2018

Corporate Social Responsibility ReportTABLE OF CONTENTS
1

A Message From Our President

JSR & CSR
2
Our Company
3
Management Approach3
Corporate Social Responsibility and Ethics
IMPACT AND PERFORMANCE
4
Quality5-6Innovation
7
Health and Safety
8
Business Continuity Planning and Risk Management
9-10 Employee Vitality and Engagement
11
Environmental Footprint
13
Anticipating Compliance14
Supply Chain Management
ABOUT THIS REPORT
15
Report Information
16-21 GRI Content Index

We welcome
your feedback!

REPORTING PERIODThis CSR report covers the period FY2016-FY2017,
April 1, 2016 - March 31, 2018.
GRI STANDARDSThis report has been prepared in accordance with the GRI Standards:
Core option.
EXPLANATORY NOTEJSR Micro refers to JSR Micro, Inc., the Sunnyvale, California-based
operations for JSR Corporation.
JSR used alone may represent a broader selection of JSR Group
companies including, but not limited to, JSR Micro, Inc.

J S R M I C R O 2018 C S R R E P O R T

Please contact us at
sustainability@jsrmicro.com

A MESSAGE FROM OUR PRESIDENT
2016 and 2017 have been banner years for the global
semiconductor market, which grew by 25 percent. JSR Micro’s
semiconductor business has outpaced the industry, while wesimultaneously expanded into the high-growth area of advanced
cleans materials, but not without challenges. In our worldof ever-smaller microchip designs, our technical challenges
increase in a step function putting extraordinary pressureson quality and performance that may require us to revisit
assumptions, both technically and operationally.
As a result, our quality systems must also continuously evolveand improve to meet our customers’ ever-changing needs. In
doing so, we have started working more closely with our global
peer companies and supply-chain partners, investing significantly in technology, equipment,
skills and people.
These combined activities have, however, put a good deal of pressure on our employees,
who in many cases have delivered heroic efforts. As President, I recognized that that was
not a “sustainable” situation, and that there was an underlying risk to our company culture,
which is ultimately the source of our business success. That is why, under the guidance of
Stanford’s Center for Compassion and Altruism Research and Education, we created the Vitality
Initiative. Through this initiative we have started various projects to help mitigate the stress that
employees may experience, and to remain a learning company where employees feel excited,
inspired and energized in the work they do.
While our company has grown, we have successfully kept emissions in check. The systems
that we previously put in place allow us to run efficiently, and to grow without an increase inemissions. Our EHS department is always actively looking for ways to minimize or reduce ourenvironmental footprint.
Meanwhile, worldwide chemical legislation is increasing and becoming more stringent, requiring
JSR Micro and our customers to be much more conscientious about the materials we selectfor our products. To understand and anticipate environmental legislation, our EHS department
was educated in the EPA’s Sustainable Futures program. We also participated in a customer’s
Green Chemistry pilot program, and joined the EPA’s Onium Consortium, which supports further
research into photo acid generators, a class of chemicals that is essential to our business.
Corporate Social Responsibility (CSR) is a mindset and informs everything we do. In challenging
times, we find strength in our core values. Looking forward, we will continue to grow and adapt
with integrity, knowing that true success must be sustainable.

Sincerely,

Eric Johnson

J S R M I C R O 2018 C S R R E P O R T

PG • 1JSR AND CSR
OUR COMPANY
Located in Sunnyvale, California, JSR Micro’s core activity is the manufacture of high-quality semiconductor materials
for leading-edge customers in the semiconductor sector. Supporting the activities of our corporate parent JSR
Corporation, in the last decade we have expanded into the Life Science and Energy and Environment markets. We
serve the North American region, however, as a global company, we collaborate closely with our sister company in
Belgium and corporate headquarters in Japan.
2013

2014

2015

2016

2017

Total Employees

160

170

168

182

195

% Female

35%

36%

36%

34%

32%

Energy Consumption

7.9

8.1

7.9

8.2

8.2

Natural Gas Consumption

8.3

8.4

8.8

8.5

8.3

Total Energy Use

16.1

16.5

16.6

16.7

16.6

PEOPLE

ENERGY & EMISSIONS
Energy Consumption (million kWh)Greenhouse Gas (thousand metric tonnes of CO2 equivalent)*
Direct Emissions (Scope 1)

1.5

1.5

1.6

1.5

1.5

Indirect Emissions (Scope 2)

1.5

1.5

1.4

1.5

0.1

Total Emissions

3.0

3.0

3.0

3.0

1.6

Intensity (MtCO2 /unit of revenue)

0.023

0.020

0.020

0.017

0.016

Indoor Water Usage

4.0

4.8

4.3

4.3

4.8

Landscape Irrigation

4.6

4.0

2.0

2.1

2.2

Total

8.6

8.8

6.3

6.4

7.0

Non-Recycled**

4.3

4.3

3.9

3.1

3.1

Recycled

169.3

160.6

139.7

151.3

147.2

Waste Total

173.6

164.9

143.6

154.4

150.3

% Recycled

97.5%

97.3%

97.2%

98.0%

97.9%

Incineration

111.0

132.9

107.3

102.3

117.6

Other***

0.2

23.8

6.4

36.2

16.7

Hazardous Waste Total

111.4

156.7

113.7

138.5

134.3

% Incinerated

99.8%

84.8%

94.4%

73.9%

87.6%

WATER
Water Consumption (millions of gallons)

WASTE
Non-hazardous waste (metric ton)

Hazardous Waste (metric ton)

* To improve readability, this ratio is shown in metric tons of CO2 equivalent. The absolute numbers for greenhouse gas emissions are reported
in thousand metric tons of CO2 equivalent.		
** All non-recycled non-hazardous waste goes to landfill.			
*** Hazardous waste that is not incinerated is either recovered, neutralized or disposed in landfill.

