2019 Environmental Report

KIOXIA Corporation Yokkaichi Plant Introduction

Overview

Founded January 1992 General manager Tomoharu Matsushita Location Yokkaichi Plant: 800, Yamanoisshiki-cho, Yokkaichi-shi, Mie,

Asahi Test Center: 2000, Nao, Asahi-cho, Mie-gun, Mie, Japan Site area Yokkaichi Plant: 620,000 m2 including car park Asahi Test Center: 47,862 m2

Number of employees 6,700 (As of April, 2019)

Major products Semiconductor memory (NAND-type flash memory, Solid state drive (SSD))

Products

■ Three-Dimensional Flash Memory : BiCS FLASH™

■ NAND Flash Memory with an Integrated Controller

■ SLC NAND Type Flash Memory

■ SSD (Solid State Drive) BiCS FLASH™ Enterprise SSD Client SSD ■ Personal memory products (Memory cards, USB flash drives)

SDXC Memory Card microSDXC Memory Card Wireless SDXC Memory Card

Application

Digital Camera Smartphone Smartwatch Car Navigation

1 Contents

Introduction 1 Overview 1 Products 1,2 Application 1,2 Environmental Policy 3 Message from the General Manager 4 Topics in 2018 5,6

Environmental Protection 7 Monitoring System 7 Case Study 7 Environment-related Facilities 8 FAQ 8

Environmental Management System 9 ISO14001 9 Environmental Protection Structure 9 Environmental Target 10 Features of BiCS FLASH™ Management of Chemical Substances 11 The vertically stacked three dimensional (3D) flash memory, Reduction of Chemical Substances 11 BiCS FLASH, has far higher die area density compared to the prior state-of-the-art technology, two­dimensional (2D) USB Flash Drive High-efficiency Manufacturing 12 NAND flash memory. BiCS FLASH reduced the power consumption per unit of Reduction of Greenhouse Gases 12 programing data by increasing the amount of data for a single-shot programming sequence compared to the 2D Reduction of Energy-derived CO2 12 NAND flash memory. Reduction of Wastes 13 Thanks to its improved read/write speed, BiCS FLASH requires less power to process the same amount of data Reducing the Environmental compared to the 2D NAND flash memory. Also, increasing Impact of Products 14 Management of Chemical Substances the memory capacity per chip by boosting the number of in 14 stacked cells will result in resource saving. Products In this way, BiCS FLASH contributes to increase capacity, and Green Procurement 14 reduce space for storage products in which it is installed.

Communication 15 Education and Training 15 CSR and Regional Communication 16 Evaluation from External Parties 17

Data 18 Compliance with Laws and Regulations 18 Environmental Impacts 19 Environmental Accounting 19 AV System Industrial Robot Server PRTR 19 History of Yokkaichi Plant 20 History of Environmental Activities 20

2 Environmental Policy

Kioxia Group’s Environmental Policy – Mission – Kioxia Group’s Environmental Policy ensures we conduct business in a way that enhances and preserves the environment. Through purposeful, sustainable actions, we’re prioritizing being responsible stewards of the environment to do our part in maintaining our planet’s health for years to come. – Polisy – In addition to complying with environmental laws and regulations in the regions in which it operates, Kioxia Group considers environmental stewardship to be one of our primary responsibilities. We take actions to limit our environmental impact throughout our supply chain of memory, applied and related software products that support information infrastructure. From taking systematic and globally accredited steps to reduce our pollution and greenhouse gas emissions from our manufacturing processes, to regularly auditing and reviewing our activities to constantly improve our environmental management system, Kioxia Group takes deliberate action to ensure efficient and effective operations. – Implementation – 1) We strive to make sustainable memory, applied and related software products by using high-capacity, miniaturized and power-saving technologies. We also perform ongoing environmental assessments of our products and manufacturing processes, as well as a targeted effort to reduce our overall raw material usage. 2) We are doing our part to help prevent global warming through initiatives that directly reduce greenhouse gas emissions. This includes the development of energy-saving technologies – especially within power systems and manufacturing machinery – productivity improvements and introducing clean energies. 3) We purposefully take actions aligned with the “three Rs” – reduce, reuse, recycle. Specifically, we focus on developing resource-saving technologies and implementing productivity efficiencies, as well as limiting the use of water resources around our plant sites and returning water used in production to the environment after effective purification treatment. 4) We limit environmental risk in our operations by being conscious of the chemicals we use in production and developing technologies that reduce our use of certain chemicals. Through responsible handling and management of production-related chemicals, we also strive to prevent associated pollution. 5) We strive to reduce the impact of our business activities on biodiversity, and pursue activities that aim to preserve biodiversity in order to help conserve the environment. 6) We regularly disclose information and updates on our sustainability efforts – including new energy-saving technologies – through environmental advertising, exhibitions and media and collaboration with various stakeholders including the local communities in which we operate. 7) We underscore the importance of environmental stewardship with our employees, who promise to keep sustainability top-of-mind in all business activities.

