Environment

Under the slogan of “Technology for Eco Life,” wehelp solving environmental issues through ourleading-edge technologies and services.
In the world today, there are various environmental concerns, including climate change, depletionof energy and natural resources, pollution by chemicals and waste, and decline in biodiversity. TEL
helps solving these issues through our leading-edge technologies and services.
32

TOKYO ELECTRON Sustainability Report 2016

Highlights
Energy consumption
level of a new equipment
model compared to aprevious generations

Reduction of water
consumption

Environmental
education

65

40

5,000

％

The Koshi factory in
Kumamoto reduced water
consumption by 65% during
equipment evaluation
process.

％

The latest TiN metallization system
reduced energy consumption by
40% compared to previous model.

peopleAbout 5,000 employees took a
web-based education course on
environmentally friendly design.

Goals and results for fiscal year 2016
Theme

Goals
●

Reduce environmental
impact of products.

Results

Develop a roadmap for understanding the current situation and achieving
the goals for fiscal year 2019*.
* Reduce energy and pure water consumption per wafer by 10%(using fiscal year 2014 as the baseline).

●●

Comply with Chinese RoHS.

●

Implement initiatives globally.

Products
Promote voluntary product compliance with European RoHS.
Comply with the environmental regulations of eachcountry.
Promote energy efficiency.

Factories
and offices

Reducing water consumption
Waste recycling

●

●

●
●

●

Continue to ensure products comply with environmental regulations(including China RoHS, GHS, etc.)

Maintain recycling rate at the fiscal year 2012 level for Japanese sites, andat the base year level for overseas sites.
●
Continue activities.
●
●

●

●

Continue activities.
Plan activities based on analysis of survey results, conduct the third green
procurement survey, and improve evaluation of low-scoring suppliers.

Reducing the environmental
impact of logistics●

Continue activities.

Environmental management system●

Adhere to the revised ISO 2015 standards.

Environmental education●

Provide web-based education on environmentally friendly design.

●

Implement education programs at design and procurement departments.

●

Continue to publish Environmental and Social Report.

Environmental communication

●

●

●

●

●

●

Based on the guidelines, conduct ecosystem tours multiple times at eachfactory in Japan.
●
Hold symposiums.
●
Create a list of conservation activity targets in key areas.
●

Biodiversity●●

In Japan: Attain a recycling rate of 97% or higher.
Outside Japan: Attain a higher recycling rate year-over-year.

Green procurement

Environmental Environmentally friendly
designmanagement●●

Reduce energy consumption by 1% year-over-year.
Continue activities.

●●

Procurement
and logistics

Maintain the percentage of compliant parts in major models of eachbusiness unit at 98.5% or greater.

Completed assessment of current situation of products manufactured in Japan and completed future
roadmap.
Integrated compliance initiatives for Chinese RoHS
with environmental product compliance initiatives inother countries.
Goal was achieved and the results were tallied.
Conducted initiatives on an ongoing basis and expanded the scope of these activities to production
sites outside Japan.
Of the 12 sites in Japan and abroad with an establishedgoal, 7 sites successfully reduced energy consumption
by 1% year-over-year.
Attained 11 out of 15 goals set for Japanese and overseas sites.
In Japan: Attained a recycling rate of 98.4%.
Outside Japan: Attained an increase of 0.3 percentage
point year-over-year at manufacturing sites.
This year’s green procurement survey was integrated
with the Supply Chain CSR Assessment.
Continued activities and monitoring.
Established an in-house project to adhere to the revised ISO 2015 standards and consolidate the environmental management systems for sites in Japan.
Provided web-based education to approximately
5,000 employees.
Programs implemented as part of the environmental
education mentioned above.
Continued to publish the report.

