Sustainability goals and results

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 2024

Goals for Fiscal Year 2025

Goals and Results for Fiscal Year 2024

Target Area	Annual Sustainability Goals	Results	Material Issues
Research and Development	Maintain the previous year’s global patent application rate*¹　 (±10 percentage points)	Maintained the previous year's rate　(CY2021:80.1％,CY2022:79.9％)	Best Products with Innovative Technology
Customer Responsiveness	Increase Tokyo Electron’s value to customers	While leading-edge capital investment was curtailed along with customer inventory adjustments, investments to increase production capacity for mature generations were brought ahead of schedule.	Best Products with Innovative Technology Best Technical Service with High Added Value Customer Satisfaction and Trust
Customer Responsiveness	Achieve evaluations of “Very Satisfied” or “Satisfied” for 100% of customer satisfaction survey responses*²	100%
Higher Productivity	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 Launch ERP introduction to overseas subsidiaries Start ERP introduction to manufacturing sites in Japan	Completed adoption of first ERP at overseas subsidiaries Completed adoption of first ERP at manufacturing sites in Japan	Quality Management
Quality	Check the impact of important common issues and thoroughly implement measures to prevent recurrence of similar faults	Continued and thoroughly implemented QA-BOX*³ operations Held regular monthly meetings Implemented horizontal deployment of cases posted in the QA-BOX across business units (BU) Conducted surveys in each BU on permeation, responded by deciding on a company-wide unified policy in consideration of risks Began monitoring activities after deciding on a company-wide unified policy Improved necessary system (tools)
Quality	Strengthen the information environment for more accurate quality status and promote improvement activities	Operated and thoroughly continued regular updates of Quality Dashboard Implemented plant inspections based on Quality Regulations (Quality TEL Manual/TEL Guidelines*⁴) for the improvement and establishment of quality rules Completed Tokyo Electron FE and Tokyo Electron Korea onsite audits Issued requests for improvement on issues and problems discovered during audits
Quality	Identify root causes of market failures and promote and strengthen Shift Left initiatives by thoroughly implementing countermeasure activities	Made visible risks from market failures Executed B-FMEA*⁵ strengthening activities with reference to specific plants Conducted evaluations and implemented deliberations for development across Groups
Quality	Extract risks from initial development stage and ensure countermeasures (ensure prevention before issues arise)	Implemented and shared beneficial improvement measures handled by each plant Confirmed issues that cannot be resolved with existing measures Planned countermeasures based on themes
Employees/Engagement	Employee retention rates Japan: 99%, Overseas: Higher than the industry average	Japan: 98.8% Overseas: Higher than the industry average (95.8%)	Respect for Human Rights Employee Engagement Ethical Behavior
Employees/Diversity, Equity & Inclusion	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*⁶ to 8% globally and 5% in Japan (by fiscal year 2027)	Strengthened career support for talent pipeline Ratio of female managers: 6.3% globally, 3.1% in Japan
Employees/Careers	Foster a culture of learning and development in the workplace through Leader development a culture of business ethics and compliance programs　 Provision of personalized global learning opportunities Support for career development throughout working life	Began training for newly appointed department managers and workshops for existing managers Provided an environment for learning by offering an array of LinkedIn Learning and business skills courses. Considered measures for “Raising Individual Career Awareness” to promote autonomous learning Prepared company-wide expansion of career education for employees in their early thirties. Planned seminars on raising career awareness targeting middle-ranking employees and managers.
Employees/Work-life Balance	Take-up rate of annual paid leave Japan: 75% or more Overseas: Equal to or better than the previous fiscal year’s results	Japan: 80.6% Overseas: 69.0% (previous fiscal year’s result: 65.6%)
Safety	Reduce the number of workplace injuries per 200,000 work hours Target: TCIR is less than 0.30	TCIR 0.15	Best Technical Service with High Added Value Safety First Operation
Corporate Governance	We are working at all times to establish an optimal and highly effective Board of Directors and an aggressive management execution system, and by continuously addressing issues based on evaluations of the effectiveness of the Board of Directors and input from institutional investors and other stakeholders, we will achieve solid corporate governance for enhancing corporate value over the medium to long term and sustainable growth. Seeking a Board of Directors with high effectiveness Audit & Supervisory Board System: Ratio of outside directors: One-third (including two females), Free and open discussions including corporate auditors Off-site meetings: For discussions on medium- to long-term strategies, issues, etc. (twice annually) CEO reports: Reports to the Board of Directors on the status of execution of key duties by the CEO (every Board of Directors meeting) CEO mission: Information is shared concerning the CEO’s mission for achieving the Medium-term Management Plan Representative director assessment closed sessions: Sessions including directors and Audit & Supervisory Board members but excluding the representative director (once annually) Operating rhythm supporting the execution of business Corporate Officers Meeting: The highest decision-making body on the executive side (once monthly) CSS (Corporate Senior Staff) meeting: Global, across-the-board coordination of company-wide business execution (four times annually) Quarterly review meeting: Monitoring the progress of the Medium-term Management Plan (four times annually)	Seeking a Board of Directors with high effectiveness As a company with an Audit and Supervisory Board System, we maintain a ratio of one-half outside directors (3 out of 6).　Continuing activities in the Nomination Committee with consideration for the majority The majority of director candidates proposed at the 61st Annual General Meeting of Shareholders are outside directors (4 out of 7) Off-site meetings: 2 times (August and February) At every Board of Directors meeting, in principle, the CEO explains important matters concerning business execution CEO mission: Shared with members of the Board of Directors Closed session on evaluation of representative directors: 2 times Operating rhythm supporting the execution of business Corporate Officers Meeting: 20 times CSS meeting: 4 times Quarterly review meeting: 4 times	Compliance Enterprise Risk Management
