The TDK Group's Important CSR Issues

Develop and Prosper in Harmony with the Global Environment

Develop and Prosper in Harmony withthe Global Environment
ImportantThemes

Increasing corporate value by reducing
environmental impact at every life cycle stage■ Reduce environmental load throughout life cycle stages■ Creating a framework for gauging product contributions

Reduce Environmental Load throughout Life Cycle Stages
TDK Environmental Vision 2035
At TDK, we believe that long-term environmental action plays a key role in the effort to achieve sustainable deveropment
in society. TDK Environmental Vision 2035, newly launcheded in fiscal 2016, sets the goal of "to halve the CO2 emission

Osamu Hikita

basic-unit in a life-cycle perspective by 2035", based on operating businesses with low enough environmental load notGeneral Manager of Production

to disturb natural cycles. This stance stems from the belief that minimizing the environmental load in business activities,

Manager of Technology and IntellectualEngineering HQ, and Deputy Generaland revitalizing the natural environment, is the duty of companies that supply products designed to contribute to its

Property HQ, and General Manager ofcustomers and the society. Moreover, modeled on the United Nations Climate Change Conference (COP 21) Paris

Technology and Intellectual Property HQAgreement, which seeks to curb global warming by achieving a balance between greenhouse gas emissions andIntellectual Property Rights Center ofCorporate Officer

Creating a safe, healthy work environment that does the least harm to the global
environment is a foundational premise of our business activities. TDK Environmental Vision 2035 will guide our efforts with regard to the global environment
as we continue to deliver products and services that benefit customers andsociety. We must understand environmental impact from the perspectives ofvarious stakeholders, as we generate impact through the entire life cycle ofour products. Our formulation and implementation of a plan that incorporates
efforts to reduce environmental impact into all business processes will shape
our path forward. Toward that end, in fiscal 2018 we made an organizationalchange, integrating the departments in charge of production technology andenvironmental policy. This decision unifies environmental considerations andmanufacturing initiatives, and it advances the pursuit of "zero defect quality"
which will eliminate waste generated by defects and yields. Going forward, wewill continue to improve corporate value by reducing environmental impact as
our business contributes to society.

TDK Corporation

absorption sources, this is also considered the ideal corporate posture for all TDK activities.

Procurement

Disposal■CO2 emissions

basic-unit(FY2014=100)

FY2025FY2014FY2035

100
80

▲30％

▲50％

60

half

40

Development/ProductionUse

CO2 emissions
cut in half

200

Environmental load reduction, merit indicators anda lifecycle perspective

Logistics

Major achievements
Trends in CO2 Emissions from Production Activities (Global)*1

Trend in the Reduction of CO2 Emissions through Products*1

2,000

2,500

100

1,500
1,000

1,190

1,269

109.1

106.0

1,474

1,463

110.5
1,647

120
10080600FY2013

FY2014FY2015CO2 emissions (kt-CO2）

FY2016

118.7

2,000
100

1,500

1,580

123.0

2,041

1,675

150
12090

1,251

60

Tetsuya Kuwashima

20500

30

Environmental Planning Group000TDK Corporation

40500

138.9

FY2017CO2 emissions basicunit (FY2014=100)

1,000

886

FY2013

FY2014FY2015CO2 emissions (kt-CO2）

FY2016FY2017CO2 emissions basicunit (FY2014=100)

General Manager of Production Engineering andProduction Engineering HQ

In the effort to halve our CO2 emission intensity by 2035 as outlined in TDK
Environmental Vision 2035, TDK has adopted standards for CO2 conversion
that calculate full-lifecycle environmental impact that extends across a seriesof business activities. The main life cycle stages for emissions in electronic
components are generally: materials procurement, company operations, andproduct use. For this reason, we have augmented our efforts beyond improvements to the Group’s manufacturing facilities and products themselves andbegun working with procurement departments to ascertain the current status
at suppliers so that we can visualize the environmental load in the supplychain. I also consider it important to set goals matching actual conditions at ourbusiness locations rather than basing goals on CO2 conversion or numericaltargets. Collective motivation toward goals is much easier to maintain whenthose goals can be mapped to practical circumstances. I aim to improve theTDK infrastructure so that all employees feel motivated to contribute via theirautonomous actions to reducing our environmental load at all business sites.

