Identifying Materiality (Important sustainability issues)
The Tokyo Electron Group identifies the materiality of its social responsibility by taking into account potential risks in its
business activities in light of changing international social and environmental needs, as well as through stakeholder
communications. The TEL Group also periodically examines the validity of the identified materiality and reports the progress ofactivities to stakeholders as part of its responsibilities.

Process of identifying materiality

Step1

Identify social issues surrounding our business
Based on guidelines like the Ten Principles of the United Nations Global Compact and EICC® 1—a code of conduct for theelectronics industry—and feedback from stakeholders, a review was carried out by the Chief CSR Promotion Director, the CSR
Promotion Executive Officer, and the seven key departments in charge of CSR promotion. Social issues affecting our businessenvironment were identified.
1EICC® (Electronic Industry Citizenship Coalition®) sets forth a code of conduct in relation to labor, safety, the environment, and ethics for supply chains in theelectronics industry.

Check the relevance of the issues to business based on the size of impact

Step2

Step3

Based on the relevance of the social issues identified in Step 1 with respect to the TEL Group’s business sustainability, issues that areor will be high impact were identified.

Revisit the validity of materiality
Based on the materiality identified in the previous fiscal year, the Materiality Review Meeting, attended also by external experts,
was held to discuss the validity of each outstanding issue and issues to be added, from the perspectives of business
continuity/growth and stakeholders.

Key outcomes at the Material Review Meeting• Customers in the electronics industry expect speedy innovation. We should consider
adding “promoting innovation” and “protecting and using intellectual property” tofurther enhance the strength of the TEL Group.
• Human resource development is indispensable to continuing innovative productdevelopment and is also a source of competitiveness. It is more important than everto improve employees’ skills and abilities, respect diversity, and offer vital workplaces
that make it possible for everyone to work hard and achieve their goals.
• In enhancing governance and compliance to meet the growing demands of society, it
is crucial to recognize issues and address them on a Group-wide basis. Stakeholder
communication will play an increasingly important role in ensuring transparency andaccountability of business operations.

Identified materiality

Materiality Review Meeting (March 25, 2015)

Materiality matrix

The TEL Group will promote and improve its CSR activities basedon the following.

12

Reported by/on

Solid financial footing
Governance/ethics and compliance
Stakeholder communication
Product quality
Innovation management
Supply chain management
EHS1 management
Business continuity/BCP2
Environmental contribution of products
Information security
Diversity
Workplaces with vitality
Protecting and using intellectual property
Product life cycle management
Promoting energy savings
Reducing water consumption
Conflict minerals
Reducing waste/recycling
Social contribution activities
Biodiversity conservation

Annual Report3

p.8, 12–15
pp.7–8

Stakeholder perspective

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20

Issuesp.9, 18–27, 31–32
p.10
p.9, 21, 27, 32
p.8, 9, 16–19, 22–27, 31–32
p.13
p.9, 22, 24–25, 31
p.8, 13
p.8, 16–17, 32
p.8, 16–17, 32
p.11

245161718158
10 91413761112

19

pp.8–9, 18–27, 31–32
p.9, 22–27, 31

20

p.9, 24, 26, 31
p.9, 21, 32
p.9, 24, 27, 31
p.8, 28–29, 32

Business continuity/growth perspective

p.9, 23

EHS: environment, health and safety
BCP: business continuity plan

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Identifying Materiality (Important sustainability issues)

Stakeholder Communication
Our belief in stakeholder communication
The TEL Group strives to maintain good relationships and build trust with stakeholders who have, or are likely to have, an impact on its
business. To help our stakeholders properly understand the value of the TEL Group, we ensure transparency and accountability of ouroperations by disclosing information in a fair, impartial and timely manner. Communication with stakeholders is imperative for us to understandtheir expectations for the future of the Group, and can help us minimize our social and environmental risks and identify areas needingimprovement. Such stakeholder communications shape our business with further opportunities, advantages and competitiveness.

Use of stakeholder communication
Business cannot be undertaken without stakeholders and society. We identify important stakeholders who are essential to the TEL Group’sbusiness. For these stakeholders, we clarify our roles and responsibilities related to the corporate functions they face in daily business. While
helping such stakeholders fully understand the progress of our business activities and future plans, we make use of the feedback obtained
from the communication for our business at an early stage.

Measures against stakeholder communication-related risks
To act in a fair and timely manner with regard to stakeholders obtaining our information, we periodically file our official report to thepublic domain and make our press release and information available on our official website. To secure communication channels with anystakeholders, contact information is clearly indicated on the website.

TEL’s keystakeholders

Functions in charge

Shareholders/investors

Management, IR

Customers

Sales, R&D, Marketing

Suppliers

Procurement

Employees

Management, HR

Local communities

General Affairs

Governments/associations

General Affairs

1

Key communication methods

Earnings announcement (quarterly), interviews, overseas roadshow(once or twice/year)
Interviews, executive meetings, survey (annual), Technology conference
Business Update Briefing (biannual), Partners Day (annual), STQA1 audit,
interviews
Employee meetings, Technology conference, interviews, survey (annual)
Factory tours, participation in and hosting local events and contributions,interviews
Compliance to laws/regulations, filing to the public domain, monitoring
and advocacy, coalition with industry and external groups

STQA: Supplier Total Quality Assessment

Examples of stakeholder communication
Example 1: FTSE4Good Global Index

Example 2: Technology Conference
The TEL Group considers building networks for communication
with customers and within the Group as indispensable for driving
innovation and making effective use of information assets. We
hold the Technology Conference internally and externally for
information sharing and multifaceted communication. Bothparticipating customers and employees have provided favorable
feedback on the conferences.

Tokyo Electron selected forinclusion in the FTSE4Good
Global Index
In recognition of our initiatives in communication and disclosure,
FTSE, a wholly owned company of the London Stock Exchange,
has selected Tokyo Electron for the FTSE4Good Global Index
every year since September 2003. The Index is designed tomeasure the performance of companies demonstrating strong
Environmental, Social and Governance (ESG) practices.

Technology Conference7