TOKYO ELECTRONSUSTAINABILITYREPORT 2017

Editorial policy
The purpose of this report is to communicate the roles and responsibilities of Tokyo Electron Limited (TEL) in
promoting a sustainable society and specific activities toward achieving this goal.
In this year’s report, we have made some improvements to the substance and structure of the content.
Stakeholders can now get a better and broader understanding of our commitment to solve social issues throughbusiness operations as well as our efforts to enhance our medium- to long-term corporate value. In addition,
we clearly explain the issues that are material for us and their connection with social issues, our businessenvironment, our medium-term management plan, and risks and opportunities. We have also established annual
goals to serve as indicators to evaluate our progress toward the medium-term goals of each material issue. To
ﬁnd out more, please visit our website.
URL

www.tel.com/environment/index.htm

We remain committed to disclosing information in a timely and transparent manner. Your candid feedback on
this report is highly appreciated.

Update frequency

Scope of disclosure

Website:www.tel.com/environment/index.htm

Sustainability
ReportAmount of information

Organizations covered

This report covers the entire TEL Group (36 consolidated companies), with some exceptions (indicated in thecontent). In April 2014, the status of Tokyo Electron Device Limited changed from being a consolidated subsidiary toan equity-method affiliate.
Period covered

This report principally covers fiscal 2017 (April 1, 2016 to March 31, 2017), although some content covers fiscal 2018.
Publication dateThis report: June 2017 (Next report: scheduled for June 2018; previous report: July 2016)
Reference guidelines

G4 Sustainability Reporting Guidelines, GRI (Global Reporting Initiative)
Environmental Reporting Guidelines 2012, Ministry of the Environment, Government of Japan
Contact

CSR Promotion Department, Tokyo Electron Limited
Akasaka Biz Tower, 3-1 Akasaka 5-chome, Minato-ku, Tokyo 107-6325, Japan
Tel: +81-3-5561-7402

URL1

www.tel.com/contactus/index.htm

TOKYO ELECTRON SUSTAINABILITY REPORT 2017

Contents
Editorial policy
Contents

1
2

Corporate profile
CEO’s message

3
5

CSR-oriented operations

7

Material issues

Process for identifying material issues/Social environment
Stakeholder engagement
Business environment/Medium-term management plan
Risks and opportunities
Identifying material issues/Material issues and CSR goals

9
10
11
12
13

Enhancing productcompetitivenessMedium-term goal/Priority themes/Relevant SDGs
TEL’s research and development
Technology innovation aimed at creating value
Environmental contribution of products

15
16
17
20

Reinforcing responsivenessto customers

Medium-term goal/Priority themes/Relevant SDGs
Systems for grasping customer needs
Solutions that create value for customers

21
22
23

Strengthening earnings
power

Medium-term goal/Priority themes/Relevant SDGs
High quality products
Increase added value of processes

27
28
32

Invigorating people andMedium-term goal/Priority themes/Relevant SDGs
Human rights and diversity
Work-life balance
Human resource development
HealthTEL’s social contribution activities

33
34
35
36
37
38

Medium-term goal/Priority themes/Relevant SDGs
Corporate governanceBusiness ethics and complianceInternal control system and risk management
Safety management
Environmental management
Supply chain management

39
40
41
42
44
45
47

workplaces

Establishing a sustainable
management foundation

Data
Performance summary (Social)
Performance summary (Environment)

49
52

TOKYO ELECTRON SUSTAINABILITY REPORT 20172

Business activities on the global

Corporate
profileAsia

537.0 billion yen
1,850

Europe59.9 billion yen
448

Net sales by region (consolidated)
Other
42.9 billion yen (5.4%)

Europe59.9 billion yen (7.5%)
Japan
101.1 billion yen (12.6%)

Taiwan233.7 billion yen (29.2%)

799.7 billion yen(Fiscal 2017)

U.S.
101.5 billion yen (12.7%)

Korea
145.2 billion yen (18.2%)

China
115.1 billion yen (14.4%)

Company name: Tokyo Electron Limited
Address:

Established:

Akasaka Biz Tower
3-1 Akasaka 5-chome, Minato-ku
Tokyo 107-6325, Japan
November 11, 1963

Representative: Toshiki Kawai
Representative Director,
President & CEO

Main business:

Semiconductor production equipment business,flat panel display (FPD) production equipment
business

Capital:54,961 million yen

Number of employees: 11,241 (consolidated)
1,531 (non-consolidated)
Number of locations:Japan: 8 companies at 29 locations
Outside Japan: 28 companies at 46 locationsin 15 countries and regions
Worldwide total: 36 companies at 75 locationsin 16 countries and regions

3

TOKYO ELECTRON SUSTAINABILITY REPORT 2017(as of March 31, 2017)

stageU.S.

101.5 billion yen
1,655

Number of employees by region (consolidated)Japan

101.1 billion yen
7,288

Asia
1,850 (16.5%)

Europe448 (4.0%)

Sales by region

11,241

Number of employees
by region
Head office

U.S.
1,655 (14.7%)

Regional office,branch office,field service,
sales siteJapan
7,288 (64.8%)

Main products
Semiconductor production equipment

Coater/developer
CLEAN TRACKTM
LITHIUS Pro TM Z

Single Wafer Cleaning System
CELLESTATM -i

Plasma Etch System
TactrasTM VigusTM

Wafer Prober
Precio TM XLFPD production equipment

Atomic Layer
Deposition System
NT333TM

Thermal Processing
SystemTELINDY PLUSTM

Gas Chemical Etch System
Certas LEAGATM

Electrochemical
Deposition System
StratusTM

Single Wafer Deposition
SystemTrias e+TM

FPD Etch/Ash System
Impressio TM

Inkjet Printing System for
manufacturing OLED panels
EliusTMNet sales by division (consolidated)

94.0%
Semiconductor production equipment

6.0%
FPD production equipment

TOKYO ELECTRON SUSTAINABILITY REPORT 20174

CEO’smessage

5

TOKYO ELECTRON SUSTAINABILITY REPORT 2017On behalf of Tokyo Electron, I would first like to express my sincere gratitude to all stakeholders for theircontinued support and patronage.
There are currently a variety of global issues that are becoming increasingly urgent, including climatechange, the depletion of energy and resources, poverty and famine, human rights and labor, andeducation and health. In 2015, the United Nations (UN) adopted the Sustainable Development Goals(SDGs) as common global goals for maintaining and developing society for 2030. In November 2016, theParis Agreement came into force as an international framework for dealing with global warming. The
government and the private sector in both developed and developing countries are being called on tocooperate at a global level and contribute to resolving these issues.
On the social front, as we enter the age of the IoT (Internet of Things), with almost everything insociety connected to networks, the volume of information being handled is becoming larger and larger.
In addition, the use of semiconductors is becoming more and more widespread with applications
that require high degrees of speed and reliability, such as automated driving, remote healthcare,
DNA analysis in the medical and biotechnology fields, and applications based on artificial intelligenceand other new technologies such as augmented reality (AR) and virtual reality (VR). Finally, with anincreasing demand for higher resolution and lower power consumption in flat panel displays (FPD).
Organic electroluminescent displays* have been gaining attention to increase screen size and processing
flexibility. Because of all this, semiconductors and FPDs are in a new growth phase, playing a key role inour social infrastructure, and fulfilling ever-increasing expectations for technological innovation.
Our Corporate Philosophy urges us to “contribute to the development of a dream-inspiring society
through our leading-edge technologies and reliable service and support.” As a leading manufacturerof semiconductor and FPD production equipment, I believe our role is to improve our corporate value
in the medium to long term by contributing to the resolution of social issues. To achieve this, we willfurther enhance product competitiveness, reinforce responsiveness to customers, and strengthen
our earnings power through streamlined operations. In addition, we will build a solid management
platform that supports further growth, focused on developing an open, honest, and invigorating work
environment. These activities have been identified as material issues, and we are taking action toachieve related goals company-wide. Moreover, we became a signatory to the UN Global Compact in2013 and began initiatives for SDGs in 2016, helping to bring our CSR operations in line with internationalframeworks.
Your continued support and encouragement is very much appreciated by all of us at Tokyo Electron.

Toshiki Kawai
Representative Director, President & CEOTokyo Electron Limited* Organic electroluminescent display: The phenomenon of light being emitted from specific organic compounds when voltage is applied.

TOKYO ELECTRON SUSTAINABILITY REPORT 2017

6

CSR-oriented
operations

CSR policy
TEL considers CSR to be the embodiment of its Corporate Philosophy, which has been firmly upheld since its founding. We
pursue sustainable operations from the viewpoints of corporate governance, legal and regulatory compliance and businessethics while creating new value through our products and services. Based on these efforts, we implement CSR activities to help
address social issues. We will continue to pursue CSR activities to build stakeholder trust, improve corporate value and,by doing so, promote the growth of a sustainable and dream-inspiring society.

Corporate Philosophy

We strive to contribute to the development of a dream-inspiring society
through our leading-edge technologies and reliable service and support.

Sustainable operations
Material
issuesThrough business activities
Creation of new value

Reinvest

Advancement ofdream-inspiring
society

Contribution
to the solutionof socialproblems

Distribute to shareholders
and employees

Improvement ofcorporate value
Pay taxes

Distribution of profit

CSR-oriented operations

CSR promotion framework
TEL implements CSR activities on a global basis, including domestic and overseas affiliates, from a medium- to long-term
perspective. To back up these CSR activities, we have established the following three bodies composed of members fromtop management to department representatives. The CSR Management Council is convened twice annually and functions
as the Group’s highest decision-making body for CSRMeeting
related issues. The council approves Group-wide policy
Body
Participants
Functionfrequency
and considers the most important CSR matters. Also
Approve Group-wide CSR
Chairman of the Board
assembling twice a year, the CSR Global Promotion
CSR Management
policyTwice
President and CEO
Directors and generalannually
Council
Discuss important CSR
Committee sets CSR targets and implements global
managers
matters
projects. Furthermore, at the CSR Monthly Meeting,
Chief CSR Promotion
Director
CSR Global
representatives from each division share information
Set CSR targets
Twice
Heads of related
Promotion
departments
annually
Implement global projects
related to CSR activities as part of a responsive framework
Committee
CSR officers of affiliates andoverseas companies
for promoting CSR initiatives across divisions.




















CSR Monthly
Meeting

7

TOKYO ELECTRON SUSTAINABILITY REPORT 2017Person in charge of CSR ateach division

Share information on CSR
activities
Discuss cross-division CSR
initiatives

Monthly

Participation in international CSR initiatives
TEL is a member of the UN Global Compact, a global CSR initiative, and the EICC®,1 an electronic industry CSR alliance.
We comply with these initiatives’ codes of conduct and principles in areas regarding such issues as human rights, labor,
environment, safety and health, ethics and corruption prevention. By doing so, we strive to maintain a sustainable
management platform.
UN Global Compact

EICC

An international initiative for sound globalization andsustainable societies
TEL signed in 2013

A code of conduct for electronics supply chains
TEL joined in 2015

The Ten Principles of the UN Global Compact
Principle 1
Human
RightsPrinciple 2
Principle 3

Labor

Principle 4
Principle 5
Principle 6
Principle 7

Environment

Principle 8
Principle 9

Anticorruption

Principle 10

Businesses should support and respect
the protection of internationally proclaimed
human rights; andmake sure that they are not complicit
in human rights abuses.
Businesses should uphold the freedom of
association and the effective recognition of
the right to collective bargaining;
the elimination of all forms of forced andcompulsory labor;
the effective abolition of child labor; andthe elimination of discrimination in respectof employment and occupation.
Businesses should support a precautionary
approach to environmental challenges;
undertake initiatives to promote greater
environmental responsibility; andencourage the development and diffusionof environmentally friendly technologies.

Businesses should work against corruption
in all its forms, including extortion and bribery.

EICC Framework (Five sections)

Labor

Environment

Treat workers with
dignity and respect

Environmental
conservation

Management
systemHealth & Safety
Assessment andmanagement ofrisks

Ethics
Maintain the highest
ethical standards

1 EICC is a registered trademark of the Electronic Industry Citizenship Coalition Incorporated

Third-party recognition
TEL’s medium- to long-term initiatives to increase its corporate value have been recognized by world-leading socially
responsible investment (SRI) institutions.
In fiscal 2017, TEL was selected for inclusion in the DJSI2 Asia Pacific 2016. We also received the Bronze Class distinction in
the RobecoSAM Sustainability Award 2017. Furthermore, we were once again selected as a constituent of the UK-based FTSE
Group’s FTSE4Good3 Global Index.

2 DJSI (Dow Jones Sustainability Indices): Environmental, social and governance (ESG) investment indices developed by U.S.-based S&P Dow Jones Indices LLC and Switzerland-based RobecoSAM AG.
The Asia Pacific index covers companies in that region.
3 FTSE4Good: An index related to environmental performance and corporate social responsibility developed by the UK-based FTSE GroupTOKYO ELECTRON SUSTAINABILITY REPORT 20178

Material issues

Process for identifying material issues
TEL identifies material issues that are crucial for further improving its corporate value. To identify the issues, we take into
account social issues, stakeholder expectations, the business environment and the company position. For each material issue,
we set medium-term and annual goals, and implement various projects aimed at achieving those goals.

Social environment

Business environment

We describe various social issues
to be resolved.

We describe the businessenvironment surrounding TEL.

Identifying material
issuesExtraction ofmaterial issues
Examination of validity

Advancement ofdream-inspiring
society

Stakeholder engagement
Through communication, we keep track of the issues focused on by stakeholders.

Identification ofmaterial issues
Performance ofbusiness activities

Medium-term management plan
We have established a medium-term management plan with a target year of fiscal 2020.

PDCA

Improvement ofcorporate
value

Analysis of risks and opportunities

Social environment
Growth of the global economy does not rest solely on developed countries. Recently, the global economy has also been
supported by growth in emerging economies such as India and China. This rapid economic growth has led to a number of newissues for humankind, including more concentration of people in urban areas, depletion of food and energy resources, global
warming, and declining birthrates and aging populations in developed countries. In dealing with an ever-changing environmentand social issues, companies must collaborate and contribute to the resolution of these issues through their business activities.
We are committed to helping resolve social issues highlighted in the Sustainable Development Goals (SDGs) agreed upon by
the international community, the Ten Principles of the UN Global Compact, the EICC Code of Conduct, the Global Reporting
Initiative (GRI), and advice of the World Economic Forum and third-party organizations.

Sustainable Development Goals (SDGs)
Adopted by the United Nations in 2015, the SDGs areuniversal goals to protect our planet for a better future.
They are a set of 17 goals and 169 targets to be achievedby 2030 with a philosophy of ensuring that no one is left
behind.

Tokyo Electron Limited supports the SDGs.

9

TOKYO ELECTRON SUSTAINABILITY REPORT 2017

Stakeholder engagement
Building firm stakeholder trust is essential to raising corporate value. To help stakeholders more deeply understand theprogress of its business initiatives and the future direction of its business, TEL discloses highly transparent information in a fair
and timely manner through regular briefings and its corporate website. We also work to accurately understand the opinions
and demands of stakeholders and to reflect these in our business activities through dialog, surveys and designated contact
points. We will continue to actively promote stakeholder engagement, using it to appropriately inform decision making in thecourse of everyday business activities, and thus further raise corporate value.

