With Earth

The Sansha Electric Group considers the preservation of the global environment to be "our responsibility to the next generation" and recognizes that reducing the environmental impact of our business activities is one of our most important tasks, and we are accelerating our global environmental preservation activities.

Sansha Electric Manufacturing Group Environmental Policy

The Group is aware that conservation of the global environment is a corporate social responsibility. We will work to reduce environmental impact and consider biodiversity to aid the realization of a sustainable society.

Observance of environmental laws and regulations
We will observe environmental laws and regulations and meet equivalent requirements.
Prevention of global warming
We will work to reduce greenhouse gas emissions from business activities
Contribution to a recycling-oriented society
We will strive to minimize waste and efficiently use resources to aid the realization of a sustainable recycling-oriented society.
Reduction of hazardous substances
We will work to reduce emissions of substances that adversely impact the environment and to prevent pollution
Consideration of biodiversity conservation
All our personnel will be aware of importance of conserving biodiversity and act in due consideration of it.
Reduction of the environmental impact of products
We will always strive to create environmentally-friendly product designs to provide products with little environmental impact throughout their life cycle
Continuous improvement of the environmental management system
We will be aware of impact our business activities and products have on the environment and work to continuously improve our environmental management system.

May 2010 Established
April 2023 Revised

Environmental Management System

The board of directors decides on the policy.Subsequently, the management planning meeting discusses the approach.Furthermore, the Environmental Management Promotion Committee then drafts specific measures.Finally, each business site and department implements the measures.

The Board of Directors determines the basic policy on environmental initiatives and the Corporate Planning Conference, which is attended by the President and Executive General Managers, discusses specific actions and studies measures. Specific initiatives related to environmental protection and energy conservation are planned by the Environmental Management Implementation Committee, which meets regularly. The plans are discussed at the Corporate Planning Conference and decisions on them are made by the Board of Directors.
The Environmental Management Implementation Committee is composed of managers from individual departments and bases, and the Quality and Environment Planning Department acts as the administrative office for this committee.

Observance of Environmental Laws and Regulations

We understand the laws and regulations that apply to group companies as well as those that we should observe, and evaluate compliance regularly to ensure laws and regulations are observed.

ISO14001 certifications we have acquired

Certification body	Japan Quality Assurance Organization
Registration number	Semiconductor Manufacturing Division	JQA-EM7548
Registration number	Power Supply System Manufacturing Division	JQA-EM7051
Date of registration	Semiconductor Manufacturing Division	June 28, 2019
Date of registration	Power Supply System Manufacturing Division	February 14, 2014

Global Warming Prevention Initiatives

Towards Carbon Neutrality in 2050

The two targets are "Reducing CO2 emissions by 46% across the entire group by 2030 (compared to 2013 levels)" and "Achieving carbon neutrality by 2050."

The Sansha Electric Manufacturing Group aims to reduce its CO2 emissions by 46% from the FY2013 level by FY2030 and to achieve carbon neutrality in its business activities in 2050 with a view toward the establishment of a decarbonized society. We are working to conserve energy and utilize renewable energy to help establish a sustainable future.

With ongoing initiatives, including capital investments, we are taking steady steps toward the achievement of our medium- and long-term greenhouse gas (GHG) emissions reduction targets. In FY2024 in recognition of our ongoing energy conservation activities, we were classified as a Class S operator with outstanding energy conservation initiatives under the benchmark program run by the Agency for Natural Resources and Energy which is a part of the Ministry of Economy, Trade and Industry. This rating is awarded to operators deemed to be conducting distinguished initiatives for the rationalization of energy use in regular reports under the Act on Rationalization of Energy Use and Shift to Non-fossil Energy. This is a recognition of our ongoing energy conservation activities.

CO₂ reduction effect of products due to their use

Estimated contribution of major product groups to the reduction of CO₂ emissions
Bar graph showing estimated CO₂ reduction contribution by major product groups. Shows reduction contributions of 4,908 tons and 885 tons for fiscal year 2024, 19,445 tons and 1,432 tons planned for fiscal year 2025, and 32,268 tons and 1,791 tons planned for fiscal year 2026.

