Tokyo Electron is Part of Your Everyday Life
Tokyo Electron Limited (TELTM) technologies help resolve environmental issues by improving the performance ofelectronic products and reducing the energy usage of products made by our customers. Semiconductor, ﬂat panel
display (FPD) and photovoltaic (PV) panel components manufactured by our customers can be found inside a wide
range of electronic products that you come into contact with every day.

Semiconductors produced with TEL’s equipment

Semiconductor
Semiconductors are a key component of personal computers, mobile
phones and other electronic products. Tokyo Electron offers a wide
range of vital semiconductor production equipment and superior
technical support to semiconductor manufacturers around the world.
Our highly productive products and technologies respond to diverse
customer needs and play an essential role in the production ofincreasingly complex semiconductors.

Key electronic device components, including CPUs, memory units, and liquid crystal displays (LCDs), are made by manufacturers of semiconductors,
FPD and PV panels, and others, who are major customers of Tokyo Electron. Our customers’ products are used in a wide range of electronic productsthat enrich people’s everyday lives with their dramatically improved performance and energy-saving features.

Tokyo Electron

Delivers production
equipment

Semiconductor, FPD,
PV panel makers

Manufacture
key components

End manufacturers

CONTENTSTokyo Electron is Part of Your Everyday Life/Contents . . . . . . . . . . p. 2
Editorial Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . p. 3
Message from the President . . . . . . . . . . . . . . . . . . . . . . . . . . . . . p. 4

Highlight
Structure of Tokyo Electron Group Corporate Principles . . . . . . . . . p. 6
Entering a New Stage
Developing New Business and Bolstering Existing Business . . . . . p. 8
Environmental Goals: Progress and Results . . . . . . . . . . . . . . . . . . p. 10

GovernanceCorporate Governance/Internal Control . . . . . . . . . . . . . . . . . . . . . p. 12

Society
Relationship with Shareholders and Investors . . . . . . . . . . . . . . . . p. 14
Communication with Stakeholders . . . . . . . . . . . . . . . . . . . . . . . . . p. 15
2

Working Together with Employees . . . . . . . . . . . . . . . . . . . . . . . . p. 16
Safety and Health Initiatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . p. 18
Quality Control Initiatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . p. 20
Procurement Initiatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . p. 21

Environment
Environmental Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . p. 22
Biodiversity Initiatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . p. 23
Environmental Initiatives in Products and Logistics . . . . . . . . . . . . p. 24
Plant and Ofﬁce Initiatives for the Environment . . . . . . . . . . . . . . . p. 28

Community
In Harmony with the Local Community . . . . . . . . . . . . . . . . . . . . . . p. 32
Comments from a Third-Party Expert . . . . . . . . . . . . . . . . . . . . . . p. 36
Response to the Third-Party Comment/Corporate Proﬁle . . . . . . . p. 37

PV panels produced with TEL’s equipment

Photovoltaic (PV) panel
Photovoltaic power is often considered to be the most promising
renewable energy source. Based on our policy to address environmental
problems through our technological prowess, Tokyo Electron isdeveloping and manufacturing PV panel production equipment as our
new business.

FPDs produced with TEL’s equipment

FPD (ﬂat panel display)
A display used in personal computers and LCD TVs to reproduce
beautiful, crisp images. Tokyo Electron offers FPD production
equipment, as well as reliable technical support, that LCD panel makers
need. With our leading-edge products and technologies, we continue tomeet our customer’s ever-increasing demands for high-quality andlow-cost solutions.

Tokyo Electron is supporting your everyday life in a wide variety of ways.

Supply end
products

Editorial Policy

Scope of Report

This report is intended to provide information on the Corporate Philosophy andTokyo Electron Group(Tokyo Electron and its subsidiaries in Japan and overseas)

Management Policies, which the Tokyo Electron Group respectively established andrevised as part of its 50th anniversary celebrations, as well as on activities that theGroup has carried out based on its written Corporate Social Responsibility (CSR) Policy.
This ﬁscal 2013 report is organized in such a manner as to enable readers tounderstand, from multiple aspects, the strategic initiatives of the TEL Group for
promoting global operations and technological innovation while aggressively reducing its
environmental impact.
At the same time, in order to ensure ease of reading for all readers, this report iscertiﬁed as meeting the Color Universal Design (CUD) requirements of the non-proﬁtColor Universal Design Organization.
It is our hope that this report will serve to strengthen communication between the

Period Covered
Fiscal 2013 (April 1, 2012–March 31, 2013). However, some information forﬁscal 2014 has also been included.

Publication Timing
Publication of this report: September 2013 (Japanese), November 2013 (English)
Publication of the next report: September 2014 (Japanese), November 2014 (English)
Publication of the previous report: September 2012 (Japanese), November 2012 (English)

TEL Group and all its stakeholders, including the public, and we hope to make use ofsuch communication in our future activities. We welcome your direct feedback andopinions of this report using the questionnaire form provided.

http://www.tel.com/environment/ehsreport/index.htm
Note: The people appearing in the photograph on this page are employees of Tokyo Electron Limited.

Guidelines Referred to in Preparing this Repor t
Environmental Reporting Guidelines 2013 issued by Japan’s Ministry of the Environment
Sustainability Reporting Guidelines Version 3.1 published by the Global Reporting Initiative (GRI)
3

Message from the President

With a Dream for the Future—
Taking on New Challenges for the Development of a
Sustainable Society
Marking the 50th Anniversary
This year marks the 50th anniversary of the founding of
the Tokyo Electron Group in November 1963. Over the past
half-century, the discipline that has undergone the most
rapid development is science and technology, particularly
semiconductors, which are now used in a wide variety ofelectronic devices. It is fair to say that semiconductors haveplayed a crucial role in the development of humanity andprovided a foundation for the current era. As a semiconductor
production equipment manufacturer, the TEL Group has madevarious efforts to accurately understand customer needs inorder to provide high-quality products.
The world is at a turning point. Emerging countries,
including in Asia, are becoming the global driving force, taking
over from Western countries that have traditionally playeda central role. In the next half century, global companies
will find that simply sticking to the same old approaches

used in the past leaves them unable to grow, since public
expectations towards businesses are constantly changing.
There was a time when it was believed that reducing
environmental impact and pursuing technological innovation
were mutually exclusive. Today, balancing the two is a matterof course, and companies cannot grow unless they operate inways that reduce their environmental impact.
It is not easy to reduce environmental impact and keep
costs low while carrying out the world’s most advanced
technological development. As part of the TEL Group’s
effort to achieve it all, we set a high goal of reducing energy
consumption on a per-wafer basis by 50% from the fiscal
2008 level with regard to major models of each business unit
as of fiscal 2015. As of fiscal 2013, we succeeded in reducing
energy consumption by 30% and are continuing to makepersistent efforts to achieve the final target for the benefit ofboth society and the TEL Group.

Organizing Corporate Principles
In celebrating our 50th anniversary, we have established a
Corporate Philosophy and revised our Management Policies
in light of the emergence of a new generation of workers andpossible changes in the business environment. Furthermore,
we have set forth a CSR Policy and developed a CSR
promotion framework. As the foundation of our CSR activities
going forward, we joined the United Nations Global Compact
in July 2013.
In carrying out and enhancing CSR activities, we will
incorporate the EICC ® Code of Conduct. By operating ourbusiness in a way that not only takes environmental issues
into account but also respects human rights, is aligned withcorporate ethics, and raises awareness of risk management,
we will establish a management structure befitting a global
company with the goal of gaining the lasting trust of our
stakeholders.

4Initiatives for Launching New Business
Originally founded as a trading company specializing intechnology, the TEL Group established its position as amanufacturer in the 1980s. Because of this history, we havedeveloped a corporate culture that encourages the flexible
and aggressive incorporation of external technologies tosupport our cutting-edge technological development. With
our most recent acquisition, we brought on board two
European and two U.S. companies that are world leaders
in cleaning, advanced packaging and thermal processing
in magnetic fields, all of which are indispensable toboth semiconductor production as well as ever-evolving
photovoltaic panel production. By combining the world-classtechnologies of these firms with the TEL Group’s expertise,
we are confident that we will be able to satisfy every need ofcustomers worldwide.

For the Next 50 Years
Throughout its 50-year history, the TEL Group has held tothe belief that its most valuable asset is its employees. In
order to continue to grow as a global provider of cutting-edge
technologies, we recognize that we need to improve ourworkplace environment to create a culture that further
encourages our employees to take on challenging tasks in a
global business environment. With continued and concerted
efforts, we are working to create an environment in which all
employees can work comfortably, productively and passionately.
By taking advantage of experience and expertise acquired
over the past five decades, the TEL Group will continue tocontribute to the development of a sustainable society byproviding high-value-added technologies and services for the
next 50 years. We appreciate your continued support.

Joined the United Nations Global Compact
The TEL Group announced its participation in the United Nations Global Compact
and was registered as a member company in July 2013. In support of the 10
principles, the TEL Group will work to maintain a harmonious pursuit of both its
corporate activities and a sustainable society.

What is the United Nations Global Compact?
The UN Global Compact is a global initiative inwhich diverse organizations, including businesses,
voluntarily participate for the development ofsustainable society. It was established by then UN
Secretary-General Kofi Annan in 2000. As of July
2013, about 11,570 organizations (including 7,580
corporate participants) from 140 countries havejoined the initiative to carry out activities based on
the 10 principles in four areas listed below:

Human Rights
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internationally proclaimed human rights; andt1SJODJQMFNBLFTVSFUIBUUIFZBSFOPUDPNQMJDJUJOIVNBOSJHIUTBCVTFT

Labourt1SJODJQMF# VTJOFTTFTTIPVMEVQIPMEUIFGSFFEPNPGBTTPDJBUJPOBOEUIF
effective recognition of the right to collective bargaining;
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t1SJODJQMFU IFFGGFDUJWFBCPMJUJPOPGDIJMEMBCPVSBOE
t1SJODJQMFU IFFMJNJOBUJPOPGEJTDSJNJOBUJPOJOSFTQFDUPGFNQMPZNFOU
and occupation.

Environmentt1SJODJQMF# VTJOFTTFTTIPVMETVQQPSUBQSFDBVUJPOBSZBQQSPBDIUP
environmental challenges;
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responsibility; andt1SJODJQMFF ODPVSBHFUIFEFWFMPQNFOUBOEEJGGVTJPOPGFOWJSPONFOUBMMZ
friendly technologies.

Tetsuro Higashi

Anti-Corruption

Chairman, President & CEOTokyo Electron Limited

t1SJODJQMF# VTJOFTTFTTIPVMEXPSLBHBJOTUDPSSVQUJPOJOBMMJUTGPSNT 
including extortion and bribery.

5Structure of Tokyo Electron Group Corporate Principles
To mark its 50th anniversary, the Tokyo Electron (TEL) Group has established a Corporate Philosophy and revised its Management
Policies. It has done this by reviewing its values, which form the foundation of its corporate mission and activities going forward as wellas its growth engine.

Corporate
Philosophy

The Corporate Philosophy defines the purpose of Tokyo Electron’s existence and its mission in society.
The basic way of thinking that forms the foundation for corporate activities.

We strive to contribute to the development of a
dream-inspiring society through our leading-edge
technologies and reliable service and support.

Corporate
Philosophy

Management Policies

CSR Policy
TEL Value

Management
Policies

6

The Management Policies contain the management values which Tokyo Electron holds as important in achieving the Corporate
Philosophy. They express the manner of thinking which underscores the general rules of management in eight points.

Profit is Essential
The TEL Group aims to contribute to the development ofsociety and industry and enhancement of corporate value
while emphasizing the pursuit of profit.

Employees
Employees are the source of the creation of value, and TELGroup employees perform their work with creativity, a senseof responsibility, and a commitment to teamwork.

Scope of Business
The TEL Group leads markets by providing high-quality productsin leading-edge technology ﬁelds with a focus on electronics.

Organizations
The TEL Group builds optimal organizations that maximize corporate
value where each employee can work to their full potential.

Growth Philosophy
We will tirelessly take on the challenges of technologicalinnovation to achieve continuous growth through businessexpansion and market creation.

Safety, Health and the Environment
The TEL Group gives the highest consideration to the safety
and health of every person connected with our businessactivities as well as to the global environment.

Quality and Service
The TEL Group strives to understand the true needs forachieving customer satisfaction and securing customer trust
while continuously improving quality and service.

Social Responsibility
With a full awareness of our corporate social responsibility,
we strive to gain the esteem of society and to be a company
where employees are proud to work.

