TEL is making efforts to reduce the environmental burden at all production plants and offices based on the EHS management structure.
Our Stance on Waste Reduction and Recycling
"Produce no waste. Recycle any waste that is produced. Properly dispose of any waste that cannot be recycled." Based on these princi- ples, TEL is working to minimize the waste generated by our business. With a shortage of waste disposal sites in Japan and landfill costs on the rise, efforts to reduce waste not only help to minimize environ- mental burden, but also lead to lower production costs. Namely, we are sorting waste for collection, finding new recycling services, man- aging the certification of the waste processing service contractors, periodically checking final disposal conditions, and shifting to proc- esses that do not generate waste. We are also displaying information on how to sort waste near waste and recycling receptacles in four lan- guages for our foreign visiters and employees, so that they can sort the waste easily. We are minimizing our environmental burden through these activities.
Total Waste and Recycling Ratio
The amount of TEL waste that reached landfills and our recy- cling rate are summarized in the graph below. As a result of our efforts to use resources efficiently, the recycling rate has been rising year after year. Our initial plan was to achieve a 90 percent overall recycling rate by FY 2006, but we reached 93 percent in FY 2004, ahead of schedule. We subsequently established a new target and are now aiming for a recycling rate of 95 percent or higher by FY2006.
Zero-Emission
At TEL, we have been promoting waste reduction and recycling and we call those plants that achieve their target "zero-emission plants." Specifically, zero emission plants are those that incinerate or send less than two percent of total waste to landfills. As a result, the four plants of Tokyo Electron Kyushu Ltd. (Saga, Kumamoto, Koshi, and Ozu) reached the status of zero-emissions in FY 2004. TEL aims to achieve zero-emissions at all manufacturing plants in Japan by FY 2006.
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Introduction of Waste Processing Facilities at
Yamanashi Plant Hosaka Area
Highly concentrated hydrofluoric acid waste solutions resulting from wafer and quartz cleansing at Hosaka area cannot be proc- essed by existing facilities. Conventionally, they have been stored in waste solution tanks on site, which were then transported by con- tractors and the disposal commissioned. However, in June 2003 we introduced a hydrofluoric acid treatment system that can process these waste solutions. As a result, approximately 300 tons per month of the waste solution produced at t he Hosaka area can now be processed in-house, which resulted in a system that allows us to slash the amount of waste solution produced as waste. Moreover, while we have greatly reduced the environmental burden of our plant activities, we have also saved the money used on waste transport and fees paid for outsourcing the waste processing. nental Sustoi
Our Stance on Preventing Global Warming
TEL is making efforts to prevent global warming by reducing energy consumption. Most manufacturing plants are classified as Type 1 Designated Energy Management Factories under Japan's Law Concerning the Rational Use of Energy. As the law dictates, these factories have established and observed control standards based on certain criteria, appointed an energy manager, and set up institutional controls on energy consumption. Each of our plants is implementing energy con- servation activities, having set energy-saving targets for lighting and office equipment as well as controlling the setting of air conditioning temperatures. In addition, facilities that are involved in product man- ufacturing and development conduct systematic shutdowns during extended holidays and work to increase the efficiency of each type of work procedure and reduce energy consumption.
Energy Consumption
In FY 2004, with the rise in the utilization rate at t he manufacturing plants in the second half of the year, both manufacturing and sales increased from FY 2003. At t e same time, the energy consumption in terms of CO 2 equivalent stayed roughly the same, resulting in emis- sions per sale unit that were 87 percent of FY 2003 levels. This was a major improvement and we e xceeded our target of a one percent cut. However, unfortunately, this emissions per unit of sales figure, when compared against FY 1998 as the base year is in fact a 168 percent increase. We will continue our energy conservation activities and try to prevent global warming through reducing energy consumption. Environment's "Environmental Activity Evaluation Program." Unit of sales = energy consumption/sales (FY 1998 = 100 percent) *3 Year-on-year ratio = current year unit of sales/previous year unit of sales (Plants in Japan and overseas)
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Clean Room Energy Conservation
In clean rooms where semiconductor and FPD production equip- ment assembly take place, air purifier systems that remove even the tin- iest particles of dust from the air are operating continuously. There is data that indicates that the amount of electricity used for this accounts for more than half of the electricity consumed at a plant. At TEL's Koshi plant, energy conservation is realized through meticulous energy man- agement, such as revising and alternating the frequency of ventilation outside of operation hours, as well as intermittent operation of ventilation and circulation fans to the extent that it does not affect the cleanliness of the room. Moreover, electricity consumption was reduced by 2.4 million kWh (approximately 15 million yen) by cutting unnecessary plant power usage and switching off lights when people are not present. the night and holidays Ervironmental Sustainabilty teport 200s

