Environmental and Social Report 2009TOKYO ELECTRON LIMITEDCorporate Profile/TEL Values

Corporate Profile
Company name:Tokyo Electron Limited (TEL)

Address:

Akasaka Biz Tower, 5-3-1 Akasaka,
Minato-ku, Tokyo 107-6325, Japan
Tel.: +81-3-5561-7000

Net Sales and Ordinary Income (Consolidated)(Billion yen)
Net sales

Established:

November 11, 1963

Capital:¥54,961,190,000 (as of April 1, 2009)

Main products:

Semiconductor production equipment and Flat
panel display (FPD) production equipment,
Photovoltaic (PV) production equipment

Employees:

1,036 (non-consolidated, as of April 1, 2009)
10,491 (consolidated, as of April 1, 2009)

Net Sales by Division(Consolidated) (Billion yen)

Electronic components& computer networks
94.2

China 4.0

906.0
851.9

673.6

635.7

508.0

63.9

75.7

Mar. ’05

Mar. ’06

143.9

168.4

Mar. ’07

Mar. ’08

14.7

0

Net Sales by Region(Consolidated) (%)

Other
0.3

Ordinary income

Capital Expenditures andR&D Expenses (Billion yen)Group Employees(Persons)

Capital expenditures

10,685 10,491
9,877

Southeast Asiaand elsewhere 5.9

Mar. ’09

R&D expenses

8,942 9,129

Europe 6.0

56.9 66.0
FPD/PV
production
equipment
88.1

Year ended
March 31,2009

North America
Year ended
12.9

Semiconductor
production equipment
325.3

March 31,2009

South Korea
14.3

Japan
41.1

60.9
43.8

Taiwan
15.8

0

0
Apr.
’05

Apr.
’06

Apr.
’07

Apr.
’08

Apr.
’09

9.8

49.1

13.3

27.1 22.7 18.1

Mar. Mar. Mar. Mar. Mar.
’05
’06
’07
’08
’09

TEL Values
Tokyo Electron Limited (TEL) summarized the values and codes of conduct of the Tokyo Electron Groupas TEL Values in April 2006. We will share TEL values with all employees of the Group around the 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 accept the challenge of going beyond what
others are doing in pursuing our goal of becoming
number one globally.

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 thoroughimplementation in order to achieve our goals.

We respect each other’s individuality and placea high priority on teamwork.

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

TEL has been a constituent of the FTSE4Good Global Index.
Since September 2003, TEL has been listed in the FTSE4Good Global Index, a CSR index
compiled by FTSE Group. The FTSE Group is a world-leading index firm, a joint venture
between the Financial Times and the London Stock Exchange.

2

TOKYO ELECTRON Environmental and Social Report 2009

This report is intended to explain the Tokyo Electron Group’s stance on
corporate social responsibility and report on our initiatives concerning the
global environment and society.
● In the section entitled “Commitment by Top Management,” the chairman
and president discuss the roles and mission that the Tokyo ElectronGroup should perform with respect to environmental and social issues
from a global perspective, as well as the Group’s stance on those roles
and mission and its direction in carrying them out (pp. 4–5).
● The feature entitled “Highlights” presents an overall image of theGroup’s business and its initiatives concerning social issues; as well as
the prospects for the development of a low-carbon economy in the
future (pp. 6–9).
● We invited Ms. Fusako Matsuda, president of the Environmental
Economics Institute, Inc., to visit the Yamanashi Plant and review thegroup’s activities; and she has presented a third-party opinion detailingher observations (p. 31).
In preparing this report, we referred to the “Environmental Reporting
Guidelines” (FY2007 version) issued by Japan’s Ministry of theEnvironment and the 2006 Sustainability Reporting Guidelines publishedby the Global Reporting Initiative.
It is our hope that this report will serve to enhance communication
between the Tokyo Electron Group and its stakeholders; and we hope tomake use of such communication in our future activities.
The results of environmental accounting for FY2009 are available on
Web
Tokyo Electron’s website.
http://www.tel.com/eng/citizenship/index.htm

Contents
Corporate Profile, TEL Values

2

Editorial Policy, Scope of Report, Contents

3

Commitment by Top Management

4

HIGHLIGHT
I

Tokyo Electron’s Businesses andInitiatives Related to Social Issues

II Development of PV Production
Equipment Business6

8

Scope of Report

MANAGEMENT REPORT

Organizations covered: Tokyo Electron Group

Corporate Governance

10

Japan
● Tokyo Electron Ltd.
● Tokyo Electron AT Ltd.
● Tokyo Electron Tohoku Ltd.
● Tokyo Electron TS Ltd.
● Tokyo Electron Kyushu Ltd.
● Tokyo Electron Technology Development Institute, Inc.
● Tokyo Electron Software Technologies Ltd.
● Tokyo Electron FE Ltd.
● Tokyo Electron PS Ltd.
● Tokyo Electron BP Ltd.
● Tokyo Electron Agency Ltd.
● Tokyo Electron PV Ltd.
● Tokyo Electron Device Ltd.

Compliance11

Product-related Initiatives for the Environment

16

United States● Tokyo Electron U.S. Holdings, Inc.
● Tokyo Electron America, Inc.
● TEL Technology Center, America, LLC● TEL Venture Capital, Inc.
● Timbre Technologies, Inc.
● TEL Epion Inc.

Plant and Office Initiatives for the Environment

20

Health and Safety

24

Europe● Tokyo Electron Europe Ltd.
● Tokyo Electron Israel Ltd.
Asia
● Tokyo Electron Korea Ltd.
● Tokyo Electron Korea Solution Ltd.
● Tokyo Electron Taiwan Ltd.
● Tokyo Electron (Shanghai) Ltd.
● Tokyo Electron (Shanghai) Logistic Center Ltd.
● Tokyo Electron India Private Ltd.

Editorial Policy/Scope of Report/Contents

Editorial Policy

EHS REPORTEHS Management

12

50% Reduction in Environmental Impact by 2015 14

SOCIAL REPORT
Relationship with Employees

26

Relationship with Suppliers

28

Corporate Social Responsibilities (CSR)

29

Comments from a Third-Party Expert

31

Period covered: FY2009 (April 1, 2008 to March 31, 2009)
Topics covered: Areas related to the environment, society, and economy

TOKYO ELECTRON Environmental and Social Report 20093

Commitment by Top Management

Commitment by Top Management

Despite the changing economic conditions
our responsibilities remain the same:
contributing to the environment throughinnovation and achieving growth.

4

Chairman & CEO

President

Tokyo Electron Limited

Tokyo Electron Limited

Tokyo Electron’s mission remains unchanged

Higashi: The TEL Missions were announced in 2008, buteven amid the economic crisis.

around January and February there were already signs theHigashi: I feel that there is already a global drive towards

economy was faltering. At such a time, it seems like anachieving sustainable societies that are environmentally

extremely important move on the part of Tokyo Electron toconsiderate and make use of energy-saving products.

have demonstrated, both to its employees and those outside

The current financial crisis appears to have revealed a riftof the Group, that it would take the lead in proceeding with

between the direction that the real economy is aiming for

its commitments from a long-term perspective.

and the direction that the finance-driven economy has been

Takenaka: It is extremely significant that the Group’s senior

taking.

management explicitly formulated a clear policy regarding

Takenaka: Up to now, Tokyo Electron has enjoyed continued

the TEL Missions; and experiencing the current economic

growth as the result of the growth in the real economy,crisis allows me to again sense the importance andregardless of the state of the financial economy, but theimmensity of those missions.

current economic crisis has really had an impact on us.

Higashi: The Group’s culture has always been one of

Despite this, I believe that nothing has changed with

understanding society’s needs and issues and then taking therespect to our responsibility, or mission, to enhance thenecessary action.

social infrastructure and contribute to finding solutions to

Takenaka: I think that the Group’s approach of listening

environmental issues so that society can develop in a healthy

to people’s opinions and directly pursuing what it feels

direction.

is needed is something that has been passed down in its

TOKYO ELECTRON Environmental and Social Report 2009

they are moving beyond the realms of “convenience” andwith a sense of mission, feeling pride in the contributions“entertainment” to become an integral part of people’s lives

that they make to society from a long-term perspective. I(in devices related to security, medical equipment, and sobelieve that it is vital, in my own case as well, to thoroughlyon), we need to become better aware of how our roles relateinternalize this corporate culture.

to society.

We will play a leadership role in society throughIn our business we will strive to achieve a

our energy-saving technologies.

sustainable society by reducing environmental

Takenaka: When I entered the company some 25 years ago,

impact at manufacturing plants and producing PV

I never thought, that the use of semiconductors would growproduction equipment.

to the extent that it has. Semiconductors are employed in

Higashi: We have established the objective of developinga variety of different goods that support modern lifestyles,

equipment capable of halving the total environmental

including everything from PCs, mobile phones, home

impact at our customers’ factories scheduled for completion

electronics and automobiles to the social infrastructure.

by 2015 or later, as part of the medium- to long-term

In the future, there is no question that there will be anenvironmental goals in the TEL Missions. Since about 80%

increasing demand for semiconductors in the highlyof the total environmental impact of our products over

populated emerging countries.

the course of their entire lifecycle is generated when the

Higashi: In emerging countries we can also apply energy-

products are used at our customers’ factories, we believesaving technologies and alternative energy technologies,that the greatest contribution that we can make is to reducesuch as photovoltaic (PV) cells. I’m certain that we can

impact in that area.

contribute to economic growth in such nations, while limiting

Takenaka: In the future, we must formulate a more

the burden on the environment by energetically advancing

specific roadmap and numerical targets. We also intend

technological innovation. I feel that this will lead to balanced

to actively make new proposals in collaboration with parts

development for the entire planet; and that we are capable ofmanufacturers and other business partners to reduce theproviding society with value by displaying our strengths inenvironmental impact at all of our customers’ factories,

such areas.

as part of our after-service support for purchasers of our

Takenaka: Whether in hybrid vehicles or sensor-operated

equipment.

power management systems, semiconductors have been

Higashi: Regarding the PV cell field that we entered in 2008,

incorporated into products to enrich people’s lives. And

there’s still a great deal of scope for technological innovation

when seeking to introduce such technologies in emerging

in terms of conversion efficiency and other factors.

countries, I think that it will be possible to develop them from

Takenaka: Photovoltaic power generation is certain

the outset as environmentally-considerate products. I believe

to become part of the social infrastructure one day.

that by taking the lead as an equipment manufacturer we canTechnological innovation is essential for establishing PV

expect to further develop our technologies for manufacturing

production equipment as the core of a new business, and wesemiconductors and our future direction. In the sense ofwill still need to accumulate knowledge and expertise.

addressing social issues through business activities, I feel

Higashi: As for how we will be able to incorporate socialthat our role in society is growing ever more important.

contribution activities into our operations when creating theHigashi: Moving ahead, we must join with our customers insociety of tomorrow, the energy-saving products and PV

considering the future. Within the company, I think that thecells that we are currently developing are perfectly suited toawareness of this responsibility is increasing.

this task. This is really interesting, I think.

Takenaka: As with PV cells, the use of semiconductors is

Takenaka: We need to open up our future path through our

expanding more and more, to include the fields of social

own efforts. I would like for us to take the lead in achieving

contribution and safety. Up to now, semiconductors havegrowth by finding solutions to environmental issues throughmainly been used in PCs and mobile phones, but now thatvarious types of innovation.

TOKYO ELECTRON Environmental and Social Report 2009

Commitment by Top Management

corporate DNA. Both management and employees work5Tokyo Electron’s Businesses andInitiatives Related to Social Issues

H IG H L I G H T Ⅰ

Tokyo Electron’s Businesses and Initiatives
Related to Social Issues
This section introduces Tokyo Electron’s businesses and approach to the solution of social issues.

The Tokyo Electron Group supplies equipment for manufacturing semiconductor devices, which form the coreof PCs, mobile phones, and digital devices; equipment for manufacturing LCD panels used in large-size TVs
and PCs; as well as equipment for manufacturing PV cells, a product which will play a key role in preventing
global warming and reducing energy consumption. We also distribute electronic components and computer
networks made by the world’s leading companies. Through our provision of cutting-edge technologies, weoffer value to society.
Tokyo Electron is contributing to the healthy development of industry and society and the resolution ofenvironmental problems by recognizing the social problems related to our business activities,
communicating with the rest of society, and taking steadfast action to address those issues.

Product- and Service-related Initiatives
to Respond to Global Environmental Issues

Semiconductor production
equipment

pp. 8–9

HIGHLIGHT

We are using our technologies tocontribute to the solution ofenvironmental issues, such as global
warming.

