Environmental
Sustainability Report 2004

Environmental Sustainability Report

Contents
Contents, Editorial Policy, Scope

2

Editorial Policy

Corporate Profile

3

This Environmental Sustainability Report marks our fifth yearof publication. We put this report together with the intention of
making it easy to read, easy to understand and something tofacilitate your understanding of Tokyo Electron (TEL)’s efforts in
FY2004 in the areas of the environment, health and safety, as
well as our social contribution activities. Here our president andCEO has also explained in his own words the view we take ofCSR (Corporate Social Responsibility). We would like to enhancecommunication with all individuals engaged with TEL throughthis report. We welcome your comments and opinions so that
we may reflect them in our future editorial policies.
We have referenced the Environmental Reporting Guidelines(2003), published by the Environment Ministry, and the 2002
Sustainability Reporting Guidelines, published by GRI (Global
Reporting Initiative), an organization that formulates internationalsustainability report guidelines, in creating this report.

Highlights
Toward Promoting CSR

4

TEL’s Products

6

TEL’s Business

8

Environmental Report
Scope
EHS Management

10

Environmental Accounting

11

EHS Activity Targets and Results

12

Environmental Activities of TEL Companies

13

Organizations covered: Tokyo Electron Group<Japan>Tokyo Electron Ltd., Tokyo Electron AT Ltd.,Tokyo Electron Kyushu Ltd., Tokyo Electron Software Technologies Ltd.,Tokyo Electron FE Ltd., Tokyo Electron Device Ltd.,Tokyo Electron BP Ltd., Tokyo Electron Agency Ltd.

Roundtable Opinion Exchange with TEL Representatives
in Charge of Product Environment and Safety
14
Product-related Environmental Initiatives

16

Plant / Office Initiatives for the Environment

20<North America>
Tokyo Electron U.S. Holdings, Inc., Tokyo Electron America, Inc.,Tokyo Electron Massachusetts, LLC.,TEL Technology Center, America, LLC.,
Supercritical Systems, Inc., Timbre Technologies, Inc.
<Europe>Tokyo Electron Europe Ltd., Tokyo Electron Italia S.p.A.,
Tokyo Electron Deutschland GmbH,Tokyo Electron Nederland B.V., Tokyo Electron Ireland Ltd.,Tokyo Electron Israel Ltd., Tokyo Electron France S.A.R.L.

Social Report
Health and Safety

24

EHS Education

26

Communication with Stakeholders

27

Comments from Stakeholders

30

Site Report: Tohoku Plant

31<Asia>
Tokyo Electron Korea Ltd., Tokyo Electron Taiwan Ltd.,Tokyo Electron (Shanghai) Ltd.,Tokyo Electron (Shanghai) Logistic Center Ltd.
(Company names as of August 2004)

Period covered: April 1, 2003 to March 31, 2004 (FY2004)
Areas covered: Components of TEL’s environmental management, as well as the social and economic
aspects of corporate contributions to society
and other activities.
We plan to publish an Environmental Sustainability Report annually.

Environment and Safety Activities Milestones
Aug. 1999 Ozu plant obtain acquired ISO14001 certification
Dec. 1999 “Health, Safety and the Environment” added to the Management Philosophy
Apr. 2000 Environmental accounting introduced
Apr. 2000 Unified safety training system “Safety 2000” implemented
Dec. 2000 First TEL Environmental Report publishedApr. 2001 Product life cycle assessments started
Oct. 2001 Green procurement launched
Oct. 2001 Environmental education introduced in facilities not yet certified under
ISO14001
Apr. 2002 Original “TEL Eco-Activity” (environmental management system basedon ISO14001) begins
Apr. 2003 Lead-free Task Team Activities start

May 1994 Standardized, Environment and Safety Center (Environment, Health &Safety Center) establishedMar. 1996 Product Safety Subcommittee (TEL Product EHS Technical Committee)
launched
Apr. 1996 Environmental Subcommittee (TEL EHS Committee) launched
Dec. 1997 Sagami plant obtain acquired ISO14001 certification
Feb. 1998 Tohoku plant obtain acquired ISO14001 certification
Mar. 1998 Saga plant obtain acquired ISO14001 certification
Mar. 1998 Kumamoto and Koshi plants obtain acquired ISO14001 certification
May 1998 Yamanashi plant obtain acquired ISO14001 certification
Sep. 1998 TEL Group Credo and Principles on Environmental Preservation establishedNov. 1998 TEL Group Credo and Principles on Safety & Health establishedJun. 1999 “Safety First policy” establishedTOKYO ELECTRON

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Environmental Sustainability
Report 2004

Corporate Profile
Company Name:Tokyo Electron Limited (TEL)

Address:

TBS Broadcast Center, 3-6 Akasaka 5-chome, Minato-ku, Tokyo 107-8481
TEL: +81-3-5561-7000

President and CEO: Kiyoshi Sato
Established:

November 11, 1963

Capital:¥54,961,190,000 (As of March 31, 2004)

Main products:

Semiconductor Production equipment and flat panel displays (FPDs)
Production equipment, computer networks and electronic components.

Employees:

945 (As of March 31, 2004)

Tokyo Electron head office(TBS Broadcast Center 15 -18th Floor)

Net Sales (Consolidated)

Ordinary Income (Consolidated)(100 million yen)(100 million yen)
7,238

1,192
5,296

4,407

4,178

4,605

338
211
2002.3002000.3

2001.3

2002.3

Net Sales by Division(Consolidated)2003.3(fiscal year ended) March 2004

(100 million yen)(100 million yen)

TEL Group Employees(persons)
10,236

10,171

10,053

8,946

Computer and Networks: 184

2004.3

194

Net Sale by Region of Semiconductor
Production Equipment Division

Others: 122

2001.3

2004.3(fiscal year ended) March 2004

8,870

Southeast Asia: 199
China:176

Electronic
Components:
842

Japan:
1,419

Taiwan:1,005

Semiconductor and
FPD Production Equipment:
4,257

0
Korea:
614

2000.3

2001.3529

538

2002.3

2003.3

2004.3

North America:
506

Europe: 339

Capital Expenditures(100 million yen)

2000.3

2003.3

R&D Expenses(100 million yen)

494

501
441

371

309

189

0

2000.3

2001.3

2002.3123

1102003.3

2004.3

TOKYO ELECTRON

03

2000.3

Environmental Sustainability
Report 2004

2001.3

2002.3

2003.3

2004.3

President Statement

Toward Promoting Corporate Social Responsibility (CSR)
A corporation is a social entity and therefore it has a responsibility to work for the development of environmentallysound society. I look at it as though from the perspective that TEL has been entrusted into my care by society, and I
am to act by encouraging CSR-oriented management.

The Ethics Committee was launched six years ago at the sametime that our Code of Ethics was set out. The committee aims to
examine the planning and the implementation of business ethics
education and enlightenment activities, as well as the practice of

Kiyoshi Satobusiness based on the Code of Ethics. We are determined to maintain

President & CEOa corporate culture rooted in the high level of ethics suitable for a

Tokyo Electron Limited

global exellent company.
Japanese companies are learning from the Western governancemodel, and setting up committees as outlined above has become anincreasingly popular trend. However, at TEL we have been putting
this into practice for several years now.
At TEL, we have developed our operations globally, but it is no
simple matter to correctly understand and comply with the different
rules in each country and region in which we have operations. However,
we take this matter very seriously and are making efforts to formulatea system that ensures that we are in compliance throughout the world.
With this system, we are maintaining an environment in which all
employees can work while guarding a high level of integrity.

Transparency of Management is Criticalfor Substantial Implementation of CSR
Since the day that TEL was founded, fair and honest manage-

Environment and Safety are Central to CSR for TEL

ment has been at the root of the company. With this in mind, I have

The main business of our company is the manufacturing of semi-

been managing the company since my appointment as the president

conductor production equipment. By providing better products toin June 2003.

semiconductor manufacturers, we contribute to higher performance in

In order to put fair and honest management into practice, it isproduction and better quality semiconductors. The two main

important for corporate executives to have a clear vision of this, but atelements of our company’s CSR policy are to secure absolute safety

the same time, it is also imperative to have a system where a high levelin the user’s operation of our equipment when used by customersof ethical standards are maintained. At TEL, under the corporate govern-

and to minimize the environmental burden in any field in which ourance scheme, which is fundamental to CSR, we have an Ethics Com-

company is involved.

mittee, a Compensation Committee and a Nomination Committee.

Whether we succeed in our environmental and safety efforts

The Nomination Committee is an independent body that fulfills

depends greatly on the ingenuity and the efforts of equipment devel-

the task of nominating the company’s next president, as the position is

opers. Our developers integrate precise performance requirement

not nominated by the current president. In this way, the selection

demands from customers into design on a daily basis. In the compet-

process of the corporate executive is given increased transparency. I

itive world of today, it is not easy to “pack” the environment andmyself was appointed President by this committee. In a nutshell, thesafety into equipment design; however, we are aiming to achieve

most positive effect of this system would seem to be that it does away

both through the investment of human resources and capital.

with any incentive to curry favor with company brass, and allows one

We Demonstrate Leadership in the Semiconductor
Production Equipment Industry

to pursue a career by the virtues of his or her convictions.
The Compensation Committee is an independent body that
decides the compensation of the President & CEO, while also aiming

The semiconductor industry is a younger industry, encumbered

to increase the transparency of management. This system was intro-

by fewer rules and conventions when compared with otherduced five years ago and the compensation for representative directors

industries. For that reason, it is imperative that each company

is disclosed on the invitations to shareholder’s meetings.

actively works in order to solve various problems in the social andTOKYO ELECTRON

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Environmental Sustainability
Report 2004

My Eco-life“I love fishing and go often go to
the Okutama area or Aki River onholidays, and the river pollution
always bothers me. I will do myutmost to keep our rivers cleanand strive to protect the environment so that we can eat the caught
fish safely.”

manufacturers in the world; consequently, we have an obligation to

the environmental sectors.
For example, the semiconductor manufacturing process requires

demonstrate leadership, not only in the industry, but also in society

the use of many chemical products; therefore, every time a new

both in our decisions and in actions. While placing an emphasis on

manufacturing process is invented, new chemical products are used.

the pillars of our CSR policy, the environment and safety, we will

In some of these cases, although not legally banned, some chemical

forge stronger ties with customers, suppliers and all stakeholders in

products are not suitable from the perspective of the environment oran effort to steadily implement solid measures.

safety; this makes for difficult decisions on whether or not to use

In this document, we report on our approach to the environment

them. In these situations, our company holds safety in the highest

and safety and the actual activities at the heart of TEL. Your voices

regard. We think that a substance should not be used until a safe

are extremely important in making managerial decisions and I ask formeans of using it is established.

your frank comments.

TEL is one of the largest semiconductor production equipment

TEL’s Credo on Environmental Preservation

TEL’s Safety and Health Credo< TEL’s Credo on Environmental Preventation >< TEL’s Safety and Health Credo >The Tokyo Electron Group believes that preserving and continuously
improving the global environment is one of the most important objectives
for mankind, as well as our business. Based on this credo, we are determined to expand our business by maintaining harmony with the global
environment, and thus win the trust of our many customers, shareholders,
employees and society in general.

