2014
Corporate
SocialResponsibility
Report1

ABOUT THIS REPORT
Materiality Disclosures Service
JSR Micro’s 2014 Corporate Social Responsibility Report was submitted to Global
Reporting Initiative (GRI) for the Materiality Disclosures Service. Through this service,
GRI verifies the correct placing of general standard disclosures G4-17 to G4-27, in
the GRI content index as well as in the text of the report. No further adjustments weremade to the text of the report after this verification by GRI. Please see page 66 for the
GRI Materiality Disclosure Service logo.
Disclosures G4-17 to G4-27 cover the process for determining material topics, thescope and boundary of these topics, as well as JSR Micro’s approach to stakeholder
engagement.

Feedback & Contact Information
Our CSR reports can be accessed at www.jsrmicro.com. We value your comments andsuggestions, which help us improve future reports. Please share your feedback orquestions by contacting Phyllis Moracco, Human Resources Director, atsustainability@jsrmicro.com.

JSR Micro, Inc. is pleased topresent our 2014 Corporate
Social Responsibility (CSR)
Report. As our second biennial
report focused on our CSR
approach and performance, it
covers the period from April 1,
2012, to March 31, 2014, which
represents our fiscal years (FY)2012 and 2013. Any exceptions
are clearly noted.
Our inaugural CSR report was
published in April 2012 andlater nominated for consideration in CorporateRegister.
com’s CR Reporting Awards as
one of the Top 10 in the Best
1st Time Report category. The
report followed the Global
Reporting Initiative’s (GRI)
Sustainability Reporting
Guidelines, Version 3.1, at an
Application Level C. For thisreport, we chose to prepare
the report “in accordance”
with the Core option of the
GRI G4 Sustainability Reporting Guidelines (GRI G4
Guidelines). Refer to the GRI
Reporting Information section
on page 62 for the GRI Content
Index and additional information on the development of thisreport.

Entities Reported andData Boundary
This report is limited
solely to JSR Micro, Inc. andour US-based operations,which include the corporate
headquarters in Sunnyvale,
California, the field office in2

Oregon, the research lab in San
Diego, California, and remotesales employees. It excludes
JSR Micro’s joint ventures andentities with which JSR Microhas joint development agreements.
The data boundary for the
performance indicators in thisreport is unchanged from the2012 report. The environmental
data represent the facilities at
our Sunnyvale headquarters(plant, labs, warehouse andadministrative office). Allother indicators, including disclosures relating tooperational and management
performance, represent JSR
Micro. Refer to the Environmental Stewardship section on
page 38 for information on thechange in base year for our
new environmental reduction
goals.

Changes Since Last
Report [G4-22, G4-23]
Laboratory renovation: We
renovated the Life Sciences
research laboratory located at
our headquarters in Sunnyvale,
California. The lab’s expansion
contributed to a 100% increasein the number of employees inthe Life Sciences group (14 intotal, including product managers and research scientists).
New R&D laboratory: We
converted a 3,300-square-footspace into a new JSR Micro
Life Sciences research anddevelopment (R&D) laboratory
in San Diego, California, which
was completed in May 2014.
Learn more about the facility
on page 13.
New partnerships and joint
development agreements:
To expand our work within theelectronic and biopharmaceutical industries, JSR Microestablished partnerships andjoint development agreements
in 2012 with two companies
with complementary productportfolios: NexPlanar Inc., astart-up company in Hillsboro,
Oregon, which manufactureschemical mechanical polishing(CMP) pads for the semiconductor market; and Natrix
Separations Inc., a corporation
based in Ontario, Canada,
engaged in the development
and manufacture of highperformance chromatography
products for the life sciences
market. The report excludes
these and similar entities
with which JSR Micro has joint
development agreements.
Restatement: The greenhousegas (GHG) emissions resultsfor FY08 to FY11 in the 2012
report were recalculated toreflect the emission factor adjustments made by Pacific Gas
and Electric Company (PG&E).
The recalculations did not havean effect on JSR Micro’s overall
performance trend or reduction plans. Recalculations arereported on page 74.

3

CONTENT
3
6

About This Report
Message from our President

8 ABOUT JSR MICRO
10
13

Our Company & Stakeholders
Our Products

14 PURSUING CSR EXCELLENCE16

Our Approach to CSR Management

20 FOCUSING ON OUR CSR PRIORITIES
23
25
26
31
35
39
41
43
45
46
48
50
53
54
58
60

Business Continuity & Risk Management
Quality Management
Innovation
Responsible Supply Chain Management
Health & Safety
Environmental Stewardship
Our Environmental Performance
Greening Our Operations
Energy & Emissions
Reducing Our Footprint
Water
Waste
Materials Conservation
Employee Development & Engagement
Creating an Enjoyable Workplace
The Road Ahead

62 GRI REPORTING INFORMATION67

GRI Content Index74

Endnotes

MATERIALS INNOVATION
45

MESSAGE FROM OUR PRESIDENTJSR Micro is proud to announce our second CSR report. During
the last two years, we have built on the momentum createdby our first report, strengthened our internal processes andreached out to stakeholders for feedback and ideas to extend
our programs. The concepts of social and environmental responsibility are critical in our approach to corporate citizenship andhelp make us an overall healthier organization. Our CSR strategy
is also informed by the rich heritage of our corporate parent,
where the decision to venture into any new market is guided bya mission to develop products that improve society, which dovetails with the goals of sustainability.
Our core business is in theelectronics industry, where
customers have moved beyond
an expectation of reliable,
cutting-edge technology to
demand transparency, consistency and quality throughout
a manufacturer’s supply chain.
This has increased the pressure on us to differentiate on
quality and placed greater
importance on our internal
processes and robust metrics,
because the ramifications of
missteps can compromise trustand brand value.
The quality principles andpractices of the semiconductor
industry are seen as exemplary, and numerous customers
have recognized our efforts.

are ingrained in our culture
and a core part of our strategy.
We are committed to taking aleadership role in expanding
our quality systems throughout
our organization and supply
chain and into new markets.
The energy and environment
and life sciences sectors, forexample, have reacted well toour disciplined approach to
manufacturing quality systems.
To continue to excel in quality
and enable real improvement,
we need to engage our supply
chain partners to promote CSR
practices upstream.

The majority of excursions that
we are seeing originate in our
supply chain. We are leveraging our relationships with
In 2013 JSR received the preslarge-cap, foundational custigious Supplier Continuous
tomers to effect change among
Quality Improvement (SCQI)
our sub-suppliers, and we areaward from Intel for the fifth
confident that they will recogtime, and GLOBALFOUNDRIES nize the value in strengthening
recognized us through its first
their quality practices. The
annual global Supplier Awards. benefits of these types of
For JSR Micro, quality andchanges will reverberate alongsafety standards (ISO 9001,
the value chain. To accomplish
ISO 14001, OHSAS 18001) are
this, we have implemented amore than certifications. Theybalanced scorecard goal for6

supply chain management andhave plans in place to roll out
a supplier code of conduct
within the next year.
But it is important that we
simultaneously focus inward.
Safety, like quality, is a value
rather than a metric to be
managed. We are proud that
we have not had any chemicalrelated injuries since 2009 andour ergonomics injury count istrending downward. However,
we also saw an increase incommon workplace injuries
such as slips, trips and falls in
2013. This tells us that we facea new challenge of enhancing
and fostering our culture sothat safety is fully integrated
into everyone’s activities andmindset.
Looking at our recent achievements, I am pleased with theprogress of our CSR program.
Most of our goals are on track(summary table on page 17),and when a goal was not met,
there was a clear, attributablereason. For example, in 2012
we opened a new LEED Silver
certified building, whichenabled us to meet our greenhouse gas (GHG) and water
reduction goals despite thefacility expansion. However,removing one of our buildings
and an unexpected change
in manufacturing parameterscaused us to miss our goals
for reducing hazardous andnon-hazardous waste. Other
achievements include receiving the Bay Area Green Busi-

ness certification, completing
our implementation of the
Globally Harmonized Systemof Classification and Labellingof Chemicals (GHS), continuing
employee training on energy
and water conservation andinitiating an employee Green
Award program.
In closing, it is both rewarding
and satisfying that our efforts
are being recognized andhaving a positive impact in theworkplace, in the environment
and in the community. It is at
the same time humbling because there is always more thatcan be done. I look forward
to expanding our efforts andsharing our progress in the
coming years.
Sincerely,

Eric Johnson
President

7

ABOUT JSR MICRO
8

9

OUR COMPANY & STAKEHOLDERS
Overview
Established in 1990 as awholly owned subsidiary of JSR
Corporation (also referred toas the JSR Group), JSR Micro,
Inc. is a Delaware corporation
headquartered in Sunnyvale,
California. Most of our 160
employees are based in Silicon
Valley, where our administrative and manufacturing operations are located. We have
two additional operations: anoffice in Oregon and a recently
opened laboratory in San
Diego.

In recent years, we branchedout into new markets. JSR Corporation launched JM Energy
Corporation in 2007 to further
the development and delivery
to market of the lithium ion
capacitor (LIC). LICs are applied in industrial processes
in various sectors. Our Energy
and Environment department
works to introduce LICs andcomplementary products to
the US market.
With the need for medical andhealthcare products increasing worldwide, JSR Group

Memberships
JSR is a corporate member of the Society of Photographic Instrumentation Engineers (SPIE), and is an annually contributing participant
at the SPIE conference. We are also a member of the World Semiconductor Council, the Semiconductor Industry Association and
SEMI (Semiconductor Equipment and Materials International). JSR
endorses the five key principles of SEMI’s Global Care initiative:
•
•
•
•
•

Workplace Health and Safety
Resource Conservation
Product StewardshipCommunity Service
Excellence

For more information, see: http://www.semi.org/P009555.
10

recognizes the life sciences
as a strategic growth market.
Our Life Sciences department,
founded in 2009, develops
medical products for pharmaceutical companies in thehealthcare industry, building
on our corporate parent’s 30
years of research and development experience in this area.
The Our Products section
beginning on page 12 provides
more details on our products
and their applications.

Our Stakeholders[G4-24, G4-25, G4-26]

The relationships we have with
our stakeholders—our employees, customers and business
partners as well as our suppliers, the local community,
industry organizations, andselect government and regulatory agencies—are essential to
our success.
All our stakeholders contributeto our awareness, analysis
and ownership of the varied
challenges of balancing the
economic, social and environmental aspects of our operations.
Working with our executive
leadership, the CSR teamevaluated and prioritized key
stakeholders as those most
likely to be impacted by JSR
Micro’s business and sustainability initiatives, as well as
those that enable us to execute

JSR Micro’s Executive Team

our strategy. Engagementwith these stakeholders is anorganic process occurring
daily, monthly or quarterly
in different ways with various stakeholder groups. Fora detailed overview of our
methods of engagementwith key stakeholder groups,
please see pages 18 and 19 inour 2012 CSR report.
Our Innovation One-on-One
approach, described on page26, exemplifies JSR’s approachto collaborative stakeholder
engagement. In addition,
employee engagement is important to fostering innovation
and retaining talented employees, as discussed further on
page 54.

For information on our approach to stakeholder engagement related to the development of this report, refer tothe GRI Reporting Information
section on page 64.

Governance
JSR Micro is privately owned,
with JSR Corporation in Japan
holding 78% and JSR Micro
N.V. in Belgium holding 22%of the company. The US-based
board of directors is ourhighest-ranking governing
body. Four of the board’s sevenmembers serve on JSR Micro’s
executive team, and threeothers serve as directors at JSR
Corporation. JSR Micro’s Presi-dent, Eric Johnson, serves as
Chairman of the Board, which
oversees JSR Micro’s Executive
Committee. The committee,
which develops and executes
business strategy, meets with
JSR Corporation quarterly tocoordinate strategic efforts
while running the company ona daily basis. This governancestructure balances the interests of our shareholders with
JSR Micro leadership.

11

JSR CSR FOCUS

Approximately 12% of ourworkforce is strategically positioned throughout the UnitedStates in Southern California,
Arizona, Connecticut, Massachusetts, New Hampshire,
New Jersey, New York, North
Carolina, Oregon, Texas andVirginia.

JSR Micro’s core business is the
manufacture and distributionof more than 200 high-performance photoresist products toleading semiconductor manufacturers in the electronics
industry throughout the UnitedStates. Through our parent andsister companies, our products
are also distributed throughout
the world.

OUR PRODUCTS
JSR Micro’s core business is the development and fabricationof diversified semiconductor materials for microchip manufacturers. Working with JSR Corporation, we have expanded
our activities in recent years into the areas of life sciences andenergy and environment. JSR Corporation develops the initialmaterials and chemistries, then JSR Micro develops and introduces new products to the US market.

Electronic Materials
JSR provides high-quality photoresists and other lithographymaterials, custom-made for ourcustomers. Using lithography,
our photoresists create thepatterns on semiconductor
substrates, which enables thecreation and function of microchips that we find in everyday
objects such as smartphones,
laptops and tablets.

This demand is also driven
by recent markets such as the“Internet of Things” — using
computing resources to connect everyday devices to theInternet and applying the data
gathered to optimize their use.
Through our Innovation Oneon-One approach (see page26), we leverage our materials
and lithography knowledge tofind innovative solutions thatenable our customers to provide solutions for these trends.

Life Sciences

JSR Corporation was the firstto commercialize lithium ion
capacitors via its subsidiary
JM Energy, which is dedicatedto the development, manufacturing and marketing of its
ULTIMO™ brand LIC. LICs arean advanced type of electrochemical (super) capacitor
with much higher energy
density than traditional superor ultracapacitors. These typesof electrical storage devices
store or release electricity
through rapid electrostatic
reactions, unlike batteries that
release electricity throughslower chemical reactions.

JSR Micro’s entry into the life
sciences market leveraged ourlatex beads technology, where
the beads are used by in vitro
diagnostics (IVD) companies
to produce diagnostics kits fordiagnosing diseases. To promote test automation, the IVD
market has embraced paramagnetic particle technology
so that programmed robotics
can handle hundreds of test
samples at once. JSR’s Magnosphere™ superparamagnetic
beads are used in these applications as well as in research
reagents for the separation andpurification of proteins, nucleic
acids and cells.

LICs excel in applications thatfrequently require or absorb
high power for short periodsof time. An LIC’s extremely
long cycle life at high rates
and its long calendar life
make it ideal for bridge ortransition power, uninterruptible power supply and voltage
sag compensator markets,
which have been early adopters.
LICs have been adopted or
evaluated in applications suchas hybrid excavators, hybrid
vehicles, remote sensors, automated guided vehicles andLED lighting. Interest in additional applications continues
to expand; examples include
using LICs with other energystorage devices such as batteries and fuel cells to further
improve their efficiency and12adding pulse-power capabilities while reducing energystorage space and/or weight.
JM Energy and JSR Microcontinue to invest in, anddevelop, LIC technology. JM
Energy recently announced
its factory expansion and the
addition of a new prismatic
cell and UL certification for its
commercialized cells.
In addition to progress with
LICs, JSR Micro’s environmentally friendly aqueous
binders, which are used tohold together active materials
in battery and ultracapacitor
electrodes, continue to generate market interest overtraditional solvent-based PVDF
(polyvinylidene fluoride) binders.

