Message from the President
Achieving a Sustainable Society
Business Combination with Applied Materials
The Tokyo Electron Group plans to combine with Applied
Materials, Inc. in 2014 with the aim of becoming a global
innovator in the semiconductor and display production

equipment industries. I am confident that the businesscombination will contribute substantially to the further

development of the semiconductor and semiconductor

production equipment industry and a sustainable society.
By bringing together the complementary state-of-the-art
technologies and services of each company, we intend

to create new development capabilities and a world classfinancial foundation, accelerate ground-breaking technologicalinnovation and production development, and establish thehighest quality management systems with support capabilities
that can respond accurately and in a timely manner toadvanced customer needs.

The business combination will also be an opportunity for

TEL Group employees to open doors to a wide range of newchallenges and we will strive to create an enthusiastic work
environment with a global focus that prizes diversity. We

believe that this in turn will further develop our employees’

talents and allow us to continue growing as a cutting-edge
global technology firm.

Review of 2013This year we once again made CSR the center of ourcorporate principles and established a company-wide CSR
infrastructure led by our dedicated division. For example,

we established new structures for corporate governance,
appointed a director responsible for implementing CSR,
established CSR organizations within group companies

including main overseas group sites, and created a CSR

implementation structure that is directly linked to management.
On a practical level, we incorporated the EICC® (Electronics
Industry Citizenship Coalitions®), into our business activities

2

Contents

Message from the President

p. 2

Contents/Scope of reportp. 3Tokyo Electron Group CSR History/
Corporate Profile

p. 4

Editorial Policy and Selective Report
Issues (Materiality)

p. 6

Corporate Governancep. 8

Working Together with Employees

p. 12

Safety Initiatives

p. 14

Quality Initiatives

p. 16

Procurement Initiatives

p. 17

Environmental Initiatives

p. 18

create joint CSR initiatives such as creating CSR structures,Social Contribution

p. 24

conflict minerals. We recognize that society is constantly

External Evaluation (main awards
received)

p. 26

generation science curriculum as well as continue our supportp. 27
Comments from a Third-Party Expert/
Response to the Third-Party Comments

based on the 10 Principles of the United Nations Global

Compact which TEL Group joined in 2013, and identified

and took steady measures to address social issues in ourbusiness. As a result of these efforts, in fiscal 2014 weachieved our target of halving product energy consumption by

fiscal 2015. In order to realize our CSR goals across our entire
supply chain, we started working together with our suppliers togreen procurement strategies, and measures to address
moving forward, and this year we helped design a next-

for education and social welfare programs in regions affected

CSR Goals

p. 28

Performance Summary

p. 30

foundation of our corporate activities. Establishing stable

CSR Policyp. 31

a sustainable society, and as such, it is our duty to continue

Scope of report
Tokyo Electron Group(49 consolidated companies)

by the Great East Japan Earthquake.

We strongly believe that CSR is a crucial element in theand reliable operations is a universal measure for building

developing effective and innovative CSR initiatives for the future.

This report and future information disclosures
Fulfilling the requests and expectations of stakeholders isa fundamental role of business enterprises. We consider

Materiality essential to effective communication and sought topresent the information that our stakeholders consider highly
important in a transparent and straightforward manner when

preparing this report. We will also disclose information on futurecompany developments and report to stakeholders by postingon our website and issuing news releases in a timely manner.

We request your continued support as the TEL Group takes

new steps into the future.

Tetsuro Higashi

Chairman, President & CEOTokyo Electron Limited(Tokyo Electron and its subsidiaries in Japanand overseas)

Period covered
Fiscal 2014 (April 1, 2013–March 31,2014). However, some information forfiscal 2015 has also been included.
Publication timing
Publication of this report: July 2014
(Japanese), August 2014 (English)
Publication of the next report:
September 2015 (Japanese), November
2015 (English)
Publication of the previous report:
September 2013 (Japanese), November
2013 (English)
Guidelines referred to in preparing
this report
Environmental Reporting Guidelines
2012 issued by Japan’s Ministry of
the Environment
Sustainability Reporting Guidelines Version
3.1 published by the Global Reporting
Initiative (GRI)

3

TEL Spirit & Corporate Social Responsibility

Tokyo Electron Group CSR History
1963

1994

創業 ー 理想的な会社を作りたい。
Foundation—We
wanted to create the ideal company

Founded by Tokuo Kubo and Toshio Kodaka in November 1963, Tokyo Electron(TELTM*) began as Tokyo Electron Laboratories Incorporated, with funding from
Tokyo Broadcasting System (TBS) and capital of over five million yen.
Before Tokyo Electron, Kubo and Kodaka had worked for general trading
companies and directly experienced the impact of the expansion of theelectronics industry in the United States through their business deals. At thistime, the United States economy was growing at a rapid pace, and with thebirth of semiconductors in the industry, the ambitious young men achievedmuch success during this period by focusing on the electronics market andestablishing one venture business after another. Inspired by the excitement of
the United States, and possessing a strong desire to personally contribute to
the cutting-edge advances being made at the time, the two men decided to
become independent and start their own venture. In the ideal company that thefounders envisioned, they would combine the after-sales service functions of a
specialized trading company with the manufacturer capabilities that were notpossible with a general trading company. Employees would be able to freely
discuss and share their ideas, and together would form a company that was
highly profitable, efficient, and continuously growing, in return giving back to its
employees, shareholders, customers, and society as a whole. This newcompany would constantly seek to be on the cutting edge of technology, as
well as stay constantly vigilant and alert to changing market needs.
These traditions continue to this day at Tokyo Electron, and we take pride in
our workplace and consider our employees part of the TEL family. Of course,
we also place a high priority on our shareholders, and profit is the first item in
our new revised Management Policies. As a manufacturer, the commitment tostay on the cutting edge of the electronics field remains unchanged from when
Tokuo Kubo and Toshio Kodaka started the company fifty years ago. The ideas
inherited from the time of the company’s inception, the TEL Spirit, form thecornerstone of our CSR activities.

Corporate Profile
Company name: Tokyo Electron Limited (TEL)
Address: Akasaka Biz Tower, 5-3-1 Akasaka,
Minato-ku, Tokyo, Japan 107-6325
Established: November 11, 1963
Representative: Tetsuro Higashi, President & CEO
Main business: semiconductor production equipment
business, flat panel display (FPD)
production equipment business
Capital: 54,961,191,468 yen
Number of employees: 1,551
Number of group employees: 11,355
Number of locations:
In Japan: 9 companies; 29 locations
Outside Japan:
40 companies in 15 countries; 48 locations
Worldwide total:
49 companies in 16 countries; 77 locations(As of April 1, 2014)

4Standardized, Environment and Safety
Center established(Present Corporate Environment Promotion
Department and Corporate Safety
Promotion Center)

ISO 9001 acquisition begins

1995

Customer Satisfaction is establishedas the new corporate slogan
Tokyo Electron strove toachieve customer orientationand continuously work toestablish the “Globally Excellent
Company” we envision.

1997

ISO 14001 acquisition begins

1998

Strengthening and maintenance of thecorporate governance framework
Code of Ethics established
Ethics Committee and Compensation
Committee established

In order to construct the framework to become a“Globally Excellent Company,” reorganization of
the management structure was started, with efforts
made to begin maintaining fairness andtransparency.

1999

Received the Fourth Disclosure Award
from the TSE
Safety First established

Semiconductor production equipment

Coater/developers
Plasma etch system
CLEAN TRACKTM LITHIUS ProTM Z TactrasTM

Single wafer deposition system
Triase+TM

Single wafer cleaning system
CELLESTATM -i

FPD production equipment

FPD plasma etch/ash system
ImpressioTM

Thermal processing system
TELINDY PLUSTM

Inkjet printing system for
OLED panel manufacturing
EliusTM2500

Wafer prober
PrecioTM

Toward a Sustainable Society
2000

2007

Nomination Committee establishedThe goals of TEL UNIVERSITY are to strengthen
knowledge, skills, and management training, as well as
leadership development.

Started publishing theEnvironmental Report

We began publishing this report as our
corporate pledge to preserve the global
environment as a business. We explain ourenvironmental policies, and specific plans
for action in implementing those policies
and the results of such actions in this report.

2001

Environmental slogan
Technology for Eco Life established

Corporate Message“People. Technology. Commitment.”
established

2009

Information Security Committee established

2013

CSR Promotion Department established

Our corporate message clearly conveyedthat we would serve as a backbone to anadvanced information-based society,and make efforts to achieve a prosperous
future.

2006

633.0

* TEL is a registered trademark or a trademark of Tokyo Electron
Limited in Japan and/or other countries.

Consolidated operating income(Unit: Billion yen)

508.0

The TEL Group was registered as amember company of the United
Nations Global Compact in July 2013.
In support of the Ten Principles, theTEL Group will work to maintain aharmonious pursuit of both its corporate
activities and a sustainable society.

TEL Values were established as action
guidelines composed of five items for
TEL Group employees around theworld to share, and act as a driving
force for growth.

668.7(Unit: Billion yen)

97.8

612.1
497.2

418.6

Organized for CSR promotion directly connected to
management

Joined the United Nations Global Compact

TEL Values established

Consolidated net sales

Human resources education institution
TEL UNIVERSITY established

60.4
32.2
14.7

12.5
-2.1

2009

2010

2011

2012

2013

2014 (FY)

2009

2010

2011

2012

2013

2014 (FY)Net sales by division (Consolidated)

Net sales by region (Consolidated)

Electronic components &computer networks

EuropeOther

0.4 billion yen (0.1%)

100.7 billion yen (16.5%)

FPD production
equipment

28.3 billion yen (4.6%)

5.5%

26.4%

12.5%

FY2014

China

13.4%
North
America

17.1%

2013

2014

Total

775.5

828.5

Cash & cash equivalents

240.1

268.1

Trade notes, accounts receivables 100.5

129.0

Inventories

135.6

168.2

Other current assets

45.1

56.0

Tangible assets

135.6

112.3

Intangible assets

59.9

29.5

Investment & other assets

58.4

65.1

Liabilities & Net Assets

2013

2014

Total

775.5

828.5

Net assets

605.1

590.6

Debt

166.6

224.4

3.7

13.5

(Unit: Billion yen)

Japan

South Korea

PV (photovoltaic
panel) production
equipment

3.8 billion yen(0.6%)

Other 3.3%

Assets (Unit: Billion yen)

Other liabilities

FY2014
Taiwan(As of March 31, each year)

21.8%

Semiconductor
production equipment

478.8 billion yen (78.2%)

5

Editorial Policy and Selective Report Issues(Materiality)
This report is based on Version 3.1 of the Global Reporting Initiative (GRI)* international guidelines, and in keeping with the
TEL Group's materiality which was clarified this time, the editorial policy is to report on the status of activities.
As a global company, the TEL Group complies with international CSR initiatives and regulations such as the United
Nations Global Compact and GRI, and social issues are checked against our own CSR management and managerial
resources, clarifying the selective report issues (materiality).

Step 1

Step 2Check social issues
Based on such guidelines as the 10
principles of the United Nations Global
Compact, seven core subjects of ISO
26000, and EICC—a code of conduct for
the electronics industry—reviews werecarried out by the seven CSR promotion
departments, and based on external
feedback, social issues were confirmed.

Check the relevance
between the size of theissues and business
Based on the relevance betweensocial issues checked in Step 1 andthe TEL Group's business, theimpact on society and issues with ahigh level of interest were identified.

Step 3

Inspect and review thevalidity of social issues

Based on the progress of initiatives
for issues and changes in societythat could affect business, thevalidity of establishing issues wasinspected, and reviews werecarried out when necessary.

List of selective report issues
IssuesOutlineMain stakeholders

Reference point

Shareholders
Investors

AnnualReportCustomersp. 10

Solid financial
footing・Establish a strong financial footing

Information security

・Put in place a framework for preventing information leaks
・Safe and effective utilization of information assets

Governance/ethics
and compliance・Business ethics and compliance results

Shareholders
Investors

p. 8, pp. 10–11

Achieving workplaces
with vitality

・Create a workplace that achieves a good work-lifebalance for all employees

Employees

pp. 12-13

Development of
personnel

・Support the development of skills by employees
・Build a framework for development of skills

Employees

p. 13

Safety and healthmanagement

・Carry out safety activities for work, design, andeducation, etc.
・Create a comfortable workplace environment

Employees

p.12, pp. 14–15

Product quality

・Achieve high quality to obtain customer's trust・Achieve efficient and stable quality control

Customers

p. 16* See CSR Goals on pages 28 and 29 of this report for details about materiality| Glossary |6*Global Reporting Initiatives. International guidelines for improving quality, reliability and comparability of contents of CSR reports.

