Environment
Our Approach to the Environment
Tokyo Electron aims to solve environmental issues through our leading-edge technology and services under the slogan of "Technology for Eco Life." We strive to contribute to the establishment of a sustainable society by reducing TEL's impact on the consumption of resources, on biodiversity, and on climate change by taking actions that both directly and indirectly contribute to the protection and conservation of the environment.
- Environmental Goals and Continuous Improvement
- We establish environmental goals and continual improvement of the environmental management system to enhance environmental performance throughout our product lifecycle.
- Compliance with Applicable Laws
- We continually enhance our knowledge of environmental issues to not only comply with applicable laws, but also set additional voluntary standards.
- Environmental Contribution with Product
- We develop environmentally complimentary products through our leading-edge technology. TEL cooperates with our customers and suppliers to strive for the prevention and improvement of environmental impacts to contribute to a sustainable society.
- Operational Environmental Impact Reduction and Preservation
- We quantitatively analyze and reduce the environmental impact of TEL global operations, with activity from all levels of employees and operations to prevent pollution and protect the environment.
- Collaboration and Cooperation with Stakeholders and Society
- We actively promote collaboration and cooperation with all our stakeholders to achieve mutual understanding and conformance to expectations.
Based on the above-mentioned policy, we strive to reduce the environmental impacts on the entire value chain of the product lifecycle (planning, development, designing, procurement, manufacturing, logistics, use by customers, maintenance services, and disposal of products). In addition, the lifecycle of our products covers the time they are at suppliers we procure from, contractors used for development, manufacturing, and logistics, and customers the products have an environmental impact at. We strive to conduct due diligence by grasping potential environmental risks when we engage in M&A or newly enter projects.
Environmental issues such as climate change are growing ever more crucial. To promote activities in the medium to long term that meet the environmental/ESG needs of its customers and other stakeholders, the Manufacturing Company Presidents’ Council, which includes the corporate director in charge of EHS, monitors and supervises progress related to environmental issues. A headquarters has been established, headed by the corporate director in charge of EHS, and promotes environmental activities across the entire Group. The Environment Council, made up of members appointed by the executives of the Group companies, sets targets related to environmental issues, monitors progress and also works to achieve its goals. Furthermore, to continuously promote our environmental activities, we have operated an environmental management system based on ISO 14001 since fiscal year 1998, primarily at our manufacturing subsidiaries. In March 2017, we acquired multi-site ISO 14001 certification for our plants and offices in Japan that had previously acquired certification separately. Coinciding with this multi-site certification, we have developed a standardized group format for environmental impact assessments, the identification of useful environmental aspects, environmental management programs and internal audit checklists. During fiscal year 2021, we established approximately 100 environmental goals for different levels across the entire Group and carried out these improvement activities. Any issues identified through these activities are reviewed by the Environment Council, reported to the Manufacturing Company Presidents’ Council and used for promoting environmental activities across the entire Group. Under such an environment management system, fiscal year 2021 was again free from environmental incidents, accidents, violations, and associated legal proceedings.
Environmental measures are growing even more crucial. We have established the Environment Promotion Department at our headquarters, headed by a corporate director in charge of the environment, which oversees multiple meetings to promote efforts to address medium- to long-term environmental issues across the entire Group. The details are as follows.
| Conference Name | Participants | Function | Meeting Frequency |
|---|---|---|---|
| Global Environment Council | Appointed members by the executives at headquarters and the Group companies | Set individual goals related to environmental issues, monitor progress, work to achieve our goals | Twice annually |
| TEL Corporate Environment Council | The GM in charge of the environment and department heads, etc. | The promotion of environmental activities across the entire Group, set company-wide goals | Appropriately |
| Council for the Regular Reporting of Environmental Activities (Since FY2022) | CEO, corporate directors in charge of the environment | Report on matters discussed at the Global Environment Council and the TEL Corporate Environment Council and review items for approval | Quarterly |
| Manufacturing Companies Presidents’Council* | Corporate directors in charge of the environment, etc. | Monitor and supervise progress related to environmental issues | Quarterly |
At the Manufacturing Companies Presidents’ Council, information is shared on business affairs and issues regarding environment, safety, quality, supply chain management, etc.
