMCO requested the understanding of suppliers and asked them to correctthese issues, leading suppliers to improve their operations. SUMCO Group will continue to promote
CSR management in our supply chain.

102

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. Information Security(1) Defense Against Threats on the Network.
(2) Management of Electronic Data and Access Rights, and Establishment of On-site Entry
Rules
6. Management Systems
103

(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 onvarious risks such as disruptions to raw material procurement, comprehensive corruption risk,
violation of laws and risk of using regulated/prohibited substances, asking suppliers with high-risk
items to improve their operations to prevent risks.

104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. As part of this initiative, we distribute a self-check sheet on
Business Continuity Plan (BCP) and risk countermeasures to main suppliers along with theaforementioned CSR questionnaires to confirm their BCP and risk management status. Based on the
responses, we conduct checks on the efforts and status of BCP and risk countermeasures for the
relevant suppliers during supplier audits.

1. Continuing optimum inventory control based on the characteristics of each procured
material
We will review inventory quantities, storage sites, transportation methods and otheraspects 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.

105

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 Investors

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106

Respect for Human Rights
SUMCOʼs 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. Basedon this policy, SUMCO Group's Code of Corporate Conduct and various regulations clearlydeﬁne 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 theinternalreporting 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 employeesʼ 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
to manage 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 and we also ask our suppliers to respect human rights in accordancewith the SUMCO CSR Procurement Policy. (Refer to the Supply Chain page for details.)

107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 otherpossible 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 theyear, 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.
108

Establishment of a Harassment Consultation Service
SUMCO has established a Harassment Consultation Service, in addition to the internal reporting
hotline, to serve as the point of contact for employees to consult about issues related to humanrights violations and harassment. To ensure that employees can casually seek advice at any time,
the consultation services are staﬀed by both male and female consultants who work based on threeprinciples: (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 the relevant department, measures forrectiﬁcation and prevention of a recurrence are taken as the situation calls for, and the results arereported to management, while the consulting party is given feedback. In addition, the results areshared with the Human Rights Awareness and Promotion Committee, putting them to Group-wideuse in measures for preventing a recurrence.
In 2022, the Harassment Consultation Service handled 16 consultation cases.
Harassment Consultation Service System

Harassment Training

We hold harassment training to eradicate harassments for management-level staﬀ in each region. In
2022, a total 1,100 staﬀ members underwent the training.
109

Response to Risks of Labor Standards Violations, etc.

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.
Regarding the occurrence of events that violate various laws or infringe on human rights, weconsider them as risks that could impede SUMCO's business continuity. Based on the Basic Rules on
Risk Management, we conduct risk assessment and develop countermeasures. (Refer to the Risk
Management page for details.)

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 88%.

110

Compliance with Fair Wages
Average income per employee for ﬁscal 2022 was 6,786,000 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
irrespective of gender. The SUMCO Group also follows laws and regulations regarding minimum
wages in each country, and fulﬁlls its obligation to pay employees appropriate wages based on thelocal cost of living 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 Japanʼs social security system, these include additional
health insurance association payments, and individual options such as enrolment in an employee
shareholding association, TSUMITATE NISA, property accumulation savings, and group life
insurance.

To ESG-oriented Investors

111

Human Resources Development andUtilization
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
are working to cultivate an awareness of understanding and respecting a diverse range of culturesand values within the Group, and are endeavoring to develop globally competitive human resourcesby enhancing programs such as study abroad and foreign language learning schemes.
In 2022, a total 22,829 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.

112

Career-formation programs

113

VoiceProcess Planning Oﬃce
Mami Kubota

Q. You spent two years doing research work at the State University of New
York. What made you decide to apply for the overseas program?
Ever since joining the Company, I had been thinking about the need to improve mycommunication skills, since the work includes opportunities to give presentations in front ofpeople from abroad. When I heard about the chance to apply for this program, I jumped on it,
eager to take on the challenge.

Q. Looking back at your research experience at an overseas university, was it
diﬀerent from a Japanese university?
One diﬀerence I noticed from Japanese universities is the way American university students
actively oﬀer their opinions, and are good at persuasion. Japanese university students, on theother hand, I feel are better when it comes to carrying out a detailed investigation of theirresearch topic in advance, and are more thorough in setting up experiments. As for
instructors, a big diﬀerence is that in the US they tend to leave research up to their students,
mostly staying out of things, whereas instructors at Japanese universities give detailed advice.

Q. How do you plan to put to use what you learned abroad in your company
activities?
Before I went abroad, when conversing with people I often just assumed, “Surely this personshares the same awareness as mine.” After living in the US and talking with people of diverse
backgrounds, however, I changed to the assumption, “The other personʼs awareness iscertainly not the same as mine.” From this experience, since returning to Japan I try to

conﬁrm the other personʼs understanding of things as much as possible. People in US researchlabs, while being sure to get a solid grasp of the main points of their studies, also value theirprivate life, carrying out their research with a proper work-life balance. Drawing on thisexperience, when I am in a situation where I have to conﬁrm understanding, I make it apractice to stick to the basics and provide balanced guidance.

114

Engineer Presentation Contest

Engineer Presentation Contest

Diversity and Inclusion
SUMCO believes that the promotion of diversity and inclusion is essential for becoming the strong
company which can grow sustainably. Since our company has three roots: Mitsubishi, Sumitomo,
and Komatsu, we have fostered a culture in which we can bring together and utilize the knowledge
and expertise of each. In addition to this, we work to further enhance our corporate value so thatdiverse talents can work to utilize their ideas and experiences by expanding measures to promotewomen’s career and systems, local hires at our domestic and overseas bases and experienced

workers of other companies, so that diverse talents can work to utilize their ideas and experiences.
We will continue to actively promote diversity and inclusion initiatives to meet our stakeholders’expectations.

115

Promoting Active Participation of Women
To provide employees who raise children with a more comfortable workplace environment and tosupport their work-life balance, SUMCO is focusing on creating an environment in which it is easy for
women to work by establishing diverse employment support programs such as longer child-careleave period than the statutory leave period, a telework system, and a diverse short working hoursystem. In 2016, as part of these efforts, the Company has established the SUMCO Nursery School
Imari as an in-house day-care facility at our Kyushu Plant in the Imari area, the largest site acrossthe SUMCO Group. We also provide a childcare support allowance for employees who are unable touse the SUMCO Nursery School Imari.
Additionally, we improve support for women employees by developing a “Retiree Comeback
Program” that allows employees who are forced to leave the company temporarily due to childcare
or other reasons to return to work again. To further increase diversity within the company and tofurther promote women’s participation, we have set a medium-term goal of increasing thepercentage of female managers to 10% in SUMCO* and 12% on a consolidated basis (in SUMCO
Group) by 2030, and actively promote regular and experienced female employee hiring.

* Total figures include the number of SUMCO employees assigned to other companies and exclude secondees to
SUMCO Corporation from other companies.

As a new form of regional contribution, the facility is 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.

