Environmental andSocial Report 2015

Tokyo Electron Group

Corporate Philosophy

We strive to contribute to the development of a
dream-inspiring society through our leading-edge
technologies and reliable service and support.
VisionA real global company generating high added-value and profits to Semiconductor and FPD
industries through innovative technologies and groundbreaking solutions with diverse
integrated technologies

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

5 Employees

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

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

2 Scope of Business

6 Organizations

The TEL Group leads markets by providing high-quality
products in leading-edge technology fields with a focus
on electronics.

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

3 Growth Philosophy

7 Safety, Health and the Environment

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

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.

4 Quality and Service

8 Social Responsibility

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

Cont ent s
Corporate Philosophy/Vision/Management
Policies/Contents/Editorial Policy
Corporate Profile
Message from the President
Identifying Materiality (Important sustainability
issues)CSR Goals
Feature Article: Challenge to TechnologicalInnovation
Corporate GovernanceWorking Together with Employees
Safety Initiatives
Quality Initiatives
Procurement Initiatives
Environmental Initiatives
Social Contribution
External Evaluation (main awards received)
Comments from a Third-Party Expert/Responseto the Third-Party Comments
Performance Summary
CSR Policy
GRI Guidelines Table
UN Global Compact Table

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.

● Editorial Policy

p.2
p.3
p.4
p.6
p.8
p.10
p.12
p.16
p.18
p.20
p.21
p.22
p.28
p.29
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p.34
p.35

Tokyo Electron creates its Environmental and Social Report to inform stakeholders of
the Tokyo Electron Group’s corporate roles and responsibilities for the developmentof a sustainable society, as well as specific initiatives based on them. This fiscal year
2015 report features a Materiality (important sustainability issues) review, goals andprogress of efforts aimed at resolving pertinent issues, and performance data.
The TEL Group is committed to promoting and improving CSR activities at
Group plants and offices, while proactively disclosing the progress of such efforts.
We hope these efforts will help our stakeholders understand us better and we invite
suggestions and feedback for further communication.
● Scope of report

Tokyo Electron Group (46 consolidated companies)(Tokyo Electron and its subsidiaries in and outside Japan)* In April 2014, Tokyo Electron Device Limited changed from a consolidated subsidiary to an equity-method affiliate.

● Period covered

Fiscal year 2015 (April 1, 2014-March 31, 2015). However, some information for fiscal
year 2016 has also been included.
● Publication timing

Publication of this report: July 2015 (Japanese), August 2015 (English)
Publication of the next report: July 2016 (Japanese), August 2016 (English)
Publication of the previous report: July 2014 (Japanese), August 2014 (English)● Guidelines referred to in this report

Environmental Reporting Guidelines 2012 issued by Japan’s Ministry of theEnvironment
Sustainability Reporting Guidelines Version 3.1 published by the Global Reporting
Initiative (GRI)

2

Corporate Profile (as of April 1, 2015)

Financial Data (Billion yen)
Consolidated net sales

Company name:Tokyo Electron Limited (TEL)

Address:

Akasaka Biz Tower, 5-3-1 Akasaka, Minato-ku,
Tokyo, Japan 107-6325

Established:

November 11, 1963

Representative:

Tetsuro Higashi, Representative Director,
President & CEO (as of June 19, 2015)

Main business:

Capital:

Semiconductor production equipment business,flat panel display (FPD) production equipment
business
54,961,190,000 yen

Number of employees:

1,486

668.7

633.0

612.1

613.1

2014

2015 (FY)

497.2

2011

2012

2013

Consolidated operating income
97.8

88.1
60.4
32.2

Number of Group employees: 10,854

12.5

Number of locations:

In Japan:
9 companies; 28 locations
Outside Japan: 37 companies in 15 countries;
		48 locations
Worldwide total:	46 companies in 16 countries;
76 locations

2011

2012

2013

2014

2015 (FY)R&D expenses
81.5
70.5

2011

2012

73.2

2013

78.6

2014

71.3

2015 (FY)

Main Products
Net sales by division (Consolidated)
PV (photovoltaic panel)production equipment
3.6 billion yen(0.6%)

Semiconductor production equipment

FPD production
equipment
32.7 billion yen(5.3%)

Coater/developers
CLEAN TRACKTM LITHIUS ProTM Z

Plasma etch system
Tactras TM

Thermal processing system
TELINDY PLUS TM

Other
0.5 billion yen(0.1%)FY2015

Semiconductor
production
equipment
576.2 billion yen (94.0%)

Net sales by region (Consolidated)
Other

3.0%
China

9.5%

Taiwan23.1%

Europe10.2%
Single wafer deposition system
Trias e +TM

Single wafer cleaning system
CELLESTATM -i

Wafer prober
PrecioTM

FY2015

Japan

15.5%
U.S.

Korea

22.1%

16.6%

Gas chemical
etch system
Certas LEAGATM

Single wafer cryokinetic
cleaning system
ANTARESTM

Electrochemical
deposition system
Stratus

FPD production equipment

FPD plasma etch/ash system
ImpressioTM

Inkjet printing system for
OLED panel manufacturing
Elius™2500

Assets

2014

2015

Total

828.5

876.1

Cash & cash equivalents

268.1

317.6

Trade notes, accounts receivables

129.0

110.8

Inventories

168.2

175.5

Other current assets

56.0

66.7

Tangible assets

112.3

106.8

Intangible assets

29.5

27.5

Investment & other assets

65.1

70.8

Liabilities & Net Assets

2014

2015

Total

828.5

876.1

Net assets

590.6

641.1

Debt

13.5

0

Other liabilities

224.4

234.9

(As of March 31, each year)
Note: Figures are rounded down to the nearest 100,000,000 yen.

3

Message from the President

Transforming for
Sustainable Growth

Tetsuro Higashi
Representative Director
President & CEOTokyo Electron Limited

New challenges and innovation“We strive to contribute to the development of a dream-inspiring society through our leading-edge
technologies and reliable service and support”—guided by this Corporate Philosophy, the Tokyo
Electron Group as a member of the electronics industry is committed to contributing to the further
development of the industry and a sustainable society.
Although Tokyo Electron Limited (TEL) had been preparing for a business combination with U.S.based Applied Materials, Inc. since September 2013, the business combination agreement was
terminated in April 2015. Despite both companies having made their utmost efforts and contributed
to discussions aimed at gaining the approval of the relevant authorities, the business combination
did not go ahead because there remained a gap between our view and the view of the United States
Department of Justice. The business environment surrounding not just TEL but the semiconductor
production equipment industry as a whole has reached a turning point; however, our fundamental
policy of undertaking drastic reforms in order to ensure our own growth and contribute to the industry
as a “Globally Excellent Company” remains unchanged.
Through the business combination process, we reaffirmed the strength of TEL’s world-classcorporate culture. With confidence and pride in that strength, and with the determination to make therequired changes, we developed our new Medium-term Management Plan with a vision as part of oureffort to enhance our corporate value.

Enhancing the TEL Group’s operating base and corporate governanceIn fiscal year 2015, we proactively undertook restructuring reforms for further profitability
improvement. We withdrew from the unprofitable business of photovoltaic panel production
equipment, consolidated business locations, and sold some stocks of Tokyo Electron Device Limited,which is engaged in the electronics components and computer networks segments, changing it froma consolidated subsidiary to an equity-method affiliate. With these measures, our gross profit margin,
ROE, and free cash flow for fiscal year 2015 all improved dramatically year over year. We will step up
efforts to enhance our operating base for further business growth.
Under the new operating structure announced in May of this year, the next generation of leaders
were appointed to senior management and a new position of Chief Operating Officer (COO)
was established, reporting to the President and Chief Executive Officer (CEO). The rejuvenatedmanagement and the newly created position are intended to lead the acceleration of operations withthe goal of boldly differentiating our main business in this rapidly changing and intensely competitiveenvironment. Furthermore, the addition of experienced top executives from overseas subsidiaries toour executive officer team is expected to enhance our competitiveness at the global level.

4Message from the President Transforming for Sustainable Growth

Joining EICC®
The electronics industry, to which the TEL Group belongs, is becoming ever more challenging.
Business activities must be conducted from a socially conscious perspective and must contribute to
the sustainability of society.
To ensure our efforts to that end are broadly in line with international standards, TEL joined theUnited Nations Global Compact in July 2013. Moreover, having already conducted CSR activities prior
to fiscal year 2015, in June 2015, we joined the Electronic Industry Citizenship Coalition® (EICC®), a
CSR alliance that sets forth a code of conduct in relation to labor, safety, the environment, and ethics
for the global electronics supply chain. Even before joining, TEL had incorporated the EICC® Codeof Conduct into its corporate activities, identified social issues related to its business, and steadily
implemented initiatives to address those issues. With EICC® membership, we now aim to proactively
launch and implement such initiatives on a Group-wide basis and work with suppliers to promote CSR
throughout the industry as a whole.

Product stewardship—product development for improved environmental
performance
Having undergone a tremendous evolution involving a series of performance improvements andcost reductions, semiconductors have played an important part in the development of our advanced
information-and-communications-driven society. For further advancement, there are growing
expectations for technological innovation of both semiconductors and semiconductor production
equipment. Meanwhile, reducing environmental impact is indispensable to the formation of asustainable society. Under the slogan of “Technology for Eco Life,” the TEL Group is developing
equipment to solve environmental issues.
To limit the environmental impact of its products during customer use, the TEL Group conducts
life cycle assessments to reduce their energy consumption. In fiscal year 2014, we achieved a 50%
reduction of energy consumption for our major models (per wafer compared to fiscal year 2008).
Subsequently, in fiscal year 2015, we set a goal of reducing both energy and pure water consumption
by 10% from the fiscal year 2014 level within the next five years.

Together with stakeholders
To develop together with society, the TEL Group is building relationships through our ardent efforts tofulfill our strong commitment to addressing social issues, such as developing the next generation andmaking community-based contributions according to local needs. The TEL Group is also committed
to enhancing its corporate value by fostering employee engagement and incorporating opinions from
customers, suppliers, shareholders and other stakeholders into its business activities.
Last year, TEL identified materiality (important sustainability issues) that will drive long-term value
creation in light of social issues. This year, we verified these again with stakeholders from theperspectives of business continuity and growth and identified 20 issues, including some new ones.
We will now prioritize them to make optimal use of our management resources.
We will continue to sincerely welcome feedback from stakeholders to accelerate our transformation
and achieve our own corporate growth and that of society. We greatly appreciate your continued
support and understanding.

EICC® is a registered trademark of Electronic Industry Citizenship Coalition Incorporated.

5

Identifying Materiality (Important sustainability issues)
The Tokyo Electron Group identifies the materiality of its social responsibility by taking into account potential risks in its
business activities in light of changing international social and environmental needs, as well as through stakeholder
communications. The TEL Group also periodically examines the validity of the identified materiality and reports the progress ofactivities to stakeholders as part of its responsibilities.

Process of identifying materiality

Step

1

Identify social issues surrounding our business
Based on guidelines like the Ten Principles of the United Nations Global Compact and EICC® 1—a code of conduct for theelectronics industry—and feedback from stakeholders, a review was carried out by the Chief CSR Promotion Director, the CSR
Promotion Executive Officer, and the seven key departments in charge of CSR promotion. Social issues affecting our businessenvironment were identified.
1

EICC® (Electronic Industry Citizenship Coalition®) sets forth a code of conduct in relation to labor, safety, the environment, and ethics for supply chains in theelectronics industry.

Check the relevance of the issues to business based on the size of impact

Step

2

Step

3

Based on the relevance of the social issues identified in Step 1 with respect to the TEL Group’s business sustainability, issues that are
or will be high impact were identified.

Revisit the validity of materiality
Based on the materiality identified in the previous fiscal year, the Materiality Review Meeting, attended also by external experts,
was held to discuss the validity of each outstanding issue and issues to be added, from the perspectives of business
continuity/growth and stakeholders.

Key outcomes at the Material Review Meeting• Customers in the electronics industry expect speedy innovation. We should consider
adding “promoting innovation” and “protecting and using intellectual property” tofurther enhance the strength of the TEL Group.
• Human resource development is indispensable to continuing innovative productdevelopment and is also a source of competitiveness. It is more important than everto improve employees’ skills and abilities, respect diversity, and offer vital workplaces
that make it possible for everyone to work hard and achieve their goals.
• In enhancing governance and compliance to meet the growing demands of society, it
is crucial to recognize issues and address them on a Group-wide basis. Stakeholder
communication will play an increasingly important role in ensuring transparency andaccountability of business operations.

Identified materiality

Materiality Review Meeting (March 25, 2015)

Materiality matrix

The TEL Group will promote and improve its CSR activities basedon the following.

1
2

Reported by/on

Solid financial footing
Governance/ethics and compliance
Stakeholder communication
Product quality
Innovation management
Supply chain management
EHS1 management
Business continuity/BCP2
Environmental contribution of products
Information security
Diversity
Workplaces with vitality
Protecting and using intellectual property
Product life cycle management
Promoting energy savings
Reducing water consumption
Conflict minerals
Reducing waste/recycling
Social contribution activities
Biodiversity conservation

Annual Report3

p.8, 12–15
pp.7–8

Stakeholder perspective

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20

Issuesp.9, 18–27, 31–32
p.10
p.9, 21, 27, 32
p.8, 9, 16–19, 22–27, 31–32
p.13
p.9, 22, 24–25, 31
p.8, 13
p.8, 16–17, 32
p.8, 16–17, 32
p.11

2
4

5
16
17

18

15

8
10 9

14
13

7

6
11

12

19

pp.8–9, 18–27, 31–32
p.9, 22–27, 31

20

p.9, 24, 26, 31
p.9, 21, 32
p.9, 24, 27, 31
p.8, 28–29, 32

Business continuity/growth perspective

p.9, 23

EHS: environment, health and safety
BCP: business continuity plan

61

Identifying Materiality (Important sustainability issues)

Stakeholder Communication
Our belief in stakeholder communication
The TEL Group strives to maintain good relationships and build trust with stakeholders who have, or are likely to have, an impact on its
business. To help our stakeholders properly understand the value of the TEL Group, we ensure transparency and accountability of ouroperations by disclosing information in a fair, impartial and timely manner. Communication with stakeholders is imperative for us to understandtheir expectations for the future of the Group, and can help us minimize our social and environmental risks and identify areas needing
improvement. Such stakeholder communications shape our business with further opportunities, advantages and competitiveness.

Use of stakeholder communication
Business cannot be undertaken without stakeholders and society. We identify important stakeholders who are essential to the TEL Group’sbusiness. For these stakeholders, we clarify our roles and responsibilities related to the corporate functions they face in daily business. While
helping such stakeholders fully understand the progress of our business activities and future plans, we make use of the feedback obtained
from the communication for our business at an early stage.