Safety and health training are required for all employees and board members at TEL. Our profit delivery date requirements, and time limitations
must not be met at the sacrifice of human life and the safety of our facilities and equipment.

<<

TEL’s Principles on>
Environmental Preservation include:

TEL’s Principles on>
Safety and Health Preservation include:

1. Continuous Improvement
TEL is conscious that the factors that affect the safety and health ofcustomers and our employees exist at the stage of manufacturing,transportation, installation, use, maintenance and service of our products, and based on this awareness, we shall continually strive to eliminate factors that impede the safety and health of our products.

1. Continuous Improvement
TEL recognizes that the products we manufacture affect the environment, and therefore, we, with our customers and suppliers, shall continually strive to minimize the environmental impact of our processes
and operations.

2. Knowledge
TEL continually strives to enhance our understanding of safety and healthand improve these conditions for all people working in our sites. In addition, TEL aims to gain qualitative and quantitative grasps of safety andhealth factors on TEL Group activities and operations.

2. Knowledge
TEL continually strives to enhance its understanding of the impact that
TEL’s operations have on the environment, and the responsibility that
this entails. In addition, TEL aims to gain a quantitative grasp of environmental factors, and the impacts resulting from our activities andoperations.

3. Performance Criteria
As well as strictly observing mandatory safety and health laws, treaties
and agreements, TEL strives to enhance its own safety and health management system and improve global safety and health programs by the proactive establishment of aggressive safety and health performance criteria.

3. Performance Criteria
As well as strictly observing mandatory environmental laws, treaties
and agreements, TEL strives to enhance its own environmental management system and improve global environmental preservation programs by the proactive establishment of its own aggressive environmental performance criteria.

4. Disclosure
TEL shares information about its safety and health credo, policies andthe progress of our safety and health activities with all board members
and employees, and publish the general public our progress as the needarises.

4. Disclosure
TEL shares information about its environmental concepts and principles, as well as the progress of our ongoing contributions toward environmental protection with employees and the general public.
5. Partnership
TEL actively participates in environmental protection activities practiced by our customers, suppliers and local communities.

5. Partnership
TEL actively participates in safety and health activities practiced byour customers, suppliers and communities.
November 27, 1998

September 25, 1998

TOKYO ELECTRON

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Environmental Sustainability
Report 2004

Highlights

TEL’s Products
We would like to explain the processes of manufacturing semiconductors by TEL’s products.

The process for manufacturing semiconductors isthin film on the surface of the wafer.

By repeating this process,are created on the surface

Silicon wafer

Manufacturing Semiconductors

Other Lines of Business

Semiconductors are manufactured through the process of gen-

Aside from manufacturing semiconductor production equipment,erating fine circuits using gas and chemical solutions on a thin discTEL is also engaged in the development and manufacture of equip-

called a silicon wafer. We form oxide film (Thermal Processing System),ment that produces FPDs (Flat Panel Displays). In addition, electronic

apply photoresist solution (Coater/Developer), perform pattern expo-

components (handled by Tokyo Electron Device Ltd.), such as semi-

sure through photo masks and grind down the oxide film using

conductors and Internet technology products (handled by Computer

plasma (Plasma Etch System). Next, come the steps of ion implanta-

Network Division) are also major pillars of TEL’s business operations.

tion, metal coating, and wafer inspection, completing the manufacturing
process. Next, the wafer is cut into pieces, wired and packaged, andthe semiconductor is complete.

TOKYO ELECTRON

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Environmental Sustainability
Report 2004

a repetition of forming and etching

semiconductor circuitsof the wafer.

A wafer is then cut,
wired and packaged.

With this,the semiconductor is complete.

TEL manufactures
various types ofequipment that formand etch thin filmon the surface
of wafers.
Thermal Processing
SystemCoater/Developer

TOKYO ELECTRON

Plasma Etch System

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Environmental Sustainability
Report 2004

Highlights

TEL’s Business
TEL’s major product is semiconductor production equipment. Each product differs in specifications, as it is based on therequirements of each of our customers. We do our utmost to consider the environment and safety when manufacturing
our products, in order to meet the technical and performance demands expected of us.

Semiconductor Production Equipment
Manufacturing Flow
On these pages, we have provided an example of the stages of ourSpecifications for each unit differ because
each piece of equipment is customdesigned based on the destination country or the layout of the system. During thedesign process, we lavish attention on
environmental and safety concerns inregards to manufacturing, operation andTokyo Electron Kyushu Limited maintenance lifecycles. Lately, shifting
to lead-free designs looms as a big
Design Division
challenge.

operations — including specification meetings, design, manufacturing, shipping, start-up and inspection, as well as semiconductor manufacturing —for TEL’s major product: CLEAN TRACK™ LITHIUS™. We also featurecomments from on-site regarding the environment and safety. We arecommitted to placing a premium on the environment, safety and health inall stages of our work.

2.
Design1.
Specifications
Meetings

Tokyo Electron Limited
Sales DivisionDuring our meetings with customers, we spend agreat deal of time in setting delivery dates, priceand the detailed specifications of products inmeetings with customers. Our sales division
understands that legal systems and regulations,as well as customers differ by region, and is so
we are making ongoing efforts to acquire theappropriate legal and regulatory knowledge inregards to the environment and safety.

Our main task is unit assembly andinspections. In the past, we used atype of alcohol for shipping inspections, but we have switched to purewater, thus conserving resources.

3.
Manufacturing
Tokyo Electron Kyushu Limited
Manufacturing Division

TOKYO ELECTRON

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Environmental Sustainability
Report 2004

Start-up work takes one to twomonths until the final inspection.
This is an on-site operation at ourcustomer’s site. We pay great
attention to organization and takecare to avoid accidents, such as
solution leakage.

The basic concept behind the CLEAN TRACKLITHIUS, which went into mass production in
January 2004, is reducing photoresist consumption and safe operation. Furthermore, thetechnology used in this equipment has madenew levels of microfabrication possible. We
believe that this will contribute to the further
advancement of society.

Hikaru Ito
VP & General Manager
Clean Track BU
Tokyo Electron Limited

Tokyo Electron Kyushu Limited
Engineering Services
Division

5.
Start-up andInspection

6.
Semiconductors
Manufacturing

For maintenance reasons, or in
the event of equipment problems,
we provide customer support by
setting up support stations near
our customers all over the world.
We also recycle parts received
during maintenance work.
Tokyo Electron FE Limited
Field Support Division

4.
Shipping
andDeliveryTOKYO ELECTRONTokyo Electron BP Limited
Logistics Division

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Environmental Sustainability
Report 2004

We use a special packaging in order to maintain a high level of cleanliness. We are considering safety to the utmost degree possible inregard to the increased risks in loading,transportation and installation of our equipment
as they continue to get larger. We are alsoendeavoring to conserve resources and recycle
by avoiding excessive packaging, without
affecting product quality, and taking packaging
materials with us after delivering a product .

Environmental Report

EHS Management
TEL Group has gone global with its EHS activities.

TEL’s EHS

EHS Management System

Based on the recognition that TEL’s business activities affect the

Each of the manufacturing plants have formulated environmental

environment, we have been conducting environmental management

management systems and obtained certification based on ISO14001.

and obtaining the certification based on ISO14001 at each plant

Yokohama office of Tokyo Electron Device Ltd. and Miyagi plant ofsince 1997. We also recognize that the need for every person

Tokyo Electron AT Ltd. are to be awarded certification in 2004. We

involved in our business to continuously lead safe, healthy and satisfying

are also forming a Occupational Safety and Health Management System

lives is as vital as our attention to environmental issues. In order tobased on OHSAS18001 and the guidelines of the Japan Ministry ofclarify our position, we formulated the TEL Credo and Principles on

Health, Labor and Welfare as a part of EHS management.

Environmental Preservation and the TEL Credo and Principles on
Health and Safety in 1998. We have also clearly articulated our
positions on the environment, health and safety in our management

ISO14001-qualified plants andthe plants to be awarded certification

philosophy and promoted implementation of our EHS (Environment,

Company namePlant and
office name

(Scheduled)
Certification dateTokyo Electron AT Ltd.
Tokyo Electron FE Ltd.

Sagami plant

December 10,
1997

1110-1997-AE-KOB-RvA

Tohoku plantFebruary 19,
1998

1118-1998-AE-KOB-RvA

May 15,
19981124-1998-AE-KOB-RvA Rev.1

Health and Safety) system throughout TEL group companies.

EHS Promotion Structure
EHS-related activities are supported by the three pillars of:Tokyo Electron AT Ltd.

“Product EHS,” “Customer-site EHS,” and “Factory and Office EHS.”
TEL’s EHS Promotion System

Product EHS
Executive
Committee

Product EHS
Technical
Committee

Global EHS Committee

Tokyo Electron Kyushu Ltd.

Sales/
Marketing/
Product EHS
Committee

Yamanashi plant(Fujii/Hosaka area)
Miyagi plant

To be awardedin December 2004

Saga plant

March 12,1998

1119-1998-AE-KOB-RvA

Kumamoto/Koshi plant

March 26,
1998

1120-1998-AE-KOB-RvA

Ozu plant

August 27,
1999

1414-1999-AE-KOB-RvA

Product EHS(

EHS activities forequipment used in
production in TEL)Tokyo Electro Device Ltd.

Certification
numberYokohama office

To be awardedin July 2004

EHS Activities Monitoring System
In order to strengthen our EHS Management System, TEL is striving
to raise the monitoring standards. The monitoring of this system and its

Customer-site
EHS Committee

accomplishments are executed in parallel by the plants, within the TEL

Customer-site EHS(

EHS activities
at customers’ locationsgroup companies and by third parties. The most actively promoted of)these at present, is the TEL Internal Assessment, which is an interchange of EHS evaluations conducted by EHS representatives from eachplant. It started in FY 2003. In FY 2004, it was performed at two plants.
In FY 2005, we are bringing the

TEL Safety and
Health Committee

standard higher by adding Environmental Performance and Legal

Factory and Office EHS
TEL EHS
Committee(

EHS activities
in each region

Compliance and product EHS to)the current Occupational Healthand Safety and Work Safety as
new items.

TOKYO ELECTRON

10Environmental Sustainability
Report 2004

On-site inspection

Environmental Report

Environmental Accounting
We are accurately determining the costs and benefits of environmental activities and using this knowledge in management.

Environmental Preservation Costs

Our Approach to Environmental Accounting
Environmental accounting is a tool that helps to determine theEnvironmental preservation costs (investments and expenses) forcosts and benefits of a company’s environmental activities. At TEL,FY 2004 are outlined in the tables and figures below.

we have introduced an environmental accounting system to deter-

The scope of coverage of the data includes TEL plants and officesmine quantitatively the costs of environmental protection activities

in Japan. The investment depreciations in facilities are calculated asamong our corporate activities and to use this information to guide

expenses beginning with the investments made in FY 2000.

corporate activities.
Breakdown of Investments

For FY 2004, which marked the fifth year since the introduction

Resource
circulation
0.4%

of our environmental accounting system, we endeavored to improve
the accuracy of data collection on the amount of the investment inequipment and costs of the environmental activities. We intend to

Management
activity
2.0%

Our environmental accounting complies with the Environmental
Globalenvironmental
13.6%

Accounting Guidelines (2002 edition) and the Environmental Account-

Pollution
prevention
8.2%

Globalenvironmental
protection
2.2%

Social activity
1.7%

Upstream/
downstream
22.8%

make continuity an aspect of environmental protection activities.