Conducted ecosystem tours in each area.
Held symposiums.
●
Created a list of conservation activity targets in key
areas.
●●

Framework
TEL promotes environmental activities across TEL through its corporate EHS Promotion Department. TEL executives appoint members to the product environment value meeting, the product environment compliance meeting, and the operation environment value meeting, all of which carry out activities to achieve ourenvironmental goals. The EHS council convenes twice a year to assess progress
toward our environmental goals and encourage continued improvement.
Since 1997, we have been working to obtain certification for the ISO 14001 environmental management standards. Seven sites, including many of our manufacturing subsidiaries, are currently certified. In fiscal year 2017, we plan to adhere to
the revised ISO 2015 standards by consolidating the environmental management
systems of our subsidiaries. Our Japanese systems will be consolidated first, followed by the overseas systems.
Through these efforts we continue to assess our compliance with environmental
laws, emission standards, and other voluntary standards. TEL has not been involvedin any environmental incidents or accidents. We have not been in violation of any
environmental laws or subject to any associated legal proceedings in fiscal year 2016.

Representative Director, President & CEO

Senior Executive Vice President, General Manager,
Development & Production Division
Development & Production Division
Manufacturing companies
presidents’council

EHS Council

Equipment
safetypromotion
meetingWorksafetypromotion
meeting

Product
environment
value
meeting

Product
environment
compliance
meeting

Operation
environment
value
meeting

TOKYO ELECTRON Sustainability Report 201633

Environment
Product initiatives
Environmentally friendly products
The total CO2 emissions from the TEL value chain (including raw material procurement and product manufacture, transport, use, and disposal) was calculated according to the greenhouse gas (GHG) protocol.
Emissions arising from product use currently account for 90% of our total emissions. For this reason, TEL
has made it a key corporate objective to promote environmentally friendly product design and has been
striving to lower the energy consumption of its products. In fiscal year 2015, TEL established a goal to reduce energy and pure water consumption by 10% by fiscal year 2019 (using fiscal year 2014 consumption
as the baseline). In fiscal year 2016, TEL expanded the scope of this program to include products produced
by its overseas subsidiaries. TEL also monitored TEL’s global energy use while seeking to improve overallthroughput. In addition, the percentage of sales of energy-saving models* increased to 84.8% of the total
product sales.
To reduce the overall environmental impact of our products at our customers’ sites, we must examine
our primary equipment, peripherals, associated facilities, and management of our own factories. Increasing
the operational efficiency of the entire production system is increasingly important, along with encouraging
energy-efficient operations of our customers’ sites. We will continue to focus on monitoring and controlling
our energy use. We also plan to demonstrate the importance of energy saving measures through compliance with SEMI S23, a semiconductor industry standard for assessing energy conservation.
To meet our goals, we are promoting environmentally friendly manufacturing through development of
new technologies, further reduction in the use of energy, water, and chemicals, and proactive measures tocontain greenhouse gases.

Percentage of energy-saving
model sales in total sales
84.8
72.0
52.0

2014

2015

2016
（FY）

* Based on in-house standards

Customer fabs
Save energy in fab operations(by scheduling and optimization)

Equipment
Reduce equipment energy use

Systems
Operate systems
efficiently
Peripherals
Reduce energy use in peripherals

Energy conservation features of TiN metallization system
Thin film deposition is a key process in semiconductor manufacturing. Conventionally, chemical vapor
deposition (CVD) 1 was the technology of choice for this process; however, the need for continued semiconductor miniaturization from our customers called for development of new equipment based on the
Advanced Sequential Flow Deposition (ASFD)2 process technology. This new technology not only enables
deposition of nanoscale film with highly engineered properties, but can also be implemented at temperatures lower than those for CVD, making it a superior deposition technology in terms of energy conservation.
TEL’s TiN metallization system was developed in response to this shift in process technologies. Due largely
to its low temperature processing and idle-time energy conservation feature, the system achieved a 50%
reduction in per wafer energy consumption in fiscal year 2014 as compared with its performance in fiscal
year 2008.
The latest Triase+TM EX-ⅡTM TiN Plus model features a newly developed reactor chamber and unique gas
injection mechanism to attain significant improvement in throughput while reducing the energy consumption level to 40% of the previous model. As a result, the new model achieved the corporate target of reducing energy consumption per wafer by 10% from the fiscal year 2014 level. This is three years ahead of the
fiscal year 2019 deadline.

34

TOKYO ELECTRON Sustainability Report 2016

1 CVD: A method for depositing
thin films on substrates by decomposing source materials
using thermal and/or chemical
processes.
2 ASFD: Advanced Sequential
Flow Deposition, a low-temperature processing method
for forming nanoscale metal
films with highly-engineered
properties.

