Content
Letter from Our President………...…………………………………………………………………. O4
About Our CSR Report………………………………………………………………….……..…….. O8
Report Profile & Self Declaration……………………………………………...……………………..

8

Contact Information…………………………………………….………………………………….…..

8

Report Boundary…………………………………………………………………………….…………..

9

Report Scope…………………………………………………………………………….………………

9

Our Company………………………………………………………………………………….……… O12
Governance at JSR Micro………………………………………………………………...…………..

13

Corporate Social Responsibility………………………………………………………………..……

14

Quality at JSR Micro………………………………………………………………………...…………..

14

Ethics & Code of Conduct…………………………………………………………………………….

15

United Nations Global Compact…………………………………………………………………….

15

Our Products…………………………………………………………………………………….. O16
Life Sciences………………………………………………………………………….………………….

16

Electronic Materials……………………………………………………………………………………

17

Energy & Environment……………………………………………………………………................

17

Our Stakeholders …………………………………………………………………………………….. O18
Methods of Stakeholder Engagement……………………………………………………………...

18

Our People……………………………………………………………………………………………… O20
A Diverse Workplace…………………………………………………………………………………...

20

Affirmative Action Plan………………………………………………………………………………...

21

Employee Satisfaction………………………………………………………………………………….

21

Hiring……………………………………………………………………………………………………….

22

Turnover…………………………………………………………………………………………………...

22

Training & Development……………………………………………………………………………….

23

Performance Management…………………………………………………………………………..

23

Employee Benefits ……………………………………………………………………………………

24

Internship Program……………………………………………………………………………………...

24

Wellness at Work & Home……………………………………………………………………………..

25

Our Community………………………………………………………………………….……………. O26
Community Outreach: Giving………………………………………………………………………..

26

Community Outreach: Volunteering………………………………………………………………..

27

Community Outreach: Coordination…………………………….…………………………………

27

Our Customers and Suppliers…………………………….………………………………………. O28
Innovation One-on-One…………………………….…………………………………………………

28

Supply Chain Management and EICC…………………………….……………………………….

28

JSR Micro Wins Intel SCQI Awards…………………………….……………………………………...

29

Our Environment……………………….…………………………………….……………………….. O30
Environmental Goals & Challenges…………………………………………………………………

31

Climate Change………………………………………………………………………….…………... O32
Managing our Energy & Carbon Footprint………………………………………………………...

32

Improving Energy Efficiency & Conservation……………………………………………………...

33

Approaches to Product Delivery…………………………………………………………………….

33

Supporting Greener Commuting…………………………………………………………………….

34

Water………………………………………………………………………….………………………….. O35
Materials & Waste……………………………………………………………………………………. O36
Reducing Non-Hazardous Waste…...……………………………………………………………….

37

Reducing Hazardous Waste….……………………………………………………………………….

37

Safety…………………………………………………………...………………………………………... O38
Safety Training & Drills………………………………………………………………………...….……..

38

Customer Safety………………………………………………………………………………..……….

39

Product Labeling & Hazard Communication……………….……………...……………………..

39

Our Proactive Approach to Workplace Safety…………………………………………………...

40

EH&S Committee…………………………………………………………………………...…….……..

40

Suggestion Box & Near-Miss Log………………………………………………….…….…………...

40

Improving Ergonomics………………………………………………………………………….………

41

Behavior-Based Safety Program…………………………………………………………...….……..

41

GRI Content Index ……………………………………………………………..…………………….. O42
Third-Party GRI Application Level Check…….…………………………………………..………...

45

End Notes…………………………………………………………………………………………………

46

Acknowledgement…………………………………………………..…………………………………

47

3

Letter from our President
JSR Micro, Inc.

is pleased to publish ourinaugural Corporate Social Responsibility (CSR)
Report. Although this is our first report, we havebeen integrating sustainability into our business
operations for many years, and our CSR program
expands upon our corporate traditions of quality,
efficiency and safety. JSR Micro views sustainability
as an opportunity to make our operations more
efficient, effective and meaningful, as well as ameans of growing our business. Faced with global
challenges such as climate change, resource
depletion and unstable economies, we haveembraced the challenge to evolve and affirm our
role

as

a

technology

andbusinessleadercommitted to making a difference.

performance in research and development (R&D)
andemerging

technologies.

Althoughselectprograms experienced setbacks in fiscal year 2011,
we

were

very

satisfied

with

our

overall

performance, including our recent entry into thelifesciences

andenergyandenvironment

markets.
All of our enterprises align with the mission of ourcorporate parent, JSR Corporation: “to create
value through materials to enrich society, people
and the environment.” The JSR Group is a memberof the United Nations Global Compact (UNGC)
and, as a member of the JSR Group, JSR Microrespects the UNGC’s principles and is “dedicatedtoactingresponsibly

in

the

international

As a chemical manufacturer, we are sensitive to ourincreasing environmental responsibilities and ourobligation to practice the principles of sustainability
so as to have a positive impact on our customers,
suppliers,
neighbors.

employees,
Wesemiconductorbusiness

operateindustry,

partners

primarily

which

is

a

in

and
the

mature,innovation-driven market characterized by highcompetition and consolidation. JSR Micro is at theforefront of new development such as extreme
ultraviolet (EUV) lithography and directed selfassembly (DSA) patterning. Our CSR programprovides us with an opportunity to drive innovation
in

these

and

other

high-tech

areas

while

maintaining our competitive advantage.
It is always a challenge to stay competitive andmaintainourpositionasamarketleader.

Continuous learning is the key to staying innovative.
To ensure that learning is embedded in our culture,
we track training hours and target employee
development on our balanced scorecard. We also
have

implemented

metrics

to

track

our

Sustainability is the balance of resources: environmental, economic andhuman. It is recognition of the fact that all of us are part of a universalorganism, interdependent on each other’s responsible utilization andcontribution of resources in equal measure.

4

In addition, JSR Micro works closely with our
corporate parent to achieve its E2 Initiative®, ahybridof

eco-innovation

andenergymanagement, with the dual goals of green
business development and persistently efficientand sustainable business operations.
Although JSR Micro is a small subsidiary of JSR
Corporation,

which

has

globaloperations

throughout Asia, Europe and North America, we
contribute in significant ways.

We are uniquely

positioned to leverage our Silicon Valley location
and relationships with tech giants to ensure thatthe drive toward sustainability and ethical businesspractices in the US is closely aligned with ourJapanese parent’s vision and goals. In this sense,
we are a powerful liaison, ensuring an ongoing
integration of the best ideas, practices andleadership opportunities.

Key Performance Goals & Status
Category

Due

FY11 Status

2012–2014

On track

Develop CSR supplier management program.

2014

On track

Publish biennial CSR reports beginning in2013.

2013 and 2015

Achieved(1st report)

Reduce key impacts compared to FY08
baseline: Greenhouse gas emissions by 10%
 Water use by 35%
 Non-hazardous waste by 25%
 Hazardous waste by 45%

2018

On track

Identify and implement new environmental
projects.

2018

On track

Transition to the Globally Harmonized Systemof Classification and Labeling of Chemicals.

2014

On track

Invest in employee growth by increasing
training hours per employee by 10% as compared to FY11 baseline.

2014

On track

2012–2014

On track

Goal
Develop CSR program.

CSR

EnvironmentHR

Engage employees in our CSR program
through workshops and suggestion andaward programs.

5

JSR Micro’s success has been fueled by our

Still, we must continue to meet the challenge of

unrelenting pursuit of quality, safety and innovation.

maintaining these efficiencies as we expand our

We have a history of continuous improvement withfacilities and increase production volumes over therobust management systems in place to integrate

next five years.

sustainability values more fully within our operations.
Employee safety is a key core value of JSR Micro.
Our quality management system has been ISO 9001

Hence, wehavecertified since 1998 (currently ISO 9001:2008) andinjuries as an ongoing challenge and implemented

has evolved and improved year after year since its

numerous targeted measures to prevent theseinception. In recognition of our commitment toinjuries while also educating our people in ergo-safe

excellence and quality, Intel selected JSR Micro aspractices. As part of our safety management

the sole photoresist supplier to win its prestigious

system,Supplier Continuous Quality Improvement Award inHarmonized System of Classification and Labelingboth reporting years 2010 and 2011.

of Chemicals with a target completion date of

we

are

identified ergonomic-relatedtransitioning

to

the

Globally

2014.
To ensure a safe and environmentally responsible
workplace,weestablished

ourEnvironmental,

Building

on

and
leads

unifying
a

our

new

efforts,

CSR

Human

Health and Safety (EH&S) Committee 12 years ago,

Resources

team

with

which supported efforts to achieve ISO 14001:2004

representation from diverse departments including

certification of our environmental management

Executive, Quality, R&D, EH&S, Sales, Marketing andsystem and OHSAS 18001 certification of our health

HR. In addition, we have added CSR objectives andand safety management system in 2010. JSR Micromeasures to our balanced scorecard. We realize

set and achieved ambitious reduction targets withthat this inaugural CSR report is a critical step in our

the implementation of the environmental program

journey toward sustainability. While it discusses ourin 2008.

recent activities and achievements, going forward
we need to identify new initiatives and set new

Our reduction initiatives included investment ingoals. This will be particularly challenging as weenergy-efficienthaveheatingandcoolingsystemupgrades, and our environmental performance has

alwaysstrivento

optimizesafetyandefficiency while reducing injuries and waste.

already met goals established for 2018.

6

Our

key

customers

areexpandingtheir volunteering

andgivingthroughout

our

local

sustainability efforts by requiring best practices communities.
throughout the supply chain. We have partneredwith them in targeting compliance with the Our long history of sustainability-related practices
Electronic Industry Citizenship Coalition(EICC) and achievements provides a solid foundation on

standards and implementation of a CSR supplier which to build as we move into the future withmanagement system based on these guidelines by confidence

andcuriosity.

We

inviteyou,

our

2014. As a chemical company, we accept our stakeholders, to read about our efforts and to share
responsibility to reduce the use of hazardous your suggestions on how we can continue tosubstances and explore opportunities to adopt improve and earn your respect as a leader ingreen chemistry.

sustainability.

Our people have roots all over the globe, but we Sincerely,
call Silicon Valley home. All of us draw on our
diverse heritage to inform and influence theculturallandscapechemicaloperators,

of

our

company,lithography

wheretechnicians,

process engineers and research scientists areworking together to lead technological innovationin the 21st century and beyond. While we are Eric R. Johnson
proud of our work and accomplishments as President
technology professionals, we also want to set good JSR Micro, Inc.
examples for our family and friends, not only in theworkplace,

but

in

our

activeinvolvement,7About our CSR Report
Report Profile & Self
Declaration

Contact Information
We

This is JSR Micro’s first corporate social responsibility
report. The report period is fiscal year 2011 (April 1,
2011, to March 31, 2012). In addition, we report
relevant data, activities and achievements fromprevious years to provide perspective and todemonstrate performance improvement. Goingforward, we intend to publish our report every two
years, in the first quarter of the fiscal year following
the report period.
The

report follows

welcomeyourquestionsandcomments

concerning this report. Your ideas and suggestions
will help drive improvements in future CSR reports.
For more information, please contact us at:
Main Headquarters:
JSR Micro, Inc.
1280 N. Mathilda Ave.
Sunnyvale, CA 94089
United States

the Sustainability Reporting

Guidelines, Version 3.1, established by the Global
Reporting Initiative (GRI), and has been third-party
checked by Concept Green LLC as Application
Level C. The GRI Content Index detailing specificTel: (408) 543-8800
Fax: (408) 543-8873
Email: sustainability@jsrmicro.com

disclosures and the GRI Application Level Check
Statement are at the end of the report.
JSR Micro did not seek external assurance for thisfirst report. However, to the best of our ability, we
have confirmed that all information in the report isaccurately

disclosedandpresented.

