2008 Acer CSR forum December 16th, 17th 2008 Sony’s CSR Activities Hidemii Tomita Hid T it CSR Department, Sony Corporation 2006 83,000 OKUOKU-YEN 2007 89,800 OKUOKU-YEN 【Sales】 (OKU-YEN) 90,000 80,000 SEMC PS2 ‘01 ‘00 PS3 ‘06 PSP ‘04 Music Game VAIO ‘96 40~60’s Tape Recorder Transistor Radio Micro TV PlayStation MD‘92 ‘94 TV Audio 2006 2007 2000 Video 1995 1990 1985 1980 1975 Trinitron 0 ‘68 Device Columbia Pictures ‘89 CBS Records ‘88 8mm Video ‘85 CD system ‘82 1970 Walkman Betamax ‘79 ‘75 75-YEN 1,500 1 500 OKUOKU 1970 20,000 IT/ Network So-net So net ‘95 40,000 30,000 Finance M i Movie 70’s Trinitron TV Portable Audio 60,000 50 000 50,000 80’s Broadcast & Professional Products established ‘46 70,000 90’s Digital AV/IT Game Content Telecom Sony Group Business Summary SSales l OOperating i RRevenue by Geographic Segment(%) Sales & Operating Revenue by Business Segment(%) Others Finance 3.5 6.2 Pi tur Picture 22.9 25.6 66 9 Electronics 66.9 El i 9.7 8.9兆円 Game 13 7 13.7 (trillion yen) 24.6 26.9 A di Audio Device Others 27% 6.1兆円 22% Video Sales & Operating Revenue of Electronics(%) 19% IT/Communication 9% 23% TV Year ended March 31 31, 2008 Sony Group Headcounts Business Headcounts Finance Picture Game Regional Headcounts Others Latin America 6,800 5,200 2.4% 7,400 Japan East Asia 5,100 33.9% 29.3% 180,500 Pan Asia 156,000 NA 10.7% 14 0% 14.0% 9.7% Electronics Europe Year ended March 31, 2008 Sony’s CSR: towards sustainability Sustainable Business Operation Sustainable Society Compliance Environment Social Contribution Product responsibility Technology Sustainable Design Employee Sustainable Lifestyle CSR Activities = Management towards Sustainability Stakeholders’ Trust Sony’s Sustainable Growth From “Environmental Report” To “CSR Report” Environmental Review Fiscal 1994 • • Environmental Review Fiscal 1997 • Basic Policyy Sony Env. Committee • Env. Performance data Disclosure of Midrange Action Program CSR Report R t 2003 • • • Corporate governance Compliance Linkage w/AR Environmental Review Fiscal 1999 • Environmental cost Environmental Report Social and Environmental 2001 Report 2002 • • Third Partyy Verification Consolidate envi. data • • Social activity Linkage w/webs CSR Report p 2008 • 6th CSR Report • Link between printed report and website components – Web: Completeness and broad information – Booklet: Focus on materiality and readability CSR Core Subjects Management • Corporate Governance • Compliance Product Responsibility • Supply Chain Management • Quality Management Employees • Diversity • Work-Life Balance Sustainable Society Ed ti ffor nextt generation ti • Education • Sustainable technology • Sustainable design g Environment • Climate Change • Take-back & Recycle • Hazardous substances Compliance Sony Group Code of Conduct, Sony Compliance hot line has been introduced group wide. Employee Diversity & Work Life balance • Diversity – Introduced the pilot “Mentor System” for female management – Received the first “Diversity Management Award” presented by Toyo Keizai Newspaper Company – Sony (in Japan) employed 321 individuals with disabilities, Representing 2.17% of our workforce, well ell abo above e the legal requirement eq i ement of 1.8% 1 8% • Work-life-balance – Most of female giving birth took the extended childcare leave and 90% have returned. – 345 employees took the leave and 9 were men. Community Activity •4.5 billion JPY on social contribution activities •28,000 employees participated in volunteer program under “Someone Needs You.” Value Chain & CSR Climate issues (Life cycle CO2 emission) Supply chain Manufacturing Product Use End of Life treatment Producer Supply chain management (Green Procurement, CSR procurement) Extended producer Responsibility Industry Collaboration is essential essential. Take back & Recycle With