Environment
Our Approach to the Environment
Tokyo Electron aims to solve environmental issues through our leading-edge technology and services under the slogan of "Technology for Eco Life." We strive to contribute to the establishment of a sustainable society by reducing our 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.
Revised July 1, 2016
- Environmental Goals and Continuous Improvement
- We establish environmental goals and continual improvement of the environmental management system to enhance environmental performance throughout our product lifecycle.
- Compliance with Applicable Laws
- We continually enhance our knowledge of environmental issues to not only comply with applicable laws, but also set additional voluntary standards.
- Environmental Contribution with Product
- We develop environmentally complimentary products through our leading-edge technology. TEL cooperates with our customers and suppliers to strive for the prevention and improvement of environmental impacts to contribute to a sustainable society.
- Operational Environmental Impact Reduction and Preservation
- We quantitatively analyze and reduce the environmental impact of TEL global operations, with activity from all levels of employees and operations to prevent pollution and protect the environment.
- Collaboration and Cooperation with Stakeholders and Society
- We actively promote collaboration and cooperation with all our stakeholders to achieve mutual understanding and conformance to expectations.
Based on the above-mentioned policy, we strive to reduce the environmental impacts on the entire value chain of the product lifecycle (planning, development, designing, procurement, manufacturing, logistics, use by customers, maintenance services, and disposal of products). In addition, the lifecycle of our products covers the time they are at suppliers we procure from, contractors used for development, manufacturing, and logistics, and customers the products have an environmental impact at. We strive to conduct due diligence by grasping potential environmental risks when we engage in M&A or newly enter projects. The above-mentioned policy is being implemented based on decisions made by the CEO and corporate directors in charge acting as highest decision-makers, and decisions are reflected onto management.
Environmental measures are growing more crucial. To promote activities in the medium to long term that meet the environmental/ESG needs of its customers and other stakeholders, Council for the Regular Reporting of Environmental Activities, which includes the CEO and the corporate director in charge of the environment, and the Manufacturing Companies Presidents' Council, monitor and supervise progress related to environmental issues. Environment Promotion Department, headed by the director in charge of the environment, has been established at the head office to promote environmental activities throughout the Group. The Environment Council, made up of members appointed by the executives of the Group companies, sets targets related to environmental issues, monitors progress and also works to achieve its goals.
Furthermore, to continuously promote our environmental activities, we began operation of an environmental management system based on ISO 14001 since fiscal year 1998, primarily at our manufacturing subsidiaries. In March 2017, we obtained ISO 14001 certification for the entire group, which had previously been obtained at each plant and office in Japan. In accordance with this certification, we have identified environmental impact assessments and useful environmental aspects and are executing a standardized group format for environmental management programs and internal audit checklists. Continuing from the last fiscal year, we implemented improvement activities to achieve a total of approximately 100 environmental goals established for different levels as part of a Group-wide environmental management. Any issues identified through these activities are reviewed by the Global Environment Council and reported to the Manufacturing Companies Presidents’ Council. We were once again free from environmental incidents, accidents, violations and legal proceedings in fiscal year 2023.
| Conference Name | Participants | Function | Meeting Frequency |
|---|---|---|---|
| Council for the Regular Reporting of Environmental Activities | CEO, corporate director in charge of the environment | Report on matters discussed at the Global Environment Council and the TEL Corporate Environment Council and review items for approval | Quarterly |
| Manufacturing Companies Presidents’Council* | Corporate director in charge of the environment, etc. | Monitor and supervise progress related to environmental issues | Quarterly |
| TEL Corporate Environment Council | The GMs in charge of the environment and vice presidents of department,, etc. | The promotion of environmental activities across the entire Group, set Group-wide goals | Appropriately |
| Global Environment Council | Appointed members by the executives at headquarters and the Group companies | Set individual goals related to environmental issues, monitor progress, work to achieve our goals | Twice annually |
At the Manufacturing Companies Presidents’ Council, information is shared on business affairs and issues regarding environment, safety, quality, supply chain management, etc.
ISO 14001:2015 Certified Plants and Offices
| Company Name | Plant/Office name | Certification Number | Certification Date | Update Date |
|---|---|---|---|---|
| Tokyo Electron | Environment Promotion Department (Fuchu Technology Center) | 1124-1998 -AE-KOB-RvA | May 1998 | Mar. 2023 |
| Tokyo Electron Technology Solutions | Fujii Office/Hosaka Office/Tohoku Office | |||
| Tokyo Electron Kyushu | Koshi/Ozu Office | |||
| Tokyo Electron Miyagi | Taiwa Office | |||
| Tokyo Electron（Kunshan） | — | 130755-2013-AE-RGC-RvA | Mar. 2013 | Mar. 2022 |
| TEL Manufacturing and Engineering of America | Chaska Office, North Chelmsford Office |
EMS586278 | Mar.2013 | Feb. 2022 |
| Tokyo Electron Korea | TEL Technology Center Korea, Balan Plant | ESC2795 | July 2014 | Aug. 2023 |
E-COMPASS
As an industry leader in the domain of environmental management company, we rolling out E-COMPASS (Environmental Co-Creation by Material, Process and Subcomponent Solutions) , our environment-focused initiative.. Through E-COMPASS, we will work together with our customers and partner companies to preserve the global environment by promoting technological innovation and aiming to reduce the environmental impact of semiconductors throughout the entire supply chain, centering on the three following perspectives.