PG • 2J S R M I C R O 2018 C S R R E P O R T

MANAGEMENT APPROACH
Balanced Scorecard
JSR Micro uses a Balanced Scorecard (BSC) to set the strategic direction of thecompany. The focus is not only on the bottom line, but on multiple aspects of thecompany, including financial performance, market success, process excellence
and learning and growth, allowing us to react to times of growth, as well as timesof challenge. The BSC goals are translated into department goals and individual
employee goals, so that every employee that works for JSR Micro understands
how they individually contribute to the company’s success.
Management Systems
JSR Micro’s management systems are ISO9001:2015, ISO14001:2015, and
OHSAS18001:2007 certified, covering quality, environmental management andcompliance, and the health and safety of our employees and customers. Our
third-party-verified management systems allow us to bring purpose and clarity
to company processes, anchoring accountability and responsibility within ouroperations. The “Plan-Do-Check-Act” cycle ensures reviews of past performanceand allows us to continually improve our business.
In March 2017 we transitioned to ISO’s new Quality and Environmental
standards. We are proud to share that there were zero observations or nonconformances during the certification audit.
Governance Structure
JSR Micro is a wholly-owned subsidiary of JSR Corporation (based on both directownership and indirect ownership through JSR Micro NV). JSR Micro’s Executive
Committee (EC) is responsible for developing business and operational strategy.
Through our board of directors, JSR Micro reports to JSR Corporation. In addition,
our operations are audited by our corporate parent’s internal auditing system.

CORPORATE SOCIAL RESPONSIBILITY AND ETHICS

CSR PRIORITY TOPICS
During the first three reporting cycles, wehave extensively consulted stakeholders tounderstand their priorities and the impactsof our business to identify key priority
topics. We have prioritized the aspects of
CSR that have the most significant impact,
influence stakeholder decisions and affect
JSR Micro’s long-term viability. The topics
present a complete picture of our relevant
impacts. In reviewing these priorities,
impacts and upcoming trends, we did not
find it necessary to revise our existing listof priority topics:• Quality• Innovation• Health and Safety• Economic Performance• Business Continuity Planning and Risk
• Employee Vitality and Engagement• Environmental Impact• Compliance• Supply Chain Management

To JSR Micro, CSR means conducting business in an ethical manner. As such,
CSR is a mindset that permeates all of JSR Micro’s business activities.
We strive not just to be in compliance, but also to be a good
corporate citizen – creating not only financial value, but also realvalue for all stakeholders involved. The commitment to quality,
safety, vitality and well-being of employees, and more, all contributeto our overall success.
On a practical level, the “JSR Group Principles of Corporate
Ethics” detail our company’s values, and provide a baseline for
ethical behavior. During the reporting period, several trainings were
provided to deepen our employees understanding of specific ethics
topics. One class that we provide to our employees and managers
is an annual, mandatory Anti-Corruption class that includes topics
such as: bribery, harassment, the JSR code of conduct, compliance,
privacy, Ethics Hotline and non-retaliation.
To engage employees in the CSR program and invite them totake further sustainability actions, we have provided awarenessworkshops on topics such as the environmental footprint.
J S R M I C R O 2018 C S R R E P O R T

PG • 3IMPACT AND PERFORMANCEQUALITY
As the semiconductor industry has advanced to 10nm nodes and beyond, thequality requirements for materials used in the semiconductor manufacturing
process take on new and ever more stringent dimensions.
To meet these requirements, our quality systems need to be continually
upgraded. In response, we have doubled our effort in engineering, which
has allowed us to react more quickly to customer needs, such as scaling up,
troubleshooting and supply chain management. This includes significant
investments in technology and skills, for example: advanced metrology,
analytics and developing new research capabilities. In addition, JSR Microis also continuing to work on improving statistical process control for
manufacturing processes to complement our already rigorous quality control.
Moreover, we continue to work closely with our peers from Japan to make
optimal use of our global resources and knowledge available within thecompany.

Ultimately,
quality is definedby our customers.
Global Quality Working Group
That is why
To align JSR’s global quality systems, we meet face-to-face with our sister
our customers’
factories and global headquarters on a semi-annual basis in the Global Quality
feedback is
Working Group. Topics that are addressed include factory safety, quality, cost invaluable. Duringcontrol, change control and sharing of best practices.
the reporting
period, we were the proud recipient of:

Quality and CSR
Quality, in combination with collaborative innovation, is the foundation of
our market success. Our focus on quality enables us to provide excellent
products that support our customers’ leading-edge technologies. Moreover, afocus on quality enables lean and efficient operations. This focus fits with our
CSR mindset, and translates into efficient use of environmental resources,
minimizing the impact of our operations and maximizing stakeholder value.

The Cost of Quality
The Cost of Quality (CoQ) focuses on three elements: prevention, appraisal andquality failures. By investing in prevention and appraisals, we aim to avoid thecost of failures in quality.
Performance
YEAR

FY13

FY14

FY15

FY16

FY17

% of Total Sales

4.95

3.32

3.49

3.36

3.44

PG • 4J S R M I C R O 2018 C S R R E P O R T• Intel’s 2016 Prestigious SupplierContinuous Quality Improvement Award• Intel’s 2017 Preferred Quality SupplierAward• On Semiconductor’s 2017 Perfect
Quality Platinum AwardINNOVATION: Semiconductor
The microchip is one of the most innovative and complex
technologies ever invented. Billions of transistors fit
into a space smaller than the tip of your finger, creating
the capability to process and store information on an
unprecedented scale. JSR Micro manufactures thematerials that enable the process through which atransistor pattern is imprinted on a silicon wafer.
Microchip designs follow the increasing needs forcomputing power. Memory needs continue to grow at
exponential rates to support sufficient storage spaceon smart devices and cloud-based servers. In addition,
processing capability must be sufficient to digest theselarge amounts of data. Today, leading-edge chip designs
work at atomic dimensions, creating a whole new levelof quality requirements for the entire manufacturing
process.
Full-stack Solutions
Traditionally, JSR Micro has been a market leader indeveloping advanced photoresists for leading-edge
semiconductor architectures. In more recent years, wehave diversified our product portfolio of semiconductormaterials. To support the quality requirements ofincreasingly complex chip architectures we have begun
providing our customers with “full stack” or “multilayer”
solutions by developing many of the materials essential
to building a pattern on a silicon substrate: organic
underlayers, silicon hardmasks, photoresists andtopcoats. In doing so, we are better able to understandthe interactions between the materials which allows us tobe more accountable for the overall quality of the stack.

