Environmental
Report 2000
Contents
2
3
4
5
6
8
9
10
12
13
14
15
19
21
25

Message from the President
Corporate Profile
Tokyo Electron Group Credo on Environmental Preservation
Tokyo Electron Group Environmental Preservation Activity Promotion Organization
Environmental Management System
Environmental Audits
Environmental Management System Objectives and Targets
Waste Reduction and Recycling
Energy Conservation
Resource Conservation
Chemical Substance Control
Products for Reduced Environmental Impact
Environmental Accounting
Societal Contribution and Environmental Education
Other Activities
This report was prepared based on the results of the Tokyo Electron Group‘s environmental
preservation activities, mainly in Japan, during fiscal year 1999 (from April 1, 1999 to March 31, 2000).
We plan to issue this report annually.

Contact

Tokyo Electron Limited
Environment, Health and Safety Center (Attn: Yamanaka, Asadzuma, Miyaju, Kuroki)
30-7 Sumiyoshi-cho 2-chome, Fuchu City, Tokyo 183-8705
Tel: +81-(0)42-333-8052 Fax: +81-(0)42-333-8477
Tokyo Electron homepage: http://www.tel.co.jp

Tokyo Electron

Environmental Report 2000

Message from the President

We human beings, were able to accumulate unprecedented prosperity andwealth by virtue of the technological progress and dramatic gains in productivity over the past several decades. The flip side of this success storyis that we have been imposing a huge burden on our Mother Nature andthe global environment. Unless we mend our ways, destruction of the global environment will soon come to such an extent that human life itself
will be imperiled.

Being well aware of such reality and keeping it in mind, we, Tokyo Electron Group, aim to ceaselessly pursue prosperity in true harmony withthe global environment.

This Environmental Report is our corporate pledge to preserve the environment. It explains our environmental policies, specific action plans for
implementing those policies, and the results of such actions. We intend
to issue an updated report on annual basis.

We hope you understand our commitment to environmental preservationand find this report informative. We welcome your candid comments andsuggestions.

Tetsuro Higashi
C.E.O., President
Tokyo Electron Limited

Tokyo Electron

Environmental Report 2000

Corporate Profile
Company name:
Address:
Phone:
Representative:
Established:
Capital:Main products:

Tokyo Electron Limited
TBS Broadcast Center, 3-6 Akasaka 5-chome, Minato-ku, Tokyo 107-8481
03-5561-7000
Tetsuro Higashi, C.E.O., President
November 11, 1963
¥47,163,260,000 (as of March 31, 2000)
Semiconductor production equipment (developed in-house and imported),
LCD production equipment (developed in-house), computer system,computer networking equipment (imported), electronic components (imported)
Employees:
1,244 (as of April 1, 2000)
Group employees:
9,117 (as of April 1, 2000)
Sales (consolidated): ¥440,728,000,000 (FY3/00)(parent company): ¥364,212,000,000 (FY3/00)
S a l e s(yen in millions)

500,000

402,407400,000

423,570

401,774

Parent company
Consolidated

455,584
423,752

440,728

432,784364,212313,820300,000

266,397

Geographic Breakdown of Semiconductor/
LCD Production Equipment Sales (Consolidated Basis)
Other 5.2%

Europe
9.4%
Korea
10.4%

TaiwanTaiwan
28.4%

U.S.
18.5%

0

FY3/96(Term 33)

FY3/97(Term 34)

FY3/98(Term 35)

FY3/99(Term 36)

U.S.
Korea

200,000

100,000

Japan

Europe
Japan
28.1%

Other

FY3/00(Term 37)

< Domestic Subsidiaries >< Overseas Subsidiaries >• Tokyo Electron Sapporo Limited (Hokkaido)• Tokyo Electron Tohoku Limited (Iwate)• Tokyo Electron Miyagi Limited (Miyagi)• Tokyo Electron Yamanashi Limited (Yamanashi)• Tokyo Electron FE Limited (Tokyo)• Tokyo Electron Logistics Limited (Tokyo)• Tokyo Electron Leasing Co., Limited (Tokyo)• Tokyo Electron Agency Limited (Tokyo)• Tokyo Electron EE Limited (Kanagawa)• Tokyo Electron Device Limited (Kanagawa)• Tokyo Electron Kyushu Limited (Saga)• Tokyo Electron America, Inc. (Texas)• Tokyo Electron Oregon, Inc. (Oregon)• Tokyo Electron Massachusetts, Inc. (Massachusetts)• Tokyo Electron Texas, Inc. (Texas)• Tokyo Electron Phoenix Laboratories, Inc. (Arizona)• Tokyo Electron Arizona, Inc. (Arizona)• Tokyo Electron Europe Ltd. (England)• Tokyo Electron Deutschland GmbH (Germany)• Tokyo Electron Italia S.p.A. (Italia)• Tokyo Electron Switzerland Ltd. (Switzerland)• Tokyo Electron Nederland B.V. (Netherlands)• Tokyo Electron España S.L. (Spain)• Tokyo Electron Ireland Ltd. (Ireland)• Tokyo Electron Israel Ltd. (Israel)• Tokyo Electron France S.A.R.L. (France)• Tokyo Electron Korea Ltd. (Korea)• Tokyo Electron Taiwan Ltd. (Taiwan)

Tokyo Electron homepage: http://www.tel.co.jp

Tokyo Electron

Environmental Report 2000

Tokyo Electron Group Credo on
Environmental Preservation
Tokyo Electron Group (“TEL Group”) established the “Environmental Credo” and “Environmental
Principles” on September 25, 1998 to exhibit its commitment to global environmental preservation
activities. The respective plants of the group are to promote environmental preservation activities
based on their own environmental policies, standards, manuals and procedures developed based on theabove “Credo” and “Principles” of the Group.

