KIOXIA Iwate Corporation
Environmental Report2022
2022

KIOXIA Iwate

Table of Contents
Company Profile
Message from Our President
Environmental Policy
Management Structure for Environmental Conservation
Environmental Conservation Team Structure
ISO 14001
Initiatives to Reduce Environmental Impact
Environmental Target
Reduce energy-derived CO2
Reducing Greenhouse Gases (PFCs)
Reducing Waste
Reduce chemical substance emissions
Substance Management in Product Manufacturing
Environmental Assessment of Chemical Substances (Pre-Assessment)
Management of Chemical Substances Included in Products
Green Procurement
Countermeasures against Environmental Risks
Compliance with Environmental Laws and Regulations
Environmental Measurements
Environmental Facilities
Accident and Emergency Response Training
Environmental Communication
Environmental Communication Efforts with Local Community
Efforts to Increase Understanding and Widespread Adoption In-House
Various Data
Environmental measurement data
PRTR (Ascertain the Emission and Transfer Amounts of Chemical Substances)
Material Balance

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Company Profile
Company name:KIOXIA Iwate Corporation

Current address:

6-6, Kitakogyodanchi, Kitakami City, Iwate

Established on:

December 25, 2017

President:

Koichiro Shibayama

Business contents:

The manufacturing of flash memories

Reporting Period
This report focuses on efforts undertaken during fiscal 2021 (April 1, 2021 to March 31,2022). This report also includes some other efforts outside that time frame.

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Message from Our President
KIOXIA Iwate Corporation
President and Chief Executive Officer
Chief of environmental conservation

Koichiro Shibayama
KIOXIA Iwate was established in 2017 as a production base for flash memories.
Flash memories are essential to our everyday lives as parts that ‘store’ information such as
in smartphones, automobiles, and data centers. Due to factors such as the shift to IoT
compatibility for home appliances, the scaling of the metaverse, and the dawning of the ‘withCorona’ era, the market of flash memories is expected to continue to grow.
To support the lifestyles of our customers, we will continue to give our all every day efforts
to ensure stable manufacturing and grow our business.
Our business is only possible thanks to the vast water and land resources of Kitakami City.
We are actively engaged in environmental conservation efforts to protect the local area
blessed with an abundance of greenery and pass it on to the next generation. We must also
meet the growing social and customer expectations surrounding the global environment. For
example, we are engaged in efforts to survey and measure our environmental impact on theregion, as well as save energy by reducing the amount of greenhouse gases we produce.
This report provides a summary of these efforts. I hope you enjoy reading this report.
Lastly, I would like to take this opportunity to say thank you for your continued support andunderstanding.

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Environmental Policy
The KIOXIA Group established the “KIOXIA Group Environmental Policy” to demonstrate
its fundamental philosophy regarding the environment, and shares the contents of this policy
throughout the entire group.

- KIOXIA Group’s Environmental Policy Mission
KIOXIA Group’s Environmental Policy ensures we conduct business in a way that enhancesand preserves the environment. Through purposeful, sustainable actions, we’re prioritizing
being responsible stewards of the environment to do our part in maintaining our planet’s
health for years to come.
PolicyIn addition to complying with environmental laws and regulations in the regions in which it
operates, KIOXIA Group considers environmental stewardship to be one of our primary
responsibilities. We take actions to limit our environmental impact throughout our supply
chain of memory, applied, and related software products that support information
infrastructure. From taking systematic and globally accredited steps to reduce our pollution
and greenhouse gas emissions from our manufacturing processes, to regularly auditing andreviewing our activities to constantly improve our environmental management system,KIOXIA Group takes deliberate action to ensure efficient and effective operations.
Implementation
１.We strive to make sustainable memory, applied, and related software products by using
high-capacity, miniaturized and power-saving technologies. We also perform ongoingenvironmental assessments of our products and manufacturing processes, as well as atargeted effort to reduce our overall raw material usage.
２.We are doing our part to help prevent global warming through initiatives that directlyreduce greenhouse gas emissions. This includes the development of energy-saving
technologies – especially within power systems and manufacturing machinery –productivity improvements, and introducing clean energies.
３ .We purposefully take actions aligned with the “three Rs” – reduce, reuse, recycle.
Specifically, we focus on developing resource-saving technologies and implementing
productivity efficiencies, as well as limiting the use of water resources around our plantsites and returning water used in production to the environment after effective purification
treatment.
４.We limit environmental risk in our operations by being conscious of the chemicals we use
in production and developing technologies that reduce our use of certain chemicals.
Through responsible handling and management of production-related chemicals, we also
strive to prevent associated pollution.
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５.We strive to reduce the impact of our business activities on biodiversity, and pursue
activities that aim to preserve biodiversity in order to help conserve the environment.
６.We regularly disclose information and updates on our sustainability efforts – including newenergy-saving technologies – through environmental advertising, exhibitions, media, andcollaboration with various stakeholders including the local communities in which we
operate.
７.We underscore the importance of environmental stewardship with our employees, who
promise to keep sustainability top-of-mind in all business activities.
This Environmental Policy is core to KIOXIA Group’s operations – it is available internallyto global employees of KIOXIA Group and externally to customers, media, and the generalpublic. We are committed to pursuing corporate activities that are in line with thispolicy.February 1st, 2020
Nobuo Hayasaka
President and Chief Executive Officer
KIOXIA Holdings CorporationKIOXIA Iwate Corporation Environmental Report 2022
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Management Structure for Environmental Conservation
Environmental Conservation Team Structure
To continuously and effectively promote environmental conservation efforts, we haveestablished an environmental conservation team structure led by the president, and haveoutlined responsibilities and authorities. As a forum to deliberate environmental conservation
matters, we have set up the Global Environment Meeting to deliberate the achievement rateof our environmental targets, compliance with environmental laws and regulations, and our
impact on the area around the plant.
Matters deliberated at the Global Environment Meeting are shared with all employees,
including partner companies, to facilitate clear environmental conservation efforts.

