Environmental
Report2023

CONTENTS........................

P.03

Environmental Activity Policy . . . . . . . . . . . . . . . . . . . . . . .

P.03

Acquisition of Certifications forEnvironmental Management Systems . . . . . . . . . . . . . . . . .

P.03.........

P.04

Commitment to Resource Conservation and Recycling . . .

P.06

Measures to Reduce Environmental Pollution . . . . . . . . . .

P.07...................

P.08

Message from the President

Efforts to Combat Causes of Global Warming

Offering of Eco-Friendly Products■Coverage of this report
・Sumitomo Electric Device Innovations, Inc. (Yokohama HQ, Yamanashi Plant) (SEDI)
・Sumitomo Electric Photo-Electronics Components (Suzhou), Ltd. (SPEC)・Sumiden Device Innovations Vietnam Co., Ltd. (SEDV)
Note: In this Report, the terms “we,” “our” and “us” refer to SEDI, and the term “our Group”
refers to the SEDI Group (comprised of the three companies listed above).

Environmental report | 02

Message

Message from the President

We believe that it is our important corporate responsibility to work on reducing the
global environmental impact and widely disclose the results and challenges of our efforts.
We are pleased to publish the Environmental Report, as we did last year, to fulfill part ofthis responsibility.
Our mission is to provide device products that achieve high-speed, large-capacity datatransmission with minimal power consumption by taking full advantage of the features ofcompound semiconductors. To fulfill this mission, we have constantly striven to advancethe compound semiconductor technology we have developed over many years.
For example, devices made from gallium arsenide (GaAs) were once the main products
in our wireless communication device business. To meet the needs for high output, highefficiency, and low power consumption, however, we promptly began developing andproducing devices made from gallium nitride (GaN), which has better suitability, and havesteadily mass-produced these devices for about 20 years. Through accumulating such
experience, we have continually improved production efficiency, thereby ensuring a stable supply of products to our customers
and reducing the environmental impact of our manufacturing process. In recent years, investment in 5th generation mobile
communication systems has gained momentum, leading to an even greater need for GaN devices. We are committed tocontinuously contributing to the creation of energy-efficient, large-capacity communication infrastructure by offering device
products best suited to our customers’ needs.
As a milestone toward the achievement of carbon neutrality, we have set a “50% reduction from fiscal 2020” as our fiscal
2030 target for the sum of Scope 1 and 2 greenhouse gas emissions. We will contribute to the fight against climate change, acommon global issue, by investing the necessary management resources in such areas as innovations in production technology
and the utilization of renewable energy.

Sumitomo Electric Device Innovations, Inc.
President

Yuichi HASEGAWA

Environmental Activity Policy
Basic Philosophy
We think it is primarily important to establish a society that is sustainable and has less environmental impact. While
making continuous and steady efforts to promote our global environmental preservation activities, we contribute to thepeople of the world and society by providing products and services related to compound semiconductors.

Activity Guidelines
1 Step up our efforts to combat causes of global warming
2 Proceed with resource conservation and recycling
3 Promote environmental pollution prevention and environmental protection
4 Expand the offering of eco-friendly products to meet customer demands more effectively

Acquisition of Certifications for Environmental Management Systems
Not only our Yokohama Headquarters and Yamanashi Plant but also our two manufacturing subsidiaries, SPEC (China)
and SEDV (Vietnam), have established environmental management systems and have acquired ISO 14001 certifications.

SEDI (Yokohama)

SEDI (Yamanashi)

SPEC

SEDV
Environmental report | 03

Efforts to Combat Causesof Global Warming
Scope 1 and 2 greenhouse gas emissions results and targets
Fiscal 2020 results

Target for fiscal 2030

75.6 kilotons-CO2/year

37.8 kilotons-CO2/year(a 50% reduction from fiscal 2020)

As a measure to fight global warming, our Group strives to reduce greenhouse gas emissions. It has set the target on the sumof Scope 1 and 2 emissions for fiscal 2030 at 37,800 tons-CO2/year, where Scope 1 emissions are direct emissions as a result of
business activities of our Group and Scope 2 emissions are indirect emissions resulting from our Group’s electricity consumption.
This target is equivalent to a 50% reduction from the base year, fiscal 2020.