<The TEL Group Credo on Environmental Preservation>
The Tokyo Electron Group believes that preserving the global environment and constantly improving it 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 ourmany customers, share holders, employees and society in general.

<The TEL Group Principles on Environmental Preservation>
1. Continuous Improvement
TEL is conscious that products manufactured by the TEL Group affect the environment, and based on this awareness, we, with our customers and suppliers, shallcontinually strive to minimize the impact of processes and operations on the environment.
2. Knowledge
TEL continually strives to enhance its understanding of the impact that the TELGroup has 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 TEL Group activities and operations.
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 environmental concept, principles and the progress of our contribution toward environmental protection with employees andthe general public.
5. Partnership
TEL actively participates in environmental protection activities practiced by ourcustomers, suppliers and communities.
Date: September 25, 1998
Tetsuro Higashi
C.E.O., President
Tokyo Electron Limited

Tokyo Electron

Environmental Report 2000

Tokyo Electron Group Environmental
Preservation Activity Promotion Organization
The organization that drafts and finalizes the TEL Group’s policies regarding environmental management activities and drafts, deliberates on, and approves targets and action plans is the TEL Group Environmental Committee, chaired by the board member in charge of environmental issues. The Environmental Committee addresses and resolves company-wide issues. The Environmental Management
Committee, headed by the Environmental Committee Chairperson and Environmental Management
Representative, promotes environmental preservation activities at each plant in cooperation with top
management.

TEL Group Environmental Committee Organization
As of September 1, 2000

President

Corporate Senior Staff
Meeting

Environmental Committee
Chairperson (Senior Vice President)
Secretariat (Environment,
Health and Safety Center)

Manufacturing plants’
Environmental Management
Representatives (EMR)

Office facilities’
Environmental Management
Representatives (EMR)

Manufacturing plants’
Environmental
Management Committees

Office facilities’ Healthand Safety Committees

Subcommittees• Chemical Substance
Subcommittee• Waste Control
Subcommittee• Energy and Resource
Conservation Subcommittee• Environmental Impact
Assessment Subcommittee• Product Review
Subcommittee

Representatives ofservice affiliates

Environmental
Subcommittees

Tokyo Electron

Environmental Report 2000

Environmental Management System
To continually promote environmental preservation activities, the TEL Group has developed and implemented an environmental management system based on the ISO14001 international standard. At
present, we conduct internal audits of the environmental management system, primarily at
ISO14001-certified facilities. Third party inspections of such facilities are also conducted periodicallyby the authorized external environmental certification organization.

■ Conceptual Diagram of the Environmental Management System

Basic policy

Planning• Environmental impact
assessment• Legal requirements• Objectives and targets• Environmental
management program

Management
review

Implementationand operation

Checking andcorrective action• Structure and responsibility• Training, awareness, andcompetence• Communication• ENS documentation anddocument control• Monitoring and measurement• Corrective and preventive
action• Internal environmental
audits■ Establishment of the TEL Group Environmental Committee
In response to mounting global environmental problems, the TEL Group established the TELGroup Environmental Committee in 1996 as an offshoot of the existing Product Safety Committee.
The Committee has been sequentially proceeding to promote ISO14001 certification of the sevenmajor manufacturing and research facilities in Japan (Sagami, Tohoku, Saga, Kumamoto, Yamanashi, Ozu, Koshi). As a result of such efforts, all seven facilities have been certified by third-party certification organizations during FY1997- FY1999. The Committee presently oversees the environment at TEL facilities and is promoting environmental preservation activities on a group-wide basis. Environmental issues pertaining to equipment and parts are overseen by the Worldwide Product Environment, Health, and Safety (WW product EHS) Committee.
Tokyo Electron

Environmental Report 2000

■ External Certification (ISO14001)
Seven of TEL Group plants have been ISO14001-certified as of December 31, 1999. Additionally,
Tokyo Electron Miyagi Limited aims to obtain ISO certification by April 2002.

Plant

Certification Date

Expiration Date

Certification No.

Sagami Plant

December 10, 1997

December 10, 2000

EMSC-1110

Tohoku Plant

February 19, 1998

February 19, 2001

EMSC-1118

Saga Plant

March 12, 1998

March 12, 2001

EMSC-1119

Kumamoto Plant
Koshi Plant

March 26, 1998
September 9, 1999

March 26, 2001
March 26, 2001

EMSC-1120 Rev. 1
EMSC-1120 Rev. 1

Yamanashi Plant

May 15, 1998

May 15, 2001

EMSC-1124

Ozu Plant

August 27, 1999

August 27, 2002

EMSC-1414

Tokyo Electron Phoenix
Laboratories, Inc.
(slated for certification
by December 2001)

Tokyo Electron Tohoku Limited
Tohoku Plant

Tokyo Electron Miyagi Limited
Preparing for certification(slated for certification by April 2002)

Tokyo Electron
Arizona, Inc.
(slated for certification
by April 2002)

Tokyo Electron Tohoku Limited
Sagami Plant

Tokyo Electron Kyushu Limited
Saga Plant

Tokyo Electron Yamanashi Limited
Fujii Plant / Hosaka Plant
Tokyo Electron Kyushu Limited
Koshi Plant

Tokyo Electron Kyushu Limited
Ozu Plant

Tokyo Electron Kyushu Limited
Kumamoto Plant

Tokyo Electron

Environmental Report 2000

Environmental Audits
At TEL, environmental audits are one key activity for promoting the environmental preservation
activities referred to in the “Credo.” We independently conduct internal environmental audits ofevery plant where an environmental management system has been implemented. The audit findings
are reported to the top management at each plant and used for review and improvement of theenvironmental management system. To ensure that internal environmental audits are conductedreliably, they are conducted only by certified internal environmental auditors. An auditor certification
system has been established at every applicable plant.