Environmental Conservation Team Structure
ISO 14001
KIOXIA is run in accordance with our environmental management system (EMS). Afterclarifying environmental risks, we set targets and strive to achieve them.
For environmental risks, we assess the impact on the environment brought about by ourbusiness activities involving products and services. Based on these environmental risks, we
set targets such as reducing our environmental Impact and preventing pollution, and actively
roll out environmental improvements.
Our EMS has acquired ISO 14001 certification, which is the international standard, and issubject to regular audits by an external organization.

Environmental Management System Operation

ISO 14001-CertificationKIOXIA Iwate Corporation Environmental Report 2022
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Initiatives to Reduce Environmental Impact
Environmental Target
Every year we set high target values for environmental conservation. In fiscal 2021, while
we upwardly revised the target values of some of our targets during the year and set difficult
targets, ultimately, we did not achieve these targets. In other items, we were able to achieve
all targets. We will analyze the results and make improvements to tie them into our efforts
the following fiscal year.

Results of Environmental Targets in FY2021

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Reduce energy-derived CO2
For each department of production engineering, manufacturing, and facility management at
KIOXIA to engage in intra-organization efforts to reduce energy-derived CO2, we set up an
Energy Conservation Committee to facilitate reducing energy used at our manufacturing
facilities, power facilities, and shared facilities.
We set targets to reduce our annual energy-derived CO2 emissions and plan and roll out
measures to reduce CO2. We started full-scale efforts in fiscal 2021, resulting in a reductionof energy-derived CO2 emissions of 10,361 t-CO2.

Energy Conservation Committee Structure

Classification

Production facilities

Main Measures

Throughput improvements of manufacturing equipment and adopting
equipment without heaters or chillers, etc.

Power facilities

Optimizing the operation of power facilities, etc.

Shared facilities

Energy saving in offices and toilets, etc.

Measures to Reduce Energy-Derived CO2

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Reducing Greenhouse Gases (PFCs)
In manufacturing semiconductors, we handle a wide variety of greenhouse gases (PFCs).
PFCs gas is used in large volumes for wafer etching, wiring, and forming thin membranes,
and thus it is an indispensable material for creating semiconductors. However, the effect of
PFCs on global warming is massive, it will cause environmental destruction if emitted in thisstate. Therefore, at our plant, we actively reduce the emissions of PFCs as an environmental
measure.
As a measure to reduce emissions, we install all equipment with systems to remove PFCs
and optimize the inside of equipment prior to wafer processing. We optimize the frequency
at which the inside of the chamber is cleaned and introduce high-efﬁciency facilities.
Installing systems to remove PFCs and processing global warming substances has
contributed significantly to reducing PFCs emissions. We will reduce emissions by installingabatement systems for all equipment to be introduced in the future.

Effect of PFCs Abatement SystemKIOXIA Iwate Corporation Environmental Report 2022
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Reducing Waste
In the manufacturing of semiconductors, much waste is generated, such as sludge fromprocessing waste liquids and waste water that is generated from chemicals used in the
manufacturing process. To reduce the amount of waste generated, since starting production
in 2019, we have engaged in efforts to reduce waste generation by reducing the amount ofchemicals and gas we use, as well as improving our water processing process. By promoting
the separation of waste, we promote further recycling and the conversion of waste into
valuable resources.