Measures against stakeholder communication-related risks
To act in a fair and timely manner with regard to stakeholders obtaining our information, we periodically file our official report to the
public domain and make our press release and information available on our official website. To secure communication channels with any
stakeholders, contact information is clearly indicated on the website.

TEL’s keystakeholders

Functions in charge

Shareholders/investors

Management, IR

Customers

Sales, R&D, Marketing

Suppliers

Procurement

Employees

Management, HR

Local communities

General Affairs

Governments/associations

General Affairs

1

Key communication methods

Earnings announcement (quarterly), interviews, overseas roadshow(once or twice/year)
Interviews, executive meetings, survey (annual), Technology conference
Business Update Briefing (biannual), Partners Day (annual), STQA1 audit,
interviews
Employee meetings, Technology conference, interviews, survey (annual)
Factory tours, participation in and hosting local events and contributions,interviews
Compliance to laws/regulations, filing to the public domain, monitoring
and advocacy, coalition with industry and external groups

STQA: Supplier Total Quality Assessment

Examples of stakeholder communication
Example 1: FTSE4Good Global Index

Example 2: Technology Conference
The TEL Group considers building networks for communication
with customers and within the Group as indispensable for driving
innovation and making effective use of information assets. We
hold the Technology Conference internally and externally for
information sharing and multifaceted communication. Bothparticipating customers and employees have provided favorable
feedback on the conferences.

Tokyo Electron selected forinclusion in the FTSE4Good
Global Index
In recognition of our initiatives in communication and disclosure,
FTSE, a wholly owned company of the London Stock Exchange,
has selected Tokyo Electron for the FTSE4Good Global Index
every year since September 2003. The Index is designed tomeasure the performance of companies demonstrating strong
Environmental, Social and Governance (ESG) practices.

Technology Conference7Tokyo Electron GroupCSR Goals
To measure the progress of CSR initiatives, the Tokyo Electron Group examines sustainability issues to be prioritized byfunctions and sets annual targets and goals. Each target and goal is linked with Materiality (important sustainability issues; p. 6).
Fiscal year 2015

Targets/Materiality

Goals and results

Theme

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

Sustainability management

CSR

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

Materiality:
Governance/ethicalbehavior and compliance

Communication

Stakeholder
communication
Social contribution
activities

EthicsHuman Resources
SafetyEnhance transparency and accountability.

Social contribution

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

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

The Code of Ethics

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

Diversity[Goal]

Diversity

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

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

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

Occupational safety andhealth[Goal]

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

Work-life balance[Goal]

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

Work-life balance

Support for balancing workand family

Improve working behavior to balance
work and family by offering support
systems.

Product safety[Goal]

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

Product safety

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

Accident prevention[Goal]

Accident prevention

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

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

Safety and health firstfor everyone

Product life cycle
management

Set the policy and implementation plan.

Disclosure• Review the current system• Formulate an improvement plan

Workplaces with vitality

EHS management

Stakeholder engagement

Improve the management
system.

Diversity

Product quality

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

Ethics and compliancemanagement

EHS management

Materiality:

EICC®

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

Information security

Materiality:

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

Governance/ethics andcompliance

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

Goals
CSR management

Ethics and complianceeducation
Embed ethics into practiceMateriality:

Fiscal year 2016

Theme

Employee healthcare
Identify and respond quickly for
employee health.
[Results] Ongoing. Started employees’
healthcare alerts to supervisors.

Accident prevention. Implement
cause-analysis and intelligencesharing to prevent similar
accidents.
[Results] Achieved.
• Conducted safety patrols,
new Fab safety checks.
• Reduced TCIR* by 28% andpotential severe injury by
38%, year on year.
* TCIR: Total Case Incident Rate. This is theoccurrence rate of workplace accidents(Occupational Safety and HealthAdministration (OSHA) standard) per 200,000
hours worked.

Safety education[Goal]

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

Safety education

Improve safety behavior
including practicaleducation.

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

Safety management[Goal]

Safety management

Clarify policies and organize
group-wide function.

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

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

8Tokyo Electron Group CSR Goals

Fiscal year 2015

Targets/Materiality

Procurement

Theme

Developing a
reliable supply
chain management
framework

Goals[Goal]

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

CSR activities
across the
supply chain

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

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

Conflict
minerals

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

BCP[Goal]

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

BCP

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

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

Quality
improvement

Reduce accidents
resulting inproperty damage

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

Quality
management[Goal]

Improvingcustomersatisfaction

Improve quality ofequipment training

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

Improvingcustomersatisfaction

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

Product quality

Product life cycle
management
Conflict minerals

Quality

Theme

CSR activities
across the
supply chain

Materiality:

Supply chain
management

Fiscal year 2016

Goals and results

Launching quality
improvement
activities globally

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

Materiality:
Product quality
Product life cycle
management
Products

Environment

Plants andoffices

Solvingenvironmental issues
through our leadingedge technology andservices

Materiality:

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

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

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

Compliance with
Chinese RoHS

Global launch[Goal]

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

Promotingvoluntary productcompliance with
European RoHS

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

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

Compliance withthe environmental
regulations of eachcountry

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

Promoting a
reduction in energy
consumption

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

[Goal]

Reduce water consumption (Maintain the level of
FY2012).
[Results] Achieved. 10 out of 15 goals were achieved.

Reducing water
consumption

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

[Goal]

Recycling waste

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

Green procurement

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

Reducing theenvironmental
impact of logistics

Continue activities.

Environmental
management
systemRespond to 2016 revisions.

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

[Goal]

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

Plants andoffices

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

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

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

EHS management
Environmental
contribution of
products

Compliance
Products[Goal]

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

Environmental
management

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

Environmental
education

Provide web-based education on design for theenvironment.

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

Design for theenvironment

Develop education programs and implement them forprocurement.

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

Environmental
communication

Continue to publish Environmental and Social Report.

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

Biodiversity
conservation

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

Reducing water
consumption
Reducing waste/
recycling
Biodiversity
conservation

9

Feature
ArticleChallenge to Technological Innovation
Dramatic improvement of performance of semiconductors has been achieved withminiaturization and the use of larger wafers. This evolution has been supported bysemiconductor production equipment, and Tokyo Electron is committed to taking on challenges
for innovative technological development to provide greater value to customers.

Innovation Management
Application-oriented device development
The emergence of smartphones gave rise to a new need for “application-oriented”
semiconductor device development, with a focus on functions and performance
demanded by users. This development requires not only differentiation in device
design, but also diversification of materials and process technology. As a manufacturerof semiconductor production equipment, TEL has addressed all technologicalpossibilities and worked on technological development with a system comprehensively
prepared for future technologies. This system includes in-house development and joint
development with customers, as well as mid- to long-term cooperation with universities
and consortia for promising technologies.

Taking on challenges for miniaturization and higher performanceWith ever-growing demand for further miniaturization and higher performance ofsemiconductors in recent years, TEL is working on the development of innovativeequipment.
We are jointly developing EUV (extreme ultraviolet) exposure technology, which is
expected to serve as a next-generation lithography technology, with imec1 and otherglobal consortia and exposure equipment manufacturers. As for multiple patterningtechnology, which achieves miniaturization with unique deposition and etching
technologies, we are developing a process that focuses on reducing patterning cost,
aiming to bring the 10-nanometer node to practical use.
Meanwhile, we are demonstrating the equipment and process technology for
3DI (three-dimensional integration) technology, which allows production of higher
performance semiconductors with three-dimensional chip stacking. We accomplish
this through process integration evaluation with a consortium.
1This semi-batch ALD deposition system
based on a concept different from theconventional ALD method can achieve
high-quality nanoscale deposition while
maintaining high productivity.

imec: A world-leading nanoelectronics research center. imec conducts joint research with businesses
around the world on technology for information and communications, healthcare, and energy fortechnological innovation based on scientific knowledge.

High-speed, large-scale data processing and power-saving
device development
To achieve the goals of future device development—high-speed, large-scale dataprocessing and power-saving devices—we are conducting research on next-generation
semiconductors using new materials that outperform conventional silicon. We areworking on commercialization of gallium arsenide (GaAs) for higher-speed processing andgraphene for power-saving devices, as well as undertaking research and development ofsilicon photonics2 as a communication technology with low power consumption.
As an initiative to achieve lower power consumption with next-generation devices,
we are focusing on MRAM and participating in an industry-government-academia joint
research program at Tohoku University’s Center for Innovative Integrated Electronics
Systems (CIES), to which we provided support for construction.
2

ALD System
NT333TM

Silicon photonics: Technology for forming integrated circuits on silicon by using photonic devices

10

Metallization System
Triase +TM EX-IITM TiNThis is the latest single wafer metal deposition
system for next-generation devices. Featuring
low temperature, excellent step coverage, andthin-film controllability, this system can handle
various deposition materials.

Tohoku University, Center for Innovative Integrated
Electronics Systems (CIES)

Feature Article: Challenge to Technological Innovation

Protecting and Using Intellectual Property
Policy for intellectual property activities

Number of Active Issued Patents

A fundamental tenet of the Tokyo Electron policy for intellectual property (IP) activities
is to contribute to an increase in corporate revenues by supporting TEL’s businessactivities in both existing and new market sectors by protecting TEL’s IP. With thispolicy, TEL is developing an IP portfolio to protect its own products in line with its
technological and product strategies. Furthermore, TEL fully respects IP rights of third
parties. TEL strives to minimize the risk of potential disputes, which could interfere withour business activities, by actively monitoring developments in technology, products,
and IP rights, and taking appropriate measures.

14,021
1,344

12,539
1,074

1,634

1,889

1,983

2,780

2,875

2,847

596

439

354

3,799

4,221

4,299

4,326

4,317

4,891

5,227

5,288

1,486

1,435

2,520

2,275

555

580

16,376
16,421
1,647
1,623

15,776
1,654

3,458

3,717
2011

2012

Japan

U.S.

2013

Europe

2014

Korea

2015 (FY)

TaiwanChina

Operation of intellectual property activities
TEL allocates IP personnel to product development centers and manufacturing
facilities, where R&D are performed, as well as to corporate headquarters, where
our sales and marketing departments are concentrated, in order to have them work
closely with the departments to develop an IP portfolio and minimize the risk of IP
disputes. IP personnel also educate engineers and disseminate information to increaseawareness and knowledge of IP. In developing the IP portfolio, these personnel
organize invention disclosure campaigns and invention mining sessions to ensure R&D
achievements be entitled to IP rights. Additionally, for each area of business and R&D,
they regularly convene IP committees, composed of IP staff and managers as well as
sales/marketing managers and R&D managers. These committees discuss and makedecisions about portfolio development and optimization, as well as policies and options
for minimizing the risk of IP disputes, in view of market, technological and competitive
trends and cost-benefit analyses.

Achievements of intellectual property activities
For the protection and effective use of IP in regions where TEL and its customers
operate their business, TEL files patent applications not just in Japan but also in othercountries. At TEL, the global application rate (percentage of applications for inventions
filed in multiple countries) has remained at around 70% for five consecutive years,
surpassing by far the average of other Japanese companies. Moreover, TEL fully
examines the details and patentability of invention disclosures before filing. Thus, TEL
achieved a 74% and 62.8% success rate (or “allowance rate”) for applications filedin Japan and in the United States, respectively, in 2013. These figures exceed theaverage success rates in each country. Additionally, TEL takes low-cost procedures
such as direct transaction with local patent firms for filing foreign patent application.
Efficient portfolio development with a high success rate and low operating costs is oneof the sources of TEL’s competitiveness.
TEL’s portfolio contributes not only to the differentiation of its own products andenhancement of its competitive advantage but also to revenue improvement throughlicensing and selling to other companies.

Invention mining session

Global Application Rate at JapaneseCompanies
67.8

71.8

74.0

70.3

25.0

27.0

30.0

31.0

2011

2012

2009

2010

TEL

All-applicant average

Source:67.1

2013
Filing year
(calendar year)

Statistics on Patent Filing and Examination by the Japan Patent Office* TEL’s global application rate in 2013 was compiled by TEL.
Japan Patent Office data has not been released.

Patent Allowance Rate
67.7
62.4
50.1
45.6
2009

73.9

74.2

71.8

73.4

55.0

60.5

49.0
2010

51.2
2011

78.0

74.0

66.8
66.9
53.9

2012

70.0
62.8
53.5

2013
Allowance year
(calendar year)

TEL (Japan)

All-applicant average (Japan)

TEL (U.S.)

All-applicant average (U.S.)

Source:11

TEL and all-applicant average in Japan: Statistics on Patent Filing andExamination by the Japan Patent OfficeAll-applicant average in U.S.: Patents Dashboard by the United States
Patent and Trademark Office
TEL (U.S.): TEL

Corporate GovernanceAs the globalization of its business progresses, the TEL Group believes that enhancing corporate governance is
crucial to achieving management that emphasizes improving corporate value for all stakeholders. The TEL Group isbuilding an optimal corporate governance structure that is highly effective at improving and strengthening its internal
control system and risk management system.

Corporate GovernanceCompensation for corporate directors andAudit & Supervisory Board Members

Tokyo Electron endeavors to establish and operate optimal andhighly effective structures of governance based on its three basic
principles: (1) Ensure the transparency and soundness of business
operations; (2) Facilitate quick decision-making and the efficient
execution of business operations; and (3) Disclose information in atimely and suitable manner.

Tokyo Electron has adopted the following executive compensation
program with the intention of tying compensation more closely
to financial results and shareholder value, raising corporate
competitiveness, and enhancing management transparency.
1. The compensation for corporate directors consists of a monthly
fixed remuneration and a performance-linked compensation.
2. The performance-linked compensation system for corporate
directors is designed to align compensation more clearly withfinancial results and increases in shareholder value. It takes
into account consolidated net income and consolidated returnon equity (ROE), two performance indicators of consolidated
business results. Necessary adjustments are then made when
there are special factors that should be taken into account, suchas principal performance indicators for the term under review,
including profits and losses, and so on. In principle, performancelinked compensation comprises cash bonuses and stock-based
compensation. Performance-linked compensation is limited to fivetimes the fixed yearly remuneration. The ratio of cash bonuses tostock-based compensation has generally been one-to-one. Stockbased compensation consists of granting share subscription rights
with a set strike price of one yen per share and a three-year vesting
period before the granted stock options may be exercised.
3. The performance-linked compensation of outside directors does
not include stock-based compensation.
4. The compensation for Audit & Supervisory Board Members
consists only of a monthly fixed remuneration, to maintainindependence from management.
5. Retirement allowance systems for corporate directors and Audit &Supervisory Board Members have been abolished since the endof fiscal year 2005, as part of the revisions to Tokyo Electron’s
executive compensation program.