- Pursuing higher performance and lower consumption in semiconductors
- Achievement of both process performance and environmental performance of equipment
- Reducing of CO₂ emissions in all business activities
Environmental Risks and Opportunities
Various environmental issues affect our daily lives and corporate activities. Physical risks, such as rising average global temperatures, strong winds, disasters and water shortages caused by climate change and abnormal weather, are expected to damage assets, increase operating costs and impact the supply chain. In addition, legal risks including stronger environmental laws and regulations, more stringent regulations on greenhouse gas emissions and the introduction of carbon taxes are expected to lead to higher costs for associated measures.
At the same time, promoting environmental initiatives leads to more opportunities to sell environmentally friendly products and reduce operating costs. We also recognize that providing high-value-added products that contribute to higher performance and lower power consumption of semiconductors and FPDs leads to the building of an energy-saving society that makes the most of information technology, and thus provides an opportunity to improve corporate value.
Based on the requirements of ISO 14001, we identified and analyzed internal and external issues in relation to the environment, namely, our relationship with the climate, air quality and water quality. We also clarified the environmental needs and expectations of customers, suppliers, governments and employees and identified our compliance obligations as an organization. In addition, we define risks and opportunities to address as: (1) environmental management by reducing the environmental impact of our business activities, (2) compliance with applicable laws and (3) enhancing product competitiveness with the environmental contribution of products.
In addition, we are also considering risks and opportunities that are expected to occur due to the impact of climate change based on recommendations of the TCFD.
TCFD
Initiatives Related to Recommendations of the Task Force on Climate-related Financial Disclosures (TCFD)
Based on the TCFD recommendations, we examine the risks and opportunities that climate change poses to our business and take various response measures as we endeavor to make ongoing disclosures.
Status of Initiatives Related to Recommendations of the TCFD
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Governance
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| Strategy |
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| Risk Management |
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| Metrics and Targets |
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Refer to Risk Management
Refer to E-COMPASS, Initiatives with Suppliers (E-COMPASS)
Refer to Medium- and Long-term Environmental Goals and State of Progress
Anticipated Risks and Opportunities of Climate Change Impact and Our Response
- Timeline: Short-term = five years or less; medium-term = 2030; long-term = 2050
- Scenarios used: 1.5 ˚C scenario (1.5 ˚C temperature increase), 4 ˚C scenario (4 ˚C temperature increase)
- Scope: The entire Group as well as the entire value chain including upstream and downstream
| Type (Scenario) |
Risk | Timeline of Risk Manifestation | Anticipated Risks | Impact on Tokyo Electron | Risk Evaluation*¹ | Our Response |
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| Transition Risks (1.5°C scenario) |
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Short- to medium-term |
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Low～ Middle |
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Short- to medium- to long-term |
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Low～ High |
②Achieving both the process performance and environmental performance of equipment (development of technology to achieve reduction of CO₂ emissions per wafer during the use of our reference products , etc.) ③Reducing CO₂ emissions in all business activities (promotion to save energy in the supply chain and adoption of renewable energy, etc.)
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| Physical Risks (4°C scenario) |
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Short- to medium-term |
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High |
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Medium- to long-term |
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Low |
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| Opportunities (Common) |
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Short- to medium-term |
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High | |
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Medium- to long-term |
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Middle～ High |
Risk evaluation: sets out the findings of evaluations of the impact of risks within Tokyo Electron.
Carbon tax: We referred to the International Energy Agency (IEA) Net Zero Emissions by 2,050 Scenario for the increase in tax associated with GHG emissions. 1 U.S. dollar was converted as 130 yen.
Suppliers’ BCP assessments: Assessments have been conducted since fiscal year 2014 for suppliers accounting for more than 80％ of our procurement spend (more than 85％ of our procurement spend from fiscal year 2023).