We will strengthen our PV production
equipment business

MANAGEMENT REPORT

Reducing the Environmental
Impact of Our Products

pp. 16–19

CLEAN TRACK™
LITHIUS Pro™
Coater/developer
TELINDY PLUS™
Thermal processing
systemTactras™
Plasma etch system

Tokyo Electron is engaged in efforts
related to the use-phase of our
products, the phase with thegreatest environmental impact
within their lifecycle, including
enhancing energy efficiency.
We are making progress, during theuse of our products, in saving ofenergy and reducing the use ofregulated chemicals

EHS REPORT

Reducing the Environmental
Impact of Plants and Offices

EXPEDIUS™+
Auto wet station

Precio™
Wafer proberpp. 20–23
PV production
equipment

With the goal of reducing theenvironmental impact of ourbusiness activities, we are actively
taking steps to prevent global
warming, conserve resources, andreduce the amount of waste
generated.

SOCIAL REPORTISO 14001 audit

pp. 24–25

Labor Safety and Health
As one aspect of our corporatesocial responsibilities, we arepromoting measures to ensure thehealth and safety of everyone
involved in our corporate activities.

Oerlikon Solar’s Fab 1200 system

Hands-on Safety Training at theTokyo Electron Group

6

Oerlikon Solar’s
KAI PECVD system

TOKYO ELECTRON Environmental and Social Report 2009

Tokyo Electron’s Businesses andInitiatives Related to Social Issues

Creating an Employee-friendly
Working Environmentp. 26

We strive to create an employeefriendly workplace that will enable allof our employees to reach their fullpotential.

p. 27

Developing Human Resources

FPD production
equipment

CS1000SH
FPD coater/developer
Crystal spinner series

Electronic-component
and computer-network
industries

p. 28

Discussion with suppliers

Building Trust with Local Communities

EHS REPORT

Impressio™
FPD plasma etch/ash system

TEL University Learning Facility:
Karuizawa Club

Cooperation with Suppliers
In order to achieve our corporate
mission, which includes purchasing
products that are safe, healthy, andenvironment-friendly, we haveestablished relationships of trustand cooperation with our suppliers,
achieving growth together with
them.

MANAGEMENT REPORT

Trias™
Single-wafer CVD system

With the goal of fostering our
employees’ development andincreasing the vibrancy of ourorganization, Tokyo Electron iscommitted to developing humanresources from a medium- to longterm perspective, motivating our
employees, and valuing their selfreliance.

HIGHLIGHT

We are expanding our childcare leavesystempp. 29–30

We strive to coexist in harmony withthe local communities where we
engage in business activities, both inJapan and overseas, while also
fostering relationships of trust withthem.
Participation in volunteer activities
of a US-based NPO

SOCIAL REPORT

Xilinx Virtex™-6
FPGA

TOKYO ELECTRON Environmental and Social Report 20097

H IG H L I G H T ⅡMANAGEMENT REPORTHIGHLIGHT

Development of PV Production
Equipment Business

Development of PV Production Equipment BusinessTokyo Electron is strengthening its PV production equipment business as the new pillar of its
business strategy, thereby contributing to the creation of a low-carbon society.

The Tokyo Electron Group and its PV Production
Equipment Business
Solving the problem of climate change and global warming is
one of the most pressing tasks for humanity today. We needto shift from being dependent on fossil fuels to becoming a
low-carbon society by utilizing renewable energy. Renewableenergy is expected to make a significant contribution to theprevention of global warming because it can be used almost
perpetually, while emitting fewer greenhouse gases thancurrent mainstream energy sources. PV power generation
using solar energy is the leading type of such renewableenergy. However, in order for this green energy to come into
common use, further technological innovation and cost
reduction are necessary to overcome the current challenges
related to cost and efficiency, such as increasing theefficiency of converting solar energy to electricity andovercoming the shortage of materials to produce related
equipment.
The Tokyo Electron Group set up a joint venturecompany with Sharp Corporation (Sharp) in February 2008
to begin cooperative development of plasma CVD systems
for use in thin film silicon PV cells. In February 2009, we also
entered an exclusive sales representative agreement with
Oerlikon Solar Ltd. (Oerlikon Solar)* for end-to-end thin-film
silicon PV production line and equipment in the regions ofAsia and Oceania. The Tokyo Electron Group is also engaging
in its own independent development of technology. Based on
our belief that we must employ technology to tackle
environmental issues, we are striving to make the PV
production equipment business the third pillar of our Group,
following the semiconductor manufacturing equipment andFPD production equipment businesses.

Sales Representative Agreement with Oerlikon
Solar for PV Production Equipment
Tokyo Electron entered into an exclusive sales representative
agreement for end-to-end thin-film silicon PV production
equipment in the regions of Asia and Oceania, and began thesales and support of the end-to-end thin-film silicon PV
production line and equipment.
PV is now the focus of attention as a solution to current
issues related to the environment and energy conservation.
In the future, the PV market is expected to expand globally.
The Asian market, in particular, can expect the largest
growth.
We are determined to provide our customers with theequipment and support they need through our partnershipwith Oerlikon Solar, the world’s top manufacturer of end-toend thin-film silicon PV production lines, and by utilizing ourstrengths in terms of technology and service support.

Oerlikon Solar’s KAI PECVD system boasts of outstanding processing
capability and operation time.

EHS REPORT*Oerlikon Solar Ltd.：One of the world’s top manufacturers of end-to-end thinfilm silicon PV production lines and equipment. Oerlikon Solar equipment has
manufactured more than 800,000 thin-film silicon PV panels around the world.
Oerlikon Solar is known for its outstanding, reliable performance. Oerlikon
Solar’s end-to-end production line of thin-film silicon PV provides its customers
with the shortest delivery time and the most appropriate PV production capacity.

Strengthening the PV production equipment
business
Tokyo Electron’s business expansion

SOCIAL REPORT

Joint development with Sharp• Plasma CVD systems for use in thin-film
silicon PV cells• Tokyo Electron: Joint development,
manufacturing, and sales
Collaboration with Oerlikon Solar• End-to-end production line for thin-film
silicon PV cells• Tokyo Electron: Sales representatives in Asiaand Oceania
Independent development by Tokyo
Electron

8

TOKYO ELECTRON Environmental and Social Report 2009

Oerlikon Solar’s Fab 1200 is a complete end-to-end PV production line

Development of PV Production
Equipment Business

Jeannine Sargent

Senior Vice President
General Manager, PVE BU
FPD/PVE DivisionTokyo Electron Ltd.

CEO
Oerlikon Solar Ltd.

We are striving to contribute to a low
carbon society by strengthening our PV
production equipment business, while
delivering new technical innovation.

Join Forces for a Bright Solar Future
Oerlikon Solar’s mission is to make solar power an
economically viable alternative to conventional sources ofelectricity. In order to reach this goal in the near future, allR&D efforts are being dedicated to raising efficiencies whiledriving down the production costs of thin film silicon solar
PV modules. Identifying partners that offer synergies andjoining forces is one of the mayor keys to achieving thisgoal.
In Tokyo Electron we have found such a partner!
Our partnership is based on TEL’s extensive sales andcustomer support network in various geographies,
semiconductor experience and highly respected market
leadership; and on Oerlikon Solar’s proven, industry-leading
PV technology. This strategic cooperation is creating a newsolar powerhouse, unlocking the enormous potential of the
Asian solar PV market. By forming this cooperation with
TEL, Oerlikon Solar will be able to provide its customers withoutstanding equipment and support, while drawing upon theknowledge and technology acquired in the semiconductor
and FPD production equipment markets. Together, TEL andOerlikon will promote and expand the adoption of thin film
silicon PV technology in Asia, Oceania and Japan, areas
which are already leading in solar adoption and export.
While the viability of Oerlikon Solar’s equipment andend-to-end solutions receive growing attention from
customers around the globe, potential high growth markets
such as Japan, Taiwan or Korea are showing enormousinterest in Oerlikon Solar’s leading edge technology. These
markets can be precisely addressed by such a well respectedcompany as TEL. The global footprint of TEL’s sales andcustomer support teams provide a platform for thesubstantial growth of Oerlikon Solar’s leading thin film
silicon solar PV technology, leading to a win-win situation
for both companies.
Both companies are well positioned for the growth of
this industry. With this strategic partnership we arereinforcing our regional sales and customer service
structures, and providing TEL with leading-edge PV module
production technology.

EHS REPORTSOCIAL REPORTTOKYO ELECTRON Environmental and Social Report 2009

MANAGEMENT REPORTThe PV business is still in its initial development stage and abusiness model has yet to be built. In the PV businessmarket, where various companies are creating newtechnologies, we have focused on the thin film silicon PV,
for which technical innovation is expected that will ensurestable supply in the future while reducing costs andimproving conversion efficiency. Tokyo Electron signed an
exclusive sales representative agreement in February 2009
with the Switzerland-based company Oerlikon Solar for thinfilm silicon PV production equipment in the regions of Asiaand Oceania. The company has sophisticated technology for
PV development and processing. We believe that thispartnership with Oerlikon Solar, the top maker of thin-film
silicon PV production equipment, will enhance our global
competitiveness.
In forming an alliance with Oerlikon Solar, we recruitedengineers and sales people within our company. As a result,
we were able to draw together employees that were highly
motivated and proud to work for a new business directly
related to the environment. The expectations within ourcompany towards the new business are high; and we havealready begun to receive orders, providing us with a greater
understanding of the demand in Japan and other parts of
Asia.
Moving forward, we will try to achieve a low carbon
society by providing the highest quality products andservices, while drawing on the sophisticated technologies of
Oerlikon Solar and the unique know-how and technologies ofTokyo Electron’s equipment businesses.

HIGHLIGHT

Takashi Ito

9MA N AG E M E N T R E POR T

Corporate GovernanceCorporate Governance
The Tokyo Electron Group is improving and reinforcing its internal control systems andrisk management structures, with the aim of maximizing its corporate value.

Corporate Governance Policies
The Tokyo Electron Group is seeking to enhance its
corporate governance through a variety of measures topromote management focused on maximizing corporate
value and raising shareholder satisfaction. We haveestablished and operate optimal and highly effective
structures of governance that are based on our three basic
principles for reinforcing corporate governance.

Basic Principles of Corporate Governance

HIGHLIGHT

1. Ensuring the transparency and soundness of business
management
2. Facilitating quick decision-making and the efficient
execution of business management
3. Disclosing information in a timely and suitable manner

EHS REPORTMANAGEMENT REPORT

Corporate Governance Structures
The members of the Tokyo Electron Group are companies
that have statutory auditors. In April 2003, an executive
officer system was introduced to clarify the roles of theBoard of Directors and executive bodies and to facilitate
faster decision-making, as well as to propose and implement
timely business strategies.

Internal Control Systems and Risk
Management System
The Tokyo Electron Group is taking measures to reinforce
internal control systems to make them more effective,
with the goal of raising corporate value and engaging in
responsible conduct towards all stakeholders. The Group
engages in practical activities in accordance with thebasic policy on internal controls (established in May 2006
and revised in April 2008) and complies with the internal
control requirements concerning financial reporting
pursuant to the Financial Instruments and Exchange Act.
In order to construct and reinforce more internal
controls and risk management structures so that they
become more effective, a Chief Internal Control Director
was appointed in June 2008, and then in April 2009 an
Executive Officer in charge of Compliance & Internal
Control was appointed and the Risk Management & Internal
Control Department was established.
In addition, the Global Audit Center was established as
an internal audit organization in order to perform businessaudits of domestic and overseas group business sites;
perform compliance audits; assess whether internal control
systems are functioning effectively; and provide support toworkplaces when necessary for operational improvements.

■ Framework for Corporate Governance, Internal
Board of Directors
The Board of Directors has 13 members, of whom two are
outside directors. The term of office for directors is set at
one year to enable the Board to make timely and flexible
responses to changes in the business environment and tocreate structures in which managerial responsibilities areclear.
The Board has a Compensation Committee1 made up of
all directors, excluding representative directors (chairman& CEO and president), and a Nomination Comittee2 tofurther improve governance.
1 Compensation Committee: Makes a draft remuneration plan for the chairman& CEO and the president 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 for CEO, to be approvedby the Board of Directors

Control System and Risk Management System
Annual Shareholders’ Meeting

Compensation Committee
Board of Nomination Committee
Directors Chief Business Ethics Director

SOCIAL REPORT10The Board of Statutory Auditors is comprised of four
statutory auditors, of whom two are outside auditors.
Statutory auditors attend meetings of the Board of
Directors and other key meetings, conduct business audits,financial audits, and risk management evaluations, and also
audit the performance of duties by directors. The Board of
Statutory Auditors met six times in the fiscal year ended
March 2009.

TOKYO ELECTRON Environmental and Social Report 2009

Independent
Auditors

Chief Internal Control Director

Confirms the progress of improvements
and provides instruction

Representative
Directors

Request for improvement/Report

Request for
improvement

Compliance & Internal
Control Executive Officer

ReportAudit and
improvement
reports

Executive
Officers
ReportBoard of Statutory Auditors

Statutory
Auditors

Request for
improvement

Committees
s %THICS #OMMITTEEs Information Security Committee
s %XPORT 4RANSACTION
Monitoring Committee

Internal Audit Dept.
(Global Audit Center)

Audit

Risk Management andInternal Control Dept.
Request for improvement/
ReportMonitoring

Administrative Dept.