Risk Management	We are building and further improving a highly effective risk management system that supports a strong management foundation. We are enhancing risk management and compliance based on the slogan “Safety, Quality and Compliance. Our top priority. It’s our pride.” Together with establishing a dedicated Compliance Department at our headquarters and appointing a Chief Compliance Officer and Regional Compliance Head, we are also conducting assessments by external agencies and undertaking education. We are conducting supervision and monitoring through reports to the Corporate Officers Meeting—the highest decision-making body on the executive side—and the Board of Directors (twice annually). To conduct appropriate measures with certainty across the entire Group, we are identifying risks (12 risks in fiscal yaer 2024) expected in the execution of business centered on the Risk Management Committee and deploying them in the activities of each company. We are continuously conducting activities to foster awareness about safety, compliance and risk management, and reflecting the awareness of all executives and employees as well as their autonomous and specific initiatives in our human resource evaluation.	Establishment and implementation of risk management activities across Group companies using GRC tools*⁷ Continuously review risk scenarios considering the recent business environment and implement risk management activities based on 12 risks in fiscal year 2024 Implement initiatives to hold Risk Management Committee meetings and establish Risk Management Committees for each company to further strengthen the structure of each Group company Strengthen the organizational structure of compliance through regular meetings with the Ethics Committee and each company/local subsidiary. Consider introducing compliance assessments by external agencies Continued implementation of ethics, compliance and risk management trainings (training for newly assigned group leaders and General Managers)	Safety First Operation Quality Management Compliance Ethical Behavior Information Security Enterprise Risk Management
Risk Management	Establish a compliance system and ongoing fostering of corporate ethics/culture to prevent major incidents before they happen. Construction of a compliance promotion system Group-wide and increase sophistication of operating rhythm Revise and execute a system to spread awareness about compliance and change actions Sustained improvements and execution of programs based on compliance risk assessments Digital promotion of compliance work and programs	Discussion, planning and execution of risk management measures through regular discussions with the Ethics Committee and each company/local subsidiaries Training and awareness activities catering to targeted audiences (seminars for executives (competition law/insider trading), manager training, pledge of compliance with Code of Ethics, sharing examples of scandals, refurbished internal Global Compliance Web (available in 5 languages, website reconstructed as a global portal)) Promotion of compliance projects (related to permits and licensing processes, related to the Subcontract Act) Management of permit and licensing procedures, management of personal information, management of outsourcing companies, management of whistleblowing, digital promotion of legal amendments information	Compliance Ethical Behavior Enterprise Risk Management
Environment/Logistics	Reduce the usage ratio of wood packaging for products to 50% or less (packaging of semiconductor production equipment, by fiscal year 2024)	77.6% over the fiscal year (fourth quarter 73.6%)	Climate Change and Net Zero Product Energy Efficiency Customer Satisfaction and Trust Supplier Relationship
Environment/Plants and Offices	Reduce energy consumption (per-unit basis*⁸) by 1% from the previous fiscal year at each plant and office	Achieved goal at 2 of 11 plants or offices
Environment/Plants and Offices	Maintain water consumption (per-unit basis*⁹) at each plant and office at individual base year levels	Achieved 10 out of 13 goals
Supply Chain Management	Supply chain sustainability assessment implementation rate Material suppliers: Covering at least 85% 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 85% or more of our procurement spend Logistics suppliers: Achieved 100% of customs-related businesses Staffing suppliers: Achieved 100% of employment agencies and contracting companies (internal contractors)	Supplier Relationship Compliance Enterprise Risk Management
Supply Chain Management	Supply chain BCP*¹⁰ assessment implementation rate Material suppliers: Covering at least 85% of our procurement spend	Material suppliers: Achieved 85% or more of our procurement spend

Global patent filing rate: Percentage of inventions filed as a patent application in multiple countries

For each question, average score is calculated for all customers who responded

QA-BOX: Tool for the sharing and horizontal deployment of important quality-related information within our Group companies

TEL Manual/TEL Guidelines: Regulations based on company-wide quality policies set for each major business category, such as development, designed, manufacturing, and services

B-FMEA: Base-Failure Mode and Effect Analysis

Include individual contributors and employees reemployed after retirement

GRC tools: A system that contributes to managerial decision-making in a timely manner by systematically organizing multi-layered and complex corporate management functions and management information collected through the integration of Governance, Risk and Compliance (GRC) measures

Per-unit basis: Calculated using complex weighting of the number of developed evaluation machines, units produced, floor area and labor-hours for each district

Per-unit basis: Calculated based on floor area and labor-hours, etc., for each district

BCP: Business Continuity Plan