Stakeholders

Key communication methods

Key opinions and requests


Shareholders/investors arnings announcement
E
ESG surveys
Interviews







CustomersSuppliersEmployees



Local communitiesT echnology conferenceCustomer satisfaction survey
Interviews
Production update briefing/Partners
day
S TQA* audit
Interviews
 mployee meetings
EGlobal engagement survey
Interviews

 ommunity contribution activities
CTours of factories and offices

























Governments/
associationsI ndustry group activities
Collaboration with various initiatives edium- to long-term business outlook and measuresM
for improving performanceCorporate governance leading to medium- to longterm growthInitiatives for reducing environmental impact
Accurate understanding of customer needs roposal of high-value-added solutions
PCoordination of information within the GroupS tandardization of operations within the company
Greater promotion of collaborative systems
Increased opportunities for communication

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

Key relevant material issues











Enhancing product competitivenessS trengthening earnings powerEstablishing a sustainable
management platform einforcing responsiveness toRcustomers
Strengthening earnings powerS trengthening earnings powerEstablishing a sustainable
management platformInvigorating people and workplaces ommunity revitalization
CCreation of employment opportunities
Proper environmental operations
 reation of innovation leading to the resolution ofCsocial issues
Initiatives for respect for human rights
Responsible procurement











Invigorating people and workplaces stablishing a sustainableEmanagement platform nhancing product competitivenessEInvigorating people and workplaces
Establishing a sustainable
management platform* STQA: Supplier Total Quality Assessment

Example of communication: Employee meetings
Employee meetings are held regularly at each TEL factory and office as a way for senior management to communicate
directly with employees. Over a four month period during fiscal 2017, the Representative Director, President & CEO and othermembers of senior management visited overseas subsidiaries as well as factories and offices in Japan to explain our businessenvironment and management policies. During these visits, they also participated in panel discussions and other employee
exchanges.
Feedback from participating employees showed that about 80% were satisfied with this engagement with senior
management. Comments included, “It was worth hearing directly from top management about the direction the company isaiming for,” and “I want management to boost employee motivation even more.”

TOKYO ELECTRON SUSTAINABILITY REPORT 201710

Business environment
The environment surrounding semiconductors produced by using TEL equipment is at a turning point moving toward a newera. With advances being made in IoT, with a huge variety of devices connected to networks, the rate of IP traffic* is projected
to grow 24% annually. While the volume of information handled is growing with the increased popularity of cloud services, atthe same time, the uses of semiconductors are becoming more and more widespread. New uses include automated driving,which requires a high degree of reliability, DNA analysis in medical and biotechnology fields, and computer applications basedon artificial intelligence and new technologies such as AR and VR.
Meanwhile, as LCD TVs and smartphone screens become increasingly larger, it is expected that there will be greater demandfor FPDs with higher resolution and lower power consumption. Organic electroluminescent displays have also been gaining
attention from the perspective of increasing screen size and the degree of processing flexibility. With the evolution of IoT andthe growing use of displays as interface devices—rather than merely as display devices—massive real-time systems centeredon semiconductors and FPDs are set to be built across the whole of society.
Amid such a business environment, the functions fulfilled by semiconductor and FPD production equipment are growing
ever more broad. Also essential are existing general-purpose technologies capable of meeting increasingly diverse technologicalneeds that will only expand with the IoT. As required technologies become more advanced, the need for our comprehensive
capabilities as a production equipment manufacturer will increase. Having multiple product lines will enable us to offer a rangeof solutions by combining more than one product, and could expand business. In terms of environmental aspects and asset
management, there is an increasing need to reconstruct and upgrade sold equipment, to improve equipment productivity
through remote diagnosis, and to promote a business model that covers the entire lifecycle of equipment. Also, in line withmoving toward smart fabs in the future, there is an increasing need to make equipment smarter through the use of artificial
intelligence.
* IP traffic: The amount of data sent and received on a network

2021
IP traffic
CAGR

24%

Cisco Visual Networking Index: Forecast and Methodology, 2016–2021

Medium-term management plan
TEL has established the medium-term management plan for the period to the end of March 2020.
Medium-term vision

A truly global company generating high added value and profits in the semiconductor and flat panel display industries
through innovative technologies and groundbreaking proactive solutions that integrate diverse technologies.
There are three things we regard as important under our medium-term
management plan: providing high-value-added products with a focus on thenext generation, based on our advanced technology development capability;
strengthening our responsiveness to customers and being an irreplaceable
strategic partner for customers; and ensuring world-class profitability by pursuingstreamlined operations. With these three items as key pillars of our medium-term
management plan, we are promoting efforts on a company-wide basis.

11

TOKYO ELECTRON SUSTAINABILITY REPORT 2017

Enhancingproduct
competitiveness

Reinforcing
responsivenessto customers

Strengthening
earnings
powerRisks and opportunities
Social issues, stakeholder expectations, and the surrounding business environment are key inputs to our medium and longterm plans. The following risks and opportunities have been determined to have a considerable impact on medium- to longterm business operations.
Environmental issues including climate change
Climate change is an issue requiring action on a global scale. Demands to reduce greenhouse gases are increasing due toincreased global warming as well as floods and water shortages caused by abnormal weather, all increasing the burden on
business. Any tightening of environmental laws and regulations also leads to changes in products, responses at factories andoffices, and increases in associated costs. At the same time, promoting efforts against climate change leads to the provision ofoutstanding environmentally friendly products and reductions in operation costs.
Evolution of technology
In this industry, technological innovation is fast. Responding to change and creating innovative technologies is crucial. If suchtechnologies cannot be created in a timely manner, there is a risk of losing product dominance, an adverse impact on profits.
Conversely, responding appropriately to technical diversification and evolution enables the provision of high-value-added
products.
Changes in population trends
To continue growing in the medium to long term, recruiting and retaining personnel is particularly important, especially amid
issues such as dwindling birthrates and aging populations in developed countries and educational gaps caused by poverty
and economic disparity. Being unable to recruit necessary personnel could result in a diminished ability to undertake highly
specialized development or to provide service support. On the other hand, for an appealing company where employees candemonstrate their full potential, having various measures and systems in place can help it to secure excellent talent and further
bolster its competitiveness as a company.
Sustainable business management
Governance is an important part of business continuity. Negligence in compliance in particular could affect business continuity
because of legal penalties or damage to the corporate image. Sound and highly transparent business management builds solid
relationships of trust with stakeholders and leads to opportunities for further growth.
Supply chain management
As the importance of social responsibility in supply chain management increases, companies are seeking responsible
procurement activities across their entire supply chain. Failing to observe laws, regulations, industry codes, and other standards
could hinder the stable supply of parts and materials and adversely affect the company’s production system. In contrast,
proactive supply chain management facilitates a sound and sustainable supply chain and brings with it a win-win relationshipwith suppliers based on trust.
Along with minimizing risk in our business operations, we are committed to enhancing corporate value through a variety of
initiatives that lead to further growth.

Social trends

Risks for TELEnvironmental
issues including
climate change

Evolution oftechnology

Changes in
population trends

Sustainablebusinessmanagement

Supply chain
management

 esponding to globalRwarmingCompliance withenvironmental laws
and regulations
 eeping up withK
the speed anddiversification oftechnologyS ecuring humanresources

Negative consequences















 ffectiveness ofEgovernance esponsibleRprocurement reaches of laws andB
regulations
Increases in business costs

 eduction in productRdominance

 ecline in development andDsupport capability
Ethics and complianceviolations
 eakening of monitoring andWchecking functions

Weakening of supply system

Opportunities













 eduction of operational costs
RImproved environmental
performance of products enerating innovative products
Gand services

 nhancing corporateEcompetitivenessS ound and highly transparent
management

 reation of new value throughCcollaboration

Our initiatives

















 nvironmental contribution of products
E(P20)
Environmental management (P45, 46)

 hallenging technological innovation toCcreate value (P17–19)

I nvigorating people and workplaces(P33–37)

Corporate governance (P40, 41)
 thics and compliance (P41, 42)E

Initiatives with suppliers (P31)S upply chain management (P47, 48)

TOKYO ELECTRON SUSTAINABILITY REPORT 201712

Identifying material issues
Together with external experts, TEL considered the relevance of the identified material issues from the perspectives of social
issues, stakeholder views, the business environment surrounding the company, its corporate philosophy, management policies
and medium-term management plan, as well as risks and opportunities. As a result, we determined that the materials issues
identified in fiscal 2017 remain relevant for fiscal 2018. We have clarified medium-term goals for each material issue, and haveset separate themes and short-term priority targets for each goal.

Examination of validity(key opinions and advice obtained from Review Council)

Identifying material issues
Perspective of social issues and stakeholders

The five material issues are the three issues linked to themedium-term management plan in addition to “invigorating people
and workplaces” and “establishing a sustainable management
platform.” These continue to be tied to our management strategy
from fiscal 2017.
The fiscal 2017 materiality issues demonstrate further progress, suchas the setting of new medium-term goals.

Identification ofmaterial issues

We aim to set goals that demonstrate our assertive stance, such as
innovative proposals that create new customer value.
Amid a shrinking labor population, we need to promote initiatives forrecruiting and retaining excellent talent who can contribute toimproving intellectual productivity.
Given the prominent global trend of integrating non-financial initiatives
into management, we will strengthen our activities and disclosure.











Enhancing productcompetitiveness
Reinforcing responsivenessto customers
Strengthening
earnings power
Invigorating people
and workplaces
Establishing a sustainable
management foundation
Perspective of business
continuity and growthMaterial issues and CSR goals

Fiscal 2017
Material issues

ThemesInnovation

Enhancing productcompetitiveness

Environmental
contribution of products
Customer satisfaction

Reinforcing
responsiveness tocustomers

Quality

Maximizing dreams
and drive









Maintain development costs at the fiscal 2016 level
Continue initiatives to reduce per-wafer consumption ofenergy and pure water by 10% by fiscal 2019 (as comparedwith fiscal 2014)
Get 3 points or more on a 4-point scale for every item in thecustomer satisfaction survey
Implement PDCA1 training and disseminate the TEL 6-Step
model

Results










Information security

Strengthening
earnings power

Main annual goals

Streamline operations

Create an invigorating
workplaceSocial contribution









Compliance and ethics







Establishingsustainable
operations

Business continuity
management

SafetyEnvironmental
management

Supply chain
managementAchieved goal for three models (CLEAN TRACK TM LITHIUS ProTM Z, PrecioTM XL andCertas LEAGATM) ahead of scheduleAchieved for 67.6% of items (5% improvement year-over-year)
PDCA training: Implemented to employees at all TEL Group business sites. Attended
by 89% of employees (as of April 2017)
TEL 6-Step: Implemented courses for key members at main locations in TEL Group

Ensure all target employees take a training course in
information security

Achieved attendance rate of 100%

Maintain the number of TPM programs at the fiscal 2016 level

Maintained programs at the fiscal 2016 level

Provide a workplace that supports continuous growth while
ensuring performance-responsive, scrupulously fair treatmentof employees
Maintain the number of social contribution programs at the
fiscal 2016 level









Corporate governance

Maintained development costs at the fiscal 2016 level (fiscal 2017: ¥83.8 billion)

Improve the operation of the Board of Directors throughannual effectiveness evaluations
Ensure all employees complete training courses in businessethics and compliance
Provide business continuity plan (BCP) training at principal
manufacturing sites and headquarters, revise the BCP manualand implement safety confirmation system training (all to be
performed annually)
Ensure that the number of workplace injuries per 200,000
work hours (TCIR) is less than 0.5
Reduce energy consumption by 1% from the fiscal 2016 level(on a per-unit basis 2)
Maintain water consumption at the fiscal 2012 level(on a per-unit basis)
Reinforce supply chain management through supply chain CSR
assessment

















Implemented the TEL Global Engagement Survey
Introduced healthcare platform Pep Up

Maintained programs at the fiscal 2016 level (fiscal 2016: 242, fiscal 2017: 254)
Reviewed resolutions by the Board of Directors, promoted delegation to executive
management, and increased discussion time
Briefed outside officers on draft proposals and background information, helping tostimulate discussion
98% attendance (as of the end of March 2017, in Japan only; overseas companies willcomplete this training by the end of June 2017)
Carried out BCP training and safety confirmation training and revised the BCP
manual at main locations

Achieved less than 0.5 (fiscal 2017: 0.28)
Energy consumption: Reduced by 0.1% from the fiscal 2016 level
Per-unit target: Achieved at 7 out of 11 business sites
Water consumption: 11% reduction compared to base year level
Per-unit target: Achieved 10 out of 14 targets
Assessed key suppliers accounting for more than 80% of our procurement spend
Improvements in rating scores and rating grades were observed at 59% and 17% of
suppliers respectively

1 PDCA: A method for continuously improving business processes by repeatedly carrying out the four stages of Plan, Do, Check, and Act
2 Per-unit basis: A figure obtained by subtracting environmental impact from closely-associated measurements such as production volume, personnel, and total building floor area

13

TOKYO ELECTRON SUSTAINABILITY REPORT 2017

Material issues










 nhancing productEcompetitivenessIn the industries in which TEL operates, technological innovation advances very quickly. We must keep pacewith this innovation while continuously offering high-value-added products that accommodate nextgeneration technologies. By globally engaging in cutting-edge technological development, we can releasecompetitive products in a timely manner.

Reinforcing
responsiveness tocustomers

As new markets emerge–most notably those created by the Internet of Things (IoT)–customer demands
are diversifying, and expectations for equipment performance are rising. Accurately understanding
customer needs and delivering solutions that meet these needs is crucial. We strive to reinforce our
responsiveness to customers so that they will see us as an irreplaceable strategic partner.

Strengthening
earnings power

Profit is the engine that advances business activities. TEL works to continuously generate profit byproviding high-value-added products and services and improving business processes. The ongoing
generation of profit drives virtuous cycles, including reinvestment in business and the return of value
to shareholders, employees and society at large, helping to make both our company and society moresustainable.

Invigorating people
and workplaces

People are an especially important management resource. Employees who feel purpose in their work andtake pride in their company help to increase productivity and power corporate development. By promoting
diverse work styles and helping employees build their careers, we are increasing employee engagement andinvigorating our people and workplaces.

Establishinga sustainable
managementfoundation

The establishment of a solid management foundation that underpins corporate activities is key tosustainable growth. To create new value through our business and help address social issues, we steadily
operate a highly effective governance structure. By doing so, we implement sound, highly transparent
management.

Fiscal 2018Material issues

Enhancing productcompetitiveness

Reinforcing
responsiveness tocustomers

Strengthening
earnings power

ThemesTechnological innovation
aimed at creating value

Main annual goals

Environmental contributionof products
Accurate grasp of customer
needs
Solutions that create value
for customers

High quality products
Increase added value ofprocesses













Ensure that 5% or more (three-year moving average) of all equipment models are
new products for next-generation technologies
Maintain the previous year’s global patent application rate
Reduce per-wafer consumption of energy and pure water by 10% by fiscal 2019 (ascompared with fiscal 2014)

Medium-term goals

Relevant SDGs

Create highly competitive
next-generation products

Get 3 points (“Satisfied”) or more on 100% of customer satisfaction survey items

Increase TEL’s value to customers
Increase field solutions business sales from the fiscal 2017 level

Become an irreplaceable
strategic partner

Reduce quality improvement costs from the fiscal 2017 level
Revise business processes to reduce man-hours used for sales operations fromthe fiscal 2017 level

Improve operational efficiency

Human rights and diversity

Invigorating people
and workplaces

Work-life balance

Human resource
development

Retain 100% of new employees for the first three years
Reach 70% paid vacation usage
Increase the use of the Group’s “Pep Up” healthcare platform from the fiscal 2017
level

Maximize dreams and drive

HealthCorporate governanceEstablishinga sustainable
managementfoundation

Safety management

Improve on issues identified in evaluations of the effectiveness of the Board of
Directors
Revise the internal reporting system (set up new external hotlines, revise range of
persons covered, etc.)