Breakdown of Expenses

Pollution
prevention
61.2%

Resource
recycling
12.5%

R&D
60.7%

Management
activity
11.8%

ing Guidebook published by Japan’s Ministry of the Environment.
Upstream/
downstream
3.0%

Environmental Protection Costs in FY 2004
Scope: All TEL facilities in Japan (Sapporo, Tohoku, Miyagi, Akasaka, Fuchu, Yokohama, Sagami, Hosaka, Fujii, Amagasaki, Osaka, Saga, Kumamoto, Koshi, Ozu)
Period covered: April 1, 2003 — March 31, 2004
Scope of main initiatives(facilities, supplies, leases, depreciation, maintenance, etc.)

Investment amount

Preventing air pollution, water pollution, soil pollution, etc.
Global warming prevention, ozone layer protection, etc.
Efficient use of resources, waste reduction, etc.
Green purchasing, green procurement, etc.
Environmental education, monitoring and measuring environmental impacts, etc.
Product R&D, etc.
Planting trees and vegetation, supporting local environmental activities, information disclosure, etc.
Repairing damage to the natural environment, etc.
Other

104,01284,60918,820583
31,575
2,770
0
0
0
0
138,357Classifications of environmental costs
1. Business area costs
Itemization 1.1 Pollution prevention costs
1.2 Global environmental costs
1.3 Resource circulation costs
2. Upstream/Downstream costs
3. Management activity costs
4. Research and development costs
5. Social activity costs
6. Environmental damage costs
7. Other costs
Total(1,000 yen)

Expense amount
683,504
246,11264,945
372,447
88,606350,993
1,812,572
50,440102
02,986,217

Economic Benefits of Environment Protection Activities
The results of calculations for the economic benefits of environ-

The economic benefits of environmental protection activities aremental protection activities are shown in the table below.

the only environmental accounting items covered in this report.

Economic Benefits of Environmental Protection Activities in FY 2004
Scope: TEL facilities in Japan (Sapporo, Tohoku, Miyagi, Akasaka, Fuchu, Yokohama, Sagami, Hosaka, Fujii, Osaka, Amagasaki, Saga, Kumamoto, Koshi, Ozu)
Period covered: April 1, 2003 — March 31, 2004
Classifications of environmental costs

Cost reduction

Profits

Details

Benefits relating to electricity and other energy
Water-related benefits
Paper-related benefits
Resource-related benefits
Other benefits
Waste related benefits
Water and soil effluent benefits
Cost reduction subtotal
Resource-related benefits
Waste-related benefits
Profit subtotal
Grand total

TOKYO ELECTRON

Reduced electricity usage
Reduced water usage
Reduced paper usage
Reduced crude oil usage
Reduced waste volume
Reduced waste volume

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Environmental Sustainability
Report 2004

(1,000 yen)Amount
78,613
7,330
9,095-1,066
10,893
103,494
1,398
209,757
53
3,421
3,474
213,232

Environmental Report

EHS Activity Targets and Results
TEL has set targets based on our Credo and Principles on the Environment, Safety and Health and is acting on them.

TEL laid out our Credo and Principles on Environmental Preserva-

credos and principles, EHS activities are put into practice throughouttion and Credo and Principles on Health and Safety in 1998 in order tothe group. The plans and the achievements for FY 2004 and the plansclarify our view on the environment, health and safety. Based on theseand the objectives for FY 2005 onward are displayed in the table below.

EHS Activity Targets and Achievements in FY 2004
Activity Plan for FY 2004

Eco-products

Eco-factory

Occupational
Health and Safety

EHS
Management System

Results

Evaluation

Plans and Targets for FY 2005 Onward

See

Implementation of LCA (Life Cycle Assessment)

Implementation for newly-developed productsContinue execution

P16

Promote the introduction of lead-free solder in our products

Initiated promotional organization and started
activities

Started the single unit evaluation for lead-free solder
components and the main circuit boards

P18

Promote green procurement

Undertook supplier education

Determine the amount of prohibited chemical substances in TEL products

P19

Promotion of zero-emissions

Accomplished at four Kyushu region plants,
recycling rate for the entire group raised to 93
percent

Achieve zero-emissions by FY 2006 at the remaining
manufacturing plants, and bring the overall recycling
rate above 95 percent by FY 2006

P20

Reduced energy consumption (CO2 emissions by one
percent per unit of sales, based on the Law Concerning
the Rational Use of Energy)

As a result of the energy conservation activities ineach region, we logged a 13 percent reduction
from the previous fiscal year per unit of sales

Further promotion of energy conservation and bring
per unit usage close to FY 1998 levels

P21

Continue efforts to determine the amount of chemicals used that are subject to PRTR reporting

Determined amount of relevant substances
used

Determine sites of emissions, usage reduction

P23

Zero accidents that require employees to take off
moretime off more than four days, and a 30 percent
reduction in accidental injuries year-on-year.

Accidents that required employees to take the time off
for more than four days occurred, and accidental injuries
were reduced by 25 percent from the previous year.

Re-establish FY 2005 targets

P24

Continue execution of environmental activities at
offices facilities

Activities are ongoingObtain ISO14001 certification for Tokyo Electron Device Ltd.

P10Introduce occupational health and safety management systems at production facilities

Promoted risk assessment at plants wherethese have not yet been introduced

Definitive execution and confirmation of risk reduction plans

P10

Establish EHS assessment system

Trained assessors and executed reciprocal
assessments at two plants

Equipment EHS related items assessment, not only for theoccupational safety, but also for environmental performance

P10

Promotion of activities at overseas offices

Determined the activities of each region, andcarried out EHS handbook education for thesales managers in some overseas regions

Review the implementation of environmental education, expand it
to regions not yet carrying it out, and examine how to determine
the status of education implementation, such as using the Internet.

P25

Achieved target

Achieved 80 % of target

Achieved less than 80 % of target

Considering environmental and safety factors from the design stage.
The challenge is to build momentum and nurture this tendency.
TEL has until now clearly distinguished between the role of sales andengineers. However, the views andthe knowledge regarding environmental burden and safety should be sharedacross these sectors so that activities
can be based on the integrated knowledge and collective know-how of bothworking in sales and those
Satoshi Nakashima thoseworking at the factory.
Manufacturing Division
From the perspective of reducing
VP & General Manager
theenvironmental
burden of the equipTokyo Electron Limited
ment TEL produces, it is important tolook deeply into this issue. It is obvious that the abilities of the development
engineers are one of the determining factors of the environmental and safety
performance of equipment. We will pour our energy into human resources
development to create employees who can select materials and design
products while being conscious of the environment and safety measures.

TOKYO ELECTRON

Designing the products while keeping in mind waste disposal andrecycling has been a practice at consumer electronics makers for a longtime. There is no question that we need to firmly embrace this mindset at
TEL. It is fair to say that creating this kind of momentum is a key challenge
for the Environment, Health and Safety Center.
Our future tasks include taking steps toward lead-free production
processes and for employees to take it upon themselves to inspect and confirm the safety of equipment within factories once again with their own eyes.

My Eco-life“I come from a family of farmers
and enjoy agricultural work on
my days off.”

12

Environmental Sustainability
Report 2004

Environmental Report

Environmental Activities of TEL Companies
We would like to introduce you to the environmental and safety approaches, activities and policies of two of our companies.

Tokyo Electron Kyushu Limited

Tokyo Electron AT Limited

Haruo Iwatsu

Hiroki Takebuchi

President andRepresentative Director

President andRepresentative Director

Reducing the Loss and Environmental Burden by
Improving Performance

We Promote EHS Activities
Under Our “Quality-ism” Ideology.

The main business of Tokyo Electron Kyushu Ltd. is research anddevelopment, design, manufacturing, and start-up of semiconductor/FPD
production equipment based out of Kumamoto. The biggest environmental challenge that we are facing right now is the prevention ofwaste production. We are reducing the number of defective units byimproving quality and reducing the amount of energy used at thefactory by improving the efficiency. If we can improve yields byenhancing the performance of our product, the environmental andcost benefits will be immense. It is our belief that we should, ofcourse, make efforts to conserve energy, but at the same time, weshould do our best to boost performance throughout manufacturing
activities.
In order to realize heightened performance for our customers, wehave been evaluating our semiconductor production equipment at fivesites. In the future, we plan to review this situation, integrate all the
manufacturers’ evaluations of products at five sites, and reduce the useof electricity and chemical solutions from an aggregate point of view.
We would also like to review the relationship between the cleanlinessof the clean room and equipment performance from a technical pointof view, and attempt to reduce the environmental burden as much as
possible while maintaining product performance.

Tokyo Electron AT Ltd. made its start in April 2004 by integrating
functions that were separated between the Yamanashi and Tohoku
areas with the dual aims of boosting morale and efficiency. At thesame time, we are also participating in a company-wide campaignthat is promoting the theme of “Quality-ism.”
The word “quality” carries with it a strong connotation of “safety.”
Based on the belief that no company can exist in society without establishingsecurity or safety, we are running safety-oriented corporate activities by allocating human resources to evaluating safety from the development phase.
We also focusing on paring the amount of exhaust gas and electricity used from the design phase and make efforts to reduce thefactory’s amount of final waste, starting from the procurement phase.
In recent years, semiconductor production manufacturers havecome to require semiconductor equipment makers, like TEL and othercompanies, to perform thorough tests before shipping products sothat they can save time by avoiding their own test-runs themselves
and jump immediately into mass-producing products. As a result, theenvironmental burden of activities at our company is increasing, andit has to be said that it is more difficult for us to trim energy consumption.
On the other hand, conversely, this is reducing waste and energy
consumption for our customers.
Today energy conservation has become a major mission for homeelectronics makers. We continue to take great pride in the fact thatthe devices made from the semiconductors manufactured with ourequipment will be used to produce environmentally-friendly products.

My Eco-life

My Eco-life“Kumamoto has delicious waterand air. My house is surroundedby trees in the middle of nature
where we grow chemical-freevegetables and tea.”“On my days off, I like to take walks
in the nature and practice Qigong
exercise breathing techniques formy health.”

TOKYO ELECTRON

13

Environmental Sustainability
Report 2004

Special Feature

Roundtable Opinion Exchange with TEL Representatives
Considering safety and environmental issues at the product development and design stages is key to the TEL’s environment and safety activities.
For this special feature, we had those employees in charge of product safety and environment issues gather and discuss the current state of affairs and future challenges. We hope to parlay this discussion into an opportunity to continue with these cross-cutting discussions that transcend the boundaries of business units.