Stakeholder perspective

High

Selective report issues matrix

Conflict minerals
response

Energy-saving,
resourcesaving
products

Information
security

Solid financial
footing

Product quality

Reducing water
consumption

Supply chain
management

Governance/
ethics andcompliance

Reducing waste,
recycling

Safety andhealthmanagement

Socialcontribution
activities
Conservation of
biodiversity

Developmentof personnel
Achieving
workplaces
with vitality

Business continuity/growth perspective

IssuesOutlineHigh

Main stakeholders

Reference point
p. 17

Supply chain
management

・Optimization of the entire supply chain

Suppliers

Conflict minerals
response

・Improving the system related to the conflictminerals problem

Customers

Energy-saving,
resource-saving
products

・Promoting environmentally friendly product design
・Provide customers with environmental value

Reducing water
consumption

・Effective use of resources

Reducing waste,
recycling

・Preventing environmental pollution from waste
・Proper management and processing of regulated
chemical substances

Conservation of
biodiversity

・Promoting initiatives for biodiversity conservationand improving the framework

Social contribution
activities

・Initiatives for the development of young people as future leaders・Supporting community-based citizenship activities
and revitalization efforts in response to local needs

Suppliers

Customers
Local community

Administrative organization

p. 17
pp. 20–22
p. 22

Local community

pp. 22–23

Local community

p. 19

Local community

pp. 24–26

Administrative organization

Administrative organization

7

Corporate Governance
Against a backdrop of ongoing business globalization, Tokyo Electron Group maintains a management
philosophy that puts emphasis on improving corporate value for all its stakeholders. To this end, the Company
considers it important to strengthen corporate governance. The TEL Group is building a highly effective,
optimized corporate governance structure, and upgrading and strengthening its internal control system and risk
management system
corporate directors consists of a monthly fixed remuneration
and a performance linked compensation, and the compensation
for audit & supervisory board members consists only of amonthly fixed remuneration, to maintain independence frommanagement. Retirement allowance systems, which constituted
a significant part of fixed compensation for corporate directors
and audit & supervisory board members with a strong monthly
fixed remuneration, have been abolished since the 43rd Annual
Shareholders’ Meeting (Fiscal Year of 2006, March).

Corporate governanceTokyo Electron is endeavoring to establish and operate optimaland highly effective structures of governance based on its threebasic principles: (1) Ensure the transparency and soundnessof business operations; (2) Facilitate quick decision-making
and the efficient execution of business operations; and (3)Disclose information in a timely and suitable manner.

The corporate governance framework

The Board of Directors

Tokyo Electron uses the audit & supervisory board system
based on the Companies Act of Japan, and furthermore
has established its own Nomination Committee*1 andCompensation Committee*2 to increase the transparency andobjectivity of management. The Company has also adopted
the executive officer system to facilitate quick decision-making.
Moreover, Tokyo Electron has been disclosing the individual
remunerations of representative directors since 1999 inrecognition of the importance of managerial transparency forshareholders.
The executive compensation program for corporate directors
and audit & supervisory board members was adopted with theintention of tying compensation more closely to financial results
and shareholder value, raising corporate competitiveness, andenhancing management transparency. The compensation for

The Board of Directors consists of nine directors, two ofwhom are outside directors. Directors serve one year terms
in order to ensure that Tokyo Electron can respond quickly
to changing business conditions, and to more clearly define
management accountability.

The Audit & Supervisory Board
Tokyo Electron has four audit & supervisory board members,
three of whom are outside audit & supervisory board
members. The audit & supervisory board members not
only attend meetings of the Board of Directors, the Top
Management Conference and other important businessmeetings, but also conduct operations audits and accounting
audits, evaluate risk management, and audit the performanceof duties by directors.

Diagram of the Corporate Governance Framework, Internal Control System and Risk Management System
Shareholders’ Meeting
Audit &
Supervisory Board

Board of Directors· Compensation Committee · Chief Business Ethics Director · Chief CSR Promotion Director· Nomination Committee· Chief Internal Control Director

Request for improvement/ReportCompliance & Internal Control Executive Officer
CSR Promotion Executive Officer

Committees· Ethics Committee· Information Security Committee· Export Trade Control Committee
CSR Promotion Council

Representative
Directors

Independent Auditors

Confirm the progress ofimprovements and give instructions

Audit and improvement reports
Request for
improvement/Report

Executive
Officers

Request for
improvement/
ReportInternal Audit Dept. (Global Audit Center)

Audit

Risk Management & Internal Control
Function (General Affairs Dept.)
Request for
Monitoring
improvement/Report

Administrative Depts.

| Glossary |8

Check and balance

Business Depts.

*1 Nomination Committee: This committee nominates candidates for directors and a candidate for CEO, which it submits at the meeting of the Board of Directors for approval.
*2 Compensation Committee: This committee develops proposals on the executive compensation program and the compensation to be paid to representative directors,
which it submits at the meeting of the Board of Directors for approval.

Approach to CSR

Main initiatives for fiscal 2014

The Tokyo Electron Group believes that achieving sound andcontinuous growth as a business enterprise is our primary
responsibility for contributing to social development throughthe provision of leading-edge products, technologies, andservices. To achieve this, not only must we provide highquality products and services, but we must be a company
that is esteemed from the perspectives of good-faith andfair corporate activities, pursuit of safety and environmental
preservation, respect for human rights and ethics, crisis
management, corporate governance, and compliance. The
Tokyo Electron Group will continue to carry out initiatives
based on its CSR Policy and in response to the opinions ofour many stakeholders.

In 2013, we established a specialized CSR department
and appointed a CSR Promotion Director to the company
in order to create a structure of governance that directly
connects CSR to management. Briefings were held in Japan
as well as key locations in Asia and the West to promote
CSR and establish a company-wide CSR foundation. At the
newly established CSR promotion meeting consisting of theseven CSR promotion departments and related directors,
we identified CSR objectives for individual departments,
established benchmarks to measure progress, and thenbegan targeted measures to achieve our goals.
In January 2014, a visiting lecturer gave a seminar on
the EICC® Code of Conduct published by EICC®*, a CSR
promotional organization for the electronics industry. About
130 people affiliated with CSR promotion attended thelecture via video conferencing with the head office andlocations in Japan and overseas.

CSR Promotion Framework

President & CEO
Chief CSR Promotion Director
CSR Promotion Executive Officer
CSR/Ethics/Personnel/Safety/Quality/Environment/Procurement

CSR Promotion Council
TEL Group companies in and outside Japan(19 locations worldwide)
EICC® internal seminar

TEL Group CSR Policy
1. Corporate Activities
The Tokyo Electron Group will provide safe and high-quality
products and services to customers around the world andcontribute to the realization of an enriched society.
2. Business Ethics
The Tokyo Electron Group acts in compliance with the laws andregulations of each country, international regulations, and inaccordance with strict business ethics. We do not engage in any
conduct that impedes fair and open market competition.

3. Respect for Individuals
The Tokyo Electron Group respects the character and individualityof each person. We recognize the diversity of employees, sharea sense of mission, and promote the development of workplaces
with vitality.
| Glossary |4. Environment
The Tokyo Electron Group seeks to achieve harmony with theglobal environment. We strive to reduce our own impact on theenvironment and contribute to reducing the environmental impactof customers by developing and providing eco-friendly products.
5. Communication with Stakeholders
The Tokyo Electron Group discloses information relating to theGroup in a fair, impartial, and timely manner, strives to engage in
two-way communications, and works to meet the expectations ofstakeholders appropriately.

6. Social Contribution
The Tokyo Electron Group engages in social contribution activities
worldwide as a good corporate citizen to contribute to thedevelopment of local communities and society.

* EICC®: Electronic Industry Citizenship Coalition®, an organization that sets forth a code of conduct for labor, safety and the environment for supply chains within
the electronics industry.
“EICC” and “Electronic Industry Citizenship Coalition” are registered trademarks of Electronic Industry Citizenship Coalition Incorporated.

9Corporate GovernanceInternal control/risk management
In order to enhance the TEL Group’s corporate value,
and also accept responsibility for our behavior towards all
stakeholders, we are making efforts to strengthen viableinternal control. We are implementing practical measuresin line with the Fundamental Policies concerning Internal
Controls within the Tokyo Electron Group set down by
the Company’s Board of Directors. In addition, we areconducting actions for internal control over financial reporting
based on the Financial Instruments and Exchange Law.

Risk management system
To more effectively strengthen the internal control and risk
management systems of the entire TEL Group, under aCompliance & Internal Control Executive Officer, we haveestablished a dedicated risk management and internal
control function within the General Affairs Department.
This function evaluates and analyzes risks that could affect
the TEL Group, and works to reduce these major risks
by promoting the necessary measures. The status of risk
management activities is reported regularly to the Board of
Directors.
In addition, the Information Security Committee andExport Trade Control Committee were established, in order
to better enhance confidential information management andthe export-related compliance system.

Internal audit department
The Global Audit Center is the internal audit department of
the TEL Group. The Global Audit Center is responsible for
auditing the business activities of the Group’s domestic andoverseas bases, as well as their compliance and systems,
and evaluating the effectiveness of internal control systems.
As necessary, the Global Audit Center also provides
guidance to operating divisions.

10

Business continuity management
The TEL Group made an overall review of its BusinessContinuity Plan (BCP) from fiscal 2013. Tokyo Electron’s
Head Office redeveloped its BCP in fiscal 2013 to respond tolarge-scale earthquakes. From fiscal 2014, the BCP is being
built at the plant and office-level by reviewing measures for afast recovery in a time of disaster, and alternate production.
In addition, the TEL Group carries out an annual BCP drill
involving an earthquake scenario. Emergency supplies suchas food and drinkable water, and first-aid outfits for timesof disaster, are made available at all times, and thoroughmeasures involving a disaster scenario are carried out for
the key systems across the entire Group.

A BCP drill

Information security
Under the TEL Group Information Security Policy and theRegulation for Management of Technical and BusinessInformation, Tokyo Electron has put in place a framework forpreventing information leaks to ensure appropriate management
and safe and effective utilization of information assets.
In order to strengthen management of technical andbusiness information across the Group, suitable operation
rules are reviewed, and we regularly hold web-based
education for all executives and employees of Group
companies in Japan. These measures will be spread in thesame way to overseas Group companies. Contracts related
to information security will also be suitably reviewed, andwith the goal of becoming familiarized with the contracts
and comply thoroughly, we obtain consent for contract
compliance – every year from all executives and employees
of TEL Group companies including overseas.
In addition, a report system is established for accidents
that lead to information leaks and problems (incidents) withthat risk. Contents of the reports include prompt responses
to each problem, and through analysis they are reflected incompany-wide efforts and measures. In addition to these,
information security related efforts such as information
system security measures and operational management
self-assessment within the TEL Group are being carried out.

Business ethics and compliance
Stakeholder trust is the cornerstone of business activities. In
order to maintain trust, it is necessary to continuously act inrigorous conformity to business ethics and compliance. In linewith the Fundamental Policies concerning Internal Controls
within the TEL Group, all Group executives and employees are
required to maintain high standards of ethics and to act with aclear awareness of compliance.

Business ethics
In 1998, Tokyo Electron formulated The Code of Ethics of
the Tokyo Electron Group to establish uniform standards togovern all of its global business activities. In the same year,
the company appointed a Chief Business Ethics Director andestablished the Ethics Committee, which is responsible forpromoting business ethics awareness throughout the TELGroup. The Ethics Committee comprises the Chief Business
Ethics Director, the Ethics Committee Chairman, andpresidents of major Group companies in and outside Japan.
The members meet semiannually, report on ethics-related
issues faced by each company, and discuss measures tofurther improve ethical behavior and compliance.
The Code and its Q&A section are published in Japanese,
English, Korean and Chinese, and the company distributes
it to all Group executives and employees, including thoseoverseas. Moreover, the Code is appropriately reviewed andrevised in response to changes in environmental and social
demands.

Compliance education
Through the TEL Group’s e-learning system, we provide acommon web based training program covering the basics
of compliance, internal control, export-related compliance,and other topics, which all executives and employees are
required to complete, as well as a web based training
program on insider trading and other subjects suited to one’s
position and job role.
In fiscal 2014, with the goal of greater understanding for
new compliance problems (such as the use of social media,
and anti-corruption), web-based, test-format education
on business ethics and compliance was carried out for all
Group executives and employees in Japan. It was also
spread to overseas Group companies. All employees
involved with Group companies in Japan completed thelessons, and of the overseas Group company employees,
more than 80% are finished (as of May 2014). These efforts
will be continued in fiscal 2015.

Internal reporting system
In the event that an employee becomes aware of any activity
which may violate a law, regulation or principle of businessethics, the TEL Group operates an internal reporting systemthat employees may use to report their concerns. The entire
Group has established an ethics hotline and a compliancehotline, and this reporting system is also in place at eachoverseas base. In all cases, this system ensures that strict
confidentiality is maintained to protect the whistleblowers
and ensure that they are not subject to any disadvantage orrepercussions.

Compliance system
Tokyo Electron has appointed a Compliance & Internal
Control Executive Officer from among the executive
officers to raise awareness of compliance across the TELGroup and further improve its implementation. Also, Tokyo
Electron has drawn up the Compliance Regulations settingout basic compliance-related requirements in line with theCode. The Compliance Regulations are intended to ensurethat all individuals who take part in the business activities
for the TEL Group clearly understand the pertinent laws,
international standards and internal company rules, andconsistently apply these rules in all of their activities.

