Tokyo Seimitsu Co., Ltd.
Sustainability Committee

2968-2, Ishikawa-machi, Hachioji-shi, Tokyo
192-8515, Japan
Phone: +81 (0)42-642-1701
Fax: +81(0)42-642-1798
URL: https://www.accretech.com/en/
Issued: September 2023

Hachioji and Tsuchiura Plants obtained ISO 9001 andISO 14001 certifications simultaneously.

Tokyo Seimitsu

SUSTAINABILITYREPORT 2023

CONTENTS

3 Sustainability of the Tokyo Seimitsu Group
4 Purpose of the Tokyo Seimitsu Group

10 Materiality Issues

5 Sustainability System Chart

12 Sustainability Promotion Structure

6 Message from CEO

14 Stakeholder Engagement

8 Message from COO

17

Initiatives to Address Environmental Issues
18 Environmental Management

26 Resource Recycling and Waste Reduction

20 Climate Change

27 Water Resources

22 TCFD Response
24 Environmental Contribution through the Provisionof Products(Eco-products)

28 Chemical Substances Control

29 Initiatives to Address Social Issues
30 Respect for Human Rights

42 Health Management

32 Quality

44 Diversity & Inclusion

34 Semiconductor Manufacturing Equipment Business Support Quality

45 Work-Life Balance

35 Precision Measuring Instrument Business Support Quality

46 Human Resource Development

36 Supply Chain Management

48 Social Contribution

38 Occupational Health and Safety

49 Governance

50 Corporate Governance

SUSTAINABILITY
Sustainability of theTokyo Seimitsu Group
4 Purpose of the Tokyo Seimitsu Group
5 Sustainability System Chart
6 Message from CEO
8 Message from COO
10 Materiality Issues
12 Sustainability Promotion Structure
14 Stakeholder Engagement

58 Risk Management

56 Compliance

60 Data/Site Report
60 Environment

70 GRI Standards Content Index

63 Society

74 Company Profile

66 Governance
67 Site Report
68 Introduction to Group Companies

Forward-looking Statements
The current plans, forecasts, strategies, and other non-historical matters disclosedby the Tokyo Seimitsu Group are forward-looking statements about future performance. These statements are based on information currently available to theTokyo Seimitsu Group and the assumptions that Tokyo Seimitsu Group considers
reasonable, such as domestic and overseas economic conditions, exchange rate
fluctuations, and other factors affecting the business results, and they are not intended for expressing the commitment of the Group to realize them.
They are bound to be influenced by many uncertain factors, including market
conditions, competition, new product introduction as well as the success or failure
thereof. Accordingly, actual results may differ materially from these forward-looking
statements.

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SUSTAINABILITY REPORT 2023

FTSE Russell (a registered trademark of FTSE International Limited and Frank Russell
Company) hereby certifies that Tokyo Seimitsu Co., Ltd. has met the requirements forinclusion in the FTSE Blossom Japan Index as a result of an independent third-party
review. The FTSE Blossom Japan Index is an index created by global index provider
FTSE Russell and designed to measure performance of Japanese companies that
demonstrate outstanding ESG (Environment, Society and Governance) practices.
The FTSE Blossom Japan Index is widely used to create and evaluate sustainable
investment funds and other financial products.

SUSTAINABILITY REPORT 2023

03

Sustainability System Chart

Gaging the Future with Metrology,
Creating the Future with Semiconductors

Aiming to Realize a Sustainable Society and the Sustainable Growth of the Tokyo Seimitsu GroupThe Tokyo Seimitsu Group contributes to creating the society of the future through both

For this reason, in November 2021, we formulated the Basic Sustainability Policy and established the Sustainability

its Metrology Business and Semiconductor Manufacturing Equipment Business

Sustainability of the Tokyo Seimitsu Group

Purpose of the Tokyo Seimitsu GroupAs the corporate operating environment is undergoing drastic changes, this has prompted us to reaffirm the importance of sustainability as a management issue and enhance our sustainability activities.
Committee. Aiming for the sustainable growth of the Tokyo Seimitsu Group and society, the Sustainability Committee decided on our raison d'être (Purpose) and ideal state (Vision). Using this as a starting point, we will enhance theeffectiveness of our sustainability activities by defining material issues and reflecting specific initiatives and targets in

instruments equipped with advanced measurement technology to industries since its inception.

the Mid-term Management Plan. In addition, we will strengthen our sustainability promotion structure to realize ourIn the Semiconductor Manufacturing Equipment Business, In 1958, the Tokyo Seimitsu Group participated in the semi-

Purpose, and aim to realize a sustainable society and the sustainable growth of the Tokyo Seimitsu Group through di-conductor manufacturing equipment-related industry for the development of germanium pellet automatic thickness sorting

alogue and collaboration with our stakeholders.

Initiatives to Address Environmental Issues

Started as a precision equipment company in 1949, the Tokyo Seimitsu Group has been providing precision measuringmachine, and launched Japan's first wafer slicing machine in the market.
While devices have been miniaturized, our measurement technology has been utilized in manufacturing equipment ofsemiconductor devices that require production efficiency, being the only semiconductor manufacturing equipment manufacturer with a metrology business makes us unique and serves as the source of our strength.

Sustainability System Chart

Gaging the Future with Metrology, Creating the Future with
Semiconductors.

The Tokyo Seimitsu Group will continue to contribute to creating an enriched society of the future through both its Metrology Business and Semiconductor Manufacturing Equipment Business.

Initiatives to Address Social Issues

Our Ideal State in the Future: Where We are Headed

Purpose

Corporate Philosophy

Value of Our Existence: The Reason for Existing in Society

The Tokyo Seimitsu Group is always committed to building a“future full of dreams.”•Semiconductor Company: Contribute to the realization of anadvanced networked society with cutting-edge technology.

Growing together with partners and customers by collaborating technology,•Metrology Company: Aim to become a future-creating company
that supports “innovation in manufacturing.”

knowledge, and information to create the world’s No. 1 products

Duty and Objectives: What We Must Do•Grow together with partners and customers by collaborating

VisionMOTTO

technology, knowledge, and information to create the world’s
No. 1 products•Create the world's No. 1 products through WIN-WIN relationships

A simplified version of our Corporate philosophy, our WIN-WIN motto does not only pertain to business relationships.

MissionGuidelines and Value Standards:
How We Realize Corporate Value

Governance“WIN-WIN Relationships Create the World's No. 1 Products”•ACCRETECH Group Action Guidelines•ACCRETECH Group Code of Conduct

It aims at growth by forming WIN-WIN relationships with stakeholders by growing together to create the world’s

https://www.accretech.com/en/company/action_guidelines.html

No. 1 products.

Basic Sustainability Policy

Value

Corporate Brand

The Tokyo Seimitsu Group strives to enhance its corporate value
while playing an active role aimed at realizing a sustainable society byforming WIN-WIN relationships with all shareholders, including customers, shareholders, suppliers, employees, local communities, andA fusion of "Accrete" and "Technology," signifying Grow Together. Our symbol mark represents our Corporate Philosophy, which is “Growing together with partners and customers by collaborating technology, knowledge, and information to create the world’s No. 1
products.”

the international community, through our business activities based on

Basic Sustainability Policy
Sustainability Objectives
Materiality Issues

Data/Site Report

ACCRETECH

our Corporate Philosophy “Growing together with partners and customers by collaborating technology, knowledge and information tocreate the world’s No. 1 products,” which we put into practice.
1. Efforts to address environmental issues
2. Earning the trust of society
3. Respect for human rights
4. Human resource development
5. Participation in and contribution to local communities

Basic Sustainability Policy (in full)https://www.accretech.com/en/sustainability/esg/guideline.html

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SUSTAINABILITY REPORT 2023

6. Building and running a fair, transparent, and efficient corporate
governance system

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05

Message from CEO
Sustainability of the Tokyo Seimitsu Group

Serving as a Global Company
While a company carries out its business activities, I think that it must be mindful not only of its
customers but also of employees, business partners, shareholders, local communities, governments, as well as other various stakeholders in order to build better relationships with them.
Currently, as overseas sales account for 73% of our net sales, the Tokyo Seimitsu Group has a
network of bases in various countries and regions, including the Americas, Europe, East Asia,
on a daily basis. Under these circumstances, I am increasingly convinced about the importanceof creating relationships with all our stakeholders from a standpoint of fairness and impartiality.
At the same time, we must also respond to global environmental changes, including climatechange. With the expansion of international frameworks, such as the Paris Agreement and theSDGs, the Tokyo Seimitsu Group is also carrying out initiatives in order to fulfill its responsibility ofcontributing to the realization of a sustainable society.
In light of these circumstances, our Group has defined “efforts to address environmental issues,”“earning the trust of society,” “respect for human rights,” “human resource development,” “participation in and contribution to local communities,” and “building and running a fair, transparent,and efficient corporate governance system” as important short- and medium-term initiatives

Initiatives to Address Social Issues

The Tokyo Seimitsu Groupis always committed
to building a“future full of dreams”

Initiatives to Address Environmental Issues

and Southeast Asia, and expands its business as it connects with stakeholders around the world

which have been clarified in 2021 through our Basic Sustainability Policy.

Creating New Value through Both Our Precision Measuring Instrument
Business and Semiconductor Manufacturing Equipment Business“Gaging the Future with Metrology, Creating the Future with Semiconductors,” the Purpose of theTokyo Seimitsu Group, expresses our commitment to contribute to society through our businessmodel of supporting our customers' manufacturing activities, uncovering their needs, and solving
various technical issues based on our core precision measuring technologies. We are able tocreate newly added value by combining the technologies from our Precision Measuring Instru-

Governancement Business, which manufactures equipment designed to measure things, and Semiconductor
Manufacturing Equipment Business, which manufactures semiconductors.
For example, in EVs, our semiconductor manufacturing equipment plays an essential role in the
popularization of high-performance devices, such as MCUs (Micro Controller Units) and power
semiconductors, by measuring mechanical components with precision measuring instrumentsthat are more precise than ever before to ensure that the devices perform as they were designed.
Accordingly, having recognized that our products play an extremely important role in helping tosolve the social issues we are currently facing, we are in the process of investing in R&D and expanding our production scale in order to meet expectations.

Data/Site Report

Over the long term, I think the fusion of virtual and physical spaces will continue to progress,
which will make the world become more sustainable and prosperous. As a corporate entity thatis always committed to building a “future full of dreams,” I would like to see the Tokyo SeimitsuGroup continue to work alongside our stakeholders to see those dreams become a reality.
September 2023

Chairman and CEO

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07

Message from COO
Sustainability of the Tokyo Seimitsu Group

Response to Climate Change
In August 2021, the Tokyo Seimitsu Group launched the TCFD response project in order to contributeto solving the issue of climate change as a member of society. In March 2022, the Group announced its
support for the TCFD's recommendations. Considering the realization of a decarbonized society throughour businesses and products to be the most important activity that contributes to sustainable development, we are moving forward with R&D investment and expanding our production scale.
ority. By 2030, we aim to reduce our CO 2 emissions by 50% compared with fiscal 2018 levels, and areworking to achieve that target through efforts such as making an effort to determine total CO 2 emissions
through Life Cycle Assessment (LCA) of products.

Contributing to Decarbonization and Responding to the Anticipated Decreasein the Global Workforce
We are currently entering a phase in which demand for products from both our Precision Measuring Into decarbonization efforts.
In the Semiconductor Manufacturing Equipment Business, demand for high-precision semiconductor devices, electronic components, and power semiconductors is increasing due to the advancement of autonomous driving and a networked society, and materials other than silicon, such as silicon carbide, arestarting to be used in power semiconductors. In recent years, developed countries have strengthened
semiconductor production as a national strategy, and although it may change the geopolitical balance ofpower in the future, the semiconductor market itself is sure to expand.

We promote the further
enhancement ofsustainability with thebelief that our businessactivities are the key
to achievinga sustainable society

Initiatives to Address Social Issues

strument Business and Semiconductor Manufacturing Equipment Business will increase significantly due

Initiatives to Address Environmental Issues

At the same time, reducing the CO 2 emissions generated from our business activities is a strategic pri-In the Precision Measuring Instrument Business, there is growing demand for instruments capable of performing measurements to check the workmanship of goods and evaluating the performance of EV batteries. Such measurement-related demand is due to the increasing popularity of mechanical parts found inEVs, which require an even higher level of high-precision machining than those found in internal combustion
Governanceengine vehicles.
In addition, manufacturing is becoming increasingly automated in anticipation of a decrease in the global
workforce. I believe that further progress in automation, where robots play an active role in factories, etc.,
will be a growth opportunity for our Company in the medium to long term.
We are currently implementing our Mid-term Management Plan, which was started in fiscal 2022. Businessperformance during the first year of the plan reached all-time highs due to expanding demand for semiconductor manufacturing equipment. In addition, the Hanno Plant was completed in July 2023 to expand the
production capacity necessary to achieve the quantitative targets for fiscal 2024, the final year of the plan.
Through these initiatives, we will contribute to a sustainable society. Furthermore, from the next Mid-term

Data/Site ReportManagement Plan (which will start in fiscal 2025) onward, we intend to further strengthen our sustainability
activities, not only in terms of quantitative results, so that Tokyo Seimitsu’s continued involvement in these
initiatives will be recognized as a contribution to a sustainable society.
September 2023

President and COO

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SUSTAINABILITY REPORT 2023

SUSTAINABILITY REPORT 2023

09

Materiality Issues

Sustainability Objectives and Priority Initiatives
The Tokyo Seimitsu Group has established sustainability objectives and priority initiatives in order to incorporate important issues(materiality) for the Group into concrete activities. The Sustainability Committee as well as teams and task forces created to address
important issues formulate and implement action plans based on that framework.

• Realization of a Digital Society and the
Associated with a Digital Society• Development of a Highly Efficient/Optimal• Awareness of the Importance of a
Sustainable Society

provision of products and services

S
Societysocial issues• Emergence of Sophisticated Devices
Aimed at the Realization of Society 5.0• Increase in the Number of Semiconductors and Electronic Components

Packaging) Due to the Limits of 2D Package Miniaturization

Creating a workplace where a diverse

G

range of people can play an active role
and are physically and mentally healthy
and fulfilled in their work

Metrology Company• Expansion of EV and Electrification
Technology Markets Aimed at Carbon• Respect for human rights•P revention of human rights
violations• Respect for Human Rights• Product liability• Quality control• Stable supply of parts• Quality• Reduction of procurement risk•R einforcement of the supply
chain• Supply Chain Management• Working environment• Health and safety• Diversity• Human resource development• Labor standards• Health and safety• Increased diversity• Training program

P38• Occupational Health and Safety
P42• Health Management
P44• Diversity & Inclusion• Human Resource Development P46• Sustainable business growth• Enhanced competitive strength• Fair, transparent, and prompt
corporate activities• Anti-bribery andanti-corruption• Internal control• Audit function•C orporate ethics and legal compliance• Information disclosure• Whistleblower system• Compliance education• Corporate Governance
P56• Compliance• Crisis management against
disaster• Business continuity plan

• Risk Management

Respect for Human Rights

P30

P32

P36

Governance• Expansion of 3D Mounting (Advanced

Supply chain development

Governance

GaN) to Contribute to Decarbonization

S
Society• Innovation of Power Semiconductors (SiC/• Environmental Management
P18
P20• Climate Change•E nvironmental Contribution through theP24
Provision of Products•R esource Recycling and Waste Reduction
P26
P27• Water Resources
P28• Chemical Substances

Environmental contributions through theHigh-value-added products that resolve

Semiconductor Company• Prevention of global warming• Resource-saving activities• Formation of a recyclingoriented society• Reduction of CO2 emissions•R eduction in consumption ofelectricity, water, and paper• Reuse of waste as resources•E nvironmentally friendly products• Chemical substances control

problems• Tokyo Seimitsu’s Current and Future
Business Trends

Action plans and results

Initiatives to Address Social Issues

Social Environment and Infrastructure

Environment

Diverse Needs and Regulations

Products and business activities that

E contribute to resolving environmental

E
Environment• Climate Change

Materiality Issues

Priority initiatives

Initiatives to Address Environmental Issues

Sustainability objectives

Changes in theBusiness Environment

Sustainability of the Tokyo Seimitsu GroupIn line with the Mid-term Management Plan (started in fiscal 2022) for fiscal 2024, after reviewing the status of
the value chain surrounding the Group’s activities, its impact on the environment and society, and other issues
to be taken into account, the Tokyo Seimitsu Group has revised its materiality as follows. By presenting specificinitiatives and goals, we have clarified the issues that each employee needs to address and made it easier forthem to understand the value of their work, thereby increasing their motivation. We will continue to revise ourmateriality as necessary and appropriate.

P50

P58

Neutrality

Process of Defining the Material Issues• Increased Demand for Product Quality
Processes/Elimination of the PossibiliForward for Back-end Processing)• Need for New Measurement Technologies in Expanding Growth Fields(Fields Including the Semiconductor,
Aircraft, and Medical Fields)

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SUSTAINABILITY REPORT 2023

G corporate activities
Governancety of Defective Products Being Passed

Management foundation that supports

Compliance
Stronger risk management

STEP 1

STEP 2

Organize Tokyo Seimitsu’s per- Extract business risks and opspective on sustainability
portunities in the value chain bysocial value

STEP 3
Based on the results extracted in STEP 2• E valuate and rank by impact
on the global environment andstakeholders• Evaluate and rank according torelevance to our value creationand management strategy

Data/Site Report(Incorporation of Quality in Production

STEP 4Extract material issues from theresults of STEP 2 and STEP 3 torealize our Purpose and Vision• Deliberation and approval by
the Board of Directors at the
May 2022 meeting on important matters

SUSTAINABILITY REPORT 2023

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Sustainability Promotion Structure
Sustainability of the Tokyo Seimitsu GroupTokyo Seimitsu established the Sustainability Committee, which is chaired by the Chairman and CEO, to oversee
all of our sustainability activities. The Sustainability Committee is linked with six expert committees, the Supply
Chain Promotion Subcommittee, Human Resources Department, and each Plant General Affairs Department,
which work to enhance human capital. In addition, beneath the Sustainability Committee, we have established six
teams to handle important issues. Subcommittees will be established by the Committee Chairman when there areurgent issues that need to be addressed.

FY2022 Subcommittees
TCFD Response Project
Leaders:

General Manager of Management Support Dept. and General Manager of Sustainability Dept.

Members:

Technology Div., Manufacturing Dept., Quality Assurance and Service Div., Sales Div., and Secretariat (Management
Support Dept. and Sustainability Dept.)

Period active: 2021 – 2023

Board of Directors

Executive Management
Meeting

Risk Management Committee
Compliance Committee

Briefing

Environment Management
Committee

Briefing

Teams for Responding toImportant Issues (Standing Teams)

Quality Management
Committee

Sustainability Committee

Safety and Health Committee

Committee Chairman: Chairman and CEO

Subcommittees
TCFD Response Project

Coordination

Human Rights Activity ProjectWorking Group for Information
Disclosure

Information Security
Committee
Supply Chain Promotion
Subcommittee
Human Resources
Department and each
Plant General Affairs
Department

Human Rights Activity Project
Leaders:

Team Leader of Human Resources Dept.

Members:

General Manager of Human Resources Dept., General Manager of Management Support Dept., General Manager of Production Control Dept. (Semiconductor Company), General Manager of Production Control Dept. (Metrology Company), General Affairs Dept. (Hachioji Plant), and General Affairs Section (Tsuchiura Plant)

Period active: 2022 – 2024

Working Group for Information Disclosure
Leaders:

General Manager of Sustainability Dept.

Members:

Public Relations Dept., Management Support Dept., and Sustainability Dept.

Initiatives to Address Social Issues• Human Capital• Quality• Health and Safety• Technology• Supply Chain• Environment

Initiatives to Address Environmental Issues

 ustainability Promotion StructureS(as of March 31, 2023)

Period active: 2022 –Teams for Responding to Important Issues (Standing Teams)
Sustainability Committee
Committee Chairman: Chairman and CEO
Vice-Chairpersons: President and COO, Executive Vice President and CFO, and Head of Metrology Company

Functions:

12

From the Semiconduc- Plant Manager of Hachioji Plant,
tor Company
General Manager of Technology Div., General Manager of Sales Div.,
General Manager of General Affairs Dept., Person responsible for environmental management,
General Manager of Production Control Dept., General Manager of Quality Assurance Dept.,
and General Manager of Service Div.
From the Metrology
Company

Plant Manager of Tsuchiura Plant,
General Manager of Technology Div., General Manager of Sales Div.,
General Manager of General Affairs Dept., Person Responsible for Environmental Management, General Manager of Production Control Dept., General Manager of Quality Assurance
Dept., and General Manager of Metrology Center

From the Administration Company

General Manager of Environmental Green Initiative Team, General Manager of IT Dept.,
General Manager of Human Resources Dept.,
General Manager of General Affairs Dept., General Manager of Public Relations Dept., andGeneral Manager of Legal Affairs Dept.

Group Companies

Tosei Engineering Corp., Tosei Box Corp., Tosei Systems Co., Ltd., and Accretech Powertro
System Co., Ltd.

Twice a year
Formulates basic policies, establishes an operational structure, and sets targets/indicators
Reports and provides recommendations during each Executive Officers’ Meeting and Board of Directors’ Meeting
Monitors implementation of policies and collects various types of information

SUSTAINABILITY REPORT 2023

Teams for Responding to Important Issues, Subcommittees' PDCA
Each year, the Sustainability Committee
comprehensively assesses objectives, organizations, systems, risks, and opportunities
and incorporates specific activities and goals
into a plan (PLAN step of the cycle), which isapproved by the Board of Directors and thenimplemented (DO step of the cycle) by the subcommittees and six teams for handling important issues. The results associated with eachtheme addressed are discussed (CHECK stepof the cycle) at regular progress management
meetings, and continuous improvements aswell as plan reviews (ACTION step of the cycle)
are repeated as necessary to improve initiatives
so that they can be more effective. The results
are reported to the Board of Directors.

 DCA Cycle forP
Sustainability Activities

Board of Directors
Approval

ACTION
Continuous
improvements are
made and plans
are reviewed

Briefing

PLAN
Data/Site Report

Frequency of
meetings:

Directors

GovernanceCommittee
members:

Beneath the Sustainability Committee, we have established six teams (Human Capital, Quality, Health and Safety, Technology, Supply Chain, and Environment) to handle important issues. The teams focus on priority initiatives in line with sustainability
themes, and their members consist of leaders and personnel from the Administration Company, Semiconductor Company, Metrology Company, and subsidiaries of Tokyo Seimitsu Co., Ltd.

Plans areformulated by
the Sustainability
Committee

CHECK
Progressmanagement isperiodicallyconducted

DO
The plans are
implemented byeach team andsubcommittee

SUSTAINABILITY REPORT 2023

13

Stakeholder Engagement

Customers
Support customers’ manufacturing- Enrich workplace environ-ment of a sustainable society

ments that give workers asense of fulfillment

Industry
Groups- Promote human resource
development

Tokyo
Seimitsu
Group

Contribute to the growth of
the industry through active
interaction

Suppliers

Tokyo Seimitsu’s Responsibilities

Major Means of Communication• Consideration of human rights and compliance with labor-related laws and regulations• Initiatives for safe workplace environments• Creation of healthy workplaces where people can work with a sense of purpose• Realization of comfortable workplace environments where people
can play active long-term roles• Provision of opportunities for every individual to grow

• Labor-management negotiation• Whistleblower system• Education, seminars, e-learning• Regular meetings between supervisors and subordinates• Message from the Board to employees at the beginning of the year
• Information dissemination via company newsletters and intranet

Fiscal 2022 Major Results
Objectives
Securing of safe and secure workplaces

responsibility

Local Community- Clarify issues through dialogue

Rate of taking five or more days of annual paid leave: 100%

Action Plan for Promoting Employment
and Careers of Women

Percentage of female regular employee hires: 18.3%
Percentage of female regular employees: 8.5%

Human resource training/development

Common training (major themes) : 2,878 hours*
Level-specific training (major themes) : 7,061 hours*

Provision of opportunities for every individual
to grow

Scope: Full-time employees of Tokyo Seimitsu Co., Ltd. (non-consolidated basis)

Shareholders and Investors
Tokyo Seimitsu’s Responsibilities

Major Means of Communication• Timely, appropriate, and fair disclosure of corporate
information• Assurance of shareholders' rights, equality, etc.
• S ecure earnings and appropriate profit distribution
through medium- and long-term corporate growth• General meeting of shareholders (once a year), Issuance of shareholder newsletters(twice a year), and Briefings for Individual Investors (once a year)• Business results briefings (four times a year) and dialogue with institutional investors and security analysts• Reports (Securities Report, Sustainability Report, etc.)• Website (IR information, Sustainability, product information, etc.)

Fiscal 2022 Major Results

contribution activities

Objectives

Major Means of Communication• Implementation of customer satisfaction questionnaire (once a year)• Support from Sales and/or Customer Service Divisions (as needed)• Exhibitions/events (several times a year)• Metrology Centers (seminars and workshops, private trade shows,etc.) (several times a year)• Training services, remote services, etc.

