Inherited
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ULVAC’s Strategy

Corporate
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Financial Data/
Corporate Information

Contribution to a Sustainable Global Environment
The Sixth Assessment Report of the Intergovernmental Panel on Climate Change (IPCC) states that in line with
global warming, weather and climate extreme events, such as heatwaves, heavy precipitation, droughts, andtropical cyclones, are increasing in every region across the globe and are likely to continue increasing. The global
average temperature has already risen more than 1°C above pre-industrial levels and, with the aim of keeping
the temperature increase below 2°C, further mitigation efforts by countries are required. At the 27th Conferenceof the Parties to the United Nations Framework Convention on Climate Change (COP27), the focus was onstrengthening measures to limit the global temperature increase to 1.5°C. Concrete plans are being formulated
and climate change initiatives are intensifying worldwide. Furthermore, in consideration of the sustainability oflife on Earth, the conservation of biodiversity is also positioned as an urgent international issue.
We have signed the United Nations Global Compact and our initiatives are in accordance with the principles
for environmental action advocated by the UN. Moreover, we endorse the recommendations of the Task Force on
Climate-related Financial Disclosures (TCFD) and disclose information on the impact of climate change on ourbusiness. Furthermore, we have been responding to a survey conducted by CDP, an international NGO. We are
striving to enhance our commitment and information disclosure.

Environmental Activities in FY 2022
In growth fields such as semiconductors and electronic devices, we are actively investing in regions across the world,with a particular focus on China and South Korea, which are positioned as strategically important regions, and we arepromoting capital investment. Regarding the material balance, electricity consumption increased in these strategic
regions. To save energy, having set a target of a 1% reduction in greenhouse gas (GHG) emissions compared with theresult for the previous year (ULVAC standard), we promoted installation of renewable energy facilities such as solar
power generation facilities and vigorous procurement of renewable energy. As a result, GHG emissions decreasedby 10% from the base year (2020). As for waste, both the total amount of waste recycled and the amount of landfill
increased owing to increased production overseas, and the final landfill disposal rate also increased by 0.2%.
Total water consumption increased following the start of full-scale operation of ULVAC Coating Technology (HEFEI)
Co., Ltd., which is engaged in the deposition and coating business that uses large amounts of water. Meanwhile, ULVAC
has set a new target for efficient use of water resources. Going forward, we will promote water management with theaim of reducing water-related impact in all regions.
The amount of solar power generated increased as a result of the installation of 370-kW-capacity solar power
generation equipment at ULVAC KIKO, Inc. New installations are also planned in China and Taiwan. We will continue topromote environmental management activities throughout the Group.

Material balance (Source: Aggregate data for FY 2022)

Aiming to be a company that continues to contribute to the future of people and the planet, ULVAC is
responding to the above-mentioned changing external environment by conducting various activities in accordancewith the Environmental Philosophy, Environmental Policy, and the Environmental Targets described below.
Environmental Philosophy
The ULVAC Group understands that the conservation of the global environment is one of themost important issues facing humanity. While effectively utilizing resources in all aspects of ouroperations, we take into consideration biodiversity so as to contribute to bringing about a better
living environment and a more prosperous society.
Environmental Policy
Reducing greenhouse gas emissions
We reduce greenhouse gas emissions, a main cause of climate change, through all of our activities.
We are committed to developing products that conserve energy and reduce our environmental footprint.
Preventing environmental contamination
In conducting business, we comply with environmental laws and regulations.
We manage hazardous chemical substances appropriately in our manufacturing processes to prevent
environmental contamination and health hazards.

LPG:
LNG: 
City gas: 

Fuelconsumption

6 kL
Heavy oil:
Kerosene oil: 14 kL
Diesel oil:
140 kL
1,573 thousand m3

Packagingmaterials

1,523 t0Total waste
emissions

Total amount ofwaste recycled:
4,817 tAmount of landfill: 101 t

Final landfill
disposal rate

Group companies overseas(Thousand m3)
2,000

35,202

34,27935,10563,76959,50220182019

55,8292020

Reducegreenhousegas emissions

93,781t-CO2

Water consumption reduction target

by

36,49255,5602021(t)
10,00056,269 educe unit water consumption* to the levelRin 2020 or less

t-CO2

Net zero

7,500

greenhousegas emissions

5,000*Water withdrawal/Net sales (consolidated)

2020

2030

2050

(CY)

2,500

51,2252022 (FY)0

Amount of landfill (t)Final landfill disposal rate (%)

3.6
286
163.9
1,877
2018

Group companies overseas

469

451

442

549

899

964

993

996

1,024

2018

2019

2020

2021

2022

1,000

409

500
0

(FY)

Amount of solar power generated

Total amount of waste recycled (t)Amount of valuable materials recycled (t)6,584Group companies in Japan

1,500

38,181

Waste emissions

40%

1.6%

Water consumption

60,00030,000(Emissions due to consumption ofelectricity, gas, and fuels)

6,223 tWater
consumption

Group companies in Japan

84,906 t
CO2 emissions* For the emission factors, the Emissions Factors 2021 edition published by
the International Energy Agency (IEA) is used.