CSR Policy

The Tokyo Electron CSR Policy is a clear codification of our fundamental beliefs and values for undertaking
CSR activities based on our Corporate Philosophy and Management Policies. The CSR Policy clarifies oursocial responsibilities and behavior as a corporation.
HIGHLIGHT

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.

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.

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.

Communication with Stakeholders
The Tokyo Electron Group discloses information relating to
the Group in a fair, impartial, and timely manner, strives toengage in two-way communications, and works to meet the
expectations of stakeholders appropriately.

Respect for Individuals
The Tokyo Electron Group respects the character andindividuality of each person. We recognize the diversityof employees, share a sense of mission, and promote thedevelopment of workplaces with vitality.

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

We promote CSR activities for sustainable corporate and social growth by referring to international frameworks, including the United
Nations Global Compact and the EICC ®* Code of Conduct. We carry out self-assessments based on the EICC ® Guidelines and integratethem into our management system in each of four areas of labor, health and safety, the environment and personnel to continue our
improvement efforts.
CSR promotion framework

President & CEO
CSR Promotion Executive Officer
CSR Promotion Department
CSR Policy

The Code of Ethics

Personnel Policy

Safety Policy

Quality Policy

Environment Policy

Procurement Policy

TEL Head Office/Group companies in and outside Japan (21 locations worldwide)
CSR promotion members

TEL Values

Having identified what drives our growth, the values we cherish and the qualities our employees seek toinherit, we developed the TEL Values in April 2006.

TEL Values

TEL Values
GlossaryPride
We take pride in providing high-value
products and services.

Challenge

Teamwork

We accept the challenge of going beyond
what others are doing in pursuing ourgoal of becoming number one globally.

We respect each other’s individuality andplace a high priority on teamwork.

Ownership

Awareness

We will keep ownership in mind as we think
things through, and engage in thoroughimplementation in order to achieve our goals.

We must have awareness of and accept
responsibility for our behavior as
respectful members of 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* theelectronics industry.
®

®

“EICC” and “Electronic Industry Citizenship Coalition” are trademarks of Electronic Industry Citizenship Coalition Incorporated.
7

Entering a New Stage

Developing New Business and Bolstering
Existing Business
To remain innovative in the ever-advancing semiconductor production equipment sector, Tokyo Electron is enhancing its businessdevelopment in frontline areas. Through corporate acquisition, we have added four new companies to the Group.

TEL Magnetic Solutions Ltd.
Establishing production technology for promising next-generation memory, MRAMTokyo Electron has been working on equipment development in order to establish production
technology for Magnetoresistive Random Access Memory (MRAM), a next-generation memory
technology that is attracting attention. In December 2012, we acquired Magnetic Solutions
Ltd., which possesses high-level technology for the important MRAM production process ofthermal processing in a magnetic field, and established TEL Magnetic Solutions Ltd.
As MRAM allows for high-speed writing with low power consumption, it is expected toreplace current mainstream technology DRAM to become a key memory technology.

Magnetic Annealing System

Activities: Development, manufacturing and sales of Magnetic Annealing System
Location: County Dublin, Ireland

TEL Solar AG
Contributing to the global environment

In November 2012, Tokyo Electron established TEL Solar AG after acquiring Oerlikon
Solar, which has world-leading technology in thin-film silicon photovoltaic panel
production. Among the many types of photovoltaic panels, thin-film silicon photovoltaic
panels generate more power than crystal photovoltaic panels, even in high-temperature
regions right on the equator and in mostly cloudy regions. By combining Oerlikon
Solar’s technologies with the technologies that we havenurtured in our semiconductor production equipment
business, we will be able to dramatically improve
conversion efficiency and productivity.
As there is growing need for eco-friendly
power generation systems, we will use ourtechnologies for the development of anenvironmentally sustainable society.

Activities: Development, manufacturing and sales of photovoltaic
panel production equipment
Location: Trübbach, Switzerland
8

KAI TM MT
PECVD
SystemTEL FSI, Inc.
HIGHLIGHT

Developing cleaning system business
The ongoing miniaturization of chips has increased the importance of cleaning processes that remove particles*, photoresist, nitride
film and contaminants.
In October 2012, Tokyo Electron established TEL FSI, Inc. after acquiring FSI International, Inc., a global supplier of innovative
cleaning solutions and advanced technologies with a broad customer base. As FSI’s processing technology and our technologies
complement each other, this combination will increase our capabilities and strengthen our product portfolio.

Activities: Development, manufacturing and sales of cleaning systems
Location: Minnesota, United States

ORION TM
Single wafer
cleaning system

StratusElectrochemical deposition system

TEL NEXX, Inc.
Ever-evolving semiconductors—Working on smaller packaging and lower power consumption
The increased demand for smartphones, tablets and other mobile devices is driving the
growth of the advanced packaging market. Advanced packaging technologies reduce
form factors, enabling smaller devices that manage power more effectively, while
delivering increased functionality.
In May 2012, Tokyo Electron acquired NEXX Systems, Inc., a market leader
in plating and sputtering equipment supplier, to serve this high growth 3D wafer
level packaging market. The wholly owned, US subsidiary was established as TEL
NEXX, Inc., broadening TEL’s equipment solutions to include high volume advanced
packaging tools.

Glossary

Activities: Development, manufacturing
and sales of ECD system,
PVD system and sputter
deposition
Location: Massachusetts, United States*Particles: Very small impurities on wafers
9Environmental Goals: Progress and Results
Based on the Environment Vision specified in fiscal 2013, the Tokyo Electron Group has set environmental goals in the four areas ofproducts, procurement and logistics, plants and offices, and environmental management. Because we expanded the scope of ourenvironmental activities by making our efforts more multifaceted, we succeeded in achieving most of the goals in fiscal 2013. We willcontinue to make improvement efforts and spread them to overseas locations.

Products

Introductory presentation on
guidelines for control over the useof chemical substances in products

Steadily making progress toward 50% reduction in environmental
impact of products and compliance with regulations of each country.
Reduction of environmental impact of productsCompatibility with Chinese RoHS

Fiscal 2013 goal

Fiscal 2013 goal

Reduce power consumption of major models of eachbusiness unit by 30% over the ﬁscal 2008 level.

Continue to ensure products’ compatibility with the Chinese
labeling standard.

Results

Reduced power consumption of major models
by 30%. (See p. 24–25 for details.)

Results

Ensured products’ compatibility with the standard.
(See p. 26 for details.)

Fiscal 2014 goal

Continue to make efforts to reduce energy consumption by
50% by ﬁscal 2015.

Fiscal 2014 goal

Compliance with environmental regulations of each country

Voluntary compatibility with the EU’s RoHS

Fiscal 2013 goal

Fiscal 2013 goal

Continue to ensure products’ compliance with the EU’s Registration, Evaluation,
Authorisation and Restriction of Chemicals (REACH) framework as well as withlabeling requirements based on the Globally Harmonized System of Classiﬁcationand Labelling of Chemicals (GHS) and battery regulations of each country.

Continue to ensure that major models of each business unit
contain 98.5% or more parts that meet the EU’s Restrictionof the Use of Certain Hazardous Substances in Electricaland Electronic Equipment (RoHS).

Results

Results

Complied with regulations in each country. (See p. 26 for details.)

Continued to ensure compatibility. (See p. 26 for details.)

Fiscal 2014 goal

Fiscal 2014 goal

Enhance compliance systems in overseas locations.

Identify challenges for making continued efforts.

Spread the activity to overseas production sites.

Procurement and logistics
Green procurement
Fiscal 2013 goal

Revise the lists of prohibited and restricted substances.

Promoting green procurement andmodal shift with cooperationof stakeholders.

Results

Revised the list. (See p. 27 for details.)
Fiscal 2014 goal

Launch activities based on the revised guideline.

Reduction of environmental impact of logistics
Fiscal 2013 goal

Promote a modal shift. Continue monitoring.
Results

Continued the activity. (See p. 27 for details.)
Fiscal 2014 goal

Continue to ensure compliance.

10

Guideline forGreen Procurement

Plants and ofﬁces
HIGHLIGHT

Enhancing efforts, both in and outside Japan, to achieve goals of saving energy,
reducing water consumption and recycling waste.
Promotion of energy conservation

Reduction of water consumption

Fiscal 2013 goal

Fiscal 2013 goal

Reduce by 1% over the level of previous year.

Maintain the ﬁscal 2012 level.

Results

Results

Achieved the goal at 80% of locations in Japan.

Achieved the goal at 80% of locations in Japan.

(See p. 28 for details.)(See p. 29 for details.)

Fiscal 2014 goal

Fiscal 2014 goalSpread the activity to overseas locations.

Spread the activity to overseas locations.

Recycling of waste
Fiscal 2013 goals

Maintain a recycling rate of 97% or more.
Continue to achieve zero emissions.
Results

Achieved the goals. (See p. 30 for details.)
Fiscal 2014 goalSpread the activity to overseas locations.
PV panels installed at Koshi Plant

Ecosystem
tour

Environmental management
Carrying out environmental education andpromoting biodiversity initiatives based on
the environmental management system.

Environmental management system

Environmental education

Fiscal 2013 goal

Fiscal 2013 goal

Continue to obtain and maintain ISO14001 certiﬁcation for
the Group’s plants.

Formulate and implement an education program(Japan only).

Results

Results

Continued to obtain and maintain certification.
(See p. 22 for details.)

Formulated and implemented the program in locationsin Japan. (See p. 22 for details.)

Fiscal 2014 goal

Fiscal 2014 goal

Maintain certiﬁcation.

Spread the activity to overseas locations.

Environmental communication

Conservation of biodiversity

Fiscal 2013 goal

Fiscal 2013 goal

Continue to publish and enhance Environmental and Social
Report.

Determine a policy and formulate a plan upon investigationand examination.

Results

Results

Published this report (Environmental and Social Report 2013)
with enhanced contents.

(See p. 23 for details.)

Fiscal 2014 goal

Fiscal 2014 goal

Publish further enhanced Environmental and Social Report.

Carry out activities based on the concept and guidelines.

Determined the concept and guidelines.

11Corporate Governance/Internal Control
Corporate GovernanceOur approach to corporate governanceIn order to maximize corporate value and enhance shareholder
satisfaction, the Tokyo Electron Group is endeavoring toestablish and operate optimal and highly effective structuresof governance based on its three basic principles: 1) Ensure
the transparency and soundness of business operations;
2) Facilitate quick decision-making and the efficient executionof business operations; and 3) Disclose information in a timely
and suitable manner.

The corporate governance framework
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 decisionmaking. Moreover, Tokyo Electron has been disclosing theindividual remuneration of representative directors since 1999
in recognition of the importance of managerial transparency
for shareholders.

The Board of Directors
The Board of Directors consists of 11 directors, two of whom
are outside directors. In order to ensure that Tokyo Electron can

respond quickly to changing business conditions, and to moreclearly define management accountability, the term of office fordirectors is set at one year.

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

Internal control/riskmanagement system
Our approach to internal control/risk management
To more effectively strengthen the internal control and risk
management systems of the TEL Group, we are implementing
practical measures in line with the Fundamental Policies
concerning Internal Controls within the Tokyo Electron Group.

Risk management system
Tokyo Electron has established a dedicated risk management
and internal control function within the General Affairs
Department, which evaluates and analyzes risks that could affect
the TEL Group, and works to reduce these risks by promoting the

Diagram of the Corporate Governance Framework, Internal Control System and Risk Management System
Annual Shareholders’ Meeting
Board of Directors· Compensation Committee· Nomination Committee

Audit & Supervisory Board

Independent Auditors· Chief Business Ethics Director· Chief Internal Control Director

Confirm the progress of improvements and give instructions
Request for improvement/Report

Representative Directors
Audit and improvement
Request forreports
improvement/ReportCompliance & Internal Control Executive Officer

Executive Officers

Internal Audit Dept. (Global Audit Center)

Committees· Ethics Committee· Information Security Committee· Export Trade Control Committee

Request for improvement/Report

Audit

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

Monitoring

Administrative Depts.

Tokyo Electron Group Corporate Governance:
Glossary

12

Check and balance

Business Depts.

http://www.tel.com/ir/policy/cg/index.htm*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.
Committee: This committee develops proposals on the executive compensation program and the compensation to be paid to representative directors, which it*2 Compensation
submits at the meeting of the Board of Directors for approval.

necessary measures. The status of risk management activities isreported regularly to the Board of Directors.