Ensure that the number of workplace injuries per 200,000 work hours (the total
case incident rate) is less than 0.5
Build a management foundation
for increasing value

Environmental
management

Supply chain management







Reduce energy consumption by 1% from the fiscal 2017 level (on a per-unit basis)
Maintain water consumption at the fiscal 2012 level (on a per-unit basis)

Implement supply chain CSR assessments for 80% or more of suppliers(procurement volume basis)

TOKYO ELECTRON SUSTAINABILITY REPORT 201714

Enhancing
product
competitivenessMedium-term goal

Create highly competitive next-generation products
Priority themes

Technology innovation
aimed at creating value

Environmental
contribution of products

Relevant SDGs
Industry,
innovation andinfrastructure

15

TOKYO ELECTRON SUSTAINABILITY REPORT 2017

Climate action

TEL’s research and development
Pursuing innovation for the future
TEL is holding lively discussions regarding technology for the future as well as its contribution in order to prepare for a new era ofgreater familiarity with electronics and greater reliance on semiconductors. Using our technologies, we will add to the development ofsemiconductors with increasing importance across all industries, contributing to a richer, more vibrant society.

Solution provider for
all industries
Solution provider for thesemiconductor industry

Now

FutureGlobal development sites
Japan

Tokyo Electron Yamanashi
U.S.

Tokyo Electron Kyushu
Korea

Tokyo Electron Tohoku

TEL Technology Center Korea

Tokyo Electron Miyagi

TEL Technology Center, America

TaiwanTEL Technology Center, Taiwan

Singapore

IME
Tokyo Electron development sites (as of April 1, 2017)

R&D organization

R&D expenses(billion yen)

Representative Director, President & CEO

100

73.2
Development& Production
1st Division

Development& Production
2nd Division

Development& Production
3rd Division

Development& Production
4th Division

Technology
Strategy
Division

ThermalProcessing
SystemEtch System

Coating/
Cleaning, etc.
Wet Etch
SystemTesting and
FPD Dry
Etch System

Leading-edge
Semiconductor

78.6

71.3

76.2

83.8

50

0

2013

2014

2015

2016

2017

(FY)

TOKYO ELECTRON SUSTAINABILITY REPORT 201716

Enhancing product competitivenessTechnology innovation aimed at creating value
Innovative manufacturing technologies that support semiconductor evolution –3D NAND–
Mass production of 3D NAND chips, achieved through developments in manufacturing technologies,
not only enables higher performance for electronic devices such as computers and smartphones, butalso contributes to reduced energy usage. For example, if the huge number of hard disk drives1 used indata centers could be replaced by 3D NAND solid state drives,2 we could expect considerable savings in
power consumption.
As demand for 3D NAND increases, we are focused on developing technologies that support thesenext-generation products. The density3 of semiconductors is usually increased by reducing circuit line
width. However, the circuit line width of NAND devices is currently around 15 nanometers4 resulting
in an extremely low number of electrons being stored in each cell (memory element). Therefore weare reaching the physical limit of what is possible by reductions in line width. As a solution to further
increase density, semiconductor chip cells are stacked three-dimensionally in 24 layers or 48 layers
to create a 3D NAND structure using shared pillar electrodes. This creates a need for manufacturing
technologies that are completely different from previous technologies.
One of these technologies is multilayer formation technology, which is used to create the threedimensional structure. 3D NAND requires the ability to lay two different layers on top of each other andthen continue building up the layers, but difficulties include how to uniformly create two different layers
on 300 mm wafers and how to control reaction to gases used in the formation process. Advanced
etching technologies specific to 3D NAND are also required to etch high aspect ratio5 holes (greaterthan 100 nanometers in diameter and 2.8 micrometers6 in depth) in the multilayer wafers.
As a comprehensive manufacturer of semiconductor production equipment with a wide range of
products, we are using our accumulated technologies to develop products that solve these various
technical issues.

2D NAND

17

TOKYO ELECTRON SUSTAINABILITY REPORT 2017

3D NAND

1 Hard disk drive (HDD): A typeof external storage device forrecording and retrieving data
2 Solid state drive (SSD): A
semiconductor disk drive using
NAND flash memory as a recording
medium. With their high speed
and low power consumption, SSDs
dramatically reduce running costs,
so demand for use in data centers isincreasing.
3 Density: The number of transistors
per semiconductor integrated
circuit
4 Nanometer: 1 billionth of a meter
5 Aspect ratio: Ratio of depth andwidth of patterns formed on wafers
6 Micrometer: 1 millionth of a meter

Making semiconductor production equipment more intelligent –AI–TEL is using AI* to make the semiconductor production equipment it manufactures more intelligent.
Semiconductor production equipment uses various fabrication processes in a nanometer-level worldthat is invisible to the human eye. We are working on visualizing this nanoscale world through thepower of data and AI helping us to understand the condition of our equipment. We are also currently
developing a range of applications that use AI to analyze the vast amounts of digital data comingfrom the equipment, including operating logs, sensors, and measurement data, to avoid unexpected
downtime, maintain equipment performance during operation, and achieve uniform accuracy whenprocessing wafers.
We already offer a TELeMetrics™ remote diagnostic service via the Internet for real-time monitoringof our semiconductor production equipment. Going forward, we will continue to evolve the equipment
to enable it to conduct self-diagnostics, adjustments, and autonomous operation.

* Artificial intelligence

Development of high value-added display production technologies–Organic electroluminescent displays–
Organic electroluminescent displays use light-emitting diodes made from organic compounds. Unlike
liquid crystal displays, organic electroluminescent displays emit light themselves when powered
rather than requiring backlights or other light sources. This gives them great potential for use as nextgeneration display devices producing high quality images with low power consumption. The organic
luminescent layer of these displays is conventionally formed using vapor deposition in a vacuum, but
our organic electroluminescent display panel production equipment employs an inkjet method to form
this layer. This method enables us to form the layer by applying only the required amount of organic
material to large glass substrates at atmosphere, which improves productivity by reducing material
usage and fine particle contamination. To meet the expected growth in demand in the large panel TVmarket, we will continue developing systems based on these cutting-edge inkjet technologies, including
drying and baking processes after applying the organic material. These systems will contribute toimproved productivity in organic electroluminescent display manufacture and further growth in themarket.

Inkjet Printing System
for manufacturing OLED panels
EliusTMTOKYO ELECTRON SUSTAINABILITY REPORT 201718

Enhancing product competitiveness

Collaborating with international consortiums
TEL collaborates with international consortiums to pursue cutting-edge technologies and enhance its
product competitiveness.
One consortium that we have been collaborating with for many years is Imec.1 Imec includes several
semiconductor production equipment suppliers as well as major semiconductor manufacturers, thelatter being our important customers. We conduct many different joint research projects with Imec
focused in areas that will lead to future innovations in semiconductors, such as new technologies, newmaterials, and lithography. Within these consortiums, globally leading semiconductor manufacturers
and semiconductor production equipment manufacturers each bring their cutting-edge knowledge tothe table, enabling effective technical innovation for next-generation production equipment.
Our collaboration with Imec has led to other collaborations with industry-leading companies.
For example, we worked with a major optical equipment manufacturer in an advanced equipment
environment to jointly develop EUV2 technologies, a leading-edge technology for lithography. Together,
we also developed immersion ArF,3 a technology that is becoming widely used for fine patternformation.
Collaborations with international consortiums like this also help us develop our own engineers. About
10 of our engineers are currently stationed locally at Imec. By working alongside world-class engineers
and researchers, including our competitors, they are honing their technical skills and better preparing forthe future.

1 Imec: Interuniversity
Microelectronics Centre is aninternational research instituteheadquartered in Leuven, Belgium
2 Extreme ultraviolet lithography(EUV): A next-generation
lithography technology
3 Immersion ArF: Immersion ArF is alithography technology that uses
argon fluoride (ArF) excimer lasers
as the light source and water as theimmersion medium between thelens and wafers

Belgium

Imec

U.S.

SEMATECH
France© CEA / Pierre Jayet

Albany NanoTech

CEA-Leti

Consortiums (as of April 1, 2017)

Protecting and using intellectual property
TEL’s basic policy for intellectual property (IP) is to increase corporate revenues by supporting
operations through IP protection. In line with this policy, we allocate IP personnel to productdevelopment centers and manufacturing facilities where research and development are performed,
as well as to corporate headquarters where our sales and marketing departments are concentrated.
These employees work closely with their departments to develop an IP portfolio that aligns with ourtechnological and product strategies. They also work to minimize the risk of IP disputes by monitoring
the competitive environment.
We file patent applications to protect and use IP effectively in the relevant countries where we andour customers operate. Our global patent application rate4 has remained high, at around 70% for six
consecutive years. In 2015, our patent application success rates in Japan and in the United States were66.5% and 72.3%, respectively.
Under our worldwide structure, we are able to build a strong, strategic portfolio. This strong portfolio
allows us to differentiate our products, enhance our competitiveness, and ultimately increase ourrevenue.

19

TOKYO ELECTRON SUSTAINABILITY REPORT 2017

4 Global patent application
rate: Percentage of invention
applications filed in multiple
countries

Environmental contribution of products
Products that contribute to a sustainable society
The total CO2 emissions from the TEL value chain (including raw material procurement and productmanufacture, transport, use, and disposal) was calculated according to the GHG Protocol.1 Emissions
arising from product use currently account for 90% of our total CO2 emissions. For this reason, we havemade it a key corporate objective to promote environmentally friendly product design, and lower theenergy consumption of our products, thereby reducing impact on the environment from product use. In
fiscal 2015, we established a goal to reduce energy and pure water consumption by 10% by fiscal 2019,using fiscal 2014 consumption as the baseline. To achieve this goal, we are working to reduce energy use
and improve overall throughput. In fiscal 2016, we reached this goal with the Triase+™ EX-II™ TiN Plus
system. In fiscal 2017, we once again achieved the goal earlier than planned with the Precio™ XL wafer
prober, the Certas LEAGA™ gas chemical etch system, and the CLEAN TRACK™ LITHIUS Pro™ Z coater/developer. In addition, the percentage of sales from energy-saving models2 increased in fiscal 2017 to93.9% of total product sales.
To further reduce the overall environmental impact of our products, we must examine our primaryequipment, peripherals, associated facilities, and management at our customers’ factories. Goingforward, it will become increasingly important to improve the operational efficiency of our equipment
and encourage overall energy-efficient operations at our customers’ factories. Therefore, we willcontinue to focus on monitoring and controlling our own energy use. We also plan to demonstrate theimportance of energy saving measures through compliance with SEMI S23, the semiconductor industry
standard for assessing energy conservation.
To meet our goals, we are promoting environmentally friendly manufacturing, development of newtechnologies, proactive measures to contain greenhouse gases, and further reductions in the use ofenergy, water, and chemicals.

1 GHG Protocol: Accounting andreporting standards for greenhousegases (GHG)
2 Based on in-house standards

Percentage of energy-saving model sales in total sales (%)
93.9
87.0
83.1

2015

2016

2017

(FY)

* Changes from last year’s report: Figures have been updated due to revision of the applicable models

Management of chemical substances in products
In order to manufacture environmentally friendly products, TEL has set up a system for managing
hazardous chemicals in products it uses. In addition, we proactively collect information on relevantlaws and regulations in Japan and abroad to properly ensure compliance. We had no legal or regulatory
violations or penalties during fiscal 2017.
When any substance of very high concern (SVHC) is present in our products at a level of 0.1% orhigher, we disclose the information appropriately, based on EU REACH3 regulations. We also provide
safety data sheets (SDS) in accordance with GHS4 requirements. To comply more effectively withregulations such as EU REACH and China RoHS,5 in April 2015, we conducted a survey of our Japanesesuppliers regarding the chemical substances contained in their products based on JAMP AIS.6 In fiscal
2017, we made capital investments to strengthen our IT systems with the aim of enhancing supply chain
management of chemical substances in products we use.
We are also focusing on employee education. We now offer a seminar on Product Compliance withEnvironmental Laws and Regulations to all employees, including not only managers but also staff
members from relevant departments. The seminar consists of an overview of frequently revised
environmental laws and regulations, lectures on target chemical substances, and comprehension tests.
In fiscal 2017, 97% of our employees took the course.
We will continue to closely monitor and appropriately respond to relevant laws and regulations
worldwide, further increasing our efforts to reduce hazardous chemical substances.

3 EU REACH: An EU regulation
pertaining to the registration,
evaluation, authorization, andrestriction of chemicals
4 GHS: Globally Harmonized Systemof Classification and Labelling ofChemicals
5 China RoHS: Chinese regulation onmaterials including lead, mercury,cadmium, hexavalent chromium,polybrominated biphenyls (PBBs),
and polybrominated diphenyl
ethers (PBDEs). Businesses are
required to provide customers with
relevant information on the use of
these materials.
6 JAMP AIS: Article Information
Sheet (AIS) promoted by the Joint
Article Management Promotionconsortium (JAMP). This sheet
is used to communicate basic
information on regulated chemical
substances contained in products.

TOKYO ELECTRON SUSTAINABILITY REPORT 201720

Reinforcing
responsivenessto customers

Medium-term goal

Become an irreplaceable strategic partner
Priority themes

Accurate graspof customer
needs

Solutions that create
value for customers

Industry,
innovation andinfrastructure

Responsible
consumption andproduction

Relevant SDGs

21

TOKYO ELECTRON SUSTAINABILITY REPORT 2017

Systems for grasping customer needs
System development
In 2016, TEL revised its organization structure to align with expansion in the global market by adding acustomer (account) overlay to the structure, previously organized primarily by product-based business
units. With collaboration between people focused on customer needs and people who are specialists in
product-specific technologies, we aim to provide more global, high-value-added services.

Representative Director, President & CEO
Corporate Senior Staff (CSS)
Global strategy personnel

Global Field
Account management

Business Unit

Development & Production

CTSPS BU

Development & Production 1st Division

ES BU

Development & Production 2nd Division

TFF BUATS BU

Regional customer
management

Development & Production 3rd Division

FS BU

Development & Production 4th Division

FPD BUTechnology Strategy Division

Three-way operation

Corporate Administration Division

Sharing information and best practices
TEL conducts company-wide knowledge sharing to enhance customer service. Knowledge management
promotes internal company sharing of tacit knowledge previously held by individuals. It encourages
innovation and improves overall productivity. By connecting different business units and overseas sitesthat might have weak knowledge-sharing capabilities, we are working to implement best practices
across the entire company to deliver high-quality services to our customers. In 2016, leaders fromacross the world collaborated as a Global Service Committee. The committee has started to develop
global standards for working time management, skills management, and education methods to improve
service levels and make the most of our approximately 3,000 service employees around the world.
Finally, we are also working to improve the quality of our business operations and sales activities by
sharing sales-related best practices and information company-wide. These sales-related best practices
include how to build highly precise order prediction systems and how to enhance the strategic thinkingof our sales professionals.

Strengthening human resources
TEL’s Global Field Division was established in 2016 and is working alongside other divisions to develop
an education system and education environment for the field engineers around the world. In addition
to learning mechanics, electronics, software, and other basic technologies used by our equipment,
field engineers develop a service mindset to see things from the customer’s point of view. This focus
supports them in further enhancing their customer support. With a comprehensive range of e-learningmaterials as well, we are creating an environment that delivers high quality training to all corners of theearth even when our equipment and other machinery is not available.

TOKYO ELECTRON SUSTAINABILITY REPORT 201722

Reinforcing responsiveness to customers

Solutions that create value for customers

Integrated solutions
TEL has a diverse range of products designed to resolve in-depth issues of leading-edge technology. As
one of the few multi-product semiconductor equipment suppliers in the world, we must continuallyprovide solutions optimized to the customer’s entire manufacturing process. These days, semiconductor
device manufacturers are facing on manufacturing devices with high productivity even down to fivenanometer generation. With our diverse range of products, we support cutting-edge development
and manufacturing operations through comprehensive and integrated solution proposals. We achieve
this by collaborating with specialists in individual equipment as well as managers who oversee thecustomer’s entire production process from a technology perspective.