Allenvironmental, health and safety data is monitored

Please visit the GRI website atwww.globalreporting.org for more
information about the GRI standards
for sustainability reporting.

and measured through our ISO 14001:2004 and
OHSAS 18001 certified management systems. Thesecertifications are subject to yearly review by
independent external auditors.

8

Report Boundary

Report Scope

JSR Micro’s manufacturing plant and administrativeThis

offices are headquartered in Sunnyvale, California.

economic, environmental and social impacts. To

The company is one of many subsidiaries of JSR

determine the content for our first report, the CSR

Corporation, our parent company headquartered

team conducted a materiality assessment. Theyin Tokyo, Japan. Although our parent company

identified potential stakeholders who affect and/or

publishes annual CSR reports, its reports do not

are affected by our activities and who would havedetaila

JSR

Micro’ssocialandenvironmental

reportsignificant

addresses

interest

JSR

in

Micro’sthissignificant

report.

Selected

performance. The boundary of this sustainability

stakeholder groups include our business partners,

report is limited solely to JSR Micro, Inc., and our US-

employees, customers, suppliers and neighboring

based operations. Our company does not own,

companies. These are also the expected readers ofcontrol or influence any other divisions, subsidiaries,

the report. The team conducted a survey with theseleased facilities or joint ventures managed by our

stakeholders to gain feedback on key CSR topics,

parent company.

expectations and issues relevant to our report. The
survey proved to be invaluable in helping us to

The

data

reported

environmental

identify key topics, indicators and trends. We also

performance indicators is limited to the Sunnyvale

discussed CSR and sustainability-related topics withsite, where the production processes, research andall stakeholders willing to speak with us.

development,
operations

and

for

laboratory
the

the

testing,majorityofwarehousebusiness

Topics critical to JSR Micro’s business success wereoperations take place. The boundary for theourprioritized and then considered with all stakeholder

economic and social performance indicators is thesurvey data, input from discussions and the results ofwhole of JSR Micro, which comprises the Sunnyvale

an internal brainstorming process. The team scored,

headquarters and our sales offices throughout theranked and plotted the topics on a materiality

United States. Aside from those mentioned above,

matrix, as shown. We set our materiality threshold as

there are no other limitations on the boundary of

those topics above medium-high impact on thethe report.

company or importance to stakeholders. The reportdiscusses these high-priority topics, which covereconomic, environmental and social areas of
performance and impact. However, as a privately
heldcompany,

JSR

Micro

does

not

disclosefinancials.

Materiality as defined in the GRI Sustainability Reporting Guidelines: The
information in a report should cover topics and indicators that reflect theorganization’s significant economic, environmental and social impacts; orthat would substantively influence the assessments and decisions ofstakeholders. Materiality is the threshold at which topics or indicators
become sufficiently important that they should be reported.

9Materiality Matrix

10Glossary of High-Priority Topics
Priority Topics

Description

Compliance

Adherence with laws and regulations.

Corruption

Programs to educate employees about their responsibility to conduct thecompany’s business ethically and legally.

Customer Health &Compliance to standards, codes and regulations concerning health and safety

Safetyimpacts of products to prevent hazards to customers.

*Economic Performance Indicators leading to an increase in productive capacity and success in areas
related to overall financial and market strength.
Employee Health &Programs aimed at protecting the safety, health and welfare of employees, andSafetyfostering a safe and healthy work environment. This topic also includes goals for
reducing employee injuries and occupational hazards.

Employee Turnover

Efforts to keep the number of workers that have to be replaced in a given time
period low compared to the average number of workers.

EnergyEfforts to minimize consumption of energy.

Energy-Efficient Products Issues relating to development of products that can significantly reduce energy
consumption.
*Intellectual Property

Measures to protect JSR Micro’s patents, trademarks or copyrights.

ISO14001/OHSAS18001

Compliance to policies and requirements of environmental, health and safety
management standards, including efforts and goals to identify EHS aspects andcontinuously improve and minimize impacts.

Local Community

Programs relating to local community engagement.

Product labeling

Issues concerning the labeling of products to comply with regulatory requirements
and to give customers access to complete information about products toguarantee safe use.

Quality

Continuously exceeding customer expectations about our products and services.

Supply Chain

Programs aimed at managing the social and environmental impacts of ourManagement

suppliers.

Talent Retention

Efforts to retain employees by investing in JSR Micro’s top talent through rewards
programs, benefits and learning and development opportunities.

Training & Education

Programs aimed at creating a learning organization through employee
development plans and other engagement efforts.

Waste

Goals and action plans for reduction of both hazardous and non-hazardous
waste.

Water

Measures to conserve water and action plans to reduce water usage inmanufacturing operations.

11Our Company

Established in 1990, JSR Micro is a Silicon Valley-

This collaborative approach enables us to synergize

based materials manufacturer, operating as aour mutual passion for technological advancement

wholly owned subsidiary of our Japanese parent

and materials innovation.

company, JSR Corporation. JSR Micro employs
approximately 140 employees; most work at ourThrough one such joint research agreement, we

Sunnyvalearecollaborate with world-class scientists at IBM’s

strategically positioned throughout the United States

Almaden Research Center to conduct researchinConnecticut,

and development into directed self-assembly (DSA)

York,

technologies.

headquarters,

Southern

California,

Massachusetts,

New

and

about

Arizona,

Jersey,

New

10%

North

Carolina, Oregon, Texas and Virginia.

enableJSR Micro’s core business is the manufacture andResearchersarestudying

DSA

materials and new chemistries to accelerate andsmallerlithographic

featuresforIC

manufacturing.

distribution of high-performance photoresists toleading semiconductor manufacturers throughout

In our Emerging Technologies group, we are

the US and – through our parent and sister

providing a lithium ion capacitor (LIC) energy

companies – the world. We work closely with ourstorage device. Our parent company has signed acustomers to innovate, manufacture and deliverjointelectronic materials, hi-tech polymers, lithium ion

Metering LLC, a renewable energy company incapacitors and other materials that meet the mostTexas that produces meters to control, manage andexacting requirements in the industry.

conserve water usage. JSR Micro’s LICs are being

development

agreement

withCapstonedesigned into Capstone’s next generation smart
JSR Micro also collaborates with industry leaders on

water meters.

numerous R&D projects through joint research
agreements and joint development agreements.

12Governance at JSR Micro
JSR Micro is a privately owned company: 78% is owned
by JSR Corporation in Japan and 22% is owned by JSR

Shareholders

Micro N.V. in Belgium. The board of directors in the US is

JSR Corporation - 78% Ownership
JSR Micro N.V. – 22% Ownership

JSR Micro’s highest-ranking governing body. Four of theboard’s seven members serve on JSR Micro’s executive
team, and the others are directors at the corporate
office in Japan. JSR Micro’s president, Eric Johnson,

Board of Directors

serves as chairman of the board, which oversees JSR

4 JSR Micro directors
3 JSR Corporation directors

Micro’s Executive Committee as it develops andexecutes business strategy. The Executive Committee
runs the company on a daily basis, but works closely

Executive Teamwith JSR Corporation to coordinate strategic efforts,
primarilyduringquarterlyboardmeetings.

Thisgovernance structure balances the interests of JSR

9 Executive Committee members

Micro with those of our shareholders.

Board of Directors
Age

Executive Committee

Total% Female

Under 30-0%

Age 30-50

3Over 50

Age

Total

% Female

Under 30

-

0%

0%

Age 30-50

3

0%

4

0%

Over 50

6

33%

Race

Total

% Female

Race

Total

% Female

Asian

3

0%

Asian

3

0%

White

4

0%

White

6

33%

JSR Micro’s Executive Team13

Corporate Social Responsibility
JSR

socialWhile CSR is under HR responsibility, the CSR team,responsibility a top priority, as recognized by its

Corporation

has“The Social Network,” includes representatives from

inclusion in multiple sustainability indices such as

most departments. The CSR team is responsible for

FTSE4Good,

Excellence,the development of our CSR program, publication

Morningstar Socially Responsible Investment Index

of CSR reports and recommending future projects toand the Dow Jones Sustainability Asia/Pacific Index.

expand the program.

JSR Micro has embraced our corporate parent’s

JSR Micro uses a balanced scorecard to establish

philosophy as we work to include CSR andand communicate business goals, which are thensustainability

Ethibelmadecorporate

Pioneer

initiatives&

businesscascaded throughout the organization, tying theoperations. In order to support this objective, ourbusiness strategy to employee development planspresident proposed and sponsored the creation ofand goals. Corporate social responsibility is included

a cross-functional CSR team, headed by our Humanon our balanced scorecard, and the president

Resources

holds ultimate responsibility for CSR goals.

directorasthroughout

the

CSR

our

management

representative who works with the CSR team leader.
Together they engaged employees throughout theorganizationtoestablisha

corporatesocialresponsibility program and publish our first CSR
report.

Quality at JSR Micro
JSR Micro does not compromise on quality. It is a

not have been expended if quality had beencore value embedded in our culture. We empower

perfect), which uses diverse components such as

our

and

prevention, appraisal and correction. Over the past

excellence from themselves and their colleagues tofive years, our quality efforts have shifted fromensure that we consistently deliver exceptionalcorrective to preventive, and our total cost of

results. Our customer relationships drive our focus on

quality has decreased by 50% during that period,

quality, as expressed in our Quality Policy:

demonstrating our maturity as a quality-focused

employees

todemandprecisionorganization.

Toexceedcustomers’

expectations

byproviding superior quality products and services

To proactively anticipate market activities andcustomer needs

Toprovideanenvironment

in

which

all

employees feel empowered to continuously
improve the quality of products and jobs
Our Sunnyvale plant was built from the ground up to
exacting specifications to support our high-tech
manufacturing requirements. Within our facility, weestablishedan

ISO 9001:2008

certifiedquality

management system to drive our performance. To
measure our quality progress, we established ametric for “cost of quality” (i.e., any cost that would

14

Ethics & Code of Conduct
JSR Micro adheres to the highest standards ofUnited Nations Global
Compact

ethical and responsible behavior. As part of the JSRGroup, we follow the code of conduct outlined in

The JSR Group joined the United Nations Global

The JSR Group Principles of Corporate Ethics, which

Compact in 2009. As a member of the JSR Group,

is available at our website: www.jsrmicro.com.

we extend our parent corporation’s commitment torespect the principles of the Global Compact.

JSR Micro is committed to compliance with the US
Foreign Corrupt Practices Act (FCPA) and all other“The UN Global Compact is a strategic policy

anti-corruption laws where we do business. In 2012,

initiative for businesses that are committed to

all

non-

aligning their operations and strategies with ten

management employees attended anti-corruption

universally accepted principles in the areas oftraining facilitated by our legal firm.

human

of

our

activemanagement

andrights,labor,

environment

and

anti-

corruption. By doing so, business, as a primary driverThis training is an extension of our ongoing ethics

of globalization, can help ensure that markets,and code of conduct policies, with mandatory

commerce, technology and finance advance insessions on topics such as diversity and anti-sexual

ways

harassment. Expanding on our compliance witheverywhere.” (www.unglobalcompact.org)

thatbenefiteconomies

andsocieties

California’s AB 1825 and other state laws requiringsupervisors

toattendanti-sexual

harassment

training, JSR Micro requires all employees to attend
this onsite training every two years.
The Ten Principles(United Nations Global Compact)

Our employee handbook and ethics policy are
posted on our intranet, as is our anonymous, toll-free①

Businesses should support and respect the protectionof internationally proclaimed human rights; and②

Make sure that they are not complicit in human rights

ethics hotline number. Furthermore, we foster an
open-door policy whereby any employee canapproachanysupervisor,

executiveorHR

representative with any concern, suggestion orabuses.
③

Businesses should uphold the freedom of associationand the effective recognition of the right to collective
bargaining;④

The elimination of all forms of forced and compulsory
labour;⑤

The effective abolition of child labour; and⑥

The elimination of discrimination in respect of employment and occupation.