To continuously promote our environmental activities, we began operation of an environmental management system based on ISO 14001 since fiscal year 1998, primarily at our manufacturing subsidiaries. In March 2017, the entire Group obtained ISO 14001 certification together, which had previously been obtained at each plant and office in Japan. In accordance with this certification, we have identified environmental impact assessments and useful environmental aspects and are executing a standardized group format for environmental management programs and internal audit checklists.
In fiscal year 2022, as part of environmental management across the entire Group, we established a total of approximately 100 environmental goals for different levels and carried out these improvement activities. Any issues identified through these activities are reviewed by the Global Environment Council and reported to the Manufacturing Companies Presidents’ Council. We were once again free from environmental incidents, accidents, violations and legal proceedings in fiscal year 2022.
ISO 14001:2015 Certified Plants and Offices
| Company Name | Factory/Office name | Certification Date |
|---|---|---|
| Tokyo Electron | EHS Promotion Center (Fuchu Technology Center) | May. 1998 |
| Tokyo Electron Technology Solutions | Fujii Office/Hosaka Office/Tohoku Office | |
| Tokyo Electron Kyushu | Koshi/Ozu Office | |
| Tokyo Electron Miyagi | Taiwa Office | |
| Tokyo Electron (Kunshan) | - | Mar. 2013 |
| TEL Manufacturing and Engineering of America | Chaska Office | Mar. 2013 |
| North Chelmsford Office | May 2018 | |
| Tokyo Electron Korea | TEL Technology Center Korea, Balan Plant | Jul. 2014 |
Initiatives toward Environment
We are implementing a number of initiatives to build a carbon-free society. The first initiative aims at contributing toward higher performance and lower power consumption for semiconductor devices, and creating the societal shared value of balancing “Digital x Green” by promoting technological innovation. The second initiative is directed at saving energy during the operation of our equipment as well as at our plants and offices. To this end, we have established the Medium-term Environmental Goals for 2030 and have been taking actions for their attainment. The third initiative involves the establishment of E-COMPASS (Environmental Co-Creation by Material, Process and Subcomponent Solutions) aimed at building a sustainable supply chain. Through this initiative, we aim to work in closer partnership with the entire supply chain and strengthen our leadership in protecting the global environment. In addition, we are weighing the risks and opportunities that climate change presents to our business based on TCFD* framework, and are taking a number of appropriate actions while pursuing ongoing disclosures.
TCFD: Task Force on Climate-related Financial Disclosures
Environmental Risks and Opportunities
Various environmental issues affect our daily lives and corporate activities. Physical risks, such as rising average global temperatures, strong winds, disasters and water shortages caused by climate change and abnormal weather, are expected to damage assets, increase operating costs and impact the supply chain. In addition, legal risks including stronger environmental laws and regulations, more stringent regulations on greenhouse gas emissions and the introduction of carbon taxes are expected to lead to higher costs for associated measures.
At the same time, promoting environmental initiatives leads to more opportunities to sell environmentally friendly products and reduce operating costs. We also recognize that providing high-value-added products that contribute to higher performance and lower power consumption of semiconductors and FPDs leads to the building of an energy-saving society that makes the most of information technology, and thus provides an opportunity to improve corporate value.
Based on the requirements of ISO 14001, we identified and analyzed internal and external issues in relation to the environment, namely, our relationship with the climate, air quality and water quality. We also clarified the environmental needs and expectations of customers, suppliers, governments and employees and identified our compliance obligations as an organization. In addition, we define risks and opportunities to address as: (1) environmental management by reducing the environmental impact of our business activities, (2) compliance with applicable laws and (3) enhancing product competitiveness with the environmental contribution of products.
TCFD
Initiatives Related to Recommendations of the Task Force on Climate-related Financial Disclosures (TCFD)
Based on the TCFD recommendations, we examine the risks and opportunities that climate change poses to our business and take various response measures as we endeavor to make ongoing disclosures. In fiscal year 2022 , in addition to the previous fiscal year's study, we examined the 1.5°C scenario, which limits the average global temperature increase to less than 1.5°C above pre-industrial levels.