Number of times: 8

https://www.accretech.com/en/ir/library/financial_summary.html

Increased customer satisfaction

Questionnaire-based survey

Customer satisfaction surveys (once a year)
Percentage of satisfactory ratings : 93.3%

Stable parts supply structure

17 locations in Japan and overseas, CE Stock Search System

Customer training

Remote support using smart glasses

Metrology Centers

Four locations in Japan, nine overseas

Hachioji City

Main expectationsand values

Community/system

Main outcome of activities

Coexistence withlocal companies

Tokyo Federation of Labor Standards
Associations, Hachioji Branch

General Affairs and Public Relations Department Hachioji branch,
regular public relations newsletter published 5 times/year

Fire prevention
campaign

Hachioji Firefighting Four-Party
Cooperative

Participated in fire prevention campaign as a member of the Japan Associationfor Safety of Hazardous Materials

Environmental
Hachioji City Adopt-A-Road Program
conservation activities

Cleanup of the rotary on the east side of JR Kita-Hachioji Station:
4 times, 176 participants

Tsuchiura City

Tsuchiura City Pollution Control Agreement Submission of pollution control plan, business plan, and implementation report
Environmental
conservation activities Eco-partner Agreement
Cleanup of Nakanuki Park: 50 times, total 100 participants

Local schools

Support for students

Consigned measurement

Data/Site Report• Joined Tokyo Federation of Labor Standards Associations, Hachioji Branch• Special lectures for local students (every few years)• Submission of pollution control plan and activity report to Tsuchiura City (once a year)• Volunteer activities

Main outcome of activities

SUSTAINABILITY REPORT 2023

Number of times: 1 (online participants: 1,315)

Major Means of Communication

Seminars and classes (including web-based seminars)

14

Number of times: 4

Briefings for individual investors• Activities that contribute to local companies• Activities that contribute to local communities• Disaster relief and stockpiling in surrounding areas

Initiatives/structures

Overseas technical training

Number of times: 340 total

Conferences for overseas investors

Tokyo Seimitsu’s Responsibilities

Objectives

Provision of solutions

Number of times: 1; Rate of exercise of voting rights: 81.8%

Handling coverage by institutional investors/analysts

Local Community

Fiscal 2022 Major Results

Overseas showrooms

Main outcome of activities

100th Regular Shareholders’ Meeting

Business results briefings materials and other materials

Relationship withlocal communities

Support activities to build customer’s future

Initiatives/structures

Business results briefings/press conferences

Fiscal 2022 Major Results

Global support structure

Video dissemination on health topics

Governance• Product quality (provide stable and reliable products)• Support quality (provide prompt and meticulous support)• Delivery quality (ensure safety at production sites)• Provide environmentally friendly products• Manage customer information appropriately• Provide product information appropriately• Augment compliance awareness (compliance education)• Develop personnel with competence in quality (quality education)• Respond to environmental laws and regulations, such as RoHS/
REACH/POPs

Percentage of people undergoing health checkups: 93.7%

Measures to address long working hours

Fair and appropriate information
disclosure

Tokyo Seimitsuʼs Responsibilities

Total participants: 172

Realization of comfortable workplaceenvironments where people can play active
long-term roles-Promote solution-oriented social

Customers

Accidents resulting in leave: 1

Skills/special education training
Healthy company declaration

proactive IR activities

size the “WIN-WIN” and social

Main outcome of activities

Zero accidents resulting in leave

Mental and physical health

Strive for transparent andBuild relationships that empha-

Initiatives/structures

Initiatives to Address Social Issues

Shareholders
and Investors

Employees

Initiatives to Address Environmental Issues

Employees

activities to contribute to the achieve-

Sustainability of the Tokyo Seimitsu GroupThe Tokyo Seimitsu Group believes that continuous, active, two-way communication with various stakeholders
is important in creating business value and social value while fulfilling our social responsibilities. By sharing information on real needs and issues through sincere communication with stakeholders, we seek to build strong anddeep relationships of trust and grow together.

Invitations to the Hachioji Plant

Support for career education programs

Visits to nearby schools

Job-specific career guidance subcommittee

SUSTAINABILITY REPORT 2023

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Stakeholder Engagement

Suppliers
Tokyo Seimitsuʼs Responsibilities

Major Means of Communication• Fair and equitable transactions• Safety, human rights, and environmental considerations in the
supply chain• Support for resolving CSR issues• Appropriate provision of information• Sustainability assessment (once a year)• Support through procurement activities (as needed)• Supplier CSR Guideline• Web-based system for suppliers• CSR seminar (once a year)• Commendations for suppliers (once a year)

Fiscal 2022 Major Results
Objectives

Initiatives/structures

Main outcome of activities

CSR surveys/check-ups

Sustainability assessment

Response rate: 94.6%

Entrenchment of CSR procurement

CSR Seminars

Conducted in September 2022

Strengthening of information sharing

Web-based system for suppliers

Request for investigation of nonconforming product use

Manufacturer’s responsibility

CSR training for employees

e-learning

Business Partnership Building Declaration
On February 1, 2023, Tokyo Seimitsu announced its Business Partnership Building Declaration in support of the aimsof the Council for Promoting Partnership Building for the Future*. We aim to build new partnerships by promoting
collaboration, co-existence, and co-prosperity with business partners in the supply chain and businesses seeking tocreate value.
*Council for Promoting Partnership Building for the Future: This council conducts activities to promote co-existence and co-prosperity for companies throughout the entire supply
chain and new cooperative relationships where size, affiliation, and other factors are irrelevant. Members include relevant cabinet ministers (from the Cabinet Office, METI, MHLW,
MAFF, and MLIT as well as the Deputy Chief Cabinet Secretary), Keidanren Chairman, NCCI Chairman, and Rengo Chairman.

Participation in Industry Groups
Semiconductor Equipment Association of Japan (SEAJ)International Organization for Standardization (ISO)Tokyo Seimitsu is a member of the Semiconductor Equipment Association ofJapan (SEAJ) and participates in the activities of the Service sub-committee
and Safety Training sub-committee of the Safety & Support Committee.
The Safety & Support aims to enhance the quality of maintenance services,
including for semiconductor manufacturing equipment, and achieve a zeroaccident rate among service personnel. In addition to creating and providing
various guidelines and checklists and conducting activities to promoting the
adoption of SEAJ recommended safety training as the industry standard, it
participates in the operation of the SEAJ China Travel and Movement Information Exchange site. It does so to support the overseas field activities ofmember companies as a member of the SEAJ China Business Promotion
Team.

The International Organization for Standardization (ISO) is responsible forstandardization in major industrial fields. As a representative of Japan toTC213, which deliberates and establishes standards for geometrical productspecifications (GPS) in the Technical Committee, Tokyo Seimitsu participates in working groups covering coordinate measuring machine standards,
roundness measuring machine standards, surface texture measuring instrument/filter standards, and measurement uncertainty standards. In particular,
as a project leader of international meetings to discuss specifications andstandards for roundness measuring machines and to revise calibration standards for surface texture measuring machines, we are promoting the international standardization of Japanese proposals.

https://www.seaj.or.jp/english/

ISO TC213
https://www.iso.org/committee/54924.html

The Japan Society for Precision Engineering

Japan Precision Measuring Instruments Manufacturers Association

The Japan Society for Precision Engineering is organized by experts in theirrespective fields to promote the sound development of precision engineering
technology and to conduct ongoing research on important issues. Tokyo
Seimitsu participates in the Expert Committee for Intelligent Nano-Measurement*1 and the Expert Committee for Convergence Engineering*2. Also, in
fiscal 2022, one of our employees was appointed to the society’s board,
where he will work to promote its activities.

To promote the precision measuring instruments industry in Japan, The
Japan Precision Measuring Instruments Manufacturers Association holds
comprehensive exhibitions concerning measurement and all related aspects,
promotes standardization that contributes to the improvement of technology
and quality, and holds seminars in collaboration with other organizations.
Hitoshi Yoshida, Chairman and CEO of Tokyo Seimitsu, has been the Chairman of this industrial association since fiscal 2020.
Members from our Company played a central role in the seminar on the useof precision measuring instruments at JIMTOF 2022, which was hosted by
the Japan Industrial Association of Measuring Instruments Manufacturers(JIMTOF), where they were involved in planning, preparation, and operations
on the day of the seminar.

*1 Expert Committee for Intelligent Nano-Measurement: An expert committee

on technological developments including intelligent data processing,traceability, and standardization*2 Expert Committee for Convergence Engineering: An expert committee on
new design and productive techniques that digitize object information from 3D
shape scanning technologies (industrial X-ray CT and 3D surface scanners)
and utilize that information in digital engineering systems (CAD, CAM, CAE)ENVIRONMENTAL
Initiatives to Address
Environmental Issues
18 Environmental Management
20 Climate Change
22 TCFD Response
24 Environmental Contribution through the Provision of
Products(Eco-products)
26 Resource Recycling and Waste Reduction
27 Water Resources
28 Chemical Substances Control

https://www.jpmia.gr.jp/

https://www.jspe.or.jp/wp_e/

16

SUSTAINABILITY REPORT 2023

SUSTAINABILITY REPORT 2023

17

Environmental Management▪ Environmental Management

Board ofDirectors

System Structure

President

Environment Management Committee

Basic Environmental Policy

Chairman of the Environmental Management Committee

Environmental Policy
1. We will resolutely drive environmental conservation activities by organizing anenvironmental management structure having "the Environmental Management Committee" as the top, in which all managers play the key role.
2. We will comply with environmental laws, ordinances, and agreements
as well as "the Environmental Policy" and establish voluntary goals tograpple with pollution prevention and environmental conservation.

5. We will conduct training programs for all employees to raise awarenessof environmental protection. Also, we will ask for the understanding andcooperation of suppliers in environmental conservation.

4. We will establish environmental objectives for the following items concerning the environmental impacts caused by business activities andimprove environmental performance by implementing continuous improvement and reviewing the activities by internal audit.

7. The environmental management system applies to the activities, products, services, and environmental conservation activities of the plants
relating to the business activities of Semiconductor Company and Metrology Company.

1) Effective use of natural resources by energy conservation, resource
conservation and reduction, and recycling of wastes.
2) Proper management of harmful substances, reduction in their use,
and the adoption of replacements.

8. This environmental policy is disclosed internally and externally.
Basic Environmental Philosophy, Basic Environmental Policy,
Environmental Policy
https://www.accretech.com/en/sustainability/esg/management.html

3) Prevention of the global warming through the emission control of thegreenhouse gas.

Since obtaining ISO 14001 certification in 1998, we have been promoting initiatives to address environmental issues through approaches that are in line with ISO 14001 policies. Through our products and business activities, we aim to reduce our electricity
usage and CO 2 emissions, promote resource conservation, control waste generation and total chemical substance emissions, andcontribute to the achievement of a sustainable society.
Eco-Products

Eco-Mindset

As a manufacturing company, morethan 99% of our CO2 emissions
come from the electricity used in ourfactories, and almost all of the environmental impact (water resources,
waste generation, etc.) that wecause is from factory operations.
Accordingly, we are promoting activities to reduce environmental impact
through our main “eco-factory” approach.

In addition to conducting an LCA (life cycle assessment)* as
a mandatory task during new product development screening, we also evaluate the environmental impact of conventional products. We have established “eco-products” asproducts that are developed, manufactured, and improved
according to LCAs and promote activities that reduce environmental impact through related to our products.

Tokyo Seimitsu has positioned “eco-mindset” as an
initiative to raise the environmental awareness of ouremployees. By actively providing opportunities for
employees to participate in social contribution activities in their daily lives and workplaces, such as the introduction of volunteer activities* in the training of new
employees, we contribute to society through ourbusiness activities and take action to solve issues.
"Adopt-A-Road Program" activities, Na* Hachiojikanuki Park cleanup activity, eco-partner agreements, etc.

18

SUSTAINABILITY REPORT 2023

Vice chairman of the Environmental
Management Committee

Person Responsible forEnvironmental Management

Person Responsible forEnvironmental Management
Environmental
Secretariat

Environmental
Secretariat
Environment Subcommittee

Environment Subcommittee

Individual divisions

Individual divisions

Dissemination of Legal and Environmental
Regulatory Information
Each Environmental Subcommittee, established as part of the
Semiconductor Company and Metrology Company, delivers
legal and environmental regulatory information* from the given
company Environmental Secretariat to members of the related
Environmental Subcommittee and explains key points. In addition, an environmental internal audit is conducted twice a year

to check the laws and regulations that divisions are required tofollow as well as level of compliance.

* Legal and Environmental Regulatory Information: Main types of legal
and environmental regulatory information handled by the Environment Subcommittee: Information on the Act on Confirmation, etc. of Release Amountsof Specific Chemical Substances in the Environment and Promotion of
Improvements to the Management Thereof, Act on Rationalizing Energy
Use, Poisonous and Deleterious Substances Control Act, Water Pollution
Prevention Act, REACH (Registration, Evaluation, Authorization and Restriction of Chemicals), the POPs (Persistent Organic Pollutants) regulations, andothers.

Implementation Plan and Environmental Management System
Programs based on legal requirements, our Environmental Policy, and stakeholder requirements.
In addition, while internal audits are conducted twice a year tocheck the management status of facilities and equipment, theEnvironment Management Committee confirms that environmental standards are being properly observed, and notifications and reports are appropriately performed.

The divisions affiliated with each Environmental Subcommittee
prepare an Environmental Objectives Implementation Plan thatspecifies the details of efforts, deadlines, and evaluation methods to achieve the environmental targets of the Semiconductor
Company and Metrology Company. Based on this plan, they
prepare Environmental Management System Programs thatprovide annual implementation plan and progress information.
The results of the activities based on the Environmental Management System Programs are reported every three months tothe heads of relevant divisions and persons responsible for environmental management. In fiscal 2022, we planned programsfor 69 items and reached our targets for 65 items, for an overall achievement rate of 94.2%.

Environmental Management System Programs—
Fiscal 2022 Activities
Targets: Items Related to Environmental Impact as Defined in
Section 4 of the Environmental Policy
1. Energy conservation (mainly power consumption)
2. Conservation of resources (mainly water and air)
3. Reduction and recycling of waste
4. Reduction of use and finding alternatives for hazardous
chemical substances
5. Reduction in greenhouse gas emissions (mainly power consumption and emissions from company vehicles)▪ Information on the 65 Programs that Achieved Targets for Fiscal 2022

Key initiatives

Number Items Related to EnvironmentalofImpact as Defined in Section 4
programs of the Environmental Policy

Key initiatives

Number Items Related to EnvironmentalofImpact as Defined in Section 4
programs of the Environmental Policy

Power reduced due to equipment
efficiencies

29

1

Reduction of hazardous chemical
substances

3

4

Reduction in power consumed
during processing and production

3

1

Reduction of CO2 through gas
substitution

1

5

Power reduction due to improvement
proposals and small-group activities

7

1

Reduction in waste

2

3

1

5

13

2,3,5

Reduction in water and air
consumption during production

4

2

Reduction in CO2 emitted during
use of company vehicles

Reduction in use of organic solvents

2

4

OthersSUSTAINABILITY REPORT 2023

Data/Site Report

Environmental Management System
The Company has created an Environmental Management
System (EMS) which conforms to ISO 14001. Each Environmental Subcommittee, established as part of the Semiconductor Company and Metrology Company, conducts an annual
survey of environmental aspects of the organization, products,
services, and facilities in accordance with the Environmental
Monitoring and Measurement Management Regulations. We
evaluate their environmental impacts and prepare, approve, implement, evaluate, and report on our Environmental Objectives

Vice chairman of the Environmental
Management Committee

Governance

Eco-Factory

accordance with calculation standards for converting
emissions to CO2 at every stage from material andproduct manufacturing to disposal

Metrology Company

Semiconductor Company

Environmental Objectives Implementation Plan/Environmental Management System Programs

Three Approaches to Environmental Management* Life Cycle Assessment (LCA): Assessment held in

9 Lead Environmental
Auditors(Semiconductor Company)/
18 Lead Environmental
Auditors(Metrology Company),
18 Environmental Auditors(Semiconductor Company)/
6 Environmental Auditors(Metrology Company)

Sustainability Department

Initiatives to Address Social Issues

3. We will strive to develop and improve environmentally responsible products (products contributing to energy and resource conservation, products that do not use harmful substances).

6. We will make efforts for environmental conservation activities, including
use of sustainable resources, mitigation of climate changes and conservation of biodiversity, through individual business operations, strive toachieve a better global environment, and contribute to the developmentof society.

Internal
Environmental
Audit Team

Environment Management Committee▪ Chairman: Executive Vice President and CFO▪ Committee Vice-Chairman: Plant Manager, Hachioji
Plant, Semiconductor Company and Plant Manager,
Tsuchiura Plant, Metrology Company▪ P ersons responsible for environmental management: Person responsible for environmental
management at the Semiconductor Company andpersons responsible for environmental management
at the Metrology Company

Initiatives to Address Environmental Issues

In all business activities, extending from manufacturing products such as semiconductor manufacturing equipment and precision measuring instruments
through the provision of services, everyone at Tokyo Seimitsu must always work with the consideration for "Is this action friendly for the earth?" The goal is to
reduce our impact on the earth's environment to the absolute minimum.

Sustainability of the Tokyo Seimitsu GroupThe Tokyo Seimitsu Group contributes to the realization of a sustainable society based on the Group’s Basic Environmental Philosophy, which is “Recognizing environmental conservation as an important theme common to all
humankind, Tokyo Seimitsu makes environmental conservation an integral element of all product development,
design, manufacturing and service activities.”

19

Climate Change

By fiscal 2025, reduce CO 2 emissions by 35% from 2018 levels
By fiscal 2030, reduce CO 2 emissions by 50% from 2018 levels■ CO2 Emissions

CO2 emissions production volume
intensity (Scope1 and Scope2)

FY2018FY2019FY2020

FY2021

FY2022

12,312 t-CO 2

11,982 t-CO 2

9,524 t-CO 2

8,191 t-CO 2

8,257 t-CO 2

0.160( t-CO 2 / million yen)

0.191
( t-CO 2 / million yen)

0.129
( t-CO 2 / million yen)

0.080
( t-CO 2 / million yen)

0.074
( t-CO 2 / million yen)Gas

21 t-CO 2

21 t-CO 2

42 t-CO 251 t-CO 2

54 t-CO 2

Fuel

65 t-CO 251 t-CO 2

33 t-CO 2

43 t-CO 2

45 t-CO 2

12,226 t-CO 2

11,910 t-CO 2

9,449 t-CO 2

8,097 t-CO 2

8,158 t-CO 2

Electricity* Scope1: Direct GHG emissions by the Company (emissions from fuel combustion, on-site power generation, and industrial processes)* Scope2: Indirect emissions resulting from the use of electricity and heat supplied by other companies (e.g. emissions associated with electricity purchasedfrom electric power companies)■ Eco-Factories (environmentally-friendly factories)

Objectives

Reduction of CO2 emissions

Result (FY2022)
8,257 t-CO 2(33% reduction compared to FY2018)

In order to respond to climate change, Tokyo Seimitsu is
working on the development of environmentally friendly products. In addition to conducting an LCA as a mandatory task
during new product development screening, we also evaluate
the environmental impact of conventional products. We have

Promotion of Global Warming Prevention (Toward a Carbon-Free Society)
Almost all the greenhouse gases emitted by the Company are from the CO 2 equivalent of electricity purchased and used in the operation of the Hachioji Plant and Tsuchiura Plant. As a global warming prevention measure, we are focusing on conserving electricity.

Specific Examples of CO2 Emission Reduction▪ Procurement of renewable electric power*▪ Switch to/introduction of low-carbon electricity/CO 2-freeelectricity*2 (Hachioji Plant and Tsuchiura Plant)▪ Installation/maintenance of solar power generation facilities(Hachioji Plant and Tsuchiura Plant)
1*12 Electricity generated from renewable energy sources* E lectricity that is generated without CO 2 being emitted. This refers toelectricity that is virtually CO 2-free, utilizing environmental value derived
from renewable energy sources that do not emit CO 2

Reduced energy use by 238 MWh
170%■ Eco-products (environmental contribution through products)

Objectives

Plans

Development ofEnvironmental impact assessenvironmentally friendly
ment based on LCA
products

ResultHigher throughput
Extended temperature range during
measurement
Reduced electricity consumption

Specific Examples of Efforts to Promote Energy
Conservation▪ Introduction/operation of high-efficiency machining centers▪ Replacement of wastewater treatment relay tank relay pumps(motor and pump sections) with energy-saving models▪ Replacement of pure water intermediate tank pumps withenergy-saving models▪ Upgrade of water chillers to make them more energy efficient▪ Upgrade of air conditioning equipment (Hachioji ACCT Tower)▪ Air conditioning optimization (Metrology Company inspection rooms)▪ Upgrade to equipment that generates less CO 2 emissions(approx. 50 million yen was spent on these upgrades)▪ Switch to LED lighting(Hachioji: ACCT Tower, Plant No. 3
and No. 5)>Air conditioning upgrade (Hachioji: ACCT Tower, Plant No. 1)▪ Expansion of HV/EV vehicle introduction and installation of
fuel-efficient tires

Management of Environmental Impact on the Atmosphere
The Company also manufactures freezers that use HFC* gases, for use in semiconductor manufacturing equipment. We properly
manage the refrigerant gas, discharging almost no gas to the outside. We are also switching to gas refrigerants that have low global
warming potentials.

Data/Site Report

For details on Life Cycle Assessment (LCA) during product development and specific productinformation, please refer to “Environmental Contribution through the Provision of Products” (P24)established “eco-products” as products that are developed,
manufactured, and improved according to LCAs. As a responsible manufacturing company, we contribute to the realizationof a decarbonized society.

Governance

Promotion of energy
conservation(reduction of electricity use)

Plans
35% reduction compared to FY2018 by FY2025
Year set: 2021
Period: FY2020 to FY2025
Benchmark emissions : 12,312 t-CO 2
Reduction target: 8,003 t-CO 2
140 MWh
Reduction through Environmental Management
System programs

and other work. We are striving to reduce the consumptionof electricity and water. Moreover, as the equipment has large
numbers of mechanical parts and many paper drawings areused for parts processing and assembly, we are working touse electronic data in processing and assembly to reduce theuse of paper. We are also striving to recycle metal processing
scrap and waste liquid from processing as much as possible.

Initiatives to Address Social Issues

Details

We are a machinery manufacturer that performs processingof precision parts in-house. Over 99% of the energy that we
consume consists of power for our production plants, and theamount of water that we use for cutting and processing is considerable as well. Production volume is increasing for productsthat process semiconductors using water, as is the volume
of water used for inspection, adjustment, test processing,

Eco-products (Environmental contribution through Products)

Fiscal 2022 Targets and Results

Total CO2 emissions(Scope1 and Scope2)

Eco-Factory (Environmentally-Friendly Factories)

Initiatives to Address Environmental Issues

CO2 Emission Reduction Targets

Sustainability of the Tokyo Seimitsu GroupFor many years, Tokyo Seimitsu has set its own targets and worked to conserve energy at its production sites, theHachioji and Tsuchiura plants. In order to achieve the reduction targets required of signatories to the Paris Agreement and the 2030 target for reducing greenhouse gas emissions set by the Japanese government on April 22, 2021,
we have set new medium- and long-term reduction targets for CO2 emissions for energy used and consumed at bothplants (Scope1 and Scope2), including for business activities, production activities, and research and development.
To achieve these targets, we are working to decrease electricity consumption by using electricity derived from renewable and low-carbon sources, and switching to high-efficiency equipment. Results are inspected and evaluated.

* HFC:Hydrofluorocarbons (HFCs) do not contain chlorine atoms that deplete the ozone layer and are therefore used as chlorofluorocarbon substitutes in air
conditioners and other coolants.

■ Atmospheric gas discharge

Other Gases
CH4
N2O
HFC
PFC
SF6

FY2018
0.0
0.0
9.4
0.0
0.0

Unit: t-CO 2
FY2019
0.0
0.0
2.0
0.0
0.0

FY2020
0.0
0.0
11.0
0.0
0.0

FY2021
0.0
0.0
0.0
0.0
0.0

FY2022
0.0
0.0
0.0
0.0
0.0

Scope: Hachioji Plant, Tsuchiura Plant

20

SUSTAINABILITY REPORT 2023

SUSTAINABILITY REPORT 2023

21

TCFD Response

https://www.accretech.com/en/sustainability/esg/tcfd.html▪ Summarization of information, reports to the Board of Directors, etc.
▪ Matters related to various reports and information disclosure▪ Convening and operating a sustainability promotion council

About projects for responding to TCFD

Opportunities■ Governance Structure

Board ofDirectors

Sustainability
Committee

Risk Management
Committee

4℃

Executive Management Meeting

Risks
Opportunities

Carbon pricing

Legend Financial Impact: ▲▲▲ Large, ▲▲ Moderate, ▲ Small
TCFD Response
Project

to the board of directors for judgment. Such information is also
shared with the Risk Management Committee, which is responsible for business risk management, to ensure that appropriate measures are implemented on a company-wide basis.

SUSTAINABILITY REPORT 2023▲▲

Mediumterm▲▲

Medium
term

▲

▲▲▲
▲

Mediumterm
Medium
term
Long
term

▲

Short
term

▲▲

Short
term

▲▲▲

Mediumterm▲▲

Mediumterm

Emergence Timing: Short term 2022-2024, Medium term 2025-2029, Long term 2030-

By 2030, we aim to reduce our CO 2 emissions by 50% compared with fiscal 2018 levels.
At time same time, it is expected that the demand for semiconductors will continue to expand in the future. To meetthese needs, the Tokyo Seimitsu Group is planning to expand
production capacity. Although energy consumption is thus expected to increase, we will promote decarbonization efforts by
utilizing low-carbon energy sources, including renewable ener-gy, in addition to mounting energy conservation efforts.

Toward the Reduction of Greenhouse Gas Emissions
Since the majority of greenhouse gases (GHG) emitted by theCompany are from the CO 2 equivalent of electricity purchased
to operate its plants. As a global warming prevention measure,
we are focusing on activities for conserving electricity.

■ Result CO2 Emissions and Targets for FY2023

that a 2℃ scenario response is insufficient, so we conducted
our analysis with a 1.5℃ scenario in mind. However, as a 1.5℃
scenario response would dilute our awareness of physicalrisks, we also assumed a business environment under the 4℃
scenario, the level to which temperatures would rise if current
economic activity were to continue.

Emissions (t-CO2)
Electric power used (MWh)CO2 emissions
production volume intensity (t-CO 2/million yen)Previous five-year plan
FY2018FY201912,312
11,982
25,76525,448FY20209,524
28,843New five-year plan*
FY2021
FY2022
8,191
8,257
29,83529,546

0.160

0.129

0.080

0.191

0.074

FY2023 (plan)
10,90035,580

Data/Site Report

22

Mediumterm

Indicators and Goals

Strategy
We conducted a Scope1 and Scope2 emissions analysis ofTokyo Seimitsu’s domestic businesses. We will continue tomonitor the GHG emissions of Group companies in Japan andoverseas, and plan to respond accordingly. In the future, wewill investigate the Scope3 emissions, including those of suppliers.
Since future projections are highly uncertain and difficult toanalyze, we examined GHG emissions based on multiple scenarios. International public opinion is moving toward the view▲▲▲

GovernanceRisk Management

EmerFinancial
gence
ImpactTimingAssumed Business Environment

Initiatives to Address Social Issues

These projects are led by the Sustainability Committee andattended by the related personnel of the production, sales, andmanagement departments. Members of the projects researchand discuss climate change and submit reports to the Committee periodically.