We recently made a further
push into the biotechnology market by developing
JSR’s Amsphere™ Protein A
chromatography media. This
product targets the expensive
Protein A purification step forthe production of monoclonal
antibody therapeutics where

purity of the product stream
and reduction of costs required
to achieve target purity areimportant to biopharmaceutical companies. JSR hasleveraged our technologies inprecision polymer synthesis,
surface modification and genetic engineering to produce
a superior product. To increase
our product offering for thedownstream purification
chain, we have made further
investments in or partneredwith companies, such as Natrix
Separations, that produce
purification technologies.
One of our mainstays is
medical polymers such aselastomers, thermoplastic elastomers and specialty resins foruse in medical devices such as
IV bags, tubes and transdermal patches. We develop andmanufacture these polymers
using our specialized polymer
technologies, which we continue to improve in quality andperformance to meet customers’ needs.

New Life Sciences R&D Laboratory Advances
Biotech Product Development
In May 2014, we opened the new JSR Micro life sciences researchand development laboratory in San Diego, California. The
3,300-square-foot lab is an added operation to our existing R&D
laboratory located at our Sunnyvale headquarters. The new facility serves as an innovation center for all state-of-the-art productdevelopment in in vitro diagnostics and biomarker research. JSR’s
scientists working in the lab will focus on establishing allianceswith other biotech institutions in the region and collaborate withleading scientists to further advance scientific research and delivercreative solutions to the field of diagnostic testing and antibody
engineering.
13

JSR CSR FOCUS

Our photoresists enable etching of intricate patterns intoa variety of underlying substrates, which creates billions
of transistors on just a coupleof square millimeters.
Lithography technology is

indispensable for creatingnext-generation products thatmeet the growing demand
for smaller, faster and moreenergy-efficient microchips.

Energy & Environment

PURSUING CSR EXCELLENCE
AT JSR MICRO
14

15

OUR APPROACH TO CSR MANAGEMENT
At JSR Micro, corporate social
responsibility is an extensionof our culture, which is definedby customer focus, quality andinnovation. As such, our CSR
program is built on the foundation of JSR’s operations: operational excellence, innovationand market leadership. And
it comes to life through thestrong support and engagement of our employees.

and Safety (EH&S) and Quality
departments are responsible
for various aspects of the CSR
program within the company,
such as managing designatedprojects and working withcustomers and suppliers withrespect to CSR requirements.
The departments work closely
together to align their efforts
and further cultivate CSR
within the company.

To embed CSR into organizational processes, we haveintegrated the program into
our management systems.

Evaluating Our
Progress

While JSR Micro’s president
has ultimate responsibility for
CSR performance, a crossfunctional team manages the
CSR program and works on
initiatives across the organization. The CSR team also
focuses on employee engagement and involvement in CSR
activities and strengthening a
The CSR reporting process
CSR mindset within our culture.
also provides an effective
Our HR, Environmental, Healthapproach to evaluate our

We will continue to explore
effective ways to manage andimprove our CSR program andto streamline our approach. In
addition, we will continue topublish CSR reports bienniallyas a way both to inform our key
stakeholders of our progress
and to evaluate the effectiveness of our approach.

“Corporate social responsibility
is a business’s version of beinga good citizen. Both people andcompanies are most successfulwhen they recognize thatthey’re part of something larger
than themselves, and they
replace simple self-interest withenlightened self-interest.”- Jim MulreadyVice President, Global Quality
Assurance

16

CSR Progress and Performance Summary
Material Topic [G4-19]

Goal

Performance

Health & Safety:
Employees

Reduce workplace injuries.

No chemical injury has occurredsince FY09.
There was a decrease in ergonomic
injuries, but an increase in common workplace injuries. Efforts toimprove safety culture have been
started to reduce common workplace injuries.

Health & Safety:
Customers

Complete implementation of, andsupport for, GHS safety data sheets(SDSs) and labels by the end of
FY14.

The GHS conversion and implementation was completed in August
2014. Support is ongoing.

Quality Management &Operational Excellence

Confidential

Achieved

Business Continuity & Risk
Management

Maintain zero high risks on the
EICC Risk Assessment II (RA2) assessment.

Achieved

Chemical Waste Management (Hazardous Waste)

Reduce total hazardous waste by
45% from FY08 baseline level by
FY18.

We achieved the lowest volume in
FY12, but experienced an increase
in FY13 due to an unexpected
manufacturing plan change.

Energy & Greenhouse Gas
Emissions

Reduce total GHG emissions by
10% from FY08 baseline level by
FY13.

Achieved

Innovation

Publish one magazine article on our Achieved
research results every two years.

Talent Retention: Employment

Maintain turnover rate that is 15%
below the national average.

Achieved

Talent Retention: Training
and Education

Maintain 100% coverage of employees by regular performance
reviews.

Achieved

Market Share

Confidential

Confidential

Compliance

Maintain 100% compliance with en- Achieved: No environmental violavironmental laws and regulations.
tions occurred in FY12 or FY13.

Water

Reduce total water usage by 35%
from FY08 baseline level by FY18.

Achieved

Supplier Human Rights
Assessment

Send out a supplier code of conduct to top-tier suppliers by theend of 2015.

In progress

JSR CSR FOCUS

To evaluate performance anddrive improvement, CSR is
included on our balanced
scorecard, where it is tied to
executive goals and remuneration. The CSR Progress &Performance Summary on thenext page highlights our goals
and performance during thereporting period.

performance. A first CSR
report is a baseline measurement—and an impetus forongoing improvement. Developing our first report enabled
us to identify opportunities
for improvement, including
overall integration of our CSR
program within the organization. Finding the right structure
for the management oversightof CSR, an area that is widelydispersed throughout theorganization, has been one of
our challenges during the lastreporting period.

17

Identifying Our CSR
Priorities [G4-18, G4-19]
To determine our CSR priorities, the CSR team conducteda materiality assessment toevaluate relevant topics ontheir importance to stakeholders and level of impact on
the company. The process is
described in the GRI Reporting Information section on
page 62. The result of theassessment is an updated listof the topics that guide our
CSR initiatives and define thecontents of this report.
The materiality matrix shows
the prioritization of the topics
evaluated and identifies twolevels of reported topics: material topics and key relevant
topics.

holders and with significant
impact on business operations(medium-to-high ranking). We
were fortunate to find a close
correspondence between
these two perspectives. The
report covers material topics
in depth with discussions on
management approach andperformance indicators.

Material topics are thoseranked as being of medium
to high importance to stake-

Key relevant topics are additional topics covered in thereport due to their level ofimportance to stakeholders
or impact on the company.
Coverage of the key relevant
topics is at a less detailed leveland generally does not include
performance indicators.

Commitments toExternal Initiatives

JSR Micro endorses many
global standards, charters,
principles and other initiatives such as the universal
Although the remaining topics principles of the United Nalisted in the matrix are nottions (UN) Global Compact,
covered in the report, they
the EICC Code of Conduct
are considered relevant to JSR
to foster responsible global
Micro’s operations and our CSR electronics supply chains andimpacts.
the Global Care framework
aimed at strengthening thesemiconductor industry’s EH&S
commitment.
Our CSR program builds on
the knowledge, experienceand guidance within theseframeworks and initiatives. The
following table lists the external initiatives that JSR Microendorses and those to which
we subscribe.

Ensuring EthicalBehavior
Ethical behavior is integral
to our business approachand reinforced within our
CSR program. We follow
the JSR Group Principles
of Corporate Ethics, andwe voluntarily adopted
the EICC Code of Conduct
in 2012 (see page 32).
Endorsement of both codes
is mandatory for all employees. JSR Micro assures active
implementation of the codes
through regular training
on subjects such as sexual
harassment, diversity andanti-corruption. All employees as well as management
are expected to participate
in these trainings.

Memberships to External Initiatives

18

Date of Adoption

Application

Stakeholder Reach

3rd Party
AuditedISO 9001

1998

JSR Micro’s
operations

Global standard

Yes

SPIE

2005

JSR Micro’s
operations

Semiconductor
industryNo

SEMI Global Care2007

JSR Micro’s
operations

Semiconductor
industryNo

UN Global Compact

2009

JSR Group’s global
operations

Global initiativeNo

ISO 14001

2010

JSR Micro’s
operations

Global standard

Yes

OHSAS 18001

2010

JSR Micro’s
operations

Global standard

Yes

EICC Code of Conduct

2012

JSR Group’s global
operations

Electronics industry

Yes

California Green
Business Program

2013

JSR Micro’s
operations

California businesses

Yes

19

JSR CSR FOCUS

Materiality Matrix

Initiative

FOCUSING ON
OUR CSR PRIORITIESBusiness Continuity & Risk Management
Quality Management
Innovation
Supply Chain Management
Health & Safety
Environmental Stewardship
Employee Development & Engagement

20

21

BUSINESS CONTINUITY & RISK MANAGEMENTBusiness continuity and risk
management efforts complement each other with theirshared objectives of ensuringongoing operations andachieving our strategy. Withrisk mitigation and management, we orchestrate ouractions based on the assessment of the likelihood of an
occurrence, whereas withbusiness continuity we plan for
worst-case scenarios.

To ensure the effectiveness of
its approach, the JSR Group
contracted a third party toreview and evaluate its risk
management system andprograms, which confirmed the“solid structures and systems
in place for managing risk,”
which “consistently promoted
risk management activities.”
The review also identified
areas for improvement. A moredetailed description of JSRGroup’s approach to risk management is available online:
jsr.co.jp/jsr_e/csr/2013/risk.
shtml.

BCP Within JSR Micro
Our Approach toBusiness Continuity
Planning and Risk
Management
BCP and risk management
begin at the JSR Group level
and continue within each division, including JSR Micro. The
JSR Group’s Risk Management
22Core to BCP are preparedness
for contingent events, theability to continue operations
under unforeseen circumstances and quick recovery
when continuing operations
is not possible. For all thesescenarios JSR Micro has
developed detailed plans,
which management reviewson a yearly basis. Furthermore,

we perform annual BCP drills.
In 2015 we will include drills
along the supply chain.

Risk Management
Within JSR
JSR Micro identifies, mitigatesand manages risks associatedwith our operational processes
through our ISO 14001:2004
certified environmental management system and OHSAS
18001:2007 certified healthand safety management system. These systems integratea precautionary approach
to identify and mitigate
potentially adverse impactsof our operations. Refer to theEnvironmental Stewardship
section on page 38 and Customer Health & Safety section
on page 34 for additional
information. Before procuring
new chemicals or products,
the EH&S department reviews
their potential human andenvironmental hazards, as wellas potential exposure routes,

emergency responses, safe
disposal and storage methods,
and regulatory restrictions. To
assess level of risk, we apply
ranking criteria such as severity, likelihood of occurrence,
frequency of occurrence,level of public concern anddegree of control. We use anenvironmental scoring system
to measure and track implemented improvements.
At a broader level, performing a materiality assessment
as part of our CSR program,described further in the GRI
Reporting Information section
on page 62, helps identify andprioritize risks over longer
periods of time. It also enables
us to consider and respondto the risks our stakeholders
perceive.

Supply Chain Risk
Assessment
Our customers have asked formore transparency regarding
risks and BCP, and many use
the EICC Risk Assessment II(RA2) tool to evaluate supply chain risks. The RA2 is asecond-level risk-assessment
tool developed by the EICC,
which enables corporations
to evaluate specific areas ofrisk in their supply chain. The
RA2 has sections on management systems, labor, healthand safety, environment andethics. The assessment results
in a percentage score and theidentification of risk levels(low, medium and high) withineach section.
JSR Micro completes the RA2
for many of our customers on
an annual basis and shares ouroverall and section scores andrisk levels. Some of our customers include the RA2 scoresin their supplier scorecards
and set criteria for zero highrisks and a maximum of four
sections with medium risk, forwhich plans must be in place
to improve the scores (i.e.,
reduce risk) in those sections.
JSR Micro has met our customers’ requirements and our
performance goal for zero highrisks each year. Nonetheless,we aim to continue to improve
our RA2 scores, which help us
evaluate the effectiveness of
our approach to risk management.

Considering
Climate-Related
Risks
The impacts of climatechange heighten our attention
to risk management and theneed for business continuity
planning. Our approaches
in these areas help ensure
resiliency in the face of anincreased likelihood for more
frequent and more severe
weather-related events suchas flooding, droughts andstorms and related impacts
such as wildfires. These risks
are palpable at our local
operations and our parent
and sister companies as wellas throughout our supply
chain.

In addition, some customers
choose to follow up with anon-site EICC-validated audit(RA3). JSR Micro did not undergo any RA3 audits during
the report period.
Within our supply chain, we
evaluate new suppliers andreview existing ones to identify
potential areas of risk. Our
approach, described in the
Responsible Supply Chain
Management section on page30, integrates the EICC sections and elements of the RA2.

23

JSR CSR FOCUS

A robust approach to risk management and business continuity planning (BCP) is essential
for all companies, and it iscritical to assuring stakeholders of JSR Micro’s long-term
viability and success. Both risk
management and BCP havebecome increasingly more
important because we areliving in an increasingly interconnected and interdependent
globalized world. We understand that risk ripples acrossthe value chain; therefore, ourapproach is comprehensive
and collaborative, involving
the JSR Group, our customers
and our suppliers.

Committee oversees groupwide risk management andresponse planning for eachdivision. The committee identifies and evaluates risks andformulates response policies,
and the CSR Committee monitors progress. The business
continuity plans and identified
risks for JSR Group divisions
are translated into policy at
the local level. The following
sections describe approaches
specific to JSR Micro.

QUALITY MANAGEMENT
Quality at JSR Micro is notjust a business priority or thereceipt of a certificate: It is acore value. As such, JSR Micro’s
quality journey has taken us far
over the past two decades. We
are dedicated to higher quality
and believe that integrating
quality into our business strategy not only promotes alignment of all functional activities
toward common goals but also
impacts the organization’s
focus and effectiveness on all
quality initiatives.