This Environmental Policy is core to Kioxia Group’s operations – it is available internally to global employees of Kioxia Group and externally to customers, media and the general public. We are committed to pursuing corporate activities that are in line with this policy.

February 1, 2020

President and Chief Environmental Officer Kioxia Holdings Corporation

3 3 Introduction

Message from the General Manager

Tomoharu Matsushita Manager Exective Officer Chief Production Officer and General Manager, Yokkaichi Plant

Kioxia Corporation, Yokkaichi Plant is one of the largest NAND is used by people all over the world, and it became semiconductor plants in the world. NAND type flash memories indispensable to our daily lives. Recently, the range of (hereinafter called "NAND"}, which are embedded in various utilization has expanded also to the field that deals with big digital products, such as rapidly spreading smartphones, are data such as cloud. The amount of information generated by sent out to the world from here in Yokkaichi. Yokkaichi Plant is humankind is predicted to continue to increase. The NAND that a production plant with state-of­the-art production equipment, we create is expected to play an important role to memorize and also development base. At the same time, it is "a plant that information around the world and to convey them to future actively promotes efforts to reduce environmental impact," generations. sincerely tackling global environmental problems facing Currently, we operate in the world from the mankind. Yokkaichi City with rich nature, human resources, excellent We have expanded fabrication facilities with the extension of industrial base. This is the result of the understanding and the market. Fab 5 started operation in 2011, and new Fab 2 support of local residents and the public. Going forward, we will that produces only three-dimensional flash memories started continue to implement necessary measures, promote CSR- operation in 2016. Furthermore, Fab 6 that produces only based management toward fulfilling our social responsibilities three-dimensional flash memories started operation in 2018. and seek to contribute to the realization of a sustainable future In the Fab 6, we will introduce leading-edge environmental through business activities that place the highest priority on technologies in the manufacturing processes such as the human life, safety and compliance. installation of LED lighting systems, sophisticated and energy Yokkaichi Plant is making a united effort to gain the trust of its saving equipment. stakeholders, including neighboring residents and the public. NAND is used as a storage component for ”storing" As we do so, I ask for your understanding and continued information installed in portable media such as USB flash support. drives, smartphones, tablets, personal computers, and digital cameras.

4 Topics in 2018

Owl Protection Ploject

We are making efforts to understand how our business activities We support the activities of the study association together that may have an impact on biodiversity as well as what kind of with the community through the provision of materials to impact such activities have on biodiversity, in order to minimize observe the nesting activity of owls based on partnership. As their impact on ecosystems. The Nature Study Association of a part of their partnership, employees of our plant installed Yokkaichi-Nishi High School is promoting the ”Owl Protection a solar panel and camera to observe owl in one of the Project” at the northern region of Suzuka Mountains. Mie birdhouses set up in the Mie Prefectural Forest by Yokkaichi- Prefecture, Yokkaichi-shi, -shi, Komono-cho, and Yokkaichi Nishi High School. After that, owl spawning was observed in Plant, those who endorsed this activity, concluded the Mie March 2019. The chick hatched in April and left the nest in Biodiversity Partnership Agreement in March 2018. May.

Spawning (March 13, 2019) Hatching (April 11, 2019) Leaving the nest (May 13, 2019)

■Observation System Cameras for monitoring inside and outside the nest box Digital Video Recorder

Inverter

Solar Charge Controller Wireless Rooter

Installing solar panels (Januar 28,2019)

●Viewing live and recorded video with a smartphone ●Motion detection by e- Solar Panels Batteries mail

Installing cameras (January 30, 2019)

5 5 Introduction

Environmental classes for children

In addition to environmental classes at nearby elementary friendly living. schools, we held an environment class at the Yokkaichi Furthermore, it became an opportunity to know our plant Pollution and Environmental Future Museum in August 2018 through a virtual reality experience in our clean room. for the first time. Elementary and junior high school students In the future, we will continue to hold environmental class at and their parents took the class, learned about global warming the Yokkaichi Pollution and Environmental Future Museum. through experiments, etc., and considered environmentally

Yokkaichi Pollution and Environmental Future Museum

Planting flowers

We have been developing activities to fill this plant with flowers in order to improve environmental awareness, image up, and create a healing space for employees from June 2017. In July 2018, we held a fourth replanting event, and many employees from each division participated.

Replanting event

Environmental internship

Two Mie university students took part in our environmental through the experience of environmental works such as our internship program in September, 2018. It became a good environmental management system, environmental measurements, opportunity to consider their own future work and career and waste controls.

6 Environmental Protection

Monitoring System

We continuously manage the water and gas discharged by Yokkaichi Plant discharges under our own voluntary guidelines to ensure compliance with all appropriate laws and regulations.