Support programs for each life event

Enlarge the ﬁgure
116

Program

Name of policy measureChildcare leave

Eligible up to time child is 3 years oldChildcare leave at the time

Up to 4 weeks of paternity leave within 8 weeks after the child's

Shorter workdays during

Up to time child enters junior high school, choice of 4-hour or 6-hourof birthchildcare

Flexible work hours

Childcare
supportWork from home (remotework) option

Special paid time off
SUMCO Nursery School
Imari

Grants toward nurseryschool costs

Family care leave
Shorter workdays during
family care

Flexible work hours
Family care
supportSpecial paid time oﬀ

Work from home (remotework) option

Special time oﬀ when
spouse gives birth
Other support

Description

Return-to-work programfor former employees

birth, which can be divided into 2 periods
workdays

Up to time child enters junior high school, free arrangement of work
times during the day adding up to a normal workday of 7 hours 45
minuteEmployees in a department and work category enabling them towork from home may choose to work remotely, as theircircumstances warrant, at a maximum until child enters junior highschoolUp to time child enters junior high school, in addition to the legally

mandated time off for care of an ill child, paid time off can be taken

for the necessary number of days when care for an illness is needed
A nursery school on the company premises, available also to childrenof employees within access range

Employees outside the range of access to SUMCO Nursery School

Imari can receive monthly grants of 10,000 to 20,000 yen up to timechild is 3 years old

Leave for care of a family member can be taken for a total of one
year in up to three installments

A choice of 4-hour or 6-hour workdays (for a total of up to three
years; can be divided into multiple installments)

Free arrangement of work times during the day adding up to anormal workday of 7 hours 45 minutes (for a total of up to three
years; can be divided into multiple installments)

In addition to the legally mandated time oﬀ for family care, paid timeoﬀ can be taken for the necessary number of days when family careis needed

Employees in a department and work category enabling them towork from home may choose to work remotely, as theircircumstances warrant

When a spouse gives birth, a total of 3 days of paid time oﬀ within
10 days before and after birth

Former employees who had to leave their job behind for personalreasons such as childcare or family care, and who wish to return,can do so by following the set procedures

117

PT.SUMCO Indonesia also offers a scholarship program for the children of its employees. We hopethat this scholarship will contribute to the future development of Indonesia.
(Photo: Scholarship program event at PT.SUMCO Indonesia)

Employment of People with Disabilities
The SUMCO Group is actively working
to employ 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 2022, theemployment rate of people withdisabilities in Japan and overseas is
1.55%, and the actual employment
rate of people with disabilities in Japan
is 2.17%, in comparison with 2.3%,
the statutory employment rate.
Due to the increase in total number of
employees through securing personnel
for production expansion, theemployment ratio of persons withdisabilities has relatively decreased.
However, the entire group is promoting
the hiring of persons with disabilities to* The ﬁgure for each ﬁscal year is the average of theperiod from January to December of the following year.

increase the employment ratio.

118

Employment of Older Workers
We have set up a re-employment system by which employees, if they are well-motivated and wish
to continue 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.

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 and utilize talented

global human resources regardless of nationality. The SUMCO Group seeks to achieve even further
growth as a global company by improving each other.
Number of Employees(People)Actual at end of 2022

Item

Regular employees

Managers

Sumco *

Consolidated

Total number of people

9,189

4,471

Male

8,334

4,101

Female855

370

Percentage of female

9.3%

8.3%

Total number of people

817

512

Male

760

501

Female

57

11

7.0%

2.1%

Percentage of female

119

Item

Sumco

Total number of

10

peopleBoard member

Male

9 As of Dec. 31, 2022

Female1

Percentage of female

10.0%

Total number of98

peopleNew employee

Male

72 FY2022

Female26

Percentage of female
Average years ofservice (years)

Remarks

26.5%

Male

15.8

Female12.4 As of Dec. 31, 2022

Difference

3.4* Total figures include the number of Sumco employees assigned to other companies and exclude
secondees to Sumco Corporation from other companies.

Item

Regular employees

Temporary employees(As of Dec. 31, 2022)(2022 average)

Sumco

4,622

682

9,189
Consolidated

Japan

6,710

Overseas

2,479

Number of Employees by Region(Consolidated)
RegionJapan
North

AmericaSoutheast
Asia

East Asia
Europe
Total

1,182

Breakdown of Employees (Consolidated)(People)(People)Number of employees

Managers(As of Dec. 31, 2022)

6,710
605
326
1,523
25
9,189

120

Generalemployees

Total(As of Dec. 31,
2022)

Male

760

7,574

8,334

Female

57

798

855

Total

817

8,372

9,189

2022 Data

Number of harassment consultation cases

16

Number of participants in harassment training for management-level employees

1,100

Resignation rate for personal reasons among permanent employees (graph below shows thechange in the past turnover rate)

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

Human resource development

0.91%
22,829 hours
136 million yen

Percentage of employees who attended the32%

above training

Training hours per employee
Percentage of persons with disabilities
employed

4.9 hours

Global Total

1.55%

Japan Only

2.17%

Change in resignation rate among permanent employees
2018

2019

2020

2021

2022

0.66%

0.83%

0.77%

0.85%

0.91%

Men

0.62%

0.73%

0.70%

0.76%

0.88%

Women

1.16%

2.08%

1.60%

1.88%

1.23%

Resignation rate for
personal reasons

To ESG-oriented Investors

121

Initiatives for Safety and Health
Why SUMCO Addresses Safety and healthIn order for employees to reach their full potential and work with vitality, the SUMCO Groupsees ensuring environment where employees can work at ease as one of its crucial social
responsibilities.
Additionally, 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 highregard for human rights, ability and personality, and shall realize fair and diverse ways ofworking." Based on this, the SUMCO Group promote safety and health initiatives under thefollowing 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
consideration and promote traffic safety initiatives as models for society.

122Safety and health Initiatives

Promotion Framework
For the purpose of maintaining and enhancing the Group's levels of safety and health, the SUMCO
Group annually convenes the Company-wide Safety and Health Committee in which report on thestatus of safety and health-related initiatives and information sharing are made. The committee,
attended by the Chief Safety and Health Officer, plant general managers, and presidents of groupcompanies, reports on Group-wide performance, issues, activities related to safety and health. It
also reviews and approves safety and health-related issues and targets to be addressed in thefollowing fiscal year.
Additionally, each plant shares safety and health information and improve safety and health issues,and engages in daily activities to achieve safety and health objectives, through operating site safety
and health committees, workplace safety and health committees and small group workplace safety
meetings.
Company-wide Safety, Health and Hygiene Promotion Structure123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

managers, department

Review and discussion of SUMCO

Once amanagers, labor union executive

Group safety, hygiene and healthyear

board, industrial physicians,

management policies andcompany-wide and operating sitemeasuressafety and health administrative
offices
Chief Safety and Health Officer /Executive Officer in Charge,

Production
Technology

Once aDivision Safety and

year

Health Committee

executive officers, plant generalmanagers, industrial physicians,
company-wide and operating site
safety and health administrative

Review and discussion of
Production Technology Division
health, hygiene and safetymeasuresofficesLabor union executive board
Labor-Management
Safety Round-Table
Company-