The Sustainability Committee is responsible for arranging, formulating, planning, and implementing sustainability activities,
specifically promoting the following activities.
▪ F ormulation of basic policy, operational framework, andgoals as well as monitoring of information▪ Establishing and managing plans and projects

The projects for responding to TCFD research and discuss
climate change-related risks (transitional/physical). They submit
reports to the Sustainability Committee on a regular basis andwhenever there is an urgent need to do so. Risks considered
to affect business are relayed immediately from the committee

Risks

Event

▪Rises in costs of materials, equipment, energy, transportation, etc. due to theintroduction of a carbon tax▪Restrictions on product exports due to the introduction of a carbon border tax▪Decrease in demand for the conventional business and products (measuring
Use of EVs
instruments for internal-combustion engine parts)
Markets▪Decarbonization resulting in surges in material costs, difficulty in procurement, andDecarbonization
extra costs being incurred to procure alternative products
premiums▪Difficulty in procurement of non-fossil energy and rise in procurement costs
Delayed decarbonization ▪Delays in climate change action and other ESG efforts affecting financing and
Reputation
effortsbusiness relationships
Use of Evs▪Growing demand for measurement of new EV materials and parts Increased use
Electrification/digitalization of semiconductors leading to increased production capacity
Markets▪Growing demand for measuring instruments due to expanding renewable energy
Growing renewableenergy markets
markets▪Energy-saving measures in factories (equipment and processes) and recycling ofResource
efficiency Production equipment
resources leading to increase productivity and meet the customer need forenergydecarbonization▪Enhance the product reputation and competitiveness on the market by reducing
environmental impact from the LCA perspective
Products
Low-carbon products
servicesand services▪Meet the customer need for lighter products (increase demand for measuring
products)▪Increase in risk control (BCP) costs
PhysicalExtreme weather events ▪Disaster-caused physical damage and recover costs(acute)▪Disaster-caused business operation suspension (of the company or suppliers)▪Stable supply of products and services during disasters to help customers
Resilience Disaster response
maintain their production systems
Regulations

1.5℃

Sustainability Committee

Risks
Opportunities

Initiatives to Address Environmental Issues

Governance
The Tokyo Seimitsu Group considers climate change a major
business threat.
The Sustainability Committee discusses ways to control risks
and opportunities related to climate change issues and reports
results of the discussions to the board of directors on a regularbasis. The Sustainability Committee is chaired by the Representative Director & CEO. Its activities are reported to the semiannual Sustainability Promotion Meetings, and the report is submitted
to the Board of Directors if deemed necessary by the Chairman.
The board members collect information and deepen theirknowledge through various opportunities and means to grasp
the ever-shifting climate change situation. The Board of Directors share the issues of risks and opportunities related
to climate change, discuss goal management and problem
solving, and plan to outline our medium- and long-term GHG(Greenhouse Gas) reduction policies through TCFD Response
Projects in the future.

In addition, based on the results of the analysis of environmental risks and opportunities, we decided on the following actions to be takenin the medium- and long-term bases.
1. Organize and address the overall picture of climate change (including internal management system and disclosure of Scope1 andScope2 emissions reductions)
2. L
 CA Scope3 (including coordination with customers and suppliers)
3. Exploration of new business areas
4. B
 CP enhancement, starting with our response to climate change
Scenario* See the latest information on our Website

Sustainability of the Tokyo Seimitsu GroupIn March 2022, Tokyo Seimitsu expressed its support of the recommendations of the Task Force on Climate-related Financial Disclosures. We consider rising temperatures, increasingly severe natural disasters, and other phenomena caused by climate change to pose a major risk to our business as well. On the other hand, we believethat addressing climate change will lead to increased corporate resilience and product competitiveness, as wellas provide opportunities for business expansion. We will analyze the risks and opportunities that climate change
poses to our business, share and work to unfold issues, and promote the disclosure of climate-related financial
information based on the TCFD framework.

-

Organizations covered: Tokyo Seimitsu Co., Ltd. (non-consolidated basis)* In 2021, we revised our reduction target and extended the period by one year.

* Reference scenarios

1.5℃ scenario : [IEA] NZE, 1.5℃ special report [IPCC] SSP1-1.9
4℃ scenario : [IEA] STEPS [IPCC] SSP2-4.5, SSP3 - 7.0

SUSTAINABILITY REPORT 2023

23

Environmental Contribution through the Provision of
Products (Eco-products)

New Product Development Screening
stipulate principles to be considered during development anddesign, and include the examination of environmental performance in terms of compactness and minimization of the number of parts, as well as environmental measures.
■ TES New Product Development Screening Rule

Creating New Value through the Synergy of Semiconductors and Metrology
Tokyo Seimitsu is the only manufacturer of semiconductor
manufacturing equipment that possesses measurement technologies. As new value creation unique to our company, weare developing semiconductor manufacturing equipment models with built-in measurement instruments. Equipped with Optscope, a 3D white light interferometer microscope that measures surface properties, it improves the detection accuracy of
shape and surface properties, contributing to improved quality
and productivity.

■ Semiconductor Manufacturing Equipment with Built-in

Measurement InstrumentFormeasurementof nano levelsurface
textureNon-contact 3D surface
texture measuring instrument

Opt-scopeWhite light interferometer
microscope

Development Principles■ New Product Development Screening System<Principles for product development>

https://www.accretech.com/en/company/management.html

Product Development Screening Committee

Design Principles
Secretariat: Management
Support Department
Development Design Screening

1st screening ▶ 2nd screening ▶ 3rd screening
Screening content: Product requirements, specifications, planning,
design, procurement, inspection standards, reliability, performance, etc.

AD3000T-PLUS<Those related to the environment out of 10 principles>▪ Compactness ▪ Minimum number of parts▪ Environmentally responsive‧‧‧‧‧‧‧‧Reduce environment impact acrossthe life cycle▪ Energy-saving design‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧‧ Life Cycle Assessment (LCA)▪ Resource-saving design▪ Avoid or reduce the use of hazardous chemical substances▪ Reduction of chemical, emissions measures▪ Consideration toward product disposal* TES: The Tokyo Seimitsu Engineering Standard (TES) is a set of binding and enforceable regulations, standards, norms, criteria, and procedures that apply todevelopment, design, manufacturing, production control, quality control, services, and environmental management related to production activities as defined in
the Tokyo Seimitsu Regulations (TMR)

LCA during Product Development
LCA targets are set at the time of design, and LCA performance is calculated and evaluated by evaluation organizations
to determine the results. By also carrying out LCA for products
currently in production, we make improvements to our conventional products and conduct comparative evaluations of thesewith in development and new products.

Supporting the Manufacture of Power Semiconductors, Devices That Contribute to Decarbonization
Power semiconductors are important devices used in power converters. They are essential devices for the realization of a decarbonized society as they can reduce electricity consumption and use energy efficiently, and are used in various electronic devices
including electric vehicles, railcars, refrigerators, air conditioners, wind power generation equipment, and renewable energy-related
equipment.
The Group has strengthened its product lineup to support next-generation power semiconductors that can withstand high voltages
and high currents, lose little energy, and can be miniaturized.

Lineup of Products That Support Next-Generation Power Semiconductor Manufacturing
Options to support high voltages and high currents for SiC/GaN
production are available
Capable of grinding hard, brittle materials such as SiC/GaN substrates

High rigid
grinders:
HRG200X/300

Probing Machines

Environmentally Friendly Products

Semiconductor Manufacturing Equipment:

Precision Measuring Instrument:

Reducing environmental impact by increasing throughput

Reduced environmental impact* by proving wide
range of guaranteed temperature accuracy* Environmental impact caused by precision guaranteed overa wide temperature range: Generally, measuring devices areguaranteed to be accurate at an environment of 20℃, but by
setting this to a wide range of guaranteed temperature accuracy, the power required for air conditioning can be reduced

Reduced environmental impact byinstalling power-saving PC

Measuring Instruments That Support Manufacturing Activities Aimed at Decarbonization
In order to efficiently transmit power with precision in automobiles, airplanes, etc., components must be manufactured
as designed and as specified. By measuring and managing
the dimensions, shape, roundness, and surface roughness ofparts, manufacturing is progressing toward the realization of
decarbonization.
Based on our basic philosophy of "No Measurement, no
Manufacturing," we are contributing to the improvement of
performance and fuel efficiency in the automobile and aircraft
industries through our measurement technologies.

XYZAX AXCEL Series
Extensive measurement applications
Contributes to the improvement of
performance and fuel efficiency inthe automobile and aircraft industries
through measurement

Data/Site Report

Wafer flaking time
reduced byapproximately 50%(compared to the
PG3000RMX)SUSTAINABILITY REPORT 2023

CMP (Chemical Mechanical
Polishing) devices

Dicing blade

Due to the nature of production equipment, products of Tokyo Seimitsu offer many hours of operation and have long service lives.
Consequently, when converted into CO 2 emissions, power consumption from usage of products accounts for a good deal of total
emissions over the life cycle. This has prompted us to focus on developing and designing products for reducing environmental impact during manufacturing activities conducted by our customers.

24

High-pressure, high-speed polishing capabilities improve
the polishing rate of SiC wafers
Blades available for SiC

Governance

The Company recognizes its responsibility for the environmental impacts of its products over their entire life cycles. In 2016,
the Technical Working Group of the CSR Committee unified
the calculation standards for converting emissions to CO 2 atevery stage from product manufacturing to disposal LCA. The
CO 2 emissions derived through this method are set as essential evaluation items in new product development screening.

Fully Automatic Dicing Machine

Initiatives to Address Social Issues▶ 4th screening ▶ 5th screening

Lot processing time reduced
by approximately 20%(compared to the UF3000EX)

Initiatives to Address Environmental Issues

We screen the environmental performance of new products
based on our own internal regulations (TES *), and work todevelop environmentally friendly products. In accordance with
the new product development screening rules, we set up a
product development screening committee and conduct deliberations for each product planning theme. The screening rules

Sustainability of the Tokyo Seimitsu Group

Going forward, we believe it is our role to continue being a responsible manufacturing company that provides
safe, high-quality, high-performance, and environmentally-friendly products.

▪The photo is of
Opt-BLISKSUSTAINABILITY REPORT 2023

25

Water Resources

Various resources are used for the products and business activities of the Tokyo Seimitsu Group. In order to contribute to the formation of a sustainable recycling-oriented society, we have declared in our Environmental Policythat we will make effective use of all resources and work on resource saving, waste reduction, and recycling.

Water is a valuable resource that is directly linked to people's lives and livelihoods. Since the Hachioji Plant,
which manufactures semiconductor manufacturing equipment, uses a large amount of water (pure water), we areworking to conserve water resources by reducing water consumption and promoting water recycling.

Eco-Factory

Eco-Factory■ Fiscal 2022 Targets and Results

Objectives

Promotion of resource
conservation(Paper procurement volume
production volume intensity
reduction)

Fiscal(2022)
Recycling rate
: 99.0%Total emissions: 1,071 t
Amount reused as resources : 1,061 t
Final disposal amount:
10 t

Main deleted contents
Cardboard : Reduced by 88,549 kg
Bubble wrap : Reduced by 13,542 kg
Wood scraps: Reduced by 9,920 kg

0.310 kg/million yen(30% reduction compared to
FY2019)Waste Reduction and Reuse of Waste as Resources
Plant is recycled, by means including thermal recycling. We arealso working to increase the recycling rate at the Tsuchiura Plant
by switching to a vendor that treats liquid waste for recycling.

In order to reduce our use of paper, we are creating an environment in which work can be performed during every process within thecompany using electronic data.

Initiatives for Creating a Paperless Supply Chain
We have reduced paper distribution through blueprint lending.
In fiscal 2022, we lent blueprints for 721 items, eliminating theneed to print and issue documents that would have weighed
2,595 kgComprehensive Management System for
Multifunction Machines and Printers
In order to reduce costs and improve security, we plan to introduce a comprehensive management system that consolidates
the operation and management of multifunction machines
and laser printers at all Group companies in Japan. Managing
multifunction machines will make it possible to track printing
volumes on an individual basis, leading to proactive reductions
in paper consumption and TCO* (Total Cost of Ownership).

* TCO: The total of all costs associated with the purchase and maintenanceof software and hardware required for a company to introduce an IT
systemPlans
5% reduction compared to FY2019 by FY2024
Year set: 2020Period: FY2020 to FY2024
Benchmark emissions : 2.74 m³/million yen
Reduction target: 2.60 m³/million yen

Result (FY2022)
1.48 m3/million yen(46% reduction compared to
FY2019)Reduction of Water Consumption and Water Recycling
All of the water we use is provided using city water (surface
water) and groundwater. In fiscal 2022, we used 164,150 m3 ofwater. At the Hachioji Plant in particular, wastewater volumes
are increasing as the production volume of semiconductor

manufacturing equipment that use a large amount of water(pure water) increases. As a result, a portion of the wastewater
is collected and filtered to promote water recycling as raw water to serve as pure water.

■ Water Usage

FY2018157,375

FY2019171,706

FY2020169,873

FY2021
163,662

FY2022
164,150

2.05

2.74

2.29

1.61

1.48

Locations covered: Hachioji Plant and Tsuchiura Plant■ Wastewater Recycling Rate* from Pure Water Production Facilities

FY201916.3%

FY202017.2%

FY2021
17.2%

FY2022
17.6%

Locations covered: Hachioji Plant* Wastewater recycling rate: Amount recycled/amount used (= raw water input + amount recycled)

Water Risk Assessment
The areas around the Hachioji Plant and Tsuchiura Plant are in
the Low-Medium class of water stress according to the Aqueduct assessment tools of the World Resources Institute (WRI).
We will continue to regularly assess the presence or absence

GovernanceIn response to COVID-19, there has been an increase in remote-based dialogue, leading to the widespread provisionof various disclosure materials in digital format. Although thenumber of direct dialogues has been increasing since fiscal
2022, from the perspective of sustainability, we continue toprovide materials in digital format as much as possible.

Reduction in water consumption(Water consumption production volume
intensity reduction)

Amount of water usage (m³)
Water usage production volume intensity(m3/million yen)

Reduction of Resource (Paper) Use

Spreading Information about Our Public Relations
Activities and IR Initiatives in Digital Formats Without Using Paper

Objectives

Initiatives to Address Social Issues

In order to reduce waste, we are implementing various initiatives,
such as replacing cardboard boxes for packaging delivered parts
with reusable plastic boxes, and having pick up wooden pallets
picked up by shipping companies. All waste from the Hachioji■ Fiscal 2022 Targets and Results

Initiatives to Address Environmental Issues

Reduction of waste
emissions, reuse as
resources

Plans
Recycling rate of 95% or higher by FY2024
Year set : 2020
Period : FY2020 to FY2024
Target : 95% or higher
5% reduction compared to FY2019 by FY2024
Year set: 2020Period: FY2020 to FY2024
Benchmark emissions : 0.443 kg/million yen
Reduction target: 0.421 kg/million yen

Sustainability of the Tokyo Seimitsu GroupResource Recycling and Waste Reductionof water risks in conjunction with the use of municipal hazard
maps and take appropriate measures when manufacturing
sites or raw material suppliers with high water risks are identified.

Water Quality Standards■ Water Quality Standards

FY2019FY2020

FY2021

FY2022

BOD ( t )Below 3.55

Below 2.75

Below 1.87

Below 2.76

Nitrogen content ( t )Below 1.53

Below 1.31

Below 1.34

Below 1.44

Iodine consumption ( t )Below 0.71

Below 0.71

Below 0.82

Below 0.81

Suspended solids ( t )Below 5.87

Below 5.49

Below 3.21

Below 3.78

n-Hexane extract ( t )Below 0.13

Below 0.02

Below 0.02

Below 0.05

Phosphorus content ( t )Below 0.09

Below 0.06

Below 0.06

Below 0.07

Data/Site Report

Since all of our wastewater is general sewage, none of it isdischarged into ocean waters or rivers. We thoroughly conduct
wastewater management at each factory to preserve the water
environment.

Locations covered: Hachioji Plant

26

SUSTAINABILITY REPORT 2023

SUSTAINABILITY REPORT 2023

27

Chemical Substances Control

With regard to the chemical substances, the Tokyo Seimitsu Group uses and that are contained in component
materials, the Group complies with the laws and regulations of Japan and of the regions to which it exports. For
chemical substances that are not regulated, we perform management based on voluntary standards to minimize
impacts on people and the environment.

Eco-Factory
substances. In fiscal 2022, we reduced the number of chemical substances by 45 compared to the reduction target of 10
substances.
When considering the purchase of industrial chemicals, we
conduct a chemical substance risk assessment to check forthe presence of environmental pollutants (organic solvents,
specified chemical substances, hazardous materials, etc.). In
fiscal 2022, 76 chemical substance risk assessments wereconducted for newly adopted chemicals and to review chemicals already in use.

Chemical Substances Control Based on VoluntaryStandards
In our internal regulations, we stipulate substances with the potential to pollute the environment, and mandate notification to
the person responsible for environmental management whenhandling such substances. In addition to keeping track of theamount of each substance handled, storage location, maximum storage volume, etc., we have SDSs* and emergency response tools, conduct periodic drills to prepare for emergency
situations, and are promoting the use of non-toxic or low-toxic
alternatives to organic solvents and other hazardous chemical* Safety data sheets (SDSs) provide information on the hazards, toxicity,
storage, disposal methods, and other information on the handling ofchemical substances.

Specified Chemical Substance Control (PRTR)
We are promoting the reduction and substitution of chemical substances in accordance with the PRTR Act, Ordinance on Prevention of Organic Solvent Poisoning, and the Poisonous and Deleterious Substances Control Act. Of chemical substances that we
handle, we have submitted notifications for two substances that exceed standard amounts for substances specified by the PRTR*
Act and five chemical substances to be appropriately controlled according to the Tokyo Metropolitan Environmental Security Ordinance.

* The Pollutant Release and Transfer Register (PRTR) is a system for providing notification of the release and transfer of pollutants. It is a system for identifying,compiling, and publicly announcing the sources of hazardous chemicals and the amounts released into the environment.

■ Amounts of Pollutants Subject to the PRTR Act Released

FY2018(in tons)

FY2019FY2020

FY2021

FY2022

Amount released into the atmosphere

0.0

0.0

0.0

0.0

0.0

Amount released into bodies of water
Amount transferred as waste

0.0
8.3

0.0
11.2

0.0
9.4

0.0
11.1

0.0
11.0

SOCIAL
Initiatives to Address Social Issues
30 Respect for Human Rights
32 Quality
34 Semiconductor Manufacturing Equipment BusinessSupport Quality
35 Precision Measuring Instrument BusinessSupport Quality
36 Supply Chain Management
38 Occupational Health and Safety
42 Health Management
44 Diversity & Inclusion
45 Work-Life Balance
46 Human Resource Development
48 Social Contribution

Scope: Hachioji Plant, Tsuchiura Plant

Control of Chemical Substances Contained in Products
We conduct briefing sessions for suppliers to request strict
control and reporting related to chemical substances containedin the parts we procure. So far, over 400 suppliers have participated. In addition, we have conducted cloud-based surveys
for suppliers on the RoHS Directive, REACH, and other topics.

Compliance with RoHS Directive and Other Environmental Laws and Regulations
For the Metrology Company products, we have investigatedsix substances of the RoHS Directive and the four phthalic acids added in 2021, determining that 100% of our products arecompliant. While Semiconductor Company products are ex-

28

SUSTAINABILITY REPORT 2023

empt from the RoHS Directive as large-scale stationary industrial equipment, we established a RoHS Analysis Room in fiscal
2018 to analyze chemical substances contained in procured
parts.
Since July 2020, we have made all our products comply with
the TSCA-PBT*2 regulations, in addition to the PFOA*1 regulations that were added to the POPs regulations. We export
100% compliant products to areas where the regulations are
enforced.

*1 PFOA: Perfluorooctanoic acid (PFOA) is a type of organofluorine compound that has been identified as a carcinogen*2 TSCA-PBT: A persistent, highly accumulative, toxic substance as definedby the US Toxic Substances Control Act (TSCA).

SUSTAINABILITY REPORT 2023

29

Respect for Human Rights
Sustainability of the Tokyo Seimitsu GroupThe Tokyo Seimitsu Group established the Tokyo Seimitsu Group Human Rights Policy on October 3, 2022 withthe aim of realizing sustainable growth of our business and organization and a sustainable society by striving tocorrectly understand and recognize the laws, regulations, cultures, religions, and values of the countries and regions in which we operate.

System for Promoting Human Rights
As part of our initiatives for respecting human rights, we havelaunched the Human Rights Activity Project, which consists ofmembers from the Human Resources Department, Management Support Department, Production Control Department,

and General Affairs Department. We will address human rights
across the board to involve all of our Group companies, suppliers, and local communities.

Tokyo Seimitsu Group Human Rights Policy
6. R espect for freedom of association and right to collective bargaining

The Tokyo Seimitsu Group respects the human rights of all the people
belonging to all its stakeholders, including socially vulnerable people,
without regard for the attributes of individuals such as gender and nationality. We also promote the creation of safe, healthy, and rewarding workplaces where each member of our diverse workforce can demonstrate
their capabilities to the utmost.

The Tokyo Seimitsu Group respects rights of its employees, including, but
not limited to, freedom of association and right to collective bargaining,as well as other civil and political rights.

2. Support and respect for international human rights norms;
compliance with local labor laws and regulations

3. Scope
The Policy shall apply to all executives and employees of the Tokyo Seimitsu Group. The Tokyo Seimitsu Group will actively require its business
partners and other stakeholders in its supply chain, as well as other business associates, to understand and cooperate with the Policy.

4. Prohibition of child labor and forced labor
The Tokyo Seimitsu Group prohibits the use of child and forced labor in
all aspects of its business activities. We will also actively require our business partners and other stakeholders to understand and cooperate withthe prohibition of child and forced labor.

The Tokyo Seimitsu Group prohibits its executives and employees fromdiscriminating against anyone based on his/her gender, age, nationality,
ethnicity, race, mental or physical disability, sexual orientation, cultural,religious, ideological or political beliefs, origins, family background, etc.,
respects the personality and individuality of each individual, and embraces diversity. We will also actively require our business partners and otherstakeholders to understand and cooperate with the prohibition of discrimination.

The Tokyo Seimitsu Group prohibits its executives and employees frombehaving in a way that would offend the dignity of an individual or ignore
the personality of an individual through such actions as harassment, slander, jokes, sexual advances, etc. based on gender, job, status, etc. (i.e.,
sexual harassment, workplace bullying, maternity harassment, etc.) andfrom engaging in any other form of harassment.

8. Human rights due diligence and relief efforts
The Tokyo Seimitsu Group protects the human rights of its stakeholders
through a mechanism of human rights due diligence which aims to identify, analyze, assess, prevent, and rectify adverse impacts on human rights,
thereby promoting sustainable corporate activities.
Should it be discovered that the Tokyo Seimitsu Group has caused, or
was involved in, any adverse impact on human rights, it will take appropriate action to rectify and remedy the adverse impact.

in accordance with the Responsible Business Alliance (RBA)
Code of Conduct and the Self-Assessment Questionnaire(SAQ). In the future, we will analyze the results of the survey
and work toward taking corrective actions, and plan to conduct a similar survey of major suppliers from fiscal 2023.

Human Rights Education and Training
We provide education and training on respecting human rights
so that each and every employee understands and practices
the Tokyo Seimitsu Group Human Rights Policy. In fiscal 2022,

we conducted e-learning for employees of five domestic Group
companies and conducted Tokyo Seimitsu Group Human
Rights Policy Workshops at 23 overseas Group companies.

Consideration of Human Rights and Compliance with Labor-related Laws and Regulations
The ACCRETECH Group Code of Conduct addresses matters
including compliance with laws and social norms related tolabor standards, occupational safety and health, and the prohibition of acts that infringe on human rights. e-learning related
to the ACCRETECH Group Code of Conduct is conducted ona regular basis.

The Company has a labor union whose collective bargaining
rights are guaranteed by a collective bargaining agreement,
and elected employee representatives are working directly withmanagement to improve the workplace environment throughdiscussions and consultations. We have confirmed that legal
working hours and legal minimum wages are being observed.

9. Education on human rights
To ensure that the Policy is effectively implemented throughout its business activities, the Tokyo Seimitsu Group makes this Policy known to allof its business partners and other stakeholders, continuously provides
appropriate education to all of its executives and employees, and continuously strives to raise their awareness of human rights.

Governance

5. Prohibition of discrimination and acceptance of diversity

7. Prohibition of harassment

Based on the Tokyo Seimitsu Group Human Rights Policy, theCompany started human rights due diligence initiatives in fiscal
2022 to identify, prevent, and correct risks to human rights
posed by the Group’s business activities. In fiscal 2022, we
conducted a status survey of Tokyo Seimitsu Co., Ltd., five domestic Group companies, and 23 overseas Group companies

Initiatives to Address Social Issues

The Tokyo Seimitsu Group supports and respects the internationallyrecognized "International Bill of Human Rights," "the International Labor
Organization (ILO) Declaration on Fundamental Principles and Rights at
Work," which sets forth core labor standards, and "the UN Guiding Principles on Business and Human Rights (UNGPs)." We will commit ourselves
to a respect for human rights. We also fully comply with all labor-related
laws in the regions in which we operate, respect the basic rights of workers, and do not infringe on them. Should there be any inconsistencies
between the laws and regulations of a given country or region and internationally recognized human rights, the Tokyo Seimitsu Group will seek
ways to respect international human rights principles while complying
with local laws.

The Tokyo Seimitsu Co., Ltd. and its domestic affiliates with organized labor unions conclude labor agreements with their respective labor unions
and respect each other’s positions to establish orderly labor-management
relationships and appropriate working conditions, to maintain a good relationship between both sides through faithful compliance and performanceof the agreements. Those companies shall discuss managerial issues andlabor-management issues at the labor-management conferences held between management and labor union officers to remedy any such issues.

Human Rights Due Diligence
Initiatives to Address Environmental Issues

1. Basic views on human rights

10. Information disclosure and dialog
The Tokyo Seimitsu Group publicizes its commitment to respect humanrights on its website, in its sustainability report, and in other media.
We will continue to strengthen our commitment to a respect for humanrights, through obtaining external professional advice on the Policy andinitiatives based on it as necessary.

Data/Site Report30

SUSTAINABILITY REPORT 2023

SUSTAINABILITY REPORT 2023

31

Quality■ Provision of Stable and Reliable Product Quality and Prompt and Meticulous Support Quality

Quality policy/Quality targets

WIN-WIN RELATIONSHIPS CREATE THE WORLD'S NO.1 PRODUCTS

Quality Policy
1.	We comply with laws and regulations in products and production,and contribute to society by prioritizing meeting customer requirements.
2.	At the beginning of every fiscal year, each company reviews its quality targets (priority targets) for the previous year, and sets new quality
targets for the new year to enhance product quality.