Extreme Ultraviolet (EUV) Photoresist
EUV is the long-awaited technology that will enableeven-smaller semiconductor patterning, for the 7nm
node and beyond in a single processing step. To develop
the manufacturing infrastructure and quality control
capability needed for high-volume manufacturing of
EUV photoresist, JSR is working with the RMQC (Resist
Manufacturing & Quality Center), which is a joint venture
between JSR and imec. In the US, our researchers arecollaborating closely with customers to help develop
their EUV processes which will eventually be used inhigh-volume manufacturing.
Environmental Considerations in the Design Phase
Most of the decisions regarding the environmental
impact of a product are made during the initial design
review phase. When we design our products, we workto avoid certain materials that have a known broader
environmental footprint. In addition, JSR Micro ismaking efforts to optimize the solvent used in our
products so that the shot size can be minimized. This
enables better cost of ownership for the customer andless overall waste and usage.
Our customers show increasing concern about theenvironmental impacts of materials in JSR Micro’s
products. In addition, since the update of the
Toxic Substances Control Act (TSCA) in 2016, theEnvironmental Protection Agency (EPA) has increased
scrutiny on the materials that are allowed to be used in
the US market. To ensure that we select materials for our
products that do not provoke significant environmental
concerns, now or in the future, JSR Micro’s EHS
department works closely with the R&D department.

Advanced Cleans
After each etch step, a cleaning material is applied
to remove the residual residue left behind post-etch.
With the overall increased quality requirements of thesemiconductor manufacturing process, the requirements
for cleaning agents increases as well. Differentiating on
our quality expertise, JSR Micro has recently introduced
an advanced cleans solution to the market.

J S R M I C R O 2018 C S R R E P O R T

PG • 5INNOVATION: Energy and Environment

INNOVATION: Life Sciences Activities

In JSR’s Energy and Environment product segment,
JSR offers Lithium Ion Capacitors (LICs) and aqueous
binders to various markets in need of energy storage
solutions. The LICs can be charged and discharged
many times without losing capacity and combine ahigh energy density with high power density. They areused in medical devices, Voltage Sag Compensators(VSC) / Uninterruptible Power Supplies (UPS),
catenary-free tram systems and more.

As part of our global and long-term strategy, JSR
Corporation has invested significantly in our life
sciences business through various acquisitions. These
acquisitions enable us to develop better treatmentsfor patients quickly, and together support our broader
mission to develop materials that benefit people, theenvironment and society as a whole. In addition, byleveraging our expertise in semiconductor quality
standards, we are differentiating ourselves in the life
sciences market.

During the last two years, we have focused on reducing
the cost of our LICs and improving performance. We
expect to introduce a new version to the market in2019.
JSR’s aqueous binders eliminate the use of the toxic
solvent N-Methyl-2-pyrrolidone (NMP) from lithiumion battery manufacturing. They greatly reduce
manufacturing and environmental compliance costs
while improving battery performance.

PG • 6JSR Corporation is taking a global approach to integrate
our various life sciences acquisitions into the company
and culture. JSR Micro plays an active part in these
activities, and they are not restricted to our Sunnyvale
operations. In the future, the CSR activities and impactsof our Life Sciences businesses will be covered in this ora separate CSR Report.

J S R M I C R O 2018 C S R R E P O R T

HEALTH AND SAFETY
Four years ago, we successfully launched an initiative to increasesafety awareness among employees, and make this awareness part ofthe company culture, shaping the implicit expectations, assumptions
and behavior of all involved. To maintain a culture of safety, weorganize various ongoing activities and programs, such as the EHS
committee, the near-miss program, town-hall meetings and June
Safety Month.
EHS Committee
Our cross-functional EHS committee meets once a month to review
topical safety issues and conduct joint safety walks and inspections.
Members include representatives from every department. The EHS
committee helps increase safety awareness and lowers the thresholdfor employees to request assistance from the EHS team.

JSR Micro EHS committee

June Safety Month
Each June, many activities are organized to increase safety awareness.
In 2017, we invited speakers during brown bag lunch sessions,provided extra training and showed a movie on sustainability and foodwaste. We ended the month with the June Safety Fair, to which 13
vendors were invited including 24 Hour Fitness, an insurance provider
and a representative from Santa Clara Vector Control, among others.
Employees could even get a spa facial or massage.
Ergonomics
With most JSR employees working in offices, the greatest safety
risk is from ergonomic injuries. To avoid these, we have installed
ergonomic software that encourages employees to take breaks.
All workplaces are ergonomically assessed, and we have installed
more than 40 sit-and-stand desks. During June Safety Month, aprofessional ergonomist provided a workshop showing employees thebest postures for desk-work.

Ergo evaluation for injury prevention

Performance• All of JSR Micro’s employees are represented by the EHS committee.
• 100% of chemicals sold by JSR are assessed for health, safety and environmental impacts, andhave appropriate Safety Data Sheets (SDS) and labels. These are in compliance with the Globally
Harmonized System (GHS) and contain information on safe use and disposal.
• JSR Micro has been OHSAS 18001-certified since 2010.