■ Internal Environmental Audit Implementation Status (FY1999)
Plant

TohokuSagami

Yamanashi

Saga

Kumamoto

Koshi

Ozu

Month of Audit(First audit)

’99/8

’99/7

’99/10’00/2’99/12

’99/6

’99/4

(Second audit)

—

—

—

—

—

’99/12’99/6(Third audit)

—

—

—

—

—

—

’99/12*The Koshi and Ozu Plants have been conducting internal environmental audits since fiscal year 1999.

■ Number of Certified Environmental Auditors in TEL Group(as of July 1, 2000)

Plant

TohokuSagami

Yamanashi

Saga

Kumamoto

Koshi

Ozu

Total

Chief auditors

2

11

37

21

24

4

16

115

Auditors

24

16

94

5

54

13

18

224

Total

26

27

131

26

78

17

34

339

■ Topics (Audits conducted at Ozu Plant)
The Ozu Plant conducts internal environmental audits to continually upgrade its environmental
management system. In April and June 1999, the plant conducted preliminary audits of all its organizational units. In December 1999, they conducted a regular audit. In August 1999, the plant
was ISO14001-certified by an external certification organization. The audit results improved witheach audit as the system steadily took root. The overall audit score was 42.3% for the first preliminary audit, 83.2% for the second prelim(%)
inary audit, and 96.0% for the regular
100
audit. As the graph at right shows, the80
audit results improved dramatically af60
ter certification.
40
20
0
1st preliminary
auditTokyo Electron

2nd preliminary
audit
Before certification

Environmental Report 2000

Regular audit
After certification

Environmental Management System
Objectives and Targets
At each plant, we first ascertained the type of impacts (environmental impacts) various environmental
aspects (e.g., the plants operational activities, product manufacture, services) have or may potentiallyhave on the environment. We then assessed such impacts (environmental impact assessment).
Through this process, we identified which environmental aspects have or may potentially have a major environmental impact (identification of significant environmental impact). To reduce the risk ofthese environmental impacts’ occurrence, we clearly set objectives and targets.
The following lists the major objectives and targets established at ISO14001-certified plants.
(1) Reduction of wastes and improvement of recycling rate(2) Promotion of energy and resource conservation(3) Proper control of chemical substances(4) Development of environmentally benign products
To achieve such objectives and targets, we have developed and are implementing an environmental
management system. This entails preparing an Environmental Management Program (EMP) that specifies responsibilities, means, and schedules, among other matters; and periodically monitoring, measuring, and keeping records of key operational variables.

■ Key Environmental Objectives and Targets
Environmental Objectives

Environmental Targets

Reduction of wastes andimprovement of recycling rate

• Thorough sorting of wastes• Implementation of plastic waste recycling• Improvement of recycling rate
• Reduction of volume of waste per person• Implementation of recycling of all concentrated liquid wastes

Promotion of energy and resource
conservation• Reduction of paper usage• Reduction of water usage• Reduction of power usage• Development of energy management systems

Proper control of chemical
substances• Reduction of chemical substance usage• Preparation for compliance with the PRTR system• Ascertainment of status quo of exogenous
endocrine-disrupting chemicals (environmental hormones)• Augmentation of chemical substance monitoring equipment
and operation there of• Conduct of emergency response drills for chemical substance safety

Development of environmentallyfriendly products• Reduction of products’ energy consumption• Identification of products’ recyclable components• Establishment of product disposal procedures• Reduction of quantities of chemical solutions used by products• Complete disuse of regulated CFCs used by productsTokyo Electron

Environmental Report 2000

Waste Reduction and Recycling
Waste reduction is an important issue in terms of both preserving the global environment and alleviating the burden on incinerators and other waste disposal facilities.
Our philosophy is, “Minimize waste generation, maximize recycling of wastes that are generated, andproperly dispose of wastes that cannot be recycled.” In accordance with this philosophy, every TELGroup plant reduces the amount of waste it generates and sorts wastes to facilitate recycling.

■ Total Waste Volume
In fiscal year 1999, we started keeping a tally of the amount of waste generated by our non-manufacturing facilities in addition to our manufacturing plants. At manufacturing plants and researchfacilities, waste volume grew in tandem with a substantial rise in production and capacity utilization. In fiscal year 1999, the TEL Group’s total waste volume increased on a year-over-year basis.
For reference, the graph below includes fiscal year 1996 data for certain manufacturing plants.

Waste volume
Basic unit(%)
250

Trend in Waste Volume
(ton)
9,000

8,072.4

8,000

7,109.3

7,000
6,000
5,000

6,347.1
5,001.6

Waste volume
Basic unit = —Sales(FY1997 = 100%)

200
150

4,000

100

3,000
2,000

50

1,000
0

0

FY96

FY97

FY98

FY99

■ Breakdown of Waste Volume
Liquid wastes (including liquids classified as specially controlled industrial wastes) account forsome 48.6% of waste volume, followed in order by paper, scrap metal/product, and plastic waste.
All liquid wastes that cannot be disposed of in-house are collected and properly disposed of byoutside contractors.
Breakdown of TEL Group’s FY1999 Waste Volume

Breakdown of FY1999 Waste Volume by Location

Total waste volume 7,109.3 t
Glass, beverage containers,
Other
packaging materials,
incinerated ash
9.9%
2.8%

Paper
13.6%

Ozu
5.4%
Plastic
8.0%
Scrap metal/
product
12.1%

Liquid waste
27.2%

Scrap wood
3.4%

Specially controlled
liquid waste
Cafeteria garbage
21.4%
1.6%

Tokyo Electron

Fuchu
3.8%

Koshi
3.2%

Miyagi0.7%
Hosaka26.4%

Yokohama
5.7%
Sagami
9.0%

Saga
13.9%

Tohoku
9.1%
Fujii
9.6%

Environmental Report 2000

Kumamoto
13.2%

■ Recycling
We mainly recycle paper, beverage containers,
scrap wood, glass, plastic waste, and metal. Overthe past four years, the TEL Group’s aggregate recycling rate progressively increased from 15.3% to40.9%, 49.7%, and 55.3%, respectively.