Greenhouse gas emission reduction targets

ULVAC VALUE REPORT 2023

243 t
658 t
1,402 thousand m3

Gas
consumption

90,000

Environmental Targets

49

167,040 thousand kWh(t-CO2)120,000

Environmental education and information disclosure
Through environmental education, we raise the awareness of each individual and appropriately disclose
environmental information.

Eliminate environmental accidents

OUTPUT

Energy-derived CO2 emissions

Environmental targets and continuous improvement
We establish environmental targets and strive to improve our environmental performance by reviewing
these targets.
In addition, we continuously improve our environmental management system through routine review.

 educe greenhouse gas emissions in 2030 byR
40% as compared with 2020 (Scope 1 and 2)
Achieve net zero greenhouse gas emissions
by 2050

INPUT
Electricity
consumption

2.6
80.1
1.4

4,987
1,173
2019

4,936

1,136

2020

93.9
4,426

101.0
1.4
1,189

2021

1.6
4,817

1,169

2022 (FY)

(%)
4.0

(kWh)
2,000,000

3.0

1,500,000

2.0

1,000,000

1.0

500,000

0.0

01,323,580 1,301,727 1,339,244

1,564,459

583,620

2018

2019

2020

2021

2022

(FY)

ULVAC VALUE REPORT 2023

50

Inherited
ULVAC-StyleULVAC’s Strategy

Message to Our
Readers

About ULVACULVAC’s Vision

ULVAC’s Strategy

Corporate
Governance

Financial Data/
Corporate Information

Contribution to a Sustainable Global Environment

Response to the Recommendations of the Task Force on Climate-related
Financial Disclosures (TCFD) and Climate Change Initiatives
ULVAC positions climate change initiatives as one of its key management issues. The ULVAC Group has set
medium- to long-term greenhouse gas emission targets, namely, a 40% reduction in 2030 (compared with 2020)and effectively zero in 2050. We will take action to mitigate climate change by endeavoring to curb greenhousegas emissions throughout our activities, such as by doing our utmost to conserve energy in Japan and overseas,
introducing renewable energy with low greenhouse gas emissions, and developing environmentally friendly products.
We endorse the recommendations of the Task Forceon Climate-related Financial Disclosures (TCFD) andstrive to disclose relevant information. Furthermore,ULVAC has been responding to a survey conducted by
CDP*, an international NGO.
*CDP: A non-governmental organization (NGO) managed by a British charity. CDP sends questionnaires on climate change and other issues to companies and local
governments and assesses and discloses the impact of their activities on the environment. When deciding which companies to invest in, CDP scores are
considered important criteria.

Governance
Under the supervision of the Board of Directors, the Executive Officers in charge of sustainability and theenvironment monitor progress toward targets.
Meetings of the Sustainability Promotion Committee attended by the internal directors, executive officers, anddepartment heads are held twice each year to acknowledge social trends and the Company’s current condition,and discuss measures to address any issues. If significant issues related to management arise, the Management
Council and the Board of Directors deliberate and make management decisions as needed.
Meetings of the Global Environmental Management Committee chaired by the Executive Officer in charge ofthe environment and attended by environmental managers of Group companies are held twice each year. The
committee monitors the setting of targets of each Group company and the progress, checks the status of theinitiatives for achievement of the targets, discusses measures corresponding to the issues, and reports to theManagement Council. The statuses of these initiatives are monitored by the Sustainability Promotion Committee
and reported to the Board of Directors by the Executive Officer in charge of sustainability.

Strategy
Under the scenarios announced by the Intergovernmental Panel on Climate Change (IPCC), the International Energy
Agency (IEA), and others, that “the global average temperature will rise by 4°C or more” and “the global averagetemperature rise will be kept below 2°C (partly up to 1.5°C) as agreed by the Paris Agreement,” we identified businessrisks and opportunities in the medium to long term that will be brought about by climate change. Of these, we
Major risks
Category
MarketElements
Increase in business costs due to changes incustomer behavior

Measures
Introduction of renewable energy and ensuring the implementation ofenergy-saving measures in business activities

Policies and legal

Carbon pricing

Engineering

Replacement of existing products and services
with those with lower emissions

Research and development of products and services such as
manufacturing equipment that contributes to technological innovation invarious fields, and promotion of low-power consumption of products