5.	We seek to improve quality through total quality control (TQC).
6.	We seek to improve quality through partnerships with subcontractors.
8.	We incorporate safety, quality, and reliability in each production process to achieve stable supply.

10.	This quality policy is disclosed internally and externally.

Internal Quality Audits
The internal audit team conducts Internal Quality Audits twicea year at the Company. Certified auditors conduct audits inaccordance with the quality manual* under the direction of the
Quality Control Managers of the Hachioji and Tsuchiura Plants,
who report the audit results and the effectiveness of the Quality
Management System to the Quality Management Committee.

* Quality manual: A manual that defines the procedures for managing
Tokyo Seimitsu’s various products and services in accordance with the stipulations of the ISO 9001 standard■ Quality Control Structure
Board of Directors

Supplier Quality Audits
Suppliers who supply many of the parts and components
required for our products cooperate in the quality audits that
we conduct using our ISO 9001-compliant checklists. In fiscal
2022, supplier quality audits were conducted at 11 companies

PresidentInternal Quality Audit Team

Quality Management
Committee

Quality Oﬃcer

Semiconductor Company

Sustainability Department

Metrology Company

Oﬃcer in Charge of BusinessOﬃcer in Charge of Business

Quality Control Manager

Quality Control Manager

Quality Subcommittee
Individual divisions(cumulative total of 208 companies), and follow-up audits wereconducted for suppliers that did not comply with our quality
control standards and/or quality requirements.

Customer Satisfaction Surveys
To incorporate customer feedback into the improvement andenhancement of our products and services, we conduct customer satisfaction surveys to ascertain customer satisfaction
and strive to strengthen it. The percentage of satisfactory rat-

ings in the FY2022 customer satisfaction survey was 93.3%,
and we are analyzing factors and implementing countermeasures for items that we believe need improvement.
Data/Site Report

SUSTAINABILITY REPORT 2023

During the Internal Quality Audits performed in fiscal 2022, theauditors did not indicate that corrective actions needed to betaken.

Governance

32

Quality-related Education and Training

Initiatives to Address Social Issuesof management to achieve goals in response to the needs ofan organization’s customers and markets, through quality assurance for products and services. In line with the transition to
ISO 9001: 2015, we obtained the certification in June 2017

・Customer satisfaction surveys
・Management reviews
・Internal audits
・Quality Subcommittee and QC meetings
・Supplier performance surveys

We conduct e-learning training for our employees to deepen their understanding about ISO certification and raise their awareness ofquality.

Quality Control Structure* ISO 9001: An international standard concerning systems and mechanisms

Monitoring, measurement, analysis,
evaluation

9.	The quality management system applies to the activities, products,
and services of Semiconductor and Metrology Companies.

Customer satisfaction surveys
Target: Achieve a satisfaction rating of 94.8% or more by FY2025
Result: Percentage of satisfactory ratings in FY2022: 93.3%

The Quality Management Committee consists of eight members: One Quality Officer, two Officers in Charge of Business,
two Quality Control Managers, and three Sustainability Department members. The Quality Management Committee
meets twice a year to review the performance, effectiveness,
and appropriateness of the Quality Management System. The
Quality Officer reports to the Board of Directors and receives
instructions and supervision. In fiscal 2022, there were no
quality management issues that required corrective actions to
be taken.
Since obtaining ISO 9001* certification at the Hachioji andTsuchiura plants in 1994, we have established the Tokyo Seimitsu Quality Management System (QMS) and have been promoting quality improvement activities through the PDCA cycle
based on quality policy and quality targets.

・Instructions from management review
・Corrective action for non-conformities
・Continuous improvements

7.	We enhance customer support in business, technology, and services.

Target and Result

Quality Management Committee

Improvement

・Tokyo Seimitsu Engineering Standards (TES), resources,
competencies, education and training, legal information
・Creation of products and services
・Determination of requirements, design and development,
management of manufacturing and service provision (change
control) and release, defective product management
・Quality improvement activities
・Quality management system program execution
・Communication with suppliers

Initiatives to Address Environmental Issues

Basic Philosophy

PDCA
cycle

3.	We continuously improve the performance and effectiveness of ourquality management system.
4.	We develop user-friendly products by establishing partnerships withusers.

Support and operation

・Initiatives aimed at risk and opportunity
・Planning of quality management system(quality target implementation plan/quality management system program)Quality Policy
At both of our plants, we set quality targets and conduct quality control inline with the quality policy set by our Quality Officer, and work to improve
the quality of products and support.

Sustainability of the Tokyo Seimitsu GroupAs Tokyo Seimitsu Group products are incorporated into production equipment, we consider outstanding quality
as meaning the provision of stable and reliable product quality and prompt and meticulous support quality. In order to fulfill our responsibility to protect the social status and interests of our Group customers, we are promoting
initiatives to improve quality and service.

Quality Subcommittee
Individual divisions

SUSTAINABILITY REPORT 2023

33

Precision Measuring Instrument BusinessSupport Quality

The Semiconductor Company’s CE Department is responsible for maintaining and improving the quality and productivity of the Company’s semiconductor manufacturing equipment used in semiconductor manufacturing andprocessing processes around the world, from installation setup to maintenance and training support, as well as
supplying maintenance parts. In order to contribute to our customers’ profits and increase customer satisfaction
by providing high-performance products and high-quality support, we have established a global support structure
based on the teamwork of the entire CE Department.

Adopting the slogan “No Measurement, no Manufacturing,” the Precision Measuring Instrument Business provides support for creating our customers’ futures through our precision measuring technology based on the ideathat providing precision and reliability is the origin of manufacturing.

Support Structure

Support Structure
The Metrology Company has established Metrology Centers at four locations in Japan and has built a system capable of providing
technical support to customers while becoming closer to them.
For overseas customers, our overseas service team focuses on supporting nine overseas showrooms and engineer training.
■ Support Structure

Tsuchiura Metrology Center
Metrology Business
Development Div.

Customers

Service Division

CustomerEngineering
Dept.

Tokyo, Osaka, andKyushu Customer
Engineering Dept.

Products-specificteams in Japan

GSE Team

Products-specificteams overseas(Two locations: Hachioji and Kandatsu)

On-site response, Requests
feedback
Technical
adviceCustomer engineer
Sales
proposals

Follow-up

Technical
On-site response, Information proposals
feedback
sharing

Manager in Charge of Products

Customers

Technology
engineer

Follow-up

Overseas Service
Team

Accretech-Tosei do Brasil

Accretech Korea

Accretech Malaysia

Accretech Europe

Accretech Taiwan

Accretech Indonesia

Accretech China

Accretech Thailand

Accretech Vietnam

Metrology Centers

In-house Training

GSM (Global Service Meeting)Based Training
The GSM, which is held annually by GSE*, was held online infiscal 2022. 67 service engineer representatives from 12 countries and overseas subsidiaries participated in the event, which
included a video streaming of start-up operations, demonstrations of AI big data functions using webcams and smart glasses, and equipment and product-specific training.

* GSE (Global Service Engineer): An in-house team that trains and supports overseas service engineers

Stable Parts Supply
We currently supply maintenance parts to customers in approximately 32 countries around the world. In fiscal 2022, wewere able to reduce supply operations by adding parts forpolish grinders and dicing machines that take a long delivery

time to our inventory in the USA. In the EU area, we haveestablished a parts supply system for semiconductor wafer
chamfering machines.

Improvement of Support Quality
Improvement of Equipment Operating Rates

To promote remote support, we have implemented and enhanced online security measures and established a new dedicated smart glasses* channel at the Hachioji Plant.

* Smart glasses: Wear-able device shaped like
spectacles. Information
can be displayed on thelensesRemoteSupportOur support

SUSTAINABILITY REPORT 2023

Factors that reduce equipment operating rates may include
short-period stops*, inspections, and malfunctions. When providing service support to customers, error information is registered and aggregated to visualize operating rates and propose
improvements and maintenance plans.

* Short-period stops: A partial stoppage of equipment or a short stoppage

that does not lead to failure due to a malfunction inequipment operation<Technology: A Place for Learning about Products and Measurement>
We hold plant tours, product workshops, metrology seminars,
and web-based seminars for customers, dealers, universities
and high schools, and local companies who use our measuring instruments so that they can deepen their understanding of
measurement technology and view a variety of products.
Number of Times “Place for Learning” Provided in FY2022▪ Seminars and classes (including web-based seminars)·············································································10 times▪ C lasses/measurement guidance at public institutions··········································································22times<Sincerity: Proposal of Solutions>
We provide proposal of solutions, operation training, and otherservices in order to meet the expectations of our customers.
We have a system in place that allows us to respond remotely
to customers who are unable to come to the venue.

Activities in FY2022▪ Call center responses·················· 6,851▪ Number of training sessions········ 351

Initiatives for Customer Safety and Security
In addition to providing direct hands-on experience with ourmeasuring instruments and measurement methods at our Metrology Centers, we also offer remote and web-based seminars
to deepen understanding of our measuring instruments to ensure their safe and reliable use.

Data/Site Report

Digitalization of Support Services

Our Metrology Centers are staffed by engineers who haveample expertise in measurement technology and instrument
operation, and provide "technology" (place for learning), "sincerity" (proposal of solutions), and "reliability" (customer-friendly
support) to meet the various needs of customers.

<Reliability: Customer-friendly support>▪ Consultations for performing measurements, handling of
measuring instruments, and troubleshooting support areprovided by the call center▪ Content of inquiries is analyzed for incorporation into operation manuals▪ Measurement guidance is provided for customers who havepurchased measuring instruments.
▪ We perform consigned measurement for customers who do
not have required measuring instruments, have instruments
without needed features, or are otherwise unable to performmeasurements on their own.

Governance

The Semiconductor Company’s Customer Engineering (CE)
Department is required to have a high level of expertise so thatit can respond to various customer issues. In order to continue to provide high-quality support, the CE Department is also
helping to standardize work levels (accuracy, operation assurance, knowledge, etc.) by conducting training for young engineers and leadership training. In addition, skill sheets are used
to clarify the status of employees' acquisition of knowledge
and skills, which is useful for human resource development.

34

Sales

Nagoya Metrology Center
Osaka Metrology Center

Education and Training

Customers

Hachioji Metrology Center

Initiatives to Address Social Issues

Supply parts in Japanand overseas(15 locations)

Parts Centers

Sales
personSales
adviceInitiatives to Address Environmental Issues

The Semiconductor Company’s Customer Engineering (CE) Department provides a high level of customer responsiveness and value-added services through the Service Division and parts supply without delay through parts centers that enable customers to realize their targeted production.

Sustainability of the Tokyo Seimitsu Group

Semiconductor Manufacturing Equipment BusinessSupport Quality

Training of Engineers Overseas
In order to strengthen the global support structure, the overseas service team invites service engineers from various countries to the Metrology Center located in the Tsuchiura Plant for
intensive training and drills. In fiscal 2022, 11 people from 4
countries participated in the basic training for new engineers,and 9 people from 6 countries participated in the advanced
training for skilled and experienced engineers.

SUSTAINABILITY REPORT 2023

35

Supply Chain Management

Procurement Policy
In providing high-performance, high-quality products and services to customers, the Tokyo Seimitsu Group deepens partnerships with all suppliers throughprocurement, builds mutual cooperation and trust, and forges relationships that allow us to grow and develop together.

Through fair and impartial evaluation processes and communication, we will respond to market changes and promote high-value-added manufacturing
together with reliable suppliers.

Target: Suppliers connected with 80% of procurement amount in FY2023 (126 companies)
FY2022 Result: Suppliers connected with 26% of procurement amount (56 companies)
Type
Labor
Health and
SafetyEnvironment
EthicsManagement
SystemNumber of questions
Assessment items
Items related to human rights, such as foreign workers, child workers, overtime labor, forced labor, abuse, and discrimination
19
11

Items related to occupational safety, work that uses chemicals, or work that is physically demanding8
9

Items related to understanding the company's greenhouse gas emissions and reduction targets
Items related to bribery and corruption, privacy and information security
Items related to the establishment of processes for continuous improvement in labor, health and safety,
the environment, and ethics

12

Curtailing and Managing Environmental Impact (Risk)

Supply Chain Promotion Structure■ Promotion Structure

Board of Directors

Sustainability Committee
Committee Chairman:
Chairman and CEO

We ask our suppliers to use the "Environmental Management
Structure Survey Sheet" or "Environmental Management
Checklist" for survey and evaluation purposes, and to develop and manage systems to avoid environmental risks in the

supply chain. Suppliers that outsource product manufacturing
or services are required to participate in a survey conductedby our Company every two years regarding human health andliving environments, including air pollution, water pollution, theOffensive Odor Control Act, vibration and noise facilities, andspecially controlled wastes.

Training for Employees
Initiatives to Address Social Issues

Promotion Subcommittee as a team for responding to important issues. the Quality Assurance Department, the Sustainability Department, and Environmental Product Promotion Department, and is led by a member of the Sustainability Committee.
The Supply Chain Team develops goals and measures related
to supply chain management and sustainability procurement,
and the Supply Chain Promotion Subcommittee, as a subordinate organization, is responsible for their implementation.

Target and Result

Initiatives to Address Environmental Issues

In addition to quality, we comply with laws and social norms, and engage in procurement activities that fulfill social responsibilities such as human rights,
labor, safety and health, global environmental protection, and information security throughout the supply chain.

Sustainability of the Tokyo Seimitsu GroupThe Tokyo Seimitsu Group considers all of our suppliers to be our valued partners. Through collaboration with our
suppliers, we aim to develop a strong supply chain that contributes to a sustainable society by autonomously responding to the needs of the international community as a responsible company.

We conduct training for employees in Procurement Section and Procurement Team to develop human resources who promote responsible procurement. In fiscal 2022, we provided training on topics including the Subcontract Act, Business Partnership Building
Declaration, and the invoice system. We plan to provide Subcontract Act related training for all employees.

Teams for Responding to Important
Issues (Standing Teams)

Supply Chain Team
Supply Chain Promotion
Subcommittee

Formulation of Supplier CSR Guidelines and Request for Cooperation
quality, and information security. We ask that our suppliers understand the purpose of these guidelines and cooperate with
us in promoting sustainable procurement activities.

▪ FY2015: Policy on CSR▪ FY2016: Overview of the “SCM Check Sheet” and Survey Request▪ FY2017: T rends in CSR/Results of the Previous Year’s“ SCM Check
Sheet”/Tokyo Seimitsu’s CSR Activity Report▪ FY2018: T okyo Seimitsu’s CSR Activity Report/Trends in CSR/Initiatives
for the Supply Chain/Supplier CSR Guidelines (First Edition)/
Overview and request for submission of “Check Report”▪ FY2019: T rends in Prohibited Substances in Products in 2020/Sharing ofInformation on Typhoon Damage in 2019/Review of BCP/
Introduction to Disaster Countermeasures▪ FY2020: Overview of Web-based System for Suppliers/Trends in Environmental Laws and Regulations for Products/CSR Questionnaire▪ FY2021: S eminars cancelled due to prevention of new coronavirus
infection▪ FY2022: T ransition from CSR to Sustainability Activities/Self-Assessment
Referencing the RBA’s Code of Conduct

Formulation of Supplier CSR Guidelines and Request for Cooperation

Web-Based System for Suppliers

Supplier CSR Guidelines Check Report (Japanese)
https://www.accretech.com/jp/assets/confirmCsr.pdf

We are developing a web-based system for suppliers to share
information with suppliers, broadly and without redundancy.
This system will address the ever-growing need for information
sharing, including supplier CSR questionnaires, notificationsof disasters such as earthquakes and heavy rains, surveys ofdamage conditions, and communication of various notifications. We will use this system to build a structure for more sustained and active communication with suppliers.

(Responsible Business Alliance) from fiscal 2022. Responses
were received from 53 companies (response rate: 94.6%). The
results of the assessment analysis are provided to suppliers asfeedback. For items with low scores, suppliers are requested
to take corrective actions and measures for improvement.

〈Web-based system for suppliers〉

Supplier

Main communications

Tokyo Seimitsu

Information/survey concerning CSR procurement(CSR Guidelines, CSR Assessment,
survey on the use of non-compliant products)
Damage impact survey(earthquake, typhoon, ﬂood, plant ﬁre)Miscellaneous notices(celebratory get-togethers, summer holidays,
New Year's celebration,
plant regulation information)

Arriving email

Registration/response

Data/Site Report

Tokyo Seimitsu’s Supplier CSR Guidelines (Japanese)
https://www.accretech.com/jp/assets/SupplierCsrGuidelines.pdf

Supplier CSR Survey
Since fiscal 2016, we have employed the “SCM (Supply Chain
Management) Check Sheet” to conduct a survey. A survey was
conducted for the top 56 companies in terms of percentage
of Sustainability Assessment procurement value with reference to the SAQ (Self-Assessment Questionnaire) in the RBA

Every year, Tokyo Seimitsu offers CSR seminars at workshops
hosted by suppliers. In order to promote understanding of theimportance of fulfilling social responsibilities throughout the
supply chain, we explained about the Self-Assessment Questionnaire (SAQ) provided by the Responsible Business Alliance(RBA) in fiscal 2022 and asked for cooperation in surveys in
response to the demands of the international community.

Governance

We have declared our compliance with the Responsible
Business Alliance (RBA) to meet the demands of the international community, including corporate responsibility for thesafety of the working environment, worker dignity and environmental impact throughout our supply chain. Based on the RBA
Code of Conduct, we have formulated the “Tokyo Seimitsu
Supplier CSR Guidelines” that set out our requirements withregard to procurement policy, human rights and labor, occupational safety and health, the environment, ethics, safety andCSR Seminars

Download

Supplier Evaluation System
Once a year, the Company conducts commendations for suppliers. We commend outstanding suppliers based on evaluations offive items: quality, cost, delivery time, rate of cooperation, and management. In fiscal 2022, we commended two business partners
and presented them with certificates of recognition.

36

SUSTAINABILITY REPORT 2023

SUSTAINABILITY REPORT 2023

37

Occupational Health and Safety

Targets and Results
FY20200
6

FY2021
2
10

FY2022
1
12

Occupational Health and Safety Promotion Structure
At the Hachioji and Tsuchiura plants, we have established the
Safety and Health Committee, with each plant manager serving as the general safety and health manager. The committee
plans and deliberates on major health- and safety-related matters in a bid to maintain and improve a safe and comfortable
work environment. To raise employees’ awareness of healthand safety in the workplace and in the interest of maintaining and promoting their health, the committee meets once a■ Safety and Health Committee

Locations covered: Hachioji Plant and Tsuchiura Plant

Occupational Accidents*   5S: A slogan for maintenance and improvement of workplace environments. It stands for sort (seiri), set in order (seiton), shine (seisou), standardize (seiketsu), and sustain (shitsuke)■ Accidents by Type

Number of occupaNumber of injuries orTypetional accidents fatalities due to work-related(incidents)
accidents (people)
Flying or falling objects
00
Cuts or abrasions
5
5
Being caught
1
1
Falling33Colliding3
3Overexertion
1
1
Locations covered: Hachioji Plant and Tsuchiura Plant

Hachioji Plant

Tsuchiura Plant

Safety and Health Committee

Safety and Health Committee◦Committee Chairman◦Committee
Vice-Chairman◦Industrial physician◦Safety Manager ◦Committee
members◦Health Manager◦Disaster Prevention ◦Observers
Manager◦Secretariat

FY2019FY2020

FY2021

FY2022

1.5
1.5
1.0

Tokyo Seimitsu (non-consolidated basis)2
Average for manufacturing companies in Japan*

Average for manufacturing
companies in Japan

1.20

1.20

1.21

1.31

1.25

1.20

1.0
0.5
0.5
0.0

1.25
1.31 1.25

Tokyo Seimitsu (non-consolidated basis)
1.20
1.20
1.21

Tokyo Seimitsu(non-consolidated basis)

1.20
0.71

1.21

0.00

0.71

0.00

0.53

0.26

1.31
0.53

Semiconductor Company

0.00

0.97

0.00

0.66

0.33

0.71
0.00
0.00
2018

0.00
0.00
2020

2022
(FY)
0.0
2
2020
2021
2022
* 2018
Ministry2019
of Health,Labourand Welfare(Survey on Industrial Accidents) (FY)*2 Ministry of Health, Labour and Welfare(Survey on Industrial Accidents)■ Trend of accident severity rate*1
2
Average for manufacturing companies in Japan*
Tokyo Seimitsu (non-consolidated basis)2
Average for manufacturing companies in Japan*
0.15
Tokyo Seimitsu (non-consolidated basis)

Metrology Company

0.00

0.00

0.00

0.00

0.00

0.10
0.05
0.05
0.00
0.00

0.10

0.10

0.10

0.10

0.07
0.07

0.000

0.003 0.000

2018
0.000

0.003
2019 0.000
2020*1 Frequency rate for accidents resulting in leave: Indicates the frequency of injury or death due
to occupational accidents
Formula: (Casualties/total hours worked) × 1,000,000

2021

0.06
0.06

0.08
0.08

0.000
0.000
0.04
2021
2022
0.04

(FY)

FY2018FY2019FY2020

FY2021

FY2022Average for manufacturing
companies in Japan

0.10

0.10

0.07

0.06

0.08

Tokyo Seimitsu(non-consolidated basis)

0.000

0.003

0.000

0.040

0.000

Semiconductor Company

0.000

0.004

0.000

0.050

0.000

Metrology Company

0.000

0.000

0.000

0.000

0.000

◦Observers◦Secretariat

Specialized subcommittees

Disaster Prevention
Subcommittee

Health and Safety
Subcommittees◦Specialized Subcommittee◦Specialized Subcommittee◦ Specialized Subcom- ◦Specialized Subcom- ◦Specialized Subcom-◦Specialized Subcommittee◦Specialized Subcommittee◦Specialized Subcom- ◦Specialized Subcom- ◦Specialized Subcom-◦Specialized Subcommittee◦Specialized Subcommittee◦Specialized Subcom- ◦Specialized Subcom- ◦Specialized Sub-

◦ Secretariat◦ Secretariat◦ Secretariat

members

ChairmanVice-Chairman
members

mittee Chairman

mittee Vice-Chairman
mittee members

Fire Prevention
Subcommittee
mittee Chairman

mittee Vice-Chairman
mittee members◦ Secretariat

Traffic
Subcommittee
mittee Chairman

mittee Vice-Chairman
committee members◦ Secretariat

Risk Assessments at Work Sites
We regularly conduct risk assessments by conducting workplace inspections to check working environments and identify
issues. This leads to the creation of measures for dealing withthese issues and brings about improvements. In addition torisk assessments performed when introducing new machineryor changing work procedures, we work to avoid risk by conducting education and training on machinery operation, heavyequipment work, wiring operation, and other topics as needed.

Data/Site Report

0.15
0.10

2019

0.53

0.26
0.26

◦Safe Driving
Manager

Governance

FY20182◦Industrial physician◦Safety Manager◦Committee
members

Health and Safety
Subcommittees

Vice-Chairman

Average for manufacturing companies in Japan*◦Health Manager◦Fire Prevention
Manager

Specialized subcommittees

Chairman■ Trend of accidents frequency rate*1◦Committee Chairman◦Committee
Vice-Chairma

Initiatives to Address Social Issues

By accident type, “flying or falling objects” and “cuts or abrasions” accounted for the majority of accidents. In response, weare continuing our efforts to prevent recurrence and raise safety awareness through education and guidance on equipment
handling, thorough implementation of protective equipment
wear, and thorough implementation of the 5S*.

month, in principle, and on an ad hoc basis when the generalsafety and health manager deems necessary. In fiscal 2022,
the committee met 12 times, as scheduled.
We also conduct internal audits twice a year, with results submitted to the Audit Department and reported to the Board of
Directors. The Health and Safety Committee is subject to audits by the Audit Department.

Initiatives to Address Environmental Issues

Target00

Accidents resulting in leave
Accidents not resulting in leave

Sustainability of the Tokyo Seimitsu Group

Many devices, parts, tools, and processing machines from the Tokyo Seimitsu Group, a manufacturer of machinery, can be found at manufacturing and distribution sites. As our products consist of equipment used in production, many tasks such as delivery, installation, maintenance, and inspection occur in the unfamiliar environmentsof customers’ production sites. By carefully investigating risks associated with these, observing and predicting
the movement and flowline of workers, and implementing measures to minimize safety risks, we promote occupational health and safety initiatives so that everyday work actions can be carried out safely and rationally.

Risk assessment training for workplace leaders*1 Severity of accidents resulting in leave: Indicates the percentage of the degree of loss causedby occupational accidents
Formula: (Total lost workdays/total hours worked) × 1,000

2020
2021
2022
*22018
Ministry2019
of Health,Labourand Welfare(Survey on Industrial Accidents)(FY)*2 Ministry of Health, Labour and Welfare(Survey on Industrial Accidents)

38

SUSTAINABILITY REPORT 2023

SUSTAINABILITY REPORT 2023

39

Occupational Health and Safety

In-house Training

Self-Defense Firefighting Training

We provide in-house training to help employees avoid hazards
in a variety of situations, including commuting, traveling, andworking in the factory.

Number ofattendees
Traffic safety seminar

391

Risk assessment training

86

Forklift, sling work, crane safety training at
Tsuchiura Plant

63

High pressure gas workshop safety seminar

36

Special training on low voltage electricity handling27■ Number of attendees in FY2022

Number ofattendees
Hachioji Plant e-learning theme:"Cardiopulmonary Resuscitation and AED Use Procedures"

896

Training

Hachioji Plant
Number ofattendees

Training course for sling and crane operators

122

Foremen and safety and health supervisors

80Operation chief of organic solvents

7

0

Skill training course for chief ofspecified chemical substances(tetraalkyl lead, etc.)