(%)
100
90

TEL Group Recycling Rate

80
70
55.3

60
50

40.9

49.7

40
30
20

15.3

10
0

FY96

FY97

FY98

FY99

■ Examples of Recycling Programs at Offices
At the Akasaka Headquarters and Fuchu Technology Center, we are now recycling even confidential documents that were previously shredded or incinerated. To do so, we have teamed up with arecycling contractor to implement a box shuttling system that maintains complete confidentiality.

■ SortingSorting is essential for recycling to work. At every plant, we collect wastes sorted by their physicalproperties into 26–46 different classifications.

Waste storage facility (Tohoku Plant)■ Supervision of Waste Treatment Plants and Contractors
At each of our facilities, we certify and oversee contractors that handle interim treatment and final
disposal of wastes. Before contracting with a new contractor for waste disposal services, we conduct
a certification check, including verification of its license status and on-site inspection of its facilities. We thus make sure that the contractor has the capability to properly and lawfully process
and/or dispose of our wastes. Even after a contractor is certified, we conduct periodic on-site inspections to ascertain the status of its operations.

Tokyo Electron

Environmental Report 2000

Energy Conservation
At the TEL Group, we promote energy conservation as a means preventing global warming.
At all our facilities, we universally strive to reduce power consumption through such means as turning
lights off during lunch hour and regulating air conditioners’ temperature setting.
At ISO14001-certified plants, we systematically promote energy conservation toward specific objectives and targets.

■ Main Energy Conservation Measures• Reduction of power consumption by lighting and office equipment (at all facilities)• Regulation of air conditioning temperature setting (at all facilities)• Design and operation of capacity utilization reduction system for demonstration equipment (Yamanashi)• Turning-off of vending machines at night (Osaka)• Partial suspension of clean room use (Saga)• Scheduled equipment shutdowns (Ozu, Yamanashi)• Turning-off of compressors at night (Yamanashi)

In fiscal year 1999, we began keeping a tally of power consumption at non-manufacturing facilities in
addition to manufacturing plants. At our manufacturing plants and research facilities, production and assessment equipment has continuously been operating at full capacity since the second half of fiscal year
1999. As a result, the TEL Group’s aggregate power consumption increased substantially on a year-overyear basis in fiscal year 1999. Nonetheless, we will continue to promote energy conservation on an ongoing basis at all our facilities. For reference, the graph below includes fiscal year 1996 data for certain facilities.
Trend in TEL Group’s Power Consumption(kwh in millions)

Sagami
4.3%

(%)

160

250

120

121

200

121

109

150

50

Koshi
7.1%

20
0

0

FY96

FY97

FY98

Sapporo
0.1%

Saga
6.9%

100

40

Osaka
0.3%

Hosaka
25.6%

Fuchu
6.3%

80
60

Miyagi Yokohama Akasaka
0.7%
4.2%
1.7%

Tohoku
5.5%

150

140

100

Power Consumption by Location

Power consumption
Basic unit

Kumamoto
9.5%

FY99

Ozu
9.5%

Fujii
18.3%

Power consumption
Basic unit = — (FY1997 = 100%)Sales■ Examples of Energy Conservation Initiatives• In fiscal year 1999, the Saga Plant reduced its basic unit of power consumption per square meter by 20.4%
relative to the fiscal year 1996 level, surpassing its target by 10%. The plants’ energy conservation activities
thus yielded substantial results, although the results were inflated by reduced production at the plant.
• At the Ozu Plant, we reduced power consumption by turning off lights during lunch hour throughout theplant and limiting use of air conditioning in certain areas. The result was a 9,000 kwh reduction in power
consumption.
• At our Osaka Branch, we installed timers on beverage vending machines. The timers conserve energy by automatically turning the machines off at night.
Tokyo Electron

Environmental Report 2000

Resource Conservation
We at promoting reduction of paper use, mainly at ISO14001-certified plants, as a means of conserving natural resources. At all our facilities, we use recycled paper for everything except certain special
uses. We have also reduced our water consumption through day-to-day water conservation activities
and installation of cooling-water circulation systems and dry vacuum pumps.

■ Examples of Initiatives to Reduce Paper Usage• At the Saga Plant, we reduced use of copy paper by 2.9 million sheets between fiscal years 1996 and 1999(61% reduction), largely as a result of promoting use of electronic media in lieu of paper.
To continue reducing paper usage, we consider it crucial to further promote conversion to electronic media
and to place priority on revamping operating procedures and reducing use of forms.
• At the Ozu Plant, we switched over to completely recycled paper (i.e. 100% used-paper content) from April
1999. In August, we rebuilt our drawing printers so they would be able to accommodate completely recycled paper. As a result, we have achieved a completely recycled paper usage rate of 94% at the Ozu Plant.
• At the Koshi Plant, we reduced paper usage by copying on both sides of copy paper and making reducedsize copies. We are also proceeding with conversion to electronic media to further minimize paper usage.
• At the Sagami Plant, we reduced paper usage by some 1.4 million sheets (approximately 6 tons) in fiscal
year 1999 through such means as using both sides of paper, making reduced-size copies, and streamlining
document distribution. This is a 22% year-over-year reduction, which achieved the plant’s target. The plantis also recycling all discarded copy paper. Moreover, recycled paper accounts for over 90% of its copy paper
usage.

■ Examples of Initiatives to Reduce Water Consumption• At the Saga Plant we reduced total municipal water consumption by 50% in fiscal year 1999, exceeding thetarget of 35%.
• At the Ozu Plant, we modified pure-water production equipment in March 1999 in the aim of reducing
industrial water consumption. This has resulted in a 19% (9,200 m3) annual reduction in industrial water
usage.
• The Kumamoto and Koshi Plants’ aggregate water consumption had been rising since the Koshi Plant commenced operation in fiscal year 1998, but water consumption is now declining by virtue of water circulationequipment installed in the middle of fiscal year 1999. We think we can reduce these plants’ water consumption by as much as 75,000 t per year.

