CSR-oriented operations
Stakeholder engagement
Continued dialogue and collaboration with stakeholders is important in order for TEL to provide new value through our businessand to build trusting relationships. We will disclose information with a high degree of transparency in a timely manner and reflect
the opinions and wishes of our stakeholders in business activities as we endeavor to improve our corporate value.

CSR policy
The CSR operations of Tokyo Electron (TEL) are initiatives that realize TEL’s Corporate Philosophy. We pursue sustainable
operations from the viewpoints of corporate governance, legal and regulatory compliance, and business ethics while creating newvalue through our products and services. Based on these efforts, we implement CSR activities to help address social issues. We willcontinue to pursue CSR activities to build stakeholder trust, improve corporate value and, by doing so, promote the growth of asustainable and dream-inspiring society.

Stakeholders

Shareholders/investors

Communication opportunities
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Customers

Sustainable operations
Materialissues

Through business activities
Creation of new valueContributionto the solutionof socialproblems

Advancement ofdream-inspiring
society

Reinvest

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Distribute to shareholders
and employees

Improvement ofcorporate value
Pay taxes

CSR-oriented operations

Suppliers

Distribution of profit

Employees

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Local communities

Governments/associations

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Earnings announcement
ESG surveys
Interviews
Technology conference
Customer satisfaction survey
Individual technology collaboration
Production update briefing
Partners day
STQA* audit
Employee meetings
Global engagement survey
Career interest survey (Japan)
Community contribution activities
Tours of factories and offices
Industry group activities
Collaboration with various initiatives

Key opinions and requests
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Relevant material issues

Measures for increasing corporate value over the medium- to long-term
Corporate governance initiatives
Medium- to long-term stance on reducing environmental impact
Accurate understanding of customer needs
Proposal of high-value-added solutions
Strengthening engagement from an earlier stage

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Development of systems leading to motivation and job satisfaction
Support for medium- to long-term career planning
Initiatives for higher productivity

Creation of innovation leading to the resolution of social issues
Initiatives for respect for human rights
Responsible procurement

Greater promotion of collaborative systems
Increased opportunities for communication

Community revitalization
Creation of employment opportunities
Environmentally friendly operations

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Product competitiveness
Higher productivity
Management foundation
Product competitivenessResponsiveness to customers
Higher productivity
Higher productivity
Management foundation
People and workplaces
Management foundation
People and workplaces
Management foundation
Product competitiveness
People and workplaces
Management foundation* STQA: Supplier Total Quality Assessment

CSR promotion framework
TEL implements sustainability management which is integrated into management strategy from a medium- to long-termperspective. Company-wide CSR policies are set at the CSR management council with the participation of management. The CSR
global promotion conference then sets CSR targets and company-wide initiatives based on these policies. The progress and dayto-day CSR activities are shared at the CSR monthly meeting as we build cooperative systems across the company.
Conference nameParticipantsCSR Management Council

CSR Global Promotion Committee

CSR Monthly Meeting

Chairman of the Board
President and CEO
Directors and Managers
Chief CSR Director
Heads of related departments
CSR officers of affiliates and overseas companies
Person in charge of CSR at each division

Function

Meeting frequency

Decide company-wide CSR policy
Discuss important matters

Twice annually

Set CSR targets
Implement global projects

Twice annually

Share information on CSR activities
Discuss cross-division CSR initiatives

Third-party evaluation
TEL’s CSR activities have been evaluated as medium- to long-term initiatives to increase its corporate value and have been
selected as a constituent stock index under leading global CSR and ESG investment bodies.
Following from fiscal year 2017, in fiscal year 2018, TEL was again selected as constituent stock under DJSI1 Asia Pacific 2017, andunder the FTSE4 Good2 and MSCI World ESG Leaders Index. Furthermore, we were also selected for the FTSE Blossom Japan Index
and MSCI Japan ESG Select Leaders Index, which are ESG indices designated by GPIF.3

Monthly
1 DJSI (Dow Jones Sustainability Index): Environmental, social and governance (ESG) investment indices developed by U.S.-based S&P Dow Jones Indices LLC and Switzerland-based RobecoSAM AG. The Asia
Pacific index covers companies in that region.
2 FTSE4Good: An index related to environmental performance and corporate social responsibility developed by the UK-based FTSE Group

Participation in initiatives
UN Global Compact
The UN Global Compact (UNGC) is a global initiative to encourage businesses and otherorganizations to act in a socially responsible manner in order to realize sustainablegrowth. It requires participating organizations to exercise responsible and creativeleadership in the four issue areas of human rights, labor, environment and anticorruption. TEL declared its endorsement in 2013, supporting the UNGC’s Ten Principles.

3 GPIF (Government Pension Investment Fund): An independent administrative agency for pension reserve fund management in Japan, which operates one of the world’s largest public pension reserve funds

Internal initiatives—CSR Promotion Award
In order to promote CSR initiatives within the company, we invite contributions fromemployees worldwide of cases of CSR in the workplace that contribute to resolving issues inthe industry and society. We assess these in terms of their alignment with SDGs, resolution

Responsible Business Alliance (RBA)
RBA consists of leading electronics companies dedicated to promoting CSR in their
supply chains. The RBA has a common Code of Conduct governing such areas as labor,
environment, safety and health, and ethics. TEL joined the alliance in 2015, and has
been taking measures to improve sustainability of its supply chain ever since.

7TOKYO ELECTRON SUSTAINABILITY REPORT 2018of social issues, contribution to corporate value and other aspects, and confer one CSR
Promotion Award and four CSR Merit Awards.

TOKYO ELECTRON SUSTAINABILITY REPORT 20188