Environmental
Report2022

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

Environmental Protection Activities . . . . . . . . . . . . . . . . . .

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

P.08

Message from the PresidentEfforts 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
In recent years, the impact of climate change has become significant all over the world, and the need for
global warming countermeasures is more strongly recognized than ever before.
We are aware that efforts to reduce environmental impact, such as carbon neutrality, are a corporatesocial responsibility and a key management issue.
Our mission is to stay committed to the advancement of technology that makes the most of theadvantages of compound semiconductors, thereby always offering communication devices that achieve
maximum data transmission with minimum power consumption. The amount of data handled bycommunication infrastructure and data centers has been continuing to grow dramatically. By offering
products for communication infrastructure and data centers, we help our customers improve the energy
efficiency of their business activities, and we are determined to step up our contribution in the future.
Another key issue is environmental impact reduction at the business bases of our Group.
As a milestone toward the achievement of carbon neutrality, our Group has set a fiscal 2030 target for
reducing the sum of Scope 1 and 2 greenhouse gas emissions, and it announced the target in May 2021.
A 50% reduction from fiscal 2020 is not an easy target to reach, but, to achieve this goal, we will devote
necessary management resources to production technology innovations and the introduction ofrenewable energy.
Our Group is also working to grasp the current situation of Scope 3 emissions, and it will plan measures
to reduce CO2 emissions throughout the supply chain.

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 tothe people 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.

YokohamaYamanashi

SPECSEDV
Environmental Report | 03

Efforts to Combat Causesof Global Warming
Greenhouse Gas Emissions (Scopes 1 + 2) Results and Target

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 sum of
Scope 1 and 2 emissions for fiscal 2030 at 37.8 kilotons-CO2/year, where Scope 1 emissions are direct emissions as a result ofbusiness 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

20002017
Scope 22018

20192020

2021

Year2017
Yamanashi

Scope 12018

2019

Yokohama2020
SPEC2021
SEDVYear

Other

Our Group’s greenhouse gas emissions in fiscal 2021 were 74.7 kilotons-CO2 (a 1.2% reduction from the previous year). Although
Scope 2 emissions increased by 7.1% from the previous year, Scope 1 emissions reduced by 8.7%, resulting in a reduction in thesum. As for emissions by base, the Yamanashi Plant and Yokohama Headquarters, both of which implement semiconductor wafer
processes, have the highest emissions, accounting for 75% and 15%, respectively, of the total emissions in fiscal 2021.

Fiscal 2021 Scope 1 Emissions BreakdownCombustion ofcity gas

19%
Other
process gases

Process gas
SF65%
76%

■Solar power generation system(Yamanashi)

SF6 accounts for 76% of our Group’s Scope 1 emissions (in fiscal 2021). This gas is indispensable for efficient processing ofsemiconductor wafers to achieve high quality, but SF6 has a high global warming potential. Although SF6 emissions increased infiscal 2020 due to a production increase, Our Group has been striving to reduce them.
In fiscal 2021, the Yamanashi Plant installed a rooftop solar power generation system. This system started operating in Septemberthat year, contributing to reducing greenhouse gas emissions by 152 tons-CO2 in fiscal 2021.

Environmental Report | 04Energy Consumption (Crude Oil Equivalent)

Energy Intensity Improvement RatekL/year%30,0005
425,0003

20,0002
15,0001

10,000

0

5,000
0-1-2
2017

2018

Yamanashi

2019

Yokohama

2020
SPEC2021
SEDVYear

Other20172018

Targets

2019

2020

2021

Year

Results

Our Group has been working on energy intensity improvement as one of its measures to reduce greenhouse gas emissions.
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 production volume and energy consumption for each producttype and process.
The fiscal 2021 target for energy intensity improvement was 4% from the base year, fiscal 2017, but the energy intensity worsenedby 0.1%. Although measures were taken for improvement, mainly the introduction of highly energy-efficient equipment, they were
not enough to make up for the energy consumption increase caused by the production increase.

Air conditioning equipment upgrade at the Yamanashi Plant
The Yamanashi Plant had a 20-year-old plant building with obsolete infrastructure equipment (airhandling units, a central monitoring system, and general-room air conditioners). Therefore, the Plant
introduced the latest equipment to conserve energy.
Obsolete relay-controlled equipment has been replaced by energy-saving inverter-controlled equipment.
Multiple outdoor air handling units, one for each clean room, have been replaced by a single unit thatcovers all the clean rooms. Moreover, the new outdoor air handling unit regulates the temperature andhumidity of the air drawn from the outside, reducing the load on the indoor air handling units. Thesechanges have led to a reduction in annual energy consumption by 110 kL (crude oil equivalent).