CO₂ Emissions Across the Value Chain
Based on our environmental slogan “Technology for Eco Life,” we aim to resolve environmental problems through leading technology and reliable services, understand the environmental impact generated throughout our entire value chain and promote business activities to reduce that impact. Our total CO₂ emissions of Scope 1 and Scope 2 is 42 kilotons, while Scope 3 as the sum of upstream and downstream activities accounts for a total of 14,333 kilotons, approximately 99.7％ of the total. Among these, CO₂ emissions during product use account for approximately 70% of the total, or 9,854 kilotons. This is why we consider the development of products with low CO₂ emissions during operation is important. In fiscal year 2023, we also revised our calculation method for emissions resulting from the use of products and services we have purchased and products we have sold, in order to calculate our Scope 3 emissions with greater accuracy.
- Scope 1: Direct greenhouse gas (GHG) emissions from use of fuel and gas we owned or controlled
- Scope 2: Indirect GHG emissions from use of electricity, steam and heat we purchased
- Scope 3*: Emissions from corporate value chains (excluding Scope 1 and 2 emissions), 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, and downstream activities, which include emissions associated with sold products and services.
Medium- and Long-term Environmental Goals and State of Progress
We have set the following medium- and long-term environmental goals.
Own Emissions (Scope 1 and 2)
We aim to reduce total CO₂ emissions at plants and offices by 70% (compared with fiscal year 2019), increase the rate of 100% renewable energy usage by fiscal year 2031, and achieve net zero by fiscal year 2041. In order to achieve the above objectives, we have launched initiatives for energy saving/ creation, recycling, alternative energy, renewable energy use, emissions trading, etc.
Outside Our Group (Scope 3)
We aim to achieve net zero by fiscal year 2041. In order to achieve these goals, we must have the cooperation of our customers and suppliers. More concretely, we will promote development of processes, etc. that aim to increase the ratio of environment-conscious materials, reduce logistics-related emissions through modal shifts and joint delivery, improvement of energy efficiency, energy saving in utility equipment and process development with an awareness of GHG emissions reduction.
Achievement levels of goals
◎Exceeded target 〇Proceeding well △Need to accelerate to achieve the goal
| Category | Item to reduce | Goal value | Fiscal year to achieve goal | Achievement level as of fiscal year 2023 | Evaluation |
|---|---|---|---|---|---|
| Plants and offices | Total CO₂ emissions | 70% reduction | 2031 | Reduced by 76% | ◎ |
| Renewable energy (electricity) | 100％ | 2031 | 91% | ○ | |
| Energy consumption (per-unit basis) | 1% reduction | Comparison with the previous year's result | Achieved goal at 6 of 11 plants and offices | ○ | |
| Products* | CO₂ emissions | 30% reduction | 2031 | Reduced by 20.8% | ○ |
| GHGs (CFCs) | 20% reduction | 2031 | Reduced by 34.8% | ◎ | |
| Logistics | Reduction in CO₂ emissions | 10% reduction | 2027 | 11.4% reduction | ◎ |
| Environmentally- sensitive packaging materials used (Replacing wooden frames with reinforced corrugated cardboard | 50% | 2024 | 20.3% reduction (Fourth quarter of fiscal year 2023) |
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Processed using representative equipment at each BU
Based on the roadmap for products to achieve the goals, for each product we calculated the reduction in consumption of electricity, process gases and chemicals, water, and other resources depending on how much of the above are consumed when the relevant product is manufactured or used, effects of the reduction in consumption of these resources, and the reduction in consumption due to improved productivity. In October 2023, we have received the certification from the SBT initiative* for our greenhouse gas emission reduction targets set for 2030 (Scope 1,2 and 3). We will continue to work as one company-wide on initiatives aimed at achieving net zero by fiscal year 2041.
Science Based Targets initiative(SBTi): The Paris Agreement aims to limit global warming to well below 2°C, preferably to 1.5°C, compared to pre-industrial levels. SBTi is an international initiative to certify greenhouse gas emission reduction targets set by companies for the next five to 15 years, consistent with the levels required by the Paris Agreement.
Progress in related initiative
- Reduction of water consumption: Initiatives to Conserve Water Resources and Reduce Water Consumption
- Reduction of waste: Initiatives to Reduce Waste
- Management of toxic substance emissions: Management of Chemical Substances, Initiatives for Product Environmental Laws and Regulations
Product Initiatives
Products that Contribute to a Sustainable Society
Of the CO₂ emissions from our value chain, emissions during product use account for about 70％. We believe that the low energy consumption of products is important as part of our social responsibility as a semiconductor production equipment manufacturer and are working on environmentally friendly product design. In fiscal year 2023, we promoted activities based on guidelines for calculating CO₂ emissions* and a roadmap for key models to reach our annual sustainability goal of reducing per-wafer CO₂ emissions by 30％ by fiscal year 2031 (compared with fiscal year 2019) for the key models of each business unit. As a result, the CO₂ emissions of equipment shipped were reduced by 20.8％ compared to baseline equipment. Regarding "Reduce per-wafer emissions of GHGs (F-gases) by 20% by fiscal year 2031 (compared with fiscal year 2019)", which is a goal we must attain to achieve net zero, we reduced emissions by 34.8% ahead of schedule in fiscal year 2023.