Information security
Under the TEL Group Information Security Policy and theRegulation for Management of Technical and BusinessInformation, Tokyo Electron has put in place a frameworkfor preventing information leaks and ensures the safe andeffective utilization of information assets. In fiscal 2013, basedon the results of past assessments, we made an inventory ofelectronically stored information to enhance the management ofconfidential data. We will continue this initiative.

meet semiannually, report on ethics-related issues faced byeach company, and discuss measures to further improve ethicalbehavior 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 those overseas. Moreover, theCode is appropriately reviewed and revised
in response to changes in environmental
The Code of
Ethics booklet
and social demands.
The Code of Ethics of the Tokyo Electron Group:

Following an overall review of our Business Continuity Plan
(BCP), Tokyo Electron’s Head Office redeveloped its BCP in
fiscal 2013 to respond to large-scale earthquakes. In fiscal
2014, the BCP will be reviewed at the level of plant and office.
Meanwhile, the TEL Group carries out an annual BCP drill
involving an earthquake scenario.

http://www.tel.com/environment/corp_governance/compliance/ethical.htm

GOVERNANCE

Business continuity management

Compliance system
Tokyo Electron has appointed a Compliance & Internal Control
Executive Officer from among the executive officers to raiseawareness of compliance across the TEL Group and further
improve its implementation.

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

Compliance
Our approach to 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.

Code of Ethics, Chief Business Ethics
Director and Ethics Committee
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, and presidents
of major Group companies in and outside Japan. The members

Initiatives on complianceTokyo Electron has drawn up the Compliance Regulations
setting out basic compliance-related requirements in linewith the Code. The Compliance Regulations are intended
to ensure that all individuals who take part in the businessactivities for the TEL Group clearly understand the pertinentlaws, international standards and internal company rules, andconsistently apply these rules in all of their activities.

Internal reporting system
In the event that an employee becomes aware of any activity
which may violate a law, regulation or principles of businessethics, the TEL Group operates an internal reporting system that
employees may use to report their concerns. The entire Grouphas established an ethics hotline and a compliance hotline, andthis reporting system is also in place at each overseas 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 or repercussions.

Compliance education
Through the TEL Group’s e-learning system, we provide a common
training program covering the basics of compliance, internal
control, export-related compliance, information security andother topics, which all executives and employees are required tocomplete, as well as a training program on insider trading andother subjects aimed at different levels of personnel. We also
make information on compliance issues available to employees on
a dedicated site on our Intranet and take other steps to promotebroad awareness of compliance throughout the Group.
13

Relationship with Shareholders and Investors
Our approach to shareholder andinvestor relations
Tokyo Electron is committed to making information about thecompany available in a fair, equitable and timely manner toensure that shareholders and investors can obtain an accurate,
in-depth understanding of the company and its activities andcan evaluate its corporate value appropriately. We also value
and respect opinions received from our stakeholders concerning
information disclosed and utilize their feedback as a point ofreference to guide our future corporate management.

Information disclosure methods
Tokyo Electron releases timely disclosure information via theTokyo Stock Exchange’s Timely Disclosure Network (TDnet)and promptly posts the same information on its corporatewebsite. Even when it does not fall into the category of material
information, we voluntarily disclose information which may be ofinterest to stakeholders in an easy-to-understand manner using
various communication channels, including on our website or inprinted form.
To ensure that foreign investors have fair and equal accessto our information, all information is released simultaneously inJapanese and English.

Annual shareholders meeting
To encourage as many shareholders as possible to attend
annual shareholders meeting and fully exercise their voting
rights, we send out invitations at least three weeks prior
to meeting, and avoid the date when most major Japanesecompanies hold their shareholders meetings. Shareholders
who cannot attend a meeting can vote via the Internet. We also
participate in the web-based voting platform for institutional
investors operated by Investor Communications Japan (ICJ).
Our website also carries notices of convocation, notices ofresolution, the results of the exercise of voting rights andpresentation materials.

Earnings release conference
We hold an earnings release conference to report our financial
results to securities analysts and institutional investors after
every quarter. Meanwhile, by making these conferences open
to members of the press, as well as by posting all the material
handouts on our website, we ensure that information provided at
the conference is also available to individual investors.

Basic policy on returns to shareholders
Our dividend policy is to link dividend payments to businessperformance and earnings, and our basic policy for returns toshareholders is to maintain a payout rate of around 35% basedon consolidated net income.
We aim to maintain profitable growth in order to enhance
corporate value by effectively utilizing internal reserves andconcentrating investments in growing businesses while at thesame time delivering direct returns to shareholders throughdividends based on our performance and earnings.

Materials prepared for anannual shareholders meeting
Annual Report

Presentation materials used at
an earnings release conference

Financial Review:
http://www.tel.com/ir/library/report/index.htm

Constituent of the
FTSE4Good Global Index

Presentation materials used at an earnings release conference:
http://www.tel.com/ir/library/report/index.htm
Materials prepared for an annual shareholders meeting:
http://www.tel.com/ir/stocks/asm/index.htm

Tokyo Electron has been a constituent of the FTSE4Good
Global Index since September 2003. The FTSE4Good
Global Index is a social responsibility investment (SRI)
index provided by the FTSE Group, a world-leading index
firm wholly owned by the London Stock Exchange.

14

Annual Report:
http://www.tel.com/ir/library/ar/index.htm
Factbook:
http://www.tel.com/ir/library/fb/index.htm

Communication with Stakeholders
Our approach to stakeholder
communications
The TEL Group values communication with its stakeholders, whoprovide support for its corporate activities. We set a variety ofcommunication opportunities, including web-based information
provision, the TEL Partners Day and Production Update Brieﬁng for
suppliers. We also hold a regular Employee Meeting as a platform
for communication between employees and top management,
carry out advertising activities highlighting our ties with society,and support both science- and sports-related events.
As part of our ongoing communication efforts, we identify
stakeholder expectations for the Group as well as collecting
stakeholder feedback. We will continue to make use of suchinformation in our corporate management.

Employee Meeting
The TEL Group has been holding its Employee Meeting asa platform for communication between employees and top
management on an ongoing basis. The meeting is held annually
in locations either in or outside Japan chosen alternately. Thisfiscal year, we held the meeting primarily at Group companies inJapan, namely, Tokyo Electron Tohoku, Miyagi, Yamanashi andKyushu in Japan and Tokyo Electron Korea in South Korea. The
meeting provides an opportunity for two-way communication,with senior management providing an explanation about
the Group’s current circumstances along with a message toworkers, and employees asking questions and voicing opinions.
The TEL Group will continue to promote this communication
platform and to incorporate employee feedback into its
corporate management.

Customers

Shareholders/investors

Suppliers

SOCIETY

Employee Meeting
Local
community

Employees

Admin.
org.

Supporting “The Wonder ofElements” exhibition
Tokyo Electron participated as a special sponsor in an exhibition
titled “The Wonder of Elements,” which was held from July 21 toOctober 8, 2012 at the National Museum of Nature and Sciencein Tokyo. The exhibition explained both the workings of nature andthe application of chemical elements in relation to the productionof semiconductors and PV panels, providing the wider public with
an opportunity to become familiar with those members of theperiodic table that are indispensable to leading-edge technologies.

TOPICS2013 SEMI Akira Inoue EHS*1 Award
The SEMI Outstanding EHS Achievement Award—Inspired by
Akira Inoue is sponsored by the EHS Division of SEMI, a global
industry association of major manufacturers of semiconductor/FPD
production equipment and materials. SEMI established the award
in 2000 to honor the achievements of the late Akira Inoue, who,
as well as being a past president of Tokyo Electron Ltd. and former
member of the SEMI Board of Directors, was a strong advocate forenvironment, health and safety. After the screening of nominations
by a subcommittee, SEMI grants the award to individuals who havemade significant contributions to the semiconductor industry andsociety at large in the area of EHS.
The 2013 award was presented to Mr. Ajit Manocha, CEO of
GLOBAL FOUNDRIES, on July 9, 2013 at SEMICON West 2013
in San Francisco, U.S.A. Under the leadership of Mr. Manocha,
GLOBAL FOUNDRIES has madesignificant EHS achievements. The
selection committee recognizes hisachievements in:t; FSPJODJEFOUTBGFUZDVMUVSF
t$ PNNJUNFOUUPFDPFGGJDJFODZ
in foundry operationst8 4$*2 commitment to best
QSBDUJDFTGPSQFSGMVPSP
compound (PFC) reductiont8 4$DPNNJUNFOUUPB
iDPOGMJDUGSFFTVQQMZDIBJOw
Award ceremony

The Wonder of Elements exhibition

Glossary

Environment, Health and Safety*12 EHS:* 84$ World Semiconductor Council
15

Working Together with Employees
Our approach to personnel affairs
Business growth requires that each employee, as the core of
the company, have creativity, a positive attitude, flexibility,
enthusiasm and a sense of responsibility. The TEL Group seeks
to be a corporation where a diverse range of employees canwork to their full potential.

Personnel Policy
1. 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.

%JWFSTF8PSLGPSDF
We strive to respect and understand differences in values arising fromgender, 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.

3. Human Resource Development
We believe that each employee is the source of value creation and support thedevelopment of skills by employees.

*OJUJBUJWFTGPSXPSLMJGFCBMBODF
The TEL Group has enhanced systems that help employees
continue to pursue their careers through various life events,
such as systems for balancing work and childcare.
Tokyo Electron, for example, has enhanced its childcare
support system, giving parents of children of elementary school
age or younger the option to work shorter hours. In contrast, theshorter working hour system required by Japanese law targets
parents raising children under the age of three.
Outside Japan, we implement a range of measures to improve
work-life balance in compliance with local laws and requirements.
t$IJMEDBSFTVQQPSUTZTUFN· Childcare leave · Shorter working hours for parentst/VSTJOHDBSFMFBWFTZTUFN
Users of shorter working hour system for childcare (Japan)(Persons)

100

4. 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.

50

65
34

5. 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.

8PSL-JGF#BMBODF
We implement measures to enable employees to achieve a good work-life balance.

What we do to create a workplaceenvironment that is comfortable for all
Empowering employees to reach their full potential
The TEL Group has put in place systems that support employees
in their career development and help create a workplaceenvironment that promotes job satisfaction.
t0VUTUBOEJOHFNQMPZFFBXBSEt0QFOKPCQPTUJOHTZTUFNt&NQMPZFFTVSWFZ
t&NQMPZFFTPQJOJPOTVSWFZ

85

75
47

50

0
2011
Statutory system

2012

2013

Improving the workplace environment and employee health
Placing the highest priority on the safety and health of its
employees, the TEL Group is making a Group-wide effort toprovide various supports.
t.FOUBMIFBMUIFEVDBUJPOt)BSBTTNFOUQSFWFOUJPOFEVDBUJPOt*TTVJOHBHSPVQXJEFIFBMUIEFDMBSBUJPOt4FSWJOHIFBMUIZNFBMTBUDPNQBOZDBGFUFSJBTInitiatives for globalization and workforce diversification
The TEL Group does business around the world. In fact,overseas sales account for 76% of the Group’s total sales andabout 33% of Group employees work outside Japan (as ofMarch 2013). In line with this shift toward globalization, evenGroup companies within Japan are aggressively working todevelop diverse workforces and have set a target of 20% of newhires to be recruited from among foreign nationals.

Balancing work and childcare
Last year, I returned to work after taking childcare leave. At the time, I was concerned that I might
not be able to balance work with raising my first child. Fortunately, my child has gotten used to the
day care center and I am now able to work as I used to. I am thankful for the support of my family
but above all I feel so grateful to my colleagues for their cooperation and understanding of my use of
the childcare system. I’m living proof that Tokyo Electron provides its employees with an environment
in which we can not only envision our career path but also make it a reality while at the same time
fulfilling our family obligations even after returning to work.
16

(FY)

TEL system

Noriko Shimomura
Taiwan/Asia Sales DivisionTokyo Electron Ltd.

leadership development program for next-generation leaders
and a management and organizational training program. Goingforward, TEL UNIVERSITY will continue to contribute to thegrowth of the TEL Group by developing competent professionals.