⑦

Businesses should support a precautionary approachto environmental challenges;⑧

Undertake initiatives to promote greater environmental
responsibility; and⑨

Encourage the development anddiffusion of environmentallyfriendly technologies.

⑩

Businesses should work against
corruption in all its forms, including extortion and bribery.

complaint.

15

Our Products
JSR Micro has more than 20 years of experience creating and developing electronics
materials and customizing solutions for our customers and partners. To support our corporate
mission “to create value through materials to enrich society, people and the environment,” werecently expanded our technical expertise to capture new business opportunities in the life
sciences, energy and environment fields.
Although our Sunnyvale operations only serve US markets, we work closely with our Japaneseparent and Belgian sister company to develop our products. We also co-develop end materials
with our customers through our “Innovation One-on-One” approach. The majority of research
into new raw materials is conducted in Japan. JSR Corporation employs a proactive approachto materials development using life cycle assessments, green chemistry and simulation
programs to evaluate the relative risk and potential of various chemical compounds. These
efforts provide a solid base to further the sustainability of our products.

Life Sciences
JSR Micro’s particles and polymers are at the

Magnosphere™ is our line of magnetic microbeads

forefront of life science research, diagnostics andfor automated diagnostic testing and antibody

medical device manufacturing. Leveraging ourengineering. Medical labs use

competency in polymer chemistry and our mission

diagnose diseases, monitor responses to therapy

to develop products that enhance society, JSR

andMicro began research in the field of life sciences

technology

more than 20 years ago. Today, we apply our state-reliable diagnostic tests.

conductDNA

research.

enables faster,

the
Our

clearerbeads toproprietary
and

more

of-the-art manufacturing skills to serve three life
science markets: protein A affinity media for

JSR Micro’s medical polymers include elastomers,

purification of biopharmaceuticals, high technology

thermoplastic elastomers and specialty resins. We

particles for research reagents and diagnostics, anddevelop and manufacture these polymers using ourpolymers for medical devices.

superior polymer technologies, which continually
evolve and improve in quality and performance to

OurproteinA

affinity

media(Amsphere™)

meetcustomerneeds.

Medicaldeviceintegrates our technologies for precision polymer

manufacturers in the US incorporate JSR Micro’s raw

synthesis,

polymer materials into a wide range of medical

surfacemodification

andgenetic

engineering. Due to its high dynamic binding

devices, including tubing, bags and gloves.

capacity, high alkaline resistance, high flow-ratecompatibility, sharp elution profile, easy packing
and affordable price, Amsphere is ideal for the
production of next-generation or biosimilar antibody
drugs. Use of protein A increases efficiency inpharmaceuticals manufacturing and improves theyield and quality of these medicines.
JSR Micro’s magnetic and latex microparticles havebeen widely used in in vitro diagnostic reagents. We
also produce latex beads for diagnostics and toolcalibration.
Magnetic Beads

16

Electronic Materials
JSR

Micro isasemiconductor

leaderinthematerials,

Energy & Environment
innovation

enablingofthe

In August 2007, JSR Corporation launched JM
EnergyCorporation,

dedicatedtothedevelopment of next-generation microelectronics.

development, manufacture and marketing of its

We sell photoresists, packaging materials, chemical

ULTIMO lithium ion capacitor (LIC). An LIC is anmechanical polishing pads and interlayer dielectric

electrical storage device that stores or releases

materials. Integrated device manufacturers aroundelectricity through rapid electrostatic reactions. At

the world use these materials to produce PCs,

the end of 2008, JM Energy was the first to

laptops, smartphones, tablets and other digitalcommercialize LICs.

consumer electronics.
In an era demanding energy conservation and
JSR Micro’s photoresists help create electronic

environmental measures on a global basis, LICs

products that are lighter, faster and more energy

contribute to improvements in functions such as

efficient.

therapid charge and discharge, energy regeneration,

reduction of microchip sizes, which is one of theand load leveling. Manufacturing facilities use LICs

primary methods for semiconductor manufacturers

for a wide range of applications such as peak

to decrease the power consumption of various chipcurrent assistance, storage, back-up power supply

components. Smaller microchips can be placedand standardization of voltage. Compared to acloser to one another, which further reduces thebattery that stores electricity and has slow chemical

voltage required to power them.

reactions, a capacitor makes it possible to charge

Advancedphotoresists

enableand discharge electricity virtually instantaneously. In
A report by the American Council for an Energy-

addition, LICs have an extremely long cycle life.

Efficientthat

They offer diversified solutions to power renewablesemiconductors are the leading factor behindenergy fields such as wind and photovoltaic power

energy-efficiency gains. According to the ACEEE:

generation as well as for industrial equipment“Compared to the technologies available in 1976,

requiring

we estimate that the entire family of semiconductor

compensation. Working with JM Energy, JSR Micro is-enabled technologies generated a net savings ofpioneering the production and delivery of thisabout 775 billion kilowatt-hours (kWh) of electricity inpowerful technology to the US market.

Economy(ACEEE)

statesi n s t a n ta n e o u s

vo l ta ge

drop

the year 2006 alone.” This is equivalent to a savingsof $69 billion ($613 per US household) and theprevention of 479 million megatons of carbon
dioxide (CO2) emissions.

Photo Resist Bottles

Lithium Ion Capacitors (LICs)

17

Our Stakeholders
JSR Micro acknowledges the relevance and importance of stakeholder engagement to our
success and operations. We partner with our customers to understand their needs andexpectations, and we collaborate with our stakeholders to identify issues of concern anddevelop solutions.
The CSR team conducted a stakeholder analysis

collaborate

throughforum,

development

agreements).

which

resultedintheidentification,

joint

researchInaddition,andourclassification, evaluation and prioritization of our key

suppliers, the local community, select government

stakeholders.

and regulatory agencies, and industry and tradeWe

prioritizedstakeholders

bydetermining those most likely to be impacted by ourorganizations are important stakeholders.

organization’s goals, activities, business processes
and sustainability commitments, as well as those

We engage with our stakeholders through a variety

who may impact the success of our operations.

of approaches that range from in-person meetings
to online surveys, as outlined in the following

Our main stakeholder groups are our employees,

summary. The engagement frequency varies from

customers and business partners (primarily ourdaily to annually or as needed, based on theparent company JSR Corporation, our photoresist-stakeholder and approach. Engagement efforts

manufacturing sister companies in Japan andspecific to the preparation of this report are

Belgium, and external companies with whom we

discussed in the Report Scope section.

Methods of Stakeholder Engagement
Employees
Proactive, open-door policyAnnual performance reviews

Quarterly employee meetings including Q&A
sessions

Executive luncheons



Information sessions through brown bag lunchesQuarterly e-newsletter (“Focus In”)

Departmental and staff meeting
communications

Intranet-based forum (“Inside JSR”) andsuggestion box

Surveys (employee satisfaction,interdepartmental, CSR, corporate ethics)



Anonymous ethics hotline

18

Customers

SuppliersManagement/Executive review meetings withRoutine supplier audits

customers

Assessment of suppliers’ quality operatingCustomer report cards/scorecards



Onsite customer auditsAdministration of supplier report cards

Collaboration through joint R&D projects

Business review meetingsCompletion of EICC code of conduct risk

Online CSR survey

systems

assessments

Participation in industry tradeshows, seminars

Government & Regulatory Agencies

and conferences

CSR and ethics webinars



Online dialogue with customers throughcompany website

Participation in social networking websites



Online CSR survey

Business Partners


Review meetings

Onsite audits from parent company



Information exchange through global meetings

Lectures/training sessions

Company websites



Online CSR surveyCollaboration through joint R&D projects

CommunityMembership in sustainability focus group withneighbor companies



Employee volunteering in charitable activitiesParticipation in charity fundraising eventsPartnership with local universities to promoteinternship program

Regular dialogue with local nonprofit
organizations and charitable institutions toSubscriptions to government/regulatory
newsletters

Attendance at workshops and training
programsParticipation in meetings

Onsite inspections and auditsPartnership with community advocacy groups

Membership in environmental, health andsafety councils

Industry & Trade Organizations
Participation in and contribution to industry andtrade organization training programs, seminars
and conferences

Continuous employee education and learning

Stakeholders are defined in the GRI
Sustainability Reporting Guidelines as“entities or individuals that canreasonably be expected to besignificantly affected by theorganization’s activities, products,
and/or services; and whose actions
can reasonably be expected toaffect the ability of the organization
to successfully implement its strategies
and achieve its objectives.”

coordinate product and service donations to19

Our People
Our People are the key to our success. Although our numbers may be small, we are big interms of expertise, dedication and engagement.
Ninety percent of our workforce is headquartered in Silicon Valley, and 14 employees are based
throughout the United States: from the West (Southern California, Arizona and Oregon) to theEast (Connecticut, Massachusetts, New York and New Jersey) to the South (Virginia, North
Carolina and Texas), which helps us efficiently serve all of our US clients.

A Diverse Workplace

WORKFORCE PROFILE

Total% Female

Regular (1)

140

37%

Location

Total% Female

Sunnyvale HQ

126

38%

Other CA Office250%

Outside CA

12

25%

spanning the globe, but they have chosen JSR

Total% Female

Micro to build their careers. The average years ofUnder 3012

17%service with JSR Micro is 7.5, much higher than theAge 30-50

7838%Over 5050

40%Further, 25% of the Executive Committee members

Race

Total

% Femaleare female and 25% are minorities; 38% are 30–50

Asian

71

54%

years of age and 62% are over 50. We believe thisAge

for women and ethnic minorities, but for all
employees. We are truly a multi-cultural company
with 140 people who collectively speak more than
20

languages.

degreesandOurgainedemployees
experiencehave

earnedincountries

national average.

diverse composition within our leadership team is a

Black /African
American7

14%Hispanic / Latino

12

8%

White

47

23%

Other

3

33%

Total

% FemaleManagement

28

25%

Administrative Support
Workers

13

54%

Sales Workers

933%

Professionals

58

52%

Technicians

12

42%

Craft Workers

30%

Operatives

17

0%

Employment TypeJSR Micro cultivates an inclusive workplace, not onlyreflection of the diversity of our general employee
population.

20

Affirmative Action Plan

Employee Satisfaction

For more than 10 years, JSR Micro has worked with

Every two years, JSR Micro conducts an anonymous

Gerstco, Inc., a leading US affirmative action

employee satisfaction survey through a third-party

planning and consulting firm, to coordinate ourvendor. Our overall participation rate of 97% is aannual Affirmative Action Plan (AAP) and ensure

strong indicator of our employee engagement.

that we employ best practices in the sourcing,recruitment, selection and hiring and promoting of

To measure overall satisfaction, the survey asks

top talent without regard to race, color, religion,

employees

sex, sexual orientation, national origin, age, disability“Considering everything, I am satisfied working foror veteran status. Gerstco is a women-owned

this organization at the present time.” On the mostbusiness

recent survey, 86% of our employees responded

certifiedbythe

Women’sBusiness

Enterprise National Council.

favorably,

to

well

rate

the

above

following

averagestatement:

among

22

participating companies included in the high-techindustry norm.
The survey results are invaluable as we challengecross-functional teams to analyze lower rated topics
and develop actionable programs to address andresolve issues. Engaging employees to be part of
The

our

the solution is an important part of our continuous

commitment to an inclusive workplace. JSR Micro’s

diversityof

ourworkforcereflects

improvement process and has led to measurable

Affirmative Action Plan runs on a calendar year

improvements in key areas over the years.

basis; therefore, the FY11 CSR reporting period
overlaps two AAP plan years: CY11 and CY12. AAP
hiring

goals

were

neitherrecommended,norestablished, during either plan year, because thenumbers of women and minorities hired during eachplan year were within targeted ranges for thesegroups.