“At the end of the year,
everybody understands that safety
is not just my job as an EHS
engineer, but it is also their job.
Safety means looking
out for everybody.”– Paulina

J S R M I C R O 2018 C S R R E P O R T

PG • 7

BUSINESS CONTINUITY PLANNING ANDRISK MANAGEMENT
The current world stage is increasingly more complex,
volatile and uncertain. Events such as extreme
hurricanes and flooding in the US, droughts, increased
forest fires, terrorist attacks in the EU and geopoliticaltensions, underline the need for careful consideration in
our plans for overall operations as well as our business
continuity planning (BCP). In light of these realities, ourcustomers are also putting more scrutiny on our BCP.
JSR Micro annually reviews its existing plans andconducts drills to test the plans in cooperation with
our sister companies in Belgium and Japan. During thereporting period, we have expanded those drills with the
manufacturing of test batches of product that would
normally be produced at another location.

Crisis Management
We hope that our BCP plans will help us to anticipate
and avoid crises. However, not every crisis can be
avoided, and when disaster occurs, it is important tobe prepared. To this end, we worked with an external
consultant to develop a crisis management plan. As
part of this project, the consultant presented us witha scenario and held a crisis drill. This enabled us
to identify gaps in our current plans and adjust theplans accordingly. JSR is implementing a schedule
to periodically revisit the plan to ensure that it iseffective and complete.
Responsible Business Alliance Risk Assessment
JSR Micro fills out the Responsible Business
Alliance (RBA) risk assessment annually. This is acomprehensive survey that covers a broad range of
CSR topics. Since we began responding to the survey,
JSR Micro has had a “low risk” score.

Risk Management
The revisions in the ISO9001 and ISO14001
management standards reflect the increased need forrisk awareness and mitigation. To meet the update’s
requirements, in FY17 we formally implemented a risk
management program. First, all departments mapped out
their processes and key process performance indicators
in “turtle diagrams.” This analysis generated a deep
understanding of core processes. Using this as a point of
departure, departments identified top risks by filling out
a ‘risk register’ and developed mitigations plans.

“The start of a new project
was much easier because
all the potential risks were mappedout beforehand. The implementation
went much quicker than before.”– Robert

PG • 8J S R M I C R O 2018 C S R R E P O R T

Promoting our Risk Management Program to employees

EMPLOYEE VITALITY AND ENGAGEMENTOver the course of 20 years, JSR Micro has grown from a startup in
the semiconductor industry to a market leader. Many of our employees
have been with us since the beginning, contributing to the feeling that
our colleagues are an extended family. We believe that our company
culture is the source of our success, and we will continue to nurtureand sustain a positive, healthy and inspiring workplace.

FY17 JSR BY THE NUMBERS

NumberNew Hire Rate

NumberTurnover Rate

FY13

19

13.0%

11

7.9%

FY14

21

12.0%

6

FEMALE

TOTAL

132

61

193

Temporary

1

1

2

LOCATION
Sunnyvale HQ

106

57

Other CA Office

2

2

163
4

Outside CA

25

3

28
195

AGE

EMPLOYEE TURNOVER

Year

MALE

Regular

195

Employee Development
All of our employees have personal development plans that are
reviewed annually, and their career paths highlight individual
opportunity. Our HR department extensively researches training needs
and, based on this assessment, offers a wide range of classes on an
individual or group basis.
NEW EMPLOYEE HIRESCONTRACT TYPE

Under 30

17

9

26

Age 30-50

69

31

100

Over 50

47

22

69
195

RACE

4.0%

Asian

64

41

105

7

2

9

FY15

18

11.0%

10

6.0%

Black/African American

FY16

24

13.0%

15

8.0%

Hispanic/Latino

14

3

17

FY17

34

17.0%

14

7.0%

White

44

13

57

Other

4

3

7

PEOPLE2016

2017

Total Company

182

195

Total Female Employees

62

62

195

In order to gain a baseline assessment, and to
identify focus points for the Vitality initiatives, in
FY17 we adjusted our employee survey to include
three vitality measurements based on Vitality,
Energy Management and Learning and Growth.
Based on the results, several projects
were initiated:

The Vitality Initiative
In the last two years, the company has grown quickly, and this has
put a strain on some employees. In order to manage the company’s
growth successfully, and to support our employees, JSR’s executive• Increased strategic hiring of new employees
level committee has worked with Stanford University’s Center for
Compassion and Altruism Research and Education (CCARE) to develop • Lunch and Learn sessions with internalor external speakers on topics such asa “Vitality Initiative.” Vitality combines learning and development,
mindfulness and stress management
energy management and facilitating a positive and inspiring• Improved communication on the topic ofworkplace, for example, by encouraging adequate breaks and building
Vitality including bi-weekly Vitality Minutes,
appreciation and positive feedback into meetings. CCARE’s researcha new Vitality web page on our intranet,shows that companies that invest in vitality significantly increase
Vitality resources, increased awareness of
employee satisfaction and reduce employee burnout.
our Employee Assistance Program that offers
several services, etc.
• Training for managers on how to give
positive feedback• Exploring various solutions to the challengeof long commutes, such as flexible working
hours, telecommuting when possible andother commuting options.
• Vitality Volunteering MonthJ S R M I C R O 2018 C S R R E P O R T

PG • 9“We seldom get achance to meet as a groupsince we all travel a lot. We madestuffed bears for ‘project in a box’that will be distributed to local
hospitals and shelters. It was goodto just sit around and enjoying lunch
and chatting together. Everyone
had fun and we had a lot of
good-natured conversations
and laughter.”– CherryMark Davis flew with the Commemorative Air Force (CAF) to deliver supplies such as water, food, cleaning,and even dog food to flooded areas in Texas.