The corporate governance framework
Adopting an audit and supervisory board system based on the
Companies Act of Japan, Tokyo Electron has established its
own Nomination Committee1 and Compensation Committee2 toincrease the transparency and objectivity of its management. The
Company adopted the executive officer system to facilitate decisionmaking and, in 2015, established its Corporate Senior Staff (CSS),
mainly comprised of its executive officers, as a global body forthe deliberation of TEL Group strategies. Moreover, recognizing
the importance of managerial transparency for shareholders,Tokyo Electron has been disclosing the remuneration of individual
representative directors in its business reports since 1999.
[Report for the fiscal year ending March 31, 2015: http://www.tel.com/ir/stocks/
asm/document/52_01.pdf]
1 Nomination Committee: This committee nominates candidates for directors anda candidate for CEO, which it submits at the meeting of the Board of Directors
for approval.
2 Compensation Committee: This committee develops proposals for the executive
compensation program and the compensation to be paid to representative
directors, which it submits at the meeting of the Board of Directors for approval.

Diagram of the Corporate Governance Framework, Internal Control System, and Risk Management System (as of April 2015)
Shareholders’ Meeting
Board of Directors

Audit & Supervisory Board• Compensation Committee • Chief Business Ethics Director • Chief CSR Promotion Director• Chief Internal Control Director• Nomination Committee

Representative
Directors

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

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

Confirm the progress of improvements and give instructions

Audit and
improvement reports
Request for improvement/
ReportExecutive Officers

Internal Audit Dept. (Global Audit Center)

Request for improvement/
ReportCSR Promotion Council

Audit

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

Administrative Depts.

Monitoring

Business Depts.

Check and balance

12

Independent Auditors

Corporate Governance

The Board of Directors

Auditing by internal audit department

The Board of Directors consists of 13 directors, two of whom
are outside directors. Directors serve a one-year term in orderto ensure that Tokyo Electron can respond quickly to thechanging business environment, as well as to more clearly
define management accountability. To ensure and maintainthe soundness and appropriateness of business practices,notwithstanding the rapidly changing market environment andtechnological industry trends, management by people whohave specialized knowledge and experience in the industry isessential. Based on this premise, the Board of Directors is mainlycomposed of internal directors, but outside directors are also
invited to join in order to objectively ensure the effectiveness ofboard decisions.

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

Business continuity management
After 2012, the TEL Group redeveloped its Business Continuity
Plan (BCP) at the headquarters to respond to large-scale
earthquakes. The BCP is being developed at the plant and officelevels by reviewing measures for early recovery and alternate
production following a disaster.
Emergency supplies, such as food and drinking water, alongwith first-aid outfits for times of disaster, are made available at all
times and thorough measures involving a disaster scenario arecarried out across the entire Group.

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 attend meetings ofthe Board of Directors and other important business meetings,
audit the directors’ performance of duties, determine audit policy
and the division of auditing duties among Members at Audit &Supervisory Board meetings, and examine the Group’s executionof operations. Through these and other measures, Audit &Supervisory Board Members work to provide effective auditing.

Information security management
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 leakage to ensure appropriate
management and safe and effective use of information assets.
In order to strengthen management of technical and businessinformation across the Group, we review operation rules, as
needed, and regularly provide web-based education for all
executives and employees of Group companies in Japan andoverseas. We also review rules related to information security. To
get across the contracts and ensure rule compliance, we obtainconsent for rule compliance from all executives and employees of
TEL Group companies, including those overseas, every year.
Additionally, we have established a system for reporting
incidents that lead to actual information leakage as well as thosewith that possibility. In light of these reports, we respond promptly
to each incident and integrate analysis results into Group-wide
efforts and measures.

Internal Control/Risk Management
In order to enhance the TEL Group’s corporate value andremain accountable for our actions to all stakeholders, weare making efforts to strengthen viable internal control. This
involves implementing practical measures that are in line with
the Fundamental Policies concerning Internal Controls within
the Tokyo Electron Group, set out by Tokyo Electron’s Board of
Directors. We are also conducting activities for internal control
over financial reporting based on the Financial Instruments andExchange Act of Japan. In response to the May 2015 changes
to the Companies Act and the Ordinance for Enforcementof the Companies Act, Tokyo Electron has updated theFundamental Policies concerning Internal Controls within theTokyo Electron Group. The Company is working to strengtheninternal control systems as a corporate group and to improve
the audit system of the Audit & Supervisory Board in terms ofconcreteness and robustness.

Risk management system
To more effectively strengthen the internal control and risk
management systems of the entire TEL Group, Tokyo Electron
appoints a Compliance & Internal Control Executive Officer.
Furthermore, the Company has established a dedicated risk
management and internal control function within the General
Affairs Department to manage and reduce risks throughnecessary measures such as, for example, analyzing risks
that could affect the TEL Group and instructing responsible
departments to conduct self-assessments of major identified
risks. The function also regularly reports the status of risk
management activities to the Audit & Supervisory Board
Members and the Board of Directors.

13

Corporate GovernanceBusiness Ethics and Compliance

Compliance education

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 Tokyo Electron Group, all Group executives and employees
are required to maintain high standards of ethics and to act with aclear awareness of compliance.

Through the TEL Group’s e-learning system, we provide acommon web-based training program covering the basics ofcompliance, export-related compliance, and other topics. All
executives and employees are required to complete this training,as well as a web-based training program on insider trading andother subjects tailored to specific positions and job roles.
In fiscal year 2015, we completely redesigned the existingbasic compliance education program to include details on
how to handle the confidential information of other companies
and specific cases of conflict of interest. We provided the new
education program to all executives and employees of Group
companies in Japan. As of March 2015, we are providing
web-based education on the Act against Delay in Payment of
Subcontract Proceeds, Etc. to Subcontractors of Japan to all
executives and employees of Group companies in Japan toensure fair transaction.
We also provided web-based, test-format education on
business ethics and compliance to all Group executives andemployees in fiscal year 2015, including those overseas, as we didin the previous year. These efforts will be continued every year.

Improving business ethics
In 1998, Tokyo Electron formulated the Code of Ethics of
the Tokyo Electron Group to establish uniform standards togovern all of its global business activities. In the same year,
the Company appointed a Chief Business Ethics Director andestablished the Ethics Committee, which is responsible forpromoting business ethics awareness throughout the TEL Group.
The Ethics Committee comprises the Chief Business Ethics
Director, the Ethics Committee Chairman, and presidents ofmajor Group companies in and outside Japan. The members
meet semiannually, report on ethics-related issues faced byeach company, and discuss measures to further improve ethicalbehavior and compliance.
The Code of Ethics is reviewed, as appropriate, in responseto changes in the expectations of society. In January 2015, ananti-corruption statement was added to the introduction basedon Principle 10 of the UN Global Compact about working against
corruption including extortion and bribery.
The Code of Ethics and its Q&A section are published inJapanese, English, Korean and Chinese and disclosed on theintranet to enable all Group executives and employees, including thoseoverseas, to view them at any time.

Web-based, test-format education[Code of Ethics: http://www.tel.com/environment/corp_governance/compliance/
ethical.htm]

Internal reporting system

Compliance system

In the event that an employee becomes aware of any activity
that may violate a law, regulation, or principle of business ethics,
the TEL Group operates an internal reporting system that
employees may use to report their concerns. An ethics hotline
and a compliance hotline have been established for all Group
companies, and this reporting system is also in place at eachoverseas location. In all cases, this system ensures that strict
confidentiality is maintained to protect whistleblowers and ensurethat they are not subject to any disadvantage or repercussions.
There has been no violation of compliance that could have had amajor impact on the Company’s business or local community infiscal year 2015.

Tokyo Electron has appointed a Compliance & Internal Control
Executive Officer from among its executive officers to raiseawareness of compliance across the TEL Group and further
improve its implementation. The Company has also drawn up theCompliance Regulations, setting out basic compliance-related
requirements in line with the Code. The Compliance Regulations
are intended to ensure that all individuals who take part in thebusiness activities of the TEL Group clearly understand thepertinent laws, international standards, and internal company
rules, and consistently apply these rules in all of their activities.

14

Corporate Governance

CSR Promotion Framework

Approach to CSR

President & CEO

The Tokyo Electron Group believes that achieving sustained growththrough sound business practices forms part of its corporate social
responsibility to stakeholders. To achieve this, we must not only
provide high-quality products and services, but we must also be
a company that is esteemed in terms of good faith, fair corporate
activities, the pursuit of safety and environmental preservation,
respect for human rights and ethics, crisis management, corporate
governance, and compliance.
The Tokyo Electron Group carries out initiatives based on its CSR
Policy and in response to the opinions of its stakeholders.

Chief CSR Promotion Director
CSR Promotion Executive Officer
CSR

Ethics

Personnel

SafetyQuality

Environment Procurement

CSR Promotion Council
TEL Group companies(11 locations worldwide)

Key initiatives for fiscal year 2015
In fiscal year 2015, the CSR Promotion Council, comprising seven CSR promotion
departments and CSR promotion executives, set specific indicators for departmentspecific issues and measured achievements. Separate from the biannual council
meeting, a monthly working-level liaison meeting was established to actively discuss
CSR issues in a timelier manner. To promote EICC® on a company-wide basis, the TELGroup held internal seminars and invited guest lecturers to make presentations. The
events were attended by around 120 people in charge of CSR promotion.
Internal presentation on the EICC® Code of Conduct

Participation in CSR Initiatives
To work on CSR issues from a broad perspective and make improvement efforts, the TEL Group proactively participates in various
initiatives.
The TEL Group decided to join
EICC® in June 2015. EICC® sets
forth a code of conduct for labor,
safety, the environment, and ethics
to be used in the management of
supply chains.

Since July 2013, the TEL Group has
been a member of the United Nations
Global Compact. In support of its Ten
Principles, the TEL Group will continue
to work to maintain the harmonious
pursuit of both its corporate activities
and a sustainable society.

TEL Group CSR Policy❹ Environment
The Tokyo Electron Group seeks to achieve harmony with the global
environment. We strive to reduce our own impact on the environmentand contribute to reducing the environmental impact of ourcustomers by developing and providing eco-friendly products.

❶ Corporate Activities
The Tokyo Electron Group will provide safe and high-quality products
and services to customers around the world and contribute to therealization of an enriched society.
❷ Business Ethics
The Tokyo Electron Group acts in compliance with the laws andregulations of each country and with international regulations, as well asin accordance with strict business ethics. We refrain from engaging inany conduct that impedes fair and open market competition.

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

❸ Respect for Individuals
The Tokyo Electron Group respects the individuality and uniquecharacter of each person. We recognize and appreciate the diversityof our employees, share a sense of mission with them, and promote
the development of workplaces with vitality.

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

15

Working Together with Employees
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 Tokyo Electron Group seeks to be a
corporation where a diverse range of employees can work to their full potential.
Employee retention rate three years after
joining the company

Worker-friendly Environment
Personnel system
In order to achieve our goal of creating an inspired, innovative and energetic company,
we adopted a personnel system that promotes both the growth of individual employees
and the organization as a whole. For example, our evaluation system values not only
results, but also the initiatives taken to achieve them. We also provide our employeeswith opportunities for personal development. Furthermore, we engage in fair treatment
and skills evaluation, so that talented employees who make significant achievements
are well rewarded, and managerial personnel have incentives matched to their level of
responsibility (job grade).

93.6%* Average in recent five years; refers to Group
company employees in Japan excluding Tokyo
Electron Device Limited

To enable new hires to quickly get oriented intheir workplace and comfortable with performing
their duties, the TEL Group has adopted an
Off-JT System1 and an OJT System2. We also
hold regular interviews to keep up-to-date withand discuss the state of the workplace andemployee relations, in order to ensure a pleasantwork environment for all employees.
Off-JT System: Off-the-job training system. The
system allows employees to develop their skills off
the job, such as by participating in collective training
and attending classes.
2
OJT System: On-the-job training system. This
education method allows employees to learn throughthe performance of actual work and to hone theirskills through a gradual increase in the level difficulty.
1

Initiatives for work-life balance
We have enhanced our childcare support system and nursing care leave system tohelp employees continue to pursue their career while experiencing various life events.
According to Japanese law, for example, companies must take measures such as
reducing regular working hours for parents with children under the age of three.
Tokyo Electron goes beyond this minimum, giving parents of children of elementary
school age or younger the option to work shorter hours, as well as offering additional
assistance in balancing work and family life (see the graph on the right). As a result of
these measures, in fiscal year 2015, 52 employees (95% of the total number of eligible
employees) took childcare leave, and another 46 returned to work after taking childcare
leave. At the same time, about 34% of female employees in Japan are successfullybalancing work and family as working mothers, continuing to develop their careers.

Users of shorter working hour systemfor childcare[Persons]

130
109
85
75

65
47

50

50

53

2012

2013

2014

2015 (FY)

34

2011

Improving employee health and the workplace environment
The TEL Group places the highest priority on safety and health of its employees. In
February 2012, we issued a health declaration stating our commitment to providing
our employees with services like walking activities to promote health, healthy meals
at company cafeterias, physical health counseling with doctors, and mental healthcounseling.
In fiscal year 2015, we organized health seminars and various events with a “healthy
diet” theme, while holding events to measure body composition, bone health, andblood vessel age to help employees understand the state of their health.
Additionally, we are making continued efforts to ensure that TEL is a safe andproductive workplace by providing all employees with mandatory education forpreventing workplace harassment, as well as external professional counseling services.

16

Children under the age of threeChildren over three years old but not yet completed
elementary school* Refers to employees of Group companies in Japan excluding
Tokyo Electron Device Limited

Examples of healthy meals at company cafeterias

Working Together with Employees

Number of Group employees

Initiatives for globalization and diversification

12,304(Persons)

The TEL Group globally operates its business. As of March 2015, sales outside ofJapan make up 85% of the Group’s total sales. Meanwhile, about 34% of TEL Group
employees work outside Japan.
Recognizing that every person is entitled to have his or her basic human rights
respected, the TEL Group works to create an excellent work environment and strives
to be a corporation where employees with diverse backgrounds and abilities can work
to their full potential. One such effort is establishing an environment where physicallychallenged employees can work without any inconvenience to promote employmentof those who are physically-challenged. As a result, the proportion of physicallychallenged employees is 2.0% at TEL and 1.9% at all Group companies in Japan.

12,201

10,343 10,684

8,205

8,186

8,004

7,908

10,844

7,166

1,084

1,150

305

313
1,217

1,046
2011

2012

2013

Japan
Asia
Worldwide

Europe

1,633

1,652

888

888

1,494

1,559
2014

1,622
644
1,412
2015 (FY)U.S.

* Excluding Tokyo Electron Device Limited in fiscal year 2015

Proportion of employees working inJapan and outside Japan

Human Resource Development
TEL UNIVERSITYThe TEL Group has an internal education institution, TEL UNIVERSITY, for strengthened
people development as well as enhanced capabilities of the entire organization.
TEL UNIVERSITY courses include such programs that provide individual employeeswith world-class knowledge and skills, leadership development programs for nextgeneration leaders, and management and organizational training programs.