21

Our People
HiringTurnover
New Hires in FY11

Total

Turnover in FY1115

RATE OF HIRE (2) = 11.8%

Total

5

RATE OF TURNOVER (3) = 3.6%

We grew by 10% in FY11, and our hiring pattern

Our impressively low turnover rate is a testament toreflected our diverse workforce, with an even

employee satisfaction at JSR Micro. Based on our

distribution of new hires from all three age groups as

mostdefined by the GRI (<30, 30–50 and >50). During theturnover averaged 14% to 18% for companies of ourreporting period, 85% of our California hires weresize,from the local community.

understandably, we are proud of our low turnoverrecentand/orcompensationinoursurvey,regionoremployeeindustry;so,rate over the past five years – 3.6% during the
JSR Micro is committed to recruiting locally to help

reporting period – and believe these numbers are

sustain and grow talent in our region. Although JSR

indicative of a growing company that attracts,

Micro does not have a formal policy stating a

retains and engages talent.

preference for local hires (those living in or within theimmediate vicinity of the San Francisco Bay Area), it

JSR Micro believes in a direct correlation between

is our common practice to do so for all levels of ouran employer and employee loyalty. We haveworkforce. Within the Executive Committee, thecarefully managed headcount so that we havesenior management body comprising our president,

never laid off a single employee in our history.

vice presidents and directors from across theDuring the recent recession, we worked closely withorganization, 63% of members were recruited andemployees to execute cost-cutting measures (e.g.,

hired locally.

temporarysalaryfreezeandarequestfor

employees to use half of their accrued vacation) to
We use employee referrals, career sites and social

ensure that we could avoid a reduction inmedia, as well as professional and university

workforce. We are loyal to our employees, and our

networks to recruit new employees. This approach

employees are loyal to us.

demonstrates our commitment to expand andTurnoverdevelop a diverse workforce.

RegionRETENTION
Goal:
To keep turnover at least
20% below industry
average

Sunnyvale60%

3

Other California

0%0Outside California

40%2

Under Age 30

0%0Ages 30-5040%2Over Age 50

60%

3Female

20%

1

Male

80%

4

Age

Gender22

Training & Development

Performance Management
JSR Micro has a robust performance management
system, wherein all employees receive annual
performance reviews and work towards achieving
both individual and development goals.
Underscoring our commitment to grow our talentfrom within, we publish an annual promotion goalon the company’s balanced scorecard. In FY11, ourworkforce was 63% male and 37% female; during
the same period those earning promotions wereContinuous learning is essential to our innovationdriven business and integral to our employee
retention efforts. As such, JSR Micro’s training and

42% male and 58% female. Moreover, 63% of thosepromoted were minorities, which is consistent withthe diversity within our workforce.

development program encompasses a wide arrayofprofessional

development

curricula delivered via offsite
instructor-led

sessions,

andtechnical

seminars, onsite

one-on-one

cross-training

and web-based or online courses. In addition, weoffer continuous compliance and environmental
health and safety training programs. Each year,
several employees are offered inter-departmental
rotational assignments or overseas assignments to“Because of the company’s
educational assistance with mymaster’s degree in accountancy, I
can focus on learning and applying
advanced accounting and businessconcepts in my work.”– Azusa, Accountant

Japan.
Duringtheemployees
Educational

reporting(2.1%)

period,take

Assistance

we

had

advantage
Program.

three

of

our

Althoughparticipation was lower than preferred, we regularly
promote this program to all employees.

EMPLOYEE DEVELOPMENT
Goal:
To increase our training hours
per employee by 10%

During FY11, employees received an average of
29.6 hours of training, with female employees
averaging

38.8

hours

of

training

and

male

employees averaging 27.1 hours of training.

As

there were not any female operatives or craft
workers, there was no data to report for female
workers in those two employee categories.

The

seven women in the two management categories
averaged 40 hours more training than their 20 malecounterparts. This disparity is due to two factors: 1)
there are fewer females in the sample size, and 2)
several female managers attended offsite training
seminars, which contributed more training hours.

23

Employee Benefits

JSR Micro Benefits Package

JSR Micro’s generous benefits package underscores
our commitment to our employees and theirfamilies.

It

also

differentiates

us

from

the

competition: Our benefits package is in the top 3%
of all corporate benefits packages in the San
Francisco Bay Area, and our retirement plancompares favorably to the industry average (seeplan table). Highlights of our benefits package
include 32 paid days off a year, medical/dental
insurance

with

90%

employercoverageofpremiums, 401(k) with employer matching, andservice and employee referral bonuses (refer to thebenefits table for more details).
We welcome participation in our 401(k) plan by all
employees who are at least 21 years old, whether
their status is regular, temporary, full time or parttime. All other benefits are offered to all regular
employees who work at least 24 hours per week –100% of our employees fall into this category.

Retirement
 401(k) plan with 6%
employer matching
Health Insurance
 Medical, dental andvision insurance HSA, HRA, PPO andHMO plans Flexible spending
accounts
 Domestic partnercoverage
Life Insurance Life and disability
insurance Voluntary additional
life insurance
Bonuses Annual performancebonus
 Employee referralbonus 5/10/15/20-year service
bonusesTime Off & Leave
 32 paid days off: 15
vacation, 11 holiday
and 6 sick days
 Paid days forbereavement, jury duty
and volunteeringPregnancy leaveCommuter Check®
vouchers and FasTrak®
toll tags
Credit union
membership
Educational Assistance
Program
Costco membership

Maternity/Paternity
leave
Lifestyle & Wellness
 Employee Assistance
Program Wellness program “Sonic
Boom!”
 Paid 24-hour fitness
membership Foreign travel insuranceThe JSR Micro 401K Plan Difference
Industry

JSR Micro

Participation Rate

85%

93%

Average Balance

$75K

$118K

3%

6%

3+ Years

Immediate

Match Rate
Vesting Period

Internship Program“JSR’s tuition reimbursement program
allowed me to earn my degree, enrich myknowledge and grow my career within JSR
Micro. I am very appreciative of thisbenefit.”– Erika, Import Master Planner

We regularly welcome students into our JSR family
through our internship program. The program offersa hands-on opportunity for college students to work
closely with a dedicated mentor and our technicalstaff on projects that are closely related to their fieldof study and designed to have a measurable
impact on our business. The program targets juniorand senior undergraduates and graduate students
to ensure that candidates possess the requisiteknowledge and skills to work effectively with our
Silicon Valley team. Our program provides acollaborative experience that fosters meaningful
relationships, which often entices graduates tolaunch their careers at JSR.

24

Wellness at Work & Home

Nutrition

JSR Micro promotes a culture of wellness. We offer

Fresh fruit and vegetable delivery services

employees a variety of fun and engaging wellnessHealthy cooking demonstrations



Fruit Day, a monthly company-sponsored event
providing local fruit to all employees

activities throughout the year and encourage
healthy behaviors through spirited competition
betweenindividual

employees

andemployeeteams.

cross-functionalFree gym membership and incentives forfrequent gym use

Our Wellness Committee, the “Wellness Buddies,” isaFitness

team

representing

alldemographic and organizational groups within ourcompany. The Wellness Buddies consult their peers
to identify activities that will engage our workforce.
This grass-roots style of program development has
led to numerous successful wellness competitions

Onsite abs classes, yoga classes and dancing
lessonsFree hi-tech pedometers for all employees

Reimbursement of walking/running event
participation fees

Weight loss contests

Company-sponsored charity walks

and onsite events.
Emotional Well-Being
We understand that busy lives often make it difficult



CONCERN Employee Assistance Program toto take a proactive approach to staying healthy, so

provide employees and their families with free

we offer a range of wellness activities and resources

counseling on all of life’s issues, whether

for our employees.

personal, financial, legal, parenting oreldercareLunch & Learn classes on stress management,
healthy sleeping and more

“These onsite activities are the only times
some of us have to exercise . . . these are
the little benefits that make JSR Micro agreat place to work.”

Medical/Physical Well-Being

Onsite biometric screenings and flu shot clinics

Wellness Corners with weight and blood– Jon, Senior Process Engineer

pressure monitoring

Online health assessment surveys

Online resources for healthy recipes andhealthy lifestyles“The wellness program isgreat! Getting people tocompete gets them toexercise. I think this is thebest ‘health care’ thatthe company can give toemployees.”– Karen, Development
Engineer25

Our Community
Community Outreach:
GivingHoliday gift giving and food drives are longstanding JSR Micro family traditions. Our employees
have gathered and donated hundreds of poundsof canned foods to The Salvation Army eachThanksgiving for years and have been donating toys
to the Family Giving Tree since 2004, helping fulfill
the Christmas wishes of children and teens from Bay
Area families struggling to make ends meet.
In 2012, JSR employees expanded our gift-giving
efforts

with

a

very

successful

back-to-school

backpack drive in coordination with KAFPA, a
nonprofit

organization

helping

fosterchildrenthroughout Santa Clara County.
Moreover, since 2006, JSR Micro has matchedsignificant employee donations to charitable andeducational

institutions

such

as

UNICEF,theAmerican Red Cross, Mission India, the American
Cancer Society, the American Stroke Society, St.

“You can give without loving, but you
cannot love without giving.”– Robert Louis Stevenson

Jude Children’s Research Hospital and numerous
local schools and universities.
We

have

also

made

importantfinancial

contributions to help people recover from largescalecatastrophes

causedbyhurricanes,

earthquakes and tsunamis throughout the world,most recently matching contributions from ouremployees to help in the relief efforts for those
impacted by Hurricane Sandy on the East Coast.

“I was filled with joy while packing boxes offood at the Salvation Army. I say this as aformer recipient of donated food at a
refugee camp in Indonesia. The food itself
wasn't very memorable, but, for my fellow
refugees and me, it was invaluable. I am
grateful for my mutual experiences of joy
as both the giver and the receiver.”- May, QC Engineer

26Community Outreach:
Volunteering
JSR Micro supports humanitarian activities andcausesthatcompany,have

specialemployees

Volunteering

meaningandCommittee,

for

our

customers.

Our“Goodwill

Hunters,”“It is a very rewarding experience to beable to touch lives and help different
people meet their needs. It puts my own
life in perspective and helps me see that itis truly more blessed to give than toreceive.”- Cherry, Senior Development Engineer

gathers frequently to brainstorm, identify andrecommend

programs

that

will

engageour

employees in volunteering and charitable activities
throughout the year.

COMMUNITY
Goal:
To increase ourcharitable andeducational
matching donations
by 10%

As part of our Volunteering Policy, JSR Micro offers
eight paid hours per year to employees engaged involunteering activities. JSR Micro employees don’t
limit their volunteering to work days, but often turnout on weekends to participate in walks and runs to
support fundraisers such as the Packard Summer
Scamperbenefitting

LucilePackard

To increase ourvolunteerism by 10%

Children’s

Hospital and the KEEP ABREAST walk to support the
HERS Breast Cancer Foundation.

To increase KAFKA
and Salvation Army
donations by 15% ormore"After volunteering at the Lucile PackardChildren's Hospital, I walk out feeling like I
want to laugh and cry at the same time,
having experienced incredible courage,
positive attitudes and inspirational smiles.“- Mary, Senior Recruiter

Community Outreach:
Coordination
Since April 2012, JSR Micro has been a member oftheMoffettPark

nonprofit,

BusinessGroupmembership-based(MPBG),

aorganizationcommitted to supporting the social, environmental
and economic health of our community. MPBG
focuses on common business concerns within our
localcommunity

sustainability,

throughcommunity

development,

engagement

andimproved mobility efforts. For example, the group
works to develop, engage and sustain community
programs such as emergency ride service andJSR bike riders at the “Tour de Moffett Park Bike and Lunch
Extravaganza” sponsored by the Moffett Park Businessalternative

commuteprograms

that

supportworkforce mobility.

