Tokyo Electron GroupCSR Goals
To measure the progress of CSR initiatives, the Tokyo Electron Group examines sustainability issues to be prioritized byfunctions and sets annual targets and goals. Each target and goal is linked with Materiality (important sustainability issues; p. 6).
Fiscal year 2015

Targets/Materiality

Goals and results

Theme

Sustainability management[Goal]
CSR management[Results] Ongoing. Biannual CSR
Promotion Council drives
progress. Launched monthly
briefing for timely operations.

Sustainability management

CSR

Sustainabilitymanagement
and stakeholder
communication[Goal]EICC® initiative[Results] Ongoing. Held internal seminars(twice; participants totaled 120).

Materiality:
Governance/ethicalbehavior and compliance

Communication

Stakeholder
communication
Social contribution
activities

EthicsHuman Resources
SafetyEnhance transparency and accountability.

Social contribution

Social contribution activities• Set the policy and implementation
measurements.
• Increase voluntary programs.

Harassment-free workplace[Goal]
Raise ethics awareness.
[Results] Achieved. 7,400 executives
and employees in Japan were
subject to the web-based
education.

The Code of Ethics

The Code of Ethics in linewith society’s concerns• Check conformity with the EICC ® codeof conduct.
• Review The Code of Ethics.

Diversity[Goal]

Diversity

Diversity management
initiatives and understanding
and respect for different
valuesLeverage diverse workforce and help
individuals unleash their full potential.
(Further raise employee awareness.)

Recruit foreign national
graduates.
Diversify the workforce for theglobalization of business.
[Results] Ongoing. Foreign nationals
accounting for 11.1% of newhires (joined in April 2014).
[Goal]
Cross-cultural understanding[Results] Achieved. Provided crosscultural training.

Understand and respect different values
in global operations.
(Promote internal personnel exchange
and communication.)

Occupational safety andhealth[Goal]

Better workplace to empower women(Analysis of current issues, and formulateaction plans.)

Work-life balance[Goal]

Support employees inbalancing work and family.
[Results] Achieved. Reviewed the nursing
care support system.
Ongoing. Monitored usersof the shorter working hourssystem.

Work-life balance

Support for balancing workand family

Improve working behavior to balance
work and family by offering supportsystems.

Product safety[Goal]

Safety compliance in productdesign[Results] Achieved.
• Complied with TS (TELStandard) with regard tosafety for all the group’sproducts.
• Complied with KC-Mark(Korea Certification Mark) andKorea’s Occupational Safety
and Health Act.

Product safety

Safety compliance inproduct design• Appropriately respond to requirements
for equipment safety compliance ofcustomer RFQ (request for quotation).
• Develop product safety engineers.
• Check safety compliance of newly
developed equipment.

Accident prevention[Goal]Accident prevention

Accident prevention.
Implement cause-analysis
and intelligence sharing toprevent similar accidents.

• Reduce TCIR by 38% and potential
severe injury by 50% year on year.
• Continue safety patrol, new Fab safety
checks, and preventive measures.

Safety and health firstfor everyone

Product life cycle
management

Set the policy and implementation plan.

Disclosure• Review the current system• Formulate an improvement plan

Workplaces with vitality

EHS management

Stakeholder engagement

Improve the management
system.

Diversity

Product quality

Establish a system for EICC® promotion
and provide internal education.

Ethics and compliancemanagement

EHS management

Materiality:EICC®

Annual ethics and complianceeducation worldwide[Results] Achieved. 9,200 executives
and employees worldwide weresubject to the education.

Information security

Materiality:

Communication• Take full advantage of existing CSR
management systems.
• Regular reporting to management[Goal]

Governance/ethics andcompliance

Better workplace andcareer development[Goal]
Stakeholder engagement[Results] Ongoing. Improved
transparency in environmental
and social reporting. Social
contribution activities.

Goals
CSR management

Ethics and complianceeducation
Embed ethics into practiceMateriality:

Fiscal year 2016

ThemeEmployee healthcare
Identify and respond quickly foremployee health.
[Results] Ongoing. Started employees’
healthcare alerts to supervisors.