Status of Initiatives Related to Recommendations of the TCFD
Governance
We have established the Environment Promotion Department and the Corporate Sustainability Management Department at our headquarters, and the entire Group is pursuing initiatives for the TCFD recommendations.
Under the supervision of the CEO, the corporate director and executive officer in charge of the environment and sustainability give reports to the Board of Directors on our responses to climate change-related risks and opportunities and progress toward our goals and conduct reviews.
At the Global Environmental Council, comprised of members appointed by executives of headquarters and the Group companies, goals are set, progress is monitored and the achievement of these goals is promoted.
Strategy
We are conducting analysis that takes into account the following points in order to identify medium- to long-term risks and opportunities that climate change poses for our business.
- Location of plants and offices
- Occurrence of natural disasters caused by climate change and status of damages
- Demands from customers, industries and investors
- Government policies and regulations and taxation
- Technological trends relating to renewable energy and energy saving
- Climate change scenarios predicted by external agencies and research results
Under the 1.5°C scenario we identified transition risks including rising energy costs associated with fuel and energy taxes, and under the 4°C scenario we identified physical risks such as the impact of abnormal weather. Also, on the opportunity side we identified proactive initiatives to address climate change through R&D. In response to these risks and opportunities, we will implement the findings from our scenario analysis into our business strategies and establish medium- and long-term environmental goals, while also pursuing the adoption of renewable energy and the reduction of greenhouse gas emissions strategies across the entire supply chain.
We will increase our resilience (responsiveness to climate change) as a company by periodically reviewing the identified risks and opportunities and our responses thereto, and ensure that response measures are implemented.
Risk Management
We utilize enterprise risk management* to identify a wide range of risks arising in business activities, and classify “Environmental Issues” including climate change as a key risk having high impact and probability of manifestation. We formulate and execute measures to minimize this risk, monitor the effect of said measures and work to understand the status of risk control, and implement the PDCA cycle for management.
Short-, medium- and long-term company-wide risk management initiatives that related divisions and councils recommend are deployed to the facilities and divisions of the Group companies after approval by the Manufacturing Companies Presidents’ Council, which includes the corporate director in charge of the environment.
For Scope 1 and 2 CO₂ emissions, in addition to implementing measures to reduce CO₂ emissions at our key manufacturing sites in Japan with high emissions, we are pursuing the adoption of renewable energy on a global scale. For Scope 3 emissions, we recognize the importance of providing products that generate fewer CO₂ emissions because about 97% of the emissions in our entire value chain are generated during use of products after sale, so we are focusing on development of a range of environmental technologies.
We also formulate business continuity plans (BCPs) in anticipation of natural disasters caused by abnormal weather and other factors, and take measures with our suppliers to ensure that business operations can be maintained.
Metrics and Targets
We are pursuing the following initiatives for the development of a data-driven society and preservation of the global environment.
- With our semiconductor production equipment technology, we will contribute to enhancing the performance and reducing power consumption for semiconductor devices being used around the world
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Initiatives for our medium- and long-term environmental goals*¹
In order to achieve our long-term environmental goal of realizing net zero by 2050, we have established the following medium-term environmental goals and are carrying out various activities- Reducing our emissions: Reduce total CO₂ emissions at plants and offices by 70％ (by fiscal year 2031, compared with fiscal year 2019), a rate of 100% renewable energy usage at plants and offices (by fiscal year 2031), and reduce energy consumption by 1％ YoY at each plant and office (per-unit basis)
- Reducing other emissions: Reduce per-wafer emissions of CO₂ by 30％ (by fiscal year 2031, compared with fiscal year 2019)
- Reducing the volume of water resources used*² and the environmental burden of logistics*³, etc.