11

Working Together with Employees
Business growth requires that each employee, as the core of the company, be creative and have a positive
attitude, flexibility, enthusiasm and a sense of responsibility. The TEL Group believes that each individual
employee is the source of value creation, and we strive to respect and understand differences in values
arising from one’s character, individuality, or daring spirit by making the work environment a place where each
employee can work to their full potential.

Easy-to-work environment
Personnel system
In order to achieve our goal of creating a visionary and innovative company
full of energy, we adopted a personnel system that promotes each individual
employee’s growth and organizational stimulation. For example, with anevaluation system, not only results, but also the initiatives for achieving theresults are important. We provide opportunities for personal growth to ouremployees and engage in fair evaluation of skills and treatment so that talented
employees who make significant achievements are well rewarded.

Initiatives for work-life balance
The TEL Group has enhanced its childcare support system and nursing careleave system to help employees continue to pursue their careers throughvarious life events. According to Japanese law, companies must take measures
such as reducing hours worked for parents raising children under the age ofthree. Tokyo Electron goes beyond this minimum, giving parents of children ofelementary school age or younger the option to work shorter hours, and offering
additional assistance in balancing work and home life. As a result of thesemeasures, we saw 53 employees return to work after taking childcare leave andanother 70 take childcare leave in fiscal 2014.

Improving the workplace environment and employee health
The TEL Group places the highest priority on the safety and health of its
employees, and in February 2012 issued a health declaration to provide services
such as walking events for promotion of health, healthy meals at company
cafeterias, and health counseling with doctors. In addition, we are working tocontinually ensure that TEL is a safe and productive workplace environment byrequiring harassment prevention education for upper level management, as wellas providing professional counseling services.

I n Fo c u s Fulfilling work and childcare

Last year, I returned to work after taking childcare leave for a second time. I
currently handle administration work such as sales and accepting orders inthe sales division. I have been called to the day care center when my childdeveloped a sudden fever, but with the understanding and cooperation of myworkplace, I have taken advantage of this system and been able to balance
work while raising my children. At the same time, I have switched from regular
office work to more comprehensive work with greater responsibility, and I wasable to place importance on improving my own career. By balancing work whileraising children like this, I am thankful that I am able to continue working while
growing and feeling challenged.

12

Number of Group employees

12,304

12,201

10,068

10,343

10,684

7,820

7,908

8,004

8,205

8,186

1,633
1,017

1,084

1,150

310

305

313
1,217

1,046

921
2010

2011

2012

Japan
USA
Worldwide

888

888

1,494

1,559

2013

Europe

1,652

2014

(FY)

Asia

Users of shorter working hour system109
for childcare
85
75
65

61
48

47

50

50

2012

2013

2014 (FY)

34

2010

2011

Children under the age of threeChildren over three years old but not finishedelementary school

People taking childcare leave andpeople returning to the workforce*
76

70
59

55
47

2012

2013

53

2014

(FY)

Number of people taking childcare leave
Number of people returning to the workforce* Excluding Tokyo Electron Device Ltd.
Refers to Group company employees in Japan

Mari Kurahashi

Clean Track Sales Dept.
Tokyo Electron Limited

Employee retention rate three years after
joining the company

94.2%

The Tokyo Electron Group has adopted an OJT System* for newly hired
employees in Japan to enable them to quickly transition and work in a

productive and nurturing environment. In addition, we hold regular meetings
to keep up with and discuss the state of the workplace and employee
relations to create a pleasant work environment for all employees.

Work location of Group employees
23.5%

25.1%

32.9%

33.3%

76.5%

74.9%

67.1%

66.7%

End ofMarch 2011

End ofMarch 2012

End ofMarch 2013

End ofMarch 2014

Employees working outside Japan
Employees working in Japan

Parking space forthe disabled

Washroom for the disabled

Initiatives for globalization and diversification
The TEL Group does business around the world, and as of March 2014,
overseas sales account for 84% of the Group’s total sales. Additionally, about
33% of TEL Group employees work outside Japan. In line with this shift toward
globalization, even TEL Group companies within Japan are aggressively
expanding overseas hiring to develop diverse workforces, with 11% (as of March2014) of new hires being recruited from among foreign nationals.
Furthermore, along with working to create an excellent work environment the
TEL Group recognizes that every person is entitled to basic human rights, andwe strive to be a corporation where a diverse range of employees can work
to their full potential. One of those efforts is establishing a work environment
where employees with disabilities can work without any inconveniences. All ofour business sites and company recreation facilities are equipped with parking
spaces, washrooms, slopes, and handrails for the disabled.

Human resource development
TEL UNIVERSITYThe TEL Group has established TEL UNIVERSITY, an internal education
institution with the goal of enhancing its human resources and improving theoverall capabilities of the organization. TEL UNIVERSITY courses include a
program that provides individual employees with world-class knowledge andskills, a leadership development program for next-generation leaders and amanagement and organizational training program.

English interview participation rate

92.0%
Fiscal 2014 results (Japan)(6,560 people)

TEL UNIVERSITY-hosted program examples
Number of participants by program for fiscal 2014
English conversation class 24 classes 129 persons
Communication andfacilitation seminar
Global communication
program

5 classes 100 persons
4 times

32 persons

Career design seminar

18 times 500 persons

Life design seminar

10 times 339 persons

Next-generation leadersdevelopment program

27 times

43 persons

Management

8 times

85 persons| Glossary |Main initiatives for fiscal 2014
Our main goal for 2014 is to establish TEL as a truly global organization, one
aspect of which is to allow TEL employees to further develop their English
ability. All employees of the TEL Group in Japan were interviewed in English to
determine the appropriate English level for them to begin studying at, and allow
them to experience the fun and the difficulties of learning English firsthand.
Based on its results, we developed and provided appropriate programs such as
self-learning assistance and English conversation courses.
Another initiative aimed at increasing diversity is our employee training
program for understanding differences in communication style between foreigncultures, and deepen mutual understanding so foreign employees are able todo their jobs smoothly in the workplace. In addition, seminars are held at TELGroup companies in Japan with the goal of improving Japanese communicationand facilitation skills.
Furthermore, we hold career design seminars for individual employees
to reflect and grow together with the TEL Group to improve and enrich theirpersonal careers. Also, we offer life design seminars and consultation services
to explain and discuss work and life plans before and after retirement, as well as
reemployment systems after retirement.

* OJT system: On-the-Job Training system. This is a teaching method whereby an employee takes on actual work and cultivates their skills to gradually increase
the difficulty level of their job.

13

Safety
The TEL Group gives the highest consideration to the safety and health of every person connected withour business activities, from top management to frontline staff. All of our staff acts in accordance with
their respective responsibilities and we maintain constant awareness of potential problems and the need tocontinually improve our safety and health standards.

It is important for every individual to raise their own safety awareness in orderto achieve work sites where all employees can work safely. To promote safety
standards, the TEL Group has established a universal framework consistingof a supervising Safety Meeting and specialized Work Safety Promotion andEquipment Safety Promotion Meeting. This organization identifies the cause ofboth accidents resulting in injury or damage due to equipment or human error
and makes efforts to prevent similar incidents from reoccurring.

Safety promotion framework
Global safety activity promotion framework

Safety promotion framework

Safety Meeting
Information about common and importantmatters related to safety of the entire Groupis shared, and intensive debates are held
when necessary. Basic policies are sharedand distributed to the entire Group.

Work Safety Promotion Meeting
Work safety-related matters at customer’sbases and TEL Group bases are discussed
from a global perspective, and put into
practice.

Equipment Safety Promotion Meeting
Sharing and complying with regulations related
to equipment safety will enhance safety.

Equipment safety measures
The TEL Group examines global laws and regulation, abides by all safety
regulations of the region our equipment is shipped from, and allows inspections
by safety certification organizations when necessary.
In addition, we carry out risk assessments during the development phase
while considering the equipment’s capabilities and life cycle, and based onthese results implement intrinsically safe equipment designs*1 to reduce theserisks. We also created subcommittees and improved the safety performancewith newly acquired companies by examining products with lengthy histories
and sharing methods to improve them.
We will continue these efforts and enhance the safety of all of the TEL Group’s
equipment.

Plants in JapanTokyo Electron
Europe Ltd.

Tokyo Electron U.S.
Holdings, Inc.

TEL NEXX, Inc.

Safe equipment
design integration

TEL Magnetic
Solutions Ltd.
TELTechnology Center,
America, LLC

TEL Epion Inc.
TEL FSI, Inc.

I n Fo c u s Taking part in safety training

According to the survey we conducted after our employees completed theirsafety education, many participants indicated that they liked that the content
could be applied in real-life operations.
●

I knew that work needs to be temporarily stopped when trouble occurs,
but I learned once again that there is no need to hesitate. I will put this into
practice starting tomorrow.

●

I had no idea that even a trace of alcohol could result in an explosion, orthat an electrical short could cause such large sparks. I want to be aware ofthese things so I can avoid them when I am working, and regularly take partin training so my awareness does not fade.

| Glossary |14

Education*1 Intrinsically safe equipment design: By coming up with innovative machinery design, this eliminates the causes of machinery posing a hazard to people.

0.33
TCIR*2 value

As the Tokyo Electron Group carries out accident prevention activities on
an ongoing basis, this facilitates a decrease in accidents. As a result, theoccurrence rate of injuries from accidents during work—as indicated by
the TCIR value—has maintained a world-class safety standard of lessthan 0.5 since 2006. In fiscal 2014 we achieved a TCIR value of 0.33.

Occurrence rate of workplace accidents(FY2011=100)
100 100

106
85
67
50

50
30

2011

2012

2013

2014

Workplace accidents
Accidents that could lead to a severe injury(FY)

Efforts for accident prevention
As part of our social responsibility activities, the TEL Group places great
importance on ensuring that everyone involved in our business can work ina safe workplace environment and enjoy good health by regularly holding
safety promotion meetings in Japan and overseas. In particular, the number ofaccidents that could have led to severe injury*3 was reduced by 70% in fiscal
2014 from the fiscal 2011 level due to our diligent efforts. In addition, the overall
rate for workplace accidents*4 including mild injuries was reduced by 33%*.
*Accidents counted with the same conditions as the previous fiscal year (excluding accidents that occurred at
the four companies we acquired in fiscal 2013, and traffic accidents that occurred at the TEL Group).

Workplace initiatives
When equipment is being operated in a customer’s clean room, signs indicating“in operation” are posted on the operating equipment and auxiliary systems.
This eliminates the potential danger of stopping the wrong machine of the same
type by mistake, and also eliminates the risk of an individual other than a worker
operating the equipment by mistake.
Also, based on the Group’s global guidelines we inspect the facilities andsafety equipment as well as the safety standards at our customer’s new factory
before delivering our equipment. We examine and identify potential problems
or questions regarding safety and work procedures, and work only begins after
making the necessary preparations and improvements to the environment
with the customer. Even after starting the equipment installation, we will run
additional checks if necessary and make improvements after discussing theresults with the customer.

Safety promotion activities
Nearly all accidents occur when unsafe conditions are combined with unsafe
behavior. Therefore, we work to prevent unsafe conditions and behavior before
they arise by having all workers share details about their work and areas toexercise caution, as well as review countermeasures for accidents and possible
mistakes that can occur during operation in advance. Furthermore, we are
improving the safety awareness of the workers by appointing leaders for eachwork group to oversee the entire worksite and having a safety manager visit theworkplace to demonstrate proper caution and how to minimize risk factors thatcan lead to accidents or mistakes.

Safety education

Physical safety training| Glossary |We continue to put our efforts into safety education, because we believe eachindividual’s safety awareness leads to voluntary accident prevention activities. We
utilize web-based educational and awareness campaigns to eliminate workplace
accidents at all TEL Group locations in Japan and overseas. Furthermore,
we have implemented physical safety training in Japan. For instance, we run
simulations of accidents caused by an electrical short due to a current carrying
wire being cut during operation to reduce the risk of similar accidents.

*2 TCIR: Total Case Incident Rate. This is the occurrence rate of workplace accidents (OSHA standard) per 200,000 hours worked.
*3 Accident that could lead to a severe injury: An accident that could result in a severe injury with ongoing effects.
*4 Workplace accident: Following the guidelines of the United States Occupational Safety and Health Administration (OSHA), the TEL Group defines an accident
involving an injury to an employee as a “workplace accident.”

15

.5%
35
reduction

Reduction rate of changes at the design stage

Quality
Each individual employee of the TEL Group strives to understandthe true needs of customers, and we provide high quality
products and services to satisfy our customers by continuously
working to improve quality through our respective work.

The concept of high quality manufacturing
The TEL Group promotes the concept of high quality manufacturing throughout
our entire company. From the Development and Design, Purchasing, Production
and Manufacturing, and Shipping Departments directly responsible for our
products to the Planning and Sales, Administration, and Service Departments
supporting them, we constantly strive to improve quality to meet and exceed the
expectations of our customers.
Planning
and Sales
Dept.

In order to improve quality, reducing the numberof changes during the development and designphase is necessary. As a result of improvement
efforts on an ongoing basis, the number ofchanges at the design phase for fiscal 2014
decreased by 35.5% from fiscal 2011.

Development
andDesign Dept.

Purchasing
Dept.

Service Dept.

