Sony s CSR Activities

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1 2008 Acer CSR forum December 16 th, 17 th 2008 Sony s CSR Activities Hid i T it Hidemi Tomita CSR Department, Sony Corporation

2 Sales (OKU-YEN) 90,000 80,000 70,000 60,000 established s Trinitron TV Portable Audio ,000 OKU-YEN ,800 OKU-YEN 80 s Broadcast & Professional Products 90 s Digital AV/IT Game Content Telecom SEMC PS2 01 PSP PS3 06 Finance Movie Music Game 50, ~60 s Tape Recorder Transistor Radio Micro TV So-net 95 VAIO 96 IT/ Network 40,000 PlayStation MD Device 30,000 20,000 Trinitron Betamax 1,500 OKU-YEN 75 Columbia Pictures 89 CBS Records 8mm Video 88 CD system Walkman 79 TV Audio Video

3 Sony Group Business Summary Sales & Operating Revenue by Business Segment(%) Others Finance Picture Electronics Sales Operating Revenue by Geographic Segment(%) Game 兆円 (trillion yen) Device Others 27% 9% Audio Sales & Operating Revenue of Electronics(%) 6.1 兆円 22% Video IT/Communication 19% Year ended March 31, % TV

4 Sony Group Headcounts Business Headcounts Regional Headcounts Game Picture Finance Others Latin America 6,800 5, % 7,400 5,100 East Asia 29.3% Japan 33.9% 180,500 Pan Asia 156, % NA 14.0% Electronics 9.7% Europe Year ended March 31, 2008

5 Sony s CSR: towards sustainability Sustainable Business Operation Sustainable Society Compliance Product responsibility Employee Environment Technology Social Contribution Sustainable Design Sustainable Lifestyle CSR Activities = Management towards Sustainability Stakeholders Trust Sony s Sustainable Growth

6 From Environmental Report To CSR Report Environmental Review Fiscal 1994 Environmental Review Fiscal 1997 Environmental Review Fiscal 1999 Environmental Report 2001 Social and Environmental Report 2002 Basic Policy Env. Performance data Environmental cost Sony Env. Committee Disclosure of Midrange Action Program Third Party Verification Consolidate envi. data Social activity Linkage w/webs CSR Report 2003 Corporate governance Compliance Linkage w/ar

7 CSR Report th CSR Report Link between printed report and website components Web: Completeness and broad information Booklet: Focus on materiality and readability

8 CSR Core Subjects Management Corporate Governance Compliance Product Responsibility Supply Chain Management Quality Management Employees Diversity Work-Life Balance Sustainable Society Education for next generation Sustainable technology Sustainable design Environment Climate Change Take-back & Recycle Hazardous substances

9 Compliance Sony Group Code of Conduct, Sony Compliance hot line has been introduced group wide.

10 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 above the legal requirement ement of 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.

11 Community Activity 4.5 billion JPY on social contribution activities 28,000 employees participated in volunteer program under Someone Needs You.

12 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.

13 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

14 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 Sony introduced supply chain management based on EICC system such as Code of Conduct, SAQ, Joint Audit.

15 Supply Chain Management: Green and CSR Green procurement (Chemical substance) CSR procurement (Based on EICC) Requirement Regulations for Environment- related Substances (SS-00259) Sony Supplier Code of Conduct Management Certificate of Non-Use Measurement Data Green Partner Auditing Self Assessment Questionnaire EICC Joint Audit Internal Inspection

16 Global Environmental Management System Global United Single Certification of ISO14001

17 Mid term target: Green Management 2010 Items Targets for FY2010 (Numerical targets are in comparison with FY2000 Site Global warming prevention Resource saving & recycling Reduction of GHG for 7% Waste Generation: Reduction more than 40% Recycling ratio: More than 99% (Japan) / 95% (outside Japan) Water consumption: Reduction for more than 20% Chemical Substances VOC: Reduction more than 40% Complete treatment of equipment including PCB Product & Recycling Global warming prevention Resource saving & recycling Chemical Substances LCA Reduction of annual power consumption Grasp CO2 emission from logistics and implement reduction measures Application of recycled materials: more than 12% Continual improvements on recovery rate and product recycling ratio Prohibition, reduction and management of environmentally controlled substances Reduction of PVC & BFR Perform assessment for all major categories

18 Challenging target: Partnership with WWF Climate Savers Program of WWF(World Wide Fund for Nature) Commitments on Climate Savers Cut direct GHG emissions, calculated in terms of CO2, 7% from the 2000 level by Reduce CO2 emissions from product use by lowering energy consumption of major products. Cooperate with WWF to raise consumer awareness Support the view that average global temperature rise must remain below 2C above pre-industrial i times.

19 GHG emission from sites: reduction of direct emission FY2007 by Business Group Others 42 DADC 14 Component 56 TV 19 Semiconductor 49 Non Manufacturing 27

20 Use of Renewable Energy: reduction of direct emission 1. Leading purchaser of Green Energy Certificate in Japan % of electricity used by Sony Operation is renewable energy in Europe. 3. Started application of renewable energy equivalent to 30 thousand tons of CO2 in the US. Others 34% Sony Corporation 33% 5% 2% 4% Purchase from Japan Natural Energy

21 Greenhouse Gas Emissions through value chain: direct & indirect emission Direct Indirect Emission Emission million tons 2.07 million tons 1.12 million tons TV: More than 70% Site Logistics Product

22 Energy Saving of LCD TV: reduction of indirect emission CRT TV 2002 Model 310 kwh/year Comparing 32 Inches TVs 193 kwh/year 157 kwh/year LCD TV 2005 Model 86 kwh/year LCD TV 2007 Model LCD TV 2008 Model LCD TV (In Japan) 5 Star for All Models Super Eco Model BRAVIA KDL-32JE1 Sustainable Energy Europe Award First Award for Consumer Electronics

23 Energy saving Technology: LCD TV

24 Further Challenge: Climate Savers Tokyo Declaration

25 Thank You

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