Sustainability goals and result

Annual Goals for Each Material Issue

Reflecting on the priority themes in each material issue, we verified the results against the goals for fiscal year 2021 and set annual goals for fiscal year 2022.In setting each goal, we have clearly identified the corporate director responsible for achieving it, and we are working on various activities aimed at further enhancing our corporate value and contributing to the achievement of SDGs.

Sustainability goals and result

Fiscal Year 2021

Material issues Priority themes Annual goals Results
Product competitiveness Tackling technological innovation ・Ensure that 20% or more (three-year moving average) of all equipment models are new products for next-generation technologies ・23.6%
・Maintain the previous year’s global patent application rate (±10%) ・Maintained the previous year's rate (Achieved 79.8% in fiscal year 2020 and 74.3% in fiscal year 2021)
Environmental contribution of products ・Reduce per-wafer emissions of CO₂ by 20% by fiscal year 2025 (compared with fiscal year 2014) ・Reduced by 16% in fiscal year 2021 as compared with fiscal year 2014
Customer responsiveness Solutions that create value for customers ・Increase Tokyo Electron's value to customers ・Orders and sales both increased significantly from the previous fiscal year, driven by demand for smartphones and servers
・Increase sales-in-field solutions business by 5% or more from the fiscal year 2020 level ・Increased by 19.6% from previous fiscal year
Improvement of customer satisfaction ・Achieve evaluations of “Very Satisfied” or “Satisfied” for 100% of customer satisfaction survey responses ・96.7% (achieved in 29 out of 30 questions)
Higher productivity Continuous improvement of business operations ・Target a 10% improvement in operational efficiency as a medium- to long-term goal, achieve centralized data management through adoption of a new ERP*¹ system, and build a business foundation where employees can focus even more on high-value work
(1)Expand implementation of CRM*² and PLM*³, and
(2)adopt new ERP during fiscal year 2021
・Expanded CRM to multiple overseas subsidiaries
・Expanded PLM to multiple domestic manufacturing sites in Japan
・Almost completed preparations for adopting ERP
Quality management ・Check the impact of important non- conformance items on other equipment and thoroughly implement recurrence prevention measures ・Finished revising new QA-BOX operation rules
・Started regular meetings with the heads of all BU quality assurance divisions
・Implemented progress management for QA-BOX submission
Improvement of customer productivity/yield ・Promote Shift Left*⁴ (front-loading) activities for quality
(1)Increase engineer time for high-value work in upstream processes, and
(2)implement medium- to long-term action plans to continue to enhance quality assurance activities
(1)Completed each company's individual/common activity plans Each company is currently carrying out individual activities as planned Common activities: Formulated activity policy based on best practices Agreed on activity policy with the heads of each quality assurance division
(2)Formulated medium- to long-term plans Formulated plans, started activities
People and workplaces Diversity and inclusion ・Double the percentage of female managers and experts (with same roles and responsibilities as managers) by fiscal year 2022 from 2.0%*⁵ in fiscal year 2019 ・2.5% (Reference) Percentage of female managers: 2.2% (Japan), 5.2% (global)
Career development ・Foster a culture of learning and development in the workplace through