Quality Promotion Framework
President & CEO

Production and
Manufacturing Dept.
Shipping Dept.

Administration
Dept.

Aiming to increase the quality of all departments

Quality promotion framework
The TEL Group has established a cross-divisional TEL Group Quality Promotion
Framework led by four working groups. These working groups cooperate witheach other for efficient and stable quality control with the goal of improving
customer satisfaction.

Initiatives for improving quality
In order to increase efficiency and design quality, the TEL Group employs astrategy of early detection to solve potential problems in the early phases of
product development. As a result, it is highly important to correctly identify andpinpoint potential problems during the early stages of design. To guarantee thehighest possible quality, we expanded our training programs created to improve
design quality and skills and built a matching framework to test them.
In the future we will be increasing efforts to use appropriate analysis
techniques to improve equipment design quality and build quality as well as
reduce man-hours and development costs, and use evaluations to properly
measure and reward employee skill and improve motivation.

General Manager of
Production Division
Presidents ofGroup companies
Heads of GM
committees
Technology Production
ControlGM
Committee Committee| Glossary |16*1 TPM activities: Total Productive Maintenance or Management.

Quality GM
Committee* Working group members
DesignParts
Standardization Standardization consist of general managers,
department managers or
Working
Working
representatives from plants*
Group*
Group*and offices in Japan.

Analysis education using the Internet

I n Fo c u s From the manufacturing workplace—Improving quality and productivity through TPM activities

The TEL Group has continued to implement TPM activities for the last 10 years to maintainand improve overall productivity. We have implemented our TPM systems throughout our
offices and manufacturing locations. In addition to establishing TPM as an instrumental
component of our employee training, we are also working closely with the Design and
Administration departments to tackle challenges and develop new improvements to quality
and productivity across all divisions.

Material GM
Committee

Secretariat(Quality
Promotion
Department)*1Procurement
In order to contribute to the development of society and achievesound and sustainable growth, the Tokyo Electron Group values
communications with suppliers and seeks to build a relationshipthat continues to grow on a global scale.

Number of companies participatingin the Production Update Briefing

300

About
companies
The TEL Group prioritizes relationships with

suppliers, and in order to share our businessoverview and policies we hold the Production

Update Briefing. About 300 suppliers took part in
the fiscal 2014 fall briefing.

CSR activities across the supply chain
In addition to daily communications, with the goal of creating better relations
with suppliers, the TEL Group holds TEL Partners Day and Production Update
Briefing as platforms to introduce a variety of CSR initiatives. We call for thecooperation of our suppliers on the Internet with regard to compliance with laborrelated laws, such as child labor and forced labor, and to respect fundamental
human rights. As a new initiative in fiscal 2014, we conducted a CSR survey
with our main suppliers based on the EICC® Code of Conduct, evaluated theresults, and carried out feedback. Furthermore, we revised our STQA (Supplier
Total Quality Assessment) to include additional items reflecting our CSR policy.
Corporate responsibility is a cooperative effort between both the company andsuppliers, and we are continuing our efforts to ensure that communications with
suppliers become more open and productive.

TEL Partners Day held in fiscal 2014(2) Support recovery efforts
and take procurement
measures(Procurement BDR*2)(3) Establish BCP systemwith suppliers(4) Build relationship with
suppliers based on mutual
trust and respect

Speed & accuracy(1) Investigate damageand evaluate impact(Procurement BER*1)

Minimize risks

Procurement BCP scheme

Pre-disaster Post-disaster measures
measures

Procurement BCP

Initiatives for procurement BCP

Conflict mineral type
Conflict
mineral name

Usage example

Tantalum

Electrolytic capacitor, IC,
and refractory metal

Tin

Solder, plating, andreducing agentsTungsten

Cemented carbide, electronic
components and mechanisms

GoldIC, plating, and connectors| Glossary |Procurement BCP
The TEL Group develops disaster prevention activities and drills in cooperation
with suppliers on an ongoing basis. In order to promptly identify damage andquickly take steps for recovery following a disaster, we have built a database of
the production facilities our materials are procured from, and registered about
14,000 locations after reviewing the data with suppliers. We were able to use
this data to quickly assess the damages resulting from earthquakes or othernatural disaster in a total of nine instances in fiscal 2014. We also conduct anannual Procurement BCP Survey and use the feedback to improve our risk
prevention measures together with suppliers.

Conflict minerals
The TEL Group plans to eliminate the use of raw materials and components
containing conflict minerals (tantalum, tin, tungsten, and gold) from the
Democratic Republic of the Congo or its neighboring countries that form asource of funds for armed groups and give rise to human rights violations andpoor working conditions. Based on the results of our fiscal 2014 survey, wewere able to confirm that our suppliers have increasingly taken steps toward a
conflict-free industry. Starting in fiscal 2015, we plan to conduct a CFSI*3 survey
with suppliers.

*1 BER: Business Emergency Response. First response taken immediately after a disaster.
*2 BDR: Business Disaster Recovery. Recovery effort that is made according to the results of the damage investigation.
*3 CFSI: Conflict-Free Sourcing Initiative, founded by members of the EICC® and GeSI (Global e-Sustainability Initiative). Inspection and certification is being
implemented to see whether or not smelters for conflict materials are being used for the Democratic Republic of the Congo or its neighboring countries that forma source of funds for armed groups.

17

Environment
The earth has various environmental issues, such as global climate change, depletion of resources, andpollution from waste, as well as the reduction in biodiversity as a result of these changes. The TEL Groupaims to solve environmental issues through our leading-edge technology and services under the slogan of“Technology for Eco Life,” and contribute to the protection and conservation of the environment.

TEL Group business activities and environmental issues
Customers

Suppliers

Global climatechangeDepleted resource
problem caused byconsumption of resources

Pollution fromchemicals andwaste

Biodiversity

Shareholders/investors

Employees

Raw materials
procurement

Development/
production

Transportation

Product use

Disposal/
recycling

Activities at plants and offices
Consumer use of
semiconductors

TEL Group business activities
Local
community

Administration
organization

Stakeholders

Perspective of stakeholders
Perspective of Tokyo Electron Group
Perspective of environmental issues

Environmental
goals

The TEL Group’s products go through many stages in their life cycles, from product development and production, activities atplants and offices, procurement of parts, product logistics, and finally use by the customer. The result of these processes, such as
greenhouse gases, discharged water and waste, and consumption of resources like water and petroleum, all have an impact on theearth’s environment that is closely linked to biodiversity. Of these, the TEL Group considers the main environmental issues to bepreventing global climate change, conserving resources, eliminating waste, and biodiversity, and has set goals with a multifaceted
approach to our commitment to stakeholders, risk management and enhancing corporate value. Based on these goals, the TELGroup will continue efforts to promote the development of a sustainable society.
Products
Procurement and logistics
Plants and offices
Environmental management* See CSR Goals on pages 28 and 29 of this report for details about goals.

18

1994
Start of environmental activities

The TEL Group established a special division for environmental

activities in 1994, and began environmental activities for the overall
Group. ISO 14001 compliance began in 1997. The Environment
Policy was established in 1998 and based on this policy we arepromoting the reduction of environmental impact.

Global Environment Meeting

Environmental activity promotion framework
Product Environment Value Meeting

Energy-saving/resource-saving products, etc.

Product Environment Compliance Meeting
Compliance with, and response to, laws
and regulations on environmental
standards for products in each country

Operation Environment Value Meeting

Reducing environmental impact ofbusiness activities; ensuring compliance

Environmental management
Environmental activity promotion framework
In order for the Group to collectively solve environmental issues the TEL Grouphas established the Global Environment Meeting, held twice a year to monitor
the progress of our environmental goals and ensure that we are continuously
improving. We also have individual meetings such as the Product Environment
Value Meeting, the Product Environment Compliance Meeting and the Operation
Environment Value Meeting to facilitate information sharing among concerned
parties to achieve our environmental goals.
Also, the TEL Group is working to obtain an ISO 14001 certification, an
environmental management standard, primarily at manufacturing subsidiaries
since 1997. Currently, 10 of our locations are certified, and we will continue
maintenance and certification acquisition in the future.
We ensure compliance with environmental laws, emission standards, andother voluntary standards using the frameworks we have put into place. In
fiscal 2014, the Group was not involved in any environmental incidents or
accidents, found in violation of environmental law, or subject to any related legal
proceedings.

Environmental education
The TEL Group provides Group employees with environmental education andtraining to improve environmental awareness at all job levels. In fiscal 2014,
we educated employees in the U.S., Europe, Korea, China, and Taiwan about
the environment with an e-learning system on the Web, and we will continue toeducate our employees about the environment in the future.
Web-based environmental education

Ecosysytem tour

Biodiversity
Global climate change problems, depleted resource problems, and waste
problems can cause abnormalities in the ecosystem, and have a significant
impact on biodiversity. The TEL Group is working to preserve biodiversity for asustainable society through efforts to create green space at each plant in Japanand overseas.
In fiscal 2014, ecosystem tours were held multiple times at each plant andoffice in Japan. Bird walks were organized around the Fuchu Office along
the Tama River with sightings of rare birds such as house swifts and shrikes.
Additionally, in a lecture about biomimicry we learned that the features andworkings of the familiar ecosystems could serve as hints to develop newtechnologies, and we recreated the appearance of leaves housed inside winterbuds using origami. This is called the “Miura fold” and is used for maps andcans to fold large items in a way so that they can later be opened effortlessly.
Becoming familiar with and getting to know nature is a way for us to becomeaware of new information and challenges, and we will continue biodiversity
conservation and activities in the future.

19

Environment

Initiatives to Prevent Global Climate Change
Power consumption of major models ofeach business unit

Product initiatives
The TEL Group believes that promoting environmentally friendly product design
is a crucial part of its corporate activity and we are working on reducing theenergy consumption of our products as a top priority challenge. As a result,
we achieved our target of reducing energy consumption by 50% (per wafer;compared to fiscal 2008) in major models of each business unit by fiscal
2015 ahead of time in fiscal 2014. In the future, we will continue to promote
manufacturing that has high energy efficiency and a low environmental impact.

%50
reduction

Main activities for fiscal 2014●

Thermal processing system TELINDY™ PE

In our thermal processing system, multiple wafers go through batch thermal
processing with a heater. Using existing equipment, it was already possible
to batch process 100 to 125*1 wafers, but by developing and using long typeheaters that have lower power consumption, we are now able to process 150
wafers in each batch. As a result, in addition to improving productivity, we
reduced energy consumption by 66%*2 per wafer.
*1: The number of wafers that can be batch processed will differ according to the process.
*2: Compared to the Poly-Si process on existing equipment as of 2007.

High-frequency power efficiency improvement
Power efficiency (%)
80.0
70.0
60.0

●

50.0

Plasma etch system Tactras™ Vigus™

By significantly improving efficiency of internal high-frequency conversion
circuits for high-frequency power of plasma production with a high level ofpower consumption, we reduced energy consumption by approximately 40%.
In addition, an additional 30% reduction was achieved by moving a constanttemperature circulator (chiller) for electrode temperature control with a similar
high level of power consumption from the auxiliary equipment area closer to theequipment itself and reducing the load on internal components. Also, features
such as chiller flow reduction, high-frequency power-off, and vacuum transfer
pump-off, etc. were developed, and we aggressively adopted usage of an
automatic sleep mode that switches to an energy saving state while idling.
●Single wafer cleaning system CELLESTA™-i

20

Equipment category

Model

Plasma etch system

TactrasTM VigusTM

50

Thermal processing system

TELINDY

66

Single wafer CVD system

Triase+TM EX-IITM TiN

50Single wafer plasma treatment system

Triase+56

Coater/developers

CLEAN TRACKTM LITHIUS ProTM Z

52Single wafer cleaning system

CELLESTA -i

69

Scrubber system

NS300+

69

Gas chemical etch system

Certas WING

Wafer prober

Precio nanoTM

TM

Reduction rate (%)

PE

SPA i

TM

TM

30.0
20.0
10.0
0
0

1000

56
69

2000

Power output (W)Energy-saving equipment

3000

Existing equipment

Liquid chemical circulation collection
Process block (front)

We adopt a system that is able to recycle liquid chemicals for cleaning wafers
in the supply tank without disposing them in our selected models. The chamber
cup of this equipment has a liquid waste separation structure, and by separating
and collecting liquid waste by liquid chemical type, it is possible to recycle liquid
waste. With this system, the amount of liquid waste consumed is reduced, andit contributes to reducing the customer’s waste treatment costs in addition to
reducing the power consumption of the heater.

TM

40.0

Process block (back)

SPIN Area

SPIN Area

SPIN Area
Area
SPIN

SPIN Area
Area
SPIN

Liquid chemical
supply tank
HeaterHeaterCirculation line
Recycle line
Liquid waste from the spin area is returned to theliquid chemical supply tank and reusedTEL Group plant and office electricity
generated with PV power

Plant and office initiatives%
22
increase
Electricity consumption(Million kWh)

230.1

223.6

221.6

223.0

72.5
27.8

20.5
2011

Japan

2012

40.5
2013

2014

(FY)

Overseas

CO2 emissions from energy consumption(Tons)

120,913

117,396
87,124

84,847

12,0462011

Japan

15,0632012

2013* We used adjusted emission factors for individual electric power providers for the emission factor for electricity
consumption in Japan in fiscal 2014. For the emission factor for electricity consumption overseas, we used
estimated factors calculated by the Federation of Electric Power Companies of Japan based on values
published by the International Energy Agency (IEA).

