Environmental and Social Report 2008

TOKYO ELECTRON LIMITEDTEL Values
T E L Va lu e sTokyo Electron Limited (TEL) summarized the values and codes of conduct of the Tokyo ElectronGroup as TEL Values in April 2006. We will share TEL values with all employees of the Group aroundthe world, which will in turn drive us toward new growth in the future.
TEL Values

TEL Values

Pride

Challenge

We take pride in providing high-value products
and services.
● We offer our customers cutting-edge
technological products, along with the highest
level of quality and technical service, in the
pursuit of total customer satisfaction.
● We consider profit to be an important measureof value in our products and services.

● We view changes as opportunities, andrespond to them flexibly and positively.
● We are tolerant of failure, and consider it
important to learn from the process andresults.

TEL Values

TEL Values

TEL Values

Ownership

Te a m w o r kAwareness

We will keep ownership in mind as we think things
through, and engage in thorough implementationin order to achieve our goals.

We respect each other’s individuality and place ahigh priority on teamwork.

We must have awareness and accept
responsibility for our behavior as respectful
members of society.

● We are always alert to problems, and tackle
challenges with enthusiasm and a sense of
responsibility.

● We create a workplace with an open
atmosphere and positive communication.

● We strictly comply with laws and regulations
and the rules of society.

● We establish relationships of trust with ourbusiness partners in order to facilitate mutual
growth.

● We give top priority to safety, health, and theglobal environment.

● We make decisions quickly, and take what we
consider to be the best course of action.

● We strive to become a company that local
communities hold in high esteem.

Editorial Policy

Scope of Reporting

This report has been written to demonstrate the directions
the Tokyo Electron Group is taking to follow through on its
commitment to environmental, health, and safety issues
as it moves into the future, Tokyo Electron stands firm in
its commitment to the environment as an integral part of its
business operations.

n Organizations covered: Tokyo Electron Group

EuropeJapan• Tokyo Electron Europe Limited• Tokyo Electron Limited• Tokyo Electron Israel Limited• Tokyo Electron AT Limited

Asia• Tokyo Electron Tohoku Limited• Tokyo Electron Korea Limited• Tokyo Electron TS Limited• Tokyo Electron Korea Solution Limited• Tokyo Electron Kyushu Limited• Tokyo Electron Taiwan Limited• Tokyo Electron Technology Development Institute, Inc.

• Tokyo Electron (Shanghai) Limited• Tokyo Electron Software Technologies Limited• Tokyo Electron (Shanghai) Logistic Center Limited● In the section titled "Commitment by Top Management," theChairman and President of TEL express their opinions on
the Group's societal roles and long-term missions. We are
pursuing the photovoltaic (PV) cell production equipment
business as an initial step to launching and establishing aclean technology business. Pursuing PV technology is inparallel with our ongoing efforts to make our business kinder
to the environment. This report will detail the background andobjectives for this new business venture (see pages 4 and 5
and pages 8 and 9).
● A portion of the “Highlights” section features the TEL
missions, defining the Group’s missions and describing how
the Group intends to contribute to environmental solutions
through its business. We have also received comments from athird-party expert on TEL missions (see pages 6 and 7).
● We invited our customers and suppliers to a roundtable
meeting themed, “Toward Halving the Environmental Impact
at Semiconductor Factories,” where participants shared theirrespective challenges and actions and discussed their roles
in working to achieve this goal (see pages 10 to 13).
In preparing this report, we referred to the Environmental
Reporting Guidelines (Fiscal Year 2007 Version) issued by
Japan’s Ministry of the Environment and the 2006 Sustainability
Reporting Guidelines published by the Global Reporting
Initiative.
We hope we can promote communication with all stakeholdersof the Tokyo Electron Group through this report and incorporate
their opinions into our future activities.

2

We accept the challenge of going beyond what
others are doing in pursuing our goal of becoming
number one globally.

TOKYO ELECTRON Environmental and Social Report 2008

• Tokyo Electron FE Limited• Tokyo Electron PS Limited• Tokyo Electron BP Limitedn Period covered: Fiscal year (FY) 2008
(April 1, 2007 to March 31, 2008)• Tokyo Electron Agency Limited• Tokyo Electron PV Limited• Tokyo Electron Device Limited
United States• Tokyo Electron U.S. Holdings, Inc.
• Tokyo Electron America, Inc.
• Tokyo Electron Massachusetts, LLC.
• Timbre Technologies, Inc.
• TEL Venture Capital, Inc.
• TEL Technology Center, America, LLC.
• TEL Epion, lnc.

n Topics covered: Environmental, social, andeconomic

Contents

Company name: Tokyo Electron Limited (TEL)TEL Values, Editorial Policy, Scope ofReporting2

Corporate Profile

3

Commitment by Top Management

4Address: Akasaka Biz Tower, 3-1 Akasaka 5-chome,
Minato-ku, Tokyo 107-6325, Japan
Tel.: +81-3-5561-7000
Established: November 11, 1963
Capital: ¥54,961,190,000 (as of April 1, 2008)
Main products: Semiconductor production equipment andflat panel display (FPD) production equipment

Highlights

Employees: 973 (non-consolidated, as of April 1, 2008)
10,685 (consolidated, as of April 1, 2008)

l TEL Missions

6

l Development of the PV Cell Production
Equipment Business8

l Roundtable Meeting with Stakeholders
Reducing the Environmental Impact
by Half at Semiconductor Factories

10

Net Sales and Ordinary Income (Consolidated)(Billions of yen)
Net sales

Ordinary income

635.7

906.0

851.9

673.6

C o r p o r a t e Pr o fil eCorporate Profile

Management Report

529.6

65.6

75.9

2005.32006.321.1

02004.3

Net Sales by Division(Consolidated) (Billions of yen)
Other

0.4

Electronic components& computer networks
FPD production
equipment

2008.3

Net Sales by Region(Consolidated) (%)
SE Asia

China 4.3
Europe 4.1

3.8

111.1
North
Americal Compliance

15

EHS Reportl EHS Management

16

l EHS Activity Goals and Results/
Environmental Accounting

19

l Product-Related Initiatives for theEnvironment

20

l Environmental Initiatives in Transportation

12.0 Year ended 35.8
March 31,
Korea
2008
10.0

25

Year ended
March 31,2008

l Environmental Initiatives by Our
Suppliers

26

Semiconductor production
equipment

Taiwanl Plant and Office Initiatives for theEnvironment

28

l Health and Safety

32

68.0

Capital Expenditures andR&D Expenses

Group Employees(No. of persons)

Japan

30.0

726.4

(Billions of yen)

8,945

R&D expenses
Capital expenditures

10,685
9,877
9,129

8,942
56.9 66.0
44.1 43.8

0

14

172.7

143.9

2007.3l Corporate Governance2004.4 2005.4 2006.4 2007.4 2008.4

0Social Reportl Relationship with Employees

34l Communicating with Local Communities

35

l Comments from a Stakeholder

37

49.1

11.0 9.8 13.3

27.1 22.7

2004.3 2005.3 2006.3 2007.3 2008.3

3

Commitment by Top Management

Commitment by Top Management
The social mission of the Tokyo Electron Group is to recognize theseverity of global environmental issues and make positive contributions
toward solving them through our business operations
Promoting the photovoltaic (PV) cell production
equipment business, together with an ongoing focus
on increasing the energy efficiency of semiconductor
and FPD production equipment
To achieve lower electricity consumption worldwide, alternative
energy technologies need to be developed and commercialized forwidespread use as soon as possible. To make this happen, the Grouphas established a joint venture with Sharp Corporation to launch a PV
cell production equipment business.
We held extensive discussions on which direction the Groupshould go in light of the technological and economic obstacles theworld is now facing. Our conclusion was that we should not limit
ourselves to existing semiconductor and FPD fields but make further
direct contributions to the environment.

Tetsuro Higashi

Developing natural energy technologies is not only a
responsibility but an opportunity

Chairman & CEOTokyo Electron Limited

In the hope of closing the gap with developed nations, emerging
countries are now looking to alternative energy sources that can besupplied efficiently, safely and in sufficient amounts. Solar power

Contributing to the global community throughtechnological breakthroughs that enable a substantial
reduction of our environmental impact—this is theGroup’s mission

and other natural energies must be at the core of such alternative
sources. In order to encourage widespread use of PV cells as thestandard, we need to improve the efficiency of their light energy
conversion and offer related equipment at a lower cost. Making thishappen is our responsibility, but we can also see a great number of

Sixty-one years have passed since the first transistor was invented

At the Tokyo Electron Group, we have a culture that welcomessemiconductors have replaced vacuum tubes to become theactive and open discussion among employees. Our employees aretechnological mainstay, helping achieve significant improvements

passionate about conserving the environment and a mind-set ofin productivity and making society more prosperous. Considering

motivating and inspiring colleagues permeates the entire Group. Our

how much energy would have been required to achieve the current

contributions to global communities continue to expand across wider

productivity level without semiconductors, we realize how big a role

areas. Our efforts to develop and commercialize PV cells have only

semiconductors have been playing in order to sustain the affluent

just begun; metaphorically, we have only accomplished the first 50

and convenient lifestyles we enjoy today. However, because of thismeters of a full marathon.

high productivity and convenience, our energy consumption has alsoThis year will be marked as the starting point of more substantial

risen significantly and the global environment is now heading toward

contributions to the global environment through innovation andthe limit of its sustainability.

growth.

Given the fact that semiconductors serve as a basis for many, if
not all, modern industries, it is imperative that our environmental
impact be reduced at every stage of the product lifecycle, frommanufacturing to consumer use, by improving energy efficiency andtaking other necessary measures. Well aware of this pressing social
situation, we are committed to becoming a part of environmental
solutions. This is one of the key elements of the TEL Missions (seepages 6 and 7).

4business opportunities in this area.

in 1947 in the aftermath of World War II. During this period,

TOKYO ELECTRON Environmental and Social Report 2008

Steadily accumulating technological capabilities has
given rise to a new PV cell production business
The Tokyo Electron Group has decided to enter the clean technology

Commitment by Top Management

Development and adoption of natural energy products to help solve
energy issues and achieve world peacedevelopment market in full force. Such a bold decision would havebeen impossible without the production equipment technologies wehave developed and manufactuerd over many years.
Semiconductors have been of tremendous assistance in making
our lives more convenient and affluent. However, when we step backand think about what we truly mean by “affluence,” considering
today’s societal problems such as international economic disparities,
we realize that solving energy issues is more urgent than pursuingfurther convenience.
It is not surprising that society’s expectations of the Groupchange over time as contemporary social concerns also change. We
anticipate that the PV cell production equipment business will help
meet present-day societal needs. This new initiative will be developed
based on the solid foundation we have built up over many years,
including a variety of improvements and technological solutions we

Kiyoshi Satohave provided for our customers to help improve the productivity of

President & COO
Tokyo Electron Limited

their factories, and semiconductor and FPD production equipment
manufactured at those sites.

We will aim to reduce our environmental imact by halfby 2015

Development of clean technologies is the mostimportant task in solving energy issues
The sheer gravity of global energy issues encouraged us to start a PV

About 80% of the total environmental impact of semiconductor

cell production equipment business in earnest—as an initial step to

production equipment across its lifecycle is generated when

tap into the clean technology market—in parallel with reducing thethe equipment is in use at customers’ factories. Thus, we will
focus on proposing and implementing measures to improve

environmental impact of existing products.
Discussions at the Davos meeting1, which I have attended for theenergy efficiency of our products. In fiscal 2008, we successfully

past two years, acutely reminded me that the current energy situation

reduced electricity consumption of a certain product by about

has reached a point where unavailability of new energy resources to

50% under a technological partnership set up with client facilities.

replace oil reasonably soon could lead to international conflict.

This accomplishment was recognized as an excellent example

I believe that our initiative to achieve a stable supply of high-of environmentally conscious initiatives, for which we received aperformance yet affordable PV cells in the near future will ultimately

customer award.

help close the economic gap and maintain peace throughout the

As the next step, we aim to develop equipment that enables aworld.

50% reduction of the total environmental impact of new customer

Maintaining a global perspective is important today as a wide

factories scheduled for completion in 2015. This goal is specified inrange of issues need to be addressed. At the Davos meeting, I was

our latest mid-term plan (see page 18).

able to gain a number of fresh perspectives, which I now share withThe Group will continue taking aggressive actions to reduce theenvironmental impact of our products and business.
1	Davos meeting: Annual meeting of the World Economic Forum held in Davos,
Switzerland, where the world’s corporate managers, politicians, and economists
gather to discuss global politics and the economy.

our employees on various occasions.
Recognizing the value of our business in society, we at theTokyo Electron Group will continue striving to establish outstanding
technologies that contribute to the global community.

TOKYO ELECTRON Environmental and Social Report 20085

H i g h l i g h ts

TEL Missions
TEL Missions

All missions of TEL are for achieving innovation, growth, and preservationof the environment
About TEL Missions

core semiconductor and display technologies in order to contribute

We at TEL have recently defined our core missions. As our roles haveto the sound development of our industry and broader society; andchanged in response to our dynamically changing society, all TEL

contributions to environmental solutions through the operation ofmembers need to share an understanding of the direction TEL should

a new business as well as reduction of the environmental impact

take looking toward the future. The defined missions were announcedof our existing products and operations. We, at the Tokyo Electron

by our Chairman and CEO Tetsuro Higashi at the Tokyo ElectronGroup, are committed to making positive contributions to society byGroup Spring 2008 Top Management Conference. The text of thisproviding new value under the themes of innovation, growth, and theannouncement is shown below. The TEL missions, in essence, callenvironment.

for: aggressive pursuit of technological breakthroughs based on our

HIGHLIGHTs
Highlights

Innovation, Growth, the Environment
The electronics industry, in which Tokyo Electron operates, and the information andtelecommunications technology field in particular, is becoming increasingly important
globally. The reason is that it supplies core technologies for various industries expected

MANAGEMENT Report

to demonstrate high growth in the future, including the medical, educational, financial,automotive, aerospace, safety and environmental fields. As core technologies supportingthese industries, Tokyo Electron’s products have contributed greatly to the developmentof industry along with its technological innovations. Looking ahead, the technologicalinnovation of these fields themselves is expected to be accompanied by additional
growth supported by new advances incorporating technologies in the adjacent fields ofnanotechnology, biotechnology and MEMS technology.
Tokyo Electron reaffirms its commitment to continue its unremitting endeavors with

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regard to the existing products and technologies that are the cornerstone of its business aswell as new fields adjacent to them.
In this way, we will take the lead on a worldwide scale through “Innovation” and“Growth.”Furthermore, while technological development contributes to an improved quality oflife for humans, it can also have an adverse impact upon safety and the environment, and
if not addressed, this situation could speed up the depletion of global energy resources and

SOCIAL Report

the degradation of the global environment. Tokyo Electron intends to contribute to thehealthy development of humankind, and the company acknowledges that one of its mostimportant missions is to contribute to reducing environmental impact, both as a global
phenomenon, and as an issue inherent within the technological fields in which it is active.
Tetsuro Higashi
Chairman & CEOTokyo Electron Limited

6

energy business including PV cell production equipment as a part

TEL believes tackling environmental issues is a part of therelated technologies. At the same time, we are making progress

responsibilities and missions of any corporation. We are also

in reducing the environmental impact of our existing products,

aware that there are substantial business opportunities in this area.

such as semiconductor production equipment and FPD production

The Group is therefore focusing on its new environment/cleanequipment.

TEL Missions

Addressing Environmental Issues throughTechnologies

of its mainline operations, while striving to develop and innovate

Strengthening R&D in the Environment/Clean Energy and in Existing Operations
MEMS1
Semiconductor
production equipmentl RLSA 2-related– CVD– Etchingl GCIB 3 technologyl	Cu barrier/seed CVD
MEMS: Micro Electro Mechanical Systems

2

RLSA: Radial Line Slot Antenna

3

GCIB: Gas Cluster Ion Beam

FPD production
equipmentl	PV cell production
equipmentl	SiC epitaxial equipmentl	Environmental retrofit
in equipmentl D ense plasma
CVDl	Organic electroluminescence production
equipment

Third Party Comments on TEL Missions

TOKYO ELECTRON Environmental and Social Report 2008

SOCIAL Report

Human activities have already exceeded the sustainable limits of the earth’s
With regard to these missions, I would like to say a few words to TEL
natural and energy resources. If we continue producing, consuming andemployees. As the words “innovation” and “growth” used in the missions
disposing materials in massive quantities as we do today, human society
could be considered somewhat trite, I am concerned that the message
will eventually collapse due to global ecological imbalance. We must change
contained in the missions may not carry the same significance among
the structure of our society so as to lead sustainable lives where resources
employees as Chairman Higashi truly intends to communicate. I hope
are used within the capacity of our planet.
all TEL employees will embrace the true meaning of the missions, i.e.,
While the necessity of such change has been discussed and recognizedrecognizing TEL’s roles in a society which no longer seeks quantitative
worldwide at a rapid pace, business communities in general are still
expansion, and promoting correct innovation and correct growth.
hesitant to change their traditional business models, which are based on
I also look forward to TEL holding extensive discussions within thethe assumption that the present
socialparadigm of Environmental
qualitative expansion
firm2008
about its roles in light of total optimization within society, based on
TOKYO
ELECTRON
and Social Reportwill continue.
which the company will work to innovate itself and achieve growth while
Given this, I find the missions that TEL has announced excellent andcontributing to the development of society. By doing so, I believe TEL will
visionary, as they recognize the hard reality today’s world is facing andbe able to help conserve the global environment and society as we know it.
clearly define the company’s roles and directions to prevent the crisis.

