Materiality (Key Issues)

As materialities, SUMCO identifies those issues it will address on a priority basis to solve social issues and enhance corporate value in a sustainable manner while responding to demands from stakeholders.
A consensus has formed that companies should work to address global environmental (E), social (S) and governance (G) issues, and this is also met with rising expectations from investors. Having grasped these social changes, SUMCO proceeded with steps in the identification process and identified ten issues.
Moving forward, SUMCO will work to ensure promotion with the aim of achieving the materiality goals while disclosing the implementation status and results to stakeholders.

The Materiality Identification Process

step

vison

intangible assets

SUMCO Materiality

Materiality Material Issue Themes Reasons for Identification
E Combatting Global Warming Reduction of CO2 emissions
Reducing the environmental impact in our business activities is a corporate responsibility for the future.

To ensure that our irreplaceable global environment is passed on to the next generation, the SUMCO Group has developed an environmental management system and obtained ISO 14001 certification for all of its plants.

We also conduct environmentally friendly production activities including the prevention of global warming, the effective utilization of water resources and the reduction of waste and emissions.

To prevent global warming, we have set and are working on the long-term goal of reducing CO2 emissions by 14.9% by 2030 (compared with 2014 levels).

Resource Conservation Activities Effective utilization of water resources
Contributing to the creation of a recycling-oriented society Waste management
S Health, hygiene and safety Initiatives Prevention of occupational accidents
Under the principle that "the safety and health of employees take the highest priority over all," the SUMCO Group is committed to "creating a safe and pleasant workplace environment supporting good mental and physical health" through active communication in which all parties participate.

On safety, we work to maintain and improve our occupational safety management system with the aim of creating a safe workplace free from occupational accidents, and with regard to health management, activities are focused on the three issues of mental health, smoking cessation and lifestyle habits.

Maintenance of health and productivity management
Human resources development Enhancement of training
To be the "World's Best in Technology" and "Empower Employee Awareness of Profit" as declared in the SUMCO vision, we will continue to invest in human resources and make enhancements to our career development program.

We will enhance training opportunities with a multi-faceted approach that covers everyone from new employees to managers and officers.

R&D and technological capabilities supporting customer value creation Contributions as a development partner
The source of enhanced corporate value is R&D and technological capabilities that support customer value creation through our "invisible assets," and as a development partner to customers, SUMCO enjoys a high global market share in cutting-edge products.

Moreover, we will contribute to the achievement of the SDGs, which are social issues affecting the entire world, by supporting advances in semiconductors.

Increasing customer satisfaction
To continually maintain our "first call" status as a company, we value close communication with customers.

By quickly providing customers with the products that meet their needs while continuing with performance checks and follow-ups, we build robust relationships of trust.

We analyze the information customers provide through QCDS (quality, cost, delivery and service) evaluations, share the insights with management and relevant departments, direct what we have learned into improvement activities and strive to improve customer satisfaction levels.

Promoting CSR procurement and mitigating procurement risks Promoting firm establishment of the CSR Procurement Policy
We believe it is important to share CSR-related societal demands with our suppliers and jointly tackle issues in the supply chain such as human rights, labor, safety, the environment and ethics.

We share the SUMCO CSR Procurement Policy with suppliers through briefing sessions, audits and other activities, and promote responsible procurement activities.

Strengthening BCP in materials procurement
Supply chain risk management is an important issue and a theme to which customers also have high levels of interest.

SUMCO secures appropriate levels of inventory in line with risks, pursues advance preparations such as ensuring multiple procurement sources under normal circumstances, and has established the necessary systems to minimize the impacts on production in the event of a disaster or accident.

Communication with shareholders and investors Enhancement of IR activities
We fully recognize that the timely and appropriate disclosure of corporate information to investors forms the basis of a sound stock market and have adopted the basic policy of continually ensuring the prompt, accurate and fair disclosure of corporate information from the perspective of investors.

We proactively disclose any information that is beneficial to investment decisions, such as medium-to-long-term demand forecasts for the silicon wafer market based on end product demand forecasts.

G Enhancing risk management Initiatives to develop BCP
The silicon wafer business is a critical industry supporting an IT-based society, and the SUMCO Group is responsible for ensuring the stable supply of silicon wafers to the world's semiconductor device manufacturers.

The Business Security Committee (BSC), which is an organization responsible for risk management, promotes risk management activities while working to improve business continuity and the ability to respond in an emergency through periodic training.

Promoting compliance Ongoing enhancement of compliance awareness
Ensuring compliance with laws, regulations and social norms to be observed forms the basis for SUMCO fulfilling its social responsibilities and is also essential for the sustainable growth of corporate value.

Training on topics including the SUMCO Charter of Corporate Conduct, which prescribes the norms to be observed by employees, is conducted regularly for all employees as part of ongoing efforts to strengthen awareness of compliance.

SUMCO Materiality Targets

Materiality Material Issue Themes Targets
E Combatting Global Warming Reduction of CO2 emissions By 2030, reduce CO2 emissions (Scope 1+2) per unit by 14.9% compared with 2014 levels (average reduction of 1% every year)
Resource Conservation Activities Effective utilization of water resources High and stable water recycling rate
Contributing to the creation of a recycling-oriented society Waste management Conversion of waste into valuable resources and improved recycling rate
S Health, hygiene and safety Initiatives Prevention of occupational accidents Accident frequency rate of 0.2 or lower
Maintenance of health and productivity management Maintaining certification in the Health & Productivity Management Outstanding Organization Recognition Program (White 500)
Human resources development Enhancement of training Increasing training time compared with the previous year by utilizing web-based training
R&D and technological capabilities supporting customer value creation Contributions as a development partner Maintaining a worldwide share or over 50% in cutting-edge fields
Increasing customer satisfaction Maintaining high evaluation with the leading customer satisfaction score
Promoting CSR procurement and mitigating procurement risks Promoting firm establishment of the CSR Procurement Policy Holding briefing sessions for suppliers and conducting CSR audits
Strengthening BCP in materials procurement Continuing to maintain multiple procurement sources and implementing supplier safety training
Communication with shareholders and investors Enhancement of IR activities Maintaining the number of IR activities for investors
G Enhancing risk management Initiatives to develop BCP Implementing BCP training
Promoting compliance Ongoing enhancement of compliance awareness Implementing compliance education

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