2019
CSR REPORT1

JSR MICRO CSR REPORT 2019

Contents.

Message fromthe President.

01

About this report

02

Message from the President

03-06

Introducing JSR Micro

07-09

JSR Micro: a culture of care for our employees

10

Finding ways to improve mobility

11

Health & Safety

12

Extending excellent quality

13

Innovation: our core competence

14

The next generation

15

Product stewardship through compliance

16Managing environmental impacts

17

Business Continuity Planning and risk management18

Responsible supply chain management

19-24

2019 GRI Content Index

About this report.
REPORTING PERIODThis CSR report covers the period from April 1, 2017, to March 31, 2019.

GRI STANDARDSThis report has been prepared inaccordance with the core option of
the Global Reporting Initiative (GRI)
Standards.

ASSURANCE
We did not pursue external
assurance. However, most of thedata contained in this report was

tracked in management systems thatare certified by independent third
parties.

EXPLANATORY NOTEJSR Micro denotes the JSR Micro
NV operations located in Leuven,
Belgium. JSR may represent a
broader selection of JSR groupcompanies, including JSR Micro NV.

2

JSR MICRO CSR REPORT 2019

WE WELCOME YOURFEEDBACK!
If you have questions orsuggestions, please do nothesitate to contact our CSR
coordinator.
Contact: Katleen Gorissen
E-mail: CSR@jsrmicro.beIn the past two years ourcompany went througha process of change in all
its aspects, so thoroughthat it is unlikely it will
ever happen again.

For this third edition of our CSR
report, we once again look backon two years. As the saying goes,nothing is certain but the fact thateverything changes. In the past two
years our company went through aprocess of change in all its aspects,
so thorough that it is unlikely it will
ever happen again. From being a
relatively small production unit
serving the semiconductor business
in Europe with our own products andimported JSR products, we evolved
into being a global provider of someof the most advanced products inthis sector; on top of that, we took on
a new global manufacturing role inbioprocess products with Amsphere™
Protein A resin.
These activities make our drive
toward sustainability even more
important, as we not only show
steady growth, but also ourimpact is felt more widely. In thesemiconductor sector, we continue
to play our role in enabling
technological progress. We see this
sector striving toward not only denser
integration of functionality but also
toward applications in the medical
domain that improve people’s lives.

The scope extends into enabling
society, providing a multitude ofsensor-based applications, manyof which have an impact on energy
consumption, avoiding pollution,and other aspects of sustainability.
In the life sciences domain, ourproducts contribute to the callfor affordable medicines for all by
improving efficiency and cost in the
production process. Of course, a CSR
report should be about the efforts
that we ourselves made in terms ofsustainability, but it is clear that our
direction and boundary conditions
both align with the expectations ofyou, our stakeholder. With that inmind, we present a summary of ouractivities in this report. We hopethat we may receive in turn youropen feedback and guidance on theimportant aspects for the two years
to come.
Sincerely,

Bart Denturck

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JSR MICRO CSR REPORT 2019

JSR MICRO CSR REPORT 20194

Introducing
JSR Micro.
JSR Micro is a materials innovation company withroots in the production of specialty chemicals forthe semiconductor industry. In the last decade, webranched out into the life sciences and emerging
energy and environment markets. We are located in
Leuven, Belgium, and we deliver products to customers
in the EMEA market and Singapore. Through close
cooperation with our sister companies in Asia and theUnited States, we achieve a global reach.

A company in motion
During the reporting
period, JSR Micro grewconsiderably. In 2017,
we produced the firstbatch of leading-edge
EUV photoresist for our
semiconductor clients.
Simultaneously, a new production line for Amsphere™
Protein A was built for our life sciences activities.
To accommodate the growth, a new building wasconstructed for offices, labs, and warehousing. Thesemajor projects required constant learning, adaptation,and resilience in the face of change.

Managing change: 6 “batteries”
Constant change is a sign of the times, and being able
to manage change effectively is a key attribute ofsuccessful companies. To support responsible growth,
we have reviewed and updated our management
systems, using the “batteries of change” approach.
The “batteries” are six factors that determine thetotal “energy level” of an organization. It is a practicalframework for reinforcing any company. A company
with its six batteries filled will be able to cope with
rapid and large change. By reviewing them regularly,
we keep a pulse on the dynamics of constant change.
The following overview lists the “batteries” and theinitiatives that we have taken up to strengthen theresilience of our operations.

1

Clear strategic direction
The vision, mission, and strategy were updated
and reformulated. Strategic objectives were
defined for the period to 2023.
Ambitious top teamThe leadership team was expanded from 3 to 6
members, an Executive Committee was founded,
and gathered every month. The Balanced Scorecard(BSC) was implemented in all departments of theorganization.
Management infrastructure
A weekly department-heads meeting waslaunched as an open forum for information
sharing and discussion. A KPI system was introduced inlevels: Level 1, companywide; Level 2, departmental.
Action planning and implementation
We started with portfolio management,
appointing a coordinator who helps departments
introduce projects with the right categorization to aportfolio board. This prioritizes and facilitates project
execution. We started working with squads: small,independent, cross-functional teams dedicatedto addressing or solving a specific issue in a shorttime frame. We realized a complete overhaul of our
ICT infrastructure, responding to a manifest call for
efficiency from all levels of the organization.
Healthy culture
We conducted a culture survey to actively solicit
employee feedback. The resulting values arepromoted by a companywide campaign with mascots
and cartoons that illustrate examples.
Connection with employees
Communication with employees was increasedin monthly “Newsflashes”. A direct line tomanagement was created for questions, remarks,
suggestions, criticism, and discussions through asoftware platform (U&I).