Checks and balances

Business Dept.

M ANAG E M E N T R E POR T

Compliance
The Tokyo Electron Group acts in strict compliance with corporate ethics andapplicable laws to ensure that its corporate activities are fair and reliable.

The lifeline of the Tokyo Electron Group is trust. The
basis for maintaining this trust is for each individual
employee and organization within the Group to strictly
conform to our corporate ethics standards and comply
with applicable laws and regulations. In carrying out ourbusiness activities, we have placed the highest priority oncompliance with strict ethical standards and laws.

Adopting Ethical Standards

Introduction

Ⅱ. Honest and Fair Business
Activities
Ⅱ-1 Technology, Safety, and theEnvironment
4. Ensuring Safety and Pursuing
Quality
5. Promoting Environmental
Preservation Activities
6. Ethics in Manufacturing
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
Ethics** The “Implementation” section provides specific matters and procedures.

Measures to Reinforce Compliance Systems
The Tokyo Electron Group adopted Compliance Regulations
specifying basic matters regarding compliance. These

Protection of Personal Information
When the Act on the Protection of Personal Information
came into full effect in April 2005, the Tokyo ElectronGroup adopted a basic policy and regulations concerning
the protection of personal information, while preparing
various guidelines and manuals regarding the handling of
personal information. We are also conducting Web-based
training for employees, distributing information via our
intranet, and taking other measures to ensure the proper
implementation of these policies and regulations when
conducting business operations. In addition, we identified
personal information stored on PCs loaned to employees
using software to better understand the current status of
personal information.
The Group has also taken a variety of measures
to reinforce the management of personal information,
including: installing servers specially equipped to handle
the storing of personal information, storing important
personal information exclusively on those servers,
restricting employees’ individual access to PCs by using
IC cards, changing passwords periodically, introducing
encryption functions, and using auxiliary storage units withpassword-based access control.

TOKYO ELECTRON Environmental and Social Report 2009

SOCIAL REPORT

Ⅱ-3 Relationship between the
Company and Individuals
12. Prohibition of Conduct Causing
Conflicts of Interests
13. Prohibition of Improper Use ofCompany Assets
14. Prohibition of Conduct ofHarassment

EHS REPORT

Ⅰ. Principles
1. Compliance with Applicable
Laws
2. Acting in Accordance withSocial Conscience
3. Maintaining Harmonious
Relationships with Local
Communities

MANAGEMENT REPORTThe Code of Ethics of Tokyo Electron GroupHIGHLIGHT

Based on the belief that shared standards are necessary
for the creation of a globally excellent company, we
adopted a “Code of Ethics” in 1998 as a detailed statementof our stance on ethical standards; and that same year
we established the Ethics Committee as an operationalorganization.
We revised the Code of Ethics in June 2007 in responseto the results of a survey on the status of compliance. We
made the code easier to understand and made certainchanges that reflect the current business environment.
To enhance understanding of the Code of Ethics, we
also revised a booklet that contains the code and explains
its content in a Q&A format, which we distributed to
all Group officers and employees, including overseas
personnel.

regulations are intended to ensure proper understandingof applicable laws and regulations, international rules,
and internal rules by all persons engaged in the business
operations of the Group, while also ensuring that conduct
accords with those guidelines at all times.
The Group also has a hotline (internal reporting
system) for use by employees and others to directly reporton suspected violations of the Code of Ethics or applicablelaws and regulations. Matters are dealt with fairly andin good faith by the Chief Business Ethics Director andthe Business Ethics Committee Chairman in the case ofmatters regarding the Code of Ethics, and by the Directorof the General Affairs Department in the case of mattersconcerning compliance, taking into consideration theemployee who made the report and other factors.
In August 2008, the Compliance Regulations wereadopted for overseas group companies and hotlines were
established at overseas sites. In addition, the Groupappointed an Executive Officer in charge of Compliance& Internal Control in April 2009 to raise awareness ofcompliance and strengthen enforcement within the Group.
We are also distributing information concerning thesecompliance-related activities via our intranet, conducting
Web-based training and carrying out other programs toensure that employees understand compliance policies,
thereby raising awareness of compliance and strengthening
our compliance systems.

Compliance

Stance on Corporate Ethics and Legal
Compliance11

EH S R E P OR T

EHS Management
EHS Management

Environment, Health, and Safety (EHS) activities are always a top priority for the TEL Group.

Basic Idea behind EHS Activities
The Tokyo Electron Group views caring for people’s healthand safety and the global environment as top businesspriorities. We are therefore committed to being a company
capable of earning the trust of all involved in our business
operations. We also believe that EHS activities will lead to
long-term benefits for the entire Group. As a responsible
member of society, we strive to help develop a more
affluent society through our EHS activities.

MANAGEMENT REPORTHIGHLIGHT

EHS Promotion System
We are building an EHS promotion system in order to foster
EHS activities throughout the entire TEL Group.
Our EHS activities are conducted with respect to threecore elements: Product EHS, related to products;
Customer-Site EHS, related to operations for productdelivery and design; and Plant and Office EHS, related toour plants and offices. The TEL Group companies, andTEL’s manufacturing subsidiaries in particular, began
developing and implementing environmental management
systems based on ISO 14001 in 1997 and obtained ISO
14001 certification.
■ TEL Group’s EHS Promotion System■ Environmental Steering Committee
Environmental Steering Committee

Global EHS Committee
Product Working Team

Plant and Office EHS(EHS activities ineach region)

Customer-Site EHS(EHS activities atcustomers’ facilities)

Product EHS(EHS activities for
the Group’s products)■ ISO 14001-Certified Plants and Offices
EHS REPORT

Environmental Steering Committee
Recognizing the increasing necessity of addressing global
warming and climate change, we established theEnvironmental Steering Committee in October 2007 tointensify and accelerate our green efforts. This highestlevel internal organization on environmental activities iscomprised of the executive officer in charge ofdevelopment as well as members from the corporate
marketing, corporate strategic planning and corporate
communications divisions.
The Environmental Steering Committee is comprised of
two working teams: the Product Working Team, which
examines the Group’s products; and the Office/Logistics
Working Team, which examines its offices and plants anddistribution practices. Under the slogan of “Technology for
Eco Life,” the committee is promoting various activities
designed to advance TEL’s environment-related
commitments throughout the entire TEL Group. In FY2009,
the committee formulated standards and roadmaps forachieving those commitments.

Plant/Office name

Certification dateTokyo Electron PS Ltd./Tokyo
Electron AT Ltd.

Company name

Sagami Plant

December 10,
1997

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

Tokyo Electron Tohoku Ltd.

Tohoku Plant

February 19,
1998

1118-1998-AE-KOB-RvA

Tokyo Electron Kyushu Ltd.

Kumamoto/Koshi/
Ozu/Saga Plants

March 26, 1998

1120-1998-AE-KOB-RvA

Yamanashi Plant(Fujii/Hosaka area)

May 15, 1998

1124-1998-AE-KOB-RvA

Miyagi Plant

March 1, 2005

01245-2005-AE-KOB-RvA

Yokohama Office

July 14, 2004

EC04J0144

Tokyo Electron AT Ltd.

SOCIAL REPORTTokyo Electron Device Ltd.

Certification number

Office/Logistics
Working TeamEHS Activities Monitoring System
In order to increase the effectiveness of our EHS
management system, we continually increase the level ofauditing that verifies the system functions and results.
Auditing is performed from multiple viewpoints, within
plants and offices, within the Group, or by third parties. We
are focusing in particular on the Tokyo Electron GroupInternal Audit, a program of mutual EHS evaluations byrepresentatives of each plant or office, which was
instituted in FY2003. In FY2007, in response to theincreasing need to manage chemical substances containedin products across the entire supply chain, and incompliance with the revised Japanese Industrial Safety and
Health Act, we added new audit items to ensure that EHS
was implemented appropriately in cooperation with our
suppliers and partner companies. (The revised law requires
the enhancement of safety instructions and messages
provided by a primary employer* to the related
contractors.) Under this expanded scope, we will continue
to monitor our EHS management system and check ourEHS activities in an even stricter manner.
* Primary employer: According to the revised Industrial Safety and Health Act,a “primary employer” is a primary company that arranges for the employeesof its contractors to carry out a part of the company’s work at a single locationin cooperation with the company’s own employees.

12TOKYO ELECTRON Environmental and Social Report 2009

EHS Seminars for Customers
Tokyo Electron Taiwan Ltd. (TET) held its 5th EHS seminarfor customers at the Science Park Life Hub, located inside
the Hsinchu Science Park in Taiwan. The seminar focusedon the environment, providing an overview of the TELGroup’s EHS activities and the environmental measuresthat have been implemented in various systems, as well as
offering hands-on safety training using virtual-reality
images. Feedback from seminar participants included
comments that “the seminar made it easier to understandTokyo Electron’s environmental initiatives” and “the virtualreality training was very effective.”

HIGHLIGHT
MANAGEMENT REPORTEHS Training
The TEL Group offers EHS training based on the policy of
the “necessary training for the necessary people.” Training
courses are grouped by rank and are open both to Group
employees and to employees of partner companies who
work at the Group’s facilities.
The curriculum for newly hired employees also
includes an EHS training program as a required subject.

EHS Management

EHS Risk Management System
At manufacturing subsidiaries of TEL, environmental andsafety risks are estimated based on ISO 14001, OHSAS
18001, and OSHMS (in accordance with the guidelines ofthe Ministry of Health, Labor and Welfare of Japan). Thesesubsidiaries are implementing measures to first eliminate
the highest risks, while are also endeavoring to reducesome risks that they are not legally required to reduce.
With regard to the environment, we believe that it isessential to implement measures that help prevent global
warming.
The TEL Group operates in strict compliance with thelaw. We closely keep track of new environmental laws andemissions regulations; and for some substances we haveenacted our own voluntary requirements. In FY2009, wewere not involved in any environmental accidents,
violations, fines or complaints; nor were we subject to any
legal actions with regard to any such incidents.

EHS seminar in Taiwan■ Goals and Results for EHS Activities in FY2009
Results for FY2009

Achievementlevel

EHS internal audit

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

Conducted an audit at one site with an additional
supply chain-related audit item and madecorrections based on the findings

EHS Management○

Achieve the TEL Roadmap* targets,formulate standards for achieving
the Technology for Eco Life
commitments, and promote thenecessary activities

Achieved progress in formulating standards forrealizing the Technology for Eco Life commitments○

Energy-saving
equipment

Encouraged application to existing equipment○

300-mm products: Achieved the FY2010 targets for
two of the six products○

Product-related
initiatives for theenvironment

Plans and goals for FY2010 onward

Related pages
pp. 12−13

Clarify in detail the standards forrealizing the Technology for Eco
Life commitments; and promote
the necessary activities

pp. 16−17○

Increase the number of products incompliance; continue to examine
regulations and implement
measures for compliancep. 18

Promote modal shift in Japan andoverseas in order to achieve theTechnology for Eco Life
commitments; improve packaging
methods

p. 19

Clarify the roadmap for achieving
the Technology for Eco Life
commitments, along with thedetails to be implemented, andimplement themp. 20

Measures to reduce
the use of regulated
chemical substancesin equipment

Achieve the TEL Roadmap* targets(compliance and support inpreparation for shipment beginningin October 2008)

Began shipments in October 2008.

Measures to reduce
Logistics initiatives the burden on thefor the environment environment in thearea of logistics

Formulate standards for realizing theTechnology for Eco Life
commitments; and promote thenecessary activities

Clarified the achievement standards and ran asimulation for goal achievement; accurately
assessed the logistics volume in Japan andpromoted modal shift; began proposing a modal
shift to customers for overseas exports○

Reduce energy consumption(1% decrease in CO2 emissions per unitof sales, as based on the Act
Concerning the Rational Use of Energy)

Electricity usage declined by 7.6%, but the total
CO2 emissions increased by 2.6% and emissions
per unit of sales also deteriorated, partly due to aworsening electricity coefficient×

Formulate standards for realizing theTechnology for Eco Life
commitments; and promote thenecessary activities

Clarified the achievement standards and beganconsidering the introduction of more energy
efficient equipment○

Waste reduction

Continue zero emission efforts at
manufacturing plants

Achieved zero emissions at manufacturing plants
The recycling rate of the entire Group was as highas that of the previous fiscal year○

Continue zero emission efforts andexamine reduction in the total
amount of wastep. 22

Reduction in thenumber of accidents
involving injuries orfatalities

30% year-on-year reduction in thenumber of accidents involving
injuries or fatalities

The number of accidents involving injuries orfatalities was reduced year-on-year by 18%, fallingshort of the target

×

Target a 30% reduction of accidents
involving injuries or fatalities in
FY2010, compared to the FY2009
level

pp. 24−25

Conserving energy
Environmental
activities at eachplant or office

Health and safety

SOCIAL REPORT

Continue to conduct audits

EHS REPORT

Goals for FY2009

Action item

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

TOKYO ELECTRON Environmental and Social Report 200913

EH S R E P OR T

The TEL Group has assessed the impact of its products on the environment throughout their entire lifecycle—
from procurement of major components, manufacturing and logistics to product use. Based on this assessment,
we established a goal for the year 2015 and are promoting measures to reduce environmental impact.