- We launched “E-COMPASS*⁴” in June 2021 as an initiative to build sustainable supply chains, and are promoting technological innovations for semiconductors, and reducing environmental impacts
Refer to Medium- and Long-term Environmental Goals
Refer to Initiatives to Reduce Water Consumption
Refer to Logistics Initiatives
E-COMPASS: Refer to E-COMPASS Initiative
Anticipated Risks and Opportunities of Climate Change Impact and Our Response
- Timeline: Short-term = five years or less; Medium-term = 2030; Long-term = 2050
- Scenarios used: 1.5°C scenario (1.5°C temperature increase), 4°C scenario (4°C temperature increase)
- Scope: The entire Group as well as the entire value chain including upstream and downstream
| Type (Scenario) | Timeline of Risk Manifestation | Anticipated Risks and Opportunities | Our Response |
|---|---|---|---|
| Transition Risks (1.5°C scenario) | Short- to medium-term |
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| Medium- to long-term |
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| Physical Risks (4°C scenario) | Short- to long-term |
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| Medium- to long-term |
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| Opportunities (Common) | Short- to long-term |
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| Medium- to long-term |
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Carbon tax: We referred to the International Energy Agency (IEA) Net Zero Emissions by 2050 Scenario for the increase in tax associated with GHG emissions. 1 U.S. dollar was converted as 115 yen
CO₂Emissions Across the Value Chain
Based on our environmental slogan “Technology for Eco Life,” we aim to resolve environmental problems through leading technology and reliable services, understand the environmental impact generated throughout our entire value chain and promote business activities to reduce that impact. Our total CO₂ emissions of Scope 1 and Scope 2 is 90 kilotons, while Scope 3 as the sum of upstream and downstream activities accounts for a total of 29,020 kilotons, approximately 99.7％ of the total. Of this, CO₂ emissions when using products is 28,254 kilotons, about 97％ of the total. This is why we consider the development of products with low CO₂ emissions during operation to be important.
- Scope 1: Direct greenhouse gas (GHG) emissions from use of fuel and gas we owned or controlled
- Scope 2: Indirect GHG emissions from use of electricity, steam and heat we purchased
- Scope 3*: Emissions from corporate value chains (excluding Scope 1 and 2 emissions), such as product transportation, employee business travel and major outsourced production processes
Scope 3 is divided into upstream activities, which include emissions associated with purchased or procured products and services, and downstream activities, which include emissions associated with sold products and services.
Medium- and Long-term Environmental Goals
In order to further strengthen its initiatives toward the environment in its products, plants and offices, we have set the following medium-term environmental goals for fiscal year 2031.
Goals and Initiatives to Achieve Net Zero*¹
The notation of each calendar year in the figure indicates the fiscal year (e.g., CY2020 is from April 1, 2020 to March 31, 2021)
Refer to CO₂ Emissions across the Value Chain
Total CO₂ emissions (compared with fiscal year 2019)
CO₂ emissions per wafer (compared with fiscal year 2019)
CO₂ emissions
In fiscal year 2022, we identified CO₂ emissions during the use of our reference products and set a roadmap for each product with goals for fiscal year 2031. In addition to the status of electricity, process gases and chemicals, water and other resources used in the production and use of each product, factors such as the effects of plans to reduce their use and the reduction effects of productivity improvements were also considered in setting this roadmap. The CO₂ emissions per wafer for products shipped in fiscal year 2022 were reduced by 11％ compared to the base year.
Reduction in CO₂ Emissions and Rate of Renewable Energy (Electricity) Usage through the Introduction of Renewable Energy
We have started to introduce renewable energy (electricity) at plants and offices in Japan, U.S. and China. As a result, the ratio of company-wide renewable energy use in fiscal year 2022 was 60％, and CO₂ emissions were reduced by 49％ from the base year. In fiscal year 2023, we plan to complete the introduction of renewable energy at all of our manufacturing sites in Japan, as well as at other overseas plants and offices. Through these efforts, we expect to achieve a 90% rate of renewable energy usage and a 74％ reduction in CO₂ emissions for fiscal year 2023. We will continue to develop activities that contribute to the achievement of our medium-term environmental goals by fiscal year 2031 for our products, plants and offices.