8PSLMPDBUJPOPG(SPVQFNQMPZFFT(Persons)

15,00010,000

4,015

2,435

2,680

7,908

8,004

8,186

End of March 2011

End of March 2012

End of March 2013

5,000

Professional capability development programThis program is designed tohelp employees in various jobs
acquire professional knowledge
and expertise in the Group’s coretechnologies and common basic
technologies.
Professional capability

0
Employees working in Japan

Employees working outside Japan

Foreign nationals as percentage of new hires (in Japan)
(%)
15

11.3

development program

10

4.0

5

1.0
0
2011

2012

2013

(FY)

Basic policy on human resource development

TEL UNIVERSITY
With the goal of enhancing its human resources from a medium
to long-term perspective and improving the capabilities of theorganization overall, the TEL Group has established an internal
education institution, TEL UNIVERSITY.
TEL UNIVERSITY courses include a program that provides
individual employees with world-class knowledge and skills, adevelopment program

/FYUHFOFSBUJPOMFBEFSTEFWFMPQNFOUQSPHSBN
This program provides participants with opportunities to engage
in dialogue with TEL Group executives and acquire knowledge
from experts in various fields with the goal of encouraging
participants to establish their own decision-making criteria.

SOCIETY

The TEL Group is making continued efforts for employee
education and training while encouraging and supporting
employees’ proactive approaches toward learning in line with its
basic human resource development policy, which consists of thefollowing three principles:
1. Self-motivation and a sense of responsibility are thebasic requirements for developing the talents of employees.
2. The workplace must support employee development.
3. The company must provide employees with opportunities
and incentives to learn and must build the necessary
platform or framework.

Organizational capability development program
Targeting group leaders in chargeof their respective workplaces,
this program intends to develop
management capabilities
required for the job and enhanceorganizational capabilities.
Organizational capability

Global communication program
Aiming to improve employees’ English communication skills, thisprogram offers classes by foreign teachers (six-month course of
22 classes).
Number of participants by program(Persons)
FY2013

Total participantsin past 3 years

Professional capability development program

529

2,762

Organizational capability development program

99

175

/FYUHFOFSBUJPOMFBEFSTEFWFMPQNFOUQSPHSBN

45

96

Global communication program

539

1,821

0WFSWJFXPG5&-6/*7&34*5:

Learn about
Tokyo Electron
Executives

Introduction

Becomeprofessional

Enhance organizational
capability

Undertake corporate
management

Learn about
the world

Utilize technical knowledge gained

Practice “Learning
Organization”

Develop a mind forcorporate top management

Learn language skills· MOT*· Workshops· Hatamura-juku· Project management

Leaders· Introduction for mid-career
recruits

Mid-career
employees

Learn technical knowledge· Technical lecture· Semiconductor· Core technologies· Common basic technologies

Introduction

New/junioremployees
Glossary· Introduction for new
employees· Organizational capability
development program

Learn management skills· New group leader
development program· Basics of management· Top management training· Next-generation top
management program· Pre-next-generation top
management program· GTEC score improvement
program· English learning program· Other languages

Understand different cultures

Learn basic knowledge· Basics of work
· Follow-up training· Baseline education· Basic technologies· Understanding different
cultures* MOT: Management of Technology
17

Safety and Health Initiatives
Our approach to safety and health
The TEL Group performs a range of business activities including
development, manufacturing, transportation, installation andmaintenance with the highest priority on the safety and health of
all personnel from top management to frontline staff and makes
proactive and continuous improvements to enhance safety andpromote good health.

Safety Policy
1. 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.

2. 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 throughintrinsically safe equipment designs and superior service capabilities.

3. Management and Employee Responsibility
All employees maintain an awareness of potential problems and of the needfor improvement concerning the maintenance and enhancement of safety andhealth at all workplaces, and management and employees act in accordancewith their respective responsibilities.

-FHBM$PNQMJBODF
We comply with safety and health laws and regulations and international rules, take
into consideration industry guidelines and strive to promote safety and health.

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

Initiatives for safety and healthAs part of our social responsibility activities, the TEL Group
places great importance on ensuring that our customers,
employees and everyone else involved in our business can workin a safe workplace environment, use our products safely andenjoy good health.
With a particular focus on securing the safety of its
employees, the TEL Group carries out safety education using

internal training facilities. This includes providing ongoingpractical training that aims to prevent accidents in clean rooms,
where our production equipment is primarily installed. In orderfor equipment to be connected to power and other utilities*1,
the ﬂoor of a clean room in which it is located must have an
open grating. This grating, however, can present a potential
tripping or falling hazard. Aiming to avoid these risks, the training
sessions simulate actual working conditions in order to instructparticipants on proper work
procedures and how to deal
with dangerous situations.
Similar safety education andpractical training sessions are
conducted in other countries
and regions around the world.
Practical training in a clean room

Preventing workplace accidents*2
before they occur
The number of workplace accidents in fiscal 2013 dropped fromthe fiscal 2012 level by about 20%. The number of accidents
that could have led to severe injury*3 was reduced to half in bothfiscal 2012 and fiscal 2013 from the fiscal 2011 level, thanks tovigorous activities aimed at eradicating serious accidents. Thesefigures are the results of our ongoing preventive measures,
which include checking the availability of safety facilities and thesafety environment at new factories and lines before delivering
our equipment, identifying potential hazards at work sites (a task
we call “KY” for the Japanese term “Kiken Yochi”), conducting
safety inspections and providing training based on accident casestudies. As part of its 50th anniversary celebrations in fiscal
2014, the TEL Group is reminding its employees of the Group’s“safety first” policy and working to further foster a safety culture
with the aim of totally eliminating workplace accidents throughthe collective efforts of the entire Group.

TOPICS
Training for raising hazard sensitivity in South Korea
For three days in February 2013, Tokyo Electron Korea Ltd. (TEK) conducted a
training program for identifying potential hazards known as “Kiken Yochi Training”(KYT) as well as “point and call” training. A total of 33 employees participated in the
programs. KYT is designed to help workers identify possible hazards in the workplace
to prevent accidents and has been statistically proven to be highly effective.
Although TEK employees seemed a little awkward when first trying out the
four-round hazard identification and point and call methods, they nevertheless took
their training seriously and worked hard. We expect that practicing these methods willlead to more effective accident prevention in the future.
Glossary

18

Point and call training

and other utilities: Electricity, special high-pressure gas, liquid chemicals, air, cooling water and pure water, and exhaust discharge, among others*12 Power
8PSLQMBDFBDDJEFOU 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.”*3 Accident that could lead to a severe injury: An accident that could result in a severe injury with ongoing effects

advanced safety refresher courses, which covered accidents
identified as fiscal 2013 priority issues: falling into a floor
opening, exposure to a liquid chemical, becoming caught
in a moving part of a machine, becoming trapped duringtransportation of heavy goods and gas leaks.

Occurrence rate of workplace accidents (FY2001 = 100)
100
100

50

23

0

2001

2009

43

45

2011

2012

36

19

2010

2013

(FY)

Occurrence rate of accidents that could lead to a severe injury(FY2011 = 100)

100

100

50

0

50

50

2012

2013

Advanced safety refresher course using web-based
education system

Checking safety with customers
2011

(FY)

Safety education

SOCIETY

Since July 2000, the TEL Group has been providing basic safety
education for all Group employees using a manual createdin-house. We provide more advanced safety education using amanual compiled by the Semiconductor Equipment Associationof Japan (SEAJ) for our technical employees who work primarily
in clean rooms.
In fiscal 2013, 9,517 employees took basic safety
refresher courses using a web-based education system.
The courses included a videotaped interview on safety with
the Tokyo Electron president and covered lessons learned
from the Great East Japan Earthquake as well as the subjectof radiation. Meanwhile, 7,580 employees participated in

When delivering TEL equipment to factories newly constructedby our customers, the TEL Group checks the new factory’s
facilities and equipment as well as its work safety procedures
before starting operation of the equipment. These checks areintended to identify any questions or problems related to work
procedures and promote the development of a safe working
environment prior to start-up.
With regard to facilities, we particularly check theavailability of systems that are crucial during emergencies, suchas gas detectors, water leakage detectors, emergency showers,
eye washers and (material) safety data sheets (MSDSs/SDSs).
Even after launching operation of our equipment following
delivery, we continue to conduct checks on an as-needed basis
in order to resolve questions and problems and ensure thatprocedures will be carried out safely.

TOPICS
Traffic safety education
The Safety Promotion Dept. of Tokyo Electron FE Ltd. (TFE)
provides a traffic safety education program called “What Will You
Do?” for its field engineers who work on-site at customers’ plants.
The education program include familiar topics such as identifying
possible hazards while driving; driving and avoiding accidents on
rainy days; possible hazards at intersections; possible hazards
on commuter roads, during twilight hours and at night; risks ofskidding; and risks present at parking lots. To impart the full
horror of traffic accidents and give clear examples of how to avoid
them, the program uses video of actual accidents and near misses
captured by drive recorders. At the end of the course, participants
take a quiz to check their level of understanding.
As well as TFE engineers, employees working at otherdepartments and plants have accessed the course website, with thenumber of participants last fiscal year totaling around 1,400.

Traffic safety education
program using a web-based
education system

19Quality Control Initiatives
Our approach to quality

Quality Promotion Framework

The TEL Group provides high-quality products and services.
We include the entire process from development throughmanufacturing, installation and maintenance. We also focus
on the quality of the entire customer experience. For us, thesatisfaction and trust of our customers is proof of our quality.

President & CEO
General Manager of
Production Division
Presidents ofGroup companies
Heads of GM committees

Quality Policy

Secretariat(Quality Promotion
Department)

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

2. 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 andfocusing on quality throughout all processes, we succeed in providing highquality products and services.

3. Quality and Trust
When we find a quality problem, manufacturing, sales and service departments
analyze the facts and complete a thorough investigation to determine thecause, resolving the problem as quickly as possible. Our customers can trustin our commitment to address identified quality problems.

4. 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.

5. Communication with Stakeholders
In addition to providing product quality information in a timely manner, weunderstand and align to the expectations of our stakeholders.

Quality assurance
When a quality problem occurs, we promptly take action
to minimize its impact on the customer. Sales and service
departments then report relevant information to the quality
assurance department responsible for the product that caused
the problem. Based on the use and quality record of the
product, the quality assurance department will then conduct
an analysis, investigate possible causes and inform production
and technology departments of the results while also sharing
the information with other divisions to prevent similar problems
from happening.

Technology Control
Committee

DesignStandardization
Working Group*

Parts
Standardization
Working Group*

Production GM
Committee

Material GM
Committee

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

<Technology Control Committee>
The Technology Control Committee is comprised of the DesignStandardization Working Group and the Parts Standardization
Working Group. At these working group meetings, factoryand division representatives with
Reducing
specialized knowledge share theinventory
latest information and identify
Reducing
Improving
costs
qualitycommon essential challenges in
Front
standardization as a foundation ofloading
manufacturing. The particular focus Shortening
Reducing
man-hours
lead timeof the committee is on improving
Reducing
quality in the development andchangesdesign phase (front loading).

Improving design quality
The TEL Group performs repeated design reviews, evaluations
and simulations at the design stage to develop equipment with ahigher level of perfection, and it makes continuous improvement
efforts by implementing PDCA cycles to increase the satisfaction
and gain the trust of customers. These measures have resulted
in improved quality and a drop in the number of changes needed
during the design phase.

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

Number of changes at the design stage (FY2007 = 100)
100

100
71.0

67.3

53.4%
Reduction
46.6

50

0
2007

20

2009

2011

2013

(FY)

Procurement Initiatives

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.

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

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

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

5. Information Management

Communication with suppliers
The TEL Group not only uses electronic data interchange(EDI)*1 for procuring parts and materials online, but also
operates its own website to promote efficient two-way
communication with suppliers.
We share our business overview and policies through thesemiannual Production Update Briefing held by the Group’s
manufacturing companies and the annual TEL Partners Day as
well as daily communication.

The TEL Group is formulating disaster mitigation programs incooperation with our suppliers. In order to promptly identify
damage and take steps for recovery following a disaster, wehave built a database of suppliers’ production sites. We also
conduct an annual survey and use the results to carry out
activities aimed at reducing risks together with suppliers.

SOCIETY

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

Business Continuity Plan (BCP)

Initiatives for procurement BCP

Post-disastermeasures

Investigate damage &evaluate impact(Procurement BER*3)
Support recovery efforts &take procurement measures(Procurement BDR*4)

Pre-disastermeasuresEstablish BCP systemwith suppliers

Build relationship with suppliers based on
mutual trust and respect

Speed & accuracy

$PNQMJBODFXJUI"QQMJDBCMF-BXTBOE4PDJBM/PSNT

Minimize risks

Procurement Policy

The TEL Group calls for the cooperation of its suppliers withregard to compliance with labor-related laws, including those on
child labor and forced labor. Specifically, this means we expect
our suppliers to respect fundamental human rights, protect
intellectual property rights, comply with import/export-related
laws and regulations, prohibit the involvement with antisocial
forces and take measures in regard to conflict minerals*2. With
regard to specific requests, such as requests to respond tochemical substance regulations, we hold briefing sessions for
suppliers so that we can work together with them.
Meanwhile, in order to reduce environmental impacts andlogistics costs, we cooperate with our suppliers to conduct
joint operations for highly efficient pick-up and delivery at two
locations, namely, Tohoku and Kyushu.