For more information, see the book Six Batteries of Change: Energize Your Company by Peter de Prins, Geert Letens, and Kurt Verweire of the Vlerick Business School.

Culture survey: shared company values, now and in the future
In a survey conducted to assess our company culture, we asked employees about their own values, how they
perceive the values of JSR Micro, and the values we want to aspire to in the future. We were very pleased to find that
despite the many changes, JSR Micro is still a unified company: there was little difference between the responsesof employees who have been with the company for a long time and those of new employees. There was also little
difference between age groups. JSR Micro’s employees still have shared values focused on excellent performance,
individually and as a company. Based on the survey results, we formulated these core company values:

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JSR MICRO CSR REPORT 2019

Governance and ethics
JSR Micro is a fully owned subsidiary of JSR Corporation. The daily business operations are run bya six-person executive committee. Oversight takes place through the board of directors, which includes members of
our corporate parent and JSR Micro NV.
Our corporate code of conduct, “The JSR Group Principles of Corporate Ethics,” provides the baseline for ethicalbusiness conduct internally as well as toward our stakeholders.

Left to right: Koichi Nagasaka, Kurt Adams, Xavier Buch, Paul Buysse, Johan Desimpelaere and Bart Denturck

Managing Corporate Social Responsibility (CSR)
Core aspects of CSR are managed through our certified management systems: ISO9001, ISO14001, and OHSAS18001.
These systems are audited by independent third parties, and require cycles of planning, risk assessment,
measurement, review, and improvement. These management systems are deeply embedded in our organizationand culture.

Stakeholder interests
For the first two CSR reports, we initiated extensive stakeholder engagement to identify CSR priority topics. For thisreport, even though the company has gone through significant changes, the expectations and interests of our key
stakeholders remained consistent: our customers value quality above all, and cost comes in second place. For our
employees, stress management and mobility were key concerns. The list below provides a comprehensive overview
of the CSR topics that have a high impact and are prioritized by our stakeholders:
JSR Micro: a culture of care for our employees
Finding ways to improve mobility
Innovation: our core competency
Extending excellent quality
Business continuity planning and risk management
Health and safety
Product stewardship through complianceManaging environmental impacts
Responsible supply chain management

JSR MICRO CSR REPORT 2019

6

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JSR MICRO CSR REPORT 20198

JSR MICRO CSR REPORT 2019

JSR Micro: a culture ofcare for our employees.
Since our founding in 1986, JSR Micro has grown organically from a small start-up to the successful company that weare now. Throughout all those years we have always taken pride in our personable, respectful, and “flat” company
culture. A company culture that has a strong focus on quality, efficiency, and serving the needs of our customers.
During the reporting period we experienced a growth of 35% in employees. Mainly because of our expansion in thelife sciences business, we grew from 133 to 179 employees.
This growth of course created challenges: firstly, the job market within Belgium is saturated, making it challenging
to find employees who align with both the job profile and our company culture. Secondly, once we found the right
fit, it was imperative to ensure that new employees were not only up to the task at hand, but also firmly embedded
in our company culture and values. Last but not least, we needed to ensure that our existing employees did notoverstretch themselves amid all the changes.

A culture of care for our employees
COMPANYGROWTH

2015

2016

2017

2018

Employees (total headcount)

111

133

160

179

%

39%

37%

39%

39%

femaleCONTRACT
TYPE

2017

2018

Total HC

160

179

Part-time employees

18%

18%

Employees working outside
the Leuven facility

6%5%

Temporary employees (FTE)

85AGE (HR)NEW HIRES &TURNOVER
New hire rate in 201723%

New hire rate in 2018

21%

Turnover rate in 2017

4%

Turnover rate in 2018 10%

AVERAGE HOURS OF
TRAINING PER YEARPER EMPLOYEENATIONALITY (HC)
2017

2018

49,7

53,4

in 2017in 2018

2017

2018

Belgian

90

54

100

61

Under 30

18

7

26

14

European (Belgium excl.)

7

4

7

5

30-50

58

48

61

43

Asian

0

4

0

4

Over 50

22

7

22

13

American

1

0

1

0

African

0

0

0

1

4 areas of activities“The resilience chart”:
in order to support our employees
in maintaining healthy stress levels,
we offer them a menu with activities
to boost their resilience. Each
employee can choose individuallyor with their team from a list ofactivities that help them deal withstress and stay healthy. Some
examples of these activities include
energy management, individual
coaching, Stress Reset, yoga, a
healthy cooking workshop, andmuch more.
Welcoming new employees:
new employees are welcomedto JSR Micro during an informal
breakfast with executives. Eachnew employee is also appointed toa “peter” or “meter” (mentor) who
introduces him or her to all practicalaspects of the organization. In
addition, there are formal trainings,
for example regarding quality, andhealth and safety. Together with the
HR Department and their manager,
new employees create a training
and development plan.
Development and education:
employees have always beenencouraged to pursue additional
education, for their day-to-day
work, and for career development.
The company has grown so rapidlythat capturing training needs on an
individual basis was no longer themost effective approach. Therefore,
our HR Department now centralizes
the shared training needs of
employees, as well as capabilities

needed for the future growth of
our organization. In this way, in the
future we can offer a comprehensive
training and education program tolarger groups of employees.
Diversity: internationally, thetopic of diversity has received
much attention. We operate in aninternational environment, and in a
multicultural society. Our workforce
at JSR Micro reflects this. Within our
hiring policy, non-discrimination isprerequisite. We look for the personthat is fit for the job, regardless ofgender, ethnicity, religion, age, orother factors.
In February 2019,
our HR Department
successfully applied
for the “Sustainable
Career” call of the European Social
Fund. We are now engaged in a
project. Its aim is to enhance thedevelopment of our employees
through sustainable careers. The
topics we will be addressing in thisproject are: hiring and onboarding,motivation and wellbeing, feedback,personal development, and roles
and responsibilities.

