Objectives & Achievements

Material issues SDGs to which
the Company contributes
ESG
fields
Key initiatives Issues, qualitative objectives,
and KPIs for FY 2023/12
Main achievements, progress, and KPI in FY 2023/12 Evaluation Issues, qualitative objectives,
and KPIs for FY 2024/12
Contribution to innovation and the creation of
social value
sdgslogo-1-eng.png Society (S) Increase the global
market shares of cutting-edge photoresists

■ Provide technologies, quality, environment, and added value that contribute to the value creation process of customers
■ Continue development and improvement from a thoroughly customer-oriented perspective
■ Ambitiously develop the technologies required for 5G, IoT, and other innovations

■ Consolidated net sales: Decreased by 7.5% year over year due to a market downturn
(<Semiconductor market: 8.2% decrease year over year*)
* Source: World Semiconductor Trade Statistics (WSTS)
■ Suppressed the decrease in sales by improving market share in advanced photoresists

■ Provide technologies, quality, environment, and added value that contribute to the value creation process of customers
■ Continue development and improvement from a thoroughly customeroriented perspective
■ Ambitiously develop the technologies required for 5G, IoT, and other innovations

Acquire and create core technologies for electronic materials and new fields ■ Continue to develop and strengthen commercial viability in new business fields (high-functional films, life science-related materials, and optical materials)
■ Expand collaborative projects with other companies and groups
■ Number of collaborative projects promoted with other companies and groups: Increased by approximately 14% year over year ■ Continue to develop and strengthen commercial viability in new business fields (high-functional films, life science-related materials, and optical materials)
■ Expand collaborative projects with other companies and groups
Secure stable supplies of high-quality products and establish an optimal production system for the Group ■ Improve detection sensitivity for metal impurities in compliance with customer development roadmaps
■ Create new value through DX (material development utilizing materials informatics and shift to smart factories)
■ Improve detection sensitivity for metal impurities that comply with customer development roadmaps
■ Promote sophistication of development work through automation of material data and experimental result accumulation
■ Sequentially deploy advanced production systems at new factories
■ Improve detection sensitivity for metal impurities that comply with customer development roadmaps
■ Create new value through DX (material development utilizing materials informatics / shift to smart factories)
Pursuit of happiness by human capital sdgslogo-2-eng.png Improve employee engagement and promote people-oriented management [2024 targets]
■ Employee engagement: Improve by three points (vs. 2021)
■ Employee-friendly environment: Improve by seven points (vs. 2021)
■ Continue promoting a good work-life balance
■ Childcare leave user rate among male employees: Maintain at 30% or more
■ Flex time expanded to more departments and work from home introduced as an official system
■ Introduce a new personnel system and appropriately establish and operate the system
■ Continue to implement training for department heads ■ Promote health and productivity management
■ Employee engagement: Declined by two points (vs. 2021) Employee-friendly environment: Improved by two points (vs. 2021)
■ Ratio of paid leave taken: 87.1%*1
■ Increased childcare leave taken (male employees: 12 in 2022 to 24 in 2023 with the user rate increasing to 66.7%)
■ Introduced new award system TOK Shinka Award
■ Considered the introduction of retirement age extension and internal job posting system
■ Introduced e-learning system allowing Web-based training according to individual needs
■ Provided management education and 360-degree evaluations of division heads
■ Conducted career training for managers and planned career training for middle-senior layer (45–54 years old)
■ Continued implementation of health management promotion activities
■ Employee engagement: Achieve objective for 2024: Improve by three points (vs. 2021)
■ Employee-friendly environment: Achieve objective for 2024: Improve by seven points (vs. 2021)
■ Maintain childcare leave user rate among male employees
■ Introduction of retirement age extension system: Aiming for introduction by January 2025
■ Introduction of internal job posting system: Aiming for introduction by January 2025
Diversity and inclusion ■ Continue to promote corporate activities that leverage diversity
■ Promote human capital exchanges within the Group
■ Measured job value in positions across the entire group
■ Ratio of non-Japanese employees: 24.3%
■ Ratio of local hires in overseas management positions (consolidated basis): 56.3%
■ Establish a foundation to promote human capital exchanges within the Group
■ Design systems to promote human capital exchanges based on job value
■ Continue to promote women in the workplace
■ Implement training for female employees pursuing management positions
■ Ratio of women in senior and middle management: Aim to increase to twice the level by 2030 (vs. 2020)