Procurement BCP scheme

The high-value manufacturing that the TEL Group strives foris based on the functions of all materials and components thatmake up the products and the pursuit of high quality.
We value communications with suppliers and seek to growmanufacturing on a global scale with our suppliers based on
ongoing trusting relationships.

Working together with suppliers

Procurement BCP

Our approach to procurement

TEL Partners Day
held in fiscal 2013

Glossary

data interchange (EDI): A framework to facilitate the electronic exchange of information related to commercial transactions among corporations in*1 aElectronic
unified standard format
minerals: Four minerals (tantalum, tin, gold and tungsten) mined or traded in the Democratic Republic of the Congo or its neighboring countries that
*2 Conflict
form a source of funds for armed groups, and give rise to violations of human rights or labor problems.
BER: Business Emergency Response. First response taken immediately after a disaster*43 BDR:* Business Disaster Recovery. Recovery effort that is made according to the results of the damage investigation
21

Environmental Management
Our approach to the environment
The TEL Group aims to solve environmental issues throughour leading-edge technology and services under slogan
of “Technology for Eco Life.” We strive to contribute to
the establishment of a sustainable society by reducing
the Group’s impact on the consumption of resources, on
biodiversity and on climate change by taking actions thatboth directly and indirectly contribute to the protection andconservation of the environment.

Environment Policy
1. Environmental Goals and Continuous Improvement
We continually enhance our knowledge of environmental issues to establish
voluntary goals that are reviewed by Executive Management and drive
continuous improvement and full regulatory compliance.

2. Promotion of Environmental Technology
We aim to invest in the development of leading-edge, high-value products andservices that directly contribute to a sustainable society.

3. Environmental Contribution with Products
We develop eco-friendly products through our leading-edge technology. The
Group cooperates with customers and suppliers to strive for the prevention andimprovement of a wide range of environmental concerns.

Environmental activity promotion framework

Global Environment Meeting

Product Environment
Value Meeting

Product Environment
Compliance Meeting

Operation Environment
Value Meeting

Reducing the energy
consumption of products

Compliance with, and response
to, laws and regulations onenvironmental standards for
products in each country

Reducing environmental
impact of businessactivities; ensuring
compliance

Environmental education
The TEL Group provides Group employees with environmental
education and training aimed at different job grades. For
new employees such training programs are mandatory. In
fiscal 2013, the TEL Group provided employees in Japan with
web-based environmental education using an e-learning system.
In fiscal 2014, the TEL Group will provide the program to Group
employees outside Japan to raise environmental awarenessacross the entire Group.

4. 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.

5. Collaboration and Cooperation with Stakeholders and Society
We actively promote collaboration and cooperation with all our stakeholders toachieve mutual understanding and conformance to expectations.

Web-based environmental education

Environmental activity promotion
framework
To promote Group-wide environmental activities, the TELGroup has established a framework consisting of the ProductEnvironment Value Meeting, Product Environment Compliance
Meeting and Operation Environment Value Meeting. Supervisedby the Global Environment Meeting, these three meetings
are comprised of members appointed by top managementfrom the Tokyo Electron Head Office and Group companies.
Collectively, they carry out activities for achieving the TELGroup environmental goals and keep tabs on their progress. To
ensure continuous improvement, the committees are subject tomanagement reviews.
Since 1997, the TEL Group has been introducing
environmental management systems based on ISO14001
standards, primarily at manufacturing subsidiaries, andobtaining ISO14001 certification.

Checking environmental activities
The TEL Group’s manufacturing subsidiaries keep a close eyeon laws and regulations in order to ensure compliance withenvironmental laws, emission standards and other legal andregulatory frameworks. Some of them have also set their own
voluntary standards. The TEL Group has completed its checks
on the frameworks for environmental initiatives as well as the
progress of related activities with respect to companies acquiredby the Group in fiscal 2013.
In ﬁscal 2013, the Group was not involved in any environmentrelated incidents or accidents, nor committed any violations ofenvironmental law, nor was subject to any related legal proceedings.

List of ISO14001 certified TEL Group plants and offices:
http://www.tel.com/environment/enviro/index.htm

Checking environmental frameworks at TEL FSI, Inc.
22

Biodiversity Initiatives
Our approach to biodiversity
The environment plays host to an enormous amount of
biodiversity. This biodiversity supports a number of ecosystemservices, without which the TEL Group would be unable tocontinue its business activities. Our activities, however, have a
non-negligible impact on biodiversity. Based on this recognition,
the Group has put in place a framework to promote initiatives forbiodiversity conservation.

representative director of Conservation International Japan, andAssociate Professor Rei Kosaka of Kanazawa University to get
feedback on the guidelines.
Based on the relationship maps and activity guidelines, weare committed to launching biodiversity initiatives.

Activity Guidelines
We aim to become a company that contributes to biodiversity
through business activities.
We strive to understand the life cycle impact of our products andreduce such impact.

Fiscal 2013 activities
Since October 2012, the TEL Group has held workshops
to deepen employees’ understanding of biodiversity. The
first workshop organized an ecosystem tour around the
Fuchu Office led by an expert guide. This tour provided an
opportunity for participants to get a close-up look at their
immediate natural environment and learn about biodiversity
conservation. Two TEL Group offices mapped the relationshipbetween business activities and biodiversity based on
product life cycle assessments and identified the relationshipbetween TEL products and biodiversity. Having gained aclearer understanding of both the impact and dependence of
products on biodiversity over the course of the product life
cycle, the two offices formulated the Group’s approach to theissue and drafted activity guidelines. At the end of February
2013, representatives of the Group met with Mr. Yasushi Hibi,

We shall familiarize ourselves with the issues related to biodiversity,acquire relevant knowledge and make conservation efforts.

Workshop

Ecosystem tour

Map of biodiversity relationship*

Renewable energy

Mineral resources

Energy resources

Energy resources

Energy resources

Renewable resources

Renewable resources

Packaging/wood

Energy resources

Renewable resources
Energy resources

Raw materials procurement

Emissions
into water

OutputEmissions
to airProduction

Emissions
into waterTransportation

Emissions
to airEmissions
to airResources

Use

Disposal/recycling

Emissions
into water

Emissions
to airEmissions into soil

Impact of
input/output

Pollution, Climate change
Degradation of habitat ofliving organisms

Climate change
Increase of
non-native species

Pollution
Climate change

Input

OutputEnergy resources

Building materials

Emissions
into water

Emissions
to airEmissions into soil
Pollution, Climate change
Degradation of habitat ofliving organisms

Consumer use of semiconductors

Plants and Offices

Renewable resources

Pollution
Climate change

Semiconductor production using products

Input

ENVIRONMENT

Raw materials

Product life cycle

Land use

Emissions
into water

Emissions
to airWaste from cafeteria

Impact of input/output

OutputImpact of input/output

Pollution
Climate change
Degradation of habitat of living organisms
Increase of non-native species

Disposal
after use

Development ofenergy-saving,
resource-saving society

Semiconductor* Created based on the Business & Biodiversity Interrelationship Map by the Japan Business Initiative for Biodiversity (JBIB)
Renewable energy : Hydro power and solar photovoltaic power generation

Energy resources : Crude oil, natural gas

Renewable resource : water

Resources : quartz, etc.

23

Environmental Initiatives in Products and Logistics
Reducing Environmental
Impact of Product Use
Our approach to environmental initiatives
In its Environment Policy, the TEL Group clearly expresses its
belief that promoting environmentally friendly product design isa crucial part of its corporate activity. The Group is particularly
working on reducing the energy consumption of its products asa priority challenge.

Energy-saving measures
The TEL Group is making energy-saving efforts to achieve thegoal of 50% reduction in energy consumption from the fiscal
2008 level by fiscal 2015 with regard to major models of eachbusiness unit. In fiscal 2013, we achieved the interim target of
reducing energy consumption by 30% regarding major modelsof each business unit.
We are promoting the reduction of product energy
consumption through four approaches: (1) reducing the energy
used by the product itself; (2) reducing the energy used byperipheral devices; (3) ensuring systematic and efficient
operation of products; and (4) ensuring energy-saving operationof customers’ factories. As the importance of (3) and (4) is likely
to increase in the future, we are planning to focus more on themonitoring and control of energy use.

Energy monitoring
To facilitate the effort to reduce the energy consumption of
our equipment when in use, we are developing a monitoring
system for the centralized management of energy consumption.
Known as the “Eco Monitor,” the system visualizes the amountof electricity and other utilities supplied to the equipment
during operation. It is expected that the data will be used forcomparison and analysis purposes and will lead to the reductionof waste in energy consumption and the improvement ofoperational efficiency.

Electricity
Cooling water
Pure water

Dry air
NitrogenExhaustEco Monitor

Customer’s factory
Energy-saving operation of the factory(planned operation and proper management)

System
Efﬁcient management

Equipment
Reduced energy usage of the equipment itself

Reduced energy usage of peripheral devices
Pump

Water chiller

Peripheral devices

Glossary24

ScrubberMonitors electricity, exhaust, water (cooling water and pure water),dry air and nitrogen as comprehensive energy during the actual
operation of the equipment in accordance with SEMI S23*.

S23: Guidelines for energy conservation for semiconductor production equipment issued by Semiconductor Equipment and Materials International (SEMI),* SEMIan international industry organization for semiconductor/FPD production equipment and material manufacturers

Equipment that achieved a 30% reduction in energy consumption (from FY2008 level; per wafer)
Electricity

Plasma Etch System
TactrasTM VigusTM

Electricity

Key initiative:
Saving energy consumption ofchiller, pump and heater

Single Wafer Plasma Treatment System
Triase+TM SPAi
Key initiative:
Eliminating temperature control
unit by using plant-sourced
cooling water directly

Energy reduction: 31%

Energy reduction: 50%

Electricity

Pure
water

NitrogenElectricity

Single Wafer CVD System
Triase+TM EX-IITM TiN

Key initiative:
Improving productivity with
two-wafer processing

Key initiative:
Miniaturization and energy-saving
operation of heater and pump

Energy reduction: 50%

Energy reduction: 50%

Auto Wet Station
EXPEDIUSTM-i

Dry air

Single Wafer Cleaning System
CELLESTATM-i

Key initiative:
Reducing pure water
consumption in standby mode

Key initiative:
Reducing dry air consumption by
improving the drying system

Energy reduction: 36%

Energy reduction: 50%

Wafer Prober
Precio nanoTM

NitrogenScrubber System
NS300+Key initiative:
Reducing the amount of dry
air supply with dew point
monitoring

Key initiative:
Reducing the amount of exhaustby changing N 2 purging to dry air
and improving duct

Energy reduction: 50%

Energy reduction: 50%

Thermal Processing System
TELINDY PLUSTM
Key initiative:
Ensuring the use of proper amountof nitrogen
Energy reduction: 30%

ExhaustENVIRONMENT

Dry air

Gas Chemical Etch System
Certas WINGTM

Coater/Developers
CLEAN TRACK TM LITHIUS ProTM V-i
Key initiative:
Reducing the amount of exhaustof rotating cup modules andsaving energy in temperature/humidity control
Energy reduction: 50%

25

Measures against Regulated
Chemical Substances
Our approach to regulated chemical substances
Reducing regulated chemical substances contained in products
is essential when manufacturing environmentally friendly
products. At the TEL Group, we set our own standards andcontinue to make efforts to reduce the use of regulated
chemical substances in our equipment and quickly supply
products that are in compliance with the laws and regulations ofcountries in which our customers operate.

Reducing the use of regulated
chemical substances in equipment
Although TEL Group products are exempt from the EU’s RoHS*1
Directive, the TEL Group is committed to voluntarily reducing
the use of the six RoHS substances*2. We designate equipmentthat contains 98.5% or more parts that meet the EU’s RoHS
Directive as “equipment with fewer regulated chemical
substances,” and major models of each of our business units
meet this standard. We will make continued efforts to increase
the number of compliant models.
Additionally, to effectively become compliant with the EU’s
RoHS Directive, REACH*3, Chinese RoHS and other regulations,
we adopted JAMP AIS*4 and JAMP management guidelines
for information on chemicals contained in our products. Prior
to the adoption of these regulations, in fiscal 2013 we held
briefing sessions for our suppliers. We will introduce the
JAMP-IT system, which is an IT system promoted by JAMP
for distributing information on chemical substances containedin products, and efficiently conduct surveys by requesting
cooperation from our suppliers.