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Itaru Yasui, PhD
Principal Fellow, Center for Research and Development Strategy, Japan Science and Technology Agency;
Professor Emeritus, the University of Tokyo; Vice-Rector, United Nations University

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1

Environment/
clean energy

HIGHLIGHTsl	MEMSproduction
equipment& electronic
components7

H i g h l i g h ts
D eve l o p m e n t o f t h e PV C e ll
Pr o d u c t i o n Eq ui p m e n t B u s in e s sDevelopment of the PV Cell
Production Equipment Business
Amid growing public expectations for renewable energy, the Tokyo Electron Group has announced
the launch of a PV cell production equipment business.

What is PV Power Generation?
most pressing agenda for society. We need to shift from being
dependent on fossil fuels to becoming a low carbon society by
utilizing renewable energy. Renewable energy is expected to makesignificant contributions toward preventing global warming as it canbe used semi-perpetually while emitting less greenhouse gases thancurrent mainstream energy sources.
PV power generation using solar energy is the leading player ofThin-film Si PV cell production equipment

Crystalline Si PV cells
Thin-film Si PV cells
Production (GW)

Market size (billions of yen)
1,800

100

80

2007–2020

1,500

25%

1,200

Average growthenergy in order to overcome present challenges, such as increase

HIGHLIGHTs

in energy conversion efficiency (from solar energy to electricity),
shortage of materials to produce related equipment, and cost/
efficiency issues.
The Group has started the PV cell production equipment business2015–2020

Average growth

37%

60

such renewable energy. However, further technological innovations
and cost reductions are necessary for common use of this green

Thin-film Si PV Cell Production
Equipment Market

PV Cell Production

Solving the problem of climate change and global warming is the

2007–2020

40

Average growth

52%

20

900
600
300

0

2007–2015

Average growth

44%

0

2007

2015

2020

2007

2015

2020

Source: TEL’s calculations based on the power demand forecast.

with a strong commitment to making contributions to environmental
solutions through our technological excellence.

PV Cell Business at the Tokyo Electron Group
Following an extensive period of basic research, the Group has

MANAGEMENT Report

decided to start a PV production equipment business.
TEL agreed with Sharp Corporation (“Sharp”) to launch a joint
venture, Tokyo Electron PV Limited, which will specialize in thedevelopment of commercial plasma CVD systems for use in thinfilm silicon PV cells. (Please note that this agreement pertains only

With technologicalinnovation, PV cells will
be applied acrossbroader areas

to plasma CVD systems for thin-film silicon PV cells: it is not anagreement on a comprehensive partnership on FPD production
equipment and other operations.)
Thin-film silicon PV cells, containing a thin layer of silicon
deposited on a glass substrate, is a type of solar cell that has
attracted significant interest in recent years. We aim to develop

EHS Reporthigher productive plasma CVD systems for thin-film silicon
PV cells by combining the Group’s experience and expertise invacuum plasma technology applied to the mass production ofsemiconductors and FPD production equipment, with technology forthin-film silicon PV cell production that Sharp, a leading company in
PV cell production, has built. The development of such CVD systems
will be conducted by the new joint venture of the Group and Sharp,
and production and sales will be conducted solely by the Group. We
intend to introduce the first model to market in 2009.

SOCIAL Report

8

TOKYO ELECTRON Environmental and Social Report 2008

Mitsuru Onozato
Senior Vice President
General Manager
FPD/PVE DivisionTokyo Electron Limited

Tetsuroh Muramatsu
PhD
Executive Officer
Group General Manager
Solar Systems Group
Sharp Corporation

EHS Report
SOCIAL Report

TOKYO ELECTRON Environmental and Social Report 2008

MANAGEMENT Report

Since 1959 when we began our R&D efforts on PV cells, we at
Sharp have devoted about half a century to making this new energy
source one that can be used by more people and in broader areas.
In addition to our long-standing focus on crystalline PV cells, wehave been focusing our R&D efforts on thin-film PV cells and the
expansion of related business.
Producing thin-film PV cells requires a volume of silicon 100
times less than its crystalline counterparts. These products do not
lose the capacity to generate power even at high temperatures. Theirmajor target markets are the United States and European countries
for use as electricity power sources.
Another important strength is the short production process.
Plasma CVD systems hold the key. Each unit of PV cells produced
within plasma CVD systems will substantially determine whether or
not a technological breakthrough can take place, resulting in higher
energy conversion efficiency and substantially lower prices of thinfilm PV cells.
To date, we have produced plasma CVD systems at ourown facilities. To achieve mass production and further improve
performance of the systems, we have agreed to work together with
Tokyo Electron, a leader of semiconductor and FPD production
equipment business with sophisticated technologies and a company
with profound understanding and a solid strategy centering on the
future of PV cells.
At our new factory currently under construction in Sakai City,
Osaka, we plan to install these plasma CVD systems. In the initial
phase, we will aim for a 480 MW output level. Our eventual target isglobal output of 1 GW by operating additional overseas plants.
According to a forecast by the European Renewable Energy
Council (EREC), global electricity demand will double from thecurrent level by 2040, about 25% of which will be generated by solar
energy. I believe that a combination of Tokyo Electron’s equipment
technologies which have been built over many years and Sharp’s
thin-film PV cell technologies will help our society move one step
closer to becoming “low carbon.”HIGHLIGHTs

I feel climate change is happening—with greater intensity.
We at the Tokyo Electron Group have made up our minds tomake a fundamental difference in society through our main businessby using our reservoir of excellent technologies. We documented
this commitment in the TEL Missions (see pages 6 and 7). The
PV cell production equipment business is the first step we havetaken to materialize these missions. Out of a variety of production
methodologies to produce PV cells, we will develop plasma CVD
systems for thin-film silicon PV cells.
The objective of this new business is to develop PV cells withgreat power efficiency and to make them available worldwide ataffordable prices. We are confident that we can make this happen
by combining the technologies of PV cell leader Sharp Corporationand our manufacturing processes and equipment technologies
steadily built on the back of development of semiconductor and FPD
production equipment.
Looking toward the upcoming launch of joint development in fullforce, the two companies share a strong passion and commitment todeveloping excellent PV cells.
For TEL, semiconductor business is well within our expertise.
Our extensive experience tells us the best road to take in terms ofeverything from business models to people’s mindsets in addition to
responding to the expectations of society.
In contrast, energy-related business is unknown territory for
us. We are bracing ourselves for a totally new world, from technicalelements of PV cell production equipment to target markets andcollaboration with policymakers on electric power and with partners
in developing countries.
Nonetheless, we have taken a bold initial step looking wellinto the next decade. We do not consider this PV cell production
equipment business as a spin-off of our existing semiconductor and
FPD businesses. Rather, we intend to grow this PV cell production
equipment business under the long-term goal of creating anothermainstay business that represents our new corporate DNA.
Sunlight is an energy source that everybody on this planet
can benefit from equally. Whether you are in a developing ordeveloped country does not matter. We hope to see the creationof a low-carbon society where people all over the world, including
in developing countries, use PV cells manufactured with ourequipment. We will work tirelessly toward achieving this goal.

Toward a low-carbon society, we look to
TEL’s reservoir of production equipment
technologies.

D eve l o p m e n t o f t h e PV C e ll
Pr o d u c t i o n Eq ui p m e n t B u s in e s s

We will strive to achieve worldwide use ofsolar energy to help solve environmental
problems.

9

Roundtable Meeting with Stakeholders

Reducing Environmental Impact by Half at Semiconductor Factories

H i g h l i g h ts
Roundtable Meeting with Stakeholders

Reducing Environmental Impact by Half at Semiconductor Factories—How can semiconductor-related companies best collaborate to achieve total optimality?

Reducing the impact of the chip-making process on the environment is an industry-wide issue for thesemiconductor sector, as the process involves massive use of electricity, chemical substances andother resources. We held a roundtable meeting on July 1, 2008 to discuss necessary collaborationand cooperation in order to reduce the environmental impact at semiconductor factories by half,
inviting representatives from semiconductor manufacturers, relevant equipment and component
manufacturers and a company that designs and constructs clean rooms.

Invited Participants in the Roundtable Meetingl Intel Corporationl Samsung Electronics

Mr. Hidetoshi Sakura
Dr. Tae-Jin Parkl Toshiba Corporation Semiconductor Company Dr. Yuichi Mikata

Sakura: At Intel, we have a system in place to produce productswith a lower environmental impact. When developing a new
manufacturing process, we develop guidelines covering relevant
matters, such as energy efficiency improvement, restriction on theuse of chemical substances and occupational safety with reference tol Edwards Japan Limited

Mr. Chiaki Urano

relevant guidelines like SEMI, RoHS, and EICC.3
Our energy consumption target during the period from 2002 tol Ebara Corporation

Mr. Nobuharu Noji2010 aims at an average 4% annual reduction per production unit.

l Taisei Corporation

Mr. Tomoo Gocho

We have achieved a total 20% reduction over the past five years. As

HIGHLIGHTs

the next step, we are working toward a long-term goal of reducing
electricity consumption using guidelines such as SEMI S23 in ourEnvironmental Activities within the Semiconductor
Industry: Progresses to Date and Future Challenges

use of relevant equipment. We have also asked our suppliers to

Saito (TEL): The Tokyo Electron Group plans to achieve a 35%

3 EICC: The Electric Industry Code of Conduct, guidelines for responsible supply
chain management

reduction in energy use per unit area of wafer from the 1999 levelby 2010, in line with the policy of ITRS1. We set this reduction

present their roadmaps to work together for this purpose.

MANAGEMENT Reporttarget as we believe that reducing the environmental impact of every

Park: In the Seoul metropolitan area, regulations on the emissions ofCO2, NOx, SOx and other applicable substances have been changed

single process in semiconductor manufacturing is an industry-widefrom a concentration base to a total emission base. A 50% reduction

responsibility. ITRS recently released an additional Roadmap whichof these emissions from the 2001 levels is also required. To meetcalls for a 50% reduction of the total fab energy use during the 2016-

these new requirements, our factories are analyzing the substances

2022 period from the 2007 levels. The semiconductor industry needs

captured by gas scrubbers and taking necessary actions. We haveto take collective action to meet this target.

accomplished a high level of energy conservation in our operations,

Meanwhile, to address the degrading environment, every memberof the semiconductor industry, from upstream to downstream, needs

thanks to support from the semiconductor manufacturer.
Mikata: Reducing CO2 emissions directly means reducing electricity

EHS Report

to intensify their environmental efforts by setting additional targets
in areas not covered by the SEMI S23 2, such as waste, chemicalcosts. This is a powerful motivation for us at Toshiba to lower

substances and recycling.

unit area electricity use of new facilities by half compared to

1 ITRS: International Technology Roadmap for Semiconductors, an organizationof the semiconductor industry which sets industry-wide targets on technologies,
environment and other applicable elements.

200-millimeter wafers. A shift to the use of 300-milimeter wafers was

2 SEMI S23: Guidelines for energy conservation for semiconductor production
equipment issued by the Semiconductor Equipment and Materials International(SEMI), an international industry organization for semiconductor/FPD production
equipment and material manufacturers.

emissions. Over the past four years, we have slashed our per

the major reason for reinforcing our reduction efforts, which, in turn,led us to reduce consumption per basic unit. As a result, we havesuccessfully limited the increase of CO2 emissions for the past three
to four years, despite the fact that our productivity has increased
during the period.

Current Environmental Cooperation among Firms
related to Semiconductor Manufacturing
SOCIAL Report

Mikata: Toshiba started the Clean Room Econology4 Project withproduction equipment manufacturers and facility engineers from 2004.
In this trilateral initiative led by Toshiba’s production manager, working
groups (on power facilities, manufacturing equipment, etc.) discussand explore the optimal specifications of relevant facilities. The
project has helped us reduce energy loss and generate technologicalinnovation as well as new ideas to improve energy efficiency.
4 Econology: A word coined from “ecology,” “technology” and “economy.”

10

TOKYO ELECTRON Environmental and Social Report 2008

Roundtable Meeting with Stakeholders

Reducing Environmental Impact by Half at Semiconductor Factories

our company—require an occasion to coordinate their respective

for example, the temperatures and pressures involved would beactions, rather than implementing them individually. Discussing anddifferent from conventional ones, which means that the types ofagreeing on a policy to reduce energy consumption would generategases required and the conditions of chemical substances wouldmuch greater benefits. To this end, we need to invest time foralso be different. However, we do not usually have access to detailed
information not included in the MSDS5. We thus seek necessary

in-depth discussions.

supplemental information from equipment manufacturers.

Mikata: Improving productivity is a very effective measure to reduce
CO2 emissions. Enhanced processing capabilities per unit hour

5 MSDS: Material Safety Data Sheetor higher utilization of equipment means that the same numberof facilities produces a greater number of semiconductors, which

Urano: While semiconductor manufacturers develop roadmaps forindicates reduced electricity consumption and CO2 emissions.
Cutting back on standby power consumption is anothermost important element in the next phase is which specific actions

challenge. Most equipment, barring lithography equipment, is not

are to be taken along with the roadmaps. Therefore, it is essential tonecessarily used all the time throughout the entire wafer processing

examine every element (equipment, component, etc.) of the chip-

operation. Standby electricity may account for 20 to 30% of overallmaking process. We, as a supplier of exhaust systems, are doing

power consumption depending on the size of fab, and we hope aour part by working to improve energy efficiency of our component

power-saving function, just like “sleep mode” for PCs, will be madeproducts. If we can obtain related information, such as equipment

available. It should start with standardizing the specifications of sleep

locations and the distance from a gas scrubber and dry pumps, we

mode.

will be able to suggest more concrete, useful ideas.

Ibuka (TEL): I agree. A sleep mode needs to be redefined by SEMI

Sakura: At Intel, we meet equipment manufacturers regularly toStandards or their equivalents.

share information on new technologies at a very early stage.

Noji: Speaking of reducing power consumption, Ebara is a pioneer in

EHS Report

reducing CO2 emissions and taking other environmental steps, the

MANAGEMENT Report

three parties involved—the facility and equipment manufacturers anddevelopment phase. In a new semiconductor manufacturing process,HIGHLIGHTs

Park: I agree with the necessity of such trilateral consultation in theenergy-efficient pumps and has been providing pumps powered byvariable-speed motors since 1995. These pumps enable the setting

Urano: Semiconductor manufacturers and equipment manufacturersof a sleep mode. In reality, however, some equipment manufacturers

should always work closely with one another in developing theare reluctant to install the pumps, partly due to the implications on

manufacturing process. Energy use can be reduced by simple

the yield rate and manufacturing process.

improvements such as installing pipes of optimal length and treating

However, over a decade of operation, our dry pumps withgases closer to the manufacturing equipment. Full consideration

variable-speed motors consume 80% less energy. Futureof the layout of the entire clean room may lead to smaller and thus

improvement of processing technology for pump components will

cheaper dry pumps.

achieve greater energy efficiency of the pumps alone. We need to

Park: Such discussion for improvement is much needed. We revised

seek comprehensive solutions that combine improved performance

our manufacturing process three times in the past but did notof individual equipment and a reduction in standby power

witness any effective collaboration among the related parties. The

consumption.