Group

27

Our Customers and SuppliersInnovation One-on-One
For more than half a century, our corporate parent,
JSR Corporation, has worked hard to foster aninnovative and collaborative culture. Both attributes
have been guiding principles at JSR Micro for morethan 20 years as we have expanded our businesswithintheelectronics

materials

industryandbeyond, developing new products for life sciences,

Supply Chain Managementand EICC
Our customers demand transparency throughout
the supply chain. As a major chemical supplier tothe semiconductor industry, JSR Micro is committed
to developing a socially responsible supply chain
consistent with the code of conduct established bygreen energy and environmental technologies.

the Electronic Industry Citizenship Coalition. The

The slogan “Innovation One-on-One” summarizes

70 international electronics companies that are

our

value

proposition

collaborative
adapting

toapproachproduct

ourofcustomers

EICC is an industry group composed of more than–

discovering

technologies

to

fit

a

and

specificcustomer requirements and deliver individualizedmaterial solutions. JSR Micro partners with ourcustomers to establish a competitive advantage by
delivering next-generation technologies, consistentandreliablequality,andbalanced

costofworking together to improve efficiency, and social,
ethical and environmental responsibility in the
global supply chain. Many of our customers are
long-standing members of the EICC.
The EICC Code of Conduct provides guidelines for
performance
corporateandcompliancewith

criticalsocialresponsibility

policieswithownership.

guidance in five critical areas of CSR performance:

Over time, our Innovation One-on-One approach

management system and ethics. We began hostinglabor,

has helped us anticipate our customers’ needs andproactively research, develop, manufacture andsupplyadvancedmaterials

thatenableourcustomers to out-perform the competition, and tosustain and grow their businesses. Our success is adirect result of our customers’ success.

healthandsafety,environment,

third-party EICC standardized audits in 2012. The
audit results are disclosed to our customers uponrequest.
In turn, we are establishing our own system to ensurethat our suppliers maintain the highest standards ofsocial, economic and environmental responsibility.
We practice due diligence to ensure that our
suppliers treat their workers with respect and dignity
and

that

their

manufacturing

processes

areenvironmentally safe.
Our supplier management approach involves a
combination of education (supported by training)and compliance (supported by audits). To assess
training needs and prepare the supplier for an
audit, we conduct a supplier assessment survey inadvance. We work with our suppliers to identify
solutions and address gaps discovered during anaudit. A new supplier management system, which
incorporates EICC principles, will be implemented in
FY13.

28

JSR Micro Wins Intel SCQI Awards
JSR Micro has won Intel’s prestigious Supplier

The SCQI and Preferred Quality Supplier (PQS)

Continuous Quality Improvement (SCQI) awards forawards are part of Intel’s demanding, industry-

two successive years, following fiscal years 2010 andleading supplier program. During the past four2011. The SCQI award is the highest quality award

years, JSR Micro received a total of five awards fromthat Intel bestows upon its suppliers. To qualify forIntel: three SCQI awards and two PQS awards.

award consideration, a supplier must score at least
95% on the quarterly report card that evaluates
performance, cost, quality, availability, delivery andtechnology, as well as environmental, social andgovernancegoals.

Moreover,suppliers

must

achieve 90% or greater on an improvement plananddemonstrate

soundqualityandbusiness

systems.

29

Our Environment
JSR Micro is keenly aware that all of our business activities have direct and indirect impacts
on the environment. As a responsible company, we believe that our success depends onsustainable practices. To demonstrate our environmental commitment, we maintain an ISO
14001:2004 certified environmental management system. Our Environment, Health & Safety
Policy states that:

JSR will strive to implement necessary actions to protect the environment and its employees
by preventing pollution, injuries and ill health.



JSR will meet or exceed all applicable government requirements and voluntary
requirements to which JSR subscribes.



JSR will strive to continually improve our environmental, health and safety program byestablishing and monitoring goals and objectives to improve overall performance.

In pursuit of ever-increasing efficiency within our operations, JSR Micro has made a serious
commitment to reduce our environmental impact throughout the manufacturing lifecycle. The
key impacts occur through the energy, water and raw materials we use to run our operations
and manufacture our products, and the emissions, wastewater and waste generated fromthose processes, as detailed in the following chart.
JSR Micro Overview of Environmental Impact by Business Activities at JSR Micro Plant (FY2011 Results)

30

GHG
Goal:

Water
Goal:

10% reduction from 2008
baseline level by 2018

35% reduction from 2008
baseline level by 2018

Hazardous Waste
Goal:

Non-Hazardous Waste
Goal:

45% reduction from 2008
baseline level by 2018

25% reduction from 2008
baseline level by 2018

Environmental Goals & Challenges
In

impactinclude our exploration of environmental mitigation

strategically, JSR Micro has established green goals

order

to

measures such as a conversion to solar panels, windwith 10-year targets to reduce greenhouse gas

power and/or recycled (grey) water for irrigation in(GHG) emissions, water usage and waste relative toFY11, but these great ideas ultimately failed our

FY08 baselines. JSR is sensitive to its impact on thefeasibility studies. We decided against a conversion

environment and does not believe increased

to solar energy due to the extremely lengthy return

business is a justification for increasing our footprint.

on investment period and the constraints the panelAssuch, thereduce(notinstallation would have placed on our usable

which

space. Other studies revealed that there is notunderscores our overall reduction commitment

enough wind on our rooftop to operate even small-

despite expanding production capabilities andsized wind turbines and the installation of taller,

volumes.

larger turbines was both cost-prohibitive and anormalized

by

goal

environmental

values areproduction

absolute

volume),potential threat to local birds. The existing grey
We have implemented straightforward conservationwaterlines provided by the City of Sunnyvale were

projects and engaged our workforce to be creativenot close enough to our facility and a cost/benefit

in identifying future improvement projects. Our

analysis did not support installation of a pipe

grassroots campaign promotes green ideas byextension.

incentivizing our employees to help us establish andachieve new goals. As a result, we made significant

While we were not able to implement every project

improvements from FY08 to FY11, reaching our goals

idea, we were impressed with the ingenuity andahead of schedule. And we are dedicated to thedetermination of our people in proposing greatchallenge of sustaining those below-target results

ideas to improve our sustainability initiatives. The

through FY18.

following

sectiondescribes

ourenvironmental

improvement efforts, achievements and future
We have faced several challenges in taking green

plans.

initiatives from theory to practice. Some examples

31

Climate Change
Climate change is a global issue. JSR believes that we can make a difference by raisingawareness concerning the consequences of our daily activities, by establishing and achieving
environmentally sensitive goals, and by implementing continuous improvements.

Managing our Energy & Carbon Footprint
Our emissions are from natural gas used to operate onsite boilers and from purchased electricity used to
power our plant, labs, warehouse and administrative facilities. Our estimated FY11 GHG emissions were
3,300 tons of carbon dioxide equivalents (CO2e) (4). Direct and indirect emissions are broken out asfollows:Direct GHG emissions: 1,300 tons of CO2e based on 26,800 gigajoules (GJ) of energy consumption. Allof these emissions were generated from burning 24,700 thousand cubic feet (Mcf) of purchased
natural gas to operate onsite boilers.



Indirect GHG emissions: 2,000 tons CO2e based on 28,000 GJ of energy consumption. These emissions
were generated from purchasing electricity used to power plant, labs, warehouse and administrative
facilities.
○

Of 28,000 GJ of energy consumption, 23,600 GJ came from indirect non-renewable sources. The
primary fossil fuels used were 15,000 Mcf of natural gas and 36 tons of coal (5), which accounts for
24% of the non-renewable total. The rest of the indirect non-renewable sources were nuclear
energy (28%), unspecified sources (27%), large hydroelectric (19%) (6) and other fossil fuels (2%) (7).

○Of 28,000 GJ of energy consumption, 4,400 GJ came from these indirect renewable sources: geo
thermal (30%), biomass and waste (27%), wind (24%), small hydroelectric (18%), and solar (1%) (8).

32Improving

EnergyEfficiency&

Conservation
In recent years, JSR Micro has implemented several
improvements to our infrastructure to improve
efficiency and reduce energy usage.
We installed a new industrial boiler in FY11 and two
new chillers in FY12 to serve our plant andwarehouse.

Theboilerandchillers

are

high-

efficiency tools that enable JSR to reduce energy
costs, increase efficiency and reduce our carbon
footprint, thus benefiting the environment andsociety.

Collectively,

these

three

capitalexpenditures are expected to result in savings of
3,200 gigajoules, which reflect 200 tons of CO2e per
year (9). That is a significant reduction in CO2e andenergy usage – roughly equivalent to eliminating
emissions by 25 passenger vehicles on an annual
basis (10).
While

We ship our products by ocean freight and air boththesesignificant

investments

savings,

improvements

not

have

have

contributed

all

our

efficiency

large

capitalofrequiredtoinvestments. Between FY08 and FY12, we installed
high-bay induction fixture retrofits with occupancy
sensors to save energy on lighting. We also
implemented

efficiency

upgrades

on

our

air

compressor system, saving over nine tons of CO2e
per year. Our IT team has migrated all data storage
toaservervirtualization

system thatallowsforseamlessofsoftware,reducing

computerworkstation overhead and further reducing energy
usage.

Approaches to Product Delivery

We

have

also

sprayednationallyandinternationally.

Becausethegreenhouse gas footprint of freight by water is muchless than freight by air, we have increased ourocean-freight shipping and reduced air-freightshipping. However, some of our products do require
air shipment due to time and/or temperature
constraints. Significant improvements in our planninghave enabled us to ship the majority of our exportsby sea.
Over a two-year period, from September 2010 to
September

2012,

these

efforts

reducedourgreenhouse gas emissions by 1,146 tons of CO2e (11).

anti-reflective

coating on our rooftops and insulation foam on ourwarehouse interior walls to provide better climate
control and reduce energy usage, particularly air
conditioning.

Future Plans

We will continue to explore ways to reduce energy consumption andminimize our carbon footprint. Future plans include reducing thenumber of computer servers, implementing automatic air conditioning
shutdown in certain areas during off hours and pursuing LEED
(Leadership in Energy and Environmental Design) Silver certification on
new building construction.
33

“I used to fill up my gas tank every week but now that I havean electric car, I just plug it in at JSR’s charging station while I
work. This has saved me 44 gallons per month.”- Keiko, Import/Export Analyst

Supporting Greener Commuting
While JSR Micro does not currently track employee
commuting mileage and associated greenhousegas emissions, we have implemented practices toencourage use of public transportation and othergreener commuting options.

Commuter Checks
To stimulate the use of public transportation, JSR
Micro provides Commuter Check vouchers to
employees. The vouchers are accepted by transit
operators for the purchase of transit passes andElectric Vehicle (EV) Charging Station

tickets. JSR Micro covers up to $150 of public
transportation costs per employee each month.
Currently, about 6% of our employees participate inElectric

vehiclesgreenhousegas

generateabout

emissions

than

70%

less

vehicles. Calculations show that a gas-powered
vehicle would have to average 78.3 miles per gallon
to be as environmentally friendly as an electricvehicle (12). One challenge for electric cars is theirlimited range as most can only travel about 100
miles per charge. To address this challenge andencourage

employees

tousethis program.

gas-powered

environmentallyfriendly transportation, JSR Micro installed two 120-

FasTrak
JSR Micro also provides employees with FasTraktags, a toll collection system that electronically pays
tolls on California bridges and roads without
requiring drivers to stop, thus reducing greenhouseemissions.

volt charging stations in our employee parking lot.
As more employees begin to drive electric vehicles,
we will increase the number of charging stations tomeet the demand.

34

Improving Water Use

Water

To reduce our water usage, we focused first on
Asa

California-based

company,

responsible

landscapeirrigation,

the

area

of

greatest

management of water usage is critical. All of ouropportunity for improvement and that which also

water comes from our municipal water supply,

had the least impact on our operations. The

managed by the Santa Clara Valley Water District.

irrigation water reduction efforts implemented in

Water is an essential raw material in the production

FY09 resulted in a 30% water savings in the sameof our finished products and indispensable in ouryear and ongoing savings of 40% thereafter.

quality control processes. Mindful of local water
shortages, we prioritized the reduction of water

To achieve this reduction, we joined the Irrigation

usage as a key objective.