In addition, we use the Green Transformation (GX) Monitor, which captures information on energy use including electricity, water and nitrogen, as well as equipment operating status, and turns it into a database, to visualize energy consumption information during product use. Specifically, we have introduced a system that allows us to check equipment operating status and energy consumption information in chronological order through our intranet, and are planning to expand the scope of this system going forward.
We will continue to work to further raise environmental awareness and incorporate environmental technologies as important added value in our technological strategies, thus contributing to the reduction of the environmental impact of society as a whole.
In addition to energy and water, amounts of process gases and chemical substances consumed, and the sizes of installation areas, and volumes and weights of products have been newly included
Example initiative
In order to achieve the mid-term environmental goals for fiscal year 2031, we are developing and employing energy-saving accessories, improving the productivity of equipment through high-throughput*, and reducing consumption of utilities via flow rate control. Furthermore, we are also actively implementing activities such as enhancing the yields of product parts, increasing the lengths of maintenance cycles, stabilizing operations, and reducing footprints that indirectly contribute to reductions of CO₂ emissions and environmental loads.
In fiscal year 2023, we released several types of equipment with superb environmental performances which utilize our technology, including UlucusTM, a laser edge trimming system which reduces deionized water (DIW) consumption, dust generation and wastewater generation, and CELLESTA™ MS2, a single wafer cleaning system which reduces power consumption during processing while ensuring high productivity.
throughput : the capacity of processing wafers during a certain length of time
Initiatives for Product Environmental Laws and Regulations
In order to comply with each country’s environmental laws and regulations pertaining to products, we promptly collect information and promote proactive responses. For example, we provide our suppliers with information on US TSCA*¹ that will prohibit PIP(3:1)*² from being included in and after November 2024 in order to prompt them to ensure that the substance will not be included in their products, or to use alternative substances. In addition, we have been introducing the chemSHERPA*³ format since fiscal year 2021 and collected information from suppliers on chemical substances in concentrations in the parts per billion (ppb*⁴). As a response toward GHS*⁵ requirements, we provide the necessary safety data sheets (SDS*⁶) and labels when supplying chemical products to customers, in addition to promoting the local procurement of chemical products.
To comply with the frequently revised environmental laws and regulations, we continue to offer “Product Environment Compliance” training to all employees, and provide suppliers with information related to the relevant environmental laws and regulations.
We will continue to grasp each country’s environmental laws and regulations rapidly and strive to respond appropriately.
US TSCA: The Toxic Substances Control Act
PIP(3:1): Phenol, isopropyl phosphate (3:1)
chemSHERPA: A data entry support tool for appropriately communicating information on chemical substances in products across the entire supply chain, and a common system for communicating information on chemical substances contained in products
ppb: parts per billion (1×10-9)
GHS: Globally Harmonized System of Classification and Labelling of Chemicals
SDS: Safety Data Sheet. Refers to the document containing hazard information about chemical substances that is issued when a company transfers or provides chemical substances, or products containing chemical substances, to another company
Product Reuse and Recycling
With the advent of the Internet of Things (IoT), semiconductors are in greater demand and are becoming more diverse than ever. This has driven a corresponding rise in the need for more varied semiconductor production equipment. As a leading manufacturer of semiconductor equipment, we are strongly encouraging reuse and recycling of equipment and components by marketing refurbished TEL equipment and offering modification services to customers who already have our equipment installed. Our refurbished equipment operations start with procuring used equipment from the market, which takes place either directly or through leasing companies. This equipment is then properly tested and refurbished, before being offered to customers as our Certified Used Equipment.
Our equipment modification services boost the productivity of installed equipment by maintaining and improving its quality and availability. Through these approaches, we address our customers’ cost, speed, and performance needs, while also contributing to waste reduction and resource conservation and utilization. These efforts help reduce the use of resources and CO2 emissions associated with procuring and manufacturing equipment and components. They are also effective in reducing the costs of production, logistics, and waste disposal.
Plant and Office Initiatives
Renewable Energy Initiatives
We have set medium-term environmental goals of total CO₂ emissions at plants and offices by 70% (compared with fiscal year 2019) and rate of 100% renewable energy (electricity) usage at plants and offices by fiscal year 2031. The ratio of renewable energy used in all companies in fiscal year 2023 was 91%, which reduced CO₂ emissions by 76% compared with the amount in the reference fiscal year. This enabled us to achieve the goal of reducing total CO₂ emissions from plants and offices by 70% (compared with fiscal year 2019) ahead of the scheduled fiscal year of 2031. In Japan, all manufacturing sites, plants, and offices including tenants have completed introducing renewable energy. We plan to further introduce the system at our overseas offices.