TOKYO ELECTRON Environmental and Social Report 2008

SOCIAL Report

Cooperation in the Future11

Roundtable Meeting with Stakeholders

Reducing Environmental Impact by Half at Semiconductor Factories

H i g h l i g h ts
Roundtable Meeting with Stakeholders

Reducing Environmental Impact by Half at Semiconductor Factories

Hidetoshi Sakura

Tae-Jin Park

Yuichi Mikata

Chiaki Urano

Nobuharu NojiTomoo Gocho

Intel Corporation

Samsung Electronics

Toshiba Corporation
Semiconductor Company

Edwards Japan Limited

Ebara Corporation

Taisei Corporation

HIGHLIGHTs
MANAGEMENT Report

Ishida (TEL): To attain higher productivity, minimizing defects

We of course intend to undertake further study on the relevant

is the key. More active communications and cooperation amongequipment, which is still an unknown quantity for us.

semiconductor manufacturers, equipment manufacturers andprocesses and the costs of respective processes will bring about

Necessity of Both Individual Cooperative Action
and Collective Standardization

reductions in the number of defective products.

Yamanaka (TEL): It is true that certain elements can be standardizedmaterial manufacturers with regard to the number of required

While I understand some information is subject to confidentiality

EHS Report
SOCIAL Report

hand, one-on-one discussions may not always bring progress ascompanies is indispensable in developing next-generation devices.

the discussing parties may or may not acquire the contract, or the

Araki (TEL): How about designing overall factory layout? Some cases

relevant contract may or may not be determined by bidding.

show simply changing the pump location or pipe length has led to

Ibuka (TEL): Discussions among relevant industry organizations,higher productivity by 5 to 10%.

such as SEMI, Semiconductor Equipment Association of Japan

Gocho: As a construction company, we focus primarily on providing(SEAJ) and the Japan Electronics and Information Technology

sturdy, long-lasting buildings in earthquake-prone Japan. Using theIndustries Association (JEITA), sometimes lead to solutions. We insame approach, we are working on comprehensive measures tothe same industry can discuss, share information and cooperate withprotect clean rooms from quake-related damage such as through theone another, where needed, to the extent that confidentiality issues

development of seismic control and isolation technologies. Having

do not arise.

said that, when we actually construct a semiconductor factory, it is

Ishida (TEL): When it comes to cooperation, it would be sensible forvery difficult for us to do anything more than design details of thesemiconductor manufacturers to take the lead.

factory in line with the grand design, as the time from the obtainment

Mikata: I think effective cooperation takes place when relevantof the grand design on the occasion of bidding to the launch ofparties — the semiconductor manufacturer, the equipment

construction is generally quite short.

manufacturer and the construction company — exchange relevant

We wish to be involved from the planning phase, where possible.
We currently find it difficult to take the initiative and propose ideas.

12

through discussions among relevant trade associations. On the otherrestrictions, I still believe collaboration among the relevantTOKYO ELECTRON Environmental and Social Report 2008

information and insights to eliminate inefficiencies at each relevant
process in the entire project.

Munetsugu Yamanaka Satoshi Saito

Shigehito Ibuka

Joji Hoshi

Marketing DivisionTokyo Electron Limited

Corporate Strategic
Planning Dept.
Tokyo Electron Limited

Environment,
Health & Safety CenterTokyo Electron Limited

Environment,
Health & Safety CenterTokyo Electron Limited

At the same time, standardization efforts that have theEnvironment,
Health & Safety CenterTokyo Electron Limited

impact of facilities if our product developers learn more about thecooling water and to high-temperature water resources.

can facilitate lower energy consumption. To this end, a unified

Ibuka (TEL): Given the magnitude of the social demand forcoefficient was established and demands from both equipment andenvironmental solutions, we need to establish and achieve ambitious

semiconductor manufacturers were accommodated to the greatest

goals; otherwise public trust in the entire semiconductor industry

extent possible. The crux is that we need to forge collaborative

may be eroded. Together, we intend to work closely toward total

working relationships among related parties by aligning interfaces

optimality.

and identifying what should be done independently and what should

Saito (TEL): Today’s discussion led me to think we can still eliminate

be done through collaboration. Both individual collaborative efforts

inefficiencies in clean rooms simply by sharing information in aand collective standardizing processes are important.

timely manner, among other factors. With support and insights

Ishida (TEL): Exactly. We at TEL have long studied the SEMI

from various stakeholders, including customers, related device

Standards, through which we have played an important role inmanufacturers and construction companies, we intend to achieveaddressing environmental issues and improving productivity.

further reductions in the environmental impact of our products andWithout such unified standards, different manufacturers would havesemiconductor factories.

developed different product specifications, entailing unnecessary
costs and substantial waste of resources.
Mikata: SEMI S23 is an example of standardization that is beneficial
and user-friendly. By applying the energy coefficients defined by thisstandard, you can quantify your energy use at every process acrossthe product lifecycle. The resulting numerical data presents a clear
picture of which process is the most energy intensive and which
process has room for improvement.

Again, collaboration is the key here.
Hoshi (TEL): SEMI S23 has made our life easier as its coefficientsallow us to track various energy consumption data centrally. We
will be able to develop equipment that can reduce the environmental

SOCIAL Report

In this year’s roundtable meeting for our environmental and social
report, we invited our customers, manufacturers of semiconductor
production equipment components and a construction company thatdesigns and constructs clean rooms to participate, as we did for the lastyear’s publication. We are delighted to have had a constructive andfruitful discussion, which clearly indicated an overall direction for future
activities.
At the conference of the International Semiconductor Environment,
Safety & Health (ISESH) held in Sapporo on June 23, 2008, ourChairman, Tetsuro Higashi emphasized in his keynote speech that thesemiconductor industry needs to take collective action in earnest toaddress environmental issues, particularly global warming, and thatindustry organizations such as SEMI, International SEMATECH
Manufacturing Initiative (ISMI), JEITA and SEAJ need to take initiatives
to promote industry-wide efforts. He also declared that the Tokyo
Electron Group will operate its business with particular focus on
innovation, growth and the environment.
While this roundtable meeting was truly meaningful, solving
environmental issues requires more than a single company or country’s
initiatives but worldwide efforts. I am convinced that in light of thisenormous global challenge, corporate social responsibility (CSR) will
become of even greater importance for corporations, whether they arelarge or small.

EHS Report

Such standardized coefficients cannot be determined without the
involvement of semiconductor, equipment and facility manufacturers.

Following the roundtable meeting …

MANAGEMENT Reportfacilities, such as the different coefficients applied to low-temperaturedeveloping the SEMI S23, the aim was to create a standard that

HIGHLIGHTs

participation of all relevant parties are also very important. In

Roundtable Meeting with Stakeholders

Hiroshi Ishida

Sales & Services Division
Japan
Tokyo Electron Limited

Reducing Environmental Impact by Half at Semiconductor Factories

Kaoru Araki

Satoshi Saito
Environment, Health & Safety CenterTokyo Electron Limited

TOKYO ELECTRON Environmental and Social Report 200813

M a n ag e ment R eport

C o r p o r a t e G ove r n a n c e

Corporate Governance
The Tokyo Electron Group continually works to improve its corporate governance practices
through various measures to ensure its business is operated in a way that maximizes the Group’s
corporate value.
Fundamental Policy Concerning Corporate
Governance

Establishing Even More Effective Internal Control
Systems

The Tokyo Electron Group recognizes the importance of enhancing

We are implementing internal control practices in line with our basic

corporate governance in order to maximize its corporate value for all

policies on internal controls, which were formulated in May 2006 and partly

stakeholders. With this recognition, we are committed to complying withrevised in April 2008. In addition, we are working to meet the requirements

corporate ethics and compliance programs. We are also dedicated toof an internal control system for financial reporting under the Financial

improving and reinforcing internal control and risk management systems,

Instruments and Exchange Act. In June 2008, we appointed the Chief

and to maintaining transparency and objectivity in our business activities.

Internal Control Director to further solidify our internal control systems.

The Framework of Corporate GovernanceInternal control systems

We develop and maintain an optimal and effective corporate

1. Compliance systemgovernance system guided by the following three basic principles:

HIGHLIGHTs

2. Risk management system

1) ensuring the transparency and soundness of business

3. System to ensure the appropriateness of financial reporting

management;
2) facilitating quick decision-making and the efficient execution of

4. System to store and manage information
5. System to ensure the efficiency of business execution

business management; and6. System to ensure appropriate business operations of thecorporate Group3) timely and suitable disclosure of information.
Specifically, the Board of Directors comprises 14 directors,

7. System to ensure the effectiveness of internal audits

including three external directors. The Board has two committees
to strengthen corporate governance: the Compensation Committee

1

MANAGEMENT Report

and the Nomination Committee2. The term of office for directors

Framework for Corporate Governance,
Internal Controls and Risk Management

is set at one year to allow prompt and flexible responses tochanges in the management environment. We have four statutory
auditors, two of whom are from outside the company. Statutory

Annual Shareholders’ Meeting

auditors attend important meetings including board meetings,
evaluate the performance of operational and financial audits andrisk management, and audit the performance of directors. In theexecution of business, we have introduced the executive officer

Nomination Committee
Board of Compensation Committee
Directors Chief Business Ethics Director

Statutory
Auditors

Independent
Auditors

Chief Internal Control Director

system to clearly separate the roles of the Board of Directors andof those actually executing business operations. We plan and

EHS Report

implement business strategies promptly under this system.
1 Compensation Committee: Makes a draft remuneration plan for the Chairman &CEO and the President & COO and presents the draft to the Board of Directors.
2 Nomination Committee: Selects candidates for directorships for submission to
the annual shareholders’ meeting and a candidate to be elected as president by the
Board of Directors.

Internal Controls and Risk Management
We have our Global Audit Center for internal controls. This Center

ReportRequest for
improvements

SOCIAL Reportand evaluates the effectiveness of the Group’s internal control systems.
Results of the evaluation may lead to the Center’s provision of support for
improvements to relevant departments and sites. In addition, the Center
makes regular reports to management on the audit results and meets withstatutory auditors periodically for information sharing and reporting.
To implement measures to manage risks, including business andoperational risks, we have established a department in charge of risk
management and this creates and revises in-house rules on risk management
and conducts risk-related education and awareness-raising activities.

14

TOKYO ELECTRON Environmental and Social Report 2008

Audit and improvement reports

Request for
improvements
ReportExecutive Officers

Reportconducts internal audits on business operations, compliance and systems
targeting Tokyo Electron Group’s bases both in Japan and overseas,

Confirms the progress of improvements andprovides instruction

Representative
Directors

Report

Audit

Risk Management
Function
Monitoring

Audit

Monitoring

Checks and balances

Business Dept.

Internal Audit Dept.
(Global Audit Center)

Request for
improvements

Request for
improvements

Administrative
Dept.

Audit

Audit

ComplianceApproach to Corporate Ethics and Legal
Compliancerevised the booklet describing the Code of Ethics and the provisions

Trust is and will always be the lifeline of the Tokyo Electron Group.

thereof in a question-and answer format, and we distributed the

The fundamental requirements for maintaining trust are rigorous

booklet to each of the directors and employees of the Group.

To facilitate in-depth understanding of the Code of Ethics, we also

C o m p li a n c e

The Tokyo Electron Group conducts fair and trustworthy business activities in strict compliancewith corporate ethics, laws and regulations.

conformity to our ethical standards and compliance with the law, by
our employees as individuals, and by each of our organizations. We

Measures to Strengthen the Compliance Systemgive first priority to compliance with high ethical standards and laws

We established our Compliance Regulations in 2004 (and revisedin conducting our business operations.

some provisions in 2008). The Regulations, which provide for basic
matters concerning compliance, are designed to help those engaged

Establishing Ethical Standards

in the business operations of the Tokyo Electron Group to understand

We believe that common standards must be applied throughout our

fully the relevant laws, regulations and international rules as well as

divisions in order to create the globally excellent company that we

in-house rules, and act accordingly at all times.
We also have a hotline (internal reporting system) for employees

describes our basic views. At the same time, we established theand others to report questionable actions in light of the Code of

Ethics Committee as an organization for actual operations.

Ethics, applicable laws, regulations and other relevant rules.

In June 2007, in response to the results of a survey conducted on

Reported concerns are handled by the director in charge of
ethical matters and the chairman of the Ethics Committee (on the

we revised our Code of Ethics, including adding items and modifying

matters regarding the Code of Ethics) or by the Director of theexpressions, to make them easier to understand and more consistent

General Affairs Department in a fair and sincere manner with duewith the current business environment and sense of ethics.

whistleblower protection.
We provide compliance-related information on the Company

The Code of Ethics of Tokyo Electron Group
Introduction

intranet and give employees web-based education to ensure that theyI. Principles
1. Compliance with Applicable Laws
2. Acting in Accordance with Social Conscience
3. Maintaining Harmonious Relationships with Local
Communities

importance, thereby further strengthening our compliance system.

II-2 Fair Trade
7. Implementing Fair and Open Competition
8. Fair Business with Suppliers
9. Handling of Confidential Information
10. Strict Export/Import Controls
11. Reasonable Exchanges of Gifts and Entertainment within
the Bounds of Common Sense

III. Being a Good Corporate Citizen
15. Prohibition of Insider Trading
16. Prohibition of Political Activities and Contributions
17. Prohibition of Involvement in Antisocial Forces
18. Respect for Individuals
Implementation of the Code of Ethics1

Leakage of personal information has become a major social concern
in recent years and companies are required to manage the personal
information they hold in an appropriate manner.
In Japan, following the enforcement of the Act on the Protectionof Personal Information in April 2005, the Tokyo Electron Group
formulated its basic policies, rules, and guidelines for the protectionof personal information and developed related manuals and otherdocuments. We provide web-based training programs to educate
employees on the implementation of such policies and rules andraise their awareness of these policies and rules by providing
relevant information via the intranet. Furthermore, in Japan weinvestigated personal information stored on PCs leased to employees
to understand the current status of how personal information is
being treated.
We also take a range of measures to ensure proper managementof personal information such as with the installation of exclusive
servers that store personal information only; by controlling access to
PCs for employees’ individual use with IC cards; periodical changesof passwords; introduction of encryption; and use of auxiliary storage

SOCIAL ReportII-3 Relationship between the Company and Individuals
12. Prohibition of Conduct Causing Conflicts of Interests
13. Prohibition of Improper Use of Company Assets
14. Prohibition of Conduct of Harassment

Protection of Personal Information

EHS Report

II. Honest and Fair Business Activities
II-1 Technology, Safety and the Environment
4. Ensuring Safety and Pursuing Quality
5. Promoting Environmental Preservation Activities
6. Ethics in Manufacturing

all understand our compliance policies and are more aware of their

MANAGEMENT Report

our Code of Ethics and compliance measures in the Group in 2005,

HIGHLIGHTs

envision. In 1998, we established a Code of Ethics, which concretely

devices with password-based access control.

1 The “Implementation” section provides specific matters and procedures.

TOKYO ELECTRON Environmental and Social Report 200815

E H S R e p o rt

EHS Management
EHS Management

Environment, Health, and Safety (EHS) activities are always an important priority
for the Tokyo Electron Group.

Basic Idea behind EHS Activities
The Tokyo Electron Group recognizes caring for people’s health andthat EHS activities will lead to long-term benefits for the entire Group.

safety and the global environment as top priorities for its business.

As a responsible member of society, we strive to help develop a more

We are therefore committed to being a company capable of earning

affluent society through our EHS activities.

the trust of all involved in our business operations. We also believe
The Tokyo Electron Group Credo and Principles
on Environmental Preservation

The Tokyo Electron Group
Safety and Health Credo and Principles

Highlights

The Tokyo Electron Group Credo on Environmental Preservation

The Tokyo Electron Group Safety and Health Credo

The Tokyo Electron Group believes that preserving the global environment andconstantly improving it is one of the most important objectives for mankind as well as its
business. Based on this credo, we are determined to expand our business by maintaining
harmony with the global environment, and thus win the trust of our many customers,
shareholders, employees and society in general.

Safety and health training are required for all employees and board members of theTokyo Electron Group. Our profit and delivery date requirements must not be met at thesacrifice of human life and the safety of our facilities and equipment.

The Tokyo Electron Group Principles on Environmental Preservation

1. Continuous Improvement
The Tokyo Electron Group is conscious that the factors that affect the safety andhealth of customers and its employees exist at the stage of manufacturing,transportation, installation, use, maintenance and service of its products. Based on
this awareness, we shall continually strive to improve the safety and health of our
products and eliminate factors that potentially affect human health.

