Comments from a Third-Party Expert
I have read the Environmental and Social Report 2013 of Tokyo
Electron Limited and received a further explanation of thecompany’s environmental and social responsibility activities
from the directors of the CSR Promotion Department and theCorporate Environment Promotion Department and other staff
members. I would like to make my third-party comments taking
into account my observations on last year’s report.

Corporate principles and CSR
At the beginning, this report states the company’s corporate
principles, namely, its eight management policies for thedevelopment of a dream-inspiring society through its leadingedge technologies and reliable service and support. In line withthese policies, the report then explains the policy on corporatesocial responsibility. The fact that the company’s CSR promotion
framework is headed by the President implies a group-wide
enthusiasm to work on CSR, involving the head ofﬁce and all groupcompanies. Regrettably, the report does not refer to the relevance
between CSR and governance in its explanation regarding thegovernance framework, although highly viable governance isrequired to carry out the CSR activities effectively.

Expansion of new business and CSR
The company acquired two European companies and two
US companies in fiscal 2013 toward the development of
new business and enhancement of existing business. Of thecompany’s current sales, sales in Japan accounts for 24%
while sales outside Japan, including the United States andTaiwan, makes up the remaining 76%. This suggests the needto launch CSR activities globally. The head office must leadoverseas group companies in implementing energy conservation
measures and reducing environmental impact to ensurecompliance with the CSR policy. In that sense, signing andjoining the United Nations Global Compact in this fiscal year
was very significant. I hope that the company’s future reportwill cover more information on overseas group companies—forexample, what kind of new initiatives are being taken at whichgroup companies, as well as the situation for each country.

Environmental goals: Progress and results
The company reduced energy consumption at four out of six
major plants. However, overall CO 2 emissions increased at36

plants both in and outside Japan. The report attributes thisincrease mainly to rising power emission factors. I suspectthat an increase in the number of production and overseas
group companies is another possible reason, and think thatthe report should have provided more detailed information
about that. I noted the steady progress in reducing the volumeof water consumption and waste generated. As the company
has set a goal of a 50% reduction in energy consumption for
major models by fiscal 2015, I also expect that it will makefurther contributions to reducing energy consumption and CO 2
emissions of the users of its products in the future.

Initiatives for employees
This report discloses work locations of group employees. Of allgroup employees, 33% work outside Japan. The TEL Group in
Japan intends to increase the percentage of foreign nationals
in new hires to 20%, which demonstrates the company’s
proactive approach to diversity. As management of foreign
employees, who have different cultures and customs, will
become increasingly important, I hope future reports will includecomments from foreign employees.
I recognize that the company has enhanced the content of its
reports year by year. For even further improvement, the company
must identify the type of information that it needs as well as
the information that readers want, quantify and manage thecommon information between the two as KPIs (key performanceindicators), and disclose the KPIs on a continual basis. Theseefforts will help the company gain more trust from society.
Note: The third-party comment above does not constitute an opinion on theaccuracy or completeness of the information included in this report.

Yoshito Nakamura
Certified Public Accountant
Adjunct Instructor of Toyo University,
The Open University of Japan
Auditor, Supporting Organization of JOCV
Auditor, Foundation for
Accounting Research in Construction Industry
Auditor, Kawasaki City Council ofSocial Welfare
Chairman, Evaluation Committee forIncorporated Administrative Agencies,
Ministry of Defense