Technology
for Eco LifeMANAGEMENT REPORTHIGHLIGHT

50% Reduction in Environmental
Impact by 2015

50% Reduction in Environmental Impact by 2015

In May 2008, the TEL Group spelled out its environmental
commitments, under the environmental action slogan:“Technology for Eco Life.”
As part of these commitments, a goal was established todevelop products that will enable customers to reduce theoverall environmental impact at their factories by 50% andthe decision was also made for the TEL Group to seek toreduce the environmental impact associated with its
business and logistics activities by 50% by 2015. This page
provides an overview of the environmental impact withineach phase of the product lifecycle in FY2008, which is thebaseline of comparison for the 2015 goal, as well as
introducing activities related to reducing that impact, andinformation on TEL’s environmental commitments.

Material Procurement

Plants and Offices■ TEL procures from suppliers the materials and parts
necessary for its semiconductor and FPD production
equipment. In order to supply products that satisfy
customers, TEL is working with its suppliers to ensurethat procurement of materials is environmentallyconsiderate by comprehensively evaluating functions,performance, quality, price, and delivery lead-time.

■ Products are manufactured and assembled inside
clean rooms that are kept free of dust. TEL is
working to reduce environmental impact at its
plants and offices through measures that include
reducing the energy and resource requirementsof its clean rooms by improving operational
management of air-conditioners and introducing
energy-saving devices, conserving resources, andreducing the volume of waste generated.

■ Environmental impact in each product lifecycle phase in FY2008
CO2

Share of CO2 emissions in eachlifecycle phase (%)

SOCIAL REPORTEHS REPORTApprox. 200,000 tons of CO2

CO 2 emissions estimated by TEL

5%

Environmental impact
during material manufacturing

Energy use in plants and offices■ Steps that TEL Group is taking to achieve its environmental commitments
Lifecycle phase

Activity description

Steps being taken to achieve commitments

Material procurement

Working with suppliers to reduce regulated chemical
substances contained in suppliers’ products andreduce energy requirements for those products

Request cooperation from suppliers to achieve those reductions fortheir business activities and productsPlants and offices

Reducing CO2 emissions from plants and offices
through energy conservation measures

Logistics

Promoting a modal shift in Japan and overseas, andimproving packaging materials

Product use

14

115,000 tons of CO2

8%

Promoting reductions in the overall environmental
impact at customers’ factories by reducing theenvironmental impact of TEL’s productsTOKYO ELECTRON Environmental and Social Report 2009

Aim to reduce the total CO2 emissions per unit of sales from theGroup’s plants, offices, and logistics operations by 50% comparedto the 2007 level by 2015 (monitor goals and improvements forboth total emissions and emissions per unit of sales)
Develop equipment that will enable customers to reduce the overall
environmental impact at their new plants to be built in 2015 by 50%
compared to the 2007 level; establish comprehensive standards
on environmental impact (including energy usage by production
equipment, impact on facilities, chemical substances used insemiconductor production processes, and generated waste at
customers’ factories)

50% Reduction in Environmental
Impact by 2015

Tokyo Electron supports a strong global community and strives to achievea society in harmony with the environment.
We are committed to creating an environmentally-benign society together
with our customers by providing advanced technologies and services.

Tokyo Electron’s Commitment● 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
for completion in 2015 or later.

● We aim to reduce the impact of our business andtransportation activities on the environment by 50%, by
2015, compared to the 2007 levels.
● We will strive to achieve these commitments in partnershipwith our stakeholders.

Product use■ Manufactured products are kept clean andprotected against vibration and shock whentransported to customer sites via truck, ship, or
aircraft. TEL is aiming to reduce the impact on
the environment of its logistics operations byswitching to transportation means that have alower environmental impact.

■ Following installation and inspection, equipment begins to
be used to produce semiconductor devices and FPDs. TEL
is focusing on measures that will reduce the environmental
impact of each piece of its equipment during its use.
In addition, after equipment is sold, TEL takes steps toextend its service life through repair and maintenance,
and implements modifications that contribute to energy
conservation.

HIGHLIGHT

Logistics

MANAGEMENT REPORT81%
Approx. two million tons of CO2

145,000 tons of CO2

6%
Environmental impact from one-year use of the Group’s products(calculations assume the use of 300-mm systems)

TEL Group’s Input/Output

Input

OutputChangefrom
FY2009FY2008
Electricity 249.66 million kWh (-7.6%)

Changefrom
FY2008
Total product shipment 14,977 tons (-45.2%)

Gas

1,196 km3 (-19.1%)

Fuel2,319 kl (-11.2%)

Water

1,139 km3 (-3.6%)

Chemical substances 9.7 tons (-21.8%)

FY2009

Tokyo Electron
Group(Japan and overseas sites)

CO2

116,077 t-CO2 (+2.6%)

NOx

11.1 tons (-8.3%)

Wastewater

1,127 km3 (-3.7%)

Waste

10,774 tons (-12.5%)

SOCIAL REPORTThe figures on the right show the energy and resource
input/output at the Tokyo Electron Group’s manufacturing
plants and offices in FY2009. We accurately assess andanalyze the Group’s environmental impact and are striving
to reduce it through improvements in efficiency.
In FY2009, a substantial reduction in the volume of
shipments led to reductions in environmental impact fornearly all items. Our 2015 goal focuses on reducing CO2
emissions, but we will continue to reduce other types ofenvironmental impact as well.

EHS REPORT

Logistics operationsin Japan and overseas(regulated under the PRTR Law as Type I chemical substances)

Recycled amount 10,486 tons (-12.2%)
Paper (copy paper) 120 tons (-64.4%)
Amount of waste simply incinerated anddisposed of in landfills
288 tons (-21.3%)

TOKYO ELECTRON Environmental and Social Report 200915

EH S R E P OR T

SOCIAL REPORTEHS REPORTMANAGEMENT REPORTHIGHLIGHT

Product-related Initiatives
for the Environment

Product-related Initiatives for the Environment

16

The TEL Group strives to reduce the impact of its products on the environment through various improvements, suchas reducing energy requirements during the usage phase of a product’s lifecycle, which is the stage when most of
the environmental impact occurs, and minimizing the use of regulated chemical substances.

Initiative for Products with Less Environmental Impact during Use
Approach to Reducing the Environmental Impactof Our Products
We believe it is important to promote environmentallyconscious designs, as we have clearly stated in the TELGroup “Credo and Principles on Environmental
Preservation.” We give top priority to the provision ofenergy-saving equipment and to reducing or finding
alternatives for the regulated chemical substances
contained in our product’s.
Organizations for Reducing Environmental Impact
Two working groups are in place to promote our efforts to
reduce the environmental impact of our products: theChemical Substances Steering Team and the ProductWorking Team. The former team works to reduce orsubstitute the use of chemical substances subject toapplicable regulations in our equipment parts andcomponents. The latter, established under theEnvironmental Steering Committee, has developed aroadmap for each business unit to reduce its environmental
impact. In preparing the roadmap, the business units wererequired to address the following mandatory items:
reducing energy requirements in their products, addressing
chemical substance-related matters, reducing the numberof parts and processes required, reducing the use ofprocessing gases and liquid chemicals, and improving theenvironmental performance of existing equipment. In
addition, they were encouraged to cover voluntary items
such as reducing the number of processes required forequipment installation. Progress toward achieving thedefined goals is being reviewed under the Group’s mediumto long-term plans. In addition, in January 2009, the TELGroup held its 11th Technology Exchange Conference at theTokyo Electron Nirasaki Arts Hall, which included sevenpresentations on environmental technologies. A poster area
was also set up at the conference to enable the divisions
and departments to engage in a lively exchange of ideas
and information.

Tokyo Electron Group Internal Technology Forum

Energy-saving Measures for Products
We are examining measures to reduce the energy that our
products consume when used and have set the five
following targets: (1) Reduce energy used by the productitself; (2) Reduce energy used by peripheral devices; (3)TOKYO ELECTRON Environmental and Social Report 2009Manage the product in an energy-saving manner; (4)Reduce energy used by the clean room; and (5) Manage theclean room in an energy-saving manner (planned operationand proper management). The energy-saving managementof the clean room necessarily involves our cooperation withcustomers and facility manufacturers. Such close
cooperation will allow us to further reduce the energy
consumed by our products during their use phase. In
addition, we are advancing the policy of accurately gauging
the amount of energy consumption of devices that use
electricity, water, dry air, cooling water, and exhaust heat,
as well as supplementary devices (e.g. vacuum pumps andcooling equipment), by employing the SEMI S23*
guidelines.
*SEMI S23: A guideline for energy conservation for semiconductor
production equipment issued by the Semiconductor Equipment andMaterials International (SEMI), an international industry organization ofsemiconductor/FPD production equipment and material manufacturers■ Environmental Roadmap Items for Each Division
1. Reducing the energy requirements in our products
2. Addressing matters related to chemical
substances
3. Reducing the number of parts and processes
required
4. Reducing the use of processing gases and liquid
chemicals
5. Improving the environmental performance ofexisting equipment

ISMI Energy Conservation AwardAt the Energy Conservation Workshop held on October 20,
2008 in Austin, Texas, under the sponsorship of theInternational SEMATECH Manufacturing Initiative (ISMI),TEL received the 2008 ISMI Award for Excellence inEquipment Energy Reduction. The ISMI consists of 14
leading semiconductor manufacturers from Japan, theU.S., Europe, and Asia; and its mission is to improve theproductivity of semiconductor manufacturing. Receiving
the Excellence Award recognizes TEL’s efforts with regard
to energy conservation for its
products and serves to motivate
further efforts in this area.

ISMI Award for Excellence inEquipment Energy Reduction

A single-wafer deposition system is a device that uses heat and plasma to form
metal or barrier films. The system utilizes chemical vapor deposition (CVD) todeposit and form thin films. It uses a vacuum pump to maintain a vacuum state
inside its chamber. We were able to reduce the pump size to an optimal level byrethinking the entire vacuum-pumping system. As a result, the electricity usedby the pump itself was significantly reduced. Furthermore, the reduction inpump size lowered the space requirement, decreasing the amount of resources
required, which in turn reduced cost and improved productivity through ashorter exhaust time.

■ Improvement in Single Wafer Deposition System Trias™

Product-related Initiatives
for the Environment

Initiative for Single Wafer Deposition System

Use of a compact pump reduces
electricity usage by 50%.

New compact
pump

HIGHLIGHT

Conventional
pump

Improvements in Cleaning Systems■ Reduction in the IPA concentration in the exhaust
100%
81.6% reduction

MANAGEMENT REPORTWith regard to cleaning systems, TEL is implementing measures to reduce
VOC* emissions, which are considered one of the most important issues in thesemiconductor industry and are tightly regulated under Japan’s Air Pollution
Control Law. IPA (isopropyl alcohol), which is used in cleaning systems, isa volatile organic solvent. A large volume of IPA is used, and because of its
high volatility, its concentration level in the exhaust discharged tends to behigh. In order to deal with this issue, TEL installed an IPA scrubber that sprays
pure water, refrigerated cooling water, or tower-cooled cooling water, thereby
reducing the IPA concentration in the exhaust.

18.4%*VOC (Volatile Organic Compounds): A major cause of photochemical oxidants and suspended particulatematter, thought to cause pollution and damage health.

Beforeimprovement

After
improvement
EHS REPORT

Improvements in Coater/Developer■ LITHIUS environmental program

Reduced exhaust forprocesses

Chemical consumption
reduction

Direct exhaust of chamberStandby power reduction

SOCIAL REPORT

For its coater/developer, TEL is taking actions to reduce the environmental
impact from the systems that have already been delivered to customers.
Targeting the CLEAN TRACK™ LITHIUS™ Series released in 2004, TEL isoffering customers a package of six enhancements (including direct exhaust ofchamber, standby power reduction, separated and improved utilization ofcooling water, N2 reduction, and motor current reduction) as a LITHIUS
Environmental Program. We are also examining ways to cut the volume of resist
and developing solution used and also reduce exhaust for processes. Ourestimate shows that implementing all these measures would reduce the energy
consumption by approximately 15%. We are also looking to expand theseenhancements to include other systems, and are working on a VOC-reduction
program.