J S R M I C R O 2018 C S R R E P O R T

J S R M I C R O 2018 C S R R E P O R T
FY17

FY16

FY15

FY14

FY13

Thousands of Metric Tons of C02e4

32

DirectEmission

987Indirect
Emission

FY17

FY16

FY15

FY14

FY13

Millions of kWh
9Energy Consumption Per Year

8

7

6

5

4

3

2

1

0

10

Greenhouse Gas Per Year

6

5

1

0

Hazardous Waste Per Year
180
160

120

Metric Tons

Metric Tons

140

100
80
60
40
20

FY17

FY16

FY15

Non-Hazardous Waste Per Year

Hazardous Waste Per Year
180

200

160

180

140

160

120

Metric Tons

100
80
60
40

140
120
100
80
60

FY17

FY16

FY13

FY17

FY16

FY15

FY14

0

FY13

20

0

FY15

40

20

FY14

Metric Tons

FY14

FY13

0

Water Consumption Per Year
Indoor
Water Usage

10

8
7
6
5

Outdoor
Water Usage

Millions of Gallons

9

4
3
2
1

PG • 12J S R M I C R O 2018 C S R R E P O R T

FY17

FY16

FY15

FY14

FY13

0

ANTICIPATING COMPLIANCE
The laws and regulations of a country or community
represent, at a basic level, the expectations of society.
That is why CSR starts with, but is not restricted to,complying with rules and regulations. Since April 2017,
JSR Micro has had an executive-level Compliance
Committee that oversees the compliance processes ofdifferent departments within the company.
Anticipating Legislation
With the adoption of the 2016 Frank R. Lautenberg
Chemical Safety Act, the requirements for importingnew chemicals to the US market became more rigorous.
Simultaneously, worldwide, environmental and chemicallegislation is also increasing. In light of this, ourcustomers show a heightened interest in the materials
we select for product development. In response, ourEHS department is working more closely with our R&D
department to ensure that the materials selected do not
trigger any environmental concerns and will be approved
for manufacturing in higher quantities.
Green Chemistry Pilot
For one of our customers, we have participated in a
“Green Chemistry” pilot program, in which we tested
a tool that evaluates the materials in our products
and identifies regulatory liabilities for the ingredients.
After the conclusion of that tool pilot, we committed
to participate in an additional “Green Chemistry” pilot
where we will engage some of the learnings from theSustainable Futures program described below. Thisadditional pilot will conclude at the end of 2018.
Sustainable Futures Program
The Environmental Protection Agency (EPA) has
developed various screening tools and computerized
models to predict the toxicological properties andenvironmental effects of materials. Through the
Sustainable Futures program, the EPA offers educational
workshops that teach these approaches to chemicaldevelopers. JSR Micro’s EHS department engaged inthis program and has integrated the EPA toxicologicalassessment approaches into two tools - one for polymers,
and one for smaller-molecule substances. Multiple

members of the EHS department are now trained in theuse of these tools, and they are now applied to all new
chemical applications. Using the EPA’s modelling tools
helps us take a precautionary approach in chemical
selection.
The Onium Consortium
Onium-containing photoacid generators (PAGs) arevital to the functionality of all photoresist products.
In recent years, the EPA raised concerns about thisclass of chemicals and stopped permitting Low Volume
Exemptions (LVEs) for new applications of thesematerials.
Along with a group of semiconductor chemical suppliersand customers, JSR Micro joined the Onium Consortium
to collaborate closely with the EPA in defining atesting strategy for the environmental and healthimpacts of onium PAGs. We are conducting much
more detailed environmental studies on a selectionof five representative onium PAGs. Selecting just five
representative onium PAGs will allow us to generateenough data to strengthen EPA’s predictive modelingfor the entire chemical category while minimizing costs
and resource utilization. Following the outcome of thesetests, we will have the parameters to ensure that wedevelop materials that will be environmentally safe.

Performance• There were $0 fines for non-compliance withenvironmental laws and regulations in FY16
or FY17.
• During the reporting period, JSR Micro has
not experienced a regulatory or non-regulatory
health and safety compliance issue for any ofour products.
• During the reporting period, there havenot been any chemical label or SDS
noncompliance violations.

“I am very excitedabout the Sustainable
Futures program. This enables us
to understand the toxicologicalproperties before we submit
an application, providing a
lot more insight into the EPA’s
considerations for approvalor disapproval.
– Virginia
J S R M I C R O 2018 C S R R E P O R T

PG • 13

SUPPLY CHAIN MANAGEMENT
The transition of the semiconductor industry to eversmaller technology nodes has increased the quality
requirements of the materials we source. To be able tomanufacture products with consistent performance, we
are working closely with suppliers to control the quality,
scale-up and availability of our products. As the raw
materials need to be controlled for contaminations offewer than one part per billion, the quality systems of
our suppliers need to be as high-performing as our own.

IN

EXTRACTION
OF RAW
MATERIALS(CRUDE OIL)FLUENCEPRODUCTION
OF RAW
MATERIALSJS

TRANSPORTATION(POLYMERS)CON

Supplier Diversity
As a Japanese-owned American company locatedin the heart of Silicon Valley, with sister companies
in the EU and Japan, we have a workforce that
represents our community. At JSR Micro, we greatly
value the benefits of our diverse workforce. Wheneverpossible, we aim to stimulate the same diversity with
our suppliers and vendors. To this end, we developed
diversity-minded buying instructions for company
purchases, and are looking for opportunities toengage with diverse suppliers. 				TR AC IVITY

MANUFACTURINGOF
SEMICONDUCTOR
MATERIALSIN

DISTRIBUTION

CON

TROL

FLUENCE

END USEBY B2BCUSTOMER

END
OF
LIFE

VALUE
CHAIN

TROL

Responsible Business AllianceTo manage the CSR impacts in our supply chain, we
joined the Responsible Business Alliance (RBA, formerly
Electronic Industry Citizenship Coalition) in 2012. The
RBA code of conduct comprises a comprehensive rangeof CSR impacts, including ethics, labor conditions,human rights, conflict minerals, health and safety andenvironmental management. We incorporated theserequirements in our new supplier evaluation, suppliercontracts and audit protocols. All of JSR Micro’s key
suppliers have endorsed the RBA code of conduct. To
assess compliance, in the 4th quarter of FY17 we sentout a CSR survey to key suppliers. The results will be
published in the next CSR report.
CSR Audit Training
JSR Micro uses an elaborate audit protocol for its
supplier audits. To be better prepared to assess thematurity of suppliers’ CSR programs, JSR Micro’s
auditors participated in a training.