Satoru Inoue
CT Quality Assurance Dept. Tokyo Electron Kyushu Limited

Yukitsugu Kazuno
Environmental Occupational Health & Safety CenterTokyo Electron AT Limited

Toshihiro Kobayashi
ESD Quality Assurance Dept. Tokyo Electron AT Limited

Yuji Maeda
FPD Quality Assurance Dept. Tokyo Electron AT Limited

Kenji Soejima
CS Administration Dept. Tokyo Electron Kyushu Limited

Seikou Ueno
TPS Engineering Control Dept. Tokyo Electron AT Limited(From left to right)

equipment, unlike those we have for safety, that it is difficult

Safety has reached a fairly high level. We havetaken our first step in assuring environmental quality,and now it’s time to mounta full-scale effort to tackle this issue.

to create a big increased in awareness or the view of it assomething essential. I think the determining factor is thedemands placed by the customers.

Kobayashis Our development engineers have always put thehighest priority on the safety of our equipment when used by

Soejimas We are getting an increasing number of requests forcustomers. At this point in time, I think we’ve achieved quite

our equipment’s environmental burden data as well as inqui-a high level. I believe this holds true for all equipment. In theries related to the environment. We are really seeing a swellcase of the environment, we have also made certain gains inin the interest of customers in TEL equipment’s environmen-

areas where customers clearly voice demands, such as intal considerations.

the realm of energy conservation, as well as in areas where
there are clear-cut regulations, such as the lead-free

Maedas What we spend the most time on in terms of safety for

movement, which makes it easy to set targets.

FPD production equipment is occupational safety. After all, we
are dealing with production equipment that weighs 60 tons, so

Uenos There needs to be a process where we can set andwe pay a lot of attention to where we work. Compared to semi-

achieve qualitative targets for those things pertaining to the

conductor production equipment, there seem to be fewer

environment that have no concrete standard. We need torequests from FPD production equipment customers regarding

further promote product EHS road map* for the goal.

the environment, but we believe these will grow in the future.

*Product EHS road map: A product EHS target. It includes thefollowing items: input and output required for or generated by
the product during use, LCA, green procurement, lead-free,recycling, etc.

Our Environmental Approach
Taking the Lead in the Environment
Inoues In making the shift to lead-free production equipment, weKazunos Not only the safety of customers, but occupational

followed instructions from the top of our company and estab-safety within TEL is also an important issue. A work environ-lished a company-wide team to review the strategy and allo-

ment where people can work comfortably raises productivity

cated a budget. With all of the company working toward one

and improves quality. On the other hand, it’s probably

theme, it makes me think that the TEL has taken anotherbecause of a lack of clear environmental standards forstep forward in environmental initiatives. As a company thatTOKYO ELECTRON

14

Environmental Sustainability
Report 2004

in Charge of Product Environment and Safety

Product EHS Road Map Reduction Targets for Inputs and Outputs During the use of Semiconductor Production Equipment
FY 1998 Standards*1

FY 2000 Standards*2

FY 2006 Targets

FY2008 Targets

200 mm equipment

300 mm equipment

200 mm equipment

300 mm equipment

300 mm equipment

Energy consumption

1*1

1*2

0.8

0.5

0.4

Water consumption(coolant water, etc.)

1*1

1*2

0.8

0.4

0.4

Water consumption(ultra-pure water)

1*1

1*2

0.65

0.7

0.6

3 emissions

1*1

1*2

0.35

0.4

0.35

VOCs*4 emissions

1*1

1*2

0.35

0.4

0.35

HAPs*

*1 FY 1998 is the standard for consumption and emissions per unit area for 200mm equipment and equal to a value of one*2 FY 2000 is the standard for consumption and emissions per unit area for 200mm equipment and equal to a value of one*3 HAPs (Hazardous Air Pollutants)*4 VOCs (Volatile Organic Compounds)

produces industrial equipment, I think our company is at thetechnology or you can’t do anything. I believe that it is impor-forefront of the lead-free movement.

tant for employees in charge of environmental management tocollaborate with development engineers in accruing elemental

Soejimas The difficult aspect in the case of the environment istechnology and providing that as feedback to design engineers.

that the type of the environmental burden varies with eachpiece of equipment. Lead was easy to gain consensus on as

Inoues For example, what do we address in terms of harmful

it’s common in all equipment, but I think it would be difficult

substances after we have tackled lead? I suppose that it isto establish company-wide targets for other items.

probably most realistic to narrow down the substances to betargeted in phases. I would like to see us advance our envi-

Inoues I think it is important to set environmental targets for eachronmental approach one step at a time.

piece of equipment and create an atmosphere throughout thecompany where each member of TEL is aware of this and has

Summary

the attitude “I’m taking efforts to protect the environment” sothat development engineers will be able to allot a maximum of

Below is the summary of the discussion conducted. At
TEL, we will continue concrete discussions on how we
can resolve these issues.

energy to devising environmentally-conscious designs.
Furthermore, there is the message from our President
calling on us to “Show leadership when it comes to the envi-

q Environmental considerations in making equip-

ronment.” I think it is important to spread this thinking

ment are of central concern for TEL in its
approach to the environment and safety.

throughout TEL.

w It is necessary to spread awareness among eachUenos In order to take leadership in terms of the environment, notand every employee that this is an important topic.

just development engineers need to pay attention to theenvironment when it comes to equipment performance.

e We will continue to hold discussions on the mer-

Another idea is to create a specialized department for envi-

its and need to create a specialized department
to deal with environmental technology.

ronmental technology, which would collaborate with devel-r We will continue to hold discussions on theme

opment engineers to develop equipment.

common in TEL companies, as with the movement to go lead-free.

Kobayashis Unlike equipment safety technology, with environmental technology you have to be familiar with elemental

TOKYO ELECTRON

15

Environmental Sustainability
Report 2004

Environmental Report

Product-related Environmental Initiatives
TEL is eagerly executing Life Cycle Assessments (LCA) on an ongoing basis.

Design Working Group (WG) under the Product EHS Technical Committee

Reducing the Environmental Burden of Products
TEL has strived to incorporate suggestions from customers into its(see page 10), which is focusing on energy and resource conservation.

products and promoted the reduction of environmental burdens during

In terms of LCA, currently in each Business Unit (BU) and Division,

semiconductor production, as well as eliminated harmful substances

we are compiling data on the environmental burden of newly-developed

from materials used to make equipment. We respect and have placed

equipment and using findings to improve equipment or next-generation

great importance on the need for customers to know about the environ-machines. In addition, we have also established a Lead-Free Task Teammental burden of products throughout their life cycles. As a result, wewith the aim of implementing a lead-free policy from production in 2006.

work as quickly as possible to collect and compile data relating to

In addition to internal activities, we have also established a Greenthese impacts during each stage of a product’s lifecycle, manufac-

Procurement WG, which has clarified TEL procurement standards —ture, use and disposal. Currently, by effectively applying the LCA data

based on the need to consider the environmental burden in purchas-and the product design data that we have accumulated, we haveing materials for equipment production — and conveyed these toreached the top position in our industry. Furthermore, we are constantly

suppliers.

striving to incorporate environmental considerations into our businessWe investigate the environmental approaches of our suppliers,

from all and any angles possible, such as our initiative to conserve

and, when necessary, provide them with environmental education toenergy by reducing heat released to the clean room.

support their environmental activities.
In TEL equipment, EHS related items have become required by customers, and it is an important task to integrate the EHS concept from theOrganization for Lowering Environmental Burden
TEL has clarified items that can be uniformly addressed as well as

development and design phase of the products at an early stage. Further-

listed priority items for the entire group in relation to reducing environmental

more, as the globalization of our company advances, adapting to local

burden in equipment, while at the same time striving to enhance perform-

legal systems in various countries is increasingly necessary. To respondance from an environmental perspective. We have also created an Eco

to these demands we are actively pushing ahead with Design For EHS.

TOPICS
Implementing LCA for Newly-Developed Equipment
We are carrying out LCA as a means of objectively evaluating the environmental burden of our products via the TEL.
The equipment that we are showing you here is the Trias™ SPA.
This is a wafer nitridation and oxidization film deposition systemthat was jointly developed with the support of Japan’s Ministry of
Economy, Trade and Industry and Tohoku University. As the miniaturization of semiconductor processing advances, the damage
caused by conventional plasma processing can no longer beignored. Trias SPA employs SPA (Slot Plane Antenna) to perform
plasma processing without damaging the wafer while satisfying
the demands of producing high-density plasmas at low electron
temperatures. TEL performs LCA for equipment that uses newtechnology, such as this, and determines the environmental load

per life cycle. By feeding back these evaluation results into new, nextgeneration equipment development, we are striving to reduce the environmental burden. TEL was also awarded the Prime Minister’s Awardfor the Trias SPA at the second conference on promoting of IndustryAcademia-Government Collaboration held in Kyoto in June 2003.

Lifecycle CO2 Emission Rate(%)

CO2 emission rate

2.6%
0Material
manufacture

1.0%
Assembly

96.2%

0.1%
Equipment
transport

Equipment
operation

0.1%
Disposal

CO2 Emission Rate During Operation(%)

CO2 Emission Rate
59.5%
32.9%

Trias SPA

0

Prime Minister’s Award certificate and plaqueTOKYO ELECTRON

16Electricity

Environmental Sustainability
Report 2004

Coolant water

3.9%

3.7%

ExaustN2 gasConserving Energy in Clean Rooms•A Shift in Heat Sources and Cooling Methods•Shifting to More Efficient Method of Heat Exchange

One of TEL’s main products, the Thermal Processing System, conducts

To realize better heat absorption efficiency than available via conven-film deposition on wafers during the manufacturing of semiconductors at

tional heat exchangers, we have adopted a plate-style device that is morevery high temperatures. In the clean rooms, where this process takes place,compact. As a result, the burden placed on the clean room by the heat

the amount of particles (microscopic dust, etc.), the temperature and thereleased from the heat exhaust pipes has been reduced.

humidity are controlled with a special air conditioner. The high temperatureprocessing in the clean room makes these air conditioners work extremely

Heat Exchanger Change

hard and consequently increases the consumption of the energy. In order toConventional
methodreduce energy consumption, TEL’s new product TELFORMULA™ uses aNewmethodAir innew method.

Air inIn conventional systems, the heat generated inside the equipment
while processing a wafer is released to the outside via coolant water runCoolant
water outning through pipes located on the outer rim of the heat generating area,

Coolant
water out

and thus heat is directly released
from the surface of the equipment

Coolant
water inCoolant
water into the clean room and controlled.
Air out

TELFORMULA is structured so that

Shifted to the plate style,which is more compact
with higher heatexchange efficiency.

Air out

the coolant water runs in layers

Heat Release Rate and Processing
Temperature vs. Electricity Consumption

and inside the top panel, improving
the heat absorption rate. With theConventional model(%)

New model

Heat release rateby electricity consumption

realization of this new method has
arisen the possibility that we cangreatly cut electricity consumption
in clean rooms.
TELFORMULA

12
8
4
0

Change in Heat Source Cooling Method
Conventional
method

16

300

400

New
methodCoolant water in

Cooling of
the top panel

Coolant water out

9001000 (ºC)•Coming Initiatives

Coolant water inInsulationmaterial

500
600
700
800
Processing temperature

Based on these new methods and system developments, we are con-sidering a closed system employing a quick cooling system as a means ofCooling ofside area

countering heat release for the next generation.