60Handling of dangerous substances
Category Otsu-4

01

Forklift

54Power press

1

0

FY2022 SEAJ Recommended
Safety Training

Tsuchiura Plant
Number ofattendees

Number ofattendees

New attendees

42

Attendees for recertification(required to attend every two years)

53

Disaster and Accident Prevention
At the Tsuchiura Plant, managers and general staff conduct
weekly 5S patrols, while the Health and Safety Subcommittee
members perform monthly safety patrols. In cases where improvements are needed, follow-up patrols are conducted after
the improvements are proposed, to confirm the effectivenessof the patrols. At the Hachioji Plant, we conduct safety inspections of all workplaces once a year through teams composedof several persons, including the Plant Manager. On safety
inspections, we use a check sheet to identify safety risks. At
workplaces where risks are discovered, we conduct follow-up
inspections following a set period of time after directions for
improvement are issued, to confirm the effectiveness of the improvements. We regularly carry out 5S patrols to promote thetidying and ordering of workplaces. Using a scoring system in-troduced in fiscal 2017, we commend high-scoring workplaces
twice a year, increasing 5S awareness in every workplace.

Governance

Forklift, sling work, crane safety training
at Tsuchiura Plant

Content of courses conducted by the
Tokyo Federation of Labor Standards
Associations, Hachioji Branch

Initiatives to Address Social Issues

Risk assessment training▪ Self-Defense Fire Brigade
At the Hachioji Plant and Tsuchiura Plant, we organize self-defense fire brigades and conduct regular training one or twotimes a month according to annual plans. The Company also
participates in an annual self-defense firefighting training review
hosted by the Hachioji Fire Department and the Hachioji Fire
Prevention Management Study Group. In this competition,
self-defense fire brigades from business establishments in thecity gather to compete in a heated competition to test the effectiveness of their daily training based on speed and accuracyof indoor fire hydrant operation. 32 self-defense fire brigades
from Hachioji City participated in the self-defense firefighting
training review for fiscal 2022, and our self-defense fire brigade
won in the “No.1 Fire Hydrant, Male Group B” category.

▪ Semiconductor Equipment Association of Japan (SEAJ)The Semiconductor Equipment Association of Japan promotes
SEAJ recommended safety training an industrial standard
for safety training of personnel involved in the installation,
maintenance, and servicing of semiconductor manufacturing
equipment. At the Hachioji Plant, our employees who belong
to Semiconductor Equipment Association of Japan’s Safety
Training Subcommittee conduct online-based SEAJ Work
Safety Seminars for Semiconductor Company CE Department
employees and manufacturing and design engineers who workon the manufacturing floor or in clean rooms. A total of 430
employees have participated in the seminar so far.

■ Number of attendees in FY2022

Initiatives to Address Environmental Issues■ Number of attendees in FY2022

Each year, each plant’s Disaster Prevention Subcommittee
plans and conducts emergency evacuation drills for all departments in the plant. The Hachioji Plant conducted an evacuation drill in fiscal 2022 under the e-learning theme "Cardiopulmonary Resuscitation and AED Use Procedures." The detailsof such training are reported to the Tokyo Fire Department, by
submitting a “Notice of Self-Defense Fire Drill Implementation.”▪ Hachioji Branch of Tokyo Federation of Labour Standards
Associations
In order to promote activities to prevent industrial accidents
among local workers, we participate in seminars held by the
Hachioji Branch of Tokyo Federation of Labour Standards Associations. These seminars are designed for participants to acquire the skills necessary to engage in work. Employees who
have completed the seminars take in-house practical tests
tailored to factory environments for thorough health and safety
education.

Sustainability of the Tokyo Seimitsu Group

External Training and Seminars

Education and Training

Handling of Chemicals and Chemical Substances

40

SUSTAINABILITY REPORT 2023

When considering the purchase of industrial chemicals, we
conduct a chemical substance risk assessment to check forthe presence of contained environmental pollutants (organic
solvents, specified chemical substances, hazardous materials,etc.), in accordance with our internal regulations. The department in charge of this matter at the Hachioji Plant decides
whether to purchase the chemicals based on the results ofassessments conducted at the Hachioji and Tsuchiura Plants.
In fiscal 2022, 76 new chemical substance risk assessments
were conducted at the two plants, both for new uses and forreviews of existing uses.

We require divisions that manage and use chemical substances to conduct regular inspections and regular quantity checks.
The Company is also promoting the reduction and substitutionof chemical substances in accordance with the PRTR Act, Ordinance on Prevention of Organic Solvent Poisoning, and the
Poisonous and Deleterious Substances Control Act. In addition, we carry out patrols to check the status of chemical management and storage and the supplies used to prevent chemical leaks through the Regulated Substance Control Working
Group under the Safety and Health Committee.

SUSTAINABILITY REPORT 2023

Data/Site Report▪ Emergency Scenario Training
Emergency scenario training is conducted at least once a
year at each plant so that appropriate tasks, such as recovery/cleaning, can be carried out in the event of a hazardous
substance leak or splash-based accident. Each division that
handles hazardous substances submits a training plan tothe person responsible for environmental management at
the beginning of the relevant term and submits a report after
the training is conducted. In fiscal 2022, the Hachioji Plant
conducted training 32 times for 11 divisions. At the Tsuchiura Plant, 143 people from the plant department took part inchemical cleaning agent splash prevention training.

41

Health Management

Healthy Company Declaration
Needless to say, the health of employees is the cornerstone of longterm stable management for a company.



October 1, 2019
Tokyo Seimitsu Co., Ltd.

We sincerely hope that all of our employees will maintain and promote theirhealth and that they will continue to play an active role in the company.

Health Checkups and Stress Level Check System

Chairman and CEO Hitoshi Yoshida■ FY2022 Results

Health Declaration

Actual Details and Results

100% of medical
checkups will be taken

Achieved periodical medical examination
rate of 93.7%

We will utilize the resultsof health checkups

A total of 105 people were encouraged toreceive specified health guidance

We will create a healthy
environment

Video dissemination addressing healthy
company declaration themes: 12 times(monthly)

We will promote a better
diet

Provided Healthy Company Declaration
Collaborative Menu in cafeterias (once a week)

We will encourage
exercise

Introduced the web walk rally sponsored by
the Health Insurance Association

We will promote
nonsmoking

Dissemination of health information on theharmfulness of tobacco

We will promote mental
healthInitiatives to Address Social Issues

Introduced counseling services
Achieved 99.1% examination rate for stresslevel checks

Measures to Address Long Working Hours
As measures to address long working hours, we manage
working hours through entry/exit systems, encourage our
employees to take annual paid leave, and promote industrial
physician consultations and the taking of annual paid leave for
employees who have a high level of total working hours withina month or three months. We introduced the entry/exit system,
which uses IC card-based employee ID cards in fiscal 2020,
strengthening company-wide management of working hours.
In fiscal 2022, average monthly overtime hours per person decreased by 3.6 hours from the previous year.

Measures to address long working hours▪ Setting of Wednesdays and bonus payment days (twotimes a year) as days for leaving work on time▪ Work time management by collating attendance time withgate entry/exit and PC log times▪ Distribution of information on employee overtime to Company management, increasing its awareness of employee
work hours▪ Counseling or interviews with or based on the judgmentof industrial physicians

GovernanceEvery year, we perform periodical medical examinations,comprehensive medical examinations, gynecological checkups, and other procedures to check the health of employees.
For persons with abnormal findings, we encourage repeat
examinations and provide specified health guidance. Our examination rate for stress level checks, including employees atoverseas posts or stationed outside the company, exceeds
99%. The checks have become established as an opportunity for employees to take note of their own mental condition.
The Company manages individual stress level check results inaccordance with laws and regulations and provides feedback
to the individuals. Individuals with high stress levels meet withindustrial physicians. We also conduct organizational analyses
and, after reporting to the Risk Management Committee andthe Safety and Health Committee, work to improve the workplace environment.

An industrial physician at the Hachioji operation site provides
health promotion videos (updated monthly) for employees on
the Company portal site.

Initiatives to Address Environmental Issues

We would like to ask for the understanding and cooperation of our employees in this endeavor.

Video Dissemination on Health Topics

FY2022 Video Topics
VDT (visual display terminal) syndrome, back pain, stress,
summer fatigue, hypertension,stress management, diabetes, obesity, sleep,
basic cancer knowledge, cancer screening,
autonomic ataxia, types and mechanisms of headaches,
menopausal disorders, and adjustment disorderHealth Declaration▪ 100% of medical checkups will be taken▪ We will utilize the results of health checkups▪ We will create a healthy environment▪ We will address diet
▪ We will address exercise▪ We will address nonsmoking▪ We will address mental health

We have been working on promoting the health of our employees byconducting health checkups and other initiatives. However, in light of
the growing momentum to promote "health management" and thelaunch of the "Healthy Company Declaration" campaign as a social
framework for such promotion, we have decided to make a further
company-wide commitment to health management, making a Healthy
Company Declaration.

Sustainability of the Tokyo Seimitsu GroupIn order for people to make the most of their capabilities and work with a sense of purpose, the Tokyo SeimitsuGroup believes it is important for those people and their families to be physically and mentally healthy. We work tocreate comfortable workplaces by means including strict working hour management to avoid long working hours.

■ Number of Overtime Hours and Number of Days of Paid

Leave Taken

Healthy Company Declaration Collaborative Menu
The Hachioji and Tsuchiura Plant cafeterias offer a “Healthy
Company Declaration Collaborative Menu” once a week, taking into consideration the health of our employees from a dietperspective.

Number of overtime hours
per person
Number of days of paid
leave taken per person

FY2020

FY2021

FY2022

25.8

29.3

25.7

12.2

13.1

14.5

Data/Site Report

42

SUSTAINABILITY REPORT 2023

SUSTAINABILITY REPORT 2023

43

Work-Life Balance

The Tokyo Seimitsu Group believes that diverse perspectives and ideas stimulate each other and create new value.
Therefore, we shall respect the personality and individuality of employees and shall not discriminate on the basis ofgender, age, nationality, ethnicity, race, physical or mental disability, gender identity, culture, religion, ideological orpolitical beliefs, national origin or family background, etc. In order to realize a workplace where all employees canwork safely and with a sense of purpose, we are promoting various initiatives that embrace diversity.

The Tokyo Seimitsu Group has developed a system that enables all employees to be active while balancing workand life. By promoting diverse and flexible work styles, we aim to improve productivity, achieve work-life balance,and create a work environment that is comfortable for everyone.

TargetAnnual paid leave: 100% acquisition rate (five days of annual leave)

Targets

Eligible employees who are granted at least 10 days of paid leave per year
This does not include special paid leave or other leave other than annual paid leave

ResultResultIndex

FY2021 results

FY2022 results

FY2023 results

1.5

1.9

2.4

-

Percentage of female officers

7.7

7.7

15.4

-

Percentage of female regular employee hires

6.1

17.0

18.3

-

Percentage of female regular employees

6.4

7.4

8.5

-

Number of hours of career training for full-time female employees

-

-

87

-

Percentage of employment of persons with disabilities*

1.94

1.95

2.07

2.17

Number of employees taking child-nursing leave
Number of employees who utilized the nursing care leave system
Number of employees who took nursing care leave

Number of retirees

5

4

9

-

Scope: Full-time employees of Tokyo Seimitsu Co., Ltd. (non-consolidated basis)

Number of retirees re-hired via re-employment contract

7

10

20

-

Percentage of retirees re-hired

58.3

71.4

69.0

-

We have established an organization centered on people withdisabilities, and are striving to expand and retain employment
and improve the working environment. In addition, we established a support system in fiscal 2022 that enables employeeswith disabilities to work independently by assigning full-time
instructors.

Action Plan for Promoting Employment and Careers of Women
https://www.accretech.com/en/sustainability/esg/diversity.html#diversity_03

Coordination■ Initiatives for Employment of Persons with Disabilities

SUSTAINABILITY REPORT 2023

Retention

Childbirth

Birth

Leave forfemaleemployees

Special paid
leave

Maternity
leave(before childbirth)Childcare

13

When childenterselementary
schoolWhen childenters juniorhigh school

Maternity Childcare
leave leave system(afterchildbirth)

Special paid
leaveChildcareleave
at time ofchildbirthNursing care

When child
graduatesfrom juniorhigh school

Nursing careleave system
Nursing leave

Child-nursing leave

For men and women

Reduced working hours for childcare
Exemption from overtime work and working on holidays
Restrictions on late-night work

For menFor women

Reduced working
hours for nursing care
Restrictions on
overtime work
Restrictions on
late-night work

Data/Site Report

Opportunities
for female
employees tointeract witheach otherJob creation

Pregnancy

Work-based support

Support forthe careerdevelopmentof female
employees▪Completely redesign the recruitment section of our
website in order to increase the female recruitment rate
improve students’ interested in the Company▪Utilize scouting service to increase opportunities forconnecting with science-oriented women▪Conduct interviews for women who are interested in the
Company with female employees so that they can have aclearer idea of what it is like to work at the Company▪Conduct career development training for women▪Raise awareness of the development of female subordinates
through human resource development training for superiors▪Introduction of external counseling services in April 2022 (these
services can be utilized by all employees, not only women)▪Promote opportunities for female employees to interact
with each other through activities such as women's
career development training▪Select female senior employees as partners for new
female employees and promote opportunities for them tointeract through regular interviews and other means

MarriageWork-based support

Advancement▪
 Conduct workplace tours and practical training incooperation with employment support agencies, special
needs schools, etc.
Also, conduct periodic interviews regarding workplaceretention.
▪
 Promote understanding of employment and job creation
through discussion with divisions that do not havepersons with disabilities, and submit job requirements to
Hello Work▪Promote mutual understanding through workplace tours
and practical training▪
 Have employees in the host department participate in a
supporter training course to strengthen the hosting
system.
▪Introduction of full-time instructors for persons withdisabilities

Work stylesupportGovernanceTo increase the number of women among our core human resources, we believe we must urgently increase our recruitmentof full-time female employees and improve the environment forsuch employees. To drive this effort, we have formulated the“Action Plan for Promoting Employment and Careers of Women” (FY2021–2025) and set targets to be achieved by the endof fiscal 2025. In addition, we are working to create awarenesswithin the Company toward the advancement of female employees and to support them.

FY202276.7
100
34100 (2/2)
38.5 (10/26)
100
11
0
9

Leave-based support

Employment of Persons with Disabilities

Women
Men
Return to work rate

FY2021
69.8
100
14None eligible
19.2 (5/26)
100
7
0
4

Main Support Systems

Leave-based support

Promotion of Women’s Participation and Advancement

Percentage of employees taking childcare leave(number of people taking leave/number of people
eligible)

FY202065.9100
6100 (2/2)
9.4 (3/32)
100
4
1
1

Initiatives to Address Social Issues

FY2020 results

Scope: Full-time employees of Tokyo Seimitsu Co., Ltd.
* Data depicted in the table are current as of June 1 of each year. The Act to Facilitate the Employment of Persons with Disabilities stipulates that employment of
one individual with a serious disability is equivalent to employing two individuals for purposes of calculating the number of associates with disabilities and percentage of employment.

44

Annual paid leave acquisition rate
Rate of taking five days of annual paid leave
Number of employees taking refreshment leave

Percentage of female managers■ Initiatives for the Promotion of Women’s Participation andInitiatives to Address Environmental Issues

Target 1: Increase the percentage of female regular employee hires to 20% or more (achieve by fiscal 2025)
Target 2: Increase the percentage of female regular employees to 10% or more (achieve by fiscal 2025)

Hiring ofwomen
new graduate
recruitment

Sustainability of the Tokyo Seimitsu Group

Diversity & Inclusion

For details about each system, please visit: https://www.accretech.com/en/sustainability/esg/work_life_balance.html#work_life_balance_03

Re-Employment System for Retirees

Welfare Benefits

Tokyo Seimitsu has introduced a re-employment system thatallows employees to continue working as part-time employees
after retirement. We have established a system that enables
employees to play an active role by making use of the knowledge, technology, and know-how cultivated over many years.

We help our employees achieve a work-life balance by providing a full range of welfare benefits. Employees can easily takeadvantage of services, including discount services for leisure,dining, etc.

[ List of Welfare Benefits ]Property accumulation saving scheme, employee shareholding association, employee cafeterias (Hachioji and Tsuchiura),comprehensive welfare benefits program (Benefit One), mutual
aid association, long-term service commendations, and club
activities
SUSTAINABILITY REPORT 2023

45

Human Resource Development*1 Human resource development training: We promote training and on-site practices so that supervisors can develop the autonomy of theirsubordinates and develop employees who can learn and grow the skills
required for each job.
▪Dialogue skills to promote growth▪Confirmation of progress and processes▪Goal integration (recognition of the significance, value, and opportunities
for growth for subordinates)

Sustainability of the Tokyo Seimitsu GroupIn order to create the World's No. 1 Products through WIN-WIN relationships, all employees, the greatest assetsof the Tokyo Seimitsu Group, must accept diverse values, draw out each other's strengths, and grow autonomously.
In order to support the growth of such employees, the Group will provide programs such as education and training, opportunities to take on challenges on the ground, and work to create a workplace environment where diverse human resources can feel rewarding.

*2  360-degree feedback: An approach in which a subject asks thosearound him or her to observe his or her behavior; the observers provide
feedback on the subject on his or her strengths and issues from their perspectives, in order to:▪ R ecognize the gap between self-analysis and behavior observed
around them, reflect on themselves, and use it as a trigger for behavior
change▪ Help participants understand their management skills and improvethem further

Self-Development Support System

The mission of the Group includes: “Growing together with partners and customers by collaborating technology, knowledge, and information to create theworld’s No.1 products,” and “WIN–WIN relationships create the world’s No.1 products”
To fulfill this mission, we need employees who can:▪ Gain a high level of trust by facing customers' issues andsolving them;▪ Accept diverse values and see things from the other person's point of view to draw out mutual strengths and cooperate with each other; and▪ Connect their own ideas to technical and business innovations, aim for high goals, and grow autonomously

The Group supports the growth of its employees, who are the mostimportant asset, by creating a work environment and implementing
measures as described below:▪ Provide educational programs, including training and educa-

The Company has enhanced its self-development support system to provide employees with opportunities to autonomously acquire
and improve work-related knowledge and skills. We have introduced an e-learning system in which more than 300 courses can betaken freely, and there is a correspondence education course available that the Company completely subsidizes for those who havecompleted the course.

e-learning
Scope : F
 ull-time employees of Tokyo SeimitsuContent : Courses on management, IT literacy, DX, languages,
technology and skills as well as series on management, industry, economics, culture, and other topics

Correspondence Education Courses
Scope : Full-time employees of Tokyo Seimitsu group companies in Japan (Tokyo Seimitsu, Tosei Engineering,Tosei Systems, Tosei Box, and Accretech Powertro
System)Content : General courses on business skills, financial accounting, DX, languages, etc., as well as technical and skillbased courses and certification exam preparation
courses

Initiatives to Address Social Issues

tion, according to the growth stage of individual employees▪ Provide employees with opportunities to take on challenges
in the workplace and support through communication with
their supervisors▪ Promote various measures and create an environment inwhich diverse human resources can feel fulfilled in theirwork and can play an active role

Initiatives to Address Environmental Issues

Human Resource Development PolicyAward Systems
Education and Training Achievements
Category

By establishing a variety of award programs, the Company aims to nurture the creativity and spirit of challenge among our employees and increase their motivation.

FY2020 results

FY2021 results

FY2022 results

Total training hours

3385.16445.99938.7

Average number of training hours per employee
Number of attendees
Education investment per employee (yen)

3.6
149
22,432.3

7.0
170
29,415.3

9.4
264
35,576.5

Award name
Overview
FY2022 results
Improvement Proposal Awards Given to departments that have contributed to improving the quality of operations and the environment 7 projects/initiatives
These awards recognize employees and technology development projects that made technicalTechnical Awards
2 projects/initiatives
achievements contributing to the improvement of business performance
New Business Plan Proposal
These awards commend ideas for new products likely to appear in the future based on open-minded
12 projects/initiatives
Awardsthinking

Scope: Full-time employees of Tokyo Seimitsu Co., Ltd.

Eligible employees : Improvement Proposal Awards
		Technical Awards

Education and Training
The Company has established a variety of training programs
tailored to the abilities and roles of each employee, and has incorporated them into our Human Resource Development System. We perform common training for employees to acquire
the basic knowledge and business skills required throughout

Commontraining

Levelspecifictraining

Scope: Full-time employees of Tokyo Seimitsu Co., Ltd.

46

SUSTAINABILITY REPORT 2023

Training theme

Total number oftrainees in FY2022

General technical training
Mechanical design training
Electrical circuit design training
DepartmentProgramming seminar
specific training
Software-related seminar
Semiconductor-related seminar
SEAJ recommended safety training

148

Engagement
In order for the Group to achieve significant growth in a rapidlychanging environment, it is important for employees to workwith high motivation, improve productivity, generate innovativeideas, and deliver high added value to customers.
To this end, we started an engagement survey in March 2023
to measure the state of employee engagement.
In the survey, we examine the following factors to improve engagement:▪ Are employees able to demonstrate their strengths andfeel a sense of job satisfaction?
▪ Do employees trust each other and are internal communications active?
▪ Do employees know the company well and are they attached to the company?

Increase
employeecapabilities

Realize
our visionCorporate
growth

Employee job satisfaction
An environment that promotes
employee growth and allows diverse
human resources to flourish
Safe and healthy workplaces for
employees
Consideration for human rights
Compliance with labor-related laws andregulations

Data/Site Report

Number of training
hours in FY2022
Human resource development training*1
358
576
360-degree feedback review training*2
e-learning (Compliance-related training)
1,944
New employee training
5,684
New employee follow-up training
285
Training for new managers
213
Training for new section chiefs
348
Training for new assistant section chiefs
445
Career training for full-time female employees
87
Training theme

the Company, level-specific training for employees to acquire
the skills required for each career level, and department-specific training for employees to acquire the highly specialized
individual skills required for specific organizations and tasks.

Governance: Employees of Tokyo Seimitsu (non-consolidated) (including temporary employees): Employees of Group companies (Tokyo Seimitsu, Tosei Engineering, Tosei Systems, Tosei Box, andAccretech Powertro System) engaged in development work
		 New Business Plan Proposal Awards : Employees of domestic and overseas Group companies (including temporary employees)

Basis foremployeejob
satisfaction

VisionThe Tokyo Seimitsu Group is always committed to building a future full of dreams.
Semiconductor Company: Contribute to the realization of an advanced networked
society with cutting-edge technology.
Metrology Company: Aim to become a future-creating company that supports“innovation in manufacturing.”

SUSTAINABILITY REPORT 2023

47

Social Contribution

As we contribute to society through our business activities, we will clarify issues and needs in different regions
through dialogues with communities and will advance social contribution activities to resolve these matters, tobuild a healthy and sustainable society as a corporate citizen.

Donations for Humanitarian Aid Related to the Situation in Ukraine
In May 2022, we made a donation of 10 million yen to Japan for UNHCR, a non-profit organization for humanitarian aid activities in
Ukraine. We will continue to consider donation amounts, support targets, outsourced organizations, etc., after carefully examining
each individual situation and need.

Education and Culture
Learning the Way of Manufacturing in Hachioji
Nihon Kogakuin College of Hachioji holds a special class called“Learning the Way of Manufacturing in Hachioji” on an annual
basis. In January 2020, Mr. Mitsuhashi, Tokyo Seimitsu Hachioji
Plant Manager, gave a lecture on the theme of “Current Status ofState-of-the-Art Semiconductor Manufacturing Equipment: Supplied from Hachioji to the World.” The lecture focused on how oursemiconductor manufacturing equipment and world-class precision measurement technologies are deeply involved in all kinds ofproducts and cutting-edge technologies in our daily lives.

Nihon Kogakuin College of Hachioji “Learning the Way of Manufacturing in Hachioji” 2019-2020 Implementation Record
https://neec.meclib.jp/nhac_monodukuri/book/

GOVERNANCE
Governance

Providing a Place for Learning
The Metrology Center provides a place for university students,
high school students, and local companies to learn how measurement technologies contribute to manufacturing throughour world-class products.

50 Corporate Governance
56 Compliance
58 Risk Management

Environment and Beautification
Hachioji Plant’s Contribution to the Community

Tsuchiura Plant’s Contribution to the Community

Efforts to Promote Energy Conservation

Tsuchiura City Pollution Control Agreement

Associations of factory districts designated for energy management promote the rationalization of energy use in a comprehensive and effective manner through mutual collaborationand information exchange between the Energy Conservation
Center, Japan and the Kanto Bureau of Economy, Trade andIndustry. As our Hachioji Plant was the representative of the“Tokyo association of factory districts designated for energy
management” in fiscal 2022, the plant reported on its activities.

The Tsuchiura Plant has concluded a pollution control agreementwith Tsuchiura City, aimed at the conservation of atmosphericenvironment and water environment, noise and vibration prevention, and the prevention of pollution from business activities.

Hachioji City Adopt-A-Road Program
In this sort of adoption program, local residents and privatecompanies carry out beautification activities for roads, parks,
or other public facilities, caring for these as if their own children, while receiving tools, materials, and support from thelocal governments with jurisdiction over the facilities. Since
2004, the Hachioji Plant has implemented such activities into apart of the curriculum for new employee group education every
year, focusing on the rotary on the east side of JR Kita-Hachioji
Station. In fiscal 2022, program activities were held four times
with 176 people participating.

Nakanuki Park Beautification Activities
The Tsuchiura Plant joins other companies near Nakanuki Park
for weekly cleanups in and around the park. Since 2006, wehave also carried out cleanups on our own across our divisions
in turn every Monday. In fiscal 2022, we did so 50 times withparticipation by a total of 100 employees. Over the years ofthese cleanup activities, awareness has increased among the
local community. Streets around the park that had been coveredin litter have improved markedly. We will continue our activities tohelp beautify public parks and improve public manners.
Tsuchiura Eco-Partner Agreement (Human Development: A City where
Every Person Acts with Consideration of the Environment – Partnership)
In March 2016, the Tsuchiura Plant signed the Tsuchiura
Eco-Partner Agreement, which takes a leading role in reducing
greenhouse gas emissions and waste in the area around thecity of Tsuchiura. The Agreement promotes the efficient use ofelectricity and other energy as well as the reduction of garbage
in business activities, and the initiatives to raise awareness ofenvironmental conservation in the local community.
Eco-partner Agreement, Tsuchiura City municipal website
https://www.city.tsuchiura.lg.jp/page/page014896.html

48

SUSTAINABILITY REPORT 2023

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49

Corporate Governance

Basic Policy on Corporate GovernanceCore Policies(2) The Group respects the rights of shareholders and ensures the equality of shareholders.

(5) T he Group strives to ensure proper information disclosure and transparency.

(3) The Group strives to have constructive dialogue with shareholders on
investment policy that considers mid to long-term returns for shareholders.