Reduction in CO₂ Emissions through the Introduction of Renewable Energy
Example initiative
At Tokyo Electron Miyagi (Taiwa), monitors displaying the energy profile of renewable energy generated from solar panels have been set up at the entrance to the plant. At Tokyo Electron Kyushu (Koshi), renewable energy generation initiatives are being promoted, such as the sale of generated energy. In fiscal year 2023, a total of 4,110 MWh of renewable energy was generated in Japan.
Initiatives to Prevent Global Warming and Save Energy
We have brought in a number of initiatives to achieve our medium-term environmental goal at plants and offices, including energy-saving cleanroom operation, setting office air-conditioning at appropriate temperatures, introducing devices that offer superior energy-saving performance and bringing in renewable energy.
In fiscal year 2023, the introduction of renewable energy (electricity) made a significant contribution, and the CO₂ emitted by our energy sources*¹ was 32 kilotons (63％ decrease YoY). In addition, we managed to reduce by 4％ YoY the amount of energy used at our plants and offices per net sales. An increase in the amount of energy used to develop and evaluate products and increase production meant that our power consumption was 402 GWh (7％ increase YoY).
In fiscal year 2019, we revised*² and shared the per-unit basis for plants and offices in Japan to more appropriate levels based on the correlation between business operations and energy. As a result, the annual sustainability goal has been achieved at 6 of the 11 total plants and offices in Japan and overseas.
The emission coefficient for power consumption in Japan in fiscal year 2023 uses the post-adjustment emission coefficient on a per-electricity supplier basis, while the emission coefficients for power consumption overseas uses the emission coefficients in Emissions Factors 2019 edition issued by the International Energy Agency (IEA).
The per-unit basis is calculated by compound weighting using data on the number of development and evaluation machines, production volume, floor space, and man-hours in each region.
Energy Consumption and Energy Consumption per Net Sales
Changes in Power Consumption
Total CO₂ emissions reduction achieved by environment investments
Total energy cost reduction achieved through environmental investments
Example initiative 1
The introduction of a system to visualize clearly how much energy is saved at our plants and offices was completed at our major manufacturing sites in Japan in fiscal year 2022. Previously, energy consumption data had to be manually extracted and changes graphed by hand, but integrated management on the cloud has made it possible to check changes at any time. This has made it easier to check the deployment and effects of BKM* at each plant as well as study or implement measures.
More concretely, while in the past we were able to monitor increases and decreases in power consumption for entire business sites and buildings, now we are able to check increases and decreases for each piece of equipment such as refrigeration units, compressors, and lighting, making it easier to analyze and clarify the causes of increases and decreases in usage. In addition, this visualization system has made it possible to compare the effects of capital investment for energy conservation with pre-investment data for a more accurate understanding of the effects. We will accelerate our energy-conservation activities related to operations.
BKM: Best Known Method
Example initiative 2
Tokyo Electron BP holds "Energy Conservation Competitions" in which employees at each site are encouraged to offer energy- and resource-saving ideas that are feasible within three years, and excellent ideas are announced, reviewed, and praised. In March 2023, the fourth competition was held and "Optimization of transformers" presented by Tokyo Electron Technology Solutions (Fujii) won the top prize. It is expected that annual CO₂ emissions will be reduced by 30 tons when this idea is put into practice. Through the "Energy Conservation Competitions", we will continue activities to turn ideas into reality and discover more energy- and resource-saving measures.
Example initiative 3
At Tokyo Electron Technology Solutions (Fujii, Hosaka), evacuation lights are being replaced with LED ones. In addition, the lights in clean rooms are controlled so that they are turned off when no one is inside. This is also expected to reduce electricity consumption. These energy-saving initiatives are also being implemented at each plant and office.
Initiatives to Conserve Water Resources and Reduce Water Consumption
With the growing importance of water resource preservation, we use WRI Aqueduct* and freshwater resource quantity indicators to conduct water risk assessments in Japan and overseas. In addition, we confirm the status of water resource use in the supply chain, rainwater and wastewater management and goal setting with suppliers once a year.
We have established an annual sustainability goal of maintaining the same water consumption level of the base year (fiscal year of their choosing for each Japan and overseas operation). Our ongoing efforts to achieve these goals include reusing pure water from our manufacturing operations, installing water-saving devices, watering lawns with rainwater and implementing the intermittent operation of cafeteria faucets.
During fiscal year 2023, as a consequence of the operation of new buildings and an increase in water consumption associated with product development and evaluation, water consumption amounted to 1,495,000 ㎥, up 6％ YoY. However, water consumption per net sales was down 4％ YoY. Moreover, in terms of our goals at each plant and office in Japan and overseas, we achieved 9 of the 13 goals.