Acute/chronic

Business continuity risk due to extreme
weather events such as typhoons and torrential
rain

Formulation of business continuity plan for natural disasters andimplementation of countermeasures

Major opportunities
Category
Products andservices

51

Elements
Heightened expectations for equipment
and technology contributing to low-power
consumption devices, power devices andlithium-ion batteries, and increased needs for
low-power-consumption products

ULVAC VALUE REPORT 2023

MeasuresResearch and development of products and services such as
manufacturing equipment that contributes to technological innovation invarious fields, and promotion of low power consumption of products

analyzed risks and opportunities with respect to “carbon pricing,” “business continuity risk due to the occurrenceof disasters caused by typhoons, torrential rain, and other extreme weather events,” and “expansion of market
opportunities for power devices” and evaluated quantitative impacts on our business. Going forward, we will expand
the scope of quantification of impacts on business and further consider specific measures.

Risk Management
The Management Planning Department is designated as the department in charge of all risks that may cause
serious damage to management. The Management Planning Department instructs the relevant internal divisions
and departments and Group companies to identify such risks and formulate countermeasures. In this way, risks are
identified, Group-wide responses are promoted, and the results are reported to the Risk Management Committee.
The Risk Management Committee conducts detailed identification or identification of these risks and considers
business reporting and remedial measures, strives for early detection through monitoring, conducts reporting,and implements remedial measures. Moreover, the Sustainable Management Department is designated as thedepartment in charge of medium- to long-term sustainability risks. The Sustainable Management Department
instructs the relevant internal divisions and departments and Group companies to identify sustainability-relatedrisks and reports the results to the Sustainability Promotion Committee. The Sustainability Promotion Committee
manages the progress of initiatives for medium- and long-term risks. Finally, the Board of Directors receives reports
from these committees and oversees the status of risk management. Through these structures, the Group aims toachieve management stability and sustainable growth.
We have major development and manufacturing sites in Japan, which account for 60% of the Group’s total GHG
emissions in Scope 1 and 2. In addition, sites in South Korea account for 17% of the Group’s total GHG emissionsin Scope 1 and 2, making that country second only to Japan, and they are key sites for the Group’s semiconductorbusiness to which great importance is attached from the viewpoint of management strategy. Therefore, future
introduction of carbon taxes and tightening of emissions trading regulations in Japan and South Korea would havesignificant impacts on costs. Thus, based on the ULVAC Group’s GHG emissions in Japan and South Korea, weestimated and confirmed the amounts of impacts in 2030 under the Announced Pledges Scenario (APS), which
is one of the scenarios presented in the IEA’s World Energy Outlook 2021 and is a scenario that reflects volunteer
countries’ ambitious pledges. Reductions of GHG emissions at these sites are important for achieving the Group’s
goal of carbon neutrality. Therefore, a committee headed by the Executive Officer in charge of the environment andrelated divisions will monitor the risk of energy cost increases and continue to assess this and other risks, for which
purpose it will monitor trends. In addition, we will promote initiatives for further energy saving and introduction ofrenewable energy.
For Scope 3, environmental impacts in the value chain are significant upstream in procurement from suppliersand downstream in the use of products by customers. Therefore, mindful of the importance of providing
environmentally friendly products, we are promoting initiatives to reflect environmental considerations from thedevelopment stage onward.
In formulating a business continuity plan, we assumed the occurrence of disasters caused by typhoons, torrential
rain, and other extreme weather events, and are implementing measures to ensure continuing operation of ourbusiness.

Metrics and Targets
In order to actively address climate issues as a responsible member of society, the ULVAC Group has set mediumto long-term targets for GHG emissions from its business activities, namely, a 40% reduction in 2030 (comparedwith 2020) and effectively zero in 2050. We will take action to mitigate climate change by endeavoring to curb GHG
emissions throughout our activities, such as by doing our utmost to conserve energy in Japan and overseas, installing
solar power generation facilities, introducing
renewable energy, and developing
Reduce greenhouse gas emissions in 2030 by 40% as
environmentally friendly products.

compared with 2020

Achieve net zero greenhouse gas emissions by 2050
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Contribution to a Sustainable Global Environment

Efficient Use of Water
There are concerns worldwide about water risks, such as heavy rainfall, flooding, and water shortages, due to ongoingclimate change.
We assess and confirm the impact of water risks on our business.
We identify sites exposed to water risks by using the WRI Aqueduct, a water risk assessment tool, focusing on thesites with high environmental impact as defined by the Company. We define sites with extremely high or high baselinewater stress as water-stressed areas. The sites exposed to water risks are located in parts of China, South Korea, andThailand, and account for 3% of the ULVAC Group on a consolidated basis. None of them are classified as sites with highenvironmental impact as defined by the Company.
In FY 2023, we have set a new water consumption reduction target for effective use of water resources. In the
future, we will set targets for individual companies and promote specific initiatives in the cleaning and the deposition andcoating businesses, which also have high environmental impacts.