In January 2022, we applied for SBT* certification of our greenhouse gas emission reduction goals, and we plan to receive certification within fiscal year 2023. We are working together as one on initiatives to achieve the following long-term goal by 2050: “As a leading company in environmental management, Tokyo Electron works actively to conserve the global environment. We strive to contribute to the development of a dream-inspiring society by proactively promoting the reduction of environmental burden of both our facilities and products. We strive to contribute to the development of a dream-inspiring society by promoting evolutionary manufacturing technologies that effectively reduce the power consumption of electronic products.”
Science Based Targets (SBT): The Paris Agreement aims to limit global warming to well below 2°C, preferably to 1.5°C, compared to pre-industrial levels. SBT is an international initiative to certify greenhouse gas emission reduction targets set by companies for the next five to 15 years, consistent with the levels required by the Paris Agreement.
Product Initiatives
Products that Contribute to a Sustainable Society
Of the CO₂ emissions from our value chain, emissions during product use account for about 97％. We believe that the low energy consumption of products is important as part of our social responsibility as a semiconductor production equipment manufacturer and are working on environmentally friendly product design. In fiscal year 2022, we promoted activities based on guidelines for calculating CO₂ emissions* and a roadmap for key models to reach our annual sustainability goal of reducing per-wafer CO₂ emissions by 30％ by fiscal year 2031 (compared with fiscal year 2019) for the key models of each business unit. As a result, the CO₂ emissions of equipment shipped were reduced by 10.7％ compared to baseline equipment.
In addition, we use the Green Transformation (GX) Monitor, which captures information on energy use including electricity, water and nitrogen, as well as equipment operating status, and turns it into a database, to visualize energy consumption information during product use. Specifically, we have introduced a system that allows us to check equipment operating status and energy consumption information in chronological order through our intranet, and are planning to expand the scope of this system going forward.
Product CO₂ Emission Reduction
We will continue to work to further raise environmental awareness and incorporate environmental technologies as important added value in our technological strategies, thus contributing to the reduction of the environmental impact of society as a whole.
Example initiative
At the TFF Engineering Division of Tokyo Electron Technology Solutions, development is conducted with the life cycle perspective in mind. Specifically, we define product life cycle costs and clarify relationships with the effects of development elements. Additionally, we share an environmental technology roadmap with related divisions and monitor progress while developing environmental products based on this roadmap.
Initiatives for Product Environmental Laws and Regulations
In order to comply with each country’s environmental laws and regulations pertaining to products, we promptly collect information and promote proactive responses. An example of our response to EU REACH*¹ is that we conduct surveys with our suppliers as appropriate on the presence of any chemical substances in articles and disclose that information to customers. In addition, we have been introducing the chemSHERPA*² format since fiscal year 2021 and collected information from suppliers on chemical substances in concentrations in the parts per billion (ppb*³). As a response toward GHS*⁴ requirements, we provide the necessary safety data sheets (SDS*⁵) and labels when supplying chemical products to customers, in addition to promoting the local procurement of chemical products.
To comply with the frequently revised environmental laws and regulations, we continue to offer “Product Environment Compliance” training to all employees, and provide suppliers with information related to the relevant environmental laws and regulations.
We will continue to grasp each country’s environmental laws and regulations rapidly and strive to respond appropriately.
EU REACH: An EU regulation pertaining to the Registration, Evaluation, Authorisation and restriction of Chemicals
chemSHERPA: A data entry support tool for appropriately communicating information on chemical substances in products across the entire supply chain, and a common system for communicating information on chemical substances contained in products
ppb: parts per billion (1×10-9)
GHS: Globally Harmonized System of Classification and Labelling of Chemicals
SDS: Safety Data Sheet. Refers to the document containing hazard information about chemical substances that is issued when a company transfers or provides chemical substances, or products containing chemical substances, to another company
Product Reuse and Recycling
With the advent of the Internet of Things (IoT), semiconductors are in greater demand and are becoming more diverse than ever. This has driven a corresponding rise in the need for more varied semiconductor production equipment. As a leading manufacturer of semiconductor equipment, TEL is strongly encouraging reuse and recycling of equipment and components by marketing refurbished TEL equipment and offering modification services to customers who already have TEL equipment installed. Our refurbished equipment operations start with procuring used equipment from the market, which takes place either directly or through leasing companies. This equipment is then properly tested and refurbished, before being offered to customers as TEL Certified Used Equipment.