Separated and improved
utilization of cooling water
Motor current reduction
N 2 reduction

TOKYO ELECTRON Environmental and Social Report 200917

EH S R E P OR T

SOCIAL REPORTEHS REPORTMANAGEMENT REPORTHIGHLIGHT

Product-related Initiatives
for the Environment

Product-related Initiatives for the Environment

Initiatives Related to Regulated Chemical Substances in Products
Reducing the Use of Regulated Chemical
Substances in Equipment
Against the backdrop of growing concerns over the impactthat harmful substances contained in parts and materials
have on the environment and ecosystems, many countries
are working to regulate the use of such substances in
automobiles and electrical products. The TEL Group is also
promoting measures to reduce the amount of regulated
chemical substances contained in its products. One of thebest-known regulations on chemical substances is
Europe’s RoHS Directive1, which came into effect in July
2006. Although semiconductor and FPD production
equipment is currently exempt from the directive, we aretaking proactive measures to comply with it. We havealready met all of the requirements for China RoHS2, which
was issued in March 2007 and applies to TEL’s products.
In order to meet regulatory requirements in a prompt
manner, we established the Chemical Substances Steering
Team, made up of representatives from TEL’s headquarters
and manufacturing subsidiaries. The team sharesnecessary information and investigates the use ofregulated chemical substances in our products, incooperation with our suppliers, and also promotes
alternatives to replace regulated chemical substances. In
addition, the team uses a dedicated database to manage
the chemical substances contained in units and the parts
used in our products. In FY2007, we voluntarily developed
a timetable to phase out the use of the regulated
substances used in our products (excluding certain
products). We had been scheduled to begin shipping andincreasing products containing fewer regulated chemical
substances in stages from the second half of FY2009, with
98.5% or more of the products’ constituent parts meetingthe EU RoHS standards.
1 RoHS: Restriction of the use of certain Hazardous Substances in Electricaland Electronic Equipment
2 China RoHS: Officially name is “Management Methods for the Prevention andControl of Pollution from Electronics Information Products”■ Chemical Substances to be ReducedFirst Priority
Cadmium

Pigments, stabilizers, and resins

Hexavalent chromium

Chrome plating

Lead

Solders, paints, electrical wire coating, andfree-cutting metal

Mercury

Batteries and fluorescent lamps

PBBs

Resin parts

PBDEs

Resin parts

Second Priority
Substances designated as Level A substances in JIG*
(We have already implemented measures for many of thesesubstances)* The 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 whichconservation 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.

18

TOKYO ELECTRON Environmental and Social Report 2009

System to Reduce the Use of Regulated Chemical Substances
The TEL Group operates a chemical substancesmanagement system that can be used to register and view
information on the use of chemical substances according
to individual parts. This system allows us to check withease whether parts to be used in our products containregulated chemical substances or not, and control the
manufacture or shipment of products containing chemical
substances regulated by the EU/China RoHS and other law.

Dedicated database screen

Activities to Reduce the Use of Other Chemical Substances
With regard to chemical substances, most nations havebegun to implement the Globally Harmonized System ofClassification and Labeling of Chemicals (GHS)1 based on arecommendation from the United Nations. In order tocomply with this system, the TEL Group has begun toobtain the chemical substance safety information (e.g.,
MSDS) classified and created according to the GHS andhas made it available within the Group, and has also begun
distributing labels for chemical substance containers.
In Europe, companies will be increasingly required tofulfill their responsibilities as manufacturers and follow the
principle of taking precautions, under such regulations as
REACH2 (which mandates evaluation, registration,authorization, and restriction of safety information on
almost all chemical substances sold on the market), the
new Batteries Directives3 and the PFOS 4 Directives. All of
the TEL Group departments are making concerted efforts
to comply with these regulations, from those departments
engaged in product development, design and manufacture
to procurement, quality assurance, and environmental andsafety performance. We will also explore optimal
management of chemical substances by participating in theactivities of JAMP5 and other forums.
1 GHS: A globally harmonized system related to classification and labelingof chemicals, which provides globally standardized rules by harmonizing
various countries’ classification standards in terms of harmfulness andtoxicity of chemicals, labeling standards, and MSDS details.
2 REACH: Stands for “Registration, Evaluation, Authorization and Restrictionof Chemicals”; it is a set of rules related to the registration, evaluation,authorization, and restriction of SVHC (Substances of Very High Concern) in
particular. Manufacturers are required to provide information on the SVHC
contained in their products, as well as information to ensure the safe use of
their products.
3 The EU’s new Batteries Directive: Regulates the disposal of batteries thatare collected from used electronic and electric devices in compliance with
WEEE. It also requires labeling with a designated recycling mark to facilitatecollection and recycling.
4 Perfluorooctanesulfonic acid (PFOS) has the property of being waterrepellent and waterproof and is used in resist, metal coating, and grease oil.
The EU’s directive, which came into effect on June 27, 2008, prohibits the useof PFOS in quantities larger than those designated (with some exceptions).
In Japan, a revision in the Chemical Substances Examination and Regulation
Law will place a total ban on the use of PFOS (resists and other products are
exempt from the law with some restrictions).
5 JAMP: Joint Article Management Promotion-consortiumWe also estimate that our export-related logistics
activities emitted approximately 140,000 tons of CO2 in
FY2008 and 30,000 tons in FY2009. In FY2009, reductions
in our total sales volume, coupled with an increase in thepercentage of FPD production equipment, most of whichuses marine transport, led to a sharp reduction in our CO2
emissions. We estimate that increasing marine transport to
60% of our total transport needs would enable us to meetour goal; and therefore we plan to suggest to ourcustomers that they switch to marine transport and alsoplan to optimize packaging methods.

■ Percentage of overseas shipments thatuses marine transport (%)
17%
40%
FY2008 actual

60%
83%
Air transport

Green Packaging
Products of the TEL Group are precision machines, whichmeans that they require special packaging to maintain theirprecise and clean condition. We use wooden frames andsteel-reinforced corrugated cardboard as packaging
materials. As a measure to reduce the resources used inpackaging, we have begun using reusable corrugatedcardboard boxes when shipping large parts to customers
inside Japan. After the parts are delivered to customers,
the reusable packaging materials are returned to us forreuse. We also collect casters used for moving products
and bring them back to our plants for reuse, thereby
reducing resource usage.

EHS REPORT

Environmental Impact from ProductTransportation
In FY2009, TEL transported 16.91 million ton-km of freightin Japan (on a non-consolidated basis), resulting in 2,956
tons of CO2 emissions. In FY2009, marine transport
accounted for 15.7% of the total freight volume, which wasa significant jump from FY2008. Some of the contributing
factors behind this increase included the use of new
shipping routes and an increased use of ships fortransporting FPD production equipment, which isparticularly heavy. We estimate that this modal shift helped
reduce CO2 emissions from our logistics activities by 430
tons.

Marine transport

MANAGEMENT REPORT*Modal shift: A shift in the mode of transportation (e.g. switching fromconventional freight transportation by truck or aircraft to marine and railtransportation)

FY2016 goal

HIGHLIGHT

Approach to Environmental-friendly Logistics
In terms of logistics-related environmental initiatives, we
set up the Logistics Working Team under theEnvironmental Steering committee, and the relevant
divisions and departments have created action plans andare implementing them.
In April 2006, Japan’s Act Concerning the Rational Useof Energy was revised and regulations on logistics were
strengthened, with the aim of reducing global warming.
Accordingly, there is now greater demand for reducing theenvironmental impact of logistics operations. In response,
the TEL Group has been actively reducing theenvironmental impact caused by the transport of its
products. For example, we are making a modal shift* fordomestic and overseas transport and adopting packaging
methods with less environmental impact.
CO2 emissions from the TEL Group’s logistics activities
were estimated to account for 6% of the total CO2
emissions in the lifecycle of our products in FY2008, whichis still a significant amount. We will continue to promotemeasures to reduce emissions in order to achieve ourenvironmental commitments.

Product-related Initiatives
for the Environment

Logistics-related Initiatives■ CO2 emissions from logistics operations inJapan and trends in the percentage of marinetransport(Tons)

(%)

4,712

2,956

SOCIAL REPORT

15.7

Reusable corrugated cardboard packaging

2.7
0

0
’08
CO2 emissions

’09

(FY)

Marine transport
TOKYO ELECTRON Environmental and Social Report 200919

Plant and Office Initiatives for the Environment

EH S R E P OR T

Plant and Office Initiatives for the Environment
The Tokyo Electron Group is proactively undertaking various initiatives at each of its business sites to reduce
environmental impact, including measures to help prevent global warming, conserve resources, reduce waste, andstrictly manage substances. Some of the activities at manufacturing sites (plants) and offices are discussed below.

Measures to Help Prevent Global Warming
Reducing Energy Consumption
The TEL Group is working to reduce energy consumption in■ Electricity Consumption ■ Heavy Oil and Kerosene
Consumption(Million kWh)accordance with the provisions of the Law concerning the(kl)

12.6 19.2

Rational Use of Energy. Each business site has establishedspecific targets for air conditioning temperature settings
and for cutting power consumption for lighting and office239.6

equipment; and they are taking active measures to reduce

16.5 9.9

12.5

942

260.2
247.2
237.1

energy consumption. Tokyo Electron U.S. Holdings, Inc.
0

’05

’06

Japan

FY2009, the company has purchased approximately 57

’07

’08

1,169
1,014
1,160

1,838
1,665
1,604
1,444
1,159

234.5

has been purchasing green electricity since 2001. As of

1,146’09 (FY)

0

’05

’06

Heavy OilOverseas’07’08’09 (FY)

Kerosenemillion kWh of power, resulting in an approximate 3,500-

HIGHLIGHT

ton reduction of CO 2. Manufacturing sites in Japan are also

■ Gas Consumption(Thousand m 3)

taking measures to reduce energy consumption for372

cleanrooms, which account for a substantial portion of
total energy usage. One example is the effort to conserve
energy at the Tohoku Plant, which has reduced cleanroom
energy consumption by approximately 40%, while738

maintaining the same degree of cleanliness. We haveadopted a policy of further accelerating such measures to

0

MANAGEMENT REPORT

fulfill our environmental activity commitments.

EHS REPORT

116

154

838

946

994

943

56

110 113 131 137

’05

’06

’07

’08

’09 (FY)

LPG (Japan)
Processed natural gas (Japan)(Business sites in Japan and overseas)
Processed natural gas (overseas)

Energy Consumption and CO2 Emissions
For our energy consumption in FY2009, electricity usage
declined by 7.6% and heavy oil usage dropped by 19.7%,

Reducing the Use of Greenhouse Gases Other

thanks to energy conservation measures conducted in all

than CO2

regions and a decrease in production activities. CO 2

In developing our manufacturing processes and evaluating

emissions from energy consumption, however, increased

equipment (e.g., dry etching and cleaning processes) weby 2.6% because of a change in the electric poweruse hydrofluorocarbons (HFCs), perfluorocarbons (PFCs)

coefficient. Unfortunately, CO 2 emissions per unit of sales*and sulfur hexafluoride (SF6 ), which are greenhouse gases.

did not achieve the target of a 1% year-on-year reduction

In FY2009, we used 9,987 tons of greenhouse gases (CO 2

because of the decrease in net sales. We remain committed

equivalent), which is a slight decline from the 10,610 tons

to reinforcing our energy-saving measures.

used in FY2008.

* Energy consumption per unit of sales=Energy consumption ÷ Sales■ CO2 Emissions from Energy Consumption(t-CO2)■ Greenhouse Gas Consumption
(%)

192.1

30

(t-CO2)

7,335 8,335

7,405 6,449
105,834 182.9
104,246
102,977
107,742

SOCIAL REPORT

104,110

95,486
95,48784,761

89.3

0

100.1

94,00965,81718
96.1

92.1 87.0 90.8

78.4

22.5 20.7 18.0 16.4 16.4

13.0 12.5

’00

’02

’07

’03

’04

’05

6,740

79.3

14.9 11.7’01

13,863

’06

’08

22.8
’09 (FY)

0(Business sites in Japan and overseas)
CO 2 emissions (overseas)
CO 2 emissions (Japan)
Energy use per unit of sales compared to previous FY
Energy use per unit of sales

20

TOKYO ELECTRON Environmental and Social Report 2009

0

3,106

11

56
19
6,682

4,350

4,681

6,297

770
3,586

3,506

3,204

3,051

1,856 1,284
1,468 1,140

3,236
784
322 1,620

3,607

3,045

2,580

’03

’04

’05

’07

’08

’09 (FY)

HFCs

PFCs

SF6

’06
Others(Business sites in Japan)

Moving forward, we will continue to reduce the amount

Our Approach to Resource Conservation
The TEL Group is working to minimize our use of limitedof copier paper used and also minimize paper-based

resources. Specifically, we are reducing the use andrecords and accounting forms to further reduce our totalpurchase of copier paper and stationery and implementing

paper consumption.

green procurement practices, giving preference toenvironmentally-conscious products.
We have replaced printer toner cartridges with ones

Plant and Office Initiatives for the Environment

Initiatives to Conserve Resources

made from recycled materials and cooperated with the
manufacturers in the recovery of end-of-life cartridges. At

A poster encouraging employees
to use their own cups

some offices, we have established an intranet-based
system, under which extra stationery can be used by other■ Copier Paper Consumption

across the organization. In addition, a proactive effort is(Thousand sheets)

made to donate excess office supplies, shelves, and the like

18,617

to local governments and non-profit organizations.