MANAGEMENT Report

1. Continuous Improvement
The Tokyo Electron Group is conscious that products manufactured by the Groupaffect the environment, and based on this awareness, we, with our customers andsuppliers, shall continually strive to minimize the impact of processes and operations
on the environment. We will develop products consistently with a clearly definedenvironmental roadmap for all Group products, verifying the appropriateness ofefforts during design, manufacture and use. To further confirm the appropriatenessof such efforts, we will undertake activities that fully take into account regulatory andindustry requirements and the needs of customers and other stakeholders.
2. Knowledge
The Tokyo Electron Group continually strives to enhance its understanding of the
impact that the Group has on the environment and the responsibility that this entails.
In addition, the Group aims to gain a quantitative grasp of environmental factors, andthe impacts resulting from its activities and operations.
3. Performance Criteria
In addition to strict adherence to environmental laws, treaties and agreements, theTokyo Electron Group will also promote conservation of the global environment by
formulating activity plans that take into account industry standards and various otherenvironmental requirements.
4. Disclosure
In addition to ensuring that all employees clearly understand our environmental
concepts, policies, the state of company contributions toward environmental
protection and the state of product-related environmental efforts, as well as
improving levels of awareness, we will disclose relevant information to those outside
the Company via environmental reports and other means.
5. Partnership
The Tokyo Electron Group actively participates in environmental protection activities
practiced by its customers, suppliers and communities.

The Tokyo Electron Group Safety and Health Principles

2. Knowledge
The Tokyo Electron Group continually strives to enhance its understanding of safety
and health and improve these conditions for all people working at its sites. To that
end, the Group aims to gain a qualitative and quantitative grasp of safety and healthfactors on its activities and operations.
3. Performance Criteria
As well as strictly observing mandatory safety and health laws, treaties andagreements, the Tokyo Electron Group strives to enhance its own safety and healthmanagement system and improve global safety and health programs by the proactive
establishment of aggressive safety and health performance criteria.
4. Disclosure
The Tokyo Electron Group shares information about its safety and health credo,
policies and the progress of its safety and health activities with all board members
and employees, and will publish its progress to the general public as the need arises.
5. Partnership
The Tokyo Electron Group participates in safety and health activities practiced by its
customers, suppliers, and communities.
November 27, 1998

May 26, 2006

EHS Report
SOCIAL Report

16

Environment and Safety Activities Milestones of the Tokyo Electron GroupMay 1994

Standardization, Environment and Safety Center(Environment, Health & Safety Center) establishedMar. 1996

Product Safety Subcommittee (Tokyo Electron Group
Product EHS Technical Committee) launched

Apr. 1996

Environmental Subcommittee (Tokyo Electron Group EHS
Committee) launched

Dec. 1997

Sagami Plant acquires ISO 14001 certification (andsubsequently other plants also acquire the certification
one after another)

Sept. 1998

Tokyo Electron Group Credo and Principles on
Environmental Preservation establishedNov. 1998

Tokyo Electron Group Credo and Principles on Safety &Health establishedJun. 1999

Safety First policy establishedDec. 1999“Health, Safety, and Environment” added to theManagement Philosophy

TOKYO ELECTRON Environmental and Social Report 2008

Apr. 2000

Environmental accounting introduced

Apr. 2000

Unified safety training system “Safety 2000”
implemented

Dec. 2000

First Tokyo Electron Group environmental reportpublished

Oct. 2001

Environmental training introduced in facilities not yet
certified under ISO 14001

Dec. 2002

Tokyo Electron Group Internal Assessment mutual
auditing by environment or safety representatives fromeach facility started

Oct. 2005

Energy-Conservation Task Force starts activities topromote energy-saving products

May 2006

Tokyo Electron Group Credo and Principles on
Environmental Preservation revised

Oct. 2007

Environmental Steering Committee, the highest-level
environmental function at TEL, launchedOur EHS activities are conducted with respect to three core elements:

safety instructions and messages to be given by a primary employer1
to the related contractors.) We will continue to monitor our EHS

Product EHS, which advances EHS priorities in our products inmanagement system with this extended scope, which checks ourgeneral; Customer-Site EHS, which advances those priorities during

EHS activities more strictly.

and after start-up of our products; and Plant and Office EHS, which

1 Primary employer: According to the revised Industrial Safety and Health Act, aprimary employer means a primary company that arranges for the employees of
its contractors to carry out a part of the company’s work at one single place incooperation with the company’s own employees.

concerns our facilities.
The Tokyo Electron Group companies, in particular TEL’s
manufacturing subsidiaries, started developing and implementing

EHS Risk Management System

environmental management systems based on ISO 14001 in 1997,

At manufacturing subsidiaries of TEL, environmental and safety risks

and obtained ISO 14001 certification.

are estimated based on ISO 14001 and OHSAS 18001 standards forlabor safety and health management systems. These subsidiaries arewarming and climate change, we also established the Environmental

implementing measures to eliminate higher risks first. Also, they are

Steering Committee in October 2007 to intensify and accelerate ourendeavoring to reduce some risks“green” efforts. The Committee is the Group’s highest-level organization

although they are not yet legally required

responsible for our environmental activities (please refer to page 18.)

to do so. We believe it most important
to implement anti-global warming

Tokyo Electron Group’s EHS Promotion System

Highlights

Recognizing the widening necessity of addressing present global

EHS Management

EHS Promotion Systemmeasures in line with the Kyoto Protocol

Global EHS Committee

targets in future EHS risk management.
Our Tohoku Plant was certifiedPlant and Office EHS(EHS activities in each region)

Customer-Site EHS

Product EHS(EHS activities
at customers’ facilities)(EHS activities
for the Group’s products)

ISO 14001-Certified Plants and Offices
Company name(highest-rating) environmentally friendly
office in recognition of its tangible

Label for certified environmentally friendly
activities and performance toward theoffices, granted to the Tohoku Plant

reduction of CO2 emissions.

Plant/Office name Certification dateCertification number

Sagami Plant

December
10, 1997

1110-1997-AE-KOB-RvA Rev.1

The Tokyo Electron Group operates in strict compliance with the law.

Tokyo Electron Tohoku
LimitedTohoku Plant

February
19, 1998

1118-1998-AE-KOB-RvA

We closely track new environmental laws and emissions regulations

Tokyo Electron Kyushu
LimitedKumamoto/Koshi/
Ozu/Saga Plants

March 26,
1998

1120-1998-AE-KOB-RvA

Yamanashi Plant(Fujii/Hosaka district)

May 15,
19981124-1998-AE-KOB-RvA

to legal actions of any kind with regard to environmental accidents,

Miyagi Plant

March 1,
2005

01245-2005-AE-KOB-RvA

violations, fines or complaints.

Yokohama
OfficeJuly 14,2004

EC04J0144

Tokyo Electron PS Limited/Tokyo Electron AT Limited

Tokyo Electron AT Limited

and for some substances have enacted independent standards thatare stricter than legally required. In fiscal 2008, we were not subject

EHS Training
The Tokyo Electron Group offers EHS training based on the policy of

EHS Activities Monitoring System“the necessary training for the necessary people.” Training courses are

In order to increase the effectiveness of our EHS management system,grouped by rank and are open both to Group employees and to employees

we continually increase the level of monitoring that verifies the systemof cooperating companies who work at the Group’s facilities. An EHS

function and results. Monitoring is done from multiple viewpoints

training program is also a required part of the curriculum for new hires.
In 2007, we launched the Company intranet to communicate

within plants and offices, within the Group, or by third parties.

environmental-related
information, such as

many plants and offices, which was instituted in fiscal 2003. In

examples of successful

fiscal 2007, in response to an increasing need to manage chemical

related activities within thesubstances contained in products across the entire supply chain andGroup, messages from top

in compliance with the Japanese Industrial Safety and Health Act

management and meeting

revised in 2006, we added some new audit items to ensure that EHS

materials.

SOCIAL Report

We are especially focusing on the Tokyo Electron Group Internal
Audit, a program of mutual EHS evaluations by representatives of

EHS Report

Tokyo Electron Device
LimitedAbiding by the Law

MANAGEMENT Report

by Iwate Prefecture as a “four-star”

was examined appropriately in cooperation with our suppliers andpartner companies. (The revised law demands the enhancement of

TEL’s intranet site

TOKYO ELECTRON Environmental and Social Report 200817

E H S R e p o rt

EHS Management
EHS Management

The Tokyo Electron Group will go the extra mile for the environment under the slogan“Technology for Eco Life.”

Acceleration of Environmental Activities

Launch of the Environmental Steering Committee
Recognizing the increasing necessity of addressing global warming

Environmental Steering Committee(Launched in October 2007)

and climate change, we established the Environmental Steering
Committee in October 2007 to intensify and accelerate our green

Environmental Steering
Committee

efforts. This highest-level internal organization on environmental
activities is comprised of the executive officer in charge ofdevelopment, and members from the marketing, corporate strategicplanning and corporate communications departments.

Highlights

The Committee has two working teams: the Product Working

Product Working Team

Office/Logistics Working Team

Team and the Office/Logistics Working Team, which explore what
we can and should do for the environment with regard to theGroup’s products as well as our offices and distribution practices,
respectively. Under the slogan of “Technology for Eco Life,” theEnvironmental Steering Committee plans to formulate standards androadmaps in fiscal 2009, and this will be designed to achieve TEL’s

MANAGEMENT Reportenvironmental commitments.
Slogan and logo below were selected from employees’ ideas.

Technology for Eco Life
Tokyo Electron supports a strong global community and strives to achievea society in harmony with the environment.

EHS Report

We are committed to creating an environmentally-benign society together
with our customers by providing advanced technologies and services.

Tokyo Electron’s Commitment

SOCIAL Report18• We aim to develop equipment that enables a 50% reduction—compared to the 2007
levels—of the total environmental impact of new customer factories scheduled forcompletion in 2015 or later.
• We aim to reduce the impact of our business and transportation activities on theenvironment by 50%, by 2015, compared to the 2007 levels.
• We will strive to achieve these commitments in partnership with our stakeholders.

TOKYO ELECTRON Environmental and Social Report 2008

The Tokyo Electron Group has set goals for EHS activities and is promoting those activities
throughout the Group.

Goals and Results for EHS Activities in FY 2008
Action item

EHS
management

Results

EHS internal audit

Perform EHS internal
audit at plants and offices
across the supply chain

Conducted an audit at one site adding a supply
chain-related audit item and made corrections
based on the findings.

○

Energy-saving
equipment

Achieve the TEL
Roadmap1 indicators

Encouraged application to existing equipment○

Product
initiatives forthe environment Measures to reduce
the use of regulated
chemical substancesin equipment

Reduce energy
consumption(1% decrease in CO2emissions per unit ofsales, as based on the Act
Concerning the Rational
Use of Energy)△

Achieved the goal of decreasing CO 2 emissions
per unit of sales by 1% from the fiscal 2007
level

○

Obtained accurate data on domestic logistics
and promoted modal shift○○

Continue to conduct audits

P.17

Develop standards and operate
related activities to achievecommitments under theTechnology for Eco Life slogan

P.20-23

Preparation and response withregard to the initial shipment in
the second half of fiscal 2009

P.24

Develop standards androadmaps, and operate related
activities to achieve theaforementioned commitments
Develop standards and operate
related activities to achieve theaforementioned commitments;
study on transportation systemfor exporting products

P.28

P.25

Waste reduction

Continue zero emission
efforts at manufacturing
plantsAchieved zero emissions at all manufacturing
plants
The recycling rate of the entire Group was ashigh as that of the previous fiscal year○

Continue zero emission efforts
and examine reduction in the
total amount of waste

P.30

Reduction in thenumber of injury
accidents

Reduce the number of
injury accidents by 30%
from the FY 2007 level

Achieved the target by reducing the number of
injury accidents by 40% or more from the fiscal
2007 level○

Target a 25% reduction of
injury accidents in fiscal 2009
from the fiscal 2008 level

P.32

1 TEL Roadmap: Environmental policies and plans for the Group’s products ○ Achieved target △ Achieved 80% of target × Achieved less than 80% of target ー Item for which no goal was set

Environmental Accounting
Scope: Major plants and offices in Japan (in Sapporo, Tohoku, Miyagi, Akasaka, Fuchu, Yokohama, Sagami, Hosaka, Fujii, Amagasaki, Osaka, Saga, Kumamoto, Koshi, and Ozu)
Period covered: April 1, 2007 to March 31, 2008
We conduct environmental accounting according to Environmental Accounting Guidelines 2002 and Environmental Accounting Guidebook II issued by the Japanese Ministry of theEnvironment.

Environmental Protection Costs in FY 2008

(Thousands of yen)

Item

Main initiatives

Capital investment

1. Business area cost

Expense476,881

657,730
346,867

Prevention of air pollution, water pollution, soil pollution, etc.

385,561

1.2 Global environmental costs

Prevention of global warming, protection of the ozone layer, etc.

91,32077,233

1.3 Resource circulation costs

Efficient use of resources, reduction of waste, etc.

0233,6300641,673

2. Upstream/downstream costs

Green purchasing, green procurement, etc.

3. Management activity costs

Environmental education, monitoring and measurement of environmental impact, etc.

4. Research and development costs

22,705219,168

Product R&D, etc.

0

1,741,927

5. Social activity costs

Tree planting and vegetation, supporting of local environmental activities, information disclosure, etc.

038,107

6. Environmental damage costs

Repairing of damage to the natural environment, etc.

00

7. Other costs

Other

0

0

499,586

3,298,605

Total

Economic Benefits of Environmental Protection Activities in FY 2008
Classification of environmental costs

Costreduction(Thousands of yen)
Details

AmountReduced electricity usage (e.g. benefit from suspending new facility-construction plan)-16,484• Water-related benefits

Reduced water usage (e.g. circulating of cooling water)-7,777• Paper-related benefits

Reduced paper usage (e.g. encouragement of duplex copying and use of electronic media)-1,032-2,560• Resource-related benefits

Reduced use of heavy oil and gas• Other benefits

Reduced use of liquid nitrogen and copying toners-9,730• Waste-related benefits

Reduced waste volume

91,636• Benefits related to release into waters and soil

Reduced release into the sewage system

Total

SOCIAL Report• Benefits related to electricity and other energy

EHS Report

1.1 Pollution prevention costs

MANAGEMENT Report

Health andsafetySaving energy

Achieve the TEL Roadmap
indicators

300-mm products: Achieved the fiscal 2008
targets for two products out of six, andworking to achieve 2010 targets
Made progress in conducting survey on
six substances designated under the RoHS
Directive and replacing with alternatives that
do not contain such substances

Page in report

Highlights

Environmental
activities at
each plant orofficeAchievement
Plans and goals for FY 2009 onward
level

Goals for FY 2008

E H S Ac t ivi t y G o a l s a n d R e sul t s /E nvir o n m e n t a l Ac c o u n t in g

EHS Activity Goals and Results /Environmental Accounting-104
53,949TOKYO ELECTRON Environmental and Social Report 200819

E H S R e p o rt

Pr o d u c t - R e l a t e d I ni t i a t ive s
fo r t h e E nvir o n m e n t

Product-Related Initiatives for the Environment
The Tokyo Electron Group works hard to reduce the impact of its products on the environment throughvarious improvement measures, such as reducing energy requirements of our semiconductor and FPD
production equipment and minimizing the use of regulated chemical substances.

Designing Products that have Less Environmental Impact in Use
Our Approach to Reducing the Environmental
Impact of Our Products

matters, reducing the number of parts and processes required,

We believe it is important to promote environmentally conscious

improving the environmental performance of existing equipment.

designs, as we have clearly stated in the Tokyo Electron GroupIn addition, they were encouraged to cover voluntary items such

Credo and Principles on Environmental Preservation. We give top

as reducing the number of processes required for equipment

priority to the provision of energy-saving equipment and to reducing

installation. In the design and development process, we also consider

or finding alternatives for the regulated chemical substances

and implement, where possible, the reduction of required materials

contained in our products.

and the number of processes involved. Progress of the defined goals

reducing the use of processing gases and liquid chemicals, andwill be reviewed in the Group’s mid- and long-term plan.

