Environmental Action Plan Environmental Action Plan

The Fifth Advantest Group Environmental Action Plan (FY2010-2012)
Results of initiatives under the Fifth Advantest Group Environmental Action Plan (selected topics)
Overview of the Sixth Advantest Group Environmental Action Plan (FY2013–2014)

The Fifth Advantest Group Environmental Action Plan (FY2010-2012)

Based on the theme of preparing for a low-carbon society, the Environmental Action Plan was established in April 2010, aimed at conducting environmental initiatives that reduce customers’ and society’s environmental footprint, give back to society and improve profitability. In line with this Plan, the Group is working to reduce the environmental burden it causes by focusing on the three areas of environmental management, environmentally friendly products, and more efficient business activities.

Scope

Scope of initiatives: The Advantest Group's nine business locations in Japan and seven business locations overseas (including affiliates)
Time period: Fiscal 2010 to fiscal 2012 (three years)

Results of initiatives under the Fifth Advantest Group Environmental Action Plan (selected topics)

Our environmental management initiatives involved applying the ISO 14001 standard in Japan and overseas, and achieving ongoing improvement in corresponding activities. We are now seeking ISO 14001 re-certification given our integration of the former Verigy Ltd. involving our key locations overseas, and in line with relocation of some of our business operations. Also, in the realm of environmental contributions, we engaged in numerous activities including forest conservation initiatives and volunteer efforts. In the area of environmental training, we worked to raise environmental awareness among our employees, through initiatives that included holding photography and art contests featuring works solicited from employees and family members based in Japan and overseas, and hosting lectures on the environment.

Our initiatives in the domain of environmentally-friendly products consisted of increasing the number of products subject to product environmental assessment, while also successfully making green products available in 31 of our product lines over the three-year plan. Consequently, in fiscal 2012 we hit the 100% mark in terms of our ratio of green product sales in our ATE product line. Meanwhile, we achieved a green procurement rate for general components purchased of 97.8%. The Advantest Group remains committed to offering our customers products and services that help them reduce their environmental loads.

Environmental measures we employed in the course of conducting business included measures to address global warming and resource recycling initiatives.
In regard to measures being undertaken to address global warming, our business locations in Japan are pursuing more rational energy use in line with our mid-to-long term plan. More specifically, thus far they have been engaging in efforts to streamline manufacturing operations and upgrade outdated facilities, along with measures to save energy after the Great East Japan Earthquake. These initiatives have enabled us to cut our emissions over the last three years by approximately 3,900 tons of CO2, to 17,673 tons in fiscal 2012.
(Fiscal 2009: 21,551 tons of CO2 à fiscal 2012: 17,673 tons of CO2)
Meanwhile, although our business operations overseas have adopted energy-saving initiatives, those locations have shown higher CO2 emissions due to our integration of former Verigy Ltd.

In the realm of resource recycling, we have been promoting "three R" practices — reduce, reuse and recycle — thereby achieving our target of less than 350 tons of waste generated by our business locations in Japan. In fiscal 2012, our operations generated 269.8 tons of waste, for a cumulative reduction of approximately 38 tons over the three year period. Meanwhile we recycled 67.6% of the waste generated by our overseas locations.

The Fifth Advantest Group Environmental Action Plan (FY2012)

Results of in-house assessment in fiscal 2011
◯= Progress ratio 100%
△= Progress ratio 70% or more
×= Progress ratio less than 70% or target date set back