Our equipment modification services boost the productivity of installed equipment by maintaining and improving its quality and availability. Through these approaches, we address our customers’ cost, speed, and performance needs, while also contributing to waste reduction and resource conservation and utilization. These efforts help reduce the use of resources and CO2 emissions associated with procuring and manufacturing equipment and components. They are also effective in reducing the costs of production, logistics, and waste disposal.
Plant and Office Initiatives
Renewable Energy Initiatives
We have set a medium-term environmental goal of 100％ renewable energy sources at our plants and offices by fiscal year 2031. In fiscal year 2022, we began introducing renewable energy (electricity) at our sites in Japan, U.S. and China, bringing our use of renewable energy company-wide to 60％. As a result, CO2 emissions dropped by 49％ from the base year of fiscal year 2019.
Example initiative
At Tokyo Electron Miyagi (Taiwa) and Tokyo Electron Technology Solutions (Fujii, Hosaka), monitors displaying the energy profile of renewable energy generated from solar panels have been set up at the entrances to the plants. At Tokyo Electron Kyushu (Koshi), renewable energy generation initiatives are being promoted, such as the sale of generated energy. In fiscal year 2022, a total of 3,890 MWh of renewable energy was generated in Japan.
Initiatives to Prevent Global Warming and Save Energy
We have brought in a number of initiatives to achieve our medium-term environmental goal at plants and offices, including energy-saving cleanroom operation, setting office air-conditioning at appropriate temperatures, introducing devices that offer superior energy-saving performance and bringing in renewable energy.
In fiscal year 2022, the introduction of renewable energy (electricity) in Japan, U.S. and China made a significant contribution, and the CO₂ emitted by our energy sources*¹ was 86 kilotons (49％ decrease YoY). In addition, we managed to reduce by 26％ YoY the amount of energy used at our plants and offices per net sales. An increase in the amount of energy used to develop and evaluate products and increase production meant that our power consumption was 377 GWh (6％ increase YoY).
In fiscal year 2019, we revised*² and shared the per-unit basis for plants and offices in Japan to more appropriate levels based on the correlation between business operations and energy. As a result, the annual sustainability goal has been achieved at 7 of the 11 total plants and offices in Japan and overseas.
The emission coefficient for power consumption in Japan in fiscal year 2022 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).
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.
Energy Consumption and Energy Consumption per Net Sales
Total Reduction Effect
Total Reduction Amount
Example initiative1
The introduction of a system to visualize clearly how much energy is saved at our plants and offices was completed at our major manufacturing sites in Japan in fiscal year 2022. Previously, energy consumption data had to be manually extracted and changes graphed by hand, but integrated management on the cloud has made it possible to check changes at any time. This has made it easier to check the deployment and effects of BKM* at each plant as well as study or implement measures
BKM: Best Known Method
Example initiative2
Tokyo Electron Technology Solutions (Fujii) has installed equipment to reduce electrical resistance in the substation equipment of some production buildings and saved energy by reducing current loss. As a result, the power consumption of the production buildings where this equipment is installed is expected to be reduced by approximately 7％ per year, and the energy-saving effect for the office as a whole is expected to be equivalent to approximately 1％.
Changes in Power Consumption
Initiatives to Reduce Water Consumption
With the growing importance of water resource preservation, we use WRI Aqueduct*¹ and freshwater resource quantity indicators to conduct water risk assessments in Japan and overseas. In addition, we confirm the status of water resource use in the supply chain, rainwater and wastewater management and goal setting with suppliers once a year.
We have established an annual sustainability goal of maintaining the same water consumption level of the base 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 2022, as a consequence of the operation of new buildings and an increase in water consumption associated with product development and evaluation, water consumption amounted to 1,417,000 m3, up 1％ YoY. However, water consumption per net sales was down 29％ YoY. Moreover, in terms of our goals at each plant and office in Japan and overseas, we achieved 7 of the 14 goals.