Technical Assistance Program hosted by the Santa
Clara Valley Water District and worked with them toWhen we started to track water usage in FY08, we

assess our irrigation system. Based on their advice,discovered that we consumed more than 13 million

we installed an environmentally advanced irrigation

gallons of water per year, and that more water wascontroller

consumed for landscape irrigation than production,

optimal levels based on historic weather data andlab operations and indoor plumbing combined.

actual local temperature. As the temperature

Since then, we have reduced water consumption

increases or decreases, the controller increases orby 5 million gallons per year, consuming roughly 7.7

reduces the amount of water applied.

milliongallons

Productionofmunicipal

operations

and

water

in

indoorthat

adjusts

landscapewatering

to

FY11.

plumbing

Under the same program, we also removed 24,000

consumed 3.7 million gallons and irrigation of oursquare feet of lawn and replaced it with chip bark.

campus landscaping used 4.0 million gallons.

This improvement not only reduced irrigation waterneeds, but resulted in a more balanced, healthier

Future Plans

Moving forward, we will look foropportunities to reduce water
consumption within our facility. For
example, many of JSR’s products areshipped in glass bottles, which are
washed in a bottle washer prior tofilling. We will evaluate thisequipment’s water usage andconsider improvements to make theprocess more efficient.

landscape.

Whileplanning

thisproject,

wediscovered the diverse needs of the lawn, pine trees
andredwood

trees.

By

removing

lawn

and

adjusting irrigation accordingly – for example,
replacing some sprinkler and spray heads withstream bubblers – we were able to provide precise
watering to all landscape flora to achieve optimum
results.

35

Materials & Waste
Like all manufacturing companies, JSR Micro uses In 2011, JSR Micro generated 240,000 pounds of nonmaterials in the production process that result in -hazardous waste. Of this, 230,000 pounds (96%) was
both regular, non-hazardous waste and hazardous diverted through recycling and 10,000 pounds (4%)
waste byproducts. We have made significant was disposed of in municipal landfills (13).
reductions in our regular, non-hazardous waste
generation, diverting over 220,000 pounds of regular JSR Micro also generated 181,000 pounds ofwaste from the landfill every year based on hazardous waste; of this, 140,000 pounds (77%) was
recycling. The major recycled items are wood, re-used as fuel for cement kilns or incinerated by our
cardboard boxes, glass, paper, e-scrap, plastic, hazardous waste disposal contractor and 41,000
cans and batteries.

pounds (23%) was treated by our contractor using

such methods as neutralization, separation andAs a chemical manufacturer, we have always precipitation, whereby filtered solids are stabilized
taken every precaution in handling our hazardous and disposed of in municipal landfills.
material and waste. Hazardous chemicals are usedprimarily in the manufacturing and testing ofproducts

oreffluents

becomevesselcleaning

procedures.

Thehazardous

waste,

mostcommonly characterized as ignitable or corrosive.

Future Plans

We will continue to explore
ways to reduce both
hazardous and nonhazardous waste. We haveplans to eliminate the use of
Styrofoam cups andincrease e-filing in place of
paper filing. Within our
production facility, we will
explore ways to reducepackaging and streamline
production and quality
control processes.

36

Past Initiatives
Reducing Non-Hazardous Waste

Reducing Hazardous Waste

JSR Micro has a long history of sustainability-related

As a part of JSR Micro’s continuous improvement

goals for waste materials. The total weight of non-program, we are always striving to be morerecycled waste has dropped 80% over the past six

efficient, conserve resources and reduce waste. In

years, and we recycle 96% of our non-hazardous

FY09, after reviewing our solvent usage and filtration

waste. The majority of our recyclables are mixed

methods,

materials such as cardboard and wood, resulting

resulting in 66,000 pounds of reduced solvent use

from the high volume of shipping and packing

and preventing 880 pounds of solid waste annually.

materials used at our production facility.

We

also

we

improved

decreased

production

hazardous

processes,

waste

by

streamlining our quality control process to reduce
Ourrecyclingaccomplishments

have

been

recognized by the state of California for threestorage sample use, while maintaining consistency
and quality in our lab protocols.

consecutive years, earning us Waste Reduction
Awards Program (WRAP) awards from the California
Waste Management Board in 2009, 2010 and 2011.
We are continually looking for new ways, both large
and small, to reduce waste and protect theenvironment. For example, we recently replaced all
paper towel dispensers with high-efficiency handdryers in all of our onsite facilities, thus eliminating
the waste of 280,000 paper towels per year.
Additionally, we switched office paper usage to100% post-consumer content recycled paper, andbusiness cards for all employees will soon be printed
on 100% recycled paper with soy-based inks.

37

Safety
Safety is JSR Micro’s top priority. As a chemical manufacturing company, we are acutely
aware of the need to exercise extreme caution in all of our activities. Therefore, we are neversatisfied with mere compliance, but always strive for continuous improvement and industry bestpractices to ensure the safety of our employees, customers and the environment.
JSR ensures compliance with all government and

If we do receive a citing, we make sure to identify

voluntary

the root cause, take corrective measures andenvironmental,

requirements

through

healththeandfollowingsafetyoversight

check that the remedial actions are effective.

activities:
The sole environmental citing in 2011 was related toAnnual compliance audits

the storage of a few liters of hazardous waste pastNew process, equipment, and chemical reviews

the specified accumulation time, for which we

New or updated regulation monitoring

paid a $2,000 fine. The issue was correctedInternal inspections

immediately

The

company

regularly

and

had

zero

impactonthesurrounding environment.
undergoesregulatory

inspections by the Environmental Protection Agency
and Cal/OSHA. As our results demonstrate, a

JSR Micro has never had a hazardous substancespill that was significant enough to threaten humanviolation is very rare.

health, land or water bodies.

Incident Type

FY08

FY09

FY10

FY11

Environmental violation

0

0

0

1

Reportable spill

0

0

0

0

Safety Training & Drills
JSR implements safety training and drills on aregular basis, including:

Hazard communication training

Injury/illness prevention training

Evacuation drillsEmergency spill response drills

Fire prevention training and fire extinguish-

Average safety training hours
per year:• per employee: 7 hours• per chemical handler: 9 hours• per administrative work
employee: 3 hours

er drills

First aid and AED

Chemical hygiene training

Hazardous waste operations and emergency response training

38

Customer Safety
The health and safety of our customers and those

Product Labeling &Hazard Communication

who use JSR products will always be our highest
priority. To enhance our ability to meet this goal, JSR

Our stringent approach to managing productmaintains a staff of environmental, health andlabeling and hazard communication protects both

safety experts who understand current laws andour customers and our employees. JSR Microregulations

provides material safety data sheets or safety data

and

keep

abreastofpending

semiconductor industry regulations. Our EH&S staff

sheets and attached labels for

manages

all chemical

environmental

products regardless of hazard level. By regulatory

management system that evaluates health andand internal requirements, all of JSR Micro’s productenvironmental risks through all phases of the

MSDSs

product lifecycle: from product assessment to R&D

environmental and health hazard information, safe

and to commercialization of our finished products.

handling instructions, recommended preventativeacomprehensive

includecomposition

information,measures, proper disposal method and regulatory
We

take

pride

in

the

development

andinformation. All chemical product labels provide

maintenance of comprehensive material safety

safetydata sheets (MSDSs) for each product we develop,

ingredients, emergency response and contactfrom R&D samples to products used in massinformation. We are proud that JSR Micro has neverproduction around the world. Our EH&S staff is

had a product label non-compliance violation.

readily available

for

directcustomerwarnings

andprecautions,hazardous

support,providing detailed product composition, regulatory

Hazard information is continuously updated torestrictions

andprovide users with the most accurate and useful

handling recommendations beyond those specified

information available. JSR Micro’s MSDSs and labelson the MSDS.

meet or exceed the Occupational Safety andandadditionalsafe

storage

HealthAdministration’sHazardCommunication

We believe the development of our customer

Standards. The EH&S department works closely withhealth and safety begins with a comprehensive

our Asian and European counterparts to ensure

understanding of the needs and concerns of ourregulatory compliance worldwide.

customers and the industries we serve. We maintaina close association with industry associations such

Transition

of

our

MSDSs

to

meet

the

strictas SEMI® (Semiconductor Equipment and Materials

requirements of Globally Harmonized System ofInternational), World Semiconductor Council andClassification and Labeling of Chemicals (GHS) is

Semiconductor Industry Association.

underway. This transition will allow for a thoroughanalysis of all raw materials and their hazardous
properties.

GHS

harmonization

adoptionofwillhealth,provideglobalphysicalandenvironmental hazards, as well as provide standard
pictograms

for

easy

identificationofproduct

hazards on both safety data sheets and labels.
These changes will make safety information readily
available and easily understandable to chemicalhandlers and users. JSR Micro intends to complete
this transition by FY14.

39

Our Proactive Approach to Workplace Safety
We are OHSAS 18001:2007 certified, with comprehensive safety policies, rules and proceduresin place to ensure that all employees perform their jobs safely. JSR has not had a single
chemical injury since FY09 due to our rigorous preventive measures and employee awareness.
Beyond the baseline of responsible policies, rules and procedures, we believe that true safety isa result of a safety-first culture nurtured by all employees, who proactively participate in oursafety initiatives and work as a team to create a positive and productive atmosphere. JSR has
implemented various employee-based programs and activities to engage employees in thecompany’s safety improvement efforts. For example, every meeting within the company starts
with the question: “Are there any safety issues that need to be discussed?”

EH&S Committee
First established in 2001, the EH&S Committee is across-functional team with the mission of ensuring
that

JSR

Micro’senvironmentally

workplace

responsible.

is
The

safe

and

committee

conducts monthly inspections and meets afterward
to discuss the inspection findings, corrective actions
and ideas for improvement. The members also

“The EHS committee serves anessential purpose, proactively
preventing issues, conducting
inspections and relaying EH&S
related information to employees.”- Laurence, Senior Process Engineer

discuss employee concerns, share new information
and

craft

EH&S-related

communications

for

distribution throughout the organization. Committee
membership is rotated on an annual basis to ensure
that

the

committee

benefitsfromdifferent

perspectives and integrates new employees on aregular basis.

Suggestion Box & Near-Miss
Log
Empowering our employees to voice their opinions
and express their concerns helps us stay proactive
and positive in our ongoing effort to improve
productivity, efficiency and workplace safety. We
encourage employees to make suggestions for
improvement and report near-miss observations in
our online suggestion box and near-miss log on aregularbasis.

Duringemployeemeetings

werecognize and reward employees with the mostconstructive ideas.

40

Improving Ergonomics
Even though we are a chemical manufacturer, themost common workplace injuries do not involve
chemicals, due to our effective workplace safety
programs and strong safety-first culture. Instead, themost common injury at JSR Micro is related toergonomics, particularly the repetitive use of lab
pipettes and computer mice and keyboards.
Preventing

ergonomics

injuries

has

been

repetitive use of tools or computers, and employees
todownplayminor

discomfort

asaninconsequential part of the job. As such, we havedetermined that ergonomic injuries pose one of ourgreatest workplace safety challenges. Since 2009,
we have implemented a number of initiatives tomitigate this risk:

in FY10, promotes the company’s safety culture byencouraging personal responsibility for the practiceand encouragement of safe behaviors as well as
identification and elimination of unsafe behaviors.
andergonomicallysound

behaviors

such

as

wearing proper personal protective equipment
(PPE)

or

employingworkstations.

The

safe

postures

at

their

company

believes

that

this

approach, whereby employees work together toprevent injuries, rather than being policed bymanagement,hashelpedus

nurtureatrulysustainable safety culture. Both the PPE and posturecompliance

rates

have

shown

markedimprovement since the program was implemented.

