Environment

Our Approach to the Environment

Tokyo Electron(TEL) 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.

  1. 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.

  2. 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.

  3. 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.

  4. 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.

  5. 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.

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.

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

The various issues related to the environmental impact on our daily lives and the business activities of companies. Physical risks, such as rising average global temperatures, strong winds, disasters, and water shortages caused by climate change and abnormal weather, heighten the risks in business, such as damage to assets, increased operating costs, and impacts on the supply chain. In terms of legal risks, we recognize that stronger environmental laws and regulations, more stringent regulations on greenhouse gas emissions, the introduction of carbon taxes, and so on will lead to higher costs for associated measures. At the same time, promoting environmental initiatives leads to more opportunities to sell outstanding, environmentally friendly products, reduce operating costs, and further improve corporate value. As a participant in the semiconductor and flat panel display (FPD) industry, by leveraging Tokyo Electron’s advanced technological prowess to create added value, we can contribute to the creation of semiconductor and FPD products with low power consumption and the building of an energy-saving society that makes the most of information technology.

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 the compliance obligations of our group. From this information, we defined the following as its risks and opportunities to address: (1) environmental management by reducing the environmental impact of its 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)

We are pursuing ongoing disclosures and initiatives based on the TCFD framework and relating to risks and opportunities that climate change presents to our business.

Status of Initiatives Related to Recommendations of the TCFD

Governance

Each of our corporate directors for EHS and CSR is working under the supervision of the CEO to monitor progress of goals related to our response to climate change.

With the establishment of the EHS Promotion Department and CSR Operations Department at headquarters, these activities are being driven by the entire Group. At the Environmental Council, comprised of members appointed by executives of the Group companies, company-wide goals are set, progress is monitored and the achievement of these goals is promoted.

Strategy

Utilizing the framework of the TCFD recommendations, we identified the risks and opportunities of climate change that will impact business over the medium- to long-term. We have evaluated the quantitative impact on business from some of those risks and opportunities, and we aim to continue quantifying others going forward as we investigate relevant measures.

Risk Management

Through the Manufacturing Company Presidents’ Council, we approve company-wide risk management initiatives, from short-term to long-term, that related divisions and councils recommend, and then apply those initiatives to the facilities and divisions of the Group companies.

For Scope 1*¹ and 2*² CO2 emissions, we are adopting renewable energy from a global perspective, including the implementation of measures at our key manufacturing sites in Japan with high emissions.

For Scope 3*³ emissions, we recognize the importance of providing products that generate fewer CO2 emissions because about 88% of the emissions in our entire value chain are generated during use of products after sale, so we are focusing on the development of a range of environmental technologies.

We also formulate business continuity plans in anticipation of natural disasters caused by abnormal weather and other factors, and take measures with our suppliers to ensure business operations can be maintained.

Metrics and Targets

To further reinforce our initiatives toward improving environmental performance of products and conserving the environment at our plants and offices, we revised our medium-term environmental goals in December 20204. While supporting the advancement of information and communications technology through the provision of our semiconductor and FPD production equipment, we are also committed to achieving new environmental goals in keeping with our Corporate Philosophy: “We strive to contribute to the development of a dream-inspiring society through our leading-edge technologies and reliable service and support”.

Examples of Climate Change (Risks and Opportunities) Impacting Business over the Medium-to Long-term
Scenario

Scenario Type Details
2°C
temperature increase
Transition risks
  • Increased energy costs in line with taxes on fuel and energy Assuming our greenhouse gas (GHG) emissions and use of renewable energy remain at fiscal year 2021 levels, if a carbon tax were applied, we estimate our costs would increase by 1.1 billion yen/year by fiscal year 2026 (assuming a tax of 6,000 yen per ton CO2) and 2.6 billion yen/year by fiscal year 2041 (14,000 yen per ton CO2)
  • Decreased net sales if unable to meet customers' requirements and demands for environmental initiatives
  • Reduced reputation among investors, NGOs and local communities if
    response to climate change and other environmental issues is delayed
4°C
temperature increase
Physical risks
  • Impacts on us, our suppliers and customers by abnormal weather (net sales decrease as a result of supply chain disruptions, operation stoppages, production/shipping delays and other factors)
Common Opportunities
  • Accelerated efforts to create new value, including innovation toward
    development of low-GHG products and services, and equipment and
    technologies that contribute toward the manufacture of low-power
    consumption devices.
  • Gaining superiority and business opportunities through proactive initiatives
    for climate change and adding value to the market
  • Higher productivity by streamlining operations and reducing related
    environmental impacts
  • Securing a competitive advantage by building resilience (responsiveness
    to climate change) into global operations, including working to adopt
    renewable energy, and improving corporate value through these initiatives
  1. *1Scope 1: Direct GHG emissions from use of fuel and gas we owned or controlled
  2. *2Scope 2: Indirect GHG emissions from use of electricity, steam and heat we purchased
  3. *3Scope 3: Emissions from corporate value chains (excluding scope 1 and 2 emissions), such as product transportation, employee business travel and major outsourced production processes
  4. *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.
  5. *4Revision of mediumterm environmental targets: Sustainability Report Refer to p. 50.