Complying with the laws and regulations in countries
and regions where our customers operate
We provide equipment in full compliance with China’s
version of RoHS, which requires that necessary
information be provided to customers.
In response to the EU’s REACH regulation, we provide
information on the content of any substance of very highconcern (SVHC) and safety information when a SVHC
amounting to more than 0.1% is present in any of our products.
In response to each country’s regulations based on
the GHS*5 formulated by the United Nations, the TELGroup makes available safety information on chemical
substances through (material) safety data sheets, or(M) SDS, as well as labels affixed to containers carrying
chemical substances.
With regard to battery regulations*6 enacted by the EU
and Taiwan, we check whether applicable batteries areused inside our products and take necessary measures.

Future plans
We will further increase the percentage of equipment
containing reduced amounts of regulated chemical substances.
We will effectively use JAMP and other frameworks
and will broaden our collaboration with customers
and suppliers to promote more rational and accurate
measures for the management of regulated chemical
substances. We will also continuously improve ourchemical substance management system, which we havebuilt internally based on JAMP management guidelines
for information on chemicals contained in products, tofurther strengthen our control over chemical substances.
We will further tighten the management of regulated
chemical substances at a global level to achieve an evenhigher level of environmental compliance for our products.

Equipment with fewer regulated chemical substances as of FY2013
Thermal Processing System
Single Wafer CVD System
Wafer Prober
Etch System
Coater/Developers

Surface Preparation System
Wafer Bonding/Debonding System

Glossary

TELINDY PLUS™
Trias™
Precio™
Telius™SP
Tactras™
CLEAN TRACK™ LITHIUS Pro™
CLEAN TRACK™ LITHIUS™
CELLESTA™+
EXPEDIUS™
NS300
Synapse™ Series

Introductory presentation on management
guidelines for information on chemicals
contained in products

Presentation material

Restriction of the Use of Certain Hazardous Substances in Electrical and Electronic Equipment*12 RoHS:
Six RoHS substances: Lead, mercury, cadmium, hexavalent chromium, polybrominated biphenals (PBBs) and polybrominated diphenylethers (PBDEs)*3 REACH: Registration, Evaluation, Authorisation and Restriction of Chemicals. A regulation pertaining to the registration, evaluation, authorization and restriction* of chemicals. 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.
AIS: Article information sheet (AIS) promoted by the Joint Article Management Promotion-consortium (JAMP). This sheet is used to deliver basic*4 JAMP
information on regulated chemical substances.
GHS: Globally Harmonized System of Classification and Labelling of Chemicals. A system agreed upon by the United Nations that is intended to provide unified*5 standards
across various countries for the classification of hazard level, labeling and the content of (M) SDS
regulations: Regulations enforced in each country to facilitate the collection and recycling of batteries, including the mandatory indication of the*6 Battery
recycling symbol on batteries

26

Reducing the Environmental
Impact of Logistics
Our approach to reducing theenvironmental impact of logistics
Regulations concerning logistics have been tightened witha view to helping curb global climate change. At the sametime, companies are facing growing demands for measures
to reduce environmental impact of their logistics. For its part,the TEL Group will continue striving to reduce environmental
impact caused by the transport of its products through suchmeans as promoting modal shift* 7 for domestic and overseas
transport and adopting packaging methods with a smaller
environmental footprint.

2012 level but improved by about 8 points from fiscal 2008.
To further facilitate a modal shift by switching to marine andother transportation methods that have a lower impact on theenvironment, we are working to reduce production lead time.
We use wooden frames and corrugated cardboard as
packaging materials when shipping products. To reduce theamount of resources used for packaging, we also use reusable
corrugated cardboard boxes as packaging materials for someshipments inside Japan. Furthermore, casters and special tools
used for moving products on-site at the customers’ premises
are collected and brought back to Group plants for reuse as partof our efforts to save resources.
CO 2 emissions from logistics and the proportion of marine transportation(Thousand tons)

(%)

200

Reducing the environmental impactof logistics
We calculate and monitor the CO 2 emissions of domestic
and international logistics for our products. In fiscal 2013,
we reduced CO 2 emissions by about 9% from fiscal 2012,
to about 60,000 tons. The share of marine transportation
used for exports was 25.9%, which declined from the fiscal

150

60

53.6

145

50

5

36.6

37.8

40

32.0
100
50

140

25.9

30

3

60

20

66

63

58

10

2011

2012

70
17.4

0
2008

4

33

31

3
30
2009

2
29
2010

66

2

2013 (FY)0International logistics
Logistics within Japan
Proportion of marine transportation in international logistics

TOPICS
Revision of Guideline for Green Procurement

ENVIRONMENTOn January 15, 2001, the TEL Group issued the Guideline for Green Procurement to operate its
business based on its Environment Policy, and has since promoted green procurement that takes into
account efforts to reduce the environmental impact of its suppliers’ business activities.
In light of the more stringent environmental laws and regulations being enacted around the globe
over the decade since the issuance of the Guideline for Green Procurement, the TEL Group revised theguideline in November 2012. The revised guideline consists of the following:
1. Improving the environmental management system
Improving the sustainable corporate environmental management system to conserve the global
environment by referring to the ISO14001 environmental management system
2. Monitoring, reducing, and disclosing the environmental impact of business activities
3. Considering the environmental impact of productst1 SPWJEJOHMBCFMTSFRVJSFEGPSEFMJWFSZPGHBTBOEDIFNJDBMQSPEVDUT BTXFMMBTTBGFUZJOGPSNBUJPO
t. FBTVSFTGPSSFHVMBUFEDIFNJDBMTVCTUBODFTJODPNQPOFOUT QBSUT NBUFSJBMT BOEDIFNJDBMTVTFEfor maintenancet. FBTVSFTSFRVJSFEGPSDIFNJDBMTVCTUBODFTDPOUBJOFEJOCVJMUJODPNQPOFOUTBOEQBSUTt*OGPSNBUJPOPOCBUUFSJFTGPSCVJMUJODPNQPOFOUTBOEQBSUTt3 FEVDJOHFOFSHZDPOTVNQUJPOBOEJNQSPWJOHFOFSHZFGGJDJFODZt3 FTPVSDFTBWJOH SFVTFBOESFDZDMJOHt3 FVTJOHQBDLBHJOHNBUFSJBMT VTFPGFOWJSPONFOUBMMZGSJFOEMZNBUFSJBMT FOTVSJOHDPNQMJBODFXJUI
laws and regulationst1 SPWJEJOHFOWJSPONFOUBMJOGPSNBUJPOGlossary

Guideline for Green Procurement

shift: A shift in the mode of transportation. Specifically, switching from conventional freight transportation by truck or aircraft to means such as marine*7 Modaland rail, which have a lower impact on the environment
27

Plant and Ofﬁce Initiatives for the Environment
Preventing Global Climate Change

Figure 2: Electricity consumption(Million kWh)Our approach to climate change
At the TEL Group, each plant and office makes efforts toachieve its own goal of energy consumption reduction set inunits (e.g., floor area) that it has chosen to measure and reports
energy consumption depending on the form of its business. The
Group is also proactively adopting photovoltaic power generation
systems to reduce CO 2 emissions.

Efforts to reduce energy consumption

270.1

300

249.6

9.9

12.5

231.8
16.0

262.1

250.6

251.4

20.5

27.8

40.5

223.6

221.6

2012

2013

200

260.2

237.1

100

215.8

230.1

0
2008

2009

Japan

Overseas

2010

2011

(FY)

Figure 3: Breakdown of CO 2 emissions from energy
consumption 2 by source*

In accordance with the Act on the Rational Use of Energy, theGroup plants and offices have set the goal of reducing energy
consumption by at least 1% year on year. In fiscal 2013, fiveout of six TEL plants in Japan achieved this goal. Energy
consumption with the unit of kiloliter of crude oil equivalent*1
decreased by 6.4% from the previous year (Figure 1).

1%City gas

3%

LPG

Kerosene1%

Heavy oil, light oil, etc. 1%

FY2013

Electricity 94%

140,712tons

Figure 1: Energy consumption in FY2013(Baseline year = FY2012)
EnergyEnergy consumption 1FSVOJUDPOTVNQUJPO
consumption (kl) over baseline year
over baseline year
Tohoku Plant
3,400
102%
89%
Technology Center Sendai
2,754
103%
104%
Yamanashi Plant (Hosaka)
11,64589%
89%
Yamanashi Plant (Fujii)
9,511
95%
95%
Koshi Plant
15,90596%
96%
Ozu Plant
3,478
82%
82%
Total
46,693
93.6%
Plant

Power consumption of the entire TEL Group increased
by about 4% from fiscal 2012 (Figure 2). CO 2 emissions
associated with energy use increased by about 38% fromfiscal 2012, primarily due to worsening power emission factors
in Japan (Figures 3 and 4). If power emission factors are
assumed to be at the same levels as those in fiscal 2012,
CO 2 emissions at plants that have set their targets decreased
similarly as with energy consumption (Figure 5).

Figure 4: CO 2 emissions from energy consumption(t)

140,712150,000
120,000

113,169 116,078
8,336

7,335

23,316

90,616
8,945

12,046

15,06381,671

84,847

87,124

2010

2011

2012

90,00060,000117,396

107,742

105,834

30,000
0
2008
Japan

2009

In fiscal 2013, the Koshi Plant introduced photovoltaic power
generation systems. The TEL Group generated a combined totalof 3,858 MWh using PV cells installed at the Koshi Plant as wellas the Yamanashi and Miyagi Plants, which had already adopted
PV systems, in fiscal 2013 (Figure 6).

Glossary

2013

(FY)

Overseas

CO 2 emissions in ﬁscal 2012 totaled 87,124 tons minus a 50,000 ton reduction
brought about through the use of a domestic clean development mechanism (CDM)*3.

Figure 5: CO 2 emissions inareas that have set goals(Thousand tons)

Introducing PV power generation systems

96,893 102,187

100

Figure 6: Electricity generated with
17QPXFSHFOFSBUJPOTZTUFNT(Million kWh)

74

3.9

4.0

93
69

2.2
50

2.0

0

0
2013
2013* (FY)2012
*When power factors are the same as those in ﬁscal 201220122013 (FY)of crude oil equivalent: Volume of electricity, heavy oil, gas and other types of energy used × Per-unit calorific value of each energy type ×*1 Kiloliter
Conversion rate for crude oil equivalentemissions from energy consumption: We used adjusted emission factors for individual electric power providers for the emission factor for electricity*2 CO
consumption in Japan in fiscal 2013. For the emission factor for electricity consumption overseas, we used estimated factors calculated by the Federation of2

Electric Power Companies of Japan based on values published by the International Energy Agency (IEA).
Domestic clean development mechanism (CDM): The approved mechanism for CO emissions reduction under Japan’s Domestic CDM System (a Japanese*3 government
scheme that allows small and medium-sized businesses to receive funding, technology, and technical support from large businesses in order to2work collaboratively to reduce CO 2 emissions and trade the reduced amount as emission credits)28

Conserving Resources

Efforts to reduce the use of paper

Our approach to resource conservation
The TEL Group is working to minimize the use of limited natural
resources by reducing the volume of water and paper used.

Our employees are encouraged to use duplex copying, to copy
at a reduced size, and to digitize information and internal
circulars. As a result of these efforts, the TEL Group’s use ofcopier paper in Japan in fiscal 2013 decreased by about 25%,or more than 8 million sheets, compared with fiscal 2012.

Efforts to reduce water consumption
The TEL Group has set a new environmental goal of keeping
water consumption at the same or at a lower level than the basic
unit set by each plant in fiscal 2012. In fiscal 2013, five out of
the six goals set regarding water (tap water, industrial water andgroundwater) used at six TEL plants in Japan were achieved.
The Hosaka Plant, for example, streamlined facilities forpure water, which accounts for a majority of water used, andconsequently reduced overall water consumption by about 5%
from fiscal 2012 levels. At the same time, the Ozu Plant carriedout activities to reduce water consumption at its cafeteria,
including ensuring intermittent operation of faucets and using
rinse-free rice, which resulted in a 67% reduction in water
consumption compared to the level before implementing theseries of measures. While sharing these practices throughout thegroup, each plant is making efforts to reduce water consumption.

