Sustainability goals and result

Annual Sustainability Goals for Each Material Issues

Tokyo Electron is identifying the priority themes for each material issue, setting annual sustainability goals for each fiscal year, and understanding and verifying the progress of results.

We have also clearly identified the persons responsible for each goal, and by conducting various activities to achieve said goals, we are in turn contributing to the SDGs and further enhancing our corporate value.

Annual Sustainability Goals and Results

Goals and Results for Fiscal Year 2022

Material issues Priority Themes Annual Sustainability 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
  • 24.1%
  • Maintain the previous year’s global patent application rate*¹ (±10 percentage points)
  • Maintained the previous year's rate (Achieved 74.3% in fiscal year 2021 and 74.6% in fiscal year 2022)
Customer Responsiveness Solutions that create value for customers
  • Increase Tokyo Electron’s value to customers
  • Both orders and sales increased significantly due to higher demand for semiconductors
  • Increase sales-in-field solutions business by 5% or more from the fiscal year 2021 level
  • Increased by 33% from previous fiscal year
Improvement of customer satisfaction
  • Achieve evaluations of “Very Satisfied” or “Satisfied” for 100% of customer satisfaction survey responses*²
  • 100%(All 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 enterprise resource planning (ERP) system, and build a business foundation where employees can focus even more on higher value work
  • ①Adopt ERP at headquarters
    ②Prepare to adopt ERP at manufacturing sites in Japan and overseas subsidiaries
①Completed adoption of ERP at headquarters
②Implemented preparations to adopt ERP at manufacturing sites in Japan and overseas subsidiaries
Quality management
  • Check the impact of important common issues and thoroughly implement measures to prevent recurrence of similar faults
  • Continued and thoroughly operated QA-BOX*³
  • Held regular monthly meetings to decide how to respond to issues posted on the QA-BOX and ensure that the entire Group is involved
  • Verify the effects of strengthening the quality information environment
  • Continued to regularly update and operate the Quality Dashboard*⁴
  • Conducted surveys and set KPIs for effectiveness verification
Improvement of customer productivity/yield
  • Promote Shift Left*⁵ (front-loading) activities for quality
  • Reported at the Quality Council on measures*⁶ and issues due to rework after defects occur
  • The Quality Domain Subcommittee has been working to improve the environment for strengthening analytical capabilities and promoting the improvement of equipment and parts quality
  • Identify risks and thoroughly implement countermeasures from the initial development stage (thorough prevention)
  • Examine and define what the quality domain aims to be
Management Foundation Diversity and inclusion
  • Conduct a diversity-conscious talent pipeline (plan for developing human resources for the succession planning) and achieve the goal of increasing the ratio of female in management positions
  • Identified the talent pipeline in each organization
  • Identified the gap between the medium-term target and the actual status of the ratio of female managers
  • Implement initiatives to make the ratio of female recruits equal to or greater than the general ratio of females*⁷ in each region
  • Increased ratio of female engineers hired in April 2022 to 12% from 6% in the previous year (Japan)
  • 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
  • Implemented a reporting system mechanism that operates globally for some functions
Career development
  • Foster a culture of learning and development in the workplace through
  • ①Leader development programs
    ②Provision of personalized global learning opportunities
    ③Support for career development throughout working life
①Conducted leader training (e.g., management skills training) Total: 425 participants (Japan)
②Conducted external web-based education Total: 988 participants (Japan)
③Conducted generation-specific career training Total: 371 participants (Japan) Number of Career Counseling Room users: 98 (Japan)
Work-life balance
  • Reach at least 70% take-up rate of annual paid leave
  • 64.6%(Japan)
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)
  • Strengthened promotion of specific health guidance to eligible persons to improve the implementation rate by increasing opportunities for interviews by enhancing online interviews
 
  • Reduce the number of workplace injuries per 200,000 work hours
    Target: the total case incident rate (TCIR) is less than 0.50
  • 0.30
Governance
  • Continue to improve on issues identified in evaluations of the effectiveness of the Board of Directors
  • Reported to and discussed with the Board of Directors on the status of sustainability, human capital, intellectual property, and internal audit
  • Conducted external evaluation to strengthen internal audit system
  • Developed Shareholder Relations (SR) activities with institutional investors with an awareness of general shareholders' meeting proposals and sustainability-related issues
  • Increased off-site meetings from once to twice a year to discuss medium- to long-term strategies and the governance system
Risk management
  • Promote an integrated risk management system throughout our Group
  • ①Ongoing rollout of Control Self-Assessment (CSA)
    ②Unified classification and response to risks to the entire Group
    ③Launch of internal education program Roll out in Japan in fiscal year 2022 and overseas in fiscal year 2023
  • Continued operation of the PDCA cycle throughout the entire Group (quarterly monitoring of risk catalog, semi-annual meetings of the Risk Management Committee
  • Conducted assessments by external organizations on the risk catalogs that centralize risks for the entire group
  • Conducted workshops for management class and elementary web-based education for employees
Compliance
  • Continuous cultivation of a compliance culture
  • ①Provide Code of Ethics training and achieve a pledge rate of 100%
    ②Implement and improve a compliance survey
    ③Achieve 100% recognition of the internal hotline among employees
  • 91.6%
  • Reviewed the objectives and details of the survey based on the results of the third-party assessment to implement the survey
  • 91.6%
Environmental contribution of products
  • Reduce per-wafer emissions of CO₂ by 30%
    (by fiscal year 2031, compared with fiscal year 2019)
  • Reduced by 10.7% (compared with fiscal year 2019)
  • Reduce the amount of the use of wooden packaging materials by 50%
    (packaging for semiconductor production equipment, by fiscal year 2024)
  • Reduced by 8.6% (switchover percentage to reinforced cardboard)
Environmental management
  • Reduce total CO₂ emissions at plants and offices by 70%
    (by fiscal year 2031, compared with fiscal year 2019)
  • Reduced by 48.5% (compared with fiscal year 2019)
  • Rate of 100% renewable energy usage at plants and offices
    (by fiscal year 2031)
  • 60.3% (electricity switchover percentage)
  • Reduce energy consumption by 1% YoY at each plant and office (per-unit basis*⁸)
  • Achieved goal at 7 of 11 plants or offices
  • Maintain water consumption (per-unit basis*⁹) at each plant and office at the fiscal year 2012 level in Japan and at individual base year levels overseas
  • Achieved 7 of 14 goals
Supply chain management Implement supply chain sustainability 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)
  • 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)
Implement supply chain BCP*10 assessments for the following percentages of suppliers
  • Material suppliers: Covering at least 80% of our procurement spend
  • Material suppliers: Achieved 80% or more of our procurement spend

