Materiality Issues

In line with the Mid-term Management Plan (started in fiscal 2022) for fiscal 2024, after reviewing the status of the value chain surrounding the Group’s activities, its impact on the environment and society, and other issues to be taken into account, the Tokyo Seimitsu Group has revised its materiality as follows. By presenting specific initiatives and goals, we have clarified the issues that each employee needs to address and made it easier for them to understand the value of their work, thereby increasing their motivation. We will continue to revise our materiality as necessary and appropriate.

Changes in the Business Environment

Climate Change

Realization of a Digital Society and the Diverse Needs and Regulations Associated with a Digital Society

Development of a Highly Efficient/Optimal Social Environment and Infrastructure

Awareness of the Importance of a Sustainable Society

Tokyo Seimitsu’s Current and Future Business Trends

● Semiconductor Company

Emergence of Sophisticated Devices Aimed at the Realization of Society 5.0

Increase in the Number of semiconductors and electronic components

Innovation of Power Semiconductors (SiC/GaN) to Contribute to Decarbonization

Expansion of 3D Mounting (Advanced Packaging) Due to the Limits of 2D Package Miniaturization

● Metrology Company

Expansion of EV and Electrification Technology Markets Aimed at Carbon Neutrality

Increased Demand for Product Quality(Incorporation of Quality in Production Processes/Elimination of the Possibility of Defective Products Being Passed Forward for Back-end Processing)

Need for New Measurement Technologies in Expanding Growth Fields(Fields Including the Semiconductor,Aircraft, and Medical Fields)

Materiality Issues
E Environment	Products and business activities that contribute to resolving environmental problems
	Environmental contributions through the provision of products and services
S Society	High-value-added products that resolve social issues
	Supply chain development
	Creating a workplace where a diverse range of people can play an active role and are physically and mentally healthy and fulfilled in their work
	Respect for Human Rights
G Governance	Management foundation that supports corporate activities
	Compliance
	Stronger risk management

Sustainability Objectives and Priority Initiatives

The Tokyo Seimitsu Group has established sustainability objectives and priority initiatives in order to incorporate important issues (materiality) for the Group into concrete activities. The Sustainability Committee as well as teams and task forces created to address important issues formulate and implement action plans based on that framework.

	Sustainability objectives	Priority initiatives	Action Plans and Results
E Environment	• Prevention of global warming • Resource-saving activities • Formation of a recyclingoriented society	• Reduction of CO2 emissions • Reduction in consumption of electricity, water, and paper • Reuse of waste as resources • Environmentally friendly products • Chemical substances control	• Environmental Management • Climate Change • Environmental Contribution through the Provision of Products • Resource Recycling and Waste Reduction • Water Resources • Chemical Substances
S Society	• Respect for human rights	• Prevention of human rights violations	• Respect for Human Rights
	• Product liability	• Quality control • Stable supply of parts	• Quality
	• Reduction of procurement risk	• Reinforcement of the supply chain	• Supply Chain Management
	• Working environment • Health and safety • Diversity • Human resource development	• Labor standards • Health and safety • Increased diversity • Training program	• Occupational Health and Safety • Health Management • Diversity & Inclusion • Human Resource Development
G Governance	• Sustainable business growth • Enhanced competitive strength • Fair, transparent, and prompt corporate activities • Anti-bribery and anti-corruption	• Internal control • Audit function • Corporate ethics and legal compliance • Information disclosure • Whistleblower system • Compliance education	• Corporate Governance • Compliance
G Governance	• Crisis management against disaster	• Business continuity plan	• Risk Management

Process of Defining the Material Issues

Environment・Society・Governance

Environment

Society

Governance