The Group works to develop products with enhanced power conversion efficiency to control CO₂ emissions. We quantitatively calculate CO₂ emissions reductions due to the use of our power supplies and semiconductor products to help reduce the GHG emissions of society as a whole. As shown in the diagram on the right, the reduction of environmental impact that is attributable to the use of our products is growing every year.

Calculating CO₂ emissions reductions

The amount that power consumption is reduced due to the improved efficiency of products is converted into a CO₂ emissions volume using the emissions factors published by the International Energy Agency (IEA). To calculate the CO₂ emissions reduction attributable to the product group, this figure is multiplied by the projected annual sales volume of each product group.

Diagram showing the flow of converting power consumption reduction to CO₂ and expressing it as CO₂ reduction amount.

CO₂ Reduction Initiatives

Sansha Electric Group aims to reduce CO₂ emissions by 46% by 2030.
In 2014, the Shiga Plant was the first to install solar power generation equipment, and the Okayama Plant and Sansha Solution Service have installed solar power generation equipment for their own consumption.
The annual power generation is equivalent to the electricity consumption of 227 households.

Actions at Okayama Plant

Achieving a departure from fossil fuels

The Okayama Plant accounts for approx. 80% of the entire Group's total power consumption. At the plant, we have replaced the lighting system with an LED lighting system and introduced an Energy Management System (EMS). In addition, of two cleanroom buildings (Buildings A and B) that consume huge amounts of electricity because of the strict air-conditioning management that is required, we improved the efficiency of Building B's outside-air-processing air conditioners by renovating the existing heat source equipment (cold water chiller and steam boiler) to use a high-efficiency, air-cooled heat pump chiller and we also introduced variable flow control. Further, we have begun to use waste heat from production equipment to preheat and reheat outside air and we adopted a dry fog system for humidity control, which has led to the termination of steam humidification, which was the greatest challenge.

High-efficiency air-cooled modular chiller at the Okayama Plant
Heavy oil consumption at the Okayama Plant (liters)

Environmental Preservation Initiatives

Waste Reduction Achieved by Ending the Use of Plastic Packing Materials

Waste emissions and recycling ratio
Total waste emissions have been gradually decreasing, while the recycling rate has reached 97.9% in fiscal year 2024. Target: Sansha Electric Manufacturing Co., Ltd. and domestic group companies

Our plants have been using reusable shipping containers and taking other actions in an effort to minimize waste emissions from business activities and to reduce packing materials and cushioning materials. In the future, at the Okayama Plant, we will successively replace plastic packing materials with cardboard for new products in a bid to reduce plastic consumption.

Efforts to Efficiently Use Water Resources

Water consumption
Industrial water consumption and unit consumption have been decreasing year by year. Target: Sansha Electric Manufacturing Co., Ltd. Okayama Plant

In recent years, climate change has resulted in many different water resource-related problems, including droughts and resulting water shortages and flooding. To establish a sustainable society, businesses must more efficiently use water resources. The semiconductor manufacturing process necessarily consumes tremendous volumes of pure water for etching and cleaning and the cooling of equipment. Our target at our Okayama Plant is to reduce its water consumption intensity, the amount of water consumed per wafer of production volume, and we are continuously working to improve to effectively use water resources. In FY2024, water consumption intensity was higher than in the previous fiscal year, but total water consumption decreased due to a decrease of production volume. This made us realize how changes in the production volume impact water consumption intensity. This provided us with suggestions for stepping up our initiatives in the future. We will continue to review our processes to more efficiently use water resources and reduce our environmental impact. Through these activities, we will strive to build a sustainable production system.