WRI Aqueduct: A water risk assessment tool developed by the World Resources Institute
Water Consumption and Water Consumption per Net Sales
Initiatives to Reduce Waste
As part of its initiatives to reduce waste, we are striving to limit the amount of waste generated and recycle. In addition to participating in the electronic manifest system*¹ to ensure proper waste management, we promote maintaining an appropriate amount of parts inventory, reusing cushioning material and waste separation activities. Furthermore, we are working to reduce waste processing costs by modifying space used for storing waste to increase storage capacity and reduce the frequency of collection.
As a result of these initiatives, in fiscal year 2023, we generated 271 tons of incinerated and landfill waste, and the recycling rate*² was 98.5%, achieving our goal of maintaining a recycling rate of 97％ or higher for the 167th consecutive year since fiscal year 2007. In addition, we have also maintained a high level of recycling of 88.7％ at our overseas plants and offices.
Electronic manifest system: A system for electronically tracking the flow of industrial waste instead of using paper-based manifests (i.e., paper forms for tracking industrial waste). The system uses a communications network of data processing centers, businesses that generate waste, and waste collection/disposal companies.
Recycling rate: (Recycled amount / Amount of waste generated)×CO₂
Example initiative
At Tokyo Electron Kyushu, pallets that are partly made from ocean-bound plastics (recycled plastics known as OBPs) are used to store products in stock. Environmental issues related to plastic waste have been drawing attention in recent years. In particular, marine plastic waste is posing serious problems. OBPs, which are plastic waste disposed of in land areas within 50 km from the sea may, if left uncollected, flow into the sea as marine plastic waste and contaminate the environment. We use pallets made from recycled OBPs to help prevent ocean pollution.
Management of Chemical Substances
We constantly monitor and manage our use and release of any chemical substances used in product development and manufacturing subject to the Japanese PRTR* law. Whenever we introduce a new chemical substance or change the way an existing substance is used, we check for environmental, health and safety risks beforehand and conduct appropriate processing after use such as by contracting expert vendors and using in-house processing facilities. In response to the Fluorocarbons Recovery and Destruction Law, we conduct simple checks, regular inspections and so on based on law in an effort to monitor the amounts of fluorocarbons filled and recovered.
PRTR: Pollutant Release and Transfer Register. A framework for tracking, tabulating and disclosing quantitative data on chemical substances that may be hazardous to human health and the ecosystem, including the amounts used and discharged into the environment and the amounts transferred (as part of waste) from the plants and offices
Biodiversity
Our business activities are supported by the benefits yielded from biodiversity. We recognize that our business activities have not an insignificant impact on biodiversity and thus carry out initiatives to conserve biodiversity. We set a single fiscal year goal of conducting ecosystem tours or conservation activities at our plants and offices in Japan at least twice a year. Results in fiscal year 2023 show that events were held a total of 22 times, attracting a total of 138 participants.
In fiscal year 2023, we formulated the commitments on biodiversity and forest conservation with the approval of the CEO.
Biodiversity and Forest Conservation Commitments
The benefits of biodiversity are essential for the sustainable development of society. However, human society’s activities are having a major impact on biodiversity.
Through “TEL’s Shared Value,” we are working to resolve social issues through business activities that make use of our expertise. We aim to realize “Net Positive Impact (NPI)”* across our entire value chain through ongoing initiatives to preserve biodiversity. We believe that promoting activities in partnership with our stakeholders will help to boost our corporate value in an ongoing manner. As part of these efforts, we aim to achieve zero deforestation through working proactively to protect forests, which are home to ecosystems comprising numerous organisms and which constitute important CO₂ sinks.
We make a map of biodiversity relationships based on the product life cycle assessments. We promote biodiversity initiatives based on the activity guidelines and the relationship map.
NPI: When loss of the natural environment cannot be avoided and the decision is instead taken to generate gains for the natural environment to offset the losses, ensuring that losses and gains are balanced constitutes “No Net Loss (NNL),” while going beyond this by ensuring that the gains outweigh the losses constitutes “Net Positive Impact (NPI).”
Interrelationship Map of Biodiversity Activities
Join the Taskforce on Nature-related Financial Disclosures(TNFD) Forum
In fiscal year 2023, we announced that we concur with the vision of the Taskforce on Nature-related Financial Disclosures(TNFD)*¹ and has joined the TNFD Forum, a group of institutions that support the activities of the taskforce.
TNFD is an international initiative established in June 2021 to support the transition to a nature-positive*² world, aiming to develop a risk management and disclosure framework for businesses with stakes in natural capital and biodiversity. The TNFD Forum was established in September 2021 as the taskforce’s support organization that provides expert insights and technical assistance to TNFD.