Kumamoto and Koshi Plants’ Water Consumption(t)
150,000
128,000
82,000100,000
75,00070,00050,000

0

FY96

FY97

FY98

Tokyo Electron

FY99

Environmental Report 2000

Chemical Substance Control■ Comprehensive Chemical Substance Control
If chemical substances are not properly used and controlled, they can have significant environmental and health impacts through production or products. Chemical control requires not only legal
compliance but also preparation based on risk assessment. At the TEL Group, we thoroughly andproperly control the chemicals used for production and used in our products to prevent significant
environmental and health impacts. Toward this end, we conduct risk assessments of chemicals’ noxious properties based on an understanding of actual circumstances.

■ Compliance with the Pollutant Release and Transfer Register Law (Law Concerning
Reporting, etc. of Releases to the Environment of Specific Chemical Substances andPromoting Improvements in Their Management)
Pollutant Release and Transfer Register (PRTR) Laws originated as a means of ascertaining the extent to which chemicals are released into the environment. In Japan, the Environment Agency initiated a pilot PRTR program in certain regions in 1997. In 1999, Japan enacted the Law Concerning Reporting, etc. of Releases to the Environment of Specific Chemical Substances and Promoting
Improvements in Their Management, scheduled to go into effect in April 2001. At the TELGroup, we will control the material balance of substances subject to the PRTR Law and report to
the government thereon.

■ Development of an MSDS Database
At the TEL Group, we control and use Material Safety Data Sheets (MSDS) through a computer system at each plant that reviews and registers chemical substances when they are first used. Henceforth, however, we will develop an on-line database that will enable group-wide access to MSDSdata.
TEL Group database server

MSDS data
PerusalRegistration

Network
Registration

PerusalRegistration

PerusalDept. that controls
MSDS data

Dept. that controls
MSDS data

Plant

Plant

Tokyo Electron

Environmental Report 2000

Products for Reduced Environmental Impact
At the TEL Group, we have endeavored to satisfy our customers around the world by offering services
and products such as semiconductor and LCD production equipment and electronic components.
Moreover, as stated in our Principles of Environmental Preservation, we will continuously endeavor in
unison with customers to reduce TEL Group products’ environmental burden. Specifically, every
plant will undertake to develop environmentally benign products, setting product-specific targets forenergy and resource conservation, reduction of chemical usage, and other such matters.

■ Examples of Key Initiatives
Business Unit

Description of Initiative

Etch systems (ES)• Reduction of power consumption

Yamanashi Plant
LCD systems (LCD)• Reduction of power consumption

Yamanashi Plant
LCD systems (LCD)• Reduction of chemical usage

Ozu Plant
Cleaning systems (CS)Saga Plant

Clean track (CT)Kumamoto Plant
Diffusion systems (DS)
Sagami Plant Tohoku Plant• Reduction of chemical solution usage• Reduction of IPA usage• Reduction of pure water usage• Reduction of power consumption• Reduction of chemical solution usage• Reduction of power consumption• Reduction of equipment’s footprint• Reduction of vinyl chloride resin cable usage• Establishment of procedural guidelines forequipment disposal• Reduction of power consumption■ Measures for Reduction of Environmental Impact in Physical Distribution
For the packaging used to ship our products, we are investigating new reusable materials. Additionally, we reuse some of the packaging materials we use now. For cushioning, we use and reuse an environmentally benign, biodegradable material. At the Kumamoto Plant, we are studying the feasibility of packing parts in containers to reduce the packaging materials used to ship them. We haveeven made some prototype containers. Henceforth, we will test the containers repeatedly and make
improvements in preparation for their use.

Tokyo Electron

Environmental Report 2000

■ Organization for Rectification of Products’ Environmental Problems
Common issues related to rectification of environmental problems involving the semiconductor or
LCD production equipment manufactured and sold by the TEL Group are reviewed and decided
upon by the WW Product EHS Committee chaired by the director in charge of environmental issues. For product-specific environmental problems, the concerned design/production, sales, and/or
service department conducts activities to rectify the problem under the direction of the applicable
BU Product EHS Committee.
Director in charge ofenvironmental issues

Organization for key individual products
BU Product EHS Committee

WW Product EHS
Committee
Engineering, sales, service
Secretariat: Environment,
Health and Safety Center

Initiatives to address environmental issues

WW : World Wide
BU : Business Unit

■ Targets for Reduction of Product-related Emissions and Consumption
In product development, one of our aims is reduce products’ environmental impacts such as gas
emissions and power consumption. Toward this end, we have set targets for the 2002 models of oursemiconductor production equipment for 200 mm and 300 mm wafers based on the 1997 models
of our equipment for 200 mm wafers, as shown in the table below.
Product EHS Roadmap
Wafer Size1997 Standard
200 mm2002 Target
200 mm2002 Target
300 mm

HAP emissions

1

0.4

0.5

VOC emissions

1

0.4

0.5

PFC emissions

1

0.4

0.5

Power consumption

1

0.8

1

Water consumption

1

0.8

1

Gas consumption

1

0.8

1

*Targets for 300 mm oxidation/diffusion, LP, CVD equipment are set at 1.5 times the standard data.

• HAP: Hazardous Air Pollutants• VOC: Volatile Organic Compounds• PFC: Per-Fluoro Compounds

Tokyo Electron

Environmental Report 2000

■ Fiscal Year 2000 Action Plan for Reducing Products’ Environmental Impact
The table below shows the TEL Group’s fiscal year 2000 action plan for developing environmentally benign products based on the Product EHS Roadmap.
Issue

FY2000 Action Plan

Global warming
prevention

Reduction of
power consumption

Adequately reduce power consumption in fiscal year 2000 as one
step toward achieving the Product EHS Roadmap’s targets for 2002.

