Sustainability goals and results

Annual Sustainability Goals for Each Material Issues

Tokyo Electron is identifying the priority themes for each material issue, setting annual sustainability goals for each fiscal year, and understanding and verifying the progress of results.
We have also clearly identified the persons responsible for each goal, and by conducting various activities to achieve said goals, we are in turn contributing to the SDGs and further enhancing our corporate value.

Annual Sustainability Goals and Results

Goals and Results for Fiscal Year 2023

Goals for Fiscal Year 2024

169 Targets of the SDGs

Goals and Results for Fiscal Year 2023

Material Issues	Priority Themes	Annual Sustainability Goals	Results
Product Competitiveness	Tackling technological innovation	Increase research and development (R&D) investment to 1 trillion yen or more over 5 years (fiscal year 2023 to 2027)	R&D investment 191.1 billion yen
	Tackling technological innovation	Maintain the previous year’s global patent application rate*¹ (±10 percentage points)	Maintained the previous year's rate (Achieved 74.6% in fiscal year 2022 and 75.8% in fiscal year 2023)
	Customer Responsiveness	Solutions that create value for customers	Increase Tokyo Electron’s value to customers	Achieved sales at or above the previous year's level even in a softening memory market.
Increase sales-in-field solutions business by 5% or more from the fiscal year 2022 level		Solutions that create value for customers	Increased by 15.1% from previous fiscal year
Improvement of customer satisfaction		Achieve evaluations of “Very Satisfied” or “Satisfied” for 100% of customer satisfaction survey responses*²	100% (All 30 questions)
Higher Productivity	Continuous improvement of business operations	Target a 10% improvement in operational efficiency as a medium- to long-term goal, achieve centralized data management through adoption of a new ERP system and build a business foundation where employees can focus even more on high-value work Launch ERP introduction to overseas subsidiaries Prepare for ERP introduction to domestic manufacturing sites	Postponed ERP introduction to overseas subsidiaries until fiscal year 2024 Implemented ERP introduction to domestic manufacturing sites
	Quality Management	Check the impact of important common issues and thoroughly implement measures to prevent recurrence of similar faults	Continued and thoroughly operated QA-BOX*³ Held regular meetings monthly and ensured decisions on responses to cases posted in the QA-BOX and Group-wide deployment. Started monitoring effects of activities in accordance with internal policies System improvements
	Quality Management	Strengthen the information environment for more accurate quality status and promote improvement activities	Operated and regularly updated quality dashboard Prepared and improved quality rules Internal audits carried out⁴ based on Quality Regulations (TEL Manual/TEL Guidelines⁵)
	Improvement of customer productivity/yield	Identify root causes of market failures and promote and strengthen Shift Left initiatives by thoroughly implementing countermeasure activities	Make visible information related to risks from market failures Implement B-FMEA*⁶ strengthening activities with reference to specific factories
	Improvement of customer productivity/yield	Identify risks and thoroughly implement countermeasures from the initial development stage (thorough prevention)	Improvement activities aimed at ideal quality assurance Accurately grasp information about failures Strengthen analysis capacity Strengthen supplier quality
Management Foundation	Diversity and inclusion	Recruit and develop world-class human resources regardless of nationality, age, gender, etc., in order to realize an optimal organization and optimal placement of the appropriate personnel to execute our business strategy	Currently preparing a system to allow employees to act widely, beyond restrictions of organization or region Provide growth opportunities through things like cross-regional assignments
		Conduct a diversity-conscious talent pipeline (plan for developing human resources) for succession planning and achieve the goal of increasing the ratio of female managers*⁷ to 8% globally and 5% in Japan (by fiscal year 2027)	Global: 5.7%, Japan: 2.7% Identified females with potential in a global scope and carried out career development support for individual talent Confirmed pipeline of high-potential female talent through succession planning for department manager-level positions and considered/implemented actions to expand this.
		Implement initiatives to make the ratio of female recruits equal to or greater than the general ratio of females in each region	Ratio of female engineers entering the company in April 2023: 8.6% (Japan) Held briefings/follow-ups for those with job offers for female engineer candidates Directly scouted and held individual interviews for females with the potential to be engineers Created relationships with universities that have faculties/departments with high female student ratios
		Create an organizational structure where even those from outside of Japan can take on corporate roles through the use of technology and shared global human resources systems	Implemented the development of this structure globally
		Implement a personnel exchange program for engineers at overseas subsidiaries and domestic manufacturing sites	Hosted about 30 engineers from overseas subsidiaries at domestic manufacturing sites and implemented training programs
		Share the message of top management's commitment to promoting diversity and inclusion and its continued dissemination	Carried messages from the presidents of overseas subsidiaries in the internal newsletters Announced messages from top management at employee meetings and DE&I events