Basic Policy on Corporate Governance (in full):
https://www.accretech.com/en/company/basicpolicy.html

Corporate Governance Structure■ Corporate Governance Structure

General Meeting of Shareholders
Appointment/dismissal

Board of Directors

Appointment/dismissal
Briefing

Reply, etc.

(including 2 external directors)

Compensation policy,
Request for consultation
on standards, etc.

Nomination andCompensation
CouncilAudit and Supervisory
Committee(4 members)(including 3 external
directors)

Audit/
oversight

Briefing Briefing

Appointment/dismissal/
oversight

Request for
consultation

Instruction/
oversight

Assistant to Audit and Supervisory
Committee and other members

Representative
Director
Reply

Instruction/oversight

Discussion/
reportBriefing

Instruction/
oversight

Briefing

Instruction

Briefing

Briefing
Briefing

Audit Department
Export Control Department
New Business Planning Department
Management Support Department
Sustainability Department

Executive Officers
Business execution

Instruction/
oversight

Audit/guidance

Briefing
Briefing

Compliance Committee
Risk Compliance Committee
Information Security Committee
Quality Management Committee
Environment Management Committee
Safety and Health Committees
Whistleblower system
Planning/report

Instruction/oversight

The Company has established a Nomination and Compensation Council as a voluntary committee for the purpose of clarifying the independence, objectivity, and accountability of theBoard of Directors functions, especially in nomination of andcompensation to the directors. Independent external corporate
directors are in the majority (now all five members are external
corporate directors) on the council, helping to realize deliberations fully independent from management.
Council Chairman: External Director
Members:	D irectors who are Audit and Supervisory Committee Members andexternal directors
Frequency of meetings : 11
Functions:	Deliberates and reports to the Boardof Directors on matters related tonomination of Directors, including
appointments and dismissals.
		Deliberates on and determines thestandard of compensation amountper post for director compensation
		Deliberates and reports to the Boardof Directors on matters related todirector compensation policies, etc.

Executive Management Meeting and Executive
Officers' Committee
The Company has in place an executive officer system tomake speedy decisions on product development planning to
respond quickly and flexibly to market trends. In addition tosupervising the progress of business plans at regular monthly
meetings of the Executive Management Meeting and Executive Officers' Meeting, the Executive Officers’ Meeting aims toshare information across the Company and enhance Executive
Officers’ Meeting deliberations.

Data/Site Report

Instruction/
oversight

Audit

Briefing

Sustainability Committee

Audit

Executive Management
Meeting
Executive Officers’
Meeting

Accounting Auditor

Determination of appropriateness ofaccounting audits
Decision on appointment/reappointment/
dismissal proposals

Nomination and Compensation Council

GovernanceAppointment/
dismissal/
request for
consultation

Directors not serving as Audit
and Supervisory Committee
Members 8 Directors

Main Agenda Items in FY2022▪ Human resources (executive officer changes/complianceand risk management issues)▪ Important location changes▪ Business planning (development, equipment, personnel,
expenses, etc.)▪ Various audit reports▪ Various policies▪ Assessment of the effectiveness of the Board of Directors, etc.
Specific items▪ Initiatives to improve the effectiveness of the Board of
Directors▪ Check for the existence of problems with the governance system through a related party investigation▪ Verification of cross-shareholdings (ensuring there are no
problems with the governance system)▪ Approval of reports by executive departments concerning the whistleblower system (disciplinary actions, etc.)▪ Approval of reports from the Sustainability Committee▪ Approval of the Sustainability Report and Integrated Report▪ Approval of reports from the Compliance Committee
and Risk Management Committee▪ Donation for humanitarian aid related to the situation in
Ukraine (May)▪ Conclusion of additional consulting contracts related tosustainability activities (July)▪ Formulation and disclosure of the Tokyo Seimitsu Group
Human Rights Policy (July)▪ Participation in SEMI’s Semiconductor Climate Consortium (October)▪ P reparation for publication of Business Partnership
Building Declaration and Multi Stakeholder Policy (November)▪ Conclusion of a consultation agreement for the formulation of a TCFD response strategy and the review/implementation of measures (January)▪ Revision of the Tokyo Seimitsu Human Resource Development Policy (March)

As an independent body, the Audit and Supervisory Committee audits and supervises the execution of business by Directors other than Audit and Supervisory Committee Members.
The Audit Department and the accounting auditor exchange
opinions on the audit system to determine whether there areproblems in auditing, issues, and other matters as needed,and strive to enhance the effectiveness of audits. At the sametime, the Audit and Supervisory Committee receives regular
reports on findings and related information from internal audits
conducted in accordance with the annual audit plan.
Committee Chairman : Internal Director
Members: Four (three external directors in addition
to the Committee Chairman)
Frequency of meetings : O nce every 2-3 months (convened
12 times in FY2022)

Initiatives to Address Social Issues

Company. In addition, the Executive Management Committee
strives to share information and enhance deliberations acrosscompany divisions. In addition, various cross-company committees such as the Risk Management Committee and theCompliance Committee have been established to examine andmonitor material issues from various perspectives to make appropriate decisions.

Tokyo Seimitsu has adopted a company structure with an audit
and supervisory committee.
For dealing with matters that do not fall under the criteria forsubmission to the Board of Directors, the Company has adopted an Executive Officer System to speed up the decision-making process by delegating a large amount of authority to the
Head of each company after defining their scope of duties andauthority in accordance with the relevant regulations of the

The Board of Directors is composed of 8 Directors who are
not Audit and Supervisory Committee members (two of whom
are External Directors) and four directors who are Audit andSupervisory Committee members (of whom three are External
Directors). The Board of Directors holds regular monthly meetings, and extraordinary meetings are also held as necessary.
The Board of Directors convened 17 times in fiscal 2022.
The Board of Directors deliberates on important matters related to management as stipulated by law, the Articles of Incorporation, and the Board of Directors Regulations, as well asmonthly, periodic, and annual business results, and supervises
the execution of business by each director.

Audit and Supervisory Committee

Initiatives to Address Environmental Issues(4) T he Group strives to maintain appropriate collaboration with stakeholders (customers, suppliers, employees, creditors, local communities, etc.) other than shareholders.

(1) The Board of Directors strives to properly perform its roles and responsibilities to make transparent, fair, timely, and committed decisions.

Board of Directors

Sustainability of the Tokyo Seimitsu GroupAs a corporate citizen trusted by the international community, the Tokyo Seimitsu Group recognizes that enhancing corporate governance to develop fair and highly transparent management activities is vital, and, following corporate governance basic policy, is working to build effective corporate governance structures and systems.

Companies (Semiconductor Company, Metrology Company, and Administration Company) and Group subsidiaries

50

SUSTAINABILITY REPORT 2023

SUSTAINABILITY REPORT 2023

51

Corporate GovernanceCompliance Committee

Chairman : President and COO
Frequency :	6 times a year plus extraordinary meetings asnecessary
Functions :	Receives reports on the prevention of the occurrence of potential risks from sections related torisk, etc.
		Reports to the Board of Directors on the agendaof regular committee meetings as necessary		Reports the details of the risk and countermeasures to the Board of Directors the Audit andSupervisory Committee when a report on the materialization of a risk is received and immediately
establishes a Risk Response Team as necessary

Reasons for Appointment of External Directors■ June 2023

Name

Audit and Supervisory IndepenCommittee Member
dentCommittee members officer

KiyoshiTakamasu

Supplementary information

Reasons for appointment—

The Company has designated Mr. Kiyoshi Takamasu as an Independent Director
based on the judgment that there is no risk of conflict of interest with generalshareholders since he has never had a certain interest in the Company, i.e., has no
current or past experience of executing business with a major business partner orshareholder of the Company, or the same corporation, nor does he have any close
relative who has a relationship with the Company.

◦

Environment Management Committee
Chairman : Executive Vice President and CFO
Frequency : Twice a year
Functions :	Deliberates on and promotes environmental management activities performed at the Tsuchiura
Plant and the Hachioji Plant
		Checks status of compliance with environmental
laws and regulations and the progress of environmental impact reduction activities
		Creates and implements Environmental Management System and continuously improves it

KazuyaMori◦

YurikoSagara◦MasakiSunaga◦◦Safety and Health Committee
Tsuneko
Murata◦◦—The Company has designated Ms. Yuriko Sagara as an Independent Director basedon the judgment that there is no risk of conflict of interest with general shareholders
since she has never had a certain interest in the Company, i.e., experience of being
engaged in providing legal, tax, and other consultancy services for the Company, nordoes she have any close relative who has a relationship with the Company.

—

The Company has designated Mr. Masaki Sunaga as an Independent Director
based on the judgment that there is no risk of conflict of interest with general shareholders since he has never had a certain interest in the Company, i.e., been engaged
in providing accounting, auditing, tax, and other consultancy services for the company, nor does he have any close relative who has a relationship with the Company.

Although the Company has transactions Currently, Ms. Tsuneko Murata does not have a certain interest in the Company,
with Panasonic Corporation, where Ms. i.e., she does not execute any business with the Company's major business partMurata was an executive officer in the ners or major shareholders or the same corporation, nor does she have any close
past, those transactions account for less relatives related to the company. She meets the Company's independence criteria
than 2% of consolidated net sales. Ms. and is designated as an independent director because there is no risk of a conflict
Murata retired from Panasonic Corpora- of interest with general shareholders.
tion 10 years ago and is no longer an executive of that company.

■ Constitution of the Board of Directors (Skills Matrix)

◦
◦

◦
◦

◦

◦

◦

◦

◦

◦
◦

◦
◦
◦
◦

◦
◦

◦
◦
◦
◦

◦

◦

◦

◦

◦

◦

◦

◦

◦
◦

◦
◦

◦

◦

◦
◦

◦
◦

◦

◦

◦
◦

◦

◦
Data/Site Report

◦
◦

◦
◦
◦
◦

IT/
information systems

◎◦

◦
◦

Personnel/labor/humanresource development

◎

64

◦

◦
◦
◦
◦
◦

Legal/
risk management

61

Tsuneko Murata◦◦

Measurement technology
Semiconductor sales
Financial institutions
Semiconductor technology
Metrology equipment production
Overseas subsidiarymanagement
Academic
Corporate management
Human resources
Attorney
Certified public accountant/
Tax accountant
Corporate management

Accounting/finance

Masaki Sunaga

International business/grobal experience◎◦

Sales/marketing◎◎Technology/intellectual
property/manufacturing

68
63
59
48

Industry knowledge

Kiyoshi Takamasu
Kazuya Mori
Shinji Akimoto
Yuriko Sagara

Corporate management/
management strategy◦

Nomination andCompensation Council

54

Audit and Supervisory Committee

Romi Pradhan◦◦◦

Board of Directors

63
60
65
61
64

Major pastexperience

Hitoshi Yoshida
Ryuichi Kimura
Koichi Kawamura
Takahiro Hokida
Shuichi Tsukada

Governance

Skills and experiences
External director
Diversity

Chairman :	General Safety and Health Manager (Plant Manager, Tsuchiura Plant and Plant Manager, Hachioji
Plant)
Frequency : Once a month
Functions :	M aintains and improves safe and comfortable
work environments
		Establishes a system for ensuring safety and managing the health of our employees by appointing
legal managers and specialized committees toraise awareness of safety and health in the workplace and to maintain and promote health

Although the Company has transactions Currently, Mr. Mori does not have a certain interest in the Company, i.e., he doeswith Japan Semiconductor Corporation, not execute any business with the Company's major business partners or major
where Mr. Mori was an executive officer in shareholders or the same corporation, nor does he have any close relatives related
the past, those transactions account for to the company. He meets the Company's independence criteria and is designatless than 2% of consolidated net sales. ed as an Independent Director because there is no risk of a conflict of interest with
Mr. Mori retired from Japan Semiconduc- general shareholders.
tor Corporation two years ago and is nolonger an executive of that company.

◦

Age

Chairman : Executive Vice President and CFO
Frequency : Twice a year
Functions :	Establishes information security management systems
		Establishes information security regulations
		Promotes and maintains a system for implementing information security measures, related education and training, regular evaluation, and continuous improvement

Chairman :	Director in Charge of Quality (Executive Vice President and CFO)
Frequency : Twice a year
Functions :	Deliberates on the adequacy and effectiveness ofthe of quality management system		Continuously improves the performance and effectiveness of the quality management system
		Promotes the continuous maintenance and improvement of the quality of our products, services,and operations

External directors.................................................................................................................... 5
Women (percentage of female directors)................................................................................. 2 (16.7%)
Foreigners (percentage of directors holding foreign nationality)................................................ 1 (8.3%)
Diversity (percentage of female directors and directors holding foreign nationality).................. 25.0%

Name

Information Security Committee

Quality Management Committee

Initiatives to Address Social Issues

Risk Management Committee

Diversity of the Board of Directors

Initiatives to Address Environmental Issues

Chairman : Executive Vice President and CFO
Frequency :	Six times a year (seven times in fiscal 2022, including one extraordinary meeting)
Functions :	Revises the ACCRETECH Group Code of Conduct and other rules and regulations
		Deliberates on compliance-related education/
training plans and the status of related initiatives
		Establishes relevant sections and related organizations that deal with major laws, regulations, andsocial norms related to business operations, andensures thorough compliance with laws and regulations		In the event of compliance-related misconduct,
the details and response measures to be taken
shall be reported to the Board of Directors andthe Audit and Supervisory Committee

Sustainability of the Tokyo Seimitsu Group

Various Committees◦◦

Ages current as of the end of June 2023/Independent External Corporate Director: ◎ Female: ◦ Foreign national: ◦Note:This matrix represents the areas in which we expect each Director to have more expertise and play a more active role, based on their experience and otherfactors. This matrix does not represent all the knowledge and experience of each person.

52

SUSTAINABILITY REPORT 2023

SUSTAINABILITY REPORT 2023

53

Corporate Governanceⅱ

The Company has established policies and procedures for determining the amount of remuneration, etc. for directors in its
Basic Policy on Corporate Governance. For details about thepolicy, compensation structure, etc., please refer to the Basic
Policy on Corporate Governance.
Basic Policy on Corporate Governance (in full):
https://www.accretech.com/en/company/basicpolicy.html

Process for Determining Compensationⅰ	The Board of Directors delegates the task of determining
the compensation structure and compensation standards
for each position to the Compensation Planning Committee, consisting of the representative directors and someother directors.

Among the remuneration paid to directors responsible for businessexecution, the formula for restricted stock, which is a medium tolong-term incentive to share profits with shareholders, was revised
to incorporate capital efficiency (ROE).

Total Amount of Consolidated Compensation for Each Officer Category
Officer category

Director (excluding Audit and Supervisory
Committee members and external directors)
Director (Audit and Supervisory Committee member)(excluding external directors)
External director

561

211

250

88

10

99

7

21

21

—

—

—

—

1

38

38

—

—

—

—

6

Total Amount of Consolidated Compensation for Each Officer
Name
Hitoshi
YoshidaRyuichi
KimuraKoichiKawamura

Total amount of
Officer
consolidated compencategory
sation (million yen)142

Director

142

Director

121

Director

Company
category
Reportingcompany
Reportingcompany
ReportingcompanyBasecompensation

Total amount of consolidated compensation by type (million yen)Non-monetary compensation
PerforStock Restricted stock(among forms of compensamance-based
options compensation
tion listed to the left)compensation

60

59

21

2

23

60

59

21

2

23

51

50

18

2

20

Related Party Transactions, Etc.
The Company shall not be engaged in any transactions with
Directors and/or major shareholders that may damage theinterests of the Company or the common interests of theshareholders, as indicated in “(7) Related Party Transactions”
in the Directors and Boards section of the Basic Policy on Corporate Governance. When a Director is intending to enter intoa transaction with the Company for him/herself or for any third
parties, the Director shall obtain prior approval of the Board of

54

SUSTAINABILITY REPORT 2023

Directors according to the rules of the Board of Directors, andreport important facts in that transaction at the board meeting.
Terms and conditions for the transaction may be determined in
the same manner as a transaction with third parties.
To identify any transactions involving a conflict of interest by Directors, the Company checks annually and regularly existenceof such transactions (excluding compensation) between the
Company Group and Directors or their family members within

ple such holdings are reduced. However, if it is determined thatholding of such shares will contribute toward the improvementof medium- to long-term corporate value, they are retained. As
a result of such deliberation, the Company sold 16 cross-shareholdings (including shares subject to deemed holding) for 7,550
million yen between April 2015 and March 2023.

Assessing the Effectiveness of the Board of Directors
The Company conducts questionnaire surveys of all directors(including Audit and Supervisory Committee members) regarding the roles, functions, and operations of the Board of Directors. The Board of Directors discusses among the Internal andExternal Directors the results of the responses being summarized and analyzed, and then the Board of Directors evaluates
its effectiveness and discusses future actions.

1. Method of evaluation
The Company conducts a questionnaire survey of all the Corporate Directors (including those directors who are serving as
Audit and Supervisory Committee members) regarding thefollowing points. After discussions among Internal Directors
and among External Directors, a summary of the results andan analysis are shared at the Meeting of the Board of Directors, to evaluate the effectiveness of the Boards and to discuss
the possibility of further improvement. In order to ensure theeffectiveness and transparency of the survey, an external organization is incorporated in compiling and analyzing the survey
results.
FY2022 Questionnaire Items
7 items, 27 questions in total▪ Roles and functions of the Board of Directors, Constitution and scale of the Board of Directors, Managementof the Board of Directors, and Cooperation with auditingorganizations▪ Relationship with external directors, relationship withshareholders and investors, and progress in the governance system relative to the previous year
The questionnaire includes the evaluation on each item with
open questions on the strength of the Board of Directors andthe areas for its improvement, reflection by individual Directors
on their respective contribution to the Board of Directors andother comments and suggestions.

2. Results of analysis and evaluation of theeffectiveness of the Board of Directors
The results concluded that the effectiveness of the Board of
Directors was largely ensured, as shown in, for example, active
discussions under mutual collaboration of members with diverse experience and expertise, and active discussions among
the Nomination and Compensation Council.
Regarding the issues of last year, specific measures for succession planning and training were formulated based on discussions at the Nomination and Compensation Committee,
and a long-term strategy review committee was established asa forum for discussions on long-term issues.
At the same time, some issues have been identified from thisyear’s questionnaire as follows.
▪ Need for further strengthening of internal control systems
such as group-wide governance▪ Need for further clarification of development and training
plans for Directors and Officers▪ Need for further enhancement of medium- to long-term discussions at Meetings of the Board of Directors (on topics including
our business portfolio, human capital, and IP strategies)▪ Need for discussions to address feedback from shareholders and investors

3. Future actions
In order to strengthen governance throughout the Group, theBoard of Directors of the Company will continue to work tostrengthen and improve the internal control and conduct effective supervision through collaboration. With regard to succession
planning and executive training, discussions will be held by the
Nomination and Compensation Council for further clarification.
In addition, the Company will consider devising management
methods from the viewpoint of enhancing discussions at the
Meetings of the Board of Directors. Furthermore, from theviewpoint of deepening our shareholders' and investors' understanding of our company, we will use the Integrated Reportand other documents prepared in the previous fiscal year to enhance dialogue and share feedback with the Board of Directors
for use in our efforts to achieve sustainable growth in the future.
Through these initiatives, the Company is committed to ensuring further improvement for the effectiveness of the Board of
Directors.

SUSTAINABILITY REPORT 2023

Data/Site Report

Notes 1. The table above only includes officers whose total amount of consolidated compensation, etc. is 100 million yen or more.
2. Amounts indicated with figures below one million yen omitted.

The Board of Directors comprehensively examines whether
shares held as cross-holdings are worthwhile based on risk andreturn from the perspective of medium- to long-term economic
rationality, and qualitative considerations such as the purpose ofholding and credit status. If this examination results in the judgment that it is not worthwhile to retain cross-holdings, in princi-

GovernanceNotes 1. The number of directors (Audit and Supervisory Committee members) includes one person who retired at the conclusion of the 99th Regular Shareholders’ Meeting held on June 20, 2022.
2. The maximum amount of compensation for directors (excluding directors who are Audit and Supervisory Committee members) was resolved at the 98th
Regular Shareholders’ Meeting (held on June 21, 2021) to be no more than 480 million yen per year (including 70 million yen for external directors) and aseparate limit of 300 million yen per year for non-monetary compensation (restricted stock and stock options). At the conclusion of the general meetingof shareholders, there were nine directors (excluding directors who are audit and supervisory committee members) (including two external directors).
3. The maximum amount of remuneration for directors who are members of the Audit and Supervisory Committee was resolved at the 96th Regular
Shareholders’ Meeting (held on June 24, 2019) to be within 60 million yen per year. At the conclusion of the General Meeting of Shareholders, there
were four directors that are Audit and Supervisory Committee members.
4. Individual compensation for directors (excluding directors who are Audit and Supervisory Committee members) is determined by the Board of Directors
after consultation with the Advisory Council in accordance with the basic compensation policies, compensation structure, and decision-making process
for compensation. The Company has determined that this is done in accordance with the basic policy.
5. T he indicator for performance-linked compensation is net profit attributable to owners of the parent that is directly linked to the return of profits to shareholders.

Cross-Shareholdings

Initiatives to Address Social Issues

Total amount of compensation by type (million yen)
Total amount
Number of
Non-monetaryof compenPerforBase
Stock Restricted stock compensation (among officers in thissationcompen- mance-based
category
forms of compensaoptions compensation(million yen)compensation
sationtion listed to the left)

ity commensurate with the importance and scale of the transaction in accordance with internal regulations determined by
the Board of Directors.

Initiatives to Address Environmental Issues

 o ensure transparency and objectivity, the proposal of DiT
rectors’ compensation amounts and related matters (suchas compensation amount per post), and the amount foreach directors’ base compensation, performance-based
compensation and stock compensation shall be deliberated on by the Nomination and Compensation Council,
consisting of directors serving as an Audit and Supervisory
Committee members and external corporate directors.
ⅲ Compensation amounts for directors serving as an Audit
and Supervisory Committee members will be mutually discussed and resolved among directors served as an Audit
and Supervisory Committee members.

the second degree of kinship.
When the Company is intending to enter transactions between
the Company and major shareholders or other related parties,
then it shall be approved in advance by personnel with author-

Sustainability of the Tokyo Seimitsu Group

Director Compensation

55

Compliance

Compliance Management Structure

Compliance Committee
The Compliance Committee engages in reporting and deliberation concerning compliance measures and their implementation status, including revision of the “ACCRETECH Group
Code of Conduct,” enactment and revision of regulations, andplanning for education and training related to compliance. In
the event of violation of or potential conflict with laws and regu-

lations, the committee promptly issues a report to the Board of
Directors and Audit and Supervisory Committee and discusses
response measures and recurrence prevention measures.
In fiscal 2022, the Compliance Committee convened seventimes.

Issues Brought to Light by the Compliance Awareness Survey

Anti-bribery and Anti-corruption
In January 2020 the Tokyo Seimitsu Group announced its Anti-Bribery and Anti-Corruption Policy that follows the provisions of the
ACCRETECH Group Code of Conduct. In fiscal 2022, no violations were found.
Anti-Bribery and Anti-Corruption Policy
https://www.accretech.com/en/company/anti-bribery_anti-corruption_policy.html

Compliance Education

56

SUSTAINABILITY REPORT 2023

▪Officers of the Tokyo Seimitsu
Group▪Employees▪Temporary employees working for
the Tokyo Seimitsu Group(includes persons for whom it has
been less than one year since
resigning, retiring, or having theirdispatch assignment terminated)

Whistleblower
contact point

Notify▪Compliance Committee
members and Secretariat▪Personnel Counseling
Department▪External lawyer▪External directors and directors
who are Audit and Supervisory
Committee members

ReportCompliance Committee

ReportBoard of Directors

Chairman: Executive Vice
President and CFO

Actions That Can be Reported or Consulted on▪ Any action that endangers the safety or health of employees,
business partners, or other stakeholders▪ Actions that cause deterioration or destruction of the local
environment, etc.
▪ Actions that cause serious violations of the Company’s Codeof Conduct, compliance regulations, employment regulations, or other Company rules▪ Various types of harassment▪ Other violations of laws and regulations, inappropriate acts,
or acts contrary to social justice▪ Concealment, destruction of evidence, or leakage of information, related to any of the acts listed in the preceding
items

Compliance Status
In fiscal 2022, evaluations conducted through internal andexternal audits found no illegal behavior, legal violations, compliance violations, or other problems that could affect businessactivities, with regard to adequacy of financial reporting, prod-

uct quality and environmental initiatives, handling of stakeholders inside and outside the Company, and other matters of theTokyo Seimitsu Group.

Accretech Group Company Code of Conduct
Training in Fiscal 2022

Data/Site Report

The Tokyo Seimitsu Group provides varied educational opportunities to enhance knowledge of compliance and to maintainand improve the level of compliance awareness.
Along with “new employee training,” “training for managers,”
and other opportunities for level-specific training, the Company has introduced an e-learning-based training mechanism inJapan. In fiscal 2022, we conducted Compliance education,
including on the ACCRETECH Group Code of Conduct (an ongoing training theme) for all relevant personnel.
In addition, we report regularly to the “Compliance Committee”
on compliance-related training plans and results.

■ Whistleblower System

Governance▪ Need to reinforce efforts related to the compliance system▪ Need to strengthen efforts to eliminate harassment and discrimination▪ Need to enhance efforts to increase awareness of the whistleblower contact point▪ Need to improve the organizational climate, including communication▪ N eed to reduce workloads related to goal setting andamount of operations

In August 2022, Whistleblower System Regulations were revised as follows.
▪ Expanded the scope of whistleblowers in line with the Whistleblower Protection Act▪ Clarified that anonymous reports will not be accepted or rejected based on the fact that they are anonymous▪ Revision made which requires the whistleblower contact aswell as all parties involved in the investigation to keep matters confidential▪ Clarified the prohibition of the provision of false information,
slander, or other improper actions by persons requested tocooperate in the investigation
In fiscal 2022, although there were eight whistleblowing cases,
there were no compliance issues affecting our business activities.

Initiatives to Address Social Issues

The Group conducts a Compliance Awareness Survey to confirm employee awareness and the status of compliance and to reflectsurvey results in future initiatives.

In fiscal 2021, the Company conducted an online, anonymous
survey of all employees in Japan and overseas, and is working
to resolve issues that came to light.