Reduction of PFC
emissions

Adequately reduce PFC in fiscal year 2000 as one step towardachieving the Product EHS Roadmap’s targets for 2002.

Reduction of

Adequately reduce VOC in fiscal year 2000 as one step towardachieving the Product EHS Roadmap’s targets for 2002.

Air pollution prevention, VOC emissions
Safeguards against
Reduction of HAPacid rainemissions
Prevention of ozone
layer depletion

Reduction of consumption of depletable
resources

Restriction of use ofozone-depleting
substances

Promote disuse of HCFC substances

Promotion of recycling/reuse (dismantlement,labeling of materials,
disposal)

Set targets for every product and commence action to achieve them.
Determine feasibility of incorporating information into work
procedures and manuals related to dismantlement and disposal.

Prolongation oflife span of equipment/partsFor every product, set targets for prolonging the life ofequipment/parts and commence action to achieve them.

Adoption of “green”
procurement

Form a green procurement organization, establish green
procurement standards, begin asking suppliers to cooperate.

Lead-use restrictions

Share information regarding substitutes for lead solder. Ascertain
extent of lead usage in purchased products.

Introduction of LCA

Establish the capability to continually assess and reduce products’environmental burden throughout their life cycle.
For every product, select one or more issues from the above(including global warming prevention) and commence LCA.

Purchased products

Life-cycle assessment(LCA)

Adequately reduce HAP in fiscal year 2000 as one step towardachieving the Product EHS Roadmap’s targets for 2002.

■ Preparation for Implementation of Green Procurement“Green procurement” means procuring parts based on environmental considerations in addition to
the conventional procurement criteria of quality, cost, and delivery period.

Conventional Procurement Criteria
quality+cost+ delivery period

Green Procurement Criteria
quality+cost+ delivery period + environmental considerations

TEL Group companies have obtained ISO14001 certification and implemented green purchase of officesupplies, packaging materials, and other goods. We will also proceed to implement green procurementof parts used in our products. We will ask suppliers to cooperate with green procurement and will offer
our customers products with a reduced environmental impact. In addition to conducting environmentally benign business activities, we will propagate this approach to our suppliers and collaborators, thereby
contributing to activities to preserve the global environment.
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Environmental Report 2000

■ LCA Initiative
LCA (Life Cycle Assessment) is a technique for quantitatively assessing a product’s environmental
impacts during the course of its life from the raw material stage through manufacture, transport,
use, and disposal. To make products with relatively minor environmental impacts, it is necessary toanalyze and assess environmental impacts and to rectify on a priority basis problems that have major environmental impacts. In terms of the assessment method, there are many potential impacts tobe considered, as shown in the table below. On the global level, global warming is regarded as a major environmental issue. For global warming, we assess environmental impacts in terms of CO2
emissions. Many types of business activities contribute to global warming by generating CO2. For
instance, using electricity results in CO2 emissions from power plants that burn oil. Driving a vehicle emits CO2 as a product of gasoline combustion. Steel making emits CO2 when coke is burned.
Aluminum refining uses a lot of electric power, resulting in CO2 emissions.
When we use LCA to assess global warming, we assess CO2 emissions during a product’s life cycleby adding up total CO2 emissions throughout its life cycle. On the basis of the assessment results,
we review the life-cycle stages with a lot of CO2 emissions and investigate a broad range of corrective action such as substitution, design improvement, and process improvement. Through such a
process of comprehensively reducing CO2 emissions, we develop products that impose the smallest
possible impact on the environment.

Stages of the Product Life Cycle
Raw materials

Manufacture

Transport

Inputs to each stage

Use

Disposal

Outputs from each stage

Raw materials, parts

Atmospheric emissions, aqueous effluents, solid wastes

Environmental Issues Commonly Addressed in Environmental Impact Assessments
Environmental Impact

Global Environment

Regional Environment

Local Environment

Atmospheric• Global warming• Ozone-layer depletion• Acid rain

• Air pollution• Photochemical smog

Water quality

Soil
Other

• Marine pollution• Discharge of noxious

substances• Loss of rain forests• Desertification• Consumption of

depletable resources• Impacts on ecosystems

Tokyo Electron• Eutrophication oflakes and wetlands• River pollution• Ground watercontamination—• Soil contamination• Agrochemical contamination—• Impacts on human health

Environmental Report 2000

Environmental Accounting“Environmental accounting” is a tool for ascertaining the cost and effect of a company’s environmental activities for use within the company’s routine operations. At the TEL Group, we have decided toadopt an environmental accounting system to quantitatively ascertain the costs associated with ourenvironmental conservation activities and utilize them as gauges of corporate activities. Although
there are currently no uniform international standard for environmental accounting definitions andclassifications, Japan’s Environment Agency released Developing an Environmental Accounting System (Year 2000 Report) in May 2000.
In January 2000, we established an Environmental Accounting Working Group composed of TEL
Group personnel from throughout Japan. The Environment, Health and Safety Center serves as theWorking Group’s secretariat. At the same time, we also clarified (1) our approach to adopting environmental accounting, (2) the scope of our environmental accounting program, and (3) methods oftabulating environmental accounting data. In fiscal year 1999, we ascertained the cost of our environmental activities and implemented an environmental accounting system on a trial basis atop the foundation of the environmental management system. We intend to maintain such environmental conservation activities in the future as well.

■ Fiscal Year 1999 Results
Our fiscal year 1999 environmental costs (investments and expenses) are tabulated below. The numbers apply to the domestic plants and other facilities of TEL and its affiliates. Environmental conservation costs are classified as cost within the business area, management activity cost, and sosial activity cost. These costs do not include depreciation of capital equipment.