Accident prevention. Implement
cause-analysis and intelligencesharing to prevent similar
accidents.
[Results] Achieved.
• Conducted safety patrols,
new Fab safety checks.
• Reduced TCIR* by 28% andpotential severe injury by38%, year on year.
* TCIR: Total Case Incident Rate. This is theoccurrence rate of workplace accidents(Occupational Safety and HealthAdministration (OSHA) standard) per 200,000
hours worked.

Safety education[Goal]Improve safety behaviorincluding practical education.
[Results] Achieved.
• Advanced safety update(participants totaled 8,900)• Accident prevention(participants totaled 15,000)• Traffic safety (participants inJapan totaled 1,100)

Safety education

Improve safety behavior
including practicaleducation.

Advanced safety update (goal: 100%attendance)
Accident prevention (participant number
goal: over 15,000)

Safety management[Goal]

Safety management

Clarify policies and organize
group-wide function.

• PDCA at the global EHS meeting andeach company’s safety meeting• Check and correct safety activities inall countries/regions.

Clarify policies and organize
group-wide function.
[Results] Achieved.
• Held global safety meeting(three times).
• Promoted safety activities ineach facility.

8Tokyo Electron Group CSR Goals

Fiscal year 2015

Targets/Materiality

Procurement

Theme

Developing a
reliable supply
chain management
framework

Goals[Goal]

Conduct the 2nd annual supplier CSR survey and check
improvement (of average score).
[Results] Achieved. Conducted the 2nd survey, which is compliant
with EICC® requirements, with key suppliers covering
more than 80% of procurement by amount and identifiedimprovements made (at 25% of the suppliers).

CSR activities
across thesupply chain

Conduct the 3rd supplier CSR survey with key suppliers covering more than 80%of procurement by amount.

Conflict
minerals[Goal]
Conduct the 1st conflict minerals survey.
[Results] Achieved. Conducted the 1st conflict minerals survey in
CFSI (Conflict-Free Sourcing Initiative) format, with key
suppliers covering more than 80% of procurement byamount, and identified 117 smelters certified to CFSP
standard (Conflict-Free Smelter Program).

Conflict
minerals

Conduct the 2nd conflict minerals survey.
Improve data accuracy.

BCP[Goal]

Conduct the 4th procurement BCP survey and check
improvement (of average score).
[Results] Achieved. Conducted the 4th survey with key suppliers
covering more than 80% of procurement by amount,
identified improvements made (at 41% of the suppliers),
and conducted improvement activities at low-scoring
suppliers.

BCP

Conduct the 5th procurement BCP survey with key suppliers covering more than
80% of procurement by amount.

Quality
improvement[Goal]
Reduce accidents resulting in property damage.
[Results] Achieved. Reduced by 7.7% year on year.

Quality
improvement

Reduce accidents
resulting inproperty damage

Based on a reduction plan, reduce accidents resulting inproperty damage caused by products by 20% year on year
across the Group.

Quality
management[Goal]

Improvingcustomersatisfaction

Improve quality ofequipment training

Survey of training participants:
Goal: Average score of 4 or above (out of 5)
Provide customers and service engineers with training
curriculums that cover knowledge and operation skills
required for equipment safety and safe operations, as wellas maintenance methods, to improve customer satisfaction
and service quality.

Improvingcustomer
satisfaction

Customer satisfaction survey:
Goal: Score 3 or above (out of 4) in all items.
Conduct survey, analysis, action and review activities
continually to improve quality and services and deliver evenmore value to customers.

Product quality

Product life cycle
management
Conflict minerals

Quality

Theme

CSR activities
across the
supply chain

Materiality:

Supply chain
management

Fiscal year 2016

Goals and results

Launching quality
improvement
activities globally

Improve quality documents and review the periodic
review process.
[Results] Ongoing
1. Improving Group-wide common quality documents
by working with related departments in charge on anongoing basis.
2. Strengthened the periodic review.

Materiality:
Product quality
Product life cycle
management
Products

Environment

Plants andoffices

Solvingenvironmental issues
through our leadingedge technology andservices

Materiality:

Check compliance with Group-wide common regulations and manuals (PDCA).
Reducing
environmental
impact of products

Develop a roadmap for understanding the current situation
and achieving the goals.

