Objectives & Achievements

Material issues	ESG fields	Key initiatives	Issues and objectives for FY 2021/12	Evaluation	Issues, qualitative objectives, and KPI objectives for FY 2022/12
Contribution to innovation and the creation of social value	Society (S)	Increase the global market shares of cutting-edge photoresists	■ Rapidly and steadily work to develop a support structure rigorously focused on customer satisfaction along with R&D ■ Through rigorous marketing, TOK will carefully identify solutions that lead to the creation of new value for customers and intensively and proactively address issues ■ Ambitiously develop technologies required for 5G, IoT and other innovations	○	■ 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 technologies required for 5G, IoT and other innovations ■ R&D efficiency: Aim to achieve and maintain 200%
		Acquire and create core technologies for electronic materials and new fields	■ Expand the development of cutting-edge materials at the new R&D building ■ Expand collaborative projects with other companies and groups ■ Continue to develop and strengthen the commercial viability of high-functional films, life science-related materials, and optical materials	○	■ 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 produc- tion system for the Group	■ Improve detection sensitivity for metal impurities in compliance with customer development roadmaps	○	■ 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 in personnel		Improve employee engagement and promote people-oriented management	■ Continue to promote a good work-life balance ■ Expanded flex time to more departments and introduced work from home as an official system ■ Introduced an hourly paid holiday system ■ Formulated a new personnel system in detail toward introduction in 2022 ■ Implemented training for new managers and transferred employees	○	■ Employee engagement: Promote initiatives toward the objective for 2024: Improve by 3 points (vs. 2021) ■ Employee-friendly environment: Promote initiatives toward the objective for 2024: Improve by 7 points (vs. 2021) ■ Continue to promote a good work-life balance ■ Childcare leave user rate among male employees: Maintain at 30% or more ■ Expanded flex time to more departments and introduced work from home as an official system ■ Introduce new personnel system and appropriately operate the system to set it in place ■ Continue to implement training for department and division heads ■ Promote health & productivity management
		Diversity and inclusion	■ Continue to promote corporate activities that leverage diversity ■ Promote personnel exchanges within the Group	△	■ Continue to promote corporate activities that leverage diversity ■ Promote personnel exchanges within the Group
		Diversity and inclusion	■ Continue to promote women in the workplace ■ Continue to promote career training featuring life stages	○	■ 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)
		Respect for human rights and fair working conditions	■ Continue efforts to prevent harassment ■ Implement human rights education	○	■ Continue efforts to prevent harassment ■ Implement human rights education
Establishment of a resilient organization	Governance (G)	Establish a sound and effi- cient management foundation	■ Promote effective utilization of information ■ Review all cybersecurity measures ■ Maintain and entrench information management standards	○	■ Streamline the operation of Information Management Committee ■ Strengthen cybersecurity measures
		Strengthen the effectiveness of governance	■ Establish a new remuneration system and formulate performance indicators concerning the next medium-term plan ■ Formulate skill matrix of directors ■ Continue to thoroughly operate the PDCA cycle to improve the effectiveness of the Board of Directors (assess its effectiveness once a year) ■ Enhance internal control functions ■ Confirm the operating status after the revision of authorities	○	■ Continue to thoroughly operate the PDCA cycle to improve the effectiveness of the Board of Directors (assess its 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
		Strengthen the effectiveness of governance	■ Review the committee structure and the operation of the Group Management System (GMS) ■ Visualize operations to achieve standardized and globally optimized operations in the Group	○	■ Reviewed the manufacturing transfer process and the OEM process ■ Established a risk transfer analysis process
		Compliance	■ Continue activities to instill compliance ■ Formulate and disseminate the list of applicable laws and the legal management procedures	○	■ Continue activities to instill compliance ■ Continue periodic checks on laws and regulations (four times annually), and review the list of applicable laws and legal management procedures
		Compliance	■ Continue appropriate operation of the internal reporting system ■ Further enhance and disseminate the internal reporting system	△	■ Continue appropriate operation of the internal reporting system ■ Further enhance and disseminate the internal reporting system
		Risk management	■ Work to reduce risks previously and newly identified through risk assessments ■ Create a unified BCP for the Group to begin implementation in 2022 ■ Continue to hold drills to increase awareness and aim to maintain a high response rate	△	■ Reduce risks previously and newly identified through risk assessments ■ Continue to hold drills to increase awareness and aim to maintain a high response rate ■ Conduct desktop drills anticipating actual damage

Material issues	ESG field	Key initiatives	Issues and objectives for FY 2021/12		Main achievements, progress, and KPI in FY 2021/12	Evaluation	Issues, qualitative objectives, and KPI objectives for FY 2022/12
Global environmental conservation consider- ing future generations	Environment (E)	Initiatives toward realization of carbon neutrality	Develop, manufacture, and market environment- friendly products	■ Stably supply i-Line photoresists for power semiconductors ■ Increase sales of equipment for power semiconductors	■ Stably supply and increase sales of i-Line photoresists for power semiconductors ■ Increase sales of equipment for power semiconductors	○	■ Stably supply and increase sales of i-Line resists for power semiconductors ■ Increase sales of plasma ashing systems for power semiconductors