Category	Objective	In-house Assessment	Key Results
Environmental management—Target: Prepare for a low-carbon future, and help society and build earnings through environmental management.
Environmental management	environmental management system to all facilities worldwide and enhance environmental management. (Expand ISO14001 certification to non-production facilities in Japan and internationally, and ensure that all major locations will be ISO14001-certified.)	○	Japan: Ongong implementation of ISO 14001 standard Overseas: AAI & ASP recertification completed. ATI, ATC, ATK, AEG recertification pending.
Environmental contributions	Continue to implement environmental contribution programs with the objectives of environmental contribution and ecosystem preservation.	○	Conducted three forest conservation activities (71 employees participated) Conservation activities at Kusatsu Yasuragi-no-Mori (Kusatsu-cho, Gunma Prefecture; October); Pruning cypress trees at Mt. Kabasawa satoyama (Sendai, Miyagi Prefecture; November); Tree planting event at Tori-ga-Saezuru Midori-no-Kairo (Kitakyushu, Fukuoka Prefecture; March) Organized the 16th Science Craft Day workshop for schoolchildren, attracting 164 local elementary school children and their families Special science course provided at Karakuwa Elementary School in Kesennuma, Miyagi Prefecture (29 participants)
Environmental training	Plan and continuously offer in-depth environmental training programs (e.g. seminars, lectures) that enhance employees’ environmental awareness.	○	Introduced environmental training system (approx. 2,700 participants) Organized lectures on the environment at three offices (277 employees participated) Held environmental photo contest (123 employees and family members in Japan and abroad participated) Held environmental art contest (110 employees and family members in Japan and abroad participated) Organized ecological tours for employees and family members (Taiwan) Participated in beach cleanup (Singapore)
Information Disclosure	Proactively disclose environmental activities-related information and seek in-depth communication with stakeholders.	○	Shared information (16 items) on the website. Published Corporate Report 2012 (website)
Environmentally friendly products—Target: Help customers to reduce their environmental footprint by expanding Advantest's lineup of products that conform to stringent environmental standards.
Green products	Energy reduction
	Reduce energy consumption of target products by 20% or more per unit function compared with comparable products.	○	Reduced energy consumption of two types of memory test systems (T5511 & T5811) by 70% or more per unit function compared with comparable products Reduced energy consumption of T2000 IMS 100MDM by 50% or more per unit function compared with comparable products Certified five automatic test equipment systems and four types of T2000 modules as green products. (31 systems approved as green products over three-year period)
	Using fewer resources and parts
	Reduce number of parts used in target products by 20% or more in comparison with previous models.	－	Pending review of initiative content
	Build target products 50% or more smaller than comparable models.	○	Completed evaluation of prototype board
	Eliminate hazardous substances
	Purchase only parts free from 15 targeted hazardous substances.	○	Green procurement rate for general components of 97.8%
Green product sales	Market green products intensively to help customers reduce their environmental footprint.	○	Achieved 100% target for proportion of green products among automatic test equipment sold Achieved target of 20% or more units sold with re-used device interfaces
Product recycling	Promote product recycling by expanding the Advantest Recycling System.	×	Recycled 16 units (52 units over three year term)
Business activities—Target: Improve efficiency for a smaller environmental footprint.
Global warming prevention	Reduce product CO₂ emissions per unit of manufacturing volume1 by 85%2 compared to fiscal 1990 1 : Number of units produced, calculated by comparing product performance 2 : Because the original target for fiscal 2012 has already been achieved, the target was revised to a 85% reduction compared to fiscal 1990	○	Reduced product CO₂ emissions per unit of manufacturing volume by 78% compared to fiscal 1990 Achieved target for number of Group companies and 100 teams engaged in the ECOCH energy conservation program
Manufacturing	Improve manufacturing efficiency for a smaller environmental footprint in the manufacturing process. (Improve board production efficiency, reduce lead times for tester production processes, and improve yield etc.)	○	Maintained automatic mounting machinery energy consumption at under 12 kWh (with increased production of T6373) Reduced the number of days T5773 is powered on from 17 to seven Maintained energy-conservation initiatives of Sendai Factory Building A, and cut energy consumption by 11.6% compared to fiscal 2009
	Support suppliers' environmental activities to reduce the environmental footprint of Advantest's entire supply chain.	○	Informed suppliers of the Advantest Group Environmental Policy and the Guidelines of Action for Biodiversity
	Promote reuse of packaging materials to reduce annual waste by at least 1,000 kg by 2012.	－	Activity pending review of operations
Resource recycling	Promote three-R practices (reduce, reuse, recycle) to reduce waste generated to under 350 tons	○	The volume of waste generated amounted to 269.8 tons (38 tons less than in fiscal 2010)
Environmental risk management	Reinforce monitoring to ensure strict observation of environmental laws and regulations and related facilities to prevent accidents.	○	Zero accidents, zero complaints.
Chemical substance managemen	Improve penetration and efficiency of chemical substance management. Construct a global management system.	○	Conducted ongoing inventory checks of chemical substances level 3* and above *Defined as poisonous, deleterious and other highly toxic substances that need to be reported when missing Introduced system for general education on chemical substances, and conducted sessions
Overseas affiliates (global warming prevention)	Enact measures to reduce energy consumption at Advantest's overseas business locations and lower electricity usage.	－	CO₂ emissions; 8,345 tons
Overseas affiliates (resource recycling)	Enact measures to reduce consumption of resources at Advantest's overseas business locations and minimize waste volumes.	－	Volume of waste generated: 126.9 tons Recycling rate: 67.6%