18,184HIGHLIGHT

departments, thereby promoting the reuse of resources

16,135

17,417
16,03813,483

Continuing our donations from 2008, in March 2009 theGroup donated 10 used laptops to Aizu Technical High77,168School and to Kitakata Technical High School, which are

69,45076,800 69,814 77,992 70,936
8,647

member schools of the Aizu Craftsmanship Training Projectin Japan.

21,362’03
Plants

’04

’05

’06

’07

Office facilities’08’09 (FY)(Business sites in Japan)

Efforts to Reduce Water Consumption

Ceremony for donation of laptops

consumption. Our employees are encouraged to practiceduplex copying, to copy at a reduced size, and to digitize
information and internal circulars. As a result, the Group’s
total use of copier paper in FY2009 dropped dramatically■ Water Consumption(Thousand m3)

year-on-year by over 60%, equivalent to about 50 million
88
62

sheets. It is thought that one of the major factors behind

107
64

474

needed, corresponding to the decline in shipments.

70
106

115
92

111
22
599

486

437

506

415

357

391

382

’03

’04

’05

’06

48 2
65 1
599

575

531

498

We are encouraging the use of environmentally-friendly
paper and conducting activities that lead to resource
conservation by introducing products such as paper cups
working to raise employee awareness so that they use
fewer paper cups and bring their own cups to work.

0

Industrial water

Tap water

Groundwater

Overseas use

429

SOCIAL REPORT

the decrease is the reduction in the amount of documents

made from a bamboo-derived material. We are also

EHS REPORT

Efforts to Reduce the Use of Paper
We are making a group-wide effort to reduce paperAt our manufacturing plants, various measures areunderway to reduce water consumption. For example, theplants have installed a water re-circulating system to reusecooling water. They have also installed automatic faucets in
restrooms and other facilities. These touch-free automaticfaucets prevent water waste by automatically shutting off
the supply when the user’s hands are removed from thesensor range. In FY2009, water consumption fell byapproximately 3% because of lower production.

MANAGEMENT REPORT

0

’07
’08
’09 (FY)(Business sites in Japan and overseas)

TOKYO ELECTRON Environmental and Social Report 200921

Plant and Office Initiatives for the Environment

EH S R E P OR T
Plant and Office Initiatives for the Environment

Initiatives for Reducing Waste
Our Approach to Waste Reduction and Recycling
The TEL Group strives to reduce and recycle waste. We

from the chemicals used in the product-development andwork according to our firm policy of minimizing waste firstcurrently being recycled.

evaluation processes, but 99% of that liquid waste is

and foremost, recycling whatever waste is generated to thegreatest extent possible, and disposing of non-recyclable■ Recycling Rate and Generation of Waste

waste in a proper manner.

(Tons)

3,938
3,657

In recent years, landfill costs have surged due to a

96.4 97.3 97.0 97.3 (%)

3,268

3,179

shortage of sites, which means that waste reduction also

93.1 96.1

77.4

leads to cost reduction. We separate recyclable waste from

69.7

non-recyclables, use new manufacturing processes which

55.2

59.9

do not involve waste generation, manage the qualificationsof contract waste disposal companies, periodically review

847

HIGHLIGHT

final waste disposal practices, and also focus on
educational activities related to the sorting of waste and431 469 414 366 288
0

0
’00

other topics. For instance, the department that handles
single-wafer deposition systems at our Yamanashi Plant

’01

’02

’03

’04

’05

’06

’07

Incineration and landfills (Business sites in Japan)
Recycling rate

’08

’09 (FY)
Volume of waste

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

adopted the slogan of “Let’s become sorting experts” andworked to make employees aware of the costs of■ Breakdown of Waste

processing waste by preparing a table with sorting

1%

MANAGEMENT REPORT

standards and the costs of processing waste (e.g., generalwaste, mixed paper, classified documents, and plastic

4%
6%bottles) as well as the sale prices of eleven types of

6%

valuable materials (e.g., high-quality paper and cardboard),

9%

FY20099%65%

while also preparing materials using animations to explain

Liquid waste
Metallic/product waste
Plastics
Paper
Wood scrap and Packaging materials
Drink containers
Othersorting techniques. Some business sites have begun using
electronic manifests to ensure proper management ofwaste materials.
Zero Emissions
We define plants where less than 2% of waste generated isincinerated or put into landfills as “zero emission plants”
クリーンオフィス2008

EHS REPORT

紙類の分別
お金がもらえる

お金がかかるand encourage all plants to achieve zero emissions. In
FY2009, all of our manufacturing plants strived to attainthis goal; and they achieved zero emissions.

処理
費用• 非機密の普通（再新聞紙のみ生）紙・再生可能
CR紙（ダンボールとは、• カタログ
波型の中心を2枚の• コピー用紙の包装
厚紙で挟んだもの。
1枚だけのものは紙
ボール紙-＞「紙く （広告・チラシは、• カレンダー「紙類・雑誌・カタロず」へ）• フラットファイルのグ等」へ）
表紙• ワックスコート紙• 感熱紙
ダンボールのみ

Educational materials
on sorting waste•ポストイット•JRのチケット•はがき•封筒• お菓子の紙箱• ボール紙• 再生不可CR紙・
OHP機密文書（シュレッダーすること）• ティッシュ• セロテープの芯• のし袋の飾り• ティーパックの個別包装紙• 紙コップ• 普通紙/再生可能
CR紙の機密文書

機密文書

シュレッダーすれば紙くずへ廃棄可でお得！

もらえるよ！

■ Recycling Rate of Waste for the Group’ Plants
in Japan

SOCIAL REPORT

Plants99.2%

Volume of Waste Generated, Recycling Rates,

Miyagi (Matsushima) Plant

98.4%

and Classification of Waste

Sagami Plant

99.4%

In FY1999, the TEL Group set the target of increasing its

Yamanashi Plant (Hosaka area)

100%

average recycling rate to 95% by FY2006. In FY2009, as a

Yamanashi Plant (Fujii area)

100%

result of recycling measures, the recycling rate was 97.3%;

Kansai Technology Center100%

and compared to the previous year incinerated and landfill

Saga Plant

99.9%

Koshi Plant

100%

Ozu Plant100%

waste fell by 21% and total waste (including recycled
waste) declined by 13%. The largest percentage of waste
generated by the Group comes from liquid waste resulting

22

Recycling rate

Tohoku Plant

TOKYO ELECTRON Environmental and Social Report 2009

Note: Rate of recycling of industrial waste (including industrial waste subject
to special control)Plant and Office Initiatives for the Environment

Management of Chemical Substances
Our Approach to the Management of Chemical Substances
The TEL Group uses chemical substances mainly indeveloping and manufacturing products. When developing
products, we sometimes adopt new chemical substancesthat have not been used before, or use chemical
substances in a way that is different from their traditional
usage. In such cases, we look closely at the development
facilities and methods, assess the environmental andoperational risks associated with the use of thesubstances, and implement necessary measures before
using the substances. We are also replacing dangerous andharmful chemicals used in the manufacturing process withsafer substances.

*PRTR: Pollutant Release and Transfer Register. Under the PRTR system, the useof chemical substances that may be hazardous to human health and theecosystem, their release into the environment, and transfer (contained in waste)
outside of the business premises are identified, tabulated, and disclosed.

■ Material Balance of Chemical Substances
HIGHLIGHT

Compliance with the PRTR* Act
In accordance with the provisions of the Act on Confirmation,etc. of Release Amounts of Specific Chemical Substances inthe Environment and Promotion of Improvements to theManagement Thereof (PRTR Act), we rigorously control the
specific chemical substances regulated under the PRTR Act
and continually identify the use and emissions of those

substances. Among the substances regulated under the PRTR
Act, we use a large amount of hydrogen fluoride, mainly forcleaning test wafers. The hydrogen fluoride waste is either
disposed of by an external company or we dispose of it in an
approved manner within our premises. Ethylene glycol, which
is primarily utilized as a refrigerant for cooling water, isanother heavily used regulated substance. Moving forward,
we will continue to appropriately monitor risks, whileadvancing our response to the PRTR Act. We will continue toproperly manage all risks associated with the use of chemical
substances.

Regulated under the PRTR Act
Released into the air: 0 kg/year Release into water: 2 kg/year

TEL

Handled
9,693 kg/year

Products
163 kg/year■ Handling of Substances Regulated as Class I
Designated Chemical Substances under the PRTR Act(kg)

Waste:
6,122 kg/year

1,221

759

On-site landfill:
0 kg/year

Removed:1,800 kg/year

Transferred to sewage: 15 kg/year

1,439
9,144
6,353

577
2,800

4,558

3,553

4,811

’04

’05

’06

9,844

2,108
1,359
3,962

1,607
1,459
1,200

4,118

5,021

5,427

’07

’08

’09 (FY)(Plants in Japan)

0
Hydrogen fluoride and its water soluble salts
XyleneOther

In Focus

EHS REPORT

Ethylene glycol

PCB Storage
Based on the Law Concerning Special Measures against
PCB Waste, we report on the storage and disposal of waste
containing polychlorinated biphenyl (PCB) to theprefectural governor on an annual basis. The TEL Group
presently stores two waste transformers and four waste
capacitors that contain PCB in a strict and secure manner.

MANAGEMENT REPORT

Recycled: 1,591 kg/year

4,578

Risk Communication with Local Communities

TOKYO ELECTRON Environmental and Social Report 2009

SOCIAL REPORTAll of our business sites that use chemicals conduct rigorous management toprevent leaks and other mishaps. We believe that it is extremely important togain the understanding of residents of communities located near those businesssites, with regard to our activities, in order to give them peace of mind.
The Tohoku Plant held a community meeting to report on environmental
issues on October 31, 2008, attended by a total of 40 people, including residents
living in the vicinity of the plant (such as representatives of neighborhood associations) and representatives of local
businesses and administrative agencies. The meeting was intended to share information concerning environmental initiatives
and build partnerships for developing mutual understanding, as part of a joint effort to help preserve the environment. Afteran explanation that provided them with an overview of company, the participants toured plant facilities (including the liquid
waste processing building) and observed the manufacturing lines. Later, the participants had the opportunity to makecomments and express their opinions. One participant said: “I feel better knowing that the smoke coming from the cooling
tower is actually steam”; while another commented: “I am grateful that Tokyo Electron Tohoku established a site at MizusawaEsashi and is contributing to the economic development of the community.”23

EH S R E P OR T

Health and Safety

Health and Safety
The Tokyo Electron Group promotes a variety of measures to contribute to the healthand workplace safety of everyone associated with the Group.

Our Approach to the Safety of All■ Injury accident classification

As part of our CSR activities, the TEL Group places a great

11%emphasis, on the health and safety of its customers,

4%

employees, and everyone else involved in our business, in

Ergonomics-related
Bruises
Lacerations
Falls
Exposure to liquids
Other

35%

11%

order to contribute to workplace safety, safe products, andFY2009the healthy lives of our stakeholders.

14%

Ten years have passed since the TEL Group, in

25%

December 1999, added a section entitled “Health, Safety,
and Environment” to its management philosophy, based on
our belief in the crucial importance of health and safety.
And that belief remains a key aspect of our EHS activities.
We also believe that dealing with the issues of health,

HIGHLIGHT

safety, and the global environment leads to positive
business results. Our commitment to profit and delivery
times should never take precedence over human life or thesafety of our facilities andequipment. In order to for all of■ Frequency of Occupational Accidents andNumber of Injury Accidents(Number of injury accidents)(Frequency)
1.95 1.90
1.83 1.75
1.77 1.78 1.85
47
43
41
39
37
1.12
1.09
0.98 0.98 0.99 1.01 1.02
28
23
20

our stakeholders, including

0.36

0.35

customers, to gain a better
understanding of that concept,

EHS REPORTMANAGEMENT REPORT

and of the Tokyo Electron Group’s
approach to safety, we havecreated a booklet entitled “SafetyFirst Initiative” and have been
Safety-First Initiative
bookletdistributing it to our stakeholders.