(1)Leader development programs,
(2)provision of personalized global learning opportunities, and
(3)support for career development throughout working life
(1)Increased number of leader training participants year-on-year change 104% (Japan)
(2)Increased number of external web based training courses taken year- on-year change 158% (Japan)
(3)Increased number of participants of career training for senior employees year-on-year 149% (Japan)
Work-life balance ・Reach at least 70% take-up rate of annual paid leave ・62.5% (Japan)
Health and safety ・Reduce gap between health age*⁶ and actual age by 1.5 points by fiscal year 2021 (as compared with fiscal year 2018) ・Reduced gap by 0.21 points (Japan)
・Reduce the number of workplace injuries per 200,000 work hours. Target: TCIR (the total case incident rate) is less than 0.5 ・Achieved 0.27
Management foundation Governance ・Continue to improve on issues identified in evaluations of the effectiveness of the Board of Directors ・Revised Board of Directors Regulations and established the Business Execution Meeting to improve the effectiveness of the Board of Directors
・Revised the Affiliated Companies Management Regulations from the perspective of strengthening group governance. Confirmed status of operations based on the regulations with each division
・Implemented SR*⁷ activities with institutional investors with an eye to shareholders'meeting proposals and ESG-related issues
・Held discussions at off-site meetings on medium- to long-term strategies
Risk management ・Promote an integrated risk management system throughout our Group,
(1)Adopt Control Self Assessment (CSA), and
(2) establish and operate a risk management committee
(1)Conducted assessments using checklists at overseas and domestic group companies, identified risks and examined countermeasures
(2)Established the Risk Management Committee and held meetings (Mar. 2021)
Compliance ・Achieve 100% recognition among employees concerning internal hotline
・Revise Code of Ethics, conduct basic annual training, and achieve pledge rate of 100%
・Conduct a compliance awareness survey
・Recognition of internal hotline: 68%
・Code of Ethics education and pledge rate: 98.8%
・Awareness survey (Trial survey planned for fiscal year 2022)
Environmental management ・Reduce energy consumption by 1% from the fiscal year 2020 level (per-unit basis*⁸) at each plant or office ・Achieved goal at 1 of 11 plants or offices
・Maintain water consumption (per-unit basis*⁹) at plants and offices at the fiscal year 2012 level in Japan and at individual base year levels overseas ・Achieved 10 of 13 goals
Supply chain management ・Implement supply chain CSR assessments for the following percentages of suppliers Material suppliers: Covering at least 80% of our procurement spend Logistics suppliers: 100% of customs -related operators Staffing suppliers: 100% of employment agencies and contracting companies (internal contractors)
・Implement supply chain BCP*10 assessments for the following percentages of suppliers Material suppliers: Covering at least 80% of our procurement spend
・Percentage of suppliers at which supply chain CSR assessments were implemented Material suppliers: Achieved 80% or more of our procurement spend Logistics suppliers: Achieved 100% of customs-related operators Staffing suppliers: Achieved 100% of employment agencies and contracting companies (internal contractors)
・Percentage of suppliers at which supply chain BCP assessments were implemented Material suppliers: Achieved 80% or more of our procurement spend