CO2Emissions Across the Value Chain

We will work to grasp the environmental impact throughout the value chain and develop business activities that are conscious of reducing this impact. Based on our environmental slogan “Technology for Eco Life,” we aim to resolve environmental problems through leading technology and reliable services.

Our total CO2 emissions of Scope 1 and Scope 2 is 186 kilotons, while Scope 3 accounts for a total of 6,222 kilotons, approximately 97% of the total. Of this, CO2 emissions when using products is 5,668 kilotons, about 88% of the total. This is why we consider the development of products with low CO2 emissions during operation to be important.

Medium- and Long-term Environmental Goals

In order to further strengthen our initiatives toward the environment in our products, plants and offices, the contents of the
medium-term environmental goals for fiscal year 2031 were revised in December 2020. In the goals for products, the reference year for per-wafer CO2 emissions was changed from fiscal year 2014 to fiscal year 2019. In addition, in the goals for plants and offices, the total CO2 emissions reduction goal was changed from 20% reduction to 70% reduction while reaching a rate of 100% renewable energy usage. At present, we are working on new initiatives toward achieving these revised goals. Specifically, we are planning to introduce renewable energy at our plants and offices in Japan, the United States and China starting from fiscal year 2022. This will bring our use of renewable energy company-wide to over 50% while dropping our CO2 emissions by 40%. In terms of products, we are moving ahead with understanding the amount of CO2 emissions during the use of standard equipment and creating a roadmap. We are rolling out activities toward achieving our goals based on this.

We have set the following as a long-term goal to achieve by 2050: “As a leading company in environmental management, we strive to contribute to the development of a dream-inspiring society by proactively promoting the reduction of environmental burden of both our products, plants and offices, and at the same time, providing evolutionary manufacturing technologies that effectively reduce the power consumption of electronic products.” We are working on initiatives for this at a company-wide level.

Product Initiatives

Products that Contribute to a Sustainable Society

Of the CO2 emissions from our value chain, emissions during product use account for about 88%. For this reason, we have made it a key corporate objective to promote environmentally friendly product design and lower the energy consumption of our products. In fiscal year 2021, we moved ahead with setting out a roadmap for key models to reach our medium-term environmental goal to reduce per-wafer CO2 emissions by 30% by fiscal year 2031 (compared with fiscal year 2019) for the key models of each business unit, and have established guidelines for calculating CO2 emissions that include the amounts of process gases and chemical substances to use, as well as the area, volume and mass occupied by equipment, in addition to our existing ones for energy and water. Based on these guidelines, we have begun estimating CO2 emission levels for equipment using our base year (fiscal year 2019), and have also started studying environmental technology strategies. As we work to further raise environmental awareness, we will continue to incorporate environmental technologies as an important added value in our technological strategies through various activities.

Example initiative

In our Cellcia™ series of test systems, we have improved the cooling circuits in the cooling chiller, increasing efficiency and boosting cooling capacity by 30%. This has enabled us to make the cooling chiller smaller, reducing our equipment footprint*¹. In addition, we have brought in new functions to automatically switch off heaters and chillers inside our Precio™ series of wafer probers when idling.