At TEL, we are assessing the impact on nature caused by our business activities and the risks of nature loss, and are working to disclose relevant information in an appropriate manner. We are also collaborating with our stakeholders to enhance natural capital and biodiversity through our entire value chain.
The Taskforce on Nature-related Financial Disclosures (TNFD) was launched in June 2021 with founding members including the United Nations Environment Programme Finance Initiative (UNEP FI), the United Nations Development Programme (UNDP), the World Wide Fund for Nature (WWF), and a British non-profit organization Global Canopy. With the aim of shifting global financial flows away from nature-negative outcomes and toward restoring biodiversity, the taskforce is developing a framework that drives businesses, institutions, and organizations to disclose risks and opportunities impacting natural capital and biodiversity.
Being “nature positive” means putting nature on the path to recovery by stopping and reversing the loss of biodiversity.
Example initiative
Tokyo Electron Miyagi has named a 4.2 ha area of prefectural forest in Yamato Town "Tokyo Electron Forest" as part of its efforts to nurture forests and preserve the environment, and has been conducting tree-planting activities (tree-planting events) since 2017. A total of 283 participants planted 324 trees in six years. In addition to planting trees and capturing trees, full-scale forest maintenance was carried out, including sorting out depleted trees and moving logs, and the participating children also had the opportunity to climb a cliff using ropes, make wreaths, and experience nature crafts.
In the sixth year of this activity, the forest, which was covered with dead and damaged trees before maintenance, is regaining its original appearance and has become like a park with a walking trail. In addition to the landscape, the number of shrimps, gentians, butterflies, and dragonflies in the ponds and puddles has increased, contributing to biodiversity.
Environmental Communication
Our environmental policy requires that we respond appropriately to the expectations of society. We promote initiatives for the environment while engaging in ongoing communication with all of our stakeholders.
In addition, to better promote environmental communication internally, we provide an environmental program for new employees and mid-career recruits, plus a refresher program for existing employees. In fiscal year 2023, approximately 8,600 employees in Japan participated in the refresher program for existing employees. We will continue to implement this program.
Example initiative 1
At Esashi Plant in Iwate, employees participate in activities of "Oshu Megumi Net", a citizens' environmental conference in Oshu City. In fiscal year 2023, they are promoting communication through activities such as delivering a lecture titled "Environmental Activities: Technology for Eco Life" and participating in nature observation activities with local residents.
Example initiative 2
As part of our enlightenment activities aimed at providing increased opportunities to consider biodiversity, eco-life, and the environment through taking photos and/or painting pictures, we have been holding the TEL Eco-Life Art and Photo Contest annually since 2009. The contest, which is held for employees and their families, has attracted more entries every year. As many as 1,665 entries were submitted in fiscal year 2023 from the entire Group companies worldwide, with a grand total of over 9,000 submissions over the past 14 years.
Example 1 of the TEL Eco-Life Art and Photo Contest
Example 2 of the TEL Eco-Life Art and Photo Contest
Green Procurement
Introducing Our Green Procurement
We are promoting, with the cooperation of our suppliers, the notion of "green procurement", which aims to give prior attention to purchasing parts, products, and materials that have been produced in a way that takes the environment into account. For details, please refer to the following "Green Procurement Guideline" and its appended documents.
Request for Provision of Environmental Information Regarding Delivered Products
We are conducting research on contained chemical substances used in all parts and products purchased from our suppliers.
Research on Contained Chemical Substance in Articles
We use chemSHERPA-AI* for the research on contained chemical substances in articles.
The tool of chemSHERPA-AI can be downloaded from https://chemsherpa.net/
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Logistics Initiatives
Environmental Considerations in Logistics
Because of worldwide environmental concerns such as global climate change and the rising demand to reduce the environmental burden of logistics activities, transportation regulations are becoming more stringent. We continue to adjust our logistics operations to meet these demands.
CO₂ Reduction Initiatives
As logistics regulations are tightened from the perspective of preventing global warming and addressing climate change, there is a growing demand to reduce the environmental impact of business activities. We have been actively implementing measures such as a modal shift* in transportation in Japan and overseas and the adoption of packaging methods that reduce environmental impact, as well as promoting activities designed to reduce the environmental impact of its logistics.
For logistics in Japan, we calculate and clarify CO₂ emissions within the scope defined by the Act on the Rational Use of Energy and Conversion into Non-Fossil Fuel, Etc. (Energy Saving Act). For logistics overseas, we calculate and clarify CO₂ emissions for both our Group companies and also for logistics in which our customers are serving as shippers.