All employees receive anannual performance review
within our company.
All employees are coveredby collective bargaining
agreements.

STAFF MEMBERS

x51

x57

x27

x34

in 2017in 2018

DEPARTMENT
HEADS

x9

x9

x9

x9

in 2017in 2018

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JSR MICRO CSR REPORT 2019

Our personnel club: connecting JSR employees, caring for each other,and making a difference
JSR Micro’s personnel club organizes various casual andfun events throughout the year aiming to get to knoweach other outside the work environment. The highlightof our program is joining “the warmest week”, acharity event of radio station Studio Brussel, where
people throughout Flanders volunteer for a wide rangeof charitable causes.
At JSR Micro we organizeddifferent events where we
cooked and sold delicious
snacks to raise money.
However, the highlightof our charity campaign
was without a doubt the“Warmathon”. With nofewer than 103 JSR Microemployees, we headed to Leuven tojoin this StuBru fundraising run/walk event, aiming toaccomplish as many “JSR Micro challenges” as possible.
For every challenge achieved, JSR Micro donated. Withjoined forces, JSR Micro and its personnel raised thetotal sum of € 6.545,00.
We donated € 5.000,00 to Lola’s family. Lola is a 12-yearold Belgian girl who was hit by a car when she waswalking to the annual camp of her youth movement.
The surgeries and care that she now needs have put
financial stress on her family. We hope our contribution
will help to pull her family through these difficult times.
The remaining money was transferred to RuimteVaart,
an NGO in Leuven that supports families living inpoverty in various ways such as connecting children
with nature in urban food gardens, offering moneysaving tips, providing basic needs and homemade foodfor an affordable price, and much more.

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JSR MICRO CSR REPORT 2019

Finding ways
to improve mobility.
Mobility is becoming an increasingly important topic
for JSR Micro. Every year, it takes our employees
longer to travel the same distance to our company site.
Moreover, the challenge of a long commute reduces
the radius within which we can find new employees.
For many, the prospect of traveling a long distance inrush-hour traffic discourages them from applying fora position at JSR Micro. Therefore, we try everything
possible to make the commute easier.
Company bike plan
For employees who live close to the company site,
biking to work is a suitable alternative to taking thecar. JSR Micro offers a bike leasing plan to employees
who commit to biking to work on a regular basis. For
the first bike, the full cost is paid by JSR Micro. Whenthe lease ends after 3 years, there is an option for a
new lease. For the second lease term, the cost is partly
borne by the employee, but can easily be earned backvia the allowance an employee receives for commuting
by bike.

Car fleet
We encourage employees to choose electric or hybridcars. During the reporting period, 3 employees madeuse of this option when their old lease ended. A totalof 6 employees are now driving a hybrid or electric car.
When the new building was constructed, we added
6 charging stations to the parking lot. The charging
stations supply green energy.
Public transport
Employees who commute by bus are compensated for
72 percent of their public-transit travel costs.

Ik Kyoto
Ik Kyoto started out as an initiative that was promoted by the Flanders Region, but has become a household
tradition at JSR Micro. During the spring and summer months we track all kilometers that employees commute withsustainable transport: bike, bus, carpool, and teleworking. At the end of the period, we celebrate with a breakfast for
all participants. During the reporting period, 98 participants made 151.779 sustainable kilometers, and saved 20.474
kg CO2. As a token of appreciation for participation, they receive a gift. In 2018, they were offered a fruit tree of theirchoice: apple, cherry, pear, or plum. They could be taken home or planted at the site of JSR Micro. 70 trees wereordered, of which 15 were planted at our site.

33
25
23
29

Public transportation

Bicycle / by footCarpoolingHome office

37
39
50
71
80
97
2018

98

70.000 KM

80.000 KM

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JSR MICRO CSR REPORT 2019

Healthand Safety.
Because of the nature of JSR Micro’s operations,employees are required to work with hazardous
materials and industrial equipment. The employeesthat do not work in the production environment spend
a lot of time behind their computers. When this is notdone in the right posture with adequate breaks, there isa risk of injury. It is therefore of prime importance that
employees have the skills, knowledge, and support todo their work safely. Our Health and Safety Department
assures safe operations through providing training,
conducting inspection rounds, performing safetyassessments for products and processes, analyzing
safety risks, and organizing awareness campaigns.
Performance is embedded in processes throughour certified OHSAS Occupational Health & Safety
management system.

100% of the workforce is represented by thecommittee for prevention and protection at work
100% of products are assessed for
health and safety impacts

12

JSR MICRO CSR REPORT 2019

Extending
excellent quality.
Committee for prevention andprotection at work

JSR has a long history of quality. Our quality mindset is what has made us successful in the semiconductor industry.
We aim to leverage this skill into our life sciences activities and all new businesses that we engage in.

Belgian law requires companies with more than 50
employees to organize a committee for prevention andprotection at work. JSR Micro’s committee members
include both managers and employees. The employee
members are elected every four years.

This requires conscious dedication. During the last 20
years, JSR Micro has grown organically. In the earlyyears, everyone who joined the company was immersedin the organizational culture, which allowed us tobuild strong and consistent shared values. With therapid growth of the last years, we are actively looking
to find new ways to instill the quality mindset in new
employees, through training, communication, andmentorship. We believe that executives who “walk thetalk” are the best role models of the company culture
and values. In various settings, such as an informal
breakfast with executives, newsletters, and lunch
presentations, the importance of quality is highlighted.