36,44723,3162014

In the TEL Group, each plant and office chooses the appropriate metric (e.g.,
floor area) to measure their energy consumption by, and has set the goal of
reducing energy consumption by at least 1% each year. In order to achieve this,initiatives such as the energy saving operation of clean rooms used in productdevelopment and manufacturing, optimum temperature settings for officecooling and heating, and introduction of equipment with leading-edge energysaving efficiency (e.g., LED lighting) are being implemented. At TEL FSI, Inc.,the boilers were replaced with new ones, reducing natural gas use by 22%
from fiscal 2013. In Japan, the Taiwa Plant, Yamanashi Plant, Koshi Plant, as
well as some overseas plants adopted photovoltaic power generation systems
to generate renewable energy. The TEL Group generated 4,724 MWh in fiscal
2014, a 22% increase from fiscal 2013.
As a result of efforts such as this, in fiscal 2014, nine of the 14 TEL plants inJapan and overseas that set this goal achieved it. However, due to worsening
power emission factors in Japan and an increase in the number of overseas
plants, power consumption across the entire TEL Group was 295 GWh, about
an 11% increase from fiscal 2013. CO2 emissions from energy consumption bysource* was 157,000 tons, an increase of about 11%. However, CO2 emissions
per unit of energy consumed in fiscal 2014 has decreased from our fiscal 2011
levels.
In fiscal 2015, we also plan to set targets for overseas plants as we strive tocontinue reduction activities on a global scale.

(FY)

Overseas* CO2 emissions in fiscal 2012 totaled 87,124 tons minus a
50,000 ton reduction brought about through the use of adomestic clean development mechanism (CDM)*1

CO2 emissions in Japan with the same emission
factor for electricity consumption for fiscal 2011
(Tons)

84,847

82,13781,067

81,592

Tokyo Electron Miyagi Limited Head Office
2011

2012

2013

2014

(FY)

CO emissions from logistics and the
proportion of marine transportation
2(Thousand tons)

32.0
70
4
66
2011

42.2

37.8
25.9
66
3
63
2012

International logistics

60

2

54

58
2013

3
51

2014

(FY)

Logistics within Japan

Proportion of marine transportation in international
logistics (%)| Glossary |Logistics initiatives
The TEL Group is making efforts to reduce environmental impact caused bytransporting its products by promoting modal shift*2 for domestic and overseas
transport and adopting packaging methods with a smaller environmental
footprint.
In fiscal 2014, we reduced CO2 emissions of domestic and international
shipments to about 54,000 tons for our products by about 10% from fiscal 2013.
The share of marine transportation used for exports increased by 16 points
from fiscal 2013 to 42.2%. This increase is due to the fact that there has been
an increase in both semiconductor production equipment purchases shipped
to our customers by sea, and FPD production equipment shipped by boat. We
are promoting a modal shift by switching to marine and other transportation
methods that have a lower impact on the environment, in addition to reduction of
production lead time.

*1 Domestic clean development mechanism (CDM): The approved mechanism for CO2 emissions reduction under Japan’s Domestic CDM System (a Japanese
government scheme that allows small and medium-sized businesses to receive funding, technology, and technical support from large businesses in order to work
collaboratively to reduce CO2 emissions and trade the reduced amount as emission credits)*2 Modal shift: A shift in the mode of transportation. Specifically, switching from conventional freight transportation by truck or aircraft to means such as marine andrail, which have a lower impact on the environment.

21

Environment

Efforts to conserve resources
Reducing water consumption

Water consumption

Based on the basic metric set by each plant, the TEL Group has set an
environmental goal of keeping water consumption at the same or lower level
than that of fiscal 2012. In fiscal 2014, we achieved 11 out of the 18 goals set
regarding water used at TEL plants in Japan and overseas.
In order to achieve these goals, each plant is its streamlining pure water
facilities used in the evaluation of semiconductor production equipment anddiverting surplus water for use in other areas of the plant. In fiscal 2014, the TELGroup conducted a study to determine the amount of water used in exhaust-gas
treatment equipment. Other measures currently being used to reduce water use
include watering grass with rainwater, ensuring intermittent operation of cafeteria
faucets, using rinse-free rice, and using toilet flushing sound simulators. We
have implemented these policies across the entire TEL Group, and each plant
has effectively put these measures into practice.
As a result of all of these efforts, we were able to reduce water consumption
by approximately 2% in Japan compared to fiscal 2013. However, because wehave recently added new plants and offices outside Japan, the TEL Group’s
total water consumption for fiscal 2014 increased by about 40% compared tofiscal 2013.
For fiscal 2015, we plan to set similar goals for our overseas plants that do not
yet have resource consumption targets and continue our resource conservation
efforts globally.

(Thousand m3)

315

199

300

297

506

466

471

301

70 312104 290

613
531

296

64
2011

2012

2013

2014

Industrial water

Tap water

Groundwater

Overseas use

8yearsconsecutive
Achieving a recycling rate of 97% or more

Initiatives for reducing waste
In its efforts to minimize waste, the TEL Group recycles as much generated
waste as possible, and disposes of the remaining non-recyclable waste in aproper and responsible manner.
Our goal is to maintain a recycling rate* of 97% or more in Japan. With arecycling rate of 98.0% in fiscal 2014, the TEL Group has consistently achieved
this goal for eight years since fiscal 2007. Also, in fiscal 2014 the Groupmeasured the volume of waste generated at its plants and offices outside Japan,
and confirmed a recycling rate of 68.6%. Tokyo Electron Taiwan Limited (TET)
set a goal of a 66% or higher recycling rate and achieved a 97% recycling rate
for fiscal 2014 as a result of its efforts.
We will continue to monitor the volume of waste generated as accurately as
possible and implement measures to reduce waste across the TEL Group.

Recycling rate and generation ofincinerated and landfill waste (Japan)
98.1

97.4

97.3

98.0

Target: Maintain recycling rate of 97% or more

331
245

2011

215

2012

2013

172

2014

Incineration and landfill (Tons)
Recycling rate (%)

I n Fo c u s Reuse of the heater unit
Replacement parts during recovery

Up until now, when the heater used in a thermal processing
system deteriorated and could no longer be used due tocontinuous use, the entire heater was replaced with a newunit, however, these days replacing with reconditioned
equipment that optimizes reusable parts has become
mainstream. This helps to keep waste to a minimum, andalso achieves cost reductions.

| Glossary |22* Recycling rate: Recycled amount ÷ amount of waste generated × 100

(FY)

1
2

1) Insulation

342) Heater3) Cooling pipe

4) Bottom fiber
block

(FY)

Initiatives for chemicals
Ratio of RoHS compliant components for EU.5%98
or moreEquipment containing 98.5% or moreparts that meet the EU’s RoHS
Thermal processing system
Single wafer CVD system
Wafer prober
Etch system
Coater/developers
Surface preparation system
Wafer bonding/debonding system

Volume of PRTR Class I designatedchemical substances handled (Japan)(kg)

14,361

13,7091,617

169

11,732
5,071

2,059

2,031

4,541

3,787

8,469

12,665

4,144

8,203
5,914

2011

2012

2013

6,462

2014

Hydrogen fluoride and its water-soluble salts
Methylnaphthalene
OthersVisiting a quartz glass manufacturer| Glossary |(FY)Chemicals contained in products
Reducing regulated chemical substances contained in products is essential whenmanufacturing environmentally friendly products. We freely disclose chemical
substance safety data sheets – (M) SDS – based on GHS*1 safety regulations aswell as safety information on any substance of very high concern (SVHC) that ismore than 0.1% present in our products, according to the EU’s REACH regulation*2.
In addition, we strive to stay up to date on the regulatory situation in every
country, respond quickly to any changes, set our own standards, and develop
equipment that will reduce the use of regulated chemical substances. For
example, we implemented measures to manufacture equipment that complies
with the EU’s RoHS Directive*3 and is at least 98.5% composed of substancesthat meet the directive. In fiscal 2014, we achieved this standard in an additional
10 models, and as a result, nearly all of our products now comply with the RoHS
Directive. Furthermore, to effectively become compliant with the EU’s REACH
regulation as well, we introduced a new examination process for chemicals
contained in our products based on the JAMP AIS*4. By the end of March 2015,
we aim to completely switch from using our supplier’s chemical survey method
to the TEL Group’s new examination process.
In the future, we will continue to quickly respond to all laws and regulations inevery country and share our initiatives both within the TEL Group as well as outsidecompanies to promote the global effort to reduce harmful chemical substances.

Management of chemical substances
The TEL Group uses chemical substances mainly in the development andmanufacturing phases of our products, and in accordance with the Japanese
PRTR*5 law, we ensure that chemical substances regulated under the law aremanaged and the amount used and discharged is consistently monitored.
In fiscal 2014, we handled 12,665 kg of PRTR Class I designated chemical
substances. In addition, whenever we introduce a new chemical substanceor change how a previous substance was used, we make sure to check forenvironmental, health and safety risks and take the necessary measures before
adopting the new substances or method. Furthermore, we make sure to properly
dispose of the hazardous substances after use through either specialist waste
disposal contractors or our in-house processing equipment.

Green procurement
The TEL Group, in cooperation with our suppliers, is promoting initiatives toreduce the impact we have on the environment. We have posted the Guideline
for Green Procurement on our website, and in addition to increasing awarenessof the TEL Group’s approach to green procurement, conducted surveys with
our main suppliers, summarized and gave feedback based on the results. Using
this as a foundation, we are continuing efforts with our suppliers to carry out
environmental activities.
In addition, to continue to create an open dialogue between us and our
suppliers, we visited a quartz glass manufacturer in fiscal 2014 that produces
an important part for our semiconductor manufacturing equipment. We received
a factory tour, attended a presentation on the quartz glass life cycle andthe factory’s environmental initiatives, and introduced the TEL Group’s own
environmental initiatives.

*1 GHS: Globally Harmonized System of Classification and Labelling of Chemicals. A system agreed upon by the United Nations that is intended to provide unified
standards across various countries for the classification of hazard level, labeling and the content of (M) SDS.
*2 REACH: Registration, Evaluation, Authorisation and Restriction of Chemicals. A regulation pertaining to the registration, evaluation, authorization and restriction ofchemicals. For products containing SVHC amounting to more than 0.1 wt% in particular, manufacturers are required to provide information on the SVHC content of
their products as well as information to ensure the safe use of the products.
*3 RoHS: Restriction of the Use of Certain Hazardous Substances in Electrical and Electronic Equipment.
*4 JAMP AIS: Article information sheet (AIS) promoted by the Joint Article Management Promotion-consortium (JAMP). This sheet is used to deliver basic information
on regulated chemical substances.
*5 PRTR: Pollutant Release and Transfer Register. A system under which the use of chemical substances that may be hazardous to human health and the ecosystem,
their release into the environment, and their transfer (contained in waste) off the original business premises are identified, tabulated, and disclosed.

23Social Contribution—Construction of a dream-inspiring society—
At the TEL Group, we strive to nurture future generations and engaging in revitalization activities that respondto local needs based on our commitment to “allow everyone to achieve prosperity, construct a dream-inspiring
society, and create new technology for the global community.” We encourage promotion of a society that takes
advantage of the Tokyo Electron identity, and work to create relationships where everyone can grow together.

Support for science education (Japan)
Sponsored Science Intercollegiate
The TEL Group is a special sponsor of the Science Intercollegiate (sponsoredby the Ministry of Education, Culture, Sports, Science and Technology), an
event where students studying the field of natural science announce the resultsof their research and compete with one another. It represents the advance ofJapan’s science and technology and provides skills necessary for sustainable
development, fostering the learning of next-generation engineers. The TELGroup endorses this event as a place necessary for students to enjoy friendly
rivalry as well as for promoting incentives for future research activities, and we
support the students’ independent research activities.

Enthusiasm of students who took part in the Science
Intercollegiate

Sponsored the Shinichi Hoshi Award and robot creation workshop
In 2013, Nikkei’s Shinichi Hoshi Award was established as a literary award for
exploring scientific ideas. Excellent works with original ideas that look to the
future and that have fresh outlooks that inspire are awarded. The TEL Group
was awarded the Tokyo Electron Award. In addition, a line tracer robot workshop
was held as a related event for elementary and junior high school students at
the Setagaya Literary Museum in Tokyo, with TEL Group employees acting as
instructors.

Awarding the Shinichi Hoshi Award

Sponsored “Let’s talk with outer space!”
The TEL Group participated as a business sponsor for “Let’s talk with outerspace!—Connecting outer space and the sea” (organized by Mainichi Shimbun),an event where live transmissions are sent between Astronaut Koichi Wakata
who was commander of the International Space Station (ISS), and the Shinkai
6500-manned research submersible currently conducting drills in the Pacific
Ocean. Along with an Outer Space Lecture held before the live feed about
the origin of space and the Hayabusa asteroid explorer, around 130 children
attending the event at Roppongi Hills in Tokyo listened attentively to stories
about outer space and the deep sea that they would normally be unable to hear,broadcast in real time from outer space and the depths of the ocean.