	Career development	Foster a culture of learning and development in the workplace through Leader development a culture of business ethics and compliance programs. Provision of personalized global learning opportunities. Support for career development throughout working life	Conducted leader training (e.g., management skills training) Total: 342 participants (Japan) Conducted external web-based education Total: 6,319 participants (Japan), 3,691 participants (Overseas) Conducted generation-specific career training Total: 204 participants (Japan) Number of Career Counseling Room users: 75 (Japan)
	Work-life Balance	Reach at least 70% take-up rate of annual paid leave	70.0% (Japan)
	Health and safety	Increase the percentage of employees receiving specific health guidance to 60% (figures based on the results of medical checkups up to the end of fiscal year 2024)	55% Aim for a 60% implementation rate for fiscal year 2024, and continued to work to encourage specific health guidance for certain employees and improve participation rates
	Health and safety	Reduce the number of workplace injuries per 200,000 work hours Target: TCIR is less than 0.50	0.33
	Governance	Continue to improve on issues identified in evaluations of the effectiveness of the Board of Directors	Established a Corporate Officers Meeting (COM) as the highest decision-making body on the executive side, and granted the COM the authority to determine some of the matters to be decided by the Board of Directors The contents of COM agendas were added to the reports/briefings at the Board of Directors meetings, and the minutes were also shared with the Board of Directors Two offsite meetings were held, in which the key measures and road map to achieving the medium-term management plan, capital policies and personnel strategies such as diversity, risk management, looking back on what happened after the corporate officer system was introduced and so on are discussed. Reported to the Board of Directors on the status of activities such as progress with successor planning and future directions regarding the Nomination Committee. At venues outside the Board of Directors meetings, meetings were held to exchange information by the Chairman of the Board of Directors and outside officers
	Risk Management	Further strengthen the PDCA cycle Continue to implement internal education programs Implement company-wide risk management tools	The Risk Management Committee met twice this year, and was positioned as the permanent organization to promote the PDCA cycle for company-wide risk management activities. Promoted initiatives towards strengthening the risk management system in each Group company Studied holding workshops for management and web-based training for all employees to foster an in-house risk culture Implemented the ERM*⁸ Dashboard company-wide risk management tool to make visible risks and response statuses across all Group companies In addition, risk assessment standards were revised and rolled out globally to allow more effective operation
	Compliance	Continue to foster a culture of business ethics and compliance Strengthen efforts to continuously communicate the CEO message and foster a culture of business ethics and compliance Continue to improve and implement a compliance program based on compliance risk assessments Systematic implementation and effective review of various compliance training programs	Presented messages from the CEO at employee meetings and management meetings. Carried out training that includes messages from executives. Regular newsletters distributed Discussion, planning, and implementation of risk reduction measures through regular meetings with the Business Ethics Committee and Group companies. Completed 95% of improvement actions based on compliance risk assessments for overseas local subsidiaries. Promoting the Compliance Project (Related to licensing procedures and the Subcontract Act) Prepared an annual schedule and developed training programs based on the targets (carry out training for managers, training for departments that handle personal information), and share cases of misconduct.
	Environmental contributions of products	Reduce per-wafer emissions of CO₂ by 30%(by fiscal year 2031, compared with fiscal year 2019)	20.8% reduction (compared to FY2019)
		Reduce the amount of the use of woden packaging materials by 50% (packaging for semiconductor production equipment, by fiscal year 2024)	20.3% reduction
		Reduce CO₂ emissions of overall logistics (own delivery) by 10% through modal shift and joint delivery (by fiscal year 2027)	11.4% reduction
	Environmental management	Reduce total CO₂ emissions at plants and offices by 70% (by fiscal year 2031, compared with fiscal year 2019)	76% reduction (compared to FY2019)
		Introduce 100% renewable energy usage at plants and offices (by fiscal year 2031)	91％
		Reduce energy consumption by 1% YoY at each plant and office (per-unit basis*⁹)	Achieved goal at 6 of 11 plants or offices
		Maintain water consumption (per-unit basis*¹⁰) at each plant and office at the fiscal year 2012 level in Japan and at individual base year levels overseas	Achieved 9 of 13 goals
	Supply Chain Management	Implement supply chain sustainability assessments for the following percentages of suppliers Material suppliers: Covering at least 85% of our procurement spend Logistics suppliers:100% of customs-related operators Staffing suppliers: 100% of employment agencies and contracting companies (internal contractors)	Material suppliers: Achieved 85% or more of our procurement spend Logistics suppliers: Achieved 100% of customs-related operators Staffing suppliers: Achieved 100% of employment agencies and contracting companies (internal contractors)
	Supply Chain Management	Implement supply chain BCP*¹¹ assessment for the following percentages of suppliers Material suppliers: Covering at least 85% of our procurement spend	Material suppliers: Achieved 85% or more of our procurement spend