“ULVAC Green Products” Certification Program for Environmentally
Friendly Products
In recent years, climate change and other global issues have become starkly evident and are posing a risk to our lives,
let alone business. For companies, it is becoming increasingly important to take environmental considerations into
account in order to realize a sustainable society. We have established the ULVAC Green Products certification program
to promote environmentally friendly products that make efficient use of resources and are environmentally conscious
from every perspective, including the impact of each product life cycle. This program certifies products that satisfy one
or more of the evaluation criteria concerning environmentally friendly design that we have independently establishedand that satisfy the applicable standards. We will continue to release ULVAC Green Products so that our products cancontribute to bringing about a better living environment and a more prosperous society.
Evaluation Items
Environmental friendliness elements

Items

Management of Chemical Substances

Reduced parts countPrior to the use of chemical substances in the manufacturing
process, we conduct risk assessment, in which the amount of thesubstance to be used and the protective equipment necessary are
confirmed, in an effort to ensure worker safety and minimize theenvironmental impact. Moreover, in order to ensure compliancewith the environmental regulations of various countries concerning
products, a cross-organizational team whose members are drawn
from quality assurance, procurement, and environmental divisions
is playing a central role in establishing a structure for managementof chemical substances contained in products, thus ensuring
Briefing on chemical substances contained in products by an external
provision of environmentally friendly products. Furthermore,lecturer is held for each division
we collect information in order to appropriately respond toenvironmental laws and regulations, which undergo frequent
revisions, and conduct in-house education on chemical substances contained in products for which external lecturers
are invited, thus supporting manufacturing in compliance with environmental regulations. This education is not limited to
ULVAC’s business divisions but also covers our business partners. We are promoting establishment of a management
structure covering the entire supply chain.

Selection of environmentally friendly materials

Space-saving, compact, lightweight, and simplified

REDUCE
Resource
conservation andrecycling

Easy-to-assemble, easy-to-disassemble structure
Reduced maintenance frequency
Reduced packaging materials
Reduced consumption of water resources, such as industrial water
Longer service life

REUSE
RECYCLE
Reduction of electricity
consumption
Climate action

Reduced consumption ofenergy other than electricity

Other

Active use of reused and recycled items
Design for recycling
No use of hazardous chemicals
Reduced electricity consumption
Reduced consumption of cooling water, nitrogen, etc.
Use of alternatives to greenhouse gases used in the process andreduced use of greenhouse gases
Reduced noise

Participation in the Reforestation Partner System
Based on a strategy for sustainable business, ULVAC is vigorously promoting environmental initiatives. With anemphasis on harmony with the local community, we focus on protecting the ecosystem in the vicinity of our head
office and factory located in Kanagawa Prefecture.
Specifically, for the past two years we have been actively participating in the “Reforestation Partner” systempromoted by Kanagawa Prefecture to contribute to the protection of local water source forests. Through thispartnership, we conduct forest conservation activities three times
a year. In particular, in July, we conducted activities in the Yadoriki
water source forest located in Ashigarakami-gun, Kanagawa
Prefecture. Participants cleared undergrowth and learned about
the environment through observation of aquatic life in a rich naturalenvironment in the depths of the forest.
ULVAC’s goal for 2050 is to be a company that continues tocontribute to creation of a sustainable, environmentally friendly
society. To realize this goal, we will promote management thattakes the global environment into consideration, and furthermore,
we will protect and nurture the ecosystems of local communities so
as to fulfill our responsibility to pass on flourishing forests to future
generations.
ULVAC’s signboard has been installed nearby

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ULVAC VALUE REPORT 2023

Example of Green ProductsuGmni-200

Combined deposition and etch modules’ system of cluster typefor advanced electronics
Relevant
items

Space-saving, compact, lightweight, and simplified
Easy-to-assemble, easy-to-disassemble structureuGmni-200 is a film deposition system combining several different
process modules for sputtering, etching, ashing, and CVD on the sametransfer core based on the concept of the use of common parts. As a result of improvement of assembly navigationand layout optimization, the time required for equipment assembly was reduced by over 10% compared with the caseof conventional equipment. In future development, we aim to reduce both the footprint and the number of parts. In
addition to environmental friendliness, we will promote value engineering (VE) to develop of high-value-added productsthat facilitate introduction by customers.

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