Live feed communication with astronaut Koichi Wakata

V o i c e Participation in a science education event

My three children took part in the “Let’s talk with outer space!” event aimed
at elementary, junior, and senior high school students. I watched the children
listening with rapt attention, and the phrase “sense of wonder” came to mymind. Compared to adults, children are much more curious and sensitive to theunknown and mysteries. The event was a great way for them to learn about
science while having fun. Though the contribution to society is not immediately
obvious, I believe that offering a great opportunity like this as a business sponsor
is very meaningful.

24

Tetsushi Nagoya

FPD Process Equipment Dept.
Tokyo Electron Limited

Tohoku Recovery Project

Certificate of appreciation for Tohoku recovery
assistance

Immediately following the Great East Japan Earthquake, the TEL Group’s
Tohoku Recovery Project team began focusing on providing a variety of ongoingsupport programs. In addition to monetary and item donations—such as benchcoats—to the disaster-hit areas, we have carried out visiting lectures to assist
learning in the disaster-hit areas, and held charity concerts.
We hope to help contribute to the recovery of disaster-stricken communities bybringing joy to the local children and residents. Our efforts were recognized andTEL was awarded a certificate of appreciation by the Minister of Health, Labourand Welfare in 2014.

Chronology of the Tokyo Electron Group’s recovery operationsYear
implemented

Content (target)

Category

535.9 million yen cash donation(Japanese Red Cross Society and local governments)
Inauguration of the Tohoku Recovery ProjectSpecial sponsor for “Let’s talk with outer space! Milky way
2011 classroom” (elementary, junior high school students)

Lesson at a visiting lecture

2012

2013
Photo message in response to the bench coat
donationsContributions
and donations
Other
Revitalization(education)

Special sponsor for “Let’s talk with outer space! Starry skies
concert with Ayaka Hirahara” (general public)

Revitalization(culture)

Donated 11 PV power generation systems (public facilities)

Contributions
and donations

Special sponsor of a reconstruction charity concert, “The MusicalSound of Recovery Reverberates in Miyagi” (general public)

Revitalization(culture)

Donated a research facility to Tohoku University (university,
research institute)

Revitalization(education)

Providing students with workplace experience, visiting lectures(elementary, junior high school students)

Revitalization(education)

Donated common items to about 750 locations of temporary
housing (temporary housing areas)

Contributions
and donations

Sponsor for a Great East Japan Earthquake memorial charity
ballet show, the Grand Gala Concert (general public)

Revitalization(culture)

Sponsored “Fairies’ Fly to the World” dance event (junior highschool students)

Revitalization(education)

Donated about 1,700 bench coats (for public health nurses etc.,
caring for disaster victims)

Contributions
and donations

Providing students with workplace experience, visiting lectures(elementary, junior high school students)

Revitalization(education)

Participated in and sponsored Tohoku University’s Tohoku Forumfor Creativity (university, research institute)

Revitalization(education)

Other social contribution activities
Environmental conservation

Revitalizing local communities

Educational support activities

Participated in the Corporate Afforestation Program

Sponsored a national women’s corporate relay

Organized by “Science Soccer School”(Tokyo Electron Tohoku)

marathon or “Queen’s Ekiden” in Miyagi as a special

Planting trees in Tokyo Electron Forest(Tokyo Electron Yamanashi)
CSR/groundwater recharge tree planting activities(Tokyo Electron Kyushu)
Office greening campaign (Tokyo Electron (Shanghai)sponsor (Tokyo Electron/Tokyo Electron Miyagi)
Sponsored the Kumamoto Castle Marathon(Tokyo Electron Kyushu)
Sponsored Tokyo Electron Nirasaki Bunka Hall Naming
Right Memorial Concert (Tokyo Electron Yamanashi)

Limited)Sponsored Nikkei Education Challenge, provided lecturers
Sponsored educational radio programs:“YumeYume Engine!”, “Fairies’ Fly to the World”
Sponsored the All Japan High School Culture Festival
Kosen Robot Contest (Tokyo Electron FE)
Organized Mr. Denjiro's “Talk about Fun Science!”* All activities listed without a company name were sponsored by Tokyo Electron Co., Ltd.

25

Social contribution—Construction of a dream-inspiring society—

Activities overseas
Semiconductor scholarship programs in Korea and China
The Korea Semiconductor Industry Association has been a main supporter ofeducation programs (taught by semiconductor and device manufacturers) for
talented semiconductor engineers since 2006. As a member, Tokyo Electron
Korea Limited also supports this scholarship program and since 2008 grants
a scholarship to one exceptional science and engineering student studying
semiconductors every year.
In addition, with the goal of contributing to the expansion of China’s industry,
Tokyo Electron (Shanghai) Limited established the Tokyo Electron Scholarship
at Peking University for students in the Microelectronics department.

Semiconductor scholarship award ceremony

Initiatives for the environment and social welfare in the U.S.
As part of TEL’s “Technology for Eco Life” campaign, Tokyo Electron U.S.
Holdings, Inc. (TEH) is focusing its community outreach efforts on local
environmental and social programs.
For more than 10 years, the U.S. headquarters of TEH in Austin has
continuously participated in Keep Austin Beautiful trash clean-ups. Employees
are also provided with many other opportunities to participate in environmental
conservation activities such as maintaining an employee garden, and taking partin a cell phone recycling program that benefits biodiversity programs.
TEH also sponsors such non-profit organizations as the Meals on Wheels
program (which delivers meals to disabled elderly people), the Juvenile Diabetes
Research Foundation (which researches diabetes in children), The Nature
Conservancy (a world-renown nature conservation group), and the international
NGO Habitat for Humanity (which supports the construction of housing) throughscholarships and volunteer initiatives. In addition, TEH is also an advocate for
STEM* education programs in Texas, where their offices are located.

Habitat for Humanity activities

External evaluation (main awards received)
Category

Customer

Equipment/
production

Environment/
safetyCommunication

Awards received

Sponser

2013 Preferred Quality Supplier Award (PQS award)Intel Corporation

Fiscal 2013 Best Supplier Award for evaluation of
stable operation as an equipment manufacturer

Renesas Yamagata Semiconductor Co., Ltd.

Excellent Partner Award

Sony Semiconductor Corporation

Good Partner Award, Partnership AwardTOSHIBA Semiconductor & Storage Products Company

2013 Best Supplier Award

LG Display

2013 Best Suppliers of Equipment and Parts

Shanghai Huali Microelectronics Corporation (HLMC)

20th Semiconductor of the Year Awards Grand Prize inthe semiconductor manufacturing equipment category

The Semiconductor Industry NewsBest Quality Award

Semiconductor Manufacturing International Corporation (SMIC)

Science Park Carbon Reduction Award and Parks and GreenSpaces Adoption Award (Tokyo Electron Taiwan Limited)

Hsinchu Science Park Administration

Selected as the Fiscal 2014 Excellent Foreign Invested Company
for Green Development (Tokyo Electron (Kunshan) Limited)

City of Kunshan

SEMI Technical Committee Award

Semiconductor Equipment and Materials International (SEMI)FTSE4 Good Index Series

FTSE
Diawa Investor Relations Co., Ltd.

2013 Internet IR Commendation Award
Gold Award in the magazine advertising category
at the Japan BtoB Advertising Awards

BtoB Advertising Association Japan* Unless the name of the award recipient company is specified, the award is assumed to have been presented to Tokyo Electron Limited.

| Glossary |26*STEM: science, technology, engineering, and math education; it integrates and organizes existing technology education, and science and math education.

Comments from a Third-Party Expert
I have read the Environmental and Social Report 2014 ofTokyo Electron Limited (“the Report”) and present the following
comments as a third-party, taking into account my observations
concerning last year’s report.

Priority CSR issues

One feature of the Report is a clear statement at its beginningof priority CSR reporting issues from the perspectives of
stakeholders and business continuity and explanations of specificdetails. This shows the reader that TEL places a high priority
on the soundness of its financial footing, corporate governance,
information security, and product quality. Reinforcement offundamental organizational systems, in other words effective
governance systems, is crucial for addressing these CSR issues.
Governance is a decisive element of an organization without
which CSR measures cannot be undertaken. Accordingly, it
is commendable that TEL substantially increased reporting
dedicated to explaining its corporate governance policy. Readers
will understand that CSR programs are not just incidental tomanagement, but are a core aspect of management principles
and policies and will see the importance of organizational
development from reading about these priority issues. At the endof the Report, TEL’s current progress towards its CSR targets
and its many completed goals are clearly presented to the reader.

Initiatives concerning employees

Employees play important roles in addressing priority issues
and achieving targets. However unlike other managerial
resources, employees cannot be placed under the influenceof market principles. For this reason, the Report discusses thedevelopment of work environments that are beneficial for all
employees and skill development and explains the status of
those measures. TEL has set a target of 20% foreign nationals
within recent-graduate hiring, but measures concerning thistarget were still underway during the year under review sofurther reports in the future are desirable. As TEL continues tomove toward globalization, I believe that TEL should consider
increasing disclosure concerning changes in workforce
composition, details concerning foreign employees, the ratioof male and female employees and managers, measures toaddress the shrinking workforce and population, the statusof overtime work, and financial policies including retirement
pay, pensions, and stock options. TEL has an extremely highretention rate of 94.2% three years after hiring, indicating thatits employee initiatives are effective, and that this will likely havea positive impact on addressing priority issues.

Environmental initiatives

TEL has set goals and has already taken measures with a
global outlook to address environmental issues such as climatechange, depletion of water resources, and waste. In response
to climate change in particular, TEL set a goal of halving energy
consumption in its major models by fiscal 2015, but goal wasachieved ahead of schedule in fiscal 2014, a noteworthy
accomplishment. TEL also achieved reductions in energy
consumption per unit of production at nine of its 14 major
plants, but total company-wide carbon dioxide emissions fromenergy sources increased 11% to 157,000 tons as a result of
an increase in the number of overseas plants and higher power
emissions factors. I expect that TEL will include its overseas
plants in its comprehensive environmental management in the
future.
TEL plans to combine with an American company, and it is likelythat there will be a review of its CSR structures in the future.
At that time, TEL should strive to maintain and enhance thesuccessful CSR systems that it has established and to report
the details to its stakeholders in an accessible manner so that it
can gain the trust and understanding of the public.

(This third-party comments does not constitute an opinion on the accuracy orcompleteness of the information contained in this report.)

Yoshito Nakamura

Certified Public Accountant
Adjunct Instructor of Toyo University andthe Open University of Japan
Chairman of the Evaluation Committee for
Independent Administrative Institutions,Japanese Ministry of Defense
Auditor of the Supporting Organization of JOCV
Auditor of Foundation for Accounting Researchin Construction Industry

Response to the Third-Party Comments
We are deeply grateful to Mr. Nakamura, who has provided us
guidance by presenting these third-party comments since the2010 Environmental and Social Report. His insight has helped
us to steadily implement our Group’s CSR activities.
In response to comments we received last year, this year’s
report includes information regarding the relationship between
CSR activities and corporate governance systems, thedevelopment of systems overseas, and the status of progress
regarding those systems. In addition, this year we identified
priority CSR reporting issues and prepared this report based on
those issues.

We are aware that the employee initiatives andcomprehensive environmental management that includes
overseas plants are also key issues, and we will continue toaddress them.