Trends in Greenhouse Gas Emissions by Scope

Trends in Greenhouse Gas Emissions by Basekilotons-CO2/year

kilotons-CO2/year

80

80

60

60

40

40

20

20
0

0
2017

2018

2019
Scope 2

2020

2021

2022 Year2017

Scope 1

2018

Yamanashi

2019

2020

Yokohama

SPEC

2021

2022 Year

SEDV

Other

Our Scope 1 and 2 emissions in fiscal 2022 were 71.1 kilotons-CO2, a 4.8% reduction from the previous year. Emissions for Scope
1 and 2 were reduced by 5% and 4%, respectively, from the previous year. A solar power generation system, which began
operation in fiscal 2021, at the Yamanashi Plant contributed to a reduction of 278 tons-CO2 in fiscal 2022. We also started
purchasing renewable energy in fiscal 2022, which resulted in a reduction of 153 tons-CO2. Going forward, we plan to promote thereduction of greenhouse gas emissions by improving energy use efficiency through increased productivity, as well as byincreasing the amount of renewable energy to be purchased.

Scope 3 greenhouse gas emissions results and target
Scope 3 emissions

kilotons-CO2/year

300
Category 7: Employee commuting
200

Category 6: Business travel
Category 5: Waste generated in operations

100

Category 3: Fuel- and energy-related activities
Category 1: Purchased goods and services

0
2020

2021

2022

Year

We have started calculating actual results for the five Scope 3 categories. For the calculation, we used the emission factors listed
in the database published by the Ministry of the Environment, Japan. As shown in the figure, emissions in Category 1 (purchased
goods and services) account for over 95% of the total emissions in the five categories, and thus we have set a reduction target
for this category. We will strive to improve the calculation accuracy of and reduce Category 1 emissions while maintaining close
communication with our business partners.

Scope 3, Category 1
emissionsFiscal 2020 results

Target for fiscal 2030

256.2 kilotons-CO2/year

217.8 kilotons-CO2/year(a 15% reduction from fiscal 2020)
Environmental report | 04

As part of our initiatives to reduce greenhouse gas emissions, our Group has been working on improvement of energy intensity.
Energy intensity is an indicator obtained by normalizing the sum of electricity and city gas consumption in crude oil equivalent
by a production index. The production index is calculated based on the production volume and energy consumption for eachproduct type and process.
The target for fiscal 2022 was a 5% improvement in energy intensity from the base year of fiscal 2017, but the actual
improvement rate was 4.4%. Although we achieved a certain level of success by introducing energy-efficient equipment andimproving productivity, we fell short of our target. This fiscal year, we have retrospectively reviewed how to calculate theproduction index. After the review, with the aim of evaluating energy use efficiency more appropriately than before, the results
have improved from those shown in last year's report.

Energy Consumption (Crude Oil Equivalent)

Energy Intensity Improvement Rate%kL/year6
30,0005

25,0004

20,0003
2

15,0001

10,000

0

5,000

-1

0

-2
2017

Yamanashi

2018

2019

Yokohama

2020

2021

2022 Year

SPEC

SEDV

Other

2017

2018

2019

2020

Targets

2021

2022 Year

Results

Establishment of a stable production system for clean dry air
and improvement of energy efficiency at the Yamanashi Plant
The Yamanashi Plant operates multiple compressors that produce clean dry air, which is essential for
driving and cooling production equipment. Long-term operating equipment was upgraded to thelatest model to ensure redundancy in clean dry air production and conserve energy.
One long-term operating equipment unit was removed and the latest model with high manufacturing
capacity and excellent energy efficiency was introduced. Consequently, the remaining long-term
operating equipment was put on standby as backup equipment in case of abnormalities, and a system
was created whereby clean dry air is secured during normal times using only the latest model. By
ensuring redundancy, the foundation for stable production has been strengthened and it has become
possible to effectively utilize equipment with excellent energy efficiency by controlling the number ofunits. This measure has resulted in an annual reduction of 122 kL (equivalent to 218 tons-CO2) in energy
consumption in crude oil equivalent.

Before theupdateLong-term
operatingcompressor

Long-term
operatingcompressor

Long-term
operatingcompressor

Constantly operating

After theupdateLong-term
operatingcompressor

Long-term
operatingcompressor

BackupLatestcompressor
model

UpdateLatestcompressor
model

Latestcompressor
model

Constantly operating

Environmental report | 05

Commitment to Resource
Conservation and Recycling
Our Group believes that effective use of resources and reduction of waste are also key issues to reduce the impact on the global
environment.
Our Group implements its waste reduction activities using waste intensity, which is calculated by normalizing the amount ofgenerated waste by a production index, as an indicator. The fiscal 2022 target was to improve waste intensity by at least 5%
compared to the fiscal 2017 level, and we achieved a 19% improvement.
Our efforts to reduce sludge from wastewater treatment facilities greatly contributed to this improvement.