*1 Global patent filing rate: Percentage of inventions filed as a patent application in multiple countries
*2 For each question, average score is calculated for all customers who responded
*3 QA-BOX: Refer to Measures to Prevent Quality Problems from Occurring and Recurring
*4 Shift Left: Shift Left andEnsuring Self-process Assurance Systems and Promoting Shift Left
*5 Self-process Assurance: Refer to Ensuring Self-process Assurance Systems and Promoting Shift Left
*6 An indication of the risk of lifestyle diseases in years, based on the results of health checkups
*7 The ratio of females majoring in science or engineering in the case of engineers
*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

Goals for Fiscal Year 2023

Material Issues Priority Themes Annual Sustainability Goals Initiatives to the SDGs
Product Competitiveness

Continuously create high value-added next-generation products
Tackling technological innovation
  • Increase research and development (R&D) investment to be 1 trillion yen or more over 5 years (fiscal year 2023 to 2027)
  • Maintain the previous year’s global patent application rate (±10 percentage points)
SDGs 9 INDUSTRY, INNOVATION AND INFRASTRUCTURE
SDGs 13 CLIMATE ACTION
SDGs 17 PARTNERSHIPS FOR THE GOALS
Customer Responsiveness

Strong relationship based on trust
/Sole strategic partner
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 2022 level
SDGs 9 INDUSTRY, INNOVATION AND INFRASTRUCTURE
SDGs 12 RESPONSIBLE CONSUMPTION AND PRODUCTION
SDGs 17 PARTNERSHIPS FOR THE GOALS
Improvement of customer satisfaction
  • Achieve evaluations of “Very Satisfied” or “Satisfied” for 100% of customer satisfaction survey esponses
Higher Productivity

Pursuit of operational efficiency
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 high-value work
  • ①Launch ERP introduction to overseas subsidiaries
    ②Prepare for ERP introduction to domestic manufacturing sites
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
  • Strengthen the information environment for more accurate quality status and promote improvement activities
Improvement of customer productivity/yield
  • Identify root causes of market failures and promote and strengthen Shift Left (front-loading) initiatives by thoroughly implementing countermeasure activities
  • Identify risks and thoroughly implement countermeasures from the initial development stage (thorough prevention)
Management Foundation

Build a strong management foundation that underpins our business activities
Diversity and inclusion
  • Recruit and develop world-class human resources regardless of nationality, age, gender, etc., in order to realize an optimal organization and optimal placement of the appropriate personnel to execute our business strategy
  • Conduct a diversity-conscious talent pipeline (plan for developing human resources) for succession planning and achieve the goal of increasing the ratio of female managers*¹ to 8% globally and 5% in Japan (by fiscal year 2027)
  • Implement initiatives to make the ratio of female recruits equal to or greater than the general ratio of females in each region
  • Create an organizational structure where even those from outside of Japan can take on corporate roles through the use of technology and shared global human resources systems
  • Implement a personnel exchange program for engineers at overseas subsidiaries and domestic manufacturing sites
  • Share the message of top management's commitment to promoting diversity and inclusion and its continued dissemination
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
  • ①Leader development a culture of business ethics and compliance
    ②Provision of personalized global learning opportunities
    ③Support 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 is less than 0.50
Governance
  • Continue to improve on issues identified in evaluations of the effectiveness of the Board of Directors
Risk management
  • Further strengthen the PDCA cycle
  • Continue to implement internal education programs
  • Implement company-wide risk management tools
Compliance
  • Continue to foster a culture of business ethics and compliance
  • ①Strengthen efforts to continuously communicate the CEO message and foster a culture of business ethics and compliance
    ②Continue to improve and implement a compliance program*² based on compliance risk assessments
    ③Systematic implementation and effective review of various compliance training programs
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)
  • Reduce CO₂ emissions of overall logistics (own delivery) by 10%
    (by fiscal year 2027)
Environmental management
  • Reduce total CO₂ emissions at plants and offices by 70%
    (by fiscal year 2031, compared with fiscal year 2019)
  • Rate of 100% renewable energy usage at plants and offices(by fiscal year 2031)
  • Reduce energy consumption by 1% YoY at each plant and office (per-unit basis)
  • 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 sustainability assessments for the following percentages of suppliers
  • Material suppliers: Covering at least 85% of our procurement spend
  • Logistics suppliers: 100% of customs-related operators
  • 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 85% of our procurement spend

*1 Include experts in the number of managers
*2 Compliance program: Refer to Compliance System

169 Targets of the SDGs