Performance• 100% of new suppliers screened on CSR criteria.
• All of JSR Micro’s key suppliers have endorsed
the RBA code of conduct.

“The training definitely
helped me identify things to ask
the auditee on environment,social, and governance items that
I wasn’t familiar with. Things likehow sustainable the system is,
executive management involvement,
whistleblower policy, proactive
risk minimization, etc.”– Joe

PG • 14J S R M I C R O 2018 C S R R E P O R T

ABOUT THIS REPORT
Report Information
Boundaries
The boundary for all aspects of CSR, except for environmental impact and supply chain management, is JSR
Micro’s organization. Reporting on environmental impact is confined to the Sunnyvale facilities. The supply chain
falls outside of our boundaries, though we do try to influence CSR behavior through our supplier relations.
In 2018, we expanded our external laboratory and it is in full compliance. JSR Micro’s EHS department visits thelab monthly for EHS inspections and has applied for all relevant permits. There is not yet any data available on the
new lab’s performance, hence it is excluded from the scope.
In FY2016, JSR Micro acquired a majority share of MBLI. Because we are still in the process of aligning andintegrating this company within the broader JSR Group, the organization is excluded from the scope of this report.
In the future, JSR intends to begin reporting on Life Sciences pursuits separately.
Assurance
JSR Micro did not pursue independent assurance for this report. However, all of the data published in this report
is derived from our management systems, which are certified by independent third parties. In addition, various
independent third parties, such as customers, the California Green Business Program, Bay Area Air Quality
Management District and the City of Sunnyvale, routinely audit JSR Micro’s site.
Changes in Reporting
During the reported period, ‘Vitality’ was introduced as an executive-level initiative. Many of our previous
development activities now fall under the Vitality initiative, therefore we renamed the CSR priority topic from
‘Employee Development and Engagement’ to ‘Employee Vitality and Engagement’.

J S R M I C R O 2018 C S R R E P O R T

PG • 15

GRI CO NTEN T I N D E X
GENERAL DISCLOSURESGRI Standard

Disclosure #Disclosure
Description

GRI 102: General
Disclosures 2016

102-1

Name of theOrganization

102-2

Activities,
Brands,
Products, andServices

102-3

Location of
Headquarters

JSR Micro Inc.’s headquarters is located at:
1280 N. Mathilda Avenue
Sunnyvale, California 94089, USA
The headquarters of our corporate parent is located in Tokyo, Japan.

102-4

Location of
Operations

Ibid.

102-5

Nature ofOwnership andLegal Form

Privately held corporation

102-6

Markets Served

Our Company,
Page 2

Our activities span the North American region, serving clients in thesemiconductor, pharmaceutical, clinical research and various markets inneed of clean energy solutions.

102-7

Scale of theOrganization

Our Company,
Page 2
Employee
Engagement,
Page 9Partial disclosure. Reason for omission: Confidentiality restraints. Financial
and production information is omitted because it is confidential. Ourparent company JSR Corporation publishes an annual report that includes
JSR Micro’s performance. Refer to the Fine Chemicals and Other ProductBusiness section of JSR Corporation’s 2016 and 2017 Annual Report:
http://www.jsr.co.jp/jsr_e/ir/annual_csr_re
http://www.jsr.co.jp/jsr_e/ir/annual_csr_report.shtml

102-8

Information on
Employees andOther Workers

Employee
Engagement,
Page 9Regular employees work under an indefinite employment status. JSR Microhas one female, part-time employee. A substantial portion of JSR Micro’s
work is not performed by workers who are legally recognized as selfemployed or by individuals other than employees or supervised workers.

102-9

Supply Chain

Supply Chain
Management,
Page 14102-10Significant
Changes to theOrganization and
its Supply Chain

102-11

Precautionary
Principle

102-12

PG • 16

External
Initiatives

Page Number
and/or URL(S)Direct Answer / Reason For Omission
JSR Micro, Inc.

Our Company,
Page 2Innovation,
Page 5-6

www.jsrmicro.com

JSR Micro’s external laboratory was expanded in 2018. A majority share in
MBL International Corporation (MBLI) was acquired in April 2016.

Anticipating
Compliance,
Page 13
ISO9001:2015
ISO14001:2015
OHSAS18001:2007
Responsible Business Alliance (RBA), formerly known as the Electronic
Industry Citizenship Coalition (EICC).
Through JSR Corporation, JSR Micro is a member of the UN Global
Compact and partakes in the Responsible Care Program.

J S R M I C R O 2018 C S R R E P O R T

GRI CO NTEN T I N D E X
GENERAL DISCLOSURESGRI Standard

Disclosure #Disclosure
Description

Page Number and/
Direct Answer / Reason For Omission
or URL(S)GRI 102: General
Disclosures 2016

102-13

Membership of
Associations

102-14

Statementfrom Senior
Decision-Maker

102-16

Values,Principles,Standards,
and Norms of
Behavior

Corporate Social
Responsibility andEthics, Page 3

CSR Policy: https://www.jsrmicro.com/about-jsr/corporate-socialresponsibility/csr-policy
Corporate Code of Conduct: http://www.jsrmicro.com/index.php/About/
CSR_Main/CofConduct/
For a detailed explanation, see our 2012 CSR Report page 15 and 2014
CSR Report page 19.

102-18Governance
Structure

Governance
Structure,
Page 3The Vitality
Initiative, Page 9
Anticipating
Compliance,
Page 13

JSR Micro has an executive-level Compliance Committee and an executivelevel Vitality Committee.

102-40

List of
Stakeholder
GroupsEmployees, customers, business partners, industry associations,
government and regulatory agencies and the local community.

102-41

Collective
Bargaining
Agreements

No portion (0%) of the workforce is covered by collective bargaining
agreement.

102-42

Identifying
and Selecting
Stakeholders

We engage proactively and continuously with stakeholders that critically
influence our success: employees, customers, business partners, industry
associations and government regulatory agencies. In addition, we arealso responsive to the requests that we receive from stakeholder groups
with which we have less frequent contact, such as neighbors, the local
community and NGOs.

