Human Rights

Approach to Human Rights

Conscious of our corporate social responsibility, Tokyo Electron recognizes 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 through business activities, but 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 his or her full potential.

Human Rights

Tokyo Electron(TEL) recognizes 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.

Human Rights Initiatives

In fiscal year 2018, we formulated our Human Rights Policy*¹, summarizing our approach to human rights. We have specified the human rights we believe are particularly important in business activities as 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.

Commitment Commitment to respecting human rights Human Rights Policy publication Awareness and implementation Education Assessment Assessment of human rights risks in business and supply chains CSR assessment Human rights risk assessment Human rights impact assessment Remediation Actions to reduce risks based on assessment results Feedback sheet publication Program development and review according to issues Report Regular disclosure of information Sustainability Report publication Disclosures on website

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 to make it available to everyone inside and outside the company and also implement an online human rights training targeting all of our executives and employees.

In fiscal year 2021, as in the previous fiscal year, we conducted human rights due diligence, as well as risk surveys, and identified and assessed impacts. As part of the surveys, we utilized a self-assessment questionnaire (SAQ) for internal use, based on the RBA Code of Conduct, and also reviewed the results of a CSR assessment3 for suppliers of materials, staffing and logistics to assess the current situation throughout the value chain. We are using the results of these surveys to consider corrective actions and reduce human rights risks.

Supplier Human Rights Risk Survey Results

The results of human rights risk surveys conducted at suppliers showed that 35% of those with 500 or more employees had potential/actual risks. Among these risks, the major risks are health and safety issues related to human rights, followed by labor issues. Based on these results, we continued to request those suppliers to comply with domestic laws and regulations and social norms related to health and safety. We will work to reduce human rights risks by promoting corrective actions together with our suppliers.

Meanwhile, inside our company, we identified potential human rights risks in the areas of labor, and health and safety.
To mitigate these risks, we are renewing our efforts to fully manage working hours and also taking steps to improve operational efficiency further.

Percentage of companies considered to have potential/actual risks 65% Percentage of companies considered to have low risks 35% Health and Safety Deployment of trained emergency response personnel Designation of emergency response teams, and provision of personal protection equipment and training Establishment of risk assessment procedures and programs,assuming emergency situations Implementation of evacuation drills for all workers, assuming fires and other emergencies Labor Working hours Burden of employmentrelated fees Environment Appropriate use of water and waste water management to prevent pollution Management Systems Reporting system

We recognize the importance of having highly effective grievance mechanisms related to human rights and are working to establish and operate those mechanisms.In fiscal year 2021, we further strengthened our internal and external reporting systems in Japan and overseas for employees and suppliers.

By continuing to conduct human rights due diligence going forward, we will assess and correct any human rights issues we identify in our business activities and further improve the grievance mechanisms we provide.

*1 Human Rights Policy https://www.tel.com/sustainability/management-foundation/img/HumanRightsPolicy_e.pdf
*2 RBA Code of Conduct: The RBA establishes a set of standards for supply chains in the electronics industry for a safe labor environment to ensure that workers are treated with respect and dignity and that companies take responsibility for environmental impact in the manufacturing process
*3 CSR assessment: Sustainability Report Refer to Supply Chain Management on p.54