Global patent filing rate: Percentage of inventions filed as a patent application in multiple countries

For each question, average score is calculated for all customers who responded

QA-BOX: Tool for the sharing and horizontal deployment of important quality-related information within our Group companies

Audited sites: Tokyo Electron Technology Solutions Tohoku Office, Tokyo Electron Kyushu, Tokyo Electron Miyagi

TEL Manual/TEL Guidelines: Regulations based on company-wide quality policies set for each major business category, such as development, designed, manufacturing, and services

B-FMEA: Base-Failure Mode and Effect Analysis

Include experts in the number of managers

ERM: Enterprise Risk Management. Refer to Risk Management

Per-unit basis: Calculated using complex weighting of the number of developed evaluation machines, units produced, floor area and labor-hours for each district

Per-unit basis: Calculated based on floor area and labor-hours, etc., for each district

BCP: Business Continuity Plan

Goals for Fiscal Year 2024

Material Issues	Priority Themes	Annual Sustainability Goals
Product Competitiveness Continuously create high value-added next-generation products	Tackling technological innovation	Maintain the previous year’s global patent application rate (±10 percentage points)
Customer Responsiveness Strong relationship based on trust /Sole strategic partner	Solutions that create value for customers	Increase Tokyo Electron’s value to customers
	Improvement of customer satisfaction	Achieve evaluations of “Very Satisfied” or “Satisfied” for 100% of customer satisfaction survey responses
Higher Productivity Pursuit of operational efficiency	Continuous improvement of business operations	Target a 10% improvement in operational efficiency as a medium- to long-term goal, achieve centralized data management through adoption of a new ERP system and build a business foundation where employees can focus even more on high-value work Launch ERP introduction to overseas subsidiaries Start ERP introduction to domestic manufacturing sites
	Quality Management	Check the impact of important common issues and thoroughly implement measures to prevent recurrence of similar faults Strengthen the information environment for more accurate quality status and promote improvement activities
	Improvement of customer productivity/yield	Identify root causes of market failures and promote and strengthen Shift Left initiatives by thoroughly implementing countermeasure activities　 Extract risks from initial development stage and ensure countermeasures (ensure prevention before issues arise)
Management Foundation Build a strong management foundation that underpins our business activities	Diversity and inclusion	Conduct a diversity-conscious talent pipeline (plan for developing human resources) for succession planning and achieve the goal of increasing the ratio of female managers to 8% globally and 5% in Japan (by fiscal year 2027)
	Diversity and inclusion
	Career development	Foster a culture of learning and development in the workplace through Leader development a culture of business ethics and compliance programs Provision of personalized global learning opportunities Support for career development throughout working life
	Work-life Balance	Take-up rate of annual paid leave　Japan: 75% or more　Overseas: Equal to or better than the previous fiscal year’s results
	Health and safety	Reduce the number of workplace injuries per 200,000 work hours Target: TCIR is less than 0.30