■ Future Issues
During the recent trial, we did not calculate costs such as cost of upper stream/lower stream, R&D
cost, and environmental damage cost, but we consider it necessary to investigate and include suchcosts in the future. From the standpoint of effective utilization of management resources, it is also
necessary to quantify improvements in environmental performance and ascertain their cost and effect. We plan to formulate an approach to ascertaining results and to undertake to quantify resultsin monetary terms based on this approach. We intend to disclose such issues as they are determined.

■ TEL Group’s Environmental Costs
Environmental Preservation
Cost Classifications(FY1999 results in thousands of yen)

Main Activities

Investments

Expenses

133,114454,598

Itemization

Cost within the business area
(1) Pollution prevention costs

air pollution, water pollution, soil contamination, etc.

76,718142,617(2) Global environmental
conservation costs

climate change prevention, resource conservation,ozone layer depletion prevention , etc.

37,775

24,791(3) Resource circulation costs

efficient use of resource, waste reduction, etc.

18,621

287,190630

49,242041,487

133,744545,327

Management activity costs

environmental education, monitoring andmeasuring environmental impacts , etc.

Social activity costs

afforestation, support of local environmental
activities, environmental information disclosure, etc.

Total

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Environmental Report 2000

■ Major Environmental Costs
Below are several examples of the TEL Group’s major environmental costs in the categories of costwithin the business area, management activity cost, and social activity cost. Cost within the business area are further classified as (1) pollution prevention costs, (2) global environmental conservation costs, and (3) resource circulation costs.
• Cost within the business area:(1) Pollution prevention costs: installation of filtering equipment, incinerator dismantlement
and removal expense, construction of storage facilities for special material receptacles, installation of redundant plumbing for pure-water product equipment’s liquid waste, environmental equipment maintenance expense, etc.
(2) Global environmental conservation costs: installation of unit cleaners for turbo freezers, installation of UV-blocking film on windows, rebuilding of vacuum pumps’ cooling water circulation systems, etc.
(3) Resource circulation costs: construction and enlargement of waste storage facilities, recycling expenses, waste processing expenses, etc.
• Management activity costs: environmental education expenses, cost of periodic audits by thirdparty organizations, environmental measurement expenses (e.g., for air/water pollution, soil contamination, noise, vibration, etc.), purchase of LCA software, etc.
• Social activity costs: afforestation expenses, expenses to support environmental activities conducted by local residents, contributions to environmental groups, environmental announcement expenses
Breakdown of Investment Expenditures
Resource circulation costs Management activity costs
13.9%
0.5%

Pollution prevention costs
air pollution, water pollution, soil contamination, etc.

Global environmental conservation costs
Global environmental
conservation costs
28.2%

Pollution prevention
costs
57.4%

climate change prevention, resource conservation,ozone layer depletion prevention, etc.

Resource circulation costs
efficient use of resource, waste reduction, etc.

Management activity costs
environmental education, monitoring/measuring of environmental impacts, etc.

Breakdown of Expenses
Global environmental
Sosial activity costs
conservation costs
7.6%
4.5%
Management
activity costs
9.0%
Resource circulation
Pollution prevention
costs
costs
52.7%
26.2%

Resource circulation costs
efficient use of resource, waste reduction, etc.

Pollution prevention costs
air pollution, water pollution, soil contamination, etc.

Social activity costs
afforestation, support for local environmental
activities, environmental information disclosure, etc.

Management activity costs
environmental education, monitoring/measuring of environmental impacts, etc.

Global environmental conservation costs
climate change prevention, resource conservation,ozone layer depletion prevention, etc.

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Environmental Report 2000

Societal Contribution andEnvironmental Education■ Societal Contribution
To preserve, maintain, and improve the global environment, businesses, government, and local
communities must work together to conduct activities in close communication with each other. At
the TEL Group, we actively participate in environmental preservation activities conducted by customers and local communities, in accordance with our Principles of Environmental Preservation.
Below is a listing of the some of the activities our plants have done to contribute to their local communities.

■ Examples of Notable Activities
Yamanashi Plant• Cooperates with and conducts Japanese Red Cross blood drives (1987: received
commendation from Governor of Yamanashi Prefecture; 1991: received a certificationof appreciation from the Minister of Health and Welfare)• Co-sponsors the Takedanosato Fireworks Festival• Makes annual donations to a local newspaper’s welfare and culture foundation.
Donations are collected in collection boxes installed on the plant’s premises• Contributes to the Red Feather Community Fund
• Allows plant parking lots to be used for events held by Nirasaki City
• Offers summer internships for local junior high school students• Conducts plant tours for local students• Collects and donates used postage stamps and new year’s towels• Donates to and otherwise cooperates with Nirasaki City’s street improvement projects• Installed blinking intersection rivets on roads from the plant to intersections with major
thoroughfares• Co-sponsors and supports local festivals• Donates to and otherwise supports local organizations (e.g., volunteer fire department)• Conducts traffic safety activities under the auspices of the Nirasaki Police Department,
including selection of Traffic Etiquette Ladies
Employees participated as Traffic Etiquette Ladies in the kickoff ceremony for Challenge
180 (a campaign aimed at achieving no traffic accidents or infractions for 180 days).
Employees also participated in traffic safety week events and promoted traffic safety inthe local community.

Challenge 180 kickoff ceremony

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Environmental Report 2000

Tohoku Plant• Participates in clean-up campaigns in the Industrial Park as a member of the Esashi Industrial Park’s
occupants committee
Every May and October, plant employees participate in a clean-up campaign sponsored by the Esashi Industrial Park’s occupants committee. The campaign entails picking up trash along the roads inside the industrial park and otherwise beautifying the environment.