■ Held two career roundtable discussions for female employees targeting students in August
■ Ratio of women in senior and middle management: 4.5% (vs. 3.2% in 2020) *
■ Ratio of female new graduates hired: 22.4%*

■ Plan to hold panel discussions and seminars to enhance the attractiveness of managerial positions for potential managerial candidates
■ Continue career path seminars for female employees targeting students
Respect for human rights and fair working conditions ■ Continue efforts to prevent harassment
■ Implement human rights education
■ Implement anti-harassment and human rights education ■ Continue efforts to prevent harassment
■ Implement human rights education
Establishment of resilient organization sdgslogo-3-eng.png Governance (G) Build a sound, efficient management foundation ■ Streamline operation of the Information Management Committee
■ Strengthen cybersecurity measures
■ Reviewed information security standards in line with the introduction of new technologies and new systems, such as AI
■ Considered introducing security systems to strengthen cybersecurity and conduct desktop drills assuming actual cyber incidents
■ Continue strengthening of cybersecurity measures and review internal leakage countermeasures
Strengthen the effectiveness of governance ■ Continue to thoroughly operate the PDCA cycle to improve the effectiveness of the Board of Directors (assess effectiveness once a year)
■ Enhance internal control functions
■ Continue to check the approval authority and approval request operations
■ Establish new CSR and sustainability governance structures
■ Shifted to a company with an Audit and Supervisory Committee
■ Deepened discussions on company-wide managerial requirements
■ Checked progress of resolved matters
■ Checked the approval authority and approval request operations
■ Continue to thoroughly implement the PDCA cycle to improve the effectiveness of the Board of Directors (assess effectiveness once a year)
■ Review the manufacturing transfer process and the OEM process
■ Establish a risk transfer analysis process
* From May 1, 2024, began establishment and operation of OEM flow including overseas subsidiaries
■ Collected information and considered risk management systems to unify and visualize risk management
■ Identify and grasp group-wide issues related to governance, risk, and compliance
■ Develop a rational and effective risk management system by reviewing risk management methods in parallel with consideration of the introduction of a risk management system
Compliance ■ Continue activities to instill compliance
■ Continue periodic checks of laws and regulations (four times annually) and review the list of applicable laws and legal management procedures
■ Conducted compliance education and explain compliance in CSR education
■ Raiseed awareness of compliance (caution regarding drinking alcohol and reporting when receiving entertainment or gifts)
■ Reviseed and disseminated the CSR Policy Handbook
■ Performed checks on compliance with laws and regulations (four times annually), and reviewed the list of applicable laws and legal management procedures
■ Continue activities to instill compliance
■ Regular review and dissemination of CSR Policy Handbook
■ Continue periodic checks of laws and regulations (four times annually) and review the list of applicable laws and legal management procedures
■ Continue appropriate operation of the internal reporting system
■ Further enhance and disseminate the whistleblowing system
■ Reports to the whistleblowing system: 4 Consultations with other counseling sections: 19
■ Started operation of internal reporting procedure manual, built storage system for internal reporting response records
■ Provided education for whistleblowing response personnel and explain the internal reporting system through in-house education
■ Continue the appropriate operation of the internal reporting system
■ Further enhance the internal reporting system and promote awareness and penetration of the internal reporting system and whistleblowing system
Risk management ■ Reduce risks previously and newly identified through risk assessments
■ Continue to hold drills to increase awareness with the aim of maintaining a high response rate
■ Conduct desktop drills anticipating actual damage
■ Extracted 13 risks that include the technological innovation risk as major risks for the TOK Group and respond intensively
■ Discussed at the Board of Directors for creating a specialized department to control company-wide risks
■ Conducted regular drills and achieved high response rates
■ Conducted desktop drills assuming earthquake fires at the Utsunomiya plant