The Group has introduced a whistleblower system to facilitate
reporting and consultation on infractions of laws and regulations, human rights violations, harassment, corrupt practices
such as bribery and other illegal transactions, and other inappropriate behavior. In addition to an employee’s superior, theorganization provides various internal and external contacts,
including Compliance Committee members, the Secretariat,
the Personnel Counseling Department, external lawyers, external directors, and directors serving as Audit and Supervisory
Committee members.
We ensure the anonymity and protection of privacy of whistleblowers, and take care to prevent them from disadvantageous treatment. The content and handling of whistleblower
reports are reported and deliberated in Compliance Committee
meetings.

Target group

Compliance Awareness Survey

FY2021 Questionnaire-based Survey

Whistleblower System

Initiatives to Address Environmental Issues

The Company has established the Compliance Committee, which is chaired by the Company’s Vice President. This committee assigns compliance officers and compliance managers at the Company and each subsidiary.

Sustainability of the Tokyo Seimitsu GroupThe Tokyo Seimitsu Group complies with laws and social norms and acts with integrity and ethics to meet the
expectations of all its stakeholders. To this end, we have established the ACCRETECH Group Code of Conduct,
which sets forth principles of conduct based on our corporate philosophy and the code of conduct that all executives and employees should adhere to. Through this code, we are working to instill and establish an awareness ofcorporate ethics among the Group’s executives and employees.

▪ Number of attendees: 2,974▪ Number of attendees at Group companies including overseas subsidiaries: 1,795▪ Participation rate: 100%SUSTAINABILITY REPORT 2023

57

Risk Management
Sustainability of the Tokyo Seimitsu GroupThe Tokyo Seimitsu Group has established Risk Management Regulations and a Risk Management Committee,
which is headed by the president and COO, to identify and manage risks associated with business execution.
Systems are in place to prevent potential risks from manifesting themselves and to prepare for crises. If a risk
manifests itself, a Risk Response Team headed by the president and COO is immediately established to respondto that risk and take action to quickly settle the situation.

Safety Confirmation System
We have introduced a Safety Confirmation System for confirming people’s safety via mobile phones and smartphones
following a disaster or accident. We explain the system to new
employees and enforce early registration. We carry out operation drills twice a year (in June and December) to confirm thesystem’s effectiveness and to raise awareness of the systemamong all employees, and use the drill results to perform reviews and disseminate information. In fiscal 2022, we continued to collect final response rate and elapsed time data, andimplemented measures for improvement.

Risk Management Policy

Information Security

2. If any risk has become apparent, priority is given to protection and saving of human life.

We believe that it is our responsibility to protect the information
assets entrusted to us by our important customers and business partners as well as our own information assets. Accordingly, we have established the Information Security Policy as a
guideline for information protection. In response to increasingly
complex and sophisticated cyber-attacks in recent years, we
are working to strengthen security for information assets, prevent leaks of confidential company information and personal

Risk Management Policy and Risk Topics
https://www.accretech.com/en/sustainability/esg/risk_management.html

Risk Management System
Risk Management Committee

Risk Items and Content
The following risks are assumed to be the risks surrounding the business.
5. Risks concerning public regulations, policies, and taxation(country risk, etc.)
6.	Risks concerning human resources (industrial accident, unexpected incident or accident, etc.)
7.	Risks concerning capital providers (changes in share ownership, etc.)
8.	Risks concerning IT systems (IT system failure, etc.)
9. 	Risks concerning the quality of products and services
10.	Other risks associated with business execution■ Information Security Targets and Results

Number of regular information exchange meetings on information security
Number of serious incidents
Proper management of personal information, number of serious personal information leaks
Participation in security-related seminars
Provision of specialized security-related training
Information security training participation rate

Result42 times0 incidents
0 incidents
Twice per year
Three times per year99%

■ Information Security System Chart

Board of Directors
President
Risk and Compliance Committee
Information Security Committee(chairman, vice chairman, secretariat, committee members)

Business Continuity Plan

Subcommittees
Semiconductor Company
Oﬃcer in charge of security

Metrology Company
Oﬃcer in charge of security

Administration Company
Oﬃcer in charge of security

Information security
manager

Information security
manager

Information security
manager

Security
subcommittee

Security
subcommittee

IT
Subcommittee

Administration Company

TSE

Information security
manager

Data/Site Report

Human Resources
Department

Metrology Company

ACCT
CSIRT

Security
subcommittee

Accounting and
Finance Department

Technology
Division

Sales
Department

Semiconductor Company

Audit
Subcommittee

Preparing forestablishment

TSS
Technology
Division

FY2022 BCP Performance▪ Reinforced buildings and equipment > Seismic reinforcement work in FY2022: Hachioji ACCT Tower▪ Diversified suppliers of maintenance parts and consumables for semiconductor manufacturing equipment▪ Established a customer allocation plan for in-houseinventory in the event of a disaster for measuring equipment maintenance parts▪ Conducted annual DR (Disaster Recovery)* test of the
ERP system▪ Performed management of stockpiles and storage ateach plant in accordance with rules for managing stockpiles in the event of a major disaster▪ The Hachioji Plant has stockpiles sufficient to supply
1,583 people for three days. The Tsuchiura Plant had
quantities sufficient for 30 people for two days.

Sales
Department

The Group has formulated a business continuity policy thatplaces the highest priority on confirming and ensuring thesafety of employees and their families, maintaining the supplyof parts and materials necessary for customers to continue
operations, and protecting human life and conducting rescue
and recovery activities in the region. We review and adjust theCompany’s business continuity plan (BCP) and plant BCPs on
this basis. In fiscal 2022, as in the previous year, we continued to analyze assumptions of damage and vulnerabilities ofcurrent countermeasures in the event of a threat to each company and plant. Taking changes in the external environment
into account, we reviewed and detailed BCPs and manuals
from a practical standpoint, as well as measures to ensure thecontinuity of product supply and service provision, in addition
to seismic reinforcement measures at the level of each department, including general affairs, production management, manufacturing, and IT.

Target18 times0 incidents
0 incidents
Twice per year
Twice per year
98% or higher

Governance

1. Risks of occurrence of natural disasters and sudden events(earthquake, fire, storm and flood damage, terrorism, etc.)
2.	Risks caused by economic and financial market trends(business trends, fluctuation of currency rates, etc.)
3.	Risks caused by changes in customer investment trends(changes in semiconductor industry, automotive industry, etc.)
4.	Risks caused by competitor and industry trends (pricecompetition, development competition, intellectual property rights, etc.)

information due to the expansion of the scope of traditional
activities, including remote work (working from home), and provide education to improve individual employee literacy. In fiscal
2021, we restructured the Information Security Subcommittee,
assigning a Director in Charge of Security, a Security Manager,
and a Security Subcommittee to each company. Group (consolidated) companies also participate on the committee andwork together to implement security measures.

Initiatives to Address Social Issues

Committee Chairman : Representative Director and COO
Members:C ommittee Chairman, Audit and Supervisory Committee members, Managing Directors, Managing Executive Officers, senior management, group leaders, directors of subsidiaries, department heads, section chiefs, and advisers

Initiatives to Address Environmental Issues

1. The Tokyo Seimitsu Group strives to prevent the occurrence of potential risks. If any risk has become apparent, President & CEO and all employees work in unison to take prompt and prudent action.

Information security
manager

ISMS Secretariat

Aﬃliated companies/overseas subsidiaries* DR (Disaster Recovery): Refers to the ability to mitigate damage, maintainfunctions, or recover and restore an information system that is seriously
damaged by a natural disaster or other events. It also refers to the facilities,
systems, and measures that are in place to prepare for such a situation

58

SUSTAINABILITY REPORT 2023

SUSTAINABILITY REPORT 2023

59

Data/Site Report

Overview of Environmental Impact in Fiscal 2022 (Locations Covered: Hachioji Plant and Tsuchiura Plant)

Tokyo Seimitsu’s Environmental Impact

EnergyAmount of solar
power generation

288,544 GJ

Total
emissions

Recycling rate of wastewaterfrom pure water production
facilities

Gas
Fuel

Fuel
Volatile oil
Kerosene
Light oil

Water Quality Standards
BOD

packaging materials

Nitrogen content
Iodine consumption

Water

164,150 m(groundwater)

Suspended solids● Flowline improvement● Inspection automation● Reduced power

Phosphorus content

21,989 m

142,161 m

n-Hexane extract

consumption

3

Water fromcity water supply
Industrial
water

Manufacturing

Total
waste
emissions

Packaging anddistribution

3●Reuse of packaging
material●Planned operation●Prohibition ofengine idling3

All water intake is provided by city water supply
and groundwater based on surface water

Amount reusedas resources
Final disposal
amountRecycling rate

2.76 t or less1.44 t or less0.81 t or less3.78 t or less0.05 t or less0.07 t or less

1,071t
1,061 t10 t99.0 %●Transport anddelivery equipment●Transport energy

Operationof products●Electric power●Water●Air●Clean room

After-sales
service●Operating rate
●Equipment

service life

FY2022—

248,272 GJ

281,133 GJ

289,397 GJ

288,544 GJ

—
—
—
—

352 GJ
654 GJ
8 GJ
98 GJ

706 GJ
425 GJ
1 GJ
71 GJ

866 GJ
495 GJ
26 GJ
119 GJ

837 GJ305 GJ
18 GJ
342 GJ—
25,765 MWh

247,160 GJ
25,448 MWh

279,930 GJ
28,843 MWh

287,891 GJ
29,835 MWh

287,042 GJ
29,546 MWh

FY2018FY2019FY2020

FY2021

FY2022

12,312 t-CO 2

11,982 t-CO 2

9,524 t-CO 2

8,191 t-CO 2

8,257 t-CO 2

0.160( t-CO 2/million yen)

0.191
( t-CO 2/million yen)

0.129
( t-CO 2/million yen)

0.080
( t-CO 2/million yen)

0.074
( t-CO 2/million yen)

21 t-CO 2

21 t-CO 2

42 t-CO 251 t-CO 2

54 t-CO 2

Fuel

65 t-CO 251 t-CO 2

33 t-CO 2

43 t-CO 2

45 t-CO 2

12,226 t-CO 2

11,910 t-CO 2

9,449 t-CO 2

8,097 t-CO 2

8,158 t-CO 2

Disposal●Environmental

contaminants

Scope1: Direct GHG emissions by the Company (emissions from fuel combustion, on-site power generation, and industrial processes)
Scope2: Indirect emissions resulting from the use of electricity and heat supplied by other companies (e.g. emissions associated with electricity purchased fromelectric power companies)■ Power Generation

Solar power generation

FY2018450.1 MWh

FY2019427.5 MWh

FY2020469.5 MWh

FY2021494.2 MWh

FY2022469.6 MWh

FY2018157,375 m3
22,484 m3

FY2019171,706 m3
26,062 m3

FY2020169,873 m3
20,818 m3

FY2021
163,662 m3
22,144 m3

FY2022
164,150 m3
21,989 m3

134,891 m3

145,644 m3

149,055 m3

141,518 m3

142,161 m3

2.05 (m3/million yen)

2.74 (m3/million yen)

2.29 (m3/million yen)

1.61 (m3/million yen)

1.48 (m3/million yen)

■ Water Usage

Total water usage
City water supply
Industrial water(groundwater)
Production volume
intensity

Note: All of the water we use is from the city water and groundwater based on surface water■ WastewaterIndustrial wastewater(general sewage)
Water Quality Standards
BOD
Nitrogen content
Iodine consumption
Suspended solids
Amount of n-Hexane
extract
Phosphorus content

FY2018FY2019FY2020

FY2021

FY2022

157,375 m3

171,706 m3

169,873 m3

163,662 m3

164,150 m3

—
—
—
—

Below 3.55 t
Below 1.53 t
Below 0.71 t
Below 5.87 t

Below 2.75 t
Below 1.31 t
Below 0.71 t
Below 5.49 t

Below 1.87 t
Below 1.34 t
Below 0.82 t
Below 3.21 t

Below 2.76 t
Below 1.44 t
Below 0.81 t
Below 3.78 t—

Below 0.13 t

Below 0.02 t

Below 0.02 t

Below 0.05 t—

Below 0.09 t

Below 0.06 t

Below 0.06 t

Below 0.07 t

Data/Site Report

Eco-products
Transport
and delivery

FY2021GovernanceTotal usage3

No facilities drain to oceans or rivers.
All eﬄuent is treated as general sewage.

● Green procurement● Reduction of

FY2020

Gas

Electricity

164,150 m

Materials andprocurement

Total CO2 emissions(Scope1 and Scope2)
CO2 emissions production
volume intensity(Scope1 and Scope2)

Details(general sewage)

components

837 GJ305 GJ
18 GJ
342 GJ

Gas (LPG)

8,158 t-CO₂
54 t-CO₂
45 t-CO₂

Plant eﬄuent● Paperless work
● Reduction in

Scope1FY2019Initiatives to Address Social Issues

Development anddesignFY2018■ CO2 Emissions

8,257 t-CO₂

Electricity

17.6%

287,042 GJ

Electricity

CO₂

469.6 MWh

Scope1+Scope2

Scope2
Electricpower

OUTPUT

Total energy use(Scope1 and Scope2)
Scope1
Gas (LPG)
Volatile oil
Kerosene
Light oil
Scope2

Initiatives to Address Environmental Issues

Eco-factory

IN PUT

Total
usage

Sustainability of the Tokyo Seimitsu Group■ Energy Usage

Environment

Note: All effluent is treated as general sewage.

Environmental Impacts at Customers' Sites
60

SUSTAINABILITY REPORT 2023

SUSTAINABILITY REPORT 2023

61

Water recycling rate frompure water production
facilities

FY2018FY2019FY2020

FY2021

FY2022

16.1%

16.3%

17.2%

17.2%

17.6%

Society
Consolidated Employee Overview (Data Provided Current as of March 31 of the Relevant Fiscal Year)■ Number of Employees

■ Paper Usage

FY201927,766 kg

FY202028,622 kg

FY2021
34,234 kg

FY2022
34,489 kg

0.401 (kg/million yen)

0.444 (kg/million yen)

0.386 (kg/million yen)

0.337 (kg/million yen)

0.310 (kg/million yen)

■ Waste Emissions

FY20181,010 t
—
—
—
—
—
—
—
—
—
—

FY2019
905 t
—
—
—
—
—
—
—
—
—
—

FY2020
871 t
—
—
—
—
—
—
—
—
—
—

FY2021
989 t
30.5%
22.1%
9.1%
6.9%
9.7%
9.9%
5.8%
3.7%
0.9%
0.3%

FY2022
1,071 t
26.7%
21.3%
12.2%
10.6%
8.2%
6.8%
6.0%
3.3%
0.8%
0.6%

—

—

—

1.2%

1.0%

999 t

893 t

858 t

975 t

1,061 t

11 t
99.0%

12 t
98.6%

13 t
98.5%

14 t
98.5%

10 t
99.0%

Total number of employees
Total number of regular employees
Japan
Other countries in
Number of regularAsia
employees by
Europeregion
North America/
South America
Semiconductor
manufacturing
equipment
MeasuringNumber of regular instruments
employees byRegular employees
industry sector
who work for boththe Semiconductor
Company andMetrology
Company
Total number of non-regular
employees
Tokyo Seimitsu Co., Ltd.
(non-consolidated basis)
Number of regular employees
Number of non-regular employees
Consolidated subsidiaries
Number of regular employees
Number of non-regular employees

FY2019
3,230
2,250
1,572

FY2020
3,289
2,293
1,584

FY2021
3,477
2,354
1,634

FY2022
3,726
2,468
1,718

551

575

583

592

598

66

67

72

78

92

36

36

54

50

60

1,112

1,146

1,240

1,304

1,355

866

935

881

880

924

141

169

172

170

189

980

980

996

1,123

1,258

1,488

1,522

1,555

1,704

1,837

868
620
1,611
1,251
360

912
610
1,708
1,338
370

944
611
1,734
1,349
385

922
712
1,773
1,432
411

1,054
783
1,889
1,414
475

Initiatives to Address Social Issues

Total waste emissions
Metal scraps
Waste paper
Waste woods
Glass wastes
Plastic wastes
Wood scraps
Waste liquids
SludgeGeneral industrial wastes
Non-combustible waste
Wire scraps and officeappliances
Amount reused asresources
Final disposal amount
Recycling rate

(Unit: persons)
FY2018
3,099
2,119
1,466

Initiatives to Address Environmental Issues

Paper purchasing volume
Production volume
intensity

FY201830,800 kg

Sustainability of the Tokyo Seimitsu Group■ Water Recycling

Scope: Tokyo Seimitsu Group■ Number of Employees by Employment Type (Japan)

FY2018FY2019FY2020

FY2021

FY2022

2,453

2,531

2,582

2,765

2,898

1,466

1,572

1,584

1,634

1,718

987

959

998

1,131

1,180

GovernanceTotal number of
employees
Number of regular
employees
Number of non-regular
employees(Unit: persons)

Scope: T okyo Seimitsu Co., Ltd., Tosei Engineering Corp., Tosei Systems Co., Ltd., Accretech Create Corp., Tosei Box Corp., and Accretech Powertro System Co., Ltd.

■ Female Managers

FY2019FY2020

FY2021

FY2022

—

—

—

—

27

—

—

—

—

5.9%

—

—

—

—

5

—

—

—

—

1.7%

Data/Site Report

Number of female
managers
Percentage of female
managers
Number of female
managers (Japan)
Percentage of female
managers (Japan)(Unit: persons)
FY2018

Scope: Tokyo Seimitsu Group62

SUSTAINABILITY REPORT 2023

SUSTAINABILITY REPORT 2023

63

■ Annual Paid Leave■ Composition of Regular Employees

FY2019FY2020

FY2021

FY2022

40.4

40.0

39.9

39.8

39.6

11.6

11.2

11.2

11.1

11.1

11.8
7.9

11.4
7.8

11.4
7.8

11.4
7.5

11.5
7.3

6.5%

6.4%

6.4%

7.4%

8.5%

Acquisition rate
Rate of taking five or moredays of annual paid leave
Average number of days ofleave taken

FY201866.0%

FY201973.1%

FY202065.9%

FY202169.8%

FY2022
76.7%

—

100%

100%

100%

100%

12.3

13.6

12.2

13.1

14.5

FY2018FY2019FY2020

FY2021

FY2022

21

7

6

14

34

20
1

7
0

6
0

13
1

33
1

FY2018FY2019FY2020

FY2021

FY2022

3

0

5

5

12

0
3

0
0

3
2

5
0

10
2

28

23

34

26

28

25
3

23
0

32
2

26
0

26
2

10.7%

0.0%

14.7%

19.2%

42.9%

0.0%
100%

0.0%
None eligible

9.4%
100%

19.2%
None eligible

38.5%
100%

3

3

2

7

10

0
3

0
3

2
0

6
1

9
1

100%

100%

100%

100%

100%

66.7%

66.7%

100%

85.7%

100%

4

4

4

7

11

0
4

0
4

0
4

1
6

4
7

FY2018FY2019FY2020

FY2021

FY2022

0

0

1

0

0

0
0

0
0

1
0

0
0

0
0

2

1

1

4

9

0
2

0
1

0
1

0
4

3
6

FY2018—FY2019—FY20203385.1

FY20216445.9FY2022
9938.7

—

—

3.6

7.0

9.4

—

—

22,432.3

29,415.3

35,576.5■ Refreshment Leave

Number of employees taking
refreshment leave
Men
Women

(Unit: persons)Initiatives to Address Environmental Issues

FY2018Average age of regular
employees
Average years of service forregular employees
Men
Women
Percentage of female regular
employees

Sustainability of the Tokyo Seimitsu Group

Overview of Tokyo Seimitsu Co., Ltd. (Non-consolidated Basis)(Data Provided Current as of March 31 of the Relevant Fiscal Year)■ Female Managers

FY2018FY2019FY2020

FY2021

FY2022

1.6%

1.5%

1.5%

1.9%

2.4%

Percentage of female
managers■ Recruitment/Employment Data(Unit: persons)
FY2019FY2020

FY2021

FY2022

44

57

43

44

56

37
7
15.9%

49
8
14.0%

40
3
7.0%

34
10
22.7%

45
11
19.6%

46

40

39

50

59

43
3
6.5%

39
1
2.5%

37
2
5.1%

44
6
12.0%

49
10
16.9%

■ Regular Employee Retention and Turnover

FY2019FY2020

FY2021

FY2022

96.4%

80.0%

90.9%

87.7%

88.4%

24

45

33

43

42

2.7%

4.6%

3.3%

4.1%

3.7%
■ Nursing Care Leave/Short-Term Nursing Care Leave■ Employment of Persons with Disabilities

Employment rate*

FY20181.92%

FY20192.04%

FY20201.94%

FY2021
1.95%

FY2022
2.07%

2023
2.17%

one individual with a serious disability is equivalent to employing two less severely disabled individuals for purposes of calculating the number of associates withdisabilities and percentage of employment.

■ Re-Employment System

Number of system users
Men
Women
Re-employment rate (annual)64(Unit: persons)

Data/Site Report* Data depicted in the table are current as of June 1 of each year. The Act to Facilitate the Employment of Persons with Disabilities stipulates that employment of

Number of employees taking
nursing care leave
Men
Women
Number of employees taking
short-term nursing care leave
Men
Women

Governance

FY2018
New graduate retention rate
(three years after entering theCompany)
Number of employees who left
the Company
Turnover rate

Number of employees taking
childcare leave
Men
Women
Number of employees eligible
to take childcare leave
Men
Women
Childcare leave acquisition
rate
Men
Women
Number of employees who
return to work after taking
childcare leave
Men
Women
Percentage of employees who
return to work after taking
childcare leave
Percentage of employees
taking childcare leave systemthat remain in the Company
after returning from leave
Number of employees taking
short-term child-nursing leave
Men
Women

(Unit: persons)Initiatives to Address Social Issues

FY2018
Total number of new
graduates recruited as regular
employees
Men
Women
Percentage of females
Total number of mid-careerhires serving as regular
employees(including those
who were promoted to
become regular employees)
Men
Women
Percentage of females■ Childcare Leave/Short-Term Childcare Leave(Unit: persons)
FY2018
13
13
0
81.3%

SUSTAINABILITY REPORT 2023

FY2019
11
11
0
68.8%

FY202077
058.3%

FY2021
10
10
0
71.4%

FY2022
20
20
0
69.0%

■ Employee Education/Training

Total training hours
Average number of training hours
per person
Education investment per person (yen)SUSTAINABILITY REPORT 2023

65

Site Report

Head Office / Hachioji Plant■ Frequency Rate for Accidents Resulting in Leave

Average for manufacturing
companies in JapanTokyo Seimitsu Co., Ltd.
(non-consolidated basis)
Semiconductor Company
Metrology Company

FY2018FY2019FY2020

FY2021

FY2022

1.20

1.20

1.21

1.31

1.25

0.00

0.71

0.00

0.53

0.26

0.00
0.00

0.97
0.00

0.00
0.00

0.66
0.00

0.33
0.00

Average for manufacturing
companies in JapanTokyo Seimitsu Co., Ltd.
(non-consolidated basis)
Semiconductor Company
Metrology Company

FY2018FY2019FY2020

FY2021

FY2022

0.10

0.10

0.07

0.06

0.08

0.000

0.003

0.000

0.040

0.000

0.000
0.000

0.004
0.000

0.000
0.000

0.050
0.000

0.000
0.000

Business Overview
Tokyo Seimitsu introduced an in-house company system in April 2002
and operates three companies: The Semiconductor Company, Metrology Company, and Administration Company. The Hachioji Plant is thehome of the Semiconductor Company, which develops and manufactures semiconductor manufacturing equipment, and the Administration
Company, which is in charge of administration departments.
The plant was established in 1963 in the Kita-Hachioji Industrial Park
(Ishikawa Industrial Park) located in the northeastern part of Hachioji

Initiatives to Address Environmental Issues■ Severity Rate for Accidents Resulting in Leave■ Location: Hachioji City, Tokyo■ Business segment : Semiconductor manufacturing
equipment■ Facilities: Production facilities, etc.
■ Land: 37,000 m2■ Number of employees : 775 (as of March 31, 2023)■ Business overview : Development, manufacture, andsale of semiconductor manufacturing equipment; provision of related
services

Sustainability of the Tokyo Seimitsu Group

SafetyCity, Tokyo. The production base for semiconductor manufacturing
equipment was gradually moved from Mitaka, where the company was
founded, to Hachioji. After the completion of the first plant, the symbolof the Hachioji Plant, the tallest building in the industrial park, known
as the ACCT Tower, was completed. As of 2023, there were five plants
within the main plant as a result of increasing our production capacity.
In the Semiconductor Manufacturing Equipment Business, we produce
equipment for manufacturing semiconductors. We mainly manufacture
back-end processing equipment, which are used in the latter half ofthe semiconductor manufacturing process, and have expanded into
the conventional wafer manufacturing field as well as the testing, CMPs
(chemical mechanical planarizers), and flaking fields, and are always

Initiatives to Address Social Issues

Governanceworking to develop the latest technologies.
The Hachioji Plant utilizes cellular manufacturing* for production in order to provide equipment tailored to each customer's needs. We also

GovernanceTotal number of serious concerns reported to theBoard of Directors
Total number of cases resulting in legal action
due to anticompetitive behavior and antitrust
violations in which the organization was found to
be involved.
Expenditures for political organizations (yen)Average number of years directors spend in
office (years)
Average attendance rate of Meeting of Board of
Directors (%)

FY2018FY2019FY2020

FY2021

FY2022

0

0

1

0

0

0

0

0

0

0

have an application center within the plant for training and customer
problem-solving, and have a service structure in place.
At the plant, we are actively engaged in the installation of solar panels,
water reuse, and recycling of renewable resources, aiming to create anenvironmentally-friendly plant.