Proposing solutions that overcome barriers in the manufacturing process
Recently, it has become necessary for semiconductor device manufacturers to have ultra-fineprocessing capabilities on the scale of sub ten nanometers. In order to form these ultra-fine patterns,
it is essential to have a combination of equipment carrying out various processes, together with
optimization of the overall process. One example is forming high aspect ratio contact holes for theleading-edge semiconductors. In addition to the advanced etching processes for trenches, holes, andpatternings, it is necessary to consider the integrated processes, taking into account mask structuresand mask materials. Our strength lies in our wide range of products, which enables us to provide
integrated solutions for multiple processes. Through a merger of technologies in our diverse range ofequipment, we are partnering with our customers to support cutting-edge development strategies.

Field engineers implementing workplace solutions
TEL field engineers work closely with customers’ production sites and are able to proactively propose
solutions. One of those solutions currently being implemented is predictive maintenance for coater/developer systems.* With almost 100 modules in the driver unit, lost productivity from failures and parts
replacement is a problem. This solution continually evaluates the condition of the driver unit, checking
for signs of failures or abnormalities, in order to maximize uptime of customer equipment. In addition,
our field engineers strive to deliver services from the customer’s point of view, using their familiarity
with the customer’s equipment usage to analyze alarm logs and other equipment information to offer
solutions that improve the condition of the equipment and achieve high-quality, high-availability
operation.

23

TOKYO ELECTRON SUSTAINABILITY REPORT 2017

* Coater/developer systems: Usedin the semiconductor production
process, these systems employ aphotolithographic process, whichuses the same technology as
photography, to apply and develop
photoresist

Business opportunities driven by IoT
In the era of the Internet of Things, where almost everything is connected to networks, the importanceof semiconductors is increasing. With the use of semiconductors in a wide range of fields, frommedicine to education, finance, automobiles, aviation, space, safety, and the environment, requirements
for semiconductor manufacturing equipment are also becoming more diverse. So far, demand has
centered on DRAM1 and MPUs,2 the “brains” of systems used in computers and mobile devices. With
subsequent miniaturization and high integration, semiconductor manufacturing equipment has evolved
as well. The diversification of semiconductors over recent years has led to increasing demand for highperformance semiconductors that handle big data for various applications, including servers, automateddriving, and artificial intelligence. Demand is also increasing for general-purpose semiconductors inapplications such as sensors, power devices, and discrete and analog semiconductors. At the sametime, there is increasing customer demand for equipment that employs cutting-edge technologies aswell as equipment that features standard technologies. Having delivered more than 60,000 machines
as one of the largest suppliers in the industry, we are also providing customers with TEL Certified
Used Equipment, including previous generation 300 mm or 200 mm equipment. We provide themodifications, upgrades, service, and parts needed to continue using our existing equipment. Altogether,
we are working to meet the various needs of our customers.

1 Dynamic random access memory(DRAM): A type of semiconductor
storage element for computers, etc.
2 Microprocessing unit (MPU):
Microprocessors or semiconductor
chips that mainly provide thecomputing power for computers

Data center

AI

MemoryProcessor

SensorTOKYO ELECTRON SUSTAINABILITY REPORT 201724

Reinforcing responsiveness to customers

Ensuring safety for customers
Information provision
TEL provides relevant safety information to customers to enable safe handling of products that require
hazardous chemicals or high voltage electricity.
All of our products come with a standard TEL Safety and Environmental Guidelines manual. Withconsistently organized information, this manual describes the potential risks associated with the useof our products by category, such as chemical, electrical, mechanical, and ergonomic, together withthe methods for averting those risks. The manual also describes safety measures applied to products
and recommended methods for product disposal. The manual is offered in 10 languages* to ensure thecontent is correctly understood by our customers around the world. Each product also comes with amanual detailing the procedures for avoiding product-specific risks and securing safe operation andmaintenance, thus ensuring safe use of the equipment.
Close attention must also be paid to safety when delivering our products to new customer
production lines. We check the facilities, equipment, and workplace safety standards beforehand
according to our internal rules to ensure a safe working environment prior to delivery.

Training
TEL provides its customers with training on equipment operation and maintenance procedures toensure they are able to handle TEL products safely. To meet the needs of customers around the world,
we have established training centers at various TEL sites, with approximately 80 instructors conducting
training courses including practical skills needed to work on TEL equipment. We also provide web-based
training and on-site training at customer sites. In fiscal 2017, we provided approximately 9,500 days of
training to our customers in total.
In addition, we have introduced a certification system for our instructors in order to assure we
provide high quality training. We survey participants after they complete a training course to measure
their satisfaction with the training. We then use their feedback on the training programs and equipmentused in order to continually improve our training system.

Training centers

25

TOKYO ELECTRON SUSTAINABILITY REPORT 2017

* 10 languages: Japanese, English,
German, French, Italian, Dutch,
Russian, Korean, Traditional Chinese,and Simplified ChineseCustomer Satisfaction Survey
TEL conducts a Customer Satisfaction Survey (TEL CS Survey) every year, with the goal of making
continual improvements based on customer feedback.
The survey started in 2003 with a limited number of departments. Since then, we have madenumerous improvements to the questions, survey method, analysis, feedback to customers about
targeted improvements, and overall management of the program. The survey grew to include all
semiconductor production equipment departments in 2014. The FPD production equipment divisionand overseas subsidiaries were added in 2016 to make the survey a key organization-wide initiative.
The questions are designed to allow multi-faceted analyses of customer opinions, so that feedback candirectly lead to practical improvements in the sales, development and production, and service divisions.
To ensure the survey results lead to improved customer satisfaction, in 2016, we began analyzing
the results by account and function (software, development, etc.) in addition to analyzing by product.
Results of the analysis are used by dedicated in-house personnel to respond to each specific case andto improve our services overall. Results of the function-based analysis were used to again identify
common issues related to each product. We also developed a mechanism for immediately sharing
feedback with related divisions, so that we can conduct further multi-faceted analyses and accelerate
our improvement activities.

Percentage of responses thatindicated customer satisfaction

67.6%

In the survey for fiscal 2017, which was conducted under this new system, approximately 1,300
individual customers responded for a 61.6% response rate. On a 4-point scale, we received an average of3 points or higher (Very Satisfied or Satisfied) on 67.6% of the questions, compared to 62% of questions
last year. Through this customer satisfaction survey, we take corrective action based on the valuable
feedback received from our customers, analysis results, and issues requiring improvement. We makefull use of the survey to improve our services and product development, and we continually share theresults of the survey and our plans for improvement with our customers. Our entire company is working
to drive improvements through this customer satisfaction survey.

TEL CS Survey organization and workflow
Conduct surveyof customers

Global Field
Account management

Confirm
progress ofimprovement
activities

Business Unit
CTSPS BU

Analyze survey
results

ES BU

Development & Production 2nd Division

TFF BU
Regional customer
management

Development & Production 3rd Division

ATS BU
Implement
improvement
activities
in each division

FS BU
FPD BU

Development & Production
Development & Production 1st Division

Report andinvestigate
improvement
plan

Development & Production 4th Division
Technology Strategy Division

Feedback to
customers

TOKYO ELECTRON SUSTAINABILITY REPORT 201726

Strengthening
earnings
power

Medium-term goal

Improve operational efficiency
Priority themesHigh quality
products

Increase added
value of processes

Relevant SDGs
Responsible
consumption andproduction

27

TOKYO ELECTRON SUSTAINABILITY REPORT 2017

High quality products
Quality control system
To provide consistent, high quality products, TEL has been acquiring ISO 9001 quality management
system certification at various sites since 1997 in line with its policy of making quality a top priority. Nine
manufacturing sites have achieved this certification to date. In 2016, we established a uniform Groupwide Quality Policy and since then each Group company has pursued the goal of achieving the world’s
best quality. In 2017, we will continue to work together as one to drive quality improvements.

Quality education
TEL believes that every employee needs to have a high awareness and understanding of quality. This is
why we conduct a range of education programs including the fundamental quality education that all
new employees receive.
For example, to enable employees to improve their knowledge and skills in the area of quality control,
and to improve the quality of their work, we encourage them to obtain external quality certification
through the QM/QC Exam (Quality Management and Quality Control Examination). Administered by theJapanese Standards Association and the Union of Japanese Scientists and Engineers, the QM/QC Examis a major quality certification with more than 440,000 certification holders in Japan as of March 2017.
Since fiscal 2012, this initiative has increased the number of certified employees each year to a total of
1,579 as of March 2017.
We also educate our employees around the world about the Plan, Do, Check, Act (PDCA) cycle.
Through e-learning courses, employees learn efficient process management using the iterative four
steps of the PDCA cycle. As of April 2017, 89% of our employees had completed the courses.
In addition, we have an education program called TEL 6-Step, a problem-solving model for serious
problems aimed at employees in production and service divisions. This is a customized version of theeight discipline (8D) problem-solving method* widely used in quality control. The TEL 6-step program
enables systematic and reliable analysis of problems to determine the root cause, leading to quick
implementation of countermeasures and prevention of similar problems. We currently use web-based
training for delivery, and as of May 2017, 2,751 employees had completed the program.

* 8D problem solving method: A
method for solving problems inquality improvement through eight
disciplines or processes

PDCA cycle education

TEL 6-Stepof employees haveparticipatedemployees haveparticipated89%(As of April 2017)

2,751(As of May 2017)TOKYO ELECTRON SUSTAINABILITY REPORT 201728

Strengthening earnings power

Pursuing quality at the source –GD3 design review–
TEL has adopted a front-loading approach to improve product quality. Specifically, we use the GD3 (GD
cubed) management method of problem prevention to ensure thorough risk identification from theconcept design stage. Using this method, the designer and reviewer review each stage from design andevaluation to full production and identify risks, focusing on changes from the previous designs.
When using the GD3 method, we adjust techniques and work environments to improve our ability
to identify risks. To achieve a high quality review, we need high quality reviewers, so we request theparticipation of internal experts in the review process. At the same time, our basic rule is to assign
additional people from each division to identify risks from many different angles. To improve theefficiency of discussions, we have created search tools to find past instances of problems and we use
mind mapping to be more imaginative in risk identification.
Not only do we ensure full implementation of the GD3 review process internally, we also recommend
the method to suppliers to help further enhance quality in the upstream processes.

ReviewDevelopment process

Designpersonnel

Experts

Quality,
manufacturing
and service personnel

Changes1

Design2

Prototype and evaluation

3

Mass production

Risk
identification

Safe equipment design
TEL carries out product risk assessments as early as possible in the development phase, taking theentire product life cycle into consideration. Based on the results of these assessments, we implement
intrinsically safe equipment design1 to reduce the risks posed to humans. We also examine and ensurecompliance with increasingly challenging laws and regulations around the globe and create systems for
abiding by all safety regulations of the regions where our equipment is shipped.
Equipment shipped from our factories is checked by a third-party inspection organization to ensure it
complies with SEMI S22 international safety standards. For equipment requiring CE marking,3 we acquirea Certificate of Conformity (CoC) issued by Notified Body (NB) stating conformity with the Machinery
Directive and EMC Directive.4

1 Safe equipment design: Innovative
machinery designs that eliminate
causes of machinery-related
hazards posed to humans
2 SEMI S2: The Environmental,
Health, and Safety Guideline for
Semiconductor Manufacturing
Equipment is a set of guidelines forsafe design of equipment. It is usedmainly by the leading manufacturersof semiconductor equipment in the
United States and Europe, not onlyfor ICs but also as safe procurement
guidelines for electric and electronic
device manufacturing equipment
around the world.
3 CE marking: When exporting into
the European Union, CE marking
defines rules for displaying a CE
mark as proof that the equipment issafe and complies with EU-definedrules (Directives)
4 EMC Directive: One of the New
Approach Directives that apply
to the 27 EU member states. This
directive applies to all electric orelectronic devices that are at risk ofbeing disturbed by electromagnetic
interference or that may interferewith other equipment. The current
directive is 2014/30/EU.

29

TOKYO ELECTRON SUSTAINABILITY REPORT 2017

Quality improvement cost reductions
As a key issue for enhancing earnings power, TEL implements initiatives to reduce costs associated withquality improvements that are required after equipment is shipped. Each year, we select five types ofdefects to prioritize for elimination, focusing on those that either result in a significant cost or occur
frequently. We identify the causes of the defects, whether in the design, handling, or another area, andadjust our products based on our findings.

Response to quality problems
TEL complies with ISO and EN safety standards, as well as establishing design rules applicable to its own
equipment to achieve the highest level of safety possible.
In addition to developing systems to manufacture safe products, we fulfill our mission as an
equipment manufacturer by developing systems for responding to design- or manufacturing-related
issues or accidents arising from operation-related problems. If an accident occurs, we use our S-VICS
accident reporting system to report and share information with all levels of management, from safety
and quality personnel in each division all the way to senior management. We immediately conduct anaccident investigation to identify the cause and plan preventive measures. In addition to implementing
the measures on the problem equipment, we use a proprietary system called QABOX to quickly
implement the measures on equipment operated by other customers and reflect those measures indesign standards in operation.
Response to serious workplace accidents

TEL GroupManagement
SeriousaccidentFire
department
Policedepartment
Customer
contact
point

Customer

Operations
divisions
Safetydivision
Qualityassurance
division

Report and workplace recovery

Permanent measures

Accident
reportingsystem(S-VICS)(Q-VICS)

Servicedivision

Relevant divisions
Investigation of causes and development ofrecurrence prevention measures
Investigate andidentify causes

Issue FCN1

Confirm spread

Share with Group(QABOX2)

Determine measures

Establish
implementation plan

Reflect in design
standards
Revise standards
Notify revision

1 FCN: Field Change Notice (general recall notice)
2 QABOX: TEL Group internal information sharing and horizontal
deployment tool
Accident information

Information sharing

Operations and information flow

TOKYO ELECTRON SUSTAINABILITY REPORT 201730

Strengthening earnings power

Initiatives with suppliers
Developing strong partnerships with suppliers is essential to improve product quality. Since 2000,
TEL has regularly conducted Supplier Total Quality Assessments (STQA) to clarify what is expected ofsuppliers in terms of maintaining and improving quality.
Before starting business with new suppliers, an STQA is conducted via self-assessment to evaluate
their product quality, costs, and information security. The assessment also includes CSR issues, including
human rights, ethics, safety, and the environment. If any risks to quality are found, our trained andcertified auditors visit the supplier on-site to explain the problems, our expectations for improvement,
and the level of quality we require. After the supplier understands the issues, we ask that they planand implement improvement measures in line with our written requests. We keep track of all requests
and improvement measures internally, and offer continual support to suppliers until all necessary
improvements have been made. We conduct on-site audits once every three years at suppliers who
manufacture important components and at suppliers where quality issues have been found.
We focus on change control with our suppliers. We aim to reduce the number of quality issues that
occur as a result of changes to the design or manufacturing of equipment components and modules.
We also aim to reduce the cost of quality improvements. We use change control briefings to informsuppliers of the requirement to submit a request when changes are made. We have been conducting
web-based training since 2015 to get more suppliers to understand the importance of change control inrespect to quality and to ensure they submit the required change requests. Approximately 900 people
participated in this training during fiscal 2017.
SQIP defect prevention activities
TEL works with suppliers to implement the Supplier Quality Improvement Program (SQIP), a series ofactivities designed to prevent defective components. The SQIP aims to visualize the root causes ofproblems (defect factors) and encourage independent defect prevention activities by asking each of our
suppliers to explore defects that have occurred in the past. Through this process, the program aims to
reduce the number of defects by half.
Our suppliers use the self-assessment of their quality control systems to analyze closely the sourceof previous problems in their manufacturing environments, whether in ordering, design, production,
inspection, or training. This helps them to identify weak points and make improvements to systems orwork methods.
QC Patrol
Component module manufacturing processes have a strict requirement for accuracy. Processes like
crimping work, soldering work, and terminal block connecting work have a significant impact on thesafety and service life of our equipment, yet, from the outside, it is not immediately obvious whether
they have been done correctly. We treat such processes as important tasks. In our suppliers’ production
facilities, our systems ensure that these tasks are performed by skilled employees who have passed
tests conducted by TEL-accredited trainers. Our quality and manufacturing division personnel also visit
our suppliers as part of our QC Patrol activities to check on the quality of their work. In addition to this,our technology and quality personnel join forces in a separate QC Patrol activity to inspect channel
welding work and inspect for leaks and cleanliness of gas components.

