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

TEL Group business activities and environmental issues
Customers

Suppliers

Global climatechangeDepleted resource
problem caused byconsumption of resources

Pollution fromchemicals andwaste

Biodiversity

Shareholders/investors

Employees

Raw materials
procurement

Development/
production

Transportation

Product use

Disposal/
recycling

Activities at plants and offices
Consumer use of
semiconductors

TEL Group business activities
Local
community

Administration
organization

Stakeholders

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

Environmental
goals

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

18

1994
Start of environmental activities

The TEL Group established a special division for environmental

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

Global Environment Meeting

Environmental activity promotion framework
Product Environment Value Meeting

Energy-saving/resource-saving products, etc.

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

Operation Environment Value Meeting

Reducing environmental impact ofbusiness activities; ensuring compliance

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

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

Ecosysytem tour

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

19

Environment

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

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

%50
reduction

Main activities for fiscal 2014●

Thermal processing system TELINDY™ PE

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

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

●

50.0

Plasma etch system Tactras™ Vigus™

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

20

Equipment category

Model

Plasma etch system

TactrasTM VigusTM

50

Thermal processing system

TELINDY

66

Single wafer CVD system

Triase+TM EX-IITM TiN

50Single wafer plasma treatment system

Triase+56

Coater/developers

CLEAN TRACKTM LITHIUS ProTM Z

52Single wafer cleaning system

CELLESTA -i

69

Scrubber system

NS300+

69

Gas chemical etch system

Certas WING

Wafer prober

Precio nanoTM

TM

Reduction rate (%)

PE

SPA i

TM

TM

30.0
20.0
10.0
0
0

1000

56
69

2000

Power output (W)Energy-saving equipment

3000

Existing equipment

Liquid chemical circulation collection
Process block (front)

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

TM

40.0

Process block (back)

SPIN Area

SPIN Area

SPIN Area
Area
SPIN

SPIN Area
Area
SPIN

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

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

230.1

223.6

221.6

223.0

72.5
27.8

20.5
2011

Japan

2012

40.5
2013

2014

(FY)

Overseas

CO2 emissions from energy consumption(Tons)

120,913

117,396
87,124

84,847

12,0462011

Japan

15,0632012

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

36,44723,3162014

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

(FY)

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

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

84,847

82,13781,067

81,592

Tokyo Electron Miyagi Limited Head Office
2011

2012

2013

2014

(FY)

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

32.0
70
4
66
2011

42.2

37.8
25.9
66
3
63
2012

International logistics

60

2

54

58
2013

3
51

2014

(FY)

Logistics within Japan

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

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

21

Environment

Efforts to conserve resources
Reducing water consumption

Water consumption

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

(Thousand m3)

315

199

300

297

506

466

471

301

70 312104 290

613
531

296

64
2011

2012

2013

2014

Industrial water

Tap water

Groundwater

Overseas use

8yearsconsecutive
Achieving a recycling rate of 97% or more

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

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

97.4

97.3

98.0

Target: Maintain recycling rate of 97% or more

331
245

2011

215

2012

2013

172

2014

Incineration and landfill (Tons)
Recycling rate (%)

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

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

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

(FY)

1
2

1) Insulation

342) Heater3) Cooling pipe

4) Bottom fiber
block

(FY)

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

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

14,361

13,7091,617

169

11,732
5,071

2,059

2,031

4,541

3,787

8,469

12,665

4,144

8,203
5,914

2011

2012

2013

6,462

2014

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

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

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

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

23