Initiatives for Controlling Water Quality

Wastewater volume and chemical oxygen demand (COD) load

The Okayama Plant properly treats the wastewater emitted from its manufacturing processes using our private wastewater treatment facility to ensure that the water we discharge meets our internal standards which are stricter than the laws and regulations. In addition to reducing and detoxifying hazardous substances, we thoroughly collect substances that are difficult to detoxify. Through these efforts, we are working to enhance our management activities to protect the quality of water. To carefully monitor the quality of the water we discharge, we perform water quality inspections regularly, constantly improve operations and ensure that risks are managed. In FY2024, the volume of water discharged and chemical oxygen demand (COD) were both lower than in the previous fiscal year due to the decrease of the production volume. We will continue our management activities and other efforts to minimize our impact on the water environment.

Energy conservation efforts in the clean room at the Okayama Plant

The Okayama factory's overall energy usage was reduced by 19% compared to the fiscal year 2013. The energy consumption per unit was reduced by 26%. CO2 emissions were reduced by 34%.

Our Okayama Plant, which accounts for approximately 80% of our group's energy consumption, has been working on "moving away from fossil fuels" since fiscal year 2013. Their efforts in achieving energy conservation have been recognized, and they have been awarded "The Energy Conservation Center, Japan Chairman's Award" in the Best Practice Category of the "2023 Energy Conservation Grand Prize."

Overview of the Initiative

We improved two factory buildings that require high cleanliness levels.
From fiscal year 2017, we implemented LED lighting and introduced an energy management system, while also enhancing the efficiency of the outdoor air treatment air conditioning system in Building B. Specifically, we replaced the existing heat source equipment (cold water chillers and steam boilers) with high-efficiency air-cooled heat pump chillers, and simultaneously improved the variable flow control. Furthermore, we adopted waste heat recovery from production equipment for outdoor air preheating and reheating, and implemented a dry fog system for humidity control, which led to the elimination of steam humidification, our biggest challenge. Following Building B, we completed the renovation of Building A, achieving energy conservation in both buildings.

Initiatives for managing the chemical substances contained in products

The Group more strictly manages the chemical substances contained in our products to comply with the laws and regulations that impact our products. To follow the European Union’s Directive on Restriction of Hazardous Substances (RoHS),*1 we are transitioning to lead-free solder and hexavalent chromium-free items. We are investigating the products that require response actions and confirming that we conform to the RoHS Directive, the Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) Regulation*2 and similar regulations. Recently, we conducted a study on banned substances in accordance with the Act on the Regulation of Manufacture and Evaluation of Chemical Substances and introduced alternative substances as needed to comply with the law.

*1: RoHS Directive: A directive related to restriction on use of specific hazardous substances in electrical and electronic equipment, etc.
*2: REACH Regulation: The European Union’s regulation on registration, evaluation, authorization and restriction of chemicals. It also applies to the chemicals contained in products. Products exported to the EU must comply with it.

Management system

Examples of Initiatives

Protecting the environment	Under the Sansha Electric Manufacturing Group Environmental Policy, we minimize the environmental risks of chemical substances by reducing the use of such substances by improving the manufacturing process and productivity. Pursuant to the PRTR Act, we check and aggregate the amounts of chemical substances handled, emitted, and transferred outside and observe regulatory requirements. * PRTR Law Establishes a system under which the sources and quantities of chemicals that involve environmental pollution risks that are released into the environment, such as the air, water or soil, and the quantities of these chemicals that are moved in the form of waste (amount transferred outside) are assessed, calculated and published.
Ensuring safety	We take thorough measures to manage chemical substances appropriately and ensure safety throughout the process from purchase to manufacturing and disposal. We ensure the safety of employees by strengthening measures to handle accidents and work management.
Tracking and updating information	We obtain safety data sheets (SDS) to update information regularly and take appropriate measures when relevant laws have been revised. We establish a system for responding immediately to new information and regulatory requirements at engineering department and manufacturing sites.
Sustainability initiatives	We promote the use of sustainable materials such as selecting those with a low environmental impact when adopting new materials. We will use resources efficiently by improving production process and yields.
Training	We provide employees with training related to the safe handling of chemical substances and the latest information about them, thus raising awareness. We communicate closely with stakeholders and share information about the management of chemical substances while securing transparency.