Highlights
MANAGEMENT Report
EHS Report
SOCIAL Report

20

Organizations for Reducing Environmental Impact
Two working groups are in place to promote our efforts to reduce

Energy-Saving Measures for Products

the environmental impact of our products: the Chemical Substances

We are examining measures to reduce the energy that our products

Steering Team and the Product Working Team. The former works

consume when they are used and have set the following five targets:to reduce or substitute the use of chemical substances subject to(1) reducing energy used by the product itself; (2) reducing energy

applicable regulations in our equipment parts and components. The

used by peripheral devices; (3) managing the product in an energy-

latter was established under the Environmental Steering Committee

saving manner; (4) reducing energy used by the clean room; andin fiscal year 2008. Under the leadership of the Product Working
Team, each business unit has developed a roadmap to reduce their

Approach to Energy Saving of the Products

environmental impact. In preparing the roadmap, business units wererequired to cover the following mandatory items: reducing energy(5) Managing the clean room in an energy-saving manner(planned operation and proper management)(4) Reducing energy used by the clean room

requirements in our products, addressing chemical substance-related
Items in the Environmental Road Map by Each Division(1) R educing the energy requirements
in our products(2) A ddressing chemical substancerelated matters(3) R educing the number of partsand processes required(4) Reducing the use of processing
gases and liquid chemicals(5) Improving the environmental
performance of existing
equipment

Coolingequipment(2) Reducing energy used byperipheral devices

Vacuumpump(1) Reducing energy usedby the product itself(3) Managing the product in an energy-saving manner

TOPICS
Recycling of Replaced Components
In the past, we disposed of faulty equipment components we produced. We opted not torecycle faulty components due to their peculiarities and quality concerns. In order to use
resources more effectively and reduce disposed waste, we have explored ways we couldchange this practice. Now, old components replaced during the equipment warrantee
period are collected and inspected by our Group. If components are found to be reusable orrecyclable, they are refurbished and reused. In shifting to this new policy, we established aquality standard for inspections that requires the same level of inspection for used components
as for new components, and the detection of any noticeable degradation or abrasion, among
others. In addition to resource saving and waste reduction, the revised practice brings anotherbenefit: the results of any repairs undertaken can provide insight into creating longer-lastingproducts and to reduce stock levels and maintenance costs. This collection and recycling
program is currently only available in Japan but will be extended to overseas markets in the
future to achieve further reduction of waste and improved resource consumption.

TOKYO ELECTRON Environmental and Social Report 2008

Flow of Replaced Recycling Process
Repairingequipment failure
Collecting reusable/
recyclable components

Shipped asservice parts

Inspecting
collected components

StoredRepairingcollected components

Quality inspection

Implementing necessary
recycling steps

our products and their supplementary devices (e.g. vacuum pumps

operation and proper management). For energy-saving management

and cooling equipment) consume in reference to the SEMI S23of the clean room, we are required to cooperate with customers

standard, and monitor the consumption of electricity as well as theand facility manufacturers. Such close cooperation will allow us to

consumption of water, dry air, cooling water and exhaust heat, andmake further efforts to reduce the energy consumed by our products

take appropriate measures.

Pr o d u c t - R e l a t e d I ni t i a t ive s
fo r t h e E nvir o n m e n t(5) managing the clean room in an energy-saving manner (planned

while they are in use. In addition, we will identify how much energy

Highlights

We strive to contribute to both the workplace and the global
environment by developing equipment of even higher quality.
Masami Akimoto
Senior Vice President, Deputy General Manager,
Development & Manufacturing DivisionTokyo Electron Limited

to reduce their environmental impact and extend their product life. We
have started to provide this modification service in earnest with thelaunch of a Post-Sales Division this year.

SOCIAL Report

TOKYO ELECTRON Environmental and Social Report 2008

EHS Report

Collaboration among engineers as well as good physicalI have been engaged in development of the Group’s products since I
and mental well-being is needed to take our development
joined the company in 1984. While “environmental consciousness”
capabilities to the next level.
and “global warming prevention” are frequently used phases theseIn pursuit of the development of equipment that is even moredays, concern for the environment has long been a basic element
environmentally-friendly, we need a forum to build a network ofof our product development. Meeting customer needs by producing
engineers,
equipment with shorter wait
times,ELECTRON
low energy consumption,
TOKYO
Environmentalhigher
and Social Report
2008 share experience and expertise, and discuss basic
technologies and research methodologies, in addition to individual
utilization and higher yield is indeed synonymous with reducing the
R&D efforts at each business unit. From an initiative launched lastenvironmental impact of our products.
year, we now hold a quarterly gathering of engineers, enabling us to
For example, reducing the use of liquid chemicals in manufacturinghold in-depth peer-based discussions and utilize the technologicalsemiconductors/FPDs is not only about the environment but also
expertise of other departments. In an increasing number of newabout cost performance and process efficiency. This recognition drove
product development projects, cross-departmental project members
us to make a variety of improvements such as changing our coating
are solicited and selected.
methods to reduce the use of liquid chemicals and recycling used
In tandem with enhancing our R&D capabilities, we are promoting
liquid chemicals with a high collection rate. Such improvements overa better work-life balance for our employees. Good physical andthe years have resulted in higher production efficiency, requiring lessmental health is a powerful enabler of outstanding performance.
energy and resource consumption.
We are particularly working to slash overtime work hours, so far
generating good results. For instance, one department’s monthly
We aim to reduce the environmental impact of both new andaverage overtime work hours has declined by about 60%.
existing products.
Excellent performance of the equipment we develop leads to
We are developing next-generation models of our products inbetter performance for its users and providers and their respective
collaboration with customers to meet extremely high requests fororganizations, and in turn greater profits for the companies. Reliable,
equipment that has less of an impact on the environment. At the samestable equipment can be a helpful partner in customer production
time, we are implementing environmental improvements to existing
activities. Furthermore, it will substantially ease the burden on our
products installed at customer sites. Once shipped from our factory,
Group’s field engineers.
our semiconductor production equipment will be in use for a long
We will continue striving to develop high-quality equipment both intime, generally speaking, for 15 to 20 years. Tens of thousands of units
terms of functionality and environmental performance.
of our equipment are in operation worldwide. We must retrofit them

MANAGEMENT Report

When developing equipment and products, satisfying ourcustomers’ requests for excellent product performanceand reducing the environmental impact of our products are
inseparable objectives.

21

E H S R e p o rt

Pr o d u c t - R e l a t e d I ni t i a t ive s
fo r t h e E nvir o n m e n t

Product-Related Initiatives for the Environment

Preventing Global Warming
Initiative for Coater/Developer
CLEAN TRACK™ LITHIUS Pro™
A coater/developer is used to coat photoresist and develop the

CLEAN TRACK ™ LITHIUS™

CLEAN TRACK ™ LITHIUS Pro™

exposed pattern simultaneously in the lithography process (where
the same photo development technology is applied) in manufacturing
semiconductors. When we developed the CLEAN TRACK LITHIUS
Pro coater/developer by redesigning our 300 mm wafer CLEAN

Highlights

TRACK™ LITHIUS™, we concurrently worked to reduce the

Improvement of Exhaust System of Hot Plate Chambers
Before improvement

After improvement

Chamber

Chamberenvironmental impact of the overall LITHIUS series. Specifically,

Ejectorwe adopted a new exhaust system for hot plate chambers which
directly uses exhaust air from the factory. We previously exhausted
air by using compressed-air powered ejectors. This shift enabled us
to reduce the use of compressed air by 35% or more compared tothe previous system. We also worked to achieve a proper volume

Compressed air
to operate ejectors
Trap tankExhaustair

Exhaustairof nitrogen gas purge in this coater/developer, resulting in at

MANAGEMENT Reportleast a 70% reduction in the use of nitrogen gas. Through these
improvements, the revised models’ energy requirement per unit areaof wafer was reduced by approximately 20%. When developing the
new LITHIUS Pro, we incorporated energy-saving features, suchas introducing an inverter-equipped automatic control system forthe humidifying heater and the freezer within the temperature and

The shift of chamber exhaust system from an ejector-based method to a direct
exhaust method eliminated the use of ejectors and compressed air for ejectors.

Energy Consumption per Unit Area of Wafer(Consumption by the initial model = 1.0)
10.8

humidity controller, and reducing the number of pumps used. As

0.65

a result, LITHIUS Pro requires 32% less electricity than the initial
LITHIUS model. Its energy use per unit area of wafer was alsoslashed by 35% from the existing LITHIUS model. We will continue
to incorporate a greater number of energy efficient designs in all new

Modified LITHIUS

LITHIUS Pro(After improvement)

EHS Report

products and adopt such “green” features for existing models.
lComment from an Employeel

Meeting Expectations to Improve
Energy Efficiency from theDevelopment Stage

Keiichi Yahata
Safety Technology Section, CT System Design Dept.
Tokyo Electron Kyushu Limited

SOCIAL Report

22

LITHIUSIn recent years, our customers have requested equipment with evergreater energy efficiency. As semiconductor production equipment
is high-precision machinery, modifying its design after completionor at a later stage involves significant risk and requires tremendous
effort in terms of risk assessment. This means it is important toconsider energy efficiency in the product development stage.

TOKYO ELECTRON Environmental and Social Report 2008

Initiative for FPD Coater/Developer
A FPD coater/developer is used to apply photoresist on FPD substrates
and develop the exposed pattern. This equipment—which contains
coating, developing, and drying units—becomes increasingly larger
as the substrates it processes expands. Our Exceliner™ is an exampleof this
変更前 type of large model and we aim to reduce its environmental
footprint through a variety of improvements, even during the productconcept development phase. For instance, the scrubber unit for washingsubstrates reuses a maximum of 3,000 cubic meters of pure water used
for rinsing in the pre-washing process. In addition, more than 90%
of its used developing agent is recycled and the coating method for
変更後
photoresist has been changed from spin-coating to slit-coating. In thisway, this equipment now requires more than 90% less photoresist.

Reduce Energy Consumption

Pr o d u c t - R e l a t e d I ni t i a t ive s
fo r t h e E nvir o n m e n t

Modification of Thermal Processing Systems to

Initiative for Single Wafer Deposition System Trias™

Some of our thermal processing systems use exhaust pipe heaters to

A single wafer deposition system is used to form metal and barrier

prevent byproducts and other substances from adhering to the insidefilms by using thermal and plasma energy. This system adopts asurface of the chamber. The electricity consumed by the pipe heaters

chemical vapor deposition (CVD) process, whereby a gaseous mixture

has been reduced by 40 to 50% by installing PLENO heaters whichof reactive chemicals is supplied in the chamber and then heated. As ahave a higher-insulation performance than previously used silicon

result of this chemical reaction, thin layers are formed and deposited.
Previously, cooling water was supplied to the system from a

PTFE,* which means this unit is cleaner, suffers little degradation

dedicated temperature control unit installed outside the system.

and thus has a probable longer product life.

However, we noted that this external device accounted for a large
portion of the overall environmental impact of the system and*P TFE: polytetrafluoroethylene (PTFE) is a
fluorocarbon resin consisting of fluorineand carbon.

consulted with our customers to find a solution to reduce its

Highlights

rubber pipe heaters. The PLENO heaters are made from porous

energy requirements. We learned that the cooling water systemsof customers’ factories can be directly supplied to a single wafer
deposition system in a consistent manner. We therefore decided toElectricity Use at Different Temperatures
Previous type
PLENO heater

100

method which does not need a separate temperature control unit.
This shift led to a reduction in energy use and installation space. As
proof of the success of this measure, we received an award from acustomer in recognition of our environmental initiative.
Discontinue Use of a Dedicated Chiller

51

Temperature
control unit

37
19
200°C

ALPHA (α)-303i to be modified

Beforeimprovement

100°C

Note: Power use of the previous type at
200°C = 100

lComment from an Employeel

Shift from Spin Coating to Slit Coating

Spin coating

Required photoresist
per unit area

1

Creating Environmentally Friendly
Products through Extensive
Discussions with Customers

Mitsumasa Kubota

The elimination of the temperature control unit is the result ofSlit coating

extensive discussions with customers and many attempts to

0.09

improve the equipment. We will continue striving to develop
environmentally friendly products and new green technologies.

TOKYO ELECTRON Environmental and Social Report 2008

SOCIAL Report

Second Group, SD Design Engineering Dept.
Tokyo Electron AT Limited
After
improvement

EHS Report

Cooling water is
supplied directly fromthe customer’s plant

After
improvement

Beforeimprovement

Cooling water is
supplied from the customer’splant to the temperature
control unit

MANAGEMENT Report

modify the system to be suitable for the new cooling water supply
PLENO heater23

E H S R e p o rt

Pr o d u c t - R e l a t e d I ni t i a t ive s
fo r t h e E nvir o n m e n t

Product-Related Initiatives for the Environment

Management of Chemical Substances
Our Activities toward Reducing the Use ofRegulated Chemical Substances in Products

intended to regulate the use of chemical substances in electronic

Against the backdrop of growing concerns over the impact thatGroup has already taken the necessary actions in response to thisharmful substances contained in parts and materials have on theregulation, which requires compliance with the following two rules.

environment and eco system, many countries have worked to regulate

1. Product Labelinginformation products sold on the Chinese market. The Tokyo Electron

Highlights

the use of such substances in automobiles and electrical products.

Products containing chemical substances regulated under China’s

The Tokyo Electron Group is making appropriate responses to these
movements. For example, with regard to the RoHS Directive1 that took

RoHS must carry a label showing the period during which theeffect in July 2006, we issued a written statement demonstrating thatTokyo Electron Group generally sets this period at 25 years.

the semiconductor and FPD production equipment manufactured by

2. Disclosure of Information on the Use of Chemical Substances

product can be used in an environmentally safe manner. The

our Group falls outside the scope of the Directive because they areInformation on the use of products containing regulated chemicallarge-scale stationary industrial tools, to which the Directive does notsubstances should be disclosed in the product’s instruction

apply. This statement also specifies the rationales of our judgment.
We have already met all requirements of China’s RoHS2, which

manual and similar documents in the Chinese language. The
Tokyo Electron Group strictly complies with this rule.

became effective in March 2007. In order to meet the regulatory
a Chemical Substances Steering Team, which comprises representatives

System to Reduce the Use of Regulated
Chemical Substancesfrom TEL’s headquarters and its manufacturing subsidiaries. The team

The Tokyo Electron Group operates a chemical substancescollects and shares information and investigates the use of regulated

management system based on the principle of not using, purchasingchemical substances in our products and advises us, in cooperation withor selling parts containing regulated chemical substances at more thanour suppliers, when to replace products containing these substances

regulatory specified levels. This system is used to register and refer towith alternatives. Despite the fact that our semiconductor/FPD

information on the use of chemical substances in various parts. This

production equipment is not regulated by the EU’s RoHS, we voluntarilysystem allows us to check with ease whether parts to be used in ourdeveloped a timetable in fiscal year 2007 to phase out the use of the six

products contain regulated chemical substances or not and controls

regulated substances used in our products (excluding certain products).

the manufacture or shipment of products containing these substances.

requirements of relevant countries in a prompt manner, we established

MANAGEMENT Report

We are scheduled to start shipping products that meet EU RoHS

EHS Report

standards in stages from the second half of fiscal year 2009.

Future Regulations on Chemical Substances

1 RoHS: Restriction of the use of certain Hazardous Substances in Electrical andElectronic Equipment

In Europe, under regulations such as REACH1 (which mandates

2 China’s RoHS: Officially called “Management Methods for the Prevention andControl of Pollution from Electronics Information Products”

Chemical Substances to be ReducedFirst Priority
Cadmium
Hexavalent chromium
Lead
Mercury
PBBs
PBDEs

Pigments, stabilizers, and resins
Chrome plating
Solders, paints, electrical wire coating, and free-cutting metal
Batteries and fluorescent lamps
Resin parts
Resin parts

SOCIAL Report

Second Priority
Substances designated as Level A substances in JIG*
(We have already implemented measures for many of these substances.)* T he Joint Industry Guide for Material Composition Declaration for Electronic Products(JIG) was prepared by Japanese, American and European private trade associations.
The Guide lists the chemical substances for which conservation measures should be
implemented. It classifies the substances into Level A and Level B: 16 substances are listed
as Level A substances, including cadmium, hexavalent chromium, lead, mercury, PBBs, and
PBDEs. More than 400 substances are listed as Level B substances.