0

0

0

0

8.08

8.54

8.38

8.85

Tsuchiura Plant

99.16

100.0099.57

100.0099.55■ Location: Tsuchiura City, Ibaraki■ Business segment : Precision measuring instruments■ Facilities: Production facilities, etc.
■ Land: 17,000 m2■ Number of employees : 179 (as of March 31, 2023)■ Business overview : Development, manufacture, and saleof precision measuring instruments;
provision of related services

FY2018FY2019FY2020

FY2021

FY2022

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

0

0

0

0

0

Business Overview
The Tsuchiura Plant is the home of the Metrology Company, which develops and manufactures precision measuring instruments, and Tosei
Systems, a Group company that develops system software for those

Governance07.93

Compliance
Ethical standards education and commitment follow
through rate (%)
Percentage of agreements found to comply withinformation security protocols (%)
Total number of sanctions received by theorganization for noncompliance with laws andregulations in the socioeconomic sector* Cellular manufacturing: A manufacturing process which is divided into
detailed divisions of labor, with one worker or a small team of workers
building the product parts and assembling them to completion

products.
The Tsuchiura Plant was established in 1969 in Tsuchiura City, Ibaraki.
As of 2023, four plants comprised the main plant.
In the Precision Measuring Instrument Business, we provide high-precision measuring instruments used in measuring rooms and machining
tooling lines in various industries around the world, including the automotive, heavy duty equipment, and aircraft industries, for which wehave received high praise from our customers. We are constantly developing products to meet the latest needs, such as improving resistanceto environmental factors, creating smaller footprints, and automating

Data/Site Report

operations.
The Company is characterized by the fact that it completes all processes, from development to manufacturing of a single product, at thesame site, and this is also the case at the Tsuchiura Plant. There is alsoa Metrology Center within the plant for training and customer problem-solving, and it has a service structure in place.
We contribute to the development of manufacturing that requires advanced measurement technology, such as automobile, aircraft, medical, and energy industries, which are indispensable for our lives.

66

SUSTAINABILITY REPORT 2023

SUSTAINABILITY REPORT 2023

67

Introduction to Group Companies
Here we introduce companies aﬃliated with the Tokyo Seimitsu Group.

Company Profile

Note: Excludes our employees stationed to other companies; includes
employees of other companies stationed at our companies.

■ URL■ Bases: https://www.toseieng.co.jp/component/en/: Head office, 4 plants and 13 service
bases in Japan, 3 plants and 7 bases
overseas

Company Profile

SUSTAINABILITY REPORT 2023

Accretech Powertro System
Company Profile■ Date of establishment : October 1, 1999
■ Head office: 50 Osaku, Matsukawa, Furudono-machi, Ishikawagun, Fukushima■ Representative : Masahiro Tomoeda, President■ Net sales: 1,373 million yen (FY2023/3)■ Number of employees : 76 (as of March 31, 2023)■ URL: https://www.acct-powertro.jp/■ Bases: 5 bases in Japan, 0 bases overseas

Business Overview
In recent years, climate change brought about by greenhouse gas
emissions has become increasingly apparent, and natural disasters
have been occurring frequently around the world. In particular, internal
combustion engine automobiles and coal-fired thermal power generation are cited as generating large amounts of CO 2, and it is said thatcurbing these emissions is key to saving the global environment. It is
important, therefore, that electric vehicles that do not generate CO 2
spread quickly, along with systems that store electricity from solar
power generation. Lithium-ion and other rechargeable batteries are at
the core of such systems. Accretech Powertro System’s main business is the development and sales of charge/discharge testing systems (used for testing and evaluating rechargeable batteries), as wellas the provision of battery evaluation contract services using its own
equipment. Charge/discharge testing systems are used to evaluate
battery characteristics, performance, and safety by performing charge/
discharge tests under simulated real-world conditions (for example,
for in-vehicle use under various driving conditions). Going forward,
the company expects increasing demand for rechargeable batteries
that are reasonably priced and that offer high performance, long life,and good safety. Accretech Powertro System believes its role lies inthe evolution and development of such batteries, and the company
intends to help maintain a sustainable global environment through its
business.

SUSTAINABILITY REPORT 2023

Data/Site Report

68

Tosei Box is a Tokyo Seimitsu Group company that manufactures,
sells, and provides services for delivery lockers. In the logistics industry, a shortage of truck drivers is expected due to the application of
restrictions on overtime work, so it is essential for logistic companies toimprove delivery efficiency. Although the number of parcel deliveries willcontinue to increase, preventing re-delivery will reduce the burden on
delivery staff as well as CO 2 emissions.
In addition, in consideration of the impact of COVID-19 and security, an
increasing number of customers are avoiding in-person pickups, one of
the many new types of demands for delivery lockers.
Therefore, we believe that the popularization of delivery lockers serves
as a business that contributes greatly to society, and offer a variety oftypes to make it easier for customers to install them. Now customers
have many delivery locker options available, such as non-contact IC
card-based access, facial recognition-based access, vein recognition-based access, e-mail notifications, and other functions as well as
color and stainless steel specifications in order to match delivery lockers with entrances.
As a Tokyo Seimitsu Group company, we will create a healthy andsafe work environment through employee education such as e-learning-based Code of Conduct education, business improvement, etc.,
share the social significance of our business with all employees, andcontribute to the creation of a sustainable environment and society.

■ Date of establishment : October 1, 1985
■ Head office: 2968-2 Ishikawa-machi, Hachioji-shi,
Tokyo (inside Tokyo Seimitsu Plant)■ Representative : Koichi Kawamura, President■ Net sales: 3,347 million yen (FY2022/3)■ Number of employees : 157 (as of March 31, 2023)■ URL: https://www.toseisystems.co.jp/■ Bases: 2 bases in Japan, 0 bases overseas

Tosei Systems is a Tokyo Seimitsu Group company that supports Tokyo Seimitsu's product development in the software field.
Tosei Systems contributes to high-quality and safe manufacturing by
developing embedded software that controls equipment and Windows
applications incidental to equipment, mainly for Tokyo Seimitsu’s semiconductor manufacturing equipment and measuring equipment, as wellas the products of affiliated companies.
The company is also involved in the development and operational support of core systems (ERP) and is responsible for the overall software
operations of the Tokyo Seimitsu Group, helping to ensure its security
by contributing to the maintenance and management of the system.
In order to secure human resources to perform the wide range of tasks
that support Tokyo Seimitsu, we are considering the suitability of software and are recruiting new graduates and mid-career recruits regardless of type of undergraduate degree or their gender.
At the same time, we aim to maintain ongoing relationships with schools
and laboratories to acquire human resources for highly challenging tasks,
such as software development for high-precision equipment.
Tosei Systems focuses on training new graduates, starting with a mentor system to follow up on job offers. This is followed by three monthsof training, including outside training, after new recruits join the company. In the last ten years, the employee turnover rate for the three years
after joining the company has been zero.
In addition, we aim to create a culture that encourages employees totake advantage of systems that support life events. This fiscal year, thematernity leave acquisition rate was 100%. Most recently, we conducted training on the prevention pregnancy discrimination, discrimination
against fathers who take paternal leave, and discrimination against employees who take nursing care leave designed for managers, deepening their understanding regarding preparing employees and workplaces
so that leave can be taken.

Governance■ Date of establishment : September 1, 2001
■ Head office: 1-22-17 Akebono-cho, Tachikawa-shi,Tokyo■ Representative : Shuichi Yako, President■ Net Sales: 1,329 million yen (FY2023/3)■ Number of employees : 47 (as of March 31, 2023)■ URL: https://www.toseibox.com■ Bases: 4 bases in Japan, 0 bases overseas

Business Overview

Company Profile

Business Overview

Initiatives to Address Social Issues

Tosei Box Corp.

Tosei Engineering, a wholly owned consolidated subsidiary of Tokyo
Seimitsu, services Tokyo Seimitsu’s measurement products, develops
and manufactures automatic and labor-saving measurement equipment, and develops and manufactures semiconductor manufacturing
equipment. The company has three main businesses: the automatic
measurement, semiconductor manufacturing equipment, and service
businesses. In the automatic measurement business, it provides automatic measuring instruments for automobile and home appliance production lines. In the semiconductor manufacturing equipment business,the company develops and manufactures wafer chamfering machines
and other equipment. In the service business, the company calibrates,
repairs, and maintains measuring instruments, and has established a
network of industry-leading service bases.
Since its founding, Tosei Engineering has helped to address customers’issues by providing various precision instruments and servicing measuring instruments based on the idea of “No measurement, no manufacturing”. To deliver safe and reliable products to all its customers, thecompany works to realize a sustainable society that respects people
and the global environment, including by reducing its impact on theenvironment. In May 2020, Tosei Engineering established an integrated
management system and obtained certification under both ISO 9001
and ISO 14001 at the Kandatsu Plant, which functions as the head
office. In May 2022, Tosei Engineering’s Niigata Plant obtained bothcertifications, and in fiscal 2023, the Nagoya Plant was certified (acquiredin May). All three of these plants are strengthening continuous improvement through the management system. The company contributes tothe local community and meets the needs of its customers by balancing
environmental conservation with product safety and high quality. Tosei
Engineering also engages actively in companywide occupational healthand safety activities aimed at maintaining a healthy and comfortable
work environment and promoting a more sustainable workplace.

Tosei Systems Co., Ltd.

Initiatives to Address Environmental Issues■ Date of establishment : April 15, 1969
■ Head office:4
 -6 Higashinakanuki-machi, Tsuchiura-shi, Ibaraki■ Representative : Katsushi Goto
■ Net sales: 16,143 million yen (FY2022/3)■ Number of employees : 589 (as of March 31, 2022)

Business Overview

Sustainability of the Tokyo Seimitsu Group

Tosei Engineering Corp.

69

GRI Standards Content Index

GRI Standards

Disclosures

References

General Disclosures 2021
1. The organization and its
reporting practices

GRI Standards

Disclosures

References

201-1

Direct economic value generated and distributed

Securities report (PDF)

201-2

Financial implications and other risks and opportunities due to climate change

TCFD Response (P22-23)

201-3

Defined benefit plan obligations and other retirement plans

Securities report (PDF)

201-4

Financial assistance received from government

—

202-1

Ratios of standard entry level employee wage by gendercompared to local minimum wage

—

202-2

Proportion of senior management hired from the local community—

GRI 201: Economic Performance 2016

Company Profile (P74)
Securities report (PDF)

2‑2

Entities included in the organization’s sustainability reporting

Editorial Policy (P75)

2‑3Reporting period, frequency, and contact point

Editorial Policy (P75)
Back cover

2‑4

Restatements of information

2‑5

External assurance

GRI 203: Indirect Economic Impacts 2016

Securities report (PDF)
—

203-1

Infrastructure investments and services supported

203-2

Significant indirect economic impacts

Social Contribution (P48)—

Proportion of spending on local suppliers—

GRI 204: Procurement Practices 2016
204-1
GRI 205: Anti-corruption 2016

2‑6

Activities, value chain, and other business relationships

Securities report (PDF)

2‑7

Employees

Consolidated Employee Overview (P63)2‑8Workers who are not employees—

3. Governance

—

205-1

Operations assessed for risks related to corruption

205-2

Communication and training on anti-corruption policies and procedures

205-3

Confirmed incidents of corruption and actions taken

Compliance (P56-57)—

GRI206: Anti-competitive Behavior 2016

Governance structure and composition

Corporate Governance (P50)

2‑10Nomination and selection of the highest governance body

Diversity of the Board of Directors (P53)
Corporate Governance Report (PDF)

2‑11

Chair of the highest governance body

Board of Directors (P51)

207-1

Approach to tax—

Role of the highest governance body in overseeing the management of
impacts

Sustainability Promotion Structure (P12)
Stakeholder Engagement (P14-17)
Board of Directors (P51)207-2

Tax governance, control, and risk management

—

207-3

Stakeholder engagement and management of concerns related to tax

—

207-4

Country-by-country reporting——

Legal actions for anti-competitive behavior, anti-trust, and monopoly practices

206-1

Governance (P66)

GRI207: Tax 2019

2‑13

Delegation of responsibility for managing impacts

2‑14Role of the highest governance body in sustainability reporting

2‑15

Conflicts of interest

Related Party Transactions, Etc. (P54)

2‑16Communication of critical concerns

Whistleblower System (P57)

2-17Collective knowledge of the highest governance body

Constitution of the Board of Directors (Skills Matrix) (P53)

2-18

Evaluation of the performance of the highest governance body

Assessing the Effectiveness of the Board of
Directors (P55)

GRI301: Materials 2016
Materials used by weight or volume

Remuneration policies

Director Compensation (P54)
Corporate Governance Report (PDF)

301-1

2-19

—

301-2

Recycled input materials used

—

2-20

Process to determine remuneration

Process for Determining Compensation (P54)301-3

Reclaimed products and their packaging materials

—

2-21

Annual total compensation ratio

Board of Directors (P51)—

Policy commitments
Embedding policy commitments

2-24

GRI Standards

Message from CEO (P6)
Message from COO (P8)
Message from CEO (P6)
Message from COO (P8)Tokyo Seimitsu Group Human Rights Policy (P30)

Energy consumption within the organization

Processes to remediate negative impacts

2-26

Mechanisms for seeking advice and raising concerns

Whistleblower System (P57)

2-27Compliance with laws and regulations

Compliance Status (P57)

2-28

Membership associations

Participation in Industry Groups (P16)2-29

Approach to stakeholder engagement

Stakeholder Engagement (P14)2-30Collective bargaining agreements

Consideration of Human Rights and Compliancewith Labor-related Laws and Regulations (P31)

5. Stakeholder engagement

Tokyo Seimitsu’s Environmental Impact (P60)
Energy Usage (P61)

302-2

Energy consumption outside of the organization—

Energy intensity

—

302-4

Reduction of energy consumption

Climate Change (P20-21)
TCFD Response > Indicators and Goals (P23)Tokyo Seimitsu’s Environmental Impact (P60)

302-5

Reductions in energy requirements of products and services

Eco-products (Environmental Contribution through Products) (P20)
Environmental Contribution through the Provision of
Products (Eco-products) (P24-25)

303-1

Interactions with water as a shared resource

Water Resources (P27)

303-2Management of water discharge-related impacts

Water Resources (P27)
Chemical Substances Control (P28)Tokyo Seimitsu’s Environmental Impact (P60)
Wastewater (P61)

303-3

Water withdrawal

Water Resources (P27)Tokyo Seimitsu’s Environmental Impact (P60)
Water Usage (P61)

303-4

Water discharge

Water Resources (P27)
Chemical Substances Control (P28)Tokyo Seimitsu’s Environmental Impact (P60)
Wastewater (P61)

303-5

Water consumption

Water Resources (P27)Tokyo Seimitsu’s Environmental Impact (P60)
Water Usage (P61)

GRI303:
Water and Effluents 2018

SUSTAINABILITY REPORT 2023

Data/Site Report

2-25

References

302-3

—
Tokyo Seimitsu Group Human Rights Policy (P30)
Whistleblower System (P57)

SUSTAINABILITY REPORT 2023

Disclosures

GRI302: Energy 2016
302-1

Statement on sustainable development strategy

2-23■ Environment

Governance

4. Strategy, policies and practices
2-22

Initiatives to Address Social Issues

2‑12

Initiatives to Address Environmental Issues

Organizational details

2. Activities and workers

70■ Economy

202: Market Presence 2016

2‑1

2‑9

Sustainability of the Tokyo Seimitsu Group[Statement of use]	Tokyo Seimitsu Group reports the information listed in the content index in accordance with
the GRI Standards for the period April 1, 2022 to March 31, 2023.
[GRI 1 used]
GRI1: Foundation 2021

71

GRI Standards Content Index

Disclosures

GRI Standards

References

304-1

Operational sites owned, leased, managed in, or adjacent to, protectedareas and areas of high biodiversity value outside protected areas

—

304-2

Significant impacts of activities, products, and services on biodiversity

—

304-3

Habitats protected or restored

—

304-4

IUCN Red List species and national conservation list species with
habitats in areas affected by operations—

Disclosures

References

403-5

Worker training on occupational health and safety

Occupational Health and Safety >Education and Training (P40)403-6

Promotion of worker health

Health Management (P42-43)

403-7

Prevention and mitigation of occupational health and safety impacts directly
linked by business relationships

403-8

Workers covered by an occupational health and safety management system——

Work-related injuries

403-10Work-related ill healthOccupational Accidents (P38)
Health Checkups and Stress Level Check System (P42)
Measures to Address Long Working Hours (P43)404-1

Average hours of training per year per employee

Human Resource Development >Education and Training (P46)
Employee Education/Training (P65)

GHG emissions intensity

Climate Change > CO 2 Emissions (P20)
TCFD Response > Indicators and Goals (P23)
Data > CO 2 Emissions (P61)

404-2

305-5

Reduction of GHG emissions

Eco-Factory (environmentally-friendly factories) (P20)Management of Environmental Impact on the Atmosphere (P21)
TCFD Response > Indicators and Goals (P23)

Human Resource Development >Education and Training (P46)
Programs for upgrading employee skills and transition assistance programs
Self-Development Support System (P47)
Re-Employment System for Retirees (P48)

404-3

305-6

Emissions of ozone-depleting substances (ODS)

Percentage of employees receiving regular performance and careerdevelopment reviews

305-7

Nitrogen oxides (NOx), sulfur oxides (SOx), and other significant air emissions

Chemical Substances Control (P28)306-1

Waste generation and significant waste-related impacts

Resource Recycling and Waste Reduction (P26)Tokyo Seimitsu’s Environmental Impact (P60)

306-2Management of significant waste-related impacts

Resource Recycling and Waste Reduction (P26)306-3

Waste generated

Resource Recycling and Waste Reduction (P26)Tokyo Seimitsu’s Environmental Impact (P60)
Waste Emissions (P62)306-4

Waste diverted from disposal

Resource Recycling and Waste Reduction (P26)Tokyo Seimitsu’s Environmental Impact (P60)
Waste Emissions (P62)306-5

Waste directed to disposal

Resource Recycling and Waste Reduction (P26)Tokyo Seimitsu’s Environmental Impact (P60)
Waste Emissions (P62)305-1

Direct (Scope1) GHG emissions

Climate Change (P20)
Tokyo Seimitsu’s Environmental Impact (P60)
CO 2 Emissions (P61)305-2

Energy indirect (Scope2) GHG emissions

Climate Change (P20)
Tokyo Seimitsu’s Environmental Impact (P60)
CO 2 Emissions (P61)—

Other indirect (Scope3) GHG emissions

305-3
305-4

—

GRI308:Supplier Environmental
Assessment 2016

GRI404: Training and Education 2016

GRI405: Diversity and Equal
Opportunity 2016308-1

New suppliers that were screened using environmental criteria
Negative environmental impacts in the supply chain and actions taken

Diversity of the Board of Directors (P53)
Diversity & Inclusion > Result (P44)405-1

Diversity of governance bodies and employees

405-2

Ratio of basic salary and remuneration of women to men—

Incidents of discrimination and corrective actions taken—

GRI406: Non-discrimination 2016
406-1
GRI407: Freedom of Association
and Collective Bargaining 2016
407-1

Operations and suppliers in which the right to freedom of association andcollective bargaining may be at risk

Human Rights Due Diligence (P31)

Operations and suppliers at significant risk for incidents of child labor

Human Rights Due Diligence (P31)

Operations and suppliers at significant risk for incidents of forced orcompulsory labor

Human Rights Due Diligence (P31)

GRI408: Child Labor 2016
408-1
GRI409: Forced or Compulsory Labor 2016
409-1

308-2

—

Initiatives to Address Social Issues

GRI306: Waste 2020

Initiatives to Address Environmental Issues

403-9

Occupational Accidents (P38)
Safety (P66)

GRI305: Emissions 2016

Sustainability of the Tokyo Seimitsu GroupGRI Standards
GRI304: Biodiversity 2016

GRI410: Security Practices 2016—
Supply Chain Management (P36-37)

410-1

Security personnel trained in human rights policies or procedures—

Incidents of violations involving rights of indigenous peoples

—

411-1

■ Social

GRI413: Local Communities 2016
GRI Standards

Disclosures

References

GRI 401: Employment 2016
401-1

New employee hires and employee turnover

Regular Employee Retention and Turnover (P64)

401-2

Benefits provided to full-time employees that are not provided to temporary
or part-time employees

Work-Life Balance > Result (P45)

Parental leave

Work-Life Balance > Result and Main
Support Systems (P45)Childcare Leave/short-term child-nursing leave (P65)

401-3

—

GRI403:
Occupational Health and Safety 2018

403-2

72

Operations with local community engagement, impact assessments, anddevelopment programs

413-2

Operations with significant actual and potential negative impacts on local communities

Environment and Beautification (P48)—

GRI414:
Supplier Social Assessment 2016
—

414-1

New suppliers that were screened using social criteria

414-2

Negative social impacts in the supply chain and actions taken

Human Rights Due Diligence (P31)

Political contributions

Compliance (P66)

GRI415: Public Policy 2016
415-1

Minimum notice periods regarding operational changes

402-1

413-1

GRI416: Customer Health and Safety 2016
416-1

Assessment of the health and safety impacts of product and service categories

—

416-2

Incidents of non-compliance concerning the health and safety impacts ofproducts and services—

Occupational health and safety management system

Occupational Health and Safety (P38-41)

GRI417: Marketing and Labeling 2016
417-1

Requirements for product and service information and labeling

Hazard identification, risk assessment, and incident investigation

Risk Assessments at Work Sites (P39)
Disaster and Accident Prevention and
Handling of Chemicals and Chemical
Substances (P41)417-2

Incidents of non-compliance concerning product and service information and labeling

—

417-3

Incidents of non-compliance concerning marketing communications

—

403-3

Occupational health services

403-4

Worker participation, consultation, and communication on occupational
health and safety

SUSTAINABILITY REPORT 2023—
Occupational Health and Safety >Promotion Structure (P39)

Data/Site Report

GRI402:
Labor/Management Relations 2016403-1

Governance

GRI411:
Rights of Indigenous Peoples 2016

Quality (P32-35)

GRI418: Customer Privacy 2016
418-1

Substantiated complaints concerning breaches of customer privacy andlosses of customer data

Information Security (P59)
Compliance (P66)

SUSTAINABILITY REPORT 2023

73

Company ProﬁleCompany name
URL
Head office
Established
Paid-in capital: Tokyo Seimitsu Co., Ltd.
: https://www.accretech.com/en/: 2968-2 Ishikawa-machi, Hachioji-shi, Tokyo: March 28, 1949:	11,064 million yen (as of March 31, 2023)

Number of employees :	1,054 (non-consolidated),
2,468 (consolidated)(as of March 31, 2023)
Major business lines :	Manufacture and sales of semiconductor
manufacturing equipment and precision
measuring instruments■ Net sales(million yen)
10,000(million yen)
15,000

7,469

8,000

101,520

4,000

6,000

2,000

3,000

2018

2020

2021

9,793

9,725

2021

2022
(FY)

7,477
5,950

0

2022
(FY)

2018

2019

2020

97,10587,927112,365(yen)

Earnings per share (EPS)Dividend per share (ordinary dividend)
Dividend payout ratio

2019

2020

2021

720

instruments■ Semiconductor
manufacturing equipment

2022
(FY)

Operating margin

50,00021.7

19.9
40,00014.0

30,000

16.0

23.5

（％）
25

(million yen)
40,00034,49420

32,00015

24,00028,327
15,562

10,000

2018

2019

2020

2021

2022
(FY)

10

16,000

5

8,000

0

0

35.4

35.4
522.52352.921252018293.83185

171.89
76

104

2019

2020

2021

581.33

40

20
10

2022
(FY)

Cash flows frominvesting activities

Free cash flows

22,06220,00030

235(million yen)
25,000Cash flows fromfinancing activities

023,837

16,871

15,000 12,932
10,0005,443 5,965

5,000
0-5,000-10,000-15,000

14,8471,000△151△1,020△6,116△5,191△6,375△8,282△8,990△13,952△10,3462018

35,297

2019

2020

2021

△2,174△7,421△8,421

2022(FY)

29,160

Editorial Policy

20,805
15,867
12,360

2018

2019

2020

2021

Governance

20,221
12,282360

0Operating profit

35.4

40.3

540

180

■ Recurring profit■ Operating profit & operating margin

44.2

（％）
50

Cash flows fromoperating activities

Initiatives to Address Social Issues(million yen)
■ Precision measuring
2018■ Cash flows

dividend payout ratio

900

0

2019

13,872

12,000

7,193■ Net profits per share, dividend per share,

30,00020,000

8,542

9,000

0

34,43660,000(million yen)

8,146

146,801130,702

90,000

0

8,234

6,000

■ FY2022 net sales by business segment(million yen)
150,000
120,000■ Capital expenditures

Initiatives to Address Environmental Issues

Financial Data

■ R&D expenditures

Sustainability of the Tokyo Seimitsu Group

Company Information

Tokyo Seimitsu publishes its Sustainability Report every year with the aim of fostering understanding of the Group's sustainability initiatives andenhancing opportunities for communication with all stakeholders. The 2023 Sustainability Report intends to provide exhaustive information,
mainly on activities related to environmental issues, social issues, and governance conducted during fiscal 2022.
In addition to the Sustainability Report, annual reports available from Tokyo
Seimitsu include the Integrated Report that mainly covers short-, mediumOverview of Information Disclosureof the Tokyo Seimitsu Groupand long-term strategies and the approach of management targets, andthe Securities Report that mainly provides financial reports, complemented by the corporate site containing the most up-to-date information.

2022
(FY)

Tokyo Seimitsu■ Net profit attributable to owners of the■ Net assets & equity ratio

parent & return on equity (ROE)

Organizations covered

Net profit attributable to owners of the parent

28,000Return on equity (ROE)
17.4
14.4
10.9

21,00014,00014,66574

23,63012,175

7,156

7,000
0

6.7

21,326

17.3

2018

2019

2020

SUSTAINABILITY REPORT 2023

2021

2022
(FY)

（％）
20

(million yen)
300,000

16

240,000

12

180,000

Net assets

67.3

73.9

（％）
100

Equity ratio

71.4

116,777

68.1

69.0

80

146,02860

131,0818

120,000

4

60,00020

Period covered
In principle, the report covers activities from April 1, 2022 to March 31, 2023. It
also includes some ongoing initiatives from before the reporting period and after
April 2023.

0

0

0

Reference Guidelines:
The GRI (Global Reporting Initiative) Standards, ISO 26000

107,403 109,674

2018

2019

2020

40

2021

2022
(FY)

SUSTAINABILITYREPORT 2023
INTEGRATED REPORT
2022

Data/Site Report(million yen)
35,000Tokyo Seimitsu Co., Ltd. : S emiconductor Company (Hachioji Plant, 3sales offices in Japan), Metrology Company(Tsuchiura Plant, 14 sales offices in Japan),
Administration Company
Affiliated Companies: Tosei Engineering Corp., Tosei Systems Co.,
Ltd., Tosei Box Corp., Accretech Powertro
System Co., Ltd.

Tokyo Seimitsu Co., Ltd.

Sustainability Report

Integrated Report

Securities Report

Corporate Site
https://www.accretech.com/en/

SUSTAINABILITY REPORT 2023

75