Our Approach: Quality
from the Start
Our quality culture is embedded across all levels of ourorganization. All employees
have a responsibility to support quality. By integrating
the voice of the customer
across the organization, we
proactively manage customer
expectations and consistently
24

JSR Micro adopted ISO 9001,
the international standard for
quality management, when
we began operations in 1998.
It promotes a quality culturethat is focused on leadership,process and a systems-based
approach, customer satisfaction, continuous improvement
and people’s involvement
in quality efforts. Our ISO
9001:2008 certified quality
management system is subject
to a yearly surveillance audit
and a recertification audit by
an ISO registrar every three
years. These audits ensure
continued compliance with
the ISO standard, policies andrequirements.
In addition, both the ISO 14001
environmental management
system and OHSAS 18001
occupational health and safety
management system undergo
the same frequency of audits
and recertifications. Together
these standards provide asystemwide, systematic approach to managing quality
and environmental, healthand safety issues within ourorganization.
We assess the effectivenessof our approach to qual-

ity management internallythrough our ISO certificationand performance measures,and externally through theevaluations and recognition we
receive from our customers,
as described in the following
sections.

Total Cost of Quality as % of Sales

9

1

8
7
6
5
4

Evaluating Quality
Performance
To track nonconformance torequirements and corrective
and preventive actions, we
review the total cost of quality in relation to total sales tobetter understand the impactof quality on the organization(see chart on the next page).
The total cost of quality is
the sum of costs associatedwith the following three maincategories:
Prevention: Cost of investingin the prevention of nonconformance to requirements
Appraisal: Cost of appraisinga product or service for conformance to requirements
Failure: Cost of failing to meetrequirements
Our objective is to invest sufficiently on the Prevention andAppraisal components to drive
down the Failure component,such that we spend the minimum amount of our company’s
revenues on quality overall.
Our experience with thisapproach demonstrates that
we can significantly reduce
the overall cost of quality andachieve a multimillion-dollar

3
2
1
0
CY07

FY08

FY09

level of savings every year
compared to our original
baseline. Contrary to thecommon misconception that
quality is expensive, ourresults show that quality
programs pay for themselves
many times over. Since 2007,
we have reduced total cost ofquality as a percentage of total
sales by 40%—while increasing customer value. Although
the FY13 result increased fromthe previous three years, we
expect that the FY14 value will
be closer to our results in FY11
and FY12.

FY10

FY11

FY12

FY13

the effectiveness of our approach to quality and customer
engagement.
Our customers use scorecards/
report cards to evaluate their
suppliers based on their
specific expectations. Thesescores help us monitor, assess and improve quality andthe health of our customer
relationships. We set specifictargets based on each custom-

er’s expectations for top-tiersuppliers, with an overall goalto achieve all targets each year.
External recognition by ourcustomers further demonstrates the quality of theirexperience with JSR. In 2013
JSR received the Intel SupplierContinuous Quality Improvement award for the fourthconsecutive year—and the fifth
time in the last six years. Thisaward is the highest quality
award that Intel gives to encourage its roadmap suppliers
to strive for best-in-class levelsof excellence and continuous
improvement in performance,
cost, quality, delivery, technology and environmental, socialand governance areas. In 2014
JSR was recognized through
GLOBALFOUNDRIES’ firstever global Supplier Awards,
receiving the ExcellenceAward for Collaboration andSustained Support.

Customer Evaluations& Recognition
One of our goals is to continuously improve the quality of
our customer experience andtheir assessment of the qualityof our products and services.
Customer evaluation andrecognition provides anotherlens through which to assess

Receiving the 2013 SCQI award at Intel25

JSR CSR FOCUS

Our business operates in ahighly competitive market,
and in order for us to be competitive we need to continue
offering superior products anddelivering quality service. We
believe that service quality
is largely determined by thecustomer’s perception, which
is why meeting—and evenexceeding—customer expectations has been a top priority.
Being a top-tier supplier, weare committed to continuously
improving our relationships
with our customers and thequality of their experience.

deliver exceptional products
and services. Because those
expectations include our
performance in CSR areas suchas environmental stewardshipand supply chain management,
quality management is an
integral part of our CSR approach.

INNOVATIONJSR Micro is an innovationcompany: Our core businessis materials innovation ofchemicals. We stay ahead of
the curve through close collaboration with only the best in
the industry.
Our materials innovation expertise is the value we provide
to our existing customers inthe semiconductor industry,
and it is the point of departurefor venturing into new markets
such as life sciences andenergy and environment.
Through JSR Group’s mission“to contribute to society
through Materials Innovation,”
we identify markets that facechallenges that we can solvewith our expertise.

JSR’s role within the technology
roadmap is to come up withcreative solutions for architec26“JSR is an industry leader
in advanced semiconductormaterials for high performance and consistent, excellent quality. We develop andproduce novel, award-winningphotoresist materials forleading edge and sustaining
semiconductor manufacturers. There are no scientific orengineering challenges we shy
from; we always push for thebest performance and quality
for the next generations oftechnology.”- Brian Osborn
Lithography Manager

Our ‘Innovation Oneon-One’ Approach“Innovation One-on-One”—
our approach to discoveringand adapting product technologies to fit specific customer
requirements—is not just aslogan. Innovation One-on-One
means unique solutions foreach customer. It summarizes
the company’s strategy as wellas the culture. Over the years,
it has served to unify the operations of our growing global
company.

Cultivating Innovation
Through Collaboration
We leverage our materials
expertise through ongoingcollaboration, exchange andexperimentation, cultivating
the innovations that customers
have come to expect of JSR.
To increase opportunities forcross-pollination and innovation, the Sunnyvale plant is
strategically situated among
Silicon Valley giants, andour researchers are sent out
to partners throughout thecountry and work with peers inJapan and Belgium.
We collaborate through joint
research and joint development agreements to optimize
multiple patterning withexisting ArF and KrF photoresists, as well as to research
opportunities to bring nextgeneration technology such as
EUV (extreme ultraviolet lithography) and DSA (directed
self-assembly) to market.

Evaluating Innovation
Performance
The effectiveness of our approach is shown through ourmarket leadership (see nextpage) as well as through theawards for excellence in quality and cooperation that JSR
Micro has received from ourindustry-leading customers(see page 25).

In addition, we track research
publications and othermethods of sharing the resultsof our research and development efforts on subjects suchas advanced lithographymaterials, EUV lithography,
bioprocess materials andmedical beads. Our goal is to
publish at least one magazine
article that details the resultsof our research every two
years, which we have met overthe 2009–2013 period. During
the same period, we authoredor co-authored many research
papers and shared the resultsof our research at sector
conferences through presentations and the publication ofposters.

Innovation & Market
Share
Market share demonstrates
the relevancy and performance of JSR’s products.
Maintaining leadership in
the semiconductor materials
market requires technology
and materials innovation to

Research Publications
CalendarYear

Research
Paper

Poster(Other)Magazine
Article6

ResearchPresentation
1

2009

1

0

2010

5

1

1

1

2011
2012
2013
Total

6
9
1
27

2
1
0
5

3
5
4
14

1
0
1
3

develop tomorrow’s solutions
and remain competitive, areasin which JSR excels.
Market share is managed
through innovative productdevelopment for next-generation material opportunities atsemiconductor manufacturers.
Aggressive research anddevelopment is the primary
driver for improvements andinnovations in photoresist andrelated materials to meet thedemands of leading-edge
semiconductor manufacturers.
By understanding our customers’ needs, we aim to achieve
POR status: the process ofrecord that is the standard

adopted for high-volume
manufacturing. Our approach
begins with clearly identifying
manufacturers’ needs for nextgeneration technology andthen involves iterating andoptimizing new and existing
resist components to achieveand surpass customer targets.
JSR is active in many areas of
new development. Advances
have been demonstrated
across the spectrum of lithographic materials from KrF
and ArF photoresists to immersion and multi-patterningtechniques, and extending
into directed self-assembly(DSA) and extreme ultraviolet
lithography. JSR continues
to invest in next-generationmaterials, ensuring productrelevancy and market share.
The details of our performance and goals for market
share are confidential.

27

JSR CSR FOCUS

Companies within the semiconductor industry, for example, are highly specialized yetneed much coordination to optimize development efforts fornext-generation technologies.
Industry leaders developed
the International Technology
Roadmap for Semiconductors(known as ITRS), the 15-yearassessment of the semiconductor industry’s future technology
requirements. Its goals are
driven by “Moore’s Law,” theprediction that the numberof transistors on a microchip
will double roughly every 24
months, while manufacturingcosts will be reduced.

tural challenges that customers
face. By working closely withour customers to understandtheir specific needs, we use
our materials expertise totranslate those needs intolithography solutions. In thisway, we accelerate each customer’s innovation trajectory.

Innovation to Improve
Environmental
Impacts
JSR develops innovative
materials and technologies
to provide customers withgreater added value and tohelp conserve resources andenergy, as highlighted in thefollowing examples..

Reducing the Resource
Intensity of Our
Products
Accelerating innovation canhave both positive and negative environmental implications. For example, the higher
density of transistors makes
the microchip more efficientthrough a reduction in power
consumption in electronicequipment, prolonged battery
life and a reduction in associated greenhouse gas emissions.

Although faster and more
efficient microchips and intelligent use of electronic products
contribute significantly to reduced environmental impacts
over their entire lifespans, thespecialized technology makes
the fabrication processes moreresource-intensive. This is achallenge for our customers,
who face demands from theircustomer base to reduceresource use. As such, it isalso our challenge to addressthese multiple considerations
and support the reduction ofenergy, water and materials
used in manufacturing while
meeting customer and market
demands.
To do so, JSR Micro continues
to work with our customers on
reducing the overall cost ofownership by optimizing products and processes to reduce
the resources used in microchip fabrication. For example,

through product innovation, we
enable the customer to reduce
the total number of processing
steps during the fabrication of
microchips, in turn reducing
the total amount of time it takes
to process wafers. The overall
result is decreased energy use
in the total production process.
Furthermore, we develop
solvents that require a smaller
shot size onto the silicon wafer.
This results in reduced material use as well as better cost ofownership per single gallon ofmaterial for the client.

Phase-change materials
undergo a change in physicalform at a specific temperature.
One example of a well-known
phase-change material iswater. Water transforms fromliquid to solid (ice) at its
freezing point. JSR’s phasechange material CALGRIP™
transforms from solid to gel,and the temperature at whichthat phase change occurs
may be adjusted through thecontrolled use of JSR’s olefinbased thermoplastic elastomer
materials.

Saving Energy ThroughMaterials Innovation

Available in five temperature
grades, CALGRIP uses theconcept of latent heat for maintaining constant temperature
making it useful for shipping
freeze-sensitive items, suchas pharmaceuticals that need
to be kept cool but not frozen.
Latent heat is the energythat is released or absorbed
when the state of the materialchanges.

JSR has developed a thermal
management material using
the concept of phase change tohelp conserve energy.

CALGRIP™ in solid state (left) and in gel state (right).

JSR CSR FOCUS

Using CALGRIP as the packaging material saves energy
because the shipment stays
cool without the use of addedenergy during shipment.
JSR is working with global customers to evaluate CALGRIP invarious applications, including
insulation, air conditioning
and packaging for shipping
temperature-sensitive items.

Two forms of CALGRIP™ for use in shipping packaging
include the aluminum laminate package (left) and theplastic bottle (right).

“JSR promotes innovation through R&D, corporate venturing and partnerships. We are investing in industry
segments both within and beyond our core expertise in
semiconductor, display, energy and life sciences throughlimited partnership investments in venture capital funds
and direct investments in emerging and innovative companies and technologies. Through this focus on strengthening the core and investing in emerging innovations, JSR
is ready for the future.”- Maria Peterson
Senior Manager Corporate Venturing & Innovation

Semiconductor Wafers
28

29

RESPONSIBLE SUPPLY CHAIN MANAGEMENT
We believe that our businesscan only be truly sustainable if
all parties involved across thevalue chain integrate sustainability and corporate responsibility practices within theirown organizations. Likewise,
our customers increasingly
expect transparency in supply
chain risks and management
practices.
Their responsible supply chain
initiatives and expectations
are the primary driver, as well
as model, for improvements inour supply chain management
program.

Overview of JSR
Micro’s Supply Chain
JSR Micro sources goods andservices from more than 500
suppliers and vendors forthe manufacture of electronicmaterials. Of those, more than
100 are key suppliers—mostly
raw material suppliers, equipProduction of
Raw materials
30

our products prior to transportand distribution to our global
customers.

Supplier Human Rights
Assessment

The environmental impactsof the materials we use
result from extraction of raw
materials; the manufacturing
processes for resin, solventsand polymers, which are

Some of our customers haveexpressed concern about thepotential for human rights
violations in our supply
chain. This is understandable
because the chances for viola-

Most of our suppliers arelocated throughout the UnitedStates, with a few based in
Canada. The majority of ourraw materials suppliers arelocated in Japan.

Once received, the quality of these raw materials is
evaluated through incoming
inspection and testing. We
conduct final inspections on
Transportation of
Raw Materials (Air,
Ocean, Ground)

Our Approachto Supply Chain
Management

energy- and water-intensive
and generate chemical waste;
and transportation (energy and
GHG emissions).

Manufacturingof Product at JSR
Micro Inc.

Use of Product by
Customers

tions are high in many parts of
their supply chains. Most of our
suppliers are located in the US
and Japan, countries that Maplecroft’s 2014 Human Rights
Risk Atlas rates as medium forhuman rights risks. The risks
in these countries are often
related to worker protection,
Disposal/
Recyclingchemical business suppliers
to explore opportunities forbiodiversity conservation, an
environmental impact areathat the company is focusedon supporting throughout its
business activities and theentire product lifecycle.

Implementing the
EICC Code of Conduct

Both JSR Corporation and JSR
Micro administer supplierevaluations, training and assessments, and perform supplier audits as part of responsible supply chain initiatives.

Focus on Material
Suppliers
JSR Micro’s primary productis photoresist. Photoresist is
made from three main components: resin, solvent and photoactive compound. We partnerwith domestic and international material suppliers who
manufacture their products
through polymerization andchemical synthesis. These raw
materials are transported toour main headquarters by air,ocean or ground transportation.

stressing the importance of ensuring that our suppliers haverobust management systems inplace, as discussed further inthe following section on supply
chain management.

While we manage domestic
raw material suppliers, ourparent company manages
all Japanese suppliers. JSR
Corporation manages about
80 chemical suppliers for theelectronic material business,of which more than 90% arebased in Japan, 5% are basedin the US and the remainder
are in Asia and Europe. Its CSR
procurement program covers
95% of these suppliers. As aparticipant in the UN Global
Compact, JSR Corporation iscommitted to engaging suppliers around the Global Compact’s 10 principles to develop
more sustainable supply chain
practices.

Most of JSR Micro’s top
electronics customers are
members of the EICC (Electronic Industry Citizenship
Coalition), the world’s largest
industry coalition dedicatedto electronics supply chain
responsibility. The EICC hasestablished the EICC Code of
Conduct (available at eiccoalition.org/standards/code-ofconduct/), a set of standards
on social, environmental andethical issues which is regarded as a total supply chain
initiative (see table). Our EICC
customers have fully endorsed
the Code across multiple tiersin their supply chains. As a tier
1 supplier to some EICC members, we voluntarily adopted
and implemented the EICC
Code. We also pledge to actively declare our commitment
to propagate the EICC Code to
our next-tier suppliers.