Clean
room

Outdoorair handling unit
HeaterHumidifier

Indoorair handling unit

Clean
room

Clean
room

Indoorair handling unit

Humidifier

After theupdate

Humidifier

HeaterIndoorair handling unit
Indoorair handling unit

HeaterOutdoorair handling unit
Outdoorair handling unit

Before theupdate

CleanroomEnvironmental Report | 05

Commitment to Resource
Conservation and Recycling
Waste

Waste Intensity Improvement Rate

ton/year%

800

30700

25600
20500

15400
300

10200
5100002017
Yamanashi

2018

2019

Yokohama

2020
SPEC2021
SEDV2017

Year2018
Targets

Other

2019

2020

2021

Year

Results

Our Group considers that effective use of resources and reduction of wastes are key issues to reduce the impact on the global
environment.
As an indicator of its waste reduction activities, our Group uses waste intensity, which is the amount of waste normalized by aproduction index. The fiscal 2021 target for the improvement of waste intensity was 4% or more compared to fiscal 2017, andthe actual improvement rate amounted to 24%.
A significant contributing factor to the improvement was reduction of sludge from wastewater treatment facilities.

Reduction of dehydrated sludge at the Yamanashi Plant
Acids and alkaline chemicals used in
the semiconductor manufacturing
process are detoxified in thewastewater treatment process at thePlant before being discharged into
the sewage system. This treatment
process generates dehydrated sludge
as industrial waste. The Yamanashi
Plant worked on sludge reduction toreduce the amount of industrial wastegenerated.

Effects of the Sludge Reducing Measures%100-52%806040Optimization of the amount ofchemicals used in the wastewater
treatment process has made it
possible to reduce the amount ofsludge generated while maintaining
appropriate
waterquality.
Furthermore, introduction of a sludge
drying process using an air blower
has reduced the water content of thesludge. These measures have resulted
in a 52% reduction of the amount ofsludge generated.

200Before
these measures

After chemicalamountoptimization

After introductionof thedrying process

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 2021.

Results of Exhaust and Wastewater Monitoring, and Other Measures (fiscal 2021)

YokohamaYamanashi

SPECWater quality

Kept within the reference value

Air quality

Kept within the reference value

Emergency drills

Conducted

Self-awareness raising education onenvironmental conservation

Delivered to all employees■ Yamanashi Plant
Emergency drill simulatingchemical leakage■ SEDV
Emergency drill simulatingchemical leakage

SEDV■ SPEC
Environmental inspection
reportEnvironmental Protection
Activities
Water Recycling at the Yamanashi Plant
The Yamanashi Plant uses well water in manufacturing processes and for utility facilities. From the perspective of environmental
protection, the Plant has promoted the recycling of water used in manufacturing processes and for power equipment so that it
can reduce the amount of water drawn from the well. Pure water used in manufacturing processes is constantly monitored for
quality after use, and, when it falls within the reference value, the water is recycled. Filtering of water used in the wafer processing
process for purification has enabled the water to be recycled in the same process. Furthermore, power equipment has beenenhanced so that recycled water can make up the entire amount of water used in chillers and scrubbers.

Recycled Water and Well Water Consumption
m3/d1500
1000
50002020

Recycled water consumption

2021YearWell water consumptionEnvironmental Report | 07

Offering of
Eco-friendly Products■Power amplifier device for base stations

Our Group contributes to improving the energy efficiency of data
centers and communication infrastructure by developing andoffering device products that enable large-capacity high-speed
communication with low power consumption based on theadvantages of compound semiconductors.
For example, our GaN power amplifier devices are highlyevaluatedforhighspeed

performance

andlowpower

consumption, and they are widely used at mobile phone basestations. These devices consume approximately 9% less powerthan conventional Si-based devices. The GaN power amplifier
devices we shipped in fiscal 2021 are estimated to havecontributed to reducing power consumption by 276 GWh/yearcompared to Si-based devices. This reduction amounts to 122,000
tons-CO2/year in greenhouse gas equivalent.

Environmental Report | 08