Sauce: Tokyo Electron BP
In fiscal year 2023, we actively promoted the use of reinforced corrugated cardboard packaging and modal shifts to achieve our annual sustainability goal set in fiscal year 2021. Reinforced corrugated cardboard is lighter in weight, which is expected to reduce CO₂ emissions during transportation. It is also recyclable and has a lower environmental impact than wood. The rate of reduction of wood use was 17% in fiscal year 2023.
Furthermore, in fiscal year 2023, we set a new annual sustainability goal to further promote modal shifts and joint delivery and reduce CO₂ emissions from overall logistics (own delivery) by 10% (by fiscal year 2027), and developed activities that contributed to the achievement of this goal. In particular, we considerably increased the use of ferries between Osaka and Fukuoka in order to achieve the goal. As a result, CO₂ emissions due to domestic logistics were reduced by approximately 2,476 tons compared with the value calculated on the assumption that modal shifts and joint delivery are not implemented. This reduction amounts to 11.4 percent, and we achieved the above-mentioned goal ahead of schedule.
These initiatives were positively evaluated, and we and Tokyo Electron BP, a Group company, were nominated for commendation by the Director-General, Maritime Bureau, Ministry of Land, Infrastructure, Transport and Tourism in relation to the accreditation of the "Eco-ship Mark"*¹ for fiscal year 2023 organized by the Eco-ship modal shift*² business execution committee, as corporations that contribute to environmental measures through sea transportation, and were commended in May 2023.
Reduction Rate of Wood Use
Accreditation of the "Eco-ship Mark": The Eco-ship modal shift business execution committee organized by the Maritime Bureau of the Ministry of Land, Infrastructure, Transport and Tourism, and operators of ferries, RORO ships, container vessels, automobile vessels, etc. awards the "Eco-ship Mark" to cargo owners and logistics operators that contributed to the modal shift to marine transport, and the Director-General at the Maritime Bureau of the Ministry of Land, Infrastructure, Transport and Tourism grants an award every year to an operator that made a notable contribution.
Modal shift: Efforts to transform the means of transportation. Refers to the shift of transportation from car and air to rail and ship, which have lower environmental impacts.
Example initiatives
We are proactively promoting modal shifts to reduce environmental loads. In fiscal year 2023, we replaced more than 4,000 trucks used for transportation between Osaka and Fukuoka with ferries. Operation of Japan's first ferries for transporting liquefied natural gas has been started on this sea route. Because the amount of CO₂ emissions that occur during transportation is approximately 25% smaller than that of conventional ships, and due to the fact that ships only generate low environmental loads as they emit lower levels of sulfur oxides, we are actively using these ferries.
Tokyo Electron Miyagi has been making modal shifts to railways to transport components from suppliers in the Kansai district. In fiscal year 2023, they started to carry out modal shifts for transportation of components from suppliers in the Hokuriku and Kyushu districts. Because modal shifts will contribute to the mitigation of "year 2024 problems" that are expected to reduce the number of available truck drivers as a result of strengthening of overtime work regulations, we will continue to proceed with this initiative.
Resource-saving Initiatives
Because our products are precision equipment, they must be shipped with care and in clean conditions, requiring the use of wooden crates and cardboard boxes. To conserve some of these resources, We use recyclable cardboard boxes for packaging. After the equipment has been shipped and installed, casters and other specialized transport fixtures are collected and brought back to our factories for reuse. These are only a few examples of our resource-saving efforts.
Initiatives with Suppliers (E-COMPASS)
Example initiatives
As part of our E-COMPASS initiatives, we held a briefing session with all of our materials suppliers in March 2022, based on the notion that reinforcing our partnerships with our suppliers is key to the preservation of the global environment and to the data society which will be a growing reality in the years ahead. At this briefing session, we informed our suppliers of the status of our initiatives, and shared measures for mutual growth through co-creation with them as partners. We also conducted the “E-COMPASS Survey” to confirm matters including the state of suppliers’ environmentally technology development, suppliers’ activities for reducing the environmental burden of their operations, and the status of their products’ compliance with environmental laws and regulations. In December, we awarded three of our suppliers the status of “Environmental Partners” at TEL Partners Day, in recognition of their tremendous cooperation with the activities of E-COMPASS. In February 2023, 53 suppliers which are excellent in terms of compliance with environmental laws and regulations and CO2 emission reduction activities were certified as “Green Partners” as an expression of our feelings of respect and gratitude. In March, a briefing session and survey were carried out as a continuation of last year’s session and survey, and activities based on the results of these have been developed with suppliers.
Achieving net zero by fiscal year 2041 will require not only reductions in CO2 emissions within Tokyo Electron itself but also substantial reductions at our customers’ and suppliers’ production lines. To achieve this goal, we will continue to develop and enhance the E-COMPASS program as we move forward with our activities. We will work proactively to preserve the global environment across the entire supply chain through our partnerships with customers and suppliers.