Additionally, JSR Corporation
reached out to major petro-

Adding Value
31

JSR CSR FOCUS

It is important for JSR Microto sustain and build customer
trust and loyalty. A key part of
doing that involves our efforts
to understand, manage andmitigate the key risks affecting
our supply chain. Thus, welaunched initiatives to evaluate
and monitor our key suppliers’ social and environmental
impacts and practices.

ment manufacturers, transport/
freight forwarders and consignment warehouses—with
which we are directly engaged.
We also work closely with
EH&S service providers andsuppliers of silicon wafers,
specialty gases, laboratorychemicals and packaging
supplies.

An Industry Standard for
Supply Chain Responsibility
The EICC Code of Conduct establishes a standards-based
approach to setting objectives and measuring compliance toaddress supplier performance across multiple areas of socialand environmental responsibility, as shown in the following
table.

Areas Covered by the EICC Code of Conduct
LABOR
Freely Chosen Employment

Child Labor AvoidanceWorking Hours

Wages and Benefits

Humane Treatment

Non-discrimination

Freedom of Association
ETHICS
Business Integrity

No Improper Advantage

Disclosure of Information

Intellectual Property

Fair Business, Advertising andCompetition

Protection of Identity

Responsible Sourcing of Minerals

Privacy

Non-retaliation
ENVIRONMENT
Pollution Prevention and Resource Reduction

Hazardous Substances

Wastewater and Solid Waste

Air Emissions

Product Content Restrictions
HEALTH and SAFETY

Occupational Safety

Emergency Preparedness

Occupational Injury and Illness

Industrial Hygiene

Physically Demanding Work

Machine Safeguarding

Sanitation, Food and Housing
MANAGEMENT SYSTEMS
Company Commitment

Management Accountability andResponsibility

Legal and Customer Requirements

Risk Assessment and Risk
Management

Improvement Objectives

Training

Communication

Worker Feedback and Participation

Audits and Assessments

Corrective Action Process

Documentation and Records

Supplier Responsibility

32

When we expanded our CSR
program in 2012, we made it
our goal to reach out to our
suppliers and include themin our journey, similar to how
our customers have worked
with us. To gain knowledgeof the sustainability risks andperformance in our supply
chain, our Procurement department took initial steps in FY13
to assess our key suppliers’
compliance to the EICC
Code of Conduct. The evaluation process involved a CSR
procurement survey that wesent to 27 tier 1 raw material
suppliers; freight forwarders;trucking, warehouse and EH&S
providers; and key vendors.
These targeted suppliers
included those viewed by
JSR Micro to have potential
impact on the quality of the
products manufactured, those
who hold JSR assets and thosefrom whom we purchase on aregular basis.
The survey was a self-assessment questionnaire that incorporated all sections and provisions of the EICC Code onlabor, ethics, health and safety,
and environmental practices.

Eighteen of the 27 suppliers
returned the survey, and all 18
responded with zero reports ofnoncompliance. This baseline
assessment serves as a starting
point for determining supplierperformance and our futureplans for other supply chain
responsibility initiatives.
In 2015, as part of our Procurement team’s future supplierengagement program, we plan
to communicate our goals andexpectations to our suppliers
through a supplier code of
conduct. The code will bemodeled after the EICC Codeof Conduct to incorporate allenvironmental, health andsafety, and labor standards
and practices. We are also
looking at modifying our
supplier scorecard to include
a composite weighting schemeon sustainability indicators.
This will provide information
to help us identify areas where
we can work with suppliers tostrengthen their sustainability
programs.

Auditing Existing
Suppliers
To evaluate existing suppliers,
JSR Micro conducts periodic
on-site supplier audits using
an assessment tool contain-

ing various quality elements.
Each element receives a scorebased on the assessment madeby JSR Micro auditors. In 2013as part of our CSR supply chain
initiative, we added a newelement on environmental,social and governance (ESG)
practices to the audit tool. During the reporting period, two
raw material suppliers wereaudited and graded using therevised tool, and both wereassessed with no gaps in ESG
practices. Suppliers showing
gaps in any of the elements
audited are subject to corrective actions and follow-up
visits from JSR Micro auditors
to bring the supplier’s performance up to par. All future
on-site audits will use this audit
tool, enabling us to assess andmeasure supplier ESG performance and improvement overtime.

Evaluating Potential
New Suppliers
JSR Micro has a comprehensive
process for pre-screening andevaluating potential new raw
materials suppliers. The process is primarily designed toevaluate the supplier in termsof reliability, quality of productand service, overall partnership, and assurance of compli-

ance to rules and regulations.
The initial assessment involves
the completion of a new supplier selection/qualification
checklist, which provides ourassessment team with a comprehensive, constructive andobjective view of the supply
base and potential risks. The
checklist contains questions
to assess the supplier’s quality
systems and other aspects of
its business including how it
manages its environmental,
health and safety system, andaspects of social responsibility. The checklist consists ofquestions that cover laborand human rights topics suchas compliance to applicablelaws pertaining to child labor,
forced labor, maximum work
hours, minimum wages andmandated employee benefits.
During the reporting period,
we identified one raw material supplier with which toestablish a new business relationship. We conducted due
diligence and screened thisnew supplier on human rights
in order to prevent potential
negative impact prior to bringing the business on board
as a new supplier. This due
diligence process has become
an integral part of our new
supplier vetting process.
33

JSR CSR FOCUS

Environmental Permits andReporting

Beginning with an
Assessment

HEALTH & SAFETY
Customer Health &SafetyAs a chemical company, JSR
Micro places health and safety
as our highest priority, andwe understand that the safetyof our products is the mostimportant issue to customers
and users. We are proud that
we have never experienced aregulatory or non-regulatory
health and safety complianceissue for any of our products.

Our Approach to Safe
Product Use“Worker safety directly contributes to JSR’s overall business success; when people
stay safe they are healthier.
When you’re healthy, you’re
happy. Happy people work
better. Better work means
more success!”- Bret Gregorius
Chemical Operator 2
34

Ensuring Safety
Through ProductLabeling & Hazard
Communication
In order to ensure the safetyof our customers who use ourhazardous and potentiallyharmful products, we communicate the chemical hazards
and associated protective
measures through our comprehensive safety data sheets andlabels developed for all R&D
samples and commercial products shipped to customers. JSR
Micro’s SDSs and labels meetor exceed the Occupational
Safety and Health Administration’s (OSHA) Hazard Communication Standards.
The SDS is a grand sum of
our safety and environmental
assessments, and it includes
environmental and healthhazard information, composition information, safe handling
instructions, recommended
preventative measures,
emergency response, proper
storage, transportation and disposal methods, and regulatory
information. EH&S employees
regularly review and update
this information to provide

customers with the most current and accurate information
available. JSR Micro has never
had a chemical label or SDS
noncompliance violation.
Because our chemicals areshipped all over the world, we
ensure globally recognizable
hazard communication by
utilizing the Globally Harmonized System of Classificationand Labelling of Chemicals.
OSHA introduced the GHS in
the US in 2012 and set a mandatory conversion completion
date of June 2015. JSR Microhas completed the conversionof our SDSs and labels to the
GHS format and announced
the changes to all customers.
Most of the products with the
new GHS-compliant SDSs andlabels have been shipped,
and the implementation wascompleted in August 2014, wellahead of the OSHA deadline.
We also regularly coordinate
and exchange information with
our JSR Group counterpartsin Asia and Europe, working
together to make the safety
information of our products
readily available and easily
understandable to all customers and users.

Providing Direct
Customer Support
Our customers can contact us
to ask questions or provide
feedback about our products
by accessing the contact
information provided on all

SDSs and labels. Our EH&S
staff is readily available fordirect customer support toprovide detailed productcomposition data and any
additional information on
chemical regulations, hazards
and handling methods beyond
those required by regulation.
Our hazard evaluation andcommunication system isregularly reviewed and audited by our customers and otherthird-party auditors. We track
the feedback and recommendations received along withthe associated responses andimprovements within our corrective action workflow system,
which supports the assessmentof customer satisfaction related
to product safety and labeling.

Workplace Health &SafetyJust as we pay the highest
attention to our customers’
health and safety, we value
our own employees’ healthand safety as our top priority.
We view safety as a steadfast
attitude and value and understand the tremendous impact
a safe workplace has on thecompany’s overall operational
success.
We have spent many years
establishing a robust safetysystem, to which all employees
contribute and in which they
participate. As a result, JSR
Micro has an exemplary trackrecord: We have maintained
a work environment with zero

JSR Micro’s EH&S Committee

chemical-related injuries since2009. Nonetheless, we haveopportunities for improvement
to strengthen the safety mindset throughout the organization
and address overall performance. Our current focus is onbuilding a true safety culturethat is nurtured and led by all
employees’ strong determination to keep the workplace
incident- and injury-free.

Our Approach to
Employee Health &SafetyJSR Micro has been OHSAS
18001:2007 certified since2010. This internationally standardized health andsafety management system hasstrengthened the foundation of
our programs and supported
our continual improvement
efforts though processes suchas hazard identification, goal
setting, operational control,
training, accident investigations, corrective actions, audits
and management reviews.

The EH&S department, whichis responsible for managementof health and safety, works
closely with multiple departments, including HR, to alignefforts and fully embed safety
throughout the organization.
For example, new employees
are required to attend safety
training before starting work.
In case of injury, the EH&S and
HR departments coordinate
to ensure that the employee
receives proper medical attention as well as follow-up
care such as physical therapy.
Furthermore, starting in FY14,
the HR department is always
represented on the EH&S Committee, as discussed further on
page 37).
Refer to the Promoting Health& Wellness section on page 58
for information on our programs to support employees’
overall health.

35

JSR CSR FOCUS

JSR Micro maintains a staff
of environmental, health andsafety experts who evaluate
chemical hazards, keep up
with current and pendinglaws and regulations, andfollow industry trends. The
EH&S staff assesses the safety
and environmental risks of
all chemicals and their packages through all phases of the
product lifecycle: from productdesign to small-scale R&D
samples to commercial prod-

ucts. Employees follow strict
internal procedures that are
based on regulatory requirements and additional precautionary guidelines. Refer to the
Risk Management Within JSR
Micro section on page 22 foradditional discussion.

Safety Risks & Health
Hazards
The most significant safety risk
chemical manufacturing companies can face is chemicalrelated injury; however, ourdiligent and comprehensive
approach has enabled us tomaintain a work environment
with zero chemical-related
injuries since 2009.
According to our annual healthand safety risk assessments,
ergonomic injuries have been
our top safety risk since 2009
mainly because most employees are exposed to some kindof repetitive work every day. In
past years, we deployed multiple companywide ergonomic
improvement projects, which
helped lower the ergonomic
injury count in FY12 and FY13.
In FY13, however, the numberof other common workplace injuries such as slips, trips, falls
and wrist strains increased.
These incidents point to theneed to improve our existing
engineering and procedural
controls, and further promotea safety-driven environment
where employees put safety as
their No. 1 priority and inspireothers to do the same.

monitoring and a free vaccination program among othersafety controls.

Our life sciences laboratory
includes a biosafety level 2
room where agents posing
moderate hazards to humans
are handled. While no known
infectious material (e.g., virus)
is used in the lab, other potentially infectious materials (e.g.,cells and serum) are handled
for research and development purposes. The company
protects our employees, theirfamilies and the communityfrom potential harm throughour comprehensive biosafety
program, which ensures safebuilding and ventilation
designs, safe equipment
use procedures, lab access
restrictions, proper emergency
response measures, robust
staff training, periodic medical

JSR Micro understands thattracking, monitoring and taking action on recordable andnon-recordable injuries, nearmisses and external audit/
inspection findings are vital
components of a successful
injury-prevention program.
In the history of JSR Micro, we
have never had a significant
injury or death that would
require reporting to California
OSHA. Other injury rates andperformance measurements
are regularly disclosed to
key stakeholders. To prevent
repetitive incident occurrence,
relevant managers, supervisors
and EH&S staff follow up on all
corrective actions until the root
cause is identified, preventative measures are taken and“I have learned quite a bit since I firststarted using ErgoCoach, the software
program that stimulates doing regulareasy-to-do ergonomic excersises. I
appreciate the care that JSR invests intheir employees.”

Evaluating Safety
Performance- Daiji Kawamura
Development Engineer 2

Engaging Employees
in Safety
We believe that everyone
at JSR Micro is responsible
for health and safety. Opportunities for employees toparticipate in and contribute tohealth and safety management
efforts include our behaviorbased safety (BBS) program
and the EH&S Committee.
The BBS program is an employee-driven safety reinforcement
program in which employees
observe each other and givepraise for a safe act or provide
36

constructive advice on an
unsafe behavior. The program
has helped the company build
an interdependent safety
culture. We will enhance thisprogram in the coming years
as a way to promote safety as apart of overall teamwork.
Established in 2001, the EH&S
Committee plays a criticalrole in accident prevention
and hazard communication.
Its members are responsible
for conducting monthly site
inspections, serving as EH&S
leaders within their departmental teams, rolling out newrules and procedures, andpromoting CSR activities. The
committee also integrates
key learnings from the safety
rounds into presentations for
employees companywide.

from multiple departments.
Employee representation isrequired from the departmentswith greater health and safety
risks: Production, Warehouse,
Engineering, R&D and Quality Control. Representationfrom the other administrative
departments is rotated annually. In addition, the committee
members are changed every
year to enable more employees to participate. In FY12 andFY13, six employees servedon the EH&S Committee eachyear as representatives formore than 60% of the total
workforce.

The EH&S Committee iscomprised of employees withdiverse professional expertise37

JSR CSR FOCUS

the effectiveness of the preventative measures is confirmed.
We are planning to further
improve upon our safety
corrective action program to
implement and communicate
preventative measures more
systematically and effectively
throughout the organization.

ENVIRONMENTAL STEWARDSHIPOur Environment, Health &Safety Policy states that:• JSR will strive to implement
necessary actions to protect
the environment and its employees by preventing pollution, injuries and ill health.
• JSR will meet or exceed
all applicable government
requirements and voluntary
requirements to which JSR
subscribes.

Under this policy, we manage all safety risks andenvironmental impacts
through the plan-do-check-act(PDCA) cycle shown in the
diagram. This approach helps
identify potential risks, gaps
and challenges before theyoccur, so that we can establish
mitigation measures, monitor
performance, check the effectiveness of measures, and thenincorporate learning into thenext plans. The cycle repeats
to ensure continuous improvement.