8BUFSDPOTVNQUJPOJO':

(Baseline year = FY2012)

8BUFSUZQF
8BUFS
8BUFSDPOTVNQUJPO 1FSVOJUDPOTVNQUJPO
used consumption (m3) over baseline year over baseline year

Plant
Tohoku Plant

56,965

121.5%

88.8%

50,246116.6%

110.3%

Technology Center Sendai
7,501

73.0%

69.1%

Yamanashi Plant (Hosaka)

243,377

95.2%

95.2%

Yamanashi Plant (Fujii)

60,029

93.3%

93.3%

527,899

89.4%

89.2%

946,017

93.6%

Koshi Plant
Ozu Plant
Total
Tap waterIndustrial water

Groundwater

8BUFSDPOTVNQUJPO(Thousand m 3)

1,200

1,180
48

1,139
65

2

1

967
49

Streamlining pure water facilities at the Hosaka Plant

599

800

104

315

300

531

506

466

296

301

312

2011

2012

2013 (FY)Tap waterIndustrial water

64
1

199

504

No.1
RO*5

No.2
RO

400

Pure water

531

Discharged
waterAnion tower*4

Discharged
water

Pretreatment withmembrane ﬁlter

0

2008

After improvement

498

2009

Overseas use

Cation tower*6+ Anion tower

We reduced the amount of water discharged by reviewing
pretreatment and interim treatment methods and integrating
two RO treatment units into one. We were also able to reduce
the amount of liquid chemicals used for treatment and theelectricity used for pumps of related facilities.

RO

2010
Groundwater

Pure water

Discharged
water

Activatedcarbon ﬁlter

413

ENVIRONMENT

Tap water

1,182

70

575

Before improvement
Tap water

1,192

1,090

TOPICS
Score of semiconductor production equipment manufacturers

Achieving a 79 CDP*7 2012 disclosure score
Tokyo Electron scored 79 for its CDP disclosure score, which
evaluates strategy on climate change, initiatives to reducegreenhouse gas emissions and status of information disclosure.
We will continue to make proactive efforts for environment
conservation and information disclosure.

Glossary(Disclosure score)

100

79

86
70

61

55

0
Tokyo ElectronJapanese sector
peer company A

Japanese sector
peer company B

Japanese sector
peer company C

Overseas sector
peer company

tower: A tower where anion treatment is conducted*45 Anion
RO: Reverse osmosis operation*6 Cation tower: A tower where cation treatment is conducted*7 CDP: Carbon Disclosure Project. A project that works with institutional investors to ask leading companies by market value in key countries to disclose their* strategies for combating climate change and greenhouse gas emissions. Since its start in 2000, the response rate from corporations has been increasing
year by year.
29Reducing Waste
Our approach to waste reduction
In its efforts to minimize waste, the TEL Group recycles whatever
waste is generated to the greatest extent possible, and disposesof non-recyclable waste in a proper and responsible manner.
To be more specific, we separate recyclable waste from
non-recyclables, use new manufacturing processes that do not
involve waste generation, hire only waste disposal companies
inspected and authorized by our company, periodically check
final waste disposal practices, and also focus on educational
activities related to the sorting of waste and other topics. Somebusiness sites have begun using electronic manifests*1 toensure proper management of waste.

Breakdown of waste (Japan)
Others12%

Wood waste/packaging materials

6%

Plastics

8%

Paper

8%

Metal/product waste

14%

FY2013Liquid waste 52%

7,960
tons

Recycling rate and generation of incinerated and landfill waste (Japan)
(%)

(t)

500

97.0

97.3

97.3

98.1

97.4

97.3

100

Target: Maintain recycling rate of 97% or more

400

366
331

Volume of waste generated andrecycling rates
The volume of waste generated at TEL plants and offices inJapan decreased by 38% from fiscal 2012, as the liquid waste
treatment building at Koshi Plant began its operations, resulting
in a decrease in the volume of liquid waste to be treated by anoutside contractor. With a recycling rate*2 of 97.3% in fiscal
2013, the TEL Group achieved its goal of maintaining a recycling
rate of 97% or more. Also in fiscal 2013, the Group monitored
the volume of waste generated at its plants and offices outside
Japan, and confirmed a recycling rate of about 20%. We will
monitor the volume of waste generated at overseas locations ina more accurate manner for even higher goal setting.

Zero waste
The TEL Group defines plants where less than 2% of waste
generated is incinerated or put into landfill as “zero waste
plants.” In fiscal 2013, we achieved zero waste at six plants inJapan as a result of our efforts to reduce waste and recycle.

288

300

276

245

215

200
100
0

2008

2009

Incineration and landﬁll

2010

2011

2012

2013 (FY)0

Recycling rate3 FDZDMJOHSBUFGPSJOEVTUSJBMXBTUFHFOFSBUFEBU5&-(SPVQ
plants in Japan
Recycling rate
Plant
FY2012FY2013

Tohoku Plant

99.2%

100%

Taiwa Plant

100%

100%

Yamanashi Plant (Hosaka)

100%

100%

Yamanashi Plant (Fujii)

100%

100%

Koshi Plant

100%

100%

Ozu Plant

100%

100%

TOPICS
Overseas initiative
Tokyo Electron Taiwan Limited (TET) has worked on waste sorting,i.e., separating recyclable waste from general waste. By installing
trash bins labeled by the type of waste at the entrance of the officeand the clean room to ensure proper waste sorting, TET achieved arecycling rate of 63% in fiscal 2013. TET will continue to work on
reducing and sorting waste to improve their recycling rate.

Glossary

manifest: A system in which the flow of industrial waste is managed via a communication network linking information processing centers, the*1 Electronic
companies generating the waste, waste collection and transportation companies, and waste disposal companies. It replaces the conventional paper-based
control manifest.

30

Trash bins labeled for waste separation installedat the entrance of the kitchen and clean room

*2 Recycling rate: Recycled amount ÷ Amount of waste generated × 100

after use either through specialist
waste disposal contractors or using our
in-house processing equipment. We willcontinue to properly manage risk relating
to these chemical substances.
Illustrating one example of proper
Shelves used to store
chemical substances at TEK
chemical substance management,
Tokyo Electron Korea Limited (TEK) specifies where to store thechemical substances it handles, keeps (M)SDS information at
the storage site, and places GHS-required labels on containers
used for carrying chemical substances.

Management of Chemical Substances
Our approach to the management ofchemical substances
The TEL Group uses chemical substances mainly in thedevelopment and manufacturing phases of products. In thedevelopment phase, whenever we introduce a new chemical
substance or alter the method of using a chemical substance,
we make sure to check for environmental, health and safety
risks and take the necessary measures before the new
substance or method is adopted.

7PMVNFPG1353$MBTT*%FTJHOBUFE$IFNJDBM4VCTUBODFTIBOEMFE +BQBO

Compliance with the PRTR* law
3(kg)

13,70914,361

12,450

169

1,617

2,108

5,071

15,000In accordance with the Act on Confirmation, etc. of Release
Amounts of Specific Chemical Substances in the Environment
and Promotion of Improvements to the Management Thereof(“Japanese PRTR law”), we ensure that chemical substances
regulated under the law are managed rigorously, and thatthe amounts of regulated substances used, discharged andtransferred are consistently monitored. The TEL Group useshydrogen fluoride, one of the regulated substances, in large
quantities particularly during the cleaning of test wafers. We
make sure to properly dispose of the hazardous substances

10,000

9,693

1,359
3,962

1,607

236

1,459
1,200

6,285

5,000

0

847
1,225

5,021

5,427

3,977

2008

2009

2010

Hydrogen ﬂuoride and its water-soluble salts
Ethylene glycol
Xylene11,732
2,031

4,541

3,787

8,469

8,203

5,914

2011

2012

2013 (FY)

Methylnaphthalene
Others.BUFSJBMCBMBODFPG1353SFHVMBUFETVCTUBODFT
Volume of substances handled

Waste

5,083 kg/year

Transferred to sewage

180 kg/year

On-site landfill

0 kg/year
2,335 kg/year

Recycled

195 kg/year

Volume of substances consumed

Released into the air

19 kg/year

Released into water

0 kg/year

ENVIRONMENT

Removed11,732 kg/year

3,920 kg/year

Input and output (FY2013)
Change fromprevious year

Input
Energy (crude oil equivalent)(Breakdown) Electricity

69,684 kl+5.0%

262.15 million kWh+4.3%

Gas (crude oil equivalent)

2,668 kl +36.0%

Fuel (crude oil equivalent)

1,216 kl

-20.1%

1.182 million m

3

-0.9%

11.7 tons-18.2%

99 tons-25.0%

Water
Chemical substances(Class I Designated Chemical Substances under the PRTR system)

Paper (copier paper)
Material/packaging material
Glossary

Change fromprevious year

OutputCO2 emissions from energy consumption

TEL
Group

140,712 tons +37.7%

Waste

7,960 tons

-38.2%(Breakdown) Recycled amount

7,745 tons

-38.3%

215 tons-35.0%

9,634 tons

-36.8%

Amount of incinerated/landfill waste

Total product shipment

Pollutant Release and Transfer Register. A system under which the use of chemical substances that may be hazardous to human health and the*3 PRTR:ecosystem, their release into the environment, and their transfer (contained in waste) off the original business premises are identified, tabulated, and disclosed31

In Harmony with the Local Community
The TEL Group is building relationships for mutual development through various forms of social involvement, including initiatives forthe development of young people as future leaders, community-based citizenship activities in response to local needs, and support forrecovery and revitalization efforts in the Tohoku region that was affected by the Great East Japan Earthquake.

Supporting science education
Science class
To provide elementary school children with an opportunity to know the fun ofscience, we held an event titled “Fun Topics of Science” consisting of a scienceshow and classes with demonstrative experiments. A total of 1,800 children andtheir families visited the science show featuring various experiments, such as
experiencing the power of air by demonstrating an air cannon. In classes held on
the curious characteristics of low temperatures and other science-related subjects,
elementary school children watched experiments enthusiastically.
The TEL Group will continue to hold this popular annual event.
Other activitiest0 SHBOJ[FE4DJFODF4PDDFS4DIPPM(Tokyo Electron)tS ponsored Youngsters’ Science Festival in Kumamoto 2012 (Tokyo Electron Kyushu)tA ccepted participants in High Tech University in Kumamoto (Tokyo Electron Kyushu)
Science show

Revitalizing local communities
Supporting the Kumamoto Castle Marathon

Kumamoto Castle Marathon

We supported the second Kumamoto Castle Marathon as a gold sponsor two
years in a row. Over 10,000 runners wearing colorful gear ran through the centerof Kumamoto City. More than 120 TEL Group employees participated in themarathon, with well over 80 employees running with all their might toward the goalin the first marathon. TEL employees also participated in the event as volunteer
supporters, performing baggage checks, serving meals, and cheering the runners
on along the road.
Other activitiest4 QPOTPSFEBOBUJPOBMXPNFOTDPSQPSBUFSFMBZNBSBUIPOPSi2VFFOT&LJEFOw
in Miyagi as a special sponsor (Tokyo Electron/Tokyo Electron Miyagi)t4 QPOTPSFE5PLZP&MFDUSPO/JSBTBLJ#VOLB)BMM/BNJOH3JHIU.FNPSJBM
Concert (Tokyo Electron Yamanashi)t4 VQQPSUFE&TBTIJ+JOLV'FTUJWBM(Tokyo Electron Tohoku)
National women’s corporate relay marathon (Queen’s Ekiden in Miyagi)

32

Environmental conservation
Planting trees in Tokyo Electron Forest
As part of our effort to develop forests and conserve the environment, we plant
trees in Tokyo Electron Forest. Under this project, we intend to plant 3,000 konara
oak trees (Quercus serrate) in five years in a 3.1-hectare area at the foot of the
Yatsugatake Mountains, which is one of the greatest sights to behold in Yamanashi
Prefecture. During the third tree planting event, about 200 employees and family
members planted 800 konara seedlings. The participants worked hard, some evenon steep slopes, with mud and dirt on their clothes. Tree planting provides wild
animals with their habitat and food, and also creates fertile soil.
We will continue endeavoring to conserve the global environment with gratitudeand consideration for nature.