Overview of the Sixth Advantest Group Environmental Action Plan (FY2013–2014)

Up until now, the business activities of Japan-based operations of the Advantest Group have accounted for a majority of the Group's environmental load. In recent years, however, the environmental impact of our overseas operations has swelled due to factors such as our integration of former Verigy Ltd. and expanding production abroad.
The Sixth Advantest Group Environmental Action Plan (FY2013–2014) carries forward the Fifth Advantest Group Environmental Action Plan's three key initiatives in the realms of environmental management, environmentally-friendly products, and efforts to reduce environmental loads generated by our business activities. Meanwhile, the new plan also calls for initiatives designed to help encourage a more recycling-oriented mindset and low-carbon economy. We are also expanding the scope of our initiatives, adding new objectives toward addressing the issue of climate change for the year 2020, and setting worldwide targets for the two-year duration of the plan.

Environmental management: Pursue environmental management initiatives that improve society while increasing the Group's capacity for earnings.
Environmentally-friendly products: Engage in core ventures and opportunities peripheral to the tester business that help our customers reduce their environmental loads.
Business activities: Promote responsible initiatives in the form of measures to help combat climate change, activities related to the conservation of biodiversity, and environmental management practices.

Coverage of plan

Scope of initiatives: The Advantest Group's nine business locations in Japan and seven business locations overseas (including affiliates)
Time period: Fiscal 2013 to fiscal 2014 (two years)

The Sixth Advantest Group Environmental Action Plan (FY2012)

Major-category	Objective	Sub-category (Objectives & measures for pursuing initiatives)
Environmental management—Target: Prepare for a low-carbon future, and help society and build earnings through environmental management.
Environmental management	environmental management system to all facilities worldwide and enhance environmental management.	Reacquire ISO 14001 certification by the end of fiscal 2013 at overseas bases that were relocated upon integration.
Environmental contributions	Continue to implement environmental contribution programs with the objectives of environmental contribution and ecosystem preservation.
Objectives pertaining to environmentally-friendly products: Engage in core ventures and opportunities peripheral to the tester business that help our customers reduce their environmental loads.
Development of green products	Energy reduction
	Reduce energy consumption of target products by 20% or more per individual DUT measurement relative to comparable products.
	Using fewer resources and parts
	Reduce energy consumption of target products by 50% or more per unit function compared with comparable products.
	Make target products at least 30% smaller than comparable models.
	Make target products at least 50% smaller than comparable models.
Objectives regarding business activities: Promote measures to help combat climate change, activities related to the conservation of biodiversity, and environmental management practices.
Measures to combat climate change (business activities)	Formulate quantitative benchmarks for 2020 for: Total volume of CO₂ emissions resulting from energy consumption at current business locations Amounts of renewable energy consumed at business locations in Japan and elsewhere
Measures to combat climate change (business activities)	Reduce energy consumption by at least 66 kl per year crude oil equivalency in fiscal 2012 (96 tons of CO₂).
(Manufacturing)	Improve manufacturing efficiency for a smaller environmental footprint in the manufacturing process. (Improve board production efficiency, reduce lead times for tester production processes, and improve yield etc.)	Reduce by 25% number of man hours for mounting device set-up for new production boards (ASPEN1, etc.) and reduce by 30% the amount of energy required for production on a single-unit basis. By the end of fiscal 2014, achieve 40% less energy use during production relative to initial production machine system performance, by shortening adjustment lead times. Shorten production power-on hours of primary production equipment system by 30% compared to fiscal 2012 levels. Achieve energy-efficient operation of clean rooms (2% less energy compared to fiscal 2012). Reduce number of varieties of organic solvents in use (cut by 30% compared to fiscal 2012).
(Manufacturing)	Reduce use of reinforced carton (corrugated board) for packaging by 4,000 kg compared to fiscal 2011 level
Biodiversity	Promote awareness of initiatives for conservation of biodiversity and reduction of environmental loads across Advantest's entire supply chain by conducting surveys of environmental activities of our suppliers.
Conflict materials	Conduct investigations regarding conflict materials to help ensure that items procured are free of such materials.
Resource recycling	Recycle 85% or more of the waste generated at our overseas locations by the end of fiscal 2014. (Waste recycled at overseas locations: 75%; Maintain a rate of at least 99% at Japan-based operations)
Environmental risk management	Reinforce monitoring to ensure strict observation of environmental laws and regulations and related facilities to prevent accidents.
Chemical substance managemen	Improve penetration and efficiency of chemical substance management. Construct a global management system.