Consumption
Energy58,000 gigajoules
Water
Total: 8.6M gallons (32,600 m3)
Landscape irrigation: 4.6M gallons(17,400 m3)
Building: 4.0M gallons(15,200 m3)
Raw Material
641,700 pounds (291 metric tons)

38

Emissions & Waste
Atmospheric Emissions2
GHG emissions: 3,040 CO2e metric tons
Sulfur oxides: <0.01 metric tons
Nitrous oxides: 1.2 metric tons
Wastewater
646,000 gallons (2,500 m3)
Waste
Landfill: 9,500 lb. (4 metric tons)
Recycled: 373,200 lb. (170 metric tons)
Hazardous waste: 245,600 lb.
(111 metric tons)

•
•
•
•

Risk / impact assessments
Regulatory and non-regulatory requirements identification
Gap analysis
Goal setting

•
•
•
•

Project plans and implementations
Preparation and execution of procedures
Training
Emergency preparation

•
•
•
•

Performance monitoring and measurements
Audits and inspections
Investigations and corrective actions
Record keeping

PLAN

To evaluate and improve ourenvironmental performance,
we measure key impacts andset goals to achieve better
results. We established 10-yeartargets to reduce GHG emissions, water usage and waste
relative to FY08 baselines,
a period that includes our
FY12 and FY13 environmental
performance. Most of the goals
were achieved ahead of the
FY18 target year; therefore, weestablished new goals at theend of FY13 for implementation in FY14. We followed an
improved goal-setting strategy
to establish SMART (specific,
measurable, attainable, realistic and timely) goals within amore realistic time span (twoyears instead of 10 years),as listed on the next page.
The targets are based on the
projected reduction estimatesin our future reduction plans.
The new goals for GHG emissions and non-hazardous waste
are intensity-based by unit ofrevenue, while the water goal
remains tied to the absolute usage metric. We are evaluating
opportunities for minimizing
hazardous waste and will
establish a new goal by FY15.

PDCA Approach to EH&S Management•••

Management review
Feedback for continuous improvement
Adjust and plan for further improvement

our business success, and the
new goals will help us to be
more strategic in environmental planning and provide more
flexibility to navigate throughthe ever-changing business
requirements and associatedenvironmental issues.
The next page lists an overview of our environmental
performance.

JSR CSR FOCUS

Overview of Environmental Impacts at JSR Micro(FY13 Results for Sunnyvale Facilities)

Evaluating Our
Environmental
PerformanceDO

To demonstrate our environmental commitment, we
maintain an ISO 14001:2004
certified environmental management system.

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

CHECK

The key direct impacts occur
through the energy, waterand raw materials we use
to run our operations andmanufacture our products, andthe greenhouse gas (GHG)
emissions, wastewater andwaste generated from those
processes, as detailed in thefollowing diagram.

Our Approach toEnvironmental
Management

ACT

As a responsible company, we
believe that our success depends on sustainable practices
that protect the environmentand conserve scarce natural
resources. JSR Micro is keenly
aware that all our business activities have direct and indirect
impacts on the environment.

The materials industry
landscape, with its nonstop
technological developments
and new diverse applications,changes quickly. Staying on
top of these changes is key to39

OUR ENVIRONMENTAL PERFORMANCE
Environmental Performance Goals (Current and Future)3
Goals

GHG Emissions

Water

Hazardous Waste

Non-Hazardous Waste

Goals Through FY13

Reduce total GHG emissions
by 10% from FY08 baseline
level by FY18.

Reduce total water usage by
35% from FY08 baseline level
by FY18.

Reduce total hazardous wasteby 45% from FY08 baseline
level by FY18.

Reduce total non-hazardous
waste by 25% from FY08 baseline level by FY18.

New Goals Starting
FY14

Reduce emissions per unitof revenue by 8% from FY13
baseline level by FY15.

Reduce total usage by 2.5%
from FY13 baseline level by
FY15.

Identify reduction opportunities and establish new goal by
FY15.

Reduce the amount of non-hazardous waste per unit of revenue by 8% from FY12 baseline
level by FY15.

GHG Emissions (MtCO2e)

Hazardous Waste (lb.)4
400,000

0.030

2,500

0.025

2,000

0.020

1,500

0.015

1,000

0.010

500

0.005

50,000

0

0.000

0

350,000

250,000
Indirect Emissions
Direct Emissions
10% Reduction Goal
GHG per Unit of Measure

45% Reduction Goal

200,000
150,000

Water Consumption (Gal)5

FY13

FY12

FY11

FY10

FY09

100,000

FY08

MtCO2e per Unit of Revenue

300,000

FY13

FY12

3,000

FY11

0.035

FY10

3,500

FY09

0.040

FY08

4,000

Non-Hazardous Waste (lb.)6
400,000

3.5

350,000

3.0

25% Reduction Goal

14,000,000
12,000,000

300,000

Landscape Irrigation Usage
35% Reduction Goal

6,000,000

250,000
2.0
200,000
1.5
150,000

4,000,000

1.0

100,000

40

FY13

0.0
FY12

0
FY11

0.5

FY10

50,000

FY08

FY13

FY12

FY11

FY10

FY09

FY08

-

FY09

2,000,000

Pounds per Unit of Revenue

Indoor Water Usage

8,000,000

Non-Hazardous Waste per Unitof Revenue

2.5

10,000,000

41GREENING OUR OPERATIONS
Ensuring
Environmental
Compliance
At JSR Micro, compliance isthe minimum standard wemust meet, and it establishes
the baseline of the company’s
credibility and reliability forour stakeholders. Internally,
JSR Micro ensures compliance with all governmental
and voluntary environmental,
health and safety requirements
through annual compliance
audits; new process, equipment and chemical reviews;
new or updated regulation
monitoring; and inspections.

Building Green
In our first CSR report, JSR
Micro discussed our plans topursue LEED (Leadership in
Energy and Environmental
Design) Silver certification on
new building construction to
reduce our energy consump-tion and carbon footprint.
And we accomplished thatin March 2013 when our
new 6,200-square-foot, twostory administration building(12,400-square-foot occupancyarea) received LEED Silver
certification from the U.S.
Green Building Council.
During construction, we took
measures to reduce environmental impacts wherever
possible, such as maximizing
pollution prevention; achieving
a 90% recycling ratio for theconstruction waste; using 40%
recycled content in the building material; and using lowemitting paint, floor finishes
and wood. Additional green
features include a new bicycle
storage area, low-flow water
faucets with sensors, controllable lighting, a permanent
thermal comfort monitoring
system and maximum daylightusage in all regularly occupied

42

JSR Micro provided the annual fire prevention training
with a digital fire extinguisher training system in FY12
and FY13, saving about 12 gallons of gasoline or 0.12
MtCO2e per year7 and preventing the discharge of air
pollutants from the fire, smoke and fire extinguisher. This
training method is not only safer and cleaner, but also
more effective because the system can assess whether
the trainee is standing at an effective distance from thefire and aiming and sweeping the extinguisher correctly.

spaces. These installations
and design decisions reduced
theoretical water and energy
usage from calculated baselines by 38% and 16%, respectively. Although the floor areaof the new building is nearly
three times as large as the
4,200-square-foot office trailer
that the building replaced, thetotal energy and water usage
in FY13 barely increased
compared to the previous year
because the new building is so
efficient.

Becoming a Certified
Green BusinessTo further demonstrate ourenvironmental commitment,
we choose to have our environmental program externallyevaluated through the Bay Area
Green Business Program, afounding member of the California Green Business Programthat recognizes organizations
for their environmental responsibility through compliance,
resource conservation andpollution prevention. After
passing a rigorous application,

inspection and audit process,
JSR Micro received the Bay
Area Green Business certificate from the Mayor of the Cityof Sunnyvale in April 2013. The
certification process provided
multiple benefits by enabling
us to review past improvements and identify additional
improvement opportunities
in our recycling program andwater, energy and material
usage.

A Value Chain Perspective on Environmental
Impacts

Encouraging &Awarding Green Ideas
To promote companywide engagement in our environmental improvement initiatives, wegather suggestions for green
improvements every year andreward the employees with themost innovative ideas. ThroughFireless Fire Extinguisher Training:Greener & More Effective

JSR Micro’s LEED Silver Certified Building

We cannot talk about the true environmental impacts of our business without looking upstream and downstream. The Responsible
Supply Chain Management section (page 30) discusses ourapproach to understanding environmental impacts and practices
within our supply chain and our efforts to ensure that our suppliers
maintain high environmental standards. The Innovation section(page 26) covers how our innovative materials and technologies
help our customers conserve resources and energy.
43

JSR CSR FOCUS

The company regularly undergoes external regulatory
inspections by the Certified
Unified Program Agencies
operated under the California
Environmental Protection
Agency. There was no environmental violation or fine in
FY12 or FY13, and JSR Micro
has never had a hazardous
substance spill that was significant enough to threaten humanhealth, land or bodies of water.

this Green Award program, 35
employees submitted 85 ideas
in FY12, and 15 employees
proposed 31 ideas in FY13.
One of the implemented suggestions was reusing plasticbags to store internal samples,
which saved 1,250 bags in thefirst year. Another employee
idea was to install motionsensor lighting in offices andconference rooms, a changethat saves 5,020 kilowatt-hours(kWh) of energy per year.
Many other employee ideas
have been implemented or are
slated in future improvement
plans.

ENERGY & EMISSIONS
Energy Consumption Within JSR Micro
Energy Consumption

FY12

8

FY13

Fuel consumption from non28,100 GJ
renewable sources. (Natural gas (26,600 Mcf)
to operate on-site boilers)929,700 GJ

Electricity consumption10

27,700 GJ

28,300 GJ(7,684,800
kWh)(7,859,000
kWh)55,800 GJ

58,000 GJ

Total(28,200 Mcf)

GJ = gigajoules | Mcf = thousand cubic feet | kWh = kilowatt-hour

GHG Emissions11
GHG Emissions Indicators

FY12

FY13

Total GHG Emissions(Scope 1 + Scope 2) in MtCO2e

2,990

3,040

Direct GHG Emissions (Scope 1) 1,410

1,500Energy Indirect GHG Emissions(Scope 2)

1,540

1,580

12

GHG Emissions Intensity
Total GHG Emissions per Unitof Revenue in MtCo2e

0.022

MtCO2e = metric tons of carbon dioxide equivalent

JSR Micro takes climate change
and our responsibility tominimize our GHG emissions
seriously. We strive to makea difference by identifying
our daily activities that havesignificant carbon impacts andby planning and executing
reduction initiatives.
The majority of our GHG
emissions are generated
through the use of natural gas
and electricity to operate ourplant, labs, warehouse andadministrative facilities. Theseemissions are fully managed
and controlled in accordancewith applicable regulations set
by the California Air Resources
Board and the Bay Area Air
Quality Monitoring District.
At our current GHG emissions
level, JSR Micro is not subject
to any energy regulation or
the mandatory GHG reportingand cap-and-trade program in
California. The tables below
report our energy consumption and the associated direct(Scope 1) and indirect (Scope2) GHG emissions.

baseline, despite a facility
expansion during that period.
A combination of efforts, inparticular our commitment
to applying green building
standards, contributed to our
results, as described in thefollowing sections. We willcontinue to focus on energy
efficiency and conservation in
our efforts to achieve our new
GHG reduction goal.

In FY12 and FY13, JSR Microgenerated 2,990 metric tonsof carbon dioxide equivalent(MtCO2e) and 3,040 MtCO2e,
respectively. Regardless of thesmall increases in FYI 12 and13, our GHG emissions levels
stayed below our initial goal ofa 10% reduction from our FY08

Although we do not trackother indirect GHG emissions(Scope 3) at this time, we haveseveral initiatives in place
to reduce the carbon impact
related to product distribution
and employee commuting, as
described later in this section.

To promote use of low emitting and fuel-efficient vehicles JSR Microdesignated parking spaces close to its building for drivers of those vehicles.

JSR CSR FOCUS

44

0.024

Focus on Energy &Greenhouse Gas
Emissions“JSR Micro is committed to going “Green” wherever
possible. Sales personnel are now allowed the optionof selecting a hybrid vehicle over a traditional gaspowered vehicle as their company car. The hybrid car
demonstrates to our customers JSR Micro’s commitment to the environment.
The benefits of having a hybrid car are about 50%
fewer stops at the gas pump than previous and having
the knowledge that you are helping to reduce theamount of pollutants going into the atmosphere.”- Rowland WongRegional Sales Manager

45

REDUCING OUR FOOTPRINT
Implementing
Product Distribution
Energy-Saving Projects
Within our Sunnyvale facility,
we made various improvements to reduce electricity
consumption and the related
GHG emissions (Scope 2). The
following table lists energysaving projects in FY12 andFY13 and the estimated annual
reductions in energy use and
GHG emissions.
JSR Micro will increase operational efficiency wherever possible and reduce our footprint
further in the coming years tomeet the new 8% reduction
goal per unit of revenue from
FY13 baseline level by the endof FY15.

We ship our products by ocean
freight and air both nationallyand internationally. Because
the carbon footprint of freightby water is much smaller thanfreight by air, we use oceanfreight shipping wheneverpossible.

We are looking beyond ourfacilities at areas where we canwork to minimize the environmental impact related to ouroperations. Two such areas
are product distribution andemployee commuting, which
Some of our products, however,both hold opportunities forrequire air shipment due toimprovement.
time and/or temperature
constraints or customer
Support forrequirements. In FY12 andGreen Modes of
FY13, efforts to maximize
ocean freight reduced theTransportation
GHG emissions associatedwith product distribution by
Although JSR Micro does not
440 MtCO2e and 860 MtCO2e,
currently track employee comrespectively13.
muting mileage and associated
GHG emissions, we promote
greener transportation options
for our employees.

Estimated EnEstimated Indiergy Savings per rect GHG EmisYear in GJ (kWh) sions (Scope 2)
Reduction per
Year in MtCO2e

Replacement of air-cooled
chiller for the warehouse withan energy-efficient one

30 (8,290)

1.6

Installation of motion sensors for light control in all
offices and conference rooms
throughout the facility

19 (5,020)

1.0Server virtualization with
103 (28,650)
upgraded server system andcapacity throughout the facility

5.4

Total

8.0

46

152 (41,960)

We provide commuter checks
and vouchers to encourageuse of public transportation,
and we offer FasTrak toll tags,
which allow drivers to pay
tolls electronically to avoid
stopping, which minimizes
emissions.
To support the use of electricvehicles, we have dedicatedparking spaces and on-sitecharging stations. In addition
we are planning to upgrade
the current level I EV chargers(120 volts) to level II chargers(220/240 volts).

Furthermore, we are looking
into a project that would
provide company bicycles toencourage employees to bike,instead of drive, to get lunchor run errands in the neighborhood.
Within the company fleet
that we maintain for our sales
employees, we have begun to
introduce hybrid vehicles asa way to reduce our carbon
footprint further. At the endof FY13, 14% of the fleet had
been converted.
JSR Micro will continue to lookfor opportunities to promote
green modes of transportation.

