TOKYO ELECTRON LIMITED

Material issues

By realizing our vision and practicing our corporate philosophy, we aim to expand our profits over the medium to long term and enhance our corporate value continuously; to that end, we have positioned key items that should be given priority as our material issues, and these are reviewed each year. In the fiscal year 2024, we reviewed the content of our existing material issues to make them more detailed, and identified new material issues.

Material Issues Identification Process

We obtain the advice of a third party specialist regarding consideration of the process by which we identify material issues.

Prepare environment and determine issues We analyze the status of social issues and the SDGs, business environments, the results of engagement with stakeholders*¹ and key risks in our business activities*² to determine issues that could become our material issues.

  • Social Issues
  • Climate change, human rights issues, geopolitical confrontations, supply chain management, cybersecurity, price rises, etc.

  • Business Environment
  • Further expansion of semiconductors and semiconductor production equipment markets as we move rapidly to a data-driven society, initiatives for the preservation of the global environment, human rights initiatives, further strengthening of corporate governance
Prioritizing / Mapping Determined issues are evaluated and mapped on two axes: “Importance to stakeholders,” which considers the impact on and interest of stakeholders, and “Impact on our performance and corporate value,” which aims to continuously enhance our corporate value.




 
Identifying Material Issues We identified key items as material issues following discussions and decisions by the Corporate Officers Meeting, participated in by the CEO, and a report to and approval of the Board of Directors.
In addition, we confirmed the material issues’ relation to key indicators for continuous corporate value enhancement*³ and the SDGs to be addressed.
Furthermore, we clarified the main material issue initiatives in the value chain.
 

Refer to Stakeholder Engagement

Refer to Risk Management

Refer to integrated report “Key Indicators for Continuous Corporate Value Enhancement”

Identified Material Issues

Material Issues Significance as Material Issues  Main Initiatives Relevant SDGs
Our Significance Significance to Society 
Climate Change and Net Zero Reduce the environmental impact of businesses, products, and services to achieve net zero emissions Reduce climate change risks and create new opportunities
Product Energy Efficiency Achieve both the process performance and environmental performance of products Preservation of the global environment by providing environmentally friendly products


 
Best Products with Innovative Technology Establish superiority by creating high-value-added products with innovative technology Promote innovation and development of society through the evolution of semiconductors

Best Technical Service with High-Value-Added Expand business opportunities by providing advanced field solutions that solve customer issues Improve semiconductor device yield and maximize equipment utilization rates

Customer Satisfaction and Trust Pursue customer satisfaction and build relationships of absolute trust as a unique strategic partner Maximize return on investment and expand mutual benefits through co-creation

Supplier Relationship Carry out activities such as development, improvement, and quality improvement through collaboration Maintain soundness and strengthen competitiveness throughout the supply chain

Respect for Human Rights Reduce human rights risks and respect individual dignity in business activities Solve issues such as discrimination, inequality, and those related to labor and safety

Employee Engagement Create an environment where individuals can maximize their abilities and work actively Provide various kinds of value that are beneficial to stakeholders
Safety First Operation Achieve sustainable operations by putting safety first Build a safe society
Quality Management Pursue management efficiency through quality-focused operations Create new value by strengthening competitiveness through quality improvement
Compliance Comply with laws, regulations, industry codes of conduct, etc. as the basis for corporate reliability and sustainable growth Improve compliance awareness and develop a compliance-oriented culture
Ethical Behavior Strive to be a company with a strong sense of corporate social responsibility where our employees can take pride in their work and feel happy Form a fair and orderly society
Information Security Balance data utilization and information security by tackling cyberattacks, information leaks, etc. Ensure information security without sacrificing convenience
Enterprise Risk Management Aim for sustainable growth by appropriately responding to business risks and their impacts Contribute to the medium- to long-term development of industry and society