Each month, the committee meets and discusses healthand safety topics. Managers present plans and reporton performance and the handling of accidents, andemployees have an opportunity to ask questions andmake requests—such as for new work shoes or more
showers.
In addition, the committee conducts monthly safety
rounds. Employees review departments of theorganization in which they normally do not work inorder to look at a situation with fresh eyes. The safety
rounds are an important part of our efforts to takepreventive measures.

“ It is never a question ofwhat to choose, it is always
quality first ” - Xavier“ The awareness that thesmallest deviation fromthe standard procedure
can have enormous
consequences ” - Mathieu
Leveraging the ISO9001 quality standard
We manage our quality performance using the ISO9001
quality standard as a foundation. However, many of
our customers deliver products to downstream sectorsthat adhere to different standards with different focus
and conditions. To meet customer needs, our quality
management system includes many elements of the
IATF standard (former TS16949), the quality standard
for the automotive industry, and of GMP (GoodManufacturing Practice), which stipulates requirements
for the production of pharmaceuticals.
Quality and CSR
Our quality management system enables us to havesound and efficient processes.

Processes are optimized in data-driven continuous
improvement cycles, resulting in efficient use ofresources and energy. In this way, our quality system isfoundational for CSR, enabling us to be responsible andefficient.

Cost of quality
4.05 %

2014

2.89 %

2015

2.64 %

2016

2.51 %

2017

2.32 %

2018

Customer recognition
In the end, our customers determine whether we havesucceeded in delivering quality. We are proud to reportthat we have received the following awards during thereporting period:
In 2017, we were awarded by Infineon foroutstanding supplier performance in the categoryof Best Quality Award 2017.
ON Semiconductor presented us with an award inrecognition of Perfect Quality in 2013, 2014, 2015,2016, and 2017.
ST Microelectronics presented JSR with thePreferred Supplier Award in 2017.
In 2017, JSR was awarded with Intel’s Preferred
Quality Supplier Award, and in 2018 we received
Intel’s Supplier Achievement Award.
We assess our quality performance through measuring
the cost of quality (CoQ). The CoQ includes threecomponents: prevention, appraisal, and failure. By
investing in prevention and appraisal, we keep the costsof failure as low as possible. Overall, we aim for a CoQ
that is less than 2.5 percent of revenue.

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JSR MICRO CSR REPORT 2019

JSR MICRO CSR REPORT 2019

Innovation:
our core competence.
JSR Micro develops and produces advanced products and materials to support the semiconductor, the life
sciences, and the energy and environment industries. The mission of our corporate parent guides the innovation of
responsibly produced materials that benefit our society:We create value through materials to enrich society,people, and the environment.
Environmental considerations of materials used
JSR Micro takes a proactive approach to selecting
materials for product development. Each substancethat is imported into our site is thoroughly assessed by
two in-house expert toxicologists. They not only review
compliance with existing regulations, but also assess
whether a substance may be a candidate for future
regulation. Each substance is labeled with instructions
for safe use and responsible disposal. At the end-oflife our customers send spent materials to dedicatedwaste processors. Because most of our products areprocessing aids, they do not end up in consumer
products.

Semiconductor materials
For years, innovation in the semiconductor industry
has been driven by “Moore’s Law,” which dictates thatthe number of transistors on a microchip doubles
every two years. Now that dimensions on a computer
chip are approaching the limitations posed by the lawsof physics, it is becoming increasingly challenging toachieve progress in a cost-effective way.
Recently, the semiconductor industry introduced theconcept of “more than Moore,” which predicts that it ispossible to create additional performance (or to lower
the cost for a similar performance) not only by shrinking
the dimensions of a microchip (the traditional Moore’sLaw) but also by introducing more functionalities in a
microchip instead of using several chips on a circuit.
JSR Micro is contributing to both innovation paths.
Firstly, we are pushing “Moore’s Law” to its limit bydelivering advanced materials that enable the creationof ever-smaller lines on a microchip.

Progress on businessdevelopment
100%
80%
60%
40%
20%
0%

Green energy applications

Life sciences.

JSR has developed a range of products that support
trends such as the transition to green energy andelectric transportation. For example, our ULTIMOTM
Lithium Ion Capacitor (LIC) is used for energy
recuperation in tram systems that run in Nice, France,
and Kaohsiung, Taiwan. JSR’s aqueous binders areapplied in batteries, replacing toxic products.

Biotech pharmaceuticals: antibody therapy
One of the recent generations oftherapeutics uses antibodies thatare designed to recognize andsuppress pathologies such as cancer and immunologicaland neurological diseases. The producers of these drugs
need to guarantee a very high level of quality and purity,
as prescribed by regulators such as the FDA.

Our application lab is always looking for opportunities
to employ JSR’s products in different contexts. Using
our aqueous binder we developed a special functional
coating which, when applied to textile, can push water
through the textile using a very low current.
The technology is now applied in ski gear: with thetouch of a button, sweat is removed from clothes during
heavy exercise. At the end of 2017, the clothing wastested by a professional cross-country team. The jacket
with this technology has been on the market since
Christmas 2018. We are looking for other applicationsof the functional textile coating; for example, it could be
used for bed-ridden patients in hospital settings.

2012 2013 2014 2015 2016 2017 2018

With EUV photoresist,the current leadingedge technology, it
is possible to create
7-10nm lines in only
single or double
exposure steps,
significantly reducing
energy use and waste
during production. In January 2017, we produced our
first commercial batch of EUV photoresist.