“Breathing fresh air, driving safely, being
physically active, and avoiding excessive
traffic stress are the benefits of taking public
transportation and steps toward to a healthy
lifestyle. Thank you, JSR, for providing that
benefits to us!”

JSR CSR FOCUS

Estimated Annual Energy & GHG Emissions
Reductions14
FY12 and FY13 Projects

Reducing GHG
Emissions Beyond JSR
Micro’s Facilities- May Huynh
Process Engineer 2“The commuter check program at
JSR is a great incentive for me to takepublic transit to avoid the headacheof being stuck in stop-and-go traffic in
the Bay Area, while also being more
green to the environment. It saves metime in the morning to relax and dosome work on the bus as well.”- Joseph Shan
Process Engineer 1

47

WATER
Water Consumption
Water Consumption in Million
Gallons (M3)FY12FY1315Total

8.2 (31,000)

8.6 (32,600)

Indoor Water Usage

3.7 (14,000)

4.0 (15,200)

Landscape Irrigation

4.5 (17,000)

4.6 (17,400)

Estimated Water Consumption Reductions
FY12 and FY13 Projects

Estimated Annual
Reduction in Gallons (M3)

Installation of low-flow regulators on all 2,000 (8)faucets, where possible
Replacement of toilets and urinals withlow flush-volume models

17,000 (64)(62% were replaced in FY12 and FY13.)
Installation of an automatic flow-control 125,000 (470)valve on the bottle washer equipment
Training and posters to promote water
conservation

NA

Total

144,000 (542)

Focus on Water
Conservation &Pollution Prevention
As California continues to experience a historic multi-year
drought, responsible water
management is more criticalthan ever. All our water comesfrom the municipal water supply, which is managed by theCity of Sunnyvale.
Water is an essential raw
material in the productionof our finished products andindispensable in our quality
control processes. In addition,
landscape irrigation consumes
more than half of our water
usage.

Reducing Water Use
Responding to the statewide
drought emergency, we looked
hard at every reduction opportunity and executed as
many changes as possible.
The following table lists water
reduction projects in FY12 and48

Planning Future Water
Reductions
JSR Micro set a new water
conservation goal to reduceusage by 2.5% from the FY13
baseline level by the end of
FY15. Unlike the new reduction goals for GHG emissions
and non-hazardous waste,
the new water conservation
goal is not measured by anintensity ratio because morethan half our water is used forlandscape irrigation, which
is not affected by productionlevels.
JSR Micro will continue towork on both indoor andoutdoor water conservation
to meet the new goal in thenext two years. We are planning to build on the successof the landscape project we
implemented in 2009, which
reduced annual irrigationwater usage by about 30%.
Our goal is to replace as muchas possible of the remaining
grass area with more droughttolerant plants. Within ourfacilities, low-flow toilets andurinals have been effective insaving water, so we will continue to replace the remaining
older models in FY14 and
FY15.

Storm water pollution prevention drill

Water Pollution
Prevention Initiatives
Our dedication to water
conservation runs parallel toour commitment to ensuring
the quality of the water discharged from the site. We havea comprehensive storm waterpollution prevention plan
and an industrial wastewater
management plan.
In FY12 and FY13, we
strengthened both plans
with additional measures.
For example, to improve thequality of the storm water discharged directly from on-sitemanholes to the San Francisco
Bay, we scheduled annual
cleaning on the manhole grate
openings and catch basins tooccur before the start of thewet season in October. The
cleaning will prevent debris
accumulated during the dry
season from being carried to
the Bay. We also placed covers

on all our outdoor recycle/
trash bins to minimize storm
water pollution.
The primary source of industrial wastewater is the deionized (DI) water generated
from our bottle washing andquality control activities. The
DI water is acidic; therefore,
we adjust the pH level on-site,which is the only treatment
required to meet the local
permit specifications fordischarge to the Publicly
Owned Treatment Works of
the City of Sunnyvale. In FY12
we added a totalizer on thewastewater discharge pipeso that we can closely monitor the real-time industrial
wastewater discharge volume
separately from other wastewater generated from thefacility (i.e., sewer waste). In
FY13 we discharged 646,000
gallons (2,500 cubic meters)of industrial wastewater.

49

JSR CSR FOCUS

Mindful of local water shortages, we prioritized the
reduction of water usage asa key objective. In FY12 andFY13, JSR Micro consumed 8.2
million gallons and 8.6 million
gallons, respectively. Our
water usage stayed below thegoal of a 35% reduction from
FY08 despite the new building
installation (see the Building
Green section on page 42) andless rainfall for the landscape.

FY13 and the estimated annual
reductions.

WASTE
Hazardous Waste by Disposal Method16
Year

Amount in
Pounds(Metric Tons)

Disposal
Method:Incinerated

Disposal
Method: Other17

FY12

180,500 (82)98.3%
(177,550 lb. or
81 metric ton)

1.7%
(3,000 lb. or 1
metric ton)

FY13

245,600 (111)99.8%(245,000 lb. or
111 metric ton)

0.2%(600 lb. or 0.2
metric ton)

Non-Hazardous Waste by Disposal Method18
Disposal Method
Amountin Pounds(Metric
Tons)

Recycled

Municipal
Landfill

Intensity(Pounds
per Unit of
Revenue)

FY12285,000(130)

96%(275,200 lb.
or 125
metric ton)

4%
(9,800 lb.
or 5
metric ton)

2.1

FY13

382,700(174)

97%(373,200 lb.
or 170metric ton)

3%
(9,500 lb.
or 4
metric ton)3

50

Our daily manufacturing
and R&D processes result inhazardous waste that must be
managed according to applicable regulations. Under JSR
Micro’s hazardous waste management program, all chemical
waste and chemically contaminated material waste are properly sorted, labeled, inventoried and shipped to certified
hazardous waste treatment,
storage and disposal facilities.
All employees who mightcome in contact with hazardous
waste are fully and regularly
trained on proper handlingand emergency procedures.
Refer to the Workplace Health& Safety section on page 35 foradditional information.
In FY12 we achieved the lowest
hazardous waste volume since
FY08, but the volume increased
in FY13 due to an unexpected
manufacturing plan change. As
one of the most reliable manufacturing plants among JSR’s
global manufacturing sites,
JSR Micro is flexible in accommodating changing businessneeds. This makes it challenging to predict future hazardous
waste volume accurately andplan for total waste volume
reductions. Nonetheless, we
implemented reduction measures wherever possible in thepast two years, including thefollowing two initiatives:• Streamlining our quality
control procedures reduced
chemical and chemicallycontaminated waste.
• A green cleaning policy
implemented in FY12 led to
the replacement of chemicals
used to clean the facility withgreen cleaning products.
Finding further reduction
opportunities will become
more challenging as relatively
easy steps have already beentaken. Still, we will continue
to seek effective conservation
opportunities and set a new
reduction goal by FY15.

Managing NonHazardous
Our approach to the management of non-hazardous waste
is to maximize recycling andreduce waste through multiple
strategies.

Our new goal starting in FY14
is to reduce non-hazardous
waste by 8% per unit of revenue from the FY12 baseline
level by FY15. We are committed to finding ways to meetthis new reduction goal.

In FY12 and FY13, overall
waste volume increased fromprevious years mostly due tothe removal of a 4,200-squarefoot office trailer. This
one-time event generated
metal and other miscellaneous
waste, most of which wasrecycled. With the resourceconservation measures taken
and planned, we expect thatthe non-hazardous waste
volume will go down in the
coming years.

51

JSR CSR FOCUS

Year

Managing Hazardous
Waste

MATERIALS CONSERVATION
Focus on Materials
Conservation & Waste
Reduction
JSR Micro uses materials in the
production process that resultin both hazardous waste andregular non-hazardous waste.
Front-end material usage
affects natural resources andlocal ecosystems while backend waste is a source of GHG
emissions and other environmental pollutants. We believethat we can reduce theseenvironmental impacts at bothends by reducing the amountof new material purchasedor used on the front end andcarefully managing our waste
streams.

JSR Micro has a comprehensive
recycling program in place:
We divert paper, wood, glass,plastic, cardboard, drums andany other recyclable material
from the landfill. In FY12 andFY13, we achieved recycling
ratios (diversion rates) of 96%
and 97%, respectively.
The inspections and wasteassessments we received
during the Bay Area Green
Business certification process
helped us identify many
improvement opportunities.
Although we recycle morethan 96% of non-hazardous
waste, the waste assessments
revealed that our landfill bin
still contained recyclable
material, such as cardboard,paper, bottles and cans, whichamounted to 5% of the total
trash. In order to promote morethorough waste separation in
the facility, we are planning to
replace the current individual
recycling bins with custommade recycling receptacle
centers, on which clear signs
and educational information
will be posted.

Conserving Resources
to Reduce Waste
We are pursuing multiple strategies to reduce our material
usage and subsequent waste,
as described on the next page.

52

Replace Disposables With Durables

Promote Sustainable Purchasing Practices• In FY12 the use of Styrofoam cups was discontinued, and ceramicmugs with a company logo and a sustainability message were
provided to all employees and made available to all visitors. As
a result, approximately 25,000 Styrofoam cups per year were
diverted from the landfill.19• In FY12 we established a sustainable purchasing policy in which
JSR Micro set a target for at least 60% of the office consumables
purchased annually to contain at least 10% recycled content. We
converted office products such as office paper, corporate paper
products, notebooks and toner cartridges to the ones containing
10% to 100% post-consumer or post-industrial materials whereverfeasible and increased the green office product ratio from 29% in
FY12 to 86% in FY13.

• In FY13 we eliminated the use of disposable plastic forks, knives
and spoons and paper plates and replaced them with durable
and washable utensils and plates, diverting approximately 3,500
pounds or 1.6 metric tons of waste from the landfill per year.20• Eighty-five percent of our bathrooms have air hand dryers
instead of hand towels. By FY15 we expect to replace hand towels
with air hand dryers in all our bathrooms.

• Under the same sustainable purchasing policy, JSR Micro also
made sure that 90% of the newly purchased lamps contain no morethan 90 picograms of mercury per lumen-hour to reduce the toxicity of the lamp waste.

Reduce Material Usage• In FY12 and FY13, the use of office paper was
reduced by e-filing, e-documents, e-signature, efaxing and consolidation of fax machines. Various
departments are planning further e-conversions incoming years.
• Silicon wafers are used for product quality
testing, and most of them are cleaned by a vendor,
sent back to us and reused. In FY12 and FY13, wereduced the use of wafers by streamlining quality
control processes.
• Because most of our products are hazardousand need to meet the packaging specifications
in dangerous goods transportation regulations,finding the right approaches to reduce packaging
material is challenging. Despite these constraints,
we managed to reduce the use of packaging wraps
by 336 pounds per year in FY13 without compromising the integrity of our packaging. We also
started to reuse the black plastic bags that protect
our photosensitive chemical samples from lightduring internal storage and reduced our usage
by 1,250 bags per year in FY13. We are currently
looking into whether we can reuse the Styrofoam
used as a heat insulator in our incoming shippingboxes, which if feasible will be implemented in
FY14 or FY15.
53

JSR CSR FOCUS

Although not all reduction
goals for total waste volume
were met in FY12 and FY13
due to operational reasonsdescribed below, we are proudthat all departments diligently
identified many material
conservation opportunities andimplemented them quickly. We
will continue to approach our
reduction goals for hazardousand non-hazardous wasteby emphasizing sustainablepurchasing practices andoptimization of our internal
operations.

Maximizing Recycling

EMPLOYEE DEVELOPMENT & ENGAGEMENTJSR Micro’s employees are the key to the company’s success.
Only through successful engagement of our employees do wereach our goals. We engage employees by actively managing
their ongoing development as well as by creating an enjoyable
workplace. This section discusses our approach to these twosides of engagement and presents the key figures and indicatorsof our workforce.

Retaining Talent by
Engaging Employees:
An Interview with
HR Director Phyllis
MoraccoThere is not a single answer
to that. JSR Micro has a strong
culture that brings people
together. We offer a very
competitive compensation
and benefits package, butmore importantly we offer
employees the opportunity tocontinue to learn and grow intheir careers, which is important to most high-technology
professionals. Why would they
stay otherwise? Helping ourpeople grow means helping
the company grow.
How does HR facilitate thislearning culture?
Individual development plansplay a central role in this. To

In addition, employees’
individual development goals
are aligned with the overall
strategy and purpose of thecompany. In this way, thereis transparency in how each
employee’s individual efforts
contribute to JSR Micro’s
overall success. There is noquestion about the value
and impact of their work andperformance to the company
overall.
JSR Micro is an innovationcompany. To stay innovative,
we need employees who arewilling to learn and grow. Because this is so important to us,
we include employee growth
as a metric in our balanced
scorecard.

Training and education must
be an inherent part of this.
How does the HR department
meet employees’ development
needs?

In response to the individual
development plans, performance evaluations andconversations with managers,
we identify individual andgroup training needs. Overthe years, we have developed
a comprehensive catalog oflearning opportunities. The
offering is diverse: We support
on-site classroom training,off-site training, desktop training, individual training for new
managers, technical training,you name it. Also, our own
subject matter experts deliver
in-house training in their fieldsof study. Of course, there isalso a lot of cross-training
and on-the-job training thattakes place every day in eachdepartment.
For employees who are goingback to a university to finish
their bachelor’s or master’s
degree, or who want to learn

a new technology or skill, we
have an educational assistanceprogram. The requirement
is that the education is jobrelated or related to a function
the employee wants to performin the future. In return, we
reimburse up to $5,000 a year
for completing specific learning programs and achieving acertain grade.

You mentioned that the JSR
Micro culture is an importantpart of the company’s successful
talent retention. Can you elaborate on that?
JSR Micro is a family-oriented
company. Families tend to takecare of each other, and that is
also something you see at JSR.
For example, we recently had
a power outage on a Sunday.
After being notified about
it, six employees voluntarilycame to our facility to checkthe status of our equipment or
to lend a hand if we needed
their help in getting the equipment back online. At the sametime, JSR Micro invests a lot in
the growth of our employees.

We have never had a layoff in
our history despite the 2008 recession and the cyclical natureof the semiconductor industry.
We care for our employees,
and in return they support JSR
Micro.
JSR Micro is also a very diverse
company in terms of age, race,
ethnicity and gender. This ispartly a reflection of Silicon
Valley’s population and partly
due to how the company has
grown over the years. This
diversity creates many opportunities for cross-pollination,
which we actively foster byteaming up experienced
engineers with new engineering graduates. Such pairings
promote the transfer of very
valuable technical knowledge
and infuse new perspectives.
This is an organization ofpeople who really want toimprove, learn and grow. And
finding new ways to keepthem engaged is an ongoingchallenge that keeps my work
inspiring.