			Proactive response to new environmental regulations	■ Introduce a comprehensive management system for environment-related data	■ Introduce a comprehensive management system for environment-related data	○	■ Introduce a comprehensive management system for environment-related data and prepare to start operation in 2023
			Proactive disclosure of environmental information	■ 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 ■ Disclosure of the ESG Data Book	○	■ Proactive information disclosure through the Integrated Report and on the website
			Create environmental management structures	■ Examine methods for the effective implementation of company-wide environmental management activities	■ Identify risks and opportunities at each department in Japan to set company-wide objectives	○	■ Create environmental management structures throughout the TOK Group
			Improve energy-related CO2 emissions per base unit* [Medium-term target] Reduce energy-related CO2 emissions (per base unit) by 15 points by 2030 compared with 2019 (Scopes 1 and 2)	■ Reduce energy-related CO2 emissions (per base unit) by 15 points by 2030 compared with 2019	■ Reduce energy-related CO2 emissions (per base unit) by at least 35 points compared with 2019	○	■ Reduce energy-related CO2 emissions (per base unit) by 15 points by 2030 compared with 2019
				■ Reduce energy-related CO2 emissions (per base unit) by 1 point compared with the previous year	■ Reduce energy-related CO2 emissions (per base unit) by at least 27 points compared with 2020	○	■ Reduce energy-related CO2 emissions (per base unit) by 1 point compared with the previous year
			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 with 2019	■ Reduce energy consumption (per base unit) by 19 points compared with 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	■ Reduce energy consumption (per base unit) by 11 points compared with 2020	○	■ 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 at least 1 point compared with the previous year	■ Reduce energy consumption (per base unit) by 1 point compared with 2020	○	■ 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
			Measures to prevent global warming at overseas manufacturing sites	■ Promote production activities considering energy conservation	■ Promote production activities for energy conservation	○	■ Promote production activities for energy conservation
		Promote resource recycling	Initiatives to address water risk*	■ Propose and implement plans at each site	■ Propose and implement plans at each site Examples: Cyclic use of blowing water for air conditioners and cooling water for equipment	○	■ Reduce water consumption by renewing equipment ■ Promote the cyclic use of water
			Initiatives to address water risk*	■ Reduce domestic water consumption by 15% by 2030 compared with 2019 ■ Continue measures against flooding risks	■ Domestic water consumption: Increased by 0.4% compared with 2019 ■ Continue measures against flooding risks	△	■ Reduce domestic water consumption by 15% by 2030 compared with 2019 ■ Continue measures against flooding risks
			Initiatives to address the marine plastics issue	—	—	—	■ Introduce product packaging materials derived from bioplastics
			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 9.5 points compared with 2019	△	■ Reduce (per base unit) by 15 points by 2030 compared with 2019
				■ Industrial waste disposed in landfills ➞ less than 1% Achieve zero emissions	■ Industrial waste disposed of in landfills: Less than 1%, achieving zero emissions	○	■ Industrial waste disposed of 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 the TOK Biodiversity Protection Declaration and encourage participation in related activities	■ Continue ongoing employee training ■ Continue activities to preserve forests	■ Implement CSR training for employees, as well as all directors and officers: 100% participation rate ■ Dispatch employees to participate in activities at the Kanagawa Trust Midori Foundation	○	■ Implement ongoing employee training ■ Continue activities to preserve forests
Supply chain sustainability		Precisely address laws and regulations	Carry out appropriate and reliable management of chemical substances	■ Establish chemical substance information management system ■ Continue to strengthen and operate chemical substance management system	■ Establish a chemical substance information management system ■ Continue to strengthen and operate a chemical substance management system	○	■ Establish a chemical substance information management system ■ Continue to strengthen and operate a chemical substance management system
		Precisely address laws and regulations	Properly comply with the PCB Special Measures Act	■ Formulate and promote an equipment renewal plan based on the road map toward the deadline of disposal of PCB waste (low concentration) in 2027	■ Formulate and promote an equipment renewal plan based on the road map toward the deadline for the disposal of PCB waste (low concentration) in 2027	○	■ Formulate and promote an equipment renewal plan based on the road map toward the deadline for the disposal of PCB waste (low concentration) in 2027
	Society (S)	Occupational health and safety/ Reduction of risks posed by chemical substances	Foster a safety culture	■ Establish and improve occupational health and safety management systems ■ Prepare to acquire ISO 45001 certification and extend the scope of certification (Complete acquisition at all sites in Japan by 2023)	■ Strengthen risk assessment for occupational health and safety ■ Acquire ISO 45001 certification at four domestic sites	○	■ Prepare to acquire ISO 45001 certification and extend the scope of certification (Complete acquisition at all sites in Japan by 2023)
			Promote safety education and training, and disaster drills			○
			Promote risk assessment activities in chemical substance handling work	■ Strengthen risk assessment and hazard prediction activities for infrequent operations ■ Establish Lockout/Tagout (LOTO) rules	■ Issue the Guidelines for Risk Assessment and Hazard Prediction for infrequent operations and strengthen the activities ■ Set the LOTO rules in place through the horizontal expansion of findings in the RBA audit	○	■ Foster safety culture by reestablishing the 5S
			No major accidents	■ Achieved no major accidents	■ Workplace accidents: 8 ■ Achieved zero accidents resulting in lost workdays	○	■ Achieved no major accidents