S o c ia l R e po r tCommunication with Stakeholders
Communicating with our stakeholders helps us grow as a company.

Our Approach to Communication

Our Approach to Social Contributions

TEL is proactive in our communications with all of our stakeholders. We share as much information as possible
about our business activities with everyone in order toadvance our environmental, health and safety program.
We find the feedback we receive in the give-and-take ofthese communications is irreplaceable. We have been
publishing environmental reports since 2000. These help
to advance communication and are sometimes used aspart of hands-on learning at
manufacturing plants. We also
provide EHS information on ourwebsite. We will continue to do
our absolute best to furthercommunications with our stakeCompany introduction
holders.
using an Environmental Report

TEL’s Management Philosophy states that “We place thehighest priority on gaining the trust and acceptance of customers, suppliers, investors and communities around theworld.” and “We therefore strive to be a faithful and cooperative member of the communities and nations where we dobusiness.” TEL is engaged in a variety of activities to contribute to society and build relationships of trust with governments and local communities around its facilities. This is truein Japan, of course, as well as overseas. These efforts are
based on the above principles. TEL will expand our activities,
hand in hand with our customers and neighbors.

Sharing Informationin the “EHS Times” and Intranet
TEL publishes an internal bimonthly magazine on theenvironment, health and safety titled “EHS Times” which
gives simple descriptions of the minutes of Group EHS
committee meetings, programs by Group companies ordepartments, and so on. Each company or office also publishes its own public-relations periodical, and these help
keep company employees aware of EHS issues. TEL alsouses its intranet to disseminate information throughout
the company and for information exchanges.

Efforts in JapanTEL receives Higo water resources conservation prize
Koshi plant has been running a water conservation program toincrease use of water circulation systems and other means forsaving water. Our efforts were recognized in FY 2005 in theform of a Higo water conservation prize. This prize is sponsoredby Higo Bank and the Kumamoto Nichinichi Shimbun (newspaper). It is presented to groups who are involved in efforts against
pollution or the depletion of ground water. In FY 2004, Koshi
plant reduced its use of waterat peak times by 40,000 tons
thanks to the recirculation ofindustrial cooling water andvacuum pump seal water, theimplementation of waterlessvacuum pumps and otherwater conservation measures. Higo water conservation prize presented

TOPICS
TEL’s Corporate Philosophy Regarding the Environment
The Tokyo Electron Group recognizes that the preservation and continuing
improvement of the environment is one of the most pressing matters facing society and must be given full consideration in business operations. TEL policies andoperations are designed with the goal of achieving prosperity in harmony withthe environment.
There are numerous examples of this philosophy in action. First, TEL works
with neighboring companies to keep the community safe and clean by adopting
streets that employees clean the area streets of trash as a volunteer group activity during work time. TEL also hosts a Texas Recycles Day Annual Event eachyear to educate employees about recycling at work and has recently joined CleanAir Partners program to help reduce the air pollution in central Texas. TEL has
won both a Keep Austin Beautiful Award and a Keep Texas Beautiful Award forour both our community and environmental programs. In addition, TEL has signed
to use 100% green energy.
On a very basic level, being a 100% green energy user is straightforward
evidence of TEL’s commitment to protecting the environment. TEL also joined thegreen power program early on as part of our overall corporate philosophy towardsupporting the community as an active corporate citizen, especially in relation tothe environment. Three years ago when we originally joined the program, there
was a slight cost increase for using green power over traditional fuels; yet with30

TOKYO ELECTRON Environmental and Social Report 2005

the fixed fuel cost as part of the agreement, we’ve actually begun to see a costadvantage to being a GreenChoice champion. TEL also wanted to support thisimportant program for the state of Texas to emphasize the importance of using
renewable energy and to help Austin Energy communicate that message to othercorporations who may follow in our footsteps.
TEL is dedicated to working in accordancewith corporate-wide best practices for the environment because, when it comes to preserving
our environment, everyone is responsible. Yet,
one of the biggest obstacles to renewable energy
is the high capital costs - compared with the fossil-fuel alternatives. Renewable sources that are
fairly competitive to the fossil fuel alternatives
can be encouraged by businesses. TEL is currently doing this by being a part of Austin Energys 100% Green Energy program.
A summary of an interview with Louis Steen, inSpring of 2004 with Austin Energy, the main electricand alternative power company in Austin.

Louis SteenVP of Marketing
Tokyo Electron U.S. Holdings, Inc.