Meeting

Once ayear(three highest ranks of the

Review and discussion of SUMCO

board, union branch manager),Group (domestic) safety, hygiene

company-wide safety and healthand health measures

administrative officewide
Meeting of Safety
and Health
Personnel
Overseas Affiliate
Company Safety
Liaison Meeting

Once amonth
Six times
a year at
eachcompany

Workplace Safety
and Health
Promotion
Personnel

Prevention
Department
Inspections

safety and health administrative

Group (domestic) safety andoffices

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 healthOnce apromotion personnel, company-

monthwide safety and healthadministrative office

Exchange Meeting
Safety and Disaster

Company-wide and operating site Review and discussion of SUMCOManagers of each department,
Nine

workplace safety and healthtimes apromotion personnel, company-

year

wide and operating site safety
and health administrative offices

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

General safety and healthmanager, plant general

Review and discussion of

Safety and HealthOnce amanagers, labor union branch

operating site safety, hygiene

Committeemonthmanagement, industrial

and health-related policies andphysicians, operating site safetymeasures

Operatingand health administrative offices

Site

Workplace Safety
Promotion
Committee

Workplace safety and healthOnce apromotion personnel, workplace

Detailed review and discussion ofmonthsafety and health administrative

operating site measuresoffices124

LevelMeeting

Frequency

Main Participants

Functions

Department and section
Workplace Safety

Once aand HealthOperatingmonthCommittee

leaders, workplace safety andhealth promotion personnel,
contractor managers

Site
Small Group

Once aWorkplace SafetymonthMeetings
Safety Cooperation
Contractor

managers, group leaders, unit

Association
Meeting (Kyushu
Factory)

Review and discussion of
departmental safety, hygiene andhealth-related policies andmeasuresGroup leaders, unit leaders,Review and discussion of

workplace safety and healthprocess-level safety, hygiene andpromotion personnel

health-related measures

Three

Representatives fromtimes acontractors, SUMCO (advisors,

year

Facility 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 isactively working towards creating a safe and comfortable workplace environment.
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

NumberNumber ofof

Certified

OperatingOperating Sites

Certification

Remarks

Rate (%)

Sites
Group (Domestic /

14

11

79%

Group (Domestic)

10

9

90%

Group (Overseas)

4

2

50%

Overseas)

ISO 45001 / JISQ 45100 certification in 9
operating sites
ISO 45001 certification: 1 operating site
SMK3 certification: 1 operating site** Certification provided by Indonesian National Standard (equivalent to OHSAS18001)

125Major Initiatives to Prevent Work-Related and Traﬃc Accidents
The SUMCO Group conducts annual system audits (internal audits) and management reviews of all
operating sites in accordance with its Occupational Safety and Health Management System. The
SUMCO Group also endeavors to maintain and enhance safety management levels by seeking toprevent work-related accidents through promoting voluntary safety and health initiatives andencouraging the advancement of health and the formation of a pleasant workplace environment.
Additionally, when workers notice a potential hazard, they are obligated to report on it as a near
miss case. 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. Awards are given for outstandingnear-miss reports, and examples of improvements are disseminated across each operating site.
In addition to safety patrols conducted at each operating site and other regular safety and healthpatrols of each operating site by the Safety and Disaster Prevention Department, labor unions,industrial physicians, etc., daily patrols are conducted by workers to inspect and correct potential
hazards and unsafe behaviors in the workplace, aiming at realization of higher 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 provide various
types of audiovisual education, including tiered safety and health education, small group workplacesafety meetings, risk prediction training (KYT), the viewing of movies produced in-house forprevention of chemical injury and disaster of being caught and drawn, other safety-related DVDs ande-learning programs. In addition, we have established "safety dojos" at 9 operating sites in Japan toenhance employeesʼ awareness of safety while raising employees' sensitivity to danger throughsimulated dangerous experiences and to learn about what actions to take in the event of an
emergency, thereby aiming to prevent disasters in advance and minimize damages.
Furthermore, the prevention of traﬃc accidents and drunk driving is another key challenge. The
SUMCO Group strives to prevent traﬃc accidents and drunk driving by providing traﬃc accident
prevention training through traﬃc accident cases and traﬃc-related DVDs, implementing KYT using
videos of traﬃc accidents, and creating maps of dangerous areas along commuting routes.

126Main Education and Training Activities
Category

Statutory
TrainingGroup
Training

Individual
Training

Name of Training

Trainees

Frequency

Instructors

Once a monthCompany-wide and operatingsite safety and healthadministrative oﬃces

Induction training

New employees

Training for newly
appointed safety
managers

General Safety and HealthManager appointees
Departmental andSectional Safety and
Health Manager
appointees

Unit leaders safety
training

Newly appointed unit
leaders

Once a year

Various special training,courses for various
licenses, skills training,etc.

Employees engaged in therelevant work Supervisorsof the relevant work

When
engaging in
the relevant
work

Various skills improvement Qualiﬁcation holder (every
training
5 years)

Once a year

Qualiﬁed in-house employee
or outside instructor

Training for newly
appointed managers

Newly appointed
managers

Once a year

Company-wide Safety and
Health Administrative Oﬃce

Group leader safety
training

Newly appointed groupleaders

Once a year

Company-wide Safety and
Health Administrative Oﬃce

Training for employees
who has been working in
the Company for 3 years
and 10 years.

Employees who has beenworking in the company
for 3 years and 10 years.

Once a year

Company-wide Safety and
Health Administrative Oﬃce

Internal auditor
development training

Newly appointed internal
auditors

Each time

Outside instructor

Internal auditor skills
improvement training

All internal auditors

Once a year

Company-wide Safety and
Health Administrative Oﬃce

Safety training for risk
assessment, etc.

Workers, unit leaders, andworkplace safety andhealth promotion
personnel

Once a year

Operating site safetyadministrative oﬃce andoutside instructor

Once a year

Planned by Company-wide
Safety and HealthAdministrative Oﬃce

Upon
selection

Outside instructor

OSHMS self-awarenesstraining (e-Learning)

All employees

Traﬃc accident prevention
training (e-Learning)

All employees

Once a year

Planned by Company-wide
Safety and HealthAdministrative Oﬃce

Safety conﬁrmation drills

All employees

Four times ayear

Use of safety conﬁrmation
systemGeneral disasterprevention drills

Employees andcontractors

Once a year

Operating site safetyadministrative oﬃce

Late-night evacuation
drills

Shift workers

Once a year

Operating site safetyadministrative oﬃce

Follow-up training

Employees after hiring ortransfer

1, 3, 6, and12 months
afterhiring/transfer

Supervisor at workplacesafety and health promotion
personnel and superior at
workplace127

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
During fiscal 2022, five lost-time

Change in the Accident Frequency Rate*

accidents occurred (the same number(Domestic SUMCO Group)of times as in the previous fiscal year),

Manufacturing industry average
SUMCO Group (Domestic)
SUMCO Group (Domestic / Overseas)
2023 Target

most of which were daily life typeaccidents or due to lack of risk

(frequency rate)

prediction. SUMCO conducts risk

1.40

assessments to prevent such accidents
from occurring in the future, with

1.20
1.00

0.60

assessments for high-risk work (heavy

0.40etc.), and also strengthen knowledge
and awareness education on hazards
and harmfulness.
For the SUMCO Group and contractors,
the number of deaths due to