“The JSR Micro education assistanceprogram had encouraged me to earn a
Master’s degree. The program makes mytuition more affordable. Working towards
earning a degree and meeting my goals has
already helped me advance my career eventhough I have not graduated yet.”- Jeff Kmiec
Development Engineer 1
JSR Micro Employees
54

Phyllis Moracco55

JSR CSR FOCUS

JSR Micro is like a tight-knit
family. Employees are engaged
on the job, as well as after
business hours in volunteering and wellness activities.
Despite being in the middle oftechnology-driven, opportunityrich Silicon Valley, we maintainturnover rates at more than 15%
below the Bay Area average.
In this interview, HR Director
Phyllis Moracco discusses someof the keys to JSR Micro’s success in retaining a talented andengaged team.

Why do most JSR Microemployees tend to stay with thecompany?

create the development plans,managers and employees work
together to identify the training
and skills that the employee
needs and wants in order toadvance within the company—
either in the employee’s current job family or somewhere
else within the company.

FY13 JSR in Numbers
Contract Type
Regular21
Temporary
Location
Sunnyvale HQ
Other CA OfficeOutside CA OfficeAgeUnder 30
Age 30–50
Over 50
Race
AsianBlack/African American
Hispanic/Latino
Other

Male
100
4

Female
54
2

Total
154
6

83
2
15

48
3
3

131
5
18

6
63
31

1
30
23

7
93
54

45
6
11
38

38
2
1
13

83
8
12
51

Employee Turnover22,23

New Employee Hires25

Year

NumberYear

NumberFY11FY12
FY1324

5
6
12

FY11
FY12
FY1326

15
8
19

56

Turnover
Rate
3.6%
3.9%
7.9%

New Hire
Rate
11.8%
5.3%
12.5%

WORKFORCE SNAPSHOT57

CREATING AN ENJOYABLE WORKPLACE
Wellness &Volunteering
There is a “work hard, playhard” aspect to our culture,
which acknowledges both how
we strive for excellence andhow we enjoy relaxing andhaving fun. Our wellness andvolunteering activities help
us feel connected as a teamwhile doing something goodfor the local community andourselves. Although some mayview these as side activities,
we are convinced that they are
key to our engaged employee
culture and success.

From the teams’ recommendations, the company sponsors
select activities as highlighted.
In addition, we encourage theparticipation of family members for all activities, which
fosters the family feeling thatcharacterizes the JSR culture.

SpringPromoting Health &Wellness
To support employees’ health,
we offer an on-site biometricscreening program, whichmeasures glucose, cholesterol,
hypertension and BMI (bodymass index) levels.

e Packfor the Lucil
lk
a
w
ty
ri
a
h
l
C
n’s Hospita
ard Childre

AutumnSt. Anthony’s Fund Drive
Salvation Army Food Drive

The anonymous metrics also
help us track the effectivenessof our wellness activities.
The screening program had
a 68.9% participation rate in2012, and we expect increased
results for the second round ofscreenings scheduled in April
2015.
A full summary of our wellness
activities can be found in JSR
Micro’s 2012 CSR report.

SummerSupport for South Bay BlueStar Moms
Summer Scamper Charity
Walk
Backpack Drive
KQED volunteering activity

WinterAdoptive and Foster Parent
Association Toy Drive
Volunteering for toy
distribution

Year-Round Wellness and VolunteeringgteerinVolun

Save the B

ay’s NativePlant Nur

ser y

“At JSR, we are blessed.
We like to share our blessings.”- Theresa Ramos-Duvon
HR Business Partner

onlevisilic Te
D Pub

E

at KQ

“Healthy and attentive employees are key for good performancein the workplace. With its holistic mind-body approach, yoga not
only offers physical exercise allowing for key body stretches but
goes beyond into calming your mind to a more relaxed state. It isgood for reducing ergo-related injuries too.”- Shalini Sharma
Senior Development Engineer

58

Clean the Beach
Collection of socks, blankets and outerwear for a
nearby homeless shelter
Perfect Dog Rescue

JSR CSR FOCUS

Throughout the year, the Wellness Buddies and Goodwill
Hunters teams consult with
employees to select andorganize wellness and volunteering activities that they feelpassionate about. The teams
represent the whole company
in terms of age, gender, ethnicity and work levels, making theidentification of activities an
inclusive process.

Many of our company-sponsored activities combine teambuilding, physical fitness andsupport for charitable causes.
One of our most anticipated
events is the Summer Scamper
for the Lucille Packard Children’s Hospital, a fund-raisingcharity walk for adults andchildren, in which a team of
JSR Micro employees and theirfamilies participate each year.

Yoga at the JSR

Office59

THE ROAD AHEAD

JSR Micro’s key values and competencies—quality and innovation—aredriving our CSR program. Developing
the program has been less about
learning new approaches than aboutlooking at existing practices througha wider lens. It has brought key socialand environmental aspects of operations into greater focus.
Through our efforts in previous
years, the CSR program has become
well-integrated in our management
systems. It is now time to expand andleverage the program. In the coming
period, we look forward to engaging
with our employees more actively
about sustainability, as well as working closely with organizations acrossour supply chain to spur continued
improvements.

60

61

GRI REPORTING INFORMATION
Defining Report
Content [G4-18, G4-26]

For JSR Micro’s second reporting cycle, the CSR team
updated the report content
definition process to incorporate changes related to the
GRI G4 Guidelines and makefurther improvements.
The team developed a list of
potential report topics basedon our previous materiality
matrix, topics in JSR Corporation’s and customers’ CSR/
sustainability reports, industry
and sustainability trends, andindustry standards such as the
EICC Code of Conduct.
To assess the importance of
these relevant aspects to stakeholders, the team conducteda survey of individuals fromour key stakeholder groups:
employees, business partners,
customers, suppliers and the
local community.
In addition, the impact of
aspects on JSR Micro’s operations was assessed by scoring
the aspects with a fixed set ofassessment criteria:

What is the potential
competitive advantage to JSR
Micro?
What is the potential
impact to the long-term strategyof JSR Micro?
62

The threshold for a material
aspect (topic) is that it has amedium to high priority forstakeholders and a significant(medium to high) impact on
business operations. This
threshold left out topics that
we intuitively felt should also
be included in the report due
to their level of impact orimportance to stakeholders.
We therefore identified five
topics as key relevant topics,
which are covered in lessdetail than the material topics: Oversight of CSR, supply
chain management, effluentsand waste (non-hazardous),
environmental impact of products, and materials/resource
consumption.
The team finalized the listof material aspects and key
relevant topics for review andapproval by executive management.

Material Aspects &Boundaries [G4-19, G4-20,
G4-21]

As part of the report content
definition process, the teamassessed whether the impacts
related to the selected material topics occurred within

the organization or outside it.
The impacts of most aspects
occur within JSR Micro. All
aspects that do not fall under
this definition are regarded as
outside the boundaries of JSR
Micro.

The table on the right lists thematerial aspects identified andtheir associated boundaries(where impacts occur for eachmaterial aspect: within theorganization or outside it).

Changes in Report
Content [G4-23]
The materiality assessment
for the 2014 report resulted insome changes to the scope ofthe report (the topics covered)compared to the 2012 report.
Several new aspects wereadded: quality management
and operational excellence,business continuity and risk
management, innovation, andsupplier human rights assessment.

Material Aspects & Boundaries Overview
GRI Category/
Subcategory
SocialSocialJSR Micro topic
JSR Micro topic

Environmental

Environmental
JSR Micro topic
Social/Labor Practices& Decent Work
JSR Micro topic
Environmental
Environmental
Social/Human Rights

Material Aspect[G4-19]Health & Safety:
Employees
Health & Safety:
Customers
Quality Management &Operational ExcellenceBusiness Continuity &Risk Management

Boundary Within
Organization [G4-20]
JSR Micro

Boundary Outside ofOrganization [G4-21]

JSR Micro

Customers

JSR Micro

Customers

JSR Micro

Chemical Waste
Management(Hazardous Waste)
Energy & Greenhouse
Gas Emissions
Innovation
Talent Retention
Employment
Training and Education
Market ShareCompliance
Water
Supplier Human Rights
Assessment

JSR’s research andmanufacturing facilities*
JSR Micro*

JSR Corporation
Business Partners
Suppliers
Customers

Suppliers
Customers

JSR Micro
JSR Micro

JSR Micro
JSR Micro
JSR Micro*
JSR Micro

Suppliers
Suppliers* The boundary of reported environmental impacts is limited to the plant, labs, warehouse and administrative facilities inSunnyvale, California, where the majority of impacts occur.

Diversity and corruption, while
important areas, were assessed
below the thresholds for material and relevant topics to becovered in the report. Nonetheless, they remain important
areas that are closely managed
within JSR Micro, through ouraffirmative action plan, codeof conduct, mandatory training
and other processes. Refer toour 2012 CSR report for additional information on these
topics.

GRI

What is the potential
financial impact to JSR Micro?

The team also interviewed
selected stakeholders to
add depth to the information
gathered. With the resulting
input, the team graphed thestakeholder and operational
assessment results on a materiality matrix (page 18).

63

External Assurance &Report Development
JSR Micro does not have apolicy for external assurance,
nor did JSR Micro seek external assurance for this report.
Data relating to quality and environmental, health and safety
are measured and monitored
through our ISO 9001:2008,
ISO 14001:2004 and OHSAS
18001 certified management
systems. These certifications
are subject to yearly review by
independent external auditors.
In addition, we worked witha third-party firm, Concept
Green LLC, a certified B Corporation that specializes in GRI
reporting. Concept Green performed the Application Level
Check for our first report. For
this report, Concept Greenassisted with the development
and editing of the report andreviewed it to ensure that thedisclosures fulfill the GRI G4
requirements for a report
prepared ‘in accordance’ with
the Core option.

In developing this report,
the CSR team followed the
GRI Principles for Defining
Report Content to identify
and prioritize the material
aspects to cover in the report,
as described in the Defining
Report Content section that
follows, and the GRI Principles
for Defining Report Quality toensure that the report provides
a balanced and credible
discussion of our CSR impacts
and approaches to managing
them.

Key Topics &Concerns Identified
Through Stakeholder
Engagement [G4-27]
As discussed in the Our
Stakeholders section and summarized on the following page,
we engage with key stakeholders on a regular basis. During
on-site customer audits andreview meetings, and in ourcustomers’ supplier scorecards
and questionnaires, several
trends related to CSR topics
and concerns have emergedthat influenced the development of our CSR program andthe content in this report.
Our customers are increasingly concerned abouttransparency on CSR impacts
within our operations and in
our supply chain. Many haveadopted the EICC Code of
Conduct and expect JSR Microto manage risks and impacts
in our supply chain in a similarmanner. An area of particularconcern for our customers is
ensuring human rights protection with their supply chains;therefore, supplier humanrights assessment was prioritized as a material aspect.
Lastly, avoiding the use of
conflict minerals is a key issue
within the electronics industry
and for many of our stakeholders. Because JSR Micro does
not use conflict minerals in
our products, the topic was notassessed as material.
We believe that the disclosuresin this report address our
stakeholders expectations andconcerns.

Engaging Our Stakeholders [G4-26]
EMPLOYEES
•
•
•
•
•
•
•
•
•
•
•
•

Proactive open-door policy
Quarterly employee meetings
including Q&A sessions
Employee satisfaction surveys
Quarterly e-newsletter(“Focus In”)
Information sessions throughbrown bag lunches
Intranet-based online forum(“Inside JSR”)
Departmental and staff
meeting communications
Internal feedback systemthrough interdepartmental
surveysIntranet-based suggestionbox
CSR employee survey
Corporate ethics survey
Ethics hotline

CUSTOMERS
•
•
•
•
•
•
•
•
•

INDUSTRY &TRADE ORGANIZATIONS•••

Maintain leadership role
within industry by excellingin innovation
Maintain leadership role
within trade organizations
Participate in and contributeto industry and trade organization training programs

Customer report cards/
scorecards
Management/Executive
review meetings with customers
Onsite customer audits
Online dialogue with customers through company website
Participation in social networking websites
CSR and ethics webinars
Completion of EICC code of
conduct risk assessments
Participation in industry
tradeshows, seminars, andconferences
Online CSR survey

COMMUNITY
•
•
•
•
•
•
•

GOVERNMENT & REGULATORYAGENCIES•••••

Attend workshops andtraining programs
Subscriptions to government/
regulatory newsletters
Membership in environmental, health, and safety councils
Onsite inspections and auditsPartner with community
advocacy groups

Employee volunteering incharitable activities
Membership in sustainability
focus group with neighborcompanies
Participation in charity fundraising events
Partner with local
universities to promoteinternship program
Donate products, services,and used goods to nonprofit
organizations
Donations to charitable
institutions with matching
employee donation program
Online CSR survey

SUPPLIERS
•
•
•
•
•

Assess suppliers’ quality
operating systems
Routine supplier audits
Administer supplier report
cards
Conduct business review
meetings
Online CSR survey

GRI

64

65

GRI CONTENT INDEX FOR ‘IN ACCORDANCE’ CORE
General Standard Disclosures

Materiality Disclosures Service

G4 ID

Description

Page or Link

Through the Materiality Disclosures Service GRI verifies the correct location of general standard

G4-9

Scale of the organization.

Our Company &No
Stakeholders, page 10

Reason for partial disclosure: Financial information is omitted because it
is confidential; it is reported to internal
stakeholders. As a private company and awholly owned subsidiary of JSR Corporation, JSR Micro does not publish financial
data, financial statements or the entities
that are included in such statements. However, our parent company’s annual reports
include JSR Micro’s performance. Referto the Fine Chemicals and Other ProductBusiness section of JSR Corporation’s 2014
Annual Report (http://www.jsr.co.jp/jsr_e/
pdf/ir/full.pdf).

G4-10

Employees by employment contract and gender.

FY13 JSR in Numbers,
page 56

No

A substantial portion of JSR Micro’s work
is not performed by workers who arelegally recognized as self-employed, orby individuals other than employees orsupervised workers.

G4-11

Percentage of employees coveredby collective bargaining agreement

GRI Content Index,
page 66

No

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

G4-12

Description of organization’s supply chain

Responsible Supply
Chain Management,
page 30NoG4-13

Significant changes during thereporting period regarding size,
structure, or ownership.

About This Report,
page 3No

G4-14

Commitments: Explanation ofwhether and how the precautionary approach or principle isaddressed.

Business Continuity& Risk Management/
Risk Management
Within JSR Micro,
page 22No

G4-15

Commitments: Externally developed economic, environmental,
and social charters, principles, orother initiatives.

Commitments toExternal Initiatives,
page 19

No

G4-16

Commitments: Organization-level
memberships.

Memberships inExternal Initiatives,
page 19

No

disclosures G4-17 to G4-27, in the GRI content index as well as in the text of the report.

