Identifying Material Issues
Tokyo Electron (TEL) identifies material issues that are important for further improving its corporate value over the medium- to long-term, taking into account social issues, the business environment, stakeholder expectations, and the company’s circumstances. For each material issue, we set medium-term and annual goals, and implement various projects aimed at achieving those goals.
While steady growth is forecast for the global economy, humans are also faced with various social issues, including abnormal climate conditions and natural disasters, conflicts between states and terrorism, water and food crises, population problems and cyberattacks.TEL is deepening its awareness of social issues throughout the value chain, giving consideration to SDGs, the United Nations Global Compact, RBA and recommendations from third party organizations.
SDGs: Sustainable Development Goals
The SDGs were adopted by the United Nations in 2015 as a universal set of goals for humanity to achieve by 2030. We have clarified the SDGs related to materiality and endeavor to achieve the SDGs through the development of our business.
With the arrival of the IoT era, applications for semiconductors are expanding further with the emergence of applications based on new technologies including artificial intelligence, AR and VR. Furthermore, opportunities for value creation are increasing in the field of FPD, with changes in technologies such as large screen and high resolution, and the spread of organic EL, which is accompanied by expansion in associated design and application areas. Consequently, semiconductors and FPDs are at a turning point, experiencing a new growth phase and playing a key role in social infrastructure. As technology becomes more sophisticated and diverse, semiconductor and FPD manufacturing equipment makers must have the foresight to develop innovative technologies and deliver them in a timely manner. Furthermore, maintenance and service to improve the productivity and lifespan of equipment is increasingly important.
Given the social and business environment in which TEL finds itself, we examined the risks and opportunities closely related to sustainable business development.
|Social trends||Risks for TEL||Opportunities|
|Environmental issues including climate change|
● Legal violations and non-
compliance with industry
codes of conduct
● Increases in business
● Reduction of operational costs
● Improvement of product environmental
performance and creation of business
|Evolution of technology|
● Reduction in product
● Reduction in customer
● Generating innovative products and
● Maintaining competitive advantage
|Changes in population trends|
● Securing human resources
● Decline in development
and support capability
|● Enhancing corporate competitiveness|
|Sustainable business management|
● Ethics and compliance
● Weakening of monitoring
and checking functions
● Highly effective governance
● Sound and highly transparent business
management that builds solid
relationships of trust with stakeholders
|Supply chain management|
● Weakening of supply system
● Worsened relations with
● Creation of new value through collaboration
● Establishment of sustainable procurement
Examination and Identification of Validity
TEL considers the importance of the issues it faces based upon opinions and expectations gained through communication with its stakeholders.
TEL has grasped the social and business environment, as well as the opinions of stakeholders, has analyzed risks and opportunities, and compared this with our Corporate Philosophy and Management Policies to identify material issues.
Taking advantage of our strengths as a manufacturing equipment maker with multiple products, we offer a variety of values to customers, including production of advanced devices, productivity maximization and environmental impact reduction. We believe that in this way, we can contribute to the realization of a more convenient and prosperous society. We have established three pillars of product competitiveness, responsiveness to customers and higher productivity in our medium-term management plan, and identified two additional supporting factors to make five material issues: people and workplaces, and management foundation.
Examination and Identification of Validity
TEL verified the validity of material issues at the Review Council, incorporating the opinions of external experts. As a result, we determined that product competitiveness, responsiveness to customers, higher productivity, people and workplaces and management foundation are appropriate as material issues for fiscal 2019. From a medium- to long-term perspective, TEL will promote efforts in these material issues and aim for further growth.
|Material issues||Medium-term goal||Priority themes|
|Product Competitiveness||Create strong next-generation products||● Tackling technological innovation|
|● Environmental contribution of products |
|Responsiveness to Customers||Become the best and sole strategic partner||● Solutions that create value for |
|● Improvement of customer satisfaction|
|Higher Productivity||Constantly pursue higher management efficiency||● Quality management|
|● Improvement of quality in the value |
|People and Workplaces||Maximize dreams and drive||● Diversity|
|● Career development|
|● Work-life balance|
|● Health and safety|
|Management Foundation||Build a management foundation for increasing value||● Governance and compliance|
|● Human rights|
|● Environmental management|
|● Supply chain management|
TEL establishes annual goals and medium-term goals, based on material issues and their priority themes. Initiatives aimed at the achievement of goals are promoted throughout the Group, and the results are linked to evaluation and improvement with the aim of increasing corporate value further.
* According to new per-unit basis after revision
*1 health age: An indication of the risk of lifestyle diseases by age based on the results of health checkups
*2 Per-unit basis: Calculated using complex weighting of the number of developed evaluation machines, units produced, floor area, and labor-hours for each district
*3 Per-unit basis: Calculated based on floor area and labor-hours, etc. for each district