CSR-oriented operations
Tokyo Electron’s Corporate Philosophy

Participation in global initiatives

We strive to contribute to the developmentof a dream-inspiring society through ourleading-edge technologies and reliable
service and support.

TEL is a corporate member of the United Nations Global Compact and the Responsible Business Alliance (RBA1), both global
CSR initiatives, whereby the company strives to build a sustainable management foundation from a global perspective.
The United Nations Global Compact● An international initiative for sound globalization and sustainable societies● TEL signed in 2013

CSR policy

1
RBA: Rebranded fromthe Electronic Industry
Citizenship Coalition(EICC®) in October 2017

RBA
● A CSR promotion group focused on the electronicsindustry

2
TCFD: Task Forceon Climate-related
Financial Disclosures● TEL signed in 2015

The CSR operations of Tokyo Electron (TEL) are initiatives that realize TEL’s Corporate Philosophy. We pursue sustainable
operations from the viewpoints of corporate governance, legal and regulatory compliance, and business ethics while
creating new value through our products and services. Based on these efforts, TEL implements CSR activities to help
address social issues. We will continue to pursue CSR activities to build stakeholder trust, improve corporate value and, bydoing so, promote the growth of a sustainable and dream-inspiring society.
The Ten Principles

Advancementof dream-inspiring society

Sustainable operations
Material issues

Through business activities

Reinvest

Contribution to
the solution ofsocial problems

Distribute toshareholders andemployees

Improvementof corporatevalue

Creation of new value

HumanRights

LabourPay taxes
Environment

CSR-oriented operations

Distribution of profit
AntiCorruption

CSR promotion framework
TEL implements sustainability management, which is integrated into thebusiness strategy from a medium- to long-term perspective of corporate valueenhancement. Three groups have been established to promote CSR activities.
The CSR Management Council, the highest decision-making body regarding CSR,
conducts discussions regarding the policy for the entire group, and important
projects. Based on this, the CSR Global Committee discusses, that progress
management regarding activities for achieving CSR targets along with thepromotion of global projects, and shares best practices. At the CSR Monthly
Meeting, information on activities is shared with representatives from eachdivision, and collaborative systems are built to tackle cross-division themes.
We are also working to strengthen our CSR structure by appointing officers
in each division across the company to be in charge of understanding the CSR
policy and goals and promoting CSR.

3DJSI (Dow Jones
Sustainability Index):
An ESG (environmental,social and governance)
investment index by
S&P Dow Jones IndicesLLC. The Asia Pacificcovers companies inthat region.

Framework (five sections)
Principle 1:

Businesses should support and respect the protection ofinternationally proclaimed human rights; andPrinciple 2: make sure that they are not complicit in human rights abuses.
Principle 3: Businesses should uphold the freedom of association and theeffective recognition of the right to collective bargaining;
Principle 4: the elimination of all forms of forced and compulsory labour;
Principle 5: the effective abolition of child labour; andPrinciple 6: the elimination of discrimination in respect of employment
and occupation
Principle 7: Businesses should support a precautionary approach toenvironmental challenges;
Principle 8: undertake initiatives to promote greater environmental
responsibility; andPrinciple 9: encourage the development and diffusion of environmentallyfriendly technologies.
Principle 10: Businesses should work against corruption in all its forms,
including extortion and bribery.

LABOR

MANAGEMENTSYSTEMSHEALTHand SAFETYETHICS

5FTSE Blossom Japan
Index: An index
that reflects theperformance ofJapanese companies
that have demonstrated
strong ESG practices.
6MSCI World ESG
Leaders Index:
Companies that havehigh ESG performanceare selected fromthe MSCI Global
Sustainability Index,an ESG investment
index developed by
Morgan Stanly CapitalInternational (MSCI).

In addition, TEL has expressed its approval of the recommendations offered by the Task
Force on Climate-related Financial Disclosures (TCFD2) and is pursuing initiatives basedon the framework of governance, strategy, risk management, indicators and targets
relating to the impact and opportunity that climate change presents to its business.

Evaluation from third-party institutions
CSR Global Committee

TEL’s CSR activities have received high appraisal from evaluation organizations in various countries, and we have been
selected as a constituent stock under leading global ESG investment indices, including DJSI3 Asia Pacific 2019, FTSE4 GoodIndex4, FTSE Blossom Japan Index5, MSCI World ESG Leaders Index6, MSCI Japan ESG Select Leaders Index7, and MSCI Japan
Empowering Women Index (WIN8).

9Conference name

Participants

CSR Management Council







CSR Global Committee

CSR Monthly Meeting

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

Function

4FTSE4Good Index:
An index related
to environmental
performance andcorporate social
responsibility developedby FTSE Russell.

ENVIRONMENTAL

Decide company-wide CSR policy
Discuss important matters
Manage progress of activities for achieving CSR
goals
Implement global projects
Share best practices
Share information on CSR activities
Discuss cross-division CSR initiatives

In addition, once a year, we invite employees from around the world to submit
examples of CSR in the workplace, with outstanding initiatives being awarded
the CSR Promotion Award by the Representative Director, President & CEO.
Throughout the group, we are promoting CSR activities through our daily
business activities in order to aid in the development and to resolve issues inindustry and society, and to contribute to the achievement of SDGs.

9Meeting frequency
Twice annually

Twice annually

Monthly

7MSCI Japan ESG SelectLeaders Index: An index
featuring companies
with high ESG
performance selectedfrom its parent index(MSCI Japan IMI Top
700 Index: Top 700
securities based on free
float-adjusted marketcapitalization). TheIndex targets 50% of
the free float-adjusted
market capitalization
within each GICS sectorof the parent index.
8MSCI Japan Empowering
Women Index (WIN):An index developedby MSCI featuring
companies withexcellent gender
diversity selected fromits parent index (MSCI
Japan IMI Top 700
Index).

Initiatives for Sustainable Development Goals (SDGs)
The SDGs are a universal set of goals to achieve by 2030, which wereunanimously adopted by the United Nations Sustainable Development Summitin 2015. TEL conducts activities on a group-wide level, and for each CSR fiscal
year and medium-term goal, and material issue, it has clarified the SDGs it isworking toward through business.
Tokyo Electron supports the SDGs

9
Please check the link forthe logo’s disclaimer.
https://www.tel.com/csr/review/

CSR Promotion Award Ceremony

7

TOKYO ELECTRON SUSTAINABILITY REPORT 2020

TOKYO ELECTRON SUSTAINABILITY REPORT 20208