31

TOKYO ELECTRON SUSTAINABILITY REPORT 2017

Increase added value of processes
Company-wide business process re-engineering
As one of the key issues in the medium-term management plan, TEL is working to increase profits
by improving the efficiency of its operations. To achieve this aim, each business unit and overseas
subsidiary is re-engineering its business processes. They are working to acquire the necessary dataand information for management decisions and business operations more quickly and accurately by
optimizing business processes, creating standards where necessary, and optimizing those processes
across the whole company.
We have gathered experts from across our production, sales, logistics, services, accounting, andbusiness management divisions around the world. Together, we are currently conducting a multifaceted review of our business processes, including vertical processes within each division, horizontal
processes across different divisions and functions, and customer-related processes such as ordering,production, shipping, and acceptance. We plan to incorporate the results of this review into new core IT
systems, and we will start a phased rollout with a view to full utilization by 2019. By creating a businessplatform from new core systems that take into account the entire value chain, including other divisions
and customers, and at the same time eliminating waste, we aim to become a company that can drive
efficient businesses based on highly-accurate business predictions, while making strategic use of ourhuman resources, material, capital, and information.

Quality and productivity improvement through TPM
TEL has been implementing company-wide Total Productive Maintenance (TPM) for over 10 years.
The purpose of TPM is to eliminate inefficiencies, waste, and loss, and thereby improve productivity.
At the same time, it aims to change employees thinking and behavior. The TPM approach plays a rolein employee development and has been successfully integrated into our production lines. Promoted incooperation with design and administration divisions, the synergistic effects improve both quality andproductivity. TPM is also being used to improve business process quality between indirect divisions.
TPM activities that have produced outstanding results are shared company-wide at the annual TPM
presentation, with a Grand Prize and other awards to help motivate employees in their activities. Fromfiscal 2016, participants included not only teams from Japanese manufacturing sites, but from ouroverseas site Tokyo Electron (Kunshan) Limited (established in 2012) as well.

TPM presentation

TOKYO ELECTRON SUSTAINABILITY REPORT 201732

Invigorating
people andworkplaces

Medium-term goal

Maximize dreams and drive
Priority themes

Human rights
and diversity

Work-life
balance

HealthRelevant SDGs

Good health andwell-being

33

TOKYO ELECTRON SUSTAINABILITY REPORT 2017

Decent work andeconomic growthHuman rights and diversity
Human rights
TEL recognizes the importance of respecting human rights in all aspects of business activities. Our
principles for respect for human rights are established in our Management Policies and Code of Ethics
prohibiting discrimination based on gender, nationality, age, race, creed, or religion; forced labor, childlabor, and harassment. The Group aspires to create a pleasant workplace environment where everyone
can work free of discrimination by implementing employee training and establishing hotlines for prompt
awareness and resolution of activities related to human rights issues.

Workstyles of a diverse workforce
Active involvement of women
Action plan
With business operations across the globe and with overseas sales accounting for more than 80% of
total sales, TEL continues to develop work environments for a diverse workforce.
Based on the Act on Promotion of Women’s Participation and Advancement in the Workplace,
we have developed and implemented an action plan to promote the active involvement of female
employees by 2019. The action plan lists two goals for improving work conditions for both womenand men: achieve a 70% take-up rate of annual paid leave, and prevent harassment in the workplace.
As a result of efforts encouraging employees to take leave, the take-up rate of annual paid leavein fiscal 2017 was 64.1%.1 These efforts included understanding how much leave was being taken,
raising awareness for the planned use of leave, and regularly monitoring how much leave was used.
Meanwhile, the development of regulations was central to the efforts for preventing harassment.
Some subsidiaries also took steps to establish and raise the profile of help desks and advisors, as well
as reviewing and conducting effective training and education.

1 Group companies in Japan

Technology conference for women engineers
In February 2017, a technology conference for female engineers was held as an event to support
female employees. On the day, five female engineers from different areas of the company gave
presentations on their own areas of specialization and their own work styles. This event was anopportunity for the all-female audience to learn about the various roles in our company, as wellas address their worries and provide advice for their future careers. About 90 female employees
participated in the conference, with a teleconferencing system used to link our Akasaka headquarters
with our factories and offices throughout Japan.

Active involvement of people with disabilities
TEL seeks to be a corporation where a diverse range of employees can work to their full potential. We
have established an inclusive working environment for people with disabilities. People with disabilities
account for 2.13% of employees at TEL headquarters and 1.98%2 of employees in Japan operations
overall.

Employee voices

2 As of March 31, 2017

Active involvement of employees with disabilities

I joined TEL in 2015, and currently I am in charge of approval work for the export of parts. I commute to work by car, whichis less stressful for me, and TEL has given thoughtful attention to my work setup. For instance, the document cabinets areat an easy height for me to use, and my desk has been placed close to the exit so that it is easier for me to get around in mywheelchair. What pleases me most about TEL is that I am treated the same as a person without disabilities. For example, during
the recruitment screening process, I felt that I was being assessed on my skills and experience. Going forward, I will continue towork hard in order to meet the company’s expectations.

Akihiko Suzuki
Export & Logistics
Control Dept.

TOKYO ELECTRON SUSTAINABILITY REPORT 201734

Invigorating people and workplaces

Work-life balance
Workstyle reform
TEL is working to introduce a new personnel system aimed at supporting its vision to become “a real
global company generating high-added-value and profits,” as part of the medium-term management
plan. The system is designed to enable each employee to challenge themselves to meet their goals
without fear of failure, and to provide fair evaluations proportionate to individual levels of contribution.
Based on the idea that raising the engagement1 of employees is essential for sustained growth of ourcompany, the new system also aims to create a rewarding workplace environment where employees
can challenge themselves to achieve higher goals with widening global career opportunities. The new
personnel system specifies new ways of working, such as clarifying roles and expectations, enabling
employees to work more autonomously with challenging goals linked to the company’s vision, andrewarding eagerness and voluntary effort important for increased motivation. Rating, evaluation, andremuneration will be built as common global systems, enabling us to share objectives and goals among
employees worldwide. This new system will become part of standard operations in fiscal 2018.

1 Engagement: A constant feelingof pride, passion and a sense of
responsibility in one’s own workand a desire to work hard to achieve
results

Features of the new personnel system

Rating system
The system clarifies duties (the roles and responsibilities required of the employee) supporting a
global way of working
Evaluation system
The system is designed to establish performance goals appropriate to employee level andstretch goals designed to develop the employee, and it assesses the employee based onachievement of (or contribution to) those goals
Remuneration system
In addition to a level of remuneration that is competitive in the market, the system provides theemployee with career opportunities as well as a productivity-linked bonus proportionate to theirdegree of achievement (contribution)

Refreshment leave
TEL has a refreshment leave system that offers a special paid leave every five years to regular
employees with 10 or more years of continuous service. Refreshment leave ranges from two weeks to
one month.2 The purpose is to renew employees’ eagerness to work, encouraging them to refresh theirbody and mind. In fiscal 2017, 586 employees in Japan took refreshment leave.

Systems supporting flexible workstyles
TEL is committed to reducing overtime, encouraging employees to take time off, and improving thevarious leave systems. In this way, we allow employees to adopt a flexible approach to work according
to their individual lifestyle and stage in life. Amid a declining birthrate and aging population, we arefocused on enhancing our childcare and nursing care leave systems, enabling all employees to develop
their careers.
Our childcare support system in Japan allows employees to extend their leave until their child turns
three. Also, we give parental guardians an option of taking reduced work hours until their children
finish elementary school, which goes significantly beyond the legal requirement. As a result of thesemeasures, 44 employees (including two male employees) took childcare leave in Japan operations infiscal 2017, and 44 (including two male employees) returned to work after taking childcare leave inprevious years for a 93.6% return rate. About 35% of female TEL employees in Japan are successfullybalancing work and family as working mothers.

35

TOKYO ELECTRON SUSTAINABILITY REPORT 2017

2 Employees with 10, 15, 20, and 25
years of continuous service cantake a leave of two weeks, three
weeks, two weeks, and one month,respectively

Leave and other support systems for childcare and nursing care
SystemOverview

Eligible employees

Notes

Relief forcommutingdifficulties

Allows work start times and finishing times to be moved forward or back by amaximum of one hour each day

Childcare leave(1) Allows leave to be taken up until a requested date but no later than the end of April
after the child turns 18 months of age
Employees with a child who will be less(2) If the child cannot gain admission into a nursery school, leave may be extended
than 18 months of age at the end of thefrom the end of April after the child turns 18 months of age until the child turns three following April
years of age (i.e. the day before their third birthday)

More than the legal
requirement (up to a
maximum of three yearsof age)Childcare time

Allows an employee to request time to care for their infant for two 30-minute periods Female employees with an infant under
per day, in addition to prescribed rest periods (treated as paid leave)
one year of age

More than the legal
requirement (paidcomponent)

Flextime forchildcare andnursing care

Allows work start times and finishing times to be moved forward or back by amaximum of 90 minutes per day

Employees with a child who has notgraduated elementary school, or who
are caring for a family member requiring
nursing care

More than the legal
requirement (up until
the child finishes
elementary school)

Leave to care
for a sick/injured child

Allows leave to be taken for up to a maximum of five days for employees with one
child, and 10 days for employees with two or more children, per business year (up to
five days treated as paid leave)

Employees with a child not old enoughto commence elementary schoolMore than the legal
requirement (paidcomponent)Childcare
support leave

Special leave to care for a child for up to a maximum of five days per business year
(unpaid)

Employees with a child not old enoughto commence junior high school

Unique system

Short nursing
care leave

Allows leave to be taken for up to a maximum of five days for employees with one
family member requiring nursing care, and 10 days for employees with two or morefamily members requiring nursing care, per business year (up to five days treated as
paid leave)

Employees with a family member
requiring nursing care

More than the legal
requirement (paidcomponent)

Extendednursing careleave

Allows an extended period of leave to be taken for up to three times per person
requiring care, up to a maximum of one year in aggregate

Employees with a family member
requiring nursing care

More than the legal
requirement (up to one
year of leave)

Employee voices

Pregnant female employees who areunder instruction from their doctor

As per the legal
requirement

Childcare leave for men

I took 17 months of childcare leave from September 2015 to February 2017. This was due to several reasons: my strong, longstanding desire to be involved with my children, a desire to help my wife return to work as a freelance piano teacher, and the
problem of waiting for admission to a nursery school.
Seeing as it is still uncommon for male employees to take long-term childcare leave, my supervisor was surprised at first, but
happily accepted my temporary departure. People around me were also concerned about me taking leave for such a long time,
but in the end, I was allowed to return to the same marketing work as before. I am extremely grateful for this. I would be glad if
the option of taking childcare leave continues to be afforded to male employees. I plan to take the joyful experience of spending

Masahiro Atsumi

many days close to my newborn, and apply it to my work and life in the future.

Marketing Department 1, TFF

Human resource development
TEL UNIVERSITY
To enhance its HR development and organizational capabilities, TEL has established a corporate
educational institution called TEL UNIVERSITY. The curriculum includes courses that provide worldclass knowledge and skills, training programs for next-generation leaders, and courses for developing
managerial and organizational capabilities.

TEL UNIVERSITY
Programs (Fiscal 2017)
Number ofparticipants
New hire training (full year)
71
Junior employee programs

Main activities in fiscal 2017

310

With career level-specific programs, TEL has started “step-up” activities for junior employees. These
employees set their own work theme, establish challenging targets, plan ideas for related activities, andaccomplish work with their supervisors and colleagues. These “step-up” activities provide opportunities
for learning and awareness with the aim of nurturing independency at work within two years of joining
the company.
In these purpose-specific programs, TEL experts lead a wide variety of workshops to share specificknowledge within the company. Other efforts this year included using our internal skills and talents tomake improvements to new hire training and to promote completion of e-learning and correspondence
courses designed to develop skills needed for the work environment (including language skills).
Life design seminars have also been held every year, targeting employees eligible for retirement.
The programs provide knowledge and information necessary to prepare for leaving work, such as preretirement preparation and post-retirement financial planning. They include seminars with a number of
Q&A-type sessions to help dispel doubts and anxiety about retirement.

Manager programs
78
Business leader programs
60
Workshop for engineers
333
Technical seminars
735
Business skills programs
807
Practical English courses
306Life design seminars
220

TOKYO ELECTRON SUSTAINABILITY REPORT 201736

Invigorating people and workplaces

Visionary Talks
Since 2015, TEL has hosted internal events called “Visionary Talks.” In these seminars, we invite experts
and specialists from various fields to speak freely on their vision for the future.
The event is a great opportunity for employees to expand their creativity and imagination forenvisioning the future, by allowing them to hear the experiences and feel the enthusiasm andconviction of leading figures in a variety of fields, including science, technology, art, and sport. At
Visionary Talk 2016 in November, five guest speakers were invited to our headquarters in Akasaka,
Tokyo. The talk was attended by 200 employees in person and streamed to our offices in Japan, Korea,
China, Taiwan, and Singapore, providing more than 900 employees with flashes of inspiration for the
future. Visionary Talk also serves as an opportunity for collaboration with external parties in researchand development in areas such as artificial intelligence.

HealthWellness declaration
In February 2012, TEL announced its wellness declaration based on the view that the health andsafety of employees is paramount. In accordance with this declaration, we have conducted a numberof ongoing wellness initiatives, including the establishment of health help desks, the provision ofcounseling services, and the introduction of stress checks. We also offer walking events, healthy foodchoice initiatives for company cafeterias, and body composition measurement sessions.
Since 2016, we have promoted the improvement of employees’ exercise habits. At nine of ourfactories and offices in Japan, we are developing an Eat-Rest-Walk-Talk program, which proposes that
employees spend every day in a healthy way, incorporating some kind of regular exercise into their daily
activities.

Eat

Three balanced
moderately-sized
meals every day

Alcohol inmoderation
Two days every week
without alcohol

Sleep

Walk

Understand

Rest

Climb

Talk

Recharge throughquality sleep time
Vary the pace of yourday to improve
efficiency

No smoking

Target 10,000 steps
every day
Use the stairs at work

Enjoy

Have a health checkevery year

Talk with others rather
than dwelling on a
problem alone

A change of moodthrough a hobby

Quit now for your future

Stress checks
Since being mandated by law in December 2015, TEL has offered stress checks to employees at eachfactory and office in Japan. Employees complete a questionnaire recommended by the Ministry of
Health, Labour and Welfare, and if judged to be under high stress, they are given face-to-face support
by a public health nurse or occupational health physician. The stress check conducted in July 2016 was
taken by about 90% of employees.