1 Items specified by Laws Automatic analyzers perform around-the-clock monitoring of wastewater and waste gas for nitrogen oxide (NOx), sulfur oxide (SOx), total nitrogen (T-N), total phosphorus (T-P), chemical oxygen demand (COD), suspended solids (SS), fluorine, and potential of hydrogen (pH). Other items are monitored by samplings.

2 Items not specified by Laws Substances other than laws and regulations are managed voluntarily by sampling.

3 Analysis Center An analysis center has been set up in Yokkaichi plant to analyze 35,000 cases annually.

Automatic Wastewater Analyzer Automatic Soot Analyzer Analysis Center

Case Study

The following graph shows the position of voluntary control value, taking COD as an example.

Chemical Oxygen Demand in Wastewater mg/l 140 ≦120 120 COD destiny is 1/30 of t Pollution Prevention A 100

80

60 he Water ct. 40 ≦20 20 ≦4.5 ≦4.0 2.9 0 Law Ordinance Agreement Voluntary Actual in FY2018 control value

7 Environment-related Facilities

In order to prevent contamination by chemical substances and reduce contamination risk, KIOXIA has established its Structural Design Guidelines to reduce the risk of a leak of chemicals at environment-related facilities.

Waste gas scrubber Overhead piping Drainage dike

Examples

Structures and specifications Preventing wastewater from for stable processing Reducing soil contamination risks discharging into under or public water areas

Recycling building Wastewater treatment Double joints in piping Six-sided inspection

Stricter control and preventing Stable processing system and Monitoring and preventing liquid Seismic structure to store safely, outflow of wastes (pit, Catch basin) preventing outflow of wastewater leakages Drainage dike, Oil level alarm

FAQ

Q What is the smoke on the roof of the building? A Because air exhausted from a cooling tower is cooled by fresh air, it becomes the steam and looks white.

Cooling tower Smoke on the Roof

8 Environmental Management System

ISO14001

Having established an environmental management system and targets for reducing environmental impact, preventing pursuant to ISO14001, Yokkaichi Plant is striving to achieve pollution, and developing products that consider environmental continual improvement. We assess environmental aspects, impact, and are proactively implementing environmental including biodiversity, related to our operations, products measures. and services. We have established environmental objectives

External and internal issues Needs and expectations of interested parties

Scope of the site environment management system

Planning Act Plan

Improvement Leadership Support, Operation

Check Do Performance evaluation

Intended outcomes of its EMS

Environmental management system model

Environmental Preservation Structure

To promote environmental preservation activities continually and on environmental preservation, for discussing the entire efficiently, we have established an environmental preservation spectrum of environmental activities including EMS. structure with the General Manager in the highest position, and We have established a Compliance Committee, to supervise have defined responsibilities and authorities clearly. compliance with environmental laws and ordinances, in An Environment Management Committee is deliberative organ order to ensure full compliance.

■Yokkaichi Plant Environental Preservation Structure

Environmental protection officer : General manager

Compliance committee Internal environmental Environment management auditor committee Deputy environmental protection officer: Manager of environmental Manager of facilities engineering & operations dept group

Energy-saving committee Pollution control managers ISO14001 Secretariat

Workplace environment meeting Department managers

Department environment Section & group managers Resident-operational meeting companies

9 Environmental Target

Every year, we set our environmental targets, by reflecting the achievements of the previous year, performance, requirements of Yokkaichi Plant, and changes in environmental conditions in the results of our environ-mental assessment. In FY2018, we were able to achieve our targets for all items. ■ Environmental target in FY2018 No. Environmental objective Environmental target Target Result Creating products that Reducing environmental impacts of products by 3 measures/year 3 measures 1 consider environmental nanofabrication process impacts 18,501t-CO₂/year 2 Reducing CO2 emissions (Indicator is reductions) 19,393t-CO₂ or more Addressing global warming Improvement of PFC emissions per unit 3 production* (Compared to FY2013 level) 84.7% or less 77.0% Improvement of the total amount of waste 4 generated (including valuables) per unit 37.6% or less 29.9% production* (Compared to FY2013 level) Improvement of industrial waste per unit 5 Efficient use of resources production* (Compared to FY2013 level) 44.5% or less 40.4%

Improvement of the amount of water received 6 per unit production* (Compared to FY2013 level) 40.5% or less 34.6% Improvement of the total amount of chemicals 7 Reducing environmental discharged per unit production* (Compared to 36.5% or less 35.4% risks FY2013 level)

8 Planting flowers Promoting the planting flowers all year round Replanting and Maintenance

External environmental events - Summer Eco Fair 9 events/year 3 events - Yokkaichi Eco Fair 3 - Mie Eco Fair

10 Environmental meetings with the community once a year once

-Japanese ver. : Aug -Japanese ver. : issued in Aug Publication of environmental report 11 -English ver. : Dec -English ver. : issued in Dec