■Continuation of major risk reduction activities under the leadership of the newly established ERM Department
■ Build a system to confirm employee safety status within 24 hours and confirm effectiveness through drills and other means
■ Expand desktop drills assuming actual damage considering risks specific to each site

*1 Unconsolidated

Material issues SDGs to which
we contribute
ESG
 field
Key initiatives

Issues, qualitative objectives,
and KPIs for FY 2023/12

Main achievements, progress,
and KPI in FY 2023/12
Evaluation Issues, qualitative objectives, and KPIs for FY 2024/12
Global environmental conservation considering future generations sdgslogo-4-eng.png Environment (E) Initiatives toward achieving carbon neutrality Develop, manufacture, and market environment- friendly products ■ Stably supply i-Line photoresists for power semiconductors
■ Increase sales of plasma ashing systems for power semiconductors

■ Stably supply i-Line photoresists for power semiconductors
*Regarding plasma ashing systems for power semiconductors, the related business was transferred to Aimechatec Co., Ltd., in March 2023

■ Stably supply and increase sales of i-Line photoresists for power semiconductors
Proactive response to new environmental regulations ■ Start full-scale operation of a comprehensive management system for environment-related data ■ Start full-scale operation of a comprehensive management system for environment-related data ■ Reliable operation of a comprehensive management system for environment-related data
Proactive disclosure of environmental information ■ Proactive information disclosure through the Integrated Report and on the website ■ Proactive information disclosure Publish the Integrated Report and disclose environmental information on the website ■ Proactive information disclosure Publish the Integrated Report and disclose environmental information on the website
Improve energy-related CO2 emissions per base unit* [Medium-term target] Reduce energyrelated CO2 emissions (per base unit) by 15 points by 2030 compared with 2019 ■ Reduce energy-related CO2 emissions (per base unit) by 15 points by 2030 compared to 2019 ■ Reduced energy-related CO2 emissions (per base unit) by 72 points compared with 2019 ■ [New interim target] 30% reduction compared with 2019 (Group’s emissions) by 2030
■ Reduce energy-related CO2 emissions (per base unit) by 1 point compared with the previous year ■ Reduced energy-related CO2 emissions (per base unit) by 35 points compared with 2022 ■ [New interim target] 30% reduction compared with 2019 (Group’s emissions) by 2030
Improve energy consumption per base unit*
[Medium-term target] Reduce energy consumption (per base unit) by 15 points by 2030 compared with 2019
■ Reduce energy consumption (per base unit) by 15 points by 2030 compared to 2019 ■ Reduced energy consumption (per base unit) by 15 points compared to 2019 ■ Reduce energy consumption (per base unit) by 15 points by 2030 compared with 2019
■ Reduce energy consumption (per base unit) by 1 point compared with the previous year
■ Measures against the aging of equipment and the introduction of new energy conservation systems
■ Increased energy consumption (per base unit) by 6 points compared with 2022 × ■ Reduce energy consumption (per base unit) by 1 point compared with the previous year
■ Measures against the aging of equipment and the introduction of new energy conservation systems
Improve energy consumption per base unit in distribution*

■ Reduce energy consumption (per base unit) by 1 point or more compared with the previous year
■ Achieve efficient transportation by improving the loading rates of vehicles

■ Increased energy consumption (per base unit) by 4 points compared with 2022 ■ Reduce energy consumption (per base unit) by 1 point or more compared with the previous year ■ Achieve efficient transportation by improving the loading rates of vehicles and visualizing transportation
Measures to prevent global warming at overseas manufacturing sites ■ Promote production activities considering energy conservation ■ Renewed equipment considering energy conservation ■ Promote production activities considering energy conservation
Promote resource recycling Initiatives to address water risk* ■ Reduce water consumption by renewing equipment
■ Promote the cyclic use of water
■ Propose and implemented plans at each site
Example: Full-scale operation of pure water production building (Koriyama)/Introduction of new circulation cooling equipment (Utsunomiya)/Improvement of water circulation rate of existing cooling
equipment (Aso)
■ Reduce water consumption by renewing equipment
■ Promote the cyclic use of water