*1 ERP: Enterprise Resource Planning
*2 CRM: Customer Relationship Management
*3 PLM: Product Lifecycle Management
*4 Shift Left: Refer to p.17 and p.31
*5 Senior specialists were included in the 2.0% figure in fiscal year 2019
*6 An indication of the risk of lifestyle diseases in years, based on the results of health checkups
*7 SR: Shareholder Relations
*8 Per-unit basis: Calculated using complex weighting of the number of developed evaluation machines, units produced, floor area, and labor-hours for each district
*9 Per-unit basis: Calculated based on floor area and labor-hours, etc. for each district
*10 BCP: Business Continuity Plan

Fiscal Year 2022

Material issues Priority themes Annual goals Medium-term goal Relevant SDGs
Product competitiveness Tackling technological innovation ・Ensure that 20% or more (three-year moving average) of all equipment models are new products for next-generation technologies
・Maintain the previous year’s global patent application rate (±10%)
Create strong next generation products
SDGs 9 INDUSTRY, INNOVATION AND INFRASTRUCTURE
SDGs 13 CLIMATE ACTION
SDGs 17 PARTNERSHIPS FOR THE GOALS
Customer responsiveness Solutions that create value for customers ・Increase Tokyo Electron’s value to customers
・Increase sales-in-field solutions business by 5% or more from the fiscal year 2021 level
Be the sole strategic partner
SDGs 9 INDUSTRY, INNOVATION AND INFRASTRUCTURE
SDGs 12 RESPONSIBLE CONSUMPTION AND PRODUCTION
SDGs 17 PARTNERSHIPS FOR THE GOALS
Improvement of customer satisfaction ・Achieve evaluation of “Very Satisfied” or “Satisfied” for 100% of customer satisfaction survey responses*¹
Higher productivity Continuous improvement of business operations ・Target a 10% improvement in operational efficiency as a medium- to long-term goal, achieve centralized data management through adoption of a new ERP system, and build a business foundation where employees can focus even more on higher value work
(1)Adopt ERP at headquarters
(2)Prepare to adopt ERP at manufacturing sites in Japan and overseas subsidiaries
Constantly pursue higher management efficiency
SDGs 8 DECENT WORK AND ECONOMIC GROWTH
SDGs 12 RESPONSIBLE CONSUMPTION AND PRODUCTION
SDGs 17 PARTNERSHIPS FOR THE GOALS
Quality management ・Check the impact of important common issues and thoroughly implement measures to prevent recurrence of similar faults
・Verify the effects of strengthening the quality information environment
Improvement of customer productivity/yield ・Promote Shift Left (front-loading) activities for quality
・Identify risks and thoroughly implement countermeasures from the initial development stage (thorough prevention)
Management foundation Diversity and inclusion ・Implement initiatives to make the ratio of females in management positions equal to the ratio of females in the company over the medium term
・Implement initiatives to make the ratio of female recruits equal to or greater than the general ratio of females*² in each region
・Create an organizational system where even those from outside of Japan can take on corporate roles through the use of technology and shared global human resources systems
Build a strong management foundation for underpinning our business activities
SDGs 3 GOOD HEALTH AND WELL-BEING
SDGs 8 DECENT WORK AND ECONOMIC GROWTH
SDGs 10 REDUCED INEQUALITIES
SDGs 13 CLIMATE ACTION
SDGs 16 PEACE, JUSTICE AND STRONG INSTITUTIONS
SDGs 17 PARTNERSHIPS FOR THE GOALS
Career development ・Foster a culture of learning and development in the workplace through
(1)Leader development programs
(2)Provision of personalized global learning opportunities
(3)Support for career development throughout working life
Work-life balance ・Reach at least 70% take-up rate of annual paid leave
Health and safety ・Increase the percentage of employees receiving specific health guidance to 60% (figures based on the results of medical checkups up to the end of fiscal year 2024)
・Reduce the number of workplace injuries per 200,000 work hours Target: TCIR (the total case incident rate) is less than 0.5
Governance ・Continue to improve on issues identified in evaluations of the effectiveness of the Board of Directors
Risk management ・Promote an integrated risk management system throughout our Group
(1)Ongoing rollout of CSA
(2)Unified classification and response to risks to the entire Group
(3)Launch of internal education program Roll out in Japan in fiscal year 2022 and overseas in fiscal year 2023
Compliance ・Continuous cultivation of a compliance culture
(1)Provide Code of Ethics training and achieve a pledge rate of 100%
(2)Implement and improve a compliance survey
(3)Achieve 100% recognition of the internal hotline among employees
Environmental contribution of products ・Reduce per-wafer emissions of CO₂ by 30% (by fiscal year 2031, compared with fiscal year 2019)
・Reduce the amount of the use of wooden packaging materials by 50% (packaging for semiconductor production equipment, fiscal year 2024)
Environmental management ・Reduce total CO₂ emissions at plants and offices by 70% (by fiscal year 2031, compared with fiscal year 2019)
・Adopt 100% renewable energies at plants and offices (by fiscal year 2031)
・Reduce energy consumption by 1% from the fiscal year 2021 level (per- unit basis) at each plant or office
・Maintain water consumption (per- unit basis) at each plant and office at the fiscal year 2012 level in Japan and at individual base year levels overseas
Supply chain management ・Implement supply chain CSR assessments for the following percentages of suppliers Material suppliers: Covering at least 80% of our procurement spend Logistics suppliers: 100% of customs- related operators Staffing suppliers: 100% of employment agencies and contracting companies (internal contractors)
・Implement supply chain BCP assessments for the following percentages of suppliers Material suppliers: Covering at least 80% of our procurement spend

*1 For each question, average score is calculated for all customers who responded
*2 The ratio of females majoring in science or engineering in the case of engineers