Toshiya Matsuda

Director
Corporate Environment
Promotion Dept.
Tokyo Electron Limited

Moyuru Yasuhara
Director
Corporate Branding
Promotion Dept.
CSR Promotion Dept.
Tokyo Electron Limited27

Tokyo Electron GroupCSR Goals

The Tokyo Electron Group carries out CSR activities according to core subjects of ISO 26000 with medium-term goals
established. For fiscal 2014, we looked into subjects that each department needs to focus on, and established specificactivity themes and goals. In addition, each of these activities is linked with selective report issues (materiality; pp. 6–7).
As of June 2014

CSR

Promotion of high quality management and stakeholder communication
Selective report issues ▶ [Governance/ethical behavior and compliance] [Social contribution activities]
Activity theme
EICC internal education

High quality
management

Establish governance[Achieved]
Established CSR Promotion Meeting and initiated activities
Appointed CSR Promotion Director

Social contribution activities[Achieved]
Survey of company-wide social contribution activities (6 domestic and 6 overseas
companies)

Improved Internet communications[Achieved]
Continued regular Internet communications and enhancement thereof
Established new CSR page on intranet

Communication

Ethics
CSR

Achievements[Achieved]
About 130 participants in the internal seminar, expanded to overseas key location(Four companies in the US, one company in Taiwan, two companies in China, one
company in Korea, and two companies in Europe)

ISO Core subjects

Organizational
governance

高品質経営とステークホルダーコミュニケーション
Compliance implementation and improved ethical values
重点報告課題▶［ガバナンス／倫理・コンプライアンス］［社会貢献活動］
Selective
report issues▶ [Governance/ethical behavior and compliance] [Information security]

Activity theme

Achievements

Ethics and complianceeducation

Implement ethics and complianceeducation worldwide[Achieved]
Finished by all employees of TEL Group in Japan, and 80% of the overseas groupcompany employees

Workplace environment
free of harassment

Implementation of web-based power
harassment education for the TELGroup in Japan[In progress]
Implementation of new web-based education scheduled for July 2014

ISO Core subjects

Human rights
Fair
operatingpractices

Personnel affairs Pleasant working conditions and employee career development assistanceSelective report issues ▶[Achieving workplaces with vitality] [Workforce development] [Safety and health management]
Activity theme

Achievements

Work-life balanceContinuation of measures forchildcare support[Continuing]
Shorter working hour system for childcare—Under three years old: 50 users’;
Over three years old but not finished elementary school: 109

Occupational safety
and healthThorough implementation of
employee healthcare by department[Continuing]
Began providing information to GMs for “employees that require healthconsideration”

Diversity

Diverse workforces in line with thisshift toward globalization[In progress]
Foreign nationals are 20% percent of new hires

Workforcedevelopment

Implementation of training tounderstand different cultures[Achieved]
A total of 115 people participated in training to understand different cultures

SafetyEncourage an environment with the highest priority on the safety and health of all personnel

ISO Core subjects

Labor
practices
Human rights

Selective report issues ▶ [Safety and health management]
Activity theme
Product safety

Accident prevention

28

Equipment designs with timely
support of safety regulations in
all regions
Preventing accidents before they occur.
If an accident occurs, investigation of
the cause of the accident andpreventative measures, horizontal
deployment of countermeasures andprevention of similar accidents.

Safety education

Safety skills from the bottom up by
including practical education

Safety management

Safety management

Achievements

ISO Core subjects[Achieved]
Completed basic expansion of shipping equipment to new overseas plants[In progress]
Compared to fiscal 2013, the number of accidents that could have led to severe
injury was reduced by 40%, and personal injuries were reduced by 20%.
Work site safety check before delivery of equipment, and expansion of point and call
activities.
[Achieved]
Provided all types of education such as advanced safety education (total 9,000 participants),
online education for raising awareness of work accident prevention (10,000 participants),
traffic safety education and various types of online education (4,000 participants in Japan)[Achieved]
Implemented global safety meetings (twice a year), implemented safety and healthcommittees by plant and office and safety activities by unit

ConsumerissuesLabor
practices

Quality

Striving for world-class product and quality
Selective report issues ▶ [Product and quality]
Activity theme

Achievements

Policy and system
improvement

Share and publicize quality policies
and quality systems[Achieved]
Completed implementation as planned for the seven key locations overseas
Expansion of global CSR promotion activities is now possible

Regulations andmanuals improvement

Revision of regulations and manuals
shared throughout the company[In progress]
Coordinating with related responsible departments and scheduled to complete by
March 2015

Procurement

ISO Core subjects

ConsumerissuesDevelopment of a trusted supply chain management framework
Selective report issues ▶ [Supply chain management] [Conflict minerals response]
Activity theme

Supply chain
management

Environment

Achievements

CSR activities across the supply chain[Achieved]
Implemented annual surveys compliant with EICC requirements for about 300 key
suppliers, and gained a grasp of the situation

Survey of the supply chain’s
conflict minerals response[Achieved]
Implemented surveys for about 300 key suppliers, and learned the degree ofpermeation

Procurement BCP[Achieved]
Implemented annual surveys compliant with EICC requirements for about 300 key
suppliers, and gained a grasp of the situation

ISO Core subjects

Fair
operatingpractices
Procurement

Solve environmental issues through our leading-edge technology and services
Selective report issues ▶[Energy-saving, resource-saving products] [Reducing waste, recycling] [Reducing water consumption] [Conservation of biodiversity]
Activity theme

Products

Reduction of environmental
impact of product[Achieved]
Achieved the goal of 50% reduction in energy consumption with regard to major
models of each business unit in fiscal 2014, one year ahead of schedule

Compatibility with Chinese RoHS

[Achieved]
Expanded activities for product compatibility with Chinese RoHS to overseas
production sites

Promotion of voluntary productcompatibility with Europe RoHS

[Achieved]
Continue to ensure that major models of each business unit contain 98.5% or moreparts that meet the EU’s Restriction of the Use of Certain Hazardous

Compliance with environmental
regulations of each country

Procurement
and logistics

Plants and offices

Environmental
management

Achievements

ISO Core subjects[Achieved]
Continue to ensure products’ compliance with the EU’s Registration, Evaluation, Authorisation and Restrictionof Chemicals (REACH) framework as well as with labeling requirements based on the Globally Harmonized
System of Classification and Labelling of Chemicals (GHS) and battery regulations of each country.

Promotion of green procurement[Achieved]
Implement progress of environmental activities surveys for about 300 key suppliers,and get a grasp of the situation

Reduction of environmental
impact of logistics[In progress]
Promote a modal shift. Continue monitoring.

Promotion of reducing the energy
consumption (Reduced 1% fromthe previous fiscal year)[Achieved]
In fiscal year 2014, 9 out of 14 plants that set goals’ in Japan and overseas achieved
them

Reduction of water consumption(Maintaining the level of fiscal
2012)[Achieved]
In fiscal 2014, 11 out of the 18 goals set in Japan and overseas were achieved

Recycling waste(Maintaining a recycling rate of 97%
or more in Japan)[Achieved]
The recycle rate for fiscal 2014 was 98% in Japan, and overseas areas that set goals
achieved them

Environmental management[Achieved]
Maintained ISO 14001 certification for the Group's plants

Environmental education[Achieved]
Implemented environmental education overseas, for a total of about 10,000
participants including participants in fiscal 2013 in Japan

Environmental communication[Achieved]
Continue to publish Environmental and Social Report.

Conservation of biodiversity[Achieved]
Based on the guidelines, organized ecosystem tours multiple times at each of theplants in Japan

Environment29

Performance Summary
Environment
Category

Environmental management
Biodiversity

Logistics

Details

Japan

10

7

3

Total number of ecosystem tour participations at offices in Japan

16

16

-

Total number of ecosystem tour participants at offices in Japan

42

42

-

54,230 t

3,099 t51,131 t

CO2 emissions of logistics
Overseas transport marine transportation rate

42.20%--

79,426 KL

58,927 KL

20,499 KL

295,470 MWh

222,976 MWh

72,494 MWh

Gas consumption (crude oil equivalent)

3,877 KL2,027 KL

1,850 KL

Fuel consumption (crude oil equivalent)

1,160 KL

1,156 KL

4 KL

CO2 emissions from energy consumption

157,360 t

120,913 t

36,447 t

Power consumption

Scope1 CO2 emissions

11,154 t

7,550 t3,604 tScope2 CO2 emissions

146,206 t

113,363 t

32,843 t

Non energy-derived greenhouse gas emissions

20,794 t--

NOx emissions

9.7 t

-

-

SOx emissions

2.8 t

-

-

0t

-

-

Use of ozone-depleting substances
Power generated by PV power generation systems

4,724 MWh

4,698 MWh

26 MWhBusiness trips by employees in Japan

5,707 t5,707 t-Commuting by employees in Japan

14,538 t

14,538 t-

1,670,000 m

1,058,000 m

3

Plants and offices(resources)

Plants and offices(chemical substance)
Other

612,000 m3

3

Groundwater 297,000 m
Tap water
471,000 m3
Industrial water 290,000 m3
3

Water consumption

116 t

-

-

Amount of waste generated

9,965 t8,780 t1,185 tRecycled amount

9,421 t8,608 t813 t

Use of copier paper

Plants and offices (waste)

Overseas

Number of businesses with ISO 14001 acquisitions

Energy consumption (crude oil equivalent)

Office (energy)

Breakdown

Fiscal 2014 results

Amount incinerated or put into landfill

544 t

172 t

372 t

Amount of substances regulated by PRTR law No. 1 in Japan12.7 t12.7 t-16,331 t

16,331 t-

Product shipment (Japan)

SocietyCategory

Details

Personnel & laborChildcare
support system

SafetyTCIR value

Supply chain

Supplier survey
response rate

Number of people taking childcare leave, acquisition rate

70

95%

Number of people returning to the workforce after childcare leave, reinstatement rate

53

93%

Number of people taking sick/injured child care leave

435-Childcare support leave

92

30

0.33

CSR procurement survey

94%

Procurement BCP survey

100%

Conflict minerals survey

94%

Green procurement survey

96%

Charity donations (providing donations and relief materials to charity organizations)Social contribution

Fiscal 2014 results

5%

Cash donations Community investment (expenses for supporting community activities)

38%

Commercial initiatives (expenses for anticipated effects of advertising)57%

Tokyo Electron GroupThe Tokyo Electron Group CSR Policy
Code of Ethics
I. The Code of Ethics

1. Compliance with Applicable Laws

Tokyo Electron Group board members and employees must comply at all times with the applicable laws and regulations of each country and region as well as with international regulations, in doing the
global business activities, while abiding with corporate ethics and putting them into practice in a spirit of good faith.

2. Acting in Accordance with Social Conscience

Tokyo Electron Group board members and employees must act in accordance with social conscience based on a high ethical awareness.

3. Maintaining Harmonious Relationships with Local
Communities

Tokyo Electron Group board members and employees must be aware that both themselves and the company are members of their local communities, and must strive to achieve mutually beneficial
development while collaborating with these communities.

II. Honest and Fair Business Activities
II-1 Technology, Safety, and the Environment
4. Ensuring Safety and Pursuing Quality

Tokyo Electron Group board members and employees must ensure safety and pursue quality in all their business activities including development, manufacturing, sales, service, and administration.

5. Promoting Environmental Preservation Activities

Tokyo Electron Group must conduct its business activities while maintaining harmony with the global environment.

6. Ethics in Manufacturing

Tokyo Electron Group board members and employees must engage in manufacturing with a high ethical awareness and a spirit of good faith.

II-2 Fair Trade
7. Implementing Fair and Open Competition

Tokyo Electron Group must not engage in any conduct that hinders competition in fair and open markets.

8. Fair Business with SuppliersTokyo Electron Group selects suppliers based on fair standards. When conducting business with suppliers, we must not use our dominant bargaining position in a transaction to unfairly harm the interests of suppliers.

9. Handling of Confidential Information

Tokyo Electron Group board members and employees must strictly manage confidential information of the company with special care and must not disclose or improperly use confidential information
during the term of their employment or after retirement from the company without following the proper procedures according to the company's internal regulations and non-disclosure agreements. In
addition, the confidential information of other companies must be respected and properly managed and must not be obtained by improper means.

10. Strict Export/Import Controls

Tokyo Electron Group board members and employees must comply with all applicable laws and the company's regulations based thereon concerning the import and export of goods and transfers of technology.

11. Reasonable Exchanges of Gifts andEntertainment within the Bounds of Common
Sense

Tokyo Electron Group board members and employees must not give gifts to, or receive them from, a company or individual based on a business relationship, beyond the bounds of common businesspractice in the relevant location. Giving or receiving gifts of cash or cash equivalents is prohibited, regardless of the amount (except for purposes recognized as appropriate in common practice, such as
condolences or expressions of sympathy in some countries and regions).
Furthermore, entertainment with companies or individuals with whom one has a work-based relationship must be carried out moderately within the bounds of common sense.

II-3 Relationship between the Company and IndividualsTokyo Electron Group board members and employees must not, without due cause, engage in conduct that is to their own personal benefit and contrary to the interests of the company (conduct causing conflicts
12. Prohibition of Conduct Causing Conflicts ofof interests), or which runs the risk of leading to such conduct. In addition, Tokyo Electron Group board members and employees must not use their position in their work for their own personal benefit.
Interests
13. Prohibition of the Improper Use of Company Assets Tokyo Electron Group board members and employees must not improperly use company assets for their own personal benefit.
14. Prohibition of Conduct of Harassment

Tokyo Electron Group does not allow any form of harassment in the workplace.

III. Being a Good Corporate Citizen
15. Prohibition of Insider Trading

Tokyo Electron Group board members and employees must not engage in the purchase or sale of stocks on the basis of information not disclosed to the public that they obtained in connection to theirwork duties or business transactions (insider trading).

16. Prohibition of Political Activities and Contributions

Tokyo Electron Group board members and employees must not engage in political activities at the workplace. In addition, Tokyo Electron Group does not make donations of money or company assets topoliticians (including candidates) or political parties.

17. Prohibition of Involvement in Antisocial Forces

Tokyo Electron Group must not have any relationship, including business relationships, whatsoever with antisocial forces that are likely to disrupt the public order, safety of the public, or corporate
activities. In addition, Tokyo Electron Group must not provide any financial support or accommodation for any reason to antisocial forces.

18. Respect for IndividualsTokyo Electron Group prohibits discrimination on the basis of gender, nationality, age, race, creed, religion or any other reason, while respecting each person as an individual. Tokyo Electron Group does
not use forced labor or child labor.

Personnel Policy
Respect for Human Rights

We respect the character and individuality of each person and strive to create work environments without any infringement of human rights.