■ Reduce water consumption in Japan by 15% by 2030 compared with 2019
■ Continue measures against flooding risks

■ Water consumption in Japan: Increased by 7.1% compared with 2019*Decreased by 12.3%(year over year)
■ Continue measures against flood risks
× ■Reduce  water consumption in Japan by 15% by 2030 compared with 2019
■ Continue measures against flooding risks
Reduce industrial waste*
[Medium-term target] Reduce (per base unit) by 15 points by 2030 compared with 2019
■ Reduce (per base unit) by 15 points by 2030 compared with 2019 ■ Industrial waste generation (per base unit): Increased by 19 points compared with 2019 × ■ Reduce (per base unit) by 15 points by 2030 compared with 2019
■ Industrial waste disposed in landfills: Less than 1%, achieving zero emissions

■ Industrial waste disposed in landfills: Less than 1%, achieving zero emissions

■ Industrial waste disposed in landfills: Less than 1%, achieving zero emissions
Conserve air, water, and soil
environments
Prevent air, water, and soil pollution ■ Excess of operational thresholds: None ■ Excess of operational thresholds: None ■ Excess of operational thresholds: None
Countermeasures against ozone-depleting substances ■ Manage CFC leakage volume through the proper management of equipment
■ Examine the introduction of non-CFC equipment when renewing facilities

■ Manage CFC leakage volume through the proper management of equipment
■ Examine the introduction of non-CFC equipment when renewing facilities

■ Manage CFC leakage volume through the proper management of equipment
■ Examine the introduction of non-CFC equipment when renewing facilities
Eradicate environmental accidents that affect external parties ■ Environmental accidents: No major accidents ■ Environmental accidents: No major accidents ■ Environmental accidents: No major accidents
Preserve biodiversity Improve awareness of biodiversity based on TOK Biodiversity Protection Declaration and encourage participation in related activities ■ Implement ongoing employee training
■ Continue activities to preserve forests
■ Implemented CSR training for employees as well as all directors and auditors (100% participation rate)
■ Dispatched employees to participate in activities at the Kanagawa Trust Midori Foundation
■ Implement ongoing employee training
■ Continue activities to preserve forests
Supply chain sustainability sdgslogo-5-eng.png Precisely address laws and regulations Carry out appropriate and reliable management of chemical substances ■Establish chemical substance information management system
■Strengthen chemical substance management system of the TOK Group
■Consideration of modification and expansion of a chemical substance information management system
■ Revisions and started of operationof Chemical Management Standards
■ Established chemical substance information management system
■ Strengthen chemical substance management system of the TOK Group
Properly comply with the PCB Special Measures Act ■ Formulate and promote equipment renewal plan based on the roadmap toward the deadline of the disposal of PCB waste (low concentration) in 2027 ■ Formulated equipment renewal plan based on the roadmap toward the deadline of the disposal of PCB waste (low concentration) in 2027 ■ Formulate and promote equipment renewal plan based on the roadmap toward the deadline of the  disposal of PCB waste (low concentration) in 2027
sdgslogo-6-eng.png Social (S) Occupational health and safety/ Reduction of risks posed by chemical substances Foster a safety culture ■ Completed the acquisition of ISO 45001 certification at all sites in Japan
■ Setting 5S activities in place

■ Completed the acquisition of ISO 45001 certification at all sites in Japan
■ Implemented 5S activities at each site

■ Establish autonomous 5S activities
■ Strengthening risk management with safety first ■ Conducted safety inspections at all sites including overseas ■ Eliminate workplace accident occurrence risks
■ Strengthen emergency response drills ■ Conducted emergency response drills with changed scenario assumptions ■ Strengthen emergency response drills for various emergencies
■ Achieved zero accidents resulting in lost workdays ■ One accident with lost workdays and 13 accidents without lost workdays X ■ Achieved zero accidents resulting in lost workdays

 

* Unconsolidated basis and consolidated subsidiaries in Japan