Annual ergonomic trainingWork station evaluations and improvements



Ergonomic

softwareOur Behavior-Based Safety Program, implemented

Employees observe and advise each other on safe

complicated because most jobs require the daily,
tend

Behavior-Based Safety
Programinstalled

on

every

computer to monitor keyboard and mouseclicks

Mandatory micro-break compliance for allcomputer users



Installation of ergo-proper hardware (lifting
devices,ergo-friendly

chairs,monitors,

keyboards, mouse devices, etc.)Online discomfort reporting system and selfassessment tool41

GRI Content Index *ProfileDescription

Reported

Cross-reference / direct answer

Fully

Letter from Our President

Disclosure
1. Strategy and Analysis
1.1Statement from the most senior decision
maker

2. Organizational Profile
2.1

Name of the organization

Fully

JSR Micro, Inc.

2.2

Primary brands, products and/or services

Fully

Our Products

2.3

Operational structure of the organization

Fully

Our Company

2.4

Location of the organization’s headquarters

Fully

Sunnyvale, CA

2.5

Number of countries organization operates

Fully

United States

2.6

Nature of ownership and legal form

Fully

Corporation, wholly-owned subsidiary

2.7

Markets served

Fully

Our Products

2.8

Scale of the reporting organization

Partially

Our Company
As a privately held company, financial
information is considered confidential
and is not reported.

2.9

Significant changes during reporting period

Fully

None

2.10

Awards received in the reporting period

Fully

Letter from Our President
Materials & Waste: Reducing
Hazardous Waste

3. Report Parameters
3.1

Reporting period

Fully

Fiscal year 2012 (April 1, 2011 to March
31, 2012)

3.2

Date of most recent previous report

Fully

N/A (first report)

3.3

Reporting cycle (annual, biennial, etc.)

Fully

Biennial

3.4

Contact questions regarding the report

Fully

About Our CSR Report: Contact
Information

3.5

Process for defining report content

Fully

About Our CSR Report: Report Scope

3.6

Boundary of the report

Fully

About Our CSR Report: Report
Boundary

3.7

Any limitations on report scope or boundary

Fully

About Our CSR Report: Report
Boundary

3.8

Basis for reporting on joint ventures,

Fully

None

Restatements

Fully

None

Significant changes from previous reporting

Fully

N/A (first report)

subsidiaries, leased facilities, outsourced
operations, other.
3.10

period3.12

Standard Disclosures table

Fully

GRI Content Index

3.12

External assurance

Fully

About Our CSR Report: Report Profile &Self Declaration

Profile

Description

Reported

Cross-reference / direct answer

Fully

Our Company: Governance at JSR

Disclosure
Governance, Commitments, and Engagements
4.1

Governance structure

Micro and Corporate Social
Responsibility
4.2

Indicate whether the Chair of the highest

Fully

Chair is JSR Micro's president

governance body is also an executive officer
4.3

Unitary board structure

Fully

N/A

4.4

Mechanisms for shareholders and employees

Fully

Our Company: Governance at JSR
Microto provide recommendations or direction to
the highest governance body
4.14

Stakeholder groups engaged

Fully

Our CSR Report: Report Scope

4.15

Stakeholder identification and selection

Fully

Our Stakeholders

4.16

Approaches to stakeholder engagement

Fully

Our Stakeholders

Fully

Our People: Hiring

Partially

Our Environment: Environmental Goals

Performance Indicators
Economic
EC7

Local hiring

Environmental
EN1

Materials used by weight or volume

and Challenges
EN3

Direct energy consumption by primary source

Fully

Our Environment: Managing ourEnergy & Carbon Footprint

EN4

Indirect energy consumption by primary

FullysourceEN5

Energy saved due to conservation andEnergy & Carbon Footprint
Partially

efficiency
EN6

Initiatives to provide energy-efficient or

Our Environment: Managing ourOur Environment: Improving Energy
Efficiency & Conservation

Partially

Our Products

renewable energy-based products andservices
EN8

Total water withdrawal by source

Fully

Our Environment: Water

EN16

Total direct and indirect GHG emissions by

Fully

Our Environment: Managing ourweight
EN18

Initiatives to reduce GHG emissions andEnergy & Carbon Footprint
Partially

reductions achieved
EN22

Total weight of waste by type and disposal

Our Environment: Improving Energy
Efficiency & Conservation

Fully

Our Environment: Materials and Waste

Fully

SafetymethodEN23

Total number and volume of significant spills

Profile

Description

Reported

Cross-reference / direct answer

Total workforce by employment type,

Fully

Our People: A Diverse Workplace

Partially

Our People: Hiring

Fully

Our People: Employee Benefits

Fully

Our People: Training & Development

Partially

Our People: A Diverse Workplace andDisclosure
SocialLA1

employment contract, and region broken
down by gender
LA2

Total number and rate of new employee hires
and employee turnover by age group, genderand region

LA3

Benefits provided to full-time employees notprovided to temporary or part-time employees

LA10

Average hours of training per year per
employee by gender, and by employee
category

LA13

SO3

Composition of governance bodies andbreakdown of employees per employee

Our Company: Governance at JSR

category

Micro

Percentage of employees trained in

Fullyorganization’s anti-corruption policies andOur Company: Ethics and Code of
Conduct

procedures
PR3Type of product and service information

Fullyrequired by procedures; percentage of

Safety: Product Labeling & Hazard
Communication

significant products and services subject tosuch information requirements
PR4

Total number of incidents of non-compliance

Fully

Zero incidents

with regulations and voluntary codes
concerning product and service informationand labeling* This table identifies the GRI standard disclosures reported and the location of the associated responses.
Disclosures not listed are not reported.

44

Third-party GRI Application Level Check

45

End Notes
1) Regular describes employees who work under an6)

indefinite employment status; JSR Micro did notrenewable source under California Renewable

Large hydroelectric is not counted as aemploy any part-time, self-employed, fixed-term,

Portfolio Standard Program.

temporary contract, seasonal or supervised workers
during the reporting period.

7) Pacific Gas and Electric’s power mix data wasused for the indirect renewal and non-renewal

2)

Due to the small size of JSR Micro’s overallsource calculations.

workforce, new hires within segments are notcalculated.

8) Ibid.

3)9) The savings were verified by both Enovity, Inc.,

Due to the small size of JSR Micro’s overall

workforce, turnover rates within segments are not

and Pacific Gas and Electric.

calculated.
10) Pacific Gas and Electric’s GHG emission factors
4) Direct emission (scope 1) and indirect emission

were used for the conversion calculation.

(scope 2) are combined in the graph. GHG
emissions are calculated based on emission factors11) The conversion factors were obtained from thepublished in the PG&E Greenhouse Gas Emission

report titled “Smart Goods Transport” by Low

Factors Info Sheet, last updated April 8, 2011 andCarbon Leaders Project, an initiative supported byavailable

the UN Global Compact and World Wildlife Fundatwww.pge.com/includes/docs/pdfs/

shared/environment/calculator/(WWF).

pge_ghg_emission_factor_info_sheet.pdf. PG&E is
the investor-owned utility that provides natural gas

12)and electricity to JSR Micro’s Sunnyvale facility.

conversion factors issued by the Greenhouse Gas

The comparisons were made using theEmission factors for 2010 and 2011 are based on the

Protocol.

average of PG&E’s 2005 to 2009 GHG emission
factors. Emission factors for 2008 and 2009 are

13) The information on the disposal and recycling

based on PG&E’s third-party-verified GHG inventory

methods for non-hazardous and hazardous waste

submitted to the California Climate Action Registry

was provided by our certified waste management(2008) and The Climate Registry (2009).

contractors.

5)

The amount of natural gas and coal used togenerate the electricity was calculated based on
the information from the U.S. Energy Information
Administration.

46

Acknowledgement
This report was made possible by the willing collaboration of many contributors. We wish to acknowledge
and extend our gratitude to all of those who worked on this project. Many people worked behind thescenes to research, analyze, and report the data; to draft, edit and publish the text; to research, design
and incorporate the images – everyone engaged played an important role in the production of the final
report.

47

GRI Detailed Content Index for JSR Micro2012 Corporate Social Responsibilty Report

G3.1 Content Index - GRI Application Level C
Application Level C

Third-party-checked

STANDARD DISCLOSURES PART I: Profile Disclosures
REPORT FULLY ON THE BELOW SELECTION OF PROFILE DISCLOSURES OR PROVIDE A REASON FOR OMISSION
1. Strategy and Analysis
ProfileDisclosure

Description

Reported

Cross-reference/Direct answer

1.1

Statement from the most senior decision-maker of the organization.

Fully

Letter from Our President

2. Organizational Profile
ProfileDisclosure

Description

Reported

Cross-reference/Direct answer

2.1

Name of the organization.

Fully

JSR Micro, Inc.

2.2

Primary brands, products, and/or services.

Fully

Our Products

2.3

Operational structure of the organization, including main divisions, operating companies,
subsidiaries, and joint ventures.

Fully

Our Company

2.4

Location of organization's headquarters.

Fully

Sunnyvale, CA

2.5

Number of countries where the organization operates, and names of countries with either
major operations or that are specifically relevant to the sustainability issues covered in thereport.

Fully

United States

2.6

Nature of ownership and legal form.

Fully

Corporation, wholly-owned subsidiary

2.7

Markets served (including geographic breakdown, sectors served, and types ofcustomers/beneficiaries).

Fully

Our Products

2.8

Scale of the reporting organization.

Partially

Our Company
As a privately held company, financial information is considered confidential and is omitted not reported.

2.9

Significant changes during the reporting period regarding size, structure, or ownership.

Fully

None

2.10

Awards received in the reporting period.

Fully

ProfileDisclosure

Description

Reported

Cross-reference/Direct answer

3.1

Reporting period (e.g., fiscal/calendar year) for information provided.

Fully

Fiscal year 2012 (April 1, 2011 to March 31, 2012)

3.2

Date of most recent previous report (if any).

Fully

N/A (first report)

3.3

Reporting cycle (annual, biennial, etc.)

Fully

Biennial

3.4

Contact point for questions regarding the report or its contents.

Fully

About the Report

3.5

Process for defining report content.

Fully

About the Report: Report Scope

3.6

Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities, joint
ventures, suppliers). See GRI Boundary Protocol for further guidance.

Fully

About the Report: Report Boundary

3.7

State any specific limitations on the scope or boundary of the report (see completenessprinciple for explanation of scope).

Fully

About the Report: Report Boundary

3.8

Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations,and other entities that can significantly affect comparability from period to period and/or
between organizations.

Fully

None

3.10

Explanation of the effect of any re-statements of information provided in earlier reports, andthe reasons for such re-statement (e.g.,mergers/acquisitions, change of base
Fully
years/periods, nature of business, measurement methods).

None

3.11

Significant changes from previous reporting periods in the scope, boundary, or
measurement methods applied in the report.

Fully

N/A (first report)

3.12

Table identifying the location of the Standard Disclosures in the report.

Fully

3.13

Policy and current practice with regard to seeking external assurance for the report.

Fully

GRI Content Index
About the Report: Report Profile section

ProfileDisclosure

Description

Reported

Cross-reference/Direct answer

Governance structure of the organization, including committees under the highest
governance body responsible for specific tasks, such as setting strategy or organizationaloversight.

Fully

Governance & Ethics: Governance at JSR and Corporate Social Responsibility

4.1
4.2

Indicate whether the Chair of the highest governance body is also an executive officer.

Fully

Chair is JSR Micro's president

Fully

N/A

4.3

For organizations that have a unitary board structure, state the number and gender ofmembers of the highest governance body that are independent and/or non-executive
members.

Fully

Governance & Ethics: Governance at JSR

4.14

Mechanisms for shareholders and employees to provide recommendations or direction to
the highest governance body.
List of stakeholder groups engaged by the organization.