0

0.15
’03

0.39

0.40

0.39

0.32

0.24
’04

’05

’06

0.37

0.39

0.18

0.19

’07

’08

SOCIAL REPORT

0.29
’09

0.0
(FY)

Number of injury accidents that occurred in the TEL Group
Average for all industry accidents in Japan
Average for Japan’s manufacturing industry
Japan’s electromechanical manufacturing industry
Target for the number of injury accidents
TEL Group
Note: The number of injury accidents is shown, taking the number in FY2001 as
100.
Frequency of occupational accidents: based on the number ofoccupational accidents per one million labor hours

Preventing Accidents
In FY2009, the TEL Group achieved a 18% year-on-year
decline in the number of injury-related accidents (excluding

Safety Education
Since July 2000, the TEL Group has been promoting theminor accidents), due in part to the decline in sales andconcept of safety education throughout the entire Group.

product shipments compared to the previous year,

For example, we have created a textbook for Groupalthough this result fell short of the goal of a 30% year-on-

employees that is used as a tool for conducting basic safety

year reduction. An analysis of the injury-related accidents

education; and we provide more advanced safety educationthat occurred in FY2009 revealed that a large percentage offor our technical employees, such as those who work in

accidents and minor injuries were related to ergonomics,

cleanrooms. Our educational efforts make use of the SEAJ

so the focus in FY2010 will be on preventing those cases.

recommended service safety training textbook, created by

In Focus

24

0.48

Placing of Environment and Safety Idea Box
With the goal of incorporating employees’ ideas into future environmental and safety initiatives, weplaced Environment and Safety Idea Boxes and encouraged all employees to submit theirenvironment- and safety-related suggestions. The suggestions, which were made during a period
limited to three months, were submitted anonymously to ensure that employees would be able toprecisely describe problems. Many suggestions were received, spanning a wide range of topics,
from ideas on improving the workplace environment (related to air conditioning, etc.) to thoseconcerning methods for safely transporting heavy objects. The suggestions that employees made about conserving
resources and energy at the workplace, and making the workplace more comfortable, were very valuable, and will beincorporated into our future environmental and safety activities.

TOKYO ELECTRON Environmental and Social Report 2009

performed near large openings in the floor and in highplaces as well as work involving heavy lifting. Furthermore,

Health and Safety

safety seminars in order to prevent accidents during workin the case of accidents that cannot be easily describedthrough words or illustrations, we are employing 3D virtual
reality technology to realistically reproduce a visual imageof workplace accidents, thereby providing an overview of
the accident, its cause, and the sequence of communicationthat took place. In this way, trainees can see, hear, and feel
Advanced safety education

the actual measures that were implemented. We are alsoplanning to share these accident descriptions and(SEAJ); follow that textbook’s guidelines; and include

statistical data with others in the industry. We believe thathands-on training during the first educational session. In

these activities will lead to improved safety awarenessthe case of the SEAJ guidelines the training received iswithin the industry as a whole, while also fostering avalid for three years, whereas the TEL Group divides theworkplace where engineers working at worksites

educational content into three separate sessions that arethroughout the world will be able to work safely andconducted online every year. We are aiming to raise the risk

comfortably, thereby fulfilling one of the TEL Group’s CSR-

awareness of those attending the course and provide them

related tasks.

HIGHLIGHT

the Semiconductor Equipment Association of Japan

with content that is useful for their everyday work
situations by including case studies of accidents or nearmisses that have occurred within the Group. Conducting
them at their convenience; and since their progress incompleting the course can also be tracked online,
supervisors can easily verify that the employees required to

Virtual reality image

take the courses are actually doing so. We are alsoplanning to include hands-on sessions in the courses.

MANAGEMENT REPORT

the safety courses online allows our employees to takeLearning from Past Accidents
In order to prevent the reoccurrence of accidents, the TELGroup provides an illustrated summary of past accidents

Accident
Summary
EHS REPORT

that have occurred within the Group. The Japanese andEnglish versions of the summary are distributed to
employees and also made available in our intranet to beshared globally within the Group. The summary is also
being used as a safety education tool for various types of

In Focus

TOKYO ELECTRON Environmental and Social Report 2009

SOCIAL REPORT

Promoting Health through Walking
As part of its effort to prevent lifestyle-related illnesses, the Tokyo Electron Health Insurance Society (HIS) is encouraging
employees in Japan, as well as their spouses and parents, to participate in a walking program. Participants set their own
goals, with a total of 600,000 steps or more in a 90-day period as the general guideline. Using pedometers provided by the
HIS, they can record their daily step counts and report the total to HIS. Those who achieve 600,000 steps receive a prize. In
FY2009, 2,252 people participated, of whom 71% achieved the 600,000-step goal.
Positive feedback was received from the participants, with comments such as: “The program motivated me to walk everyday”; or: “Using the pedometer to record my progress helped me adopt a lifestyle that is more focused on health.”25

Relationship with Employees
We are striving to foster a workplace that enables all of our employees to reach their full potential,
based on respect for their enthusiasm, autonomy, and willingness to undertake challenges.

Approach to Human Resources
The Tokyo Electron Group respects the autonomy of its
employees and their willingness to undertake challenges. In
order to be a corporate group that allows employees topursue their full potential, our workplace environment
ensures (1) Fair evaluation of employees who takereasonable risks in creative endeavors; (2)Fairness inhandling our personnel; and (3) Equitable compensation inorder to attract and retain the most qualified applicants andemployees.
Our personnel system is designed to motivate theorganization and help each employee achieve selfdevelopment. The system focuses on results and alsoemphasizes the process leading up to results. Our goal is tofairly evaluate employees’ total job performance based on
the following three main criteria: Competency in terms ofevaluating processes leading up to a result; the individual
employee’s mission; and performance based upon theemployee’s mission. The competency of an employee is a
way of measuring that individual’s growth in terms of theskills and abilities required for accomplishing a variety of

HIGHLIGHT

Relationship with Employees

S O C I AL R E P OR T

MANAGEMENT REPORT

tasks.
■ Concept of Our Personnel System
Company
Mission

Performance

Indicate company goals
and directions

Competency

Reward performance that
Offer careers and opportunities
helps the Company reach its goals to build skills needed to meetwith commensurate compensation
the company’s goals

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

EHS REPORTSOCIAL REPORT

Competency

Performance

Competency

Obtain expertiseand offer aprofessional attitude

Provide performance thathelps the company
reach its goals

Polish up on
professionalism toobtain higher salaries

Assisting Employees’ Career Development
The TEL Group provides support to its employees in
response to the wide variety of their career ambitions.
Once a year, employees fill out a “Self-Declaration
Questionnaire” to communicate their preferences regarding
job transfers or to discuss certain problems. These
employee requests are taken into consideration anddecisions on transfers are made. In addition, in order toprovide employees with opportunities to create their own
career paths and increase the vibrancy of the corporategroup, the Open Job Posting System was introduced. In
FY2009, this system successfully matched 36 eager andmotivated employees with appropriate hiring departments
within the Group, to which they were then transferred. On
top of that, eight employees in the general job category

TOKYO ELECTRON Environmental and Social Report 2009

Creating a Comfortable Workplace Environment
The TEL Group is committed to providing employees with a
comfortable workplace. As part of these efforts, we revised
our childcare leave system in April 2007 and introduced aparenting benefit program the following October. Under the
program, employees can now take extended periods ofleave for child care1 and choose to work shorter hours (onehour less than regular hours) for a longer period of time2. In
FY2009, a total of 57 employees took childcare leave. Our
regular employees are also eligible to receive financial
assistance when their children are born, turn three years
old, and enter elementary school or junior high school.
In addition, we have also instituted a “refreshment
vacation” system, which allows employees to take a twoweek to one-month holiday when their term of service hasreached 10, 15, 20, or 25 years. We are also taking active
steps to prevent on-the-job mental health problems, whichhave increased recently in Japan. For example, we haveenhanced our healthcare staff and are offering education
on mental health issues.
We also conduct an annual survey of employee
awareness of the TEL Values to gauge the degree to which
employees have assimilated those values, what effect they
have on their motivation, and the attitude of employees
toward their workplace and supervisors. The results of thissurvey are utilized to improve the workplace environment,
organizational management, and the personnel system.

Employees

26

were successfully promoted to management positions, inline with their wishes, after they were evaluated for thosepositions using an aptitude test.

*1 In the past, employees were eligible for childcare leave until their children
turned one year old (or 18 months in exceptional cases); however, now they
can take leave until the end of the April following the date on which theirchild turns 18 months old (or until their children are three years old in some
exceptional cases).
*2 Eligible employees can use this system until the end of the fiscal year when
their children graduate from elementary school; whereas in the pasteligibility was limited to those with children aged three or younger.

Raising My Child with Peace of Mind
Hiromi Maeno,
Information Systems Dept.
Tokyo Electron Ltd.

I was able to take a maternity/childcare leave from June 2007
until the end of March 2009. I had
originally planned to return to workat the end of July 2008, when mydaughter turned one, but I could not
find a nursery school for her so I took advantage of thecompany’s system and extended my leave. As a result, I
was able to stay home and focus on raising my daughter.
This gave me the chance to see her turn over for the firsttime, begin to crawl, and take her first steps. I am very
grateful to the company for allowing me to share this
precious time with my daughter.

Fostering Next-generation Leaders
TEL UNIVERSITY is also fostering the next generation ofleaders. This includes, for instance, the BLP Basic Course,which is designed for potential next-generation groupleaders among younger employees; and the BLP Advanced
Course, which is intended for mid-level managers who are
candidates for senior management positions. There is also
executive training for senior managers who are candidates
for executive-level positions. In this way, the TEL Group isselecting potential next-generation leaders from every levelof the organization and supporting their development.

HIGHLIGHT

Thoughts on Attending the BLP-B(Business Leader Course)
Yoshifumi Seo,
Software Engineering Dept.
Tokyo Electron Kyushu Ltd.

EHS REPORTWe all tend to spend each day
focusing on the narrow work-related
tasks to which we are assigned, but
by attending the selected courseand being exposed to the innovative
ways of thinking and ideas of the
instructors and other participants, I was able to realize
many things and had the chance to raise my own levelof motivation. Although individual participants work on
developing different products and there are differences inour business systems, we all share a common enthusiasm
as TEL Group employees; and we have also developed asense of unity. I am determined to work even harder toensure that my personal growth will help enhance myworkplace and our company as a whole.

MANAGEMENT REPORTTEL UNIVERSITYThe TEL Group established TEL UNIVERSITY in order toprovide our employees with opportunities for continual
learning, while at the same time fostering employees andenhancing their organizational abilities. TEL
UNIVERSITY is designed to provide employees with
opportunities to obtain the knowledge and skills
necessary for each to become a world-classprofessional. Additionally, TEL UNIVERSITY is useful indeveloping employees’ management capabilities andeducating the next generation of leaders. TEL
UNIVERSITY’s role is to help employees fully develop
their potential, while deepening their understanding of
the TEL Values, which constitute the motivational force
for the growth of the TEL Group.
TEL executives also attend TEL UNIVERSITY courses,
participating in lively discussions with employees on how
to address the issues facing the Group. Successful humanresource development requires employees that are
motivated to learn, as well as managers and a corporate
culture that support employee growth. Employees actively

learning at TEL UNIVERSITY and applying what they havelearned to their jobs and workplaces leads to the growth ofboth the individual employees and the organization as awhole. TEL UNIVERSITY is engaging in human resource
development that contributes to the growth of the TELGroup and also contributes to the advancement of society.

Relationship with Employees

TEL’s Basic Philosophy on Human Resource
Development
Based on the belief “employees are our precious treasure,”
the TEL Group fosters a spirit of learning among its
employees, characterized by the following three key
principles: (1) The workplace must nurture employees (sothat they grow through their work); (2) Self-motivation anda sense of responsibility are the basic requirements fordeveloping one’s talents and career; and (3) The company
must build a platform or framework that provides its
employees with the motivation to learn and the necessary
information and knowledge. We believe that education andtraining only bear fruit when maintained over an extended
period of time. For this reason, the Group is enhancing its
management organization while continually maintaining its
educational budget at the designated level.

■ Educational Framework
Cross-cultural andBasic education
Company-wide(requisite)

Management
courseBusiness leader
courseDirector training

Executive training

GroupLeader
training

BLP Advanced
CourseGlobalcommunication

SupportOJT/Career

SOCIAL REPORT

Program to support
self-study of English

Hands-onmanufacturing training

BLP Basic Course

English ability assessment test

Champion seminar

New employee education (joint seminar andindividual company education)

Management ofTechnology

Introduction

General skills

Younger level

Business skills

Mid-level

Class-by-class basic
education

Management
level

ProfessionalcourseCorporate manager
Company-wide baseline education

Seniormanagement
level

Class (requisite)

Specialized education Manager education Leadership training language training
Enhancement(selective)

Trainer/Mentor
system for freshmen

TOKYO ELECTRON Environmental and Social Report 200927

S O C I AL R E P OR T

We view our suppliers as indispensable partners in the effort to provide society with real value.
Therefore, we strive to facilitate mutual growth by maintaining excellent communication with our suppliers.

Approach to Procurement
As part of its corporate message, the Tokyo Electron GroupTEL Supplier Website

focuses on the following three items and strives to achieve

People:We respect people and provide value thatis meaningful to them.

Technology:

We strive to achieve the most advanced
technologies in the world.

