Human Rights

We at Tokyo Electron are conscious of our corporate social responsibility, and we recognize that it is important to conduct ourselves with a strong sense of integrity. Based on this recognition, we have firmly upheld human rights since our founding, as reflected in the spirit of our Corporate Philosophy and Management Policies. For us, respecting human rights means a significant undertaking, not only to fulfill our responsibility for eliminating adverse impacts on people caused by business activities but also to respect those people who support our business activities, and contribute to the realization of a sustainable, dream-inspiring society. We incorporate the concept of respect into every aspect of our business activities, and strive to nurture a dynamic corporate culture where each person can realize their full potential.

We recognize the importance of respecting human rights in all aspects of business activities. Our principles for respect for human rights are established in our Management Policies and Code of Ethics prohibiting discrimination based on gender, nationality, age, race, creed, or religion; forced labor, child labor, and harassment. The Group aspires to create a pleasant workplace environment where everyone can work free of discrimination by implementing employee training and establishing hotlines for prompt awareness and resolution of activities related to human rights issues.

Our Human Rights Policy*¹, summarizing our approach to human rights specifies five focus areas: Freedom, Equality & Non-Discrimination; Freely Chosen Employment; Product Safety & Workplace Health and Safety; Freedom of Association; and Appropriate Working Hours & Breaks/Holidays/Vacations.

In preparing the Human Rights Policy, we referred to the United Nations’ Guiding Principles on Business and Human Rights and the International Bill of Human Rights and the ILO Declaration on Fundamental Principles and Rights at Work referred to therein, the Ten Principles of the United Nations Global Compact, and the RBA Code of Conduct*².

We ensure that our executives and employees, as well as suppliers, are fully aware of this content. Specifically, we publish the Human Rights Policy on our website and also implement online training targeting all of our executives and employees.

We identify human rights risks and conduct human rights due diligence to develop remediation actions every year. In fiscal year 2022, we unified the survey contents with reference to the RBA auditing standards, and surveyed 12 companies out of the entire Group in Japan and overseas, including the head office, and approximately 650 business partners involved in materials, staffing, customs services, packaging, etc.

Consequently, potential/actual risks (Priority/Major/Minor)1 turned out to be 17％ of our Group companies and 18％ of suppliers, with labor- and health and safety-related risks comprising the majority of the risk breakdown.

In the area of labor, items including the formulation of policies and procedures pertaining to thorough management of working hours and the employment of student workers, interns and trainees were identified as risks. In the area of health and safety, items including the implementation of evacuation drills for all workers and deployment of trained emergency response personnel were identified as risks.

With regard to these identified risks and their impact, inside our Group companies we are conducting checks at each of our sites based on feedback sheets, and implementing a remediation program to review the execution of working hours management, formulate various policies and procedures, carry out evacuation drill initiatives, and address ethics and management systems. To our suppliers, using feedback sheets we provide reports on the potential/actual risks identified in the survey and are working on remediation activities to reduce these risks.

In addition, the percentage of companies where no potential/actual risks are considered to exist (conformance) was 80％ for our Group companies and 73％ for our suppliers.

Furthermore, we recognize the importance of having highly effective grievance mechanisms related to human rights and are working to establish reporting systems*² for employees and suppliers in Japan and abroad, and to further strengthen the operation of those mechanisms. By adopting highly justified and fair grievance mechanisms, we are identifying adverse human rights impacts at an early stage and building mechanisms to
help remediate them.

Going forward, in addition to proactively deploying human rights-related initiatives and further enhancing their efficacy and transparency, we will work to reduce human rights risks in our companies and in our supply chain.