Introduction of the Pep Up healthcare platform
As part of the national requirement for new health management systems, TEL actively promotes
activities for improving employee health based on collaboration between employers and healthinsurance societies. In 2016, we introduced the Pep Up personal healthcare platform. By using thissystem, individual employees can easily check health information such as the results of their medical
checkups and itemized details of their medical expenses. The various support offerings also include
enabling employees to record their daily health management data (weight, blood pressure, body fat
ratio, length of sleep, etc.) as well as recommended activities to suit their state of health (walking andrunning events, fitness centers, etc.). In collaboration with the health insurance society, we will continue
to push for a broader user base of Pep Up, raising the health awareness of employees.
37

TOKYO ELECTRON SUSTAINABILITY REPORT 2017

TEL’s social contribution activities
TEL conducts social contribution activities around the world. Through various initiatives, we strive to build solid, trustworthy
relationships with community members to help develop local communities and resolve social issues at the global level. In this, we willdevelop a rich, dream-inspiring society and enhance our corporate value.

Initiatives around the world
With Innovation and Technology, Education, Environment, and Community Involvement as the four focuses of our social contribution,
we conduct activities that best meet the requirements of each locality.
Innovation and Technology: Semiconductor scholarship(Korea)Through a program run by the Korea Semiconductor Industry
Association (KSIA), an organization that focuses on developing humanresources in the semiconductor sector, TEL granted scholarships tooutstanding students recommended by universities. One student isselected every year andawarded the scholarshipon Semiconductor Day.
This year marks the ninth
occasion since 2008.

Education: SEMI High Tech U (U.S.)
A High-Tech Career Exploration Program was held at the Austin office inthe United States, where students could have fun experiencing cuttingedge technologies with practical applications. About 30 local highschool students participated in the program, which featured educational
materials provided by SEMI,a global industry association
serving the electronics
industries, and interactedwith employees from ourAustin office over the threeday period.

Community Involvement: REWE Team Challenge(Germany)

Environment: Tree-planting activities (Japan)
Tokyo Electron Technology Solutions’ Tohoku Office has been planting
trees in nearby sites. In 2016, about 700 oak seedlings and five memorial
cherry trees were planted. Two hundred and seventy employees
and family members
participated in the event,
providing an opportunity forworkers and their families
to deepen their friendships
with each other.

Twenty employees teamed up with clients to participate in a
5 km charity marathon run through the city center of Dresden,
strengthening the ties between them.

Kumamoto Earthquake relief efforts
TEL actively provided a wide range of support to those affected by the April 2016 Kumamoto Earthquake to help bring stability to theirlives and restore their communities as soon as possible.
Relief supplies and livelihood support
Amid the tremendous damage to the transportation infrastructure, TEL made full use of its
trucks and warehouses to swiftly deliver daily necessities, water, food and other goods fromacross the country. At the affected areas, we offered our recreational facilities as support basesand evacuation centers and provided assistance activities to employees and local communities.
Donations
A total of 100 million yen in donations was presented to Kumamoto Prefecture.
Matching donations
To support efforts aimed at matching funds for reconstruction, TEL matched donations
collected from employees around the world. The donations were distributed to affected
employees, and emergency supplies were donated to surrounding municipalities.
Charity concert
A charity concert was held with the hope of using music to raise the spirits of thoseaffected by the disaster. Employees and volunteer staff worked to transform two
gymnasiums of local junior high schools into concert halls. For two days, the concert was
enjoyed by 1,600 students, local residents, and employees and their families.
TOKYO ELECTRON SUSTAINABILITY REPORT 201738

Establishinga sustainable
managementfoundation

Medium-term goal

Build a management foundation for increasing value
Priority themes

Corporate
governance

Safetymanagement

Environmental
management

Supply chain
management

Relevant SDGs

Decent work andeconomic growth

39

TOKYO ELECTRON SUSTAINABILITY REPORT 2017

Climate action

Peace, justice andstrong institutions

Corporate governance
Governance framework

URL www.tel.com/ir/policy/cg/index.htm

TEL has a medium-term vision of becoming “a truly global company generating high-added-value
and profits through innovative technologies and groundbreaking solutions with diverse integrated
technologies.” We believe it is important to build a governance framework that supports our mediumterm vision.
Our governance structure consists of a Board of Directors and an Audit & Supervisory Board. Effective
governance is achieved through the supervision of management by the Audit & Supervisory Board.
Based on this organization structure, we have also established systems that will facilitate growthoriented governance directed at sustainable growth, including the following.
 
The Board of Directors: to make major operational decisions and play a supervisory role in theexecution of those decisions
 
The Nomination Committee and Compensation Committee: to ensure fair, effective, andtransparent management 
Corporate Senior Staff (CSS): to formulate and advance company strategy
Directors work to achieve sustainable growth and increase corporate value over the medium to longterm based on their fiduciary responsibility to shareholders. The current Board of Directors meetingsachieve an appropriate sense of productive tension and constructive debate due to the combinedpresence of executive directors, essential for making operational decisions, and outside members, whoprovide objectivity.
The Audit & Supervisory Board is part of a structure that enables its board members to obtainsufficient information necessary for audits by collecting information through on-site surveys conductedby full-time Audit & Supervisory Board members, and by maintaining appropriate coordination with
the Internal Audit Department and independent auditors. In addition, the composition of Audit &Supervisory Board members provides a good balance of knowledge required for operational audits andaccounting audits, and we believe these board members are able to perform the company’s auditing
functions effectively.
Corporate governance framework, internal control system and risk management system
Shareholders' Meeting
Cooperate

Board ofDirectors

Audit &
Supervisory Board

Compensation Committee Chief Business Ethics Director Chief CSR Promotion Director
Nomination Committee
Chief Internal Control Director

Request for improvement/Report

Representative
Directors
Request for
improvement/ReportCompliance & Internal Control Executive Officer
CSR Promotion Executive Officer

Confirm the progress of improvements
and give instructions

Independent
Auditors

Cooperate

Audit and
improvement reports

CSS &Executive Officers

Internal Audit Dept.
(Global Audit Center)

Committees
Ethics Committee
Information Security Committee
Export Trade Control Committee
Request for improvement/Report

Audit

CSR Management Council
CSR Global Promotion Committee
Risk Management &Internal Control Function(General Affairs Dept.)
Request for
improvement/Report

Monitoring

Administrative Depts.

Check and balance

Business Depts.

TOKYO ELECTRON SUSTAINABILITY REPORT 201740

Establishing a sustainable management foundation

Evaluating the effectiveness of the Board of Directors

URL www.tel.com/news/2017/0512_004.htm

TEL discusses and evaluates the effectiveness of the Board of Directors every year in accordance with
the TEL Corporate Governance Guidelines. Following is a summary of the evaluation conducted on theeffectiveness of the Board of Directors for the period June 2016–April 2017.
1. Method of evaluation
A survey on the effectiveness of the Board of Directors, the Nomination Committee, and theCompensation Committee was given to all directors and Audit & Supervisory Board members. Opinions
on the effectiveness were exchanged and discussed among mainly outside directors and outside
Audit & Supervisory Board members before being shared with the entire Board of Directors where theeffectiveness was evaluated.
2. Results of analysis and evaluation
At Board of Director meetings, the CEO and executive directors present periodic reports. In addition,
discussion topics are set on any issues concerning the Board of Directors. These topics are keenly
debated by directors and Audit & Supervisory Board members based on their diverse insight andexperience. Draft proposals presented by executive management are fully discussed by the Boardof Directors after receiving feedback from outside directors and outside Audit & Supervisory Board
members. As a result, some proposals are passed as draft amendments and are subject to a free andopen-minded exchange of views and substantive discussion.
Based on recognition of this situation, we believe that our Board of Directors is functioning effectively
and fulfilling its role as stipulated in the TEL Corporate Governance Guidelines.
3. Challenges and policies going forward
We will increase the amount of quality time spent discussing our Group’s direction and strategies,
including any important management issues, as well as our medium- to long-term management andgrowth strategies. Based on this year’s evaluation of effectiveness, we will also strive to further improvethe effectiveness of the Board of Directors, including enhancing opportunities for outside directors andoutside Audit & Supervisory Board members to exchange their views. In addition, the Board of Directors
will continue to discuss and review its composition and operation based on diversity.

Business ethics and compliance
Compliance system
TEL has formulated the Code of Ethics of the Tokyo Electron Group as a set of uniform standards togovern all of its global business activities. As well as appointing a Chief Business Ethics Director, wehave established the Ethics Committee comprised of the Chief Business Ethics Director, the Ethics
Committee Chairman, and presidents of major Group companies in and outside Japan, and are making
every effort to promote business ethics awareness throughout the Group.
In addition, we have appointed a Compliance & Internal Control Executive Officer from among our
executive officers to raise awareness of compliance across the Group and further improve Groupwide compliance. Each Group company has also drawn up its own compliance regulations, setting out
basic compliance-related requirements in line with the Code of Ethics. The compliance regulations
are intended to ensure that all individuals who take part in the business activities of the Group clearly
understand the pertinent laws and regulations, international standards and internal company rules, andconsistently apply these rules in all of their activities.

41

TOKYO ELECTRON SUSTAINABILITY REPORT 2017

Compliance education
Through the TEL Group’s e-learning system, we provide the web-based training programs covering
the basics of compliance, export-related compliance, protection of personal information, the Act
for Subcontracting and other topics. All executives and employees are required to complete these
programs. In addition, other web-based programs tailored to specific positions and job roles areavailable, including those on insider trading and the Social Security and Tax Number System.
We also have a quiz-based business ethics and compliance education course, launched in fiscal 2014,
for all Group executives and employees. Updated yearly, the quiz is intended to maintain complianceawareness throughout the Group and disseminate the latest information.
In addition to these web-based courses, we organized in-house seminars in fiscal 2017 for Corporate
Directors and executive officers on the subjects of compliance and internal control.

Internal reporting system
The TEL Group has an internal reporting system that employees can use to report any activity suspectedof being in breach of laws, regulations or business ethics. An ethics hotline and a compliance hotline
have been established to receive reports from all Group companies, and each overseas location also has
its own reporting system. In all instances, the system ensures that whistleblowers remain anonymousand are protected from any disadvantage or repercussions. There were no reports or cases of noncompliance with laws, regulations, or the Code of Ethics in fiscal 2017 that could have had a material
impact on the Group’s business or local communities.

Internal control system and risk management
Risk management system
To more effectively strengthen the internal control and risk management systems of the entire Group,
TEL has established a dedicated risk management and internal control function within the General
Affairs Department of the corporate headquarters. This function analyzes the risks faced by theGroup and identifies material risks. It then monitors the management of such risks while supportingand implementing risk management activities. The function also regularly reports the status of risk
management activities to the Audit & Supervisory Board Members and the Board of Directors. In fiscal
2017, the Group reassessed the material risks in its operating environment. For each risk determined tobe material, the status of risk management at the responsible divisions was reconfirmed. Going forward,
we will continue these initiatives to enhance the efficacy of our risk management framework.

Auditing by the internal audit department
The Global Audit Center of the corporate headquarters is the TEL Group’s internal audit department.
This Center is responsible for auditing business activities, compliance and systems at domestic andoverseas Group companies and business units (BUs) in accordance with each fiscal year’s auditingplan. The Center also annually evaluates the effectiveness of the Group’s internal control over financial
reporting based on the Financial Instruments and Exchange Act of Japan. At operating divisions where
issues have been identified through audits and assessments, the Center monitors progress and provides
necessary guidance for improvement.

TOKYO ELECTRON SUSTAINABILITY REPORT 201742

Establishing a sustainable management foundation

Information security management
To ensure appropriate management of information assets, TEL has an information management
framework centered on its Information Security Committee, which is composed of representatives fromdepartments within the Group.
Based on the policy of the Information Security Committee, rules of the protection and control ofconfidential information and personal information are regulated. Employees and executives understandthe regulations through an e-learning system.
Additionally, we have a reporting system for both actual and potential cases (incidents) of
information leakage. Reported cases are quickly settled and analyzed. In accordance with the analysis,
reoccurrence prevention measures are implemented throughout the Group.
In order to mitigate emerging cyber security threats, we examine and undertake rationalcountermeasures as necessary. We also have in place systems to detect targeted threats that utilize
social engineering as well as a supervisory framework to prevent damage.

Percentage of employees who received information security training

100%
Business Continuity Plans (BCPs)

The TEL Group began building business continuity plans in 2003. After the Great East Japan Earthquake,
we rebuilt these plans to be more effective and include provisions for restoring operations after crises,
focusing on major business sites. Specific initiatives include preparations for disasters such as stockpilingemergency supplies (including food and drinking water), reinforcing essential infrastructure, rebuilding
the safety confirmation system, creating manuals, and implementing drills and employee training.
Furthermore, to meet our responsibilities as an equipment manufacturer, we pursue ongoing efforts toimprove our BCPs, including taking steps to facilitate early recovery and alternate production.

FeatureResponse to the Kumamoto Earthquake

When the Kumamoto Earthquake struck in April 2016, the Group was able to respond with speed and precision based on the BCP it had prepared.
Our safety confirmation system was activated at the time of the foreshock at 9:26 p.m. on April 14, and Earthquake Emergency Response HQ wasestablished at our Akasaka Headquarters at 9:50 p.m. Furthermore, in coordination with Tokyo Electron Kyushu, which has business in the affected area,
we made efforts to provide support to the earthquake victims and facilitate early recovery of business activities. By May 10, we had held 17 meetings to
discuss measures for dealing with the disaster. In addition to working to restore our own affected buildings and facilities, we also provided support toour customers and suppliers in the affected areas. As a result of these activities, we were able to continue business without notable problems.
Currently, we are making further improvements to our BCPs by reviewing our response to the Kumamoto Earthquake and recognizing new problems,such as unanticipated damage to equipment.
Organization and roles ofEarthquake Emergency
Response HQ

Earthquake Emergency Response HQ
Personnel
General affairs

Check on damage to buildings, facilities and infrastructure

Communications

Provide information through press releases, deal with the media

Response to customers (sales)
HQ Director
Representative Director,
President & CEO

Response to customers (service)
Inventory, exports, logistics
Backup supplies, logistics

43

Check on the safety of employees, their families andemployees traveling on business

Check on damage to clients, adjust delivery dates
Check on customs, transport routes and status at internaland external warehouses
Purchase backup supplies/Collate and check outward andinward routes

Finance

Check on damage to banks and on remittance situation

Suppliers

Check on situation at Tokyo Electron Kyushu’s key suppliers

Information systems

Check on phone/network condition

TOKYO ELECTRON SUSTAINABILITY REPORT 2017

Local Earthquake
Emergency Response HQTokyo Electron Kyushu
Koshi Factory

Ozu
Branch OfficeSafety management
Safety management framework
To ensure the safety of its employees, customers, and all others involved in its business operations, TEL
places a strong focus on preventing work-related accidents.
At each factory and office, monthly safety and health committee meetings are held to discuss safety
monitoring and to manage any workplace safety or employee health issues. In addition, representatives
from appropriate departments monitor safety performance at least once per month at eachmanufacturing site as part of an overall systematic effort to solve problems.
We use a management system based on OHSMS1 to identify and analyze potential workplace
hazards. The knowledge obtained from this system is shared throughout the company. Before starting
work, all employees discuss the risks involved and the required actions to prevent mistakes. The groupleader oversees the work at all times to eliminate any unsafe conditions or behavior that could lead to
accidents. In addition, whenever employees become aware of a lack of preparation or an unexpected
event during a task, they are encouraged to stop work and take any necessary corrective action. Safety
managers also regularly give advice on how to manage hazards, further raising worker safety awareness.

1 Occupational Health and Safety
Management System (OHSMS):
A management system to reduce
the potential risk of work-related
accidents and improve the overalllevel of safety and occupational
health. Based on the policy set bysenior management, a series ofPlan, Do, Check, Act processes forsafety and occupational healthmanagement are drawn up andimplemented on the employees’
own initiative.