Other activitiestParticipated in the Second Corporate Afforestation Program (Tokyo Electron Tohoku)t0 GGJDFHSFFOJOHDBNQBJHO(Tokyo Electron (Shanghai))t& DPDPNNVUFSCVTEFNPOTUSBUJPOFYQFSJNFOU(Tokyo Electron Kyushu)

Planting trees in Tokyo Electron Forest

Corporate philanthropy
Sponsoring Grand Gala, Great East Japan
Earthquake memorial charity ballet show
In March 2013, we sponsored the Grand Gala Concert, Great East Japan Earthquake
memorial charity ballet show at Tokyo Electron Hall Miyagi in Sendai City, Miyagi
Prefecture, and Bunkamura Orchard Hall in Tokyo. In organizing this ballet show,
Shinobu Takita, a principal dancer in the Kiev Ballet, the National Ballet of Ukraine,
called for participation of dancers around the world who are in harmony with the
purpose of the concert. The price of one concert ticket included a 1,000 yen donation toan earthquake recovery fund, and we were able to donate a total of 3,195,000 yen from
1,388 tickets sold for the Sendai show and 1,807 tickets for the Tokyo show.
COMMUNITY

Other activities

Grand Gala postert1SPWJEFEEPOBUJPOTUP.JZBHJBOE*XBUF1SFGFDUVSFTUPTVQQPSUUIFJSSFDPWFSZ
efforts from the earthquake (Tokyo Electron)t1BSUJDJQBUFEJO$IJMESFO*O/FFE (Tokyo Electron Europe)t5"#-&'03580QSPHSBN(Tokyo Electron)t% POBUFEQPMJPWBDDJOF(TEL Group)33

Tohoku Recovery Project
For over two years immediately following the Great East Japan
Earthquake, Tokyo Electron has carried out supportive activities,
including providing donations and holding various events. Hoping
to help revitalize disaster-hit communities by making children
and local residents happy, we are providing ongoing support forrebuilding and the earliest possible recovery.
Providing donations to 87 disaster-affected
elementary and junior high schools
With the cooperation of education boards in Miyagi and Iwate
Prefectures, we donated a total of 26.4 million yen to 87
elementary and junior high schools affected by the disaster.
The schools used the donations for club activities and afterhours classes for the students.

Supporting communities based in temporary housing
In 2012, we donated health appliances and other products
to 725 locations of temporary housing in Miyagi and Iwate
Prefectures. We selected items to be shared at meeting
places to help stimulate communication between sites
and to build communities. We worked together with local
businesses in procuring and delivering items to donate inconsideration of recovery of the disaster-hit areas.
Providing students with workplace experience
With the cooperation of Iwate Prefecture’s education board,
TEL Tohoku Plant carried out a workplace experience
program for two local junior high schools.

Donating a PV power generation system
Aiming to provide opportunities to become familiar with renewable energy,
Tokyo Electron donated a total of 11 photovoltaic power generation systems
to schools and public facilities in Miyagi and Iwate Prefectures (7 in Miyagi
and 4 in Iwate). The PV systems we donated use thin film silicon PV panels,
which is the technology we are currently most focused on in our PV panel
production equipment business. By standardizing components required for
installation and using a temporary pile foundation engineering installation
method, we were able to shorten the installation work period and make itpossible to easily relocate the systems
when required along with the progress ofrecovery efforts.

34: Installation sites of donatedPV power generation systems

External Evaluation
SynapseTM Series Won an Award for Excellence at the 18th Semiconductor of the Year Awards
At the 18th Semiconductor of the Year Awards in 2012, Tokyo Electron’s
Synapse Series wafer bonding/debonding system won the Award for
Excellence in the semiconductor manufacturing equipment category.
The Semiconductor of the Year Awards have been held yearly since
1994 by The Semiconductor Industry News published by Sangyo Times, Inc.
Reporters from The Semiconductor Industry News vote on products andtechnology based on their originality, their impact on society, market share,
public reaction, and viability.
In addition to miniaturization, the semiconductor industry manufacturing
world is focused on 3DI packaging, in which multiple semiconductors arevertically stacked. TEL is focusing on TSV (Through Silicon Via), which is acore part of semiconductor 3DI packaging technology. The Synapse Series
employs 3DI packaging technology and has been optimized for large-scalemass production lines.
This award recognizes the originality and the impact of the Synapse
Series on both society and the industry. The Synapse Series was chosen from48 products and technologies nominated in the semiconductor manufacturing
equipment category.

Synapse Series wafer bonding/debonding system

Other recognition
CategoryAwards received*

Sponsor2012 SCQI Award (Supplier Continuous Quality Improvement Award)Intel Corporation

BEST in Value APPRECIATION DAY 2012

Samsung Electronics Co., Ltd.

2012 C. Grant Willson Best Paper AwardSPIE Advanced Lithography

SEMI International Collaboration Award

SEMI (Semiconductor Equipment and Materials International)

44th Ichimura Industrial Award

The New Technology Development Foundation

International Rational Process Achievement Award

Kepner-Tregoe, Inc.

Ranked 4th in semiconductor equipment manufacturing category in Patent
Power scorecard based on Pipeline PowerIEEE Spectrum Patent Power 2012

The Chief of the Tohoku Bureau of Economy, Trade and Industry Award at the25th Tohoku New Office Promotion Award (Tokyo Electron Miyagi Limited)

Nikkei Inc., New Office Promotion Association

Green Choice Champion (renewable energy)(Tokyo Electron America, Inc. Austin office)Austin Energy

Gold Level Business Winner (renewable energy)(Tokyo Electron America, Inc. Portland office)Portland General Electric Company

2012 Internet IR Commendation Award

Diawa Investor Relations Co., Ltd.

Gold Award in the magazine advertising category at the 33rd Japan BtoB
Advertising Awards in 2012

BtoB Advertising Association Japan

Bronze Award in the newspaper advertising category at the 52nd Consumer
Advertising Contest

Japan Advertisers Association Inc.

Customer

Equipment/production

Environment/safety

COMMUNITY

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

35

Comments from a Third-Party Expert
I have read the Environmental and Social Report 2013 of Tokyo
Electron Limited and received a further explanation of thecompany’s environmental and social responsibility activities
from the directors of the CSR Promotion Department and the
Corporate Environment Promotion Department and other staff
members. I would like to make my third-party comments taking
into account my observations on last year’s report.

Corporate principles and CSR
At the beginning, this report states the company’s corporate
principles, namely, its eight management policies for thedevelopment of a dream-inspiring society through its leadingedge technologies and reliable service and support. In line withthese policies, the report then explains the policy on corporatesocial responsibility. The fact that the company’s CSR promotion
framework is headed by the President implies a group-wide
enthusiasm to work on CSR, involving the head ofﬁce and all groupcompanies. Regrettably, the report does not refer to the relevance
between CSR and governance in its explanation regarding thegovernance framework, although highly viable governance isrequired to carry out the CSR activities effectively.

Expansion of new business and CSR
The company acquired two European companies and two
US companies in fiscal 2013 toward the development of
new business and enhancement of existing business. Of thecompany’s current sales, sales in Japan accounts for 24%
while sales outside Japan, including the United States andTaiwan, makes up the remaining 76%. This suggests the needto launch CSR activities globally. The head office must leadoverseas group companies in implementing energy conservation
measures and reducing environmental impact to ensurecompliance with the CSR policy. In that sense, signing andjoining the United Nations Global Compact in this fiscal year
was very significant. I hope that the company’s future reportwill cover more information on overseas group companies—for
example, what kind of new initiatives are being taken at whichgroup companies, as well as the situation for each country.

Environmental goals: Progress and results
The company reduced energy consumption at four out of six
major plants. However, overall CO 2 emissions increased at

36

plants both in and outside Japan. The report attributes thisincrease mainly to rising power emission factors. I suspectthat an increase in the number of production and overseas
group companies is another possible reason, and think thatthe report should have provided more detailed information
about that. I noted the steady progress in reducing the volume
of water consumption and waste generated. As the company
has set a goal of a 50% reduction in energy consumption for
major models by fiscal 2015, I also expect that it will makefurther contributions to reducing energy consumption and CO 2
emissions of the users of its products in the future.

Initiatives for employees
This report discloses work locations of group employees. Of allgroup employees, 33% work outside Japan. The TEL Group in
Japan intends to increase the percentage of foreign nationals
in new hires to 20%, which demonstrates the company’s
proactive approach to diversity. As management of foreign
employees, who have different cultures and customs, will
become increasingly important, I hope future reports will includecomments from foreign employees.
I recognize that the company has enhanced the content of its
reports year by year. For even further improvement, the company
must identify the type of information that it needs as well as
the information that readers want, quantify and manage thecommon information between the two as KPIs (key performanceindicators), and disclose the KPIs on a continual basis. These
efforts will help the company gain more trust from society.
Note: The third-party comment above does not constitute an opinion on theaccuracy or completeness of the information included in this report.

Yoshito Nakamura
Certified Public Accountant
Adjunct Instructor of Toyo University,
The Open University of Japan
Auditor, Supporting Organization of JOCV
Auditor, Foundation for
Accounting Research in Construction Industry
Auditor, Kawasaki City Council ofSocial Welfare
Chairman, Evaluation Committee forIncorporated Administrative Agencies,
Ministry of DefenseResponse to the Third-Party Comment
I am deeply grateful to Mr. Nakamura, who visited our Akasaka head office, enabling us to report our CSR promotion framework and theprogress of CSR activities since the previous fiscal year. Furthermore, I appreciate his comments on this report.
In response to the comments we received from Prof. Nakamura last year, this year’s report covers our progress in reducing ourwater consumption, in diversity management, and in activities across the supply chain.
This is a crucial fiscal year for our CSR activities based on the TEL Group’s corporate principles. We are aware that in order tomake our activities more viable, it is important that we promote our activities in collaboration with the corporate governance framework,
the internal control system and the risk management system. With regard toevaluation of viability, we will set a roadmap and KPIs, and develop a mechanism
to disclose our progress in specific and verifiable figures.
As for environmental activities, we have re-established our environmental
vision and KPIs for fiscal 2013 and covered our practices and progress in thisreport. This fiscal year, we will launch activities in overseas locations, including at
the four companies we acquired. We will introduce our progress in the next report
and thereafter as we go forward to the future.
Toshiya Matsuda

Moyuru Yasuhara

Director
Corporate Environment Promotion Dept.
Tokyo Electron Limited

Director
Corporate Branding Promotion Dept.
CSR Promotion Dept.
Tokyo Electron Limited

Corporate ProﬁleCompany 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,
photovoltaic panel production
equipment business

Capital:Number of locations:

668.7

800

508.0

0

497.2

2009

2010

2011

2012

Consolidated operating income
97.8

100

54,961,191,468 yen

60.4
50

14.7

12,3410

In Japan: 11 companies; 49 locations
Outside Japan: 45 companies
in 18 countries; 70 locations
Worldwide total: 56 companies
in 19 countries; 119 locations(As of April 1, 2013)

12.5
-2.1

2009

2010

2011

2012

(Persons)

10,491

10,204

10,595

10,940

2009

2010

2011

2012

12,341

5,000

Net sales by region (Consolidated)

Electronic components &computer networks
84.6 billion yen(17.0%)

3.5%

China

7.7%
Japan

EuropeSemiconductor
production equipment
392 billion yen(78.8%)(FY)

10,000

Other

Other
0.4 billion yen (0.1%)

2013

Number of Group employees

Net sales by division (Consolidated)

FY20132013 (FY)(Billion yen)0

FPD/PV
production equipment
20.1 billion yen(4.1%)

633.0

418.6

400

Number of employees: 1,530
Number of group
employees:

Consolidated net sales(Billion yen)2013 (CY)(As of April 1, each year)

23.8%

7.8%

South Korea 11.9%

FY2013
North America 23.6%
Taiwan21.7%

37

TEL Eco-Life Art Contest
The Tokyo Electron Group holds the TEL Eco-Life Art Contest every year as part of its activities toraise environmental awareness.
In 2013, we received a host of entries from all over the world.

Rice Planting

Horses at Sunset

Spring Forward(Taiwan)

Swallowtail Drinking Nectar
from Tiger Lily
(South Korea)

Yosemite Valley(Germany)

A Sunflower to Two Bees

(Japan)(USA)

Chlorophytum Comosum(China)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
http://www.tel.com(USA)

Peaceful Seagull(China)You Can Eat Unwashed Produce if it isGrown in a Clean Environment(South Korea)

Pollination(Japan)Reflections on the Water

Shining Water of Life

(Japan)(China)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.

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.

PR51-211

Published: November 2013