[Goal]
Comply with Chinese RoHS.
[Results] Achieved. Expanded activities for product compatibilitywith Chinese RoHS (Restriction of HazardousSubstances) to overseas production sites.

Compliance withChinese RoHS

Global launch[Goal]

Promote voluntary product compliance with EuropeanRoHS.
[Results] Achieved. Complied with 98.5% or more parts of major
products to European RoHS.

Promotingvoluntary productcompliance withEuropean RoHS

Continue to ensure that major models of each business unit
contain 98.5% or more compliant parts.

[Goal]
Comply with environmental regulations of each country.
[Results] Achieved. Complied with REACH andchlorofluorocarbon regulations in Europe, as well
as GHS, battery regulations, and energy efficiency
regulations of each country. Strengthened overseassystems.

Compliance withthe environmental
regulations of eachcountry

Continue to ensure products’ compliance with REACH andchlorofluorocarbon regulations in Europe, as well as GHS,
battery regulations, and energy efficiency regulations ofeach country. Strengthen overseas systems.
Strengthen supply chain management.

Promoting a
reduction in energy
consumption

Reduce energy consumption: Reduce by 1% year on year.
Continue activities.

[Goal]

Reduce water consumption (Maintain the level ofFY2012).
[Results] Achieved. 10 out of 15 goals were achieved.

Reducing water
consumption

In Japan: Maintain the FY2012 level.
Outside Japan: Maintain the benchmark year level.
Continue activities.

[Goal]

Recycling waste

In Japan: Recycling rate of 97% or higher
Outside Japan: Recycling rate higher than the previous
fiscal year

Green procurement

Continue activities.
Based on analysis of survey results, plan activities, conduct
the 3rd green procurement survey, and improve evaluationof low-scoring suppliers.

Reducing theenvironmental
impact of logistics

Continue activities.

Environmentalmanagementsystem

Respond to 2016 revisions.

Reduce environmental impact of products (set newgoals).
[Results] Achieved. Set the goal of reducing energy (based onSEMI S23) by 10% (from FY2014 by FY2019).
Set the goal of reducing pure water by 10% (fromFY2014 by FY2019).

[Goal]

Promote energy consumption reduction (Reduce by 1%year on year).
[Results] Achieved. 11 out of 12 plants achieved their goals.

Plants andoffices

Recycling waste (Maintain a recycling rate of 97% ormore in Japan).
[Results] Achieved. The recycling rate was as high as 98.9% inJapan and 88.2% outside Japan.
Procurement
and logistics

Product quality
Supply chainmanagement[Goal]
Green procurement[Results] Achieved. Conducted the 2nd annual survey with key
suppliers covering more than 80% of procurement byamount and identified improvements made. With a 100%
response rate, confirmed improvements at 46% of thesuppliers.

Procurement
and logistics[Goal]
Reduce environmental impact of logistics.
[Results] Ongoing. Continuing activities.

EHS management
Environmental
contribution ofproducts

Compliance
Products[Goal]

Environmental
management[Goal]
Environmental management system[Results] Achieved. TEL Group manufacturing plants have been
ISO 14001 certified.

Environmentalmanagement

Product life cyclemanagement[Goal]
Environmental education[Results] Achieved. Provided working-level managerial personnel
with education on design for the environment.

Environmental
education

Provide web-based education on design for theenvironment.

Promoting energy
savings[Goal]
Design for the environment[Results] Achieved. Developed guidelines on design for theenvironment.

Design for theenvironment

Develop education programs and implement them forprocurement.

[Goal]
Environmental communication[Results] Achieved. Continued to publish Environmental andSocial Report.

Environmental
communication

Continue to publish Environmental and Social Report.

[Goal]
Biodiversity conservation[Results] Achieved. Based on the guidelines, organized andparticipated in ecosystem tours at each area in Japan.

Biodiversity
conservation

Based on the guidelines, conduct ecosystem tours multiple
times at each plant in Japan.
Hold symposiums.
Create a list of conservation activity targets in key areas.

Reducing water
consumption
Reducing waste/
recycling
Biodiversity
conservation

9