Safety education
TEL promotes the creation of safe workplaces by implementing two education programs globally. Our
program on basic safety targets all employees and is provided as introductory training for new hires aswell as refresher training every third year of employment. In total, more than 40,000 employees havecompleted this program. Our other program, advanced safety, targets employees working in clean
rooms and on production lines, and must be completed every year. To eliminate accidents, we also
provide risk assessment training and 13 additional web-based training courses2 at offices and factories
in Japan and overseas. Risk assessment training has been statistically shown to help eliminate accidents.
Finally, we also provide safety information to suppliers as part of our support for initiatives to prevent
accidents.

2 13 web-based training courses:
preventing equipment confusion;
preventing falls from openings; stop
work authority (SWA); preventing
being caught in a drive unit;
preventing work-related back pain;
pointing and calling; preventing
exposure to liquid chemicals; worksafety rules; detailed work safety
instructions; rules for accident
reporting; assessing risks; measuresagainst ergonomic incidents; andcriteria for SWA

Initiatives for safety
TEL is committed to improving buildings and facilities to increase workplace safety. In 2016, weupgraded emergency exits at four key factories in Japan. The aim of the upgrades was to make plants
even safer by making evacuations easier. This included designing aisles and passageways so that people
can always tell where exits are and building doors so that they can be easily opened even by persons
with limited manual dexterity.
We maintain a high priority on creating safe workplaces, including programs such as promoting safety
management and safety education. Accident-related indices have been maintained at or below target,with a total case incident rate3 of 0.28 in fiscal 2017.

3 Total case incident rate (TCIR): thenumber of workplace accidents per
200,000 work hours

TCIR

0.28

TOKYO ELECTRON SUSTAINABILITY REPORT 201744

Establishing a sustainable management foundation

Environmental management
Environmental management system
TEL has operated environmental management systems based on ISO 14001 since 1997, especially at
its manufacturing subsidiaries. In 2016, we acquired multi-site ISO 14001 certification for our factories
and offices in Japan that had previously acquired certification separately. Also, along with adheringto the 2015 revisions, we identified overall internal and external issues and stakeholder needs andexpectations in relation to the environment. We set the following as our risks and opportunities
to address: (1) environmental management by reducing the environmental impact of our businessactivities, (2) compliance with applicable laws, and (3) enhancing product competitiveness withthe environmental contribution of products. During fiscal 2017, we established approximately 100
environmental goals across the entire Group and carried out these improvement activities. We plan toexpand this setup to each of our sites in Asia.

Initiatives to prevent global warming and save energy
Each TEL factory and office has an established goal of reducing energy consumption by at least 1%
year-over-year. Initiatives to achieve this goal include energy-saving clean room operation, appropriate
temperature settings for office cooling and heating, and the introduction of highly energy-efficientequipment. Tokyo Electron Miyagi, for instance, achieved more energy-efficient operation by installinga turbo refrigerator, resulting in a reduction of energy consumption. It set an environmental goal of
reducing the power consumption of its turbo refrigerator by an average of 20% in the first half of fiscal
2017, by an average of 30% in the second half, and by an annual average of 25% (year-over-year). Tokyo
Electron Miyagi achieved its goal with an average 22.6% reduction in the first half, an average 34.8%
reduction in the second half, and a 26.3% reduction across the full year.
In addition, LED lighting has been installed at our factories and offices in Japan, and photovoltaic
power generation systems have been installed at some of these sites, generating 4,436 MWh ofrenewable energy in fiscal 2017. Tokyo Electron U.S. Holdings in the United States has also been actively
engaged in activities including the ongoing purchase of green power, 3,334 MWh in fiscal 2017.
As a result of these initiatives, power consumption was 253 GWh in fiscal 2017, down 0.4% year-overyear; and CO2 emissions from energy consumption* were 141 kilotons, down 4.3% year-over-year. Goals
were also achieved at seven of our 11 worldwide factories and offices that had reduction goals.

Initiatives to reduce water consumption
TEL has established a goal of keeping water consumption at the same level or below that of thebaseline year (fiscal 2012 for factories and offices in Japan and a fiscal year of their choosing for eachoverseas operation). In fiscal 2017, we achieved 10 of the 14 goals at our sites worldwide. Continued
efforts to achieve these goals include installing water-saving devices, watering lawns with rainwater,
and implementing intermittent operation of cafeteria faucets. Overall, we reduced water consumption
by 1.9% year-over-year to 1,055,000 m3 in fiscal 2017, and we discharged an estimated 874,000 m3 ofwastewater.

Water consumption

1 1% decrease(compared to baseline year)

45

TOKYO ELECTRON SUSTAINABILITY REPORT 2017

* In calculating CO2 emissions, theemission factor for TEL’s electricity
consumption in Japan in fiscal
2017 was substituted by adjusted
emission factors for the electrical
power providers concerned. The
emission factor for TEL’s overseas
electricity consumption was
substituted by estimated factors
calculated by the Federation ofElectric Power Companies of Japan
based on values published by theInternational Energy Agency (IEA).

Initiatives to reduce waste
TEL is contributing to waste reduction and recycling whenever possible by sorting waste and switching
to waste-free production processes. When not possible, we appropriately dispose of non-recyclable
waste. We also put a great deal of effort into waste sorting activities and participate in the electronic
manifest system1 to ensure proper waste management.
One example of our initiatives is the Koshi Factory in Kumamoto, where activities were undertaken to
reduce the amount of inventory being disposed of as waste. To better utilize inventory, active efforts
were made to rework components with low demand and to control inventory changeover with designchanges. The factory successfully achieved reductions in terms of both waste and cost, reusing about
40% of inventory (based on cost) that would have been disposed of the previous year.
In fiscal 2017, we generated 112 tons of incinerated and landfill waste in Japan. As a result of ourwaste-reduction initiatives, the recycling rate2 at sites in Japan in fiscal 2017 was 99.0%, achieving ourgoal of maintaining a recycling rate of 97% or higher for the 11th consecutive year since fiscal 2007. The
recycling rate for our overseas factories and offices was 91.5%.

Management of chemical substances

URL tel-csr.disclosure.site/en/themes/181

As transport regulations become more stringent and the demand for a lower impact on theenvironment rises, TEL has been promoting modal shifts4 and other activities designed to reduce theenvironmental burden of its logistics.

Biodiversity

2 Recycling rate: (Recycled amount/
Amount of waste generated) x 100

URL tel-csr.disclosure.site/en/themes/182

TEL uses chemical substances in our product development and manufacturing phases. The use andrelease of chemical substances that are under the purview of the Japanese PRTR3 law are consistently
monitored and managed.

Logistics initiatives

1 Electronic manifest system: A
system for electronically tracking
the flow of industrial waste insteadof using paper-based manifests(i.e. paper forms for tracking
industrial waste). The system uses
a communications network of dataprocessing centers, businesses
that generate waste, and waste
collection/disposal companies.

3 Pollutant Release and Transfer
Register (PRTR): A framework for
tracking, tabulating, and disclosing
quantitative data on chemical
substances that may be hazardous
to human health and the ecosystem,
including the amounts used anddischarged into the environment
and the amounts transferred (aspart of waste) off the original
business’s premises
4 Modal shift: A change in the modeof transport; specifically, switchingfrom conventional freight transport
by truck or aircraft to a meansthat has a lower impact on theenvironment, such as rail or ocean

URL tel-csr.disclosure.site/en/themes/182

TEL’s activities impact biodiversity while also benefiting from it. In recognition of this, we promote
activities for the conservation of biodiversity.

Environmental communication

URL tel-csr.disclosure.site/en/themes/182

TEL maintains close communication with its stakeholders to promote its initiatives for the environment.

TOKYO ELECTRON SUSTAINABILITY REPORT 201746

Establishing a sustainable management foundation

Supply chain management
Procurement Policy
In order to build sustained, trust-based relationships with suppliers and to maintain mutual growth,
TEL has released a Procurement Policy and conducts procurement activities based on this. In fiscal 2017,
we revised our Procurement Policy and our Procurement Policy–Supplement to include our review of
the content of conflict minerals initiatives and reflect the EICC Code of Conduct. We informed suppliersof these revisions, including the request to comply with the EICC Code of Conduct. We joined EICC in
June 2015.

CSR procurement
TEL is committed to building and maintaining a robust and sustainable supply chain. In addition to
sharing our Procurement Policy, Procurement Policy–Supplement, EICC Code of Conduct, and Guideline
for Green Procurement, we also promote CSR activities with suppliers. Our promotion includes respect
for fundamental human rights, strict compliance with labor laws and regulations, and reduction ofenvironmental impact.
Since fiscal 2014, we have also conducted a CSR Survey with the aim of keeping track of suppliers’
engagement in CSR activities. During fiscal 2017, we conducted a supply chain CSR assessment basedon the EICC Code of Conduct with key suppliers (accounting for more than 80% of our procurement
spend). Improvements in overall rating level were observed at 17% of suppliers and improvementsin overall raw score were seen at 59%. We provided responses, results, and overall assessments asfeedback to suppliers and as support for their improvement activities.
The results of the survey showed that no suppliers were engaged in any of the practices given
particular emphasis in the EICC Code of Conduct, namely child labor, forced labor, bonded labor,
inhumane treatment, false reports, falsification of records, or bribery. Also, no suppliers had a sufficientnumber of employees* to be considered high risk in terms of compliance.

Supply chain CSR process

STEP 1

STEP 2

STEP 3

Procurement Policy andProcurement Policy–Supplement:
Appeal for CSR activities throughrequests to suppliers

CSR evaluation based on a
supply chain CSR assessment

Provision of feedback to
suppliers based on results ofassessment, and request for
improvements

Percentage of suppliers rating highly in supply chain CSR assessment
(%)

80
60
40
20

2014

47

TOKYO ELECTRON SUSTAINABILITY REPORT 2017

2015

2016

2017

(FY)

* 500 employees or moreConflict minerals
TEL regards taking action against conflict minerals1 an important part of corporate social responsibility.
Our resolute goal is to eliminate the use of any parts or components with raw materials that include
conflict minerals obtained through illegal exploitation, including sources with human rights violations orpoor working conditions.
In fiscal 2017, we conducted our third annual survey on countries of origin and smelters of potential
conflict minerals, using the Conflict Minerals Reporting Template (CMRT) developed by CFSI.2 As aresult, we identified 237 CFSP3 compliant smelters, providing us confidence that 3TG sourced fromthese smelters were conflict-free. None of the materials procured were found to contain 3TG conflictminerals. This survey will continue every year, with the cooperation of suppliers, to further improve thequality and accuracy of the survey.

1 Conflict minerals: 3TG (tantalum,tin, tungsten and gold)
2 Conflict-Free Sourcing Initiative(CFSI): Founded by membersof the EICC and GeSI (Global
e-Sustainability Initiative), the CFSI
inspects 3TG smelters to certify they
do not have conflict minerals
3 Conflict-Free Smelter Program(CFSP): The CFSP is promoted andled by the CFSI

Procurement BCP
As part of its business continuity plan (BCP), TEL collaborates with suppliers for disaster preparation.
We maintain a database of suppliers’ production sites so that if a crisis arises, we can promptly
identify impacted suppliers and quickly collaborate in recovery efforts. Following an earthquake orother disaster, we also survey suppliers registered in the affected location to assess impact to theiroperations. During fiscal 2017, about 17,000 supplier sites were registered, and post-disaster surveys
were conducted six times. Following the Kumamoto Earthquake, the survey of impacted suppliers
was carried out the same day. Consequently, our collaboration for recovery was quicker and smootherthan at the time of the Great East Japan Earthquake. Also during fiscal 2017, we requested suppliers toevaluate their fire-prevention systems, and we shared this information internally along with activities torecover from fire damage.
According to a BCP survey of key suppliers (accounting for more than 80% of our procurement spend)
improvements in overall rating level were observed at more than 32% of suppliers and improvementsin the overall raw score were seen at more than 56%. Responses, results, and overall assessments were
given as feedback to suppliers to promote further improvement.

TOKYO ELECTRON SUSTAINABILITY REPORT 201748

Performance summary (Social)

Composition of employees
FY2014

Number of regular employees byregionFY2015FY2016FY2017

Japan

6,985

6,853

6,737

6,967

Rest of Asia

1,443

1,386

1,543

1,850

955

670

440

448

U.S.

1,652

1,622

1,586

1,655

Total

11,035

10,531

10,306

10,920Europe and Middle East

FY2014
Regular employees
Number of employees
by employment type Non-regular employees(Japan)Total

FY2015FY2016FY2017

Total

Men

Women

Total

Men

Women

Total

Men

Women

Total

Men

Women

6,985

6,100

885

6,853

5,982

871

6,737

5,874

863

6,967

6,079

888

286

162

124

313

183

130

323

201

122

321

209

112

7,271

6,262

1,009

7,166

6,165

1,001

7,060

6,075

985

7,288

6,288

1,000

Scope: Group companies in Japan (excluding Tokyo Electron Device Limited)

Recruitment/employment (Japan)
FY2014

Number of new
graduates hired

FY2015FY2016FY2017

Total

Men

Women

Total

Men

Women

Total

Men

Women

Total

Men

Women

Under 30 yrs old

154

132

22

73

65

8

24

20

4

72

70

2

30–49 yrs old

3

3

0

0

0

0

1

1

0

0

0

0

Over 50 yrs old

0

0

0

0

0

0

0

0

0

0

0

0

135

22
(14.0)

7365

8(11.0)

25

21

4(16.0)

72

70

2
(2.8)

Total (percentage ofwomen)*

157

Under 30 yrs old

5

0

5

11

3

8

17

13

4

102

85

17

30–49 yrs old

27

16

11

45

29

16

47

31

16

170

155

15

Over 50 yrs old

2

2

0

6

4

2

2

2

0

7

6

1

Total

34

18

16

62

36

26

66

46

20

279

246

33

Retirees who used reemployment system

68

68

0

74

74

0

101

98

3

125

123

2

Users of second career support system

82

68

14

69

59

10

49

43

6

34

30

4

Percentage of regular employees who received
regular performance and career evaluations

100

100

100

100

100

100

100

100

100

100

100

100

Number of careertrack recruits

Percentage of
employees withdisabilities
Number (percentage)of women among
managers

TEL (non-consolidated)

1.80

2.00

1.96

2.13

Group

1.90

1.94

1.98

1.98

Group

30
(1.2)

32
(1.3)

39
(1.5)

42
(1.6)

Scope: Group companies in Japan (excluding Tokyo Electron Device Limited)* Change from last year’s report: Updated figures due to change in calculation method

Employee retention
FY2014
Retention after three years of joining TEL(average in recent five years)*
Average service years
Employee turnover (percentage)

FY2015FY2016FY2017

Total

Men

Women

Total

Men

Women

Total

Men

Women

Total

Men

Women

95.0

95.8

91.3

94.2

95.0

90.3

93.6

94.1

90.2

92.9

94.1

85.2

15 yrs.
7 mos.

15 yrs.
9 mos.

14 yrs.
3 mos.

16 yrs.
4 mos.

16 yrs.
6 mos.

15 yrs.
3 mos.

17 yrs.
0 mos.

17 yrs.
2 mos.

16 yrs.
0 mos.

17 yrs.
1 mos.

17 yrs.
4 mos.

15 yrs.
5 mos.