Waste

Waste Intensity Improvement Rate

ton/year

％

800

40

600

30

400

20

200

10

0

0

2017
Yamanashi

2018

2019

2020

Yokohama

SPEC

2021
SEDV

2022 Year

2017

2018

Other

2019

2020

Targets

2021

2022 Year

Results

Reduction of dehydrated sludge at the Headquarters
Wastewater containing acid andalkalichemicals
used
in
the
semiconductor manufacturing process
is detoxified in an in-house wastewater
treatment process before being
discharged into sewers. In the treatment process,wastewater treatment chemicals suitable for thechemical substances contained in the wastewater are
selected. Wastewater treatment chemicals werereviewed according to changes in the type andamount of chemical substances resulting fromchanges in the product types manufactured andproduction scale in an effort to reduce the amount ofgenerated sludge.
In reviewing the chemicals, several
candidates were selected. Then, byconducting a model experiment, themostsuitablecandidatefor
detoxification and sludge reduction
was selected and applied to the actual treatment
process. Through this measure, the amount ofgenerated sludge was successfully reduced by 23%.

Improvement rate of sludge generation
％

100
80
60
40
20
0
Average before
implementationof the measure

Average after
implementationof the measure

Environmental report | 06

Measures to Reduce
Environmental Pollution
As measures to reduce environmental pollution, our Group monitors exhaust and wastewater from plants, conducts emergency
drills, and provides employees with education to raise their self-awareness of the importance of environmental conservation. The
table below lists the results of these measures taken in fiscal 2022.

Results of exhaust and wastewater monitoring, and other measures (fiscal 2022)
Yokohama

Yamanashi

SPEC

Water quality

Kept within the reference value

Air quality

Kept within the reference value

Emergency drills

Conducted

Self-awareness raising education on
environmental conservation

Delivered to all employees

Emergency drills
at the Headquarters

Emergency drills
at SEDVSEDVSPEC environmental
inspection report

VOICE
The Facility and Equipment Division maintains and manages power
equipment and production equipment 24 hours a day to ensure thatplant operations do not stop; it also carries out upgrading of aging
equipment and other measures. Pure water and air used insemiconductor plants are produced using vast amounts of energy,
including electricity and city gas. Therefore, to prevent wasteful energy
consumption in pursuit of achieving carbon neutrality, we carefully adjust
operating conditions according to daily changes to ensure energy-saving
operations. For example, in the operation of air conditioning systems, we
control the heat source by changing the combination of operating
equipment according to changes in the outside temperature. Whenupgrading power equipment, we do not simply replace the equipment,
but rather upgrade it by also reviewing the entire system, including
related equipment, to achieve the best energy efficiency.
Facility and Equipment Division
On the other hand, in addition to energy supply, we also carry out
General Manager Atsushi GOTO
environmentally friendly maintenance and management of wastewaterand exhaust air. For example, in wastewater management, we have established voluntary water quality control values that arestricter than the legal standards to enable us to detect signs of problems at an early stage. We also conduct analysis and othermeasures on a daily basis to confirm that the quality of wastewater is at normal levels and adjust the amount of chemicals
added according to the quality of the wastewater. Furthermore, we have been conducting a number of drills simulating various
scenarios in order to prevent environmental accidents. In drills simulating water leakage problems in the wastewater treatment
process, participants learn how to operate emergency shutoff valves or prepare sandbags to prevent untreated wastewaterfrom flowing into rivers or sewers. In addition, we provide training for construction contractors based on specific examples
that can lead to environmental accidents in an effort to prevent environmental accidents during on-site construction work. We
will continue to work on achieving stable plant operations and environmental conservation.

Environmental report | 07

Offering of
Eco-friendly Products

Power amplifier device for base stations
Our Group contributes to the improvement of the energy efficiencyof data centers and communication infrastructure by developing andprovidingdeviceproducts

that

can

achievehigh-speed,large-capacity communications with low power consumption,leveraging the features of compound semiconductors.
For example, our GaN power amplifier devices are highly
appreciated for their high speed and low power consumption andare widely used in base stations of the mobile phone infrastructure.
The devices we shipped in fiscal 2022 are estimated to reduce
power consumption by 739 GWh/year compared to conventional
silicon (Si)-based devices, which translates to 321 kilotons-CO2/yearof greenhouse gas equivalent. This includes a reduction of 273
GWh/year or 118 kilotons-CO2/year (compared to fiscal 2020)
achieved by the launch of new products with higher efficiency.
We will continue to take on the challenge of developing productswith even higher efficiency, aiming to contribute to the creation ofenergy-efficient communication infrastructure.

Environmental report | 08