1.06

1.06

1.20

1.21

1.31 1.25

1.02

0.80

particular emphasis on risk
objects, high places, rotating objects,

0.94

1.20

1.15

0.27

0.20 0.10
0.00

0.00

0.37

0.37
0.25

0.15

0.16

0.24

0.35

2023 Target: 0.20

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 (year)* Accident Frequency Rate = Number of workers killed or
injured in occupational accidents (injuries requiring
one or more days off) / total number of working
hours × 1,000,000

occupational accidents was zero.
Aiming for zero occupational accidents, the Group is working to enhance the effectiveness of existing
activities while actively engaging in new initiatives, including broad introduction of the lockout-tagout(LOTO) safety procedure. Having acquired ISO 45001 certification for its occupational health andsafety management systems, the Group is further developing and enhancing these systems, while
carrying out safety awareness-raising activities based on employee survey results. In these andother ways, the Group is endeavoring to create a workplace environment, one that is safe, healthy,
comfortable and pleasant to work in.
128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 andnon-lost time)

Occupational injury
frequency rate (OIFR)

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

Unit

2019

2020

2021

2022

cases

2

3

5

5

cases

0

0

0

0

cases

17

17

21

13

cases

0

0

1

4

cases

1*

0

2*

1*

cases

0

0

0

0

-

0.18

0.17

0.27

0.26

-

0.00

0.00

0.00

0.00

-

1.01

0.98

1.15

0.67

-

0.00

0.00

3.83

16.64

-

0.06*

0.00

0.11*

0.05*

-

0.00

0.00

0.00

0.00

* 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

129Community-based Traﬃc SafetyInitiatives
The Kyushu Factory 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
Warning Initiative(November)" to encourage drivers to turn on their headlights before it gets dark.
SUMCOʼs Chitose Plant's Regional Cooperation Committee, made up of companies in the industrial
park, has been encouraging for safe driving on the city's main roads to coincide with the NationalTraﬃc Safety Campaign in autumn. Furthermore, we actively participate in the Challenge Safety
Rally organized by the Chitose District Safety Driving Management Association and take the lead inpromoting safe driving.
SUMCO's Yonezawa Plant also regularly encourages safe driving at events and on the road with thecityʼs and the industrial park's Safe Driving Supervisors Committee.
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 chairof the Noda City Sothern Factory Liaison Council.

Early Headlight Lighting Warning Initiative (Kyushu
Factory)

Safe Driving Warning Initiative (Chitose Plant)

130

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

October 2017

Yamagata Labor Bureau Director's Commendation

October 2017
December 2017
June 2018
September
2018
October 2018
February 2019Awarded site

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
Driving Management from the Miyazaki Prefecture
Silver Order of Merit from Japan Red Cross Society
Ministry of Health, Labour and Welfare Class 3 No
Accident Record (15.8 million hours)

2019

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)November

Letter of Appreciation from Japanese Red Cross

2020

Society (Blood donation)

October 2021

Chitose Plant, SUMCO Corp.
SUMCO Technology Corp.

Miyazaki Plant, SUMCO TECHXIV Corp.

Police Headquarters

Commendation for Business Operators with

October 2020

Miyazaki Plant, SUMCO TECHXIV Corp.

Commendation as Model Business Site for Safe

September

October 2019

Yonezawa Plant, SUMCO Corp.

Commendation for Business Operators Cooperatingwith the Local Fire Brigade.

To ESG-oriented Investors

131

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.
Kyushu Factory (Nagahama), SUMCO Corp.

Health and Productivity Management
Initiatives
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.

132

Health Promotion Framework
The Company-wide Health Committee

Health-related Meetingsand Health Promotion Meeting areconvened regularly. These bodies
report on 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 (12 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.

Health and Productivity Management Initiatives
We promote initiatives to maintain andimprove the health of each employee as acompany through various well-planned
company-wide initiatives.
SUMCO was selected by the Ministry of
Economy, Trade and Industry (METI) and theTokyo Stock Exchange (TSE) as a company
that excels in health management under “the 2023 Health & Productivity Stock Selection,” for thesecond consecutive year, where one company from one industry category was generally selectedfrom among the listed companies. Additionally, SUMCO Group has been certiﬁed as one of the“White 500” corporations under “the 2023 Certiﬁed Health & Productivity Management Outstanding
Organization Recognition Program” sponsored by the METI and The Nippon Kenko Kaigi for the ﬁfth
consecutive year from 2019.

133

Our health management challenges
We focus on three health management issues in particular: "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
Results of Activities
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.
134

Case Studies of Activities
Workplace Environment Improvements Based on Stress Check Results (Examples of Good
Practices)
In the SUMCO Group, departments whose stress check results show higher loads in the analysis arevoluntarily improving the workplace environment by their respective departments within theframework of OSHMS. As an example of improvement activities, there is a case where the leader ofa workplace where long working hours continued created and executed a Fault Tree Analysis (FTA),
reviewed the results, and evaluated the effectiveness of the countermeasures. We succeeded inearlier leaving times for each employees and reduction of overtime hours by adjusting work volume
and personnel, redistributing tasks among employees, and implementing initiatives such as posting
messages on workplace bulletin boards to reduce overtime hours in order to foster awarenesstowards reducing working hours and monitoring the utilization of regular leaving days. In addition tothese efforts, the SUMCO Group promotes initiatives that respect the employees’ work-life balance,such as tracing the annual paid leave utilization rates and encouraging them to take annual leave.

Main Action Items
Workplace environment improvement activities by OSHMS
Preparing and sharing a collection of workplace good practice case studies
Company-wide development of workplace environment improvement award system, including the
SUMCO Group companies in Japan135

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 the Group employees
has diminished by 14.1 % during these five years, from 46% in 2018 to 31.9% in 2022.
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 and to provide subsidies through thepurchase of medications, as part of our own support measures. This support provides smokers withthe opportunity to take up the challenge of quitting smoking at no cost to themselves, while also
taking advantage of health insurance programs.
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 (Free company-subsidized
smoking cessation treatment)
Workplace anti-smoking challenge race (All workplace participation: Kyushu Factory)
Continued 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 offer health classes and healthguidance to employees before the age of 40 to improve their lifestyles. We also hold health classes
for employees aged 39 with the cooperation of external managerial dietitians, to verify theeffectiveness of these classes, which will lead to improve guidance for the following year.
To promote exercise habits, our Kyushu Factory (Saga Prefecture) has conducted a walking activity
using SAGATOCO, a walking application developed by Saga Prefecture. As a result of the effort, ourKyushu Factory was awarded the 2021 Saga Saiko Grand Prize in the health management category.
In the walking rally, we also visualize aspects such as team rankings based on participants' step
analysis, aiming to enhance their motivation to participate.
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. In addition, as part of measures to ensure thehealth of female employees, we conduct surveys targeting all female employees to understand theirneeds, and implement initiatives such as providing free health classes, conducting the free Equol
test, and offering company assistance programs for women's cancer screenings.
136