Diverse Workforce

We strive to respect and understand differences in values arising from gender, nationality, age, race, creed, religion, and other attributes and to be a corporation where a diverse range of employees can work to their full potential.

Human Resource Development

We believe that each employee is the source of value creation and support the development of skills by employees.

Employee Assessment and Treatment

We provide opportunities to those employees with the enthusiasm for personal growth and engage in fair evaluation of skills and employee treatment so that employees with significant results can be rewarded.

Occupational Safety and Health

We place the highest priority on ensuring the safety and health of employees and maintain environments such that employees can work safely at our workplaces and local residents feel a sense of reassurance.

Work-Life Balance

We implement measures to enable employees to achieve a good work-life balance.

Safety Policy
Safety First

Based on the principle of "safety first," we strive to create safer products and work to maintain and improve the safety of all people involved with our products and healthy workplace environments.

Pursuit of Safe Technologies

With an awareness of the factors that impair safety and health in our various business activities, we continuously strive to create safer and more secure workplaces by making improvements concerning
those factors and through intrinsically-safe equipment designs and superior service capabilities.

Management and Employees’ Responsibility

All employees maintain an awareness of potential problems and of the need for improvement concerning the maintenance and enhancement of safety and health at all workplaces, and management andemployees act in accordance with their respective responsibilities.

Legal Compliance

We comply with safety and health laws and regulations and international rules, take into consideration industry guidelines, and strive to promote safety and health.

Collaboration and Cooperation with Society

Based on common understanding with a broad range of stakeholders, we cooperate and collaborate with society and work to appropriately meet their expectations.

Quality Policy
Quality Always

Quality is not only the foundation for customer satisfaction, but also the foundation for meeting expected production schedules and reducing downtime. We prioritize quality over temporary cost increases.

Quality Design and Assurance

We build quality into every TEL product during the design phase by focusing on leading-edge technology. By bringing quality into our processes early and focusing on quality throughout all processes, we
succeed in providing high quality products and services.

Quality and Trust

When we find a quality problem, manufacturing, sales and service departments analyze the facts and complete a thorough investigation to determine the cause, resolving the problem as quickly as
possible. Our customer can trust in our commitment to address identified quality problems.

Continuous Improvement Activities

We improve quality with an effective quality management system. This includes using quality measures, improving by applying the PDCA cycle, and practicing continuous improvement activities.

Communication with Stakeholders

In addition to providing product quality information in a timely manner, we understand and align to the expectations of our stakeholders.

Environment Policy

Environmental Goals and Continuous Improvement

We continually enhance its knowledge of environmental issues to establish voluntary goals that are reviewed by Executive Management and drive continuous improvement and full regulatory compliance.

Promotion of Environmental Technology

We aim to invest in the development of leading-edge, high value products and services that directly contribute to a sustainable society.

Environmental Contribution with ProductWe develop eco-friendly products through our leading-edge technology. We cooperate with our customers and suppliers to strive for the prevention and improvement of a wide range of environmental concerns.

Operational Environmental Impact Reduction and Preservation We quantitatively analyze and reduce the environmental impact of our global operations with activity from all levels of employees and operations.
Collaboration and Cooperation with Stakeholders and Society We actively promote collaboration and cooperation with all our stakeholders to achieve mutual understanding and conformance to expectations.

Procurement Policy

Compliance with Applicable Laws and Social Norms We engage in procurement activities with integrity in compliance with the laws and regulations of each country and social norms based on our corporate ethics.
Priority on the Environment

We conduct procurement with full consideration for reduction of environmental impact and protection of the global environment.

Fair Business Practices

We continuously seek high-value technologies and create broad opportunities for their business transactions based on the precondition of open competition.

Partnership

We prioritize relationships of trust based on mutual understanding with suppliers and conduct activities in the pursuit of mutual continuous growth.

Information Management

We properly manage the confidential information of suppliers that we obtain in the course of business.

31

TEL Eco-Life Art Contest
The Tokyo Electron Group holds the TEL Eco-Life Art Contest every year as part of its activities to raise environmental awareness.
Since 2009, there have been a total of 1,124 applications. You can find some of the winning works below.

Hello, what you are doing?

(Germany)

Cherry and the elephant are dancing on the(Taiwan)green grass under the blue sky

Playing in the Leaves

A horse under the setting sun(South Korea)

What is happening?

(Japan)(Taiwan)(Japan)Flight of wind

A butterfly in the daytime
Radiant terraced rice fields(South Korea)(Japan)The flowers are cute2012 (With the feel of a movie seenon TV recently)(South Korea)(South Korea)(USA)

A Sunflower to Two Bees

(Japan)WarmthCSR Promotion Department
Akasaka Biz Tower, 3-1 Akasaka 5-chome, Minato-ku,
Tokyo 107-6325, Japan
Tel: +81-3-5561-7000

Fax: +81-3-5561-7149

Corporate Environment Promotion Department
2-30-7 Sumiyoshi-cho, Fuchu City
Tokyo 183-8705, Japan
Tel: +81-42-333-8050

Fax: +81-42-333-8477

We use green power*(Biomass, 1,000kWh) inprinting and the bookbinding
process of this CSR report.

* Green power has generated by power
plants of Solar, Wind, Small Hydro,
Geothermal and Biomass.

The main body of this report (pages 3 to 36) was
printed on paper made from trees thinned fromforests as part of forest invigoration efforts.

PR52-180

Published: August 2014

Tokyo Electron Group Environmental and Social Report 2014

GRI Guidelines Table
1. Strategy and Analysis
1.1
1.2

Statement from the most senior decisionmaker of the organization (e.g., CEO, chair, or equivalent senior position) about the relevance of sustainability to the organization and its strategy.
Description of key impacts, risks, and opportunities.

2. Organizational Profile
2.1

Name of the organization.

2.3

Operational structure of the organization, including main divisions, operating companies, subsidiaries, and joint ventures.

2.2
2.4
2.5
2.6
2.7
2.8
2.9

2.10

Primary brands, products, and/or services.
Location of organization’s headquarters.

Scale of the reporting organization.

Significant changes during the reporting period regarding size, structure, or ownership.
Awards received in the reporting period.

Reporting cycle.

3.7
3.8
3.9

3.10
3.11
3.12

p. 4
p. 4
p. 4

pp. 4–5

3.3

3.6

p. 4

Markets served.

Nature of ownership and legal form.

Reporting period for information provided.

3.5

Page found

pp. 4–5

3.1

3.4

pp. 2–3

pp. 2–3, 6–7, 10, 18, 28–30

Number of countries where the organization operates, and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report.

3. Report Parameters
3.2

Page found

Date of most recent previous report.

Contact point for questions regarding the report or its contents.
Process for defining report content.
Boundary of the report.

State any specific limitations on the scope or boundary of the report.

Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly affect comparability from period to period and/or between organizations.
Data measurement techniques and the bases of calculations, including assumptions and techniques underlying estimations applied to the compilation of the Indicators and other information in the report.
Explanation of the effect of any re–statements of information provided in earlier reports, and the reasons for such re–statement.
Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report.
Table identifying the location of the Standard Disclosures in the report.

4. Governance, Commitments, and Engagement

p. 4

pp. 4–5

Not available
p. 26

Page found
p. 3
p. 3
p. 3

Back coverpp. 6–7
p. 3
p. 3

Not available
pp. 15, 21

pp. 21–22

Not available

Current page

Page foundp. 8, Annual Report

4.1

Governance structure of the organization, including committees under the highest governance body responsible for specific tasks, such as setting strategy or organizational oversight.

4.3

For organizations that have a unitary board structure, state the number and gender of members of the highest governance body that are independent and/or non–executive members. p. 8, Annual Report

Indicate whether the Chair of the highest governance body is also an executive officer.

4.2
4.4

Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body.

4.14

List of stakeholder groups engaged by the organization.

4.17

Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting.

5. Disclosure on Management Approach and Performance Indicators

p. 8, Annual Reportp. 8, Annual Report
pp. 6, 18

pp. 6–26

Page foundEconomic
Management Approach
Performance Indicators

EC2
EC6

Financial implications and other risks and opportunities for the organization’s activities due to climate change.
Policy, practices, and proportion of spending on locally–based suppliers at significant locations of operation.

pp. 8–9, Annual Report
p. 18
p. 31

Environmental
Management Approach
Performance Indicators

EN1

Materials used by weight or volume.

EN4

Indirect energy consumption by primary source.

EN3
EN6
EN7
EN8

EN12
EN14
EN16
EN17
EN18
EN19
EN20
EN22
EN23
EN26
EN27
EN28
EN29

Direct energy consumption by primary energy source.
Initiatives to provide energy–efficient or renewable energy based products and services, and reductions in energy requirements as a result of these initiatives.
Initiatives to reduce indirect energy consumption and reductions achieved.
Total water withdrawal by source.

Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas.
Strategies, current actions, and future plans for managing impacts on biodiversity.
Total direct and indirect greenhouse gas emissions by weight.
Other relevant indirect greenhouse gas emissions by weight.

Initiatives to reduce greenhouse gas emissions and reductions achieved.
Emissions of ozone–depleting substances by weight.

NOx SOx and other significant air emissions by type and weight.
Total weight of waste by type and disposal method.
Total number and volume of significant spills.

Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation.
Percentage of products sold and their packaging materials that are reclaimed by category.

Monetary value of significant fines and total number of non–monetary sanctions for noncompliance with environmental laws and regulations.

Significant environmental impacts of transporting products and other goods and materials used for the organization’s operations, and transporting members of the workforce.

pp. 18–19
p. 30

pp. 21, 30
pp. 21, 30
p. 20

pp. 21, 30
pp. 22, 30
p. 19
p. 19

pp. 21, 30
p. 30

pp. 20–21, 30
p. 30
p. 30

pp. 22, 30
p. 19
p. 20
p. 22
p. 19

pp. 21, 30

Labor Practices and Decent WorkManagement Approach
Performance Indicators

LA7

Rates of injury, occupational diseases, lost days, and absenteeism, and total number of work–related fatalities, by region and by gender.

LA15

Return to work and retention rates after parental leave, by gender.

LA11

Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings.

pp. 12, 14
p. 15
p. 13

pp. 12, 30

Human Rights
Management Approach
Performance Indicators

HR6
HR7

Operations and significant suppliers identified as having significant risk for incidents of child labor, and measures taken to contribute to the effective abolition of child labor.

Operations and significant suppliers identified as having significant risk for incidents of forced or compulsory labor, and measures to contribute to the elimination of all forms of forced or compulsory labor.

pp. 8–9, 17
p. 17
p. 17

Society
Management Approach

p. 11

SO3

p. 11

Performance Indicators

Percentage of employees trained in organization’s anti–corruption policies and procedures.

Product Responsibility
Management Approach
Performance Indicators

PR1

Life cycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage of significant products and services categories subject to such procedures.

PR4

Total number of incidents of non–compliance with regulations and voluntary codes concerning product and service information and labeling, by type of outcomes.

PR3

Type of product and service information required by procedures, and percentage of significant products and services subject to such information requirements.

pp. 14, 16, 17, 19
p. 14

pp. 20, 23
p. 19

Tokyo Electron Group Environmental and Social Report 2014

UN Global Compact Table
The Ten Principles
Human
RightsPrinciple 1:

Businesses should support and respect●●

the protection of internationallyproclaimed human rights.
Principle 2:Businesses should make sure that they

are not complicit in human rights abuses.

LabourContent detailed

Principle 3:

Businesses should uphold the freedomof association and the effective recognitionof the right to collective bargaining.
Principle 4:

Businesses should uphold the elimination

Business ethics/compliancep. 11

Initiatives for globalization and workforce

p. 13

diversification●

Page found

TEL™ UNIVERSITY (Internal organization forhuman resource development)

p. 13

●

CSR goals

pp. 28–29●

CSR policy

p. 31

●

Business ethics/compliance

p. 11

●

Easy-to-work workplace

p. 12

●

Initiatives for work–life balance

p. 12

●

Procurement Initiatives

p. 17

●

CSR goals

pp. 28–29●

CSR policy

p. 31

●

Tokyo Electron business activities andp. 18

of all forms of forced and compulsory
labour.

Principle 5:

Businesses should uphold the effective
abolition of child labour.

Principle 6:

Businesses should uphold the eliminationof discrimination in respect of employment
and occupation.

Environment

Principle 7:environmental issues

Businesses should support aprecautionary approach to environmental
challenges.
Principle 8:

Businesses should undertake initiatives
to promote greater environmental
responsibility.
Principle 9:Businesses should encourage thedevelopment and diffusion of●Environmental management●

Preventing global climate change●

Conserving resources

p. 22

●

Reducing waste

p. 22

●

Management of chemical substances

p. 23

●

Green procurement

p. 23

●

CSR goals●

Performance summary

p. 30

●

CSR policy

p. 31

●

Corporate governance

pp. 8–11●

Procurement Initiatives

p. 17

●

CSR goals

pp. 28–29●

CSR policy

p. 31

environmentally friendly technologies.

Anti–
Principle 10:
Corruption Businesses should work against corruption
in all its forms, including extortion andbribery.

p. 19
pp. 20–21

pp. 28–29