23.5%

25.1%

76.5%

End ofMarch 2011

32.9%

33.3%

33.9%

74.9%

67.1%

66.7%

66.1%

End ofMarch 2012

End ofMarch 2013

End ofMarch 2014

End ofMarch 2015

Employees working outside Japan
Employees working in Japan* Data as of the end of March 2015 excludes Tokyo Electron
Device Limited.

Main initiatives for fiscal year 2015
For TEL Group employees working around the globe, ability to communicate is oneof the most important skillsets. In fiscal year 2015, we held seminars on improving
communication and facilitation skills at TEL Group companies in Japan. To help
employees from different cultures understand each other, achieve common goals, andunleash the full extent of individual and organizational abilities, we provided a crosscultural communication program in which 1,420 employees participated. As for English
learning, we improved English conversation and self-learning courses so that each
employee can choose a class that suits his or her duties and current skill level.
Furthermore, we hold career design seminars to help individual employees think
about the way they live and work, and to take proactive and positive action accordingly.

Examples of programs hosted by
TEL UNIVERSITY
Number of participants by program for fiscal year
2015
English conversation class

478 classes

2,742 persons

Communication seminar

15 classes

250 persons

Cross-culturalcommunication program

42 times

1,420 persons

Career design seminar

12 times

290 persons

Next-generation leadersdevelopment program

10 times

10 persons

Management training

4 times

69 persons

Semiconductor seminar

6 times

89 persons

Voice <Balancing Work and Childcare>

I took childcare leave twice, and I am now using the reduced working hours systemfor childcare. Particularly in the first year after returning to work, I often had to takea sudden leave of absence when my child became sick. There was a time when I
couldn’t make it to work more than half the time in any one week, and I found it difficult
to pursue my career in this condition. Fortunately, many of my colleagues are awareof the importance of mothering. Thanks to the understanding and support of people
around me, I have been able to balance my work and family responsibilities.
I am so grateful, not only for the childcare support system, but also for a work
environment that allows me to continue to work and pursue my career development
while raising my children.

17

Risa Kawano
Intellectual Property Department
Tokyo Electron Limited

Safety
The Tokyo Electron Group performs a range of business activities including development, manufacturing,transportation, installation, and maintenance with the highest priority on the safety and health of all
personnel from top management to frontline staff and makes proactive and continuous improvements toenhance safety and promote good health.

Safety Promotion Framework
Raising safety awareness for all individuals is crucial if we are to provide worksites
where all employees can work safely. With the safety slogan of “safety first,” theTEL Group has established the Equipment Safety Promotion Meeting and the Work
Safety Promotion Meeting under the supervising EHS Meeting. The Equipment Safety
Promotion Meeting enhances safety by ensuring compliance with safety standards andequipment-safety-related laws and regulations. The Work Safety Promotion Meeting
discusses, and puts into practice, matters related to work safety at customer locations
and TEL Group locations, from a global perspective. These meetings identify causesof accidents resulting in injury and/or damage, due to either equipment or human error,
and make efforts to prevent similar incidents from reoccurring.

EHS promotion framework
Representative Director,
President & CEO
General Manager,
Development &Manufacturing Division
EHS Meeting
Equipment
SafetyPromotion
Meeting

Work
SafetyPromotion
Meeting

Product
Environment
Value
Meeting

Product
Environment
Compliance
Meeting

Operation
Environment
Value
Meeting

Equipment Safety Design
The TEL Group carries out risk assessments in consideration of the product life cycle,
even from the development phase. Based on the assessment results, the TEL Group
implements intrinsically safe equipment design1 to reduce the risks that machines poseto humans. The Group also examines and ensures compliance with changing laws
and regulations around the globe, abiding by all safety regulations of the regions ourequipment is shipped to, and allowing inspections by safety certification organizations
when necessary.
Safety considerations in the phases of equipment design and development havebecome increasingly important in recent years. Today, compliance with internationalsafety standards and guidelines is a requirement for equipment to be recognized as
being safe for use. Since 2007, the TEL Group has provided web-based equipment
safety education to help its engineers learn about safety in the context of equipment
design. This gives them the basic safety knowledge required in terms of risk
assessment and introduces examples of accidents. In the coming fiscal year, we plan
to revise the education program to include the latest accident cases and new safety
standards to further educate our engineers.
As a result of these efforts, there were no serious injuries caused by product designin fiscal year 2015.
1

Intrinsically safe equipment design: Innovative machinery design that eliminates the causes of machinery-related
hazards posed to people.

Topics <TEL FSI, Inc. Received Governor’s Safety Award from Minnesota Safety Council 2>

In recognition of its outstanding activities for accident prevention and labor safety,
TEL FSI, Inc. received the Governor’s Safety Award for Meritorious Achievementfrom the Minnesota Safety Council. The council has presented the Governor’s Safety
Awards every year since 1934 to honor businesses that are conducting outstanding
safety activities. The council selects award winners by comparing recent injury andillness data with national industrial data for past years and examining the operation ofcomprehensive safety programs.
2

Minnesota Safety Council: A non-governmental, non-profit organization established in 1928 to improve thequality of life of people in Minnesota through the elimination of preventable work-related accidents.

18

Implementation of risk assessment
DesignResearch andDevelopment

Manufacturing

Process
engineering

Services

Installation/
start-up

Quality assuranceSafety

0.24[TCIR]

Initiatives for Work Safety
To secure the safety of all people involved in its business, including regular employees,
temporary staff, subcontractors, and customers, the TEL Group continuously improves
its activities to prevent work-related accidents. This is accomplished by identifying andanalyzing potential risks in workplaces and sharing the knowledge group-wide.
Each plant and office is aggressively promoting safety activities by establishinga system under which representatives from each department conduct safety patrols
at least once a month to solve problems by their own initiative. This is in addition toa management system based on OHSMS1. New plants and offices outside of Japan
aim to establish similar systems for safety management. To prevent unsafe conditions
and behavior that may lead to accidents, all workers share details about their work
and work areas before performing their duties. This works as a cautionary exercise,providing countermeasures against possible accidents and mistakes that can occur
during operation. Moreover, each work group has an appointed leader who oversees
the entire worksite to minimize risk factors that could lead to accidents or mistakes.
Additionally, to further raise workers’ safety awareness, a safety manager visits theworkplace to demonstrate how to exercise caution against risk factors.
When we deliver a product to a new plant or production line, we check its facilities,
equipment and safety standards against our Group regulations in advance. This way,
we can identify any ambiguities with regard to safety and solve problems, if any, toimprove the environment for safe operation.
As a result of these continued safety activities in and outside of Japan, the numberof accidents in fiscal year 2015 with the potential for severe injury dropped by about
40% from fiscal year 2014. The overall rate for workplace accidents, including mild
injuries, decreased from 110 in fiscal year 2014 to 80 this fiscal year (a decrease of28%), when including data of the four companies acquired2 in fiscal year 2013. The
TCIR3 value also declined to 0.24 from 0.37.
OHSMS: Occupational Health and Safety Management System. A management system to reduce thepotential for work-related accidents and improve the level of safety and health management by defining
a series of PDCA (plan, do, check, act) processes under the safety and health policy set by senior
management.
2
Four companies acquired: TEL Magnetic Solutions Ltd., TEL Solar AG, TEL FSI, Inc., TEL NEXX, Inc.
3
TCIR: Total Case Incident Rate. The number of workplace accidents (Occupational Safety and HealthAdministration standard) per 200,000 hours worked.
1

The TEL Group carries out accident
prevention activities on an ongoing basis to
reduce the number of accidents. As a result,the occurrence rate of injuries from accidents
during work—as indicated by the TCIR
value—has remained at a world-class safetylevel of less than 0.5 since 2005. In fiscal year
2015, we achieved a TCIR value of 0.24.

Occurrence rate of workplace accidents(FY2011 level as 100)
100 100

110

100
82
50

80
50
31
19

2011

2012

2013

2014

Safety Education
To improve individual employees’ awareness of safety, the TEL Group provides webbased education. In fiscal year 2015, we provided update advanced safety education
to all workers involved with our Group. The aim was to renew their awareness of work
rules, which were established with reference to past accidents, as well as rules forwearing protective gear.
Additionally, to eliminate accidents, we provide five web-based education courses4
at our offices and plants around the world, along with risk prediction training. The latteris designed to prevent accidents by predicting potential risks in the workplace and has
proved statistically effective. In fiscal year 2015, about 1,500 persons participated in the
training and raised their awareness of accident prevention.
The TEL Group also requires all new hires to take safety education whileproviding safety information to its suppliers as part of its thorough efforts for
accident prevention.
4

Web-based education courses focusing on five themes: being caught in a driving unit, ergonomics(backache), pointing and calling, exposure to liquid chemicals, and work safety rules.

19

2015

Workplace accidents
Accidents with the potential for severe injury

Safety education (risk prediction training)(FY)Quality
The Tokyo Electron Group provides high-quality products and services. We include the entire process fromdevelopment through manufacturing, installation and maintenance. We also focus on the quality of theentire customer experience. For us, the satisfaction and trust of our customers is proof of our quality.

Quality Promotion Framework

Quality Promotion Framework

To promote Group-wide quality activities, the TEL Group has established aquality promotion framework headed by the President and, below him, the Senior
Executive Vice President, who is also General Manger (GM) of the Development andManufacturing Division. Important quality issues and common issues are addressed
through mutual cooperation between the presidents of the Group companies and
the Quality GM. For cross-divisional quality promotion activities, the TEL Grouphas established five working groups, namely, the Technology Control Committee,
Production GM Committee, Material GM Committee, Quality GM Committee, andSoftware GM Committee. These committees cooperate with each other for efficientand stable quality control, with the goal of improving customer satisfaction.
The TEL Group has also promoted the acquisition of ISO 9001 quality management
system standard certification. Since 1997, 10 locations, primarily manufacturing
companies, have obtained the certification and plan to maintain it.

Initiatives to Improve Quality
Quality Management and Quality Control Examination(Certification) (QM/QC Examination)
To promote high-quality manufacturing according to customer needs, the TEL Group
carries out cross-sectional quality improvement activities on an ongoing basis not
only at directly involved departments such as development and design but also at
departments concerned with planning/sales, administration and services. As part ofthese efforts, we encourage Group employees to take the QM/QC Examination andget certified. Administered by the Japanese Standards Association and the Union ofJapanese Scientists and Engineers, this examination is a major quality certification test,with the number of holders in Japan totaling more than 278,000 (as of March 2015).
The certification enables employees to improve their awareness and skills in the areaof quality control, improve the quality of their work, and provide customers with highquality products. With this initiative, which started in fiscal year 2012, the number ofcertified employees has increased each year to reach a cumulative total of 880 as ofthe end of fiscal year 2015.

Representative
Director,
President & CEO
General Manager,
Development &Manufacturing
Division

Secretariat(Quality
Promotion
Department)

Presidents ofGroup companies
Heads of GM
committees

SoftwareTechnology Production Material
Quality
GM
GM
GM
ControlGM
Committee Committee Committee Committee Committee* Working group members
DesignParts
Standardization Standardization consist of officers andWorking
Working
general managers fromGroup*
Group*
plants and offices in Japan.

QM/QC Certification Holders(Persons)

737

880

427

162

2012

2013

2014

2015

(FY)

Conceptual Image of Understanding
Customer Needs
Customer needs

For customer satisfaction

Requests

20

Evaluation by
department

満足
Understanding
customer
needs
不満足
案件

Planning/
sales

mp

I

To incorporate customers’ opinions and provide products and services of higher
quality, we have conducted a customer satisfaction survey since 2003. In fiscal year
2015, we went one step further and established a mechanism to help the entire TELGroup incorporate customer opinions in order to provide products and services
that satisfy customer needs in a more effective manner. In an effort to accurately
understand customer opinions so that we can reflect them in our products andservices, we include in the written survey specific questions that help us design
improvement activities at a working level.
We share the results of the survey across the Group and clarify departmentsin charge before we carry out the formulation, execution, and follow-up of an
improvement plan. We carry out these PDCA activities on a continual basis so as todeliver even greater value to our customers.
As a result of these quality improvement activities aimed at better customer
satisfaction, quality costs (that is, complaint-related costs) have decreased for threeconsecutive years since fiscal year 2012. In each of the recent two years, the costs
decreased by 15% on a year-over-year basis.

Expectations

rov
i

ng q

ualityService
Development/
designPurchase/production

through continuous impro

nt
ve m eeffo

rt sProcurement
The high-value manufacturing that the Tokyo Electron Group strives for is based on the functions of
all materials and components that make up the products and the pursuit of high quality. We valuecommunications with suppliers and seek to grow manufacturing on a global scale with our suppliers basedon ongoing trusting relationships.

Supply Chain Communication

Conflict Minerals❷ Support recovery
efforts and takeprocurement measures(Procurement BDR2)❸ Establish BCP systemwith suppliers❹ Build relationship with suppliers
based on mutual trust andrespect
1

2

Speed & accuracy❶ Investigate damageand evaluate impact(Procurement BER1)

Minimize risks

Post-disaster measures

Procurement BCP scheme

Together with suppliers, the TEL Group has prepared a disaster protocol on an ongoingbasis. A database of the location map of procurement sources plays a major role
when crises arise. Every year we update the database so that we can promptly identify
damage and quickly take steps for recovery following a disaster. In fiscal year 2015,
we updated about 14,000 locations and checked on the impact caused by the threedisaster cases that occurred during the year.
We have also conducted an annual survey on BCP system readiness to reducerisk in business continuity with our suppliers. In fiscal year 2015, we conducted a
procurement BCP survey with key suppliers, who together account for more than 80%
of our procurement by amount, and identified that 41% of them had improved from theprevious year. We provided the suppliers with feedback on survey results for future
improvement activities.

Initiatives for procurement BCP

Pre-disastermeasures

Procurement BCP

TEL Partners Day held in fiscal year 2015

Procurement BCP

In addition to daily communications, the TEL Group holds the Production Update
Briefing and TEL Partners Day as platforms for enhancing relationships with suppliers.
At these events, we introduce CSR initiatives and honor outstanding suppliers. In our
procurement policy, meanwhile, we call for the cooperation of our suppliers regarding
compliance with labor-related laws, such as prohibitions against child labor and forcedlabor, and respect for fundamental human rights. This policy is published on our website.
Our specific activities include regularly conducting Supplier Total Quality
Assessment (STQA) audits with critical suppliers. In fiscal year 2015, we conducted our
second supplier CSR survey, with key suppliers accounting for more than 80% of our
procurement by amount. The survey, which conforms with the EICC® Code of Conduct,
identified improvements made in 25% of suppliers’ CSR activities compared to theprevious year. We provided the suppliers with feedback on the survey results to maketwo-way improvement efforts.
In June 2015, the TEL Group joined the EICC® to continue to promote EICC®compliant supply chain CSR.