Main Action Items
Health classes for employees at age 39: Participation rate 100%
Walking activities: Participation rate 51.7%
Improvement of dietary habits: Participation rate 99.9%
Individual health guidance following regular medical checkups (including guidance to improveblood pressure and blood glucose levels)
SUMCO fall prevention exercises: Implementation rate 81.0%
Free Equol test (for those who wish)
Company assistance programs for women's cancer screenings

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

Assessment Item
Current smoker
Percentage of Employees with
Metabolic Syndrome
Exercising for 30 minutes or more
/ week

2018

2019

2020

2021

2022

Results

Results

Results

Results

Results

Medium-TermTargets(2025)

40.6%

38.2%

36.6%

31.9%

31.9%

20.0%

26.3%

26.9%

28.6%

29.4%

29.9%

25.0%

24.2%

25.4%

28.4%

27.6%

29.0%

35.0%

38.9%

32.6%

31.7%

33.5%

33.7%

24.0%

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 health and productivity
management help solving the ultimate goal of our health strategy map, which is to create highcreativity by ensuring a workforce that works with vitality, and to prevent the possibility of poor
health, injury or illness to reduce productivity. Therefore, we quantify comprehensive indicators tovisualize these status and apply each initiative to our health strategy map to achieve results bystrategically systematizing each initiative as a health investment. This allows us to conduct
evaluations each year, leading to the necessary measures being implemented in the future.

137

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 (positive perception and emotion for work), job
fulﬁllment, job satisfaction【SUMCO Health (Management) Strategy Map】
Health investment eﬀ ect
Health Investment

Indicators for HealthIndicators for Awarenessand Welln ess Pr ograms

and Behavior Change

Health investment
items related tovarious eﬀects（＊）
Stress checks

Improving work
environments

Mental healthseminars

Introduction of healthmanagement andpromotion system

Smoking cession
support

Health promoting

Health check-up

events(walking

Population

Health management

approach for
health promotion
High risk approachfor disease control

rallies,etc)

system(HCS) for
health care staﬀ

HMS for employee

and prevention

Increase participation for

Improvement of

improving work

ERI adjested generalenvironments

Promotion

Ma nagement

seminars

sleep deprivation

Increase par cipait on
rate for smoking
cessa onDecrease in the

Increase par cipait on
rate of events

Increase in thepercentage ofsmokers

working in SUMCO, shall have a high regard for human

Increase job
satisfaction

rights, ability a nd personality, and shall realize fair andPrevention of diseases

Decrease in the
propo on of
employee with highy
stressed

Individual Healthinfection control

guidance

Prevention ofdetailed examination
consultation

percentage of metabolic

Decrease in thevibrant

percentage of chronic

impact oflifestyle.

Increase usage ofsystem for

payed time oﬀ
systemmanagement.

Absenteeism

who improving theirfactors

Contrirbution to corporate value
per employee through health and productivity

resources.

Reduce thediseases

percentage of employee

cardiovascular risksociety through work.

The SUMCO Group pledges to improve operating proﬁt

human

promotion

Preven on forlifestyle-related

Increase in the

Improve obesity andthereby improve employee`QOL and contribute toand illness,diseases by health
Decrease in theregistrants

vaccinationleave

to unhealthCon trir bution to social value
The SUMCO group realizes an inclusive society andand secure

Increase in the

Payed time oﬀ

payment for facedecline due

Reduce theimpact ofPresenteeism

disorders

Increase in thepercentage of wellcontrolled chronic
diseases

number of employee`

COVID-19

masks, special sickPrevent
productivity

musculeskelel

utilization rates

and control for

Infection control,

Preven on for

who exercise regularly

Impovement ofdiverse way of working."

mental disorders

percentage of employee

Improve HCSThe SUMCO Group pledges to "maintain safe, healthy,
comfortable and appropriate workplaces for everybody

percentage ofrate of mental health

SUMCO CSR Poli cy

work engagement

work

Decrease in the

Increase participation

Empower Employee Awareness Proﬁt

Improve employee

Ensuring decent

syndrome

Relief system for

Infection prevention

an d Productivi ty

health risk

SUMCO Vision

Enhancing HealthI ndicators for Ultim ate Goal of Employeeʻ HealthPreven on forinfec ous and allergic
diseasesPrevention andMedication costs

Health care costs

reduction

reduction

control of emidemic
clusters in workplace

Secondary indicators

Indicators for Ultimate Goal

Health resources
Envir onmental health resources

Hu man health resources
Smoking cession support(Par cipait on rate)

Health promo ng events(Par cipait on rate)

Increase usage of payed
me off system

Improve obesity andcardiovascular risk factors

Increase par cipait on forimproving work
environments

Decrease in thepercentage of smokers

Certiﬁcation and qualifi cation（Registra on rate)

Increase in thepercentage of employee
who exercise regularly

Decrease in thepercentage of metabolic
syndrome

Improvement of ERI
adjested generak healthrisk

Increase in the propor onof employee who
improving their lifestyle.

Decrease in thepercentage of sleep
depriva on

Improve HCS
u lizait on rates

Impovement ofdetailed examina on
consulta on

Increased in the percentage
of well-controlled chronic
diseases

Philosophy and policies ofPreven on and contorolof emidemic clusters inworkplace

Decrease in the propo onof employee with highy
stressed.

Ensuring decent
work

Increase job
sa sfacti on

Reduce the impactof absenteeism

Reduce the impact
of presenteeism

Improve employee
work engagement

Infec on preven on andcontrol for COVID-19

Mental health seminars(Par cipait on rate)

HMS for employee

related to H ＆ＰＭ*

H ＆PM

Top management
commitment to H＆PM

Organizational climate
Implovement of WIN**

Inclusion Climate

Intangible environmental
health resources

H ＆PM*: Health and Productivity Management
WIN**:Scale of Mental Health Climate for Workplace Invigoration

138

Introduc on of healthmanegement andpromo on system

Tangible
environmental healthresources

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

Results of Activities 2. Work Engagement(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

139Creation of the SUMCO Health and Productivity Management Strategy Map
Supervising Industrial Physician
Minako Iyadomi

Measures related to the various selection based on the Health and Productivity Management
Strategy Map aim not only to solve our Company's challenges in health and productivity
management, but also to evaluate the effectiveness of health-related measures and contribute to
the improvement of the next measures. In the fiscal year 2023, we plan to evaluate the effects of
newly established workplace environment support system, strengthened smoking cessation support
measures, and newly established cancer screening subsidy system.

To ESG-oriented Investors

140

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 from fiscal year 2020 to 2022, there were activities we wereunable to perform 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 oncommunity-based social contribution activities going forward.

Participation in Local Cleaning Activities andEnvironmental Conservation Initiatives
SUMCO’s Chitose Plant has been working tomaintain a pleasant road environment forpedestrians by implementing 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 trashthat have 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.