Fully

About the Report: Report Scope

4.15

Basis for identification and selection of stakeholders with whom to engage.

Fully

Stakeholder Engagement

4.16

Approaches to stakeholder engagement, including frequency of engagement by type andby stakeholder group.

Fully

Stakeholder Engagement

Letter from Our President

3. Report Parameters

4. Governance, Commitments, and Engagement

4.4

STANDARD DISCLOSURES PART III: Performance Indicators
REPORT FULLY ON 10 CORE OR ADDITIONAL PERFORMANCE INDICATORS - AT LEAST 1 FROM EACH DIMENSION (ECONOMIC, ENVIRONMENTAL SOCIAL)
Economic
Performance
Indicator

Description

Economic performance
Direct economic value generated and distributed, including revenues, operating costs,
employee compensation, donations and other community investments, retained earnings,
EC1
and payments to capital providers and governments.
EC2

Reported

Cross-reference/Direct answer

Not

Financial implications and other risks and opportunities for the organization's activities due Not
to climate change.

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EC3Coverage of the organization's defined benefit plan obligations.

Not

EC4

Significant financial assistance received from government.

Not

Market presence
Range of ratios of standard entry level wage by gender compared to local minimum wage at Not
EC5significant locations of operation.
Policy, practices, and proportion of spending on locally-based suppliers at significant
Not
EC6
locations of operation.
Procedures for local hiring and proportion of senior management hired from the local
Fully
EC7
community at significant locations of operation.

People, Performance & Promise: Hiring

Indirect economic impacts
EC8EC9Development and impact of infrastructure investments and services provided primarily for Not
public benefit through commercial, in-kind, or pro bono engagement.
Understanding and describing significant indirect economic impacts, including the extent of Not
impacts.
Environmental

Performance
Indicator

Description

Reported
Cross-reference/Direct answer

Materials
EN1

Materials used by weight or volume.

Partially

EN2

Percentage of materials used that are recycled input materials.

Not

Environmental: Environmental Goals and Challenges

Direct energy consumption by primary energy source.

Fully

Environmental: Managing our Energy & Carbon Footprint

Indirect energy consumption by primary source.

Fully

Environmental: Managing our Energy & Carbon Footprint

Energy saved due to conservation and efficiency improvements.

Partially

Environmental: Improving Energy Efficiency & Conservation

EnergyEN3
EN4EN5

Initiatives to provide energy-efficient or renewable energy based products and services, and Partiallyreductions in energy requirements as a result of these initiatives.
Initiatives to reduce indirect energy consumption and reductions achieved.
Not

Our Products

Total water withdrawal by source.

Fully

Environmental: Water
In FY12, total volume of water withdrawn was approximately 29,148 cubic meters (7,700,000 gallons).

EN9

Water sources significantly affected by withdrawal of water.

Not

EN10

Percentage and total volume of water recycled and reused.

Not
Not

EN12

Location and size of land owned, leased, managed in, or adjacent to, protected areas andareas of high biodiversity value outside protected areas.
Description of significant impacts of activities, products, and services on biodiversity inprotected areas and areas of high biodiversity value outside protected areas.

EN13

Habitats protected or restored.

Not

EN14

Strategies, current actions, and future plans for managing impacts on biodiversity.

Not

EN15

Number of IUCN Red List species and national conservation list species with habitats inareas affected by operations, by level of extinction risk.

Not

EN6
EN7
Water
EN8

Biodiversity
EN11

Emissions, effluents and waste
Total direct and indirect greenhouse gas emissions by weight.

Not

Fully

EN16
EN17
EN18
EN19
EN20
EN21

Other relevant indirect greenhouse gas emissions by weight.

Not

Initiatives to reduce greenhouse gas emissions and reductions achieved.

Partially

Emissions of ozone-depleting substances by weight.

Not

NOx, SOx, and other significant air emissions by type and weight.

Not

Total water discharge by quality and destination.

Not

Total weight of waste by type and disposal method.

Fully

Environmental: Materials and Waste.
In FY12, JSR disposed of 191.0 tonnes of waste (421,000 pounds). Hazardous waste was 82.1 tonnes(181,000 pounds), with 63.5 tonnes (140,000 pounds) recycled and 18.6 tonnes (41,000 pounds)
disposed off site. Non-hazardous waste was 108.9 tonnes (240,000 pounds), with 104.3 tonnes(230,000 pounds) recycled and 4.5 tonnes (10,000 pounds) disposed in municipal landfills.

Total number and volume of significant spills.

Fully

SafetyEN22

EN23

Environmental: Managing our Energy & Carbon Footprint.
In FY12, total C02e emissions were 2,994 tonnes (3,300 tons). Of this, direct emissions were 1,179
tonnes (1,300 tons) and indirect emissions were 1,814 tonnes (2,000 tons).

EN24

Weight of transported, imported, exported, or treated waste deemed hazardous under the Not
terms of the Basel Convention Annex I, II, III, and VIII, and percentage of transported waste
shipped internationally.

EN25

Identity, size, protected status, and biodiversity value of water bodies and related habitats
significantly affected by the reporting organization's discharges of water and runoff.

Environmental: Improving Energy Efficiency & Conservation

Not

Products and services
Initiatives to mitigate environmental impacts of products and services, and extent of impact Not
EN26
mitigation.
EN27

Percentage of products sold and their packaging materials that are reclaimed by category.

Not

Monetary value of significant fines and total number of non-monetary sanctions for noncompliance with environmental laws and regulations.

Fully

Significant environmental impacts of transporting products and other goods and materials
used for the organization's operations, and transporting members of the workforce.

Not

Total environmental protection expenditures and investments by type.

Not

Compliance
EN28

SafetyTransport
EN29
Overall
EN30

Social: Labor Practices and Decent Work
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Performance
Indicator

Description

Reported
Cross-reference/Direct answer

Employment
LA1

Total workforce by employment type, employment contract, and region, broken down bygender.

LA2

Total number and rate of new employee hires and employee turnover by age group, gender, Partiallyand region.

Our People: Hiring and Turnover

Benefits provided to full-time employees that are not provided to temporary or part-time
employees, by major operations.
Return to work and retention rates after parental leave, by gender.

Our People: Employee Benefits

LA3
LA15

Fully

Fully
Not

Labor/management relations
Percentage of employees covered by collective bargaining agreements.
LA4
LA5

Our People: A Diverse Workplace

Not

Minimum notice period(s) regarding significant operational changes, including whether it isspecified in collective agreements.

Occupational health and safety
Percentage of total workforce represented in formal joint management-worker health andsafety committees that help monitor and advise on occupational health and safety
LA6programs.

Not

Not

Rates of injury, occupational diseases, lost days, and absenteeism, and number of workrelated fatalities by region and by gender.

Not

LA7

Education, training, counseling, prevention, and risk-control programs in place to assist
workforce members, their families, or community members regarding serious diseases.

Not

LA8
LA9

Health and safety topics covered in formal agreements with trade unions.

Not

Training and education
Average hours of training per year per employee by gender, and by employee category.
LA10

Fully

LA11

Programs for skills management and lifelong learning that support the continued
employability of employees and assist them in managing career endings.

LA12

Percentage of employees receiving regular performance and career development reviews, Not
by gender.

Our People: Training & Development

Not

Diversity and equal opportunity
Composition of governance bodies and breakdown of employees per employee category
according to gender, age group, minority group membership, and other indicators of
LA13diversity.
Equal remuneration for women and men
Ratio of basic salary and remuneration of women to men by employee category, by
LA14significant locations of operation.

Partially

Our People: A Diverse Workplace andGovernance at JSR

NotSocial: Human Rights
Performance
Indicator

Description

Reported
Cross-reference/Direct answer

Investment and procurement practices
Percentage and total number of significant investment agreements and contracts thatNot
include clauses incorporating human rights concerns, or that have undergone human rights
HR1
screening.
Percentage of significant suppliers, contractors and other business partners that haveNot
HR2
undergone human rights screening, and actions taken.
HR3

Total hours of employee training on policies and procedures concerning aspects of humanrights that are relevant to operations, including the percentage of employees trained.

Non-discrimination
Total number of incidents of discrimination and actions taken.
HR4
Freedom of association and collective bargaining
Operations and significant suppliers identified in which the right to exercise freedom of
association and collective bargaining may be violated or at significant risk, and actions
HR5
taken to support these rights.

Not

Not
Not

Child labor
HR6

Operations and significant suppliers identified as having significant risk for incidents of child Not
labor, and measures taken to contribute to the effective abolition of child labor.

Forced and compulsory labor
Operations and significant suppliers identified as having significant risk for incidents offorced or compulsory labor, and measures to contribute to the elimination of all forms of
HR7forced or compulsory labor.
Security practices
Percentage of security personnel trained in the organization's policies or procedures
HR8
concerning aspects of human rights that are relevant to operations.

Not

Not

Indigenous rights
Total number of incidents of violations involving rights of indigenous people and actions
Not
HR9
taken.
Assessment
Percentage and total number of operations that have been subject to human rights reviews Not
HR10
and/or impact assessments.
Remediation
Number of grievances related to human rights filed, addressed and resolved through formal Not
HR11
grievance mechanisms.
Social: Society
Performance
Indicator

Description

Reported
Cross-reference/Direct answer

Local communities
Percentage of operations with implemented local community engagement, impact
SO1
assessments, and development programs.

Not

SO9

Operations with significant potential or actual negative impacts on local communities.

SO10

Prevention and mitigation measures implemented in operations with significant potential or Not
actual negative impacts on local communities.

Not

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Corruption
SO2
SO3

Percentage and total number of business units analyzed for risks related to corruption.

Not

Percentage of employees trained in organization's anti-corruption policies and procedures. Fully
Actions taken in response to incidents of corruption.

Not

SO5

Public policy positions and participation in public policy development and lobbying.

Not

SO6

Total value of financial and in-kind contributions to political parties, politicians, and related
institutions by country.

Not

SO4

Ethics and Code of Conduct

Public policy

Anti-competitive behavior
Total number of legal actions for anti-competitive behavior, anti-trust, and monopoly
SO7practices and their outcomes.

Not

Compliance
SO8

Monetary value of significant fines and total number of non-monetary sanctions for noncompliance with laws and regulations.

Not

Social: Product Responsibility
Performance
Indicator

Description

Reported
Cross-reference/Direct answer

Customer health and safety
Life cycle stages in which health and safety impacts of products and services are assessed Not
for improvement, and percentage of significant products and services categories subject to
PR1such procedures.
PR2

Total number of incidents of non-compliance with regulations and voluntary codes
concerning health and safety impacts of products and services during their life cycle, by
type of outcomes.

Product and service labellingType of product and service information required by procedures, and percentage ofPR3
significant products and services subject to such information requirements.

Not

Fully

Hazard Communication

Fully

Zero incidents

PR4

Total number of incidents of non-compliance with regulations and voluntary codes
concerning product and service information and labeling, by type of outcomes.

PR5

Practices related to customer satisfaction, including results of surveys measuring customer Not
satisfaction.

Marketing communications
Programs for adherence to laws, standards, and voluntary codes related to marketing
communications, including advertising, promotion, and sponsorship.
PR6

PR7

Total number of incidents of non-compliance with regulations and voluntary codes
concerning marketing communications, including advertising, promotion, and sponsorshipby type of outcomes.

Customer privacy
Total number of substantiated complaints regarding breaches of customer privacy andPR8losses of customer data.

Not

Not

Not

Compliance
PR9

Monetary value of significant fines for non-compliance with laws and regulations concerning Not
the provision and use of products and services.

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JSR Micro Inc. Sustainability Report 2012 | 1280 North Mathilda Avenue| Sunnyvale, CA 94089| United States
Phone 1. 408.543.8800 | Fax 1.408.543.8996 | email sustainability@jsrmicro.com | www.jsrmicro.com|
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