14

JSR’s Amsphere™ Protein A is used to purify suchantibodies during the production process. JSR’s
Amsphere™ Protein A is more efficient than competitive
products, resulting in less waste and an overall lower
cost, which benefits the end user: the patient.
Creating capacity for full production in Leuven
In previous years, JSR Micro produced Protein A
for Amsphere™, and our sister company in Japan
finalized the product. In 2017, it was decided to bring
the full production in-house. In the following year,
the production line was set-up, a new building wasconstructed, personnel was hired and trained.
In October of 2018, JSR Micro’s production processes
were validated, and commercial production started.

The next generation.
The NGO Vlajo aims to build bridges between education and professional life. After a successful presentation in2017, JSR Micro’s president, Bart Denturck, was again invited to share his experiences with entrepreneurship withdifferent groups of students who are about to start their careers. People outside industry are seldom aware of B2B
companies. The students were quite surprised at the relevance of JSR Micro’s products to technologies that theyuse on a daily basis. The students were also very interested in the practice of strategy development, and had several
follow-up questions. We hope that some of them will be inspired into entrepreneurship or chemistry.

Secondly, we support the “more than Moore”
innovation trend: applications such as the internet ofthings, big data, autonomous vehicles, automation, andthe digital society require a lot of processing power andsensors, but not necessarily from the most advanced
technologies. In the past, this demand would usuallyshift to Asia. In the last two years, we have seen that
customers are reinvesting in Europe, with JSR receiving
requests to develop and innovate the traditional
photoresists such as i-line, ARF, and KRF.
JSR Micro’s president Bart Denturck with the students

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JSR MICRO CSR REPORT 2019

Product stewardshipthrough compliance.
100% compliant with:
Chemical legislation
Environmental legislation
Labelling requirements

Compliance is not merely about obeying the law
and complying with rules and regulations. It is thebasis of product stewardship. Any product should bedesigned, produced, and used with respect for people
and the environment. This is achieved firstly by being
compliant, and secondly by taking a proactive andprecautionary approach.

JSR Micro’s regulatory department assesses any
material that is imported into the company. It reviews
which laws are applicable, and under what conditions
the material can be safely used. The life sciences
activities fall under different legislation than the semiconductor activities. In some cases, different laws apply to thesame materials, depending on the context of use. During this process, the department will also review whether thesubstance may be subject for future legislation, and will notify R&D in Leuven and our sister companies if this is thecase.
0 Euro fines during the reporting period

Not all materials that are selected by R&D have ample data available. In these cases, JSR Micro’s toxicologists willconduct a structural analysis of the chemical, and compare it with substances with a similar structure for whichmore data is available. This allows us to extrapolate findings from other research. In this way we are able to take aprecautionary approach even when limited data is available.

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JSR MICRO CSR REPORT 2019

Managing
environmental impacts.
A fundamental aspect of CSR is the sound managementof environmental impacts, and a dedication to minimize
our environmental footprint whenever possible. JSR
Micro’s energy and water use, greenhouse gas (GHG)
emissions, and waste are managed through a certified
ISO 14001 environmental management system.

Environmental performance
NON-HAZARDOUS WASTE (CY)
Total
metric ton in

26%

A learning curve for new production lines
Incineration & Recovery Recycling
As mentioned in previous sections, during the reporting
76%
24%
2017
period we started commercial production for new
production lines in the semiconductor and the life
26%
74%
2018
sciences businesses. Simultaneously, the production of
our existing product lines also increased.
Unfortunately, 2017 18%
76%
2017
this has led to an overall increase of environmental
74% include a0%2018 (CY)2018 HAZARDOUS
WASTE
impacts. New production processes always
learning curve during which more waste is created. Now
Total
Incineration
metric ton inthat the new processes are settled, we can focus on
4%1328 2017
improving efficiency and reducing waste.
4%4%metric ton in

Environmental performance of the new building
To accommodate the company’s growth, a new building
was constructed on our site in Leuven. It complies
with the upcoming building standard of the city of
Leuven. The following elements were integrated toreduce environmental impact: use of rainwater to flush
toilets, skylights with rotating sun reflectors, building
insulation, sit-standing desks for all employees, apervious parking lot, a new bicycle parking, andcharging stations for electrical cars.
Reducing life sciences hazardous waste
The largest component of the increase in hazardous
waste originates from our life sciences activities. This
waste stream contains mostly water. Because it needs
to be neutralized, it is discarded with a dedicated waste
processor. We intend to neutralize and treat the waste
water generated by our production activities on site
and reuse the purified water in our own production
afterwards. This will reduce our waste handling andtreatment as well as the emissions during transport
significantly.
Water consumption
m3 in
19,3 K2017

3053 2018

2%
2%2%

Gas

in
15,564 GJ
2017

in
15,380 GJ
2017

in
22,656 GJ
2018in
23,490 GJ
2018

GHG EMISSIONS (FY)
Scope 1in metric ton CO2

Scope 2in metric ton CO2

in

1,729 2017

in

1,888 2018837 2017
1,241 2018

inin

Water reuse
m3 in
23,4 K2018% in

18,7 2017

18%

2018

0%

2017
2017
2017
2018
2018
2018

ENERGY USE (FY)Electricity

2017

2017
2017
2017
2018
2018
2018

Recovery2017 95%20172017 95%
95%
2018 97%20182018 97%
97%

Recycling
1%
1%
1%
1%
1%
1%

24%

ton in
124 metric2018

116 2017% in

19,9 2018

17

JSR MICRO CSR REPORT 2019

Business Continuity
Planning (BCP) and risk
management.
In addition, worldwide we witness the increase of
extreme weather events, putting global supply chainsat risk. That is why, where possible, we aim to create
redundancy in our supply chains. Finally, to anticipate
on calamities, elaborate action plans are in place.

JSR Micro operates in a dynamic, complex, andglobal environment. This makes us acutely aware of
the importance of business continuity and recovery
planning.