Clean-up activities on the groundsof the Chitose Industrial Complex
141

(From fiscal year 2020 to 2022, it wascanceled due to the impact of COVID-19.)
In addition to cleanup activities along the
major arterial roads in the industrial park as amember of the “Hachimanpara Corporate
Council” made up of companies in theindustrial park, SUMCO's Yonezawa Plant also
participates in conservation and maintenanceactivities such as forest thinning andfertilization in Zusayama, Bansei-cho,Yonezawa City, which is located near theForest managment activities in Zusayama

plant. The forest management in Zusayama is

being carried out through the "Yamagata Bond Forest" agreement between SUMCO, Yamagata
Prefecture and the local territorial group, Zusayama Ward Assembly.
SUMCO’s Kyushu Factory supported the conservation activities of the horseshoe crab, theendangered species Class I, which inhabits the Makishima area of Imari City, Saga Prefecture.
Conservation activities are being conducted at the “Imari Bay horseshoe crab breeding area,” which
was designated a national natural monument in 2015, and continue to protect this precious
biological resource that is in danger of extinction.
At the Nagasaki Plant of SUMCO TECHXIV Corporation, many employees and their families
participated in the cleanup activities of the area around the plant (Omura Hi-Tech Park) in May 2022.
In August 2020, the Miyazaki Plant of SUMCO TECHXIV Corporation signed a managementagreement with Miyazaki City for Tsubakiyama Forest Park and planted new broadleaves and othertrees (sawtooth oak, konara oak, weeping cherry tree) to help protect the environment in the vast
41-hectare park.
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. Furthermore, 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 other municipalities 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. The
fiscal year 2023 marked the first time in three years that the event was held following the COVID-19
pandemic.
In September 2021, SUMCO Taiwan Technology Corporation supported and participated in theInternational Coastal Cleanup (ICC) program of the environmental organization Ocean Conservancy,
joining 80 local university students to pick up more than 800 kilograms of trash around Nanliaobeike
Park, Taiwan.

SUMCO Phoenix Corporation (USA) regularly conducts community cleaning activities called 'Litter
Patrol’. Litter Patrol is an initiative that employees voluntarily conduct patrols around the factory
premises and collect trash, with many employees participating each time.
142

Donation ceremony to the horseshoe crab conservation

Cleanup activities at Omura High-Tech Park

organization

International Coastal Cleanup at Taiwan

Tree-planting activities at Tsubakiyama Forest Park

Cleanup activities in the U.S. (Litter Patrol)143

Donation ceremony to the horseshoe crab conservation
organization

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, aiming
environmental beautification.
At the SUMCO Support Corporation*, we
conduct "Flower Project" initiatives including
the voluntary creation of flower beds andplanting of seeds and seedlings, thereby
delighting visitors to the area around theGreening promotion activities at the Chitose Plant

company and employees alike.
* SUMCO Support Corporation is a special subsidiary company of SUMCO that was established withthe purpose of employing persons with disabilities.

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 toprepare the team for fire disasters at nearby
welfare institutions.

Emergency drill at a welfare institution

144

Interaction with local educational institutions
At the Nagasaki Plant of SUMCO TECHXIV Corporation, we have maintained a relationship with local
high schools since the establishment of the plant. Responding to requests from high schools, wesend employees to give lectures on semiconductors.
Each year, PT. SUMCO Indonesia works with local high schools to operate apprenticeship programs
that run for approximately 3 months, giving students the opportunity to develop their future careers.

Scene from the apprenticeship program

Scene from the apprenticeship program

Participation and Sponsorship of Sports Events
SUMCO participates in and sponsors local sports events. The SUMCO
Kyushu Factory co-sponsors the IMARI HALF-MARATHON every year.
In the 2023 event, over 2,000 participants from around Japan
entered and ran through the early spring Imari Road.
Additionally, the SUMCO Imari Road Relay Race Team fielded

Imari Road Relay Race Team ﬁelded by the Kyushu Factory took partin the 75th Tozai Matsuura Relay Race Competition (sponsored by

Saga Shimbun Co.,Ltd) held in January 29 2023, and achieved their
15th victory after a two-tournament hiatus. This Tozai Matsuura
Relay Race Competition is an event with a long tradition that

contributes to the revitalization of the region by attracting numerous
teams from the local community and workplaces.
The Nagasaki Plant of SUMCO TECHXIV Corporation also actively
sponsors the organization and operation of local sports events.

145

75th Tozai Matsuura Relay Race
Competition (provided by Saga
Shimbun Co.,Ltd)

Activities with Non-Proﬁt Organizations, etc.
SUMCO donates total amount of 610,000 yen to Seacare and the Japan Heart Foundation, in supportof the work done by these NPOs. Furthermore, we also donate to organizations such as the National
Center for Child Health and Development and the Little Women Project, in support of their activities.
SUMCOʼs Chitose Plant (Chitose-shi, Hokkaido) supplies an emergency stock of food to the "FoodBank Network Mottainaiwa Chitose," and Miyazaki Plant of SUMCO TECHXIV Corporation provides an
emergency stock of food to the "Children's Cafeteria Network Support Project" being promoted byMiyazaki City. We will continue our eﬀorts to support the activities.
SUMCO Phoenix Corporation (USA) planned donation and support activities in 2022 to provide
humanitarian aid to those aﬀected by the war in Ukraine, support students in need, and organize
blood donation drives for local blood banks. We are actively promoting company donations andsupporting activities by soliciting donations from employees.

SUMCO Europe Sales Plc has a positive impact on the local community by way of helping theactivities of local charity organisations through donations. In 2022, SUMCO Europe Sales Plc took
part as a volunteer in WrapUp London, an activity to sort and deliver thousands of used coats andjackets to homeless shelters, refugee centers, and children's support centers. Additionally, SUMCO
Europe Sales Plc donated £1,500 to WrapUp London to help with the costs of delivering those
clothes, and £500 to Trussell Trust, which operates a food bank, to support their impactful activities.
Furthermore, considering the resumption of business travel for their employees in 2022, thecompany oﬀset approximately 30,000kg of CO2 through Atmosfair, a provider of funding for various
projects aimed at reducing and removing CO2 emissions worldwide.

Clothing donation initiative in the UK（WrapUp London）

Clothing donation initiative in the
UK（WrapUp London）

146

Contribution to Society through R&D Activities
SUMCO is a leading supplier of high-quality silicon wafers for power semiconductors, contributing to
reducing emissions of CO2, which is GHG. We are actively engaged in joint research with Kyushu
Institute of Technology, renowned for its research in power semiconductors, as well as participating
in industry-government- academia collaboration projects focusing on power semiconductors. As aresult, SUMCO is advancing the high-quality improvement of wafers while leveraging theachievements and knowledge obtained through research and development activities with various
companies, universities, and research institutions. We are contributing to the resolution of social
challenges such as preventing global warming and utilizing electricity eﬀectively through proactive
industry-government-academia collaboration activities aimed at further improving low-carbon andenergy-saving technologies.

Regional Revitalization and Community Support Activities
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. (The event was canceled in 2021 and 2022 due to the COVID-19
pandemic, and resumed in 2023 after a 3-year hiatus.)

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 as a means of contributing to local revitalization.(Although it was the ﬁrst time the event washeld in 3 years in ﬁscal year 2022, we chose not to participate.)

Additionally, SUMCOʼs JSQ Division supports activities of the “Barajima Kanto Group,” which islocated in Barajima, Akita and headed by a SUMCO Employee. The group participates by performingin the Akita Kanto Festival every year, where they put on energetic performances.