Coolant water out

Creating a Closed System with the Quick Cooling System
Present
Open system

Coolant pipe

HeatsourceCoolant waterruns in layers

FutureClosed system

Heat releaseHeatsourceHeat
exchanger

Heat
exchanger

BlowerBlowerTOKYO ELECTRON

17

Environmental Sustainability
Report 2004

Environmental Report

Product-related Environmental Initiatives

Lead-free Initiative
The use of harmful materials such as lead, mercury and cad-

solder. Specifically, in FY 2004 they investigated the current situation

mium in consumer electronic products will be banned come Junewith our suppliers. In FY 2005, we intend to clarify the major issues

2006 in the European Union (EU) under WEEE*1 and RoHS*2.

and tasks with suppliers, formulate technical standards, review intro-

Although semiconductor production equipment does not fall under

ducing this methodology into the manufacturing processes, decide thethe scope of these directives, TEL endeavors to take preventive

items for the unit evaluation and execution, and to decide the assembly

measures against pollution and is forging ahead with efforts to realize

evaluation items and the unit, while responding as an organization.

lead-free processes.

*1 WEEE: Waste Electrical and Electronic Equipment*2 RoHS: Restriction of the use of certain Hazardous Substances in electrical and electronic equipment

TEL has established a Lead-free Task Team composed of representatives from each company, BU and Division to implement lead-free
Lead-free Implementation PlanFY 2004

Targets
Apr.

July

Oct.

FY 2005
Jan.

Apr.

July

Oct.

FY 2006
Jan.

Apr.

July

Oct.

FY 2007
Jan.

Apr.

July

Formation and launch of Lead-free Task Teamand its activities
Policy announcements (to suppliers)
Consideration of technology and materials to be adopted
Supplier survey, cooperation and action plan
Cooperation on countermeasures with OEM makers
Evaluations of module units, boards
Evaluation embedding modules, boards
Production preparation
Production

To be
Toimplemented
be executed after 2006

TOPICS
Large Reduction in Developing Solution Consumption
TEL focuses on reducing environmental burden as well as costs,
and we are making efforts to reduce the consumption of chemicalsolution used when operating equipment.
During the lithography process, a pattern is transfered onto the wafer
surface by applying an organic photosensitive chemical, known as photoresist; then, the developing process is performed. The most common
developing process uses TMAH (tetramethylammonium hydroxide) water
solution. Miniaturization of semiconductor technology tends to make thesurface of the photoresist more prone to shed water. The conventional
paddle developing method uses a larger amount of the developing solution due to the increased water-resistance of the photoresist surface.
TEL has invented a new nozzle
and a developing method that reduces
the developing solution consumption
to one-fifth of the conventional method,
regardless of the photoresist surface
water-resistance. We are currently
pushing ahead with plans to adapt
CLEAN TRACK LITHIUS

TOKYO ELECTRON

this method to our coater/developer technology for our main product line,
the CLEAN TRACK LITHIUS and CLEAN TRACK ACT™ series.

Developing Solution Consumption
The graph indicates the developing solution consumption needed for one
wafer (one developing). Currently, the most advanced process uses ArF photolithography and more developing solution is consumed than with the conventional KrF method. This tendency is expected to continue to the F2-laser
photolithography, which is being considered for the next generation.
Developing solution consumption
Photoresist surface contact degree(degree)018

Photoresist surface
contact degree

Developing solution
consumption

(ml)

KrF
ArF
F2
Conventional method

Environmental Sustainability
Report 2004

KrF
ArF
F2
New method0Our Stance on Green Procurement
suppliers that meet certain environmental

We procure raw materials and parts from outside TEL to be usedin our main products — semiconductor and FPD production

standards.

equipment. In order to reduce the environmental burden of TEL’s* Green Procurement Guideline: Standards
and targets for chemicals and energy conservation, packaging, resource conservation, recycling, and information disclosure.

business activities, the procured parts and the raw materials need to
be produced with the environment in mind. For that reason, TEL procures materials from suppliers that are actively engaged in activities
to reduce the environmental burden based on the green procurement
guideline*. In the future, we plan to limit our procurement only to theGreen Procurement Guideline

Green Procurement Action Plan
Theme

FY 2004

FY 2005

FY 2006

FY 2007

FY 2008

Green procurement for equipment and parts
Supplier surveys and instruction in improving
environmental management

Survey/Improvement guidance

Reviewing supplier relationships
Compose lists of materials prohibited from use in products

Survey/Improvement guidance

Survey/Improvement guidance

Survey/Improvement guidance

Survey/Improvement guidance

Reviewing supplier relationships
List composition

Collect data and request cooperation on materials
prohibited from use in products

Data collection/Establish master parts registration

Replace parts containing prohibited materials

Promote designs that do not use materials prohibited from use in products

Clarifying Materials Prohibited or to be Reduced in
Products

Results of FY 2004
We evaluated our suppliers on a four-tiered scale of environ-

TEL has formulated a list of materials contained in product parts

mental consciousness in FY 2004 and worked with the suppliers thatand materials beyond those chemicals regulated by law, while clari-needed to make improvements. As a result, the number of D rank

fying which substances are being used and promoting the reduction

suppliers (those that need to be more environmentally considerate)or substitution of chemicals with our Guidelines for Chemicals Ban-has decreased. We will continue to work with our suppliers andned from Use in Products or to be Reduced. We have begun survey-

reduce the environmental burden by integrating the green procure-ing our suppliers to determine whether they are using any of thesement evaluation results into the supplier quality evaluation.

substances. We also plan to build a system where all chemical sub-Suppliers’ Environmental Activities Survey Results

stances contained in parts and materials are registered in an integra-(%)

end of FY 2004

FY 2002

ted database so that a search of the product or check at the time of93%

ordering will yield all necessary information.
68%

List of Materials Prohibited from Use in Products
Material groups
Asbestos

Hydrogen fluoride and its water-soluble salt

Cadmium and its compounds

Beryllium and its compounds

Hexavalent Chromium compounds

PCB’s (polychlorinated biphenyls)

CyanidesOzone depleting substances

Mercury and its compounds

Halogen fire retardants

Organotin compounds

Specific bromine fire retardants (PBB, PBDE, etc.)

Selenium and its compounds

Polychlorinated naphthalenes (more than three chlorines)

Dioxins

Organic chlorine-based substances

Arsenic and its compounds

PFOS* and its homologs

32%

7%
0

A-C rank* PFOS: Perfluorooctane sulfonate
PFOS is an intermediate used to create the final compounds

TOKYO ELECTRON

19

Environmental Sustainability
Report 2004

D rankEnvironmental Report

Plant / Office Initiatives for the Environment
TEL is making efforts to reduce the environmental burden at all production plants and offices based on the EHS management structure.

Our Stance on Waste Reduction and Recycling

Zero-Emission“Produce no waste. Recycle any waste that is produced. Properly

At TEL, we have been promoting waste reduction and recycling

dispose of any waste that cannot be recycled.” Based on these princi-

and we call those plants that achieve their target “zero-emission

ples, TEL is working to minimize the waste generated by our business.

plants.” Specifically, zero emission plants are those that incinerate orWith a shortage of waste disposal sites in Japan and landfill costs on

send less than two percent of total waste to landfills. As a result, thethe rise, efforts to reduce waste not only help to minimize environ-four plants of Tokyo Electron Kyushu Ltd. (Saga, Kumamoto, Koshi,mental burden, but also lead to lower production costs. Namely, we

and Ozu) reached the status of zero-emissions in FY 2004.
TEL aims to achieve zero-emissions at all manufacturing plants

are sorting waste for collection, finding new recycling services, man-in Japan by FY 2006.

aging the certification of the waste processing service contractors,
periodically checking final disposal conditions, and shifting to processes that do not generate waste. We are also displaying information
on how to sort waste near waste and recycling receptacles in four languages for our foreign visitersand employees, so that they cansort the waste easily. We are

TOPICS

minimizing our environmental

Introduction of Waste Processing Facilities at
Yamanashi Plant Hosaka Areaburden through these activities.

Highly concentrated hydrofluoric acid waste solutions resulting
from wafer and quartz cleansing at Hosaka area cannot be processed by existing facilities. Conventionally, they have been stored inwaste solution tanks on site, which were then transported by contractors and the disposal commissioned. However, in June 2003 we
introduced a hydrofluoric acid treatment system that can processthese waste solutions. As a result, approximately 300 tons permonth of the waste solution produced at the Hosaka area can now
be processed in-house, which resulted in a system that allows us toslash the amount of waste solution produced as waste. Moreover,while we have greatly reduced the environmental burden of ourplant activities, we havealso saved the money usedon waste transport andfees paid for outsourcing
the waste processing.

Waste sorting chart displayedin four languages

Total Waste and Recycling Ratio
The amount of TEL waste that reached landfills and our recycling rate are summarized in the graph below. As a result of ourefforts to use resources efficiently, the recycling rate has been risingyear after year.
Our initial plan was to achieve a 90 percent overall recycling rate
by FY 2006, but we reached 93 percent in FY 2004, ahead of schedule.
We subsequently established a new target and are now aiming for arecycling rate of 95 percent or higher by FY2006.
Recycling Rate and Waste Volume(t)

Waste volume (incineration and landfill)(%)

Recycling rate

Waste solution processing facility
93.1%

Hosaka Area Waste by Quarter

Recycling rate 95 percent (FY 2006 target)
(t)

77.4%
69.7%

Liquid waste

Other wastes

93

59.9%
40.9%

55.2%
49.7%

15.3%

700
114

0

4,238

4,772

3,189

3,179

3,657

3,938

3,268

847

97

98

99

00

01

02

03

04

0
0

1st quarter(Apr. to Jun.)78
2nd quarter(Jul. to Sep.)

127
104
3rd quarter(Oct. to Dec.)

12573
4th quarter(Jan. to Mar.)FY 2004

TOKYO ELECTRON

20

Environmental Sustainability
Report 2004

Our Stance on Preventing Global Warming

Electrical Consumption
Japan(100,000 kWh)TEL is making efforts to prevent global warming by reducing

148

energy consumption.

Heavy Fuel Oil Consumption

Overseas
160

(kl)

150
2,430

101

Most manufacturing plants are classified as Type 1 Designated

1,916

2,181

1,881

1,652

2,191

Energy Management Factories under Japan’s Law Concerning the

1,828
1,631

2,151
1,858

Rational Use of Energy. As the law dictates, these factories have

958

1,501
1,212

established and observed control standards based on certain criteria,

1,206

appointed an energy manager, and set up institutional controls on
0energy consumption. Each of our plants is implementing energy conservation activities, having set energy-saving targets for lighting and

98

99

00

01

02

03

04

0

Kerosene Consumption

99

00

01

02

03

LPG

City gas
716

1,062

temperatures. In addition, facilities that are involved in product man-

996

990

04

Natural Gas Consumption(1,000 m3)(kl)

office equipment as well as controlling the setting of air conditioning

98

990
608

908

ufacturing and development conduct systematic shutdowns duringextended holidays and work to increase the efficiency of each type of132

work procedure and reduce energy consumption.