Management of chemical substances contained in products
To achieve our goal of manufacturing environmentally friendly products, TEL has set up a system for managing hazardous chemicals in our products. In addition, we proactively collect information on relevant laws
and regulations in Japan and abroad to properly ensure compliance. For example, when any substance ofvery high concern (SVHC) is present in our products at a level of 0.1% or higher, we disclose the information
appropriately, based on EU REACH1 regulations. We also provide safety data sheets (SDS) on the chemicals
we use, in accordance with GHS2 requirements.
To comply more effectively with regulations such as REACH and China RoHS3, in April 2015 we conducteda survey of our Japanese suppliers regarding the chemicals contained in their products based on the JAMP
AIS4.
In fiscal year 2016, we expanded the previous year’s Seminar on Design for Environmental Complianceand offered the course not only to managers but also to staff members from relevant departments. The
seminar consisted of an overview of frequently revised environmental laws and regulations, lectures ontarget chemicals, and comprehension tests. About 5,000 employees took the course during the fiscal year.
We will continue to closely monitor and appropriately respond to relevant laws and regulations worldwide, further increasing our global efforts to reduce hazardous chemical substances.

1 EU REACH: EU Registration, Evaluation, Authorization and Restriction of Chemicals. An EU
regulation pertaining to the registration, evaluation, authorization, and restriction of chemicals.
2 GHS: Globally Harmonized System of Classification and Labelling of Chemicals
3 China RoHS: Chinese regulation
on materials including lead,
mercury, cadmium, hexavalentchromium, polybrominated biphenyls (PBBs), and polybrominated diphenyl ethers (PBDEs).
Businesses are required to provide customers with relevant
information on the use of thesematerials.
4 JAMP AIS: Article Information
Sheet (AIS) promoted by the
Joint Article Management Promotion-consortium (JAMP). This
sheet is used to communicate
basic information on regulated
chemical substances containedin products.

Logistics initiatives
Transport regulations are becoming more stringent due to worldwide environmental concerns such as
global climate change and the rising demand to reduce the environmental burden of logistics activities.
TEL has been implementing modal shifts5 to use less environmentally harmful means of transport whereapplicable. For example, we have adopted ocean shipment for some semiconductor and FPD production
equipment, and we are making efforts to reduce production lead time to compensate for the extra time ittakes to ship by ocean rather than by air. We have extended the use of shelved trolleys from the shipment
of FPD production equipment to semiconductor production equipment as well, thereby improving the loadfactor of trucks and reducing both CO2 emissions and costs.
Our CO2 emissions in fiscal year 2016 were 65 kilotons, down about 11% year-over-year. This is primarily
due to the increase in the ratio of outbound international ocean shipments.
To conserve resources, we are using recyclable cardboard boxes for packaging. After equipment has been
shipped and installed, casters and other specialized transport fixtures are collected and brought back to TEL
factories for reuse. These are only a few examples of TEL’s resource-saving efforts.

5 Modal shift: A change in themode of transport; specifically, switching from conventional freight transport by truck or
aircraft to a means that has alower impact on the environment, such as rail or ocean.

Product reuse and recycling
As the need for more varied semiconductor production equipment increases, TEL is encouraging reuse andrecycling of equipment and components by marketing refurbished TEL equipment and offering modification services to customers who have TEL equipment already installed.
Our refurbished equipment operations start with procuring used equipment from the market. This equipment is then properly tested and refurbished, before being offered to customers as TEL Certified Used
Equipment. Our equipment modification services boost the productivity of installed equipment by maintaining and improving its quality and availability. Through these approaches, we address our customers’cost, speed, and performance needs, while also contributing to waste reduction and resource conservation
and utilization. These efforts help reduce the use of resources and CO2 emissions associated with procuringand manufacturing equipment and components. They are also effective in reducing the costs of production,
logistics, and waste disposal.