Response to China’s RoHS
China’s RoHS, which became effective on February 28, 2007, is

24

TOKYO ELECTRON Environmental and Social Report 2008

safety evaluations of almost all chemical substances sold on themarket and registration of the relevant information), the new Batteries
Directives2 and the PFOS3 Directives, companies will be increasingly
required to fulfill their responsibilities as a manufacturer and follow the
precautionary principle. All Tokyo Electron Group departments, fromthose engaged in product development and design, manufacturing,materials procurement, quality assurance, and environment and safety
are making concerted efforts to comply with these regulations. We will
also explore optimal management of chemical substances by joining
the activities of JAMP4 and other forums.
1 REACH: Registration, Evaluation, Authorization and Restriction of Chemicals
2 The EU’s new Batteries Directive regulates the disposal of batteries which arecollected from used electronic and electric devices in compliance with WEEE. It also
requires labeling with a designated recycling mark to facilitate collection and recycling.
3 Perfluorooctanesulfonic acid (PFOS) is used as a water repellent and waterproof
coating and in producing flame-resistant greases and oils. The EU’s directive,
effective June 27, 2008, prohibits the use of PFOS in quantities larger than those
designated, with some exceptions.
4 JAMP: Joint Article Management Promotion-consortiumAt the Tokyo Electron Group, implementing environmental measures in transportation processes is a
top priority. We are committed to reducing our environmental impact and promoting the effective useof energy and resources in our transportation activities.
Green Packaging

In April 2006, Japan’s Act Concerning the Rational Use of Energy

Products of the Tokyo Electron Group are precision machines. Because(Energy Saving Act) was revised and regulations on logistics wereof this nature, delivering our products requires special packaging so as

strengthened with the aim of reducing global warming. Accordingly,

to maintain their precise and clean condition. We previously wrapped

there are now increasing demands to reduce the environmental

our products two or three times with transparent plastic. But there was

impact of logistics. In response, the Tokyo Electron Group has beena downside to this packaging method: wrapping was rather difficult andactively reducing the environmental impact caused by the logistics

created unnecessary space between the packaging material and theof its products. For example, we introduced low emission trucks to

products. To address these problems, our coater/developer department

transport our products

studied and improved our packaging process. In the revised packaging

and started to recycle

process, we cover products to be shipped with a pair of specially orderedunused lumber fromsack-shaped wrapping materials from the top and bottom. This shift has

packaging frames. We

allowed us to overcome the aforementioned shortcomings and reduce

also give top priority to

the use of packaging material by 30%. It also involves fewer activities indriving safety in deliveringhigh places, resulting in a more efficient packaging process that requires

products to customers.

three times fewer man-hours. We intend to make further improvements
to reduce the environmental impact and man-hours.
Recycling lumber from packaging frames

Previous packaging

Environmental Impact of Logistics

Revised packaging

ing
app
roll
WrWr
ingrollapp

30 million ton-kilos or more a year as specified shippers. They arerequested to reduce the CO2 emissions resulting from transportationof their cargo.

From
Fromthethebottom
bottomIn fiscal year 2007, TEL was designated a specified shipper under
the Energy Saving Act as its non-consolidated freight transportation
distance), calculated based on a given loading ratio, exceeded 30
million ton-kilos. In fiscal year 2008, we successfully reduced our

From
Fromthethetoptop
Wrapping roll
Wrapping roll(weight of major products transported multiplied by their transportation

MANAGEMENT Report

The Revised Energy Saving Act designates shippers who transport

Highlights

Our Approach to Environment-Friendly Logistics

E nvir o n m e n t a l I n i t i a t ive s in Tr a n s p o r t a t i o n

Environmental Initiatives in Transportation

freight transportation below the 30 million ton-kilos threshold as aresult of our efforts to collect cargo weight data more precisely byderiving relevant information from design data. We thus applied to bede-listed as a specified shipper under the Energy Saving Act.

lComment from an Employeel

In fiscal year 2008, TEL’s transportation activities in Japanemitted 4,712 tons of CO2 (non-consolidated). During this fiscal year,
the cross-departmental Office/Logistics Working Team was launched

Active Promotion of
Modal Shift

EHS Reportmeasuring the gross weights of about 95% of our major products andunder the Environmental Steering Committee to study future steps
to reduce the environmental impact. Key focuses of this working
team include the promotion of a modal shift* such as increasing

Logistics System Division 1
Tokyo Electron BP Limited

the majority of our exports are transported by aircraft in accordance

In fiscal year 2008, we began to use ships rather than trucks to transportwith customer instructions, which generates an estimated 20-foldmore CO2 emissions than domestic land or sea transportation. We

our products. About 150 trucks were replaced by marine transportation

will work to find further ways to increase exports by ship in order tosaved by this modal shift. We will work to make further progress in thisachieve our emission reduction targets.

effort. In parallel, we will work to reduce the environmental impact of*Modal shift: A shift from conventional freight transportation by truck to marine andrail transportation for mass transport

for two routes. An estimated 93 metric tons of CO2 emissions has been

SOCIAL Report

the use of vessels for product transportation in Japan. At present,

Kiyoshi Shimizu

packaging material and other related elements.

TOKYO ELECTRON Environmental and Social Report 200825

E nvir o n m e n t a l I n i t i a t ive s o f O u r S u p p li e r s

E H S R e p o rt

Environmental Initiatives of Our Suppliers
The Tokyo Electron Group collaborates with its suppliers to reduce the environmental impact of
its products.
The following describes initiatives taken by two of our suppliers to reduce their environmental impact.

Environmental Initiatives of Our Suppliers—Fujikin Incorporated
Fujikin Incorporated

more compact design. Compared with the

Fujikin Incorporated and its affiliates are leading manufacturers

existing 1.5” IGS, this new model achieves aof valves and flow control systems. Since its foundation in 1930,

reduction of about 30% in installation space

Fujikin has offered products that are used in a wide range ofand weight. When combined with Fujikin’s

applications, such as aerospace equipment, ocean development,

FCS-P (Flow Control System-P) it enables anchemical processes and nuclear power plants. Fujikin was grantedeven smaller equipment footprint.

Fujikin’s FCS-P

the Manufacturers’ Award for four straight years in recognition of its
technological excellence. The Tokyo Electron Group sources valves,(2) Going Green in Business Activities

connectors and flow control systems from Fujikin.

Fujikin is working to reduce its electricity use and waste generation.

Highlights

Fujikin provides outstanding service

It has installed energy-efficient FFU (fine filter unit) motors in its

through its technical support units locatedclean rooms, with the new motors requiring 20% less electricity

at our manufacturing sites as well asthan those previously used. Fujikin also achieves higher energy

customer service centers worldwide.

and process efficiencies by streamlining the layout of work spaces.
In addition, redundant packaging has been eliminated to reduce

Precision valves forsemiconductor manufacturing*

resource consumption.

MANAGEMENT Report* In semiconductor/FPD production equipment,
valves are used to control trace gases precisely
and their contamination with even minuteparticles can lead to extensive problems. Fujikin
inspects every valve to detect any leakage orparticle contamination in order to maintain thehigh quality of its products.

(3) Sturgeon Farming
Fujikin started raising sturgeon in 1989 as part of its efforts to launcha biotechnology business. In 1992, Fujikin became the first private
Super clean room

Environmental Management System

sector company to artificially cultivate this endangered fish. Sturgeon
farming has become a successful commercial business, and Fujikin
now sells caviar on the market. Fujikin’s sturgeon farming facility

Fujikin operates with an environmental philosophy of, “preserve ouruses 800 tons of water daily,

beautiful planet, be kind to people, cherish our products, be strict

which is continuously recycled

about our work, be passionate about ourselves, and enjoy our lives.”

using a water circulation system.

It also promotes group-wide environmental activities through its
Environmental Security, and Safety Committees, at its headquarters,

EHS Report

offices and plants. Fujikin’s Tsukuba Research Plant has been ISO
14001 certified since September 2002. Fujikin also implements
programs to encourage its employees to pass the Certification
Test for Environmental Specialists (Eco Test), become certified
as high pressure gas managers, and obtain other environmental
qualifications.

Fujikin technology can be foundwherever something is flowing

Environmental Activities

Yoshihiro Tsuchiya

Fujikin is engaged in a variety of environmental activities, including:

SOCIAL Report(1) Development of the 1.125” IGS (Integrated Gas System)
The IGS has become the most commonly used system for gas flow

Chairman of the Environmental Security,
and Safety Practice Committee
Tsukuba Research Plant
Fujikin Incorporated

units for semiconductor/FPD production

The manufacturing process is the most energy-intensive stage in theequipment. While standard IGS-based

life of our products. We therefore give high priority to improving thegas flow units are lighter and smaller

efficiency of our clean rooms. To meet customer expectations, we strive

than previous models using gas panels,
Comparison between 1.5” IGS
and 1.125” IGS

26

Sturgeon at Fujijkin’s
aquaculture facility

Fujikin’s newly developed 1.125” IGS
has attained an even lighter weight andTOKYO ELECTRON Environmental and Social Report 2008

to offer products manufactured in an environmentally friendly manner, ataffordable prices and with a short delivery period.

Environmental Initiatives of Our Suppliers—Newtech Corporation
Environmental Activities

Newtech Corporation (Newtech) has maintained a working

Newtech takes various steps for the preservation of the environment.

relationship with the Tokyo Electron Group since their foundation

For instance, the company began using different washing equipmentin 1976. TEL sources assembly (Assy*) components (harnesses,

to address concerns over the use of CFCs, which have an adverse

boards, units, etc.) for our etch systems, single wafer deposition

effect on the ozone layer. Newtech also strives to reduce use of

systems, test systems, and FPD plasma etch/ash systems

resources. For example, recycling cable caps and packaging plastic

manufactured in our Yamanashi Plant from Newtech, which is based

bags in cooperation with companies in charge of the next processin Kai City, Yamanashi Prefecture. The company procures parts,of the supply chain. This improvement was based on an idea

manufactures and inspects

from an employee offered through an internal program set up tosuch Assy components forsolicit employees’ insights and ideas for improvement. Electricity

our Group.

consumption is checked hourly and the temperature setting of air
conditioners is adjusted accordingly. Other major activities include*A ssy: Abbreviation of assembly. Assycomponents refer to both individual
parts and multi-component parts.

neighborhood cleanups and fundraising campaigns for disaster relief.

Manufacturing process at Newtech

Quality Improvement Activities
Newtech’s quality control goal is toprevent any nonconforming products fromTo ensure its products are RoHS compliant, Newtech began

being made available externally. In fiscal

reviewing about 3,500 components (which are grouped by Assy

year 2008, the company achieved thistype for this purpose) in the second half of 2006 using a check list

goal with regard to etch systems supplied

prepared by the Japan Green Procurement Survey Standardization

to our Group, attributed by higher usage of jigs* in assembly andInitiative (JGPSSI). If supplier data was not available, Newtech usedinspection processes, as well as rigorous inspection and assessment ofTokyo Electron Group’s analytical equipment to confirm the status.

components by following a quality control process chart. The company

In order to achieve lead-free products, Newtech sought support

also encourages its staff to take national-level technical skill tests. As afor the assessment of 1000-cycle reliability tests from external

result, most factory workers at Newtech hold public qualifications, suchparties, such as an industrial technology center operated by the local

as electronic circuit connection engineer certification and vocational

prefectural government. The company also confirmed patent status

training provider status.

Inspecting cables

Newtech also works to ensure all employees have regular physical

Additionally, Newtech installed additional facilities and appointed full-exams, as they believe that their employees’ well-being is an importanttime staff responsible for RoHS compliance.

element of quality production. The high quality of Newtech products

As a result, the RoHS-related

Temperature cycling test
(N-base R3-7)

June 2008. Applicable products

underpinned by these efforts was recognized with an award from theTokyo Electron Group.

EHS Reportwith regard to this technology to manufacture lead-free components.

MANAGEMENT ReportCompliance with the RoHS Directive

survey was nearly complete as ofHighlights

Newtech Corporation

E nvir o n m e n t a l I n i t i a t ive s o f O u r S u p p li e r s

Recyclable cable caps

*A jig is a device used to instruct and guide the locations of tools during
manufacturing operations

are labeled with yellow stickers
and stored in a separate location.

Yoshihiro Hiraga
President & CEO
Newtech Corporation

Temperature cycling test

The Tokyo Electron Group has been a client for more than 30 years. We
will continue our efforts to meet the Group’s environmental, quality, cost,delivery time and other requirements. While we have traditionally supplied
TEL’s Yamanashi Plant, we are currently gearing up to provide our
products for the company’s new Miyagi Plant as well.

TOKYO ELECTRON Environmental and Social Report 2008

SOCIAL Report

Great agility and flexibility
is our strength

Dedicated storage cabinet for
RoHS-compliant components

27

E H S R e p o rt

Pl a n t a n d O f fi c e I ni t i a t ive s
fo r t h e E nvir o n m e n t

Plant and Office Initiatives for the Environment
The Tokyo Electron Group is implementing aggressive measures to reduce waste, saveresources and prevent global warming. This section highlights environmental activities at
our manufacturing plants and offices.
Input-Output

Input

Details of Total Environmental Impact
The figures on the right indicate the material flow at the Tokyo

Electricity 270.15 MkWh

Electron Group’s manufacturing plants and offices.

Gas

The Group’s environmental impact mainly stems from the processof evaluating products. This is because we evaluate our products
using electricity and a range of gases and chemicals to simulate theactual semiconductor manufacturing process.

Fuel2,613 kl(-0.3%)

Water

1,180 km3(+1.8%)

Chemical products 12.4 t(-37.4%)337 t(-10.7%)(Regulated under the PRTR Law
as Type I chemical products)

Comparison
FY 2008 with FY 2007(+2.4%)

Total product shipment 27,329 t (+0.2%)

1,478 km3 (+21.8%)

Paper (copy paper)

113,169 t-CO2 (+2.2%)

CO2Tokyo ElectronGroup

12.1 t (+1.6%)

NOx(Domestic and overseas
plants and offices)

Wastewater

1,170 km3 (+1.8%)

Waste

12,312 t (-20.5%)

Recycled amount 11,945 t (-20.7%)
Amount of waste simply incinerated
and disposed of in landfills
366 t (-11.6%)

Highlights

Preventing Global Warming
Reducing Energy Consumption
Our Group is committed to reducing energy use in compliance with

Electricity Consumption
OverseasJapan(100,000 kWh)the Energy Saving Act. Our plants and offices are actively reducing
their energy consumption by setting specific targets calling for

MANAGEMENT Reportenergy efficient use of lighting and OA machines, and appropriate

150

126

192

165

temperature control of air conditioners. We will intensify our efforts
to meet our commitment on environmental activities.
2,181

2,345

2,396

2,472

Heavy Oil and
Kerosene Consumption
Kerosene
Heavy Oil(kl)

In fiscal year 2008, we achieved the target of reducing CO2 emissions

0

from energy use per unit sales by 1% from the previous year,1

Gas (overseas)Gas (in Japan)
LPG (in Japan)(1,000 m3)

372
1,062

942

1,146

1,014

154
1,169
994

2,602

946
1,828

04 05 06 07 08 (FY)0although our total emissions of CO2 from energy consumption
our energy-saving measures.

Gas Consumption

99

1,838

1,665 1,604

CO2 Emissions from Energy Consumption

increased due to production growth. We will continue to improve on

658

1,444

0

58

738

56

838

110

113

131

04 05 06 07 08 (FY)
04 05 06 07 08(FY)(Plants in Japan and overseas)

Reducing the Use of Greenhouse Gases otherthan CO2EHS Report

We also began to calculate our emissions at overseas sites by

We use perfluorocarbons (PFCs) and sulfur hexfluoride (SF6), which

applying energy coefficients used in the Survey Report on Estimated
CO2 Emission Factors of the Power Sector of Major Countries (Juneare greenhouse gases, in dry etching, cleaning and other processes

2006) by the Japan Electrical Manufacturers' Association (JEMA).

In fiscal year 2008, we used 10,610 tons of greenhouse gases(as CO2 equivalent), which is substantially smaller than the fiscal

CO 2 Emissions from Energy Consumption
CO2 emissions (in Japan)(t-CO2)CO2 emissions (overseas)(%)

Energy use per unit of sales in comparison with the previous fiscal year1
Energy use per unit sales2
192.1
7,405 6,449 7,335

SOCIAL Report

104.4

during process development and process evaluation.

year 2007 level (21,006 tons). This was mainly due to a considerable
decrease in the volume of SF6 used for product development andevaluation at the Yamanashi Plant.
Greenhouse Gas Consumption

150.8(t-CO2)

100.1
96.1
92.1
87.0 90.8
79.3
78.4
105,834
52,456
102,977
94,009 95,486 95,487
65,81750,488104,246
104,11084,76122.5 20.7 18.0 16.4
16.4 13.0 12.5
11.1 16.7 14.9 11.7

0

Other

SF6
PFCs
HFCs

89.3

’98

’99

’00

’01

’02

’03

’04

’05

’06

’07

’08

(Plants in Japan and overseas)

2 Energy use per unit sales=Energy use/ SalesTOKYO ELECTRON Environmental and Social Report 2008

11

3,106

56
19

(FY)

0

30

13,86318

6,740

1 Comparison with the previous fiscal year
= per-unit energy use in FY 2008/ per-unit
energy use in FY 2007

28

OutputComparison
FY 2008 with FY 2007

4,350

4,681
6,682

1,856
1,468

1,284
1,140

’03

’04

6,297 784
322

’05

3,236
1,620

’06

3,506

3,204

3,607

3,045

’07

’08

(FY)

(Plants in Japan)Pl a n t a n d O f fi c e I ni t i a t ive s
fo r t h e E nvir o n m e n t

Resource Conservation
Our Approach to Resource Conservation

about 10%, or about 9.7 million sheets, from the previous year. In

We are working to minimize our use of resources. Specifically, we

addition to reducing paper consumption, we are working to conserve

are reducing the use and purchase of copy paper and stationery andnatural resources through efforts such as using recycled paper andimplementing green procurement practices giving preference tointroducing bamboo-mixed paper cups.

environmentally-conscious products.