403

389

Energy Consumption
0

In FY 2004, with the rise in the utilization rate at the manufacturing

98

99

00

01

02

03

04

0

120

129

115

124

60

65

70

49

58

545

658

72

55

59

66

66

63

58

98

99

00

01

02

03

04

(Plants and offices in Japan and overseas)

plants in the second half of the year, both manufacturing and sales
increased from FY 2003. At the same time, the energy consumption in

TOPICS

terms of CO2 equivalent stayed roughly the same, resulting in emissions per sale unit that were 87 percent of FY 2003 levels. This was a

Clean Room Energy Conservation

major improvement and we exceeded our target of a one percent cut.

In clean rooms where semiconductor and FPD production equipment assembly take place, air purifier systems that remove even the tiniest particles of dust from the air are operating continuously. There isdata that indicates that the amount of electricity used for this accounts
for more than half of the electricity consumed at a plant. At TEL’s Koshi
plant, energy conservation is realized through meticulous energy management, such as revising and alternating the frequency of ventilation
outside of operation hours, as well as intermittent operation of ventilationand circulation fans to the extent that it does not affect the cleanliness of
the room. Moreover, electricity consumption was reduced by 2.4 million
kWh (approximately 15 million yen) by cutting unnecessary plant powerusage and switching off lights when people are not present.

However, unfortunately, this emissions per unit of sales figure, whencompared against FY 1998 as the base year is in fact a 168 percent
increase. We will continue our energy conservation activities and try to
prevent global warming through reducing energy consumption.
Total energy use (CO2 equivalent*1)(t-CO2)(%)

CO2 emissions
Per unit of sales*2
Year-on-year*3

208.0%
193.1%
168.2%

Clean Room Energy Conservation

150.9%
134.7%
104.4%
95.8%

0105.6%

150.8%

100.0%
89.4%

Ventilation fan

197.0%

92.8%
78.4%

HEPA filter

87.1%

45,92250,48852,45665,81784,761

94,00995,486

95,487

97

98

99

00

01

02

03

04

Reviewing the ventilation amount
Reducing ventilation fan operation

Clean room0

*1 For CO2 equivalent, see the Ministry of theEnvironment’s “Environmental Activity Evaluation Program.”*2 Unit of sales = energy consumption/sales (FY 1998 = 100 percent)*3 Year-on-year ratio = current year unit of sales/previous year unit of sales(Plants in Japan and overseas)

TOKYO ELECTRON

Circulation fan

Reducing the operation of the ventilation fan by half during
the night and holidays

21

Environmental Sustainability
Report 2004

Environmental Report

Plant / Office Initiatives for the Environment

Our Stance on Resource Conservation

Efforts to Reduce Water Usage

To continue our efforts in reducing the amount of resources we

Our manufacturing plants are undertaking various activities touse, we are also conducting green purchasing. To promote resource

reduce water consumption. With the help of special circulation equip-

conservation, we work to reduce the amount of water, copy paperment, we are reducing water usage by recycling industrial water usedand stationery that we use or purchase, are proactive in our purchas-in all stages of operations, such as coolant water used for manufacturing,ing of green products, and work with office suppliers to have themdevelopment, testing, shipping, inspection, etc. Furthermore, wecollect the items we no longer need.

have installed automatic flushing toilets at each plant to prevent
needless consumption as well as prevent people from neglecting toturn off the water or other needless use of water.

Efforts to Reduce Paper Usage
All companies in TEL are working to reduce paper consumption. For

Water consumption

example, employees are encouraged to use both sides of paper and to(1,000 m3 )Overseas use

Industrial

Tap water

reduce the size of copies. In addition, we are making efforts to share972

information without using paper, such as by using electronic means tocirculate documents and notices. As a result, we reduced the amount of

817

770

388

we try to use recycled paper, and will continue to reduce paper con-

486

527

445

391

290

325

332

390

98

99

00

01

521

sumption by revising our operations and keep the use of paper to the
for

474

1,014
64

436

million fewer sheets of paper in FY 2004. Except for in particular cases,

minimum

119

89

693

copy paper consumed from FY 2003 by nine percent and used about 8

146

812

1,004

Groundwater
1,039
62

necessary172

records and forms. We are097

also contributing to the con-

430

415

357

67
02

88
03

107
04

(Plants and offices in Japan and overseas)

servation of forest resources
by substituting non-wood
resource paper cups made of
kenaf.

Promotional poster calling for reduced
use of copy paper

TOPICS
Efforts at Office Facilities

Copy Paper Consumption(1,000 sheets)

Manufacturing plants

At the Sapporo office of Tokyo Electron Software Technologies,
we have stopped using disposable plastic cups as a part of ourresource conservation activities, and employees now bring theirown cups. We are also encouraging employees to use both sidesof the paper to reduce the consumption of copy paper.
In order to further our resource conservation activities, weare awarding employees and groups that make outstanding
efforts in their activities. In FY 2004, we awarded two individuals,
one group and one floor for their efforts.

Office facilities

131,500
19,350107,367
18,30095,785
18,617

87,63418,184112,150
89,0670

01

02

77,16803

69,45004(Plants in Japan)

Award certificate
Encouraging employees to use
their own cups

TOKYO ELECTRON

22

Environmental Sustainability
Report 2004

Our Stance on Environmental Risk Management

Controlling Chemical Substances

When we introduce a new gas or chemical solution at the time

TEL is strictly controlling and continuously keeping tabs onof a product evaluation, we perform a risk assessment prior to usingchemical substances as set out by the law. Moreover, in the way ofit and take measures when necessary.

PCBs, we have two transformers and four capacitors and have them

We have learned from accidents that have befallen other compa-

securely stored them away.

nies, and in FY 2004, we performed a survey of our disaster prevention system, checking the disaster prevention organization, facilities

PRTR* Law Class 1 Designated Chemical Substances
Consumption(Units: kg)

and equipment, emergency contact network, and management struc-

Legally assigned
numberName of Class 1 Chemical Substances

ture among contractors in each manufacturing plant. All shortcomings

43

Ethylene glycol

were budgeted for and rectified as necessary.

172

N,N-dimethylformamide

283

Hydrogen fluoride and its water-soluble salts

311

Manganese and its compounds

Abiding by the Law

9,144
309
4,558
450

Total

We are working to comply with environmental legal, emission stand-

Total

14,461*PRTR (Pollutant Release and Transfer Register): A framework for controllingchemical substances that may be hazardous to ecosystems and human health.
It involves determining, compiling and reporting on the amounts of chemicals
used, released into the environment and contained in waste transferred off-site.

ard. However, on December 2, 2003, an on-site inspection (water quality
analysis) at our Miyagi Plant resulted in an advisory notice calling for us to
improvement the BOD figures for our wastewater, as they exceeded acceptable levels. We suspect the cause to be poor functioning of microbes used to

Use of Global Warming Substances

treat water brought on by an increase in employees working during the week-

TEL releases CO2 through the use of energy and PFC groupends. We have switched the operation of the aeration blower to match suita-

chemicals and SF6, types of greenhouse gases, during processes,

ble work conditions and filed a report announcing improvement in the situa-

such as dry etching or cleansing. The total consumption and emission

tion on January 6, 2004. We also received complaints about abnormal odorsof these substances was equal to 10,000 tons CO2 equivalent. We

coming from localized organic solvent emissions and the various emission

will continue to make efforts to manage and reduce the consumption

tanks coming from the cafeteria as a result of repair work in the Yamanashiof these substances.

plant. We have taken countermeasures and corrected the situation. Apart

Greenhouse Gas Consumption

from these cases, we have had no environment-related accidents, violations, fines, complaints, or related lawsuits, ground pollution, economic(Units: t-CO2)

HFCs

PFCs

SF6

Others

Total

1,140

1,284

6,682

56

9,162

sanctions or advisory notices from the government.

•TEL Inputs and Outputs
The material flow of TEL is summarized in thechart on the right. Each number is the combined total
for manufacturing plants and office facilities. The
distinguishing characteristic of TEL is the large environmental burden at the time of equipment evaluation. This is because we are evaluating the equipment using the same processes as employed during
semiconductor production, using electricity, various
gases and solutions.

TEL’s Substance Flow

Input
233,100 MWh• Electricity
715km
• Gas
2,890kl• Fuel
1,014km• Water
14.5t• Chemical substances

2

TEL

3

• Paper (copy paper)

TOKYO ELECTRON

23

1,004km3

TEL

3(PRTR Law Class 1 Designated Substances)

Output98,896t
• CO
NOx
11.1t
•
Wastewater• (rivers and sewage)(

Plants and offices inJapan and overseas

351t

Environmental Sustainability
Report 2004)

• Total waste
recycled• Totalresources
amount incinerated• Totaland sent to landfills

12,210t
11,363t
847t

Social Report

Health and Safety
Health and safety are corporate social responsibilities and the basis for a comfortable work environment.
We are supporting Health and Safety in every aspect of our corporate activities by giving high priority to the health of
our employees and customers, and ensuring the safety of our equipment.

For the Safety of Everyone

Handling of Accident Reports

Based on our view of the importance of Health and Safety, we

Any accident involving TEL employees is reported to our head-

have integrated these ideals into our management philosophy. TEL

quarters. When the accident report is received, the seriousness of

thinks that the good health and safety of our employees, customers

the incident is judged based on a set of criteria (human injury,

and all the people involved in our corporate activities are one of ourfire/explosion, gas/chemical leak, degree of damage to the customer,social responsibilities as a company and a policy that translates intoetc.) Accidents with a strong element of urgency are reported to top

good business. In other words, the safety of people, equipment andmanagement and TEL companies immediately.

facilities must never be compromised by profits, delivery date dead-The following graph indicates the frequency rate of accidents, notlines or time limitations.

including first aid case accidents. It reveals a lower figure for the entire
TEL than electric machinery manufacturing industry average in Japan.

In addition, in order to convey our view on this topic to customers
and a wide range of other stakeholders, we have printed a brochure,

Number of Accident and Frequency Rate

“Introducing Safety First Culture(Number of accidents)

Awareness.”