BER: Business Emergency Response. First response
taken immediately after a disaster.
BDR: Business Disaster Recovery. Recovery
effort that is made according to the findings of thedamage investigation.

Conflict mineral type

The TEL Group plans to eliminate the use of raw materials and components containing
conflict minerals from the Democratic Republic of the Congo, or its neighboring
countries, which form a source of funds for armed groups and give rise to human rights
violations and poor working conditions.
In fiscal year 2015, we conducted a survey on countries of origin and smelters ofconflict minerals in CFSI3 format. The survey identified 117 CFSP4-certified smelters related
to products that we procure. We will conduct the survey every year to make joint efforts
with our suppliers to improve the response rate, survey method, and data accuracy.
CFSI: Conflict-Free Sourcing Initiative. Founded by members of the EICC® and GeSI (Global e-Sustainability
Initiative) to inspect and certify conflict material smelters to see whether or not they are being used for the
benefit of the Democratic Republic of the Congo or its neighboring countries, which provide funds for armed
groups.
4
CFSP: Conflict-Free Smelter Program. The CFSP is promoted and led by the CFSI.
3

21

Conflict
mineral name

Usage example

Tantalum

Electrolytic capacitor, IC, andrefractory metal

Tin

Solder, plating, and reducing agentsTungsten

Cemented carbide and electronic
components and mechanisms

GoldIC, plating and connectors

Environment
The TEL Group aims to solve environmental issues through our leading-edge technology and services underslogan 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 that both directly and indirectly contribute to the protection and conservation of the environment.

CO2 Emissions across the Value Chain
With the recent trend among businesses toward measuring and controlling not only their direct greenhouse gas (GHG) emissions but also
CO2 emissions across their value chains (linkages for providing products and services to customers; chains of activities such as procurement,
development, production, sales and services), the TEL Group measures these emissions in compliance with international GHG accounting
standards, the GHG Protocol.

Scope 3 downstream
Not from the TEL Group

3,191 kilotons
Scope 3 upstream
Not from the TEL Group

Scopes 1 & 2
Own emissions

377 kilotons 160 kilotons
End-of-life
treatmentof sold products

1 kilotons

EmployeecommutingDirect emissions
from fuel &gas use15 kilotons

Scope 1

Purchased
goods & services

10 kilotons

Business travel

7 kilotons

304 kilotons

Indirect emissions
from electricity use& heat purchase

Capital goods
Waste generated inoperations

33 kilotons
Fuel- &
energy-related Transportation &distribution
activities(upstream)

12 kilotons

Scope 2

1 kilotons

150 kilotons

Use of sold products

3,122 kilotons

Transportation &distribution(downstream)

68 kilotons

5 kilotons

The GHG Protocol categorizes GHG emissions across the value chains into three scopes:
Scope 1: Direct GHG emissions from use of fuel and gas owned or controlled by the company
Scope 2: Indirect GHG emissions from use of electricity, steam and heat purchased by the company
Scope 3: E missions from corporate value chains excluding scopes 1 and 2, such as product transportation, employee business travel,and major outsourced production processes
Scope 3 is divided into upstream activities, which include emissions associated with purchased or procured products and services, anddownstream activities, which include emissions associated with sold products and services.

The TEL Group’s direct emissions associated with fuel and gas use (scope 1) and emissions from electricity use and heat purchase (scope 2)
add up to 160 kilotons, or about 4% of the total. Indirect emissions (scope 3), which are not from the TEL Group, total 3,568 kilotons, or about
96%. In particular, use of sold products, which is one of the 10 categories related to the TEL Group, makes up 84% at 3,122 kilotons. Therefore,
the TEL Group is stepping up efforts to reduce CO2 emissions, including reducing the energy consumption of equipment and peripheraldevices, ensuring the effective operation of equipment systems, and promoting the energy-saving operation of customers’ factories, and willcontinue its initiatives to reduce environmental impacts for the development of a sustainable society.

22Environment

Environmental Management
EHS promotion framework

Environmental activity promotion framework
In order to promote environmental activities across the Group, Tokyo Electron has
established the EHS Promotion Center at its headquarters. Executives of Group
companies appoint members of the Product Environment Value Meeting, the ProductEnvironment Compliance Meeting, and the Operation Environment Value Meeting, all ofwhich carry out activities to achieve environmental goals. Meanwhile, the biannual EHS
Meeting checks the progress toward the environmental goals for continued improvement.
Since 1997, the TEL Group has been working to obtain certification for the
ISO 14001 environmental management standard, primarily at its manufacturingsubsidiaries. Currently, eight locations are certified and we will continue to acquire andmaintain the certification.
As a result of checking and maintaining compliance with environmental laws, emission
standards, and other voluntary standards, the TEL Group was not involved in any
environmental incidents or accidents, was not found to be in violation of any environmental
law, and was not subject to any related legal proceedings in fiscal year 2015.

Environmental education
Recognizing the importance of complying with environmental laws and regulations andreducing environmental burdens, we established an education program for workinglevel managerial personnel in fiscal year 2015. We held lectures on the importance of
manufacturing environmentally friendly products—explaining related environmental
laws and regulations, statutory procedures, and penalties contained in them—and how
to save energy when using products, as well as how to save resources and recycle.
Three hundred and thirty people took the course. In fiscal year 2016, we will launch theprogram at seven locations outside Japan and provide web-based education in orderto reach more participants.

Biodiversity
Business activities of the TEL Group do impact biodiversity while also benefitting fromit. Based on our recognition of this, we are making efforts to conserve biodiversity andimprove the related framework.
The goal of biodiversity conservation activities in fiscal year 2015 was to holdecosystem tours at least twice at plants and offices in Japan. The Yamanashi Plant held alecture on biomimicry, in which participants observed how the owl’s powder down repels
water and learned about the various properties of spider silk. Observing nature in this way
provided participants with opportunities to find helpful hints for their own daily operations.
CO2 emissions from these programs and the related travel were carbon offset1.
We will continue activities for biodiversity conservation.
1

Representative Director,
President & CEO
General Manager,
Development &Manufacturing Division
EHS Meeting
Equipment
SafetyPromotion
Meeting

Work
SafetyPromotion
Meeting

Number of participants in designfor the environment program

330

persons

The design for the environment program
was established to provide customers
with products that are compliant with laws
and regulations and designed to reduce
environmental impact. In fiscal year 2015,
330 persons participated in the program.

Carbon offset: The making of a monetary investment in an activity elsewhere that abates greenhouse gas
emissions to compensate in whole or in part for GHG emissions from one’s own activities.

Ecosystem tour

Topics <Environmental Debriefing>

Since 2009, the Tohoku Plant has invited its neighbors (representatives of community
associations) as well as representatives of the local business, government andacademic communities to its Environmental Debriefing for the Local Community to
exchange opinions and deepen mutual understanding. The environmental and social
commitment is explained, goals and achievements of the TEL Group are reported anda tour of plant facilities and production lines is provided. As of fiscal year 2015, a total of
137 people have participated in the debriefings.

23

Product
Product
Operation
Environment Environment Environment
Value
Compliance
Value
Meeting
Meeting
MeetingEnvironment

Product Initiatives
Initiatives to prevent global warming

Major energy-saving models

Based on life cycle assessment, the TEL Group is lowering the energy consumptionof its products to reduce the environmental impact of product use at the premises of
its customers. In fiscal year 2014, the TEL Group achieved a 50% reduction in energy
consumption by its major products (per wafer; compared to fiscal year 2008). For totalenergy assessment, the TEL Group assessed electricity, water, nitrogen, dry air, andexhaust in electricity equivalents (compliant with SEMI S23 guidelines). With a reductionin the energy consumption of products, the percentage of energy-saving models1 as aproportion of total sales increased to 72% in fiscal year 2015.
In this fiscal year, the TEL Group set the goal of reducing energy and pure water
consumption by 10% from the fiscal year 2014 level by fiscal year 2019. To that end,
we will promote environmentally friendly manufacturing with the development of newtechnologies for further reduction of energy, water and chemical substances as well aswith proactive measures against greenhouse gases.
1

Thermalprocessing system
TELINDYTM PE

Plasma etch system
Tactras TM Vigus TM

Coater/developers
CLEAN TRACKTM
LITHIUS ProTM Z

Based on in-house standards

Average energy consumption of products and proportion ofenergy-saving models among total sales

Single wafer metallization system
Trias e +TM EX -IITM TiN

(%)

100.0

93.2
68.7

72.0
60.2

27.0

55.7

38.0

52.0

Single wafer cleaning system
CELLESTATM -i

52.0

44.7

40.2

40.2

2014

2015 (FY)

7.0
2008

2009

2010

2011

2012

2013

Gas chemical etch system
Certas LEAGATM

Average energy consumption (per wafer; FY2008 level as 100%)
Proportion of energy-saving models among total sales (data disclosure started in FY2010)
Scrubber system
NS300Z

Initiatives to reduce environmental impact of products
Equipment category

Major reduction

Product

Major initiative

TELINDY TM PE

Introducing an energysaving heater◎

Plasma etch system

TactrasTM VigusTM

Improving high-frequency
power efficiency
Operating sleeping modeof a chiller

◎

○

○

○

○

Coater/developers

CLEAN TRACK TM
LITHIUS ProTM Z

Improving productivity
with high throughput

○

○

○

○

○

Triase +TM EX-IITM
TiN

Lowering temperatureprocess
Improving productivity
with high throughput

◎

○

○

Single wafer plasma
treatment system

Triase +TM SPAi

Not using a chiller
Optimizing the exhaustsystem◎Single wafer cleaningsystemCELLESTATM -i

Improving productivity
with high throughput○

Gas chemical etchsystemCertas LEAGATM

Improving productivity
with high throughput◎

Scrubber system

NS300Z

Improving productivity
with high throughput

PrecioTM series

Reducing dry air with dew
point monitoring

Thermal processing
systemSingle wafer
metallization system

Wafer prober

Electricity Water○

N2

Dry air Exhaust○○

Wafer prober
PrecioTM series○

Chamber parts

○
○

○

◎

○

Chamber overview○

Plasma electrode
Wafer

○
○

◎

Fine ceramic
Fine ceramic
deteriorated with use

Initiatives to reduce waste
The TEL Group is making proactive efforts to reduce waste generated by its products.
Etch systems require periodic replacements of thermal or other parts inside thechamber, as they deteriorate due to continuous plasma processing. The TEL Grouphas made it possible to use deteriorated chamber parts repeatedly by re-coating themwith fine ceramic, which minimizes waste generation and reduces costs.
24

Fine ceramic is
re-coatedEnvironment

JAMP AIS survey with suppliers in Japan started in

Initiatives for chemicals contained in products
For the manufacturing of environmentally friendly products, the TEL Group has built asystem for managing chemical substances contained in products. We collect information
about the laws and regulations of every country at an early stage to take appropriate
actions for legal compliance. For example, when any substance of very high concern(SVHC) is present in our products at 0.1% or higher, we submit the information as
required by the REACH1 regulation. We also provide chemical safety data sheets((M)SDS) in accordance with the GHS2 regulations.
In addition to legal compliance, we also set our own standards to reduce chemical
substances. Although TEL Group products are not subject to the EU RoHS3 Directive,
we have implemented measures to manufacture equipment that is at least 98.5%
composed of substances that meet the directive since 2006. As a result, nearly all ofour products now comply with the directive. Furthermore, to become more effectively
compliant with regulations, including the EU RoHS Directive, REACH, and the China
RoHS, we started a survey with our suppliers in Japan on chemicals contained in
products based on the JAMP AIS4 in April 2015.
We will continue to promptly identify and appropriately respond to all laws andregulations in every country, thereby promoting our global efforts to reduce harmful
chemical substances.

April 2015

REACH: Registration, Evaluation, Authorisation and Restriction of Chemicals. A regulation pertaining to theregistration, evaluation, authorization and restriction of chemicals.
2
GHS: Globally Harmonized System of Classification and Labelling of Chemicals.
3
RoHS: Restriction of the use of certain Hazardous Substances in electrical and electronic equipment. The
RoHS Directive restricts the presence of lead, mercury, hexavalent chromium, polybrominated biphenyls(PBB), polybrominated diphenyl ethers (PBDE), and cadmium in electrical and electronic products exported
to Europe.
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.
1

Logistics initiatives
To reduce environmental impacts caused by the transportation of products, the TELGroup is promoting modal shift5 for domestic and overseas transport and adopting
packaging methods with a smaller environmental footprint. In fiscal year 2015, we achieved
reduction in both CO2 emissions and costs by improving the load factor of trucks with
the introduction of shelved trolleys. The trolleys have been used for the shipment of FPD
production equipment, to the shipping of semiconductor production equipment.
In fiscal year 2015, CO2 emissions associated with domestic and international
product logistics increased to 73 kilotons, up about 35% from fiscal year 2014. The
share of marine transportation used for exports decreased by 11 points from fiscal year
2014 to 31%. This is because shipment of semiconductor production equipment by air
increased from the fiscal year 2014 level.
We are committed to continuing efforts to reduce environmental impacts.
5Modal shift: A shift in the mode of transportation. Specifically, switching from conventional freighttransportation by truck or aircraft to means that have a lower impact on the environment, such as marine
and rail.

Topics <Global Cooperation with Industrial Organizations>

Since the 1990s, the TEL Group has been proactive in its global cooperation withindustrial organizations in the areas of EHS and CSR. At SEMI6, we serve as a member ofa meeting that manages EHS activities and participate in commissions on environmental
and safety laws and regulations to introduce energy-saving, resource-saving, and safety
activities and promote standardization. At SEMICON Japan, an industrial exhibition,
held in December 2014, we organized a sustainable forum as a central coordinator andintroduced Japanese companies’ technologies and products related to environmental
safety to representatives of SEMI Taiwan.
6

SEMI: A global industry association of companies that provide production equipment, materials andservices for semiconductors, flat panel displays (FPDs), nano technology, micro-electromechanical systems(MEMS), photovoltaic power generation, and other related technologies.