1 neighborhood -Chubu Nish elementary school (June 21) 12 Environmental classes for children elementary school or -Yasato Nish elementary school (July 5) more -Mie Kita elementary school (Oct. 4) Charity eco bazaar 13 Corporate social once a year or more held on Oct. 4 responsibility and (Donation to Yokkaichi greening fund) (36,800 Yen donated) environmental Unnecessary calendars and notebooks collection 1st: 128 calendars and 37 diaries collected on Dec 20 communication twice a year or more 14 (Reuse at care home, kindergarten, and nursery) 2nd: 610 calendars and 248 diaries collected on Jan 21 Miswritten postal cards collection (Educational all year round a total of 106 sheets (4,978 Yen) 15 support for developing countries) Used stamps collection 16 (Agricultural support for India and Indonesia) all year round a total of 4,216 sheets

Disposable contact lens packages collection 17 (Support for a corneal transplant) all year round a total of 29,550 pieces

Used feather products collection 18 all year round 2 down comforters and 6 down jackets (Contribution to society in a region)

Pet bottle caps collection a total of 1,244,000 pieces 19 all year round (Polio vaccine support for the world's children) (equivalent to 2,488 servings of vaccine) Promotion monthly events (Environmental 20 Enhancement of month, 3R promotion month, Energy-saving 3 times a year 3 times environmental month) 21 awareness Publication of "Eco time" magazines 6 times a year 6 times

Continued observation of the rare plant "Lilium 22 all year round Observation at the field (every month) Biodiversity japonicum" transplanted from our factory preservation activities Supporting the owl protection project (Mie 23 all year round Installation of observation equipments (Jan.) Biodiversity Partnership Agreement)

* For PFC, waste, water, and chemical substances, volume-based memory capacity is used as an indicator for basic-unit goals that allows appropriate assessment.

10 Environmental Management System

Management of Chemical Substances

Chemical substances may cause serious environmental pollution We aggregate the amount of chemicals handled monthly by and, as a result, adversely affect human health and the ecosystem means of a Chemical Substance Control System. Using this if inappropriately managed. data, we aim to monitor the amount of chemical substances Our basic policy on chemical substances is released into the air and water area, and the amount - to minimize the use of hazardous chemical substances, transferred as waste. - to reduce the use of chemical substances and switch to substitutes with less environmental impact, and - to ensure the appropriate management of chemical substances.

Chemical substance management system

Reduction of Chemical Substances

■ Examples of reducing chemical emissions The wastewater from the wafer polishing process is subjected to biological decomposition treatment with low environmental impacts. Iron(II) chloride Usage reduction Previously, the wastewater from the polishing process required Wafer polishing a reduction treatment of iron (II) chloride before biological process treatment. We changed the liquid chemical used in the polishing process to one not require a reduction treatment, and reduced the amount of iron (II) chloride by 9 t/month. Wastewater We will continue to develop technologies with 3R (Reduce, treatment facility Reuse, Recycle) in mind to reduce environmental impacts. Wastewater

Change to the chemical that Discharge of do not require reduction treated water treatment

11 High-efficiency Manufacturing

Reduction of Greenhouse Gases

■ Example of reducing GHG emissions in manufacturing equipment Large amount and various kinds of GHGs are used in the production processes: the P-CVD (plasma CVD) process where insulating films are formed on wafers, and the DRY (dry-etching) process where wirings and contact holes are formed by nanofabrication technology. We regard “emission reduction from the source” as the key to the reduction of GHG emissions, and have implemented; - Installing abatement devices to decompose GHGs into ones with small warming potential. - Shortening the cleaning time of the reaction chamber in the production device. - Improving efficiency in installing the production device. - Optimizing the processing condition of products. We will continue to promote measures to reduce GHGs linked to a manufacturing of new products in the future. Abatement Device

Ratio of the total amount No Measures Process GHGs of reduction in 2018 (%)

1 Installing the abatement device P-CVD, CF₄, C4F₈, CHF₃, SF₆, NF₃, 99.916 % DRY, Metal CH₂H₂, CH₃F, CH₄, N₂O 2 Shortening the cleaning time Metal, CVD NF₃ 0.076 % 3 Improving efficiency in installing the production device DRY CF₄, CHF₃ 0.006 % 4 Optimizing the processing condition of products DRY CF₄, CHF₃ 0.002 %

Reduction of Energy-derived CO2

■Example of energy saving: Making a chilled water pump of a refrigerating machine into an inverter

Previously, the chilled water pump was operated at 100% Before Rotating speed:100% rotation, and the valve was throttled to adjust to the Chilled required pressure at the load destination. From Refrigerator water To load load We have introduced the inverter that can change the power Header pump Header Power supply Valve frequency of the chilled water pump, and we are able to frequency 60 Hz adjustment control the speed of the chilled water pump rotation. As a result, the pressure at the load destination can be Chilled water / Conditioned air adjusted while the valve is fully open, reducing the power consumption of the chilled water pump. 1,600 tons of CO2 After Rotating speed:Control was reduced in FY2018. Chilled From Refrigerator water To load load pump Valve Header Header Fully opened Inverter

Power supply freqency adjustment

Chilled water / Conditioned air

12 High-efficiency Manufacturing

Reduction of Wastes

In spite of the upward trend in the total waste generated, we are working to reduce the amount of chemicals and gases used, and promote recycling or selling of waste generated. In addition, a new second recycling building has been established, corresponding to the increase in waste generation.