These plans do not only exist on paper, they are tested
annually in coordination with our sister companies in
the US and Japan. During BCP drills, we simulate how
other sites will take over production if one site goes
down. The BCP plans are then adjusted based on what
we learn during these annual drills.

Responsible
supply chain
management.
Most of the CSR impacts and risks do not occur at ourcompany site, but within our supply chains. For thisreason, responsible supply chain management is an
important component of JSR Micro’s CSR program. To
influence the CSR performance of our suppliers, we
asked existing key suppliers to sign the Responsible
Business Alliance (RBA) code of conduct in 2016. The
RBA is an industry coalition dedicated to fostering CSR
practices in global supply chains. The code of conduct
covers a wide range of topics, such as ethics, labor,
health and safety, and environmental management
practices.
Most of the raw materials used in JSR Micro’s products
are sourced from our corporate parent in Japan.
Suppliers of these materials fall under the corporate“CSR procurement” and “green procurement”
programs. JSR Micro’s other suppliers are locatedin Europe. They operate in high-tech environments
and adhere to strict regulations. Therefore, there is areduced risk of violations of human rights, labor rights,
and environmental responsibility.



BCP starts with the identification and reduction of risks.
On a regular basis, we conduct an in-depth evaluationof existing risks such as a fire, explosion, terrorist attack,pandemic, or extreme weather event. Based on thatanalysis, we take precautionary measures and plan forbusiness continuity. During the reporting period, therisk and impact of cybercrimes significantly increased.
To protect us against this increased risk, we worked withan external expert consultancy to update the security of
our IT systems.

 

 



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

 

18

JSR MICRO CSR REPORT 2019

Supply chain descriptions

Semiconductormaterials

Life Sciences

LIC’s

Supply chain performance
70 percent of key suppliers have signed
the RBA code of conduct, or have shared
their own code of conduct.
11 audits were performed during
the reporting period.
The lean project: optimizing logistics
Currently, our customer service and logistics
department is working with an external consultant to
optimize these processes. Several actions have alreadybeen implemented: reduction of transport rounds
through combining different orders on one route, kpi
measurements on logistics operations,and a reduction of paper use through automatizon.
Supplier audits
Supplier practices can critically influence JSR Micro’s
quality performance. Consequently, we perform risk
assessments to determine whether an audit is necessary.
During our supplier audits, we not only assess quality,
but also safety and environmental topics.

Production of
raw materials

JSR Activity

Distribution

Use phase

End-of-life

Polymers
Solvents
Photoactive
compoundResin

Manufacturing
electronicmaterials(photoresist)

Transport

End use by
B2B customer

Disposal

PolymerProtein

Manufacturing
Protein A

Transport

End use by
B2B customer

Disposal

Use of LIC

Disposal

Polymer
Aluminum
CopperManufacturingof LIC by
JM Energy

Distribution,technical andsales supportof LIC

Transport

Integrationof LIC in UPS
and public
transportation
systems

19

JSR MICRO CSR REPORT 20192019 GRI
Content Index

JSR MICRO CSR REPORT 2019

GENERAL DISCLOSURESGRIStandard

Disclosure #Disclosure description

Page number
and/or URL(s)Direct answer / Reason for omission

102-10Significant changes tothe organization and its
supply chain

Introducing JSR
Micro, page 3-6

A new building was constructed on the company’s
perimeter. A new production line was set up for JSR
Micro’s semiconductor and life sciences activities.

102-11

Precautionary principle

Product
stewardshipthroughcompliance,
page 15102-12External initiatives

Managing
Corporate Social
Responsibility(CSR), page 5102-13

Membership ofassociations

102-14

Statement from seniordecision-maker102-16

Values, principles,standards, and norms of
behavior

102-18Governance structure102-40

List of stakeholder
groups102-41

Collective bargaining
agreements

JSR Micro: aculture of care forour employees,
page 7-9

100% of employees are covered by collective
bargaining agreements.

102-42

Identifying and selecting
stakeholders

Stakeholderinterests, page 5Interactions with stakeholders are an integral part ofdaily business operations. We engage proactively andcontinuously with stakeholders that critically influence
our success: employees, customers, business partners,
industry associations, and government agencies. In
addition, we are always responsive to the requests
that we receive from stakeholder groups with which
we have less frequent contact, such as neighbors and
NGOs.

GENERAL DISCLOSURESGRIStandard

Disclosure #Disclosure description

GRI 102:
GeneralDisclosures 2016

102-1

Name of the organization Message from the
President,
page 2102-2

Activities, brands,
products, and services

Page number
and/or URL(s)Introducing JSR
Micro, page 3-6
Innovation: ourcore competency,
page 13

Direct answer / Reason for omission
JSR Micro N.V.

https://www.jsrmicro.be/electronic-materials
https://www.jsrmicro.be/life-sciences
https://www.jsrmicro.be/emerging-technologies

102-3

Location of headquarters

JSR Micro N.V.
Researchpark Haasrode 1019
Technologielaan 8
B-3001 Leuven
Belgium

102-4

Location of operations

Leuven, Belgium.

102-5

Nature of ownership andlegal form

Privately held corporation.