General Standard Disclosures
G4 ID

Description

Page or Link

External
Assurance

Direct Answer/Explanation for
Omission(s)/Notes

STRATEGY AND ANALYSIS
G4-1

President’s Letter,
page 6No

G4-3

Name of the organization.

About This Report,
page 3G4-4

Primary brands, products, and/or
services.

Our Company &No
Stakeholders, page 10
Our Products,
page 12www.jsrmicro.com

G4-5

Location of organization’s headquarters.

Our Company &No
Stakeholders, page 10

Sunnyvale, California

G4-6

Number of countries where theorganization operates.

Our Company &No
Stakeholders, page 10

G4-7

Nature of ownership and legal
form.

Governance, page 11

No

G4-8

Markets served.

Our Company& Stakeholders,page 10;
Our Products,
page 12No

ORGANIZATION PROFILE

66

No

JSR Micro, Inc.

Privately held corporation

Direct Answer/Explanation for
Omission(s)/Notes

New partnerships and joint ventures;
Renovation of research laboratory inSunnyvale (100% more employees);
New JSR Micro life sciences research anddevelopment laboratory in San Diego,
California, opened.

IDENTIFIED MATERIAL ASPECTS AND BOUNDARY
G4-17

List all entities included in the or- JSR Micro Inc.
ganization’s consolidated financial
statements or equivalent documents.

No

G4-18

Process for defining report content and the Aspect boundaries.

No

Identifying Our CSR
Priorities, page 18
Defining Report Content, page 62

GRI

Statement from the most seniordecision-maker of the organization.

External
Assurance-

67General Standard Disclosures

Specific Standard Disclosures

G4 ID

Description

Page or Link

External
Assurance

Direct Answer/Explanation for
Omission(s)/Notes

G4-19

List all the material Aspects identified in the process for defining
report content.

Identifying Our CSR
Priorities, page 18

No

Material topics are also listed with associated boundaries in the CSR Progress andPerformance Summary table on page 17
and in the GRI Reporting Information/Defining Report Content section, page 63.

G4-20

Aspect Boundary within the organization for each material Aspect

Material Aspects &Boundaries, page 63

No

G4-21

Aspect Boundary outside of theorganization for each material
AspectMaterial Aspects &Boundaries, page 63

No

G4-22

Explanation of the effect of any
restatements of information provided in earlier reports, and thereasons for such restatement.

About This Report,
page 3No

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

About This Report,
page 3
Changes in Report
Content, page 62

G4-23

No

GHG emissions data recalculation for
FY08 to FY11 did not have an effect on
JSR Micro’s overall performance trend or
reduction plans. Updated data is reported
in endote 8.
Changes in topics (report scope) are discussed in the GRI Reporting Information
on page 62. No change occurred in theboundary for performance indicators.

Material Aspects

DMA and Indicators

Location and Notes

List of stakeholder groups engaged by the organization.

Our Stakeholders,page 10No

G4-25

Basis for identification and selection of stakeholders with whom toengage.

Our Stakeholders,page 10No

G4-26

Approaches to stakeholder engagement.

Our Stakeholders,page 10Engaging Our Stakeholders, page 65

No

G4-27

Key topics and concerns that havebeen raised through stakeholder
engagement.

Key Topics & Concerns Identified
Through Stakeholder
Engagement, page 64

No

G4-DMA

Our Approach to Environmental Management, page 38
Ensuring Environmental Compliance,
page 42

No

G4-EN29

Ensuring Environmental Compliance,
page 42
There were no environmental violations orfines in FY12 or FY13.

No

G4-DMA

Our Approach to Environmental Management, page 38
Ensuring Environmental Compliance,
page 42Managing Hazardous
Waste, page 50

No

G4-EN23

Hazardous Waste by
Disposal Method,
page 50

No

G4-EN24

Ensuring Environmental Compliance,
page 42
JSR Micro has never
had a hazardous substance spill that wassignificant enough tothreaten human health,land or water bodies.

No

G4-DMA

Our Approach to Environmental Management, page 38
Focus on Energy &Greenhouse Gas Emissions, page 44

No

G4-EN15

GHG Emissions,page 44

No

G4-EN16

GHG Emissions,page 44

No

G4-EN18

GHG Emissions,page 44

No

G4-EN19

Estimated Annual Energy & GHG Emissions
Reductions, page 46

ENVIRONMENTAL
Compliance

Effluents and Waste(Chemical Waste)

Emissions

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

About This Report,
page 3No2012 and 2013 fiscal years (April 1, 2012 toMarch 31, 2014)

G4-29

Date of most recent previous
report (if any).

About This Report,
page 3No

April 13

G4-30

Reporting cycle (annual, biennial,etc.).

About This Report,
page 3

No

Biennial

G4-31

Contact point for questions regarding the report or its contents.

About This Report,
page 3No

Phyllis Moracco
Human Resources Director
Phone: (408) 543-8800
Fax: (408) 543-8873
Email: sustainability@jsrmicro.com
JSR Micro, Inc.
1280 N. Mathilda Avenue
Sunnyvale, California 94089
USA

G4-32

68

GRI Content Index: Table identifying the location of the Standard
Disclosures in the report.

GRI Reporting Information, page 66

Reductions are partially No
reported based on
estimates (actual values
are not available).

GRI

G4-28

External Assurance(G4-19)STAKEHOLDER ENGAGEMENT
G4-24

OmissionsNo

69

Specific Standard Disclosures
Material Aspects

DMA and Indicators

Location and Notes

Omissions

Specific Standard Disclosures
External Assurance(G4-19)EnergyWater

Material Aspects

DMA and Indicators

Location and Notes

DMA

Our Approach toEnvironmental Management, page 38
Focus on Energy &Greenhouse Gas Emissions, page 44

No

G4-LA1

Employee Turnoverand New Employee
Hires, page 56

No

G4- EN3

Energy Consumption Within JSR Micro,
page 44

No

G4-EN6

Estimated Annual Energy & GHG Emissions
Reductions, page 46

Reductions are partially No
reported based on
estimates (actual values
are not available).

G4-DMA

Our Approach to Environmental Management, page 38
Focus on Water Conservation & Pollution
Prevention, page 48

No

Water Consumption,
page 48

No

Talent Retention: Training and Education

G4-DMA

Retaining Talent by
Engaging Employees,
page 54

No

G4-LA9Not Reported

DMA

Supplier Human Rights
Assessment, page 31
Our Approach to Supply Chain Management,
page 31No

G4-HR10Evaluating Potential
New Suppliers, page 33
One new supplier was
screened during the reporting period (100%of new suppliers).

No

Customer Health and
SafetyCustomer Health &Safety, page 34

No

G4-PR1

Our Approach to Safe
Product Use, page 34
All chemicals and theirpackages are assessed.

No

G4-PR2Customer Health &Safety, page 34
JSR Micro has neverexperienced a regulatory or non-regulatory
health and safety compliance issue for any ofour products.

No

Product and Service
Labeling

G4-DMA

Ensuring Safety
Through Product Labeling & Hazard Communication, page 34

No

G4-PR3

Ensuring Safety
Through Product Labeling & Hazard Communication, page 34
Safety data sheets andlabels are developed
for all R&D samples
and commercial
products shipped tocustomers.

No

Talent Retention: Employment

70

Workplace Health and
Safety, page 35
For additional information on workforce
programs that provide
education, counselingand prevention related
to non-occupational
diseases (G4-DMAb), refer to Promoting
Health and Wellness,page 58.

No

G4-PR4

Ensuring Safety
Through Product Labeling & Hazard Communication, page 34
JSR Micro has never
had a chemical label
or SDS noncomplianceviolation.

No

G4-LA5Engaging Employees in
Safety, page 37

No

G4-DMA

Retaining Talent by
Engaging Employees,
page 54
G4-DMA-b: Our Approach to Supply Chain
Management, page 31

No

GRI

G4-DMA

SOCIAL: LABOR PRACTICES & DECENT WORK
G4-DMA

JSR Micro is currentlyNo
restructuring and integrating the systems thattrack training hours. In
JSR Micro’s next CSR
report, we will reporttraining hours and an
updated goal.

SOCIAL: PRODUCT RESPONSIBILITY

SOCIAL: HUMAN RIGHTS

Employee Health and
Safety (Occupational
Health and Safety)

External Assurance(G4-19)G4-EN8Supplier Human Rights
Assessment

Omissions

NON-GRI MATERIAL TOPICS (DEFINED BY JSR MICRO)
Business Continuity &Risk Management

G4-DMA

Business Continuity& Risk Management,
page 22

No

71

Specific Standard Disclosures
Material Aspects

DMA and Indicators

Location and Notes

Omissions

External Assurance

EICC RA2 Risk Assessment (Number of High
Risks)

Supply Chain Risk Assessment, page 23

No

G4-DMA

Innovation, page 26

No

Research Publications

Research Publications,page 27No

G4-DMA

Innovation & Market
Share, page 27

No

Market ShareNot reported

G4-DMA

Quality Management,
page 24

No

Total Cost of Quality as
a % of Sales

Evaluating Quality Performance, page 25

No(G4-19)Innovation

Market Share

Quality & Operational
Excellence

Performance indicatoris omitted because it isconfidential.

No

GRI

72

73

ENDNOTES
1. In 2007, Cost of Quality was
tracked per calendar year.
In subsequent years it was
tracked per fiscal year, inalignment with other businessprocesses.

2. Although GHGs are the primary atmospheric emissions
from our operations, a small
amount of sulfur oxides andnitrous oxides are released
during the testing or emergency use of our backup generator. Due to the low amounts at
infrequent intervals, these air
emissions are not considereda key environmental impact
for discussion in this reportbeyond their overall management within our environmental
management system.
3. This report establishes a
new base year for environmental reduction goals. In the 2012
CSR report, we reported a
10-year goal period to achieve
specific reductions in GHG
emissions, water use and wastefrom a FY08 baseline. We met
most of these environmental
goals earlier than the due dateand have therefore establisheda new set of environmental
reduction goals for FY15 using
FY12 as the new base year forthe non-hazardous waste goal
and FY13 as the baseline for
the GHG emissions and water
goals.
4. FY12 had the lowest hazardous waste level since FY08, but
an unexpected manufacturing
plan change contributed to anincrease in FY13.
74

5. The base year for the
initial 35% reduction goal was
FY08; FY13 represents our
new base year for measuringperformance in relation to our
new reduction goal for water
consumption.
6. The increases in FY12 andFY13 are mostly due to the removal of an office trailer, mostof which was recycled. Thebase year for the initial 25%
reduction goal was FY08; FY13
represents our new base year
for measuring performanceto our new reduction goal forthe amount of non-hazardous
waste per unit of revenue.
7. The conversion factor was
obtained from U.S. Energy
Information Administration.

MtCO2e to 3,500 MtCO2e; andFY11 decreased from 3,300
MtCO2e to 2,700 MtCO2e.
9. Fuel consumption from nonrenewable sources excludes
fuel used for company-owned
vehicles.
10. JSR Micro does not generate any renewable energy;
however, approximately 19%
of our electricity purchasedfrom PG&E is generated fromrenewable sources (based on
PG&E’s 2012 Electric PowerMix data available at pgecorp.
com/sustainability/bu04_energy_future.jsp).

11. GHG emissions arecalculated based on emission
factors published in the PG&E
Greenhouse Gas Emission
8. [G4-22] The emissions
Factors Info Sheet, last updated
values for FY08 throughApril 2013 and available at
FY11 were recalculated afterpge.com/includes/docs/pdfs/
the publication of our 2012
shared/environment/calculaCSR report based on the
tor/pge_ghg_emission_facemission factor adjustments
tor_info_sheet.pdf. The emismade by PG&E; however, thesion factor for FY13 is based
adjustments did not have anon the CPUC GHG Calculator,
effect on JSR Micro’s overall
which provides an indeperformance trend or reducpendent forecast of PG&E’s
tion plans. The base year foremission factors as part of athe initial 10% reduction goalmodel on how the electricity
was FY08; FY13 represents our sector would reduce emissions
new base year for measurunder AB 32, the California
ing performance to our new
Global Warming Solutions Act
reduction goal for GHG emisof 2006. Emission factors forsions per unit of revenue. GHG FY08 to FY12 are based onemissions restatements from
PG&E’s third-party-verified
data reported in the 2012 CSR
GHG inventory submitted toreport: FY08 increased fromthe California Climate Action
3,700 MtCO2e to 4,000 MtCO2e; Registry (2008) and The CliFY09 remained 3,500 MtCO2e; mate Registry (2011).
FY10 decreased from 3,400

12. FY13 represents our new
base year for measuringperformance in relation to our
new reduction goal.
13. The conversion factors
were obtained from the report
Smart Goods Transport by the
Low-Carbon Leaders Project,
an initiative supported by the
UN Global Compact and WWF.
14. The energy savings were
calculated based on the energy saved by the new installations using information fromthe manufacturers. The emissions calculation follows themethod for calculating indirect
GHG emissions, as describedin endnote 11.
15. FY13 represents our new
base year for measuring performance to our new reductiongoal.
16. Source: the informationon the disposal methods forhazardous waste was provided
by our certified waste management contractor.
17. Other: Waste is treatedusing methods such as reduction, destruction, oxidation andprecipitation, and the filteredsolids are stabilized and disposed of in municipal landfills.

18. Source: The informationon the disposal and recycling
methods for non-hazardous
waste was provided by ourcertified waste management
contractor.
19. The calculation is based on
the estimated number of Styrofoam cups used by employees
and visitors per day multipliedby 260 business days.
20. The savings calculation
is based on the waste audit
report received from the Cityof Sunnyvale in 2013, which
revealed that 30% to 40%of the trash picked up every
week was plastic utensils andpaper plates.

23. Due to the small size of JSR
Micro’s workforce, segmentation of employee turnover databy age, gender and region is
not calculated.
24. In FY13 a large number of
employees decided to leave
the Bay Area.
25. See note 23.
26. See note 24.

21. Regular describes employees who work under an indefinite employment status. All 154
regular employees work fulltime. JSR’s total workforce is
160 employ-ees, including six
temporary employees. Due tothe low number of temporary
employees, reported segments
are for regular, full-time employees.
22. JSR Micro’s goal is to maintain a turnover rate at 15%
below national average. The
average turnover rate in the
U.S. is 18.3% (Source: Radford
Survey).

Acknowledgements
This report was made possible by the joint collaboration of many contributors. We would liketo thank all of those who contributed and worked on creating this CSR report.
75

JSR Micro 2014 Corporate Social Responsibility Report
1280 North Mathilda Avenue| Sunnyvale, CA 94089| United States
Phone 1. 408.543.8800 | Fax 1.408.543.8996 | email sustainability@jsrmicro.com
www.jsrmicro.com
76

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