Graph of Waste Amount and Recycling Rate

■ Case study of reducing waste - Reusing waste liquid In the process to form circuits on wafers (lithography process) during the manufacturing
process, a large amount of waste solvent solution is produced when dissolving thephotopolymer resin. We do not dispose of this waste liquid as waste. Instead, by outsourcing
the distillation and refining operations and reusing the waste liquid in manufacturing
processes, we reduce the amount of waste.

Reusing Waste Liquid

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■ Recycling case study
As for sludge and waste liquid processed as industrial waste, we recycle them by turning
the sludge into raw materials for cement and converting the waste liquid into a reusable
resource.

Recycling Case Study
Reduce chemical substance emissions
We assess the existence of laws and regulations and risks in the event of leakage, identify
chemical substances that should be the focus of measures to reduce their environmental
Impact, and strive to reduce emissions and find replacements for such chemical substances.
As an example of reducing emissions, we install removal systems to reduce volatile organic
compound (VOC) emissions, and boast an installment rate of 100% for targeted equipment.
By performing combustion through a removal system, we have reduced the amount of VOCemissions by 84% and reduced the unique odor of organic compounds.

Removal Impact of VOC Combustion Removal System

VOC Combustion Removal
SystemKIOXIA Iwate Corporation Environmental Report 202211

Substance Management in Product Manufacturing
Environmental Assessment of Chemical Substances (Pre-Assessment)
At the KIOXIA Group, we manage chemical substances under the fundamental thinking of“do our utmost not to use chemical substances,” “strive to find replacement chemical
substances that have minimal Impact on the environment,” and “if using chemical substances,manage their use appropriately.”
Before using chemical substances, we conduct an environmental assessment to checkthings like the presence of substances restricted by the KIOXIA Group and the processing
methods. Through these efforts, we appropriately manage chemical substances and strive
to reduce our Impact on the environment. After using chemical substances, we use anaggregation system to ascertain and manage the amount of chemical substances we use
every month.

Flowchart of Environmental Assessment of Chemical Substances
Management of Chemical Substances Included in Products
Regulations on product-related chemical substances are getting stricter year by year. The
main regulations are the EU’s RoHS directive, the packaging and packaging waste directive,
and the REACH regulation. As well as outside of the EU, laws and regulations similar to theEU’s RoHS directive are in effect all over the world. To comply with these regulations, weselect“Procurement-Prohibited Substances” and “Procurement-Controlled Substances” tostipulate which substances must not be included in products and what substances included
in products should be managed. At the KIOXIA Group, we strive, where possible, not to use
harmful substances in our products and manufacturing processes and to select materials
that pose a smaller Impact on the environment.

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Green Procurement
The KIOXIA Group aims to realize a sustainable society based on the KIOXIA Group
Environmental Policy. To achieve this, we established the KIOXIA Group’s Green
Procurement Guidelines that reflect things like the laws and regulations of each country andthe demands of our customers. This guideline summarizes our philosophy as a company
with regard to reducing our environmental Impact in resource procurement, as well as ourdemands with regard to managing harmful substances. We share this guideline with our
suppliers. Green procurement refers to actively promoting environmental conservation at our
suppliers by procuring products, parts, materials, etc. with a smaller Impact on theenvironment. To undertake business endeavors in consideration of reducing ourenvironmental Impact and risks caused by harmful chemical substances, efforts across ourentire supply chain are essential, and thus the cooperation of our suppliers, which are key
business partners, is essential.
By promoting green procurement efforts, we strive to manage chemical substances
appropriately to contribute to realizing a better global environment.
Countermeasures against Environmental Risks
Compliance with Environmental Laws and Regulations
In addition to clarifying environmental laws and regulations that apply to us as a company
and other requirements, when procuring manufacturing and power facilities, we also check
whether the relevant laws and regulations apply or not and take thorough efforts to prevent
omissions in complying with laws and regulations.
■ Centralized management of laws and regulations
To ensure complete compliance with environmental laws and regulations that are updated
every now and then, we regularly check the details of the said revisions. The details ofrevisions that apply to our plant are reflected and centrally managed in the “List of Laws andRegulations Registration and Assessment of Compliance.”■ Compliance assessment
Every year we assess the status of our compliance with environmental laws and regulations
that apply to the plant. In fiscal 2021, there were no violations regarding all the legal
requirements.
■ Checking compliance with laws when investing in and installing equipment
When making capital investments and procuring materials, we determine whether
environmental laws and regulations such as the Water Pollution Prevention Act andprefectural ordinances are applicable or not, and for facilities to which they apply, we takeaction such as submitting notifications as necessary.