Commitment: We promise to contribute to ourcustomers’, stakeholders’ and local
communities’ success through corporatesocial responsibility.

Technical
Sector

Supplier A

Procurement
Sector

Supplier B

Production
Sector

Security

TEL Group

Supplier C

Suppliers’ own systems

the goals related to them:
TEL’s own system

Relationship with Suppliers

Relationship with Suppliers

Suppliers

HIGHLIGHT

The foundation of these goals is our philosophy of“respecting people,” which has been TEL’s guiding principle

Strengthening the Supply Chain

since its inception. Applying this basic philosophy to our

In order to strengthen our supply chain, the TEL Group has

procurement activities as well, we have established thelaunched joint projects with our suppliers. In FY2009, forfollowing Basic Procurement Policy and are striving to fully

example, we held the annual presentation and discussion

implement it:on growth strategies and environmental initiatives,

MANAGEMENT REPORTTEL Group’s Procurement Policy
1. We will seek suppliers throughout the world andprovide them with opportunities for fair and equitablebusiness opportunities.

3. We will share our medium- to long-term vision with
our suppliers, pursue technical innovations and profit
based on mutual trust, and build partnerships that willcontinue to grow together.

EHS REPORT

A meeting with suppliers

Ensuring Future Growth
The semiconductor and FPD production equipment
industry, which constitutes a pillar sector of the TEL

Communication with SuppliersGroup’s business, is an extremely volatile market. TEL

The TEL Group uses EDI* for procuring parts and materials,

understands this market uniqueness as the opportunity forbut also operates its own website as a two-way tool forthe next growth, and commit to increase share and improve

communicating with suppliers. The website can be linked toour ability of development and manufacturing.

the internal systems of both the TEL Group and the supplier.

SOCIAL REPORT

term growth together in a new economic environment.”

2. We will conduct our procurement activities bycomprehensively evaluating functions, performance,
quality, price, delivery lead-time, service, and stablesupply.

4. We will comply with all legal and social codes of
the countries in which we conduct business, andengage in business transactions that are safe andenvironmentally considerate.

In pursuit of these goals, we have made many

Utilizing the various types of content on the website, data

improvements as a result of repeated discussions with ourand information required for day-to-day operations can besuppliers; and we will consider their future suggestions as

exchanged quickly and accurately in a paperless andwell, as we continue to work to create solid value for our

bi-directional manner. In addition, the website also makes

customers and ensure their growth along with our own.

delivery/receipt history and progress management visible,
thereby improving overall efficiency. For building thissystem, the Group has strived to put in place a secureenvironment that maintains a high level of security andallows for quick recovery after a system failure.
*EDI (Electronic Data Interchange) is a framework to electronically exchange
information among corporations that is related to commercial transactions, ina unified standard format.

28

addressing the specific topic of “Targeting medium to long

TOKYO ELECTRON Environmental and Social Report 2009

S OC I AL R E P OR T

The TEL Group seeks mutual development with local communities in Japan andoverseas through communication that fosters a relationship of trust.

Our Approach to Corporate Citizenship Activities

according to production drawings and then inspecting

At the TEL Group, one of our tasks is to contribute to thethem. We plan to continue this job-experience program insound development of society, while always adhering to

the future.

social laws and norms. Guided by this outlook, we engage
in a variety of activities in Japan and overseas as a good
corporate citizen. We will continue to build and maintain arelationship of trust with the local communities in which we

Corporate Social Responsibility (CSR)

Corporate Social Responsibility (CSR)

do business, while consistently aiming for mutual growth.
Plant Tours (Japan)
Tokyo Electron AT Ltd., Tokyo Electron PS Ltd., Tokyo
Electron Tohoku Ltd. and Tokyo Electron Kyusyu Ltd. invite

Job-experience program participants

their local neighbors to participate in plant tours in theTokyo Electron Kyushu Ltd. (TKL) has been planting trees

company’s operations. We received a great deal of positiveon Mt. Tawara in Aso. During the fourth year of the

feedback from participants, including those who said:

program, 211 people planted 1,000 trees. Elsewhere, in the“Even though I live not too far from the plant, I’ve never had

Kawachi district of Tosu city in Saga prefecture, TKL

an opportunity to tour it. So thank you for providing thisconcluded a Corporate Forestation Activity agreement withchance to see the plant”; or who said: “I see that the inside

Tosu city, and 49 employees and their family membersof the company is very clean and that you are very carefulplanted around 160 trees in the city. Over the next fivein handling your products. Thank you very much foryears, tree planting and undergrowth clearing are planned

enhancing communication with members of the local

for an area covering approximately 5,000 m 2 along thecommunity despite your busy schedule.”

Kawachi Dam in the northern part of Tosu city.
TEL is also planting trees in the U.S. For example, atTokyo Electron U.S. Holdings, Inc., headquartered in Texas,
and at TEL Technology Center, America, LLC, located in the

MANAGEMENT REPORT

Tree Planting (Japan and the U.S.)and ensuring that their neighbors are aware of the

HIGHLIGHT

hope of boosting communication with local communities

state of New York, employee volunteers are planting trees
at the sites where their offices are located.

EHS REPORTA plant tour

Junior High School Students Experience Real Jobs
(at the Sagami Plant, Japan)
Tokyo Electron PS Ltd. has been offering a job-experience

Tree planting in Kyushu

program that gives local junior high school students the
chance to see what it is like to work in a semiconductormore about the meaning of work and appreciate its
importance, while considering what occupations are best
suited to them. The program was held twice in FY2009,

Tree planting in the U.S.

SOCIAL REPORT

related business. The program allows the students to learn

with a total of eight students participating. After receiving
instructions on how to use different tools, students
performed various tasks, such as making actual cables

TOKYO ELECTRON Environmental and Social Report 200929

Corporate Social Responsibility (CSR)

Cleanup Activities around Yodo River (Osaka, Japan)
The TEL Group’s three business sites in the Kansai region
teamed up to clean up the Yodo River in Osaka City. This
activity was organized by the TEL Group jogging club,which trains on the riverbank. A total of 57 employees andtheir families participated. The participants were divided
into three teams, which competed with each other to see
who could collect the most garbage. The TEL Group iscommitted to continuing to make contributions to local
communities through such activities.

HIGHLIGHT

Corporate Social Responsibility (CSR)S O C I AL R E P OR T

New Employee Training in Kyushu Incorporates
Social Contribution Activities

results.

Activities in the United States
As a part of its outreach activities to contribute to local
communities, Tokyo Electron U.S. Holdings, Inc.
introduced a program that allows employees to spend up to
four hours every six months participating in volunteer
activities during their working hours. More than 60
employees have already taken advantage of the program toengage in activities that include supporting nursing-carefacilities, visiting local elementary schools to assist
children in math and science, and working with local nonprofit organizations.
The company also distributes information via its
intranet and newsletters on a variety of topics, such as carpooling, to encourage employees to take action in theireveryday lives to help the environment. In addition, thecompany is now promoting 4R activities, after adding the
aspect of “rebuy” to its former 3R activities (recycle,
reduce, reuse), and is encouraging employees to buy andsell unneeded items among themselves. Employees arealso being asked to bring to work recyclable items thatcannot be recycled at home (such as paper, cardboard,cans, glass and plastic bottles, batteries, and mobile
phones) so that they can be recycled by the company.

SOCIAL REPORTEHS REPORTMANAGEMENT REPORT

Volunteers clean up
the area around the
Yodo River

implementing activities centered on the topic of social
welfare. Activities included visits to child welfare facilities
and nursing homes for senior citizens, and volunteering towork at summer festivals or community blood drives. Many
members of the community expressed their appreciation
for these volunteer activities, which produced significant

30

Recently-hired employees
participate in social
contribution activities as apart of their training.
(Japan)Tokyo Electron Kyushu Ltd. has implemented activities
designed to contribute to local communities as part of its
new employee training.
During training conducted in FY2009, new employees
were divided into six groups, with each group planning andTOKYO ELECTRON Environmental and Social Report 2009

Volunteers help out at anelementary school

Recycling box for mobile phones

Comments from a Third-Party Expert

Fusako Matsuda
President, Environmental Economics
Institute, Inc.
CEAR Registered EMS Lead Assessor

I believe that economic downturn triggered by the financial crisis will
have a major impact on the real economy worldwide. The financial
performance of many businesses has taken a turn for the worse, andfirms with manufacturing facilities in particular are struggling amidst
an uncertain future outlook. Tokyo Electron, which conducts
business globally in Europe, the Americas, Asia and elsewhere, is no
exception; and in the fiscal year ended March 2009 it saw its groupwide consolidated net sales fall by nearly half compared to the same
period of the previous year and its operating income did not evenreach 10% of the previous year’s level. It was under thesecircumstances that I visited the Yamanashi Plant in Nirasaki City,
Yamanashi Prefecture to prepare my third-party comment. I visited
manufacturing sites, a cleanroom, and a water processing facility,
but the manufacturing site was surprisingly quiet, and I inferred that
it was not operating at full capacity. I got the strong impression thatthe semiconductor business is facing extremely difficult
circumstances. Reading this report, however, I did not get any senseof desperation. On the contrary, throughout the report I perceived adetermination by senior management to use the current economiccrisis as a springboard to make capital investment in environmentrelated businesses and conduct research and development, with aneye to the future; and this attitude made me feel reassured.
The TEL Missions announced in FY2009 focus on innovation,
growth, and the environment, conveying a powerful message ofdevelopment, centered on new businesses in the environmental andclean energy fields, as well as tasks such as reducing theenvironmental impact of semiconductor and FPD production
equipment and developing photovoltaic cell production equipment. In
response to the announcement, this year’s report shows that there
are more activities related to the prevention of global warming andthe management of chemical substances. One example is the movetowards specific medium- and long-term environmental targets. The
TEL Group has set targets to develop equipment that will make itpossible to halve the total environmental impact of customer plants
and also halve the environmental impact from the business activities

of its own plants and offices and from logistics by 2015. Of
particular note is the Group’s effort to identify which processes in
the lifecycles of leading products (including materials procurement,
manufacturing, logistics and product use) generate the greatest
volume of CO 2, with FY2008 as the baseline year for comparison,
thereby making targets and the content of activities visible. The
Group’s plants and offices account for only about 5% of total
emissions, while use of its products at customer plants accounts forabout 80% of the total, which underscores the key importance for
the Group of reducing the energy customers’ consume when using
those products.
Another significant development is the reinforcement of thephotovoltaic cell production equipment business. The transition to a
low-carbon society through the use of renewable energy has become
one of the most important global issues. Technological innovations
are needed to improve photovoltaic cell energy conversion rates andreduce costs. By conducting joint development with leading
manufacturers and collaborating with key photovoltaic cell
production equipment manufacturers around the world, the Group
has adopted the proactive stance of developing new business by
combining its own original expertise and the technologicalcapabilities that it has accumulated as a production equipment
manufacturer.
In addition to these environmental initiatives, the Group hasbolstered the content of its social activities in such areas as healthand safety, internal and external communications, human resource
development, supply chain management, and activities as acorporate citizen; and it deserves high praise for its efforts toenhance its own visibility and transparency vis-à-vis the public. In
the future, I would like to see more comments from employees andbusiness partners, as well as more examples of specific activities
concerning the efforts to reduce environmental impact and the social
activities by overseas group companies in the U.S., Europe, and Asia
from the perspective of having the TEL values shared by Group
employees throughout the world. I expect even greater progressfrom Tokyo Electron as a leading company that is charting the course
to a future wherein theenvironment drives
economic development.

Ms. Matsuda toured the
TEL Group’s Yamanashi
Plant in preparation forwriting her third-party
comment

Response to the Third-Party Comment
I would like to express my deep appreciation to President Fusako
Matsuda of the Environmental Economics Institute, Inc. for visiting
the Yamanashi Plant, one of the TEL Group’s development andproduction sites, in July 2009; and for making the effort tounderstand our environmental initiatives. We will endeavor to include
more specific information on the environmental activities of overseas
group companies in Europe, America, and Asia in future reports, as
she recommended. We are committed to working towards achieving

our medium-term target of halving environmental impact by 2015, by
focusing on innovation, growth, and the environment; and topreserving the corporate DNA of the TEL Group, which is based onrecognizing what society truly needs and meeting those needs in astraightforward manner.
Satoshi Saito, Director
Environment, Health & Safety CenterTokyo Electron Ltd.

TOKYO ELECTRON Environmental and Social Report 200931

The Tokyo Electron Group held the TEL Eco-Life Painting and Photo Contest from April to June 2009 as part of its activities to raise
environmental awareness.
The photographs and paintings above are some examples of the submissions received from Japan and other countries.

™

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: October 2009

We use environmentally-friendly
soybean-based ink for printing
Part of this report (from p.3 to 30) is printed on paper
made with wood from forest thinking.
“Morino Chonai-Kai” (Forest Neighborhood
Association) — Supporting sound forest management.

A ̶ (2) ̶ 060002

PR47-124