Plant and Office Initiatives

Initiatives to Prevent Global Warming and Save Energy

As our medium-term environmental goal, we want to reduce total CO2 emissions by 70% by fiscal year 2031 (compared with fiscal year 2019) at our plants and offices, and have set the goal of reducing energy consumption by at least 1% year-over-year at each of our plants and offices. To achieve this goal, we have brought in a number of initiatives, including our energy-saving clean room operation, setting office air conditioning at appropriate temperatures, introducing devices that offer superior energy-saving performance, and bringing in renewable energy. As a result of these activities, we managed to reduce by 10% year-over-year the amount of energy used at our plants and offices per net sales in fiscal year 2021. In addition, the increase in the amount of energy used to develop and evaluate products and increase production meant that our power consumption was 355 GWh (12% increase YoY), and the CO2 *1 emitted by our energy sources was 169 kilotons (9% increase YoY). In addition, in fiscal year 2019, we revised the per-unit basis for plants and offices in Japan to more appropriate levels based on the correlation between business operations and energy, sharing these and putting them into practice. Specifically, 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. As a result, the goal has been achieved at 1 of the 11 total plants and offices in Japan and overseas.

■ Example initiative 1
We are bringing in a system at our manufacturing sites in Japan to make it clear how much energy is saved at our plants and offices. Previously, we used to graph changes by extracting data by hand, but now, through integrated management on the cloud, we can check changes at any time, as well as check the deployment and effects of BKM*2 at each plant and study or implement measures. This system is scheduled to be fully in place by fiscal year 2022.
■ Example initiative 2
The new manufacturing wing that started operation at the Tokyo Electron Technology Solutions (Fujii Office) in August 2020 uses energy-saving air-conditioning equipment, allowing it to save an expected 30% of energy or more in terms of floor area.
■ Example initiative 3
At Tokyo Electron Kyushu (Koshi Office), heat source chillers that used to be controlled, managed and run independently have been switched to integrated operation. This is expected to save about 470 MWh and 170 t- CO2 annually going forward.

1 The emission coefficient for power consumption in Japan in fiscal year 2021 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).
2 BKM: Best Known Method

Initiatives to Reduce Water Consumption

Initiatives to Reduce Water Consumption
With the growing importance of water resource preservation in global environmental initiatives, we have established a goal of keeping water consumption at the same level or below that of the baseline year (fiscal year 2012 for plants and offices in Japan and a fiscal year of their choosing for each 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 2021, as a consequence of new buildings coming online and an increase in water consumption associated with product development and evaluation, water consumption amounted to 1,397,000 m3 , up 7% year-over-year. Moreover, in terms of our goal of maintaining water consumption at the baseline level (per-unit basis) at each plant and office, we achieved 10 of the 13 goals. Additionally, an estimated 1,195,000 m3 of wastewater was discharged in fiscal year 2021.

Initiatives to Reduce Waste

To curb the amount of waste generated and to recycle it wherever possible, we promote initiatives to reduce waste. In addition to participating in the electronic manifest system*1 to ensure proper waste management, we are engaged in maintaining an appropriate amount of parts inventory and in reusing cushioning material. We are also achieving lower waste processing costs by promoting waste sorting activities and by modifying space used for storing waste to increase storage capacity and reduce the frequency of collection. In fiscal year 2021, we surveyed waste disposal operators in Japan using a unified on-site checklist, and we shared the results. As a result of these initiatives, in fiscal year 2021, we generated 183 tons of incinerated and landfill waste, and the recycling rate*2 was 98.8%, achieving our single-year goal of maintaining a recycling rate of 97% or higher for the 15th consecutive year since fiscal year 2007. We have also maintained a high level of recycling of 95% at our overseas plants and offices.

■ Example initiative
At the Chaska Office of TEL Manufacturing and Engineering of America, wood recycling is encouraged, and in addition, packaging materials that would normally be sent to landfills are converted to heat or power generation materials. The recycling rate was 85% in fiscal year 2020 but climbed 14 points in fiscal year 2021 to reach 99%.

1 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.
2 Recycling rate: (Recycled amount/Amount of waste generated) × 100

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*1 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 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. In fiscal year 2021, none of our plants or offices had fluorocarbon leakages requiring notification.

1 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) off the plants and offices

Biodiversity

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

Activity Guideline and Map of Biodiversity Relationships

The TEL Group sets activity guidelines (as below) and makes a map of biodiversity relationships based on our own product life cycle assessments. We promote biodiversity initiatives based on the activity guidelines and the relationship map.

Example Initiatives

In fiscal year 2021, TEL carried out activities with the goal of conducting at least two ecosystem tours or protecting acticities at factories and offices in Japan.

As a result. a total of 18 ecosystem tours and protecting activities were held, with a total of 52 people participating.

Environmental Communication

TEL’s environmental policy requires that we foster mutual understanding and a cooperative partnership with our wide-ranging stakeholders to appropriately respond to their expectations. Therefore, it is critical for us to maintain close communication with our stakeholders when implementing environmental measures.

Example Initiatives - 1

In both 2014 and 2015, Esashi plant in Iwate invited its neighbors (representatives of community associations) and local government representatives to the 6th Environmental Debriefing for the Local Community. To help the local stakeholders better understand TEL’s environmental activities, the Esashi Plant also held a lecture entitled "TEL’s Environmental Management" at an environmental skill-building seminar for local businesses in Oshu City, Iwate Prefecture. In February 2016, a TEL representative gave a lecture entitled “Technology for Eco-Life” at the 2nd Environmental Business Seminar held in Sendai City, Miyagi Prefecture to further enhance communication with our stakeholders.

Example Initiatives - 2

As part of our activities to raise environmental awareness, TEL has 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 998 entries were submitted in 2020 from TEL Group companies worldwide, with a grand total of over 6,000 submissions over the past 12 years.