122
(1.6)

89

33

198
(2.7)

164

34

131
(1.8)

94

37

102
(1.4)

82

20

Scope: Group companies in Japan (excluding Tokyo Electron Device Limited)* Change from last year’s report: Updated figures due to change in calculation method

49

TOKYO ELECTRON SUSTAINABILITY REPORT 2017

Work-life balance (Japan)
FY2014Total
Use of annual paid leave
Number of those who took refreshment leave

Men

FY2015
Women

Total

59.6
772

Number of those who took paternity leave

Men

FY2016
Women

Total

61.8

663

109

1,285

211

Men

FY2017
Women

Total

62.6

1,091

194

1,045

192

Men

Women

64.1

926

119

586

172

499

87

179

Number (percentage) of those who took childcare
leave

70

3

67
(94.6)

52

3

49(94.5)

422

40(93.3)

442

42(95.7)

Number (percentage) of those who returned towork after childcare leave

53(93.0)

350

46(88.5)

2

44

46(85.2)

1

45

44(93.6)

2

42

Employee retention after childcare leave

97.4

94.3

91.3

Number of those who used the shorter working
hour system

159

8

151

183

11

172

Number of those who took childcare leave to care
for a sick/injured child

435

240

195

460

246

Number of those who took childcare support leave

92

17

75

96

24

95.7

188

13

175

170

23

147

214

453

245

208

464

263

201

72

103

15

88

106

16

90

Number of those who took extended nursing care
leave

2

0

2

2

0

2

0

0

0

2

1

1

Number of those who took short nursing care leave

22

13

9

20

11

9

31

10

21

50

31

19

Number of those who used the shorter working
hour system for nursing care

1

1

0

1

1

0

0

0

0

0

0

0

Scope: Group companies in Japan (excluding Tokyo Electron Device Limited)

SafetyFY2014FY2015FY2016FY2017

Percentage of employees who received training on basic safety

100

100

100

Percentage of employees who received training on advanced safety

100

100

100

100

Lost time incident rate (LTIR)*

0.82

0.53

0.42

0.46

0.37

0.24

0.21

0.28

Number of workplace injuries per 200,000 work hours (TCIR)100* Change from last year’s report: Updated figures due to change in calculation method

Governance
FY2014FY2015FY2016FY2017

Total number of critical incidents notified to Board of Directors

—

—

—

1

Total number of incidents subject to legal action on the basis of anti-competitive conduct, antitrust activity, or monopolistic practices where the governance body’s involvement was revealed

0

0

0

0

Number of directors who received training on anti-corruption*

—

—

—

12

Total number (percentage) of directors who provided instructions on the body’s policies andprocedures in relation to anti-corruption*

—

—

—

11
(100)

Total number (percentage) of governance body members who received training on anticorruption*

—

—

—

9
(81.8)* Scope: Japan

Compliance
FY2014FY2015FY2016FY2017

Percentage of employees who have received web-based training on business ethics andcompliance

100

99.7

98.4

98.0*

Percentage of employees who have consented to the information security agreement

100

100

99.9

99.9

0

0

0

0

Number of substantiated complaints regarding customer privacy infringement and loss ofcustomer data

* Fiscal 2017 figures are for Japan only. Training is continuing overseas until the end of June 2017.

TOKYO ELECTRON SUSTAINABILITY REPORT 201750

Performance summary (Social)

Products/Innovation
FY2014FY2015FY2016FY2017

Number of breaches of regulations and self-imposed restrictions on health and safety that
occurred during product/service lifecycle

0

0

0

0

Amount of significant fines for breaches of laws and regulations on provision/use of
products and services

0

0

0

0

Japan

5,227

5,288

5,172

4,984

U.S.

4,299

4,326

4,361

4,224

Europe

439

354

241

199

Korea

2,875

2,847

2,784

2,672

Taiwan

1,889

1,983

2,131

2,387

China

1,647

1,623

1,611

1,557

Total

16,376

16,421

16,30016,023

Number of active
issued patents

CY2012Global patent application rate (%)
Patent application successrate (%)

CY2013

CY2014

CY2015*

70.3

69.5

68.0

70.0

Japan

78.0

74.0

78.0

66.5

U.S.

66.8

62.8

71.2

72.3

* Calendar year when patents were filed/granted

Customers
FY2014
Percentage of customers who said they were satisfied in the customer satisfaction survey

FY201579.5

FY201679.5

FY201787.1

86.8

Procurement
FY2014FY2015FY2016—FY2017

Percentage of new important suppliers screened using social criteria—

Rate of improvement after supply chain CSR assessment (including green procurement
survey from fiscal 2016)

—

25.3

33.8

16.9

Rate of improvement after supply chain BCP assessment

—

41.2

26.5

32.3

Number of identified CFSP-certified smelters

—

117

204

237

100

100

Social contribution
FY2014
Spending on social contribution (million yen)

Cash donations
breakdown

51

FY2015FY2016FY2017

259

184

277

242

Charity donations (providing donations/relief supplies to charity
organizations)

5

2

14

17

Community investment (charitable expenses for long-term cause forcommunity)

38

47

52

43

Commercial initiatives (charitable expenses with anticipated effects
on business growth)

57

51

34

40

TOKYO ELECTRON SUSTAINABILITY REPORT 2017

Performance summary (Environment)

Energy consumption/generation
Scope
Energy consumption metric (energy consumption/
sales) (kL/billion yen)

FY2014

Group

Energy consumption (crude oil equivalent) (kL)Electricity consumption (MWh)Gas consumption (crude oil equivalent) (kL)

Fuel consumption (crude oil equivalent) (kL)

FY2015
1.30

1.02

0.84

58,92754,97352,002

52,676

20,432

18,44815,497

14,781

Total

79,35973,421

67,49967,457

Japan

222,976

208,753

198,404

200,547

Overseas

72,23965,61555,79752,753

Total

295,215274,368

254,201

253,300

Japan

2,027

1,929

1,602

1,666

Overseas

1,850

1,572

1,146

1,211

Total

3,877

3,501

2,748

2,877

Japan

1,156

870

706

796

4

1

0

1

1,160

871

706

797

Japan

0

0

0

0

Overseas

2,618

2,405

3,833

3,334

Total

2,618

2,405

3,833

3,334

Japan

4,698

4,536

4,486

4,436

26

23

0

0

Total

4,724

4,559

4,486

4,436

Japan

1,439

1,337

1,331

1,346

0

0

0

0

1,439

1,337

1,331

1,346

Overseas

Power sales (MWh)*

1.20

Overseas

Total

PV power generation (MWh)FY2017Japan

Overseas

Green power purchase (MWh)FY2016

Overseas
Total* Heating, cooling and steam not soldElectricity consumption(Million kWh)

223.0

221.6

208.8

72.2

40.5
2013

198.4

65.6

2014

200.5

55.8

2015

52.8

2016

2017

Japan

Overseas(FY)

CO2 emissions fromimpact
energy consumption
Environmentalof logistics
(kt)

126

121

117

Scope

115

110

CO2 emissions from logistics (kt)
Proportion of marine
36 transport
35in international
33
logistics
23(%)

2013

2014

2015

FY2014

2017

3

58

51

6

7

Overseas

51

68

59

90

Total

54

74

65

97

42.2

31.0

36.1

31.9

Japan

Overseas

(FY)

90

68

(thousand m3)

2013

2014

2015

1,078

1,058

1,043

300
466

297

612
471

327
416

2016

896
226

503

368

2017

(Million kWh)

221.6

(FY)

223.0

72.2

40.5

Proportion of marine transport
in international logistics (%)

2013

208.8

2014

65.6
2015

198.4

200.5

55.8
2016

52.8
2017

Japan
(FY)

861
177
385

194
180
104
312
302
299 と
300
290
製品におけるエネルギー消費量率（平均）
省エネルギーモデル売上比率
2013
2014
2015
2016
2017
（単位 : %）

Electricity consumption

Logistics in Japan
Overseas logistics

59

Water consumption

FY20175

CO2 emissions from logistics and the proportion of marine transport
(kt)
42.2
36.1
31.9
31.0
25.9
97 7
74
65
5
60
54
6
2

FY2016

3

Shipped from
31
Japan

2016

FY2015

Japan

(FY)

Industrial water (Japan)

Tap water (Japan)

Groundwater (Japan)

Overseas use

CO2 emissions from energy consumption

TOKYO ELECTRON SUSTAINABILITY REPORT 2017

(kt)

117

121

126

52

Ov

Performance summary (Environment)

Greenhouse gas consumption/emissions
Scope

FY2014Japan
CO2 emissions from energy consumption (kt)Metric for CO2 emissions from energy consumption(CO2 emissions/sales) (t/billion yen)

Scope 11 CO

emissions (kt)2Electricity consumption(Million kWh)

223.0

221.6

Scope 22 CO

2

208.8

198.4

emissions (kt)

Scope 33 CO2 emissions
72.2 (kt)

65.6

40.5

200.5

55.8

FY2015
121

2014

2015

36

35

33

31

160

148

141

Group

2.57

2.61

2.22

1.77

Japan

8

7

6

6

Overseas

4

3

2

2

Total

11

10

8

8

Japan

113

119

109

104

Overseas

33

31

30

29

Total

146

151

140

133

Group

3,651

3,566

3,491

4,028

21

22

33

28

3

2

1

3

2017

Japan

(FY)
HFCs

Electricity consumption(Million kWh)

7

6

8

8

SF6

11

14

17

9

Other

0.01

0.01

6

8

1 Scope 1: Direct GHG emissions from use of fuel and gas owned or controlled by TEL
2 Scope 2: Indirect GHG emissions from use of electricity, steam and heat purchased by TEL

(kt)

121

72.2

40.5

23

55.8

2015
35

2014

3 Scope 3: Emissions from corporate value chains (excluding scope 1 and 2 emissions), such as product transportation,
employee business travel, and major outsourced production processes

110

65.6

2014
36

2013

2013

115

52.8

2016
33

2015

Japan

2017
31

2016

Overseas

PFCs

223.0
221.6
208.8 consumption
CO2 emissions from energy
198.4
200.5
117

110

157

Non-energy-derived greenhouse gas emissions (kt)

126

115

Total

52.8

2016

126

FY2017

Overseas

Japan

2013

FY2016

Overseas

(FY)

Japan

2017

Overseas(FY)

CO2 emissions from energy consumption
(kt)

126

121

117

115

Resource consumption

110
Scope

Water consumption(thousand m3)

36

1,078 23 1,058
300

35
1,043

297

33
896

327

2014
2015226
3
Water2013
consumption
612(thousand m )

466

471

416

290

300

104

312

2013

2016177

368

Overseas

299

2017

Use of copier paper (t)FY2015FY2016
1,043

896

861

297

327

226

177

471

416

368

385

290

300

302

299

612
Tap water (Japan)

503

180

194

Total

Groundwater (Japan)

1,546

1,076

1,055

162

128

157

1,670
Overseas use

(FY)

Japan

116

Water consumption(thousand m3)

1,078

1,058 of PRTR
1,043 Class I designated chemical substances handled in Japan
Volume
896
861
(t)
297

300

47180

466
312

104

290

2013

612
2
4
6

68
2014

2013

53

327

94

416
300

226
2503
4 368
6

177

385

194

180

30248 1
299
35
82
2
1
7
2015
2016
2017
4
9
38
21

2014

2015

TOKYO ELECTRON SUSTAINABILITY REPORT 2017

2016

FY2017

1,058

(FY)

Industrial
water

194 Overseas Industrial water (Japan)

180
2016

Groundwater
Tap water Japan

2017

385

302
2015

31
861

503

2014

FY2014

Japan

64
(FY)

1 Industrial water (Japan)
525 Groundwater (Japan)
Ferric chloride

33
2017

Methylnaphthalene(FY)

Tap water (Japan)
Overseas use
Hydrogen fluoride andits water-soluble salts
Other

44.7

38
2011

2012

40.2

40.2

2013

2014

36

35

33

31

2014

2015

2016

2017

23
2013

2015

（年度）

Japan

Ov

(FY)

Electricity consumption

エネルギー消費量率（平均）（2007 年度を 100 とする。
ウェーハ 1 枚当たり）(Million kWh)

省エネルギーモデル売上比率（2009 年度よりデータを開示）

223.0

221.6

208.8
Amountof waste198.4generated
200.5
Scope

2010年度と同じ電力係数を用いた場合の72.2of waste
65.6
Amountgenerated55.8(t)
52.8
40.5 国内CO2排出量推移
Amount of specially controlled industrial waste
(FY)
2014
2015
2016
2017
generated(t)81,067
82,137
81,592

76,791CO2 emissions2011
from energy
consumption
2012
2013
2014
126
121
Wastewater (thousand115
m3)

117

Overseas

1,185

1,206

663

925

9,965

10,064(thousand m3)

8,384

12,318

2,627

2,842
1,078

2,125

3,683

Overseas

8,608
813

Water consumption

1,064

Total

9,421

4669,828 471

Japan

172

94

Overseas372

104
312 142
290

Total

544

—

2013
—

Overseas

—

Total

—

110

236

97.3

2013

2014

98.0

98.9

98.4

2015

2016

2017

99.0

172

612

7,599 896

327

368

122

80
302

300

202

2015

2014

2015

2016

847
12,128

385

180

299

2016

194

112

Industrial wate

78

Groundwater

190

2017

(FY)

709
165

—

904

874

Volume of PRTR Class I designated chemical substances
(t)

Japan

Overseas

80

94
2
4
6

64
48

82

68

112

2
4
6

Incinerated and landfill waste (t)2013

11,281

177

503
8,182

416

2014

861

226
583

154

(FY)

122

94

1,043

—

Target: Maintain recycling rate of 97% or more

215

11,393750

Recycling rate/generation of incinerated and landfill waste in Japan
36
35
33
31

23

1,058

3008,764 297

Japan
（年度）

2015

(kt)

FY2017
7,721

Overseas

Amount of incinerated and landfill waste (t)FY2016
8,858

72,641 Japan

Recycled amount (t)FY2015
8,780

Total
Japan
Japan

（単位 : t）

2013

FY2014

Japan

2017

Recycling rate (%): Recycled amount/
Amount of waste generated × 100

(FY)

2013

2014

1
2
7
38

2015

35

1
4
9
21

2016

1
5
25

Fer

33
2017

Me
(FY)

Water consumption(thousand m3)

1,078

300

1,043

297

612

Scope
861

896

327

226

177

503
471Volume of416
385
PRTR Class368
I designated

466
312

Chemical substances consumption/emissions
1,058

104

chemical substances handled180
(t)

290

2013

302

300

2014

2015

299

2016

FY2014

Japan

2017

FY2017
35

64

82

38

21

33

6
Tap water (Japan)
4Overseas use
2

7

9

25

2

4

5

1

1

1

90

46

31

59

Amount transported as waste

PRTR Law material balance (t)FY201648

Ferric chloride*
Hydrogen fluoride and its watersoluble
194 salts Industrial water (Japan)
Methylnaphthalene
Groundwater (Japan)
Other (FY)FY2015
94

4

2

4

5

NOx emissions (t)JapanConsumption

9.7

12

7.5

7.9

SOx emissions (t)

Japan

2.8

2.7

2.2

2.5

* Added in accordance with the PRTR Law

Volume of PRTR Class I designated chemical substances handled in Japan
(t)

80

94
2
4
6
68

2013

2
4
6

64
48

82

2014

1
2
7
38

2015

35

1
4
9
21

2016

1
5
25
Ferric chloride

33
2017

Methylnaphthalene

Hydrogen fluoride andits water-soluble salts
Other

(FY)

Other
Scope

FY2014FY2015FY2016FY2017

Japan

7

4

4

5

Overseas

3

4

3

3

Total

10

8

7

8

Number of ecosystem tours

Japan

16

13

15

18

Number of ecosystem tour participants

Japan

Number of ISO 14001-certified companies

42

69

281

396

Number of breaches of environmental laws andregulations
Amount of fines on legal breaches

Group

0

0

0

0

Group

0

0

0

0

Total product shipment (t)Japan

16,331

13,596

17,342

20,445

TOKYO ELECTRON SUSTAINABILITY REPORT 201754

Cover photo: Cherry blossom (Japan)
This photograph shows the flowers of the country and region we do business in.

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Minato-ku, Tokyo 107-6325, Japan
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