102-6

Markets served

102-7

102-8

102-9

Scale of the organization

Information on
employees and otherworkers

Supply chain

Introducing JSR
Micro, page 3-6

JSR Micro: aculture of care forour employees,
page 7-9

JSR Micro: aculture of care forour employees,
page 7-9

Responsible
supply chain
management,
page 18

20

Semiconductor manufacturers in the electronics
market. Healthcare and pharmaceutical industries,
biopharma companies, and universities.
Companies in the industrial market, with solutions for
public transportation and energy storage systems.
Total workforce is the head count excluding
contractors and expats. Partial disclosure. Financial
and production information is omitted because it isconfidential. Our parent company JSR Corporation
publishes an annual report that includes JSR Micro
N.V.’s performance. Refer to the Fine Chemicals andOther Product Business section of JSR Corporation’s
2018 Annual Report:
http://www.jsr.co.jp/jsr_e/ir/annual_csr_report.shtml.
Data was compiled in our payroll system in. In
principle, the organization’s activities are performedby JSR Micro’s permanent employees. Our temporary
employees consist of interim contracts, and ‘job
students’. We often make use of a 3-month interim
contract before offering a permanent contract. During
the summer holiday, we employ students to fill in forpermanent employees, using temporary contracts.

102-43

ISO9001:2015
ISO14001:2015
OHSAS18001:2007
Responsible Business Alliance.
Essenscia

JSR Group Principles of Corporate Ethics.
https://www.jsrmicro.be/about-jsr/corporate-socialresponsibility/corporate-code-conduct
Employees, customers, business partners, industry
associations, government agencies, neighbors,
suppliers, shareholders.

Approach to stakeholder
engagement102-44

Key topics and concerns
raisedStakeholderinterests, page 5

102-45

Entities included in the
consolidated financial
statements

JSR Micro N.V.

102-46

Defining report content
and topic Boundaries

The boundary for all aspects of CSR, except for
supply chain management, is JSR Micro N.V. This iswhere most of our impacts occur, and where we havemost control to influence impacts. The supply chain
falls outside of our boundaries though we do try to
influence CSR behavior through our supplier relations.

102-47

List of material topics

102-48

Restatements of
information

Stakeholderinterests, page 5
During the reporting period the Cost of Quality model
was reviewed and updated. We standardized thecollection of data, and reduced complexity in thecollection of CoQ data and calculation of the total CoQ.
Based on the new calculation method, we revised the
CoQ in previous years: FY14 increased from 3,45% to
4,05%, FY15 increased from 2,26% to 2,89% and FY16
increased from 2,08% to 2,64%.

21

JSR MICRO CSR REPORT 2019

JSR MICRO CSR REPORT 2019

GENERAL DISCLOSURESGRIStandard

Disclosure #Disclosure description

102-48

Restatements of
information

GENERAL DISCLOSURES
Page number
and/or URL(s)Direct answer / Reason for omission
In our previous report zinc was listed as a raw material
for the LIC. This was part of a miscommunication, there
is no zinc in JSR LIC’s.
JSR micro N.V. is a subsidiary of the Japanese JSR
Corporation. Each year, several Japanese assignees
work with us. In previous years, we have included themin the employee headcount. However, they are not on
the JSR Micro N.V. payroll. To make the headcount fit
with the employees that fall under our organizationalboundaries, we decided to recalculate the total
employees excluding the assignees.

102-49Changes in reporting

In previous reports mobility was discussed as a part ofenvironmental impacts and employee engagement.
Because the importance of the topic has increased, in
this report we discuss mobility as a separate material
topic.

102-50

Reporting period

April 1, 2017, to March 31, 2019102-51

Date of most recent
reportAugust 2017102-52

Reporting cycle

Biennial

102-53

Contact point forquestions regarding thereportKatleen Gorissen
Email: CSR@jsrmicro.be102-54Claims of reporting inaccordance with the GRI
Standards

About this report,
page 1

102-55

GRI content index

2019, GRI content
index, page 19-22

102-56External assurance

GRI
Standard

Disclosure #Disclosure description

103-1
103-2
103-3

Companyspecificindicator

Cost of
Quality

Management approachto material topic

GRI 103:
Management
Approach2018

See disclosure 102-46 for an explanation of how the
topic boundaries are determined.
ISO9001:2015

Management approachto material topic

Managing
Corporate Social
Responsibility(CSR), page 5
Health and Safety,
page 11

See disclosure 102-46 for an explanation of how the
topic boundaries are determined.
OHSAS18001:2007

GRI 403:403-1
occupational
health andsafety 2018

Occupational healthand safety management
systemHealth and Safety,
page 11a. i. It is a requirement of the SEVESO III legislation for
JSR Micro to have a health and safety management
system.
ii. The certified OHSAS18001:2007 standard is used to
implement the management system.
b. All workers, workplaces and activities are covered by
the management system.

GRI 416:416-1
customerhealth andsafety 2016

Assessment of the healthand safety impacts ofproduct and service
categories

Health and Safety,
page 11

100% of JSR Micro products are assessed for healthand safety impacts. We improve the heath and safety
impacts if possible.

GRI 417:marketingandlabeling
2016

Requirements for
product and service
information and labeling

Health and Safety,
page 11All significant products and services includes
information on sourcing of components, content andits environmental impact and safe use.

Managing
Corporate Social
Responsibility(CSR), page 5
Business
Continuity
Planning(BCP) and risk
management,
page 17

See disclosure 102-46 for an explanation of how the
topic boundaries are determined.

417-1

BCP and risk
GRI 103:
Management
Approach
2016

103-1
103-2
103-3

Companyspecificindicator

Annualrisk
review

Management approachto material topic

103-1
103-2
103-3

Companyspecificindicator

Progressonbusinessdevelopment

Management approachto material topic

Managing change:
6 “batteries”,
page 3Innovation: ourcore competency,
page 13-14
Innovation: ourcore competency,
page 13-14

Business
Continuity
Planning(BCP) and risk
management,
page 17

Employee Engagement

Extending
excellent quality,
page 12

Innovation
GRI 103:
Management
Approach2016

Direct answer / Reason for omission

103-1
103-2
103-3

JSR Micro does not have a policy for external
assurance, nor did JSR Micro seek external assurance
for this report.
Managing
Corporate Social
Responsibility(CSR), page 5
Extending
excellent quality,
page 12Page number
and/or URL(s)Health and Safety

Quality
GRI 103:
Management
Approach2016

22

See disclosure 102-46 for an explanation of how the
topic boundaries are determined.