TOKYO ELECTRON Sustainability Report 201635

Environment
Factory and office initiatives
Initiatives to prevent global warming and save energy
Each TEL factory and office has an established company goal of reducing energy consumption by at least 1%
year-over-year. Initiatives to achieve these goals include energy-saving clean room operation, optimum temperature settings for office cooling and heating, and the introduction of highly energy-efficient equipment.
Photovoltaic power generation systems have been installed at some of our factories and offices in Japan,
and the renewable energy they generated in fiscal year 2016 totaled 4,486 MWh. Tokyo Electron U.S. Holdings, Inc. has also been purchasing green electricity since 2001. Green electricity usage totaled 3,833 MWhin fiscal year 2016.
Out of the 12 TEL factories and offices worldwide with reduction goals, 7 achieved them in fiscal year
2016. Organization-wide power consumption in fiscal year 2016 was 254 GWh, down 7% year-over-year,
and CO2 emissions from energy consumption* were 147 kilotons, down 8% year-over-year.
* In calculating CO2 emissions, the emission factor for TEL’s electricity consumption in Japan in fiscal year 2016 was substituted by adjusted emission factors for the electrical power providers concerned. The emission factor for TEL's overseas electricity consumption was substituted byestimated factors calculated by the Federation of Electric Power Companies of Japan based on values published by the International Energy
Agency (IEA).

Electricity consumption(Million kWh)

223.0

208.8

72.2

65.6

2014

2015
Overseas

TEL has established a goal of keeping water consumption at the same level or below that of a baseline year
(fiscal year 2012 for factories and offices in Japan, and a fiscal year of their choosing for overseas operations).
In fiscal year 2016, we achieved 11 out of the 15 goals at our sites worldwide. Continued efforts to achievethese goals include installing water-saving devices, watering lawns with rainwater, and implementing intermittent operation of cafeteria faucets. Overall, we reduced water consumption by 30% year-over-year
to 1,076,000m3 in fiscal year 2016, due in part to the closure of some overseas facilities. In fiscal year 2016,
we discharged an estimated 905,000m3 of wastewater.
Example of initiatives
In fiscal year 2016, the Koshi factory in Kumamoto opened a facility for reusing water discharged from thesemiconductor production equipment evaluation process, reducing water consumption by about 65%. The
plant expects to recover its investment for this facility renovation in 1.8 years or less. In another example,
the Fuchu Technology Center in Tokyo installed water-saving devices in the restrooms and the kitchen,
reducing the overall water consumption by 12% year-over-year.

2016
(FY)

Water consumption(thousand m3)

1,043
896

612

503

Electricity consumption(Million kWh)

223.0

180
208.8

198.4

2014

2015

Japan

Overseas

72.2

2014

Initiatives to reduce water consumption

55.8

Japan

1,058

Example of initiatives
The Hosaka factory in Yamanashi installed a new air conditioning control system for its clean room. The
atmosphere in a clean room must be precisely controlled, not only for cleanliness, but also for temperatureand humidity. When controlling temperature and humidity, overcooling should be avoided, because overcooling must be compensated for by heating, which increases wasted energy. The newly installed systemaccurately monitors the atmospheric temperature and humidity inside and outside of the clean room andenables the air conditioning equipment to operate in an energy-efficient manner. As a result, the Yamanashi
Factory saved about 670 MWh of electricity (335 tons of CO2) and 140 kl of heating oil (350 tons of CO2)
in a year, reducing CO2 emissions by 685 tons. The factory estimates that the system upgrade costs can berecovered within three years.

198.4

65.6

2015

2016
(FY)

55.8
2016

Recycling rate and (FY)Japan
Overseas
generation of incinerated
and landfill waste
in Japan(tons)

98.9
98.4
Water
98.0 consumption(thousand m3)

1,058
1,043
Maintain recycling rate of
172 Target:
97% or more
896
122
94
612
503
2014

2015

180
2016
(FY)

Incinerationand land¬fill
2014
2015
2016
(FY)
Recycling rate
(%)
Japan
Overseas

Recycling rate andgeneration of incinerated
and landfill waste
in Japan(tons)

98.0

98.9

98.4

172 Target: Maintain recycling rate of
97% or more

94

36

TOKYO ELECTRON Sustainability Report 2016

2014

2015

122

2016
(FY)

180
2014

2015

Japan

Overseas

2016
(FY)