Manufacturing industry average in Japan
Electric machinery manufacturingindustry average in Japan
TEL

100

1.02

0.97

0.98

0.98

48
41
0.38

0.34

0.36

0.18

0.15
03

37
0.35

0.38
0

“Safety First” poster

01

02

0.24
04

* Frequency rate: Number of occupational accidents per one million labor hours
Number of accidents that required the employee to miss work
for more than 4 days/total labor hours x 1,000,000* Number of accident injuries in FY 2001 is considered to be 100

The “Introducing Safety First
Culture Awareness”

TOPICS
Requiring personal protective equipment (helmet and inner helmet, safety glasses and safety shoes)
In order to prevent accident injuries, it is important to formulate
danger reduction strategies ahead of time through safe design ofequipment and improved work procedures based on risk assessments.
However, there are some cases where employees are exposed to
unexpected dangers; namely those encountered by producing andinstalling large-sized new equipment in special areas such as clean
rooms. In order to prevent accidents and minimize damage, TEL
encourages wearing protection gear while working at TEL’s manufacturing

plants as well as customer sites. Apart from the conventional helmet
used for the head, an inner helmet is worn inside clean suits. We
actively encourage safety/protection glasses be worn to protect theeyes and safety shoes for the clean room be worn to protecting thetoes. As a result, the number of incidents of injury resulting in cuts tothe head, or damage to the eyes or toes is decreasing.

Incidents of Head Injury over the Past Four Years* FY 2001 is set to be 100
100
100
80

90
80

60

70 percent
reduction

40
20

30
Safety glasses

0
01

02

03

04

TOKYO ELECTRON

24

Environmental Sustainability
Report 2004

Safety shoes forclean rooms

Inner helmet

Product Safety
1) Risk assessment2) Compliance (SEMI S2 & CE Marking)All of our products are tested prior to shipment using our own

In order to secure the safety of the equipment we sell, TEL has

risk assessment criteria based on SEMI standards. At the time of the

adopted the SEMI S2 standard, a semiconductor industry safety stan-completion of the product, people including designers, equipment

dard, for producing our equipment. Furthermore, to demonstrate ourmaintenance service specialists and others gather to identify thelevel of safety, TEL has third parties perform inspections and cer-

dangerous areas of and evaluate the risk of the product. There aretifications for SEMI S2 standards. For exports to European regions,many risk assessment methods, such as SEMI S10, EN-1050 and

we declare that we are in compliance with the CE Marking European

LACS, and we keep taking countermeasures and evaluating thesafety standards outlined in EU directives and apply a CE Mark on ourequipment until it is deemed safe. We have recently started perform-

products prior to shipping. This compliance declaration can only be

ing risk assessments at the design and development phase with theexecuted when it is reviewed and approved by the CE Marking review

aim of building safe equipment.

team, our in-house auditing body.

SEMI S-10 Risk Ranking Matrix
LikelyRisk Ranking
MatrixFrequent
A

LikelyB

PossibleC

Rare
D

UnlikelyE
Equipment CE Mark seal

Severity

Catastrophic 1
Severe2Moderate

3

Minor

4

Risk Assessment Categories (RAC)
5

Very High

4

High

3

Medium2

Low

1

Very Low

CE Mark approved equipment

TOPICS
Product EHS Training for Sales Representatives
TEL has distributed and publishes the “Product EHS Handbook
for Sales People,” which summarizes product EHS knowledge relevant to equipment for sales representatives. Basic knowledge about EHS
for existing equipment is essential forsales representatives to be able todiscuss EHS specification needs withplants in order for new equipment tobe developed. We have also executedtraining for all sales representatives
so that they can effectively use thishandbook. The actual contents of the
training book includes complianceand industry required items, explanaCover page of Producttions for product EHS requested by
EHS Handbook

TOKYO ELECTRON

customers, RFQ (Request for Quotation) handling, understanding ofproduct EHS for sales representatives and providing feedback on
product EHS design.

Sales representative training

25

Environmental Sustainability
Report 2004

Social Report

EHS Education
It is TEL’s duty to work for the protection of the environment, health and safety.
We implement a variety of educational and awareness-raising programs on the principle of providing the necessary
education to the people who need it.

Our Stance on EHS Education

Implementing Environmental Education

TEL has a policy of providing the necessary education to all the

At TEL’s office facilities of TEL, we provide standard environ-appropriate personnel regarding the environment, health and safety.

mental education to all employees, including sales and administrative

We conduct the necessary education and training at different

staff, field engineers, and part-time and temporary employees.

personnel levels — for our own employees and employees fromAt production plants, as a part of training education based on

partner companies who work in-house at TEL companies. When new

ISO14001, we provide all employees education with central emphasis

employees join TEL, the environment, health and safety are amongon the objectives of each plant.

the required topics of their training.

We are also providing special
training to those employees

EHS Education

involved with important environ-• Expert training (Special training for internal environmental
auditing and for importantenvironmental aspects)• Equipment-specific training• Environmental training based• Safety training for employees

on ISO14001 (for manufacturing plants)• Environmental education for TEL
Eco-Activity (office facilities)

Environment

mental burden of plants.

• Training for employees who
go to customer sites

Environmental education
for new employees

on overseas business trips• Advanced safety training(see Topics)• Basic safety training
Health and Safety

Other education and training: emergency lifesaving classes (CPR, first aid skills),
legal education (supervisor training, special operations, etc.).

TOPICS
Hands-on LOTO Training with the Actual Kit

Implementing Safety Education

The risk of handling electricity or moving machinery, suchas the drives of robots in semiconductor and FPD production
equipment, is increasing as the sizes of the wafers and glass substrate are becoming larger. To protect ourselves from this risk, TEL
has adopted and provided training in the Lockout*1-tagout*2 (LOTO)
method which is common in the US.
We are providing hands-on training, such as on locking andtagging circuit breakers, to workers in charge of each operation
using custom-made actual
equipment so that they
can familiarize themselveswith LOTO procedures. We
also introduce a few true
examples of events todemonstrate the importance of executing LOTO.

In order to promote “safety first” at TEL, we are conducting safety
education specific to the nature of jobs, for personnel who work in
the office, in clean rooms and at customer sites. The validity of thissafety training is given an expiration date and the personnel are
required to take a renewal course within a certain time period. The
renewal of the basic safety training and the advanced safety training areconducted through the online
learning on our intranet and canbe done at any time. The curriculum is unified throughout TEL
and is being implemented overseas as well, particularly being
extended in Asia.

Online safety training

Custom-made training kit

In addition, we hold emer-*1 Lockout: The following of a set procedure to shut down theflow of energy to equipment using a lockout device (such asa key). Until the lockout device is removed the energy flow is
stopped and the equipment cannot operate.

gency lifesaving lessons (CPR,
first aid methods) so that employees can acquire the skills neces-*2 Tagout: To place a warning tag (label) on shutdown switches
or energy shutdown or restraining devices, to ensure thatenergy flow to the equipment is not restored.

sary in the event of a disaster oran emergency.
Emergency lifesaving classTOKYO ELECTRON

26

Environmental Sustainability
Report 2004

Social Report

Communication with Stakeholders
At TEL, we believe that promoting communication with all of our various stakeholders will lead to the growth of TEL.

Our Stance on Communication

EHS Promotion Activities in the Semiconductor
Production Equipment Industry

We actively encourage communication with all stakeholders. We
think that it is essential to have interaction with all of the people

TEL is actively pushing many EHS promotional activities in the semi-

involved in our business activities by sharing as much information as

conductor production equipment industry. In FY 2004, we participated inpossible and gaining feedback in order to advance our efforts on thethe EECA (The European Electronic Component Manufacturers Associa-

environment, health and safety.

tion) sponsored ISESH (International Semiconductor Environment, Safety

TEL has been publishing an envi-and Health) Conference (June 29, 2003 to July 3 in Noordwijk, Holland)ronmental report since 2000. We are

hosted by ESIA (European Semiconductor Industry Association) and pre-also making efforts to disclose informa-sented our efforts on considering the environment in making our products.

tion through our website related not only

We explained in detail our efforts through the “development of ourto the environment, but also on healthgas supply/emission system” by way of an analogy describing the gas

and safety. We will continue to proac-

supply of our Thermal Processing

tively disclose environment, health and

System TELFORMULA as thesafety related information in order to

upstream of a river and the emis-

facilitate two-way communication withsions system as being the down-

stakeholders.

stream of the river.
The Environmental Sustainability
Report 2003

URL

Presentation at ISESH

http://www.tel.com/eng/about/ehs/ehs.htm

TOPICS

Publication the EHS Times and Using our Intranet
TEL publishes a bimonthly in-house magazine, the “EHS Times,”

Establishing a Liaison Conference forCompanies Collaborating on EHS

focused on EHS and introducing in easy to understand terms a variety
of information, such as the deliberations of each committee as well as

We have created a “Liaison Conference for Companies Collaborating on EHS” as a forum for communication for supporting
companies among TEL’s manufacturing plants.
The purpose of this conference is to deepen communication
with supporting companies to counteract the growing number ofpeople working within TEL plants, increasing diversity and complexity of the operations involved and outsourcing of operations.
TEL employees have always been made aware of the rules
and relevant matters to be transmitted at our company throughin-house training. However, the establishment of this conference
has strengthened the regular exchange of information andencouraged an active exchange of opinions.

initiatives in each company and region. Such EHS-related newsletters
are also being made by each company and in each region and play
an important role in heightening awareness among the employees.
Also each company and region is actively using our intranet to postand exchange information.

Our intranet

EHS Times

EHS Liaison ConferenceTOKYO ELECTRON

27

Environmental Sustainability
Report 2004

Social Report

Communication with Stakeholders

EHS Seminar in Taiwan

TOPICSAs in the past year, TEL held a “TEL EHS Seminar” in Hsin-chu
with our Taiwanese customers.

SEMI Akira Inoue EHS Award in 2003

The main themes we dealt with this time were overarching EHS

The Akira Inoue EHS Award is administered by SEMI, aninternational industrial association for semiconductor materialmakers and the semiconductor and FPD production equipment
manufacturers in the world. This award was established in commemoration of the former president of TEL, the late Akira Inoue,
who was also a former board member of SEMI, and a great advocate of the environment and safety with major achievements in
EHS activities. The selection process is conducted by SEMI’s
subcommittee and the award is given to groups or individuals
that make great contributions to EHS development in thesemiconductor industry or in society.
This award was created in 2000, and in 2003, the award’s
fourth year, it was awarded to the President & CEO of Seiko
Epson Corporation, Mr. Saburo Kusama. The award was given to
Mr. Kusama in recognition of his achievements in the advancement of EHS activities, including energy conservation as well as
the reduction of waste and greenhouse gas emissions. Under the
direction of Mr. Kusama, Epson has pursued the “Co-Existence”
concept in all of its business operations and products.
The inaugural award in 2000 went to the CEO of ST Micro
Electronics, Mr. Pasquale Pistorio, the second award went to the
CEO of Intel Corporation, Mr. Craig Barrett, and the third award
went to Dr. Farhang Shadman of the University of Arizona.

issues and product EHS topics presented by representatives fromeach BU and Division.
General topics covered included TEL’s stance on the environment,
health and safety, and analysis of various accidents. We also had a
special guest speaker from the Japan Institute of Human Factors who
used case studies of accidents to explain the mechanism that causes
accidents and the relationship with human factors.
Under the topic of product EHS,
representatives from each BU and Division introduced lead-free solder related
policies, LOTO energy management
methods, and the SEMI S10 matrix risk
assessment method, which is a standard
method used in the semiconductor production equipment industry. In conclusion, the EHS concept as applied to the
TEL EHS Seminar Pamphlet

latest thermal processing system

TELFORMULA was explained and compared with the conventional

First award (2000)

system.