Initiatives for Product Environmental Laws and Regulations

In order to comply with each country’s environmental laws and regulations pertaining to products, we proactively collect
information and take appropriate action as required. An example of our efforts for EU REACH*² is that we properly investigate and disclose information on the presence of any chemical substances in articles. We introduced the chemSHERPA*³ format in fiscal year 2021 and collected information on chemical substances for concentrations in the parts per billion (ppb*⁴). As an effort toward GHS*⁵ requirements, we provide safety data sheets (SDS*⁶) when selling chemical products. We also promote the local procurement of chemical products and effectively address laws and regulations. In explaining and addressing the frequently revised environmental laws and regulations, we continue to offer “web-based training for Product Environment Compliance” to all employees, and we provide suppliers with information on the relevant environmental laws and regulations. We will continue to monitor each country’s environmental laws and regulations rapidly and regulations and strive to take propriate action.

*1 Footprint: The overall area a piece of equipment takes up on a flat surface when seen from directly above
*2 EU REACH: An EU regulation pertaining to the Registration, Evaluation, Authorization, and restriction of CHemicals
*3 chemSHERPA: A data entry support tool for appropriately managing information on chemical substances in products across an entire supply chain
*4 ppb: parts per billion (1 × 10⁻⁹)
*5 GHS: Globally Harmonized System of Classification and Labelling of Chemicals
*6 SDS: Safety Data Sheet (Safety Data Sheet refers to the document containing hazard information about chemical substances that is issued when a company transfers or provides chemical substances, 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 as a medium-term environmental goal the use of 100% renewable energy sources at our plants and offices by 2030. To reach this goal, we are planning to introduce renewable energy at our sites in Japan, the United States and China, starting from fiscal year 2022. This will bring our use of renewable energy company-wide to over 50%, while dropping our CO2emissions by 40%.

As an initiative toward in-house generation of renewable energy, at Tokyo Electron Miyagi (Taiwa Office) and Tokyo Electron Technology Solutions (Fujii Office, Hosaka Office), renewable energy generated from solar panels is used to power the plants, and monitors displaying their energy profile have been set up at the entrances to the plants. At Tokyo Electron Kyushu (Koshi Office), generated energy is sold, helping to prevent global warming. In fiscal year 2021, we generated a total of 4,068 MWh of renewable energy in Japan. In addition, Tokyo Electron U.S. Holdings has continued to purchase green power from external sources, amounting to 4,980 MWh in fiscal year 2021.

Initiatives to Prevent Global Warming and Save Energy

As our medium-term environmental goal, we want to reduce total CO2 emissions by 70% by fiscal year 2031 (compared with fiscal year 2019) at our plants and offices, and have set the goal of reducing energy consumption by at least 1% year-over-year at each of our plants and offices. To achieve this goal, we have brought in a number of initiatives, including our energy-saving clean room operation, setting office air conditioning at appropriate temperatures, introducing devices that offer superior energy-saving performance, and bringing in renewable energy. As a result of these activities, we managed to reduce by 10% year-over-year the amount of energy used at our plants and offices per net sales in fiscal year 2021. In addition, the increase in the amount of energy used to develop and evaluate products and increase production meant that our power consumption was 355 GWh (12% increase YoY), and the CO2*¹ emitted by our energy sources was 169 kilotons (9% increase YoY). In addition, in fiscal year 2019, we revised the per-unit basis for plants and offices in Japan to more appropriate levels based on the orrelation between business operations and energy, sharing these and putting them into practice. Specifically, 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. As a result, the goal has been achieved at 1 of the 11 total plants and offices in Japan and overseas.

Example initiative1

We are bringing in a system at our manufacturing sites in Japan to make it clear how much energy is saved at our plants and offices. Previously, we used to graph changes by extracting data by hand, but now, through integrated management on the cloud, we can check changes at any time, as well as check the deployment and effects of BKM*² at each plant and study or implement measures. This system is scheduled to be fully in place by fiscal year 2022.

Example initiative2

The new manufacturing wing that started operation at the Tokyo Electron Technology Solutions (Fujii Office) in August 2020 uses energy-saving air-conditioning equipment, allowing it to save an expected 30% of energy or more in terms of floor area.

Example initiative3

At Tokyo Electron Kyushu (Koshi Office), heat source chillers that used to be controlled, managed and run independently have been switched to integrated operation. This is expected to save about 470 MWh and 170 t-CO2 annually going forward.

