President Statement

Toward Promoting Corporate Social Responsibility (CSR)
A corporation is a social entity and therefore it has a responsibility to work for the development of environmentallysound society. I look at it as though from the perspective that TEL has been entrusted into my care by society, and I
am to act by encouraging CSR-oriented management.

The Ethics Committee was launched six years ago at the sametime that our Code of Ethics was set out. The committee aims toexamine the planning and the implementation of business ethics
education and enlightenment activities, as well as the practice ofKiyoshi Satobusiness based on the Code of Ethics. We are determined to maintain

President & CEOa corporate culture rooted in the high level of ethics suitable for a

Tokyo Electron Limited

global exellent company.
Japanese companies are learning from the Western governancemodel, and setting up committees as outlined above has become anincreasingly popular trend. However, at TEL we have been putting
this into practice for several years now.
At TEL, we have developed our operations globally, but it is nosimple matter to correctly understand and comply with the different
rules in each country and region in which we have operations. However,
we take this matter very seriously and are making efforts to formulatea system that ensures that we are in compliance throughout the world.
With this system, we are maintaining an environment in which all
employees can work while guarding a high level of integrity.

Transparency of Management is Criticalfor Substantial Implementation of CSR
Since the day that TEL was founded, fair and honest manage-Environment and Safety are Central to CSR for TEL

ment has been at the root of the company. With this in mind, I haveThe main business of our company is the manufacturing of semi-been managing the company since my appointment as the president

conductor production equipment. By providing better products toin June 2003.

semiconductor manufacturers, we contribute to higher performance in

In order to put fair and honest management into practice, it isproduction and better quality semiconductors. The two main

important for corporate executives to have a clear vision of this, but atelements of our company’s CSR policy are to secure absolute safety

the same time, it is also imperative to have a system where a high levelin the user’s operation of our equipment when used by customersof ethical standards are maintained. At TEL, under the corporate govern-and to minimize the environmental burden in any field in which ourance scheme, which is fundamental to CSR, we have an Ethics Com-company is involved.

mittee, a Compensation Committee and a Nomination Committee.

Whether we succeed in our environmental and safety efforts

The Nomination Committee is an independent body that fulfills

depends greatly on the ingenuity and the efforts of equipment devel-

the task of nominating the company’s next president, as the position isopers. Our developers integrate precise performance requirement

not nominated by the current president. In this way, the selection

demands from customers into design on a daily basis. In the compet-process of the corporate executive is given increased transparency. I

itive world of today, it is not easy to “pack” the environment andmyself was appointed President by this committee. In a nutshell, thesafety into equipment design; however, we are aiming to achieve

most positive effect of this system would seem to be that it does away

both through the investment of human resources and capital.

with any incentive to curry favor with company brass, and allows one

We Demonstrate Leadership in the Semiconductor
Production Equipment Industry

to pursue a career by the virtues of his or her convictions.
The Compensation Committee is an independent body that
decides the compensation of the President & CEO, while also aiming

The semiconductor industry is a younger industry, encumbered

to increase the transparency of management. This system was intro-by fewer rules and conventions when compared with otherduced five years ago and the compensation for representative directors

industries. For that reason, it is imperative that each company

is disclosed on the invitations to shareholder’s meetings.

actively works in order to solve various problems in the social andTOKYO ELECTRON

4

Environmental Sustainability
Report 2004

My Eco-life“I love fishing and go often go to
the Okutama area or Aki River onholidays, and the river pollution
always bothers me. I will do myutmost to keep our rivers cleanand strive to protect the environment so that we can eat the caught
fish safely.”

manufacturers in the world; consequently, we have an obligation to

the environmental sectors.
For example, the semiconductor manufacturing process requires

demonstrate leadership, not only in the industry, but also in society

the use of many chemical products; therefore, every time a new

both in our decisions and in actions. While placing an emphasis on

manufacturing process is invented, new chemical products are used.

the pillars of our CSR policy, the environment and safety, we will

In some of these cases, although not legally banned, some chemical

forge stronger ties with customers, suppliers and all stakeholders in

products are not suitable from the perspective of the environment oran effort to steadily implement solid measures.

safety; this makes for difficult decisions on whether or not to use

In this document, we report on our approach to the environment

them. In these situations, our company holds safety in the highest

and safety and the actual activities at the heart of TEL. Your voices

regard. We think that a substance should not be used until a safe

are extremely important in making managerial decisions and I ask formeans of using it is established.

your frank comments.

TEL is one of the largest semiconductor production equipment

TEL’s Credo on Environmental Preservation

TEL’s Safety and Health Credo< TEL’s Credo on Environmental Preventation >< TEL’s Safety and Health Credo >The Tokyo Electron Group believes that preserving and continuously
improving the global environment is one of the most important objectives
for mankind, as well as our 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 at TEL. Our profit delivery date requirements, and time limitations
must not be met at the sacrifice of human life and the safety of our facilities and equipment.

<<

TEL’s Principles on>
Environmental Preservation include:

TEL’s Principles on>
Safety and Health Preservation include:

1. Continuous Improvement
TEL is conscious that the factors that affect the safety and health ofcustomers and our employees exist at the stage of manufacturing,transportation, installation, use, maintenance and service of our products, and based on this awareness, we shall continually strive to eliminate factors that impede the safety and health of our products.

1. Continuous Improvement
TEL recognizes that the products we manufacture affect the environment, and therefore, we, with our customers and suppliers, shall continually strive to minimize the environmental impact of our processes
and operations.

2. Knowledge
TEL continually strives to enhance our understanding of safety and healthand improve these conditions for all people working in our sites. In addition, TEL aims to gain qualitative and quantitative grasps of safety andhealth factors on TEL Group activities and operations.

2. Knowledge
TEL continually strives to enhance its understanding of the impact that
TEL’s operations have on the environment, and the responsibility that
this entails. In addition, TEL aims to gain a quantitative grasp of environmental factors, and the impacts resulting from our activities andoperations.

3. Performance Criteria
As well as strictly observing mandatory safety and health laws, treatiesand agreements, TEL strives to enhance its own safety and health management system and improve global safety and health programs by the proactive establishment of aggressive safety and health performance criteria.

3. Performance Criteria
As well as strictly observing mandatory environmental laws, treaties
and agreements, TEL strives to enhance its own environmental management system and improve global environmental preservation programs by the proactive establishment of its own aggressive environmental performance criteria.

4. Disclosure
TEL shares information about its safety and health credo, policies andthe progress of our safety and health activities with all board membersand employees, and publish the general public our progress as the needarises.

4. Disclosure
TEL shares information about its environmental concepts and principles, as well as the progress of our ongoing contributions toward environmental protection with employees and the general public.
5. Partnership
TEL actively participates in environmental protection activities practiced by our customers, suppliers and local communities.

5. Partnership
TEL actively participates in safety and health activities practiced byour customers, suppliers and communities.
November 27, 1998

September 25, 1998

TOKYO ELECTRON5

Environmental Sustainability
Report 2004