Mr. Pasquale Pistorio
ST Micro Electronics CEO

Our customers gained a heightened understanding of TEL’s EHS
activities at the seminar and evaluated the event highly, giving us
positive feedback and leaving us with comments like: “I really understood TEL’s attitude toward EHS” and “This provided me with a lots of
new ideas and inspirations.”

Second award (2001)

Mr. Craig Barrett
Intel Corporation CEO

Third award (2002)

Dr. Farhang Shadman
University of Arizona

EHS seminar

EHS staff of Tokyo Electron Taiwan

Fourth award (2003)

Mr. Saburo Kusama
Seiko Epson Corporation President & CEO

TOKYO ELECTRON

28

Environmental Sustainability
Report 2004

Our Stance on Social Contributions

Social Contributions Outside JapanTEL is actively making social contributions in other countries as

Our management philosophy states that “we always want towell, especially in the United States.

abide by the law and have a cooperative attitude toward society” andthat “it is our duty to cooperate for the healthy development of the•Award-winning Environmental Campaign

society.”
Under this philosophy, all TEL companies are building trustfulTokyo Electron America (Head Office in Austin, Texas) was awarded therelationships with the government and local society, while undertak-

National Citation of Merit in the Keep Texas Beautiful environmental contest
in 2003. We have been actively providing many kinds of assistance, suching various activities to preserve the environment and contribute toas educational assistance, particularly in science and mathematics, healthsociety. Recognizing above as an important mission and element ofassistance for needy local residents, and improvements to make the com-being a corporation, we would like to advance with our customers

munity easier to live in, as well as landscaping and beautification activities.

and society while further enhancing these activities.

This award was based upon recognition of our assistance in programs in
Austin, such as recycling activities at

Our Social Contributions in Japan

local schools, nature•

education programs

Local clean-up

for local residents,

TEL companies in each region help keep local neighborhoods clean asroad administration

well as trim greenery as a part of local clean-up activities.
In Ozu town in Kumamoto Prefecture, “Ozu environment beautification cam-by our employees

paign day” has been set for two days each year. On these days, beautification andand waste manage-

landscaping activities are performed. Our Ozu plant has participated in this event

ment programs.

Environmental
Campaign Award

since the plant was opened andcleaned places like the Kumamoto
Central Industry District. A total of 49
employees from our companies andour suppliers participated in theactivities during the first half of 2004.
Environmental clean-up activities

TOPICS•Eco-drive

A Message from Barry Rapozo,
Chairman of Tokyo Electron America, Inc.

Based on a keen awareness of the need to prevent global warming,

we are implementing campaigns to stop the idling of vehicles at each ofWhat we aim to do is not only
to run our business smoothly, butalso to serve the welfare of local
people. Toward that end, we aremaking contributions to the local
community through various volunteer activities and providing financial support to the extent that it ispossible. By expanding what has
been done inside the company toBarry Rapozo
the local community, and by workTokyo Electron America, Inc.
ing with the community residents,
Chairman & CEO
the level of activities is sure to risesteadily. These activities also boost our employee satisfactionlevels and translate into higher productivity. We hope to continue
with a variety of activities while improving the living standard of
the community as a whole.

our plants.
At our Tohoku plant, in order to educate our employees about the needto stop vehicles from idling when driving at work and the value in commuting
to work, we have displayed Iwate Prefecture
Eco-drive Advisory posters and distributed
booklets to each department.
At our Yamanashi plant, stopping vehicles from idling is company policy. For
example, all the cars entering and exiting theplant are encouraged at entrance the security station not to leave their vehicles idling inorder to reduce CO2 emissions and raiseawareness about not leaving vehicles idling.

Iwate Prefecture’s“Eco-drive Advisory” poster

TOKYO ELECTRON

29

Environmental Sustainability
Report 2004

Comments from Stakeholders
We have received many comments on our environmental reports and business activities. Mr. Ito is a customer using
our products. Mr. Saito is the head of Esashi city’s office in charge of industrial development and he has been
involved with our Tohoku plant. We hope to incorporate these opinions into our activities in the future.

NEC Electronics Corporation

Esashi-city, Iwate Prefecture

Naoya Itoh

Ryuji Saito

Manager, Eco Products
Environmental Management Division

General Manager,
Industrial Development Department(1) Thoughts on TEL’s Environmental Sustainability Report(1) Thoughts on TEL’s Environmental Sustainability Report

I read TEL’s Environmental Sustainability Report and was impressedwith how rich it was in content. The inclusion of safety, health and social
activities made it especially clear that it was composed with a CSR reportin mind.
However, to further improve the report I would appreciate it if the following points were taken into account.
1. I hope that TEL can add pages clarifying its priorities for reducing
environmental burden. I think a chart outlining priority issues andTEL’s position in relation to overall environmental burden is needed.
2. It seems that TEL is putting emphasis on reducing the environmental
burden of products, but by adding an explanation clarifying why theenvironmental burden of products and why LCA is being pursued, I
think the overall direction of activities as a whole will be made clear.

I have read your 2003 Environmental Sustainability Report and would
like to offer a few thoughts from the perspective of municipal government.
First, I am strongly impressed by your faithful observance of guidelines in your efforts. If I were to make three requests, they would be thefollowing.
The first point is in regard to your FY 2003 plans and results. For
example, I think that by including a specific figure in the plan, such ascommitting to green procurement above a set percentage, you enhanceaccountability and the ability to review your pledges.
The second point has to do with your waste reduction and recycling
activities outlined under your Topics article. Here it indicates that yourTohoku plant has made great strides in the waste and recycling area. I
expect that if you published an environmental report for the site that it
would have a significant educational effect.
The third point has to do with CSR (Corporate Social Responsibility). In
local areas, interest is rising, especially in regard to the status of compliance among corporations. I would like to have you introduce more concretely what regulations are to be complied with, and in what manner foreach plant.

(2) Comments on TEL’s EHS Activities
It seems that EHS activities are being pursued on a broad scale, both
domestically and abroad, as might be expected of a global business of
TEL’s stature, and I respect that. I personally have worked in a semiconductor plant overseas and have been on the receiving end of TEL’s support. Reading about the environmental considerations and actions in yourreport reminds of the high level of awareness of environmental activities
you have as a company.

(2) Impressions of TEL’s EHS Activities
I appreciate your leadership in activities such as Industrial Campus
Clean Campaign as a core firm of Esashi’s Industrial Area Conference.

(3) Impressions of TEL from NEC Electronics(3) Impressions of TEL from Esashi-city

As a timely development of cutting-edge technology, you are an irreplaceable business partner for us and I want to maintain and build upon
our friendly ties in future.
Your company’s aggressive efforts to minimize the environmental burden of your products translates into a lessened environmental burden forour company during production and in my mind, this makes you a very
reliable partner.

We are very grateful for your presence and activities due to the local
employment and economic activities they engender.

(4) Hopes and Expectations for TEL
TEL’s Tohoku plant chairs Esashi’s local industrial district associationand conducts visits between plants as well as seminars about environment
issues. As Esashi-city will do all it can to cooperate with TEL in the hopethat TEL will continue to be a front-running corporation in the region andcontinue to demonstrate leadership.

(4) Hopes and Expectations for TEL
I hope that TEL continues to encourage product design based upon
LCA and continues to show results in developing products that conserve
energy.
I also hope that TEL can find a way to apply results in newly designed
products to older products. I would like to see you keep announcing positive results to users of your products, such as ourselves. While it isn’t a
topic that has received much attention, I get the sense that the parts usedin semiconductor production equipment have a large environmental burden
at the time of disposal. I would like to anticipate that you will turn yourattention to and take action on this topic.

TOKYO ELECTRON

30

Environmental Sustainability
Report 2004

Site Report: Tohoku Plant
The location of TEL’s Tohoku plant, Esashi-city located in central southern Iwate
Prefecture, is a lush area blessed with an abundance of nature, known for producing rice and apples and has even been used as the location of an historical television series filmed by NHK. This plant was established in 1985 and its major product, Thermal Processing Systems, boasts the largest share of the global market.

Material Flow for the Tohoku Plant in FY 2004
In this Site Report, we will outline the environmental burden
during the lifecycle of Thermal Processing Systems made at the
Tohoku plant using a variety of data. In FY 2004, the percentageof equipment made for 300 mm wafers compared to 200 mm
wafers rose as did the total number of products shipped. However, the amount of energy used and wasted created during plant
operation either decreased or was on par with the year before.
␣-303iTELFORMULA

␣-8SE

Thermal Processing Systems being produced at the Tohoku Plant
FY 2004 Total product shipment volume 2,134 t (+43.6% year-on-year)

Input• Material input• Electricity• Gas• Fuel• Water• Chemicals

OutputFY 2004

Year-on-year

2,134 t8,640 MWh9.80 km3
968 kl52.6 km3
0.276 t+43.6%
+0.7%
-1.2%
-2.9%
-16.6%-28.7%(PRTR Law Class I Designated Chemical Substances )• Paper (copy paper)

32.4 t-31.3%FY 2004

Year-on-year

5,996 t+0.1%

1.43 t-3.4%

3-16.6%

BOD

0.44 t+25.7%• Waste

537 t

+0.2%

16 t
521 t

-15.8%
+0.7%

• CO
• NOx
• Wastewater
2

Tokyo Electron AT Ltd.
Tohoku plant

Incineration / Landfill
Recycled materials

52.6 km

Lifecycle (CO2 equivalent, FY 2004)

Procurement
14,505 t-CO2

Manufacturing and Assembly
5,996 t-CO2

Delivery
736 t-CO2

Use
832,873 t-CO2

Cooperating with Locals

Future Policy

An executive of our plant is the chairman of Esashi’s local industrial
distinct association conference. In February 2004, we held a lecture on
the topics of corporate responsibility in regard to environmental initiatives
and what is necessary for the disposal of industrial waste. A large number of local businesspeople, administrative officials, NPO members andothers turned out to consider principles in undertaking environmental
activities and how industrial waste
disposal should be carried out
and principles in undertaking
Lectureenvironmental activities.

We are actively promoting environmental activities based on
ISO14001 and safety and health through our Health and Safety
Committee. We are scheduled to achieve zero-emissions in FY
2005. While earning the cooperation of local businesses, we will
introduce examples of progress we have made while aspiring tobecome a corporation in which local companies, citizens and our
employees can place their trust.

TOKYO ELECTRON

31

Environmental Sustainability
Report 2004

Environment, Health & Safety Center
2-30-7 Sumiyoshi-cho, Fuchu City, Tokyo,183-8705, Japan
TEL: +81-42-333-8052
FAX: +81-42-333-8477
http: www.tel.com
Published: October 200430%

At least 30% of the fibre used in the manufacturing
process of this product comes from well-managed
forest independently certified according to therules of the Forest Stewardship Council.

SA-coc-1210
FSC TRADEMARK© 1996 Forest Stewardship Council A.C.

To facilitate recycling, this report was printed using
biodegradable soy ink, which can easily be de-inked.
Design and production: Cre-en

42AT-006