25

CO2 emissions from logistics and the
proportion of marine transportation(Thousand tons)

42.2

37.8
32.0
70

4

66

2011

31.0

25.9
66

73
60

3

63

2012

2

54

68

58

2013

International logistics

5

3
51

2014

2015

Domestic logistics

Proportion of marine transportation amonginternational logistics (%)(FY)

Environment

Electricity consumption(Million kWh)

Plant and Office Initiatives

230.1

223.6

223.0

221.6

208.7

Initiatives to prevent global warming
At the TEL Group, each plant and office sets the goal of reducing energy consumption
by at least 1% year on year based on a metric of its own choosing. Initiatives to achieve
the goals include energy-saving operation of clean rooms, optimum temperature
settings for office cooling and heating, and introduction of equipment with leading-edgeenergy-saving efficiency.
Photovoltaic power generation systems have been adopted at some plants andoffices in and outside Japan and the renewable energy they generated in fiscal year
2015 totaled 4,559 MWh, enough to power about 1,260 homes1. Meanwhile, Tokyo
Electron U.S. Holdings, Inc., which has purchased green electricity since 2001,
purchased 2,405 MWh of green electricity in fiscal year 2015.
With these efforts, 11 of the 12 TEL plants in and outside Japan that set their goals
achieved them in fiscal year 2015. Group-wide power consumption in fiscal year 2015
was 274 GWh, down 7% year on year, and CO2 emissions from energy consumption2
was 160 kilotons, up about 2% year on year. Using the same emission factor forelectricity consumption for fiscal year 2011, CO2 emissions per unit of energy consumed
in Japan in fiscal year 2015 decreased by 9.5% from fiscal year 2011.
Based on the assumption that the electricity consumption of one home is 3,600 kWh/year
For the emission factor for electricity consumption in Japan in fiscal year 2015, we used adjusted emission
factors for individual electric power providers. For the emission factor for electricity consumption overseas,
we used estimated factors calculated by the Federation of Electric Power Companies of Japan based onvalues published by the International Energy Agency (IEA).

Example of initiatives
The Koshi Plant, one of our manufacturing sites, uses a turbo refrigerator to coolwater and a heat recovery chiller. In fiscal year 2015, the plant replaced these typesof heat source equipment with high energy consumption with equipment with highenergy efficiency, consequently halving its energy consumption. It is estimated that the
replacement cost will be recovered within five years.
●

2012

Overseas

2013

2014

2015 (FY)

CO2 emissions from energy consumption(Tons)

117,396

120,913

125,92136,31734,51387,124

84,84723,316

15,063

12,046
2011

2012

Japan

Overseas

2013

2014

2015 (FY)* CO2 emissions in fiscal year 2012 totaled 87,124 tons
minus a 50,000-ton reduction brought about throughthe use of a domestic clean development mechanism(the mechanism for CO2 emissions reduction that allows
small and medium-sized businesses to receive funding
and technology from large businesses and trade thereduced amount of emissions as emission credits)

CO2 emissions in Japan with the sameemission factor for electricity
consumption for fiscal year 2011
(Tons)

84,847

82,13781,067

81,592

76,791

2011

2012

2013

2014

2015 (FY)

1,058

1,043

(Thousand m3)

Fluoride

pH

Water Pollution Control Act

8.0 mg/L or lower

5.8‒8.6

Yamanashi Prefecture Pollution Control Ordinance

1.0 mg/L or lower

5.8‒8.6

Hosaka Plant’s Own Standard

0.8 mg/L or lower

6.0‒8.4

1,078

315

199

300

297

327
613

531

506

466

471

416

296

64 30170 312104 290

300

2012

2011

2013

2014

503

2015

Industrial water in Japan

Tap water in Japan

Groundwater in Japan

Overseas use

Exhaust fromthe unit

Propanegas
OxygenExhaust fromprocessing
Water

(FY)

Usable water(recycled water)

Filtration/RO
facilities
Recovery
Gas after
combustion

Circulating water tankCombustion-type
detoxifying apparatus

Drain tank
Wastewater(below thestandard)

Wastewater Fluorine ion/
pH check
Combustion-type
detoxifying wastewater
recovery system

Effluent treatment facilities

26

Wastewater from the facilities

Example of initiatives
Combustion-type detoxifying apparatuses that render exhaust from semiconductor
production equipment harmless use a large amount of water. The Hosaka Plant, whichused to treat all such water as effluent, put in place a mechanism to separate usable waterand return it to the apparatuses for reuse, reducing water consumption by 70%. Wastewater
above TEL’s own effluent standard1, which is stricter than statutory standards, is properly
processed at effluent treatment facilities before being discharged to rivers. It is estimatedthat the renovation cost will be recovered within one and a half years.
●

1,122

1,026

Wastewater (above the standard)

The TEL Group has set a goal of keeping water consumption at the same level or belowthat of fiscal year 2012 based on the basic metric set by each plant. In fiscal year 2015,
we achieved 10 out of the 15 goals set at our plants in Japan and overseas. Continued
efforts to achieve these goals include installing water-saving devices, watering grasswith rainwater, and ensuring intermittent operation of cafeteria faucets. Consequently,
we reduced water consumption by approximately 1% year on year to 1,043,000 m3
in Japan. Outside Japan, water consumption totaled 503,000 m3 in fiscal year 2015,
down 18% from 613,000 m3 in fiscal year 2014, when water consumption at four newly
acquired companies was added.

Own standard

65.6

Water consumption

Initiatives to reduce water consumption

1

2011

Japan

Scrubber

2

27.8

20.5

Combustion unit

1

72.2
40.5

Environment

Initiatives to reduce waste
The TEL Group is reducing waste, which includes collecting waste by type andchanging production processes to those that do not generate waste, while recycling
as much generated waste as possible and disposing of the remaining non-recyclable
waste in an appropriate manner. In fiscal year 2015, the amount of incinerated andlandfill waste generated by the TEL Group was 94 tons, down 45% from fiscal year
2014. Having defined a plant or office where incinerated and landfill waste makes up
less than 2% of its total waste as a zero emission plant/office, the TEL Group achieved
zero emissions at all Group plants in Japan in fiscal year 2015. With these initiatives, therecycling rate1 at plants in Japan in fiscal year 2015 was 98.9%, achieving the goal of
maintaining a recycling rate of 97% or more in Japan for nine consecutive years since
fiscal year 2007. Also, in fiscal year 2015, the recycling rate at TEL Group plants andoffices outside Japan improved from the previous year to 88.2%.
1

98.1

97.4

97.3

98.0

98.9

Target: Maintain recycling
rate of 97% or more

331
245

215

172
94

2011

2012

2013

2014

2015 (FY)

Incineration and landfill (Tons)

Recycling rate: Recycled amount / Amount of waste generated × 100

Volume of PRTR Class I designatedchemical substances handled (Japan)

Management of chemical substances(Kg)

At the TEL Group, we use chemical substances mainly in the development andmanufacturing phases of our products. We consistently monitor and manage the use
and discharge amounts of chemical substances regulated under the Japanese PRTR2
law. Additionally, whenever we introduce a new chemical substance or change how
an existing substance is used, we check for environmental, health and safety risks,
and take the necessary measures before adopting the new substance or method. We
also make sure to properly dispose of hazardous substances after use through either
specialist waste disposal contractors or using our in-house processing equipment.
2

Recycling rate and generation ofincinerated and landfill waste (Japan)

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.

13,70914,361
1,617

169

11,732
5,071

12,6652,059 10,781
1,035

2,031

4,541

3,787

8,469

2,408

6,462

7,338

8,203
5,914

2011

4,144

2012

2013

2014

2015

(FY)

Hydrogen fluoride and its water-soluble salts
Methylnaphthalene
Other

Green Procurement
The TEL Group, in cooperation with our suppliers, is promoting initiatives to reduce
its environmental impact. We developed the Guideline for Green Procurement in 2001
and revised it in 2012. In order to monitor and reduce environmental impacts of our
suppliers, we have conducted green procurement surveys of our key suppliers since
fiscal year 2014. Our questionnaire survey in fiscal year 2015 focused on the threeareas of environmental initiatives at plants and offices, environmental compliance of
products, and environmental initiatives for products. We aggregated the survey data tounderstand the various situations across our supply chains and analyzed the outcomeof our efforts to reduce environmental impacts. We also evaluated the survey findings
on a six-point scale, finding improvement in 46% of the suppliers, and provided the
suppliers with feedback accordingly. Based on these results, we will continue to workwith our suppliers on environmental activities.

Topics <Recognized as a Green Choice patron by Austin Energy>

In April 2015, the Tokyo Electron US Holdings, Inc. (TEH) Austin site was recognizedby Austin Energy as a Green Choice Program patron for purchasing wind-generated
renewable energy that accounted for 20% of the total electricity consumption at TEH.
In the photo, Austin Mayor, Steve Adler (right) presents the recognition plaque to Tom
Campbell, Director of Support Services for TEH.

27

Environmental impact by suppliers(Fiscal year 2015 survey results)

Use/emissions
CO2 emissions

303 kilotons

Water consumption

3,029,000 m3

Total waste generated

42 kilotons

Recycled waste

22 kilotons

Social Contribution
The TEL Group is proactively working on the development of a sustainable society and the growth of its
business activities by contributing to society based on its Corporate Philosophy.

About Social Contribution
Cooperation between businesses and civil society is indispensable for the development of a society where everyone can live a better life andwork in a healthy way. The TEL Group sets the environment, education, health and human services, and culture as the four areas of focus in
our community investment for development of society.

Examples of Social Contribution Activities
Environment

Education■ The forest of Tokyo Electron■ Nikkei Education Challenge

Tokyo Electron is engaging in local tree-planting and afforestation
activities with its employees and their families. The activities aim
to pass on beautiful nature to future generations, and to leave abetter global environment. In Hokuto City, Yamanashi Prefecture,
we have planted 3,000 trees and maintained the forest throughweeding over the last seven years.
Meanwhile, a TEL Group company in Oshu City, Iwate
Prefecture has been planting oak trees (Quercus serrata) andcherry trees nearby its premises over the last five years as partof a tree-planting
activity organizedunder the Corporate
Afforestation Program.
We help preserve andnurture nature in
the communities.

In the fiscal year under review, as in the previous year, Tokyo
Electron supported the Nikkei Education Challenge sponsoredby Nikkei Inc. Intended to provide high school students with aninside perspective into business fields, the event consists ofpresentations given by business leaders from diverse industries.
The leaders share their experience and their achievements, aswell as stories of the difficulties and failures they had to overcomeon the road to success.
In fiscal year 2015, Tokyo Electron sent an employee from its
development section, who provided the audience with tips on
how to make it asa researcher. Manyof the participatinghigh school students
commented that thepresentation stirred
their interest in thesemiconductor industry.

Health/Human Services

Culture■ Meals on Wheels and More■ solaé art gallery (a project for supporting young artists)

Tokyo Electron U.S. Holdings,
Inc. (TEH) sponsors the Meals on
Wheels and More program, which
delivers meals to elderly people
with mobility issues. TEH has
been committed to the activity for
years. Serving as volunteers, TEH
employees are volunteering todeliver nutritious meals to elderly
people during lunchtime from
Monday to Wednesday every week.

Under the “solaé art
gallery project,” Tokyo
Electron headquarters
cafeteria “solaé”
provides young
emerging artists witha venue to show theirwork free of charge.
Every three months,
a new artist working on themes closely related to TEL’s business,such as “technology” and “global,” is invited to show his or her
work. The project also organizes a reception event for eachexhibition, which generally attracts nearly 100 attendees from inand outside of TEL. TEL employees benefit from the exposure toand inspiration provided by these creative outputs and the diverse
values they represent.

You can also read about Tokyo Electron’s social contribution activities on the TEL website:[http://www.tel.com/environment/corp_citizenship/index.htm]

28

Social Contribution

Taking on a challenge to create an open
intellectual community where people gettogether to study and create

Tohoku University’s
Tohoku Forum for Creativity
Tokyo Electron is proactively supporting the Tohoku
Forum for Creativity project.

The Tohoku Forum for Creativity (TFC) is a program that brings Nobel laureates and otherworld-leading professors together with young researchers and students to carry out
advanced research for solving universal social issues. Since the inauguration of the TFC,
TEL has provided comprehensive support for this project, which embodies our aspirations
to nurture the next generation of leaders. It also plays an important role in assisting in the
promotion and revitalization of the Tohoku region, where our manufacturing base is located.
In the 2014 school year, the TFC offered three programs, namely, “A Health
Informatics Infrastructure for a New Era,” “Challenges for Big Data in our Society,” and“Future Strategies for Disaster Risk Reduction.” Nearly 1,000 students and researchers
participated. In April 2015, the TFC organized an introductory event for the school year,
titled “Spring School.” Leading researchers, including Prof. Gerard ‘t Hooft of Utrecht
University in the Netherlands, who was awarded the Nobel Prize in Physics, participated in
the five-day program, along with a total of 60 students.
The TOKYO ELECTRON House of Creativity, a visitor research institute and central
facility of the program, was completed in May of the same year.
In the 2015 school year, the TFC is planning four thematic programs titled, “Frontiersof Brain Science,” “The Effects of Technological Changes on Social Mobility and Income
Distribution,” “Fundamental Problems in Quantum Physics,” and “Spintronics,” for which
Tokyo Electron will provide continued support.
[Related link: http://www.tfc.tohoku.ac.jp/ (External site)

External Evaluation in fiscal year 2015 (main awards received)
Category
Business

Customer

Equipment/production

Environment/safety

Communication/societyAwards received* Awards received in fiscal year 2016

SponsorIn appreciation of your continued contribution 2014

Semiconductor Equipment and Materials International (SEMI)

Top 100 Global Innovators 2014

Thomson Reuters Corporation2013 PREFERRED QUALITY SUPPLIER AWARD (PQS award)Intel Corporation

Spotlight Supplier Award

GLOBALFOUNDRIES, Inc.

Best Partner Award

Sony Semiconductor Corporation2014 Partner Award

Fuji Electric Co., Ltd.

Best Partner Award, Good Partner Award, Partnership AwardTOSHIBA Semiconductor & Storage Products Company

Certificate of Appreciation

Powerchip Technology Corporation

Appreciation Award

Taiwan Semiconductor Manufacturing Co., Ltd. (TSMC)

Excellent Performance Award

Taiwan Semiconductor Manufacturing Co., Ltd. (TSMC)

Semiconductor of the Year Grand Prize in the semiconductor
manufacturing equipment category (CELLESTATM-i MD)

Sangyo Times, Inc. (Electronic Device Industry News)

Minnesota Safety Council Governor’s Safety Award (Meritorious
Achievement)

Minnesota Safety Council

Green Choice Program Patron*

Austin Energy

SESHA President’s Award

Semiconductor Environmental Safety and Health Association(SESHA)

Certificate of Appreciation (of support for areas affected by theGreat East Japan Earthquake)

Minister of Health, Labour and Welfare

Certificate of Appreciation (of support for areas affected by theGreat East Japan Earthquake)

Sendai City Social Welfare Council

Certificate of Appreciation (of support for a community projectfor global human resource development)

Independent Administrative Institution Japan Student
Services Organization

FTSE4 Good Global Index

FTSE

2014 Internet IR Commendation Award

Daiwa Investor Relations Co., Ltd.

29

Comments from a Third-Party Expert
employee healthcare, TEL has issued a health declaration andlaunched various initiatives to promote health. We hope TEL willcontinue to improve its health activities and to report the positiveeffects on its management.

I present the following comments as a third-party on theEnvironmental and Social Report 2015 (“the Report”) of Tokyo
Electron Limited (TEL), taking into account explanations from TEL
representatives in charge of the EHS and CSR on environmental
and social initiatives, as well as my observations concerning lastyear’s report.