*1 The emission coefficient for power consumption in Japan in fiscal year 2021 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).
*2 BKM: Best Known Method

Initiatives to Reduce Water Consumption

With the growing importance of water resource preservation in global environmental initiatives, we have established a goal of keeping water consumption at the same level or below that of the baseline 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 2021, as a consequence of new buildings coming online and an increase in water consumption associated with product development and evaluation, water consumption amounted to 1,397,000 m³, up 7% year-over-year. Moreover, in terms of our goal of maintaining water consumption at the baseline level (per-unit basis) at each plant and office, we achieved 10 of the 13 goals. Additionally, an estimated 1,195,000 m³ of wastewater was discharged in fiscal year 2021.

Initiatives to Reduce Waste

To curb the amount of waste generated and to recycle it wherever possible, we promote initiatives to reduce waste. In addition to participating in the electronic manifest system*¹ to ensure proper waste management, we are engaged in maintaining an appropriate amount of parts inventory and in reusing cushioning material. We are also achieving lower waste processing costs by promoting waste sorting activities and by modifying space used for storing waste to increase storage capacity and reduce the frequency of collection. In fiscal year 2021, we surveyed waste disposal operators in Japan using a unified on-site checklist, and we shared the results. As a result of these initiatives, in fiscal year 2021, we generated 14,997 tons of incinerated and landfill waste in Japan, and the recycling rate*² was 98.8%, achieving our single-year goal of maintaining a recycling rate of 97% or higher for the 15th consecutive year since fiscal year 2007. We have also maintained a high level of recycling of 95% at our overseas plants and offices.

*1 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.
*2 Recycling rate: (Recycled amount/Amount of waste generated) × 100

Example initiative

At the Chaska Office of TEL Manufacturing and Engineering of America, wood recycling is encouraged, and in addition, packaging materials that would normally be sent to landfills are converted to heat or power generation materials. The recycling rate was 85% in fiscal year 2020 but climbed 14 points in fiscal year 2021 to reach 99%.

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 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 2021, 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) off 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.

Example Initiatives

In fiscal year 2021, TEL carried out activities with the goal of conducting at least two ecosystem tours or protecting activities at factories and offices in Japan.

Environmental Communication

TEL’s environmental policy requires that we foster mutual understanding and a cooperative partnership with our wide-ranging stakeholders to appropriately respond to their expectations. Therefore, it is critical for us to maintain close communication with our stakeholders when implementing environmental measures.

Example Initiatives - 1

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 Initiatives - 2

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

Tokyo Electron(TEL) is 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/Open New Window.
If you need more details about the research process, please contact us using the Corporate Responsibility 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. TEL continues to adjust its logistics operations to meet these demands.

CO2 Reduction Initiatives

TEL’s CO2 emissions from domestic logistics operations are monitored and calculated within the scope of regulation defined by the Act on the Rational Use of Energy. In our overseas logistics operations, CO2 emissions are monitored and calculated based on the data from our intra-company logistics and product shipments to customers.

TEL has been implementing modal shifts*1 to transportation methods that are less environmentally harmful, where applicable. For example, we have adopted ocean shipment for some semiconductor and FPD production equipment and are making efforts to reduce production lead time to compensate for the extra time it takes to ship by ocean rather than by air. We have extended the use of shelved trolleys from the shipment of FPD production equipment to semiconductor production equipment as well, thereby improving the load factor of trucks and reducing both CO2 emissions and cost.

In fiscal year 2021, we set a new environmental goal for logistics to reduce the amount of wooden packaging materials used by 50% (packaging for semiconductor production equipment fiscal year 2024). We will continue to promote activities that contribute to the achievement of this goal.

CO2 emissions in fiscal year 2021 were 152,000 tons, a decrease compared to fiscal year 2020. This is due to a decrease in transportation ton-kilometers compared to fiscal year 2020.

*1 Modal shift: A change in the mode of transport; specifically, switching from conventional freight transport by truck or aircraft to a means that has a lower impact on the environment, such as rail or ocean.

Resource-saving Initiatives

Because TEL’s 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, TEL uses 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 TEL factories for reuse. These are only a few examples of TEL’s resource-saving efforts.

Supply chain Initiative「 E-COMPASS 」

Tokyo Electron (TEL) has 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 TEL’s 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. TEL 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.