the introduction of recycling programs in Japan, North America, and Europe, Sony product recycling is now available in regions that account for about 70% of Sony product sales. – Sony joins B group in Japan, ERP in Europe – Voluntary take back scheme with Waste Management Inc. in US – WEGA to BRAVIA: Established the industry-first “closed-loop” system to recycle flame retardant plastic material for television. – Aims to use 32,000 tons recycled plastic by2010; double the amount of FY2006 Supply Chain Management • Sony has led the industry by introducing its own global standards for management of chemical substances, including Green Partner Environmental Quality Approval Program for Sony suppliers. • Sony introduced supply chain management based on EICC system such as Code of Conduct, SAQ, Joint Audit. Supply pp y Chain Management: g Green and CSR Green procurement (Chemical substance) CSR procurement (Based on EICC) Regulations for EnvironmentEnvironment Sony Supplier Code of Conduct Requirement related Substances (SS-00259) Certificate of Non-Use Measurement Data Self Assessment Questionnaire EICC Joint Audit Management Green Partner Auditing I t Internal l Inspection I ti Global Environmental Management System Global United Single Certification of ISO14001 Mid term target: Green Management 2010 Items Site Targets for FY2010 FY2000 (Numerical targets are in comparison with Global warming prevention Reduction of GHG for 7% Resource saving & recycling Waste Generation: Reduction more than 40% Recycling ratio: More than 99% (Japan) / 95% (outside Japan) Water consumption: Reduction for more than 20% Product & Recycling Chemical Substances VOC: Reduction more than 40% Complete treatment of equipment including PCB Global warming prevention Reduction of annual power consumption Grasp CO2 emission from logistics and implement reduction measures Resource saving & recycling Application of recycled materials: more than 12% Continual improvements on recovery rate and product recycling ratio Chemical Substances Prohibition, reduction and management of environmentally controlled substances Reduction of PVC & BFR LCA Perform assessment for all major categories Challenging target: Partnership with WWF Climate Savers Program of WWF(World Wide Fund for Nature) Commitments on Climate Savers ¾ Cut direct GHG emissions, calculated in terms of CO2, 7% from the 2000 level by 2010. ¾ Reduce CO2 emissions from product use by lowering energy consumption of major products. ¾ Cooperate with WWF to raise consumer awareness ¾ Support the view that average global temperature rise must remain below 2C above pre-industrial i d t i l times. ti GHG emission from sites: reduction of direct emission FY2007 by Business Group Others 42 DADC 14 TV 19 Component 56 Semiconductor 49 Non Manufacturing 27 Use of Renewable Energy: reduction of direct emission 1. Leading purchaser of Green Energy Certificate in Japan. 2. 43% of electricity used by Sony Operation is renewable energy in Europe . 3 Started application of renewable energy equivalent to 30 thousand 3. tons of CO2 in the US. Others 34% Sony Corporation 33% 5% 2% 4% Purchase from Japan Natural Energy Greenhouse Gas Emissions through value chain: direct & indirect emission Direct Emission 2.07 million tons Indirect Emission 19.34 million tons 1.12 million tons TV: More than 70% Site Logistics Product Energy Saving of LCD TV: reduction of indirect emission 310 kWh/Year Comparing 32 Inches TVs CRT TV 2002 Model 193 kWh/Year LCD TV 2005 Model 157 kWh/Year 86 kWh/Year LCD TV 2007 Model “Super Eco Model” LCD TV 2008 Model BRAVIA Europe KDL-32JE1 LCD TV Award (In Japan) First Award for 5 Star for All Consumer Electronics Models Sustainable Energy Energy saving Technology: LCD TV Further Challenge: Climate Savers Tokyo Declaration Thank You