■Example of effective utilization of resources The hydrofluoric acid waste liquid produced in a manufacture process is treated with recovering facilities of calcium fluoride and collected as calcium fluoride (the artificial fluorite). As a result, the hydrofluoric acid containing sludge has

been reduced by 30%. Fluorine-based materials such as Second Recycling Building hydrofluoric acid are made from the recovered calcium fluoride (the artificial fluorite) by the manufacturer of fluorine-based products.

Manufacturer of Recovering fluorine-based Calcium fluoride facilities of products calcium fluoride

Fluori

ne products

Hydrofluoric acid

Semiconductor producing METI Minister's Award 2014 for Resources process Recirculation Technologies and Systems

13 Reducing the Environmental Impact of Products

Management of Chemical Substances in Products

Regulations controlling chemical substances in products have laws and regulations of each country. been strengthened year after year. They include some major At the stages of product design and engineering, KIOXIA regulations such as the EU’s RoHS Directive, Packaging Waste Group conducts assessments of the environmental impact of Directive, and REACH Regulation. Similar regulations to EU RoHS products as a part of its engineering process. Information on also went into effect in various countries around the world. chemical substances contained in new raw materials and KIOXIA Group has designated certain chemicals used by KIOXIA products is reviewed to identify the existence or use of Group as "Procurement Prohibited Substances" and "Procurement Prohibited Substances" and "Procurement "Procurement Controlled Substances" in order to either prohibit Controlled Substances" as designated by KIOXIA Group. or restrict content in products in accordance with applicable

Category Definition

Procurement The substances which are prohibited to be contained in procured items as determined by KIOXIA Group in this guideline prohibited procurement-prohibited substances shall not be intentionally contained in procured items in all applications except for substances*1 exemptions in certain applications as set forth in this guideline. For substances having a restrict value, the content as (Rank A) impurities shall be lower than the restrict value.

Procurement The substances which shall be controlled in procured items as determined by KIOXIA Group in this guideline. controlled Procurement controlled substances are permitted to be contained in procured items intentionally, but these substances' substances*2 content shall be controlled and disclosed to KIOXIA Group without omission. If procurement-controlled substances are (Rank B) contained in procured items intentionally and/or as known ingredients, the content shall be reported from supplier to KIOXIA Group. For substances having a control value, the content as impurities shall be lower than the control value.

*1 Cadmium and its compounds, Hexavalent chromium and its compounds, Lead and its compounds, Mercury and its compounds, Polybrominated biphenyls (PBBs), Polybrominated diphenyl ethers (PBDEs, DecaBDE), Phthalate esters (DEHP, DBP, BBP, DIBP), etc. *2 Arsenic and its compounds, Bismuth and its compounds, Nickel and its compounds, Selenium and its compounds, Zinc and its compounds, Chlorinated paraffins (except Short-chained Paraffin Chloride), Trivalent Chromium compounds, Cobalt and its compounds, Cyanogen and its compounds, Perfluorocarbon (PFC), Hydrofluorocarbon (HFC), Manganese and its compounds, Sulfur hexafluoride (SF6), PFASs, etc.

Green Procurement

KIOXIA Group Green Procurement Guideline serves three purposes. (1) Clarify the fundamental policy of KIOXIA Group in selecting and procuring environmentally preferable materials; (2) Clarify requirements for KIOXIA Group's suppliers; and (3) Promote cooperation between KIOXIA Group and its suppliers in order to facilitate compliance with applicable environmental regulations around the world. To promote green procurement, KIOXIA Group requests suppliers, to positively engage in the "promotion of environmental protection by suppliers," "supply of products, parts, and components, materials, etc. with minimal environmental impact," and "cooperation in various surveys." This Guideline describes the details of our requests. We ask our suppliers to understand our requests and survey objectives and cooperate with us.

14 Communication

Education and Training

■ Environmental education Course Theme

We provide all our employees with environmental education to Stratified education upgrade the level of our environmental activities. The e-learning For managers Responsibilities and authority program for general employees aims to deepen their

understanding of the environmental management system at For general Revisions to EMS, Environmental employees policy, Objectives and, targets Yokkaichi Plant.