• Co-sponsors and participates in the Esashi Folk Music Festival• Co-sponsors the Esashi Summer Festival• Co-sponsors the Mizusawa Fireworks Festival• Cooperates with and conducts Japanese Red Cross blood drives• Organized the Young Drivers Club made up of employees under 25 years old
In 1994, the Plant formed the Young Drivers Club at the behest of the Esashi Police Department in the aimof preventing traffic accidents among drivers under the age of 25. The club’s activities aim to elevate young
employees’ consciousness of traffic safety, prevent traffic accidents, and promote camaraderie among
members. The club has published a newsletter, conducted traffic safety campaigns, posted traffic safety placards on the plant’s premises, and solicited entries for the My Traffic Safety Proclamation contest in conjunction with the prefecture’s traffic accident prevention campaign. The plant has also held traffic safetyseminars.

• Stations personnel at the plant’s two entrances during morning rush hour to remind employees todrive safely in conjunction with Traffic Safety Week in the spring and fall
• Promotes a campaign to discourage drivers from leaving their engines running while parked on plantpremises in conjunction with ISO14001 certification• Encourages employees to contribute to a year-end mutual aid fund donates the collected funds to charity• Contributes to the Red Feather Community Fund
• Collects and donates used postage stamps• Conducts plant tours for students from elementary school to college• Offers plant internships for junior high school, high school, and vocational school students• Provides parking spaces on company property for events such as the Esashi Fire Fighters Competition• Dispatches athletes to the prefectural sporting events at the behest of the Esashi Physical Education Association

Commendations for theYoung Drivers ClubCampaign to encourage seatbelt use
during Traffic Safety Week

Sagami Plant• Contributes to the Kanagawa Community Fund Association• Cooperates with and conducts Japanese Red Cross blood drives• Co-sponsors and contributes to the Lake Tsukui Cherry Blossom
Festival• Contributes to Kawajiri Hachiman Shrine• Contributes to the Kanagawa Green Trust Foundation’s Greenery Fund
• Offers internships to local junior high school students

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local junior high school students

Environmental Report 2000

Ozu Plant• Participates in the annual Ozu-machi Environmental Beautification Campaign
Plant employees pick up trash on and around the plant grounds at certain times and days during
June (Environment Month).

• Cooperates with and conducts Japanese Red Cross blood drives• Co-sponsors the Azalea Festival and Jizo Festival• Participates in 180 Day Driving Safety Contest
The contest is sponsored by the Ozu Police Department for local companies. Employees enter thecontest in teams of five. The object is for teams to go 180 days with no accidents or traffic

Saga Plant• Participates in the Tosu City Trash Reduction/Recycling Business and Eco Office Commendation
Program
In 1998, the Saga Plant was certified as an Eco Office in the Tosu City as a place of businessactively involved in activities to reduce trash volume and recycle. The plant actively cooperates with
waste reduction activities promoted by local government bodies.

• Conducts cleaning and lawn mowing in nearby public parks• Promotes a campaign to discourage drivers from leaving their engines running while stopped as
one measure to prevent global warming• Cooperates with and conducts Japanese Red Cross blood drives• Donated computers to the Tosu Library• Collects and donates used postage stamps and telephone cards

Kumamoto Plant• Conducts beautification activities on and around the plant grounds
During June (Environment Month) and October (Hygiene Month), plant employees clean up theplant grounds and its environs, led by members of the Safety and Hygiene Committee and Safety
Promotion Committee.

• Cooperates with and conducts Japanese Red Cross blood drives• Co-sponsors the Kikuyo-machi Summer Festival• Promotes a campaign to discourage company bus drivers from leaving their engines running while
stopped as one measure to prevent global warming

Employees involved in beautification activities

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Environmental Report 2000

Koshi Plant• Conducts beautification activities on plant grounds and adjacent roads
Plant employees pick up trash on and around the plant grounds at certain times and days during
June (Environment Month).

• Conducts plant tours for students from elementary school to college• Exhibited at the Koushi-machi Industry Fair, an event held in conjunction with a National Athletic
Meet held in Kumamoto Prefecture• Participates in Driving Safety Contest• Participates in athletic sponsored by the Koushi-machi Business Association
Activities sponsored by the Koushi-machi Business Association primarily aim to promote friendshipand harmony among its member companies. It aims to contribute to the local community’s
development through its own development.

Koushi-machi Industry Fair

Picking up trash■ Environmental Education
At the TEL Group, we conduct environmental education for all
grades of employees, including newly hired ones. In our advanced
education program, we educate executives, managers and internal
auditors, cultivating specialized knowledge. We also conduct special training in routine operations and management for employees involved with significant environmental aspects. We strive toincrease their knowledge and emergency preparedness.

Environmental
Education Hierarchy

Advanced education
Special training
General education
Education for new employees■ Other Education Activities
We also publish environmental information on the TEL Intranet Web site, including updates on the latest environmental trends and the status of our environmental initiatives. We are thus striving to share
information within the TEL Group and further educate employees.

The Environment, Health and Safety
Center’s homepage

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Environmental Report 2000

Other Activities■ Eco Office Certification
In February 1998, the Saga Plant was awarded a certification by Tosu City under a program called
the Tosu City Trash Reduction/Recycling Business and Eco Office Commendation Program. The
certification was in recognition of the plant’s previous efforts to address environmental issues. The
plant will henceforth be inspected and recertified at two-year intervals.

Eco Office commendation

Eco Office certificate■ Green Purchase
Led by our administrative departments, we are promoting purchase of environmentally benign
products such as paper products, office supplies, and printed materials. Such products that we are
currently purchasing include the following.
• Copy paper (recycled paper)• Business cards (recycled paper)• Company brochures, etc.
(recycled paper)• Toilet paper (recycled paper)• Writing utensils• File folders

Copy paper (70% reused paper, 70% whiteness)and publication printed on recycled paper.

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Environmental Report 2000

Environment, Health and Safety Center
30-7 Sumiyoshi-cho 2-chome, Fuchu City, Tokyo 183-8705
Tel: 042-333-8052 Fax: 042-333-8477
This report is printed on recycled paper.