102-43

Approach to
Stakeholder
Engagement

For a detailed overview of approaches to stakeholder engagement, see
CSR Priority Topics,
our 2014 CSR Report, page 65. See link: https://www.jsrmicro.com/sites/
Page 3default/files/attachments/jsr_micro_inc_2014_csr_report.pdf

Semiconductor Equipment and Materials International (SEMI)International Microelectronics Assembly and Packaging (IMAPS)SPIE - the international society for optics and photonics
Semiconductor Industry Association (SIA)
A Message From
Our President,
Page 1

102-44

Key Topics andConcerns Raised

Concerns about the following topics have been raised by various
stakeholders: Business continuity planning, supplier diversity, conflictminerals, future legislative requirements, green chemistry practices,
alternatives assessments and environmental impacts of Onium-containing
photoacid generators (PAGs).

102-45

Entities
Included in theConsolidated
Financial
Statements

JSR Micro Inc.
MBL International Corporation (MBLI). MBLI is not covered by the report.

102-46

Defining Report
Content andTopic Boundaries

CSR Priority Topics,
Page 3
Report Information,
Page 15

102-47

List of Material
TopicsCSR Priority Topics,
Page 3The boundary for all aspects of CSR, except for environmental impact
and supply chain management, is JSR Micro’s organization. Reporting on
environmental impact is confined to the Sunnyvale facilities. The supply
chain falls outside of our boundaries though we do try to influence CSR
behavior through our supplier relations. JSR’s recent acquisition, MBL
International Corporation (MBLI), is excluded from the scope of this report.

J S R M I C R O 2018 C S R R E P O R T

PG • 17

GRI CO NTEN T I N D E X
GENERAL DISCLOSURESGRI Standard

Disclosure #GRI 102: General102-48Disclosures 2016

Disclosure
Description

Page Number
and/or URL(S)Direct Answer / Reason For Omission

Restatements ofInformation

There were no restatements of information.

102-49Changes in
ReportingDuring the reported period, ‘Vitality’ was introduced as an executive-level
initiative. Many of our previous development activities now fall under
the Vitality initiative, therefore we renamed the CSR Priority Topic from
‘Employee Development and Engagement’ to ‘Employee Vitality andEngagement’.

102-50

Reporting Period

FY2016-FY2017 April 1, 2016 - March 31, 2018102-51

Date of Most
Recent Report

January 2017102-52

Reporting Cycle

Biennial

102-53

Contact Point
for Questions
Regarding theReportPhyllis Moracco
Human Resources Director
Phone: +1 (408) 543-8800
Fax: +1 (408) 543-8873
Email: sustainability@jsrmicro.com

102-54Claims ofReporting on
Accordancewith the GRI
Standards

Table of Contents

102-55GRI Content
Index

GRI Content
Index, Page
16-21

102-56External
Assurance

JSR Micro does not have a policy for external assurance, nor did JSR Microseek external assurance for this report.

SPECIFIC DISCLOSURES

Quality
GRI 103:
Management
Approach 2016

103-1
103-2
103-3

Company-specificIndicator

Cost of
Quality

PG • 18

Management
Approach toMaterial Topic

CSR Priority
Topics, Page 3
Management
Approach,
Page 3
Quality, Page 4

For 103-1 b. see response to disclosure 102-46.

Quality, Page 4

J S R M I C R O 2018 C S R R E P O R T

GRI CO NTEN T I N D E X
SPECIFIC DISCLOSURESGRI Standard

Disclosure #Disclosure
Description

Page Number
and/or URL(S)Direct Answer / Reason For Omission

Management
Approach toMaterial Topic

CSR Priority
Topics, Page 3
Management
Approach,
Page 3Innovation,
Page 5-6

For 103-1 b. see response to disclosure 102-46.

Innovation
GRI 103:
Management
Approach 2016

103-1

Company-specificIndicator

Indicator
OmittedReason for omission: Confidentiality restraints. Our approach to staying
innovative is confidential. Innovations we introduce to the market are
indicative of our innovative capabilities.

Health and Safety
GRI 103:
Management
Approach 2016

GRI 403:
Ooccupational
Health and Safety
2016

GRI 416:
Customer Healthand Safety 2016

GRI 417:
Marketing andLabeling 2016

103-1
103-2
103-3

Management
Approach toMaterial Topic

CSR Priority
Topics, Page 3
Management
Approach,
Page 3
Health and
Safety, Page 7

403-1

Workers
Representationin Formal Joint
Management–
Worker Healthand Safety
Committees

Health and
Safety, Page 7

100% of the workforce is represented by our EHS committee. Minutes
and presentations from the EHS committee meetings are shared on theintranet and are sent by email to all managers.

416-1

Assessment of
the Health and
Safety Impactsof Productand Service
Categories

Health and
Safety, Page 7

100% of chemicals sold by JSR are assessed for health, safety andenvironmental impacts.

417-1

Requirements
for Productand Service
Information andLabeling

Health and
Safety, Page 7

Safety data sheets (SDS) and labels are developed for all R&D samples
and commercial products shipped to customers, including information forsafe use and disposal. Safety data sheets and labels are in compliancewith the Globally Harmonized System (GHS) and contain information onsafe use and disposal.

CSR Priority
Topics, Page 3
Management
Approach,
Page 3
A Message From
Our President,
Page 1

For 103-1 b. see response to disclosure 102-46.

For 103-1 b. see response to disclosure 102-46.