*1 A third party review of the calculation method was performed. Please refer to the detailed information on TDK web.
https://www.global.tdk.com/corp/en/csr/csr_data/csr05900.htm

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The TDK Group's Important CSR Issues

Reduce Environmental
Load Throughout
Life Cycle Stages
In order to reduce environmental impact
on a global scale, efforts are needed that
not only reduce our own environmentalload but cover the entire value chain,
as well. Presented here is an outline of
TDK's lifecycle-based environmentalapproach and our main initiatives.

Asking Suppliers to Take
Further Environmental Action
TDK invites suppliers to briefing seminars forbusiness partners. Issues to be addressed infiscal 2018 will include reducing environmental
impact at the procurement stage.
TDK recognizes how important it is in management to assess environmental impact throughout the full lifecycle of products.
Through these seminars TDK plans to emphasize to suppliers the importance of issues bothsocietally and for business, and we will ask
suppliers to take further environmental action
and cooperate by making the necessary improvements.

Develop and Prosper in Harmony with the Global Environment

Procurement

Development andManufacturing

Logistics

Use

Disposal

TDK is promoting green procurement
and eliminating the use ofrestricted substances, while
also taking measures to reduce
suppliers' environmental
impact.

TDK is promoting environmentallyc o n s c i o u s d e s i g n t h ro u g hp ro d u c t a s s e s s m e n t s a n d
reducing environmental loads
during manufacturing by cutting
down on energy and resourceuse.

TDK is working with customers
to reduce environmental loadon top of enhancing in-houselogistical efficiencies.

TDK is producing eco-friendly
products to help customers reduce
their environmental load, while
promoting understanding of thevalue of doing so.

TDK is using recyclable materials
and designing products for easy
disassembly in consideration of thedisposal of products at the end of
their lifetime.

Reducing Energy in
Manufacturing and Fostering
the Next-generation
TDK has been working to support improvements
and other projects aimed at reducing environmental
impact, particularly targeting manufacturing sites in
the Group that have high CO2 emissions.
As a result, in fiscal 2017, the Group as a wholeachieved a 2.1% year-on-year reduction in emissions, equivalent to 31,388 t-CO2.
We have also been fostering the next-generation,
sending energy specialists to provide training at
each site, especially with regard to energy management.

Ag-stacked Film Reduces Environmental Impact
TDK’s Ag-stacked film (transparent conductive film) is used as a light-control film
for windows and communication antennas. It features high transmittance with low
resistance, and will have great potential for use in the fields of energy and organic
solar cells in the future. Because of its low power consumption, Ag-stacked film
can be used as a driving electrode for light-control film to reduce annual CO2 emissions by 3.2 tons. The potential for saving energy will only increase with the further
expansion of applications.

Creating a Framework for Gauging Product Contributions
Striving through formulation of industry-shared standards, steps are taken to promote social understanding of theCompany’s environmental contribution value.

Efforts at TDKBriefing seminar for suppliers (October 2017)31

On-site training by persons in charge of energy

TDK has quantified and announced its greenhouse gas (GHG) emission reduction contribution by product, and is also working to establish
industry standards for methods to quantify the reduction contribution of electronic components. In fiscal 2017, the Electronic Components LCA
Working Group of the Electronic Components Board of JEITA, in collaboration with Mizuho Information & Research Institute, Inc., collected andclassified examples of greenhouse gas emissions mitigation by electronic components, and outlined a basic approach to quantification. Basedon this guideline, JEITA estimated the contribution potential of Japanese electronics manufacturers in the global market presently and in thefuture (2030), which it announced at the 13th Meeting of The Institute of Life Cycle Assessment, Japan in March 2018. Additionally, informationon the contribution potential of electronic components in 2030 was provided to the Liaison Group of Japanese Electrical and Electronics
Industries for Global Warming Prevention and will be adopted as explanatory materials for the Electrical and Electronics Industries' "Action Planfor Commitment to a Low-Carbon Society" being promoted by the Japan Business Federation, a government advisory council.

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