We will continue to reduce the use of copy paper and minimize

We have replaced printer toner cartridges with cartridges madefrom recycled materials and cooperate with the manufacturers in

paper-based records and accounting slips in order to achieve further
reductions in our total paper consumption.

the recovery of end-of-life cartridges. At some offices, we have

Efforts to Reduce the Use of Water

longer needed can be used by other departments.

At our manufacturing plants, various measures are underway toHighlights

established an intranet-based system, under which stationery no

reduce the use of water. For example, the plants have installed a

Efforts to Reduce the Use of Paper

water re-circulating system to reuse cooling water. They have also

We are making a group-wide effort to reduce paper consumption.

installed automatic faucets in restrooms and other facilities. These

Our employees are encouraged to practice duplex copying, copy attouch-free automatic faucets prevent water waste by automaticallya reduced size and digitize information and internal circulars. As ashutting off the supply when the user’s hands are removed from theresult, the Group’s total use of copy paper in fiscal year 2008 fell by

sensor range.
Water Consumption(1,000 m3)

Office facilities
Manufacturing plants

Overseas use
Groundwater
Tap waterIndustrial water

18,30018,61789,067

77,16818,18469,45017,41776,80016,03869,814

16,13577,992

13,438

67
146

119

89
527

445

391

290

325

332

’98

’99

’00

88
62

436

388

474

390

430

’01

’02

107
64

70
106

115
92

111
22
599

486

437

506

415

357

391

382

429

’03

’04

’05

’06

’07

70,936

0

48

2

599

MANAGEMENT Report

Copy Paper Consumption(1,000 sheets)

531

0

’03

’04

’05

’06

’07

’08 (FY)(Business sites in Japan)’08 (FY)(Business sites in Japan and overseas)

TOPICSEHS Report’02

Donating PCs to Industrial High Schools
Presenting the donation
certificate at the ceremony*S EMICON Japan:
World-class expositionof semiconductor andelectronics equipment
and materials

TOKYO ELECTRON Environmental and Social Report 2008

SOCIAL Report

The Tokyo Electron Group is a partner in the Aizu Craftsmanship Training
Project. This project aims to train the future talent who will support
semiconductor and other manufacturing sectors in the Aizu area of
Fukushima Prefecture. We donated 10 PCs to each of the project’s
member high schools, Aizu Industrial High School and Kitakata Industrial
High School. Students from the two schools became the first high schoolparticipants of SEMICON Japan* in 2007 with tools they developed
themselves. The donated computers were used by our field engineers. We
presented the donation certificate at a ceremony held at Aizu Industrial
High School on January 25, 2008, which was attended by more than 100
students, teachers and related parties.

29

E H S R e p o rt

Pl a n t a n d O f fi c e I ni t i a t ive s
fo r t h e E nvir o n m e n t

Plant and Office Initiatives for the Environment

Waste Reduction and Recycling
Our Approach to Waste Reduction and Recycling

achieved a recycling rate of 97.0% in fiscal year 2008 and 97.3%

The Tokyo Electron Group strives to reduce and recycle waste.

in fiscal year 2007. We are also focusing on reducing overall waste

We work according to a firm policy to minimize waste first andgenerated, as well as handling liquid waste by installing liquid

foremost, but if waste is generated it should be recycled to thewaste treatment facilities.

greatest extent possible, and unrecyclable waste should be disposed

Breakdown of Waste Generated

of in a proper manner.

Liquid waste from chemicals used in the product development andIn recent years, landfill costs have surged due to site shortages.

Highlights

This means that waste reduction also leads to cost reduction.

evaluation processes accounts for the largest percentage of waste

We separate recyclable waste from non-recyclables, use newgenerated by the Group. At present, most liquid waste is recycled.

manufacturing processes which do not involve waste generation,

Thanks to the aforementioned treatment of liquid waste by in-housemanage the qualifications of contract waste disposal companies andfacilities, we were able to achieve a reduction of 20% in the total

periodically review final waste disposal practices.

waste (including

Breakdown of Waste (%)

waste recycled) in

MANAGEMENT Report

Waste Generation and Recycling Ratefiscal year 2008,1％

In fiscal year 1999, the Tokyo Electron Group set a target of

58% of which is

4％

increasing the entire Group’s average recycling rate to 95% byliquid waste, down

7％

fiscal year 2006. As a result of efforts to attain this target, wefrom 71% in fiscal

9％

8％

58％

year 2007.
13％

Recycling Rate and Generation of Waste（t）

Target: Increase the recycling rate
to 95% by FY 2006
3,657

3,938

3,189 3,179

77.4

49.7

96.4

97.3

97.0

（%）

93.1

Zero Emissions

3,268
69.7

55.2

96.1

Liquid waste
Metallic/product waste
Plastics
Paper
Wood scrap andpackaging materials
Drink containers
Other

We define plants where less than 2% of waste generated by theGeneration of waste(Incinerated and landfilled)
Recycling rate

59.9

plant is incinerated or put into landfills as “zero emission plants” andencourage all plants to achieve zero emissions. In fiscal year 2008,

847

EHS Report

0

’99

’00

’01

’02

’03

’04

431

469

414

366

’05

’06

’07

’08

0
(FY)

zero emissions. Our next step is to achieve zero emissions at our
office facilities.

(Plants in Japan)

TOPICS

Collection and Donation of
Pop Can Tabs

Recycling Rate of Waste
PlantsOur offices and plants are conducting avariety of programs to promote effective

SOCIAL Reportuse of waste. For example, our Sagami
Plant participated in a pop can tab
collection program in November 2007
run by a local association of corporate

Recycling rate

Tohoku Plant

98.3%

Miyagi (Matsushima) Plant

99.7%

Sagami Plant

99.5%

Yamanashi Plant (Hosaka district)

99.9%

Yamanashi Plant (Fujii district)

99.8%

Kansai Technology Center

100%

Saga Plant

99.9%

collected tabs. With the resulting funds,

Koshi Plant

100%

the association donated wheelchairs to

Ozu Plant

100%

executives and donated 6.5 kg ofsocial welfare facilities.

30

all our manufacturing plants strived to attain this goal, and achieved

Document to prove thereceipt of pop can tabs

TOKYO ELECTRON Environmental and Social Report 2008

Note: R ate of recycling of industrial waste (including industrial waste subject tospecial control)Pl a n t a n d O f fi c e I ni t i a t ive s
fo r t h e E nvir o n m e n t

Management of Chemical Substances
Our Approach to the Management of Chemical
Substances
The Tokyo Electron Group uses chemical substances mainly in

Handling of Substances Regulated as Class I
Designated Chemical Substances under the PRTR Act(kg)

developing and manufacturing products. When developing products,759

we sometimes adopt new chemical substances that have not been

4,558

used before, or use chemical substances in a way that is different

1,980

from their traditional usage. In these cases, we look closely at the

3,690

development facilities and methods, assess the environmental andoperational risks associated with the use of the substances, and

1,439

4,000

’03

’04

1,221
4,118

5,021

9,844

4,811
6,353

2,108
1,359

577

3,553
9,144

4,578

3,962

2,800

’05

’06

’07

Note: Data for fiscal year 2003 was calculated in metric tons

’08

(FY)

(Plants in Japan)

are also replacing dangerous and harmful chemicals used in the
manufacturing process with safer substances.

Material Balance of Chemical Substances
Regulated under the PRTR Act

Highlights

implement necessary measures before using the substances. We

0

Other
XyleneHydrogen fluoride andits water soluble salts
Ethylene glycol

Compliance with the PRTR* Act
Released into the air: Release into water:
0 kg/year
0 kg/year

According to the provisions of the Act on Confirmation, etc.
of Release Amounts of Specific Chemical Substances in the
Thereof (PRTR Act), we rigorously control the specific chemical
substances regulated under the act and identify the use andTEL

Handled

12,450 kg/year

emissions of these substances on a continuous basis. Among the

Products

73 kg/year

Recycled: 3,911 kg/year

substances regulated under the PRTR Act, we use large amountsof hydrogen fluoride, mainly for cleaning test wafers. The hydrogen

Waste:
5,986 kg/year

On-site landfill: Removed:
0 kg/year
2,471 kg/year

fluoride waste is disposed of by an external company or it isTransferred to sewage: 9 kg/year

disposed of in an approved manner within our premises. Ethylene

PCB Storage

regulated substance. TEL recycles almost all ethylene glycol we use.

Based on the Law Concerning Special Measures against PCB

We will continue to properly manage all risks associated with the use

Waste, we report on the storage and disposal of waste containingof chemical substances.

polychlorinated biphenyl (PCB) to the governor of the prefecture* P RTR: Pollutant Release and Transfer Register. Under the PRTR system, the useof chemical substances that may be hazardous to human health and the ecosystem,
their release into the environment, and transfer (contained in waste) outside of thebusiness premises are identified, tabulated and disclosed.

on an annual basis. The Tokyo Electron Group presently stores two
waste transformers and four waste capacitors that contain PCB in astrict and secure manner.

TOPICSEHS Report

glycol, used as a refrigerant for cooling water, is another heavily used

MANAGEMENT Report

Environment and Promotion of Improvements to the Management

Prevention of Chemical Pollution

SOCIAL Report

At our Kansai Technology Center in Amagasaki City, Hyogo, we properly
manage various types of chemicals used to develop and evaluate products.
At the same time, we also ensure that appropriate steps are taken to prevent
air and water pollution. The Center has periodically reported its wastewater
data to Amagasaki City for the past five years (the city ordinance required
more than nine such reports). Wastewater released from the Center has
consistently met the applicable municipal standard. In February 2007,
we were recognized by the City as an office with excellent wastewater
management. We will continue to manage and control chemical substances,including proper monitoring of wastewater discharge.

Award reception
and the certification
plate granted forbeing an office withexcellent wastewater
management

TOKYO ELECTRON Environmental and Social Report 200831

E H S R e p o rt

Health and Safety
Health and Safety

The Tokyo Electron Group promotes good health and safety for all who are involved in our business.
We believe effective health and safety management is one of our responsibilities to society and an
important element of our operations.
For the Safety of All

Preventing Accidents

The Tokyo Electron Group places great emphasis on the health andIn fiscal year 2008, while sales and shipment of products were

safety of customers, employees and anybody else involved in ourincreasing, the Tokyo Electron Group saw at least a 40% decline inbusiness. Ensuring a safe workplace, safe products and healthy lives

the number of injury accidents (excluding minor accidents) fromfor our stakeholders is part of our responsibility to society.

the previous year, achieving the goal of a 33% reduction from theBased on this belief, we provided safety training seminars for2000 level. This dramatic reduction was made possible thanks tomanagers from October 2006 to March 2008. A total of 55 sessions

our global safety management program, which was previously only

were held at 12 plants and offices in Japan, in which 818 managers

operated in Japan. We particularly focused on safe installation of ourof our Group participated.

products in factories of new customers in Asia. As a result, far fewer

Highlights

The training program started with a video message from top

injury accidents occurred during installation or maintenance work.

management, moved on to a lecture on human factors in accidents,

Other contributors to the reduced injury rate were the development

analysis of actual accident cases and video-based learning on theof original safety tools, improvement of safety training programs

obligation to maintain safety. It wrapped up with a presentation by

and product design changes to reduce work in high places andeach participant on their safety action plans. A great deal of positive

heavy lifting. We are planning to take further steps to reduce injury

feedback was given in the post-seminar survey, with comments

accidents. In addition, from the fiscal year 2008 data, we haveincluding, “The best training program ever;” “From now on, I would

begun to calculate the frequency of occupational accidents based onlike to practice what I learned in the program;” “I was able to follow

the number of accidents resulting in one or more full-day absence

the course easily because the example cases were familiar;” andin Japan.

“The seminar made me

MANAGEMENT Report

recognize that I am thesteward of my group

Frequency of Occupational Accidents and Number of Injury Accidents(Number of
injury accidents)

members’ safety.”

1.79

48
33
Safety Seminar for Managers
0(Frequency)

1.77

1.78

1.85

41

37

43

39

1.90

47

1.83

1.09

0.97

0.98

0.98

1.02

28

0.36

0.35

0.99
0.39

1.01

0.34

0.40

0.37

0.39

0.18

0.15

0.24

0.39

0.32

0.18

0.19

’02

’03

’04

’05

’06

’07

’08 (FY)EHS Report

Number of injury accidents that occurred in the Group
Average for all industry accidents in Japan
Average for Japan’s manufacturing industry

TOPICS

1.95

Average for Japan’s electromechanicalmanufacturing industry
Tokyo Electron Group
Target for the number of injury accidents

Note: T he number of injury accidents is shown, taking the number in FY 2001 as 100.
Frequency of occupational accidents: based on the number of occupational
accidents per one million labor hours

Development of New Weight Scale to Reduce Accidents
during Handling of Heavy Objects
Accurate measurement of weight is an important process in handlingheavy objects. Visual or tactile assessment of weight tends to be

SOCIAL Reportmisleading; workers often find the actual weight is heavier than they
estimated. In the past, inaccurate measurement of the objects tobe handled led to many injuries of Group employees, with the mostcommon problems being back pain or getting stuck under the object.
To prevent such accidents, we have implemented special weightscales which are traditionally equipped with tools for handling small
parts and products.

32

TOKYO ELECTRON Environmental and Social Report 2008

0

Weight scaleOffering Safety Training with Hands-on Experience

Safety has become an increasingly important element of our

Desktop training and other vicarious learning may not be powerfulequipment design and development, reflecting growing demandenough to develop necessary vigilance for safe operations. Therefore,

from employees and customers. In response, we provided an online

our Saga Plant provides hands-on experience training which aims toequipment safety education program in fiscal year 2007 with regard

provide actual or simulated experience of what dangerous operational

to the handling of our products. This web-based education provides

work is like, to raise employee awareness of occupational safety,

necessary information for equipment safety design, such as risk

reducing accidents and the resulting

assessment details, and lessons learned from past accidents.

damage and injuries. During thetraining to experience work in highequipment has become

places, participants learn about

taller as we seek better

proper usage of safety belts throughproductivity amid smalleruse of a torso belt or a harness-type

space requirements. Thissafety belt.

means a greater number of

Immersion into liquid

assembly and adjustment
processes need to beHighlights

In recent years, our

Health and Safety

Ensuring Product-Related Safety

conducted in high places
and there is greater riskthat our employees may
fall. We work in earnest to

To learn the risk of handlingminimize accidents during

pressurized liquid chemicals,

work in high places as part of our effort to achieve genuinely safe

participants wear protective

product design, “A safety program for product handling.” Our latest

clothes and goggles and are exposed to simulated pressurized water in acoater/developers are designed to require less work, especially lesspipe. This experience is designed to ensure participants understand theheavy lifting, from high places. In particular, heavy components thatimportance of wearing protective gear in the correct manner.

were previously located on the top of equipment are now installed

To experience the potential of being electrocuted, participantson the inside. In addition, we reduced the number of component

touch an energized electrode with bare hands. Although sparks will

adjustments and revised the frequency of periodic maintenance.

result if a pair of energized electrodes come into contact, the shock

When assembling previous models, we needed to use safety

from the three 12-V batteries connected in series does not affect thesteps and access platforms 90 times to complete one piece of our

MANAGEMENT Report

Online safety management training program

Experiencing being hunghuman body.
Witnessing the powerof heavy objects

EHS Reportequipment, whereas the latest model requires 50 times.

Eliminating Units on the Top Side
Before improvement

After improvement

Electrode used in training

SOCIAL Report

Participants also learn the potential risks of heavy objects byseeing floor tiles (the same type of those used in actual clean rooms)
falling, crushing empty cans.

TOKYO ELECTRON Environmental and Social Report 200833

S o c i a l R e port
R e l a t i o n s h i p w i t h E m p l oye e s

Relationship with Employees
The Tokyo Electron Group endeavors to create a workplace that motivates employees and values
their self-initiative.

Concept Underpinning the Personnel System

In addition, we conduct an annual survey of employees to

The Tokyo Electron Group respects a spirit of challenge andinvestigate their awareness of TEL Values and what effect they have

independence among its employees and aspires to be a corporate

on employee motivation. The results of this survey are shared withgroup in which employees can take on a variety of challenges.

employees.