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Environmental Measurements
To protect the environment around our company premises, we entered into an
environmental conservation agreement with Kitakami City. We establish our own strict
management standards for air, groundwater, etc. according to laws and regulations, and takemeasurements to monitor their status.
■ Measurement items
1. Items of environmental conservation agreement with Kitakami CityTo prevent soil pollution, we monitor groundwater measurements (fluorine), and to prevent
air pollution, we monitor exhaust gas (nitrogen oxide, etc.).
2. Other items
We regularly take samples and monitor items such as waste water, odious substances,noise, and vibrations.
While waste water is discharged into sewers, we establish our own strict standards
according to waste water standards to minimize the impact on rivers after sewage
treatment.

Groundwater Measurements

Noise Measurements■ Analysis center
We have set up an internal analysis center and established a system in which we can carryout analysis work swiftly from the samples we take.

KIOXIA Iwate Analysis Center

COD Analysis

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■ Checking changes in the environment around the plant
To check the changes in the surrounding environment caused by running the plant, we
conducted a survey of the water quality, air quality, and wildlife before and after we opened
the plant. In the results of the surveys before and afternew fabrication facility was started its
operation, we observed no changes to the surrounding environment.
Environmental Facilities
Environmental facilities such as waste water and emission processing facilities are installedbased on our own structural guidelines. For our structural guidelines, we establishedstandards for preventing pollution and reducing risks stemming from chemical substances.

System for Cleaning Exhaust Gas

Dike (Waste Water Relay Tank)

Double Pipeline for Joint

Prevent Leakage Pit

Accident and Emergency Response Training
We consider environmental risks such as accidents involving the handling of chemicals andnatural disasters, and implement training (accident and emergency response training) to beable to handle such incidents if they occur.
By sharing what we think together with our partner companies and setting training on
assumed work and communication structure, it helps to improve communication throughout
the company.

Scenario-Based Training Assuming the Leaking of Chemicals at the Time of Collection
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Environmental Communication
Environmental Communication Efforts with Local Community■ Project to protect cherry blossom trees
In Kitakami City, we are engaged in a project to protect cherry blossom trees to ensure thefantastic cherry blossoms of Tenshochi Park, a popular viewing spot, are around for the next
100 years.
We have participated in the Cherry Blossom Protection Workshop of this project since 2021,
helping with the work to provide fertilizer to the young cherry blossom trees in Tenshochi
Park.

Participation in Cherry Blossom Protection Workshop■ Checking changes in the environment around the plant
As three years have passed since we opened our plant in Kitakami City and production
efforts are in full gear, we conducted surveys of the water quality of the Kitakamigawa Riverand the status of the air quality and wildlife around the plant to check any changes to thesurrounding environment caused by the opening of the plant. We have not observed anychanges in the surrounding environment compared to before the plant was built.

Surveying the Water Quality ofBiological Survey of

Kitakamigawa River

Kitakamigawa River(Heiseiohashi Bridge)

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Efforts to Increase Understanding and Widespread Adoption In-House■ Monthly events
In June we carried out an Environment Month, in October a 3R Promotion Month, and in
February an Energy Saving Month. We clean up around the plant and hold tours of our inhouse environmental facilities to increase the environmental awareness of our employees.

Cleaning around the Plant■ SDGs initiatives
We engage in efforts to promote the widespread adoption and understanding of SDGs
among employees. As efforts in Environment Month, we invited suggestions forenvironmental activities related to SDGs, and distributed SDGs badges to people involved inenvironmental conservation operations for them to wear.

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Various Data
■ Environmental measurement data
We take environmental measurements based on the environmental conservationagreement with Kitakami City.
1. Results of boiler and exhaust gas measurements

2. Results of groundwater measurements■ PRTR (Ascertain the Emission and Transfer Amounts of Chemical Substances)
PRTR* is a system to ascertain, aggregate, and publish what chemical substances were
emitted into the environment (air, public water supplies, soil, etc.) from where and in whatvolume, and whether they were transferred (transfer amount) as waste, etc.
In the “Act on the Assessment of Releases of Specified Chemical Substances in theEnvironment and the Promotion of Management Improvement” (PRTR Act), it is obligatory toreport the emission amount and transfer amount if the annual handling amount of class I
designated chemical substances is 1 t or more (0.5 t or more in the case of a specified class
I chemical substance). At our plant, in addition to our emission amounts and transfer amounts,
we also disclose information on our handling amounts, consumption amounts, removal
processing amounts, and recycling amounts.
PRTR* Pollutant Release and Transfer Register (Unit: tons/year)

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■ Material Balance
1. Usage amount

2. Emission amountKIOXIA Iwate Corporation Environmental Report 2022
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Contact informationKIOXIA Iwate Corporation
In Charge of Environmental Conservation, Facility Management Division Facilities
Engineering & Operations Department
6-6, Kitakogyodanchi, KitakamiCity, Iwate

Environmental Protection Group024-8555

Tel. 0197-68-8221

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