PT. SUMCO Indonesia actively participates in local contribution activities such as a program toprovide food assistance to the neighboring indigent and support activities for orphans during Eid alAdha Holiday* every year. Additionally, PT. SUMCO Indonesia makes donations to the local

community for infrastructure development in the area surrounding the plant, such as road paving
and waterway construction.
* Islamic holidays

147

Participates in an annual event, the "Imari Autumn
Festival–Imari Dance in All" (2019)
Producing snow lanterns at the Uesugi Snow
Lantern Festival

Performance by the JSQ Division

Support activities for orphans at PT. SUMCO Indonesia 1

Support activities for orphans at PT. SUMCO Indonesia 2

Donation presentation to the local community by PT.

SUMCO Indonesia

To ESG-oriented Investors

148

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

2. 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 or work procedures.
2. In the event of any work-related accidents, we will collectively and thoroughly analyze the root
cause and implement measures to prevent their recurrence.
3. We will collectively and thoroughly strive to create an open workplace environment, as well as tomaintain and promote their mental and physical health and to prevent occupational illnesses.
4. We will collectively and thoroughly engage in raising awareness of traffic consideration andpromote traffic safety initiatives as models for society.

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 voluntary healthpromotion by each employee, as well as implementing active organizational initiatives.

149

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
their work 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.

150

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.

151

Social Data (personnel)
Number of Employees

item

Employee

Number of senior
management

Number of senior
management

Number of directors
on board

Newly Hired
Employees

Average years
employed

Value

Segment

Remarks

Total workfoce

9,189

Consolidated

As of Dec. 31, 2022

Men

8,334

Consolidated

Women

855

Consolidated

Percentage ofwomen employees

9.3%

Consolidated

Total Number

817

Consolidated

Men

760

Consolidated

Women

57

Consolidated

Percentage ofwomen in senior
management

7.0%

Consolidated

Total Number

512

SUMCO*Men

501

SUMCO*

Women

11

SUMCO*

Percentage ofwomen in senior
management

2.1%

SUMCO*

Total directors

10

SUMCO

Men

9

SUMCO

Women

1

SUMCO

10.0%

SUMCO

Total Number

98

SUMCO

Men

72

SUMCO

Women

26

SUMCO

Percentage ofwomen employees
in new hires

26.5%

SUMCO

Men

15.8

SUMCO

Women

12.4

SUMCO

3.4 years

SUMCO

Percentage ofwomen directors
on the board

Diﬀerence inaverage

As of Dec. 31, 2022

As of Dec. 31, 2022

As of Dec. 31, 2022

As of 2022

* Total ﬁgures include the number of Sumco employees assigned to other companies and exclude
secondees to Sumco Corporation from other companies
152

Site Data (2022 results)
2021 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

Scope of businessand manufacture ofsilicon wafers

Examining
Status of acquisition of
ISO 14001:2015

organization
Date ofacquisition

certification

Date ofrenewalAir

Japan Quality

Kyushu Factory(Kubara)Kyushu Factory (Saga)

Design, development

Design, development

monocrystalline siliconmonocrystalline siliconwaferswafersand manufacture ofingots and silicon
Japan Quality

and manufacture ofingots and silicon
Japan Quality

Assurance Organization

Assurance Organization

Assurance Organization

January 11, 1999

January 11, 1999

January 11, 1999

January 11, 2026

January 11, 2026

January 11, 2026

Measurement results maximum value (regulation value)

Nitrogen oxides (NOx)ppm

Boiler 81 (150)

Boiler 69 (150)/

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

Boiler ND (1.15)/

Soot and dust

g/m3N

/

/

/

153

MeasureRegulation

Water

value

ment

result(MaximumMeasureRegulation
value

value)

Biological oxygen

ment

result(MaximumMeasureRegulation
value

value)

ment

result(Maximumvalue)

mg/ℓ

/

/

/

/

10

9

mg/ℓ

30

12

30

6

/

/

Suspended solids (SS)

mg/ℓ

30

15

30

9

25

8

N-hexane extract

mg/ℓ

5

ND

5

ND

3

ND

Iodine consumption

mg/ℓ

/

/

/

/

/

/

mg/ℓ

8

5.6

8

4.1

3

1.3

80

14

80

14

100

14

demand (BOD*1)
Chemical oxygen

demand (COD*2)

Fluorine and its
compounds

Ammoniac nitrogen

mg/ℓ

Nitrate nitrogen

mg/ℓ

Nitrite-nitrogen

mg/ℓ

Nitrogen content (T-N)

mg/ℓ

120

34

120

19

60

18

Chromium content (T-Cr) mg/ℓ

0.2

ND

0.2

ND

0.2

ND

mg/ℓ

12

0.5

12

0.1

8

0.7

mg/ℓ

0.05

ND

0.05

ND

0.1

ND

mg/ℓ

0.1

ND

0.1

ND

0.1

ND

Phosphorus content (TP)Arsenic
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

154

Noda Office/Yonezawa Plant
Noda Office

Yonezawa Plant

Manufacture of silicon wafers

Design, development andmanufacture of monocrystalline
silicon ingots

Name of business site/plant
Scope of business

Status of acquisition of
ISO 14001:2015
certiﬁcation

Examiningorganization

Japan Quality Assurance
Organization

Japan Quality Assurance
Organization

Date ofacquisition

January 11, 1999

January 11, 1999

Date ofrenewalJanuary 11, 2026

January 11, 2026

Measurement results maximum value (regulation value)

Air
Nitrogen oxides (NOx)ppm

Boiler 78 (260)/

Sulfur oxides (SOx)m3N/hBoiler 0.02 (0.32)/

Soot and dust

g/m3N

Boiler 0.0 (0.3)

/

Water

Regulation value

Measurement
result (Maximum
value)

Regulation value

Measurement
result (Maximum
value)

Biological oxygen
demand (BOD)

mg/ℓ

25

15

600

13

Chemical oxygen
demand (COD)

mg/ℓ

20*1

14

/

/

Suspended solids (SS)

mg/ℓ

50

10

600

56

N-hexane extract

mg/ℓ

3

ND

5

1

Iodine consumption

mg/ℓ

/

/

220

16

Fluorine and its
compounds

mg/ℓ

8

6.9

8*2

1.3

Ammoniac nitrogen

mg/ℓ

Nitrate nitrogen

mg/ℓ

100

10

380

142

Nitrite-nitrogen

mg/ℓ

Nitrogen content (T-N)

mg/ℓ

30

19

/

/

Chromium content (T-Cr)

mg/ℓ

1

ND

0.5

ND

Phosphorus content (T-P)

mg/ℓ

2

0.2

/

/

Arsenic

mg/ℓ

0.05

ND

0.1

ND

Trichloroethylene

mg/ℓ

0.1

ND

/

/

*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.
155

Chitose Plant/JSQ Division

Name of business site/plant

Chitose Plant

JSQ Division

Design, development andmanufacture of silicon wafers

Design, development andmanufacture of quartz crucibles

Examiningorganization

Japan Quality Assurance
Organization

Japan Quality Assurance
Organization

Date ofacquisition

January 11, 1999

January 11, 1999

Date ofrenewalJanuary 11, 2026

January 11, 2026

Scope of business

Status of acquisition of
ISO 14001:2015
certiﬁcation

Air

Measurement results maximum value (regulation value)