Our Stance on Resource Conservation
To continue our efforts in reducing the amount of resources we use, we are also conducting green purchasing. To promote resource conservation, we work to reduce the amount of water, copy paper and stationery that we use or purchase, are proactive in our purchas- ing of green products, and work with office suppliers to have them collect the items we no longer need.
Efforts to Reduce Paper Usage
All companies in TEL are working to reduce paper consumption. For example, employees are encouraged to use both sides of paper and to reduce the size of copies. In addition, we are making efforts to share information without using paper, such as by using electronic means to circulate documents and notices. As a result, we reduced the amount of copy paper consumed from FY 2003 by nine percent and used about 8 million fewer sheets of paper in FY 2004. Except for in particular cases, we try to use recycled paper, and will continue to reduce paper con- sumption by revising our operations and keep the use of paper to the minimum for  necessary records and forms. We are also contributing to the con- servation of forest resources by substituting non-wood resource paper cups made of kenaf.
Efforts to Reduce Water Usage
Our manufacturing plants are undertaking various activities to reduce water consumption. With the help of special circulation equip- ment, we are reducing water usage by recycling industrial water used in all stages of operations, such as coolant water used for manufacturing, development, testing, shipping, inspection, etc. Furthermore, we have installed automatic flushing toilets at each plant to prevent needless consumption as well as prevent people from neglecting to turn off the water or other needless use of water.
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Efforts at Office Facilities
At the Sapporo office of Tokyo Electron Software Technologies, we have stopped using disposable plastic cups as a part of our resource conservation activities, and employees now bring their own cups. We are also encouraging employees to use both sides of the paper to reduce the consumption of copy paper. In order to further our resource conservation activities, we are awarding employees and groups that make outstanding efforts in their activities. In FY 2004, we awarded two individuals, one group and one floor for their efforts. nental Sustainability
Our Stance on Environmental Risk Management
When we introduce a new gas or chemical solution at the time of a product evaluation, we perform a risk assessment prior to using it and take measures when necessary. We have learned from accidents that have befallen other compa- nies, and in FY 2004, we performed a survey of our disaster preven- tion system, checking the disaster prevention organization, facilities and equipment, emergency contact network, and management struc- ture among contractors in each manufacturing plant. All shortcomings were budgeted for and rectified as necessary.
Abiding by the Law
We are working to comply with environmental legal, emission stand- ard. However, on December 2, 2003, an on-site inspection (water quality analysis) at our Miyagi Plant resulted in an advisory notice calling for us to improvement the BOD figures for our wastewater, as they exceeded accepta- ble levels. We suspect the cause to be poor functioning of microbes used to treat water brought on by an increase in employees working during the week- ends. We have switched the operation of the aeration blower to match suita- ble work conditions and filed a report announcing improvement in the situa- tion on January 6, 2004. We also received complaints about abnormal odors coming from localized organic solvent emissions and the various emission tanks coming from the cafeteria as a result of repair work in the Yamanashi plant. We have taken countermeasures and corrected the situation. Apart from these cases, we have had no environment-related accidents, viola- tions, fines, complaints, or related lawsuits, ground pollution, economic sanctions or advisory notices from the government.
Controlling Chemical Substances
TEL is strictly controlling and continuously keeping tabs on chemical substances as set out by the law. Moreover, in the way of PCBs, we have two transformers and four capacitors and have them securely stored them away.
chemical substances that may be hazardous to ecosystems and human health. It involves determining, compiling and reporting on the amounts of chemicals used, released into the environment and contained in waste transferred off-site.
Use of Global Warming Substances
TEL releases CO 2 through the use of energy and PFC group chemicals and SF 8 , types of greenhouse gases, during processes, such as dry etching or cleansing. The total consumption and emission of these substances was equal to 10,000 tons CO: equivalent. We will continue to make efforts to manage and reduce the consumption of these substances.

● TEL Inputs and Outputs
The material flow of TEL is summarized in the chart on the right. Each number is the combined total for manufacturing plants and office facilities. The distinguishing characteristic of TEL is the large envi- ronmental burden at the time of equipment evalua¬ tion. This is because we are evaluating the equip- ment using the same processes as employed during semiconductor production, using electricity, various gases and solutions.
■ TEL’s Substance Flow

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