In recognition of these efforts, we were selected as a prestigious A List company in the CDP*² Water Security Category of the survey in December 2021.
WRI Aqueduct: A water risk assessment tool developed by the World Resources Institute
CDP: An international environmental non-profit organization (NPO) founded in the United Kingdom that conducts surveys on climate change and water security measures on private companies and municipalities and publishes the results
Water Consumption and Water Consumption per Net Sales
Example initiative
Tokyo Electron Taiwan has been actively implementing water conservation activities as a countermeasure against droughts in Taiwan in fiscal year 2022. We reduced the amount of water consumption at faucets on each floor (toilets and office kitchenettes) and for watering lawns, as well as setting air-conditioners in offices at higher temperatures and using automatic on/off functions to reduce the amount of water used for cooling. As a result, we managed to reduce the amount of water consumption by an estimated 20 m³/day. These activities resulted in an 11％ reduction in water consumption in fiscal year 2022 compared to fiscal year 2021.
Initiatives to Reduce Waste
As part of its initiatives to reduce waste, we are striving to limit the amount of waste generated and recycle. In addition to participating in the electronic manifest system*¹ to ensure proper waste management, we promote maintaining an appropriate amount of parts inventory, reusing cushioning material and waste separation activities. Furthermore, we are working to reduce waste processing costs by modifying space used for storing waste to increase storage capacity and reduce the frequency of collection.
As a result of these initiatives, in fiscal year 2022, we generated 270 tons of incinerated and landfill waste, and the recycling rate*² was 98.1%, achieving our goal of maintaining a recycling rate of 97％ or higher for the 16th consecutive year since fiscal year 2007. In addition, we have also maintained a high level of recycling of 91.0％ at our overseas plants and offices.
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.
Recycling rate: (Recycled amount / Amount of waste generated)×100
Example initiative
Tokyo Electron Technology Solutions (Tohoku) is working to recycle materials from resin pallets used during the transportation as cargo as well as reduce the CO₂ emissions associated with the processing of these pallets.
Previously, damaged resin pallets were crushed and recycled as the heat energy generated during the processing. However, in fiscal year 2022, the material from 20 tons of waste resin pallets was recycled by outsourcing to a processing company capable of recycling the resin pallets as raw materials. In addition, by outsourcing the recycling to a processing company closer to the office, the CO₂ emissions used to transport these materials were limited.
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* 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 such as 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 2022, none of our plants or offices had fluorocarbon leakages requiring notification.
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) from 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.
Our business activities are supported by the benefits yielded from biodiversity. We recognize that our business activities have not an insignificant impact on biodiversity and thus carry out initiatives to conserve biodiversity. We set a single fiscal year goal of conducting ecosystem tours or conservation activities at our plants and offices in Japan at least twice a year. Results in fiscal year 2022 show that events were held a total of 16 times, attracting a total of 87 participants.
Example Initiatives
Tokyo Electron Technology Solutions (Tohoku) conducts surveys of the natural environment in the area surrounding the office. In fiscal year 2022, we conducted a survey to determine the impact on the growth and habitats of plants and animals caused by factors such as changes in the surrounding environment due to the construction of a new building, as well as tree-planting activities and other activities conducted by plants and offices. As a result, we confirmed that a mountain foothill-like environment with a mixture of trees, grasslands and ponds is expanding. We also confirmed that many species of plants, mammals and birds are present, and that there have been no major changes since the previous survey (2016–2017).
We will continue to maintain the rich natural environment that is home to a diverse range of organisms as well as contribute to the preservation of plants and animals throughout the entire region.
Environmental Communication
Our environmental policy requires that we respond appropriately to the expectations of society. We promote initiatives for the environment while engaging in ongoing communication with all of our stakeholders.
In addition, to better promote environmental communication internally, we provide an environmental program for new employees and mid-career recruits, plus a refresher program for existing employees. In fiscal year 2022, approximately 11,000 employees in Japan participated in the refresher program for existing employees. We plan to expand this program overseas in fiscal year 2023.
Example Initiatives1
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 Initiatives2
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.