We are improving the working environment to attain the following
reasonable risks in creative endeavors; (2) rigorous fairness inProviding Employees with Comfort
in the Workplace

handling of our personnel; and (3) fairness in compensation. Our

The Tokyo Electron Group is committed to providing employees

personnel system is designed to motivate the organization and help

with a comfortable workplace. As part of efforts, we revised oureach employee develop him/herself. The system does not only focus

childcare leave system in April 2007 and introduced a parenting

on results, but also attributes importance to the process leading tothose results. Our goal is to fairly evaluate employees based on theirbenefit program the following October. Our employees can now takeextended periods of leave for child care1 and choose to work shorter

contribution through the three mainstays of “competency to assess

hours (one hour less than regular hours) for a longer period2. Inprocesses,” “the individual’s role (mission),” and “results based

fiscal year 2008, a total of 54 employees took childcare leave. Ouron the employee’s role (performance).” Competency is not just an

regular employees are also eligible to receive financial support ofobjective of assessment and inspection, but a measure of growth of

500,000 yen; 300,000 yen; 200,000 yen; and 100,000 yen when their

the individual employee’s skills and abilities as required for various

children are born, turn three years old, enter elementary school andenter junior high school, respectively3.

three targets: (1) fair evaluation of employees who fail while taking

Highlights

task categories.

In addition, we have a “refresh vacation” system so that employees

Concept of Our Personnel System

MANAGEMENT Report

can refresh themselves both physically and mentally. Under thisCompany
MissionIndicate company
goals and directions

Performance

Reward performance thathelps the Company reach its
goals with commensuratecompensation

system, employees can take from two weeks to one month holiday

Competency

when their term of service reaches 10 years, 15 years, or 25 years.

Offer careers andopportunities to build
skills needed to meetthe company’s goals

In recent years, mental health problems in the workplace havebecome a serious social concern. In response, we provide mental

Mission: The individual’s role
Competency: Competency to assess processes
Performance: Results as based on employee’s role

health education for our executives and are actively implementing
measures to help employees look after their mental health.
1 In the past, employees were eligible for childcare leave until their children turned
one year old (or 18 months in exceptional cases). However, they can now take leave
until the end of the April following the date on which their child turns 18 months (oruntil their children are three years old in some exceptional cases).

Employees
Competency

Performance

Competency

Obtain expertiseand offer aprofessional attitude

Provide performancethat helps the company
reach its goals

Polish up on
professionalism toobtain higher salaries

EHS Report

2 Eligible employees can use this system until the end of the fiscal year when theirchildren graduate from elementary school. In the past, eligibility was limited tothose with children aged three or younger.
3 The benefit amount may vary if applicable children are not covered by thecompany’s health insurance program.

TEL Values
In April 2006, we summarized the values and codes of conduct of

TEL University

the Tokyo Electron Group as TEL Values. At present, various related

The Tokyo Electron Group believes that employees are invaluable

programs are being implemented, including the Chairman’s visits toassets for the Group. Based on this belief, we foster our employees’

offices/plants and communicative forums among employees, in ordercapabilities from a mid- and long-term perspective in order toto share TEL Values with all members of the Tokyo Electron Group.

achieve employees’ individual development and increase the vibrancy

TEL
T EGroup.
L V aInlotheru e swords, we aspire to be a company filledof thewithV a l u e s

SOCIAL Report

dreams and vitality. For this purpose, we established TEL University

34

in August
Challenge
P 2007.
r i d TELe University is designed to provide employeeswith opportunities to obtain the knowledge and skills necessary for

We accept
themore,challenge
We take pridein providing
high-value
us topursue thenumberproducts
one position worldwide.
What’sthe of going beyond
others are doing in pursuing our goal of beand services.
University is useful in developing the capabilities
of managers
andnumberone globally.
● We offer our customers cutting-edge
educating the next generation of leaders as wellasviewin promotingchanges as opportunities, and● We
technological products, along with the highest
respondto them flexibly and positively.
exchanges
betweenservice,
management
and helping
level of quality
and technicalin the and employees
pursuit of total customer satisfaction.
We Values.
are tolerant of failure, and consider
employees deepen their understanding of the●TEL
important to learn from the process and● We consider profit to be an important measure
results.
of value in our products and services.

TOKYO ELECTRON Environmental and Social Report 2008

TEL Values

TEL Values

TEL Values

The Tokyo Electron Group strives for harmonious relationships and mutual growth with local
communities wherever it operates.

Take child to work

Our Approach to Corporate Citizenship Activities
At the Tokyo Electron Group, we place the highest priority on gaining
the trust and acceptance of customers, suppliers, investors andcommunities throughout the world and therefore strive to be a faithfuland cooperative member of the communities and nations in which we
do business. Guided by these policies, we are engaged in a variety ofactivities as a good corporate citizen in Japan and overseas.

C o m m u n i c a t in g w i t h L o c a l C o m m u ni t i e sCommunicating with Local Communities(Corporate Citizenship Activities)

We will continue to build and maintain trusting relationships withthe local communities in which we do business, consistently aiming
for mutual growth.

with Japanese toys and study math and science. This annual event
helps the children develop a good understanding of different cultures
as well as of an impression of what it is like to work in a global

Tokyo Electron AT Limited, Tokyo Electron Tohoku Limited andcorporation. As a positive consequence, they generally take more ofTokyo Electron Kyusyu Limited invite their local neighbors on plant

an interest in what their parent does at work. For employees, this has

tours in the hope of boosting communication with local communities

shown to help their motivation levels.

and ensuring their neighbors are aware of their operations. Each ofthese tours attracted a good number of participants, who visited notCompany Tour for College Students (Taiwan)

only manufacturing plants but also employee cafeterias. We received

Tokyo Electron Taiwan Limited invited students from Nationala great deal of positive feedback from participants, including requests

University of Kaohsiung to the office on June 24, 2008. The
participants sat in on lectures that gave a basic outline ofopportunities to interact

semiconductors and watched a production demonstration thatwith local people.

utilized training equipment. The objective of this company tour is to

We will continue

provide an opportunity for students to learn about the semiconductor

to build and maintainproduction equipment business. We plan to place even greater focus

harmonious relationships

on such activities in the future.

with the local communities
Participants in plant tour

where we operate.

Christmas Charity Event (Europe)
Tokyo Electron Europe Limited (TEE) hosts a charitable lucky draw

Take Our Daughters and Sons to Work
(United States)

event as a part of its annual Christmas party. For the 2007 event, TEE

From 2003, Tokyo Electron U.S. Holdings, Inc. invites children (agedRockinghorse donates life-saving medical equipment to sick children

from 8 to 12) of its employees to their parent’s workplace throughhospitalized in medical institutes in Sussex, where TEE is located.

the annual Take Our Daughters and Sons to Work event.

Interestingly, the number of medical devices donated by Rockinghorse

selected Rockinghorse Charity as the recipient of collected funds.

outnumbers those provided by the United Kingdom’s National HealthService. We invited our suppliers to support this charitable event andthe world. The event helps them see first-hand how numerous

received a total of 36 luxury prize items, including a television, cellular

cultures work together to make a company successful and thephones and a 19-inch PC screen. TEE employees bought a total ofimportance of cultural understanding and respect for others.

617 pounds worth of tickets, which were available for purchase up
until the day of theof proper use of resources. They were briefed on improving resource

event. Together withefficiency and recycling. They were then divided into small groups

a matching fund fromto create robots within a 20-minute period by using a variety of end-

TEE, a 1,234-poundof-life products such as PET bottles, snack bags, gum wrappers, PC

donation was provided

mice and cellular phones. Finally, each team presents their robot andto Rockinghorse on

the best performing team was granted an award.

December 11. TEE will

The participants were also given a lecture on safety awareness,

continue to proudly hostwhich was followed by a team-based quiz designed to enforce thesuch charitable events.

SOCIAL Report

During one of the activities, children learned about the importance

EHS Report

Through guided educational activities, the youngsters not only
discuss various career paths, but also the cultures of people acrossconcepts studied in the lecture. There were also opportunities to play

MANAGEMENT Reportto provide more such

Highlights

Plant Tours (Japan)

Donation of funds raised at the Xmas charity event

TOKYO ELECTRON Environmental and Social Report 200835

C o m m u n i c a t in g w i t h L o c a l C o m m u ni t i e s

S o c i a l R e port
Communicating with Local Communities (Corporate Citizenship Activities)

Sponsorship of Eco Festa 2008 (Japan)

clean-up activities. In 2003, the company received a Keep Austin

Tokyo Electron Kyushu Limited (TKL) became a corporate sponsor of

Beautiful Award.* In recognition of our contributions to the Adopt-a-

the First Eco Festa 2008, held in Kawachi-machi, Tosu City, Saga on

Street program, we were also granted a Keep Texas Beautiful Award.

March 9, 2008.

* This award was granted by Keep Austin Beautiful (KAB) in appreciation of a significant
contribution to beautify and clean up the community and reduce waste. KAB is an Austinbased nonprofit organization and grants awards to individuals and organizations on anannual basis in recognition of environmental stewardship activities.

This event, organized by the Tosu Forestry Cooperative, drew
approximately 220 citizens of Tosu City and 46 TKL employees.
Together they planted a total of 1,400 hardwood trees (cherry trees,
activity, participants watched a 50 year-old, 30-meter tall zelkova tree

Volunteering in Cleanup Efforts Following an Oil
Spill in South Korea’s West Coast (South Korea)

being logged, with some taking pieces as a memento of the event.

A total of 51 employees

camellia trees, oaks, dogwoods and maples). After the forestation

This event was part of TKL’s continuous promotion ofenvironmental conservation activities.

of Tokyo Electron Korea
Limited volunteered theirHighlights

time on January 3 and 4,

Tree Planting by Tokyo Electron Kyushu Limited(Japan)2008 to help clean up an

TKL also planted trees on Mt. Tawara in Aso on March 15, 2008.

of the country.

For the activity, now in its third year, 228 TKL employees and theiroil spill in the west coast
Oil cleanup activity

The spill occurred on

MANAGEMENT Reportfamilies planted 1,000 trees. In the future, TKL plans to sign an

December 7, 2007 at the coast of Taean after a tugboat snapped

agreement to secure 1.5 hectares of land (plantable for five years) to

its towrope and a barge which was being pulled by the tug drifted,

the north of the planted area and continue the forestation program tocolliding with an oil tanker. As a result, an estimated 15,000 liters

create a watershed forest.

of crude oil was spilled. On the affected shores, sand and rocks
were covered in a thick black oil slick, emitting a strong odor. Our
employees worked together for the two days to help restore thecoastline. We will steadfastly continue to make such contributions toTree planting on Mt. Tawara

help preserve the global environment.

Donation of Gym Mat to Isawa Daiichi Elementary
School (Japan)
Employees of Tokyo Electron Tohoku Limited visited Isawa Daiichi
Elementary School in Oshu City, Iwate Prefecture on February 29,

EHS Report

2008 and donated a gym mat for use in physical education classes
and “31-legged race” training. The school ranked third at the latest
national 31-legged race. We were delighted and impressed with thestudents’ enthusiastic reaction to our donation. After the presentation

Clean Up of Neighboring Areas

ceremony, our employees had the opportunity to compete in a

All Tokyo Electron plants and offices are engaged in cleaning-up

31-legged race with students of the school. All our employees will

and flower planting activities in their neighboring areas. We willcontinue to work together to help develop the local community while

continue to make contributions to ensure our communities stayaiming to achieve perpetual growth of our business.

clean and beautiful.

SOCIAL Report

Adopt-a-Street (United States)
Tokyo Electron U.S. Holdings, Inc. became the first company in theAmerican city of Austin to “adopt” a road in the city as part of its

31-legged race members

36

TOKYO ELECTRON Environmental and Social Report 2008

We received the following feedback on our Environmental andSocial Report 2007 as well as our business operations from
Mr. Hitoshi Nakagomi.

C o m m e n t s f r o m a S t a ke h o l d e r

Comments from a Stakeholder

Hitoshi Nakagomi
Division Leader, Business Siting Promotion Division,
Business Siting Office Commerce,
Industry and Labor Department,
Yamanashi Prefecture(1) Comments on the Environmental and Social Report
After reading the Tokyo Electron Group’s Environmental and Social
Report 2007, I was able to gain an understanding of the Group’s strong
commitment to becoming a part of the solution to the many problems
society and the global environment face today and its uncompromising
determination to make positive contributions to society as a leading
Japanese corporation. What particularly impressed me was Chairman
Higashi’s recognition of the critical condition of society when he
expressed that “the global environment is approaching a critical point.”
With this recognition, he clearly stated that it is the “Tokyo ElectronGroup’s mission to provide environmentally friendly and highly
economical and productive semiconductor equipment and technology.”
Sharing the TEL Values such as pride, awareness and a spirit ofchallenge with Group employees worldwide will help maintain the
morale of employees, which in turn works to increase stakeholder
satisfaction and, ultimately, corporate value.

(2) Comments on the Tokyo Electron Group’s
EHS Activities
The Tokyo Electron Group implements its EHS activities based on
analysis of current performance and works to include not only theGroup but the entire supply chain and neighboring communities.
I believe such an approach represents the Group’s policy to play a
responsible role in society.
I used to think that the pursuit of profit was the primary mission ofbusiness. However, after reading a section in the Roundtable Meeting with
Stakeholders, where all participants agreed that pursuit of profit alone
would only result in a greater environmental impact, I fully understand thatthe pursuit of profit and social contributions are compatible.
The Group also places great importance on communication with local
communities and provides work experience and plant tours to local school
students as a way of developing the talent of the industry. Yamanashi
Prefecture welcomes such activities that nurture students’ interest in
manufacturing and develop future leaders in the region. Attracting andretaining human resources is an important priority for the prefecture.

(3) Yamanashi Prefecture’s Impression of the Tokyo
Electron Group
Many people in Yamanashi feel close to Tokyo Electron Limited, aleading global manufacturer of semiconductor and FPD production
equipment and a company with major plants and research facilities in theprefecture. Many local citizens are employees of the company and many

TEL suppliers and business partners are located in the prefecture. As an
outstanding leader of the electronic machinery industry in Yamanashi, TEL
is like a vast tree with wide and deep roots across the prefecture.
We feel fortunate that such a leading company has facilities in
Yamanashi Prefecture and makes great contributions to enhance
the image and develop the economy of the region by successively
releasing a wide variety of environmentally and safety-conscious
equipment to national and international markets.

(4) Requests and Expectations for the Tokyo Electron Group
Looking at the current energy landscape, we are going through atransitional period where the leading energy source is shifting fromfossil fuels to new energy sources that leave no carbon footprint.
Environmental friendliness is a mandatory element not only in
manufacturing activities but in each and every action that we take in ourlives in order to pass down a sustainable society to the next generation.
One of Yamanashi Prefecture’s primary agendas includes theprevention of global warming, the creation of a recycling society, thedevelopment and introduction of clean energy technologies, and themaintenance and improvement of the aesthetic quality of Yamanashi,
including the implementation of some aesthetic-related restrictions.
TEL’s commitment to playing an important role in solving climatechange issues through its intensified EHS activities is in alignment
with the future direction of Yamanashi Prefecture. The prefectural
government would like to provide support for TEL’s related activities to
the greatest extent possible.

Our Response
We appreciate these encouraging comments. Tokyo Electron
AT will continue its environmental and safety efforts. Many
initiatives promoted by Yamanashi Prefecture, such as thoseto mitigate global warming, create a recycling society andimprove the aesthetic quality of the prefecture, take the same
direction our business communities should target.
As a corporate member of Yamanashi Prefecture, we would
like to make positive contributions to the communities in which
we operate.
Kozo Hara
President & Representative Director
Tokyo Electron AT Limited

TOKYO ELECTRON Environmental and Social Report 2008

37

™

TOKYO ELECTRON LIMITED
Environment, Health & Safety Center
2-30-7 Sumiyoshi-cho, Fuchu City,
Tokyo 183-8705, Japan
Tel: +81-42-333-8252
Fax: +81-42-333-8477
http://www.tel.com
Published: November 2008

Mixed Sources
Product group from well-managed
forests and other controlled sources
www.fsc.org Cert no.SGS-COC-1515© 1996 Forest Stewardship Council
Use of Forest Thinning Support Paper
Part of this pamphlet (from page 3 to 36) is printed
using “Morino Chonai-Kai Forest Thinning Support
Paper,” the result of a partnership between Office
Chonai-Kai, an environmental nonprofit organization
working to support used paper recycling, and Iwate
Prefecture’s Iwaizumi-cho municipality, which is
working to promote forest restoration.

A—(2)—060002

Waterless printing, which does
not generate hazardous
effluents, is adopted for thisreport. It is printed with volatileorganic compound (VOC)-freeinks on FSC-certified paper
containing materials fromproperly managed forests.

PR46-330