Education programs are prepared depending on the employees’ For new or Global Environmental issues, position and function to improve their operations, as well as transferred personnel EMS, Environmental policy environmental awareness and job knowledge. We constantly

update all these programs. education Functional Compliance with environmental laws, For specific environmental impact incurred by non- We also provide education for internal environmental auditors employees conformance with operation standards annually to further advance their competence. and procedures for specific jobs For Roles and responsibilities,

environmental Revisions to environmental laws auditors

■Special events Every year, Yokkaichi Plant implements various activities to enhance employees’ consciousness of environment: June is designated as Environment Month; October is the 3Rs* Promotion Month; and February is the Enhance Energy-saving Month in Japan. *3Rs: Reduce, Reuse, Recycle

Lecture on the owl protection project Tour of Yokkaichi-shi Clean Center (Environment Month) (3Rs Promotion Month)

■"Energy saving" wallpaper and "Eco time" magazine To raise the environmental awareness of employees, "Energy saving" wallpaper was published in 2014, featuring topics such as energy saving activities in Yokkaichi Plant, interview with a person in charge of energy saving in the division, and the trend of energy in and outside Japan. Furthermore, "Eco time" magazine was published in 2017, featuring topics such as environmental activities in Yokkaichi Plant, original environmental activities in divisions, and environmental trend in and outside japan.

"Eco time" magazine "Energy saving" wallpaper 15 CSR and Regional Communication

■Social contribution activities through recovering valuables All employees including resident companies are making efforts In future, we will continue to promote environmental activities into social contribution activities. One of these activities is the that contribute to society and raise the environmental "Charity eco bazaar". Unwanted household goods are donated awareness of employees even more. to the bazaar that can be reused and all proceeds are donated to the tree planting fund in Yokkaichi-shi.

2007 2008 2012 2014 2015 2016

Collecting calendars Collecting PET Charity eco bazaar Collecting discarded Collecting used Collecting down Collecting contact and notebooks bottle caps postcards postage stamps quilts lens cases

Support for polio Support for Reuse at social Support for Support for Support for Support for local prevention in education in contribution dissemination and welfare facilities reforestation in agriculture in raising awareness of developing countries Yokkaichi City developing countries Indnesia activities corneal transplantation

■Environmental report We had issued the environmental report every year since 2003 in order to increase an understanding among the public of our environmental activities. We will continue to issue the environmental report to make it easier to understand. An environmental brochure for children is also issued.

Environmental report environmental brochure for children ■Environmental meeting with residents' association For the purpose of local environmental protection, the meeting with local community association is held every year to report on our environmental protection activities including measurement data on water and air, and provide tours of environmental facilities. We will continue to communicate with the local community in the future, aiming for harmonious business activities. Environmental meeting Showing the video which ■Exhibition recorded training scenery

We participated in the exhibition hosted by Yokkaichi-shi and Mie, and introduced our environmental activities, such as energy saving in Yokkaichi Plant, and our memory products.

Summer Eco-fair Yokkaichi Eco-fair ■Environmental lessons for children We conduct environmental classes at nearby elementary schools, and make efforts to provide them with opportunities to be aware of the environment in the lessons. We are aiming for a fun lesson utilizing the local mascot characters so as to please children.

Yokkaichi Municipal Mie Kita Yokkaichi Municipal Yasato Elementary School Nishi Elementary School

16 Communication

Evaluation by External Parties

■Recognition of distinguished person in promoting energy saving (FY2018) Two employees of our factory received recognition of distinguished person in promoting energy saving activities such as energy management, education for energy saving from the Energy Conservation Center, Japan.

■Collecting PET bottle caps "Achievement Award" (FY2017)

In October 2008, we began collecting PET bottle caps and donating vaccines to children in developing countries through the NPO Eco Cap Promotion Association. In April 2015, we changed the donation destination of bottle caps to the NPO “Re Lifestyle” and continued collection activities. These activities over the past three years were highly evaluated, and received the 2017 "Achievement Award" from "Re Lifestyle".

17 Data

Compliance with Laws and Regulations

■Atmospheric measurements Regulated value Voluntary control Actual measurements Measurement frequency NOx (ppm) 130 or less 72 or less 41 Once a year

SOx (Nm3/h) 1.2 or less 0.099 or less <0.01 Once a year

Soot (mg/m3) 50 or less 35 or less <1 Twice a year

■Wastewater measurements (No.1 drainage outlet to river) Regulated value Voluntary control Actual measurements Measurement frequency

pH 5.8 - 8.6 *1 6.5 - 8.0 7.3 - 7.9 Once a month BOD (mg/l) 20 or less *1 4.0 or less 0.9 Once a month

COD (mg/l) 20 or less *1 4.0 or less 2.9 Once a week

SS (mg/l) 70 or less *1 3 or less 1 Once a month

*2 Nitrogen (mg/l) 60 or less 6.0 or less 2.2 Once a week

*2 Phosphorus (mg/l) 8 or less 0.45 or less 0.04 Once a month Fluorine (mg/l) 8 or less *2 4.5 or less 2.1 Once a week

*1 Mie Prefectural Ordinance for living Environment Conservation *2 Water Pollution Prevention Law

■Wastewater measurements (No.2 drainage outlet to sea) Regulated value Voluntary control Actual measurements Measurement frequency pH 5.0 - 9.0 * 6.5 - 8.0 7.0 - 7.8 Once a month