GRI 103:
Management Approach 2016

103-1
103-2
103-3

Management approachto material topic

JSR Micro: aculture of care forour employees,
page 7-9

GRI 401:
Employment 2016

401-1

New hires and turnover

JSR Micro: aculture of care forour employees,
page 7-9

GRI 404:
Training
and
Education
2016

404-1

Average hours of training
per year per employee

JSR Micro: aculture of care forour employees,
page 7-9

404-3

Performance and careerdevelopment reviews

JSR Micro: aculture of care forour employees,
page 7-9

See disclosure 102-46 for an explanation of how the
topic boundaries are determined.

23

JSR MICRO CSR REPORT 2019

JSR MICRO CSR REPORT 2019

GENERAL DISCLOSURESGRIStandard

Disclosure #Disclosure description

GENERAL DISCLOSURES
Page number
and/or URL(s)Direct answer / Reason for omission

Environment
GRI 103:
Management
Approach
2016

103-1
103-2
103-3

Management approachto material topic

Managing
Corporate Social
Responsibility(CSR), page 5
Managing
environmental
impacts, page 16

See disclosure 102-46 for an explanation of how the
topic boundaries are determined.
ISO14001:2015

Managing
environmental
impacts, page 16

The waste disposal method was determined in cooperation with the waste contractor and according tolegal requirements.
Recovery: waste is incinerated with recovery of energy

Waste
GRI 306:
Effluentsand Waste
2016

306-2

306-3

Waste by type anddisposal method

Significant spills

There were no significant spills during the reporting
period.

Emissions
GRI 305:
Emissions
2016

305-1

Direct (Scope 1) GHG
emissionsManaging
environmental
impacts, page 16

Conversion factors from Indea
Greenhouse gas emissions include gas, electricity and
HFC’s . Other emissions were not included because
we did not track them during the reporting period.
However, we are convinced that gas and electricity use
account for most of our GHG emissions.

305-2

Energy indirect (Scope 2)
GHG emissions

Managing
environmental
impacts, page 16

Conversion factors from Indea
Greenhouse gas emissions include gas electricity and
HFC’s. Other emissions were not included because
we did not track them during the reporting period.
However, we are convinced that gas and electricity use
account for most of our GHG emissions.

Energy consumption
within the organization

Managing
environmental
impacts, page 16

Data (kWh consumption) was retrieved from theinvoices. Energy use reported include gas andelectricity. Other emissions were not included because
we did not track them during the reporting period.
However, we are convinced that gas and electricity use
account for most of our GHG emissions.

Water withdrawal bysourceManaging
environmental
impacts, page 16

All water withdrawn is third-party freshwater fromour municipality. All water is withdrawn from an areawith water stress, as Belgium is indicated as a water
stressed area: https://www.eea.europa.eu/data-andmaps/figures/water-stress-in-europe-2000-and-2030/
fig-3-3-water-stress.eps/image_large

Managing
Corporate Social
Responsibility(CSR), page 5
Product
stewardshipthroughcompliance, page
15

See disclosure 102-46 for an explanation of how the
topic boundaries are determined.

EnergyGRI 302:
Energy
2016

302-1

Water
GRI 303:
Water
2016

303-1

Compliance
GRI 103:
Management
Approach
2016

103-1
103-2
103-3

Management approachto material topic

24

GRI
Standard

Disclosure #Disclosure description

Page number
and/or URL(s)Direct answer / Reason for omission

GRI 307:
Environmental
Compliance
2016

307-1

Non-compliance withenvironmental laws andregulations

Product
stewardshipthroughcompliance,
page 15

There were $0 fines in FY17 or FY18.
During the reporting period, there has not been any
environmental penalty.

GRI 416:
Customer
Healthand Safety
2016

416-2

Incidents of noncompliance concerning
the health and safety
impacts of products andservices

Product
stewardshipthroughcompliance,
page 15

There were $0 fines in FY17 or FY18.
During the reporting period, there has not been any
environmental penalty.

GRI 417:
MarketingandLabeling
2016

417-2

Incidents of noncompliance concerning
the health and safety
impacts of products andservices

Product
stewardshipthroughcompliance, page15

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

Managing
Corporate Social
Responsibility(CSR), page 5
Responsible
supply chain
management,
page 18

See disclosure 102-46 for an explanation of how the
topic boundaries are determined.

Supply Chain Management
GRI 103:
Management
Approach
2016

103-1
103-2
103-3

Companyspecificindicator% of key
suppliersthat
havesignedthe RBA
code ofconduct,or havesharedtheirown
code ofconduct

Management approachto material topic

Responsible
supply chain
management,
page 18

Questions or suggestions
about this CSR report?

WINNER OF THE
JSR MICRO CSRPHOTO CONTEST
2019

JSR Micro NV Researchpark Haasrode 1019, Technologielaan 8, B-3001 Leuven (Belgium)+32 (0)16 832 832 - jsrmicro@jsrmicro.be - www.jsrmicro.be

CSR-expertise and guidance: van Hamelen Consulting - Concept and creaction © HYP3.bePhoto credits to JSR Micro employees: Bart Vanherp, Koen Vanormelingen, Katleen Gorissen, Sasha Luyten and Inge Imbrechts.

Contact: CSR@jsrmicro.be