	Governance	Achieve solid corporate governance for enhancing corporate value over the medium to long term and sustainable growth by working at all times to establish an optimally effective Board of Directors and an aggressive management execution system, and by continuously addressing issues based on evaluations of the effectiveness of the Board of Directors and input from institutional investors and other stakeholders. Seeking a Board of Directors with high effectiveness Audit & Supervisory Board System: Ratio of outside directors: One-third (including two female). Free and open discussions including corporate auditors Off-site meetings: For discussions on medium- to long-term strategies, issues, etc. (twice annually) CEO reports: Reports to the Board of Directors on the status of execution of key duties by the CEO (every Board of Directors) CEO mission: Information is shared concerning the CEO’s mission for achieving the new Medium-term Management Plan Representative director assessment closed sessions: Sessions including directors and Audit & Supervisory Board members but excluding the representative director (once annually) Operating rhythm supporting the execution of business Corporate Officers Meeting: The highest decision-making body on the executive side (once monthly) CSS（Corporate Senior Staff): Global, across-the-board coordination of company-wide business execution (four times annually) Quarterly review meeting: Monitoring the progress of the new Medium-term Management Plan (four times annually)
	Risk Management	We are building and further improving a highly effective risk management system that supports a strong management foundation. Enhance risk management and compliance based on the slogan “Safety, Quality and Compliance. Our top priority. It’s our pride.” Together with establishing a dedicated Compliance Department at our headquarters and appointing a Chief Compliance Officer and Regional Compliance Head, we are also conducting assessments by external agencies and undertaking education. Conduct supervision and monitoring through reports to the Corporate Officers Meeting—the highest decision-making body on the executive side—and the Board of Directors (twice annually). Conduct appropriate measures with certainty across the entire Group, we are identifying risks (12 risks in fiscal 2024) expected in the execution of business centered on the Risk Management Committee and deploying them in the activities of each company. Continuously conductactivities to foster awareness about safety, compliance and risk management, and reflecting the awareness of all executives and employees as well as their autonomous and specific initiatives in our human
	Compliance	Establish a compliance system and ongoing fostering of corporate ethics/culture to prevent major incidents before they happen. Construction of a compliance promotion system Group-wide and increase sophistication of operating rhythm Revise and execute a system to spread awareness about compliance and change actions Sustained improvements and execution of programs based on compliance risk assessments Digital promotion of compliance work and programs
	Environmental contribution of products	Reduce the amount of the use of wooden packaging materials by 50% (packaging for semiconductor production equipment, by fiscal year 2024)*¹
	Environmental management	Reduce energy consumption by 1% YoY at each plant and office (per-unit basis) Maintain water consumption (per-unit basis) at each plant and office at the fiscal year 2012 level in Japan and at individual base year levels overseas
	Supply Chain Management	Supply chain sustainability assessment implementation rate Material suppliers: Covering at least 85% of our procurement spend Logistics suppliers: 100% of customs-related operators Staffing suppliers: 100% of employment agencies and contracting companies (internal contractors)
	Supply Chain Management	Implement supply chain BCP assessment for the following percentages of suppliers Material suppliers: Covering at least 85% of our procurement spend

Revised listing method for targets

169 Targets of the SDGs

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