Environmental initiatives in the value chain
TEL has aimed to solve environmental issues through its businessactivities. As part of its efforts to prevent global warming, in fiscal
year 2014, TEL achieved its target of reducing energy consumptionof its major models by 50% from fiscal year 2008. This fiscal
year, TEL set a new goal of reducing energy and pure water
consumption by 10%, from fiscal year 2014 through fiscal year
2019, and launched related initiatives accordingly.
TEL measures and controls both its direct greenhouse gas
emissions and its CO2 emissions throughout the entire value chain.
Since indirect emissions from product use make up 84% of total
emissions, I expect future initiatives from TEL for reducing theseemissions, as well as reports on the progress of the initiatives.
With regard to key suppliers, it is commendable that TEL
has conducted a supplier CSR survey on the labor environment,
safety, environmental measures, and other areas, to help suppliers
improve their business.

Identifying Materiality
Corporate social responsibility activities themselves cannot be agoal. They carry significance when they are performed as part ofa company’s pursuit of its main business goals. Responsibilities
that society requires of businesses vary widely, so it is essential toidentify those that are of particular importance and that should beprioritized by a company. TEL communicated with stakeholders tocomprehensively identify their needs and reported the Materiality(important sustainability issues) and the process for choosing
them. By associating the issues with CSR goals, TEL covered theresults of its CSR activities and details of the goals in the Report.
I recognize that these efforts made TEL’s report on CSR activities
sufficiently convincing, although CSR reports generally tend to be acluster of exhaustive explanations. Since I found that qualitative andquantitative metrics coexisted in the fiscal year 2016 activity goals, I
hope future goal-setting will be more objective and based on figures.

TEL’s Management Policies stated at the beginning of the Report
indicate that TEL aims to enhance its corporate value whilepursuing profit at the same time. Therefore, if the relation between
environmental and social activities and TEL’s corporate value, orthe value itself is explained in figures, all of TEL’s stakeholders,
including shareholders, will have a greater understanding of its CSR
management capabilities.

Initiatives concerning employees
Employee skills development and growth are indispensable for thesustainable growth of businesses. At the same time, it’s importantfor employees to strike a good balance between personal life andwork. In this respect, TEL is offering a wide variety of education
programs for human resource development, while launching worklife balance programs to provide better working conditions. The
Performance Summary at the end of the Report provides detailed
data, such as the percentage and number of employees who tookchildcare leave and childcare support leave, respectively. That
helped me to understand that TEL has effective measures in place
for its employees. In reviewing the data, I also noticed that the useof annual paid leave had not improved much from the previous
year, so I look for future improvement in this regard.
Today, an important social issue for businesses is promoting
health management that emphasizes the maintenance of
employees’ mental and physical health. Effective healthmanagement helps individuals develop their capabilities andmotivation for effective business improvement. With regard to(The preceding third-party comments do not constitute an opinion on the accuracy
or completeness of the information contained in this report.)

Yoshito Nakamura
Certified Public Accountant
Adjunct Instructor of Toyo University
and the Open University of Japan
Auditor of the Supporting Organization of JOCV
Auditor of the Foundation for Accounting
Research in Construction Industry
Auditor of Kawasaki City Council of Social Welfare

Response to the Third-Party Comments
We are deeply grateful to Mr. Nakamura for visiting us and providing us with many ways in which we can improve
our initiatives more effectively. We are especially proud of receiving a favorable evaluation for revisiting the Materiality(important sustainability issues) for the first time and the reporting of the process. In response to suggestions
regarding human resource last year, we further enhanced related quantitative data disclosure. Additionally, after all
the effort we made in working with supply chain management, we were able to report initial progress results, which
we believe allowed us to respond to increasing attention from society in this area.
Suggestions we received this year include setting quantitative goals for CSR activities, verifying the effectsof activities for employees’ mental and physical health care and health promotion, and continuing to report onenvironmental initiatives in the value chain. We recognize these as important issues that we should work on
proactively on a group-wide basis, and we are committed to promoting them.

30

Tatsuya Nagakubo
Corporate Director
Executive Officer, CSR Promotion
Tokyo Electron Limited

Environmental Performance Summary
Fiscal year 2014
Energy consumption(crude oil equivalent)

Energy consumption/
generation

Greenhouse gas
consumption/emissions

58,927 KL
20,432 KL

73,421 KL

In Japan
Outside Japan

54,973 KL
18,448 KL

Power consumption

295,215 MWh

In Japan
Outside Japan

222,976 MWh
72,239 MWh

274,368 MWh

In Japan
Outside Japan

208,753 MWh
65,615 MWh

Gas consumption(crude oil equivalent)

3,877 KLIn Japan
Outside Japan

2,027 KL
1,850 KL

3,501 KLIn Japan
Outside Japan

1,929 KL
1,572 KL

Fuel consumption(crude oil equivalent)

1,160 KLIn Japan
Outside Japan

1,156 KL
4 KL

871 KLIn Japan
Outside Japan

870 KL
1 KL

Power generated by PV power
generation systems

4,724 MWh

In Japan
Outside Japan

4,698 MWh
26 MWh4,559 MWh

In Japan
Outside Japan

4,536 MWh
23 MWhCO 2 emissions from energy
consumption

157,230 tons

In Japan
Outside Japan

120,913 tons
36,317 tons

160,434 tons

In Japan
Outside Japan

125,921 tons
34,513 tons

Scope 1 CO 2 emissions

11,151 tons

In Japan
Outside Japan

7,550 tons
3,601 tons

9,686 tons

In Japan
Outside Japan

6,620 tons
3,066 tons

Scope 2 CO 2 emissions

146,079 tons

In Japan
Outside Japan

113,363 tons
32,716 tons

150,748 tons

In Japan
Outside Japan

119,301 tons
31,447 tons

Non-energy-derived greenhousegas emissions (in Japan)

20,794 tons
2,610 tons

1,501 tons

PFCs

7,416 tons

5,784 tons

SF6

10,755 tons

14,499 tons

CO 2 emissions from logistics

Waste generated

13 tons
In Japan
54,230 tons
Outside Japan

Proportion of marinetransportation among overseas
transportation
Water consumption

Resource consumption

1,670,000 m3

In Japan
Outside Japan

1,058,000 m3
612,000 m3

5,348 tons
68,241 tons
31.0 %

1,546,000 m3

In Japan
Outside Japan

1,043,000 m3
503,000 m3

297,000 m3

327,000 m3

Tap water (in Japan)

471,000 m3

416,000 m3

Industrial water (in Japan)

290,000 m3

300,000 m3

Use of copier paper (in Japan)

116 tons

162 tons

Amount of waste generated

In Japan
9,965 tons
Outside Japan

8,780 tons
1,185 tons

In Japan
10,064 tons
Outside Japan

8,858 tons
1,206 tons

Recycled amount

9,421 tons

In Japan
Outside Japan

8,608 tons
813 tons

9,828 tons

In Japan
Outside Japan

8,764 tons
1,064 tons

544 tons

In Japan
Outside Japan

172 tons
372 tons

236 tons

In Japan
Outside Japan

94 tons
142 tons

12,665 kg

Emissions: Atmospheric release
Transport: Waste
Transport: Sewerage
Consumption

10,781 kg

21 kg

12 kg

8,499 kg

8,254 kg

1 kg

114 kg4,144 kg

2,401 kgNOx emissions

9.7 tons

12 tons

SOx emissions

2.8 tons

2.7 tons

Number of ISO 14001-certified
companies

Other

11 tons
In Japan
73,589 tons
Outside Japan42.2 %

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

Environmental
management/
biodiversity

3,099 tons
51,131 tons

Groundwater (in Japan)

Amount incinerated or put into
landfill

Chemical substances
consumption/emissions

21,795 tons

HFCs

Other

Environmental impact oflogistics

Fiscal year 2015

In Japan
79,359 KL
Outside Japan

10

In Japan
Outside Japan7
3

8

In Japan
Outside Japan

4
4

Number of ecosystem tours(in Japan)

16

13

Number of ecosystem tour
participants (in Japan)

42

69

16,331 tons

13,596 tons

00

Total product shipment(in Japan)
Non-compliance* For scope 3, see p. 22.

31

Social Performance Summary
Fiscal year 2014
Composition of
employees

Proportion ofphysically-challenged
employees

Regular employees

Total:

Male:
7,271
Female:Fiscal year 2015
6,262
Total:
1,009

7,166

Male:
Female:

6,165
1,001

Non-regular employees(temporary, part-time)

1,570

1,455

Tokyo Electron Limited(unconsolidated)

1.8 %

2.0 %

Group companies in Japan1.9 %Proportion of female managers among managerial personnel

30

1.2 %

Retention after three years of joining
the company

1.9 %
32

1.3 %

94.3 %

93.6 %

Male: 15 years and
15 years and9 months
7 months Female: 14 years and3 months

Male: 16 years and6 months
16 years and4 months Female: 15 years and3 months(average in recent five years)

Employee retention

Human
Resources/
Labor
Management(at Groupcompanies inJapan excluding
Tokyo Electron
Device Limited)

Average service years

Turnover1.6 %Use of annual paid leave

Childcare support
systemNursing care support
Special paid leavesystemSafety education

2.5 %
3.4 %
61.8 %

95 %

52

95 %

Number and percentage of those who
returned to work after childcare leave

53

93 %

46

88 %

Number of those who took paternity
leave

211

192

Number of those who used theshorter working hours system

159

Male:
Female:

8
151

183

Male:
Female:11
172

Number of those who took childcare
leave to care for a sick/injured child

435

Male:
Female:

240
195

460

Male:
Female:246
214

Number of those who took childcare
support leave

92

Male:
Female:

17
75

96

Male:
Female:24
72

Number of those who took nursing
care leave

22

Male:
Female:

13
9

20

Male:
Female:11
9Number of those who took
refreshment leave (special paid leave

772

1,285

78

84

82

69

0.37

0.24

Participation in basic safety
introduction/update education

100 %

100 %

Participation in advanced safety
introduction/update education

100 %

100 %

Total: approx. 130

Total: approx. 120

granted according to service years for physicaland mental refreshment of employees)

TCIR

CSR management
promotion

Participants in EICC ® Code of
Conduct seminars

100 %99.7 %

Thorough compliance

Participation in web-based testformat education on corporate
ethics/compliance
Confirmed agreement to comply withinformation security regulations

CSR/compliance

100 %

100 %

Improvement of
supply chain CSR

Rate of improvement after CSR
procurement survey*

—

25 %

* Improvement: Percentage
of suppliers whose
evaluation improved in thisyear’s survey, excluding
those already having thehighest ratings

Rate of improvement after
procurement BCP survey

—

41 %

Rate of improvement after green
procurement survey

—

46 %

Conflict minerals
surveyNumber of identified CFSP-certified
smelters—

117

Spending on social contribution (million yen)Socialcontribution

Male:
Female:59.6 %(a system to provide time and financial assistance to employees who intend todevelop their professional skills outside the TEL Group)

Safety2.7%

70

Users of second career support system
Number ofoccupational
accidents

1.4 %
3.3 %

Number and percentage of those who
took childcare leave

Retirees who used reemployment system

Supply chain
management(at suppliers inJapan)

Male:
Female:Cash donations
breakdown

259

184

Charity donations(providing donations/relief materials
to charity organizations)5%2%Community investment(charitable expenses for long-term
cause for community)

38 %

47 %

Commercial initiatives(charitable expenses for anticipatedeffects on business)

57 %

51 %

32

The Tokyo Electron GroupCSR Policy
Code of Ethics
I. Principles
1. Compliance with Applicable Laws

Tokyo Electron Group board members and employees must comply at all times with the applicable laws and regulations of each country and region as
well as with international regulations, in doing the global business activities, while abiding with corporate ethics and putting them into practice in a spiritof good faith.
Tokyo Electron Group board members and employees must act in accordance with social conscience based on a high ethical awareness.

2. Acting in Accordance with Social
Conscience
3. Maintaining Harmonious Relationships Tokyo Electron Group board members and employees must be aware that both themselves and the company are members of their local communities,
with Local Communities
and must strive to achieve mutually beneficial development while collaborating with these communities.
II. Honest and Fair Business Activities
II-1 Technology, Safety, and the Environment
4. Ensuring Safety and Pursuing
Quality
5. Promoting Environmental
Preservation Activities
6. Ethics in ManufacturingII-2 Fair Trade
7. Implementing Fair and Open
Competition
8. Fair Business with SuppliersTokyo Electron Group board members and employees must ensure safety and pursue quality in all their business activities including development,
manufacturing, sales, service, and administration.
Tokyo Electron Group must conduct its business activities while maintaining harmony with the global environment.
Tokyo Electron Group board members and employees must engage in manufacturing with a high ethical awareness and a spirit of good faith.
Tokyo Electron Group must not engage in any conduct that hinders competition in fair and open markets.

Tokyo Electron Group selects suppliers based on fair standards. When conducting business with suppliers, we must not use our dominant bargaining
position in a transaction to unfairly harm the interests of suppliers.
Tokyo Electron Group board members and employees must strictly manage confidential information of the company with special care and must notdisclose or improperly use confidential information during the term of their employment or after retirement from the company without following theproper procedures according to the company’s internal regulations and non-disclosure agreements. In addition, the confidential information of othercompanies must be respected and properly managed and must not be obtained by improper means.
10. Strict Export/Import Controls
Tokyo Electron Group board members and employees must comply with all applicable laws and the company’s regulations based thereon concerning
the import and export of goods and transfers of technology.
11. Reasonable Exchanges of Gifts
Tokyo Electron Group board members and employees must not give gifts to, or receive them from, a company or individual based on a businessand Entertainment within therelationship, beyond the bounds of common business practice in the relevant location. Giving or receiving gifts of cash or cash equivalents is prohibited,
Bounds of Common Sense
regardless of the amount (except for purposes recognized as appropriate in common practice, such as condolences or expressions of sympathy insome countries and regions).
Furthermore, entertainment with companies or individuals with whom one has a work-based relationship must be carried out moderately within thebounds of common sense.
II-3 Relationship between the Company and Individuals
9. Handling of Confidential
Information

12. Prohibition of Conduct Causing
Conflicts of Interests
13. Prohibition of the Improper Use ofCompany Assets
14. Prohibition of Conduct ofHarassment
III. Being a Good Corporate Citizen
15. Prohibition of Insider Trading
16. Prohibition of Political Activities
and Contributions
17. Prohibition of Involvement in
Antisocial Forces
18. Respect for Individuals
Personnel Policy
Respect for Human Rights
Diverse Workforce
Human Resource Development
Employee Assessment andTreatment
Occupational Safety and HealthWork-Life Balance
Safety Policy
Safety First
Pursuit of Safe Technologies
Management and Employees
Responsibility
Legal Compliance
Collaboration and Cooperation withSociety
Quality Policy
Quality Always
Quality Design and Assurance
Quality and TrustContinuous Improvement Activities
Communication with Stakeholders
Environment Policy

Tokyo Electron Group board members and employees must not, without due cause, engage in conduct that is, or appears to be, to their own personal
benefit and contrary to the interests of the company (conduct causing conflicts of interests), or which runs the risk of leading to such conduct. In
addition, Tokyo Electron Group board members and employees must not use their position in their work for their own personal benefit.
Tokyo Electron Group board members and employees must not improperly use company assets for their own personal benefit.
Tokyo Electron Group does not allow any form of harassment in the workplace.