COD (mg/l) 120 or less * 10 or less 1.9 Once a week

SS (mg/l) 150 or less * 8 or less 1 Once a month

Nitrogen (mg/l) 60 or less * 15 or less 4.0 Once a week

Phosphorus (mg/l) 8 or less * 1 or less 0.04 Once a month

Fluorinne (mg/l) 15 or less * 12 or less 4.3 Once a week

* Water Pollution Prevention Law

■Sound noise and vibration measurements (west area) Measurement time Regulated value Voluntary control Actual measurements Measurement frequency Morning/Evning exemption 65 or less 50 4 times a year Sound noise 70 or less 50 (dB) Daytime exemption 4 times a year Night exemption 60 or less 49 4 times a year

Daytime exemption 65 or less <30 Once a year Vibration (dB) Night exemption 60 or less <30 Once a year

■Sound noise and vibration measurements (east area) Measurement time Regulated value Voluntary control Actual measurements Measurement frequency Morning/Evning 50 N/A 50 4 times a year Sound noise 55 51 (dB) Daytaime N/A 4 times a year Night 45 N/A 45 4 times a year

Daytime 65 N/A <30 Once a year Vibration (dB) Night 60 N/A <30 Once a year

18 Environmental Impacts

■Input ■Output

2016 2017 2018 2016 2017 2018

* Chemicals t 43,407 44,974 47,661 Greenhouse gas thousand t-CO2 1,404 1,726 2,297

City water thousand m3 42 60 78 Chemicals * t 689 687 653

Industrial water thousand m3 14,370 16,879 19,463 Wastes t 63,289 70075 80203

Waste water thousand m3 12,554 13,590 14,777

NOx t 19.8 21.5 28

* Chemicals which is targeted for reduction established by KIOXIA Group. SOx t 0 0 0

Environmental Accounting

KIOXIA group is working to introduce an environmental accounting in order to quantitatively grasp the cost and its effect related to Trends in environmental conservation cost environmental conservation among expenses related to business activities and make it an indicator of environmental conservation activities. billion yen Classification and calculation of environmental conservation costs are 60 based on the "Environmental Accounting Guidelines 2005 Edition" established by the Ministry of the Environment and the KIOXIA Group’s own standards. Environmental conservation costs were doubled from the 40 previous year to approximately 65.6 billion yen, including investment in environmental measures for the newly started production building.

20 Other Costs (green procurement, ISO14001 operations, and environmental education) Costs of resource utilization and waste reduction Costs of pollution protection (air and water) 0 2014 2015 2016 2017 2018

PRT R

The PRTR Law of Japan mandates a system to monitor the amounts of amounts released and transferred if the amount handled of a Class I chemical substances released to the environment (air, water area or Designated Chemical Substance per year is 1 ton or more (0.5 ton or soil), the amounts transferred, etc., and to aggregate the results and more for a Specified Class I Designated Chemical Substance) disclose data to the public. KIOXIA Group voluntarily discloses the amounts handled, consumed, This law, the Act on Confirmation, etc. of Release Amounts of Specific removed and recycled in addition to the amounts released and Chemical Substances in the Environment and Promotion of transferred for each Class I Designated Chemical Substance. Improvements to the Management Thereof, requires reporting of the

■ PRTR data for FY2018 unit : t/year consumed Amount recycled Amount number Substance removed Amount handled Amount Amount released Amount transferred Chemical substance name Total Total Air Water Soil Landfill Waste Sewage *3 *2

amount amount *1 Copper salts (Water-soluble, 272 except complex salt) 6.33 0.00 0.00 0.00 0.00 0.00 6.33 0.00 6.33 0.00 0.00 0.00 302 Naphthalene 13.62 0.06 0.00 0.00 0.00 0.06 13.56 0.00 13.56 0.00 0.00 0.00

374 Hydrogen fluoride and its 6115.91 1.42 0.00 0.00 0.00 1.42 0.00 0.00 0.00 0.00 6114.49 0.00 water-soluble salts 395 Peroxydisulfate water- 52.45 0.00 0.00 0.00 0.00 0.00 1.05 0.00 1.05 0.00 51.40 0.00 soluble salts 405 Boron and its compounds 1.10 0.00 0.00 0.00 0.00 0.00 1.10 0.00 1.10 0.00 0.00 0.00

438 Methylnaphthalene 30.17 0.13 0.00 0.00 0.00 0.13 30.04 0.00 30.04 0.00 0.00 0.00

*1 Amount consumed is the amount of a substance used in or associated with a product and shipped out of the Operations. *2 Amount removed is the amount of a substance transformed into other substances by neutralization, decomposition or reaction treatment performed at the Operations. *3 Difference between the amount of waste transferred and the amount recycled depends on whether waste is processed with charge or without charge. For example, when waste disposal is outsourced with charge even for recycling purposes, the amount is considered as the amount of waste transferred.