Initiatives to reduce waste
TEL is contributing to waste reduction and recycling whenever possible by sorting waste, switching towaste-free production processes, and disposing of non-recyclable waste in an appropriate manner. TEL
actively advocates waste sorting, and some of its facilities have participated in the electronic manifest system1 to ensure proper waste management. In fiscal year 2016, the amount of incinerated and landfill waste
generated by TEL in Japan was 122 tons. As a result of our waste-reduction initiatives, the recycling rate2
at sites in Japan in fiscal year 2016 was 98.4%, achieving our goal of maintaining a recycling rate of 97% orhigher for the 10th consecutive year. The recycling rate for TEL’s overseas factories and offices was 87.9%
in fiscal year 2016.
Example of initiatives
TEL FSI, Inc., in Chaska, Minnesota, takes waste recycling measures, such as eliminating the use of disposable
plastic cups and composting paper towels. As a result, TEL’s recycling rate for 2015 increased to 70%, anincrease of 6% from 2014.

Management of chemical substances
TEL uses chemical substances in our product development and manufacturing phases. The use and release ofchemical substances that are under the purview of the Japanese PRTR3 law are consistently monitored andmanaged. Whenever we introduce a new chemical substance or change the way an existing substance is used,
we check for environmental, health, and safety risks beforehand. We dispose of hazardous substances properly after use, either through expert waste disposal contractors or by using in-house processing equipment.
In response to the April 2015 revision to the Fluorocarbons Recovery and Destruction Law, we have been
conducting simple, regular inspections to monitor the amount of fluorocarbons that have been released andhave been used in equipment as a refrigerant and the amount that has been recovered. In fiscal year 2016, ourfactories and offices did not exceed the level of fluorocarbon leakage that requires reporting.

Biodiversity
TEL’s activities impact biodiversity while also benefiting from it. In recognition of this, we are making efforts
to conserve biodiversity and improve the conservation system.
In fiscal year 2016, as in 2015, TEL met our goal of conducting at least two ecosystem tours at our Japanese sites, as part of our biodiversity conservation activities. The Koshi factory in Kumamoto held a lecture on biodiversity and biomimicry4, as well as an ecosystem tour of the property surrounding the plant,
guided by members of the Forest Instructors Association of Kumamoto Prefecture. The tour’s participants
observed nearly 50 different plant species, and learned about the plants’ characteristics. In addition, TEL
drew up a list of targets for its conservation activities for fiscal year 2017, assessing the impact of previous
ecosystem tours and consulting the Red List5 of threatened species in the prefectures where TEL’s offices
and plants are located.

Recycling rate andgeneration of incinerated
and landfill waste
in Japan(tons)

98.0

98.9

98.4

172 Target: Maintain recycling rate of
97% or more

94

2014

2015

122

2016
(FY)

Incineration and land¬fill
Recycling rate (%)
1 Electronic manifest system: A
system for electronically tracking the flow of industrial waste
instead of using paper-based
manifests (i.e. paper forms for
tracking industrial waste). With
this system, data processing
centers, businesses that generate waste, and waste collection/disposal companies can share
information over communications networks to streamline
waste tracking.
2 Recycling rate: (Recycled amount/
Amount of waste generated) × 100

3 PRTR: Pollutant Release and Transfer Register. A framework for
tracking, tabulating, and disclosing quantitative data on chemical
substances that may be hazardous to human health and the ecosystem, including the amounts
used and discharged into theenvironment and the amounts
transferred (as part of waste) off
the original business’ premises.

4 Biomimicry: An approach to creating innovative technologies byemulating the characteristics ofliving things.
5 Red List: A list of wild plants andanimals facing extinction.

Environmental communication
TEL’s environmental policy requires that we foster a cooperative partnership with our wide-ranging stakeholders to reduce our environmental burden and properly respond to their expectations.
In both 2014 and 2015, the Esashi factory in Iwate invited its neighbors and local government representatives to the 6th Environmental Debriefing for the Local Community. TEL also held lectures at anenvironmental skill-building seminar for local businesses in Oshu City, Iwate Prefecture, and at the 2nd
Environmental Business Seminar in Sendai City, Miyagi Prefecture, to enhance communication with our
stakeholders and provide transparency around TEL’s environmental activities.

TOKYO ELECTRON Sustainability Report 201637