Tokyo Electron Group board members and employees must not engage in the purchase or sale of stocks on the basis of information not disclosed to the
public that they obtained in connection to their work duties or business transactions (insider trading).
Tokyo Electron Group board members and employees must not engage in political activities at the workplace. In addition, Tokyo Electron Group does
not make donations of money or company assets to politicians (including candidates) or political parties.
Tokyo Electron Group must not have any relationship, including business relationships, whatsoever with antisocial forces that are likely to disrupt the
public order, safety of the public, or corporate activities. In addition, Tokyo Electron Group must not provide any financial support or accommodation for
any reason to antisocial forces.
Tokyo Electron Group prohibits discrimination on the basis of gender, nationality, age, race, creed, religion or any other reason, while respecting each
person as an individual. Tokyo Electron Group does not use forced labor or child labor.
We respect the character and individuality of each person and strive to create work environments without any infringement of human rights.
We strive to respect and understand differences in values arising from gender, nationality, age, race, creed, religion, and other attributes and to be a
corporation where a diverse range of employees can work to their full potential.
We believe that each employee is the source of value creation and support the development of skills by employees.
We provide opportunities to those employees with the enthusiasm for personal growth and engage in fair evaluation of skills and employee treatment sothat employees with significant results can be rewarded.
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.
We implement measures to enable employees to achieve a good work-life balance.
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.
With an awareness of the factors that impair safety and health in our various business activities, we continuously strive to create safer and more secure
workplaces by making improvements concerning those factors and through intrinsically-safe equipment designs and superior service capabilities.
All employees maintain an awareness of potential problems and of the need for improvement concerning the maintenance and enhancement of safety
and health at all workplaces, and management and employees act in accordance with their respective responsibilities.
We comply with safety and health laws and regulations and international rules, take into consideration industry guidelines, and strive to promote safety
and health.
Based on common understanding with a broad range of stakeholders, we cooperate and collaborate with society and work to appropriately meet their
expectations.
Quality is not only the foundation for customer satisfaction, but also the foundation for meeting expected production schedules and reducing downtime.
We prioritize quality over temporary cost increases.
We build quality into every TEL product during the design phase by focusing on leading-edge technology. By bringing quality into our processes earlyand focusing on quality throughout all processes, we succeed in providing high quality products and services.
When we find a quality problem, manufacturing, sales and service departments analyze the facts and complete a thorough investigation to determine
the cause, resolving the problem as quickly as possible. Our customer can trust in our commitment to address identified quality problems.
We improve quality with an effective quality management system. This includes using quality measures, improving by applying the PDCA cycle, andpracticing continuous improvement activities.
In addition to providing product quality information in a timely manner, we understand and align to the expectations of our stakeholders.

Environmental Goals and Continuous We continually enhance its knowledge of environmental issues to establish voluntary goals that are reviewed by Executive Management and drive
Improvement
continuous improvement and full regulatory compliance.
Promotion of Environmental Technology We aim to invest in the development of leading-edge, high value products and services that directly contribute to a sustainable society.
Environmental Contribution withWe develop eco-friendly products through our leading-edge technology. Group cooperates with our customers and suppliers to strive for the prevention
Product
and improvement of a wide range of environmental concerns.
Operational Environmental Impact
We quantitatively analyze and reduce the environmental impact of its global operations with activity from all levels of employees and operations.
Reduction and Preservation
Collaboration and Cooperation with We actively promote collaboration and cooperation with all our stakeholders to achieve mutual understanding and conformance to expectations.
Stakeholders and Society
Procurement Policy
Compliance with Applicable Laws
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.
and Social Norms
Priority on the Environment
We conduct procurement with full consideration for reduction of environmental impact and protection of the global environment.
Fair Business Practices
We continuously seek high-value technologies and create broad opportunities for their business transactions based on the precondition of open
competition.
Partnership
We prioritize relationships of trust based on mutual understanding with suppliers and conduct activities in the pursuit of mutual continuous growth.
Information Management
We properly manage the confidential information of suppliers that we obtain in the course of business.

33

Tokyo Electron Group Environmental and Social Report 2015

GRI Guidelines Table
1. Strategy and Analysis
Page foundStatement from the most senior decision-maker of the organization (e.g., CEO, chair or equivalent senior position) about the
1.1
pp.4–5
relevance of sustainability to the organization and its strategy.
1.2
Description of key impacts, risks and opportunities.
pp.4–9, 13, 18–22, 31–32
2. Organizational Profile
Page found
2.1
Name of the organization.
p.3
2.2
Primary brands, products and/or services.
p.3
2.3
Operational structure of the organization, including main divisions, operating companies, subsidiaries and joint ventures.
p.3
2.4
Location of organization’s headquarters.
p.3
Number of countries where the organization operates, and names of countries with either major operations or that are specifically
2.5
p.3
relevant to the sustainability issues covered in the report.
2.6
Nature of ownership and legal form.
p.3
2.7
Markets served.
p.3
2.8
Scale of the reporting organization.
p.3
2.9
Significant changes during the reporting period regarding size, structure or ownership.
p.3
2.10
Awards received in the reporting period.
pp.18, 27, 29
3. Report Parameters
Page found
3.1
Reporting period for information provided.
p.3
3.2
Date of most recent previous report.
p.3
3.3
Reporting cycle.
p.3
3.4
Contact point for questions regarding the report or its contents.
p.36 (back cover)
3.5
Process for defining report content.
pp.6–7
3.6
Boundary of the report.
p.3
3.7
State any specific limitations on the scope or boundary of the report.
p.3
Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly
3.8
p.2
affect comparability from period to period and/or between organizations.
Datameasurement
techniques
and
the
bases
of
calculations,
includingassumptions
andtechniques
underlying
estimations
3.9
pp.19, 26–27, 31–32
applied to the compilation of the Indicators and other information in the report.
Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement
3.10
pp.19, 25–27(e.g., mergers/acquisitions, change of base years/periods, nature of business, measurement methods).
3.11
Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report.
p.3
3.12
Table identifying the location of the Standard Disclosures in the report.
p.34
4. Governance, Commitments, and Engagement
Page found
Governance structure of the organization, including committees under the highest governance body responsible for specific tasks,
4.1
p.12, Annual Reportsuch as setting strategy or organizational oversight.
4.2
Indicate whether the Chair of the highest governance body is also an executive officer.
p.12, Annual Report
For organizations that have a unitary board structure, state the number and gender of members of the highest governance body
4.3
p.12, Annual Reportthat are independent and/or non-executive members.
4.4
Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body.
p.12, Annual Report
Linkage between compensation for members of the highest governance body, senior managers, and executives and the
4.5
p.12, Annual Reportorganization’s performance.
4.6
Processes in place for the highest governance body to ensure conflicts of interest are avoided.
p.12, Annual Report
Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and
4.8
pp.8–9, 15, 33
social performance and the status of their implementation.
Proceduresofthehighestgovernancebodyforoverseeing
theorganization’s
identification
andmanagementofeconomic,
4.9
pp.12, 15environmental and social performance.
Processesforevaluatingthehighestgovernancebody’sown
performance,
particularlywithrespecttoeconomic,
environmental
4.10
pp.12, 13
and social performance.
4.11
Explanation of whether and how the precautionary approach or principle is addressed by the organization.
pp.12–14, 18, 23, 25
Externally developed economic, environmental and social charters, principles, or other initiatives to which the organization
4.12
pp.4–5, 15
subscribes or endorses.
4.13
Memberships in associations (such as industry associations) and/or national/international advocacy organizations.
pp.4–5, 15, 25
4.14
List of stakeholder groups engaged by the organization.
p.7
4.15
Basis for identification and selection of stakeholders with whom to engage.
pp.6–7
4.16
Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group.
p.7
Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to
4.17
pp.6–30
those key topics and concerns, including through its reporting.
5. Management Approach and Performance Indicators
Page foundEconomic
Management Approach
pp.12, 15, 33, Annual Report
Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations andEC1
p.32
other community investments, retained earnings, and payments to capital providers and governments.
EC2
Financial implications and other risks and opportunities for the organization’s activities due to climate change.
p.22
EC6
Policy, practices and proportion of spending on locally based suppliers at significant locations of operation.
p.33
Environmental
Management Approach
pp.15, 22–23, 33
EN1
Materials used by weight or volume.
p.31
EN3
Direct energy consumption by primary energy source.
pp.22, 26, 31
EN4
Indirect energy consumption by primary source.
pp.22, 26, 31
EN5Energy saved due to conservation and efficiency improvements.
p.24
Initiatives to provide energy-efficient or renewable-energy-based products and services, and reductions in energy requirements
EN6p.24
as a result of these initiatives.
EN7
Initiatives to reduce indirect energy consumption and reductions achieved.
pp.26, 31
EN8
Total water withdrawal by source.
pp.26, 31
EN14Strategies, current actions, and future plans for managing impacts on biodiversity.
p.23
EN16
Total direct and indirect greenhouse gas emissions by weight.
pp.22, 26, 31
EN17
Other relevant indirect greenhouse gas emissions by weight.
pp.22, 26, 31
EN18
Initiatives to reduce greenhouse gas emissions and reductions achieved.
pp.22, 24–26, 31
EN20
NOx, SOx and other significant air emissions by type and weight.
p.31
EN22
Total weight of waste by type and disposal method.
pp.27, 31
EN23
Total number and volume of significant spills.
p.23
EN26
Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation.
p.24
EN27
Percentage of products sold and their packaging materials that are reclaimed by category.
p.24
Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and
EN28
p.23
regulations.
Significant
environmental impacts of transporting products and other goods and materials used for the organization’s operations,EN29
pp.22, 25, 31
and transporting members of the workforce.
EN30
Total environmental protection expenditures and investments by type.
p.26

34

Labor Practices and Decent WorkManagement Approach
LA1
Total workforce by employment type, employment contract, and region, broken down by gender.
LA15
Return to work and retention rates after parental leave, by gender.
Rates of injury, occupational diseases, lost days, and absenteeism, and total number of work-related fatalities, by region and by
LA7
gender.
Programs for skills management and lifelong learning that support the continued employability of employees and assist them in
LA11managing career endings.
Human Rights
Management Approach
Operations and significant suppliers identified as having significant risk for incidents of child labor, and measures taken to
HR6
contribute to the effective abolition of child labor.
Operations and significant suppliers identified as having significant risk for incidents of forced or compulsory labor, and measures
HR7
to contribute to the elimination of all forms of forced or compulsory labor.
HR11
Number of grievances related to human rights filed, addressed and resolved through formal grievance mechanisms.
Society
Management Approach
SO3
Percentage of employees trained in organization’s anti-corruption policies and procedures.
SO4
Actions taken in response to incidents of corruption.
SO8
Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations.
Product Responsibility
Management Approach
Life cycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage of
PR1
significant products and services categories subject to such procedures.
Total number of incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts of
PR2
products and services during their life cycle, by type of outcomes.
Type of product and service information required by procedures, and percentage of significant products and services subject toPR3such information requirements.
Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information
PR4
and labeling, by type of outcomes.
PR5
Practices related to customer satisfaction, including results of surveys measuring customer satisfaction.

pp.15–16, 18, 33
pp.16, 32
p.32
p.19
p.17
pp.15–16, 21, 33
p.21
p.21
p.14
pp.8, 14–15, 33
p.14
p.14
p.14
pp.15, 18, 20–23, 33
p.18
p.18
p.24
p.22
p.20

UN Global Compact Table
The Ten Principles

Content detailed

Page
found

Human
RightsPrinciple 1:
Businesses should support and respect theprotection of internationally proclaimed
human rights.
Principle 2:Businesses should make sure that they are
not complicit in human rights abuses.

• CSR goals• Business ethics and compliance• Approach to CSR• Initiatives for globalization and diversification• Supply chain communication• CSR policy

pp.8–9
p.14
p.15
p.17
p.21
p.33

LabourPrinciple 3:
Businesses should uphold the freedom of
association and the effective recognition of
the right to collective bargaining.
Principle 4:
Businesses should uphold the elimination of
all forms of forced and compulsory labour.

• CSR goals• Business ethics and compliance• Approach to CSR• Worker-friendly environment• Procurement• CSR policy

pp.8–9
p.14
p.15
p.16
p.21
p.33

• Management Policies• CSR goals• Approach to CSR• Environment• Social contribution• CSR policy

p.2
pp.8–9p.15
pp.22–27
pp.28–29
p.33• Management Policies• CSR goals• Corporate governance• Approach to CSR• Procurement• CSR policy

p.2
pp.8–9
pp.12–14
p.15
p.21
p.33

Principle 5:
Businesses should uphold the effective
abolition of child labour.

Environment

Principle 6:
Businesses should uphold the elimination of
discrimination in respect of employment andoccupation.
Principle 7:
Businesses should support a precautionary
approach to environmental challenges.
Principle 8:
Businesses should undertake initiatives topromote greater environmental responsibility.

Anticorruption

Principle 9:Businesses should encourage thedevelopment and diffusion of environmentallyfriendly technologies.
Principle 10:
Businesses should work against corruption in
all its forms, including extortion and bribery.

35

TEL Eco-Life Art Contest
The Tokyo Electron Group holds the TEL Eco-Life Art Contest every year as part of its activities to raise environmental awareness.
In the six years since 2009, the contest has received a total of 1,538 submissions. A selection of the winning entries for fiscal year
2015 can be found below.
(Text in square brackets refers to the location of the employee who submitted the artwork.)

Rainbow

Clean Valley of Moraine
lake at Canada

Yes, I am back!

[Singapore]

Chalk art by kids

[Japan]Cherry trees in full bloom at
Jisso-ji Temple and Mount
Kaikomagatake[Japan]

Enjoying the flowers
and clean mountain air[U.S.][Korea]The world under
the sea[Korea]Hello my old friend[Taiwan]Flowers and creatures[Japan]Walking in autumn[Korea]A member of a family party[China]Gorgeous[Taiwan][Germany]

TOKYO ELECTRON LIMITEDCSR Promotion Department
Akasaka Biz Tower, 3-1 Akasaka 5-chome, Minato-ku,
Tokyo 107-6325, Japan
Tel: +81-3-5561-7000

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

http://www.tel.com/contactus/

PR53 -172 Published: August 2015