Green Procurement
Introducing Our Green Procurement
We are promoting, with the cooperation of our suppliers, the notion of "green procurement", which aims to give prior attention to purchasing parts, products, and materials that have been produced in a way that takes the environment into account. For details, please refer to the following "Green Procurement Guideline" and its appended documents.
Request for Provision of Environmental Information Regarding Delivered Products
TEL is conducting research on contained chemical substances used in all parts and products purchased from our suppliers.
Research on Contained Chemical Substance in Articles
TEL has been used chemSHERPA-AI* for the research on contained chemical substances in articles.
The tool of chemSHERPA-AI can be downloaded from https://chemsherpa.net/
If you need more details about the research process, please contact us using the Sustainability inquiry form.
chemSHERPA-AI : The information transmission sheet to be used to communicate information about chemical substances contained in products
Logistics Initiatives
Environmental Considerations in Logistics
Because of worldwide environmental concerns such as global climate change and the rising demand to reduce the environmental burden of logistics activities, transportation regulations are becoming more stringent. We continue to adjust our logistics operations to meet these demands.
CO₂ Reduction Initiatives
As logistics regulations are tightened from the perspective of preventing global warming and addressing climate change, there is a growing demand to reduce the environmental impact of business activities. We have been actively implementing measures such as a modal shift* in transportation in Japan and overseas and the adoption of packaging methods that reduce environmental impact, as well as promoting activities designed to reduce the environmental impact of its logistics.
For logistics in Japan, we calculate and clarify CO₂ emissions within the scope defined by the Act on the Rational Use of Energy. For logistics overseas, we calculate and clarify CO₂ emissions for both our Group companies and also for logistics in which our customers are serving as the shippers.
Reduction Rate of Wood Use
In fiscal year 2022, CO₂ emissions increased relatively both in Japan and overseas due to an increase in production and shipments. However, in logistics in Japan, we actively deployed a modal shift which resulted in a CO₂ emissions reduction of approximately 317 tons. In fiscal year 2022, we promoted the use of reinforced corrugated cardboard packaging to achieve our annual sustainability goal set in fiscal year 2021. Reinforced corrugated cardboard is lighter in weight, which is expected to reduce CO₂ emissions during transportation. It is also recyclable and has a lower environmental impact than wood. The rate of reduction of wood use was 9% in fiscal year 2022, and 13％ for the quarter from January to March 2022.
In fiscal year 2023, we set a new annual sustainability goal to further promote modal shifts and joint delivery and reduce CO₂ emissions of overall logistics (own delivery) by 10％ (by fiscal year 2027) and are developing activities that contribute to the achievement of this goal.
Modal shift: Efforts to transform the means of transportation. Refers to the shift of transportation from car and air to rail and ship, which have lower environmental impacts.
Resource-saving Initiatives
Because our products are precision equipment, they must be shipped with care and in clean conditions, requiring the use of wooden crates and cardboard boxes. To conserve some of these resources, We use recyclable cardboard boxes for packaging. After the equipment has been shipped and installed, casters and other specialized transport fixtures are collected and brought back to our factories for reuse. These are only a few examples of our resource-saving efforts.
Supply chain Initiative“E-COMPASS”
We have introduced a new sustainable supply chain initiative called E-COMPASS, which stands for Environmental Co-Creation by Material, Process and Subcomponent Solutions.
E-COMPASS aims to align our products and its entire operations more closely with its environmental mandates, strengthening the company’s ties with business partners and solidifying its industry leadership by promoting co-creation throughout the supply chain to pave the way for a sustainable future. We will utilize every management resource at its disposal to drive the major trends of digitalization and the greening of society by actively endeavoring to preserve the global environment throughout the supply chain.
Example Initiatives
In fiscal year 2022, we held the E-COMPASS briefing session for suppliers where, in addition to informing them of the status of our initiatives, we also shared measures for mutual growth through co-creation with our suppliers. We also conducted the “E-COMPASS Survey” to confirm matters including the state of suppliers’ environmentally conscious product development and the status of their products’ compliance with environmental laws and regulations. Based on these results, we will discuss response measures with our suppliers and aim to further enhance the green performance of the industry as a whole.