19 DATA

History of Yokkaichi Plant

Groundbreaking in line with development of 2005 Started operation of Fab 3 1990 "Yokkaichi Hi-Tech Complex" by Yokkaichi-shi Land Development Corporation 2007 Completion of welfare building 1991 Started construction of Fab 1 2007 Started operation of Fab 4 1992 Yokkaichi Plant founded 2011 Started operation of Fab 5 (primary period) 1993 Started construction of Fab 2 2014 Started operation of Fab 5 (secondary period) 1996 Started operation of Fab 2 2016 Started operation of new Fab 2 1999 Started manufacturing NAND-type flash memory 2018 Started operation of Fab 6 2003 Started operation of Asahi Test Center

History of Environmental Activities

1990 Concluded pollution control agreement with Yokkaichi-shi, Mie Concluded pollution control agreement with Yamanoissiki-cho, Yokkaichi-shi 1991 Started holding Yamanoissiki-cho local meetings 1994 Concluded the first comprehensive environmental audit Gained BS7750 environmental management system certification 1996 Gained ISO14001:1996 environmental management system certification 1999 Received the prize of Recycling Promotion Council Received the Chubu METI*1 Minister's Award (heat category) 2000 Received the prize of the Chairman of ECCJ*2 *1 Ministry of Economy, Trade, and Industry Achieved zero emissions, the first in Toshiba group *2 Energy Conservation Center, Japan 2001 Received the Chubu METI Minister's Award (electricity category, contribution to energy management) Received the Director-General, Agency for Natural Resources and Energy Award (heat category) 2003 Started publishing Yokkaichi Plant's environmental report 2004 Received the Director-General, Agency for Natural Resources and Energy, Award (electricity category) 2005 Gained ISO14001:2004 environmental management system certification 2006 Received Energy Saving Center's Award for outstanding performance at conference of successful cases of energy saving 2007 Started Kid's ISO14000 program (environmental education for children) 2008 Received the PRTR Outstanding Performance Award (Jury's Special Award)

Kid's Yokkaichi CO2 diet program (environmental education for children) 2009 Received the Gold Boiler Management Establishment Award Received the Encouraging Prize of Kansai Eco-Office Grand Award 2010 Started the Eco-kid's CO2 diet program (environmental education for children) Received the Technology Prize in the 48th All Japan Boiler Conference 2011 Received the Highest Performance Award of Toshiba Group Environmental Awards Received the Prize of the Chairman of ECCJ of Energy Conservation Group Prize 2012 Received the Prize of the Chairman of the 3R's (Reduce, Reuse, Recycle) promoter Prize Received the silver prize in an international section of Green Apple Award Received the Chubu METI Director's Award (energy management) Received the Prize of the Manager of Tokai branch office, ECCJ 2013 Received the Prize of the Chairman of the 3R's (Reduce, Reuse, Recycle) promoter Prize Received 1st place at 2nd Mie Environmental Awards Received the Prize of the Chairman of the 3R's (Reduce, Reuse, Recycle) promoter Prize 2014 Received the METI Minister’s Awards of Awards for Resources Recirculation Technologies and Systems

2015 Received the Prize of the Manager of Tokai branch office, ECCJ (Recognition of distinguished people in promoting energy saving) Received the "Recognition of distinguished people of city greening" award 2016 Received the letter of appreciation at the 65th Mie prefecture social welfare convention Received the Prize of the Manager of Tokai branch office, ECCJ (Recognition of distinguished people in promoting energy saving) Gained ISO14001:2015 environmental management system certification Received 13th Toshiba group CSR Award 2017 Received the Prize of the Manager of Tokai branch office, ECCJ (Recognition of distinguished people in promoting energy saving)

Starting an environment class at the Yokkaichi Pollution and Environmental Future Museum Received the "Achievement Award" from NPO "Re lifestyle" (Collecting PET bottle caps) 2018 Received the Prize of the Manager of Tokai blanch office, ECCJ (Recognition of distinguished people in promoting energy saving)

20 Editorial Policy

The purpose of this report is to facilitate the general public's further understanding of environmental management (environmental management and environmental consideration in business activities) at Yokkaichi Plant, KIOXIA Corporation. The Environmental Reporting Guidelines 2012 published by the Ministry of the Environment, were used as a reference for editing.

■ Applicable period ■ Organization Most of the performance data provided herein is from Yokkaichi Plant* and Asahi Test Center, activities in FY2018 (starting from April 1, 2018 to March 31, KIOXIA Corporation 2019) but some may contain data from previous years or * Including representative divisions and companies FY2019.

Environmental Protection Group Facilities Engineering & Operations Depaはment Yokkaichi Plant 800, Yamanoisshiki-cho, Yokkaichi City, Mie Prefecture 512-8550, Japan TEL: +81-59-330-1025 FAX: +81-59-330-1134 URL: https://www.kioxia.com/en-jp/top.html