Nitrogen oxides (NOx)

ppm

/

/

Sulfur oxides (SOx)

m3N/h

/

/

Soot and dust

g/m3N

/

Firing furnace 0.08 (0.2)

Water

Regulation value

Measurement
result (Maximum
value)

Regulation value

Measurement
result (Maximum
value)

Biological oxygen
demand (BOD)

mg/ℓ

600

6

160

17

Chemical oxygen
demand (COD)

mg/ℓ

/

/

/

/

Suspended solids (SS)

mg/ℓ

600

14

200

30

N-hexane extract

mg/ℓ

5

ND

5

ND

Iodine consumption

mg/ℓ

/

/

/

/

Fluorine and its
compounds

mg/ℓ

8*

3.8

8

0.2

Ammoniac nitrogen

mg/ℓ

Nitrate nitrogen

mg/ℓ

/

/

100

4

Nitrite-nitrogen

mg/ℓ

Nitrogen content (T-N)

mg/ℓ

/

/

120

3

Chromium content (T-Cr)

mg/ℓ

2

ND

2

ND

Phosphorus content (T-P)

mg/ℓ

/

/

16

0.1

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.
156

SUMCO TECHXIV Corporation Nagasaki Plant/SUMCO TECHXIV
Corporation Miyazaki Plant

SUMCO TECHXIV Corporation (STC)
Nagasaki Plant

SUMCO TECHXIV Corporation (STC)
Miyazaki Plant

Design, development andmanufacture of monocrystalline
silicon ingots and silicon wafers

Design, development andmanufacture of monocrystalline
silicon ingots and silicon wafers

Examiningorganization

Japan Quality Assurance
Organization

Japan Quality Assurance
Organization

Date ofacquisition

January 11, 1999

January 11, 1999

Date ofrenewalJanuary 11, 2026

January 11, 2026

Name of business site/plant
Scope of business

Status of acquisition of
ISO 14001:2015
certiﬁcation

Air

Measurement results maximum value (regulation value)

Nitrogen oxides (NOx)ppm

Boiler 67 (260)

Boiler 58 (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

157

WaterRegulation value

Measurement
resultRegulation value

Measurement
resultBiological oxygen
demand (BOD)

mg/ℓ

600

58

25

6

Chemical oxygen
demand (COD)

mg/ℓ

/

/

/

/

Suspended solids (SS)

mg/ℓ

600

20

30

2

N-hexane extract

mg/ℓ

5

0.9

5

ND

Iodine consumption

mg/ℓ

/

/

/

/

Fluorine and its
compounds

mg/ℓ

15*1

10.8

8

1.0

Ammoniac nitrogen

mg/ℓ

Nitrate nitrogen

mg/ℓ

380

56

100

4

Nitrite-nitrogen

mg/ℓ

Nitrogen content (T-N)

mg/ℓ

240

88

120

3

Chromium content (T-Cr)

mg/ℓ

2

ND

0.2

ND

Phosphorus content (T-P)

mg/ℓ

32

0.2

16

0.0

Arsenic

mg/ℓ

0.1

0.002

/

/

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).

158

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

SUMCO Phoenix Corporation (SPX)
Phoenix Plant

Design, development andmanufacture of silicon wafers

Design, development andmanufacture of monocrystalline
silicon ingots and silicon wafers

Examiningorganization

DNV

DNV

Date ofacquisition

June 19, 2000

June 19, 2000

Date ofrenewalJune 30, 2024

June 30, 2024

Name of business site/plant
Scope of business

Status of acquisition of
ISO 14001:2015
certiﬁcation

Air

Measurement results maximum value (regulation value)

Nitrogen oxides (NOx)ton/y1.788 (8.87)

13.6 (24.6)

Sulfur oxides (SOx)ton/y0.016 (0.351)

0.44 (1.25)

PM10 (Particulate
Matter)ton/y

0.137 (1.515)

0.73 (2.5)

Water

Regulation value

result*Regulation value

Measurement
result (Maximum
value)

Measurement

Biological oxygen
demand (BOD)

mg/ℓ

/

/

/

/

Chemical oxygen
demand (COD)

mg/ℓ

/

/

/

/

Arsenic

mg/ℓ

2.09

/

0.13

0.01

Cadmium

mg/ℓ

/

/

0.047

0.002

Copper

mg/ℓ

/

/

1.5

0.04

Cyanide

mg/ℓ

0.5

/

2

0.01

Fluorine and its
compounds

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

0.05

Suspended solids (SS)

mg/ℓ

/

/

/

/

* At the Albuquerque Plant, only pH and water ﬂow rate measurements are required, and the City of
Albuquerque periodically takes wastewater measurements.
159

PT. SUMCO Indonesia、FORMOSA SUMCO TECHNOLOGY CORPORATIONName of business site/plant

Design, development andScope of business

manufacture of silicon wafers
Examining

Status of acquisition of
ISO 14001:2015
certification

organization
Date ofacquisition
Date ofrenewalAir
NitrogenoxidesIndonesia

PT. SUMCO Indonesia

FORMOSASUMCOTECHNOLOGYFORMOSA SUMCO TECHNOLOGYCORPORATION

Design, development andmanufacture of monocrystalline
silicon ingots and silicon wafers

SGS

Lloyd's Register

April 22, 2005

May 13, 2019

April 22, 2023

May 13, 2025

Measurement results maximum

Measurement results maximum

value (regulation value)

value (regulation value)

mg/m3

ton/y

ND（1000）

21.3（40.5）

mg/m3

ton/y

ND（800）／(Particulate mg/m3

ton/y

1.7（350）

1.33（1.82）(NOx)
Sulfuroxides(SOx)
PM10

Matter)160

WaterMeasurement

Measurement

Regulation value

result (Maximum

Regulation value

result (Maximum

mg/ℓ

200

57

/

/

mg/ℓ

400

191

100

13

Arsenic

mg/ℓ

0.2

ND

0.35

ND

Cadmium

mg/ℓ

0.1

ND

0.02

ND

Copper

mg/ℓ

4

ND

1.5

0.0

Cyanide

mg/ℓ

0.1

ND

1

ND

mg/ℓ

4

1.4

15

2.8

Lead

mg/ℓ

0.2

ND

0.5

ND

Mercury

mg/ℓ

0.004

0.001

0.005

ND

Molybdenum

mg/ℓ

/

/

0.6

0.0

Selenium

mg/ℓ

0.1

ND

/

/

Silver

mg/ℓ

/

/

/

/

Zinc

mg/ℓ

10

0.1

3.5

0.1

Suspended solids (SS)

mg/ℓ

400

11

30

3

Biological oxygen
demand (BOD)

Chemical oxygen
demand (COD)

Fluorine and its
compounds

value)* At PT.SUMCO Indonesia, wastewater is drained to the sewerage.

value)* At FORMOSA SUMCO TECHNOLOGY CORPORATION, wastewater is drained into the ocean.

161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