Environmental Management Structure

The SUMCO Group has established the Environmental Management Structure in which the Environmental Management Officer, a member of the board of directors, appoints the Company-wide Environmental Manager and the Environmental Managers at site, and defines their roles, responsibilities and authorities. Thoroughness of instructions and information sharing are ensured at meetings of the Company-wide Environmental Management Committee and the Environmental Management Committee at each site, both of which are convened periodically. SUMCO's Environmental Management Officer holds chief responsibility for issues related to climate change and has chief authority regarding those issues. The Environmental Management Officer convenes meetings of the Environmental Management Committee and monitors SUMCO's efforts to address climate change.

Environmental Management Structure

Tackling climate change (Goals for Carbon Neutral)

Tackling climate change is one of the goals in SDGs, and delinking of economic growth and environmental degradation is strongly required.
The SUMCO Group, which supports the growing semiconductor industry, set goals for carbon neutral covering Scope 1+2 in September 2021 toward the realization of a sustainable society.
In addition, with the aim of obtaining SBT certification in February 2024, we have changed the mid-term goal that complies with the SBT 2.0℃ scenario to comply with the 1.5℃ scenario.The SUMCO Group continues to consider expanding the scope of targets (formulation of Scope 3 emission reduction targets and inclusion of overseas sites).

• (※1)Science Based Targets
•  Reduction targets of greenhouse gas emissions set by companies that comply with the standards of the Paris Agreement.

Unit energy usage goal

In addition to the goals targeting carbon neutral, we set an unit energy usage goal in 2019.The CO₂ emissions related to the unit consumption calculation are the actual emissions of Scope1+2 (no carbon offset) and we shall strive to reduce CO₂ emissions by reducing energy consumption and improving energy efficiency in our corporate activities.

Environmental Objectives

The SUMCO Group sets environmental objectives for each of its operating bases based on its Environmental Policies and the results of environmental load assessments that are conducted periodically. We implement initiatives at each site to reduce environmental load in accordance with these objectives, such as reducing CO₂ emissions, chemical substances used, industrial waste generated, and water used. The accomplishments are reported and reviewed semiannually in the Environmental Management Committee and the targets are revised as needed. The standard values are based on the results of the previous year.

2022-2025 Environmental Objectives and 2022 Results

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	BM*1	2022		2023	2024	2025
		Objectives	Results	Objectives	Objectives	Objectives
Reduction of CO2 emissions Scope1+2	Previous year's results	0.5%	0.6%	0.4%	0.4%	0.4%
Reduction of chemical substance use		0.9%	1.1%	0.7%	0.7%	0.7%
Reduction of industrial waste (reduction of hazardous waste*2 released)		1.2% (0.31%)	1.4% (0.24%)	0.7% (0.06%)	0.7% (0.06%)	0.7% (0.06%)
Reduction of water consumption		0.5%	0.5%	0.4%	0.4%	0.4%

• ·Performance is evaluated every six months, and target values for the next fiscal year and beyond are set after scrutinizing items for horizontal development at each business site.
• *1BM : Benchmark
• *2Hazardous waste is defined as "specially controlled industrial waste" stipulated by the Japanese Waste Management Law.

Reduction Objectives for Each Base of Operations (9 Manufacturing Bases in Japan)

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Site	BM	2022
		Reduction of CO2 emissions		Reduction of chemical substance use		Reduction of industrial waste		Reduction of water consumption
		Objectives	Results	Objectives	Results	Objectives	Results	Objectives	Results
Kyushu Factory (Nagahama, Imari)	Previous year's results	0.5%	0.6%	0.7%	1.0%	1.5%	1.9%	0.2%	0.3%
Kyushu Factory (Kubara, Imari)		0.4%	0.4%	2.0%	2.5%	1.0%	1.1%	0.01%	0.01%
Kyushu Factory (Saga)		0.4%	0.4%	0.2%	0.3%	0.3%	0.3%	0.1%	0.1%
Yonezawa Plant		0.9%	0.9%	4.4%	4.1%	3.8%	4.1%	0.1%	0.2%
Chitose Plant		0.3%	0.3%	0.03%	0.02%	0.0%	12.5%	0.1%	0.1%
JSQ Division		0.6%	1.8%	0.2%	0.0%	2.6%	5.2%	2.1%	2.1%
SUMCO Technology Corp. Noda Plant		3.7%	3.7%	0.1%	0.1%	0.0%	0.0%	0.4%	0.4%
SUMCO TECHXIV Corp. Nagasaki Plant		0.4%	0.5%	0.2%	0.2%	0.7%	0.7%	1.3%	1.3%
SUMCO TECHXIV Corp. Miyazaki Plant		0.5%	0.5%	0.1%	0.1%	0.0%	0.0%	0.9%	0.9%
Total		0.5%	0.6%	0.9%	1.1%	1.2%	1.4%	0.5%	0.5%

• As our efforts for reduction in CO₂ emissions, we have promoted reducing electricity usage by upgrading coolers, among other initiatives.
• As our efforts for reduction in use of chemical substances, we have promoted changing the chemicals used for wastewater treatment, among other initiatives.
• As our efforts for reduction in industrial waste discharge, we have promoted reducing sludge by installing waste liquid concentrators, among other initiatives.
• To reduce the amount of water used, we are working to improve the recovery rate of pure water used on-site and optimize the amount of blow water.

Environmental Risk Management

The SUMCO Group identifies environmental risks in the Basic Rules on Risk Management, including risk related to climate. Identified risks are incorporated into an initiative plan for environmental risks such as environmental pollution and extreme weather due to global warmings under the BSC and environmental management system. Then, the achievements are reported to the Environmental Management Officer as well as BSC and reviewed by top management.

Environmental Education

Education and Training Targeted at Suppliers to Increase Understanding of the Environmental Policies and Prevent Environmental Accidents

The SUMCO Group provides environmental education to supplier of chemicals and other products and to industrial waste treatment firms covering SUMCO's Environmental Policies, prevention of environmental accidents and compliance with laws and ordinances.
In 2022, we conducted online group training and document distribution training to prevent infection due to the COVID-19 pandemic. As for the results of the training, we receive training records from each company to confirm the level of understanding.

Environmental Accounting

In accordance with Ministry of the Environment's Environmental Accounting Guidelines 2005, the SUMCO Group calculates the results of our group (Japan) from January 2022 to December 2022.

Environmental Audits

Through the SUMCO Group, internal environmental audits are conducted by internal auditors, while environmental management system audits are implemented by an outside review organization.

Compliance with Environmental Legislation

The SUMCO Group identifies the requirements of laws, regulations and agreements and verifies compliance. None of the items which is incompliance with laws and regulations were found in 2022.
We also ensure compliance with overseas chemical substance regulations, namely the Restriction on Hazardous Substances (RoHS) Directive and Regulation on Registration, Evaluation, Authorization and Restriction of Chemical Substances (REACH).

State of Compliance with Environmental Laws and Regulations

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	5 years prior (2018)	4 years prior (2019)	3 years prior (2020)	2 years prior (2021)	Last year (2022)
Violations	0	0	0	0	0
Fines (yen)	0	0	0	0	0

Progress of Soil and Groundwater Contamination Countermeasures