Economic Performance

GRI 103:
Management
Approach 2016

Company-specificIndicator

103-1
103-2
103-3

Indicator
OmittedManagement
Approach toMaterial Topic

Reason for omission: Confidentiality restraints.
Financial information is omitted because it is confidential; it is reported tointernal stakeholders. As a private company and a wholly owned subsidiaryof JSR Corporation, JSR Micro does not publish financial data or financial
statements. However, our parent company’s annual reports include JSR
Micro’s performance. Refer to the Fine Chemicals and Other ProductBusiness section of JSR Corporation’s 2016 and 2017 Annual Report:
http://www.jsr.co.jp/jsr_e/ir/annual_csr_report_2016.shtml
http://www.jsr.co.jp/jsr_e/ir/annual_csr_report.shtml

J S R M I C R O 2018 C S R R E P O R T

PG • 19

GRI CO NTEN T I N D E X
SPECIFIC DISCLOSURESGRI Standard

Disclosure #Disclosure
Description

Page Number
and/or URL(S)Direct Answer / Reason For Omission

Management
Approach toMaterial Topic

CSR Priority
Topics, Page 3
Business
Continuity
Planning and Risk
Management,
Page 8For 103-1 b. see response to disclosure 102-46.

BCP and Risk
GRI 103:
Management
Approach 2016

Company-specificIndicator

103-1
103-2
103-3

Business
Continuity
Planning and Risk
Management,
Page 8Annual
Risk Review

Employee Vitality andEngagement

GRI 103:
Management
Approach 2016

103-1
103-2
103-3

Management
Approach toMaterial Topic

CSR Priority
Topics, Page 3
Management
Approach, Page 3
Employee Vitality
and Engagement,
Page 9-10

GRI 401:
Employment 2016

401-1

New Hires andTurnover

Employee Vitality
and Engagement,
Page 9-10

Due to the small size of JSR Micro’s workforce, segmentation of
employee turnover data by age, gender and region is not calculated.

404-3

Performanceand Career
Development
Reviews

Employee
Development,
Page 9100% of our employees have personal development plans that are
reviewed annually.

Management
Approach toMaterial Topic

CSR Priority
Topics, Page 3
Management
Approach, Page 3

For 103-1 b. see response to disclosure 102-46.

306-2

Waste by Typeand Disposal
MethodWaste Awareness,
Page 12Waste disposal methods provided by waste contractors FRG Waste
Resources and Clean Harbors.

306-3

Significant Spills

GRI 404: Training
and Education2016

For 103-1 b. see response to disclosure 102-46.

Environment
GRI 103:
Management
Approach 2016

103-1
103-2
103-3

Waste
GRI 306:
Effluents andWaste

JSR Micro has never had a hazardous substance spill that was significant
enough to threaten human health, land or water bodies.

EnergyGRI 302: Energy

PG • 20

302-1

EnergyConsumption
Within the
Organization

Environmental
Footprint,
Page 11

Data Source: PG&E energy bills. 33% and 33% of PG&E’s energy mix
in 2016 and 2017 respectively consisted of renewable energy sources.
In June of 2017, JSR Micro joined Silicon Valley Clean Energy, buying
electricity that is 50% renewable and 50% from hydroelectric sources.

J S R M I C R O 2018 C S R R E P O R T

GRI CO NTEN T I N D E X
SPECIFIC DISCLOSURESGRI Standard

Disclosure
Description

Page Number and/or URL(S)Direct Answer / Reason For Omission

305-1

Direct (Scope 1)
GHG Emissions

Energy andGreenhouse Gas
Emissions, Page 11

Data Source: Conversion factors provided by PG&E. Only CO2 gases were
included in the calculation and no offsets were used to meet targets.
Emissions from company vehicles are excluded from this calculation.

305-2

Energy Indirect(Scope 2) GHG
Emissions

Energy andGreenhouse Gas
Emissions, Page 11

Ibid.

305-4

GHG Emissions
Intensity

Energy andGreenhouse Gas
Emissions, Page 11

The GHG emissions intensity includes Scope 1 and Scope 2 emissions.
Only CO2 gases were included in the calculation.

Water Withdrawal
by Source

Water, Page 12

Data Source: Municipal water bills.

103-1
103-2
103-3

Management
Approach toMaterial Topic

CSR Priority Topics,
Page 3
Management
Approach, Page 3
Anticipating
Compliance,
Page 13

For 103-1 b. see response to disclosure 102-46.

307-1

Non-ComplianceWith
Environmental
Laws and
Regulations

Anticipating
Compliance,
Page 13

There were $0 fines in FY16 or FY17.

416-2

Incidents of
Non-Compliance
Concerning
the Health and
Safety Impactsof Products andServices

Anticipating
Compliance,
Page 13

During the reporting period, JSR Micro has not experienced a regulatory or
non-regulatory health and safety compliance issue for any of our products.

417-2

Requirements
for Productand Service
Information andLabeling

Anticipating
Compliance,
Page 13

During the reporting period, there have not been any chemical label or
SDS noncompliance violations.

For 103-1 b. see response to disclosure 102-46.

100% of new suppliers were screened on CSR criteria, including
Human Rights.
0% of supplier audits during the reporting period included CSR aspects.
103-1 c: The Supply Chain falls outside of our company boundaries
though we do try to influence CSR behavior through our supplier relations.

Disclosure #Emissions

GRI 305:
Emissions

Water
GRI 303: Water

303-1

Compliance
GRI 103:
Management
Approach 2016

GRI 307:
Environmental
Compliance

GRI 416:
Customer Healthand Safety

GRI 417:
Marketing andLabeling

Supply Chain Management
GRI 103:
Management
Approach 2016

GRI 414:
Supplier Social
Assessment

103-1
103-2
103-3

Management
Approach toMaterial Topic

CSR Priority Topics,
Page 3
Management
Approach, Page 3
Supply Chain
Management,
Page 14414-1

New Suppliers
That Were
Screened Using
Social Criteria

Supply Chain
Management,
Page 14J S R M I C R O 2018 C S R R E P O R T

PG • 21

NORTH AMERICA

JSR Micro, Inc.
1280 North Mathilda Avenue
Sunnyvale, CA 94089, USA
PHONE 1-408-543-8800
sustainability@jsrmicro.com
jsrmicro.com

Please consider the environment before printing this report.